3 q09 presentation

3Q09

Resultados
Financial and Operating
Operacionais
Results e Financeiros
3Q09
1T08

November 17, 2009

1

3Q09
Agenda

► Introduction

► Highlights

► Operating Results

► Financial Results

► CEMAR’s Tariff Review

► Recent Events

2

3Q09
Agenda

► Introduction

► Highlights




► Recent Events

3

3Q09
Introduction

Presentation of Operating and Financial Information
► The financial and operating information contained herein is presented in consolidated figures,
pursuant to Brazilian Corporate Law, based on revised financial information. The consolidated
financial information represents 100% of CEMAR’s results, excluding 34.86% related to minority
interests, 25% of Light’s results, excluding 11.97% related to minority interests, and 25% of
Geranorte’s result, which is currently at the pre-operating stage.
► The consolidated operating information represents 100% of CEMAR’s and 25% of Light’s results.
► In order to facilitate comparisons with 3Q08, the financial information is presented on a pro
forma basis considering the same interest held by Equatorial in RME and by RME in Light at the
end of 3Q09.
► Equatorial’s pro forma results for 3Q08 are based on Light’s pro forma results for the same
period, which were adjusted to reflect the changes introduced by Law 11,638/07, pursuant to CVM
Instruction 565/08, together with Profit Sharing, which is no longer recorded as personnel
costs/expenses and is now recognized after the Income Tax line.
► 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.

4

3Q09
Agenda

► Introduction

► Highlights




► Recent Events

5

3Q09
Operating Highlights

► CEMAR’s and Light SESA’s total energy volume amounted to 2,221 GWh in 3Q09, 4.1%
more than in 3Q08. CEMAR’s quarterly volume grew by 9.4%, while Light’s increased by
0.2% (considering both captive and free markets).

► CEMAR’s last-12-month energy losses totaled 26.4% of required energy in 3Q09, 2.5 p.p.
less than the 4Q08 ratio of 28.9%. Light’s last-12-month losses came to 21.5%, 1.1 p.p. up
compared with 4Q08.

► CEMAR’s last-12-month 3Q09 DEC index reached 9.4%, down to 25.2 hours, while last-12-
month FEC index improved 15.1%, to 15.8 times. Light’s last-12-month DEC and FEC
moved down 22.0% and 18.9%, reaching 9.0 hours and 5.8 times, respectively.

6

3Q09
Financial Highlights

► Net operating revenues (NOR) reached R$606.4 million in 3Q09, 3.8% up over 3Q08, reflecting
a 16.0% increase by CEMAR and a 6.1% downturn by Light.

► Adjusting for non-recurring effects, 3Q09 EBITDA reached R$215.1 million, up by 4.0% over
3Q08.

► Adjusted net income came to R$71.5 million in 3Q09, reflecting a 3.2% increase over 3Q08.

► In 3Q09, Equatorial’s consolidated investments grew 26.2% when compared with 3Q08.
CEMAR’s investments (excluding direct investments in the PLPT program) totaled R$62.2 million
in 3Q09, while Light’s investments came to R$37.2 million in the period, up by 7.7% over 3Q08.
Geranorte’s investments reached R$63.6 million in 3Q09.

7

3Q09
Agenda

► Introduction

► Highlights




► Recent Events

8

3Q09
Distribution – Electricity Market
Consolidated

► CEMAR: 3Q09 energy sales moved up by 9.4%, fueled by the increase of residential and commercial consumption, which
climbed 13.9% and 9.7% respectively.

► Light: Consumption at Light’s concession area (captive + free clients*) increased 0.2% on the 3Q09, reaching 1,248 GWh,
largely due to the residential sement (2.7%).

Electricity Consumption (GWh)

2,134 2,221 Electricity Consumption per Segment (GWh)
4.1%

CONSUMPTION CLASS AND 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg.
1,245 1,248 FREE CLIENTS (GWh)
0.2%
Residential 814.0 829.2 879.2 8.0% 2,457.9 2,632.1 7.1%
Industrial 238.6 195.4 221.6 -7.1% 662.7 615.8 -7.1%
Commercial 522.0 529.6 541.4 3.7% 1,574.8 1,627.9 3.4%
Others 400.4 392.1 426.5 6.5% 1,163.8 1,206.1 3.6%
889 973 Free Clients 159.0 152.3 151.8 -4.6% 499.5 450.8 -9.8%
9.4% Total 2,134.0 2,098.5 2,220.7 4.1% 6,358.7 6,532.6 2.7%

3Q08 3Q09
*To preserve comparability with the market approved by Aneel in the Tariff Review process, the energy and demand measured
CEMAR Light of free customers Valesul, CSN and CSA were excluded as the exit of these customers to the core network is planned.

