Corporate Presentation. January 2013

Transcription

1 Corporate Presentation January 2013

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

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

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

5 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 Chief Distribution Officer Chief Energy Officer Chief HR Officer João B. Zolini Carneiro José Humberto Castro Evandro L. Vasconcelos Andreia Ribeiro Junqueira Chief Legal Officer Corporate Management Officer Chief Business Officer Fernando Antônio F.Reis Paulo Carvalho Filho Evandro L. Vasconcelos* Chief Communications Officer Luiz Otavio Ziza Valadares LGSXY ADR-OTC Interim* 5

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

7 Energy Consumption Distribution ELECTRICITY CONSUMPTION¹ TOTAL MARKET (GWh) - Quarter +3.2% +3.5% OTHERS 15% FREE 15% INDUSTRIAL 7% 21.7ºC 22.1ºC 21.7ºC 22.4ºC 3Q09 3Q10 COMMERCIAL 30% RESIDENTIAL 33% 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. 7

8 Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET 3 rd QUARTER +3.5% % +13.3% % -4.3% FREE CAPTIVE RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL % %

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

10 Economic activity leading to more demand The State of Rio de Janeiro will attract $ 250 billion as investments by 2016 ¹ -Coquepar (42MW) -Procter & Gamble (10MW) -Alpargatas (ND) -RHI (5MW) -Lavazza (3MW) -Ajebras (5MW) -Reluz (ND) -Embelleze (5MW) -MRS (ND) -Nestlé (3MW) -AMBEV (ND) -NeoBus (10MW) -Petrobras (15MW) -CSN (100MW) -Gerdau (30MW) -Usiminas (20MW) -LLX (40MW) -Base Naval(25MW) -Hotel Comfort (3MW) Rio de Janeiro Centro Tecnológico Fundão (ND) ¹Source: Associação Brasileira de Municípios ABM website. -Gerdau (90MW) -Shop.CampoGde(3MW) - Rolls Royce (3MW) -Bio Manguinhos (ND) -Hermes (3MW) -Votorantin (ND) -Ongoing (ND) -Bunge (ND) -AMBEV (2MW) -GE (6MW) -Shop. Metropolitano (10MW) -Maracanã (ND) -Porto Maravilha (ND) -Morar Carioca (ND) -Aeroporto Tom Jobim (5MW) -Estaleiro Inhauma (ND) -Atento (2MW) -Expansão Nova América (4MW) -Expansão Norteshopping (3MW) -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) 10

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

12 Loss prevention LOSS (12 MONTHS) 41.2% 40.7% 40.4% % % 33.8% Reflects exclusion of long term delinquent customers from the billing system, according to Resolution 414 by Aneel Non Technical Losses Distribution (5.615 GWh) % 63% Sep/11 Dec/11 Mar/11 Jun/11 Sep/12 Non-technical losses GWh Technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory Risky Area Non-Risky Area 12

13 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 Centralized meter Low voltage 9 m Medium voltage Low voltage 3 m Mechanical Meter Display 13

14 New Technology Program Meters Installed (Thousands) Monitoring, reading, cutting and reconnection of customers telemetry MCC (Measuring Center Centralized) Sep /12 Prioritization in areas of high losses and aggressiveness to the network Technology hindering inappropriate interference in networks INDIVIDUAL (ITRON) CENTRALIZED (LANDIS GYR. CAM and ELSTER) 14

15 New Technology Results - Individual Losses (before): 26% Losses (current): 7% 15

16 New Technology Results - Centralized Losses (before): 48% Losses (current): 14% 16

17 Zero Losses Area Area: Nova Cidade Neighborhood - Nilópolis FEATURES LV MV TOTAL CLIENTS 10, ,086 NETWORK (KM.) TRANSFORMER (QTY.) 107 POWER (MVA) 12,9 RESULTS COLLECTION (R$ MN) NON-TECHNICAL LOSSES 41.7% ¹ 7.4% ² ¹ Nov/10 ² DeC/11 17

18 Program Gains An example REAL CONSUMPTION NEW METER INSTALLATION 300 kwh BILLED CONSUMPTION 100 kwh LOST ENERGY 200 kwh 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 18

19 Transformation of risky areas 19

20 Pacified Communities Santa Marta Before After Clients Losses 90% 6% Delinquency 70% 2% Batan Alemão Macacos 64.7 thousand clients inside pacified communities with new meters and network Cidade de Deus Andaraí Borel e Casabranca Salgueiro Formiga S. Marta Tabaj. e Cabr. Mang. e Babil. Cantag. e Pavãoz. 20

