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Consumption growth and higherprofit despite the crisis
IR Contacts
Ronnie Vaz Moreira
Vice Chief ExecutiveOfficer and IRO
Ricardo Levy
Financial and IRSuperintendent
Cristina Guedes
IR Manager
Phone: +55 (21) 2211-2650/ 2660
ax: +55 (21) 2211-2787www.light.com.br
-mail: [email protected]
Conference Call
Date: 5/14/2009Time: 3 pm (Brazil)
2 pm (US ET)
Phones:
Brazil:+55 (11) 4688-6301
USA:+1 (888) 700-0802
Other countries:+1(786) 924-6977
Simultaneoustranslation into
English
Webcast:
www.light.com.br
(Portuguese andEnglish)
http://www.light.com.br/mailto:[email protected]://www.light.com.br/http://www.light.com.br/mailto:[email protected]://www.light.com.br/8/2/2019 Light SA_Relatorio de Revis
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EBITDA of R$350 million rose 13.5%, net income rose60.6% to R$168.3 million and consumption rose 1.6%1
Light achieved consolidated net income of R$168.3 million in
1Q09, compared to R$104.8 million in 1Q08. The increase of 60.6%
is due mainly to growth of the market during the last year and also
the reduction of manageable costs in the distribution segment.
In the quarter consolidated net revenue totaled R$1,437.6
million, 9.3% above 1Q08. This growth is mainly the effect of 3.7%
growth in the captive market between the periods, combined with an
average tariff increase of 4.70% that went into effect November 7,
2008.
Consolidated EBITDA for the quarter was R$349.6
million, 13.5% above 1Q08, mainly as a result of increased net
revenue. The EBITDA margin for the quarter was 24.3% compared
with 23.4% in 1Q08.
The Company ended 1Q09 with net debt of R$1,430.2 million,
a decline of 9.5% over December 31, 2008. This reduction is
explained by the increase in cash flow, combined with the regular
amortization of debt and corresponding interest payments. Our Net
debt/EBITDA leverage index was 0.9x at close of the quarter.
Release
Segmentation
1To preserve comparability with the market approved by Aneel in the Tariff Review process, the energy and demand
measured of free customers Valesul, CSN and CSA were excluded as the exit of these customers to the core network isplanned. In 1Q08, energy consumption of these customers totaled 662 GWh and demand was 2,794 GW.
Operational Highlights (GWh) 1Q09 1Q08 Var. %
Grid Load* 8,820 8,716 1.2%
Billed Energy - Captive Market 5,002 4,822 3.7%
Consumption in the concession area1 5,589 5,502 1.6%
Transported Energy - TUSD1 1,210 1,313 -7.8%
Sold Energy - Generation 1,262 1,211 -7.8%
Commercializated Energy (Esco) 112 132 4.2%Financial Highlights (R$ MM)
Net Revenue 1,438 1,316 9.3%
EBITDA 350 308 13.5%
EBITDA Margin 24.3% 23.4% -
Net Income 168 105 60.6%Net Debt** 1,430 1,549 -7.7%
* Captive market + losses + network use
** Financial Debt - Cash
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Light S.A. is a holding company that controls wholly-owned subsidiaries thatparticipate in three business segments: electricity distribution (Light SESA),
electricity generation (Light Energia) and electricity trading/services (Light Esco).
To increase the transparency of its results and enable investors to make a better
evaluation, Light also presents its results by business segment.
1st Quarter 2009 Results
1Q09 results are also adjusted to reflect the impacts of Law 11,638/07 on the
results of the period, pursuant to CVM Resolution 565/08, and also the
reclassification of employee profit sharing (PLR) after income tax, and thus it is no
longer classified as costs and personnel expenses. For further information, see
Annex V of this release.
Operating Performance
Distribution
Total energy consumption in Lightsconcession area (captive customers + free2) in
1Q09 was 5,589 GWh, and grew 1.6% when
compared to the same period in 2008 due to a
significant
consumption increase
in the captive market
of 3.7%, which more
than offset the decline
in consumption of
industrial customers free.
Captive Customers
2To preserve comparability with the market approved by Aneel in the Tariff Review process, the energy and demand
measured of free customers Valesul, CSN and CSA were excluded as the exit of these customers to the core network isplanned. In 1Q08, energy consumption of these customers totaled 662 GWh and demand was 2,794 GW.
Electric Energy Comsumption (GWh)
Total Market (Captive + Measured Free)
4,822 5,002
681 587
5,502 5,589
1Q08 1Q09
Capt ive Free
3.7%
-13.7%
1.6%
Electric Energy Consumption (GWh)1st Quarter
4,822
810
1,533
451
2,027
5,002
823
1,582
433
2,163
Residential Industrial Commercial Others Total
1Q08 1Q09
3.7%
3.2%
6.7%
1.6%
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In the first quarter of 2009, consumption billed in the captive market grew 3.7%when compared to the same period last year, mainly a result of consumption
growth in the residential and commercial classes. The increase in consumption of
these classes was influenced by the higher temperature this year, 1.9C above
average during the first quarter of 2008, despite the lower number of billing days in
the low and high voltage, 0.5 and 1.6 days, respectively. Two free market
customers returned to the captive market in the quarter, which represented
together in 2008, an average monthly consumption of 5 GWh.
The residential segment, which accounted for 43.2% of the captive market in thequarter, grew the fastest at 6.7%, mainly explained by the higher average
temperature recorded and the consequent use of refrigeration appliances. The
number of residential customers rose 1.3% to 3.6 million billed customers with
average monthly consumption of 198.4 kWh/month in this quarter, compared to
188.1 kWh/month in the same period of 2008.
Commercial segment consumption grew 3.2% in the quarter when compared to
1Q08 and represented 31.6% of the captive market this quarter. This segment was
also influenced by higher average temperatures in the period.
The industrial segment, which represented only 8.7% of the captive market, fell
4.0% versus the first quarter of 2008. This decline is explained by lower industrial
activity levels observed in the metal/metal products, rubber and plastics sectors,
and also by the interruption in Energia Plus billing due to the lack of excess energy,
resulting in a billing 12 GWh lower for this product. Not considering Energia Plus
billing in 1Q08, the reduction in consumption
was only 1.4% year-on-year.
Billed Demand (GW)
Free Costumers and Utilities
2,172
3,665
5,837
2,253
3,890
6,142
Free Utility Total
1Q08 1Q09
3.7%
6.1%
5.2%
Electric Energy Transportation - GWhFree Customers + Utilities
681587 633
1,313
623
1,210
Free Utility Total
1Q08 1Q09
-13.7%-1.5%
-7.8%
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Network Use
3
Energy transported to free customers and concessionaires amounted to 1,210 GWh
this quarter, 7.8% below 1Q08. This decline was caused by a 13.7% drop in free
customers consumption, in particular the steel industry, besides the return of 3
customers to the captive market between the periods, 2 of which occurred in 1Q09
that, together, represented a monthly average consumption of approximately 13
GWh in 2008. The flow of energy supplied to the concessionaires bordering Lights
area fell 1.5%.
Demand billed to free consumers and utilities grew 5.2% to 6,142 GW in this
quarter, driven primarily by demand from concessionaires, which rose 6.1%.
Demand from free customers also grew 3.7%, despite the economic crisis. Because
the composition of the free customers tariff is principally driven by demand
contracted, when considering a decline in volume of energy transported, the
revenue of these customers was not significantly affected.
Energy Flow
Electric Energy Losses
3To preserve comparability with the market approved by Aneel in the Tariff Review process, the energy and demandmeasured of free customers Valesul, CSN and CSA were excluded as the exit of these customers to the core network isplanned. In 1Q08, energy consumption of these customers totaled 662 GWh and demand was 2,794 GW.
Residential89.9 2,163.0
CCEAR Billed Industrial
Light Energia Energy 433.2
88.4 Own load 5,001.8
Light Commercial
7,147.6 1,582.2
1,386.9 Others
7,289.4 2,145.7 823.5
3,595.1 Basic netw.
losses
Adjustment 0.0
1,566.7
562.3
(*) Others = Purchase in Spot - Sale in Spot.
PROINFA
OTHERS(*)
(CCEE)
DISTRIBUTION ENERGETIC BALANCE - GWh
NORTE FLU
(CCEE)
Required E.
(CCEE)
AUCTIONS
(CCEE)
141.8
ITAIPU
(CCEE)
Position: january-march 2009
Differences
Light Losses Evolution12 months
6,
885
6,
743
6,
808
6,
791
6,
819
14.68% 14.57% 14.44% 14.36% 14.60%
20.79%20.64% 20.56% 20.51% 20.42%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09
GWh Losses
% Losses / Grid Load (Own + Transport)
Non-technical losses % Grid Load
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Non-technical energy losses have a direct correlation with the observedtemperature - the higher the temperature, the greater the consumption,
resulting from greater use of refrigeration appliances. This effect is caused
by the increase of illegal connections and fraudulent consumption. This is an
undesirable consequence of good performance of the market.
Lights total losses over the grid load totaled 20.79% in the 12 months
ended in March 2009, representing a 0.37 p.p.4 increase compared to the
loss index in the end of 2008. Non-technical losses over the grid load rose
0.24 p.p. The index was also affected by a decline in consumption of large
customers (who did not present non-technical losses), adversely impacting
the grid load, the denominator of the index.
Despite the rise in losses is important to
consider the advances made in our efforts to
combat losses. Based on Lights internal models
that predict losses explained by temperature,
the forecast for the increase in losses this
quarter would have been approximately 172
GWh. This means that we partially reduced loss
growth based on our loss prevention efforts.
In the first quarter of 2009, conventional loss
prevention measures including regular
inspections and customer standardization
reached over 69,000 consumers, an increase of
32% over 1Q08.
