LIGHT S.A. - 05/16/2011
Press Release 3Q10
Release Segmentation
Light S.A. is a holding company that controls wholly-owned subsidiaries
pertaining to three business segments: electricity distribution (Light SESA),
electricity generation (Light Energia) and electricity commercialization/services
(Light Esco and Lightcom).
Operating Performance
Distribution
Total energy consumption in Light SESA’s concession area (captive customers +
transport of free customers1) came to 5,144 GWh
in 3Q10, a 3.1% year-on-year increase, largely
Electric Energy Consumption (GWh)
Total Market (Captive + Free)
3.1%
driven by the substantial upturn in free market
4,989
consumption due to overall economic growth
607
5,144
764
25.9%
besides the migration of captive-market clients to
4,383
the free market.
In
the
first
4,379
-0.1%
nine
months,
total
energy
consumption came to 16,728 GWh, 6.0% higher
3Q09
3Q10
Captive
Free
than in the same period of 2009, fueled by both the free and captive markets,
which recorded respective growth of 22.2% and 4.0%.
If the consumption of the free clients CSN, Valesul and CSA is taken into account,
total billed consumption came to 5,751 GWh² in 3Q10 and 18,207 GWh in 9M10.
To preserve comparability with the market approved by Aneel in the tariff adjustment process, the
billed energy of free consumers Valesul, CSN and CSA was excluded, in view of these customers’
planned migration to the core network. Energy consumption by these clients totaled 607 GWh in 3Q10
and 411 GWh in 3Q09.
1
1
Captive Market
Captive market billed consumption in 3Q10 remained flat over 3Q09, due to the
0.9% upturn in the residential segment and the 3.4% increase by the “other”
category
(government, public services and rural), offset by the 9.6% decline in
industrial consumption.
The average temperature
Electric Energy Consumption (GWh)
Captive Market
in the third quarter of
-0.1%
4,383
2010 was -0.6ºC below
the average for the same
period in 2009. Despite
-0.1%
1,761
residential
3.4%
1,778
-9.6%
458
that, there was increase
in
4,379
0.9%
Residential
1,388
1,386
776
414
Industrial
Commercial
3Q09
802
Others
Total
3Q10
consumption, that is still
impacted by the improved economic conditions in Light’s concession area, in turn
reflecting higher income, the expanded client base and easier access to home
appliances, while the decline in industrial consumption reflects the migration of
captive-market clients to the free market between the two periods.
Residential consumption accounted for 40.6% of the captive market in 3Q10. The
number of billed residential clients grew by 0.9%, totaling 3.74 million in
September 2010, with an average monthly consumption of 158.7 kWh, compared
to 159.9 kWh in the same period last year.
The commercial segment, which consumed 1,386 GWh, represented 31.7% of
captive market consumption in 3Q10, virtually flat over 3Q09. The performance of
this segment was also affected by migrations to the free market between the two
periods; if these were excluded, commercial consumption growth would have come
to 3.2%.
Industrial clients, who made up 9.4% of the captive market, consumed 414 GWh,
9.6% down on 3Q09, also mainly due to interim migrations to the free market.
Excluding these, growth came to 9.9%, underlining the industrial segment’s
recovery. One client with average monthly consumption of 2 GWh in the period
migrated to the free market.
The other categories, which accounted for 18.3% of the captive market, posted
growth of 3.4% in relation to 3Q09.
The rural, government and public service
categories, which represented 0.3%, 7.4% and 6.2% of the captive market,
respectively, all recorded positive performances.
2
Year-to-date captive market consumption totaled 14,564 GWh, 4.0% higher than in
9M09, mainly due to the excellent performance of the residential segment, which
recorded year-on-year growth of 6.9%, followed by the commercial segment, with
growth of 3.3%. Despite lower temperature, which was 0.3ºC below the same
period last year, consumption growth is once again underlining economic growth in
Light’s concession area.
Network Usage
Electric Energy Transportation - GWh
Free Customers + Concessionaires
Billed energy transported to free customers 3 and
10.3%
1,510
1,369
25.9%
764
-2.2%
762
607
concessionaires totaled 1,510 GWh in 3Q10,
10.3% up year-on-year. The substantial 25.9%
upturn in billed energy transported to free
clients can be explained by the recovery in the
746
activities of major industrial consumers and the
migrations of captive-market clients to the free
Free
Concessionaires
3Q09
3Q10
Total
market. If these migrations had been excluded,
billed energy transported to free clients would have increased by 2.2%. The flow of
energy to concessionaires bordering Light’s area fell by 2.2% between the periods
due to dispatch by the National Electric System Operator (ONS). In 9M10, network
usage totaled 4,509 GWh, 22.1% up year-on-year.
3
To preserve comparability with the market approved by Aneel in the tariff adjustment process, the
billed energy of free consumers Valesul, CSN and CSA was excluded, in view of these customers’
planned migration to the core network. Energy consumption by these clients totaled 607 GWh in 3Q10
and 411 GWh in 3Q09.
3
DISTRIBUTION ENERGETIC BALANCE - GWh
Position: January - September 2010
PROINFA
Residential
6,185.5
369.5
CCEAR
Light Energia
229.2
ITAIPU
(CCEE)
4,048.4
Billed
Energy
14,564.0
Own load
Light
19,985.7
Commercial
4,593.2
Required E.
(CCEE)
20,359.9
AUCTIONS
(CCEE)
10,577.4
NORTE FLU
(CCEE)
4,750.9
Losses +
Non Billed
Energy
5,421.7
Basic netw.
losses
Adjustment
Industrial
1,286.0
Others
2,499.3
377.2
(3.0)
OTHERS(*)
(CCEE)
384.5
(*) Others = Purchase in Spot - Sale in Spot.
Energy Balance (GWh)
= Grid Load
- Energy transported to utilities
- Energy transported to free customers*
= Own Load
- Captive market consumption
Low Voltage Market
Medium Voltage Market
- Losses + Non Billed Energy
3Q10
8,216
746
1,390
6,079
4,379
2,791
1,589
1,700
3Q09
7,881
762
1,054
6,065
4,383
2,737
1,645
1,682
Var.%
4.3%
-2.2%
32.0%
0.2%
-0.1%
1.9%
-3.4%
1.1%
9M10
26,048
2,345
3,717
19,986
14,564
9,446
5,118
5,422
9M09
24,237
1,921
3,033
19,283
14,004
8,886
5,118
5,279
Var.%
7.5%
22.1%
22.5%
3.6%
4.0%
6.3%
0.0%
2.7%
*Including CSN, Valesul and CSA
4
Energy Losses
Light SESA’s total energy losses amounted to
21.48%
15.22%
15.40%
15.56%
15.39%
15.18%
7,544
21.70%
7,549
As of November 2009, non-technical losses
21.98%
7,504
down on the close-of-June ratio.
21.82%
7,269
12 months ended September 2010, 22 bps
21.50%
7,005
7,544 GWh, or 21.48% of the grid load, in the
Light Losses Evolution
12 months
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
began to be disclosed for billed energy in the
Losses (GWh)
Losses / Grid Load %
Non-technical losses % Grid Load
low-voltage market in compliance with the
change mandated by ANEEL in its definitive tariff adjustment approved October,
2009. This change is more in line with the
concessionaire’s operations since it is precisely
in the 12 months through September 2010,
representing 42.1% of the low-voltage market
42.4%
42.1%
5,330
42.7%
5,352
42.5%
5,313
non-technical losses, which totaled 5,330 GWh
42.3%
5,149
losses are found. Following this methodology,
4,958
in the low-voltage market where non-technical
Non tecnical losses / Low Voltage market
12 months
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Non Tecnincal Losses (GW)
Non tecnical Losses % Low Voltage Mkt
(15.18% of the grid load), fell by 3 bps over the losses in 2Q10.
Conventional energy recovery processes, such as the negotiation of amounts owed
by customers where fraud has been detected, resulted in the recovery of 125.5
GWh in 9M10, 11.5% higher than in the same
Recovered Energy (GW)
period last year. In the same period, fraud
regularization
programs
yielded
a
total
of
125.5
11.5%
112.5
65,553 normalized clients, 2.5% down year-onyear.
Conventional
energy
recovery
initiatives
remained intensive this quarter in order to
9M09
9M10
catch up following the delays in the loss prevention program caused by outages
during the summer. In addition to conventional actions, there was further progress
in
regard
to
new
technologies,
with
the
reinstallation of electronic meters certified by
Inmetro. By the close of September, nearly
35,000
meters had
been
Normalized Costumers
67,220
reinstalled, with
65,553
-2.5%
billing through remote electronic metering. In
terms of network protection, nearly 75,000
clients were covered by September, the target
being to surpass 100,000 by year-end.
9M09
9M10
5
Collection
The 3Q10 collection rate stood at 99.2% of the
billed total, 50 bps down on 3Q09, but still very
Colletion rate
R$ MM
Billing
Collection
Collection Tax
3Q10
1,944
1,929
99.2%
3Q09
1,797
1,792
99.7%
9M10
6,359
6,276
98.7%
9M09
5,960
5,830
97.8%
close to the 100% mark. It is worth noting that collection in the retail segment
increased from 93.8% in 3Q09 to 95.9% in
Collection Rate per Segment
3Q10. Major and government clients continued
(Quarter)
to record collection rates of more than 100%.
93.8%
The collection rate for the past 12 months was
98.0% of total billed consumption, 80 bps
95.9%
Retail
above September 2009 and 10 bps below June
104.4%
100.1%
Large Customers
3Q09
111.9%
109.9%
Public Sector
3Q10
2010.
In 3Q10, Provisions for Past Due Accounts (PPD) totaled R$66.7 million,
representing 3.8% of gross billed energy. Given that, according to the sector’s
provisioning criteria, provisions related to past due
Collection rate
12 months moving average
bills of residential and commercial clients are
98.5%
constituted 90 and 180 days after the due date,
respectively, this result can be explained by the
97.2%
97.3%
sep/09
dec/10
98.1%
98.0%
jun/10
sep/10
following factors: (i) the reduction in the number of
disconnections
outsourced
due
to
companies,
the
causing
replacement
delays
in
of
the
execution of the services; (ii) substantial billed
energy in the previous quarter, which impacted the
provisioning of higher bills in 3Q10; (iii) higher
mar/10
PDD/Gross Revenue (Billed Sales)
3.4%
3.8%
3.8%
2Q10
3Q10
billed energy growth in the retail segment, which
has a lower collection rate.
3Q09
Provisions for Past Due Accounts
R$ Million 3Q10 3Q09 Var
9M10 9M09 Var
PDD
66.7 57.9 15.1% 205.5 184.3 11.5%
6
Operating Quality
Ensuring high levels of quality in the supply of electricity is an essential
part of establishing good relations between the distribution company and its clients.
The problems it faced last summer led Light to further intensify its distribution
improvement investment plan. In 9M10, the Company invested R$146.0 million in
efforts to improve the quality of its electricity supply business and to increase the
capacity of its distribution network, 46.2% more than the R$99.8 million invested in
the same period last year. Among these improvements, it is particularly worth
drawing attention to the replacement of 309 km of conventional cable with space
cable (medium and low-voltage compact network), versus only 126 km in 3Q09.
At the end of September, the equivalent length of interruption indicator
(DEC), expressed in hours, registered 11.82 hours for the last 12 months, while the
equivalent frequency of interruption indicator (FEC), expressed in occurrences,
stood at 6.27 times.
The adverse weather conditions through September 2010 jeopardized the
performance of the electricity system, with heavy rainfall and higher-than-normal
summer temperatures resulting in strong load growth. In addition, the renewal of
agreements with outsourced maintenance and emergency service providers, which
took place in 3Q10, caused delays in these procedures, negatively impacting
network
performance.
Most
of
the
outages
occurred
in
areas
served
by
underground networks, which are more complex and therefore take longer to
repair, thereby increasing the DEC.
Preventive maintenance procedures for the underground system are
currently under way, with intensified inspections of transformer vaults and
manholes, as well as the installation of tele-supervision in 400 underground
transformer vaults, 50 of which were so-equipped by September.
In addition, the Leblon and Copacabana underground systems are being
expanded and improved, absorbing investments of around R$4 million. Conclusion
is scheduled for December 2010.
ELC / EFC - 12 Months
ELC
8.96
11.50
11.82
7.06
5.75
6.27
EFC
sep/10*
sep/09
sep/08
7
ELC – Equivalent Length of Interruption per Consumption Unit (hs)
EFC – Equivalent Frequency of Interruption per Consumption Unit (n.)
*Does not consider the effects of 11/10/2009 occurrence in the national interconected system.
Generation
Energy sold on the captive market (ACR) totaled 1,035.8 GWh in 3Q10, in line with
the 3Q09 figure, while energy sold on the free market (ACL) amounted to 154.3
GWh, up by 30.0%. The 89.8% year-on-year reduction in spot market sales volume
in 3Q10 was primarily caused by two factors: (i) the reduction in hydroelectric
generation in the National Interconnected System, which generated less secondary
energy for settlement in the CCEE; and (ii) the upturn in energy sales on the free
market.
In 9M10 sales totaled 4,322.3 GWh, 17.2% up year-on-year, driven by the increase
in first-half spot market sales, due to the higher hydroelectric generation in the
National Interconnected System, which generated more secondary energy for
settlement in the CCEE, and to CCEE’s booking procedures, which failed to deduct
LIGHT ENERGIA (GWh)
3Q10
3Q09
%
9M10
9M09
%
Regulated Contracting Environment Sales
1,035.8
1,035.1
0.1%
3,087.5
3,088.3
0.0%
154.3
118.7
30.0%
342.9
325.0
5.5%
10.7
105.4
-89.8%
891.8
276.2
222.9%
1,200.8
1,259.2
-4.6%
4,322.3
Free Contracting Environment Sales
Spot Sales (CCEE)
Total
3,689.5 17.2%
the energy consumed by pumps in 1H10, totaling around 394.3 GWh.
Commercialization and Services
In 3Q10, direct energy sales totaled 399.6 GWh, 176.5% up on 3Q09, reflecting the
quarter’s new long and short-term operations. The sales contract portfolio was also
expanded to include new companies, e.g. Schincariol and TRW. Commercialization
activity involved a total of 97 clients, versus 51 in 3Q09.
In addition to direct sales, Light Esco also continued to provide consulting services
and represent free customers before the CCEE (broker). These activities involved 9
clients and operations totaling 736.2 GWh in 3Q10, 167.6% more than in the same
period last year.
Light Esco’s 13 ongoing service contracts included two new projects this quarter: (i)
the implementation of a cooling system for the 1a Igreja Batista de Trindade; and
8
(ii) adjustments to Santa Casa de Misericórdia de Barra Mansa’s medium-voltage
network and metering system.
In 9M10, Light Esco traded 2,982.1 GWh, 146.9% up year-on-year, thanks to its
increased availability of energy for resale and the expansion of the sales contract
portfolio, with the addition of Owens Illinois, BR Metais, MD Papéis, Schincariol and
TRW.
Volume (GWh)
Trading
Broker
Total
3Q10
3Q09
399.6
736.2
1,135.8
144.5
275.1
419.6
Var.%
3M10
3M09
Var.%
176.5%
825.8
396.6
108.2%
167.6% 2,156.3
811.0
165.9%
170.7% 2,982.1 1,207.6 146.9%
Financial Performance
STATEMENT OF CONSOLIDATED INCOME
3Q09
NET OPERATING REVENUE
OPERATING EXPENSE
Personnel
Material
Outsourced Services
Purchased Energy
Depreciation
Provisions
Others
Construction Cost
OPERATING RESULT(¹)
FINANCIAL RESULT
Financial Income
Financial Expenses
Other Operating Incomes/Expenses
RESULT BEFORE TAXES AND INTEREST
SOCIAL CONTRIBUTIONS & INCOME
TAX
NET INCOME
EBITDA
3Q10
%
1,441,612
1,553,902
7.8%
(1,238,690)
(60,592)
(4,607)
(65,399)
(774,557)
(85,966)
(67,022)
(25,339)
(155,208)
(1,255,128)
(64,769)
(8,892)
(87,975)
(821,977)
(89,144)
(21,794)
(26,003)
(134,574)
1.3%
6.9%
93.0%
34.5%
6.1%
3.7%
-67.5%
2.6%
-13.3%
202,922
298,774
47.2%
(51,400)
42,255
(93,655)
(58,909)
43,281
(102,190)
14.6%
2.4%
9.1%
6,131
1,284
-
157,653
241,149
53.0%
(86,869)
(80,186)
-7.7%
70,784
160,963
127.4%
288,888
387,918
34.3%
9
Net Revenue
Net revenue totaled R$ 1,553.9 million in 3Q10, 7.8% above 3Q09, mainly due to
the
positive
performance
of
distribution,
generation
and
commercialization
segments, respectively. This increase resulted from: (i) growth in the total energy
consumption (free and captive markets), which rose 3.1%, in the distribution
segment; (ii) increase in energy sold on the free market and adjustment of energy
sales contracts in the generation segment; (iii) and trading sales volume increase in
176.5%, in the commercialization segment.
Costs and Expenses
In 3Q10, the costs and expenses increase in 1.3%,compared to 3Q09, driven
mainly by increase in energy purchased and outsourced service’s cost in 6.1% and
34.5%. Those increases were partially offset by decrease in provision’s cost in
67.5%, between the periods, which represented R$ 22.6 million.
EBITDA
EBITDA totaled R$ 387.9 million in 3Q10, 34.3% above 3Q09. This result can be
explained by increase of net revenue in 7.8%, despite of increase of costs and
operating expenses in 1.3%. The EBITDA margin was 27.3% compare to 22.5% in
3Q09.
Net Income
Light posted a net income of R$ 161.0 million in 3Q10, 127.4% above 3Q09, due to
the combination of 34.3% increase in EBITDA and the lower payment of IR / CSSL
in 7.7%, despite of decrease in R$ 7.5 million in the financial result.
Capital Expenditures
The Company invested R$437.0 million in 9M10, R$181.5 million
CAPEX (R$ MM)
of which in the development of distribution and transmission
networks (new connections, capacity increases and repairs);
R$54.4
million
in
quality
improvements
and
preventive
23.9%
352.8 2.3
20.8
29.4
437.0 1.0
77.5
22.7
300.2
335.8
9M09
9M10
maintenance efforts; and R$75.6 million in network protection,
electronic
meters
and
fraud
regularization.
Generation
Distribution Administration Generation Commercial
investments totaled R$77.5 million, R$60.0 million of which refers to the new
generation projects and R$45.9 million of this to the Paracambi SHP project.
