corporate presentation light - september 2013

7/27/2019 Corporate Presentation Light - September 2013

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Corporate Presentation

August 2013


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Light Holdings

Light S.A.

(Holding)

100% 51% 20%100% 100% 100%100% 100%51% 25.5%100%

Light Servios

de Eletri cidadeLightger

Itaocara

EnergiaAmaznia

Energia S.A.

Light Esco

Prestao deLightcom

Comercializadora

Light Solues

em Eletricidade Instituto

Axxiom

Solues

CR Zongshen

E-Power

Fabricadora de

Light Energia

. . . . . . . . . Lt a. ecno g cas

S.A.

Veculos S.A.

GuanhesEnergia

S.A.

21.99%

Renova

Energia

S.A.

Central Elica

Fontainha

Ltda.

100%

Central Elica

So Judas

Tadeu Ltda.

100% 9.77%

Norte

Energia

S.A.

33%

EBL Cia de

Eficincia

EnergticaS.A.

. .

Distribution Generation Commercialization and Services Institutional Systems Electric

Vehicles

51%

2


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Light in numbers

Distribution RJ StateConcession

Area%

Population 16 mn 11 mn 68%

Area 44,000 Km 11,000 Km 25%

GDP R$ 407 bn R$ 207 bn 66%

# Consumers 7 mn 4 mn 57%

# Munici alities 92 31 34%

4

56

7

Amaznia Energia

Renova

Guanhes Energia

Generation

Complexo de Lajes

5

HPP Ilha dos Pombos

SHP Paracambi

HPP Santa Branca

1

2

3

1 IBGE (2010)

4

6

7

3


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RankingsAmong the largest players in Brazil

INTEGRATEDNet Revenues 2012 R$ Billion

37,626

24,71422,737

18.5

15.0

11.8

DISTRIBUTIONEnergy Consumption in Concession Area (GWh) - 2012

GENERATION PRIVATE-OWNED COMPANIESInstalled Hydro-generation Capacity (MW) 2012

, 20,054

15,018

.

6.9 6.6

5,560

2,6582,241 2,219

2,012 877

1 Source: Captive market

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

*4


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Shareholders Structure

11 Board members: 8 from the controlling

group, 2 independents e 1 employeesnominated

A qualifying quorum of 7 members to

approve relevant proposals such as: M&A

and dividend policy

CEMIGFIPREDENTOR

75% 25% 6.41%19.23%

BTGPACTUAL

SANTANDER

VOTORANTIM

BANCO DOBRASIL

28.57%

28.57%

5.50%

28.57%

5.50%

14.29%

2.74%

5

CEMIG RME LEPSA BNDESPAR MARKET

PARATI

REDENTORENERGIA

26.06% 13.03% 13.03% 13.46% 34.41%

13.03%100%

96.81% 100%

.

MINORITY

3.19% 0.42%

Free Float47,9%

25.64%*

FOREIGN NATIONAL

57.38% 42.62%

Stake in blue: indirect interest in LightLight S.A.(Holding)

Controller Group52,1%

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


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Corporate GovernanceGeneral Assembly

Fiscal Council

Board of Directors

AuditorsCommittee

Governance andSustainability

Committee

HumanResourcesCommittee

FinancesCommittee

ManagementCommittee

Chief ExecutiveOfficerChief ExecutiveOfficer

Chief HR Officer

Chief BusinessOfficer

CorporateManagement

OfficerChief Legal Officer

Chief Financialand Investor

Relations Officer

Chief DistributionOfficer

Chief EnergyOfficer

Joo B. Zolini Carneiro Ricardo Cesar C. Rocha Evandro L. Vasconcelos Andreia Ribeiro Junqueira

Fernando Antnio F.Reis Paulo Carvalho Filho Evandro L. Vasconcelos*

Paulo Roberto R. Pinto

ChiefCommunications

Officer

Luiz Otavio Ziza Valadares

LGSXYADR-OTC

Interim*

6


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Energy ConsumptionDistribution Quarter

+2.5%

5,7545,7545,7545,7545,6695,6695,6695,6695,4605,4605,4605,4605,8975,8975,8975,897

+2.6%

TOTAL MARKET (GWh)

Industrial5.8%

Free16.0%

Others15.1%

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 plannedmigration to the Basic Network.

