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2012 Brazil ConferenceBank of America Merrill Lynch
March, 2012
2
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
3
Sales and Financials
Annex
4
Corporate overview – Highlights
The largest
private player
in the Brazilian Electric Sector
� R$ 28+ billion of Market Cap as of March 13, 2012
� Leadership in distribution of energy through 8 subsidiaries Presence concentrated in the most developed regions of Brazil
� Leadership in Commercialization and a world-class provider of Value-Added Services
� Leadership in Renewable Energy in Latin America
� 2,768 MW of generation installed capacity, more than 90% from renewable sources
� 2011 EBITDA of R$ 3.8 billion and net income of R$ 1.6 billion
� Listed on Bovespa’s Novo Mercado and on NYSE (ADR Level III)
� Differentiated Dividend Policy: minimum of 50% of net income, semi-annually. Practices 95% since IPO in 2004
1) Aneel – last available information 2) Concession area sales (excludes CCEE) 3) In Apr, 2011. Generation figures after ERSA and Jantus’ deals closing 4) Includes CPFL Energia’sstake in CPFL Renováveis (63.0%) 5) 2011 accumulated (October, 2011) 6) Take into account sales of commercialization and generation outwards the Group5
Brazil’s largest player in the electric sector
CPFL 2%3
CPFL Energia | 2011
CPFL 11%5
Others: 87%
CPFL 13%1
Market-share
DistributionConcession Area (captive + TUSD)
• 7.0 million customers• 569 municipalit ies• Sales of 54,590 GWh2
GenerationFocused mainly in renewables
• 64 power plants in operation• 2,644 MW installed capacity• 30 plants under construction4
CommercializationFree Energy market and Services
• 140 free customers• Sales of 12,173 GWh6• Added value services
Market leader
3rd private generator
Main player
Others: 98%
Others:89%
3 majorplayers: 34%
3 majorplayers: 28%
3 majorplayers: 29%
DISTRIBUTION
COMMERCIALIZATION
5
GENERATION
35 SPPs
33 Wind Farms8 (CE), 21 (RN) and 4 (RS)
7 TPPs Sugarcane4 (SP), 1 (RN), 1 (MG) and 1 (PR)
5 (SC) and 4 (RS)
6
Corporate structure | CPFL Energia (December 2011)Increased stake at CPFL Renováveis to 63.00% and at Epasa to 52.75% as from Dec/11
6
Free Float
DISTRIBUTION
GENERATION
3
COMMERCIALIZATION
RENEWABLES
Investco
Paulista Lajeado
SERVICES
1
1) C ontrolling shareholders; 2) Includes the 0.1% direct stake owned by C amargo Corrêa S.A.; 3) Termoparaíba and Termonordeste Thermoelectric F acilities; 4) C PFL Energia owns a 63.0% indirect interest in C PFL Renováveis through C PFL Geração, with 35.5% and C PFL Brasil w ith 27.5%
7
Best corporate governance practices
7
• Shares listed in differentiated segments:• Bovespa Novo Mercado• NYSE (ADR Level III)
• Compliant with the Sarbanes-Oxley Act
• Board of Directors composed by 7 members:• 1 Independent Member• Advised by 3 Committees
• Self-Assessment through Fiscal Council
• Enforcement of policies for information disclosure and trading of company’ shares by employees
• Dividend Payout Policy:• Minimum of 50% of net income, semi-annually
• Succession Plan
1st Brazilian company
Annual Client Leadership Award IFC 2008
Member of the Companies Circle – OCDE/IFC
Ranked in the 50 Largest Sustainable Latin American companies list (2008/2009)
Ranked in Ibovespa’s Transparency in Sustainability list (2nd place - 2009)
1st Place – May, 2011Energy Sector – The Most Sustainable Large Companies in Latin America for the 3rdconsecutive year
World-Class Corporate Governance Practices:
8
GENERATION
� Leader in renewable sources of energy in Latin America(> 4 GW through 2020)
� Operational excellence:
EBITDA margin > 70% for renewables and > 80% for conventional energy
� Successful track record in the development and construction of generation capacity
� Pursuing new opportunities (HPP and thermoelectric)
DISTRIBUTION
� Market leader, doubling market share;
� Operational excellencethrough use of innovation and best-in-class technologies
COMMERCIALIZATION
� Leader in energy sales, with a market share of over 10%
� Expansion of range of services and integration with the other business segments (more synergies)
Leadership in the Brazilian electricity sector, with a diversified portfolio
CPFL Energia strategic plan 2012-2016
88
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
9
Sales and Financials
Annex
10
Leadership in the distribution business:
� 8 distribution companies;� 13% of market share;� 7.0 million customers;� 569 municipalities;� Sales of 54,590 GWh1 | 6.0% CAGR from 2004 to 2011
5,5 5,6 5,7
6,3 6,4 6,6 6,77,0
2004 2005 2006 2007 2008 2009 2010 2011
+1.5 million
Acquisitions2006 | Cia. Luz e Força Santa Cruz | RGE’s additional stake (32.69%);2007 | CMS Energy Brasil2 (4 distribution companies).