10
In 2010 Light intends to invest R$706 million to be allocated as follows: R$513
million to distribution, R$117 million to generation (R$84 million of which to new
projects) and R$76 million to administration and other businesses.
Generation Capacity Expansion Projects
3Q10 was marked by the following events related to projects for expanding Light’s
generating capacity:
•
Construction of the Paracambi SHP, which began in November of 2009, is
well under way. Currently, the dyke’s channel is being excavated and the spillway
basin is being strengthened, both of which are on schedule. The signing of a BNDES
financing contract is expected in the first quarter of 2011.
•
The Construction of New Feeder 1, part of the Lajes SHP water channeling
system, is under way and scheduled for completion in the first quarter of 2011.
•
The basic engineering project of the Itaocara hydroelectric project is
currently being analyzed by ANEEL, and IBAMA has set up a special team to
examine the project’s environmental impacts (EIA-RIMA), which is essential for the
Company to move ahead with the environmental licensing process, which includes
the holding of public hearings and the subsequent issue of preliminary and
installation licenses, conditions that must be met before the project can be
implemented;
•
The two wind energy projects acquired at the beginning of the year, located
in Aracati (CE) and with total installed capacity of 31 MW, participated in the
Reserve and Alternative Sources energy auctions held last August. The projects did
not advance to the second round of the auctions due to the low prevailing prices.
•
In addition to these projects, the Company is considering participating in
several other generation undertakings, aiming to increase its installed generating
capacity.
11
Corporate Governance and the Capital Markets
On September 30, 2010, the capital stock of Light S.A. comprised 203,934,060
common shares with no par value.
The following chart represents Light’s shareholding structure on the same date:
Controlling Shareholders
52,13%
CEMIG
Companhia
Energética de MG
LEPSA
LUCE
Empreendimentos
Participações S.A.
AGC
Andrade Gutierrez
Concessões
RME
Rio Minas Energia
BNDESPAR
13,03%
13,03%
0,53%
25,53%
Free Float
47,87%
MINORITÁRIOS
EDFI
27,85%
20,02 %
LIGHT S.A
(Holding)
100%
LIGHT
Serviços de
Eletricidade
S.A
100%
LIGHT
Energia S.A.
100%
LIGHT
ESCO
Prestação de
Serviços S.A.
51%
LIGHTGER
S.A.
100%
ITAOCARA
Energia Ltda
100%
100%
LIGHTCOM
Comercializ.
de Energia S.A.
LIGHTHIDRO
Ltda
100%
INSTITUTO
LIGHT
51%
AXXIOM
Soluções
Tecnológicas S.A.
On October 7, 2010, ENLIGHTED PARTNERS VENTURE CAPITAL LLC
(“ENLIGHTED”) exercised the put option that is the object of the Option Agreement
for the Sale of Shares and other Covenants (“Option”) entered into on March 24,
2010 between CEMIG and ENLIGHTED,, selling its shares in LUCE INVESTMENT
FUND (“LUCE Fund”) to Companhia Energética de Minas Gerais – CEMIG (“CEMIG”)
or any third party appointed thereby.
LUCE Fund holds seventy-five percent (75%) of LUCE BRASIL FUNDO DE
INVESTIMENTO EM PARTICIPAÇÕES (“LUCE”), which in turn indirectly holds,
through Luce Empreendimentos e Participações S.A. (“LEPSA”), 13.03% of the
Company’s total and voting capital.
On October 8, 2010, ENLIGHTED formalized its intention of beginning
negotiations with CEMIG, aiming at the maintenance of its interest in LUCE.
The exercise of the Option does not alter the validity of the shareholders’
agreement in force, entered into on December 30, 2009, and control of the
Company will continue to be shared with Andrade Gutierrez Concessões S.A.,
holder of 0.53% of its total and voting capital; RME – Rio Minas Energia
Participações S.A., holder of 13.03% of its total and voting capital; CEMIG, holder
12
of 25.53% of its total and voting capital; and LEPSA, holder of 13.03% of its total
and voting capital.
BOVESPA (spot market) - LIGT3
Daily Average
Number of shares traded (Thousand)
Number of Transactions
Traded Volume (R$ Million)
Quotation per shares: (Closing)*
Share Valuing (Quarter)
IEE Valuing (Quarter)
Ibovespa Valuing (Quarter)
*Ajusted by earnings
3Q10
2Q10
3Q09
871.7
689.1
1,123.8
1,856
1,521
1,587
R$
19.0 R$
15.0 R$
27.7
R$
21.60 R$
19.46 R$
20.68
11.0%
-12.7%
-8.3%
5.9%
-0.6%
9.3%
13.9%
-13.4%
19.5%
Disclaimer
The information on the Company’s operations and its Management’s expectations regarding its future
performance has not been revised by independent auditors.
Forward-looking statements are subject to risks and uncertainties. These statements are based on the
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 those of the Company's Board of Directors and Officers. Reservations 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 to future events, thus depending on circumstances that may or may
not occur.
Future results and creation of value to shareholders might significantly differ from those
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.
13
APPENDIX I
Light by Numbers
OPERATING INDICATORS
Nº of Consumers (thousand)
Nº of Employees
Average provision tariff - R$/MWh
Average provision tariff - R$/MWh (w/out taxes)
Average energy purchase cost¹ - R$/MWh
Installed generation capacity (MW)
Assured energy (average MW)
Pumping and internal losses (average MW)
Available energy (average MW)
Net Generation (GWh)
Load Factor
¹Includes purchase on spot
3Q10
4,046
3,707
404.3
277.9
99.4
855
637
87
550
1,105
64.3%
3Q09
4,011
3,699
406.7
281.7
106.9
855
637
100
537
1,146
66.2%
Var. %
0.9%
0.2%
-0.6%
-1.3%
-7.0%
-13.0%
2.4%
-3.5%
-
14
Review report on Quarterly Information
(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and
Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in
Brazil, rules of the CVM and the International Financial Reporting Standards - IFRS)
To
The Board of Directors and Shareholders of
Light S.A.
Rio de Janeiro - RJ
1. We have reviewed the accounting information included in the individual Quarterly Information - ITR
of Light S.A. (“The Company”), comprising the balance sheet and statements of operations, of
changes in shareholders’ equity and of cash flows and the consolidated Quarterly Information of this
Company and its subsidiaries, comprising the consolidated balance sheet and the consolidated
statements of operations, of changes in shareholders’ equity and of cash flows, both referring to the
quarter ended September 30, 2010, which includes the explanatory notes and the performance report,
which are the responsibility of its management.
2. Our review was performed in accordance with the review standards established by IBRACON - The
Brazilian Institute of Independent Auditors and the Federal Accounting Council - CFC, which
comprised, mainly: (a) inquiry and discussion with the management responsible for the accounting,
financial and operational areas of the Company and its subsidiaries, regarding the main criteria
adopted in the preparation of the Quarterly Information; and (b) review of the information and
subsequent events, which have, or may have, a material effect on the financial and operational
position of the Company and its subsidiaries.
3. Based on our review, we are not aware of any material change that should be made to the accounting
information contained in the individual Quarterly Information of Light S.A. referred to above, for
them to be in accordance with accounting rules adopted in Brazil, notably the technical
pronouncement CPC 21 - Interim Financial Reporting and rules issued by the Brazilian Securities
and Exchange Commission - CVM applicable to the preparation of the Quarterly Information.
4. Based on our review we are not aware of any material change that should be made to the accounting
information contained in the consolidated Quarterly Information of Light S.A. and its subsidiaries
referred to above, for them to be in accordance with the International Financial Reporting Standards IFRS, notably the standard IAS 34 - Interim Financial Reporting, issued by International Accounting
Standards Board (IASB), and rules issued by the Brazilian Securities and Exchange Commission CVM, applicable to the preparation of the Quarterly Information.
5. As mentioned in explanatory note 2, during the year 2009, CVM approved several Pronouncements,
Interpretations and Technical Orientations issued by the Accounting Pronouncements Committee CPC which are effective for 2010, and changed the accounting practices adopted in Brazil. These
changes were adopted by the Company and its subsidiaries in the preparation of the individual
Quarterly Information of the Company for the quarter ended September 30, 2010 and disclosed in
explanatory note 2. The individual Quarterly Information are being restated and, therefore, are
different from those originally stated by the Company, including our review report, dated November
10, 2010. The individual Quarterly Information related to the year and period of 2009, presented for
comparison purposes, were adjusted to include the changes in accounting practices adopted in Brazil
in force for 2010.
6. As mentioned in explanatory note 2, the Company and its subsidiaries started to present from 2010
on, consolidated Quarterly Information in accordance with International Financial Reporting
Standards - IFRS, notably the standard IAS 34 - Interim Financial Reporting, issued by the IASB.
The consolidated Quarterly Information of the Company and its subsidiaries related to the year and
period ended 2009, prepared in accordance with the mentioned International Accounting Standards,
are being presented for comparison purposes.
7. Our review was performed to issue a report on the review of the accounting information
included in the individual Quarterly Information of this Company as mentioned in the first
paragraph, taken as a whole. The individual and consolidated Statements of Value Added
(DVA), required by Brazilian corporate law, are not required by the International
Accounting Standards issued by the IASB and are being presented for purposes of
additional analysis. This supplementary information has been submitted to the same review
procedures applied to the accounting information included in the Quarterly Information of
the Company, and based on our review, we are not aware of any material changes that
should be made for it to be in accordance with the accounting information included in the
Quarterly Information mentioned in the first paragraph, taken as a whole.
Rio de Janeiro, May 13, 2011
KPMG Auditores Independentes
CRC SP-014428/O-6 F-RJ
Original in Portuguese signed by
Vânia Andrade de Souza
Accountant CRC RJ-057497/O-2
LIGHT S.A.
BALANCE SHEET
(In thousands of reais)
Notes
ASSETS
Cash and cash equivalents
Marketable Securities
Consumers, concessionaires and permissionaires
Taxes and contributions
Inventories
Receivables from swap transactions
Dividends receivable
Receivables from services provided
Prepaid expenses
Other receivables
5
6
7
8
Parent Company
09/30/2010
12/31/2009
Consolidated
09/30/2010
12/31/2009
425.605
931
62
25
2.064
14.584
774
155.701
175
20.212
838.580
11.083
1.227.372
319.338
19.401
82.769
2.716
124.466
760.313
68.059
1.355.854
442.668
14.369
4
46.015
2.381
97.250
428.687
191.446
2.625.725
2.786.913
194
3.348.904
736
-
152
3.513.147
678
-
275.799
57.908
961.106
384.903
216.875
829
7.865
22.710
1.607.269
3.558.935
297.798
40.767
1.115.546
354.784
200.520
1.658
8.725
20.388
1.600.568
3.422.980
TOTAL NON-CURRENT ASSETS
3.349.834
3.513.977
7.094.199
7.063.734
TOTAL ASSETS
3.778.521
3.705.423
9.719.924
9.850.647
33
11
TOTAL CURRENT ASSETS
Consumers, concessionaires and permissionaires
Taxes and contributions
Deferred taxes
Concession financial assets
Escrow deposits
Prepaid expenses
Other receivables
Investments
Property, plant and equipment
Intangible assets
7
8
9
10
11
12
13
14
The notes are an integral part of the financial statements.
LIGHT S.A.
BALANCE SHEETS
(In thousands of reais)
Notes
LIABILITIES
Suppliers
Taxes and contributions
Loans, financing and financial charges
Debentures and financial charges
Dividends payable
Estimated liabilities
Sector charges - Consumer contributions
Contingencies
Post-employment benefits
Other liabilities
15
9
16
17
24
18
19
20
21
TOTAL CURRENT LIABILITIES
Loans, financing and financial charges
Debentures and financial charges
Taxes and contributions
Deferred taxes
Contingencies
Post-employment benefits
Debts with related parties
Other liabilities
TOTAL NON-CURRENT LIABILITIES
16
17
9
SHAREHOLDERS' EQUITY
Capital stock
Capital reserves
Recognized granted options
Treasury shares
Profits Reserve
Legal reserve
Profit retention
Proposed additional dividends
Equity valuation adjustments
Retained earnings/accumulated losses
TOTAL SHAREHOLDERS' EQUITY
23
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
19
20
21
Parent Company
09/30/2010
12/31/2009
Consolidated
09/30/2010
12/31/2009
494
8
363.002
147
1.786
6.348
53
143.647
223
1.524
499.982
281.250
177.008
398.290
363.002
56.017
122.856
93.640
214.907
564.181
285.180
197.150
96.412
143.647
52.374
110.791
95.044
236.028
365.437
151.795
2.206.952
1.780.807
1.119.547
818.552
175.823
328.444
576.279
869.468
211.775
1.006.204
1.165.759
303.585
301.230
669.353
861.386
208.695
-
-
-
4.099.888
4.516.212
2.225.822
2.225.822
2.225.822
2.225.822
-
34.406
(6.361)
-
34.406
(6.361)
133.999
151.988
500.227
401.048
3.413.084
133.999
499.188
288.693
518.761
(140.880)
3.553.628
133.999
151.988
500.227
401.048
3.413.084
133.999
499.188
288.693
518.761
(140.880)
3.553.628
3.778.521
3.705.423
9.719.924
9.850.647
LIGHT S.A.
INCOME STATEMENT
FOR THE THE PERIODS ENDED SEPTEMBER 30
Notas
Parent Company
01/01/2010 to
07/01/2009 to
09/30/2010
09/30/2009
07/01/2010 to
09/30/2010
01/01/2009 to
09/30/2009
Consolidated
01/01/2010 to
07/01/2009 to
09/30/2010
09/30/2009
07/01/2010 to
09/30/2010
01/01/2009 to
09/30/2009
NET OPERATING REVENUE
26
-
-
-
-
1.553.902
4.775.487
1.441.612
4.567.576
OPERATING COSTS
GROSS PROFIT
28
-
-
-
-
(1.129.898)
424.004
(3.334.815)
1.440.672
(1.083.902)
357.710
(3.388.532)
1.179.044
OPERATING EXPENSES
Sales expenses
General and administrative expenses
Other Incomes/Expenses
28
(1.903)
(1.903)
-
(5.430)
(5.430)
-
(11.401)
(11.401)
-
(33.872)
(33.872)
-
(123.946)
(91.249)
(33.981)
1.284
(446.129)
(276.261)
(181.747)
11.879
(148.657)
(77.634)
(77.154)
6.131
(470.456)
(241.217)
(238.267)
9.028
(1.903)
(5.430)
(11.401)
(33.872)
300.058
994.543
209.053
708.588
533
582
(49)
903
952
(49)
(101)
74
(175)
761
1.177
(416)
(58.909)
43.281
(102.190)
(188.949)
139.447
(328.396)
(51.400)
42.255
(93.655)
(75.471)
121.782
(197.253)
OPERATING INCOME
FINANCIAL INCOME
Revenues
Expenses
30
EQUITY IN THE EARNINGS OF SUBSIDIARIES
INCOME BEFORE INCOME TAX AND
SOCIAL CONTRIBUTION
Current income tax and social contribution taxes
Deferred income tax and social contribution taxes
NET INCOME FOR THE PERIOD
162.333
527.921
82.286
344.441
160.963
523.394
70.784
311.330
-
-
-
-
160.963
523.394
70.784
311.330
8
8
-
-
-
-
241.149
805.594
157.653
633.117
(55.060)
(25.126)
(171.514)
(110.686)
(75.168)
(11.701)
(182.746)
(139.041)
160.963
523.394
70.784
311.330
LIGHT - S.A.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
PERIODS ENDED SEPTEMBER 30
( In thousands of reais)
PROFIT RESERVES
BALANCE ON 12/31/09
Realization of equity valuation adjustment
Loss absorption – adjustment to 1st time adoption of IFRS
Recognized granted options
Derecognition of treasury shares
Transfer of unexercised options
Treasury shares
Dividends paid - profits reserve
Payment of additional proposed dividends
Additional proposed dividends
Net Income in fiscal year
Allocation of net income for the year:
Legal reserve
Proposed dividends
Additional proposed dividends
Profit retention reserve
BALANCE ON 9/30/10
The notes are an integral part of the financial statements.
CAPITAL
STOCK
2.225.822
-
CAPITAL
RESERVES
34.406
(12.243)
(6.361)
(15.802)
-
2.225.822
LEGAL
RESERVE
133.999
RETAINED
EARNINGS
499.188
PROPOSED
ADDITIONAL
ADIVIDENDS
288.693
6.361
-
-
-
-
-
-
-
133.999
151.988
TREASURY
SHARES
(6.361)
-
-
-
15.802
(363.002)
-
(288.693)
-
EQUITY
VALUATION
ADJUSTMENTS
518.761
(18.534)
-
RETAINED
EARNINGS /
(ACCUMULATED)
LOSSES
(140.880)
18.534
-
-
523.394
-
-
500.227
401.048
TOTAL
3.553.628
(12.243)
(288.693)
(363.002)
523.394
3.413.084
LIGHT - S.A.
