Download - Presentation ? 2Q14 Results
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8/11/2019 Presentation ? 2Q14 Results
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Conference Call
2th Quarter 2014
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Highlights
Energy consumption grew by 3.0% between 2Q14 and 2Q13, driven by an 8.0% consumption
increase in the residential segment;
Non-technical losses/BT market in the last 12 months stood at 41.9%, 0.5 p.p. down quarter-over-
quarter with a drop of 2.3 p.p. year-over-year;
Collections fee in the quarter reached 103.5%, 0.7 p.p. down year-over-year;
Allowance for doubtful accounts (PCLD) of 1.7% of revenue from energy billing in 2Q14, 0.8 p.p.
down on PCLD of 2.5% recorded in 2Q13;
DEC e FEC, in the last 12 months, increase 26.21% and 16.91%, respectively, in comparation with
the same period of the previous year;
OPERATING
Net revenue, excluding construction revenue, grew by 1.4% year-over-year, totaling R$ 1,601.5
million;
Consolidated EBITDA in 2Q14 of R$239.3 million, 13.9% down on 2Q13;
Net income for 2Q14 totaled R$15.3 million, compared to a net income of R$58.2 million in 2Q13; Consolidated net debt of R$5,229.6 million, 2.1% down on the same quarter last year;
FINANCIAL
CDE FUNDS
CDE (Energy Development Account) transfer of funds to distribution companies to settle energy
purchase commitments with CCEE (Electricity Chamber of Trade);
Amount of R$224.3 million in April and May was recorded in profit or loss as cost reduction with
Portion A;
Total transfer of R$1,385 million in the first half, reducing its period tariff deficit to R$250 million, whichwill be passed on to consumers in the next tariff adjustment through the CVA.
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Energy ConsumptionDistributionQuarter
1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process.the billed energy of the free customer CSN has been considered back.
TOTAL MARKET (GWh)
Industrial
captive5.3%
Free
20.3%
Otherscaptives
14.0%
Commercialcaptive27.6%
Residentialcaptive32.8%
2Q12
Q11
2Q13 2Q14
+3.0%
6,304
5,754
23.2C
23.1C
5,669
6,495
23.5C
22.7C
+4.6%
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Energy ConsumptionDistributionAccumulated
1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process.the billed energy of the free customer CSN has been considered back.
TOTAL MARKET (GWh)
Industrial
captive5.1%
Free
18.6%
Otherscaptives
13.6%
Commercialcaptive27.6%
Residentialcaptive35.2%
+5.5%
1H12
H11
+5.1%
1H13 1H14
13,145
11,934
25.7C
11,960
13,869
25.2C
25.1C 25.1C
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Total Market
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL
2Q13 2Q14
ELECTRICITY CONSUMPTION (GWh)TOTAL MARKET QUARTER
2Q13 2Q14
2Q13 2Q14
2Q13 2Q14
2Q13 2Q14
FREECAPTIVE
4,954
5,176
6,304
1,349
1,319
+2.3%
893
910
942
49
54
964
+2.8%
1,962
215
224
2,017
1,428
1,085 1,041
1,385
+8.0%
1,972
2,128
-3.0%
1,748
1,793
+3.0%
342 344
6,495
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Total Market
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL
1H13 1H14
ELECTRICITY CONSUMPTION (GWh)TOTAL MARKET - ACCUMULATED
1H13 1H14
1H13 1H14
1H13 1H14
1H13 1H14
FREECAPTIVE
5,176
893
910
1,748
342 344
+5.5%
10,526
11,292
13,145
2,618
2,576
13,869
+4.2%
1,806
1,880
1,909
103
109
1,990
5.7%
4,055
430
457
4,284
701 705
2,787
2,086 2,010
2,715
+11.1%
4,395
4,880
-2.6%
3,625
3,827
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Collection
PCLD/Gross Revenue
(Billed Sales) - Quarter
COLLECTION RATE BY SEGMENTQuarter
2Q13 2Q14
103.5%
104.5%
105.1%
101.8%
102.9%
108.1%
Total
Retail
Large Clients
Public Sector
104.2%
97.3%
2Q12 2Q1 4Q13
3.4%
2.5%
1.7%
-0.8 p.p.
