Transmissora Alianca de Energia Eletrica SA
BOVESPA:TAEE3
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Transmissora Alianca de Energia Eletrica SA
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Good morning, everyone. Thank you for waiting. You are welcome to the video conference of publicizing the results of the fourth quarter of Taesa. Those who need simultaneous translation, we have this tool available on the platform. [Operator Instructions]
We are recording this conference, and it will be available on the website of the company. A full material of the results is available there. You can also download the presentation on the chat icon. [Operator Instructions] The highlight of the questions can also be sent during the presentation, and they will be read by one of our managers and they will be responded by the panelist.
The information that is in this presentation and other declarations that might be made during this video conference about effects of business, rejections, aims that involves financial information, premises of the company as well as currently available information. These are not guarantee of performance. They involve risks and uncertainties and premises, and it has to with the future depending on circumstances that might or not happen. General economic conditions, market conditions and another operational factors can affect the performance in the future and they can produce results that are different from those expressed here in our events.
Now, I'm going to give the floor to Andre Moreira, who is the CEO of our company.
Good morning to everyone. It's wonderful to be here with you for us to present the results of Taesa and to participate in our video conference about the results of the last quarter and the whole year of 2021. We have the Financial Director here, Erik Breyer; Business in Participation Fabio Fernandes; Implementation Results and the Technical Director, Marco Faria; and all our team of Investor Relations.
Just to remind you, you can send your questions with the Q&A button on the platform, and you can do this during the presentation. Okay?
Before we speak about the results of the quarter, I would like to take this moment to share some important messages, especially about 2021, a year managed by this new administration, many challenges, many achievements. We have already the fruits of our strategic planning long term approved in 2021 and all the actions in the beginning, the improvement in safety, performance, optimizing costs and increasing efficiency.
Important to remember that our strategic planning is based on the pillars of competitiveness, efficiency, growth, regulatory management and sustainability. In growth, we had a different positioning in the transmission market, especially in our participation in the 2 auctions of ANEEL last year. In December, we were winners, and this responds to all the dedication and the effort of our team drawing all the year. In the M&A, we were also participating, and we evaluated many assets. We know this market very well. Even though we didn't close any deal of brownfield, we continue watching and looking at the best alternatives to invest to our shareholders. We're going to grow, but we want to generate value. Our growth in transmission will continue to be sustainable.
In efficiency, we delivered almost 6 months early for Janaúba, an important project for the country and for society, during a critical period of the water crisis last year. We're also working to deliver all the other things that we are building and a lot of them are almost concluded. In operational performance, the company has maintained high levels of efficiency, and you will see this in our presentation of results. This shows our capacity in operation and maintenance of the assets of transmission of our company, one of our main pillars.
At the end of 2021, we paid out BRL 523 million to the shareholders, BRL 1.6 billion for the year. I have a slide further that's going to show some interesting numbers about the return that we had for our shareholders during the last year.
So let's start here. In our agenda of sustainability, we did several things. As part of each one, I would like to share another topic here of our agenda of sustainability, which is one of our main vectors in our strategic plan and the success is linked to this. Today, we're going to talk about the pillar of safety. It's very, very important for the whole company. So let's go now to our third slide in the presentation. We started the program, 100% safety to strengthen the culture and the practice, giving more of a voice to everyone. The company put in a strategic way, a set of projects, actions and initiatives to improve the performance of safety in the company and the intensifying of the value beyond the corporate environment: our suppliers, families, partners and society.
As soon as I arrived in 2020, I included this in a weekly meetings. In April 2021, we implemented the safety committee in Taesa. And then in our subsidiaries. We also have a stamp of safety, and we started this in October. In December, we acquired a monitoring system with cameras directed to all the operational activities, and we also developed an app, which is called observing safety to continue monitoring everything that happens with our teams. We continue working with the awareness of the safety team through several debates and internal campaigns and also all the training of the company because it's vital for the health and the safety of all of us.
I also would like to mention that because it is essential for us, one of our goals includes the high administration, and this is security. Of course, this reflects the numbers. For example, we had the accident frequency rate equal to 0. This is something we're very proud of. That means we didn't have any accident with absenteeism in our team in 2021.
