Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Energy Co of Minas Gerais — Q2 2012 Earnings Presentation
32 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Aug 27, 2012
Slide 1: Earnings Release: 2Q 2012
Earnings Release: 2Q 2012 a. ’ Thinking for the future —- Acting for the world
Slide 2: Appreciation in Cemig's share prices and key operational figures
According to the Energy Research Company (EPE) of the Mining and Energy Ministry, Brazilian energy consumption has grown faster than the country’s overall growth rate — as the elasticities in this chart indicate. Current plans and outlook now indicate a more sustainable ratio of electricity consumpt
Slide 3: The electricity market of Cemig GT and Cemig D
Table of Contents — The electricity market of Cemig GT The consolidated total of electricity sold by Cemig GT means the total of: sales to Free Clients both in the state of Minas Gerais and outside it; sales under the Proinfa program to encourage new energy sources; and wholesale sales in the Regula
Slide 4: Ebitda and Light highlights 2Q 2012
The higher Ebitda in 2Q12 than in 2Q11 mainly reflects net revenue 16.01% higher, partially offset by operational expenses (excluding effects of depreciation and amortization) 16.80% higher. Ebitda margin was practically unchanged between the quarters: 32.93% in 2Q11, and 32.47% in 2Q12. Table of Co
Slide 5: Taesa results and profit and loss by activity
· Net income in 2Q12 was R$ 73.9 million, 1.6% higher than in 2Q11. · Taesa’s results for 1Q12 include the 1Q12 results of the assets of Abengoa that had been acquired (100% of NTE, and 50% of Unisa — ATE, ATE II, Table of Contents ATE II and STE). The assets related to Abengoa were acquired on Nove
Slide 6: 2Q12 Results: Efficient Management sustains Cemig as leader of the power sector
2Q12 Results Efficient Management sustains Cemig as leader of the power sector
Slide 7: Disclaimer
Disclamer Some statements or estimates in this material may represent expectations about future events or results, which are subject to risks and uncertainties both known and unknown. There is no guarantee that the events or results referred to in these expectations will in fact take place. These ex
Slide 8: 2Q2012 Results (R$ million)
2Q2012 Results (R$ million) Net revenue Ebitda Net Income 2Q2012 4,414 1,433 1,253 523 2Q2012 2Q2011 Sucessful strategy sustains growing results Cemig is showing strong expansion — while continuing to add value for shareholders Ebitda of R$ 1.4 billion: sustained by Cemig’s balanced portfolio of bus
Slide 9: Execution of the strategy takes Cemig to a new level
Execution of the strategy takes Cemig to a new level Long-term Strategic Plan calls for sustainable growth – to ensure addition of value for shareholders in the long term Leadership in the process of consolidation of Brazil’s power industry Balanced growth in the three segments – through acquisition
Slide 10: Cemig: a benchmark in the capital markets
Cemig: a benchmark in the capital markets Cemig: record market value R$ 31.8 billion on August 8th Strong value reflects operational performance, commitment to shareholders, and leadership in the Brazilian power industry Cemig is one of the most awarded in the Capital Market IR Magazine Awards 2012
Slide 11: Cemig is present in Brazil's major new generation projects
Cemig is present in Brazil’s major new generation projects Santo Antônio 5 generating units already operating — with total capacity of 348 MW 11 generating units will be operating by December 2012 — totaling 781 MW 44 generating units will be operating by December 2015 — totaling 3,124 MW Belo Monte
Slide 12: Clean power: largest in Wind Power and Small Hydro Plant
Clean power: Cemig’s group is the largest in Wind Power and Small Hydro Plant Start up of the Alto Sertão I wind power complex Project of Renova Energia Light owns 22.03% of Renova Energia S.A. Largest wind farm in Latin America —14 operating units, installed capacity of 294.4 MW Total investment R$
Slide 13: Historic moment as Taesa moves to a new level
Historic moment as Taesa moves to a new level Primary issue of 24 million new shares, with supplementary offering of a further 3 million, at R$ 65 Net proceeds of R$ 1.7 billion After the issue, Cemig’s holding in Taesa is 43% Settlement of transaction with Abengoa to acquire the remaining 50% of Un
Slide 14: Sales: leadership in power trading
Sales: leadership in power trading Power sales are strategic in adding value for shareholders Excellence in relationship with clients is Cemig’s big Free Market differential Profound expertise in power sales allows Cemig to create accretive contracts to our clients Cemig has 25% of the Free Market C
Slide 15: Gasmig: continuing to expand operations
Gasmig: continuing to expand operations New natural gas network facilities in place in Belo Horizonte Start of works on “South Ring” Project, serving the City’s Center-South zone 3.5-km expansion of the underground network in Pampulha region “Going Inland” Project takes natural gas to cities of Gove
