corporate presentation - bank of america merrill lynch

8/9/2019 Corporate Presentation - Bank of America Merrill Lynch

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Corporate Presentation

Bank of America Merrill Lynch

March 2015


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Light HoldingsDiversified structure which is comprised of the distribution, generation and commercialization segments.

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4

5

!

Light in numbers

"maz#nia $nergia

%enova

&uanh'es $nergia

&eneration

Comple(o de La)es

Distribution %* +tate Concession"rea

Population- mn mn /

"rea- 44,000 1m2 ,000 1m2 35

&DP- % 40! bn % 30! bn 5

Consumers ! mn 4 mn 5!

6unicipalities 73 8 84

5

HPP 9lha dos Pombos

+HP Paracambi

HPP +anta :ranca

3

8

1 IBGE (2010)

4

!

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%an;ings Among the largest players in Brazil

9?$% &$?6P"


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+hareholder +tructureEfficient combination of solid industry and financial players

11 Boar& mem3er!. 4 from the controllin

ro+ 2 in&e+en&ent! e 1 em+loyee!

nominate&

A 6alifyin 6orm of 7 mem3er! to

a++rove relevant +ro+o!al! !ch a!. M8A

an& &ivi&en& +olicy

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Corporate &overnanceDecision process assures transparenc and value creation

&eneral "ssembl

&eneral "ssembl

Eiscal Council

Eiscal Council

:oard of Directors

:oard of Directors

"uditors

Committee

"uditors

Committee &overnance and+ustainabilit

Committee

&overnance and+ustainabilit

Committee

Human

%esourcesCommittee

Human

%esourcesCommittee

Einances

Committee

Einances

Committee 6anagementCommittee

6anagementCommittee

Chief $(ecutive>fficer

Chief $(ecutive>fficer

*o'o :. Folini Carneiro %icardo Cesar C. %ocha Luis Eernando &uimar'es "ndreia %ibeiro *unGueira

Eernando "nt#nio E.%eis "ilton Eernando Dias ClIudio :ernardo 6oraes

Paulo %oberto %. Pinto

ChiefCommunications

>fficer

ChiefCommunications

>fficer

Luiz "ntonio %. $lias

LGSXY ADR-OTC6

Chief Einancial and

9nvestor %elations>fficer

Chief Einancial and

9nvestor %elations>fficer

Chief Legal >fficer

Chief Legal >fficer

Chief H% >fficer

Chief H% >fficer Chief Distribution

>fficer

Chief Distribution

>fficer Chief $nerg >fficer

Chief $nerg >fficer

Chief :usiness>fficer

Chief :usiness>fficer

Corporate6anagement >fficer

Corporate6anagement >fficer

,aitin to take office9#


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$nerg ConsumptionDistribution J 764

7

1Note. :o +re!erve com+ara3ility in the market a++rove& 3y Aneel in the tariff a&;!tment +roce!!9 the3ille& enery of the free c!tomer *-N ha! 3een con!i&ere& 3ack9

=>="L 6"%1$= K&?h -

9ndustrial

captive5.!

Eree

7./

>therscaptives

4.

Commercialcaptive3/.4

%esidentialcaptive8.5

+3.2%

+3.8% p.a.

19,18617,41

917,25

9

19,800

23.9ºC

24.4ºC

9M129M11

24.3ºC24.0ºC

9M13 9M14


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6ar;et :rea;down

8

$L$C=%9C9=B C>< K&?h

=>="L 6"%1$= J "CC6L"=$D

E%$$C"P=9@$

%$+9D$66$%C9"L >=H$%+ =>="L

+3.2%

9M13 9M14

15,209 16,048

19,186

3,978 3,752

19,800

+2.5%

2,686 2,747

2,837

151 161

2,908

+4.5%

5,909

637 663

6,175

1,039

1,042

4,229

3,190

2,928

3,970

+8.6%

6,2126,747

9M13 9M14 9M13 9M14 9M13 9M14 9M13 9M14

-6.1%

5,271 5,512


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Losses and Collection

9

L>++$+ K3 6>


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Loss %eduction +trateg$fficient combination between technolog and effective management

