Corporate Presentation p
Transcrição
Corporate Presentation p
Corporate p Presentation 2015 13/07 AES Corporation Global Company Natural g gas and coal fired thermal plants 36 GW installed capacity Providing services to over 100 million people 18.5 thousand employees 25.6 GW of installed capacity Over 8.3 GW of Renewable sources¹ AES Corp is present in 18 countries and 4 continents Distributed energy +60MW of solar PV² projects World leader in Energy Storage Total of 228 MW³ 1 – Includes hydro, wind, solar, energy storage, and biomass 2 - PV – Photovoltaic; 3 - Operating and under construction 1 AES Brasil SBU Represents 13% of 2014 AES Corp adjusted PTC¹ 2014 AES Corp adjusted PTC¹ 19% 2% 19% AES Brasil is one of AES Corp priority markets 24% 23% 13% US MCAC² Andes EMEA³ AES Corp is organized in Six Strategic Business Units (SBU), focused on key markets Brazil Asia 1 – Pre-tax contribution (a non-GAAP financial measure); 2 – Mexico, Central America and Caribbean; 3 – Europe, Middle-East and Africa 2 Leading position in the energy sector in Brazil Generation1 Market Share AES Tietê 2,658 MW Concession ends in 2029 ç AES Serviços AES Uruguaiana 640 MW Distribution2 Market Share 2% 13% AES Eletropaulo 20m people served 6.8m customers Concession ends in 2028 AES Sul 3.7m people served 1.3m customers Concession ends in 2027 87% 98% AES Brasil 1 – installed capacity as of 2015; 2 – Consumption (GWh) in 2014 (Source: ABRADEE) Other 3 History in Brazil Solid participation in distribution and generation businesses 1995 AES Brasil +19 years presence in Brazil Beginning of AES Uruguaiana construction 1998 AES Corp acquired AES Sul through privatization process 1997 Privatization of AES Eletropaulo by a consortium comprised by AES Corp and other local and international companies 2000 Privatization of AES Tietê 1999 AES Uruguaiana beginning of operation 2003 AES Corp increases its interest in AES Eletropaulo and AES Tietê Incorporation of Companhia Brasiliana de Energia and execution of shareholders agreement with BNDES 2001 2002 4 AES Brasil Mission, Vision and Values Mission Vision Values To promote well being and development ll b dd l with the safe, sustainable and reliable provision of energy solutions To be the leading power company in b h l d Brazil that safely provides sustainable, reliable and affordable energy • Put safety first f f •Act with integrity •Honor commitments •Strive for excellence •Have Have fun through work fun through work 5 5 AES Brasil environmental responsibility • Reservoirs repopulation • Reforesting, border and archeological management programs • Water quality monitoring • Recycling and waste disposal programs • Programs aiming to reduce CO2 emissions • Risk Management and identification of opportunities t iti related l t d tto climate li t change h 6 6 AES Brasil social responsibility • Access to reliable energy through social development • Education for efficient and safe use of electricity • Program which offer cultural and sports activities simulating citizenship practices • Sustainable partnership – commitment with sustainable bl development at AES Brasil’s value l chain 7 7 INVESTMENT PLAN 2015 - 2019 R$ 3.2 billion R$ 487 million 2015 1% 10% 89% 48 4.8 billion 2019 Generation R$ 1.1 billion R$ Distribution Services R$ 19 million 8 AES Brasil widely recognized AES Eletropaulo AES Tietê AES Brasil AES Sul AES Sul 9 National Interconnected System GENERATION Distribution Substation Thermal Plant Hydroelectric and Solar Plant Renewable Energy DISTRIBUTION Substation Transformer Substation Transformer TRANSMISSION COMERCIAL AND INDUSTRIAL CUSTOMERS RESIDENTIAL CUSTOMERS 10 Energy sector in Brazil: businesses segments Generation¹ Transmission² Distribution² • 4,127 power plants • 77 companies • 63 distribution companies • 138GW of installed capacity • High voltage transmission (>230 kV) • 342 TWh energy distributed • System based System based on hydro plants (66%) on hydro plants (66%) • 116,767 km lines (National 116 767 km lines (National • 190 million consumers 190 million consumers • Contracting environment: free and regulated markets Integrated System) • Regulated tariff (annually adjusted b i fl i ) by inflation) Sources: EPE, ANEEL, ONS, ABRADEE and Instituto Acende Brasil 1 – Refers to 2015 data; 2 – Refers to 2014 data • Annual