Energias do Brasil SA and subsidiaries - EDP no Brasil | Investidores

16
2009 MANAGEMENT REPORT
tariff adjustments made in August 2009 (EDP Escelsa) and October 2009 (EDP Bandeirante). We
point out that the consolidated amounts of 2008 still include Enersul.
In sales, the reduction of EBITDA in relation to 2008 results from the reduction of margin due to the
financial crisis and unusual hydrological condition.
• Financial result
The consolidated net financial result in 2009 was negative by R$ 165.7 million, which represents
an improvement in relation to the negative result of R$ 320.9 million in 2008. The following
contributed toward this result: (i) positive financial revenue due to the recording of R$ 74.8 million
related to the recovery of credits held by the Company against ESC 90; (ii) lower Selic rate
resulting in the reduction of income and expenses; (iii) lower interest on own capital; and (iv) net
foreign exchange result reflects the appreciation of the Real against the dollar.
• Net income
Due to the effects analyzed, consolidated net income attained R$ 625.1 million in 2009, 60.8%
greater than in 2008. This result reflects the positive impact of R$ 121 million in 2009 related to the
disposal of ESC 90 and the negative impact of R$ 129 million in 2008 related to the additional
amortization of goodwill at Enersul.
• Indebtedness
The consolidated gross debt totaled R$ 3,138.3 million in December 2009, virtually stable in
relation to December 2008.
The net debt, adjusted based on cash/investment amounts and on the net balance of regulatory
assets, reached R$ 1,985.3 million in December 2009, which is 19% lower compared to December
2008, mainly due to the increase of the cash/investment balance at the end of 2009. The
consolidated position of cash/investments increased to R$ 1,102.0 million due to the following
factors: a) conclusion of the offer of shares totaling R$ 442 million, which was used for payment of
debt contracted at the time of the swap of assets in the amount of R$ 250 million; b) disbursement
by the BNDES and IDB of long-term loans to Porto do Pecém I, in the amounts of R$ 700 million
and US$ 260 million, respectively. The IDB fund was used to pay the bridge loan of the project; c)
release by the BNDES of R$ 86.4 million to EDP Bandeirante and R$ 103.8 million to EDP Escelsa
in connection with CALC; and d) amortizations of debentures of EDP Bandeirante, EDP Escelsa
and Investco during 2009.
With the payment of debt related to the withdrawal right, the BNDES and IDB disbursements to
Porto do Pecém I, with respective payment of the bridge loan and releases of CALC to EDP
Bandeirante and EDP Escelsa, the average term of the consolidated debt increased from 3 years
to 4.3 years.
Of the total gross debt at the end of December 2009, 7.6% were denominated in foreign currency,
99.2% of which protected against exchange variance by means of hedge instruments, resulting in
net exposure of 0.1%.
Said long-term loan in US$, in turn, has already been subject to the contracting both of exchange
hedge and of an interest rate swap (from Libor to fixed rate).
The average cost of the Group's debt was 7.5% per year. The net debt /EBITDA ratio closed the
month of December at 1.4 times.
Short-term debt amounts to R$ 782 million falling due in 2010. Of this total, R$ 513 million refer to
distribution and R$ 269 million to generation. In distribution, there are promissory notes of EDP