ne 06-09_em ingl
TRANSCRIPT
-
8/2/2019 NE 06-09_em ingl
1/101
Net income for the first half of
2009 reaches R$290 millionEBITDA for the six-month period is R$570 million
Effective free float increases from 7.7% to 22.1% ofcapital stock after sale of part of the shares held byBNDESPar and EDF
Lights results at the end of 1H09 are the fruit of a combination of
positive and negative effects, among which the most significant are:
(i) those resulting from the operating performance (consumption and
collection growth); (ii) those arising from major macroeconomicshifts (slower economic growth, dollar depreciation); (iii) those
stemming from regulatory impacts (review of tariff and regulatory
EBITDA last November); and (iv) those resulting from corporate
decisions (cash position reduction due to the R$407.9 million
dividend payment in April).
Disregarding the non-recurring effects of 1H08 and 1H09, net
income for 1H09, discussed below, would have been R$267.2 million
and, therefore, 6.2% higher than the result of the same period of2008.
Collection in 2Q09 reached 103.4% of gross energy supply
billing, showing strong recovery compared to 1Q09. During the last
12 months the collection rate was 97.4% of commercial billing, 0.8
p.p. above the index recorded in March. Cash generation this
quarter before the dividend payment was R$192.9 million more
than that of 2Q08.
On July 14, 2009 the Company published the notice ofcommencement of its secondary public distribution of shares
issued by Light S.A., whereby 29,470,480 shares were placed, of
which 16,079,135 shares were held by BNDESPar and 13,391,345
shares were held by EDF. The total number of shares sold
corresponds to 14.4% of the Companys capital stock. The offering
price, determined in the bookbuilding process, was R$24.00, for a
total of R$707.3 million. With this operation, the effective free
float of shares has increased from 7.7% to 22.1% of the capitalstock.
35
IR Contacts
Ronnie Vaz MoreiraVice Chief Executive Officer
and IRO
Ricardo LevyFinancial and IRSuperintendent
Cristina GuedesIR Manager
one: +55 (21) 2211-2650/2660
Fax: +55 (21) 2211-2787www.light.com.br
E-mail: [email protected]
Conference Call
Date: 8/12/2009Time: 10 A.M. (Brazil)
9 A.M. (US EST)
Phones:
Brazil:+55 (11) 2188-0188
USA:+1 (866) 890-2584
Other countries:+1 (646)843-6045
Simultaneous translationinto English
Webcast:www.light.com.br
(Portuguese and English)
http://www.light.com.br/mailto:[email protected]://www.light.com.br/http://www.light.com.br/mailto:[email protected]://www.light.com.br/ -
8/2/2019 NE 06-09_em ingl
2/101
Light posted consolidated net income ofR$121.4 million in 2Q09, compared
to R$388.6 million in 2Q08, which had suffered the effects of a strong provision
reversal in the period. Disregarding the recognition of tax credits this quarter, the
Income Tax/Social Contribution effect resulting from the dollars depreciation on
Light SESAs liabilities with the offshore company LIR in the periods, and the
reversion of the provision for VAT taxes (PIS/COFINS) carried out in 2Q08, net
income would have been R$93.4 million in this quarter, compared to R$142.8
million in 2Q08. Net income for the first halfof 2009 was R$289.7 million.
In the quarter, consolidated net revenue totaled R$1,273.3 million, 1.9%
more than 2Q08. This decrease is mainly the effect of the non-recurring record of
R$29.0 million related to the low-income subsidy in 2Q08. Disregarding this,
revenue for the quarter is in line with 2Q08. In the first half of 2009, net revenue
totaled R$2,710.0 million, a 3.7% increase year-on-year.
Consolidated EBITDA for the quarter was R$220.6 million, 34.0% below
1Q08, mainly as a result of the reduction in the Companys regulatory EBITDA due
to the tariff adjustment conducted in November 2008, which is to be expected in
the first year of each tariff cycle, when scale gains are fully passed through to
consumers, and also of the CCEEs re-recording this quarter of R$25 million in
energy purchase referring to 1Q09. Accumulated EBITDA in 1H09 stood at
R$570.1 million, 11.2% below 1H08.
The Company closed the quarter with net debt of R$1,647.4 million, up 15.2%
compared to the end of March of 2009. This growth is explained mainly by the
decreased cash position due to the April dividend payment in the amount of
R$407.9 million. Our Net debt/EBITDA leverage index was 1.2x at quarters
end.1
1 To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billed
energy and demand of free customers Valesul, CSN and CSA were excluded, in view of these customersplanned migration to the core network. In 2Q09, the energy consumption of these customers totaled 395GWh and their demand was 2,294 GW, compared to a 722 GWh consumption and 2,919 GW demand in2Q08.
36
Operational Highlights (GWh) 2Q09 2Q08 Var. % 1H09 1H08 Var. %
Grid Load* 7,537 8,021 -6.0% 16,356 16,737 -2.3%
Billed Energy - Captive Market 4,619 4,529 2.0% 9,621 9,351 2.9%
Consumption in the concession area1 5,228 5,211 0.3% 10,786 10,692 0.9%
Transported Energy - TUSD1 1,144 1,302 -12.1% 2,323 2,594 -10.4%
Sold Energy - Generation 1,163 1,210 -3.9% 2,425 2,421 0.2%Commercializated Energy (Esco) 140 118 18.5% 252 250 0.7%
Financial Highlights (R$ MM)
Net Revenue 1,273 1,298 -1.9% 2,711 2,613 3.7%
EBITDA 221 334 -34.0% 570 642 -11.2%
EBITDA Margin 17.3% 25.8% - 21.0% 24.6% -
Net Income 121 389 -68.8% 290 492 -41.1%Net Debt** 1,647 1,550 6.3% 1,647 1,550 6.3%
* Captive market + losses + network use
** Financial Debt - Cash
-
8/2/2019 NE 06-09_em ingl
3/101
Release Segmentation
Light S.A. is a holding company with wholly-owned subsidiaries that participate in
three business segments: electricity distribution (Light SESA), electricity generation
(Light Energia) and electricity trading/services (Light Esco). To increase the
transparency of its results and enable investors to make a better evaluation, Light
also presents its results by business segment.
2nd Quarter 2008 Results
2Q08 and 1Q08 results were adjusted to reflect the impacts of Law 11,638/07 on
the respective results of the periods, pursuant to CVM Resolution 565/08, as well as
the reclassification of employee profit sharing (PLR) after the income tax line,
thereby no longer being classified as costs and personnel expenses. For further
information, see Appendix V of this release.
Operating Performance
Distribution
Total energy consumption in Lights concession
area (captive customers + billed free customers2)
in 2Q09 was 5,228 GWh, growing 0.3% when
compared to the same period in 2008, chiefly due
to the growth in captive market consumption.
Total consumption in 1H09 was 10,786 GWh, a
0.9% increase year-on-year driven mainly by the
significant growth in the residential and
commercial markets due to the high temperatures of the first quarter. According to
the Energetic Research Enterprise (EPE), this performance surpasses that of the
Southeast Region, which decreased by 4.1% year-on-year.
2 To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billedenergy and demand of free customers Valesul, CSN and CSA were excluded, in view of these customers
planned migration to the core network. In 2Q09, the energy consumption of these customers totaled 395GWh and their demand was 2,294 GW, compared to a 722 GWh consumption and 2,919 GW demand in2Q08.
37
Electric Energy Consumption (GWh)Total Market (Captive + Free)
4,529 4,619
681 609
5,211 5,228
2Q08 2Q09
Capt ive Free
2,0%
-10,7%
0,3%
-
8/2/2019 NE 06-09_em ingl
4/101
Taking into account the energy consumed by free consumers CSN, Valesul and
CSA, consumption in this quarter was 5,623 GWh and 11,652 in 1H09.
Captive Customers
Despite the economic
crisis, billed
consumption in the
captive market grew
2.0% year-on-year,
primarily a result of
higher consumption
in the residential andcommercial classes which together accounted for 72.3% of the captive market
as well as government consumption, included in other. The increased
consumption of these classes was influenced by the higher temperature this year
0.5 C above the 2Q08 average despite the lower number of billing days in the
low voltage, 0.8 day.
Consumption in the residential segment, which accounted for 40.3% of the captive
market in the quarter, grew 2.2% over 2Q08. The number of residential customers
rose 1.1% to 3.7 million billed customers with average monthly consumption of
170.0 kWh/month in this quarter, compared to 168.4 kWh/month in the same
period of 2008.
Commercial segment consumption, which represented 32.0% of the captive market
this quarter, grew 1.7% year-on-year.
The captive industrial segment, which represented only 9.9% of the captive
market, was stable in relation to 2Q08 despite the effects of the economic
slowdown on the industrys operations; heavy industry was the most impacted
segment. This year, a customer from the chemical industry that consumed an
average 10 GWh in 2008 returned from the free to the captive market.
In 1H09, the captive markets billed consumption totaled 9,621 GWh, 2.9% more
than in 1H08. This growth is primarily a result of the strong performance of the
residential and commercial segments, which recorded billed consumption growth of
4.6% and 2.5%, respectively, compared to 1H08, representing a 250.5 GWh
increase. This performance allowed the growth of captive market in the period, fully
offsetting the 2.0%, or 18.5 GWh, decrease in industrial consumption that was an
effect of the economic slowdown.
38
Electric Energy Consumption (GWh)
2nd
Quarter
4,529
797
1,452
459
1,821
4,619
822
1,477
459
1,862
Residential Industrial Commercial Others Total
2Q08 2Q09
-0,1%
2,0%
1,7%
2,2%
3,1%
-
8/2/2019 NE 06-09_em ingl
5/101
Network Use3
Billed energy transported to free customers
and concessionaires amounted to 1,144
GWh this quarter, 12.1% below 2Q08. This
decline was caused by a 10.7% drop in free
customer consumptionin particular in the
steel industry, which was affected by the
international economic crisisin addition to
the return to the captive market of a
customer that represented a monthly
average consumption of approximately 10
GWh in 2008 in 2Q09. The flow of energy supplied to the concessionaires bordering
Lights area fell 13.7% between the periods. In 1H09, network use totaled 2,323
GWh, 10.5% below the energy transported in 1H08.
The tariff breakdown of free customers is mainly
driven by contracted demand; therefore a decline
in the volume of transported energy does not
significantly affect the revenue originating from
these customers.
Billed demand for free customers and
concessionaries corresponded to 6,075 GW this
quarter, unchanged in relation to 2Q08. Free
customer demand this quarter decreased by 9.2%
compared to the same period last year, mainly due to the fall in the contracted
demand of a major customer from the steel industry. The 6.5% increase in demand
from concessionaires offset the decrease in free customer demand. In 1H09, free
customer and concessionaire demand totaled 12,217 GW, 2.7% above 1H08 billed
demand.
