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Rio de Janeiro, November 09, 2012 BM&FBOVESPA: LIGT3 OTC: LGSXY Total shares: 203,934,060 shares Free Float:

97,629,463 shares (47.87%) Market value (11/08/12): R$ 4,497 million IR Contacts Joo Batista Zolini Carneiro Financial Officer and Investor Relations Gustavo Werneck IR Manager Phone: +55 (21) 22112682 Fax: +55 (21) 2211-2787 www.light.com.br Email: ri@light.com.br Teleconference: Date: 11/12/2012 Time: 4 p.m. (Brazil) 3 p.m. (US ET) Telephones: Brazil: +55 (11) 4688-6361 USA: +1 (888) 700 0802 Other countries: +1 (786) 924 6977 Simultaneous translation into English: Webcast: www.light.com.br

Consumption grows by 3.5% and net income reached R $ 84 million in the quarter Total energy consumption in the 3Q12 was 3.5% higher than the same quarter in the previous year, plus 5,486 GWh, influenced by the commercial segment increased consumption, with a 13.3% increase. Consolidated Net Revenue for the quarter, not considering the construction revenue, totaled R$ 1,577.7 million, 10.6% above the revenue recorded in the 3Q11. All of the Company's business segments presented increased revenue, with highlights to the service and commercialization activity, which recorded a 103.4% increase;1 Consolidated EBITDA for the quarter was R$ 269.5 million, 12.4% higher than the one recorded in the 3Q11, influenced by the good performance of the generation segment. The EBITDA margin for the quarter was 17.1% compared with the 16.8% in the 3Q11. Net profit for the quarter was R$ 84.1 million, In contrast to a loss of R $ 1.6 million in 3Q11; Collection rate over the last 12 months totaled 98.3% of the income, 1.1 p.p. above the figure recorded in September 2011. Non-technical losses over the last 12 months totaled 43.1%, calculated on the low voltage invoiced market (Aneel criterion), representing a 0.9 p.p. increase compared with June 2012, impacted by the change to the criterion for treating long-term defaulting clients; The Company ended the month of September with net debt in the amount of R$ 3,621.6 million, a 3.0% increase compared with June 2012. The Net Debt/EBITDA leverage index was 2.8x.
Operational Highlights (GWh) Grid Load* Billed Energy - Captive Market 1 Consumption in the concession area 1 Transported Energy - TUSD Sold Energy - Generation Commercializated Energy (Esc o) Financial Highlights (R$ MN) Net Revenue** EBITDA EBITDA Margin** Net Inc ome Net Debt***
* Captive market + losses + network use ** Does not consider construction revenue *** Financial Debt - Cash

3Q12 8,501 4,645 5,486 840 1,282 518 1,578 269 17.1% 112 3,631

3Q11 Var. % 8,077 5.3% 4,559 1.9% 5,299 3.5% 1,151 -27.0% 1,306 -1.8% 423 22.4% 1,426 -100.0% 240 12.4% 16.8% -2 3,144 15.5%

9M12 26,784 14,940 17,419 2,479 4,099 1,305 4,980 959 19.3% 292 3,631

9M11 Var. % 26,267 2.0% 14,972 -0.2% 17,259 0.9% 3,530 -29.8% 4,135 -0.9% 1,186 10.0% 4,573 -100.0% 916 4.8% 20.0% 210 39.1% 3,144 15.5%

(Portuguese and English)

With the purpose of preserving the comparability with the market ratified by Aneel in the Rate Review process, the energy invoiced to free client CSN was not taken into consideration, given the then planned exit of this client to the Basic Grid. CSN's energy consumption amounted to 414 GWh in the 3Q12 and 383 GWh in the 3Q11.

Table of Contents Operating Performance................................................................................... 4 Distribution ................................................................................................. 4 Energy Balance ...................................................................................... 7 Electric Energy Loss ................................................................................ 8 Communities .......................................................................................... 9 Collection .............................................................................................10 Operating Quality ..................................................................................11 Generation.................................................................................................12 Commercialization and Services ...................................................................12 Financial Performance ...................................................................................13 Net Revenue ..............................................................................................13 Consolidated ........................................................................................13 Distribution ..........................................................................................14 Generation ...........................................................................................14 Commercialization and Services ..............................................................14 Costs and Expenses ....................................................................................15 Consolidated ........................................................................................15 Distribution ..........................................................................................15 Generation ...........................................................................................18 Commercialization and Services ..............................................................18 EBITDA .....................................................................................................19 Consolidated .........................................................................................19 Distribution ...........................................................................................20 Generation ............................................................................................20 Commercialization and Services...............................................................21 Consolidated Financial Result .......................................................................22 Indebtedness .............................................................................................23 Net income ................................................................................................25 CAPEX .......................................................................................................26 Generation Expansion Projects .................................................................26 Cash Flow ..................................................................................................29 Corporate Governance ..................................................................................30 Capital Market ..............................................................................................31 Dividends ..................................................................................................33 Recent Events ..............................................................................................34

Release Segmentation Light S.A. is a holding that controls subsidiaries and affiliated companies mainly participating in three business segments: energy distribution, energy generation, and energy commercialization/services. In order to increase the transparency of its results and provide for an improved analysis by the investors, Light also presents its results in a segmented manner. This is the Company's organizational structure in September 2012:

Light S.A. (Holding)

100% Light Servios de Eletricidade S.A.

100% Light Energia S.A.

51% Lightger S.A.

100% Itaocara Energia Ltda.

25.5% Amaznia Energia S.A.

100% Light Esco Prestao de Servios S.A.

100% Lightcom
Comercializadora de Energia S.A.

100% Light Solues em Eletricidade Ltda.

100% Instituto Light

51% Axxiom Solues Tecnolgicas S.A.

20% CR Zongshen E-Power Fabricadora de Veculos Ltda.

Renova Energia S.A. 22.03%

Central Elica Fontainha Ltda. 100%

Central Elica So Judas TadeuLtda. 100%

Norte Energia S.A. 9.77%

EBL Cia. de Eficincia Energtica S.A 33%

Guanhes Energia S.A. 51%

Distribution

Generation

Commercialization and Service

Institutional

System

Electric Vehicles

Operating Performance
Distribution

TOTAL ENERGY CONSUMPTION (GWh) (CAPTIVE + FREE) - QUARTER


3.5%

5,299 -4.3% 13.3% 740

5,486 840

1,882

1,801

1,807 1.7% 984 614 370 1,440 1,627 1,595 155 180 854 45 810

4.6%

968 541 427

894 47 847

4,559

4,645

3Q11

3Q12

3Q11

3Q12

3Q11

3Q12

3Q11

3Q12 Others

3Q11

3Q12 Total

Residential

Industrial

Com m ercial

Captive

Free

Total energy consumption in Light SESAs concession area (captive clients + free client transportation2) in the 3Q12 was 5,486 GWh, which represents a 3.5% increase in relation to the same period in 2011, mainly influenced by the increased consumption recorded in the commercial segment. Given the energy consumed by free client CNS, the total consumption in the 3Q12 was 5,900 GWh compared with the 5,683 GWh recorded in the 3Q11. As for the residential segment, the consumption totaled 1,801 GWh in this quarter, accounting for 32.8% of the total market consumption, with a 4.3% retraction compared with the 3Q11. Said variation mainly derives from two combined effects: (i) the action for terminating contractual relationships with long-term defaulting clients and (ii) the reclassification of condominium installation as clients of the residential segment to the commercial class, by virtue of Aneel's resolution. Without taking these impacts into consideration, the residential class consumption retraction would be 0.1%. The number of residential clients decreased by 3.7%, totaling 3,665 thousand invoiced clients in September 2012, with an average monthly consumption of 163.3 kWh in the 3Q12, compared with 165.0 kWh in the 3Q11.

With the purpose of preserving the comparability with the market ratified by Aneel in the Rate Review process, the energy invoiced to free client CSN was not taken into consideration, given the then planned exit of this client to the Basic Grid. CSN's energy consumption amounted to 414 GWh in the 3Q12 and 383 GWh in the 3Q11.

The industrial client total consumption was 984 GWh, with a 17.9% participation in the total market, recording a 1.7% increase in relation to the third quarter of 2011. Twelve installations from the captive market have been migrated to the free market in this segment, which accounted for a 73 GWh consumption in this quarter. The commercial segment, which represented a 32.9% participation in the total consumption, consumed 1,807 GWh in this quarter, recording a 13.3% increase in relation to the same period in 2011. Without taking the condominium installation reclassification into consideration, the consumption increase for this segment would be 8.3%. In the 3Q12, the free market was increased by 23 installations that consumed as captive clients in the 3Q11. Such migrations corresponded to a 13 GWh increase in the free market for the quarter. In relation to the other classes, which represented 16.3% of the total market, there has been a 4.6% consumption increase compared with the third quarter of 2011. The rural, public power and public utility classes, with total market representativeness corresponding to 0.2%, 6.5% and 5.9%, respectively, recorded a 0.6% decrease, a 7.3% increase, and a 1.7% increase, respectively, in relation to the 3Q11. As provided by Aneel's Resolution 414, Light has changed the criterion through which the defaulting clients will be treated, with the action of terminating contractual relationships with long-term defaulting clients. By September, 170 thousand clients located in areas where traditional collection actions are not effective had been suspended. Such measure resulted in a reduction to the invoiced consumption in the approximate amount of 60 GWh for the 3Q12, which is also reflected in the energy loss indicator, in

TOTAL ENERGY CONSUMPTION (GWh) (CAPTIVE + FREE) - 9 MONTHS

0.9%

17,259 2,287

17,419 2,479

-4.6% 6,412

7.6%

6,117 5,216

-0.2%

492

5,611 551

2.4%

14,972

14,940

2,934 1,655 1,279

2,928 1,784 1,144 4,724 5,061

2,697 140 2,558

2,762 144 2,618

9M11

9M12

9M11

9M12

9M11

9M12

9M11

9M12

9M11 Total

9M12

Residential

Industrial

Commercial

Others

Captive

Free

spite of not causing an adverse impact in the cash generation. Considering the consumption that has not been invoiced given the criterion change, the total energy consumption increase in the concession area would be 4.7% compared with the third quarter of 2011. Total energy consumption in Light SESA concession area (captive clients + free client transportation3) in the 9M12 was 17,419 GWh, which represents a 0.9% increase in relation to the same period in 2011. Said result has also been influenced by the suspension of long-term defaulting clients, with a 163 GWh decrease impact on the invoiced consumption for the 9M12. Without the effect of this suspension, the consumption would record a 1.9% increase between the periods. Given the energy consumed by free clients CNS and CSA (the latter, only for the 1Q11), the total consumption in the 9M12 was 18,587 GWh compared with the 18,611 GWh recorded in the 9M11. The residential segment, with a 6,117 GWh increase over the last nine months, presented a 4.6% retraction compared with the same period of the previous year. Such performance is mainly a result of the impact of the actions for contractual termination of long-term defaulting clients, and reclassification of property condominiums to the commercial class. Without such actions, the residential consumption would present a 1.3% retraction. The average monthly consumption decreased from 188.5 kWh in the 9M11 to 180.4 kWh for the same period in 2012. In the 9M12, industrial clients' total consumption was 2,928 GWh, presenting a 0.2% decrease in relation to the same period in 2011. Between both periods, 11 clients have been migrated to the free market. These clients totaled a 125 GWh consumption in the 9M12. On the other hand, a client with an average monthly consumption of 1.5 GWH migrated from the free market to the captive market in June this year. The commercial class clients consumed 5,611 GWh, which represents 32.2% of the market total consumption, with highlights to the activities of retail, services for buildings, and human care activities, with increase of 3.4%, 33.3% and 4.3%, and respective participation of 22.7%, 12.5% and 4.2%.

3 By reason of preserving the comparability with the market ratified by Aneel in the Rate Review process, the energy invoiced to the following free clients was not considered: CSN and CSA, given the then considered exit of these clients to the Basic Grid. The energy consumption of these clients totaled 1,168 GWh in the 9M12 (CSN only) and 1,352 GWH in the 9M11 (CSN + CSA)

Energy Balance

DISTRIBUTION ENERGETIC BALANCE - GWh Position: January - September 2012

PROINFA 390.3 CCEAR Light Energia 216.5 ITAIPU (CCEE) 4,010.5 AUCTIONS (CCEE) 11,996.0 NORTE FLU (CCEE) 4,768.3 OTHERS(*) (CCEE) 62.5 Basic netw. losses Adjustment 412.6 13.9 Billed Energy 14,940.4

Residential 6,117.5 Industrial 1,144.2 Commercial 5,060.6 Losses + Non Billed Energy 6,077.2 Others 2,618.2

Own load Light 21,017.6 Required E. (CCEE) 21,444.1

(*) Others = Purchase in Spot - Sale in Spot. Note: 1) At Light S.A., there is intercompany power purchase/sale elimination

2) Power purchase data as of 10/08/2012 (subject to change)

Energy Balance (GWh) = Grid Load - Energy transported to utilities - Energy transported to free customers* = Own Load - Captive market consumption Low Voltage Market Medium Voltage Market - Losses + Non Billed Energy
*Including CSN (in 1Q11) and CSA

3Q12 8,501 741 1,285 6,475 4,645 3,032 1,613 1,830

3Q11 8,077 754 1,151 6,172 4,559 2,942 1,617 1,613

Var.% 5.3% -1.7% 11.6% 4.9% 1.9% 3.1% -0.2% 13.5%

9M12 26,784 2,054 3,712 21,018 14,940 9,856 5,085 6,077

9M11 26,267 2,234 3,530 20,503 14,972 9,838 5,134 5,531

Var.% 2.0% -8.0% 5.1% 2.5% -0.2% 0.2% -1.0% 9.9%

Electric Energy Loss Light SESA's total losses amounted to 8,047 GWh, or 22.7% on the grid load over the 12 months ended September 2012, representing a 1.2 p.p. and a 0.4 p.p. increase in relation to the indexes recorded in
7,627 21.5%

Light Losses Evolution 12 months


7,838 22.3% 15.6% 8,047 22.7%

7,582 21.7%

7,665 22.0%

September 2011 and June 2012, respectively. On the same period the non-technical losses totaled 5,615 GWh, which corresponds to 43.1% calculated on the energy invoiced in the low voltage market (Aneel criterion), or 15.8% on the grid load, presenting a 0.9 p.p. increase in relation to the losses recorded in June 2012. The non-technical loss index increase on the low voltage market reflects the action initiated early this year regarding the termination of contracts with long-term defaulting clients, located in areas where traditional collection actions are not effective, according to Aneel's Resolution 414, without affecting, however, the cash generation. In the scope of the new technology program for loss reduction, the installation rhythm increased this year, reaching a total of 283 thousand installed electronic meters and 270 thousand clients with shielded grid in 2012. According to the plan for 2012, the year will end with a total of 318 thousand installed electronic meters.

