Financial and Operating Results

Transcription

1 Financial and Operating Results 3Q09 Resultados Operacionais e Financeiros 1T08 November 17,

2 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 2

3 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 3

4 Introduction Presentation of Operating and Financial Information The financial and operating information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents 100% of CEMAR s results, excluding 34.86% related to minority interests, 25% of Light s results, excluding 11.97% related to minority interests, and 25% of Geranorte s result, which is currently at the pre-operating stage. The consolidated operating information represents 100% of CEMAR s and 25% of Light s results. In order to facilitate comparisons with 3Q08, the financial information is presented on a pro forma basis considering the same interest held by Equatorial in RME and by RME in Light at the end of 3Q09. Equatorial s pro forma results for 3Q08 are based on Light s pro forma results for the same period, which were adjusted to reflect the changes introduced by Law 11,638/07, pursuant to CVM Instruction 565/08, together with Profit Sharing, which is no longer recorded as personnel costs/expenses and is now recognized after the Income Tax line. The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies. 4

5 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 5

6 Operating Highlights CEMAR s and Light SESA s total energy volume amounted to 2,221 GWh in 3Q09, 4.1% more than in 3Q08. CEMAR s quarterly volume grew by 9.4%, while Light s increased by 0.2% (considering both captive and free markets). CEMAR s last-12-month energy losses totaled 26.4% of required energy in 3Q09, 2.5 p.p. less than the 4Q08 ratio of 28.9%. Light s last-12-month losses came to 21.5%, 1.1 p.p. up compared with 4Q08. CEMAR s last-12-month 3Q09 DEC index reached 9.4%, down to 25.2 hours, while last-12- month FEC index improved 15.1%, to 15.8 times. Light s last-12-month DEC and FEC moved down 22.0% and 18.9%, reaching 9.0 hours and 5.8 times, respectively. 6

7 Financial Highlights Net operating revenues (NOR) reached R$606.4 million in 3Q09, 3.8% up over 3Q08, reflecting a 16.0% increase by CEMAR and a 6.1% downturn by Light. Adjusting for non-recurring effects, 3Q09 EBITDA reached R$215.1 million, up by 4.0% over 3Q08. Adjusted net income came to R$71.5 million in 3Q09, reflecting a 3.2% increase over 3Q08. In 3Q09, Equatorial s consolidated investments grew 26.2% when compared with 3Q08. CEMAR s investments (excluding direct investments in the PLPT program) totaled R$62.2 million in 3Q09, while Light s investments came to R$37.2 million in the period, up by 7.7% over 3Q08. Geranorte s investments reached R$63.6 million in 3Q09. 7

8 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 8

9 Distribution Electricity Market Consolidated CEMAR: 3Q09 energy sales moved up by 9.4%, fueled by the increase of residential and commercial consumption, which climbed 13.9% and 9.7% respectively. Light: Consumption at Light s concession area (captive + free clients * ) increased 0.2% on the 3Q09, reaching 1,248 GWh, largely due to the residential sement (2.7%). Electricity Consumption (GWh) 2, % 2,221 Electricity Consumption per Segment (GWh) 1, % 9.4% 1, CONSUMPTION CLASS AND 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg. FREE CLIENTS (GWh) Residential % 2, , % Industrial % % Commercial % 1, , % Others % 1, , % Free Clients % % Total 2, , , % 6, , % 3Q08 3Q09 CEMAR Light *To preserve comparability with the market approved by Aneel in the Tariff Review process, the energy and demand measured of free customers Valesul, CSN and CSA were excluded as the exit of these customers to the core network is planned. 9

