Corporate Presentation

April 2013

Light Holdings
Light S.A. (Holding)

100%

100%

51%

100%

25.5%

100%

100%

100%

100% Instituto Light

51%

20%
CR Zongshen E-Power Fabricadora de Veculos S.A.

Light Servios Light Energia de Eletricidade S.A. S.A.

Lightger S.A.

Itaocara Energia Ltda.

Light Esco Amaznia Prestao de Energia S.A. Servios S.A.

Light Solues Lightcom Comercializadora em Eletricidade de Energia S.A. Ltda.

Axxiom Solues Tecnolgicas S.A.

21.99%

100%

100%

9.77%

Renova Energia S.A.

Central Elica Central Elica So Judas Fontainha Tadeu Ltda. Ltda.

Norte Energia S.A.

33% EBL Cia de Eficincia Energtica S.A.

51%

Guanhes Energia S.A.

Distribution

Generation

Commercialization and Services

Institutional Systems

Electric Vehicles

Rankings
Among the largest players in Brazil
INTEGRATED Net Revenues 2012 R$ Billion DISTRIBUTION Energy Consumption in Concession Area (GWh) - 2012

18.5
37,626

15.0 11.8 8.5 6.9 6.6

Eletropaulo Cemig Copel CPFL Paulista Light

24,714 22,737 21,467 20,054 15,018

Cemig

CPFL

Neoenergia

Copel

Light

EDP

Celesc

GENERATION PRIVATE-OWNED COMPANIES Installed Hydro-generation Capacity (MW) 2012

5,560

2,658

2,241

2,219

2,012
EDP

877
Light

1 Source: Captive market 2 Source: Companies reports * Considers the 9 MW of Renovas SHPs

Tractebel

AES Tiete

Duke

CPFL

Shareholders Structure
BTG PACTUAL
14.29%
2.74%

SANTANDER
28.57%

5.50% 28.57% 5.50% 28.57% 5.50%

FIP REDENTOR
75%

CEMIG
25% 6.41%

11 Board members: 8 from the controlling group, 2 independents e 1 employees nominated A qualifying quorum of 7 members to approve relevant proposals such as: M&A and dividend policy

VOTORANTIM

19.23%

BANCO DO BRASIL

PARATI
25.64%* 100%

MINORITY
3.19% 0.42% 96.81%

REDENTOR ENERGIA
100% 13.03%

FIP LUCE
100% 13.03%

FOREIGN
57.78%

NATIONAL
42.22%

CEMIG
26.06%

RME
13.03%
Controller Group 52,1%

LEPSA
13.03%

BNDESPAR
13.46%

MARKET
34.41%
Free Float 47,9%

Light S.A. (Holding )

Percentage in blue: indirect stake in Light

*12.61% (RME) + 13.03%(LEPSA)

Corporate Governance
General Assembly

Fiscal Council Board of Directors

Finances Committee

Human Resources Committee

Auditors Committee
Chief Executive Officer
Paulo Roberto R. Pinto

Governance and Sustainability Committee

Management Committee

Chief Financial and Investor Relations Officer

Joo B. Zolini Carneiro

Chief Distribution Officer

Jos Humberto Castro

Chief Energy Officer

Evandro L. Vasconcelos

Chief HR Officer
Andreia Ribeiro Junqueira

Chief Legal Officer Fernando Antnio [Link]

Corporate Management Officer Paulo Carvalho Filho

Chief Business Officer Evandro L. Vasconcelos*

Interim*

Chief Communications Officer Luiz Otavio Ziza Valadares

LGSXY
ADR-OTC

Distribution Business
6th largest energy distribution company in Brazil (2011)

LIGHT

4.1 million clients (serving 10 million people) Energy sales (2012) 23,384 GWh 70% of the consumption of Rio de Janeiro state (Brazils 2nd GDP)
6

Energy Consumption
Distribution Year

TOTAL MARKET (GWh)

+2.9% +2.0%

21,492

22,384

22,932

23,384

Out ros Cativos

Free 14% Others 15%

15%
With the consumption no longer billed by the change in criteria, the total energy consumption increase in 2009 the concession area would 2010 be 3.0% over 2011.
2011 2012

Industrial 7%

27,5

25,5

23,5

25.0C

24.5C

24.0C

24.3C

21,5

19,5

17,5

2009 2009
2009

2010 2010
2010

2011 2011
2011

2012 2012
2012

Comercial 29%

Commercial 29%

Residential 35%

15,5
1Note:

To preserve comparability in the market approved by Aneel in the tariff adjustment process, the billed energy of the free customers Valesul, CSN and CSA were excluded in view of these customers planned migration to the Basic Network.