Now we're going to Slide 4. The first one is, you can see on the left-hand side is a camera monitoring system. This works with cameras distributed to the -- those responsible for the implementation of the activities. The teams in the field, and the goal is to follow 100% of the routes and the performance, whether it be in the field, substation, and there is a focus in improving processes and procedures and also improving the behavior. The second one, as you can see on the right-hand side, we took a photo of our app, which observes safety, and it is used by all of us so that we can report the situations adequately, positive or negative, that are observed during any activity. So through this app, whether it be for Android or iOS, you can contribute for the improvement and strengthening of the prevention practices and also recognize the good practices that we've implemented in our projects. As you can see, these are many fronts and the goal is just one, safety to everyone.
Now we're going to move on to Slide 6 before giving the floor to my colleague, I'm going to talk about the return to the shareholders. Last year, as you can observe on the chart, it was an excellent year. We paid BRL 1.6 billion, I had already mentioned this. It was an increase of 40% in relation to what was made in 2020. Per unit, this amount went up from BRL 321 million to BRL 450 million. This registered a dividend yield of 12.4% in the year, 29% higher than the yield of 20%, which had already been a solid result. When we analyzed the total share return in the year, we also see expressive growth. That means those who bought a share the first day of the year had a return of 23% at the end of '21, appreciation of the share and the money received.
When we compare the performance of Taesa to TAEE11 to the market, we see that Taesa had a solid performance. We were the asset with a second largest appreciation within the assets of the index of energy and only 3 of these assets had a positive performance in '21. We are on the right way. We continue with our focus and our ambition, our strategic planning, which is to maintain our position of relevance and consolidation in the Brazilian transmission market.
We know that the big challenge is we are transforming this company for this, always based on our strategic pillars: sustainable growth, operational efficiency and financial discipline besides generating value. I trust the road that we're going through for our company with a lot of ambition, professionalism with our values to give a safe environment to work in and high-quality transmission service, all this with a lot of competency, discipline and social environmental responsibility.
Now I'm going to give the floor to Erik, our Financial Director and our IR. He's going to present us the results of 2021.
Thank you very much to everyone. Thank you, Andre. Good morning to everyone. Now let's show you the fourth quarter, the performance and the year of '21. First, let's show the results. This reflects the new cycle of RAP '21, '22, we had a growth of 43.8% of the net revenue compared to the fourth quarter of 2020, explained by the inflation readjustment of RAP and the operation of Janaúba at the end of the third quarter of '21. The same reasons influenced the results of the vision of the year, where we see a growth of 20.5% in the net revenue. These effects were compensated by the drop of the RAP of some concessions. As a consequence, the EBITDA totaled BRL 447 million during the quarter, 55.8% higher than registered in the fourth quarter of '20 and with a margin of 81.1%, expansion of 6.2 points percentage compared to the fourth quarter of 2020.
In the comparison between '21 and '20, we can observe a growth of the EBITDA of almost 23%, ending last year with BRL 1.5 billion and a margin of BRL 82.5 million, also higher than the previous year, which shows a good recovery of the operational margin. On the operational side, we presented an availability rate of 99.86%, aligned with the rate of 2020, showing a solid and consistent performance of our operations. The drop of 0.32 percentage points in the relation of the variable installment RAP. It's a very good result that reinforces the consistency of our operation and the efficacy of our practices in the operation and maintenance.
Finally, the profit -- net profit grew when we compare annually. It's BRL 105.5 million in the quarter, even though we had this wonderful performance of the EBITDA and the results, whether it be during the year of '21 on the last quarter, the regulatory profit was negatively affected by the macroeconomical rates in the financial results. What's more visible in the comparison of social exercises? I'm going to detail this in the next slide for you.
Now let's move forward then, folks, to Slide 7. We're going to talk about the composition of the regulatory net profit. It closed the year in BRL 570.2 million with a reduction of BRL 19.3 million in the annual comparison, motivated, especially due to the deterioration of the financial result that compensated the increase of the annual revenue, as you can see in the chart. We see an expansion due to the inflationary readjustments, 37% by the IGPM and 8% by the IPCA, and also the concession of Janaúba, which started at the beginning of September 2021.