The improvements implemented in the processes of energy recovery, such
as the negotiation of amounts owed for customers where fraud was
detected, caused our energy recovered in 1Q09 to rise 76% over the prior
year, totaling 40.1 GWh recovered. The number of customers normalized
4 The 2008 figure was revised in view of the correction of the grid load in December
No rm a l i ze d C l i e n t s
R e c o ve r e d E ne r g yG W h
12,660
19,294
1 Q 0 8 1 Q 0 9
22.8
40.1
1 Q 0 8 1 Q 0 9
76%
52%
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(removal of irregularities found in inspections) rose 52% since the numberof inspections was stepped up, resulting in over 19,000 normalizations.
Network modernization continued in 2009. Our forecast is to complete 850
km of protected low-voltage network by the end of the year, compared to
120 km in 2008.
Light will continue to invest in new technology projects to sustainably
reduce losses over the long term. These projects have generated an
attractive return, however, the scale of implementation and the still pending
ratification process of the measure system centralized by Inmetro, has not
been sufficient to impede loss growth in view of the high temperatures
recorded in 1Q09.
Delinquency
Collections in the last 12
months represented 96.6%
of commercial billing, 1.6 p.p.
below the rate recorded in 2008. The
reduction in the collection rate can be
explained by: (i) the economic crisis
that caused retail customers credit
conditions to deteriorate. With this
trend, payment of energy, which has
lower interest rates on balances andlower fees compared to bank credit
and credit cards, has been damaged,
(ii) reduction in the consumption of large customers, also caused by the
crisis. With a decline in large customers as a percentage of total billing,
which have a lower delinquency rate than retail customers, the total
delinquency rate increased; (iii) stepping up of efforts to reduce energy
losses, with greater billing of past consumption. Once a past consumption
Quarterly colletion rateR$ MM 1Q09 1Q08 1Q09 1Q08Billing 2,176 1,971 2,053 1,924Collection 1,983 1,908 1,983 1,908
Collection Tax 91.1% 96.8% 96.6% 99.2%
Lagged (30 days)
Collection rate
12 months moving average
95.6%
99.4%
98.2%
96.6%
Mar-07 Mar-08 Dec-08 Mar-09
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installment agreement is made, the payments cause a negative impact onthe collection rate.
In the quarter, the collection rate was undermined by sales growth during
the summer months, where the effect of the lag between the date the
invoice was issued and the bill due date on collection is increased. This
effect was mitigated in 1Q08, given the unusual temperature recorded in
that period. To mitigate this lag, the collection fee is also calculated taking
into consideration the collection of the month in relation to the billing
recorded in the previous month, thus pairing the collection information to its
respective measure period. Based in this methodology, 1Q09 collection rate
would be 96.6% compared to a 99.2% in 1Q08, down 2.6 p.p. only.
The provision for past due accounts
constituted in 1Q09 was 2.9% of the
gross energy billed, or R$59.8 million,
a decrease of 0.4 p.p. in relation to
1Q08. Collections in the first quarter
suffer cyclical influence and tend to be
lower at the beginning of the year
since consumers payments of various
accounts are due, in addition to Lights
electric bills.
Operating Quality
Since 2008 the Company has intensified its investments in the electricity
distribution system, seeking to improve the quality of its electricity supply
and to increase the capacity of its distribution network. This quarter
investments in these items totaled R$13.0 million compared to R$27.2
million in 1Q08. After a period of deterioration of quality indicators due to
an increase in the number of scheduled disconnections, the indicators have
shown improvement compared to the same period in 2008, even in similar
weather conditions.
PDD/Gross Revenue (Billed Sales)
2.9%2.5%
3.3%
1Q08 4Q08 1Q09
R$ MM 1Q08 1Q09 Variation
PDD 60.3 59.8 (0.4)
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Investments in 2008, highlighting the replacement of the conventionalnetwork with space cable (compressed MT network), and installation of
remotely commanded keys to reduce interruption times, along with a
reduction in planned disconnections, were instrumental to improving our
indicators. The electrical system maintenance plan began to be monitored
by a fully implemented SAP system module providing better management
and having a positive impact on the continuity of service.
Generation
Energy sold in the Regulated Procurement Environment (ACR) and Free
(ACL) in 1Q09 was 1,039.5 GWh and 86.0 GWh, respectively. In the
Regulated market, the volume of energy sold was 1.9% below the same
period in 2008, resulting from the allocation of demand for contracts by the
distributors. In the Free (ACL) market, the volume of energy traded fell
22.5% due to increased allocation of hydrological hedge in 1Q08, since spot
market prices seen during the first quarter were very high. An increase spot
market energy sales volume in 1Q09 was caused mainly by the occurrence
of hydrological conditions that were more favorable than those observed in
1Q08, generating a hydraulic surplus for sale on the spot market.
ELC / EFC - 12 Months
5.73
7.21
6.22
9.7010.95
6.96EFC
ELC
2009 2008 2007
ELC Equivalent Length of Interruption pe r Consumption Unit (hs)EFC Equivalent Frequency of Interruption per Consumption Unit (n.)
LIGHT ENERGIA (GWh) 1Q09 1Q08 %
Regulated Contracting Environment Sales 1,039.5 1,059.8 -1.9%
Free Contracting Environment Sales 86.0 110.9 -22.5%
Spot Sales (CCEE) 136.9 40.6 237.2%
Total 1,262.4 1,211.3 4.2%
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Trading
In the first quarter of 2009, the Light Esco sold 111.8 GWh directly, a
15.2% drop in trading volume compared to 1Q08. This decline is explained
by the higher energy prices in 1Q08 in the spot market, whose average
price was R$275.9/MWh that altered the seasonality curve of purchase and
sale contracts by Light Esco.
In addition to direct sales, Light Esco also provided consulting services and
represented free clients before the CCEE. These activities included
operations of around 273.4 GWh and 9 clients.
In February 2009, Light Esco participated in the 9th Adjustment Auction
where it negotiated the sale of 15 MW average (Mar/09 to Dec/09) at an
average price of R$ 145.77/MWh.
In the area of energy services and infrastructure, agreements for two
projects were reached: one with the Globo network, and another with the
Quartier Ipanema condominium. The first is to construct a 138 kV
substation and remodel the PROJAC cold water generation system. This
project represents the substantial increase of electric power consumption by
Globo.
The second project is to replace the three existing Chillers with high energy
efficiency new ones, lowering electricity and maintenance costs,
contributing to customer loyalty through the benefits of power efficient
applications for alternatives to natural gas and other sources, in addition to
the technological renovation that reduces impact on the environment.
Financial Performance
Net Revenue
Volume (GWh) 1Q09 1Q08 Var.%Trading 111.8 131.8 -15.2%Broker 273.4 358.9 -23.8%Total 385.3 490.8 -21.5%
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Consolidated
The net operating revenue totaled R$1,437.6 million in 4Q08, 9.3% higher
than in 1Q08, mostly as a combined effect of the increased billed volume in
the captive market between the period, and the higher tariff in force, the
effects of the tariff review in November 2008, which adjusted Light's tariff
up by 4.70% in average.
Distribution
Net revenue of the distribution segment was
R$1,369.8 millions in the quarter, 11.0% above
net revenue in 1Q08. The increase was
principally due to consumption growth of 1.6% in
the total market, aligned with a 4.7% rise in the
average tariff. Consumption growth in the
residential and commercial segments stands out,
which represented 79% of revenue from the
captive market.
Net Revenue (R$ MM) 1Q09 1Q08 Var. %
Distribution
Billed consumption 1,243.0 1,130.0 10.0%Network use (TUSD) 87.1 96.6 -9.9%
Short-Term (Spot) - 1.8 -
Others 39.7 5.5 627.3%
Subtotal (a) 1,369.8 1,233.9 11.0%
Generation
Generation Sale 65.1 76.9 -15.3%
Short-Term (Spot) 5.2 7.8 -32.7%
Others 1.3 1.1 24.4%
Subtotal (b) 71.7 85.7 -16.4%
Comercialization
Energy Sales 13.5 27.8 -51.4%
Others 4.4 2.1 110.4%Subtotal (c) 17.9 29.9 -40.1%
Others and Eliminations (d) (21.8) (33.9)
Total (a+b+c+d) 1,437.6 1,315.7 9.3%
(2) Free and regulated contracting environment
(3) CCEE Short-Term Market
(1) It includes "Not Billed", which represents the energy consumption of the period
but billed in the next period
Net Revenue by Class - CaptiveR$ MM - 1Q09
Residential
47%
Industrial8%
Commercial32%
Others13%
398
586
101
159
Electric Energy Consumption GWh - Captive
1Q09
Residential43%
Industrial9%
Commercial32%
Others16%
2,163823
1,582433
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It is worth mentioning that once the market ratified by Aneel in the tariffReview process did not take into consideration energy and CSN demand,
Valesul and CSA due to its planned leaving to the core network, any change
in the market of these customers will be neutral on total revenue of the
distributor. Given lower consumption and demand of CSN and Valesul this
quarter, a regulatory asset has been formed, distributed among other lines
of revenue, which fully compensates this reduction.
Generation
Net revenue in the quarter was R$71.7 million, 16.4% below 1Q08. This
reduction was due to lower energy sales volume in the Free Market (ACL)
and Regulated Environment (ACR), that together dropped a total of 3.9%.
Lower volume sold in the regulated environment was a result of the decision
to allocated contract demand to the distributors, with reduced volume in
this quarter, and was partially offset by higher contracts prices because ofthe inflation adjustment. The decline in revenue from the free market is a
consequence of a smaller energy allocation (hydrological hedge) in this
quarter when compared to 1Q08 due to the higher relative prices prevalent
last year in the spot market, whose average price was R$ 275.9/MWh.
Trading
Net revenue in the quarter of R$17.9 million fell 40.1% when compared to
1Q08. This reduction is a function primarily of lower direct sales volume in
this quarter versus 1Q08, due to the difference in the seasonality curve of
sale contracts with lower allocation this quarter compared to the same
quarter in 2008. Besides lower sales, a R$200.3/MWh drop in the average
CCEE energy price (spot) also adversely affected revenue from this
segment.
