Conference Call

2th Quarter 2014

Highlights
Energy consumption grew by 3.0% between 2Q14 and 2Q13, driven by an 8.0% consumption
increase in the residential segment;
Non-technical losses/BT market in the last 12 months stood at 41.9%, 0.5 p.p. down quarter-overquarter with a drop of 2.3 p.p. year-over-year;

OPERATING

Collections fee in the quarter reached 103.5%, 0.7 p.p. down year-over-year;
Allowance for doubtful accounts (PCLD) of 1.7% of revenue from energy billing in 2Q14, 0.8 p.p.
down on PCLD of 2.5% recorded in 2Q13;
DEC e FEC, in the last 12 months, increase 26.21% and 16.91%, respectively, in comparation with
the same period of the previous year;
Net revenue, excluding construction revenue, grew by 1.4% year-over-year, totaling R$ 1,601.5
million;

FINANCIAL

Consolidated EBITDA in 2Q14 of R$239.3 million, 13.9% down on 2Q13;

Net income for 2Q14 totaled R$15.3 million, compared to a net income of R$58.2 million in 2Q13;
Consolidated net debt of R$5,229.6 million, 2.1% down on the same quarter last year;
CDE (Energy Development Account) transfer of funds to distribution companies to settle energy
purchase commitments with CCEE (Electricity Chamber of Trade);

CDE FUNDS

Amount of R$224.3 million in April and May was recorded in profit or loss as cost reduction with
Portion A;
Total transfer of R$1,385 million in the first half, reducing its period tariff deficit to R$250 million, which
will be passed on to consumers in the next tariff adjustment through the CVA.

Energy Consumption
Distribution Quarter
TOTAL MARKET (GWh)
+4.6%
+3.0%

5,669

22.7C

2Q11

1Note:

5,754

23.5C

2Q12

6,304

23.2C

2Q13

Free
20.3%

6,495

23.1C

2Q14

Industrial
captive
5.3%

Others
captives
14.0%
Residential
captive
32.8%
Commercial
captive
27.6%

To preserve comparability in the market approved by Aneel in the tariff adjustment process.
the billed energy of the free customer CSN has been considered back.

Energy Consumption
Distribution Accumulated
TOTAL MARKET (GWh)
+5.1%
+5.5%

11,960

11,934

13,145

13,869

25.7C
25.1C

1H11

1Note:

25.2C

1H12

Free
18.6%

Others
captives
13.6%
Residential
captive
35.2%

25.1C

1H13

Industrial
captive
5.1%

1H14

Commercial
captive
27.6%

To preserve comparability in the market approved by Aneel in the tariff adjustment process.
the billed energy of the free customer CSN has been considered back.

Total Market
ELECTRICITY CONSUMPTION (GWh)
+3.0%

TOTAL MARKET QUARTER

6,495

6,304

+2.8%

+8.0%

1,972

2,128

1,962
215

2,017
224

2Q13

2Q14

RESIDENTIAL

2Q13

1,793

2Q14

COMMERCIAL

1,319

4,954

5,176

-3.0%
+2.3%

1,428

1,748

1,349

1,085

1,385

1,041

342

344

2Q13

2Q14

964

49

54

893

910

2Q13

2Q14

OTHERS

INDUSTRIAL

CAPTIVE

942

FREE

2Q13

2Q14

TOTAL

Total Market
ELECTRICITY CONSUMPTION (GWh)

+5.5%

TOTAL MARKET - ACCUMULATED

13,869

13,145
+11.1%
5.7%

4,880
4,395
4,055
430

4,284
457

-2.6%
+4.2%

2,787

2,715

3,625
1,748

1H14

RESIDENTIAL

1H13

3,827

1H14

COMMERCIAL

2,086

1,990

103

109

1,806
893

1,880
910

1H13

1H14

2,010

701
342

705
344

1H13

1H14

OTHERS

INDUSTRIAL

CAPTIVE

11,292
5,176

10,526
1,909

1H13

2,576

2,618

FREE

1H13

1H14

TOTAL

Collection

COLLECTION RATE BY SEGMENT

Quarter

104.2% 103.5%

104.5% 105.1%

101.8% 102.9%

PCLD/Gross Revenue
(Billed Sales) - Quarter
108.1%

-0.8 p.p.

97.3%

3.4%

2.5%
1.7%

Total

Retail

2Q13

Large Clients

2Q14

Public Sector

2Q12

2Q13

2Q1 4

Loss Prevention
LOSS (12 MONTHS)

INSTALLED METERS
(Thousand Units)

- 2.3 p.p.

