Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____.
São Paulo, March 21, 2016 – CPFL Energia S.A. (BM&FBOVESPA: CPFE3 and NYSE: CPL), announces its 4Q15 results. The financial and operational information herein, unless otherwise indicated, is presented on a consolidated basis and is in accordance with the applicable legislation. Comparisons are relative to 4Q14, unless otherwise stated.
CPFL ENERGIA ANNOUNCES ITS 4Q15 RESULTS
Indicators (R$ Million) |
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Sales within the Concession Area - GWh |
14,504 |
15,318 |
-5.3% |
57,558 |
59,962 |
-4.0% |
Captive Market |
10,621 |
11,075 |
-4.1% |
41,730 |
43,160 |
-3.3% |
TUSD |
3,883 |
4,243 |
-8.5% |
15,829 |
16,802 |
-5.8% |
Gross Operating Revenue(1) |
8,296 |
6,490 |
27.8% |
32,862 |
21,851 |
50.4% |
Net Operating Revenue(1) |
4,507 |
4,934 |
-8.7% |
19,159 |
16,361 |
17.1% |
EBITDA (IFRS)(2) |
1,005 |
1,342 |
-25.1% |
3,750 |
3,761 |
-0.3% |
Adjusted EBITDA(3) |
844 |
914 |
-7.7% |
3,948 |
3,901 |
1.2% |
Net Income (IFRS) |
363 |
470 |
-22.8% |
875 |
886 |
-1.3% |
Adjusted Net Income(4) |
255 |
284 |
-10.1% |
1,124 |
1,162 |
-3.2% |
Investments |
496 |
308 |
61.1% |
1,428 |
1,062 |
34.5% |
|
|
|
|
|
|
|
Notes:
(1) Disregard construction revenues;
(2) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12;
(3) Adjusted EBITDA considers similar holdings in each of the assets in which CPFL Energia has a stake, the sectorial financial assets and liabilities (previously called regulatory assets and liabilities) and excludes the non-recurring effects;
(4) Adjusted Net Income considers similar holdings in each of the assets in which CPFL Energia has a stake, the sectorial financial assets and liabilities (previously called regulatory assets and liabilities) and excludes the non-recurring effects.
4Q15 HIGHLIGHTS
• Sales dropped 5.3% in the concession area in 4Q15 - residential (-2.0%), commercial (-2.2%) and industrial (-9.6%)
• Sales dropped 4.0% in the concession area in 2015 - residential (-2.0%), commercial (-1.0%) and industrial (-6.9%)
• Investments of R$ 496 million in 4Q15 and of R$ 1,428 million in 2015
• Renegotiation of the hydrological risk, represented by the consents granted by ANEEL in December 2015 to Enercan, Ceran, Paulista Lajeado, Foz do Chapecó and projects controlled by CPFL Renováveis and negotiated in the Proinfa; the total renegotiated was of 458.8 average MW
• brAA- rating defined by Standard&Poor’s Rating Services to CPFL Energia and its subsidiaries
• AA(bra) rating defined by Fitch Ratings to CPFL Energia and its subsidiaries
• Entry of CPFL Energia’s shares in the IBrX-50 of the BM&FBOVESPA and, consequently, becoming a component stock of the ICO2 (Carbon Efficient Index) in January 2016
• CPFL Energia’s shares were maintained in the ISE (the BM&FBOVESPA’s Corporate Sustainability Index), for the 11th consecutive year
• CPFL Energia was classified as a member in Sustainability Yearbook 2015, prepared by RobecoSAM, responsible for review of the DJSI
4Q15/2015 Results | March 21, 2016 |
INDEX
1) MESSAGE FROM THE CEO | 4 |
2) ENERGY SALES | 6 |
2.1) Sales within the Distributors’ Concession Area | 6 |
2.1.1) Sales by segment – Concession Area | 7 |
2.1.2) Sales to the Captive Market | 7 |
2.1.3) TUSD | 7 |
2.2) Contracted Demand in % (high voltage) | 8 |
2.3) Generation Installed Capacity | 8 |
3) INFORMATION ON INTEREST IN COMPANIES AND CRITERIA OF FINANCIAL STATEMENTS | |
CONSOLIDATION | 9 |
3.1) Consolidation of CPFL Renováveis Financial Statements | 11 |
3.2) Presentation of adjusted figures | 11 |
4) ECONOMIC-FINANCIAL PERFORMANCE | 12 |
4.1) Sectoral Financial Assets and Liabilities | 12 |
4.2) Operating Revenue | 13 |
4.3) Cost of Electric Energy | 13 |
4.4) Operating Costs and Expenses | 14 |
4.5) EBITDA | 16 |
4.6) Financial Result | 17 |
4.7) Net Income | 18 |
5) DEBT | 19 |
5.1) Debt (IFRS) | 19 |
5.2) Debt (Proforma) | 20 |
5.2.1) Debt Evolution in Proforma criteria (R$ Billion) | 20 |
5.2.2) Debt Amortization Schedule in Proforma criteria | 20 |
5.2.3) Indexation and Debt Cost in Proforma criteria | 22 |
5.3) Net Debt and Leverage (Covenant criteria) | 22 |
5.4) Ratings | 23 |
6) INVESTMENTS | 23 |
6.1) Capital Expenditures | 23 |
6.2) Projected Capital Expenditures | 24 |
7) ALLOCATION OF RESULTS | 25 |
8) STOCK MARKETS | 26 |
8.1) Stock Performance | 26 |
8.2) Daily Average Volume | 26 |
9) CORPORATE GOVERNANCE | 28 |
10) CURRENT SHAREHOLDERS STRUCTURE – 12/31/2015 | 29 |
11) PERFORMANCE OF THE BUSINESS SEGMENTS | 30 |
11.1) Distribution Segment | 30 |
11.1.1) Economic-Financial Performance | 30 |
11.1.1.1) Sectoral Financial Assets and Liabilities | 30 |
11.1.1.2) Operating Revenue | 30 |
11.1.1.3) Cost of Electric Power | 31 |
11.1.1.4) Operating Costs and Expenses | 32 |
11.1.1.5) EBITDA | 34 |
11.1.1.6) Financial Result | 34 |
11.1.1.7) Net Income | 35 |
11.1.2) Annual Tariff Adjustment | 35 |
Página 2 de 63
4Q15/2015 Results | March 21, 2016 |
11.1.3) 2015 Extraordinary Tariff Review (ETR) | 36 |
11.1.4) 4th Tariff Review Periodic Cycle | 37 |
11.1.4.1) 4th Periodical Tariff Review Cycle – CPFL Piratininga | 37 |
11.1.5) Operating Performance of Distribution | 38 |
11.1.5.1) SAIDI and SAIFI | 38 |
11.1.5.2) Losses | 39 |
11.2) Commercialization and Services Segments | 39 |
11.3) Conventional Generation Segment | 40 |
11.3.1) Economic-Financial Performance | 40 |
11.4) CPFL Renováveis | 44 |
11.4.1) Economic-Financial Performance | 44 |
11.4.2) Status of Generation Projects – 100% Participation | 47 |
12) ATTACHMENTS | 49 |
12.1) Statement of Assets – CPFL Energia | 49 |
12.2) Statement of Liabilities – CPFL Energia | 50 |
12.3) Income Statement – CPFL Energia (IFRS) | 51 |
12.4) Income Statement – CPFL Energia (Adjusted) | 52 |
12.5) Cash Flow – CPFL Energia | 53 |
12.6) Income Statement – Conventional Generation Segment (IFRS) | 54 |
12.7) Income Statement – Conventional Generation Segment (Adjusted) | 55 |
12.8) Income Statement – CPFL Renováveis (IFRS) | 56 |
12.9) Income Statement – CPFL Renováveis (Adjusted) | 57 |
12.10) Income Statement – Distribution Segment (IFRS) | 58 |
12.11) Income Statement – Distribution Segment (Adjusted) | 59 |
12.12) Economic-Financial Performance – Distributors | 60 |
12.13) Sales within the Concession Area by Distributor (in GWh) | 62 |
12.14) Sales to the Captive Market by Distributor (in GWh) | 63 |
Página 3 de 63
4Q15/2015 Results | March 21, 2016 |
The year 2015 proved to be one of the most challenging in CPFL Energia’s history. Nevertheless, if we draw a parallel between the situation faced by the electricity sector at the start of 2015 with the current scenario, the progress made during the course of the year is remarkable.
In the beginning of 2015, the risk of rationing was imminent. With a wet period during which Affluent Natural Energy (ENA) in Brazil’s National Interconnected System (SIN) reached only 71% of the long-term average natural flow (MLT), SIN reservoirs closed April with 35% of their capacity. Recovery of the reservoirs came with an ENA of 113% of MLT during the dry period, combined with load shedding of 1.7% in Brazil in 2015. Now, in early 2016, the Electricity Sector Monitoring Committee (CMSE) calculated the risk of rationing at 0%, which means one less thing that industry players have to worry about.
In the regulatory area, significant progress was made. Energy distributors started the year with the threat of cash imbalances, without being able to rely on funds from the ACR account or the Treasury, which used to subsidize tariffs in the past. However, ANEEL authorized an Extraordinary Tariff Review (RTE), implemented on March 1, 2015, which partially offset the increase in the Parcel A (non-manageable) costs of Distributors. Parcel A was under pressure especially due to the increase in CDE, a sector charge that was significantly hiked at the start of 2015. Another mechanism implemented at the start of the year was dynamic pricing in the form of Tariff Flags, which was a quicker-reaction tool that enabled an additional charge in tariffs to cover the costs of thermal generation and the exposure of distributors to PLD (hydrological risk, ESS and involuntary exposure). Despite all this, the cash gap continued and the CPFL Energia group registered accumulated CVAs of about R$ 1.9 billion at the end of 3Q15, almost equivalent to one year’s cash generation of its energy distributors. In 4Q15, this scenario of accumulation of regulatory assets started being reversed, bringing some relief to the Company's working capital, which closed 2015 with around R$ 1.7 billion in accumulated CVAs.
Though “Tariff Realism”, which allowed readjustments in energy prices, was essential to mitigate cash flow gaps at the distributors, together with the macroeconomic downturn - which resulted in the reduction of the volume of real income, increase in the unemployment rate, lower volume of retail sales and fall in the industrial production - it led to a drop in energy sales, which recorded a consolidated decrease of 4.0% in the year to the set of eight distribution companies of CPFL Energia group, with 2.0% in residential consumption, 1.0% in commercial consumption and 6.9% in industrial consumption. With this scenario and to inhibit the increase in delinquency, the Company strengthened its collection actions since July 2015, increasing by more than 50% the number of cuts, charges and negativities among others.
The year began with uncertainties surrounding the renewal of distribution concessions, whose terms had not been defined in the Provisional Measure no. 579/2012, which only dealt with Generation and Transmission projects. During the year, ANEEL addressed the issue by setting the parameters for economic and financial sustainability and quality, which are fundamental to ensure quality customer service. On December 8, 2015, five Distributors that went through this process signed new agreements, which extended their concessions for another 30 years: CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Mococa and CPFL Jaguari.
Other important development in 2015 was the conclusion of the Public Hearing no. 23/2014, which dealt with the Tariff Review methodologies of distributors. Most of the methodologies were published in 1Q15, such as regulatory WACC and items such as Operating Costs, Other Revenue, Losses, General Procedures and Others. In December 2015, the methodologies for the treatment of Regulatory Remuneration Base were published, thus concluding the process. The first group company to go through the 4th Cycle of Tariff Review was CPFL Piratininga, whose tariff event occurred on October 23, 2015. The progress achieved with the new conditions enabled CPFL Piratininga to increase by 5.31% its Parcel B (parcel that remunerates investment and covers operating costs and investment costs). The average tariff increase of CPFL Piratininga was 21.11%.
Página 4 de 63
4Q15/2015 Results | March 21, 2016 |
Finally, the renegotiation of hydrological risk (GSF) of hydroelectric generators was another positive development for the sector, achieved during 2015 after four rounds of Public Hearing. Apart from the impact of adverse hydrological conditions, hydroelectric generation started decreasing also due to unforeseen factors beyond the control of hydroelectric power plants, such as thermal dispatch outside the merit order and growth in the reserve energy capacity, basically composed of wind power, a non-dispatchable source. These conditions have been negatively affecting the balance sheets of generators since the end of 2013. Plants were then offered the possibility of paying a premium to renegotiate this risk. CPFL Energia chose to renegotiate its eligible agreements in the Regulated Contracting Environment (ACR), under SP100 modality, protecting 100% of GSF until the end of the agreements. Renegotiation of hydrological risk returns to hydroelectric power generators, predictability and stability of cash flows. The option for renegotiation enabled the reversal of R$ 134 million in 2015, relating to 459 MW of contracts already renegotiated.
In renewable generation, the positive highlight of 2015 was the delivery of the wind farm Morro dos Ventos II (29 MW of installed capacity), with eight months in advance, increasing the installed capacity of our subsidiary CPFL Renováveis to 1,802 MW. In April 2015, CPFL Renováveis had success in the A-5 auction, when hiring Boa Vista II SHPP (26.5 MW) to be delivered in 2020. In CPFL Renováveis pipeline, there are about 3 GW of projects to be developed. In the first full year of consolidation of the assets of DESA, the company reached the mark of R$ 1.0 billion of EBITDA (IFRS) contributing in R$ 517 million to the consolidated results of the group, if our stake of 51.6% in the subsidiary CPFL Renováveis is considered.
Leverage in CPFL Energia Group showed improvement in the quarter, reducing the indicator Net Debt/EBITDA of 3.46x in the end of 3Q15 to 3.41x in the end of 4Q15, when we consider the proportional contribution of each project in this indicator, the same criterion used for measure the financial covenants of the company. The turnaround in the balance of CVAs1, which ended the year at R$ 1.7 billion, down from R$ 1.9 billion in the previous quarter also helped to strengthen the company's cash, which ended the year 2015 with R$ 5.5 billion, more than enough to cover debt maturities until the end of 2017, reinforcing the strategy of the group to appreciate the liquidity. Despite the challenging environment, CPFL Energia presented an adjusted EBITDA with a slight growth of 1.2%, reaching R$ 3.9 billion in the year 2015, of which R$ 844 million in 4Q15.
Despite the improvements in the regulatory framework achieved in 2015, we must highlight the need for continued progress on regulatory issues in order to create the incentives for the electricity sector to resume investments. Public Hearings No. 004/2016 and no. 012/2016 are currently under discussion, to address issues related to overcontracting of the distribution companies, systemic event caused due to an energy contracting model designed for a power consumption in steady growth.
The challenges remain in 2016, given the worsening macroeconomic scenario in Brazil. However, the CPFL Energia group is committed to continuing its strategy of financial discipline and operational excellence in order to ensure long-term business sustainability in all the sectors it operates, while providing quality customer service and generating value for our stakeholders.
Wilson Ferreira Jr.
CEO of CPFL Energia
1 Excluding tariff flags not approved by Aneel up to the date and special obligations accounted under 4th Tariff Review Cycle methodology.
Página 5 de 63
4Q15/2015 Results | March 21, 2016 |
In 4Q15, sales within the concession area, achieved by the distribution segment, totaled 14,504 GWh, a decrease of 5.3%.
Sales within the Concession Area - GWh | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Captive Market |
10,621 |
11,075 |
-4.1% |
41,730 |
43,160 |
-3.3% |
TUSD |
3,883 |
4,243 |
-8.5% |
15,829 |
16,802 |
-5.8% |
Total |
14,504 |
15,318 |
-5.3% |
57,558 |
59,962 |
-4.0% |
In 4Q15, sales to the captive market totaled 10,621 GWh, a decrease of 4.1%. The energy volume, in GWh, consumed by free customers in the distributors’ concession areas, billed through the Distribution System Usage Tariff (TUSD), reached 3,883 GWh in 4Q15, a decrease of 8.5%. These reductions reflect the turmoil of the macroeconomic scenario, which has resulted in the drop in industrial production, lower sales volume of retail trade and reducing real income mass.
Sales within the Concession Area - GWh |
| ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Part. |
Residential |
4,093 |
4,176 |
-2.0% |
16,164 |
16,501 |
-2.0% |
28.2% |
Industrial |
5,643 |
6,244 |
-9.6% |
22,874 |
24,565 |
-6.9% |
38.9% |
Commercial |
2,578 |
2,635 |
-2.2% |
9,945 |
10,043 |
-1.0% |
17.8% |
Others |
2,191 |
2,262 |
-3.2% |
8,575 |
8,853 |
-3.1% |
15.1% |
Total |
14,504 |
15,318 |
-5.3% |
57,558 |
59,962 |
-4.0% |
100.0% |
Note: The tables with sales within the concession area by distributor are attached to this report in item 12.13.
Noteworthy in 4Q15, in the concession area:
· Residential and commercial segments (28.2% and 17.8% of total sales, respectively): down by 2.0% and up by 2.2%, respectively. This performance reflects the changes in the labor market, with the hike of unemployment, the decrease of the volume in real income and the increase in electricity tariffs. Although temperature has been higher in the 4Q15 (compared to 4Q14), was not sufficient to reverse the effects of macro-economic performance of classes they pulled down.
· Industrial segment (38.9% of total sales): decrease of 9.6%, reflecting weaker performance of the economic activity and the fall of the business confidence in the industry recently and excessive inventories observed in the industry in recent months. In the same period last year, industrial production fell by 11.89%. This result was common to all distribution group, especially CPFL Paulista, which fell by -9.1% or 274 GWh, CPFL Piratininga, down 10.2% (or 203 GWh) and RGE, which showed a decrease of 11.3% (or 107 GWh).
Página 6 de 63
4Q15/2015 Results | March 21, 2016 |
Sales to the Captive Market - GWh | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
4,093 |
4,176 |
-2.0% |
16,164 |
16,501 |
-2.0% |
Industrial |
2,035 |
2,273 |
-10.5% |
8,117 |
8,757 |
-7.3% |
Commercial |
2,351 |
2,409 |
-2.4% |
9,052 |
9,231 |
-1.9% |
Others |
2,142 |
2,217 |
-3.4% |
8,396 |
8,672 |
-3.2% |
Total |
10,621 |
11,075 |
-4.1% |
41,730 |
43,160 |
-3.3% |
Note: The tables with captive market sales by distributor are attached to this report in item 12.14.
The retail sales were influenced mainly by the decrease in consumption in the industrial class which, in turn, reflects the slowdown in economic activity and the fall of the confidence level and excessive inventories, as explained above. Another key factor that influenced the captive market was the performance of the residential segment, which decreased consumption in quarterly comparisons for the third time in a row.
TUSD - GWh | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Industrial |
3,608 |
3,972 |
-9.2% |
14,757 |
15,809 |
-6.7% |
Commercial |
226 |
226 |
0.2% |
893 |
813 |
9.8% |
Others |
48 |
45 |
7.5% |
179 |
181 |
-1.0% |
Total |
3,883 |
4,243 |
-8.5% |
15,829 |
16,802 |
-5.8% |
Página 7 de 63
4Q15/2015 Results | March 21, 2016 |
TUSD by Distributor - GWh | ||||||
4Q15 | 4Q14 | Var. | 2015 | 2014 | Var. | |
CPFL Paulista | 1,959 | 2,118 | -7.5% | 7,861 | 8,261 | -4.8% |
CPFL Piratininga | 1,347 | 1,479 | -8.9% | 5,640 | 6,045 | -6.7% |
RGE | 478 | 537 | -11.0% | 1,928 | 2,088 | -7.7% |
CPFL Santa Cruz | 12 | 11 | 3.1% | 46 | 45 | 2.0% |
CPFL Jaguari | 23 | 16 | 46.6% | 75 | 71 | 5.5% |
CPFL Mococa | 8 | 7 | 18.1% | 27 | 27 | -1.0% |
CPFL Leste Paulista | 13 | 12 | 6.9% | 49 | 47 | 4.7% |
CPFL Sul Paulista | 42 | 61 | -30.8% | 203 | 219 | -7.1% |
Total | 3,883 | 4,243 | -8.5% | 15,829 | 16,802 | -5.8% |
2.3) Generation Installed Capacity
In 4Q15, the Generation installed capacity of CPFL Energia, considering the stake in each project, reached 3,129 MW of installed capacity, an increase of 0.1% compared to 4Q14. This increase is mainly due to the addition of Morro dos Ventos II (2Q15) wind farms.
Página 8 de 63
4Q15/2015 Results | March 21, 2016 |
The interests directly or indirectly held by CPFL Energia in its subsidiaries and jointly-owned entities are described below. Except for: (i) the jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, that, as from January 1, 2013 (and for comparative purpose for the balances of 2012) are no longer proportionally consolidated in the Company’s financial statements, being their assets, liabilities and results accounted for using the equity method of accounting, and (ii) the investment in Investco S.A. recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.
As of December 31, 2015 and 2014, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis.
Energy distribution |
|
Company Type |
|
Equity Interest |
|
Location (State) |
|
Number of municipalities |
|
Approximate number of consumers |
|
Concession term |
|
End of the concession |
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Publicly-quoted corporation |
Direct |
Interior of São Paulo |
234 |
4,218 |
30 years |
November 2027 | |||||||
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-quoted corporation |
Direct |
Interior and coast of São Paulo |
27 |
1,659 |
30 years |
October 2028 | |||||||
Rio Grande Energia S.A. ("RGE") |
Publicly-quoted corporation |
Direct |
Interior of Rio Grande do Sul |
255 |
1,444 |
30 years |
November 2027 | |||||||
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Private corporation |
Direct |
Interior of São Paulo and Paraná |
27 |
205 |
30 years |
July 2045 | |||||||
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Private corporation |
Direct |
Interior of São Paulo |
7 |
57 |
30 years |
July 2045 | |||||||
Companhia Jaguari de Energia ("CPFL Jaguari") |
Private corporation |
Direct |
Interior of São Paulo |
2 |
39 |
30 years |
July 2045 | |||||||
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Private corporation |
Direct |
Interior of São Paulo |
5 |
83 |
30 years |
July 2045 | |||||||
Companhia Luz e Força de Mococa ("CPFL Mococa") |
|
Private corporation |
|
Direct |
|
Interior of São Paulo and Minas Gerais |
|
4 |
|
46 |
|
30 years |
|
July 2045 |
Energy generation (conventional and renewable sources) |
|
Company Type |
|
Equity Interest |
|
Location (State) |
|
Number of plants / type of energy |
|
Installed capacity | ||
|
|
|
|
|
Total |
|
CPFL participation | |||||
CPFL Geração de Energia S.A. ("CPFL Geração") |
Publicly-quoted corporation |
Direct |
São Paulo and Goiás |
1 Hydroelectric, 4 SHPPs (a) and 1 Thermal |
729 MW |
729 MW | ||||||
CERAN - Companhia Energética Rio das Antas ("CERAN") |
Private corporation |
Indirect |
Rio Grande do Sul |
3 Hydroelectric |
360 MW |
234 MW | ||||||
Foz do Chapecó Energia S.A. ("Foz do Chapecó") (b) |
Private corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
855 MW |
436 MW | ||||||
Campos Novos Energia S.A. ("ENERCAN") |
Private corporation |
Indirect |
Santa Catarina |
1 Hydroelectric |
880 MW |
429 MW | ||||||
BAESA - Energética Barra Grande S.A. ("BAESA") |
Publicly-quoted corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
690 MW |
173 MW | ||||||
Centrais Elétricas da Paraíba S.A. ("EPASA") |
Private corporation |
Indirect |
Paraíba |
2 Thermals |
342 MW |
182 MW | ||||||
Paulista Lajeado Energia S.A. ("Paulista Lajeado") |
Private corporation |
Indirect |
Tocantins |
1 Hydroelectric |
903 MW |
|
63 MW | |||||
CPFL Energias Renováveis S.A. ("CPFL Renováveis") |
Publicly-quoted corporation |
Indirect |
See Chapter 11.4.2 |
See Chapter 11.4.2 |
See Chapter 11.4.2 |
|
See Chapter 11.4.2 | |||||
CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras") |
|
Limited company |
|
Direct |
|
São Paulo |
|
6 MHPPs (d) |
|
4 MW |
|
4 MW |
Notes:
a) SHPP – Small Hydroelectric Power Plant;
b) The joint venture Chapecoense fully consolidates the interim financial statements of its direct subsidiary, Foz de Chapecó;
c) Paulista Lajeado has a 7% participation in the installed power of Investco S.A. (5.94% share of its capital).
d) MHPP – Micro Hydroelectric Power Plant.
