4. 4
Introduction
Presentation of Operating and Financial Information
► The financial information contained herein is presented in consolidated figures, pursuant to Brazilian
Corporate Law, based on revised financial information. The consolidated financial information
represents: i) 100% of CEMAR’s results, excluding 34.89% related to minority interests before Net
Income, resulting in participation of 65.11% ii) 100% of CELPA’s results, excluding 3.82% related to
minority interests before Net Income, resulting in participation of 96.18%; and iii) 100% of
Equatorial Soluções’ results, which in turn consolidated 100% of Sol Energias’ results, excluding 49%
of minority interest before Net Income.
► The operating information presented herein consolidates 100% of CEMAR’s results, 100% of CELPA’s
results and 25% of Geramar’s results.
► The following information was not reviewed by the independent auditors: i) non-financial information
relating to CEMAR, Light and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma
information and its comparison with the results presented in the period; and iii) management
expectations regarding the future performance of the Companies.
6. 6
Operating Highlights
► CEMAR’s total billed energy volume reached 1,250 GWh in 2Q13, 4.2% higher than in 2Q12. The total
volume distributed by CELPA (captive and free markets) totaled 1,759 GWh in 2Q13, representing
growth of 6.4% YoY.
► In CEMAR, energy losses of the last 12 months ending 2Q13 represented 21.1% of the required
energy, with a reduction of 0.7 percentage points compared to 20.4% recorded in 2Q12. In CELPA, total
losses ended the year at 36.4% of the required energy.
► In 2Q13, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 20.1 hours, a
decrease of 7.7%, and 10.9 times, a decrease of 5.6%, compared to those observed at the end of 2Q12.
In CELPA, these same indexes closed the quarter with improvements of 17.8% and 13.3%, respectively.
Analyzing CELPA’s indexes only in the quarter, we can see improvements of 28.1% and 17.3%,
respectively.
7. 7
► Net operating revenues (NOR) in 2Q13 reached R$1,117 million, almost twice 2Q12’s NOR, which reflects
the beginning of the consolidation of CELPA.
► In 2Q13, EBITDA totaled R$64 million, a 46.0% decrease compared to the 2Q12 amount, due to the effect of
the dispatch of thermal plants and the beginning of consolidation of Celpa. If we consider the constitution or
amortization of net regulatory assets, Equatorial’s Adjusted EBITDA would have been R$153 million, 73.9%
higher than 2QT12’s.
► The net result of the quarter was a loss of R$44 million, due to the effect of the dispatch of thermal plants
and the beginning of consolidation of Celpa. Considering the constitution or amortization of net regulatory
assets, Equatorial’s adjusted net income would have been R$31 million, 25.7% higher than 2Q12’s.
► In 2Q13, Equatorial's consolidated investments totaled R$156 million, 12.7% higher than those made in
2Q12.
► As of last quarter, we no longer consolidate the interest of 25% in Geramar. On a pro-forma basis, we also do
not consolidate its numbers in previous quarters in this Earnings Release. Geramar’s results only impact
Equatorial’s Consolidated Income Statement in the Equity Income line.
► In August 2013, Equatorial injected R$50 million in Future Capital Increase in Celpa.
► In August, ANEEL approved CELPA’s tariff adjustment, in which the average effect on the consumers will be
9.18%.
Financial Highlights
11. 11
DEC (hours) FEC (times)
Distribution – DEC and FEC - CEMAR
► CEMAR: In 2Q13, the DEC index decreased 7.7% compared to 2Q12 while the FEC index decreased 5.6% compared to the same quarter last
year.
20.1
21.8
2Q12 2Q13
-7.7% 11.5
10.9
2Q12 2Q13
-5.6%
12. 12
► CELPA: Energy demand growth of 6.4% in energy sales in 2Q13 (Captive Market + Free), reaching 1,759 GWh.
.
Energy Market - CELPA
Electricity Consumption per Segment (GWh)
Energy Balance (GWh)
CONSUMPTION SEGMENTS * (MWh) 2Q12 1Q13 2Q13 Chg. 1S12 1S13 Chg.
Residential 624,415 629,910 669,518 7.2% 1,221,803 1,299,428 6.4%
Industrial 304,910 286,923 302,887 -0.7% 630,158 589,809 -6.4%
Commercial 366,918 371,956 402,887 9.8% 710,886 774,844 9.0%
Others 287,853 277,267 300,736 4.5% 557,714 578,003 3.6%
TOTAL 1,584,095 1,566,057 1,676,027 5.8% 3,120,561 3,242,084 3.9%
Free Consumers 69,653 83,857 83,002 19.2% 121,566 166,859 37.3%
TOTAL (Captive + Free) 1,653,748 1,649,913 1,759,030 6.4% 3,242,128 3,408,943 5.1%
* Does not include own consumption.
ENERGY BALANCE (MWh) 2Q12 1Q13 2Q13 Chg. 1S12 1S13 Chg.
