Webcast 4 q12 eng

OPERATING AND

FINANCIAL RESULTS

4Q12

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Agenda

► Highlights

► Operating Results

► Introduction

► Financial Results

► Corporate Events

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► Highlights



► Introduction

Agenda


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Introduction

Presentation of Operating and Financial Information

► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated financial information represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests before Net Income, resulting in participation of 65.11% ii) 100% of Celpa’s results, excluding 38.63% related to minority interests before Net Income, resulting in participation of 61.37%; iii) 25% of Geramar’s results and iv) 100% of Equatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49% of minority interest before Net Income.

► The operating information presented herein consolidates 100% of CEMAR’s results, 100% of Celpa’sresults and 25% of Geramar’s results.

► The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies.

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► Highlights


► Introduction


Agenda

►Corporate Events

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Operating Highlights

► CEMAR’s total billed energy volume reached 1,266 GWh in 4Q12, 9.2% higher than in 4Q11. The totalvolume distributed by Celpa (captive and free markets) totaled 1,732 GWh in 4Q12, representing growthof 2.6% YoY.

► CEMAR’s last-12-month energy losses totaled 20.7% of required energy in 4Q12, 0.3 p.p. less than the4Q11 ratio. Celpa’s last-12-month energy losses represents 30.5% of required energy in 4Q12.

► In 4Q12, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 21.7 hours, anincrease of 1.2%, and 11.0 times, a decrease of 5.4%, compared to those observed at the end of 4Q11.In Celpa, these same indexes closed the year at 101.6 hours and 50.9 times, respectively.

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► Celpa’s results are consolidated as from November 1, 2012, the date in which the company’s acquisition wasconcluded.

► Net operating revenues (NOR) in 4Q12 reached R$1,220.3 million in, more than twice 4Q11’s NOR, whichreflects the early consolidation of Celpa.

► In 4Q12, EBITDA totaled R$167.6 million, 18.1% increase compared to the adjusted amount for 4Q11.

► The net result for the quarter was a loss of R$8.8 million, due to the beginning of Celpa’s consolidation.

► In 4Q12, Equatorial's consolidated investments totaled R$258.1 million, 24.1% lower than those made in4Q11. If we consider only CEMAR’s own investments, the growth was 6.3% in the quarter.

► The management's proposal, to be submitted to AEGM, is the distribution of R$33.7 million in dividends,equivalent to R$0.17 per share

► In December 2012, Equatorial concluded its follow on deal, in which it raised just over R$1.1 billion of netproceeds through the issuance of new shares priced at R$16.00 each.

► In January 2013, the Company’s Board of Directors approved the new capital increase deal through thecapitalization of R$234.8 million of loans held by BNDESPAR against the Company. Since then, Equatorial’scapital became represented by 198,447,352 common shares.

Financial Highlights

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► Highlights


Agenda

► Introduction



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► CEMAR: 4Q12 energy sales moved up by 9.2%, reaching 1,266 GWh.

► Celpa: Captive market growth of 0.6% in energy sales in 4Q12, reaching 1,647 GWh.

Electricity Sales Volume

Electricity Consumption per Segment (GWh)

Energy Balance (GWh)ENERGY BALANCE (MWh) 4Q11 3Q12 4Q12 Chg. 2011 2012 Chg.

CEMAR

Required Energy 1,491,056 1,571,246 1,619,776 8.6% 5,539,391 6,059,311 9.4%

Sold Energy (*) 1,161,335 1,214,772 1,268,309 9.2% 4,378,551 4,804,495 9.7%

Losses 329,722 356,474 351,466 6.6% 1,160,841 1,254,816 8.1%

Celpa

Required Energy 2,541,768 2,658,177 2,759,975 8.6% 9,527,941 10,324,099 8.4%

Sold Energy (*) 1,645,907 1,622,956 1,653,922 0.5% 6,321,764 6,412,577 1.4%

Losses 895,861 1,035,221 1,106,053 23.5% 3,206,177 3,911,522 22.0%

(*) Considers sale to the segments, own consumption and sales to CEPISA

CONSUMPTION SEGMENTS * (MWh) 4Q11 3Q12 4Q12 Chg. 2011 2012 Chg.

CEMAR

Residential 549,955 563,400 602,968 9.6% 2,041,253 2,257,539 10.6%

Industrial 110,457 128,518 124,489 12.7% 442,397 479,727 8.4%

Commercial 234,202 240,682 253,985 8.4% 872,763 960,422 10.0%

Others 264,636 279,996 284,782 7.6% 1,014,469 1,098,354 8.3%

TOTAL 1,159,250 1,212,595 1,266,225 9.2% 4,370,881 4,796,041 9.7%

Celpa

Residential 647,423 645,850 658,898 1.8% 2,460,203 2,526,551 2.7%

Industrial 324,154 299,897 296,871 -8.4% 1,320,616 1,226,926 -7.1%

Commercial 374,555 379,460 389,469 4.0% 1,396,763 1,479,814 5.9%

Others 290,698 290,699 301,819 3.8% 1,110,160 1,150,232 3.6%

TOTAL (Captive Market) 1,636,831 1,615,905 1,647,057 0.6% 6,287,742 6,382,977 1.5%

Free Consumers 52,128 86,436 85,117 63.3% 196,287 293,119 49.3%

TOTAL (Captive Market + Free) 1,688,959 1,702,342 1,732,174 2.6% 6,484,029 6,676,096 3.0%

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Distribution – Energy Losses in CEMAR

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Distribution – Energy Losses in Celpa

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DEC (hours) FEC (times)

Distribution – DEC and FEC (Last 12 months)

► CEMAR: In 4Q12, the DEC index increased 1.2% compared to 4Q11 while the FEC index decreased 5.4% compared to the same quarter last year.