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Costs and Expenses
Consolidated
Consolidated Operating Costs and Expenses
In the first quarter of 2009, in particular due to the 10.7% rise in non-
manageable distribution costs, operating costs and expenses were 7.1%
above the same period last year. To a lesser extent, expenses rose R$10.0million this quarter from a provision for the Stock Option Plan, which
affected the personnel account of Light SA, whereas no amount had been
provisioned in 1Q08.
Distribution
In the quarter, costs and expenses of the energy distribution business were
6.1% above 1Q08 as shown in the table below. The increase was caused by
a 10.7% increase in non-manageable, pass-through costs and expenses in
the fee, and in spite of a 7.2% decline in manageable costs and expenses.
Operating Costs andExpenses (R$ MM) 1Q09 1Q08
(%)
Distribution (1,127.1) (1,061.8) 6.1%Generation (33.0) (30.7) 7.5%Comercialization (15.2) (24.6) -38.4%Others and Eliminations 10.9 30.4 -63.9%
Consolidated (1,164.3) (1,086.8) 7.1%
Costs and Expenses (R$ MM) 1Q09 1Q08 (%)
Non-Manageable Costs and Expenses (874.7) (790.0) 10.7%Purchased Energy (Includes charges) (896.6) (800.0) 12.1%
CVA 27.5 14.3 91.8%
Others (Mandatory Costs) (5.6) (4.4) 28.4%
Manageable Costs and Expenses (252.4) (271.8) -7.2%
PMSO (116.7) (123.1) -5.1%
Personnel (47.2) (48.5) -2.7%
Material (3.9) (3.6) 6.1%
Outsourced Services (53.3) (57.8) -7.8%
Others (12.3) (13.1) -5.8%
Provisions (65.5) (76.1) -13.9%
Depreciation (70.1) (72.7) -3.5%Total Costs and Expenses (1,127.1) (1,061.8) 6.1%
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Non-Manageable Costs and Expenses
In the first quarter of this year, non-
manageable costs were R$874.7 million. The
10.7% increase was mainly because the cost
of purchased energy plus charges (excluding
the effect of CVA) rose 12.1% when
compared to 1Q08. Purchased energy rose
mainly due to: (i) the Itaipu rate rose
approximately 10% in dollar terms, plus
dollar appreciation of 35.0% between the
periods, (ii) TPP Norte Fluminense (Norte
Flu) average price increase of 26.2%
reflecting the higher compensatory
surcharge for gas (gas CVA) impacted by
the appreciation of the dollar, (iii) 6.4%
increase in auction contracts in Nov/08
impacted by inflation of 6.0% (IPCA - Nov07 to Oct/08) and the entry of
new products in the 1st and 2nd thermal energy auction (T-15) and hydro
(H-30), and (iv) increases in charges of 16.5%.
The average cost of purchased energy, excluding spot purchases, was
R$109.9/MWh in 1Q09 while in 1Q08 the average cost of purchased energy
was R$92.5/MWh.
Purchased Energy - R$ MM
1st Quarter
800.0
896.6
32% 31%
24%26%
16%
20%
15%
13%
15%
7%
1Q08 1Q09
AUCTIONS NORTE FLU ITAIPU OTHERS* SPOT*No inclui custos de CVA
Purchased Energy - GWh
1st Quarter
6,8787,289
23% 21%
21% 19%
48% 49%
8%7%2%3%
1Q08 1Q09NORTE FLU ITAIPU AUCTIONS SPOT OTHERS
R$ mn 1Q09 1Q08CVA Formation 68.8 32.4
Energy 55.1 20.7Itaipu Transport - -Charges 13.7 11.7
CVA Amortization (41.3) (18.0)Energy (11.6) (18.6)Itaipu Transport (1.3) 0.2Charges (28.4) 0.4
Net CVA 27.5 14.4
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Manageable Costs and Expenses
Operating manageable costs and expenses (personnel, materials, outsourced
services, provisions, depreciation and others) totaled R$252.4 million in 1Q09, a
7.2% drop between the periods. This result can be explained mainly by lower
provisions, 13.9% below 1Q08, and by the 5.1% reduction in costs and
manageable expenses comprising PMSO.
The costs and expenses related to staff, equipment, services and others amounted
to R$116.7 million in the quarter, 5.1% below the R $ 123.1 million registered in
1Q08. This result was due mainly to a 7.8% decline in the cost of third party
services, or R$4.5 million, due to improved management of contracts and
renegotiation of IT services. Personnel costs were also reduced by 2.7% compared
to 1Q08.
This quarter provisions (Past dues and other provision for contingencies) fell R$10.6
million due primarily to a review of the methodology for provisioning of labor claims
resulting in fewer new provisions. We provisioned R$59.8 million for past due
accounts representing 2.9% of gross energy billing, a reduction of 0.4 p.p. in
relation to the provision made in the same period of 2008.
Generation
In 1Q09 Light Energys costs and expenses were R$33.0 million, 7.5%
above 1Q08, mainly due to the 19.2% increase in CUSD costs (use of the
distribution system), a reflex of the adjustment of extraordinary energy
purchase carried out in December 2008 and the 19.6% increase in other
costs, reflecting the 22.7% higher cost of hydro resources royalties.
Expenses were composed as follows: CUSD (37.9%), staff (12.0%),
materials and outsourced services (10.4%), other and depreciation
(39.8%). In 1Q09, the cost of personnel per MWh was R$12.46/MWh, while
in 1Q08 the amount was R$11.90 per MWh.
Operating Costs and Expenses - R$ MM 1Q09 1Q08 (%)Personnel (4.0) (4.7) -16.2%Material and Outsourced Services (3.4) (3.3) 2.9%Purchased Energy (CUSD) (12.5) (10.5) 19.2%Depreciation (6.1) (6.3) -3.4%Others (includes provisions) (7.1) (5.9) 19.6%Total (33.0) (30.7) 7.5%
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Trading
In 1Q09, costs and expenses totaled R$15.2 million, 38.4% below the same period
in 2008. This reduction was mainly due to lower volume of energy purchased by
Light Energy in this quarter, since it allocated its energy from the hydrological
hedge in a linear fashion this year, making less energy available for sale through
the market. In 1Q08 the strategy was to allocate more energy to the hydrological
hedge due to the high prices in the spot market, whose average price was R$
275.9/MWh in that period.
EBITDA
Consolidated
Consolidated EBITDA rose 13.5% year-on-year,
totaling in the first quarter of 2009 R$349.6
million. This result is mainly due to higher net
revenue, arising from the growth in captive market
consumption, combined with the effects of the
tariff review, which readjusted Lights tariff by
4.70%, on average, effective as of November
2008, in addition to the reduction in manageable
costs in the distribution segment.
Consolidated EBITDA margin rose 0,9 p.p. between the periods, rising from
23.4% in 1Q08 to 24.3% this quarter.
Operating Costs and Expenses - R$ MM 1Q09 1Q08 (%)
Personnel (0.5) (0.4) 16.7%
Material and Outsourced Services (2.3) (1.1) 115.0%
Purchased Energy (12.1) (22.8) -47.1%
Depreciation (0.2) (0.2) -25.7%Others (includes provisions) (0.1) (0.0) 68.1%Total (15.2) (24.6) -38.4%
EBITDA per segment *
1Q09
Distribution
86.8%
Commercial.
0.8%
Generation
12.4%
*Does not consider eliminations
EBITDA - 1Q09/1Q08 - R$ Million
308
(4) 35035 11
EBITDA - 1Q08 Net Revenue Manageable Costs
(PMSO)
Provisions EBITDA - 1Q09
13,5%
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EBITDA in the distribution segment grew 27.8% and therefore its share in
consolidated EBITDA rose to 86.8% of the total. The generation and
marketing segments represented 12.4% and 0.8% of EBITDA, respectively.
Distribution
EBITDA of the Distributor in 1Q09 totaled R$312.8 million, 27.8% above the same
period last year. Higher EBITDA was the result of higher energy billed and
consumption growth of 3.7% and a 7.2% decline in manageable costs. EBITDA
margin for the quarter was 22.8%, 3.0 p.p. above1Q08.
Generation
Light Energy's EBITDA fell 27.1% compared to 1Q08, totaling R$44.7 million. This
reduction is mainly a result of the reduction in net revenue of 16.4%, resulting from
the choice to follow a more linear seasonality curve for non-purchased energy this
year, compared to the strategy of increased allocation in the first quarter in 2008.
Another factor was the lower spot sales prices during the quarter, affecting revenue
in the free and spot segments. EBITDA margin for the quarter was 62.4%, 9.1 p.p.
below the amount recorded in 1Q08.
Trading
EBITDA totaled R$2.9 million this quarter, compared to the R$5.5 million
registered in 1Q08, a decline of 47.3%. The reduction can be explained
mainly by the drop in the volume of energy sold directly, according to the
lower availability of energy from Light Energy, and also lower prices for
short term operations. EBITDA margin for the quarter was 16.3%, 2.2 p.p.
less than the margin recorded in 1Q08.
Consolidated EBITDA- R$ MM 1Q09 1Q08 Var.%Distribution 312.8 244.7 27.8%Generation 44.7 61.3 -27.1%
Commercialization 2.9 5.5 -47.3%Others and eliminations (10.8) (3.6) 200.0%Total 349.6 308.0 13.5%Margem EBITDA (%) 24.3% 23.4% -
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Consolidated Financial Result
Financial result in the quarter was a negative R$24.8 million, compared to a
negative R$81.9 million in the first quarter of 2008, an improvement of
69.8%. A reduction of 14.4% in financial income was more than offset by a
reduction of 47.8% in financial expenses.
Financial revenue in the quarter was R$46.3 million, 14.4% below the result
recorded in 1Q08. This decline was mainly due to lower income from
monetary variations since as of February 2008 the RTE rate adjustment was
no longer allowed.
