Upload
lightri
View
226
Download
0
Embed Size (px)
Citation preview
7/28/2019 BTG Pactual Conference
1/44
Corporate Presentation
April 2013
7/28/2019 BTG Pactual Conference
2/44
Light Holdings
Light S.A.(Holding)
100% 51% 20%100% 100% 100%100% 100%51% 25.5%100%
Light Serviosde EletricidadeS.A.
LightgerS.A.
ItaocaraEnergiaLtda.
AmazniaEnergia S.A.
Light EscoPrestao deServios S.A.
LightcomComercializadorade Energia S.A.
Light Soluesem EletricidadeLtda.
InstitutoLight
AxxiomSolues
TecnolgicasS.A.
CR Zongshen
E-PowerFabricadoradeVeculos S.A.
GuanhesEnergia
S.A.
21.99%
RenovaEnergia
S.A.
Central ElicaFontainha
Ltda.
100%
Central ElicaSo Judas
Tadeu Ltda.
100% 9.77%
NorteEnergia
S.A.
33%
EBL Cia deEficinciaEnergtica
S.A.
Light EnergiaS.A.
Distribution Generation Commercialization andServices Institutional Systems ElectricVehicles
51%
2
7/28/2019 BTG Pactual Conference
3/44
RankingsAmong the largest players in Brazil
INTEGRATEDNet Revenues 2012 R$ Billion
GENERATION PRIVATE-OWNED COMPANIES
Installed Hydro-generation Capacity (MW) 2012
37,626
24,71422,737
21,467 20,05415,018
18.5
15.0
11.8
8.56.9
6.6
5,560
2,6582,241 2,219
2,012
877
DISTRIBUTIONEnergy Consumption in Concession Area (GWh) - 2012
1 Source: Captive market
2 Source: Companies reports
* Considers the 9 MW of Renovas SHPs*
3
7/28/2019 BTG Pactual Conference
4/44
Shareholders Structure
CEMIG RME LEPSA BNDESPAR MARKET
FIPLUCE
PARATI
CEMIGFIP
REDENTOR
REDENTOR
ENERGIA
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 DOBRASIL
28.57%
5.50%
28.57%
5.50%
28.57%
5.50%
14.29%2.74%
MINORITY
3.19% 0.42%
Free Float47,9%
25.64%*
FOREIGN NATIONAL
57.78% 42.22%
Percentage in blue: indirect stake in Light
LightS.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
7/28/2019 BTG Pactual Conference
5/44
Corporate Governance
General Assembly
Fiscal Council
Board of Directors
Auditors
Committee Governance andSustainabilityCommittee
Human
ResourcesCommittee
Finances
Committee ManagementCommittee
Chief ExecutiveOfficer
Chief HR Officer
Chief BusinessOfficer
CorporateManagement
Officer
Chief Legal Officer
Chief Financial
and InvestorRelations Officer
Chief Distribution
Officer
Chief Energy
Officer
Joo B. Zolini Carneiro Jos Humberto Castro Evandro L. Vasconcelos Andreia Ribeiro Junqueira
Fernando Antnio F.Reis Paulo Carvalho Filho Evandro L. Vasconcelos*
Paulo Roberto R. Pinto
ChiefCommunications
Officer
Luiz Otavio Ziza Valadares
LGSXYADR-OTC
Interim*
5
7/28/2019 BTG Pactual Conference
6/44
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 (Brazils 2nd GDP)
6th largest energy distribution company in Brazil (2011)
LIGHT
6
7/28/2019 BTG Pactual Conference
7/44
2009 2010 2011 2012
2009 2010 2011 2012
2009
2010
2011
2012
+2.0%
22,932
22,384
24.0C
24.3C
20112010
21,492
23,384
2009
24.5C25.0
C
+2.9%
2012
1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process, the billed energy of thefree customers Valesul, CSN and CSA were excluded in view o f these customers planned migration to the Basic Network.
TOTAL MARKET (GWh)
Energy ConsumptionDistribution Year
Comercial
29%
Industrial
7%
Free14%
Others15%
Commercial29%
Residential35%
With the consumptionno longer billed bythe change in criteria,the total energyconsumption increasein the concession
area would be 3.0%over 2011.
