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Institucional 2 q14 padrão 2014 eng

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EquatorialRI

The document provides an overview of Equatorial Energia, a Brazilian electricity distribution and generation company. It discusses the company's distribution and generation segments, including its ownership of CEMAR and a majority stake in CELPA. Charts show key financial metrics like revenue, EBITDA, and investments for CEMAR and CELPA from 2004-2013. The document also reviews the turnaround efforts at CEMAR to reduce energy losses and improve operational and financial performance.

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INSTITUTIONAL PRESENTATION August, 2014
2 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex – Data
3 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
DISTRIBUTION SEGMENT GENERATION SEGMENT 4 Equatorial Overview • Distribution company in the State of Maranhão • Annual gross revenues of R$2.5 billion in 2013. • EBITDA (2013): R$ 560 million • Energy Losses (2013): 19.2% • Executed Turnaround • Thermal Generation Company, 25% owned by Equatorial; • Joint installed capacity of 331 MW; • 240 MW of energy sold at the A-3 auction in 2007; • Start-up: January 2010; • EBITDA 2013 (25%): R$ 31 million • + Opportunistic Investments • Electricity trading company and developer of new products and services • Experienced executives and well-recognized in the trading market • Market intelligence focused in new opportunities CELPA PA MA • Distribution company in the State of Pará. • Annual gross revenues of R$3.4 billion in 2013. • EBITDA (2013): R$ 113 million • Energy Losses (2013): 35.5% • Undergoing Turnaround TRADING SEGMENT
5 Ownership Structure – Current • Total no. of shares: • Share price (08.14.2014): • Free float: • ADTV90: 198,447,352 R$ 25.05 77.1% / R$3,833 MM R$ 17.871 MM ADTV90 represents the average volume traded in the past 90 days
Carlos Piani Chairman of the Board Firmino Sampaio CEO Eduardo Haiama CFO & IRO Tinn Amado Regulatory Affairs Officer Ana Marta Horta Veloso Officer Felipe Borges Officer Luis Otávio Laydner Officer Augusto Miranda Officer • Officer of Equatorial since January 2013. • Former Banco Original Legal Officer; Also worked at Ulhoa Canto Lawyers and Mattos Filho. Management • Former CEO of Equatorial and CEMAR. Currently, partner at Vinci Partners and CEO of PDG Realty. • Former CEO of Eletrobrás (1996-2001), CEO and CFO of COELBA (1984-1996); • Former member of the boards of directors of Furnas, Itaipu Binacional, CHESF, Eletrosul, Gerasul, CEMIG, ENERSUL, CEMAT and Light. • CFO and IRO of Equatorial since 2008. IRO of CEMAR since 2008; • Former UBS Pactual equity research senior analyst for the Utilities Segment. • Regulatory Affairs Officer of Equatorial since April 2008 and of CEMAR since August 2006; • Former consulting partner of Amado Consultoria; former ANEEL analyst. • Officer of Equatorial since November 2008. • Former executive at UBS Pactual and BNDES (Brazilian Development Bank); • Officer of Equatorial since May 2013. • Partner at Vinci Partners. Former executive at Banco Pactual and Esso • Officer of Equatorial since May 2013. • Currently, CEO at CEMAR since April 2010. Executive at CEMAR since 2004. Over 20 years experience in the sector having worked at COELBA.
7 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
8 Financial Performance Since 2004, Equatorial has been presenting an excellent financial performance. EBITDA (R$ million) (*) As from 2010, all values are according to IFRS (**) In 2012, CELPA’s consolidation started as from November. Consolidated Net Debt and Net Debt/EBITDA (*) R$ million / Times 2004 2005 2006 2007 2008 2009 2010 (*) 2011 2012 2013 1S14 Net Revenue 526 6 29 810 8 79 2.346 2 .506 1.799 1.981 2.987 4.715 1.325 EBITDA 85 1 89 341 3 79 784 7 57 510 504 567 586 71 % EBITDA 16% 30% 42% 43% 33% 30% 28% 25% 19% 12% 5%
9 Financial Performance Quarterly EBITDA (R$ millions) R$ (millions) 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 CELPA -377 42 -2 69 70 91 107 CEMAR 124 132 158 161 110 119 136 Geramar 12 8 8 8 7 9 9 EQUATORIAL -258 164 153 228 175 231 242 * Geramar presented on a pro forma basis, since it is no longer consolidated in Equatorial.
10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Consolidated Dividends (R$ MM) - 54 1 08 151 284 51 1 97 50 3 7 1 8 CEMAR - 54 1 08 112 91 58 2 00 94 7 6 3 8 Light - - - 27 111 56 - - - - Capital Reduction (holding) - - - - 82 - - - - - Net Income (R$ MM) 123 2 29 1 19 153 300 207 1 89 160 141 69 CEMAR (31) 234 1 16 117 148 129 2 79 248 385 192 Celpa - - - - - - - - (160) (229) Geramar - - - - - - 6 1 1 18 - Equatorial Soluções - - - - - - - - 3 7 Light - - - - 130 79 - - - - The Consolidated div idends incorporate 100% of CEMAR 2004 2005 2006 2007 2008* 2009 2010 2011 2012 2013 Payout 0% 24% 90% 99% 95% 25% 104% 32% 26% 26% Dividend Yield N/A N/A 10% 13% 27% 3% 18% 4% 2% 0% Distributions to Shareholders/Net Income R$ million Financial Performance * 2008 figure includes R$82 million in Capital Reduction
11 Financial Performance made a longer debt amortization schedule possible… Debt Amortization Schedule - R$ MM Short Term 2015 2016 2017 2018 After 2018 Total CEMAR 447 1 52 2 05 186 217 458 1 .665 Celpa 395 1 85 11 10 8 1.077 1 .686 Total 842 3 37 2 16 196 225 1.535 3 .351
12 Investments and a significant increase in investments. Investments - R$ MM 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1S14 CEMAR 70 232 306 394 465 419 399 497 619 325 173 Celpa - - - - - - - - 42 421 326 Light - - - - 137 141 - - - - - Geramar - - - - 24 107 16 0,4 0,4 0,1 0,0 Total 70 232 306 394 626 667 415 497 661 746 211