CASH FLOW STATEMENTS FOR THE PERIODS ENDED SEPTEMBER 30
( In thousands of reais )
Parent company
01/01/2010 to 09/30/2010
01/01/2009 to 09/30/2009
Consolidated
01/01/2010 to 09/30/2010
01/01/2009 to 09/30/2009
Cash flow tax operating activities
Income before income tax and social contribution
Adjustments of expenses (revenues) not affecting cash
Allowance for doubtful accounts
Depreciation and amortization
Amortization of intangible assets
Loss (gain) from the sale of intangible assets / Residual value of derecognized
property, plant and equipment
Exchange losses (gains) from financial activities
Restatement of contingencies
Adjustment of receivables to present value
Interest expenses on loans
Charges and monetary variation on post-employment liabilities
Provision for / (Reversal of ) liabilities - contingencies
Options granted
160.963
-
311.330
-
805.594
633.117
205.459
262.858
(9.322)
184.643
257.722
(9.322)
(162.333)
-
(344.441)
30.206
(8.262)
29.778
5.488
194.253
75.841
(44.334)
-
(54.665)
37.967
(16.074)
202.767
42.765
34.821
30.208
407.868
(395)
113
(31)
(6)
(169)
181
33
159
-
56.976
(60.466)
92.055
(5.032)
(36.754)
494
(16.355)
(43.332)
(6.802)
(154.664)
257.749
3.246
(9.042)
260
642
54.644
Increase/(reduction) in liabilities
Suppliers
Estimated liabilities
Taxes and contributions
Sector charges - Consumer Contributions
Contingencies
Post-employment benefits
Other liabilities
Interests paid
Income and social contribution taxes paid
403.003
(46)
(62)
38
(14)
14
365
18
(2)
(73)
-
(64.199)
3.642
(104.478)
12.065
(78.518)
(69.163)
(20.487)
(141.267)
(113.626)
(32.617)
207
(171.791)
(8.582)
(56.039)
(69.901)
(42.508)
(151.256)
(98.146)
Net cash from operating activities
401.871
404.848
928.908
859.349
20.105
(158)
19.947
1.530
(36.388)
(34.858)
(45.359)
71.854
14.299
8.405
(68.479)
(368.024)
(30.119)
(3.976)
7.576
(28.149)
(306.571)
(44.234)
(5.483)
(421.399)
(376.861)
-
(407.868)
(407.868)
(432.340)
964.337
(961.239)
(429.242)
(407.868)
423.940
(192.373)
(176.301)
(Increase)/reduction in Assets
Securities
Consumers, concessionaires and permissionaires
Dividends received
Taxes and contributions
Inventories
Services
Prepaid expenses
Escrow deposits
Other
Cash flow from investment activities
Share acquisition
Receivables related to shares
Receivables from the sale of property, plant and equipment
Receivables from the sale of financial asset / investment
Capital increase - mergers
Acquisition of property, plant and equipment
Acquisition of intangible assets
Consumer contributions
Acquisition of financial assets (concession)
Additions to/acquisition of investment
Shareholding
Net cash used in investment activities
Cash flow from financing activities
Dividends and interest on equity paid
Loans and financing
Amortization of loans and financing
Net cash used in financing activities
Increase (decrease) in cash and cash equivalents
421.818
(37.878)
78.267
306.187
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at close of the period
Changes in cash and cash equivalents
3.787
425.605
421.818
40.256
2.378
(37.878)
760.313
838.580
78.267
548.983
855.170
306.187
TABLE OF CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
OPERATIONS
PRESENTATION OF THE QUARTERLY FINANCIAL INFORMATION
INITIAL ADOPTION OF IFRS
SUMMARY OF ACCOUNTING PRACTICES
CASH AND CASH EQUIVALENTS
MARKETABLE SECURITIES
CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS)
TAXES AND CONTRIBUTIONS
DEFERRED TAXES
CONCESSION FINANCIAL ASSETS
OTHER RECEIVABLES
INVESTMENTS
PROPERTY, PLANT AND EQUIPMENT
INTANGIBLE ASSETS
SUPPLIERS
LOANS, FINANCING AND FINANCIAL CHARGES
DEBENTURES AND FINANCIAL CHARGES
REGULATORY CHARGES
CONTINGENCIES
POST-EMPLOYMENT BENEFITS
OTHER PAYABLES
RELATED-PARTY TRANSACTIONS
SHAREHOLDERS’ EQUITY
DIVIDENDS
EARNINGS PER SHARE
NET OPERATING REVENUE BREAKDOWN
ELECTRIC POWER SUPPLY
OPERATING COSTS AND EXPENSES
ELECTRIC POWER PURCHASED FOR RESALE
FINANCIAL INCOME
FINANCIAL INSTRUMENTS
INSURANCE
SEGMENT REPORTING
LONG-TERM INCENTIVE PLAN
STATEMENT OF VALUE ADDED
SUBSEQUENT EVENTS
1. OPERATIONS
Light S.A. is a publicly-held company, organized and domiciled in Rio de Janeiro,
Brazil. Its headquarters are located at Avenida Marechal Floriano, Rio de Janeiro.
The corporate purpose of Light S.A. (Company) is to hold equity interests in other
companies, as partner or shareholder, and is involved in the direct or indirect
exploitation, as applicable, of electric power services, including electric power
generation, transmission, sale and distribution systems, as well as other related services.
The Company is listed in the New Market (Novo Mercado) of the São Paulo Stock
Exchange (BM&F Bovespa – under LIGT3).
Light S.A. is a parent company of the following companies:
Light Serviços de Eletricidade S.A. (Light SESA) - Publicly-held corporation engaged
in the distribution of electric power;
Light Energia S.A. - (Light Energia) – Closely-held corporation whose main activity is
to study, plan, construct, operate and exploit systems of electric power generation,
transmission and sales, and related services; Light Energia has corporate interest in the
following subsidiaries:
o Central Eólica São Judas Tadeu Ltda. – company in the pre-operating stage,
whose main activity is to produce and trade electricity through the Wind Plant
located in the state of Ceará, with a nominal power of 18 MW.
o Central Eólica Fontainha Ltda. – company in the pre-operating stage, whose
main activity is to produce and trade electricity through the Wind Plant located
in the state of Ceará, with a nominal power of 16 MW
Light Esco Prestação de Serviços S.A. - (Light Esco) – A closely-held company whose
purpose is purchase, sale, import, export and advisory services in the energy sector.
Lightcom Comercializadora de Energia S.A. (Lightcom) – A closely-held company
whose purpose is the purchase, sale, import, export and advisory services in the energy
sector.
Itaocara Energia Ltda. - (Itaocara Energia) – Company in the pre-operating stage,
primarily engaged in the preparation of projects, construction, installation, operation and
exploration of plants to generate electrical power.
Light Soluções em Eletricidade Ltda. former Lighthidro Ltda. (Light Hidro) now has the
new corporate name in accordance with new articles of association dated January 27,
2011 and its main purpose to provide services to low voltage clients, including
assembly, restoration and maintenance in general.
Instituto Light para o Desenvolvimento Urbano e Social (Light Institute) – Nonprofit
private entity is engaged in participating in social and cultural projects, with interest in
the cities’ economic and social development, affirming the Company’s ability to be
socially responsible.
Light S.A. is the parent company of the following joint ventures:
Lightger S.A. (Light Ger) - Company in the pre-operating stage for participation in
auctions for concession, authorization and permission for new plants. On December 24,
2008, Light Ger obtained the installation license that authorizes the start of
implementation works of Paracambi small hydroelectric power plant (PCH). Jointlyowned subsidiary of Light S.A. (51%) and Companhia Energética de Minas Gerais –
CEMIG (49%).
Axxiom Soluções Tecnológicas S.A. (Axxiom) – Privately-held company, whose
purpose is providing technological solutions and operational management systems to
public concessionaires, including electricity, gas, water and sewage companies and other
utility companies. Jointly-controlled by Light S.A. (51%) and Companhia Energética de
Minas Gerais – CEMIG (49%).
Grupo Light’s concessions and authorizations:
Concessions / Authorizations
Generation, transmission and distribution
PCH Paracambi
Itaocara Hydroelectric Power Plant
Date of Concession /
Authorization
Jul/1996
Feb/2001
Mar/2001
Maturity Date
Jun/2026
Feb/2031
Mar/2036
2. PRESENTATION OF THE QUARTERLY FINANCIAL INFORMATION
Consolidated Quarterly Financial Information
The consolidated financial quarterly information was prepared according to the
International Financial Reporting Standards issued by the International Accounting
Standards Board (IASB) and also according to accounting practices adopted in Brazil
(BR GAAP).
Individual Quarterly Financial Information
The individual quarterly financial information is presented according to the accounting
practices adopted in Brazil, in compliance with the provisions of the Corporation Law,
and comprise the changes introduced by Laws no. 11,638/07 and 11,941/09,
complemented by new pronouncements, interpretations and guidance from CPC, issued
in 2009 and 2010, approved by CFC Resolutions, and in accordance with CVM rules.
The Company did not calculate comprehensive income, which is the reason why it is
not presenting the Comprehensive Income Statement.
Quarterly Financial Information 2010 and Financial Statements 2009
Until December 31st, 2009, the Company presented its individual and consolidated
financial statements according to the accounting standards adopted in Brazil, which
comprised the changes introduced by the Laws no. 11,638/07 and 11,941/09
(Provisional Measure nº 449/2008 - MP no. 449/2008), complemented by the
pronouncements of the Accounting Pronouncements Committee – CPC, approved by
resolutions of the Federal Accounting Council – CFC and rules of the Securities
Commission – CVM until December 31, 2008.
As established in the CVM Deliberation no. 609/2009 (CPC 37 – Initial Adoption of
International Accounting Standards), the international Standards were retroactively
implemented at January 1st, 2009. Therefore, the financial statements and quarterly
financial information originally disclosed were adjusted and are presented according to
the international accounting Standards and practices adopted in Brazil.
The authorization to conclude this quarterly financial information was given by the
Company’s Management at May 13, 2011.
Basis of measurement
The financial statements were prepared based at historical cost, except for the financial
instruments measured by fair value through the income statement; defined benefit
actuarial asset, which is recognized as the net total of plan assets, adding the
unrecognized past service cost and unrecognized actuarial losses, deducing the
unrecognized actuarial gains and the present value of the defined benefit liability; and
fixed assets of the generation plants, measured at fair value as attributable cost.
Functional currency and presentation currency
This individual and consolidated Quarterly Financial Information is stated in Brazilian
Reais, which is the Company’s functional currency. All financial information presented
in Brazilian Reais was rounded to the nearest thousand, except when otherwise
indicated.
Use of estimates and judgment
The preparation of the financial statements according to the IFRS and CPC standards
demand the Management to make certain judgments, estimates and premises that affect
the application of accounting policies and the reported amounts of assets, liabilities,
revenues and expenses. Actual results may differ from these estimates.
Estimates and premises are continuously reviewed. Reviews regarding accounting
estimates are recognized in the period when the estimates are effectively reviewed and
in any affected future periods.
Information about premises and estimates that may result in adjustments within the next
financial year are included in the following Notes:
Note 09 – Deferred Taxes
Note 19 – Contingencies
Note 20 – Post Employment Benefits
Note 26 – Net Operating Revenue Breakkdown
Consolidated Group
The consolidated financial statements include those of Light S.A., its direct subsidiaries
and joint ventures, listed as follows:
Interest (%)
2010
Light Serviços de Eletricidade S.A.
Light Energia S.A
Light Esco Prestação de Serviços S.A.
Lightcom Comercializadora de Energia S.A
Light Hidro Ltda.
Instituto Light para o Desenvolvimento Urbano e Social
Itaocara Energia Ltda.
Lightger S.A.
Axxiom Soluções Tecnológicas S.A.
100
100
100
100
100
100
100
51
51
3. INITIAL ADOPTION OF IFRS
The approval of the Laws no. 11,638/07 and 11,941/09 started for publicly-held
companies the process of converging with international accounting standards, through
issuance, by CPC, and approval by Brazilian accounting regulating bodies, of several
accounting pronouncements, interpretations and guidelines, in two steps: the first step,
developed and applied in 2008, with the adoption of the technical pronouncements CPC
00 to 14 (the latter revoked since 2010) and the second step, with issuance, in 2009, of
the technical pronouncements CPC 15 to 43 (except for CPC 34), with mandatory
adoption in 2010, with retroactive effects to 2009 for comparability purposes.
The Company published on March 31, 2011, the individual and consolidated financial
statements referring to December 31, 2010, which include a detailed description of
exemptions adopted and exceptions used, the opening balance sheet on January 1, 2009,
the closing balance sheet on December 31, 2009 and the income statement for the year
ended December 31, 2009.
Said individual financial statements also include effects on income and shareholders’
equity of the quarters ended on 3/31/2009, 6/30/2009, 9/30/2009, 3/31/2010, 6/30/2010
and 9/30/2010 resulting from full adoption of the rules of 2010.
In compliance with CVM Deliberation no. 656, of January 25th, 2011, the Company
presents below the effects in the income statement and in shareholders’ equity, in the
quarters ended in 9/30/2009 and 9/30/2010, arising from full adoption of the 2010
standards.
Parent Company
9/30/2010
Balance before the adoption of the new practices
Adjustments and reclassifications:
Pre-operational expenses
Investment
Regulatory assets and liabilities
Fair value as deemed cost
Equity method
Deferred income tax and social contribution
Deferred taxes
Other adjustments
Balance after the adoption of the new practises
Consolidated
9/30/2009
Shareholders
Equity
Net Income
Shareholders
Equity
2.861.911
350.102
3.191.030
551.174
551.174
173.293
173.293
348.123
348.123
3.413.085
523.395
3.539.153
9/30/2010
Net Income
Shareholders
Equity
357.115
2.861.911
(45.785)
(45.785)
311.330
(8.839)
86.267
757.918
(287.023)
2.851
551.174
3.413.085
9/30/2009
Net Income
350.102
(472)
291.362
(28.082)
(89.514)
173.293
523.395
Shareholders
Equity
3.191.030
(8.006)
(261.363)
799.747
(183.051)
795
348.123
3.539.153
Net Income
357.115
(702)
143.244
(32.064)
(37.801)
(118.462)
(45.785)
311.330
4. SUMMARY OF ACCOUNTING PRACTICES
The accounting policies applied are in compliance with policies described in our
financial statements in BR GAAP for the year ended December 31, 2010 and have been
applied consistently to all periods presented in these financial statements.
Several IFRS rules, amendments to rules and interpretations issued by IASB are not yet
in force in the year ended in January 1st, 2010, such as:




Improvements to IFRS 2010.
IFRS 9 Financial Instruments.
Prepayment of a minimum fund requirement (Amendment to IFRIC 14).
Amendments to IAS 32 Classification of rights issues.
CPC did not issued yet pronouncements equivalent to the IFRSs mentioned above, but
there are expectations that it does before the required date to become in force.
Anticipated adoption of IFRSs pronouncements is conditioned to previous approval in
normative act by CVM – Brazilian Securities and Exchange Commission.
Since it did not adopt these standards in anticipation, the Company has not yet appraised
the potential effects of them in its financial statements.
5. CASH AND CASH EQUIVALENTS
Parent Coompany
09/30/2010
12/31/2009
Cash
Financial investments of immediate liquidity
Certificate of deposit (CDB)
Total
Consolidated
09/30/2010
12/31/2009
65
2.557
16.627
27.139
425.540
425.605
12.027
14.584
821.953
838.580
733.174
760.313
Financial investments are represented by transactions purchased from organizations
trading in the domestic financial market, at arm-length's terms and rates. These
investments are highly liquid, have a daily repurchase commitment by the counterparty
financial institution (the repurchase rate is previously agreed upon by the parties),
involve low credit exposures, and yield according to the variation of the interbank
deposit rate (CDI), without any loss in the earnings if early redeemed.
6. MARKETABLE SECURITIES
These papers involve bank deposit certificates (CDB) in the amount of R$11,033
(R$68,059 on December 31, 2009) forming the underlying assets of certain surety bonds
pledged in power auctions, and also other proceeds from the sale of assets that were held
for re-investment in the electric grid system or have maturities of 3 months or longer.
7. CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRIES (CLIENTS)
Consolidated
09/30/2010
12/31/2009
CURRENT
Billed sales
Unbilled sales
Debt payment by installments (a)
Other receivables
Sales within the scope of CCEE
Supply and charges related to the use of electric network
(-) Allowance for doubtful accounts (b)
NON-CURRENT
Debt payment by installments (a)
Other receivables
1,779,802
249,677
155,006
1,292
2,185,777
1,678,167
286,170
153,421
2,117,758
8,796
53,179
61,975
1,001
54,946
55,947
(1,020,380)
1,227,372
(817,851)
1,355,854
274,914
885
275,799
297,798
297,798
a) The balances of debt repayment facilities were adjusted to their present value, as
applicable, pursuant to Law No. 11,638/07. The present value is determined for each
relevant consumer debt renegotiation (debt repayment facilities) based on such
interest rate as will reflect the term and risk associated with each individual
transaction, on average 1% per month.
Accounts receivable includes the installment agreements present value, including
options of early payment of installments, which if they are exercised ensure payment
discounts to clients. In September 2010, option was exercised generating financial
expenses amounting to R$16,216. In 2011, options are expected to be exercised at the
approximate amount of R$21,007.
b) In the third quarter of 2010, bad debts of R$1,456 (R$14,133 in 2009) were writtenoff. An allowance for doubtful accounts was set up based on certain premises and in
an amount deemed sufficient to meet any asset realization losses, in accordance with
the ANEEL guidelines summarized as follows:
Customers with significant debts (large accounts):
- Outstanding balances of customer accounts are reviewed on a case-by-case basis and
per consumer class.
In all other instances:
- Residential consumers – over 90 days past due.
- Commercial consumers – over 180 days past due.
- Industrial, rural, government, public lighting, utility, and other accounts – over 360
days past due.
Overdue and falling due balances related to electric power billed sales and debt payment
by installments are distributed as follows:
Billed sales and renegotiated debts
Maturing
balance
Residential
Industrial
Commercial
Rural
Public sector
Public lighting
Public utility
Total - current and non-current
191,195
25,466
123,891
634
33,196
12,976
229,268
616,625
Matured Balances
Overdue up to Overdue over
90 days
90 days
140,985
12,848
40,686
258
13,858
2,511
793
211,940
764,820
158,795
297,417
601
116,386
32,031
11,107
1,381,157
TOTAL
09/30/2010
12/31/2009
1,097,000
197,110
461,994
1,493
163,439
47,518
241,168
2,209,722
1,053,757
216,120
377,087
1,437
160,921
41,045
279,019
2,129,386
Allowance for bad debts
09/30/2010
(750,401)
(39,683)
(222,947)
(460)
(4,731)
(1,611)
(547)
(1,020,380)
12/31/2009
(616,265)
(28,986)
(167,098)
(388)
(4,300)
(808)
(6)
(817,851)
8. TAXES AND CONTRIBUTIONS
Parent Company
Assets
Liabilities
09/30/2010
12/31/2009
09/30/2010
12/31/2009
CURRENT
Tax credits – IRPJ and CSLL (a)
IRRF (Withholding Income Tax) payable
Prepaid IRPJ/CSLL
Other
TOTAL
931
931
703
71
774
2
-
-
6
8
53
53
Consolidated
Assets
Liabilities
09/30/2010
12/31/2009
09/30/2010
12/31/2009
CURRENT
Tax credits – IRPJ and CSLL (a)
IRRF (Withholding Income Tax) recoverable
IRRF (Withholding Income Tax) payable
ICMS recoverable
ICMS payable
Installment Payments - Law 11,941/09 (b)
PIS/COFINS recoverable (d)
PIS/COFINS payable
Prepaid IRPJ/CSLL
Provision for IRPJ/CSLL
Other
TOTAL
NON-CURRENT
Installment Payment - Law 11,941/09 (b)
ICMS recoverable (d)
TOTAL
44,070
120,545
10,644
127,323
16,756
319,338
102,073
11,522
109,704
6,634
181,364
31,371
442,668
416
30,161
20,767
48,106
172,699
9,101
281,250
2
5,561
21,684
57,420
188,835
11,678
285,180
57,908
57,908
40,767
40,767
175,823
175,823
303,585
303,585
a) The balance refers to negative balance tax credits recoverable arising from
withholdings of cash investments and government agencies in the amount of R$7,456
and prepaid Income Tax and Social Contribution credits for 2009 amounting to
R$36,614. The variation of the amounts for the quarter is obtained by the adjustment
based on the SELIC rate in the amount of R$21,566, including new credits in the
amount of R$152,995, net of offsets in the year, amounting to R$232,564.
b) New REFIS (Tax Recovery Program) - (Law 11,941/09) – Light has been making
monthly minimum payments of one hundred reais as provided for by laws, plus
payment of installments deriving from migration of PAES (Special Installment
Payment Program) - Social Security (REFIS II), in the quarterly consolidated amount
of R$1,752 and updating the balance of the installments by SELIC rate, in the amount
of R$4,085. Therefore, Light is awaiting the service of process from the Brazilian
Federal Revenue Office in order to consolidate REFIS, since documents necessary
have been delivered.
c) Recoverable PIS (Social Contribution Tax on Gross Revenue for Social Integration
Program) and COFINS (Social Contribution Tax on Gross Revenue for Social
Security Financing) balance refers to contributions retained by public authorities and
services rendering.
d) The amount of the state VAT (“ICMS”) recovery on September 30, 2010 includes
R$7,934 (R$34,675 on December 31, 2009) of credits deriving from the
renegotiations of the CEDAE debt in July and December 2006.