R$ 1,029 million in acquisitions
Presence in the most developed regions of Brazil
1) Concession area 2) CPFL Jaguariúna
Southeast region
South region
Number of customers
Distribution business
1010
Positioned in a very promising region
Commercial: expected inauguration of shopping malls2012-20131
São Paulo
1) Source: A BRASCE 2) Source and projection: IBGE and LC A Consultores
AraçariguamaBauruBoituvaBotucatu CampinasJundiaí (2)Ribeirão PretoS.J. do Rio Preto (2)São RoqueSorocaba (2)Sumaré
FarroupilhaGravataí
14In the
concession area
25 malls(total)
2In the
concession area
6 malls(total)
Rio Grande do Sul
Residential:Population growth2
Accumulated variation
SP RGE RS
14,1%11,4%
5,5% 5,0%
Concessionarea of
CPFL Energia(Southeast)
SP RGE RS
9,5%7,7%
5,5% 4,6%
Concessionarea of
CPFL Energia(Southeast)
2000-2010
2010-2022(e)
Larger growth rates in the concession areas of CPFL Energia
11
12
99 98 97 96 93 85 82 82 81 76 75 72 69 67 67 64 64 59 57 56 51 5 50 49 49 47 45 45 43 42
RG
E
Pira
tinin
ga
Cos
ern
Coe
lba
CP
FL
Pau
lista
AE
S S
ul
CE
LPE
Coe
lce
Cem
ar
Ligh
t
ES
E
Ban
deira
nte
Ele
ktro
Esc
elsa
EP
B
Cem
at
Ene
rsul
Ele
trop
aulo
CE
B
Am
pla
Cel
tins
Cop
el
Cel
esc
Cel
g
CE
EE
CE
PIS
A
CE
MIG
Am
azon
as
Cel
pa
Cea
l
95 91 86 77 77 76 64 63 60 57 54 54 50 50 50 50 48 47 47 45 42 42 41 41 41 41 39
CP
FL
Sul
Jagu
ari
Moc
oca
San
ta C
ruz
Mux
feld
t
CP
FL
Lest
e
EB
O
Cai
ua
EM
G
San
ta M
aria
EV
P
Bra
gant
ina
Sul
gipe
Nac
iona
l
CF
LO
DE
ME
I
Coc
el
EN
F
Uhe
npal
Ele
troc
ar
CH
ES
P
Hid
ropa
n
DM
ED
Coo
pera
li…
EF
LUL
João
Ces
a
Ele
troa
cre
Igua
çu
Boa
Vis
ta
38
Companies with more than 400,000 customers | in %
Companies with less than 400,000 customers | in %
Efficiency Average
67
55
Source : ANEEL NT 294/2011 – Average of the methodology DEA and COLS without environmental components12
Operational Efficiency – Distribution companies
21
26.623.8
21.621.5
18.017.114.7
13.513.012.712.211.511.310.69.59.29.29.08.37.56.94.6 5.75.5
CPFL
Mococa
CPFL Santa
Cruz
CPFL
Paulista
CPFL
Piratininga
Coelce
CPFL Leste
Paulista
Escelsa
CPFL Sul
Paulista
CPFL
Jaguari
Elektro
Eletropaulo
Light
Copel
Bandeirante
Cosern
Cemig
Celesc
RGE
Celpe
AES Sul
Cem
ar
CEEE
Ampla
Coelba
DEC1 | 2010 (hours)
FEC1 | 2010 (#)
1) DEC -Duration of outages per consumer per y ear (in hours); FEC-Frequency of outages per consumer per y ear (number of outages). Excluding power outage effect in N
Operational Efficiency – Distribution companies
13
15.014.0
12.711.2
10.210.19.79.57.87.87.77.37.17.06.66.56.35.85.75.65.4
4.5 5.25.1
CPFL
Mococa
CPFL
Paulista
CPFL
Piratininga
Eletropaulo
Coelce
Elektro
Light
Escelsa
CPFL Santa
Cruz
Cem
ig
Cosern
Bandeirante
Celpe
CPFL Leste
Paulista
CPFL Sul
Paulista
CPFL
Jaguari
Copel
RGE
AES Sul
Celesc
Coelba
Ampla
Cem
ar
CEEE
Methodology of the 3rd tariff review cycle for distributors
1414
CPFL Energia - Recurring EBITDA Breakdown¹ - 2011 | R$ million | %
Commercialization278 | 7%
Generation1.189 | 31%
Consolidated3,769
Distribution2,350 | 62%
CPFL Paulista
CPFL Santa CruzCPFL Leste PaulistaCPFL JaguariCPFL Sul PaulistaCPFL Mococa
RGE
CPFL Piratininga
14% 18% 48% 62%
CPFL Piratininga
Oct/112