13 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
14 CEMAR and CELPA comparison PA MA CEMAR 2004 2013 Energy Sold GWh 2.593 5.288 Net Revenues R$ MM 495 1 .969 PMSO R$ MM 127 367 PDA + Contingencies R$ MM 47 59 Accounting Ebitda R$ MM 93 4 94 Regulatory EBITDA R$ MM 93 5 60 Net Income R$ MM (31) 192 Dividends R$ MM - 38 Net Debt R$ MM 362 870 Net Debt / Reg. EBITDA times 3,9 1,6 Clients '000 1.161 2.126 PMSO/Client R$/Client 109 173 EBITDA/Client R$/Client 80 2 32 DEC (*) Hours/Year/Client 63,4 18,9 FEC (*) Times/Year/Client 39,3 10,9 Total Losses (*) % 29,9% 19,2% CAPEX R$ MM 45 2 96 PLPT (**) R$ MM 25 29 (*) Last 12 months (**) Light For All Program (***) Values according to IFRS CELPA 2012 2013 Energy Sold GWh 6.383 7.250 Net Revenues R$ MM 2.350 2.495 PMSO R$ MM 1.069 769 Non-manageable costs R$ MM 1.233 1.049 Accounting Ebitda R$ MM -369 113 Regulatory EBITDA R$ MM -344 113 Net Income R$ MM -697 -229 Net Debt R$ MM 1.219 961 Net Debt / Reg. EBITDA R$ MM N/A 8,5 Clients '000 1.931 2.031 PMSO / Client R$ / Client 553 379 EBITDA/Client R$ / Client N/A 56 DEC (*) Horas / Ano / Cons. 101,6 73,5 FEC (*) Vezes / Ano / Cons. 50,9 3 8,0 Total Losses (*) % 35,0% 35,5% CAPEX R$ MM 433 361 PLPT (**) R$ MM 46 6 1
15 Highlights (CEMAR) Required Energy 3,551 6,553 (GWh) CAGR 7,0% 2004 2013 2,593 5,288 CAGR 8,2% 2004 2013 836 CAGR 12,0% 1,121 2,069 2005 2009 2013 1,161 2,126 CAGR 7,0% 2004 2013 Billed Energy (GWh) Number of Clients (‘000) Net RAB (R$ million)
16 Highlights (CELPA) 5,736 11,291 CAGR 7,8% 2004 2013 4,440 7,250 CAGR 5,6% 2004 2013 1,263 2,031 CAGR 5,4% 2004 2013 CAGR 7,4% 829 889 1,472 2003 2007 2011 Required Energy (GWh) Billed Energy (GWh) Number of Clients (‘000) Net RAB (R$ million)
17 CEMAR: Energy Losses
18 Celpa: Energy Losses
102 72 73 64 55 39 39 40 42 27 28 29 30 30 31 18 21 22 22 22 23 24 19 12 12 14 9 COELCE SULGIPE ENERSUL COSERN CEB CEMAR 2013 CEMAR 2011 CEMAR 2012 CEMAR 2010 CELPE COELBA CEMAR 2009 CEMAR 2008 CHESP CEMAR 2007 CEPISA CEMAT CEAL CELTINS CERON CELG CEMAR 2006 CEMAR 2005 CEMAR 2004 ELETROACRE CELPA 2013 CELPA 2012 DEC (hours) 51 47 38 39 37 32 33 26 23 23 25 20 15 16 17 18 16 14 11 11 12 8 9 9 9 8 5 COELCE ENERSUL CELPE COSERN COELBA SULGIPE CEMAR 2013 CEMAR 2012 CEMAR 2011 CEMAR 2010 CEMAR 2009 CEB CEAL CEMAR 2008 CELTINS CEMAR 2007 CEPISA CEMAT CEMAR 2006 CELG CERON CEMAR 2005 CHESP CELPA 2013 CEMAR 2004 ELETROACRE CELPA 2012 FEC (times) 19 CEMAR and CELPA: DEC/FEC 2013 Evolution Comparison BETTER In 2004, CEMAR was the worst in quality indicators. In 2013, according to ANEEL, it was the 3rd best, in terms of adherence to regulatory targets.
20 CEMAR Turnaround – First Steps VISION Be the best and most profitable distribution company in Brazil. MISSION Distribute electricity with quality to promote the development of Maranhão. VALUES Focus in Human Resources Meritocracy Obsession to Profit Dedication to the Client Ethics and Integrity Safety Transparency CEMAR’s Issues before the acquisition: • Previous controllers requested bankruptcy protection; • High indebtedness, including unpaid energy purchase, amounting to R$820 million; • Very low operating margin; • Worst quality indicators in Brazil; • Unmotivated employees and managers, lacking skills to face new challenges; • Main sector players did not show any interest in acquiring the company.
21 CEMAR Turnaround FIRST TURNAROUND WAVE Reestructuring based on 8 macro initiatives Recruiting of New Talents; Variable Compensation; Operational Reestructuring; New Investments; Client Satisfaction; New IT Infrastructure; Financial Discipline; Result-oriented Management. MA RS SC AP PR SP MG GO MT AC AM RR RO PI BA MA PA TO CE RN PE AL SE MS RJ ES DF PB
22 CEMAR Turnaround GESTÃO DE RESULTADOS SETTING CLEAR GOALS FOR THE COMPANY AND EVERY SINGLE EMPLOYEE INVOLVED PARTIES NEEDS INVOLVED PARTIES SATISFACTION Participatory Management Meritocracy Financial recognition for achieved goals
23 CEMAR – Results Matrix Management / Budgeting Company Areas Expenses Packages
24 CEMAR Turnaround SECOND TURNAROUND WAVE Productivity Gains; Focus on People; Result-Oriented Management; Focus on Safety; Energy Losses Reduction; Client Relationship – Improving the Company’s Image; Improvement in Third Party Management; Quality Improvement. MA RS SC AP PR SP MG GO MT AC AM RR RO PI BA MA PA TO CE RN PE AL SE MS RJ ES DF PB
25 CEMAR – Understanding Energy Losses 84,5% MUNICIPALITY WEIGHT MHW SÃO LUÍS 45,2% 374.456 MIRANDA 24,0% 198.472 IMPERATRIZ 15,3% 126.857 P. DUTRA 4,9% 40.335 PERITORÓ 4,8% 39.521 CEPISA 2,8% 23.098 COELHO NETO 2,5% 20.387 TOTAL 99,4% 823.126
26 Energy Losses (2008) 16.15% 29.24% 28.18% 11.78% 1.83% 0.74% 0.12% 0.92% 1.06% 13.09% 0.76% CEMAR – Understanding Energy Losses
27 CEMAR Turnaround – Reducing Energy Losses Structuring Actions 1) Regularize costumers with quick-fixes (“gambiarras”); 2) Inspect and update the public lighting data; 3) Install and check the fiscal measurement; 4) Regularize clandestine clients; 5) Assure every client has a metering; 6) Reduce cut off and disconnected clients in the commercial system; 7) Recall of malfunctioning metering; 8) Check clients being billed by the minimum; 9) Check the Technical Losses percentage; Maintenance Actions 1) Structure the energy losses matrix; 2) Structure the Unregistered Consumption (“CNR”) treatment; 3) Avoid administrative losses from the billing system; 4) Assure the Energy Balance operation; 5) Recover metering equipment; 6) Weekly meetings to measure the results of the loss combating initiatives.
