History and Company Profile

History

1899

Light, more than one hundred years old, began its activities on July 17, 1899, through the Parnaíba Hydroelectric Power Plant, in Tietê river, built between 1899 and 1901.

1904

In order to operate in Brazil's federal capital city at that time, The Rio de Janeiro Tramway, Light and Power Co. Ltd. was founded in Toronto, on June 9, 1904, and was authorized to operate in Rio de Janeiro on May 30, 1905. In that same year, the company acquired the share control of the gas lighting concessionaire, the Belgian Société Anonyme du Gaz de Rio de Janeiro, a service that was controlled by Light until 1969, when it was transferred to the state government and when the most modern hydroelectric power plant in the country started to be built, the Fontes Power Plant, located in the city of Piraí, state of Rio de Janeiro.

1907

On July 30, 1907, the Company, through Light, started to provide stable and safe electric power supply to Rio de Janeiro. In that same year, Light acquired and unified several urban tram companies that operated in the city, controlling the service until 1963, enlarging the urban area of Rio de Janeiro, and contributing to give rise to several neighborhoods, such as Leme, Copacabana, Ipanema and Leblon.

1918

In addition to the trams, in 1918 the Company invested in electric buses that traveled through Avenida Rio Branco until 1927. In the previous year, the Company created the Viação Excelcior, the modern buses with bells and conductor and by the end of the 20s the double-decked buses. During that period the Company also started its telephony operations, until services started to being provided by the federal government in 1966.

1996

After the period under federal government administration, Light was privatized, through an auction held on the Rio de Janeiro Stock Exchange on May 21, 1996, and its share control was transferred to a consortium composed of three multinational companies - Electricité de France (EDF), AES Corporation and Reliant Energy - and Companhia Siderúrgica Nacional (CSN). In February 2002, the corporate restructuring process was concluded, consolidating EDF as parent company of Light.

2005

In 2005, Light concluded its deverticalization process, giving rise to the holding company Light S.A., parent company of the three operational companies: Light Energia S.A., liable for generation/transmission; Light Serviços de Eletricidade S.A., liable for distribution, and Light Esco Ltda. liable for commercialization, thus, composing the Grupo Light (Light Group).

2006

On March 28, 2006, a Share Purchase and Sale Agreement was entered into between EDF International S.A. (EDFI) and Rio Minas Energia Participações S.A. (RME), composed of Companhia Energética de Minas Gerais (Cemig), Andrade Gutierrez Concessões S.A. (AG Concessões), Pactual Energia Participações S.A. (Pactual Energia) and Luce Brasil Fundo de Investimentos em Participações (Luce). Thus, on August 10, 2006, the shares issued by Light and the quotas representing the capital stock of Lidil Comercial, owned by EDF, were transferred to RME-Rio Minas Energia Participações S.A., who become the new parent company of Light Group.

2008

On February 12, 2008, the Extraordinary General Meeting of Equatorial Energia S.A. approved the merger of PCP Energia, a company that holds 13.06% of Light's shares through RME, into the Equatorial group. As from this moment, Equatorial is part of the controlling group of Light - RME. Said merger does not represent a transfer of control since both companies, PCP and Equatorial, belong to the same controlling company.

2009

On December 31, 2009, following the Extraordinary Shareholders' Meeting the disproportionate partial spin-off of RME into three entities was approved. That action was followed by the incorporation of those split-offs by Companhia Energética de Minas Gerais (CEMIG), Andrade Gutierrez Concessões S.A. and Luce Empreendimentos e Participações S.A. (LEPSA).

2010

On March 25, 2010, Cemig acquired from Andrade Gutierrez Concessões S.A. ("AGC"), the total of 25,494,500 common shares issued by the Company, representing 12.50% of its total and voting capital. On November 17, 2010, Cemig acquired the remaining 0.53% interest held by AGC. With that, Cemig now holds a direct interest of 26.06% in the Company.

