N o v e m b e r

Transcription

1 N o v e m b e r

2 Light CEMIG BTG PACTUAL BANCO DO BRASIL SANTANDER BV FINANCEIRA 6.41% 2.79% 5.59% 5.59% 5.57% RME LEPSA BNDESPAR MARKET 26.06% 13.03% CONTROLLING GRUPO 52% *Considers the direct and indirect stake in Light 13.03% Light (Holding) 9.4% 38.5% FREE FLOAT 48% 100% 100% 51% 100% 25.5% 100% 100% 100% 50.1% Light Serviços de Eletricidade S.A Light Energia Lightger Itaocara Energia Ltda. Amazônia Energia Light Esco Prestação de Serviços Lightcom Comercializadora de Energia Light Soluções em Eletricidade Ltda. Energia SPE Olimpica Energia Olímpica S.A. 100% Instituto Light 51% Axxiom Soluções Tecnológicas 15.7% Renova Energia 51% Consórcio UHE Itaocara 51% 9.8% Usina Hidrelétrica Itaocara Norte Energia 51% 100% Guanhães Energia Lajes Energia 100% Central Eólica São Judas Tadeu Ltda. 100% Central Eólica São Judas Tadeu Ltda. Distribution Generation Commercialization and Services Institutional IT 2

3 Light in numbers DISTRIBUTION RJ State Concession 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) 1 IBGE (2010) Generation 8 1 Amazônia Energia Renova Guanhães Energia 6 Complexo de Lajes HPP Ilha dos Pombos 7 HPP Santa Branca 7 5 SHPP Paracambi 8 HPP Itaocara I 3

4 Rankings Among the largest players in Brazil INTEGRATED¹ Net Revenues 2015* - (R$ Billion) ELECTRICITY DISTRIBUTION² Energy Consumption in Concession Area 2015** - (GWh) º ,318 26,496 24,044 22,051 5º 21,354 POWER GENERATION PRIVATE-OWNED COMPANIES¹ Installed Hydro-generation Capacity (MW) 7,039 1 Source: Companies reports 2 Source: Relatório do Sistema de Apoio a ANEEL 4,995 4,931 2,658 2,562 2,274 1,911 1,451 9º 971 *** * Construction Revenue Included ** Captive Market *** Considers the 7 MW of Renova s SHPPs and 24 MW of Brasil PCH 4

5 Strategic Planning Value drivers to improve Light s operating performance and reduce financial risks. PRIORITIES FOR Revamp offer to cater to a 2broader audience Control CCPU 3 4 Improve customer retention 5 Strategic remodeling of Losses Program Strengthening collection initiatives and delinquency combat Selling non-core assets Reassess CAPEX and OPEX Debt Management 6 Tariff Review Anticipation 5

6 1. Losses Program Creation of dedicated officer, since March 16, fully focused on combating losses and reinforcing collection initiatives From To Distribution Department Engineering Officer (Dalmer Souza) Commercial Officer (Wilson Couto) * Commercial Superintendence Energy Recovery Superintendence Distribution Superintendence Field Work Superintendence High Voltage Technical Superintendence Distribution Superintendence Field Work Superintendence High Voltage Technical Superintendence Commercial Superintendence Energy Recovery Superintendence* * Recently hired executives 6

7 1. Losses Program New strategy focused on managerial measures Managerial measures in Possible Areas Combat initiatives targeting areas where the Company can incorporate and recover past due energy ( operativos ). Inspections based on reports and suspicious consumption ( Intelligence Center ). +100k inspections performed with an over 30% hit ratio Non Technical Losses Investments focused on smart grids in risky areas Installation of electronic meters. Use of collective measuring systems and grid protection in risky areas. Current Focus 7

8 1. Losses Program Losses breakdown per area indicates where Light can focus its initiatives 37,744 3,771 (10%) Grid Load (GWh) 12 months 37,499 3,865 (10%) 6,214 2,793 (45%) Non Technical Losses (GWh) 12 months 6,029 2,858 (47%) Customers with a purchasing power compatible with retroactive billing. Media campaign targeting medium to high-income households. 33,973 (90%) 33,635 (90%) 3,422 (55%) 3,171 (53%) Areas with a more expressive violence pattern. Deterioration of economic scenario and public safety conditions imposes additional difficulty. 2Q16 3Q16 2Q16 Possible Areas 3Q16 Risk Areas 8

9 1. Losses Program Company s strategy was reassessed in Mar/16 to recover downward trend in losses trajectory allied with efficient resource allocation Losses 12 months 22.73% 22.95% 23.22% 23.93% 23.92% 8,687 8,766 8,978 9,028 8,770 Capex+Opex Losses/Recovered Energy + Energy Incorporation + Load Reduction (R$/MWh) % 2,901 2,877 2,799 2,814 2, ,786 5,889 6,179 6,214 6,029 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 3Q15 3Q16 Non Tec. Losses GWh Tec. Losses GWh % Total Losses/Grid Load 9

