conference call 2nd quarter 2013. highlights 2.6% increase in net revenue (without construction...
TRANSCRIPT
Conference Call
2nd Quarter 2013
Highlights
2.6% increase in Net Revenue (without construction revenue) reaching R$ 1,670.9 million in the 2Q13;
EBITDA of R$ 277.9 million in 2Q13, 8.9% up, as a consequence of the higher participation of the generation activity. Adjusted by the regulatory assets (CVA), it reaches R$ 397.2 million, 20.1% above 2Q12.
Net Income of R$ 58.2 million in the quarter, an increase of 46.2% over 2Q12. Adjusted by CVA. it reaches R$ 136.9 million, 52.5% above 2Q12.
Net Debt of R$ 4.056.1 million with a multiple for covenants at 2.62x.
RESULTS
Consumption grew 2.5% compared to 2Q12, mainly driven by the commercial and industrial segments whch increased by 5.1% and 4.1%, respectively;
Collection rate for the first quarter reached 104.2%. 30 bps above the 2Q12;
Non-technical losses (LTM) of 44.2%, 70 bps down on march/2013;
In 1H13, investments amounted R$ 326.7 million, of this total, R$ 272.8 million went to the distribution segment.
OPERATIONAL
Aneel announced the preliminary proposal of Light SESA’s Tariff Revision, and the details will be discussed in a Public Hearing, with an on-site meeting in the city of Rio de Janeiro, in September, 13.
REGULATORY
Industrial6%
Residencial33%
Comercial30%
Outros Cativos15%
Livre16%
2T10 2T11 2T12 2T13
Energy Consumption Distribution – Quarter
+2.5%
5,7545,669
23.5ºC
23.2ºC
2Q122Q11
5,4605,897
2Q10
22.7ºC22.7ºC
+2.6%
2Q13
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
Industrial5.8%
Free16.0%
Others15.1%
Commercial29.6%
Residential33.4%
2T10 2T11 2T12 2T13
1S10 1S11 1S12 1S13
23,0
23,5
24,0
24,5
25,0
25,5
26,0
26,5
27,0
27,5
28,0
1S10 1S11 1S12 1S13
1S10
1S11
1S12
1S13
Energy Consumption Distribution – Half
+3.1%
11,934
11,960
25.2ºC
25.1ºC
1S121S11
11,585
12,303
1S10
25.1ºC
25.5ºC
+2.0%
1S13
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
Industrial5.7%
Free14.4%
Others14.7%
Commercial29.5% Residential
35.7%
With the consumption no longer billed by the change in criteria. the total energy consumption increase in the concession area would be 3.4% over 2Q12.
Industrial6%
Residencial36%
Comercial29%
Outros Cativos15%
Livre14%
2T12 2T132T12 2T13 2T12 2T13 2T12 2T13 2T12 2T13
Total Market
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL
2Q12 2Q13
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – QUARTER
2Q12 2Q13 2Q12 2Q13 2Q12 2Q13 2Q12 2Q13
FREECAPTIVE
+2.5%
+5.1%
+0.1%
+0.6%
889 893
937
48 49
942
1,867
182215
1,962
373 342
980
607 678
1.021
1,969 1,972
1,685 1,748
4,9164,954
5,754
837 942
5,897
+4.1%
1S12 1S131S12 1S13 1S12 1S13 1S12 1S13 1S12 1S13
+3.1%
10,29510,52
6
11,934
1,639 1,777
12,303
+2.2%
1,771 1,806
1,868
98 103
1,909
+6.5%
3,808
374430
4,055
774 701
1,941
1,167
1,244
1,945
+1.8%
4,317 4,395
0.2%
3,434 3,625
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL
1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13
FREECAPTIVE
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – HALF
Total Market
Total Varejo Grandes Clientes Poder Público
2T12 2T13
mar-12 mar-13
Collection
108.1%
COLLECTION RATE12 MONTHS
COLLECTION RATE BY SEGMENTQUARTER
103.9%104.2%
104.5%105.0% 100.1
%
101.8%
107.4%
2Q12
2Q13
98.2% 99.5%
Jun/12 Jun/13Total Retail Large Clients
Public Sector
Total Varejo Grandes Clientes Poder Público
1S12 1S13
mar-12 mar-13
Collection
102.5%
COLLECTION RATE12 MONTHS
COLLECTION RATE BY SEGMENTHALF
99.3%102.5
%102.0%
98.0%
99.7%103.4
%
104.0%
1H12 1H13
98.2% 99.5%
Jun/12 Jun/13Total Retail Large Clients
Public Sector
1S12 1S12
1S12 1S12
jun/12 set/12 dez/12 mar/13 jun/13
Loss Prevention
INCORPORATIONGWh
1H131H12
69.4
50.4+37.6%
ENERGY RECOVERYGWh
1H131H12
35.635.3
LOSS (12 MONTHS)
43.1%42.2
% 32.9%
% Non-technical losses/ LV Market
Non-technical losses GWh
Technical losses GWh
% Non-technical losses / LV Market - Regulatory
5,615
2,432
7,838 8,047
44.2%
+1.0%
Mar/13Jun/12 Jun/13
2,381
5,457
45.4%
6,029
2,618
8,647
Sep/12
6,007
2,577
8,584
Dec/12
44.9%
5,953
2,629
8,582
mar-12 mar-13
mar-12 mar-13
Losses Control InitiativesResults until June/13
Average losses reduction: 26.0 p.p.Average Collection increase: 7.0 p.p.