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2 9 2 2 2 2 2 3
Loss Prevention
LOSS (12 MONTHS)
% Non-technical
losses/ LV Market
Non-technical losses GWh
Technical losses GWh
Jun/13
Sep/13 Mar/14
Jun/14
ec/13
INSTALLED METERS
(Thousand Units)
Communities
Without Communities
2010
2011 2013012
115
Jun/14
43.7%
5,738
2,614
8,552
44.2%
5,972
2,843
8,352
41.9%
5,953
2,629
8,815
5,905
2,647
8,582
- 2.3 p.p.
42.2%
42.4%
5,955
2,793
8,748
351
30
79
102
227
432
272
330
7
122
116
509
197
393
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Losses Combat ActionsAPZ Results
By June. the program coverd 505 thousand customers in 29 APZs. which ones 22 hadthe results calculated:
* Reflects the results accumulated until mar/14 since the begining of the implementation of each APZ. Subtitle: N = N / Y = Yes.
-30.0 p.p
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Net Revenue
Industrial
(Captive)
5.9%
NET REVENUE (R$MN) Generation7.5%
Distribution
80.5%**
NET REVENUE BY SEGMENT (2Q14)*
Commercialization
12.0%
* Eliminations not considered
** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (2Q14)
Commercial
(Captive)
42.6%
Others (Captive)
12.2%
Network Use (TUSD)
(Free + Concessionaires)
7.8%
Residential (Captive)
31.5%
Construction Revenue
Revenue w/out construction
revenue
+3.5%
1.580
1.602
378
333
1,755
3,677
2Q14
+1.4%
1H13
3.344
3.720
+11.2%
214
76
1,816
4,098
2Q13 1H14
1,580
1,602
3,344
3,720
+11.5%
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Operating Costs and Expenses
Manageable
(distribution):R 309
(18.8%)
Generation and
Commercialization:R 249
(15.2%)
Non manageable
(distribution**):R 1,084
(66.1%)
* Eliminations not considered** Construction revenue not considered
DISTRIBUTION PMSO COSTS (R$MN)COSTS (R$MN)*2Q14
COSTS (R$MN)*
1H14Non manageable
(distribution
**
):R 2,293
(66.0%)
Generation and
Commercialization:
R 506
(14.6%)
Manageable
(distribution):
R 677
(19.5%)
R$ MN 2Q13 2Q14 Var. 1H13 1H14 Var.
PMSO (212.0) (207.1) -2.3% (412.7) (412.3) -0.1%
Provisions (66.6) (14.1) -78.8% (111.8) (79.4) -29.0%
PCLD (48.4) (36.1) -25.5% (77.4) (61.4) -20.8%
Contingencies (18.2) 21.9 - (34.4) (18.0) -47.5%
Depreciation (83.8) (86.2) 2.8% (164.5) (171.6) 4.3%
Other operational/revenues expenses
(5.7) (1.2) -79.5% (12.9) (13.3) 2.6%
Total (368.0) (308.5) -16.2% (701.9) (676.6) -3.6%
368
309
-16.2%702
677
1H14H13
-3.6%
2Q14Q13
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Tarif Deficit
12
Tarif Deficit Balance
DE Fund
Total
Aporte CDE -1H14 (R MN)
Decree8203
(jan/14)
SPOT market Involuntary Exposure 1,238
Availability contracts with thermal plants 299
Hydrological Risk 39
A-1 Auction Contract 30
A-0 Auction Contract 28
TOTAL 1,635
(250)
(1,635)
1,385
The remaining balance of R$ 250 millions refers to the portion of items not covered by the decrees, with an emphasis on:
availability contracts in January , energy contracted through the A-1 auction, a portion of the energy contracted in the A-0
auction, hydrological risk, revenue from hydrological risk deducted from the January and February transfers and from the
cut in the April transfer
The exposure to the spot Market and its high prices, which reflect the low levels of hydroplant reservoirs and the dispatch of thermal plants, resulted in an expressive deficit for
distributors
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EBITDAEBITDA BY SEGMENT (R$ MN)
Generation and Commercialization
Distribution
56.0%
244
-12.5%
279
45.8%
54.2%
37.4%
62.6%
2Q13 2Q14 1H13 1H14
63.3%
36.7%
44.7%
+9.9%
636
55.3%
699 Consolidated EBITDA(R$ MN)
2Q14 2Q13 Var. 1H14 1H13 Var.
