Transmissora Alianca De Energia Eletrica S.a. · BMFBOVESPA:TAEE3
Transmissora Alianca De Energia Eletrica — Terna Participações — Q4 2006 Earnings Presentation
22 slides from Transmissora Alianca De Energia Eletrica's earnings presentation, Feb 15, 2007
Slide 1: 4Q06 and 2006 Conference Call Presentation
4Q06 and 2006 Conference Call Presentation February 15, 2007
Slide 2: Terna Participações Strategy
Terna Participações Strategy Venezuela Guianas Colombia V. Conde São Luís Fortaleza Tucuruí Imperatriz Natal Teresina João Pessoa Colinas Recife Maceió Miracema Aracajú Gurupi Sapeaçu Salvador Peru B.J. Lapa Serra da Mesa Cuiabá Samambaia Brasília Bolivia Goiânia Belo Horizonte Campo Grande Vitória
Slide 3: Highlights
Highlights Recent Replacement of US$ dollar debt with long-term local currency debt Events Sundry Conclusion of the acquisition of Munirah Transmissora de Energia Events Terna Participações concludes its IPO 99.99% of line availability for the 12-month period ended on December 31, Operating 2006 Per
Slide 4: Growth
Terna Participações Strategy Venezuela Guianas Colombia V. Conde São Luís Fortaleza Tucuruí Imperatriz Natal Teresina João Pessoa Colinas Recife Maceió Miracema Aracajú Gurupi Sapeaçu Salvador Peru B.J. Lapa Serra da Mesa Cuiabá Samambaia Brasília Bolivia Goiânia Belo Horizonte Campo Grande Vitória
Slide 5: Operating Efficiency with a Competitive Advantage
Operating Efficiency with a Competitive Advantage Focus on Critical Activities Minimizing Unavailability O&M 99.99% 99.90% Substation Line Operation Maintenance Maintenance In-house Outsourced Activities Activities 2006 2005 ♦ In-house technical support for complex and critical activities ♦ Outsourc
Slide 6: Growth
Terna Participações Strategy Venezuela Guianas Colombia V. Conde São Luís Fortaleza Tucuruí Imperatriz Natal Teresina João Pessoa Colinas Recife Maceió Miracema Aracajú Gurupi Sapeaçu Salvador Peru B.J. Lapa Serra da Mesa Cuiabá Samambaia Brasília Bolivia Goiânia Belo Horizonte Campo Grande Vitória
Slide 7: Revenue Trends
Revenue Trends Quarterly Gross Revenue (R$ million) Quarterly Net Revenue (R$ million) 0.4% 127.8 127.9 8.5% 127.3 117.8 4Q06 4Q05 4Q06 4Q05 Annual Gross Revenue (R$ million) Annual Net Revenue (R$ million) 515.7 4.2% 500.4 8.7% 494.7 460.2 2006 2005 2006 2005 6
Slide 8: Cost Trends
Cost Trends Quarterly Operating Costs and Expenses Quarterly Depreciation and Amortization (R$ million) (R$ million) 20.6 -4.3% -17.7% 17.8 16.9 0.5 1.6 0.4 0.6 17.1 11.5 10.9 1.3 3.8 3.7 3.2 4Q06 4Q05 Personnel Material Third party services G&A Others 4Q06 4Q05 Annual Operating Costs and Expenses A
Slide 9: EBITDA and Net Income
EBITDA and Net Income Quarterly EBITDA and Margin (R$ million) Quarterly Net Income (R$ million) 86.8% 110.9 82.5% 97.2 53.1 30.5 4Q06 4Q05 4Q06 4Q05 EBITDA EBITDA Margin Annual EBITDA and Margin (R$ million) Annual Net Income (R$ million) 87.2% 85.8% 436.4 394.6 195.9 145.8 2006 2005 2006 2005 EBIT
Slide 10: Capex
Capex ANNUAL CAPEX 25,495 6,221 Other expenditures 17,676 EPC and extraw orks 4,559 Information technology 3,583 1,930 Tools, vehicles and equipment 3,460 Requirements from third parties 12,655 Line improvement 7,872 2005 2006 2006 2005 CAPEX (R$ million) 4Q06 4Q05 Var. % Var. % Combined Combined Li
Slide 11: Indebtedness
