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Corporate Presentation January 2013

Corporate Presentation January 2013. Light Holdings. Light S.A. (Holding). 20%. 51%. 51%. 100%. 100%. 100%. 100%. 100%. 100%. 100%. 25.5%. Lightger S. A. Light Serviços de Eletricidade S.A. . Light Energia S.A. . Itaocara Energia Ltda. Instituto Light. Axxiom

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Corporate Presentation January 2013

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  1. Corporate Presentation January 2013

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

  3. Rankings Among the largest players in Brazil Integrated Net Revenues2011 – R$ Billion Distribution Energy Consumption in Concession Area(2011) - GWh1 54.590 15.8 50.404 45.101 12.8 9.8 7.8 6.2 29.139 5.4 25.593 22.932 2 Generation Private-owned Companies Installed Hydro-generation Capacity (MW)– 2011 6.908 2.654 2.241 2.210 1.828 866 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% Indirect stake in blue 2.74% • 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 SANTANDER 28.57% 5.50% FIP REDENTOR CEMIG VOTORANTIM 28.57% 75% 19.23% 6.41% 25% 5.50% BANCO DO BRASIL 28.57% 5.50% PARATI MINORITY SHAREHOLDERS 25.64%* 96.80% 100% 0.42% 3.20% FIP LUCE REDENTOR ENERGIA FOREIGN NATIONAL 57.02% 42.98% 100% 13.03% 100% 13.03% LEPSA CEMIG RME BNDESPAR MARKET 13.03% 13.03% 13.46% 34.41% 26.06% Controlling Shareholders 52.1% Free Float 47.9% Light S.A. (Holding) Percentage in blue: indirect stake in Light 4 *12.61% (RME) + 13.03%(LEPSA)

  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 Chief Communications Officer Paulo Carvalho Filho Evandro L. Vasconcelos* Fernando Antônio F.Reis Luiz Otavio Ziza Valadares Interim* LGSXY ADR-OTC

  6. LIGHT Distribution Business 6th largest energy distribution company in Brazil (2011) • 4.0 million clients (serving 10 million people) • Energy sales (2011) – 22.932 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% 5.486 5.299 5.144 4.989 FREE 15% OTHERS 15% INDUSTRIAL 7% 22.4ºC 22.1ºC 21.7ºC 21.7ºC RESIDENTIAL 33% COMMERCIAL 30% 3Q09 3Q10 3Q11 3Q12 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 – 3rd QUARTER +3.5% 5.486 5.299 840 740 -4.3% +13.3% 1.882 1.807 1.801 1.595 4.645 +1.7% +4.6% 180 4.559 155 984 894 968 854 47 45 1.627 1.440 614 541 847 810 427 370 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12 TOTAL OTHERS RESIDENTIAL INDUSTRIAL COMMERCIAL FREE CAPTIVE 8

  9. Prospects for State of Rio Investments of R$ 211.5 billion in the State of Rio de Janeiro¹ Period 2012-2014 Tourism R$ 1.8 bn 0.9% Others R$ 1.9 bn 0.9% Olimpic Facilities R$ 8.6 bn 4.1% Oil R$ 107.7 bn 50.9% Transformation Industry R$ 40.5 bn 19.1% Infrastructure R$ 51.0 bn 24.1% 9 ¹Source: Firjan (Industry Federation of Rio de Janeiro)

  10. Economic activity leading to more demand The State of Rio de Janeiro will attract $ 250 billion as investments by 2016 ¹ • RHI (5MW) • -Lavazza (3MW) • -Ajebras (5MW) -Coquepar (42MW) -Procter & Gamble (10MW) -Alpargatas (ND) • Reluz (ND) • -Embelleze (5MW) -MRS (ND) -Nestlé (3MW) -AMBEV (ND) -NeoBus (10MW) Centro Tecnológico Fundão (ND) • Petrobras (15MW) • -CSN (100MW) • -Gerdau (30MW) • Usiminas (20MW) • -LLX (40MW) • -Base Naval(25MW) • -Hotel Comfort (3MW) Rio de Janeiro -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) ¹Source: Associação Brasileira de Municípios – ABM website.

