corporate presentation
DESCRIPTION
Corporate Presentation. April 2013. Light Holdings. 2. Rankings Among the largest players in Brazil. INTEGRATED² Net Revenues 2012 – R$ Billion. DISTRIBUTION¹ Energy Consumption in Concession Area ( GWh ) - 2012. 18.5. 37,626. 15.0. 24,714. 11.8. 22,737. 8.5. 21,467. 20,054. - PowerPoint PPT PresentationTRANSCRIPT
Corporate PresentationApril 2013
Light Holdings
Light S.A. (Holding)
100% 51% 20%100% 100% 100%100% 100%51% 25.5%100%
Light Serviços de Eletricidade
S.A.
LightgerS.A.
ItaocaraEnergia
Ltda.
Amazônia Energia S.A.
Light EscoPrestação de Serviços S.A.
LightcomComercializadora
de Energia S.A.
Light Soluções em Eletricidade
Ltda.
Instituto Light
AxxiomSoluções
Tecnológicas S.A.
CR ZongshenE-Power
Fabricadora de Veículos S.A.
GuanhãesEnergia
S.A.
21.99%
Renova Energia
S.A.
Central Eólica Fontainha
Ltda.
100%
Central Eólica São Judas
Tadeu Ltda.
100% 9.77%
Norte Energia
S.A.
33%EBL Cia de Eficiência Energética
S.A.
Light Energia S.A.
Distribution Generation Commercialization and Services Institutional Systems ElectricVehicles
51%
2
Tractebel AES Tiete Duke CPFL EDP Light
Cemig CPFL Neoenergia Copel Light EDP Eletropaulo Cemig Copel CPFL Paulista
Light Celesc
RankingsAmong the largest players in Brazil
INTEGRATED²Net Revenues 2012 – R$ Billion
GENERATION PRIVATE-OWNED COMPANIES²Installed Hydro-generation Capacity (MW) – 2012
37,626
24,71422,737
21,467 20,054 15,018
18.5
15.011.8
8.56.9 6.6
5,560
2,658 2,241 2,219 2,012877
DISTRIBUTION¹Energy Consumption in Concession Area (GWh) - 2012
1 – Source: Captive market 2 – Source: Companies reports* Considers the 9 MW of Renova’s SHPs
* 3
Shareholders Structure
CEMIG RME LEPSA BNDESPAR MARKET
FIP LUCE
PARATI
CEMIGFIP REDENTOR
REDENTORENERGIA
26.06% 13.03% 13.03% 13.46% 34.41%
100%
75% 25%
13.03% 13.03%100%
96.81% 100%
6.41%19.23%
BTGPACTUAL
SANTANDER
VOTORANTIM
BANCO DO BRASIL
28.57%
5.50%
28.57%
5.50%
28.57%5.50%
14.29%
2.74%
MINORITY
3.19% 0.42%
Free Float 47,9%
25.64%*
FOREIGN NATIONAL
57.78% 42.22%
Percentage in blue: indirect stake in LightLight S.A.(Holding)
Controller Group 52,1%
*12.61% (RME) + 13.03%(LEPSA)
11 Board members: 8 from the controlling group, 2 independents e 1 employees nominated
A qualifying quorum of 7 members to approve relevant proposals such as: M&A and dividend policy
4
Corporate GovernanceGeneral Assembly
Fiscal Council
Board of Directors
AuditorsCommittee
Governance and Sustainability
Committee
Human Resources Committee
Finances Committee
Management Committee
Chief Executive Officer
Chief HR Officer
Chief Business Officer
Corporate Management
OfficerChief Legal Officer
Chief Financial and Investor
Relations Officer
Chief Distribution Officer
Chief Energy Officer
João B. Zolini Carneiro
José Humberto Castro
Evandro L. Vasconcelos
Andreia Ribeiro Junqueira
Fernando Antônio F.Reis
Paulo Carvalho Filho
Evandro L. Vasconcelos*
Paulo Roberto R. Pinto
Chief Communications
Officer
Luiz Otavio Ziza Valadares
LGSXYADR-OTC
Interim*
5
Distribution Business
4.1 million clients (serving 10 million people) Energy sales (2012) – 23,384 GWh 70% of the consumption of Rio de Janeiro state (Brazil’s 2nd GDP)
6th largest energy distribution company in Brazil (2011)
LIGHT
6
2009 2010 2011 2012
15,5
17,5
19,5
21,5
23,5
25,5
27,5
2009 2010 2011 2012
2009
2010
2011
2012
+2.0%
22,932
22,384
24.0ºC
24.3ºC
20112010
21,492
23,384
2009
24.5ºC25.0ºC
+2.9%
2012
1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process, the billed energy of the free customers Valesul, CSN and CSA were excluded in view of these customers’ planned migration to the Basic Network.