Energy Sales (Captive + Own Consumption) 1,591,187 1,572,212 1,682,452 5.7% 3,135,698 3,254,664 3.8%
Total Losses 860,770 956,065 1,006,117 16.9% 1,648,682 1,962,182 19.0%
Required Energy 2,451,949 2,528,196 2,688,525 9.6% 4,784,386 5,216,721 9.0%
Own Generation 96,741 102,633 110,366 14.1% 186,799 212,999 14.0%
Energy Purchase (Contracts) 2,407,254 2,231,622 2,375,732 -1.3% 4,707,390 4,607,355 -2.1%
Energy Purchase (Spot) 60,005 247,460 263,496 339.1% 121,209 510,955 321.5%
Basic Network Losses (112,050) (53,519) (61,069) -45.5% (231,011) (114,588) -50.4%
(*) Includes sales to the segments, own consumption and free market.
14. 14
DEC (hours) FEC (times)
Distribution – DEC and FEC
► CELPA: In 2Q13, the DEC index improved 17.8% compared to 2Q12 while the FEC index decreased 13.3% compared to the same quarter last
year. Analyzing CELPA’s indexes only in the quarter, we can see improvements of 28.1% and 17.3%, respectively.
CELPA – Last 12 months
CELPA – Quarterly
105.1
86.5
2Q12 2Q13
-17.8%
52.5
45.5
2Q12 2Q13
-13.3%
28.0
20.1
2Q12 2Q13
-28.1%
13.2
10.9
2Q12 2Q13
-17.3%
17. 17
Quarterly Results
Net Income
This quarter’s result was a loss of R$44 million.
However, if we adjust the results for the quarter by the formation of net regulatory assets, would have
made a profit of R$31 million, 25.7% better than the adjusted profit for 2Q12.
(20)
75
44
24 24 31
(44)
Net Income
IFRS 2Q12
Net Reg.
Assets
Adj. Net
Income 2Q12
Adj. Net
Income 2Q13
Net Reg.
Assets
Net Income
IFRS 2Q13
25.7%
19. 19
100% CEMAR + 100% CELPA
Net Debt - Consolidated
Net Debt (R$MM) and Net Debt/ EBITDA
(Last 12 months)
Net Debt Reconciliation (R$MM)
We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to the
change in the accounting consolidation rule.
Despite the consolidation of 100% of CELPA’s gross debt, its EBITDA contribution to Equatorial’s
consolidated figure represents values as from November 2012.
1,001
989 932
1,430
969
1,403
2.31.9 2.0 1.8
2.6
2.9
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
3,076
1,001
1,520
556
Gross Debt Net
Regulatory
Asset
Cash Net Debt
20. 20
65.11% CEMAR + 96.18% CELPA
Net Debt – Pro-rata
Net Debt (R$MM) and Net Debt/ EBITDA
(Last 12 months)
Net Debt Reconciliation (R$MM)
We adjusted Equatorial’s net debt of previous quarters excluding the 25% stake in Geramar due to the
change in the accounting consolidation rule.
638 601
1,001
628
984
629
2.41.9 2.0 1.8
2.7 3.1
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
2,472
629
499
1,343
Gross Debt Net
Regulatory
Asset
Cash Net Debt
21. 21
► CEMAR: In 2Q13, total capex reached R$61 million, of which R$54 million are own capex and R$7 million regarding the Light for
All Program (PLPT).
► CELPA: In 2Q13, total capex reached R$95 million, of which R$90 million are own capex and R$5 million regarding the Light for
All Program (PLPT).
Capex - Equatorial
INVESTMENTS (R$MM) 2Q12 1Q13 2Q13 Chg. 1S12 1S13 Chg.
Celpa
Own (*) 101 78 54 -46.4% 175 132 -24.7%
Light For All Program 37 5 7 -81.5% 82 12 -84.9%
Total 138 83 61 -55.8% 256 144 -43.8%
Celpa
Own (*) 83 90 N/A 174 N/A
Light For All Program 3 4 N/A 7 N/A
Total 86 95 N/A 180 N/A
Geramar
Generation 0 0 0 201.1% 0 0 -37.9%
TOTAL 138 169 156 12.7% 257 144 -43.8%
(*) Including indirect Light For All Program investments
22. 22
CELPA
In August 2013, ANEEL approved CELPA’s Tariff Adjustment, which is valid since August 07, 2013.
Adjustment Index (economic): 7.35%
Average Effect on Consumers: 9.18%
Through the CDE pass-through, CELPA should receive:
CEMAR
The final figures of CEMAR’s Tariff Review should only be known by the end of this month. However, in July
16, 2013, ANEEL declared the amount of the Gross Regulatory Asset Base to be R$3,308 million and the
Net Regulatory Asset Base to be R$2,069 million.
CELPA’s Tariff Adjustment
CVA Energy Purchase 92.531
CVA System Service Charge (ESS) 32.053
Tariff Affordability 20.956
TOTAL 145.540
CDE Pass-through (in R$ thousands)
24. 24
• This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the
expectations of Company’s management and on available information. These prospects include statements concerning the Company’s
current intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir and
in the IPE system of the Brazilian Securities and Exchange Commission (CVM).
• Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share
and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors
and values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completely
rely on the information above.
• The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify
estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements.
• This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And,
this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind.
Disclaimer