9. DEFERRED TAXES
ASSETS
Consolidated
09/30/2010
12/31/2009
Deferred
Deferred
Tax Base
tax
Tax Base
tax
Income Tax
Tax Losses
Temporary Differences
900,853
1,913,014
225,213
478,252
1,385,458
1,917,214
346,365
479,304
Social Contribution
Negative Base
Temporary Differences
949,661
1,913,014
85,469
172,171
1,303,657
1,917,214
117,329
172,549
Total
LIABILITIES
961,106
1,115,546
Consolidated
09/30/2010
12/31/2009
Deferred
Deferred
Tax Base
tax
Tax Base
tax
Income Tax
Temporary Differences
966,013
241,503
885,972
221,493
Social Contribution
Temporary Differences
966,013
86,941
885,972
79,737
Total
328,444
301,230
The recording of tax credits includes the recoverable amount in up to 10 years, as
provided for by CVM Rule 371/02 and in the assumptions of that credit cannot be
barred, and it is based on a feasibility study approved by the Board of Directors, which
shows the balance recovery in up to 4 years.
The interim difference taxable basis breakdown is as follows:
Consolidated
09/30/2010
IR
12/31/2009
CSLL
IR
CSLL
ASSETS
Allowance for doubtful debtors
Provision for profit sharing
Provision for labor contingencies
Provision for tax contingencies
Provision for civil contingencies
Impacts resulting from the adoption of the new CPCs
Other provisions
1,012,286
20,813
169,937
198,691
180,273
158,841
172,173
1,012,286
20,813
169,937
198,691
180,273
158,841
172,173
808,427
26,223
256,734
163,654
179,490
357,602
125,084
808,427
26,223
256,734
163,654
179,490
357,602
125,084
TOTAL - ASSETS
1,913,014
1,913,014
1,917,214
1,917,214
757,980
208,033
966,013
757,980
208,033
966,013
786,000
99,972
885,972
786,000
99,972
885,972
LIABILITIES
Deemed cost - Light Energia
Other provisions
Reconciliation of effective and nominal rates of the provision for income and social
contribution taxes:
Earnings before Income and Social Contribution Taxes (LAIR)
Combined income and social contribution tax rate
Income and social contribution taxes at statutory rates
Income and social contribution tax effect on permanent additions and exclusions
Income and social contribution tax effect on equity in the earnings of subsidiaries
Effect of offshore income and social contribution taxation
Deferred tax credits not recognized CVM 371/02 - Light S.A.
Tax incentives
Others
Income and social contribution tax on income
Current income tax and social contribution on income
Deferred income tax and social contribution on income
Consolidated
09/30/2010
09/30/2009
805,594
633,117
34%
34%
(273,902)
(215,260)
(13,984)
(7,070)
32,509
(91,335)
(26,890)
(1,540)
(9,787)
1,524
1,592
83
73
(282,200)
(321,787)
(171,514)
(110,686)
(282,200)
(182,746)
(139,041)
(321,787)
10. CONCESSION FINANCIAL ASSETS
Owing to its utility nature, distribution of electric power is governed by certain Utility
Concession Agreements and any subsequent amendments thereto, entered into by the
Union (Granting Authority - Grantor) and our subsidiary Light Serviços de Eletricidade
S.A. (Operator). These agreements generally contain provisions governing matters such
as follows:
 Which services the Operator must provide and to whom (i.e. consumer classes)
such services must be provided.
 These concession agreements contain a service level clause or provisions
establishing performance standards applicable to utility services, usually
addressing quality maintenance and improvement in connection with any
services provided to the public. Additionally, the Operator is required, upon
expiration of the concession, to return infrastructure assets in the same operating
conditions as they were handed over when the agreement was executed. In order
to satisfy and meet these obligations, investments are made on an ongoing basis
over the term of the concession. Therefore, some assets associated with the
concession contract may be replaced a number of times before the concession
expires.
 Once the concession expires, infrastructure assets are "reverted" (i.e. returned) to
the granting authority upon payment of certain compensation.
 Concession prices are fixed through a rate methodology set forth in each
concession agreement that is based on a parametric formula (Portions A and B),
and includes a review mechanism to ensure that the restated/escalated rates will
be sufficient to cover any costs, repay investments made and provide return on
the capital invested.
Based on the features of the electric power distribution agreement of the subsidiary,
management is of the opinion that the requirements for application of Accounting
Interpretation ICPC 01 - Concession Contracts, which interpretation provides guidelines
addressing how to account for concession of utility services to private operators, have
been successfully met in order to reflect the electric power distribution business,
comprising:
a) An estimated portion of any investments made and not repaid or amortized
before the concession expires, net of special obligations classified as financial
assets due to their nature as an unqualified right to receive cash or any other
financial asset directly from the granting authority.
b) A portion remaining after the financial asset was determined, net of any special
obligations classified as intangible assets because recovery of the same is
contingent upon the utility service being used.
The infrastructure handed over or built in connection with the power distribution
business, originally represented by power, plant and equipment and other intangible
asset items of the subsidiary, is recovered through two distinct cash flows, as follows:
a) a portion of the infrastructure is recovered through selling power distribution
services to consumers (monthly billing of power consumed/sold) during the term
of the concession; and
b) another portion is recovered by way of the compensation payable for revertible
assets upon expiration of the concession, which compensation will be paid
directly by the Granting Authority or any of its agents.
Management estimates that the compensation payable for the financial assets will be
made based on the not yet amortized portions of investments in revertible concession
infrastructure assets, determined at the cost of acquisition/construction, made for the
purpose of ensuring stable, continuously improved provision of utility services, net of
any special obligations. This compensation has been determined at transition date.
Below is a summary of transactions related to the balances of revertible assets
(concession assets):
Balance as of December 31, 2009
Additions
Write-offs
Balance as of September 30, 2010
354,784
30,213
(94)
384,903
11. OTHER RECEIVABLES
Parent Company
09/30/2010
12/31/2009
CURRENT
Advances to suppliers and employees
Property rental
Receivables of assets disposal
Public lighting fee
Expenditures to refund
Subsidy to low-income segment (a)
Other amounts receivable - ILP
Other
Total
24
2,040
2,064
31
18,634
1,547
20,212
-
-
NON-CURRENT
Assets and rights for disposal
Other
Total
Consolidated
09/30/2010
12/31/2009
37,612
228
42,940
14,685
16,279
12,722
124,466
20,395
425
25,119
10,779
15,256
18,634
6,642
97,250
7,226
639
7,865
7,229
1,496
8,725
12. INVESTMENTS
Parent Company
09/30/2010
12/31/2009
Consolidated
09/30/2010
12/31/2009
Accounted for under the equity method:
Light SESA
Light Energia S.A.
Light Esco Prestação de Serviços S.A.
Lightger S.A. (a)
LightCom
Itaocara Energia (a)
Axxiom Soluções Tecnológicas S.A.
Light Soluções em Eletricidade Ltda (a)
Subtotal
2,446,526
808,002
38,740
34,850
2,242
14,388
2,071
50
3,346,869
2,699,254
747,962
27,825
25,772
11,115
50
3,511,978
-
-
Goodwill from future profitability
Other permanent investments
SubTotal
Total
2,035
2,035
3,348,904
1,169
1,169
3,513,147
17,586
17,586
17,586
20,388
20,388
20,388
(a) Pre-operational Company
INFORMATION ON SUBSIDIARIES AND JOINT VENTURES
Ownership
interest (%)
09/30/2010
Light SESA
Light Energia
Light Esco
LightCom
Light Soluções
Instituto Light
Itaocara Energia
Light Ger
Axxiom S.A.
Paid-up
capital
100
100
100
100
100
100
100
100
51
Ownership
interest (%)
12/31/2009
Light SESA
Light Energia
Light Esco
Light Soluções
Instituto Light
Itaocara Energia
Light Ger
Paid-up
capital
100
100
100
100
100
100
100
Shareholders'
equity
2,082,365
77,440
7,584
1,000
50
300
20,794
35,743
3,672
Shareholders'
equity
2,082,365
77,422
7,584
50
300
17,294
23,791
Dividends
receivable
2,699,254
747,962
27,825
50
11,115
25,772
(125,510)
(26,833)
(3,358)
-
Income / loss
for the period
2,446,526
808,002
38,740
2,242
50
14,388
34,850
2,071
Dividends
received
(481,564)
(18,074)
-
Total
Assets
456,061
60,040
10,915
1,242
(227)
3
(113)
Additional Dividends
Paid
(169,729)
-
7,843,144
766,727
71,495
14,745
69
2
14,555
39,178
3,709
Income for
the year
541,589
84,763
14,141
(617)
4,406
Total
Assets
8,419,932
1,616,010
58,753
69
2
129,530
32,905
CHANGES IN INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES
12/31/2009
Light SESA
Light Energia
Light Esco
LightCom
Light Ger
Light Soluções
Instituto Light
Itaocara Energia
Axxiom S.A.
2,699,254
747,962
27,825
25,772
50
11,115
-
Capital
Increase
1,000
37,891
3,500
1,941
Sale of
interest
(28,816)
-
Dividends
paid
(305,785)
-
Proposed
dividends
(403,004)
-
Equity
pick-up
Other
243
456,061
60,040
10,915
1,242
3
(227)
(113)
09/30/2010
2,446,526
808,002
38,740
2,242
34,850
50
14,388
2,071
On August 3, 2010, Light S.A.’s Board of Directors approved to sell 49% common,
registered shares of Lightger to Companhia Energética de Minas Gerais – CEMIG,
corresponding to 25,939,013 shares, in the amount of R$28,851, referring to the
shareholders’ equity recorded in the Financial Statements drawn up on March 31, 2010.
13. PROPERTY, PLANT AND EQUIPMENT
Historical cost
Generation
Transmission
Distribution
Administration
Sales
In service
2,656,827
57,601
47,416
253,220
9,785
3,024,849
Generation
Administration
In progress
154,982
103,238
258,220
Total
3,283,069
Consolidated
09/30/2010
Accumulated
depreciation
Net value
(1,421,203)
(41,338)
(35,870)
(169,987)
(7,402)
(1,675,800)
(1,675,800)
12/31/2009
Net value
1,235,624
16,263
11,546
83,233
2,383
1,349,049
1,281,715
16,770
15,336
91,141
2,305
1,407,267
154,982
103,238
258,220
112,751
80,550
193,301
1,607,269
1,600,568
The statement below summarizes the changes in property, plant and equipment:
Consolidated
Balance as of
12/31/2009
Additions
Write offs
Inter-account
transfers
Balance as of
09/30/2010
PROPERTY, PLANT AND EQUIPMENT IN SERVICE
Cost
Land
Reservoir, dams and water mains
Buildings, works and improvements
Machinery and equipment
Vehicles
Fixtures and furnishings
Total Property, Plant and Equipment in Service - Cost
(-) Depreciation
Reservoir, dams and water mains
Buildings, works and improvements
Machinery and equipment
Vehicles
Fixtures and furnishings
Total Property, Plant and Equipment in Service - Depreciation
105,803
1,247,913
271,021
1,240,560
32,497
127,130
3,024,924
2,474
22
591
3,087
(1,331)
(1,320)
(71)
(440)
(3,162)
-
105,803
1,246,582
273,495
1,239,262
32,426
127,281
3,024,849
(734,988)
(147,937)
(616,922)
(24,857)
(92,953)
(1,617,657)
(17,053)
(5,965)
(28,061)
(2,508)
(7,270)
(60,857)
1,330
2
553
70
759
2,714
-
(750,711)
(153,900)
(644,430)
(27,295)
(99,464)
(1,675,800)
PROPERTY, PLANT AND EQUIPMENT IN PROGRESS
Reservoir, dams and water mains
Buildings, works and improvements
Machinery and equipment
Vehicles
Fixtures and furnishings
Studies and frojects
Total Property, Plant and Equipment in Progress
TOTAL PROPERTY, PLANT AND EQUIPMENT
43,416
29,866
81,300
7,497
14,530
16,692
193,301
13,164
10,742
24,668
2,191
896
13,731
65,392
(473)
(473)
-
56,580
40,608
105,968
9,688
15,426
29,950
258,220
1,600,568
7,622
(921)
-
1,607,269
(i) Subsidiary Light SESA does not hold any Union-owned resources and rights in its
assets.
14. INTANGIBLE ASSETS
Consolidated
Historic cost
Intangible
Concession right of use
Other
In Use
5,799,620
415,253
6,214,873
Concession right of use
Other
In progress
815,040
87,695
902,735
TOTAL INTANGIBLE (1)
7,117,608
09/30/2010
Accumulated
amortization
(3,198,563)
(360,110)
(3,558,673)
(3,558,673)
12/31/2009
Net Value
Net Value
2,601,057
55,143
2,656,200
2,667,560
77,070
2,744,630
815,040
87,695
902,735
489,639
188,711
678,350
3,558,935
3,422,980
(1) Net of special obligations comprising (i) contributions made by the Union, states,
municipalities and consumers, (ii) any unqualified donations (i.e. not subject to any
consideration in benefit of the donor), and allowances intended as investments to
be made toward concession of the electric power distribution utility.
A total amount of R$7,557 (R$41,295 in 2009) was carried over to intangible assets in
the third quarter of 2010 by way of interest capitalization and as a contra-entry to the
financial income.
The infrastructure used by subsidiary Light SESA is associated with the distribution
service, and therefore cannot be removed, disposed of, assigned, conveyed, or
encumbered as mortgage collateral without the prior written authorization of the
Granting Authority, which authorization, if given, is regulated by Resolution ANEEL
No. 20/99.
It is the responsibility of ANEEL in its capacity as regulatory agency to determine the
estimated economic useful lives of each piece of distribution infrastructure assets for
pricing purposes, as well as for the purpose of calculating the amount of the relevant
compensation payable upon expiration of the concession term. This estimate is revised
from time to time, represents the best estimate concerning the assets' useful lives, and is
accepted in the market as appropriate for accounting and regulatory purposes.
The management of Light SESA is of the opinion that amortization of intangible assets
must be consistent with the return expected on each infrastructure asset, via the
applicable rates. Thus, intangible assets are amortized over the expected length of such
return, limited to the term of the concession. As a result of this amortization method, the
total amount of intangible assets will be amortized at all times in a non-linear fashion.
Below is a summary of changes in the intangible assets:
CONSOLIDATED
Balance as of
12/31/2009
In Service
Concession right of use
Other
Total Intangible in Service
(-) Depreciation
Concession right of use
Other
Total Intangible in Service - Depreciation
In Progress
Concession right of use
Other
Total Intangible in Progress
TOTAL INTANGIBLE ASSETS (I)
Additions
Write offs
Inter-account
transfers
Balance as of
09/30/2010
5,691,229
413,090
6,104,319
146,269
2,163
148,432
(7,758)
(7,758)
(30,120)
(30,120)
5,799,620
415,253
6,214,873
(3,023,643)
(336,184)
(3,359,827)
(180,953)
(23,926)
(204,879)
6,033
6,033
-
(3,198,563)
(360,110)
(3,558,673)
605,289
73,199
678,488
352,481
17,159
369,640
-
(142,730)
(2,663)
(145,393)
815,040
87,695
902,735
3,422,980
313,193
(1,725)
(175,513)
3,558,935
15. SUPPLIERS
Parent Company
09/30/2010
12/31/2009
CURRENT
Sales within the scope of CCEE
Electric network usage charges
System service charges
Free energy – refund to generation companies (a)
Electric power auctions
Itaipu binational
UTE Norte Fluminense
Supplies and services
Total
494
494
6,348
6,348
Consolidated
09/30/2010
12/31/2009
17,590
46,894
2,216
54,185
128,997
86,367
65,443
401,692
98,290
499,982
21,813
49,024
7,284
54,185
127,704
90,837
67,688
418,535
145,646
564,181
a) Free Energy – Reimbursement to Generation Companies
At a meeting held December 15, 2009, the executive board of ANEEL approved the
methodology and procedures applicable to determining the balances of Free Energy and
Revenue Losses incurred by generation and distribution utility companies following
expiration of the Extraordinary Rate Review (RTE) applicable to power supply rates.
However, Resolution No. 387 as of December 15, 2009, published January 12, 2010,
concluded the process of computing the Revenue Loss and Free Energy closing
balances, and also determined the amounts of any reimbursement operators should pay
each other, as applicable, which were under validation process on December 31, 2010.
Energy supply, grid charge, materials and service balances have an average settlement
period of up to 90 days.
16. LOANS, FINANCING AND FINANCIAL CHARGES
Principal
Financing Entity
Current
Non-current
TN - Par Bond
65,937
TN - Collateral - Par Bond
(39,497)
TN - Discount Bond
46,009
TN - Collateral - Discount Bond
(27,734)
TN - C. Bond
5,604
16,814
TN - Debit. Conv.