15.0%

15.0%

15.3%

15.8%

Sep-11
Losses (GWh)

Dec-11

Mar-12

Jun-12

Sep-12

Losses / Grid Load %

Non-Technical Losses % Grid Lo

Non tecnical losses / Low Voltage market 12 months


5,615 43.1% 42.2% 41.2% 40.7% 40.4%

5,299

5,247

5,316

5,457

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Losses (GWh)

Non-Technical Losses % Low Voltage Mkt

Electronic Meters Installed (thousand units)

283

180

57.2%

Sep-11

Sep-12

With regard to the conventional processes of energy recovery, such as the debit negotiation for proved fraudulent clients, the processes have resulted in the amount of 92.8 GWh of energy recovered in the first nine months of 2012, 31.0% below the amount recovered in the same period in the previous year. The fraud
Recovered Energy (GW)
134.3

-31.0%

92.8

regularizations totaled 38,372 normalized clients for the year, an amount that is 31.7% smaller than the amount for the same period in the previous year. In spite of the decrease in the energy recovery and client normalization indexes, the new strategy adopted for inspections has
9M11 9M12

increased the incorporation of energy to 90.3 GWh, which represents a 20.2% increase, reflecting the improved efficiency of normalizations and inspections.

Energy Incorporation (GW)


90.3 75.1

Normalized Costumers

56,204

20.2%

-31.7%
38,372

9M11

9M12

9M11

9M12

Light has been investing in a new approach for fighting losses and defaults - [rea de Perda Zero APZ] - which consists in forming small areas containing 10 to 20 thousand clients; the operations in each area will be performed by a contracted company exclusively focused in the improvement of loss and default indicators. By the end of 2012, 12 APZs will have been installed, and this number will amount to 30 in 2013, covering a total of approximately 400 thousand clients. This project is going to be commercially called Light Legal. Communities The quality improvement and loss reduction program in the communities continues to be one of the Company's focuses, and it has been achieving good results. Since the beginning of the program, the Company has achieved the mark of 64,719 clients who are being serviced with the new grid and

meters.In 2012, until september, 11,088refrigerators and 244,484 lamps were changed by the energy efficiency program. With regard to the power grid, 310 kilometers of grid were replaced by a more robust and shielded grid, thus avoiding theft and power outage. The Company already operates across fourteen communities, four of which have been initiated this year.

Collection In the third quarter of 2012, the collection rate reached 97.8% of the total amount invoiced, 0.1 p.p. above the index recorded in the same period of 2011. Regarding the collection rate over the last 12 months, it represented 98.3% of the income, 1.1 p.p. above the level recorded in September 2011, and 0.1 p.p. above the level recorded in June 2012. The retail segment showed a 3.3 p.p. growth compared with the same period last year. The large client segment decreased 2.5 p.p. compared with the 3Q11, impacted by the billing schedule, with a large concentration of bills having their due dates scheduled for the last business day of the month. As for the Public Power, the collection rate also went down by 6.4 p.p. as a result of a defaulting client that has already
Collection Rate per Segment Quarter
106.2% 102.2% 93.0% 96.3% 99.7% 99.8%

Colletion rate R$ MN Billing Collec tion Collec tion Tax

3Q12 2,239 2,191 97.8%

3Q11 2,023 1,977 97.7%

9M12 7,152 7,068 98.8%

9M11 6,731 6,576 97.7%

Collection Rate 12 m onths moving average


98.2% 97.2% 98.3%

Sep-11

Jun-12

Sep-12

renegotiated the debt for the fourth quarter. The maintenance of high collection rates is explained by the continued actions of the default-fighting

program, such as: (i) changed criterion for treating long-term defaulting clients as of March 2012, totaling 170 thousand clients; (ii) collection campaigns; (iii) continued increase in electronic meter installations; and (iv) increased cut and black list volumes by 35.3% and 22.2%, respectively, in the comparison between 3Q12 and 3Q11. The constitution of Provisions for Doubtful Credit (PCLD) in the 3Q12 represented 1.9% of the energy income gross revenue, totaling R$ 39.3 million. Year to
3Q10 3Q11 3Q12
3.8% 3.9%
Retail Large Customers
3Q11 3Q12

Public Sector

PDD/Gross Revenue (Billed Sales)

1.9%

date, the PCLD decreased from 3.5%, obtained over the last two years, to 2.6% of the energy income gross revenue, totaling R$ 173.2 million. This decrease can be explained by the change to the criterion for
Provisions for Past Due Accounts R$ Million 3Q12 PDD 39.3 3Q11 Var. R$ 9M12 9M11 Var. R$ 72.2 (32.8) 173.2 216.0 (42.9)

treating long-term defaulting clients as of March 2012 and by the default-fighting actions throughout 2012.

10

Operating Quality Light is committed to keeping the provision of electric energy with high quality standards. This year, R$ 171.6 million were invested with the purpose of improving the electric energy provision quality, as well as increasing the Company's grid capacity. In addition to contributing to the relationship between the distributer and its clients, the quality level will have great relevance in the regulatory model, from the rules that have already been approved for the 3rd cycle of rate review. The companies will be encouraged to seek better quality indexes and achieve their recognition by means of the x factor. For the third quarter of 2012, in the overhead distribution grid, 20.7 kilometers of low voltage grid were replaced by bundle assembled aerial cables, and the open grid was replaced by compact grid (spaced cable) across 59.4 kilometers of medium voltage grid. 405 inspections/maintenances in medium voltage circuits were carried out, in addition to the replacement of 787 transformers and the pruning of 26,331 trees. For the underground distribution grid, 6,029 transforming chamber inspections were carried out, as well as 15,815 inspection box assessments, in addition to the maintenance in 73 transformers and 750 protectors. The moving average of the twelve months ended September 2012, related to the interruption equivalent duration (DEC) indicator, expressed in hours, reached the amount of 16.14 hours. The interruption equivalent frequency (FEC) indicator, expressed in times, corresponded to 7.64 times for the same period. These indicators were impacted by the reduction on purges generated in 2011 by the so called "critical days", resulting from the calculation methodology defined by Aneel. In the comparison between indicators, without purge, i.e., what is actually felt by the consumers, the DEC indicator showed a reduction from 18.24 hours to 16.96 hours, and the IEF indicator also showed a reduction, going from 8.39 times to 7.92 times.

ELC / EFC - 12 Months


18.24
ELC 7.21 7.19 7.64 15.77 15.24 16.14

ELC and EFC - Without Purge 12 Months


16.96

8.39

7.92

EFC

set/10*

set/11

set/12

DEC
set/11 set/12

FEC

*The effects of the event in the National Interconnected System of 11/10/09 are not taken into consideration.

11

Generation The energy sold in the Regulated Procurement Environments (ACR) and in the Free Procurement Environments (ACL) in the 3Q12 was 1,004.5 GWh and 216.3 GWh, respectively. In the ACR, the volume of energy sold was 2.9% below the volume recorded in the same period of 2011, as a result of agreement seasonalization and, mainly, as a result of the returns arising from the Surplus and Deficit Compensation Mechanism (MCDS). In the ACL, the 30.3% increase can be explained by the higher volume of energy procured for the year of 2012, contemplating the returns in the ACR and the incentived energy commercialization arising from the SHP Paracambi. Spot market sales decreased by 46.2%, mainly as a result of the hydroelectric generation decrease in the National Interconnected System (SIN) and the Physical Guarantee seasonalization. The month of September 2012 recorded the sale of a total amount of 4,099.0 GWh, which represents a 1.1% decrease in the volume recorded in the same month of 2011, primarily resulting from agreement seasonality.
LIGHT ENERGIA (GWh) Regulated Contracting Environment Sales Free Contracting Environment Sales Spot Sales (CCEE) Total 3Q12 1,004.5 216.3 61.2 1,281.9 3Q11 1,034.1 165.9 113.8 1,313.8 % -2.9% 30.3% -46.2% 9M12 3,033.6 541.9 523.5 9M11 3,103.7 446.8 592.1 4,142.6 % -2.3% 21.3% -11.6% -1.1%

-2.4% 4,099.0

Commercialization and Services In the third quarter of 2012, Light Esco's and LightCom's electric energy direct commercialization, arising from conventional and incentived sources, totaled the amount of 518.3 GWh compared with the 423.4 GWh commercialized in the same period of the previous year, representing a 22.4% increase resulting from the higher number of businesses made during this period.

Volume (GWh) Trading

3Q12 518.3

3Q11 423.4

Var.% 22.4%

9M12 1,304.9

9M11 1,186.1

Var.% 10.0%

12

Throughout 2012, three new projects for reformation and expansion of the cold water system of large shopping malls, including Shopping Nova Amrica, were procured, in addition to the installation of a photovoltaic power station in the roofing of the Maracan Arena. Projects for load increase and construction of substations have also been signed. Currently, seven service provision projects are under execution by Light Esco, among which is the cogeneration project carried out in a soft drink company from Rio de Janeiro, where it will be possible to generate a series of industrial utilities, such as electric energy, cold water, steam, thermal energy, and other industrial gases, by the end of the project.

Financial Performance
Net Revenue Consolidated The Net Operating Revenue for the quarter totaled R$ 1,748.0 million, 5.5% above the revenue recorded in the 3Q11. Without taking into consideration the construction revenue, which has a neutral effect on the result, the consolidated net revenue increased by 10.6%, totaling R$ 1,577.7 million in the 3Q12. All of the Company's operating segments showed increased numbers, with highlights to the service and commercialization activity, whose net revenue recorded a 103.4% increase compared with the 3Q11. In the comparison between the year to date periods, without taking the construction revenue into consideration, the consolidated net revenue totaled R$ 4.980.2 million, 8.9% above the figure recorded in the 9M11.
Net Revenue (R$ MN) Distribution Billed consumption Non billed energy Network use (TUSD) Short-Term (Spot) Others Subtotal (a) Construction Revenue Subtotal (a') Generation Generation Sale (ACR+ACL) Short-Term Others Subtotal (b) Commercialization and Services Energy Sales Services Subtotal (c) Others and Eliminations (d) Total w/out construction revenue (a+b+c+d) Total (a'+b+c+d)
1

3Q12 1,244.6 3.7 142.7 10.5 14.7 1,416.2 170.3 1,586.5

3Q11 1,163.0 16.5 117.9 13.3 12.2 1,322.9 230.6 1,553.5

Var. % 7.0% -77.6% 21.1% -21.5% 20.8% 7.1% -26.1% 2.1%

9M12 4,012.6 6.7 423.6 28.1 56.7 4,527.6 470.0 4,997.6

9M11

Var. %

3,846.6 4.3% (14.7) 373.6 13.4% 26.1 7.7% 22.4 152.6% 4,254.1 6.4% 556.9 -15.6% 4,811.0 3.9%

91.0 4.2 14.7 109.9

79.9 0.2 2.7 82.9

13.9% 1834.8% 436.6% 32.6%

261.9 38.6 23.0 323.5

233.6 5.2 6.4 245.1

12.1% 646.5% 261.3% 32.0%

68.5 17.3 85.8 (34.3) 1,577.7

41.1 1.1 42.2 (21.5) 1,426.5

66.7% 1498.1% 103.4% 59.4% 10.6%

173.8 30.3 204.1 (75.0) 4,980.2

118.2 21.8 140.0 (66.4) 4,572.8

47.1% 38.5% 45.8% 13.0% 8.9%

1,748.0 1,657.1 5.5% 5,450.2 5,129.7 6.2% Balance of the settlement on the CCEE The subsidiary Light SESA counts revenues and costs, with zero margin, related to services of construction or improvement in
infrastructure used in services of electricity distribution.

13

Distribution The Net Revenue for the 3Q12 totaled R$ 1,586.5 million, which represents a 2.1% increase in relation to the same quarter in the previous year. Without taking the
Electric Energy Consumption (GWh) - Captive 3Q12
Others 18% 847 1,627 Com m ercial 35% 1,801 370 Industrial 8% Residential 39%

construction revenue into consideration, the net revenue for the distribution segment was R$ 1,416.2 million in this quarter, 7.1% above the revenue recorded in the 3Q11. The net revenue increase recorded in this quarter is a reflex, mainly, of the combined effect of the 7.82% average increase on the energy rate, as of November 07, 2011, with the 3.5% expansion on the total market. The residential and commercial segments represented 77% of the captive
418 Com m ercial 34%

Net Revenue by Class- Captive R$ MN - 3Q12


Others 15% 182 540 105 Industrial 8% Residential 43%

market revenue. In the 9M12, the distributor's net revenue, without taking the construction revenue into consideration, totaled R$

4,527.6 million, 6.4% above the figure recorded in the same period of 2011, mainly as a result of both the 8.4% growth in the free market consumption and the rate review from November 2011. Generation The Net Revenue for the quarter totaled R$ 109.9 million, which represents a 32.6% increase in relation to 3Q11. Such result can be explained by the average price increase verified in the spot market between the periods (R$ 131.1/MWh in the 3Q12 against R$ 21.3/MWh in the 3Q11) and by the 30.3% increase in the free market energy sale, combined with higher procurement prices in this market. In addition to that, the consolidation of Renova's R$ 12.9 million net revenue, in the label others, also contributed to the revenue growth, given the fact that its first wind farm went live in July this year. In the 9M12, the net revenue corresponded to R$ 323.5 million, 32.0% above 9M11, mainly due to the higher price and volume of the energy agreements negotiated in the ACL, in addition to the increased average price verified in the spot market. Commercialization and Services The Net Revenue for the 3Q12 totaled R$ 85.8 million, 103.4% above the revenue recorded in the 3Q11. Such performance mainly results from the higher energy commercialization price, impacted by the spot market price increase in the quarter and by the service activity, arising from Shopping Nova Amrica's cold water system reformation project, which is under execution stage, with revenue amounting to R$ 7.2 million. In the 9M12, the Net Revenue was 204.1 million, 45.8% higher than the revenue recorded in the same period of the previous year.