Average losses reduction : 51.8 p.p.Average Collection increase : 80.4 p.p.
FavelasZero Losses Area (APZ)
NeighborhoodClient
NumbersNon-Technical Losses / Low Voltage Market *
Collection Rate
Curicica 13.034 11,9% 99,0%Realengo 10.141 15,8% 98,1%Cosmos 35.216 20,8% 105,1%Sepetiba 18.960 31,5% 97,4%Caxias 1 e 2 13.907 22,9% 93,7%Belford Roxo 1 e 2 20.005 29,1% 94,8%Vigário Geral 16.141 15,8% 99,6%Caxias 3 16.768 22,9% 98,7%Nova Iguaçu 1 32.423 31,5% 97,9%Nova Iguaçu 2 20.500 24,5% 96,2%Nilópolis 9.923 28,5% 94,1%Nilópolis Convencional 11.080 14,0% 96,7%Ricardo de Albuquerque 24.593 18,1% 97,6%Mesquita 8.759 34,0% 94,8%Cabritos/Tabajaras/Chapéu Mangueira/Babilônia 5.277 11,6% 96,7%Coelho da Rocha 17.621 16,8% 91,6%Batan 7.151 9,5% 103,5%Total 281.499 22,5% 98,2%* Reflects the results accumulated until jun/13 since the begining of the implementation of each APZ.
Before Current Before Current
Santa Marta 2009 95,0% 5,1% 0,2% 98,3%Cidade de Deus 1 2010 52,1% 14,5% 23,1% 96,2%
Chapéu Mangueira 16,2% 101,4%Babilônia 5,4% 97,1%Cabritos 1,4% 96,6%
Tabajaras 9,5% 95,1%Formiga 2011 73,3% 10,8% 31,4% 92,6%
Batan 2012 61,8% 8,9% 1,2% 91,0%Borel 2013 60,5% 26,1% 9,4% 84,3%
Collection
2010 62,7% 8,6%
2011 62,3% 11,8%
Areas Conclusion Year
Losses
Net Revenue
Industrial 5.5%
NET REVENUE (R$MN)
Generation 7.4% Distribution
83.1%**
NET REVENUE BY SEGMENT (2Q13)*
Commercialization 9.5%
* Eliminations not considered
** Construction revenue not considered
NET REVENUE FROM DISTRIBUTION (2Q13)
Commercial 30.0%
Others (Captive) 12.7%
Network Use (TUSD)(Free +
Concessionaires)
9.7% Residential 42.1%
Construction RevenueRevenue w/out construction revenue
2T12 2T13 1S12 1S132Q132Q12
+3.2%
,.846.5
1,790.1
162.2
1,670.9
1,627.9
175.6
+4.8%
3,389.1
3,532.0
332.8299.7
3,688.8
3,864.8
+2.6%
+4.2%
1H131H12
Operating Costs and Expenses
Manageable (distribution): R$ 358.4(22.4%)
Generation and Commercialization: R$
207.9(13.0%)
Non manageable (distribution): R$ 1,036.6(64.7%)
* Eliminations not considered
** Construction revenue not considered
DISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*2Q13
R$ MN 2Q12 2Q13 Var. 1H12 1H13 Var.
