Earnings release 1 q11 presentation

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Earnings release 1 q11 presentation

  1. 1. OPERATING ANDFINANCIAL RESULTS 1Q11
  2. 2. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 2
  3. 3. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 3
  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, ii) 25% of Geramar’s results and iii) 100% of Equatorial Soluções Results. ► The operating information presented herein consolidates 100% of CEMAR’s results and 25% of Geramar’s results. ► In order to facilitate comparisons, the operating and financial information of 1Q10 are pro forma, so that the interest held by Equatorial in RME is not being considered. ► The following information was not reviewed by the independent auditors: i) non-financial information relating to CEMAR and the PLPT (Programa Luz para Todos - Light for All Program); ii) pro forma information and its comparison with the results presented in the period; and iii) management expectations regarding the future performance of the Companies. 4
  5. 5. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 5
  6. 6. Operating Highlights ► CEMAR’s billed energy volume totaled 998 GWh in 1Q11, 3.9% more than in 1Q10. ► CEMAR’s last-12-month energy losses totaled 21.6% of required energy in 1Q11, 2.6 p.p. less than the 1Q10 ratio. ► CEMAR’s last-12-month DEC and FEC indices came to 21.5 hours and 12.9 times, respectively, in 1Q11, 1.7% and 10.9% down on the 1Q10 figures. 6
  7. 7. Financial Highlights ► Net operating revenues (NOR) totaled R$413.1 million in 1Q11, 10.4% up on 1Q10, reflecting a 9.8% increase in CEMAR. ► 1Q11 EBITDA came to R$112.3 million, 2.0% lower than the amount reported in 1Q10. ► Net income totaled R$34.2 million in the quarter, 10.2% down on the adjusted amount reported in the same period last year. ► Equatorial’s consolidated investments amounted to R$80.4 million in 1Q11, 3.6% up year-on-year. In CEMAR (excluding direct investments in the Light For All Program), total capex amounted to R$42.6 million, 11.3% up y/y. Light For All Program investments totaled R$37.7 million. 7
  8. 8. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 8
  9. 9. CEMAR – Electricity Sales Volume► CEMAR: 1Q11 energy sales moved up by 3.9%, reaching 998 GWh. Electricity Consumption per Segment (GWh) CONSUMPTION SEGMENTS (GWh) 1Q10 4Q10 1Q11 Chg. Residential 449.4 507.0 467.7 4.1% Industrial 97.3 111.3 102.1 4.9% Commercial 190.4 215.5 198.1 4.1% Other 222.8 259.8 229.7 3.1% TOTAL 959.9 1,093.6 997.6 3.9% Energy Balance (GWh) ENERGY BALANCE (GWh) 1Q10 4Q10 1Q11 Chg. Required Energy 1,240 1,421 1,259 1.4% Sold Energy (*) 960 1,095 999 4.1% Losses 280 326 260 -7.7% (*) Considers sale to the segments, own consumption and sales to CEPISA 9
  10. 10. Distribution – Energy Losses in CEMAR Total Losses over Required Energy (last 12 months) 28.7% 28.9% 28.6% 28.9% 28.5% 28.1% 28.1% 26.4% 24.3% 24.2% 25.2% 22.2% 22.2% 22.0% 21.6% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Regulatory Target Total Losses (from Aug-10 until Jul-11) Non-technical Losses over Low-Voltage Market (last 12 months) 30.4% 30.6% 29.9% 30.0% 29.0% 28.7% 27.3% 21.5% 21.5% 23.7% 19.5% 15.7% 15.7% 15.0% 15.9% 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Regulatory Target Non-technical Losses (from Aug-10 until Jul-11) 10
  11. 11. Distribution – DEC and FEC (Last 12 months) ► CEMAR: The DEC index improved 1.7% compared with 1Q10 and the FEC index improved 10.8% in the same period. DEC (hours) FEC (times) -1.7% 21.9 -10.8% 21.5 14.4 12.9 1Q10 1Q11 1Q10 1Q11 11
  12. 12. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 12
  13. 13. Consolidated Performance EBITDA* Net Operating Revenues* 413.1 2.3% 374.1 10 . 4 % 0.1% 114.6 - 2.0% 112.3 3.2% 6.1% 2.0% 97.6% 96.8% 93.9% 97.9% 1Q10 1Q11 1Q10 1Q11 CEM A R EQTL So luçõ es Geramar CEM AR Geramar Net Income* 1.4% 52.5 - 34.9% 34.2 8.2% 98.6% 91.8% 1Q10 1Q11 CEM A R Geramar 13*Only operating companies are considered in these graphs.
