Download - Apre 4 t06
2006 Results2006 Results
March 08, 2007March 08, 2007
Highlights
Brasiliana Reorganization
Debt Profile
Cash Flowg
Market Capital Markets
Operating Performance
Financial Performance
Conclusion
HighlightsHighlights
1Q06• Board of Directors has 20% of independent members (new rules of BOVESPA’s Level 2)
HighlightsHighlights
• Issuance of R$ 300.0 million in CCB – early liquidation of the remaining part of therenegotiated debt (05/12/2006)2Q06
• Tariff Adjustment – 11.45% (07/04/2006)
• Increase in the maturities of FCESP Debt to 2022 - cash savings of approx. R$ 633 milliontil th d f 2008
3Q06until the end of 2008
• Companhia Brasiliana de Energia´s reorganization
• Secondary Offering of Eletropaulo shares - (09/25/2006)• Total offering size: R$ 1 3 billionTotal offering size: R$ 1.3 billion• 15.8 billion class B preferred shares (38% of Eletropaulo´s total capital), with 100% of tagalong• Free-float increased from 18.3% to 56.2%
• Adjusted EBITDA of R$2,490.8 million in 2006, 16.7% higher than 2005
• Net Profit of R$ 373.4 million in 2006, compared to a loss of R$155.5 million in 2005
• Reduction of 19.8% in Net Debt
4Q06
3
• Ratings increased (BB- in international scale and A in national scale)
• Proposed Dividends of R$ 130.4 million (R$ 2.94/’000 common shares and R$ 3.23/’000preferred shares)
Brasiliana ReorganizationBrasiliana ReorganizationBrasiliana ReorganizationBrasiliana Reorganization
• Reduction of Brasiliana’s and holdco’s indebtedness from R$ 2,044.0 million (principal as of 09.30.2006) to R$ 800.0 million
BNDESAES Holdings
Brasil Ltda
C 49 99% C 50 01%
Cia. BrasilianaR$ 800 million
C 49.99%
P 100.00%
T 53.84%
C 50.01%
P 0.00%
T 46.15%
De EnergiaR$ 800 million
C 98.26%C 100.00% C 100.00%C 71.27%
AES Uruguaiana
Inc (Cayman)AES ELPA
C 98.26%
T 98.26%
C 100.00%
T 100.00%
C 100.00%
T 100.00%P 32.23%
T 52.51%
P 7.38%
T 4.44%( y )
C = Common SharesP = Preferred Shares
C 100.00%
T 100.00%
C 77.81%
P 0.00%
T 30.97%
4
AES Infoenergy EletropauloAES Uruguaiana
Empreend. S.A.AES Tietê S.A.
P Preferred SharesT = Total
Consumption Comparison in GWhConsumption Comparison in GWhConsumption Comparison in GWhConsumption Comparison in GWh
Captive Market Evolution (GWh)
7,792• Excluding all free consumers from previousperiods, the captive market increased 5.1% in2006.
