Beruflich Dokumente
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4Q12 9,625 5,114 5,965 851 1,269 413 45.4% 4Q12 1,964 484 24.6% 160 4,273 269
4Q11 8,716 4,904 5,673 769 1,380 434 40.4% 4Q11 1,577 324 20.5% 132 3,383 336
Var. % 10.4% 4.3% 5.2% 10.8% -8.1% -4.8% 5 p.p. Var. % 24.5% 49.5% 4.1 p.p. 21.3% 26.8% -19.9%
2012 36,409 20,054 23,384 3,330 5,373 1,719 45.4% 2012 6,944 1,456 21.0% 424 4,273 797
2011 34,983 19,877 22,932 3,056 5,523 1,620 40.4% 2011 6,150 1,238 20.1% 342 3,383 929
Var. % 4.1% 0.9% 2.0% 9.0% -2.7% 6.1% 5 p.p. Var. % 12.9% 17.7% 0.9 p.p 24.0% 26.8% -14.2%
BM&FBOVESPA: LIGT3 OTC: LGSXY Total Shares: 203,934,060 shares Free Float: 70,175,480 shares (34.41%) Market Value (03/22/13): R$ 3,752 milhes
1
Conference Call: Date: 03/27/2013 Time: 4 p.m. Brazil // 3 p.m. US ET Phones: +55 (11) 2188 0200 // +1 (646) 843 6054 Webcast: www.light.com.br
RI Contacts: Phone: +55 (21) 2211-2650/ 2660 Fax: +55 (21) 2211-2787 E-mail: ri@light.com.br Website: www.light.com.br/ri
EBITDA is calculated in accordance with CVM Instruction 527/2012 and means: net income + income tax and social contribution tax + financial expenses, net + depreciation and amortization.
The Company closed December 2012 with a net debt of R$4,273.1 million, up 26.3% compared to December 2011. For the purposes of the covenants the Net Debt/EBITDA ratio stood at 2.9x; Non-technical energy losses over the last 12 months accounted for 45.4% of billed energy in the low-voltage market (ANEEL criterion), 5.0 p.p. up on December 2011, strongly impacted by the change in the treatment of clients with long-term default; On March 25, the Board of Directors approved the distribution of dividends in the amount of R$91,770,327.00, or, R$0.45 per share, based on profit reserves existing in the balance sheet of December 31, 2012. Such amount, together with those already decided in the year, corresponds to an 86,5% payout of adjusted net income for the year and plus payments during the year lead to a dividend yield of 7.68%. The proposal will be submitted to the approval of the shareholders at an Ordinary General Meeting (OGM) to be called.
4Q11 Results
Results for 4Q11 were reclassified due to a change in an accounting practice regarding the recording of actuarial gains or losses related to defined benefit pension schemes, which used to be recognized in the income statement for the year and now are recognized in shareholders equity, in compliance with CVM Deliberation 600/09. This accounting practice allows for more relevant information to be presented and will be consistent for the next fiscal years for recording actuarial gains or losses. To comply with CVM Deliberation 592/09, comparative balances were duly adjusted to reflect the change retrospectively. The reclassification impacted the following income statement accounts for 4Q11: Financial Expenses (R$47.5 million decrease); Income Tax/Social Contribution Tax (R$16.1 million increase); and Net Income (R$31.3 million increase). In addition to the pension scheme-related adjustments, EBITDA amounts for FY 2011 and in 4Q11 were also reclassified in this release to reflect the impact of CVM Instruction 527/2012, which states that EBITDA should be calculated based on the net income for the period, plus income taxes, financial expenses net of financial revenue and depreciation, amortization and depletion.
Table of Contents
1. The Company ............................................................................................................................................ 4 2. Operating Performance ............................................................................................................................ 5 2.1 Distribution ......................................................................................................................................... 5 Energy Balance ................................................................................................................................. 8 Energy Losses ................................................................................................................................... 9 Communities .................................................................................................................................. 11 Collection ....................................................................................................................................... 12 Operating Quality .......................................................................................................................... 13 2.2 Generation ........................................................................................................................................ 14 2.3 Commercialization and Services ....................................................................................................... 14 3. Financial Performance ............................................................................................................................ 15 3.1 Net Revenue ..................................................................................................................................... 15 Consolidated .................................................................................................................................. 15 Distribution .................................................................................................................................... 16 Generation ..................................................................................................................................... 16 Commercialization and Services .................................................................................................... 17 3.2 Costs and Expenses .......................................................................................................................... 17 Consolidated .................................................................................................................................. 17 Distribution .................................................................................................................................... 18 Generation ..................................................................................................................................... 21 Commercialization and Services .................................................................................................... 22 3.3 EBITDA .............................................................................................................................................. 23 Consolidated .................................................................................................................................. 23 Distribution .................................................................................................................................... 25 Generation ..................................................................................................................................... 25 Commercialization and Services .................................................................................................... 25 3.4 Consolidated Financial Results ......................................................................................................... 26 3.5 Debt .................................................................................................................................................. 28 3.6 Net Income ....................................................................................................................................... 30 3.7 Investments ...................................................................................................................................... 31 Generation Capacity Expansion Projects ...................................................................................... 33 4. Cash Flow ................................................................................................................................................ 36 5. Corporate Governance ........................................................................................................................... 37 6. Capital Markets ...................................................................................................................................... 39 Dividends........................................................................................................................................ 40 7. Recent Events ......................................................................................................................................... 42 8. Disclosure Program................................................................................................................................. 43
1. The Company
Light S.A. is a holding company that controls subsidiaries and affiliated companies in three main business segments: electricity distribution, generation and commercialization/services. In order to increase the transparency of its results and enable investors to make a better evaluation, Light also presents its results in a segmented form. The Companys corporate structure as of December 2012 is shown below:
100%
100%
51%
100%
25.5%
100%
100%
100%
100%
51%
20%
CR Zongshen E-Power Fabricadora de Veculos Ltda.
Lightger S.A.
Instituto Light
21.99%
100%
100%
9.77%
51%
Distribution
Generation
Institutional Systems
Electric Vehicles
OPERATING INDICATORS N of Consumers (thousand) N of Employees Average provision tariff - R$/MWh Average provision tariff - R$/MWh (w/out taxes) Average energy purchase cost - R$/MWh Installed generation capacity (MW) Assured energy (MW)) Pumping and internal losses (MW) Available energy (Average MW) Net Generation (GWh) Load Factor
Does not include purchase on spot.
4Q12 4,030 4,223 464.5 323.7 134.3 942 687 87 600 1,157 63.4%
4Q11 4,128 4,134 424.8 293.4 107.1 866 685 87 598 1,266 64.6%
2. Operating Performance
2.1 Distribution
1.3% 2,006 2,032 -1.3% 1,010 558 452 4Q11 4Q12 4Q11 996 612 384 4Q12
13.5% 1,752 165 1,587 1,988 192 1,795 905 46 860 4Q11 4Q12 4Q11 4.9% 949 47 903 4Q12 4Q11 4Q12 4,904 5,114
Residential
Industrial
Others
Total
Total energy consumption in Light SESAs concession area (captive clients + transport of free clients2) came to 5,965 GWh in 4Q12, 5.2% up on 4Q11, chiefly due to the increase in commercial consumption. If consumption from free client CSN is taken into account, total consumption came to 6,416 GWh in 4Q12, 6.1% higher than consumption in 4Q11, which totaled 6,046 GWh. Residential consumption totaled 2,032 GWh in the quarter, accounting for 34.1% of the total market. During this period, consumption was primarily impacted by two effects: (i) the termination of clients with long-term default, and (ii) the reclassification of condominiums from the residential to the commercial segment pursuant to an ANEEL resolution. Even with such effects, there was a 1.3% increase in residential consumption year-over-year. Excluding these impacts, residential increase would have been 9.5%. This change was influenced by higher temperatures in the quarter, primarily in December when temperatures in excess of 30.0 C were recorded on 18 days. On December 26, the city of Rio de Janeiro recorded a temperature of 43.2 C, the highest since measurements by Inmet began, in 1915. In addition, minimum temperatures were also higher in December, which increased the monthly average by 3.6 C when compared to the same month in 2011.
To preserve comparability with the market approved by ANEEL in the tariff adjustment process, the billed energy of the free consumer CSN was excluded, in view of this clients then planned migration to the core network. Energy consumption by CSN totaled 451 GWh in 4Q12 and 374 GWh in 4Q11. 5
2
The number of billed residential clients fell by 3.4% to 3,684,000 in December 2012, with an average monthly consumption of 183.9 kWh in 4Q12, versus 175.4 kWh in 4Q11. Industrial consumption amounted to 996 GWh, equivalent to 16.7% of the total market, 1.3% down on the fourth quarter of 2011. Between 4Q11 and 4Q12, 13 clients, whose consumption totaled 71 GWh, migrated from the captive to the free market. Commercial clients consumed 1,988 GWh, 13.5% more than in 4Q11, accounting for 33.3% of the total. Excluding the reclassification of condominiums, commercial consumption moved up by 8.7%. Another 25 clients joined the free market in 4Q12, having been recorded under captive clients in 3Q12, resulting in an 18 GWh increase in free market consumption in the period. The other consumption segments, which accounted for 15.9% of the total market, posted an upturn of 4.9% over 4Q11, with the rural, government and public utilities categories, which represented 0.2%, 7.0% and 5.5% of the total market, respectively, recording an increase of 2.8% and 12.0%, and a reduction of 1.3% year-over-year, respectively.