tariff adjustment • Tariff reset every four or five years • Regulated contracting environment 11 Ownership Structure AES Corp C 50.00% + 1 share P 0.00% + 7 shares T 46.15% T 99.70% AES Sul C 99.99% T 99.99% BNDES Cia. Brasiliana de Energia C 99.99% T 99.70% AES Serviços C 50.00% - 1 share P 100.00% - 7 shares T 53.85% C 71.35% P 32.34% T 52.55% AES Tiête AES Uruguaiana ¹ C = Common Share P = Preferred Share T = Total T t l ¹ T 98.26% AES Elpa C 0.00% P 7.38% T 4.44% C 77 77.81% 81% P 0.00% T 30.97% AES Eletropaulo Free Float Others² Market Cap³ 16.1% 19.2% 56.3% 8.5% US$ 0.9 bi 24.2% 28.3% 39.5% 8.0% US$ 2.1 bi 1 – Parent, AES Corp and BNDES, have similar voting capital on each of the companies: approx 35,9% on AES Eletropaulo and 32,9% on AES Tietê; 2 – Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively; 3 – Base: 07/10/2015. FX rate 3.1897 BRL/1 USD 12 ● 3rd largest among private generation companies ● Concession expires in 2029 ● Market Cap: US$ 2.1 billion1 ● 9 hydroelectric plants and 3 SHP³ in São Paulo ● Installed capacity of 2,658 MW, physical guarantee2 of 1,278 , MWavg g ● Physical guarantee fully contracted with AES Eletropaulo through Dec, 2015 Brazil Água Vermelha (1.396 MW) Nova Avanhandava (347 MW) Promissão (264 MW) Ibitinga(132 MW) Bariri (143 MW) Barra Bonita (141 MW) Euclides de Cunha (109 MW) Caconde (80MW) Limoeiro (32 MW) Mogi‐Guaçu (7 MW) São Joaquim (3 MW) São José (4 MW) ● Dividend Yield: - 2014: 9.7% PN and 10.4% ON - Last 3 yyears avg: g 11.0% PN and 11.4% ON ● Investment grade (Moody’s): - National: Aa1 - International: Baa3 1 – Base: 07/10/2015. FX rate 3.1897 BRL/1 USD; 2 - Amount of energy allowed to be contracted in the long term; 3 – SHP – Small hydroelectric plant (installed capacity<30MW) 13 Brazil Brazil São Paulo ● Largest distribution company in Latin America ● 24 cities attended in São Paulo metropolitan area ● Concession contract expires in 2028 ● Market Cap: US$ 902 million¹ ● 16% of Brazil’s GDP² in its concession area ● 4,526 km2 concession area ● 46 thousand km of distribution and transmission lines ● 6.8 million customers ● 20 million people served ● 46 TWh distributed in 2014 ● 6,294 employees as of July 2015 Investment Grade: West, South, & ABC North & East 1 – Base: 07/10/2015; 2 - Source: IBGE, 2010. Fitch S&P Moody’s National A+ AA- Aa3 International BB BB Ba2 14 Brazil Rio Grande Do Sul Metropolitan Southern Border Valley Region Central Northern Border 1 – as of December/2014. 2 – 2010-2014 ● SAIDI and SAIFI 30% better than in 2009, within regulatory limits ● Operating costs 2% below the regulatory levels ● 118 cities attended in Rio Grande do Sul state ● Concession contract expires in 2027 ● 1.3 million customers ● 9 528 GWh sold in 2014 9,528 ● 99,512 km² concession area ● 3.7 million people served ● 1 951 direct employees¹ 1,951 ● Regional GDP growth of 3.2%² ● 63% dividend di id d payout in i 2012 ● R$ 401 million Ebitda in 2014 ● R$ 207 million invested in 2014 ● N ti National l iinvestment t t grade d (S&P) (S&P): A+ A 15 ● ● Beginning of commercial operations in 2000 Located in the State of Rio Grande do Sul – city of Uruguaiana ● ● Operations were suspended in 2008 due to lack of gas supply Initiated arbitration against YPF in Argentina – ICC¹ awarded the merits in favor of AES Uruguaiana in 2013 – Next and final phase refers to the damages calculation ● Emergency operations in 2013, 2014 and 2015 to supportt reservoirs i recovery in i B Brazil il Looking for long-term solution ● Fast Facts Combined cycle gas turbine (CCGT) 1 – International Chamber of Commerce Capacity (MW) 640 MW Authorization expiration 2027 16 • • Customer-focused Company, that provides electrical gy services energy Focus on offering integrated and high-added-value solutions to the electrical energy agents, industrial and commercial segments, based on AES Brasil strong p and know-how capabilities • Main Products - Commercial technical services - Consulting in energy efficiency - Construction and maintenance of substations and transmission lines - Commercial service: face-to-face service and debt collection - Affinities: insurance • • Over 5 y years of operation p 5 major clients – AES Eletropaulo, AES Sul, Level 3, Palácio do Governo do Estado de SP e Bridgestone 2 operational bases – cities of Barueri and São Paulo 110 