7
7/28/2019 BTG Pactual Conference
8/44
Total Market
FREECAPTIVE
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
2011 2012
+2.0%
19,87720,05
4
22,932
3,0563,330
23,384
+3.0%
3,417 3,521
3,603
185 191
3,712
+9.1%
6,310 6,856
6,967
657743
7,599
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
7/28/2019 BTG Pactual Conference
9/44
Prospects for State of Rio
Investments of R$ 211.5 billion in the State of Rio de Janeiro
Oil
R$ 107.7 bn50.9%
Tourism
R$ 1.8 bn0.9%
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
Source: 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
7/28/2019 BTG Pactual Conference
10/44
Economic activity leading to more demand
Rio de Janeiro
Maracan (ND) Porto Maravilha (ND) Morar Carioca (ND) Aeroporto Tom Jobim
(5MW) Estaleiro Inhauma (ND) Atento (2MW) Expanso Nova Amrica
4MW
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)
Nestl(3MW)
Bio Manguinhos (ND) Hermes (3MW) Votorantin (ND) Ongoing (ND) Bunge (ND)
AMBEV (2MW) GE (6MW) Shop. Metropolitano
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
Source: AssociaoBrasileira de Municpios
Centro
TecnolgicoFundo(ND)
Shopping Village Mall(7MW)
Edifcio TishmanSpeyer (5MW)
Expanso Via Parque(2MW)
Casa Granado(3.5MW)
Hospital So Lucas10
7/28/2019 BTG Pactual Conference
11/44
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 LargeClients
PublicSector
11
7/28/2019 BTG Pactual Conference
12/44
Losses12 months
33.3%
Technical lossesGWh
% Non-technical
losses/ LV Market
% Non-technical
losses /LV Market -
Regulatory
Non-technical lossesGWh
Reflects exclusion of longterm delinquent customers
from the billing system,according to Resolution414 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-RiskyArea
12
7/28/2019 BTG Pactual Conference
13/44
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 ofoperational activities, increase of public awareness and institutional partnerships withinterested agents.
Grid shielding projects
Actual grid Shielded grid
Control room
3m
9m
Lowvoltage
Mechanical Meter
Medium
voltage
Display
Lowvoltag
e
Medium
voltage
Centralize
d meter
13
7/28/2019 BTG Pactual Conference
14/44
2010 2011 2012
New Technology Program
Monitoring, reading, cutting and
reconnection of customers telemetryMCC (Measuring Center Centralized)
Prioritization in areas of high losses andaggressiveness to the network
Technology hindering inappropriateinterference 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
7/28/2019 BTG Pactual Conference
15/44
New Technology ResultsIndividual
Losses (before): 26%
Losses (current): 7%
15
7/28/2019 BTG Pactual Conference
16/44
New Technology Results
Losses (before): 48%
Losses (current): 14%
Centralized
16
7/28/2019 BTG Pactual Conference
17/44
Zero Losses AreaArea: Nova Cidade Neighborhood - Nilpolis
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% 7.4%
Nov/10 Dec/11
17
7/28/2019 BTG Pactual Conference
18/44
Losses Reduction - Business CaseAn example
300 kWh
100 kWh
REALCONSUMPTION
BILLEDCONSUMPTION
NEW METERINSTALLATIO
N
200 kWh
LOST ENERGY
ENERGY
SAVED100 kWh
BILLED CONSUMPTIONINCREASE
100 kWh
OTHER EFFECTS (BY-PRODUCTS):
CAPEX GOESTO THE RAB
BAD DEBTPROVISIONREDUCTION
OPERATIONALCOSTS
REDUCTION
18
7/28/2019 BTG Pactual Conference
19/44
Transformation of risky areas
19
7/28/2019 BTG Pactual Conference
20/44
Tabaj.e Cabr.
Borele Casabranca
Transformation of risky areas
Batan
Cidade deDeus
S. Marta
Mang.e Babil.
Alemo
Formiga
Andara
Macacos
Salgueiro
Cantag.e Pavoz.
