CPFL Energia S A : Apresentação 3T20_webcast_EN_vf
11/13/2020 | 08:55am EST
3Q20 Results
Disclaimer
This presentation may contain statements that represent expectations about future events or results according to Brazilian and international securities regulators. These statements are based on certain assumptions and analyses made by the Company pursuant to its experience and the economic environment, market conditions and expected future events, many of which are beyond the Company's control. Important factors that could lead to significant differences between actual results and expectations about future events or results include the Company's business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial market conditions, uncertainty regarding the results of future operations, plans, objectives, expectations and intentions, among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied in forward-looking statements about future events or results.
The information and opinions contained herein should not be construed as a recommendation to potential investors and no investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may result from the use or contents of this presentation.
This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and projections about future events and trends that may affect the Company's business.
These statements may include projections of economic growth, demand, energy supply, as well as information about its competitive position, the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the estimates and assumptions on which these statements are based.
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Initial Guidelines
Simultaneous Translation into English:
Q&A Session
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For the English version of the presentation, please access: www.cpfl.com.br/ri
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Increase of 1.6% in load in the concession area
EBITDA of R$ 1,954 million, increase of 20.8% Net Income of R$ 1,352 million, increase of 80.8%
Net Debt of R$ 13.3 billion and leverage of 1.93x Net
CPFL Piratininga tariff adjustment, inOct-20: +9.82% for
the consumers and +17.02% in Parcel B
Release of funds of COVID Account in 3Q20, in the amount of
R$ 1,280 million
CPFL Renováveis' integration plan through the Corporate Restructuring of the CPFL Group companies: concluded on Sep 30th
Release of our 2020-2024 Strategic Plan of Sustainability in Oct/20
CPFL in Hospitals Program: (i) energy
efficiency: R$ 50.5 million invested up to Sep-20; and (ii) 48 hospitals with concluded actions
3Q20 Energy Sales
Load1 in the concession area | GWh
Sales in the concession area | GWh
Sales by consumption segment | GWh
Free Client
+1.6%
Free Client
+0.4%
Captive
Captive
+0.4%
16,434
16,703
15,963
16,023
(184)
6,042
409
(201)
36
5,726
+5.5
5,441
5,520
+1.5%
-0.4%
15,963
+8.8%
-3.0%
-8.0%
+1.3%
16,023
10,708
10,660
10,522
-0.2%
10,503
3 Q 1 9
3 Q 2 0
3 Q 1 9
3 Q 2 0
3Q19
Resid.
Indust
Commerc.
Others
3Q20
Performance of main industrial and commercial activities in the
Main impacts by segment | %
concession
area
Resid
Ind
Com
Others
Total
11.4%
Billing calendar
2.1
0.1
1.5
0.7
1.0
4.7%
4.6%
2.5%
2.3%
Temperature
1.7
0.0
0.6
0.0
0.6
Migrations
0.0
-1.7
0.0
-0.8
-0.8
48.2% of
-3.1%
55.8% of
-7.2%
DG
-0.8
-0.1
-1.2
-0.3
-0.5
Industrial
Commercial
Macroeconomics/
Consumption
Consumption
5.8
-1.3
-8.9
1.8
0.2
-17.7%
Others
Food
Chemicals
Rubber &
Vehicles
Retail
Wholesale
Telecom Human Health
Plastic
Business
Trade
Care
5
1) Load net of losses; 2) If excluding the migration of large consumers, the load and the sales within the concession area in 3Q20 would have the following variations: +2.3% and +1.2%, respectively;
9M20 Energy Sales
Load1 in the concession area | GWh
Sales in the concession area | GWh
Sales by consumption segment | GWh
Free Client
Free Client
-3.8%
-3.1%
Captive
Captive
-3.8%
51,035
49,435
50,320
48,419
298
(1.371)
17,079
-1.3%
16,849
16,369
-2.3%
15,997
(797)
(31)
50,320
48,419
33,956
+2.0%
-7.5%
-9.5%
-0.4%
-4.0%
32,585
33,951
32,422
-4.5%
9 M 1 9
9 M 2 0
9 M 1 9
9 M 2 0
9 M 1 9
Resid.
Indust
Commerc.