TOTAL MARKET (GWh) ¹
Energy Consumption Distribution – Year
Industrial7%
Residencial35%Comercial
29%
Outros Cativos15%
Livre14%
Industrial7%
Free14%
Others15%
Commercial29%
Residential35%
With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 3.0% over 2011.
7
2011 20122011 2012 2011 2012 2011 2012 2011 2012
Total Market
FREECAPTIVE
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
2011 2012
+2.0%
19,87720,05
4
22,932
3,056 3,330
23,384
+3.0%
3,417 3,521
3,603185 191
3,712
+9.1%
6,3106,856
6,967657
7437,599
1,731
1,528
3,944
2,213
2,396
3,925
-3.2%
8,418 8,149
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – YEAR
2011 2012 2011 2012 2011 2012 2011 2012
-0.5%
8
Prospects for State of RioInvestments of R$ 211.5 billion in the State of Rio de Janeiro¹
OilR$ 107.7 bn
50.9%
TourismR$ 1.8 bn
0.9%
OthersR$ 1.9 bn
0.9%
Olimpic FacilitiesR$ 8.6 bn
4.1%
InfrastructureR$ 51.0 bn
24.1%
Transformation IndustryR$ 40.5 bn19.1%
Period 2012-2014
¹Source: Firjan (Industry Federation of Rio de Janeiro)
Events Schedule
Confederations Cup
World Youth Day
World Cup
Olympics
Paralympics
Jun, 15 to 30/2013
Jul, 23 to 28/2013
Jun, 12 to Jul, 13/2014
Aug, 5 to 21/2016
Sep, 7 to 18/2016
9
Economic activity leading to more demand
Rio de Janeiro
Maracanã (ND)Porto Maravilha (ND)Morar Carioca (ND)Aeroporto Tom Jobim (5MW)Estaleiro Inhauma (ND)Atento (2MW)Expansão Nova América (4MW)Expansão Norteshopping (3MW)
Petrobras (15MW)CSN (100MW)Gerdau (30MW)Usiminas (20MW)LLX (40MW)Base Naval(25MW)Hotel Comfort (3MW)
Gerdau (90MW)Shop. Campo Grande (3MW)Rolls Royce (3MW)
Nestlé (3MW)
Bio Manguinhos (ND)Hermes (3MW)Votorantin (ND)Ongoing (ND)Bunge (ND)AMBEV (2MW)GE (6MW)Shop. Metropolitano (10MW)
RHI (5MW)Lavazza (3MW)Ajebras (5MW)
Reluz (ND)Embelleze (5MW)
MRS (ND)
AMBEV (ND)NeoBus (10MW)
Coquepar (42MW)Procter & Gamble (10MW)Alpargatas (ND)
The State of Rio de Janeiro will attract $ 250 billion as investments by 2016 ¹
¹Source: Associação Brasileira de Municípios – ABM website.
Centro Tecnológico Fundão (ND)
Shopping Village Mall (7MW)Edifício Tishman Speyer (5MW)Expansão Via Parque (2MW)Casa Granado (3.5MW)Hospital São Lucas (4MW)Metrô Ipanema (8MW)Flow Serve (11MW)Alog Data Center (12MW)
10
Total Varejo Grandes Clientes Poder Público
2011 2012
Collection rate by segment
102.5%
YEAR
97.4% 98.0%
96.4%94.3%
101.0%
98.8%
102.6%
2011 2012
Total Retail Large Clients
Public Sector
11
40695 40787 40878 40969 41061 41153 41244
Losses12 months
33.3%
Technical losses GWh
% Non-technical losses/ LV Market
% Non-technical losses / LV Market - Regulatory
Non-technical losses GWh
Reflects exclusion of long term delinquent customers from the billing system, according to Resolution 414 by Aneel.