Página 9 de 63
4Q15/2015 Results | March 21, 2016 |
Energy commercialization and services |
|
Company Type |
|
Core activity |
|
Equity Interest |
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Private corporation |
Energy commercialization |
Direct | |||
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional") |
Limited company |
Commercialization and provision of energy services |
Indirect | |||
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Private corporation |
Energy commercialization |
Indirect | |||
CPFL Planalto Ltda. ("CPFL Planalto") |
Limited company |
Energy commercialization |
Direct | |||
CPFL Brasil Varejista S.A. ("CPFL Brasil Varejista") |
Private corporation |
Energy commercialization |
Indirect | |||
CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços") |
Private corporation |
Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision |
Direct | |||
NECT Serviços Administrativos Ltda ("Nect") |
Limited company |
Provision of administrative services |
Direct | |||
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Limited company |
Provision of telephone answering services |
Direct | |||
CPFL Total Serviços Administrativos Ltda. ("CPFL Total") |
Limited company |
Billing and collection services |
Direct | |||
CPFL Telecom S.A ("CPFL Telecom") |
Private corporation |
Telecommunication services |
Direct | |||
CPFL Transmissão Piracicaba S.A ("CPFL Transmissão Piracicaba") |
Private corporation |
Electric energy transmission services |
Indirect | |||
CPFL Eficiência Energética S.A ("CPFL ESCO") |
Private corporation |
Management in Energy Efficiency |
Direct | |||
CPFL Transmissora Morro Agudo S.A ("CPFL Transmissão Morro Agudo") (f) |
Private corporation |
Electric energy transmission services |
Direct | |||
TI Nect Serviços de Informática Ltda. ("Authi") (g) |
Limited company |
IT services |
Direct | |||
CPFL GD S.A ("CPFL GD") (h) |
|
Private corporation |
|
Electric energy generation services |
|
Indirect |
e) The incorporation of CPFL Transmissora Morro Agudo S.A., subsidiary of CPFL Geração, was approved in January 2015, with the objective of building and operating electric energy transmission concessions, including construction, implementation, operation and maintenance of transmission facilities of the basic network of the Interlinked National System.
f) In September, 2014 the direct subsidiary TI Nect Serviços de Informática Ltda. (“Authi”), was set up with the objective of providing informatics, information technology maintenance, system update, program development and customization and computer and peripheral equipment maintenance services.
g) The main objective of CPFL GD S.A., incorporated in August 2015 and fully controlled by CPFL Eficiência Energética S.A., is the provision of general consultancy services in the electric energy market and commercialization of assets related to the electric energy generation plants.
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4Q15/2015 Results | March 21, 2016 |
Other |
|
Company Type |
|
Core activity |
|
Equity Interest |
CPFL Jaguariúna Participações Ltda. ("CPFL Jaguariúna") |
Limited company |
Venture capital company |
Direct | |||
CPFL Jaguari de Geração de Energia Ltda. ("Jaguari Geração") |
Limited company |
Venture capital company |
Direct | |||
Chapecoense Geração S.A. ("Chapecoense") |
Private corporation |
Venture capital company |
Indirect | |||
Sul Geradora Participações S.A. ("Sul Geradora") |
|
Private corporation |
|
Venture capital company |
|
Indirect |
3.1) Consolidation of CPFL Renováveis Financial Statements
On December 31, 2015, CPFL Energia indirectly held 51.61% of CPFL Renováveis, through its subsidiary CPFL Geração.
CPFL Renováveis has been fully consolidated (100%, line by line), in CPFL Energia’s financial statements since August 1, 2011, and the interest held by the non-controlling shareholders has been mentioned bellow the net income line (in the Financial Statements), as “Non-Controlling Shareholders’ Interest”, and in the Shareholders Equity (in the Balance Sheet) in the line with the same name.
3.2) Presentation of adjusted figures
Since the 1Q14, the presentation of adjusted figures considers similar holdings in each of the assets in which CPFL Energia has a stake. Therefore, the result of adjusted figures already excludes non-controlling shareholders’ interests.
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4Q15/2015 Results | March 21, 2016 |
Consolidated Income Statement - CPFL ENERGIA (IFRS - R$ Thousands) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue2 |
8,296,123 |
6,490,227 |
27.8% |
32,862,289 |
21,851,382 |
50.4% |
Net Operating Revenue2 |
4,507,180 |
4,934,031 |
-8.7% |
19,159,200 |
16,360,945 |
17.1% |
Cost of Electric Power |
(2,962,166) |
(2,989,625) |
-0.9% |
(13,311,747) |
(10,643,131) |
25.1% |
Operating Costs & Expenses |
(1,238,405) |
(1,182,153) |
4.8% |
(4,642,033) |
(4,122,739) |
12.6% |
EBIT |
585,509 |
1,071,197 |
-45.3% |
2,252,090 |
2,540,073 |
-11.3% |
EBITDA3 |
1,005,017 |
1,342,397 |
-25.1% |
3,750,012 |
3,760,903 |
-0.3% |
Financial Income (Expense) |
(114,496) |
(267,525) |
-57.2% |
(1,014,520) |
(1,089,454) |
-6.9% |
Income Before Taxes |
562,913 |
765,344 |
-26.4% |
1,454,454 |
1,510,304 |
-3.7% |
Net Income |
362,507 |
469,616 |
-22.8% |
875,277 |
886,444 |
-1.3% |
Consolidated Income Statement - CPFL ENERGIA (Adjusted - R$ Thousands)1 | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue2 |
8,219,827 |
5,926,465 |
38.7% |
32,588,326 |
21,110,459 |
54.4% |
Net Operating Revenue2 |
4,429,400 |
4,414,348 |
0.3% |
18,914,808 |
15,724,038 |
20.3% |
Cost of Electric Power |
(2,874,557) |
(2,766,961) |
3.9% |
(12,427,375) |
(9,236,978) |
34.5% |
Operating Costs & Expenses |
(1,274,621) |
(1,318,082) |
-3.3% |
(4,713,652) |
(4,610,864) |
2.2% |
EBIT |
559,122 |
638,247 |
-12.4% |
2,820,449 |
2,821,193 |
0.0% |
EBITDA3 |
843,908 |
914,199 |
-7.7% |
3,947,766 |
3,901,084 |
1.2% |
Financial Income (Expense) |
(95,292) |
(210,496) |
-54.7% |
(950,247) |
(967,761) |
-1.8% |
Income Before Taxes |
463,830 |
427,751 |
8.4% |
1,870,202 |
1,852,480 |
1.0% |
Net Income |
255,066 |
283,609 |
-10.1% |
1,124,379 |
1,161,966 |
-3.2% |
Notes:
(1) Adjusted figures take into account CPFL’s equivalent stake in each generation project, the sectorial financial assets and liabilities (previously called regulatory assets and liabilities) of 2014 and disregard non-recurring effects. Since 4Q14, the old regulatory assets and liabilities, now called sectorial financial assets and liabilities, are being recognized by the IFRS. Details about the adjustments in EBITDA and net income are in items 4.5 and 4.7 of this report.
(2) Disregard construction revenues;
(3) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization, according to CVM Instruction no. 527/12.
On November 25, 2014, through Dispatch no. 4,621, Aneel approved the amendment to concession agreements of distribution companies, in order to include a specific clause guaranteeing that the balance remaining of any insufficient payment or reimbursement of tariff due to termination of the concession, for any reason, will be indemnified.
After this change, the Securities and Exchange Commission of Brazil (CVM) approved, on December 9, 2014, through Resolution no. 732, the recognition of assets and liabilities that were previously called “regulatory assets and liabilities” in the financial statements of distribution companies, which are now called “sectorial financial assets and liabilities”.
In 4Q15, R$ 177 million, net of PIS and COFINS, were accounted in sectoral financial assets and liabilities related to this period. On December 31, 2015, the balance of these sectoral financial assets and liabilities was of R$ 1,954 million (R$ 1,682 million, excluding tariff flags not approved by Aneel up to the date and special obligations accounted under 4th Tariff Review Cycle methodology), compared to a balance of R$ 2,302 million in the end of September 2015 (R$ 1,907 million, excluding tariff flags not approved by Aneel up to the date).
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4Q15/2015 Results | March 21, 2016 |
Disregarding the revenue from the construction of concession infrastructure, gross operating revenue (IFRS) reached R$ 8,296 million in 4Q15, an increase of 27.8% (R$ 1,806 million). The adjusted gross operating revenue was of R$ 8,220 million, an increase of 38.7% (R$ 2,293 million).
Net operating revenue (IFRS disregarding the revenue from the construction of concession infrastructure) reached R$ 4,507 million in 4Q15, a decrease of 8.7% (R$ 427 million). The adjusted net operating revenue, disregarding the revenue from the construction of concession infrastructure, amounted to R$ 4,429 million, an increase of 0.3% (R$ 15 million).
The increase in net operating revenue, already considering revenue eliminations, was mainly caused by the following factors:
· Increase of revenues in the Distribution segment, in the amount of R$ 136 million (for more details, see item 11.1.1);
· Increase of revenues in CPFL Renováveis, in the amount of R$ 42 million;
Partially offset by:
· Decrease of revenues in the Conventional Generation segment, in the amount of R$ 56 million; and
· Increase of revenues in the Commercialization and Services segment, in the amount of R$ 107 million.
The cost of electric energy (IFRS), comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 2,962 million in 4Q15, virtually stable (-0.9%) in comparison with 4Q14 (decrease of R$ 27 million). The adjusted cost of electric energy was R$ 2,875 million in 4Q15, an increase of 3.9% (R$ 108 million).
The factors that explain these variations follow below:
· The cost of electric power purchased for resale (IFRS) in 4Q15 reached R$ 2,639 million, a decrease of 9.6% (R$ 279 million), mainly due to the following non-recurring events:
ü GSF (Generation Scale Factor), in the amount of R$ 26 million in 4Q15 versus R$ 144 million in 4Q14; and
ü Renegotiation of GSF related to the ACR (regulated market) portion of Ceran, Enercan, Foz do Chapecó, Paulista Lajeado and 9 SHPPs of CPFL Renováveis (reversal of GSF expenses net of R$ 9.50/MWh risk premium), in the amount of R$ 134 million; and
ü CPFL Renováveis’ energy purchase for SHPPs, totaling R$ 1.0 million in 4Q15 and R$ 1.0 million in 4Q14.
In the adjusted figures, that disregard these effects, the cost of electric power purchased for resale in 4Q15 was R$ 2,546 million, a decrease of 5.3% (R$ 143 million). The decrease mainly reflects the variations below:
(i) Decrease in the amount of energy purchased in the spot market (R$ 409 million), excluding GSF effects (non-recurring), due to lower spot prices (in SE/CW, R$ 177.09/MWh in 4Q15 vs R$ 727.54/MWh in 4Q14; in South, R$ 166.85/MWh in 4Q15 vs R$ 712.43/MWh in 4Q14);
(ii) Decrease in the cost of energy purchased through auction in the regulated environment and bilateral contracts (R$ 352 million), mainly caused by the decrease of 21.3% in the average purchase price (R$ 155.47/MWh in 4Q15 vs R$ 197.64/MWh in 4Q14), despite the increase of 6.6% in the volume of purchased energy (732 GWh);
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(iii) Decrease of 0.6% in the PROINFA cost (R$ 0.4 million), mainly due to the decrease of 1.6% in the average purchase price (from R$ 222.33/MWh in 4Q14 to R$ 218.79/MWh in 4Q15), despite the increase of 1.1% (3 GWh) in the volume of purchased energy;
Partially offset by:
(iv) Increase in the cost of energy from Itaipu (R$ 442 million), mainly due to the increase of 124.4% in the average purchase price (R$ 311.50/MWh in 4Q15 vs R$ 138.79/MWh in 4Q14), despite the decrease of 1.6% (or 42 GWh) in the volume of purchased energy;
(v) The recording of ACR account loans in 4Q14, in the amount of R$ 161 million, in order to cover costs with involuntary exposure and thermal dispatch incurred by the distribution companies.
(vi) Decrease of 5.8% (R$ 16 million) in PIS and Cofins tax credits (cost reducer), generated from the energy purchase;
· Charges for the use of the transmission and distribution system (IFRS) reached R$ 323 million in 4Q15, an increase of 354.9% (R$ 252 million) if compared to 4Q14. In adjusted figures, that take into account the proportionate consolidation of generation assets, sector charges reached R$ 329 million, an increase of 321.1% (R$ 251 million), due to the following factors:
(i) Increase in the system service usage charges – ESS (R$ 323 million), from a revenue of R$ 175 million in 4Q14 to a cost of R$ 148 million in 4Q15, due to the spot price (PLD) reduction;
(ii) Increase of R$ 11 million in charges for connection, usage of the distribution system and Itaipu transmission;
Partially offset by:
(iii) Revenue of R$ 41 million in Reserve Energy Charge – EER, recorded in 4Q15 and not observed in 4Q14;
(iv) Decrease in basic network charges (R$ 17 million); and
(v) Increase of 424.9% (R$ 26 million) in PIS and Cofins tax credits (cost reducer), generated from the charges.
4.4) Operating Costs and Expenses
Operating costs and expenses (IFRS) were R$ 1,238 million in 4Q15, an increase of 4.8% (R$ 56 million). Adjusted operating costs and expenses were R$ 1,275 million in 4Q15, a decrease of 3.3% (R$ 43 million), due to the following factors:
· Decrease of 9.0% (R$ 28 million) in the cost of building the infrastructure of the concession. This item, which reached R$ 279 million in 4Q15, has its counterpart in the “operating revenue”;
· Decrease of 7.4% in the Private Pension Fund expenses (R$ 1 million);
· The adjusted PMSO item, that reached R$ 700 million in 4Q15, compared to R$ 724 million in 4Q14, registering a decrease of 3.3% (R$ 24 million);
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4Q15/2015 Results | March 21, 2016 |
The table below lists the main variation in PMSO:
MANAGERIAL ADJUSTMENTS ON PMSO, FOR COMPARISON PURPOSES (in millions of Reais) | ||||
Variation | ||||
4Q15 | 4Q14 | |||
R$ MM | % | |||
Reported PMSO (IFRS) | ||||
Personnel | (240.3) | (226.9) | (13.4) | 5.9% |
Material | (34.1) | (29.7) | (4.4) | 14.8% |
Outsourced Services | (146.3) | (153.4) | 7.2 | -4.7% |
Other Operating Costs/Expenses | (200.6) | (144.6) | (56.0) | 38.7% |
Allowance for doubtful accounts | (32.8) | (22.7) | (10.1) | 44.4% |
Legal, judicial and indemnities expenses | (66.3) | (84.2) | 17.9 | -21.2% |
Others | (101.5) | (37.7) | (63.7) | 168.9% |
Reported PMSO (IFRS) - (A) | (621.2) | (554.7) | (66.6) | 12.0% |
Proportional Consolidation + Regulatory Assets&Liabilities | ||||
Personnel | 5.3 | 5.5 | ||
Material | (77.4) | (170.7) | ||
Outsourced Services | (6.4) | 11.9 | ||
Other Operating Costs/Expenses | (30.9) | (1.1) | ||
Allowance for doubtful accounts | 0.3 | (0.0) | 0.3 | - |
Legal, judicial and indemnities expenses | 1.1 | 0.3 | 0.8 | 302.2% |
Others | (10.5) | (5.7) | (4.8) | 84.7% |
Total Proportional Consolidation + Regulatory Assets&Liabilities - (B) | (109.4) | (154.3) | 44.9 | -29.1% |
Non-recurring effects | ||||
Impairment of assets | (39.0) | (39.0) | ||
Insurance reimbursement | 8.4 | 8.4 | ||
Agreement with equipment supplier delay in plant construction | 14.9 | (14.9) | ||
(=) Total Non-recurring effects - (C) | (30.6) | 14.9 | (0.6) | (0.29) |
Adjusted PMSO | ||||
Personnel | (235.0) | (221.4) | (13.6) | 6.1% |
Material | (111.5) | (200.4) | 88.8 | -44.3% |
Outsourced Services | (152.6) | (141.5) | (11.1) | 7.9% |
Other Operating Costs/Expenses | (200.8) | (160.6) | (40.2) | 25.1% |
Allowance for doubtful accounts | (33.0) | (21.4) | (11.7) | 54.7% |
Legal, judicial and indemnities expenses | (66.8) | (84.2) | 17.4 | -20.6% |
Others | (101.0) | (55.1) | (45.9) | 83.4% |
Total adjusted PMSO - (D) = (A) + (B) - (C) | (700.0) | (723.9) | 23.9 | -3.3% |
This variation is explained mainly by the following aspects:
(i) Decrease of 44.3% in Material (R$ 89 million), mainly explained by (iv.a) additional material expenses related to the oil acquisition by Epasa (Termonordeste TPP and Termoparaíba TPP), that reduced R$ 84 million in Conventional Generation and other effects (R$ 5 million). The average Unit Variable Cust (CVU) this termal plant decreased of R$ 510/MWh in 4Q14 to R$ 367/MWh in 4Q15. The item related to oil acquisition by Epasa is directly associated to revenue generation from this activity.
Partially offset by:
(ii) Personnel expenses, that recorded an increase of 6.1% (R$ 14 million), mainly due to: (i.a) Collective Bargaining Agreement – wages and benefits (R$ 12 million); (i.b) increase in the Services segment business, due to business expansion of CPFL Serviços, CPFL Atende and Nect (R$ 6 million) and (i.c) others effects (R$ 3 million), partially offset by lower realization of employee profit-sharing program (R$ 7 million);
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4Q15/2015 Results | March 21, 2016 |
(iii) Out-sourced services expenses, which registered an increase of 7.9% (R$ 11 million), mainly due to (iii.a) increase in the Services segment business (R$ 5 million); (iii.b) increase in the Conventional Generation segment business (R$ 4 million) and (iii.c) increase in the Distribution segment business (R$ 2 million).
(iv) Other operational costs/expenses, that registered an increase of 25.1% (R$ 40 million), mainly due to:
ü Increase of 54.7% in allowance for doubtful accounts (R$ 12 million)
ü Expenses of R$ 12 million in 4Q15 related to the reclassification of operating fines from financial expenses to operating expenses;
ü Reduction of 45.1% in the gain on the disposal and decommissioning of assets (R$ 5 million)
ü Increase of 55.1% in costs/expenses with donations, contributions, and subsidies (R$ 2 million);
ü Increase of 7.1% in Financial Compensation for Water Resources Utilization (CFURH) (R$ 1 million) and increase of 4.0% in collection charges (R$ 1 million) and;
ü Increase of R$ 24 million in other expenses
Partially offset by:
ü reduction of 20.6% of legal and court expenses (R$ 17 million)
Partially offset by:
· Depreciation and Amortization, which represented an increase of 3.2% (R$ 9 million), are mainly explained by (i) the increase in the Generation segment (R$ 8 million), mainly CPFL Renovaveis due to the depreciation of the assets that went into operation between 4Q14 and 4Q15; (ii) increase in the Distribution business (R$ 7 million), (iii) increase in the Commercialization and Services Business segment (R$ 2 million), partially offset by (iv) reduction in the holding CPFL Energia in the “Intangible of concession amortization” (R$ 8 million).
4Q15 IFRS EBITDA reached R$ 1,005 million, a decrease of 25.1% (R$ 337 million). The adjusted EBITDA in 4Q15 totaled R$ 844 million, compared to R$ 914 million in 4Q14, a decrease of 7.7%.
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4Q15/2015 Results | March 21, 2016 |
EBITDA conciliation - IFRS x adjusted (R$ million) | |||
|
4Q15 |
4Q14 |
Var. |
EBITDA - IFRS (A) |
1,005 |
1,342 |
-25.1% |
(+) Proportional Consolidation of Generation (B) |
(86) |
(52) |
|
Conventional Generation |
95 |
49 |
|
CPFL Renováveis |
(180) |
(101) |
|
(+) Regulatory Assets and Liabilities (C)* |
- |
325 |
|
(+) Non-recurring effects (D) |
(76) |
(701) |
|
Sectoral Financial Assets & Liabilities |
- |
(831) |
|
GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) |
27 |
145 |
|
GSF renegotiation (net of premium risk) |
(134) |
- |
|
Insurance reimbursement - Bio Pedra TPP |
(8) |
- |
|
Impairment of assets |
39 |
- |
|
Agreement with equipment supplier delay in plant construction (CPFL Renováveis) |
- |
(15) |
|
Adjusted EBITDA (A + B + C + D) |
844 |
914 |
-7.7% |
*Regulatory assets and liabilities in the period
In 4Q15, net financial expense (IFRS) was of R$ 114 million, a decrease of 57.2% (R$ 153 million) compared to the net financial expense of R$ 268 million reported in 4Q14. The adjusted net financial expense was R$ 95 million, a decrease of 54.7% if compared to the same period of 2014 (R$ 115 million).
The items explaining these variations in adjusted Financial Result are as follows:
· Financial Revenues: increase of 111.4% (R$ 263 million), from R$ 237 million in 4Q14 to R$ 500 million in 4Q15, mainly due to the following factors:
(i) Restatement of concession’s financial asset (R$ 96 million), due to IGP-M variation, a higher asset base and the indexer replacement from IGP-M to IPCA;
(ii) Restatement of sectorial financial assets (R$ 59 million);
(iii) Restatement of tax credits (R$ 36 million);
(iv) Increase in the income from financial investments and monetary and exchange adjustments (R$ 36 million), due to the higher average cash balance (R$ 4.0 billion in 4Q15 versus R$ 3.6 billion in 4Q14) and higher average CDI interbank rate, from 11.72% in 4Q14 to 14.39% in 4Q15;
(v) Increase in arrears of interest and fines (R$ 25 million);
(vi) Increase in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers (R$ 25 million);
(vii) Restatement of the balance of tariff subsidies, as determined by ANEEL (R$ 11 million);
(viii) Other effects (R$ 18 million);
Partially offset by:
(ix) PIS and COFINS on financial revenues (R$ 32 million); and
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4Q15/2015 Results | March 21, 2016 |
(x) Currency variation in Itaipu invoices (R$ 11 million), offset by the sectorial financial assets and liabilities, which comprises the operating revenue.
