2Q13 Results
This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analyses made by the Company pursuant to its experience and the economic environment, market conditions and expected future events, many of which are beyond the Company's control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Company's business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions, uncertainty regarding the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied in forward-looking statements about future events or results. The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation. This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the Company's business. These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the estimates and assumptions on which these statements are based.
Disclaimer
Creation of CPFL Renováveis
651.5
Development Acquisition 12/31/2013 (1) 2016 Assets with PPA
198
328.2
1,153.1
254
1,735.3
328 MW currently under construction
# 1 Renewable Energy Player in Brazil, with 1.7GW of contracted capacity (67% in operation)
3.8 GW high quality pipeline
Regionally diversified portfolio (presence within 8 states) with presence in 4 sources
Contracted Capacity Installed capacity (MW)
(1) Considers the conclusion of the works of 7 (seven) wind farms of the Santa Clara Complex, totalling188 MW which are ready to generate energy, and are entitled to the revenue corresponding to the billing contracted in the Reserve Energy Auction (LER) 2009 – still pending the conclusion of the works of ICG (Deployment of Transmission Exclusively of the Interest of Generation Plants for Shared Connection)
(2) Does not include Rosa dos Ventos ,operating asset, acquired in June/13 which still awaits compliance with contractual provisions before conclusion
Overview of CPFL Renováveis
Long-term PPAs and authorizations/concessions
304.0
197.5
254.0
• Company’s operating portfolio in the 2Q13 was significantly increased by 27.4%, when compared to the 2Q12
(1) Does not include Rosa dos Ventos ,operating asset, acquired in June/13 which still awaits compliance with contractual provisions before conclusion
Small Hydro Plant (MW)
Solar (MWp)
Wind (MW)(1)
Total in Operation (MW) (1)
Biomass (MW)
2Q12 2Q13
307.6 326.6
2Q12 2Q13
367.6 555.5
2Q12 2Q13
0.0 1.1
2Q12 2Q13
905.2 1153.1
2Q12 2Q13
230.0 270.0
Portfolio per source
27.4%
Track Record Execution
Source: ANEEL and Company. (1) Difference between total contracted capacity of 1,735MW and 1,481MW (under construction + acquisitions) refers to assets that shall start operation by 2016. (2) No Considers Rosa dos Ventos projects acquired in operation, incorporation of which is in the process of being concluded. (3) Does not include Rosa dos Ventos acquired in operation and still awaits compliance with contractual provisions before conclusion.
Fusion
2Q13 Highlights
1,153 MW of installed capacity in operation, 27% increase when compared to the 2S12 (905MW)
1S13 Net Revenue reached R$ 416 million, 45%
growth if compared to the 1S12
Rosa dos Ventos' Acquisition, in June, 2013, with two operating assets within Ceará state, totaling 13.7 MW of installed capacity
1S13 Ajusted EBITDA reached R$ 285 million, with margin
of 69% and 66% increase
1S13 investments reached R$ 554 million
CPFL Renováveis S.A. has been traded in the BM&F Bovespa New Market since July 19, 2013 under ticker CPRE3
On June 18, 2013, we acquired 100% of Rosa dos Ventos shares with 13.7 of installed capacity in two operating assets within Ceará state (1);
