Axia Energia Sa · BMFBOVESPA:AXIA3

Axia Energia Sa — Brazilian Electric Power — Shareholder Meeting (November 2012)

44 slides from Axia Energia Sa's shareholder meeting presentation, Nov 16, 2012

  1. Slide 1: Form 6-K Report of Foreign Private Issuer

    SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of November, 2012 Commission File Number 1-34129 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS (Exact name of

  2. Slide 2: Eletrobras Administration Proposal

    > Eletrobras Administration Proposal ' anos

  3. Slide 3: Table of Contents

    TABLE OF CONTENTS Invitation Notice of Meeting Subjects to be deliberated in the EGM 1. Election of a member of the Board of Directors representing minority shareholders, individuals and legal entities of private law, pursuant to item III, article 17, of the bylaws of the company subject to the indi

  4. Slide 4: Invitation

    INVITATION Date: December, 3rd 2012 Time: 9:00 a.m. Venue: Company’s Headquarters, Setor Comercial Norte [Northern Business Sector], Quadra 04, Bloco “B”, No. 100, Room 203 of Edifício Centro Empresarial VARIG – Brasília – DF Subjects: Extraordinary General Meeting 1. Election of a member of the Boa

  5. Slide 5: Notice of Meeting

    Notice of Meeting MINISTRY OF MINES AND ENERGY CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRAS (Publicly-held company) Brazilian Registry of Legal Entities (CNPJ/MF) No. 00001180/0001-26 NOTICE OF MEETING 160th Extraordinary General Meeting The shareholders of Centrais Elétricas Brasileiras S.A - E

  6. Slide 6: Information to Shareholders

    EXTRAORDINARY GENERAL MEETING INFORMATION TO SHAREHOLDERS Dear Shareholders, The following explanations are given by Company Management on the subjects object of deliberation at EGM: 1. Election of one member of the Board of Directors representing minority shareholders, individuals and legal entitie

  7. Slide 7: Eletrobras and subsidiaries technical notes and concession amendments

    Given the above, in relation to the items on the agenda of the Extraordinary General Meeting: 1. Election of one member of the Board of Directors representing minority shareholders, individuals and legal entities of private law, according to item III, article 17, of the bylaws of the company; 2. Ext

  8. Slide 8: Technical Note

    Technical Note Subject: Extension of Concession Agreements of the Eletrobras System affected by Provisional Measure 579 Prepared by: DEE – Executive Board of Eletrobras 7

  9. Slide 9: Summary

    SUMARY I - INTRODUCTION 3 II - INDEMNITY VALUE 7 III – NEW REVENUE VALUE 8 IV – ANALYSIS OF OPTIONS 9 V – AMENDMENT TO THE CONCESSION AGRREMENT 11 VI –PLAN FOR THE IMPLEMENTATION OF INDEMNITY 12 VII - CONCLUSION 13 8

  10. Slide 10: I Introduction

    I INTRODUCTION Provisional Measure 579, of September 11, 2012 (MP579/2012), regulates generation, transmission and distribution of electricity concessions, the reduction of sector charges, lower tariffs, and other measures. Decree No. 7,805 of September 14, 2012, regulates MP579/2012, which regulate

  11. Slide 11: Ministry technical notes on indemnity and tariffs

    7.805/2012. Releases by concessionaire and the concession contract by the new deadline of the end of the concession, and - Order of the Minister: Deferred Application for Extension of term of hydroelectric concessions MP 579/2012 and Decree 7.805/2012. Releases by the concessionaire, concession cont

  12. Slide 12: Installed Capacity and Transmission Lines

    Table 1 - Installed Capacity - As at 31/12/2011 (MW) Companies HEU+SHE TEU UTN (Wind+Sun) Total % Full 26.419 4.524 1.990 0 32.933 28,1 Participation CGTEE 840 840 Chesf 10.268 347 10.615 Eletronorte 8.695 480 9,175 Eletronuclear 1.990 1.990 Furnas 7.175 962 8.137 Amazonas Energia 278 1.895 2.173 Di

  13. Slide 13: II - Value of Indemnity

    Table 3 below summarizes the generation assets (hydropower plants in MW) and transmission (transmission in Km) affected by MP579/2012 and unaffected by the companies listed. Table 3 - Assets of G and T affected and unaffected by MP579 maturing in 2015 and 2017 Generation – MW Transmission – KM Compa

