Post on 28-Dec-2015
Conference Call
4º Quarter of 2012
Highlights
24.5% increase in Net Revenue (without construction revenue) reaching R$ 1,963.6 million in the 4Q12 and R$ 6,943.1 million in 2002, an increase of 12.9%.
R$ 483.9 million EBITDA in 4Q12, 49.5% increase. In 2012, EBITDA reached R$ 1,456.2 million, 17.7% higher than in the 2011.
R$ 160.0 million of net Income in 4Q12, an increase of 21.3%. In 2012, net income was up 24.0%, totaling R $ 423.9 million.
On March 25, Board of Directors approved the proposal to distribute additional dividends of R$ 91,770,327.00, or R$ 0.45 per share, to be decided at the OGM in April.
Net debt of R$ 4,273.1 million, and multiple for covenants effect of 2.9x.
RESULTS
CAPITALMARKETS
Consumption grew 5.2% compared to 4Q11, manly driven by the major temperature and by the commercial segment whch increased its consumption by 13.5%. In 2012 the consumption grew 2.0%. Adjusting by the clients with long-term default the consumption increase was 3,0%;
Collection rate (LTM) for the last 12 months reached 98.0%, 60 bps above the same period last year;
Non-technical losses reached 45.4% over the low-voltage market, due to the change in criteria of clients with long-term default;
In 2012, investments amounted R$796.8 million, been R$694.1 million for the distribuition segment only.
OPERATIONAL
4T09 4T10 4T11 4T124T09 4T10 4T11 4T12
Série1
Energy Consumption Distribution – Quarter
+5.2%
5,6735,655
23.9ºC
26.1ºC
4Q114Q10
5,716 5,965
4Q09
24.6ºC25.9º
C
+1.5%
4Q12
1Note: 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.
TOTAL MARKET (GWh) ¹
Industrial
7%
Residencial
35%Comercial
29%
Outros Cativos
15%
Livre
14%
Industrial7%
Free14%
Others15%
Commercial30% Residential
34%
With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 6.3% over 2011.
2009 2010 2011 2012
15,5
17,5
19,5
21,5
23,5
25,5
27,5
2009 2010 2011 2012
2009
2010
2011
2012
+2.0%
22,932
22,384
24.0ºC
24.3ºC
20112010
21,492
23,384
2009
24.5ºC25.0º
C
+2.9%
2012
1Note: 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.
TOTAL MARKET (GWh) ¹
Energy Consumption Distribution – Year
Industrial
7%
Residencial
35%Comercial
29%
Outros Cativos
15%
Livre
14%
Industrial7%
Free14%
Others15%
Commercial29%
Residential35%
With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 3.0% over 2011.
4T11 4T124T11 4T12 4T11 4T12 4T11 4T12 4T11 4T12
Total Market
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
4Q11 4Q12
+5.2%
4,9045,114
5,673
769851
5,965
+4.9%
860 903
905
46 47
949
+13.5%
1,5871,795
1,752
165192
1,988
452 384
1,010
558 612
996
+1.3%
2,006 2,032
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – QUARTER
4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12
-1.3%
FREECAPTIVE
2011 20122011 2012 2011 2012 2011 2012 2011 2012
Total Market
FREECAPTIVE
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
2011 2012
+2.0%
19.87720.05
4
22,932
3,056 3,330
23,384
+3.0%
3,417 3,521
3,603
185 191
3,712
+9.1%
6,3106,856
6,967
657743
7,599
1,731
1,528
3,944
2,213
2,396
3,925
-3.2%
8,418 8,149
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – YEAR
2011 2012 2011 2012 2011 2012 2011 2012
-0.5%
Total Varejo Grandes Clientes Poder Público
2011 2012
dez-11 dez-12
Collection
102.5%
COLLECTION RATE12 MONTHS
COLLECTION RATE BY SEGMENTYEAR
97.4% 98.0%
96.4%94.3%
101.0%
98.8%
102.6%
2011 2012
97.4% 98.0%
Dec/11 Dec/12Total Retail Large Clients
Public Sector
2011 2012
2011 2012
dez/11 mar/12 jun/12 set/12 dez/12
Loss Prevention
INCORPORATIONGWh
20122011
125.2
169.3-26.0%
ENERGY RECOVERYGWh
20122011
157.9140.4
LOSS (12 MONTHS)
41.2%40.4
%
33.3%
% Non-technical losses/ LV Market
Non-technical losses GWh
Technical losses GWh
% Non-technical losses / LV Market - Regulatory
5,316
2,349
7,582 7,665
45.4%
+12.5%
Dec/12Mar/12Dec/11
2,335
5,247
42.2%
5,615
2,432
8,047
Jun/12
Reflets the change on treatment's criteria in the approach to long term delinquent customers, based on Aneel Resolution 414.
