Light S.a. · BMFBOVESPA:LIGT3
Light — Investor Presentation (February 2016)
33 slides from Light's investor presentation, February 2016
Slide 1: Corporate Presentation
ye * e 8 ae mw iAa.e + 4h 2 rgt ee ieee CORPORATE = PRESENTATION
Slide 2: Light Holdings
Light Holdings Diversified structure which is comprised of the Distribution, Generation and Commercialization segments 2
Slide 3: Light in numbers
Light in numbers Concession DISTRIBUTION RJ State Area % Population¹ 16 MN 11 MN 68% Área¹ 44,000Km² 11,000 Km² 25% GDP¹ R$ 407 BN R$ 207 BN 51% Consumers 7 MN 4 MN 57% Municipalities 1 IBGE (2010) 92 31 34% 1 IBGE (2010) Generation 8 1 4 Amazônia Energia 2 Renova 5 6 3 Guanhães Energia 6 Complexo d
Slide 4: Rankings
Rankings Among the largest players in Brazil INTEGRATED¹ ELECTRICITY DISTRIBUTION² Net Revenues 2014* – R$ Billion Energy Consumption in Concession Area** (GWh) - 2014 37,767 18.6 37,874 16.4 25,777 12.6 12.2 26,934 22,926 10.6 22,791 21,783 22,321 21,500 20,391 8.6 8.3 15,634 16,348 POWER GENERATIO
Slide 5: Shareholder Structure
Shareholder Structure Efficient combination of solid industry and financial players • 11 Board members: 8 from the controlling group, 2 independents e 1 employees nominated • A qualifying quorum of 7 members to approve relevant proposals such as: M&A and dividend policy Number of shares 203,934,060
Slide 6: Corporate Governance
Corporate Governance Decision process assures transparency and value creation LGSXY ADR-OTC 6
Slide 7: Total Market - Quarter
TOTAL MARKET Electricity consumption (GWh) Total market – Quarter -3.0% 6,694 6,495 1,241 1,211 -3.1% 1.241 1.348 -3.7% -1.8% 2,203 2,153 5,453 5,284 2,121 2,115 -6.2% +0.4% 216 219 1,326 1,243 1,012 1,016 2,203 2,121 1,938 1,895 53 53 972 938 959 963 354 305 4Q14 4Q15 4Q14 4Q15 4Q14 4Q15 4Q14 4Q15
Slide 8: Total Market - Year
TOTAL MARKET Electricity consumption (GWh) Total market – Year -0.2% 26,493 26,446 4,993 5,085 -0.6% 1.241 1.348 -1.9% +1.6% 8,950 8,778 8,457 21,500 21,361 8,328 -0.9% +1.0% 879 890 5,296 5,251 3,919 3,961 8,950 8,778 7,449 7,567 214 218 3,900 3,976 3,705 3,743 1,396 1,274 2014 2015 2014 2015 2014
Slide 9: Losses and Collection
Losses and Collection LOSS (12 MONTHS) COLLECTION RATE BY SEGMENT - 1.5 p.p. Year 41.31% 40.87% 39.88% 39.63% 39.80% 8,754 8,847 8,701 8,699 97.8% 101.2% 101.5% 105.7% 8,622 100.6% 98.6% 99.2% 98.4% 94.7% 96.1% 96.5% 82.3% 5,904 5,927 5,818 5,753 5,798 2,850 2,920 2,883 2,869 2,901 sep/14 dec/14 mar
Slide 10: Non technical losses of Light
Non technical losses of Light Map of losses in Concession Area VALE DO PARAÍBA BAIXADA LESTE OESTE LITORÂNEA September/2015 Light Vale Litorânea Leste Oeste Baixada Clients (quantity) 4,285,822 444,436 846,662 882,173 1,022,146 1,090,405 Low Voltage Market Billing (GWh) 14,567 1,284 5,089 2,719 2,81
Slide 11: Regulatory Allowance for Non-Technical Losses
Regulatory Allowance for Non-Technical Losses Higher recognition of losses linked to targets achievement Additional revenues to be invested in losses combat 40,41% and booked39,92% as 40,41% 40,41% Special 40,41% Obligations 40,41% 40,41% 40,41% 39,92% (ex-RAB) 39,92% 39,92% 40,41% 40,41% 39,92% 39,
