Download - Conference Call
Conference Call1st Quarter 2013
Highlights
6.9% increase in Net Revenue (without construction revenue) reaching R$ 1,883.1 million in the 1Q13;
R$ 355,1 million EBITDA in 1Q13, wich represents a 18.1% decrease, as a consequence of the higher cost with energy purchase for distribution;
R$ 78.6 million of net Income in the first quarter, a decrease of 43.8% over 1Q12. Adjusted by CVA, it reaches R$ 145.4 million, 4.8% above 1Q12.
Net Debt of R$ 4,031.4 million, with a multiple for covenants at 2,73x.
CDE transfers to the distributors to neutralize, since January/2013, the exposure to the spot market, the hydrological risk and the additional cost from thermal power plants dispatch;
R$ 428 million were recognized as a reversal of non-manageable costs (Parcel A), whereas R$ 171 million were received in April and R$ 257 million in May, regarding the 1Q13 accountings.
RESULTS
Decree 7,945/13
Consumption grew 3.7% compared to 1Q12, manly driven by the residential and commercial segments whch increased its consumption by 3.2% and 7.8%;
Collection rate (LTM) for the first quarter reached 101.0%, 600 bps above the 1Q12; Non-tecnical losses for the past 12 months was of 44,9%, a reduction of 50 bps in
comparison with december/2012; In 1Q13, investments amounted R$162.7 million, been R$ 127.0 million for the distribution
segment.
OPERATIONAL
Industrial5%
Residencial35%
Comercial28%
Outros Cativos13%
Livre19%
1T10 1T11 1T12 1T13
1T10 1T11 1T12 1T13
Energy Consumption Distribution – Quarter
+3.7%
6,1806,291
26.9ºC
27.0ºC
1Q121Q11
6,087 6,407
1Q10
27.8ºC28.3ºC
+1.8%
1Q13
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
Industrial5%
Free19%
Others13%
Commercial28% Residential
35%
With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 5.3% over 1Q12.
Total Market
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL
1Q12 1Q13
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER
1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13
FREECAPTIVE
1T12 1T13 1T12 1T13 1T12 1T13 1T12 1T13
+3.7%
1T12 1T13
5.3795.572
6,180
801 835
6,407
+3.7%
882 913
93249 53
966
+7.8%
1.7481.877
1,939191 214
2,091
401 359
962
561 568
927
+3.2%
2,348 2,423
-3.7%
1,748 1,877
mar-12 mar-13Total Varejo Grandes Clientes Poder Público
1T12 1T13
Collection
97.2%
COLLECTION RATE12 MONTHS
COLLECTION RATE BY SEGMENTQUARTER
95.0%101.0
%100.2%
92.0%
99.2%104.7
% 100.6%
1Q12
1Q13
97.7% 99.5%
Mar/12 Mar/13Total Retail Large Clients
Public Sector
1T12 1T13
1T12 1T13
mar/12 jun/12 set/12 dez/12 mar/13
Loss Prevention
INCORPORATIONGWh
1Q131Q12
36.9
19.7
+87.3%
ENERGY RECOVERYGWh
1Q131Q12
23.9
7.2
LOSS (12 MONTHS)
42.2%41.2
%32.9%
% Non-technical losses/ LV Market
Non-technical losses GWh
Technical losses GWh
% Non-technical losses / LV Market - Regulatory
5,457
2,381
7,665 7,838
44.9%
+231.9%Mar/13Jun/12Mar/12
2,349
5,316
43.1%
6,007
2,577
8,584
Sep/12
5,615
2,432
8,047
Dec/12
45.4%
6,029
2,618
8,647
mar-12 mar-13
mar-12 mar-13
Losses Control InitiativesResults until March/13
NeighborhoodClient
NumbersNon-Technical Losses / Low Voltage Market *
Collection Rate
Curicica 13.034 12,1% 99,7%Realengo 10.141 16,9% 99,5%Cosmos 34.933 22,8% 107,7%Sepetiba 18.793 33,5% 96,5%Caxias 1 e 2 13.907 19,5% 93,3%Belford Roxo 1 e 2 19.582 32,4% 94,2%Vigário Geral 16.122 16,1% 98,3%Caxias 3 17.239 25,2% 98,7%Nova Iguaçu 1 31.899 31,9% 98,6%Nova Iguaçu 2 20.213 25,0% 95,2%Nilópolis 9.861 28,8% 89,8%Ricardo de Albuquerque 24.433 19,5% 96,4%Mesquita 8.419 38,4% 96,7%Cabritos/Tabajaras/Chapéu Mangueira/Babilônia
5.208 11,9% 97,7%
Total 243.784 24,3% 98,4%* Reflects the results accumulated until mar/13 since the begining of the implementation of each APZ.
