AES Eletropaulo Announces Adjusted EBITDA of R$ 1.5 Billion in 2014

USA - English

• Brazil - Português

BARUERI, Brazil, Feb. 25, 2015 /PRNewswire/ -- 2014 was another challenging year for the electricity sector. The country has experienced extreme weather events with high temperatures, less rainfall and strong winds. Even in this challenging scenario AES Eletropaulo (BM&FBOVESPA: ELPL3, ELPL4) continued to carry out its investment projects, which reached R$ 583 million in the year, as a result of commitment to customer satisfaction and service to our customers.

In this context, the Company reduced the SAIFI by 12.7% in comparison to 2013, reaching 3.81 times. The SAIDI reached 8.86 hours in 2014, a 10.9% increase in comparison to 2013, reflecting the higher incidence of intense climatic events, mainly in the last days of the year. The losses fell by 0.34 p.p., and ended the year at 9.7%.

The high temperatures recorded mainly during the first quarter of the year, contributed to the performance of the captive market, which grew 0.9% in 2014, reflecting the performance of residential, commercial and other classes, that grew 0.8 %, 4.0% and 1.4%, respectively. In the same period, captive industrial class decreased 5.5% due economic slowdown.

With respect to the financial performance, we continue to work with focus on cost management, discipline in execution and efficient use of resources. Net revenue grew 14.1% in the year, to R$ 10.3 billion in 2014, the non-manageable expenses increased 35.4% in the period and the PMSO decreased by 2.3%. Adjusted EBITDA reached R$ 1.5 billion and adjusted net loss was R$ 379 million. The pressure on Company's cash flow because of higher energy costs was partly relieved by fund transfers from National Treasury through CDE and bank loans through ACR.

For 2015, the mechanisms available to minimize the variability in the Distribution Company's results and cash flow are: recognition of regulatory assets and liabilities and tariff flags, besides items under discussion, such as extraordinary tariff adjustment and expansion of tariff flags. In order to align the tariff cycles to the country's regulatory reality the 4^th cycle WACC was defined at 8.09% and there is expectation of remuneration related to special obligations and review of the regulatory operating cost parameters.

Webcast

PRESENTATION:
Britaldo Soares – Chief Executive Officer
Francisco Morandi – Vice-President Director and Investor Relations Officer

DATE: February 26^th, 2015
TIME: 10:00 (BR) / 08:00 a.m. (EST)

CONNECTION:                    

• Brazil: +55-11-3193-1001 or +55-11-2820-4001
• USA/Other countries: +1-888-700-0802

SIMULTANEOUS INTERPRETATION INTO ENGLISH. 

CODE: AES Eletropaulo

CONTACT: Investor Relations: f. +55-11-2195-7048

SOURCE AES Eletropaulo