7

23.5C23.5C23.5C23.5C 23.2C23.2C23.2C23.2C

2222Q12Q12Q12Q122222Q11Q11Q11Q112222Q10Q10Q10Q10

22.7C22.7C22.7C22.7C22.7C22.7C22.7C22.7C

2Q132Q132Q132Q13

Commercial29.6%

Residential33.4%


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Total MarketELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET QUARTER

+2.5%

+5.1%

+0.1%

5,7545,7545,7545,7545,8975,8975,8975,897

8

RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL

2Q2Q2Q2Q12121212 2Q2Q2Q2Q13131313 2222Q12Q12Q12Q12 2222Q13Q13Q13Q13 2222Q12Q12Q12Q12 2222Q13Q13Q13Q13 2222Q12Q12Q12Q12 2222Q13Q13Q13Q13 2222Q12Q12Q12Q12 2222Q13Q13Q13Q13

FREECAPTIVE

+0.6%

889889889889 893893893893

937937937937

48484848 49494949

942942942942

1,8671,8671,8671,867

182182182182215215215215

1,9621,9621,9621,962

373373373373 342342342342

980980980980

607607607607 678678678678

1.0211.0211.0211.021

1,9691,9691,9691,969 1,9721,9721,9721,972

1,6851,6851,6851,685 1,7481,7481,7481,748

4,9164,9164,9164,9164,9544,9544,9544,954

+4.1%


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Collection rate by segmentQuarter

108.1%108.1%108.1%108.1%

COLLECTION RATE12 MONTHS

COLLECTION RATE BY SEGMENTQUARTER

104.2%104.2%104.2%104.2% 105.0%105.0%105.0%105.0% 107.4%107.4%107.4%107.4% 98.2%98.2%98.2%98.2%99.5%99.5%99.5%99.5%

9

.... ....100.1%100.1%100.1%100.1%

....

2Q2Q2Q2Q12121212 2Q132Q132Q132Q13

JunJunJunJun/12/12/12/12 JunJunJunJun/13/13/13/13TotalTotalTotalTotal RetailRetailRetailRetail Large ClientsLarge ClientsLarge ClientsLarge Clients Public SectorPublic SectorPublic SectorPublic Sector


10/35

Losses12 months

32.932.932.932.9%

Reflects exclusion of long termdelinquent customers from thebilling system, according toResolution 414 by Aneel.

42.2%42.2%42.2%42.2%40.7%40.7%40.7%40.7% 41.2%41.2%41.2%41.2%40.4%40.4%40.4%40.4%

43.1%43.1%43.1%43.1%

45.4%45.4%45.4%45.4% 44.9%44.9%44.9%44.9%

41.8%41.8%41.8%41.8% 41.6%41.6%41.6%41.6% 41.3%41.3%41.3%41.3%

7 6657 6657 6657 6658,0478,0478,0478,0477,8387,8387,8387,838

8,6478,6478,6478,6478,5848,5848,5848,5847,6197,6197,6197,619

8,5828,5828,5828,582

44.2%44.2%44.2%44.2%

Technical lossesTechnical lossesTechnical lossesTechnical losses GWhGWhGWhGWh

% Non% Non% Non% Non----technicaltechnicaltechnicaltechnicallosses/ LV Marketlosses/ LV Marketlosses/ LV Marketlosses/ LV Market % Non% Non% Non% Non----technical losses /technical losses /technical losses /technical losses /LV MarketLV MarketLV MarketLV Market ---- RegulatoryRegulatoryRegulatoryRegulatory

NonNonNonNon----technical lossestechnical lossestechnical lossestechnical losses GWhGWhGWhGWh

Sep/11Sep/11Sep/11Sep/11 Dec/11Dec/11Dec/11Dec/11 Jun/12Jun/12Jun/12Jun/12Mar/12Mar/12Mar/12Mar/12 Sep/12Sep/12Sep/12Sep/12Dec/10Dec/10Dec/10Dec/10 Jun/11Jun/11Jun/11Jun/11Mar/11Mar/11Mar/11Mar/11 Mar MarMarMar/13/13/13/13DecDecDecDec/12/12/12/12