Slide 12: Light: Tariff Readjustments
Light: Tariff Readjustments 27% 6% 19% 17% 12% 8% 21% 4% Set/15 Nov/12 Jan/13 Nov/13 Nov/14 Jan/15 Mar/15 Nov/15 -2% -20% Annual Tariff Law 12.783 3rd Cycle Annual Tariff Tariff Flags New Flag Flag reduction Annual Tariff Readjustment Tariff Review Readjustment + ETR Readjustment *ETR: Extraordinary
Slide 13: Generation
Generation
Slide 14: Brazil Energy Matrix
Brazil Energy Matrix Variety of energy sources available for energy production 1.41% 4.35% Hydro Over 70% of Brazil’s electricity is 0.01% Thermal provided by renewable sources 28.57% Nuclear Wind Integrating hydro and thermal 65.65% Solar GSF – Generation Scaling factor 100 98.3%98.7% 95.0% R
Slide 15: 855 MW Installed Capacity
855 MW Installed Capacity Concessions Expiring Only in 2026 100% 100% Paraiba do Sul River HPP Santa Branca HPP Ilha dos Pombos 187 MW 56 MW HPP Ilha dos RJ Pombos SP HPP Santa Branca 100% 100% 100% HPP Fontes Nova Underground HPP HPP Pereira Passos 132 MW Nilo Peçanha - 380 MW 100 MW Occupational h
Slide 16: Assured Energy: 549 MWaverage
Assured Energy: 549 MWaverage Energy commercialization focused on the free market Available Energy 10% 549 549 549 549 549 549 549 28 28 11 28 28 28 28 28 28 15 112 211 265 265 510 480 434 461 493 506 510 418 317 242 232 409 310 256 256 2016 2017 2018 2019 2020 2021 2022 Hedge Available Energy Contr
Slide 17: GSF Proposal
GSF Proposal Free Market – Aneel Resolution n. 684/2015 Extension granted Negative result converted into extension Rights and obligations ER by Risk Premium of R $ 2.10 / MWh Rights and for each 1% of PR (R $ 10.50 / MWh - 5%) obligations ER CONER’s result on the amount of Energy ER incremental, Par
Slide 18: Power Generation Expansion
Power Generation Expansion Renewable energy generation projects, mainly through partnerships Installed Capacity Assured Energy Project Operational Start Stake (MW) (MW average) Paracambi 25 20 2012 51% 653 (in operation) 269.5 (in operation) 2008 - 2016 Renova 15.87% 2,008 (contracted) 814.5 (contra
Slide 19: Power Generation Expansion
Power Generation Expansion INSTALLED CAPACITY (MW) LIGHT'S STAKE +11% +2% 54.5% 1,566 1,598 +14% 77 77 17 17 +6% 1,413 +6% 77 280 +7% 1,234 17 265 1,168 17 22 1,104 219 22 17 173 1,035 17 128 22 82 22 318 335 22 45 17 22 22 210 82 115 134 154 13 13 13 13 13 13 13 855 855 855 855 855 855 855 1H16 2H1
Slide 20: Results
RESULTS
Slide 21: Financial Highlights
Financial Highlights R$ mn 2014 3Q14 3Q15 Key Figures Set-15 Net Revenue* 8,289 1,577 2,152 Net Income LTM (R$ mn) 520 EBITDA 1,810 191 407 Shares Outstanding (mn) 204 EBITDA Margin 21.8% 12.1% 18.9% EPS (R$) 2.5 Net Income 663 (53) 38 P/E** 4.5 Net Margin 8.0% - 1.5% Market Cap (R$ mn) ** 2,355 Sha
Slide 22: Net Revenue
Net Revenue NET REVENUE (R$MN) NET REVENUE BY SEGMENT 9M15* R$ MN +36.2% 8,065 Distribution +39.2% 87.1%** 707 5,922 634 Generation +34.3% 5.2% +36.5% 7,358 2,462 1,834 5,287 310 257 Commercialization and 2,152 service 1,577 7.7% 3Q14 3Q15 9M14 9M15 Construction Revenue * Eliminations not considered
Slide 23: Operating Costs and Expenses
