Results Conference Call
1Q10
1Q10 Highlights
Consumption (captive + free) 9.5% up on 1Q10, compare to 1Q09, driven by significant growth in both markets Improvement in collection rate between quarters. CAPEX Increase, specially in development of distribution networks.
OPERATING PERFORMANCE
Net Revenue of R$ 1,594.3 million.
RESULTS
EBITDA of R$ 312.4 million in 1Q10. Net Income of R$ 120.6 million.
CAPITAL STRUCTURE
Strong cash balance of R$ 915.4 million as of March 31, 2010, compared with R$ 828.4 million in Dec/09.
Dividends of R$ 432.3 million approved in March, 24th, paid in April 1st. payout of 75.2% and dividend yield of 8.1%.
Net Debt of R$ 1,523.8 million, Net Debt/EBITDA ratio of 1.3x.
Energy Market
Brazilian and regional consumption
TOTAL MARKET (GWh) (Captive and Free Customers) BRAZIL 1 SOUTHEAST
+10.2%
1
LIGHT 2
+9.5%
+9.6%
94,024
103,055
49,873
54,982
5,558
6,087
1Q09
1Q10
1Q09
1Q10
1Q09
1Q10
1 Source: EPE (Monthly Overview of the Electricity Market) 2 Taking into account the power consumed by the free clients CSN, Valesul and CSA, the variation in consumption would be +7.8%. To preserve comparability with the market approved by Aneel in the tariff review process, the billed energy and demand of free customers Valesul, CSN and CSA were excluded, in view of these customers planned migration to the core network.
Energy Consumption
Distribution
ELECTRICITY CONSUMPTION (GWh)
1.0% a.a.
9.5%
6,087 5,453 5,481 5,558
Free Customers 10.8% Others 14.2%
Residential 39.7%
Commercial 28.0%
Industrial 7.4%
1Q07
1Q08
1Q09
1Q10
Note: To preserve comparability in the market approved by ANEEL in the tariff adjustment process, the billed energy and demand of the free customers Valesul, CSN and CSA were excluded in view of these customers planned migration to the core network.
Captive Market
1Q10 performance
ELECTRICITY CONSUMPTION (GWh) QUARTER
+8.6%
5,430 5,002
+11.7%
2,163
2,416
+7.6%
+3.8%
1,582
1,702
+4.7%
823 433 450
862
Residential
Industrial
Commercial 1Q09 1Q10
Others
Total
Free Market
Consumption and billed demand
ELECTRICITY CONSUMPTION (GWh) NETWORK USE FREE CUSTOMERS ELECTRICITY DEMAND (GW) NETWORK USE
+0.9% +18.1%
657 556
+9.4%
3,890
3,923
2,254
2,465
1Q09
1Q10 Free
Free Customers 1Q09
Utilities 1Q10
1 The amount presented in GW is related to the annual sum of billed demand each month, considering peak and out-of-peak periods.
Note: To preserve comparability in the market approved by ANEEL in the tariff adjustment process, the billed energy and demand of the free customers Valesul, CSN and CSA were excluded in view of these customers planned migration to the core network.
Collection
COLLECTION RATE BY SEGMENT 1Q10
96.3% 98.5% 87.0% 98.0% 101.9% 93.5% 94.7%
COLLECTION RATE 12 Months
93.0%
98.5% 96.6% 97.2% 97.3%
Total
Retail 1Q09
Large Customers 1Q10
Public Sector
Mar/09
Sep/09
Dec/09
Mar/10
Loss Prevention
LOSS EVOLUTION (12 months)
43.2% 41.8% 43.1% 38.23%
Recovery GWh
40.1 35.9 -10.5%
6,819
6,885
7,529
1Q09 4,847 4,832
1Q10
5,358
1,972 Mar/08
2,053 Mar/09
2,171 Mar/10
INCORPORATION GWh
23.1 18.7 -66.2%
Non-technical losses GWh Techincal losses GWh % Non-technical losses / Low voltage market % Non-technical losses / Low voltage market - Regulatory 1Q09
1Q10
Operating Quality
ELC Equivalent Length of Interruption per Consumption Unit (hs)
10.54 11.13 9.71
EFC - Equivalent Frequency of Interruption per Consumption Unit (n.)
6.96
6.22
6.18
Mar/08
Mar/09
Mar/10*
Mar/08
Mar/09
Mar/10*
* Excludes the affects of the event on the National Interconnected System on 11/10/09.
Net Revenue
NET REVENUE FROM DISTRIBUTION (1Q10)
Industrial 7%
NET REVENUE (R$ MN)
1,437.6
Commercial 28%
1,594.3
Others (Captive) 11%
Network Use (TUSD) 6%
+ 10.9%
Various 3%
Residential 45%
NET REVENUE BY SEGMENT (1Q10)*
Generation 4.6%
1Q09 1Q10
Commercialization 2.0% Distribution 93.3%
*Eliminations not considered
10
Operating Costs and Expenses
Manageable (distribution): 296.1 (21.5%)
MANAGEABLE DISTRIBUTION COSTS (R$MN)
+17.3%
Non Manageable (distribution): 1,014.4 (73.7%)
296
252
1Q09
1Q10 1Q09 116.7 65.5 59.8 5.7 70.1 1Q10 132.6 93.3 63.5 29.8 70.2 Var. (%) 13.6% 42.4% 6.2% 422.4% 0.2%
Generation and Commercialization: 64.6 (4.7%)
*Eliminations not considered
R$ MN PMSO Provisions PPD Contingencies Depreciation
11
EBITDA
CONSOLIDATED EBTDA (R$MN)
EBITDA BY SEGMENT* 1Q10
350 312
-10.6% (EBITDA Margin: 17.6%)
Distribution 84.4%
Generation 14.9%
(EBITDA Margin: 62.7%)
Commercializaton 0,7%
*Eliminations not considered
(EBITDA Margin: 7.1%)
1Q09
1Q10
12
Net Income
NET INCOME 1Q10 R$ MN
-28.4%
168.3
(37.2) (73.1)
63.3
(0.8)
120.6
1Q09
EBITDA
Financial Result
Taxes
Others
1Q10
13
Indebtedness
NET DEBT EVOLUTION 1,637 1,523 AMORTIZATION* MAR/10 (R$ MN)
Maturity: 3.4 anos
1.4
1.3
208
Dec/09 Mar/10 2010
* Principal only
477
2011
390
2012
457
2013
500
2014
99
2015
249
After 2015
DEBT COST EVOLUTION 12.17% 13.97% 9.84% 9.88%
TJLP 20.6% US$/Euro 2.5%* CDI/Selic 78.8%
7.39%
2007
7.62% 5.30%
2008 Real Cost 2009 Nominal Cost
4.99%
Mar/09
* Considering Hedge
14
Investments
INVESTMENTS (R$MN)
+44.3%
115
80
1Q09
1Q10
R$ MN Losses Combat Development of Distribution Network Quality Improvements (optimization of structure and preventative maintenance) Generation Maintenance
1Q10 27.6 48.8 11.5 3.2
1Q09 19.1 35.0 10.7 2.2
Variation 8.5 13.8 0.8 1.0
New Generation Projects
12.6
3.1
9.5
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Aviso Importante
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Companys control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Companys strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Companys actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Companys assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Companys businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.
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