  11. Collection COLLECTION RATE BY SEGMENT QUARTER COLLECTION RATE 12 MONTHS 106.2% 102.2% 99.7% 99.8% 97.8% 97.7% 96.3% 93.0% 98.3% 97.2% Sep/11 Sep/12 TOTAL RETAIL LARGE CLIENTS PUBLIC SECTOR 3Q11 3Q12

  12. Loss prevention LOSS (12 MONTHS) 43.1% 42.2% 41.2% Reflects exclusion of long term delinquent customers from the billing system,according to Resolution 414 byAneel. 40.7% 40.4% 33.8% 8.047 7.839 7.665 7.627 7.582 NonTechnicalLossesDistribution (5.615 GWh) 5.615 5.457 5.316 5.247 5.229 2.381 2.432 2.335 2.349 2.328 63% 37% Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Non-technical losses GWh Technical losses GWh % Non-technical losses/ LV Market RiskyArea Non-RiskyArea % Non-technical losses / LV Market - Regulatory

  13. Loss prevention Reflects exclusion of long term delinquent customers from the billing system,according to Resolution 414 byAneel. LOSS (12 MONTHS) 43.1% 42.7% 42.4% 42.2% 42.1% 41.8% 41.6% 41.2% 41.3% 40.7% 40.4% 33.8% 7,619 8,047 7,838 7,665 7.549 7,543 7.493 7.544 7,627 7.504 7,582 5,352 5,247 5,316 5,313 5,330 5,278 5,312 5,326 5,457 5,615 5,229 2,197 2,335 2,381 2,432 2,191 2,328 2,349 2,215 2,231 2,214 2,293 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Non-technical losses GWh Technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory

  14. Loss prevention LOSS (12 MONTHS)

  15. 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 Medium voltage Low voltage Low voltage 9 m 3 m Mechanical Meter Display

  16. New Technology Program Meters Installed (Thousands) 283 38 208 38 245 110 170 38 • 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 72 Sep /12 2011 2010 CENTRALIZED INDIVIDUAL (ITRON) (LANDIS GYR. CAM and ELSTER) 16

  17. NewTechnologyResults - Individual Losses (before): 26% Losses (current): 7% 17

  18. NewTechnologyResults - Centralized Losses (before): 48% Losses (current): 14% 18 18

  19. Zero LossesArea Area: Nova Cidade Neighborhood - Nilópolis

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

  21. Transformation of risky areas

  22. Pacified Communities Alemão Batan 64.7 thousandclientsinsidepacifiedcommunitieswithnewmetersand network Macacos Salgueiro Andaraí S. Marta Formiga Borele Casabranca Mang.e Babil. Tabaj. e Cabr. Cidade de Deus Cantag. e Pavãoz.

  23. Generation Business

  24. Installed Capacity Installed Capacity 868 MW 51% 100% SHP Paracambi 13 MW Paraiba do Sul River HPP Ilha dos Pombos 187 MW HPP Ilha dos Pombos Lajes Complex 100% RJ SP HPP Santa Branca HPP Santa Branca 56 MW 100% 100% 100% HPP Fontes Nova 132 MW HPP Underground NiloPeçanha - 380 MW HPP Pereira Passos 100 MW

  25. Re-pricing of existing energy Conventional Energy Balance Assured energy (MW average) Contracted Energy (Free) Contracted Energy (Regulated)² Hedge Available Energy ¹Database january. 2012 ² Averageprice to RegulatedMarket (dec/11): R$ 75/MWh

  26. Generation Expansion Paraiba do Sul River Lajes Complex RJ HPP Itaocara InstalledCapacity: 151 MW The construction is to be started by theendof 2012. CommercialOperational Start: 2nd halfof 2015. PreliminaryLicensealreadyissued. SP SHP Lajes InstalledCapacity: 17 MW The construction is to be started by the 2nd halfof 2012. Operational Start: 2nd halfof 2014; Installation License already issued.

