Conference Call
4º Quarter of 2012
Highlights
 Consumption grew 5.2% compared to 4Q11, manly driven by the major temperature and by the
commercial segment whch increased its consumption by 13.5%. In 2012 the consumption grew 2.0%.
Adjusting by the clients with long-term default the consumption increase was 3,0%;
OPERATIONAL
 Collection rate (LTM) for the last 12 months reached 98.0%, 60 bps above the same period last year;
 Non-technical losses reached 45.4% over the low-voltage market, due to the change in criteria of clients
with long-term default;
 In 2012, investments amounted R$796.8 million, been R$694.1 million for the distribuition segment only.
 24.5% increase in Net Revenue (without construction revenue) reaching R$ 1,963.6 million in the 4Q12
and R$ 6,943.1 million in 2002, an increase of 12.9%.
RESULTS
 R$ 483.9 million EBITDA in 4Q12, 49.5% increase. In 2012, EBITDA reached R$ 1,456.2 million, 17.7%
higher than in the 2011.
 R$ 160.0 million of net Income in 4Q12, an increase of 21.3%. In 2012, net income was up 24.0%,
totaling R $ 423.9 million.
CAPITAL
MARKETS
 On March 25, Board of Directors approved the proposal to distribute additional dividends of R$
91,770,327.00, or R$ 0.45 per share, to be decided at the OGM in April.
 Net debt of R$ 4,273.1 million, and multiple for covenants effect of 2.9x.
Energy Consumption
Distribution – Quarter
TOTAL MARKET (GWh) ¹
+1.5%
Out ros Cativos
+5.2%
5,716
25.9ºC
5,655
24.6ºC
5,673
5,965
26.1ºC
23.9ºC
15%
With the consumption no
longer billed by the
change in criteria, the
total energy consumption
increase in the concession
Série1 be 6.3% over
area would
2011.
Comercial
4Q09
4T09
4Q10
4T10
4Q11
4T11
4Q12
4T12
4T09
4T10
4T11
4T12
1Note:
Free
14%
Industrial
7%
Others
15%
Commercial
30%
29%
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.
Residential
34%
Energy Consumption
Distribution – Year
TOTAL MARKET (GWh) ¹
+2.9%
+2.0%
21,492
22,384
22,932
Out ros Cativos
23,384
15%
27,5
25,5
23,5
25.0ºC
24.5ºC
24.0ºC
24.3ºC
21,5
With the consumption no
longer billed by the change
in criteria, the total energy
consumption increase in
2009
the concession area would
2010over 2011.
be 3.0%
2012
2009
2009
2010
2010
2011
2011
2012
2012
Comercial
Commercial
29%
29%
15,5
2009
2010
2011
2012
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.
1Note:
Industrial
7%
Others
15%
2011
19,5
17,5
Free
14%
Residential
35%
Total Market
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – QUARTER
+5.2%
5,965
5,673
2,006
2,032
1,752
-1.3%
1,010
558
4T11
4Q11
4T12
4Q12
RESIDENTIAL
165
1,988
192
996
612
452
384
4T11
4Q11
4T12
4Q12
INDUSTRIAL
1,587
4T11
4Q11
1,795
4T12
4Q12
COMMERCIAL
CAPTIVE
851
769
+13.5%
+1.3%
FREE
+4.9%
5,114
4,904
905
46
949
47
860
903
4T11
4Q11
4T12
4Q12
OTHERS
4T11
4Q11
4T12
4Q12
TOTAL
Total Market
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET – YEAR
+2.0%
-3.2%
22,932
23,384
3,056
3,330
+9.1%
8,418
8,149
-0.5%
3,944
2011
2011
2012
2012
RESIDENTIAL
6,967
657
7,599
743
3,925
2,213
2,396
1,731
1,528
2011
2011
2012
2012
INDUSTRIAL
6,310
2011
2011
6,856
2012
2012
COMMERCIAL
CAPTIVE
FREE
+3.0%
19.877
3,603
3,712
185
191
3,417
3,521
2011
2011
2012
2012
OTHERS
20.054
2011
2011
TOTAL
2012
2012
Collection
COLLECTION RATE
12 MONTHS
COLLECTION RATE BY SEGMENT
YEAR
97.4% 98.0%
94.3% 96.4%
Total
Total
Varejo
Retail
2011
2011
101.0% 98.8%
102.6% 102.5%
97.4%
98.0%
Grandes
Clientes
Large Clients
Poder
PublicPúblico
Sector
Dec/11
dez-11
Dec/12
dez-12
2012
2012
Loss Prevention
ENERGY RECOVERY
GWh
LOSS (12 MONTHS)
-26.0%
45.4%
40.4%
41.2%
42.2%
169.3
43.1%
33.3%
7,582
7,665
7,838
8,047
5,247
5,316
5,457
5,615
8,536
125.2
Reflets the change on
treatment's criteria in
the approach to long
term
delinquent
customers, based on
Aneel Resolution 414.
