Conference Call 1th Quarter 2014
Highlights Energy consumption increased by 7.8% between 1Q13 and 1Q14 due to higher temperatures in the quarter; Captive Market growth 6.7% in 1Q14. Non-technical energy losses in the last 12 months came to 42.4% of billed energy in the low-voltage market, 0.2 p.p. up on the 12 months ended December In comparison with March 2013, there was a 2.5 p.p. decline; Collections stood at 94.6% of billed consumption in 1Q14, 6.4 p.p. down on the same quarter last year; Provisions for past due accounts (PCLD) represented 1.0% of gross billed energy, totaling R$25.3 million, 0.2 p.p. down in 1Q13; OPERATING Net revenue, excluding construction revenue, increased by 20.1% over 1Q13, reaching R$2,118.7 million; Consolidated EBITDA came to R$452.9 million, 27.5% higher than in 1Q13; Net income totaled R$180.5 million in 1Q14, 129.5% up year-on-year; Consolidated net debt closed 1Q14 at R$5,341.8 million, with a net debt/EBITDA ratio of 2.90x; FINANCIAL CDE FUNDS Transfer of CDE funds to the distributors to settle energy purchase commitments with the CCEE; The company recognized reduction of expenses with parcel A of R$181.2 million, R$556.7 million and R$423.1 million, respectively, for January, February and March, giving R$1,161.0 million for the quarter as a whole.
Energy Consumption Distribution – Quarter 1 Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process. the billed energy of the free customer CSN has been considered back. TOTAL MARKET (GWh) ¹ Industrial captive 4.9% Free 17.1% Others captives 13.2% Commercial captive 27.6% Residential captive 37.3% +7.8% 6,841 6, ºC 28.3ºC 1Q12 6,291 7,374 1Q ºC 27.8ºC +5.4% a.a. 1Q131Q14
Total Market RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL 1Q131Q14 ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER 1Q131Q14 1Q131Q14 1Q131Q14 1Q131Q14 FREE CAPTIVE +7.8% 5,572 6,117 6,841 1,269 1,257 7, % , % 2, , ,359 1, , % 2,423 2, % 1,877 2,034
Collection COLLECTION RATE BY SEGMENT Quarter 1Q131Q14 TotalRetailLarge ClientsPublic Sector 101.0% 94.6% 100.2% 93.2% 104.7% 98.0% 97.2% 95.4% PCLD/Gross Revenue (Billed Sales) - 12 Months mar/11 mar/1 3 mar/12 3.0% 2.8% 1.8% -1.0 p.p.
Loss Prevention LOSS (12 MONTHS) % Non-technical losses/ LV Market Non-technical losses GWh Technical losses GWh % Non-technical losses / LV Market - Regulatory 42.2% 43.7% 32.0% 5,738 2,614 8, % Mar/13 Jun/ % 6,029 2,618 8,748 Dec/13 5,955 2,793 8,352 Mar/ % 5,953 2,629 8,647 Sep/13 5,905 2,647 8, % INSTALLED METERS (Thousand Units) Communities Without Communities Mar
Losses Combat Actions APZ Results By March. the program coverd 446 thousand customers in 27 APZs. which ones 22 had the results calculated: %
Net Revenue Industrial (Captive) 5.3% NET REVENUE (R$MN) Generation 9.4% Distribution 77.6%** NET REVENUE BY SEGMENT (1Q14)* Commercialization 13.1% * Eliminations not considered ** Construction revenue not considered NET REVENUE FROM DISTRIBUTION (1Q14) Commercial (Captive) 30.0% Others (Captive) 11.2% Network Use (TUSD) (Free + Concessionaires) 6.7% Residential (Captive) 46.8% Construction Revenue Revenue w/out construction revenue 1Q14 1Q13 1,765 1, % 2,119 6,602 1,922 2,
CDE Fund 9 Involuntary exposure together with unfavorable hydrological scenario and PLD in the ceiling, put the cash flow under pressure in the short term Decree 8203 (jan/14) Decree 8221 (apr/14) Quotas Involuntary Exposure A-1 Auction Involuntary Exposure Involuntary Exposure – New Energy Availabilitie Contracts Hydrological Risk A-0 Auction ContractNA (84,6) (1.245,7) 1.161,0 Short-Term Energy (Spot) Balance CDE Fund Total Aporte CDE -1Q14 (R$ MN)
Operating Costs and Expenses Manageable (distribution): R$ 351 (18.5%) Generation and Commercialization: R$ 315 (16.6%) Non manageable (distribution ** ): R$ 1,227 (64.8%) * Eliminations not considered ** Construction revenue not considered DISTRIBUTION PMSO COSTS (R$MN) COSTS (R$MN)* 1Q14 R$ MN1Q131Q14Var. PMSO(184.0)(187.8)2.1% Provisions(45.2)(65.3)44.3% PCLD(29.0)(25.3)-12.8% Contingencies(16.2)(40.0)146.6% Depreciation(80.6)(85.4)6.0% Other operational/ revenues expenses (7.3)(12.1)66.3% Total(317.1)(350.6)10.6% % 1Q141Q13
EBITDA EBITDA BY SEGMENT (R$ MN) 1Q131Q % Generation and Commercialization Distribution 44.0% 56.0% 36.2% 63.8% 64.9%
EBITDA EBITDA 1Q13 EBITDA 1Q14 Net Revenue Non- Manageable Costs Manageable Costs (PMSO) Provisions Regulatory Assets and Liabilities Adjusted EBITDA 1Q13 Adjusted EBITDA 1Q14 Adjusted EBITDA – 1Q13 / 1Q14 (R$ MN) Other operacional revenues Equity Pikup (217) (8) (18) % % 453 (13) (4) (20) (2)
Net Income 1Q13 1Q14 EBITDAFinancial Result TaxesDepreciation ADJUSTED NET INCOME 1Q13 / 1Q14 (R$ MN) Regulatory Assets and Liabilities Adjusted Net Income 1Q13 Adjusted Net Income 1Q % (51) (5) 181 (12) % 98
Indebtedness Average Term: 3.9 years AMORTIZATION SCHEDULE* (R$ MN) Nominal Cost Real Cost NET DEBT With Pension Fund *ConsideringHedge * Principal only COST OF DEBT Q Net Debt / EBITDA Mar/ % 8.21% 3.63% 10.01% 4.25% 11.03% 9.68% 3.55% TJLP 13.5% CDI 73.9% IPCA 10.7% Others 1.5% U$/Euro 0.4% , After Mar/14Dec/13 5, , ,
Investments CAPEX (R$ MN) CAPEX BREAKDOWN (R$ MN) 1Q14 Generation 3.5 Administration 3.3 Others 2.8 Develop. of Distribution System Losses Combat 48.9 Investments in Electric Assets (Distribution) Commerc./ Energy Eficiency % E 163 1Q13 1Q ,
Dividends
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 Carneiro CFO and IRO Gustavo Werneck Superintendent of Finance and Investor Relations Mariana da Silva Rocha IR Manager ri.light.com.br