When we analyze the effect of inflation, we have an increase of BRL 635 million. This is compensated. And these were some decreases in contracts, category 2, BRL 298 million, and we already expected this number. The financial result was negatively affected by the following points: less availability of cash during the period because we paid interest rates and amortization of debentures of BRL 433 million and also the payments we made during the year and a larger financial expense due to the increase of the interest rate, monetary variations because of the hike of the IPCA and CDI during the year. There's nothing one can do when inflation goes up. It also increases the financial expenses, that's it. At the same point, we have benefited by this. We are also penalized by the bottom line as the chart clearly shows, with the increase of the net revenue and financial expenses.
Now let's move on to Slide 8. Let's talk about the society vision. We can see in the IFRS, we maintained a result very much aligned with last year with -- this result was affected by the financial results, the same reasons that I mentioned in the previous slide, we had a positive and negative effects that compensated each other. The monetary correction had an increase of BRL 209 million due to the acceleration of the IGPM and the highest IPCA registered in the year, and the OEM was effective positively by the IGM and IPCA and also because of the Janaúba operation. The remuneration presented an increase because of Janaúba and because of the impact of the correction of the balance of the contractual asset.
On the negative side, we had a reduction of infrastructure because our projects of construction there are coming to an end. And of course, with the auction in December, we're going to start a new cycle of growth that Fabio is going to talk about. We had a negative impact.
And now we can advance to Slide 9. We're going to talk about indebtedness. Here, we've already showed you the proportional vision of consolidation. The debt is BRL 8 billion at the end of December 2021, reaching 4.2 leverage of EBITDA showing a reduction in comparison to the previous quarter. This was already expected. It's a cycle of leverage -- and we had strong investments in building. And as they are delivered, they become operational, and this level reduces as we can see. And the profile of our doubt continues adequate and competitive. Even with this level of indebtedness, we have low cost, about BRL 4.8 and long time frames, which is more or less 5.1 years. This is very good.
And it's important to see that these numbers are not included in the last issuing of debentures. We did this in the beginning of this month. We contemplated 2 series with the value of BRL 800 million that expire in 2027. This was successful, not only due to the demand but also the final cost. We were benefited by the medium time of the debt, and we had a low cost for this issuance, CDI plus 1.36% and 5 years. So the cost is very competitive in the market. We don't have financial covenants of leveraging, and we have excellent access to the market. We are AAA in national scale with Moody's and Fitch, and we are in a comfortable position, and we are competitive to get further attractive funding in the market.
I'm going to end my presentation of the results, and I'm going to give the floor now to Fabio, who's going to talk about the success of Taesa during the last auction that took place in December.
Thank you, Erik. Good morning to everyone. Well, now we're going to talk about the performance during the last auction of transmission that took place at the end of last year.
So let's move on to Slide 10, please. During all the year of 2021, we had a very clear position that we had to have detailed planning so that we could be more competitive during the 2 auctions that took place in this year. We did work which started when the year started. The time was in our favor, and we were able to close partnerships, and we had the premises and conditions so that we could really be competitive. In the first auction, we were in a competitive position. The 4 lots that we participated, we were in second place and three, showing repositioning in the market when compared to our competition. We became very motivated. And in the second one, we had 5 lots in several states of Brazil, with the investment of BRL 2.9 billion.
Once more, we mobilized our team and we worked very hard. It involved all the company. We got the best lot of the auction with an investment of BRL 1.75 billion. We also were in third place in 2 other lots where we participated, and this demonstrates our appetite for growth. As you can observe in Slide 10, the lot 1, which we baptized as Ananaí, transmitter of electric energy, represented 60% of the total of investments offered in the auction, and it's also a relevant asset in the point of view of RAP and extension.
Ananaí is a huge -- it's huge. It's situated in São Paulo and Paraná, with an extension of 363 kilometers and 500 kV of potential. It's 2 areas. The first one is 79 kilometers that goes around Curitiba and the largest one links the substation of Assis in São Paulo to the substation of Ponta Grossa in the south of Paraná. It's a project which is structuring for the Brazilian system, and it will supply the urban area of Curitiba. It will also increase the capacity of interlinking the south and the southeast, which is fundamental in this scenario of low availability of the generating part. It has 60 months for conclusion, and it will add BRL 130 million after it starts offering.
It's important to highlight that the achievement of the slot was integrally supported by our strategic pillars of growth, operational efficiency, capital discipline and generation of value for our shareholders. These are the pillars that maintain and guide all the decision-making in our investments. This lot has important synergies and for some operations that we already have in the region that will allow for using the structure that we already have of operation and maintenance. We're also going to work hard to optimize the CapEx and to work hard to have an earlier date of inauguration.
