ELECTRICITY GENERATION

Transcription

1 3Q13

2 ELECTRICITY GENERATION World s Largest Producers (TWh) Total China USA Japan Russian India Germany Canada France Brazil South Korea 1.101, , ,9 617,6 610,2 560,5 553,7 522, , ,1 (5.0%) (4.8%) (4.6%) (2.8%) (2.8%) (2.6%) (2.4%) (2.3%) 2012 (19.6%) ,3 (21.3%) (100%) 9 th POSITION Source: BP Statistical Review of World Energy 2013 and IEA

3 Electricity Generation(%) World(2011) x Brazil (2012) 76,9% 41,3% 15,8% 11,7% 1,6% 2,7% 21,9% 7,9% 7,6% 4,8% 3,3% 4,5% World Brazil 3

4 ELECTRICITY CONSUMPTION 2013 Consumption by Category National Consumption TWh (+3,5%) (+5,9%) Industrial Residential Commercial Others* Total Source: EPE Others*= Rural; Public Service; Public Lighting 4

5 SEASONALIZATION BRAZIL 2014 GW average Average 48,8 GW 55,9 54,9 51,2 46,8 45,4 46,2 47,5 48,1 48,4 47,9 47,6 46,8 Jan Febr Mar April May June July Aug Sep Oct Nov Dec 5 Source: CCEE 5

6 ONLY GENERATION: 100% Hydro 4 th Largest Hydro Energy Generator in Brazil 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 68 customers 1,016 employees 6 plants* Installed capacity of 7,457.3 MW ** US$ 3.2 billion in liabilities US$ 7.8 billion in assets EBITDA(LTM) of US$ 0.9 billion Debt / EBITDA 1.4x CESP was designated to provide generation services in Três Irmãos HPP from April 18 till the genco company winner of the bid takes over. The auction is scheduled to take place in March **By considering Três Irmãos HPP (quotas regimen) with an installed capacity of MW. 6

7 Split-up 04/01/99 Privatized 07/16/98 11/05/97 04/14/99 7

8 10 Biggest Producers (Installed capacity in MW average December 2013) 8,4% 7,8% 7,3% 5,9% 5,8% 5,6% 5,4% 4,9% 4º 4º 3,9% 2,1% SOURCE: Brazilian Electricity Regulator (ANEEL) 6

9 CESP has six hydroelectric power plants located in the State of São Paulo with total installed capacity of 7,457.3 MW and total guaranteed power output of 3,916 average megawatts (MW). Ilha Solteira * The concession was not renewed and CESP was temporarily designated as responsible for providing the Electric Energy Generation Service. Três Irmãos * Jaguari Jupiá Porto Primavera Paraibuna 9

10 POWER PLANTS ILHA SOLTEIRA (IS) TRÊS IRMÃOS * (TI) GUARANTEED START CONCESSION GENERATING INSTALLED POWER OUTPUT OF MATURITY UNITS CAPACITY (AVERAGE MW) OPERATIONS DATE 20 3,444 1,731.5 Jul/18/1973 Jul/07/ Nov/28/1993 Nov/18/11 JUPIÁ PORTO PRIMAVERA PARANÁ RIVER... PARAIBUNA JAGUARI PARAIBA RIVER... T O T A L , Apr/14/1969 Jul/07/ ,540 1,017 Jan/23/1999 May/21/ , , Apr/20/1978 Mar/09/ May/05/1972 May/20/ , , * CESP was designated as responsible for providing Electric Energy Generation Service to Três Irmãos HPP. CESP will continue to function the plant until a new operator wins the auction. 10

11 TRÊS IRMÃOS HPP FACTS Concession Maturity Date November 18, 2011 CESP Required the Concession Renewal Granting Power opportunely did not reply Provisional Measure 579 included Três Irmãos September 11, 2012 (Indemnization offered R$1.7 bi ) CESP did not accept the concession renewal December 3, 2012 Power from Tres Irmãos was allocated as quotas April 18, 2013 (Granting Power did not offer any indemnization at that time) CESP is temporarily designated as responsible for the provision of Generation Services (CESP accepts it with GAG of R$ 29.3 million per year) Meetings with MME / EPE October 2013 (CESP divulges its indemnization amount of R$ 3.8 bi) New bid foreseen for March

