4. 4
Equatorial Overview
Holding company with investments in the energy sector, focused on distribution and
generation
Differentiated experience in operating and financial restructuring of companies in the
Brazilian energy sector
Sponsored by PCP Fund, investment vehicle owned by former partners of Banco Pactual
and managed by Vinci Partners.
Current investments:
• Distribution company in the State of
Maranhão
• 2nd largest distribution company in
the Northeast of Brazil, in terms of
concession area*
• 4th largest distribution company in
the Northeast of Brazil, in terms of
billed energy*
• Annual gross revenues of R$3.0
billion in 2012.
• Company responsible for
implementing and operating the
Tocantinópolis and Nova Olinda
thermoelectric plants in the State of
Maranhão
• Fuel: high-viscosity heavy oil.
• Joint installed capacity of 331 MW
• 240 MW of energy sold at the A-3
auction in 2007.
• Start-up: January 2010
*Source: ABRADEE
• Electricity trading company and
developer of new products and
services
• Broker the purchase and sale
of energy without physical delivery
• Custom of solutions to
satisfy consumers’ specific
needs (consumers and
generators)
• Experienced executives and well-
recognized in the trading market
PA MA
CELPA
• Distribution company in the
State of Pará.
• Annual gross revenues of R$3.3
billion in 2012.
5. Aug. 2011
Equatorial
acquires 51% of
Sol Energias,
energy trader
CEMAR’s acquistion
PCP Fund acquires a
controlling stake of
Equatorial
Equatorial’s IPO
Control concentrated
in PCP Fund
Incorporation of a
controlling stake of
Light
Equatorial migrates to
“Novo Mercado”
Acquisition of 25%
of Geramar
FIP PCP sells its
indirect stake in
Light
Equatorial’s
Spin Off
Equatorial’s History
May. 2004 Mar. 2006 Abr. 2008 Out. 2008 Abr. 2010 Ago. 2011Apr. 2006 Dec. 2007 Feb. 2008 Abr. 2008 Oct. 2008 Dec. 2009 Apr. 2010 Aug. 2011 Feb. 2012
Equatorial
acquires 50% of
Vila Velha
Termoelétricas, a
pre-operational
company
Nov. 2012
Equatorial
acquires 63.1% of
CELPA, energy
distributor
company
Dec. 2012
Equatorial’s
Follow On
6. 6
Ownership Structure – Current
• Total no. of shares:
• Share price**:
• Free float:
• ADTV90:
198,447,352
R$ 20.30
77.1% / R$2.836 MM
R$ 16,224 MM
**On 31/03/13
ADTV90 represents the average volume traded in the past 90 days
Equatorial’s stake in CELPA before
determining the final outcome of
CELPA’s capital increase, approved
in April 2013.
7. 7
Corporate Strategy
CEMAR Increased returns through outstanding financial and
operating performance
Consolidation of
distributors in Brazil and
Latin America
Acquistion of full or shared control
Added value through financial and operational restructuring, synergy
gains and loss reduction
Geramar and other
investments in
generation
Brazil’s investment needs in generation over the next few years will create
growth opportunities for Equatorial.
Geramar thermal plants present an above average rate of return
Celpa Increased returns through operational and financial
turnaround strategy
8. Felipe Borges
Officer
• Officer of Equatorial since January 2013.
• Previously worked (2009-2012) at Banco Original Bank as Chief Legal Officer. From 1999 to 2011 worked at law offices such as Ulhôa Canto Advogados,
from 2004 to 2007 at Mattos Filho Advogados and, from 2001 to 2003, at Velloza Advogados performing multiple functions.
• Degree in Law at University of São Paulo (USP) and Master’s degree in Tax Law at PUC-SP since 2007.
Management
Management is composed by professionals with substantial experience in the financial, operational and regulatory areas
Carlos Piani
Chairman of the
Board of Directors
• CEO of Equatorial from March, 2007 until April, 2010. CFO of CEMAR (2004-2006) and CEO of CEMAR (2007-2010). Currently, he is a partner of Vinci
Partners.
• Worked for 6 years at Banco Pactual in the Principal Investments and Corporate Finance divisions
• Degree in Computer Science at PUC-RJ and in Business Administration at IBMEC. CFA chartered by CFA Institute in 2003. Concluded the Owner and
President Management Program of Harvard Business School in 2008
Firmino Sampaio
CEO
• CEO of Eletrobrás (1996-2001), CEO and CFO of COELBA (1984-1996)
• Former member of the boards of directors of Furnas, Itaipu Binacional, CHESF, Eletrosul, Gerasul, CEMIG, ENERSUL, CEMAT and Light
• Degree in Economics at the Federal University of Bahia and postgraduate degree in Industrial Planning at SUDENE/IPEA/FGV
Eduardo Haiama
CFO & IRO
Tinn Amado
Regulatory Affairs
Officer
• CFO and IRO of Equatorial since 2008. IRO of CEMAR since 2008.