CPFL Santa CruzCPFL Leste PaulistaCPFL JaguariCPFL Sul PaulistaCPFL Mococa
Feb/12
CPFL Paulista
Apr/13
RGE
Jun/13
AffectedCPFL Energia’sEBITDA
Notes: 1) Excludes intercompany transactions and equity attributed to non-controlling shareholders; 2) Effectiv e enforcement: awaiting A NEEL’s decision
49.4%
22.3%22.0%
6.3%
Some Value Initiatives aimed at boosting efficiency and productivity
� Increase of operating productivity and efficiency� Growth at a lower incremental cost� Cost reduction per transaction via specialization,
e.g.: procurement 50%; payroll 35%; facilities
40%
CSCCorporate Services Center
IRPIncentivizedRetirement
Program
ZBBZero-Based
Budget
TauronSmart Grid
� Total of 445 adherences� Total costs: R$ 49.8 million (recorded in 2Q and 3Q of 2011)
� 43% reduction in the salary base of this population;
� Savings estimated at R$25 Mn per year
� Zero-Based Budgetmethodology implemented
� Inefficiencies from past budgets are not carried over to the next periods
� Improvements in the budgeting process and the organization’s cost culture;
� Avg. reduction of R$50 Mn per year in the next 5 years
� Implementation of smart grid concept: IT+Automation+Telecom
� Telemetering and self-healing
� Maximize return on electricity assets� Gains in productivity, efficiency and quality� Benefits estimated at R$106 Mn per year
Description Objectives
� Transference of transactional corporate activities to the CPFL CSC
� Corporate depts. focused on strategic, value-added levers vs. transactions
15
1) Bills ov erdue more than 30 day s – % of 12 months billings
Operational Efficiency – Distribution companies
16
jan/09
feb/09
mar/09
apr/09
may
/09
jun/09
jul/09
aug/09
sep/09
oct/09
nov/09
dec/09
jan/10
feb/10
mar/10
apr/10
may
/10
jun/10
jul/10
aug/10
sep/10
oct/10
nov/10
dec/10
jan/11
feb/11
mar/11
apr/11
may
/11
jun/11
jul/11
aug/11
sep/11
oct/11
nov/11
dec/11
1.424Q09
4Q10 4Q11
1.291.16
1.27
Delinquency (%)1 | CPFL Energia
2.4 million consumer units (CU) inspected
• 375 thousand CU identified and overhauled
• 591 thousand measuring equipment replaced
• 42 thousand regularization of illegal connections
Program for Reduction of Commercial Losses2007-2011
17
CPFL Energia Awards
Economical-Financial Management:
Management Quality:
Best Social Responsability:
Best Electic Energy DistributionCompany in Brazil:
Best Electic Energy DistributionCompany in the South Region:
Operational Management
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
18
Sales and Financials
Annex
Expansion in Generation (conventional + renewable)
19
7,15
2,95 2,66 2,23 1,71 1,37 1,25 1,21 1,20 1,00
Genco 1 CPFLEnergia
Genco 3 Genco 4 Genco 5 Genco 6 Genco 7 Genco 8 Genco 9 Genco 10
2nd largest private player in generation:
� 78 power plants in operation
� 2,768MW of installed capacity (2.947 MW in FY12e)
� 21 power plants under construction
854 915 1,0721,588 1,704 1,737
2,396 2,644 2,947 3,166 3,326
2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e
2012e Installed Capacity Ranking (GW) | Private players
Installed capacity evolution (MW) | CPFL Energia
Incorporation of CPFL Renováveis on August 24, 2011
Corporate structures considering the projects involved in the joint venture
