1Q11 Results
May, 2011
2
Dividends distribution of R$ 212.3 million related to 1Q11 results, corresponding to R$ 0.53 per common share and R$ 0.58 per preferred share
Energy generation 36% higher than physical guarantee
R$ 35 million invested, mainly, in the modernization of the Nova Avanhandava (347 MW), Ibitinga (132 MW) and Caconde (80 MW) power plants
FinanceFinance
OperationalOperational
1Q11 Highlights
SubsequentEventSubsequentEvent
Net revenue of R$ 416 million, down 9% compared to 1Q10
5% decrease in costs and operational expenses
Ebitda reached R$ 338 million, with margin of 81%
Net income of $ 193 million is in line with the 1Q10 recurring net income1
1 – Excluding the non-recurring event in the 1Q10 relating to the legal dispute with Furnas, in the amount of R$ 28 million, net of taxes.
3
Reservoirs levelWater inflow (LT Avg1)
1 – Long term average
Brazilian reservoirs in comfortable levels due to good rainfall
Southeast South Northeast North
87%
61% 66
% 85%
98%
145%
51%
79%
158% 19
0%
73%
124%
Southeast South Northeast North
81%
47%
85%
92%
83% 92
%
73%
99%
83% 92%
76%
99%
1Q09 1Q10 1Q11
4
Reservoirs level of AES Tietê’s power plants1
High level of AES Tietê’s reservoirs reflects the good rainfall level during 1Q11
Caconde HPP
1 – As of 03/31/2011
Caconde Água Vermelha
Barra Bonita Promissão
98%
100%
94% 98%
93%
100%
94%
95%99
%
99%
90% 100%
1Q09 1Q10 1Q11
5
Maintenance of high operational availability with generated energy 36% higher than physical guarantee in 1Q11
Energy Generation (MW Avg.1)
Generation/Physical guaranteeGeneration - MWAvg
1 – Generated energy divided by the amount of period hours
118%
130%125%
143%
136%
2008 2009 2010 1Q10 1Q11
1,512 1,665 1,5991,979
1,612
6
Reduction of energy billed in the 1Q11 to AES Eletropaulo
Billed Energy (GWh)
-15%
1Q10 1Q11
3,015 2,526
566 587
643 424
52108
4,276 3,645
AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts
7
Investments1 (R$ million) 2011 Investments
2
Investments in the modernization of Nova Avanhandava, Ibitinga and Caconde power plants
Investments New SHPPs
1 - Do not include capitalization of interests during plants modernization and development of projects2 - Small Hydro Power Plants
2009 2010 2011 (e) 1Q10 1Q11
4370
152
730
13
12
6
1
4
57
82
158
8
35
89%
6%5%
Equipment and Modernization
New SHPPs
IT projects
8
Plant localization (Canas/SP)
• Expected Timetable- May 26, 2011: Public Hearing- July/11: Expectation of issuance of Prior License (expected)- 2nd half of 2011: Power Auction realization (expected)
Expansion of 550 MW of installed capacitythrough the Termo SP Project
• Project features
- Combined cycle using natural gas- 2 gas turbines, 2 heat recovery boilers and 1 turbine steam- Estimated investment of R$ 1.1 billion- Natural gas consumption: 2.5 million m3/day
• Project objectives- Expansion of installed capacity in the State of São Paulo- Offering competitively energy prices
Project Website: www.aestiete.com.br/termosaopaulo
9
Net revenue (R$ million)
9% reduction of net revenue reflecting the volume of sales to AES Eletropaulo
- 9%
AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts
1Q10 1Q11
437 385
16 17
714
460 416
10
Costs and operational expenses1 (R$ million)
5% reduction in costs and expenses due to locks’bi-annual maintenance occurred in 2010
1 – Do not include depreciation and amortization
1Q10 Financ. Comp. for Use of Water Res.
Transmission and
Connection
Energy Purchased for
Resale
Locks Others PMSO 1Q11
82
78
2.6
0.8
4.8 4.0
1.1
11
Ebitda (R$ million)
Ebitda margin stable in 81%
EBITDA Margin Ebitda
1Q10 1Q11
378
338
82% 81%
- 10%
12
Financial Results (R$ million)
Financial result benefited by Furnas revenue and by the lower expense due to exchange of debt
(R$21 million)
1Q10 1Q11 1Q10 1Q11
- 74%
Financial Results with non-recurring effect (R$ million)
(42.8)
(11)(0.2)
(11)
Non-recurring effect of the 1Q10 relating to the legal dispute with Furnas in the amount of 42.6 million
13
109% 110%
3.4% 2.5%
1Q10 1Q11
192 193
28
Recurring net income stable reflecting good performance in costs and expenses
Net Income (R$ million)
Distribution of R$ 212 million in dividends
related to 1Q11:
- R$0.53 per common share
- R$0.58 per preferred share
- Ex-dividends: May 13, 2011
- Date of payment: May 26, 2011
1
1 – Pay-out referred to dividends paid in the 1Q10 in relation to the net income adjusted by the IFRS 2 – 1Q10 non-recurring effect related to Furnas, net of tax
Pay-out
Yield PN
Non-recurring effect
Net Income
2
220
14
Reduction of final cash balance influenced by lower volume of sales in the 1Q11 and by the Furnas revenue in the 1Q101
574 499
-13%
Final Cash Balance (R$ million)
1Q10 1Q11
Operating Cash Flow (R$ million)
-18%
1 – Non-recurring event relating to the legal dispute with Furnas in the amount of R$ 43 million
1Q10 1Q11
366299
15
1Q10 1Q11
124.8% 113.9%
1.8
3.1
Exchange of debt allowed the reduction of average cost and extension of term
Net Debt (R$ billion)
1Q10 1Q11
0.40.5
0.3x 0.4x
Net debt Net debt / EBITDA
Average Cost and Average Term (Principal)
CDIAverage Term
14.9% 14.0%Effective Rate
1 – Percentage of CDI
1
The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance.Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes.
1Q11 Results