Others
9 M 2 0
Performance of main industrial and commercial activities in the
Main impacts by segment | %
concession
area
4.8%
Resid
Ind
Com
Others
Total
2.5%
0.1%
Billing calendar
0.6
-0.1
0.6
0.1
0.3
-3.8%
Temperature
-1.5
0.0
-1.5
-0.2
-0.7
-4.7%
-9.3%
-7.3%
Migrations
0.0
-1.4
0.0
-2.1
-0.9
48.4% of
55.5% of
DG
-0.8
-0.2
-1.3
-0.4
-0.6
Industrial
Commercial
Macroeconomics/
Consumption
-21.8%
Consumption
3.6
-5.8
-7.2
2.2
-1.9
Others
Food
Chemicals
Rubber &
Vehicles
Retail
Wholesale
Human Health Telecom
Plastic
Business
Trade
Care
6
1) Load net of losses; 2) If excluding the migration of large consumers, the load and the sales within the concession area in 9M20 would have the following variations: -2.6% and -2.9%, respectively;
Delinquency and Energy Losses
Delinquency
ADA | R$ MM
-42.9%
79.3
80.0
61.1
57.9
-56.0%
70.0
60.0
39.5
34.9
50.0
1.28%
40.0
0.87%
30.0
0.49%
0.77%
0.51%
20.0
10.0
-
3Q19
4Q19
1Q20
2Q20
3Q20
Collection actions | Power cuts (thousands)
-33.9%
Sep-20:
589
591
603
287 k
(record)
172.0%
389
143
3Q19 4Q19 1Q20 2Q20 3Q20
Resolution 878 - Prohibition of power cuts from March 24th to July 31th.
Energy Losses
Losses | Last 12 months
9.31%9.06%
CPFL Energia
ANEEL Limits
8.27%8.20%
Sep-19Sep-20
Differences in calendar (billing days x load)¹:
Sep-20:+1.0 day
Sep-19:-1.7 day
Intensified actions against losses:
144.8 GWh of recovered energy
175,000 inspections
Installation of telemetry with inspection
1) Excluding the differences in the billing calendar, Losses in the 3Q20 would have a variation of +0.15% (9.05% in 3Q19 vs 9.20% in 3Q20)
1) From June to August of each year, according to concession financial asset calculation; 2) If disregarding expenses with private pension plan (-R$ 14 MM), PMSO was R$ 52
9 MM lower than in 3Q19.
3Q20 Results
EBITDA performance by segment
R$ million+20.8%+336 MM
EBITDA breakdown by segment
101 1,954
Comm, Services &
226(1)11
1,618
3Q19
Distribution
Comm, Services
Conventional
& Others
Generation
Conventional Generation: R$ 349 million (+3.2%)
Lower expenses with GSF (+R$ 11 MM)
Energy contract readjustments (+R$ 4 MM)
Others (-R$4 MM)
Renewable Others
Generation2%
25%
Conventional
Distribution
Generation
Renewable
3Q20
55%
18%
Generation
Renewable Generation: R$ 485 million (+26.3%)
Higher wind farms generation/availability
(+R$ 31 MM)
Lower expenses with GSF (+R$ 26 MM)
Energy contract readjustments (+R$ 26 MM)
PMSO (+R$ 18 MM)
10
3Q20 Results
Net Income performance
+80.8%
+604 MM
R$ million
291
1,352
336
(60)
36
748
3Q19
EBITDA
Financial Results
Depreciation /
Income tax
3Q20
Amortization
FinancialFinancialResultsResults
MTM(-R$ 67 MM)
Re-IPOresources in 3Q19 (-R$56 MM)
Update in sectoral financial A&L (-R$20 MM)
Expenses with net debt (+R$ 99 MM)
Others (-R$16 MM)
Income Tax
Recognition of tax credits
in CPFL Renováveis (+R$
271 MM)
11
9M20 Results
Performance of EBITDA and Net Income
R$ million
+4.4%
+205 MM
132 (34) 24
4,654
83 4,858
+43.7%
+826 MM
211 2,718
420 (10)
1,892 205
+4.9%
-22.4%
+2.4%
+10.1%
9M19
Distribution Comm, Services
Conventional
Renewable
9M20
& Others
Generation
Generation
EBITDA
Increase in Distribution segment (+4.9%), mainly favored by good performance in market/tariff and lower PMSO
Renewable Generation reflecting contract inflation adjustments and higher availability, partially offset by a slightly weaker wind performance
+4.4%
-74.6%