Sep/11 Dec/11 Jun/12Mar/12 Sep/12Sep/10 Dec/10 Jun/11Mar/11Jun/10 Dec/12
42.2%40.7
%41.2
%40.4%
43.1%45.4
%42.4
%42.1
%41.8
%41.6
%41.3
%
5,316
2,328 2,349
5,229
7,5827,627 7,665
2,335
5,247 5,615
2,432
8,047
5,457
2,381
7,838
5,330
2,5292,214
6,097
2,197
5,352 5,312
2,231
5,278
2,215
5,326
2,293
7,5498,626
7,544 7,5437,493 7,619
37% Risky Area
63% Non-Risky Area
12
New Technology Program
Technology used in regions in which conventional measures are not effective
Areas that present high levels of non-technical losses
Light aims to reduce losses through investments in new technologies, integration of operational activities, increase of public awareness and institutional partnerships with interested agents.
Grid shielding projects
Actual grid Shielded grid
Control room
3 m
9 m
Low voltage
Mechanical Meter
Medium voltage
Display
Low voltage
Medium voltage
Centralized meter
13
2010 2011 2012
New Technology Program
Monitoring, reading, cutting and reconnection of customers telemetry– MCC (Measuring Center Centralized)
Prioritization in areas of high losses and aggressiveness to the network
Technology hindering inappropriate interference in networks
Meters Installed (Thousands)
(ITRON) (LANDIS GYR. CAM and ELSTER)
CENTRALIZEDINDIVIDUAL
72
38
11038
38
2010 2011 2012
208
341
170
303
2010 2011 2012
14
New Technology ResultsIndividual
Losses (before): 26%Losses (current): 7%
15
New Technology Results
Losses (before): 48%Losses (current): 14%
Centralized
16
Zero Losses AreaArea: Nova Cidade Neighborhood - Nilópolis
FEATURES LV MV TOTAL
Clients 10,083 3 10,086
Network (KM.) 50 23 73
Transformer (QTY.) 107
Power (MVA) 12.9
RESULTS 2010 2011
Collection (R$ MN) 8.9 10.3
Non-technical losses 41.7%¹ 7.4%²
¹ Nov/10² Dec/11
17
Losses Reduction - Business CaseAn example
300 kWh
100 kWh
REAL CONSUMPTION
BILLED CONSUMPTION
NEW METER INSTALLATIO
N
200 kWhLOST ENERGY
ENERGY SAVED100 kWh
BILLED CONSUMPTION INCREASE100 kWh
OTHER EFFECTS (BY-PRODUCTS):
CAPEX GOES TO THE RAB
BAD DEBT PROVISION REDUCTION
OPERATIONAL COSTS
REDUCTION
18
Transformation of risky areas
19
Tabaj. e Cabr.
Borel e Casabranca
Transformation of risky areas
Batan
Cidade de Deus
S. Marta
Mang.e Babil.
Alemão
Formiga
Andaraí
Macacos
Salgueiro
Cantag. e Pavãoz.
64.7 thousand clients inside pacified
communities with new meters and network
Santa Marta Before After
Clients 73 1,605
Losses 90% 6%
Delinquency 70% 2%
20
GENERATION BUSINESS
Installed Capacity868 MW
HPP Santa Branca 56 MW
HPP Ilha dos Pombos 187 MW
HPP Fontes Nova 132 MW
HPP Underground Nilo Peçanha - 380 MW
HPP Pereira Passos100 MW
SP
RJ
HPP Santa Branca
Paraiba do Sul River
HPP Ilha dos Pombos100%
100%
100%100%100%
Lajes Complex
51%
SHP Paracambi 13 MW
22
Re-pricing of existing energy
Contracted Energy (Regulated)² Contracted Energy (Free) HedgeAvailable Energy
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
475
122
53
340
304 282 251 243 238 228 228 228
52
206 228 259 267 272 282 282 282
25 25 25 25 25 25 25 25 25 25553 539 535 535 535 535 535 535 535 535
Energia contratada (ACR) Energia contratada (ACL) Recursos disponíveis para comercialização HedgeAverage sale price to free market
(R$/MWh)¹128 135 148 151 155 157 157 157 157 157
Conventional Energy Balance Assured energy (MW average)
¹Database january. 2012² Average price to Regulated Market (dec/11): R$ 75/MWh
23
Generation Expansion
SHP LajesInstalled Capacity: 17 MWThe construction is to be started by the 2nd half of 2012. Operational Start: 2nd half of 2014; Installation License already issued.