-3.2% 8,418 8,149 -0.5% 3,944 2,213 1,731 2011 2012 2011 3,925 2,396 1,528 2012 2011 6,967 657 6,310
9.1% 7,599 743 6,856 3.0% 3,603 185 3,417 2012 2011 3,712 191 3,521 2012 2011 2012 19,877 20,054
Residential
Industrial
Others
Total
In compliance with ANEEL Resolution 414, Light changed its policy towards clients with long-term default, and began terminating their contracts. In 2012, approximately 170,000 clients located in areas where traditional collection initiatives are not effective were suspended. This measure also reduced billed consumption by approximately 229 GWh in the year and was reflected in energy losses, although there was no negative impact on cash generation. If the consumption that was unbilled due to the change in the policy were included, total consumption would have increased by 3.0% when compared to 2011.
Total energy consumption in LIGHT SESAs concession area (captive clients + transport of free clients3) amounted to 23,384 GWh in 2012, 2.0% up on 2011. Commercial consumption presented the best result, with a 9.1% growth. This may be explained by the expansion of the commercial and services industries in Rio de Janeiro over the last years and also by the reclassification of condominiums from the residential to the commercial segment. Excluding this reclassification, the commercial segment would be up 5.9% year-over-year, as a result of the commercial expansion in Rio de Janeiro. If consumption of the free clients CSN and CSA (the latter in 1Q11 only) is taken into account, total consumption came to 25,003 GWh in 2012, as compared to 24,658 GWh in 2011. Residential consumption totaled 8,149 GWh in 2012, accounting for a 34.8% share in the total market, 3.2% down on 2011, chiefly due to the impact of the termination of contracts with clients with long-term default and the reclassification of condominiums from the residential to the commercial segment. Excluding these effects, residential consumption increased by 2.3%. Average monthly consumption fell from 185.2 kWh in 2011 to 181.3 kWh in 2012. In 2012, industrial consumption amounted to 3,925 GWh, 0.5% down on 2011. Twelve clients in this segment, whose consumption totaled 151 GWh in 2012, migrated from the captive to the free market, while one client, with average monthly consumption of 1.5 GWh, migrated from the free to the captive market in June 2012. The industrial segment accounted for 16.8% of the total market in 2012. Commercial clients consumed 7,599 GWh, accounting for 32.5% of the total, with the retail, building services, and health-related services doing particularly well, with respective increases of 3.7%, 41.4% and 5.5%, and corresponding shares of 22.5%, 13.0% and 4.1%. Another 25 clients joined the free market in 2012, having been recorded under captive clients in 2011, resulting in a 34 GWh increase in free market consumption.
To preserve comparability with the market approved by ANEEL in the tariff adjustment process, the billed energy of the free consumers CSN and CSA was excluded, in view of these clients then planned migration to the core network. Energy consumption by these clients totaled 1,619 GWh in 2012 (Only CSN) and 1,725 GWh in 2011 (CSN + CSA). 7
Energy Balance
DISTRIBUTION ENERGETIC BALANCE - GWh Position: January - December 2012
PROINFA 545.7 CCEAR Light Energia 284.5 ITAIPU (CCEE) 5,351.5 AUCTIONS (CCEE) 16,306.0 NORTE FLU (CCEE) 6,368.4 OTHERS(*) (CCEE) 445.5 (*) Others = Purchase in Spot - Sale in Spot. Note: 1) At Light S.A., there is intercompany power purchase/sale elimination 2) Power purchase data as of 01/08/2013 (subject to change) Billed Energy 20,054.0 Residential 8,149.0 Industrial 1,528.3 Commercial 6,855.9 Losses + Non Billed Energy 8,700.5 Others 3,520.9
530.10 16.92
Energy Balance (GWh) = Grid Load - Energy transported to utilities - Energy transported to free customers* = Own Load - Captive market consumption Low Voltage Market Medium Voltage Market - Losses + Non Billed Energy
*Including CSN (in 1Q11) and CSA
Energy Losses
Light SESAs total energy losses amounted to 8,584 GWh, or 23.6% of the grid load, in the 12 months ended December 2012, 1.9 p.p. and 0.9 p.p. up on December 2011 and September 2012, respectively. In the same period, non-technical energy losses totaled 6,007 GWh, accounting for 45.4% of billed energy in the lowvoltage market (ANEEL criterion), (16.5% of the grid load) 2.3 p.p. up when compared to the losses of September 2012.
Light Losses Evolution 12 months
7,582 21.7% 15.0% 7,665 22.0% 15.3% 7,838 22.3% 15.6% 8,047 22.7% 15.8% 8,584 23.6% 16.5%
5,247 40.4% 35.1% Dec-11
33.3% Dec-12
Dec-11
Jun-12
Sep-12
Dec-12
Regulatory Losses
Losses (GWh)
The increase in non-technical energy losses rate in the low-voltage market was impacted by the high temperatures recorded during 2012, specially in the fourth quarter, and primarily by the initiative implemented at the beginning of the year related to the termination of contracts with clients presenting long-term default in areas where traditional collection initiatives are not effective, pursuant to ANEEL Resolution 414. There was no impact on cash generation, however. In regard to the program of new technologies to reduce losses, the pace of installation exceeded expectations for 2012, reaching a total of 341,000 electronic meters installed and 281,000 clients with a protected network in December.
Normalized Costumers
67,964
-21.6% 53,266
2011
2012
dez-11
dez-12
Conventional energy recovery processes, such as the negotiation of amounts owed by clients where fraud has been detected, resulted in the recovery of 125.2 GWh in 2012, 26.0% down on 2011. Fraud regularization programs yielded a total of 53,266 normalized clients, 21.6% less than in 2011. Despite the decline in both indices, the new strategy increased incorporated energy by 12.5% to 157.9 GWh, underlining the effectiveness of the regularization and inspection procedures.
12.5% 140.4
2011
2012
2011
2012
Light has invested in a new approach to prevent losses and default. The Zero Loss Area program (ZLA) began to be implemented in 2H12. The Company created small areas with 10 to 20 thousand clients and uses a contractor solely focused on enhancing loss and default indicators. The project, commercially known as Light Legal, is supported by SEBRAE to train partnering microentrepreneurs, had 13 operating ZLAs at year end and included approximately 200 thousand clients, especially at the Baixada Fluminense region, the West End (Zona Oeste) and the North End (Zona Norte). The 2013 goal is to reach a total of 30 Light Legal units, including approximately 400 thousand clients. The ZLAs opened in 2012 have electronic meters and a shielded network. Since the adoption of this equipment, nontechnical losses, which previously accounted for 45% of losses on average, have experienced a reduction of approximately 20 p.p.
10
Communities
The program to improve energy supply quality and reduce losses in the communities remains one of the Companys priorities and has shown good results. Since the beginning of the program, the Company has connected 72,737 clients to the new grid and meters. In 2012, 12,004 refrigerators and 390,575 bulbs were replaced as part of the energy efficiency program and 192.63 mi of cable were replaced by a stronger and shielded network, thus preventing energy theft and outages.
According to an ANEEL decision, at least 0.5% of Net Operating Revenue must be applied in Energy Efficiency Programs, and 0.3% of Net Revenue must be aimed at low-income consumers. The goals of the energy efficiency project include social responsibility and citizenship initiatives, the offer of highquality energy supply for the communities, the end of illegal electricity consumption, and the reduction in default levels. Up to 2012, energy efficiency initiatives benefited more than 400 thousand clients.The projects advantages involve the remodeling of electrical installations, the adoption of electric-shower heat-recovery and temperature-controlling systems, the replacement of incandescent bulbs with compact fluorescent ones, the replacement of highconsumption refrigerators with more modern and efficient equipment, visits and educational events on the rational and safe use of electricity, including environmentally-friendly disposal practices. Between 2003 and 2012, the project donated approximately 1,3 million fluorescent bulbs and 45 thousand refrigerators, contributing to a more efficient consumption of electricity by consumers. In 2011, the Company began a pilot project called Light Recycles (Light Recicla) at two eco-points in the Botafogo district: in the communities of Santa Marta and Humait. The project was based on the trade of recyclable materials for discounts on electricity bills. Thanks to its acceptance, Light Recycles opened six additional eco-points in the following communities: Chapu Mangueira, Babilnia, Santa Marta, Chcara do Cu, Rocinha e Cruzada So Sebastio. This project provides several advantages for the population, such as proper waste disposal, reduction of trash-collection expenses, and income generation, providing a new way of paying for electricity bills.
11
Collection
The 4Q12 collection rate totaled 95.5% of billed consumption, 1.0 p.p. down year-over-year, which may be chiefly due to the Large Clients segment, where collection was impacted by the billing cycle, with a large concentration of bills that are due at the end of the month, which will be collected in the next quarter. Retail collection in the quarter increased 1.0 p.p., from 92.5% in 4Q11 to 93.5% in 4Q12. In the year, the collection rate stood at 98.0% of billed consumption, 0.6 p.p. up on 2011, with the retail segment doing particularly well up 2.1 p.p. year-over-year. The Large Clients segment was down 2.2 p.p. when compared to 2011, impacted by the billing cycle. The good collection rate performance is a result of the constant initiatives from the default-combating program, such as: (i) the change in the criterion for treating clients with long-term default in the first half; (ii) more effective collection campaigns; (iii) the ongoing installation of electronic meters; and (iv) the 17.3% increase in the
3.2% 3.3% 3.4% 3.2% 3.2% 3.2% 3.2% 3.2% 3.0%
Retail
Large Costumers
4T10
Public Sector
4T11 4T12
Total
94.1% 94.3%
96.4%
Retail
Large Costumers
2010 2011
Public Sector
2012
Total
number of disconnections and the 47.2% upturn in the registration of clients with past due bills year-over-year. In 2012, provisions for past due accounts (PCLD) totaled
1.9%
R$31.3 million higher than the provisioned amount in 2011, of R$251.3 million, or 3.0% of the billed energy for that year. In 4Q12, PCLD totaled R$109.4 million, a R$74.2
PCLD/ROB
Provisionamento no recorrente
Provisions for Past Due Accounts 4T12 PCLD 109.4 4T11 Var. (R$) 2012 2011 Var. (R$) 35.3 74.2 282.6 251.3 31.3
million growth year-over-year. Such increase arises from the extraordinary effect of the adjustment of the estimate for
receiving old balances from large clients, including the governmental segment, in the amount of R$111.7 million. Excluding such effect, PCLD would be equivalent to a R$2.3 million reversal, reflecting the change in the criterion for
12
nov-12
set-10
jan-11
set-11
jan-12
set-12
treating clients with long-term default as from March 2012, in addition to default-combating activities throughout 2012. In the year without such an effect, the PCLD represented 1.9% of gross billing of energy.