  14. 14. Consolidated Performance Adjusted Net Income 14.4 -10.2% 52.5 38.1 34.2 1Q10 Equity Income 1Q10 1Q11 Net Income RME Adj. Net Income Net Income► RME Equity Income: We excluded R$14.4 million in Equity Pick-up related to Equatorial’s investment in RME since this investment was spun-off in 2Q10. 14
  15. 15. Debt: Schedule of Gross Debt Maturities Consolidated Gross Debt (100% CEMAR + 25% Geramar) 106.0 65.9 Geramar 201.4 - 129.5 - 346.4 1,202.5 - 119.4 CEMAR - 113.4 40.0 292.3 Gross Debt Short Term 2012 2013 2014 2015 After 2015 15
  16. 16. Net Debt - Consolidated 100% CEMAR + 25% Geramar Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM) (Last 12 months) 1.7 1.7 43.9 1.4 1.5 1.5 775.7 511.9 754.3 733.4 758.7 752.8 1,308.5 752.8 1Q10 2Q10 3Q10 4Q10 1Q11 Gross Debt Net Reg. Cash Net Debt Assets 16
  17. 17. Net Debt – Pro-Rata 65.11% CEMAR + 25% Geramar Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM) (Last 12 months) 1.7 1.7 1.5 1.5 28.6 1.4 512.7 365.9 494.7 483.3 499.1 494.4 888.9 494.4 1Q10 2Q10 3Q10 4Q10 1Q11 Gross Debt Net Reg. Cash Net Debt Assets 17
  18. 18. Capex - Equatorial► CEMAR: In the 1Q11, total capex reached R$80.4 million, of which R$42.6 million are own capex and R$37.7 million are related to the Light for All Program (PLPT).► Ever since the conclusion of the construction of its plants, Geramar has only maintenance capex. INVESTMENTS (R$MM) 1Q10 4Q10 1Q11 Chg. CEMAR Own (*) 38.3 67.3 42.6 11.3% Light For All Program 33.1 58.3 37.7 13.9% Total 71.4 125.6 80.3 12.5% Geramar Generation 6.3 0.4 0.2 -97.2% TOTAL 77.6 126.0 80.4 3.6% (*) Including indirect Light For All Program investments 18
  19. 19. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 19
  20. 20. Redentor► On May 12, 2011, Redentor’s controlling shares were transfered from FIP PCP to Parati S.A., company controlled by CEMIG and FIP Redentor.► During this week, R$1.42 per share should be paid to shareholders, corresponding to the dividends and capital reduction recently announced. PCP Latin America Parati S.A. Free Float Free Float Power 54.1% 45.9% 53.9% 46.1% Redentor Equatorial Energia S.A. Energia 100% RME 65.1% 25% 100% Rio Minas Energia Equatorial CEMAR Geramar Soluções 13.0% Light S.A. 20
  21. 21. Agenda ► Introduction ► Highlights ► Operating Results ► Financial Results ► Redentor ► Comparison IFRS x BR Gaap 21
  22. 22. Comparison IFRS x BR Gaap Balance Sheet – Equatorial – 4Q09 4Q09 4Q09 4Q09 4Q09 Original IFRS LIABILITIES AND SHAREHOLDERS EQUITY (R$ MM) Original Adjust. IFRSASSETS (R$ MM) Adjust. CURRENT 851.8 (258.3) 593.5CURRENT 1,396.5 (530.3) 866.2 Suppliers 256.6 (73.5) 183.1Cash and Cash Equivalents 548.8 (108.3) 440.5 Salaries 1.2 5.3 6.5Consumers and Resellers 506.0 (177.5) 328.5 Dividends / Interest on Equity 70.5 (9.7) 60.8Inventory 7.4 (1.9) 5.5 Taxes and Social Contribution 71.0 (37.6) 33.4Taxes Recoverable 103.9 (57.7) 46.2 Income Tax - 0.4 