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Corporate Presentation

Corporate Presentation. November 2013. Light Holdings. 2. Light in numbers. 1 IBGE (2010). Generation. 1. Amazônia Energia Renova Guanhães Energia. 4. 2. 5. Complexo de Lajes. 6. 6. 3. HPP Santa Branca. 7. 4. HPP Ilha dos Pombos. 7. SHP Paracambi. 5. 3.

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Corporate Presentation

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  1. CorporatePresentation November 2013

  2. Light Holdings 2

  3. Light in numbers 1 IBGE (2010) Generation 1 Amazônia EnergiaRenovaGuanhães Energia 4 2 5 Complexo de Lajes 6 6 3 HPP Santa Branca 7 4 HPP Ilha dos Pombos 7 SHP Paracambi 5 3

  4. RankingsAmongthelargest 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 6.9 15,018 6.6 GENERATION PRIVATE-OWNED COMPANIES² Installed Hydro-generation Capacity (MW)– 2012 5,560 2,658 1 – Source: Captive market 2 – Source: Companies reports * Considers the 9 MW of Renova’s SHPs 2,241 2,219 2,012 877 * 4

  5. Shareholders StructureEfficient combination of solid industry and financial players • 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 5

  6. Corporate Governance General Assembly Fiscal Council Board of Directors Finances Committee Human Resources Committee Auditors Committee Governance and Sustainability Committee Management Committee Chief Executive Officer Paulo Roberto R. Pinto Chief Financial and Investor Relations Officer ChiefDistributionOfficer Chief Energy Officer Chief HR Officer Andreia Ribeiro Junqueira João B. Zolini Carneiro Ricardo Cesar C. Rocha Evandro L. Vasconcelos Chief Legal Officer Corporate Management Officer Chief Business Officer Chief Communications Officer Paulo Carvalho Filho Evandro L. Vasconcelos* Luiz Otavio Ziza Valadares Fernando Antônio F.Reis Interim* LGSXY ADR-OTC 6

  7. EnergyConsumptionDistribution – Quarter TOTAL MARKET (GWh) ¹ +2.8% Free16.1% +1.7% Industrial6.0% 5,581 5,486 Others15.8% 5,299 5,144 22.4ºC 22.1ºC 21.7ºC 21.6ºC Commercial29.5% Residential32.6% 3Q12 3Q13 3Q10 3Q11 1Note: To preserve comparability in themarketapprovedbyAneel in thetariffadjustmentprocess. thebilledenergyofthefreecustomers: Valesul, CSN and CSA wereexcluded in viewofthesecustomers’ plannedmigration to theBasic Network. 7

  8. Market Breakdown ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER +1.7% 5,581 5,486 +0.9% +2.5% 899 840 1,854 1,818 1,801 1,808 -0.2% +3.8% 207 181 4,682 4,645 982 983 928 894 48 1,647 47 1,627 643 613 880 847 370 338 3Q12 3Q13 3Q12 3Q13 3Q12 3Q13 3Q12 3Q13 3Q12 3Q13 OTHERS TOTAL RESIDENTIAL COMMERCIAL INDUSTRIAL FREE CAPTIVE 8

  9. LossesandColection Encouraging results already appear from an integrated approach COLLECTION RATE - 12 MONTHS LOSSES (12 MONTHS) 99.6% 98.3% - 1.7% 45.4% 44.9% 44.2% 43.7% 32.0% Sep/12 Sep/13 8,647 8,552 8,584 8,582 Bad Debt Provisions/Gross Revenue (Billed Sales) - 12 Months 5,953 5,905 6,007 6,029 2,618 2,629 2,647 2,577 Mar/13 Jun/13 Sep/13 Dec/12 Technical losses GWh Non-technical losses GWh Sep/111 Dec/111 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory 9 PCLD / Gross Revenue Non recuring provision (4Q12)

  10. Macro StrategyRevenueshieldingtroughefficientcombinationofelectronicmetersandeffectiveworkforce management INSTALLED METERS (Thousand Units) CLIENTS ENERGY AND STATUS 410 341 89 79 LargeClients(hightandmedvoltage)7,600 227 11,500 GWh (48%) 100% Concluded 30 122 297 272 80 7 197 2 LowVoltageLargestClients 22,000 115 78 2,700 GWh (11%) 1/3 as oftodayuntil 2015 2011 2012 Sep/13 2009 2010 Retailandresidentialclients(LowVoltage) 4,100,000 Communities 10,000 GWh (41%) APZ Out ofCommunities 10

  11. New Technology Program 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 • Technology used in regions in which conventional measures are not effective • Areas that present high levels of non-technical losses Control room Actual grid Shielded grid Medium voltage Medium voltage Centralized meter Low voltage Low voltage 9 m 3 m Mechanical Meter Display 11