5,3165,3165,3165,316

2,3282,3282,3282,328 2,3492,3492,3492,349

5,2295,2295,2295,229

,,,,,,,,

2,3352,3352,3352,335

5,2475,2475,2475,247 5,6155,6155,6155,615

2,4322,4322,4322,432

5,4575,4575,4575,457

2,3812,3812,3812,381 2,5772,5772,5772,577

6,0076,0076,0076,007

2,6182,6182,6182,618

6,0296,0296,0296,0295,3125,3125,3125,312

2,2312,2312,2312,231

5,2785,2785,2785,278

2,2152,2152,2152,215

5,3265,3265,3265,326

2,2932,2932,2932,293

,,,,,,,,

38% Risky Area

62% Non-RiskyArea

10

JunJunJunJun/13/13/13/13

5,9535,9535,9535,953

2,6292,6292,6292,629


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PARABAPARABA

Non Technical LossesConcession Area Losses Map

LITORNEALITORNEA

WESTWESTEASTEAST

As June / 2013

BAIXADABAIXADA

Grupo Light Valley Litornea East West Baixada

# Clients 4,127,794 423,895 825,271 873,264 967,836 1,037,528

Low Voltage Market (GWh) 13.464 1,135 4,933 2,566 2,525 2,305Non Technical Losses (GWh) 5,953 28 267 1782 1,896 1,979

Non Technical Losses/LV Mkt (%) 44.21% 2.48% 5.42% 69.44% 75.08% 85.87% 11


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New Technology Program

Technology used in regions in which conventional measures are not effective

Areas that present high levels of non-technical losses

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 projectsGrid shielding projectsGrid shielding projectsGrid shielding projects

Control roomControl roomControl roomControl room

Actual gridActual gridActual gridActual grid Shielded gridShielded gridShielded gridShielded grid

3m

9m

Mechanical

MeterDisplay

Centralized

meter

12


13/35

New Technology Program

Meters Installed

(Thousands)

79797979

376376376376

69696969

341341341341

Monitoring, reading, cutting and reconnectionof customers telemetry MCC (Measuring

Center Centralized

Prioritization in areas of high losses andaggressiveness to the network

Technology hindering inappropriate

interference in networks

OUT OF COMMUNITIESCOMMUNITIES

13

297297297297

30303030

Jun/13Jun/13Jun/13Jun/132011201120112011 2012201220122012

197197197197272272272272

20102010201020102009200920092009

7777

122122122122

1151151151152222

80808080

78787878


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Pacified Communities (UPPs)

33 UPPs established

Present in 15 UPPs, 9already concluded

State Government Light

,

40 UPPs until 2014

60,000 consumers

200,000 people achieved

30 UPPs until 2014

Safety, citizenship, and social inclusion

PARTNERSHIP

14


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Focused in areas with 10,000 to 20,000 clients with high level of losses and

delinquency;

Fully-dedicated teams of technicians and commercial agents;

Small areas to cover, enablin hi her roductivit ;

Zero Losses AreaProject: Light Legal (APZ Zero Losses Area)

Constant and accurate results monitoring by Light;

Result-linked remuneration for services provided;

Fixed remuneration above market and aggressive

variable remuneration;

Police Force support, when necessary.

15


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Losses Control InitiativesResults until June/13

CommunitiesZero Losses Area (APZ)

NeighborhoodClient

Numbers

Non-Technical Losses /

Low Voltage Market *

Collection

Rate

Curicica 13.034 11,9% 99,0%

Realengo 10.141 15,8% 98,1%

Cosmos 35.216 20,8% 105,1%

Sepetiba 18.960 31,5% 97,4%

Caxias 1 e 2 13.907 22,9% 93,7%

Before Current Before Current

Santa Marta 2009 95,0% 5,1% 0,2% 98,3%

Cidade de Deus 1 2010 52,1% 14,5% 23,1% 96,2%

Chapu Mangueira 16,2% 101,4%

Babilnia 5,4% 97,1%

Cabritos 1,4% 96,6%

Collection

2010 62,7% 8,6%

2011 62 3% 11 8%

AreasConclusion

Year

Losses

16

Average losses reduction: 26.0 p.p.Average Collection increase: 7,0 p.p.

Average losses reduction : 51.8 p.p.Average Collection increase : 80.4 p.p.

Be or Roxo 1 e 2 20.005 29,1% 94,8%

Vigrio Geral 16.141 15,8% 99,6%Caxias 3 16.768 22,9% 98,7%

Nova Iguau 1 32.423 31,5% 97,9%

Nova Iguau 2 20.500 24,5% 96,2%

Nilpolis 9.923 28,5% 94,1%

Nilpolis Convencional 11.080 14,0% 96,7%

Ricardo de Albuquerque 24.593 18,1% 97,6%

Mesquita 8.759 34,0% 94,8%

Cabritos/Tabajaras/Chapu

Mangueira/Babilnia 5.277 11,6% 96,7%

Coelho da Rocha 17.621 16,8% 91,6%

Batan 7.151 9,5% 103,5%

Total 281.499 22,5% 98,2%

* Reflects the results accumulated until jun/13 s ince the begining of the implementation of each

APZ.