14

Costs and Expenses Consolidated Consolidated Operating Costs and Expenses In the third quarter of 2012, operating costs and expenses totaled R$ 1,566.4 million, presenting a 3.6% growth compared with the figure recorded in the same period of the previous year. Without taking the construction cost into consideration, the consolidated costs and expenses for the quarter were 9.0% above the ones recorded in the 3Q11. Such variation was mainly influenced by the costs and expenses from the distribution and commercialization and service segments, primarily impacted by the increase in the costs with energy purchase for resale, both by reason of the higher volume and of the PLD. In the 9M12, the consolidated operating costs and expenses, including the construction costs, totaled R$ 4,281.7 million, 8.8% higher than the figure recorded in the same period last year.
Operating Costs and Expenses* (R$ MM) Distribution Distribution w/out Construction Revenue Generation Commercialization Others and Eliminations Consolidated w/out Construction Revenue Consolidated
*Does not include other operating expenses/incomes

3Q12 (1,473.6) (1,303.3) (48.7) (62.3) 18.1 (1,396.1) (1,566.4)

3Q11 Var. % (1,453.9) 1.4% (1,223.3) 6.5% (36.4) 33.9% (38.8) 60.5% 17.0 6.3% (1,281.4) 9.0% (1,512.0) 3.6%

9M12 (4,504.2) (4,034.2) (129.2) (107.2) (11.2) (4,281.7) (4,751.7)

9M11 Var. % (4,312.3) 4.5% (3,755.4) 7.4% (108.1) 19.5% (128.4) -16.5% 56.6 -119.8% (3,935.2) 8.8% (4,492.1) 5.8%

Distribution In the quarter, the energy distribution activity costs and expenses increased by 1.4% in relation to the 3Q11. Without taking the construction cost into consideration, total costs and expenses presented a 6.5% growth, mainly as a result of the 10.1% increase in the non-manageable costs and expenses, partially offset by the 4.0% reduction in the manageable costs and expenses.
Costs and Expenses (R$ MN) Non-Manageable Costs and Expenses Energy Purchase costs Costs with Charges and Transmission Others (Mandatory Costs) Manageable Costs and Expenses PMSO Personnel Material Outsourced Services Others Provisions Depreciation and Amortization Construction Revenue Total costs w/out Construction Revenue Total Costs 3Q12 (1,003.1) (781.3) (217.6) (4.2) (300.2) (178.5) (69.3) (5.8) (86.3) (17.1) (52.3) (69.3) (170.3) (1,303.3) (1,473.6) 3Q11 Var. % (910.8) 10.1% (701.3) 11.4% (205.1) 6.1% (4.3) -2.3% (312.5) -4.0% (149.0) 19.8% (53.0) 30.8% (6.6) -11.9% (79.9) 7.9% (9.5) 80.6% (83.0) -36.9% (80.6) -14.0% (230.6) -26.1% (1,223.3) 6.5% (1,453.9) 1.4% 9M12 (3,082.4) (2,440.5) (629.4) (12.5) (951.8) (516.0) (195.8) (13.2) (260.6) (46.4) (222.9) (212.9) (470.0) (4,034.2) (4,504.2) 9M11 Var. % (2,781.4) 10.8% (2,190.8) 11.4% (577.5) 9.0% (13.0) -4.1% (974.0) -2.3% (496.9) 3.8% (173.4) 13.0% (18.1) -27.4% (266.4) -2.2% (39.0) 19.1% (242.6) -8.1% (234.5) -9.2% (556.9) -15.6% (3,755.4) 7.4% (4,312.3) 4.5%

15

Non-Manageable Costs and Expenses In the third quarter of 2012, the non-manageable costs and expenses were R$ 1,003.1 million, showing a 10.1% increase in relation to the same period in 2011.
1.7% Purchased Energy - GWh 9 m onths

21,936
3.5% 18.4% 21.7%

21,740
1.7% 18.4% 21.9% 1.8%

The energy purchase costs increased by 11.4% in relation to the 3Q11, mainly as a result of both the PLD increase, which elevated the costs of thermal station availability agreements, and the exchange variation, which affected the costs with the purchase of energy from Itaipu and Norte Fluminense. In addition to that, the fact that the contracted products went on new energy auctions at higher prices, as well as the readjustments to the agreements previously existing in the portfolio, have also contributed to cost increase. A portion of this increase had already been contemplated in the rate review of 2011, and the other part comprises regulatory assets (CVA) to be considered in the next rate review, but which are not recorded in the statement of income, by reason of the International Financial Reporting
1.2%

54.7%

56.2%

9M11
AUCTIONS NORTE FLU ITAIPU

9M12
SPOT PROINFA

Purchased Energy - R$ MN 9 m onths

2,190.8
16.5% 29.6% 52.7% 9M11
AUCTIONS NORTE FLU

2,440.5
17.2% 29.0%

1.5%

52.3%

9M12
ITAIPU SPOT

Standards (IFRS). The third quarter was also impacted by the non-recurring cost in the amount of R$ 14.8 million referring to final decision on the lawsuit under the accountability mechanism of CCEE (Trading Chamber). The costs with charges and transmission showed a 6.1% increase that mainly results from both the increase in the reserve energy charge and the connection and transmission charge annual adjustment, partially offset by the decrease in the System Service Charges (ESS), as a result of the reduced activation of the thermal stations due to operating constraints during this quarter, compared with the same period in 2011. The average cost of the purchased energy, without taking the spot market purchases into consideration, was R$ 116.6/MWh in the 3Q12, compared with a total energy purchase average cost of R$ 104.3/MWh in the 3Q11, which represents a 11.8% increase. Year to date, the non-manageable costs and expenses were R$ 3,082.4 million, showing a 10.8% increase in relation to the same period in 2011. Energy purchase costs went up by 11.4% in relation to 9M11, with impact from the PLD and exchange variation increase, which affected the Itaipu and Norte Fluminense costs. In the comparison between the periods, the costs with charges went up by 9.0%, mainly as a result of the reserve energy charge increase and the connection and transmission charges annual readjustment.

16

Manageable Costs and Expenses In the 3Q12, the manageable operating costs and expenses, represented by personnel, materials, third-party services, provisions, depreciations, and others totaled R$ 300.2 million, showing a 4.0% decrease between the periods. The PMSO (personnel, materials, services, and other) costs and expenses amounted to R$ 178.5 million in the quarter, 19.8% above the third quarter of 2011. There has been a 30.8% increase in the personnel line, which is a result of: (i) increased number of employees, with the continuation of the primarization process; (ii) 6.0% payroll increase, referring to the annual collective bargaining; (iii) procurement of a consulting company with the purpose of transforming the corporate mindset in order to reduce accidents; (iv) increase to the provisioned amount relative to profit sharing; and (v) nonrecurring expenses related to the top management change. The Third-Party Services line went up by 7.9%, mainly due to the increased number of cut-offs, terminations and re-hirings compared with the same period last year. Such variation was also caused by the increase in the non-recurring expenses with the customer service channels. The provisions line showed a 36.9% decrease compared with the 3Q11. The constitution of Provisions for Doubtful Credit (PCLD) in the 3Q12, corresponding to R$ 39.3 million, represented 1.9% of the energy income gross revenue, which showed a 2.0 p.p. decrease when compared to the 3.9% on gross revenue in the 3Q11, which totaled R$ 72.2 million for PCLD. The 14.0% decrease recorded in the depreciation and amortization line can be explained by both the change to the depreciation rates introduced by Aneel's Resolution no. 474/2012, which reduced the average depreciation rate, becoming effective as from January this year, as well as the non-recurring effect in the 3Q11 related to the correction of the difference in the special liabilities accumulated depreciation in the amount of R$ 2.7 million. From January to September, the manageable costs and expenses amounted to R$ 951.8 million, 2.3% below the figure recorded in the same period, 2011. The PMSO costs and expenses totaled R$ 516.0 million over the first nine months of the year, showing a 3.8% increase. In September, the Provision for Doubtful Credit totaled the amount of R$ 173.2 million in the year to date, with a 19.8% decrease compared with the same period of the previous year, which represents 2.6% of the energy income gross revenue, i.e., 0.9 p.p. below the figure recorded in the 9M11.

17

Generation
Operating Costs and Expenses* - R$ MN 3Q12 Personnel (6.4) Material and Outsourc ed Services (5.3) Purchased Energy (CUSD) (10.8) Depreciation (18.1) Others (includes provisions) (8.1) Total (48.7) *Doesn't include another operating costs and expenses. 3Q11 Var. % (5.2) 23.5% (4.9) 7.9% (4.8) 126.6% (14.0) 29.3% (7.5) 7.7% (36.4) 33.9% 9M12 (17.8) (14.7) (24.1) (46.7) (25.9) (129.2) 9M11 Var. % (17.1) 4.2% (12.5) 17.7% (13.2) 82.6% (42.9) 8.9% (22.5) 15.1% (108.1) 19.5%

In this quarter, Light Energia's costs and expenses accounted for R$ 48.7 million, showing a 33.9% increase compared with the 3Q11. Such performance is explained both by the consolidation, effective September 2011, of Renova's costs, which totaled R$ 7.1 million, and by the purchase of the energy generated by SHP Paracambi, corresponding to the amount of R$ 3.8 million. The costs and expenses in the 3Q12 are comprised as follows: Personnel (13.1%), materials and thirdparty services (11.0%), CUSD/CUST/Purchased Energy (22.2%), other and depreciation (53.7%). In this quarter, the PMSO cost per MWh was R$ 14.84/MWh, compared with a R$ 14.50/MWh cost in the 3Q11. Year to date, Light Energy's costs and expenses were R$ 129.2 million, showing a 19.5% increase in relation to the costs and expenses from the same period of 2011. Such performance is fundamentally explained both by the consolidation of Renova's costs, which represented R$ 12.7 million, and by the purchase of the energy generated by SHP Paracambi, corresponding to the amount of R$ 6.7 million.

Commercialization and Services

Operating Costs and Expenses - R$ MN Personnel Material and Outsourced Services Purchased Energy Depreciation Others (includes provisions) Total

3Q12 (1.8) (9.5) (66.7) (0.1) (0.5) (78.7)

3Q11 Var. % (1.1) 58.4% (1.0) 830.3% (35.9) 85.6% (0.2) -13.7% (0.5) -8.4% (38.8) 102.8%

9M12 (4.4) (16.6) (162.4) (0.5) (1.4) (185.2)

9M11 Var. % (3.4) 30.0% (15.1) 9.9% (108.1) 50.2% (0.5) 15.9% (1.3) 4.3% (128.4) 44.3%

In the 3Q12, the costs and expenses totaled R$ 78.7 million, 102.8% above the amount recorded for the same period in 2011. Such increase is primarily explained by the purchased energy cost, which represented an 85.6% increase between the quarters, resulting from the spot market price increase, in addition to the higher volume of energy commercialized. In addition to these costs, the expenses with materials and third-party services also increased as a result of the project for reformation of the Shopping Nova Amrica's cold water system, which is under execution stage, and whose completion is expected for the fourth quarter of 2012.

18

Year to date, the costs and expenses totaled R$ 185.2 million, a 44.3% increase in relation to the same period last year, which was also impacted by the spot market price for the period.

EBITDA Consolidated
EBITDA and Adjusted EBITDA 3Q11/3Q12 - R$ Millions

355

115 240

151 30 (110) (41) 269

119

388

Adjusted Regulatory EBITDA - 3Q11 Assets and Liabilities

Adjusted Net Revenue EBITDA - 3Q11

NonManagable Costs

Managable Costs (PMSO)

Provisions

EBITDA - 3Q12 Regulatory Assets and Liabilities

Adjusted EBITDA - 3Q12

The consolidated EBITDA for the 3Q12 was R$ 269.5 million, 12.4% above the figure recorded for the same period in 2011. Such performance can be mainly explained by the 10.6% increase in the net revenue, without the construction revenue, with growth recorded across all the segments of operation, combined with the purchased energy cost increase, mainly resulting from factors such as the readjustments made to the effective agreements, the exchange variation affecting the costs with purchase of energy from Itaipu, and the PLD increase that impacted the cost with availability of thermal stations. A portion of this increase had already been contemplated in the rate review of 2011, and the other part comprises regulatory assets and liabilities (CVA) to be considered in the next rate review, but which are not recorded in the statement of income. Considering the CVA, the adjusted EBITDA would have been R$ 388.2 million, 9.5% higher than the one recorded in the 3Q11. The EBITDA margin4 in this quarter was 17.1%. The generation and commercialization EBITDA's growth increased the participation of these segments in the consolidated EBITDA to 29.5% and 2.6%, respectively. This way, the distribution segment represented 67.9% of the total.
Commercialization 2.6% *Does not consider eliminations Generation 29.5% Distribution 67.9%

EBITDA per segment* 3Q12

In order to calculate the Distribution and the Consolidated EBITDA margin, the construction revenue was not taken into consideration due to the accounting of revenue and cost, with zero margin.

19

Consolidated EBITDA- R$ MM Distribution Generation Commerc ialization Others and eliminations Total EBITDA Margin (%)

3Q12 182.2 79.3 6.9 1.0 269.5 17.1%

3Q11 Var.% 179.6 1.5% 60.5 31.0% 3.6 95.0% (3.9) -125.5% 239.8 12.4% 16.8% -

9M12 706.4 241.1 18.4 (6.8) 959.1 19.3%

9M11 Var.% 731.4 -3.4% 179.9 34.0% 12.1 51.6% (7.9) -15.0% 915.5 4.8% 20.0% -

Year to date, the EBITDA was R$ 959.1 million, 4.8% above the figure recorded for the same period in 2011, with EBITDA margin of 19.3%. Given the CVA formation, the EBITDA would total R$ 1,153.6 million in the 9M12, 18.9% higher than the one recorded in the same period last year.

Distribution The Distribution EBITDA for the 3Q12 was R$ 182.2 million, 1.5% above the figure recorded for the same period of 2011. The result is explained by the 3.5% increase in the total market consumption, partially offset by the higher cost of purchased energy, impacted by the spot market high price and by the exchange variation between the periods. A portion of the energy purchase cost increase comprises regulatory assets and liabilities (CVA), which are taken into consideration for this year's rate review. Considering this, the Distributor's EBITDA would have been R$ 301.0 million, 2.2% higher than the one recorded in the 3Q11. The EBITDA margin5 in the quarter was 12.9%, 0.7 p.p. below the 3Q11. Year to date, the distributor's EBITDA was R$ 706.4 million, a 3.4% decrease in relation to the same period last year. Such result was also influenced by the increase in the energy purchase cost. Given the regulatory assets and liabilities (CVA), the Distributor's EBITDA would be R$ 900.8 million in the 9M12, 14.5% higher than the one recorded for the same period in the previous year. The EBITDA margin in the period was 15.6%, 1.6 p.p. below the 9M11. Generation Light Energia's EBITDA showed a 31.1% increase compared with the 3Q11, totaling R$ 79.3 million in this quarter. This result mainly arises from a greater energy sale revenue in the short run due to the average price increase verified in the spot market between the periods (R$ 131.1/MWh in the 3Q12 against R$ 21.3/MWh in the 3Q11) offsetting the reduced volume of energy sold to this market, and from the 30.3% increase in the volume of energy sold to the free market, combined with the higher procurement prices in this market. In addition to that, the consolidation of Renova's R$ 9.9 million EBITDA also contributed to the result, encouraged by the fact that its first wind farm went live in July this year. The EBITDA margin in the quarter was 72.1%, 0.9 p.p. above the 3Q11.

In order to calculate the Distribution and the Consolidated EBITDA margin, the construction revenue was not taken into consideration due to the accounting of revenue and cost, with zero margin.

20

Year to date, the EBITDA totaled R$ 241.1 million, 34.0% higher than the amount recorded in the 9M11. The EBITDA margin in this period was 74.5%, 1.1 p.p. above the 9M11.

Commercialization and Services The EBITDA totaled R$ 6.9 million in this quarter, 95.0% above the amount recorded in the 3Q11. Such result is mainly explained by the significant PDL increase, combined with the higher volume of energy commercialized, compared with the amount recorded in the same period of the previous year. The EBITDA margin in the quarter was 8.1%, 0.3 p.p. below the 3Q12. Year to date, the EBITDA totaled R$ 18.4 million, 51.6% higher than the amount recorded in the 9M11. The EBITDA margin in the period was 9.0%, 0.4 p.p. above the 9M11.

