Good morning, ladies and gentlemen. Welcome to Light's webinar to announce the results of quarter three, 2024. Today's meeting will be conducted in Portuguese and simultaneously translated into English. To change your language, please click on the button "Interpretation" on the bottom of your screen.
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This meeting is being recorded, and the replay will be available on the company's IR website, where the other materials used in this presentation can also be downloaded.
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All participants will be in a listen-only mode during the company's presentation, after which we will open the floor for questions, and at this point, further instructions will be provided.
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Before proceeding, let me emphasize that any forward-looking statements that may be made during this presentation relative to the company's business prospects, projections, and operating and financial targets are based on beliefs and assumptions of the company's management, as well as on information currently available to them. These forward-looking statements are not a guarantee of performance. They involve risks, uncertainties, and assumptions, and they refer to future events and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry aspects, and other operational factors may affect the future results of the company and may lead to results that differ materially from those expressed in said forward-looking statements.
After all due legal announcements, we will start our presentation today with Mr. Alexandre Nogueira, CEO, for the company's initial remarks, followed by Mr. Rodrigo Tostes, CFO and IR Director, who will comment on the company's results. Now, I would like to hand the webinar over to Mr. Alexandre. Mr. Nogueira, you may proceed.
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Good morning, everyone. Welcome to Light's earnings call for the third quarter of 2024. Today, on our call, we're going to cover some important progress that we made in implementing the company's judicial recovery process. Starting with this process, in September, the company successfully finalized the payment of around 30,000 creditors who had up to BRL 30,000 to receive. As provided for in the plan, we also had a capital increase of BRL 300 million from the holding in our distribution business. In October, the company completed the scheme of arrangement, a legal process that takes place abroad that will allow the plan to be implemented for external creditors as well. Once again, the vast majority of creditors, more than 99%, voted in favor of this process.
Just this week, the company concluded the process of recognizing the effects of the judicial recovery in the United States through Chapter 15. With the end of this first stage abroad, Light announced the result of the choices made by creditors in Brazil and abroad as set out in the judicial recovery plan. The calculation of the allocation showed a significant demand from creditors willing to convert their credits into equity in Light, with a limit of BRL 2.2 billion set out in the plan, which was exceeded by 50%. This interest in owning a piece of the company showed once again the creditors' support and confidence in Light's recovery.
The company is now in the process of implementing the swaps over the course of the fourth quarter, and at the end of this process, we will have a reprofiled debt with less cash flow pressure in the short term as well as longer payment terms. Light's new financial reality resulting from the implementation of the measures set forth in the plan will be reflected in the company's results from the fourth quarter onwards. Now, the company continues to focus on transforming its operation, acting with a customer-oriented approach and operational efficiency. In the areas where it can safely proceed, Light is managing to combat losses and improve its revenue. This quarter, our distribution business collection over the last 12 months was up year-over-year and reached 98.8%.
This growth, combined with efficient cash management, has ensured our soundness, with a position at the end of the period of over BRL 2 billion in cash. Light is undergoing an intense transformation, but this is without neglecting the investments required to guarantee quality service to the population of Rio de Janeiro. As usual, we are preparing our operation for the period of greatest demand, which is during the summer, and we are strengthening our field team to increase the efficiency of our response to extreme weather events. Since October, the company has formed 54 new fully operational teams, in addition to another 51 teams currently dedicated to other fronts of the operation and prepared to reinforce the service to the population during the Summer Plan.
I would also like to highlight our team's efforts and work on the project to renew the supply system for [Foreign language] . In August, we completed the restoration of the submarine cable that takes power from the mainland to the islands, and in October, we delivered the new underground transmission network and submarine transmission network, which will reinforce the existing network. Year to date, until September, the company had spent more than BRL 300 million on this renovation. On the institutional front, Light launched an important program in October, the ProRio, the Energy Recovery and Default Reduction Program, with the aim of drawing up permanent strategies to tackle two major problems: non-technical energy losses, in other words, illegal connections, and payment defaults.