The financial expense of R$71.0 million fell by 47.8% compared to 1Q08,
due mainly: (i) lower monetary update to Braslight liabilities, by the drop in
the rate of inflation (IGP - DI), to which the balance of our debt is indexed,
(ii) by adjusting the principal balance in dollars of the value of the collateral
(security - reducing debt) of National Treasury debt, creating a financial
income that exceeded the financial expense coming from National Treasury
gross debt caused by the recovery of the dollar in the period, and (iii) by
adjusting the present value of long-term receivables, other financial income.
Financial Result - R$ MM 1Q09 1Q08 (%)Financial Revenues 46.3 54.1 -14.4%Income - financial investments 17.4 12.8 35.7%
Monetary and Exchange variation 11.9 18.4 -35.5%
Swap Operations (1.1) 1.6 -168.6%
Others Financial Revenues 18.1 21.2 -14.9%
Financial Expenses (71.0) (136.0) 47.8%Interest over loans and financing (51.9) (54.7) 5.0%
Monetary and Exchange variation (13.9) (36.2) 61.6%
Braslight (private pension fund) (9.2) (38.8) 76.3%Swap Operations - (3.0) 100.0%
Others Financial Expenses 4.0 (3.2) 225.1%
Total (24.8) (81.9) 69.8%
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Indebtedness
The Companys gross debt on March 31, 2009 was R$2,166.5 million,
similar to the amount on December 31, 2008, even though there was a debt
increase in the quarter of approximately R$22.7 million. This debt was
taken on to finance the companys investment program. However, when
compared to March 31, 2008, gross debt rose by 11.5%, or R$222.9 million
since the company took on new debt of R$273.6 million in the last 12
months whose primary purpose was to finance investment projects.
The net debt of R$1,430.2 million was
lower by 9.5% and 7.7% compared to
December 2008 and March 2008,
respectively because of strong cash
flow. The net debt / EBITDA ratio was
reduced from 1.1 x in December 2008
to 0.9 x.
Our debt position continues to be comfortable, with an average term to
maturity of 4.4 years, and reduction of the average cost of debt
denominated in dollars, which was 2.0
p.p. cheaper for December 2008, now
at 12.0% pa. The average cost of
R$ MM Short Term % Long Term % Total %
Brazilian Currency 187.8 8.7% 1,825.8 84.3% 2,013.6 92.9%
Debenture 1st Issue 15.6 0.7% 15.6 0.7%
Debenture 4th Issue 0.0 0.0% 0.1 0.0% 0.1 0.0%
BNDES Rationing 84.4 3.9% 371.5 17.1% 455.9 21.0%
Debenture 5th. Issue 53.8 2.5% 920.8 42.5% 974.6 45.0%
CCB Bradesco 26.8 1.2% 450.0 20.8% 476.8 22.0%
ABN Amro 0.9 0.0% 80.0 3.7% 80.9 3.7%
Financial operations "Swap"
Others 6.3 0.3% 3.3 0.2% 9.6 0.4%
Foreing Currency 33.6 1.6% 119.3 5.5% 152.9 7.1%
National Treasury 25.4 1.2% 117.2 5.4% 142.6 6.6%
Import Financing 6.5 0.3% 1.9 0.1% 8.4 0.4%
BNDES Import Fin. 1.8 0.1% 0.1 0.0% 1.9 0.1%Gross Debt 221.4 10.2% 1,945.0 89.8% 2,166.5 100%
Cash 736.3Net Debt (a) 1,430.2
Braslight (b) 93.8 924.2 1,018.0
Net Regulatory Asset (c) 167.5 215.1 382.6Adjusted Net Debt (a+b-c) 2,065.6
Net Debt (ex-Braslight)
(R$ million)
1,549 1,580
1,430
Mar-08 Dec-08 Mar-09
Indebtedness(Brazilian Currency x Foreign)
91.9% 92.1% 92.9%
8.1% 7.9% 7.1%
Mar-08 Dec-08 Mar-09
Brazilian Currency Foreign Currency
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foreign currency debt of US$+5.3% pa remained stable when compared toDecember 2008. At the end of March, only 7.1% of total debt was
denominated in foreign currency. After the effect of foreign currency
hedging operations, our net exposure is only 3.8% of the total. Our policy is
to hedge is to protect the next 24 months of cash flow (principal and
interest) through the use of non cash swap instruments with first line
financial institutions.
Net income
Light reported net income of $ 168.3 million this quarter, an increase of 60.6%
compared to our 1Q08 results of R$104.8 million. This is mainly the result of 13.5%
higher EBITDA and 69.8% improvement in financial results between the periods.
There were no non-recurring effects in this quarter.
Capital Expenditures
In 1Q09, the Company invested
R$79.9 million in investment projects,
with highlight to the development of
distribution networks (new
connections, capacity increases and
corrective maintenance) and quality
improvements (structural optimization
Net Income - 1Q09R$ Million
104.8
168.3
57.2
41.6
(26.1)(9.2)
1Q08 EBITDA FinancialResult Taxes Others 1Q09
60.6%
CAPEX (R$ MM)
92.9
72.0
97.3
79.92.3
2.5 4.3
2.1
1.1
0.0
1Q08 1Q09
Distribution Administration Generation Commercial.
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and preventive maintenance), which absorbed R$52.8 million; and loss-prevention initiatives totaling R$19.1 million. In the generation segment,
investment totaled R$4.3 million, including the three new projects, in
addition to maintenance of the existing generation complex. The investment
plan foresees acceleration of the amounts to be invested during the year,
with a lower concentration in the first quarter of the year.
Projects to Expand Generation Capacity
During the first quarter of 2009 Light worked strongly towards its strategy
to expand in the generation segment where the following developments
occurred:
Issued by the INEA ASV - Authorization for Removal of vegetation for
the construction of PCH Paracambi. This permit is the last approval required
for the early deployment of PCH. The project will start in the first half of this
year, with a construction period of 24 months. The bidding for selection of
EPC is in its final phase;
The deployment of PCH Lajes is being initiated by the construction of
its water supply system through the civil works of the tunnel 2 and the
supply of hydromechanical equipment related to it. The required
environmental permits have been obtained, and the Basic Engineering
Design of the plant is in the process of approval with the ANEEL;
HP.P. Itaocara is in the development of Environmental Impact
Studies (EIA / RIMA) and Basic Engineering Design project that seeks to
bring the environmental demands of the region affected by the venture. The
entry into operation is planned for 2013, with construction period of 36
months;
The consortia whose contracts were signed with the constitution
Cemig in 2008, to the construction and operation of hydroelectric projects
PCH Paracambi and UHE Itaocara are in process of approval with the ANEEL.
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Besides these projects, the Company is considering entry into other projectsfor generation, which together ensure the growth of installed generation
capacity of at least 50%.
Cash Flow
In 1Q09, Lights cash flow was R$146.1 million, compared to a negative
R$95.9 million in 1Q08.
The cash flow this quarter, in which no dividends were paid, was 35.9%
above the cash flow before payment of dividends in 1Q08 which had totaled
R$107.5 million. The result is R$38.6 million higher due mainly to an
increase in net income and net income on a cash basis, which grew 60.6%
and 25.0% respectively.
R $ M M 1Q09 1Q08Ca s h i n t h e Beg i nn i ng o f t h e P e r i o d ( 1 ) 590.1 490.2N e t I n c o m e 168.3 104.8
Provision for Delinquency 60.2 60.3Depreciation and Amortization 76.3 79.1
Net Interests and Monetary Variations 42.9 53.1Braslight 9.2 38.8
Atualization / provisions reversal 5.1 15.9Others 65.6 (9.8)N e t I n c o m e C a s h B a s i s 427.6 342.0Working Capital (147.9) (47.9)Regulatories (RTE, CVA e Bubble) 20.6 (5.4)Contingencies (17.2) (14.7)Taxes 28.3 41.0Others (12.9) (54.8)Ca s h f r om Ope r a t i n g A c t i v i t ie s ( 2 ) 298.6 260.2Dividends Payment - (203.5)
Finance Obtained 22.7 -Debt Service and Amortization (70.2) (62.3)F i n an c i n g A c t i v i t i e s ( 3 ) (47.5) (265.8)Share Participations - -Concession Investments (110.6) (92.0)Deferred Aplications 5.7 1.6I n ve s tm en t A c t i v i ti e s ( 4 ) (104.9) (90.4)Ca sh in th e End o f th e P e r io d (1 + 2 + 3 + 4 ) 7 3 6 .3 394 . 3
Ca sh G en e ra t io n (2 + 3 + 4 ) 1 4 6 .1 (95 . 9 )
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In the financing activities, there was a decline of 82.1% between quarters,resulting from the payment of dividends of R $ 203.5 millions in March of
2008, covering the year 2007.
Net cash used in investing activities was 16.1% above the same period of
2008. This growth is explained mainly by the purchase of equipment that
has not been activated on the network, and also by the increase in capital
funding for the Companys investment plan.
Corporate Governance and the Capital Markets
On March 31, 2009, the capital stock of Light S.A. comprised 203,933,778
common shares, with no par value. The controlling group, Rio Minas Energia
(RME), retains 52.1% of the capital stock.
The Company's shares have been listed on Bovespa's Novo Mercado since
July 2005, in line with the best corporate governance practices and with the
principles of transparency and equity, in addition to granting special rights
to minority shareholders. Light S.A. shares are listed on the Ibovespa, Itag,
IGC, IEE, IBrX and ISE indexes.
Countrys biggestindividual electricitydistributor
Andrade Gutierrez Groupsdivision that invests inpublic services concession
Brazilian privateinvestors group(includes Brasligt)
Holding thatcontrols CEMAR.
AGCAndrade Gutierrez
Concesses
LUCELUCE do Brasil
Fundo de Investimento
em Participa
es
EQUATORIALEquatorial Energia
RMERio Minas Energia
Participaes S.A.
LIGHT S.A.
25% 25% 25% 25%
52.1%
BNDESPAR
MARKET
33.6%
14.3%
FreeFloat
: 47.9%
CEMIGCompanhia Energ
tica
de Minas Gerais
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Lights Board of Directors is formed by 11 members, 2 of which are electedindependently. The following 5 committees support the Board of Directors:
Finance, Management, Audit, Human Resources, and Governance and
Sustainability.