These are the message that I want to give to you, and I'm going to give the floor back to Erik, first, to finalize our presentation.
Meanwhile, thank you for everyone. Before ending the presentation and starting the Q&A, I would like to talk a little bit about the success. Let's go of the Investor Day. Here in the slide, we have some information which is very interesting. We carried out on the 3rd of December 2021 and innovative event. It was more than 4 hours of content, live. We called several participants to learn more about the business of transmission of energy. They were able to talk with those who most know about the subject, the employees of Taesa. This -- it was also an excellent opportunity to talk more about planning the future and the new business vision of Taesa.
We had 2 cool chats with some of the digital influencers and also with an economist to talk about inflation, which is such an important topic for our business. We had more than 3,000 people registered almost 2,000 accesses in the platform, and we had over 1,000 accesses during the event. It was a total success. We had a lot of positive feedback about the format, the content. This is a very good signal for the next years, especially considering the increase that we had in our shareholder base, which was about 50% of increment of the amount of shareholders. This is something that you can see here. So we are incorporating new investments, and I think this helped people connect.
I would also like to take the opportunity to thank all those who accepted the invitation to participate, especially Charlie Witz, Felipe [indiscernible], Guilherme Tiglia, Louise Barsi, Ramiro Gomes Ferreira, Ricardo Natali and Tiago Reis and the economist, Pedro Renault, who gave his talk and also to thank everyone who accepted the invitation to be at this event and make it very successful. If you want to see it and all those who did not have the opportunity to watch the event, we have a slide here, there's a QR code, and this takes you directly for the replay of -- on our QR side.
Now I want to show you something, the proposal of the management about the destination of the results of 2021. Yesterday, we approved the additional dividends of BRL 800 million. This corresponds to BRL 2.32 per unit, and it's important to say that this is a proposal. It should be deliberated and approved on the 28th of April. If it is approved, we'll have the database to distribute this value on the 9th of May with the payment days, which is going to take place up to 31st of December. That means we start the year on the right foot. And we have to remember that we've put in practice the strategic plan long term based on the transmission growth. So it's important to align the distribution of dividends to the growth of Taesa or you are trying to maximize the value for the shareholder, not due to only the distribution of money but also the expansion of the business and responsibility with our leverage levels and the cost of capital, maximizing the value.
In this business vision, putting these 3 pillars together, this makes us be able to pay solidly. We can see the chart on the right side. And this is possible if we align growth with maximization of value and financial responsibility, values that are in Taesa's DNA. So to make this feasible and starting with 2022 -- and we were able to do this because our revenue grew. We'll always be balancing. We're never going to disappoint in the payment of dividends, but we have elements to maximize the value, not only through payments of dividends. So it's -- you better have the correct expectation. And I'm finishing now my presentation.
Cristiano Grangeiro is now going to start the Q&A. Thank you very much, Cristiano, the floor is yours.
Thank you, everyone. Now we can chat. We've received a series of questions here by Q&A. You can ask additional questions. I'm mediating here. And I'm going to start, and I've separated some here.
The first question is about the dividends, the earnings of the dividends. Well, first of all, congratulations for the results. And the question is talking about dividends that Erik announced here, which is going to be deliberated by the Board why he's asking? Why is it only going to be paid up to 31 of December? Is that a cash necessity? Is this something that's happening? So the question is for you about the date of payment.
The percent is the forecast of our statute, but we decide this event-by-event focusing on the maximization of the market values, stock exchange value. We evaluate what is the situation of our balance and the growth in order to work in a competitive way. So we analyze this moment-by-moment. And this complementary dividend is the largest value that we've ever paid up to now starting. So -- it's so that we can make the payment compatible to a comfortable cash flow, so that it doesn't affect our capacity of maintaining the operations, continue investing, continue grow. So it's just a compatibilization, but we're not going to take more time to pay. We are going to deliberate thing, choose the best moment. It won't take long, and we're going to do it in a comfortable way. It's only really to have a compatible cash flow with the company. This is the goal, and we're going to start 2022 very well with this payment.
Thank you, Erik. Now we have another question here about what we have being built. We have 5. So we -- they want to know how these -- how this is coming along, these enterprises.
