4Q13 Results Presentation

23
February 28 th , 2014 4Q13 Results

Transcript of 4Q13 Results Presentation

Page 1: 4Q13 Results Presentation

February 28th, 2014

4Q13 Results

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Disclaimer

The stand-alone and consolidated financial statements were prepared in accordance with the accounting

principles adopted in Brazil, which include corporation law, the pronouncements, instructions and

interpretations issued by the Accounting Pronouncements Committee (CPC) and the regulations of the

Securities and Exchange Commission of Brazil (CVM), combined with specific legislation issued by the

National Electric Power Agency (ANEEL). As the industry regulator, ANEEL has powers to regulate the

concessions. The results are usually presented in both IFRS and former formats in order to permit

comparisons with other periods. However, the results presented in “Regulatory” format are not audited.

ALUPAR uses the audited results based on the IFRS principles to declare dividends.

The forward-looking statements contained in this document relating to the business outlook, projections of

operational and financial results and the growth prospects of ALUPAR are merely projections, and as such

are based exclusively on management’s expectations for the future of the business. These expectations

depend materially on changes in market conditions and the performance of the Brazilian economy, the

sector and international markets and therefore are subject to change without prior notice.

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Alupar at a Glance Alupar is the only listed company in Brazil operating in transmission and generation segments

Geographic Footprint of the Assets

Operational Under construction

Portfolio of 32 long-term

concessions, starting to expire

in 2030 (transmission) and

2034 (generation)

Transmission

Generation

Alupar Concession – Transmission and Generation

Today

Lifetime Transchile

Operating Under Construction

Lifetime

Lifetime

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235/137/27 V 50.01%

T 42,51%

100%

50.01% V 50.02%

T 50.02%

V 100%

T 50.01%

70.02%

V 50.01%

T 42.51%

99.70%

41.00%

41.00%

41.00%

Transminas

47.51%

51.00%

V 50.02%

T 50.02%

51.00%

80.00% 15.00% 80.00% 20.00%

Transirapé

Transleste

STC

EBTE

Transudeste

Lumitrans

ETES

50.01%

V 100%

T 50.01%

STN ENTE EATE

ECTE

ERTE

ETEP

ETEM 62.06%

ETVG

ESDE

100%

TNE 51.00%

99.89%

100%

ETSE 100%

46.00%

TME

51.00%

51.00% Transchile

Company’s Assets

TBE

TBE

TBE

TBE

TBE TBE TBE

TBE TBE

TBE

Note:

(1) TBE’s 10 transmission assets: EATE, EBTE, ECTE, ENTE, ERTE, ESDE, ETEP; ETSE, LUMITRANS e STC.

10.00%

10.00%

10.00% 82.00%

Generation Under Development TBE1 TBE group’s assets Transmission

Lavrinhas

Rio Claro

Ijuí

Queluz

Ferreira

Gomes

Risaralda

Energia

dos Ventos

Verde 08

La Virgen

Água Limpa

65.00%

90.00%

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Alupar’s Business Culture

Financial Discipline

Responsible and Sustainable Growth

Efficient Capital Structure

Corporate Governance and Transparency

Skilled and Motivated Team

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Notice to the Market, December 06th, 2013

Market Maker Contract

ALUPAR INVESTIMENTO S.A., a publicly-held company registered with the CVM under no. 21490, with

headquarters at Avenida Doutor Cardoso de Melo, 1.855, Bloco I, 9th floor, room A, in the city and state of

São Paulo, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no. 08.364.948/0001-38

(“Alupar”), hereby informs its shareholders and the market in general, pursuant to CVM Instruction 384 of

March 17, 2003 (“ICVM 384”), that it has contracted BTG Pactual Corretora de Títulos e Valores

Mobiliários S.A. (“BTG Pactual”), with headquarters at Avenida Brigadeiro Faria Lima, nº 3.729, 10th floor,

part, in the city and state of São Paulo, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no.

43.815.158/0001-22, to act as the market maker for its units, traded under the ticker ALUP11 on the

Securities, Commodities and Futures Exchange – BM&FBOVESPA S.A. for a period of twelve (12)

months, automatically renewable for equal terms if there is no opposition from either party, in order to

“make a market” for and increase the liquidity of the units. BTG Pactual will begin its activities as market

maker for the units on December 7, 2013. Alupar has rescinded its unit market maker contract with

Itaúvest DTVM S.A. (“Itauvest”), with headquarters at Praca Alfredo Egydio Souza Aranha, 100 - T.

Conceição, 7th floor, City Code 04344-902, in the city and state of São Paulo, inscribed in the corporate

roll of taxpayers (CNPJ/MF) under no. 92.880.749/0001-99, which will remain in effect until December 6,

2013.

