2. AES Brasil Overview
AES Brasil in 2008
Distributed Energy: 41,243 GWh
Negotiated Energy: 2,555 GWh
Installed Capacity: 2,651 MW
Net Extension : 2,092 km
Net Extension: 2,017 km
Installed Capacity: 640 MW
Distributed Energy : 8,891 GWh
►
The Group consists of approximately 6 thousand employees, attending over 6 million clients
2
3. Safety, number 1 value of AES Brasil Group
5 Values of AES Brasil
►
Safety at first
►
Search of excellence
►
Acting with integrity
►
Be fulfilled at work
►
Honor commitment
Reduction of Accidents
87
►
►
Tolerance Zero Program
►
Safety with population: TV, Radio, Newspaper (mass media)
►
178
Over R$12 million invested
Culture evolution of safety at AES Brasil Group
111
50
2006
2007
2008
Own Employees + Contracted
3
4. Recent changes
Higher Operational Performance in 2008
►
FEC: lowest index in AES Eletropaulo’s history, 5.20 in 2008
►
Avoiding fraud: AES Eletropaulo regularized 450 thousand illegal connections since its privatization
►
Energy generation: AES Tiete generated an average of 14% above its assured energy in the last 6 years
Finance Restructuring by 2005 to 2008
►
Amortization schedule: Average term of 4.1 years in 2005 to 5.7 years in 2008
►
Reduction of financial cost: from 16.2% p.a. in 2005 to 13.3% p.a. in 2008
►
No relevant amortizations in 2008 and 2009
Higher Financial Result in 2008
►
Net income of R$1.7 billion
►
Balance of R$ 3.0 billion
4
5. AES Brasil Results
Investments – R$ million
Ebitda – R$ million
- 2%
+ 22%
714
2007
636
2006
779
2008
Net Debt – R$ million
3.234
2.490
2006
2007
2008
Net Income – R$ million
- 43%
7.431
+ 20% 1.695
1.415
5.070
2006
3.284
2007
4.222
2008
549
2006
2007
2008
5
7. Social responsibility
“Casa da Cultura e Cidadania” Project
►
Over 4 thousand children, teenagers,
and adults have been benefited
►
Own and encouraged investments:
approximately R$ 12 million in 2008
►
Activities of acting, dancing, circus arts, visual arts, music,
gymnastics, courses of income generation, and education of safe use
of electrical power and the right use of natural resources
“Centros Educacionais Infantis Luz e Lápis” - Project
►
280 benefited children between 1 and 6 years old
►
Own investments amounting R$ 1.5 million in 2008
►
Units: Santo Amaro and Guarapiranga
7
8. Social responsibility
Volunteer Program
►
Launched in December 2008;
►
Objective: encourage employee to transform the low income communities and develop non governmental institutions;
►
Over 1.4 thousand volunteers registered (25% of AES Brasil total employees).
8
10. AES Eletropaulo overview
Concession Area
►
Largest electricity distribution company in Latin America
►
Serving 24 municipalities in the São Paulo Metropolitan area,
including the capital
►
►
Regional West
5.8 million of consumption units
Regional North
Regional South
4,141 directed employees
Regional ABC
Regional East
10
12. Investments amounted up to R$ 457 million in 2008
Investments 2008
Investments Breakdown – R$ million
562
433
378
10%
80
457
12%
47
45%
5%
69
10%
77
18%
482
364
410
301
Customer Service and
System Expansion
Customer Financed
2006
Capex
2007
2008
2009(e)
Maintenance
IT
Loss Recovery
Others
Customer Financed
12
13. Best FEC in AES Eletropaulo history
DEC1 e FEC2
3o
3o
3o
11.81
11.34
8.90
10.92
8.61
1o
8.49
8.41
5.64
5.20
2007
2008
9.20
7.87
5.52
2006
DEC (hours)
2007
2008
DEC Aneel Standard
2006
FEC (times)
FEC Aneel Standard
ABRADEE ranking position between 28 distributors with
over 500 thousand consumers
1 – Duration of interruption
Source: Aneel and Eletropaulo
2 – Interruption frequency
13
14. Operational indexes
Collection Rate – % over gross revenue
Loss Reduction – %
- 1.3 p.p.
99.1
99.5
- 0.4 p.p.