28 CEMAR Turnaround – Reducing Energy Losses Amount of Actions (in ‘000s) 2008 2009 2010 2011 2012 2013* Gambiarras Clandestinos DS LD Recall Minimo 91 390 531 623 708 252 Quick-fix (“gambiarra”) Clandestine Minimum
29 CEMAR Turnaround FOCUS ON PEOPLE CLIENT RELATIONSHIP Currently, 93% of CEMAR’s Leadership Team is made of people that were internally promoted RELATIONSHIP VISIT • Visit the client and inform about the debt before cutting its power; • Respect and good relationship with the clients. IMMEDIATE BILLING • Improved billing quality; • Measuring and delivery on time; • Client can follow the whole process. First and only company from Maranhão to be in the list of best places to work in Brazil, being part of the ranking for the third time in a row. 2011 – 92nd Place 2012 – 32nd Place 2013 – 21st Place
30 CEMAR Turnaround THIRD PARTIES MANAGEMENT Project Safety Management System; Integration – Training Team Leaders; Legal Sustainability Project; Management Excellence Program MANAGEMENT EXCELLENCE PROGRAM CEMAR’s SUPPLIERS • The Program pillars are aimed at developing and standardize all third parties: Operational Management; Safety; Supply Management; Environment; Social Responsibility Financial Administrative, and; Accounting. COI INTEGRATED OPERATIONAL CENTER Maranhão Area: 332,000 km² Pop.: 6.7 million Dens.: 20 pp/km² • Integration of IT Systems and Teams; • Productivity Gains • Modernization.
31 Overcoming Challenging Situations– CEMAR and CELPA CEMAR CELPA
32 CELPA Turnaround – Main Issues and Initiatives Complexity of the concession area Innefficient operational management Management model, based on the experience in CEMAR; Variable compensation linked to clear goals IT Systems Telecommunications Geo-referencing the operating assets Best Practices shared between CEMAR and CELPA Misunderstanding of the regulatory rules Review of the regulatory parameters Priority ranking for the Capex Asset Base complete analysis High Energy Losses Energy Losses Reduction Plan Poor collection rate Collection in Focus Very high financial leverage Debt Reestructuring: Judicial Recovery concluded in Sep-12 Awful Quality Indicators Quality Improvement in focus Inadequate Structure and Procurement Joint procurement and IT infrastructure Voluntary Dismissal Plan
33 Geramar: Ownership Structure
34 Geramar: Highlights • Two thermoelectric power plants fueled by high-viscosity heavy oil. • Location: Miranda do Norte, Maranhão. • Joint installed capacity of 331 MW. • 240 MW of energy sold at the A-3 auction in 2007. • Total fixed annual revenue (for both plants) of R$ 136 million* (in R$ of 2007), during 15 years. *Revenues adjusted by inflation (IPCA) • Start-up: January of 2010 • Total CAPEX: R$ 550 million. • Equatorial’s share of CAPEX (25%): R$137 million. Equity = approximately R$45 million.
35 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex – Data
36 Financial strength and solid management team with turnaround experience Growth prospects and consolidation opportunities Result-oriented management model High level of Corporate Governance Value Creation
37 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
2,686 GWh 38 CEMAR: Highlights MA PI AP Distribution company in the State of Maranhão 2.1 million clients (4th largest in the Northeast region)* Billed energy (2Q14): 2,686 GWh Annual gross revenues of R$ 2.5 billion in 2013. Energy Sales (2Q14) Clients (2Q14) 2.1 million *Source: ABRADEE RS SC PR SP MG GO MT AC AM RR RO BA MA PA TO CE RN PE AL SE MS RJ ES DF PB 49.0% 21.3% 21.0% 8.8% Residential Industrial Commercial Others 88.9% 6.6% 4.1% 0.4% Residential Industrial Commercial Others
39 CEMAR: History CEMAR under control of Equatorial 1958- Jun. 2000 Aug.2000- Aug.2002 Aug.2002-May 2004 May 2004- Present State owned CEMAR under PPL Global’s control ANEEL’s intervention
40 CEMAR: Ownership Structure Eletrobras Equatorial Energia Others 33.6% 65.1% 1.3% CEMAR
41 Tariff Review Results CEMAR 2005 2009 2013 Gross RAB 1.756 2 .247 3 .309 Net RAB 836 1 .121 2 .069 Operating Costs 2 18 2 78 4 28 Regulatory Depreciation 6 8 1 02 1 25 Regulatory EBITDA 157 2 71 3 41 CAIMI - - 45 Regulatory Losses (12-month) 28,0% 25,6% 19,6% Deliquency Rate 0,5% 0,9% 0,94% X Factor (ex-ante) 1,19% 1,06% 2,76% *All values are nominal and in R$ million.