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Material Fact, December 11th, 2013

La Virgen Acquisition

Location: Chanchamayo Province, Peru

Installed Capacity: 64.0 MW

Assured Energy: 40.4 MW

Startup: 2016

Alupar’s Stake: 65%

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Material Fact, December 13th, 2013

Alupar negocia 6,0 MW médios da PCH Água Limpa a R$ 138,00/MWh

Location: Piracicaba river, municipality of Antônio Dias (MG)

Installed Capacity: 23.0 MW

Assured Energy: 11.9 MW

Startup: 2018 (ANEEL)

Alupar’s Stake: 90%

Auction 10/2013-ANEEL

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TNE – Suspension of the injunction that paralysis the construction of the transmission line

Notice to the Market, December 18th, 2013

ALUPAR INVESTIMENTO S.A., a publicly-held company registered with the CVM

under number 2149-0, with headquarters at Avenida Doutor Cardoso de Melo,

1.855, Bloco I, 9th floor, room A, in the city and state of São Paulo, inscribed in the

corporate roll of taxpayers (CNPJ/MF) under number 08.364.948/0001-38

(“Alupar” or “Company”), given the news published today concerning its subsidiary

Transnorte Energia S.A. (“TNE”), responsible for the installation of a 715 km

transmission line and three substations, connecting the cities of Manaus (AM) and

Boa Vista (RR), hereby informs its shareholders and the market in general that:

• TNE was notified on December 12, 2013 of an injunction granted by the

Regional Federal Court of Amazonas suspending the procedures related to

the environmental licensing of said transmission line;

• On December 17, 2013, when adjudicating the petition to suspend the

injunction filed by the Federal Government and ANEEL, the First Region

Federal Appellate Court lifted said injunction, allowing the immediate

recommencement of the works.

The Company is certain that TNE has complied with all its legal obligations and

procedures regarding the environmental licensing process with all the bodies

involved.

The Company is closely motoring the matter and will keep its shareholders and the

market informed of any further developments.

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Electricity´s Price

-

- Increase in thermal generation

Delays in construction of greenfield projects

Recent adoption of risk aversion procedures in the electricity spot price (PLD) formation

May pressure up electricity prices in the near future

Source: ONS/CCEE Source: ONS

Brasil - SIN

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Financial Highlights

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Financial Highlights - Consolidated

Key Indicators "CORPORATE LAW (IFRS)"

R$ MM 4Q13 4Q12 Var.% 2013 2012 Var.%

Adjusted Net Revenue 321.1 271.2 18.4% 1,206.4 1,089.4 10.7%

EBITDA (CVM 527) 249.3 219.0 13.9% 1,001.1 905.2 10.6%

Adjusted EBITDA Margin 77.7% 80.7% -3.0 p.p.. 83.0% 83.1% -0.1 p.p..

EBITDA (Excluding GSF effects) - - - 1,014.7 - 12.1%

EBITDA Margin (Excluding GSF effects) - - - 84.1% - 1.0 p.p..

Financial Results (44.9) (52.5) -14.4% (182.2) (223.8) -18.6%

Consolidated Net Income 164.4 136.4 20.5% 655.0 538.9 21.5%

Subsidiaries` Minority Interest 96.4 83.2 15.9% 365.1 318.5 14.6%

Net Income – Alupar 68.0 53.2 27.8% 289.9 220.4 31.5%

Earnings per UNIT (R$)* 0.33 0.26 27.8% 1.39 1.06 31.5%

Net Income – Alupar (Excluding GSF) - - - 295.1 - 33.9%

Net Debt** 2,405.9 2,705.1 -11.1% 2,405.9 2,705.1 -11.1%

Net Debt / EBITDA** 2.4 3.1 2.4 3.0

Key Indicators "REGULATORY"

R$ MM 4Q13 4Q12 Var.% 2013 2012 Var.%

Net Revenue 292.3 258.3 13.2% 1,111.1 1,023.8 8.5%

EBITDA (CVM 527) 234.2 203.1 15.3% 909.1 828.7 9.7%

EBITDA Margin 80.1% 78.6% 1.5 p.p. 81.8% 80.9% 0.9 p.p.

EBITDA (Excluding GSF effects) - - - 922.7 - -

EBITDA Margin (Excluding GSF effects) - - - 83.0% - -

Financial Results -44.9 -52.5 -14.4% -182.2 -223.7 -18.5%

Consolidated Net Income 136.5 107.3 27.2% 493.3 403.1 22.4%

Subsidiaries` Minority Interest 82.2 74.6 10.2% 280.9 256.6 9.5%

Net Income – Alupar 54.3 32.8 65.9% 212.4 146.6 44.9%

Earnings per UNIT (R$)* 0.26 0.16 65.9% 1.02 0.70 44.9%

Net Income – Alupar (Excluding GSF) - - - 217.6 - 48.4%

Net Debt** 2,405.9 2,705.1 -11.1% 2,405.9 2,705.1 -11.1%

Net Debt / EBITDA*** 2.6 3.3 2.6 3.3

*Net Income / Units Equivalents (208.300.600) ** Including Securities under Non–Current Assets ***Annualized EBITDA

