conference call 2q12
DESCRIPTION
Conference Call 2Q12. Highlights. Consumption growth of 1.5% compared to 2Q11, mainly driven by the commercial class with a consumption increase of 8.4%; On June/12, non-technical losses ratio reached 42.3% over the low-voltage market, due to the criteria change of longtime default clients; - PowerPoint PPT PresentationTRANSCRIPT
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Conference Call2Q12
DISTRIBUTION
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Highlights
Consumption growth of 1.5% compared to 2Q11, mainly driven by the commercial class with a consumption increase of 8.4%;
On June/12, non-technical losses ratio reached 42.3% over the low-voltage market, due to the criteria change of longtime default clients;
Collection reached 103.9% on 2Q12 , 1.9 p.p. above the 102.0% reached on 2Q11;
The quality indicators ELC and EFC, without removals, decreased from 3.29 to 2.74 and 1.40 to 1.68 respectively, when comparing the quarters;
In the first half, investments in distribution amounted R$ 302.3 million, 3.5% above the same period of the previous year.
GENERATION
Strong performance of the generation segment in the quarter, reflecting the increase in the spot prices and higher sales volume in the Free Market Environment;
SHPP Paracambi, in partnership with Cemig, with 25 MW of installed capacity started its operation in May;
The wind farm complex Alto Sertão I, the largest in Latin America, belonging to Renova Energia, with 14 wind farms and 294,4 MW of installed capacity in Bahia, started its operation in July;
Considering the stakes on the new plants, total installed capacity increased to 955 MW.
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Highlights
Operating cash flow (before interest payments and taxes) rose 16.4% to R $ 293.6 million in 2T12, R$ 41.3 million higher than operating cash generated in 2Q11. Including interest payments and taxes, the increase was 21.9%, or $ 34.3 million;
Net debt of R$ 3,516.6 million, with net debt / EBITDA of 2.8x.
RESULTS
CAPITALSTRUCTURE
12.1% increase in Net Revenue (without construction revenue) that reached R$ 1,635.7 million in 2Q12, highlighting the 48.3% increase in the net revenue generation segment.
PMSO consolidated cost reduced 3.9% in the quarter, down 5.3% in the distribution segment;.
R$ 255.8 million EBITDA in 2Q12, 6.2% increase, with 15.4% margin. Considering the effect of regulatory assets and liabilities, EBITDA would be 34.5% higher than 2Q11.
Net Income of R$ 39.8 million in 2Q12, a 12.3% reduction when compared to 2Q11. Considering the effect of regulatory assets and liabilities, Net Income would be 83.0% higher than 2Q11.
On August 7, the Federal Administrative Council of Tax Appeals (“Carf”) judged the case related to the foreign subsidiaries Light Overseas Investment Limited (“LOI”) and LIR Energy Limited (“LIR”), liquidated in 2008 and 2010, respectively. With a favorable judgment to the subsidiary Light Serviços de Eletricidade (“Light SESA”), the tax assessment in the adjusted amount of R$529.4 million was dismissed, including fine and monetary restatement. There was no provision, therefore there is no effect on results.
ELECTRICITY CONSUMPTION¹
TOTAL MARKET (GWh)
1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process, the billed energy of the free customers Valesul, CSN and CSA were excluded in view of these customers’ planned migration to the Basic Network.
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Energy Consumption Distribution
RESIDENTIAL34%
INDUSTRIAL 7%OTHERS15%
FREE15%
COMMERCIAL29%
2T09 2T10 2T11 2T122T09 2T10 2T11 2T12
Série1
+1.5%
5,6695,460
22.7ºC
23.5ºC
2Q112Q10
5,2285,754
2Q09
22.7ºC
23.4ºC
+3.2%
2Q12
FREECAPTIVE
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
2Q11 2Q12
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – QUARTER
Total Market
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2Q11 2Q12 2Q11 2Q12 2Q11 2Q12 2Q11 2Q122T11 2T122T11 2T12 2T11 2T12 2T11 2T12 2T11 2T12
+1.5%
4.8804.916
5,669
789 837
5,754
+3.5%
857 889
905
48 48
937
+8.4%
1.5541.685
1,721
167180
1,866
-1.8%
426 373
1,000
574 609
982
-3.6%
2,043 1,969
set/09' set/10'
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Collection
COLLECTION RATE12 MONTHS
COLLECTION RATE BY SEGMENTQUARTER
2Q11
2Q12
PUBLIC SECTORLARGE CLIENTSTOTAL RETAILTotal Varejo Grandes Clientes
Poder Público
2T11 2T12
102.0%103.9%
105.0%100.7%
101.4%
100.1%
108.3%
107.4%
97.5% 98.2%
Jun/11 Jun/12jun-11 jun-12
Technical losses GWh
jun/11 set/11 dez/11 mar/12 jun/12
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Loss Prevention
INCORPORATIONGWh
1H121H11
ENERGY RECOVERYGWh
1H121H11
LOSS (12 MONTHS)
% Non-technical losses/ LV Market
% Non-technical losses / LV Market - Regulatory
Jun/11
Non-technical losses GWh
Sep/11 Dec/11Dec11 Mar/12
Reflets the change on
treatment's criteria in the
approach to long term
delinquent customers, based on
Aneel Resolution 414.