97.8
5.0
5.1
6.5
6.5
2006
2008
11.6
6.5
2007
11.5
5.5
2006
12.0
2007
2008
Commercial Losses
► Cuts and Reconnection – Monthly Average (2007 X 2008)
–
Cuts: reduction from 112 thousand to 51 thousand
–
►
Fraud and Illegal Connections (2008)
–
435 thousand inspections and 58 thousand frauds
detected
–
75 thousand illegal connections regularized
Reconnection: reduction from 71 thousand to 36 thousand
► Bad debtor list 2008: 536 thousand
1 - Current Technical Losses used retroactively as reference
Technical Losses1
14
16. 2008 Net income exceeded R$ 1.0 billion
Dividend payout – R$ million
Net Income – R$ million
Dividends1
Yield2
Pay-out
+ 175%
100.3%
1,027
34.9%
14.4%
713
20.3%
3.2%
1,043
373
130
2006
101.5%
2007
2006
2008
715
2007
2008
► Payment of 101.5% of net income in 2008 in form of dividends and IoE
1 - including proposed complementary dividend
2 - Gross amount
16
17. Maintenance of net debt reduction
Net Debt
Amortization Schedule – R$ million
2.1x
1.3x
3.7
1.2x
1,162
117
3.0
2.5
27
258
9
2006
2007
2008
2009
2010
117
117
117
250
524
250
250
117
50
2011
2012
2013
2014
National Currency (w/out FCESP) FCESP2
Net Debt (R$ billion)
117
375
125
2015
2016-2028
Foreign Currency3
Net Debt / AdjustedEbitda1
►
Extension of maturity of the Mathmetical Reserve Contract Adjustment with Fundação Cesp from 2022 to 2028
►
AEs Eletropaulo average debt cost is CDI + 0.36% p.a.
1 – Last 12 months of adjusted Ebitda
2 - Fundação Cesp = Pension Fund
3 – Exchange Rate in 12/31/2008 – US$ 1.00 = R$ 2.3370
17
18. One more year of awards
►
Maintenance on ISE (Sustainability Index) for 2009 (BM&FBovespa – Nov.08)
►
National Quality Award, company recognized as a reference on global management (National
Quality Foundation – Oct.08)
–
Finalist company category
►
Value Creation Prize for Shareholders in the Sector, in the category Eletric Energy (Abrasca Associação Brasileira das Companhias Abertas – Aug.08)
►
Most acknowledged company on sustainability among companies from the
(Revista Imprensa – May.08)
public sector
18
21. AES Tietê overview
Concession Area
►
30 year concession, expires in 2029
►
10 hydroelectric plants in the State of Estado de São Paulo at Tietê, Pardo
and Mogi Guaçu rivers
►
►
UHE Bariri
UHE Caconde
UHE Ibitinga
UHE Euclides da Cunha
UHE Promissão
UHE Limoeiro
UHE Nova Avanhandava
Since 2005, 100% of net income distributed as dividends and IoE
UHE Água Vermelha
UHE Barra Bonita
Installed capacity 2,651 MW
PCH Mogi-Guaçu
21
22. Operational disposal
Energy Generation – MW average1
Billed Energy– R$ million
121%
118%
112%
13,148
573
330
1,740
1,680
11,108
1,510
13,421
1,130
1,424
1,543
11,108
11,138
2006
2007
2008
12,774
536
2006
2007
2008
Generation – MW Average
AES Eletropaulo
Generation / Assured Energy
MRE
Spot Market
1- Generated energy divided by the amount of period hours
22
23. Investments up to R$ 59 million in2008
Investments – R$ million
2008 Investments
101
New SHPP’s1
Investments
33
36%
59
47
22
28
12
12
22
28
12
51
8
20
3%
67
35
43
48%
12%
39
Equip. and Maint.
2004
2005
2006
1- SHPP Jaguari Mirim and Piabanha
2007 2008
New SHPP’s
IT
2003
Environment
2009(e)
23
27. Another year of recognition
► Maintenance on 2009 Corporate Sustainability Index
(BMF&Bovespa – Nov.08)
► One of the 20 model corporation on sustainability on Brazil
(Guia de Sustentabilidade da Revista EXAME –
Oct.08)
► One of the 150 best corporations to work
(Revista Você S.A. / EXAME – Sep. 08)
► Best performance on electricity industry sector for Valor 1000
► Most profitable corporation on the electricity industry
(Jornal Valor Econômico – Jul.08)
(Guia Maiores e Melhores (Revista EXAME – Jul.08)
► Most profitable company in the last 5 years among the 500 largest publicly companies in Brazil
(Revista Conjuntura Econômica, da FGV – Jul.08)
29. 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.