6,278
6,278
TN - Bib
204
408
BNDES - Import
KFW III , IV, and V - Tranche A/B/C
659
TOTAL FOREIGN CURRENCY
12,745
68,215
Eletrobrás
CCB Bradesco
BNDES - FINEM
BNDES - FINEM direct
BNDES - FINEM + 1
BNDES - FINEM direct PSI
Working capital - ABN Amaro
Working capital- Santander
Banco Real
BNDES - PROESCO
RGR
Sundry banking warranties
TOTAL DOMESTIC CURRENCY
SWAP
564
82,614
7,903
7,903
2,807
695
370
102,856
-
OVERALL TOTAL
115,601
2,174
450,000
247,846
106,217
106,217
54,089
80,000
3,387
1,049,930
1,118,145
Consolidated
Charges
Current
Non-current
1,873
352
842
100
2
2
3,171
1
43,642
1,353
2,034
2,263
540
554
8
246
125
50,766
-
7,470
61,407
Total
09/30/2010
12/31/2009
67,810
68,641
(39,497)
(35,060)
46,361
47,443
(27,734)
(24,597)
23,260
26,364
12,656
16,185
614
852
446
661
1,439
84,131
101,713
2,739
493,642
331,813
116,154
116,383
57,436
80,554
4,090
370
246
125
1,203,552
3,809
458,381
394,139
59,806
59,811
35,284
82,601
1,812
246
194
1,096,083
1,402
8,872
5,558
1,402
1,296,555
1,203,354
The statement below summarizes the contractual terms and conditions applicable to our
Loans as of September 30, 2010:
Principal Amortization
Date of
Financing Entity
signature
TN - Par Bond
4/29/1996
TN - Caução - Par Bond
4/29/1996
TN - Discount Bond
4/29/1996
TN - Caução - Discount Bond
4/29/1996
TN - C. Bond
4/29/1996
TN - Debit. Conv.
4/29/1996
TN - Bib
4/26/1996
KFW III , IV, e V - Tranche A/B/C 11/03/2000
Eletrobrás
CCB Bradesco
BNDES - FINEM
BNDES - FINEM direto
BNDES - FINEM + 1
BNDES - FINEM direto PSI
Working capital - ABN Amro
BNDES - PROESCO
Banco Real
Sundry
10/18/2007
11/05/2007
11/30/2009
11/30/2009
11/30/2009
9/3/2010
12/12/2008
5/25/2010
Currency
US$
US$
US$
US$
US$
US$
US$
US$
UFIR
CDI
TJLP
TJLP
TJLP
CDI
TJLP
Interest Rate
p.a.
6%
U$ Treasury
Libor + 13/16
U$ Treasury
8%
Libor + 7/8
6%
Libor + 0.65%
Beginning
2024
2024
2024
2024
2004
2004
1999
2003
5%
CDI + 0.85%
TJLP + 4.3%
TJLP + 2.58%
TJLP + 1% + 2.58%
4.50%
CDI + 0.95%
TJLP + 2.5%
16.77%
2012
2009
2011
2011
2011
2010
2009
2010
Payment
Lump sum
Lump sum
Lump sum
Lump sum
Half-yearly
Half-yearly
Half-yearly
Half-yearly
Monthly and
quarterly
Yearly
Monthly
Monthly
Monthly
Monthly
Yearly
Monthly
Monthly
Remaining
Installments
1
1
1
1
8
4
6
1
End
2024
2024
2024
2024
2014
2012
2013
2010
between 2 and 120
6
51
72
72
101
1
65
21
2013 to 2017
2017
2014
2017
2017
2019
2014
2014
2012
Working capital financing with Banco Real (ABN Amro) maturing in August 2010, in
the amount of R$80,000, was renewed with Banco Santander (new controlling
shareholder of Banco Real) with same amount and under same contractual conditions to
mature on September 3, 2014.
On September 27, 2010, R$2,033 were released to Light Esco through Proesco special
direct credit facility, in order to implement the energy efficiency project.
In addition to the collaterals indicated above, loans are guaranteed by receivables in the
approximate amount of R$52,395.
In September 2010, forward swap operations have been contracted with HSBC for
R$150,000 out of R$450,000 from CCB Bradesco to mature in October 2017 (straddle
operations with maturities of principal and interest rates related to this debt).
First operation will begin in October 2010 to mature October 2011 (straddle operations
with CCB Bradesco’s annual interest rates), Light in long position at 100% CDI +
0.85% p.a and in short position at 101.9% CDI + (TJLP – 6%).
The principal of long-term loans and financing matures as follows (excluding financial
charges), as of September 30, 2010:
Local Currency
Consolidated
09/30/2010
Foreign Currency
Total
2011
2012
2013
2014
2015
2016
after 2016
TOTAL
32,191
203,857
203,843
262,952
120,549
120,087
106,451
1,049,930
5,941
8,948
5,808
2,802
44,716
68,215
38,132
212,805
209,651
265,754
120,549
120,087
151,167
1,118,145
Total (current and non-current)
1,152,786
80,960
1,233,746
09/30/2010
(5.96)
4.81
(5.39)
2.09
2.61
2.62
09/30/2009
(8.89)
(5.06)
(7.70)
(0.37)
2.18
2.19
In percentage terms, the variation of major foreign currencies and economic ratios in the
period, which are used to adjust loans, financing and debentures, was as follows in the
periods:
USD
EUR
UMBNDES
IGP-M
CDI
SELIC
Covenants
The funding of CCB Bradesco, the loans with ABN Amro and with BNDES FINEM,
classified as current and non-current, requires that the Company maintain certain debt
ratios and interest coverage. In the period ended September 30, 2010, the Company and
its subsidiaries are in compliance with all required debt covenants.
17. DEBENTURES AND FINANCIAL CHARGES
Principal
Current
Non Current
Financing Entity
Debentures 1st Issue
Debentures 4th Issue
Debentures 5th Issue
Debentures 6th Issue
Consolidated
Charges
Total
Current
09/30/2010
12/31/2009
-
LOCAL CURRENCY - TOTAL
19
68,221
298,009
72
818,480
-
366,249
818,552
20,342
11,699
91
907,043
309,708
8,057
107
955,598
298,409
32,041
1,216,842
1,262,171
Contractual conditions of debentures on September 30, 2010 are as follows:
Financing Entity
Debentures 4th Issue
Debentures 5th Issue
Debentures 6th Issue
Date of
Signature
06/30/2005
01/22/2007
06/01/2009
Currency
Interest Rate
p.a.
Beginning
TJLP
CDI
CDI
TJLP + 4%
CDI + 1.50%
115% of CDI
2009
2008
2011
Principal Amortization
Remaining
Payment
Installments
Monthly
Quarterly
Lump Sum
57
14
1
End
2015
2014
2011
Total principal amount is represented net of debentures issue costs, as provided for in
CVM Resolution 556/08. These costs are detailed in the table below:
Issue
Debentures 1st Issue
Debentures 4th Issue
Debentures 5th Issue
Debentures 6th Issue
TOTAL
09/30/2010
Value to be
recognized
Incurred
value
7,447
6,649
3,300
17,396
21
5,799
1,991
7,811
Total
Cost
7,468
12,448
5,291
25,207
12/31/2009
Total
Cost
1,070
7,468
12,448
5,291
26,277
The portions related to the principal of long-term debentures have the following
maturities (excluding financial charges) on September 30, 2010:
Local Currency
09/30/2010
2011
2012
2013
2014
2015
TOTAL
17,060
198,240
268,238
335,006
8
818,552
Covenants
Classified in the current and non-current, the 5th and 6th Issue of Debentures require the
maintenance of indebtedness indexes and coverage of interest rates. In the period ended
September 30, 2010, the Company and its subsidiaries complied with all the covenants
required.
18. REGULATORY CHARGES – CONSUMER’S CONTRIBUTION
Consolidated
09/30/2010
12/31/2009
CURRENT
Fuel usage account quota – CCC
Energy development account quota – CDE
Reversal global reserve quota – RGR
Incentive Program to Electric Power Alternative Sources – PROINFA
Charges for capacity and emergency acquisition
18,397
17,182
5,182
8,926
73,169
122,856
4,298
17,173
5,359
10,792
73,169
110,791
19. CONTINGENCIES
Light S.A. and its subsidiaries are party in tax, labor and civil lawsuits and regulatory
proceedings in several courts. Management periodically assesses the risks of
contingencies related to these proceedings, and based on the legal counsel’s opinion it
records a provision when unfavorable decisions are probable and whose amounts are
quantifiable. In addition, the Company does not record assets related to lawsuits with a
less-than-probable chance of success, as they are considered uncertain.
Provisions for contingencies are as follows:
Balance as of December 31, 2009
Additions
Restatements
Write-offs / payments
Write-offs / reversals
Labor
163,655
11,812
(5,282)
(247)
Civil
252,149
Consolidated
Tax
166,426
Other
87,123
Total
669,353
31,956
10,057
(46,292)
(72,173)
1,578
15,437
-
36,120
4,285
(26,944)
(53,381)
81,466
29,779
(78,518)
(125,801)
Balance as of September 30, 2010
169,938
175,697
183,441
47,203
576,279
Escrow deposits
Balance as of September 30, 2010
16,243
25,862
40,354
1,655
84,114
19.1 Labor Contingencies
There are approximately 3,585 labor-related legal proceedings in progress (3,680 on
December 31, 2009) in which the Company and subsidiaries are the defendants. These
labor proceedings mainly involve the following matters: overtime; hazardous work wage
premium; equal pay; pain and suffering; subsidiary/joint liability of employees from
outsourced companies; difference of 40% fine of FGTS (Government Severance
Indemnity Fund for Employees) derived from the adjustment due to understated
inflation and overtime.
19.2 Civil Contingencies
The Company and its subsidiaries are defendants in approximately 38,642 civil legal
proceedings (39,506 on December 31, 2009), of which 17,892 are in the state and
federal courts referring to Civil Proceedings (14,947 on December 31, 2009), among
which those claims that can be accurately assessed amounting to R$457,600 (R$747,873
on December 31, 2009) and 20,507 are in Special Civil Courts (R$24,559 on December
31, 2009), with total claims amounting to R$315,187 (R$377,124 on December 31,
2009).
Civil Contingencies
Accrued Value (probable loss)
09/30/2010
a) Civil proceedings
b) Special civil court
c) "Cruzado" Plan
Total
106,670
28,001
41,026
175,697
12/31/2009
124,576
29,555
98,018
252,149
a) The Provision for civil proceedings comprises lawsuits in which the Company is the
defendant and it is probable the claim will result in a loss in the opinion of the
respective attorneys. The claims mainly involve alleged moral and property damage
caused by the company’s overpowering behavior towards measures against network
irregularities, as well as consumers challenging the amounts paid.
The Company is also party to civil proceedings that Management believes that risk of
loss are less than probable, based on the opinion of its legal counsels. Therefore, no
provision was established. The amount, currently assessed, represented by these
claims is R$298,237 (R$480,060 on December 31, 2009). The difference seen this
quarter is due to a revision of the 11,559 civil claims assessed by partner law firms.
b) Lawsuits in the Special Civil Court are mostly related to matters regarding consumer
relations, such as improper collection, undue power cut, power cut due to
delinquency, network problems, various irregularities, bill complaints, meter
complaints and problems with ownership transfer. There is a limit of 40 minimum
monthly wages for claims under procedural progress at the Special Civil Court.
Accruals are based on the moving average of the last 12 months of condemnation
amount.
c) In the last quarter, Light obtained a favorable court decision at the Superior Court of
Justice – STJ, final decision on the proceeding No. 1995.001.073862-2 against CSN
which called into question the legality of tariff adjustment authorized by DNAEE
during price freeze period (Cruzado Plan). Such decision allowed the Company to
reverse accrued amounts of R$61,735 against operating costs and expenses.
19.3 Tax Contingencies
The provisions established for tax contingencies are as follows:
Tax Contingencies
Accrued Value (probable loss)
09/30/2010
PIS/COFINS – RGR and CCC
INSS – tax deficiency notice
INSS – quarterly
ICMS
CIDE
Other
Total
12/31/2009
12,948
40,519
22,290
98,367
4,937
4,380
183,441
8,561
39,291
21,504
88,039
4,792
4,239
166,426
After the enactment of Law 11,941/2009, which authorized the payment of federal tax
debts by installments, Light SESA decided to include the debts from certain legal and
administrative proceedings in said installment program. It is worth mentioning that the
adhesion to said installment program has already been granted by Brazilian Federal
Revenue Office, according to the electronic message sent to the Company on December
12, 2009, and currently, the Company awaits the consolidation of said debts.
The Company and its subsidiaries are parties to tax, regulatory and legal proceedings in
which Management, based on the opinion of its legal counsels, believes the risks of loss
are less than probable, and for which no provision was recorded. Currently, the
quantifiable amount of these proceedings is R$953,900 (R$1,156,600 on December 31,
2009).
The tax proceedings, deemed as possible loss, had effects in the quarter:
(i) ICMS losses - ICMS collection (from January 1999 to December 2003) since Light
has not reversed the alleged credit that has been utilized due to electricity purchased in
the State of Rio de Janeiro, and subsequently lost.The Mandatory Appeal of the State
Government was granted partial relief, reducing the tax assessment from R$506,000 to
R$251 (historic amount).
(ii) ICMS TUSD and TUST – the levy of ICMS is challenged in five tax-deficiency
notices, related to the charges paid to Light SESA by other electricity concessionaires,
by force of mandatory availability (legal estimate) of their distribution and transmission
network. In four tax-deficiency notices, Light obtained a favorable final court decision
and assessments of R$31,206 have been cancelled. Only one of the tax-deficiency
notices is pending judgment on the Voluntary Appeal. The amount involved in this taxdeficiency notice is R$311.
(iii) ICMS for Low-Income Consumers – levy of ICMS and fine since Light has not
submitted to taxation the revenue deriving from “Global Reversal Reserve”, received as
additional tariff charged to low-income consumers from May 2002 to July 2004. Light’s
challenge was rejected, reason that a voluntary appeal was filed. The amount involved
on September 30, 2010 was R$69,700.
(iv) PIS/COFINS transfer – Up to September 30, 2010, 241 suits were filed against the
Company by commercial clients questioning the PIS and COFINS transfer onto
electricity price, claiming the reimbursement of all amounts paid improperly. On August
22, 2010, the Superior Court of Justice judged a leading case of the electricity sector,
deeming as legal PIS/COFINS transfer to electricity bills. Considering the former court
decisions favorable to distribution companies, the chances of loss, which were possible,
now are remote.
(v) COFINS Spontaneous Confession – It refers to a lawsuit in which Light discusses
the unenforceability of default charges due to payment in arrears of COFINS. Light
obtained favorable decision in the lower and appellate courts. However, the Superior
Court of Justice granted relief to the Special Appeal filed by federal government. In
view of this new scenario, Light made a court deposit to suspend the enforceability of
credit and altered the chances of losses from possible to probable and the amount of
R$4,387 have been accrued.
(vi) Land Occupancy Fee (Municipality of Paraíba do Sul) – The municipality was
charging Light SESA the amount of R$3,213 as Occupancy Inspection Fee and
Permanence in Areas, Streets and public roads due to implementation of the Company’s
electricity poles in Paraíba do Sul. On August 9, 2010, Light’s motions to stay execution
were granted relief, dismissing the execution in view of the annulment of the overdue
federal liabilities certificate. In view of this favorable court decision, the chances of
loss, which were possible, now are remote.
19.4 Other Contingencies
a) Administrative Regulatory Contingencies
This quarter, there were no regulatory lawsuits and current lawsuits did not record
significant developments.
20. POST-EMPLOYEMENT BENEFITS
Light Group’s companies sponsor Fundação de Seguridade Social – BRASLIGHT, a
nonprofit closed pension entity, whose purpose is to provide retirement benefits to the
Company’s employees and pension benefits to their dependents.
BRASLIGHT was incorporated in April 1974 and has four plans - A, B, C and D –
established in 1975, 1984, 1998 and 2010, respectively, with about 96% of the active
participants of the other plans having migrated to plans A and B.
Current plans in effect include defined-benefit- (Plans A and B), mixed-benefit- (Plan
C), and defined-contribution plans (Plan D). For details on said plans see Note 21 to the
financial statements for the year ended December 31, 2010.
a) Below is a summary of the Company's liabilities involving pension plan benefits as
stated on its balance sheet:
Current
Contractual debt with pension fund
Other
Total
93,250
390
93,640
09/30/2010
Non-current
869,468
869,468
Total
12/31/2009
Non-current
Current
962,718
390
963,108
95,044
95,044
861,386
861,386
Total
956,430
956,430
The statement below summarizes the changes in agreement liabilities in quarters ended
September 30, 2010 and 2009:
Total
Consolidated
Contractual liabilities on 12/31/2009
Amortization in the period
Restatements in the period
Transfer to current
Contractual liabilities on 9/30/2010
Current
Non-current
956,430
95,044
861,386
(69,555)
75,843
-
(69,555)
38,830
28,931
37,013
(28,931)
962,718
93,250
869,468
21. OTHER DEBTS
Parent Company
09/30/2010
12/31/2009
CURRENT
Advances from clients
Compensation for use of water resources
Energy Research Company – EPE
National Scientific and Technological Development Fund – FNDCT
Energy Efficiency Program – PEE
Research and Development Program – P&D
Public lighting fee
Other debits - reimbursements to consumers
Other
Total
NON-CURRENT
Provision for success fees
Reversal reserve
Use of Public Asset - UBP (a)
Other
Total
Consolidated
09/30/2010
12/31/2009
1,786
1,786
1,524
1,524
8,506
3,563
924
1,847
69,295
44,199
54,057
32,516
214,907
8,691
4,293
1,038
2,173
76,012
49,090
51,402
11,622
31,707
236,028
-
-
13,275
69,933
124,775
3,792
211,775
13,275
69,933
115,651
9,836
208,695
22. RELATED-PARTY TRANSACTIONS
Light S.A. has as controlling group the Companhia Energética de Minas Gerais –
CEMIG, Andrade Gutierrez Concessões, Luce Empreendimentos e Participações S.A.
and Rio Minas Energia Participações S.A (RME) – company controlled by Equatorial
Energia (see Note 21).
Interest in operating subsidiaries are outlined in the Note 1.
Below, a summary of related-party transactions occurred in the quarters ended
September 30, 2009 and 2010:
C o ntra c ts with the s a m e gro up
R e la tio ns hip
with Light S .A.
