4Q14 Results
4Q14 Results
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237/139/0
1. Highlights
2. Generation Exposure
3. Financial Information
Agenda
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Highlights
4
Material Fact, March 02, 2015
Concluded the acquisition of the equity interest of the Aracati Complex
ARACATI COMPLEX
Energia dos Ventos I S.A
Energia dos Ventos II S.A
Energia dos Ventos III S.A
Energia dos Ventos IV S.A
Energia dos Ventos X S.A
Before
T 50.99%
After
ARACATI COMPLEX
Energia dos Ventos I S.A
Energia dos Ventos II S.A
Energia dos Ventos III S.A
Energia dos Ventos IV S.A
Energia dos Ventos X S.A
T 99.99%
Acquisition of 33,839,400 common shares
Value of the transaction: R$ 47.5 million
Aracati
5
Notice to the Market, December 17, 2014
Startup in advance of the second generation unit from Ferreira Gomes HPP
ALUPAR INVESTIMENTO S.A. (“Company”), a publicly held company registered with
the CVM under number 2149-0, informs its shareholders and the market in general
that today its subsidiary, Ferreira Gomes Energia S.A. (“Ferreira Gomes”), obtained
authorization to begin the commercial operation of the second generation unit of
Ferreira Gomes HPP (“GU2”) with a capacity of 84 MW (eighty-four megawatts),
amounting along with the first generation unit 119.8 average MW (one hundred
nineteen point eight average megawatts) of physical guarantee, pursuant to ANEEL
Order number 4,815 published in the “Diário Oficial” today, anticipating the startup
in 73 days in relation to the expected date in the Concession Agreement, scheduled
for February 28, 2015.
GU2 was under test since December 3, 2014 and has provided power to the National
Interconnected System (SIN) since December 4, 2014, being remunerated by the
Difference Settlement Price – PLD (North Submarket) on the energy actually generated
in the period.
6
Material Fact, December 11, 2014
Sale of shares from Sinop
ALUPAR INVESTIMENTO S.A. (“Company” or “Alupar”), a publicly held company
registered with the Brazilian Securities and Exchange Commission (“CVM”) under no.
2149-0, pursuant to CVM Instruction 358, of January 3, 2002, as amended, and in
compliance with the Material Fact disclosed on August 29, 2013 and the Notices to the
Market disclosed on September 12, 2014 and November 17,2014, hereby informs its
shareholders and the market in general that, on this date, it has completed the
procedures necessary for its withdrawal from the SINOP HPP project, through the
sale of all the shares held in Companhia Energética SINOP S.A. to Usina Termelétrica
Norte Fluminense S.A..
7
Notice to the Market, November 28, 2014
Approval by CADE of the Act of Concentration number 08700.009463/2014-65
ALUPAR INVESTIMENTO S.A. (“Company”), a publicly-held company registered with CVM
under number 2149-0, hereby announces to its shareholders and the market in general
that it was published, on this date, in the Federal Official Gazette, the General
Superintendent Order No 1,541, in which the Administrative Council for Economic
Defense (“CADE”), Brazil’s antitrust authority, has approved, without any restrictions, the
Act of Concentration number 08700.009463/2014-65 between the requesting
companies Alupar Investimento S.A. and Furnas Centrais Elétricas S.A., for the
purchase and sale of the interests held by the requesting companies in the complexes
“Aracati” (composed of Energia dos Ventos I S.A., Energia dos Ventos II S.A., Energia dos
Ventos III S.A., Energia dos Ventos IV S.A. and Energia dos Ventos X) and “Fortim”
(composed of Energia dos Ventos V S.A., Energia dos Ventos VI S.A., Energia dos Ventos
VII S.A., Energia dos Ventos VIII S.A. and Energia dos Ventos IX).
Sale of the interest in Fortim Complex to Furnas Centrais Elétricas SA, was formalized by a contract of celebration to purchase and sale the shares on the date of December 23, 2014, which is subject to a condition precedent effectiveness of obtaining prior approval by the Department of Coordination and Control of State Companies - DEST. If DEST does not respond favorably to the acquisition of shares, Furnas will held Public Call to acquire, indirectly, these shares within 60 days.