+ wide portfolio for development
20
CPFL Renováveis | Current portfolio
100% 100%
63.0%1 37.0%
SPP
• 34 operating: 307 MW• 1 under construction: 20 MW• Under development: 603 MW
Total: 930 MW
Biomass
• 4 operating: 175 MW• 4 under construction: 195 MW• Under development: 1,190 MW
Total: 1,560 MW
Wind
• 8 operating: 368 MW• 25 under construction: 670 MW• Under development: 910 MW
Total: 1,949 MW
Total: 4,438 MW
21 1) F rom A ugust 1, 2011 until Nov ember 30, 2011 = 54.5%. F rom December 1, 2011 = 63.0%
CPFL Renováveis | Current portfolio
22 1) F rom A ugust 1, 2011 until Nov ember 30, 2011 = 54.5%. F rom December 1, 2011 = 63.0%
Installed capacity (MW)Assured energy (AvgMW)
Installed capacity(Total: 4,438 MW)
Biomass19%
SPP19%
Wind61%
2012
� 7 Wind Farms: Santa Clara� 2 Biomass TPPs: Ipê and Pedra
2013 2014
� 1 SPP: Salto Góes� 2 Biomass TPPs: Coopcanaand Alvorada
� 13 Wind Farms: Macacos I, Campo dos Ventos II and Atlântica
� 9 Wind Farms: Campo dos Ventos and São Benedito
Projects under construction – Start-up
Operating(Mar 2012)
Underconstruction
Operating(until 2014)
Underdevelopment
Total
849384
885388
1,734
772
100%with PPA
2,704
1,196
4,438
1,968
Wind: 1,038 MWBiomass: 370 MWSPP: 327 MW
283 MW 348 MW 254 MW
Biomass32%
SPP22%
Wind47%
CPFL Renováveis
Atlântica wind farm (under construction)Location: Palmares do Sul | RS
Taíba
Ester TPP | biomass (into commercial operation)Location: Cosmópolis | SP
• Acquisition: R$ 111.5 million2
• Installed Capacity: 40 MW• Physical guarantee: 11 avg. MW• PPA: 7 avg. MW (LFA 2007) | 15 years;4 avg. MW (ACL)
Bons Ventos wind farms(in commercial operation)
• Acquisition: R$ 1,062 million1
• 157.5 MW
• 63 avg. MW
• Commercial Start-up• Taíba: 4Q08• Bons Ventos, Canoa Quebrada e Enacel: 1Q10
• PPA:• Proinfa | R$ 290.50/MWh(Dec/11)
• 20 years
Location: Ceará
Expansion | Wind Farms and Biomass TPP Acquisitons
23
• 4 wind farms
• Installed Capacity: 120 MW• Physical guarantee : 52.7 avg. MW• PPA: LFA (Aug/10) | R$ 147.44/MWh (Dec/11) | 20 years
Expansion | Acquisition of Santa Luzia SPP on Aug/11
24
Santa Luzia SPPLocation: Chapecó River | Operational Sinergy
CPFL Renováveis SPP´s
• Commercial start-up: 3Q11
• Installed Capacity: 28.5 MW
• Assured Energy: 18 avg.MW
• PPA:• 14 avg.MW | 2007 LFAPrice: R$ 170/MWh (jun/11)Long Term contract: Dez/39
• 4 avg.MW | Free Market
ArvoredoAlto Irani
Plano AltoSalto Góes
Santa Luzia
25
412 MW | Certified projects
320 MW | Non-certified projects
Total | 732 MW
Acquisition of 100% of the Jantus SL (SIIF Énergies Brasil)
per R$ 823million (equity) and R$ 675 million (net debt)
1)
Generation | Portfolio of projects under construction
(e)C(MW)
(Avg. MW) (e)
2Q12 25 8.479% BNDES21% equity ACL
2Q12 70 24.4 73% BNDES27% equity
LER (Aug/10)R$ 154.121
3Q12 188 76.065% BNDES35% equity
LER (dez/09)R$ 168.321
95% concluded
60% concluded
Commercial start-up in 2012(e) | 283 MW / 109 avg. MW
Bio Pedra TPP
Santa Clara wind farm
83% concluded
Bio Ipê TPP
1) Constant currency (Dec/2011)26
1) Takes into account Atlântica wind farms (120MW/53avg. MW) 1) Macacos, Pedra Preta, Costa Branca and Juremas 2) Constant currency (Dec/2011)
(e) (MW) (MWmédios) (e)
