Presentation - 4Q09 and 2009 Results

7/30/2019 Presentation - 4Q09 and 2009 Results

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Results Conference Call2009


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2009 Highlights

Consumption (captive + free) 2.7% up on 2008, driven by the 10.5% growth in

the captive market in 4Q09. Continuous CAPEX increase.

Improvement in quality indicators (DEC/FEC).

EBITDA 2009 of R$ 1,188.0 million, 5.9% down on recurring basis.

Net income of R$ 604.8 million in 2009.

Proposed dividend payment of R$ 432.3 million, for total payout of 75.24% and

yield of 8.14%.

Cash balance of R$ 828.4 million at end of 2009, superior to the amount of R$

590.1 million in 2008.

Net debt of R$ 1,637.1 million, Net debt/EBITDA ratio of 1.4x.

Board approved the acquisition of 2 windmill projects located in Aracati, Cear,with total capacity of 34MW.

Basic engineering project and environmental studies for the Itaocara

hydroelectric project will be concluded in February 2010.

Commencement of works at the Paracambi and Lajes small hydroelectric power

plants.

OPERATINGPERFORMANCE

RESULTS

GENERATION

2

CAPITALSTRUCTURE


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-1.1% -2.4%

+2.7%

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Energy MarketBrazilian and regional consumption

TOTAL MARKET

(Captive and Free Customers)

BRAZIL 1 SOUTHEAST 1 LIGHT 2

1 Source: EPE (Monthly Overview of the Electricity Market)2 Taking into account the power consumed by the free clients CSN, Valesul and CSA, the variation in consumptionwould be -4.4%. To preserve comparability with the market approved by Aneel in the tariff review process, the billedenergy and demand of free customers Valesul, CSN and CSA were excluded, in view of these customers plannedmigration to the core network.


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Electricity Consumption(GWh)

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4

Energy ConsumptionDistribuition

Note: To preserve comparability in the market approved by ANEEL in the tariffadjustment process, the billed energy and demand of the free customersValesul, CSN and CSA were excluded in view of these customers planned

migration to the core network.


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+3.8%

+6.7%

-0.9%

+3.0%

+4.3%ELECTRICITY CONSUMPTION (GWh)

YEAR

Captive MarketForth quarter and 2009 performance


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ELECTRICITY CONSUMPTION (GWh)

NETWORK USE FREE CUSTOMERS

+6.4%

-5.6%

ELECTRICITY DEMAND(GW)

NETWORK USE

1

-8.7%

Free MarketConsumption and billed demand

Note: To preserve comparability in the market approved by ANEEL in the tariff adjustment process, thebilled energy and demand of the free customers Valesul, CSN and CSA were excluded in view of thesecustomers planned migration to the core network.

1 The amount presented in GW is related to the annual sum ofbilled demand each month, considering peak and out-of-peakperiods.


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Investments scheduled till the World Cup in 2014 and theOlympics in 2016

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Revitalization of the Port zone

Expansion of subway system

Urbanization of slums

Depollution of the Rodrigo de Freitas

Lake

Construction of the Metropolitan Arch

Expansion of Tom Jobim airport

Construction of 50,000 housing units

by 2013

T5 Corridor

Rio-So Paulo bullet train Angra 3

Via Light

Investments in optic fibers by 2016

Improvement and acquisition of new

trains by Supervia

Renovation of Hotel and Marina da

Glria

Expansion of hotel capacity (5 new

hotels on the waterfront, 8,000 beds

in ships)

Construction of COMPERJ

Expansion and modernization of

REDUC

Construction of CSA

Eisa naval industry

Sudeste Port

GerdauPort Terminal

Coquepar

CSNItagua Logistics Platform

Construction of Barra da Tijuca

Complex

Construction of Deodoro Complex

Renovation and Expansion of

Maracan Stadium

InfrastructureR$ 52 billion

PrivateR$ 41 billion

OlympicsR$ 4 billion

1 Source: Firjan, Rio de Janeiro Town Hall,Light and Construction Industry Union of Riode Janeiro. Considering the part inside of the State ofRio de Janeiro

