2. 1Q13 Highlights
Operational
Decrease of 13% in SAIDI and 10% in SAIFI compared to 1Q12
10 1% t t l l
10.1% total losses i th l t 12 months, d
in the last
th down 0 3% compared t th same period l t year
0.3%
d to the
i d last
2.2% increase in energy consumption, totaling 11,401 GWh
Financial
Gross revenues of R$ 3,283 million, a 14% decrease compared to 1Q12
Manageable PMSO down 3.4% compared to 1Q12, versus IGP-M 8.0% in the same period
Adjusted EBITDA of R$ 209 million, 35% higher than in 1Q12
Reported EBITDA totaled R$ 128 million, 60% lower than 1Q12
Cash generation of R$ 385 million in 1Q13, 27% higher than in 1Q12
Completion of the renegotiation process of debt covenants to amend its limits for the 1Q13 and 2Q13 to 5.5x
and 3.75x, respectively
SocioS i
environmental
87 times reduction in the frequency rate of accidents involving contractors
Promoting safe access to the use of electricity, guiding more than 14,000 families to avoid accidents with the
power grid, seeking development and enhancement of communities
Efficient use of energy resources: through reduction of 4 668 MWh in energy demand from our customers
4,668
2
3. Regulatory events
Law No. 12,783
20% average tariff reduction of AES Eletropaulo from January 24, 2013, due to the Energy Cost Reduction
Program
Involuntary exposure to spot market of 4%, generated by the non-allocation of energy quotas due to non-renewal
of the concessions of some generators
y
p
p
,
Decree No 7 945 CDE transfer of funds to distributors from January 2013 to neutralize exposure at the spot market,
No. 7,945
hydrological risk and additional cost of thermal power plants
R$ 317 million was recorded in income as a reversal of expenses with Parcel A, with a receipt of R$ 134
million in April and R$ 148 million in May
In 2012 the financial impact due to the thermal dispatch for thermal security system totaled R $ 118 million,
which will be credited to the Company in the tariff adjustment in July
Administrative
appeals
Results should be released by the end of June and applied in the tariff adjustment in July
Shielded RAB: claim for reversal of the exclusion of R$ 728 million related to the amount of cables and R$ 533
.
million related to accounts reclassification and adjustments in the number of equipments
Incremental Regulatory Asset Base: claim for inclusion of R$ 442 million related to smaller components and
workforce capitalization
.
3
4. Consumption growth due to better performance
at residential and total commercial class¹
Consumption evolution² (GWh)
+3.8%
-2.7%
-2.0%
+0.3%
+0.7%
+9.7%
+2.2%
11,156 11,401
9,250 9,309
4,106 4,262
3,043 2,981
1,395 1,357
1 395 1 357
Residential
Industrial
1,906
1 906 2,092
707
Commercial
709
Public Sector
and Others
Captive Market
Free Clientes
Total Market
Consumption evolution with the free market allocated in the respective consumer classes (GWh)2
+3.8%
-3.1%
+5.2%
-0.3%
+2.2%
11,156 11,401
4,106
4,262
2,654 2,571
3,353
3,528
1,043 1,040
1 043 1 040
Residential
1 - Captive and free commercial clients
Industrial
Commercial
1Q12
1Q13
Public Sector
and Others
Total Market
2 – Own consumption not considered
4
5. Best SAIDI since 2006 and better performance
than the regulatory limits
SAIDI¹ (last 12 months)
SAIDI1 (YTD)
-13%
8.67
8 67
9.32
10.60
-9%
9%
8.49
8 49
8.67
8.68
10.36
8.35
9.57
8.29
3.36
2010
2011
2012
1Q12
1Q13
SAIDI (hours)
1 - System Average Interruption Duration Index
Sources: ANEEL and AES Eletropaulo
3.06
Jan-Apr 12
Jan-Apr 13
SAIDI Aneel Reference
5
6. SAIFI better than regulatory limits
SAIFI¹ (last 12 months)
SAIFI1 (YTD)
7.39
6.93
6.87
6.87
6.64
-10%
10%
-5%
5.46
2010
5.45
2011
4.65
5.09
2012
1Q12
4.60
1.76
1Q13
SAIFI (times)
1 - System Average Interruption Frequency Index
Sources: ANEEL and AES Eletropaulo
1.68
Jan-Apr 12
Jan-Apr 13
SAIFI Aneel Reference
6
7. Losses level within the regulatory reference
for the 3rd Cycle of Tariff Reset
Losses (last 12 months)
10.9
6.5
Regulatory Reference² - Total Losses (last 12 months)
10.5
10.4
10.4
10.1
6.5
6.1
6.4
6.1
10.6
4.4
4.0
4.1
4.0
2011
2012
1Q12
1Q13
9.8
98
9.4
2011/2012
2012/2013
2013/2014
2014/2015
4.0
2010
10.3
10 3
Non Technical Losses
Technical Losses¹
1 – In January 2012, the Company improved the assessment of the technical losses, making it more precise.
2 – Values estimated by the Company to make them comparable with the reference for non-technical losses of the low voltage market determined by the Aneel .