CE
Aracati
CE
Aracati
Rosa dos Ventos
Assets SIIF Bons Ventos CPFL R
Installed Capacity 13.7 MW
Load Factor (average) 39.0%
Physical Guarantee(average) 5.36 MWm
(1) Acquisition awaits fulfillment of contractual conditions for completion (2) data-base jun/2013
Canoa Quebrada Lagoa do Mato
10.5 MW 3.23 MW
4.10 MWm 1.26 MWm
R$ 350.81 R$ 309.32
DEC/2008 JUN/2009
3.31 MW 1.43 MW
2028 2029
Installed Capacity
Physical Guarantee
PPA (PROINFA) (2)
Start of Commercial Operation
Energy Contracted
Term of PPA
Acquisition of Rosa dos Ventos
Operational Data
2Q12 2Q13
263 316
0 0.3
195 164
89 161
SHP
SOL
WIND
BIO
546
1S12 1S13
592.0 644.0
0 0.6 343.0
478.0 122.0
182.0
Energy Generated per Source (GWh)
640
1,058
1,304
In 1S13 the CPFL Renováveis reached 1,304 GWh of generated energy, a 23.3% increase compared to the same period of 2012, due to growth in the portfolio in operation
Note: The energy generation data does not consider the Santa Clara Complex, which is ready to generate energy and has been receiving the revenue of its contracts – conclusion of the construction of ICG still pending
17.2%
23.3%
Net Revenue
The good performance of net revenues was increased by the assets that entered in operation in 2012 (Bio Ipê, Bio Pedra, Santa Clara Wind Farm, Solar Plant Tanquinho and SHP Salto Góes), in addition to the contribution of acquisitions of Bons Ventos S.A. and the Ester Plant that was incorporated in June
and October 2012
Net Revenue
42% SHP
0.6% Solar
12% Bio
45% Wind
2Q12 2Q13
151.1 186.7
1S12 1S13
285.8 415.7
23.5%
45.4%
Per Source
• Increase mainly explained due to extraordinary expenses energy purchase and charges
• Furthermore, CPFR Renováveis presented extraordinary expenses with energy purchase and sector charges of R$ 22.8 million in 2Q13 and R$ 46.0 million in 1S13
Cost of energy generation and General and Administrative Expenses
C
osts
– R
$ m
m
Expe
nse
s –
R$
mm
2Q12 2Q13
70.9 111.0
56.5%
1S12 1S13
130.5
230.6
76.6%
2Q12 2Q13
48.3 64.7
33.8%
1S12 1S13
91.4 118.4
29.6%
Ebitda Ajusted2T13
EBITDA
171.4 129.9
46.0 16.3 239.0
EBITDA 2Q12
Net Revenue Extraordinary expenses
PMSO and others
EBITDA 2Q13
39.4%
EBITDA 1S12
Net Revenue Extraordinary expenses
PMSO and others
EBITDA 1S13
60.8% 52.9%
60.0% 57.5% Margem EBITDA
91.9 35.6 98.7 22,8 6.0
EBITDA Margin
7.4%
• Increased portfolio in operation (R$ 29.6 million)
• Extraordinary expenses (R$ 22.8 million)
65.1%
121.5
Ebitda Ajusted1S13
68.6%
285.0
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EBITDA Ajusted 1S13
• Increased portfolio in operation (R$ 113.6 million)
• Extraordinary expenses (R$ 46.0 million)
• CPFL Renováveis structured itself to increase its asset portfolio
• Costs and expenses while many assets still under construction
• Extraordinary expenses (R$ 22.8 million in the 2Q13 and R$ 46.0 million in the 1S13)
• 1st semester sazonality results (generally inferior to 2nd semester)
Net Results
2Q12 2Q13
(5.5)
(51.6) -837%
1S12 1S13
5.5
(66.8)
2013 2014 2015 2016 2017 2018+
Debt Amortization (R$ mm)
• Average maturity: 6.8 yeas • Average nominal cost: 7.61% (98.6% of CDI)
Debt Profile
(1) refers to funds obtained for projects under construction that have not yet obtained the disbursements of its long-term debt
Debt Profile (June, 2013)
Bridge Loans (1)
CDI 29%
Fixed 13%
TJLP 53%
TJ6 3%
IGPM 2%
3,854.4
777.5
3,076.9
4,657.8
528.3
4,129.5
3,504.5
349.9
3,569.5
1,088.3
June 30, 2012 June 30, 2013