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Consolidated Financial Highlights - IFRS

219.0

249.3

80.7% 77.7%

4Q12 4Q13

EBITDA (R$ MM) and Margin (%)

53.2

68.0

4Q12 4Q13

Net income (R$ MM)

271.1

321.1

4Q12 4Q13

Adjusted Net Revenue (R$ MM)

905.2

1,001.1 1,014.7 13.6

2012 2013 AdjustedGSF

Adjusted2013

EBITDA (R$ MM) and Margin(%)

83.0% 84.1%

83.1%

200.4

289.9 295.1 5.2

2012 2013 AdjustedGSF

Adjusted2013

Net Income (R$ MM)

1,089.4 1,206.4

2012 2013

Adjusted Net Revenue (R$ MM)

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Consolidated Financial Highlights - Regulatory

203.1

234.2

4Q12 4T13

EBITDA (R$ MM) and Margin (%)

80.1% 78.6%

32,8

54.3

4Q12 4Q13

Net Income (R$ MM)

258.3

292.3

4Q12 4q13

Net Revenue (R$ MM)

1,023.8 1,111.1

2012 2013

Net Revenue (R$ MM)

828.7

909.1 922.7 13.6

2012 2013 AdjustedGSF

Adjusted2013

EBITDA (R$ MM) and Margin (%)

81.8% 83.0%

80.9%

146.6

212.4 217.6 5.2

2012 2013 AdjustedGSF

Adjusted2013

Net Income (R$ MM)

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Transmission Financial Highlights - Combined

Key Indicators "CORPORATE LAW (IFRS)"

R$ MM 4Q13 4Q12 Var.% 2013 2012 Var.%

Adjusted Net Revenue 290.1 258.0 12.4% 1.111.5 1.003.9 10.7%

Adjusted Operating Costs* -35.8 -19.8 81.0% -91.3 -71.1 28.5%

Depreciation / Amortization -1.6 -3.6 -56.3% -5.8 -5.6 3.6%

Operating Expenses -13.3 -12.8 3.8% -39.2 -36.5 7.2%

EBITDA (CVM 527) 241.0 225.4 6.9% 981.0 896.3 9.4%

Adjusted EBITDA Margin 83.1% 87.4% -4.3 p.p. 88.3% 89.3% -1.0 p.p.

Financial Results -31.2 -37.6 -17.2% -119.3 -141.5 -15.7%

Net Income 178.5 162.7 9.7% 726.2 640.8 13.3%

Net Debt** 1,439.9 1,400.4 2.8% 1,439.9 1,400.4 2.8%

Net Debt / EBITDA*** 1.5 1.6 1.5 1.6

Key Indicators "REGULATORY"

R$ MM 4Q13 4Q12 Var.% 2013 2012 Var.%

Adjusted Net Revenue 257.7 241.8 6.6% 995.3 923.1 7.8%

Adjusted Operating Costs -20.0 -18.7 6.9% -75.6 -69.5 8.7%

Depreciation / Amortization -28.5 -29.9 -4.8% -112.7 -109.1 3.3%

Operating Expenses -13.3 -12.8 3.8% -39.1 -36.5 7.2%

EBITDA (CVM 527) 224.4 210.3 6.7% 880.6 817.1 7.8%

Adjusted EBITDA Margin 87.1% 87.0% 0.1 p.p. 88.5% 88.5% 0.0 p.p.

Financial Results -31.2 -37.6 -17.2% -119.3 -141.4 -15.6%

Net Income 148.4 132.3 12.2% 550.6 493.5 11.6%

Net Debt** 1,439.9 1,400.4 2.8% 1,439.9 1,400.4 2.8%

Net Debt / EBITDA*** 1.6 1.7 1.6 1.7

*Adjusted Operating Costs: excluding infrastructure costs

** Including Securities under Non-Current Assets

*** Annualized EBITDA

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Transmission Financial Highlights - Combined

Corporate Law (IFRS)

258.0 290.1

1,003.9 1,111.5

4Q12 4Q13 2012 2013

Adjusted Net Revenue (R$ MM)

241.8 257.7

923.1 995.3

4Q12 4Q13 2012 2013

Net Revenue (R$ MM)

132.3 148.4

493.5 550.6

4Q12 4Q13 2012 2013

Net Income (R$ MM)

Regulatory

225.4 241.0

896.3 981.0

87.4% 83.1% 89.3% 88.3%

4Q12 4Q13 2012 2013

EBITDA (R$ MM) and Margin (%)