HPP ItaocaraInstalled Capacity: 151 MWThe construction is to be started by the end of 2012.Commercial Operational Start: 2nd half of 2015. Preliminary License already issued.
SP
RJ
Paraiba do Sul River
Lajes Complex
24
Renova
(1) Share of RR Participações SA out of the control block
By the middle of 2011, Light signed an investment agreement of $360 million and the PPA (Power Purchased Agreement) of 400MW of installed capacity to have 25.9% stake at Renova. This year BNDESPAR is becoming a shareholder after a capital increase in Renova. Light keeps a 21.99% stake.
Light21.99%
RR Participações
21.99%
Controlling Shareholders64.6% CS
Light 32.3% CS 0% PS
RR Participações 32.3% CS0% PS
Shareholder Structure December 2012
Location
Wind FarmsInventory (SHPs)Basic Projects (SHPs)
Auctions Performance The biggest winner in the Reserver Energy Auction of
2009 The biggest winner in the Reserver Energy Auction of
2010 2nd largest winner in the Auction A-3 of 2011
Company’s Portfolio 41.8 MW of SHPs in operation under the PROINFA
contract 294.4 MW of wind energy under construction to start the
operation in Jul/2012 808.3 MW of contracted wind energy to be delivered
between 2013 until 2017 Pipeline 5.8 GW under development Projects in the same area providing synergies and scale
gains
RR Participações21.99%
Light21.99%
RR Participações (1) 8.5%
BNDESPAR12.1%
InfraBrasil15.2%
Santander3.0%
FIP Caixa Ambiental7.1%
FIP Santa Barbara6.1% Others
4.0%
25
Renova - Contracts
Contract Sites Term(years) Index
Operation Startup
(Estimated)
Installed
Capacity
(MW)
Average Load
Factor (%)
Estimated Energy (MW
average)
CAPEX
/MW installe
d (R$ MN)
LoanTariff(R$/MW)
SHPP 3 20 IGPM
In operation
since 2008
41.8 61.3 24.2 4.901 BNB Contracted 182.06
LER 2009 14 20 IPCA
In operation
since Jul 2012
293.6 50.8 148.9 (*) 3.996 BNDES Contracted 160.65
LER 2010 6 20 IPCA Sep – 2013 162.0 52.7 86.8 (*) 3.878 BNDES
Eligibility 130.76
Y-3 2011 919 years and 10 months
IPCA Mar - 2014 212.8 50.5 108.1 (*) 3.245 BNDES
Eligibility 100.91
Y-5 2012 1 20 IPCA Jan – 2017 22.4 - - - - 90.07
PPA Light 1 10 (E) 20 IPCA Sep - 2015 200.0 50.5(E) 100 (E) 3.245 - -
PPA Light 2 10 (E) 20 IPCA Sep - 2016 200.0 50.5 (E) 100 (E) 3.245 - -
26
Belo Monte - Overview
51.0% CS 0.0% PS
49.0% CS100.0% PS
Amazônia Energia Participações S.A
Norte Energia S.A (Belo Monte)
9.77%
74.5% of total stock 25.5% of total stock
Technical data on the concession: Concession period – 35 years End of concession – August 25, 2045
Technical data on the project: Installed capacity – 11,233 MW
– Main engine room – 11,000 MW
– Auxiliary engine room – 233 MW Assured Energy (Average MW) – 4,571 MW Reservoir – 516 Km² Flooded area/generation ratio of 0.05 Km²/MW 5,000 families affected Estimated project cost (April 2010) – R$ 25.8 billion
Other Informations: Amazônia Energia will own 9.77% of the enterprise.
