apresentação conference call 1q12
TRANSCRIPT
1Q12 Results
May, 2012
2
Net revenue of R$ 540 million, 30% greater than 1Q11
R$ 20 million increase in expenses with energy purchased for resale and biannual locksmaintenance and R$ 19 million increase in costs and operational expenses
Ebitda reached R$ 423 million, with margin of 78%
Net income of R$ 246 million, an increase of 27% comparing to 1Q11
Investments totaled R$ 21 million, mainly in the modernization of Nova Avanhandava (347 MW) and
Ibitinga (132 MW) power plants
Energy generation 30% higher than physical guarantee and 10% greater than the total generated in
1Q11
1Q12 Highlights
Dividends distribution of R$ 264 million, related to 1Q12 results, corresponding to R$ 0.66 per
common share and R$ 0.73 per preferred share. Payment will occur on May 25, 2012.Dividends
Operational
Financial
3
Reservoirs Level inSIN1 PLD2 – Monthly Average (R$/MWh)
Despite the comfortable reservoir levels in SIN1 , lower rainfall in February, March and April pushed prices in the spot
market
1- Interconnected National System2- Spot Market Average Price
Southeast/ Middle-West
South Northeast North
83%92%
76%
99%
79%
35%
82%
99%
1Q11 1Q12
29
48
2612 17
32 23 20 2137
46
44
23
51
125
193
jan feb mar apr may jun jul aug sep oct nov dec
2010 2011 2012
A. Vermelha Promissão B. Bonita Caconde
99%
100%
90% 99
%
94%
78%
96%
98%
1Q11 1Q12 Generation/Physical guarantee
Generation - Mwavg
1 – As of 03/31/2012
4
Reservoirs level of AES Tietê’s power plants1 Energy generation (MW average3)
High level of Company’s reservoirs and operational availability
2 – Reservoirs volume3 – Generated energy divided by the amount of period hours
A. Vermelha2 B. Bonita2Promissão2 Caconde2
(11 km3) (3.6km3)(8.1km3) (0.6km 3)
Average: 98% 89%
136%
130%
130%
125% 124%
2009 2010 2011 1Q11 1Q12
1,6651,599 1,582 1,612
1,753
5
Investments in 1Q12
Investments in 1Q12 mainly oriented to the modernization of Nova Avanhandava and Ibitinga power plants
Investments (R$ million)
1 - Small Hydro Power Plants
86%
11%3%
Equipment and Maintenance
New SHPPs
IT Projects
2010 2011 2012(e) 1Q11 1Q12
70
156
34 19
12
19
42
82
175
174
3821
Investments New SHPPs1
6
Growth Opportunities and Capacity Expansion Obligation
Termo-SP Project
- Gas unavailability for A-5 in 2011 and A-3 Energy Auction in 2012
- Project registered in A-5 in 2012: term to present gas contract expires on June 1st, 2012
- Injunction suspending the Environmental License. AES Tietê presented its defense on April 27th
- Fullfillment of conditions to obtain the installation license
- April 26th: Presentation of the plan to extent the Company’s capacity
Termo Araraquara Project
- Acquisition of a purchase option in March, 2012
- Combined cycle, gas-fired power plant, with 579 MW of installed capacity
- The project has a high sinergy potential with Termo SP and is equally registered in A-5 auction in 2012
Expansion Obligation
1Q11 1Q12
2,526 2,879
587
1,256 424
570
108
162 3,645
4,867
7
AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts
Higher energy volume sold in 1Q12 due to the seasonality ofthe bilateral contract with AES Eletropaulo, besides the
energy sold in ERM* Billed Energy (GWh)
*ERM – Energy Reallocation Mechanism
*
+34%
Clients portfolio evolution
2012 2016 2020
Assured Energy (1,282 MW avg)
• Goals:
- Expand and diversify client portfolio by
2015
- Allocate most of the assured energy to
the free market
- Opportunity to negotiate the energy
from projects that the Company will
develop in coming years
New clientportfolio
Consolidatedportfolio
Strategy for energy contracting in 2016: client portfolio creation
1Q11 1Q12
385477
14
1817
46416
540
9
Changes in the seasonality and 8.65% readjustment in AES Eletropaulo’s contract contributed for the net revenue
expansionNet revenue (R$ million)
+30%
AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts
10
Operational costs and expenses¹ (R$ million)
1 – Do not include depreciation and amortization2 – Personnel, Material and Third-party services
1Q11 Energy Purchased for Resale
Locks Maintenance
Operational Provisions and Other Expenses
Personnel, Material and Third-party services²
Transmission and Connection
Financ. Comp. For Use of Water Res.
1Q12
78
114 117
119
75 4 3
Increase in expenses with energy purchased and biannual locks maintenance, besides the increase in operational
costs and expenses
11
Ebitda (R$ million)
Ebitda margin reached 78% in 1Q12
81% 78%
EBITDA Margin (%)1Q11 1Q12
338423
EBITDA
(11) (10)
12
Financial Result (R$ million)
1Q11 1Q12
CDI* variation and lower average cash balance impacted financial result
*CDI - Interbank Deposit Certificate
13
Net income 27% higher in 1Q12, reflecting the good performance of revenues
Net Income (R$ million)
Distribution of R$ 264 million in dividends related to 1Q12:
- R$0.66 per common share
- R$0.73 per preferred share
- Ex-dividends: May 04, 2012
- Date of Payment: May 25, 2012
1Q11 1Q12
193246
Net Profit
118%107%
Payout
2.5%2.9%
Yield Preferred Shares
1Q11 1Q12
499413
1Q11 1Q12
299382
14
Cash flow reflects higher revenues from the bilateral contract
Final Cash Balance (R$ million)Operating Cash Flow (R$ million)
+28% -17%
3.01
2.01
1
15
Low leverage with net debt/Ebitda of 0.3 times
Net Debt (R$ billion) Average Cost and Average Term (Principal)
1Q11 1Q12
0.45 0.54
Net Debt
0.4x0.3x
Net Debt/EBITDA
1Q11 1Q12
114% 115%
14.0% 11.3%Effective rate
1 – Percentage of CDI (Interbank Deposit Certificate)
The statements contained in this document with regard to thebusiness prospects, projected operating and financial results,and growth potential are merely forecasts based on theexpectations of the Company’s Management in relation to itsfuture performance.Such estimates are highly dependent on market behavior andon the conditions affecting Brazil’s macroeconomicperformance as well as the electric sector and internationalmarket, and they are therefore subject to changes.
1Q12 Results