Tabajaras 9,5% 95,1%

Formiga 2011 73,3% 10,8% 31,4% 92,6%Batan 2012 61,8% 8,9% 1,2% 91,0%

Borel 2013 60,5% 26,1% 9,4% 84,3%


17/35

GENERATION

BUSINESS


18/35

Installed Capacity868 MW

Paraiba do Sul River

100%

51%

SHP Paracambi

13 MW

HPP Santa Branca

56 MW

Pombos 187 MW

HPP Fontes Nova

132 MWHPP Underground

Nilo Peanha - 380 MWHPP Pereira Passos

100 MW

SP

RJ

HPP SantaBranca

HPP Ilha dosPombos100%

100%100%100%

LajesComplex

18


19/35

Re-pricing of existing energyConventional Energy BalanceAssured energy (MW average)

122 92

184258 271 276 271 282 282

25 25 25 25 25 25 25 25 25

539 535 535 535 535 535 535 535 535

ContractedContractedContractedContracted EnergyEnergyEnergyEnergy ((((RegulatedRegulatedRegulatedRegulated Contracted Energy (FreeContracted Energy (FreeContracted Energy (FreeContracted Energy (Free HedgeHedgeHedgeHedgeAvailable EnergyAvailable EnergyAvailable EnergyAvailable Energy

Average sale priceto free market(R$/MWh)

143 147 155 164 166 164 167 170 170

Database january. 2013

19

392 418326

252 239 234 239 228 228

2013201320132013 2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020 2021202120212021


20/35

Generation Projects

ProjectProjectProjectProjectInstalledInstalledInstalledInstalled CapacityCapacityCapacityCapacity

(MW(MW(MW(MW

AssuredAssuredAssuredAssured EnergyEnergyEnergyEnergy

((((MWaverageMWaverageMWaverageMWaverage

OperationalOperationalOperationalOperational StartStartStartStart StakeStakeStakeStake

RenovaRenovaRenovaRenova336.2 (in336.2 (in336.2 (in336.2 (in operationoperationoperationoperation

1,113.2 (1,113.2 (1,113.2 (1,113.2 (contractedcontractedcontractedcontracted

171,8 (in171,8 (in171,8 (in171,8 (in operationoperationoperationoperation

574.6 (574.6 (574.6 (574.6 (contractedcontractedcontractedcontracted

2008/20122008/20122008/20122008/2012

2013201320132013----201720172017201721.99%21.99%21.99%21.99%

Belo MonteBelo MonteBelo MonteBelo Monte 11,22311,22311,22311,223 4,5714,5714,5714,571 2015201520152015 2.49%2.49%2.49%2.49%

GuanhesGuanhesGuanhesGuanhes 44444444 25.0325.0325.0325.03 2014201420142014 51%51%51%51%

LajesLajesLajesLajes 17171717 16161616 2015201520152015 51%51%51%51%

20


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Installed Capacity Evolution(in MW)

+ 59.0%

InstalledCapacity

Capacity AfterExpansion

Considering 51% stake

Considering 21.99% stake Considering 2.49% stake

(+) BeloMonte

(+) SHPParacambi

(+) SHPLajes (+) Guanhes(+) Renova

1,4981,4981,4981,498

1313131374*74*74*74* 9999

245245245245

280280280280

855855855855

(+) RenovaCurrentCapacity

* 9 MW SHP + 65 MW Wind Farm (since jul/12)

942942942942

22222222

21


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RESULTS


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Net Revenue

GenerationGenerationGenerationGeneration7.4%7.4%7.4%7.4% DistributionDistributionDistributionDistribution

83.1%**83.1%**83.1%**83.1%**

NET REVENUE BY SEGMENT (2Q13)*

CommercializationCommercializationCommercializationCommercialization9.5%9.5%9.5%9.5%

NET REVENUE (R$MN)