  27. 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. • ShareholderStructureDecember2012 • Auctions Performance • The biggest winner in the Reserver Energy Auction of 2009 • The biggest winner in the Reserver Energy Auction of 2010 • 2nd largest winner in the Auction A-3 of 2011 • Company’sPortfolio • 41.8 MW of SHPs in operation under the PROINFA contract • 294.4 MW ofwindenergyunderconstruction to start theoperation in Jul/2012 • 808.3 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 Controlling Shareholders 64.6% CS Light 32.3% CS 0% PS RR Participações 32.3% CS 0% PS RR Participações 21.99% Light 21.99% • Location Wind Farms Inventory (SHPs) BasicProjects (SHPs) • Share of RR Participacoes SA out of the control block

  28. Renova – Contracts * Does not considered the network basic losses.

  29. Belo Monte Overview Norte Energia S.A. – ShareholdersProfile • Technical data on the concession: • Concession period – 35 years • End of concession – August 25, 2045 • Technical data on the project: • Installed capacity - 11.233 MW • Main engine room – 11.000 MW • Auxiliary engine room – 233 MW • Assured Energy (Average MW) – 4.571 MW • Reservoir – 516 Km² • Flooded area/generation ratio of 0.05 Km²/MW • 5.000 families affected • Estimated project cost (April 2010) – R$ 25.8 billion • Other Informations: • AmazôniaEnergia 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. • AmazôniaEnergia’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%. 51.0% CS 0.0% PS 49.0% CS 100.0% PS 74.5% of total stock 25.5% of total stock Amazônia Energia Participações S.A 9.77% Norte Energia S.A (Belo Monte)

  30. Guanhães TOTAL CAPEX R$ Million 269.2 Light Energia 60.2 Equity Cemig GT 57.8 BNDES 151.2 Debt

  31. New Generation Projects Investments in Renova. Belo Monte andGuanhães. in linewithourstrategyofgrowing in thegeneration business InstalledCapacity (MW) + 59.3% 1.500 22 280 171 77 942 9 74* 13 855 Current Capacity SHP Paracambi¹ Installed Capacity SHP Lajes¹ HPP Itaocara¹ CapacityAfterExpansion (+) Belo Monte³ (+) Renova² (+) Guanhães¹ (+) Renova² ¹ Considering 51% stake ² Considering21.9% stake ³ Considering 2.5% stake * 9 MW SHP + 65 MW Wind Farm (since jul/12) 31

  32. Results

  33. Net Revenue NET REVENUE BY SEGMENT (3Q12)* NET REVENUE (R$MM) Comercialization 5.3% Generation 6.8% Distribution 87.9%** +6.2% 5.450.2 5.129.7 470.0 556.9 +5.5% * Eliminations not considered ** Construction revenue not considered 1.748.0 1.657.1 8.9% 170.3 4.980.2 NET REVENUE FROM DISTRIBUTION (3Q12) 230.6 4.572.8 10.6% 1.577.7 1.426.5 Others (Captive)13.1% Network Use (TUSD)10.3% (Free + Concessionaires) Industrial7.6% 3Q11 9M11 3Q12 9M12 Construction Revenue Revenue w/out construction revenue Residential38.9% Commercial30.1%

  34. Operating Costs and Expenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 3Q12 -2.3% 974.0 951.8 -4.0% Manageable (distribution): R$ 300.2 (21.0%) 312.5 300.2 Nonmanageable (distribution): R$ 1.003.1 (70.1%) 9M11 3Q12 9M12 3Q11 GenerationandCommercialization: R$ 127.4 (8.9%) * Eliminations not considered

  35. EBITDA EBITDA BY SEGMENT* 3Q12 CONSOLIDATED EBITDA (R$MN) +4.8% 959.1 915.5 Generation29.5% (EBITDA Margin: 72.1%) Distribution67.9% (EBITDA Margin: 12.9%) +12.4% 269.5 239.8 Commercialization2.6% (EBITDA Margin: 8.1%) 3Q11 3Q12 9M11 9M12 *Eliminations not considered

