2q09 results
TRANSCRIPT
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EDP Energias do Brasil
2Q09 Results
July 30th, 2009
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This presentation may include forward-looking statements of future events or results according to regulations of the Brazilian and international securities and exchange commissions. These statements are based on certain assumptions and analysis by the company that reflect its experience, the economic environment and future market conditions and expected events, many of which are beyond the control of the company. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, Brazilian and international economic conditions, technology, financial strategy, public service industry developments, hydrological conditions, financial market conditions, uncertainty of the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the actual results of the company may be significantly different from those shown or implicit in the statement of expectations about future events or results.
The information and opinions contained in this presentation should not be understood as a recommendation to potential investors and no investment decision is to be based on the veracity, current events or completeness of this information or these opinions. No advisors to the company or parties related to them or their representatives shall have any responsibility for whatever losses that may result from the use or contents of this presentation.
This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the company’s business. These statements include projections of economic growth and energy demand and supply, as well as information about the competitive position, the regulatory environment, potential opportunities for growth and other matters. Several factors may adversely affect the estimates and assumptions on which these statements are based.
Disclaimer
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Highlights
Energy volume sold by the generation business totaled 1,846 GWh, 29% up on 2Q08 as a result of the asset swap operation;
Unveiling of full commercial operations at Santa Fé SHP;
Commercialized energy reported record sales: volume +15% in 2Q09 vs. 2Q08;
Net Revenue fell 1% due to the elimination of Enersul figures;
Manageable expenses down 12%, dropping for the sixth quarter in a row;
Divestment of ESC 90: positive impact of R$121 million on the 2Q09 result;
Approval and signature for long-term BNDES and IDB financing for Pecém I;
Issuance of R$230 million in promissory notes by Bandeirante;
Launch of the campaign “A Good Energy”;
Start-up in operation of Escelsa’s new commercial system.
2Q09: EBITDA of R$344 million and Net Income of R$21 3 million
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Consolidated Performance
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Consolidated Performance
1,128 1,116
2,337 2,233
2Q08 2Q09 1H08 1H09
-4%
Net Revenues Breakdown (2Q09)Net Revenues Breakdown (2Q09)Net Revenues (R$ million)Net Revenues (R$ million)
-1%
18%
66%
16%
Generation
Distribution
Commercialization
Generation↑29.3% in volume of energy sold; ↑4.2% in average price
DistributionElimination of Enersul; ↑0.6% in volume sold to final customers; ↑ of average tariffs
Commercialization↑14.5% in volume of commercialized energy; ↑14.1% in average price
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Opex (Manageable) Evolution (R$ million)Opex (Manageable) Evolution (R$ million)
249224 205 199 204 185 180
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Opex (R$ million)Opex (R$ million)
600 593
1,201 1,184205 180
428 364
2Q08 2Q09 1H08 1H09
Non-manageable expenditures Manageable expenditures*
Consolidated PerformanceOpex Breakdown (2Q09)Opex Breakdown (2Q09)
-4%
805 772
1,630 1,548Non-manageable
Expenses 70%
Manageable Expenses
30%
-12.2204,562179,564Total
+29.312,12815,670Others
-39.0416,653254,268Total
-64.8212,09174,704D&A.