9

3Q09
Distribution – Energy Balance and Losses

Energy Losses (*) - CEMAR Energy Losses (*) - Light

28.6% 28.9% 28.5% 28.1%
21.2% 21.5%
26.4% 20.5% 20.8%
20.4%

3Q08 4Q08 1Q09 2Q09 3Q09
3Q08 4Q08 1Q09 2Q09 3Q09

(*) Energy losses (required energy + free market)
(*) Energy losses over required energy

Energy Balance

ENERGY BALANCE (GWh) 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg.
Required Energy (*) 1,242 1,119 1,247 0.4% 3,441 3,482 1.2%
CEMAR

Sales (**) 890 793 975 9.4% 2,440 2,585 6.0%
Losses 352 327 272 -22.6% 1,002 896 -10.5%
Required Energy 1,472 1,518 1,516 3.0% 4,653 4,821 3.6%
Light

Sales 1,086 1,155 1,096 0.9% 3,424 3,501 2.3%
Losses (†) 386 363 421 8.9% 1,230 1,320 7.3%

(*) Including own generation. (†) Excluding basic network losses
(**) Including energy sales, own consumption and energy sales to CEPISA.

10

3Q09
Distribution – DEC and FEC (Last 12 months)

► CEMAR: The DEC index decreased 9.4% compared to the 3Q08 and the FEC index fell 15.1% on the same period.
► LIGHT: The DEC and FEC index decreased 22.0% and 18.9% respectively.

CEMAR LIGHT

27.8 -9.4%
25.2

DEC (hours)
11.5 -22.0%
9.0

3Q08 3Q09 3Q08 3Q09

18.6 -15.1% 15.8

7.1
-18.9% 5.8

FEC (times)

3Q08 3Q09 3Q08 3Q09

11

3Q09
Generation and Trading
Light Energia

► Electricity sold on the 3Q09 was 1.8% lower compared to the 3Q08 figure.

GENERATION - Light Energia (GWh) 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg.
Regulated Market Sales 273 254 259 -5.2% 793 772 -2.7%
Free Market Sales 24 30 30 22.7% 76 81 6.6%
Spot Sales (CCEE) 11 7 26 126.7% 45 68 53.4%
Total 309 291 314 1.8% 914 922 0.8%

Light Esco

► The 3Q09 sales, on Trading and Broker totaled 105 GWh, 3.0% less than in the 3Q08.

Volume - GWh 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg.
Trading 30 35 36 22.9% 92 99 7.9%
Broker 79 66 69 -12.7% 260 203 -21.9%
Total 108 101 105 -3.0% 352 302 -14.1%

12

3Q09
Agenda

► Introduction

► Highlights




► Recent Events

13

3Q09
Consolidated Performance

NOR EBITDA Net Income

69.3 65.9
206.9 -4.8%
-0.9% 205.0 -3.1%
584.1 3.8% 606.4 -0.2%
3.2% 38.3% 13.3%
42.3% 33.9%
50.3%
55.6%

86.9%
66.1% 64.7%
49.7% 57.7%
44.4%

3Q08 3Q09 3Q08 3Q09 3Q08 3Q09

CEMAR Light
CEMAR Light CEMAR Light Holdings (*)

(*) Holdings: Equatorial, RME and Light S.A.

14

3Q09
Consolidated Performance

Contribution per Segment

NOR EBITDA Net Income

0.9% 0.6% 0.6%
3.1% -1.4%
6.7% 5.6% -1.6%

94.1%
96.0% 93.7%

Distribution Generation Distribution Generation Distribution Generation

Trading Trading Holdings (*) Trading Holdings (*)

(*) Holdings: Equatorial, RME and Light S.A

15

3Q09
Adjusted EBITDA

Adjusted EBITDA

4.0% 3.9

215.1 6.2

206.9
205.0

3Q08 3Q09 RTD Adjust. Regulatory Losses 3Q09
EBITDA Adjust. EBITDA Adjust. EBITDA

► RTD Adjustment: R$3.9 million recognized in NOR, arising from the negative adjustment of the RTD (Delta PB) asset amount in
CEMAR.
► Regulatory Losses Adjustment: R$6.2 million that negatively affected NOR because of the adjustment in the loss level of
CEMAR’s first tariff cycle.

16

3Q09
Adjusted Net Income

Adjusted Net Income
3.2%

2.1
3.5

69.3 71.5
65.9

3Q08 3Q09 RTD Adjust. Regulatory Losses 3Q09
Net Income Adjust. Net Income Adjust. Net Income

► RTD (Deferred Tariff Repositioning) Adjustment: R$2.1 million recognized in the quarter, deriving from the negative adjustment
of RTD (Delta PB) asset amount in CEMAR, net of tax effects and minority interest.
► Loss Level Adjustment: R$3.5 million that negatively affected the quarterly result because of the loss level adjustment in
CEMAR’s first tariff cycle, net of taxes and minority interest.

