apresentacao aes eletropaulo_3_q13_ing
TRANSCRIPT
3Q13 Results
November, 2013
3Q13 Highlights
Operational
� 14% reduction in non-technical losses (3.6% vs. 4.2% in 3Q12)
� ~5% reduction in SAIDI and SAIFI to 8.21 hours and 4.54 times, respectively
� Investments totaled R$ 193 milion vs. R$ 225 milhões no 3Q12
� 2.7% growth in total consumption compared to 3Q12, totaling 11,626 GWh
� Grooss Revenue totaled R$ 3,120 milhões, 16.9% lower vs. 3Q12 due to the program to reduce
electricity costs imposed by Law n.º 12,783/2013, compensate by the market growth
2
Financial
electricity costs imposed by Law n.º 12,783/2013, compensate by the market growth
� Costs reduction program: manageable PMSO decreased by R$ 55 million (17%) compared to
3Q12, adjusted by the IGP-M index (R$ 88 million YTD)
- Guidance of cost reduction revised to R$ 140 million in 2013
� EBITDA of R$ 142 million and net income of R$ 27 million.
- Adjusted Ebitda of R$ 374 million vs R$ 232 in 3Q12
� In July 2013, AES Eletropaulo received the "Transparency Award 2013" by adopting best
accounting practices in preparing the financial statementsAward
10.36 8.35 8.64 8.21
8.68
8.67 8.67
8.49
-5.0%-14.7%
Consistent improvement in quality indicators
SAIDI (hours)
-2.3%
SAIDI (hours)
� SAIDI and SAIFI reduced by ~ 5% for 8.21 hours and 4.54 times, respectively
� 40% reduction in penalties costs for transgression of indicators (frequency and duration of
interruptions)
8.35 8.64 8.21 6.08 5.93
2011 2012 3Q12 3Q13 Jan-Sep 12 Jan-Sep 13
5.45 4.65 4.79 4.54 3.38
3.27
6.93 6.87 6.87 6.64
2011 2012 3Q12 3Q13 Jan-Sep 12 Jan-Sep 13
-3.2%
3
LTM
-5.2%
SAIFI (times)
-19.4%
LTM
LTM LTM
SAIFI (times)
SAIFI Aneel Reference
SAIDI Aneel Reference
Total Losses (last 12 months)
-4.6% -6.8%
� 14% reduction in non-technical losses and total losses within the regulatory parameter
Efficiency in loss regularization and reduction
12.611.5
41 – Values estimated by the Company to make them comparable with the reference for non-technical losses of the low voltage market determined by the Aneel2 – Aneel Reference: normalized values for the regular calendar
12.611.5
10.5 10.510.1
4.4 4.0 4.1 4.2 3.6
6.5 6.5 6.1 6.2 6.1
10.9 10.5 10.4 10.4 9.7
2010 2011 2012 3Q12 3Q13
Aneel Reference²
Technical Losses¹
Non Technical Losses
22
35
80
739
831
701
533
2T13Investments background (R$ million)
� //////////////////
Investments Breakdown (R$ million)
� ///// 3Q13
R$ 193 million
-7.9%
Investments targeted operational reliability, expansion and customer service
36
717 796
621 553
458
213 152
80
26
71
11 39
579 533
225 193
2011 2012 2013(e) 9H12 9H13 3Q12 3Q13
Own Resources Funded by the clients
5
-14.0%
1 – Operational reliability Capex corresponds to the investments made for grid modernization and improvement in quality of service
51
44
39
8
710
Serviços ao Cliente Expansão do Sistema
Confiabilidade Operacional¹ Financiado pelo cliente
TI Recuperação de Perdas
Outros
4,331
1,468 2,797
731
9,326
1,998
11,323
4,433
1,396 2,807
705
9,342
2,284
11,626
Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market
3Q12
3Q13
Consumption evolution (GWh)1
2.4% -4.9% 0.4% -3.5%
0.2%
14.3%
2.7%
Recovery in residential and commercial
4,331 2,736 3,201
1,055
11,323
4,433 2,726 3,336
1,130
11,626
Residential Industrial Commercial Public Sectorand Others
Total Market
3Q12
3Q13
Residential Industrial Commercial Public Sector and Others
Captive Market Free Clientes Total Market
6
Consumption evolution with the free market allocated in the respective consumer classes (GWh)
2.4% -0.3% 4.2% 7.1%
2.7%
1 – Captive and free commercial clients. Own consumption not considered
12,775
4,338
8,816
2,184 5,918
13,063
4,169
8,617
2,151
6,630
Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market
9M12
9M13
27,999 34,032 34,629
Consumption evolution (GWh)1
2.2% -3.9% -2.3%-1.5%
-0.4%
12.0%
1.8%
28,114
Performance in 9M13 supported by the residential and commercial
12,775
8,180 9,898
3,178
13,063
8,066 10,257
3,243
Residential Industrial Commercial Public Sectorand Others
Total Market
9M12
9M13
34,629
Residential Industrial Commercial Public Sector and Others
Captive Market Free Clientes Total Market
-1.4%
7
