Market
2
Continued economic growth in the concession area;
Energy Incorporation (Reduced energy losses);
Residential and commercial segments strongly correlated with temperature;
Temperature: use of historical average.
CAPTIVE MARKET(GWh)
2011 2012 2013 2017
Mercado
2011 2012 2013 2017
19,877
20,054
20,391
22,446
+2.4% p.a.
PREMISES
OPEX
3
Inflation estimates for the period: 5.53% p.a. (2014-17)
Synergy Project: gains of efficiency by redefining processes and seeking synergies with Cemig;
Continuous contract negotiation;
Feasibility study to the decision-making process
Efficiency aligned with regulatory costs of the last tariff revision.
Zero-Based Budgeting implementation and redesigning of operational processes.
MANAGEABLE COSTS AND EXPENSES (R$ MN)*
PREMISES
* Nominal amounts
+3.7% p.a.
2011 2012 2013 2017
716 772851
985
831
20
53
932
4
PDD / BILLED SUPPLY
Implantation of the UPPs, with an increase in the collected volume;
Expansion of the Light Legal program (APZ);
New technologies that allow remote cuts (smart electronic meters);
Revision of the remuneration model of law firms.
PDA
2011 2012 2013 2017
PDD/Forn Faturado
- 70 bps1.9%
3.0% 3.2%
1.2%
2011 2012 2013 2017
PREMISES
5
EBITDA
Market growth;
Non-technical loss reduction;
PDD reduction;
Operational efficiency gain;
Migration of regulated contracts to free market, with the increase in the average selling price of energy.
(R$ MN)*
Note: In accordance with the IFRS rules, interest in joint ventures will no longer be consolidated as of 2013.
Interest¹
¹ EBITDA proportionate to the following interest: Renova, Guanhães, Belo Monte, LightGer and Axxiom.
* Nominal amounts
2011 2012 2013 2017
2,048
+7.9% p.a.
255
2,303
1,2381,456
1,739
1,697
42
PREMISES
6
Investments
Total Investment (2014-17): R$4.5 bn;
Investment in combat losses, including special obligations;
Investments needed for World Cup and Olympics Games;
BNDES financing: 50% of CAPEX for distribution and 60% of the new generation projects.
INVESTMENTS (R$ MN) 2014-17Average
BELO MONTE HPP 25
ITAOCARA HPP AUCTION 42TOTAL 68
Distribution
Management Energy Efficiency
Generation
(R$ MN)*
* Nominal amounts
PREMISES
2012 2013 2014 Average 2015 - 2017
672713 698 733
267326 40
61
31 9577
155
10263
176797845
1,0551,074
30
Special Obligations
2011 2012 2013 - 2017
7
Net Debt
Net Debt Net Debt / EBITDA
Financing of generation expansion;
Gradual leverage reduction;
Increase in net debt due to the high volume of investments in network modernization and combat losses;
Leverage respecting the limit of covenants.
NET DEBT* AND NET DEBT/EBITDA(R$ MN)
* Nominal amounts
PREMISES
2011 2012 2013 2017
3,383
4,262
5,250
6,290
2.70
2.83 2.842.82
Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Company’s control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Company’s strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Company’s actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Company’s assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Company’s businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.
8