CEMIG GERAÇÃO E TRANSMISSÃO S.A. Elmar de Oliveira Santana Director of Generation and Transmission Belo Horizonte, May 13, 2005

Transcrição

1 CEMIG GERAÇÃO E TRANSMISSÃO S.A. Elmar de Oliveira Santana Director of Generation and Transmission Belo Horizonte, May 13, 2005

2 1. INTRODUCTION 2. PRELIMINARY INFORMATION 3. THE GENERATION BUSINESS 4. THE TRANSMISSION BUSINESS 5. RESULTS 6. STRATEGIC DIRECTION 2

3 3 1. INTRODUCTION MEETING TARGETS ADDING VALUE FOR STOCKHOLDERS

4 4 2. PRELIMINARY INFORMATION 2.1 Organizational structure 2.2 Staff 2.3 Management model

5 5 2.1 ORGANIZATIONAL STRUCTURE CEMIG GERAÇÃO E TRANSMISSÃO S.A. IN THE NEW ORGANIZATIONAL STRUCTURE CEMIG CEMIG Holding Holding CEMIG D 100% CEMIG GT 100% GASMIG 55% INFOVIAS 100% Independent production: various stockholdings Efficientia 100% Consortia: various stakes

6 6 2.2 STAFF Transmission 466 employees 31.47% Directors' offices 2 employees 0.14% Transmission workshops 95 employees 6.41% Generation workshops 117 employees 7.90% Generation 801 employees 54.09% We operate the generation and transmission business with a staff of 1,481 people.

7 2.3 GENERATION AND TRANSMISSION: MANAGEMENT MODEL ANALYSIS OF STRATEGIC DIRECTION BSC Annual analyses: 4. Programmed Management MANAGEMENT TOOLS Monthly Report Monthly Tactical-Operational Business Analysis. Good morning Technical/ Management monthly report. Daily Operational Analysis 7

8 The Generation business 8

9 9 3. THE GENERATION BUSINESS 3.1 Power plants 3.2 Operational information 3.3 Capex

10 3.1 POWER PLANTS ASSETS

11 Cemig s power plants 53 Power plants in operation Installed Capacity: 5,951 MW (average) Assured Energy: 3,602 MW (average) 4 power plants under construction LATEST ACQUISITION: ROSAL HYDRO PLANT Large hydroelectric plants (16) Small hydroelectric plants (32) Thermal plants (4) Wind station (1) Under construction (4) Data for April

12 CEMIG PLANTS IN SANTA CATARINA 2 hydroelectric plants Installed capacity: 10.0 MW

13 3.2 OPERATIONAL INFORMATION

14 SOUTH-EAST/CENTRE-WEST : ENERGY STORED % OF POTENTIAL VOLUME JAN. 91 TO APR

15 3.2 ENERGY STORED Cemig reservoirs Camargos Três Marias Nova Ponte Emborcação São Simão 30/04/ /04/ /04/ % of potential volume 15

16 3.2 ANNUAL ACCUMULATED AVAILABILITY OF THE MAJOR PLANTS BETTER PERFORMANCE availability, %

17 OFF-POWER PERCENTAGES IN MAJOR POWER PLANTS BETTER PERFORMANCE 3 Breakdown rate Year

18 INSTALLED CAPACITY OF THE MAIN OPERATING PLANTS Plants Installed capacity Expiry of (MW) concession São Simão 1, Emborcação 1, Nova Ponte Jaguara Miranda Três Marias Volta Grande TOTAL 5,020 Re: April 2005 THE 7 LARGEST PLANTS HAVE 84.36% OF THE TOTAL INSTALLED CAPACITY OF THE GENERATION BUSINESS. APPLICATION FOR RENEWAL OF THE CONCESSIONS TO OPERATE THE EMBORCAÇÃO AND NOVA PONTE PLANTS HAS BEEN FILED WITH ANEEL. DUE TO OUR TRACK RECORD, WE DO NOT EXPECT ANY PROBLEM WITH RENEWAL OF THE CONCESSIONS.

19 ACTIONS TO ADD VALUE Automation/monitoring of facilities; Introduction of production support centers (regional); New maintenance methodology MBC, in Generation; Business focus sale of assets that are not necessary for generation or value (villages, open land, etc.); Reduction of value of equipment insurance policies; Reform and modernization of facilities; Electronic surveillance of facilities.

20 3.3 CAPITAL EXPENDITURE

21 CAPEX OF R$ 176 MILLION Spending on reform and improvements to ensure the operation s efficiency. Modernization of Três Marias R$ 53 million 2004 to 2007; Modernization of Jaguara R$ 36 million 2002 to 2008; Billing measurement R$ 19 million 2005 to 2006; Jaguara transformers R$ 22 million 2005 to 2009; Salto Grande generator R$ 28 million 2005 to 2009; Other R$18 million 2005 to These are investments with guaranteed return; The investment in billing measurement is a demand made by the regulator.

