Presentation to investors 5th issue of debentures

Energisa Group
Investors Presentation
5th Issuance of Debentures Energisa S.A
BRL 400,000,000.00
Lead Manager
g
2012, May
1
Disclaimer
This material was prepared solely as support for presentations related to the 5th Issue of Debentures, unsecured, NonConvertible, up to two tranches of Energisa SA ("Energisa" or "Issuer", "Debentures" and "Offer" respectively) based on
information provided by Energisa, and does not imply, by the Bank BTG Pactual SA ("Lead Manager") no representation or
warranty
t regarding
di the
th information
i f
ti contained
t i d herein
h i or judgment
j d
t on the
th quality
lit off the
th Issuer
I
or the
th Offer
Off or the
th securities
iti
related to this material ("Debentures"). The Lead Manager and their representatives are not responsible for any losses that
may result from investment decisions based on the information contained herein.
Potential investors should read the Preliminary Prospectus Energisa Debentures ("Preliminary
( Preliminary Prospectus")
Prospectus ), in particular the
section "Risk Factors Relating to the Offer", before deciding to invest in the Debentures, as well as use other elements they
deem necessary to evaluate the possible investment. Any decision to invest based on the information contained in the
Preliminary Prospectus shall consider the detailed information about Energisa, activities, financial situation and the risks
inherent to the activities of Energisa presented in the “Formulário de Referência” of the Issuer filed with the CVM, as well
as its ffinanciall statements.
The Preliminary Prospectus may be obtained from Energisa, CVM, Anbima, BMF & Bovespa, CETIP and the Lead Manager.
2
Company’s Presentation
SECTION 1 Energisa Group and the Electricity Distribution Industry
4
SECTION 2 The Company
9
SECTION 3 Financial Aspects
14
SECTION 4 Terms and Conditions of the Offer
21
3
1. Energisa
g
Group
p
and Electricity Distribution Industry
4
4
Energisa Group
and the Power Distribution Sector
Energisa Overview
Geographic Footprint
y Over 107 years of history in the electricity sector
y Is registered in the stock exchange since 1907
y Operational Target:
Energisa Paraiba
Energisa Borborema
– Distribution of electricity
– Power generation through renewable sources
– Energy trading and related services of generation,
transmission and distribution
Energisa Sergipe
y Highlights:
– 5 concessions of electricity distribution
– 2 Services Companies
Energisa Nova Friburgo
– 17 Generation Projects (453 MW)
Energisa Minas Gerais
– Concession Area: 91,180 Km2
– Population Served: 6.7 million
ƒ 3.5 % Brasil
ƒ 10.4 % Northeast
Dis Cos
(1)
SHPs
Wind Farms
Biomass(1)
In the final stages of acquisition
5
Ownership Structure
Gipar / Itacatu
B t lh Family
Botelho
F il
FIP da Serra
Free Float
CS = 5%
TC = 12%
VS = 22%
TC = 53%
VS = 73%
TC= 35%
VS = Voting Shares / TC= Total Capital
TC(1) = 100%
Distribution
Energisa
Minas
Gerais
Energisa
Sergipe
gp
Energisa
Nova
Friburgo
Services
Energisa
Paraíba
Energisa
Comercializadora
Energisa
Soluções
ç
Energisa
Borborema
(1) Except for two SPCs Biomass in final stage of
Generation
Geração
Rio
G
Grande
d
PCH
Cristina
PCH Zé
Tunin
Eólicas
RN
Eólicas
BA
Biomassa
SP e MS
acquisition (60 MW), where Energisa will
possess 85% of the shares
6
Power Distribution Sector
