8/9/2019 Presentation ? 4Q14 Results
1/21
Conference Call
4rd Quarter 2014
8/9/2019 Presentation ? 4Q14 Results
2/21
FINANCIAL
OPERATING
Highlights Energy consumption in the distribution company grew by 3.0% between 2014 and 2013;
Non-technical losses (12 months) stood at 40.9%, 0.4 p.p. down quarter-over-quarter with a drop of 1.3 p.p. year-over-year;
Collection fee reached 98.6% in 2014;
Allowance for doubtful accounts (PCLD) of 1.3% of revenue from energy billing in 2014, compared to 1.8% in 2013;
DEC and FEC (12 months) improved by 33% and 21%, respectively over Dec/2013;
Net revenue, excluding construction revenue, grew by 25.6% year-over-year, totaling R$8,289.9 million; net
revenue, excluding construction revenue and CVA (compensation of Portion A variation) would total R$7,270.0
million in 2014, 10.1% up on 2013;
Consolidated EBITDA in 2014 of R$1,809.7 million, 6.7% up on 2013. Adjusted by CVA balance and equity
accounting, EBITDA would total R$1,332.4 million in 2014, a 14.1% decrease in relation to EBITDA in 2013 of
R$1,551.1 million (adjusted by CVA and VNR – new replacement value);
Net income of R$662.8 million in 2014, 12.9% up on 2013. Adjusted by CVA balance and equity income gain, the
net income would total R$299.1 million in 2014, a 39.1% decrease compared to the net income in 2013 of R$491.1
million (adjusted by CVA and VNR);
Consolidated net debt of R$6,076.5 million, 4.7% up on 3Q14;
REGULATORY
Extraordinary tariff review of Light SESA had an average increase of 22.48% as of March 2, 2015;
Increase in flags tariff. The red flag will increase from R$30.00 to R$55.00/MWh and the yellow flag from R$15.00 to
R$25.00/MWh;
2
Recognition of CVA balance, in the amount of R$1,019.8 million, which now is recorded under net revenue as of
December 2014;
R$143.2 million gain on equity income due to Light Energia’s dilution of interest in Renova, from 21.9% to 15.9%.ACCOUNTING
8/9/2019 Presentation ? 4Q14 Results
3/21
8/9/2019 Presentation ? 4Q14 Results
4/21
Energy ConsumptionDistribution – 2014
TOTAL MARKET (GWh) ¹
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.
2011
26,493
20142013
3.0%
2012
+4.9%
25,71723,38422,932
24.1ºC
24.7ºC
4.7ºC
23.9ºC
8/9/2019 Presentation ? 4Q14 Results
5/21
TOTAL MARKETElectricity consumption (GWh)
Total market – Quarter
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL
1.348
1.241
5
972959
53
4Q13
961
912
49
4Q14
2,153
1,938
216
4Q13
2,031
1,815
5,453
4Q14
1,326
354
+2.5%
+5.3%
+6.0%
4Q13
1,439
356
1,083
4Q14
2,203
2,203
-7.9%2,099
2,099
+4.9%
4Q14
6,694
1,241
216
4Q13
6,530
5,182
1,348
4Q14
1,012
4Q13
Free Captive
8/9/2019 Presentation ? 4Q14 Results
6/21
TOTAL MARKET
6
Electricity Consumption (GWh)
Total Market - Year
TOTAL
853
2014
5,296
1,396
3,900
2013
5,668
1,395
4,273
20142013
8,312
879
3,798
3,598
200
2014
8,328
7,449
8,950
+3.0%
+3.2%
+4.9%
-6.6%
7.7%
20142013
7,939
7,086
26,493
21,500
4,993
2013
25,717
20,391
5,326
2014
3,919
3,705
214
2013
CaptiveFree
RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS
8/9/2019 Presentation ? 4Q14 Results
7/21
8/9/2019 Presentation ? 4Q14 Results
8/218
-21.1%
-33.4%
FEC
6.56
8.31
DEC
12.25
18.40
20142013
Operating Quality Indicators
DEC e FEC - 12 MONTHS
(WITH PURGE)
INDICATOR RegulatoryTARGET 2014
Overall DEC 8.96
Overall FEC 6.84 -30.1%
2014
33.9
2013
48.6
Dic/Fic Compensation
* DIC – Individual Length of Interruption / FIC – Individual Frequency of Interruption
8/9/2019 Presentation ? 4Q14 Results
9/21
Loss Prevention
INSTALLED METERS
(Thousand Units)
LOSS (12 MONTHS)
40.9%
% Non-technical losses/ LV Market
41.3%
41.9%
- 1.3 p.p.