Operating Costs and Expenses COSTS (R$MN)* DISTRIBUTION PMSO COSTS (R$MN) 3Q15 +6.8% Non manageable 609 (distribution**): 570 (67.9%) +5.0% 182 191 Manageable (distribution): (19.3%) 3Q14 3Q15 9M14 9M15 Generation and R$ MM 3Q15 3Q14 Var. 9M15 9M14 Var. Commercialization: (12.8%) PMSO (190.6) (181.6
Slide 24: EBITDA by segment
EBITDA by segment (R$ MN) ADJUSTED EBITDA - BY SEGMENT Consolidated EBITDA 3Q15 3Q14 9M15 9M14 (R$ MN) 20.9% Distribution 253 145 666 500 1,030 EBITDA Margin (%) 13.0% 10.7% 10.0% 11.0% 852 Generation 132 25 293 295 36% EBITDA Margin (%) 104.9% 19.8% 67.1% 64.4% 42% 112.7% Commercialization 26 24 85
Slide 25: EBITDA
EBITDA 9M14 / 9M15 (R$ MN) +1.0% -1,852 2,056 -10 -27 -24 27 169 1,020 1,030 851 Adjusted Regulatory EBITDA 9M14 Net Revenue Non- Manageable Other Provisions Equity Pickup EBITDA 9M15 EBITDA 9M14 Assets and Manageable Costs (PMSO) Operational Liabilities Costs Revenues 25
Slide 26: Net Income
Net Income 9M14 / 9M15 (R$ MN) -57.1% 178 -209 111 254 30 -34 143 109 Adjusted Net Regulatory Net Income EBITDA Financial Result Taxes Depreciation Net Income Income 9M14 Assets and 9M14 9M15 Liabilities 26
Slide 27: Dividends
Dividends Average payout of 75% in the last 5 years 16.2 12.4 11.6 11.3 9.5 8.7 4.9 5.8 100 100 100 87 85 81 76 87 795 87 554 595 469 25 351 365 107 157 92 2008 2009 2010 2011 2012 2013 2014 2015 2007 2008 2009 2010 2011 2012 2013 2014 JCP Dividends Dividend Yeld* Payout *Based on the closing price
Slide 28: Indebtedness
Indebtedness DEBT INDICES AMORTIZATION SCHEDULE* (R$ MN) Others Average Term: 3.7 years U$/Euro * 6.2% IPCA 1,462 0.8% 10.3% 1,308 1,085 TJLP 11.0% 825 819 523 460 239 205 CDI 2015 2016 2017 2018 2019 2020 2021 2022 After 2022 71.7% * Just principal NET DEBT (R$MN) * Considering Hedge 7,318 6,879 CO
Slide 29: Covenants Negotiations
Covenants Negotiations In Nov/15, negotiations with creditors were concluded and the limits for the Net debt/EBITDA and EBITDA/interests coverage indicators were altered, including for September 30, 2015. There was not a breach of the indicators for this date. Cost of 0.45% of total gross debt +
Slide 30: Investments
Investments CAPEX BREAKDOWN (R$ MN) CAPEX (R$ MN) 9M15 Administration Generation Other 1,053 2.5 31.3 24.4 929 137 Commercial./ Energy 845 170 797 Efficiency 187 770 -2.7% 1.7 125 153 127 Develop. of 630 613 Distribution 54 57 System 240 120 291.9 156 758 729 672 692 403 455 400 Losses Combat 261.2
Slide 31: Why invest in Light?
Why invest in Light? Rio as a host of major events New contracts in 2015 Economic Energy Communities pacification Energy available for Transformation Commercializati Pro-business environment commercialization in the Investment projects hub on focused on Hedge of uncotracted energy to Conc
Slide 32: Disclaimer
Disclaimer This presentation may include forward-looking statements according to Brazilian regulations and international movable values. These statements are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions a
Slide 33: Contacts
Contacts Luiz Felipe Negreiros de Sá Head of Business Development and Investor Relations + 55 21 2211 7032 [email protected] Mariana da Silva Rocha Investor Relations Manager + 55 21 2211 2814 [email protected] http://ri.light.com.br/ [email protected] 33