4q14 results presentation

4Q14 Results

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1. Highlights

2. Generation Exposure

3. Financial Information

Agenda

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Highlights

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Material Fact, March 02, 2015

Concluded the acquisition of the equity interest of the Aracati Complex

ARACATI COMPLEX

Energia dos Ventos I S.A

Energia dos Ventos II S.A

Energia dos Ventos III S.A

Energia dos Ventos IV S.A

Energia dos Ventos X S.A

Before

T 50.99%

After

ARACATI COMPLEX

Energia dos Ventos I S.A

Energia dos Ventos II S.A

Energia dos Ventos III S.A

Energia dos Ventos IV S.A

Energia dos Ventos X S.A

T 99.99%

Acquisition of 33,839,400 common shares

Value of the transaction: R$ 47.5 million

Aracati

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Notice to the Market, December 17, 2014

Startup in advance of the second generation unit from Ferreira Gomes HPP

ALUPAR INVESTIMENTO S.A. (“Company”), a publicly held company registered with

the CVM under number 2149-0, informs its shareholders and the market in general

that today its subsidiary, Ferreira Gomes Energia S.A. (“Ferreira Gomes”), obtained

authorization to begin the commercial operation of the second generation unit of

Ferreira Gomes HPP (“GU2”) with a capacity of 84 MW (eighty-four megawatts),

amounting along with the first generation unit 119.8 average MW (one hundred

nineteen point eight average megawatts) of physical guarantee, pursuant to ANEEL

Order number 4,815 published in the “Diário Oficial” today, anticipating the startup

in 73 days in relation to the expected date in the Concession Agreement, scheduled

for February 28, 2015.

GU2 was under test since December 3, 2014 and has provided power to the National

Interconnected System (SIN) since December 4, 2014, being remunerated by the

Difference Settlement Price – PLD (North Submarket) on the energy actually generated

in the period.

6

Material Fact, December 11, 2014

Sale of shares from Sinop

ALUPAR INVESTIMENTO S.A. (“Company” or “Alupar”), a publicly held company

registered with the Brazilian Securities and Exchange Commission (“CVM”) under no.

2149-0, pursuant to CVM Instruction 358, of January 3, 2002, as amended, and in

compliance with the Material Fact disclosed on August 29, 2013 and the Notices to the

Market disclosed on September 12, 2014 and November 17,2014, hereby informs its

shareholders and the market in general that, on this date, it has completed the

procedures necessary for its withdrawal from the SINOP HPP project, through the

sale of all the shares held in Companhia Energética SINOP S.A. to Usina Termelétrica

Norte Fluminense S.A..

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Notice to the Market, November 28, 2014

Approval by CADE of the Act of Concentration number 08700.009463/2014-65

ALUPAR INVESTIMENTO S.A. (“Company”), a publicly-held company registered with CVM

under number 2149-0, hereby announces to its shareholders and the market in general

that it was published, on this date, in the Federal Official Gazette, the General

Superintendent Order No 1,541, in which the Administrative Council for Economic

Defense (“CADE”), Brazil’s antitrust authority, has approved, without any restrictions, the

Act of Concentration number 08700.009463/2014-65 between the requesting

companies Alupar Investimento S.A. and Furnas Centrais Elétricas S.A., for the

purchase and sale of the interests held by the requesting companies in the complexes

“Aracati” (composed of Energia dos Ventos I S.A., Energia dos Ventos II S.A., Energia dos

Ventos III S.A., Energia dos Ventos IV S.A. and Energia dos Ventos X) and “Fortim”

(composed of Energia dos Ventos V S.A., Energia dos Ventos VI S.A., Energia dos Ventos

VII S.A., Energia dos Ventos VIII S.A. and Energia dos Ventos IX).

Sale of the interest in Fortim Complex to Furnas Centrais Elétricas SA, was formalized by a contract of celebration to purchase and sale the shares on the date of December 23, 2014, which is subject to a condition precedent effectiveness of obtaining prior approval by the Department of Coordination and Control of State Companies - DEST. If DEST does not respond favorably to the acquisition of shares, Furnas will held Public Call to acquire, indirectly, these shares within 60 days.

