Conference Call 3Q12 1.

Apresentação em tema: "Conference Call 3Q12 1."— Transcrição da apresentação:

1 Conference Call 3Q12 1

2 Highlights OPERATIONAL REGULATORY 2
Consumption grew 3.5% compared to 3Q11, mainly driven by the commercial segment with a consumption increase of 13.3%. Adjusting by the clients with long-term default the consumption increase was 4.7%; Collection rate (LTM) reached 98.3%,110 bps above the 97.2% of the same period last year; Non-technical losses reached 43.1% over the low-voltage market, due to the change in criteria of clients with long-term default; The quality indicators ELC and EFC (LTM), without purge, decreased from to and 8.39 to 7.92, respectively, YoY; Year to date, investments in distribution amounted R$ million, 5.0% below the same period of the previous year. REGULATORY On November 6, ANEEL approved the average adjustment of 10.77% in the tariffs, starting on November 7th of 2012; Average effect for captive clients of 12.27% and total effect on average tariff of 11.41%. EBITDA: Aumento no 2T10, decorrente do crescimento do consumo no mercado cativo e livre e pelos efeitos da revisão tarifária de 2009 (redução do EBITDA regulatório) Impacto da assinatura do aditivo: Deduções CVA Energia Total - 1S10: R$ 21,8 MM R$ 6,4 MM R$ 28,2 - 2T10 R$ 8,3 MM R$ 2,3 MM R$ 10,6 Lucro líquido: 2T10: -19,1% e 1S10: -24,5. 2

3 Highlights RESULTS CAPITAL STRUCTURE
10.6% increase in Net Revenue (without construction revenue) reaching R$ 1,577.7 million in 3Q12, highlighting the 103.4% increase in the net revenue of the trading company. Strong performance of the generation company, impacted by higher spot prices and higher sale in the Free Procurement Environment; R$ million EBITDA in 3Q12, 12.4% increase. Considering the effect of regulatory assets and liabilities, EBITDA would be R$ 388,2 million, 9.5% higher than 3Q11. Net Income of R$ 84.1 million in 3Q12 in contrast to a loss of R$ 1.6 million recorded in 3Q11. Considering the effect of regulatory assets and liabilities, net income would be R$ 162,5 million, 119.0% higher than 3Q11. CAPITAL STRUCTURE Year to date, cash generation totaled R$ million, in contrast to the negative variation of R$ 73.0 million for the same period last year; Cash flow position of R$ 1,176.7 million; Net debt of R$ 3,621.6 million, with net debt / EBITDA of 2.8x. EBITDA: Aumento no 2T10, decorrente do crescimento do consumo no mercado cativo e livre e pelos efeitos da revisão tarifária de 2009 (redução do EBITDA regulatório) Impacto da assinatura do aditivo: Deduções CVA Energia Total - 1S10: R$ 21,8 MM R$ 6,4 MM R$ 28,2 - 2T10 R$ 8,3 MM R$ 2,3 MM R$ 10,6 Lucro líquido: 2T10: -19,1% e 1S10: -24,5. 3

4 ELECTRICITY CONSUMPTION¹
Energy Consumption Distribution ELECTRICITY CONSUMPTION¹ TOTAL MARKET (GWh) +3.2% +3.5% 5,299 5,486 FREE 15% 5,144 4,989 OTHERS 15% INDUSTRIAL 7% 22.4ºC 22.1ºC 21.7ºC 21.7ºC RESIDENTIAL 33% COMMERCIAL 30% 3Q09 3Q10 3Q11 3Q12 1Note: 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. 4

5 ELECTRICITY CONSUMPTION (GWh)
Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER +3.5% 5,486 5,299 840 740 -4.3% +13.3% 1,882 1,801 1,807 1,595 4,645 +1.7% 180 +4.6% 4,559 155 968 984 854 894 1,627 45 47 614 1,440 541 810 847 427 370 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12 3Q11 3Q12 RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL CAPTIVE FREE 5 + 0,32º

