2. AES Brasil Group
•P
Presence i B il since 1997
in Brazil i
• Operational Figures:
• Consumption units: 7.7 million
53.6
• Distributed Energy: 53 6 TWh
• Installed Capacity: 2,659 MW
• Generated Energy : 13.9 TWh
• 7.4 thousand AES Brasil People
• Investments 1998-2011: R$ 8.1 billion
• Solid corporate governance and sustainable
practices
• Safety as value #1
2
3. AES Brasil widely recognized in 2009-2012
Management Excellence
Quality and Safety
Environmental
Concern
(AES Tietê)
(AES El
Eletropaulo)
l )
(AES Tietê)
(AES Eletropaulo)
(AES Sul)
(AES Brasil)
(AES Tietê)
(AES El t
Eletropaulo)
l )
(AES Eletropaulo)
(AES Brasil)
(AES Tietê)
(AES Tietê)
(AES Eletropaulo)
(2011- AES Tietê; 2012 – AES Eletropaulo)
(AES Tietê)
(AES Eletropaulo)
(AES Eletropaulo)
3
4. Shareholding structure
BNDES
AES Corp
C 50.00% + 1 share
P 0.00%
T 46.15%
C 50.00% - 1 share
P 100%
T 53.85%
Cia. Brasiliana
de Energia
T 99.70%
AES Sul
C 99.99%
T 99.99%
AES
Infoenergy
C 99.00%
T 99.00%
C 71.35%
P 32.34%
T 52.55%
AES
Uruguaiana
AES
Tietê
C 76.45%
P 7.38%
T 34.87%
AES
Eletropaulo
C = Common Shares
P = Preferred Shares
T = Total
4
5. AES Tietê and AES Eletropaulo are listed
in
i BM&F B
Bovespa
¹
¹ Free Float
Others²
16.1%
19.2%
56.2%
8.5%
24.2%
24 2%
28.3%
28 3%
39.5%
39 5%
8.0%
8 0%
Market Cap³
R$ 3.2 bi
US$ 1 6 bi
1.6
R$ 9.8 bi
US$ 4.8 bi
1 - Parent companies, AES Corp and BNDES, have similar voting capital on each of the Companies: approx 38.2% on AES Eletropaulo and 35.7% on AES Tietê
2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively
3 - Base: 08/08/2012. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê
5
7. AES Tietê overview
Generation facilities
18 hydroelectric plants in São Paulo and Minas Gerais
30-year concession valid until 2029; renewable for other
20 years
Installed capacity of 2,663 MW, with physical guarantee1
of 1,282 MW average
Almost all the amount of energy that AES Tietê can sell
is contracted with AES Eletropaulo until the end of 2015
AES Tietê can invest in generation its main activity and
generation,
activity,
operate in energy trading
370 employees as of June, 2012
1 - Amount of energy allowed to be long term contracted
7
8. Generated energy shows high
operational availability
p
y
Generated energy (MW avarage1)
1H12 Generated energy by power plant (MW average1)
139%
130%
125%
Água Vermelha
138%
7%
124%
Bariri
Bariri
9%
Barra Bonita
10%
59%
1.742
1.665
1.599
1.582
5%
1.606
5%
5%
2009
2010
Generation - Mwavg
2011
1H11
Nova Avanhandava
Promissão
1H12
Other Power Plants*
Generation/Physical guarantee
1 – Generated energy divided by the amount of hours
Ibitinga
Ibi i
* Caconde, Limoeiro, Mogi and SHPPs
8
9. A significant amount of billed energy and net
revenues comes from the bilateral contract with
AES Eletropaulo
Billed energy (GWh)
14,706
,
Net revenues (%)
117
88%
15,122
14,729
,
554
301
1,150
1,340
1,519
2,331
1,980
1,942
9,059
9 059
297
7,510
201
851
11,108
11 108
11,108
11 108
11,108
11 108
909
2% 7%
3%
2,182
1,425
1 425
5,034
5,672
AES Eletropaulo
Other bilateral contracts
Other bilateral contracts
2009
2010
AES Eletropaulo
2011
1
MRE
Spot Market
1 – Energy Reallocation Mechanism
1H11
1H12
Other bilateral contracts
Spot Market
MRE1
9
10. Nova Avanhandava and Ibitinga power
p
plants modernization investments
Investments (R$ million)
1H12 Investments
87%
175
19
82
174
72
156
12
10
6% 7%
41
3
70
2010
62
2011
2012(e)
38
1H11
1H12
Equipment and Modernization
New SHPPs*
Investments
1
New SHPPs
IT projects
1-Small Hydro Power Plants
10
11. Growth opportunities
“Thermal São Paulo” Project
-
Natural
N t l gas combined cycle th
bi d
l thermal plant, with 550 MW of i t ll d capacity
l l t ith
f installed
it
-
Project will not participate in 2012 auctions (A-3 and A-5) due to gas unavailability
-
Environmental License was restored after the decision of São Paulo State Court of Justice