21

Consolidated Financial Result


Financial Result - R$ MN Financial Revenues Income from financial investments Monetary and Exchange variation Net Swap Operations Swap Operations Moratory Increase / Debts Penalty Others Financial Revenues Financial Expenses Debt Expenses Monetary and Exchange variation Net Swap Operations Restatement of provision for contingencies Restatement of R&D/PEE/FNDCT Interest and fines on taxes Installment payment - fines and interest rates Law 11.941/09 (REFIS) Present value adjustment DIC/FIC Compensation Other Financial Expenses (Includes IOF) Braslight (private pension fund) Charges Monetary and Exc hange Variation Total 3Q12 32.9 13.1 0.1 3.7 16.7 3.0 (149.5) (89.1) 2.6 (6.0) (5.1) (1.5) (1.1) (3.4) (3.4) (4.7) (12.3) (25.4) (15.6) (9.8) (116.6) 3Q11 37.2 12.2 0.5 4.7 1.1 16.1 3.8 (181.2) (101.1) (8.9) (3.3) (2.5) (4.0) (8.1) (25.0) (4.1) (2.0) (22.2) (15.2) (7.0) (144.0) Var. % -11.6% 7.4% -79.4% 3.9% -21.6% -17.5% -11.8% 54.6% -38.8% -72.2% -57.5% -86.5% 13.8% 509.8% 14.4% 2.9% 39.1% -19.0% 9M12 128.7 36.6 2.3 11.6 25.2 58.9 19.3 (491.8) (269.1) (13.4) (21.0) (5.5) (1.8) (12.0) (32.4) (30.5) (20.6) (85.6) (46.9) (38.7) (363.2) 9M11 (%) 128.4 0.2% 39.2 -6.7% 1.9 20.9% 1.4 714.5% 1.4 1659.0% 71.5 -17.7% 14.3 34.9% (457.8) 7.4% (255.3) 5.4% (5.5) 141.3% (22.3) -5.9% (4.6) 20.6% (15.5) -88.2% (19.1) -37.4% (19.2) 69.0% (20.9) 45.8% 1.0 (96.4) -11.2% (45.4) 3.4% (51.0) -24.1% (329.4) 10.2%

The financial result for the quarter was negative in R$ 116.6 million, 19.0% below the R$ 144.0 million negative financial result recorded in the third quarter of 2011. The financial revenue for the quarter was R$ 32.9 million, which represents a result that is 11.6% smaller than the one verified in the same period of 2011, mainly due to the swap result variation resulting from the dollar's 18.8% appreciation in that quarter. The financial expense for the quarter amounted to R$ 149.5 million, which is a 17.5% decrease in relation to the same period in 2011. Such performance is mainly a result of: (i) adjustment to present value in the amount of R$ 23.4 million related to the advanced payment of a client's debt with Light, in the third quarter of 2011; (ii) decrease in the charges of the debt in R$ 11.9 million resulting from the interest rate reduction and the rollover of debt with high rates for others with lower cost; and (iii) difference in the R$ 11.5 million expense with monetary and exchange variation, primarily impacted by the adjustment to the bond value (guarantee - debt reducer) of the National Treasury Debt, generating a financial expense decrease in the period. Year to date, the financial result was R$ 363.2 million negative, 10.2% above the also negative result recorded for the first nine months of 2011. Such result is mainly caused both by the Company's increased leverage level, which resulted in higher debt charges, and by the PIS/COFINS effect recorded in this quarter, accounted for in the other expenses line, in the amount of R$ 7.5 million, related to the Interest on Own Capital (JCP) deliberation.

22

Indebtedness
R$ MM Brazilian Currency Light SESA Debenture 4th Issue Debenture 5th Issue Debenture 7th Issue Debenture 8th Issue Eletrobrs CCB Bradesco Working Capital - Santander BNDES (CAPEX) BNDES FINEM Others Light Energia Debenture 1st Issue (Light Energia) Debenture 2st Issue (Light Energia) Debenture 3st Issue (Light Energia) BNDES FINEM (CAPEX) Others Renova Energia BNDES FINEM (CAPEX) Banco do Nordeste Light ESCO BNDES - PROESCO Light GER BNDES - Lightger Foreing Currency Light SESA National Treasury Merril Lynch BNP Citibank Gross Debt Cash Net Debt (a) Braslight (b) Adjusted Net Debt (a+b) Short Term 618.5 584.7 0.0 237.6 25.1 2.2 0.6 119.2 18.8 42.2 138.7 0.3 20.5 7.8 4.0 0.1 8.6 46.8 5.6 4.2 1.4 3.5 3.5 4.2 4.2 12.7 12.7 10.1 0.4 1.6 0.5 631.2 % 12.8% 12.1% 0.0% 4.9% 0.5% 0.0% 0.0% 2.5% 0.4% 0.9% 2.9% 0.0% 0.4% 0.2% 0.1% 0.0% 0.2% 1.0% 0.1% 0.1% 0.0% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% 0.2% 0.0% 0.0% 0.0% 13.1% Long Term 3,751.2 2,815.4 0.0 365.4 648.4 470.0 1.0 375.0 199.1 392.5 363.9 664.2 171.2 423.4 30.0 39.6 115.6 200.4 177.8 22.5 10.5 10.5 60.9 60.9 431.4 431.4 35.4 101.5 91.4 203.1 4,182.6 % 77.9% 58.5% 0.0% 7.6% 13.5% 9.8% 0.0% 7.8% 4.1% 8.2% 7.6% 13.8% 3.6% 8.8% 0.6% 0.8% 2.4% 4.2% 3.7% 0.5% 0.2% 0.2% 1.3% 1.3% 0.7% 9.0% 0.7% 2.1% 1.9% 4.2% 86.9% Total 4,369.7 3,400.1 0.1 603.1 673.5 472.2 1.7 494.2 217.9 434.7 502.5 0.3 684.6 179.0 427.3 30.1 48.2 162.3 205.9 182.0 24.0 14.0 14.0 65.1 65.1 444.0 444.0 45.5 101.9 93.0 203.6 4,813.8 1,182.3 3,631.5 1,089.7 4,721.2 % 90.8% 70.6% 0.0% 12.5% 14.0% 9.8% 0.0% 10.3% 4.5% 9.0% 10.4% 0.0% 14.2% 3.7% 8.9% 0.6% 1.0% 3.4% 4.3% 3.8% 0.5% 0.3% 0.3% 1.4% 1.4% 9.2% 9.2% 0.9% 2.1% 1.9% 4.2% 100.0%

114.0

975.7

The Company's gross debt on September 30, 2012 was R$ 4,813.8 million, an 18.7% increase in relation to the position recorded in June 30, 2012. When compared to the same period last year, the gross debt presented a 33.4% increase due to investments and interest acquisitions in other companies. The main fundings in the period were: (i) 8th issuance of Light SESA's debentures in the amount of R$ 470 million; (ii) 2nd and 3rd issuance of Light Energy's debentures in the total amount of R$ 425 million and R$ 30 million, respectively; (iii) resource release by the BNDES in the amount of R$ 490 million to Light SESA; and (iv) foreign exchange funding in the amount of R$ 202 million to Light SESA through the Citibank, for working capital purposes. The net debt recorded in September 2012 was R$ 3,621.6 million, which represents a 3.0% increase
3,143.5 3,516.6 3,631.5 Net Debt (ex-Braslight) (R$ m illion)

23
Sep-11 Jun-12 Sep-12

compared with the amount recorded in June 2012, due to the cash variation in the period. The net debt/EBITDA ration for September 2012 is 2.8x. The average debt maturity term is 3.7 years. The average cost of the debt denominated in reais is 8.5% p.a., 0.8 p.p. below the debt cost as of June 2012. The average cost of the debt denominated in foreign currency is US$ +3.0% p.a., 0.5 p.p. below the average cost as of June 2012. In the closing of September, 9.2% of the total indebtedness was denominated in foreign currency, and, given the hedge operation outlook, the foreign currency risk exposure reached 0.4% of the total, 0.2 p.p. below the one recorded in June 2012. The hedge policy consists in protecting the cash flow
97.9% 94.0% 90.8% 2.1% 6.0% 9.2% Indebtedness (Brazilian Currency x Foreign)

maturing over the next 24 months (principal and interest), by means of a non-cash swap

instrument with world-class financial institutions.


Sep-11 Jun-12
Brazilian Currency

Sep-12
Foreign Currency

24

Net income Light recorded a Net Profit in the amount of R$ 84.1 million for this quarter, contrasting with the R$ 1.6 million loss recorded in the 3Q11. In addition to the improved operating performance and the reduced net financial expense previously mentioned, such result was impacted by the non-recurring effects of: (i) Light Energia's equity accounting gain in the amount of R$ 15.9 million, as a result of Renova's interest dilution through the arrival of BNDESPAR to its capital, and (ii) fiscal benefit arising from the payment of Interest on Own Capital (JCP) in the amount of R$ 20.0 million. Without considering the energy purchase cost increase portion, which was offset by the rate review through the formation of regulatory assets and liabilities (CVA) not recorded in the result, the adjusted Net Profit would have been R$ 162.5 million, 119.0% higher than the one recorded in the 3Q11.

Net Income and Adjusted Net Income 3Q11/3Q12 R$ Million

119.0% 162

78 24 74 27 76 (2)
Adjusted NI Regulatory 3Q11 Assets and Liabilities 3Q11 EBITDA Financial Result Taxes Others 3Q12 Regulatory Adjusted NI Assets and 3Q12 Liabilities

84

30

Year to date, the net profit was R$ 264.0 million, 25.7% above the figure recorded for the same period in 2011. Given the CVA formation, the adjusted net profit would total R$ 392.3 million in the 9M12, 59.2% higher than the one recorded in the same period last year.

25

CAPEX In the first nine months of 2012, Light made a R$ 527.8 million investment, which is 10.9% smaller than the amount invested in the same period in 2011. The distribution segment volume, concentrated with R$ the
507.6 482.0 592.7 0.3 60.8 23.9 -10.9% 527.8 28.8 3.8 13.2

CAPEX (R$ MM)

highest

investment

482.0

million, which represents a

5.0% retraction

compared with the amount invested in the 9M11. Among the investments made, the ones aimed at the development of distribution grids (new
9M11
Distribution Administration

9M12
Generation Commercial

connections, increased capacity, and corrective maintenance), with the purpose of responding to market growth and increasing the grid's strength, in the amount of R$ 200.7 million, stand out. In addition to them, the investments made aiming at grid quality improvement and preventive maintenance, with the purpose of avoiding shut-downs and accidents with the populations, in the amount of R$ 97.9 million, should also be highlighted, as well as energy loss projects (grid shielding, electronic measurement system, and fraud regulation) in the amount of R$ 156.4 million. Investments made to the underground grid are included in the investments made to the distribution grid and quality improvement. As for the generation segment, the investments amount to R$ 13.2 million year to date, R$ 11.5 million of which refer to the modernization and maintenance of the existing generating power station.

Generation Expansion Projects One of the Company's pillars is its Strategic Planning, as well as the increased participation of the energy generating segment in its results. In order to achieve such goal, the Company announced various generation projects, thus ensuring its installed capacity growth. With SHP Paracambi going live in May, 2012, and Renova's first wind farm going live in July, 2012, in addition to Renova's operating SHPs, plus Light Energia's existing capacity, the current installed capacity totals 942 MW. Given the projects under development stage, the generation installed capacity will grow by 59.3% over the next years, going from the current 942 MW to 1,500 MW.

26

Generation Expansion (MW) 280 74* 868


Existing Capacity

59.3% 22 942 171 1,478

1,500

855

13 855

9 942

77

951

1,028

1,198

Light Energia (+) SHP (+) Renova Capacity Paracambi

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

(+) Belo Monte

(+) Guanhes

Capacity after expansion

* 9MW SHPs + 65MW Wind farms (operational start on jul/12)

In the third quarter of 2012, the following events related to the development of Light's generation capacity expansion projects were held: SHP Lajes The basic project remains under analysis by Aneel. With the approval of this project, it will be

possible to start the works in 2013, with generation expected to become effective in 2014, once the SHP has already had its installation license issued. With capacity to generate 17 MW, the unit will be installed at the HPP Fontes Velha's powerhouse. In addition to increasing the generating capacity, other benefits arising from the project include improved operational flexibility, modernization of CEDAE's adductor's supply, control over the Pira River's floodwaters, and water quality improvement to the Lajes Reservoir.

Itaocara The Itaocara Hydroelectric Development concession dates back to February 2001, currently belonging to the Consortium composed of Itaocara Energia S.A.(51%) and Cemig Gerao e Transmisso S.A.(49%). The Itaocara project was initially planned to provide 195 MW output. Upon request by Ibama, with the purpose of minimizing environmental impact, the Consortium revised the waterfall parceling, transforming it in two hydroelectric plants, Itaocara I, of 145 MW, and Itaocara II, of 50 MW. After such separation, the grantor only formalized the Itaocara I concession for the Consortium, with an expected budget of R$ 750 million. Currently, the HPP Itaocara Consortium is working on the attainment of the Installation License to be issued by IBAMA, with the works expected to be implemented in 2013.

27

Renova Energia (Renova) LER (Reserve Energy Auction) 2009: In July this year, the Alto Serto I wind compound was initiated as the greatest all over the Latin America, with 14 wind farms and 294.4 MW of installed capacity in the State of Bahia, as well as an investment in the amount of R$ 1.2 billion. In October 2012, the National Electric Power Agency (Aneel) disclosed the dispatches attesting that the 14 farms from the Alto Serto I wind compound that commercialized energy in the 2009 reserve energy auction (LER 2009) were able to start operating.

A-3 2011: During the third quarter of 2012 the SPEs that own the nine Wind farms that sell energy at A-3 2011 signed the Electric Energy Contract at the Regulated Environment - CCEARs, with a supply of 19 years and 10 months term.

A-3 2012 and A-5 2012: Renova has twelve undertakings with 270.4 MW of installed capacity authorized by the Energy Research Company (EPE) to take part in the A-3 2012 and A-5 2012 auctions, expected to be held in December 12 and 14, 2012, respectively.

28

Cash Flow

R$ MM Cash in the Beginning of the Period (1) Net Income Social Contributions & Income Tax Net Income before Social Contributions & Income Tax Provision for Delinquency Depreciation and Amortization Loss (gain) on intangible sales / Residual value of disposals fixed asset Losses (gains) on financing exchange activities Net Interests and Monetary Variations Braslight Atualization / provisions reversal Dilution of Renova's Gain Earning Before Taxes - Cash Basis Working Capital Contingencies Deferred Taxes Braslight Others Taxes Paid Interest Paid Cash from Operating Activities (2) Finance Obtained Dividends Loans and financing payments Financing Activities (3) Disposal of Assets/Intangible Fixed Assets/Intangible/Financial Assets Inflow/Acquisitions on Investment Dilution of Renova Investment Activities (4) Cash in the End of the Period (1+2+3+4) Cash Generation (2+3+4)

3Q12 523,0 84,1 2,8 81,4 39,3 87,9 1,6 (2,7) 67,1 25,4 35,0 (15,9) 319,1 (80,7) (25,9) (19,5) (28,1) 4,1 (9,8) (71,4) 87,7 863,6 (92,8) 770,8 3,1 (259,7) (12,8) 64,6 (204,8) 1.176,7 653,7

3Q11 436,9 (1,6) (1,7) 0,1 72,2 96,5 1,3 5,3 86,5 22,2 33,5 317,6 (28,7) (32,4) 27,0 (26,0) (42,6) (6,7) (53,0) 155,2 397,2 (55,3) 341,9 3,8 (264,3) (232,3) (492,8) 441,1 4,3

9M12 772,5 264,0 (85,5) 349,5 173,2 260,6 3,9 13,1 301,6 85,6 72,2 (15,9) 1.243,6 (247,9) (64,2) (35,2) (92,0) (57,1) (70,2) (222,1) 454,9 910,0 (73,7) (301,1) 535,2 4,9 (642,7) (12,8) 64,6 (586,0) 1.176,7 404,1

9M11 514,1 210,1 (96,7) 306,8 216,0 279,7 1,7 5,6 253,3 96,4 45,3 1.204,8 (237,9) (81,8) (116,5) (76,9) (79,4) (124,5) (165,6) 322,2 1.272,4 (351,0) (447,1) 474,3 8,5 (639,9) (238,1) (869,5) 441,1 (73,0)

The cash balance by the end of the third quarter of 2012 reached the amount of R$ 1,176.7 million. Year to date, cash generation totaled R$ 404.1 million, in contrast to the negative variation of R$ 73.0 million for the same period last year. Such performance was influenced by the acquisition of a stake at Renova Energia during the 3Q11, which contributed for a lower level of investments in comparison between the two periods. In the 9M12, operational cash generation reached R$ 454.9 million, 41.2% higher than 9M11.