,7,4367,3707,3607,221
6,9047,166
7,528
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
4 6%
11,86312,687
31 634
36,49938,183
31 656
6.9% 0.1%
4.6%
3.2%
4 865
9,593
7,580
,
6,527
9,898
6,606
31,634 31,656-12.9%
34.2%
-5.1% 4,865
2,598 2,465
5.1%
5NOTE: Charts do not consider own consumption
Residential Industrial Commercial Public Sectorand Others
FreeConsumers
2005 2006
Billed Market Total Market
Free ConsumersFree ConsumersFree ConsumersFree Consumers
% Total Market (2006)
80.9%18.5%
Captive Consumers
Free Consumers
0.6%
Free Consumers
Potentially Free Consumers
Net Revenue with TUSD X Free Consumers’ Consumption
467 1
4,865
6,527134.4
467.1367.3
2,675
6
2004 2005 2006Free Consumers (GWh) TUSD (R$ million)
Operating HighlightsOperating HighlightsOperating HighlightsOperating Highlights
Collection Rate - % over Gross RevenueLoss Evolution* (%)
97.5 99.0 99.1+0.1%
7.0 6.4 5.5
13.5 12.912.0
-7.1%
5.5
6.5 6.5 6.5
2004 2005 20062004 2005 2006
Technical Losses Commercial Losses
Fraud Combat and Clandestine Connections (2006):
• 443 thousand inspections and 49 thousand frauds detected
Collection Rate (2006)
• Public Sector: 104.2%443 thousand inspections and 49 thousand frauds detected
• 80 thousand clandestine connections regularized• Private Sector: 98.8%
Cuts and Reconnections – monthly average (2005 x 2006)
7
• Cuts – increase from 92 thousand to 116 thousand
• Reconnections – increase from 55 thousand to 74 thousand
* Due to the improvement in the calculation criterion of Technical Losses, the Company altered its value retroactively from 5.6% to 6.5%, however without changing total losses
Investments 2006Investments 2006R$ illiR$ illiR$ millionR$ million
4958330378
404 Investments 2006 (R$ 377.7 million)
32
3358
217 15%
Customer Service and SystemExpansion
36632
319355
297
186
37%8%
15% Expansion
Maintenance
Loss Recovery
2003 2004 2005 2006 2007 (e)14%11%
14%Information Technology
Others
Capex Self Financed
Self Financed
8
ResultsResultsR$ illiR$ illiR$ millionR$ million
Gross Revenue Operating Expenses
-7.6%
4 392 44,712.5
6,903.97,471.3
2 856 9 2 996 6
11,350.811,153.7
+1.8%
724.9805.7
1 137 9
4,392.4
1 105 11,848.8 1,830.3
+4,4% -1.0%2,856.9
8,296.8 8,354.2
2,996.6
2,839.7 2,964.8
+4.4%
1,705.82,033.9
461.7555.3230.8188.4
1,137.91,105.1
4Q05 4Q06 2005 2006Operating Expenses Sector Charges Electricity + Transport
775.2 781.1
2,064.5 2,183.7
4Q05 4Q06 2005 2006Net Revenue Deductions from Operating Revenue p g p g y p
• Increases in relation to 4Q05 and 2005
are explained by:
• Reduction of 7.6% in 2006:• Reduction of 5.8% in energy purchase due to
the change in mix (end of Initial Contracts)
Net Revenue Deductions from Operating Revenue
• The application of the 11.45% average tariff
adjustment since July 4th, 2006
• Total market evolution:
the change in mix (end of Initial Contracts)
• Reduction of 45.0% in Other Expenses due toextraordinary expenses posted in 2005 and2006:
• R$ 451 3 million 2005
9
• 5.6% higher than 4Q05
• 4.6% higher than 2005
• R$ 451.3 million – 2005• R$ 158.6 million – 2006
EBITDAEBITDAR$ illiR$ illi
2005 x 2006
R$ millionR$ million
4Q05 x 4Q06
EBITDA
RTE
290.8
83.6
433.1
83.4
1,121.9
334.9
1,763.4
326.8
Pension Fund 60.3
SP Municipal Government
60.4 241.8 242.0
0 0 330.5 0
0
Provision - RTE 176.9
0
1.5
(72.0)
176.9
0
37.7
PIS/Pasep taxes´ reversion
ADJUSTED EBITDA 611.6