Total Market
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET YEAR
+2.0%

22,932 3,056
+9.1%

23,384 3,330

-3.2%

8,418

8,149
-0.5%

6,967 657

7,599 743
+3.0%

19,877 3,712 191 3,521

20,054

3,944

3,925 6,310 6,856

3,603 185

2,213 1,731
2011 2011 2012 2012 2011 2011

2,396 1,528
2012 2012

3,417

2011 2011

2012 2012

2011 2011

2012 2012

2011 2011

2012 2012

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE 8

Prospects for State of Rio

Investments of R$ 211.5 billion in the State of Rio de Janeiro

Events Schedule

Period 2012-2014
Oil R$ 107.7 bn 50.9% Tourism R$ 1.8 bn 0.9% Others R$ 1.9 bn 0.9% Olimpic Facilities R$ 8.6 bn 4.1% Transformation Industry R$ 40.5 bn 19.1% Infrastructure R$ 51.0 bn 24.1%

Confederations Cup World Youth Day World Cup Olympics Paralympics

Jun, 15 to 30/2013 Jul, 23 to 28/2013

Jun, 12 to Jul, 13/2014

Aug, 5 to 21/2016 Sep, 7 to 18/2016

Source: Firjan (Industry Federation of Rio de Janeiro)

Economic activity leading to more demand

The State of Rio de Janeiro will attract $ 250 billion as investments by 2016
MRS (ND)

AMBEV (ND) NeoBus (10MW)

Nestl (3MW)

Reluz (ND) Embelleze (5MW) Coquepar (42MW) Procter & Gamble (10MW) Alpargatas (ND) RHI (5MW) Lavazza (3MW) Ajebras (5MW) Centro Tecnolgico Fundo (ND)

Petrobras (15MW) CSN (100MW) Gerdau (30MW) Usiminas (20MW) LLX (40MW) Base Naval(25MW) Hotel Comfort (3MW) Gerdau (90MW) Shop. Campo Grande (3MW) Rolls Royce (3MW)

Rio de Janeiro

Source: Associao Brasileira de Municpios ABM website.

Bio Manguinhos (ND) Hermes (3MW) Votorantin (ND) Ongoing (ND) Bunge (ND) AMBEV (2MW) GE (6MW) Shop. Metropolitano (10MW)

Maracan (ND) Porto Maravilha (ND) Morar Carioca (ND) Aeroporto Tom Jobim (5MW) Estaleiro Inhauma (ND) Atento (2MW) Expanso Nova Amrica (4MW) Expanso Norteshopping (3MW)

Shopping Village Mall (7MW) Edifcio Tishman Speyer (5MW) Expanso Via Parque (2MW) Casa Granado (3.5MW) Hospital So Lucas (4MW) Metr Ipanema (8MW) Flow Serve (11MW) Alog Data Center (12MW)

10

Collection rate by segment

YEAR

97.4%

98.0%

94.3%

96.4%

101.0%

98.8%

102.6%

102.5%

Total Total

Retail Varejo

Large Clients Grandes Clientes

Public Sector Poder Pblico

2011

2011

2012

2012

11

Losses
12 months

Reflects exclusion of long term delinquent customers from the billing system, according to Resolution 414 by Aneel.

45.4% 42.4% 42.1% 41.8%

41.6%

41.3%

40.7%

40.4%

41.2%

42.2%

43.1%
33.3%

7,549

7,544

7,493

7,543

7,619

7,627

7,582

7,665

7,838

8,047

8,626 63% Non-Risky Area 37% Risky Area

5,352

5,330

5,278

5,312

5,326

5,229

5,247

5,316

5,457

5,615

6,097

2,197

2,214
Sep/10 40787

2,215
Dec/10 40878

2,231
Mar/11 40969

2,293
Jun/11 41061

2,328

2,335

2,349

2,381

2,432

2,529

Jun/10 40695

Sep/11 41153

Dec/11 41244

Mar/12

Jun/12

Sep/12

Dec/12

Non-technical losses GWh % Non-technical losses/ LV Market

Technical losses GWh % Non-technical losses / LV Market - Regulatory

12

New Technology Program

Light aims to reduce losses through investments in new technologies, integration of operational activities, increase of public awareness and institutional partnerships with interested agents.