8
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Generation Exposure
9
Source: CCEE
Generation Exposure
19.03 28.88 67.30
96.99 135.29
38.74 69.99
29.46
166.64
262.54
688.89
378.22
822.83 822.83 822.83 806.97
412.65
592.54
709.53 728.95
776.88 804.54
601.21
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14
(R$ MM) Total Energy
Purchase
Accounted Numbers
1Q14 2Q14 3Q14 4Q14
GSF R$ 25.7 R$ 1.4 R$ 6.4 R$ 9.6 R$ 8.3
Seasonalization R$ 17.1 - R$ 1.7 R$ 8.1 R$ 7.3
7 MWavg R$ 23.4 - R$ 3.3 R$ 10.0 R$ 10.1
SWAP R$ 1.5 R$ 1.5 - - -
Pis and Cofins Credit R$ 2.0 R$ 0.1 - R$ 0,9 R$ 1,0
Total Energy Purchase R$ 65.7 R$ 2.8 R$ 11.3 R$ 26.9 R$ 24.6
Average PLD
R$ 688.89/MWh in 2014
R$ 726.68/MWh in 4Q14
GSF
90.63% in 2014
88.53% in 4Q14
10
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Financial Highlights
11
Financial Highlights – Consolidated
Key Indicators "CORPORATE LAW (IFRS)" R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%
Adjusted Net Revenue 1,343.5 1,206.4 11.4% 392.4 321.1 22.2%
EBITDA (CVM 527) 1,088.9 1,001.1 8.8% 301.6 249.3 20.9%
Adjusted EBITDA Margin 81.0% 83.0% (2.0 p.p) 76.9% 77.7% (0.8 p.p)
Financial Results (242.6) (182.2) 33.1% (74.5) (44.9) 65.7%
Consolidated Net Income 751.7 655.0 14.8% 193.9 164.4 18.0%
Subsidiaries' Minority Interest 388.9 365.1 6.5% 79.3 96.4 (17.8%)
Net Income Alupar 362.8 289.9 25.2% 114.6 68.0 68.6%
Earnings per UNIT (R$)* 1.74 1.39 25.2% 0.55 0.33 68.6%
Net Debt** 3,350.9 2,405.9 39.3% 3,350.9 2,405.9 39.3%
Net Debt / Ebitda*** 3.1 2.4 2.8 2.4
Key Indicators "REGULATORY" R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%
Net Revenue 1,297.8 1,111.1 16.8% 388.1 292.3 32.7%
EBITDA (CVM 527) 1,055.6 909.1 16.1% 303.8 234.2 29.7%
Adjusted EBITDA Margin 81.3% 81.8% (0.5 p.p) 78.3% 80.1% (1.8 p.p)
Financial Results (242.6) (182.2) 33.1% (74.5) (44.9) 65.7%
Consolidated Net Income 592.2 493.3 20.1% 173.8 136.5 27.3%
Subsidiaries' Minority Interest 304.5 280.9 8.4% 59.8 82.2 (27.3%)
Net Income Alupar 287.7 212.4 35.5% 114.0 54.3 109.8%
Earnings per UNIT (R$)* 1.38 1.02 35.5% 0.55 0.26 109.8%
Net Debt** 3,350.9 2,405.9 39.3% 3,350.9 2,405.9 39.3%
Net Debt / Ebitda*** 3.2 2.6 2.8 2.6
* Net Income / Units Equivalents (208,300,600) ** Including Securities under Non–Current Assets ***Annualized EBITDA
12
Financial Highlights Consolidated – Corporate Law
249.3
301.6
77.7% 76.9%
4Q13 4Q14
EBITDA (R$ MM) and Margin(1) (%)
68.0
114.6
4Q13 4Q14
Net Income (R$ MM)
321.1
392.4
4Q13 4Q14
Adjusted Net Revenue (R$ MM)
1,206.4
1,343.5
2013 2014
Adjusted Net Revenue (R$ MM)
289.9
362.8
2013 2014
Net Income (R$ MM)
1,001.1 1,088.9
83.0% 81.0%
2013 2014
EBITDA (R$ MM) and Margin(1) (%)
(1) Adjusted Ebitda Margin
13
Financial Highlights Consolidated – Corporate Law
14
Financial Highlights Consolidated – Regulatory
234.2
303.8
80.1% 78.3%
4Q13 4Q14
EBITDA (R$ MM) and Margin (%)
54.3
114.0
4Q13 4Q14
Net Income (R$ MM)
292.3
388.1
4Q13 4Q14
Net Revenue (R$ MM)
1,111.1
1,297.8
2013 2014
Net Revenue (R$ MM)
909.1
1,055.6
81.8% 81.3%
2013 2014
EBITDA (R$ MM) and Margin (%)
212.4
287.7
2013 2014
Net Income (R$ MM)
15
Financial Highlights Consolidated – Regulatory
16
Transmission Financial Highlights - Combined
. Key Indicators "CORPORATE LAW (IFRS)"
R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%
Adjusted Net Revenue 1,147.9 1,111.5 3.3% 291.4 290.1 0.5%