Provision - Contingencies 0
578.4
0
2,134.0
0
2,490.8
120.9
611.6
ADJUSTED EBITDA MARGIN 29.6%
578.4
26.5%
2,134.0
25.7%
2,490.8
29.8%
10
Increase of 16.7%Reduction of 5.4%
Consolidated Financial ResultConsolidated Financial ResultR$ illiR$ illiR$ millionR$ million
4Q05 4Q06 2005 2006
The financial result of 2006 is explained by:Financial Result
(41.5)(42.8)
4Q05 4Q06 2005 2006 • The reduction of 39.0% in financial revenues• Additional revenues of R$ 193.6 million in 2005 due to
the change in RTE balance compensation rules
• The reduction of 25 2% in financial expenses-2.9%
(342.3)(329.6)
• The reduction of 25.2% in financial expensespartially compensated the reduction in revenuesin the financial result
• reduction of debt net total cost
+3.9%
(342.3)( )
Debt – Total Cost (Net) Average Cost and Average Life5 485 44
(120 4)(130.2)
(153.7)(160.4) 104.28%97.27%101.18%
91.61%88.22%
5.485.44
3.903.69 3.81
(104.2)
(120.4) 3.69
11
4Q05 1Q06 2Q06 3Q06 4Q06
CDI index at the end of the period
4Q05 1Q06 2Q06 3Q06 4Q06
Avg Cost - % CDI* p.a. Avg Life - years
Net ProfitNet ProfitR$ illiR$ illiR$ millionR$ million
• The Company proposes distribution of dividends at the maximum amount allowed by theBrazilian Law, after absorbing the accumulated losses up to 2005:
R$ 2 94/’000 common shares• R$ 2.94/’000 common shares• R$ 3.23/’000 preferred shares
373.4
Proposed Dividends 2006 (R$ million)
99.0
+728.3% Accumulated Losses 2005 (262.1)Reversal of expired dividends 3.8
Proposed Dividends 2006 (R$ million)
12.0
4Q05 4Q06 2005 2006
Net Profit 2006 373.4
Net Balance 115.0 Legal Reserve (5%) (5.8)Realization of Revaluation Reserve 21 1
(155.5)
Q Q Realization of Revaluation Reserve 21.1
Dividends 130.4
12
Consolidated DebtConsolidated DebtR$ illiR$ illiR$ millionR$ million
Short Term x Long Term Gross Debt – 2006
9 3%-19.8%
Fixed Rate11 6%
IGP-DI50.0%
21% 20% 20%27%3,658
4,562
3,6584,031
ion
4,800 4,830 4,8305,075
-9.3%
Libor1.6%
11.6%
CDI/Selic36.8%
79% 80% 80%73%
R$ m
ill
• Pension Fund - R$ 2,415 million• Private Creditors - R$ 2,040 million• BNDES - R$ 375 million
3Q06 4Q06 2005 2006
LT ST Net Debt
• Gross Debt: reduction of 4.8% (R$ 245.2 million)
Debt Highlights – 2006 Ratings Evolution – Fitch Ratings
National Scale
BBB
AOct ‘06
National Scale
BBB
AOct ‘06% ( $ )
• Net Debt: reduction of 19.8% (R$ 904.5 million)
• Foreign Currency: decreased from 6.0% to 1.6% of total BB
BBB
BBB+
B +Dec ‘05
Jul ‘06
Oct ‘06
BB -
BB
BBB
BBB+
B +Dec ‘05
Jul ‘06
Oct ‘06
BB -
13
debt
Last Update: 10/05/2006
International ScaleB -
B +Oct ‘04
International ScaleB -
B +Oct ‘04
Amortization ScheduleAmortization ScheduleP i i l 12/31/2006P i i l 12/31/2006 R$ illiR$ illiPrincipal 12/31/2006 Principal 12/31/2006 -- R$ millionR$ million
1,273
917 881
469
153
1,27325
47
628
881
729
378
147 153112
231
153 153
159
25 25346
440 441
291 291 263
234
23
268 263138 138 111
378
212
153 153 153
Pre- Payments 2007 2008 2009 2010 2011 2012 2013 2014-22payments
20062006
R$ (w/out FCESP) FCESP BNDES US$*
14* Exchange Rate in 12/31/2006 - US$ 1.00 = R$ 2.1380
Managerial Cash FlowManagerial Cash FlowR$ illiR$ illiR$ millionR$ million
R$ million 1Q06 2Q06 3Q06 4Q06 2006
Initial Cash 492 358 619 767 492
Operating Cash Generation 687 653 725 741 2,806
Investments (101) (88) (75) (85) (349) ( ) ( ) ( ) ( ) ( )
Net Financial Expenses (194) (85) (176) (91) (545)
