4Q12 R lt4Q12 Results
February 2013February, 2013
2012 Highlights
Power generation 27% higher than the physical guarantee and 3% higher than 2011
- 4.4% exposure to the spot market from September to December, 2012 due to the lowering of physicalOperationalOperational
p p p , g p yguarantee, resulting in major cost with energy purchase
Investments of R$ 139 million mainly focused on power plant’s modernization, especially Nova Avanhandava andIbitinga
288 MWavg of energy sold through bilateral contracts in the free market totaling a portfolio of 320 MWavg
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
288 MWavg of energy sold through bilateral contracts in the free market, totaling a portfolio of 320 MWavg
FinancialFinancial Increase of 15% in 2012 operating costs and expenses, mainly with materials and outsourcing
Ebitda reached R$ 1,542 million, with margin of 73%
Net income of R$ 901 million, an increase of 7% in comparison with 2011
The Energy Costs Reduction Program regulated on September 11th, 2012, through the PM 579, that wasconverted into the Law No. 12,783, on January 14th, 2013
RegulatoryRegulatory
21 – 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
P l f di t ib ti f l t di id d i th t f R$ 182 illi R$ 0 46 h
2012 Highlights
Proposal of distribution of complementary dividend in the amount of R$ 182 million, R$ 0.46 per common shareand 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$0.07 per preferred share, to be submitted to the 2013 General Shareholders Meeting
P t f 108% i 2012
DividendsDividends
Safety: no accidents involving own employees
- 50% drop in the number of accidents involving the outsourced employees, being five accidents with no
- Payout of 108% in 2012
SocialSocialabsence. Since February 2009, there were no accidents in the Company’s reservoirs involving the population.
Communities Development and Valuing: social private investment of R$ 12.8 million in education, culture, sportsand inclusive professional training, benefiting around 148.500 people
National Quality Award – PNQ 2012 of Fundação Nacional da Qualidade – FNQ
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.EnvironmentalEnvironmental
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
AwardsAwards
3
International Certification PAS-55 of assets reliability and maintenance for companies of the Society forMaintenance & Reliability Professional
Guia Exame de Sustentabilidade: AES Brasil group was recognized, by Exame magazine, as one out of twentymodel companies in sustainability
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%
62%67
%
125% 124%127%
48%
33%
49%
6
48%
39%
1,665 1,599 1,582 1,629 3
16%
2009 2010 2011 2012
, 1,582
A. Vermelha Promissão B. Bonita Caconde
2011 2012 Generation/Physical guarantee
2009 2010 2011 2012
Generation - Mwavg
1 – As of 12/28/2012. 2 – Generated energy divided by the amount of hours in the period
4
Exposure to higher spot prices marked the 4Q12
PLD submarket SE/CO – Monthly Average (R$/MWh)Physical Guarantee Allocation (MW avg)
376
45
23 295
318375
193 181 183
280 260
2
6 161
89 77 76 72
13 14
28 22 32 68
132 138
117
72 29 48
26 12
17 32 23 20 21 37 46 44 23 51
125
181
118 91
119 183
-21 -42-108
-32
jan feb mar apr may jun jul aug sep oct nov decjan feb mar apr may jun jul aug sep oct nov dec
Secondary energy Lowering physical guarantee2010 2011 2012 Spot cost (R$ million)
51 – Total energy purchase cost in the spot market
2012 investment mainly focused on power plant’s modernization, especially Nova Avanhandava
Investments (R$ million) 2012 Investments
p yand Ibitinga
19
175 139 89%
156200
3
56 66156 139
51 66
53%8%
2011 2012 2013 (e) 4Q11 4Q12
I t t N SHPP *
Equipment and Maintenance
New SHPPs*
6* Small Hydro Power Plants
Investments New SHPPs* IT Projects
Higher volume of billed energy in ERM1 and other bilateral contracts, with reduction of billed
16,728
energy in the spot market in 2012Billed Energy (GWh)
11%
1,524
1,141 554
615 15,128 11%
1,942 3,834
,
-8%
11,108 11,138
