4. Introduction
Presentation of Operating and Financial Information
► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian
Corporate Law, based on revised financial information. The consolidated financial information
represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests before Net
Income, resulting in participation of 65.11% ii) 100% of CELPA’s results, excluding 3.82% related to
minority interests before Net Income, resulting in participation of 96.18%; and iii) 100% of
Equatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49%
of minority interest before Net Income.
► The operating information presented herein consolidates 100% of CEMAR’s results, 100% of CELPA’s
results and 25% of Geramar’s results.
► The following information was not reviewed by the independent auditors: i) non-financial information
relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma
information and its comparison with the results presented in the period; and iii) management
expectations regarding the future performance of the Companies.
4
6. Operating Highlights
► CEMAR’s total billed energy volume reached 1,362 GWh in 3Q13, 12.3% higher than in 3Q12. The
total volume distributed by CELPA (captive and free markets) totaled 1,857 GWh in 3Q13, representing
growth of 9.1% YoY.
► In CEMAR, energy losses of the last 12 months ending 3Q13 represented 20.3% of the required
energy, with a decrease of 0.5 percentage points compared to 20.8% recorded in 3Q12. In CELPA, total
losses ended the year at 36.5% of the required energy.
► In 3Q13, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 19.2 hours, a
decrease of 10.7%, and 10.6 times, a decrease of 6.4%, compared to those observed at the end of
3Q12. In CELPA, these same indexes closed the quarter with improvements of 19.2% and 18.7%,
respectively. Analyzing CELPA’s indexes only in the quarter, we can see improvements of 17.9% and
32.0%, respectively.
6
7. Financial Highlights
► Net operating revenues (NOR) in 3Q13 reached R$1,203 million, almost twice 3Q12’s NOR, which reflects
the beginning of the consolidation of CELPA.
► In 3Q13, EBITDA totaled R$331 million, an 146.7% increase compared to the 3Q12 amount, mainly due to
the recognition of the CDE Revenue in CEMAR’s Tariff Review and CELPA’s Tariff Adjustment.
► The net result of the quarter was a profit of R$200 million, mainly due to the recognition of the CDE Revenue
in the quarter.
► In 3Q13, Equatorial's consolidated investments totaled R$161 million, 3.2% lower than those made in 3Q12.
If we consider only CEMAR’s own investments, the decrease amounted to 46.8% in the quarter.
► In August 2013, Equatorial transferred R$50 million to its subsidiary CELPA for Future Capital Increase.
7
9. Energy Market - CEMAR
► CEMAR: 3Q13 energy sales moved up by 12.3%, reaching 1,362 GWh.
Electricity Consumption per Segment (GWh)
CONSUMPTION SEGMENTS * (MWh)
Residential
3Q12
563.400
2Q13
606.984
3Q13
658.860
Chg.
16,9%
9M12
1.654.571
9M13
1.873.387
Chg.
13,2%
Industrial
Commercial
Others
128.518
240.682
279.996
112.909
253.536
276.432
127.738
272.786
302.309
-0,6%
13,3%
8,0%
355.237
706.436
813.572
354.759
775.029
844.411
-0,1%
9,7%
3,8%
1.212.595
1.249.861
1.361.693
12,3%
3.529.816
3.847.585
9,0%
TOTAL
* Does not include sales to CEPISA and ow n consumption.
Energy Balance (GWh)
ENERGY BALANCE (MWh)
Required Energy
Sold Energy (*)
Losses
3Q12
2Q13
3Q13
Chg.
9M12
9M13
Chg.
1.571.246
1.214.616
1.581.854
1.251.923
1.699.003
1.363.727
8,1%
4.807.472
3.853.646
8,3%
12,3%
4.439.536
3.535.713
356.630
329.931
335.276
-6,0%
903.823
953.826
5,5%
9,0%
(*) Co nsiders sale to the segments, o wn co nsumptio n and sales to CEP ISA
9
10. Distribution – Energy Losses in CEMAR
The non-technical losses index on the low-voltage market increased in the quarter due to the revision of the technical losses
index of the Company. Note that this does not impact the percentage of total losses.
10
11. Distribution – DEC and FEC - CEMAR
►
CEMAR: In 3Q13, the DEC index decreased 10.7% compared to 3Q12 while the FEC index decreased 6.4% compared to the same quarter last
year.
DEC (hours)
FEC (times)
21.5
-10.7%
3Q12
11.4
-6.4%
19.2
3Q13
3Q12
10.6
3Q13
11
12. Energy Market - CELPA
► CELPA: Energy demand growth of 9.1% in energy sales in 3Q13 (Captive Market + Free), reaching 1,857 GWh.
.
Electricity Consumption per Segment (GWh)
CONSUMPTION SEGMENTS * (MWh)
3Q12
2Q13
3Q13
Chg.
