Download - Apre 4 t05
2005 ResultsFebruary 17, 2006
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Highlights Highlights -- 20052005
1Tri05
2Tri05
3Tri05
4Tri05
• Corporate Sustainability Index (ISE) – 12/01/2005
• Ratings increased - 12/13/2005 - S&P and Fitch (local credit from “BB+” to “BBB”)
• 9th issuance of debentures – R$ 250.0 million (12/26/2005)
• Loss of R$ 184,4 million in 2005 (extraordinary events)
• Tariff Adjustment – 2.12% (07/04/2005)
• MGSP Provision of R$ 346.4 million
• Payment of AES Tietê PIS/Cofins taxes increase – R$ 43.7 million
• 8th issuance of debentures – R$ 800.0 million (09/27/2005)
• Ratings increased - 06/14/2005 - Fitch (local credit from “BB” to “BB+”)
• Issuance of R$ 474.0 million in bonds denominated in Reais (06/28/2005)
• Completion of Tariff Review 2003 – Additional value of R$ 106.9 million
• Receiving of the third tranche of the Rationing Loan amounting R$ 243.3 million (01/11/2005)
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Consumption in GWhConsumption in GWh
NOTE: Charts do not consider own consumption
2,6753,304
9,4368,670
11,258
4,865
2,598
9,593
7,580
11.863
Residen
tial
Industrial
Commercial
Other
TUSD
2004 2005
5.4%
-12.6%1.7%
-21.4%
32,66835,343 36,499
31,634
Market Billed Market Billedwith TUSD
2004 2005
81.9%
3.3%-3.2%
In 2005, AES Eletropaulo’s total market grew 3.3%
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Energy SupplyEnergy Supply
• Initial Contracts ended in 2006
2004 2005 2006 (e)
Proinfa
Auction
Other bilateral contracts
Bilateral contracts withTietêInitial contracts
Itaipu
2004 2005 2006 (e)
Proinfa
Auction
Other bilateral contracts
Bilateral contracts withTietêInitial contracts
Itaipu32%32% 31%31%
51%51%
19%19%
15%15%
21%21%
2%2%
27%27%
2%2%
GWhGWh
32%32%
29%29%
2%2%
36%36%
1%1%
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Loss evolution
12.91%13.53%13.23%
7.31%7.93%7.63%
2003 2004 2005
Total Commercial
Collective Rate
99.03%
97.45%98.48%
2003 2004 2005
Operating Operating Loss and Collective Rate Loss and Collective Rate -- 20052005
6
186
297355
300
49
32
33
2003 2004 2005 2006(e)
Capex Self Financed
Total 354.8
Total Recorded 403.6
Capex - 2005
153.9
33.5
Loss Recovery 21.0
Personnel 77.4
Others 30.0
Customer Service and System Expansion
Maintenance
Self Financed 48.8
Capex 2005 Capex 2005 R$ millionR$ million
Information Tecnology 39.0
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Results 2005Results 2005
Net Revenue
R$ million 2004 2005 2005 X 2004
Operating Expenses
Adjusted EBITDA
Financial Income(Expenses)*
Extraordinary ItemsNet of Tax Effects
Net Income (Loss)
EBITDA
7,394.1
(6,340.5)
1,322.3
1,722.7
(504.0)
(341.0)
5.6
8,296.8
(7,476.4)
1,116.8
1,933.4
(368.2)
(340.9)
(184.4)
12.2%
17.9%
26.9%
N.A.
12.2%
N.A.
