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Conference Call

Conference Call. 1 st Quarter 2013. Highlights. RESULTS. Decree 7,945/13. Consumption grew 3.7 % compared to 1 Q12, manly driven by the residential and commercial segments whch increased its consumption by 3.2% and 7.8%;

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Conference Call

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  1. ConferenceCall 1stQuarter 2013

  2. Highlights RESULTS Decree 7,945/13 • Consumptiongrew 3.7% compared to 1Q12, manlydrivenbytheresidentialandcommercialsegmentswhchincreased its consumptionby3.2% and 7.8%; • Collection rate (LTM) for the first quarter reached 101.0%, 600 bpsabovethe 1Q12; • Non-tecnicallosses for thepast 12 monthswasof 44,9%, a reductionof 50 bps in comparisonwithdecember/2012; • In 1Q13, investments amounted R$162.7 million, been R$ 127.0million forthedistributionsegment. OPERATIONAL • 6.9% increase in Net Revenue (withoutconstructionrevenue) reachingR$ 1,883.1 million in the 1Q13; • R$ 355,1 million EBITDA in 1Q13, wichrepresents a 18.1% decrease, as a consequenceofthehighercostwithenergypurchase for distribution; • R$ 78.6 millionofnet Income in thefirstquarter, a decreaseof 43.8% over 1Q12. Adjustedby CVA, it reaches R$ 145.4 million, 4.8% above 1Q12. • Net Debtof R$ 4,031.4 million, with a multiple for covenantsat 2,73x. • CDE transfers to thedistributors to neutralize, sinceJanuary/2013, theexposure to the spot market, thehydrologicalriskandtheadditionalcostfromthermalpowerplantsdispatch; • R$ 428 millionwererecognized as a reversal of non-manageable costs (Parcel A), whereas R$ 171 millionwerereceived in Apriland R$ 257 million in May, regardingthe 1Q13 accountings.

  3. EnergyConsumptionDistribution – Quarter TOTAL MARKET (GWh) ¹ +1.8% Free19% +3.7% Industrial5% Others13% 6,407 6,291 6,180 6,087 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. 28.3ºC 27.8ºC 27.0ºC 26.9ºC Commercial28% Residential35% 1Q10 1Q11 1Q12 1Q13 1Note: To preserve comparability in themarketapprovedbyAneel in thetariffadjustmentprocess, thebilledenergyofthefreecustomers Valesul, CSN and CSA wereexcluded in viewofthesecustomers’ plannedmigration to theBasic Network.

  4. Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER +3.7% 6,407 6,180 835 +3.2% 801 +7.8% 2,423 2,348 1.877 2,091 1.748 1,939 214 5.572 -3.7% +3.7% 191 5.379 962 927 966 932 53 49 1,877 1,748 561 568 913 882 401 359 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 OTHERS TOTAL RESIDENTIAL COMMERCIAL INDUSTRIAL FREE CAPTIVE

  5. Collection COLLECTION RATE 12 MONTHS COLLECTION RATE BY SEGMENT QUARTER 104.7% 99.5% 101.0% 100.2% 97.7% 100.6% 99.2% 97.2% 95.0% 92.0% Mar/12 Mar/13 Total Retail Large Clients Public Sector 1Q12 1Q13

  6. LossPrevention ENERGY RECOVERY GWh LOSS (12 MONTHS) 45.4% 36.9 44.9% 43.1% +87.3% 42.2% 41.2% 32.9% 19.7 8,647 8,584 8,047 7,838 7,665 1Q12 1Q13 6,007 6,029 5,316 5,457 5,615 INCORPORATION GWh 2,618 2,577 2,432 23.9 2,381 2,349 +231.9% Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 7.2 Technical losses GWh Non-technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory 1Q13 1Q12

  7. LossesControlInitiativesResultsuntilMarch/13 Zero LossesArea (APZ) Favelas Averagelossesreduction : 49.5 p.p. AverageCollectionincrease : 80.4 p.p. Averagelossesreduction: 23.0 p.p. AverageCollectionincrease: 14.5 p.p.