Before Current Before CurrentSanta Marta 2009 95,00% 8,22% 0,20% 99,13%
Cidade de Deus 1 2010 52,10% 14,45% 23,10% 78,30%Chapéu Mangueira 16,20% 101,46%
Babilônia 5,40% 99,51%Cabritos 1,40% 96,25%
Tabajaras 9,50% 96,99%Formiga 2011 73,30% 9,37% 31,40% 84,62%
Batan 2012 61,80% 10,66% 1,20% 93,88%Borel 2013 60,50% 31,06% 9,40% 79,10%
Collection
2010 62,70% 14,75%
2011 62,30% 12,47%
Areas Conclusion Year
Losses
Average losses reduction: 23.0 p.p.Average Collection increase: 14.5 p.p.
Average losses reduction : 49.5 p.p.Average Collection increase : 80.4 p.p.
Favelas
Zero Losses Area (APZ)
Net Revenue
Industrial 5.5%
NET REVENUE (R$MN)
Generation 7.1% Distribution
84.0%**
NET REVENUE BY SEGMENT (1Q13)*
Commercialization 8.6%
* Eliminations not considered** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (1Q13)
Commercial 29.7%
Others (Captive) 11.7%
Network Use (TUSD)(Free +
Concessionaires) 8.0% Residential
45.1%Construction RevenueRevenue w/out construction revenue
1T12 1T13
+7.5
1,898.7
2,040.0
1Q131Q12
157,3
1,761.3
1,883.1
137,4
+6,9%
Operating Costs and Expenses
Manageable (distribution): R$ 317.1(17.8%)
Generation and Commercialization: R$
203.5(11.4%)
Non manageable (distribution): R$ 1,261.2(70.8%)
* Eliminations not considered** Construction revenue not considered
DISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*1Q13
1T12 1T13
333.1 317.1
-4.8%
1Q131Q12
R$ MN 1Q12 1Q13 Var.
PMSO 167.6 184.0 9.7%
Provisions 86.5 45.2 -47.7%
PCLD 61.6 29.0 210.2%
Contingencies 24.9 16.2 554.9%
Depreciation 75.7 80.6 6.5%Other operational/revenues expenses 3.2 7.3 127.3%
Total 333.1 317.1 -4.8%
Não gerenciáveis;
70,8%
Gerenciáveis; 17,8%
Geração e Comercialização
; 11,4%
EBITDA
CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*1Q13
Generation 33.4% (EBITDA Margin: 82.1%)
Commercialization 2.8%
(EBITDA Margin: 5.6%)
Distribution 63.8%(EBITDA Margin: 13.5%)
*Eliminations not considered
1T12 1T13
355.1433.4
-18.1%
1Q12 1Q13
Distribuição ;
63,8%; 63,84%
Geração; 33,4%;
33,40%
Comercialização;
2,8%; 2,77%
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
EBITDA
EBITDA1Q12
EBITDA1Q13
Net Revenu
e
Non-Manageabl
e Costs
Manageable Costs (PMSO)
Provisions
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
1Q12
Adjusted EBITDA
1Q13
EBITDA – 1Q12 / 1Q13(R$ MN)
Other operational/
revenues
(2)
433
122
(175) (19) (7) (1)
101 456
+ 5.8%
- 18.1%
42 355431
Equity Pick-up
EBI TDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBI TDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBI TDA -2T12
Ativos e Passivos
Regulatórios
EBI TDA Ajustado -
2T12
Net Income
1Q12 1Q13EBITDA
Financial Result
Taxes Others
ADJUESTED NET INCOME 1Q12 / 1Q13 (R$ MN)
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted Net Income
1Q12
Adjusted Net Income
1Q13
LL Ajustado 4T11
Ativos e passivos
Regulatórios
1T12 EBITDA Resultado Financeiro
Impostos Outros 1T13 Ativos e passivos
Regulatórios
LL Ajustado 4T12
Lucro Líquido e Lucro Líquido Ajustado 1T12/1T13 - R$ Milhões
139
(1)
140
(78)(9)
30
(4)
79
67 145
- 43.8%
+ 4.8%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 After 2022
mar/13
Indebtedness