2011

On May 12, 2011, Parati S.A. - Participações em Ativos de Energia Elétrica ("Parati") acquired from the Fundo de Investimento em Participações - PCP ("FIP PCP") 58,671,565 common shares, representing 54.08% of the total capital of Redentor Energia S.A. ("Redentor"), indirect shareholder of the Company, through its controlled company RME - Rio Minas Energia Participações S.A., which holds 13.03% of the Company's capital.

2013

On January 11, 2013, Light S.A. and Light Energy S.A. ("Light Energia" and, jointly with Light, the "Companies") announced to the market in general that on that date Light Energia was granted by the Brazilian Securities and Exchange Commission (CVM) its registration as a publicly-held company, category "B".

In 2013 the Light Legal project was consolidated. The project represents an important step taken by the company to fight commercial losses. In addition to electronic measuring, the project is applied in small areas called "Área de Perda Zero" (loss area zeroed) or "APZs", with approximately 15,000 customers, and high levels of commercial losses and delinquency. During the year, the Light Legal project covered a total of 26 areas and 416,000 customers, showing significant results.

In generation, Light successfully renegotiated Light Energia's interest in the capital stock of Renova Energia with RR Participações and CEMIG Geração e Transmissão. This transaction allowed CEMIG GT to enter Renova's control block, enabling the acquisition of 51% of Brasil PCH's stock and strengthening Renova's cash to be allocated to wind power projects already contracted and new growth opportunities in renewable energy assets. After the transaction, Light Energia will hold between 11.7% and 15.9% of Renova Energia's capital stock.

On August 8, 2013, Light returned the concession of UHE Itaocara, as the period remaining for the power plant's implementation and operation does not ensure a profitable operation.

2014

On January 28, 2014, Light S.A. announced a shareholders' agreement between the Company and Furnas Centrais Elétricas S.A. ("Furnas") related to the management of the special purpose entity Energia Olímpica S.A. ("SPE Energia Olímpica"), whose purpose is the implementation, construction, operation and maintenance of a substation to supply electricity to the Rio de Janeiro Olympic Park.

On May 9, 2014, it was approved the contracting of the supply of equipment and services for the automation of aerial and underground networks through an Integrated System, using Smart Grids and Devices ("Smart Grid Project"), in its subsidiary, Light Eletricidade S.A. This equipment has the purpose of covering measuring and automation devices, allowing real-time analysis and contributing directly to reduce non-technical losses and delinquency, in addition to improving data management and quality.

In June and July 2014, Light came to prominence supplying energy during the World Cup. The organizational structure included approximately 1,000 professionals. Based on good strategic planning and tactical scheme, field teams located in strategic positions were responsible for inspections and preventive maintenance.

On July 24, 2014, Light S.A. sold 100% of its interest in CR Zongshen E-Power Fabricadora de Veículos S.A. ("E-Power"), equivalent to 20% of E-Power's capital stock, to CR Zongshen Fabricadora de Veículos S.A. ("CR Zongshen"), extinguishing E-Power's shareholders' agreement between the Company and CR Zongshen, without any remaining obligations for the signatory parties.

2015

On April 30, 2015, the Consortium UHE Itaocara, comprising the subsidiary Itaocara Energia Ltda., with a 51% interest, and Cemig Geração e Transmissão S.A., with the remaining 49%, was declared the winner of the A-5 Auction held by ANEEL, related to the Itaocara I hydroelectric power plant.  The project will be built in the Paraíba do Sul River and will have an installed capacity of 150.0 MW, and assured energy of 93.4 MW average. The UHE Itaocara Consortium destined 95.5% of its assured energy to the Regulated Contracting Environment, at a selling price of R$ 154.99/MWh, with the Power Purchase Agreement starting in January 2020, and a supply period of 30 years. Operations are believed to start in the second quarter of 2018, and the total estimated investment is of R$ 1 billion.