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Generation Exposure

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Source: CCEE

Generation Exposure

19.03 28.88 67.30

96.99 135.29

38.74 69.99

29.46

166.64

262.54

688.89

378.22

822.83 822.83 822.83 806.97

412.65

592.54

709.53 728.95

776.88 804.54

601.21

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

(R$ MM) Total Energy

Purchase

Accounted Numbers

1Q14 2Q14 3Q14 4Q14

GSF R$ 25.7 R$ 1.4 R$ 6.4 R$ 9.6 R$ 8.3

Seasonalization R$ 17.1 - R$ 1.7 R$ 8.1 R$ 7.3

7 MWavg R$ 23.4 - R$ 3.3 R$ 10.0 R$ 10.1

SWAP R$ 1.5 R$ 1.5 - - -

Pis and Cofins Credit R$ 2.0 R$ 0.1 - R$ 0,9 R$ 1,0

Total Energy Purchase R$ 65.7 R$ 2.8 R$ 11.3 R$ 26.9 R$ 24.6

Average PLD

R$ 688.89/MWh in 2014

R$ 726.68/MWh in 4Q14

GSF

90.63% in 2014

88.53% in 4Q14

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Financial Highlights

11

Financial Highlights – Consolidated

Key Indicators "CORPORATE LAW (IFRS)" R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%

Adjusted Net Revenue 1,343.5 1,206.4 11.4% 392.4 321.1 22.2%

EBITDA (CVM 527) 1,088.9 1,001.1 8.8% 301.6 249.3 20.9%

Adjusted EBITDA Margin 81.0% 83.0% (2.0 p.p) 76.9% 77.7% (0.8 p.p)

Financial Results (242.6) (182.2) 33.1% (74.5) (44.9) 65.7%

Consolidated Net Income 751.7 655.0 14.8% 193.9 164.4 18.0%

Subsidiaries' Minority Interest 388.9 365.1 6.5% 79.3 96.4 (17.8%)

Net Income Alupar 362.8 289.9 25.2% 114.6 68.0 68.6%

Earnings per UNIT (R$)* 1.74 1.39 25.2% 0.55 0.33 68.6%

Net Debt** 3,350.9 2,405.9 39.3% 3,350.9 2,405.9 39.3%

Net Debt / Ebitda*** 3.1 2.4 2.8 2.4

Key Indicators "REGULATORY" R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%

Net Revenue 1,297.8 1,111.1 16.8% 388.1 292.3 32.7%

EBITDA (CVM 527) 1,055.6 909.1 16.1% 303.8 234.2 29.7%

Adjusted EBITDA Margin 81.3% 81.8% (0.5 p.p) 78.3% 80.1% (1.8 p.p)


Consolidated Net Income 592.2 493.3 20.1% 173.8 136.5 27.3%

Subsidiaries' Minority Interest 304.5 280.9 8.4% 59.8 82.2 (27.3%)

Net Income Alupar 287.7 212.4 35.5% 114.0 54.3 109.8%

Earnings per UNIT (R$)* 1.38 1.02 35.5% 0.55 0.26 109.8%

Net Debt** 3,350.9 2,405.9 39.3% 3,350.9 2,405.9 39.3%

Net Debt / Ebitda*** 3.2 2.6 2.8 2.6

* Net Income / Units Equivalents (208,300,600) ** Including Securities under Non–Current Assets ***Annualized EBITDA

12

Financial Highlights Consolidated – Corporate Law

249.3

301.6

77.7% 76.9%

4Q13 4Q14

EBITDA (R$ MM) and Margin(1) (%)

68.0

114.6

4Q13 4Q14

Net Income (R$ MM)

321.1

392.4

4Q13 4Q14

Adjusted Net Revenue (R$ MM)

1,206.4

1,343.5

2013 2014


289.9

362.8

2013 2014

Net Income (R$ MM)