The amount presented in GW is related to the annual sum of billed demand each
month, considering peak and out of peak periods.
3To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billedenergy and demand of the free customers Valesul, CSN and CSA were excluded, in view of thesecustomers planned migration to the core network. In 2Q09, the energy consumption of these customerstotaled 395GWh and their demand was 2,294 GW, compared to a 722 GWh consumption and 2,919 GWdemand in 2Q08.
39
Electric Energy Transportation - GWh
Free Customers + Utilities
681609 621
1,302
535
1,144
Free Utility Total
2Q08 2Q09
-10,7%-13.7%
-12.1%
Billed Demand (GW)
Free Costumers and Utilities
2,406
3,656
6,062
2,183
3,892
6,075
Free Utility Total
2Q08 2Q09
-9.2%
6.5%
0.2%
-
8/2/2019 NE 06-09_em ingl
6/101
Energ y Flow
40
Residential
192.9 4,024.5
CCEAR Billed Industrial
Light Energia Energy 891.8
164.4 Own load 9,621.1
Light Commercial
13,218.2 3,059.2
2,791.0 Others
13,499.9 3,597.0 1,645.7
6,934.3 Basic netw.
losses
Adjustment 7.6
3,150.1
267.1
(*) Others = Purchase in Spot - Sale in Spot.
PROINFA
OTHERS(*)
(CCEE)
DISTRIBUTION ENERGETIC BALANCE - GWh
NORTE FLU(CCEE)
Required E.
(CCEE)
AUCTIONS
(CCEE)
274.1
ITAIPU
(CCEE)
Position: january-june 2009
Differences
Energy Balance (GWh) 2Q09 2Q08 Var.% 1H09 1H08 Var.%= Grid Load 7,537 8,021 -6.0% 16,356 16,737 -2.3%
+ Energy transported to utilities 535 621 -13.7% 1,158 1,253 -7.6%
+ Energy transported to free customers 931 1,416 -34.3% 1,980 2,759 -28.2%
= Own Load 6,071 5,984 1.5% 13,218 12,725 3.9%
+ Captive market consumption 4,619 4,529 2.0% 9,621 9,351 2.9%+ Differences 1,452 1,454 -0.2% 3,597 3,373 6.6%
*Including CSN, Valesul and CSA
-
8/2/2019 NE 06-09_em ingl
7/101
Electric Energy Losses
Lights total losses totaled 6,929 GWh,
of 21.3% over the grid load, in the 12
months that ended in June of 2009,
representing a 0.44 p.p. increase
compared to the loss index in March of
2008. Non-technical losses reached
4,874 GWh, growing 0.33 p.p. over the
grid load. The index was affected by a
decline in consumption of large customers (who did not present non-technical
losses), adversely impacting the grid load, which is the denominator of the index. Itis also worth pointing out that the loss over grid load index suffers the effect of the
grid load reduction.
Conventional energy recovery processes, such as the negotiation of amounts owed
by customers where fraud was detected, caused energy recovered in 1H09 to
increase 51.4% over the same period in the previous year, totaling 75.7 GWh
recovered, despite the 5.3% decrease in the number of customers normalized
between the periods, suggesting that more significant frauds are being prioritized.
Additionally, loss prevention programs generated an energy incorporation of 35.2
GWh in the first half of the year, a 139.5% increase over
the 14.7 GWh incorporated in the same period last year.
In June of 2009, Inmetro approved the electronic meter of
one of Lights suppliers, whose technology allows
centralized metering and remote management of reading,
dis- and re-connection processes. This approval is a
fundamental step in the progress of the program for loss-prevention based on new technologies. Inmetros delay in
approving and the conditions required for the centralized
metering system caused the initial plan to install 100,000
meters to be scaled back to 20,000. As part of the
centralized metering system, the Company continues to
invest in network modernization by protecting 175 km of
the low voltage network in 1H09, with 850 more km to be
protected by years end. In 2008, 120 km were replaced.Light believes that its continuous investment in new
41
Light Losses Evolution
12 months
6,929
6,885
6,743
6,808
6,791
14.57% 14.44% 14.36% 14.60% 14.93%
21.23%20.56% 20.51% 20.42% 20.79%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
GWh Losses
% Losses / Grid Load (Own + Transport)
Non-technical losses % Grid Load
Ene rg y I n c o rpo ra t i onG W h
R e c o v e r e d E n e r g yG W h
1 H 0 8 1 H 0 9
50.0
75.7
1H08 1H09
51.4%
14.7
35.2
1H08 1H09
139.5%
-
8/2/2019 NE 06-09_em ingl
8/101
metering and network protection technologies will result in sustainable loss
reduction.
Collection
Collection in 2Q09 exceeded 100% of
the total billed amount, reaching a
rate of 103.4% partly due to the
collection of debts from previous
years and also to the payment of
overdue invoices related to the
beginning of this year. The retail
segment, with collection levels above
100%, was fundamental to the
recovery of this quarters global rate.
In addition to retail, the segment of
large customers including public
agencies also showed high
collection rates, reflecting the
success of delinquency-prevention
initiatives focused on both
segments. The collection rate of
the last 12 months, which
encompasses the economic crisis
that began in September 2008,
was 97.4% of billing, 0.8% above the March index.
The provision for past due accounts (PDD) constituted in 2Q09 was 3.5% of the
gross billed energy or R$66.5 million, a decrease of 0.6 p.p. in relation to 2Q08.
The effect of the economic crisis on 1Q09 collection impacted the 2Q09 PDD, since,
according to the criteria for constituting a provision in the sector, provisions related
to past due accounts from residential
customers should be constituted 90
days after the due date. In the first six months of 2009, the PDD was R$18.7
million higher than the 1H08 provision, chiefly resulting from the impact of the
crisis on retail collection, primarily in 1Q09.
Operating Quality
42
Colletion rateR$ MM 2Q09 2Q08 1H09 1H08
Billing 1,986 1,911 4,162 3,882Collection 2,054 1,925 4,037 3,833Collection Tax 103.4% 100.7% 97.0% 98.7%
Collection rate
12 months moving average
96.5%
98.8%
96.6%
97.4%
Jun-07 Jun-08 Mar-09 Jun-09
PDD/Gross Revenue (Billed Sales)
2.6%2.9%
3.5%
2Q08 1Q09 2Q09
R$ MM 1H08 1H09 Variation
PDD 107.6 126.4 18.7
-
8/2/2019 NE 06-09_em ingl
9/101
A series of major investments in increasing the reliability of the distribution system
the Company began making in 2008 started to show effective results this quarter
when quality indicators returned to pre-program levels even with the increase in
the number of scheduled disconnectionsnecessary due to the investments made
in the network. Thus, disregarding the effect of these disconnections, the
equivalent length of interruptions (DEC) index in the first half of the year was 3.75
compared to 4.96 in 1H08, a 24.4% improvement. The equivalent frequency of
interruptions (FEC) index fell from 3.29 in 1H08 to 2.69 in 1H09, an 18.24% drop.
Investments made since 2008 in important projects like the replacement of the
conventional network with space cable (compressed MT network) and installation of
remotely commanded keys to reduce interruption times, together with a reduction
in planned disconnections, were instrumental to improving our indicators. These
investments include improving electricity supply quality, increasing distribution
network capacity and protecting the network, and amounted to R$60.7 million in
1H09, compared to R$43.9 million in 1H08. The electrical system maintenance plan
began to be monitored by a specific SAP system module, providing better
management and positively impacting the service continuity.
Generation
Energy sold on the Regulated (ACR) and Free Contract (ACL) markets in 2Q09 was
1,013.6 GWh and 120.3 GWh, respectively. In the ACR, the volume of energy sold
was 0.8% lower than in the same period in 2008, resulting mainly from the end of
the contract for an 11.88 average MW product of the 2006/08 existing energy
auction held in 2005, resold in the ACL, which resulted in a 24.2% increase over
2Q08. The lower volume of energy sold on the spot market in 2Q09 was mainly
due to the decrease in secondary energy for sale on that market.
In 1H09 a total of 2,425.5 GWh was sold, similar to 1H08 figures.
43
ELC / EFC - 12 Months
6.03
7.81
6.03
9.1311.35
7.81EFC
ELC
Jun-09 Jun-08 Jun-07
ELC Equivalent Length of Interruption per Consumption Unit (hs)EFC Equivalent Frequency of Interruption per Consumption Unit (n.)
LIGHT ENERGIA (GWh) 2Q09 2Q08 % 1H09 1H08 %
Regulated Contracting Environment Sales 1,013.6 1,021.3 -0.8% 2,053.2 2,081.2 -1.3%
Free Contracting Environment Sales 120.3 96.9 24.2% 206.3 207.8 -0.7%
Spot Sales (CCEE) 28.9 91.8 -68.5% 166.0 132.4 25.4%
Total 1,162.9 1,210.0 -3.9% 2,425.5 2,421.4 0.2%
-
8/2/2019 NE 06-09_em ingl
10/101
Trading and Services
In the second quarter of 2009, Light Esco sold 139.7 GWh directly, an 18.5%increase in trading volume compared to 2Q08. This increase is explained by the
greater availability of energy for resale at the trading company due to the
expansion of its contract portfolio.
In addition to direct sales, Light Esco also continued to provide consulting services
and represent free clients before the CCEE. These activities included operations of
around 262.0 GWh and 8 clients.
In 1H09, Light Esco traded 251.5 GWh, a 0.7% increase in relation to the same
period of 2008. This result reflects the increase in traded energy in 2Q09 when
compared to 2Q08, offsetting the smaller volume of energy traded in 1Q09.
Currently, Light Esco has 55 energy sale customers, 47 of which use the companys
trading services and 8 of which use its consulting and contract intermediation
(brokerage) services. In June 2008, it had 44 customers.
As to the service activity, Light Esco has been developing major projects for setting
up service drops, substations, cold water centers and energy efficiency projects for
customers such as TV Globo, Fiocruz, and the Academia Brasileira de Letras, amongothers.
44
Volume (GWh) 2Q09 2Q08 Var. % 1H09 1H08 Var. %Trading 139.7 117.9 18.5% 251.5 249.7 0.7%Broker 262.0 401.8 -34.8% 535.5 723.8 -26.0%
Total 401.7 519.7 -22.7% 787.0 973.5 -19.2%
-
8/2/2019 NE 06-09_em ingl
11/101
Financial Performance
Net Revenue
Consolidated
Net operating revenue totaled R$1,273.3 million in 2Q09, 1.9% lower than in 2Q08
primarily as a result of the record in 2Q08 of R$29.0 million referring to the low-
income subsidy. Positive contributions to net revenue in the quarter were the
increases of 9.8% in the generation segment revenue and of 15.1% in the energy
trading operations revenue.