  12. Zero LossesArea Project: “Light Legal” (APZ – Zero LossesArea) ELECTRONIC METERS • Focused in areaswith 10,000 to 20,000 clientswithhighleveloflossesanddelinquency; • Fully-dedicated teamsoftechniciansandcommercialagents; • Resultsconstantlyandaccuratelymonitoredby Light; • Result-linkedremuneration for servicesprovided; • 22 unitsimplementedwith 360 thousands • clients (9% of total clients); • Additional 200 thousandsclients per year. WORKFORCE MANAGEMENT PARTNERSHIP WITH THE STATE GOVERNMENT 12

  13. EvolutionofAPZsResultsSignificantlossreductionandincreasingcollection rate APZ COLLECTION APZ LOSSES 45.6 % -24.4% 100.7% 99.5% 98.3% 98.2% 97.9% 90.2% 25.9% +8.1% 24.8% 23.6% 22.5% 21.2% Before Before Jun/13 Sep/13 Sep/12 Mar/13 Jun/13 Sep/13 Sep/12 Mar/13 Dec/12 Dec/12 13

  14. RegulatoryAllowancefor Non-TechnicalLossesHigherrecognitionoflosseslinkedtotargetsachievementAdditionalrevenuestobeinvested in lossescombatandbooked as specialobligations (ex-RAB) 2013 2014 2015 2016 2017 2018 RegulatoryLosses Final Proposal (according to methodology) PreliminaryProposal (according to methodology) Target RegulatoryLosseswithPenalty 14

  15. GENERATION BUSINESS

  16. 855 MW Installed Capacity Concessions Expiring Only in 2026 100% 100% Paraiba do Sul River HPP Santa Branca 56 MW HPP Ilha dos Pombos187 MW LajesComplex HPP Ilha dos Pombos RJ SP HPP Santa Branca 100% 100% 100% HPP Fontes Nova 132 MW HPP Underground NiloPeçanha - 380 MW HPP Pereira Passos 100 MW 16

  17. Re-pricing of existing energySignificant price increase due to replacement of former regulated contracts for new ones with free clients CONVENTIONAL ENERGY BALANCE ASSURED ENERGY (MW average) 2013 2014 2015 2016 2017 2018 2019 2020 2021 Contracted Energy (Free) ContractedEnergy (Regulated) Hedge AvailableEnergy 17

  18. Generation Expansion • Growth in renewable generation with experienced partners 18

  19. Evolution of Installed Capacity leading to a more balanced portfolio (MW) + 59.0% 1,498 22 280 245 9 74* 942 13 855 Current Capacity (+) SHP Paracambi¹ Installed Capacity (+) SHP Lajes¹ CapacityAfterExpansion (+) Belo Monte³ (+) Renova² (+) Renova² (+) Guanhães¹ ¹ Considering 51% stake ² Considering21.99% stake ³ Considering2.49% stake 19 * 9 MW SHP + 65 MW Wind Farm (since jul/12)

  20. RESULTS

  21. Net Revenue NET REVENUE BY SEGMENT (3Q13)* NET REVENUE (R$MN) Commercialization 9.9% +3.4% Generation7.6% Distribution82,5%** 5,602.3 5,415.5 455.2 470.0 +0.6% * Eliminationsnotconsidered ** Constructionrevenuenotconsidered +4.1% 1,737.6 1,726.7 5,147.1 4,945.6 122.4 170.3 +3.8% NET REVENUE FROM DISTRIBUTION (3Q13) 1,615.2 1,556.4 Network Use (TUSD)(Free + Concessionaires)8.3% 3Q13 3Q12 9M13 9M12 Residential 40.9% Others (Captive) 13.0% Construction Revenue Revenue w/out construction revenue Industrial 6.5% Commercial 31.3% 21

  22. OperatingCostsandExpenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 3Q13 +3.4% Generation and Commercialization:R$ 206.2 (18.2%) 987.0 954.3 Non manageable (distribution**):R$ 614.6 (54.3%) +4.3% Manageable (distribution):R$ 311.5 (27.5%) 311.5 298.6 * Eliminationsnotconsidered ** Constructionrevenuenotconsidered 3Q13 9M13 3Q12 9M12 22

  23. EBITDA EBITDA BY SEGMENT* 3Q13 CONSOLIDATED EBITDA (R$MN) +40.3% 1,355.1 965.6 Generation14.3% (EBITDA Margin: 79.0%) +161.1% 722.0 Distribution 84.1% (EBITDA Margin: 42.7%) 276.6 Commercialization1.6% (EBITDA Margin: 6.8%) 3Q12 3Q13 9M12 9M13 *Eliminationsnotconsidered 23

