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Corporate Presentation
January 2015
Light Holdings Diversified structure which is comprised of the distribution, generation
and commercialization segments.
2
4
5 6
7
Light in numbers
Amazônia Energia
Renova
Guanhães Energia
Generation
Complexo de Lajes
Distribution RJ State Concession
Area %
Population¹ 16 mn 11 mn 68%
Area¹ 44,000 Km² 11,000 Km² 25%
GDP¹ R$ 407 bn R$ 207 bn 51%
# Consumers 7 mn 4 mn 57%
# Municipalities 92 31 34%
5
HPP Ilha dos Pombos
SHP Paracambi
HPP Santa Branca
1
2
3
1 IBGE (2010)
4
6
7
3
Rankings Among the largest players in Brazil
INTEGRATED¹
Net Revenues 2013* – R$ Billion
POWER GENERATION PRIVATE-OWNED COMPANIES¹
Installed Hydro-generation Capacity (MW) – 2013
37,767
25,777 22,926
21,783 20,391 15,634
15.6
10.6 9.2
7.4 7.1
5,560
2,652 2,241 2,219
1,799 896
ELECTRICITY DISTRIBUTION²
Energy Consumption in Concession Area** (GWh) - 2013
1 – Source: Companies reports
2 – Source: Relatório do Sistema de Apoio
a ANEEL
* Construction Revenue Included
** Captive Market
*** Considers the 9 MW of Renova’s SHPs
and 19 MW of Brasil PCH
*** 4
14.6
Shareholder Structure Efficient 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
Corporate Governance Decision process assures transparency and value creation
General Assembly
Fiscal Council
Board of Directors
Auditors
Committee
Governance and
Sustainability
Committee
Human
Resources
Committee
Finances
Committee
Management
Committee
Chief Executive
Officer
Corporate
Management Officer
João B. Zolini Carneiro Ricardo Cesar C. Rocha 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
LGSXY ADR-OTC
Interim*
6
Chief Financial and
Investor Relations
Officer
Chief Legal Officer
Chief HR Officer Chief Distribution
Officer Chief Energy Officer
Chief Business
Officer
Energy Consumption Distribution – 9M14
7
1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process.
the billed energy of the free customer CSN has been considered back.
TOTAL MARKET (GWh) ¹
Industrial
captive
5.7%
Free
19.8%
Others
captives
14.6%
Commercial
captive
28.4%
Residential
captive
31.5%
+3.2%
+3.8% p.a.
19,186 17,419 17,259
19,800
23.9ºC 24.4ºC
9M12 9M11
24.3ºC 24.0ºC
9M13 9M14
Market Breakdown
8
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – ACCUMULATED
FREE CAPTIVE
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
+3.2%
9M13 9M14
15,209 16,048
19,186
3,978 3,752
19,800
+2.5%
2,686 2,747
2,837
151 161
2,908
+4.5%
5,909
637 663
6,175
1,039 1,042
4,229
3,190 2,928
3,970
+8.6%
6,212 6,747
9M13 9M14 9M13 9M14 9M13 9M14 9M13 9M14
-6.1%
5,271 5,512
Losses and Collection
9
LOSSES (12 MONTHS)
% Non-technical
losses/ LV Market
Non-technical losses GWh Technical losses GWh
PBD/GROSS REVENUE
(BILLED SALES) - QUARTER
COLLECTION RATE
12 MONTHS
97.9% 102.0%
Sep-13 Sep-14
Sep/14 Sep/13 Mar/14 Jun/14 Dec/13
43.7%
5,738
2,614
8,552
41.3%
5,972
2,843
8,352
41.9%
5,906
2,851
8,815
5,905
2,647
8,757
- 2.4 p.p.
42.2% 42.4%
5,955
2,793
8,748
3Q12 3Q1 4 3Q13
1.9% 2.0%
1.6%
-0.4 p.p.
Loss Reduction Strategy Efficient combination between technology and effective management
Outisde of Communities
Communities
CUSTOMERS ENERGY AND STATUS
Retail and residential clients
(Low Voltage)
4,100,000
Low Voltage
Largest Clients
22,000
Large
Clients
(hight and
med voltage)
7,600
11,500 GWh (48%)
100% Concluded
2,700 GWh (11%)
1/3 as of today until 2015
10,000 GWh (41%)
APZ
10
2010 2011 2013 2012
115
Sep/14
351
30 79
102 227
432
272 330
7
122
197
131
570
439
Mechanical Meter Display
11
Technology: Centralized Measuring Use of new technologies in areas with a high level of losses
Focused in areas with 10,000 to 20,000 clients with high level of losses and
delinquency;
Fully-dedicated teams of technicians and commercial agents;
Results constantly and accurately monitored by Light;
Result-linked remuneration for services provided;
29 units implemented with 511 thousand
clients (12% of total);
200 thousands additional clients per year.