29

Corporate Governance On September 30, 2012, Light S.A.'s capital stock was comprised of 203,934,060 common shares. Out of that total, 97,629,463 were outstanding shares. Light's current shareholders structure is provided below:
BTG PACTUAL 14.24% 2.74%

Indirect stake in blue

SANTANDER

28.59% 5.50% 28.59% FIP REDENTOR 75% 19.23% 25% CEMIG 6.41%

VOTORANTIM 5.50% 28.59% 5.50%

BANCO DO BRASIL

PARATI MINORITY SHAREHOLDERS 3.20% 0.42% 96.80% REDENTOR ENERGIA 100% 13.03% 100% 25.64%*

FIP LUCE 100% 13.03%

FOREIGN 59.36%

NATIONAL 40.64%

CEMIG 26.06%

RME 13.03% Controlling Shareholders 52.1% 13.03%

LEPSA

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)

On June 22, 2012, Renova Energia and BNDESPAR, a wholly owned subsidiary of BNDES (Brazilian Development Bank - Banco Nacional de Desenvolvimento Econmico e Social), announced an agreement through which BNDESPAR made an investment in Renova with the purpose of making a contribution to Renovas business plan, looking towards growth with profitability. The investment was made through a capital increase of 24,987,244 common shares and 8,730,416 preferred shares at the price of R$9.3334 per common or preferred share, equivalent to R$28.0002 per Unit and a total of R$314.7 million. The capital increase was ratified on October 2, 2012 during the Renovas Board of Directors meeting. BNDESPAR made a total investment of R$260.7 million, corresponding to a 12.2% stake in Renovas capital stock. The difference of R$ 54.0 million was paid in by the Renovas minority shareholders.

30

In the Company's Board of Directors' Meeting, held on July 13, 2012, there was approved and guided the favorable voting manifestation of the Company's representatives in the Extraordinary General Meeting of subsidiaries Light Energia S.A. and Light Servios de Eletricidade S.A. for the respective performance of the 3rd and 8th issuance of simple, unsecured debentures, non-convertible into shares, corresponding to the total amount of up to R$ 30 million, for the first one, and R$ 470 million, for the last one. Both will be subject to distribution private offer. In the Company's Extraordinary Board of Directors' Meeting, held in August 07, 2012, there was approved the appointment of Paulo Roberto Ribeiro Pinto, former Business Development Officer, to succeed Jerson Kelman as the Company's Chief Executive Officer as from that date, pursuant to the termination of his tenure. In the same meeting, all other members of the current Board of Directors were reelected for another three-year tenure, and the current Energy Officer, Evandro Leite Vasconcelos, was elected to also take over the position of Business Development Officer on a temporary and cumulative manner. On August 28, 2012, Light S.A. entered into the Definitive Instrument of Closing with Investminas Participaes S.A., related to the purchase of 26,520,000 class A, common shares of Guanhes Energia S.A., corresponding to 51% of interest in its capital stock, for the price of R$ 26,586,219.15. By reason of the execution of the Definitive Instrument of Closing, the First Addendum to the Shareholders' Agreement of Guanhes Energia was also executed and filed in Guanhes Energia's headquarters. The addendum presents Investminas Participaes S.A., Light Energia S.A., and Cemig Gerao e Transmisso S.A. (which holds 49% interest in Guanhes Energia's capital stock) as parties, and Guanhes Energia as consenting intervening party, in order to provide for the exit of Investminas and the entrance of Light Energia to the terms and conditions of the Shareholders' Agreement.

Capital Market Light's shares have been listed in BM&FBovespa's Novo Mercado since July 2005, in compliance with corporate governance best practices and with transparency and fairness principles, in addition to the granting of special rights to minority shareholders. Light S.A.'s shares comprise the following indexes: Ibovespa, IGC, IEE, IBrX, ISE, ITAG, and IDIV. Light's shares are traded in the American Over-theCounter (OTC) market through the Level 1 ADR, under the ticker LGSXY. Light S.A.'s shares (LIGT3) were priced at R$ 23.51 at the end of September. The Company's market value (no. of shares X price of the share) ended the quarter at R$ 4,794 million.
BM&F BOVESPA (spot market) - LIGT3 Daily Average 3Q12 3Q11 9M12 9M11 Number of shares traded (Thousand) 677.6 803.5 727.3 805.4 Number of Transac tions 2,803 2,543 2,694 2,326 Traded Volume (R$ Million) 16.6 21.6 18.7 21.9 Quotation per shares: (Closing)* R$ 23.51 R$ 22.70 R$ 23.51 R$ 22.70 Share Valuing (Quarter) 0.6% - 8.9% -14.1% 3.6% IEE Valuing (Quarter) -10.8% - 6.7% -7.7% 2.1% Ibovespa Valuing (Quarter) 8.6% - 19.0% 4.3% - 24.5%
*Ajusted by earnings.

31

The graphs below show the profile of the Company's outstanding share holders in September.

Free Float Composition*

Foreigners

National Legal Entities 22.3% Foreign 59.4% Indivudual 18,3%

Europe 18,1% Asia 10,9%

Oceania 1.8% America w/out USA 2.8%

USA 66,4%

*Excluding BNDESPAR's interest

The graph below presents Light's share evolution from January 01, 2011 to October 31, 2012.

Light x Ibovespa x IEE Base jan/11 = 100 until 10/31/2012 2011 IEE IBOV LIGT3 20% -18% 25% 2012 IEE IBOV LIGT3 -12% 2% -20%

160

140

120 5% IEE 0% Light -18 % Ibovespa R$/share 01/03/11 22,23 10/31/12 21,85

100

80

60

Dec-10

Jan-11

Jun-11

Jul-11

Aug-11

Sep-11

Nov-11

Dec-11

Jan-12

Jun-12

Jul-12

Aug-12

May-11

May-12

Sep-12

40

Feb-11

Mar-11

Apr-11

Oct-11

Feb-12

Mar-12

Apr-12

Oct-12

32

Dividends The Company has the policy of distributing dividends in the minimum amount corresponding to 50% of the Company's adjusted net profit, calculated according to article 189 of the Corporate Law, the Brazilian accounting practices, and the CVM rules. On September 21, the distribution of interest on own capital, in the gross amount of R$ 71,376,921.00, which corresponds to R$ 0.35 per share, was approved by the Board of Directors. The net value per share corresponds to R$ 0.2975, with the 15% Withholding Tax already deduced, except for the shareholders who are exempt from such distribution. The payment of interest on own capital will be made by no later than April 30, 2013. All those persons holding shares of the Company on the base date of September 21, 2012 will be entitled to receive the corresponding amount. As from September 24, 2012, share transfers will be made on an ex-interest manner. On October 11, 2012, the payment of dividends approved by the Ordinary Shareholders' Meeting, held on April 11, 2012, was made. Said distribution corresponded to a total amount of R$ 181,501,313.40 or R$ 0.89 per share. All those persons holding shares of the Company on the base date of April 12, 2012 were entitled to receive the corresponding amount.

Paid dividends, dividend yield, and payout

100%

100% 76,3% 81%

100%

39,7%

50%

2007

2008

2009

2010

2011

1S12

Payout

Minimum Dividends Policy

33

8,2% 4,2%

9,9% 1,7% 408

8,1%

8,1% 6,1% 3,4% 3,3% 1,5%

432 363 351

351

203

187

205 87

182 71

118 1S08 2S08 1S09 2S09 1S10 2S10 1S11 2S11 1S12 2S12

Dividends

Interest on Equity

Dividend Yeld*

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

Recent Events On November 6, 2012, ANEEL ratified the 11.41% average readjustment of Light's rates for the period initiated on November 07, 2012, covering all consumption classes (residential, industrial, commercial, rural, and others). The readjustment index, applicable to the rates affective between November 07, 2012 and November 07, 2013, is comprised of two components: the structural component, which is now part of the rate, with a readjustment corresponding to 7.17%; and the financial component, which is valid for the period of one year, having a positive adjustment corresponding to 3.60%, replacing the 0.64% negative adjustment of the previous period. See Annex V On the first day of November, the Company informed its shareholders and the market in general that its subsidiary Light Energia S.A. (Light Energia) had filed a request for registration as a publicly-held company (Registration Request), in the B category, with the Brazilian Securities and Exchange Commission (CVM), on October 30, 2012. Being registered in the B category provides for the trading of the issuer's securities in security regulated markets, except for shares and share certificate of deposit or securities that provide the holder with the right to purchase said shares or share certificates of deposit. The Registration Request does not include a request for a joint security distribution public offer.

On November 6, BNDES Participaes S.A.- BNDESPAR (BNDESPAR), Light, Light Energia S.A. (Light Energia), RR Participaes S.A. (RR), Ricardo Lopes Delneri (Ricardo

34

Delneri), Renato do Amaral Figueiredo (Renato Amaral), and Renova, as an intervening party, celebrated today a new shareholders agreement ("Agreement"), pursuant to the "Contrato Particular de Promessa de Subscrio de Certificados de Depsitos de Aes (Units) de Emisso da Renova Energia S.A. e Outras Avenas, celebrated on June 22, 2012, between BNDESPAR, Renova, Light Energia, Light, RR, Ricardo Delneri and Renato Amaral, as amended.

35

Disclosure Program
Schedule Teleconference 11/12/2012, Monday, at 4:00 p.m. (Brazilian Time) and at 1:00 p.m. (NY Time), with simultaneous translation to English Access conditions: Webcast: link on site www.light.com.br/ri (portuguese and english) Conference Call - Dial number: Brazil: (55) 11 - 4688-6361 Other countries: +1 (786) 924 6977 Access code: Light

Warning Operating information and information related to the Management's expectations for the Company's future performance have not been revised by the independent auditors. Statements regarding future events are subject to risks and uncertainties. Such statements are based on our Management's beliefs and assumptions, as well as on information to which the Company has currently had access. Statements about future events include information regarding our current intentions, beliefs or expectations, as well as those of the Board of Directors' members and the Company's Officers. Exceptions for those statements and information about the future also include data on possible or assumed operating results, as well as statements that are preceded or followed by or even include the terms "believes", "may", "will", "continues", "expects", "foresees", "intends", "estimates" or similar expressions. Statements and information about the future do not represent a performance guarantee. They involve risks, uncertainties and assumptions because they refer to future events, thus depending on circumstances that may or may not become true. Both future results and the creation of value to shareholders may significantly differ from those expressed or suggested by the statements about the future. Many of the factors that will determine said results and values are beyond LIGHT S.A.'s controlling capacity or forecast.

36

ANNEX I Statement of Income per Company - R$ million

LIGHT SESA Net Operating Revenue Operating Expense Operating Result EBITDA Financial Result Other Operating Inc omes/Expenses Result before taxes and interest Net Income EBITDA Margin*
* Doesn't consider C onstruction Revenue.

3Q12 1,586.5 (1,473.6) 112.9 182.2 (88.6) 1.5 25.8 43.0 12.9%

3Q11 1,553.5 (1,453.9) 99.6 179.6 (128.1) (0.5) (29.0) (20.1) 13.6%

Var. % 2.1% 1.4% 13.4% 1.5% -30.8% -

9M12 4,997.6 (4,504.2) 493.5 706.4 (300.9) (2.5) 190.1 156.7 15.6%

9M11 4,811.0 (4,312.3) 498.7 731.4 (300.3) (1.8) 196.6 137.8 17.2%

Var. % 3.9% 4.5% -1.1% -3.4% 0.2% 37.3% -3.3% 13.7% -

LIGHT ENERGIA Net Operating Revenue Operating Expense Operating Result EBITDA Equity Pick-up Financial Result Other Operating Inc omes/Expenses Result before taxes and interest Net Income EBITDA Margin COMMERCIALIZATION Net Operating Revenue Operating Expense Operating Result EBITDA Financial Result Other Operating Inc omes/Expenses Result before taxes and interest Net Income EBITDA Margin

3Q12 109.9 (48.7) 61.2 79.3 14.8 (20.2) (0.2) 55.6 43.8 72.1% 3Q12 85.8 (78.7) 7.2 6.9 0.3 7.1 4.9 8.1%

3Q11 82.9 (36.4) 46.5 60.5 (19.6) (0.5) 26.4 17.4 73.0% 3Q11 42.2 (38.8) 3.4 3.6 0.4 3.8 2.6 8.4%

Var. % 32.6% 33.9% 31.6% 31.0% 3.0% -54.5% 110.6% 152.2% Var. % 103.4% 102.8% 110.3% 95.0% -31.8% 86.3% 91.0% -

9M12 323.5 (129.2) 196.0 241.1 14.8 (60.2) 1.6 152.2 107.2 74.5% 9M12 204.1 (185.2) 18.8 18.4 0.3 18.1 12.4 9.0%

9M11 245.1 (108.1) 137.0 179.9 (37.8) 0.4 99.6 66.4 73.4% 9M11 140.0 (128.4) 11.6 12.1 0.6 12.3 8.4 8.6%

Var. % 32.0% 19.5% 43.0% 34.0% 59.0% 265.4% 52.8% 61.5% % 45.8% 44.3% 61.8% 51.6% -47.8% 48.0% 47.2% -

37

ANNEX II Statement of Consolidated Income


Consolidated - R$ MM NET OPERATING REVENUE OPERATING EXPENSE Personnel Material Outsourced Services Purchased Energy Depreciation Provisions Construction Revenue Others OPERATING RESULT() EBITDA () FINANCIAL RESULT Financial Income Financial Expenses Other Operating Incomes/Expenses RESULT BEFORE TAXES AND INTEREST SOCIAL CONTRIBUTIONS & INCOME TAX DEFERRED INCOME TAX 3Q12 1,748.0 (1,566.4) (78.8) (7.8) (105.1) (1,033.5) (87.9) (53.3) (170.3) (29.6) 181.5 269.5 (116.6) 36.6 (153.1) 16.4 81.4 (29.4) 32.1 3Q11 1,657.1 (1,512.0) (60.7) (5.9) (91.7) (923.3) (94.7) (83.4) (230.6) (21.7) 145.1 239.8 (144.0) 33.6 (177.6) (1.0) 0.1 (23.1) 21.5 Var. % 5.5% 3.6% 29.8% 33.6% 14.6% 11.9% -7.2% -36.1% -26.1% 36.4% 25.2% 12.4% -19.0% 8.8% -13.8% 26.9% 49.6% 9M12 5,450.2 (4,751.7) (221.8) (16.7) (305.3) (3,167.5) (260.6) (224.3) (470.0) (85.5) 698.5 959.1 (363.2) 142.2 (505.4) 14.2 349.5 (92.6) 7.1 9M11 5,129.7 (4,492.1) (198.4) (18.2) (303.8) (2,817.6) (277.9) (244.0) (556.9) (75.3) 637.6 915.5 (329.4) 128.4 (457.8) (1.4) 306.8 (115.9) 19.2 Var. % 6.2% 5.8% 11.8% -8.4% 0.5% 12.4% -6.2% -8.1% -15.6% 13.6% 9.5% 4.8% 10.2% 10.8% 10.4% 13.9% -20.1% -63.2%

NET INCOME 84.1 (1.6) 264.0 210.1 25.7% () Operation Result, Administration vision = Operating Result, accounting norms (Item 1.9.7 of Notice CVM 01/2007) + financials (net financial expenses + equity pick-up). () EBITDA = Operating Result, Administration vision + depreciation and amortization. Not reviewable by the external audit. (*) The consolidated financial statements include the Light S.A. and its subsidiaries and affiliates. These financial statements were eliminated from equity consolidated companies, the balances of receivables and payables, revenues and expenses between the companies.