· Financial Expenses: increase of 33.2% (R$ 148 million), from R$ 447 million in 4Q14 to R$ 595 million in 4Q15, mainly due to the following factors:
(i) Increase of debt charges and monetary and exchange variations (R$ 94 million), due to the higher average CDI interbank rate, from 11.72% in 4Q14 to 14.39% in 4Q15, and the debt stock;
(ii) Mark-to-market effect for financial operations under Law 4,131 (non-cash effect) (R$ 101 million);
(iii) Increase in the financial expenses with the Use of Public Asset (UBP) (R$ 11 million), due to the variation of the IGP-M, index used to update this item;
(iv) Other effects (R$ 4 million);
Partially offset by:
(v) Currency variation in Itaipu invoices (R$ 61 million), offset by the sectorial financial assets and liabilities, which comprises the operating revenue.
In 4Q15, net income (IFRS) was R$ 363 million, a decrease of 22.8% if compared to 4Q14. Adjusted net income totaled R$ 255 million, a decrease of 10.1% if compared to 4Q14.
Net Income conciliation - IFRS x adjusted (R$ million) | |||
|
4Q15 |
4Q14 |
Var. |
Net Income - IFRS (A) |
363 |
470 |
-22.8% |
(+) Proportional Consolidation of Generation (B) |
(51) |
39 |
|
Conventional Generation |
(11) |
8 |
|
CPFL Renováveis |
(40) |
32 |
|
(+) Regulatory Assets and Liabilities (C)* |
- |
219 |
|
(+) Non-recurring effects (D) |
(56) |
(444) |
|
Sectoral Financial Assets & Liabilities |
- |
(549) |
|
GSF and Energy Purchase (CPFL Geração and CPFL Renováveis) |
19 |
101 |
|
GSF renegotiation (net of premium risk) |
(93) |
- |
|
Insurance reimbursement - Bio Pedra TPP |
(8) |
- |
|
Impairment of assets |
26 |
- |
|
Non recurring effects - CPFL Renováveis |
- |
3 |
|
Adjusted Net Income (A + B + C + D) |
255 |
284 |
-10.1% |
*Regulatory assets and liabilities in the period
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4Q15/2015 Results | March 21, 2016 |
Notes: 1) Considering the proportional consolidation of CPFL Renováveis, Ceran, Baesa, Enercan, Foz do Chapecó and Epasa ; 2) For debt linked to foreign currency (27.1 % of total), swaps are contracted, which convert indexing for CDI; 3) PSI - Investment Support Program.
Net Debt and Leverage in IFRS
IFRS - R$ Thousands |
4Q15 |
4Q14 |
Var. |
Financial Debt (including hedge) |
(19,488,650) |
(18,555,137) |
5.0% |
(+) Available Funds |
5,682,802 |
4,357,455 |
30.4% |
(=) Net Debt |
(13,805,848) |
(14,197,682) |
-2.8% |
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4Q15/2015 Results | March 21, 2016 |
Notes:
1 This graphic consider MTM and expenses with funding and issuance.
(*) These graphics do not consider MTM and expenses with funding and issuance.
CPFL Energia has always adopted a solid and conservative financial policy. Thus, the Company has used since 2011, a prefunding strategy, in other words, forecasts the cash needs for the next 18-24 months and anticipates market access on more favorable terms of liquidity and cost. Thus, at the end of 2014, CPFL Energia, envisioning a more restrictive credit scenario in 2015, started working in 2016 prefunding.
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4Q15/2015 Results | March 21, 2016 |
The cash position at the end of 4Q15 has coverage ratio of 2.36x the amortizations of the next 12 months, enough to honor all amortization commitments until around the beginning of 2018. The average amortization term, calculated by this schedule, is 3.44 years.
Financial Debt - 4Q15 - Pro-Forma (R$ thousands) | |||||||||||||
|
BNDES |
Financial Institutions |
Other |
Foreign Currency |
Debentures |
|
Total |
| |||||
Segments |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Short Term |
Long Term |
Total |
|
|
|
|
|
|
||||||||
Holding (CPFL Energia) |
- |
- |
300,000 |
- |
- |
- |
638,655 |
- |
- |
- |
938,655 |
- |
938,655 |
Distribution |
316,322 |
1,287,815 |
26,786 |
460,318 |
4,230 |
9,745 |
997,839 |
5,074,852 |
- |
2,245,000 |
1,345,177 |
9,077,731 |
10,422,908 |
Commercialization and Services |
4,113 |
25,925 |
2,043 |
3,068 |
1,280 |
1,429 |
14,704 |
52,715 |
- |
228,000 |
22,141 |
311,137 |
333,278 |
Conventional Generation |
175,169 |
1,111,547 |
- |
617,520 |
10,164 |
71,147 |
- |
415,932 |
19,512 |
2,315,145 |
204,844 |
4,531,291 |
4,736,135 |
CPFL Renováveis |
141,174 |
1,473,054 |
- |
- |
41,470 |
347,240 |
- |
- |
236,459 |
852,787 |
419,103 |
2,673,082 |
3,092,185 |
Other |
3,876 |
55,546 |
7,901 |
27,763 |
- |
- |
- |
- |
- |
- |
11,777 |
83,308 |
95,086 |
|
|
|
|
|
|
|
|||||||
Debt (Principal) |
640,654 |
3,953,888 |
336,730 |
1,108,669 |
57,144 |
429,561 |
1,651,199 |
5,543,499 |
255,971 |
5,640,932 |
2,941,698 |
16,676,549 |
19,618,247 |
|
|
|
|
|
|
||||||||
Charges |
|
|
|
|
|
482,390 |
(189,333) |
293,056 | |||||
|
|
|
|
|
|
||||||||
Hedge |
|
|
|
|
|
(626,512) |
(1,618,055) |
(2,244,567) | |||||
|
|
|
|
|
|
||||||||
Financial Debt Including Hedge |
|
|
|
|
|
|
|
|
|
|
2,797,575 |
14,869,161 |
17,666,736 |
Percentage on total (%) |
|
|
|
|
|
|
|
|
|
|
15.8% |
84.2% |
100.0% |
Private Pension Fund (PPF) |
802 |
474,318 |
475,120 | ||||||||||
Financial Debt (Including Private Pension Fund) |
|
|
|
|
|
|
|
|
2,798,377 |
15,343,479 |
18,141,856 | ||
Percentage on total (%) |
|
|
|
|
|
|
|
|
|
|
15.4% |
84.6% |
100.0% |
Página 21 de 63
4Q15/2015 Results | March 21, 2016 |
Notas: 1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA; 2) For debt linked to foreign currency (35.4% of total), swaps are contracted, which convert the indexation to CDI; 3) PSI - Investment Support Program.
In 4Q15, Net Debt Pro-forma totaled R$ 12,213 million, an decrease of 6.3% compared to net debt position at the end of 4Q14 in the amount of R$ 13,038 million.
Pro forma (*) - R$ Thousands |
4Q15 |
4Q14 |
Var. |
Financial Debt (including hedge) 1 |
(17,666,736) |
(17,126,023) |
3.2% |
(+) Available Funds |
5,454,199 |
4,087,851 |
33.4% |
(=) Net Debt |
(12,212,537) |
(13,038,171) |
-6.3% |
EBITDA Proforma 2 |
3,584,206 |
3,735,784 |
-4.1% |
Net Debt / EBITDA |
3.41x |
3.49x |
0.08x |
Página 22 de 63
4Q15/2015 Results | March 21, 2016 |
Notas: 1) Considering proportional consolidation of CPFL Renováveis, CERAN, BAESA, ENERCAN, Foz do Chapecó and EPASA. 2) Adjusted EBITDA in the covenants criteria: adjusted according to equivalent participation of CPFL Energia in each of its subsidiaries, with the inclusion of regulatory assets and liabilities and the historical EBITDA of newly acquired projects.
In line with the criteria for calculation of financial covenants of loan agreements with financial institutions, net debt is adjusted according to the equivalent participation of CPFL Energia in each of the projects. Also, include in the calculation of adjusted EBITDA the effects of the CVA – "Account for the Compensation of the Variations of Parcel A" and the historic EBITDA of newly acquired projects. Considering that, adjusted net debt totaled R$ 12,213 million and adjusted EBITDA reached R$ 3,584 million, the adjusted Net Debt / adjusted EBITDA at the end of 4Q15 reached 3,41x.
In February 2016, Standard&Poor’s Ratings Agency downgraded again the Brazilian sovereign rating and outlook, impacting CPFL Energia and its subsidiaries. The automatic downgrade changed CPFL Energia rating for brAA- and maintained the negative outlook.
In March 2016, the Fitch’s Rating Agency changed CPFL Energia outlook perspective from stable to negative perspective and maintained the rating AA (bra).
Nevertheless, CPFL Energia has kept a solid cash balance, reduction in its leverage in covenant criteria and good debt profile.
The following table shows the evolution of CPFL Energia’s corporate ratings:
Investiments (IFRS - R$ Thousand) | ||||||
Segment |
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Distribution |
255,853 |
200,030 |
27.9% |
868,495 |
702,386 |
23.6% |
Generation - Conventional |
4,336 |
9,189 |
-52.8% |
6,910 |
14,419 |
-52.1% |
Generation - Renewable1 |
206,453 |
76,476 |
170.0% |
493,584 |
250,803 |
96.8% |
Commercialization |
1,213 |
1,011 |
20.0% |
2,432 |
3,531 |
-31.1% |
Services and Others2 |
28,553 |
21,372 |
33.6% |
56,375 |
90,729 |
-37.9% |
Total |
496,408 |
308,078 |
61.1% |
1,427,796 |
1,061,868 |
34.5% |
Transmission |
6,690 |
29,023 |
-76.9% |
37,469 |
56,846 |
-34.1% |
Special Obligations |
80,647 |
55,727 |
44.7% |
254,924 |
181,407 |
40.5% |
Notes:
1) The R$ 12 million difference in the year of 2015 between the numbers reported by CPFL Renováveis's Earnings Release is accounted in the line “Non- cash transactions and other information” from CPFL Renováveis ITR (Note 30);
2) Others – all type of investment that is not included on the segments listed above.
Página 23 de 63
4Q15/2015 Results | March 21, 2016 |
In 4Q15, R$ 496 million were invested in business maintenance and expansion, 61.1% higher than 4Q14. CPFL Energia’s investments totaled R$ 1.4 billion in 2015, which represents an increase of 34.5% YoY. In addition, we invested R$ 7 million in the quarter (R$ 37 million in 2015) in the construction of CPFL Transmissão’s transmission lines and, according to the requirements of IFRIC 12, it was recorded as “Financial Asset of Concession” in non-current assets. CPFL Energia also booked R$ 81 million in Special Obligations in the quarter (R$ 255 million in 2015) among other items financed by the consumer.
Listed below are some of the main investments made by CPFL Energia in 4Q15, in each segment:
(i) DisCos:
a. Strengthening and expansion the electric system;
b. Electricity system maintenance and improvements;
c. Operational infrastructure;
d. Upgrade of management and operational support systems;
e. Customer help services;
f. Research and development programs.
(ii) GenCos:
a. Campo dos Ventos II Wind Complex;
b. São Benedito Wind Complex;
c. Pedra Cheirosa Wind Complex;
d. Mata Velha SHPP.
In December 2015, the Board of Executive Officers' proposal for the 2016 Annual Budget and the 2017/2020 Multiannual Plan for CPFL Energia and its subsidiaries, which was previously discussed by the Budget and Corporate Finance Commission.
Página 24 de 63
4Q15/2015 Results | March 21, 2016 |
Notes:
(i) Constant currency;
(ii) Disregard investments in Special Obligations on Distribution segment (among other items financed by consumers);
(iii) IFRS – Considers 100% on CPFL Renováveis and Ceran; Pro forma – Considers proportional stakes in the generation projects.
The Company’s Bylaws require the distribution annually of at least 25% of net income adjusted according to law, as dividends to its shareholders. The proposal for allocation of net income from the fiscal year is shown below:
|
Thousands of R$ |
Net income of the fiscal year - Individual |
864,940 |
Results from previous years |
26,119 |
Prescribed dividend |
5,597 |
Net income base for allocation |
896,656 |
Legal reserve |
(43,247) |
Statutory reserve - concession financial asset |
(255,013) |
Statutory reserve - strengthening of working capital |
(392,972) |
Minimum mandatory dividend |
(205,423) |
Minimum Mandatory Dividend (25%)
The Board of Directors propose the payment of R$ 205 million in dividends to holders of common shares traded on the BM&FBovespa – Bolsa de Valores, Mercadorias e Futuros S.A. (BM&FBOVESPA). This proposed amount corresponds to R$ 0.206868475 per share, related to the year 2015.
Página 25 de 63
4Q15/2015 Results | March 21, 2016 |
Statutory Reserve – Strengthening of Working Capital
For this fiscal year, considering the current adverse economic scenario and the uncertainties regarding market projections for distributors due to energy efficiency campaigns and extraordinary tariff increases occurred during the year 2015, the Company’s Management proposes the allocation of R$ 393 million to the statutory reserve – strengthening of working capital.
Stock Dividend for Shareholders
To strengthen the Company’s capital structure, the Board of Executive Officers meeting held on March 7, 2016, recommended that the Board of Directors propose to the Shareholders Meeting the capitalization of the balance of the statutory reserve – strengthening of working capital, through the issue of new shares to shareholders. This proposal will be submitted for approval by the Extraordinary Shareholders Meeting called for April 29, 2016.
CPFL Energia, which has a current free float of 31.9% (up to December 31, 2015), is listed on both the BM&FBOVESPA (Novo Mercado) and the NYSE (ADR Level III), segments with the highest levels of corporate governance
BM&FBovespa |
NYSE | ||||||
Date |
CPFE3 (R$) |
IEE |
IBOV |
Date |
CPL (US$) |
DJBr20 |
Dow Jones |
31/12/2014 |
R$ 17.92 |
27,161 |
50,007 |
31/12/2014 |
R$ 13.57 |
20,181 |
17,823 |
30/09/2015 |
R$ 14.87 |
25,775 |
45,059 |
30/09/2015 |
R$ 7.50 |
12,159 |
16,285 |
31/12/2015 |
R$ 15.18 |
24,803 |
43,349 |
31/12/2015 |
R$ 7.42 |
11,301 |
17,425 |
QoQ |
2.1% |
-3.8% |
-3.8% |
QoQ |
-1.1% |
-7.1% |
7.0% |
YoY |
-15.3% |
-8.7% |
-13.3% |
YoY |
-45.3% |
-44.0% |
-2.2% |
On December 31, the shares price closed at R$ 15.18 on BM&FBovespa and $ 7.42 on NYSE. In 4Q15, the shares’ prices valued 2.1% and devalued -1.1%, respectively. Year over year, the shares devalued 15.3% on BM&FBovespa and 45.3% on NYSE.
The daily trading volume in 4Q15 averaged R$ 33.2 million, of which R$ 22.1 million on the BM&FBOVESPA and R$ 11.1 million on the NYSE, 6.1% down compared to 4Q14. The number of trades on the BM&FBOVESPA increased by 11.6%, rising from a daily average of 6,110, in 4Q14, to 6,820 in 4Q15.
Página 26 de 63
4Q15/2015 Results | March 21, 2016 |
4Q15/2015 Results | March 21, 2016 |
The corporate governance model adopted by CPFL Energia ("CPFL" or "Company") and its subsidiaries is based on the principles of transparency, fairness, accountability and corporate responsibility.
In 2015, CPFL marked 11 years since being listed on the BM&FBovespa and the New York Stock Exchange (“NYSE”). With more than 100 years of history in Brazil, the Company’s shares are listed on the Novo Mercado Special Listing Segment of the BM&FBovespa with Level III ADRs, a special segment for companies that comply with corporate governance best practices. All CPFL shares are common shares, entitling all shareholders the right to vote with 100% Tag Along rights guaranteed in case of sale of shareholding control.
CPFL’s Management is composed of the Board of Directors (Board), its decision-making authority, and the Board of Executive Officers, its executive body. The Board is responsible for defining the strategic business direction of the holding company and subsidiaries, and is composed of 7 external members, one of whom an Independent Member, whose term of office is 1 year and who are eligible for reelection.
The Bylaws of the Board establishes the procedures for evaluating the directors, under the leadership of the Chairman, their main duties and rights.
The Board set up three advisory committees (Risk Management Processes, People Management and Related Parties), which support the Board in its decisions and monitor relevant and strategic themes, such as people and risk management, sustainability and the surveillance of internal audits, analysis of transactions with Parties Related to controlling shareholders and handling of incidents recorded through complaint hotlines and ethical conduct channels.
To ensure that best practices permeate all activities of the Board and its relations with the Company while the Board members are focused on their decision-making functions, in 2006 the Company created the Board of Directors Advisory Council, which reports directly and solely to the Chairman of the Board. In 2015, the name was changed from Board of Directors Advisory Council to Corporate Governance Advisory Council.
This Advisory Council acts as the guardian of best practices to ensure compliance with Governance Guidelines; speed of communication between the Company and its Board members; quality and timeliness of information; integration and evaluation of members of the Board of Directors and the Audit Board; constant improvement of governance processes and institutional relations with government authorities and entities.
The composition of Executive board, in line with governance guidelines, was changed on May 2015. The change in Company’s Bylaws, which were approved at the General Shareholders Meeting held on April 29, 2015, created a new vice President position subordinated to the CEO, who passes 5 (five) to 6 (six) Executive vice Presidents, standing in line with our succession program. The mandates of the Executive vice Presidents endures two years, with a re election possibility, besides they sit on the Boards of the subsidiaries. Therefore, the changes in CPFL Energia aims to create the bases required to consolidate as the leader of Brazilian power Market, always seeking the efficient management of its assets and sustainable opportunities to create value for its stakeholders.
CPFL has a permanent Audit Board, made up of 5 members, that also exercises the duties of the Audit Committee, in line with Sarbanes-Oxley law (SOX) rulings applicable to foreign companies listed on U.S. stock exchanges.
Página 28 de 63
4Q15/2015 Results | March 21, 2016 |
The guidelines and documents on corporate governance are available at the Investor Relations website http://www.cpfl.com.br/ri.
CPFL Energia is a holding company, whose results depend directly on those of its subsidiaries.
Notes:
1) Controlling shareholders;
2) Includes the 0,5% stake of Caixa de Previdência dos Funcionários do Banco do Brasil;
3) Includes the 0.2% stake of Petros pension fund;
4) Bounded shares, according to the Shareholders Agreement;
5) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas.
Página 29 de 63
4Q15/2015 Results | March 21, 2016 |
Consolidated Income Statement - Distribution (Pro-forma - R$ Thousands) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue (IFRS)(1) |
7,233,557 |
5,354,090 |
35.1% |
28,865,198 |
17,893,300 |
61.3% |
Adjusted Gross Operating Revenue(1) |
7,233,557 |
4,800,663 |
50.7% |
28,865,198 |
16,990,564 |
69.9% |
Net Operating Revenue (IFRS)(1) |
3,541,252 |
3,912,158 |
-9.5% |
15,550,533 |
12,787,990 |
21.6% |
Adjusted Net Operating Revenue(1) |
3,541,252 |
3,406,220 |
4.0% |
15,580,533 |
12,010,838 |
29.7% |
Cost of Electric Power |
(2,684,554) |
(2,457,560) |
9.2% |
(11,934,217) |
(8,998,898) |
32.6% |
Operating Costs & Expenses |
(909,038) |
(826,821) |
9.9% |
(3,357,432) |
(2,948,656) |
13.9% |
EBIT |
221,019 |
896,955 |
-75.4% |
1,268,068 |
1,717,844 |
-26.2% |
EBITDA (IFRS)(2) |
345,451 |
1,014,395 |
-65.9% |
1,750,485 |
2,180,272 |
-19.7% |
Adjusted EBITDA(3) |
345,451 |
508,457 |
-32.1% |
1,830,297 |
1,984,873 |
-7.8% |
Financial Income (Expense) |
110,362 |
(13,598) |
- |
(144,080) |
(308,623) |
-53.3% |
Income Before Taxes |
331,382 |
883,357 |
-62.5% |
1,123,988 |
1,409,222 |
-20.2% |
Net Income (IFRS) |
197,886 |
630,385 |
-68.6% |
709,355 |
947,958 |
-25.2% |
Adjusted Net Income(4) |
197,886 |
300,300 |
-34.1% |
762,031 |
866,748 |
-12.1% |
Notes:
(1) Excludes Construction Revenue;
(2) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12;
(3) Adjusted EBITDA considers, besides the items mentioned above, the sectoral financial assets and liabilities (previously called regulatory assets and liabilities) and excludes the non-recurring effects;
(4) Adjusted Net Income considers the sectoral financial assets and liabilities (previously called regulatory assets and liabilities) and excludes the non-recurring effects;
(5) The distributors’ financial performance tables are attached to this report in item 13.12.
On November 25, 2014, through Dispatch no. 4,621, Aneel approved the amendment to concession agreements of distribution companies, in order to include a specific clause guaranteeing that the balance remaining of any insufficient payment or reimbursement of tariff due to termination of the concession, for any reason, will be indemnified.
After this change, the Brazilian Securities and Exchange Commission (CVM) approved, in December 2014, through Deliberation no. 732, the recognition of assets and liabilities that were previously called “regulatory assets and liabilities” in the financial statements of the electric energy distributors, which are now called “sectoral financial assets and liabilities”.
In 4Q15, the total sectoral financial assets and liabilities was accounted in the amount of R$ 195 million (R$ 177 million net of PIS and COFINS), compared to the amount of R$ 911 million in 4Q14, a reduction of 78.6% (R$ 716 million). On December 31, 2015, the balance of these sectoral financial assets and liabilities was of R$ 1,954 million (R$ 1,682 million, excluding the amount related to the tariff flags not approved by Aneel and special obligations recorded as the methodology of the 4th Cycle of Tariff Review), compared to a balance of R$ 2,302 million (R$ 1,907 million, excluding the amount related to the tariff flags not approved by Aneel) on September 30, 2015.
Excluding the revenue from building the infrastructure of the concession (which does not affect the results, because of the related cost, in the same amount), gross operating revenue (IFRS) amounted to 7,234 million in 4Q15, an increase of 35.1% (R$ 1,879 million), due to the following factors:
Página 30 de 63
4Q15/2015 Results | March 21, 2016 |
· Increase of 51.7% (R$ 2,278 million) in the revenue with energy sale (captive + TUSD), due to the positive average tariff adjustment in the distribution companies for the period between 4Q14 and 4Q15 (due to the annual tariff readjustments, application of tariff flags and adoption of Extraordinary Tariff Review as of March 2015), an effect that was enough to offset the reduction of 5.3% in the sales volume within the concession area;
· Increase of R$ 33 million in the resources from the CDE (tariff subsidies);
· Increase of R$ 111 million in Short-term Electric Energy;
· Increase of R$ 174 million in Other Revenues and Income;
Partially offset by:
· Reduction of R$ 716 million in the Sectoral Financial Assets and Liabilities, from R$ 911 million in 4Q14, when it was recorded all the balance of regulatory assets, to R$ 195 million in 4Q15.