vehicles 520 employees • • • 17 Corporate governance Key for the investment decision ● Operational and Investment Management Committee: robust capital allocation process ● Corporate policy of Integrated Risk Management¹ monthly assessed by Companies’ Executive Officers and quarterly by Fiscal committee and Board of Directors ● Corporate governance manual; audit committee installed ● High level of commitment, with monthly Board of Directors meetings ● Listed at BM&FBovespa: – ELPL3 and ELPL4: level II – GETI3 and GETI4: traditional market ● ISE Corporate Sustainability Index portfolio ● Tag along rights 1 – Based on COSO_ERM and Brazilian Corporate Governance Institute models 18 Investment focused on power plants modernization R$ $ 487 8 million ll o p projected ojected for o 2015-2019 0 5 0 9 206 186 175 155 139 100 80 2011 2012 2013 2014 2015 2016 2017 76 76 2018 2019 Power plants modernization process, aiming for continuous improvement in operational conditions and ensuring availability in its generation plants 20 Investments and Best Practices in Asset Management, g reduction translates into outages Unscheduled outages (%) ‐86% Best practices in asset management¹: 7.47 ● PAS 55 Certification C ifi i ● ISO 55001 Certification 7.23 2.03 ‐38% 1.59 1.68 1.04 1 31 1.31 0.24 0.35 0.28 0.79 0.25 2011 2012 2013 2014 Unscheduled Outage Rate Unscheduled Outage Rate 1.32 0.82 0.8 1.18 0.14 0.16 1Q14 1Q15 0.66 EFOF² EFOF 1 - AES Tietê was the first Latin American company to receive the certification from the British Standards Institute 2 – Equivalent Forced outage Factor - EFOF 21 Energy generation decrease reflects hydrology behavior in the country ● Generated energy (MW average1) ● 124% 127% 109% 92% 1,582 1,629 66% 1,392 61% 1,292 944 850 2011 2012 2013 Generation/Physical guarantee Hydropower plants are dispatched by ONS² Dispatch are also related to hydrological conditions: Low hydrology translates into low generation levels 2014 1Q14 1Q15 Generation ‐ MWavg 1 – Generated energy divided by the amount of hours; 2 – National System Operator 22 Critical hydrological scenario over the last 2 years Reservoirs (%) vs. Thermal Dispatch (GW avg avg²)) Historical Level of Brazilian Reservoirs (%) Max (%) 100 75 50 25 0 Jan Feb Mar Apr May Historical data since 2001 Historical data since 2001 Jun 2001 Jul 2012 Aug Sep 2013 Oct 2014 Nov 2015 Dec 90% 18 80% 16 70% 14 60% 12 50% 10 40% 8 30% 6 20% 4 10% 2 0% Average Annual Inflow: 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2001 2012 2013 2014 2015¹ 82% 87% 97% 81% 76% 2011 2012 Thermal Dispatch 1 – Data base: Jan-Jul/15 (as of July 10th); 2 – Generated energy divided by the amount of hours. 2013 2014 2015 Reservoir Levels 23 Energy Reallocation Mechanism (MRE) for f h hydrological d l i l risk i k sharing h i ● ● 1) Equilibrium (GE1 = PG2) 2A) Deficit (GE1 < PG2) Buy at MRE3 Buy at MRE3 Buy at Spot 2B) Deficit (GE1 < PG2) Buy at Spot Sell at MRE3 PG2 PG2 PG2 Key drivers for hydrological risk ● Generated Energy MRE Assured Energy Genco A Generated Energy MRE Assured Energy Genco A Generated Energy MRE Assured Energy Genco B 1 – GE: Generated Energy; 2 – PG: Physical Guarantee; 3 – Enough to cover variable O&M costs A physical guarantee (assured energy) is assigned to support contracts Energy gy dispatch p optimized by centralized system operator (ONS) on a tight pool ● Generated Energy (hydro) in the entire system (MRE) influenced by hydrology Spot Price - marginal cost influenced by hydrology and thermal dispatch 24 Tight g hydrology y gy and lower system y storage g capacity requires more flexible generation Thermo São Paulo (503MW) and Thermo Araraquara (579MW) Storage capacity (months) 6.2 57 5.7 5.4 4.6 2001 2005 2009 2013 Actual 4.4 2014 4.3 4.2 2015 2016 3.7 2019 Projection Current contracted energy is based on renewable (mainly Wind) and run-of-river hydro projects, projects which has reduced the energy storage capacity over the recent years. Source: ONS and AES 25 AES Brasil g growth p perspectives p Natural Gas Power Plants 1.5GW of dispatchable source ● 2 natural gas y combined cycle power plants ready to go to energy auctions ● Peak generation: short-term dispatch p solution ● Assessing M&A opportunities pp Renewable Energy Solar and Wind ● 30 MW solar project: located in Agua Vermelha HPP. Ready to go