Sérgio Roberto Belisário

Desenhando o futuro...

Sérgio Roberto Belisário

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INFOVIAS– ServicesandClients

TelecommunicationsatCEMIG– HistoryandEvolution

INFOVIAS– StrategicPositioning

INFOVIAS– MainNumbers

INFOVIAS– Outlook

Agenda

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INFOVIAS– ServicesandClients

TelecommunicationsatCEMIG– HistoryandEvolution

INFOVIAS– StrategicPositioning

INFOVIAS– MainNumbers

INFOVIAS– Outlook

Agenda

Synergy between Energy Networks

and Telecommunications Networks

BECOMES

A NEW

BUSINESS

HISTORY

INDUSTRIAL

PROCESSES SUPPORT

Ex: tele-protection, tele-control, plant automation

1998FORWARD

UNTIL1998

BUSINESSES

SUPPORT

Ex: voice and data communication; corporate

network

1999 2000 2001 2002 2003 ... 2007 2008 2009 2010 MultiServiceNetwork HFC – CATV/Internet SDHNetwork– RMBH/Interior IntegratedSystem MultiService SIM

• Fiber Optic ring network,wide dispersion

• End-to-end dedicated circuit (from the operator to the client)

• 26 cities

• Location:1,860 km of overhead or underground network in the

RMBH and Interior; right-of-way on posts and nodes in Cemig’s distribution network

• Long Distance: OPGW optic cables on energy transmission

lines – 1,300 km. Exchange with Eletronet;

• Network geared toward Wholesale(Operators);

•Anchor Contract: Cemig.

• Network expansion to the

northern and southern regions of Minas Gerais

• New technological

resources:voice, IP

telephony, video

conferencing, electronic monitoring, automation, etc.

• More than27 cities

• Infovias evolves to provide

added-value

telecommunications

services,in addition to simple supply of capacity

• Network geared toward the

corporate market

•Anchor Contract: Cemig

•3,300 kmof HFC network (Hybrid Fiber Coaxial Network) •600 km of optic cables

•12 cities

•Services: CATV; Broadband Internet; VPN; Web TV; Data, Voice; Telemetry

•Network geared towardRetail (PME, SOHO, Res.)

•Anchor Contract: OITV, BRTEL

MetroEthernetNetwork WSale WayTV •Sale to OI •Amount received R$ 103 million

TelecommunicationsatCEMIG– Evolution

IPATINGA UBERABA BETIM UBERLÂNDIA SETE LAGOAS CONSELHEIRO LAFAIETE BH RIB. NEVES POÇOS DE CALDAS ITUIUTABA BARBACENA CONTAGEM

CitieswithMultiServicesNetworks HFC

HFCNetworkCoverage RMBH

Metropolitan Network

STM 16 Ring over

OPGW Optical Cables

Passos Araguari P. Caldas Furnas Uberaba Jaguara Divinópolis

CENTRAL-WEST

(BRASÍLIA)

SOUTH

(SÃO PAULO)

DISTRIBUTION NETWORK

MG

RIO DE JANEIRO

NORTHEAST

CitieswithSDHNetworksandLongDistance

Backbone

HFC Network – 260 km Legend:

POP’s and Coverage - SDH

SDH Network – 72 km

CONFIGURATION AFTER

NETWORK EXPANSION

(prevision - 2010)

NetworkCoverageAfterIntegratedSystem

MultiService SIM

ƒ

Network based on IEEE Ethernet protocol (the same protocol used by

corporate computer networks – Corporate LANs)

ƒ

The topology of the MetroEthernet Network is an

entire ring

ƒ

Integrated

with SDH/NGN and HFC/IP networks

ƒ

Initially in Belo Horizonte’s

Metropolitan Region

ƒ

Services:

•

Simple connectivity

: point-to-point circuit, LAN-to-LAN connections, Internet

access, interconnection between POPs

•

3G backbone

network (third-generation cellular)

•

More complex services

: IP telephony, video conferencing, private logical

networks for interconnection of Intra/Extranets, remote monitoring and

surveillance, etc.