7
8. Investments focused on system expansion,
maintenance and quality of client services
Investments (R$ million)
Investments (R$ million)
1Q13
R$ 145 million
831
5
35
739
22
36
29
647
26
3
11
717
796
9
-21%
53
621
184
7
177
2011
2012
2013(e)
1Q12
145
11
134
1Q13
Client Service
System Expansion
Losses Recovery
Own Resources
Paid by the clients
Operational Reliability¹
IT
Paid by the Clients
1 – Maintenance capex is the investment s made for the grid modernizationand improvement in quality of service
Others
8
9. Gross revenues reflects the tariff reduction
impact due to the Law No. 12,783/2013
p
Gross Revenues (R$ million)
3,835
-14%
186
3,283
145
1,362
-27%
993
2,286
1Q12
-6%
2,146
1Q13
Net revenue ex-construction revenue
Deduction to Gross Revenue
Construction revenues
9
10. Energy balance – expected to 2013 (GWh)
Recognition of a provision for the CDE transfer of
funds represented a decrease of 17%
in Parcel A
Parcel A (R$ million)
1,858
,
ITAIPU
22%
BILAT. AES TIETÊ
25%
PROINFA
2%
AUCTION (hydro)
Provision
for the CDE
transfer of
funds
217
15%
Exposure
11
319
1,541
31%
AUCTION (th
(thermal)
l)
-17%
4%
R$ 317 million on the provision of transfer of funds from
CDE, being:
- R$ 100 million – exposure in the short term (R$ 29
million) and h d l i l risks arising f
illi )
d hydrological i k
i i
from th
the
allocation of quotas (R$ 71 million)
- R$ 217 million – thermal plants dispatch
11
103
100
1.523
1,428
1Q13 excluding transfer
funds from CDE
Energy Supply
1Q13
Transmission Charges
CFURH
10
11. Operating Costs and Expenses ¹ (R$ million)
Parcel A on the same level because of lower costs
due to Law 12,783/2013 and the transfer of
funds from CDE
+1%
1,957
1,986
421
444
1,535
1,541
1Q12
1Q13
Energy Supply and Transmission Charges
PMS² and Others Expenses
1 - Depreciation and other operating income and expenses are not included
2 - Personnel, Material and Services
11
12. PMSO manageable by the Company
below the inflation over the period
PMS and other expenses (R$ million)
-3.4%
88
( )
(65)
(60)
(3)
1
69
(8)
444
421
356
356
297
1Q12
FCesp
297
Contingencies, 1Q12
ADA and Manageable
Write-Offs
294
287
Others
Materials
and
Third Party Services
Personal
287
287
1Q13 Contingencies,
Manageable ADA and
Write-Offs
FCesp
1Q13
12
13. EBITDA decrease primarily reflects the reset
and adjustment of tariff on Parcel B
j
Ebitda (R$ million)
(194)
41
298
Market, review and
adjustment in
Parcel B
1 – PMSO: Personnel, Materials, Third Part Services and Others.
6
122
104
1Q12
(23)
Other revenues
and expenses
122
128
PMSO¹
Parcel A
1Q13
13
14. Net income variation reflects tariff reset
Net Income (R$ million)
97
283
699
18
137
(121)
(132)
18
11
(228)
(30)
(121)
-1
(65)
1Q12
1Q13
Adjusted Net Income
Tracking Account for the Parcel A items
Tariff review postponement effect
14
15. Higher cash generation due to reduced
expenses in Parcel A and PMSO
Cash flow (R$ million)
CASH FLOW - R$ Million
INITIAL CASH
1Q12
1Q13
1,390
814
304
385
(191)
(213)
Net Financial Expenses
(22)
(5)
Net Amortization
N A
i i
591
(8)
Pension Fund Expenses
(56)
(55)
Income Tax
(62)
(7)
Disposal of assets
Di
l f
t
-
Operational Cash Generation
Investments
FREE CASH
Dividends
FINAL CASH
8
564
105
(9)
(0)
1,946
919
15
16. Covenants: improvement in the indicators will
be noticed from 2Q13
Covenants
Dívida Líquida
5.5x
Amendment of the covenants limits:
4.4x
Net Debt / Adjusted EBITDA:
3.5x
1.1x
- 5.5x in 1Q13;
- 3 75 in 2Q13
3.75x 2Q13;
- 3.5 x from 3Q13 onwards
3.0
2.4
- Adjusted Ebitda/Financial Expense >1.75x
1Q12
1Q13
Net Debt (R$ billion)
Net Debt/Ebitda Adjusted¹
Covenants N t D bt/Ebitd Adjusted¹
C
t Net Debt/Ebitda Adj t d¹
Cost of
debt
Improvement of indicators will be noticed from
2Q13 due to the end of the negative effect of
d
h
d f h
i
ff
f
1Q12
1Q13
the provision of the negative effects of the
Arerage cost (% CDI)2 112%
110%
postponement of tariff reset in the adjusted
Avarege term (years)
6.4
6.7
Effective rate
12.0%
EBITDA in 1H12
11.7%
16
17. 1Q13 Results
The statements contained in this document with regard to the
business prospects, projected operating and fi
b i
t
j t d
ti
d financial results,
i l
lt
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.