to energy auctions ● ~150MW solar project: under development ● Assessing M&A opportunities 26 Currently, AES Eletropaulo is our main client 2014 (%) – Clients per net revenue Billed energy (GWh) 16,728 615 15,797 1,141 15,075 1 932 1,932 1% 2,069 545 2,212 1,671 14% 227 11,138 2012 Eletropaulo 74% 11% 3,834 11,108 11,108 2013 2014 1 MRE Spot 3,584 538 541 176 3,633 483 274 136 2,329 2,740 2 740 1Q14 1Q15 Other Bilateral Contracts Other Bilateral Contracts 1 – Energy Reallocation Mechanism 554 Eletropaulo MRE 1 Spot Other Bilateral Contracts Other Bilateral Contracts 27 Contracting environment and d opportunities Regulated Market Existing Energy Auctions Free Market Bilateral contracts 2016 and beyond Spot Market Non contracted energy Via auctions organized b ffederal by d l government Via bilateral agreements Exposed to Spot M k price Market i Distribution companies Free Consumers¹ CCEE Settlement 1 – Free Consumers (Conventional free consumer - demand above 3MW and connected to a line of 69kV – and incentivized/ special free consumer - demand above 0.5MW) 28 Commercialization strategy gy post-2015 leveraging cash flow Our goal is to sell the major part of Company’ Compan ’ ph physical sical guarantee in the free market • Customized energy with global experience • Focus on long term contracts and off takers with a strong financial background aiming to ensure Company Company’ss cash flow • Practices and policies to ensure an adequate risk-profile assessment • Client Cli relationship l i hi actions i to promote AES Ti Tietê ê and d identify id if clients li needs d (i.e.: workshops, site visits, satisfaction surveys) • 458 visits promoted by the team to clients within 2013 and 2014 • We’ve already sold 83% of the available energy for 2016, 74% for 2017 and 47% for 2018 29 Commercialization strategy– C i Consistent evolution l i off client li portfolio f li Client portfolio1 (MWavg) Contracting level 100% 100% 100% 83% 74% 47% 24% 11% Average price R$/MWh3 194 206 206 138 139 145 138 137 210 943 1,268 1,268 1,034 1,106 918 585 301 138 2013 2014 2015 Energy available for sale2 2016 Price expectation in the range of R$190/MWh to range of R$190/MWh to R$200/MWh for 3 year contracts, to deliver in 2017 onwards From 2020, the price expectation is close to the Marginal Cost of g Expansion, around R$160/MWh 326 659 1,268 2017 Own energy already sold 2018 2019 2020 AES Eletropaulo PPA 1 – Includes energy contracts firmed until March 31st; 2 – Excludes losses and internal consumption; 3 – Average price (based on March/15) 30 Strong g and consistent annual results… Net revenue ((R$ million)) Ebitda ((R$ million)) 73% 65% 29% 3,205 +23% ‐23% 2,337 1,542 1,525 2,112 918 ‐34% ‐9% 2012 2013 2014 594 756 690 1Q14 1Q15 392 2012 2013 2014 1Q14 1Q15 Ebitda Margin 31 …and attractive returns Net income (R$ millions) ● 25% of minimum pay-out according to bylaws ‐29% 901 ● Distribution practice: quarterly basis 881 ● Average payout from 2008 to 2014: 112% ● Average A di dividends id d since i 2008 2008: R$ 836 449 ‐44% million per year¹ 358 200 pp in 1Q15: Q : ● Dividends approved R$ 122.4 million 2012 2013 2014 1 – from 2008 until 2014. 1Q14 1Q15 32 Low leverage g level… Debt amortization schedule Net debt (R$ billion) 1.9 800 1.2 05 0.5 0.4 1.1 0.3 0.5 2012 1.4 0.8 0.7 266 266 166 2013 2014 Net Debt/Adjusted Ebitda 1Q14 1Q15 2015 Net Debt 2017 2018 2019 2020 Amortization (R$ million) Covenants Debt Cost ● ● ● ● ● Net debt/Adjusted Ebitda2 ≤ 3.5x Adjusted Ebitda²/Financial Expenses ≥ 1.75x 1 75x 100 Average cost (% CDI)1 Average term (years) Effective rate 1Q14 1Q15 108% 2 75 2.75 12.7% 107% 1 1.93 93 14.2% 1 – Brazilian Interbank Interest Rate 2 – Adjusted Ebitda – (i) by the financial expenses/revenues and (ii) by the depreciation and amortization values to improve the reflection of the Company’s operational cash generation 33 …and consistent cash h flow fl R$ Million 1Q14 1Q15 2013 2014 Initial Cash 446.7 501.4 397 457 Operating Cash Flow 450.5 101.4 1,486 1,187 Investments (59.9) (37.1) (188) (173) (5 7) (5.7) (18 2) (18.2) (62) (94) 179.1 (120.0) 192 499 (399.6) (147.0) (457) (483) 164.3 ((221.0)) 971 936 (3.1) - (912) (892) 617.9 280.4 457 501 Net Financial Expenses Net Amortization Income Tax Free Cash Flow Dividends and IoE FINAL CASH CONSOLIDATED 34 Capital markets AES