17

3Q09
Debt: Schedule of Gross Debt Maturities

Consolidated Gross Debt
(100% CEMAR + 25% Light + 25% Geranorte)

60.7 60.7
Geranorte
83.3
144.9 10.4
116.0
Light 599.6 24.3
166.5 91.7

162.3 108.4

270.4
189.8
CEMAR 1,181.6

413.2

Gross Debt Short Term 2010 2011 2012 2013 After 2013

18

3Q09
Net Debt - Consolidated

100% CEMAR + 25% Light + 25% Geranorte

Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM)
(Last 12 months)

1.5 1.4
1.1 1,199.7
1.0 1,112.9
1.0 165.3
805.5
563.8
777.6
749.3
1,842.0
1,112.9

Gross Debt Net Cash Net Debt
3Q08 4Q08 1Q09 2Q09 3Q09
Regulatory
Asset

(*) Excluding the debt with Braslight

19

3Q09
Net Debt – Pro-Rata

65.12% CEMAR + 13.03% Light + 25% Geranorte

Net Debt (R$MM)(*) and Net Debt/ EBITDA Net Debt Reconciliation (R$MM)
(Last 12 months)

1.6 1.5
1.0 99.1
0.9 0.9
719.9
680.0 363.6
1,142.8
391.7 403.1 425.4
680.0

Gross Debt Net Cash Net Debt
3Q08 4Q08 1Q09 2Q09 3Q09 Regulatory
Asset

(*) Excluding the debt with Braslight

20

3Q09
Investments (CEMAR, Light and Geranorte)
► CEMAR invested R$ 62.2 million in the 3Q09, excluding direct investments related to the PLPT, 17.8% less then the same
period in 2008.
► Light Invested R$ 37.2 million in the 3Q09, 7.7% up on the same period in 2008.

CAPEX (R$MM) 3Q08 2Q09 3Q09 Chg. 9M08 9M09 Chg.
CEMAR
Own (*) 75.7 70.1 62.2 -17.8% 172.8 175.6 1.6%
PLPT 55.5 28.6 46.1 -16.8% 120.9 110.6 -8.6%
Total 131.2 98.7 108.4 -17.4% 293.7 286.2 -2.6%
Light
Distribution 28.3 25.2 31.9 12.7% 83.7 75.1 -10.3%
Generation 3.0 1.9 2.3 -23.7% 4.6 5.2 13.7%
Energy Trading 0.1 0.2 0.1 0.0% 0.1 0.6 1050.0%
Administration 3.3 3.7 3.0 -8.4% 5.6 7.4 32.4%
Total 34.5 31.0 37.2 7.7% 93.9 88.2 -6.0%
Geranorte
Generation - 21.9 63.6 N/A - 93.4 N/A
TOTAL EQUATORIAL 165.7 151.6 209.2 26.2% 387.6 467.7 20.7%
(*) Including the indirect PLPT investments

21

3Q09
Agenda

► Introduction

► Highlights




► Recent Events

22

3Q09
CEMAR’s Tariff Review
► On August 29, 2009, CEMAR’s new tariff became effective, in connection with the Company’s Second Periodic Tariff Review, as
ratified by ANEEL. The Repositioning Index was set at -11.03%. Considering the financial adjustments included in CEMAR’s tariffs,
related to the recovery of tariff differences in prior periods, the average perception to consumers will be -1.64%.

PERIODIC TARIFF REVIEW - 2009 (in R$ thousand)
Electricity Purchased for Resale 415,145
Charges 75,794
Energy Transportation 97,536
Parcel A 588,475
Reference Company 265,629
Provisions for Doubtful Accounts 12,743
Regulatory Depreciation 101,579
Interest on Asset 163,846
Parcel B 543,797
Required Revenues (A+B) = C 1,132,272
Other Revenues (D) 4,855
Verified Revenues (E) 1,267,126
Repositioning Index ( [C - D] / E) -11.03%
+ Financial Components 9.55%
Low Income 3.09%
Delta PB 4.66%
Others 1.80%
Repositioning Index (Including Financial Comp.) -1.47%
Average Effect on Consumers -1.64%

23

3Q09
Agenda

► Introduction

► Highlights




► Recent Events

24

3Q09
Recent Events

CEMAR:

► “Viva Luz Project”: In October 2009, the State of Maranhão approved the allocation of R$49.0 million in state
funds, to be used through the close of 2010, to exempt residential costumers with monthly consumption not
exceeding 50kWh from the payment of energy bills. The Project is estimated to benefit up to 500 thousand
residential consumers, which corresponds nearly to 30% of the CEMAR’s total clients.

Light:

In a meeting held on November 06, 2009, Light S.A.’s Board of Directors approved, among others, the following
issues:

► The additional dividend distribution of R$94.7 million, or R$0.46 per share of the Company, relating to
the profit reserve account balance as of December 31, 2008.

► The engagement of Light Serviços de Eletricidade S.A. to “Novo Refis”, as set forth by Law
11,941/2009, resulting in tax debt rescheduling in up to 180 monthly installments.

► The Share Buyback Plan, whereby up to 6,571,846 common shares issued by Light S.A. will be
purchased at market prices no longer than 365 days as of November 10, 2009. Said Plan represents up
to 6.73% of total free float and aims at complying with the Long-Term Shares Incentive Plan, without
diluting the interest held by current shareholders.

25

3Q09
Contacts

Eduardo Haiama
CFO and IRO

Thomas Newlands
IR Analyst

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

26

3Q09
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.

27

3 q09 presentation

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