332207 194
4,006 3,696
58
-8%
2011 2012 4Q11 4Q12
3,063 2,579
403 864 332 58
2011 2012 4Q11 4Q12
1 - ERM – Energy Reallocation Mechanism 7
AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts
Formation of clients portfolio
Clients portfolio evolution in 2012
• Goals 2011/2012: commercial
initiatives to expand clients
portfolio in the free market
• The current portfolio comprises 259
320 320 Mwavg, of which 288 MWavg
were sold in 2012
• 143 Mwavg were sold to 2016 3284 90
259
onwardBefore
dec/20111Q12 2Q12 3Q12 4Q12
32
Mwavg
8
Readjustment of 5% in the bilateral contract with AES Eletropaulo and higher spot prices
Net revenue (R$ million)
contributed to the net revenue growth in 2012
12%
1 886 2,112
-9%547859
1431,886 2,112
1,773 1,89119 19
542 494
2011 2012 4Q11 4Q12
508 44915 25
19 19
AES Eletropaulo Spot/MRE Other bilateral9
2011 2012 4Q11 4Q12
Expenses with energy purchased for resale pressured costs in 2012
Operational costs and expenses¹ (R$ million)
resale pressured costs in 2012
113 10 5 16 23 9 5
420556 565 570
2011 Energy purchased for
PCH Minas Claim in Nova Avanhandava
Operating allowances
Personnel, material and
Transmission and
Financ. Comp. for use of
2012
1 – Do not include depreciation and amortization; 10
purchased for resale
Avanhandava allowances and other expenses
material and outsourcing
and connection
for use of water res.
Ebitda growths 5%, with margin of 73% due to thereadjustment on the bilateral contract with AES Eletropaulo
Ebitda (R$ million)
and higher costs of energy purchased for resale in 2012
78% 4Q12 Ebitd i fl d b th73% 77%59%
• 4Q12 Ebitda influenced by the
cost of energy purchased for
resale.
E l di th ff t f th
1.466 1.542
419 292
• Excluding the effect of the
exposition to the spot market, the
4Q12 Ebitda would be of R$ 336
illi ith i f 68 1%
Ebtida Margin (%)
2011 2012 4Q11 4Q12
292
Ebitda
million, with margin of 68.1%
11
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)
4Q11 4Q122011 2012(4 3) (4 0)
• 1st emission of debenture maturing in
-8%
(47) (42)
(4.3) (4.0)g
2015 attached to the CDI + 1.20%
• Cash and cash equivalents: short-
term operations, with average return p g
of 102% of CDI in 2012
-9%
121 – Brazilian interbank interest rate
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)
Proposal of dividends distribution in the amount of R$ 182 illi l t d t th 4Q12
110%108% 108%
104%
R$ 182 million related to the 4Q12:
- R$ 0.46 per common share
- R$ 0.50 per preferred share
11% 12%
3% 3%
- estimated payment date: May 7, 2013
845 901
2011 2012 4Q11 4Q12
263 181
Pay-out13
Yield Preferred Shares
Net Profit
2012 cash generation reflects higher revenue with the bilateral contract with AES Eletropaulo
Final Cash Balance (R$ million)Operating Cash Flow (R$ million)
and CCEE (spot + ERM)
+22% -11%-10%
-7%-11%
1.3501.643
404 359
442 397
2011 2012 4Q11 4Q12
404 359
2011 2012
14
Net debt/Ebitda stable in 0.3 times
Net Debt (R$ billion) Debt Amortization Schedule (R$ million)
0,63 0,61
0,3x 0,3x
0,48 0,52
300 300 300
2011 2012 2013 (e) 2014 2015
2011 2012
Average Cost (% CDI)1 115% 128%
Debt costDebt costNet Debt/EbitdaNet Debt
Gross Debt/Ebitda
Debt amortization flow (R$ million)
Gross debt/Ebitda of 2.5x
Ebitda/Financial expenses of 1.75x
g ( )
Average Term (years) 2.3 1.3
Effective Rate 12.1% 9.8%15
CovenantsCovenants
1 – Percentage of CDI (Interbank Deposit Certificate)
4Q12 R ltThe statements contained in this document with regard to thebusiness prospects projected operating and financial results
4Q12 Results
business prospects, projected operating and financial results,and growth potential are merely forecasts based on theexpectations of the Company’s Management in relation to itsfuture performance.Such estimates are highly dependent on market behavior andSuch estimates are highly dependent on market behavior andon the conditions affecting Brazil’s macroeconomicperformance as well as the electric sector and internationalmarket, and they are therefore subject to changes.