Slide 16: Financial management
Financial management Rating agency reaffirms Cemig’s credit quality Even after its acquisitions, Cemig preserves a solid financial profile Cemig’s portfolio of businesses and financial discipline position it on a path of sustainable growth and addition of value for shareholders: Solidity of results
Slide 17: Debt profile
Debt profile Average Real Cost of the Debt(%) Main indecent FINEL/RGR DOLAR CDI IPCA IGPM URTJ OUTROS OTHERS Consolidated debt, 2Q12 CEMIG CONSOLIDATED CEMIG GT CEMIG D Total debt 16,043 8,556 3,661 Debt in foreign currency 341 2.1% 152 1.8% 66 1.8% Net debt (1) 12,851 6,414 3,335 Ebitda (2)/Interes
Slide 18: Sustainability: Our commitment
Sustainability: Our commitment Included in the DJSI World for the 12th year running The only LatAm electricity company continuously in the index since it began 7th year running in Bovespa’s IES (Corporate Sustainability) Index Launch of Cemig’s Anti-fraud Policy and “Ethical Conduct” (http://www.cem
Slide 19: 2Q12 — Results in Focus
2Q12 — Results in Focus
Slide 20: 2Q12 Results in Focus R$ million
2Q12 Results in Focus R$ million
Slide 21: Consolidated sales volume
Consolidated sales volume In spite of the challenging economic context, electricity sales volume was stable in 2Q12, due to expanding sales in the concession area, and relationship with clients Lower volume of settlements in the CCEE reflect lower volume of secondary electricity allocated in the qua
Slide 22: Cemig GT — Sales Volume
Cemig GT — Sales Volume Lower volume sold reflects lower volume of secondary electricity in the period Increase in CCEE spot price (PLD) more than offsets the fall in secondary electricity Startup of Santo Antônio Hydro plant and Paracambi Small Hydro Plant will contribute to expansion of sales volu
Slide 23: Cemig D – sales by consumer category
Cemig D – sales by consumer category In spite of challenging macro context, sales to final consumers were 2.4% up YoY in 2Q12 Adjusted for migration of free clients, industrial consumption was up of 3.6% in 2Q Sales volume, 2Q11 to 2Q12 - GWh Sales by consumer type – GWh CONSUMERS 2Q2012 2Q2011 CHAN
Slide 24: Consolidated net revenue
Consolidated net revenue Balanced portfolio of businesses achieved 16% growth in net revenue in 2Q12 Expansion in natural gas demand in Minas boosts Gasmig’s revenue by almost R$ 36 mn Gain on CCEE transactions reflects increase in the spot price (“PLD”) Cemig consolidated net revenue 2Q11 to 2Q12 -
Slide 25: Consolidated operational expenses
Consolidated operational expenses Operational efficiency program is getting results: Cemig D’s PMSO costs cut by 20% year-on-year in 2Q12 Higher profit-sharing expense reflects change of date of provisioning Increase in operational expenses in 2Q12 is mainly non-controllable cost items, which are pa
Slide 26: Balanced portfolio sustains Ebitda
Balanced portfolio sustains Ebitda EBITDA 2Q2012 % CEMIG GT 699 49 CEMIG D 372 26 LIGHT 67 5 GASMIG 17 1 TBE 75 5 TAESA 100 7 OTHERS 113 CONSOLIDATED 1,443 100% Ebitda of principal companies Net Income by activity, 2Q12 Generation Transmission Distribution / Other Distribution/Others
Slide 27: Strong cash position sustains investments
Strong cash position sustains investments Cash Flow Statements DESCRICÃO 2Q2012 2Q2011 Cash at start of period 2,235 2,733 Cash generated by operations 807 1,017 Net income Depreciation and amortization Suppliers Provisions for operational losses Other adjustments 605 245 194 73 -310 523 229 -52 97
Slide 28: Capex program
Capex program INVESTMENT JUNE 2012 ACTUAL 2012* 2013* Priority 1 Projects 622 2,278 1,178 Generation 7 85 225 Transmission 12 138 72 Distribution 602 2,052 881 Cemig (holding company) — 4 — Light for Everyone — II and III -6 27 — June 2012 R$ million * Planned values
Slide 29: Cemig: a global investment option
Cemig: a global investment option TOTAL ASSETS R$ 37.6 STOCKHOLDERS’ EQUITY R$ 12.9 CONSOLIDATED NET REVENUE (LTM) R$ 16.9 MARKET VALUE* R$ 31.8 OPERATIONS THROUGHOUT ALMOST ALL OF BRAZIL’S LAND AREA FIRST INVESTMENTS OUTSIDE BRAZIL IN OPERATION *Source for market value: Economàtica, stock price of
Slide 30: Investor Relations
Investor Relations ri@cemig.com.br Phone: (55-31) 3506-5024 Fax: (55-31) 3506-5025 A Melhor Energia do Brasil.
Slide 31: Glossary
Glossary ACR: Regulated Contracting Environment in which purchases and sales involving Distributors occur by means of public auctions. ACL: Free Contracting Environment, in which purchases and sales of electricity among Free Clients, Marketers and Generators occur, through freely negotiated bilatera
Slide 32: Glossary
Glossary Payout – Percent of net income to be distributed as dividends. P/L (Price to Earnings Ratio) – Relationship between share price and profit per share. P/L – Shareholders’ Equity PLD – Price for Liquidation of Differences, called “Spot” price. RTD- Deferred Tariff Adjustment: ANEEL defined th
Energy Co of Minas Gerais — Q2 2012 Earnings Presentation on 6ix