42 CEMAR: Distribution CEMAR 2004 2005 2006 2007 2008 2009 2010 1S11 (***) 2011 (***) 2012 2013 1S14 Energy Sold GWh 2,593 2 ,793 2 ,917 3 ,223 3 ,347 3 ,566 4,146 2 ,069 4 ,379 4,804 5 ,288 2 ,686 Net Revenues R$ MM 495 6 65 8 10 8 79 9 99 1 ,148 1,756 857 1 ,912 2,348 1 ,969 1 ,001 PMSO R$ MM 127 1 26 1 29 1 26 1 39 1 71 245 1 35 2 91 321 3 67 1 66 PDA + Contingencies R$ MM 47 2 0 1 4 3 0 3 2 3 3 68 2 2 4 6 69 5 9 1 8 Accounting Ebitda R$ MM 93 1 89 3 41 3 79 4 15 4 70 500 2 26 4 82 533 4 94 89 Regulatory EBITDA R$ MM 93 1 89 3 41 3 79 4 15 4 70 500 - 4 70 496 5 60 2 56 Net Income R$ MM (31) 3 59 1 77 2 22 2 27 1 98 279 1 21 2 48 385 1 92 9 Dividends R$ MM - 85 1 65 1 72 1 40 58 2 00 - 94 76 3 8 - Net Debt R$ MM 362 3 05 2 91 4 21 6 73 7 68 759 9 94 8 98 1 ,102 870 7 69 Net Debt / Reg. EBITDA times 3.9 1 .6 0 .8 1 .1 1 .6 1 .6 1.5 2 .1 1 .9 2.2 1 .6 3 .0 Clients '000 1,161 1 ,254 1 ,349 1 ,438 1 ,535 1 ,688 1,822 1 ,884 1 ,939 2,037 2 ,126 2 ,167 PMSO/Client R$/Client 109 1 01 95 8 8 9 0 1 01 134 71 1 50 158 1 73 77 EBITDA/Client R$/Client 80 1 50 2 53 2 64 2 70 2 78 274 1 20 2 49 262 2 32 41 DEC (*) Hours/Year/Client 63.4 5 4.6 4 2.6 2 8.7 2 7.3 2 3.6 21.8 1 9.6 2 1.4 21.7 1 8.9 1 6.1 FEC (*) Times/Year/Client 39.3 3 2.9 2 4.6 1 9.8 1 6.8 1 5.2 14.1 1 1.5 1 1.6 11.0 1 0.9 1 0.7 Total Losses (*) % 29.9% 29.5% 29.8% 28.7% 28.9% 25.2% 22.0% 21.4% 21.0% 20.7% 19.2% 17.8% CAPEX R$ MM 45 1 03 1 37 1 99 2 78 2 39 197 1 06 3 22 441 2 96 1 32 PLPT (**) R$ MM 25 1 29 1 69 1 95 1 87 1 80 202 85 1 75 178 29 4 1 (*) Last 12 months (**) Light For All Program (***) Values according to IFRS
3,676 GWh 43 Celpa: Highlights PI AP Distribution company in the State of Pará 2.1 million clients Billed energy (1S14): 3,676 GWh Annual gross revenues of R$ 3.4 billion in 2013. Energy Sales (1S14) Clients (1S14) 2.1 million RS SC PR SP MG GO MT AC AM RR RO BA MA PA TO CE RN PE AL SE MS RJ ES DF PB PA PA 43.0% 17.4% 22.3% 17.3% Residential Industrial Commercial Others 85.8% 6.5% 7.5% 0.2% Residential Industrial Commercial Others
44 Celpa: History Celpa under Equatorial’s control 1962-Jul.1998 Jul.1998- Oct.2012 Nov.2012- Present State owned Celpa under Grupo Rede’s control Feb. 2012 Celpa’s Judicial Recovery Filing
45 Celpa: Ownership Structure Equatorial Energia CELPA - Centrais Elétricas do Pará S.A. 96.4% VC 96.2% TC Minorities (free float) 3.6% VC 3.8% TC
46 Tariff Review Results CELPA (in R$ million) 2011 Gross RAB 2.338 Net RAB 1.472 Operating Costs (starting point) 429 Operating Costs (upper limit) 352 Regulatory Depreciation 95 Regulatory EBITDA 253 Deliquency Rate (% GOR) 1.0% X Factor (ex-ante) 2.42% Regulatory Losses* 41,55%-34,00% *Non-technical over low voltage market
• 2.1 million clients in 144 municipalities, covering the whole state of 47 Pará (total area 1,247,955 km²) • Energy sales reached 3,676 GWh in 1S14, 13.4% higher than 1S13’s figures. • In 2Q14, energy losses from the last 12 months represented 33.0% of required energy, 3.4 p.p. lower than the 36.4% recorded in 1S13. • In 2Q14, DEC and FEC for Celpa (accumulated over the last 12 mo nths) were 56.7 hours, down 34.4%, and 31.5 times, a 30.7% decrease when compared to indices observed at the end of 1S13. • More than 352 thousand clients connected through the Light for All Program. CELPA: Distribution CELPA 2012 2013 1S14 Energy Sold GWh 6,383 7,250 3,676 Net Revenues R$ MM 2,350 2,495 1,504 PMSO R$ MM 1,069 769 310 Non-manageable costs R$ MM 1,233 1,049 1,252 Accounting Ebitda R$ MM (369) 113 (58) Regulatory EBITDA R$ MM (344) 113 250 Net Income R$ MM (697) (229) (227) Net Debt R$ MM 1,219 961 650 Net Debt / Reg. EBITDA R$ MM N/A 8.5 2 .6 Clients '000 1,931 2,031 2,106 EBITDA/Client R$ / Clients N/A 56 (28) DEC (*) Hours / Year / Cons. 101.6 73.5 5 6.7 FEC (*) Times / Year / Cons. 50.9 3 8.0 3 1.5 Total Losses (*) % 35.0% 35.5% 33.0% CAPEX R$ MM 433 361 245 PLPT (**) R$ MM 46 6 1 8 0 (*) Includes Construction Costs/Rev enues (**) Last 12 months (***) Light For All Program All v alues are in accordance with IFRS
48 Eduardo Haiama CFO and IRO Thomas Newlands Investor Relations Renato Parentoni Investor Relations Phone 1: 55 21 3206-6635 Phone 2: 55 21 3206-6607 E-mail: ir@equatorialenergia.com.br Website: http://www.equatorialenergia.com.br/ir Contacts
► 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 intensions or expectations for our clients. ► 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 prevented 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. Such estimates refer only to the date in which they were expressed, therefore the Company has no obligation to update said statements. ► This presentation does not consist of offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not consist of a contract base or commitment of any kind. 49 Disclaimer

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Institucional 2 q14 padrão 2014 eng

  • 2. 2 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex – Data
  • 3. 3 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
