Conference Call

3rd Quarter 2014

Highlights

The distributor s energy consumption fell by 1.8% in 3Q14 over 3Q13, reflecting the
13.0% reduction in the industrial segment;

OPERATING

Non-technical losses (12 months of 41.3%, 0.6 p.p. down on June 2014 and 2.4 p.p.
less than in September 2013;

Third-quarter collection rate of 102.0%;

PCLD totaled 1.6% of 3Q14 gross billed energy, versus 2.0% in 3Q13;

DEC and FEC (12 months improved by 35% and 26%, respectively, over September
2013;

Consolidated net revenue moved up by 1.5% over 3Q13 to R$1,581.1 million;

Third-quarter consolidated EBITDA stood at R$183.6 million, 74.6% down on 3Q13;

FINANCIAL

Net loss of R$53.1 million in 3Q14, versus net income of R$321.5 million in the same
period last year;

Consolidated net debt of R$5,543.6 million, 6.0% up on the previous quarter;

REGULATORY

Average tariff adjustment of 19.23% for Light SESA as of November 7, 2014;

Average impact of 17.76% on residential consumers.
2

Energy Consumption
Distribution Quarter
TOTAL MARKET (GWh)
+4.7% p.a.
-1.8%

5,299
5,299

21.7C
21.7C

3Q11

5,486

22.4C

3Q12

6,042

21.6C

3Q13

Free
18.9%

5,931

21.8C

3Q14

Industrial
captive
5.3%

Others
captives
13.9%
Residential
captive
34.1%
Commercial
captive
27.8%

1Note:

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)
+3.8% p.a.
+3.2%

17,259

17,419

24.0C
24.0C

24.3C

9M11
9M11

9M12
9M12

19,186

Free
19.8%

19,800
19,800

Industrial
captive
5.7%

Others
captives
14.6%
23.9C

9M13
9M13

24.4C

9M14
9M14

Residential
captive
31.5%
Commercial
captive
28.4%

1Note:

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)
TOTAL MARKET QUARTER
-1.8%

6,042

+2.0%

+2.7%

1,818

1,867

1,854
1,854

1,891

207

206

3Q13

3Q14

RESIDENTIAL

3Q13

1,685

3Q14

COMMERCIAL

1,359

1,175

4,682

4,755

3Q13

3Q14

-13.0%

1,442

-1.1%

1,255
928
928

1,647

5,931

1,104

337

3Q13

3Q14

52

880

867

3Q13

3Q14
OTHERS

INDUSTRIAL

CAPTIVE

48
918

338

918

TOTAL

FREE
5

Total Market
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET - ACCUMULATED
+3.2%

19,186

+8.6%

6,212

3,978

3,752

15,209

16,048

9M13
9M13

9M14
9M14

+4.5%

6,747

5,909
5,909

6,175

637

663

5,271
5,271

9M13
9M13

19,800

9M14
9M14

RESIDENTIAL

9M13
9M13

5,512

9M14
9M14

COMMERCIAL

-6.1%
+2.5%

4,229

3,970

3,190

2,928

1,039

1,042

9M13
9M13

9M14
9M14

2,908
2,908

151

161

2,686

2,747

9M13
9M13

9M14
9M14

OTHERS

INDUSTRIAL

CAPTIVE

2,837
2,837

TOTAL

FREE
6

Collection

PCLD/Gross Revenue
(Billed Sales) - Quarter

COLLECTION RATE BY SEGMENT

Quarter

97.9%
97.9%

102.0%
102.0%

98.0%
98.0%

102.9%
102.9%

98.8%

103.4%
103.4%

-0.4 p.p.

95.7%
95.7% 95.2%
95.2%
1.9%
1.9%

2.0%
2.0%
1.6%

Total

Retail

3Q13

Large Clients

Public Sector

3Q12

3Q13

3Q 1 4

3Q14

Tariff Readjustment of 2014

After November 7th Discos costumers will observe an average increase of 19.23% in their
electricity bills. Residential costumers will notice a lower-than-average increase of 17.76%

Transfer of variation in
Parcel A and B

Variation in financial
accounts

+14.54%

+8.64%

23.18%

1.31%
-3.95%

19.23%

7.33%
0.58%
11.07%

2.89%

Energy Transmission
Purchase and Sector
Charges

Parcel B

CVA Balance

Other
Tariff
2013
Financial Readjustment Financial
Items
Additions

Voltage Level
(Consumption
segment)

Average
Increase

A2

20.25%

A3a

19.39%

A4

19.15%

AS

19.83%

B1 (Residential)

17.76%

B2 (Rural)

21.74%

B3 (Commercial)

21.50%

B4 (Il. Public)

22.65%

High Voltage

19.46%

Low Voltage
Average
Readjustment

19.11%
19.23%

Average
costumer
tariff
increase

From the average costumer increase of 19.23%, Parcel A costs accounted for 18.65% and Parcel B for only 0.58%.

Loss Prevention
LOSS (12 MONTHS)

INSTALLED METERS
(Thousand Units)

- 2.4 p.a.