Operating Quality
Light is fully committed to maintaining the supply of high-quality electricity. In 2012, it invested R$260.6 million to improve the quality of its supply and increase the capacity of its distribution network. In addition to improving relations between the distributor and its clients, quality levels will be of major importance in the regulatory model, given the rules that have already been approved for the 3rd tariff revision cycle. Companies will be encouraged to improve their quality standards, which will be recognized through the X factor. In 4Q12, 7.52 miles of low-voltage cable in the distribution network were replaced by multiplex cable, and 20.82 miles of medium-voltage open network cable were replaced with spacer cable. In addition, a total of 404 mediumvoltage circuits were inspected/maintained, 1,156 transformers were replaced and 21,115 trees were pruned. In the underground distribution network, 8,097 transformer vaults and 15,443 manholes were inspected. In addition, 46 transformers and 64 switches and 925 protectors were maintained. In 2012, the equivalent length of interruption indicator (DEC), expressed in hours, recorded 18.15 hours, while the equivalent frequency of interruption indicator (FEC), expressed in occurrences, stood at 8.39 for the same period. The indicators were impacted by the high temperatures recorded at the end of 2012, which generated an overload in the system, substantially contributing to the evolution of quality indicators.
8.23 9.16
Dec-10
Dec-11
Dec-12
13
2.2 Generation
In 4Q12, the energy sold on the captive market (ACR) totaled 1,069.4 GWh, 1.2% down year-over-year due to contract seasonality and returns from the Mechanism for the Offsetting of Surpluses and Deficits (MSCD), while the energy sold on the free market (ACL) amounted to 204.7 GWh, up by 18.3% year-over-year due to the higher volume of energy contracted. In relation to the spot market sales, this quarter was impacted by the poor hydrological conditions of the system, represented by the low Generation Scaling Factor (GSF) levels observed in October, November and December, of 96%, 90% and 97%, respectively. Due to these levels, Light Energia was forced to settle the deficit related to their spot market contracts, which resulted in a 4.9 GWh balance settled at the CCEE this quarter. In 2012, a total of 5,372.8 GWh was sold, 2.7% down on 2011. This result was primarily impacted by the spot market sales due to the poor hydrological conditions during the year, especially in 4Q12. In the captive market (ACR), volume was 2.0% down due to the returns from the Mechanism for the Offsetting of Surpluses and Deficits (MCSD). Such returns resulted in the termination of contracts in the captive market (ACR), which impacted the 20.5% sales growth on the free market (ACL).
LIGHT ENERGIA (GWh) Regulated Contracting Environment Sales Free Contracting Environment Sales Spot Sales (CCEE) Total 4Q12 1,069.4 204.7 (4.9) 1,269.2 4Q11 1,082.0 173.0 125.4 1,380.4 % -1.2% 18.3% -8.1% 2012 4,103.0 746.6 523.2 5,372.8 2011 4,185.7 619.8 717.5 5,523.0 % -2.0% 20.5% -27.1% -2.7%
Volume (GWh)
6.1% 1,719.1 1,620.2
413.3
4Q12
2011
2012
plants for a large hotel chain and a shopping mall in So Paulo; one project for integrated services sale of energy added to the remodeling of a chilled water plant for a shopping mall in Rio de Janeiro; and the construction of a 138 kV transmission line for a large domestic mining company.
14
In 2012, 13 service provision projects were carried out, of which seven are still ongoing, including a co-generation project for a large beverage company and another related to a project for the construction of a solar power plant at the Maracan soccer stadium, in addition to four new projects contracted in 2012, to begin in 2013.
3. Financial Performance
3.1 Net Revenue Consolidated
Net Revenue (R$ MN) Distribution Billed consumption Non billed energy Network use (TUSD) Short-Term (Spot) Others Subtotal (a) Construction Revenue Subtotal (a') Generation Generation Sale (ACR+ACL) Short-Term Others Subtotal (b) Commercialization and Services Energy Sales Services Subtotal (c) Others and Eliminations (d) Total w/out construction revenue (a+b+c+d) Total (a'+b+c+d) 4Q12 1,497.4 92.1 145.4 39.5 20.2 1,794.7 199.3 1,994.0 102.7 (0.2) 14.2 116.7 67.1 20.1 87.2 (35.0) 1,963.6 2,162.9 4Q11 1,280.9 31.0 126.2 19.9 0.1 1,458.1 237.8 1,695.9 86.0 4.6 90.6 44.9 5.4 50.2 (21.6) 1,577.3 1,815.1 Var.% 16.9% 196.9% 15.2% 98.9% 18743.4% 23.1% -16.2% 17.6% 19.4% 208.3% 28.8% 49.6% 273.9% 73.6% 61.9% 24.5% 19.2% 2012 5,510.0 98.9 568.9 67.6 76.9 6,322.3 669.3 6,991.6 364.6 38.5 37.2 440.2 240.9 50.3 291.3 (110.0) 6,943.8 7,613.1 2011 5,119.9 16.4 499.8 45.9 30.3 5,712.3 794.6 6,506.9 319.6 5.2 11.0 335.8 166.9 23.3 190.2 (88.1) 6,150.1 6,944.8 Var.% 7.6% 503.7% 13.8% 47.2% 153.7% 10.7% -15.8% 7.4% 14.1% 643.5% 239.1% 31.1% 44.3% 115.9% 53.1% 24.9% 12.9% 9.6%
Balance of the settlement on the CCEE The subsidiary Light SESA counts revenues and costs, with zero margin, related to services of construction or improvement in infrastructure used in services of electricity distribution.
Consolidated net operating revenue totaled R$2,162.9 million in 4Q12, 19.2% up on 4Q11. Excluding revenue from construction, which has a neutral effect on net income, consolidated net revenue increased by 24.5% to R$1,963.6 million. All of the Companys operational segments recorded growth, led by distribution, driven by the increase in consumption and the tariff adjustment in November, in addition to the commercialization and services segment, impacted by the higher difference settlement prices (PLD) practiced in the period.
15
In 2012, all business segments presented a good performance, leading to the 12.9% growth in consolidated net revenue, excluding the construction revenue, when compared to 2011, totaling R$6,943.8 million.
Distribution
Net Revenue from distribution totaled R$1,994.0 million in 4Q12, 17.6% more than in 4Q11. Excluding revenue from construction, net revenue from distribution amounted to R$1,794.7 million, up by 23.1% year-over-year. The improvement was mainly due to the average energy tariff increase of 12.27% for the captive market, as of November 7, 2012, and the high temperatures during the quarter, primarily in December, resulting in a 5.2% growth in the total market.
TUSD 9% 569
2,501
Residential 41%
Industrial 7%
Others 13%
768 1,830
411 Industrial 7%
Commercial 29%
Commercial 30%
Excluding revenue from construction, net revenue from distribution came to R$6,322.3 million in the year, 10.7% up on 2011, mainly due to the 2.0% rise in total consumption coupled with the impact of the November 2011 tariff adjustment of 7.82%. The distribution market is mostly comprised by the residential and commercial segments, which together accounted for 71.2% of the revenue with energy sales, while sales in the free market accounted for 9.4%.
Generation
Net revenue from generation totaled R$116.7 million in the quarter, 28.8% more year-over-year, chiefly due to: (a) an increase in average spot market price, which was seven times higher than the average price in 4Q11 (R$ 305.2/MWh in 4Q12 from R$42.4/MWh in 4Q11), coupled with the 18.3% growth in the volume of energy sold on
16
the free market (ACL); and (b) miscellaneous revenue, including the consolidation of Renova Energias revenue, which was impacted by the opening of the wind farm, in July 2012. Net revenue for 2012 amounted to R$440.2 million, 31.1% up on 2011, primarily due to the higher price and volume of energy contracts traded on the free market (ACL).
In 2Q12, operating costs and expenses totaled R$1,776.4 million, 12.6% up year-over-year. Excluding construction costs, consolidated costs and expenses rose by 17.7% over 4Q11, mainly led by the costs and expenses in the distribution segment, strongly driven by non-manageable costs, up 34.1%, and the commercialization and services segment, with a substantial rise in the volume of energy bought for trading coupled with higher difference settlement prices (PLD), which resulted in a 50.1% increase in costs from the purchase of energy from the traders.
17
In 2012, consolidated costs and expenses, excluding construction costs, totaled R$5,844.7 million, 10.8% more than in 2011.
Distribution
In 4Q12, distribution costs and expenses moved up by 10.9% over 4Q11. Excluding construction costs, total costs and expenses grew by 16.0%, mainly due to the 34.1% increase in non-manageable costs and expenses, partially offset by the 46.7% decline in manageable costs and expenses, which were impacted by non-recurring effects during the quarter. In 2012, distribution costs and expenses increased 6.1% over 2011. Excluding construction costs, total costs and expenses grew by 9.6%, chiefly led by the 16.9% rise in non-manageable costs and expenses.