Thank you, Cristiano. Well, about the implementation project, an important point is, 2021, we started Janaúba where we had -- it was earlier, 6 months early and a savings. It's very opportune moment to deliver this because of the water crisis in the country. We have 5 others, Ananaí, which is our new project. The S project, this is interesting because it connects other concessionaries and part of it has been concluded in February in the established time. And we've asked the liberation term for -- and it's being analyzed right now. So it is a project that is practically finalized, and just waiting for the bureaucratic issues to be freed.
At the end of last year, everyone knows that the state of Bahia and Minas Gerais, these 2 areas had atypical and intense rains causing flooding of public roads. It was publicized everywhere. Besides this, we also had strengthening of the pandemic with the Omicron variant. These were responsible for delaying, and we had to replan these enterprises. Even so, we made efforts to continue the project, and we hope to conclude them in the next few weeks [indiscernible]. They are advanced as we have been saying, and we've been working to deliver them in the right time. In [indiscernible], which is a recent project, we are in the phase of executing the projects. It's a lot that was acquired at the end of the year, and also in the phase of environment licensing.
Thank you, Cristiano for your question.
Thank you, Luis. The next question is for the Director of new businesses. [indiscernible] who's asking about the Lot 1 that we won. Talks about the market, competitiveness and he wants to know a bit about our strategy to increase the gains of this lot and other lots that will come within this competitive scenario. So Fabio, the word is yours, if you could just talk about this strategy in this competitive scenario?
Thank you, Cristiano. Thank you, [indiscernible], for the question. Yes, the transmission market, as we have observed in the last year is very competitive. We've seen new competitors in the market, new actors, but Taesa always analyzes investments with a bias to grow and grow with value generation. We have -- what I said is sustainable growth, excellence in operational and generational value. This philosophy is what goes through all the investments.
The Lot 1, ever since the first day of 2021, we were paying attention in all the lots that were auctioned in '21 and developing creative, innovative engineering solutions. We also carried out partnerships with strategic suppliers. So we worked on different pillars so that we would be competitive in the auction. Thanks to our geographic position, we have relevant synergy, especially in operation and maintenance. So this was one of the pillars. And what do we imagine doing in this year, in this process that we're going to start building now.
Well, it's to have efficiency in the CapEx, which is what we've studied in the practice and also to have it operating earlier. These are the vectors of value for the enterprise. I think that's it. Now there's going to be an auction now in June, where ANEEL is going to put 3 lots of 15 [indiscernible] that is already began, and we are going to do the same work now in these auctions in 2022. I hope I responded to your question, and we are available to answer any other questions. Thank you, everyone, for the participation in our event.
Thank you. We have some other questions here. I think the next one, I'm going to give to Erik to talk about the macroeconomical situation. It comes from [ Leandro Batiste ], and he says, all these penalties due to the hike of interest rates and other things, inflation, et cetera. So he wants to know about the impact.
This is a very good question. And in the regulatory aspect, you -- all the financial expense, all the -- and the revenue is the month-to-month, but in perpetuity, we are -- we have investments that our revenue compensates in terms of value. The BTL of both is very positive. So something might crop up, higher financial expense, but the accounting shows these results. You can see the profit. So the cash flow is benefited by the hike of inflation, and we have a defensive inflation investment. Of course, we have to hope that investment -- that inflation will be low because it is better for the country.
Thank you, Erik. [Operator Instructions]
There's one here from [ Ashish ]. With the concessions in 2003, will you maintain the levels of investment? Are you going to reduce this initiative to reduce the indebtedness? Don't know who wants to answer this question.
Thank you, [ Ashish ], excellent question. It's a recurrent discussion within our strategic planning to remind you that one of the vectors is growth and growth. To growth, you have to grow beyond what we already have of contracts with a drop of rep. So we've just carried out an investment of BRL 130 million of RAP in this Lot 1, that we call Ananaí, and we continuously search for opportunities in auctions and in the secondary market of M&A, so that we continue growing independent of RAP drops. These drops, they tend to happen during the next year. So we have -- we will be able to continue to grow and to consolidate the distribution of energy in the Brazilian market.
Thank you for your question. If anyone else would like to add something, go ahead. Thank you, Andre. I'm seeing if there's another question here. I think Fabio answered. Some people congratulating us on our results.