43.7%

8,552

42.2%

42.4%

8,352

8,748

41.9%

8,815

41.3%

570

8,754
432
351

5,905

5,738

5,955

5,972
5,972

5,904

2,647

2,614

2,793

2,843

2,850

Sep/13
Sep/13

Dec/13
Dec/13

Mar/14
Mar/14

Jun/14
Jun/14

Sep/14
Sep/14

NonNon-technical losses GWh

% NonNon-technical
losses/ LV Market

Technical losses GWh

227
122

30

7
115

197

2010

2011

79
272

2012

131

102
330

2013

439

Sep/14
Sep/14

Communities
Without Communities

Losses Combat Actions

APZ Results
By September. the program coverd 511 thousand customers in 29 APZs. which ones 26 had
the results calculated:
Neighborhood

Curicica
Realengo/Batan
Cosmos 1
Cosmos 2
Sepetiba
Caxias 1 e 2
Belford Roxo 1 e 2
Vigrio Geral
Caxias 3
Nova Iguau 1
Nova Iguau 2
Nilpolis
Mesquita + Nilpolis Convencional
Ricardo de Albuquerque
Cabritos/Tabajaras/Chapu
Mangueira/Babilnia/Santa Marta
Coelho da Rocha
Caxias 4
Alemo
Cidade de Deus 1
Tomazinho
Formiga/Borel/Macaco/Salgueiro/Andara
Monte Lbano
Caxias 5
Cordovil
den
Nova Iguau 3
Mdia

Implementation Year

Number of
clients

Non-Technical Losses /
Grid Load*

Collection Rate
UPP Area

Before

Current

Before

Current

2010
2010/2013
2012
2012
2012
2012
2013
2012
2013
2013
2013
2013
2010
2013

13.461
20.281
18.392
19.737
21.034
14.430
21.962
17.758
17.478
20.861
22.098
10.660
20.083
26.033

38%
38%
49%
46%
57%
59%
63%
35%
43%
49%
46%
42%
51%
35%

10%
10%
14%
15%
31%
34%
23%
12%
16%
28%
20%
28%
17%
12%

95%
94%
92%
92%
88%
83%
88%
94%
96%
90%
88%
90%
84%
94%

98%
98%
98%
106%
97%
95%
96%
101%
96%
98%
98%
96%
98%
98%

N
N/Y
N
N
N
N
N
N
N
N
N
N
N
N

2012

8.351

68%

11%

62%

97%

2013
2013
2014
2011
2013
2012
2013
2014
2014
2014
2014

18.847
19.872
13.538
19.302
12.874
17.942
10.083
21.913
12.501
18.193
20.704
458.388

41%
42%
63%
52%
43%
51%
36%
49%
28%
55%
49%
49%

11%
15%
32%
31%
17%
27%
17%
33%
16%
15%
31%
20%

92%
90%
91%
84%
87%
50%
92%
94%
93%
86%
89%
90%

100%
100%
96%
91%
97%
91%
97%
93%
98%
97%
100%
98%

N
N
Y
Y
N
Y
N
N
N
N
N

* Reflects the results accumulated until Sep/14 since the begining of the implementation of each APZ.
Subtitle: N = N / Y = Yes.

10

Net Revenue
NET REVENUE BY SEGMENT (3Q14)*
(R$MN)

NET REVENUE (R$MN)

+10.8%

5,936
5,356

634

455

128

+9.4%
+8.2%

1,679
122 +1.5%

1,838

1,557

1,581

3Q13

Generation

4,901

5,301

Distribution

1,360

79.4%**
79.4%**

227

7.4%

Commercialization
13.2%
13.2%

257

3Q14

9M13

9M14

* Eliminations not considered

** Construction revenue not considered

Construction Revenue
Revenue w/out construction revenue

11

bft81

Operating Costs and Expenses

DISTRIBUTION MANAGEABLE COSTS (R$MN)

COSTS (R$MN)*
9M14

3,305

Generation and
Commercialization:
(16.2%)

-0.8%

Non manageable
(distribution**):
(64.3%)

** Construction revenue not considered

979

9M13
9M13

9M14
9M14

+4.8%

312

327

3Q13

3Q14

827
979
Manageable
(distribution):
(19.5%)

* Eliminations not considered

987

R$ MN

3Q13

3Q14

Var.

9M13

9M14

(568.8) (570.2)

Var.

