2. Highlights
2Q08
– Generation 28% above Assured Energy
– EBITDA of R$ 288.9 million in 2Q08, an increase of 24.2% when compared to
same period of 2007 (R$ 232.6 million)
– Net income of R$ 134.1 million in 2Q08, 5.6% lower than that in 2Q07 (R$ 142.1
million)
– On May 29th, 2008, the company paid R$ 172.8 million as Dividends regarding
1Q08 results
Subsequent Events
– Proposed dividends of R$ 134.1 million, corresponding to 100% of net income on
2Q08:
- R$ 0.34 per Common Share
- R$ 0.37 per Preferred Share
2
3. Energy Balance
Generation – MW Average Billed Energy – GWh
7,239 7,292
738 461
121% 128%
115% 914 1,234
109% 107% 112%
1,635 5,587 5,597
1,543
1,363 1,467 1,424
1,392
2003 2004 2005 2006 2007 1H08
1H07 1H08
Generation - MW Average Generation / Assured Energy
Eletropaulo MRE CCEE/Losses
Increase of 29.4% on Generated Energy Bilateral Contract with Eletropaulo:
(2Q08 x 2Q07) – Price until 07/03/2008 – R$ 131.98/MWh
– Prices from July, 2008 – R$ 149.72/MWh
Generation 28% above Assured Energy
(1,275 MW average) MRE Tariff – R$ 7.77/MWh
Average price of 2Q08 billed energy at CCEE
– R$ 59.72/MWh (R$ 68.82/MWh in 2Q07)
3
4. Investments
Capex – 2Q08: R$ 12.9 million 1H08
Capex – 1H08: R$ 18.5 million
Equipment
– Equipment restoration and upgrade of operating plants - 45.4%
R$ 6.0 million Environment
32.3%
– Upgrade of the SHPP – R$ 1.7 million IT
– Environmental Projects – R$ 3.3 million SHPP
– Investments on IT – R$ 0.8 million
17.7%
– SHPPs “São José” and “São Joaquim”, at São Paulo (total 4.5%
capacity 7MW) – R$ 5.2 million
– 3 SHPPs at Rio de Janeiro: Investments – R$ million
• Installed Capacity of 52MW 85.9
• The installation license was granted in October 2007
17.7
• Until 06/30/2008 R$ 21.0 million were invested, of
SHPPs - RJ
which R$ 1.0 million in 1H08 68.2
50.7
• Waiting for the Vegetation Suppression License 46.5
authorization in order to start the construction
27.5
18.5
Capex 2008 – Estimate revised to R$ 85.9
million
2005 2006 2007 2008 (E) 1H08
4
5. Expansion Requirement
Requirement: increase installed capacity, by at least, 15% (400 MW), until
December 2007:
– Increase the installed capacity in São Paulo State; or
– Purchase energy from new plants, located in São Paulo, through long term agreements (at
least 5 years)
Restrictions to accomplish the requirement:
– São Paulo State – insufficient hydro resources and environmental restrictions to install Thermo
plants;
– Insufficiency of gas supply;
– “New Model of Electric Sector” (Law # 10,848/04)
On February 2008, AES Tietê received a report prepared by a consulting
company, regarding the evaluation of possibilities of expanding its
generation capacity in São Paulo State.
