3Q13 Results Presentation

November 13th, 2013

3Q13 Results

2

Disclaimer

The stand-alone and consolidated financial statements were prepared in accordance with the accounting principles adopted in Brazil, which include corporation law, the pronouncements, instructions and interpretations issued by the Accounting Pronouncements Committee (CPC) and the regulations of the Securities and Exchange Commission of Brazil (CVM), combined with specific legislation issued by the National Electric Power Agency (ANEEL). As the industry regulator, ANEEL has powers to regulate the concessions. The results are usually presented in both IFRS and former formats in order to permit comparisons with other periods. However, the results presented in “Regulatory” format are not audited. ALUPAR uses the audited results based on the IFRS principles to declare dividends.

The forward-looking statements contained in this document relating to the business outlook, projections of operational and financial results and the growth prospects of ALUPAR are merely projections, and as such are based exclusively on management’s expectations for the future of the business. These expectations depend materially on changes in market conditions and the performance of the Brazilian economy, the sector and international markets and therefore are subject to change without prior notice.

3

Alupar at a GlanceAlupar is the only listed company in Brazil operating in transmission and generation segments

Geographic Footprint of the Assets

Operational Under construction

Portfolio of 28 long-term

concessions, starting to expire

in 2030 (transmission) and

2034 (generation)

Transmission

Generation

Alupar Concession – Transmission and Generation

Today

LifetimeTranschile

Operating Under Construction

Lifetime

4

Company’s Assets

Generation Under Construction TBE1 TBE group’s assetsTransmission

Nota:

(1) TBE holds 10 transmission assets: EATE, EBTE, ECTE, ENTE, ERTE, ESDE, ETEP; ETSE, LUMITRANS e STC.

V 50.01%

T 42.51%

100%

50.01%V 50.02%

T 50.02%

V 100%

T 50.01%

70.02%

V 50.01%

T 42.51%

99.90%

41.00%

41.00%

41.00%

Transminas

Lavrinhas

47.51%

50.99%

V 50.02%

T 50.02%

51.00%

80.00%15.00% 80.00% 20.00%

Transirapé

Transleste

Rio Claro

Ijuí

Queluz

STC

EBTE

Transudeste

Lumitrans

ETES

50.01%

V 100%

T 50.01%STN ENTEEATE

ECTE

ERTE

ETEP

ETEM62.6%

ETVG

ESDE

Ferreira

Gomes

100%

TNE51.00%

Risaralda99.86%

100%

ETSE100%

46.00%

TME

50.99%Energia

dos Ventos

51.00%Transchile

TBE

TBE

TBE

TBE

TBE TBE TBE

TBE TBE

TBE

10.00%

10.00%

10.00%

Verde 882.00%

5

Alupar’s Business Culture

Financial Discipline ��

Responsible and Sustainable Growth ��

Efficient Capital Structure ��

Corporate Governance and Transparency ��

Skilled and Motivated Team ��99.86%

6

Material Fact, August 29th, 2013

Negotiation of 13,1 MW average of SHPP Verde 8

Auction: 06/2013 - ANEEL

� Location: Rio Verde, municipality of Santa Helena de Goiás (GO)

� Installed Capacity: 30.0 MW

� Assured Energy: 18.7 MW

� Start-up (ANEEL): 2018

7

Material Fact, August 29th, 2013

Withdrawal of the consortium for participation in the HPP Sinop’s bidding process

8

TNE – Installation License for the expansion of the Boa Vista substation

Notice to the Market, October 4th, 2013

A ALUPAR INVESTIMENTO S.A., a publicly-held company registered with the CVM under no 2149-0, with

headquarters at Avenida Doutor Cardoso de Melo, 1.855, Bloco I, 9º andar, sala A, in the city and state of São

Paulo, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no. 08.364.948/0001-38 (“Alupar”),

hereby informs its shareholders and the market in general that, as published in today’s Diário Oficial da

União, its subsidiary, TRANSNORTE ENERGIA S.A. (“TNE”) has received Installation License 968/2013 from

the Brazilian Institute of the Environment and Renewable Natural Resources (“IBAMA”), which is valid for

eighteen (18) months as of its issue date, September 30, 2013, for the Expansion of the Boa Vista Substation

and the Installation of a Static Var Compensator in the municipality of Boa Vista (RR).