Long Term Cash Short term Net debt Net debt/Ebitda 7.2x
Net Debt (R$ million) Debt by Indexator(%)
Projects under Construction
92% concluída
Start of operation
Installed Capacity (MW)
Assured Energy(MWm)
Financing PPA
3Q13 50 18.0 BNDES (contracted and partially disbursed) ACL – 20 years
UTE Alvorada
92% concluded
Projects under Construction
UTE Coopcana
95% concluded
Start of operation
Installed Capacity (MW)
Assured Energy(MWm)
Financing PPA
3Q13 50 18.0 BNDES (contracted and partially disbursed) ACL - 20 years
Projects under Construction
Complex dos Ventos II
82% concluded
Start of operation
Installed Capacity (MW)
Assured Energy(MWm)
Financing PPA
3Q13 30 15.0
BNDES (under approval)
(bridge - contracted and
disbursed)
LER aug/10 - 20 years
1) Macacos, Pedra Preta, Costa Branca e Juremas;
Start of operation
Installed Capacity (MW)
Assured Energy(MWm)
Financing PPA
4Q13 78.2 37.5
BNDES (bridge - contracted and
partially disbursed, long term under analysis)
LFA aug/10 - 20 years
Projects under Construction
Complex Macacos I1
61% concluded
1) Atlântica I, II, IV e V;
Projects under Construction
61% concluída
Start of operation
Installed Capacity (MW)
Assured Energy(MWm)
Financing PPA
4Q13 120 52.7
BNDES (bridge contracted and
disbursed, long term under analysis)
(bridge - contracted and disbursed)
LFA 2010 - 20 years
Complex Atlântica1
61% concluded
Start of operation 1Q16 3Q16
Installed Capacity (MW) 82.0 172.0
Assured Energy(MWm) 40.2 89.0
Financing BNDES (being structured)
BNDES (being structured)
PPA ACL - 19 years ACL - 20 years
1) Campo dos Ventos I, III, V; 2) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula São Domingos e Ventos de São Martinho;
Projects under Construction
10% concluded
Complex Campo dos Ventos1
8% concluded
Complex São Benedito2
Lock-up: • 8 months for 100% of shareholding interest for selling
shareholders, FIP Brasil Energia and Previ
• 6 months for 100% of shareholding interest for Company, controlling shareholders and management
• Additional Lock-up of 6 months for 60% of shareholding interest for selling shareholders, FIP Brasil Energia, Previ, controlling shareholder and management
Ticker: CPRE3
Listing Segment: BM&Bovespa new market
• The Company concluded its Initial Public Offering (IPO)(1) on July, 2013
• Total amount of R$ 900 million: • R$ 350 million as primary offering • R$ 550 million as secondary offering
Capital Markets
(1) The offering is still under way at this time, in the so-called stabilization period, hence the closing announcement has not been published until this date.
9.4% 9.2% 7.6% 5.0% 3.2% 2.5% 63.0% n.a.
5.6% 5.5% 7.1% 3.0% 1.9% 1.5% 59.0% 9.1%
Prior to Offering
After Offering
Market
n.a.
7.3%
Shareholder structure
Quotations and Charts
• Currently, the Company’s market value is equivalent to R$ 5.3 billion
• More than 4.7 million were traded in shares (~ R$ 56 million)
• Average daily volume of 262 thousand shares (~ R$ 3 million)
Volume (amount) Price (R$)
Contacts
Closing Rate: 08/13/2013: R$ 12.14
Market Value R$ 5.34 Billion | US$ 2.31 Billion
Miguel Saad
President Director Marcelo Souza
Financial and Investor Relations Director Maria Carolina Gonçalves
Investor Relations Superintendent Daniele de Oliveira
Investor Relations Analyst Priscila de Oliveira
Investor Relations Analyst E-mail: [email protected] Telephone: 11- 3157-9305 Press Agency RP1 Comunicação Empresarial E-mail: [email protected] Telphone: 11-5501-4655
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