Grid shielding projects

Technology used in regions in which conventional measures are not effective

Areas that present high levels of non-technical losses

Control room

Actual grid
Medium voltage

Shielded grid
Medium voltage Centralized meter

Low voltage 9m

Low voltage

3m

Mechanical Meter

Display

13

New Technology Program

Meters Installed
(Thousands)
341 208 38 303 38 38

110

170

Monitoring, reading, cutting and reconnection

72
2011 2011 2012 2012
CENTRALIZED (LANDIS GYR. CAM and ELSTER)

of customers telemetry MCC (Measuring Center Centralized) in areas of high losses and aggressiveness to the network hindering interference in networks inappropriate

2010 2010

Prioritization Technology

2010 2011 INDIVIDUAL

(ITRON)

2012

14

New Technology Results

Individual

Losses (before): 26% Losses (current): 7%

15

New Technology Results

Centralized
Losses (before): 48% Losses (current): 14%

16

Zero Losses Area

Area: Nova Cidade Neighborhood - Nilpolis

FEATURES Clients

LV 10,083

MV 3

TOTAL 10,086

Network (KM.)
Transformer (QTY.) Power (MVA)

50
107 12.9

23

73

RESULTS Collection (R$ MN) Non-technical losses Nov/10 Dec/11

2010 8.9 41.7%

2011 10.3 7.4%

17

Losses Reduction - Business Case

An example
REAL CONSUMPTION 300 kWh ENERGY SAVED 100 kWh LOST ENERGY 200 kWh BILLED CONSUMPTION 100 kWh OTHER EFFECTS (BY-PRODUCTS): BAD DEBT PROVISION REDUCTION OPERATIONAL COSTS REDUCTION BILLED CONSUMPTION INCREASE 100 kWh NEW METER INSTALLATION

CAPEX GOES TO THE RAB

18

Transformation of risky areas

19

Transformation of risky areas

Santa Marta Clients Losses Delinquency Before 73 90% 70% After 1,605 6% 2%

Alemo Batan

Macacos Andara Salgueiro Formiga

S. Marta
Mang. e Babil.

64.7 thousand clients inside pacified communities with new meters and network

Cidade de Deus

Borel e Casabranca

Tabaj. e Cabr. Cantag. e Pavoz.

20

GENERATION BUSINESS

Installed Capacity
868 MW

51% 100%
SHP Paracambi 13 MW
Paraiba do Sul River

100%

Lajes Complex
SP

RJ

HPP Ilha dos Pombos

HPP Ilha dos Pombos 187 MW

HPP Santa Branca

HPP Santa Branca 56 MW

100%

100%

100%

HPP Fontes Nova 132 MW

HPP Underground Nilo Peanha - 380 MW

HPP Pereira Passos 100 MW

22

Re-pricing of existing energy

Conventional Energy Balance Assured energy (MW average)
553 25 53

539 25 52

535 25
206

535 25
228

535 25

535 25

535 25

535 25

535 25

535 25

259

267

272

282

282

282

340 475
304 282

251

243

238

228

228

228

122
2012
Average sale price to free market (R$/MWh)

2013
135

2014
148

2015
151

2016
155

2017
157

2018
157

2019
157

2020 Hedge
157

2021
157

Energia contratada (ACR)

128

Energia contratada (ACL)

Recursos disponveis para comercializao

Contracted Energy (Regulated)

Contracted Energy (Free)

Available Energy

Hedge

Database january. 2012 Average price to Regulated Market (dec/11): R$ 75/MWh

23

Generation Expansion

Paraiba do Sul River

Lajes Complex SP

RJ

HPP Itaocara
Installed Capacity: 151 MW The construction is to be started by the end of 2012. Commercial Operational Start: 2nd half of 2015. Preliminary License already issued.