Excluding the sectoral financial assets and liabilities related to prior periods (R$ 553 million) in 4Q14, adjusted gross operating revenue registered an increase of 50.7% (R$ 2,433 million) in 4Q15.
Deductions from the gross operating revenue (IFRS) were R$ 3,692 million in 4Q15, representing an increase of 156.1% (R$ 2,250 million), due to the following increases:
· of 50.9% in ICMS tax (R$ 426 million);
· of 40.9% in PIS and COFINS taxes (R$ 195 million), due to the increase in revenues in the period and the change in PIS and COFINS credits, due to a lower credit taken in 4Q15, in accordance with Law no. 12,973/14, which amended the rules of credit taken as of 2015;
· of 1568.6% in the CDE sector charge (R$ 1,156 million), due to the adoption of new shares of CDE;
· of 47.8% in the R&D and Energy Efficiency Program (R$ 13 million);
· accounting of other consumer charges (Emergency Charges - ECE/EAEE), referring to the tariff flags approved by the CCEE (R$ 459 million);
· R$ 4 million from Aneel’s inspection fee, which in 2014 was accounted in Other Expenses;
Partially offset by the reduction:
· of 14.5% in the PROINFA (R$ 4 million).
Adjusted deductions from the gross operating revenue registered an increase of 164.8% (R$ 2,298 million) in 4Q15. Besides what is presented above, the upturn in adjusted deductions from the gross operating revenue was also caused by R$ 47 million of sectoral financial assets and liabilities, due to a net receivable of prior periods recorded in 4Q14.
Excluding the revenue from building the infrastructure of the concession (which does not affect the results because of the related cost, in the same amount), net operating revenue (IFRS) reached R$ 3,541 million in 4Q15, representing a reduction of 9.5% (R$ 371 million). Adjusted net operating revenue registered an increase of 4.0% (R$ 135 million) in 4Q15.
The cost of electric energy (IFRS), comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 2,685 million in 4Q15, representing an increase of 9.2% (R$ 227 million):
· The cost of electric power purchased for resale (IFRS) was R$ 2,386 million in 4Q15, representing a reduction of 0.9% (R$ 22 million), due to the following factors:
Página 31 de 63
4Q15/2015 Results | March 21, 2016 |
(i) Reduction of R$ 635 million in the cost of energy purchased in the short term, from a cost of R$ 623 million in 4Q14 to a revenue of R$ 12 million in 4Q15, mainly due to the reductions of 87.9% in the volume of purchased energy (672 GWh) and of average PLD (from R$ 727.54/MWh in 4Q14 to R$ 177.09/MWh in 4Q15, in the Southeast/Midwest submarket, and from R$ 712.43/MWh in 4Q14 to R$ 166.85/MWh in 4Q15, in the South submarket);
(ii) Reduction of 0.6% (R$ 0.4 million) in the PROINFA cost, mainly due to the 1.6% reduction in the average purchase price (from R$ 222.33/MWh in 4Q14 to R$ 218.79/MWh in 4Q15), partially offset by the increase of 1.1% (3 GWh) in the volume of purchased energy;
Partially offset by:
(iii) Increase of 120.9% (R$ 442 million) in the cost of energy from Itaipu, mainly due to the 124.4% increase in the average purchase price (from R$ 138.79/MWh in 4Q14 to R$ 311.50/MWh in 4Q15), partially offset by the reduction of 1.6% (42 GWh) in the volume of purchased energy;
(iv) Accounting of ACR account resources in 4Q14, in the amount of R$ 161 million, to cover the involuntary exposure and thermal dispatch;
(v) Increase of 0.5% (R$ 9 million) in the cost of energy purchased in the regulated environment and bilateral contracts, mainly due to the increase of 9.7% (870 GWh) in the volume of purchased energy, partially offset by the reduction of 8.4% in the average purchase price (from R$ 196.69/MWh in 4Q14 to R$ 180.17/MWh in 4Q15);
(vi) Reduction of 0.9% (R$ 2 million) in PIS and COFINS tax credits (cost reducer), generated from the energy purchase.
· Charges for the use of the transmission and distribution system (IFRS) reached R$ 298 million in 4Q15, a 505.4% (R$ 249 million) increase, due to the following factors:
(i) Increase in the system service usage charges – ESS (R$ 323 million), from a revenue of R$ 175 million in 4Q14 to a cost of R$ 148 million in 4Q15, due to the reduction in the PLD;
(ii) Increase of R$ 10 million in the connection charges, charges for the use of the distribution system and the Itaipu transmission charges;
Partially offset by:
(iii) Accounting of the energy reserve charges – EER in 4Q15, in the amount of R$ 41 million (revenue in 4Q15, not observed in 4Q14);
(iv) Reduction of 8.6% (R$ 18 million) in the basic network charges;
(v) Increase of 505.4% (R$ 25 million) in PIS and COFINS tax credits (cost reducer), generated from the charges.
Operating costs and expenses (IFRS) were R$ 909 million in 4Q15 compared to R$ 827 million in 4Q14, an increase of 9.9% (R$ 82 million), due to the following factors:
· Increase of 6.0% (R$ 7 million) in the Depreciation and Amortization item;
· Increase of 1.6% (R$ 4 million) in the cost of building the infrastructure of the concession (which does not affect the results because of the related revenue, in the same amount). This item, which reached R$ 273 million in 4Q15, has its counterpart in the “operating revenue”;
· PMSO (IFRS) reached R$ 500 million in 4Q15, compared to R$ 428 million in 4Q14, registering an increase of 16.8% (R$ 72 million), due to the following factors:
Página 32 de 63
4Q15/2015 Results | March 21, 2016 |
(i) Personnel expenses, which registered an increase of 4.8% (R$ 8 million), mainly due to the effects of the Collective Bargaining Agreement;
(ii) Material expenses, which registered an increase of 14.4% (R$ 3 million);
(iii) Outsourced services expenses, which registered an increase of 6.8% (R$ 10 million), mainly due to the increases in expenses with the maintenance of the power grid (R$ 4 million), bill delivery and collection (R$ 2 million), meter reading and use (R$ 2 million), collection actions (R$ 4 million) and other outsourced services (R$ 4 million), partially offset by the reduction in expenses with auditing and consulting (R$ 6 million);
(iv) Other operating costs/expenses, which registered an increase of 47.8% (R$ 52 million), mainly due to the following factors:
ü Variation of R$ 15 million in the disposal, decommissioning and others non-current assets, from a gain of R$ 14 million in 4Q14 to a loss of R$ 1 million in 4Q15;
ü Increase of 64.6% (R$ 12 million) in provision for doubtful accounts;
ü Increase of R$ 12 million in expenses related to the reclassification of operating fines from financial expenses to operating expenses;
ü Variation of R$ 10 million in donations, contributions and subsidies, from a revenue of R$ 7 million in 4Q14 to a cost of R$ 3 million in 4Q15;
ü Increase of R$ 21 million in other expenses;
Partially offset by:
ü Reduction of 21.4% (R$ 18 million) in legal, judicial, indemnities and penalties expenses;
Partially offset by:
· Reduction of 7.9% (R$ 1 million) in the Private Pension Fund item;
Reported PMSO(1) (R$ million) | ||||
|
4Q15 |
4Q14 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(167.1) |
(159.5) |
(7.6) |
4.8% |
Material |
(24.6) |
(21.5) |
(3.1) |
14.4% |
Outsourced Services |
(148.4) |
(138.9) |
(9.5) |
6.8% |
Other Operating Costs/Expenses |
(160.0) |
(108.3) |
(51.7) |
47.8% |
Legal, judicial and indemnities expenses |
(30.8) |
(18.7) |
(12.1) |
64.6% |
Allowance for doubtful accounts |
(65.0) |
(82.7) |
17.7 |
-21.4% |
Others |
(64.2) |
(6.9) |
(57.4) |
835.6% |
Total PMSO |
(500.2) |
(428.2) |
(72.0) |
16.8% |
Note: (1) Reported PMSO (IFRS) equivalent to Adjusted PMSO.
Página 33 de 63
4Q15/2015 Results | March 21, 2016 |
EBITDA (IFRS) totaled R$ 345 million in 4Q15, registering a reduction of 65.9% (R$ 669 million).
Excluding the sectoral financial assets and liabilities related to prior periods (R$ 506 million) in 4Q14, the Adjusted EBITDA had a reduction of 32.1% (R$ 163 million).
EBITDA Conciliation - IFRS x Adjusted (R$ million) | |||
|
4Q15 |
4Q14 |
Var. |
EBITDA - IFRS (A) |
345 |
1,014 |
-65.9% |
(+) Sectoral Financial Assets and Liabilities (in 4Q) (B) |
- |
325 |
- |
(+) Sectoral Financial Assets and Liabilities (C) |
- |
(831) |
- |
Adjusted EBITDA (A + B + C) |
345 |
508 |
-32.1% |
In 4Q15, the net financial result (IFRS) was a net financial revenue of R$ 110 million, compared to a net financial expense of R$ 14 million in 4Q14, registering a variation of R$ 124 million. The 4Q15 adjusted net financial result was also a net financial revenue of R$ 110 million, compared to a net financial expense of R$ 8 million in 4Q14, registering a variation of R$ 118 million.
The items explaining these changes are as follows:
· Financial Revenue (IFRS): increase of 147.7% (R$ 244 million), from R$ 165 million in 4Q14 to R$ 409 million in 4Q15. Adjusted Financial Revenue: increase of 139.3% (R$ 238 million), from R$ 171 million in 4Q14 to R$ 409 million in 4Q15, mainly due to the following factors:
(i) Increase of R$ 96 million in concession’s financial asset, from a expense of R$ 56 million in 4Q14 to a revenue of R$ 152 million in 4Q15, due to the IGP-M variation, a higher asset base and the change in the index from IGP-M to IPCA;
(ii) Increase of R$ 59 million in sectoral financial assets updates;
(iii) Increase of R$ 37 million in fiscal credits update;
(iv) Increase of R$ 25 million in revenues from fines, interest and monetary adjustment relating to installment payments made by consumers;
(v) Increase of R$ 24 million in additions and late payment fines, due to the increase in the tariff;
(vi) Increase of 61.5% (R$ 22 million) in the income from financial investments, due to the increases in the average balance of investments and in the average CDI interbank rate;
(vii) Increase of R$ 11 million in the update of the balance of tariff subsidies, as determined by ANEEL;
(viii) Increase of 31.4% (R$ 5 million) in judicial deposits updates;
Partially offset by:
(ix) PIS and COFINS over financial income (R$ 27 million);
(x) Effect of the exchange variation in Itaipu’s invoices (R$ 11 million), offset by the sectorial financial assets and liabilities, which comprises the operating revenue;
(xi) Reduction of R$ 5 million in other financial revenues.
Página 34 de 63
4Q15/2015 Results | March 21, 2016 |
· Financial Expense (IFRS): increase of 67.0% (R$ 120 million), from R$ 179 million in 4Q14 to R$ 298 million in 4Q15. Adjusted Financial Expense: variation identical to the IFRS, mainly due to the following factors:
(i) Mark-to-market negative effect in 4Q15 for financial operations under Law 4,131 - non-cash effect (R$ 97 million);
(ii) Increase of 23.3% (R$ 32 million) in debt charges, mainly due to the increases in the average cost of debt and in the stock of debt;
(iii) Increase of 41.1% (R$ 26 million) in the monetary and foreign exchange updates;
(iv) Increase of 94.3% (R$ 26 million) in other financial expenses;
Partially offset by:
(v) Positive effect of the exchange variation in Itaipu’s invoices (R$ 61 million), offset by the sectorial financial assets and liabilities, which comprises the operating revenue.
Net Income (IFRS) in 4Q15 was R$ 198 million, registering a reduction of 68.6% (R$ 432 million).
Excluding the sectoral financial assets and liabilities related to prior periods (R$ 330 million) in 4Q14, the Adjusted Net Income had a reduction of 34.1% (R$ 102 million).
Net Income Conciliation - IFRS x Adjusted (R$ million) | |||
|
4Q15 |
4Q14 |
Var. |
Net Income - IFRS (A) |
198 |
630 |
-68.6% |
(+) Sectoral Financial Assets and Liabilities (in 4Q) (B) |
- |
219 |
- |
(+) Sectoral Financial Assets and Liabilities (C) |
- |
(549) |
- |
Adjusted Net Income (A + B + C) |
198 |
300 |
-34.1% |
Tariff Adjustments Schedule | |
Disco |
Date |
CPFL Santa Cruz |
March 22nd* |
CPFL Leste Paulista |
March 22nd* |
CPFL Jaguari |
March 22nd* |
CPFL Sul Paulista |
March 22nd* |
CPFL Mococa |
March 22nd* |
CPFL Paulista |
April 8th |
RGE |
June 19th |
CPFL Piratininga |
October 23rd |
* The Public Hearing 038/2015, placed by ANEEL (Brazilian Regulatory Agency), proposed a change in the current month review from February 6 to March 22.
Página 35 de 63
4Q15/2015 Results | March 21, 2016 |
RGE
Aneel Ratifying Resolution No. 1,896 of June 16, 2015 has readjusted electric energy tariffs of RGE by 33.48%, being 24.99% related to the Tariff Readjustment and 8.50% as financial components outside the Tariff Readjustment. This Tariff Reajustment replaces the ETR, which corresponds to an average effect of -3.76 % on consumer billings. The impact of the Parcel A (Energy, Transmission Charges and Sector Charges) in the readjustment was of 24.13% and of the Parcel B was of 0.86%. The end of bilateral contracts in 2014 and the rising of the energy purchase price in 18th adjustment auction, that had less impact than considered in ETR, drove the negative impact on the billings in captive consumers. The new tariffs came into force on June 19, 2015.
CPFL Paulista
Aneel Ratifying Resolution No. 1,871 of April 07, 2015 readjusted electric energy tariffs of CPFL Paulista by 41.45%, being 37.31% related to the Economic Adjustment and 4.14% as financial components outside the Tariff Readjustment. This Tariff Reajustment replaces the ETR, which corresponds to an average effect of 4.67% on consumer billings. The impact of the Parcel A (Energy, Transmission Charges and Sector Charges) in the readjustment was of 36.85% and of the Parcel B was of 0.46%. The calculation took into account the change in the Extraordinary Tariff Review occured in February 2015. The new tariffs came into force on April 08, 2015.
CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa
On February 03, 2015, Aneel approved the indexes of Annual Tariff Adjustments 2015 of the distributors CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista and CPFL Mococa distributors, as shown in the table below:
Annual Tariff Adjustment (RTA) |
CPFL Mococa |
CPFL Sul Paulista |
CPFL Jaguari |
CPFL Leste Paulista |
CPFL Santa Cruz |
Ratifying Resolution |
1,849 |
1,851 |
1,853 |
1,852 |
1,850 |
Economic Adjustment |
28.9% |
30.2% |
40.1% |
28.8% |
22.0% |
Financial components |
-5.6% |
-5.4% |
-1.6% |
-8.0% |
12.7% |
Tariff adjustment |
23.3% |
24.9% |
38.5% |
20.8% |
34.7% |
Average effect |
29.2% |
28.4% |
45.7% |
24.9% |
28.0% |
The new tariffs came into force on February 03, 2015.
On February 27, ANEEL approved, through Resolution No. 1,858 / 2015, the Extraordinary Tariff Review - ETR of electricity distributors contended that such revision, among them the distributors CPFL Group. This ETR was necessary to restore the economic and financial balance of these concessionaries to meet the following facts: (i) the dollar rate to R$ 2.80/US$ and the tariff increase, which is utilized to honor the power purchase contracts from Itaipu HPP in 2015; (ii) increase in power purchase cost of the 2015 Adjustment Auction and 2014 Existing Energy Auction; (iii) significant increase in the CDE quota in 2015; and (iv) recalculation of research and development (R&D) charge. For the distributors CPFL Santa Cruz, CPFL Jaguari, CPFL Mococa, CPFL Leste Paulista e CPFL Sul Paulista, ETR was needed to reflect the new CDE quota in 2015, to suit the dollar rate to pay for the energy purchased from Itaipu and to exclude the financial component from the prediction of exposure/overcontracting, because the other items had already been considered in the Annual Tariff Adjustment (RTA), in February 3, 2015. The new tariffs came into force on March 02, 2015.
Página 36 de 63
4Q15/2015 Results | March 21, 2016 |
The extraordinary tariff adjustments are shown, by distributor, in the following table:
Extraordinary Tariff Review (ETR) |
RGE |
CPFL Paulista |
CPFL Mococa |
CPFL Sul Paulista |
CPFL Jaguari |
CPFL Leste Paulista |
CPFL Santa Cruz |
CPFL Piratininga |
Energy |
17.1% |
7.7% |
1.2% |
0.8% |
2.6% |
1.7% |
-4.1% |
3.3% |
Charges |
18.4% |
24.0% |
15.0% |
20.5% |
20.2% |
17.4% |
13.2% |
26.0% |
Average Effect |
37.2% |
32.3% |
16.6% |
22.0% |
23.0% |
19.5% |
10.0% |
29.8% |
On April 07, ANEEL changed, through Resolution No. 1,870 / 2015, the Extraordinary Tariff Review - ETR of the distributors CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari, CPFL Mococa, CPFL Santa Cruz. This correction was necessary to change the value of the monthly quotas of CDE – energy related to ACR, intended for repayment of loans contracted by CCEE in the management of ACR account. The rates resulting from this rectification entered into force on April 8, 2015.
The effect of the restatement of extraordinary tariff revisions in relation to the original ETR approved are shown, by distributor, in the following table:
Extraordinary Tariff |
CPFL |
CPFL Sul |
CPFL |
CPFL Leste |
CPFL Santa |
Average Effect |
-4.1% |
-4.0% |
-5.0% |
-4.2% |
-4.6% |
Tariff Review | |||
Distributor |
Periodicity |
Next Review |
Cycle |
CPFL Santa Cruz |
Every 5 years |
March 2016* |
4th PTRC |
CPF Leste Paulista |
Every 5 years |
March 2016* |
4th PTRC |
CPFL Jaguari |
Every 5 years |
March 2016* |
4th PTRC |
CPFL Sul Paulista |
Every 5 years |
March 2016* |
4th PTRC |
CPFL Mococa |
Every 5 years |
March 2016* |
4th PTRC |
CPFL Paulista |
Every 5 years |
April 2018 |
4th PTRC |
RGE |
Every 5 years |
June 2018 |
4th PTRC |
CPFL Piratininga |
Every 5 years |
October 2020 |
5th PTRC |
* The Public Hearing 038/2015, placed by Aneel, proposed a change in the current month review from February 6 to March 22.
On October, the Regulatory Agency (ANEEL) ended the tariff review process of CPFL Piratininga. The change in methodology impacts positively Parcel B. The key factors of the tariff review are the addition of special obligations reward, the WACC increase from 7.50% to 8.09% and the increase of the net RAB (Regulatory Asset Base). Thus, the Parcel B lifted 5.31% when compared to the old tariff (from R$ 717 Million to R$ 755 Million). Regarding accumulated Regulatory Assets and Liabilities (CVA), ANEEL authorized R$ 475 Million to be passed through, to the tariffs In comparison with the Extraordinary Tariff Review (February, 2015), the averaged effect for consumer billings will be 21.11%, which represents 8.10% of Parcel A, 1.36% of Parcel B and 11.65% of financial components. The impact on high voltage consumers billings will be 16.60%. On the other hand, the impact on low voltage consumers billings will be 24.81%.
Página 37 de 63
4Q15/2015 Results | March 21, 2016 |
Find below the key topics about the result of CPFL Piratininga 4th PTRC:
4th Periodic Tariff Review Cycle - CPFL Piratininga | |
Description |
Value (R$ Million) |
Gross Regulatory Asset Base (A) |
3,020 |
Depreciation Rate (B) |
3.65% |
Depreciation Quota (C = A x B) |
110 |
Net Regulatory Asset Base (D) |
1,906 |
Pre-tax WACC (E) |
12.26% |
Cost of Capital (F = D x E) |
234 |
Special Obligations (G) |
10 |
Regulatory EBITDA (H = C + E + G) |
354 |
Regulatory OPEX (I) |
447 |
Parcel B (J = H + I) |
801 |
Other Revenues (K) |
36 |
Adjusted Parcel B (L = J - K) |
755 |
Parcel A (M) |
3,649 |
Required Revenue (N = L + M) |
4,404 |
Notes:
1) Management, Operation and Maintenance costs;
2) Annual cost of facilities and properties.
Below we are presenting the results achieved by the distribution companies with regard to the main indicators that measure the quality and reliability of their supply of electric energy. The SAIDI (System Average Interruption Duration Index) measures the average duration, in hours, of interruption per consumer per year. The SAIFI (System Average Interruption Frequency Index) measures the average number of interruptions per consumer per year.
SAIDI and SAIFI Indexes* | ||||||||||||
Distributor |
SAIDI (hours) |
SAIFI (interruptions) | ||||||||||
2011 |
2012 |
2013 |
2014 |
2015 |
ANEEL |
2011 |
2012 |
2013 |
2014 |
2015 |
ANEEL | |
CPFL Paulista |
6.77 |
7.48 |
7.14 |
6.93 |
7.76 |
8.07 |
5.36 |
5.37 |
4.73 |
4.89 |
4.89 |
7.27 |
CPFL Piratininga1 |
6.44 |
5.66 |
7.44 |
6.98 |
7.24 |
7.36 |
4.87 |
4.24 |
4.58 |
4.19 |
4.31 |
6.47 |
RGE |
15.19 |
14.61 |
17.35 |
18.77 |
15.98 |
13.66 |
9.44 |
8.94 |
9.04 |
9.14 |
8.33 |
10.80 |
CPFL Santa Cruz |
8.43 |
5.28 |
6.97 |
6.74 |
8.46 |
10.19 |
8.15 |
5.83 |
6.82 |
5.29 |
6.34 |
10.07 |
CPFL Jaguari |
7.00 |
4.49 |
5.92 |
5.41 |
6.93 |
8.50 |
5.73 |
4.66 |
5.43 |
4.32 |
4.61 |
8.00 |
CPFL Mococa |
5.95 |
5.83 |
4.86 |
6.88 |
7.04 |
10.59 |
5.24 |
5.69 |
4.93 |
7.31 |
5.92 |
9.79 |
CPFL Leste Paulista |
9.66 |
8.26 |
7.58 |
8.48 |
7.92 |
10.58 |
6.17 |
6.57 |
6.33 |
6.30 |
5.67 |
9.29 |
CPFL Sul Paulista |
9.06 |
10.80 |
9.08 |
9.69 |
11.51 |
10.40 |
5.70 |
9.01 |
6.71 |
7.03 |
9.47 |
9.20 |
*Annualized
Note:
1) Aneel (Regulatory Agency) established in 4th PTRC SAIDI and SAIFI of 7.35 and 6.47 respectively for 2016.
