Novembro de EDP Energias do Brasil

Transcription

1 Novembro de 2009 EDP Energias do Brasil

2 Disclaimer 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.. 2

3 EDP: Successful Story in the Brazilian Power Sector Generation Distribution Commercialization Consolidated Net Revenue 2008¹ 791 3, ,904 (R$ million) Adjusted EBITDA 2008¹ (R$ million) ,363 Participation in EBITDA 2008¹ 40% 56% 4% 100% 5 th largest private generator by installed capacity Important partnership with EDP Renováveis 4 th largest operator of wind generation projects in the world 4 th largest private distributor in the Brazilian power sector in terms of energy sold 3 rd largest private trading company in the Brazilian power sector in terms of electricity traded Source: Emerging Energy Consulting and CCEE reports. Note: (1) Segment values in Reais and percentages do not consider intra-group eliminations. 3

4 Power Sector in Brazil: a Growth Story Power Consumption (Total Market) (GWh) Power Consumption (Free Market) (GWh) CAGR: 5.2% % Total Market: 22% 21% 24% 24% 26% CAGR: 10.0% Source: EPE. Generation Installed Capacity - Brazil (GW) Source: EPE. Installed Capacity by Generation Source (2009) CAGR: 89-99: 2.7% 99-09: 4.5% 09-16: 4.6% 1999 = 68.2 GW 2009 = GW Thermal 12.5% Nuclear 1.0% Thermal 23.5% Nuclear 1.9% Wind 0.5% Hydroelectric 86.5% Hydroelectric 74.1% ¹ 2016 Projection MME² Source: ANEEL. Note: (1) As of September, 2009; (2) According to a ten-year expansion plan approved by the MME in Source: ANEEL and EPE. 4

5 EDP History in Brazil In 1997, EDP initiated investments that resulted today in the EDP - Energias do Brasil platform. The company executed on its strategy for international expansion and participated actively in the privatization process for distribution companies and public tenders for generation projects in Brazil. Generation n and Trading Investment in Lajeado Acquisition of Peixe Angical (partnership with Furnas) 4 th turbine of Mascarenhas initiated operation SHPs São João and Santa Fé initiated operations A-5 auction TPP Pecém Creation of EDPR BR and acquisition of CENAEEL Distribution Acquisition of Bandeirante Acquisition of Iven (Escelsa and Enersul) Acquisition of control of Escelsa and Enersul Asset swap (Enersul for Lajeado) Received Investment Grade from Moody s Group Creation of EDP Brasil Spin-off of Bandeirante Corporate reorganization and new governance model of the Group IPO Unbundling of distribution and generation activities 5

6 Corporate Governance, Social and Environmental Responsibility Audit Committee Independent President Controlling Shareholder Independent Board of Directors Sustainability and Corporate Governance Committee Independent President Controlling Shareholder Independent 8 members (4 independent) Compensation Committee Chairman of the Board of Directors Controlling Shareholder Independent Code of Ethics Transparency EDP Institute Social, cultural and environmental activities Policy of minimum dividend payment of 50% of net income 6

7 Distribution Companies in Attractive Areas Strong concentration in the residential and industrial segments, covering 98 cities, being 28 in São Paulo and 70 in Espírito Santo Attractive growth profile 2.6 million clients (total concession area with a population of approx. 8 million) Total concession area of 50.9 thousand km 2 Energy Distributed by Segment Located in São Paulo, main economic center of Brazil with Residential Free 23% high industrial concentration Customers 35% 1 st economy of the country with ~33% of national GDP Industrial Others 22% 1.4 million clients in a total area of 9.6 thousand km 2 7% Commercial 13% Concession period: 30 years, until 2028 Located in Espírito Santo, an exporter-centric state with strong economic activity: 11 th largest economy in the country with 2.3% of national GDP 1.1 million clients in a total area of 41.2 thousand km 2 Concession period: 30 years, until 2025 Free Residential Customers 22% 32% Industrial 12% Others 20% Commercial 14% 7