SHP Lajes
Installed Capacity: 17 MW The construction is to be started by the 2nd half of 2012. Operational Start: 2nd half of 2014; Installation License already issued.

24

Renova

Shareholder Structure
December 2012
FIP Santa Barbara Others 6.1% FIP Caixa Ambiental 4.0% 7.1% Santander 3.0% InfraBrasil 15.2% RR Participaes RR Participaes 21.99%
21.99%

Controlling Shareholders
64.6% CS Light 32.3% CS 0% PS RR Participaes 32.3% CS 0% PS

By the middle of 2011, Light signed an investment agreement of $360 million and the PPA (Power Purchased Agreement) of 400MW of installed capacity to have 25.9% stake at Renova. This year BNDESPAR is becoming a shareholder after a capital increase in Renova. Light keeps a 21.99% stake.

Auctions Performance The biggest winner in the Reserver Energy Auction of 2009 The biggest winner in the Reserver Energy Auction of 2010 2nd largest winner in the Auction A-3 of 2011

BNDESPAR 12.1%

Light 21.99%

Light 21.99%

RR Participaes (1) 8.5%

Companys Portfolio 41.8 MW of SHPs in operation under the PROINFA contract 294.4 MW of wind energy under construction to start the operation in Jul/2012 808.3 MW of contracted wind energy to be delivered between 2013 until 2017 Pipeline 5.8 GW under development Projects in the same area providing synergies and scale gains

Location
Wind Farms Inventory (SHPs) Basic Projects (SHPs)

(1)

Share of RR Participaes SA out of the control block

25

Renova - Contracts
Average Load Factor (%) CAPEX/MW installed (R$ MN) Installed Capacity (MW) Operation Startup (Estimated) Estimated Energy (MW average) Contract Tariff (R$/MW) 182.06 160.65 130.76 100.91 90.07 Term (years) Index Loan BNB Contracted Sites

SHPP

20

IGPM

In operation since 2008 In operation since Jul 2012 Sep 2013

41.8

61.3

24.2

4.901

LER 2009

14

20

IPCA

293.6

50.8

148.9 (*)

3.996

BNDES Contracted

LER 2010

20

IPCA

162.0

52.7

86.8 (*)

3.878

BNDES Eligibility

Y-3 2011

19 years and 10 months

IPCA

Mar 2014

212.8

50.5

108.1 (*)

3.245

BNDES Eligibility

Y-5 2012

20

IPCA

Jan 2017

22.4

PPA Light 1

10 (E)

20

IPCA

Sep 2015

200.0

50.5(E)

100 (E)

3.245

PPA Light 2

10 (E)

20

IPCA

Sep 2016

200.0

50.5 (E)

100 (E)

3.245

26

Belo Monte - Overview

Norte Energia S.A. Shareholders Profile

Self Prod. 10.00% Amaznia Energia 9.77%

Technical data on the concession:

Concession period 35 years End of concession August 25, 2045

Technical data on the project:

Installed capacity 11,233 MW Main engine room 11,000 MW Auxiliary engine room 233 MW

Public sector 49.98%

Assured Energy (Average MW) 4,571 MW Reservoir 516 Km Flooded area/generation ratio of 0.05 Km/MW 5,000 families affected Estimated project cost (April 2010) R$ 25.8 billion

Others privates 30.25%

Other Informations:
Amaznia Energia will own 9.77% of the enterprise. Construction works estimated to take 9 years. Transaction does not affect Light s dividend flow

49.0% CS 100.0% PS 74.5% of total stock

51.0% CS 0.0% PS 25.5% of total stock

BNDES loan ensures leverage at low cost on favorable terms. Tender 30 years, fixed installments. 85% of items financiable. PSI line. Amaznia Energias equity in the project estimated at R$ 150 million (Apr. 2010), to be disbursed over 6 years. Expansion of generation portfolio: Increases Lights total generation portfolio by 280 MW

Amaznia Energia Participaes S.A 9.77% Norte Energia S.A (Belo Monte)

Terms for sale of electricity generated already set. Regulated Market: 70%; Free Market: 20%; Self-producers: 10%.