The Company has been developing discussions with different members of
the São Paulo State Government, regarding opportunities related to:
– Hydroelectric potential
– Opportunities for joint generation
– Alternative energies
5
6. Gross Revenue – R$ Million
Gross Revenue Without Non-recurring Effects
+33.1% 809 786 809
608 +2.9%
34 74
74 34
34
(132) 775 775
775
712
712
+86.8%
740 +1.3%
+4.6%
395 390 395
211 +8.8%
16 16
16
37
(170) -0.6%
+7.4%
381 378 352
352 378
378
1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08
Net Revenue Deductions Reversion of Deductions
Stable net revenue comparing to 2Q07
– Change in PIS/Cofins Tax from Cumulative to Non-cumulative generated extraordinary impacts in
2Q07:
• Gross Revenue - decrease of R$ 178.2 million
• Deductions – reversion of R$ 206.7 million
• Net Revenue – increase of R$ 28.5 million
6
7. Costs and Operational Expenses
R$ Million
Costs and Operational Expenses Without Non-recurring Effects
253
+ 4.9 %
-19.0%
205 205
195
164
175
112 -35.6% 83
102 112 + 9.3 %
106 106
97
132
58 50
40 58
60
60
45 60 60
16 31 31 31
33 33 16 16 33 33 16 16
16
1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08
Power Purchase and Sector Charges Other Operational Expenses Depreciation
TUSDg Costs:
– Extraordinary impact in 2Q07’s expenses, R$ 92.5 million, retroactively of 07/01/2004
– Tariff Cycle 2007/2008, R$ 44.3 million (R$ 11 million / quarter)
Reversal of R$ 15.3 million provision in 2Q07 due to the change of PIS/COFINS tax,
from cumulative, to non-cumulative
7
9. Financial Results – R$ Million
Financial Results - R$ Million Without Non-recurring Effects
1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08
10
(19) (21)
- 431.6 % - 215.8 %
(50)
(65) (65)
- 103.0 %
(101) (101)
Increase of the average IGP-M (4.34% in 2Q08 x 0.35% in 2Q07), which
accrues the Company’s debt – amount of R$ 1.3 billion
Positive effect in 2Q07 due to the change of PIS/COFINS taxation system,
totaling R$ 30.8 million
9
10. Results
Net Income - R$ Million Without Non-recurring Effects
42.3% 41.9%
40.9% 39.6% 39.6%
37.3% 35.4%
+1.4%
35.4%
+1.8%
- 5.6 %
303 307 301 307
- 9.1%
142 154
134 134
134
1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08
Net Income Net Margin
Proposed Dividends of 100% of 2Q08’s Ex-Dividend date 08/14/2008
Net Income:
– Dividends: R$ 134.1 million; Payment date 08/28/2008
– Total payment by share:
- R$ 0.34 / common share
- R$ 0.37 / preferred share
10
11. Consolidated Debt
in R$ million
Amount Creditor Maturity Cost Collateral
1,287.1 Eletrobrás May, 2013 IGP-M + 10% p.a. Receivables
0.0 FunCesp III Sep, 2027 IGP-DI + 6% p.a. Receivables
Net Debt - R$ Million
2.0x
1.4x
1,253.5 0.7x 0.6x 0.6x 0.5x
1,096.3
676.5 681.9 660.9 606.8
2003 2004 2005 2006 2007 2Q08
Net Debt (R$ million) Net Debt / EBITDA
Cash Availability 06/30/2008 = R$ 680.3 million
– Marketable securities with maturities lower than 90 days
– Average rates around 100% of CDI
11
12. Managerial Cash Flow
R$ Million 2Q07 3Q07 4Q07 1Q08 2Q08
INITIAL CASH 683.5 571.2 589.0 633.7 814.6
Operating Cash Flow 307.9 248.9 271.2 261.5 279.3
Investments (12.0) (9.3) (15.0) (4.1) (11.6)
Net Financial Expenses (18.0) (19.3) (18.4) (15.3) (14.1)
Net Amortization (48.3) (50.8) (52.0) (46.2) (45.6)
Income Tax (16.6) (9.8) - (15.1) (16.0)
Dividends and IoE (325.4) (141.9) (141.0) - (334.1)
Free Cash Flow (112.3) 17.8 44.7 180.9 (142.1)
FINAL CASH OF PARENT COMPANY 571.2 589.0 633.7 814.6 672.5
Final Cash of Subsidiaries and Associated Companies 28.3 4.2 4.6 6.5 7.8
Final Cash 599.4 593.2 638.3 821.0 680.3
Investments – construction of the SHPP’s at São Paulo (R$ 4.2 million) and upgrade of
the SHPP’s of AES PCH Minas subsidiary (R$ 1.7 million)
Payment of dividends regarding 4Q07 and 1Q08
12
13. Conclusion
Generation was 28% above Assured Energy in 2Q08
EBITDA of R$ 288.9 million in 2Q08, representing an increase of
24.2% when compared to 2Q07 (R$ 232.6 million)
Net income of R$ 134.1 million in 2Q08, represents a decrease of
5.6% when compared to 2Q07 (R$ 142.1 million)
Proposed dividends corresponding to 100% of 2Q08 net income
13
14. 2Q08 Results
The 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 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.