Costs and Expenses (R$ MN) Non-Manageable Costs and Expenses Energy Purchase costs Costs with Charges and Transmission Others (Mandatory Costs) Manageable Costs and Expenses PMSO Personnel Material Outsourced Services Others Provisions Depreciation and Amortization Other Operacional/Revenues Expenses Construction Revenue Total costs w/out Construction Revenue Total Costs 4Q12 (1,328.5) (1,133.5) (236.8) (4.3) (149.1) (176.0) (61.1) (4.0) (93.6) (17.3) (250.2) (80.4) 357.5 (199.3) (1,477.5) (1,676.9) 4Q11 (990.8) (785.3) (201.5) (4.0) (279.7) (149.6) (39.9) (6.8) (94.9) (8.1) (56.8) (72.3) (1.0) (237.8) (1,273.6) (1,511.4) Var.% 34.1% 44.3% 17.5% 7.2% -46.7% 17.6% 53.1% -41.5% -1.3% 114.6% 340.8% 11.1% -16.2% 16.0% 10.9% 2012 (4,410.8) (3,527.8) (866.2) (16.8) (1,103.4) (692.0) (256.9) (17.1) (354.2) (63.7) (473.1) (293.3) 355.0 (669.3) (5,514.2) (6,183.5) 2011 (3,772.2) (2,976.1) (779.0) (17.1) (1,258.9) (646.8) (213.3) (24.9) (361.3) (47.4) (299.4) (306.8) (6.0) (794.6) (5,031.2) (5,825.8) Var.% 16.9% 18.5% 11.2% -1.5% -12.4% 7.0% 20.5% -31.2% -1.9% 34.6% 58.0% -4.4% -15.8% 9.6% 6.1%
In 4Q12, non-manageable costs and expenses came to R$1,328.5 million, 34.1% up on the same period in 2011. Purchased energy costs increased by 44.3% over 4Q11, mainly due to the higher difference settlement prices (PLD) in the period, which resulted in higher expenses in two items: (i) Availability Contracts, thanks to the thermal plant activation orders from the National System Operator (ONS) to replenish reservoir levels; and
29.5% 52.4%
51.9%
2011
LEILES NORTE FLU
2012
ITAIPU SPOT
18
(ii) exposure to purchases from the spot market, in light of the higher temperatures, chiefly in December, when maximum temperatures exceeded historical averages. In addition, other contributing factors were: (iii) the 6.5% increase in energy purchased volume to meet captive market demand; and (iv) the contract adjustment with UTE Norte Fluminense in November 2012. Costs with charges and transmission increased by 17.5%, mainly due to the 102.5% growth in System Service Charges (ESS), thanks to the higher number of thermal plant dispatches outside the order of merit, when compared to the same period in 2011.
LEILES
55.7%
55.8%
Non-manageable costs are transferred to consumers and the increase of such costs above the regulatory level comprises a regulatory asset (CVA) balance, to be taken into account in the next tariff readjustment, but which are not recorded in the income statement in accordance with the International Financial Reporting Standards (IFRS). Such regulatory assets totaled R$132.9 million in 4Q12. The average purchased energy cost, excluding spot market purchases, amounted to R$118.9/MWh in 2012, 13.9% up on the R$104.4/MWh recorded in 2011. Costs and expenses with energy purchases in the year totaled R$3,527.8 million, an 18.5% increase over 2011, chiefly due to: (i) the upturn in difference settlement prices (PLD), which drove up the cost of thermal plant availability and spot market purchases; (ii) the readjustments to existing contracts in November 2011 and November 2012; (iii) the increase in energy purchased volume; and (iv) the exchange variation impacting energy purchase costs from Itaipu and UTE Norte Fluminense. Costs with charges climbed by 11.2% between 2011 and 2012, mainly due to the annual PROINFA readjustment, in accordance with an ANEEL Resolution, and the rise in System Service Charges (ESS), thanks to the activation of thermal plants, dispatched outside the order of merit.
In 4Q12, manageable operating costs and expenses, comprising personnel, materials, outsourced services, provisions, depreciation, other operational revenues/expenses and others, totaled R$149.1 million, 46.7% down on 4Q11. This result was primarily impacted by two factors: (i) the recording under other operating revenue/expenses from distribution of the asset remuneration revenue at the end of the concession, calculated based on the new repositioned value criterion, defined by the Granting Power through Provisional Measure 579/2012, in the amount of
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R$408.2 million; and (ii) non-recurring provisions totaling R$284.5 million in 4Q12. Excluding such amounts, manageable operating costs and expenses totaled R$272.8 million, 2.5% down on 4Q11. The following table shows the total provisions in the quarter:
Non Recurrign Events Loss expectation from physical-accounting conciliation ordered by ANEEL Resolution 367/2008 Write-off of Fixed Assets Provisions for Past Due Accounts by the revision of estimates for receiving old balances Additional provisions for contingencies for civil lawsuits and labor, and judicial deposits Total
The Companys PMSO (personnel, materials, services and others) totaled R$176.0 million in the quarter, 17.6% up on 4Q11, due to the expansion on the personnel and others lines, which presented changes in the amounts of R$21.1 million and R$9.2 million, respectively. The 53.1% increase in the personnel line is mainly due to: (i) the reversal of the provision related to the Voluntary Severance Program (PDV); and (ii) the concentration of labor capitalization for investments, both of which took place in 4Q11, generating R$8.9 million and R$7.4 million differences, respectively, year-over-year. In addition, payroll was impacted by the 6.0% increase from the annual collective bargaining as of June. The 114.6% growth in the others line was mainly due to: (i) the highest concentration of capitalization in the car rental and leasing account in 4Q11, generating a R$4.5 million difference; and (ii) credit from lawsuits in 4Q11, in the amount of R$3.2 million. The depreciation and amortization line rose 11.1% due to the remuneration basis preparation work, thanks to the intensification of the unitization of property, plant and equipment in 4Q12. The other operating revenues/expenses line totaled R$357.5 million in revenues, compared to a R$1.0 million expenseregistered in the same period of 2011, mainly due to the combination of three factors: (i) the recording of the asset remuneration revenue at the end of the concession, calculated based on the new repositioned value criterion, defined by the Granting Power through Provisional Measure 579/2012, in the amount of R$408.2 million; (ii) the write-off of property, plant and equipment from the change in the data system, in the amount of R$33.2 million; and (iii) the provision in the amount of R$10.0 million related to the loss expectation from the physicalaccounting reconciliation ordered by ANEEL Resolution 367/2009. The provisions account recorded a 340.8% rise on 4Q11 due to the non-recurring effect of provisioning in the amount of R$241.3 million in 4Q12, of which R$129.6 million for contingencies mainly related to labor suits and
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judicial deposits, and R$111.7 million for provisions for past due accounts (PCLD), related to the extraordinary effect of the adjustment of the estimate for receiving old balances from large clients, including the governmental segment. Excluding such amounts, the provisions line would have totaled R$8.9 million, 84.3% down on 4Q11. In 4Q12, PCLD totaled R$109.4 million, a R$74.2 million growth year-over-year. Such increase arises from the extraordinary effect of the adjustment of the estimate for receiving old balances from large clients. Excluding such effect, PCLD would be equivalent to a R$2.3 million reversal, reflecting the change in the criterion for treating clients with long-term default as from March 2012, in addition to default-combating activities throughout 2012. Manageable costs and expenses totaled R$1,103.4 million in 2012, 12.4% down on 2011. The Companys PMSO costs and expenses amounted to R$692.0 million, a 7.0% increase, mainly due to the 20.5% growth in the personnel line. In 2012, provisions for past due accounts (PCLD) totaled R$282.6 million, accounting for 3.2% of gross billed energy, R$31.3 million higher than the provisioned amount in 2011, of R$251.3 million, or 3.0% of the billed energy for that year. Net of the non-recurring effect in 4Q12, PCLD totaled R$170.8 million in 2012, accounting for 1.9% of gross billed energy revenue.
Generation
Operating Costs and Expenses (R$ MN) Personnel Material and Outsourced Services Purchased Energy (CUSD) Depreciation Other Operacional/Revenues Expenses Others (includes provisions) Total 4Q12 (7.5) (8.7) (17.9) (16.8) 5.0 (7.5) (53.4) 4Q11 (6.7) (7.2) (5.6) (14.1) (0.3) (7.1) (41.0) Var.% 11.9% 20.3% 222.9% 19.1% 4.9% 30.2% 2012 (25.3) (23.4) (42.1) (63.5) 6.6 (33.3) (181.0) 2011 (23.8) (19.7) (18.8) (57.0) 0.1 (29.6) (148.7) Var.% 6.4% 18.6% 124.1% 11.4% 7435.6% 12.7% 21.7%
In 4Q12, Light Energias costs and expenses amounted to R$53.4 million, an increase of 30.2% over 4Q11. Such performance was due to the rise on the purchased energy line, mainly arising from the settlement of the R$4.8 million deficit between the contracted and the allocated physical guarantee on the spot market and the purchase of the energy generated by Paracambi SHP in the amount of R$3.9 million. Fourth-quarter costs and expenses were broken down as follows: personnel (14.1%), materials and outsourced services (16.3%), CUSD/CUST distribution/transmission system usage / Purchased Energy (33.6%), and depreciation and others (36.0%). PMSO per MWh generated by Light Energias plants in the quarter came to R$16.2/MWh, versus R$15.6/MWh in 4Q11. In 2012, Light Energias costs and expenses came to R$181.0 million, 21.7% more than in 2011, mainly due to the consolidation of Renovas costs, which represented R$16.4 million, and energy purchases from the Paracambi SHP totaling R$10.6 million.