0.4Low Income 25.1 (2.0) 23.1 Loans and Financing 249.5 (25.7) 223.8Regulatory Assets 118.6 (118.6) - Debentures 20.4 (12.6) 7.8Other Accounts Receivable 86.7 (64.4) 22.3 Public Lighting 22.4 (6.7) 15.7NON CURRENT 2,759.4 (1,002.0) 1,757.4 Provision for Contingencies 3.3 0.0 3.3LONG TERM ASSETS 584.3 (197.7) 386.6 Regulatory Liabilities 22.0 (22.0) - Efficiency - 17.1 17.1Consumers and Resellers 107.0 (38.8) 68.2 Others 134.9 (93.4) 41.6Taxes Recoverable 124.5 (67.7) 56.8 LONG TERM LIABILITIES 1,868.1 (637.6) 1,230.5Regulatory Assets - - - Taxes and Social Contribution 268.9 (132.8) 136.1Deferred Taxes - Income Tax / Social Contribution 320.6 (101.4) 219.2 Debentures 419.2 (151.9) 267.3Financial Concession Asset - 33.4 33.4 Loans and Financing 932.7 (131.1) 801.6Other Accounts Receivable 32.1 (23.1) 9.0 Provision for Contingencies 81.7 (76.8) 4.8DESCONTINUED OPERATIONS - 459.4 459.4 Negative Goodwill - - -FIXED ASSETS 2,175.2 (804.4) 1,370.8 Others 165.7 (145.0) 20.7Investments 3.8 (3.5) 0.2 MINORITY INTERESTS 254.5 (251.4) 3.1Fixed Assets 2,769.8 (1,809.3) 960.4 SHAREHOLDERS EQUITY 1,181.5 74.3 1,255.8(-) Special Obligations (852.9) 23.8 (829.1) Capital Stock 907.5 0.0 907.5Deferred 3.5 (3.5) - Profit Reserves 274.1 1.2 275.2Goodwill 251.1 988.1 1,239.3 Retained Earnings/Accumulated Deficit - 73.1 73.1 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 4,155.9 (1,073.0) 3,083.0TOTAL ASSETS 4,155.9 (1,073.0) 3,083.0 22
  23. 23. Comparison IFRS x BR Gaap Balance Sheet – Equatorial – 1Q10 1Q10 1Q10 1Q10 1Q10ASSETS (R$ MM) Original Adjust. IFRS LIABILITIES AND SHAREHOLDERS EQUITY (R$ MM) Original Adjust. IFRSCURRENT 1,463.7 (492.7) 971.0 CURRENT 837.1 (247.9) 589.1Cash and Cash Equivalents 643.1 (119.7) 523.4 Suppliers 187.7 (71.7) 116.1Consumers and Resellers 526.1 (184.2) 341.8 Salaries 1.3 9.8 11.2 Dividends / Interest on Equity 70.5 (8.5) 62.0Inventory 9.2 (3.1) 6.1 Taxes and Social Contribution 68.0 (33.3) 34.7Taxes Recoverable 121.8 (71.7) 50.1 Income Tax - 7.3 7.3Low Income 22.5 0.0 22.5 Loans and Financing 266.0 (27.3) 238.6Regulatory Assets 52.3 (52.3) - Debentures 67.8 (12.3) 55.5Other Accounts Receivable 88.7 (61.6) 27.1 Public Lighting 15.5 0.0 15.5NON CURRENT 2,824.6 (1,105.4) 1,719.2 Provision for Contingencies 2.5 (0.0) 2.5LONG TERM ASSETS 599.2 (216.6) 382.6 Regulatory Liabilities 31.0 (31.0) -Consumers and Resellers 106.1 (36.8) 69.3 Efficiency - 22.0 22.0Taxes Recoverable 233.4 (181.8) 51.6 Others 126.7 (102.9) 23.8Regulatory Assets - - - LONG TERM LIABILITIES 1,934.0 (719.8) 1,214.2Deferred Taxes - Income Tax / Social Contribution 217.1 0.9 218.0 Taxes and Social Contribution 265.9 (120.6) 145.3 Debentures 363.6 (107.0) 256.6Financial Concession Asset - 34.7 34.7 Loans and Financing 958.2 (171.2) 787.0Other Accounts Receivable 42.6 (33.7) 8.9 Provision for Contingencies 92.8 (88.1) 4.8DESCONTINUED OPERATIONS - 373.6 373.6 Negative Goodwill 75.0 (75.0) -FIXED ASSETS 2,225.4 (888.8) 1,336.5 Others 178.5 (157.9) 20.6Investments 2.7 (2.5) 0.2 MINORITY INTERESTS 271.7 (242.9) 28.8Fixed Assets 2,799.8 (1,758.9) 1,041.0 SHAREHOLDERS EQUITY 1,245.6 (14.0) 1,231.6(-) Special Obligations (902.7) (0.0) (902.8) Capital Stock 926.0 (0.0) 926.0Deferred 3.3 (3.3) - Profit Reserves 280.3 0.0 280.3Goodwill 322.2 875.9 1,198.1 Retained Earnings/Accumulated Deficit 39.3 (14.0) 25.3TOTAL ASSETS 4,288.3 (1,224.6) 3,063.7 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 4,288.3 (1,224.6) 3,063.7 23
  24. 24. Comparison IFRS x BR Gaap Balance Sheet - Equatorial - 2Q10 2Q10 2Q10 2Q10 2Q10ASSETS (R$ MM) Original Adjust. IFRS LIABILITIES AND SHAREHOLDERS EQUITY (R$ MM) Original Adjust. IFRSCURRENT 1,014.3 (25.4) 988.9 CURRENT 549.0 (6.8) 542.2Cash and Cash Equivalents 490.8 - 490.8 Suppliers 150.2 - 150.2Consumers and Resellers 374.7 - 374.7 Salaries 0.8 - 0.8Inventory 5.6 0.2 5.8 Dividends / Interest on Equity 0.4 - 0.4Taxes Recoverable 58.3 - 58.3 Taxes and Social Contribution 49.3 (10.4) 38.9Low Income 23.4 - 23.4 Income Tax - 17.6 17.6Regulatory Assets 20.0 (20.0) - Loans and Financing 192.1 - 192.1Other Accounts Receivable 41.5 (5.6) 35.9 Debentures 61.8 - 61.8NON CURRENT 2,045.0 (305.2) 1,739.8 Public Lighting 14.6 - 14.6LONG TERM ASSETS 413.2 (36.1) 377.1 Provision for Contingencies 1.6 - 1.6Consumers and Resellers 61.8 - 61.8 Regulatory Liabilities 14.0 (14.0) -Taxes Recoverable 124.4 (74.9) 49.5 Efficiency - 25.7 25.7Regulatory Assets - - - Others 64.2 (25.7) 38.5Deferred Taxes - Income Tax / Social Contribution 217.5 8.4 225.9 LONG TERM LIABILITIES 1,140.9 76.5 1,217.5Financial Concession Asset - 30.5 30.5 Taxes and Social Contribution 139.4 12.0 151.5Other Accounts Receivable 9.4 - 9.4 Debentures 267.3 (9.9) 257.4DESCONTINUED OPERATIONS - - - Loans and Financing 714.1 70.6 784.6FIXED ASSETS 1,631.9 (269.1) 1,362.8 Provision for Contingencies 5.3 (1.8) 3.4Investments 0.2 - 0.2 Negative Goodwill - -Fixed Assets 2,288.2 (1,193.1) 1,095.1 Others 14.9 5.7 20.6(-) Special Obligations (949.2) - (949.2) MINORITY INTERESTS 254.9 (201.7) 53.3Deferred 1.8 (1.8) - SHAREHOLDERS EQUITY 829.5 86.2 915.8Goodwill 290.9 925.8 1,216.7 Capital Stock 577.9 (11.1) 566.8TOTAL ASSETS 3,059.3 (330.6) 2,728.7 Profit Reserves 114.6 165.8 280.4 Retained Earnings/Accumulated Deficit 137.0 (68.4) 68.6 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 2,774.4 (45.7) 2,728.7 24
  25. 25. Comparison IFRS x BR Gaap Balance Sheet – Equatorial – 3Q10 3Q10 3Q10 3Q10 3Q10ASSETS (R$ MM) Original Adjust. IFRS LIABILITIES AND SHAREHOLDERS EQUITY (R$ MM) Original Adjust. IFRSCURRENT 1,073.3 (80.4) 992.8 CURRENT 596.7 (9.4) 587.4Cash and Cash Equivalents 444.7 - 444.7 Suppliers 174.8 - 174.8Consumers and Resellers 400.7 - 400.7 Salaries 0.9 - 0.9Inventory 5.5 0.2 5.8 Dividends / Interest on Equity 0.4 - 0.4Taxes Recoverable 70.3 - 70.3 Taxes and Social Contribution 