210.3 224.4

817.1 880.6

87.0% 87.0% 88.5% 88.5%

4Q12 4Q13 2012 2013

EBITDA (R$ MM) e Margem (%)

162.7 178.5

640.8

726.2

4Q12 4Q13 2012 2013

Net Income (R$ MM)

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Generation Financial Highlights - Combined

Key Indicators "CORPORATE LAW (IFRS)"

R$ MM 4Q13 4Q12 Var.% 2013 2012 Var.%

Net Revenue 49.4 38.9 27.0% 181.3 160.7 12.8%

Operating Costs -4.2 -26.9 -84.4% -27.4 -33.7 -18.6%

Depreciation & Amortization -8.4 -8.4 - -33.4 -32.4 3.2%

Energy Purchases -3.6 -1.1 231.5% -28.3 -23.3 21.3%

Operating Expenses -4.1 14.0 - -12.9 -11.5 12.2%

EBITDA (CVM 527) 37.6 24.9 50.9% 112.7 92.2 22.3%

EBITDA Margin 76.0% 64.0% 12.0 p.p. 62.2% 57.4% 4.8 p.p.

EBITDA (Excluding GSF) - - - 126.3 - 37.0%

EBITDA Margin (Excluding GSF) - - - 69.7% - 12.3 p.p.

Financial Result -11.1 -13.6 -18.4% -45.6 -54.7 -16.7%

Net Income / Loss 15.4 2.2 - 29.0 2.5 -

Net Income (Excluding GSF) - - - 41.0 - -

Net Debt* 1,114.8 1,120.7 -0.5% 1,114.8 1,120.7 -0.5%

Net Debt / EBITDA*** 7.4 11.3 9.9 12.2

* Including Securities under Non-Current Assets

**Annualized EBITDA

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Generation Financial Highlights - Combined

92.2

112.7

126.3 13.6

2012 2013 AdjustedGSF

Adjusted2013

EBITDA (R$ MM) and Margin (%)

62.2%

69.7%

38.9

49.4

4Q12 4Q13

Net Revenue (R$ MM)

160.7

181.3

2012 2013

Net Revenue (R$ MM)

24.9

37.6

64.0% 76.0%

4Q12 4Q13

EBITDA (R$ MM) and Margin (%)

2.5

29.0

41.0 12.0

2012 2013 AdjustedGSF

Adjusted2013

Net Income (R$ MM)

57.4%

2.2

15.4

4Q12 4Q13

Net Income (R$ MM)

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Indebtedness - Consolidated

34,0%

35,3%

15,2%

0,2%

15,3% CDI

TJLP

Fixed

Foreign Currency

IPCA

Gross Debt by Index (%)

1.361,2

293,9

153,3 5,7

1.469,0

BNDES (TJLP / IGP-M)

Other Development Banks

Other Local Currency

Foreign Currency

Debentures

Gross Debt Composition (R$ MM)

22%

78%

Debt Profile (%)

Short Term Long Term

3,283.1

877.2

2,405.9

Gross Debt Cash and Cash Equivalents Net Debt

Total Debt Dec/13(R$ MM)

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Indebtedness - Controlling

44.8%

6.1%

49.1%

CDI

Fixed

IPCA

Gross Debt by Index (%) Gross Debt Composition (R$ MM)

19%

81%

Debt Profile (%)

Short Term Long Term

682.9

[VALOR]38.3

644.6

Gross Debt Cash and CashEquivalents

Net Debt

Total Debt Dec/13

641.4

0.2

41.3 Debentures

Other

Finep

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Indebtedness - Consolidated

Moody’s Investors Service

Corporate (national scale) AA+ Corporate (national scale) Aa2.br Corporate (globa scalel) Ba1

255.4

75.4

271.7

318.0 278.0 251.1135.8

930.6

743.6

126.9

89.3

83.8 24.1124.1

68.9

257.7

Cash andCash

Equivalents

2013 2014 2015 2016 2017 2018 after 2018

Debt Amortization Schedule (R$ million)

Subsidiaries Parent Company Bridges Loans

160.4

174.8

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Dividends

In accordance with the Company’s Bylaws, shareholders are entitled to receive minimum non-cumulative dividends

equivalent to 50% of net income for each fiscal year, plus or minus legally-constituted reserves.

On February 27, 2014, the Board of Directors decided, the distribution of intermediates dividends in the amount of R$

156,225,450.00 regarding to the Profit Reserves recorded in the balance of December, 31, 2012 and recommended the

distribution of R$ 193,719,558.00 income for the year of 2013, which should be decided at the Annual General Meeting to be

held on April 16, 2014. Thus total shareholder payments will reach R$350.0 million, equivalent to R$1.68 per share.

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IR Contacts

Marcelo Costa

IRO

Luiz Coimbra

Kássia Orsi Amendola

IR Analyst

Tel.: (011) 2184-9600

[email protected]

February, 28th, 2014