Average Term: 4.7 years
AMORTIZATION SCHEDULE* (R$ MN)
Nominal Cost Real Cost
NET DEBTWithout Pension Fund
*ConsideringHedge
* Principal only
COST OF DEBT
2012201120102007 2008 2009 set/10
Custo Real Custo Nominal
Mar/13
Net Debt / EBITDA
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
3T09 3T10 9M09 9M10Mar/13Dec/12
Custo Nominal Custo Real
2.24%
8.21%
4.87%
11.08%
4.25%
11.03%
7.73%
1.07%
US$/Euro 16.2%
CDI/Selic 57.5%
TJLP 24.3%
Others
2.0%
357
792 759982
616394
176 42 42 42 194
2009 2010
Custo Real
Custo Real
3,991.9 1
4,031.4
2.83 2.73
1 Reclassified to reflect the deconsolidation results of jointly controlled companies.
Investments
CAPEX (R$ MN)CAPEX BREAKDOWN
(R$ MN)1Q13
Generation Projects
26.9 Quality Improveme
nt13.4
Generation Maintenanc
e3.1 Others
17.2
Develop. of Distribution System
51.6
Losses Combat
44.7
Investments in Electric Assets (Distribution)
Commerc./Energy
Eficiency26.1
2008 2009 2010 2011 2012 2008 2009 2010 2011 9M11 9M1220102009
563.8
928.6
700.6
2011 2012
796.8
694.1
102.7
446.9
116.9
518.8
181.8774.8
153.8
2008 2009 2010 2011 9M11 9M121Q131Q12
131.2 127.011.7 35.8
142.9 162.7+13.9%
On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of part of the non-manageable costs not covered by the 2013 tariff, through the resources transferred from the Energetic Development Accout (CDE) for the following costs:
System Service Charge (ESS) – The monthly transfer will be determined by the amounts settled in the CCEE.
Involuntary Exposure associated with the quotas – The monthly CDE transfer will cover the difference between the difference settlement price (PLD) and the 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. It is worth mentioning that the amounts approved for Light reflect the methodology approved by Aneel on May 6 th, 2013.
Regulatory Framework
1T13 sem decreto
CDE 1T13 1T12CDEtransfer
1Q13without Decree
1Q13 1Q12
362.2
144.9267.1
371.0
225.7
291.970.4144.9267.1
371.0
225.7
27.2122.8235.4
362.170.7
1,370.9
1,079.9 818.2
ENERGY PURCHASE (R$ MN)
Availability Contracts
Other Auctions
Norte Fluminense
ItaipuSpot
1T13 sem decreto
CDE 1T13 1T12CDEtransfer
1Q13Without Decree
1Q13 1Q12
ESS Transport Other Charges
215.3
52.846.1
79.0
52.846.1
23.5
130.9
49.5
136.3
314.2
177.9 203.9
CHARGES AND TRANSPORT (R$ MN)
+ 31.9%-12.8%
2013 Tariff Review Schedule
Date Event
July 11 Aneel forwards first proposal (without remuneration and depreciation) to the concessionary and to the consumers representatives
August 01 Internet presentation of the Tariff Review Porposal prepared by Aneel
From Jul/28 to Aug/16 Regulatory Asset Base fiscalization
September 05 Public Hearing
October 03 Aneel forwards new proposal consolidated to the concessionary and to the consumers representatives
October 24 Aneel Board Meeting
November 07 Periodic Tariff Review Date
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.
Contacts
João Batista Zolini CarneiroCFO and IRO
Luiz Felipe Negreiros de SáSuperintendent of Finance and Investor Relations
+55 21 2211 [email protected]
Gustavo WerneckIR Manager
+ 55 21 2211 [email protected]
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