  • 4. DISTRIBUTION SEGMENT GENERATION SEGMENT 4 Equatorial Overview • Distribution company in the State of Maranhão • Annual gross revenues of R$2.5 billion in 2013. • EBITDA (2013): R$ 560 million • Energy Losses (2013): 19.2% • Executed Turnaround • Thermal Generation Company, 25% owned by Equatorial; • Joint installed capacity of 331 MW; • 240 MW of energy sold at the A-3 auction in 2007; • Start-up: January 2010; • EBITDA 2013 (25%): R$ 31 million • + Opportunistic Investments • Electricity trading company and developer of new products and services • Experienced executives and well-recognized in the trading market • Market intelligence focused in new opportunities CELPA PA MA • Distribution company in the State of Pará. • Annual gross revenues of R$3.4 billion in 2013. • EBITDA (2013): R$ 113 million • Energy Losses (2013): 35.5% • Undergoing Turnaround TRADING SEGMENT
  • 5. 5 Ownership Structure – Current • Total no. of shares: • Share price (08.14.2014): • Free float: • ADTV90: 198,447,352 R$ 25.05 77.1% / R$3,833 MM R$ 17.871 MM ADTV90 represents the average volume traded in the past 90 days
  • 6. Carlos Piani Chairman of the Board Firmino Sampaio CEO Eduardo Haiama CFO & IRO Tinn Amado Regulatory Affairs Officer Ana Marta Horta Veloso Officer Felipe Borges Officer Luis Otávio Laydner Officer Augusto Miranda Officer • Officer of Equatorial since January 2013. • Former Banco Original Legal Officer; Also worked at Ulhoa Canto Lawyers and Mattos Filho. Management • Former CEO of Equatorial and CEMAR. Currently, partner at Vinci Partners and CEO of PDG Realty. • Former CEO of Eletrobrás (1996-2001), CEO and CFO of COELBA (1984-1996); • Former member of the boards of directors of Furnas, Itaipu Binacional, CHESF, Eletrosul, Gerasul, CEMIG, ENERSUL, CEMAT and Light. • CFO and IRO of Equatorial since 2008. IRO of CEMAR since 2008; • Former UBS Pactual equity research senior analyst for the Utilities Segment. • Regulatory Affairs Officer of Equatorial since April 2008 and of CEMAR since August 2006; • Former consulting partner of Amado Consultoria; former ANEEL analyst. • Officer of Equatorial since November 2008. • Former executive at UBS Pactual and BNDES (Brazilian Development Bank); • Officer of Equatorial since May 2013. • Partner at Vinci Partners. Former executive at Banco Pactual and Esso • Officer of Equatorial since May 2013. • Currently, CEO at CEMAR since April 2010. Executive at CEMAR since 2004. Over 20 years experience in the sector having worked at COELBA.
  • 7. 7 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
  • 8. 8 Financial Performance Since 2004, Equatorial has been presenting an excellent financial performance. EBITDA (R$ million) (*) As from 2010, all values are according to IFRS (**) In 2012, CELPA’s consolidation started as from November. Consolidated Net Debt and Net Debt/EBITDA (*) R$ million / Times 2004 2005 2006 2007 2008 2009 2010 (*) 2011 2012 2013 1S14 Net Revenue 526 6 29 810 8 79 2.346 2 .506 1.799 1.981 2.987 4.715 1.325 EBITDA 85 1 89 341 3 79 784 7 57 510 504 567 586 71 % EBITDA 16% 30% 42% 43% 33% 30% 28% 25% 19% 12% 5%
  • 9. 9 Financial Performance Quarterly EBITDA (R$ millions) R$ (millions) 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 CELPA -377 42 -2 69 70 91 107 CEMAR 124 132 158 161 110 119 136 Geramar 12 8 8 8 7 9 9 EQUATORIAL -258 164 153 228 175 231 242 * Geramar presented on a pro forma basis, since it is no longer consolidated in Equatorial.
  • 10. 10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Consolidated Dividends (R$ MM) - 54 1 08 151 284 51 1 97 50 3 7 1 8 CEMAR - 54 1 08 112 91 58 2 00 94 7 6 3 8 Light - - - 27 111 56 - - - - Capital Reduction (holding) - - - - 82 - - - - - Net Income (R$ MM) 123 2 29 1 19 153 300 207 1 89 160 141 69 CEMAR (31) 234 1 16 117 148 129 2 79 248 385 192 Celpa - - - - - - - - (160) (229) Geramar - - - - - - 6 1 1 18 - Equatorial Soluções - - - - - - - - 3 7 Light - - - - 130 79 - - - - The Consolidated div idends incorporate 100% of CEMAR 2004 2005 2006 2007 2008* 2009 2010 2011 2012 2013 Payout 0% 24% 90% 99% 95% 25% 104% 32% 26% 26% Dividend Yield N/A N/A 10% 13% 27% 3% 18% 4% 2% 0% Distributions to Shareholders/Net Income R$ million Financial Performance * 2008 figure includes R$82 million in Capital Reduction
  • 11. 11 Financial Performance made a longer debt amortization schedule possible… Debt Amortization Schedule - R$ MM Short Term 2015 2016 2017 2018 After 2018 Total CEMAR 447 1 52 2 05 186 217 458 1 .665 Celpa 395 1 85 11 10 8 1.077 1 .686 Total 842 3 37 2 16 196 225 1.535 3 .351
  • 12. 12 Investments and a significant increase in investments. Investments - R$ MM 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1S14 CEMAR 70 232 306 394 465 419 399 497 619 325 173 Celpa - - - - - - - - 42 421 326 Light - - - - 137 141 - - - - - Geramar - - - - 24 107 16 0,4 0,4 0,1 0,0 Total 70 232 306 394 626 667 415 497 661 746 211
  • 13. 13 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