+4.8%

332.8332.8332.8332.8

3,688.83,688.83,688.83,688.83,864.83,864.83,864.83,864.8

Construction RevenueConstruction RevenueConstruction RevenueConstruction Revenue

Revenue w/out construction revenueRevenue w/out construction revenueRevenue w/out construction revenueRevenue w/out construction revenue

23

IndustrialIndustrialIndustrialIndustrial5.55.55.55.5%%%%

* Eliminations not considered

** Construction revenue not considered

NET REVENUE FROM DISTRIBUTION (2Q13)

CommercialCommercialCommercialCommercial30.030.030.030.0%%%%

OthersOthersOthersOthers ((((CaptiveCaptiveCaptiveCaptive12.7%12.7%12.7%12.7%

Network Use (TUSDNetwork Use (TUSDNetwork Use (TUSDNetwork Use (TUSD((((FreeFreeFreeFree ++++ ConcessionairesConcessionairesConcessionairesConcessionaires

9.7%9.7%9.7%9.7%

ResidentialResidentialResidentialResidential

42.142.142.142.1%%%%2Q132Q132Q132Q132Q2Q2Q2Q12121212

+3.2%

1111.846.5.846.5.846.5.846.51,790.11,790.11,790.11,790.1

162.2162.2162.2162.2

1,670.91,670.91,670.91,670.91,627.91,627.91,627.91,627.9

175.6175.6175.6175.63,389.13,389.13,389.13,389.1

3,532.03,532.03,532.03,532.0

299.7299.7299.7299.7

+2.6%

+4.2%

1H131H131H131H131H1H1H1H12121212


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Operating Costs and Expenses

NonNonNonNon manageablemanageablemanageablemanageable((((distributiondistributiondistributiondistribution:::: RRRR$$$$ 1,036.61,036.61,036.61,036.6(64(64(64(64.7.7.7.7%%%%

DISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*

2Q13

322.6322.6322.6322.6358.4358.4358.4358.4

+11.1%

655.7655.7655.7655.7 675.5675.5675.5675.5

+3.0%

ManageableManageableManageableManageable((((distributiondistributiondistributiondistribution:::: RRRR$$$$ 358.358.358.358.4444((((22222222.4%.4%.4%.4%

GenerationGenerationGenerationGeneration andandandandCommercializationCommercializationCommercializationCommercialization:::: RRRR$$$$ 207.9207.9207.9207.9(13.0%(13.0%(13.0%(13.0%

* Eliminations not considered

** Construction revenue not consideredR$ MN 2Q12 2Q13 Var. 1H12 1H13 Var.

PMSO 169.9 202.3 19.0% 337.6 386.3 14.4%

Provisions 84.0 66.6 -20.7% 170.5 111.8 -34.4%

PCLD 72.2 48.4 -33.0% 133.8 77.4 -42.1%

Contingencies 11.8 18.2 54.2% 36.7 34.4 -6.3%

Depreciation 67.9 83.8 23.6% 143.6 164.5 14.6%

Other operational/

revenues expenses 0.8 5.7 567.2% 4.1 12.9 219.2%

Total 322.6 358.4 11.1% 655.7 675.5 3.0%

2Q2Q2Q2Q131313132Q2Q2Q2Q12121212 1H1H1H1H131313131H1H1H1H12121212


25/35

EBITDA

CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*

2Q13

DistributionDistributionDistributionDistribution 62.6%62.6%62.6%62.6%

633.1633.1633.1633.1688.5688.5688.5688.5

----8888.0.0.0.0%%%%

GenerationGenerationGenerationGeneration 35.935.935.935.9%%%%(EBITDA Margin: 75.9%

CommercializationCommercializationCommercializationCommercialization 1.51.51.51.5%%%%(EBITDA Margin: 2.5%

(EBITDA Margin: 11.7%

*Eliminations not considered

277.9277.9277.9277.9255.1255.1255.1255.1

+8.9%+8.9%+8.9%+8.9%

2Q122Q122Q122Q12 2Q132Q132Q132Q13 1H121H121H121H12 1H131H131H131H13


26/35

EBITDA

EBITDA 2Q12 / 2Q13(R$ MN)

+ 20.1%+ 20.1%+ 20.1%+ 20.1%

+8.9%+8.9%+8.9%+8.9%

EBITDAEBITDAEBITDAEBITDA2Q122Q122Q122Q12

EBITDAEBITDAEBITDAEBITDA2Q132Q132Q132Q13

NetNetNetNetRevenueRevenueRevenueRevenue

NonNonNonNon----ManageableManageableManageableManageable

CostsCostsCostsCosts

ManageableManageableManageableManageableCostsCostsCostsCosts (PMSO(PMSO(PMSO(PMSO