– Construction works estimated to take 9 years.
– Transaction does not affect Light ‘s dividend flow BNDES loan ensures leverage at low cost on favorable terms.
– Tender 30 years, fixed installments. 85% of items financiable. PSI line. Amazônia Energia’s equity in the project estimated at R$ 150 million (Apr.
2010), to be disbursed over 6 years. Expansion of generation portfolio:
– Increases Light’s total generation portfolio by 280 MW Terms for sale of electricity generated already set.
− Regulated Market: 70%; Free Market: 20%; Self-producers: 10%.
Norte Energia S.A. – Shareholders Profile
Public sector49.98%
Others privates30.25%
Amazônia Energia9.77%
Self Prod.10.00%
27
1
GuanhãesTOTAL CAPEX
R$ Million
PCH Dores de Guanhães
Senhora do Porto Jacaré Fortuna II Total
Installed Capacity (MW) 14 12 9 9 44
Assured Energy(MWaverage)
8 6.77 5.15 5.11 25.03
ANEEL Authorization 11/22/2002 10/08/2002 10/29/2002 12/21/2001
Operation - Start up Dec/13 Dec/13 Feb/14 Oct/13
Authorization Term 30 years (with renewal for 20 years)
269.2
60.2
57.8
151.2
Equity
Debt
Light Energia
Cemig GT
BNDES
28
Capacidade Light
Energia
(+) PCH Paracambi
(+) Renova Capacidade Atual
(+) Lajes (+) Itaocara (+) Renova (+) Belo Monte
(+) Guanhães
Capacidade após
expansão
Expansão da Geração (MW)
New Generation Projects
Installed Capacity (MW)
Installed Capacity
Capacity After Expansion
Investments in Renova, Belo Monte and Guanhães. In line with our strategy of growing in the generation business
¹ Considering 51% stake² Considering 21.9% stake³ Considering 2.5% stake
+ 59.8%
(+) Belo Monte³
(+) SHPParacambi¹
(+) SHPLajes¹
(+) HPPItaocara¹ (+) Guanhães¹ (+) Renova²
1,505
13 74* 9 77175
280
855
(+) Renova²Current
Capacity
* 9 MW SHP + 65 MW Wind Farm (since jul/12)
942
22
29
RESULTS
Net Revenue
Industrial 6.8%
NET REVENUE (R$MN)
Generation 6.3% Distribution
89.6%**
NET REVENUE BY SEGMENT (2012)*
Commercialization 4.1%
* Eliminations not considered** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (2012)
Commercial 30.1%
Others (Captive) 12.6%
Network Use (TUSD)(Free + Concessionaires) 9.4%
Residential 41.1%
Construction RevenueRevenue w/out construction revenue
4T11 4T12 2011 2012
+19.2
1,815.1
2,162.9
4Q124Q11
199.3
1,577.3
1,963.6
237.8
+9.6%
20122011
6,150.1
6,943.8
669.3794.7
6,944.8
7,613.1
24.5%
12.9%
31
4T11 4T12 2011 2012
Operating Costs and Expenses
Manageable (distribution): R$ 1,103.4(18.5%)
Generation and Commercialization: R$
445.1(7.5%)
Non manageable (distribution): R$ 4,410.8(74.0%)
* Eliminations not considered** Construction revenue not considered
DISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*2012
279.7
149.1
-46.7%
4Q124Q11 20122011
1,258.9 1,103.4
-12.4%
R$ MN 4Q11 4Q12 Var. 2011 2012 Var.