Tietê x IEE x Ibovespa¹ A B D C E F G H 120 I A Mar/2012: 4Q11 results above market expectations B Sept/2012: announcement of the Energy Reduction Program, through the PM 5794 C Feb/2013: High thermoelectric dispatch to conserve water in the reservoirs increase spot prices D Aug/2013: 2Q13 results above consensus due to higher-than-expected spot prices E Nov/2013: weak 3Q13 results affected by seasonality strategy 110 100 90 F 80 70 60 50 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 GETI4 Jun-13 GETI3 Sep-13 Dec-13 Mar-14 IEE IBOV Jun-14 Sep-14 Dec-14 Mar-15 Feb/2014: 4Q13 results slightly below consensus but market show high expectations on 2014 commercialization strategy G May/2014: 1Q14 EBITDA above expectation benefited from seasonality strategy H Jan/2015: Hydrology for rainy season worse than expected I Jun/2015: Corporate Restructuring announced TSR ● Market cap³: US$ 2.1 billion / R$ 6.6 billion ● (preferred shares)) BM&FBOVESPA: GETI3 ((common shares)) and GETI4 (p ● ADRs negotiated in US OTC Market: AESAY (common shares) and AESYY (preferred shares) 1 – Base 100: from 01/01/2012 to 06/19/2015; 2 – Total Shareholders’ Return; 3 – Index: 07/10/2015; 4 – Government program to reduce energy tariffs. 35 We have strong capabilities and business governance certification 1st ● ISO 55001 certification, Generation company in America ● Attractive returns to investors. investors Strong cash generation; Maximization of payout ● AES Tietê has been included in the ISE since 2007 ● Cost efficiency and optimized capital allocation ● Established risk management capability 36 2014 investments focused on system expansion and quality of service 2014 Investments focused on • Substation repowering Investments (R$ million) 831 35 809 and energization adding 309MVA to the system’s capacity 165 583 594 73 72 510 522 • 30 km k off new distribution lines • Maintenance in over 4.0 thousand km of the distribution grid • Regularization of 42 thousand connections 796 644 2012 2013 2014 Third party resources 2015 (e) -13% 136 16 120 118 17 101 1Q14 1Q15 Own resources 38 Consistent improvement in the quality li off service i since i 2011 ● SAIFI¹: 30% reduction in frequency q y of interruptions p in the last 4 years y ● SAIDI²: 14% reduction in hours of interruptions in the last 4 years SAIDI (hours) SAIFI (times) 6.93 6.87 6.65 8.68 ‐30% 5.45 2011 4.65 2012 8.67 8.49 6.36 ‐14% -27% 4.37 3.81 4.37 2013 2014 1Q14 Aneel Reference 8.29 10.36 3.21 1Q15 2011 SAIFI 1 - System Average Interruption Frequency Index; 2 - System Average Interruption Duration Index +8% 8.35 7.99 8.86 8.42 9.08 2012 2013 2014 1Q14 1Q15 Aneel Reference SAIDI 39 Efficiency in losses reduction over the last four years 11.5 10.5 10.1 9.7 -8% 10.5 6.5 10.2 10.0 9.7 10.1 9.3 6.1 6.1 6.1 6.1 4.0 4.1 3.9 3.6 4.0 3.3 2011 2012 2013 2014 1Q14 1Q15 Aneel Reference¹ Technical losses² 6.0 17.5% reduction in non-technical losses between the 1Q14 and 1Q15 and total losses within regulatory limits Non-technical losses 1 – Aneel benchmark with standardized values for the calendar year; 2 - Values estimated by the Company to Aneel reference for non-technical losses of the low voltage market 40 Large g and resilient concession area ● AES Eletropaulo p concession area consists of a mature market, representing approx. 16% of national GDP2 Total Market1 (GWh) 45,557 46,216 46,416 7 987 7,987 8 742 8,742 8 589 8,589 37,570 37,474 37,827 2012 2013 2014 Free Clients ● State of São Paulo’s GDP average growth of 2.0% p.a. for the last 5 years³ -3% 11,779 2,162 11,384 2,077 9,617 9,307 1Q14 1Q15 Captive Market 1 – Own consumption not included; 2 – Source: IBGE, 2012; 3 – base date: 2010-2014(e) 41 Consumption expansion is mostly in residential and commercial classes Consumption by class¹ Consumption by class 29% 36% 20% 34% 35% 21% 16% 9% Brazil Residential 1 – 1T 2015 (Own consumption not included) Source: EPE. AES Eletropaulo Commercial Industrial Other 42 Residential Class consumption in line with São Paulo state real income GWh R$ 4,500 2,400 2,300 2 200 2,200 4,000 2,100 2,000 3,500 1 900 1,900 1,800 3,000 1,700 1,600 , 2,500 2007 1,500 2008 2009 2010 Real Income (SP) 1 – base date: 2007-2014 2011 2012 Residential Consumption 2013 2014 Residential p consumption per client grew an average of 0.9% in the last 8 years¹ 43 