-
Next steps: Obtainment of the installation license
“Thermal Araraquara” Project
“Th
lA
”P j t
-
Natural gas combined cycle thermal plant, with 579 MW of installed capacity
-
Purchase option acquired in March, 2012
-
Project ill t
P j t will not participate i 2012 auctions (A 3 and A 5) d t gas unavailability
ti i t in
ti
(A-3 d A-5) due to
il bilit
-
Next steps: Obtainment of the installation license
11
13. Steady earnings distribution on a
quarterly
q arterl basis
Net income and dividend pay-out1 (R$ million)
110%
117%
109%
11%
11%
11%
• Dividends distribution
100% of net income
–
706
–
–
Average payout since 2006:
Average dividends since 2006:
706
354
1 – Gross value
p y
pay-out
R$ 745 million per year
845
Pay -out
minimum
106%
479
2009 (36)
of
according to bylaws
737
31
742
25%
practice:
2010
Yield Pref
2011
1H11
Recurring
476
1H12 (3)
Non-recurring
13
14. Capital Markets
AES Tietê X Ibovespa X IEE
160
12 Mounths
B
A
140
+ 15%
+ 10%
+ 5%
+ 3%
120
100
- 9%
80
set/11
dez/11
Ibovespa
mar/12
IEE²
GETI4
jun/12
TSR³
set/12
GETI3
A Ex dividends 08/06/2012
B Provisional Measure 579 published to define the conditions for renewal of concession contracts and tax cuts in the energy sector.
•
Market Cap4: R$ 8.1 billion
•
BM&FBovespa: GETI3 (common) e GETI4 (preferred)
•
ADRs traded in the U.S. OTC Market: AESAY (common) and AESYY (preferred)
1 – Index: 09/14/2011 = 100
2 – Eletric Energy Index
3 – Total Shareholder’s Return
4 – Data from: 09/14/2012
14
15. Why invest in AES Tietê?
St
Strong cash generation ability
h
ti
bilit
First-class corporate governance practices
Sustainable practices in business
Shareholder remuneration practice in recent years: quarterly payments of
the total net income
15
17. AES Eletropaulo overview
Concession area
Largest electricity distribution company in Latin America
Serving 24 municipalities in the São Paulo Metropolitan area
Concession contract valid until 2028; renewable for another 30
years
Concession area with the highest GDP in Brazil
45 thousand kilometers of lines and 6.3 million consumption
units in a concession area of 4,526 km2
45 TWh distributed in 2011
AES Eletropaulo, as a distribution company, can only invest in
assets within its concession area
5,850 employees as of June, 2012
17
18. Consumption evolution
Total market1 (GWh)
Consumption by class – 1H12 (%)
9
15
6,832
7,911
18
45,102
29
41
41,269
43,345
24
8,284
22,365
2009
35,434
2010
36,817
2011
Captive Market
4,149
3,920
18,216
34,436
22,674
,
18,754
26
6
1H11
1H12
Brazil
38
Free Clients
Residential
1 – Net of own consumption
AES Eletropaulo
Industrial
Commercial
Others
18
19. Investments focused on grid automation,
maintenance and system expansion
y
p
Investments 1H12 (R$ million)
Investments breakdown (R$ million)
98
800
700
739
682
841
46
22
12
15
15
88
28
600
500
325
400
300
654
717
38
354
794
9
10
200
315
88
15
339
Maintenance
100
Client Service
0
2010
2011
2012(e)
1H11
1H12
System Expansion
Losses Recovery
Capex
Paid by Customers
Paid by Customers
IT
Paid by the Clients
Others
19
20. SAIDI reduction and SAIFI remains below
the regulatory limit
g
y
SAIDI - System average interruption duration index
SAIFI - System average interruption frequency index
7.87
7.39
6.93
- 18%
10.09
9.32
10.60
11.86
8.68
8 68
10.36
2009
2010
2011
8th
7th
5.78
6.17
6th
SAIDI (h
(hours)
)
jan/jun11
5.43
5.45
2.90
4.54
jan/jun12
2009
2010
2011
7th
3rd
Jan-Jun/11
2.37
Jan-Jun/12
4th
SAIFI (times)
(ti
)
SAIDI A
Aneel R f
l Reference
SAIFI Aneel Reference
A
l R f
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
►
2012 SAIDI ANEEL Reference: 8.67 hours
►
Source: ANEEL, AES Eletropaulo and ABRADEE 1 – 1 – Accumulated 7 months (Jan-Jun ) 2011 and 2012
2012 SAIFI ANEE R f
ANEEL Reference: 6 8 times
6.87 i
20
21. Financial highlights
Net revenues (R$ million)