45
Net Revenue (R$ MM) 2Q09 2Q08 Var. % 1H09 1H08 Var. %
DistributionBilled consumption 1,144.3 1,142.9 0.1% 2,387.3 2,272.9 5.0%Non billed energy (47.4) (34.2) 38.8% (20.3) (41.9) -51.5%Network use (TUSD) 85.5 106.1 -19.4% 172.6 202.7 -14.9%Short-Term (Spot) 7.7 5.0 52.8% 7.7 6.8 12.1%Others 13.5 15.0 -10.5% 26.0 28.2 -Subtotal (a) 1,203.5 1,234.8 -2.5% 2,573.3 2,468.8 4.2%
GenerationGeneration Sale(ACR+ACL) 66.8 62.6 6.7% 131.9 139.5 -5.5%
Short-Term1
5.3 3.2 65.1% 10.5 11.0 -4.1%Others 1.3 1.1 26.0% 2.7 2.1 25.2%Subtotal (b) 73.4 66.9 9.8% 145.1 152.6 -4.9%
ComercializationEnergy Sales 16.6 11.7 41.6% 30.1 39.6 -23.9%Others 2.5 4.8 -49.1% 6.9 6.9 -1.0%Subtotal (c) 19.1 16.6 15.1% 37.0 46.5 -20.5%
Others and Eliminations (d) (22.7) (20.7) (44.5) (54.6)
Total (a+b+c+d) 1,273.3 1,297.6 -1.9% 2,710.9 2,613.3 3.7%
(1) Balance of the settlement on the CCEE
-
8/2/2019 NE 06-09_em ingl
12/101
Distribution
Net distribution revenue was R$1,203.5 million in thequarter, 2.5% below net revenue in 2Q08. This result
was mainly impacted by the record of R$29.0 million
in 2Q08 referring to the low-income subsidy.
Disregarding this, revenue this quarter would be in
line with that of the same period last year.
Despite the growth of nearly 2.0% in
captive market consumption, revenue was
affected by the fall in energy and demand
contracted by free and captive customers in
function of the effect of the economic
slowdown on their operations. Residential
and commercial consumption accounted for
77% of captive market revenue.
The distribution companys net revenue in 1H09 totaled R$2,573.3 million, up 4.2%
year-on-year chiefly because of strong market growth in 1Q09.
It is worth mentioning that, as the market approved by Aneel in the tariff
adjustment process did not take into consideration the energy and demand of CSN,
Valesul and CSA due to their planned migration to the core network, any variation
in the market of these customers will have a neutral effect on the distribution
companys total revenue. Given the lower than expected consumption of CSN and
Valesul in 1H09, a regulatory asset was formed and distributed among other
revenue lines that fully offsets this reduction.
Generation
Net revenue in the quarter was R$73.4 million, 9.8% higher than in 2Q08. This
increase was mainly due to the adjustment of energy sale contracts for inflation
and the re-contracting of part of the energy from the ACR to the ACL for a higher
price, offsetting the decrease in the volume sold on the spot market.
In 1H09, net revenue was R$145.1 million, 4.9% lower than in 1H08 as a result of
the lower secondary energy sales volume on the Free and Regulated Contract
markets, which together recorded 1.3% decrease.
46
Net Revenue by Class - Captive
R$ MM - 2Q09
Residential44%
Industrial9%
Commercial33%
Others14%
376502
106
161
Electric Energy Consumption GWh - Captive
2Q09
Residential40%
Industrial10%
Commercial32%
Others
18%
1,862822
1,477459
-
8/2/2019 NE 06-09_em ingl
13/101
Trading and Services
Net revenue in the quarter was R$19.1 million, up 15.1% over 2Q08. This increase
is primarily the result of this quarters 18.5% rise in the volume of trading saleswhen compared to 2Q08.
In 1H09, net revenue decreased 20.5% in comparison to 1H08 chiefly due to the
larger allocation of energy in the first quarter of 2008, whereas in 2009 this
allocation was bigger in the second quarter. In addition to the effect of the allocated
volume, this quarters revenue was also affected by the recorded CCEE average
energy price (spot), which fell 64.9% year-on-year.
Costs and Expenses
Consolidated
Consolidated Operating Costs and Expenses
In the second quarter of 2009, operating costs and expenses were 8.2% higher
than in 2Q08, in particular due to the 13.0% increase in non-manageable
distribution costs and expenses. Another factor that had an impact on costs and
expenses this quarter was the R$10.1 million provision for the Stock Option Plan,
which affected Light S.A.s personnel account; in 2Q08 the provision was
concentrated in the 4th quarter.
Distribution
In 2Q09, costs and expenses of the energy distribution business grew 6.6% over
2Q08 as shown in the table below. The increase was caused by a 13.0% increase in
non-manageable, pass-through costs and expenses in the tariff in spite of an 8.8%
decline in manageable costs and expenses.
47
Operating Costs and
Expenses (R$ MM) 2Q09 2Q08(%) 1H09 1H08 Var. %
Distribution (1,092.6) (1,025.1) 6.6% (2,219.7) (2,087.0) 6.4%Generation (31.6) (30.2) 4.7% (64.7) (60.9) 6.1%Comercialization (15.7) (10.2) 54.5% (30.9) (34.8) -11.2%Others and Eliminations 11.1 21.9 -49.3% 22.1 52.3 -57.8%Consolidated (1,128.8) (1,043.5) 8.2% (2,293.1) (2,130.4) 7.6%
-
8/2/2019 NE 06-09_em ingl
14/101
Non-Manageable Costs and Expenses
In the second quarter of this year, non-
manageable costs were R$816.0 million,
representing a 13.0% growth year-on-year.
Energy purchase costs rose 12.1%
compared to 2Q08. It is important to point
out that R$25 million related to energy
purchase expenses referring to 1Q09 wasrecorded this quarter, due to CCEEs re-
recording. Disregarding this amount, energy
purchase costs would be 7.8% higher than the amount recorded in 2Q08 due to the
increase in energy costs approved in the latest tariff adjustment.
Expenses related to purchased
energy rose 28.5%, chiefly as a
result of : (i) the Itaipu dollar tariff
adjustment by approximately 10%
in January 2009, combined with the
dollars 24.3% appreciation
considering the average rates
between the two quarters, (ii) TPP
Norte Fluminense (Norte Flu) 26.2%
average price increase reflecting the higher compensatory surcharge for gas (gas
CVA) impacted by the dollars appreciation, (iii) the approximately 6.4% increase in
auction contracts in Nov/08 affected by 6.0% inflation in the period (IPCA - Nov07to Oct/08) and the introduction of new products in the 1st and 2nd thermal (T-15)
48
Costs and Expenses (R$ MM) 2Q09 2Q08 (%) 1H09 1H08 Var. %
Non-Manageable Costs and Expenses (816.0) (722.0) 13.0% (1,690.8) (1,512.0) 11.8%
Energy Purchase costs (647.2) (577.2) 12.1% (1,327.7) (1,212.7) 9.5%
Purchased Energy (722.2) (562.1) 28.5% (1,457.7) (1,218.2) 19.7%
Formation Energy CVA 74.9 (15.2) - 130.0 5.5 2262.9%
Costs with charges (124.0) (86.6) 43.2% (271.4) (218.7) 24.1%
Charges (125.2) (131.8) -5.0% (286.2) (275.6) 3.9%
Formation Charges CVA 1.2 45.1 -97.4% 14.9 56.9 -73.9%
Amortization CVA (39.3) (52.5) -25.2% (80.6) (70.6) 14.2%
Others (Mandatory Costs) (5.5) (5.6) -2.1% (11.1) (10.0) 11.2%
Manageable Costs and Expenses (276.6) (303.2) -8.8% (528.9) (575.0) -8.0%
PMSO (121.7) (117.9) 3.2% (238.4) (241.0) -1.1%
Personnel (46.2) (43.7) 5.7% (93.4) (92.2) 1.3%
Material (3.0) (3.4) -11.2% (6.9) (7.0) -2.3%
Outsourced Services (61.9) (61.4) 0.8% (115.2) (119.2) -3.4%
Others (10.6) (9.4) 12.9% (22.9) (22.5) 2.0%
Provisions (85.0) (111.3) -23.6% (150.6) (187.5) -19.7%
Depreciation (69.9) (73.9) -5.5% (140.0) (146.6) -4.5%Total Costs and Expenses (1,092.6) (1,025.1) 6.6% (2,219.7) (2,087.0) 6.4%
Purchased Energy - R$ MM
2nd Quarter
562
722
40.8%43.1%
33.8%
33.1%21.7%
22.3%3.7%
1.5%
2Q08 2Q09
AUCTIONS NORTE FLU ITAIPU SPOT
Purchased Energy - GWh
2nd Quarter
6,213 6,507
48.1% 52.5%
25.5%24.3%
23.0%21.6%1.2%
1.6%-
2.3%
2Q08 2Q09
AUCTIONS NORTE FLU ITAIPU PROINFA SPOT
-
8/2/2019 NE 06-09_em ingl
15/101
and hydro (H-30) energy auctions, (iv) the 13% increase in charges, and (v) the
energy purchase in the 2009 adjustment auction (Mar/09 to Dec/09), whose cost
this quarter was R$145.7/MWh.
The average purchased energy cost excluding spot purchases increased 21.5%
from R$90.7/MWh in 2Q08 to R$110.2/MWh in 2Q09.
Charges grew 43.2% in 2Q09 over 2Q08, chiefly due to thermoelectric plant
dispatch in 2008 that resulted in increased System Service Charges (ESS) for
distribution companies.
In 1H09, non-manageable costs and expenses were R$1,690.8 million, increasing
11.8% year-on-year. Energy purchase costs rose 9.5% over 1H08 as the combined
effect of approved increased energy purchase costs and the greater volume of
purchases this year. Charges increased 24.1% between the periods.
Manageable Costs and Expenses
Manageable operating costs and expenses (personnel, materials, outsourced
services, provisions, depreciation and others) totaled R$276.6 million in 2Q09, an
8.8% drop between the periods. This result is explained mainly by lower provisions,
which were 23.6% below 2Q08.
Costs and expenses with staff, equipment, services and others (PMSO) amounted
to R$121.7 million in the quarter, 3.2% above the R$117.9 million recorded in
2Q08. This result was chiefly due to a 5.7% or R$2.5 million increase in personnel
costs and expenses, mainly due to a 5.6% pay raise granted in this years collective
bargaining agreement.
This quarters provisions (PDD, Provision for Contingencies and Others) fell R$26.3
million chiefly because of provisions constituted in 2Q08 for the low-income subsidy
and an increase in Braslights actuarial liabilities in the amounts of R$17.2 million
and R$23.9 million, respectively. We provisioned R$66.5 million for past due
accounts in 2Q09, representing 3.5% of gross billed energy, versus R$47.4 million
or 2.6% of gross billed energy in 2Q08, a reflection of the economic crisis that
decreased retail customers ability to pay in the beginning of 2009.