The program promotes joint action between the public and private sectors, supported by eight strategic pillars: political and institutional, technological, behavioral, operational, social, economic, regulatory, and legal. After an initial diagnosis, the aim is to draw up measures to permanently combat losses. Lastly, but also very important, Light continues to focus on the sustainability of the concession with a view to renewing the contract, which expires in 2026. The company will contribute to the public hearing started by ANEEL to regulate the presidential decree from May, which set out the guidelines for renewing distribution concessions. The document stipulates a differentiated treatment both for the recognition of non-technical losses and the quality criteria in high-risk areas within the concessions. And the high-risk areas, the resolution of this aspect is fundamental to the company's economic and financial sustainability.
Reducing commercial losses and payment defaults are crucial issues for the operation and for Light's positioning, since a more balanced market will allow our distribution business to target the appropriate resources towards improvements in the provision of services and the operation of its assets, with direct benefits for end consumers of electricity. I will now hand the webinar over to our CFO, Rodrigo Tostes, who will give you more details on the company's results. At the end of this presentation, we will be available in case you have any questions. Tostes, please go ahead. Thank you, Alexandre. Good morning. As you heard from Alexandre at the opening of our webinar, the company has been making satisfactory progress in the strategic pillars that will support the future that we're building for Light.
This quarter, I'm going to comment on the operating results, as usual, and I'm also going to give you an overview of the new profile of our debt once all the approval processes for the expected restructuring of the new instruments are completed. We only have left the delivery of the new bonds. An important sign that we are moving in the desired direction in this restructuring process is that this quarter, our statements will only have an emphasis related to the risk of implementing the plan, with us having overcome those more imminent uncertainties relative to our operational continuity that initially caused us to abstain from giving any opinions.
Starting with the highlights of the quarter on slide number four, I would like to stress the message that the company continues to focus entirely on actions to preserve its cash and improve the financial soundness of our distribution business, which, as we know, is where the main short and medium-term challenge lies. In this sense, we achieved important results for the distribution business in the period. We ended quarter three, 2024, with a solid consolidated cash position of BRL 2.4 billion. This result meant an increase of more than BRL 300 million compared to the position we had in December last year. The second point, which is being celebrated by the company, is the consolidated net income of BRL 157 million in quarter three. Third, the collection rate continues to improve and reach 98.8% in the past 12 months, the 12 months that ended in September.
This indicator was up by more than 0.8 percentage points year-over-year. This was driven by the multiple initiatives implemented by the company throughout 2023, which are now generating a positive impact in 2024. Year to date, the distribution adjusted EBITDA was about BRL 1.2 billion, an increase of nearly 27% year-over-year. Finally, the adjusted EBITDA minus CapEx, another important indicator that we use as a proxy for operating cash generation, reached BRL 157 million, up to BRL 190 million year to date compared to the same period in 2023. Now, moving on to slide five, we will briefly comment on the evolution of our distribution market.
In the year to date, we saw total market growth of more than 2% year-over-year, with positive dynamics in the three main consumption segments: residential, commercial, and industrial, accounting for a total expansion of 523 GWh in the period. This expansion was partially offset by the result of the other category, where we saw a drop of 142 GWh due to an atypical behavior recorded in quarter three in the concessionary segment. On slide number six, we have the distribution Adjusted EBITDA. In the first nine months, the distribution company's Adjusted EBITDA was approximately BRL 1.2 billion, an increase of more than BRL 250 million year-over-year.
This growth is due first to the expansion of the net margin in line with the growth of the bulk market, as we saw on the previous slide, and the positive evolution of the PECLD resulting from initiatives to protect revenue and increase collection. These results more than compensated for the increase in PMSO expenses and contingency provisions. On slide number seven, here I briefly comment on the distribution company's consecutive operating cash generation measured by the adjusted EBITDA minus CAPEX. Year to date, the indicator has reached BRL 545 million, an increase of BRL 190 million year-over-year, or a percentage change of more than 50% year-over-year. Year to date, it reached BRL 554 million, and an increase.