10 CEMAR Light Distribution Energy Balance and Losses Energy Losses (*) - CEMAR Energy Losses (*) - Light 28.6% 28.9% 28.5% 28.1% 26.4% 20.5% 20.4% 20.8% 21.2% 21.5% 3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09 (*) Energy losses over required energy (*) Energy losses (required energy + free market) Energy Balance ENERGY BALANCE (GWh) 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg. Required Energy (*) 1,242 1,119 1, % 3,441 3, % Sales (**) % 2,440 2, % Losses % 1, % Required Energy 1,472 1,518 1, % 4,653 4, % Sales 1,086 1,155 1, % 3,424 3, % Losses ( ) % 1,230 1, % (*) Including own generation. ( ) Excluding basic network losses (**) Including energy sales, own consumption and energy sales to CEPISA. 10

11 Distribution DEC and FEC (Last 12 months) CEMAR: The DEC index decreased 9.4% compared to the 3Q08 and the FEC index fell 15.1% on the same period. LIGHT: The DEC and FEC index decreased 22.0% and 18.9% respectively. CEMAR LIGHT % 25.2 DEC (hours) % 9.0 3Q08 3Q09 3Q08 3Q % % 5.8 FEC (times) 3Q08 3Q09 3Q08 3Q09 11

12 Generation and Trading Light Energia Electricity sold on the 3Q09 was 1.8% lower compared to the 3Q08 figure. GENERATION - Light Energia (GWh) 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg. Regulated Market Sales % % Free Market Sales % % Spot Sales (CCEE) % % Total % % Light Esco The 3Q09 sales, on Trading and Broker totaled 105 GWh, 3.0% less than in the 3Q08. Volume - GWh 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg. Trading % % Broker % % Total % % 12

13 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 13

14 Consolidated Performance NOR EBITDA Net Income % 3.8% 3.2% % % % 33.9% % -4.8% -0.2% 38.3% 13.3% 44.4% 49.7% 57.7% 66.1% 64.7% 86.9% 3Q08 3Q09 3Q08 3Q09 3Q08 3Q09 CEMAR Light CEMAR Light CEMAR Light Holdings (*) (*) Holdings: Equatorial, RME and Light S.A. 14

15 Consolidated Performance Contribution per Segment NOR EBITDA Net Income 3.1% 0.9% 6.7% 0.6% -1.4% 5.6% 0.6% -1.6% 96.0% 94.1% 93.7% Distribution Generation Distribution Generation Distribution Generation Trading Trading Holdings (*) Trading Holdings (*) (*) Holdings: Equatorial, RME and Light S.A 15

16 Adjusted EBITDA Adjusted EBITDA 4.0% Q08 EBITDA 3Q09 Adjust. EBITDA RTD Adjust. Regulatory Losses Adjust. 3Q09 EBITDA RTD Adjustment: R$3.9 million recognized in NOR, arising from the negative adjustment of the RTD (Delta PB) asset amount in CEMAR. Regulatory Losses Adjustment: R$6.2 million that negatively affected NOR because of the adjustment in the loss level of CEMAR s first tariff cycle. 16

17 Adjusted Net Income Adjusted Net Income 3.2% Q08 Net Income 3Q09 Adjust. Net Income RTD Adjust. Regulatory Losses Adjust. 3Q09 Net Income RTD (Deferred Tariff Repositioning) Adjustment: R$2.1 million recognized in the quarter, deriving from the negative adjustment of RTD (Delta PB) asset amount in CEMAR, net of tax effects and minority interest. Loss Level Adjustment: R$3.5 million that negatively affected the quarterly result because of the loss level adjustment in CEMAR s first tariff cycle, net of taxes and minority interest. 17

18 Debt: Schedule of Gross Debt Maturities Consolidated Gross Debt (100% CEMAR + 25% Light + 25% Geranorte) Geranorte Light CEMAR 1, Gross Debt Short Term After

19 Net Debt - Consolidated 100% CEMAR + 25% Light + 25% Geranorte Net Debt (R$MM)(*) and Net Debt/ EBITDA (Last 12 months) Net Debt Reconciliation (R$MM) , , , , Q08 4Q08 1Q09 2Q09 3Q09 Gross Debt Net Regulatory Cash Net Debt Asset (*) Excluding the debt with Braslight 19