Zero Losses Area Project: “Light Legal”
12
ELECTRONIC
METERS
WORKFORCE
MANAGEMENT
PARTNERSHIP WITH THE STATE
GOVERNMENT
APZ COLLECTION APZ LOSSES
Evolution of APZs Results Significant loss reduction and increasing collection rate
Início da Operação
Início da Operação
Before
50.0 %
19.2%
89.2%
95.5%
Before
100.2% 98.4% 100.3%
93.9%
20.3%
22.3% 22.0%
13
Ma
r/1
4
Ju
n/1
4
Se
p/1
4
Ju
n/1
3
Se
p/1
3
Ma
r/1
4
Se
p/1
4
Ju
n/1
3
Se
p/1
3
-29.7%
+9.2%
De
c/1
3
91.2%
De
c/1
3
22.2%
Ju
n/1
4
16.4%
Regulatory Allowance for Non-Technical Losses Higher recognition of losses linked to targets achievement
Additional revenues to be invested in losses combat and booked as
Special Obligations (ex-RAB)
31,80%
40,41% 40,41%
31,27% 30,95% 30,53% 30,11% 29,69%
39,92%
38,33%
34,49%
30,60%29,40%
28,20%27,01% 25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
2013 2014 2015 2016 2017 2018
14
31,80%
40,41% 40,41%
31,27% 30,95% 30,53% 30,11% 29,69%
39,92%
38,33%
34,49%
30,60%29,40%
28,20%27,01% 25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
31,80%
40,41% 40,41%
31,27% 30,95% 30,53% 30,11% 29,69%
39,92%
38,33%
34,49%
30,60%29,40%
28,20%27,01% 25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
31,80%
40,41% 40,41%
31,27% 30,95% 30,53% 30,11% 29,69%
39,92%
38,33%
34,49%
30,60%29,40%
28,20%27,01% 25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
31,80%
40,41% 40,41%
31,27% 30,95% 30,53% 30,11% 29,69%
39,92%
38,33%
34,49%
30,60%29,40%
28,20%27,01% 25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
Regulatory Losses
Target (every August) Regulatory Losses with Penalty
Final Proposal (according to methodology)
Tariff Readjustment of 2014
Parcel B
0.58%
Transmission and Sector
Charges
7.33%
CVA Balance Other Financial
Items
1.31%
23.18%
2013 Financial
Additions
Tariff Readjustment
-3.95% 19.23%
2.89%
Energy Purchase
11.07%
Transfer of variation in
Parcel A and B
+14.54% +8.64%
Variation in financial
accounts
After November 7th Disco’s customers will observe an average increase of
19.23% in their electricity bills. Residential customers will notice a lower-than-
average increase of 17.76%
Voltage Level
(Consumption
segment)
Average
Increase
A2 20.25%
A3a 19.39%
A4 19.15%
AS 19.83%
B1 (Residential) 17.76%
B2 (Rural) 21.74%
B3 (Commercial) 21.50%
B4 (Il. Public) 22.65%
High Voltage 19.46%
Low Voltage 19.11%
Average
Readjustment 19.23%
From the average customer increase of 19.23%, Parcel A costs accounted for 18.65% and Parcel B for only 0.58%. 15
Average Customer
tariff increase
Generation
855 MW Installed Capacity Concessions Expiring Only in 2026
17
HPP Santa Branca
56 MW
HPP Ilha dos Pombos
187 MW
HPP Fontes Nova
132 MW Underground HPP
Nilo Peçanha - 380 MW HPP Pereira Passos
100 MW
SP
RJ
HPP Santa Branca
Paraiba do Sul River
HPP Ilha dos Pombos
100%
100%
100% 100% 100%
ISO 9001 – Quality Management
14001 – Environmental Management
OHSAS 18001 - Occupational health and Safety Management
Contracted Energy (Free) Hedge Available Energy
18
2015 2016 2017 2018 2019 2020 2021
28 28 28 28 28 28
549 549 549 549 549 549 549
486 456 480 438
337
247 232
35 66 41 83
184 274 289
Average selling price in 2015-2021: R$ 169/MWh (base date: January, 2015)
Assured Energy: 549 MWaverage Energy commercialization focused on the free market
28
Power Generation Expansion Renewable energy generation projects, mainly through partnerships
Project Installed Capacity
(MW)
Assured Energy
(MWaverage) Operational Start Stake
Paracambi 25 20 2012 51%