Adjusted Operating Costs* (87.0) (91.3) (4.7%) (23.4) (35.8) (34.7%)
Depreciation / Amortization (7.1) (5.8) 22.4% (1.9) (1.6) 21.1%
Operating Expenses (42.0) (39.2) 7.3% (14.5) (13.3) 8.8%
EBITDA (CVM 527) 1,018.9 981.0 3.9% 253.6 241.0 5.2%
Adjusted Ebitda Margin 88.8% 88.3% 0.5 p.p 87.0% 83.1% 3.9 p.p
Financial Results (164.0) (119.3) 37.4% (54.5) (31.2) 74.8%
Net Income 781.4 726.2 7.6% 168.6 178.5 (5.5%)
Net Debt** 2,187.4 1,439.9 51.9% 2,187.4 1,439.9 51.9%
Net Debt / EBITDA*** 2.1 1.5 2.2 1.5
Key Indicators "REGULATORY"
R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%
Net Revenue 1,062.6 995.3 6.8% 273.2 257.7 6.0%
Operating Costs (83.5) (75.6) 10.5% (22.0) (20.0) 10.0%
Depreciation / Amortization (119.0) (112.7) 5.6% (30.8) (28.5) 8.1%
Operating Expenses (42.0) (39.1) 7.4% (14.4) (13.3) 8.6%
EBITDA (CVM 527) 937.1 880.6 6.4% 236.8 224.4 5.5%
Ebitda Margin 88.2% 88.5% (0.3 p.p) 86.7% 87.1% (0.4 p.p)
Financial Results (164.0) (119.3) 37.4% (54.5) (31.2) 74.8%
Net Income 582.9 550.6 5.9% 138.8 148.4 (6.5%)
Net Debt** 2,187.4 1,439.9 51.9% 2,187.4 1,439.9 51.9%
Net Debt / EBITDA*** 2.3 1.6 2.3 1.6
*Adjusted Operating Costs: excluding infrastructure costs
** Including Securities under Non-Current Assets
*** Annualized EBITDA
17
1,111.5 1,147.9
290.1 291.4
2013 2014 4Q13 4Q14
Adjusted Net Revenue (R$ MM)
995.3 1,062.6
257.7 273.2
2013 2014 4Q13 4Q14
Net Revenue (R$ MM)
550.6 582.9
148.4 138.8
2013 2014 4Q13 4Q14
Net Income (R$ MM)
Corporate Law
Regulatory
726.2 781.4
178.5 168.6
2013 2014 4Q13 4Q14
Net Income (R$ MM)
981.0 1,018.9
241.0 253.6
88.3% 88.8% 83.1% 87.0%
2013 2014 4Q13 4Q14
EBITDA (R$ MM) and Margin(1) (%)
880.6 937.1
224.4 236.8
88.5% 88.2% 87.1% 86.7%
2013 2014 4Q13 4Q14
EBITDA (R$ MM) and Margin (%)
(1) Adjustd Ebitda Margin
Transmission Financial Highlights - Combined
18
Generation Financial Highlights - Combined
Key Indicators "CORPORATE LAW (IFRS)"
R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%
Net Revenue 288.9 181.3 59.4% 129.0 49.4 161.1%
Operating costs (35.9) (27.4) 30.7% (12.6) (4.2) 201.4%
Depreciation / Amortization (35.6) (33.4) 6.4% (10.7) (8.4) 28.1%
Energy Purchase (65.7) (28.3) 132.1% (24.6) (3.6) -
Operating Expenses (19.1) (12.9) 48.7% (6.8) (4.1) 64.2%
EBITDA (CVM 527) 168.3 112.7 49.3% 85.0 37.6 126.4%
Ebitda Margin 58.3% 62.2% (3.9 p.p) 65.9% 76.0% (10.1 p.p)
Financial Result (41.4) (45.6) (9.0%) (10.9) (11.1) (2.3%)
Net Income / Loss 82.2 29.0 184.0% 59.7 15.4 286.9%
Net Debt* 1,213.1 1,114.8 8.8% 1,213.1 1,114.8 8.8%
Net Debt / EBITDA** 7.2 9.9 3.6 7.4
* Includes Securities under Non-Current Assets
**Annualized EBITDA
19
Generation Financial Highlights - Combined
49.4
129.0
4Q13 4Q14
Net Revenue (R$ MM)
181.3
288.9
2013 2014
Net Revenue (R$ MM)
37.6
85.0
76.0% 65.9%
4Q13 4Q14
EBITDA (R$ MM) and Margin (%)
15.4
59.7
4Q13 4Q14
Net Income (R$ MM)
112.7
168.3
62.2% 58.3%
2013 2014
EBITDA (R$ MM) and Margin (%)
29.0
82.2
2013 2014
Net Income (R$ MM)
20
Indebtedness - Controlled
622.9
298.9
324.0
Gross Debt Equivalents Net Debt
Total Debt Dec/14
23%
77%
Debt Profile (%)
Short Term Long Term
37.3%
56.2%
6.5%
CDI
IPCA
Fixed
Total Debt Composition by Index (%)
582.8
40.1 Debentures
Finep
Total Debt Composition (in thousands of R$)
21
Indebtedness - Consolidated
3,977.0
3,350.8
626.2
Gross Debt Equivalents Net Debt
