Escolar Documentos
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Cultura Documentos
March 2012
Light Holdings
100% Lightcom
Comercializadora de Energia S.A.
100%
Instituto Light
33%
EBL Cia de Eficincia Energtica S.A
Distribution
Generation
Institutional
System
Electric Vehicles
Rankings
Among the largest players in Brazil
Integrated Net Revenues 2010 R$ Billion
12,9 12,1 43.737 8,9 6,9 6.2 5,1 43.345 30.562 22.384 22.358
2.660
2.307 2.150
1.790
866
Souce: Companies reports Note: 1 Captive market + free clients 2 It doesnt consider the consumption of CSN and CSA
Shareholders Structure
BTG PACTUAL
14.29% 2.75% 28.57% 5.49% 28.57% VOTORANTIM 5.49% 28.57% 5.49% 100% 25.64%* 75% 19.23% 25% 6.41% FIP REDENTOR CEMIG
SANTANDER
BANCO DO BRASIL
PARATI 25%
MINORITY SHAREHOLDERS
3.20%
0.42%
FOREIGN 66.94%
NATIONAL 33.06%
CEMIG 26.06%
LEPSA
BNDESPAR 15.02%
MARKET 32.85%
Free Float 47.9% Light S.A. (Holding) Percentage in blue: indirect stake in Light
*12.61% (RME) + 13.03%(LEPSA)
Corporate Governance
Shareholders
11 Board members: 2 independent and 1 employees nominated 2 years term Fiscal Council Manual of Corporate Governance
Controller group
Minority
General Assembly Fiscal Council Interface Board of Directors Governance and Sustainability Committee Human Resources Committee
Auditors Committee
Management Committee
Finances Committee
Management
LGSXY
ADR-OTC
5
Distribution Business
5th
LIGHT
4.0 million clients (serving 10 million people) Energy sales (2011) 22,932 GWh 70% of the consumption of Rio de Janeiro state (Brazils 2nd GDP)
Energy Consumption
Distribution
ELECTRICITY CONSUMPTION TOTAL MARKET (GWh) - Year
20,928
27,5 25,5 23,5 21,5 19,5 17,5 15,5 2008
21,491
22,384
22,932
OTHERS 15.3%
INDUSTRIAL 8.1%
21.7 C 23.8 C
22.0 C 25.0 C
22.1 C 24.5 C
21.7 C 23.9 C
Srie1
COMMERCIAL 27.2%
RESIDENTIAL 35.5%
2008
2009
2010
2010
2011
2011
Industrial
Residencial
Comercial
outros
Livre
2009
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 core network.
Total Market
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET - YEAR
+2.5%
22,384
22,932
2.924
+2.1%
3.056
8,243
8.418
+4.3%
6,679
0.0%
6,967 657
+2.5%
19,459
19,877
523
3,945
2,228
1,717
2,213
1,731
2010 2010
2011 2011
2010 2010
2011 2011
2010 2010
2011 2011
2010 2010
2011 2011
2011 2011
RESIDENTIAL
INDUSTRIAL
COMMERCIAL
OTHERS
CAPTIVE
FREE
A
Ca rmo Sapuc aia
R
Chia dor
-AMBEV (ND)
N I M
Passa Vinte
A
Rio Preto Santa R ita de Jacutinga
G
Com.Levy Gasparian
Sumidouro
Duas Barras
Terespolis
Vassouras Re send e
Porto
Re al
Qua tis
Japeri
Be lford Roxo Nova S.J . Igua u Me riti Nilpolis
Mag
Que imados
-Petrobras (15MW) -CSN (100MW) -Gerdau (30MW) -Usiminas (20MW) -LLX (40MW) -Base Naval(25MW) -Hotel Comfort (3MW)
Ita gua i
Rio Janeiro
Niteri
Ma nga ratiba
B a a de S e p e t i b a
R es ting a de Mar amba ia
ILHA GRANDE
-Bio Manguinhos (ND) -Hermes (3MW) -Votorantin (ND) -Ongoing (ND) -Bunge (ND) -AMBEV (2MW) -GE (6MW) -Shop. Metropolitano (10MW)