27

Guanhes
TOTAL CAPEX R$ Million
PCH Installed Capacity (MW) Assured Energy (MW average) ANEEL Authorization Operation - Start up Authorization Term Dores de Guanhes 14 8 11/22/2002 Dec/13 Senhora do Porto 12 6.77 10/08/2002 Dec/13 Jacar 9 5.15 10/29/2002 Feb/14 Fortuna II 9 5.11 12/21/2001 Oct/13 Total 44 25.03

269.2 60.2 57.8 151.2

Light Energia Cemig GT BNDES

Equity

Debt

30 years (with renewal for 20 years)

28

New Generation Projects

Investments in Renova, Belo Monte and Guanhes. In line with our strategy of growing in the generation business

Installed Capacity (MW) Expanso da Gerao (MW)

+ 59.8% 280 175 855 13 74* 942 9 77 22 1,505

Capacidade (+) PCH (+) Renova Capacidade (+) Renova Paracambi Capacity Capacity Light Paracambi Atual Energia
Considering 51% stake Considering 21.9% stake Considering 2.5% stake * 9 MW SHP + 65 MW Wind Farm (since jul/12)

Installed

(+) SHP

Current

(+) SHP (+) Lajes Lajes

(+) Itaocara (+) (+)Renova Renova Itaocara

(+) HPP

Capacity After (+) Belo (+) Belo (+) Guanhes (+) Capacidade Expansion Monte

Monte

Guanhes

aps expanso

29

RESULTS

Net Revenue
NET REVENUE BY SEGMENT (2012)*
NET REVENUE (R$MN)
Commercialization
4.1%

+9.6%

Generation
6.3%

6,944.8 794.7

7,613.1 669.3
* Eliminations not considered ** Construction revenue not considered

Distribution
89.6%**

+19.2

12.9%

1,815.1
237.8
24.5%

2,162.9
199.3 1,963.6 6,150.1

6,943.8

NET REVENUE FROM DISTRIBUTION (2012)

1,577.3

Network Use (TUSD) 2011 2011 2012 2012

4Q11 4T11

4Q12 4T12

(Free + Concessionaires) 9.4%

Residential 41.1%

Construction Revenue Revenue w/out construction revenue

Others (Captive)
12.6%

Industrial 6.8% Commercial 30.1%

31

Operating Costs and Expenses

COSTS (R$MN)* 2012

4T12

DISTRIBUTION MANAGEABLE COSTS (R$MN)

-12.4%

Non manageable (distribution): R$ 4,410.8

(74.0%)
-46.7%

1,258.9

1,103.4

279.7 Generation and Commercialization: R$ 445.1

(7.5%)

149.1

Manageable (distribution): R$ 1,103.4

(18.5%) R$ MN PMSO Provisions
PCLD Contingencies

4T11 4Q11

4Q12 4T12

2011 2011

2012 2012

* Eliminations not considered ** Construction revenue not considered

4Q11 149.6 56,8

35.3 21.5

4Q12 176.0 250.2

109.4 140.8

Var. 17.6% 340.8%

210.2% 554.9%

2011 646.8 299.4

251.3 48.1

2012 692.0 473.1

282.6 190.5

Var. 7.0% 58.0%

12.5% 296.0%

Depreciation Other operational/ revenues expenses Total

72.3 1.0 279.7

80.4 (357.5) 149.1

11.1% -46.7%

306.8 6.0 1,258.9

293.3 (355.0) 1,103.4

-4.4% -12.4%

32

EBITDA
CONSOLIDATED EBITDA (R$MN)
D 1.1 istrib 2 7 u i ,4; 75 o ; ,59 %

EBITDA BY SEGMENT* 2012

+17.7%

1,456.2

Distribution 75.2%

1,237.8
+49.5%

(EBITDA Margin: 17.4%)

483.9 323.6

Ge ra 2 2 o; 3 3 ,55 6,4 % ;

Commercialization 1.9%
(EBITDA Margin: 9.5%)

Generation 23.0%
Co

(EBITDA Margin: 76.4%)

4T11 4Q11

4T12 4Q12

2011 2011

2012 2012

me r *Eliminations not considered 2 7 , c iali 8; z 1,8 a o 6% ;

33

EBITDA
EBITDA 2011 / 2012 (R$ MN)

+ 34.5% + 17.7% 794 381 1,325

325 1,456 (175)