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In 4Q12, costs and expenses totaled R$77.9 million, 66.4% higher than in the same period of 2011, chiefly due to purchased energy costs, which increased by 50.1% as a result of higher spot market prices. Another important factor was the 635.4% increase on 4Q11 in expenses with materials and outsourced services, mainly due to the construction of a solar power plant at the Maracan soccer stadium, in addition to the on-going co-generation project for a large beverage company. In 2012, costs and expenses totaled R$264.1 million, 50.8% up on 2011, driven by the increase in spot market prices in the period and the 13 service provision projects carried out in the year, of which seven are still on-going.
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Consolidated EBITDA in 4Q12 totaled R$483.9 million, 49.5% up year-over-year, while EBITDA5 margin stood at 24.6%. The 54.7% growth of EBITDA from distribution increased this segments share of consolidated EBITDA from 79.4% in 4Q11 to 81.8% in 4Q12. In 4Q12, EBITDA was impacted by the non-recurring (negative) effect of provisions and the non-recurring (positive) effect of the distribution concession financial assets. Excluding such impacts, EBITDA would have totaled R$360.2 million, an 11.3% growth year-over-year, mainly due to the combination of the excellent performance of consumption with the tariff readjustment, which drove net revenue from distribution. When adjusted by the regulatory asset (CVA), that is, regulatory assets and liabilities that should be taken into account during the next tariff readjustment cycle of distribution, reflecting, therefore, the gross cash generation potential, adjusted EBITDA would
EBITDA and Adjusted EBITDA 4Q12/4Q11- R$ Millions
133
Provisions
Net Revenue
EBITDA 4Q12
EBITDA 4Q11
NonManagable Costs
EBITDA is calculated in accordance with CVM Instruction 527/2012 and means: net income + income tax and social contribution tax + financial expenses, net + depreciation and amortization. 5 Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, due to the booking of revenues and costs with a zero margin.
23
have amounted to R$616.8 million in 4Q12, 73.4% up year-over-year. Excluding the impact of non-recurring effects this quarter, Adjusted EBITDA would have totaled R$493.1 million, 38.6% higher than in 4Q11. EBITDA for 2012 totaled R$1,456.2 million, 17.7% up on 2011, with EBITDA margin standing at 21.0%. The commercialization and services and the generation segments presented the biggest evolution in the year, with a 77.0% and 37.8% increase, respectively. EBITDA in 2012 was chiefly driven by the 12.9% growth in net revenue, excluding revenue from construction, which presented growth in all of the Companys operational segments. Excluding the impact of non-recurring effects in this quarter, EBITDA would have totaled R$1,332.5 million, 7.7% up on 2011, mainly due to the good performance of consumption, which drove net revenue. When adjusted by the regulatory asset (CVA), that is, regulatory assets and liabilities that should be taken into account during the next tariff readjustment cycle of distribution, reflecting, therefore, the gross cash generation potential, adjusted EBITDA would have amounted to R$1,781.6 million in 2012, 34.5% up on 2011. Excluding the impact of non-recurring effects this quarter, Adjusted EBITDA would have totaled R$1,657.9 million, 25.1% higher than in 2011.
EBITDA and Adjusted EBITDA 2012/2011- R$ Millions
34,5% 17,7%
87
794
(175)
325
Net Revenue
NonManageable Costs
Provisions
24
EBITDA 4Q12
EBITDA 4Q11
Distribution
EBITDA from distribution totaled R$397.6 million in 4Q12, 54.7% up year-over-year. EBITDA6 margin stood at 22.2%, 4.5 p.p. up on 4Q11. This was chiefly due to the 5.2% increase in consumption of the total market coupled with the tariff readjustment of November, which was partially offset by the higher purchased energy cost driven by higher spot market prices and the thermal plant activation cost. Part of the purchased energy cost upturn comprises regulatory assets and liabilities (CVA), which are taken into account for tariff readjustment purposes. If EBITDA from distribution were adjusted based on the CVA, it would amount to R$530.5 million. In 2012, EBITDA from distribution totaled R$1,101.4 million, an 11.4% growth when compared to 2011, and EBITDA margin stood at 17.4%, a 0.1 p.p. increase. This was also driven by the higher net revenue for the year, in light of the 2.0% rise in the total market and the positive impact of the 7.82% tariff readjustment of November 2011. Including CVA, adjusted EBITDA from distribution in 2012 would have amounted to R$1,426.7 million. Net of the non-recurring effects of this quarter, adjusted EBITDA from distribution totaled R$1,303.0 million, 21.1% up on 2011.
Generation
Light Energias EBITDA totaled R$78.9 million in 4Q12, a 23.8% rise year-over-year, chiefly due to: (i) the growth in the volume of energy sold on the free market (ACL) coupled with a higher average price when compared to 4Q11; and (ii) the consolidation of Renova Energias results, whose EBITDA amounted to R$7.8 million, impacted by the opening of the wind farm in July of 2012. EBITDA margin stood at 67.6% in 2Q12. In 2012, EBITDA from generation amounted to R$336.4 million, 37.8% higher than in 2011, and EBITDA margin stood at 76.4%, a 3.8 p.p. rise in relation to 2011, chiefly due to the combination of higher price and higher volume of energy sold on the free market (ACL).
The Companys financial results in the quarter was a negative R$133.4 million, with a 65.1% growth in relation to the negative financial results of R$80.8 million in 4Q11. Financial revenue in 4Q12 totaled R$70.8 million, 54.0% up year-over-year, primarily due to the non-recurring effect of the adjustment for inflation of judicial deposits from lawsuits on the other financial revenue line, in the amount of R$37.2 million. Financial expenses in 4Q12 was up by 61.1% when compared to 4Q11, totaling R$204.1 million. This was mainly due to the impact of the adjustment to present value that increased financial expenses, in light of the provisions in 4Q12 in the amount of R$43.5 million, related to conditional discounts provided for in installment contracts of large clients with Light, and due to the non-recurring effect of the adjustment for inflation of judicial deposits from lawsuits on the other financial expenses line, in the amount of R$35.0 million, partially offset by the retraction of debt charges totaling R$19.2 million driven by the decrease in interest rates and the replacement of a higher cost debt for a lower cost debt. There was also a 14.3% decrease on the compensation for violation of the DIC and FIC quality standards line. Its important to highlight that there was a reclassification of the financial result of 2011 related to the Brasilight pension
26
fund, due to a change in accounting practices. The actuarial liability adjustment resulting from CVM Instruction 600, which reduced Lights discount rate from 5.8% to 3.6% in 2012, previously accounted as a financial result, is now accounted as other comprehensive income in the net worth, without impacting on the contractual debt with the foundation. In 2012, the financial result was a negative R$495.7 million, 20.8% up on 2011, when the Company also had a negative financial result amounting to R$410.2 million.
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3.5 Debt
R$ MN Brazilian Currency Light SESA Debenture 4th Issue Debenture 5th Issue Debenture 7th Issue Debenture 8th Issue Eletrobrs CCB Bradesco Working Capital - Santander BNDES (CAPEX) BNDES FINEM Others Light Energia Debenture 1st Issue Debenture 2st Issue Debenture 3st Issue BNDES FINEM (CAPEX) Others Renova Energia Renova Debenture BNDES FINEM (CAPEX) Banco do Nordeste Guanhes Guanhes Debenture Light ESCO BNDES - PROESCO Light GER BNDES - Lightger Axxiom Axxiom Foreing Currency Light SESA National Treasury Merril Lynch BNP Citibank Light Energia Citibank Gross Debt Cash Net Debt (a) Braslight Debt (b) Adjusted Net Debt (a+b) Short Term 532.0 421.6 0.0 92.2 8.0 2.7 0.6 80.7 2.1 83.9 150.3 1.2 25.8 3.2 12.5 0.2 9.9 0.0 43.6 0.0 42.2 1.4 33.0 33.0 3.6 3.6 4.2 4.2 0.2 0.2 10.7 9.9 8.4 0.3 0.7 0.5 0.8 0.8 542.8 % 11.4% 9.0% 0.0% 2.0% 0.2% 0.1% 0.0% 1.7% 0.0% 1.8% 3.2% 0.0% 0.6% 0.1% 0.3% 0.0% 0.2% 0.0% 0.9% 0.0% 0.9% 0.0% 0.7% 0.7% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.2% 0.2% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 11.6% Long Term 3,526.0 2,507.5 0.0 112.6 648.6 469.6 4.5 300.0 80.0 574.0 318.3 0.0 661.3 171.2 423.4 29.8 36.8 287.6 67.2 197.8 22.5 0.0 0.0 9.6 9.6 59.9 59.9 0.0 0.0 597.3 433.8 32.2 102.2 95.0 204.4 163.5 163.5 4,123.2 % 75.6% 53.7% 0.0% 2.4% 13.9% 10.1% 0.1% 6.4% 1.7% 12.3% 6.8% 0.0% 14.2% 3.7% 9.1% 0.6% 0.8% 0.0% 6.2% 1.4% 4.2% 0.5% 0.0% 0.0% 0.2% 0.2% 1.3% 1.3% 0.0% 0.0% 0.7% 9.3% 0.7% 2.2% 2.0% 4.4% 3.5% 3.5% 88.4% Total 4,058.0 2,929.2 0.0 204.8 656.6 472.2 5.1 380.7 82.1 657.9 468.5 1.2 687.2 174.5 435.9 30.0 46.7 0.0 331.2 67.2 240.0 23.9 33.0 33.0 13.2 13.2 64.1 64.1 0.2 0.2 608.0 443.7 40.7 102.5 95.8 204.8 164.3 164.3 4,666.0 392.9 4,273.1 1,054.7 5,327.8 % 87.0% 62.8% 0.0% 4.4% 14.1% 10.1% 0.1% 8.2% 1.8% 14.1% 10.0% 0.0% 14.7% 3.7% 9.3% 0.6% 1.0% 0.0% 7.1% 1.4% 5.1% 0.5% 0.7% 0.7% 0.3% 0.3% 1.4% 1.4% 0.0% 0.0% 13.0% 9.5% 0.9% 2.2% 2.1% 4.4% 3.5% 3.5% 100.0%
114.8
939.9
28
The Companys gross debt on December 31, 2012 totaled R$4,666.0 million, a 3.1% reduction on September 2012, and 12.1% up year-over-year driven by investments and the
acquisition of interest in other companies. The main funding in the period was obtained as follows: (i) Light SESAs 8th debenture issue, amounting to R$472 million; (ii) Light Energias 3rd debenture issue, amounting to R$30 million; (iii) release of funds by the Brazilian Development Bank (BNDES), in the amount of R$490 million, to Light SESA; (iv) capital raising in foreign currency of R$202 million and R$162 million, respectively, for Light SESA and Light Energia, through Citibank, for working capital purposes, both hedged through a Real swap transaction; (v) Renovas 2
nd
9.2%
13.0%
94.4%
90.8%
87.0%
Dec-11
Sep-12
Brazilian Currency
Covenants Multiple R$ MN Gross Debt + Pension Fund - Cash = Net Debt (a) EBITDA Provision Other Operational Revenues/Expenses Regulatory Assets and Liabilities (CVA) Financial CVA EBITDA' (b)
2012
2011
Guanhess debenture issue in the amount of R$33 million, the last two issues in amounts proportional to Lights interest in the capital of these companies. Net debt in December 2012 totaled R$4,273.1 million, 18.0% up on September 2012, mainly due to the cash variation in the period. In December 2012, the net debt/EBITDA ratio stood at 2.9x. If adjusted for comparability purposes with the debt covenant indicator, which is 3.0x, the December 2012 ratio comes to 2.9x, respecting the debt/EBITDA covenant limit. The Company
4,666.0 4,163.9 1,054.7 1,096.1 377.6 780.7 5,343.1 4,479.4 1,456.2 1,243.6 475.2 300.6 375.6 (5.9) 325.3 87.2 14.0 (6.4) 1,867.2 1,643.7 2.9 2.7
+ + =
also has a limit for the EBITDA/Interest rate coverage indicator, which should be higher than 2.5x. The result for this indicator in 2012 was 4.5x.