  24. EBITDA ADJUSTED EBITDA3Q12 / 3Q13 (R$ MN) - 0.6% + 161.1% (8) 12 (22) 303 (329) 100 722 119 59 393 395 277 Manageable Costs (PMSO) EBITDA3Q13 Regulatory Assets and Liabilities Net Revenue Non-Manageable Costs Adjusted EBITDA 3Q12 Regulatory Assets and Liabilities EBITDA3Q12 Provisions Adjusted EBITDA 3Q13 CDE Fund Others 24

  25. EBITDA ADJUSTED EBITDA 9M12 / 9M13(R$ MN) + 7.6% + 40.3% 71 (60) (36) (109) 192 202 765 1,355 (552) 1,246 1,158 966 Manageable Costs (PMSO) EBITDA9M13 Regulatory Assets and Liabilities Net Revenue Non-Manageable Costs Provisions Adjusted EBITDA 9M12 Regulatory Assets and Liabilities EBITDA9M12 CDE Fund Adjusted EBITDA 9M13 Others 25

  26. Net Income ADJUSTED NET INCOME 3Q12 / 3Q13 (R$ MN) - 35.9% + 282.1% (9) (182) (17) 445 (217) 321 78 162 104 84 EBITDA Financial Result Taxes Others Adjusted Net Income 3Q12 Regulatory Assets and Liabilities 3Q12 3Q13 Regulatory Assets and Liabilities Adjusted Net Income 3Q13 26

  27. Net Income ADJUSTED NET INCOME 9M12 / 9M13 (R$ MN) - 1.1% + 73.6% 8 (166) (36) 390 (72) 127 458 387 391 264 EBITDA Financial Result Taxes Others Adjusted Net Income 9M12 Regulatory Assets and Liabilities 9M12 9M13 Regulatory Assets and Liabilities Adjusted Net Income 9M13 27

  28. Dividends 16.2% 12.4% 11.6% 9.5% 8.7% 2.4% 100% 100% 100% 97,2% 81.0% 76.3% 50% * 2013 2012 2009 2008 2010 2011 Payout MinimumDividendPolicy InterestonEquity Dividends DividendYield* *Based on Net Income of the year, before IFRS adjustments *Basedontheclosingpricethedaybeforetheannouncement 28

  29. Indebtedness AMORTIZATION SCHEDULE* (R$ MN) NET DEBT¹ WithoutPensionFund AverageTerm: 4.3 years 4,151.6 4,056.1 1,009 802 773 666 557 545 2,68 437 441 441 2,62 150 2013 2014 2015 2018 2019 2017 2016 2020 2021 After 2021 Jun/13 Sep/13 * Principal only Net Debt / EBITDA U$/Euro 0.2% COST OF DEBT TJLP15.1% IPCA 10.4% 11.08% 11.03% 8.21% 8.83% Others 1.5% 4.87% 4.25% 2.81% 2.24% CDI 72.8% 2010 2011 sep/13 2012 Nominal Cost Real Cost 29 *ConsideringHedge 1Reclassified to reflect the deconsolidation results of jointly controlled companies.

  30. Investments CAPEX BREAKDOWN(R$ MN) 9M13 CAPEX (R$ MN) Develop. of Distribution System 253.5 928.6 796.8 -18.3% 153.8 700.6 102.7 527.8 563.8 482.2 45.8 181.8 116.9 88.3 774.8 694.1 518.8 482.0 Losses Combat 133.4 393.9 446.9 Others 7.1 302.3 2012 9M13 9M12 2010 2011 2009 Generation 14.1 Commerc./Energy Eficiency 53.8 Investments in Electric Assets (Distribution) Administration 20.3 30

  31. Why invest in Light? Economic Transformation in the Concession Area • Major upcomingevents • Integrationof favelas • Pro-business environment • New plants investments • Expansion of the existing ones • Market growth RepricingofExistingEnergy • New PPAs starting in 2013 and 2014 • Revenues increase with no aditional costs. • Very active trading subsidiary Best-in-ClassCorporateGovernance • Listed in “Novo Mercado” of Bovespa; • Board Committees very active • Included in the Sustainability Index (ISE) of Bovespa for the sixth year. Energy LossesReduction • Progress in theTechnologyProgram • New network andmeters in thepacified favelas • Smartmeteringdevelopment • “Zero LossesArea” Program • Investment in Renova, Belo Monte and Guanhães (total of 547 MW) • SHP Lajes underconstruction. Dividendtrack Record Growth in theGeneration Business • Sound Dividend Policy: minimum 50% of net income; • Average payout since 2007: 91% 31

  32. ImportantNotice 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. 32

  33. Contacts João Batista Zolini CarneiroCFO and IRO Luiz Felipe Negreiros de SáSuperintendent of Finance and Investor Relations +55 21 2211 2814 felipe.sa@light.com.br Gustavo WerneckIR Manager + 55 21 2211 2560gustavo.souza@light.com.br www.facebook.com/lightri http://ri.light.com.br/ twitter.com/LightRI 33

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