  14. Slide 14: 12

    12

  15. Slide 15: III - New Revenue

    i) Generation: increased R&D1; TFSEE2; CFURH3 and TUST4, and PIS/PASEP/COFINS (Gross). ii) Transmission: Adjusted by IPCA untily jan/2013 plus PIS/PASEP/COFINS. Table 5 – New Revenue R$/milhões Affected Companies Actual MP579 Diference Reduction Asset Generation 5.015,0 1.077,9 -3.937,1 -78,5% Chesf

  16. Slide 16: IV - Analysis of Options

    IV –ANALYSIS OF OPTIONS Two options regarding the impacts of the MP579 were analyzed: 1 - To extend the Concession Agreements. 2 – Not to extend the Concession Agreements. Basic assumptions of the financial projections The preparation of financial projections considered as basic premises: a) In both

  17. Slide 17: Analysis of Options NPV and Amendment to Concession Agreement

    Table 6 below summarizes the results of the calculation of the Net Present Value - NPV considering options for extension and no extension of the concessions. Table 6 - Analysis of Options - NPV - R$/million NPV NPV no Companies Affected Asset Extension Extension (a) – (b) (a) (b) Chesf Geração 8.834

  18. Slide 18: VII - Conclusions

    VII - CONCLUSIONS The sectoral legislation since the Water Code, Decree 24643 of July 1934, states that the reversion of concessions to the Union, after expiration of concessions. Still according to the legislation previous to MP579, when the concession ends, it should be bid again. MP579 has opened

  19. Slide 19: Ordinance No 578, October 31, 2012

    ORDINANCE No 578, DATED OCTOBER, 31st 2012. THE DEPUTY MINISTER OF STATE FOR MINES AND ENERGY, in the use of the powers attributed in the art. 87, sole paragraph, items II and IV, of the Federal Constitution, in view of the provisions of Provisional Measure 579 dated September 11, 2012, and Decree N

  20. Slide 20: Annex to MME Ordinance 578

    Annex to MME Ordinance 578, October 31, 2012 -p. 1 ANNEX Tariffs of Electric Energy Generation Concessions 18

  21. Slide 21: Hydroelectric Plant Tariffs

    Contract Concessionaire Hydroelectric Plant Power for the purpose Tariff (R$/kW year) of definition of the Management of Generation Assets (MW) 006/2004-ANEEL COMPANHIA Paulo Afonso Complex 4.279,60 29,91667 HIDRO ELÉTRICA (Apolônio DO SÃO Sales/Moxotó, Paulo FRANCISCO Afonso I, Paulo Afonso II, Pau

  22. Slide 22: Hydroelectric Plant Tariffs (continued)

    ELÉTRICAS S.A. 004/2004-ANEEL FURNAS Porto Colômbia 319,20 60,93612 CENTRAIS ELÉTRICAS S.A. 45/1999-ANEEL COPEL GERAÇÃO Gov. Pedro Viriato 260,00 57,10940 E TRANSMISSÃO Parigot de Souza S.A. (Capivari/Cachoeira) 006/2004-ANEEL COMPANHIA Boa Esperança 237,30 66,73710 HIDRO ELÉTRICA DO SÃO FRANCISCO 0

  23. Slide 23: Hydroelectric Plant Tariffs (continued)

    ENERGIA S.A. - EMAE 55/1999-ANEEL Celesc Geração S.A. Palmeiras 24,60 120,87788 002/2004-ANEEL EMPRESA Rasgão 22,00 118,52527 METROPOLITANA DE ÁGUAS E ENERGIA S.A. - EMAE 006/2004-ANEEL COMPANHIA Pedra 20,01 82,64841 HIDRO ELÉTRICA DO SÃO FRANCISCO 10/1999-ANEEL COMPANHIA Rio do Peixe 18,06 103,2908

  24. Slide 24: Hydroelectric Plant Tariffs (continued)

    007/1997-DNAEE CEMIG GERAÇÃO Cajurú 7,20 152,18112 E TRANSMISSÃO S.A. - CEMIG GT 39/1999-ANEEL ZONA DA MATA Ervália 6,97 147,65355 GERAÇÃO S.A. 39/1999-ANEEL ZONA DA MATA Neblina 6,47 180,94701 GERAÇÃO S.A. 55/1999-ANEEL CELESC GERAÇÃO Salto (Salto 6,28 192,48094 S.A. Weissbach) 39/1999-ANEEL ZONA D

