4. 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 3.82% related to
minority interests before Net Income, resulting in participation of 96.18%; and iii) 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 and 100% of
CELPA’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.
6. 6
Operating Highlights
► CEMAR’s total billed energy volume reached 1,489 GWh in 3Q14, 9.3% higher than in 3Q13. The total
volume distributed by CELPA (captive and free markets) totaled 2,087 GWh in 3Q14, representing
growth of 12.4% YoY.
► In CEMAR, energy losses of the last 12 months ending 3Q14 represented 17.3% of the required
energy, with a decrease of 0.5 percentage points compared to 17.8% recorded in 2Q14. In CELPA, total
losses ended the year at 31.7% of the required energy, a decrease of 1.3 percentage points compared
to the 33.0% recorded in 2Q14.
► In 3Q14, CEMAR’s DEC and FEC indexes (accumulated over the last 12 months) were 16.5 hours, a
decrease of 14.0%, and 10.9 times, an increase of 3.2%, compared to those observed at the end of
3Q13. In CELPA, these same indexes closed the quarter with improvements of 39.3% and 27.2%,
respectively.
7. 7
► Net operating revenues (NOR) in 3Q14 reached R$1,670 million, 38.8% higher than 3Q13’s NOR.
► In 3Q14, Adjusted Regulatory EBITDA was R$276 million, compared to R$228 million in 3Q13, a 21%
increase.
► The Adjusted Regulatory Net Income of the quarter amounted to R$ 140 million compared to R$ 135
million in the 3Q13.
► In 3Q14, Equatorial's consolidated investments totaled R$323 million, 115% higher than those made in
3Q13.
► Due to MP 651, in September, CEMAR paid R$49 million in fiscal debt originally restructured through REFIS,
being R$ 15 million in cash and R$ 35 million compensated through tax loss carryforward.
► In August, CELPA restructured through REFIS (Law 12,996/14) R$ 151 million in fiscal debt that, after the
inclusion of new debt, discounts and compensation through tax loss carryforward, became R$ 98 million.
► In October, CEMAR concluded the issuance of R$ 400 million in new long term debt.
► In October, CELPA received R$ 67 million in CCC Subvention, due to the Marajó Island interlinking project to
the SIN (National Interconnected Grid, in Portuguese)
Financial Highlights
11. 11
Distribution – DEC and FEC - CEMAR
► CEMAR: In 3Q14, the DEC index decreased 14.0% compared to 3Q13 while the FEC index increased 3.2%
compared to the same quarter last year.
16,5
19,2
3Q13 3Q14
-14.0%
10,910,6
3Q13 3Q14
3.2%
FEC
(times – last 12 months)
DEC
(hours – last 12 months)
12. 12
► CELPA: Energy demand growth of 12.4% in energy sales in 3Q14 (Captive Market + Free), reaching 2,087 GWh.
Energy Market - CELPA
Electricity Consumption per Segment (MWh)
Energy Balance (MWh)
CONSUMPTION SEGMENTS (MWh) 3Q13 2Q14 3Q14 Chg. 9M13 9M14 Chg.
Residential 700.202 811.033 867.152 23,8% 1.999.630 2.445.535 22,3%
Industrial 339.552 326.518 346.503 2,0% 929.362 989.717 6,5%
Commercial 418.796 421.382 445.746 6,4% 1.193.639 1.265.849 6,0%
Others 310.328 327.397 332.268 7,1% 888.331 967.025 8,9%
TOTAL 1.768.878 1.886.330 1.991.669 12,6% 5.010.962 5.668.126 13,1%
Free Consumers 87.716 92.915 95.700 9,1% 254.574 278.677 9,5%
TOTAL (Captive + Free) 1.856.593 1.979.245 2.087.369 12,4% 5.265.536 5.946.803 12,9%
ENERGY BALANCE (MWh) 3Q13 2Q14 3Q14 Chg. 9M13 9M14 Chg.