42.2%
42.4%
9
79
102
142+190
2014
480
2013
330
2012
272
2011
197
30
2010
1157
44.0%
dec-14
8,847
2,920
5,927
sep-14
8,754
2,850
5,904
jun-14
8,815
2,843
5,972
mar-14
8,748
2,793
5,955
dec-13
8,352
2,614
5,738
Tec. Losses GWhComercial Losses GWh
Out of Communities
Communities
AneelTARGET
august/15
39.92%
8/9/2019 Presentation ? 4Q14 Results
10/2110
37
26
13
2014
624
2013
416
2012
200
Number of Clients (Thousand Units)
Number of APZs
Losses Combat Actions - APZ ResultsUntil December, the program covered 624 thousand customers in 37 APZs,
of which 26 had the results calculated:
APZ EVOLUTION
dec-14
20.0
sep-14
20.3
jun-14
16.4
mar-14
19.2
dec-13
22.2
sep-13
22.0
BEFORE
50.2%
dec-13
91.2
sep-13
93.9
BEFORE
89.20
dec-14
97.1
sep-14
98.2
jun-14
100.2
mar-14
95.5
APZ LOSSES
APZ COLLECTION
8/9/2019 Presentation ? 4Q14 Results
11/21
Losses Combat Actions - APZ Results
11
• 11 APZ's under phase of implementation and still without recorded results, totaling155,000 customers.
Before Current Before Current
Curicica 2010 13.505 38% 10% 95% 98% N
Realengo/Batan 2010/2013 20.474 38% 10% 94% 97% N/Y
Cosmos 1 2012 22.271 49% 14% 92% 97% N
Cosmos 2 2012 20.422 46% 13% 92% 105% N
Sepetiba 2012 21.172 57% 31% 88% 96% N
Caxias 1 e 2 2012 14.579 59% 34% 83% 93% N
Belford Roxo 1 e 2 2013 22.089 63% 24% 88% 95% N
Vigário Geral 2012 18.142 35% 12% 94% 99% N
Caxias 3 2013 17.762 43% 16% 96% 96% N
Nova Iguaçu 1 2013 20.456 49% 27% 90% 97% NNova Iguaçu 2 2013 22.335 46% 19% 88% 98% N
Nilópolis 2013 10.882 42% 27% 90% 96% N
Mesquita + Nilópolis Convencional 2010 20.119 51% 16% 84% 98% N
Ricardo de Albuquerque 2013 26.224 35% 11% 94% 96% N
Cabritos/Tabajaras/Chapéu
Mangueira/Babilônia/Santa Marta2012 8.517 68% 32% 62% 97% Y
Coelho da Rocha 2013 18.913 41% 11% 92% 99% N
Caxias 4 2013 19.984 42% 14% 90% 99% N
Alemão 2014 13.062 63% 31% 91% 93% Y
Cidade de Deus 2011 20.585 52% 31% 84% 91% Y
Tomazinho 2013 12.787 43% 16% 87% 96% N
Formiga/Borel/Macaco/Salgueiro/Andaraí 2012 18.216 51% 26% 50% 91% YMonte Líbano 2013 11.506 36% 15% 92% 97% N
Caxias 5 2014 22.298 49% 30% 94% 92% N
Cordovil 2014 12.735 28% 15% 93% 96% N
Éden 2014 18.007 55% 14% 86% 96% N
Nova Iguaçu 3 2014 22.243 49% 30% 89% 96% N
Total 469.285 50% 20% 90% 97%
UPP Area
* Reflects the accumulated results until Dec/14, since the beggining of the implementation of each APZ
Subtitl e: N = No / Y = Yes
Ne ighborhood Imple mentati on Y ear Number of
clients
Non-Technical Losses /
Grid Load* Collection Rate
8/9/2019 Presentation ? 4Q14 Results
12/21
Net Revenue
12
2013
6,602
820
4Q14
3,295
306
4Q13
2,066
1,701
365
1,969
24.4%
9,230
10.1%7,422
15.7%
+59.5%
2014
7,270
1,020
941
1,020
Revenue w/out construction and CVA
Booking of CVA
Construction Revenue
Generation
6.8%
Distribution
83.0%**
NET REVENUE BY SEGMENT (2014)*
Commercialization and
service
10.2%
R$ MN
128
NET REVENUE (R$MN)
* Eliminations not considered
** Construction revenue not considered
8/9/2019 Presentation ? 4Q14 Results
13/21
Operating Costs and Expenses
* Eliminations not considered
** Construction revenue not considered
DISTRIBUTION PMSO COSTS (R$MN)
R$ MN 4Q13 4Q14 Var. 2013 2014 Var.
