2. 2
Disclaimer
The stand-alone and consolidated financial statements were prepared in accordance with the accounting
principles adopted in Brazil, which include corporation law, the pronouncements, instructions and
interpretations issued by the Accounting Pronouncements Committee (CPC) and the regulations of the
Securities and Exchange Commission of Brazil (CVM), combined with specific legislation issued by the
National Electric Power Agency (ANEEL). As the industry regulator, ANEEL has powers to regulate the
concessions. The results are usually presented in both IFRS and former formats in order to permit
comparisons with other periods. However, the results presented in “Regulatory” format are not audited.
ALUPAR uses the audited results based on the IFRS principles to declare dividends.
The forward-looking statements contained in this document relating to the business outlook, projections of
operational and financial results and the growth prospects of ALUPAR are merely projections, and as such
are based exclusively on management’s expectations for the future of the business. These expectations
depend materially on changes in market conditions and the performance of the Brazilian economy, the
sector and international markets and therefore are subject to change without prior notice.
3. 3
Alupar at a Glance
Alupar is the only listed company in Brazil operating in transmission and generation segments
Geographic Footprint of the Assets
Operational Under construction
Portfolio of 32 long-term
concessions, starting to expire
in 2030 (transmission) and
2034 (generation)
Transmission
Generation
Alupar Concession – Transmission and Generation
Today
LifetimeTranschile
Operating Under Construction
Lifetime
Lifetime
4. 4
V 50.01%
T 42,51%
100%
50.01%V 50.02%
T 50.02%
V 100%
T 50.01%
70.02%
V 50.01%
T 42.51%
99.70%
41.00%
41.00%
41.00%
Transminas
47.51%
51.00%
V 50.02%
T 50.02%
51.00%
80.00%15.00% 80.00% 20.00%
Transirapé
Transleste
STC
EBTE
Transudeste
Lumitrans
ETES
50.01%
V 100%
T 50.01%
STN ENTEEATE
ECTE
ERTE
ETEP
ETEM
62.06%
ETVG
ESDE
100%
TNE
51.00%
99.89%
100%
ETSE
100%
46.00%
TME
51.00%
51.00%
Transchile
Company’s Assets
TBE
TBE
TBE
TBE
TBE TBE TBE
TBE TBE
TBE
Note:
(1) TBE’s 10 transmission assets: EATE, EBTE, ECTE, ENTE, ERTE, ESDE, ETEP; ETSE, LUMITRANS e STC.
10.00%
10.00%
10.00% 82.00%
Generation Under Development TBE1
TBE group’s assetsTransmission
Lavrinhas
Rio Claro
Ijuí
Queluz
Ferreira
Gomes
Risaralda
Energia
dos Ventos
Verde 08
La Virgen
Água Limpa
65.00%
90.00%
5. 5
Alupar’s Business Culture
Financial Discipline
Responsible and Sustainable Growth
Efficient Capital Structure
Corporate Governance and Transparency
Skilled and Motivated Team
6. 6
Notice to the Market, December 06th, 2013
Market Maker Contract
ALUPAR INVESTIMENTO S.A., a publicly-held company registered with the CVM under no. 21490, with
headquarters at Avenida Doutor Cardoso de Melo, 1.855, Bloco I, 9th floor, room A, in the city and state of
São Paulo, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no. 08.364.948/0001-38
(“Alupar”), hereby informs its shareholders and the market in general, pursuant to CVM Instruction 384 of
March 17, 2003 (“ICVM 384”), that it has contracted BTG Pactual Corretora de Títulos e Valores
Mobiliários S.A. (“BTG Pactual”), with headquarters at Avenida Brigadeiro Faria Lima, nº 3.729, 10th floor,
part, in the city and state of São Paulo, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no.
43.815.158/0001-22, to act as the market maker for its units, traded under the ticker ALUP11 on the
Securities, Commodities and Futures Exchange – BM&FBOVESPA S.A. for a period of twelve (12)
months, automatically renewable for equal terms if there is no opposition from either party, in order to
“make a market” for and increase the liquidity of the units. BTG Pactual will begin its activities as market
maker for the units on December 7, 2013. Alupar has rescinded its unit market maker contract with
Itaúvest DTVM S.A. (“Itauvest”), with headquarters at Praca Alfredo Egydio Souza Aranha, 100 - T.
Conceição, 7th floor, City Code 04344-902, in the city and state of São Paulo, inscribed in the corporate
roll of taxpayers (CNPJ/MF) under no. 92.880.749/0001-99, which will remain in effect until December 6,
2013.
