Institutional Presentation 4T16

Transcription

1 Institutional Presentation 4T16

2 ELECTRICITY GENERATION World s Largest Producers (TWh) 2015 Total (100%) China (23,7%) EUA (18,1%) Índia (5,7%) Rússia (4,4%) Japão 995 (4,2%) Alemanha Canadá (2,7%) (2,6%) Brasil 586 (2,4%) 8 a POSITION França Coreia do Sul (2,4%) (2,3%) Fonte: Global Energy Statistical Yearbook

3 ELECTRICITY GENERATION Electricity Generation (%) World (2014) X Brasil (2015) 61,9% 40,8% 16,4% 10,6% 3,3% 2,5% 21,6% 13,7% 4,3% 4,4% 6,3% 14,2% Hydro Coal Nuclear Gas Oil Other World Brasil Fonte: EPE - Balanço Energético 2016 e IEA - Key World Energy Statistics

4 NATIONAL CONSUMPTION National Consumption by Class Accumulated TWh (-0,9%) (+1,4%) (-2,9%) (-2,5%) (+1,1%) Residential Industrial Commercial Other* Total Fonte: EPE - Empresa de Pesquisa Energética Other*= Rural; Public Service; Public light 4

5 LEVEL RESERVOIRS Subsystem Southeast / Midwest (70% country s storage) Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez Fonte: ONS 5

6 ENERGY GENERATION 2015 X 2016 MWmed MWmed GH Hydraulic Generation GT Thermal Generation ,347 MW average 61,659MW average J F M A M J J A S O N D GH_2015 GH_2016 GT_2015 GT_2016 Load_2015 Load_2016 Fonte: ONS

7 PHISICAL GARANTEE X HYDRO GENERATION GW ,939 0,784 43,1 45,7 0,943 0,907 50,3 50,2 Garantia Física Produção Hidráulica GSF 0,935 0,888 0,848 0,850 0,854 0,835 48,0 0,801 0,822 44,1 42,7 42,0 41,7 40,9 41,3 42,7 1,063 0,959 51,2 47,2 58,3 55,5 53,2 51,3 49,6 50,0 49,5 50,0 51,0 50,3 45,9 50,2 49,2 48,2 GSF 1,200 1,000 0,800 0,600 0,400 0,200-0,000 GSF Generation Scaling Factor Source: CCEE 7

8 AVERAGE PRICE PLD - R$/MWh Subsystem Southeast / Midwest Annual Average Montly/Quarter Average T16 2T16 3T16 4T Fonte: CCEE 8

9 ONLY GENERATION: 100% Hydro 1.2 million customers 14,105 employees 22 plants Installed capacity of 11,000 MW US$ 9.8 billion in liabilities US$ 21.6 billion in assets EBITDA of US$ 518 million Debt / EBITDA 19x 45 customers 569 employees 3 plants* Installed capacity of MW US$ 1.3 billion in liabilities US$ 3.6 billion in assets EBITDA(LTM) of US$ 0.4 billion Debt / EBITDA 1.0x Ilha Solteira and Jupiá ended concessions on july, 7th, CESP operated both HPP s as Assisted Operation until 30/06/

10 Split-up Apr/01/99 Privatized Jul/16/98 Nov/05/97 Apr/14/99 10

11 CESP has the grant of three hydro generations acting on price regime; Total installed capacity is 1,654.6 MW. 11

12 BACIAS/UNITS Nº OF UNITS CAPACITY INSTALLED PHISICAL GARANTEÉ MW/AVERAGED OPERATION START CONCEPTION END ILHA SOLTEIRA JUPIÁ ILHA + JUPIÁ* PORTO PRIMAVERA PARAIBUNA JAGUARI PP+PAR+JAG , ,5 18/Jul/73 07/Jul/ ,2 886,0 14/Abr/69 07/Jul/ , , , ,0 23/Jan/99 11/Jul/ ,0 50,0 20/Abr/78 09/Mar/ ,6 14,0 05/Mai/72 20/Mai/ , ,0 - - * CESP operated Ilha Solteira and Jupiá as Assisted Operation till 06/30/