21 Generation Business

22 Installed Capacity 51% Installed Capacity 868 MW 100% SHP Paracambi 13 MW 100% Lajes Complex RJ Paraiba do Sul River HPP Ilha dos Pombos HPP Ilha dos Pombos 187 MW SP HPP Santa Branca HPP Santa Branca 56 MW 100% 100% 100% HPP Fontes Nova 132 MW HPP Underground Nilo Peçanha MW HPP Pereira Passos 100 MW 22

23 Re-pricing of existing energy Conventional Energy Balance Assured energy (MW average) Average sale price to free market (R$/MWh)¹ Contracted Energy (Regulated)² Contracted Energy (Free) Hedge Available Energy ¹Database january ² Average price to Regulated Market (dec/11): R$ 75/MWh 23

24 Generation Expansion Paraiba do Sul River SP 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. RJ 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. 24

25 Renova 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. Shareholder Structure December 2012 FIP Caixa Ambiental Santander 7.1% 3.0% InfraBrasil 15.2% Location FIP Santa Barbara 6.1% BNDESPAR RR 12.1% Participações(1) 8.5% Wind Farms Inventory (SHPs) Basic Projects (SHPs) Outros; 4.0% RR Participações 21.99% Light 21.99% Controlling Shareholders 64.6% CS Light 32.3% CS 0% PS RR Participações 32.3% CS 0% PS 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 Company s 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 (1) Share of RR Participacoes SA out of the control block 25

26 Renova Contracts 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) SHPP 3 20 IGPM In operation since BNB Contracted LER IPCA In operation since Jul (*) BNDES Contracted LER IPCA Sep (*) BNDES Eligibility Y years and 10 months IPCA Mar (*) BNDES Eligibility Y IPCA Jan PPA Light 1 10 (E) 20 IPCA Sep (E) 100 (E) PPA Light 2 10 (E) 20 IPCA Sep (E) 100 (E) * Does not considered the network basic losses. 26

27 Belo Monte Overview Norte Energia S.A. Shareholders Profile Amazônia Energia 9,77% Self prod. 10,00% Others privates 30,25% Public sector 49,98% 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 49.0% CS 100.0% PS Amazônia Energia Participações S.A 9.77% Norte Energia S.A (Belo Monte) 51.0% CS 0.0% PS 74.5% of total stock 25.5% of total stock 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 Energia s equity in the project estimated at R$ 150 million (Apr. 2010), to be disbursed over 6 years. Expansion of generation portfolio: Increases Light s total generation portfolio by 280 MW Terms for sale of electricity generated already set. Regulated Market: 70%; Free Market: 20%; Self-producers: 10%. 27

28 Guanhães TOTAL CAPEX R$ Million Dores de Guanhães Senhora do Pôrto Jacaré Fortuna II Total PCH Installed Capacity (MW) Assured Energy (MW average ) ANEEL Authorization 11/22/ /08/ /29/ /21/2001 Operation - Start up Dec/13 Dec/13 Feb/14 Oct/13 Authorization Term 30 years (with renewal for 20 years) Equity Debt Light Energia Cemig GT BNDES 28

29 New Generation Projects Investments in Renova. Belo Monte and Guanhães. in line with our strategy of growing in the generation business Installed Capacity (MW) % * Installed Capacity SHP Paracambi¹ (+) Renova² Current Capacity SHP Lajes¹ HPP Itaocara¹ (+) Renova² (+) Belo Monte³ Capacity After (+) Guanhães¹ Expansion ¹ Considering 51% stake ² Considering 21.9% stake ³ Considering 2.5% stake * 9 MW SHP + 65 MW Wind Farm (since jul/12) 29

30 Results

31 Net Revenue NET REVENUE BY SEGMENT ()* NET REVENUE (R$MM) Generation 6.8% Comercialization 5.3% Distribution 87.9%** +5.5% % % % M11 9M12 * Eliminations not considered ** Construction revenue not considered NET REVENUE FROM DISTRIBUTION () Others (Captive Captive) 13.1% Network Use (TUSD) 10.3% (Free + Concessionaires) Industrial 7.6% Construction Revenue Revenue w/out construction revenue Commercial 30.1% Residential 38.9% 31