+0.8%
-21.8%
9M19
EBITDA
Financial
Depreciation / Income tax
9M20
Results Amortization
Net Income
Financial results favored by lower interest rates/decrease in the cost of debt (R$ 321 million) and MTM (R$ 198 million)
Recognition of tax credits in CPFL Renováveis (+R$ 271 MM), partially offset by higher income tax due to better results
12
CAPEX 3Q20
2%
20%
Distribution
R$ 601 million
Increase of 9.2% if compared to 3Q19
Expansion, upgrade and maintenance of the electric system
Renewable Generation
R$ 98 million
Implementation of the projectsGameleira and Cherobim
Total Investment of
R$ 770 million
in 3Q20
Increase of 25.0%
compared to 3Q19
Transmission
R$ 54 million
Beginning of the projects sold in 2018 auctions:
Maracanaú
Sul I and Sul II
Conventional
Generation
R$ 1 million
Operational infrastructure and maintenance improvements
78%
Services
R$ 16 million
Upgrade of management and operational support systems
Acquisition and replacement of vehicles and equipment
13
Indebtedness
Leverage l Financial covenants criteria | R$ billion
16.3
16.8
15.1
15.0
14.5
13.3
3.19 3.05
Adjusted Net
2.52
2.21
2.29
1.93
Debt
1
/Adjusted
EBITDA2
2017
2018
2019
1Q20
2Q20
3Q20
Adjusted EBITDA1,2
4,531
5,342
6,677
6,846
6,548
6,895
R$ Million
Gross debt cost3 IFRS | End of period
Nominal
Real
7.5%
6.8%
6.2%
3.8%
5.4%
4.2%
3.6%
3.6%
1.8%
2.1%
2.0%
0.5%
2018
3Q19
2019
1Q20
2Q20
3Q20
Gross debt breakdown by indexer3
Debt Amortization Schedule | IFRS End of period
IFRS | 3Q20
Cash Coverage:
1.92x Short-Term
Amortization(12M)
21%
77%
2.613
2%
6.758
4.738
2.903
2.831
CDI TJLP
Inflation
622
Cash
2020
2021
2022
2023
1) LTM EBITDA; 2) Adjusted by the proportional consolidation as well as considering SGBP's loan agreement; 3) Financial debt (-) hedge.
Average Tenor: 2.68 years
Short-Term (12M): 20% of total
Short Term
Long Term
3.600
2.725
20242025+
14
Social Actions
"CPFL nos Hospitais"
Largest energy efficiency program in
hospitals in Brazil
Up to: 200 hospitals | R$ 150 MM
42,095 replaced lamps
2,807 kWp in installed capacity of PV systems
R$ 2.34 million/yearof estimated savings
4.84 GWh/year of expected solar energy (enough to supply 2,476 residences)
363 tCO2 of expected avoided emissions (equivalent to planting 2,179 trees)
Total amount invested up to Sep-20:R$ 50.5 million. 48 Hospitals with concluded actions
11th Commitment of Sustainability
Plan
Programs to develop the future of children and adolescents through sport and culture, contributing to reducing the levels of social vulnerability
"Instituto Vanderlei Cordeiro de Lima"- democratization of sport benefiting 240 athletes (Investment: R$ 1.5 million)
"Instituto Anelo"- music courses for ~ 500 students in 2020 (Investment: R$ 450,000)
"Programa Semear"- Stimulus to volunteering for CPFL employees, benefiting 10 NGOs in 2020, with ~ 1,500 volunteers in SP and RS (Investment: R$ 103,900)
13th Commitment of
Sustainability Plan
Donations
during COVID-19
pandemic
R$ 5 MM donated to 20 hospitalsacross the concession area forCovid-19tests, masks and cleaning materials
R$ 1 MMdonated to Saving Lives Program of BNDES
State Gridalso donated 120 thousand masks to the state government of São Paulo and the city of Campinas
CPFL Energia SA published this content on 13 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2020 13:54:05 UTC
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