PMSO

(182.5) (181.6)

-0.5%

Provisions

(41.0)

(50.1)

20.2% (152.9) (129.5) -15.3%

PCLD

(3.1)

(29.8)

-19.6% (114.6)

(91.2)

-20.4%

Contingencies

(3.9)

(20.3)

419.8%

(38.3)

0.1%

Depreciation

(86.0)

(91.4)

6.3%

(250.5) (263.0)

5.0%

Other
operational/
revenues
expenses

(1.9)

(3.4)

79.6%

(14.8)

(16.7)

12.5%

Total

311.5

326.6

4.8%

987.0

979.4

-0.8%

(38.3)

0.2%

12

Slide 12
bft81

Tabela - conferir se no 2Q ao invs de 1T

bruno farias teixeira 8101601, 8/11/2014

Tariff 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

Tariff Deficit
(R$ MN)
SPOT market Involuntary Exposure

1,082.2

Availability contracts with thermal plants

416.3

Hydrological Risk

167.5

A-1 Auction Contract

43.4

A-0 Auction Contract

71.2

Total Deficit

ACR Account Funds -9M14

9M14 (R$ MN

1,556
(1,781

(225

1,780.6

ACR Fund Total

(1,556.1)

Balance Deficit

224.5

87.4% of
deficit
covered

Tariff Deficit

ACR Fund
Total

Balance

13

EBITDA
EBITDA BY SEGMENT (R$ MN)

Consolidated EBITDA
(R$ MN)

3Q14

3Q13

9M14

9M13

137.1

608.9

524.3

1,011.5

10.1%

43.8%

11.5%

23.1%

24.5

104.9

295.3

324.4

19.2%

79.0%

62.5%

79.1%

23.6

9.3

88.8

23.5

EBITDA Margin (%)

10.4%

6.0%

13.1%

5.1%

Others and eliminations

(1.7)

(1.1)

(32.5)

(4.3)

Total

183.6

722.0

875.8

1,355.1

EBITDA Margins (%)

11.6%

46.4%

16.5%

27.6%

Distribution
EBITDA Margin (%)

25.
25.6%

Generation56.0%
56.0%
EBITDA Margin (%)

15.8%

42.
42.3%
74.
74.4%

84.2%

3Q13

57.
57.7%

26.
26.0%
74.
74.0%
3Q14

9M13

9M14

Commercialization

Generation and Commercialization

Distribution
Percentages does not consider eliminations.

14

EBITDA
Adjusted EBITDA 3Q13 / 3Q14
(R$ MN)

- 36.3%

- 74.6%

24
(329)
(569)
722
17

393

(3)

(9)

67

250

184

Adjusted
EBITDA
3Q13

Regulatory
Assets and
Liabilities

EBITDA
3Q13

Net
Revenue

NonNonManageable
Other
Provisions
Manageable
Costs
operacional
Costs
(PMSO
revenues

Equity
Pikup

EBITDA
3Q14

Regulatory
Assets and
Liabilities

Adjusted
EBITDA
3Q14

15

EBITDA
Adjusted EBITDA 9M13 / 9M14
(R$ MN)

- 16.2%
- 35.4%

400
(109)

(896)
0,2

(2)

23

169

(5)

1,355

1,246

1,044

876

Adjusted
EBITDA
9M13
9M13

Regulatory
Assets and
Liabilities

EBITDA
9M13
9M13

Net
Revenue

NonNonManageable
Other
Provisions
Manageable
Costs
Operacional
Costs
(PMSO
Revenues

Equity
Pikup

EBITDA
9M14
9M14

Regulatory
Assets and
Liabilities

Adjusted
EBITDA
9M14
9M14

16

Net Result
ADJUSTED NET RESULT
9M13 / 9M14 (R$ MN)
- 34.3%

- 68.9%

(72)

458

387

(479)

111
(14)
254
169
(3)

143

8
Adjusted Net
Result
9M13
9M13

Regulatory
Assets and
Liabilities

9M13
9M13

EBITDA

Financial
Result

Taxes

Depreciation

9M14
9M14

Regulatory
Assets and
Liabilities

Adjusted Net
Result
9M14
9M14

17

Indebtedness
U$/Euro *
-3.1%
IPCA
11.4%

AMORTIZATION SCHEDULE* (R$ MN)

TJLP
10.7%
10.7%

Average Term: 3.7 years

Others
3.7%

1,055
791

1,210
866

721

733

2019

2020

479

581

261

CDI
77.3%

2014

*ConsideringHedge

2015

2016

2017

2018

2021

* Principal only

After
2021

NET DEBT
COST OF DEBT
11.03%
8.21%
4.25%

2011

2.24%

2012
Nominal Cost

5,229.6

9.68%

11.27%

3.55%
3.55%

4.47%

2013

3T14

Real Cost

5,543.6

4,151.6

2.99

2.68

Sep/13
Sep/13

Jun/
Jun/14

3.39

Sep/14
Sep/14

Net Debt / EBITDA

18

Investments
CAPEX BREAKDOWN
(R$
(R$ MN
9M14

CAPEX (R$
(R$ MN
929
701

154

797
103

845
132

630
482

182
775

694

713

519 519

2010

+30.5%
+30.5%

88
394

2011

2012

2013

54

9M13
9M13

Generation
18.1
Commerc./
Energy
Eficiency
8.3

Administration
27.8
Other
s
7.7

575

9M14
9M14

Losses
Combat
227.9

Develop. of
Distribution
System
339.7

Investments in Electric Assets (Distribution

19

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.

20

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
21