-Maracan (ND) -Port Maravilha (ND) -Morar Carioca (ND) - International Airport (5MW) - Inhauma Shipyard (ND) -Atento (2MW) -Expansion Nova Amrica (4MW) -Expansion Norteshopping (3MW)
10
Collection
97.9% 97.4%
94.1% 94.3%
100.8% 101.0%
107.1%
102.6%
3.2%
3.2%
3.1%
Total Total
Retail Varejo
2010 2010
2009 2009
2010 2010
2011 2011
2011
11
Loss prevention
LOSS (12 MONTHS)
41.8% 41.6% 41.3% 40.7% 40.5% 178.2 35.1% 7,493 7,543 7,619 7,627 7,591
-12.0%
RECOVERY GWh
169.3
5,278
5,312
5,326
5,299
5,256
2,215 Dec/10
2,231 Mar/11
2,293 Jun/11
2,328 Sep/11
2,335 Dec/11
INCORPORATION GWh
+107.8%
dez /10
mar/11
jun/11
set/11
dez /11
67.6
140.4
12
Low voltage
3m
9m
75 412
75 412
Mechanical Meter
Display
13
Meters Installed
(as of Dec, 2011)
208,000 160,000 38,000
Monitoring,
reading, cutting and reconnection of customers telemetry MCC (Measuring Center Centralized)
TOTAL INDIVIDUAL (ITRON) CENTRALIZED
Prioritization Technology
in areas of high losses and aggressiveness to the network hindering interference in networks inappropriate
(LANDIS GYR
CAM and ELSTER)
14
15
16
REAL CONSUMPTION
300 kWh
ENERGY SAVED 100 kWh LOST ENERGY 200 kWh BILLED CONSUMPTION 100 kWh BILLED CONSUMPTION INCREASE 100 kWh
17
18
Community Clients Santa Marta Losses Delinquency Chapu Mangueira Clients Losses Delinquency Cidade de Deus
Clients
Losses Delinquency Clients
2.800
61% 68% 389 73% 54% 470 58% 52% 0 100% 100%
3.826
7% 9% 1.017 7% 13% 807 9% 14% 423 8% 10% Formiga Borel Cabritos
Clients
Losses Delinquency Clients Losses Delinquency Clients Losses Delinquency
199
50% 70% 2.241 55% 48% 199 61% 48%
1.673
22% 3.135 1.673 -
Babilnia
Casabranca
Batan
Losses Delinquency
19
Generation Business
20
Installed Capacity
100%
100%
100%
27
27 146
27
276
510 234 130
2008-2012 2013 Contracted Energy New Contracts
234
2014
Uncontracted Energy
Hedge
22
+ 75.4%
280 277 74 1,519
866
13
Current
SHP
Lajes
Itaocara
Capacity
23
Renova Contracts
Contract
SHPP
20
IGPM
41.8
61.3
24.2
189
BNB Contracted
185.17
LER 2009
14
20
IPCA
Jul - 2012
293.6
50.7
148.9 (*)
1,170
761.7
BNB Contracted
145.81
LER 2010
20
IPCA
Sep - 2013
162
53.6
86.8 (*)
599
14.1
BNDES application
121.25
Y-3 2011
20
IPCA
Mar - 2014
212.8
50.8
108.1 (*)
702
BNDES application
98.53
PPA Light 1
10 (E)
20
IPCA
2015
200
50.0 (E)
100 (E)
660
PPA Light 2
10 (E)
20
IPCA
2016
200
50.0 (E)
100 (E)
660
Tariff (R$/MW)
-
Term (years)
Index
Loan
Sites
24
Installed capacity - 11,233 MW Main engine room 11,000 MW Auxiliary engine room 233 MW
Assured Energy (Average MW) 4,571 MW Reservoir 516 Km Flooded area/generation ratio of 0.05 Km/MW 5,000 families affected Estimated project cost (April 2010) R$ 25.8 billion
Other Informations:
49.0% CS 100.0% PS 74.5% of total stock 51.0% CS 0.0% PS 25.5% of total stock
Amaznia Energia 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.
Terms for sale of electricity generated already set. Regulated Market: 70%; Free Market: 20%; Self-producers: 10%.