ProvisionsProvisionsProvisionsProvisionsRegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

RegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

AdjustedAdjustedAdjustedAdjustedEBITDAEBITDAEBITDAEBITDA

2222Q12Q12Q12Q12

AdjustedAdjustedAdjustedAdjustedEBITDAEBITDAEBITDAEBITDA

2222Q13Q13Q13Q13

OtherOtherOtherOtheroperationaloperationaloperationaloperational////

revenuesrevenuesrevenuesrevenues

EquityEquityEquityEquityPickPickPickPick----upupupup

76767676

331331331331

255255255255

434343431111 (33(33(33(33

(6(6(6(60.20.20.20.2

119119119119

39739739739717171717

278278278278


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Net Income

ADJUSTED NET INCOME2Q12 / 2Q13 (R$ MN)

+ 46.2%

+ 52.5%

2222Q12Q12Q12Q12 2Q132Q132Q132Q13EBITDAEBITDAEBITDAEBITDA FinancialFinancialFinancialFinancialResultResultResultResult

TaxesTaxesTaxesTaxes OthersOthersOthersOthersRegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

RegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

Adjusted NetAdjusted NetAdjusted NetAdjusted NetIncomeIncomeIncomeIncome2222Q12Q12Q12Q12

Adjusted NetAdjusted NetAdjusted NetAdjusted NetIncomeIncomeIncomeIncome2222Q13Q13Q13Q13

9090909050505050

40404040

23232323

26262626(14(14(14(14

(16(16(16(16

58585858

79797979

137137137137


28/35

Dividends

100% 100%

76.3%81.0%

100.0%

86.5%

4.2%

8.2%9.9%

1.7%

8.1% 8.1%6.1%

3.4% 3.3% 5.4% 2.4%

257

351363

432408

351

2007 2008 2009 2010 2011 2012

50%

Minimum Dividend PolicyPayout

1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12 1S13

203

351 408

187

432

363 351

118182 170

92

87

87

Dividend Yeld*Dividends

*Based on the closing pr ice the day before the announcement.

Interest on Equity

182205

187

92

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

*

28


29/35

Indebtedness

Average Term: 4.2 years

AMORTIZATION SCHEDULE* (R$ MN)NET DEBTWithout Pension Fund

4,031.44,031.44,031.44,031.4 4,056.14,056.14,056.14,056.1

2.732.732.732.732.622.622.622.62

266266266266

663663663663772772772772

1,0071,0071,0071,007799799799799

665665665665

437437437437 442442442442 442442442442

192192192192347347347347

2013201320132013 2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020 2021202120212021 2022202220222022 AfterAfterAfterAfter

2022202220222022

NominalNominalNominalNominal CostCostCostCost RealRealRealReal CostCostCostCost*ConsideringHedge

* Principal only

COST OF DEBT

201220122012201220112011201120112010201020102010 Jun/13Jun/13Jun/13Jun/13

NetNetNetNet DebtDebtDebtDebt / EBITDA/ EBITDA/ EBITDA/ EBITDA

Jun/13Jun/13Jun/13Jun/13Mar/13Mar/13Mar/13Mar/13

2.24%2.24%2.24%2.24%

8.21%8.21%8.21%8.21%

4.874.874.874.87%%%%

11.0811.0811.0811.08%%%%

4.25%4.25%4.25%4.25%

11.03%11.03%11.03%11.03%

8.84%8.84%8.84%8.84%

2.402.402.402.40%%%%

1 Reclassified to reflect the deconsolidation results of jointly controlled companies.

TJLPTJLPTJLPTJLP15.615.615.615.6%%%%

CDICDICDICDI72.4%72.4%72.4%72.4%

IPCAIPCAIPCAIPCA10.1%10.1%10.1%10.1%

OthersOthersOthersOthers1.5%1.5%1.5%1.5%

U$/EuroU$/EuroU$/EuroU$/Euro0.5%0.5%0.5%0.5%


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Investments

CAPEXCAPEXCAPEXCAPEX (R(R(R(R$ MN$ MN$ MN$ MN CAPEX BREAKDOWNCAPEX BREAKDOWNCAPEX BREAKDOWNCAPEX BREAKDOWN(R(R(R(R$ MN$ MN$ MN$ MN