22 REFORM AND MODERNIZATION OF GENERATING PLANTS Jaguara Plant

23 AUTOMATION, MODERNIZATION AND REFORM OF THE UNITS TRÊS MARIAS UNIT

24 The Transmission business

25 25 4. THE TRANSMISSION BUSINESS 4.1 Substations and lines 4.2 Operational information 4.3 Capex

26 4.1 SUBSTATIONS AND TRANSMISSION LINES

27 COMPOSITION OF CEMIG S BASIC GRID 33 substations Installed capacity 15,468 MVA 59 transmission lines (230 to 500 kv) 4,857 km of transmission lines Montes Claros 2 Pirapora 1 V. Palma 2 São Simão Água Vermelha o Três Marias Emborcação o Itumbiara São G. Valadares 2 Gotardo 2 Porto Estrela Nova Ponte Itabira 2 Mesquita C. Pena Bom GA Ipatinga 1 Vespasiano 2 o Jaguara 500 Despacho 3 Timóteo Neves 1 Nova Era 2 Barreiro 1 J. Monlevade 2 Volta Grande S. G. Taquaril Jaguara 345 o Pará Estreito Ouro Preto 2 B. Cocais 2 Pimenta C. Lafaiete 1 SUBESTAÇÃO CEMIG SUBESTAÇÃO DE OUTRAS CONCESSIONÁRIAS Itutinga Barbacena 2 J. Fora 1 LT 5OOkV Itajubá 3 LT 345kV LT 23OkV

28 TRANMISSION LINES 21 lines at 230 kv 750 km 21 lines at 345 kv 1,924 km 17 lines at 500 kv 2,175 km

29 29 Montes Claros 2 Montes Claros 2 São Simão Água Vermelha Itumbiara Miranda Igarapava Volta Grande Marimbondo Porto Colômbia Samambaia Emborcação Volta Grande Nova Ponte São Gotardo 2 2 Nova Ponte Mascarenhas Moraes Furnas UT Ibiritermo Bom Despacho Bom 3 Jaguara Jaguara Despacho 3 LCBarreto Poços Caldas Pimenta Funil Itutinga Itutinga (Fu) Várzea Palma 1 Três Marias Barreiro 1 UT Igarapé Itutinga (CM) Itutinga (Fu) Itajubá 3 Várzea Palma 1 Três Marias Barão Cocais 2 João Monlevade 2 Ouro Preto 2 São São Gonçalo Gonçalo Pará Pará Lafaiete Camargos Itutinga (CM) Lafaiete 1 UT Juiz Fora Candonga Barbacena 2 G. Valadares 2 Vespasiano 2 2 Neves 1 1 Mesquita Mascarenhas Porto Estrela Estrela Barreiro 1 Taquaril Itabira 2 2 Ipatinga 1 Itutinga Barbacena 2 Juiz Fora 1 Cachoeira Paulista G. Valadares 2 N.Era 2 Conselheiro Pena Guilman Amorim Vitória 5OO kv 345 kv 23O kv KEY CEMIG PLANTS PLANTS OF OTHER CONCESSION HOLDERS CEMIG SUBSTATIONS SUBSTATIONS OF OTHER CONCESSION HOLDERS

30 4.2 OPERATIONAL INFORMATION

31 INDICATOR: TRANSFORMER AVAILABILITY BETTER PERFORMANCE % 97.49% 97.27% Better MAR/2005

32 INDICATOR: HIGH-VOLTAGE AVAILABILITY BETTER PERFORMANCE % 99.81% 99.99% MAR/2005 Better

33 ACTIONS TO ADD VALUE Automation/monitoring of facilities (Sinocon Project) ; Modernization of the System Operation Center (COS); Participation in auctions to acquire new transmission assets, through consortia Strengthening of the transmission system; Reform and improvement of facilities; Reduction of value of equipment insurance policies;

34 4.2 OPERATION CENTER OF THE COS SYSTEM

35 4.2 OPERATING HEIRACHY- COS CNOS COD NORTE MONTES CLAROS COD TRIÂNGULO UBERLÂNDIA COS COD LESTE GOV. VALADARES COD OESTE DIVINÓPOLIS COD METROPOLITANO BELO HORIZONTE COD MANTIQUEIRA JUIZ DE FORA COD SUL POUSO ALEGRE 35

36 COS: HIGH DEGREE OF AUTOMATION Transmission substations and large power plants are supervised and remotely controlled directly by the System Operation Center (COS). Use of technology for management of the electrical power system (optimization of costs, reliability of operation, safety of personnel and equipment). The System Operation Center (COS) has ISO 9001:2000 Certification.

37 4.2 CURRENT SERVICE LEVELS: LOAD IN THE MINAS AREA 6000 Load in Minas Gerais 5500 MW Average forecast Revised forecast

38 4.3 CAPITAL EXPENDITURE

39 4.3 NEW INVESTMENTS February 2005 auction WITH GUARANTEED REVENUE CONSORTIUM: TRANSLESTE Line: Irapé (MG)- Montes Claros 2 (MG) 345kV The Consortium consists of the companies Alusa Cia. Técnica de Engenharia Elétrica (Brazil). Furnas Centrais Elétricas SA do Brazil. Companhia Energética de Minas Gerais (CEMIG) and ORTENG Equipamentos e Sistemas Ltda (Brazil).