• Between 2004 and 2008, Mr. Haiama worked at Banco UBS Pactual on the equities’ research team as senior analyst of the utilities segment.
• Degree in Electric Engineering at USP – University of São Paulo (Escola Politécnica) and MBA at Duke University. CFA chartered by CFA Institute in
2004
• Regulatory Affairs Officer of Equatorial since April 2008 and of CEMAR since August 2006
• Consulting partner of Amado Consultoria, providing advisory services in economic regulation, also worked at ANEEL for 3 years as an analyst for the
Distribution Service Regulation Department
• Degree in Electrical Engineering at the Federal University of Itajubá (UNIFEI) and a Master’s degree in Regulation and Protection of Fair Trading at
Brasília University (UnB)
Ana Marta Horta Veloso
Officer
• Officer of Equatorial since November 2008.
• Worked as an executive at Banco UBS Pactual S.A., from 2006 untill 2008 . Before joining Pactual, she worked for 12 years at the Brazilian Development
Bank (BNDES), where she held several executive positions, mostly in the capital market area.
• Degree in Economics at the Federal University of Minas Gerais (UFMG) and Master’s degree in Industrial Economics at the Federal University of Rio de
Janeiro (UFRJ).
9. 9
Vinci Partners
PRIVATE EQUITY PUBLIC EQUITIES MULTIMARKET
• In 2001, Banco Pactual created a Principal
Investment Unit to manage the partnership’s excess
capital and diversify its investments;
• In 2006, with the sale of Banco Pactual to UBS, part
of the proceeds from the sale was reinvested in the
Principal Investment Unit, which was renamed PCP;
• In 2009, with the sale of Pactual to BTG, Vinci
Partners was created, an independent asset
management, composed by Pactual’s ex-partners;
• Today, Vinci has almost US$ 3.0 billion under
management (75% own capital), investing in Private
Equity, Public Equities and Multimarket Funds.
History
PCP Fund
LONG TERM MEDIUM TERM SHORT TERM
13. 13
Consolidated Net Debt and Net
Debt/EBITDA (*)
R$ million / Times
Improved operating performance and financial restructuring led to a
significant reduction in leverage,
Financial Performance
(*) Consolidated (65.1% CEMAR, 61.4% Celpa). Light is no longer consolidated as from 2010.
It is important to mention that there was no consolidation of Geramar’s debt in this quarter.
14. 14
Financial Performance
made a longer debt amortization schedule possible…
Debt Amortization Schedule - R$ MM
Equatorial’ s Cash Position in 1Q13: R$ 1,435.8 million
Short Term 2014 2015 2016 2017 After 2017 Total
CEMAR 213 116 183 173 154 542 1,380
Celpa 408 7 7 7 9 1,475 1,913
Total 621 122 190 180 163 2,017 3,293
15. 15
Investments
Investments - R$ MM
and a significant increase in investments.
2004 2005 2006 2007 2008 2009 2010 2011 2012
CEMAR 70 232 306 394 465 419 399 497 619
Celpa - - - - - - - - 42
Light - - - - 137 141 - - -
Geramar - - - - 24 107 16 0.4 0.4
Total 70 232 306 394 626 667 415 497 661
* Celpa's investments from 2012 count only investments made in November and December 2012.
17. 17
CEMAR: Highlights
MA
Distribution company in the State of Maranhão
2.1 million clients (4th largest in the Northeast region)*
Billed energy (1Q13): 1,236 GWh
Annual gross revenues of R$ 3.0 billion in 2012.
Energy Sales (1Q13)
Clients (1Q13)
2.1 million
1,236 GWh
*Source: ABRADEE
RS
SC
PR
SP
MG
GO
MT
AC
AM
RR
RO
BA
PI
MA
PA
AP
TO
CE
RN
PE
AL
SE
MS
RJ
ES
DF
PB
RS
SC
PR
SP
MG
GO
MT
AC
AM
RR
RO
BA
PI
MA
PA
AP
TO
CE
RN
PE
AL
SE
MS
RJ
ES
DF
PB
49.2%
21.5%
20.1%
9.2%
Residential Industrial
Commercial Others
89.0%
4.3%6.3%
0.4%
Residential Industrial
Commercial Others
18. 18
CEMAR: History
CEMAR under control of
Equatorial
1958-
Jun. 2000
Aug.2000-
Aug.2002
Aug.2002-May
2004
May 2004-
Present
State owned
CEMAR under PPL Global’s
control
ANEEL’s intervention
CEMAR under control of
Equatorial
23. 23
Celpa: Highlights
Distribution company in the State of Pará
1.9 million clients
Billed energy (1Q13): 1,566 GWh
Annual gross revenues of R$ 3.3 billion in 2012.