Página 38 de 63
4Q15/2015 Results | March 21, 2016 |
Find below the losses of the distributors during the quarter and the overall performance during the years:
12-month Accumulated Losses) |
Technical Losses |
Non-Technical Losses |
Total | ||||||||||||
mar/15 |
jun/15 |
sep/15 |
dec/15 |
ANEEL |
mar/15 |
jun/15 |
sep/15 |
dec/15 |
ANEEL |
mar/15 |
jun/15 |
sep/15 |
dec/15 |
ANEEL | |
CPFL Paulista |
6.10% |
6.22% |
6.32% |
6.32% |
6.32% |
2.24% |
2.03% |
2.30% |
2.33% |
1.96% |
8.34% |
8.25% |
8.61% |
8.65% |
8.28% |
CPFL Piratininga* |
4.16% |
4.17% |
4.19% |
4.51% |
4.79% |
2.12% |
1.99% |
2.10% |
2.41% |
1.51% |
6.28% |
6.16% |
6.29% |
6.92% |
6.30% |
RGE |
7.85% |
7.85% |
7.87% |
7.75% |
7.28% |
1.79% |
1.27% |
1.53% |
1.57% |
1.87% |
9.64% |
9.12% |
9.39% |
9.32% |
9.15% |
CPFL Santa Cruz |
7.64% |
7.91% |
8.11% |
8.81% |
7.93% |
1.25% |
0.54% |
1.30% |
0.05% |
0.55% |
8.89% |
8.45% |
9.41% |
8.86% |
8.48% |
CPFL Leste Paulista |
8.50% |
8.56% |
8.40% |
8.22% |
8.10% |
2.60% |
2.70% |
3.14% |
3.54% |
1.44% |
11.09% |
11.26% |
11.54% |
11.76% |
9.54% |
CPFL Sul Paulista |
6.90% |
6.98% |
7.14% |
7.29% |
6.70% |
0.91% |
0.77% |
0.32% |
0.35% |
0.35% |
7.81% |
7.75% |
7.46% |
7.64% |
7.05% |
CPFL Jaguari |
3.70% |
3.73% |
3.64% |
3.54% |
3.14% |
0.57% |
0.53% |
0.58% |
0.84% |
0.41% |
4.26% |
4.25% |
4.22% |
4.38% |
3.55% |
CPFL Mococa |
7.72% |
7.85% |
7.70% |
7.71% |
9.49% |
1.38% |
1.23% |
1.79% |
1.87% |
0.00% |
9.10% |
9.08% |
9.49% |
9.58% |
9.49% |
* According to the 4th PTRC instructions by Regulatory Agency (ANEEL), the CPFL Piratininga's new losses indexes are: Technical Losses 5.5%; Non-Technincal Losses: 1.4%; Total Losses: 6.9%
Moreover, find below losses in low voltage market and how was the performance during the quarters:
12-month Accumulated Losses - LV |
Non-Technical Losses - LV | ||||
mar/15 |
jun/15 |
sep/15 |
dec/15 |
ANEEL | |
CPFL Paulista |
5.61% |
5.28% |
4.78% |
5.40% |
4.61% |
CPFL Piratininga |
6.43% |
6.35% |
5.92% |
6.22% |
3.90% |
RGE |
3.49% |
4.52% |
3.16% |
3.80% |
4.41% |
CPFL Santa Cruz |
0.36% |
2.39% |
1.03% |
2.53% |
1.06% |
CPFL Leste Paulista |
4.92% |
4.49% |
4.68% |
5.49% |
2.46% |
CPFL Sul Paulista |
1.20% |
2.38% |
2.04% |
0.85% |
0.92% |
CPFL Jaguari |
0.86% |
2.25% |
2.07% |
2.30% |
1.64% |
CPFL Mococa |
3.31% |
2.40% |
2.13% |
3.10% |
0.00% |
* According to the 4th PTRC instructions by Regulatory Agency (ANEEL), the CPFL Piratininga’s new loss low voltage index is 3.90%
Consolidated Income Statement - Commercialization and Services (Pro-forma - R$ Thousands) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
644,117 |
850,775 |
-24.3% |
2,401,699 |
2,801,799 |
-14.3% |
Net Operating Revenue |
573,272 |
760,774 |
-24.6% |
2,130,153 |
2,497,168 |
-14.7% |
EBITDA (IFRS)(1) |
7,646 |
46,703 |
-83.6% |
134,171 |
263,411 |
-49.1% |
Adjusted EBITDA(2) |
46,602 |
46,703 |
-0.2% |
173,127 |
263,411 |
-34.3% |
Net Income (IFRS) |
(21,437) |
24,612 |
- |
82,704 |
168,046 |
-50.8% |
Adjusted Net Income(2) |
4,274 |
24,612 |
-82.6% |
108,415 |
168,046 |
-35.5% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
(2) Excluding the non-recurring effects in the EBITDA and in the Net Income.
Operating Revenue
In 4Q15, gross operating revenue reached R$ 644 million, representing a reduction of 24.3% (R$ 207 million), while net operating revenue were down by 24.6% (R$ 188 million) to R$ 573 million.
Página 39 de 63
4Q15/2015 Results | March 21, 2016 |
EBITDA
In 4Q15, EBITDA totaled R$ 8 million, compared to R$ 47 million in 4Q14, a reduction of 83.6% (R$ 39 million).
Excluding the non-recurring item of the recognition in 4Q15 of the loss for impairment of assets, totaling R$ 39 million, the Adjusted EBITDA reached R$ 47 million, stable compared to 4Q14.
Net Income
In 4Q15, net loss amounted to R$ 21 million, compared to a net income of R$ 25 million in 4Q14.
Excluding the non-recurring item described above, with an impact of R$ 26 million, the Adjusted Net Income totaled R$ 4 million in 4Q15, a reduction of 82.6% (R$ 20 million).
Consolidated Income Statement - Conventional Generation - IFRS (Pro-forma - R$ Thousands) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
289,335 |
352,906 |
-18.0% |
1,077,951 |
1,282,374 |
-15.9% |
Net Operating Revenue |
263,120 |
323,339 |
-18.6% |
982,326 |
1,189,139 |
-17.4% |
Cost of Electric Power |
(46,139) |
(179,967) |
-74.4% |
(223,495) |
(482,036) |
-53.6% |
Operating Costs & Expenses |
(54,622) |
(62,349) |
-12.4% |
(211,987) |
(220,879) |
-4.0% |
EBITDA(1) |
286,394 |
80,936 |
253.9% |
892,728 |
679,510 |
31.4% |
Net Income |
137,739 |
(52,011) |
- |
302,862 |
119,128 |
154.2% |
Note: (1) EBITDA is calculated from the sum of net income, taxes, financial result and depreciation/amortization.
Consolidated Income Statement - Conventional Generation - Adjusted(1) (Pro-forma - R$ Thousands) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
587,073 |
711,694 |
-17.5% |
2,204,666 |
2,673,996 |
-17.6% |
Net Operating Revenue |
534,148 |
648,617 |
-17.6% |
2,006,184 |
2,456,464 |
-18.3% |
Cost of Electric Power |
(19,499) |
(302,887) |
-93.6% |
(299,466) |
(792,188) |
-62.2% |
Operating Costs & Expenses |
(192,442) |
(278,438) |
-30.9% |
(728,508) |
(976,837) |
-25.4% |
EBIT |
322,207 |
67,291 |
378.8% |
978,210 |
687,439 |
42.3% |
EBITDA |
380,920 |
130,135 |
192.7% |
1,215,068 |
926,434 |
31.2% |
Adjusted EBITDA(2) |
284,685 |
257,879 |
10.4% |
1,415,238 |
1,218,346 |
16.2% |
Financial Income (Expense) |
(134,509) |
(129,020) |
4.3% |
(581,743) |
(519,430) |
12.0% |
Income Before Taxes |
187,698 |
(61,729) |
- |
396,467 |
167,057 |
137.3% |
Net Income |
126,417 |
(44,127) |
- |
276,872 |
105,999 |
161.2% |
Adjusted Net Income(2) |
62,902 |
40,184 |
56.5% |
408,985 |
298,661 |
36.9% |
Notas:
(1) Proportional Consolidation of Conventional Generation (Ceran, Baesa, Enercan, Foz do Chapecó and Epasa);
(2) Excluding the non-recurring effects in the EBITDA and in the Net Income.
Operating Revenue
In 4Q15, Gross Operating Revenue, considering the proportional consolidation of Conventional Generation, reached R$ 587 million, a reduction of 17.5% (R$ 125 million). Net Operating Revenue moved down 17.6% (R$ 114 million) to R$ 534 million.
The variation in the gross operating revenue is mainly due to the following factors:
(i) Reduction of the gain with the strategy put in place for the seasonality of physical guarantee (R$ 55 million). The gain of 4Q14 was recorded in operating revenue; while the gain of 4Q15 was recorded as a reducer of the cost of electric power;
(ii) Reduction in Epasa’s revenues, in the amount of R$ 82 million, reflecting the lower cost of acquisition of fuel oil;
Página 40 de 63
4Q15/2015 Results | March 21, 2016 |
Partially offset by:
(iii) Revenue increase due to prices adjustments in the PPAs of the Company’s hydroelectric power plants (Ceran, Baesa, Enercan, Foz do Chapecó and Jaguari Geração) (R$ 12 million).
Cost of Electric Power
In 4Q15, the cost of electric power, considering the proportional consolidation of Conventional Generation, reached R$ 19 million, a reduction of 93.6% (R$ 283 million), due mainly to the following factors:
(i) Gain with the strategy put in place for the seasonality of physical guarantee (cost reducer) in 4Q15 (R$ 59 million). The gain of 4Q14 was recorded in operating revenue;
(ii) GSF (Generation Scaling Factor) costs of R$ 23 million in 4Q15, while in 4Q14 this cost was of R$ 128 million – non-recurring effects. It is noteworthy that the power purchase agreement from Serra da Mesa HPP to Furnas exempts CPFL Geração of GSF expenses. Thus, these amounts are related to the Company’s other hydroelectric power plants (Ceran, Baesa, Enercan, Foz do Chapecó and Jaguari Geração);
(iii) Accounting of the renegotiation of GSF in 4Q15, in the amount of R$ 120 million – non-recurring effect;
Partially offset by:
(iv) Other effects (R$ 1 million).
Operating Costs and Expenses
The operating costs and expenses, considering the proportional consolidation of Conventional Generation, reached R$ 192 million in 4Q15, compared to R$ 278 million in 4Q14, a reduction of 30.9% (R$ 86 million), due to the variations in:
(i) PMSO item, which reached R$ 134 million, registering a reduction of 38.0% (R$ 82 million), due mainly to the reduction in expenses with material regarding the acquisition of fuel oil by Epasa (R$ 84 million) (associated revenue), partially offset by other effects (R$ 2 million);
Partially offset by:
(ii) Depreciation and Amortization, which reached R$ 59 million, a reduction of 6.6% (R$ 4 million).
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4Q15/2015 Results | March 21, 2016 |
MANAGERIAL ADJUSTMENTS IN PMSO, FOR COMPARISON PURPOSES (R$ million) | ||||
|
4Q15 |
4Q14 |
Variation | |
|
R$ MM |
% | ||
Reported PMSO (IFRS) |
|
|
|
|
Personnel |
(8.2) |
(8.2) |
(0.0) |
0.1% |
Material |
(0.5) |
(0.3) |
(0.2) |
73.2% |
Outsourced Services |
(4.9) |
(4.7) |
(0.2) |
4.9% |
Other Operating Costs/Expenses |
(9.1) |
(11.2) |
2.2 |
-19.2% |
Total Reported PMSO (IFRS) - (A) |
(22.7) |
(24.4) |
1.7 |
-6.9% |
Proportional Consolidation |
|
|
|
|
Personnel |
(3.5) |
(3.1) |
(0.4) |
12.7% |
Material |
(78.5) |
(171.4) |
92.9 |
-54.2% |
Outsourced Services |
(17.4) |
(6.3) |
(11.1) |
177.0% |
Other Operating Costs/Expenses |
(11.6) |
(10.4) |
(1.2) |
11.4% |
Total Proportional Consolidation - (B) |
(111.0) |
(191.2) |
80.2 |
-42.0% |
Adjusted PMSO |
|
|
|
|
Personnel |
(11.7) |
(11.3) |
(0.4) |
3.6% |
Material |
(79.0) |
(171.7) |
92.7 |
-54.0% |
Outsourced Services |
(22.2) |
(10.9) |
(11.3) |
103.6% |
Other Operating Costs/Expenses |
(20.7) |
(21.6) |
1.0 |
-4.5% |
Total Adjusted PMSO - (C) = (A) + (B) |
(133.7) |
(215.6) |
81.9 |
-38.0% |
EBITDA
In 4Q15, EBITDA (considering the proportional consolidation) was R$ 381 million, compared to R$ 130 million in 4Q14, an increase of 192.7% (R$ 251 million).
Considering the proportional consolidation and excluding the non-recurring effects, the Adjusted EBITDA totaled R$ 285 million in 4Q15, compared to R$ 258 million in 4Q14, an increase of 10.4% (R$ 27 million).
EBITDA Conciliation - IFRS x Adjusted (R$ million) | |||
|
4Q15 |
4Q14 |
Var. |
EBITDA - IFRS (A) |
286 |
81 |
253.9% |
(+) Proportional Consolidation (B) |
95 |
49 |
92.1% |
(+) Non-recurring effects (C) |
(96) |
128 |
- |
GSF (Generation Scaling Factor) |
23 |
128 |
-81.7% |
Renegotiation of GSF |
(120) |
- |
- |
Adjusted EBITDA (A + B + C) |
285 |
258 |
10.4% |
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4Q15/2015 Results | March 21, 2016 |
Financial Result
In 4Q15, financial result was a net expense of R$ 135 million, representing an increase of 4.3% (R$ 5 million). Financial Expenses moved from R$ 156 million in 4Q14 to R$ 186 million in 4Q15 (19.3% or R$ 30 million increase), mainly due to the increase in the average cost of debt. Financial Revenues moved from R$ 27 million in 4Q14 to R$ 52 million in 4Q15 (91.6% or R$ 25 million increase), mainly due to the increase in the income from financial investments.
Net Income
In 4Q15, net income (considering the proportional consolidation) was R$ 126 million, compared to a net loss of R$ 44 million in 4Q14.
Considering the proportional consolidation and excluding the non-recurring effects, the Adjusted Net Income totaled R$ 63 million in 4Q15, compared to R$ 40 million in 4Q14, an increase of 56.5% (R$ 23 million).
Net Income Conciliation - IFRS x Adjusted (R$ million) | |||
|
4Q15 |
4Q14 |
Var. |
Net Income - IFRS (A) |
138 |
(52) |
- |
(+) Proportional Consolidation (B) |
(11) |
8 |
- |
(+) Non-recurring effects (C) |
(64) |
84 |
- |
GSF (Generation Scaling Factor) |
15 |
84 |
-81.7% |
Renegotiation of GSF |
(79) |
- |
- |
Adjusted Net Income (A + B + C) |
63 |
40 |
56.5% |
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4Q15/2015 Results | March 21, 2016 |
Consolidated Income Statement - CPFL Renováveis (100% Participation - R$ Thousand) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue (IFRS) |
460,548 |
397,990 |
15.7% |
1,594,364 |
1,338,456 |
19.1% |
Net Operating Revenue |
437,427 |
369,362 |
18.4% |
1,499,356 |
1,247,627 |
20.2% |
Cost of Electric Power |
(28,992) |
(83,097) |
-65.1% |
(260,091) |
(354,387) |
-26.6% |
Operating Costs & Expenses |
(179,802) |
(197,136) |
-8.8% |
(778,492) |
(661,960) |
17.6% |
EBIT |
228,632 |
89,128 |
156.5% |
460,772 |
231,280 |
99.2% |
EBITDA (IFRS)* |
372,049 |
209,359 |
77.7% |
1,001,351 |
663,548 |
50.9% |
Financial Income (Expense) |
(124,026) |
(135,990) |
-8.8% |
(460,268) |
(364,997) |
26.1% |
Income Before Taxes |
104,607 |
(46,862) |
- |
504 |
(133,717) |
- |
Net Income (IFRS) |
82,642 |
(65,243) |
- |
(48,717) |
(167,361) |
- |
* Earnings before interest, taxes, depreciation and amortization | ||||||
|
||||||
Consolidated Income Statement - CPFL Renováveis (Proportional Participation - R$ Thousand) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
229,557 |
205,401 |
11.8% |
827,839 |
758,719 |
9.1% |
Net Operating Revenue |
218,409 |
190,626 |
14.6% |
778,980 |
707,348 |
10.1% |
Cost of Electric Power |
(7,612) |
(42,886) |
-82.3% |
(139,383) |
(202,502) |
-31.2% |
Operating Costs & Expenses |
(92,798) |
(101,743) |
-8.8% |
(401,788) |
(375,217) |
7.1% |
EBIT |
117,999 |
45,996 |
156.5% |
237,809 |
129,629 |
83.5% |
EBITDA (IFRS)* |
192,018 |
108,049 |
77.7% |
516,807 |
375,264 |
37.7% |
Adjusted EBITDA |
173,693 |
110,132 |
57.7% |
557,831 |
461,415 |
20.9% |
Financial Income (Expense) |
(64,011) |
(70,184) |
-8.8% |
(237,549) |
(204,919) |
15.9% |
Income Before Taxes |
53,988 |
(24,188) |
- |
260 |
(75,290) |
- |
Net Income |
42,653 |
(33,675) |
- |
(25,144) |
(93,757) |
- |
Adjusted Net Income |
24,328 |
(13,374) |
- |
15,881 |
10,613 |
49.6% |
* Earnings before interest, taxes, depreciation and amortization
Comments to CPFL Renováveis’ Financial Statements
In 4Q15, the variations in the Financial Statements of CPFL Renováveis are mainly due to the factors described below. These factors are partially offset by the amounts eliminated during the consolidation of CPFL Renováveis in CPFL Energia.
(i) Operational startup of Morro dos Ventos II wind farm (29.2 MW) in April 2015;
(ii) Events related to Bio Pedra TPP event;
(iii) GSF1 effects;
(iv) Positive effect related to the renegotiation of the hydrological risk (GSF) of the plants supplying PROINFA agreements
Note:
1) Part of the effects of GSF (R$ 0.7 million) and the negotiation of the hydrological risk (GSF) (R$ 8.1 million) are booked as revenue by CPFL Renováveis. We classify these amounts as costs in our pro-forma analysis.
Operating Revenue
Considering proportional participation, gross operating revenue reached R$ 230 million in 4Q15, representing an increase of 11.8% (R$ 24 million), while net operating revenue moved up by 14.6% (R$ 28 million) to R$ 218 million. The increase occurred, mainly, due to operational startup of the wind farm that began their sales in the period (mentioned above), Bio Pedra TPP event and the annual adjustment of contracts based on the IGP-M or IPCA that occurred throughout the period.
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4Q15/2015 Results | March 21, 2016 |
Cost of Electric Power
In 4Q15, the cost of electric power (considering the proportional participation) reached R$ 8 million, representing a reduction of 82.3% (R$ 35 million). This reduction was a result of the factors mentioned below:
(i) Variation of R$ 13 million regarding to the lower GSF cost1 of R$ 3 million in 4Q15. In 4Q14 this cost reached R$ 16 million (non-recurring effect);
(ii) Purchase of energy to meet SHPPs sales contracts that were not part of MRE. In 4Q15, the purchases of Dourados, Guaporé, Três Saltos and Socorro SHPPs totalized R$ 1 million, while in 4Q14 the purchases of Três Saltos, Americana and Socorro SHPPs totalized R$ 1 million (non-recurring effect);
(iii) Positive effect related to the renegotiation of the hydrological risk (GSF) of the plants supplying PROINFA agreements in 4Q15, adding R$ 13 million (non-recurring effect);
(iv) Need to purchase energy in 4Q14 to meet the seasonal adjustment of SHPPs in the amount of R$ 8 million, and for biomass plants of Bio Coopcana and Bio Alvorada in the amount of R$ 8 million, which did not repeat in 4Q15;
(v) Variation of R$ 11 million regarding to lower penalty for non-generation of energy at Bio Formosa, in the amount of R$ 1 million in 4Q15 versus R$ 12 million in 4Q14.
Partially offset by:
(vi) Agreement signed with the equipment supplier recording R$ 15 million to reimburse the energy purchases of Atlântica Wind Complex;
(vii) Penalty of R$ 1 million in 4Q15 resulting from obligations envisaged in the Bio Pedra Energy Reserve Auction (LER) contract;
(viii) Other effects (R$ 2 million)
Note:
1) Part of the effects of GSF (R$ 0.7 million) and the negotiation of the hydrological risk (GSF) (R$ 8.1 million) are booked as revenue by CPFL Renováveis. We classify these amounts as costs in our pro-forma analysis.
Operating Costs and Expenses
In 4Q15, operating costs and expenses (considering the proportional participation) reached R$ 93 million, representing a decrease of 8.8% (R$ 9 million). This decrease was a result of the factors mentioned below:
· PMSO item, which reached R$ 19 million, a decrease of 52.7% (R$ 21 million), due mainly to the following factors:
(i) R$ 8 million regarded to the recognition of material damage related to the accident at Bio Pedra in 4Q15 (non-recurring effect – decrease in costs);
(ii) R$ 5 million of accounting write-offs (with non-cash effect), in 4Q14, from discontinued projects and credits/advances whose expectation of receipt by the Company has changed, an effect that did not occur in 4Q15
(iii) The indemnity for unavailability of generation from an O&M supplier, in amount of R$ 3 million, in 4Q15;
(iv) Other effects (R$ 5 million)
· Depreciation and Amortization, which reached R$ 74 million, an increase of 19.3% (R$ 12 million), due mainly to the depreciation of the assets that went into operation between 4Q14 and 4Q15.
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4Q15/2015 Results | March 21, 2016 |
EBITDA
In 4Q15, EBITDA (considering the proportional participation) was R$ 192 million, an increase of 77.7% (R$ 84 million). Considering the proportional participation and excluding the non-recurring effects, the Adjusted EBITDA totaled R$ 174 million in 4Q15, compared to R$ 110 million in 4Q14, an increase of 57.7% (R$ 64 million).