7. 7
Material Fact, December 11th, 2013
La Virgen Acquisition
Location: Chanchamayo Province, Peru
Installed Capacity: 64.0 MW
Assured Energy: 40.4 MW
Startup: 2016
Alupar’s Stake: 65%
8. 8
Material Fact, December 13th, 2013
Alupar negocia 6,0 MW médios da PCH Água Limpa a R$ 138,00/MWh
Location: Piracicaba river, municipality of Antônio Dias (MG)
Installed Capacity: 23.0 MW
Assured Energy: 11.9 MW
Startup: 2018 (ANEEL)
Alupar’s Stake: 90%
Auction 10/2013-ANEEL
9. 9
TNE – Suspension of the injunction that paralysis the construction of the transmission line
Notice to the Market, December 18th, 2013
ALUPAR INVESTIMENTO S.A., a publicly-held company registered with the CVM
under number 2149-0, with headquarters at Avenida Doutor Cardoso de Melo,
1.855, Bloco I, 9th floor, room A, in the city and state of São Paulo, inscribed in the
corporate roll of taxpayers (CNPJ/MF) under number 08.364.948/0001-38
(“Alupar” or “Company”), given the news published today concerning its subsidiary
Transnorte Energia S.A. (“TNE”), responsible for the installation of a 715 km
transmission line and three substations, connecting the cities of Manaus (AM) and
Boa Vista (RR), hereby informs its shareholders and the market in general that:
• TNE was notified on December 12, 2013 of an injunction granted by the
Regional Federal Court of Amazonas suspending the procedures related to
the environmental licensing of said transmission line;
• On December 17, 2013, when adjudicating the petition to suspend the
injunction filed by the Federal Government and ANEEL, the First Region
Federal Appellate Court lifted said injunction, allowing the immediate
recommencement of the works.
The Company is certain that TNE has complied with all its legal obligations and
procedures regarding the environmental licensing process with all the bodies
involved.
The Company is closely motoring the matter and will keep its shareholders and the
market informed of any further developments.
10. 10
Electricity´s Price
-
- Increase in thermal generation
Delays in construction of greenfield projects
Recent adoption of risk aversion procedures in the electricity spot price (PLD) formation
May pressure up electricity prices in the near future
Source: ONS/CCEESource: ONS
Brasil - SIN
18. 18
Generation Financial Highlights - Combined
92.2
112.7
126.313.6
2012 2013 Adjusted
GSF
Adjusted
2013
EBITDA (R$ MM) and Margin (%)
62.2%
69.7%
38.9
49.4
4Q12 4Q13
Net Revenue (R$ MM)
160.7
181.3
2012 2013
Net Revenue (R$ MM)
24.9
37.6
64.0% 76.0%
4Q12 4Q13
EBITDA (R$ MM) and Margin (%)
2.5
29.0
41.012.0
2012 2013 Adjusted
GSF
Adjusted
2013
Net Income (R$ MM)
57.4%
2.2
15.4
4Q12 4Q13
Net Income (R$ MM)
19. 19
Indebtedness - Consolidated
34,0%
35,3%
15,2%
0,2%
15,3%
CDI
TJLP
Fixed
Foreign Currency
IPCA
Gross Debt by Index (%)
1.361,2
293,9
153,35,7
1.469,0
BNDES (TJLP / IGP-M)
Other Development Banks
Other Local Currency
Foreign Currency
Debentures
Gross Debt Composition (R$ MM)
22%
78%
Debt Profile (%)
Short Term Long Term
3,283.1
877.2
2,405.9
Gross Debt Cash and Cash Equivalents Net Debt
Total Debt Dec/13(R$ MM)
20. 20
Indebtedness - Controlling
44.8%
6.1%
49.1%
CDI
Fixed
IPCA
Gross Debt by Index (%)Gross Debt Composition (R$ MM)
19%
81%
Debt Profile (%)
Short Term Long Term
682.9
[VALOR]38.3
644.6
Gross Debt Cash and Cash
Equivalents
Net Debt
Total Debt Dec/13
641.4
0.2
41.3
Debentures
Other
Finep
22. 22
Dividends
In accordance with the Company’s Bylaws, shareholders are entitled to receive minimum non-cumulative dividends
equivalent to 50% of net income for each fiscal year, plus or minus legally-constituted reserves.
On February 27, 2014, the Board of Directors decided, the distribution of intermediates dividends in the amount of R$
156,225,450.00 regarding to the Profit Reserves recorded in the balance of December, 31, 2012 and recommended the
distribution of R$ 193,719,558.00 income for the year of 2013, which should be decided at the Annual General Meeting to be
held on April 16, 2014. Thus total shareholder payments will reach R$350.0 million, equivalent to R$1.68 per share.