25
Guanhes
TOTAL CAPEX R$ Million
PCH Installed Capacity (MW) Assured Energy (MW average) ANEEL Authorization Operation - Start up Authorization Term Dores de Guanhes 14 8 11/22/2002 Dec/13 Senhora do Prto 12 6.77 10/08/2002 Dec/13
269.2
Jacar 9 5.15 Fortuna II 9 5.11 Total 44 25.03
Equity
60.2 57.8
Debt
151.2
26
Results
27
Net Revenue
NET REVENUE BY SEGMENT (2011)* NET REVENUE (R$ MN)
+6.7%
Generation 5.4%
2011
5,38%
Commercialization 3.0%
3,05%
Distribution 91.6%**
6,508.6 552.8
+4.7%
3.3%
6,944.8 794.6
5,955.8
1,537.3 4Q10
4T10
2011
4Q11
4T11
2010
2010
2011
2011
Industrial 8.4%
(Free + Concessionaires)
28
1,136.0
-15.6%
1,252.7
(23.4%)
2011
330.1
278.7
4T10
4Q10
4Q11 149.6 56.8 35.3 21.5 72.3 278.7
4T11 4Q11
2010 2010
2011 2011
R$ MN PMSO Provisions
Depreciation Total
29
EBITDA
-21.5%
1,584.6 1,243.6
-3.3%
2011
Generation 19,5%
339.1
328.1
Comercializao
4T10 4Q10
4T11 4Q11
2010 2010
2011 2011
30
EBITDA
(17)
(83)
Provisions Provises
31
Net Income
Lucro Lquido - Semestre NET R$ Milhes INCOME
R$ MILLION
575
243
311
(28)
(341) (138)
2010 2010
EBITDA EBITDA
Impostos Taxes
Outros Others
2011 2011
Result
32
Dividends
DIVIDENDS AND DIVIDEND YIELD
8.2% 4.2%
9.9%
8.1% 1.7%
8.1%
6.1% 3.4% 3.3% 100% 100% 76.3% 205 87 182 81.0% 100%
351
408
203
50%
118
1H08 1S08 2H08 2S08 1H09 1S09 2H09 2S09 1H10 1S10 2H10 2S10 1H11 1S11 2H11 2S11 1H12 1S12
2007 2007 2007 2008 2008
2008
2009 2009*
2009
2010 2010
2010
2011 2011
9M11
Dividend Yield*
Payout
Dividend Policy
33
Indebtedness leverage
Net Debt (R$ MM) and Net Debt / EBITDA
Rating (brA - )
Rating (brA + )
Rating (Aa2.br)
3,383
DL/EBITDA
1,462 1.3 1,580 1.1 1,637 1.2
1,947
2.7
1.2
2007
2007 20072
2008
2008 2008
2009
2009 2009
DL/EBITDA
2010
2010 2010
2011
2011
2011
Net Debt
Net debt = total debt (excludes pension fund liabilities) cash EBITDA Pro Forma, not considering costs of profit sharing costs in 2007.
34
Indebtedness
NET DEBT EVOLUTION
3,383.2
541
581
680
598
Dec/10
jan/10
Dec/11
jan/11
2012
* Only Principal
2013
2014
2015
2016
COST OF DEBT
13.97% 9.84% 7.62% 11.08% 11.01% CDI/Selic 69.0%
2011
TJLP 30.3%
US$/Euro 0.7%*
5.30%
4.88%
4.51%
2007
2008 2007
2007 2008
2009 2008 2009
Real Cost
2008 2009
2009 2010 CustoCusto Real Nominal
2010
Nominal Cost
2009 set/10
2011 set/10 2011
set/10
* Considering Hedge
2008
Investments
CAPEX (R$MN) CAPEX BREAKDOWN (R$MM) 2011
Generation Others Maintenance New R$ 63.9 Generation R$ 29.0 Projects
+32.5%
2007 2007
2008 2008
2009 2009
2010 2010
2011 2011
36
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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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.
37
Annex
38
Renova
Highlights 1st listed renewables company on BM&FBovespa 42 MW operating trough 3 SHPs (2008) 1.096 MW wind energy already contracted 1.461 MW in SHPs projects 2.042 MW in Wind projects Former prospections assured one of the best spots for wind projects Top of the class suppliers and strong financial sponsors Origination and organization of project finance
42MW of SHPs in operation
Wind projects Inventaries Basic projects
Energy Auctions
The largest seller in 2009 reserve energy auction The largest seller in 2010 reserve energy auction The second largest seller in 2011 reserve energy auction
Geographic Distribution
1.096 MW of wind energy in implementation
39
Tariff Readjustment
Starting November , 7, consumers will notice, on average, an increase of 7.90% on tariffs
Total Readjustmen t
+6.57%
+
- 0.64%
-1.33%
Captive 7.79% HV 4.64% MV 7.77% LV 7.98% Free 8.06% HV 7.14% MV 9.65% LV 11.07% Gen. 7.27% Distr. 11.92%
40
Others Revenues
Accounting: Special Obligation account; Due date: It will be deducted of the RAB (Regulatory Asset Base) from the 4th Tariff Review on, in the case of Light in 2018 Main objective: These revenues would become investment in the concession area with no regulatory remuneration, instead of reducing the companys required revenue.
WACC
Component Business and financial risk premium Country risk Nominal cost of equity Real cost of equity Cost of Debt Credit risk Nominal cost of debt Real cost of debt Weighted Average Cost (with 34% of taxes) Nominal WACC after tax Real WACC after tax Capital Structure Equity Debt
Formula
b.(rm -rf) rb rp
2nd Tariff Revision 4.70% 4.91% 16.71% 13.75% 2.96% 14.97% 12.06% 12.81% 9.95%
rc rd
rwacc rwacc
10.13% 7.50%
45.00% 55.00%
42.84% 57.16%
41
Contacts
Gustavo Werneck
IR Manager + 55 21 2211 2560 gustavo.souza@light.com.br
www.light.com.br/ri
42