6,007
2011
2011
2012
2012
INCORPORATION
GWh
2,335
Dec/11
dez /11
2,349
Mar/12
mar/ 12
2,381
Jun/12
jun/ 12
2,432
Sep/12
s et /12
2,529
Dec/12
dez /12
Non-technical losses GWh
Technical losses GWh
% Non-technical
losses/ LV Market
% Non-technical losses /
LV Market - Regulatory
+12.5%
140.4
2011
2011
157.9
2012
2012
Net Revenue
NET REVENUE BY SEGMENT (2012)*
Commercialization
NET REVENUE (R$MN)
4.1%
Generation
+9.6%
6.3%
7,613.1
6,944.8
Distribution
89.6%**
669.3
794.7
* Eliminations not considered
** Construction revenue not considered
+19.2
12.9%
2,162.9
1,815.1
199.3
237.8
24.5%
1,577.3
1,963.6
4Q11
4T11
4Q12
4T12
6,150.1
6,943.8
NET REVENUE FROM DISTRIBUTION (2012)
Network Use (TUSD)
2011
2011
Construction Revenue
Revenue w/out construction
revenue
2012
2012
(Free + Concessionaires)
9.4%
Residential 41.1%
Others (Captive)
12.6%
Industrial 6.8%
Commercial 30.1%
Não is;
e
nc iáv
ge r e ; 82,57%
8,5
1.32
Operating Costs and Expenses
DISTRIBUTION MANAGEABLE COSTS (R$MN)
COSTS (R$MN)*
4Q12
-12.4%
4T12
1,258.9
Non manageable
(distribution): R$ 1,328.5
(82.6%)
1,103.4
-46.7%
279.7
149.1
Generation and
Commercialization: R$ 131.3
(8.2%)
(9.3%)
ç ão e
Ge r a lizaç ão
e r c ia
Com ,3; 8,16%
; 131
* Eliminations not considered
** Construction revenue not considered
4Q11
4T11
e is;
nc iáv
Ge r e ; 9 ,2 7 %
1
149,
Manageable
(distribution): R$ 149.1
R$ MN
4Q12
4T12
2011
2011
2012
2012
4Q11
4Q12
Var.
2011
2012
Var.
PMSO
149.6
176.0
17.6%
646.8
692.0
7.0%
Provisions
56,8
250.2
340.8%
299.4
473.1
58.0%
PCLD
35.3
109.4
210.2%
251.3
282.6
12.5%
Contingencies
21.5
140.8
554.9%
48.1
190.5
296.0%
Depreciation
72.3
80.4
11.1%
306.8
293.3
-4.4%
Other operational/
revenues expenses
1.0
(357.5)
-
6.0
(355.0)
-
279.7
149.1
-46.7%
1,258.9
1,103.4
-12.4%
Total
EBITDA
CONSOLIDATED EBITDA (R$MN)
D
1.1 istrib
2 7 u iç
,4;
ã
75 o ;
,59
%
EBITDA BY SEGMENT*
2012
+17.7%
1,456.2
Distribution 75,2%
(EBITDA Margin: 17,4%)
1,237.8
Ge
raç
ã
2 2 o; 3 3
,55 6,4
%
;
+49.5%
483.9
323.6
Commercialization 1,9%
(EBITDA Margin: 9,5%)
4T11
4Q11
4T12
4Q12
2011
2011
2012
2012
Generation 23,0%
(EBITDA Margin: 76,4%)
Co
me
r
*Eliminations not considered 2 7 , c iali
8;
z
1,8 aç ão
6% ;
EBITDA
EBITDA – 4Q11 / 4Q12
(R$ MN)
+ 73.4%
+ 49.5%
386
366
133
617
484
356
32
324
(194)
(356)
EBITDA
Ativos e
Ajustado Passivos
2T11
Adjusted Regulatórios
Regulatory
EBITDA
Assets and
4Q11
Liabilities
EBITDA 2T11
EBITDA
4Q11
Receita
Líquida
(41)
Custos Não
Custos
Provisões
EBITDA Ativos e
EBITDA
Gerenciáveis Gerenciáveis
2T12
Passivos