13 TRÊS IRMÃOS HPP Nov 2011 Sep 2012 Dec 2012 Apr 2013 Mar 2014 Jul Nov 2014 Out 19,2015 Concession Maturity Date Provisional Measure Included Tres Irmãos CESP did not Accept the Concession Renewal Energy Power from Tres Irmãos was allocated as quotas Auction: Winner Tijoa S/A CESP did not Bid Lawsuit file against Federal Government asking R$6.7 billion. Request to receive R$ 1.7 billion in advance. The Justice Rejected CESP Appealed to receive R$1.7 billion in 7 years. The Justice agreed. The Federal Government contested. Union obtains a favorable decision. CESP appeals. Payments haven t started. 13

14 ILHA SOLTEIRA and JUPIÁ HPP Sep 2012 Dec 2012 Dec Dec 2014 July 7th, 2015 Out 2015 Nov 2015 Provisional Measure 579 Issuance Ilha Solteira e Jupiá Included Indemnization R$ 20 million CESP did not Accept the Concession Renewal ACR Contracts Expire CESP Sells 500 MW for 2014 and 100 MW for the 1º Half 2015 Accounting Impacts Concession Maturity Date Ministry set R$ 2 million as compensation for Ilha Solteira. CESP filed a lawsuit demanding compensation of R $ 1.5 billion (Ilha and Jupiá) CTG was the winner of the bid. Bonus for the grant: 13.8 billion. CESP operated the plants as "assisted operation until June 30 th,

15 AVAILABLE ASSETS FOR REVERSAL December/31/2016 (BRL million) Três Irmãos Ilha Solteira Jupiá Total Amount of Plants 3,529 2, ,337 Provision - Contingent Assets / Impairment -1,812-1, ,807 Subtotal 1, ,530 Provision 4T Balance of Available Assets to / Reversal 1, ,950 Amount on dispute in Court 6, ,252 Base Period Apr-13 Jun-15 Jun-15 15

16 OPERATIONAL PERFORMANCE 16

17 OPERATIONAL PERFORMANCE Energy Production (GWh) * Physical Garantee: MW = GWh *without considering quota regime at Ilha Solteira and Jupiá untill June 30th /

18 OPERATIONAL SITUATION December/2016 0,934 0,930 0,925 0,925 0,931 0,920 0,939 Forced Unavailability Equivalent Rate TEIFa 0,0252 0, ,0059 0,0063 0,0069 0,0095 0,0101 0,0160 0,0088 0, ,896 0,0252 Fonte: ONS 18

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20 Privatization of CTEEP R$ 1.2 billion Jul/2006 Public Offering of Preferred Class B Shares (PNB) R$ 2.0 billion Jul/2006 Bonds Operations US$220 millions = R$ 488 million - Aug/2006 US$350 millions = R$750 million - Jan/2007 FIDC III R$ 650 million Aug/2006 To match its cash flow generation with its debt service, CESP has launched a comprehensive capital restructuring plan with the following main components: Funds Involved in the Restructuring - R$ 6.3 billion 1.2 C T E E P 2.0 P U B L I C O F F E R 1.2 B O N D S 0.65 FIDC III 1.25 F I D C IV FIDC IV R$ 1.25 billion Jun/2007 Capital Increase R$ 3.2 billions Term: 10 years Grace Period: 5 years (for principal) 20

21 Gross Revenues R$ millions Average Prices R$/MWh 189,25 164,93 178,15 139, ,40 84,73 92, Invoiced Amount GWh

22 NET REVENUE & EBITDA Evolution of Net Revenue R$ millions EBITDA (BRL millions) EBITDA Margin (%) 85,5 78,4 67,4 69,1 62,2 58, ,6 22

23 CONTRACTED ENERGY Customer Portfolio (MW average) % % 78% 78% 78% 78% % % % 22% 22% 22% 22% 26% Distributors Free Market 23

24 CONTRACT PRICES Prices R$/MWh (December/2016) 169,68 174,32 178,17 178,05 177,70 178,32 190,57 195,64 221,29 223,25 223,25 223,25 223,25 223,25 Distributors Free Market 24

25 Operacional Expenses BRL million Employees Personnel Expenses/Net revenue(%) 10,6 7,4 7,6 6,3 5,1 6,9 4,

26 Debt Charges + Monetary Variation (Excluding Exchange Variation) R$ million

27 Capital Investiments R$ millions

28 FINANCIAL HIGHLIGHTS R$ million Operational Revenue % Net Operational Revenue % Financial results 135 (358) - EBITDA Adjusted % EBITDA Margin 54,6% 58,9% - 4,3pp Net Income 305 (61) - Dividends + JCP (interest on Equity) % 28

