Investor Presentaiton
Conditions of the renew of
Distribution Concessions
Eletrobras
Standard Guidelines:
1) Efficiency of service quality
2) Conditions of Governance and
transparency
3) Minimum conditions of Economic
and Financial Sustainability
4) Modicity of the Tariff
start of the verification
of EBITDA adjusted for
non-recurring factors
2015
2016
2017
5) Operational and economic
rationality
EBITDA - QRR > 0
New contract or
VNR
EBITDA > 0
Cash generation
2018
1
Net Debt <
EBITDA-QRR 111% SELIC
2019
Net Debt
EBITDA-QRR
2020
1
80% SELIC
Violation of minimum sustainability conditions shall imply:
• Annual capitalization in the same amount of the deficit by the controllers;
• Limitation of distribution of dividends to the legal minimum;
• End of the concession. In 2016 it will be allowed that the minimum condition will be made through
capitalization, without additional requirements
VNR
=
New Replacement Value
QRR = Regulatory Reintegration Quota (form of replacing the investments made for the provision of services throughout the
useful life of the goods).
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