PMSO 149.6 176.0 17.6% 646.8 692.0 7.0%
Provisions 56,8 250.2 340.8% 299.4 473.1 58.0%
PCLD 35.3 109.4 210.2% 251.3 282.6 12.5%
Contingencies 21.5 140.8 554.9% 48.1 190.5 296.0%
Depreciation 72.3 80.4 11.1% 306.8 293.3 -4.4%Other operational/revenues expenses 1.0 (357.5) - 6.0 (355.0) -
Total 279.7 149.1 -46.7% 1,258.9 1,103.4 -12.4% 32
4T12
EBITDA
CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*2012
Generation 23.0% (EBITDA Margin: 76.4%)
Commercialization 1.9%
(EBITDA Margin: 9.5%)
Distribution 75.2%(EBITDA Margin: 17.4%)
*Eliminations not considered
Distribuição ;
1.127,4; 75,59%
Geração; 336,4; 22,55%
Comercialização;
27,8; 1,86%
4T11 4T12 2011 2012
483.9323.6
+49.5%
4Q11 4Q12 2011 2012
1,456.21,237.8
+17.7%
33
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
EBITDA
871,325 1,238
794
(706) (75)
3811,456
325 1,782
EBITDA – 2011 / 2012(R$ MN)
+ 34.5%
+ 17.7%
(175)
EBITDA2011
EBITDA2012
Net Revenu
e
Non-Managable
Costs
Managable Costs
(PMSO)
Provisions
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
2011
Adjusted EBITDA
2012
Other operational/
revenues
34
LL Ajustado - 2011
Ativos e passivos
Regulatórios
2011 EBITDA Resultado Financeiro
Impostos Outros 2012 Ativos e passivos
Regulatórios
LL Ajustado - 2012
Lucro Líquido e Lucro Líquido Ajustado 2011/2012 - R$ Milhões
EBI TDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBI TDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
Net IncomeADJUESTED NET INCOME
2011 / 2012 (R$ MN)
+ 24.0%
399 58342
218
(85)(57)
6 424
215 639
+ 59.9%
2011 2012EBITDA
Financial Result
Taxes OthersRegulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted Net Income
2011
Adjusted Net Income
2012
35
Dividends
2007 2008 2009 2010 2011 2012
100% 100%
76.3% 81.0%
100.0%86.5%
50%
Minimum Dividend PolicyPayout
1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13
203
351408
187
432363 351
118182 170
92
8787
4.2%
8.2%9.9%
1.7%
8.1% 8.1%6.1%
3.4% 3.3%5.4%
2.4%
Dividend Yeld*Dividends
*Based on the closing price the day before the announcement.
Interest on Equity
257
182205
351363
432
187
408351
203
92
*Based on Net Income of the year. before IFRS adjustments
*
36
2008 2009 2010 2011 2012
Indebtedness leverage
¹ Net debt = total debt (excludes pension fund liabilities) – cash
Net Debt Net Debt/ EBITDA
InvestmentGrade(brA)
1,580
2008
1,637
2009
1,947
2010
1.1 1.2 1.2
2011
3,383
2.7
Rating(brA + )
Rating(Aa2.br)
Rating(AA-(bra))
Dec/11
2012
2.9
4,273
Net Debt¹ (R$ MM) and Net Debt / EBITDA
37
set/12 dez/12
20092010
Custo Real
Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2013 2014 2015 2016 Após 2017
Indebtedness
3T09 3T10 9M09 9M10
Average Term: 4,2 years
AMORTIZATION SCHEDULE* (R$ MN)
Nominal Cost Real Cost
Dec/12Dec/11
3,383.2 4,273.1
NET DEBT
2.7 2.9
*ConsideringHedge
* Principal only
COST OF DEBT
US$/Euro 0.8%
CDI/Selic 72.1%
TJLP 25.1%
2011201020092007 2008 2009 set/10
Custo Real Custo Nominal
2.24%
8.21%5.30%
9.84%
4.87%
11.08%
4.25%
11.03%
2012
Net Debt / EBITDA Others 2.0%
481671 784 886
1,796
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2013 2014 2015 2016 After2017
2011
The pre payment of R$ 375 million in October reduced the cost of debt and extended the amortization schedule
38
2008 2009 2010 2011 2012
Investments
2008 2009 2010 2011 9M11 9M12
CAPEX (R$ MN) CAPEX BREAKDOWN (R$ MN)
2012
201020092008
563.8546.7
928.6
700.6
2011 2012
796.8
Generation Projects
1.9
Quality Improveme
nt122.7
Generation Maintenanc
e23.7
Others206.8
Develop. of Distribution System
215.7
Losses Combat199.8
Investments in Electric Assets (Distribution)
694.1
102.7
453.8
92.9
446.9
116.9
518.8
181.8774.8
153.8
Commerc./Energy
Eficiency26.1
Desenvolv. do Sistema de Distribuição $ 215,7
Combate às Perdas $ 199,8
Melhoria da qualidade $ 122,7
Outros $ 206,8
Manutenção de geração $ 23,7
Novos projetos de geração $ 1,9 Comercialização /Eficiência Energética $ 26,1
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Why invest in Light?
Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones Market growth
Economic Transformation
in the Concession Area
Progress in the Technology ProgramNew network and meters in the pacified favelasSmart metering development“Zero Losses Area” Program
Energy Losses
Reduction
Investment in Renova. Belo Monte and Guanhães (total of 477 MW)SHP Lajes under construction.HPP Itaocara
Growth in the Generation Business
New PPAs starting in 2013 and 2014 Revenues increase with no aditional costs.Very active trading subsidiary
Repricing of Existing Energy
Listed in “Novo Mercado” of Bovespa;Board Committees very active Included in the Sustainability Index (ISE) of Bovespa for the sixth year.
Best-in-Class Corporate
Governance
Sound Dividend Policy: minimum 50% of net income;
Average payout since 2007: 91%
Dividend track Record
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Regulatory Framework
The Provisional Measure 579 was enacted on September 11, 2012 and thereafter converted into Law 12,783 providing for electric power concessions, reduction of sector charges and reasonable tariffs which although these have not directly affected Light, as its concessions will expire only in 2026, resulted in the following developments:
on January 24, 2013, Resolution issued by Aneel approved an average reduction of 19.63% in Light SESA’s tariffs. For residential consumers (low voltage), the reduction was 18.10%. The measure will have no impact on the company’s result or cash flow since it reflects an equal reduction in costs.
on the same date, the distribution of power plants energy quotas was ratified, which had their concession renewed:
(i) but lower to the distribution companies’ contracting needs, thus, causing an involuntary exposure, and only for Light it accounted for average 156 MW; and
(ii) made distribution companies to start sharing the hydrological risks, which before was only supported by generation companies
As of October 2012, an adverse hydrological situation was characterized in Brazil’s electricity sector, the basis of which is mainly hydric, enforcing the System National Operator to dispatch all the thermal power plants available in the system, thus significantly rising the costs of distribution companies by increasing fuel expenditures in availability agreements, increasing System Service Charges due to energy security and acquisitions on the spot market in order to answer that involuntary exposure.
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On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of non-manageable costs related to thermal plant dispatch, involuntary exposure and hydrological risk not covered by the 2013 tariff, as follows:
Eletrobrás will transfer the resources of Energetic Development Accout (CDE) directly to the concessionaires on the same dates and to the same accounts as the respective monthly transfers of the Electricity Trading Chamber (CCEE) financial guarantees.
Aneel will publish the monthly dispatches with the amounts to be transferred by Eletrobrás via the CDE (energy development account).
System Service Charge (ESS) – The monthly transfer will be determined by the difference between the amounts settled in the CCEE and the tariff coverage defined in the last adjustment.
Involuntary Exposure associated with the quotas – The monthly CDE transfer will cover the difference between the difference settlement price (PLD) and the acquisition tariff of the repositioning amount recognized in Light’s last tariff adjustment.
Hydrological Risk - The net monthly amount settled in the CCEE will be transferred directly via the CDE.
The remaining energy purchase and ESS costs not covered by the decree, including fuel costs of availability contracts not included on tariffs, will continue going towards the formation of the regulatory assets and liabilities (CVA) to be determined in Light’s November/13 Tariff Revision.
The Public Hearing opened for regulating decree proposes a transfer rate until 3% of the balance of CVA, the rest will be payed "in cash" from CDE funds.
Regulatory Framework
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Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Company’s control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Company’s strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Company’s actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Company’s assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Company’s businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.
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Contacts
João Batista Zolini CarneiroCFO and IRO
Gustavo WerneckIR Manager
+ 55 21 2211 [email protected]
www.light.com.br/ri
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