5,457
2,381
7,838
Sep/12
43.1%
6,007
2,529
8,536
Net Revenue
Industrial 6.8%
NET REVENUE (R$MN)
Generation 6.3% Distribution
89.6%**
NET REVENUE BY SEGMENT (2012)*
Commercialization 4.1%
* Eliminations not considered
** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (2012)
Commercial 30.1%
Others (Captive) 12.6%
Network Use (TUSD)(Free + Concessionaires) 9.4%
Residential 41.1%
Construction RevenueRevenue w/out construction revenue
4T11 4T12 2011 2012
+19.2
1,815.1
2,162.9
4Q124Q11
199.3
1,577.3
1,963.6
237.8
+9.6%
20122011
6,150.1
6,943.8
669.3794.7
6,944.8
7,613.1
24.5%
12.9%
Não
gerenciáveis;
1.328,5; 82,57%
Gerenciáveis;
149,1; 9,27%
Geração e
Comercialização
; 131,3; 8,16%
4T12
4T11 4T12 2011 2012
Operating Costs and Expenses
Manageable (distribution): R$ 149.1(9.3%)
Generation and Commercialization: R$
131.3(8.2%)
Non manageable (distribution): R$ 1,328.5(82.6%)
* Eliminations not considered
** Construction revenue not considered
DISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*4Q12
279.7
149.1
-46.7%
4Q124Q11 20122011
1,258.9 1,103.4
-12.4%
R$ MN 4Q11 4Q12 Var. 2011 2012 Var.
PMSO 149.6 176.0 17.6% 646.8 692.0 7.0%
Provisions 56,8 250.2 340.8% 299.4 473.1 58.0%
PCLD 35.3 109.4 210.2% 251.3 282.6 12.5%
Contingencies 21.5 140.8 554.9% 48.1 190.5 296.0%
Depreciation 72.3 80.4 11.1% 306.8 293.3 -4.4%
Other operational/revenues expenses
1.0 (357.5) - 6.0 (355.0) -
Total 279.7 149.1 -46.7% 1,258.9 1,103.4 -12.4%
EBITDA
CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*2012
Generation 23,0% (EBITDA Margin: 76,4%)
Commercialization 1,9%
(EBITDA Margin: 9,5%)
Distribution 75,2%(EBITDA Margin: 17,4%)
*Eliminations not considered
Distribuição ;
1.127,4; 75,59%
Geração; 336,4; 22,55%
Comercialização;
27,8; 1,86%
4T11 4T12 2011 2012
483.9323.6
+49.5%
4Q11 4Q12 2011 2012
1,456.2
1,237.8
+17.7%
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
EBITDA
EBITDA4Q11
EBITDA4Q12
Net Revenu
e
Non-Managable
Costs
Managable Costs
(PMSO)
Provisions
32
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
4Q11
Adjusted EBITDA
4Q12
356 324
386
(356)(41)
366
484
133 617
EBITDA – 4Q11 / 4Q12(R$ MN)
+ 73.4%
+ 49.5%
Other operational/
revenues
(194)
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
EBITDA
871,3251,238
794
(706) (75)
3811,456
325 1,782
EBITDA – 2011 / 2012(R$ MN)
+ 34.5%
+ 17.7%
(175)
EBITDA2011
EBITDA2012
Net Revenu
e
Non-Managable
Costs
Managable Costs
(PMSO)
Provisions
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
2011
Adjusted EBITDA
2012
Other operational/
revenues
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12LL Ajustado
4T11Ativos e passivos
Regulatórios
4T11 EBITDA Resultado Financeiro
Impostos Outros 4T12 Ativos e passivos
Regulatórios
LL Ajustado 4T12
Lucro Líquido e Lucro Líquido Ajustado 4T11/4T12 - R$ Milhões
Net Income
4Q11 4Q12EBITDA
Financial Result
Taxes Others
ADJUESTED NET INCOME 4Q11 / 4Q12 (R$ MN)
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted Net Income
4Q11
Adjusted Net Income
4Q12
+ 21.3%
153 21132
160
(53)
(68) (11)
160
88 248
+ 61.8%
LL Ajustado - 2011
Ativos e passivos
Regulatórios
2011 EBITDA Resultado Financeiro
Impostos Outros 2012 Ativos e passivos
Regulatórios
LL Ajustado - 2012
Lucro Líquido e Lucro Líquido Ajustado 2011/2012 - R$ Milhões
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
Net Income
ADJUESTED NET INCOME 2011 / 2012 (R$ MN)
+ 24.0%
399 58342
218
(85)(57)
6 424
215 639
+ 59.9%
2011 2012EBITDA
Financial Result
Taxes OthersRegulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted Net Income
2011
Adjusted Net Income
2012
Dividends
2007 2008 2009 2010 2011 2012
100% 100%
76.3% 81.0%
100.0%
86.5%
50%
Minimum Dividend PolicyPayout
1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13
203
351408
187
432363 351
118182 170
92
8787
4.2%
8.2%9.9%
1.7%
8.1% 8.1%6.1%
3.4% 3.3%5.4%
2.4%
Dividend Yeld*Dividends
*Based on the closing price the day before the announcement.