Indebtedness Long-term debt, with attractive conditions Debt and Net Debt Trends (R$ million) Breakdown of Debt 1,600 CDI, 11.5% 1,400 1,293 1,306 521 Basket 1,200 Curr., 2.9 TJLP, 8.9% 1,000 79.6% (R$ million) 786 800 93% 91% Average Cost of Debt 600 Debt Average Cost 400 1.8 BNDES TJLP TJLP + 4.0%
Slide 12: Dividends
Dividends 2006 (R$'000) Net Profit 2006 127,034 Legal Reserve -6,352 Dividends 120,682 Interim Dividends -26,754 Interest on Equity 0 Dividends Balance 93,928 TOTAL DIVIDENDS + NET IoE 93,928 11
Slide 13: Share Performance
Share Performance TRNA11: Performance since IPO 25,0 24,0 24,5 24,4 24,1 24,0 23,7 23,7 23,0 24,2 23,2 23,1 21,0 1/nov 9/nov 17/nov 27/nov 4/dez 11/dez 18/dez 26/dez 2/fev 9/fev 25/out 4/jan 11/jan 18/jan 26/jan Price Mkt Cap Mkt Cap Price Mkt Cap Mkt Cap (R$/Unit) (R$ mln) mln) (US$ mln) mln) (R$/U
Slide 14: Growth
Terna Participações Strategy Venezuela Guianas Colombia V. Conde São Luís Fortaleza Tucuruí Imperatriz Natal Teresina João Pessoa Colinas Recife Maceió Miracema Aracajú Gurupi Sapeaçu Salvador Peru B.J. Lapa Serra da Mesa Cuiabá Samambaia Brasília Bolivia Goiânia Belo Horizonte Campo Grande Vitória
Slide 15: Corporate Governance
Corporate Governance 9 We are committed to the best managerial and Corporate Governance practices, our Company being listed on the Bovespa’s Level 2 of Corporate Governance. 9 Our preferred shares have 100% tag along rights in the case of a transfer of control. Our Corporate Governance practices are
Slide 16: Growth
Terna Participações Strategy Venezuela Guianas Colombia V. Conde São Luís Fortaleza Tucuruí Imperatriz Natal Teresina João Pessoa Colinas Recife Maceió Miracema Aracajú Gurupi Sapeaçu Salvador Peru B.J. Lapa Serra da Mesa Cuiabá Samambaia Brasília Bolivia Goiânia Belo Horizonte Campo Grande Vitória
Slide 17: Environmental Management System
Environmental Management System Commitment to improving the quality of life of Brazilian citizens and developing and managing social responsibiility projects. Environmental Management System (SGA) 9 Improving the effectiveness and efficiency of our services and environmental performance Social and C
Slide 18: Human Resources
Human Resources Young Qualified Motivated 9 Work safety 9 Staff training and due respect for employees’ worth 9 Constant improvements to the workplace 9 Participatory management Internal communications Assessment of performance and growth potential Review of job and wage plan Variable Compen
Slide 19: MyTransfo do Brasil 2007
MyTransfo do Brasil 2007 Mri do Brasil 2007 MEETING INTERCAMBIO DE EXPERIENCIA E CONHECIMENTO NA GESTAO DE TRANSFORMADORES E OLEO ISOLANTE 7,8 e 9 de marco de 2007 Centro de Convencées Bolsa do Rio Praca XV de Novembro, 20 Centro - Rio de Janeiro - RJ 18 Ssferna Participagées
Slide 20: Growth
Terna Participações Strategy Venezuela Guianas Colombia V. Conde São Luís Fortaleza Tucuruí Imperatriz Natal Teresina João Pessoa Colinas Recife Maceió Miracema Aracajú Gurupi Sapeaçu Salvador Peru B.J. Lapa Serra da Mesa Cuiabá Samambaia Brasília Bolivia Goiânia Belo Horizonte Campo Grande Vitória
Slide 21: Growth in Brazil
Growth in Brazil EXISTING LINES ♦ More than 20,000 km of lines auctioned between 1999 and 2006 ♦ Almost 88% are fragmented among private companies representing more than R$2.5 billion of APR (2006/2007) NEW AUCTIONS ♦ 3,294 km of new lines auctioned in 2006. ♦ More than 4,000 km expected to be aucti
Slide 22: Q&A
Q&A