Energy Sales (1Q13)
Clients (1Q13)
1.9 million
1,566 GWh
RS
SC
PR
SP
MG
GO
MT
AC
AM
RR
RO
BA
PI
MA
PA
AP
TO
CE
RN
PE
AL
SE
MS
RJ
ES
DF
PB
RS
SC
PR
SP
MG
GO
MT
AC
AM
RR
RO
BA
PI
MA
PA
AP
TO
CE
RN
PE
AL
SE
MS
RJ
ES
DF
PB
PA
PA
85.0%
7.3%
7.6%
0.2%
Residential Industrial
Commercial Others
40.2%
17.7%
23.8%
18.3%
Residential Industrial
Commercial Others
24. 24
Celpa: History
Celpa under Equatorial’s
control
1962-Jul.1998
Jul.1998-
Oct.2012
Nov.2012-
Present
State owned
Celpa under Grupo Rede’s
control
Celpa’s Judicial Recovery
Filing
Feb. 2012
26. 26
Tariff Review Results
All values are nominal and in R$ million.
CELPA 2011
Gross RAB 2,338
Net RAB 1,472
Operating Costs (starting point) 429
Operating Costs (upper limit) 352
Regulatory Depreciation 95
Regulatory EBITDA 253
Deliquency Rate (% GOR) 1.0%
X Factor (ex-ante) 2.42%
Regulatory Losses* 41.55% - 34.00%
* Non-technical over low-voltage market
27. 27
• 1.9 million clients in 144 municipalities, covering the whole state of Pará (total
area 1,247,955 km²)
• Energy sales reached 1,566 GWh in 1Q13, 1.9% higher than 1Q12’s figures.
• In 1Q13, energy losses from the last 12 months represented 35.9% of required
energy, 3.7 p.p. more than the 32.2% recorded in 1Q12.
• In 1Q13, DEC and FEC for Celpa (accumulated over the last 12 months) were
94.1 hours, down 7.0%, and 47.7 times, a 9.0% decrease when compared
to indices observed at the end of 1Q12.
• More than 334 thousand clients connected by the Light for All Program.
CELPA: Distribution
2011 2012 1Q13
Energy Sold GWh 6,288 6,383 1,566
Net Revenues R$ MM 2,434 2,350 530
Manageable Costs (*) R$ MM 525 1,069 133
Non-Manageable Costs R$ MM 965 1,233 415
EBITDA R$ MM 256 (355) (17)
Net Income R$ MM (391) (697) (57)
Net Debt R$ MM 1,552 1,219 1,084
Net Debt / EBITDA vezes 6.1 N/A N/A
Clients '000 1,836 1,931 1,952
EBITDA/Client R$/Cliente 139 N/A N/A
DEC (**) Horas/Ano/Cliente 99.7 101.6 94.1
FEC (**) Horas/Ano/Cliente 55.9 50.9 47.7
Total Losses (**) % 31.6% 35.0% 35.9%
CAPEX R$ MM 487 433 83
PLPT (***) R$ MM 165 46 3
(*) Includes Construction Costs/Revenues
(**) Last 12 months
(***) Light For All Program
All values are in accordance with IFRS
31. 31
Geramar: Highlights
• Two thermoelectric power plants fueled by high-viscosity heavy oil.
• Location: Miranda do Norte, Maranhão.
• Joint installed capacity of 331 MW.
• 240 MW of energy sold at the A-3 auction in 2007.
• Total fixed annual revenue (for both plants) of R$ 136 million* (in R$ of 2007), during 15 years.
*Revenues adjusted by inflation (IPCA)
• Start-up: January of 2010
• Total CAPEX: R$ 550 million.
• Equatorial’s share of CAPEX (25%): R$137 million. Equity = approximately R$45 million.
33. 33
Financial strength and solid
management team with
turnaround experience
Growth prospects and
consolidation opportunities
Result-oriented management
model
High level of
Corporate Governance
Agenda
34. 34
Firmino Sampaio
CEO
Eduardo Haiama
CFO and IRO
Thomas Newlands
IR Analyst
Phone 1: 55 21 3206-6635
Phone 2: 55 21 3206-6607
E-mail: ir@equatorialenergia.com.br
Website: http://www.equatorialenergia.com.br/ir
Contacts
35. 35
► 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 intensions or expectations for our clients.
► 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 prevented 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. Such estimates refer only to the date in which they were expressed, therefore the
Company has no obligation to update said statements.
► This presentation does not consist of offering, invitation or request of subscription offer or purchase of any
marketable securities. And, this statement or any other information herein, does not consist of a contract base or
commitment of any kind.
Disclaimer