► Celpa: In 4Q12, the DEC index increased 1.9% compared to 4Q11 while the FEC index decreased 4.1% compared to the same quarter last year.

21.721.4

4Q11 4Q12

1.2%

CEMAR

Celpa

11.6

11.0

4Q11 4Q12

-5.4%

55.5

50.9

4Q11 4Q12

-4.1%99.7 101.6

4Q11 4Q12

1.9%

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► Highlights


Agenda

► Introduction



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Quarterly Results

Consolidated EBITDA

167.6141.9

4Q11 4Q12

18.1%

Consolidated EBITDA grew by 18.1% on the 4Q12 when compared to the 4Q11 figures.

CEMAR’s quarterly EBITDA grew by 10.5%, amounting to R$147.7 million. Celpa’s EBITDA contribution in the 4Q12 totaled R$20.9 million.

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Quarterly Results

Net Income

(8.8)

33.9

4Q11 4Q12

-126.1%

This quarter’s result was a loss of R$8.8 million due to the consolidation of Celpa.

CEMAR’s adjusted net income, excluding the non-recurring results of R$68.9 million and minorities’ stake, amounted to R$52.7 million in the quarter, a 3.9% growth.

Celpa’s result in november and december, already excluding minorities and which were conolidated underEquatorial’s result, represented a R$98.3 million loss.

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Debt: Schedule of Gross Debt Maturities

Consolidated Gross Debt(100% CEMAR + 100% Celpa + 25% Geramar)

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100% CEMAR + 100% Celpa + 25% Geramar

Net Debt - Consolidated

Net Debt (R$MM) and Net Debt/ EBITDA (Last 12 months)

Net Debt Reconciliation (R$MM)

1,758.2

1,002.4 1,051.31,108.31,082.6

2.02.0

1.9

3.1

2.0

4Q11 1Q12 2Q12 3Q12 4Q12

1,631.4

1,758.2

3,627.9

51,1

Gross Debt Net

Regulatory

Asset

Cash Net Debt

Despite the consolidation of 100% of Celpa’s gross debt, its EBITDA contribution to Equatorial’sconsolidated figure represents only the results from November and December.

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65.11% CEMAR + 61.37% Celpa + 25% Geramar

Net Debt – Pro-rata

Net Debt (R$MM) and Net Debt/ EBITDA (Last 12 months)

Net Debt Reconciliation (R$MM)

890.9

681.7 714.4751.0735.0

2.12.0

2.4

2.0 2.0

4Q11 1Q12 2Q12 3Q12 4Q12

890.9

2,334.31,296.1

33,3

Gross Debt Net

Regulatory

Asset

Cash Net Debt

Despite the consolidation of 61.37% of Celpa’s gross debt, its proportional EBITDA contribution toEquatorial’s consolidated figure represents only the results from November and December.

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► CEMAR: In 4Q12, total capex reached R$195.5 million, of which R$150.2 million are own capex and R$45.4 million regarding theLight for All Program (PLPT).

► Celpa: In 4Q12, total capex reached R$62.5 million, of which R$57.5 million are own capex and R$5.0 million regarding the Light for All Program (PLPT).

Capex - Equatorial

INVESTMENTS (R$MM) 4Q12 3Q12 4Q12 Chg. 2011 2012 Chg.

CEMAR

Own (*) 141,3 116,2 150,2 6,3% 322,3 441,2 36,9%

Light For All Program 50,1 50,5 45,4 -9,5% 174,6 177,5 1,6%

Total 191,4 166,7 195,5 2,1% 496,9 618,7 24,5%

Celpa

Own (*) 100,5 124,5 57,5 -42,8% 487,1 432,6 -11,2%

Light For All Program 47,9 8,6 5,0 -89,6% 165,3 45,5 -72,5%

Total 148,4 133,1 62,5 -57,9% 652,4 478,1 -26,7%

Geramar

Generation 0,1 0,0 0,1 8,7% 0,1 0,3 335,6%

TOTAL 339,9 299,8 258,1 -24,1% 1.149,4 1.097,1 -4,6%

(*) Including indirect Light For All Program investments

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► Highlights


Agenda

► Introduction



Corporate Events

► In December 2012, Equatorial completed its capital increase operation (follow on) in which raised just overR$1.1 billion of net proceeds through the issuance of new shares priced at R$16.00 each.

► In December 2012, the Company published a Material Fact informing the signing of Investment, Purchaseand Sale of Shares’ Commitment targeting the acquisition of Grupo Rede Energia, together with CPFLEnergia.

► In January 2013, the Company’s Board of Directors approved the new capital increase operation through thecapitalization of R$234.8 million of loans held by BNDESPAR against the Company. Since then, Equatorial’scapital came to be represented by 198,447,352 shares.

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Eduardo HaiamaCFO and IRO

Thomas NewlandsInvestor Relations

Telephone 1: +0 55 (21) 3206-6635Telephone 2: +0 55 (21) 3217-6607

Email: [email protected]

Website: http://www.equatorialenergia.com.br/ir

Contacts

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• This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on theexpectations of Company’s management and on available information. These prospects include statements concerning the Company’scurrent intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir andin the IPE system of the Brazilian Securities and Exchange Commission (CVM).

• Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market shareand competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factorsand values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completelyrely on the information above.

• The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identifyestimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements.

• This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And,this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind.

Disclaimer

Webcast 4 q12 eng

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