1H131H131H131H13

OthersOthersOthersOthers5.25.25.25.2

928928928928.6.6.6.6

30

GenerationGenerationGenerationGeneration7.17.17.17.1

AdministrationAdministrationAdministrationAdministration11113.73.73.73.7

Develop. ofDevelop. ofDevelop. ofDevelop. ofDistributionDistributionDistributionDistribution

SystemSystemSystemSystem175.0175.0175.0175.0

LossesLossesLossesLossesCombatCombatCombatCombat

92.692.692.692.6

CommercCommercCommercCommerc././././EnergyEnergyEnergyEnergy EficiencyEficiencyEficiencyEficiency

33.133.133.133.1

Investments in Electric Assets (DistributionInvestments in Electric Assets (DistributionInvestments in Electric Assets (DistributionInvestments in Electric Assets (Distribution

20102010201020102009200920092009

563.8563.8563.8563.8

700.6700.6700.6700.6

2011201120112011 2012201220122012

....

694.1694.1694.1694.1

102.7102.7102.7102.7

446.9446.9446.9446.9

116.9116.9116.9116.9

518.8518.8518.8518.8

181.8181.8181.8181.8

774.8774.8774.8774.8

153.8153.8153.8153.8

1H131H131H131H131H1H1H1H12121212

302.3302.3302.3302.3 272.8272.8272.8272.8

26.026.026.026.0 53.953.953.953.9

328.4328.4328.4328.4 326.7326.7326.7326.7

----0.5%0.5%0.5%0.5%


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R$ 2.7 billion (nominal terms) invested duringthe current cycle (2008-2013)

Aiming the flexibility of the regulatory target,based on Aneels excepcionality criteria:

Non-Technical LossesRemuneration Asset Base

2013 Tariff ReviewCritical Issues

Capitalization improvement driven by

simulations

Physical-accounting assets concilliation

Constant interactions with Aneel staff,including site visits

Intensive training of teams for correctaccounting records

Accounting system blocked against inputerrors

large gap between actual and regulatory

level of losses;

social and economic conditions hindered theachievement of the target; and

there are no comparable peer companieswith lower level of losses.

31


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Tariff ReviewPreliminary proposal - Main issues:

1111 RemunerationRemunerationRemunerationRemuneration AssetAssetAssetAsset BaseBaseBaseBase:

Gross Remuneration Asset Base: R$ 11,451,023,315

Net Remuneration Asset Base : R$ 6,398,174,913

2222 RegulatoryRegulatoryRegulatoryRegulatory NonNonNonNon----TechnicalTechnicalTechnicalTechnical LossesLossesLossesLosses:

Starting point: 31.82%

Reduction trend: 1.195 p.p.

Work Group comprised of the Aneels technician within thirty days as from August 7, 2013

Next steps:

Date Event

September 16 Public Hearing meeting

October 03Aneel forwards new proposal consolidated to the concessionary and to the consumersrepresentatives (estimate

October 29 Aneel Board Meeting (estimate

November 07 Periodic Tariff Review Date


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Why invest in Light?

Major upcoming events Integration of favelas

Pro-business environment New plants investments Expansion of the existing ones Market growth

Economic

Transformation inthe Concession

Area

New PPAs starting in 2013 and2014

Revenues increase with noaditional costs.Very active trading subsidiary

Repricing ofExisting Energy

Progress in the TechnologyProgramNew network and meters in the

pacified favelasSmart metering developmentZero Losses Area Program

EnergyLosses Reduction

Investment in Renova, BeloMonte and Guanhes (total of547 MW)

SHP Lajes under construction.

Growth in theGenerationBusiness

Listed in Novo Mercado ofBovespa;Board Committees very active Included in the Sustainability

Index (ISE) of Bovespa for thesixth year.

Best-in-ClassCorporate

Governance

Sound Dividend Policy: minimum50% of net income;

Average payout since 2007: 91%

Dividend trackRecord

33


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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.

34


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Contacts

Joo Batista Zolini CarneiroCFO and IRO

Luiz Felipe Negreiros de SSuperintendent of Finance and Investor Relations

+

[email protected]

Gustavo WerneckIR Manager

+ 55 21 2211 2560

[email protected]

35

http://ri.light.com.br/www.facebook.com/lightri

twitter.com/LightRI

corporate presentation light - september 2013

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