EBITDA Conciliation - IFRS vs. Ajusted (R$ Million) | |||
|
4Q15 |
4Q14 |
Var. (%) |
EBITDA - IFRS (A) |
372 |
209 |
77.7% |
(+) Proportional Consolidation (B) |
(180) |
(101) |
- |
(+) Non-recurring effects (C) |
(18) |
2 |
- |
GSF and Energy Purchase for SHPP |
4 |
17 |
- |
GSF Proposal - MP 688 |
(14) |
- |
- |
Insurance - Bio Pedra |
(8) |
- |
- |
Renegociation - Suppliler |
- |
(15) |
- |
Ajusted EBITDA (A+B+C) |
174 |
110 |
57.7% |
Financial Result
In 4Q15, Net Financial Result was a net expense of R$ 64 million, representing a decrease of 8.8% (R$ 6 million). Financial Expenses were R$ 85 million in both quarters. Financial Revenues moved from R$ 15 million in 4Q14 to R$ 21 million in 4Q15, an increase of 42.2% (R$ 6 million). The key factors that affected the reported numbers were an increase of the indexes (CDI interbank rate moved from 11.72% in 4Q14 to 14.39% in 4Q15 and TJLP moved from 5.0% in 4Q14 to 7.0% in 4Q15), higher averaged cash flow and the non-recurring effects in amount of R$ 18 million that occurred in 4Q14, but not in 4Q15 :
(a) Financial Revenues: The receipt, in 4Q14, of monetary restatement on the advance for the termination of a contract with supplier of wind energy equipment, in the amount of R$ 1 million; and
(b) Financial Expenses: (i) Reversal of capitalized interest at the Atlântica wind complex in 4Q14, due to the revision of the startup of this complex in the amount of R$ 9 million (non-cash) and (ii) the recording of adjustment to present value in the amount of R$ 10 (non-cash), due to the approval of the new plan for the judicial reorganization of Baldin Bioenergia S.A. in 4Q14.
Net Income
In 4Q15, net income (considering the proportional participation) was R$ 43 million, compared to a net loss of R$ 34 million in 4Q14 (R$ 76 million). Considering the proportional participation and excluding the non-recurring effects, the Adjusted Net income totaled R$ 24 million in 4Q15, compared to an Adjusted Net loss of R$ 13 million in 4Q14 (R$ 38 million).
Página 46 de 63
4Q15/2015 Results | March 21, 2016 |
Net Income Conciliation - IFRS vs. Ajusted (R$ Million) | |||
|
4Q15 |
4Q14 |
Var. (%) |
Net Income - IFRS (A) |
83 |
(65) |
- |
(+) Proportional Consolidation (B) |
(40) |
32 |
- |
(+) Non-recurring effects1 (C) |
(18) |
20 |
- |
GSF and Energy Purchase for SHPP |
4 |
17 |
- |
GSF Proposal - MP 688 |
(14) |
- |
- |
Insurance - Bio Pedra |
(8) |
- |
- |
Renegociation - Suppliler |
- |
(15) |
- |
Non recurring effect - Financial Results |
- |
18 |
- |
Ajusted Net Income (A+B+C) |
24 |
(13) |
- |
Note:
1) CPFL Renováveis has adopted in its taxes management the presumed profit methodology. For this reason, the amounts of non-recurring effects listed on EBITDA conciliation are the same that are booked above.
On the date of this report, the portfolio of projects of CPFL Renováveis (100% Participation) totaled 1,802 MW of operating installed capacity and 333 MW of capacity under construction. The operational power plants comprises 38 Small Hydroelectric Power Plants – SHPPs (399 MW), 34 Wind Farms (1,032 MW), 8 Biomass Thermoelectric Power Plants (370 MW) and 1 Solar Power Plant (1 MW). Still under construction there are 11 Wind Farms (282 MW) and 2 SHPPs (51 MW).
Additionally, CPFL Renováveis owns wind and SHPP projects under development totaling 2,986 MW, representing a total portfolio of 5,121 MW.
The table below illustrates the overall portfolio of assets (100% participation) in operation, construction and development, and its installed capacity on this date:
CPFL Renováveis - Portfolio (100% participation) | |||||
In MW |
SHPP |
Wind |
Biomass |
Solar |
Total |
Operating |
399 |
1,032 |
370 |
1 |
1,802 |
Under construction |
51 |
282 |
- |
- |
333 |
Under development |
216 |
2,226 |
- |
544 |
2,986 |
Total |
666 |
3,540 |
370 |
545 |
5,121 |
Campo dos Ventos Wind Farms and São Benedito Wind Farms
Campo dos Ventos Complex Wind Farms (Campo dos Ventos I, III and V) and São Benedito Complex Wind Farms (Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula, São Domingos and Ventos de São Martinho), located at Rio Grande do Norte State, are under construction. They will be operational, according to scheduled, from 2Q16. The installed capacity is of 231.0 MW and the assured energy is of 129.2 average-MW. The energy will be sold in the free market.
Mata Velha SHPP
Mata Velha Small Hydroelectric Power Plant (SHPP), located at Minas Gerais, is under construction. As scheduled, it will gradually become operational from 1H16. The installed capacity is of 24.0 MW and the assured energy is of 13.1 average-MW. The energy was sold in 16th New Energia Auction (“LEN” in portuguese) held in 2013 (price: R$ 143.30/MWh – December 2015). The energy will be sold in the free market until the beginning of the as the operational startup will begin earlier than the deadline.
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4Q15/2015 Results | March 21, 2016 |
Pedra Cheirosa Wind Farms
Pedra Cheirosa Wind Farms (Pedra Cheirosa I and II), located at Ceará State, are under construction. Start-up is scheduled for 1H18. The installed capacity is of 51.3 MW and the assured energy is of 26.1 average-MW. The energy was sold in 18th New Energia Auction (“LEN” in portuguese) held in 2014 (price: R$ 133.00/MWh – December 2015).
Boa Vista II SHPP
CPFL Renováveis traded 14.8 average-MW on the 21st New Energy Auction, to be generated by Boa Vista II SHPP, located in the State of Minas Gerais with 26.5 MW of installed capacity. The contract arising from that trade operation will be in force for 25 years, starting to supply power on January 1, 2020. The energy will be sold by long-term contract in free market (price of R$ 207.64/MWh - base: December 2015).
Página 48 de 63
4Q15/2015 Results | March 21, 2016 |
(R$ thousands)
Consolidated | ||
ASSETS |
12/31/2015 |
12/31/2014 |
CURRENT |
||
Cash and Cash Equivalents |
5,682,802 |
4,357,455 |
Consumers, Concessionaries and Licensees |
3,174,918 |
2,251,124 |
Dividend and Interest on Equity |
91,392 |
54,483 |
Financial Investments |
23,633 |
5,324 |
Recoverable Taxes |
475,211 |
329,638 |
Derivatives |
627,493 |
23,260 |
Sectoral Financial Assets |
1,464,019 |
610,931 |
Materials and Supplies |
24,129 |
18,505 |
Leases |
12,883 |
12,396 |
Concession Financial Assets |
9,630 |
540,094 |
Other Credits |
922,541 |
1,011,495 |
TOTAL CURRENT |
12,508,652 |
9,214,704 |
NON-CURRENT |
||
Consumers, Concessionaries and Licensees |
128,946 |
123,405 |
Affiliates, Subsidiaries and Parent Company |
84,265 |
100,666 |
Judicial Deposits |
1,227,527 |
1,162,477 |
Recoverable Taxes |
167,159 |
144,383 |
Sectoral Financial Assets |
489,945 |
321,788 |
Derivatives |
1,651,260 |
584,917 |
Deferred Taxes |
334,886 |
938,496 |
Leases |
34,504 |
35,169 |
Concession Financial Assets |
3,597,474 |
2,834,522 |
Investments at Cost |
116,654 |
116,654 |
Other Credits |
560,014 |
388,828 |
Investments |
1,247,631 |
1,098,769 |
Property, Plant and Equipment |
9,173,217 |
9,149,486 |
Intangible |
9,210,338 |
8,930,171 |
TOTAL NON-CURRENT |
28,023,819 |
25,929,732 |
TOTAL ASSETS |
40,532,471 |
35,144,436 |
Página 49 de 63
4Q15/2015 Results | March 21, 2016 |
(R$ thousands)
|
Consolidated | |
LIABILITIES AND SHAREHOLDERS' EQUITY |
12/31/2015 |
12/31/2014 |
CURRENT |
||
Suppliers |
3,161,210 |
2,374,147 |
Accrued Interest on Debts |
118,267 |
97,525 |
Accrued Interest on Debentures |
232,227 |
293,108 |
Loans and Financing |
2,831,654 |
1,093,500 |
Debentures |
458,165 |
2,042,075 |
Employee Pension Plans |
802 |
85,374 |
Regulatory Charges |
852,017 |
43,795 |
Taxes, Fees and Contributions |
653,342 |
436,267 |
Dividend and Interest on Equity |
221,855 |
19,086 |
Accrued Liabilities |
79,924 |
70,252 |
Derivatives |
981 |
38 |
Sectoral Financial Liabilities |
- |
21,998 |
Public Utilities |
9,457 |
4,000 |
Other Accounts Payable |
904,971 |
835,941 |
TOTAL CURRENT |
9,524,873 |
7,417,104 |
NON-CURRENT |
||
Suppliers |
633 |
633 |
Accrued Interest on Debts |
120,659 |
60,717 |
Accrued Interest on Debentures |
16,487 |
- |
Loans and Financing |
11,592,206 |
9,426,634 |
Debentures |
6,363,552 |
6,136,400 |
Employee Pension Plans |
474,318 |
518,386 |
Deferred Taxes |
1,432,594 |
1,401,009 |
Reserve for Tax, Civil and Labor Risks |
569,534 |
508,151 |
Derivatives |
33,205 |
13,317 |
Public Utilities |
83,124 |
80,992 |
Other Accounts Payable |
191,148 |
183,766 |
TOTAL NON-CURRENT |
20,877,460 |
18,330,004 |
SHAREHOLDERS' EQUITY |
||
Capital |
5,348,312 |
4,793,424 |
Capital Reserve |
468,082 |
468,082 |
Legal Reserve |
694,058 |
650,811 |
Statutory Reserve - Concession Financial Assets |
585,451 |
330,437 |
Statutory Reserve - Strengthening of Working Capital |
392,972 |
554,888 |
Other Comprehensive Income |
185,321 |
145,893 |
7,674,196 |
6,943,535 | |
Non-Controlling Shareholders' Interest |
2,455,942 |
2,453,794 |
TOTAL SHAREHOLDERS' EQUITY |
10,130,138 |
9,397,329 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
40,532,471 |
35,144,436 |
Página 50 de 63
4Q15/2015 Results | March 21, 2016 |
(R$ thousands)
Consolidated - IFRS | ||||||||
|
|
4Q15 |
4Q14 |
Variation |
|
2015 |
2014 |
Variation |
OPERATING REVENUES |
|
|
||||||
Electricity Sales to Final Customers(1) |
|
6,421,970 |
4,301,517 |
49.3% |
|
23,627,430 |
15,710,949 |
50.4% |
Electricity Sales to Distributors |
|
853,483 |
874,301 |
-2.4% |
|
3,584,187 |
3,144,864 |
14.0% |
Revenue from building the infrastructure |
|
278,900 |
308,944 |
-9.7% |
|
1,046,669 |
944,997 |
10.8% |
Sectorial financial assets and liabilities |
|
194,554 |
910,720 |
-78.6% |
|
2,506,524 |
910,720 |
175.2% |
Other Operating Revenues(1) |
|
826,115 |
403,689 |
104.6% |
|
3,144,149 |
2,084,849 |
50.8% |
|
8,575,023 |
6,799,170 |
26.1% |
|
33,908,958 |
22,796,379 |
48.7% | |
|
|
|||||||
DEDUCTIONS FROM OPERATING REVENUES |
|
(3,788,942) |
(1,556,196) |
143.5% |
|
(13,703,089) |
(5,490,436) |
149.6% |
NET OPERATING REVENUES |
|
4,786,081 |
5,242,974 |
-8.7% |
|
20,205,869 |
17,305,942 |
16.8% |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|
||||||
Electricity Purchased for Resale |
|
(2,639,168) |
(2,918,628) |
-9.6% |
|
(11,846,779) |
(10,157,636) |
16.6% |
Electricity Network Usage Charges |
|
(322,998) |
(70,996) |
354.9% |
|
(1,464,967) |
(485,495) |
201.7% |
|
(2,962,166) |
(2,989,625) |
-0.9% |
|
(13,311,747) |
(10,643,131) |
25.1% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(240,322) |
(226,934) |
5.9% |
|
(939,209) |
(852,471) |
10.2% |
Material |
|
(34,112) |
(29,708) |
14.8% |
|
(139,935) |
(117,830) |
18.8% |
Outsourced Services |
|
(146,251) |
(153,429) |
-4.7% |
|
(558,994) |
(526,019) |
6.3% |
Other Operating Costs/Expenses |
|
(200,552) |
(144,594) |
38.7% |
|
(618,508) |
(476,023) |
29.9% |
Allowance for Doubtful Accounts |
|
(32,769) |
(22,695) |
44.4% |
|
(126,879) |
(83,699) |
51.6% |
Legal and judicial expenses |
|
(66,294) |
(84,160) |
-21.2% |
|
(263,463) |
(192,464) |
36.9% |
Others |
|
(101,488) |
(37,739) |
168.9% |
|
(228,166) |
(199,860) |
14.2% |
Cost of building the infrastructure |
|
(278,696) |
(306,214) |
-9.0% |
|
(1,045,301) |
(942,267) |
10.9% |
Employee Pension Plans |
|
(11,148) |
(12,041) |
-7.4% |
|
(60,184) |
(48,165) |
25.0% |
Depreciation and Amortization |
|
(258,233) |
(243,240) |
6.2% |
|
(977,238) |
(874,982) |
11.7% |
Amortization of Concession's Intangible |
|
(69,090) |
(65,993) |
4.7% |
|
(302,665) |
(284,982) |
6.2% |
|
(1,238,405) |
(1,182,153) |
4.8% |
|
(4,642,033) |
(4,122,739) |
12.6% | |
|
|
|||||||
EBITDA |
|
1,005,017 |
1,342,397 |
-25.1% |
|
3,750,012 |
3,760,903 |
-0.3% |
|
|
|||||||
EBIT |
|
585,509 |
1,071,197 |
-45.3% |
|
2,252,090 |
2,540,073 |
-11.3% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
520,566 |
242,264 |
114.9% |
|
1,558,047 |
890,436 |
75.0% |
Financial Expenses |
|
(635,062) |
(509,789) |
24.6% |
|
(2,572,567) |
(1,979,890) |
29.9% |
|
(114,496) |
(267,525) |
-57.2% |
|
(1,014,520) |
(1,089,454) |
-6.9% | |
|
|
|||||||
EQUITY ACCOUNTING |
|
|
||||||
Equity Accounting |
|
92,184 |
(38,032) |
-342.4% |
|
218,021 |
60,866 |
258.2% |
Assets Surplus Value Amortization |
|
(284) |
(297) |
-4.3% |
|
(1,136) |
(1,182) |
-3.9% |
|
91,900 |
(38,328) |
-339.8% |
|
216,885 |
59,684 |
263.4% | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
562,913 |
765,344 |
-26.4% |
|
1,454,454 |
1,510,303 |
-3.7% |
|
|
|||||||
Social Contribution |
|
(55,190) |
(77,705) |
-29.0% |
|
(160,162) |
(168,989) |
-5.2% |
Income Tax |
(145,217) |
(218,022) |
-33.4% |
|
(419,015) |
(454,872) |
-7.9% | |
|
|
|||||||
NET INCOME |
|
362,507 |
469,616 |
-22.8% |
|
875,277 |
886,443 |
-1.3% |
Controlling Shareholders' Interest |
|
304,177 |
512,005 |
-40.6% |
|
864,940 |
949,177 |
-8.9% |
Non-Controlling Shareholders' Interest |
|
58,329 |
(42,389) |
-237.6% |
|
10,337 |
(62,733) |
-116.5% |
Note: (1) TUSD revenue from captive customers reclassified from the line of “other operating revenues” to the line of “electricity
Página 51 de 63
4Q15/2015 Results | March 21, 2016 |
(Pro forma, R$ thousands)
Consolidated - Adjusted | ||||||||
|
|
4Q15 |
4Q14 |
Variation |
|
2015 |
2014 |
Variation |
OPERATING REVENUES |
|
|
||||||
Electricity Sales to Final Customers(1) |
|
6,419,684 |
4,301,517 |
49.2% |
|
23,621,040 |
15,361,640 |
53.8% |
Electricity Sales to Distributors |
|
791,068 |
865,804 |
-8.6% |
|
3,329,560 |
3,311,324 |
0.6% |
Revenue from building the infrastructure |
|
278,900 |
308,944 |
-9.7% |
|
1,046,669 |
944,997 |
10.8% |
Sectorial financial assets and liabilities |
|
194,554 |
357,293 |
-45.5% |
|
2,506,524 |
357,293 |
601.5% |
Other Operating Revenues(1) |
|
814,520 |
401,851 |
102.7% |
|
3,131,202 |
2,080,201 |
50.5% |
|
8,498,727 |
6,235,409 |
36.3% |
|
33,634,995 |
22,055,455 |
52.5% | |
|
|
|||||||
DEDUCTIONS FROM OPERATING REVENUES |
|
(3,790,427) |
(1,512,118) |
150.7% |
|
(13,673,518) |
(5,386,421) |
153.9% |
NET OPERATING REVENUES |
|
4,708,300 |
4,723,291 |
-0.3% |
|
19,961,477 |
16,669,035 |
19.8% |
|
|
|||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|
||||||
Electricity Purchased for Resale |
|
(2,545,626) |
(2,688,851) |
-5.3% |
|
(10,937,151) |
(8,740,543) |
25.1% |
Electricity Network Usage Charges |
|
(328,931) |
(78,111) |
321.1% |
|
(1,490,225) |
(496,435) |
200.2% |
|
(2,874,557) |
(2,766,961) |
3.9% |
|
(12,427,375) |
(9,236,978) |
34.5% | |
OPERATING COSTS AND EXPENSES |
|
|
||||||
Personnel |
|
(234,975) |
(221,392) |
6.1% |
|
(916,775) |
(832,780) |
10.1% |
Material |
|
(111,542) |
(200,382) |
-44.3% |
|
(455,035) |
(695,077) |
-34.5% |
Outsourced Services |
|
(152,630) |
(141,502) |
7.9% |
|
(533,787) |
(500,955) |
6.6% |
Other Operating Costs/Expenses |
|
(200,844) |
(160,600) |
25.1% |
|
(575,253) |
(510,777) |
12.6% |
Allowance for Doubtful Accounts |
|
(33,041) |
(21,356) |
54.7% |
|
(126,906) |
(82,447) |
53.9% |
Legal and judicial expenses |
|
(66,808) |
(84,183) |
-20.6% |
|
(215,605) |
(192,013) |
12.3% |
Others |
|
(100,994) |
(55,061) |
83.4% |
|
(232,742) |
(236,317) |
-1.5% |
Cost of building the infrastructure |
|
(278,696) |
(306,214) |
-9.0% |
|
(1,045,301) |
(942,267) |
10.9% |
Employee Pension Plans |
|
(11,148) |
(12,041) |
-7.4% |
|
(60,184) |
(48,165) |
25.0% |
Depreciation and Amortization |
|
(233,703) |
(222,672) |
5.0% |
|
(899,637) |
(849,547) |
5.9% |
Amortization of Concession's Intangible |
|
(51,083) |
(53,280) |
-4.1% |
|
(227,680) |
(231,297) |
-1.6% |
|
(1,274,621) |
(1,318,082) |
-3.3% |
|
(4,713,652) |
(4,610,864) |
2.2% | |
|
|
|||||||
Adjusted EBITDA² |
|
843,908 |
914,199 |
-7.7% |
|
3,947,766 |
3,901,083 |
1.2% |
|
|
|||||||
EBIT |
|
559,122 |
638,247 |
-12.4% |
|
2,820,449 |
2,821,192 |
0.0% |
|
|
|||||||
FINANCIAL INCOME (EXPENSE) |
|
|
||||||
Financial Income |
|
500,005 |
236,565 |
111.4% |
|
1,479,640 |
925,924 |
59.8% |
Financial Expenses |
|
(595,297) |
(447,061) |
33.2% |
|
(2,429,887) |
(1,893,685) |
28.3% |
|
(95,292) |
(210,496) |
-54.7% |
|
(950,247) |
(967,761) |
-1.8% | |
|
|
|||||||
EQUITY ACCOUNTING |
|
|
||||||
Equity Accounting |
|
- |
(0) |
- |
|
- |
(953) |
- |
Assets Surplus Value Amortization |
|
- |
- |
- |
|
- |
- |
- |
|
- |
(0) |
- |
|
- |
(953) |
- | |
|
|
|||||||
INCOME BEFORE TAXES ON INCOME |
|
463,830 |
427,751 |
8.4% |
|
1,870,202 |
1,852,479 |
1.0% |
|
|
|||||||
Social Contribution |
|
(56,321) |
(36,173) |
55.7% |
|
(202,988) |
(183,746) |
10.5% |
Income Tax |
(152,442) |
(107,970) |
41.2% |
|
(542,835) |
(506,768) |
7.1% | |
|
|
|||||||
Adjusted NET INCOME³ |
|
255,066 |
283,609 |
-10.1% |
|
1,124,379 |
1,161,965 |
-3.2% |
Notes:
(1) Adjusted figures take into account CPFL’s equivalent stake in each generation project, the sectorial financial assets and liabilities (previously called regulatory assets and liabilities) of 2014 and disregard non-recurring effects. Since 4Q14, the old regulatory assets and liabilities, now called sectorial financial assets and liabilities, were recognized by the IFRS.
(2) TUSD revenue from captive customers reclassified from the line of “other operating revenues” to the line of “electricity
sales to final customers”.