Strong Growth and Consumption Base
Consumption (GWh)
9.262
7 971
7.971
Customers Base (thousand)
6.271
CAGR: 4,3%
6.593
7.328
7.133
2.590
2,453
2 482
2,482
2,338
1.700
1.805
2.129
2.628
2.234
356
2008
2009
2010
2011
1T12
Consumidor Livre e Outros
Mercado Próprio
2 253
2,253
Revenue by Segment of Consumers Energy
2,167
Industry
14.8%
2008
2009
2010
2011
1T12
y Relevant and sustainable growth, characteristic of
regions with strong development;
y More than 142 thousands consumers connected by the
program
g
“ Light ffor All” until
til 1Q12
y Evolution of the consumer base ( +5.1% over 1Q11)
Residential
45.7%
Commercial
22.8%
Others
12.6%
Rural
4.1%
Residential and commercial segments provide
the highest EBITDA margin
7
Power Distribution Sector
Reduction of losses and Delinquency
Consolidated Energy Losses (%)
20,4
Consolidated Delinquency (% da Gross Revenue)
5.2
47
4.7
4.1
3.9
3.2
20,2
18,1
14,4
14,5
16,3
13,0
12,5
13,7
13,4
5,1
5,5
5,2
4,7
,
4,2
11,1
28
2,8
10,8
2,5
2
5
9,3
8,9
8,2
8,3
8,2
8,4
8,3
2006
2007
2008
2009
2010
2011
1T12
tecnnical
Técnica
2.8
13,4
17,5
Comercial
commercial
Energisa
Energisa Paraíba
Paraíba
2.8
2.4
2.0
2.0
y Except Energisa Paraíba (EPB), none of the distribution
companies within the group operates with losses higher
than 10.2%;;
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
y Focus on managerial actions aiming the continuous
reduction of electricity losses (improvement of 1.03
percentage point in the 12 months ended in March 2012)
8
2. The Company
p y
9
9
Competitve Advantages / Strenghts
Hight
i h quality
li assets:
Strong operational efficiency and
financial strength
Social Appeal:
besides accomplishing its
social responsibilities,
conducts preservation
efforts within its areas
of operation
Experienced
management
Wide experience in the
energy sector in
generation and
g
distribution
Diversified
consumers base:
Distribution concessions
are located in several
states (SE,
(SE PB,
PB MG and
RJ)
Location associated with
growth:
Concessions are located in areas
of accelerated growth
10
High class assets
Distribuition Assets
E Paraíba
E.
E Sergipe
E.
E Minas Gerais
E.
E Borborema
E.
E Nova Friburgo
E.
1.167
625
394
172
94
Energy Distributed (GWh)
3.677,6
3.130,2
1.434,4
632,2
318,0
Gross Revenues (BRL million)
1.418,2
942,9
634,9
217,8
163,3
15/01/2031
23/12/2027
07/07/2015
04/02/2030
07/07/2015
DEC
28,96
22,29
9,80
14,64
13,37
FEC
15,79
14,57
8,66
11,85
10,33
Energy Losses (LTM)
13,43
10,11
8,86
7,62
5,50
Consumers (´000s)
Concession expiration
Generation Assets
SHP Cristina
Wind Farm
Renascenças e
Ventos de São
Miguel
Wind Farm
Sobradinho
(projeto)
UTEs Santa
Cândida e
Vista
Alegre(1)
UTEs Santa
Cândida e
Vista Alegre
(expansão) (1)
MG
MG
RN
BA
SP e MS
SP e MS
31,2MW
8MW
3,8MW
150MW
89,7MW
60MW
110MW
153GWh
43GWh
17,9GWh
614GWh
375GWh
216GWh
519GWh
Operating
p
g
Feb/13
Operating
p
g
Sep/13
p
-
Operating
p
g
Apr/14 and
Apr/15
SHPs do
Rio Grande
SHP Zé Tunin
RJ
Installed Capacity
Total annual
exportable energy
Location
Beggining
gg
g of operation
p
(1)
Project in final stage of acquisition.
11
High class assets (cont.)
Installed Capacity - Generation (MWh)
90
453
110
150
8
60
35
SHPs Caju,
Caju
UTE'ss
UTE
Santo Antônio, Santa Cândida
São Sebastião do
and Vista
Alto e Cristina
Alegre(2)
Unit
Type
Start-Up
% Contracted
(1)
(2)
Designed
Renascença I,
II, III, IV e V.S.
