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) ¹
+4.6%
+3.0%
5,669
22.7ºC
2Q11
1Note:
5,754
23.5ºC
2Q12
6,304
23.2ºC
2Q13
Free
20.3%
6,495
23.1ºC
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) ¹
+5.1%
+5.5%
11,960
11,934
13,145
13,869
25.7ºC
25.1ºC
1H11
1Note:
25.2ºC
1H12
Free
18.6%
Others
captives
13.6%
Residential
captive
35.2%
25.1ºC
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
3
(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
Jun/13
Real Cost
2010
2011
20
09
2 010
2009
2Q14
set/10
2013
2009
2.90
Custo Real
Mar/14
2.99
2010
ea
Custo R
l
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 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 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
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