Página 52 de 63
4Q15/2015 Results | March 21, 2016 |
(R$ thousands)
Consolidated | ||
4Q15 |
2015 | |
Beginning Balance |
4,033,374 |
4,357,455 |
Net Income Before Taxes |
562,913 |
1,454,454 |
Depreciation and Amortization |
327,323 |
1,279,902 |
Interest on Debts and Monetary and Foreign Exchange Restatements |
358,842 |
1,519,819 |
Consumers, Concessionaries and Licensees |
122,764 |
(1,055,143) |
Sectoral Financial Assets |
412,940 |
(858,860) |
Accounts Receivable - Resources Provided by the CDE/CCEE |
502,086 |
181,141 |
Suppliers |
908,399 |
787,063 |
Sectoral Financial Liabilities |
(229) |
(23,170) |
Accounts Payable - Resources Provided by the CDE |
(12,866) |
19,696 |
Interest on Debts and Debentures Paid |
(412,448) |
(1,595,649) |
Income Tax and Social Contribution Paid |
(23,092) |
(276,061) |
Others |
(589,555) |
1,124,782 |
1,594,164 |
1,103,520 | |
Total Operating Activities |
2,157,077 |
2,557,974 |
Investment Activities |
||
Acquisition of Property, Plant and Equipment, and Intangibles |
(496,404) |
(1,427,796) |
Others |
(2,871) |
(97,098) |
Total Investment Activities |
(499,275) |
(1,524,894) |
Financing Activities |
||
Capital Increase by Non Controlling Shareholders |
7 |
7 |
Loans and Debentures |
354,004 |
4,532,167 |
Principal Amortization of Loans and Debentures, Net of Derivatives |
(344,174) |
(4,172,994) |
Dividend and Interest on Equity Paid |
(4,443) |
(5,204) |
Others |
(13,768) |
(61,709) |
Total Financing Activities |
(8,374) |
292,267 |
Cash Flow Generation |
1,649,428 |
1,325,347 |
Ending Balance - 12/31/2015 |
5,682,802 |
5,682,802 |
Página 53 de 63
4Q15/2015 Results | March 21, 2016 |
(Pro forma, R$ thousands)
Conventional Generation (IFRS) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
OPERATING REVENUE |
|
|
|
|
| |
Eletricity Sales to Final Consumers |
- |
- |
- |
- |
- |
- |
Eletricity Sales to Distributors |
288,061 |
351,624 |
-18.1% |
1,072,784 |
1,277,421 |
-16.0% |
Other Operating Revenues |
1,274 |
1,282 |
-0.7% |
5,167 |
4,953 |
4.3% |
|
289,335 |
352,906 |
-18.0% |
1,077,951 |
1,282,374 |
-15.9% |
|
|
|
|
|
|
|
DEDUCTIONS FROM OPERATING REVENUE |
(26,215) |
(29,567) |
-11.3% |
(95,625) |
(93,235) |
2.6% |
NET OPERATING REVENUE |
263,120 |
323,339 |
-18.6% |
982,326 |
1,189,139 |
-17.4% |
|
|
|
|
|
|
|
COST OF ELETRIC ENERGY SERVICES |
|
|
|
|
|
|
Eletricity Purchased for Resale |
(40,156) |
(174,683) |
-77.0% |
(201,246) |
(462,734) |
-56.5% |
Eletricity Network Usage Charges |
(5,983) |
(5,284) |
13.2% |
(22,249) |
(19,302) |
15.3% |
|
(46,139) |
(179,967) |
-74.4% |
(223,495) |
(482,036) |
-53.6% |
OPERATING COSTS AND EXPENSES |
|
|
|
|
|
|
Personnel |
(8,201) |
(8,190) |
0.1% |
(32,786) |
(32,093) |
2.2% |
Material |
(543) |
(313) |
73.2% |
(2,240) |
(1,176) |
90.4% |
Outsourced Services |
(4,889) |
(4,659) |
4.9% |
(18,591) |
(16,356) |
13.7% |
Other Operating Costs/Expenses |
(9,065) |
(11,222) |
-19.2% |
(30,095) |
(38,741) |
-22.3% |
Employee Pension Plans |
(73) |
(19) |
279.2% |
(413) |
(77) |
438.3% |
Depreciation and Amortization |
(27,806) |
(33,798) |
-17.7% |
(111,680) |
(115,841) |
-3.6% |
Amortization of Concession's Intangible |
(4,046) |
(4,148) |
-2.5% |
(16,184) |
(16,595) |
-2.5% |
|
(54,622) |
(62,349) |
-12.4% |
(211,987) |
(220,879) |
-4.0% |
|
|
|
|
|
|
|
EBITDA |
286,394 |
80,936 |
253.9% |
892,728 |
679,510 |
31.4% |
|
|
|
|
|
|
|
EBIT |
162,358 |
81,023 |
100.4% |
546,844 |
486,225 |
12.5% |
|
|
|
|
|
|
|
FINANCIAL INCOME (EXPENSE) |
|
|
|
|
|
|
Financial Income |
42,979 |
21,162 |
103.1% |
126,461 |
92,326 |
37.0% |
Financial Expenses |
(136,677) |
(117,380) |
16.4% |
(549,758) |
(482,800) |
13.9% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
|
(93,698) |
(96,218) |
-2.6% |
(423,297) |
(390,473) |
8.4% |
|
|
|
|
|
|
|
EQUITY ACCOUNTING |
|
|
|
|
|
|
Equity Accounting |
92,184 |
(38,033) |
- |
218,020 |
60,850 |
258.3% |
Assets Surplus Value Amortization |
(284) |
(295) |
-3.9% |
(1,136) |
(1,182) |
-3.9% |
|
91,900 |
(38,328) |
- |
216,885 |
59,668 |
263.5% |
|
|
|
|
|
|
|
INCOME BEFORE TAXES ON INCOME |
160,560 |
(53,523) |
- |
340,432 |
155,420 |
119.0% |
|
|
|
|
|
|
|
Social Contribution |
(5,942) |
298 |
- |
(9,797) |
(9,696) |
1.0% |
Income Tax |
(16,879) |
1,214 |
- |
(27,773) |
(26,595) |
4.4% |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
137,739 |
(52,011) |
- |
302,862 |
119,128 |
154.2% |
Controlling Shareholders' Interest |
121,691 |
(40,549) |
- |
271,914 |
109,080 |
149.3% |
Non-Controlling Shareholders' Interest |
16,049 |
(11,462) |
- |
30,948 |
10,049 |
208.0% |
Página 54 de 63
4Q15/2015 Results | March 21, 2016 |
(Pro forma, R$ thousands)
Conventional Generation (Adjusted) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
OPERATING REVENUE |
|
|
|
|
|
|
Eletricity Sales to Final Consumers |
- |
- |
- |
- |
- |
- |
Eletricity Sales to Distributors |
585,203 |
710,781 |
-17.7% |
2,200,863 |
2,670,838 |
-17.6% |
Other Operating Revenues |
1,870 |
913 |
104.7% |
3,803 |
3,158 |
20.4% |
|
587,073 |
711,694 |
-17.5% |
2,204,666 |
2,673,996 |
-17.6% |
|
|
|
|
|
|
|
DEDUCTIONS FROM OPERATING REVENUE |
(52,925) |
(63,077) |
-16.1% |
(198,482) |
(217,532) |
-8.8% |
NET OPERATING REVENUE |
534,148 |
648,617 |
-17.6% |
2,006,184 |
2,456,464 |
-18.3% |
|
|
|
|
|
|
|
COST OF ELETRIC ENERGY SERVICES |
|
|
|
|
|
|
Eletricity Purchased for Resale |
(93,831) |
(154,677) |
- |
(15,952) |
(424,096) |
- |
Eletricity Network Usage Charges |
(21,903) |
(20,466) |
7.0% |
(83,343) |
(76,180) |
9.4% |
|
(115,734) |
(175,143) |
- |
(99,296) |
(500,276) |
- |
OPERATING COSTS AND EXPENSES |
|
|
|
|
|
|
Personnel |
(11,744) |
(11,336) |
3.6% |
(45,054) |
(42,143) |
6.9% |
Material |
(78,994) |
(171,667) |
-54.0% |
(325,372) |
(581,511) |
-44.0% |
Outsourced Services |
(22,240) |
(10,923) |
103.6% |
(51,467) |
(38,964) |
32.1% |
Other Operating Costs/Expenses |
(20,678) |
(21,649) |
-4.5% |
(69,345) |
(74,194) |
-6.5% |
Employee Pension Plans |
(73) |
(19) |
279.2% |
(413) |
(77) |
438.3% |
Depreciation and Amortization |
(54,383) |
(58,400) |
-6.9% |
(219,539) |
(222,171) |
-1.2% |
Amortization of Concession's Intangible |
(4,330) |
(4,444) |
-2.6% |
(17,319) |
(17,777) |
-2.6% |
|
(192,442) |
(278,438) |
-30.9% |
(728,508) |
(976,837) |
-25.4% |
|
|
|
|
|
|
|
EBITDA |
284,685 |
257,879 |
10.4% |
1,415,238 |
1,218,346 |
16.2% |
|
|
|
|
|
|
|
EBIT |
225,972 |
195,035 |
15.9% |
1,178,380 |
979,351 |
20.3% |
|
|
|
|
|
|
|
FINANCIAL INCOME (EXPENSE) |
|
|
|
|
|
|
Financial Income |
51,622 |
26,940 |
91.6% |
148,049 |
114,841 |
28.9% |
Financial Expenses |
(186,131) |
(155,960) |
19.3% |
(729,792) |
(634,271) |
15.1% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
|
(134,509) |
(129,020) |
4.3% |
(581,743) |
(519,430) |
12.0% |
|
|
|
|
|
|
|
EQUITY ACCOUNTING |
|
|
|
|
|
|
Equity Accounting |
- |
- |
- |
- |
(953) |
- |
Assets Surplus Value Amortization |
- |
- |
- |
- |
- |
- |
|
- |
- |
- |
- |
(953) |
- |
|
|
|
|
|
|
|
INCOME BEFORE TAXES ON INCOME |
91,463 |
66,015 |
38.5% |
596,637 |
458,969 |
30.0% |
|
|
|
|
|
|
|
Social Contribution |
(8,072) |
(7,165) |
12.7% |
(52,712) |
(42,930) |
22.8% |
Income Tax |
(20,489) |
(18,666) |
9.8% |
(134,941) |
(117,377) |
15.0% |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
62,902 |
40,184 |
56.5% |
408,985 |
298,661 |
36.9% |
Note: Proportional Consolidation of Conventional Generation (Ceran, Baesa, Enercan, Foz do Chapecó, Epasa and Jaguari Geração) and excludes the non-recurring effects.
Página 55 de 63
4Q15/2015 Results | March 21, 2016 |
(R$ thousands)
Consolidated - IFRS (100% Participation) | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
OPERATING REVENUES |
|
| ||||
Eletricity Sales to Final Consumers |
4,724 |
- |
0.0% |
13,205 |
- |
0.0% |
Eletricity Sales to Distributors |
426,322 |
394,688 |
8.0% |
1,545,736 |
1,334,285 |
15.8% |
Other Operating Revenues |
29,501 |
3,302 |
793.5% |
35,423 |
4,171 |
749.3% |
|
460,548 |
397,990 |
15.7% |
1,594,364 |
1,338,456 |
19.1% |
|
|
| ||||
DEDUCTIONS FROM OPERATING REVENUES |
(23,121) |
(28,628) |
-19.2% |
(95,009) |
(90,829) |
4.6% |
NET OPERATING REVENUES |
437,427 |
369,362 |
18.4% |
1,499,356 |
1,247,627 |
20.2% |
|
|
| ||||
COST OF ELETRIC ENERGY SERVICES |
|
| ||||
Eletricity Purchased for Resale |
(7,192) |
(65,683) |
-89.1% |
(181,447) |
(297,881) |
-39.1% |
Eletricity Network Usage Charges |
(21,800) |
(17,414) |
25.2% |
(78,645) |
(56,506) |
39.2% |
|
(28,992) |
(83,097) |
-65.1% |
(260,091) |
(354,387) |
-26.6% |
OPERATING COSTS AND EXPENSES |
|
| ||||
Personnel |
(18,375) |
(17,955) |
2.3% |
(71,714) |
(69,097) |
3.8% |
Material |
(2,199) |
(1,406) |
56.4% |
(16,686) |
(7,391) |
125.8% |
Outsourced Services |
(30,336) |
(37,951) |
-20.1% |
(129,922) |
(110,779) |
17.3% |
Other Operating Costs/Expenses |
14,525 |
(19,593) |
-174.1% |
(19,592) |
(42,425) |
-53.8% |
Depreciation and Amortization |
(105,617) |
(93,348) |
13.1% |
(383,269) |
(303,704) |
26.2% |
Amortization of Concession's Intangible |
(37,800) |
(26,883) |
40.6% |
(157,309) |
(128,563) |
22.4% |
|
(179,802) |
(197,136) |
-8.8% |
(778,492) |
(661,960) |
17.6% |
|
|
|
|
|
|
|
EBITDA (IFRS)(1) |
372,049 |
209,359 |
77.7% |
1,001,351 |
663,548 |
50.9% |
|
|
| ||||
EBIT |
228,632 |
89,128 |
156.5% |
460,772 |
231,280 |
99.2% |
|
|
| ||||
FINANCIAL INCOME (EXPENSE) |
|
| ||||
Financial Income |
40,034 |
28,160 |
42.2% |
139,080 |
98,991 |
40.5% |
Financial Expenses |
(164,059) |
(164,150) |
-0.1% |
(599,348) |
(463,988) |
29.2% |
|
(124,026) |
(135,990) |
-8.8% |
(460,268) |
(364,997) |
26.1% |
|
|
| ||||
INCOME BEFORE TAXES ON INCOME |
104,607 |
(46,862) |
-323.2% |
504 |
(133,717) |
-100.4% |
|
|
| ||||
Social Contribution |
(9,310) |
(8,239) |
13.0% |
(22,274) |
(16,313) |
36.5% |
Income Tax |
(12,654) |
(10,143) |
24.8% |
(26,947) |
(17,332) |
55.5% |
|
|
|
|
|
|
|
NET INCOME (IFRS) |
82,642 |
(65,243) |
-226.7% |
(48,717) |
(167,361) |
-70.9% |
Controlling Shareholders' Interest |
78,204 |
(66,473) |
-217.6% |
(54,447) |
(168,771) |
-67.7% |
Non-Controlling Shareholders' Interest |
4,438 |
1,230 |
260.9% |
5,730 |
1,410 |
306.5% |
Note: (1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12.
Página 56 de 63
4Q15/2015 Results | March 21, 2016 |
(Pro forma, R$ thousands)
Consolidated - Adjusted (Proportional Participation) | ||||||||
|
4Q15 |
4T14 |
Var. |
Var. % |
2015 |
2014 |
Var. |
Var. % |
OPERATING REVENUES |
|
| ||||||
Eletricity Sales to Final Consumers |
2,438 |
- |
2,438 |
0.0% |
6,815 |
- |
6,815 |
0.0% |
Eletricity Sales to Distributors |
211,892 |
203,697 |
8,196 |
4.0% |
802,742 |
756,503 |
46,239 |
6.1% |
Other Operating Revenues |
15,226 |
1,704 |
13,522 |
793.5% |
18,282 |
2,215 |
16,067 |
725.3% |
|
229,557 |
205,401 |
24,156 |
11.8% |
827,839 |
758,719 |
69,121 |
9.1% |
|
|
| ||||||
DEDUCTIONS FROM OPERATING REVENUES |
(11,148) |
(14,775) |
3,627 |
-24.5% |
(48,859) |
(51,370) |
2,511 |
-4.9% |
NET OPERATING REVENUES |
218,409 |
190,626 |
27,783 |
14.6% |
778,980 |
707,348 |
71,632 |
10.1% |
|
|
| ||||||
COST OF ELETRIC ENERGY SERVICES |
|
| ||||||
Eletricity Purchased for Resale |
3,640 |
(33,899) |
37,539 |
-110.7% |
(98,794) |
(170,516) |
71,722 |
-42.1% |
Eletricity Network Usage Charges |
(11,251) |
(8,987) |
(2,264) |
25.2% |
(40,589) |
(31,987) |
(8,603) |
26.9% |
|
(7,612) |
(42,886) |
35,275 |
-82.3% |
(139,383) |
(202,502) |
63,119 |
-31.2% |
OPERATING COSTS AND EXPENSES |
|
| ||||||
Personnel |
(9,484) |
(9,266) |
(217) |
2.3% |
(37,012) |
(39,356) |
2,344 |
-6.0% |
Material |
(1,135) |
(726) |
(409) |
56.4% |
(8,612) |
(4,247) |
(4,365) |
102.8% |
Outsourced Services |
(15,657) |
(19,587) |
3,930 |
-20.1% |
(67,054) |
(62,434) |
(4,620) |
7.4% |
Other Operating Costs/Expenses |
7,497 |
(10,112) |
17,608 |
-174.1% |
(10,111) |
(23,545) |
13,433 |
-57.1% |
Depreciation and Amortization |
(54,510) |
(48,178) |
(6,332) |
13.1% |
(197,809) |
(171,938) |
(25,871) |
15.0% |
Amortization of Concession's Intangible |
(19,509) |
(13,875) |
(5,634) |
40.6% |
(81,189) |
(73,697) |
(7,492) |
10.2% |
|
(92,798) |
(101,743) |
8,946 |
-8.8% |
(401,788) |
(375,217) |
(26,570) |
7.1% |
|
|
|
|
|
|
|
|
|
EBITDA |
192,018 |
108,049 |
83,969 |
77.7% |
516,807 |
375,264 |
141,543 |
37.7% |
EBITDA Adjusted (1) |
173,693 |
110,132 |
63,562 |
57.7% |
557,831 |
461,415 |
96,416 |
20.9% |
|
|
| ||||||
EBIT |
117,999 |
45,996 |
72,003 |
156.5% |
237,809 |
129,629 |
108,180 |
83.5% |
|
|
| ||||||
FINANCIAL INCOME (EXPENSE) |
|
| ||||||
Financial Income |
20,662 |
14,533 |
6,129 |
42.2% |
71,780 |
56,206 |
15,574 |
27.7% |
Financial Expenses |
(84,673) |
(84,718) |
45 |
-0.1% |
(309,329) |
(261,125) |
(48,204) |
18.5% |
|
(64,011) |
(70,184) |
6,173 |
-8.8% |
(237,549) |
(204,919) |
(32,630) |
15.9% |
|
|
| ||||||
INCOME BEFORE TAXES ON INCOME |
53,988 |
(24,188) |
78,177 |
-323.2% |
260 |
(75,290) |
75,550 |
-100.3% |
|
|
| ||||||
Social Contribution |
(4,805) |
(4,252) |
(553) |
13.0% |
(11,496) |
(9,002) |
(2,494) |
27.7% |
Income Tax |
(6,531) |
(5,235) |
(1,296) |
24.8% |
(13,908) |
(9,464) |
(4,444) |
47.0% |
|
|
|
|
|
|
|
|
|
NET INCOME |
42,653 |
(33,675) |
76,327 |
-226.7% |
(25,144) |
(93,757) |
68,613 |
-73.2% |
NET INCOME Adjusted(1) |
24,328 |
(13,374) |
37,701 |
-281.9% |
15,881 |
10,613 |
5,268 |
49.6% |
Note: (1) Considers the proportional participation and excludes the non-recurring effect.
Página 57 de 63
4Q15/2015 Results | March 21, 2016 |
(Pro forma, R$ thousands)
Consolidated | ||||||
|
4Q15 |
4Q14 |
Variation |
2015 |
2014 |
Variation |
OPERATING REVENUE |
||||||
Electricity Sales to Final Customers |
6,137,777 |
4,066,995 |
50.9% |
22,492,874 |
14,789,028 |
52.1% |
Electricity Sales to Distributors |
128,446 |
10,639 |
1107.3% |
850,429 |
230,620 |
268.8% |
Revenue from building the infrastructure |
273,359 |
269,179 |
1.6% |
1,009,184 |
877,409 |
15.0% |
Sectoral financial assets and liabilities |
194,554 |
910,720 |
- |
2,506,524 |
910,720 |
- |
Other Operating Revenues |
772,780 |
365,737 |
111.3% |
3,015,372 |
1,962,932 |
53.6% |
|
7,506,915 |
5,623,269 |
33.5% |
29,874,382 |
18,770,709 |
59.2% |
|
|
|
|
|||
DEDUCTIONS FROM OPERATING REVENUE |
(3,692,304) |
(1,441,933) |
156.1% |
(13,314,665) |
(5,105,310) |
160.8% |
NET OPERATING REVENUE |
3,814,611 |
4,181,336 |
-8.8% |
16,559,717 |
13,665,399 |
21.2% |
|
||||||
COST OF ELECTRIC ENERGY SERVICES |
||||||
Electricity Purchased for Resale |
(2,386,403) |
(2,408,307) |
-0.9% |
(10,561,531) |
(8,581,937) |
23.1% |
Electricity Network Usage Charges |
(298,151) |
(49,253) |
505.4% |
(1,372,686) |
(416,962) |
229.2% |
|
(2,684,554) |
(2,457,560) |
9.2% |
(11,934,217) |
(8,998,898) |
32.6% |
OPERATING COSTS AND EXPENSES |
||||||
Personnel |
(167,148) |
(159,502) |
4.8% |
(654,490) |
(601,922) |
8.7% |
Material |
(24,564) |
(21,469) |
14.4% |
(94,361) |
(84,307) |
11.9% |
Outsourced Services |
(148,441) |
(138,930) |
6.8% |
(529,320) |
(480,750) |
10.1% |
Other Operating Costs/Expenses |
(160,020) |
(108,279) |
47.8% |
(527,889) |
(393,753) |
34.1% |
Allowance for Doubtful Accounts |
(30,759) |
(18,691) |
64.6% |
(121,591) |
(77,365) |
57.2% |
Legal and Judicial Expenses |
(65,027) |
(82,722) |
-21.4% |
(246,956) |
(188,338) |
31.1% |
Others |
(64,234) |
(6,866) |
835.6% |
(159,341) |
(128,050) |
24.4% |
Cost of building the infrastructure |
(273,359) |
(269,179) |
1.6% |
(1,009,184) |
(877,409) |
15.0% |
Employee Pension Plans |
(11,075) |
(12,022) |
-7.9% |
(59,771) |
(48,088) |
24.3% |
Depreciation and Amortization |
(119,417) |
(112,333) |
6.3% |
(461,999) |
(441,987) |
4.5% |
Amortization of Concession's Intangible |
(5,014) |
(5,107) |
-1.8% |
(20,418) |
(20,441) |
-0.1% |
(909,038) |
(826,821) |
9.9% |
(3,357,432) |
(2,948,656) |
13.9% | |
EBITDA (IFRS)(1) |
345,451 |
1,014,395 |
-65.9% |
1,750,485 |
2,180,272 |
-19.7% |
EBIT |
221,019 |
896,955 |
-75.4% |
1,268,068 |
1,717,844 |
-26.2% |
FINANCIAL INCOME (EXPENSE) |
||||||
Financial Income |
408,535 |
164,909 |
147.7% |
1,155,473 |
552,918 |
109.0% |
Financial Expenses |
(298,173) |
(178,508) |
67.0% |
(1,299,554) |
(861,541) |
50.8% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
110,362 |
(13,598) |
- |
(144,080) |
(308,623) |
-53.3% | |
INCOME BEFORE TAXES ON INCOME |
331,382 |
883,357 |
-62.5% |
1,123,988 |
1,409,222 |
-20.2% |
Social Contribution |
(34,078) |
(70,022) |
-51.3% |
(109,055) |
(126,225) |
-13.6% |
Income Tax |
(99,418) |
(182,950) |
-45.7% |
(305,577) |
(335,038) |
-8.8% |
Net Income (IFRS) |
197,886 |
630,385 |
-68.6% |
709,355 |
947,958 |
-25.2% |
Note:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12.