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30 PROVISIONS FOR LEGAL RISKS (R$ milhões) Balance Monetary correction and interest 436 Provision and Reversal (99) Payments (83) Balance * * There is an amount of judicial deposits of R$ 841 milhões 30

31 COURT LAWSUITS (Untill December/2016 (R$ bilhões) PROBABILIDADE QTDE. PROCESSOS VALORES EM 12/2016 QTDE. PROC. RELEVANTES VALORES EM 12/2016 PROBABLY R$ 2,9 29 R$ 2,3 POSSIBLE R$ 3,5 23 R$ 2,5 REMOTE 602 R$ 5,9 14 R$ 5,8 TOTAL R$ 12,3 66 R$ 10,6 Of the amounts related to lawsuits filed against CESP (judicial liabilities), 86% of them refer to the UHE Porto Primavera project and are concentrated in 66 lawsuits, most of which are filed in courts affiliated to the Mato Grosso do Sul State. 31

32 7,0 FINANCIAL DEBT Evolution by Currency December 31/2016 R$ 809 million LOCAL CURRENCY FOREING CURRENCY 39% 5,3 35% 4,5 37% 4,2 31% 3,7 34% -84% 3,0 25% 2,8 26% 1,7 0,8 61% 65% 63% 69% 66% 75% 74% 49% 51% 32% 68% ,3 2,8 2,2 2,1 1,7 1,1 0,7 1,0 0,9 Debt / EBITDA relation 32

33 FINANCIAL DEBT DECEMBER 31/2016 R$ 809 million Debt in Foreign Currency US$ 170 million (R$ 553 milhões) BNDES BRADY R$ 552; 68% FIDC R$ 83; 10% ELETROBRAS R$ 15; 2% CESP Pension Fund R$ 158; 20% Other R$ 1,0; 0,1% 33

34 FINANCIAL DEBT PROFILE DECEMBER, 31/2016 R$ 809 million 309 Moeda Nacional 59% % 92% 91% 8% 9% 96 1% 99% Após

35 Several factors enable CESP to generate strong operational cash flow. 1 - Low Operational Costs 2 - Low CAPEX Requirements 3 - Low Working Capital Requirements (less than 5% of net revenues) 4 - Tax Credits Reducing Future Tax Payments (R$ 2.4 billion) 35

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37 TOTAL CAPITAL COMMON x PREFERRED Preferred Class B (PNB) 64,4% Common (ON) 33,3% Preferred Class A (PNA) 2,3% PREFERRED (PNA + PNB) 2/3 COMMON ON 1/3 37

38 Common and Preferred (PNA + PNB) SP Estate; 95% Common Shares ON Preferred (PNA + PNB) Market 87% SP state 13% Market 5% 38

39 Main Shareholders March 2017 (%) CONTROL GROUP SHAREHOLDERS ON PNA PNB TOTAL FAZENDA DO ESTADO DE SÃO PAULO 94,1-7,2 36,0 COMPANHIA PAULISTA DE PARCERIAS - - 6,5 4,2 OUTROS 1, ,4 SUBTOTAL 95,2-13,7 40,6 FREE FLOAT ELETROBRÁS 0,1 90,1-2,0 HSBC BANK PLC LONDON - - 8,9 5,7 CREDIT SUISSE - - 6,2 4,0 ARX INVESTIMENTOS 4,8 3,1 UBS AG LONDON 7,4 4,8 OUTROS 4,7 9,9 59,0 39,8 SUBTOTAL 4,8 100,0 86,3 59,4 TOTAL Fonte : ITAU 39

40 December 31/2016 R$ million 2,7 5, ,3 109, ,8 7, ,3 7, ,5 182, ,4 210, ,4 194, ,0 327,

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42 CESP6 SHARE QUOTATION 21 From December 31/2015 to December 31/ IEE: + 46% IBOV: + 39% R$ 13,40 CESP6: +0,7% R$ 13,49 IEE Índice de Energia Elétrica IBOV Índice Bovespa Fonte: AE Broadcast 42

43 CESP CORPORATE RATING From January 2003 to June 2016 S&P Local S&P Global Moody s Global S&P Stand Alone (SACP) 43

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