Miguel
Zé Tunin
Expansion Santa
Cândida e
Vista Alegre(2)
Sobradinho(1)
SHP
Biomass
Wind
F
Farm
Sep/13
Feb/13
Apr/14 e
Apr/15
-
93%
100%
SHP
UTE
BiomasS
Wind
Farm
In
operation
In
operation
100%
100%
The beginning of construction of Sobradinho is to be defined
In final stages of acquisition.
UTE
Contracted
Under Development
12
Growth Strategy
Becomes the best and
most profitable group
of distribution
companies within its
regions
Reach 500 MW of
power generation
ti
through
renewable
sources, under
construction
t ti or
contracted until
2017
Increase the
segment of
services,,
becoming
nationally
recognized as a
provider of
p
solutions in the
energy area for
the quality,
agility
g y and
innovation
Transform the
energy trading
company in one of
the five most
profitable traders
in energy sector,
constituting a
portfolio of more
p
than 130 MW
13
3. Financial Highlights
g g
14
14
Consolidated Financial Highlights
Adjusted EBITDA¹(R$ mm) and Adjusted
EBITDA Margin(%)
585
Net Revenues (R$ mm)
29%
591
553
26%
24%
25%
23%
CAGR: 10,2%
162
130
2.427
2.154
2009
1.997
2010
2011
1T11
1T12
Consolidated Net Income
13 5%
13,5%
277
13,9%
576
654
195
9,0%
212
10,4%
8,7%
6,6%
38
2009
(1)
2010
2011
1T11
1T12
2009
2010
2011
1T11
68
1T12
Adjusted EBITDA: Operating result + Depreciation + Late Charge Revenue Fee.
15
Adjusted EBITDA Breakdown (R$ mm)
46.3
1T2012
72.6
17.5
3.7
7.7
11%
2%
5%
14.5
162.3
9%
29%
100%
45%
EPB
LTM – 1T12
ESE
214.1
260 9
260.9
EMG
ENF
EBO
Outros
Energisa
Consol.
83.3
16.1
29.6
19.4
623.4
3%
5%
13%
3%
34%
100%
42%
EPB
ESE
EMG
ENF
EBO
Outros
Energisa
Consol.
16
Consolidated Financial Highlights (cont.)
Net Debt/
D b / Adj
Adjusted
d EBITDA
B DA (1)
2,4x
2,7x
2,5x
2,1x
1,9x
2011
1T12
Consolidated Net Debt (R$ mm)
1.603
1.563
1.306
1,551
2010
2 077
2,077
With Perpetual
2 061
2,061
Withthout perpétuo
Debt Exposure
Cash
319
274
276
(564)
(747)
(774)
2010
2011(2)
Short Term Debt
1Q12(2)
Fixed
Interest
14,9%
TJLP
6,2%
IPCA
2,1%
CDI
39,1%
Due Term
USD(3)
Swapped
(1)
(2)
(3)
(4)
Adjusted EBITDA: Operating result + Depreciation + Late Charge Revenue Fee.
Fee
Does the Perpetual Bond.
Interest + Principal Swapped to BRL up to its maturity.
Perpetual Bonds: 50% Principal + Interest swapped to BRL up to June 2012.
USD(4)
16,0%
21 7%
21,7%
17
Consolidated Financial Highlights (Cont.)
Debt Profile
Financial Risk Management Policy
y Creation of the committee of management
of financial risks;
y Minimum cash policy (1);
Amortization Debt Schedule (R$mm)
y Investment policy of the cash position,
including
g counterparty
p y risk limits;
774
y Policy to maintain leverage in line with the
regulatory level, ensuring the maintenance
of the current rating level;
556
y Guidelines for dividend policy;
y Policy to diversify funding sources,
preserving an adequate duration of the
consolidated debt;
477
236
240
209
y Policy to limit and protect bonds
denominated in foreign currencies; and
y Policy to manage derivatives and limit losses
163
51
Mar/2012
2012
2013
Cash
2014
2015
2016
2017 Após 2017
Debt
(1) Minimum cash equal to (i) 30 days of last year gross revenues, (ii) 50% Adjusted EBITDA last year, or (iii) cash sufficient to achieve the level of EBITDA / Net
Debt Short-term greater than 1.25 x
18
Investments
First quarter of 2012 by segment
Planned investments (R$ mm)
672
Distribution
75.4%
Generation
21.3%
Other
3 3%
3.3%
13
391
366
4
377
5
169
268
210
203
2012
2013
2014
Generation
Services & others
Distribution
Amount: R$ 93.5 million, an increase of
30.4% compared to 1Q11
580
R$ 1,629 million investments in the next
three years (R$ 927 million in renewable
energy generation)
19
Dividend Policy
9
The policy established by the Board of Directors for the next three years, until the growth opportunities are
defined and observed the maintenance of the ratings, is to distribute up to 50% of the net income, while the
holding company is capitalized with maximum dividends from their subsidiaries.