)tise oCo)nities

Co)nities

C+=>6$%+ $


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Mechanical Meter Display

11

=echnologO Centralized 6easuringse of new technologies in areas with a high level of losses


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Re!lt! con!tantly an& accrately monitore& 3y Liht>

Re!ltlinke& remneration for !ervice! +rovi&e&>

2 nit! im+lemente& =ith 511 tho!an&

client! (12? of total)>

200 tho!an&! a&&itional client! +er year 9

Fero Losses "reaPro)ectO Light LegalQ

12

$L$C=%>%1E>%C$6"


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"PF C>LL$C=9>


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%egulator "llowance for


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&eneration


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/55 6? 9nstalled Capacit*once!!ion! E@+irin nly in 202

16

HPP +anta :ranca

5 6?

HPP 9lha dos Pombos/! 6?

HPP Eontes


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Cont!acte ;ne! :!ee


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Power &eneration $(pansion!ene#able energy generation pro$ects% mainly through partnerships

!o>ect ?nstalle Ca'acit

M$ss)!e ;ne!M$ae!ae

'e!ational&ta!t

&ta"e

a!aca=i 25 20 2012 51%

enoa652.3 in o'e!ation

1,853.8 cont!acte

296 in o'e!ation

914 cont!acte

2008 - 2014

2015 @ 201915.87%

elo Monte 11,223 4,571 2016 2.49%

#)anhAes 44 25 2015 51%

La>es 17 15 2016 100%

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3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

1,552

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/153/4/15

3/4/15

3/4/15

3/4/15

3/4/153/4/15

3/4/15

3/4/15

1,520

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

1,421

3/4/15

68.5%

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/153/4/15

3/4/15

1,011

3/4/15

3/4/153/4/15

3/4/15

3/4/15

3/4/15

3/4/15

1,147

1,319

3/4/15

3/4/15

3/4/153/4/15

3/4/15

1,099

3/4/15

1,273

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

1,208

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15

3/4/15 F 51? Liht

15947? Liht" 29H? Liht

Power &eneration $(pansion9nstalled Capacit K6?

LightSs proportional Participation

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%$+L=+


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>perating Costs and $(penses

Manaea=leist!i=)tion

20.4%

#ene!ation anCoe!cialiation

19.6% Non anaea=le

ist!i=)tionBB 60.0%

& 'li%inatins nt cnsidered&& (nstr!ctin re#en!e nt cnsidered

D9+=%9:=9>< P6+> C>+=+ K%6+=+ K%6+=+ K%6 K8.5 K83. 4./ K7/!.0 K7!7.4 A0./

Provisions K7. K8!.7 78.8 K7!.3 K77.8 3.3

PCLD K8.7 K30.8 47./ K8/.8 K8/.8 0.

Contingencies K5.! K!. 3.3 K5/.7 K.0 8.5

Depreciation K8!. K37./ A7. K4. K7.3 A30.4

>ther operationalMrevenues e(penses

K/.0 K7.4 .8 K350.5 K38.0 5.0

=otal 5/.3 05. /.4 34. 37. 30.5

327

321

988

3,305

979

827

312 327

+4.8%

314313 9M149M13

987 979

-0.8%

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$:9=D" b segment

K% 6


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$:9=D"

;?*9M13

;?*9M14

Neteen)

e

Non-Manaea=l

e Costs

Manaea=le CostsM&

!oisions

e)lato!ssets anLia=ilities

e)lato!ssets anLia=ilities

>)ste;?*9M13

>)ste;?*9M14

"d)usted $:9=D" J 768 M 764 K% 6


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Dividends

26

Averae +ayot of 4? in the la!t 5 year!