Página 58 de 63
4Q15/2015 Results | March 21, 2016 |
(Pro forma, R$ thousands)
Consolidated | ||||||
|
4Q15 |
4Q14 |
Variation |
2015 |
2014 |
Variation |
OPERATING REVENUE |
||||||
Electricity Sales to Final Customers |
6,137,777 |
4,066,995 |
50.9% |
22,492,874 |
14,439,719 |
55.8% |
Electricity Sales to Distributors |
128,446 |
10,639 |
1107.3% |
850,429 |
230,620 |
268.8% |
Revenue from building the infrastructure |
273,359 |
269,179 |
1.6% |
1,009,184 |
877,409 |
15.0% |
Sectoral financial assets and liabilities |
194,554 |
357,293 |
- |
2,506,524 |
357,293 |
- |
Other Operating Revenues |
772,780 |
365,737 |
111.3% |
3,015,372 |
1,962,932 |
53.6% |
|
7,506,915 |
5,069,842 |
48.1% |
29,874,382 |
17,867,973 |
67.2% |
|
|
|
|
|||
DEDUCTIONS FROM OPERATING REVENUE |
(3,692,304) |
(1,394,444) |
164.8% |
(13,284,665) |
(4,979,726) |
166.8% |
NET OPERATING REVENUE |
3,814,611 |
3,675,398 |
3.8% |
16,589,717 |
12,888,247 |
28.7% |
|
||||||
COST OF ELECTRIC ENERGY SERVICES |
||||||
Electricity Purchased for Resale |
(2,386,403) |
(2,408,307) |
-0.9% |
(10,561,531) |
(8,018,226) |
31.7% |
Electricity Network Usage Charges |
(298,151) |
(49,253) |
505.4% |
(1,372,686) |
(394,115) |
248.3% |
|
(2,684,554) |
(2,457,560) |
9.2% |
(11,934,217) |
(8,412,341) |
41.9% |
OPERATING COSTS AND EXPENSES |
||||||
Personnel |
(167,148) |
(159,502) |
4.8% |
(654,490) |
(601,922) |
8.7% |
Material |
(24,564) |
(21,469) |
14.4% |
(94,361) |
(84,307) |
11.9% |
Outsourced Services |
(148,441) |
(138,930) |
6.8% |
(529,320) |
(480,750) |
10.1% |
Other Operating Costs/Expenses |
(160,020) |
(108,279) |
47.8% |
(478,077) |
(398,556) |
20.0% |
Allowance for Doubtful Accounts |
(30,759) |
(18,691) |
64.6% |
(121,591) |
(77,365) |
57.2% |
Legal and Judicial Expenses |
(65,027) |
(82,722) |
-21.4% |
(197,144) |
(188,338) |
4.7% |
Others |
(64,234) |
(6,866) |
835.6% |
(159,341) |
(132,854) |
19.9% |
Cost of building the infrastructure |
(273,359) |
(269,179) |
1.6% |
(1,009,184) |
(877,409) |
15.0% |
Employee Pension Plans |
(11,075) |
(12,022) |
-7.9% |
(59,771) |
(48,088) |
24.3% |
Depreciation and Amortization |
(119,417) |
(112,333) |
6.3% |
(461,999) |
(441,987) |
4.5% |
Amortization of Concession's Intangible |
(5,014) |
(5,107) |
-1.8% |
(20,418) |
(20,441) |
-0.1% |
(909,038) |
(826,821) |
9.9% |
(3,307,620) |
(2,953,460) |
12.0% | |
Adjusted EBITDA(1) |
345,451 |
508,457 |
-32.1% |
1,830,297 |
1,984,873 |
-7.8% |
EBIT |
221,019 |
391,017 |
-43.5% |
1,347,880 |
1,522,446 |
-11.5% |
FINANCIAL INCOME (EXPENSE) |
||||||
Financial Income |
408,535 |
170,718 |
139.3% |
1,155,473 |
622,843 |
85.5% |
Financial Expenses |
(298,173) |
(178,508) |
67.0% |
(1,299,554) |
(859,112) |
51.3% |
Interest on Equity |
- |
- |
- |
- |
- |
- |
110,362 |
(7,789) |
- |
(144,080) |
(236,270) |
-39.0% | |
INCOME BEFORE TAXES ON INCOME |
331,382 |
383,228 |
-13.5% |
1,203,800 |
1,286,176 |
-6.4% |
Social Contribution |
(34,078) |
(25,011) |
36.3% |
(116,238) |
(115,151) |
0.9% |
Income Tax |
(99,418) |
(57,918) |
71.7% |
(325,530) |
(304,277) |
7.0% |
Adjusted Net Income(2) |
197,886 |
300,300 |
-34.1% |
762,031 |
866,748 |
-12.1% |
Notes:
(1) Adjusted EBITDA considers, besides the items mentioned above, the sectoral financial assets and liabilities (previously called regulatory assets and liabilities)and excludes the non-recurring effects;
(2) Adjusted Net Income considers the sectoral financial assets and liabilities (previously called regulatory assets and liabilities) and excludes the non-recurring effects.
Página 59 de 63
4Q15/2015 Results | March 21, 2016 |
(R$ thousands)
Summary of Income Statement by Distribution Company (Pro-forma - R$ Thousands) | ||||||
CPFL PAULISTA | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
3,955,770 |
2,922,054 |
35.4% |
15,738,838 |
10,003,055 |
57.3% |
Net Operating Revenue |
1,981,170 |
2,152,010 |
-7.9% |
8,613,882 |
7,250,808 |
18.8% |
Cost of Electric Power |
(1,418,563) |
(1,293,106) |
9.7% |
(6,293,826) |
(4,893,509) |
28.6% |
Operating Costs & Expenses |
(485,029) |
(397,354) |
22.1% |
(1,728,118) |
(1,458,976) |
18.4% |
EBIT |
77,578 |
461,550 |
-83.2% |
591,938 |
898,323 |
-34.1% |
EBITDA (IFRS)(1) |
129,545 |
515,137 |
-74.9% |
806,791 |
1,109,568 |
-27.3% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
129,545 |
262,191 |
-50.6% |
806,791 |
952,747 |
-15.3% |
Financial Income (Expense) |
57,997 |
747 |
7667.0% |
(107,721) |
(136,942) |
-21.3% |
Income Before Taxes |
135,575 |
462,297 |
-70.7% |
484,217 |
761,381 |
-36.4% |
Net Income (IFRS) |
76,536 |
321,152 |
-76.2% |
298,203 |
502,719 |
-40.7% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
76,536 |
159,096 |
-51.9% |
298,203 |
408,845 |
-27.1% |
CPFL PIRATININGA | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
1,777,069 |
1,380,696 |
28.7% |
6,832,285 |
4,203,126 |
62.6% |
Net Operating Revenue |
869,765 |
1,038,319 |
-16.2% |
3,676,868 |
3,027,400 |
21.5% |
Cost of Electric Power |
(631,089) |
(585,778) |
7.7% |
(2,734,588) |
(2,038,699) |
34.1% |
Operating Costs & Expenses |
(165,475) |
(186,559) |
-11.3% |
(638,523) |
(626,926) |
1.8% |
EBIT |
73,201 |
265,981 |
-72.5% |
303,757 |
361,775 |
-16.0% |
EBITDA (IFRS)(1) |
94,515 |
289,183 |
-67.3% |
397,313 |
452,905 |
-12.3% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
94,515 |
123,471 |
-23.5% |
397,313 |
450,702 |
-11.8% |
Financial Income (Expense) |
23,133 |
(6,593) |
- |
24,668 |
(77,412) |
- |
Income Before Taxes |
96,334 |
259,388 |
-62.9% |
328,425 |
284,363 |
15.5% |
Net Income (IFRS) |
61,421 |
179,459 |
-65.8% |
211,637 |
187,715 |
12.7% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
61,421 |
65,954 |
-6.9% |
211,637 |
198,800 |
6.5% |
RGE | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
1,375,515 |
1,065,623 |
29.1% |
5,699,353 |
3,585,290 |
59.0% |
Net Operating Revenue |
748,504 |
797,608 |
-6.2% |
3,359,012 |
2,648,483 |
26.8% |
Cost of Electric Power |
(502,803) |
(483,308) |
4.0% |
(2,327,667) |
(1,676,606) |
38.8% |
Operating Costs & Expenses |
(192,491) |
(178,669) |
7.7% |
(766,445) |
(643,463) |
19.1% |
EBIT |
53,210 |
135,631 |
-60.8% |
264,901 |
328,414 |
-19.3% |
EBITDA (IFRS)(1) |
87,906 |
168,236 |
-47.7% |
399,813 |
457,247 |
-12.6% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
87,906 |
88,017 |
-0.1% |
399,813 |
394,396 |
1.4% |
Financial Income (Expense) |
34,615 |
(10,370) |
- |
(38,802) |
(83,571) |
-53.6% |
Income Before Taxes |
87,825 |
125,261 |
-29.9% |
226,099 |
244,843 |
-7.7% |
Net Income (IFRS) |
53,943 |
102,143 |
-47.2% |
145,804 |
177,672 |
-17.9% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
53,943 |
52,007 |
3.7% |
145,804 |
144,193 |
1.1% |
CPFL SANTA CRUZ | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
175,129 |
144,061 |
21.6% |
718,030 |
497,310 |
44.4% |
Net Operating Revenue |
97,987 |
113,122 |
-13.4% |
422,792 |
380,601 |
11.1% |
Cost of Electric Power |
(61,425) |
(53,666) |
14.5% |
(281,403) |
(207,796) |
35.4% |
Operating Costs & Expenses |
(33,851) |
(25,283) |
33.9% |
(100,036) |
(94,302) |
6.1% |
EBIT |
2,711 |
34,173 |
-92.1% |
41,353 |
78,504 |
-47.3% |
EBITDA (IFRS)(1) |
9,185 |
37,740 |
-75.7% |
57,727 |
92,447 |
-37.6% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
9,185 |
15,989 |
-42.6% |
57,727 |
64,060 |
-9.9% |
Financial Income (Expense) |
(20,387) |
2,125 |
- |
(22,194) |
(5,762) |
285.2% |
Income Before Taxes |
(17,675) |
36,297 |
- |
19,159 |
72,742 |
-73.7% |
Net Income (IFRS) |
(12,138) |
25,887 |
- |
12,424 |
49,052 |
-74.7% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
(12,138) |
11,977 |
- |
12,424 |
31,280 |
-60.3% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
(2) EBITDA (IFRS + Sectoral Financial Assets & Liabilities) considers, besides the items mentioned above, the sectoral financial assets and liabilities (previously called regulatory assets and liabilities);
(3) Net Income (IFRS + Sectoral Financial Assets & Liabilities) considers the sectoral financial assets and liabilities (previously called regulatory assets and liabilities).
Página 60 de 63
4Q15/2015 Results | March 21, 2016 |
Summary of Income Statement by Distribution Company (Pro-forma - R$ Thousands) | ||||||
CPFL LESTE PAULISTA | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
49,821 |
23,731 |
109.9% |
199,386 |
113,633 |
75.5% |
Net Operating Revenue |
28,161 |
17,686 |
59.2% |
118,083 |
87,530 |
34.9% |
Cost of Electric Power |
(15,417) |
(8,994) |
71.4% |
(66,838) |
(40,958) |
63.2% |
Operating Costs & Expenses |
(9,211) |
(12,418) |
-25.8% |
(32,807) |
(35,794) |
-8.3% |
EBIT |
3,533 |
(3,726) |
- |
18,438 |
10,778 |
71.1% |
EBITDA (IFRS)(1) |
6,291 |
(2,300) |
- |
25,016 |
16,317 |
53.3% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
6,291 |
4,507 |
39.6% |
25,016 |
20,487 |
22.1% |
Financial Income (Expense) |
5,206 |
(130) |
- |
2,669 |
(439) |
- |
Income Before Taxes |
8,739 |
(3,856) |
- |
21,106 |
10,339 |
104.1% |
Net Income (IFRS) |
5,668 |
(1,855) |
- |
13,556 |
7,173 |
89.0% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
5,668 |
2,586 |
119.2% |
13,556 |
9,725 |
39.4% |
CPFL SUL PAULISTA | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
66,615 |
33,660 |
97.9% |
269,786 |
148,150 |
82.1% |
Net Operating Revenue |
35,102 |
24,451 |
43.6% |
149,771 |
110,624 |
35.4% |
Cost of Electric Power |
(21,179) |
(12,053) |
75.7% |
(88,441) |
(53,405) |
65.6% |
Operating Costs & Expenses |
(10,952) |
(13,493) |
-18.8% |
(40,812) |
(40,021) |
2.0% |
EBIT |
2,972 |
(1,095) |
- |
20,519 |
17,199 |
19.3% |
EBITDA (IFRS)(1) |
6,470 |
316 |
1948.8% |
28,071 |
22,628 |
24.1% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
6,470 |
4,782 |
35.3% |
28,071 |
26,275 |
6.8% |
Financial Income (Expense) |
7,959 |
908 |
776.6% |
5,161 |
(377) |
- |
Income Before Taxes |
10,930 |
(187) |
- |
25,679 |
16,822 |
52.7% |
Net Income (IFRS) |
6,700 |
332 |
1915.1% |
16,201 |
11,351 |
42.7% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
6,700 |
3,198 |
109.5% |
16,201 |
13,593 |
19.2% |
CPFL JAGUARI | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
72,166 |
37,219 |
93.9% |
282,608 |
145,399 |
94.4% |
Net Operating Revenue |
35,325 |
26,994 |
30.9% |
145,343 |
105,516 |
37.7% |
Cost of Electric Power |
(26,168) |
(17,154) |
52.5% |
(108,265) |
(70,436) |
53.7% |
Operating Costs & Expenses |
(6,812) |
(8,013) |
-15.0% |
(25,723) |
(27,370) |
-6.0% |
EBIT |
2,345 |
1,827 |
28.3% |
11,355 |
7,711 |
47.3% |
EBITDA (IFRS)(1) |
3,953 |
2,647 |
49.3% |
15,394 |
10,872 |
41.6% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
3,953 |
3,153 |
25.4% |
15,394 |
15,917 |
-3.3% |
Financial Income (Expense) |
2,730 |
(193) |
- |
(3,074) |
(3,970) |
-22.6% |
Income Before Taxes |
5,076 |
1,635 |
210.5% |
8,281 |
3,740 |
121.4% |
Net Income (IFRS) |
3,165 |
1,155 |
173.9% |
4,852 |
2,027 |
139.3% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
3,165 |
1,489 |
112.5% |
4,852 |
5,175 |
-6.3% |
CPFL MOCOCA | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Gross Operating Revenue |
38,633 |
20,706 |
86.6% |
149,858 |
88,887 |
68.6% |
Net Operating Revenue |
22,072 |
15,347 |
43.8% |
88,446 |
67,491 |
31.0% |
Cost of Electric Power |
(11,126) |
(6,257) |
77.8% |
(45,799) |
(28,150) |
62.7% |
Operating Costs & Expenses |
(5,477) |
(6,477) |
-15.4% |
(26,839) |
(24,200) |
10.9% |
EBIT |
5,468 |
2,613 |
109.3% |
15,808 |
15,141 |
4.4% |
EBITDA (IFRS)(1) |
7,585 |
3,437 |
120.7% |
20,360 |
18,286 |
11.3% |
EBITDA (IFRS + Sectoral Financial Assets & Liabilities)(2) |
7,585 |
6,346 |
19.5% |
20,360 |
20,986 |
-3.0% |
Financial Income (Expense) |
(890) |
(92) |
872.2% |
(4,787) |
(150) |
3101.5% |
Income Before Taxes |
4,578 |
2,521 |
81.6% |
11,021 |
14,992 |
-26.5% |
Net Income (IFRS) |
2,592 |
2,111 |
22.8% |
6,679 |
10,248 |
-34.8% |
Net Income (IFRS + Sectoral Financial Assets & Liabilities)(3) |
2,592 |
3,991 |
-35.0% |
6,679 |
11,888 |
-43.8% |
Notes:
(1) EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization;
(2) EBITDA (IFRS + Sectoral Financial Assets & Liabilities) considers, besides the items mentioned above, the sectoral financial assets and liabilities (previously called regulatory assets and liabilities);
(3) Net Income (IFRS + Sectoral Financial Assets & Liabilities) considers the sectoral financial assets and liabilities (previously called regulatory assets and liabilities).
Página 61 de 63
4Q15/2015 Results | March 21, 2016 |
CPFL Paulista | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
2,350 |
2,362 |
-0.5% |
9,027 |
9,192 |
-1.8% |
Industrial |
964 |
1,074 |
-10.2% |
3,834 |
4,142 |
-7.4% |
Commercial |
1,376 |
1,403 |
-1.9% |
5,187 |
5,323 |
-2.6% |
Others |
1,059 |
1,088 |
-2.7% |
4,021 |
4,196 |
-4.2% |
Total |
5,750 |
5,927 |
-3.0% |
22,068 |
22,853 |
-3.4% |
CPFL Piratininga | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
956 |
998 |
-4.2% |
3,916 |
4,036 |
-3.0% |
Industrial |
520 |
589 |
-11.8% |
2,089 |
2,265 |
-7.8% |
Commercial |
554 |
557 |
-0.6% |
2,169 |
2,158 |
0.5% |
Others |
268 |
270 |
-0.4% |
1,062 |
1,073 |
-1.1% |
Total |
2,298 |
2,414 |
-4.8% |
9,236 |
9,532 |
-3.1% |
RGE | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
597 |
623 |
-4.2% |
2,462 |
2,505 |
-1.7% |
Industrial |
387 |
437 |
-11.4% |
1,540 |
1,692 |
-9.0% |
Commercial |
330 |
356 |
-7.4% |
1,344 |
1,391 |
-3.4% |
Others |
653 |
678 |
-3.6% |
2,664 |
2,699 |
-1.3% |
Total |
1,967 |
2,093 |
-6.1% |
8,011 |
8,288 |
-3.3% |
CPFL Santa Cruz | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
88 |
90 |
-2.3% |
352 |
358 |
-1.6% |
Industrial |
44 |
47 |
-6.4% |
179 |
183 |
-2.2% |
Commercial |
42 |
44 |
-3.9% |
164 |
170 |
-3.5% |
Others |
85 |
101 |
-16.3% |
347 |
386 |
-10.2% |
Total |
259 |
282 |
-8.2% |
1,042 |
1,097 |
-5.0% |
CPFL Jaguari | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
22 |
23 |
-1.2% |
88 |
89 |
-0.9% |
Industrial |
80 |
85 |
-5.7% |
315 |
323 |
-2.6% |
Commercial |
13 |
14 |
-1.9% |
51 |
51 |
-0.4% |
Others |
10 |
10 |
-1.9% |
38 |
39 |
-2.7% |
Total |
126 |
131 |
-4.3% |
492 |
502 |
-2.1% |
CPFL Mococa | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
19 |
19 |
1.0% |
75 |
75 |
0.6% |
Industrial |
9 |
10 |
-11.5% |
36 |
40 |
-11.6% |
Commercial |
8 |
9 |
-1.9% |
32 |
33 |
-1.8% |
Others |
16 |
16 |
-1.8% |
61 |
63 |
-3.7% |
Total |
52 |
54 |
-2.6% |
204 |
211 |
-3.4% |
CPFL Leste Paulista | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
25 |
25 |
-0.7% |
99 |
100 |
-0.9% |
Industrial |
7 |
7 |
-4.0% |
28 |
27 |
3.4% |
Commercial |
12 |
12 |
0.5% |
46 |
46 |
-0.2% |
Others |
28 |
31 |
-10.2% |
111 |
122 |
-8.8% |
Total |
72 |
76 |
-4.7% |
285 |
296 |
-3.7% |
CPFL Sul Paulista | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
36 |
36 |
-1.4% |
144 |
146 |
-1.3% |
Industrial |
24 |
23 |
4.6% |
96 |
84 |
14.4% |
Commercial |
15 |
15 |
-2.8% |
59 |
59 |
0.2% |
Others |
23 |
23 |
-1.2% |
93 |
93 |
-0.3% |
Total |
98 |
98 |
-0.2% |
392 |
382 |
2.6% |
Página 62 de 63
4Q15/2015 Results | March 21, 2016 |
12.14) Sales to the Captive Market by Distributor (in GWh)
CPFL Paulista | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
2,350 |
2,362 |
-0.5% |
9,027 |
9,192 |
-1.8% |
Industrial |
2,745 |
3,019 |
-9.1% |
11,007 |
11,782 |
-6.6% |
Commercial |
1,519 |
1,542 |
-1.5% |
5,743 |
5,809 |
-1.1% |
Others |
1,095 |
1,123 |
-2.5% |
4,153 |
4,332 |
-4.1% |
Total |
7,709 |
8,045 |
-4.2% |
29,929 |
31,114 |
-3.8% |
CPFL Piratininga | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
956 |
998 |
-4.2% |
3,916 |
4,036 |
-3.0% |
Industrial |
1,789 |
1,992 |
-10.2% |
7,422 |
8,021 |
-7.5% |
Commercial |
619 |
623 |
-0.8% |
2,430 |
2,401 |
1.2% |
Others |
281 |
280 |
0.5% |
1,109 |
1,118 |
-0.8% |
Total |
3,645 |
3,893 |
-6.4% |
14,877 |
15,577 |
-4.5% |
RGE | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
597 |
623 |
-4.2% |
2,462 |
2,505 |
-1.7% |
Industrial |
846 |
953 |
-11.3% |
3,391 |
3,696 |
-8.3% |
Commercial |
349 |
377 |
-7.4% |
1,421 |
1,475 |
-3.6% |
Others |
653 |
678 |
-3.6% |
2,664 |
2,699 |
-1.3% |
Total |
2,445 |
2,631 |
-7.1% |
9,939 |
10,376 |
-4.2% |
CPFL Santa Cruz | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
88 |
90 |
-2.3% |
352 |
358 |
-1.6% |
Industrial |
56 |
58 |
-4.6% |
225 |
228 |
-1.3% |
Commercial |
42 |
44 |
-3.8% |
165 |
170 |
-3.5% |
Others |
85 |
101 |
-16.3% |
347 |
386 |
-10.2% |
Total |
271 |
294 |
-7.8% |
1,088 |
1,142 |
-4.7% |
CPFL Jaguari | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
22 |
23 |
-1.2% |
88 |
89 |
-0.9% |
Industrial |
103 |
101 |
2.4% |
389 |
394 |
-1.1% |
Commercial |
13 |
14 |
-1.9% |
51 |
51 |
-0.4% |
Others |
10 |
10 |
-1.9% |
38 |
39 |
-2.7% |
Total |
149 |
147 |
1.2% |
566 |
573 |
-1.1% |
CPFL Mococa | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
19 |
19 |
1.0% |
75 |
75 |
0.6% |
Industrial |
17 |
17 |
0.3% |
62 |
67 |
-7.3% |
Commercial |
8 |
9 |
-1.9% |
32 |
33 |
-1.8% |
Others |
16 |
16 |
-1.8% |
61 |
63 |
-3.7% |
Total |
60 |
60 |
-0.4% |
230 |
238 |
-3.1% |
CPFL Leste Paulista | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
25 |
25 |
-0.7% |
99 |
100 |
-0.9% |
Industrial |
20 |
20 |
2.8% |
78 |
75 |
4.2% |
Commercial |
12 |
12 |
0.5% |
46 |
46 |
-0.2% |
Others |
28 |
31 |
-10.2% |
111 |
122 |
-8.8% |
Total |
86 |
88 |
-3.1% |
334 |
343 |
-2.5% |
CPFL Sul Paulista | ||||||
|
4Q15 |
4Q14 |
Var. |
2015 |
2014 |
Var. |
Residential |
36 |
36 |
-1.4% |
144 |
146 |
-1.3% |
Industrial |
67 |
84 |
-21.1% |
300 |
303 |
-1.1% |
Commercial |
15 |
15 |
-2.8% |
59 |
59 |
0.2% |
Others |
23 |
23 |
-1.2% |
93 |
93 |
-0.3% |
Total |
141 |
160 |
-11.9% |
595 |
601 |
-0.9% |
Página 63 de 63
CPFL ENERGIA S.A. | ||
|
By: |
/S/ GUSTAVO ESTRELLA
|
Name: Title: |
Gustavo Estrella Chief Financial Officer and Head of Investor Relations |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.