2014 results conference call -...
TRANSCRIPT
Mauro Arce | CEO Almir Martins | CFO and Investor Relations Officer Mituo Hirota | Production Officer Márcio Rea | Administrative Officer
www.cesp.com.br
2014 Results Conference Call
2
2014 2013
4,8563,904
Net RevenueR$ million
2014 2013
2,198 1,858
1,516 1,629
1,670 869
7160
5,4554,417
Energy RevenueR$ million
Free Market Regulated CCEE Três Irmãos
23.5%
(+340)
24.4%
(-114)
(+801)
Deductions from Operating Revenues 2014: 607.5 million 2013: 516.5 million
*
REVENUE BREAKDOWN
*Includes the amount of Other Revenues
GWh R$ Million Average Price
SPOT 2,471.5 1,687.0 682.58
MRE (1,248.6) (17.1) 13.67
CCEE 1,222.9 1,669.9 -
3
2014 2013
142.47 121.37
682.58
364.20
189.25
139.61
Average PriceR$ / MWh
CONTRACTS CCEE
2014 2013
1,223 3,561
17,130 14,694
8,93714,037
27,290
32,292
Volume TradedGWh
CCEE Free Market Regulated
-15.5% 35.6%
ENERGY SALES
4
19.4%
28.3%Day 30
10
20
30
40
50
60
70
80
90
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011
2012
2013
2014
2015601.21
388.484th week
-
100
200
300
400
500
600
700
800
900
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2011
2012
2013
2014
2015
Fonte: CCEE – Câmara de Comercialização de Energia Elétrica
Average Price (R$) PLD 2014 2013
Average Year 688.89 263.06
SUBSYSTEM SOUTH EAST/ MIDDLE WEST
Reservoir Levels Average Price PLD R$/MWh
5
2014 2013
316 363
1,386 1,331
1,702 1,694
Manageable Non Manageable
0.4%
81.4%
18.6%
78.6%
21.4%
Change% Personnel -8.1% Outsourced Services -10.0% Compensat. Water Resourc. -14.2% Transmission Service Charges +8.3%
4.1%
-13.0%
(R$ million) OPERATING EXPENSES
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4Q14 4Q13 2014 2013
1,657
852
2,360
2,210
729 796
4,017
3,063
82.7%
83.7%
78.4%
79.9%
-8.4%
31.2% (R$ million) ADJUSTED EBITDA AND MARGIN
EBIT / EBITDA - R$ thousand 4Q14 4Q13 Chg. 2014 2013 Chg.
Net Income (1,147,758) (990,558) 15.9% 560,139 (195,346) -
Tax and Social Contribution (Net) (431,044) (456,725) -5.6% 322,391 (56,488) -
Financial Result 36,476 104,458 -65.1% 132,284 422,082 -68.7%
EBIT (1,542,326) (1,342,825) 14.9% 1,014,814 170,248 496.1%
Depreciation 158,443 159,704 -0.8% 642,499 681,939 -5.8%
EBITDA (1,383,883) (1,183,121) 17.0% 1,657,313 852,187 94.5%
Contingent asset provision – HPP Três Irmãos - 1,811,718 - - 1,811,718 -
Impairment provision 1,997,296 - - 1,997,296 - -
Provision for Legal Risks 115,935 167,336 -30.7% 362,678 398,688 -9.0%
Adjusted EBITDA 729,348 795,933 -8.4% 4,017,287 3,062,593 31.2%
Adjusted EBITDA Margin 79.9% 83.7% -3.9 p.p. 82.7% 78.4% 4.3 p.p.
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R$ million 2014 2013 Var Period Quotation US$ (end of period)
Income/ (Expenses) R$ million
FINANCIAL REVENUES 259.0 131.1 97.6% 2013 2.3426
UPDATE - FOREIGN CURRENCY ACQUISITION 63.1 45.5 38.8% 1T14 2.2630 21.5
DEBT CHARGES AND OTHER FINANCIAL EXPENSES (182.7) (258.9) -29.5% 2T14 2.2025 23.7
MONETARY VARIATION (126.0) (132.4) -4.9% 3T14 2.2297 (72.3)
FIN. RESULTS BEFORE EXCHANGE VARIATION (49.6) (260.3) -80.9% 4T14 2.6562 (55.5)
EXCHANGE VARIATION (82.6) (161.8) -48.9%
FINANCIAL RESULT (132.3) (422.1) -68.7% Accumulated 2014 (82.6)
FINANCIAL RESULT
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12/31/2014 12/31/2013
74.4% 74.6%
25.6%25.4%
2.780 3.000
Local Currency Foreign Currency
-7.3%
(US$ 326 million)
(US$ 268 million)
2014 Availabilities: R$ 2,428 million Net Debt: R$ 352 million
FINANCIAL DEBT
(R$ million)
9
2015 2016 2017 2018 After 2018
8% 29% 42% 97% 96%
92%
71%58%
3% 4%
1,600
523
366
157 134
Foreign Currency Local Currency
DEBT PROFILE – MATURITY 31/December/2014 - R$ 2,780 million
(R$ million)
Series 8 Bonus R$ 978 million
10
2013 Balance 2,317 Position Adjustment 342
Net Provision and Reversals 56
Payments (54)
2014 Balance 2,661
(R$ million)
PROVISION FOR LEGAL RISKS
11
DIVIDENDS AND CAPITAL RESERVES
2014Annual net income 560,139
Destinations -
Legal reserve (28,007)
Profit reserve to accomplish 33,405
Accomplishment of Equity adjustment (depreciation) 183,356
Accomplishment of Equity adjustment 1,318,215
Total 2,067,108
Statutory reserve (293,913)
Annual Adjusted income (balance for dividend distribution) 1,773,195
Interest with no own capital already distributed (193,000)
Payable dividends 1,580,195
Payable until 05.31.2015 790,097
Payable until 09.30.2015 790,097
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4Q14 4Q13 Chg. 2014 2013 Chg.
Net Operating Revenue 912.9 951.2 -4.0% 4,856.0 3,904.1 24.4%
Operating Expenses (399.4) (433.9) -7.9% (1,702.0) (1,694.5) 0.4%
Financial Results (36.5) (104.5) -65.1% (132.3) (422.1) -68.7%
Adjusted EBITDA 729.3 795.9 -8.4% 4,017.3 3,062.6 31.2%
Adjusted EBITDA Margin 79.9% 83.7% -3.9 p.p. 82.7% 78.4% 4.3 p.p.
Net Income (1,147.8) (990.6) -15.9% 560.1 (195.3) -
Dividends and Interest on Equity 1,773.2 1,044.0 69.8%
OPERATIONAL AND FINANCIAL HIGHLIGHTS
(R$ million)
13
2014 EARNINGS RELEASE CONFERENCE CALL
QUESTIONS & ANSWERS
INVESTOR RELATIONS
IR Contact: +55 11 5613 3626 and +55 11 5613 3644
http://ri.cesp.com.br