  25. Slide 25: Hydroelectric Plant Tariffs (continued)

    007/1997-DNAEE CEMIG GERAÇÃO Sumidouro 2,12 139,73608 E TRANSMISSÃO S.A. - CEMIG GT 007/1997-DNAEE CEMIG GERAÇÃO Anil 2,08 216,85424 E TRANSMISSÃO S.A. - CEMIG GT 45/1999-ANEEL COPEL GERAÇÃO Chopim I 1,98 249,13342 E TRANSMISSÃO S.A. 25/2000-ANEEL COMPANHIA Guarita 1,76 231,58120 ESTADUAL DE GERAÇÃO

  26. Slide 26: Hydroelectric Plant Tariffs (continued)

    25/2000-ANEEL COMPANHIA Ijuizinho 1,00 290,29263 ESTADUAL DE GERAÇÃO E TRANSMISSÃO DE ENERGIA ELÉTRICA - CEEE- GT 19

  27. Slide 27: Ordinance No 579, October 31, 2012

    ORDINANCE No 579, DATED OCTOBER, 31st 2012. THE DEPUTY MINISTER OF STATE FOR MINES AND ENERGY, in the use of the powers granted by art. 87, sole paragraph, items II and IV, of the Federal Constitution, in view of the provisions of the provisional measures 579 of September 11, 2012, and in Decree No.

  28. Slide 28: Annual Allowed Revenues of Transmission

    Annex to MME Ordinance 579, October 31, 2012 - p.1 ANNEX Annual Allowed Revenues of Public Service Electric Energy Transmission Contract Concessionaire AAR (R$/year) 063/2001-ANEEL Celg Geração e Transmissão S.A. - CELG-GT 16.468.803,68 006/1997-DNAEE Cemig Geração e Transmissão S.A. - CEMIG GT 148.

  29. Slide 29: Interministerial Ordinance 580/MME/MF

    INTERMINISTERIAL ORDINANCE 580/MME/MF, NOVEMBER 1st 2012 THE DEPUTY MINISTER OF STATE FOR MINES AND ENERGY AND THE MINISTER OF STATE OF FINANCE, in the use of the powers given them by art. 87, sole paragraph, items II and IV, of the Federal Constitution, in view of the provisions of the provisional

  30. Slide 30: Compensation payment alternatives

    Sole Paragraph. In case of extinction of the IPCA, another official index will be adopted which will replace it and, in the absence of such, another index with similar function, as determined by the concession grantor will be used. (P. 2 of Interministerial Ordinance no 580/MME/MF, of November 1st,

  31. Slide 31: Annex I Compensation for Generation Concessions

    ANNEX I Compensation amount for Electric Energy Generation Concessions Operation and National Hydroelectric Comercial start Power Compensation date Contract Concessionaire Registry of Plant (MW) (R$) Legal Entities Companhia 003/2004- de São 60.933.603/0001- Energética Ilha Solteira 3.444,00 21.886.

  32. Slide 32: Annex I Compensation (continued)

    048/1999-DISTRIBUIÇÃO Antas I (Pedro ANEEL DME 23.664.303/0001- Affonso 8,78 27.187.360,00 1911 S.A. - DMED 04 Junqueira) Zona da Mata 039/1999- 04.677.733/0001- Geração S.A Ervália 6,97 26.407.480,00 1999 ANEEL 16 Zona da Mata Coronel 039/1999- 04.677.733/0001- Domiciano Geração S.A 5,04 20.421.790

  33. Slide 33: Annex II Compensation for Transmission

    ANNEX II Compensation Amount for Transmission National Registry of Legal Compensation Contract Concessionaire Entity (R$) Companhia Estadual de Geração e Transmissão de 055/2001-ANEEL 92.715.812/0001-31 661.085.854,71 Energia Elétrica - CEEE- GT Celg Geração e 063/2001-ANEEL Transmissão S.A. - CELG-