64.7 thousand clientsinside pacified
communities with newmeters and network
Santa Marta Before After
Clients 73 1,605
Losses 90% 6%
Delinquency 70% 2%
20
7/28/2019 BTG Pactual Conference
21/44
GENERATIONBUSINESS
7/28/2019 BTG Pactual Conference
22/44
Installed Capacity868 MW
HPP Santa Branca
56 MW
HPP Ilha dosPombos 187 MW
HPP Fontes Nova132 MW
HPP UndergroundNilo Peanha - 380 MW
HPP Pereira Passos100 MW
SP
RJ
HPP SantaBranca
Paraiba do Sul River
HPP Ilha dosPombos100%
100%
100%100%100%
LajesComplex
51%
SHP Paracambi
13 MW
22
7/28/2019 BTG Pactual Conference
23/44
Re-pricing of existing energy
Contracted Energy (Regulated) 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 25
553 539 535 535 535 535 535 535 535 535
Energia contratada (ACR) Energia contratada (ACL) Recursos disponveis para comercializao HedgeAverage sale priceto free market
(R$/MWh)128 135 148 151 155 157 157 157 157 157
Conventional Energy Balance
Assured energy (MW average)
Database january. 2012 Average price to Regulated Market (dec/11): R$ 75/MWh
23
7/28/2019 BTG Pactual Conference
24/44
Generation Expansion
SHP Lajes Installed Capacity: 17 MW The construction is to be started by the
2nd half of 2012. Operational Start: 2nd half of 2014;
Installation License already issued.
HPP Itaocara
Installed Capacity: 151 MW The construction is to be startedby the end of 2012.
Commercial Operational Start:2nd half of 2015.
Preliminary License alreadyissued.
SP
RJ
Paraiba do Sul River
LajesComplex
24
7/28/2019 BTG Pactual Conference
25/44
Renova
(1) Share of RR Participaes SA out of the control block
By the middle of 2011, Light signed an investmentagreement of $360 million and the PPA (Power
Purchased Agreement) of 400MW of installed capacityto have 25.9% stake at Renova. This year BNDESPARis becoming a shareholder after a capital increase inRenova. Light keeps a 21.99% stake.
Light21.99%
RRParticipaes
21.99%
Controlling
Shareholders64.6% CS
Light
32.3% CS
0% PS
RR Participaes
32.3% CS
0% PS
Shareholder Structure
December 2012
Location
Wind Farms
Inventory (SHPs)
Basic Projects (SHPs)
Auctions Performance
The biggest winner in the Reserver Energy Auction of 2009
The biggest winner in the Reserver Energy Auction of 2010 2nd largest winner in the Auction A-3 of 2011
Companys Portfolio
41.8 MW of SHPs in operation under the PROINFA contract
294.4 MW of wind energy under construction to start the
operation in Jul/2012
808.3 MW of contracted wind energy to be delivered between2013 until 2017
Pipeline 5.8 GW under development
Projects in the same area providing synergies and scale gains
RR Participaes
21.99%
Light21.99%
RR Participaes (1)8.5%
BNDESPAR12.1%
InfraBrasil
15.2%
Santander
3.0%
FIP Caixa Ambiental
7.1%
FIP Santa Barbara6.1% Others
4.0%
25
7/28/2019 BTG Pactual Conference
26/44
Renova - Contracts
Contract SitesTerm
(years)Index
OperationStartup
(Estimated)
Installed
Capacity
(MW)
AverageLoad
Factor(%)
EstimatedEnergy(MW
average)
CAPEX
/MWinstalle
d(R$MN)
LoanTariff(R$/M
W)
SHPP 3 20 IGPM
Inoperation
since2008
41.8 61.3 24.2 4.901BNB
Contracted182.06
LER 2009 14 20 IPCAInoperation
sinceJul 2012
293.6 50.8 148.9 (*) 3.996BNDES
Contracted160.65
LER 2010 6 20 IPCASep 2013
162.0 52.7 86.8 (*) 3.878BNDESEligibility
130.76
Y-3 2011 919 yearsand 10months
IPCAMar -2014
212.8 50.5 108.1 (*) 3.245BNDESEligibility
100.91
Y-5 2012 1 20 IPCAJan 2017
22.4 - - - - 90.07
PPA Light 1 10 (E) 20 IPCASep -2015
200.0 50.5(E) 100 (E) 3.245 - -
PPA Light 2 10 (E) 20 IPCA Sep -2016 200.0 50.5 (E) 100 (E) 3.245 - -
26
7/28/2019 BTG Pactual Conference
27/44
Belo Monte - Overview
51.0% CS0.0% PS
49.0% CS100.0% PS
Amaznia EnergiaParticipaes S.A
Norte Energia S.A
(Belo Monte)
9.77%
74.5% of total stock 25.5% of total stock
Technical data on the concession:
Concession period 35 years
End of concession August 25, 2045
Technical data on the project:
Installed capacity 11,233 MW
Main engine room 11,000 MW
Auxiliary engine room 233 MW
Assured Energy (Average MW) 4,571 MW
Reservoir 516 Km
Flooded area/generation ratio of 0.05 Km/MW
5,000 families affected
Estimated project cost (April 2010) R$ 25.8 billion
Other Informations:
Amaznia 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.