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9ndebtedness

"verage =ermO 8.! ears

"6>%=9F"=9>< +CH$DL$ (R% MN)

27&(nsiderin/Hedge

& Principal nly

Noinal Cost eal Cost

C>+= >E D$:=

20122011 314

2.24%

8.21%

4.47%

11.27%

4.25%

11.03%

2013

9.68%

3.55%

261

791

1,055

866

1,210

721 733

479 581

(L12.0%

C*? 73.3%

?C

10.8% the!s3.5%

DH/;)!o B0.3%

4,151)65,229)6 5,543)6


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9nvestments

C;I H MNC;I ;J*$N

H MN

9M14

#ene!ation18.1

inist!ati

on27.8 the

!s7.7

*eelo'. o

*ist!i=)tion &ste

339.7

LossesCo=at227.9

?nestents in ;lect!ic ssets*ist!i=)tion

Coe!c./;ne!

;Kcienc8.3

519

2010

701

2011

2012

797

694

103

519

182

775

154

713

132

845

E30.5%

2013

482

9M13

9M14

88

54

394575

630

929

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?h invest in LightT

29

Rio a! a ho!t of ma;or event! *ommnitie! +acification ro3!ine!! environment Inve!tment +ro;ect! h3Enery Market ro=th

$conomic=ransformation

in theConcession "rea

rore!! in the :echnoloyroram (-mart Gri&)

Ne= net=ork an& electronic meter!in the +acifie& area!

JKero Lo!!e! Area roram

$nergLosses

%eduction

ro;ect! n&er con!trction =ith+artner!hi+!. Renova Belo Monte an&Ganhe! (total of 544 M,) -' La;e! n&er con!trction(17M,)9

&rowth in the&eneration:usiness

E@+iration of Relate&*ontract! (ec201")Ne= contract! in 201HEnery availa3le forcommercialiation

$nergCommercialization

focused on thefree mar;et

Li!te& in JNovo Merca&o ofBove!+a

Boar& *ommitee! =ith !tron+artici+ation in the &eci!ion makin+roce!! Incl&e& in the -!taina3ility

In&e@ (I-E) for the 7th year

:est Corporate&overnance

Practices

ivi&en& olicy. minimm 50?of net income>

Averae +ayot !ince 200.4?

Dividend trac;%ecord


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Disclaimer

his presentatin %ay incl!de rard*lin/ state%ents accrdin/ t Brailian re/!latins and

internatinal %#able #al!es) hese state%ents are based n certain ass!%ptins and analyses %ade by the

(%pany in accrdance ith its eperience, the ecn%ic en#irn%ent, %aret cnditins and !t!re e#ents

epected, %any hich are !t the (%panys cntrl) $%prtant actrs that can lead t si/nicant

dierences beteen the act!al res!lts and state%ents n !t!re e#ents r b!siness*riented res!lts incl!de

the (%panys strate/y, the Brailian and internatinal ecn%ic cnditins, technl/y, nancial strate/y,

de#elp%ents the p!blic ser#ice ind!stry, hydrl/ical cnditins, cnditins the nancial %aret,!ncertainty re/ardin/ the res!lts its !t!re peratins, plans, /als, epectatins and intentins, a%n/

thers) Beca!se these actrs, the (%panys act!al res!lts %ay si/nicantly dier r% thse indicated

r i%plicit in the state%ents n e#ents r !t!re res!lts)

he inr%atin and pinins herein %!st nt be !nderstd as rec%%endatin t ptential in#estrs, and

n in#est%ent decisin sh!ld be based n the #eracity, the !pdated r c%pleteness this inr%atin r

pinins) ne the (%panys pressinals r parts related t the% r its representati#es ill ha#e any

respnsibility r any lsses that can elapse r% the !se r the cntents this presentatin)

his %aterial incl!des declaratins n !t!re e#ents s!b%itted t riss and !ncertainties, hich are based n

c!rrent epectatins and pr:ectins n !t!re e#ents and trends that can aect the (%panys b!sinesses)

hese declaratins incl!de pr:ectins ecn%ic /rth and de%and and s!pply ener/y, in additin t

inr%atin n c%petiti#e psitin, re/!latry en#irn%ent, ptential /rth pprt!nities and ther

s!b:ects) ;ari!s actrs can ad#ersely aect the esti%ates and ass!%ptins n hich these declaratins are

based n)

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Contacts

*o'o :atista Folini Carneiro*

corporate presentation - bank of america merrill lynch

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