481 671 784 886
The Companys debt has an average term to maturity of 4.2 years. The average cost of Real-denominated debt is 8.2% p.a., 0.3 p.p. down on the end-of-September figure, while the average cost of foreign-currency debt (US$ + 2.6% p.a.) was 0.4 p.p. down on the average cost in September 2012. At the end of the year, 13.0% of total debt was denominated in foreign currency and, considering the FX hedge horizon, only 0.4% of this total was exposed to foreign currency risk, in line with the last quarter. Lights hedge policy consists of protecting cash flow falling due within the next 24 months (principal and interest) through the use of non-cash swap instruments with premier financial institutions.
2013 2014 2015 2016 After 2016
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153
4Q11
EBITDA
Financial Result
Taxes
Others
4Q12
Light posted Net Income of R$160.0 million in 4Q12, a 21.3% increase when compared to the Net Income of R$131.9 million in 4Q11. This is mainly due to the better operating performance, with a 49.5% EBITDA growth, partially offset by the higher Income Tax/Social Contribution Tax in light of a R$29.5 million tax benefit from the interest on equity approved in 4Q11, compared to a R$5.2 million tax benefit from the interest on equity voted in 4Q12. Excluding the portion of the purchased energy cost upturn offset in the tariff readjustment, through the creation of regulatory assets and liabilities (CVA) not recorded in the Income Statement, Adjusted Net Income would have amounted to R$247.7 million, 61.8% up on 4Q11. Excluding the impact of non-recurring effects from this quarter, Adjusted Net Income would have totaled R$189.2 million, 23.5% higher than in 4Q11. In 2012, Net Income totaled R$423.9 million, 24.0% higher than in 2011, chiefly driven by the improved operating performance in the year, with a 2.0% growth in consumption from distribution. All segments had a positive impact on the improvement of Net Income. Including the CVA, Adjusted Net Income would have totaled R$638.6 million in 2012, 59.9% higher than in 2011. Excluding the impact of non-recurring effects in 4Q12, Adjusted Net Income would have totaled R$580.1 million, 45.2% higher than in 4Q11.
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(85) 58 218
399
342
424
2011
EBITDA
Financial Result
Taxes
Others
2012
3.7 Investments
CAPEX (R$MN) Distribution Distrib. networks development Losses Others Administration Commercial./ Energy Efficiency Generation Total 2012 694.1 338.5 199.8 155.9 50.9 26.1 25.7 796.8 Partic. % 87.1% 48.8% 28.8% 22.5% 6.4% 3.3% 3.2% 100.0% 2011 774.8 384.7 184.3 205.8 61.8 2.1 89.8 928.6 Partic. % 83.4% 49.6% 23.8% 26.6% 6.7% 0.2% 9.7% 100.0% Var % -10.4% -12.0% 8.4% -24.3% -17.7% 1120.8% -71.4% -14.2%
In the year 2012, Light invested R$796.8 million, 14.2% less than in 2011. The distribution segment concentrated the largest volume R$694.1 million accounting for 87.1% of the total investment, 10.4% down on 2011. Among the investments made, R$338.5 million went to the development and expansion of distribution networks to keep pace with market growth, strengthen the network and improve quality; and R$199.8 million went to the energy loss project (network protection, electronic meters and fraud regularization).
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Investments in the underground network are recorded under distribution network and quality improvement investments. Generation investments totaled R$25.7 million in 2012, R$23.7 million of which went to upgrading and maintaining existing generating facilities, equivalent to a 71.4% decrease when compared to 2011. This variation may be explained by the beginning of operations of the Paracambi SHP in May 2012 and the reduction in demanded investments from the Lajes SHP. Investments in commercialization and energy efficiency increased from R$2.1 million in 2011 to R$26.1 million in 2012, R$25.4 million of which are related to the co-generation project for a large beverage company.
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Current Generation Park Existing Power Plants Installed Capacity (MW)* 132 380 100 187 56 74 13 942 Assured Energy (MW)* 104 335 51 115 32 (87) 40 10 600 Operation Start 1942 1953 1962 1924 1999 2008 2012 Act Date Concession / Authorization Expiration Date 2026 2026 2026 2026 2026 2033 2031
Fontes Nova Nilo Peanha Pereira Passos Ilha dos Pombos Santa Branca Elevatrias Renova SHPP Paracambi Total
Generation Capacity Expansion Projects New Projects Installed Capacity (MW)* 9 77 280 22 7 6 5 5 175 36 47 5 88 564 Assured Energy (MW)* 8 42 114 13 4 3 3 3 41 18 23 N/D 0 218 Operation Start End of 2013 1Q15 feb-15 dec-13 jan-14 feb-14 oct-13 sep-13 mar-14 jan-17 2015/2016 Concession / Authorization Expiration Date 2031 2036 2045 2032 2032 2032 2031 2046 2047 N/a N/a
SHPP Lajes HTT Itaocara Belo Monte Guanhes Dores de Guanhes Senhora do Prto Jacar Fortuna II Renova LER 2010
A-3 2011 A-5 2012
PPA Total *Light's Participation 51% Light 21,99% Light 2,49% Light
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The fourth quarter of 2012 was marked by the following events related to projects for expanding Lights generating capacity:
Lajes SHP
The basic project remains under analysis by ANEEL. The process of hiring the construction company is expected to
begin this year. Once the construction company is defined, it will be possible to begin the works, with start-up scheduled for 2015, given that the project has already been granted its installation license. The 17 MW unit will be installed in the powerhouse of the Fontes Velha hydropower plant. In addition to increasing generating capacity, the project also brings certain other benefits, such as increasing operational flexibility, upgrading supply of CEDAEs water main, controlling the Pira Rivers water level, and improving the quality of the water of the Lajes Reservoir.
Itaocara
The Itaocara Hydroelectric Development concession dates from February 2001, and it currently belongs to the syndicate comprising Itaocara Energia S.A. (51%) and Cemig Gerao e Transmisso S.A. (49%). Initially planned to generate 195 MW, the project was reviewed by the syndicate after a request by Ibama, aimed at minimizing its environmental impact, and the single plant was split into two hydroelectric power plants: Itaocara I, with 145 MW, and Itaocara II, with 50 MW. After this division, the granting power only formalized the concession of Itaocara I to the syndicate, with an expected budget of R$750 million. Currently, the UHE Itaocara syndicate is working to obtain its installation license (IL), to be issued by Ibama, with works expected to begin as of 2013.
In July 2012, the Alto Serto I wind farm complex was inaugurated in Bahia. It is Latin Americas largest complex, with 14 wind farms, 294.4 MW installed capacity and approximately R$1.2 billion in investments. In order to maintain transparency and allow the monitoring of its wind farms, Renova presented to the market the measured wind potential assessment of the 14 wind farms that traded energy at the 2009 reserve energy auction (LER 2009) and whose construction were concluded on July 28, 2012. The measured wind potential of the Alto Serto I wind farm complex totaled 746 GWh in the first six months since its conclusion, equivalent to 67% of the annual sold energy of 1,113 GWh and to 59% of the annual wind potential of the farms of 1,274 GWh.
