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Corporate Presentation January 2013 Corporate Presentation January 2013.

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1 Corporate Presentation January 2013 Corporate Presentation January 2013

2 100% 51% 100% 51% 20% Light Energia S.A. Light Energia S.A. Light Serviços de Eletricidade S.A. Light Serviços de Eletricidade S.A. Light Esco Prestação de Serviços S.A. Light Esco Prestação de Serviços S.A. Lightcom Comercializadora de Energia S.A. Lightcom Comercializadora de Energia S.A. Itaocara Energia Ltda. Itaocara Energia Ltda. Light Soluções em Eletricidade Ltda. Light Soluções em Eletricidade Ltda. Instituto Light Instituto Light Lightger S.A. Lightger S.A. Axxiom Soluções Tecnológicas S.A. Axxiom Soluções Tecnológicas S.A. CR Zongshen E-Power Fabricadora de Veículos Ltda. CR Zongshen E-Power Fabricadora de Veículos Ltda. Renova Energia S.A. Renova Energia S.A. Light S.A. (Holding) Light S.A. (Holding) 25.5% Amazônia Energia S.A. Amazônia Energia S.A. EBL Cia de Eficiência Energética S.A EBL Cia de Eficiência Energética S.A DistributionGeneration Commercialization and Service System Electric Vehicles Institutional Light Holdings Norte Energia S.A. Norte Energia S.A. 2 Central Eólica Fontainha Ltda. Central Eólica Fontainha Ltda. Central Eólica São Judas Tadeu Ltda. Central Eólica São Judas Tadeu Ltda. 100% 21.99% 33% 9.77% Guanhães Energia S.A. Guanhães Energia S.A. 100% 51%

3 3 3 Integrated Net Revenues 2011 – R$ Billion Distribution Energy Consumption in Concession Area (2011) - GWh 1 Generation Private-owned Companies Installed Hydro-generation Capacity (MW) – 2011 Rankings Souce: Companies reports Note: 1 – Captive market + free clients 2 – It doesnt consider the consumption of CSN and CSA Among the largest players in Brazil

4 CEMIG RME LEPSA BNDESPAR MARKET FIP LUCE PARATI CEMIG FIP REDENTOR FIP REDENTOR ENERGIA REDENTOR ENERGIA 26.06% 13.03% 13.46%34.41% 100% 75% 25% 13.03% 100% 96.80% 6.41%19.23% BTG PACTUAL BTG PACTUAL SANTANDER VOTORANTIM BANCO DO BRASIL BANCO DO BRASIL 28.57% 5.50% 28.57% 5.50% 28.57% 5.50% 14.29% 2.74% MINORITY SHAREHOLDERS MINORITY SHAREHOLDERS 3.20% 0.42% Free Float 47.9% 100% 25.64%* FOREIGN NATIONAL 57.02% 42.98% Percentage in blue: indirect stake in Light *12.61% (RME) %(LEPSA) Light S.A. (Holding) Light S.A. (Holding) Controlling Shareholders 52.1% Shareholders Structure 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 Indirect stake in blue 4

5 5 Corporate Governance General Assembly Fiscal Council Board of Directors Auditors Committee Auditors Committee Governance and Sustainability Committee Human Resources Committee Finances Committee Management Committee Chief Executive Officer Chief HR Officer Chief Business Officer Corporate Management Officer Chief 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 FilhoEvandro L. Vasconcelos* Paulo Roberto R. Pinto Chief Communications Officer Luiz Otavio Ziza Valadares LGSXY ADR-OTC Interim*

6 6 6 Distribution Business 4.0 million clients (serving 10 million people) Energy sales (2011) – GWh 70% of the consumption of Rio de Janeiro state (Brazils 2nd GDP) 6 th largest energy distribution company in Brazil (2011)

7 ELECTRICITY CONSUMPTION¹ TOTAL MARKET (GWh) - Quarter ¹ Note: 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. Energy Consumption Distribution 7 RESIDENTIAL 33% INDUSTRIAL 7% OTHERS 15% FREE 15% COMMERCIAL 30% +3.5% ºC 22.4ºC 3Q11 3Q Q ºC 21.7ºC +3.2% 3Q12