Total estimated investments1 of R$ 97 billion


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COLLECTION RATE12 MonthsCOLLECTION RATE BY SEGMENT2009

Collection


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INCORPORATIONGWh

RECOVERYGWh

LOSS EVOLUTION (12 months)

Loss Prevention

165.1%

16.9%


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PADRE MIGUEL: 4,521 CLIENTS

CONSUMPTION/ CLIENT(kWh/MONTH)

19%

SARAPUI: 2,769 CLIENTS


DEN: 15,882 CLIENTS


19%

MARKETBANGU ( kWh / MONTH )

6%

MARKETDUQUE DE CAXIAS ( kWh / MONTH)

MARKETSO JOO DE MERITI ( kWh / MONTH)

6%

New Technologies Program

45%

13%

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NET REVENUE (R$ MN)

NET REVENUE FROM DISTRIBUTION(2009)

NET REVENUE BY SEGMENT (2009)*

1.8%

+0.8%

11

+3.1% a.a.

NET REVENUE EVOLUTION (R$ MN)

*Eliminations not considered

Net Revenue


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MANAGEABLE DISTRIBUTION COSTS

(R$ MN)

R$ MN 2008 2009 Var. (%)

PMSO 505.4 504.0 -0.3%

Provisions 201.1 306.0 52.2%

Depreciation 287.1 280.1 -2.4%

Operating Costs and Expenses


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EBITDA

CONSOLIDATED EBITDA (R$ MN)

EBITDA Margin:68.8%

EBITDA Margin: 23.3%

EBITDA Margin:19.9%

EBITDA BY ACTIVITY*2009


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NET INCOME (R$ MN)

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Net Income


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Dividends

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PAYOUT AND DIVIDENDS POLICY

* Based on the closing price of the previous day to the announcement


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R$ MM 2009

Loss Prevention 164.9

Development of Distribution Network 133.3

Quality Improvements(Optimization of structure and preventative maintenance)

64.7

Generation Maintenance 32.3

New Generation Projects 19.5

Administration 57.6

INVESTMENTS (R$ MN)

Capital Expenditures


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Capital Market After public offering

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SHAREHOLDERS COMPOSITION

Average trading volume: R$ 24.7 million

(2009/07/16 until 2010/02/09)

TRADING VOLUME (R$ MN)


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Controlling Shareholder [52.1%] Free Float[47.9%]

MarketLEPSA

13.03% 13.03% 13.03% 13.03% 24.4% 23.5%

Free Float [47.9%]

MarketLEPSA

13.03% 26.06% 13.03% 24.4% 23.5%

SPE

FIP

>50%


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Forward-Looking Statement

This presentation may include declarations that represent forward-looking statements according to Brazilianregulations and international securities. These declarations are based on certain assumptions and analysesmade by the Company in accordance with its experience, the economic environment, market conditions and

future events expected, many of which are out of the Companys control. Important factors that can lead tosignificant differences between the real results and the future declarations of expectations on events orbusiness-oriented results include the Companys strategy, the Brazilian and international economicconditions, technology, financial strategy, developments of the public service industry, hydrologicalconditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain,goals, expectations and intentions, among others. Because of these factors, the Companys actual resultsmay significantly differ from those indicated or implicit in the declarations of expectations on events or futureresults.

The information and opinions herein do not have to be understood as recommendation to potentialinvestors, and no investment decision must be based on the veracity, the updated or completeness of thisinformation or opinions. None of the Companys assessors or parts related to them or its representatives willhave any responsibility for any losses that can elapse from the use or the contents of this presentation.

This material includes declarations on future events submitted to risks and uncertainties, which are basedon current expectations and projections on future events and trends that can affect the Companys

businesses. These declarations include projections of economic growth and demand and supply of energy,in addition to information on competitive position, regulatory environment, potential growth opportunities andother subjects. Various factors can adversely affect the estimates and assumptions on which thesedeclarations are based on.

Presentation - 4Q09 and 2009 Results

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