Ebitda (R$ million)
2,413
9,697
426
9,836
,
8,786
2,848
933
1,775
87
197
4,814
339
442
1,074
4,924
134
1,491
1,648
562
1,473
9 0
940
136
425
2009
2010
2011
1H11
1H12
2009
2010
2011
1H11
1H12
Recurring
Regulatory assets and liabilities
1
Non-recurring
1 – Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 707 million impact on Ebitda
21
22. Earnings distribution
o se a ua bas s
on semi-annual basis
Net income and dividend payout1 (R$ million)
101.5%
114.4%
54.4%
20.4%
28.6%
17.1%
•
1.572
1.348
350
652
–
287
762
25% of minimum pay-out according
to bylaws
236
160
6
622
practice:
minimum
required
1.157
374
Dividends
distribution
distribution above the
per year
537
162
634
376
Average payout since 2006: 83%
–
167
Average
dividends
since
2006:
R$ R$ 904 million per year
247
(80)
2009
2010
2011
1H11
1H12
Pay-out
Yield PN
Net Income - ex one-off and with regulatory assets and liabilities
Regulatory assets and liabilities
1 – Gross amount
One off
2– Non recurring 2011 :Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income
22
23. Regulatory methodology
and tariff reset
3rd cycle of tariff reset
Tariff reset and readjustment
• Tariff Reset is applied each 4 years for
AES Eletropaulo
Variable costs
Parcel A
Tariff Revision:
Average effect perceived by
consumers: -9.33%
Regulatory
Opex
O
(PMSO)
Remuneration
Asset B
A
t Base
X WACC
Investment
Remuneration
Parcel B
Tariff reset +5 51%
reset: +5.51%
X Depreciation
Depreciation
• Tariff Readjustment: annually
− Parcel A : costs are largely passed through to the tariff
Review + tariff adjustment: -2.26%
From July 4, 2012
− Parcel B: cost are adjusted by IGPM +/- X(1) Factor
1 – X Factor: index that captures productivity gains
23
24. Efficiency program and cost
management
Efficiency Program
Implementation of “Creating Value” project in 2010, that provided gains with cost control and increase
in ffi i
i efficiency and revenue
d
Program initiatives:
• review in the operational process and support areas
• increase in productivity of the teams in field
• optimization in orders to emergency teams
• improvement in the management of material and service suppliers contracts
• efficient use of operational fleet
• rationalization and modernization of customer services stores and on site billing
Sale of Property
Centralization of activities in the new corporate headquarters and demobilization of Cambuci
operational unit will allow the sale of real estate in value estimated up to R$ 239 million
24
25. Capital Markets
AES El t
Eletropaulo X Ib
l
Ibovespa X IEE
12 mounths¹
150
B
A
130
+10%
+ 5%
110
90
70
- 34%
- 38%
50
30
set-11
Ibovespa
nov-11
jan-12
IEE²
mar-12
mai-12
AES Eletropaulo PN
jul-12
set-12
AES Eletropaulo TSR³
A Disclosure by Aneel of the preliminary calculation of the tariff reset- 10/04/2012
B Aneel disclosed the final terms relating to tariff resetand adjustment - 02 and 03/07/2012
•
Market cap4: R$ 3.1 billion
•
BM&FBOVESPA: ELPL3 (common) and ELPL4 (preferred)
•
ADRs traded on the OTC Market: EPUMY (preferred)
1 – information until 14/09/2012, Index: 14/09/2011 = 100
3 – Total Shareholder Return
shares
2 – Eletric Energy Index
4– Data from:: 09/14/12. Calculation includes only preferred
25
26. Why invest in AES Eletropaulo?
Strong ability to generate cash
First-class corporate governance practices
Embracing sustainable practices in business
26
27. Contacts:
ri.aeseletropaulo@aes.com
ri.aestiete@aes.com
+ 55 11 2195 7048
The statements contained in this document with regard to the business prospects, projected operating and financial
results, and growth potential are merely f
l
d
h
i l
l forecasts b
based on the expectations of the C
d
h
i
f h Company’s M
’ Management i
in
relation to its future performance. Such estimates are highly dependent on 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.
.