  34. Slide 34: Order of the Minister: Concession Extensions

    Order of the Minister: Grant of request for extension of the term of the concessions of Hydroelectric plants Provisional Measure 579/2012 and 7,805/2012 Decree 1 Deadline Contract Concessionaire Plant Concession Coronel Domiciano 12/31/2042 Zona da Mata Ervália 12/31/2042 039/1999-ANEEL Geração S.A

  35. Slide 35: Contract 02/2012-ANEEL Coaracy Nunes

    02/2012-ANEEL Eletronorte Coaracy Nunes 12/31/2042 26

  36. Slide 36: Contract 025/2000-ANEEL Bugres

    5 Deadline Contract Concessionaire Plant Concession 025/2000-ANEEL CEEE-GT Bugres 12/31/2042 Canastra 12/31/2042 Capigui 12/31/2042 Ernestina 12/31/2042 Forquilha 12/31/2042 Guarita 12/31/2042 Herval 12/31/2042 Ijuizinho 12/31/2042 Jacuí 12/31/2042 Passo do Inferno 12/31/2042 Passo Real 12/31/2042 S

  37. Slide 37: Concession deadlines Contract 043/1999-ANEEL

    7 Deadline Concession Contract Concessionaire Plant Cachoeira do 03/17/2041 043/1999-ANEEL CHESP Lavrinha (São Patrício) 8 Deadline Concession Contract Concessionaire Plant 107/2000-ANEEL DEMEI Passo do Ajuricaba 12/31/2042 9 Deadline Concession Contract Concessionaire Plant 94,436 Decree, dated Par

  38. Slide 38: Concession deadlines Contract 03/2004-ANEEL

    11 Deadline Concession Contract Concessionaire Plant Ilha Solteira 11/18/2041 Jupiá (Engenheiro 12/31/2042 03/2004-ANEEL CESP Souza Dias) Três Irmãos 11/18/2041 12 Deadline Concession Contract Concessionaire Plant Pedro Affonso Junqueira 12/31/2042 048/1999-ANEEL DMED (Antas I) 13 Deadline Concessio

  39. Slide 39: Concession deadlines Contract 09/1999-ANEEL

    Deadline Concession Contract Concessionaire Plant Companhia Jaguari Macaco Branco 12/31/2042 09/1999-ANEEL de Energia - CJE 29

  40. Slide 40: Concession deadlines Contract 011/1999-ANEEL

    15 Deadline Concession Contract Concessionaire Plant Paranapanema 12/31/2042 Santa Cruz Geração 011/1999-ANEEL de Energia S.A. Rio Novo 12/31/2042 30

  41. Slide 41: Concession deadlines Contract 07/1999-ANEEL

    16 Deadline Concession Contract Concessionaire Plant Quatiara 12/31/2042 07/1999-ANEEL Quatiara Energia S.A. 17 Deadline Concession Contract Concessionaire Plant Apolônio Sales 12/31/2042 (Moxotó) Araras 12/31/2042 Boa Esperança 12/31/2042 Funil 12/31/2042 Luiz Gonzaga 12/31/2042 06/2004-ANEEL CHESF

  42. Slide 42: Concession deadlines Contract 07/1997-DNAEE

    18 Deadline Concession Contract Concessionaire Plant Anil 12/31/2042 Cajurú 12/31/2042 Camargos 12/31/2042 Gafanhoto 12/31/2042 Itutinga 12/31/2042 Joasal 12/31/2042 Marmelos 12/31/2042 Martins 12/31/2042 07/1997-DNAEE CEMIG Paciência 12/31/2042 Peti 12/31/2042 Piau 12/31/2042 Poquim 12/31/2042 Salt

  43. Slide 43: Concession deadlines Contract 010/1999-ANEEL

    19 Deadline Concession Contract Concessionaire Plant Companhia Leste 010/1999-ANEEL Rio do peixe 12/31/2042 Paulista de Energia 20 Deadline Concession Contract Concessionaire Plant 08/1999-ANEEL Quatiara Energia S.A. Pari 12/31/2042 21 Deadline Concession Contract Concessionaire Plant 03/2006-ANEEL

  44. Slide 44: Signature and Forward-Looking Statements

    SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: November 16, 2012 CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS By: /S/ Armando Casado de Arauj

Brazilian Electric Power — Shareholder Meeting (November 2012) on 6ix