9

Material Fact, October 17th, 2013

Acquisition of the Trasnmineiras’s finalized by EATE

V 50.02%

T 50.02%

70.02%

Transminas

Transirapé

Transleste

Transudeste

EATE

10.00%

10.00%

10.00%

Before – Indirect Interest 28.71%

41.00%

41.00%

41.00%

� Acquisition of 4,956,900 preferred shares issued by Transleste, held by ORTENG

� Acquisition of 3,000,000 preferred shares issued by Transudeste, held by ORTENG

� Acquisition of 2,234,049 preferred shares issued by Transirapé, held by ORTENG

� Total Amount: 33,5 millions

Now – Indirect Interest 33.71%

70.02%

Transminas

Transirapé

Transleste

Transudeste

41.00%

41.00%

41.00%

10

Financial settlement and consequent acquisition of SHPP’s preferred shares

Material Fact, October 28th, 2013

QUELUZ

LAVRINHAS

Before

V 50.01%

� Acquisition of 3,285,627 preferred shares issued by Lavrinhas, held by FI-FGTS

� Acquisition of 3,387,982 preferred shares issued by Queluz, held by FI-FGTS

� Total Amount: 11,5 millions

T 35.01%

V 50.01%

T 35.01%

QUELUZ

LAVRINHAS

Now

V 50.01%

T 42.51%

V 50.01%

T 42.51%

11

The Diversion of the Araguari river

Notice to the Market, November 4th, 2013

ALUPAR INVESTIMENTO S.A., a publicly-held company registered with the CVM under no 21490, with

headquarters at Avenue Doutor Cardoso de Melo, 1.855, Bloco I, 9th floor, room A, in the city and state of

São Paulo, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no. 08.364.948/0001-38 (“Alupar”),

hereby informs its shareholders and the market in general that, on this date, its subsidiary Ferreira Gomes

Energia S.A. concluded the diversion of the Araguari river via the spillways of the 252 MW Ferreira Gomes

hydropower plant, located in the state of Amapá.

12

Energy Price

--� Increase in thermal generation

� Delays in construction of greenfield projects

� Recent adoption of risk aversion procedures in the electricity spot price (PLD) formation

� May pressure up electricity prices in the near future

Source: ONS/CCEESource: ONS

0

20

40

60

80

100

0

100

200

300

400

500

600

Jan

-07

Ap

r-07

Jul-

07

Oct

-07

Jan

-08

Ap

r-08

Jul-

08

Oct

-08

Jan

-09

Ap

r-09

Jul-

09

Oct

-09

Jan

-10

Ap

r-10

Jul-

10

Oct

-10

Jan

-11

Ap

r-11

Jul-

11

Oct

-11

Jan

-12

Ap

r-12

Jul-

12

Oct

-12

Jan

-13

Ap

r-13

Jul-

13

Oct

-13

%

R$/

MW

h

Termo (%) Hidro (%) PLD - SE (R$/MWh) Energy Storage - SE (%)

Financial Highlights

14

Financial Highlights - Consolidated

Key Indicators "CORPORATE LAW (IFRS)"

R$ MM 3Q13 3Q12 % Chg. 9M13 9M12 % Chg.

Adjusted Net Revenue 302.0 277.9 8.7% 885.3 818.2 8.2%

EBITDA (CVM 527) 263.4 241.7 9.0% 751.7 686.3 9.5%

Adjusted Ebitda Margin 87.2% 87.0% 0.2 p.p 84.9% 83.9% 1.0 p.p

EBITDA (Excluding GSF effectcs) - - - 765.3 - 11.5%

Ebitda Margin (Excluding GSF effects) - - - 86.4% - 2.5 p.p

Financial Results -41.2 -65.7 -37.2% -137.3 -171.3 -19.8%

Consolidated Net Income 175.0 132.3 32.3% 490.6 402.5 21.9%

Subsidiaries` Minority Interest 92.7 83.8 10.7% 268.7 235.3 14.2%

Net Income – Alupar 82.3 48.5 69.5% 221.9 167.2 32.7%

Earnings per UNIT (R$)* 0.39 0.23 69.5% 1.07 0.80 32.7%

Net Income – Alupar (Excluding GSF) - - - 227.1 - 35.8%

Net Debt** 2,196.9 2,578.4 -14.8% 2,196.9 2,578.4 -14.8%

Net Debt / Ebitda*** 2.1 2.7 2.2 2.8

Key Indicators "REGULATORY"

R$ MM 3Q13 3Q12 % Chg. 9M13 9M12 % Chg.