38

ANNEX III Consolidated Balance Sheet


Consolidated Balance Sheet - R$ MM ASSETS Circulating Cash & Cash Equivalents Receivable Accounts Inventories Recoverable Taxes Prepaid Expenses Other Current Assets Non Circulating Receivable Accounts Deferred Taxes Prepaid Expenses Others Non-current Assets Investiments Fixed Assets Intangible Total Assets LIABILITIES Circulating Suppliers Fiscal obligations Loans and Financing Debentures Others Obligations Provisions Dividends and interest on equity to be paid Non Circulating Loans and Financing Debentures Others Obligations Deferred Taxes Provisions Shareholders' Equity Realized Joint Stock Profit Reserves Legal Reserve Profits Retention Additional Proposed Dividend Asset Valuation Adjustments Accumulated Profit/Loss of Exercise Total Liabilities 09/30/2012 3,098.4 1,192.2 1,361.9 38.6 155.5 12.3 337.9 8,788.2 237.0 810.7 0.0 1,441.8 66.9 2,072.0 4,159.7 11,886.5 9/30/2012 2,290.9 737.8 180.2 354.3 276.9 323.3 176.2 242.2 6,363.2 2,074.2 2,108.4 1,328.1 328.0 524.5 3,232.5 2,225.8 341.7 178.3 163.4 0.0 456.7 208.2 11,886.5 12/31/2011 2,726.9 780.7 1,383.6 27.4 270.6 2.2 262.3 8,354.4 298.5 811.5 0.3 1,029.3 54.1 1,985.8 4,174.9 11,081.3 12/31/2011 1,987.1 757.2 169.7 305.3 213.7 307.7 159.7 73.7 5,872.8 1,854.7 1,790.1 1,369.3 343.0 515.7 3,221.4 2,225.8 341.7 178.3 163.4 181.5 472.4 0.0 11,081.3

39

ANNEX IV Regulatory Asset and Liability


R$ Million TOTAL ASSET TOTAL LIABILITIES TOTAL DIFFERENCE Net difference (period) Net difference (ac cumulated) Sep-12 262.7 (45.6) 217.1 118.7 194.5 Jun-12 Mar-12 dec/11 174.4 (76.0) 98.4 75.7 73.6 177.8 (155.1) 22.7 (2.1) 185.3 (160.6) 24.8 32.1 87.2 Sep/11 151.2 (158.6) (7.4) 114.9 55.0 Jun-11 Mar-11 dec/10 134.3 (256.6) (122.2) 5.6 (59.8) 149.8 (277.7) (127.8) (65.4) 161.6 (224.0) (62.4) 78.0 (213.3)

Light in Numbers
OPERATING INDICATORS N of Consumers (thousand) N of Employees Average provision tariff - R$/MWh Average provision tariff - R$/MWh (w/out taxes) Average energy purchase cost - R$/MWh Installed generation capacity (MW) Assured energy (Average MW)) Pumping and internal losses (Average MW) Available energy (Average MW) Net Generation (GWh) Load Factor Does not include purchase on spot. 2Q12 4,011 4,203 443.0 308.1 116.6 942 685 87 598 1,132 66.0% 2Q11 4,118 4,123 411.0 284.0 104.3 866 637 87 550 1,157 64.8% Var. % -2.6% 1.9% 7.8% 8.5% 11.8% 8.7% -2.2% -

40

Annex V

Brazilian Electricity Regulator - ANEEL, in a public meeting held on this date, approved an average readjustment of 12,27% to Light SESAs tariffs for captive consumers, been 11,85% for residential consumers, for the 12-month period starting on November 7, 2012. The tariff readjustment has two components: the structural component, which now integrates tariff, of 7.17%; and the financial component exclusively applied to the next 12 months, of 3.60%.

Light 2012 Tariff Readjustment Structural TRI Financial Additions Total 7.17% 3.60% 10.77%

The annual tariff readjustment process consists of transferring the concessions non-controllable costs to consumers, such as energy purchase, sector charges and transmission charges (Parcel A) and the controllable costs adjustment (Parcel B) by IGP-M (General Market Price Index) less X Factor, which transfers the concessionaires annual efficiency gains to consumers. The variation verified in Parcel A from November 2011 to October 2012, of 4.83%, was affected by 16.89% increase in the energy purchase costs, due to the high of the dollar, which impacts the cost of energy from Itaipu, and the higher Differences Settlement Price (PLD), the latter impacting on the energy cost of contracts for energy availability of thermal plants. The Parcel B Variation (that effectively remains with Light SESA to cover its costs and pay its investments) reflects the IGP-M index accumulated from November 2011 to October 2012 of 7.52%, less X Factor of 0.48%, resulting in the final percentage of 7.04%. Taking into consideration the new financial component, exclusively applied for the next 12 months, of 3.60% and the removal of financial component that is currently present into Lights tariffs, of -0.64%, Light SESAs captive consumers will have an average increase in their electricity bills of 12.27%, while the increase for free consumers will be of 2.49%, reflecting an average effect of 11.41%, from November 2012. It is noteworthy that the effects of Provisional Measure 579 of 09.11.2012 are not included in this readjustment, since the tariff reduction is scheduled to take place in February 5, 2013, when ANEEL shall proceed the Extraordinary Tariff Review in all of Brazilians energy concessionaries.

41

LIGHT S.A.
BALANCE SHEETS (In Thousands of Reais)

Notes ASSETS Cash and cash equivalents Marketable securities Investments valued at fair value Consumers, concessionaires, permissionaires and clients Inventories Taxes and contributions Income tax and social contribution Prepaid expenses Dividends and interest on own equity receivable Services receivable Receivables from swap Other receivables TOTAL CURRENT ASSETS Consumers, concessionaires, permissionaires and clients Taxes and contributions Deferred taxes Prepaid expenses Financial assets from concessions Escrow deposits Receivables from swap Other receivables Investments Property, plant and equipment Assets in operation Construction in progress Intangible assets Concession agreements Other TOTAL NON-CURRENT ASSETS TOTAL ASSETS 6 7 9 10 19 31 11 12 13 4 5 6 7 8

Parent Company 30/09/2012 12/31/2011 15.594 3.048 12 184.375 149 6.002 209.180 260 3.275.047 672 55.057 3.395 182 78.510 150 13.763 151.057 215 3.155.002 672 3.155.889 3.306.946

Consolidated 30/09/2012 12/31/2011 1.176.675 15.488 1.361.862 38.617 136.218 19.233 12.342 125.735 27.216 184.993 3.098.379 237.033 213.625 810.713 937.420 284.221 822 5.739 66.886 1.730.135 341.844 3.830.517 329.212 8.788.167 11.886.546 772.548 8.171 1.383.620 27.430 158.962 111.649 2.180 84.964 3.801 173.550 2.726.875 298.538 95.622 811.464 263 656.473 268.505 754 7.979 54.086 1.395.320 590.513 3.851.404 323.496 8.354.417 11.081.292

31 11

14 3.275.979 3.485.159

The notes are an integral part of the financial statements.

42

LIGHT S.A.
BALANCE SHEETS

(In Thousands of Reais)


Parent Company 30/09/2012 31/12/2011 Consolidated 30/09/2012 31/12/2011

Notes LIABILITIES Suppliers Taxes and contributions Income tax and social contribution Loans, financing and financial charges In foreign currency In local currency Debentures and financial charges Swap payables Dividends and interest on own equity payable Estimated liabilities Regulatory charges Post-employment benefits Other liabilities TOTAL CURRENT LIABILITIES Loans, financing and financial charges In foreign currency In local currency Debentures and financial charges Swap payables Taxes and contributions Deferred taxes Provision for contingencies Labor provisions Civil provisions Tax provisions Other provisions Post-employment benefits Other liabilities TOTAL NON-CURRENT LIABILITIES SHAREHOLDERS' EQUITY Capital stock Profit reserves Legal reserve Profit retention Additional proposed dividends Equity valuation adjustments Retained earnings TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 24 16

15 7 8 16

106 7.586 242.172 338 2.505 252.707

197 8.911 2 73.741 233 2.488 85.572

737.847 118.613 61.622 12.673 341.663 276.856 5.134 242.172 60.059 116.104 114.044 204.109 2.290.896

757.158 108.760 60.974 12.313 292.241 213.740 787 73.741 47.379 112.356 80.525 227.154 1.987.128

17 31

18 21 22

17 31 7 9 19

431.354 1.642.819 2.108.404 197.775 328.012 125.264 180.855 195.655 22.692 975.700 154.668 6.363.198

219.696 1.634.052 1.790.132 976 200.263 342.967 150.121 163.572 186.478 15.507 1.015.615 153.411 5.872.790

21 22

2.225.822 178.288 163.407 456.734 208.201 3.232.452 3.485.159

2.225.822 178.288 163.407 181.501 472.356 3.221.374 3.306.946

2.225.822 178.288 163.407 456.734 208.201 3.232.452 11.886.546

2.225.822 178.288 163.407 181.501 472.356 3.221.374 11.081.292

The notes are an integral part of the financial statements.

43

LIGHT S.A. STATEMENT OF INCOME PERIODS ENDED SEPTEMBER 30 (In thousands of reais) Parent Company 07/01/2012 to 09/30/2012 28 (2.011) (2.011) 93.196 91.185 30 (7.064) 405 (7.469) tax 84.121 Current income and social contribution taxes Deferred income and social contribution taxes NET INCOME FROM CONTINUING OPERATIONS NET INCOME FOR THE PERIOD Attributed to controlling shareholders BASIC AND DILUTED EARNINGS PER SHARE (R$/Share) 9 9 84.121 84.121 84.121 0,412 263.955 263.955 263.955 263.955 1,294 (1.600) (1.600) (1.600) (1.600) (0,008) 210.064 210.064 210.064 210.064 1,030 81.370 (29.977) 32.728 84.121 84.121 84.121 0,412 349.459 (93.208) 7.704 263.955 263.955 263.955 1,294 69 (23.130) 21.461 (1.600) (1.600) (1.600) (0,008) 306.766 (115.945) 19.243 210.064 210.064 210.064 1,030 01/01/2012 to 09/30/2012 (8.751) (8.751) 277.514 268.763 (4.808) 2.758 (7.566) 07/01/2011 to 09/30/2011 (4.352) (4.352) (708) (5.060) 3.460 3.464 (4) 01/01/2011 to 09/30/2011 (9.774) (9.774) 212.047 202.273 7.791 8.003 (212) 07/01/2012 to 09/30/2012 1.747.996 (1.389.155) 358.841 (160.890) (69.086) (108.206) 16.402 197.951 (116.581) 32.889 (149.470) Consolidated 01/01/2012 to 09/30/2012 5.450.179 (4.170.699) 1.279.480 (566.850) (258.770) (322.247) 14.167 712.630 (363.171) 128.665 (491.836) 144.021 (143.952) 36.891 (180.843) 07/01/2011 to 09/30/2011 1.657.093 (1.324.804) 332.289 (188.268) (97.549) (89.682) (1.037) 636.192 (329.426) 128.056 (457.482) 01/01/2011 to 09/30/2011 5.129.694 (3.906.862) 1.222.832 (586.640) (299.799) (285.442) (1.399) -

Notes NET OPERATING REVENUE COST OF OPERATION GROSS PROFIT OPERATING EXPENSES Selling Expenses General and Administrative Expenses Other expenses Other income EQUITY PICKUP IN THE EARNINGS OF SUBSIDIARIES AND JOINT VENTURES EARNINGS BEFORE FINANCIAL RESULT AND TAXES FINANCIAL RESULT Income Expenses EARNINGS BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 26 28

The notes are an integral part of the financial statements.

LIGHT S.A. STATEMENT OF COMPREHENSIVE INCOME PERIODS ENDED SEPTEMBER 30 (In thousands of reais)

07/01/2012 to 09/30/2012 Net income for the period TOTAL COMPREHENSIVE INCOME Attributed to controlling shareholders 84.121 84.121 84.121

Parent Company 01/01/2012 to 07/01/2011 to 09/30/2012 09/30/2011 263.955 263.955 263.955 (1.600) (1.600) (1.600)

01/01/2011 to 09/30/2011 210.064 210.064 210.064

07/01/2012 to 09/30/2012 84.121 84.121 84.121

Consolidated 01/01/2012 to 07/01/2011 to 09/30/2012 09/30/2011 263.955 263.955 263.955 (1.600) (1.600) (1.600)

01/01/2011 to 09/30/2011 210.064 210.064 210.064

The notes are an integral part of the financial statements.

44

LIGHT S.A. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - PARENT COMPANY AND CONSOLIDATED PERIODS ENDED SEPTEMBER 30 (In thousands of reais)

PROFIT RESERVES CAPITAL STOCK 2.225.822 2.225.822 LEGAL RESERVE 178.288 178.288 The notes are an integral part of the financial statements. PROFIT RETENTION 163.407 163.407 ADDITIONAL DIVIDENDS PROPOSED 181.501 (181.501) EQUITY RETAINED EARNINGS/ VALUATION (ACCUMULATED) ADJUSTMENT LOSSES 472.356 (15.622) 456.734 15.622 263.955 (71.376) 208.201 TOTAL 3.221.374 263.955 (181.501) (71.376) 3.232.452 -

BALANCE ON DECEMBER 31, 2011 Equity valuation adjustment Net income for the period Dividends aproved at the Annual Shareholders' Meeting Interest on own equity BALANCE ON SEPTEMBER 30, 2012

LIGHT S.A. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - PARENT COMPANY AND CONSOLIDATED PERIODS ENDED SEPTEMBER 30 (In thousands of reais)

PROFIT RESERVES CAPITAL STOCK 2.225.822 2.225.822 LEGAL PROFIT RESERVE RETENTION 162.756 233.083 162.756 16.482 249.565 ADDITIONAL DIVIDENDS PROPOSED 214.381 (214.381) EQUITY RETAINED EARNINGS/ VALUATION (ACCUMULATED) ADJUSTMENT LOSSES 494.102 (16.482) 477.620 210.064 210.064 TOTAL 3.330.144 (214.381) 210.064 3.325.827

BALANCE ON DECEMBER 31, 2010 Dividends paid - profits reserve Realization of revaluation reserve Net income for the year BALANCE ON SEPTEMBER 30, 2011 The notes are an integral part of the financial statements.