1Q13 20 11.1 BNDES funding(63% debt / 37% equity)
LFA Aug/10R$ 160.412
2Q13 50 18.0BNDES funding(under review) ACL
2Q13 50 18.0 BNDES funding(under review)
ACL
3Q13 78.2 37.1 BNDES funding(under review)
LFA Aug/10R$ 137.32
3Q13 30 14.0 BNDES funding(under review)
LER Aug/10R$ 133.72
Commercial start-up in 2013(e) | 348 MW / 144 avg. MW1
54% concluded
8% concluded
8% concluded
Salto Góes SPP
Coopcana TPP
Alvorada TPP
10% concluded
7% concluded
27
Generation | Portfolio of projects under construction
1) Campo dos Ventos I, III, V, São Domingos and Ventos de São Martinho 2) Ventos de São Benedito, Ventos de São Dimas, Santa Mônica and Santa Úrsula
Commercial start-up in 2014(e) | 254 MW / 129 avg. MW
(e) (MW) (MWmédios) (e)
2Q14 138 68.5BNDES funding(under review)
Free Market2033
2Q14 116 60.6 BNDES funding(under review)
Free Market2034
Pending approval by ANEEL
Pending approval by ANEEL
28
Generation | Portfolio of projects under construction
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
29
Sales and Financials
Annex
Commercialization business
30 1) Exclude non-controlling shareholders30
192 219
455
587
456 446
485
514
Dec/2008 Dec/2009 Dec/2010 Dec/11
12.7%205.7%
Dec/2008 Dec/2009 Dec/2010 Dec/2011
Current: 9.1 GW averagePotential: + 2 GW average
Current: 1.1 GW averagePotential: + 6 GW average
# of competitive customers – >3 MW # of special customers – from 0.5 to 3 MW
Competitive advantages of CPFL in this market: market leadership, expertise and synergies with CPFL Renováveis
Number of free clients in Brazil
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
31
Sales and Financials
Annex
Sales – CPFL presents consistent growth
Sales in the Concession Area (GWh)1 Breakdown | 2011
CAGR = +6.0% p.a.
1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market). 2010 TUSD adjusted (97 CAT Resolution) 2) Source: EPE
TUSDCaptive Industrial
Commercial
ResidentialOthers
39,91739,25037,82137,32335,24531,77831,23533,076
14,67413,13810,97811,71011,2309,5857,2633,288
54,59052,37848,79949,03346,47541,36338,49836,364
2004 2005 2006 2007 2008 2009 2010 2011
1
45%
15%
14%25%
32
+4.9%
Annual Sales Growth in the Concession Area | 2011 (GWh)2
Financial results
33
EBITDA Margin
EBITDA (R$ million)IFRS
2009 2010 2011
3.4533.350
3.769
Net Income² (R$ million)IFRS
Net Revenues (R$ million)IFRS
2009 2010 2011
11,35812,024
12,794
27.9% 29.5%
2010 2011
+6.2%
1) Exclude non-controlling shareholders33
+12.5%
2009 2010 2011
1.689
1.560 1.582
+1.4%
2009 2010 2011
Dividends
34
2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11
140
401498
612722
842719
602 606 572655
774
486
748 758
3.7%
6.5%
9.1% 8.7% 9.6%10.9%
9.7%7.6% 7.3% 7.6% 7.9% 8.6%
6.9% 6.0%7.1%
8.29 9.43 11.6715.02 14.13 15.87 17.99 18.05 16.69 15.77 16.51 18.44 20.18 22.05 21.95
CPFL has distributed 95% of the net income since its IPOCumulative dividends since IPO (Sep/04): R$ 9,1 billion
Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3
1) Considering last two half years’ div idend yield 2) Refer to declared div idend. Payment in the next half year 3) Considers share price adjusted for reversal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per div idends).