8 Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – 3 rd QUARTER FREE CAPTIVE RESIDENTIALINDUSTRIALCOMMERCIAL OTHERS TOTAL 3Q113Q12 3Q113Q12 3Q113Q12 3Q113Q12 3Q113Q % % % % %

9 9 9 Prospects for State of Rio Investments of R$ billion in the State of Rio de Janeiro¹ Period ¹Source: Firjan (Industry Federation of Rio de Janeiro) Oil R$ bn 50.9% Tourism R$ 1.8 bn 0.9% Others R$ 1.9 bn 0.9% Olimpic Facilities R$ 8.6 bn 4.1% Infrastructure R$ 51.0 bn 24.1% Transformation Industry R$ 40.5 bn 19.1%

10 10 Rio de Janeiro Economic activity leading to more demand -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.CampoGde(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)

11 Collection 11 COLLECTION RATE 12 MONTHS COLLECTION RATE BY SEGMENT QUARTER 3Q113Q12 PUBLIC SECTOR LARGE CLIENTSTOTALRETAIL 97.7% 97.8% 96.3% 93.0% 102.2% 99.7% 106.2% 99.8% 97.2% 98.3% Sep/11Sep/12

12 Loss prevention 12 Reflects exclusion of long term delinquent customers from the billing system, according to Resolution 414 by Aneel. Non Technical Losses Distribution (5.615 GWh) Risky Area Non-Risky Area 37% 63% LOSS (12 MONTHS) Technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory Sep/11 Non-technical losses GWh Dec/11Jun/12Mar/12Sep/ % 40.7% 41.2% 33.8% % %

13 13 Loss prevention 33.8% 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/11Dec/11Jun/12Mar/12 Sep/12 Sep/10Dec/10Jun/11Mar/11Jun/10Mar/ % 40.7% 41.2% 40.4% 43.1% 42.7% 42.4% 42.1% 41.8% 41.6% 41.3% 5,316 2,328 2,349 5,229 7,582 7,627 7,665 2,335 5,247 5,615 2,432 8,047 5,457 2,381 7,838 5,330 2,191 2,214 5,313 2,197 5,352 5,312 2,231 5,278 2,215 5,326 2, , ,619 LOSS (12 MONTHS)

14 14 Loss prevention LOSS (12 MONTHS)

15 15 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 gridShielded grid Control room 3 m 9 m Low voltage Mechanical Meter Medium voltage Display Low voltage Medium voltage Centralized meter

16 16 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) CENTRALIZED INDIVIDUAL Sep /

17 17 Losses (before): 26% Losses (current): 7% New Technology Results - Individual

18 18 New Technology Results - Centralized Losses (before): 48% Losses (current): 14%

19 19 Area: Nova Cidade Neighborhood - Nilópolis Zero Losses Area

20 20 Program Gains – An example 300 kWh 100 kWh REAL CONSUMPTION BILLED CONSUMPTION NEW METER INSTALLATION 200 kWh LOST ENERGY ENERGY SAVED 100 kWh BILLED CONSUMPTION INCREASE 100 kWh OTHER EFFECTS (BY-PRODUCTS): CAPEX GOES TO THE RAB BAD DEBT PROVISION REDUCTION OPERATIONAL COSTS REDUCTION

21 21 Transformation of risky areas

22 22 Pacified Communities Batan Cidade de Deus S. Marta Mang. e Babil. Tabaj. e Cabr. Alemão Formiga Andaraí Macacos Salgueiro Cantag. e Pavãoz. Borel e Casabranca 64.7 thousand clients inside pacified communities with new meters and network Santa MartaBeforeAfter Clients Losses90%6% Delinquency70%2%

23 Generation Business

24 24 Installed Capacity HPP Santa Branca 56 MW HPP Ilha dos Pombos 187 MW HPP Fontes Nova 132 MW HPP Underground Nilo Peçanha MW HPP Pereira Passos 100 MW SP RJ HPP Santa Branca Paraiba do Sul River HPP Ilha dos Pombos Installed Capacity 868 MW 100% Lajes Complex 51% SHP Paracambi 13 MW