66.2 (23.9) 42.3Low Income 24.9 - 24.9 Income Tax 27.4 27.4Regulatory Assets 75.0 (75.0) - Loans and Financing 188.7 - 188.7Other Accounts Receivable 52.2 (5.7) 46.5 Debentures 55.7 - 55.7NON CURRENT 2,143.8 (314.9) 1,829.0 Public Lighting 13.2 - 13.2LONG TERM ASSETS 417.9 (36.4) 381.5 Provision for Contingencies 2.7 - 2.7 Regulatory Liabilities 17.9 (17.9) -Consumers and Resellers 58.6 - 58.6 Efficiency 29.9 29.9Taxes Recoverable 133.1 (81.7) 51.5 Others 76.1 (24.9) 51.3Regulatory Assets - - LONG TERM LIABILITIES 1,301.7 (107.4) 1,194.3Deferred Taxes - Income Tax / Social Contribution 217.5 3.8 221.4 Taxes and Social Contribution 263.5 (109.8) 153.7Financial Concession Asset - 41.4 41.4 Debentures 258.1 - 258.1Other Accounts Receivable 8.7 - 8.7 Loans and Financing 757.6 - 757.6DESCONTINUED OPERATIONS - - Provision for Contingencies 2.0 2.4 4.4FIXED ASSETS 1,725.9 (278.4) 1,447.5 Negative Goodwill - - -Investments 0.2 - 0.2 Others 20.5 - 20.5Fixed Assets 2,375.5 (1,288.0) 1,087.5 MINORITY INTERESTS 337.1 (256.2) 80.9(-) Special Obligations (942.5) - (942.5) SHAREHOLDERS EQUITY 981.6 (22.3) 959.2Deferred 1.7 (1.7) - Capital Stock 566.8 - 566.8Goodwill 291.0 1,011.2 1,302.3 Profit Reserves 280.4 - 280.4TOTAL ASSETS 3,217.1 (395.3) 2,821.8 Retained Earnings/Accumulated Deficit 134.3 (22.3) 112.0 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 3,217.1 (395.3) 2,821.8 25
  26. 26. Comparison IFRS x BR Gaap Income Statement – Equatorial – 1Q09 and 1Q10 INCOME STATEMENT (R$ MM) 1Q09 1Q09 1Q10 1Q10 Original Adjust. IFRS Original Adjust. IFRS GROSS OPERATING REVENUES 669.9 (206.0) 463.8 723.6 (225.9) 497.7 Electricity Sales to Final Consumer 632.2 (269.2) 363.0 679.5 (257.4) 422.1 Electricity Supply 15.9 (11.0) 4.9 14.2 (12.6) 1.6 Construction Revenues - 92.4 92.4 - 69.3 69.3 Other Revenues 21.8 (18.3) 3.5 30.0 (25.2) 4.7 DEDUCTIONS FROM OPERATING REVENUES (219.4) 115.2 (104.2) (240.1) 116.5 (123.6) NET OPERATING REVENUES 450.5 (90.8) 359.6 483.5 (109.4) 374.1 ELECTRICITY COSTS (221.6) 21.2 (200.4) (254.6) 64.9 (189.7) Electricity Purchased for Resale (202.3) 113.6 (88.7) (232.8) 134.2 (98.6) Transmission and Distribution Network Usage Charges (18.9) (0.0) (19.0) (21.1) - (21.1) Construction Costs - (92.4) (92.4) - (69.3) (69.3) Other non-manageable expenses (0.3) - (0.3) (0.7) (0.0) (0.7) OPERATING COSTS/EXPENSES (78.4) 22.7 (55.7) (104.7) 34.9 (69.8) Personnel (18.0) 4.9 (13.1) (26.2) 1.1 (25.1) Material (2.6) 0.6 (2.0) (3.0) 0.9 (2.0) Services (32.2) 7.7 (24.6) (36.3) 4.8 (31.5) Provisions (21.0) 8.5 (12.5) (19.3) 11.3 (8.0) Others (4.6) 1.0 (3.6) (20.0) 16.9 (3.1) EBITDA 150.5 (46.9) 103.5 124.2 (9.5) 114.6 Other Operating Revenue/Expenses (7.6) - (7.6) (2.0) (2.0) (4.1) Depreciation and Amortization (35.6) 10.0 (25.6) (32.0) 8.8 (23.2) SERVICE INCOME 107.2 (36.9) 70.4 90.2 (2.8) 87.4 EQUITY INCOME 0.3 20.9 21.2 0.3 13.2 13.5 Equity Income - 22.0 22.0 - 14.4 14.4 