Interest on Equity
257
182205
351363
432
187
408351
203
92
set/12 dez/12
20092010
Custo Real
Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2013 2014 2015 2016 Após 2017
Indebtedness
3T09 3T10 9M09 9M10
Average Term: 4,2 years
AMORTIZATION SCHEDULE* (R$ MN)
Nominal Cost Real Cost
Dec/12Dec/11
3,383.24,273.1
NET DEBT
2.7 2.9
*ConsideringHedge
* Principal only
COST OF DEBT
US$/Euro 0.8%
CDI/Selic 72.1%
TJLP 25.1%
2011201020092007 2008 2009 set/10
Custo Real Custo Nominal
2.24%
8.21%
5.30%
9.84%
4.87%
11.08%
4.25%
11.03%
2012
Net Debt / EBITDAOthers 2.0%
481671 784 886
1,796
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2013 2014 2015 2016 After2017
2011
The pre payment of R$ 375 million in October reduced the cost of debt and extended the amortization schedule
2008 2009 2010 2011 2012
Investments
2008 2009 2010 2011 9M11 9M12
CAPEX (R$ MN) CAPEX BREAKDOWN (R$ MN)
2012
201020092008
563.8546.7
928.6
700.6
2011 2012
796.8
Generation Projects
1.9
Quality Improveme
nt122.7
Generation Maintenanc
e23.7
Others206.8
Develop. of Distribution System
215.7
Losses Combat199.8
Investments in Electric Assets (Distribution)
694.1
102.7
453.8
92.9
446.9
116.9
518.8
181.8774.8
153.8
Commerc./Energy
Eficiency26.1
Desenvolv. do Sistema de Distribuição $ 215,7
Combate às Perdas $ 199,8
Melhoria da qualidade $ 122,7
Outros $ 206,8
Manutenção de geração $ 23,7
Novos projetos de geração $ 1,9 Comercialização /Eficiência Energética $ 26,1
Regulatory Framework
The Provisional Measure 579 was enacted on September 11, 2012 and thereafter converted into Law
12,783 providing for electric power concessions, reduction of sector charges and reasonable tariffs which
although these have not directly affected Light, as its concessions will expire only in 2026, resulted in the
following developments:
on January 24, 2013, Resolution issued by Aneel approved an average reduction of 19.63% in Light
SESA’s tariffs. For residential consumers (low voltage), the reduction was 18.10%. The measure will
have no impact on the company’s result or cash flow since it reflects an equal reduction in costs.
on the same date, the distribution of power plants energy quotas was ratified, which had their
concession renewed:
(i) but lower to the distribution companies’ contracting needs, thus, causing an involuntary
exposure, and only for Light it accounted for average 156 MW; and
(ii) made distribution companies to start sharing the hydrological risks, which before was only
supported by generation companies
As of October 2012, an adverse hydrological situation was characterized in Brazil’s electricity sector, the
basis of which is mainly hydric, enforcing the System National Operator to dispatch all the thermal power
plants available in the system, thus significantly rising the costs of distribution companies by increasing
fuel expenditures in availability agreements, increasing System Service Charges due to energy security and
acquisitions on the spot market in order to answer that involuntary exposure.
On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of non-
manageable costs related to thermal plant dispatch, involuntary exposure and hydrological risk not covered
by the 2013 tariff, as follows:
Eletrobrás will transfer the resources of Energetic Development Accout (CDE) directly to the
concessionaires on the same dates and to the same accounts as the respective monthly transfers of
the Electricity Trading Chamber (CCEE) financial guarantees.
Aneel will publish the monthly dispatches with the amounts to be transferred by Eletrobrás via the
CDE (energy development account).
System Service Charge (ESS) – The monthly transfer will be determined by the difference
between the amounts settled in the CCEE and the tariff coverage defined in the last
adjustment.
Involuntary Exposure associated with the quotas – The monthly CDE transfer will cover
the difference between the difference settlement price (PLD) and the acquisition 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.
The remaining energy purchase and ESS costs not covered by the decree, including fuel costs of
availability contracts not included on tariffs, will continue going towards the formation of the regulatory
assets and liabilities (CVA) to be determined in Light’s November/13 Tariff Revision.
The Public Hearing opened for regulating decree proposes a transfer rate until 3% of the balance of CVA,
the rest will be payed "in cash" from CDE funds.
Regulatory Framework
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 CarneiroCFO and IRO
Gustavo WerneckIR Manager
+ 55 21 2211 2560gustavo.souza@light.com.br
www.light.com.br/ri