Dividend Payout % (ESA)
Dividends received from subsidiaries
55%
50%
48%
50%
49%
Dividends
2007
2008
2009
2010
2011
EMG
91
34
28
52
34
ENF
7
4
14
9
6
ESE
42
62
27
29
40
EPB
29
64
200
81
94
EBO
10
18
11
14
12
ESO
19
-
1
1
1
ECOM
39
2
2
4
5
Others
-
-
-
-
2
Total
237
184
283
190
194
((BRL million)
ll o )
2007
Dividends 153
2008
57
2009
123
2010
97
2011
103
(R$ million)
9 Prudent dividends distribution in periods of increased investment
20
4. Terms and Conditions of the Offer
21
21
Terms and Conditions of the Offer
Issuer
Instrument
Energisa S.A.
5a Issuance of Debentures,no convertible into shares
Offer
ICVM 400
Species
Unsucured
Rating
Aa3 for Moody’s
Total Volume
BRL 400 million
million, can be increased up to BRL 540 million
Unit Amount
BRL 10.000,00 (Ten thousand)
Number of Debentures
40.000, reaching 54,000 debentures
Issuance Date
July 15, 2012
Number of Series
Up to two series
Maturity
1st Serie: 5 years, due in July 15, 2017
2ndd Serie:
S i 7 years, maturing
i iin July
l 15, 20
2019
9
Amortization
1st Serie: Two equal installments, on the 4th and 5th year
2nd Serie: Two equal installments, on the 6th and 7th year
g of the
Remuneration ceiling
bookbuilding
Series 1st : CDI + 1.30%
2nd Series : NTNB 2018 + 155 bps
22
Terms and Conditions of the Offer
R
Remuneration
ti P
Paymentt
1st Serie: Semiannuallyy
2nd Serie: Annually
i)
Financial Covenants
Trading Environment
Estimated Date of Bookbuilding
Estimated Date of Settlement
Use of proceeds
Underwriter and
Paying Agent
Trustee
Ratio of Net Debt and Adjusted EBITDA on a consolidated basis less than or
equal to 3.85 by December 2014 (including) and less than or equal to 3.5 from
December 2014 (exclusive) until maturity
ii) Adjusted EBITDA / net financial expenses greater than or equal to 2.5
Primary: SDT (Cetip) and DDA (BM & F Bovespa)
Secondary: SDN (Cetip) and BovespaFix
June 27, 2012
Series 1st July 16, 2012
2nd Series July 17, 2012
Finance part of the investment plan of the Issuer
Banco Itaú Unibanco S.A and Itaú Corretora
GDC Partners DTVM Fiduciary Services LTDA
23
Contact the Coordinator
For more information, please contact the Lead Manager:
L dM
Lead
Manager
Cristiano Cury 55 11 3383 2659
Rafael Cotta 55 11 3383 2099
Bruno Korkes 55 11 3383 2190
Marcos Xavier 55 11 3383 2819
24
Company Contats
Maurício
í
Perez Botelho
CFO and IR Officer
E-mail: [email protected]
Cláudio
á
Brandão Silveira
Corporate Finance Director
E-mail: [email protected]
João
ã Gabriel
G b i l Ratton
R
Structured Finance Manager
E-mail: [email protected]
Rio de
Ri
d Janeiro
J
i (RJ):
(RJ) Av.
A Pasteur
P
110 / 6º andar
d
Tel.: (21) 2122-6904
Fax.: (21) 2122-6931
IInternet: www.energisa.com.br
i
b
E-mail: [email protected]
25