2. 2012 Highlights
Power generation 27% higher than the physical guarantee and 3% higher than 2011
Operational
p
p
p
,
g
p y
- 4.4% exposure to the spot market from September to December, 2012 due to the lowering of physical
guarantee, resulting in major cost with energy purchase
Investments of R$ 139 million mainly focused on power plant’s modernization, especially Nova Avanhandava and
Ibitinga
288 MWavg of energy sold through bilateral contracts in the free market totaling a portfolio of 320 MWavg
market,
Financial
Net revenue of R$ 2,112 million, an increase of 12% compared to 2011
Increase of 15% in 2012 operating costs1 and expenses mainly with materials and outsourcing
expenses,
Ebitda reached R$ 1,542 million, with margin of 73%
Net income of R$ 901 million, an increase of 7% in comparison with 2011
Regulatory
The Energy Costs Reduction Program regulated on September 11th, 2012, through the PM 579, that was
converted into the Law No. 12,783, on January 14th, 2013
1 – Excludes costs with energy purchase and the non recurring effects related to the sale of PCH Minas and the receipt of claim in Nova Avanhandava
2
3. 2012 Highlights
Dividends
P
Proposal of di t ib ti of complementary di id d i th amount of R$ 182 million, R$ 0 46 per common share
l f distribution f
l
t
dividend in the
t f
illi
0.46
h
and R$ 0.50 per preferred share, to be submitted to the 2013 General Shareholders Meeting
Ratify the interest on own capital payment in the amount of R$ 26 million, R$ 0.06 per common share and R$
0.07 per preferred share, to be submitted to the 2013 General Shareholders Meeting
Payout of 108% i 2012
t f
in
-P
Social
Safety: no accidents involving own employees
- 50% drop in the number of accidents involving the outsourced employees, being five accidents with no
absence. Since February 2009, there were no accidents in the Company’s reservoirs involving the population.
Communities Development and Valuing: social private investment of R$ 12.8 million in education, culture, sports
and inclusive professional training, benefiting around 148.500 people
Environmental
Awards
Efficient usage of natural resources in 2012: water consumption in the AES Tietê’s units came to 57,700 m³,
down 56.5% from 2011.
National Quality Award – PNQ 2012 of Fundação Nacional da Qualidade – FNQ
Award “Best Company for Shareholders in 2012” of Capital Aberto magazine
Participation in the 2012/2013 Corporate Sustainability Index (ISE) portfolio, from the BM&FBovespa, for the 6th
consecutive year
International Certification PAS-55 of assets reliability and maintenance for companies of the Society for
Maintenance & Reliability Professional
Guia Exame de Sustentabilidade: AES Brasil group was recognized, by Exame magazine, as one out of twenty
model companies in sustainability
3
4. Generation remains above the physical guarantee, even with
the reduction of the reservoirs level
Reservoirs level of main AES Tietê’s power plants1
Energy generated (MW average2)
130%
127%
6
62%
124%
39%
49%
3
33%
48%
48%
67%
125%
1,599
,
1,582
1,629
2009
2010
2011
2012
16%
1,665
A. Vermelha
Promissão
2011
1 – As of 12/28/2012.
B. Bonita
2012
Caconde
Generation - Mwavg
Generation/Physical guarantee
2 – Generated energy divided by the amount of hours in the period
4
5. Exposure to higher spot prices marked the 4Q12
Physical Guarantee Allocation (MW avg)
PLD submarket SE/CO – Monthly Average (R$/MWh)
45
375
295
318
23
376
161
6
89
77
76
181
181
-42
-32
-108
jan
feb
mar
apr
may
Secondary energy
jun
jul
aug
sep
oct
Lowering physical guarantee
nov
dec
29 23
13
jan
51
48
14
feb
28
26
mar
2010
118
22
12
apr
32
17
may
2011
183
183
119
125
-21
260
2
193
72
280
32
jun
72
23
jul
2012
117
132
91
68
138
21
20
aug
sep
37
oct
46
nov
44
dec
Spot cost (R$ million)
1 – Total energy purchase cost in the spot market
5
6. 2012 investment mainly focused on power plant’s
modernization, especially Nova Avanhandava
p
y
and Ibitinga
2012 Investments
Investments (R$ million)
175
89%
139
19
3
200
156
56
139
5
51
2011
2012
66
2013 (e)