1,001.1 1,088.9

83.0% 81.0%

2013 2014


(1) Adjusted Ebitda Margin

13

Financial Highlights Consolidated – Corporate Law

14

Financial Highlights Consolidated – Regulatory

234.2

303.8

80.1% 78.3%

4Q13 4Q14

EBITDA (R$ MM) and Margin (%)

54.3

114.0

4Q13 4Q14

Net Income (R$ MM)

292.3

388.1

4Q13 4Q14

Net Revenue (R$ MM)

1,111.1

1,297.8

2013 2014

Net Revenue (R$ MM)

909.1

1,055.6

81.8% 81.3%

2013 2014


212.4

287.7

2013 2014

Net Income (R$ MM)

15

Financial Highlights Consolidated – Regulatory

16

Transmission Financial Highlights - Combined

. Key Indicators "CORPORATE LAW (IFRS)"

R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%

Adjusted Net Revenue 1,147.9 1,111.5 3.3% 291.4 290.1 0.5%

Adjusted Operating Costs* (87.0) (91.3) (4.7%) (23.4) (35.8) (34.7%)

Depreciation / Amortization (7.1) (5.8) 22.4% (1.9) (1.6) 21.1%

Operating Expenses (42.0) (39.2) 7.3% (14.5) (13.3) 8.8%

EBITDA (CVM 527) 1,018.9 981.0 3.9% 253.6 241.0 5.2%

Adjusted Ebitda Margin 88.8% 88.3% 0.5 p.p 87.0% 83.1% 3.9 p.p


Net Income 781.4 726.2 7.6% 168.6 178.5 (5.5%)

Net Debt** 2,187.4 1,439.9 51.9% 2,187.4 1,439.9 51.9%

Net Debt / EBITDA*** 2.1 1.5 2.2 1.5

Key Indicators "REGULATORY"

R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%

Net Revenue 1,062.6 995.3 6.8% 273.2 257.7 6.0%

Operating Costs (83.5) (75.6) 10.5% (22.0) (20.0) 10.0%



EBITDA (CVM 527) 937.1 880.6 6.4% 236.8 224.4 5.5%

Ebitda Margin 88.2% 88.5% (0.3 p.p) 86.7% 87.1% (0.4 p.p)


Net Income 582.9 550.6 5.9% 138.8 148.4 (6.5%)

Net Debt** 2,187.4 1,439.9 51.9% 2,187.4 1,439.9 51.9%

Net Debt / EBITDA*** 2.3 1.6 2.3 1.6

*Adjusted Operating Costs: excluding infrastructure costs

** Including Securities under Non-Current Assets

*** Annualized EBITDA

17

1,111.5 1,147.9

290.1 291.4

2013 2014 4Q13 4Q14


995.3 1,062.6

257.7 273.2

2013 2014 4Q13 4Q14

Net Revenue (R$ MM)

550.6 582.9

148.4 138.8

2013 2014 4Q13 4Q14

Net Income (R$ MM)

Corporate Law

Regulatory

726.2 781.4

178.5 168.6

2013 2014 4Q13 4Q14

Net Income (R$ MM)

981.0 1,018.9

241.0 253.6

88.3% 88.8% 83.1% 87.0%

2013 2014 4Q13 4Q14


880.6 937.1

224.4 236.8

88.5% 88.2% 87.1% 86.7%

2013 2014 4Q13 4Q14


(1) Adjustd Ebitda Margin

Transmission Financial Highlights - Combined

18

Generation Financial Highlights - Combined

Key Indicators "CORPORATE LAW (IFRS)"

R$ MM 2014 2013 Var.% 4Q14 4Q13 Var.%

Net Revenue 288.9 181.3 59.4% 129.0 49.4 161.1%

Operating costs (35.9) (27.4) 30.7% (12.6) (4.2) 201.4%


Energy Purchase (65.7) (28.3) 132.1% (24.6) (3.6) -


EBITDA (CVM 527) 168.3 112.7 49.3% 85.0 37.6 126.4%

Ebitda Margin 58.3% 62.2% (3.9 p.p) 65.9% 76.0% (10.1 p.p)