Renova 652.3 (in operation)
1,853.8 (contracted)
296 (in operation)
914 (contracted)
2008 - 2014
2015 – 2019
15.87%
Belo Monte 11,223 4,571 2016 2.49%
Guanhães 44 25 2015 51%
Lajes 17 15 2016 100%
19
82128 173
219265 280
13
2217
855
13
255
22
1H17 1H19
1,552
855
13
365
22
104
1H14
945
855
13 77
2H13
921
855
13 53
17
2H18
1,520
855
13
365
22
1H18
1,421
855
68.5%
13
312
22
2H17
13
200
22 9
1H15
1,011
855
13 143
2H14
971
855
1H16
1,147
1,319
13
204
22 36
2H15
1,099
855
1,273
855
13
255
22
2H16
1,208
855
13
236
855
Light Energia
SHPP Paracambi¹
Renova²
Guanhães¹
Belo Monte³
SHPP Lajes ¹ 51% Light
² 15.87% Light 3 2.49% Light
Power Generation Expansion Installed Capacity (MW)
Light's proportional Participation
20
RESULTS
Net Revenue
Industrial (Captive)
6.3%
NET REVENUE (R$MN) Generation
7.4%
Distribution
79.4%**
NET REVENUE BY SEGMENT (3Q14)*
Commercialization
13.2%
* Eliminations not considered
** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (3Q14)
Commercial (Captive)
40.9%
Others (Captive) 12.6%
Network Use (TUSD) (Free + Concessionaires)
8.3%
Residential (Captive) 31.9%
Construction Revenue
Revenue w/out construction
revenue
3Q14 9M13 3Q13 9M14
+9.4%
1,557 1,581
634 455
1,679
5,356
4,901
5,301
257 122
1,838
5,936
+10.8% 1,360
128
227
22
+1.5%
+8.2%
Operating Costs and Expenses
Manageable
(distribution) (20.4%)
Generation and
Commercialization (19.6%)
Non manageable
(distribution**) (60.0%)
* Eliminations not considered
** Construction revenue not considered
DISTRIBUTION PMSO COSTS (R$MN) COSTS (R$MN)*
3Q14
COSTS (R$MN)*
9M14
Non manageable
(distribution**) (64.3%)
Generation and
Commercialization (16.2%)
Manageable
(distribution) (19.5%)
R$ MN 3Q13 3Q14 Var. 9M13 9M14 Var.
PMSO (311.5) (326.6) 4.8% (987.0) (979.4) -0.8%
Provisions (19.6) (37.9) 93.3% (97.2) (99.3) 2.2%
PCLD (3.9) (20.3) 419.8% (38.3) (38.3) 0.1%
Contingencies (15.7) (17.6) 12.2% (58.9) (61.0) 3.5%
Depreciation (37.1) (29.8) -19.6% (114.6) (91.2) -20.4%
Other operational/
revenues expenses (86.0) (91.4) 6.3% (250.5) (263.0) 5.0%
Total 58.2 105.6 81.4% 246.1 296.6 20.5%
327
321
988
3,305
979
827
312 327
+4.8%
3T14 3T13 9M14 9M13
987 979
-0.8%
23
Tariff Deficit in distribution
24
The exposure to the spot Market and its high prices, which reflect the low levels of hydro
plant reservoirs and the dispatch of thermal plants, resulted in an expressive deficit for
distributors
Tariff Deficit Balance CDE Fund
Total
ACR Account Funds -9M14 (R$ MN)
(225)
(1,781)
1,556
Decrees 8.203
(Jan/14) and
8.221 (Apr/14)
SPOT market Involuntary Exposure 1,082.2
Availability contracts with thermal plants 416.3
Hydrological Risk 167.5
A-1 Auction Contract 43.4
A-0 Auction Contract 71.2
TOTAL 1,780.6
The remaining balance of R$ 225 MN refers to the portion of items not covered by the decrees, with emphasis on (i)
availability contracts from January; (ii) energy contracted at the A-1 auction; (iii) part of the energy contracted at the A-0
auction, hydrological risk, revenue from hydrological risk deducted from the January and February transfers and from the
cut in the April transfer.
87.4% of deficit
covered
EBITDA by segment (R$ MN)
25
Generation and Commercialization 1
Electricity Distribution
56.0%
Consolidated EBITDA (R$ MN) 3Q14 3Q13 Var. 9M14 9M13 Var.
Distribution 137.1 608.9 -77.5% 524.3 1,011.5 -48.2%
EBITDA Margin (%) 10.1% 43.8% -33.7 p.p. 11.5% 23.1% -11.6 p.p.
Generation 24.5 104.9 -76.7% 295.3 324.4 -9.0%
EBITDA Margin (%) 19.2% 79.0% -59.8 p.p. 62.5% 79.1% -16.6 p.p.