8 Distribution Companies with Diversified Client Base Energy Sold by Segment (Captive Clients) 1 (MWh) 12,137 12,610 1,834 1,939 2,342 2,523 13,226 13,298 2,024 2,029 2,642 2,736 Others Commercial Others² 15% Residential 35% 4,052 4,018 4,156 3,908 Industrial Commercial 21% 3,908 4,130 4,402 4,626 Residential LTM³ Energy Losses Tariffs / Adjustments Industrial 29% BANDEIRANTE ANEEL TARGET ESCELSA 14.2% 14.7% 12.3% 10.4% 5.6% 5.9% 10.9% 11.0% 5.1% 5.4% 5.7% 5.9% 8.7% 8.8% 7.2% 5.2% 5.1% 5.0% Bandeirante Tariff Adjustment - % Next Tariff Revision Oct 11 Escelsa Tariff Adjustment - % Next Tariff Revision Aug 10 3Q08 3Q09 Bandeirante Escelsa 3Q08 3Q09 Notes: (1) Data refers only to Bandeirante and Escelsa; (2) Others include: rural, public power, public illumination and public service; (3) Last 12 months, as of September 2009; (4) Tariff revision. 8

9 Significant Generation Business EDP - Energias do Brasil installed capacity increased by more than three times since the IPO (from 530MW to 1,731MW in 2009) 1. HPP Lajeado MW Concession: 2032 HPP Peixe Angical 452 MW Concession: 2036 Pantanal Energética 52.2 MW Concession: 2029 CESA 61.9 MW Concession: until 2025 Costa Rica 16 MW Concession: until 2031 SHP Santa Fé 29.0 MW Concession: 2031 CENAEEL 6.2 MW 2 Concession: 2032 Energest MW Concession: until 2025 Note: (1) 100% supported by PPAs; (2) Represents EDP s proportional stake. 9

10 Attractive Generation Projects Projects Under Construction and Near Term Development Development Pipeline Under Construction: Thermal coal-fired Pecém Auction A-5 from MW (1) Small and Medium Hydro Plants (SHPs) 500 MW Start Year 2012 Installed Capacity 720 MW (615 average MW) Wind farms Ownership: 55% EDPR / 45% EDP Energias do Brasil 240 MW (1) Ownership Financing 50% EDP / 50% MPX 75% Debt / 25% Equity Thermal Gas-Fired Combined-Cycle Plant - RJ 500 MW BNDES R$1.4 billion approved R$700 million disbursed Tenor: 17 years Total 1,240 MW IDB US$327 million approved US$260 million disbursed Tenor: 13 and 17 years Near-term Development: Wind farm Wind farm in Rio Grande do Sul 31.5MW (1) Ownership 55% EDPR / 45% EDP Energias do Brasil Note: (1) Represents EDP s proportional stake. 10

11 Main Accomplishments and Strategy

12 Our Accomplishments Since the 2005 IPO 1 Expand generation business Installed capacity increased by 227% 1 Installed capacity (MW) +227% 530 1, Current Our Commitmen nts 2 3 Improve operating efficiency Productivity increased by 40% Develop trading business Traded energy increased by 68% 2 3 Distribution productivity (clients/employee)¹ 12-month energy sold (GWh) 927 1, Current 4, % 8,164 Result ts (2004 vs Current) 4 Consolidate position in the Brazilian power sector Distinguished position in several rankings Current Ranking among private capital companies Trading Business Distributed Energy 3 rd 4 th Note: (1) Data refers to Bandeirante and Escelsa. Installed Capacity 5 th 12

13 Expansion of Generation Business Growth in Installed Capacity (MW) , and , Expectation of New Operation 2, HPP Peixe Angical 4th turbine Mascarenhas SHP São João 2007 Additional Capac. Lajeado Cenaeel SHP Santa Fé 2009 Power Upgrades TPP Pecém Generation Investments Energy Sold from Generation Plants (GWh) Pre-IPO ( ) Cumulative Investment: R$1.3 billion 2006 LTM CAGR: +19% 7,660 Post-IPO ( Current) Cumulative Investment: R$2.0 billion Asset Swap: Exchange stake in Enersul to increase direct and indirect stake in UHE Lajeado Investment: R$753 million 4,758 5,568 6, LTM¹ Note: (1) Last 12 months, as of September (2) UTE Pecém will be finished in 2011, and will start to operate in the beginning of