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

  37. Net Income NET INCOME – 9M11/9M12(R$ MN) +59.2% 128 392 +25.7% 264 246 44 33 36 11 210 (34) Adjusted Net Income9M11 Regulatory Assets and Liabilities Adjusted Net Income9M12 9M11 Taxes Others EBITDA Financial Result 9M12 Regulatory Assets and Liabilities

  38. Dividends DIVIDENDS AND DIVIDEND YIELD PAYOUT AND DIVIDEND POLICY 16.2% 12.4% 11.6% 9.5% 8.7% 100% 100% 100% 795 97.2% 81.0% 76.3% 595 554 556 439 87 50% 87 469 352 2009 2008 2012 2011 2010 2007 9M12 2008 2009* 2010 2011 Payout Dividend Yield* Interest on Equity (R$ MN) Dividends (R$ MN) 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.

  39. Indebtedness leverage Net Debt¹ (R$ MM) and Net Debt / EBITDA Rating(AA-(bra)) Dec/11 Rating(brA + ) Rating(Aa2.br) InvestmentGrade(brA) 3.622 3.383 1.947 2.8 1.637 2.7 1.580 1.2 1.2 1.1 2008 2009 2010 2011 Sep/12 Net Debt Net Debt/ EBITDA ¹ Net debt = total debt (excludes pension fund liabilities) – cash

  40. Indebtedness NET DEBT AMORTIZATION SCHEDULE* (R$ MN) AverageTerm: 3.7 years 3.621.6 3.143.5 1.477 855 832 754 582 2.8 2.5 198 Sep/11 Sep/12 2012 2013 2014 2015 2016 After 2016 Net Debt / EBITDA * Principal only Others2.0% COST OF DEBT TJLP 23.5% CDI/Selic 74.2% 11.08% 11.01% 9.84% 8.54% US$/Euro 0.4%* 5.30% 4.87% 4.51% 3.09% 2009 2010 Sep/12 2011 * Considering Hedge Nominal Cost Real Cost

  41. Investments CAPEX BREAKDOWN (R$MN) 9M12 CAPEX (R$MN) 928.6 +32.5% Generation Maintenance 11.5 Others 59.6 -10.9% 700.6 169.9 Generation Projects 1.7 592.7 563.8 546.7 527.8 Develop. of Distribution System 200.7 181.8 85.1 758.7 116.9 45.8 92.9 Quality Improvement 97.9 518.8 453.8 507.6 446.9 482.0 Losses Combat 156.4 2008 9M11 2010 2011 2009 9M12 Investments in Electric Assets (Distribution)

  42. Why Invest in Light? Economic Transformation in the Concession Area • Major upcomingevents • Integrationof favelas • Pro-business environment • New plants investments • Expansion of the existing ones • Market growth RepricingofExistingEnergy • NewPPAsstarting in 2013 and2014 • Revenuesincreasewith no aditionalcosts. • Veryactive trading subsidiary Best-in-ClassCorporateGovernance • Listed in “Novo Mercado” of Bovespa; • BoardCommitteesveryactive • Included in theSustainability Index (ISE) of Bovespa for thefifthyear. Energy LossesReduction • Progress in theTechnologyProgram • New network andmeters in thepacified favelas • Smartmeteringdevelopment • “Zero LossesArea” Program Growth in theGeneration Business • Investment in Renova. Belo Monte and Guanhães (total of548 MW) • SHP Paracambi Operational Start • SHP Lajes underconstruction. Dividendtrack Record • SoundDividendPolicy: minimum 50% of net income; • Averagepayout over lastfiveyears: 91% 42

  43. 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.

  44. Contacts João Batista Zolini CarneiroCFO and IRO Gustavo WerneckIR Manager + 55 21 2211 2560gustavo.souza@light.com.br www.light.com.br/ri

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