(Agre e m e nt o bje c tive s a nd c ha ra c te ris tic s )
Ite m
1
S tra te gic a gre e m e nt
P urc ha s e a gre e m e nt o f e le c tric po we r be twe e n Light S ES A a nd C EM IG
C EM IG (pa rty o f the
c o ntro lling gro up)
2
S tra te gic a gre e m e nt
P urc ha s e a gre e m e nt o f e le c tric po we r be twe e n Light S ES A a nd C EM IG
C EM IG (pa rty o f the
c o ntro lling gro up)
3
S tra te gic a gre e m e nt
S a le a gre e m e nt o f e le c tric po we r be twe e n Light Ene rgia a nd C EM IG
C EM IG (pa rty o f the
c o ntro lling gro up)
4
S tra te gic a gre e m e nt
C o lle c tio n o f dis tributio n s ys te m us a ge c ha rge s be twe e n Light S ES A a nd C EM IG
C EM IG (pa rty o f the
c o ntro lling gro up)
5
6
7
S tra te gic a gre e m e nt
C o m m itm e nt to the ba s ic e le c tric ne two rk us a ge c ha rge s be twe e n Light S ES A a nd
C EM IG
S tra te gic a gre e m e nt
C o m m itm e nt to the ba s ic e le c tric ne two rk us a ge c ha rge s be twe e n Light Ene rgia
a nd C EM IG
S tra te gic a gre e m e nt
S a le c o m m ittm e nt o f e le c tric po we r be twe e n Light Ene rgia a nd C EM AR
*
C EM IG (pa rty o f the
c o ntro lling gro up)
C EM IG (pa rty o f the
c o ntro lling gro up)
Equa to ria l (pa rty o f the
c o ntro lling gro up)
A s s e ts
0 9 / 3 0 / 2 0 10
12 / 3 1/ 2 0 0 9
-
C o ns o lida te d
Lia b ilit ie s
R e v e nue
0 9 / 3 0 / 2 0 10
12 / 3 1/ 2 0 0 9
0 9 / 3 0 / 2 0 10
09/30/2009
-
6,436
8,492
-
E xp e n s e s
0 9 / 3 0 / 2 0 10
09/30/2009
-
54,328
75,457
-
-
123
-
-
-
922
-
2,578
2,528
-
-
15,944
16,673
-
-
384
180
-
-
1,722
1,531
-
-
-
-
-
-
1,638
2,248
13,611
11,315
13
13
-
-
90
86
-
-
1,169
1,106
-
-
6,951
6,709
-
-
-
-
394,139
-
-
27,015
-
-
-
-
446
-
-
-
(293)
-
-
-
8,057
-
-
-
997
-
-
4,090
1,812
-
-
115
72
-
-
91
107
-
-
9,609
59
-
-
116,154
59,806
-
-
5,169
-
-
-
116,383
59,811
-
-
5,591
-
-
-
57,436
35,284
-
-
1,455
-
-
-
963,108
956,430
-
-
75,841
42,765
Lo a ns
F INEM
B NDES
8
331,813
Lo a ns
B NDES
C re dit F a c ility
9
Lo a ns
De be nture s 1s t is s ue - No n-c o nve rtible
B NDES
10
Lo a ns
B NDES
11
P ró Es c o a nd Ene rgy Effic ie nc y P ro je c t
Lo a ns
De be nture s 4th is s ue - C o nve rtible
B NDES
12
Lo a ns
C re dit fa c ility - Dire c t
B NDES
13
Lo a ns
C re dit fa c ility - Dire c t + 1%
B NDES
14
Lo a ns
C re dit fa c ility - Dire c t P S I
B NDES
15
16
P e ns io n P la n
F unda ç ã o de S e gurida de S o c ia l (S o c ia l S e c urity F o unda tio n) - B R AS LIGHT
B R AS LIGHT (pa rty o f the
c o ntro lling gro up)
* Equatorial Energia S.A.’s subsidiary.
Below, a summary of agreements executed with related parties:
Ite m
C o ntra c ts with the s a m e gro up
R e la tio ns hip with Light S .A.
M a turity da te
o r te rm
Origina l a m o unt
C o nditio ns fo r
te rm ina tio n o r
e nd
R e m a ining
ba la nc e
Agre e m e nt C o nditio ns
09/30/2010
(Agre e m e nt o bje c tive s a nd c ha ra c te ris tic s )
Da te
1
S tra te gic a gre e m e nt
P urc ha s e a gre e m e nt o f e le c tric po we r be twe e n Light
S ES A a nd C EM IG
C EM IG (pa rty o f the
c o ntro lling gro up)
2
S tra te gic a gre e m e nt
P urc ha s e a gre e m e nt o f e le c tric po we r be twe e n Light
S ES A a nd C EM IG
C EM IG (pa rty o f the
c o ntro lling gro up)
3
4
5
6
S tra te gic a gre e m e nt
S a le a gre e m e nt o f e le c tric po we r be twe e n Light Ene rgia
a nd C EM IG
S tra te gic a gre e m e nt
C o lle c tio n o f dis tributio n s ys te m us a ge c ha rge s be twe e n
Light S ES A a nd C EM IG
S tra te gic a gre e m e nt
C o m m itm e nt to the ba s ic e le c tric ne two rk us a ge c ha rge s
be twe e n Light S ES A a nd C EM IG
S tra te gic a gre e m e nt
C o m m itm e nt to the ba s ic e le c tric ne two rk us a ge c ha rge s
be twe e n Light Ene rgia a nd C EM IG
S tra te gic a gre e m e nt
S a le c o m m ittm e nt o f e le c tric po we r be twe e n Light Ene rgia
7
a nd C EM AR
C EM IG (pa rty o f the
c o ntro lling gro up)
J a n/2006
De c /2038
614,049
J a n/2010
De c /2039
37,600
156,239
C EM IG (pa rty o f the
c o ntro lling gro up)
-
C EM IG (pa rty o f the
c o ntro lling gro up)
-
C EM IG (pa rty o f the
c o ntro lling gro up)
-
Equa to ria l (pa rty o f the
c o ntro lling gro up)
30% o f re m a ining
ba la nc e
470,444
30% o f re m a ining
ba la nc e
36,680
J a n/2005
De c /2013
N/A
No v/2003
Unde te rm ine d
N/A
De c /2002
Unde te rm ine d
N/A
De c /2002
Unde te rm ine d
N/A
J a n/2005
De c /2013
N/A
61,214
*
P ric e e s ta blis he d in the
re gula te d m a rke t
P ric e e s ta blis he d in the
re gula te d m a rke t
59,368
P ric e e s ta blis he d in the
re gula te d m a rke t
384
P ric e e s ta blis he d in the
re gula te d m a rke t
1,638
P ric e e s ta blis he d in the
re gula te d m a rke t
13
P ric e e s ta blis he d in the
re gula te d m a rke t
P ric e e s ta blis he d in the
re gula te d m a rke t
23,709
Lo a ns
F INEM
B NDES
No v/2007
S e p/2014
N/A
739,148
8
TJ LP + 4.3% p.a .
331,813
Lo a ns
9
C re dit F a c ility
B NDES
M a r/1999
Apr/2010
N/A
14,147
B NDES ba s ke t + 4% p.a .
-
Lo a ns
10
De be nture s 1s t is s ue - No n-c o nve rtible
B NDES
J a n/1998
J a n/2010
N/A
105,000
TJ LP + 4% p.a .
-
Lo a ns
11
B NDES
P ró Es c o a nd Ene rgy Effic ie nc y P ro je c t
Lo a ns
4,428
B NDES
12
13
Oc t/2014
N/A
J un/2005
J un/2015
N/A
767,252
De be nture s 4th is s ue - C o nve rtible
Lo a ns
C re dit fa c ility - Dire c t
De c /2008
B NDES
4,090
TJ LP + 2.5% p.a .
TJ LP + 4% p.a .
91
De c /2009
Apr/2017
N/A
114,510
TJ LP + 2.58% p.a .
116,154
Lo a ns
14
C re dit fa c ility - Dire c t + 1%
B NDES
De c /2009
Apr/2017
N/A
114,510
TJ LP + 1% + 2.58% p.a .
116,383
Lo a ns
15
C re dit fa c ility - Dire c t P S I
B NDES
De c /2009
S e p/2019
N/A
57,125
4.5% p.a .
57,436
P e ns io n P la n
16
F unda ç ã o de S e gurida de S o c ia l (S o c ia l S e c urity
F o unda tio n) - B R AS LIGHT
B R AS LIGHT (pa rty o f the
c o ntro lling gro up)
J un/2001
535,052
J un/2026
N/A
IP C A+ 6% p.a
963,108
* Equatorial Energia S.A.’s subsidiary.
Related-party transactions have been executed under usual market conditions.
MANAGEMENT COMPENSATION
Policy regarding compensation of the Board of Directors, Executive Board, Fiscal
Council and board committees.
Pro-rata share of each component to the aggregate compensation for 2010.
Board of Directors
Fixed Remuneration:
Variable Remuneration:
Board of Executive Officers
Fixed Remuneration:
Variable Remuneration:
Outros
Fiscal Council
Fixed Remuneration:
Variable Remuneration:
100%
100%
100%
-
Compensation paid by the Company to the Board of Directors, Executive Board, and
Fiscal Council in the third quarter of 2010:
Consolidated
2010
Number of members
Board of
Directors
22
Annual fixed compensation
Salary or pro-labore
Direct and indirect benefits
Compensation for participation in Committee
Other
Variable compensation
Bonus
Profit sharing
Compensation for attending meetings
Commissions
Other (ILP)
Post-employment benefits
Benefits from the assignment of office
Share-based compensation
Total compensation per body
Fiscal Council
Board of
Executive
Offcers
Total
5
7
34
272
272
272
92
92
2,041
1,025
1,016
2,041
92
2,405
1,389
1,016
2,405
Average annual compensation due to the Board of Directors, Executive Board, and
Fiscal Council in third quarter of 2010:
2010
Number of members
Highest individual compensation
Lowest individual compensation
Average individual compensation
Parent Company
Board of
Fiscal
Executive
Committee
Offcers
Board of
Directors
22
5
95
47
71
7
74
74
74
Total
34
164
144
146
332
265
291
23. SHAREHOLDERS’ EQUITY
a) Capital Stock
There are 203,934,060 non-par and book-entry common shares of Light S.A.
(203,934,060 on December 31, 2009) as of September 30, 2010 recorded as Capital
Stock in the total amount of R$2,225,822 (R$2,225,822 on December 31, 2009), as
follows:
SHAREHOLDERS
Controlling Group
RME Rio Minas Energia Participações S.A.
Andrade Gutierrez Concessões S.A.
Companhia Energética de Minas Gerais S.A.
Luce Empreendimentos e Participações S.A.
Other
BNDES Participações S.A. - BNDESPAR
Public
Treasury shares
Overall Total
09/30/2010
Number of Shares
106,304,597
26,576,150
1,081,649
52,070,649
26,576,149
97,629,463
40,826,782
56,802,681
203,934,060
% Interest
52.12
13.03
0.53
25.53
13.03
47.88
20.02
27.86
100
12/31/2009
Number of Shares
% Interest
106,304,597
52.12
26,576,150
26,576,149
26,576,149
26,576,149
13.03
13.03
13.03
13.03
97,629,463
47.88
49,776,782
47,593,781
258,900
203,934,060
24.41
23.34
0.13
100
Light S.A. is authorized to increase its capital up to the limit of 203,965,072 through
resolution of the Board of Directors, regardless of amendments to the bylaws. However,
this increase is to occur exclusively upon the exercise of the warrants issued, strictly
pursuant to the conditions of the warrants (Bylaws, Article 5, paragraph 2).
24. DIVIDENDS
At the Extraordinary General Meeting held on September 23, 2010, the shareholders
approved the distribution of interim dividends in the amount of R$363,002, referring to
the profit reserve recorded in the balance sheet as of December 31, 2009. These
dividends were made available to shareholders on October 1, 2010.
25. EARNINGS PER SHARE
Pursuant to the requirements of CPC 41 and the IAS 33 (Earnings per Share), the
statement below reconciles the year's earnings per share with the amounts used to
determine the basic and diluted earnings per share.
Consolidated
09/30/2010
12/31/2009
NUMERATOR
Net income for the period (R$)
DENOMINATOR
Weighted average number of common shares
523,395
588,804
203,934,060
203,933,966
2.566
2.887
BASIC AND DILUTED EARNINGS PER COMMON SHARE
There were no significant differences between the basic and diluted earnings per share
as of September 30, 2009 and 2010.
26. NET OPERATING REVENUE BREAKDOWN
Consolidated
Supply to consumers/distributors (note 29)
Leases, rentals and other
Revenue from network usage
Revenue from consrtruction
Revenue from services rendered
Taxed service fee
Other Revenues
GROSS REVENUE
2010
2009
1,939,440
6,166
193,880
134,574
27,001
586
2,301,647
1,802,308
10,170
149,121
155,208
5,588
725
2,123,120
Billed supply -ICMS
PIS / COFINS
Other
REVENUE TAXES
(485,759)
(125,191)
(807)
(611,757)
(455,525)
(95,182)
(371)
(551,078)
Fuel Consumption Account - CCC
Energy Development Account - CDE
Global Reveral Reserve - RGR
Energy Research Company - EPE
National Technological Development Fund - FNDCT
Energy Efficiency Program - PEE
Research and Development -R&D
Other Charges
CONSUMER CHARGES
(53,366)
(51,546)
(15,838)
(1,470)
(2,942)
(6,526)
(2,943)
(1,357)
(135,988)
(46,717)
(51,519)
(20,100)
(1,287)
(2,566)
(5,675)
(2,566)
(130,430)
TOTAL DEDUCTIONS
(747,745)
(681,508)
NET REVENUE
1,553,902
1,441,612
Consolidated
Supply to consumers/distributors (note 29)
Leases, rentals and other
Revenue from network usage
Revenue from consrtruction
Revenue from services rendered
Taxed service fee
Other Revenues
GROSS REVENUE
Billed supply -ICMS
PIS / COFINS
Other
REVENUE TAXES
Fuel Consumption Account - CCC
Energy Development Account - CDE
Global Reveral Reserve - RGR
Energy Research Company - EPE
National Technological Development Fund - FNDCT
Energy Efficiency Program - PEE
Research and Development -R&D
Other Charges
CONSUMER CHARGES
TOTAL DEDUCTIONS
NET REVENUE
2010
2009
6,262,688
28,063
548,083
357,010
54,402
1,564
7,251,810
5,914,679
30,014
440,237
381,813
20,669
2,079
6,789,491
(1,663,478)
(401,802)
(2,976)
(2,068,256)
(1,531,200)
(320,702)
(2,041)
(1,853,943)
(158,812)
(154,638)
(49,954)
(4,561)
(9,121)
(20,502)
(9,122)
(1,357)
(408,067)
(114,041)
(154,557)
(60,299)
(4,130)
(8,252)
(18,441)
(8,252)
(367,972)
(2,476,323)
(2,221,915)
4,775,487
4,567,576
27. ELECTRIC POWER SUPPLY
Consolidated
(1) (2)
Number of billed sales
2010
2009
07.01 to 09.30
Residential
Industrial
Commerce, services and other
Rural
Public sector
Public lighting
Public utility
Own consumption
Billed sales
ICMS (State VAT)
Unbilled sales
TOTAL SUPPLY
(3)
Electric power auction
Short-term energy
TOTAL SUPPLY
OVERALL TOTAL
GWh
(1)
2010
R$
2009
2010
2009
3,736,440
11,472
274,078
11,147
10,366
706
1,316
360
4,045,885
-
3,702,644
11,993
272,633
11,162
10,079
431
1,329
331
4,010,602
-
1,777
414
1,386
12
322
171
272
25
4,379
-
1,761
458
1,388
12
317
168
263
16
4,383
-
589,680
78,221
429,114
2,228
103,245
25,971
56,808
1,285,267
479,098
18,466
564,265
95,338
414,569
2,164
97,598
24,541
51,183
1,249,658
454,589
6,673
4,045,885
4,010,602
4,379
4,383
1,782,831
1,710,920
1,190
236
1,426
1,154
157
1,311
120,572
36,037
156,609
82,332
9,056
91,388
5,805
5,694
1,939,440
1,802,308
4,045,885
4,010,602
Consolidated
(1) (2)
Number of billed sales
2010
2009
01.01 to 09.30
Residential
Industrial
Commerce, services and other
Rural
Public sector
Public lighting
Public utility
Own consumption
Billed sales
ICMS (State VAT)
Unbilled sales
TOTAL SUPPLY
(3)
Electric power auction
Short-term energy
TOTAL SUPPLY
OVERALL TOTAL
GWh
2010
(1)
R$
2009
2010
2009
3,736,440
11,472
274,078
11,147
10,366
706
1,316
360
4,045,885
-
3,702,644
11,993
272,633
11,162
10,079
431
1,329
331
4,010,602
-
6,185
1,286
4,593
38
1,075
508
820
59
14,564
-
5,785
1,349
4,447
37
1,029
506
799
50
14,002
-
2,058,182
253,264
1,394,611
7,043
332,996
77,258
167,036
4,290,390
1,647,150
(36,491)
1,893,070
303,824
1,375,607
6,973
320,744
75,657
159,407
4,135,282
1,523,465
(14,353)
4,045,885
4,010,602
14,564
14,002
5,901,049
5,644,394
3,430
467
3,897
3,413
639
4,052
303,506
58,133
361,639
241,627
28,658
270,285
18,461
18,054
6,262,688
5,914,679
4,045,885
4,010,602
28. OPERATING COSTS AND EXPENSES
07.01 to 09.30
Electric Power
Nature of the expense
Personnel and management
Material
Outsourced services
Electricity purchased for resale (Note 26)
Depreciation and amortization
Allowance for doubtful accounts
Provision for contingencies
Cost of Construction
Other
Total
01.01 to 09.30
Operation
(821,977)
(821,977)
(43,197)
(7,289)
(38,313)
(79,800)
(134,574)
(4,748)
(307,921)
Selling
(2,477,688)
(2,477,688)
Other Operating
Revenues (Expenses)
General and Adm
(3,874)
(581)
(19,593)
(264)
(66,666)
(271)
(91,249)
(17,698)
(1,022)
(30,069)
(9,080)
44,872
(20,984)
(33,981)
1,284
1,284
2010
(64,769)
(8,892)
(87,975)
(821,977)
(89,144)
(66,666)
44,872
(134,574)
(24,719)
(1,253,844)
2009
(60,592)
(4,607)
(65,399)
(774,557)
(85,966)
(57,935)
(9,087)
(155,208)
(19,208)
(1,232,559)
Consolidated
Operating Expenses
Cost of Service
Electric Power
Nature of the expense
Personnel and management
Material
Outsourced services
Electricity purchased for resale (Note 26)
Depreciation and amortization
Allowance for doubtful accounts
Provision for contingencies
Cost of Construction
Other
Total
Consolidated
Operating Expenses
Cost of Service
Operation
(120,930)
(21,144)
(110,784)
(235,361)
(357,010)
(11,898)
(857,127)
Selling
General and Adm
(11,032)
(1,685)
(56,652)
(776)
(205,459)
(657)
(276,261)
Other Operating
Revenues (Expenses)
(50,395)
(2,966)
(86,948)
(26,721)
45,003
(59,720)
(181,747)
11,879
11,879
2010
(182,357)
(25,795)
(254,384)
(2,477,688)
(262,858)
(205,459)
45,003
(357,010)
(60,396)
(3,780,944)
2009
(199,422)
(15,545)
(188,107)
(2,536,175)
(257,722)
(184,643)
(32,968)
(381,813)
(62,593)
(3,858,988)
29. ELECTRIC POWER PURCHASED FOR RESALE
Consolidated
(1)
07.01 to 09.30
GWh
2010
Connection charges
Spot market energy
Network usage charges
Itaipu
UTE Norte Fluminense
O.N.S.