In January 2013, Renova began to lay the concrete base of the aerogenerators of the six wind farms that traded energy on the 2010 LER, within the initial schedule and with delivery planned for September 1st, 2013, as expected by the Ministry of Mines and Energy (MME).
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During 2012, the Special Purpose Entities owning the nine wind farms that traded energy on the 2011 A-3 entered into Captive Market Energy Trading Contracts (CCEARs) with the distributors, whose supply terms are for 19 years and 10 months.
The wind farms from the 2010 LER, together with the wind farms from the 2011 A-3, comprise the Alto Serto II wind farm complex, with a 386.10 MW installed capacity, located in Bahia, in the same region where the Companys Alto Serto I wind farm complex is located.
2012 A-5:
Renova traded on the A-5 new energy auction on December 14, 2012, 10.6 average MW to be generated by the So Salvador wind farm, also located in Bahia. Thanks to the start-up of the Paracambi SHP, in May 2012, to Renovas first wind farm, in July 2012, and to Renovas operating SHPs, the Companys installed capacity, when added to Light Energias existing capacity, has increased Lights generation capacity from 855 MW to 942 MW. The installed capacity is expected to grow by 59.8% over the next years, reaching a total 1,505 MW of generation.
59.8%
22
1,505
(+) Renova
Current capacity
(+) Lajes
(+) Itaocara
(+) Renova
(+) Guanhes
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4. Cash Flow
R$ MN Cash in the Beginning of the Period (1) Net Income Social Contributions & Income Tax Net Income before Social Contributions & Income Tax Provision for Delinquency Depreciation and Amortization Loss (gain) on intangible sales / Residual value of disposals fixed asset Losses (gains) on financing exchange activities Net Interests and Monetary Variations Braslight Atualization / provisions reversal Financial Assets of the Concession Dilution of Renova's Gain Others Earning Before Taxes - Cash Basis Working Capital Contingencies Deferred Taxes Braslight Others Taxes Paid Interest Paid Cash from Operating Activities (2) Finance Obtained Dividends Loans and financing payments Financing Activities (3) Disposal of Assets/Intangible Fixed Assets/Intangible/Financial Assets Inflow/Acquisitions on Investment Dilution of Renova Investment Activities (4) Cash in the End of the Period (1+2+3+4) Cash Generation (2+3+4) 2012 772.5 423.9 (178.2) 602.1 282.6 358.4 13.9 21.6 370.5 120.1 253.0 (408.2) (15.9) 1.3 1,599.4 (271.3) (82.8) (121.1) (73.4) (157.8) (74.8) (361.3) 457.0 1,320.9 (425.1) (812.5) 83.3 4.9 (963.5) (41.3) 64.6 (935.3) 377.6 (394.9) 2011 514.1 342.0 (121.0) 463.0 251.3 359.9 6.2 18.0 342.6 126.9 64.0 1,632.1 (222.1) (100.2) (121.0) (94.5) (152.4) (128.9) (341.1) 472.0 2,364.5 (469.3) (908.6) 986.7 1.2 (929.5) (272.0) (1,200.3) 772.6 258.4
In 2012, cash flow was a negative R$394.9 million, versus cash generation of R$258.4 million last year. This result was affected by the smaller financing activity in the year. Net cash generated by operations in 2012 totaled R$457.0 million, 3.2% lower than in 2011, and before interest rates and taxes it would have amounted to R$893.1 million.
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5. Corporate Governance
On December 31, 2012, the capital stock of Light S.A. comprised 203,934,060 common shares, 97,629,463 of which were outstanding. The following chart shows Lights current shareholding structure:
BTG PACTUAL
14.29% 2.74% 28.57% 5.50% 28.57% 5.50% 75% 19.23% 25% 6.41%
SANTANDER
FIP REDENTOR
CEMIG
VOTORANTIM
BANCO DO BRASIL
28.57% 5.50%
PARATI
25.64%*
MINORITY
3.19% 0.42% 96.81% 100%
REDENTOR ENERGIA
100% 13.03%
FIP LUCE
100% 13.03%
FOREIGN
57.78%
NATIONAL
42.22%
CEMIG
26.06%
RME
13.03%
Controller Group 52,1%
LEPSA
13.03%
BNDESPAR
13.46%
MARKET
34.41%
Free Float 47,9%
On October 8, 2012, the partial extraordinary amortization of Light SESAs 5th Debenture Issue was made in the amount of R$375.0 million. The funds used in the amortization were raised by Light SESA through transactions based on Law 4,131/62, at an average cost of CDI + 0.97%, and with an average term of 3.8 years, compared to the cost of CDI + 1.50%, and a remaining average term of 1.0 year for the 5th Issue. After the prepayment, the balance of the principal dropped from R$595.2 million to R$220.2 million. On November 6, 2012, a new Renovas Shareholders Agreement was entered into between BNDES Participaes S.A. BNDESPAR, Light S.A., Light Energia S.A., RR Participaes S.A., Ricardo Lopes Delneri, and Renato do Amaral Figueiredo, having Renova as the consenting intervening party, pursuant to the terms of the Private Agreement for the Subscription of Share Deposit Certificates (Units) Issued by Renova Energia S.A. and
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Other Covenants entered into by BNDESPAR, Renova, Light Energia, Light, RR, Ricardo Delneri, and Renato Amaral, on June 22, 2012, as amended. Light S.A was selected to be part of Bovespas Corporate Sustainability Index (ISE) on November 29, for the sixth year in a row. The ISE is an index created by the BM&FBovespa in line with the Dow Jones Sustainability Index (DJSI) from the NYSE, which is aimed at identifying the companies with the best corporate sustainability practices, based on economic efficiency, environmental balance, social justice and corporate governance. The new index portfolio comprises 37 companies, which together amount to R$1.07 trillion in market value. This amount accounts for 44.81% of the total value of the companies with shares traded on the BM&FBovespa on November 29, 2012. Fitch Ratings and Standard & Poors Ratings Services, through its reports issued on December 21 and December 26, 2012, respectively, maintained the corporate ratings in local currency previously attributed to the Company. Fitch maintained the Companys and its wholly-owned subsidiaries Light SESA and Light Energia AA-(bra) Long-term National Rating, with Stable Outlook. At the same time, Fitch maintained the AA-(bra) Long-term National Rating to the second and third issue of debentures from Light Energia S.A. and to the eighth issue of debentures from Light SESA. Standard & Poors maintained Light SESAs and its fifth issue of debentures br.A+ Brazilian National Scale rating, with stable outlook.
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6. Capital Markets
Lights shares have been listed in the BM&FBovespas Novo Mercado trading segment since July 2005, therefore adhering to the best corporate governance practices and the principles of transparency and equity, in addition to granting special rights to minority shareholders. Light S.A.s shares are included in the following indices: Ibovespa, IGC (Corporate Governance Index), IEE (Electric Power Index), IBrX (Brazil Index), ISE (Corporate Sustainability Index), ITAG (Special Tag Along Stock Index) and IDIV (Dividend Index). Lights shares are also traded on the U.S. over-thecounter (OTC) market as Level 1ADRs, under the ticker LGSXY. At the end of December, Light S.A.s shares (LIGT3) were priced at R$22.32 (adjusted for shareholder payments). The Companys market cap (no. of shares x share price) closed the quarter at R$4,552 million.
BM&F BOVESPA (spot market) - LIGT3 Daily Average Number of shares traded (Thousand) Number of Transactions Traded Volume (R$ Million) Quotation per shares: (Closing)* Share Valuing (Quarter) IEE Valuing (Quarter) Ibovespa Valuing (Quarter)
*Ajusted by earnings.
The charts below give a breakdown of the Companys free float in December 2012.
Foreigners
Europe 21%
USA 63%
Foreign 58% National Legal Entities 25%
Asia 11%
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The chart below shows the performance of Lights stock between January 1st, 2012 and March 22, 2013.
-22.9% Light
Jun-12
Aug-12
Sep-12
Feb-12
Apr-12
Oct-12
Jan-12
Jan-13
May-12
Nov-12
Dec-11
Mar-12
Dec-12
Feb-13
Jul-12
Dividends
Lights dividend payment policy establishes a minimum payout equivalent to 50% of adjusted net income, calculated in compliance with article 189 of Brazilian Corporate Law and pursuant to Brazilian accounting practices and the regulations of the Brazilian Securities and Exchange Commission (CVM). On December 14, the Board of Directors approved the following: The distribution of dividends in the gross amount of R$169,877,071.98, equivalent to R$0.8330 per share, based on the result assessed from January through September 2012. The payment was made on December 27, 2012, with no tax withholding (pursuant to article 10 of Law 9,249/95); The distribution of interest on equity in the gross amount of R$15,295,054.50, equivalent to R$0.750 per share, related to fiscal year 2012. The net value per share is equivalent to R$0.06375, already net of 15% withholding income tax, except for shareholders who are exempt from such taxation. The payment date of interest on equity will be defined at a later time. Shareholders registered as such on December 17, 2012 will be entitled to this payment. On March 25, the Board of Directors approved the proposal to distribute dividends in the amount of R$91,770,327.00, or R$0.45 per share, relating to revenue reserves existing in the balance sheet of December 31,
Mar-13
40
2012. Such amount, together with those already decided in the year, is equivalent to a 86,5% payout of adjusted net income for the year and plus payments during the year lead to a dividend yield of 7.68%. The proposal will be submitted to the approval of the shareholders at an Ordinary General Meeting (OGM) to be called.