From January to June 2009, manageable operating costs and expenses totaled
R$528.9 million, an 8.0% drop compared to the same period of 2008.
49
-
8/2/2019 NE 06-09_em ingl
16/101
Generation
In 2Q09 Light Energias costs and expenses were R$31.6 million, 4.7% higher than
in 2Q08, principally due to R$0.8 million increase in other expenses, a reflection of
the higher royalties charged for use of water resources, the 4.3% increase in CUSD
(distribution system use) costs, and the 11.3% rise (R$0.3 million) in expenses
with materials and outsourced services.
Expenses in 2Q09 were as follows: CUSD (use of the distribution system, 34.2%),
personnel (15.5%), materials and third-party services (10.2%), others and
depreciation (40.1%). In 2Q09, the PMSO cost per MWh was R$12.55/MWh, while
in 2Q08 this cost was R$11.54/MWh.
In 1H09, Light Energias costs and expenses were R$64.7 million, up 6.1%
compared to 1H08 chiefly due to the 11.8% and 16.0% increases in CUSD and
other expenses, respectively.
50
Operating Costs and Expenses - R$ MM 2Q09 2Q08 (%) 1H09 1H09 Var. %
Personnel (4.9) (4.8) 2.6% (8.8) (9.5) -6.7%Material and Outsourced Services (3.2) (2.9) 11.3% (6.6) (6.2) 6.8%Purchased Energy (CUSD) (10.8) (10.4) 4.3% (23.3) (20.9) 11.8%Depreciation (6.1) (6.3) -3.1% (12.2) (12.6) -3.2%Others (includes provisions) (6.6) (5.9) 12.4% (13.7) (11.8) 16.0%Total (31.6) (30.2) 4.7% (64.7) (60.9) 6.1%
-
8/2/2019 NE 06-09_em ingl
17/101
Trading and Services
In 2Q09, costs and expenses totaled R$15.7 million, 54.5% more than in the same
period in 2008. This increase was mainly because of the 38.5% increase in the
energy purchase cost between the quarters due to the 14.3% increase in the
purchased energy volume to fulfill the trading companys new contracts, in addition
to the increase in the costs and expenses with materials as a result of expanded
energy service projects.
In 1H09, costs and expenses totaled R$30.9 million, an 11.2% decline compared to
1H08 that resulted mainly from the 47.1% decrease in energy purchase costs in
1Q09, a reflection of the reduction in the spot price amounts in relation to 1Q08.
EBITDA
Consolidated
Consolidated EBITDA dropped 34.0% year-on-year, totaling R$220.6 million in the
second quarter of 2009. This result is mainly due to the reduction in the distribution
companys EBITDA, a reflection of the November 2008 tariff review process
combined with the effects of the crisis over the consumption that particularly
affected the demand and consumption of customers from the industrial segment.
The consolidated EBITDA margin fell 8.5 p.p. between the periods from 25.8% in
2Q08 to 17.3% this quarter.
51
Operating Costs and Expenses - R$ MM 2Q09 2Q08 (%) 1H09 1H08 Var. %
Personnel (0.4) (0.5) -18.5% (0.9) (0.9) -1.4%Material and Outsourced Services (2.0) 0.1 - (4.3) (1.0) 324.8%Purchased Energy (13.1) (9.5) 38.5% (25.2) (32.3) -22.0%Depreciation (0.2) (0.2) -26.1% (0.3) (0.4) -25.9%Others (includes provisions) (0.1) (0.1) -2.2% (0.2) (0.1) 21.6%Total (15.7) (10.2) 54.5% (30.9) (34.8) -11.2%
EBITDA - 2Q09/2Q08 - R$ mn
221
334
26(20)
(25)
(96)
EBITDA - 2Q08 Net Revenue CCEE's re-
recording
Manageable
Costs (PMSO)
Provis ions EBITDA - 2Q09
EBITDA per segment *
1H09
Distribution83.3%
Generation15.6%Commercializati
on1.1%
*Does not consider eliminationsConsolidated EBITDA- R$ MM 2Q09 2Q08 Var.% 1H09 1H08 Var.%
Distribution 180.8 283.6 -36.3% 493.6 528.4 -6.6%Generation 47.9 43.0 11.4% 92.6 104.3 -11.2%Commercialization 3.5 6.6 -47.1% 6.4 12.1 -47.2%Others and eliminations (11.6) 1.1 - (22.5) (2.5) 797.1%Total 220.6 334.3 -34.0% 570.1 642.3 -11.2%EBITDA Margin (%) 17.3% 25.8% - 21.0% 24.6% -
-
8/2/2019 NE 06-09_em ingl
18/101
Distribution
The distribution companys EBITDA in 2Q09 totaled R$180.8 million, 36.3% below
the same period last year. This result may be explained mainly by: (i) the reduction
in the regulatory EBITDA resulting from the latest tariff review, approved in
November of 2008 whereby the scale gains obtained during the first cycle (2003 to
2008) are fully passed through to consumers; (ii) the reduction in consumption and
demand of free customers, which affected the revenue for the quarter, and (iii) the
recording, in this quarter, of R$25 million in energy purchases referring to 1Q09
due to CCEEs re-recording. As a result, the EBITDA margin in 2Q09 was 15.0%,
7.9 p.p. lower than that of 2Q08.
In 1H09, EBITDA was R$493.6 million, down 6.6% compared to 1H08, with a
19.2% margin. This reduction is chiefly the result of the lower market in the second
quarter and the effect of the tariff review conducted in November 2008.
Generation
Light Energias EBITDA grew 11.4% year-on-year, totaling R$47.9 million in 2Q09.
This increase is primarily a result of the 9.8% increase in net revenue due to the
adjustment in the sale price that more than offset the 4.7% rise in expenses. The
EBITDA margin this quarter was 65.2%, 1.0 p.p. higher than in 2Q08.
In 1H09, EBITDA was R$92.6 million, contracting 11.2% compared to 1H08 as a
result of the 4.9% decrease in net revenue, resulting from the decision to allocate a
larger volume of energy to the second half, combined with the 6.1% increase in
costs and expenses. The EBITDA margin in the first half of the year was 63.8%,
down 4.5 p.p. compared to 1H08.
Trading and Services
EBITDA totaled R$3.5 million this quarter, a decline of 47.1% compared to the
R$6.6 million registered in 2Q08. The reduction in the quarter can be explained by
the decoupling of the cost of materials necessary to the energy service businesses
and the corresponding revenue, as well as the 64.9% drop in the spot price, which
negatively affected the trading operations short-term contracts. The EBITDA
margin was 18.3% in the quarter, decreasing 21.5 p.p. year-on-year.
52
-
8/2/2019 NE 06-09_em ingl
19/101
In 1H09, EBITDA was R$6.4 million, 47.2% below that of 1H08 due to the 20.5%
drop in net revenue as a result of both the lower volume traded and the year-on-
year decrease in the spot price, despite the 11.2% decrease in costs and expenses.
The EBITDA margin in 1H09 was 17.3%, 8.7 p.p. below the one recorded in 1H08.
53
-
8/2/2019 NE 06-09_em ingl
20/101
Consolidated Financial Result
The financial result in the quarter was a negative R$11.5 million, compared to a
positive R$421.1 million in the second quarter of 2008, due to the non-recurring
effect of the reversal of provisions referring to the expansion of the PIS/COFINS
calculation base that had a positive impact of R$432.2 million on that quarter.
Disregarding the effect of that provision reversal, the financial result was in line
with that of the same period of 2008, as a combined result of the 58.8% decrease
in financial revenues offset by the 52.4% decrease in financial expenses.
Financial revenue in the quarter was R$39.3 million, 58.8% below the result
recorded in 2Q08. This decline was mainly due to the monetary restatement of the
recognition of PIS/COFINS credits on sector charges in 2Q08, affecting the other
revenues line, as well as the decrease in interest on energy bills paid in arrears
because of the 29.4% reduction in customer installments.
The quarters financial expense of R$50.8 million was 52.4% lower than that of
2Q08, primarily due to: (i) the decreased monetary restatement of Braslights4
liabilities as a result of a lower inflation rate, to which the balance of our debt is
indexed. This quarters adjustment index was -0.62% compared to 3.74% in 2Q08;
(ii) the smaller update of provisions for contingencies and tax liabilities, with a fall
of approximately R$20 million year-on-year; and (iii) the present value adjustment
of long-term receivables, in other financial expenses.
In 1H09, the financial result was a negative R$36.3 million compared to a positive
R$337.1 million in 1H08, once again impacted by the reversal of provisions
referring to PIS/COFINS. Financial revenue in 1H09 was R$85.5 million, a result
4 Until May 2009 these were adjusted according to the IGP-DI variation (with a one month lag) andactuarial interest of 6% p.a. Since June 2009, they have been adjusted according to the IPCA (ExtendedConsumer Price Index, with a one month lag) as a replacement to the IGP-DI.
54
Financial Result - R$ MM 2Q09 2Q08 (%) 1H09 1H08 (%)
Financial Revenues 39.3 95.4 -58.8% 85.5 149.4 -42.8%
Income - financial investments 10.5 12.5 -16.7% 27.9 25.4 9.8%Monetary and Exchange variation 9.1 8.2 10.5% 20.9 26.6 -21.3%
Swap Operations (7.2) - - (8.3) 1.6 -
Others Financial Revenues 26.9 74.6 -63.9% 45.0 95.9 -53.0%
Financial Expenses (50.8) (106.6) 52.4% (121.8) (244.6) 50.2%
Interest over loans and financing (47.2) (46.1) -2.2% (99.1) (100.8) 1.7%
Monetary and Exchange variation 3.8 (11.0) 134.7% (10.1) (47.2) 78.6%
Braslight (private pension fund) (11.3) (47.5) 76.2% (20.5) (86.3) 76.3%
Swap Operations (2.6) (5.6) 54.1% (2.6) (8.6) 70.3%
Others Financial Expenses 6.4 3.6 -78.0% 10.4 (1.7) 732.5%Subtotal (11.5) (11.3) -2.3% (36.3) (95.2) 61.9%
PIS/COFINS Provisions Reversal - 432.4 - - 432.4 -
Total (11.5) 421.1 - (36.3) 337.1 -
-
8/2/2019 NE 06-09_em ingl
21/101
42.8% lower than that recorded in 1H08, and financial expenses were R$121.8
million, a 50.2% drop compared to the financial expenses recorded in 1H08.
Indebtedness
The Companys gross debt on June 30, 2009 was R$2,217.0 million, up 2.3%compared to the amount on March 31, 2009, as a result of new debt being
contracted in the quarter. Compared to the position on June 30, 2008, the
Companys gross debt rose 11.3%, corresponding to a variation of R$224.8 million.
This growth is mainly the result of $317.0 million in new debt contracted in the last
12 months, whose primary purpose was to finance investment projects.