It is worth noting that while our EBITDA continues to expand as a result of our focus on operations and generation of results, the company has maintained discipline in the execution of its investments, balancing network quality and maintenance with a guarantee of a financial balance. Year to date, the CAPEX grew by approximately BRL 59 million, a 10% increase year-over-year, due to investments in the maintenance and modernization of the supply system in Ilha do Governador and Ilha de Paquetá. Moving on to slide eight, here we show the EBITDA of our generation and trading segments. Year to date, this business line generated an EBITDA of BRL 503 million, down 16.7% year-over-year.
This result is mainly attributable to the drop in margin due to the termination of old contracts in our trading portfolio, which were more profitable than the current average due to the higher energy sales prices at the time. In respect to our trading vertical, I'd like to take this opportunity to share a little about the transformation we're making at LightCom. Over the course of this year, the company has undergone extensive restructuring with the creation of new business lines and expansion of its trading team, resulting in the offer of new products and the doubling of its customer base. We are preparing LightCom to continue growing in a sustainable way, and we believe in its potential to consolidate its position as a benchmark in clean and sustainable energy, delivering diversified, efficient, and personalized solutions in the free energy market.
This is the end of the considerations about the quarter's results, but before we move on to the Q&A session, I would like to make a few comments about our judicial recovery process. On slide number nine, I would like to remind you how far we have come in the judicial recovery process. After a lot of effort, dedication, and delivery by our team and our advisors in recent months, we have completed important milestones. For example, first, the payment of more than 30,000 small creditors' claims below BRL 30,000. Completion of the payment method selection process by creditors, the completion of the legal rite of the Scheme of Arrangement and Chapter 15, the disclosure of the final choices, and finally, the RCA that approved the issuance of new instruments by Light S.A. on October 24th.
Now, November 28th will be the deadline for the current shareholders to exercise their preemptive rights over the convertible debt, along with the corporate act to seek approval for the amendments and issuance by Light SESA and Light Energia of the other instruments set forth in the plan. I would like to stress that our internal team and our advisors are working tirelessly to deliver the new bonds to creditors in Brazil and abroad on time. Now, moving on to the next and final slide, I'd like to share with you a little of what Light SESA's new debt profile will look like. On the left, we can see the balance of the pro forma gross debt, which was the subject of the creditor selection of payment options.
The balance of BRL 9.58 billion was made up of the gross debt subject to restructuring, totaling BRL 9.1 billion, plus the interest set forth in the plan. Based on the calculation of the choices and the limits established in the plan, this amount was restructured as follows. BRL 2.2 billion were allocated in instruments convertible into Light S.A. shares, automatically converted when the prerequirements are fulfilled, such as the renewal of the concession and increase in private capital as provided for in the plan. BRL 4.1 billion remunerated annually at IPCA plus 5%, or the equivalent in dollars, with interest paid every six months, a grace period to start amortization and maturity in eight years. BRL 2.1 billion annually paid by IPCA plus 3%, or the equivalent in dollars, also with half-yearly interest payments and maturity in 13 years.
About BRL 320 million of credits allocated in the non-voting creditor modality, whose total amount will be deducted in 30%. This amount will be paid annually at IPCA, capitalized to the principal in the same periodicity, with a total maturity in 15 years. About BRL 130 million allocated in the financial creditor modality and remunerated annually at CDI plus 0.5%. Finally, BRL 238 million, which were allocated in the creditor modality with credits of up to BRL 30,000 already paid by the company in September this year.
Now, considering the renewal of our concession as our base scenario, we believe that the distribution company will emerge from this process with a capital structure much more in line with its business, with around 70% of the debt indexed to the IPCA, which also determines the company's revenue dynamics, and with the remaining 30% of the debt pegged to the dollar and the CDI. In addition, if we consider the amortization schedule of the principal of new debts, already reflecting the results of the process of payment method selection and the discount on the credits of non-opting creditors, the company will have an approximate duration of 8.4 years.
At the end of this restructuring, the distribution company will have a more appropriate capital structure with a more prolonged debt, removing the pressure to pay out the principal in the short term, and with an average cost more in line with the financial reality of our operation, consistent with our objective at the beginning of this process, which was to guarantee the company's sustainability. That concludes my remarks, and I hand it over now to the moderator to start the Q&A session. Thank you. [Foreign language] .