Ajustado (PMSO) Other
2T12
Net
NonManagable
Provisions EBITDARegulatórios
Regulatory Adjusted
operational/
Revenue Managable Costs (PMSO)
4Q12
Assets and
EBITDA
revenues
Costs
Liabilities
4Q12
EBITDA
EBITDA – 2011 / 2012
(R$ MN)
+ 34.5%
+ 17.7%
794
325
381
1,325
87
2011
Liabilities
1,456
1,238
(706)
EBITDA
Ativos e
Ajustado Passivos
2T11
Adjusted Regulatórios
Regulatory
EBITDA
Assets and
1,782
EBITDA 2T11
EBITDA
2011
Receita
Líquida
(175)
(75)
Custos Não
Custos
Provisões
EBITDA Ativos e
EBITDA
Gerenciáveis Gerenciáveis
2T12
Passivos
Ajustado (PMSO) Other
2T12
Net
NonManagable
Provisions EBITDARegulatórios
Regulatory Adjusted
Revenue Managable Costs (PMSO) operational/
2012
Assets and
EBITDA
revenues
Costs
Liabilities
2012
Net Income
ADJUESTED NET INCOME
Lucro
Líquido
e Lucro
Líquido Ajustado
4Q11
/ 4Q12
(R$ MN)
4T11/4T12 - R$ Milhões
+ 61.8%
+ 21.3%
160
88
153
21
(53)
160
132
(68)
EBITDA
Ativos e
EBITDA LL Ajustado
Ativos e
4T11
Ajustado
-Net Passivos
2T11
Adjusted
Regulatory
4Q11
4T11
passivos
2T11
Income Regulatórios
Assets and
4Q11
Regulatórios
Liabilities
248
Receita
Custos Não
Custos
EBITDA Gerenciáveis
Resultado Gerenciáveis
Impostos
Líquida
EBITDA
Financial
Taxes
Financeiro
(PMSO)
Result
(11)
Provisões
Outros
Others
EBITDA 4T12
2T12
4Q12
Ativos e
EBITDA
Ativos e
LL Ajustado
Passivos
Ajustado
Regulatory Adjusted-Net
passivos
4T12
Regulatórios
2T12
Assets and
Regulatórios
Liabilities
Income
4Q12
Net Income
ADJUESTED NET INCOME
2011 / 2012 (R$ MN)
Lucro Líquido e Lucro Líquido Ajustado
2011/2012 - R$ Milhões
+ 59.9%
+ 24.0%
215
218
399
58
6
342
EBITDA
Ativos e
EBITDA Ajustado Passivos
2T11
LL AjustadoRegulatórios
Ativos e
2011
2T11 Net
Adjusted
Regulatory
2011
- 2011
Income
2011
passivos
Assets and
Regulatórios
Liabilities
(85)
Receita
Líquida
424
(57)
Custos Não
Custos
Gerenciáveis Gerenciáveis
EBITDA
Resultado (PMSO)
Impostos
EBITDA
Financial
Taxes
Financeiro
Result
639
Provisões
Outros
Others
EBITDA 2T12
2012
2012
Ativos e
EBITDA
Passivos
Ajustado Ativos e
LL 2T12
Ajustado
Regulatórios
Regulatory
Adjusted
passivos
- 2012 Net
Assets and
Regulatórios
Liabilities
Income
2012
Dividends
8.2%
9.9%
4.2%
8.1%
100%
76.3%
351
203
Payout
2009
2010
5.4%
2.4%
351
257
50%
2008
363
3.3%
86.5%
81.0%
203
2007
3.4%
432
351
100.0%
6.1%
1.7%
408
100%
8.1%
2011
Minimum Dividend Policy
2012
408
187
432
205
363
351
187
182
87
182
170
87
92
118
92
1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13
Dividends
Interest on Equity
Dividend Yeld*
*Based on the closing price the day before the announcement.