9M12
9M13
Chg.
Residential
Industrial
645.850
299.897
669.518
302.887
700.202
339.552
8,4%
13,2%
1.867.653
930.055
1.999.630
929.362
7,1%
-0,1%
Commercial
Others
379.460
290.699
402.887
300.736
418.796
310.328
10,4%
6,8%
1.090.346
848.413
1.193.639
888.331
9,5%
4,7%
1.615.905
1.676.027
1.768.878
9,5%
4.736.466
5.010.962
5,8%
86.436
83.002
87.716
1,5%
208.003
254.574
22,4%
1.702.342
1.759.030
1.856.593
9,1%
4.944.469
5.265.536
6,5%
TOTAL
Free Consumers
TOTAL (Captive + Free)
* Does not include ow n consumption.
Energy Balance (GWh)
Energy Balance (MWh)
Energy Sales (Captive + Own Consumption)
Total Losses
Required Energy
Own Generation
Energy Purchase (Contracts)
Energy Purchase (Spot Market)
Basic Network Losses
3Q12
1.622.956
948.784
2.571.689
105.796
2.535.444
(18.720)
(50.831)
2Q13
1.682.452
1.006.117
2.688.478
110.319
2.358.964
275.370
(56.175)
3Q13
1.775.472
1.053.750
2.828.517
115.621
2.495.787
275.311
(58.202)
Chg.
9,4%
11,1%
10,0%
9,3%
-1,6%
1570,7%
14,5%
9M12
4.758.655
2.597.467
7.356.075
292.595
7.120.931
98.195
(155.645)
9M13
5.030.136
3.015.932
8.045.091
328.572
7.086.373
798.141
(167.996)
Chg.
5,7%
16,1%
9,4%
12,3%
-0,5%
712,8%
7,9%
12
14. Distribution – DEC and FEC
►
CELPA: In 3Q13, the DEC index improved 19.2% compared to 3Q12 while the FEC index decreased 18.7% compared to the same quarter last
year. Analyzing CELPA’s indices only in the quarter, we can see improvements of 17.9% and 32.0%, respectively.
DEC (hours)
102.3
-19.2%
FEC (times)
51.3
-18.7%
82.7
41.7
CELPA – Last 12 months
3Q12
3Q13
20.3
3Q12
3Q13
11.9
-17.9%
-32.0%
16.7
8.1
CELPA – Quarterly
3Q12
3Q13
3Q12
3Q13
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19. Net Debt - Consolidated
100% CEMAR + 100% CELPA
Net Debt (R$MM) and Net Debt/ EBITDA
(Last 12 months)
2.6
2.0
989
Net Debt Reconciliation (R$MM)
2.7
2.2
1.8
1,430
932
426
1.6
1,403
1,001
1,078
1,593
3,097
1,078
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
Gross Debt
Net
Regulatory
Cash
Net Debt
Asset
We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to the
change in the accounting consolidation rule.
19
20. Net Debt – Pro-rata
65.11% CEMAR + 96.18% CELPA
Net Debt (R$MM) and Net Debt/ EBITDA
(Last 12 months)
2.7
2.0
638
2Q12
1,001
1.8
2.9
984
2.2
380
1.6
629
601
3Q12
Net Debt Reconciliation (R$MM)
4Q12
1Q13
2Q13
738
1,374
2,492
738
3Q13
Gross Debt
Net
Regulatory
Cash
Net Debt
Asset
We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to the
change in the accounting consolidation rule.
20
21. Capex - Equatorial
► CEMAR: In 3Q13, total capex reached R$68 million, of which R$62 million are own capex and R$6 million regarding the Light for
All Program (PLPT).
► CELPA: In 3Q13, total capex reached R$94 million, of which R$78 million are own capex and R$16 million regarding the Light for
All Program (PLPT).
INVESTIMENTS (R$MM)
3Q12
2Q13
3Q13
Chg.
9M12
9M13
Chg.
CEMAR
Own (*)
116
54
62
-46.8%
291
194
-33.5%
PLPT
50
7
6
-88.8%
132
18
-86.4%
Total
167
61
68
-59.5%
423
212
-50.0%
Own (*)
0
89
78
N/A
0
250
N/A
PLPT
Total
0
0
4
93
16
94
N/A
N/A
0
0
23
0
N/A
167
154
161
-3.2%
423
212
-50.0%
CELPA
TOTAL EQUATORIAL
N/A
(*) Including indirect Light Fo r A ll P rogram investments
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23. Disclaimer
•
This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the
expectations of Company’s management and on available information. These prospects include statements concerning the Company’s
current intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir and
in the IPE system of the Brazilian Securities and Exchange Commission (CVM).
•
Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share
and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors
and values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completely
rely on the information above.
•
The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify
estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements.
•
This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And,
this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind.
23