6 COLLECTION RATE BY SEGMENT
QUARTER COLLECTION RATE 12 MONTHS 106.2% 102.2% 97.7% 97.8% 99.7% 99.8% 96.3% 93.0% 98.3% 97.2% Sep/11 Sep/12 TOTAL No 1S10 todos os segmentos apresentaram melhora na taxa de arrecadação, influenciada pela recuperação notada no 1T10, com destaque para o varejo, que elevou 6 p.p, sinal de recuperação dos efeitos da crise na arrecadação.No 2T10 a taxa de arrecadação ficou em 101,5% se comparado a 103,4% do 2T09. A taxa de arrecadação do varejo diminuiu de 102,1% para 98,9%. Essa diferença entre os períodos pode ser explicada pela maior concentração de arrecadação ocorrida em 2T09, decorrente da crise econômica que gerou atraso nos pagamentos das contas no início de 2009, destacando-se o varejo. RETAIL LARGE CLIENTS PUBLIC SECTOR 3Q11 3Q12 6 6 6

7 Loss Prevention LOSS (12 MONTHS) ENERGY RECOVERY GWh 43.1% 42.2% 134.3 -31.0% 41.2% 40.7% Reflets the change on treatment's criteria in the approach to long term delinquent customers, based on Aneel Resolution 414. 92.8 40.4% 33.8% 7,627 7,582 7,665 7,839 8,047 5,615 5,247 5,316 5,457 9M11 9M12 5,229 INCORPORATION GWh 2,328 2,335 2,349 2,381 2,432 +20.2% 90.3 Sep/11 Dec/11 Mar/11 Jun/11 Sep/12 75.1 Non-technical losses GWh Technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory 9M11 9M12 7 7 7

8 NET REVENUE BY SEGMENT (3Q12)* NET REVENUE FROM DISTRIBUTION (3Q12)
NET REVENUE (R$MN) Generation 6.8% Comercialization 5.3% Distribution 87.9%** +6.2% 5,450.2 5,129.7 470.0 +5.5% 556.9 * Eliminations not considered ** Construction revenue not considered 1,748.0 1,657.1 8.9% 170.3 4,980.2 NET REVENUE FROM DISTRIBUTION (3Q12) 230.6 4,572.8 10.6% 1,426.5 1,577.7 Others (Captive) 13.1% Network Use (TUSD) 10.3% (Free + Concessionaires) Industrial 7.6% 3Q11 3Q12 9M11 9M12 Construction Revenue Revenue w/out construction revenue Residential 38.9% Commercial 30.1% 8

9 DISTRIBUTION MANAGEABLE COSTS (R$MN)
Operating Costs and Expenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 3Q12 -2.3% 974.0 951.8 -4.0% Manageable (distribution): R$ 300.2 (21.0%) 312.5 300.2 Non manageable (distribution): R$ 1,003.1 (70.1%) 3Q11 3Q12 9M11 9M12 Generation and Commercialization: R$ 127.4 (8.9%) R$ MN 3Q11 3Q12 Var % 9M11 9M12 PMSO 149.0 178.5 19.8% 496.9 516.0 3.8% Provisions 83.0 52.3 -36.9% 242.6 222.9 -8.1% PCLD 72.2 39.3 -45,5% 216.0 173.2 -19.8% Contingencies 10.8 13.0 20,4% 26.6 49.7 87.1% Depreciation 80.6 69.3 -14.0% 234.5 212.9 -9.2% Total 312.5 300.2 -4.0% 974.0 951.8 -2.3% * Eliminations not considered 9

10 CONSOLIDATED EBITDA (R$MN)
EBITDA BY SEGMENT* 3Q12 +4.8% 915.5 959,1 Generation 29.5% (EBITDA Margin: 72.1%) Distribution 67.9% (EBITDA Margin: 12.9%) +12.4% 239.8 269.5 Commercialization 2.6% (EBITDA Margin: 8.1%) *Eliminations not considered 3Q11 3Q12 9M11 9M12 10