The R$1,647.4 million net debt was
15.2% and 6.3% higher than in March
2009 and June 2008, respectively,
because of the decrease in the cash
position that was principally due to a
R$407.9 million dividend payment in
April 2009. The net debt/EBITDA ratio
rose from 0.9x in March 2009
to 1.2x in June 2009.
Our debt position continues tobe comfortable, with an
55
R$ MM Short Term % Long Term % Total %
Brazilian Currency 311.8 14.1% 1,791.4 80.8% 2,103.2 94.9%
Debenture 1st Issue 16.1 0.7% 16.1 0.7%Debenture 4th Issue 0.0 0.0% 0.1 0.0% 0.1 0.0%BNDES Rationing 84.4 3.8% 351.1 15.8% 435.5 19.6%Debenture 5th. Issue 63.0 2.8% 903.8 40.8% 966.7 43.6%CCB Bradesco 39.2 1.8% 450.0 20.3% 489.2 22.1%ABN Amro 3.0 0.1% 80.0 3.6% 83.0 3.7%Promissory Notes 101.5 4.6% 101.5 4.6%Financial operations "Swap" 2.3 0.1% 2.3 0.1%
Others 4.6 0.2% 4.1 0.2% 8.7 0.4%Foreing Currency 21.1 1.0% 92.7 4.2% 113.8 5.1%
National Treasury 16.3 0.7% 91.9 4.1% 108.3 4.9%Import Financing 3.6 0.2% 0.8 0.0% 4.3 0.2%BNDES Import Fin. 1.2 0.1% 1.2 0.1%
Gross Debt 333.0 15.0% 1,884.1 85.0% 2,217.0 100.0%
Cash 569.6Net Debt (a) 1,647.4
Braslight (b) 93.5 912.6 1,006.1Net Regulatory Asset (c) 49.9 228.7 278.6Adjusted Net Debt (a+b-c) 2,374.9
Net Debt (ex-Braslight)
(R$ million)
1,5501,430
1,647
Jun-08 Mar-09 Jun-09
Indebtedness
(Brazilian Currency x Foreign)
93.6% 92.9% 94.9%
6.4% 7.1% 5.1%
Jun-08 Mar-09 Jun-09
Brazilian Currency Foreign Currency
-
8/2/2019 NE 06-09_em ingl
22/101
average term to maturity of 4.1 years and reduction of the average cost of dollar-
denominated debt, which was 1.6 p.p. cheaper than in March 2009 and is now at
10.4% p.a. The average cost of foreign currency debt of US$+5.3% p.a. remained
stable when compared to March 2009. At the end of June, only 5.1% of total debt
was denominated in foreign currency. After the effect of foreign currency hedging
operations, our net exposure is only 3.8% of the total. Our hedge policy consists of
protecting the cash flow falling due within the next 24 months (principal and
interest) through the use of non-cash swap instruments with premier financial
institutions.
Net income
Light posted net income of R$121.4 million this quarter, down 68.8% compared to
2Q08. This result is due to the non-recurring record of the write-off of provisions
related to the expansion of the PIS/COFINS calculation base in 2Q08, which had a
positive effect of R$285.4 million on net income for that period, compared to the
recognition of non-recurring tax credits, which had a positive impact of R$118.4
million this quarter, partially offset by the negative effect of the exchange rate
variation on LightSESAs liabilities with
the offshore company
LIR, which increased
income and social
contribution taxes
R$90.4 million this
quarter and R$39.6
million in 2Q08.
Disregarding the non-recurring effects of both quarters, net income for 2Q09 would
be R$93.4 million, 34.6% lower than in 2Q08, as demonstrated in the graph on the
right.
Net income in the first
half of 2009 was
R$289.7 million,
compared to the
R$492.1 million
recorded in 1H08.
56
285.4
118.4 90.4 121.4
388.6
142.8
93.439.6
Net Income
2Q08 - Pro
forma
PIS/COFINS -
net e ffect
Net effect -
offshore
exchange
rate
variation
Net income
2Q08 -
w/out non-
recurring
effects
Net income
2Q09 -
w/out non-
recurring
effects
Tax credits Net effect -
offshore
exchange
rate
variation
Net income
2Q09
-34.6%
285.4118.4 95.9 289.7
492.1
251.6 267.2
44.9
Net Income
1H08 - Pro
forma
PIS/COFINS -
net e ffect
Net effect -
offshore
exchange
rate
variation
Net income
2Q08 -
w/out non-
recurring
effects
Net income
2Q09 -
w/out non-
recurring
effects
Tax credits Net effect -
offshore
exchange
rate
variation
Net income
1H09
6,2%
-
8/2/2019 NE 06-09_em ingl
23/101
Disregarding the aforementioned non-recurring effects in both periods, net income
in 1H09 would be R$267.2 million, 6.2% higher than in 1H08.
Capital Expenditures
In 1Q09, the Company invested
R$79.9 million in investment
projects, including the
development of distribution
networks (new connections,
capacity increases and repairs)
and quality improvements(structural optimization and
preventive maintenance), which
absorbed R$52.8 million, and
loss-prevention initiatives totaling R$19.1 million. In the generation segment,
investments totaled R$4.3 million, chiefly allocated to maintenance of the existing
generation complex.
Investments in fixed assets totaled R$250.6 million in 1H09, which includes the
financial charges originating from the Companys loans with financial institutions,
the accounting effect of monetary restatement of use of public property from the
Itaocara Plant, provided in the Plants concession agreement, and materials in
inventory that have not yet been activated.
Projects for Expansion of the Generation Capacity
The second quarter of 2009 saw the following developments in the projects for
expansion of Lights generation capacity:
The EPC consortiums proposals for the construction of the Paracambi SHPP
were received. These proposals were submitted to the Board of Directors, and the
contracting of the winning consortium, comprised of the companies Orteng
Equipamentos e Sistemas Ltda. and Construtora Quebec Ltda., was approved at the
Board of Directors Meeting of August 7. The projects total cost is approximately
R$195 million and construction is slated to begin in September, with commercial
operations expected to begin in August of 2011.
57
CAPEX (R$ MM)
221.7
172.8
237.3
203.99.1
17.411.8
6.51.9
0.0
1H08 1H09
Distribution Administration Generation Commercial.
-
8/2/2019 NE 06-09_em ingl
24/101
The Consortium with CEMIG for the construction of the Paracambi SHPP is
being turned into an SPE (Special Purpose Entity), in view of the requirements of
the Brazilian Development Bank (BNDES) to grant Project Finance loans for a
project.
Bids have been requested to choose the company that will build the supply
system for the Lajes SHPP, and construction is expected to start at the beginning of
September.
In addition to these projects, the Company is considering participation in other
generation projects, which together ensure the increase of installed generation
capacity by at least 50%.
Cash Flow
In
2Q09, Lights cash generation was a negative R$166.6 million, primarily as a result
of the R$407.9 million dividend payment made in April. Cash generation before the
dividend payment was R$241.2 million in the quarter, R$192.9 million more than
that of 2Q08.
This result is chiefly due to the increase in cash generated by operations, mainly
explained by: (i) the decrease in taxes, which had a negative impact in 2Q08 due
to the activation of PIS/COFINS credits related to charges, against the positive
impact this quarter resulting from the higher provision for taxes (an effect of the
58
R $ M M 2Q09 2Q08 1H09Cash i n t he Beg i nn i ng o f t he P e r i od (1 ) 736.3 394.3 590.1N e t I n c o m e 121.4 388.6 289.7
Provision for Delinquency 66.5 47.4 126.5Depreciation and Amortization 76.1 80.3 152.4Net Interests and Monetary Variations 45.9 40.6 88.7Braslight 11.3 71.4 20.5
Atualization / provisions reversal 18.4 (386.9) 23.5Others (54.8) 200.0 11.0
N e t I n c o m e Ca s h B a s i s 284.8 441.4 712.4Working Capital 37.2 (86.9) (110.7)Regulatories (RTE, CVA e Bubble) 68.7 27.6 89.4Contingencies (34.9) (16.8) (52.1)Taxes 28.9 (273.1) 57.2Others (25.7) 103.3 (38.6)Cash f r om O pe ra t i ng Ac t i v i ti e s ( 2 ) 359.0 195.5 657.6Dividends Payment (407.9) - (407.9)Finance Obtained 101.3 75.4 123.9Debt Service and Amortization (91.4) (73.1) (161.6)F i nanc i ng Ac t i v i t i e s ( 3 ) (398.0) 2.3 (445.5)Share Participations - - -Concession Investments (128.9) (149.4) (239.5)
Assets Alienation 1.2 - 6.9I n ves tm en t Ac t i v i t ie s ( 4 ) (127.7) (149.4) (232.6)Ca sh in th e En d o f th e P e r i od (1 + 2 + 3 + 4 ) 5 6 9 .6 442 . 6 569 . 6Ca sh G e ne ra t io n (2 + 3 + 4 ) (1 6 6 .6 ) 48 . 3 (20 . 5 )
-
8/2/2019 NE 06-09_em ingl
25/101
dollars depreciation on Light SESAs debt with LIR); and (ii) the positive R$37.2
million working capital, mainly due to this quarters high collection index which
exceeded the 100% mark.
In financing activities, the negative result is due to the payment of dividends in
April, whereas in 2Q08 no dividends were paid. The net result of financing obtained
and debt service remained stable year-on-year.
Net cash used in investing activities in the quarter was 13.8% below that of the
same period of 2008. This decrease is explained mainly by the delayed investments
in the loss-prevention program, which should be expedited over the year.
Corporate Governance and the Capital Markets
On June 30, 2009, the capital stock of Light S.A. was comprised of 203,934,060
common shares with no par value. The controlling group, Rio Minas Energia (RME),
retains 52.1% of the capital stock.
On July 14, 2009 the Company published the notice of commencement of its
secondary public distribution of shares issued by Light S.A., whereby 29,470,480
shares were placed, of which 16,079,135 shares were held by BNDESPar and
13,391,345 shares were held by EDF. The total number of shares sold corresponds
to 14.4% of the Companys capital stock. The offering price, determined in thebookbuilding process, was R$24.00, for a total of R$707.3 million.
59
Countrys biggestindividual electricitydistributor
Andrade Gutierrez Groupsdivision that invests inpublic services concession
Brazilian privateinvestors group(includes Brasligt)
Holding thatcontrols CEMAR.
AGCAndrade Gutierrez
Concesses
LUCELUCE do Brasil
Fundo de Investimento
em Participa
es
EQUATORIALEquatorial Energia
RMERio Minas Energia
Participaes S.A.
LIGHT S.A.