9
Indebtedness
Real of R$ 375 million in October reduced the cost of debt and extended the amortization schedule
TheCpre
ustopayment
AMORTIZATION SCHEDULE* (R$ MN)
NET DEBT
1,796
Average Term: 4,2 years
3,383.2
4,273.1
671
481
2.9
2010
2.7
2009
Dec/11
set/12
9M09
3T10
Dec/12
dez/12
Custo
Nominal
9.84%
2011
2014
2014
2013
2013
R ea l
Custo9M10
Net Debt / EBITDA
2010
886
784
* Principal only
COST OF
DEBT
2012
11.08%
Custo Real
2015
2015
2016
2016
After
Após 2017
2017
Others
2.0%
2011
11.03%
TJLP
25.1%
8.21%
5.30%
2009
2009
2007
4.87%
4.25%
2010
2011
2011
2009
2010
2008
Nominal Cost
Custo Nominal
2009
US$/Euro
0.8%
2.24%
CDI/Selic
72.1%
2012
2012
set/10
Real Cost
Custo Real
2010
2011
*ConsideringHedge
2012
Investments
CAPEX BREAKDOWN
(R$ MN)
2012
CAPEX (R$ MN)
Co m
b te
a
Pe r d às
a
$ 19 s
9 ,8
Losses
Combat
199.8
453.8
446.9
2008
2008
2008
2009
2009
2009
181.8
774.8
518.8
2010
2010
2010
2011
2011
2011
694.1
2012
2012
9M11
Investments in Electric Assets (Distribution)
Develop. of
Distribution
System
215.7
9M12
Others
206.8
Commerc./
Energy Eficiency
26.1
Novo
sp
de g r oje tos
e r aç
$ 1,9 ão
116.9
Generation
Projects
1.9
Generation
Maintenance
23.7
Man
ute n
ç
ge r a ão de
çã
$ 23 o
,7
92.9
102.7
Co m
erci
/Efic alizaç ão
iê
Ene r nc ia
gé ti
$ 26 ca
,1
563.8
796.8
utr o
s
0 6,8
546.7
153.8
De se
nv
Siste olv. do
m
Distr a de
ibuiç
$ 21 ão
5 ,7
700.6
Quality
Improvement
122.7
r ia d
a
ade
,7
928.6
Regulatory Framework
 The Provisional Measure 579 was enacted on September 11, 2012 and thereafter converted into Law 12,783 providing for
electric power concessions, reduction of sector charges and reasonable tariffs which although these have not directly
affected Light, as its concessions will expire only in 2026, resulted in the following developments:
 on January 24, 2013, Resolution issued by Aneel approved an average reduction of 19.63% in Light SESA’s tariffs.
For residential consumers (low voltage), the reduction was 18.10%. The measure will have no impact on the
company’s result or cash flow since it reflects an equal reduction in costs.
 on the same date, the distribution of power plants energy quotas was ratified, which had their concession renewed:
 (i) but lower to the distribution companies’ contracting needs, thus, causing an involuntary exposure, and only
for Light it accounted for average 156 MW; and
 (ii) made distribution companies to start sharing the hydrological risks, which before was only supported by
generation companies
 As of October 2012, an adverse hydrological situation was characterized in Brazil’s electricity sector, the basis of which is
mainly hydric, enforcing the System National Operator to dispatch all the thermal power plants available in the system,
thus significantly rising the costs of distribution companies by increasing fuel expenditures in availability agreements,
increasing System Service Charges due to energy security and acquisitions on the spot market in order to answer that
involuntary exposure.
Regulatory Framework
 On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of non-manageable costs
related to thermal plant dispatch, involuntary exposure and hydrological risk not covered by the 2013 tariff, as follows:
 Eletrobrás will transfer the resources of Energetic Development Accout (CDE) directly to the concessionaires on the
same dates and to the same accounts as the respective monthly transfers of the Electricity Trading Chamber
(CCEE) financial guarantees.
 Aneel will publish the monthly dispatches with the amounts to be transferred by Eletrobrás via the CDE (energy
development account).
 System Service Charge (ESS) – The monthly transfer will be determined by the difference between the
amounts settled in the CCEE and the tariff coverage defined in the last adjustment.
 Involuntary Exposure associated with the quotas – The monthly CDE transfer will cover the difference
between the difference settlement price (PLD) and the acquisition tariff of the repositioning amount
recognized in Light’s last tariff adjustment.
 Hydrological Risk - The net monthly amount settled in the CCEE will be transferred directly via the CDE.
 The remaining energy purchase and ESS costs not covered by the decree, including fuel costs of availability contracts not
included on tariffs, will continue going towards the formation of the regulatory assets and liabilities (CVA) to be determined
in Light’s November/13 Tariff Revision.
 The Public Hearing opened for regulating decree proposes a transfer rate until 3% of the balance of CVA, the rest will be
payed "in cash" from CDE funds.
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
IR Manager
+ 55 21 2211 2560
gustavo.souza@light.com.br
www.light.com.br/ri