In the Board of Directors meeting that took place on April 3, 2009, Mr.
Eduardo Borges de Andrade was elected to the position of President and Mr.
Aldo Floris to the position of Vice-President of the Board of Directors of Light
S.A., both with a one year mandate.
Lights Board of Directors has 11 members, two of them elected
independently. There are five committees to help the Board of Directors:
Finances, Management, Audit, Human Resources and Governance and
Sustainability.
At the General and Extraordinary Assembly on March 18, 2009 the
shareholders approved the financial statements related to the 2009 results
as well as the proposal for distribution of dividends in the amount ofR$499,673,756.10, or R$2.45 per share, referring to the results verified in
2008. The first payment of dividends of R$2.00 per share was realized on
April 2, 2009, and the second, of R$0.45 per share is scheduled for
November 27, 2009. Shareholders also approved the installation of a Fiscal
Council at the Company, with a one year mandate, which will terminate at
the next General Assembly where the results of 2009 will be submitted for
approval.
Note: shares quotations are dividends adjusted.
BOVESPA (spot market) - LIGT3Daily Average 1Q09 4Q08 1Q08Number of shares traded (Million) 240,59 232,41 248,56Number of Transactions 557 582 483Traded Volume (R$ Million) $5,8 $5,1 $5,8Quotation per lot of 1000 shares: $22,18 $19,82 $18,51Share Valuing 11,9% 0,3% -19,3%
IEE Valuing 9,4% -6,7% -2,6%
Ibovespa Valuing 9,0% -24,2% -4,6%
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The IEE (Electric Power Index of the Bovespa) was up 9.4%, in line with the9,0% appreciation of the Ibovespa in the first quarter of the year. Lights
shares closed the quarter with an appreciation of 11.9%, with an average
daily trading volume of R$5.8 million. The graph below shows the evolution
of Lights share since RME took control on August 10, 2006.
Light x Ibovespa x IEE08/10/06 = 100 at 04/30/09
80
100
120
140
160
180
200
220
240
Aug-06
Sep-06
Oct-0
6
Nov-06
Dec-06
Jan-07
Feb-
07
Mar
-07
Apr-07
May
-07
Jun-07
Jul-0
7
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-
08
Mar
-08
Apr-0
8
May
-08
Jun-08
Jul-0
8
Aug-08
Sep-08
Oct-0
8
Nov-08
Dec-08
Jan-09
Feb-
09
Mar
-09
Apr-0
9
104% Light
27% Ibovespa
58% IEE
R$/share08/10/06 11.6704/30/09 23.82
2008IEE -12%
IBOV -41%
LIGT3 -14%
2009
IEE 23%IBOV 26%
LIGT3 20%
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Recent Events
Payment of Dividends: the AGM held on March 18, 2009 approved
the payment of dividends related to the year 2008, in the amount of
R$499.6 million. The payment was divided into two installments, the
first of which amounting to R$407.9 million, or R$2.00/share, started
on April 2, 2009, and the second, in the amount of R$91.8 million, or
R$0.45/share, is scheduled for November 27, 2009.
Authorization for the Removal of Vegetation (ASV) for PCH
Paracambi: on April 6 the INEA issued an authorization for the
removal of vegetation for the construction of PCH Paracambi. This was
the last necessary license to execute the construction works of the
PCH, with conclusion forecasted for the end of this semester.
Disclosure Program
Teleconference
Brazil: (55) 11 - 4688-6301USA: +1(888)700 0802Other countries: +1 (786) 924-6977Access code: Light
Conference Call - Dial number:
Schedule
05/14/2009, tuesday, at 3:00 p.m. (Braslia) and at 2:00 p.m. (Eastern time),
with simultaneous translation to English
Webcast: link on site www.light.com.br (portuguese and english)Access conditions:
Disclaimer
The information on the Companys operations and its Managements expectations regarding its future
performance was not revised by independent auditors.
Forward-looking statements are subject to risks and uncertainties. These statements are based on beliefs
and assumptions of our Management, and on information currently available to the Company. Statements
about future events include information about our intentions, beliefs or current expectations, as well as of
the Company's Board of Directors and Officers. Exceptions related to statements and information about
the future also include information about operating results, likely or presumed, as well as statements that
are preceded by, followed by, or including words such as "believes", "might", "will", "continues", "expects",
"estimates", "intends", "anticipates", or similar expressions. Statements and information about the future
are not a guarantee of performance. They involve risks, uncertainties and assumptions because they refer
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to future events, thus depending on circumstances that might or might not occur. Future results and
creation of value to shareholders might significantly differ from the ones expressed or suggested by
forward-looking statements. Many of the factors that will determine these results and values are beyond
LIGHT S.A.'s control or forecast capacity.
EXHIBIT I
Statement of Income by Company - R$ million
LIGHT SESA 1Q09 1Q08 %
Operating Revenue 2,242.5 1,971.3 13.8%Deductions from the operating revenue (872.7) (737.4) 18.4%
Net operating revenue 1,369.8 1,233.9 11.0%Operating expense (1,127.1) (1,061.8) 6.1%
Operating result 242.7 172.1 41.0%EBITDA 312.8 244.7 27.8%Equity equivalence - 11.7 -Financial Result (19.7) (83.4) 76.4%Other Operating Incomes 6.1 19.3 -68.4%Other Operating Expenses (0.8) (1.5) -43.4%Result before taxes and interest 228.3 118.3 93.0%Net Income 155.4 75.5 105.9%EBITDA Margin 22.8% 19.8% -
LIGHT ENERGIA 1Q09 1Q08 %Operating Revenue 82.4 97.6 -15.6%Deductions from the operating revenue (10.7) (11.9) -9.6%
Net operating revenue 71.7 85.7 -16.4%Operating expense (33.0) (30.7) 7.5%
Operating result 38.6 55.0 -29.8%EBITDA 44.7 61.3 -27.1%Equity equivalence - - -Financial Result (6.1) (10.5) 41.8%Other Operating Incomes - - -Other Operating Expenses - - -Result before taxes and interest 32.5 44.5 -26.9%Net Income 21.0 28.8 -27.2%EBITDA Margin 62.4% 71.5% -
LIGHT ESCO 1Q09 1Q08 %Operating Revenue 22.6 35.6 -36.6%Deductions from the operating revenue (4.7) (5.7) -17.7%
Net operating revenue 17.9 29.9 -40.1%Operating expense (15.2) (24.6) -38.4%
Operating result 2.8 5.3 -48.2%EBITDA 2.9 5.5 -47.3%Equity equivalence - - -Financial Result 0.2 0.2 -12.9%Other Operating Incomes - - -Other Operating Expenses - - -Result before taxes and interest 3.0 5.5 -46.0%
Net Income 1.9 3.1 -39.1%EBITDA Margin 16.3% 18.5% -
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EXHIBIT II
Statement of Consolidated Income
Consolidated - R$ MM 1Q09 1Q08OPERATING REVENUE 2,325.6 2,070.6
DEDUCTIONS FROM THE REVENUE (888.1) (754.9)
NET OPERATING REVENUE 1,437.6 1,315.7
OPERATING EXPENSE (1,164.3) (1,086.8)Personnel (62.1) (54.1)Material (4.5) (3.9)Outsourced Services (58.8) (62.3)Purchased Energy (872.0) (785.2)Depreciation (76.3) (79.1)Provisions (65.6) (76.1)Others (25.1) (26.1)
OPERATING RESULT() 273.2 228.9
EBITDA () 349.6 308.0
FINANCIAL RESULT (24.8) (81.9)Financial Income 46.3 54.1Financial Expenses (71.0) (136.0)
Other Operating Incomes 6.1 19.3Other Operating Expenses (0.8) (1.5)
RESULT BEFORE TAXES AND INTEREST 253.7 164.8
SOCIAL CONTRIBUTIONS & INCOME TAX (33.6) (63.0)DEFERRED INCOME TAX (44.6) 10.8PLR (7.2) (7.9)
NET INCOME 168.3 104.8
() Operation Result, Administration vision = Operating Result, accounting
norms (Item 1.9.7 of Notice CVM 01/2007) + financials (net financial expenses
+ equity pick-up)
() EBITDA = Operating Result, Administration vision + depreciation and
amortization. Not reviewable by the external audit
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EXHIBIT III
Consolidated Balance Sheet
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Consolidated Balance Sheet - R$ MMASSETS 3/31/2009 12/31/2008Circulating 3,332.1 3,351.4Cash & Cash Equivalents 736.3 590.1Credits 2,277.0 2,251.5Inventories 19.9 18.6Others 298.9 491.2
Non Circulating 6,198.8 6,110.6Realizable in the Long Term 1,806.2 1,756.7Miscellaneous Credits 1,381.7 1,406.6Others 424.5 350.1
Permanent 4,392.6 4,353.9Investments 18.6 13.6Net Fixed Assets 4,097.2 4,059.4Deferred Charges 0.0 0.0Intangible 276.8 281.0
Total Assets 9,530.9 9,462.0
LIABILITIES 3/31/2009 12/31/2008Circulating 2,117.9 2,188.9Loans and Financing 115.3 93.7Debentures 46.0 33.6Suppliers 550.0 486.2Taxes, Fees and Contributions 145.5 230.5Dividends to pay 499.6 499.6
Provisions 174.6 184.0Others 586.8 661.3
Non Circulating 4,431.1 4,469.4Long-Term Liabilities 4,431.1 4,469.4Loans and Financing 1,024.1 1,046.6Debentures 920.9 945.5Provisions 1,010.2 998.5Others 1,475.8 1,478.8
Outcome of future performance 0.0 0.0
Net Assets 2,982.0 2,803.7Realized Joint Stock 2,225.8 2,225.8
Capital Reserve 32.4 22.5Legal Reserve 103.8 103.8Profits Retention 451.7 451.7Accumulated Profit/Loss of Exercise 168.3 0.0
0.0 0.0Total Liabilities 9,530.9 9,462.0
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EXHIBIT IV
Regulatory Assets and Liabilities
Light Figures
ATIVO REGULATRIO R$ MM31/3/2009 31/12/2008 31/3/2009 31/12/2008
Consumidores, Concessionrias e Permissionrias 52,5 68,0 - -Reajuste Tarifrio - TUSD (includo na tarifa) 52,5 68,0 - -
Despesas Pagas Antecipadamente 220,9 381,6 216,4 125,1CVA 146,1 222,2 216,4 125,1Outros Regulatrios 18,0 27,5 - -Parcela A 56,8 131,9 - -
Total 273,5 449,6 216,4 125,1
PASSIVO REGULAT RIO R$ MM
Passivos Regulatrios (105,9) (160,7) (1,3) (1,7)CVA (94,9) (143,9) (1,3) (1,7)Outros Regulatrios (11,0) (16,7) - -
Total (105,9) (160,7) (1,3) (1,7)
TOTAL 167,5 288,9 215,1 123,4
Curto Prazo Longo Prazo
OPERATING INDICATORS Mar-09 Mar-08 Var. %N of Consumers (thousands) 3,946 3,901 1.1%
N of Employees 3,725 3,773 -1.3%
Average distribution tariff - R$/MWh 414.4 393.3 5.4%
Average distribution tariff - R$/MWh (w/out taxes) 282.6 267.6 5.6%
Average energy purchase cost R$/MWh 106.9 101.0 5.8%
Generation Capacity (MW) 855 855 -
Assured Energy (MW) 537 537 -
Net Generation (GWh) 1,534 1,370 12.0%
Charge Factor 66.5% 66.1% -
Includes net energy purchase/sell in the spot market
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EXHIBIT V
According to CVM Rule 506, 1Q08 results are being presented again to
reflect the impacts of Law 11,638/07, for better comparison purposes with
1Q09 information. We are also presenting 1Q08 results with the
reclassification of the employee profit sharing program (PLR) after income
tax. The conciliation is as follows:
Light S.A. (R$ million)
Light SESA (R$ million)
Published Law 11.638/07 Pro Forma1Q08 Adjustment 1Q08
Operating Revenue 2,070.6 2,070.6
Deductions From The Revenue (754.9) (754.9)
Net Operating Revenue 1,315.7 1,315.7
Operating Expense (1,086.0) (0.9) (1,086.8)Operating Result 229.8 228.9
EBITDA 311.9 308.0
Financial ResultIncome 54.1 54.1Expenses (138.0) 2.0 (136.0)Total (84.0) (81.9)
Other Operational Revenues 16.8 16.8Other Operational Expenses 1.1 1.1
Result Before Taxes and Interest 163.7 164.8
IR/CS + Deferred (59.6) (0.4) (60.0)
PLR - Participations (7.9) (7.9)
Net Income 104.0 104.8
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Light S.A.