25 25 Re-pricing of existing energy Contracted Energy (Regulated)² Contracted Energy (Free) Hedge Available Energy Average sale price to free market (R$/MWh)¹ Conventional Energy Balance Assured energy (MW average) ¹Database january ² Average price to Regulated Market (dec/11): R$ 75/MWh

26 26 SP RJ Paraiba do Sul River Lajes Complex SHP Lajes Installed Capacity: 17 MW The construction is to be started by the 2nd half of Operational Start: 2nd half of 2014; Installation License already issued. HPP Itaocara Installed Capacity: 151 MW The construction is to be started by the end of Commercial Operational Start: 2nd half of Preliminary License already issued. Generation Expansion

27 27 (1)Share of RR Participacoes 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. Light 21.99% RR Participações 21.99% Controlling Shareholders 64.6% CS Light 32.3% CS 0% PS RR Participações 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 nd largest winner in the Auction A-3 of 2011 Companys Portfolio 41.8 MW of SHPs in operation under the PROINFA contract MW of wind energy under construction to start the operation in Jul/ 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 Renova

28 28 Renova – Contracts * Does not considered the network basic losses. Contract Sites Term (years) Index Operation Startup (Estimated) Installed Capacity (MW) Average Load Factor (%) Estimated Energy (MW average) CAPEX/MW installed (R$ MN) Loan Tariff (R$/MW) SHPP320IGPM In operation since BNB Contracted LER IPCA In operation since Jul (*)3.996 BNDES Contracted LER IPCA Sep – (*)3.878 BNDES Eligibility Y years and 10 months IPCA Mar (*)3.245 BNDES Eligibility Y IPCA Jan – PPA Light 110 (E)20IPCA Sep (E)100 (E) PPA Light 210 (E)20IPCA Sep (E)100 (E)

29 29 Belo Monte Overview 51.0% CS 0.0% PS 49.0% CS 100.0% 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 MW –Main engine room – MW –Auxiliary engine room – 233 MW Assured Energy (Average MW) – MW Reservoir – 516 Km² Flooded area/generation ratio of 0.05 Km²/MW 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 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 Terms for sale of electricity generated already set. Regulated Market: 70%; Free Market: 20%; Self-producers: 10%. Norte Energia S.A. – Shareholders Profile

30 30 Guanhães TOTAL CAPEX R$ Million PCH Dores de Guanhães Senhora do PôrtoJacaréFortuna IITotal Installed Capacity (MW) Assured Energy (MW average ) ANEEL Authorization11/22/200210/08/200210/29/200212/21/2001 Operation - Start upDec/13 Feb/14Oct/13 Authorization Term30 years (with renewal for 20 years) Equity Debt Light Energia Cemig GT BNDES

31 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% stake ² Considering 21.9% stake ³ Considering 2.5% stake New Generation Projects % (+) Belo Monte³ SHP Paracambi¹ SHP Lajes¹ HPP Itaocara¹ (+) Guanhães¹ (+) Renova² * (+) Renova² Current Capacity * 9 MW SHP + 65 MW Wind Farm (since jul/12)

32 Results

33 33 Net Revenue NET REVENUE (R$MM) NET REVENUE BY SEGMENT (3Q12)* NET REVENUE FROM DISTRIBUTION (3Q12) Commercial 30.1% Industrial 7.6% Others (Captive) 13.1% Network Use (TUSD) 10.3% (Free + Concessionaires) Residential 38.9% Construction Revenue Revenue w/out construction revenue +5.5% Q12 3Q % 9M12 9M % 8.9% Generation 6.8% Distribution 87.9%** Comercialization 5.3% * Eliminations not considered ** Construction revenue not considered