+5.319,57020,598Provisions
-11.882,09572,417Third Party Services
-44.411,0906,164Material
-18.879,67964,715Personnel
Var.%2Q082Q09R$ ‘000
-5%
* Excluding D&A; 1H09 includes R$15.3 MM of “WIN” Program
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Net Income (R$ million) and Margin (%)Net Income (R$ million) and Margin (%)
Consolidated Performance
323 344
707 68428.7%
30.2%30.7%30.8%
2Q08 2Q09 1H08 1H09
EBITDA Breakdown (2Q09)EBITDA Breakdown (2Q09)EBITDA (R$ million) and Margin (%)EBITDA (R$ million) and Margin (%)
46%
51%
3%
Generation
Distribution
Commercialization
213167
330
0.5
7.1%
14.8%
2Q08 2Q09 1H08 1H09
Adjusted Net Income (R$ million) and Margin (%)Adjusted Net Income (R$ million) and Margin (%)
130213
296 33011.5%
12.7%14.8%
19.0%
2Q08 2Q09 1H08 1H09
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2009e 2010e 2011e
Capex
R$ 1.1 mm
-65.61.60.5Others
-4.4196.9188.2TOTAL
35.4
38.3
0.5
12.0
3.4
89.6
-
68.3
29.7
98.1
2Q09
-5.640.6Santa Fé
n.a.-Pecém
+35.366.2Generation
-0.83.5Enerpeixe
n.a.41.3Enersul
+40.948.5Escelsa
-58.21.1Lajeado / Investco
-43.221.1Energest
-24.339.3Bandeirante
-24.0129.1Distribution
Var.%2Q08R$ million
R$ 1.1 mm
R$ 0.84 mm
Others
Repowering
Distribution
Santa Fé
Pecém
Investment Plan regards more than R$ 3.0 billion fr om 2009 to 2011
41%
28%24%
18%
30%
6%
4%
34%
33%
4%
44%
31%
9
52%
38%
6%
4%
1,285
2.3482,402
1,741 (476) (147)
Gross DebtJun/09
Cash RegulatoryAssets
Net Debt Jun/09 Net Debt Mar/09
Short term Long term
476
754
335
477
724737
427
Cash.(jun/09)** 2009 2010 2011 2012 After 2012
DebtGross Debt Breakdown (Jun/09)Gross Debt Breakdown (Jun/09)Debt Evolution (R$ million)Debt Evolution (R$ million)
Floating Rates*
TJLP
US$
Net Debt (R$ million) and Net Debt/EBITDA* (x)Net Debt (R$ million) and Net Debt/EBITDA* (x)
3,026
Fixed Rates
* Includes CDI and IGP-M
Debt Maturity Schedule* (R$ million)Debt Maturity Schedule* (R$ million)
9032,131
1,680
2,390 2,348 2,402
1.8x 1.8x 1.8x 1.8x
1.4x
sep/08 dec/08 jun/09mar/09jun/08
(*) Values include principal + interest + results from hedge operations
(**) Also includes shares in treasury as of market price on June 30, 2009
(*) EBITDA of the last 12 months
10
251
737
476
427*255
170
60
Cash &MarketableSecurities(Jun/09)
Bridge LoanPecém
Credit Line Distribution Generation Total 2009
Debt
Short-Term Debt Breakdown (R$ million)Short-Term Debt Breakdown (R$ million)
Signing of long-term BNDES and IDB financing for Pe cém I
Amortization of R$86 million of Escelsa’s debentures
(*) Shares in treasury as of market price on June 30, 2009.
903
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Credit Limits
Approved Credit Lines (Jun-09)(R$ million)
-3,246643,246Total Credit Limits
2009126476BNDES (Santa Fé SHP)
20122700270*EIB
20092,00002,000BNDES – IDB (Porto do Pecém)
20149000900BNDES - CALC
Limit date to use the
resourceAvailableUsedTotal approvedInstitution
Besides these short term credit lines, EDP Energias do Brasil has other lower value pre-approved credit lines
* Credit line totaled EUR 90 million (EUR45 each distribution company)
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Generation
13
187226
406459
2Q08 2Q09 1H08 1H09
1,4281,846
2,966
3,737
2Q08 2Q09 1H08 1H09
EBITDA (R$ million) and Margin (%)EBITDA (R$ million) and Margin (%)
Generation’s PerformanceNet Revenue (R$ million)Net Revenue (R$ million)Volume (GWh)Volume (GWh)
166
294342
118
62.9%
72.4% 74.5%73.4%
2Q08 2Q09 1H08 1H09
Net Income (R$ million) and Margin (%)Net Income (R$ million) and Margin (%)
5840
164132
31.2%
40.5%
17.7%
28.6%
2Q08 2Q09 1H08 1H09
+29%
+26%
+21%
+13%
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With Santa Fé SHP fully operational, EDP Energias do Brasil’s installed capacity increased to 1,731 MW.