100%
100.0% 86.5%
50%
2007
2008 Payout
2009
2010
2011
2012
8.2% 4.2%
9.9% 1.7%
8.1%
8.1%
5.4% 2.4%
408 351
257 203 351 203 408 187 432 363 187 118 351 205 87 182 170 92 182 87 92
1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13
Dividends Interest on Equity Dividend Yeld*
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7. Recent Events
On January 11, 2013, the Brazilian Securities and Exchange Commission (CVM) listed the Companys subsidiary Light Energia S.A as a B-category publicly-traded company. The listing request did not include a request for IPO authorization. On January 24, 2013, ANEEL approved a tariff readjustment for Light SESAs consumers, with an average total effect equivalent to a 19.63% reduction, whereas residential consumers (low-voltage) perceived an 18.10% decrease. The tariff reduction was due to Law 12,783/2013, which promoted the renewal of energy generation and transmission concessions up to 2017, in addition to provisional measures 591/2012 and 605/2013. The main changes that allowed the decrease in bills were the reduction in the energy purchasing cost, through the allocation of energy quotas from generators that renewed their concessions, the decline in transmission costs from transmission companies that renewed their concession contracts, and the decrease in industry charges and the withdrawal of subsidies from the tariff structure. At the Extraordinary Shareholders Meeting (ESM) held on March 6, 2013, as a result of the resignation of Mr. Andr Fernandes Berenguer as an effective member of the Board of Directors, Mr. Luiz Carlos da Silva Cantidio Jnior, a Brazilian business administrator, was elected to replace him for the remainder of the term of office, i.e., up to the Annual Shareholders Meeting (ASM) that will decide on the accounts of the fiscal year ending December 31, 2013.
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8. Disclosure Program
Schedule Teleconference 03/27/2013, Wednesday, at 4:00 p.m. (Brazilian Time) and at 3:00 p.m. (NY Time), with simultaneous translation to English Access conditions: Webcast: link on site www.light.com.br/ri (portuguese and english) Conference Call - Dial number: Brazil: +55 (11) 2188 0200 EUA: +1(888)700 0802 Other countries: +1 (786) 924-6977 Access code: Light
Contact Gustavo Werneck Souza Carlos Cotrim Rodrigues Pereira Marcelle Henriques Pelajo Fabiana Almeida da Matta
Forward-looking Statements
The information on the Companys operations and its Managements expectations regarding its future performance was not reviewed by independent auditors. Statements about future events are subject to risks and uncertainties. These statements are based on beliefs and assumptions of our Management, and on information currently available to the Company. Statements about future events include information about our intentions, beliefs or current expectations, as well as of the Company's Board of Directors and Officers. Exceptions related to statements and information about the future also include information about operating results, likely or presumed, as well as statements that are preceded by, followed by, or including words such as "believes", "might", "will", "continues", "expects", "estimates", "intends", "anticipates", or similar expressions. Statements and information about the future are not a guarantee of performance. They involve risks, uncertainties and assumptions because they refer to future events, thus depending on circumstances that might or might not occur. Future results and creation of value to shareholders might significantly differ from the ones expressed or suggested by forward-looking statements. Many of the factors that will determine these results and values are beyond LIGHT S.A.'s control or forecast capacity.
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4Q12 1,994.0 (1,676.9) 357.5 317.2 397.6 (105.3) 211.9 132.3 22.2%
4Q11 1,695.9 (1,507.3) (4.1) 188.6 256.9 (62.2) 122.3 126.4 17.6%
2012 6,991.6 (6,183.5) 355.0 808.1 1,101.4 (406.2) 402.0 289.0 17.4%
2011 6,506.9 (5,825.5) (6.0) 681.4 988.4 (362.5) 319.1 264.2 17.3%
LIGHT ENERGIA Net Operating Revenue Operating Expense Other Operating Revenuess/Expenses Operating Result Equity Pickup EBITDA Financial Result Result before taxes and interest Net Income EBITDA Margin COMERCIALIZAO E SERVIOS Net Operating Revenue Operating Expense Other Operating Revenuess/Expenses Operating Result EBITDA Financial Result Result before taxes and interest Net Income EBITDA Margin
4Q12 116.5 (53.4) 5.0 63.1 (1.0) 78.9 (25.0) 37.1 26.5 67.7% 4Q12 87.2 (77.9) 0.0 9.3 9.4 (0.1) 9.2 6.2 10.8%
4Q11 90.6 (41.0) (0.3) 49.6 63.7 (17.1) 32.6 23.3 70.3% 4Q11 50.2 (46.8) 3.4 3.6 4.5 7.9 5.2 7.1%
Var. % 28.6% 30.2% 27.3% 23.8% 46.6% 14.0% 13.5% Var. % 73.6% 66.4% 170.8% 162.5% 15.9% 18.7% -
2012 440.1 (181.0) 6.6 259.1 13.8 336.4 (85.1) 187.7 133.7 76.4% 2012 291.3 (264.1) 0.0 27.1 27.8 0.2 27.3 18.5 9.5%
2011 335.8 (148.7) 0.1 187.1 244.0 (54.9) 132.2 89.7 72.7% 2011 190.2 (175.1) 15.1 15.7 5.5 20.6 13.6 8.3%
Var. % 31.1% 21.7% 7435.6% 38.5% 37.8% 55.1% 42.0% 49.1% Var. % 53.1% 50.8% 79.9% 77.0% -96.0% 32.8% 36.3% -
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4Q12 2,162.9 (1,776.4) (71.8) (8.9) (112.7) (1,366.7) (97.8) (250.8) (199.3) 361.4 (29.8) 386.5 (0.4) 483.9 (133.4) 88.7 (222.1) 252.7 (24.0) (68.7) 160.0
4Q11 1,815.1 (1,578.1) (49.0) (7.4) (105.4) (1,010.5) (86.6) (56.6) (237.8) (4.5) (20.3) 237.0 323.6 (80.8) 45.9 (126.7) 156.2 42.9 (67.3) 131.9
Var. % 19.2% 12.6% 46.6% 19.3% 6.9% 35.3% 13.0% 342.8% -16.2% 46.6% 63.1% 49.5% 65.1% 93.1% 75.3% 61.7% 2.1% 21.3%
2012 7,613.1 (6,514.0) (293.6) (25.6) (418.0) (4,534.2) (358.4) (475.2) (669.3) 375.6 (115.3) 1,099.1 (1.3) 1,456.2 (495.7) 230.9 (726.6) 602.1 (116.6) (61.6) 423.9
2011 6,944.8 (6,071.6) (247.3) (25.7) (409.2) (3,828.0) (364.6) (300.6) (794.6) (5.9) (95.6) 873.2 1,237.8 (410.2) 174.3 (584.5) 463.0 (73.0) (48.0) 342.0
Var. % 9.6% 7.3% 18.7% -0.4% 2.2% 18.4% -1.7% 58.0% -15.8% 20.6% 25.9% 17.7% 20.8% 32.5% 24.3% 30.0% 59.7% 28.3% 24.0%
( ) EBITDA as of CVM Instruction 527/2012: Net Income + Social Contributions and Income Taxes + Net Financial Result + Depreciation/Amortization (*) The consolidated financial statements include the Light S.A. and its subsidiaries and affiliates. These financial statements were eliminated from equity consolidated companies, the balances of receivables and payables, revenues and expenses between the companies.
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46
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ANNEX V
In 2012, Light changed its accounting policy regarding the recording of actuarial gains or losses related to the defined benefit pension schemes. Previously, gains or losses were immediately recognized in the income statement for the year and are now immediately recognized under other comprehensive income in shareholders equity, in accordance with CVM Deliberation 600/09. This accounting practice allows for more relevant information to be presented and will be consistent for the next fiscal years for recording actuarial gains or losses. To comply with CVM Deliberation 592/09, comparative balances were duly adjusted to reflect the change retrospectively. The impact on shareholders equity was a R$40.9 million reduction on January 1st, 2011, and a R$49.5 million decrease on December 31, 2011, versus a R$31.3 million increase in net income in fiscal year 2011. The Brazilian Securities and Exchange Commission (CVM) issued Instruction 527/12, which deals with the voluntary disclosure of non-accounting information denominated as EBITDA. This instruction is aimed at standardizing the disclosure, with a view to improving the level of understanding of this information and ensuring its comparability between publicly-traded companies. The Instruction sets forth the parameters for EBITDA calculation and the criteria for its disclosure. EBITDA will be obtained as follows: net income for the period, plus income taxes, financial expenses net of financial revenue, and depreciation, amortization and depletion. In light of such adjustments, we are presenting the reclassified results for 4Q2011 and for 2011, so as to maintain the comparability with the results presented in 2012, as shown in the following tables:
Consolidated Income Statement - R$ Million NET OPERATING REVENUE OPERATING EXPENSE Other Operating Revenue/Expenses OPERATING REVENUE EQUITY PICK-UP EBITDA FINANCIAL RESULT Other Operating Revenues/Expenses INCOME BEFORE TAXES AND INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX DEFERRED INCOME TAX NET INCOME
Published 4Q11 1,815.1 (1,573.6) 241.5 328.1 (128.2) (4.5) 108.8 59.1 (67.3) 100.6
(4.5)
47.5 4.5
(80.8) 156.2
(16.1)
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Consolidated Income Statement - R$ Million NET OPERATING REVENUE OPERATING EXPENSE Other Operating Revenue/Expenses OPERATING REVENUE EQUITY PICK-UP EBITDA FINANCIAL RESULT Other Operating Revenues/Expenses INCOME BEFORE TAXES AND INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX DEFERRED INCOME TAX NET INCOME
Published 2011 6,944.8 (6,065.7) 879.1 1,243.6 (457.7) (5.9) 415.5 (56.9) (48.0) 310.6
(5.9)
49