1,782

87

1,238 (706) (75)

EBITDA Ajustado 2T11

Adjusted EBITDA 2011

Ativos e Passivos Regulatrios

EBITDA 2T11

Receita Lquida

Regulatory Assets and Liabilities

EBITDA 2011

Net NonManagable Provisions Revenue Managable Costs (PMSO) operational/ revenues Costs

Custos No Custos Provises Gerenciveis Gerenciveis (PMSO) Other

EBITDA 2T12

EBITDA 2012

Ativos e Passivos Regulatrios

Regulatory Assets and Liabilities

EBITDA Ajustado 2T12

Adjusted EBITDA 2012

34

Net Income
ADJUESTED NET INCOME 2011 / 2012 (R$ MN) Lucro Lquido e Lucro Lquido Ajustado 2011/2012 - R$ Milhes + 59.9% + 24.0% 215 6 342 (85) (57) 424

639

218 399 58

EBITDA Ativos e EBITDA Ajustado Passivos 2T11 LL Ajustado Ativos e 2011 2T11 Net Regulatrios Adjusted Regulatory 2011

Receita Lquida

- 2011 Income 2011

passivos Assets and Regulatrios Liabilities

Custos No Custos Gerenciveis Gerenciveis EBITDA Resultado Impostos (PMSO) EBITDA Financial Taxes

Provises

Financeiro Result

Outros Others

EBITDA 2T12

2012 2012

Ativos e EBITDA Passivos Ajustado Ativos e LL Ajustado Regulatrios 2T12 Net Regulatory Adjusted passivos - 2012

Assets and Regulatrios Liabilities

Income 2012

35

Dividends
8.2% 4.2% 9.9% 1.7% 8.1% 8.1%
6.1%

408
100% 100% 76.3% 81.0% 100.0%

432 363 351

3.4%

3.3%

5.4% 2.4%

351
86.5%

257 203
50%

351 203

408

187

432

205 363 351 87 118

182

87 92

187

182

170 92

2007

2008 Payout

2009*

2010

2011

2012

1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13
Dividends Interest on Equity Dividend Yeld*

Minimum Dividend Policy

*Based on Net Income of the year. before IFRS adjustments

*Based on the closing price the day before the announcement.

36

Indebtedness leverage
Net Debt (R$ MM) and Net Debt / EBITDA
Investment Grade (brA) Rating (brA + ) Rating ([Link]) Rating (AA-(bra)) Dec/11

4,273

3,383

2.9 1,947 1,580 1,637 2.7

1.1

1.2

1.2

2008 2008

2009 2009
Net Debt

2010 2010

2011 2011
Net Debt/ EBITDA

2012 2012

Net debt = total debt (excludes pension fund liabilities) cash

37

Indebtedness
Real of R$ 375 million in October reduced the cost of debt and extended the amortization schedule TheCpre payment usto
NET DEBT
4,273.1

AMORTIZATION SCHEDULE* (R$ MN)

1,796

Average Term: 4,2 years

3,383.2 886

481 2.7

671

784

2009

2.9 2010

3T10

Dec/11 set/12 9M09

9M10 R ea l Custo

Dec/12 dez/12

2013 2013
* Principal only

2014 2014

2015 2015 Others 2.0%

2016 2016

After Aps 2017 2017

Net Debt / EBITDA

2010
Custo Nominal 9.84%

2011

COST OF DEBT 2012

11.03% 8.21%

2011

11.08% Custo Real

TJLP 25.1%

5.30%

4.87%

4.25%

2.24%

US$/Euro 0.8%
CDI/Selic 72.1%
*ConsideringHedge

2009 2007

2009

2010 2008

2010

2011 2011 2009

Real Cost Custo Real
2010 2011

2012 2012 set/10

Nominal Cost Custo Nominal

2009

2012

38

Investments
Co m b te a Pe r d s a $ 19 s 9 ,8
796.8 102.7 Losses Combat 199.8 694.1
2012 9M11

CAPEX (R$ MN)

CAPEX BREAKDOWN (R$ MN) 2012

Quality Improvement 122.7

928.6

546.7 92.9 453.8

563.8

116.9

181.8 774.8 518.8

446.9

2008 2008 2008

2009 2009 2009

2010 2010 2010

2011 2011 2011

2012

9M12

Investments in Electric Assets (Distribution)