Installed Capacity (MW)
Projects concluded since the IPO
Projects in course
5025
2925**
360
2,116
516
452
20092009and2010
2011
Expect Start-up
2005 PeixeAngical
HPP
4th Engine Mascarenhas
São JoãoSHP
2007 Santa Fé
SHP
Repowering PecémTPP
2011Additional Capacity Lajeado
* Corresponds to EDP Energias do Brasil’s 45% stake in EDP Renováveis Brasil** Mascarenhas, Suíça, Rio Bonito
2008
Cenaee l
1.702
2009
653
1,043
516
452
653
6*
2009
385
1,731 1,731
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Distribution
16
5,624 5,108
11,08010,072
2Q08 2Q09 1H08 1H09
Distribution’s Performance (Bandeirante + Escelsa)
Volume Breakdown (2Q09)Volume Breakdown (2Q09)Volume (GWh)Volume (GWh)
-9%
-9%
Industrial19%
Free Customers
32%
Others*2%
Commercial14%
Residential23%
Others (captive)
7%
Rural3%
3,298 3,319
6,548 6,585
2Q08 2Q09 1H08 1H09
Captive Customers (GWh)Captive Customers (GWh)
+1%
+1%
2,2191,667
4,332
3,258
2Q08 2Q09 1H08 1H09
Free Customers (GWh)Free Customers (GWh)
-25%
-25%
* Supply + Own Consumption
17
773 829
1.5331.667
2Q08 2Q09 1H08 1H09
116139
248279
2Q08 2Q09 1H08 1H09
+20%
+13%
Distribution’s Performance (Bandeirante + Escelsa)Net Revenue (R$ million)Net Revenue (R$ million) Manageable Expenses (R$ million)Manageable Expenses (R$ million)
EBITDA (R$ million) and Margin (%)EBITDA (R$ million) and Margin (%) Net Income (R$ million) and Margin (%)Net Income (R$ million) and Margin (%)
+7%
+9%
167 187
311367
21.7%20.3%
22.0%22.6%
2Q08 2Q09 1H08 1H09
75 84
139166
9.7%9.0%
10.0%10.1%
2Q08 2Q09 1H08 1H09
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Losses
6.4% 6.6% 6.6% 6.7% 6.7%
5.7% 5.6% 5.4% 5.8% 5.7%
Technical Commercial
Total Losses (%)Total Losses (%)
12.1% 12.2% 12.0% 12.5% 12.4%
jun/08 sep/08 dec/08 jun/09mar/09
Opex and Capex: R$8.5 million in programs to controlling losses
37,000 inspections; removal of approximately 33,000 illegal hookups
Recovered Revenues: R$4.3 million
5.7% 5.5% 5.8% 5.5%
dec/07 dec/08 jun/09mar/09
6.0%
5.2%5.8% 5.9%
dec/07 dec/08 jun/09mar/09
5.8%5.4%
5.8% 5.7%
dec/07 dec/08 jun/09mar/09
BandeiranteBandeirante EscelsaEscelsa ENBR - ConsolidatedENBR - ConsolidatedCommercial Losses
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Commercialization
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1,551 1,875
3,122 3,459
457352
175239
2Q08 2Q09 1H08 1H09
Others Group Companies
163200
356 375
2Q08 2Q09 1H08 1H09
EBITDA (R$ million) and Margin (%)EBITDA (R$ million) and Margin (%)
Commercialization’s PerformanceNet Revenue (R$ million)Net Revenue (R$ million)Volume (GWh)Volume (GWh)
9
29
1211
6.8% 8.0%
3.3%4.7%
2Q08 2Q09 1H08 1H09
Net Income (R$ million) and Margin (%)Net Income (R$ million) and Margin (%)
8 7
20
9
5.1%5.6%
3.3%2.5%
2Q08 2Q09 1H08 1H09
+15%
+6%
+23%
+5%
1,7902,050
3,579 3,810
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Visit EDP Energias do Brasil Website
Site: www.edpbr.com.br
Maytê de Albuquerque
Cleverson Murakawa
Rogério Pacheco
Michelle Corda
E-mail: [email protected]
Phone: +5511 2185-5907
Investor Relations Department