Industrial class consumption tied to the industrial p production g growth in the state of São Paulo Industrial class X Industrial production in SP¹ Economic crisis -0,2 Economic crisis Economic recovery Economic crisis 0,0 ● Industrial d l consumption impacted by lower industrial production in Brazil ● Consumption C i focused f d on more resilient segment (residential and commercial classes) 0,2 Jul 07 Dec 07 Jul 08 Dec 08 Jul 09 Dec 09 Jul 10 Dec 10 Jul 11 Dec 11 Jul 12 Dec 12 Jul 13 Dec 13 Jul 14 Dec 14 Industrial Production in SP (% 12 months) Industrial consumption AES Eletropaulo (% 12 months) 1- São Paulo metropolitan area. Information until December 2014. 44 Net revenue 20% greater in 1Q15 mainly due to 2014 tariff readjustment Gross revenue (R$ million) 9,498 15,314 831 5,355 Costs (R$ million) 8,553 14,239 583 12,611 809 1,670 3,952 7,474 1,602 1,640 3,599 +38% 9,128 2012 9,704 8,203 2013 2014¹ +24% 4,978 3,620 425 944 136 2,115 1Q14² 499 1,819 118 6,883 7 896 7,896 2,280 408 5,834 2,542 1Q15 2012 2013 2014 2,834 509 1,872 2,325 1Q14 1Q15 Opex (ex‐construction costs) Regulatory Assets and Liabilities Deductions to Gross Revenue Construction Revenue Net Revenue (ex‐construction revenue) Energy costs and sector charges 1- Does not include the recognition of regulatory assets and liabilities (OCPC-08), in the total amount of R$ 270,5 million. 2 – Adjusted by regulatory assets and liabilities 45 9.3% reduction of the Adjusted Ebitda due to non recurrent expenses in 1Q15 Adj Adjusted d Ebitda Ebi d 1 (R$ million) illi ) 575 780 476 (166) Adjusted Net Income (Loss)2 (R$ $ million) 207 55 198 1,469 (132) (184) 294 248 1,138 758 -50% -9% 2012 47 2013 2014 104 323 293 1Q14 1Q15 52 ‐96 2012 Adjusted Ebitda Reported Ebitda 2013 2014 Adjusted Net Income (Loss) 1Q14 1Q15 Reported Net Income (Loss) 1 - EBITDA adjusted by expenses related to Pension Plan, regulatory assets and liabilities and possibly inexistent asset. 2 – Net income (loss) adjusted by regulatory assets and liabilities 46 Cost management projects generated R$ 1 billion¹ in savings until 2014 1st wave - 2007-2010 2nd wave – 2010-2012 ● Headcount reduction ● Benchmark approach ● Support functions centralization - shared services ● Process review and IT tools to increase performance ● Overhead reduction management and contracts renegotiation i i ● Development of strategic sourcing capability ● Leadership headcount reduced by 44% from 2008 to 2013 ● Currently operating at the same PMSO level as in 2007 while every quality indicators have improved ● Continuous overhead reduction ● Administrative and operational i l activities i ii centralized in a new site ● Real Estate Plan: sale of assets and maximization of occupancy rate 1 –Nominal total from 2007 until 2014 FY. Includes recurring and non-recurring reductions and the avoidance of cost increases 3rd wave – 2013-2015 ● Efficiency gains through process transformation and IT tools integration ● Cost management and innovation as part of the Company’s culture ● C Consider id the h totall cost of ownership for CAPEX/OPEX allocation decisions ● Sustainability driving value (e.g., ABS initiative with suppliers) 47 Operational cash flow generation R$ Million 1Q14 1Q15 2013 2014 974 974 909 814 11 323 1,480 724 (102) (167) (741) (501) Net Financial Expenses/Net Amortization (21) 139 (312) 211 Pension fund expenses (74) (47) (221) (166) Income Tax (45) (36) (25) (47) - - (51) 4 49 26 24 (61) (305) 215 208 (33) 669 1124 974 909 Initial Cash Operating cash generation Investments Disposal of assets Cash restricted and/or locked Free cash FINAL CASH CONSOLIDATED 48 Leverage level within financial covenants Net debt (R$ billion) 3.0 2.6 2.7 37 3.7 37 3.7 3.3 1Q14 2Q14 Net Debt (R$ billion) 2.7 2.5 3Q14 Average maturity of debt reaching 5.1 5 1 years Covenants within the limits established by debt contracts 3.5 3.4 4Q14 1Q15 Net Debt/Adjusted Ebitda¹ Debt Cost D bt C t Average cost (% CDI) Average term (years) Effective rate² 1 – EBITDA adjusted by expenses related to pension plan and regulatory assets and liabilities; 2 – Average rate during the period 1Q14 112% 6.0 13.0% 1Q15 113% 5.1 13.6% 49 Capital markets AES Eletropaulo x IEE x Ibovespa¹ 140 A B C D E F G H 120 100 80 I A Apr/2012: Aneel announced 3PTRC proposal (tariff cut of 8.81%) B Jul/2012: Aneel announced