Embed Size (px)
Citation preview
1
Presentation of Results 2014
São Paulo, February 27, 2015
2
Disclaimer
The statements in this report with respect to the outlook for the
Company’s businesses, the projections and results and potential
for growth constitute mere forecasts and were based on
management’s expectations in relation to the future of the
Company. These expectations are highly contingent on changes in
the market, on the general economic performance of the country,
the sector and the international markets, being subject to change.
3
Agenda
Financial Results 2014
Capital Markets Performance
4
Highlights - 2014
Filing of the RBSE Evaluation Report
Net Operating Revenue: increase of 12.4%
Decline of 3.2% in O&M costs
Increase in the Equity Income Result
EBITDA of R$ 488.0 millions with 44.3% of Margin
Net Income of R$ 379.7 million against R$ 31.9 million in 2013
Distribution of Earnings to Shareholders of R$ 425.0 millions referring
to 2013 and 2014 financial years
Increase in Capital Stock of R$ 215,3 million, with 93% of shares
subscribed
5
Breakdown of Gross Operating Revenue
Growth of 10.4%
Decline of 1.1%, reflecting:
i. Execution of Improvements;
ii. Startup of lot K operations - Auction
004/2011 - at the IEPinheiros subsidiary;
and
iii. Conclusion of upgrading work at the Evrecy
subsidiary.
Increase of 26.3% due to:
i. Monetary restatement of the RAP R$ 53.9
MM;
ii. Entry of RBNI (Basic Network of New
Facilities) and Improvements of R$ 18.3 MM
(R$ 6.9 MM in 2013);
iii. Surplus from the system of R$ 42 MM
against R$ 13.9 MM in 2013;
iv. PV and Regulatory Charges (CDE/Proinfa)
in the amount of R$ 11.0 MM.
Reduction of 14.5%, reflecting revision of financial flows
due to changes in the tax regime for calculating PIS/Cofins
(Real x Presumed Profits) at the IEPinheiros subsidiary
(R$ millions)
6
Operating Deductions and Revenue
Growth of 12.4% in Net Operating Revenue
Principal variations in Operating
Deductions:
▲ Change in deferred PIS and Cofins rate
at the IEPinheiros subsidiary; and
▲ Reduction of 17.8% in regulatory
charges (CDE and Proinfa).
(R$ millions)
7
Breakdown of Costs and Expenses
Efficiency in the management of costs and expenses
Increase of 3.3% (below inflation), above all due
to more effective use of overtime and standby
time;
Decline of 26.1% due to:
i. Start of Lot K operations at IEPinheiros;
ii. Conclusion of upgrading work at Evrecy;
and
iii. Rescheduling of O&M activities;
Increase of 3.4% (below inflation) due to the re-
dimensioning/revision of services agreements
such as the rental of the vehicle fleet and
conservation of TL rights of way; and
Increase of 6%, principally due to variations in
taxes, offset by the reduction of contingency
expenses.
(R$ millions)
722.8
8.7
-38.8
7.3
6.0
706.0
2013
Personnel
Material
Services
Others
2014
Company Subsidiaries
-2.3%
8
Equity Income
Increase of 42.3% in 2014
(R$ millions)
Consolidation in the period of IEMadeira’s
Transmission Line and Substations brought
into operation in August 2013 and May 2014,
respectively. Partially offset by lower net
income in 2014 due to the increase in
financial expenses in the fiscal year.
IENNE reverting a loss of R$ 10.4 MM in
2013 due to the tariff revision, to a profit of
R$ 3.9 MM in 2014; mainly for result of tariff
review of 2013 that reduced the RAP 8.9%.
Improved results from IEGaranhuns, (+R$
14.9 MM) due to variation in financial
revenue;
9
Financial ResultLower financial revenue from RBNI (Basic Network of New
Facilities)
Reduction of 39.4% due to lower volume
of invested funds during the period
(average balance of R$ 566.0 MM in
2014 against R$ 1,183.1 MM in 2013);
Decline of 26.8% in monetary
restatement of RBNI – Law 12.783;
Settlement of CCB Internacional and
Commercial Paper in 2013;
Increase of 15.2% due to a reduction in
interest and charges on loans and
financing due to the settlement of the
relative agreements;
Principally due to the settlement of CCB
Internacional and Commercial Paper in
2013;
(R$ millions)
10
Breakdown of Net Income
Earnings per share was R$ 2.3454
(R$ millions)
Profit 2013 ex Provision SEFAZ SP reflects the adjustment of R$ 340.7
MM, Equivalent Provision of R$ 516 MM discounted Income Tax and
Social Contribution (34%).
11
EBITDA - ICVM 527
Growth of R$ 657.8 MM
Increase of R$ 346.3 MM (1,085%), mainly
for the improvement of operational status
(hight revenue and less cost) and due to the
recognition of the provision for receivables
from SeFaz-SP in 2013 for a net R$ 340.7
MM;
Increase of R$ 249.7 MM, above all due to
the lower payout of earnings as interest on
equity capital and also due to deferred IT/SC
relating to the provision for receivables due
from SeFaz-SP in 2013 for R$ 175.6 MM;
Increase of R$ 60.3 MM due to reduced
income on financial investments, the average
balance of which fell from R$ 1,183.1 MM in
2013 to R$ 566.0 MM in 2014 and the
decline in revenue from monetary
restatement of RBNI accounts receivable.
(R$ millions)
12
Net Debt
Principal events:
▼ Payout to shareholders of R$ 425 MM;
▼ Payment of debt service of R$ 217.1 MM, principally with BNDES;
▲ Drawdown of R$ 240.0 MM in 2014 of new funding from BNDES;
▲ Settlement of 1st Series debentures in December 2014 for R$ 173.8 MM; and
▲ Delay in the three final installments due 2013 of accounts receivable under Law 12.783
(RBNI) for R$ 154.6 MM.
(*) Since January 2013, the Company has channeled its financial investments into exclusive
investment funds. This investment is in the form of high liquid investment fund units, readily convertible
into cash irrespective of the maturity of the assets.
13
Debt Amortization
(R$ millions)
Cash and Financial Investments on 12/31/14: R$ 484.3 million
Cash from accounts receivable (RBNI): 498.8 million*
*Do not consider financial restatements due to payments delays.
14
Aggregate Debt at the Subsidiaries
1.245,1
101,257,9 18,9
Madeira Garanhuns IENNE IESUL
CTEEP’s participation
2013 2014
Total: R$ 1,423.1 MM Total: R$ 1,500.7 MM
(R$ millions)
15
Investments
16
Agenda
Financial Results 2014
Capital Markets Performance
17
Capital Markets Performance
TRPL4 reported a closing price of R$ 41.50 in 2014
Principal events:
▲ Increase of 31% in CTEEP’s market cap, closing 2014 at R$ 6,692 MM;
▲ Increase of 15% in the number of trades with TRPL4 on the BM&FBovespa;
▲ Growth of 12% in the quantity of traded securities (TRPL4);
▲ 93% of share offering subscribed to the increase in capital stock; and
▲ Again included in BM&Fbovespa’s IBrX-100 portfolio (in 2015) in the light of TRPL4’s
performance in 2014.