11 EBITDA +9.3% +12.5% EBITDA – 3Q11 / 3Q12 (R$ MN) 151 119 388 355 115
30 269 240 (110) (41) Adjusted EBITDA 3Q11 Regulatory Assets and Liabilities EBITDA3Q11 Net Revenue Non-Managable Costs Managable Costs (PMSO) Provisions EBITDA3Q12 Regulatory Assets and Liabilities Adjusted EBITDA 3Q12

12 Regulatory Assets and Liabilities Regulatory Assets and Liabilities
Net Income NET INCOME – 3Q11 / 3Q12 (R$ MN) +119.0% 78 162 -12.3% R$ 86 million Increase 24 84 74 76 27 4 30 (2) Adjusted Net Income 3Q11 Regulatory Assets and Liabilities 3Q11 EBITDA Financial Result Taxes Others 3Q12 Regulatory Assets and Liabilities Adjusted Net Income 3Q12 Redução de 19,1% no LL no 2T10, consequência do: (i) crescimento do EBITDA em função do desempenho dos mercados cativo e livre; (ii) reconhecimento neste trimestre da provisão, no montante de R$ 52,6 MM do imposto referente ao processo da LIR e da LOI que foi estornado do REFIS e o reconhecimento no montante de R$ 118,4 milhões de créditos fiscais ocorridos no 2T09; (iii) outras receitas operacionais no montante de R$ 10,8 milhões referente a alienação de terrenos (venda de um terreno na Estrada do Galeão e outro no Parque Eldorado. Além da indenização pela cessão da posse ao Governo Federal para construção de viaduto) e (iv) maior despesa financeira. 12

13 Indebtedness NET DEBT AMORTIZATION SCHEDULE* (R$ MN)
Average Term: 3.7 years 3,621.6 3,143.5 1,477 855 832 754 582 2.8 2.5 198 Sep/11 Sep/12 2012 2013 2014 2015 2016 After 2016 Net Debt / EBITDA * Principal only Others 2,0% COST OF DEBT CDI/Selic 74.2% TJLP 23.5% 9.84% 11.08% 11.01% 8.54% US$/Euro 0.4%* A dívida apresenta situação confortável, com alavancagem de 1,4x div líquida/EBITDA. A dívida líquida de R$ 1,8 bilhão com aumento de 18,5% em relação a março de Esse aumento é devido ao desemboldo do BNDES de R$ 121 MM (Distribuição) e R$ 10MM (Gerãção) O custo médio da dívida denominada em reais ficou em 10,9% a.a., 1,1 p.p. acima do custo médio da dívida de março de 2010, com impacto de 17,4 milhões. Em 2011, a amortização de R$ 495 milhões inclui a 6º emissão de debêntures, no montante de R$ 300 milhões, que vence em junho de 2011. 5.30% 4.87% 4.51% 3.09% 2009 2010 2011 Sep/12 Real Cost Nominal Cost * Considering Hedge 13 13

14 Investments CAPEX BREAKDOWN (R$MN) 9M12 CAPEX (R$MN)
+32.5% 928.6 Generation Maintenance 11.5 Others 59.6 -10.9% 700.6 169.9 Generation Projects 1.7 563.8 592.7 546.7 527.8 Develop. of Distribution System 200.7 181.8 85.1 116.9 758.7 92.9 45.8 Quality Improvement 97.9 518.8 453.8 507.6 446.9 482.0 Losses Combat 156.4 2008 2009 2010 2011 9M11 9M12 No ano, a Light pretende investir R$ 706 milhões, divididos em: R$ 513 milhões para distribuição, R$ 117 milhões para geração, dos quais R$ 84 milhões para os novos projetos, e R$ 76 milhões para administração e outros negócios. Ano 2010 Geração: Itaocara: R$ 15MM Lajes: R$ 34MM Paracambi: R$ 35MM Manutenção: R$ 33MM 2010 Distribuição – Base de Remuneração (BRR): R$ 513 MM Empresa de Referência: R$ 67MM Investments in Electric Assets (Distribution) 14 14 14

15 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. 15