Companhia Energetica De Minas Gerais Sa · BMFBOVESPA:CMIG3
Companhia Energetica De Minas Gerais Sa — Energy Co of Minas Gerais — Q2 2011 Earnings Presentation
23 slides from Companhia Energetica De Minas Gerais Sa's earnings presentation, Sep 12, 2011
Slide 1: Results – 2Q11
Results – 2Q11 Excellence in operational efficiency guarantees robust results
Slide 2: Disclaimer
Disclamer Some statements and estimates in this material may represent expectations about future events or results that involve risks and uncertainties known and unknown. There is no guarantee that the events or results referred to in these expectations will occur. These expectations are based on pr
Slide 3: 2Q11 results
2Q11 results Net revenue 3,431 11% 3,820 2Q2010 2Q2011 Ebitda 20% 1,057 1,267 2Q2010 2Q2011 Net income 29% 407 523 2Q2010 2Q2011 Cemig continues to deliver excellent results to shareholders Continual improvement in efficiency Operational indicators rapidly approaching optimum performance levels Port
Slide 4: Expansion of Taesa strengthens Cemig's position in the sector
Expansion of Taesa strengthens Cemig’s position in the sector Strategy of growth via Taesa has now become reality Stake in Abengoa will expand Taesa to 5,173km of lines and RAP of R$ 1.1 billion increase of more R$ 200 million from pro-forma Ebitda of 2010 In partnership with Abengoa, Taesa strength
Slide 5: Light: growing in power generation
Light: growing in power generation Light substantially increases its installed capacity with acquisition of stake in Renova 54.3% increase in Light’s generation capacity, to 1,319 MW, after 2014. 26.2% stake in total capital of Renova for R$ 360 million Acquisition in power generation improves profi
Slide 6: Sales strategy creates prominent position in the sector
Sales strategy creates prominent position in the sector Excellence in relationship is a differentiation factor for preserving market share Free Market is increasingly competitive, also has new participants entering Pricing of contracts continues to be a challenge Cemig continues to lead the Free Mar
Slide 7: Financial management
Financial management Portfolio of businesses and financial discipline position Cemig on a path of sustainable growth and addition of value for shareholders: Solidity of results Balance between the 3 main businesses (G, D, T) increases predictability, reduces risks Strong operational cash flow for pa
Slide 8: Debt profile
Debt profile Debt maturity timetable Average tenor: 3.5 years 1,846 3,584 2,749, 2,300 1,423 615 437 936 2011 2012 2013 2014 2015 2016 2017 2018-2034 Main Indexors 15% 3% 12% 6% 3% 1% 60% FINEL/RGR DOLAR CDI IPCA IGPM URTJ OUTROS OTHERS Average real cost of debt, % 5.8 5.4 5.3 5.7 6.5 6.8 6.8 7.1 7.
Slide 9: Sustainability: a permanent Cemig corporate value
Sustainability: a permanent Cemig corporate value Environmental programs The Premiar – Urban Trees program: Development of a system that brings together information about the electricity network associated with location and data on tree species. Total of 12,845 trees geo-referenced so far. Online tr
Slide 10: Consolidated sales volume
Consolidated sales volume 16,79 100 450 138 4 222 -813 67 16,936 1% 2Q10 Residential Industrial Commercial Rural Wholesale Spot (CCEE) other 2Q11 Record sales volume in the quarter reflects expansion in all consumption categories 6.4% increase in energy sold to final consumer reflects strong economi
Slide 11: Cemig GT – Sales Volume
Cemig GT – Sales Volume Consumer types, YoY change, GWh - 2Q2011 9,089 441 129 120 122 9,901 9% 2Q2010 Free clients Wholesale - Free Market Regulated market Regulated market 2Q2011 Volume by market, GWh 1,121 1,243 3,443 3,692 4,525 4,966 2Q2010 2Q2011 Free clients Free/regulated wholesale CCEE Expa