25% 25% 25% 25%
52.1%
BNDESPAR
MARKET
33.6%
14.3%
FreeFloat
: 47.9%
CEMIGCompanhia Energ
tica
de Minas Gerais
-
8/2/2019 NE 06-09_em ingl
26/101
With this operation, the effective free float of shares has increased from 7.7% to
22.1% of the capital stock, giving greater liquidity to shares. The table below shows
the Companys ownership structure before and after the offer.
The Company's shares have been listed on Bovespa's Novo Mercado since July of
2005, 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 listed on the Ibovespa, Itag, IGC, IEE, IBrX
and ISE indexes.
Lights Board of Directors is composed of 11 members, 2 of whom are elected
independently. The following five committees support the Board of Directors:
Finance, Management, Audit, Human Resources, and Governance and
Sustainability.
The first payment of dividends approved at the Annual and Extraordinary General
Meeting held on March 18, 2009, in the amount of R$2.00 per share, was paid on
April 2, 2009. The second payment, in the amount of R$0.45 per share, is
scheduled for November 27, 2009.
In the Extraordinary General Meeting held on July 9, 2009, Mr. Carlos Roberto
Teixeira Junger was elected to the position of sitting member and Mr. Ricardo
Simonsen to the position of alternate member of the Companys Board of Directors.
These members will remain in office until the Annual General Meeting that approves
the accounts of the year to end on December 31, 2009.
In the Board of Directors meeting held on July 17, 2009, Mr. Gustavo Csar de
Alencar was elected to the position of Network Officer for the same term of office as
the Companys other executive officers elected at the Board of Directors Meeting
held on August 10, 2006, with duties and responsibilities in relation to the followingissues: (i) operation and maintenance of the electricity network in any voltage,
60
Shareholders number of shares % number of shares %
RME (Controlling Shareholder) 106,304,597 52.1% 106,304,597 52.1%BNDESPar 68,555,918 33.6% 52,476,783 25.7%EDF 13,391,345 6.6% - -Market 15,682,200 7.7% 45,152,680 22.1%Total 203,934,060 203,934,060
june 30th
2009 Post Offering
-
8/2/2019 NE 06-09_em ingl
27/101
except for those of Light Energia; (ii) planning, engineering and expansion of the
distribution system; and (iii) automation, protection and metering systems.
The new duties and responsibilities of the Chief Operations and Customers Officerare related to: (i) customer service: (ii) billing; (iii) collection; (iv) energy recovery;
(v) services; (vi) energy purchase; (vii) market projection; (viii) sale of energy on
the free market; and (ix) coordination of the operational activities of the company
and its subsidiaries.
At the
end of the quarter, Lights has appreciated 21.5%, with an average daily trading
volume of R$6.9 million. The IEE (Bovespas Electric Power Index) was up 22.1% in
the same period, in step with Ibovespas 25.8% appreciation. The graph below
shows the performance of Lights stock since RME took control on August 10, 2006.
Recent Events
Secondary Offering of Shares: On July 14, 2009 the Company published the
notice of commencement of its secondary public distribution of shares issued by
Light S.A., whereby 29,470,480 shares were placed, corresponding to 14.4% of the
Companys capital stock. The offering price, determined in the bookbuilding
61
Note: shares quotations are dividends adjusted.
BOVESPA (spot market) - LIGT3Daily Average 2Q09 1Q09 2Q08
Number of shares traded (Million) 286.26 240.59 222.14
Number of Transactions 691 557 348
Traded Volume (R$ Million) $6.9 $5.8 $5.5Quotation per lot of 1000 shares: $26.95 $22.18 $19.18
Share Valuing 21.5% 11.9% 3.7%
IEE Valuing 22.1% 9.4% 13.7%
Ibovespa Valuing 25.8% 9.0% 6.6%
Light x Ibovespa x IEE
08/10/06 = 100 until 07/31/09
80
100
120
140
160
180
200
220
240
260
Aug-06
Sep-06
Oct-0
6
Nov-06
Dec-06
Jan-07
Feb-
07
Mar
-07
Apr-07
May
-07
Jun-07
Jul-0
7
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-
08
Mar
-08
Apr-0
8
May
-08
Jun-08
Jul-0
8
Aug-08
Sep-08
Oct-0
8
Nov-08
Dec-08
Jan-09
Feb-
09
Mar
-09
Apr-0
9
May
-09
Jun-09
Jul-0
9
108% Light
47% Ibovespa
76% IEE
R$/share08/10/06 11.67
07/31/09 24.30
2008
IEE -12%IBOV -41%
LIGT3 -14%
2009
IEE 37%
IBOV 46%LIGT3 23%
-
8/2/2019 NE 06-09_em ingl
28/101
process, was R$24.00, for a total of R$707.3 million. With this operation, the
effective free float of shares increased to 22.1% of the capital stock.
6th Issue of Debentures: At the end of July 2009, Light SESA concluded its 6 th
issue of simple debentures, not convertible into shares. The issued totaled R$300
million, remunerated at 115% of the CDI rate as determined in the bookbuilding
process, compared to the initial expected remuneration of 133% of the CDI rate.
The debentures were issued on June 1, 2009 and will be amortized in a single
installment on June 1, 2011. The purpose of the issue was the early redemption of
Light SESAs 1st issue of promissory notes in the amount of R$110 million, in
addition to reinforcing the Companys working capital.
Credit Rating: Light SESAs corporate credit rating was raised by Standard &
Poors to brA+ and was included in Moodys Latin America credit coverage with an
Aa2.br rating.
ABRADEE Award: Last July, Light SESA won the 2009 ABRADEE Award in the
Performance Evolution category. This award acknowledges the company with the
highest ratio between the total score in the general category in the reference year
and the weighted average of the total score in the general category in the last three
editions of the award nationally. The evaluation criteria are: Customer Evaluation,
Operational Management, Economic-Financial Management, Management Quality
and Social Responsibility. This award shows that Light has grown in every aspect
and in a balanced way, reflecting the Companys focus on sustainability that
emphasizes both socio-environmental and economic-financial issues.
New Department: At the Board of Directors Meeting held on July 17,
2009, a new department was created the Network Department with duties and
responsibilities over the following issues: (i) operation and maintenance of the
electricity network in any voltage, except for those of Light Energia; (ii) planning,
engineering and expansion of the distribution system; and (iii) automation,
protection and metering systems, which were previously exercised by the Chief
Operations and Customers Officer.
Contracting of EPC for construction of Paracambi PCH: at the
Board of Directors Meeting held on August 7, the contracting of a consortium for
construction of the Paracambi PCH was approved. The projects total cost is
approximately R$195 million and construction is slated to begin in September with
commercial operations expected to begin in August of 2011.
Disclosure Program
62
-
8/2/2019 NE 06-09_em ingl
29/101
Teleconference
Brazil: (55) 11 - 2188 0188USA: +1 866 890 2584Other countries: +1 646 843 6045Access code: Light
Conference Call - Dial number:
Schedule
08/12/2009, wednesday, at 10:00 a.m. (Braslia) and at 9:00 a.m. (Eastern
time), with simultaneous translation to English
Webcast: link on site www.light.com.br (portuguese and english)Access conditions:
Disclaimer
The information on the Companys operations and its Managements expectations regarding its future
performance was not revised by independent auditors.
Forward-looking statements are subject to risks and uncertainties. These statements are based on the
beliefs and assumptions of our Management and on information currently available to the Company.
Statements about future events include information about our intentions, beliefs or current expectations,
as well as those of the Company's Board of Directors and Officers. Reservations related to statements and
information about the future also include information about operating results, likely or presumed, as well
as statements that are preceded by, followed by, or including words such as "believes," "might," "will,"
"continues," "expects," "estimates," "intends," "anticipates," or similar expressions. Statements and
information about the future are not a guarantee of performance. They involve risks, uncertainties and
assumptions because they refer to future events, thus depending on circumstances that may or may not
occur. Future results and creation of value to shareholders might significantly differ from those expressed
or suggested by forward-looking statements. Many of the factors that will determine these results and
values are beyond LIGHT S.A.'s control or forecast capacity.