  • 14. 14 CEMAR and CELPA comparison PA MA CEMAR 2004 2013 Energy Sold GWh 2.593 5.288 Net Revenues R$ MM 495 1 .969 PMSO R$ MM 127 367 PDA + Contingencies R$ MM 47 59 Accounting Ebitda R$ MM 93 4 94 Regulatory EBITDA R$ MM 93 5 60 Net Income R$ MM (31) 192 Dividends R$ MM - 38 Net Debt R$ MM 362 870 Net Debt / Reg. EBITDA times 3,9 1,6 Clients '000 1.161 2.126 PMSO/Client R$/Client 109 173 EBITDA/Client R$/Client 80 2 32 DEC (*) Hours/Year/Client 63,4 18,9 FEC (*) Times/Year/Client 39,3 10,9 Total Losses (*) % 29,9% 19,2% CAPEX R$ MM 45 2 96 PLPT (**) R$ MM 25 29 (*) Last 12 months (**) Light For All Program (***) Values according to IFRS CELPA 2012 2013 Energy Sold GWh 6.383 7.250 Net Revenues R$ MM 2.350 2.495 PMSO R$ MM 1.069 769 Non-manageable costs R$ MM 1.233 1.049 Accounting Ebitda R$ MM -369 113 Regulatory EBITDA R$ MM -344 113 Net Income R$ MM -697 -229 Net Debt R$ MM 1.219 961 Net Debt / Reg. EBITDA R$ MM N/A 8,5 Clients '000 1.931 2.031 PMSO / Client R$ / Client 553 379 EBITDA/Client R$ / Client N/A 56 DEC (*) Horas / Ano / Cons. 101,6 73,5 FEC (*) Vezes / Ano / Cons. 50,9 3 8,0 Total Losses (*) % 35,0% 35,5% CAPEX R$ MM 433 361 PLPT (**) R$ MM 46 6 1
  • 15. 15 Highlights (CEMAR) Required Energy 3,551 6,553 (GWh) CAGR 7,0% 2004 2013 2,593 5,288 CAGR 8,2% 2004 2013 836 CAGR 12,0% 1,121 2,069 2005 2009 2013 1,161 2,126 CAGR 7,0% 2004 2013 Billed Energy (GWh) Number of Clients (‘000) Net RAB (R$ million)
  • 16. 16 Highlights (CELPA) 5,736 11,291 CAGR 7,8% 2004 2013 4,440 7,250 CAGR 5,6% 2004 2013 1,263 2,031 CAGR 5,4% 2004 2013 CAGR 7,4% 829 889 1,472 2003 2007 2011 Required Energy (GWh) Billed Energy (GWh) Number of Clients (‘000) Net RAB (R$ million)
  • 19. 102 72 73 64 55 39 39 40 42 27 28 29 30 30 31 18 21 22 22 22 23 24 19 12 12 14 9 COELCE SULGIPE ENERSUL COSERN CEB CEMAR 2013 CEMAR 2011 CEMAR 2012 CEMAR 2010 CELPE COELBA CEMAR 2009 CEMAR 2008 CHESP CEMAR 2007 CEPISA CEMAT CEAL CELTINS CERON CELG CEMAR 2006 CEMAR 2005 CEMAR 2004 ELETROACRE CELPA 2013 CELPA 2012 DEC (hours) 51 47 38 39 37 32 33 26 23 23 25 20 15 16 17 18 16 14 11 11 12 8 9 9 9 8 5 COELCE ENERSUL CELPE COSERN COELBA SULGIPE CEMAR 2013 CEMAR 2012 CEMAR 2011 CEMAR 2010 CEMAR 2009 CEB CEAL CEMAR 2008 CELTINS CEMAR 2007 CEPISA CEMAT CEMAR 2006 CELG CERON CEMAR 2005 CHESP CELPA 2013 CEMAR 2004 ELETROACRE CELPA 2012 FEC (times) 19 CEMAR and CELPA: DEC/FEC 2013 Evolution Comparison BETTER In 2004, CEMAR was the worst in quality indicators. In 2013, according to ANEEL, it was the 3rd best, in terms of adherence to regulatory targets.
  • 20. 20 CEMAR Turnaround – First Steps VISION Be the best and most profitable distribution company in Brazil. MISSION Distribute electricity with quality to promote the development of Maranhão. VALUES Focus in Human Resources Meritocracy Obsession to Profit Dedication to the Client Ethics and Integrity Safety Transparency CEMAR’s Issues before the acquisition: • Previous controllers requested bankruptcy protection; • High indebtedness, including unpaid energy purchase, amounting to R$820 million; • Very low operating margin; • Worst quality indicators in Brazil; • Unmotivated employees and managers, lacking skills to face new challenges; • Main sector players did not show any interest in acquiring the company.
  • 21. 21 CEMAR Turnaround FIRST TURNAROUND WAVE Reestructuring based on 8 macro initiatives Recruiting of New Talents; Variable Compensation; Operational Reestructuring; New Investments; Client Satisfaction; New IT Infrastructure; Financial Discipline; Result-oriented Management. MA RS SC AP PR SP MG GO MT AC AM RR RO PI BA MA PA TO CE RN PE AL SE MS RJ ES DF PB
  • 22. 22 CEMAR Turnaround GESTÃO DE RESULTADOS SETTING CLEAR GOALS FOR THE COMPANY AND EVERY SINGLE EMPLOYEE INVOLVED PARTIES NEEDS INVOLVED PARTIES SATISFACTION Participatory Management Meritocracy Financial recognition for achieved goals
  • 23. 23 CEMAR – Results Matrix Management / Budgeting Company Areas Expenses Packages
  • 24. 24 CEMAR Turnaround SECOND TURNAROUND WAVE Productivity Gains; Focus on People; Result-Oriented Management; Focus on Safety; Energy Losses Reduction; Client Relationship – Improving the Company’s Image; Improvement in Third Party Management; Quality Improvement. MA RS SC AP PR SP MG GO MT AC AM RR RO PI BA MA PA TO CE RN PE AL SE MS RJ ES DF PB
  • 25. 25 CEMAR – Understanding Energy Losses 84,5% MUNICIPALITY WEIGHT MHW SÃO LUÍS 45,2% 374.456 MIRANDA 24,0% 198.472 IMPERATRIZ 15,3% 126.857 P. DUTRA 4,9% 40.335 PERITORÓ 4,8% 39.521 CEPISA 2,8% 23.098 COELHO NETO 2,5% 20.387 TOTAL 99,4% 823.126
  • 26. 26 Energy Losses (2008) 16.15% 29.24% 28.18% 11.78% 1.83% 0.74% 0.12% 0.92% 1.06% 13.09% 0.76% CEMAR – Understanding Energy Losses
  • 27. 27 CEMAR Turnaround – Reducing Energy Losses Structuring Actions 1) Regularize costumers with quick-fixes (“gambiarras”); 2) Inspect and update the public lighting data; 3) Install and check the fiscal measurement; 4) Regularize clandestine clients; 5) Assure every client has a metering; 6) Reduce cut off and disconnected clients in the commercial system; 7) Recall of malfunctioning metering; 8) Check clients being billed by the minimum; 9) Check the Technical Losses percentage; Maintenance Actions 1) Structure the energy losses matrix; 2) Structure the Unregistered Consumption (“CNR”) treatment; 3) Avoid administrative losses from the billing system; 4) Assure the Energy Balance operation; 5) Recover metering equipment; 6) Weekly meetings to measure the results of the loss combating initiatives.