Slide 12: Cemig D sales volume by consumer type
Cemig D sales volume by consumer type Cemig D - Sales volume in 2Q11, GWh -6% 6,364 6,013 2Q2010 2Q2011 Sales by type, GWh TYPE 2Q2011 2Q2010 CHANGE Residential Industrial Commercial Rural Other Sub Total CCEE TOTAL 2,086 2,010 4% 1,187 1,160 2% 1,290 1,188 9% 608 605 1% 798 747 7% 5,969 5,710 5% 44
Slide 13: Consolidated net revenue
Consolidated net revenue Consolidated net revenue - change, 2Q10 to 2Q11, R$ million 3,431 272 18 74 7 47 22 122 -173 11% 3,820 2Q2010 Final Consumer TUSU Wholesale / CCEE Use of network Gas Other Construction revenue Deductions 2Q2011 Balanced portfolio of businesses sustain growth of 11% in net re
Slide 14: Consolidated operational expenses
Consolidated operational expenses Expenses in 2Q11 - R$ million 2,597 2,781 2Q2010 2Q2011 Consolidated expenses, 2Q11 - R$ million 0 24 2 155 27 29 5 19 121 -2 -17 -1 -118 -60 Personnel Profit shares Materials Pension plan Provisions Royalties Bought energy Outsourced services Gas Depreciation Payro
Slide 15: Balanced portfolio sustains Ebitda
Balanced portfolio sustains Ebitda Ebitda of principal companies EBDITA CEMIG GI CEMING D LIGHT GASMIG TBE TAESA Others CONSOLIDATED R$ million 2Q2011 576 399 62 25 62 73 71 1,268 % 45% 31% 5% 2% 5% 6% 6% 100% Net income by activity, 2Q11 35% 8% 2% 55% Geração Generation Distribuição Distribution Tr
Slide 16: Strong cash position sustains investments
Strong cash position sustains investments Cash flow, R$ mn 2Q2011 2Q2010 Cash at start of period Cash from operations Net income Depreciation and amortization Suppliers Provisions for operational losses Other adjustments Financing activities Financings obtained and capital increase Payments of loans
Slide 17: Investment program
Investment program ACTIVITY ACTUAL, TO JUNE 2011 PLANNED, 2011 PLANNED, 2012 “P1” projects 312 1,516 1,149 Generation 15 146 103 Transmission 5 68 91 Cemig D 292 1.301 953 Cemig Holding company — 1 2 Light for Everyone Program 239 374 — CDE — -142 -58 Minas Gerais State — -189 -16 Acquisitions 251 4
Slide 18: Cemig is a global investment option
Cemig is a global investment options TOTAL ASSETS 35.3 SHAREHOLDERS’ EQUITY 12.5 CONSOLIDATED NET REVENUE (LAST 12 MONTHS) 13.8 MARKET VALUATION (RS BILLION)* 18.8 NOW OPERATING ALMOST THROUGHOUT THE TERRITORY OF BRAZIL INVESTMENTS OUTSIDE BRAZIL *Market value = product of {Cemig’s total shares) and
Slide 19: Capital markets and Investor relations
Capital markets and Investor relations Stock performance Proposed of allocation of 2010 net income was approved on April 29th 53% of net income for 2010 will be distributed as dividends Dividends equivalent to R$ 1.75 per share. Dividend yield as of April 28th: Preferred: 6% Common: 7%
Slide 20: Investor Relations
Investor Relations ri@cemig.com.br Phone Number: (55-31) 3506-5024 Fax: (55-31) 3506-5025
Slide 21: 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, Markets and Generators occur, through freely negotiated bilateral
Slide 22: Glossary
Glossary Payout – Percent of net income to be distributed as dividends. P/L (Price to Earnings Ration) – Relationship between share price and profit per share. PL – Shareholders’ Equity PLD – Price for Liquidation of Differences, called “Spot” price. RTD Deferred Tariff Adjustment: ANEEL defined the
Slide 23: Long-term target is 20% market share in the various segments of the electricity market
Long-term target is 20% market share in the various segments of the electricity market Transmission Transmission under construction Cemig Free Client Purchase of electricity Gas distribution Distribution Generation Generation under construction Wind power generation Telecommunication See All Table o
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