Generation Projects 1.9

Man ute n ge r a o de $ 23 o ,7

Novo sp de g r oje tos e r a $ 1,9 o

Commerc./ Energy Eficiency 26.1

Generation Maintenance 23.7

utr o s 0 6,8

Co m erci /Efic aliza o i Ene r nc ia g ti $ 26 ca ,1

De se nv Siste olv. do m Distr a de ibui $ 21 o 5 ,7

700.6

153.8

Develop. of Distribution System 215.7

Others 206.8

r ia d a ade ,7

39

Why invest in Light?

Economic Transformation in the Concession Area
Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones Market growth New PPAs starting in 2013 and 2014 Revenues increase with no aditional costs. Very active trading subsidiary

Repricing of Existing Energy

Energy Losses Reduction

Progress in the Technology Program New network and meters in the pacified favelas Smart metering development Zero Losses Area Program

Best-in-Class Corporate Governance

Listed in Novo Mercado of Bovespa; Board Committees very active Included in the Sustainability Index (ISE) of Bovespa for the sixth year.

Growth in the Generation Business

Investment in Renova. Belo Monte and Guanhes (total of 477 MW) SHP Lajes under construction. HPP Itaocara

Dividend track Record

Sound Dividend Policy: minimum 50% of net income; Average payout since 2007: 91%

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Regulatory Framework
The Provisional Measure 579 was enacted on September 11, 2012 and thereafter converted into Law 12,783 providing for electric power concessions, reduction of sector charges and reasonable tariffs which although these have not directly affected Light, as its concessions will expire only in 2026, resulted in the following developments: on January 24, 2013, Resolution issued by Aneel approved an average reduction of 19.63% in Light SESAs tariffs. For residential consumers (low voltage), the reduction was 18.10%. The measure will have no impact on the companys result or cash flow since it reflects an equal reduction in costs. on the same date, the distribution of power plants energy quotas was ratified, which had their concession renewed: (i) but lower to the distribution companies contracting needs, thus, causing an involuntary exposure, and only

for Light it accounted for average 156 MW; and

(ii) made distribution companies to start sharing the hydrological risks, which before was only supported by generation companies As of October 2012, an adverse hydrological situation was characterized in Brazils electricity sector, the basis of which is mainly hydric, enforcing the System National Operator to dispatch all the thermal power plants available in the system, thus significantly rising the costs of distribution companies by increasing fuel expenditures in availability agreements, increasing System Service Charges due to energy security and acquisitions on the spot market in order to answer that involuntary exposure.

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Regulatory Framework
On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of non-manageable costs related to thermal plant dispatch, involuntary exposure and hydrological risk not covered by the 2013 tariff, as follows: Eletrobrs will transfer the resources of Energetic Development Accout (CDE) directly to the concessionaires on the same dates and to the same accounts as the respective monthly transfers of the Electricity Trading Chamber (CCEE) financial guarantees. Aneel will publish the monthly dispatches with the amounts to be transferred by Eletrobrs via the CDE (energy development account). System Service Charge (ESS) The monthly transfer will be determined by the difference between the

amounts settled in the CCEE and the tariff coverage defined in the last adjustment.
Involuntary Exposure associated with the quotas The monthly CDE transfer will cover the difference between the difference settlement price (PLD) and the acquisition tariff of the repositioning amount recognized in Lights last tariff adjustment. Hydrological Risk - The net monthly amount settled in the CCEE will be transferred directly via the CDE. The remaining energy purchase and ESS costs not covered by the decree, including fuel costs of availability contracts not included on tariffs, will continue going towards the formation of the regulatory assets and liabilities (CVA) to be determined in Lights November/13 Tariff Revision. The Public Hearing opened for regulating decree proposes a transfer rate until 3% of the balance of CVA, the rest will be payed "in cash" from CDE funds. 42

Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Companys control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Companys strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Companys actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Companys assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Companys businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.

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Contacts
Joo Batista Zolini Carneiro
CFO and IRO

Gustavo Werneck
IR Manager + 55 21 2211 2560 [Link]@[Link]

[Link]/ri

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