I have a question, which is specifically about expenses. Short-term debt, BRL 150 million, how can impact to the cash of the company and the availability to pay dividends. But Erik, if you want to add something about the IPCA and how this impacts with our net worth?
The increase of CDI is always bad. But as a reflection of inflation, it's a balance that tends to favor us. We gain in revenue, so it favors cash, this increase of inflation. So it's not a concern for Taesa. I don't see any difficult to invest and to grow or opportunities to pay our dividends. Always, of course, remembering that we have a dividend strategy, which is high because the market has allowed it. GPM is high. So this context, it might not perpetuate, might not be like that every year. But we're never going to disappoint. We're always going to pay half of profit, which is quite stable. So we have maintenance capacity, which is high. Now, of course, this growth that we had 2021-'22 might not continue, but it will never disappoint the payment of dividends.
Well, since you talked about the payment of dividends, I have a question. This announce here -- is there going to be any other payment of dividends during 2022. Can you talk?
We have 3 types of dividend. The dividend itself which is deliberated by the Board adding to what was paid to the result of last year. So it's based on the results, complementing what was paid in 2021. And as the other dividend, which is this one -- so during the year, we can declare and pay at any time. And there is no declaration, no other declaration. But the Board can, during the year, declare alternative dividends as has been done in the last years, but there's no obligation. The only obligation is 50% complementary additional dividends, and the other one is if the management of the company considers that due to the situation of leverage of the company, due to the investment, due to the financing and maximizes the value of the market with alternative payments, the Board can make this declaration. It's a possibility, but it is not compulsory and it's not a certainty.
We have 2 questions that I can answer. Someone asked about TAA3, which is the -- which are the shares that some people have. So it's the same. You got to receive from shares. So if you have the CB2 and if you have TAA3, TAE4, you're going to receive 1/3 because it's in blocks of 3 shares. The other question -- this presentation is available on the website. You can access look at it calmly about Ananaí.
Yes, we're working with the efforts so that we can, but -- we can't give you any certain expectations. There are a lot of repeated questions.
This question is for Erik. I think it's good to remember. Is the internal goals for an optimal level of indebtedness and [indiscernible] is congratulating for the results.
Besides the debt, the leverage debt, we have rating. In the case of Taesa, we have stable and -- so case-by-case, we can evaluate what maximizes the value due to the opportunities of investment, the leverage and also the financing sources. So we don't publicize. We don't have any contractual obligation. There are different levels of leverage. We have the capacity with the stability of our cash flow to take the decision case-by-case, and in our vision, this maximizes the value. So this flexibility allows us to analyze a scenario and say, "No, we can't pay. We have a source to funding for this use of money to grow. We have a situation that allows it." So we take decisions case-by-case, and there's no gradual obligation. We take the decision based in our capacity, which is of having a stable revenue. And we can use this to maximize the value of the shares, taking the decision case-by-case.
Thank you, Erik, for your response. We're reaching the end of our event. We have some repeated questions. Our team will be available to respond if you don't feel comfortable, so that we don't repeat the same questions.
[indiscernible] CDI, someone said, what is the date of payment? The date is up to 31st of December this year. So we have to wait for new communication, but up to now, the data is at the end of the year.
The transmission auction in June, we will be participating. We are working. This has been a huge effort for the company. We are already beginning the work very far forward. There's one here in [indiscernible]. The management of Taesa is trying to get lots in auctions with frequency. I'm going to ask -- Andre can respond, Erik. So please respond to [indiscernible] question.
So we have strategic planning for growth with the increment of our rep. We're going to have Ananaí. And of course, with the termination of enterprises, this is going to give an incremental RAP, and we intend to be competitive and to continue participating in the auctions. Just to remind you, the last auction in December, we -- it was between the 2 proposals and in the end, this shows how competitive it was done with live, and we're preparing again. We continue with our financial discipline, value generation to guarantee the best return to the shareholders. We're not going to do anything crazy, but we want to continue and our team is full swing to participate in the midyear auction analyzing case-by-case how we're going to participate. If anyone wants to add anything, feel free.
Thank you. Well, I believe that we've ended answering the questions we answered. [Operator Instructions]
We thank you for your time and the participation of this video conference 2021, and we are available for any other question. Have a wonderful day, and thank you, everyone.