40 4.3 NEW INVESTMENTS March 2005 AUCTION WITH GUARANTEED REVENUE CONSORTIUM: TRANSCENTROESTE Furnas-Pimenta 345 Kv transmission line (CEMIG:51%, FURNAS:49%) CONSORTIUM: TRANSUDESTE Itutinga-Juiz de Fora 345 kv transmission line (Alusa:41%, ORTENG:10%. Furnas:25%, CEMIG:24%).

41 4.3 NEW INVESTMENTS March 2005 auction WITH GUARANTEED REVENUE CONSORTIUM: TRANSIRAPÉ Trsnsmission line: Irapé(MG) - Araçuai(MG) 345kV, Araçuaí Substation (MG). The Consortium is made up of the companies Alusa Cia.Técnica de Engenharia Elétrica (Brazil). Furnas Centrais Elétricas SA do Brazil. Companhia Energética de Minas Gerais CEMIG and ORTENG - Equipamentos e Sistemas Ltda. (Brazil).

42 4.3 Area of operation 42

43 INVESTMENT OF R$ 94.3 MILLION Investment in strengthening and improvements Strengthening of transmission system - R$ 60.5 million 2005 to 2006; Construction of the Aimorés-Mascarenhas transmission line 230kV R$ 8 million 2005 to 2006; Recapacitation of 230kV transmission lines R$ 3.5 million 2005 to 2006; Sinocon Project R$ 10 million 2005 to 2006; Modernization of COS R$ 3.8 million 2001 to 2007; Refurbishments and improvements R$ 8.5 million Investments in a stronger transmission network, with revenue guaranteed by the regulator.

44 5. RESULTS Income Statement st Quarter 2005 Income Statement comparables

45 5.1 INCOME STATEMENT 2004 GENERATION AND TRANSMISSION BUSINESS R$ 000 GROSS OPERATIONAL REVENUE 1,876,691 DEDUCTIONS FROM REVENUES -122,474 NET OPERATIONAL REVENUE 1,754,217 OPERATIONAL EXPENSES -610,185 PROFIT BEFORE FINANCIAL REVENUE/EXPENSES 1,144,032 FINANCIAL REVENUE (EXPENSES) -180,104 OPERATIONAL PROFIT 963,928 NON OPERATIONAL REVENUE (EXPENSES) -3,885 PRE-TAX PROFIT 960,043 DEDUCTIONS FROM PROFIT -285,070 NET PROFIT FOR THE PERIOD 674,973 EBITDA MARGIN EBITDA 1,275,600 SOURCE: MANAGEMENT REPORT AND FINANCIAL STATEMENTS 45

46 ST QUARTER 2005 INCOME STATEMENT CEMIG GERAÇÃO E TRANSMISSÃO S.A. 2005, R$ 000 GROSS OPERATIONAL REVENUE 572,281 DEDUCTIONS FROM REVENUES -111,194 NET OPERATIONAL REVENUE 461,087 OPERATIONAL EXPENSES -179,953 PROFIT BEFORE FINANCIAL REVENUE/EXPE 281,134 FINANCIAL REVENUE (EXPENSES) -71,204 OPERATIONAL PROFIT 209,930 NON OPERATIONAL REVENUE (EXPENSES) -929 PRE-TAX PROFIT 209,001 DEDUCTIONS FROM PROFIT -69,393 NET PROFIT FOR THE PERIOD 139,608 EBITDA MARGIN EBITDA 326,671

47 : COMPARISONS WITH OTHER BRAZILIAN OPERATORS Ebitda margin, Costs and Operational expenses INDICATOR CEMIG Geração e Transmissão FURNAS COPEL Geração e Transmissão CHESF TRACTEBEL AES TIÊTE Ebitda margin 72.73% 32.09% 43.55% 78.35% 44.7% 79.2% Costs and Operational expenses (R$ million) , ,

48 48 6. STRATEGIC MANAGEMENT DIRECTIONS FOR GENERATION AND TRANSMISSION

49 49 6. STRATEGIC DIRECTIONS 6.1 Generation business 6.2 Transmission business

50 STRATEGY OF THE GENERATION BUSINESS Growth CEMIG should grow, as far as the regulatory limit, via acquisition or construction of plants. Partnerships CEMIG should seek complementarity in its partnerships. Risks CEMIG should seek to minimize social-environmental costs and risks, and construction costs and risks.

51 STRATEGY OF THE GENERATION BUSINESS Sales CEMIG should diversify its contracts to sell energy derived from existing plants. Operational efficiency Seek continuous reduction of operational costs.

52 STRATEGY OF THE TRANSMISSION BUSINESS Growth CEMIG should grow, aiming to be among Brazil s 5 largest companies in the transmission business in terms of permitted revenue. Partnerships CEMIG should seek complementarity in its partnerships. Financing Institutional activity to obtain cheaper financing sources. Operational efficiency Seek continuous reduction of operational costs.

53 53 MEETING TARGETS ADDING VALUE FOR STOCKHOLDERS - Thank you!