Net Amortization (245) (45) (158) (111) (559)
Pension Fund Expenses (134) (108) (85) (55) (382) p ( ) ( ) ( ) ( ) ( )
Income Tax (147) (67) (83) - (297)
Free Cash Flow (133) 261 148 399 675
Final Cash 358 619 767 1 166 1 166Final Cash 358 619 767 1,166 1,166
• Operating Cash Generation – reduction of operating costs and expenses along the year
• Financial Expense – semi-annual payments of interests in 1st and 3rd quarters (bonds and 8th issuance of debentures)
• Net Amortization – Issuance of R$ 300 million in CCB on May and early liquidation of the renegotiated debt in 2004
• Pension Fund Expenses – renegotiation of debt contracts in 3Q06
• Income Tax – Write-off of R$ 369.4 million (provision MGSP) made possible to take the tax benefit
15
Capital MarketsCapital MarketsCapital Markets Capital Markets
ELPL6 (Preferred Class B)
PricePrice VolumeVolumeELPL6 (Preferred Class B)
• Rose 28.2% since 09/21/2006 (pricing)
ELPL5 (Preferred Class A)• Rose 2.5% in 2006
• The daily average traded volume of preferred shares in 2006 is 4.3 times higher than 2005’s
IBOVESPA• Rose 32.7% in 2006
Daily Average Volume - preferred shares (R$ thousand)
18 024 9
ELPL5 x ELPL6 (R$/'000 shares)
114 0118.0122.0
18,024.9
+331.5%86 090.094.098.0
102.0106.0110.0114.0
4,177.570.074.078.082.086.0
31/20
0531
/2006
28/20
0631
/2006
30/20
0631
/2006
30/20
0631
/2006
31/20
0630
/2006
31/20
0630
/2006
31/20
06
16
2005 200612/31 1/3
12/2
8
3/31
4/30
5/31
6/30
7/31
8/31
9/30
10/31
11/30
12/31
ELPL5 ELPL6
ConclusionConclusionConclusionConclusion
• Reversal of accumulated losses of R$ 262.1 million in 2005 to a net profit of R$ 373.4
illi i 2006million in 2006
• Proposed dividends of R$ 130.4 million (R$ 2.94/’000 – common shares and R$
3.23/’000 – preferred shares)3.23/ 000 preferred shares)
• 16.7% increase of Adjusted EBITDA, going from R$ 2,134.0 million in 2005 to R$
2,490.8 million in 2006
• 7.6% reduction in Operating Expenses – lower volume of extraordinary expenses in 2006
• Reduction of 19.8% in consolidated net debt and of R$ 228.3 million in foreign currency
debt
• Increase of total debt’s average life from 3.7 years to 5.5 years
• Ratings increased by Fitch Ratings and S&P
• Free float increased from 18.3% to 56.2% of the total capital
17
Earnings Results 2006
March 08, 2007
18
Hi hli ht CHighlights
Operating Performance
Capex
Expansion Requirement
Bilateral Contract Capital Markets
Financial Performance Conclusion
19
HighlightsHighlights -- 20062006Highlights Highlights -- 20062006
1Q06Jan,06: 100% of assured energy is sold through the bilateral contract with Eletropaulo1Q06 contract with Eletropaulo
2Q06Best Public Utility in 2005 according to Exame Magazine’sMelhores e Maiores Ranking
3Q06Jul,06: Readjustment of price of bilateral contract withEletropaulo in 0 9%
$
3Q06 Eletropaulo in 0.9%Dividend payment of R$ 305.5 millions relative to the earningsobtained in 1H06
Dividend and interest on equity of R$ 143 million payment relative to the earnings obtained in 3Q06EBITDA reached R$ 1,096.9 million, 16.8% higher than 2005Net Income of R$ 614.1, an increase of 10.4% in comparison with
4Q06
20
Net Income of R$ 614.1, an increase of 10.4% in comparison with 2005Proposal of R$ 165.2 million of dividends to be paid, relative to 4Q06 results
Energy BalanceEnergy Balance –– 20062006Energy Balance Energy Balance 20062006