41.3%
41.3% 40.4
% 34.2%
5,247
2,293 2,335
5,326
7,6277,6197,582
40.7%
2,328
5,229
42.3%
5,466
2,372
7,839
5,316
2,349
7,665
1S11 1S12
56.7
82.3-31.0%
1S11 1S12
43.136.8
+16.9%
2T11 2T12 1S11 1S12
Net Revenue
NET REVENUE (R$MM)
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Generation 6.9%
Distribution 88.9%**
NET REVENUE BY SEGMENT (2Q12)*
Comercialization 4.2%
* Eliminations not considered
** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (2Q12)
Commercial 30.4%
Industrial 6.7%
Others (Captive) 13% Network Use (TUSD)
9.8%(Free + Concessionaires)
Residential 40.1%
Construction RevenueRevenue w/out construction revenue
+9.8%
1,637.9
1,797.9
2Q122Q11
162.2
1,458.7
1,635.7
179.2
+6.6%
1H121H11
3,146.3
3,402.5
299.7326.3
3,472.6
3,702,.2
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Operating Costs and Expenses
Manageable (distribution): R$ 321.8(21.8%)
Generation and Commercialization: R$ 104.5(7.1%)
Non manageable (distribution): R$ 1,053.0(71.2%)
* Eliminations not considered
DISTRIBUTION MANAGEABLE COSTS (R$MN)
COSTS (R$MM)*2Q12
Não gerenciáveis;
1.053,0; 71,18%Gerenciáveis; 321,8; 21,75%
Geração e Comercialização; 104,5; 7,07%
2T12
2T11 2T12 1S11 1S12
356.8321.8
-9.8%
2Q122Q11 1H121H11
661.5 651.6
-1.5%
R$ MM 2Q11 2Q12 Var % 1H11 1H12 Var %
PMSO 179.4 169.9 -5.3% 348.0 337.6 -3.0%
Provisions 99.3 84.0 -15.4% 159.6 170.5 6.8%
PCLD 79.5 72.2 -9.2% 143.9 133.9 -7.0%
Contingencies 19.8 11.8 -40.5% 15.7 36.7 133.1%
Depreciation 78.0 67.9 -13.0% 15.9 143.6 -6.7%
Total 356.8 321.8 -9.8% 661.5 651.6 -1.5%
EBITDA
CONSOLIDATED EBITDA (R$MM)
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EBITDA BY SEGMENT*2Q12
Generation 33.4%
(EBITDA Margin: 75.9%)
Commercialization 2.9% (EBITDA Margin: 10.9%)
Distribution 63.7%
(EBITDA Margin: 11.3%)
*Eliminations not considered2T11 2T12 1S11 1S12
255.8240.8
+6.2%
2Q11 2Q12 1H11 1H12
689.6675.7
+2.0%
Distribuição ; 166,2; 63,68%
Geração; 87,2; 33,41%
Comercialização; 7,6; 2,91%
2T12
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EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12EBITDA2Q11
EBITDA2Q12
Net Reven
ue
Non-Managabl
e Costs
Managable Costs (PMSO)
Provisions
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Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
2Q11
Adjusted EBITDA
2Q12
246 241
177
(186)
8 15 256
76 332
EBITDA – 2Q12/2Q11(R$ MM)
EBITDA
+34.5%
+6.2%
-12.3%
+83,0%
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Net Income
2Q11 2Q12EBITDA
Financial Result
Taxes Others
Adjusted Net
Income2Q11
Regulatory Assets
and Liabilitie
s
Regulatory Assets
and Liabilitie
s
Adjusted Net
Income2Q12
NET INCOME – 2Q12/2Q11(R$ MM)
2012 2013 2014 2015 2016 Após 20163T09 3T10 9M09 9M10
1T12
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Average Term: 3.5 years
AMORTIZATION SCHEDULE* (R$ MM)
Indebtedness
Nominal CostReal Cost
NET DEBT
* Considering Hedge
2007 2008 2009 set/10
Custo Real Custo Nominal
2007 2008 2009 set/10
Custo Real Custo Nominal
* Principal only
COST OF DEBT
US$/Euro 1.3%*
CDI/Selic 77.3%
TJLP 21.4%
Net Debt / EBITDA
2012 2013 2014 2015 2016 After 2016
jan/11 jan/12
2,549.3
3,516.3
2.02.8
Jun/12Jun/11
289
557
803687
788 830
2009 2010 2011 jun/12
Custo Nominal Custo Real
2011201020092007 2008 2009 set/10
Custo Real Custo Nominal
4.13%
9.25%
5.30%
9.84%
4.87%
11.08%
4.51%
11.01%
Jun/12
2008 2009 2010 2011 1S11 1S12
Investments
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CAPEX BREAKDOWN (R$MM)
2Q12
CAPEX (R$MM)
Investments in Electric Assets (Distribution)
+32.5%
20102009
563.8546.7
928.6
700.6
2011 1H121H11
328.4337.1-2.6%
292.0
45,1
302.3
26,0
453.8
92.9
446.9
116.9
518.8
181.8 758.7
169.9
2008
Generation Projects
1.3
Quality Improveme
nt56.9
Generation Maintenanc
e7.2
Others33.8
Develop. Of Distribution System
122.5
Losses Combat106,6
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Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Company’s control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Company’s strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Company’s actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results.
The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Company’s assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation.
This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Company’s businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.