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Investor Presentaiton

2Q19 Highlights Photo by Alessandro César de Sousa Berredo IFRS ■ Net Income recorded R$ 307.4 million in 2Q19, 11.3% y.o.y increase (+R$ 31.3 million), mainly due to: (i) Higher inflation rates in 2Q19 affecting the monetary restatement revenues (+R$ 10.2 million) and the equity method (+R$ 19.9 million); (ii) Increase of O&M revenues in R$ 6.5 million as a result of 2018-2019 cycle readjustment; (iii) Improvement of R$ 8.2 million in the Variable Portion; (iv) Lower operating costs and expenses (ex-constrution) in R$ 3.8 million; (v) Gain of R$ 9.8 million on the acquisitions of Brasnorte and Transmineiras; (vi) Higher net financial expenses in R$ 16.9 million, resulted from the debt issuances between the periods. ■ 92.6% q.o.q increase of the net income (+R$ 147.8 million) due to the recovery of the inflation indexes between the compared periods. • Adjusted net income of R$ 384.9 million in 6M19, ex-effects of CPC 47 adoption. After legal and tax incentive reserves, 6M19 distributed earnings reached R$ 345.5 million (R$ 1.00/Unit and payout of 89.8%), as follows: (i) Payment of R$ 96.7 million (R$ 0.28 / Unit) on 05/28/19, based on interim statements of March 31, 2019, divided in (i) interim dividends of R$ 18.9 million (R$ 0.05/ Unit), and (ii) interest on equity of R$ 77.9 million (R$ 0.23 / Unit); and (ii) Distribution of R$ 248.7 million (R$ 0.72 / Unit) approved by the Board of Directors on 08/05/19, based on interim statements of June 30, 2019, divided in: (i) interim dividends of R$ 180.0 million (R$ 0.52 / Unit), and (ii) interest on equity of R$ 68.7 million (R$ 0.20 / Unit); to be paid on 08/19/19 based on the shareholding position of 08/08/19. taesa 3
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