44.2%

8,582

43.7%

8,552

42.2%

42.4%

8,352

8,748

41.9%

8,815

509
432

5,953

5,905

5,738

5,955

351

5,972
122

2,629

2,647

2,614

2,793

2,843

Jun/13

Sep/13

Dec/13

Mar/14

Jun/14

Non-technical losses GWh

Technical losses GWh

227
30

7
115

197

2010
2009

2011
2010

102

79
272

2012
2011

330

2013
2012

Communities
Without Communities

% Non-technical
losses/ LV Market

116

393

Jun/14
2013

Losses Combat Actions

APZ Results
By June. the program coverd 505 thousand customers in 29 APZs. which ones 22 had
the results calculated:

-30.0 p.p
* Reflects the results accumulated until mar/14 since the begining of the implementation of each APZ.

Subtitle: N = N / Y = Yes.

Net Revenue
NET REVENUE BY SEGMENT (2Q14)*
Generation

NET REVENUE (R$MN)

7.5%

+11.5%

4,098
3,677

378

333

Distribution
80.5%**

Commercialization
12.0%

+3.5%

1,755

1,816

176

214

+11.2%

3.344
3,344

3.720
3,720

* Eliminations not considered

** Construction revenue not considered

+1.4%

1.580
1,580

1.602
1,602

NET REVENUE FROM DISTRIBUTION (2Q14)

2Q13

2Q14

1H13

1H14

Commercial (Captive)
42.6%

Industrial (Captive)

Construction Revenue
Revenue w/out construction
revenue

5.9%

Others (Captive) 12.2%

Network Use (TUSD)

(Free + Concessionaires)
7.8%

Residential (Captive)
31.5%

Operating Costs and Expenses

Generation and
Commercialization: R$ 249

COSTS (R$MN)*
2Q14

DISTRIBUTION PMSO COSTS (R$MN)

-3.6%

Non manageable
(distribution**): R$ 1,084

(15.2%)

-16.2%

(66.1%)

368

Manageable
(distribution): R$ 309

702

677

1H13

1H14

309

(18.8%)

2Q13

COSTS (R$MN)*
1H14

Non manageable
(distribution**): R$ 2,293
(66.0%)

R$ MN

2Q13

2Q14

Var.

(212.0)

(207.1)

-2.3%

Provisions

(66.6)

(14.1)

-78.8% (111.8)

(79.4)

-29.0%

PCLD

(48.4)

(36.1)

-25.5%

(77.4)

(61.4)

-20.8%

Contingencies

(18.2)

21.9

(34.4)

(18.0)

-47.5%

(83.8)

(86.2)

2.8%

(5.7)

(1.2)

-79.5%

PMSO

Depreciation

Generation and
Commercialization: R$ 506

Other operational/
revenues expenses

(14.6%)

* Eliminations not considered

** Construction revenue not considered

Manageable
(distribution): R$ 677
(19.5%)

2Q14

Total

(368.0)

1H13

1H14

(412.7) (412.3)

Var.
-0.1%

(164.5) (171.6)

4.3%

(12.9)

(13.3)

2.6%

(308.5) -16.2% (701.9) (676.6)

-3.6%

Tarif Deficit
The exposure to the spot Market and its high prices, which reflect the low levels of hydro
plant reservoirs and the dispatch of thermal plants, resulted in an expressive deficit for
distributors
Aporte CDE -1H14 (R$ MN)
Decree
8203
(jan/14)
SPOT market Involuntary Exposure

1,238

Availability contracts with thermal plants

299

Hydrological Risk

39

A-1 Auction Contract

30

A-0 Auction Contract

28

TOTAL

1,635

1,385
(1,635)

(250)

Tarif Deficit

CDE Fund
Total

Balance

The remaining balance of R$ 250 millions refers to the portion of items not covered by the decrees, with an emphasis on:
availability contracts in January , energy contracted through the A-1 auction, a portion of the energy contracted in the A-0
auction, hydrological risk, revenue from hydrological risk deducted from the January and February transfers and from the
cut in the April transfer
12

EBITDA
EBITDA BY SEGMENT (R$ MN)
+9.9%

699

636

Consolidated EBITDA
(R$ MN)

Distribution

36.7%

62.6%

244
45.8%

63.3%

55.3%

54.2%

2Q13

2Q14

Generation and Commercialization

Distribution

1H14

Var.

132.3 174.5 -24.2% 387.1 402.6 -3.9%

88.0

100.1 -12.1% 270.8 219.4 23.4%

EBITDA Margin (%)

66.0%

75.9% -9.9 p.p. 78.6%

79.1% -0.6 p.p.