45

LIGHT S.A. STATEMENT OF CASH FLOWS PERIODS ENDED SEPTEMBER 30 (In thousands of reais) Parent Company 01/01/2012 to 01/01/2011 to 09/30/2012 09/30/2011 Net income before income and social contribution taxes Adjustments of expenses/ (revenues) not affecting cash Allowance for doubtful accounts Depreciation and amortization Loss (gain) from the sale of intangible assets/property, plant and equipment Exchange losses (gains) from financial activities Provision for contingencies/adjustments Adjustment of receivables to present value Interest expenses over loans Charges and monetary variation on post-employment liabilities Equity pickup in the earnings of subsidiaries and joint ventures Gain from dilution in Renova (Increase)/Decrease in Assets Marketable securities Consumers, concessionaires, permissionaires and clients Dividends received Deferred taxes and contributions Inventories Receivables from services rendered Prepaid expenses Escrow deposits Other Increase/(Decrease) in liabilities Suppliers Estimated liabilities Deferred taxes and contributions Sector charges Provisions Post-employment benefits Other liabilities Interests paid Income and social contribution taxes paid Net cash from operating activities Cash flow from investment activities Receivables from the sale of property, plant and equipment Acquisition of property, plant and equipment Acquisition of intangible assets Additions to/acquisition of investment Net cash from dilution in Renova Net cash used in investment activities Cash flow from financing activities Dividends and interest on own equity paid Loans and borrowings Amortization of loans and borrowings Net cash used in financing activities 263.955 210.064 Consolidated 01/01/2012 to 01/01/2011 to 09/30/2012 09/30/2011 349.459 306.766

(277.514) -

(212.047) -

173.165 260.591 3.865 13.057 72.170 32.411 269.177 85.627 (15.912)

216.039 279.704 1.666 5.563 45.324 (4.255) 257.587 96.397 -

74.686 (9.608) 170 (45) 9.062

420.473 (511) 147 (21) (18.948)

(7.317) (123.662) (87.758) (11.187) (40.771) (9.899) (16.193) (27.012)

(12.826) (127.301) (81.503) (7.766) (21.092) (8.613) (26.791) (55.694)

(91) 105 9.381 (634) 69.467

478 73 58 4.078 403.844

(67.720) 12.680 52.525 3.748 (64.151) (92.023) (17.648) (222.149) (70.172) 454.901

(70.148) 9.857 (35.001) 1.864 (81.777) (76.947) 1.208 (165.580) (124.524) 322.157

(35.189) (35.189)

(18.805) (18.805)

4.881 (205.819) (436.883) (12.803) 64.635 (585.989)

8.489 (80.427) (559.494) (238.057) (869.489)

(73.741) (73.741)

(350.979) (350.979)

(73.741) 910.006 (301.050) 535.215

(350.979) 1.272.435 (447.119) 474.337

Increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year Changes in cash and cash equivalents

(39.463) 55.057 15.594 (39.463)

34.060 38.295 72.355 34.060

404.127 772.548 1.176.675 404.127

(72.995) 514.109 441.114 (72.995)

The notes are an integral part of the financial statements.

46

LIGHT S.A. STATEMENT OF VALUE ADDED PERIODS ENDED SEPTEMBER 30 (In thousands of reais) Parent Company 01/01/2012 to 01/01/2011 to 09/30/2012 09/30/2011
Revenues Sales of goods, products and services Revenues from construction of infrastructure Allowance for/reversal of allowance for doubtful accounts Input acquired from third parties Costs of products, goods and services sold Material energy outsourced services other Gross value added Retentions Depreciation and amortization Net value added produced Value added received in transfers Equity pickup in the earnings of subsidiaries and joint ventures Financial income Total value added to distribute Distribution of value added Personnel Direct compensation Benefits Government Severance Fund for Employees (FGTS) Other Taxes, fees and contributions Federal State Municipal Value distributed to providers of capital Interest Rental Other Value distributed to shareholders Dividends and interest on own equity Retained earnings The notes are an integral part of the financial statements. (5.670) (5.670) (5.670) (5.670) 280.272 277.514 2.758 274.602 274.602 2.902 2.758 82 62 191 191 7.554 7.554 263.955 71.376 192.579 (6.791) (6.791) (6.791) (6.791) 220.050 212.047 8.003 213.259 213.259 2.848 2.620 85 143 133 133 214 212 2 210.064 210.064

Consolidated 01/01/2012 to 01/01/2011 to 09/30/2012 09/30/2011


8.243.101 7.786.220 630.046 (173.165) (4.166.362) (3.167.463) (998.899) 4.076.739 (260.591) (260.591) 3.816.148 142.223 142.223 3.958.371 3.958.371 186.730 132.593 33.693 14.062 6.382 2.941.086 1.178.446 1.756.002 6.638 566.600 505.150 45.137 16.313 263.955 71.376 192.579 7.510.991 7.160.144 566.886 (216.039) (3.737.372) (2.250.685) (1.486.687) 3.773.619 (277.949) (277.949) 3.495.670 128.366 128.366 3.624.036 3.624.036 169.983 127.664 27.240 11.932 3.147 2.741.329 1.029.815 1.704.962 6.552 502.660 455.222 31.575 15.863 210.064 210.064

47

TABLE OF CONTENTS
1. 2. OPERATIONS GROUPS ENTITIES

3. APPROVAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLIED IN PREPARING THE FINANCIAL INFORMATION 4. CASH AND CASH EQUIVALENTS 5. SHORT-TERM INVESTMENTS 6. CONSUMERS, CONCESSIONARIES, PERMISSIONARIES AND CLIENTS 7. TAXES AND CONTRIBUTIONS 8. INCOME TAX AND SOCIAL CONTRIBUTION 9. DEFERRED TAXES 10. CONCESSION FINANCIAL ASSETS 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. OTHER RECEIVABLES INVESTMENTS PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS SUPPLIERS LOANS, FINANCING AND FINANCIAL CHARGES DEBENTURES AND FINANCIAL CHARGES REGULATORY CHARGES PROVISIONS CONTINGENCIES POST-EMPLOYMENT BENEFITS OTHER PAYABLES RELATED-PARTY TRANSACTIONS SHAREHOLDERS EQUITY EARNINGS PER SHARE NET OPERATING REVENUE ELECTRIC POWER SUPPLY OPERATING COSTS AND EXPENSES ELECTRIC POWER PURCHASED FOR RESALE FINANCIAL INCOME FINANCIAL INSTRUMENTS AND RISK MANAGEMENT INSURANCE REPORTABLE SEGMENT LONG-TERM INCENTIVE PLAN SUBSEQUENT EVENTS

48

NOTES TO THE QUARTERLY INFORMATION ENDED SEPTEMBER 30th, 2012


(In thousands of Brazilian Reais R$ unless otherwise stated) 1. OPERATIONS The corporate purpose of Light S.A. (Company), a publicly-held company headquartered in the City of Rio de Janeiro/RJ - Brazil, is to hold equity investments in other companies, as partner or shareholder, and is involved in the direct or indirect exploration, as applicable, of electric power services, including electric power generation, transmission, sale and distribution systems, as well as other related services. The Company is listed in the New Market (Novo Mercado) of the So Paulo Stock Exchange (BM&FBovespa) under the ticker LIGT3 and in the U.S. over-the-counter market under the ticker LGSXY. On September 11th, 2012, the federal government, aiming at reducing electricity costs for consumers, published the Provisional Measure No. 579 (MP 579). On September 14th, 2012, the Presidential Decree No. 7,805 was enacted, which defined some operating procedures to implement the MP 579. This Provisional Measure allowed the concessionaires with agreements expiring between 2015 and 2017 the possibility of extending their concessions through the conditions set forth therein. For the power generation concessionaires with agreements expiring on the dates mentioned above, main conditions refers to a change to a periodic tariff review. Upon the concessions agreement renewal, residual assets will be indemnified by the new replacement value (VNR). Future investments in the infrastructure shall be previously approved by the regulatory agency. The indemnity conditions for electrical distribution companies only will be known when the granting authority releases the draft of the addendum to the public utility concession agreements. Considering that the Companys concessions will expire only after 2026, the rules introduced by MP 579 currently do not affect the Company and no relevant effect to be recognized was identified. The Provisional Measure complemented by the Presidential Decree, introduced a schedule of events so that the directly involved concessionaires may enter into new concession agreements by the end of 2012. However, the Provisional Measure has been analyzed by the National Congress and may be amended. The Companys Management will continue reporting in its future financial statements any material effect to the extent any additional information is disclosed by public authorities. Light Groups concessions and authorizations effective as of September 30th, 2012 as follows:

49

Concessions / grants Light SESA and Light Energia PCH Paracambi Itaocara Hydroelectric Power Plant Wind Power Plants - Renova Wind Power Plants - Renova Wind Power Plants - Renova PCH Dores de Guanhes - Guanhes PCH Senhora do Prto - Guanhes PCH Jacar - Guanhes PCH Fortuna II - Guanhes

Date Jul/1996 Feb/2001 Mar/2001 Aug/2011 Mar/2011 to May/2011 Apr/2012 Nov/2002 Oct/2002 Oct/2002 Dec/2001

Expiration Jun/2026 Feb/2031 Mar/2036 Aug/2045 Mar/2046 to May/2046 Apr/2047 Nov/2032 Oct/2032 Oct/2032 Dec/2031

2. GROUP ENTITIES a) Direct Subsidiaries Light Servios de Eletricidade S.A. (Light SESA 100%) - Publicly-held corporation engaged in the distribution of electric power, with a concession area comprising 31 cities in the State of Rio de Janeiro, including its capital. Light Energia S.A. - (Light Energia 100%) - Privately-held corporation, headquartered in the city of Rio de Janeiro, whose main activity is to (a) study, plan, construct, operate and exploit systems of electric power generation, transmission, sales, and related services that have been legally granted or to be granted or authorized or to companies with which it holds or to hold controlling interest; (b) to hold investments in other companies as a partner, shareholder or quotaholder. It comprises the Pereira Passos, Nilo Peanha, Ilha dos Pombos, Santa Branca and Fontes Nova plants, with a total installed capacity of 855 MW. On October 30th, 2012, Light Energia S.A. filed a request a register of listed company with the Brazilian Securities and Exchange Commission CVM, which currently is under analysis Light Energia holds investments in the following subsidiaries:

Central Elica So Judas Tadeu Ltda. (So Judas Tadeu 100%) - Company at a start-up stage whose main activity is the generation and sale of electric power through an wind power plant located in the State of Cear, with 18 MW nominal power. Central Elica Fontainha Ltda. (Fontainha 100%) - Company at a start-up stage whose main activity is the generation and sale of electric power through an wind power plant located in the State of Cear, with 16 MW nominal power. Renova Energia S.A. (Renova Energia 22.0% interest held, joint venture) a listed corporation whose main activity is the generation of electric power through renewable alternative sources, such as, small hydroelectric power plants (PCHs) and wind power plants. Renova Energia holds direct or indirect investments totaling 42 MW in operation and 1,068 MW contracted. The companies in which Renova Energia holds investments are presented as follows:

50

RENOVA - Interest Enerbras Centrais Eltricas S.A. Energtica Serra da Prata S.A. Renova PCH Ltda. Nova Renova Energia S.A. Bahia Elica Participaes S.A. Centrais Elicas Pinda S.A. Centrais Elicas Igapor S.A. Centrais Elicas Licnio de Almeida S.A. Centrais Elicas Candiba S.A. Centrais Elicas Ilhus S.A. Salvador Elica Participaes S.A. Centrais Elicas Alvorada S.A. Centrais Elicas Paje do Vento S.A. (*) (**) (**) (**) (*) (*) (*) (*) (*) (**) (*) (*) Centrais Elicas Planaltina S.A. Centrais Elicas Rio Verde S.A. Centrais Elicas Guirap S.A. Centrais Elicas Nossa Senhora Conceio S.A. Centrais Elicas Guanambi S.A. Centrais Elicas Porto Seguro S.A. Centrais Elicas Serra do Salto S.A. Renova Elica Participaes S.A. Centrais Eltricas Borgo Ltda. Centrais Eltricas Dourados Ltda. Centrais Eltricas Maron Ltda. Centrais Eltricas Serra do Espinhao Ltda. Centrais Elicas Ametista Ltda. (*) (*) (*) (*) (*) (*) (*) (**) (**) (**) (**) (**) (**) Centrais Elicas Caetit Ltda. Centrais Elicas Espigo Ltda. Centrais Elicas Pelourinho Ltda. Centrais Elicas Piles Ltda. Centrais Elicas So Salvador Ltda. Centrais Eltricas Morro Ltda. Centrais Eltricas Serama Ltda. Centrais Eltricas Tanque Ltda. Centrais Elicas dos Araas Ltda. Centrais Elicas da Prata Ltda. Centrais Elicas Ventos do Nordeste Ltda. Centrais Eltricas Botuquara Ltda. Centrais Eltricas Itaparica Ltda. (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**) (**)

(*) 30-year period Aneels authorization; (**) Companies in pre-operating stage on September 30th, 2012, with 30-year period Aneels authorization.

The indirect interest held in Renova PCH LTDA, Nova Renova Energia S.A., Centrais Eltricas Botuquara LTDA and Centrais Eltricas Itaparica LTDA represents to 21.8%, while in other companies is 22.0%. Guanhes Energia S.A. (Guanhes Energia - 51%) - Privately-held corporation in pre-operating stage, headquartered in the city of Belo Horizonte MG, was created with the purpose of implementing small hydroelectric power plants (PCHs) in the state of Minas Gerais, with total installed capacity of 44.80 MW. The startup of the first PCH is scheduled for October 2013 and the last one in February 2014. The company is a joint venture of Light Energia S.A. (51%) and Cemig Gerao e Transmisso S.A. - Cemig GT (49%).

Light Esco Prestao de Servios S.A. - (Light Esco 100%) Privately-held corporation , headquartered in the city of Rio de Janeiro - RJ, whose main activity is the purchase, sale, import, export and advisory services in the energy sector. The company is party of Maracan Solar consortium to manage the photovoltaic plant to be installed on the top of the Maracan stadium (51%). EDF Consultoria holds 49% interest in this consortium. Light Esco also holds investments in the following joint ventures interests: EBL Companhia de Eficincia Energtica S.A. (EBL 33.3% of the joint venture) a company engaged in providing services and energy efficiency solutions, rental of equipment and facilities at units owned or rented by Telemar Norte Leste S.A.

Lightcom Comercializadora de Energia S.A. (Lightcom 100%) Privately-held corporation, headquartered in the city of So Paulo - SP, engaged in the purchase, sale, import, export and provision of advisory services in the energy segment. Itaocara Energia Ltda. - (Itaocara Energia 100%) Company in the start-up stage, primarily engaged in the execution of project, construction, installation, operation and exploration of electric power generation plants. It holds investment in UHE Itaocara consortium for the exploration of Itaocara Hydroelectric Power Plant (51%). Cemig Gerao e Transmisso S.A. holds 49% interest. Light Solues em Eletricidade Ltda. (Light Solues - 100%) Limited liability company whose main activity is to provide services to clients, including assembly, improvement and maintenance of installations in general. 51

Instituto Light para o Desenvolvimento Urbano e Social (Light Institute - 100%) Nonprofit private limited company, engaged in social and cultural projects, for the development of the cities economic and social environment which reinforce the Companys ability to be socially responsible. b) Investment in Joint Ventures Lightger S.A. (Lightger) A privately held company, and the main operation is to participate in auctions for concession, authorization and permission for new power electric plants. On December 24th, 2008, Lightger obtained the installation license that authorized the start the construction of Paracambi small hydroelectric power plant (PCH). The turbine wills start the operation in the third quarter of 2012. The joint controlled interest owned by Light S.A is 51% and by Cemig Gerao e Transmisso S.A. - Cemig GT is 49%. Axxiom Solues Tecnolgicas S.A. (Axxiom) Privately-held corporation, headquartered in the city of Belo Horizonte MG and the purpose of Axxion is to offer technology solutions and systems for operating management of public utilities companies, including electric power, gas, water and sewage and other public utilities. It is joint controlled interest owned by Light S.A. is 51% and Companhia Energtica de Minas Gerais - CEMIG is 49%. CR Zongshen E-Power Fabricadora de Veculos S.A. (E-Power) A privately-held corporation and jointly controlled, in the startup stage, the purpose of which is to manufacture Kasinski two-wheel electric vehicles. Light S.A. and CR Zongeshen Fabricadora de Veculos S.A., referred to as Kasinski are the two shareholders of EPower with 20% and 80% interest, respectively, registered as common shares. Amaznia Energia Participaes S.A. (Amaznia Energia) Privately-held corporation, the purpose of Amaznia Energia is to hold investments, as shareholder, of Norte Energia S.A. (NESA), which holds the concession for the use of public utilities to explore Belo Monte Hydroelectric Power Plant, in Xingu river, in the State of Par. Amaznia Energia is a joint controlled interest owned by Light S.A. is 25.5% and by Cemig Gerao e Transmisso S.A. - Cemig GT is74.5%. Amaznia Energia holds a 9.8% interest in NESA.