Company Profile

Light is present in 31 municipalities of the state of Rio de Janeiro, covering a region with more than 10 million people. At the end of 2014, it had 4,221,622 clients. Headquartered in the city of Rio de Janeiro, the Light Group comprises the following companies: Light S.A. (holding company); Light Serviços de Eletricidade S.A. (Light SESA), the distribution company; Light Energia S.A. (Light Energia), the generation company; Lightger S.A. (Lightger), responsible for the Paracambi SHP project; Itaocara Energia Ltda. (Itaocara); Amazônia Energia Participações S.A. (Amazônia), to participate in the Belo Monte Hydropower Plant project; Light Esco Prestação de Serviços S.A. (Light Esco) and Lightcom Comercializadora de Energia S.A. (Lightcom), both of which specialize in energy trading; Light Soluções em Eletricidade Ltda. (Light Soluções); Energia Olimpica S.A. (Olímpica); Axxiom Soluções Tecnológicas S.A. (Axxiom), a services company; Instituto Light, an institution.

Light has 4,282 employees and, in 2014, the company reported net revenue of R$8,289.9 million, excluding construction revenue. Of this amount, 88% accounted for the company’s share in the distribution market, its most representative segment. The energy generation and energy trading and services segments represented respectively 7% and 10% of total net revenue.

On December 31, 2014, total capitalization, which corresponds to the sum of loans and financing (current and long term) and Light's total shareholders’ equity, amounted to R$10,210.9 million, R$6,582.3 million of which was debt and R$3,628.6 million, shareholders’ equity. In 2014, the company posted EBITDA of R$1,809.7 million and net income of R$662.8 million.

Light SESA

Company responsible for electricity distribution. It is Brazil’s fifth largest energy distributor in terms of volume of energy distributed to its captive market, according to Aneel’s 2013 Decision Support System Report.

In 2014, the energy distributed in Light's concession area came to 26,493 GWh, a 3.0% increase compared to 2013. Of the energy distributed, 33.8% corresponded to residential consumption, while 31.4%, 20.0% and 14.8% were consumed by the commercial, industrial and other segments, respectively.

Light's investments in the distribution segment totaled R$932.1 million in 2014, with special emphasis on (i) investments in the development of distribution and expansion networks, to keep pace with market growth, strengthen the network and improve quality, including of the underground network; and (ii) investments in energy loss projects (network protection, electronic meters and fraud regularization). In 2014, the company’s net operating revenue totaled R$8,258.3 million, while EBITDA and net income came to R$1,250.2 million and R$349.1 million, respectively.

Light Energia

Light Group company responsible for electricity generation. The generating park comprises six hydroelectric power plants and two pumping stations, with installed capacity of 855 MW and 549 MWm of assured energy.

Light's generating park has health and safety, environment and quality management certificates. Environmental preservation initiatives in reservoir areas, many of which are in partnership with universities, research centers and Non-Governmental Organizations, directly benefit the population of the state of Rio de Janeiro.

In 2014, the total amount of power sold by Light Energia was 4,526.3 GWh, a 7.4% reduction over 2013. In 2014, there were no sales in the Regulated Contracting Environment (ACR) and in the Unregulated Contracting Environment (ACL), 4,556.5 GWh were sold. The generating company’s net operating revenue totaled R$601.6 million, while EBITDA and net income came to R$491.3 million and R$267.7 million, respectively. In 2014, the average price in the ACL was R$110.2/MWh.

The reduction in sales volume was mainly due to poor hydrological conditions in the national system, impacted by the low level of the reservoirs and a delayed start of the rainy season. As a result, the company had to purchase energy in the spot market to meet its demand. This represents a reduction in the volume of energy sold in 2014.

Light Esco / LightCom

Light ESCO is the group company specialized in energy solutions, including everything from structural projects to the sale of utilities and energy efficiency services.In 2014, of the twelve (12) ongoing projects, six (6) were finalized and delivered to clients. Among these projects, the most important are Light Esco’s Cogeneration Central for Rio de Janeiro Refrescos’ plant and the solar power plant at the Maracanã soccer stadium.

LightCom is the group company responsible for commercialization, which in addition to the purchase and sale of energy, also offers advisory services to free and captive consumers, including before the Electric Power Commercialization Chamber (CCEE). LightCom closed 2014 with 81 energy commercialization clients. 

In 2014, the company sold 5,338.4 GWh, 28.5% more than in the previous year. The companies’ joint operations recorded net operating revenue of R$899.2 million, and EBITDA and net income of R$82.1 million and R$58.6 million, respectively.

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