32 Operating Costs and Expenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* Manageable (distribution distribution): R$ (21.0%) -4.0% % Non manageable (distribution distribution): R$ (70.1%) 9M11 9M12 Generation and Commercialization: R$ ( %) * Eliminations not considered R$ MN Var % 9M11 9M12 Var % PMSO % % Provisions % % PCLD % % Contingencies % % Depreciation % % Total % % 32

33 EBITDA CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT* +4.8% +12.4% Distribution 67.9% (EBITDA Margin: 12.9%) Generation 29.5% (EBITDA Margin: 72.1%) Commercialization 2.6% (EBITDA Margin: 8.1%) 9M11 9M12 *Eliminations not considered 33

34 EBITDA EBITDA 9M11/9M12 (R$ MN) +18.9% +4.8% (350) (34) Adjusted EBITDA 9M11 Regulatory Assets and Liabilities EBITDA 9M11 Net Revenue Non- Managable Costs Managable Costs (PMSO) Provisions EBITDA 9M12 Regulatory Assets and Liabilities Adjusted EBITDA 9M12 34

35 Net Income NET INCOME 9M11/9M12 (R$ MN) M 9M 9M 9M M 9M 9M 9M EBITDA EBITDA EBITDA EBITDA Financial Financial Financial Financial Result Result Result Result Taxes Taxes Taxes Taxes Others Others Others Others Adjusted Adjusted Adjusted Adjusted Net Net Net Net Income Income Income Income 9M 9M 9M 9M Regulatory Regulatory Regulatory Regulatory Assets and Assets and Assets and Assets and Liabilities Liabilities Liabilities Liabilities Regulatory Regulatory Regulatory Regulatory Assets and Assets and Assets and Assets and Liabilities Liabilities Liabilities Liabilities Adjusted Adjusted Adjusted Adjusted Net Net Net Net Income Income Income Income 9M 9M 9M 9M (34) (34) (34) (34)

36 Dividends DIVIDENDS AND DIVIDEND YIELD PAYOUT AND DIVIDEND POLICY 16.2% 12.4% % % % 100% 100% 76.3% 81.0% 100% 97.2% % * M12 Dividends (R$ MN) Interest on Equity (R$ MN) Dividend Yield* Payout Dividend Policy Based on the closing price of the day before the announcement Based on Net Income of the year. before IFRS adjustments Note: Profit Reserve existing in the Balance of 12/31/2011: R$ 163 million. 36

37 Indebtedness leverage Net Debt¹ (R$ MM) and Net Debt / EBITDA Investment Grade (bra) Rating (bra + ) Rating (Aa2.br) Rating (AA-(bra)) Dec/ Sep/12 Net Debt Net Debt/ EBITDA ¹ Net debt = total debt (excludes pension fund liabilities) cash 37

38 Indebtedness NET DEBT AMORTIZATION SCHEDULE* (R$ MN) Average Term: 3.7 years Sep/11 Sep/ After 2016 Net Debt / EBITDA * Principal only COST OF DEBT 9.84% 11.08% 11.01% 8.54% CDI/Selic 74.2% Others 2.0% TJLP 23.5% US$/Euro 0.4%* 5.30% 4.87% 4.51% 3.09% Sep/12 Real Cost C Nominal Cost * Considering Hedge 38

39 Investments CAPEX (R$MN) +32.5% % Generation Maintenance 11.5 Generation Projects 1.7 Quality Improvement 97.9 CAPEX BREAKDOWN (R$MN) 9M12 Others 59.6 Develop. of Distribution System M11 9M12 Investments in Electric Assets (Distribution) Losses Combat

40 Why Invest in Light? Economic Transformation in the Concession Area Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones Market growth Repricing of Existing Energy New PPAs starting in 2013 and 2014 Revenues increase with no aditional costs. Very active trading subsidiary Energy Losses Reduction Progress in the Technology Program New network and meters in the pacified favelas Smart metering development Zero Losses Area Program Best-in-Class Corporate Governance Listed in Novo Mercado of Bovespa; Board Committees very active Included in the Sustainability Index (ISE) of Bovespa for the fifth year. Growth in the Generation Business Investment in Renova. Belo Monte and Guanhães (total of 548 MW) SHP Paracambi Operational Start SHP Lajes under construction. Dividend track Record Sound Dividend Policy: minimum 50% of net income; Average payout over last five years: 91% 40

41 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. 41

42 Contacts João Batista Zolini Carneiro CFO and IRO Gustavo Werneck IR Manager gustavo.souza@light.com.br 42