Report of independent auditors on special review ofthe Quarterly Financial Information (ITR)Quarter ended March 31, 2009
Published Law 11.638/07 Pro Forma
1Q08 Adjustment 1Q08
Operating Revenue 1,971.3 1,971.3
Deductions From The Revenue (737.4) (737.4)
Net Operating Revenue 1,233.9 1,233.9
Operating Expense (1,063.5) 1.6 (1,061.8)
Operating Result 170.5 172.1
Equity Pick - Up 11.7 11.7
EBITDA 246.1 244.7
Financial Result
Income 62.7 62.7
Expenses (148.2) 2.0 (146.2)
Total (85.5) (83.4)
Other Operational Revenues 16.8 16.8
Other Operational Expenses 1.1 1.1
Result Before Taxes and Interest 114.6 118.3
IR/CS + Deferred (34.3) (1.2) (35.5)
PLR - Participations (7.2) (7.2)
Net Income 73.1 75.5
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Review Report of Independent Auditors
To theBoard of Directors ofLight S.A.Rio de Janeiro - RJ
1. We have reviewed the accounting information included in Quarterly Financial Information
ITR of Light S.A. and the consolidated Quarterly Financial Information of this Company andits subsidiaries for the quarter ended March 31, 2009, comprising the balance sheet, thestatements of income, of changes in shareholders equity and of cash flow, the performance
report, and notes to the financial statements, prepared under the responsibility of the Companysmanagement.
2. Our review was performed in accordance with the review standards established by the
IBRACON - Brazilian Institute of Independent Auditors and the Federal Council of
Accountancy - CFC, which comprised, mainly: (a) inquiries and discussions with the persons
responsible for the Accounting, Financial and Operational areas of the Company and itssubsidiaries, as to the main criteria adopted in the preparation of the Quarterly FinancialInformation; and (b) reviewing information and subsequent events that have or may havematerial effects on the financial situation and operations of the Company and its subsidiaries.
3. Based on our review, we are not aware of any material changes that should be made to the
accounting information contained in the Quarterly Financial Information aforementioned for itto be in accordance with the accounting practices adopted in Brazil and the standards issued bythe Brazilian Securities and Exchange Commission CVM applicable to the preparation ofthe Quarterly Information.
4. As described in Note 2, as a result of the changes to the accounting practices adopted inBrazil in 2008, the statements of income and of cash flows for the first quarter ended March 31,2008, presented for comparison purposes, were adjusted and are being re-presented, as providedfor by NPC 12 Accounting Practices, Changes in Accounting Estimates and Error Correction,approved by CVM Resolution 506.
5. The financial statements of Fundao de Seguridade Social Braslight for the year ended
December 31, 2008, were examined by other independent auditors whose opinion, datedJanuary 29, 2009, includes an emphasis paragraph regarding the balance of R$130,941 thousandrelated to tax credits arising from the Entitys tax court case which was successful in obtaining afinal and non-appeasable decision, which, according to the Managements forecast, will allowthem to utilize these credits to offset taxes payable in future years. The future realization of thecredits is subject to the completion of the offset process with the Federal Tax Authority
(Secretaria da Receita Federal), which the Entity suspended in September 2005. If the Entitydoes not complete the offset process, they may eventually record a provision for this asset. Thisasset, which guarantees the Entitys actuarial reserves, was deducted from calculation of the
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subsidiaries actuarial deficit, as required by Resolution n 371/00 of the Brazilian Securitiesand Exchange Commission - CVM. Consequently, in the event that a provision is recorded forthis amount, Companys liability may be proportionally adjusted.
6. As mentioned in Note 32, due to the second periodical review of tariffs of subsidiary theLight Servios de Eletricidade S.A. as set forth in the concession agreement, the NationalRegulatory Electricity Agency - ANEEL temporarily ratified the subsidiarys tariffrepositioning on 1.96%, to be applied during the period beginning November 7, 2008.Considering the 2.30% interest on sales, the tariffs impact reaches 4.27%. Additional changesthat may result from the final review, if any, will be reflected in the equity and financial positionof the Company and its subsidiary in the following periods.
May 08, 2009
KPMG Auditores IndependentesCRC SP 14428/O-6- F -RJ
Vnia Andrade de SouzaAccountant -CRC-RJ 057.497-O-2
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
Notes 3/31/2009 12/31/2008 3/31/2009 12/31/2008
CURRENT
Cash and Cash Equivalents 4 3,327 40,256 736,273 590,126
Consumers, concessionaires and permissionaires 5 - - 1,495,599 1,350,832
Recoverable Taxes 6 633 284 706,820 836,504
Inventories - - 19,877 18,603
Receivables from swap transactions 29 - - 6,302 6,671Dividends receivable 21 499,638 499,638 - -
Services - - 68,291 57,500
Prepaid expenses 7 91 135 224,772 383,291
Other receivables 8 182 167 74,165 107,879
503,871 540,480 3,332,099 3,351,406
NON-CURRENT ASSETS 2,979,189 2,764,479 6,198,796 6,110,559
LONG-TERM ASSETS
Consumers, concessionaires and permissionaires 5 - - 297,458 292,594
Recoverable Taxes 6 - - 1,080,068 1,109,566
Receivables from swap transactions 29 - - 4,189 4,413
Escrow deposits 121 121 196,587 194,200
Prepaid expenses 7 - - 220,019 129,435
Other receivables 8 - - 7,870 26,420
121 121 1,806,191 1,756,628
Investments 9 2,979,068 2,764,358 18,640 13,615
Property, Plant and Equipment 10 - - 4,097,180 4,059,358
Intangible assets 11 - - 276,785 280,958
Deferred charges - - -
3,483,060 3,304,959 9,530,895 9,461,965
ASSETS
Parent Company Consolidated
LIGHT S.A.
BALANCE SHEETS ON MARCH 31, 2009
(In thousands of reais)
1
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
Notes 3/31/2009 12/31/2008 3/31/2009 12/31/2008
CURRENT
Suppliers 12 167 283 550,002 486,204
Payroll 4 7 1,845 2,791
Taxes 6 5 10 145,489 230,461
Loans, financing and financial charges 13 - - 152,020 116,799
Debentures and financial charges 14 - - 69,413 61,523
Dividends Payable 21 499,638 499,638 499,638 499,638
Estimated Liabilities 26 31 63,634 55,052
Regulatory charges consumer contributions 15 - - 108,727 126,733
Provision for contingencies 16 - - 2,237 2,237
Pension plan and other employee benefits 18 - - 93,780 87,744
Other Liabilities 17 1,251 1,286 431,081 519,757
501,091 501,255 2,117,866 2,188,939
NON-CURRENT LIABILITIES - - 4,431,060 4,469,322
LONG-TERM LIABILITIES
Suppliers 12 - - - -
Loans, financing and financial charges 13 - - 1,024,129 1,046,550
Debentures and financial charges 14 - - 920,911 945,549
Taxes 6 - - 327,842 324,743
Provision for contingencies 16 - - 1,010,231 998,460
Pension plan and other employee benefits 18 - - 924,219 944,417
Other Liabilities 17 - - 223,728 209,603
- - 4,431,060 4,469,322
DEFERRED INCOME - - - -
SHAREHOLDERS' EQUITY
Capital stock 20 2,225,819 2,225,819 2,225,819 2,225,819
Profits Reserve 20 555,426 555,426 555,426 555,426
Recognized Granted Options 33 32,436 22,459 32,436 22,459
Retained earnings (accumulated losses) 168,288 - 168,288 -
2,981,969 2,803,704 2,981,969 2,803,704
3,483,060 3,304,959 9,530,895 9,461,965
Parent Company Consolidated
BALANCE SHEETS ON MARCH 31, 2009
LIGHT S.A.