MetroEthernetNetwork– RMBHCoverage

MetroEthernet Optical Network City Hall

INFOVIAS– ServicesandClients

TelecommunicationsatCEMIG– HistoryandEvolution

INFOVIAS– StrategicPositioning

INFOVIAS– MainNumbers

INFOVIAS– Outlook

Agenda

Electric / Railways/ DERs

•Offerscircuits to transport local and long

distance voice and data to

telecommunications operators (Carrier’s Carrier)

•Offers Cable TV and Broadband Internet infrastructureto OITV and BRTEL

•Corporatevoice and data services

Company

ServicesOfferedToday

ShareholderParticipationand

Authorization

•100% Energy Company of Minas Gerais

•Authorization to develop Multi-Media Communication Services (SCM).

•Authorization to developCommuted Fixed Telephone Services (STFC)

•Member company of CEMIG Group

•Objective: to provide telecommunication services through electricity network infrastructure with state-of-the-art technology

•Competitive Advantage: infrastructure

•Differential: dispersion, agility in attendance, and low implementation cost

ROW

NodeRental

DarkFiber

FiberSwap

Carrier’sCarrier

ValueAddedServices

RetailServices

Electric / Railways/ DERs Some Operators Some Operators Infovias Business Carriers Fixed Mobile

Specializ

a

tion

/Risk

InfoviasBusinessModel

Cemig/InfoviasRelationship

Provision of circuits for: Corporate network; remote monitoring and control of S/Es; IP access portal to the Internet; Voice/Data. Right-of-Way % of revenues related to right-of-way 100% dividends

StrategicPositioning

INFOVIAS– ServicesandClients

TelecommunicationsatCEMIG– HistoryandEvolution

INFOVIAS– StrategicPositioning

INFOVIAS– MainNumbers

INFOVIAS– Outlook

Agenda

Type of Client

Product / Service

I – Telecommunications Operators

II - Internet Providers (ISPs)

III – Cable TV Operators (CATV)

IV – Other Clients (ex.: CEMIG Group)

1 - Clear Channel Digital Circuits

- nx64 kbps, E1, E3, STM1, STM4

2 - Ethernet interface circuit

- 2 Mbps to 1 Giga

1 - Ethernet interface circuit

- 2 Mbps to 1 Giga.

1 - CATV in 12 cities

2 – Access to residential and commercial

Broadband Internet in 8 cities

1 – Clear Channel Digital Circuits

- nx64 kbps, E1, E3, STM1, STM4

2 – Ethernet interface circuit

- 2 Mbps to 1 Giga

3 – IP Portal

4 – Corporate Voice Service

5 – Corporate Data Service

INFOVIAS– ServicesandClients

TelecommunicationsatCEMIG– HistoryandEvolution

INFOVIAS– StrategicPositioning

INFOVIAS– MainNumbers

INFOVIAS– Outlook

Agenda

ƒ

The average increase in billing over the last 5 years was

R$ 13.9 million

ƒ

Average growth in billing in the previous 5 years was

27.5%

Infovias– BillingEvolution

Gross Revenues - R$ Million - Annual

Dedicated Circuit Services Internet CATV 70.4 55.1 40.1 29.9 14.9 2,2 79.8 99.3 100.1% 34.4% 37.4% 27.7% 13.3% 24.5% Growth % 565.8%

(3,773) 13,104 23,573 31,306 38,190 48,451 2003 2004 2005 2006 2007 2008

EBITDA - R$ thousand / Margin (%) - Annual

-14%

36% 48% 52% 56% 59%

ƒ

On average, over the last 3

years EBITDA has grown

4

percentage points

.

Integral

Excluding

Net

Non-Recurring

Margin

Events

2005

1%

1%

2006

43%

11%

2007

84%

17%

2008

26%

26%

Year

2007 - Profit from sale of Way

2006 - DEFERRED IR

(29,128) (20,183) 380

26,017

21,602

2003 2004 2005 2006 2007 2008

Net Profit/Loss (R$ thous.) - Annual

45,118 11,849 56,967 6,537 19,480

Infovias– EBITDAandProfitPerformance

Infovias– Investments,NetRevenuesandCost

andExpensesPerformance

ƒ

Total investments

in 2008 added to:

R$ 442 million

ƒ

Cost and expenses

represented 40.5% of

net revenues in 2008

ƒ

Cos

repr

net r

Evolution of Operating Result - R$ thousand 0 5,000 10,000 15,000 20,000 25,000 30,000 4Q/07 1Q/08 2Q/08 3Q/08 4Q/08 1Q/09

Net Revenues Cost Expenses EBITDA

EBITDA 24,510 15,578 6,039 2,893 12,141 19,246 4,919 2,187 47,581 4,801 4,349 4,760 7,691 6,159 4Q/07 1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 Net Profit/ Loss (R$ thous) - Quarterly

12,328 35,253

Profit from sale of Way Profit purging sale of Way

4Q/07 -9,241 3,623 2,310 6,200 10,151 3,584 2,343 6,323 11,399 4,101 2,526 6,219 12,797 4,319 2,653 6,137 13,178 4,514 2,793 6,262 13,462 5,056 2,883 8,666 4Q/07 1Q/08 2Q/08 3Q/08 4Q/08 1Q/09 Local Transpl LD Transp. Integrated Services CATV/Internet

22,401 21,374 24,244 25,906 26,746 30,067 12.4% 3.2% 6.9% 8.2% 4.8% 5.5%

Quarterly Billing - R$ thousand

ƒ

Billing

grew

34%

in 1Q09 over 1Q08

ƒ

Net Income

rose 28% in 1Q09 over the

same quarter in 2008

ƒ

EBITDA

increased

28%

in 1Q09 from

same year-ago period

INFOVIAS– ServicesandClients

TelecommunicationsatCEMIG– HistoryandEvolution

INFOVIAS– StrategicPositioning

INFOVIAS– MainNumbers

INFOVIAS– Outlook

Agenda

Infovias– Outlook

Projects Descriptions

I. MetroEthernet Network in the Interior 1 – MetroEthernet Network expasion to _{13 cities in the interior}

Clients:Telecommunications Operators, 2 – Investment of R$ 4.2 millionover 10 years

Internet Providers, CEMIG, etc. 3 – Estimated revenues of R$ 23.7 millionin 10 years

Status:In the Business Plan

II. GPON Project (Passive Gigabyte 1 - GPON – HFC networks (Hybrid Fiber Coaxial Cable) evolution

Optical Network) 2 – Network entirely in fiber optic cable (up to the subscriber’s residence

Client: CATV Operator 3 – Much greater broadband capacity

Status:In the Business Plan 4 -32 condominiums in the region of Nova Lima (high-luxury condominiums) 5 – Investment of R$ 14.2 millionover 10 years

6 – Estimated revenues of R$ 35.3 millionin 10 years

III. Video Monitoring 1 – Automation Project of the Generation and Transmission Department;

Client: CEMIG 2 – Monitoring project to aid asset protection activities (DGE)

Status:To be included in the Business 3 - Aneel – sub-module 10.14: meets tele-assistance requirements for

Plan. actions regarding action-blocking devices of operating

equipment

4 – Investment, operation and maintenance for Infovias 5 – Investment of R$ 30.7 millionin 4 years;

6 – Estimated revenues of R$ 89 millionin 10 years

7 -CEMIG: improvement in operating efficiency; better efficiency in controlling asset safety; optimization of maintenance and operating procedures –cost reduction

IV. Migration of TC to Infovias 1 – Transfer of TC administration to Infovias

Client: CEMIG 2 – Transfer of annual budget of R$ 44 million

Status: To be included in the Business 3 – Total of 220 employees

Plan 4 - Infovias now manages the entire telecommunications demand of CEMIG Group

TernaNetwork

ƒ

The

Terna

Group

has

3,300 km of Fiber Optics

ƒ

2,400 km available

ƒ

NOVATRANS

– 1,278 km

ƒ

TSN

– 1,062 km

ƒ

GTESA

– 55 km

ƒ

ETAU

– 35 km

ƒ

PATESA –

no OPGW

ƒ

MUNIRAH –

no OPGW

ƒ

ETEO – 501 km -

no

available

- agreement with

CTEEP and ELETRONET

ƒ

BRASNORTE – 402 km

in

building

Investor Relations

[email protected]

Telephone:(5531)35065024

Fax:(5531)35065025