We will now open the floor for questions. To ask a question, please click on "Raise Hand," and we will call your name and open your microphone.
If at any point your question is answered, you can exit the waiting line by clicking again on "Raise Hand." You can also use the Q&A window to send your questions. The Q&A button is on the bottom of your screen. Our first question is from Ricardo Peixinho, Tagus Investimentos.
What do you expect? What is the expected date for the swap? [Foreign language] . Ok. [Foreign language] .
I think the first question is about the expected date for the swap. The company has already started the development of this material with its advisors. We do not yet have a deadline. We are striving to finish as soon as possible, and we expect that this will not take long and should be completed in the coming months. [Foreign language] . The next question is from Conrado Ramos.
How are you coping with the record-breaking PNT at 69%? The expected renewal already includes the change in this measurement. [Foreign language] .
Hello, Conrado. Good morning. This is Alexandre. Now, in respect to losses and default, we are expecting to offer differentiated incentives to companies that have high-risk areas in their concession area, which is the case of Light. We are now reviewing the conditions, and we will contribute to the public hearing that is underway, offered by ANEEL, and we will timely offer our inputs about this specific aspect regarding Light's concession area. [Foreign language] . To send a question to the speakers, please click on the button "Raise Hand," and we will open your microphone. If your question is answered at any point, you can click on the same button again to remove yourself from the waiting line.
You can also write down your questions using the Q&A icon on the bottom of your screen. [Foreign language] . Hello, Daniel. This is Rodrigo Tostes speaking. [Foreign language]. The next question is from Daniel Strosberg.
The right of preference of the convertible debenture should be manifested by November 28th? [Foreign language] . Hello, Daniel. No. There's no obligation, but it can be expressed. It's optional. You can express this right until November 28th. [Foreign language] . To send a question, please click on the button "Raise Hand," and we will open your microphone. If at any point your question is answered, you can remove yourself from the waiting line by clicking on the same button again, and you can also send your questions using the Q&A window on the bottom of your screen.
[Foreign language] . The next question is from Carlos. Carlos, you can ask your question now.
[Foreign language] . Good morning. [Foreign language] . I really liked your presentation, and my question is, Rodrigo, when will the new bonds after the judicial recovery , the convertible debentures , and etc., when will they be in the accounts of the debenture holders and creditors? When will these bonds be available to them? Thank you.
Carlos, [Foreign language] . Hello, Carlos. Good morning. [Foreign language] About the registration and when you're going to see those bonds after we swap them with B3, then they're going to be negotiable and available to you. Thank you. [Foreign language] .
The next question is from Juliano, AGG. Juliano, your microphone is open now. [Foreign language] .
Hello, good morning. I have a question.
There was a discussion at ANEEL this week about the limit leverage, and they mentioned the name of four companies, and among them was Light, and they were focusing on the need to increase the capital by more than BRL 4 million. I have three questions here. My first question is, do you believe that instruction by ANEEL will actually take place? Number two, will you be able to increase your capital by the amount required? I think the amount will, and the term will be discussed, but I think it will be about 90 days. And third, what will happen with the concession if you do not fulfill that requirement? Thank you.
Hello, this is Alexandre. Thank you for your question, Juliano. We are monitoring the situation. We're monitoring what will be ANEEL's ruling. Of course, this is an analysis that is made under the current contract.
Light also has a differentiated view of the renewal of the concession, like we mentioned in our presentation, and the condition for implementation of the plan. But what I can anticipate and tell you now is that Light is closely monitoring the entire process. Thank you. Alexandre, can you just tell us what could happen theoretically if you cannot fulfill that requirement? Your contract is the 2015 contract, right? Yes. [Foreign language] . The take is that Light fits into that situation, and we're also pursuing the financial capacity after what was established in the decree. And actually, the decree is from May. Thank you. [Foreign language] . This question and answer session is now closed. Now, I will hand the conference back to Mr. Alexandre for his final remarks. Bom, thank you all for your time.
This is the end of Light's webinar for Q3 2024. Thank you all for attending, and I would like to once again stress that our investors' relations team is always at your service should you have any questions in the future. Thank you for attending and have a great day.