The document provides operating and financial results for 4Q12. It summarizes that CEMAR's energy sales increased 9.2% in 4Q12 while Celpa's captive market grew 0.6%. CEMAR's losses decreased slightly while Celpa's increased substantially. Financially, net revenues more than doubled due to Celpa's consolidation and EBITDA grew 18.1% although net income turned to a loss. It also notes Equatorial completed a capital increase in December 2012 raising over R$1.1 billion and signed a commitment to acquire Grupo Rede Energia with CP.
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 38.63% related to
minority interests before Net Income, resulting in participation of 61.37%; iii) 25% of Geramar’s results
and iv) 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.
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6. Operating Highlights
► CEMAR’s total billed energy volume reached 1,266 GWh in 4Q12, 9.2% higher than in 4Q11. The total
volume distributed by Celpa (captive and free markets) totaled 1,732 GWh in 4Q12, representing growth
of 2.6% YoY.
► CEMAR’s last-12-month energy losses totaled 20.7% of required energy in 4Q12, 0.3 p.p. less than the
4Q11 ratio. Celpa’s last-12-month energy losses represents 30.5% of required energy in 4Q12.
► In 4Q12, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 21.7 hours, an
increase of 1.2%, and 11.0 times, a decrease of 5.4%, compared to those observed at the end of 4Q11.
In Celpa, these same indexes closed the year at 101.6 hours and 50.9 times, respectively.
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7. Financial Highlights
► Celpa’s results are consolidated as from November 1, 2012, the date in which the company’s acquisition was
concluded.
► Net operating revenues (NOR) in 4Q12 reached R$1,220.3 million in, more than twice 4Q11’s NOR, which
reflects the early consolidation of Celpa.
► In 4Q12, EBITDA totaled R$167.6 million, 18.1% increase compared to the adjusted amount for 4Q11.
► The net result for the quarter was a loss of R$8.8 million, due to the beginning of Celpa’s consolidation.
► In 4Q12, Equatorial's consolidated investments totaled R$258.1 million, 24.1% lower than those made in
4Q11. If we consider only CEMAR’s own investments, the growth was 6.3% in the quarter.
► The management's proposal, to be submitted to AEGM, is the distribution of R$33.7 million in dividends,
equivalent to R$0.17 per share
► In December 2012, Equatorial concluded its follow on deal, in which it raised just over R$1.1 billion of net
proceeds through the issuance of new shares priced at R$16.00 each.
► In January 2013, the Company’s Board of Directors approved the new capital increase deal through the
capitalization of R$234.8 million of loans held by BNDESPAR against the Company. Since then, Equatorial’s
capital became represented by 198,447,352 common shares.
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12. Distribution – DEC and FEC (Last 12 months)
► CEMAR: In 4Q12, the DEC index increased 1.2% compared to 4Q11 while the FEC index decreased 5.4% compared to the
same quarter last year.
► Celpa: In 4Q12, the DEC index increased 1.9% compared to 4Q11 while the FEC index decreased 4.1% compared to the
same quarter last year.
DEC (hours) FEC (times)
21.4 1.2% 21.7
11.6
-5.4%
11.0
CEMAR
4Q11 4Q12 4Q11 4Q12
99.7 1.9% 101.6 55.5
-4.1% 50.9
Celpa
4Q11 4Q12 4Q11 4Q12
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14. Quarterly Results
Consolidated EBITDA
18.1% 167.6
141.9
4Q11 4Q12
Consolidated EBITDA grew by 18.1% on the 4Q12 when compared to the 4Q11 figures.
CEMAR’s quarterly EBITDA grew by 10.5%, amounting to R$147.7 million. Celpa’s EBITDA contribution in
the 4Q12 totaled R$20.9 million.
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15. Quarterly Results
Net Income
33.9
-126.1%
(8.8)
4Q11 4Q12
This quarter’s result was a loss of R$8.8 million due to the consolidation of Celpa.
CEMAR’s adjusted net income, excluding the non-recurring results of R$68.9 million and minorities’ stake,
amounted to R$52.7 million in the quarter, a 3.9% growth.
Celpa’s result in november and december, already excluding minorities and which were conolidated under
Equatorial’s result, represented a R$98.3 million loss.
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17. Net Debt - Consolidated
100% CEMAR + 100% Celpa + 25% Geramar
Net Debt (R$MM) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM)
(Last 12 months)
3.1
2.0 1,758.2
2.0 2.0 51,1
1.9
1,082.6 1,108.3 1,631.4
1,002.4 1,051.3
3,627.9
1,758.2
4Q11 1Q12 2Q12 3Q12 4Q12 Gross Debt Net Cash Net Debt
Regulatory
Asset
Despite the consolidation of 100% of Celpa’s gross debt, its EBITDA contribution to Equatorial’s
consolidated figure represents only the results from November and December.
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18. Net Debt – Pro-rata
65.11% CEMAR + 61.37% Celpa + 25% Geramar
Net Debt (R$MM) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM)
(Last 12 months)
2.4
2.1
2.0 2.0 2.0
890.9 33,3
735.0 751.0
681.7 714.4
1,296.1
2,334.3
890.9
4Q11 1Q12 2Q12 3Q12 4Q12 Gross Debt Net Cash Net Debt
Regulatory
Asset
Despite the consolidation of 61.37% of Celpa’s gross debt, its proportional EBITDA contribution to
Equatorial’s consolidated figure represents only the results from November and December.
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19. Capex - Equatorial
► CEMAR: In 4Q12, total capex reached R$195.5 million, of which R$150.2 million are own capex and R$45.4 million regarding the
Light for All Program (PLPT).
► Celpa: In 4Q12, total capex reached R$62.5 million, of which R$57.5 million are own capex and R$5.0 million regarding the Light
for All Program (PLPT).
INVESTMENTS (R$MM) 4Q12 3Q12 4Q12 Chg. 2011 2012 Chg.
CEMAR
Own (*) 141,3 116,2 150,2 6,3% 322,3 441,2 36,9%
Light For All Program 50,1 50,5 45,4 -9,5% 174,6 177,5 1,6%
Total 191,4 166,7 195,5 2,1% 496,9 618,7 24,5%
Celpa
Own (*) 100,5 124,5 57,5 -42,8% 487,1 432,6 -11,2%
Light For All Program 47,9 8,6 5,0 -89,6% 165,3 45,5 -72,5%
Total 148,4 133,1 62,5 -57,9% 652,4 478,1 -26,7%
Geramar
Generation 0,1 0,0 0,1 8,7% 0,1 0,3 335,6%
TOTAL 339,9 299,8 258,1 -24,1% 1.149,4 1.097,1 -4,6%
(*) Including indirect Light Fo r A ll P ro gram investments
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21. Corporate Events
► In December 2012, Equatorial completed its capital increase operation (follow on) in which raised just over
R$1.1 billion of net proceeds through the issuance of new shares priced at R$16.00 each.
► In December 2012, the Company published a Material Fact informing the signing of Investment, Purchase
and Sale of Shares’ Commitment targeting the acquisition of Grupo Rede Energia, together with CPFL
Energia.
► In January 2013, the Company’s Board of Directors approved the new capital increase operation through the
capitalization of R$234.8 million of loans held by BNDESPAR against the Company. Since then, Equatorial’s
capital came to be represented by 198,447,352 shares.
23. 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.
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