Energy Generated x Billed Energy in GWh
Caconde344.6
Euclides463.8
2.8%
3.7%
Limoeiro132.0
Água Vermelha7,498.1 Eletropaulo - Bilateral
11 107 789.0%
60.1%
1.1%
Bariri565.6
Barra Bonita495.2
,
MRE/CCEE*
11,107.7TOTAL
12,474.6
BILLED
12,474.6
4.0%
4.5%
11 0%Ibitinga655.9
565.6
Promissão964 2
MRE/CCEE*1,366.65.3%
7.7%
11.0%
964.2Nova Avanhandava
1,323.5Mogi Guaçu
31 7
10.6%
0.2%
21
31.7
*After deducing own consumption and transmission losses, the difference is addressed to the Energy Reallocation Mechanism – MREand to the Chamber of Energy Marketing – CCEE..
Generation and ReliabilityGeneration and ReliabilityGeneration and ReliabilityGeneration and Reliability
In 2006 generation was 12% over the assured energy
Plant Period Without Accidents –Years
Ibiti 18 5gy
Failure Index (FI) and Equivalent Availability Factor (EAF) figures exceed the requirements established by the National Eclectic Energy
Ibitinga 18.5Mogi-Guaçu 11.9Nova Avanhandava 9.0Água Vermelha 8.4
Agency - ANEEL: 2.9 for (FI) and 92.8% for EAF
Average of 7 years of operations without accidents requiring removal of personnel from the worksite
Limoeiro 6.3Barra Bonita 6.3Promissão 4.8Caconde 3.7
worksite Euclides da Cunha 3.3Bariri 1.0
123% 120% 123%
Failure Index x AvailabilityFailure Index x AvailabilityGenerationGeneration
2.82 5
3.0
93.0%92.6%90.9%
96.1%94.2%
96.8%97.2%112%115%
123% 120% 123% 117%
81%98%
109% 107%
2.2 2.32.5
1.6 1.71,617 1,619 1,581 1,502
1,0401,258 1,392 1,363 1,467 1,424
22
2000 2001 2002 2003 2004 2005 2006
Failure Index - FI Equivalent Availability Factor - EAF
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Generation - MW Average Generation / Assured Energy
Bilateral ContractBilateral ContractBilateral ContractBilateral Contract
Starting in January/2006: 1,268 MW (100% assured energy) is sold through the bilateral contract with Eletropaulobilateral contract with Eletropaulo
Price adjusted by 0.9% in July, based on IGP-M variationMaturity: December, 2015 Collateral: receivablesCollateral: receivables
October/2003: amendment extending its term of effectiveness until June/2028In August/2005 ANEEL published the vetoing to the amendment, consequently Eletropaulo has brought a lawsuit against ANEEL’s decision, which is now awaiting judgment on merits by
Average Revenue Average Revenue –– R$/ MWhR$/ MWh
as b oug t a a su t aga st s dec s o , c s o a a t g judg e t o e ts bya trial court
133.9
73 6
94.4
119.6
45.9 48.8 54.0
73.6
23
2000 2001 2002 2003 2004 2005ContratoBilateral
Results Results R$ millionR$ million
Net RevenueNet Revenue Costs and Operational ExpensesCosts and Operational Expenses1.387
1 2201,387
1 220357345
1.22014%14%
8%8%
1,22014%14%
8%8%8%8%46
4777 3518 38
68
3%3%
132
346321
8%8%
346321
8%8%8%8%
64 67
79 103
6168
23 3219
585
141011 5 8
85
132
--36%36%
2006 x 2005
Power Purchase Others* Operational Expenses
RoyaltiesProvisions Depreciation
2005 20064T05 4T06 2005 20064Q05 4Q06
64 67
2005 2006
23 3216 16
4Q05 4Q06
Volume of energy sold to Eletropaulo 33.8% higher – from 948 MW to 1,268 MW
2006 x 2005Power Purchase: raise of R$ 26.1 million on transmission fees as a greater volume was sold to Eletropaulo
July/2006: Price readjustment of bilateral contract (0.9%)
Others: the percentage of net revenues to be applied to Research & Development was raised from 0.25% to 1% Allowance of R$ 58.3 million in 2005 for the