official 3PTRC (tariff cut of 9.33%) lowering dividend payout expectations C Dec/2012: Court deems Eletropaulo liable for Eletrobras lawsuit. Eletropaulo appealed the decision. D Feb/2013: 4Q12 EPS affected by energy costs and regulatory charges E Jul/2013: Low tariff adjustment due to payment of 2/3 of 3PTRC “Bubble” F Aug/2013: 2Q13 results above expectations. Efficiency in cost reduction. G Jul/2014: Tariff readjustment approved by ANEEL including 50% of “cable” restitution H May/15: 4th Tariff Reset Cycle preliminary numbers released I July/15: 4th Tariff Reset Cycle final numbers released 60 40 20 0 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 ELPL4 IEE IBOV ELPL4 TSR ● Market cap³: US$ 0.9 billion/R$ 2.9 billion ● BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares) ● ADRs at US OTC Market: EPUMY (preferred shares) 1 – Base 100: from 01/01/2012 to 07/04/2015; 2 – Electric Power Index; 3 – Index: 07/10/2015 50 We have strong g capabilities p and corporate governance ● AES Corporation and BNDES as major shareholders: long-standing reputation in the market ● Consumption focused on more resilient segment (residential /commercial market) ● 2015-2019 investment plan of R$ 3.2 billion mainly focused on customer services and better quality indicators ● Efficiency on recognizing investments on the RAB ● Deleveraging and improving capital structure 51 Brazilian Opportunities Brazilian Energy Matrix and perspectives Brazilian Energy Matrix¹ Governmental Expansion Plan 196 13% 21% 125 156 167 71 133 8 142 17 148 24 31 42 125 125 125 125 125 125 2014 2015 2016 2017 2018 2023 66% 2013 Hydro Renewable³ Thermal ● Energy matrix based on hydropower plants ● Thermal source is responsible for system reliability Additional Capacity by PDE² ● Current Installed Capacity Expansion based mainly on renewable and run-of-river hydropower plants 1 – ANEEL database (07/10/2015). 2 – Energy development plan (PDE 2013-2023); 3 – Includes Biomass, Wind and Solar sources 53 Appendix 54 Recovery of tariff realism De escriptions Time Tariff Flag Tariff Flag 2.0 Extraordinary Tariff Reset • In place since January, 1st 2015 • In place since March, 2nd 2015 • In place since March, 2nd 2015 • Reduce cash‐flow mismatch Reduce cash‐flow mismatch • Broaden application: Broaden application: • Cover additional costs: Cover additional costs: • To partially cover higher energy costs (thermal costs) – hydrological risk – CDE – involuntary exposure – Itaipu (tariff increase and dollar variation) – sector charges (ESS) sector charges (ESS) R Risks – A‐1 and Adjustment Auctions • Costs not fully covered • Higher bad debt and NTL¹ Higher bad debt and NTL¹ • Costs fully covered • Higher bad debt and NTL Higher bad debt and NTL • Higher bad debt and NTL Tariff in ncrease – thermal costs • ~11% at AES Eletropaulo residential tariff • ~9% at AES Eletropaulo residential tariff • 32% AES Eletropaulo average increase: • 26% residential tariff • 40% high voltage 40% high voltage 1 – Non-technical losses 55 Tariff methodology for distributors ● Energy Purchase Transmission Sector Charges Tariff Reset is applied each 4-5 years − AES Eletropaulo next Tariff Reset: Jul/2019; − AES Sul next Tariff Reset: Apr/2018 − Parcel A: costs are passed on Regulatory Opex (PMSO) through to the tariff − ● Parcel B: costs are set by ANEEL Annual Tariff Adjustment − X WACC Remuneration Asset Base Investment Remuneration Parcel A Costs − Non-manageable costs passed on through to the tariff − Incentives to reduce costs ● Regulatory Opex − ● X Depreciation Parcel A: costs are passed on Parcel B: costs are adjusted by IGPM +/- X Factor¹ Depreciation Remuneration on Special Obligations Regulatory Ebitda 1 – X Factor: index that capture productivity gains Efficient operating cost determined by ANEEL Remuneration Asset Base − through to the tariff − ● ● Prudent P d t investments i t t used d tto calculate l l t th the investment remuneration (applying WACC) and depreciation Special Obligations − Recognition of the opportunity cost of equity capital over third party investments Parcel A - Non-Manageable g costs Parcel B - Manageable costs 56 X Factor methodology X Factor = Pd + Q + T Definition Distribution productivity Quality of service Operational expenses trajectory Objective Capture productivity ggains Stimulate