20 Net Debt Pro-Rata 65.12% CEMAR % Light + 25% Geranorte Net Debt (R$MM)(*) and Net Debt/ EBITDA (Last 12 months) Net Debt Reconciliation (R$MM) , Q08 4Q08 1Q09 2Q09 3Q09 Gross Debt Net Regulatory Cash Net Debt Asset (*) Excluding the debt with Braslight 20

21 Investments (CEMAR, Light and Geranorte) CEMAR invested R$ 62.2 million in the 3Q09, excluding direct investments related to the PLPT, 17.8% less then the same period in Light Invested R$ 37.2 million in the 3Q09, 7.7% up on the same period in CAPEX (R$MM) 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg. CEMAR Own (*) % % PLPT % % Total % % Light Distribution % % Generation % % Energy Trading % % Administration % % Total % % Geranorte Generation N/A N/A TOTAL EQUATORIAL % % (*) Including the indirect PLPT investments 21

22 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 22

23 CEMAR s Tariff Review On August 29, 2009, CEMAR s new tariff became effective, in connection with the Company s Second Periodic Tariff Review, as ratified by ANEEL. The Repositioning Index was set at %. Considering the financial adjustments included in CEMAR s tariffs, related to the recovery of tariff differences in prior periods, the average perception to consumers will be -1.64%. PERIODIC TARIFF REVIEW (in R$ thousand) Electricity Purchased for Resale 415,145 Charges 75,794 Energy Transportation 97,536 Parcel A 588,475 Reference Company 265,629 Provisions for Doubtful Accounts 12,743 Regulatory Depreciation 101,579 Interest on Asset 163,846 Parcel B 543,797 Required Revenues (A+B) = C 1,132,272 Other Revenues (D) 4,855 Verified Revenues (E) 1,267,126 Repositioning Index ( [C - D] / E) % + Financial Components 9.55% Low Income 3.09% Delta PB 4.66% Others 1.80% Repositioning Index (Including Financial Comp.) -1.47% Average Effect on Consumers -1.64% 23

24 Agenda Introduction Highlights Operating Results Financial Results CEMAR s Tariff Review Recent Events 24

25 Recent Events CEMAR: Viva Luz Project : In October 2009, the State of Maranhão approved the allocation of R$49.0 million in state funds, to be used through the close of 2010, to exempt residential costumers with monthly consumption not exceeding 50kWh from the payment of energy bills. The Project is estimated to benefit up to 500 thousand residential consumers, which corresponds nearly to 30% of the CEMAR s total clients. Light: In a meeting held on November 06, 2009, Light S.A. s Board of Directors approved, among others, the following issues: The additional dividend distribution of R$94.7 million, or R$0.46 per share of the Company, relating to the profit reserve account balance as of December 31, The engagement of Light Serviços de Eletricidade S.A. to Novo Refis, as set forth by Law 11,941/2009, resulting in tax debt rescheduling in up to 180 monthly installments. The Share Buyback Plan, whereby up to 6,571,846 common shares issued by Light S.A. will be purchased at market prices no longer than 365 days as of November 10, Said Plan represents up to 6.73% of total free float and aims at complying with the Long-Term Shares Incentive Plan, without diluting the interest held by current shareholders. 25

26 Contacts Eduardo Haiama CFO and IRO Thomas Newlands IR Analyst Telephone 1: (21) Telephone 2: (21) Website: 26

27 Disclaimer This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the expectations of Company s management and on available information. These prospects include statements concerning the Company s current intentions or expectations for our clients; this presentation will also be available at our website and in the IPE system of the Brazilian Securities and Exchange Commission (CVM). Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company s control or expectation. The reader/investor is advised not to completely rely on the information above. The words believe", can", predict", estimate", continue", anticipate", intend", forecast" and similar words, are intended to identify estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements. This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind. 27