PMSO (214.1) (191.2) -10.7% (782.9) (761.4) -2.7%
Provisions (57.2) (83.8) 46.5% (210.0) (213.3) 1.5%
PCLD (43.3) (33.8) -22.1% (157.9) (125.0) -20.8%
Contingencies (13.9) (50.0) 260.6% (52.1) (88.3) 69.4%
Depreciation (84.7) (93.5) 10.4% (335.2) (356.6) 6.4%
Other operational/revenues expenses
102.2 (24.0) - 87.3 (40.7) -
Total (253.8) (392.6) 54.7% (1,240.8) (1,372.0) 10.6%
Manageable(distribution):
(18.2%)
Non manageable(distribution**):
(66.9%)
Generation andCommercialization:
(14.9%)
COSTS (R$MN)*
2014
5,052
1,372
1,123
13
761783
191214
-2.7%
-10.7%
201420134Q144Q13
8/9/2019 Presentation ? 4Q14 Results
14/21
RTE e FLAGS TARIFF
14
COLOR OF FLAGLast Value(Per MWh)
New Value(Per MWh)
GREEN - -
YELLOW R$ 15.00 R$ 25.00RED R$ 30.00 R$ 55.00
RTE (extraordinary tariff review) of Light SESA with an average increase of 22.48% as of March
2, 2015. Low-tension consumer will perceive a 21.06% increase;
6.37
P&D
0.22
CDE Energy
3.47
CDE Tusd
14.54
Tariff
Readjustment
22.48
CCEARs
2.12
Itaipu
Voltage Level (Consumption segment)
AverageIncrease
A2 25.14% A3a 27.30% A4 26.07% AS 20.91% B1 (Residential) 21.06%
B2 (Rural) 21.05%
B3 (Commercial/Industrial) 21.05%
B4 (Il. Public) 21.05% High Voltage 25.68%
Low Voltage 21.06%
Average Readjustment 22.48%
ANEEL increased flags tariff as of March 2, 2015.
8/9/2019 Presentation ? 4Q14 Results
15/21
8/9/2019 Presentation ? 4Q14 Results
16/21
EBITDA
EBITDA e Adjusted EBITDA2013 / 2014 – (R$ MN)
16
334
Non-
Manageable
Costs
-1,600
Net
Revenue
1.688
1,020
CVA
Adjusted
EBITDA
2014
EBITDA
2013
1,697
VNR
125
Regulatory
Assets and
Liabilities
21
Adjusted
EBITDA
2013
1,551
-14.1%
6.6%
1,332
Renova
Equity
Pikup
143
Regulatory
Assets and
Liabilities
EBITDA
2014
1,810
Equity
Pikup
140
668
Provisions
-5
Other
Operational
Revenues
-130
Manageable
Costs
(PMSO)
20
8/9/2019 Presentation ? 4Q14 Results
17/21
Net Income2014
ADJUSTED NET INCOME
2013 / 2014 (R$ MN)
221
-6
EBITDA
113
Net Income
2013
587
143
299
Renova
Equity
Pikup
-39.1%
+12.9%
Adjusted
Net Income
2014
491
VNR
82
-24
14
Adjusted
Net Income
2013
-8
Financial
Result
Taxes Depreciation
663
Net Income
2014
Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
17
8/9/2019 Presentation ? 4Q14 Results
18/21
Indebtedness
Average Term: 4.4 years
NET DEBT
* Just principal
18
424
188
504
794779
501
2015 After 202220222021202020192018
1,301
2017
1,002
2016
1,016
dec/14
6,077
sep/14
5,544
dec/13
5,250
3.39
2.84
3.70
Nominal Cost Real Cost
COST OF DEBT
2012
011
2014
2.24%
8.21%
4.46%
11.31%
4.25%
11.03%
2013
9.68%
3.55%
* ConsideringHedge
TJLP
14.2%
CDI
69.0%
IPCA
9.9%
Others
6.4%
U /Euro *
0.5%
Loan of R$ 2 Billion in 2014 for investments and working capital needs
AMORTIZATION SCHEDULE* (R$ MN)
Net Debt / EBITDA
8/9/2019 Presentation ? 4Q14 Results
19/21
Investments
19
182
154103
132
202 122
746
1,054
2014 Actual
187
2014 Budget
1,055
698
155
2013
845
713
2012
797
694
2011
929
775
2010
701
519
Investments in Electric Assets (Distribution)
Others Investiments
Special Obligations - Losses
CAPEX BREAKDOWN (R MN)
2014
Generation49.2Administration
57.0
Other23.4
Develop. ofDistribution
System548.9
LossesCombat
359.7
Commerc./Energy
Eficiency15.8
CAPEX (R MN)
8/9/2019 Presentation ? 4Q14 Results
20/21
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
8/9/2019 Presentation ? 4Q14 Results
21/21
Contacts
João Batista Zolini CarneiroCFO and IRO
Gustavo WerneckSuperintendent of Finance and Investor Relations
+55 21 2211 [email protected]
Mariana da Silva Rocha
IR Manager+ 55 21 2211 [email protected]
ri.light.com.br www.facebook.com/lightri twitter.com/LightRI
21
Top Related