Commercialization

23.9

4.4

449.3% 41.5

14.3 190.6%

EBITDA Margin (%)

11.1%

2.8%

Others and eliminations

(4.9)

(1.1) 360.2% (7.1)

Total

239.3 277.9 -13.9% 633.1 692.3 9.3%

Generation

EBITDA Margins (%)

1H13

1H14 1H13

12.5% -3.3 p.p. 12.2%

56.0%

279
37.4%

44.7%

Var.

9.2%

EBITDA Margin (%)

-12.5%

2Q14 2Q13

14.9%

8.3 p.p.

9.2%

17.6% -2.7 p.p. 18.9%

13.5% -1.3 p.p.

4.6%

4.6 p.p.

(3.3) 118.9%

18.6% -0.3 p.p.

EBITDA
Adjusted EBITDA 2Q13 / 2Q14
(R$ MN)

- 9.4%
- 13.9%

119

22

120

(110)
397

278

(2)

52

(4)

360
239

Adjusted
EBITDA
2Q13

Regulatory
Assets and
Liabilities

EBITDA
2Q13

Net
Revenue

NonManageable
Other
Provisions
Manageable
Costs
operacional
Costs
(PMSO)
revenues

Equity
Pikup

EBITDA
2Q14

Regulatory
Assets and
Liabilities

Adjusted
EBITDA
2Q14

EBITDA
Adjusted EBITDA 1H13 / 1H14
(R$ MN)
- 6.9%

+9.3%

376

220
854

Adjusted
EBITDA
1H13

(328)
(10)

(6)

32

EBITDA
1H13

794

692

633

Regulatory
Assets and
Liabilities

102

(6)

Net
Revenue

NonManageable
Other
Provisions
Manageable
Costs
operacional
Costs
(PMSO)
revenues

Equity
Pikup

EBITDA
1H14

Regulatory
Assets and
Liabilities

Adjusted
EBITDA
1H14

Net Income
ADJUSTED NET INCOME
2Q13 / 2Q14 (R$ MN)

-30.8%

- 73.8%

79

137

79
58

Adjusted Net Regulatory

Income
Assets and
2Q13
Liabilities

2Q13

(39)

EBITDA

(16)

15

Financial
Result

Taxes

95

(3)
15
Depreciation

2Q14

Regulatory Adjusted Net

Assets and
Income
Liabilities
2Q14

Net Income
ADJUSTED NET INCOME
1H13 / 1H14 (R$ MN)
- 6.8%

+ 43.1%

44

145

(36)

67

(8)

59

282

263
196

137

(3)

(16)
Adjusted Net Regulatory
Income
Assets and
1H13
Liabilities

1H13

EBITDA

Financial
Result

Taxes

Depreciation

1H14

Regulatory Adjusted Net

Assets and
Income
Liabilities
1H14

Indebtedness
U$/Euro
-2.7%
IPCA
11.0%

AMORTIZATION SCHEDULE* (R$ MN)

TJLP
13.3%

Average Term: 3.9 years

Others
3.7%

1,166

1,031
832

781

717

729
476

408
CDI
74.5%
*ConsideringHedge

* Principal only

NET DEBT

al
usto Re
Custo Real C

COST OF DEBT
11.03%

9.68%

10.49%

3.55%

3.87%

4,056.1

5,341.8

5,229.6

8.21%
4.25%

2011
2007

2.24%

2012
2008
Nominal Cost
2009

2.62

2Q14
set/10

2013
2009
Real Cost
2010

2011

2.90

20
09
2 010

2009

Jun/13

Custo Real

Mar/14

2.99

2010
ea
Custo R

Jun/14

Net Debt / EBITDA

2012

573

Investments
CAPEX BREAKDOWN
(R$ MN)
1H14

CAPEX (R$ MN)

929
701

154

797
103

845

182
775

694

2011

2012

327

358

54

26

273

332

713

519 519

2010

+9.5%

132

2013

1H13

Investments in Electric Assets (Distribution)

1H14

Generation
8.4
Commerc./
Energy
Eficiency
5.0

Losses
Combat
119.7

Administration
12.2
Others
5.0

Develop. of
Distribution
System
207.5

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.

Contacts
Joo Batista Zolini Carneiro
CFO and IRO

Gustavo Werneck
Superintendent of Finance and Investor Relations
+55 21 2211 2560
gustavo.souza@light.com.br

Mariana da Silva Rocha

IR Manager
+ 55 21 2211 2814
mariana.rocha@light.com.br

ri.light.com.br

www.facebook.com/lightri

twitter.com/LightRI