Financial Result (41.4) (45.6) (9.0%) (10.9) (11.1) (2.3%)

Net Income / Loss 82.2 29.0 184.0% 59.7 15.4 286.9%

Net Debt* 1,213.1 1,114.8 8.8% 1,213.1 1,114.8 8.8%

Net Debt / EBITDA** 7.2 9.9 3.6 7.4

* Includes Securities under Non-Current Assets

**Annualized EBITDA

19

Generation Financial Highlights - Combined

49.4

129.0

4Q13 4Q14

Net Revenue (R$ MM)

181.3

288.9

2013 2014

Net Revenue (R$ MM)

37.6

85.0

76.0% 65.9%

4Q13 4Q14


15.4

59.7

4Q13 4Q14

Net Income (R$ MM)

112.7

168.3

62.2% 58.3%

2013 2014


29.0

82.2

2013 2014

Net Income (R$ MM)

20

Indebtedness - Controlled

622.9

298.9

324.0

Gross Debt Equivalents Net Debt

Total Debt Dec/14

23%

77%

Debt Profile (%)

Short Term Long Term

37.3%

56.2%

6.5%

CDI

IPCA

Fixed

Total Debt Composition by Index (%)

582.8

40.1 Debentures

Finep

Total Debt Composition (in thousands of R$)

21

Indebtedness - Consolidated

3,977.0

3,350.8

626.2

Gross Debt Equivalents Net Debt

Total Debt Dec/14

Total Debt Composition by Index (%) Total Debt Composition (in thousands of R$)

14%

86%

Debt Profile (%)

Short Term Long Term

42.0%

28.3%

13.6% 1.7%

14.4%

CDI

TJLP

Fixed

Foreign Currency

IPCA

1,382.4

292.3

15.2 66.3

2,220.9

BNDES (TJLP / IGP-M)

Other Development Banks

Other Local Currency

Foreign Currency

Debentures

22

Indebtedness - Consolidated

Corporate (national scale) AA+

302.2

395.8

472.8

509.6

383.5 322.0 260.9

946.5 324.0 145.1 24.0

136.5

79.9 24.9

25.0

187.5

Cash and CashEquivalents

2015 2016 2017 2018 2019 2020 After 2020

Debt Amortization Schedule (R$ million)

Subsidiaries Holding

0.5

Bridges

62.5

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Dividends

On September 15, 2014, the Company’s Board of Directors approved the distribution of interim dividends totaling R$99,984,288.00

from the profit reserves in the balance sheet dated December 31, 2013, properly ratified by the shareholders at the Extraordinary

General Meeting held on October 2, 2014. Additionally on March 5, 2015, the Board of Directors recommended the distribution of R$

249,960,720.00 of the profit of the fiscal year ended on December 31, 2014, to be approved at the Annual General Meeting to be

held on April 15, 2015. Therefore, considering the distribution of dividends deliberate at the Company’s Board of Directors on

September 15, 2014 (which were not imputed to the minimum mandatory dividend for the fiscal year ended December 31, 2014) and

the recommendation of the Board of Directors for distribution of dividends, amounting R$ 249,960,720.00 of profit for the year ended

on December 31, 2014. Thus total shareholder payments will reach R$350.0 million, equivalent to R$1.68 per Unit.

29.7

82.1

29.1 47.8 47.6

104.7

350.0 350.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2007 2008 2009 2010 2011 2012 2013 2014

Dividends History (R$ million) and Payout Ratio (%)

101.6%

88.6%25.0%25.0% 25.0%

50.0%

100.0%

127.1%

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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.

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IR Contact

José Luiz de Godoy Pereira

IRO

Luiz Coimbra

IR Coordinator

Kassia Orsi Amendola

IR Analyst

Ph.: +55 (011) 4571-2400

[email protected]

mailto:[email protected]

4q14 results presentation

Business

energia dos ventos x

ferreira gomes energia

sinop alupar investimento

sale of shares

act of concentration

material fact

aneel order number

generation exposure