63
-
8/2/2019 NE 06-09_em ingl
30/101
APPENDIX I
Statement of Income by Company - R$ million
LIGHT SESA 2Q09 2Q081 % 1H09 1H081 %
Operating Revenue 1,981.2 1,961.5 1.0% 4,223.7 3,932.9 7.4%
Deductions from the operating revenue (777.7) (726.7) 7.0% (1,650.4) (1,464.1) 12.7%
Net operating revenue 1,203.5 1,234.8 -2.5% 2,573.3 2,468.8 4.2%
Operating expense (1,092.6) (1,025.1) 6.6% (2,219.7) (2,087.0) 6.4%
Operating result 110.9 209.7 -47.1% 353.6 381.8 -7.4%
EBITDA 180.8 283.6 -36.3% 493.6 528.4 -6.6%Equity equivalence - - - - - -Financial Result (16.4) 423.9 -103.9% (36.1) 350.1 -Other Operating Incomes 1.6 (0.3) - 7.7 16.5 -53.6%Other Operating Expenses (4.3) (5.4) -19.9% (5.1) (4.3) 19.3%Result before taxes and interest 91.8 627.9 -85.4% 320.0 744.1 -57.0%
Net Income 99.4 361.5 -72.5% 254.8 435.6 -41.5%
EBITDA Margin 15.0% 23.0% - 19.2% 21.4% -
LIGHT ENERGIA 2Q09 2Q08 % 1H09 1H08 %
Operating Revenue 83.1 76.4 8.8% 165.5 174.0 -4.9%Deductions from the operating revenue (9.7) (9.5) 1.7% (20.4) (21.4) -4.6%
Net operating revenue 73.4 66.9 9.8% 145.1 152.6 -4.9%Operating expense (31.6) (30.2) 4.7% (64.7) (60.9) 6.1%
Operating result 41.8 36.7 13.9% 80.5 91.7 -12.3%
EBITDA 47.9 43.0 11.4% 92.6 104.3 -11.2%Equity equivalence - - - - - -Financial Result 4.7 (3.0) -256.7% (1.4) (13.5) -89.6%Other Operating Incomes 0.4 - - 0.4 - -Other Operating Expenses - - - - - -Result before taxes and interest 46.9 33.7 39.0% 79.4 78.2 1.5%
Net Income 31.4 22.5 39.2% 52.4 51.4 2.0%
EBITDA Margin 65.2% 64.3% - 63.8% 68.3% -
LIGHT ESCO 2Q09 2Q08 % 1H09 1H08 %
Operating Revenue 23.3 20.3 15.2% 45.9 55.9 -17.8%Deductions from the operating revenue (4.3) (3.7) 15.6% (8.9) (9.4) -4.6%
Net operating revenue 19.1 16.6 15.1% 37.0 46.5 -20.5%Operating expense (15.7) (10.2) 54.5% (30.9) (34.8) -11.2%
Operating result 3.3 6.4 -47.7% 6.1 11.7 -47.9%
EBITDA 3.5 6.6 -47.1% 6.4 12.1 -47.2%
Equity equivalence - - - - - -Financial Result 0.2 0.2 12.5% 0.4 0.4 0.3%Other Operating Incomes - - - - - -Other Operating Expenses - - - - - -Result before taxes and interest 3.5 6.6 -46.7% 6.5 12.1 -46.4%
Net Income 2.3 4.2 -46.4% 4.1 7.3 -43.3%
EBITDA Margin 18.3% 39.8% - 17.3% 26.1% -1 Figures are presented pro forma as explained on exhibit V, where the adjustments are detailed
64
-
8/2/2019 NE 06-09_em ingl
31/101
APPENDIX II
Statement of Consolidated Income
65
Consolidated - R$ MM 1Q09 1Q08 % 1H09 1H08 %
OPERATING REVENUE 2,064.9 2,037.5 1.3% 4,390.6 4,108.1 6.9%
DEDUCTIONS FROM THE REVENUE (791.6) (739.9) 7.0% (1,679.7) (1,494.8) 12.4%
NET OPERATING REVENUE 1,273.3 1,297.6 -1.9% 2,710.9 2,613.3 3.7%
OPERATING EXPENSE (1,128.8) (1,043.5) 8.2% (2,293.1) (2,130.4) 7.6%Personnel (62.7) (49.9) 25.7% (124.8) (103.9) 20.0%Material (6.5) (3.6) 80.6% (10.9) (7.5) 46.0%Outsourced Services (63.9) (64.4) -0.7% (122.7) (126.7) -3.1%Purchased Energy (811.9) (715.6) 13.5% (1,683.8) (1,500.8) 12.2%Depreciation (76.1) (80.3) -5.3% (152.4) (159.4) -4.4%Provisions (85.0) (111.3) -23.6% (150.6) (187.5) -19.7%Others (22.8) (18.5) 23.0% (47.9) (44.7) 7.2%
OPERATING RESULT() 144.5 254.0 -43.1% 417.7 482.9 -13.5%
EBITDA () 220.6 334.3 -34.0% 570.1 642.3 -11.2%
EQUITY EQUIVALENCE
FINANCIAL RESULT (11.5) 421.1 -102.7% (36.3) 337.1 -110.8%Financial Income 39.3 95.4 -58.8% 85.5 149.4 -42.8%Financial Expenses (50.8) 325.7 -115.6% (121.8) 187.7 -164.9%
Other Operating Incomes 1.9 (0.3) -756.0% 8.0 16.5 -51.4%Other Operating Expenses (4.3) (5.4) -19.9% (5.1) (4.3) 19.3%
RESULT BEFORE TAXES AND INTEREST 130.6 669.5 -80.5% 384.3 832.3 -53.8%
SOCIAL CONTRIBUTIONS & INCOME TAX (74.0) (82.8) -10.6% (107.6) (145.8) -26.2%DEFERRED INCOME TAX 71.7 (193.8) 27.1 (182.3) -114.8%PLR (6.9) (4.3) 58.8% (14.1) (12.2) 15.5%
NET INCOME 121.4 388.6 -68.8% 289.7 492.1 -41.1%
() Operation Result, Administration vision = Operating Result, accounting norms (Item 1.9.7 of Notice CVM 01/2007) + financials
(net financial expenses + equity pick-up)
() EBITDA = Operating Result, Administration vision + depreciation and amortization. Not reviewable by the external audit
-
8/2/2019 NE 06-09_em ingl
32/101
APPENDIX III
Consolidated Balance Sheet
66
Consolidated Balance Sheet - R$ MMASSETS 6/30/2009 3/31/2009
Circulating 2,851.0 3,332.1Cash & Cash Equivalents 569.6 736.3Credits 2,102.9 2,277.0Inventories 20.0 19.9Others 158.4 298.9
Non Circulating 6,347.1 6,198.8Realizable in the Long Term 1,906.4 1,806.2
Miscellaneous Credits 1,449.6 1,381.7Others 456.8 424.5
Investments 18.8 18.6Net Fixed Assets 4,150.7 4,097.2Intangible 271.2 276.8Deferred Charges 0.0 0.0
Total Assets 9,198.1 9,530.9
LIABILITIES 6/30/2009 3/31/2009
Circulating 1,738.0 2,117.9Loans and Financing 253.9 115.3
Debentures 79.0 46.0Suppliers 469.0 550.0Taxes, Fees and Contributions 178.1 145.5Dividends to pay 91.8 499.6Provisions 162.1 174.6Others 503.9 586.8
Non Circulating 4,346.7 4,431.1Long-Term Liabilities 4,346.7 4,431.1Loans and Financing 980.3 1,024.1Debentures 903.8 920.9Provisions 1,014.5 1,010.2Others 1,448.0 1,475.8
Outcome of future performance - -
Net Assets 3,113.5 2,982.0Realized Joint Stock 2,225.8 2,225.8Capital Reserve 42.5 32.4Legal Reserve 103.8 103.8Profits Retention 451.7 451.7Accumulated Profit/Loss of Exercise 289.7 168.3
Total Liabilities 9,198.1 9,530.9
-
8/2/2019 NE 06-09_em ingl
33/101
APPENDIX IV
Regulatory Assets and Liabilities
REGULATORY ASSETS R$ MM6/30/2009 3/31/2009 6/30/2009 3/31/2009
Customers, Concessionaires and Permissionaires 36.6 52.5 - -
Tariff Readjustment 36.6 52.5 - -
Despesas Pagas Antecipadamente 84.8 220.9 229.7 216.4
CVA 75.5 146.1 229.7 216.4
Other Regulatories 9.3 18.0 - -
Part A - 56.8 - -
Total 121.5 273.5 229.7 216.4
REGULATORY LIABILITIES R$ MM
Regulatory Liabilities (71.6) (105.9) (1.0) (1.3)
Part A (16.2) - - -
CVA (49.6) (94.9) (1.0) (1.3)
Other Regulatories (5.8) (11.0) - -Total (71.6) (105.9) (1.0) (1.3)
TOTAL 49.9 167.5 228.7 215.1
Short Term Long Term
Light Figures
OPERATING INDICATORS 2Q09 2Q08 Var. %
N of Consumers (thousands) 3,946 3,901 1.1%
N of Employees 3,734 3,812 -2.0%
Average distribution tariff - R$/MWh 411.9 395.8 4.0%Average distribution tariff - R$/MWh (w/out taxes) 282.9 268.0 5.6%
Average energy purchase cost R$/MWh 110.2 90.3 22.1%
Generation Capacity (MW) 855 855 -
Assured Energy (MW) 537 537 -
Net Generation (GWh) 1,309 1,287 1.7%
Charge Factor 65.7% 66.0% -
Includes net energy purchase/sell in the spot market
67
-
8/2/2019 NE 06-09_em ingl
34/101
APPENDIX V
According to CVM Rule 506, 2Q08 and 1Q08 results are being re-presented to
reflect the impacts of Law 11,638/07 for comparability with 2Q09 and 1Q09
information. We are also presenting 2Q08 and 1H08 results with the reclassification
of the costs and expenses referring to the employee profit sharing program (PLR)
after determination of income tax. The reconciliation is as follows:
Light S.A. (R$ million)
Published Reclassification Adjust Pro Forma
2Q08 PLR Law 11.638/07 2Q08
Operating Revenue 2,037.5 2,037.5
Operating Revenue Deductions (739.9) (739.9)
Net Operating Revenue 1,297.6 1,297.6
Operating Expenses (1,052.8) 4.3 5.0 (1,043.5)
Operating Result 244.7 254.0
EBITDA 327.2 334.3
Financial Result
Revenues 95.4 95.4Expenses 325.7 325.7
Total 421.1 421.1
Others Operating Revenues (0.3) (0.3)
Others Operating Expenses (5.4) (5.4)
Result before taxes 660.2 669.5
IR/CS + Deferred (274.8) (1.7) (276.5)
PLR - Participations (4.3) (4.3)
Net Income 385.3 388.6
68
-
8/2/2019 NE 06-09_em ingl
35/101
Published Reclassification Adjust Pro Forma
1H08 PLR Law 11.638/07 1H08
Operating Revenue 4,108.1 4,108.1
Operating Revenue Deductions (1,494.8) (1,494.8)
Net Operating Revenue 2,613.3 2,613.3
Operating Expenses (2,146.7) 12.2 4.1 (2,130.4)
Operating Result 466.6 482.9
EBITDA 631.2 642.3
Financial Result
Revenues 149.4 149.4Expenses 187.7 187.7Total 337.1 337.1
Others Operating Revenues 16.5 16.5Others Operating Expenses (4.3) (4.3)
Result before taxes 816.0 832.3
IR/CS + Deferred (326.6) (1.4) (328.0)
PLR - Participations (12.2) (12.2)
Net Income 489.4 492.1
69
-
8/2/2019 NE 06-09_em ingl
36/101
Light S.A.
Report of independent auditors on specialreview of the Quarterly FinancialInformation (ITR)
Quarter ended June 30, 2009(A translation of the original report in Portuguese, as filed with the
Brazilian Securities and Exchange Commission (CVM) containingquarterly information prepared in accordance with the regulationsissued by the CVM)
35
-
8/2/2019 NE 06-09_em ingl
37/101
Review Report of Independent Auditors
(A translation of the original report in Portuguese, as filed with the Brazilian Securities andExchange Commission (CVM) containing quarterly information prepared in accordance withthe regulations issued by the CVM)
To theBoard of Directors and Shareholders ofLight S.A.Rio de Janeiro - RJ
1. We have reviewed the accounting information included in Quarterly Financial
Information - ITR - of Light S.A. and the consolidated Quarterly Financial Information of
this Company and its subsidiaries for the quarter ended June 30, 2009, comprising the
balance sheet, the statements of income, of changes in shareholders equity and of cash
flows, the performance report, and explanatory notes, prepared under the responsibility of
the Companys management.
2. Our review was performed in accordance with the review standards established by the
IBRACON - Brazilian Institute of Independent Auditors and the Federal Council of
Accountancy - CFC, which comprised, mainly: (a) inquiries and discussions with the
persons responsible for the Accounting, Financial and Operational areas of the Company
and its subsidiaries, as to the main criteria adopted in the preparation of the Quarterly
Financial Information; and (b) reviewing information and subsequent events that have or
may have material effects on the financial situation and operations of the Company and its
subsidiaries.
3. Based on our review, we are not aware of any material changes that should be made to
the accounting information contained in the Quarterly Financial Information
aforementioned for it to be in accordance with the accounting practices adopted in Brazil
and the standards issued by the Brazilian Securities and Exchange Commission - CVM -
applicable to the preparation of the Quarterly Information.