12 TRÊS IRMÃOS HPP REVENUE Costs of Management of Generation Assets (GAG) (MME Ordinance No. 125/2013) Annual : R$ 29.3 million Annual Generation Revenue (RAG) * (ANNEL Legal Resolution No /2013) Annual : R$ 71.8 million Refunded: Financial Compensation for the use of Water Resources and PIS/COFINS Monthly: R$ 7.5 million * RAG includes: Charges for Use of the Transmission System, Connection, Inspection Fee and R&D 12

13 OPERATIONAL PERFORMANCE 13

14 Date : December ,921 0,921 0,934 0,928 0,934 0,930 0,925 0,924 0,0252 0,0106 0,0105 0,0063 0,0054 0,0059 0,0069 0,0095 0, ,896 0,0252 Source: ONS 14

15 CESP has been consistently producing energy above the physically guaranteed level Energy Production (GWh) 34, , Guaranteed Power = 3,916.0 MW average* Nominal Annual Production = 34,304 GWh *including Três Irmãos Power Plant 15

16 LEVEL OF RESERVOIRS Subsystem - South East / Middle West (70% of the country s storage) ,07% 43,2% Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez Source: ONS 16

17 ASSURED ENERGY x HYDRAULIC GENERATION Nov/ Nov/2013 GW Average GW (med) 70,0 60,0 50,0 40,0 30,0 20,0 Garantia Física Geração Hidráulica GSF Assured Energy Hydraulic Generation 60,7 1,00 1,02 1,02 1,03 0,97 1,00 1,03 1,01 1,03 1,03 0,98 0,91 47,7 47,3 0,75 48,0 48,0 48,0 47,1 43,3 45,8 45,5 46,3 47,0 44,0 45,1 46,3 47,4 43,9 43,9 45,7 46,9 44,6 45,8 45,9 43,7 45,4 43,0 Fator MRE 1,20 1,00 0,80 0,60 0,40 10,0 0,20 0,0 nov/12 dez/12 jan/13 fev/13 mar/13 abr/13 mai/13 jun/13 jul/13 ago/13 set/13 out/13 nov/13 0,00 Source: CCEE GSF Generation Scaling Factor 17

18 AVERAGE PRICE PLD - R$/MWh Subsystem South East / Middle West Annual Average Monthly Average 413,95 339,75 344,84 331,07 378,22 266,16 260,99 290,72 214,54 196,13 207,62 97,36 67,31 135,4 70,28 38,73 29,42 166,69 121,29 163, Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Jan Source: CCEE 18

19 Energy Auction Action A -1 Date: Dec/17/2013 Energy delivery: Jan/1st/2014 Foressen demand of the Distribution Market: MW average Total energy traded at auction: MW average Products Maximum Price 1 year R$ 192,00 18 months R$ 166,00 3 years R$ 150,00 Average PLD in December R$ 291,00 CESP uncontracted energy MW average CESP : Sale of 400 MW average (1 year) R$ 191,41 Sale of 98 MW average (18 meses) R$ 165,20 19

20 150,0 140,0 130,0 120,0 110,0 100,0 90,0 80,0 70,0 60,0 50, , (Botox) (Botox) ,40 SINOP 67,31 83,49 São Manoel Teles Pires , Bxo. Iguaçu Sto. Antonio Jirau Others Sources 124,43 99,48 Divers Belo Monte 119,00 135,58 105,12 91,20 São Roque Existing Energy Auctions - Average Existing Energy Auctions CESP New Energy Auctions CESP ( Botox Energy 100%) New Energy Auctions Average (Hydro) New Energy Auctions Média (Thermal) Alternative Energy Sources Auctions (Hydro) Alternative Energy Sources Auctions (Thermal) Alternative Energy Sources Auctions (Wind) Alternative Energy Sources Auctions (Bio) 20

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22 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) 22