Total Debt Dec/14
Total Debt Composition by Index (%) Total Debt Composition (in thousands of R$)
14%
86%
Debt Profile (%)
Short Term Long Term
42.0%
28.3%
13.6% 1.7%
14.4%
CDI
TJLP
Fixed
Foreign Currency
IPCA
1,382.4
292.3
15.2 66.3
2,220.9
BNDES (TJLP / IGP-M)
Other Development Banks
Other Local Currency
Foreign Currency
Debentures
22
Indebtedness - Consolidated
Corporate (national scale) AA+
302.2
395.8
472.8
509.6
383.5 322.0 260.9
946.5 324.0 145.1 24.0
136.5
79.9 24.9
25.0
187.5
Cash and CashEquivalents
2015 2016 2017 2018 2019 2020 After 2020
Debt Amortization Schedule (R$ million)
Subsidiaries Holding
0.5
Bridges
62.5
23
Dividends
On September 15, 2014, the Company’s Board of Directors approved the distribution of interim dividends totaling R$99,984,288.00
from the profit reserves in the balance sheet dated December 31, 2013, properly ratified by the shareholders at the Extraordinary
General Meeting held on October 2, 2014. Additionally on March 5, 2015, the Board of Directors recommended the distribution of R$
249,960,720.00 of the profit of the fiscal year ended on December 31, 2014, to be approved at the Annual General Meeting to be
held on April 15, 2015. Therefore, considering the distribution of dividends deliberate at the Company’s Board of Directors on
September 15, 2014 (which were not imputed to the minimum mandatory dividend for the fiscal year ended December 31, 2014) and
the recommendation of the Board of Directors for distribution of dividends, amounting R$ 249,960,720.00 of profit for the year ended
on December 31, 2014. Thus total shareholder payments will reach R$350.0 million, equivalent to R$1.68 per Unit.
29.7
82.1
29.1 47.8 47.6
104.7
350.0 350.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2007 2008 2009 2010 2011 2012 2013 2014
Dividends History (R$ million) and Payout Ratio (%)
101.6%
88.6%25.0%25.0% 25.0%
50.0%
100.0%
127.1%
24
Disclaimer
The stand-alone and consolidated financial statements were prepared in
accordance with the accounting principles adopted in Brazil, which
include corporation law, the pronouncements, instructions and
interpretations issued by the Accounting Pronouncements Committee
(CPC) and the regulations of the Securities and Exchange Commission of
Brazil (CVM), combined with specific legislation issued by the National
Electric Power Agency (ANEEL). As the industry regulator, ANEEL has
powers to regulate the concessions. The results are usually presented in
both IFRS and former formats in order to permit comparisons with other
periods. However, the results presented in “Regulatory” format are not
audited. ALUPAR uses the audited results based on the IFRS principles to
declare dividends.
The forward-looking statements contained in this document relating to
the business outlook, projections of operational and financial results and
the growth prospects of ALUPAR are merely projections, and as such are
based exclusively on management’s expectations for the future of the
business. These expectations depend materially on changes in market
conditions and the performance of the Brazilian economy, the sector and
international markets and therefore are subject to change without prior
notice.
25
IR Contact
José Luiz de Godoy Pereira
IRO
Luiz Coimbra
IR Coordinator
Kassia Orsi Amendola
IR Analyst
Ph.: +55 (011) 4571-2400