improvement of service quality q y Implement operational p j y expenses trajectory Application Defined at Tariff Reset, g considers the average productivity of the sector adjusted by market growth and p consumption variation Defined at each Tariff j , Readjustment, considers variation of SAIDI and SAIFI and comparative performance of discos. Includes commercial indexes Defined at Tariff Reset, makes the transitions to operational costs verified in the last 12 months to the one set in g the benchmarking models 57 4th Tariff Reset Cycle Parcel A + Financial Components Annual impact R$ million R$ million 13.96% R$ 1,936m Parcel B Parcel B 1 27% 1.27% R$ 176m R$ 176m Tariff Reset Effect 15.23% R$ 2,112m Energy CVA including FX rate variation associated with Itaipu CDE charge increase (loans and CDE share) CDE h i (l d CDE h ) Reduction of AES Tietê’s energy participation due to end of contract in Dec/15 Involuntary exposure in 2015 WACC of 8.09% Special Obligations remuneration Special Obligations remuneration Opex adjusted to match the concession area’s reality 58 Breaking down the Parcel B Remuneration (RAB) R$ 732m Net RAB of R$ 6.0 billion WACC of 8.09% Depreciation R$ 458m Gross RAB of R$ 12.2 billion Depreciation Rate of 3.75% Special Obligations Annuity (Other Assets) Operational Expenses Operational Expenses R$ 39m R$ 134m R$ 1 373m R$ 1,373m Remuneration of 3.34% Remuneration and depreciation of IT, vehicles and administrative assets Xt Factor of ‐2.37%; Inclusion of labor liabilities, São Paulo salaries and underground network Bad Debt R$ 198m 0.85% of bad debt, considering Tariff Flag revenues Oh R Other Revenues ‐ R$ 88m R$ 88 ~60% of non‐distribution revenues f d b Productivity Gains ‐ R$ 33m Xp Factor of 1.13% Parcel B R$ 2,812m 59 Ranking of distribution tariffs in Brazil Tariff excluding tax (R$/KWh) Boa Vista CPFL‐ Piratininga COELBA Ranking (out of 64) 0.290 1 0.362 7 0.388 13 CEAL 0.414 COELCE 0.418 CPFL‐Paulista 0.420 ELETROACRE 0.425 25 CELESC‐DIS 0.429 26 BANDEIRANTE 0.433 28 ELETROPAULO 0.436 29 RGE LIGHT AES‐SUL COPEL‐DIS 19 21 23 0.447 0.469 0.480 0.492 ELEKTRO 0.506 CEMIG‐D 0.510 Source: Aneel website. Tariffs as of July/2015. 33 42 45 50 54 56 60 AES distribution companies have been improving their service level performance over the years SAIDI ranking ki 1 6 7 4 10 15 13 6 12 21 SAIFI ranking1 3 10 18 15 2010 4 14 2011 3 City ranking State ranking 3 17 20 2009 PROCON ranking2 (Eletropaulo) 3 1 1 9 17 6 AES Eletropaulo 8 AES Sul 9 11 21 27 14 2012 2013 2014 2009 2010 2011 2012 2013 2014 1 – X Factor: index that capture productivity gains 1- Considers distribution companies with more than 500k customers; 2- PROCON ranks companies most claimed by costumers 61 61 Abradee’s¹ Ranking AES Eletropaulo 2007 14º 2008 2009 2010 2011 2012 2013 2014 8º 6º 9º 8º 5º 9º 8º 2008 2009 2010 2011 2012 2013 2014 11º 8º 6º 5º 7º 2º 16º AES Sul 2007 10º 1 – Association of Brazilian electricity distributors 62 New distribution and sub-transmission operations center allows efficiency gains Modern layout maximizes the dispatch efficiency and decision making during the outage power restoration ● Integration g of DOC1 and SOC2 technicians into a modern and collaborative workplace: − enabling to rearrange positions at any time optimizing the use of resources − i improving i operational ti l efficiency ffi i − encouraging a multifunctional profile 1 – Distribution Operating Center; 2 – Subtransmission Operating Center 63 Modern and integrated systems contributes to the best allocation of resources Integrated and automated systems allow the monitoring of sub-transmission and distribution grid and the best allocation of resources for operational efficiency gains ● State of the art in technologies for management of events and d teams, providing idi a global l b l vision i i off emergency teams location throughout the concession area ● Service orders transmission through data devices, p g service teams that are closer to the location,, dispatching minimizing attendance time ● Innovative technology for forecasting and monitoring of summer rains, strategically located in the Company’s substations anticipating the resources allocation 64
Documentos relacionados
Apresentação do PowerPoint
● Solar project: Located in Agua Vermelha power plant, capacity of 28.1 MW
Leia mais