Goodwill Amortization 0.3 (1.2) (0.9) 0.3 (1.2) (0.9) FINANCIAL INCOME 1.5 0.7 2.2 (19.4) 12.4 (7.0) Financial Revenue 39.8 (8.5) 31.3 33.0 (6.2) 26.8 Financial Expenses (38.3) 9.3 (29.1) (52.4) 18.6 (33.8) RESULT BEFORE INCOME TAX 109.0 (15.2) 93.7 71.1 22.9 93.9 Social Contribution (6.0) 1.1 (4.8) (13.3) 6.4 (6.9) Income Tax (17.5) 3.2 (14.3) (10.9) - (10.9) Deferred Taxes (11.3) 5.8 (5.4) 4.8 (14.9) (10.1) SUDENE Incentive 13.7 (0.0) 13.7 10.6 - 10.6 PROFIT SHARING (4.1) 4.1 - (3.4) 3.4 - MINORITY INTERESTS (20.8) 0.0 (20.8) (17.1) (7.1) (24.1) NET INCOME 63.0 (1.0) 62.1 41.7 10.8 52.5 26
  27. 27. Comparison IFRS x BR Gaap Income Statement – Equatorial – 2Q09 and 2Q10 INCOME STATEMENT (R$ MM) 2Q09 2Q09 2Q10 2Q10 Original Adjust. IFRS Original Adjust. IFRS GROSS OPERATING REVENUES 880.4 (393.4) 487.0 447.7 119.1 566.8 Electricity Sales to Final Consumer 814.6 (447.7) 366.9 433.3 28.1 461.4 Electricity Supply 26.7 (23.7) 3.0 1.8 - 1.8 Construction Revenues - 112.6 112.6 - 90.9 90.9 Other Revenues 39.1 (34.5) 4.6 12.6 - 12.6 DEDUCTIONS FROM OPERATING REVENUES (299.5) 198.0 (101.5) (131.9) (1.0) (132.9) NET OPERATING REVENUES 580.9 (195.3) 385.6 315.8 118.0 433.8 ELECTRICITY COSTS (318.1) 90.3 (227.8) (132.8) (90.6) (219.2) Electricity Purchased for Resale (295.6) 202.9 (92.7) (111.2) - (106.7) Transmission and Distribution Network Usage Charges (22.5) (0.0) (22.5) (20.9) - (21.2) Construction Costs - (112.6) (112.6) - (90.6) (90.6) Other non-manageable expenses - - - (0.7) - (0.7) OPERATING COSTS/EXPENSES (114.5) 58.7 (55.8) (69.6) (3.3) (73.0) Personnel (15.6) 1.0 (14.6) (15.3) (3.3) (18.7) Material (3.0) 1.1 (1.9) (2.0) - (2.0) Services (24.5) (1.3) (25.8) (34.6) - (34.6) Provisions (32.7) 24.6 (8.1) (15.2) - (15.2) Others (38.7) 33.4 (5.3) (2.5) - (2.5) EBITDA 148.3 (46.3) 102.0 113.4 24.1 141.6 Other Operating Revenue/Expenses (3.6) - (3.6) (0.7) - (0.7) Depreciation and Amortization (45.8) 19.1 (26.7) (23.3) 0.1 (23.2) SERVICE INCOME 98.9 (27.2) 71.7 89.4 24.1 117.7 EQUITY INCOME 2.0 17.4 19.4 (2.3) - (2.3) Equity Income - 18.5 18.5 - - - Goodwill Amortization 2.0 (1.1) 0.9 (2.3) - (2.3) FINANCIAL INCOME 1.1 0.5 1.6 (17.6) (0.3) (17.8) Financial Revenue 42.8 (12.2) 30.6 19.6 (0.3) 19.3 Financial Expenses (41.7) 12.7 (29.0) (37.3) - (37.1) RESULT BEFORE INCOME TAX 102.0 (9.3) 92.7 69.5 23.8 97.6 Social Contribution (29.6) 24.7 (4.9) (10.3) - (10.3) Income Tax (7.5) (6.2) (13.7) (15.3) - (15.3) Deferred Taxes 41.4 (21.1) 20.3 12.5 (10.7) 1.8 SUDENE Incentive 13.1 (0.0) 13.1 14.6 - 14.6 PROFIT SHARING (4.9) 4.9 - (3.3) 3.3 - MINORITY INTERESTS (43.1) 12.4 (30.7) (23.5) (7.2) (30.7) 27 NET INCOME 71.4 5.4 76.8 44.1 9.2 57.7