Net Revenue 282.3 264.4 6.8% 818.8 765.6 7.0%

EBITDA (CVM 527) 239.8 225.4 6.4% 674.9 625.7 7.9%

Ebitda Margin 84.9% 85.3% -0.4 p.p 82.4% 81.7% 0.7 p.p

EBITDA (Excluding GSF effectcs) - - - 688.5 - 10.0%

Ebitda Margin (Excluding GSF effects) - - - 84.1% - 2.4 p.p


Consolidated Net Income 136.8 102.5 33.5% 356.8 295.8 20.6%

Subsidiaries` Minority Interest 74.3 67.0 10.9% 198.8 182.0 9.2%

Net Income – Alupar 62.5 35.4 76.4% 158.0 113.8 38.8%

Earnings per UNIT (R$)* 0.30 0.17 76.4% 0.76 0.55 38.8%

Net Income – Alupar (Excluding GSF) - - - 163.2 - 43.4%

Net Debt** 2,196.9 2,578.4 -14.8% 2,196.9 2,578.4 -14.8%

Net Debt / Ebitda*** 2.3 2.9 2.4 3.1

*Net Income / Units Equivalents (208.300.600) **Including Securities under Non–Current Assets ***Annualized EBITDA

15

Consolidated Financial Highlights - IFRS

241.7263.4

87.0% 87.2%

3Q12 3Q13

EBITDA (R$ MM) and Margin (%)

48.5

82.3

3Q12 3Q13

Net Income (R$ MM)

277.9302.0

3Q12 3Q13

Adjusted Net Revenue (R$ MM)

686.3

751.7 765.313.6

9M12 9M13 GSF Adjust. Adjusted9M13


84.9%86.4%

83.9%

167.2

221.9227.1

5.2

9M12 9M13 GSFAdjust.

Adjusted9M13

Net Income (R$ MM)

818.2885.3

9M12 9M13


16

Consolidated Financial Highlights - Regulatory

225.4239.8

85.3% 84.9%

3Q12 3Q13


35.4

62.5

3Q12 3Q13

Net Income (R$ MM)

264.4

282.3

3Q12 3Q13

Net Revenue (R$ MM)

765.6818.8

9M12 9M13

Net Revenue (R$ MM)

625.7674.9 688.513.6



82.4%84.1%

81.7%

113.8

158.0163.25.2


Net Income (R$ MM)

17

Transmission Financial Highlights - Combined


R$ MM 3Q13 3Q12 % Chg. 9M13 9M12 % Chg.


Adjusted Operating Costs* -19.6 -18.8 4.4% -52.2 -47.7 9.5%

Depreciation / Amortization -1.5 -1.4 11.1% -4.3 -2.0 112.7%

Operating Expenses -9.0 -9.1 -1.4% -29.2 -27.5 6.4%

EBITDA (CVM 527) 254.2 226.9 12.0% 739.9 670.8 10.3%

Adjusted EBITDA Margin 89.9% 89.0% 0.9 p.p. 90.1% 89.9% 0.2 p.p.


Net Income 180.6 156.7 15.3% 547.5 477.9 14.6%

Net Debt** 1,277.6 1,358.5 -6.0% 1,277.6 1,358.5 -6.0%

Key Indicators "REGULATORY"

R$ MM 3Q13 3Q12 % Chg. 9M13 9M12 % Chg.


Adjusted Operating Costs -19.7 -18.5 6.3% -52.3 -47.2 10.7%

Depreciation / Amortization -28.5 -27.5 3.7% -84.2 -79.2 6.3%

Operating Expenses -8.9 -9.1 -1.2% -29.2 -27.4 6.4%

EBITDA (CVM 527) 227.7 209.1 8.9% 656.1 606.7 8.2%

Adjusted EBITDA Margin 88.8% 88.4% 0.4 p.p.. 89.0% 89.0% 0.0 p.p..