(In thousands of reais)
LIABILITIES
2
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
Parent Company Parent Company Consolidated Consolidated
Notes 1/1/09 to 3/31/09 1/1/08 to 3/31/08 1/1/09 to 3/31/09 1/1/08 to 3/31/08
OPERATING INCOME
Electric Power Supply 22 - - 2,101,390 1,821,474
Electric Power Supply 22 - - 84,151 104,626
Other Revenues 23 - - 140,094 144,530
- - 2,325,635 2,070,630
Deductions from operating revenues
ICMS - - (567,548) (503,528)
Consumer Charges 24 - - (191,230) (119,031)
PIS/COFINS - - (128,041) (131,198)
Other - - (1,264) (1,127)
- - (888,083) (754,884)
NET OPERATING REVENUE - - 1,437,552 1,315,746
ELECTRIC POWER COST
Electric Power Purchased for Resale 27 - - (871,993) (785,182)
- - (871,993) (785,182)
OPERATIONAL COST
Personnel 26 - - (32,589) (34,099)Material 26 - - (3,667) (3,206)
Outsourced services 26 - - (25,455) (27,146)
Allowances 26 - - - -
Depreciation and amortization 26 - - (67,410) (69,442)
Other 26 - - (4,699) (4,156)
- - (133,820) (138,049)
GROSS OPERATING PROFIT - 431,739 392,515-
OPERATING EXPENSES
Selling 26 - - (77,433) (78,474)
General and administrative 26 (10,841) (1,028) (81,094) (85,142)
(10,841) (1,028) (158,527) (163,616)
EQUITY ACCOUNTING 178,322 105,770 - -
FINANCIAL REVENUES (EXPENSES)
Revenues 28 835 61 46,269 54,058
Expenses 28 (23) (1) (71,021) (135,998)
812 60 (24,752) (81,940)
OTHER OPERATING REVENUES (EXPENSES)
Revenues - - 6,114 19,349
Expenses - - (833) (1,473)
- - 5,281 17,876
OPERATING INCOME 168,293 104,802 253,741 164,835
Non-operating income - - - -
Non-operating expenses - - - -
NON-OPERATING INCOME - - - -
INCOME BEFORE TAXES
AND INTEREST 168,293 104,802 253,741 164,835
Income tax and social contribution 6 - - (78,245) (52,174)
PROFIT/(LOSS) BEFORE INTEREST 168,293 104,802 175,496 112,661
Interest (5) (6) (7,208) (7,865)
INCOME/(LOSS) FOR THE YEAR 168,288 104,796 168,288 104,796
Income/(Loss) per share - R$ 0.82521 0.51506 0.82521 0.51506
No. of shares 203,933,778 203,462,739 203,933,778 203,462,739
(In thousands of reais)
LIGHT S.A.
STATEMENT OF INCOME FOR THE PERIOD ENDED MARCH 31, 2009 AND 2008
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
RETAINED EARNIGNS
CAPITAL CAPITAL LEGAL RETAINED (ACCUMULATED TOTAL
STOCK RESERVES RESERVE PROFITS LOSSES)
BALANCE ON DECEMBER 31, 2008 2,225,819 22,459 103,757 451,669 - 2,803,704
Capital increase - - - - - -
Granted options - 9,977 - - - 9,977
Net income for the period - - - - 168,288 168,288
BALANCE ON MARCH 31, 2009 2,225,819 32,436 103,757 451,669 168,288 2,981,969
PROFITS RESERVE
LIGHT - S.A.
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY - PARENT COMPANY
(In thousands of reais)
4
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
1/1/2009 to 3/31/2009 1/1/2008 to 3/31/2008 1/1/2009 to 3/31/2009 1/1/2008 to 3/31/2008
From operations
Income/(loss) for the year 168,288 104,796 168,288 104,796
Revenues (expenses) not affecting cash:
Allowance for doubtful accounts - - 59,930 57,874
Provision for (reversal of) losses in the recovery of long-term RTE - - - 2,385
Restatement of regulatory and contingent assets and liabilities - - 22,478 14,802
Adjustment of receivables to present value - - (5,800) 106
Depreciation and amortization - - 76,342 79,053
Interests and monetary variations - net - - 42,850 53,104
Equity accounting ( 178 ,32 2) (10 5, 770) - -
Income/loss from write-off of property, plant and equipment - - (5,172) (17,856)
Deferred income tax and social contribution - - 44,620 (10,839)
Charges and monetary variation on post-employment benefits - - 9,192 38,797
Provision for liabilities - contingent - - 5,146 15,870
Granted options 9,977 - 9,977 -
Other - - (236) 3 ,940
(57 ) (974) 427 ,615 342 ,032
(Increase) Reduction in assets
Consumers and resellers - 22 (206,020) (18,947)
Recoverable Taxes (34 9) (16 ) 1 16 ,5 86 1 69 ,6 77
Services - - (10,791) (12,674)
Inventories - - (1,274) (4,671)
Prepaid Expenses (CVA and other) 44 59 (1,416) (604)
Regulatory assets (CVA and Bolhas) - - 73,337 20,517
Dividends received - 203,463 - -
Escrow deposits - - (2,387) (2,052)
Other (15) 16 52,857 (14,909)
(320) 203,544 20,892 136,337
Increase (Reduction) in liabilities
Suppliers (11 6) (47 ) 1 0,92 3 (38 ,4 12 )
Electric power suppliers - - 52,875 14,130
Salaries and social contributions (8) ( 3) 7,635 8, 280
Taxes and Social Contributions (5) ( 2) (88, 245) (128, 638)
Offsetting accounts - CVA - - (55,082) (44,104)
Regulatory fees - - (22,843) (7,431)
Contingencies - - (14,843) (12,687)
Post-employment benefits - - (23,354) (20,044)
Other (35 ) 2 6 (17 ,0 14 ) 1 0,78 1
(16 4) ( 26) (1 49, 948 ) ( 21 8, 125 )
Cash generated by (used in) operations (541) 202,544 298,559 260,244
Investment activities
Disposal of income property - - 5,697 1,619
Investments in property, plant and equipment - - (112,444) (92,141)
Corporate interest (36,388) (130) - -
Consumer contributions - - 1,849 147
Cash used in investment activities (36 ,388 ) (130) (104,898) (90 ,375 )
Financing activities
Paid dividends - (203,463) - (203,463)
Loans and financings - - 22,674 -
Amortization of loans and financings - - (70,188) (62,327)
Net cash generated by (used in) financing activities - (203,463) (47,514) (265,790)
Net cash variation (36,929) (1,049) 146,147 (95,921)
Statement of net cash variation
At the beginning of the year 40,256 2,536 590,126 490,211
At the end of the year 3,327 1,487 736,273 394,290
Cash variation (36,929) (1,049) 146,147 (95,921)
Parent Company Consolidated
LIGHT - S.A.
CASH FLOW STATEMENTS
(In thousands of reais)
5
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
TABLE OF CONTENTS
1. OPERATIONS2. PRESENTATION OF THE QUARTERLY INFORMATION3. REGULATORY ASSETS AND LIABILITIES4. CASH AND CASH EQUIVALENTS5. CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS)6. TAXES7. PREPAID EXPENSES
8. OTHER RECEIVABLES9. INVESTMENTS10. PROPERTY, PLANT AND EQUIPMENT11. INTANGIBLE ASSETS12. SUPPLIERS13. LOANS, FINANCING AND FINANCIAL CHARGES14. DEBENTURES AND FINANCIAL CHARGES15. REGULATORY CHARGES CONSUMER CONTRIBUTIONS16. PROVISION FOR CONTINGENCIES17. OTHER PAYABLES18. PENSION PLAN AND OTHER EMPLOYEE BENEFITS19. RELATED-PARTY TRANSACTIONS20. SHAREHOLDERS EQUITY
21. DIVIDENDS22. ELECTRIC POWER SUPPLY23. OTHER REVENUE24. CONSUMER CHARGES (OPERATING REVENUE DEDUCTIONS)25. ELECTRIC POWER PURCHASE AND SALE TRANSACTIONS THROUGH CCEE26. OPERATING COSTS AND EXPENSES27. ELECTRICITY PURCHASED FOR RESALE28. FINANCIAL INCOME29. FINANCIAL INSTRUMENTS30. INSURANCE31. STATEMENT OF OPERATIONS BY COMPANY32. TARIFF REVIEW33. LONG-TERM INCENTIVE PLAN
34. SUBSEQUENT EVENTS
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE QUARTERLY INFORMATIONAS OF MARCH 31, 2009(Amounts in thousands of Brazilian reais)
OPERATIONS
Light S.A.s corporate purpose is to hold equity interests in other companies, as partner orshareholder, and in the direct or indirect exploitation, as applicable, of electric power services,including electric power generation, transmission, sale and distribution systems, as well as otherrelated services.
Light S.A. is a parent company of the following companies:
Light Servios de Eletricidade S.A. (Light SESA) - Publicly-held company engaged in thedistribution of electric power;
Light Energia S.A. - (Light Energia) Closely-held company whose main activity is study,plan, construct, operate and exploit electric power generation, transmission and sales, systemsand related services;
Light Esco Prestao de Servios Ltda. - (Light Esco) Company whose main activity is to
provide services related to co-generation, projects, management and solutions, such asimproving efficiency and defining energy matrixes and sale of energy on the free market.