34 Operating Costs and Expenses 34 Manageable (distribution): R$ (21.0%) Generation and Commercialization: R$ (8.9%) Non manageable (distribution): R$ (70.1%) * Eliminations not considered DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 3Q12 R$ MN3Q113Q12Var %9M119M12Var % PMSO % % Provisions % % PCLD % % Contingencies % % Depreciation % % Total % % % 3Q12 3Q11 9M12 9M %

35 EBITDA 35 CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT* 3Q12 Generation 29.5% (EBITDA Margin: 72.1%) Commercialization 2.6% (EBITDA Margin: 8.1%) Distribution 67.9% (EBITDA Margin: 12.9%) *Eliminations not considered % 3Q113Q129M119M %

36 36 EBITDA – 9M11/9M12 (R$ MN) EBITDA EBITDA 9M11 EBITDA 9M12 Net Revenue Non- Managable Costs Managable Costs (PMSO) Provisions Regulatory Assets and Liabilities Adjusted EBITDA 9M11 Adjusted EBITDA 9M % +4.8% Regulatory Assets and Liabilities

37 Net Income 37 NET INCOME – 9M11/9M12 (R$ MN) 9M11 9M12EBITDA Financial Result TaxesOthers Adjusted Net Income 9M11 Regulatory Assets and Liabilities Adjusted Net Income 9M (34) % +25.7%

38 38 PAYOUT AND DIVIDEND POLICY Dividends (R$ MN) Dividend Yield* DIVIDENDS AND DIVIDEND YIELD Based on the closing price of the day before the announcementBased on Net Income of the year. before IFRS adjustments Interest on Equity (R$ MN) 100% 76.3% * Payout 50% % Dividend Policy % Note: Profit Reserve existing in the Balance of 12/31/2011: R$ 163 million % 11.6% 9.5% 16.2% 8.7% Dividends 439 9M % 352

39 39 Indebtedness leverage ¹ Net debt = total debt (excludes pension fund liabilities) – cash Net Debt¹ (R$ MM) and Net Debt / EBITDA Net DebtNet Debt/ EBITDA Investment Grade (brA) Rating (brA + ) Rating (Aa2.br) Rating (AA-(bra)) Dec/11 Sep/

40 Indebtedness 40 Average Term: 3.7 years AMORTIZATION SCHEDULE* (R$ MN) Nominal Cost Real Cost NET DEBT * Principal only COST OF DEBT % 8.54% 5.30% 9.84% 4.87% 11.08% 4.51% 11.01% Sep/12 Net Debt / EBITDA Sep/12Sep/ After * Considering Hedge CDI/Selic 74.2% TJLP 23.5% Others 2.0% US$/Euro 0.4%*

41 Investments 41 CAPEX BREAKDOWN (R$MN) 9M12 CAPEX (R$MN) Investments in Electric Assets (Distribution) +32.5% M12 9M % Losses Combat Quality Improvement 97.9 Develop. of Distribution System Others 59.6 Generation Maintenance 11.5 Generation Projects 1.7

42 42 Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones Market growth 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 Program New network and meters in the pacified favelas Smart metering development Zero Losses Area Program Progress in the Technology Program New network and meters in the pacified favelas Smart metering development Zero Losses Area Program Energy Losses Reduction Energy Losses Reduction Investment in Renova. Belo Monte and Guanhães (total of 548 MW) SHP Paracambi Operational Start SHP Lajes under construction. Investment in Renova. Belo Monte and Guanhães (total of 548 MW) SHP Paracambi Operational Start SHP Lajes under construction. Growth in the Generation Business New PPAs starting in 2013 and 2014 Revenues increase with no aditional costs. Very active trading subsidiary 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 fifth year. Listed in Novo Mercado of Bovespa; Board Committees very active Included in the Sustainability Index (ISE) of Bovespa for the fifth year. Best-in-Class Corporate Governance Sound Dividend Policy: minimum 50% of net income; Average payout over last five years: 91% Sound Dividend Policy: minimum 50% of net income; Average payout over last five years: 91% Dividend track Record Why Invest in Light?

43 43 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 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 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. Important Notice

44 44 Contacts João Batista Zolini Carneiro CFO and IRO Gustavo Werneck IR Manager


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