Consumption evolution with the free market allocated in the respective consumer classes (GWh)
2.2% 3.6% 2.0%
1.8%
1 – Captive and free commercial clients. Own consumption not considered
34,032
1,193
1,157
6,128
5,303
2,748
1,870
352
340
10,131
8,537
2T13Gross revenues (R$ million) Operating Costs and Expenses¹ (R$ million)
-16.9%
-13.5%
-11.2%
-17.5%
Revenue reflects the cost reduction program costs and market increase
4,936 4,145
1,749 1,513
378 375
2,127 1,888
9M12 9M13 3Q12 3Q13
7,031 6,327
2,293 2,034
1,870
1,386 878
166 195
3,845 3,106
9M12 9M13 3Q12 3Q13
Net revenue ex-construction revenue
Deduction to Gross Revenue
Construction revenues
8
-16.9%
1 – Depreciation and other operating income and expenses are not included 2 – Personnel, Material and Services
Energy Supply and Transmission Charges
PMS² and Others Expenses
� R$ 89 million reduction in 9M13 vs. the same period in 2012 adjusted by the IGP-M¹ (89% of target reached)
� R$ 58 million (17%) reduction in manageable PMSO in 3T13
-13.6%
Guidance reviewed to R$ 140 million in 2013
PMSO2 Formation (R$ million)
378325
281
375
61 8 14 24
22 12 10
80
3Q12 FCesp Contingencies, ADA and
Write-Offs
3Q12Manageable
IGP-M Personal Materials and
Third Party Services
Others 9M13Manageable
Contingencies, ADA and
Write-Offs
FCesp 3Q13
9
-17.2%
1 – 3Q12 Manageable PMSO adjusted by inflation (IGP-M index) of 4.4% 2 – PMSO: Personnel, Material, Services and Other expenses
Formação do Ebitda (R$ milhões)
� Increase of 2.7% of the total market and tariff adjustment
� Reduction of R$ 44 million in expenses manageable PMSO
61.2%
Growth in EBITDA reflects market program to reduce costs and tariff
adjustment
101– Construction cost and assets write-offs 2 – PMSO: Personnel, Material, Services and Other exp
88
212
376
14463
61
130
44 10
80
152
3Q12Ebitda
Regulatory assets and liabilities
F.Cesp 3Q12 Adjusted
Ebitda
Market and tariff
Manageble PMSO
Others 3Q13 Adjuested
Ebitda
F.Cesp Regulatory assets and liabilities
3Q13Ebitda
76.6%
2T13Net income (R$ million) 3Q13 highlights
� Increase of 2.7% of the total market
� Regulatory liabilities of R$ 95 million in the
period, mainly referring to the return of the
271
Net income of R$ 27 million in 3Q13
11
period, mainly referring to the return of the
3rd RTP
� Reduction of R$ 34 million in expenses with
PMSO and other income and expenses
� Flat financial result
(R$ 7.5 million in 3Q13 and 3Q12)
x Income (loss) adjusted for assets adjusted by regulatory assets and liabilities
132 25 122
Net Income
(149)
54
0.5 27
9M12 9M13 3Q12 3Q13
Cash generation determined by the best operating result and reimbursement of
power costs by CDE
INITIAL CASH 1,083.1 986.5
Operating Cash Flow 343.8 591,2
Investments (195,5) (172,2)
Net Financial Expenses (33,7) 6,5
3Q133Q12R$ million
12
Net Amortization (217,0) (17,3)
Pension Fund expenses (57,4) (55,4)
Income Tax - (15,1)
Disposal of assets - 12,1
Restricted and / or blocked cash 9,0 (48,5)
Free Cash Flow (150,7) 301,3
Dividends (0,0) (0,0)
FINAL CASH CONSOLIDATED 932.4 1,287.8
Net debt Average cost and average debt maturity
Continuous reduction in the level of indebtedness of the Company
6.6 6.3
2.1x
4.9x
4.4x
3.1x 2.4x
3.5x 3.5x
3.5x
5.5x
3.75x3.5x
� Net debt / Ebitda index adjusted by 2.4 times
131 –Adjusted EBITDA with the expenses related CESP Foundation and regulatory assets and liabilities.
11,13 11,57
3Q12 3Q13
Effective rate
Average Time - years
3.1 3.1 3.1 3.0 2.9 2.7
2.1x 2.1x3.1x 2.4x
1Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Net Debt (R$ billion)
Net Debt/Ebitda Adjusted¹
Covenants limits - Net Debt/Ebitda Adjusted¹
The statements contained in this document with regard to the
3Q13 resultsThe statements contained in this document with regard to the
business prospects, projected operating and financial results,
and growth potential are merely forecasts based on the
expectations of the Company’s Management in the relation to
its future performance. Such estimates are highly dependent
on the market behavior and on the conditions affecting
Brazil’s macroeconomic performance as well as the electric
sector and international market, and they are therefore subject
to changes.