24
principal and interest on RTE (Special Price Review) compared to R$ 17.7 million for RTE’s monetary adjustment in 2006
*Others: R&D, fiscalization fees, insurance, hydro way and others
Results Results R$ millionR$ million
EBITDAEBITDA
1,097
79.1%77.0%
17%17%
80.2%
939
205 278
63.9%
2005 20064Q05 4Q06
36%36%
Greater volume of energy sold through bilateral contract - from 948 MW to 1,268 MW
July/2006: price readjustment of bilateral contract (0.9%)
Lower operating allowances
25
Lower operating allowances
Results Results R$ millionR$ million
Financial ResultsFinancial Results Net IncomeNet Income4Q05 4Q06 45 6%45 6%
774Q05 4Q06 2005 2006
614
45,6% 44,3%
10%10%
47,7%45,2%
614
45.6% 44.3%
10%10%
614
10%10%10%10%
47.7%45.2%
(35)
(64)
614556
165145
14%14%614556 614556
165145
14%14%
165145
14%14%14%14%
2006 x 2005: 2006 x 2005:
(111)72%72% Lucro Líquido Margem Líquida
2005 20064T05 4T06Net Income Net margin
2005 20062005 20064Q05 4Q06
Accrual by Selic Interest rates on balance of RTE receivables of R$ 37.0 million in 2005 (4Q05) according to Annel requirement,
d t R$ 17 7 illi i 2006 (R$ 2 9
10% higher net income
Lower margin due to financial resultscompared to R$ 17.7 million in 2006 (R$ 2.9 million in 4Q06) 4Q06 x 4Q05
14% higher net income favored by reduction on costs and operational expenses
26
Debts impacted by IGP-M variation
DebtDebtDebtDebt
Cash availability = R$ 690.3 million (December/2006)
R$ million
Creditor Amount Maturity Terms Collateral
Eletrobras 1,364.8 May/13 IGP-M + 10% p.y. ReceivablesFunCesp III 20.7 Sep/27 IGP-DI + 6% p.y. Receivables
Net Debt Net Debt –– R$ billionR$ billion
2 0x3.2x3.3x3 0x
1.31.1 1.11.1
1.40.6x
1.4x2.0x3.0x
0.7x
0.70.7
27
2000 2001 2002 2003 2004 2005 2006Net Debt Net Debt / EBITDA
CAPEXCAPEXCAPEXCAPEX
Capex – 2006: R$ 46.5 million
Capex estimated - 2007: R$ 75 5 million:
Capex Capex –– 2006200612.5%Capex estimated - 2007: R$ 75.5 million:
R$ 22.4 million: Construction of three small hydropower plants already belonging to the Company and located in the interior of São Paulo State. Together, they will boast an installed capacity
55 4%
2.0%
29 5%
12.5%
of 8MW. The remaining will be basically used to restore the capacity of and upgrade equipment:
Bariri: Completion of the capacity restoration and
55.4%
0.5%
29.5%
Equip. Hidroway PCH Environment IT
Bariri: Completion of the capacity restoration and upgrading of Generating Unit #3Promissão: Capacity restoration and upgrading of Generating Unit #2
Capex Capex –– R$ millionR$ million
Nova Avanhandava: Capacity restoration and upgrading of Generating Unit #1Reforestation 46.5
75.5
Investment in Small Hydropower PlantsAcquisition of License to build three small hydropower plants in the State of Rio de Janeiro with a total installed capacity of
30.5
12.421.9
27.5
28
in the State of Rio de Janeiro, with a total installed capacity of 52 MW and average 28.97 MW of assured energy, still subject to the fulfillment of certain conditions and to ANEEL’s approval – investment estimated in R$ 225 million in 2 years
2002 2003 2004 2005 2006 2007E
Capital MarketsCapital MarketsCapital MarketsCapital Markets
AES Tietê AES Tietê –– Base 100 (dec/05)Base 100 (dec/05) Average dailyAverage dailytrading volume (R$ thousand)trading volume (R$ thousand)
140
120
130
140
133
122124
69%69%
4.196,9
69%69%69%69%
4,196.9
GETI3
90
100
110