Amaznia Energias equity in the project estimated at R$ 150 million (Apr.
2010), to be disbursed over 6 years.
Expansion of generation portfolio:
Increases Lights total generation portfolio by 280 MW
Norte Energia S.A. Shareholders Profile
Public secto r49.98%
Others privates30.25%
Amaznia Energia9.77%
Self Prod .10.00%
27
7/28/2019 BTG Pactual Conference
28/44
1
GuanhesTOTAL CAPEX
R$ MillionPCH
Dores deGuanhes
Senhora doPorto
Jacar 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
7/28/2019 BTG Pactual Conference
29/44
New Generation Projects
Installed Capacity (MW)
InstalledCapacity
Capacity AfterExpansion
Investments in Renova, Belo Monte and Guanhes. In line with our strategyof growing in the generation business
Considering 51% stake
Considering 21.9% stake
Considering 2.5% stake
+ 59.8%
(+) BeloMonte
(+) SHPParacambi
(+) SHPLajes
(+) HPPItaocara (+) Guanhes(+) Renova
1,505
1374* 9
77
175
280
855
(+) RenovaCurrentCapacity
* 9 MW SHP + 65 MW Wind Farm (since jul/12)
942
22
29
7/28/2019 BTG Pactual Conference
30/44
RESULTS
7/28/2019 BTG Pactual Conference
31/44
Net Revenue
Industrial6.8%
NET REVENUE (R$MN)
Generation6.3% Distribution
89.6%**
NET REVENUE BY SEGMENT (2012)*
Commercialization4.1%
* Eliminations not considered
** Construction revenue not
considered
NET REVENUE FROM DISTRIBUTION (2012)
Commercial30.1%
Others (Captive)12.6%
Network Use (TUSD)(Free +Concessionaires)9.4%
Residential41.1%
ConstructionRevenueRevenue 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
7/28/2019 BTG Pactual Conference
32/44
Operating Costs and Expenses
Manageable(distribution): R$1,103.4(18.5%)
Generation andCommercialization: R$
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
7/28/2019 BTG Pactual Conference
33/44
EBITDA
CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*
2012
Generation 23.0%(EBITDA Margin: 76.4%)
Commercialization1.9%
(EBITDA Margin: 9.5%)
Distribution75.2%(EBITDA Margin: 17.4%)
*Eliminations not
considered
Distribuio;
1.127,4;75,59%
Gera22,5
Comercializao;
27,8;1,86%
483.9
323.6
+49.5%
4Q11 4Q12 2011 2012
1,456.2
1,237.8
+17.7%
33
7/28/2019 BTG Pactual Conference
34/44
EBITDAAjustado -
2T11
Ativos ePassivos
Regulatrios
EBITDA -2T11
ReceitaLquida
Custos NoGerenciveis
CustosGerenciveis
(PMSO)
Provises EBITDA -2T12
Ativos ePassivos
Regulatrios
EBITDAAjustado -
2T12
EBITDA
871,3251,238
794
(706) (75)
3811,456
325 1,782
EBITDA 2011 / 2012(R$ MN)
+ 34.5%
+ 17.7%
(175)
EBITDA2011
EBITDA2012
NetRevenu
e
Non-Managable
Costs
ManagableCosts
(PMSO)
Provisions
RegulatoryAssets andLiabilities
RegulatoryAssets andLiabilities
AdjustedEBITDA
2011
AdjustedEBITDA
2012
Otheroperational/
revenues
34
7/28/2019 BTG Pactual Conference
35/44
LL Ajustado-2011
Ativos epassivos
Regulatrios
2011 EBITDA ResultadoFinanceiro
Impostos Outros 2012 Ativos epassivos
Regulatrios
LL Ajustado-2012
EBITDAAjustado -
2T11
Ativos ePassivos
Regulatrios
EBITDA -2T11
ReceitaLquida
Custos NoGerenciveis
CustosGerenciveis
(PMSO)
Provises EBITDA -2T12
Ativos ePassivos
Regulatrios
EBITDAAjustado -
2T12
Net Income
ADJUESTED NET INCOME2011 / 2012 (R$ MN)
+ 24.0%
399 58342
218
(85)(57)
6 424
215 639
+ 59.9%
2011 2012EBITDA
FinancialResult
Taxes OthersRegulatoryAssets andLiabilities
RegulatoryAssets andLiabilities
AdjustedNet Income
2011
AdjustedNet Income
2012
35
7/28/2019 BTG Pactual Conference
36/44
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
87
87
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.