  28. 28. Comparison IFRS x BR Gaap Income Statement – Equatorial - 3Q09 and 3Q10 INCOME STATEMENT (R$ MM) 3Q09 3Q09 3Q10 3Q10 Original Adjust. IFRS Original Adjust. IFRS GROSS OPERATING REVENUES 908.7 (381.0) 527.7 527.1 85.7 612.8 Electricity Sales to Final Consumer 845.5 (432.1) 413.4 508.2 (40.9) 467.2 Electricity Supply 25.1 (22.8) 2.3 11.4 - 11.4 Construction Revenues - 107.6 107.6 - 126.6 126.6 Other Revenues 38.0 (33.6) 4.5 7.6 - 7.6 DEDUCTIONS FROM OPERATING REVENUES (302.3) 179.8 (122.6) (133.2) 0.5 (132.8) NET OPERATING REVENUES 606.4 (201.2) 405.2 393.9 86.2 480.1 ELECTRICITY COSTS (295.0) 288.3 (6.7) (127.6) (129.8) (257.4) Electricity Purchased for Resale (277.4) 180.7 (96.7) (111.6) - (111.6) Transmission and Distribution Network Usage Charges (17.6) - (17.6) (19.1) - (19.1) Construction Costs - - 107.6 - (126.6) (126.6) Other non-manageable expenses - 3.1 (3.1) - OPERATING COSTS/EXPENSES (106.3) 46.8 (59.6) (80.2) (15.9) (96.2) Personnel (21.2) 5.9 (15.3) (16.1) (8.2) (24.3) Material (3.2) 0.9 (2.3) (1.7) - (1.7) Services (35.1) 7.1 (28.0) (45.8) - (45.8) Provisions (23.9) 19.3 (4.6) (13.7) - (13.7) Others (22.9) 13.5 (9.3) (2.9) (7.7) (10.6) EBITDA 205.0 133.9 338.9 186.0 (59.5) 126.5 Other Operating Revenue/Expenses (0.7) - (0.7) (4.3) - (4.3) Depreciation and Amortization (44.1) 19.2 (24.9) (25.0) 0.1 (24.9) SERVICE INCOME 160.3 153.0 313.3 156.7 (59.4) 97.3 EQUITY INCOME 1.2 7.8 9.0 (1.6) (0.0) (1.6) Equity Income - 9.0 9.0 - - Goodwill Amortization 1.2 (1.2) (1.6) - (1.6) FINANCIAL INCOME (17.0) 11.1 (5.8) (9.5) 0.1 (9.4) Financial Revenue 36.5 (12.0) 24.5 27.1 0.1 27.2 Financial Expenses (53.4) 23.1 (30.3) (36.6) - (36.6) RESULT BEFORE INCOME TAX 144.5 172.0 316.5 145.7 (59.3) 86.4 Social Contribution (26.7) 18.8 (7.9) (10.0) - (10.0) Income Tax (20.7) - (20.7) (15.6) - (15.6) Deferred Taxes (8.9) 5.5 (3.3) (24.2) 17.4 (6.8) SUDENE Incentive 20.5 - 20.5 15.4 - 15.4 PROFIT SHARING (4.1) 4.1 - (8.2) 8.2 - MINORITY INTERESTS (38.7) 10.1 (28.7) (37.8) 11.8 (26.1) NET INCOME 65.9 210.4 276.4 65.3 (21.9) 43.4 28
  29. 29. Contacts Eduardo Haiama CFO and IRO Thomas Newlands Investor Relations Telephone 1: +0 55 (21) 3206-6635 Telephone 2: +0 55 (21) 3217-6607 Email: ir@equatorialenergia.com.br Website: http://www.equatorialenergia.com.br/ir 29
  30. 30. Disclaimer• This presentation may contain forward-looking statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intentions or expectations for our clients; this presentation will also be available at our website www.equatorialenergia.com.br/ir and in the IPE system of the Brazilian Securities and Exchange Commission (CVM).• Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is advised not to completely rely on the information above.• The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify estimates, which refer only to the date on which they were expressed. Hence, the Company has no obligation to update said statements.• This presentation does not constitute any offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not constitute the basis for any contract or commitment of any kind. 30

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