14 Improvement in Operational Efficiency Productivity Distribution (Clients - thousands / Employee) Productivity Distribution (GWh Distributed / Employee) Bandeirante Escelsa Bandeirante Escelsa 2004 Current 2004 Current Manageable Costs Evolution 1 (Opex) (R$ million, Bandeirante + Escelsa) Project Vencer Inflation in the period (06 Sep/09): 17.8%% 45.0% 46.1% 43.2% 42.7% 41.7% Initiated in the first quarter of 2009 Main accomplishments: Reduction of organizational layers from 5 to 3 40% reduction in number of managerial positions Reduction in the average age of managerial positions Reduction in personnel expenses M08 9M09 Opex D&A Provision % Gross Margin Note: (1) Manageable costs include: personnel, material, third-party services, provisions, depreciation and amortization costs for distribution companies Bandeirante and Escelsa. 14

15 Development of Trading Business Energy Traded (GWh) 6, LTM CAGR: +7% 6,702 7,188 7,282 8,164 60% 3,812 5,509 6,374 6,527 7,461 91% 40% 2,567 1, LTM¹ 9% 2008 Energy Consumption Free Market 26% Intra-Grup Net Operating Revenue - Trading Business (R$ million) Third Parties 2005 LTM CAGR: +18% Captive Market 74% LTM¹ Note: (1) Last 12 months, as of September

16 Consistent Track Record of Dividend Payments Since the IPO, in 2005, EDP distributed to its shareholders R$765 million and: At the same time, EDP - Energias do Brasil invested approximately R$4.2 billion in CAPEX Company leverage ratio remains at a comfortable level (1.9x Net Debt / LTM EBITDA) Dividends/Interest on Equity since IPO (R$ / Share) Payout since IPO (% Net Income) CAGR: +22% % 46.5% 50.0% 67.5% EDP Policy Dividend Policy: Minimum of 50% of Adjusted Net Income Source: Company, BOVESPA and Bloomberg. 16

17 Solid Growth Strategy Decision Making Rules: 1. Control of the asset acquired or developed 2. Rate of return above the cost of capital 3. To maintain an adequate risk profile and debt level Generation Business Expansion Continue to develop growth opportunities in the generation business, focused on: New projects with adequate rate of return Besides Pecém (360 MW) under construction, there are 1,240 MW in generation projects currently being studied Partnerships with other companies, with EDP retaining control Focus on partners with complementary experience, with the objective of minimizing risk and maximizing probability of success Acquire established generation assets Continue to Develop the Trading Business Capture growth in the free market Optimize risk management in the integrated generation and distribution business Provide value-added energy solutions Strategy to attract and retain clients 17

18 Solid Growth Strategy Maintain Investments in Distribution Organic Growth Bandeirante: 11.2% growth in GWh over the period Escelsa: 20.5% growth in GWh over the period Maximize operational efficiency Pro-active management of the regulatory process Consolidate Position in the Brazilian Power Market EDP is prepared to capture consolidation opportunities to leverage the company's strategy in its different segments Consistent criteria for minimum return required and management of integration risk 18

19 Financial Highlights

20 Financial Highlights EDP Consolidated Net Revenue (R$ million) EBITDA and EBITDA Margin (R$ million, %) 3,985 4,528 4,904 3,492 3, % 1, % 1, % 1, % 30.7% 1,057 1, M08 9M09 EBITDA Breakdown 9M09 (%) M08 9M09 Net Income (R$ million) Trading 2% Distribution 50% Generation 48% M08 9M09 Note: (1) Includes R$129 mm impact from goodwill amortization; (2) Includes R$120 mm from the sale of ESC

21 Comfortable Debt Profile Adequate debt management of EDP - Energias do Brasil prompted a rating upgrade by Moody s in 2009; EDP holding is rated Ba1 stable on a global scale, whereas Bandeirante and Escelsa are rated Baa3 - stable Net Debt 1 and Net Debt / EBITDA² (R$ million) Total Debt Breakdown (Sep ) (%) 2.4x 1.9x 1.9x 1.9x Fixed Rate US$ 4% 5% 2,562 2,093 2,546 2,518 Dec-06 Dec-07 Dec-08 Sep-09 TJLP 37% CDI 54% Debt Amortization Schedule³ (R$ million) Approved Credit Lines (R$ million) Pecém 610 Instrument Approved Availability Through Tenor up to (years BNDES BNDES IDB (Porto Pecém) 2, BEI BNDES (SHP Santa Fé) Adjusted After Cash 2012 Total 3,246 Note: (1) Net debt = gross debt cash and cash equivalents; (2) LTM EBITDA; (3) Consider principal, interest and hedge operations. 21