15.5%
Margin 23.3% 23.3%
(*) Considering consolidated results
Average Tariff Adjustment of 2.12%Completion of Tariff Review 2003 (R$ 106.9 million)Increase of 3.3% in total market (captive + free consumers)
Reversal of allowances in the amount of R$ 72 million in 2Q05 due to Pis/Pasep statute of limitations
Extraordinary allowances in the amount of R$ 523 million (MGSP and RTE)
Increase of 4% in energy purchase expensesIncrease of 32% and 29% in CCC and CDE expenses
respectivelyEnergy Efficiency Program (PEE) – aditional expense of R$ 54
million
Aditional revenue of R$ 121.8 million in 4Q05 due to alterationin RTE remuneration rules
Reversal of allowances in the amount of R$ 98 million in 2Q05 due to Pis/Pasep statute of limitations
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EBITDA
Adjusted EBITDA
Debt Confession IIa(CESP Foundation)
2005
Increase 12.2%
Adjusted EBITDA
RTE
R$ 1,116.8
R$ 46.4
R$ 1,933.4
R$ 334.9
Adjusted EBITDA Adjusted EBITDA R$ millionR$ million
EBITDA
Debt Confession IIa(CESP Foundation)
2004
RTE
R$ 1,322.3
R$ 88.2
R$ 1,722.7
R$ 312.1
PIS – Reversal of allowances
R$ (72.0)
Provision - MGSPR$ 330.5
Provision - RTER$ 176.9
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EBITDA
4th quarter 2005
Increase 38.9%
RTE
R$ 290.0
R$ 5.7
R$ 556.2
R$ 83.6
Adjusted EBITDA Adjusted EBITDA R$ millionR$ million
EBITDA
3rd quarter 2005
RTE
R$ (27.5)
R$ 12.1
R$ 400.3
R$ 85.3
R$ 330.5 Provision - RTER$ 176.9
4Q05 results accounted a profit of R$ 19.6 million, versus a loss of R$ 324.1 million in 3Q05 and a profit of R$ 17.5 million in 4Q04
Debt Confession IIa(CESP Foundation)
Provision - MGSP
Adjusted EBITDA Adjusted EBITDA
Debt Confession IIa(CESP Foundation)
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R$ (228.3) million
R$ (28.8) million
R$ (340.1) million
R$ (36.4) million
R$ (53.8) million
R$ (46.1) million
R$ (28.9) million
R$ (31.5) million
Impacts on results Impacts on results –– 20052005
Provision – Agreement signed with MGSP
Increase PIS/COFINS’s taxes – Agreement with AES Tietê
Extraordinary Items (CVM 371)*
RTE Provision – Recovery term
Change on calculated rules – R&D and Energy Efficiency
Provisions – Other Municipal Governments
Differed Amortization – Debt downpayment
Others
Total Impacts on Total Impacts on EletropauloEletropaulo’’ss Results Results
Impact Net of Taxes Effects (34%)
*2006 will be the last year which Eletropaulo’s results will be affected by the remaining recognition of extraordinary items of approximately R$340 million – off balance debt with the Pension Fund
R$ (793.9) million
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ConsolidatedConsolidated IndebtednessIndebtednessR$ millionR$ million
71%
23%
29%
77%
27%
73%
0%
50%
100%
2003 2004 2005
ST LT
1,424.5 1,778.8 2,064.6
762.5
1,102.0 788.2
2,222.52,402.73,090.8
2003 2004 2005
FCESP CVA/RTE Private Creditors
5,278 5,284 5,0755,278 5,284 5,075
ST vs LT Debt Evolution
• Hedge - 85% of foreign currency debt is hedged
0 . 19 %
4 0 . 7 0 %
5 . 9 8 %
10 . 8 4 %
4 2 . 2 9 %
Others – R$
IGP-DI
CDI/Selic
Libor
Fixed
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Avg Cost and Duration - Total Debt
100.7%
105.6%
Dec-2004 Dec-2005
Downpayments made to banks:
• 3rd Tranche of Rationing Loan: 76% R$184,472,275
• Bonds: 50% R$237,030,000
• Debentures 8th: 90% R$720,000,000
• Debentures 9th: 90% R$225,000,000
• Cash sweep R$96,437,604
Total R$ 1,462,939,879
2005 Debt Issuances2005 Debt IssuancesFinancial RestructuringFinancial Restructuring
2.86 years
3.69 years
BONDS (June 2005)
DEBENTURES 8th issuance (September 2005)
DEBENTURES 9th issuance (December 2005)
• Principal: R$ 474 million
• Tenor: 5 years
• Interest rate: 19.125% p.a.
• Interest and Amortization:
• semiannual interes, bullet principal
• Principal: R$ 800 million
• Tenor: 5 years
• Interest rate: CDI +2.90% p.a.
• Interest and Amortization:
• Semiannual interest, Annual Principal
• Grace period: 23 months
• Principal: R$ 250 million
• Tenor: 8 years
• Interest rate: CDI + 2.5% p.a.
• Interest and Amortization:
• Semiannual interest, Annual Principal
• Grace period: 71 months
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ConclusionConclusion
• The loss of R$ 184.4 million in 2005 is due mainly to extraordinary events
• Bonds and Debentures issuances in 2005 resulted:
• In the reduction of Total Debt average cost from 105.6% of CDI to 100.7% of CDI
• In the increase of Total Debt average life from 2.86 years to 3.69 years
• In the increase of Eletropaulo’s ratings:
• Local Credit: BB to BBB
• Foreign Credit: B to B+
• Operating Highlights: Loss reduction and better collective rate in 2005
• Perspectives:
• Results: • 2006: the 2005 allowances won’t be recurrent
• 2007: Eletropaulo’s results won’t be affected by the remaining recognition with pension fund obligations of approximately R$340 million
• Financial Aspects:
• Substitution of the outstanding private creditors’ debt for new loans with more attractive terms
• Eletropaulo expects to benefit with the decreasing trend of Selic Rate (42.3% of total debt is accrued by Selic)