10 2. Collection Significant improvement in collection rates despite unfavorable economic scenario Recent Negotiations Large Consumer (trains): R$ 39 MM assumed by the State Government (through the offsetting of VAT tax) to be paid in 12x. The remainder, in the amount of approximately R$ 50 MN, has already been negotiated(36x). State Government : R$ 46 MN, regarding outstanding invoices from , already being offset (36x). The remaining R$ 160 MN (Jan/15- Apr/16) will be compensated in 30 months. 10

11 3. Generation Assets Project Installed Capacity (MW) Assured Energy (MW average) Operational Start Stake Paracambi % Renova 672 (in operation) 1,998 (contracted) (in operation) (contracted) % Belo Monte 11,223 4, % Guanhães % Itaocara % 11

12 4. OPEX reduction PMSO* growing below inflation optimizing G&A Expenses PMSO (R$ MN) Number of Employees -4.7% ,327 4, % Period Inflation: IPCA: 8.8% % 9M15 9M16 Personnel Material/Outsourced Services/Others Dec/15 Sep/16 *Personnel; Material; Outsourced Services; Others. 12

13 4. CAPEX optimization CAPEX (R$ MN) 1, % % Conventional measures currently adopted in the Losses Combat Program are less capex intensive and deliver results in the medium/long run M M15 (Budget) Transfers to Subsidiaries Special Obligations (Losses) Other Investments Investments in Electrical Assets (Distribution) 9M16 13

14 Net Debt (R$ MN) 6,773 6,059 5, Debt Management Amortization (R$ MN)* Average Term: 3.25 years 1,490 1, Sep-15 Jun-16 Sep * Main Only After 2022 Net Debt / EBITDA (covenants methodology ) Amortization (R$ MN) 9M M16 1Q16 2Q16 3Q16 4Q16 14

15 6. New Concession Contract Rules In Aug/16, Aneel decided that companies not covered by the scope of law 12,783 could also fully adhere to similar rules applied to the New Concession Agreement Motivation Main changes According to the current legislation, as well as with the Concession Contract, Light is allowed to request an Extraordinary Tariff Revision in case of an economic-financial disequilibrium, without any obligation to sign the New Concession Contract. However, this possibility presents itself as a viable alternative for tackling the current concession disequilibrium once it allows the Company to bring forward the 2018 Tariff Revision by signing an amendment to the current Concession Contract, adhering to the new rules. Targets for quality and financial sustainability that, if not met, may lead to: Limitation on the distribution of dividends. Equity support from controlling shareholders. Concession caducity. Concession extinction. Analysis Tariff impact estimation Once this contract imposes additional risks, a comprehensive analysis should be performed in order to find an efficient balance between additional investments and benefits generated. Quality and financial targets should be feasible and reasonable given Light s concession area current situation (macroeconomic crisis, poor public safety conditions, etc). Compound impact of ordinary readjustment and tarriff review anticipation still generates Compound impact of ordinary readjustment and tarriff review anticipation still generates a relevant reduction to clients relevant reduction to clients 15

16 Contacts Ana Marta Horta Veloso Chief Executive Officer (21) Felipe Sá Head of Participations and Investor Relations (21)

17 Other Relevant Financial and Operational Information

18 Operating and Financial Highlights Operating Indicators 2013* M15 9M16 Var. Billed Energy (GWh) 25,717 26,493 26,446 19,951 19, % Captive Market (GWh) 20,391 21,500 21,361 16,077 15, % Total Losses (%) 22.57% 23.74% 23.22% 22.95% 23.39% 0.4 p,p, DEC 12 Months (hours) % FEC 12 Months (times) % Financial Indicators Net Revenue (R$ MN)** 6,602 8,260 9,710 7,358 6, % Adjusted EBITDA (R$ MN)*** 1,612 1,609 1,272 1, % EBITDA Margin **** 21.7% 18.5% 11.9% 14.2% 12.7% -1.5 p,p, Net Result (R$ MN) (119) % Net Debt (R$ MN) 5,114 5,914 6,502 6,773 5, % Net Debt/EBITDA (covenants) 2,84 3,70 4,16 4,23 3, Investments (includes transfers) (R$ MN) 937 1, % * Presented. ** Without Construction Revenue. *** Net Revenue minus Costs and Expenses, not accounting for Non Operating Result and Equity Income. **** Considers Construction Revenue and Adjusted EBITDA. 18

19 Assured Energy: 549 MWaverage Energy commercialization focused on the free market Hedge Available Energy Contracted Energy Average selling price in : R$ 192/MWh (base date: Jun, 2016) 19