PROINFA
ESS
Other contracts and electric power auctions
R$
2010
(4,680)
427
(102,684)
(136,897)
(200,691)
(3,505)
(26,778)
(27,876)
(319,293)
(821,977)
2009
(4,732)
(15)
(107,215)
(147,949)
(242,025)
(3,877)
(23,745)
(4,372)
(240,627)
(774,557)
R$
2010
(13,875)
(7,653)
(312,989)
(415,575)
(595,506)
(13,099)
(87,394)
(82,435)
(949,162)
(2,477,688)
2009
(14,306)
(53,252)
(302,166)
(718,216)
(491,079)
(10,922)
(76,657)
(32,942)
(836,635)
(2,536,175)
2009
1,371
1,601
3,444
6,416
112
1,432
1,601
3,196
6,341
Consolidated
(1)
01.01 to 09.30
GWh
2010
Connection charges
Spot market energy
Network usage charges
Itaipu
UTE Norte Fluminense
O.N.S.
PROINFA
ESS
Other contracts and electric power auctions
(1) Not revised by independent auditors
853
4,048
4,751
11,176
20,828
2009
679
4,223
4,751
10,488
20,141
30. FINANCIAL INCOME
07.01 to 09.30
REVENUES
Interest and variation on debts paid by installments
Restatement of tax credits
Income from temporary cash investments
Swap operations
Other
EXPENSES
Adjustment at present value of receivables
Restatement of tax liabilities
Restatement of provision for contingencies
Banking expenses
Charges and monetary variations with BNDES financing
Charges and monetary variations on actuarial liability of Brasilight
Interest and charges on loans and financing – foreign currency
Interest and charges on loans and financing – domestic currency
Regulatory fines
Interest and fines on taxes
Regulatory fines
Installment payment - Other fines and interest rates Law 11941 / 09
Monetary variation – local currency
Exchange variation – foreign currency
Swap operations
Other
NET FINANCIAL INCOME
01.01 to 09.30
REVENUES
Interest and variation on debts paid by installments
Restatement of tax credits
Income from temporary cash investments
Swap operations
Other
EXPENSES
Adjustment at present value of receivables
Surplus (deficit) adjustment - Braslight
Restatement of tax liabilities
Restatement of provision for contingencies
Banking expenses
Charges and monetary variations with BNDES financing
Charges and monetary variations on actuarial liability of Brasilight
Interest and charges on loans and financing – foreign currency
Interest and charges on loans and financing – domestic currency
Encargos sobre passivos regulatórios
Credit reversal of IR Debenture 4th Issue
Interest and fines on taxes
Regulatory fines
Installment payment - Other fines and interest rates Law 11941 / 09
Monetary variation – local currency
Exchange variation – foreign currency
Swap operations
Other
NET FINANCIAL INCOME
Parent Company
2010
2009
Consolidated
2010
2009
28
311
243
582
69
5
74
16.971
1.850
20.794
125
3.541
43.281
14.927
3.530
17.211
(1.761)
8.348
42.255
(49)
(49)
(175)
(175)
(13.545)
(6.962)
(383)
(14.424)
(14.626)
(1.649)
(49.291)
(31)
(103)
(1.551)
(4.667)
14.782
(3.327)
(6.413)
(102.190)
4.655
(6.695)
(7.321)
(22.277)
(2.912)
(49.079)
(3.518)
(387)
(379)
(3.585)
(2.157)
(93.655)
533
(101)
(58.909)
(51.400)
Parent Company
2010
2009
48
654
250
952
Consolidated
2010
1.157
20
1.177
2009
58.926
19.923
49.517
157
10.924
139.447
61.016
18.456
45.069
(10.047)
7.288
121.782
(49)
(49)
(416)
(416)
(5.488)
(6.388)
(34)
(29.779)
(15.721)
(39.158)
(75.841)
(5.621)
(136.471)
(5.254)
(11.523)
9.615
(8.446)
7.780
(10)
11.544
(3.246)
(14.355)
(328.396)
16.074
(22.284)
(37.511)
(2.411)
(384)
(42.765)
(10.664)
(139.741)
(10.651)
(394)
42.429
(6.145)
17.194
(197.253)
903
761
(188.949)
(75.471)
31. FINANCIAL INSTRUMENTS
Below, we compared book and fair values of financial instruments’ assets and liabilities:
Parent Company
09/30/2010
12/31/2009
Book value
Fair Value
Book value
Fair Value
ASSETS
Cash and cash equivalents (note 5 )
Other Receivable (note 11)
LIABILITIES
Suppliers (Note 15)
425,605
2,064
427,669
425,605
2,064
427,669
14,584
20,212
34,796
14,584
20,212
34,796
494
494
494
494
6,348
6,348
6,348
6,348
Consolidated
09/30/2010
12/31/2009
Book value
Fair Value
Book value
Fair Value
ASSETS
Cash and cash equivalents (note 5 )
Marketable Securities (note 6)
Concessionaires and permissionaires (note 7)
Swaps
Concession financial assets (note 10)
Other Receivable (note 11)
LIABILITIES
Suppliers (Note 15)
Loans and financing (Note 16)
Debentures (Note 17)
Swaps (Note 16)
838,580
11,083
1,503,171
384,903
132,331
2,870,068
838,580
11,083
1,503,171
384,903
132,331
2,870,068
760,313
68,059
1,653,652
4
354,784
97,250
2,934,062
760,313
68,059
1,653,652
4
354,784
97,250
2,934,062
499,982
1,233,746
1,184,801
8,872
2,927,401
499,982
1,233,746
1,184,801
8,872
2,927,401
564,181
1,183,003
1,241,675
5,558
2,994,417
564,181
1,195,561
1,241,675
5,558
3,006,975
In compliance with CVM Statement No. 475/2008 and CVM Resolution No. 604/2009,
which superseded Resolution No. 566/2008, the description of accounting balances and
fair value of financial instruments stated in the balance sheet as of September 30, 2010
and 2009 are identified as follows:
 Financial investments
Financial investments in bank deposit certificates are measures at their acquisition
cost duly escalated at the balance sheet date, which value is proximate to their fair
value, as determined by the management.
 Marketable Securities
Financial investments in bank deposit certificates are measures at their acquisition
cost duly escalated at the balance sheet date, which value corresponds to their fair
value.
 Consumers, utility operators and permit holders (customers)
These are classified as “loans and receivables”, being recorded at their original
values and subject to a provision for losses and adjustments to their present values,
where applicable.
 Financial concession assets
These are classified as “loans and receivables”, being recorded at their original
values and subject to a provision for losses and adjustments to their present values,
where applicable.
 Suppliers
Accounts payable to suppliers of materials and services required in the operations of
the Company and its subsidiaries, the amounts of which are known or easily
determinable, added, where applicable, of relevant charges, escalation and/or
exchange costs incurred as of the balance sheet date.
These balances are classified as “financial liability not measured at fair value” and
were recognized at their amortized cost, which is not significantly different from
their fair value.
 Loans, financing and debentures
Loans and financing are measured by the “restated amortized cost method. Market
value was calculated at interest rates applicable to instruments with similar nature,
maturities and risks, or based on market quotations of these securities. Market value
for BNDES financing are identical to accounting balances, since there are no similar
instruments, with comparable maturities and interest rates. In case of debentures,
book and market value are identical, as there is no liquid trading market for these
debentures as an accurate benchmark in the market calculation. These financial
instruments are classified as “financial liabilities not measured at the fair value”.
 Swaps
Swap operations are measured by the “fair value”. A the determination of fair value
used available information in the market and usual pricing methodology: the face
value (notional) evaluation for long position (in U.S. dollars) until maturity date and
discounted at present value of clean coupon rates, published in bulletins of
Securities, Commodities and Futures Exchange – BM&F Bovespa.
It is worth mentioning that estimated market value of financial assets and liabilities were
determined by means of information available on the market and appropriate valuation
methodologies. Nevertheless, meaningful judgment was required when interpreting
market data to produce the most appropriate fair value estimate. As a result, estimates
used and presented below do not necessarily indicate the amounts that may be realized
in current exchange market.
a) Financial Instruments by category:
Loans
and receivables
ASSETS
Cash and cash equivalents (note 5 )
Marketable Securities (note 6)
Concessionaires and permissionaires (note 7)
Swaps
Concession financial assets (note 10)
Other Receivable (note 11)
425.605
-
-
2.064
427.669
Amortized
cost
LIABILITIES
Suppliers (Note 15)
Loans and financing (Note 16)
Debentures (Note 17)
Swaps (Note 16)
Parent Company
09/30/2010
Fair value
through
profit and loss
Fair value
through
profit and loss
494
494
-
Loans
and receivables
Total
425.605
2.064
427.669
838.580
11.083
1.503.171
384.903
132.331
2.870.068
Amortized
cost
Total
494
494
499.982
1.233.746
1.184.801
8.872
2.927.401
Consolidated
09/30/2010
Fair value
through
profit and loss
Fair value
through
profit and loss
-
Total
838.580
11.083
1.503.171
384.903
132.331
2.870.068
Total
499.982
1.233.746
1.184.801
8.872
2.927.401
b) Policy for utilization of derivatives
The Company has a policy for utilization of derivative instruments approved by the
Board of Directors determining the debt service protection (principal plus interest and
commissions) denominated in foreign currency to mature within 24 months, forbidding
any utilization for speculative purposes, whether in derivatives or any other risk assets.
In line with provisions of this policy, the Company and its subsidiaries do not have
futures contracts, options, swaptions, swaps with regret option, flexible options,
derivatives embedded in other products, structure operations with derivatives and
“exotic derivatives”. In addition, it is evidenced through the chart above that the single
derivative instrument used by the Company and its subsidiaries is the non-cash currency
swap (US$ versus CDI), whose Contractual Notional Value corresponds to the amount
of foreign currency-denominated debt service to expire within 24 months.
c) Risk management and objectives achieved
The management of derivative instruments is conducted by means of operating
strategies, aiming liquidity, profitability and safety. The control policy consists of
permanently inspecting the policy compliance in the utilization of derivatives, as well as
to monitor the rates contracted against those used in the market.
d) Risk Factors
During the normal course of its businesses, the Company and its subsidiaries are
exposed to the market risks related to currency variations and interest rates, as evidenced
in the chart below:
Debt breakdown (excluding financial charges):
Consolidated
09/30/2010
R$
80,960
80,960
1,714,710
562,873
60,004
2,337,587
2,418,547
USD
Currency Basket (BNDES)
Foreign currency (current and non-current)
CDI
TJLP
Other
Local currency (current and non-current)
Overall total (current and non-current)
%
3.3
3.3
70.9
23.3
2.5
96.7
100.0
12/31/2009
R$
99,721
444
100,165
1,763,892
521,542
39,079
2,324,513
2,424,678
%
4.1
4.1
72.7
21.5
1.7
95.9
100
On September 30, 2010, according to the chart above, the foreign currency-denominated
debt is R$80,960, or 3.35% of total debt.
Financial derivative instruments were contracted for the amount of foreign currencydenominated debt service to expire within 24 months, in the swap modality, whose
notional value on September 30, 2010 stood at US$21,868, according to the policy for
utilization of derivative instruments approved by the Board of Directors. Thus, if we
deduct this amount from total foreign currency-denominated debt, the foreign exchange
exposure represents 1.81% of total debt.
Below we provide a few considerations and analyses on risk factors impacting on
business of Grupo Light companies:
 Currency risk
Considering that a portion of Light SESA’s loans and financing is denominated in
foreign currency, the company uses derivative financial instruments (swap operations) to
hedge service associated with these debts (principal plus interest and commissions) to
expire within 24 months. Derivative operations resulted in a R$3,348 loss in 3Q10 (a
loss of R$5,344 in 3Q09). The net amount of swap operations as of September 30, 2010,
considering the fair amount, is a negative R$8,872 (negative by R$5,487 on September
30, 2009), as shown below:
Institution
Light's
Light's
Receivable Payable
Starting
Date
Maturity
Date
Notional Fair Value Fair Value
Value
Sep/10
Sep/10
Contracted
(R$)
(R$)
Fair Value
Sep/10
(R$)
Citibank
US$+2.80%
100% CDI
10/02/09
10/11/10
5,511
-
(4,675)
(4,675)
Citibank
US$+2.80%
100% CDI
10/02/09
12/27/2010
376
-
(319)
(319)
Banco Itau
US$+2.20%
100% CDI
18/06/09
03/10/11
69
-
(31)
(31)
Citibank
US$+2.33%
100% CDI
18/06/09
04/12/11
5,435
-
(2,428)
(2,428)
Banco Itau
US$+2.30%
100% CDI
10/09/09
09/12/11
67
-
(17)
(17)
Banco Itau
US$+2.79%
100% CDI
09/10/09
11/10/11
5,273
-
(769)
(769)
Citibank
US$+3.20%
100% CDI
10/03/10
03/12/12
64
-
(9)
(9)
Banco Itau
US$+2.82%
100% CDI
12/04/10
04/11/12
5,010
-
(622)
(622)
Bradesco
US$+2.50%
100% CDI
10/09/10
09/10/12
63
-
(2)
(2)
21,868
-
(8,872)
(8,872)
Total
The amount recorded was already measured by its fair value on September 30, 2010. All
operations with derivative financial instruments are registered in clearing houses for the
custody and financial settlement of securities and there is no margin deposited in
guarantee. Operations have no initial cost.
Below, the sensitivity analysis for foreign exchange and interest rates fluctuations,
showing eventual impacts on financial result of the Company and its subsidiaries.
The methodology used in the “Probable Scenario” was to consider that both foreign
exchange and interest rates will maintain the same level verified on September 30, 2010
until the end of 2010, maintaining steady liabilities, derivatives and temporary cash
investments verified on September 30, 2010. It is worth highlighting that, as this refers
to a sensitivity analysis of the impact on the 2010 financial result, the realized amounts
of financial expense and/or revenue until 3Q10 were considered, and charges projection
for the next three months over debt balance on September 30, 2010. It is worth
mentioning that the behavior of debt and derivatives balances will observe their
respective contracts, and the balance of temporary cash investments will fluctuate
according to the need or available funds of the Company and its subsidiaries.
Risk of Exchange Rate Depreciation
R$
Operation
Risk
FINANCIAL LIABILITIES
Par Bond
Discount Bond
C. Bond
Debit. Conv.
Bib
Bndes - Import Financ.
KfW
USD
USD
USD
USD
USD
Cesta
USD
4,121
2,140
3,412
(1,359)
(8)
(29)
(18)
(17)
(16,448)
(4,636)
(1,225)
(7,038)
(3,166)
(183)
(18)
(182)
(37,016)
(11,409)
(5,862)
(12,718)
(6,324)
(338)
(18)
(347)
USD
(4,467)
5,073
14,613
DERIVATIVES
Swaps
Reference for financial assets and liabilities
Financial
R$/US$ exchange rate (end of the period)
Scenario (I): Probable
1.6942
Scenario (II)
Scenario (III)
+25%
+50%
2.1178
2.5413
Risk of Exchange Rate Depreciation
R$
Operation
Risk
FINANCIAL LIABILITIES
Par Bond
Discount Bond
C. Bond
Debit. Conv.
Bib
Bndes - Import Financ.
KfW
USD
USD
USD
USD
USD
Cesta
USD
4,121
2,140
3,412
(1,359)
(8)
(29)
(18)
(17)
24,690
8,915
8,049
4,321
3,150
125
(18)
148
45,258
15,690
12,686
10,000
6,307
280
(18)
313
USD
(4,467)
(14,007)
(23,547)
-25%
-50%
1.2707
0.8471
DERIVATIVES
Swaps
Reference for financial assets and liabilities
Financial
R$/US$ exchange rate (end of the period)
Scenario (I): Probable
1.6942
Scenario (IV)
Scenario(V)
With the chart above, it is possible to identify that despite partial hedge against foreign
currency-denominated debt (only limited to debt service to expire within 24 months), as
R$/US$ quote increases, liabilities financial expense also increases but financial
revenues of derivatives also partially offset this negative impact and vice-versa. Thus,
cash is hedged thanks to the derivatives policy of the Company and its subsidiaries.
 Interest rate risk
This risk derives from impact of interest rates fluctuation not only over financial
expense associated with loans and financing of subsidiaries, but also over financial
revenues deriving from temporary cash investments. The policy for utilization of
derivatives approved by the Board of Directors does not comprise the contracting of
instruments against such risk. Nevertheless, the Company and its subsidiaries
continuously monitor interest rates so that to evaluate eventual need of contracting
derivatives to hedge against interest rates volatility risk.