Commercialization 23.6 9.3 155.0% 88.8 23.5 277.0%
EBITDA Margin (%) 10.4% 6.0% 4.5 p.p. 13.1% 5.1% 8.0 p.p.
Others and eliminations (1.7) (1.1) 58.4% (32.5) (4.3) 649.1%
Total 183.6 722.0 -74.6% 875.8 1,355.1 -35.4%
EBITDA Margins (%) 11.6% 46.4% -34.8 p.p. 16.5% 27.6% -11.1 p.p.
185
-74.4% 723
26.0%
74.0%
15.8%
84.2%
3Q13 3Q14 9M13 9M14
74.4%
57.7%
25.6%
42.3%
-33.2%
908
1,359
1Percentages do not consider eliminations
EBITDA
EBITDA
9M13
EBITDA
9M14
Net
Revenue
Non-
Manageable
Costs
Manageable
Costs
(PMSO)
Provisions Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted
EBITDA
9M13
Adjusted
EBITDA
9M14
Adjusted EBITDA – 9M13 / 9M14 (R$ MN)
Other
operacional
revenues
Equity
Pikup
- 16.2%
- 35.4%
1,246
(109)
1,355
400
(896)
0,2 (2) 23 (5)
876
169
1,044
26
Net Income
9M13 9M14 EBITDA Financial
Result
Taxes Depreciation
Adjusted Net Income 9M13 / 9M14 (R$ MN)
Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted Net
Income
9M13
Adjusted Net
Income
9M14
(3)
- 68.9%
- 34.3%
387
(72)
458 (479)
8
169
(14)
143
111
254
27
Dividends
28
Average payout of 86% in the last 5 years
Indebtedness
Average Term: 3.7 years
AMORTIZATION SCHEDULE* (R$ MN)
29 *ConsideringHedge
* Principal only
Nominal Cost Real Cost
COST OF DEBT
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2012 2011 3T14 2007 2008 2009 set/10
Custo Real Custo Nominal
2.24%
8.21%
4.47%
11.27%
4.25%
11.03%
2013
9.68%
3.55%
261
791
1,055
866
1,210
721 733
479 581
TJLP
12.0%
CDI
73.3%
IPCA
10.8% Others
3.5%
U$/Euro *
0.3%
4,151.6
5,229.6 5,543.6
NET DEBT
Net Debt / EBITDA
2009 2010 2011 2012
Custo Nominal Custo Real
Sep/13 Sep/14 Jun/14
20092010
Custo Real
Custo Real
2.99
3.39
2.68
20092010
Custo Real
Custo Real
Investments
CAPEX (R$ MN) CAPEX BREAKDOWN
(R$ MN)
9M14
Generation
18.1
Administration
27.8 Others
7.7
Develop. of
Distribution
System
339.7
Losses
Combat
227.9
Investments in Electric Assets (Distribution)
Commerc./
Energy
Eficiency
8.3
519
2010
701
2011 2012
797
694
103
519
182
775
154
713
132
845
+30.5%
2013
482
9M13 9M14
88
54
394
575
630
929
30
Why invest in Light?
31
Rio as a host of major events
Communities pacification
Pro-business environment
Investment projects hub
Energy Market growth
Economic
Transformation
in the
Concession Area
Progress in the Technology
Program (Smart Grid)
New network and electronic meters
in the pacified areas
“Zero Losses Area” Program
Energy
Losses
Reduction
Projects under construction with
partnerships: Renova, Belo Monte and
Guanhães (total of 588 MW)
SHPP Lajes under construction
(17MW).
Growth in the
Generation
Business
Expiration of Regulated
Contracts (Dec/2013)
New contracts in 2014
Energy available for
commercialization
Energy
Commercialization
focused on the
free market
Listed in “Novo Mercado” of
Bovespa
Board Commitees with strong
participation in the decision making
process
Included in the Sustainability
Index (ISE) for the 7th year
Best Corporate
Governance
Practices
Dividend Policy: minimum 50%
of net income;
Average payout since 2009:
86%
Dividend track
Record
Disclaimer
This presentation may include forward-looking statements according to Brazilian regulations and international movable
values. These statements 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 actual results and statements on
future 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, plans, 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 statements on events or future results.
The information and opinions herein must not be understood as recommendation to potential investors, and no investment
decision should be based on the veracity, the updated or completeness of this information or opinions. None of the
Company’s professionals 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
Contacts
João Batista Zolini Carneiro CFO and IRO
Gustavo Werneck Superintendent of Finance and Investor Relations
+55 21 2211 2560
Mariana da Silva Rocha IR Manager
+ 55 21 2211 2814
33
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