Energy Sales (Captive + Own Consumption) 1.775.472 1.894.709 2.000.297 12,7% 5.030.136 5.692.665 13,2%
Free Market 87.716 92.915 95.700 9,1% 254.575 278.677 9,5%
Total Losses 1.053.750 906.654 948.602 -10,0% 3.015.885 2.713.875 -10,0%
Required Energy 2.916.937 2.894.278 3.044.599 4,4% 8.300.595 8.685.217 4,6%
Own Generation 115.621 113.355 121.301 4,9% 328.572 341.416 3,9%
Energy Purchase (Contracts) 2.801.316 2.780.923 2.923.298 4,4% 7.972.023 8.343.801 4,7%
(*) Includes sales to the segments, own consumption and free market.
14. 14
Distribution – DEC and FEC
► CELPA: In 3Q14, the DEC index (LTM) improved 39.3% compared to 3Q13 while the FEC index (LTM)
decreased 27.2% compared to the same quarter last year.
19. 19
100% CEMAR + 100% CELPA
Net Debt - Consolidated
Net Debt (R$MM) and Net Debt/ Regulatory EBITDA
(Last 12 months)
Net Debt Reconciliation (R$MM)
1.189 1.285
1.0891.077
1.453
1,4
1,2
1,71,81,7
3Q13 4Q13 1Q14 2Q14 3Q14
3.506
820
1.233
1.453
Gross Debt Net
Regulatory
Assets
Cash Net Debt
20. 20
65.11% CEMAR + 96.18% CELPA
Net Debt – Pro-rata
Net Debt (R$MM) and Net Debt/ Regulatory EBITDA
(Last 12 months)
Net Debt Reconciliation (R$MM)
849
954
797
737
1.135
1,3
1,2
1,71,9
1,7
3Q13 4Q13 1Q14 2Q14 3Q14
2.862
1.135
1.015
712
Gross Debt Net
Regulatory
Assets
Cash Net Debt
21. 21
► CEMAR: In 3Q14, total capex reached R$106 million, of which R$85 million are own capex and R$21 million regarding the Light
for All Program (PLPT).
► CELPA: In 3Q14, total capex reached R$217 million, of which R$141 million are own capex and R$76 million regarding the Light
for All Program (PLPT).
Capex - Equatorial
INVESTIMENTS (R$MM) 3Q13 2Q14 3TQ4 Chg. 9M13 9M14 Chg.
CEMAR
Own (*) 62 70 85 38,0% 194 218 12,5%
PLPT 6 25 21 266,5% 18 62 243,7%
Total 68 95 106 57,2% 212 280 32,2%
CELPA
Own (*) 78 149 141 81,0% 250 391 56,6%
PLPT 4 45 76 1684,2% 23 150 550,8%
Total 82 194 217 163,6% 273 541 98,3%
Geramar
Generation 0 0 0 619,9% 0 0 143,7%
TOTAL EQUATORIAL 150 289 323 115,8% 485 821 69,4%
(*) Including indirect investiments from PLPT
23. 23
Corporate Updates
► Tariff Adjustments:
In August, ANEEL authorized tariff adjustments in CEMAR by 24.12% and in CELPA by 34.96%.
► Fiscal Debt Restructuring (REFIS):
Due to MP 651, CEMAR paid R$ 49 million in fiscal debts originally restructured under REFIS, beind R$ 15 million in
cash and R$ 35 million through compensation of tax loss carryforward.
In August 2014, CELPA restructured through REFIS (Law 12,996/14) R$ 151 million in fiscal debt that, after the
accrual of new debt, discounts and compensation through tax loss carryforward, became R$ 98 million.
► New Debt:
In October 2014, CEMAR concluded the issuance of R$ 400 million in new long term debt, being: i) R$ 200 million in
debentures and, ii) R$ 200 million through two commercial banks.
► CCC Subvention:
In October, CELPA received R$ 67 million in CCC Subvention, due to the Marajó Island interlinking project to the SIN
(National Interconnected Grid, in Portuguese).
25. 25
• 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.
Disclaimer