See below the sensitivity analysis of interest rate risk, evidencing the effects on
scenarios variation results:
Risk of Interest Rate Increase
Operation
Risk
FINANCIAL ASSETS
Temporary cash investments
CDI
69,115
71,637
74,109
FINANCIAL LIABILITIES
Debentures 5th issue
CCB Bradesco
CCB Bco ABN Amro Banking S/A
Debentures 4th issue
FINEM BNDES 2006-2008
FINEM BNDES 2009-2010
FINEM BNDES 2009-2010 TJLP+1
PROESCO
Debentures 6th issue
CDI
CDI
CDI
TJLP
TJLP
TJLP
TJLP
TJLP
CDI
(244,037)
(99,212)
(47,957)
(8,613)
(13)
(37,737)
(8,346)
(9,064)
(204)
(32,891)
(258,631)
(105,024)
(50,881)
(9,133)
(13)
(39,533)
(8,966)
(9,685)
(222)
(35,174)
(273,240)
(110,834)
(53,806)
(9,654)
(14)
(41,328)
(9,585)
(10,306)
(240)
(37,473)
DERIVATIVES
Swaps
CDI
(4,467)
(4,759)
(5,046)
9.73%
+25%
10.38%
+50%
11.02%
9.73%
6.09%
+25%
10.38%
6.47%
+50%
11.02%
6.85%
Reference for FINANCIAL ASSETS
CDI (% YTD)
Reference for FINANCIAL LIABILITIES
CDI (% YTD)
TJLP (% YTD)
Scenario (I):
Probable
R$
Scenario (II)
Scenario (III)
Risk of Interest Rate Reduction
Operation
Risk
FINANCIAL ASSETS
Temporary cash investments
CDI
FINANCIAL LIABILITIES
Debentures 5th issue
CCB Bradesco
CCB Bco ABN Amro Banking S/A
Debentures 4th issue
FINEM BNDES 2006-2008
FINEM BNDES 2009-2010
FINEM BNDES 2009-2010 TJLP+1
PROESCO
Debentures 6th issue
DERIVATIVES
Swaps
Reference for FINANCIAL ASSETS
CDI (% YTD)
Reference for FINANCIAL LIABILITIES
CDI (% YTD)
TJLP (% YTD)
CDI
CDI
CDI
TJLP
TJLP
TJLP
TJLP
TJLP
CDI
Scenario (I):
Probable
R$
Scenario (IV)
Scenario (V)
69,115
66,543
63,918
(244,037)
(99,212)
(47,957)
(8,613)
(13)
(37,737)
(8,346)
(9,064)
(204)
(32,891)
(229,461)
(93,403)
(45,032)
(8,092)
(12)
(35,942)
(7,727)
(8,443)
(185)
(30,625)
(214,899)
(87,592)
(42,107)
(7,571)
(11)
(34,146)
(7,107)
(7,822)
(167)
(28,376)
(4,467)
(4,169)
(3,866)
9.73%
-25%
9.07%
-50%
8.39%
9.73%
6.09%
-25%
9.07%
5.70%
-50%
8.39%
5.31%
CDI
 Credit risk
It refers to the Company and its subsidiaries eventually suffering losses deriving from
default of counterparties or financial institutions depositary of funds or temporary cash
investments. To mitigate these risks, the Company and its subsidiaries adopt as practice
to analyze the financial and equity conditions of its counterparties, as well to define the
credit limits and continuously monitor outstanding positions. Concerning financial
institutions, the Company and its subsidiaries only carry out operations with low-risk
financial institutions classified by rating agencies.
 Liquidity risk
Liquidity risk relates to the Company's ability to settle its liabilities. In order to
determine the Company's ability to satisfactorily meet its financial liabilities, the
streams of maturities for funds raised and other liabilities are reported with the
Company's statements. Further information on the Company's loans can be found in
detail in Note 16.
The Company has raised funds through its operations, from financial market
transactions and from affiliate companies. These funds are allocated primarily to
support its investment plan and in managing its cash for working capital and liability
management purposes.
Management of financial investments focuses on short-term instruments in an attempt to
achieve maximum liquidity and satisfy our expenditure requirements.
The Company's cash-generation ability and low volatility concerning receivables and
accounts payable over the year provide cash flow stability and thus reduce its liquidity
exposure.
The realization flow concerning future liabilities as per the relevant terms and
conditions is summarized in the statement below:
Por que esta tabela tem 2 linhas? Os títulos são os mesmos. Ou então faltou algo.
Interest rate instruments
Fixed rate
Loans, financings and debentures
Interest rate instruments
Fixed rate
Loans, financings and debentures
1 to 3
months
142,749
11,403
3 months to 1
year
709,462
41,212
Consolidated
1 to 5
years
More than
5 years
2,100,990
107,706
171,004
146,783
Total
3,060,907
370,402
e) Capital Management
The Company manages its capital with the purpose of safeguarding its capacity to
continuously offer return to shareholders and benefits to other stakeholders, in addition
to maintaining the ideal capital structure to reduce costs.
In order to maintain or adjust its capital structure, the Company reviews the dividend
payment policy, returns capital to shareholders or issues new shares and sells assets to
reduce the indebtedness level, for instance.
f) Hierarchical Fair Value
There are three types of classification levels for the fair value of financial
instruments. This hierarchy prioritizes unadjusted prices quoted in an active market
for financial assets or liabilities. The classification of hierarchical levels can be
presented as follows:

Level 1 - Data originating from an active market (unadjusted quoted price)
that can be accessed on a daily basis, including at the date of fair value
measurement.
 Level 2 - Different data originating from the active market (unadjusted quoted
price) included in Level 1, extracted from a pricing model based on data
observable in the market.
 Level 3 - Data extracted from a pricing model based on data that are not
observable in the market.
09/30/2010
ASSETS
Cash and cash equivalent (note 5)
Marketable Securities (note 6)
Swaps
LIABILITIES
Loans and Financings (note 16)
Debentures (note 17)
Swaps (note 16)
Consolidated
Measurement of Fair Value
Identical
Similar
markets
markets
Level 1
Level 2
Without active
market
Level 3
838,580
11,083
849,663
-
838,580
11,083
849,663
-
1,233,746
1,184,801
8,872
2,427,419
-
1,233,746
1,184,801
8,872
2,427,419
-
No financial instrument classified as Level 1 or 3 was observed in the analysis year, and
there was no transfer from one level to another in the same year.
32. INSURANCE
On September 30, 2010, Light Group had insurance covering its main assets.
The assumptions of risks adopted, given their nature, are not included in the scope of a
special review, accordingly, they were not audited by independent auditors.
Insurance coverage as of September 30, 2010 is considered sufficient by Management,
as summarized below:
RISKS
Directors & Officers (D&O)
Civil and general liabilities
Operating risks*
Effective Term
From
To
10/08/2009
25/09/2009
31/10/2009
10/08/2010
25/09/2010
31/10/2010
Amount
Insured
Premium
US$20.000
R$20,000
R$ 3,572,187
US$76
R$448
R$1,632
* The contract was renewed and will be effective from 10/31/2010 to 31/10/2011, with risk value of R$3,664,000 and premium of R$1,482.
*The Maximum Limit of Indemnification (MLI) stood at R$300,000.
33. SEGMENT REPORTING
Segment reporting was prepared according to CPC 22 (Segment Information),
equivalent to IFRS 8, and is reported in relation to the business of the Company and its
subsidiaries, identified based on their management structure and internal management
information.
The Company's Management considers the following segments: power distribution,
power generation, power trading and others (including the holding). The Company is
segmented according to its operation, which has different risks and compensation.
Segment information on September 30, 2010 and December 31, 2009 are presented
below:
Distribution
Current assets
Non-current assets
Investments
Property, plant and equipment
Intangible assets
Current liabilities
Non-current liabilities
Shareholders' equity
2,068,444
2,137,852
16,449
188,652
3,431,747
1,729,054
3,667,564
2,446,526
Distribution
Current assets
Non-current assets
Investments
Property, plant and equipment
Intangible assets
Current liabilities
Non-current liabilities
Shareholders' equity
2,592,400
2,324,417
16,448
180,658
3,306,009
1,632,313
4,088,365
2,699,254
Generation
139,862
1,458
2,001
1,412,647
126,001
161,164
663,566
857,239
Generation
241,920
668
150
1,414,844
116,971
256,089
733,617
784,847
Trading
75,173
927
2,181
4,898
38,810
3,387
40,982
Trading
49,947
1,889
2,581
4,336
29,473
1,455
27,825
Other
430,940
194
2,971,216
1,072
1,187
366,617
518
3,037,474
Other
191,464
68
3,514,356
730
151,750
19
3,553,680
Eliminations
(88,694)
(235,146)
(2,969,137)
(88,694)
(235,146)
(2,969,137)
Eliminations
(288,818)
(307,244)
(3,513,147)
(288,818)
(307,244)
(3,511,978)
Consolidated
9/30/2010
2,625,725
1,905,285
22,710
1,607,269
3,558,935
2,206,951
4,099,889
3,413,084
Consolidated
12/31/2009
2,786,913
2,019,798
20,388
1,600,568
3,422,980
1,780,807
4,516,212
3,553,628
Segment reporting:
Consolidated
Eliminations
Other
Trading
Generation
Distribution
Consolidated
9/30/2009
09/30/2010
Restated
6,893,586
263,493
155,799
-
(61,068)
7,251,810
6,789,491
5,937,540
-
-
-
-
5,937,540
5,658,747
(36,491)
-
-
-
-
(36,491)
(14,353)
Supply - Electric Power
40,246
259,046
110,535
-
(48,188)
361,639
270,285
Construction revenue
357,010
-
-
-
-
357,010
381,813
Other
595,281
4,447
45,264
-
(12,880)
632,112
492,999
(2,420,821)
(32,830)
(22,672)
-
-
(2,476,323)
(2,221,915)
(1,647,150)
-
(16,328)
-
-
(1,663,478)
(1,531,200)
(397,673)
(10,394)
-
-
-
(408,067)
(367,972)
(67,729)
(4,000)
(896)
-
-
(72,625)
(59,077)
(306,625)
(18,429)
(4,123)
-
-
(329,177)
(261,625)
(1,644)
(7)
(1,325)
-
-
(2,976)
(2,041)
4,472,765
230,663
133,127
-
(61,068)
4,775,487
4,567,576
(3,607,051)
(113,788)
(115,743)
(5,430)
61,068
(3,780,944)
(3,858,988)
(162,353)
(14,827)
(2,331)
(2,846)
-
(182,357)
(199,422)
(16,011)
(595)
(9,183)
(6)
-
(25,795)
(15,545)
(219,682)
(11,160)
(21,475)
(2,067)
-
(254,384)
(188,107)
OPERATIONAL REVENUE
Billed supplies
Unbilled supplies
DEDUCTIONS TO REVENUE
Billed sales - ICMS (State VAT)
Consumer charges
PIS (Tax on Revenues)
COFINS (Tax on Revenues)
Other
NET OPERATIONAL REVENUE
OPERATING EXPENSES AND COSTS
Personnel
Material
Outsourced services
(2,445,976)
(11,035)
(81,475)
-
60,798
(2,477,688)
(2,536,175)
Depreciation
(216,195)
(46,204)
(459)
-
-
(262,858)
(257,722)
Provisions
(151,129)
(9,327)
-
-
-
(160,456)
(217,611)
Construction cost
(357,010)
-
-
-
-
(357,010)
(381,813)
(38,695)
(20,640)
(820)
(511)
270
(60,396)
(62,593)
Energy purchased
Other
Equity in the earnings of subsidiaries
FINANCIAL INCOME
Financial revenue
Financial expenses
OPERATING INCOME
INCOME BEFORE TAXES
Social Contribution
Income tax
NET INCOME
-
-
-
528,225
(528,225)
-
-
(164,571)
(25,906)
738
790
-
(188,949)
(75,471)
157,350
5,021
1,096
839
(24,859)
139,447
121,782
(321,921)
(30,927)
(358)
(49)
24,859
(328,396)
(197,253)
701,143
90,969
18,122
523,585
(528,225)
805,594
633,117
(528,225)
701,143
90,969
18,122
523,585
805,594
633,117
(62,553)
(8,389)
(1,595)
-
-
(72,537)
(62,626)
(182,529)
(22,764)
(4,370)
-
-
(209,663)
(259,161)
456,061
59,816
12,157
523,585
523,394
311,330
(528,225)
34. LONG-TERM INCENTIVE PLAN
On September 30,2010 the subsidiary Light SESA set up a provision of R$1,059
referring to the vesting period of the long-term incentive plan, in the modality “phantom
options” incurred until the third quarter of 2010 against personnel expenses and a
provision amounting to R$3,177 in the year of 2010.
35. STATEMENT OF VALUE ADDED
LIGHT S.A.
STATEMENT OF VALUE ADDED FOR THE PERIODS ENDED SEPTEMBER 30
( In thousands of reais )
Parent Company
01/01/2010 to
09/30/2010
Consolidated
01/01/2009to 09/30/2009
01/01/2010 to
09/30/2010
01/01/2009to
09/30/2009
Revenues
Sales of goods, products and services
Other revenues
Allowance/reversal of allowance for doubtful accounts
Input acquired from third parties
Costs of products, goods and services sold
Material – energy – outsourced services – other
Gross value added
Retentions
Depreciation, amortization and depletion
Net added value produced
Added value received in transfers
Equity income
Financial income
Total added value to distribute
(2,580)
(2,580)
(2,580)
(2,580)
528,873
527,921
952
526,293
(1,320)
(1,320)
(1,320)
(1,320)
345,618
344,441
1,177
344,298
7,046,351
7,251,810
(205,459)
(3,074,164)
(2,477,688)
(596,476)
3,972,187
(262,858)
(262,858)
3,709,329
139,447
139,447
3,848,776
6,604,848
6,789,491
(184,643)
(3,172,970)
(2,536,175)
(636,795)
3,431,878
(257,722)
(257,722)
3,174,156
121,782
121,782
3,295,938
Distribution of added value
526,293
344,298
3,848,776
3,295,938
Personnel
Direct compensation
Benefits
Government Severance Fund for Employees (FGTS)
Other
Taxes, fees and contributions
Federal
State
Municipal
Third party capital remuneration
Interest
Rental
Other
Remuneration of own capital
Dividends
Retained earnings / accumulated losses for the year
2,681
2,426
147
108
169
169
49
49
523,394
523,394
32,443
32,301
108
31
3
106
106
419
416
3
311,330
157,921
121,127
23,024
11,745
2,025
2,816,326
1,144,341
1,664,047
7,938
351,135
310,295
24,656
16,184
523,394
523,394
167,723
123,675
26,102
15,481
2,465
2,592,085
1,054,703
1,531,812
5,570
224,800
194,842
14,827
15,131
311,330
311,330
The notes are an integral part of the financial statements.
311,330
36. SUBSEQUENT EVENTS
a) Tariff adjustment
On November 3, 2010, ANEEL approved the definite amount for the Tariff Adjustment
of Light SESA. The result ratified by ANEEL considers a Tariff Adjustment of 6.99%,
which comprises two components: structural, corresponding to 8.31%; and financial,
which will be valid up to October 2011, corresponding to 1.33% negative. Considering
the removal of the financial component from Light’s current tariffs, corresponding to
4.77%, this proposal represents an average tariff increase to final consumers of 2.20%.
b) Option Exercise
On October 7, 2010, Enlighted Partness Venture Capital LLC (“ENLIGHTED”)
exercised the put option of its quotas in Luce Investment Fund (“Luce Fund”), to the
Companhia Energética de Minas Gerais – CEMIG or to third party appointed by it,
object of the Option Agreement for the Sale of Shares and other Covenants (“Option”)
entered into on March 24, 2010 between CEMIG and ENLIGHTED.
Luce Fund holds 75% of quotas in Luce Brasil Fundo de Investimento em Participações
which in turn holds, through Luce Empreendimentos e Participações S.A. (“LEPSA”),
26,576,149 common shares issued by Light S.A., representing 13.03% of its voting
capital.
The exercise of the Option does not alter the validity of the shareholders’ agreement in
force, entered into on December 30, 2009 and available on the website of the Brazilian
Securities and Exchange Commission (CVM).
c) Dividends paid
At the Extraordinary General Meeting held on April 28, 2011, the payment of dividends
was approved based on income determined on December 31, 2010, in the amount of
R$350,979, and payment scheduled to May 18, 2011.
d) Debentures issue
In May 2011, Light SESA completed its 7th issue of simple, non-convertible into shares,
unsecured debentures, totaling R$650,000, through public offering with restricted
placement efforts, under the terms of CVM Rule 476, under a firm commitment basis.
Debentures were issued on May 2, 2011, and funds were included in the cash on May 5,
2011. The remuneration was fixed at 100% of CDI rate + 1.35% annual spread, defined
in a bookbuilding process, and interest will be paid in half-yearly installments and final
maturity scheduled for May 2, 2016.
In May 2011, Light Energia concluded its 1st issue of simple, non-convertible into
shares, unsecured debentures, totaling R$170,000, through public offering with
restricted placement efforts, under the terms of CVM Rule 476, under a firm
commitment basis.
Debentures were issued on April 10, 2011, and funds were included in the cash on May
12, 2011. The remuneration was fixed at 100% of CDI rate + 1.45% annual spread, and
interest will be paid in half-yearly installments and final maturity scheduled to April 10,
2016.
e) Redentor Operation
At the Extraordinary General Meeting held on April 28, 2011, the overall amount of
annual compensation of the Company’s Board of Directors and Board of the Executive
Officers was approved to R$14,915 to be paid in 2011.
f) Redentor Operation
The Company announced through a Material Fact published on May 13, 2011 that Parati
S.A – Participações em Ativos de Energia Elétrica (“Parati”), a closely-held company,
acquired 58,671,565 common shares, representing 54.08% of the total capital stock of
Redentor Energia S.A. (“Redentor”), an indirect shareholder of the Company. Said
shares were held by Fundo de Investimento em Participações – PCP (“FIP PCP”).
BOARD OF DIRECTORS
MEMBERS
ALTERNATES
Aldo Floris
Lauro Alberto de Luca
Ana Marta Horta Veloso
César Vaz de Melo Fernandes
Djalma Bastos de Morais
Wilson Borrajo Cid
Raul Belens Jungmann Pinto
Fernando Henrique Schuffner Neto
Firmino Ferreira Sampaio Neto
Carlos Augusto Leone Piani
Luiz Carlos Costeira Urquiza
Paulo Roberto Reckziegel Guedes
Carlos Roberto Teixeira Junger
Ricardo Simonsen
Sérgio Alair Barroso
Luiz Fernando Rolla
Maria Silvia Bastos Marques
Almir José dos Santos
Carlos Alberto da Cruz
Carmen Lúcia Claussen Kanter
Elvio Lima Gaspar
Joaquim Dias de Castro
FISCAL COUNCIL
MEMBERS
ALTERNATES
Eduardo Grande Bittencourt
(Chairman)
Ricardo Genton Peixoto
Isabel da Silva Ramos Kemmelmeier
(Member)
Ronald Gastão Andrade Reis
Marcelo Lignani Siqueira
(Member)
Eduardo Gomes Santos
Victor Adler
(Member)
Gabriel Agostini
Aristóteles Luiz Menezes Vasconcellos Drummond
(Member)
Ari Barcelos da Silva
BOARD OF EXECUTIVE OFFICERS
Jerson Kelman
Chief Executive Officer
João Batista Zolini Carneiro
Chief Financial and Investor Relations Officer
Evandro Leite Vasconcelos
Energy Officer
Paulo Carvalho Filho
Corporate Management Officer
Ana Silvia Corso Matte
Personnel and Legal Officer
José Humberto Castro
Distribution Officer
Paulo Roberto Ribeiro Pinto
New Business and Institutional Officer
CONTROLLERSHIP SUPERINTENDENCE
Luciana Maximino Maia
Controllership Superintendent
CPF 144.021.098-50
CRC-RJ 091476/O-0
Suzanne Lloyd Gasparini
Accountant – Accounting Manager
CPF 081.425.517-56
CRC-RJ 107359-0