1Q10 ResultsMay, 2010
2
1Q10 Main highlights
FinancialFinancial Ebitda reached R$ 378 million, with margin of 82%
Decision favorable to the Company on legal dispute with Furnas created a positive impact of R$ 43 million in financial result
Net income of R$ 239 million, presenting an increase of 11% compared to 1Q09 (R$ 211 million without considering the non-recurring event abovementioned)
OperationalOperational Energy generation 55% higher than physical guarantee Raise of 8% on billed energy with AES Eletropaulo due to bilateral contract seasonality,
to be offset throughout this year
SubsequentEventSubsequentEvent
1st debenture issuance of the Company, amounting R$ 900 million and pre-payment of the only existing debt on May, 4th 2010
3
Reservoirs level and CAR1
Reservoirs Level - (%) Risk Aversion Curve – Southeast Submarket
• AES Tietê reservoirs levels closed the quarter with an average of 97% and the stored energy in the Southeast Submarket stayed well above the CAR¹ throughout 1Q10
72.6 80
.8 83.0
97.2
47.3
92.0
65.5
72.9
54.5
92.4
2009 1Q09 1Q10
85.3 98
.9
1 – Risk Aversion Curve Source: National Electric System Operator – ONS
Southeast South Northeast North
-
2009 2010 CAR
20
40
60
80
Jan Apr Jul Oct
-
2009 2010 CAR
20
40
60
80
% o
f M
axim
um S
tore
d En
ergy
4
Operational availability
• Maintaining high operational availability with a level of generated energy 55% higher than the physical guarantee
Energy Generation – MW Avg.1
Generation – MW Avg. Generation / Physical Guarantee
130%
1,467 1,4251,545 1,512
115%112%
121% 119%
1,665
2005 2006 2007 2008 2009
1,979
1Q10
155%
1- Generated energy divided by the amount of period hours
5
Billed energy
MRE2
AES Eletropaulo
Spot Market2
Billed Energy – GWh1
1Q101Q09
2,787 3,015
563
335
3,705
4,164
Billed energy was 12% higher due to seasonality of bilateral contract with AES Eletropaulo and greater volume of secondary energy in 1Q10
12 %
Other Bilateral Contracts
511
589
4919
1 - Including energy purchased 2 – Considers the difference between the sale and purchase volume
6
Investments
Investments – R$ million Investments 1Q10
New SHPPs
Investments
2008
59
39
20
2009
13
57
44
2010(e)
58
9
67
Investments of R$ 6 million in maintenance and modernization of power plants and R$ 1 million in environmental projects in 1Q10
1Q09 1Q10
8
1
71
75%
2%6%
18%
Equip. and Maint.
EnvironmentIT
New SHPPs
7
Concluded(PPA1)Concluded(PPA1)
Opportunities to increase installed capacity
UnderConstructionUnderConstruction
Under DevelopmentUnder Development
Projects to comply with the expansion obligation
6 MW of co-generation through biomass, contracted for 15 years (as of 2010)
7 MW of hydro generation through SHPPs2 in Jaguari Mirim River– São José SHPP (4 MW) has an estimated start-up in 2H10– São Joaquim SHPP (3 MW) has an estimated start-up in 2H10
500 MW of thermo generation through natural gas– Location has been defined in Nov/2009– Initiation of the environmental licensing process, with entry on CETESB in March/2010
22 MW of hydro generation through SHPPs, in stage of technical and economic feasibility studies
1 – Power Purchase Agreement 2 – Small Hydro Power Plant
8
Net Revenue
Increase of 8% in volume and 1.53% in the energy price sold to AES Eletropaulo contributed to raise of 10%in net revenue
Net Revenue – R$ million
1Q101Q09
417
46010%
9
1Q101Q09
48 48
3027
925
1698
Costs and expenses
Costs were impacted by biannual lock maintenance, increase in head counting and salary, and a complement on the provision regarding lawsuit with AES Sul
- 7%
16
1 - Personnel, Material, Third Party Services and Other Costs and Expenses
Energy Purchase, Transmission and Connection Charges, and Water Resources
Other Costs and Expenses1
Depreciation and Amortization
Operational Provisions
10
Ebitda change
Ebitda – R$ million
Ebitda Margin
11% raise in Ebitda, with 82% of margin
1Q101Q09
378
342
82% 82%
11%
11
Financial result
Financial Result – R$ million
Positive impact of R$ 43 million in financial result due to Company’s favorable decision in a lawsuit with Furnas and a negative impact of the IGP-M of R$ 39 million in the Company’s debt
1Q101Q09
1
3
- 66%
12
Net income
Company registered a net income of R$ 239 million in 1Q10 and will distribute 100% of the result
11 %
1Q101Q09
239
215
100 % 100 %
Pay-out
13
Cash flow generation
Consolidated Managerial Cash Flow – R$ million
Initial CashOperational Cash GenerationInvestmentsNet Financial ExpensesNet AmortizationIncome TaxFree Cash FlowDividends and Interest on EquityFinal Cash
1Q09
840297
(11)
(6)
(53)
(253)
(25)0
814
1Q10
615368
(8)
(12)
(60)
(328)
(41)0
574
4Q09
652297
(24)
(14)
(59)
(18)
(183)221
615
Growth of 24% in operating cash flow generation
14
Debt
Net Debt – R$ billion
Reduction of the debt cost from IGP-M + 10% p.a. to CDI + 1.20% p.a.
1Q102008 2009
0.40.4
0.3x0.3x
Net Debt / EbitdaNet Debt
1Q09
0.40.3
0.3x0.3x
Overlook on the 1st debenture issuance
R$ 900 million 5 years term CDI + 1.20% a.a. Payment on semiannual basis Fixed amortization on the 3rd, 4th, and 5th years Objective: pre-payment of Eletrobras debt
15
Capital market
1 – Index: 03/31/09= 100 2 - Index: 12/31/09 =100
AES Tietê X Ibovespa X IEE Daily Avg. Volume - R$ thousand
Preferred Common
2008 2009
2,1012,692
10,187
8,160
5,468
8,086
IBOV
IEE
GETI4
Last 12 Months
+ 72%
+ 45%
+ 10%
7090
110130150170190
Mar-092 Jun-09 Sep-09 Dec-09 Mar-10
37% growth in daily average volume traded in 1Q10
3,952
13,708
9,756
1Q10
Dec-093 Jan-10 Feb -10 Mar-10
1Q10110
100
90
+ 3%
0%
- 3%
1Q10 ResultsThe statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance.
Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes.
.
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