Itaocara Energia Ltda. - (Itaocara Energia) Pre-operating company, primarily engaged in theexploitation and production of electric power;
Lightger Ltda. (Light Ger) and Lighthidro Ltda. (Light Hidro) Pre-operating companies bothto participate in auctions for concession, authorization and permission for new plants. OnDecember 24, 2008, Light Ger obtained the installation license that authorizes the start ofimplementation works of Paracambi small hydroelectric power plant (PCH); and
Instituto Light para o Desenvolvimento Urbano e Social (Light Institute) It is engaged in
participating in social and cultural projects, has interest in the cities economic and socialdevelopment, affirming the Companys ability to be socially responsible.
Grupo Lights concessions and authorizations:
Concessions / authorizationsDate of concession /authorization Maturity Date
Generation, Transmission and Distribution (direct) July 1996 June 2026Paracambi small hydroelectric power plant (PCH)(indirect)
February 2001 February 2031
Itaocara hydroelectric power plant (indirect) March 2001 March 2036
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
PRESENTATION OF THE QUARTERLY INFORMATION
The individual and consolidated quarterly information including the notes thereto, are presentedin thousands of reais and other currencies, except when otherwise indicated and were preparedin accordance with the accounting practices adopted in Brazil, which comprises the BrazilianCorporation Law, Pronouncements and Guidance issued by the Brazilian Committee onAccounting Pronouncements (CPC), rules issued by the Brazilian Securities and ExchangeCommission (CVM), and standards established by Brazilian Eletricity Regulatory Agency(ANEEL), pursuant to Accounting Manual for the Electric Power Public Utility, having fullymet all concepts introduced by Law nr. 11,638/07 and Provisional Measure nr. 449/08.
This quarterly information - ITR was prepared according to the principles, practices and criteriaconsistent with those adopted in the preparation of the annual financial statements as ofDecember 31, 2008, published in official newspaper on March 3, 2009. Thus, this quarterlyinformation should be read jointly with said annual financial statements.
Given that the Company is comprised primarily of interests in other corporations, the notes tothe quarterly information primarily reflect the accounting practices and breakdown of itssubsidiaries accounts.
The consolidated Quarterly Information was prepared pursuant to CVM Rule 247, of March 27,1996, which provides, among other subjects, procedures to prepare and disclose of consolidated
financial statements and in line with the accounting practices adopted in the previous year.
The Quarterly Information as of March 31, 2008 was reclassified, when applicable, forcomparison purposes, as described below:
Publi shed Rec lass ifica tion PLR
Adjustments Law
11638/07 and MP 449/08 Adjusted
Cost of goods and/or services sold
Personnel (39,054) 4,955 - (34,099)
Depreciation and amortization (72,536) - 3,094 (69,442)
Operating expenses/revenues
Selling expenses (79,025) 551 - (78,474)
General and administrative expenses (83,541) 2,359 (3,960) (85,142)Financial expenses (138,018) - 2,020 (135,998)
Other operating revenue - - 19,349 19,349
Other operating expenses - - (1,473) (1,473)
Non-ope rating revenue
Revenues 19,349 - (19,349) -
Expenses (1,473) - 1,473 -
Deferred income tax 11,231 - (392) 10,839
Interest/Statutory Contributions
Interest - (7,865) - (7,865)
(i) For most appropriate presentation, management and employee profit sharing wereclassified as profit sharing result under income tax.
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
(ii) In the preparation of the financial statements for year ended December 31, 2008, theCompany and its subsidiaries adopted for the first time the changes in corporate legislationintroduced by Law 11,638/07 and Provisional Measure 449/08. The quarterly information as ofMarch 31, 2008, presented herein, was also adjusted to reflect changes resulting from theadoption of Law 11,638/07 and CPCs issued in 2008, for the comparison of the quartersresults, reconciliated as follows:
Parent Company Consolidated
Net income for the quarter without the effects of Law 11638/07 and Provisional Measure 449/08 (published) 104,034 104,034
Adjustments to the effects resulting from initial adoption of Law 11638/07 and Provisional Measure 449/08:
Adjustments to present value - Receivables - 2,020
Deferred charges - (866)Equity accounting 762 -
Temporary differences of income tax and social contribution - (392)
Net income for the quarter pursuant to Law 11638/07 and Provisional Measure 449/08 (adjusted) 104,796 104,796
3/31/2008
1. REGULATORY ASSETS AND LIABILITIES
3/31/2009 12/31/2008 3/31/2009 12/31/2008
Assets
Consumers, Concessionaries and Permissionaires (note 5) 52,507 67,977 - -
Tariff Readjustment - TUSD 52,507 67,977 - -
Prepaid Expenses (Note 7) 220,946 381,624 216,399 125,071
Portion "A" - (a) 56,837 131,910 - -
CVA - (b) 146,061 222,245 216,399 125,071
Other Regulatories - (c) 18,048 27,469 - -
TOTAL ASSETS 273,453 449,601 216,399 125,071
Other Payables (note 17) (105,937) (160,661) (1,343) (1,719)
CVA - (b) (94,901) (143,947) (1,343) (1,719)
Other Regulatories (c) (11,036) (16,714) - -
TOTAL LIABILITIES (105,937) (160,661) (1,343) (1,719)
167,516 288,940 215,056 123,352
Consolidated
Current Non-current
a) Rationing:
The electric power distribution and generation companies revenues (free energy) for therationing period is being recovered through the Extraordinary Tariff Recovery - RTE, whichagreement only allowed for the billing related to revenue lost of Light SESA through February2008. In June 2008, Light SESA wrote off the items related to the extraordinary tariff recovery,free energy and its respective provisions, without affecting the income.
Due to the maturity of term for the RTE billing (Loss of Revenue), the Variation in Portion Aitems (from January 1, 2001 to October 25, 2001) started to be recovered from March 2008 untilthe time necessary for the amount approved by ANEEL has been fully recovered pursuant toDirective Release nr. 267/04:
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
Recognition: Total Amortized
Resolutions No. Accumulated Accumulated Value Balance to
ASSETS 482/02 and 001/04 Remuneration 2009 up to 2009 Amortize
(1) (2) (3) = (1+2) (4) (5) = (3-4)
Portion A (from 01/01/2001 to 10/25/2001) 125,695 247,299 372,994 316,157 56,837
b) Memorandum account for Portion A Items Variation (CVA)
Records the variations during the period and the annual tariff adjustment based on the CentralBank overnight rate (SELIC) for: purchase of energy; the tariff for transportation of electric
power from Itaipu; the Fuel Usage Quota (CCC); the Economic Development Account
(CDE); System service charges (ESS); the tariff for the use of transmission facilities of thebasic electric network; and compensation for the use of water resources (CFURH).
The amounts recorded under current (assets and liabilities) refer to amounts already approvedby ANEEL in November 2008, when the tariff review was concluded. The amounts recordedunder non-current represent the formation of CVA to be approved in the next tariff adjustment.
Breakdown of CVA
3/31/2009 12/31/2008 3/31/2009 12/31/2008
Breakdown - CVA
Fuel Usage Quota - CCC 92,849 141,650 20,525 31,871
Transportation of electric power to basic electric network 3,173 4,830 4,282 2,756
PROINFA - - 8,680 -
Cost of electricity acquisition - - 164,251 75,419
System Service Charges - ESS 48,308 73,145 17,812 14,200
Transportation of electric power from Itaipu 1,731 2,620 849 825
TOTAL - CVA 146,061 222,245 216,399 125,071
3/31/2009 12/31/2008 3/31/2009 12/31/2008
Breakdown - CVA
Energy Development Account - CDE (20,230) (30,863) (1,343) (1,664)
PROINFA (2,065) (3,150) - (55)
Cost of electricity acquisition (72,606) (109,934) - -
TOTAL - CVA (94,901) (143,947) (1,343) (1,719)
Current Non-current
Consolidated
Assets
Non-current
Consolidated
Current
Liabilities
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
c) Other Regulatory Assets/Liabilities
Finance costs transferred in the second tariff review of subsidiary Light SESA in accordancewith Normative Resolution nr. 734 of November 4, 2008, as per chart below:
Approved Values
3/31/2009 12/31/2008 10/31/2008
Other Regulatory Assets
Financial Adjustment TUSD Generating Companies 17,760 27,033 32,680
Guarantees at Auction (CCEAR) 74 113 136
Furnas Connection 115 174 210
"Luz para Todos" Program 99 149 181TOTAL 18,048 27,469 33,207
Approved Values
3/31/2009 12/31/2008 10/31/2008
Other Regulatory Liabilities
Onlending of energy overcontracting (art.38 of Decree 5,163/04) (10,393) (15,737) (18,956)
Boundary Adjustment (643) (977) (1,182)
TOTAL (11,036) (16,714) (20,138)
Consolidated
Consolidated
CASH AND CASH EQUIVALENTS
3/31/2009 12/31/2008 3/31/2009 12/31/2008
Cash available 47 50 13,246 41,029
Temporary cash investments 3,280 40,206 723,027 549,097
Total 3,327 40,256 736,273 590,126
3/31/2009 12/31/2008 3/31/2009 12/31/2008
Financial Investments: Fee Maturity Date
Overnight (subsidiaries LIR and LOI) - Daily - - 984 992
CDB CDI Daily 3,280 40,206 722,043 547,919
Other CDI Daily - - - 186
Total 3,280 40,206 723,027 549,097
Parent Company Consolidated
Parent Company Consolidated
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A free translation of the original in Portuguese)
FEDERAL PUBLIC SERVICE
BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM)
STANDARDIZED FINANCIAL STATEMENTS (DFP)
COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES
March 31, 2009 Brazilian Corporation Law
01987-9 LIGHT S.A. 03.378.521/0001-75
11.01 NOTES TO THE FINANCIAL STATEMENTS
RECEIVABLES FROM CONSUMERS, CONCESSIONAIRES AND
PERMISSIONAIRIES (CLIENTS)
3/31/2009 12/31/2008
CURRENT
Billed Sales 1,710,218 1,729,885
Unbilled Sales 289,296 260,361
Debts payment by installments (a) 153,435 140,874
2,152,949 2,1
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