1.624,5 1.619,7
1.810,2
1,624.5 1,619.7
1,810.2 GETI3
GETI4
Ibovespa GETI3 GETI4
90dec-05 mar-06 jun-06 sep-06 dec-06 2005 20062005 2006
Remuneration Paid vs. Dividend YieldRemuneration Paid vs. Dividend Yield
R$ 614.1 million 11.4%12.0%
2006
R$ 276 9 million
R$ 539.0 million 13.2%
13.4%
13.2%
2004
2005
29
R$ 276.9 million12.3%
2004
Common Preferred
Expansion RequirementExpansion RequirementExpansion RequirementExpansion Requirement
Requirement: increase installed capacity by at least 15% (approximately 400 MW), within a period of eight years, starting from the date of execution of its Concession Contract in December, 1999y g
Requirement was established by the Privatization Documents and reflected in the “Share Purchase Agreement”
It b li h d th hIt can be accomplished through:increasing the installed capacity in the State of São Paulo; or energy purchasing from new plants, located in São Paulo, through long term agreements (at least 5 years)
Restriction to increase the capacity:no hydro resource available in the Sate of São Pauloenvironmental restrictions to thermal plants in São Paulo
lgas supply“New Model Law for the Electric Sector” (Law # 10,848/04)
Proposal from AES Tietê to the State Government of São Paulo:S i f th bli ti t i th it f 5 D i thi i d AES Ti têSuspension of the obligation to increase the capacity for 5 years. During this period AES Tietê can analyze freely any project for investment, regardless the locationAfter the suspension period, in the case that restriction continue, a AES Tietê will be released of this obligation
30
No amount of resources and/or obligation will be paid in compensation
The State Government has not yet responded to this proposal.
ConclusionConclusionConclusionConclusion
Generation was 12% higher than assured energy
EBITDA of R$ 1.1 billion in 2006, 16.8% higher than 2005. EBITDA i f 9 % d 0% i h imargin of 79.1% compared to 77.0% in the previous year.
Dividends and interest on equity distribution corresponding to 100% of 2006 Net Income, R$ 614.1 million*
31
* R$ 448.9 million paid in advance and R$ 165.2 to be deliberated during the Shareholders’ Meeting scheduled for April 9, 2007
The statements contained in this document with regard to the business prospects, projectedoperating and financial results, and growth potential of AES Eletropaulo are merely forecasts basedon the expectations of Company Management in relation to its future performance. Such estimatesare highly dependent on market behavior and on the conditions affecting Brazil‘s macroeconomicperformance as well as the electricity sector and international market and they are therefore
The statements contained in this document with regard to the business prospects, projectedoperating and financial results, and growth potential of AES Eletropaulo are merely forecasts basedon the expectations of Company Management in relation to its future performance. Such estimatesare highly dependent on market behavior and on the conditions affecting Brazil‘s macroeconomicperformance as well as the electricity sector and international market and they are thereforeperformance as well as the electricity sector and international market, and they are thereforesubject to change.performance as well as the electricity sector and international market, and they are thereforesubject to change.
March 08, 2007March 08, 2007