  • 28. 28 CEMAR Turnaround – Reducing Energy Losses Amount of Actions (in ‘000s) 2008 2009 2010 2011 2012 2013* Gambiarras Clandestinos DS LD Recall Minimo 91 390 531 623 708 252 Quick-fix (“gambiarra”) Clandestine Minimum
  • 29. 29 CEMAR Turnaround FOCUS ON PEOPLE CLIENT RELATIONSHIP Currently, 93% of CEMAR’s Leadership Team is made of people that were internally promoted RELATIONSHIP VISIT • Visit the client and inform about the debt before cutting its power; • Respect and good relationship with the clients. IMMEDIATE BILLING • Improved billing quality; • Measuring and delivery on time; • Client can follow the whole process. First and only company from Maranhão to be in the list of best places to work in Brazil, being part of the ranking for the third time in a row. 2011 – 92nd Place 2012 – 32nd Place 2013 – 21st Place
  • 30. 30 CEMAR Turnaround THIRD PARTIES MANAGEMENT Project Safety Management System; Integration – Training Team Leaders; Legal Sustainability Project; Management Excellence Program MANAGEMENT EXCELLENCE PROGRAM CEMAR’s SUPPLIERS • The Program pillars are aimed at developing and standardize all third parties: Operational Management; Safety; Supply Management; Environment; Social Responsibility Financial Administrative, and; Accounting. COI INTEGRATED OPERATIONAL CENTER Maranhão Area: 332,000 km² Pop.: 6.7 million Dens.: 20 pp/km² • Integration of IT Systems and Teams; • Productivity Gains • Modernization.
  • 31. 31 Overcoming Challenging Situations– CEMAR and CELPA CEMAR CELPA
  • 32. 32 CELPA Turnaround – Main Issues and Initiatives Complexity of the concession area Innefficient operational management Management model, based on the experience in CEMAR; Variable compensation linked to clear goals IT Systems Telecommunications Geo-referencing the operating assets Best Practices shared between CEMAR and CELPA Misunderstanding of the regulatory rules Review of the regulatory parameters Priority ranking for the Capex Asset Base complete analysis High Energy Losses Energy Losses Reduction Plan Poor collection rate Collection in Focus Very high financial leverage Debt Reestructuring: Judicial Recovery concluded in Sep-12 Awful Quality Indicators Quality Improvement in focus Inadequate Structure and Procurement Joint procurement and IT infrastructure Voluntary Dismissal Plan
  • 34. 34 Geramar: Highlights • Two thermoelectric power plants fueled by high-viscosity heavy oil. • Location: Miranda do Norte, Maranhão. • Joint installed capacity of 331 MW. • 240 MW of energy sold at the A-3 auction in 2007. • Total fixed annual revenue (for both plants) of R$ 136 million* (in R$ of 2007), during 15 years. *Revenues adjusted by inflation (IPCA) • Start-up: January of 2010 • Total CAPEX: R$ 550 million. • Equatorial’s share of CAPEX (25%): R$137 million. Equity = approximately R$45 million.
  • 35. 35 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex – Data
  • 36. 36 Financial strength and solid management team with turnaround experience Growth prospects and consolidation opportunities Result-oriented management model High level of Corporate Governance Value Creation
  • 37. 37 Agenda ►Company Profile ►Financial Performance ►Portfolio Overview ►Value Creation ►Annex - Data
  • 38. 2,686 GWh 38 CEMAR: Highlights MA PI AP Distribution company in the State of Maranhão 2.1 million clients (4th largest in the Northeast region)* Billed energy (2Q14): 2,686 GWh Annual gross revenues of R$ 2.5 billion in 2013. Energy Sales (2Q14) Clients (2Q14) 2.1 million *Source: ABRADEE RS SC PR SP MG GO MT AC AM RR RO BA MA PA TO CE RN PE AL SE MS RJ ES DF PB 49.0% 21.3% 21.0% 8.8% Residential Industrial Commercial Others 88.9% 6.6% 4.1% 0.4% Residential Industrial Commercial Others
  • 39. 39 CEMAR: History CEMAR under control of Equatorial 1958- Jun. 2000 Aug.2000- Aug.2002 Aug.2002-May 2004 May 2004- Present State owned CEMAR under PPL Global’s control ANEEL’s intervention
  • 40. 40 CEMAR: Ownership Structure Eletrobras Equatorial Energia Others 33.6% 65.1% 1.3% CEMAR
  • 41. 41 Tariff Review Results CEMAR 2005 2009 2013 Gross RAB 1.756 2 .247 3 .309 Net RAB 836 1 .121 2 .069 Operating Costs 2 18 2 78 4 28 Regulatory Depreciation 6 8 1 02 1 25 Regulatory EBITDA 157 2 71 3 41 CAIMI - - 45 Regulatory Losses (12-month) 28,0% 25,6% 19,6% Deliquency Rate 0,5% 0,9% 0,94% X Factor (ex-ante) 1,19% 1,06% 2,76% *All values are nominal and in R$ million.