Intereston Equity
257
182205
351363
432
187
408
351
203
92
*Based on Net Income of the year. before IFRSadjustments
*
36
7/28/2019 BTG Pactual Conference
37/44
Indebtedness leverage
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 Debt (R$ MM) and Net Debt / EBITDA
37
7/28/2019 BTG Pactual Conference
38/44
set/12 dez/12
20092010
CustoReal
2009 2010 2011 2012
Custo Nominal Custo Real
Indebtedness
3T10
Average Term: 4,2 years
AMORTIZATION SCHEDULE* (R$ MN)
Nominal Cost Real Cost
Dec/12Dec/11
3,383.24,273.1
NET DEBT
2.7 2.9
*ConsideringHedge
* Principal only
COST OF DEBT
US$/Euro0.8%
CDI/Selic72.1%
TJLP
25.1%
201120102009
2.24%
8.21%
5.30%
9.84%
4.87%
11.08%
4.25%
11.03%
2012
Net Debt / EBITDAOthers2.0%
481671
784 886
1,796
2009 2010 2011 2012
2010 2011 2012
Custo Nominal Custo Real
2013 2014 2015 2016 After2017
The pre payment of R$ 375 million in October reduced the cost of debt and extended the amortization schedule
38
7/28/2019 BTG Pactual Conference
39/44
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
GenerationProjects
1.9
QualityImproveme
nt122.7
GenerationMaintenanc
e23.7
Others206.8
Develop. ofDistribution System
215.7
LossesCombat
199.8
Investments in Electric Assets(Distribution)
694.1
102.7
453.8
92.9
446.9
116.9
518.8
181.8
774.8
153.8
Commerc./Energy
Eficiency26.1
Desenvol
v.do Sistema
de Distribui
o $215,7
da
os,8
39
7/28/2019 BTG Pactual Conference
40/44
Why invest in Light?
Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones Market growth
EconomicTransformation
in theConcession Area
Progress in the TechnologyProgram
New network and meters in thepacified favelas
Smart metering development Zero Losses Area Program
EnergyLosses
Reduction
Investment in Renova. BeloMonte and Guanhes (total of477 MW)
SHP Lajes under construction. HPP Itaocara
Growth in theGenerationBusiness
New PPAs starting in 2013and 2014
Revenues increase with noaditional costs.
Very active trading subsidiary
Repricing ofExisting Energy
Listed in Novo Mercado ofBovespa;
Board Committees very active Included in the Sustainability
Index (ISE) of Bovespa for thesixth year.
Best-in-ClassCorporate
Governance
Sound Dividend Policy:minimum 50% of net income;
Average payout since 2007:91%
Dividend trackRecord
40
7/28/2019 BTG Pactual Conference
41/44
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
SESAs tariffs. For residential consumers (low voltage), the reduction was 18.10%. The measure willhave no impact on the companys 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 Brazils 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.41
7/28/2019 BTG Pactual Conference
42/44
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:
Eletrobrs 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 Eletrobrs 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 Lights 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 Lights November/13 Tariff Revision.
Regulatory Framework
42
7/28/2019 BTG Pactual Conference
43/44
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 Companys 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 Companys 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
Companys 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 Companys assessors or parts related to them or its representatives will have anyresponsibility 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 Companys 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.43
7/28/2019 BTG Pactual Conference
44/44
Contacts
Joo Batista Zolini CarneiroCFO and IRO
Gustavo WerneckIR Manager
+ 55 21 2211 [email protected]
www.light.com.br/ri