  8. Net Revenue NET REVENUE BY SEGMENT (1Q13)* NET REVENUE (R$MN) Commercialization 8.6% Generation7.1% +7.5 Distribution84.0%** 2,040.0 1,898.7 157,3 137,4 * Eliminationsnotconsidered ** Constructionrevenuenotconsidered +6,9% 1,883.1 1,761.3 NET REVENUE FROM DISTRIBUTION (1Q13) Network Use (TUSD)(Free + Concessionaires)8.0% 1Q12 1Q13 Residential 45.1% Others (Captive) 11.7% Construction Revenue Revenue w/out construction revenue Industrial 5.5% Commercial 29.7%

  9. OperatingCostsandExpenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 1Q13 -4.8% 333.1 317.1 Nonmanageable (distribution):R$ 1,261.2 (70.8%) GenerationandCommercialization:R$ 203.5 (11.4%) 1Q13 1Q12 Manageable (distribution):R$ 317.1 (17.8%) * Eliminationsnotconsidered ** Constructionrevenuenotconsidered

  10. EBITDA EBITDA BY SEGMENT* 1Q13 CONSOLIDATED EBITDA (R$MN) 433.4 -18.1% 355.1 Distribution 63.8% (EBITDA Margin: 13.5%) Commercialization2.8% (EBITDA Margin: 5.6%) Generation33.4% (EBITDA Margin: 82.1%) 1Q12 1Q13 *Eliminationsnotconsidered

  11. EBITDA EBITDA – 1Q12 / 1Q13(R$ MN) + 5.8% - 18.1% 122 456 101 433 431 42 355 (2) (1) (7) (175) (19) Otheroperational/ revenues EBITDA1Q13 Regulatory Assets and Liabilities Net Revenue Non-Manageable Costs Manageable Costs (PMSO) Provisions Adjusted EBITDA 1Q12 Regulatory Assets and Liabilities EBITDA1Q12 Adjusted EBITDA 1Q13 Equity Pick-up

  12. Net Income ADJUESTED NET INCOME 1Q12 / 1Q13 (R$ MN) + 4.8% - 43.8% 67 145 140 139 (1) 79 30 (4) (78) (9) EBITDA Financial Result Taxes Others Adjusted Net Income 1Q12 Regulatory Assets and Liabilities 1Q12 1Q13 Regulatory Assets and Liabilities Adjusted Net Income 1Q13

  13. Indebtedness AMORTIZATION SCHEDULE* (R$ MN) NET DEBT WithoutPensionFund AverageTerm: 4.7 years 4,031.4 3,991.9 1 982 792 759 616 2.83 394 357 2.73 194 176 42 42 42 Dec/12 Mar/13 Net Debt / EBITDA * Principal only Others 2.0% COST OF DEBT US$/Euro 16.2% 11.08% 11.03% 8.21% 7.73% CDI/Selic57.5% 4.87% 4.25% 2.24% 1.07% TJLP 24.3% 2010 2011 Mar/13 2012 *ConsideringHedge Nominal Cost Real Cost 1Reclassified to reflect the deconsolidation results of jointly controlled companies.

  14. Investments CAPEX BREAKDOWN(R$ MN) 1Q13 CAPEX (R$ MN) Develop. of Distribution System 51.6 928.6 796.8 153.8 700.6 102.7 Commerc./Energy Eficiency26.1 563.8 181.8 116.9 Losses Combat 44.7 774.8 694.1 +13.9% 518.8 162.7 142.9 446.9 Generation Projects 26.9 11.7 35.8 131.2 127.0 Quality Improvement 13.4 2012 1Q13 1Q12 2010 2011 2009 Generation Maintenance 3.1 Investments in Electric Assets (Distribution) Others 17.2

  15. Regulatory Framework • 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 6th, 2013. ENERGY PURCHASE (R$ MN) CHARGES AND TRANSPORT (R$ MN) 1,370.9 314.2 + 31.9% 1,079.9 291.9 -12.8% 362.2 70.4 203.9 818.2 177.9 136.3 144.9 144.9 27.2 215.3 23.5 122.8 267.1 267.1 235.4 79.0 130.9 371.0 371.0 52.8 362.1 52.8 225.7 225.7 46.1 49.5 46.1 70.7 1Q12 CDE transfer 1Q13 1Q12 1Q13without Decree 1Q13 1Q13Without Decree CDE transfer ESS Transport Spot Norte Fluminense Other Charges Itaipu OtherAuctions AvailabilityContracts

  16. 2013 TariffReview Schedule

  17. ImportantNotice 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.

  18. Contacts João Batista Zolini CarneiroCFO and IRO Luiz Felipe Negreiros de SáSuperintendent of Finance and Investor Relations +55 21 2211 2814felipe.sa@light.com.br Gustavo WerneckIR Manager + 55 21 2211 2560gustavo.souza@light.com.br www.light.com.br/ri www.facebook.com/lightri twitter.com/LightRI

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