Distribution 132.3 174.5 -24.2% 387.1 402.6 -3.9%
EBITDA Margin (%) 9.2% 12.5% -3.3 p.p. 12.2% 13.5% -1.3 p.p.
Generation 88.0 100.1 -12.1% 270.8 219.4 23.4%
EBITDA Margin (%) 66.0% 75.9% -9.9 p.p. 78.6% 79.1% -0.6 p.p.
Commercialization 23.9 4.4 449.3% 41.5 14.3 190.6%
EBITDA Margin (%) 11.1% 2.8% 8.3 p.p. 9.2% 4.6% 4.6 p.p.
Others and eliminations (4.9) (1.1) 360.2% (7.1) (3.3) 118.9%
Total 239.3 277.9 -13.9% 633.1 692.3 9.3%
EBITDA Margins (%) 14.9% 17.6% -2.7 p.p. 18.9% 18.6% -0.3 p.p.
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EBITDA
EBITDA
2Q13
EBITDA
2Q14
Net
Revenue
Non-
Manageable
Costs
Manageable
Costs
(PMSO)
Provisions
egulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted
EBITDA
2Q13
Adjusted
EBITDA
2Q14
Adjusted EBITDA 2Q13 / 2Q14(R$ MN)
Other
operacional
revenues
Equity
Pikup
- 9.4%
- 13.9%
397
278
(110)(2)
(4)
239
360
11922
3 52
120
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EBITDA
EBITDA
1H13
EBITDA
1H14
Net
Revenue
Non-
Manageable
Costs
Manageable
Costs
(PMSO)
Provisions
egulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted
EBITDA
1H13
Adjusted
EBITDA
1H14
Adjusted EBITDA 1H13 / 1H14(R$ MN)
Other
operacional
revenues
Equity
Pikup
- 6.9%
+9.3%
854
220
633
376 (328)
(10) (6) 32 (6)
692
102
794
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Net Income
2Q13
2Q14
BITDA Financial
Result
Taxes Depreciation
ADJUSTED NET INCOME2Q13 / 2Q14 (R$ MN)
Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted Net
Income
2Q13
Adjusted Net
Income
2Q14
58
95
- 73.8%
-30.8%
137
(39)
(16)(3)
15
79
15
79
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Net Income
1H13
1H14
BITDA Financial
Result
Taxes Depreciation
ADJUSTED NET INCOME1H13 / 1H14 (R$ MN)
Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted Net
Income
1H13
Adjusted Net
Income
1H14
(16) (3)
+ 43.1%
- 6.8%
282
145
137
59
44 (36) (8)
196
67
263
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Indebtedness
Average Term: 3.9 years
AMORTIZATION SCHEDULE* (R$ MN)
Nominal Cost Real Cost
NET DEBT
*ConsideringHedge* Principal only
COST OF DEBT
2012
011
2Q14
013
Net Debt / EBITDA
2.24%
8.21%
3.87%
10.49%
4.25%
11.03% 9.68%
3.55%
TJLP
13.3%
CDI
74.5%
IPCA
11.0%
Others
3.7%
U /Euro
-2.7%
408
781
1,031
832
1,166
717
729
476
573
4,056.15,341.8 5,229.6
Jun/13
2.90
2.99
Jun/14ar/14
2.62
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Investments
CAPEX (R MN)
CAPEX BREAKDOWN
(R MN)
1H14
Generation
8.4
Administration
12.2
Others
5.0
Develop. of
Distribution
System
207.5
Losses
Combat
119.7
Investments in Electric Assets (Distribution)
Commerc./
Energy
Eficiency
5.0
519
2010
701
2011
2012
797
694
103
519
182
775
154
713
132
845
+9.5%
2013
327
1H13
1H14
54
26
273
332
358
929
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