23 Gross Revenue BRL million 3,819 3,319 3,379 3, , , , , ,068 1,287 62,15 Average Prices R$/MWh 76,11 79,41 81,40 84,73 92,29 91,50 68,81 Invoiced Amount GWh ,303 8,220 23

24 2, Evolution of Net Revenue BRL million 2, ,480 2, ,905 2, , , ,145 68,7 60,9 EBITDA (BRL million) , Q12 3Q13 EBITDA Margin (%) 65,6 69,7 67,4 69,

25 Operational Expenses BRL million Employees Q13 Personnel Expenses x Net Revenue (%) ,9 7,3 7,2 7,4 7,4 7,6 6,3 6,5 6, Q12 3Q Q12 3Q13 25

26 Debt Charges + Monetary Variation (Excluding Exchange Variation) BRL million M13 3Q12 3Q13 26

27 Capital Investments BRL million M13 3Q12 3Q13 27

28 FINANCIAL HIGHLIGHTS R$ 000 Operational Revenue 959, , % Net Operations Revenue 867, , % Financial Results (77,335) (124,867) -38.1% EBITDA 499, , % EBITDA Margin 57.6% 65.4% -7.8p.p Net Income 191, , % 28

29 FINANCIAL HIGHLIGHTS R$ 000 Operational Revenue 3,314,503 2,882, % Net Operations Revenue 2,952,910 2,548, % Financial Results (317,624 ) (456,612) -30.4% EBITDA 2,035,308 1,684, % EBITDA Margin 68.9% 66.1% +2.9p.p Net Income 795, , % 29

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31 FINANCIAL DEBT 9,8 Evolution by Currency Sep/30/2013 R$ 2,956 million % Local Currency 45% 7,5 6,9 7,0 55% 55% 36% 39% 5,3 35% 4,5 4,2 37% 31% 3,7 3,0 34% 27% 45% 64% 61% 65% 63% 69% 66% 73% Q DEBT/EBITDA 31

32 FINANCIAL DEBT IN FOREIGN CURRENCY : R$ 797 million (27%) OTHERS R$ 2 0% ( US$ 357 million ) BRADY PLAN R$ 64 8% BNDES R$ % 32

33 FINANCIAL DEBT IN LOCAL CURRENCY : R$ 2,159 million (73%) ELETROBRÁS R$ 32 1% BIB s R$26 1% BNDES Finame R$39 2% Pension Fund R$ 135 6% BONDS SERIES 8 R$1,090 50% FIDC R$ % 33

34 FINANCIAL DEBT PROFILE Sept/30/2013 R$ million 1,518 8% Local Currency 1, % % 36% % 72% 64% 58% 96% 57% 42% 4% Após CESP paid out in August the Bonds 7 (US$220 milhões) 34

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$ 2,904 million) 35

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37 TOTAL CAPITAL COMMON vs. PREFERRED Preferred Class B 64,3% Common 33,3% Preferred 2/3 Common 1/3 Preferred Class A 2,4% 37

38 MAIN SHAREHOLDERS Sep in percentage (%) SHAREHOLDERS ON PNA PNB TOTAL SÃO PAULO TREASURY DEPT COMPANHIA PAULISTA DE PARCERIAS OTHER SUBTOTAL FREE FLOAT ELETROBRÁS CREDIT SUISSE SECURITIES (EUROPE) HSBC BANK PLC LONDON UBS AG, LONDON BRANCH OTHER SUBTOTAL TOTAL Source: CESP 38

39 Common and Preferred (PNA + PNB) Common Shares Preferred (PNA + PNB) State 95% Market 86% State 14% Market 5% 39

40 Dec R$ million , , , , ,

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42 CESP is included in the BM&F Indexes 42

43 SHARE PRICES CESP 6 Period as from 31/12/2012 to 31/12/2013 CESP 6: +15.6% R$22.42 R$19.39 IEE: - 8.8% 26,250 IBOV: % 51,507 IEE- Electric Energy Index IBOV Bovespa Index Page Source: AE Broadcast

44 Evolution from 2003 to 2013 A - BB - BB - 44

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