4. As described in Note 2, as a result of the changes to the accounting practices adopted inBrazil in 2008, the statements of income and of cash flows for the first quarter ended June
30, 2008, presented for comparison purposes, were adjusted and are being re-presented, as
36
-
8/2/2019 NE 06-09_em ingl
38/101
provided for by NPC 12 - Accounting Practices, Changes in Accounting Estimates and
Error Correction, approved by CVM Resolution 506.
5. The financial statements of Fundao de Seguridade Social Braslight for the four-month
period ended April 30, 2009, were examined by other independent auditors whose opinion,dated June 2, 2009, includes an emphasis paragraph regarding the balance of R$133,520
thousand related to tax credits arising from the Entitys tax court case which was successful
in obtaining a final and non-appeasable decision, which, according to the Managements
forecast, will allow them to utilize these credits to offset taxes payable in future years. The
future realization of the credits is subject to the completion of the offset process with the
Federal Tax Authority (Secretaria da Receita Federal), which the Entity suspended in
September 2005. If the Entity does not complete the offset process, they may eventually
record a provision for this asset. This asset, which guarantees the Entitys actuarial reserves,
was deducted from calculation of the subsidiaries actuarial deficit, as required by
Resolution n 371/00 of the Brazilian Securities and Exchange Commission - CVM.
Consequently, in the event that a provision is recorded for this amount, Companys liability
may be proportionally adjusted.
6. As mentioned in Note 30, due to the second periodical review of tariffs of the
subsidiary Light Servios de Eletricidade S.A. as set forth in the concession agreement, the
National Regulatory Electricity Agency - ANEEL temporarily ratified the subsidiarys tariff
repositioning on 1.96%, to be applied during the period beginning November 7, 2008.
Considering the 2.30% interest on sales, the tariffs impact reaches 4.27%. Additional
changes that may result from the final review, if any, will be reflected in the equity and
financial position of the Company and its subsidiary in the following periods.
August 7, 2009
KPMG Auditores Independentes
CRC SP-14428/O-6 F-RJ
Vnia Andrade de SouzaAccountant CRC RJ-057497-O-2
37
-
8/2/2019 NE 06-09_em ingl
39/101
(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
June 30, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
Notes 30/6/2009 31/3/2009 30/6/2009 31/3/2009
CURRENT
Cash and Cash Equivalents 4 3.632 3.327 569.637 736.273
Consumers, concessionaires and permissionaires 5 - - 1.306.261 1.495.599
Recoverable Taxes 6 660 633 716.982 706.820
Inventories - - 20.024 19.877
Receivables from swap transactions 27 - - 2.320 6.302
Dividends receivable 91.770 499.638 - -
Services - - 77.380 68.291
Prepaid expenses 7 47 91 91.195 224.772Other receivables 8 136 182 67.228 74.165
96.245 503.871 2.851.027 3.332.099
NON-CURRENT ASSETS 3.110.703 2.979.189 6.347.099 6.198.796
LONG-TERM ASSETS
Consumers, concessionaires and permissionaires 5 - - 306.097 297.458
Recoverable Taxes 6 - - 1.143.478 1.080.068
Receivables from swap transactions 27 - - - 4.189
Escrow deposits 151 121 208.575 196.587
Prepaid expenses 7 - - 239.504 220.019
Other receivables 8 - - 8.728 7.870
151 121 1.906.382 1.806.191
Investments 9 3.110.552 2.979.068 18.807 18.640
Property, Plant and Equipment 10 - - 4.150.722 4.097.180
Intangible assets 11 - - 271.188 276.785
Deferred charges - - - -
3.206.948 3.483.060 9.198.126 9.530.895
ASSETS
Parent Company Consolidated
LIGHT S.A.
BALANCE SHEETS ON JUNE 30, 2009
(In thousands of reais)
35
-
8/2/2019 NE 06-09_em ingl
40/101
(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
June 30, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
Notes 30/6/2009 31/3/2009 30/6/2009 31/3/2009
CURRENT
Suppliers 12 70 167 469.005 550.002
Payroll 28 4 2.264 1.845
Taxes 6 42 5 178.146 145.489
Loans, financing and financial charges 13 - - 253.945 152.020
Debentures and financial charges 14 - - 79.028 69.413
Dividends Payable 91.770 499.638 91.770 499.638
Estimated Liabilities 134 26 49.038 63.634
Regulatory charges - consumer contributions 15 - - 110.870 108.727
Provision for contingencies 16 - - 2.237 2.237
Pension plan and other employee benefits 18 - - 93.469 93.780
Other Liabilities 17 1.427 1.251 408.212 431.08193.471 501.091 1.737.984 2.117.866
NON-CURRENT LIABILITIES - - 4.346.665 4.431.060
LONG-TERM LIABILITIES
Suppliers 12 - - - -
Loans, financing and financial charges 13 - - 980.340 1.024.129
Debentures and financial charges 14 - - 903.848 920.911
Taxes 6 - - 330.434 327.842
Provision for contingencies 16 - - 1.014.479 1.010.231
Pension plan and other employee benefits 18 - - 912.649 924.219
Other Liabilities 17 - - 204.915 223.728
- - 4.346.665 4.431.060
DEFERRED INCOME - - - -
SHAREHOLDERS' EQUITY
Capital stock 20 2.225.822 2.225.819 2.225.822 2.225.819
Profits reserve 20 555.426 555.426 555.426 555.426
Capital reserve 31 42.504 32.436 42.504 32.436
Retained earnings (accumulated losses) 289.725 168.288 289.725 168.288
3.113.477 2.981.969 3.113.477 2.981.969
3.206.948 3.483.060 9.198.126 9.530.895
Parent Company Consolidated
BALANCE SHEETS ON JUNE 30, 2009
LIGHT S.A.
(In thousands of reais)
LIABILITIES
36
-
8/2/2019 NE 06-09_em ingl
41/101
(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
June 30, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
Par ent C omp an y Parent Company Parent Company Parent Comp an y
Notes 4/1/2009 to 6/30/2009 1/1/2009 to 6/30/2009 4/1/2008 to 6/30/2008 1/1/2008 to 6/30/2008
OPERATING I NCOME
Electric Power Supply 21 - - - -
Electric Power Supply 21 - - - -
Other Revenues 22 - - - -
- - - -
Deductions from operating revenues
ICMS
Consumer Charges 23 - - - -
PIS/COFINS - - - -
Other - - - -
- - - -
NET OPERATING REVENUE - - - -
ELECTRIC POWER COST
Electric Power Purchased for Resale 25 - - - -
- - - -
OPERATIONAL COST
Personnel 24 - - - -
Material 24 - - - -
Outsourced services 24 - - - -
Allowances 24 - - - -
Depreciation and amortizat ion 24 - - - -
Other 24 - - - -
- - - -
GROSS OPERATING PROFIT - - - -
OPERATING EXPENSES
Selling 24
General and administrative 24 (11.623) (22.466) (1.339) (2.373)
(11.623) (22.466) (1.339) (2.373)
EQUITY ACCOUNTING 133.012 311.336 404.639 509.076-
FINANCIAL REVENUES (EXPENSES)
Revenues 26 268 1.103 36 97
Expenses 26 (218) (241) - (1)
50 862 36 96
OTHER OPERATING REVENUES (EXPENSES)
Revenues
Expenses
- - - -
OPERATING I NCOME 121.439 289.732 403.336 506.799
Non-operatin g income - - - -
Non-operatin g expense s - - - -
NON-OPERATING INCOME - - - -
INCOME BEFORE TAXES
AND INTEREST 121.439 289.732 403.336 506.799
Income tax and social contribution 6
PROFIT/(LOSS) BEFORE INTEREST 121.439 289.732 403.336 506.799
Interest (2) (7) - -
INCOME/(LOSS) FOR THE YEAR 121.437 289.725 403.336 506.799
Income/(Loss) per share - R$ 0,59547 1,42068 1,98236 2,49087
No. of shares 203.934 .060 203.934.060 203.462.739 203.462.739
LIGHT S.A.
STATEMENT OF INCOME FOR THE PERIOD ENDED JUNE 30, 2009 AND 2008
(In thousands of reais)
37
-
8/2/2019 NE 06-09_em ingl
42/101
(A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
June 30, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
Consolidated Consolidated Consolidated Consolidated
Notes
4/1/2009 to 6/30/2009 1/1/2009 to 6/30/2009 4/1/2008 to 6/30/2008 1/1/2008 to 6/30/2008
OPERATING INCOME
Electric Power Supply 21 1.832.084 3.933.474 1.793.863 3.615.337
Electric Power Supply 21 94.746 178.897 81.718 186.344
Other Revenues 22 138.086 278.180 161.901 306.431
2.064.916 4.390.551 2.037.482 4.108.112
Deductions from operating revenues
ICMS (508.127) (1.075.675) (486.121) (989.649)
Consumer Charges 23 (186.252) (377.482) (129.051) (248.082)
PIS/COFINS (96.833) (224.874) (124.248) (255.446)
Other (406) (1.670) (490) (1.617)
(791.618) (1.679.701) (739.910) (1.494.794)
NET OPERATING REVENUE 1.273.298 2.710.850 1.297.572 2.613.318
ELECTRIC POWER COST
Electric Power Purchased for Resale 25 (811.854) (1.683.847) (715.575) (1.500.757)
(811.854) (1.683.847) (715.575) (1.500.757)
OPERATIONAL COST
Personnel 24 (46.045) (78.634) (31.423) (65.522)Material 24 (5.299) (8.966) (2.934) (6.140)
Outsourced services 24 (27.984) (53.439) (28.028) (55.174)
Allowances 24 - - - -
Depreciation and amortization 24 (67.177) (134.587) (70.668) (140.110)
Other 24 (4.274) (8.973) (4.008) (8.164)
(150.779) (284.599) (137.061) (275.110)
GROSS OPERATING PROFIT 310.665 742.404 444.936 837.451
OPERATING EXPENSES
Selling 24 (86.630) (164.063) (65.753) (144.227)
General and administrative 24 (79.539) (160.633) (125.148) (210.290)
(166.169) (324.696) (190.901) (354.517)
EQUITY ACCOUNTING - - - --
FINANCIAL REVENUES (EXPENSES)
Revenues 26 39.259 85.528 99.970 154.028
Expenses 26 (50.789) (121.810) 321.112 183.094
(11.530) (36.282) 421.082 337.122
OTHER OPERATING REVENUES (EXPENSES)
Revenues 1.909 8.023 (291) 16.521
Expenses (4.293) (5.126) (5.362) (4.298)
(2.384) 2.897 (5.653) 12.223
OPERATING INCOME 130.582 384.323 669.464 832.279
Non-operating income - - - -
Non-operating exp enses - - - -
NON-OPERATING INCOME - - - -
INCOME BEFORE TAXES
AND INTEREST 130.582 384.323 669.464 832.279
Income tax and social contribution 6 (2.279) (80.524) (276.535) (328.022)
PROFIT/(LOSS) B