Net Income 138.3 123.3 12.2% 402.1 361.1 11.4%

Net Debt** 1,277.6 1,358.5 -6.0% 1,277.6 1,358.5 -6.0%

*Adjusted Operating Costs: excluding infrastructure costs

** Including Securities under Non-Current Assets

18

Transmission Financial Highlights - Combined

254.8 282.9

745.9821.4

3Q12 3Q13 9M12 9M13


236.7 256.3

681.3737.6

3Q12 3Q13 9M12 9M13

Net Revenue (R$ MM)

123.3 138.3

361.1402.1

3Q12 3Q13 9M12 9M13

Net Income (R$ MM)

Corporate Law (IFRS)

Regulatory

156.7 180.6

477.9

547.5

3Q12 3Q13 9M12 9M13

Net Income (R$ MM)

226.9 254.2

670.8739.9

89.0% 89.9% 89.9% 90.1%

3Q12 3Q13 9M12 9M13


209.1 227.7

606.7656.1

88.4% 88.8% 89.0% 89.0%

3Q12 3Q13 9M12 9M13


19

Generation Financial Highlights - Combined


R$ million 3Q13 3Q12 % Chg. 9M13 9M12 % Chg.

Net Revenue 43.8 43.1 1.7% 134.8 121.8 10.7%

Operating Costs -10.6 -2.0 424.9% -25.4 -6.6 287.0%

Depreciation & Amortization -8.3 -8.5 -1.9% -25.1 -24.0 4.5%

Energy Purchases -1.2 -0.8 50.1% -24.7 -22.2 11.2%

Operating Expenses -2.4 -7.3 -66.6% -10.0 -25.7 -61.1%

EBITDA (CVM 527) 29.5 32.9 -10.2% 74.6 67.3 10.9%

EBITDA Margin 67.4% 76.4% -9.0 p.p. 55.4% 55.2% 0.2 p.p.

EBITDA (Excluding GSF) - - - 88.2 - 31.1%

EBITDA Margin (Excluding GSF) - - - 65.4% - 10.2 p.p.

EBITDA Margin (Excluding Intercompany) 70.3% -6.1 p.p. 56.7% 1.5 p.p.

Financial Result -11.3 -12.9 -12.6% -34.4 -41.1 -16.3%

Net Income / Loss 8.9 10.8 -17.7% 12.7 0.4 -

Net Income (Excluding GSF) - - - 24.7 - -

Net Debt* 1,141.3 1,009.7 13.0% 1,141.3 1,009.7 13.0%

* Including Securities under Non-Current Assets

20

67.374.6

88.2

13.6



55.4%

64.5%

Generation Financial Highlights - Combined

43.1 43.8

3Q12 3Q13

Net Revenue (R$ MM)

121.8

134.8

9M12 9M13

Net Revenue (R$ MM)

32.929.5

76.4% 67.4%

3Q12 3Q13


0.4

12.7

24.7

12.0


Net Income (R$ MM)

55.2%

10.8

8.9

3Q12 3Q13

Net Income (R$ MM)

21

Indebtedness - Consolidated

3,195.82,196.9

999.0

Gross Debt Cash and

Cash Equivalents

Net Debt

Total Debt Sep/13

32.9%

36.7%

14.4%

0.2%

15.8% CDI

TJLP

Fixed

Foreign Currency

IPCA

Gross Debt by Index Sep/13 (%)

1,328.9

301.0

4.65.6

1,555.8

BNDES (TJLP / IGP-M)

Other Development Banks

Other Local Currency

Foreign Currency

Debentures

Gross Debt Composition Sep/13

18%

82%

Debt Profile (%)

Short Term Long Term

22

Indebtedness - Consolidated

Moody’sMoody’sMoody’sMoody’s InvestorsInvestorsInvestorsInvestors ServiceServiceServiceService

� Corporate (national scale) AA+ � Corporate (national scale) Aa2.br� Corporate (globa scalel) Ba1

255.475.4

271.7

318.0 278.0 251.1135.8

930.6

743.6

126.9

89.3

83.8 24.1124.1

68.9

257.7

Cash andCash

Equivalents

2013 2014 2015 2016 2017 2018 after 2018

Debt Amortization Schedule (R$ million)

Subsidiaries Parent Company Bridges Loans

160.4

IR Contacts

Marcelo Costa

IRO

Luiz Coimbra

IR Analyst

Tel.: (011) 2184-9600

[email protected]

November 13th, 2013

3Q13 Results Presentation

Business

Transcript of 3Q13 Results Presentation