  • 42. 42 CEMAR: Distribution CEMAR 2004 2005 2006 2007 2008 2009 2010 1S11 (***) 2011 (***) 2012 2013 1S14 Energy Sold GWh 2,593 2 ,793 2 ,917 3 ,223 3 ,347 3 ,566 4,146 2 ,069 4 ,379 4,804 5 ,288 2 ,686 Net Revenues R$ MM 495 6 65 8 10 8 79 9 99 1 ,148 1,756 857 1 ,912 2,348 1 ,969 1 ,001 PMSO R$ MM 127 1 26 1 29 1 26 1 39 1 71 245 1 35 2 91 321 3 67 1 66 PDA + Contingencies R$ MM 47 2 0 1 4 3 0 3 2 3 3 68 2 2 4 6 69 5 9 1 8 Accounting Ebitda R$ MM 93 1 89 3 41 3 79 4 15 4 70 500 2 26 4 82 533 4 94 89 Regulatory EBITDA R$ MM 93 1 89 3 41 3 79 4 15 4 70 500 - 4 70 496 5 60 2 56 Net Income R$ MM (31) 3 59 1 77 2 22 2 27 1 98 279 1 21 2 48 385 1 92 9 Dividends R$ MM - 85 1 65 1 72 1 40 58 2 00 - 94 76 3 8 - Net Debt R$ MM 362 3 05 2 91 4 21 6 73 7 68 759 9 94 8 98 1 ,102 870 7 69 Net Debt / Reg. EBITDA times 3.9 1 .6 0 .8 1 .1 1 .6 1 .6 1.5 2 .1 1 .9 2.2 1 .6 3 .0 Clients '000 1,161 1 ,254 1 ,349 1 ,438 1 ,535 1 ,688 1,822 1 ,884 1 ,939 2,037 2 ,126 2 ,167 PMSO/Client R$/Client 109 1 01 95 8 8 9 0 1 01 134 71 1 50 158 1 73 77 EBITDA/Client R$/Client 80 1 50 2 53 2 64 2 70 2 78 274 1 20 2 49 262 2 32 41 DEC (*) Hours/Year/Client 63.4 5 4.6 4 2.6 2 8.7 2 7.3 2 3.6 21.8 1 9.6 2 1.4 21.7 1 8.9 1 6.1 FEC (*) Times/Year/Client 39.3 3 2.9 2 4.6 1 9.8 1 6.8 1 5.2 14.1 1 1.5 1 1.6 11.0 1 0.9 1 0.7 Total Losses (*) % 29.9% 29.5% 29.8% 28.7% 28.9% 25.2% 22.0% 21.4% 21.0% 20.7% 19.2% 17.8% CAPEX R$ MM 45 1 03 1 37 1 99 2 78 2 39 197 1 06 3 22 441 2 96 1 32 PLPT (**) R$ MM 25 1 29 1 69 1 95 1 87 1 80 202 85 1 75 178 29 4 1 (*) Last 12 months (**) Light For All Program (***) Values according to IFRS
  • 43. 3,676 GWh 43 Celpa: Highlights PI AP Distribution company in the State of Pará 2.1 million clients Billed energy (1S14): 3,676 GWh Annual gross revenues of R$ 3.4 billion in 2013. Energy Sales (1S14) Clients (1S14) 2.1 million RS SC PR SP MG GO MT AC AM RR RO BA MA PA TO CE RN PE AL SE MS RJ ES DF PB PA PA 43.0% 17.4% 22.3% 17.3% Residential Industrial Commercial Others 85.8% 6.5% 7.5% 0.2% Residential Industrial Commercial Others
  • 44. 44 Celpa: History Celpa under Equatorial’s control 1962-Jul.1998 Jul.1998- Oct.2012 Nov.2012- Present State owned Celpa under Grupo Rede’s control Feb. 2012 Celpa’s Judicial Recovery Filing
  • 45. 45 Celpa: Ownership Structure Equatorial Energia CELPA - Centrais Elétricas do Pará S.A. 96.4% VC 96.2% TC Minorities (free float) 3.6% VC 3.8% TC
  • 46. 46 Tariff Review Results CELPA (in R$ million) 2011 Gross RAB 2.338 Net RAB 1.472 Operating Costs (starting point) 429 Operating Costs (upper limit) 352 Regulatory Depreciation 95 Regulatory EBITDA 253 Deliquency Rate (% GOR) 1.0% X Factor (ex-ante) 2.42% Regulatory Losses* 41,55%-34,00% *Non-technical over low voltage market
  • 47. • 2.1 million clients in 144 municipalities, covering the whole state of 47 Pará (total area 1,247,955 km²) • Energy sales reached 3,676 GWh in 1S14, 13.4% higher than 1S13’s figures. • In 2Q14, energy losses from the last 12 months represented 33.0% of required energy, 3.4 p.p. lower than the 36.4% recorded in 1S13. • In 2Q14, DEC and FEC for Celpa (accumulated over the last 12 mo nths) were 56.7 hours, down 34.4%, and 31.5 times, a 30.7% decrease when compared to indices observed at the end of 1S13. • More than 352 thousand clients connected through the Light for All Program. CELPA: Distribution CELPA 2012 2013 1S14 Energy Sold GWh 6,383 7,250 3,676 Net Revenues R$ MM 2,350 2,495 1,504 PMSO R$ MM 1,069 769 310 Non-manageable costs R$ MM 1,233 1,049 1,252 Accounting Ebitda R$ MM (369) 113 (58) Regulatory EBITDA R$ MM (344) 113 250 Net Income R$ MM (697) (229) (227) Net Debt R$ MM 1,219 961 650 Net Debt / Reg. EBITDA R$ MM N/A 8.5 2 .6 Clients '000 1,931 2,031 2,106 EBITDA/Client R$ / Clients N/A 56 (28) DEC (*) Hours / Year / Cons. 101.6 73.5 5 6.7 FEC (*) Times / Year / Cons. 50.9 3 8.0 3 1.5 Total Losses (*) % 35.0% 35.5% 33.0% CAPEX R$ MM 433 361 245 PLPT (**) R$ MM 46 6 1 8 0 (*) Includes Construction Costs/Rev enues (**) Last 12 months (***) Light For All Program All v alues are in accordance with IFRS
  • 48. 48 Eduardo Haiama CFO and IRO Thomas Newlands Investor Relations Renato Parentoni Investor Relations Phone 1: 55 21 3206-6635 Phone 2: 55 21 3206-6607 E-mail: ir@equatorialenergia.com.br Website: http://www.equatorialenergia.com.br/ir Contacts
  • 49. ► 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 intensions or expectations for our clients. ► 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 prevented 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. Such estimates refer only to the date in which they were expressed, therefore the Company has no obligation to update said statements. ► This presentation does not consist of offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not consist of a contract base or commitment of any kind. 49 Disclaimer