4Q11
66
4Q12
8% 3%
Equipment and Maintenance
New SHPPs*
Investments
I
t
t
* Small Hydro Power Plants
New SHPP *
N
SHPPs*
IT Projects
6
7. Higher volume of billed energy in ERM1 and other
bilateral contracts, with reduction of billed
energy in the spot market in 2012
Billed Energy (GWh)
11%
15,128
554
1,524
,
16,728
615
1,141
3,834
1,942
-8%
4,006
11,108
11,138
207
332
3,696
1 - ERM – Energy Reallocation Mechanism
864
3,063
2011
2012
AES Eletropaulo
Energy Reallocation Mechanism
403
194
58
2,579
4Q11
4Q12
Spot Market
Other Bilateral Contracts
7
8. Formation of clients portfolio
Clients portfolio evolution in 2012
• Goals 2011/2012: commercial
initiatives to expand clients
portfolio in the free market
259
320
• The current portfolio comprises
320 Mwavg, of which 288 MWavg
were sold in 2012
84
90
1Q12
2Q12
• 143 Mwavg were sold to 2016
32
Before
dec/2011
3Q12
4Q12
onward
Mwavg
8
9. Readjustment of 5% in the bilateral contract with
AES Eletropaulo and higher spot prices
contributed to the net revenue growth in 2012
Net revenue (R$ million)
12%
2,112
1,886
1 886
143
59
78
54
1,773
-9%
542
1,891
494
19
15
19
25
508
2011
2012
AES Eletropaulo
449
4Q11
4Q12
Spot/MRE
Other bilateral
9
10. Expenses with energy purchased for
resale pressured costs in 2012
Operational costs and expenses¹ (R$ million)
5
16
23
9
5
556
10
113
565
570
Transmission
and
connection
Financ. Comp.
for use of
water res.
2012
420
2011
Energy
purchased for
resale
PCH Minas
1 – Do not include depreciation and amortization;
Claim in Nova
Avanhandava
Operating
allowances
and other
expenses
Personnel,
material and
outsourcing
10
11. Ebitda growths 5%, with margin of 73% due to the
readjustment on the bilateral contract with AES Eletropaulo
and higher costs of energy purchased for resale in 2012
Ebitda (R$ million)
78%
• 4Q12 Ebitd i fl
Ebitda influenced b th
d by the
77%
73%
59%
cost of energy purchased for
resale.
• E l di
Excluding the effect of the
th ff t f th
1.466
1.542
exposition to the spot market, the
4Q12 Ebitda would be of R$ 336
419
2011
2012
Ebitda
292
4Q11
4Q12
million, with margin of 68 1%
illi
ith
i f 68.1%
Ebtida Margin (%)
11
12. Better financial result influenced basically by
the drop of the CDI1 and lower expenses
p
p
with monetary variation in 2012
Financial Result (R$ million)
2012
2011
4Q12
4Q11
(4.0)
(4 0)
(4.3)
(4 3)
• 1st emission of debenture maturing in
g
2015 attached to the CDI + 1.20%
-8%
(47)
(42)
• Cash and cash equivalents: short-
term operations, with average return
p
g
of 102% of CDI in 2012
-9%
1 – Brazilian interbank interest rate
12
13. Net Income 7% higher in 2012, due to the
readjustment of the bilateral contract with
AES Eletropaulo and better financial results
Net Profit (R$ million)
110%
108%
108%
104%
11%
12%
3%
3%
Proposal of dividends distribution in the amount of
R$ 182 million related to the 4Q12:
illi
l t d t th 4Q12
- R$ 0.46 per common share
- R$ 0.50 per preferred share
- estimated payment date: May 7, 2013
845
901
263
2011
4Q11
2012
181
4Q12
Net Profit
Yield Preferred Shares
Pay-out
13
14. 2012 cash generation reflects higher revenue
with the bilateral contract with AES Eletropaulo
and CCEE (spot + ERM)
Operating Cash Flow (R$ million)
Final Cash Balance (R$ million)
+22%
-10%
-11%
-7%
-11%
1.350
442
1.643
404
2011
2012
4Q12
2011
2012
359
4Q11
397
14
15. Net debt/Ebitda stable in 0.3 times
Debt Amortization Schedule (R$ million)
Net Debt (R$ billion)
0,63
0,61
0,3x
0,3x
300
0,48
2013 (e)
2012
300
2014
2015
0,52
2011
300
Net Debt
Debt amortization flow (R$ million)
Net Debt/Ebitda
Gross Debt/Ebitda
Debt cost
2011
2012
Average Cost (% CDI)1 115%
g
(
)
Covenants
128%
Gross debt/Ebitda of 2.5x
Average Term (years)
1.3
Ebitda/Financial expenses of 1.75x
Effective Rate
2.3
12.1%
1 – Percentage of CDI (Interbank Deposit Certificate)
9.8%
15
16. 4Q12 R
Results
lt
The statements contained in this document with regard to the
business prospects projected operating and financial results
prospects,
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.