Debt profile and Leverage
35
CDI
Prefixed (PSI)
IGP
TJLP
Gross debt breakdown1Gross debt real cost1 | LTM
Net debt2 | R$ billion
2009 2010 1Q11 2Q11 3Q11 4Q11
6.47.9 7.6 8.0 8.9
10.72,55x:Excluding debt of projects under construction and considering pro forma LTM Ebitda(e) of CPFL Renováveis
Net debt/EBITDA3
1.952.38 2.27 2.33 2.43
2.84
(R$ million)
9.4%7.9%
9.9%
7.3%7.1%4.9%4.4%4.3%4.4%3.9%4.3%
2004
2005
2006
2007
2008
2009
2010
1Q11
2Q11
3Q11
4Q11
1) Financial debt + pension fund; 2) Net debt calculation pursuant to financial covenants methodology . Excludes pension fund debt and judicial deposits related to income tax at CPFL Paulista. Doesn’t take into account regulatory assets and liabilities in EBITDA; 3) EBITDA LTM
2.700
1.4361.510
1.971
1.7791.857
1.468
3.338
Cash 2012 2013 2014 2015 2016 2017 2018+
Cash coverage: 1.9x short-term amortizations
Debt profile
3636 1) Disregard f inancial charges (ST = R$225 million; LT = R$24 million) and hedging (net positiv e effect of R$219 million)36
Amortization schedule (R$ million)
Average tenor: 4.3 years
Capex(e) 2012-2016
371) Constant currency (Dec/11). Take into account 100% interest in CPFL Renováveis and Ceran (IFRS) and proportional stake in the others generation plants. 2) Take into account private network incorporation and Tauron Project. 3) Take into account generation plants released until Mar 12, 2012
Total Capex(e) 2012-2016| R$ 8,310 million1
2011 actual(cash flow)
2012 2013 2014 2015 2016
1,9052,943
2,3701,115 946 935
Distribution2
R$ 4,983 million
Commercialization and Services
R$ 230 million
Generation (Convencional + Renewables3
R$ 3,097 million
2011 actual
2012
2013
2014
2015
2016 860
843
972
1,102
1,207
1,065
20
68
111
1,215
1,683
823
55
35
32
53
54
17
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
38
Sales and Financials
Annex
Capex 2004-2011
2004 2005 2006 2007 2008 2009 2010 2011
261 368 527 676 665 746 1.128
741 343 255 266
445 502 570
645
449 626
412929
Distribution Generation Acqusitions
Investments of
• R$ 5.1 billion in Distribution and
R$ 3.6 billion in Generation since IPO
604 623
1,419 1,5331,167
1,316
1,7732,119
Capex + Acquisitions1 | in R$ million
Acquisitions
• R$ 2.0 billion (equity)
1) Taking into account the acquisitions (equity) of 32.69% of RGE’s additional stake, 11% of Foz do Chapecó’s additional stake, Cia. Luz e Força Santa Cruz, CMSEnergy , SPP Santa Luzia (63%) and SIIF Énergies Brasil;39
Stock performance | CPFL Energia outperformed the main indices
40
2011 share performance on Bovespa1
1) Cotações de fechamento em 29/dez/2011 – com ajuste por proventos (CPFE3: R$ 26,02/CPL: US$22,15)
109
69
4631 27 23 22 20 15 14 13
2011 share performance on NYSE1
34.0%19.7%
-18.1%
CPFE3 IEE IBOV
MSCI Indexes
Daily average trading volume on Bovespa + NYSE in 2011Main electricity companies (R$ million)
Integrated(State-owned)
Genco(State-owned)
Genco(State-owned)
Disco Genco Integrated Integrated Genco Genco Genco
25.9%
5.5%
-20.6%
CPL Dow Jones Index
Dow Jones Br20
Private company with greater liquidity
41
TSR Performance
Total Shareholder Return1 2005 – 20112 | % p.a.
Note: 1) TSR = TIR shareholder – Market cap v alues on 12/31/2004 and 12/31/2011. Amounts adjusted by IGP-M (Dec/11)Source: Thomson F inancial; Economática;
Genco Genco Integrated Disco Integrated Integrated Integrated Genco
24%
21% 21%18% 18% 18%
14%
5%
2%
Methodology of the 3rd tariff review cycle for distributors
4242
•Maintenance
•WACC of
• Capital structure (D/E)
• Adjustment of leverage Beta:
of proposal of the 2nd phase, with improvements
• Single productivity of
•Deliquency and with a limit determined by ANEEL
central point of calculation
considers the companies differently; companies that perform better have a greater benefit and lower fee. The reverse is true for companies that have a poorer quality performance, when compared with the history of the company itself.
• For , the variation in the DEC and FEC quality indicators between
• XT limited to
(Nov, 11)
Comparison of global electricity consumption
43
Consumption of electricity versus GDP¹