PMSO 169.9 202.3 19.0% 337.6 386.3 14.4%
Provisions 84.0 66.6 -20.7% 170.5 111.8 -34.4%
PCLD 72.2 48.4 -33.0% 133.8 77.4 -42.1%
Contingencies 11.8 18.2 54.2% 36.7 34.4 -6.3%
Depreciation 67.9 83.8 23.6% 143.6 164.5 14.6%
Other operational/revenues expenses
0.8 5.7 567.2% 4.1 12.9 219.2%
Total 322.6 358.4 11.1% 655.7 675.5 3.0%
2T12 2T13 1S12 1S13
322.6 358.4
+11.1%
2Q132Q12 1H131H12
655.7 675.5
+3.0%
Distribuição ;
62,6%; 62,57%
Geração; 35,9%;
35,89%
Comercialização;
1,5%; 1,54%
EBITDA
CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*2Q13
Generation 35.9% (EBITDA Margin: 75.9%)
Commercialization 1.5%
(EBITDA Margin: 2.5%)
Distribution 62.6%(EBITDA Margin: 11.7%)
*Eliminations not considered
2T12 2T13 1S12 1S13
277.9255.1
+8.9%
2Q12 2Q13 1H12 1H13
633.1688.5
-8.0%
EBITDA Ajustado -
2T11
Ativos e Passivos
Regulatórios
EBITDA -2T11
Receita Líquida
Custos Não Gerenciáveis
Custos Gerenciáveis
(PMSO)
Provisões EBITDA -2T12
Ativos e Passivos
Regulatórios
EBITDA Ajustado -
2T12
EBITDA
EBITDA2Q12
EBITDA2Q13
Net Revenu
e
Non-Manageabl
e Costs
Manageable Costs (PMSO)
Provisions
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
2Q12
Adjusted EBITDA
2Q13
EBITDA – 2Q12 / 2Q13(R$ MN)
Other operation
al/revenues
+ 20.1%
+8.9%
Equity Pick-up
76
331
255
43 1 (33)(6)
0.2119
39717
278
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
EBITDA1H12
EBITDA1H13
Net Revenu
e
Non-Manageabl
e Costs
Manageable Costs (PMSO)
Provisions
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted EBITDA
1H12
Adjusted EBITDA
1H13
EBITDA – 1H12 / 1H13(R$ MN)
Other operational/
revenues
+ 12.0%
-8.0%
Equity Pick-up
74
762
689
143 (191)
(1)
220
854
59
633
(52) (13)
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
2Q12 2Q13EBITDA
Financial Result
Taxes Others
ADJUSTED NET INCOME 2Q12 / 2Q13 (R$ MN)
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted Net Income
2Q12
Adjusted Net Income
2Q13
+ 46.2%
+ 52.5%
LL Ajustado 2T12
Ativos e passivos
Regulatórios
2T12 EBITDA Resultado Financeiro
Impostos Outros 2T13 Ativos e passivos
Regulatórios
LL Ajustado 2T13
Lucro Líquido e Lucro Líquido Ajustado 1T12/1T13 - R$ Milhões
9050
40
23
26(14
) (16)
58
79137
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
1H12 1H13EBITDA
Financial Result
Taxes Others
ADJUSTED NET INCOME 1H12 / 1H13 (R$ MN)
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities
Adjusted Net Income
1H12
Adjusted Net Income
1H13
- 23.9%
+ 23.6%
LL Ajustado - 1S12
Ativos e passivos
Regulatórios
1S12 EBITDA Resultado Financeiro
Impostos Outros 1S13 Ativos e passivos
Regulatórios
LL Ajustado - 1S13
Lucro Líquido e Lucro Líquido Ajustado 2011/2012 - R$ Milhões
228
49
180
(55) 16 16 (20)
137
145282
Custo Nominal Custo Real
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 After
2022
Indebtedness
Average Term: 4.2 years
AMORTIZATION SCHEDULE* (R$ MN)
Nominal Cost Real Cost
NET DEBT¹Without Pension Fund
*ConsideringHedge
* Principal only
COST OF DEBT
2012201120102007 2008 2009 set/10
Custo Real Custo Nominal
Jun/13
Net Debt / EBITDA
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
3T09 3T10 9M09 9M10Jun/13Mar/13
2.24%
8.21%
4.87%
11.08%
4.25%
11.03%
8.84%
2.40%
2009 2010
Custo Real
Custo Real
4,031.4 4,056.1
2.73 2.62
1 Reclassified to reflect the deconsolidation results of jointly controlled companies.
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Após
2022
266
663772
1,007
799665
437 442 442192
347
TJLP15.6%
CDI 72.4%
IPCA 10.1%
Others 1.5%
U$/Euro 0.5%
Investments
CAPEX (R$ MN)CAPEX BREAKDOWN
(R$ MN)1H13
Generation7.1
Administration 13.7
Others5.2
Develop. of Distribution System
175.0
Losses Combat
92.6
Investments in Electric Assets (Distribution)
Commerc./Energy
Eficiency33.1
2008 2009 2010 2011 2012 2008 2009 2010 2011 9M11 9M1220102009
563.8
928.6
700.6
2011 2012
796.8
694.1
102.7
446.9
116.9
518.8
181.8774.8
153.8
2008 2009 2010 2011 9M11 9M121H131H12
302.3 272.8
26.0 53.9
328.4 326.7
-0.5%
Tariff Review
Preliminary proposal - Main issues:
1) Remuneration Asset Base: • Gross Remuneration Asset Base: R$ 11,451,023,315• Net Remuneration Asset Base : R$ 6,398,174,913
2) Regulatory Non-Technical Losses: • Starting point: 31.82%• Reduction trend: 1.195 p.p.
Work Group comprised of the Aneel’s technician within thirty days as from August 7, 2013
Next steps:September, 13 – Public Hearing meetingOctober, 3 – Aneel sends new proposal to Light and consumers’ representatives (estimate)October, 29 – Aneel’s Board Meeting (estimate)November, 7 – Tariff Review
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
Luiz Felipe Negreiros de SáSuperintendent of Finance and Investor Relations
+55 21 2211 [email protected]
Gustavo WerneckIR Manager
+ 55 21 2211 [email protected]
www.light.com.br/ri www.facebook.com/lightri twitter.com/LightRI