52

c) Light Group Consolidated Entities The consolidated quarterly information includes participation in its subsidiaries and joint ventures as follows:
09/30/2012 Percentage of Percentage of interest (%) interest (%) Direct Indirect Light Servios de Eletricidade S.A. Light Energia S.A. Central Elica Fontainha Ltda Central Elica So Judas Tadeu Ltda Renova Energia S.A. Guanhes Energia S.A. Light Esco Prestao de Servios S.A. EBL Companhia de Eficincia Energtica S.A. Lightcom Comercializadora de Energia S.A. Light Solues em Eletricidade Ltda. Instituto Light para o Desenvolvimento Urbano e Social Itaocara Energia Ltda. Lightger S.A. Axxiom Solues Tecnolgicas S.A. Amaznia Energia Participaes S.A. CR Zongshen E-Power Fabricadora de Veculos S.A. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 51.0 25.5 20.0 100.0 100.0 22.0 51.0 33.3 12/31/2011 Percentage of Percentage of interest (%) interest (%) Direct Indirect 100.0 100.0 100.0 100.0 100.0 100.0 100.0 51.0 51.0 25.5 20.0 100.0 100.0 25.9 33.3 -

3. APPROVAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLIED IN PREPARING THE FINANCIAL INFORMATION The approval and authorization of these quarterly financial statements was given by the Companys Board of Directors as of November 6th, 2012. The Companys Financial Statements have been prepared for the three and nine-month periods ended September 30th, 2012 and are prepared in accordance with IAS (International Accounting Standards) 34 which corresponds to CPC 21 under Brazilian Committee on accounting standards for interim financial statements. IAS 34 requires the use of certain accounting estimates by the Company's Management. The consolidated financial information has been prepared using historical cost basis accounting, except for certain financial assets and liabilities which are measured at fair value. The parent company interim financial information was prepared in accordance with the accounting practices adopted in Brazil, CPC 21, which deals with interim financial statements. The parent company financial information is prepared for statutory purposes where investments in subsidiaries are measured by the equity method of accounting, according to Brazilian legislation. Thus, these parent company financial statements have not been prepared under the IFRS which require the evaluation of these investments in separate financial statements of parent at fair value or cost. The parent company and consolidated interim financial information do not include all the information or disclosures required for annual parent company and consolidated financial statements, therefore, they must be read together with the parent company and consolidated financial statements for the year ended December 31st, 2011, filed on March 9th, 2012, which were prepared according to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and 53

also according to the accounting practices adopted in Brazil (BR GAAP). There were no changes in the accounting practices adopted on December 31st, 2011 to September 30th, 2012. The Company has chosen to present the parent company and consolidated financial information as a single set of accounts, since there is no difference between the parent and consolidated shareholders equity and the net income. 4. CASH AND CASH EQUIVALENTS
Parent Company 09/30/2012 12/31/2011 Cash Financial investments of immediate liquidity Bank deposit certificate (CDB) Total 36 15,558 15,594 152 54,905 55,057 Consolidated 09/30/2012 12/31/2011 43,668 1,133,007 1,176,675 81,138 691,410 772,548

The short-term investments are highly liquid and convertible into know amounts cash and are subject a floating rate represented by transactions purchased from financial institutions trading in the domestic financial market, at market terms and rates. These short-term investments have a daily repurchase commitment by the counterparty financial institution (the repurchase rate is previously agreed upon by the parties), and yield according to the variation of the interbank deposit rate (CDI), without relevant loss of income in case of early redemption. The short-term investments are yielded at rates varying from 98.5% to 103.0% of CDI.

The Company's exposure to interest rate risks and a sensitivity analysis of financial assets and liabilities are reported in Note 31. 5. SHORT TERM INVESTMENTS These short-investments are subject a floating rate bank deposit certificates (CDB), for the amount of R$15,488 (R$8,171 on December 31st, 2011) in the consolidated quarterly information, forming the underlying assets of certain surety bonds pledged in power auctions, and also other proceeds from the sale of assets that were held for reinvestment in the electric network infrastructure system or investments to mature within more than three months with significant loss of income in case of early redemption.

54

6. CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES AND CLIENTS


CURRENT Billed sales Unbilled sales Debt payment by installments Other receivables Consolidated 09/30/2012 12/31/2011 1,605,210 302,581 135,311 351 2,043,453 Sales within the scope of CCEE Supply and charges related to the use of electric network 9,811 77,021 86,832 (-) Allowance for doubtful accounts TOTAL CURRENT NON-CURRENT Debt payment by installments Other receivables TOTAL NON-CURRENT 211,414 25,619 237,033 267,530 31,008 298,538 (768,423) 1,361,862 1,756,814 295,153 171,227 238 2,223,432 7,083 48,510 55,593 (895,405) 1,383,620

The balances of debt payment by installments were adjusted to their present value, as applicable. The present value is determined for each relevant consumer debt renegotiation (debt repayment facilities) based on such interest rate as will reflect the term and risk associated with each individual transaction, on average 1% per month. The balance includes the present value of one repayment agreement with installment anticipate options (these options, once exercised, give customers a discount on any anticipate installment). An allowance for doubtful accounts was set up based on certain premises and in an amount deemed sufficient by Management to meet any asset realization losses. In the third quarter of 2012, bad debts were written-off in the total amount of R$47,702 (R$300,147 until September 30th, 2012) mainly related to overdue bills for a long time, and within tax deductibility criteria. The write-offs were accounted for against allowance for doubtful accounts already recorded, thus, not resulting gain or loss in the net income. The receivables and overdue balances are in connection with invoiced electric power sales and also debt repayment programs that are summarized as follows:
Maturing balance 240,143 22,493 151,566 674 47,972 14,425 17,089 494,362 Matured balances Overdue up Overdue over to 90 days 90 days 139,089 16,520 55,654 435 23,978 1,532 11,047 248,255 512,093 147,771 305,700 686 108,175 23,546 111,347 1,209,318 TOTAL 09/30/2012 891,325 186,784 512,920 1,795 180,125 39,503 139,483 1,951,935 12/31/2011 1,076,732 190,982 503,736 1,668 163,060 38,713 220,680 2,195,571 Allowance for doubtful accounts 09/30/2012 (507,942) (37,072) (218,957) (607) (3,809) (36) (768,423) 12/31/2011 (615,747) (38,768) (236,649) (589) (3,642) (10) (895,405)

Billed sales and renegotiated debts Residential Industrial Commercial Rural Public sector Public lighting Public utility Total - current and non-current

55

Changes in consolidated Allowance for Doubtful Accounts - PCLD in the periods:

Balance on December 31, 2011 Additions/Reversals Write-offs Balance on September 30, 2012

895,405 173,165 (300,147) 768,423

Balance on December 31, 2010 Additions/Reversals Write-offs Balance on September 30, 2011

1,058,502 216,039 (61,258) 1,213,283

The Companys exposure to credit risks related to consumers, concessionaires, permissionaires and clients is reported in Note 31. 7. TAXES AND CONTRIBUTIONS
Parent Company Liabilities 09/30/2012 12/31/2011 7,466 12 108 7,586 8,843 12 56 8,911

CURRENT PIS/COFINS payable ICMS payable Other Total

CURRENT ICMS recoverable ICMS payable Installment Payments - Law 11,941/09 PIS/COFINS recoverable PIS/COFINS payable Other Total NON-CURRENT Installment Payment - Law 11,941/09 ICMS recoverable Total

Consolidated Assets Liabilities 09/30/2012 12/31/2011 09/30/2012 12/31/2011 63,516 53,134 19,568 136,218 107,634 33,296 18,032 158,962 38,609 17,844 49,964 12,196 118,613 13,669 16,924 63,368 14,799 108,760

213,625 213,625

95,622 95,622

197,775 197,775

200,263 200,263

The Tax Installment Payment - Law 11,941/09, as consolidated by the Federal Revenue Service on June 27th, 2011, the subsidiary Light SESA has been paying monthly installments in the amount of R$13,499 until September 30th, 2012 (R$9,794 on 56

September 30th, 2011). The installment balance is restated by SELIC rate, whose amount recorded in the income statement for the period is R$11,931 (R$11,227 until September 30th, 2011). 8. INCOME TAX AND SOCIAL CONTRIBUTION
Parent Company Assets Liabilities 09/30/2012 12/31/2011 09/30/2012 12/31/2011 3,029 19 3,048 3,380 15 3,395 2 2

CURRENT Tax credits IRPJ and CSLL IRRF (Withholding Income Tax) payable Prepaid IRPJ/CSLL Total

CURRENT Tax credits IRPJ and CSLL IRRF (Withholding Income Tax) payable Prepaid IRPJ/CSLL Provision for IRPJ/CSLL Total

Consolidated Assets Liabilities 09/30/2012 12/31/2011 09/30/2012 12/31/2011 19,233 19,233 13,606 98,043 111,649 23,215 38,407 61,622 620 60,354 60,974

9. DEFERRED TAXES
Consolidated 09/30/2012 ASSETS Income Tax Tax losses Temporary differences Social Contribution Tax loss carryforward Temporary differences Net assets Basis of calculation Deferred tax 12/31/2011 Basis of calculation Deferred tax

865,606 1,509,944 899,239 1,509,944

216,401 377,486 80,931 135,895 810,713

894,750 1,483,008 928,383 1,483,008

223,688 370,752 83,553 133,471 811,464

Consolidated 09/30/2012 LIABILITIES Income Tax Temporary differences Social Contribution Temporary differences Net liabilities Basis of calculation Deferred tax 12/31/2011 Basis of calculation Deferred tax

964,741 964,741

241,185 86,827 328,012

1,008,727 1,008,727

252,182 90,785 342,967

57

The temporary non-deductible differences basis breakdown is as follows:

ASSETS Allowance for doubtful debtors Provision for profit sharing Provision for labor contingencies Provision for tax contingencies Provision for civil contingencies Impacts resulting from the adoption of the new CPCs Other TOTAL - ASSETS LIABILITIES Deemed cost - Light Energia Concession surplus TOTAL - LIABILITIES

Consolidated 09/30/2012 12/31/2011 IR / CSLL IR / CSLL 726,460 17,866 123,006 191,014 203,888 247,710 1,509,944 874,785 18,749 148,641 185,981 186,731 53,829 14,292 1,483,008

693,946 270,795 964,741

715,692 293,035 1,008,727

Reconciliation of effective and nominal rates in the provision for income tax and social contribution:
Consolidated 07.01 to 09.30 Earnings before income and social contribution taxes (LAIR) Combined rate of income and social contribution taxes Income and social contribution taxes to the tax rates under current regulation Effect of income and social contribution taxes over permanent additions and exclusions Interest expenses on equity capital Unrecognized deferred tax credits CVM n 371/02 - Light S.A. Tax deficiency notice - Light Energia Income and social contribution taxes - Lightger - presumed profit Tax incentives Other Income and social contribution taxes Current income and social contribution taxes in profit and loss Deferred income and social contribution taxes in profit and loss 2012 81,370 34% (27,666) 5,543 24,268 312 152 626 (484) 2,751 (29,977) 32,728 2,751 Effective income and social contribution tax rates -3.4% 2011 69 34% (23) (1,547) (564) (317) 849 (67) (1,669) (23,130) 21,461 (1,669) 2418.8%

58

Consolidated 01.01 to 09.30 Earnings before income and social contribution taxes (LAIR) Nominal rate of income and social contribution taxes Income and social contribution taxes to the tax rates under current regulation Effect of income and social contribution taxes over permanent additions and exclusions Interest expenses on equity capital Unrecognized deferred tax credits CVM n 371/02 - Light S.A. Tax deficiency notice - Light Energia Income and social contribution taxes - Lightger - presumed profit Tax incentives Other Income and social contribution taxes Current income and social contribution taxes in profit and loss Deferred income and social contribution taxes in profit and loss 2012 349,459 34% (118,816) 9,968 24,268 (1,212) (1,075) 2,081 (718) (85,504) (93,208) 7,704 (85,504) Effective income and social contribution tax rates 24.5% 2011 306,766 34% (104,300) 6,615 (1,076) (317) 2,394 (18) (96,702) (115,945) 19,243 (96,702) 31.5%

On September 30th, 2012, the Company had unrecognized accumulated tax loss amounting to R$29,731 (R$31,802 - consolidated). 10. CONCESSIONS FINANCIAL ASSETS These represent the amounts receivable at the end of concession from the granting authority, or any of its agents, by way of compensation for investments made and not recovered through services rendered related to subsidiary Light SESA's concession. ANEEL Normative Resolution No. 474 of February 7th, 2012, established new depreciation rates for assets in service granted in the electricity sector, effective as of January 1st, 2012, determining the change in the economic useful life of assets composing the distribution infrastructure. Considering that this change implied, on average, in lengthening the useful life of assets and the consequence is a decrease in the amortization of intangible assets and an increase in the residual amount of infrastructure that the Company expects to receive as indemnity at the end of the concession period. Consequently, infrastructure was redistributed which is classified in intangible assets and financial assets, as a result of the adoption of IFRIC 12/OCPC 5 Concession Agreements. The Company made calculations to determine the new estimate of indemnity for reversible assets at the expiration of the concession term in 2026 and the amount imputable to intangible assets. Considering economic, regulatory aspects and a better accounting expertise, on March 31st, 2012, this re-measurement of infrastructure resulted in the reclassification of R$118,288 of intangible assets account to financial assets, without changing other accounting procedures resulting from the adoption of IFRIC 12/OCPC 5 Concession Agreements.

59

Changes in financial concession assets:

Balance on December 31, 2011 Additions Reclassification of ANEEL Resolution 474/12 Balance on September 30, 2012

656,473 162,659 118,288 937,420

Balance on December 31, 2010 Additions Write-offs Balance on September 30, 2011

469,030 60,520 (267) 529,283

11. OTHER RECEIVABLES


CURRENT Advances to suppliers and employees Account receivable from the sale of property Public lighting fee Expenditures to refund Subsidy to low-income segment Loan agreement with Lightger Other Total NON-CURRENT Assets and rights for disposal Other Total 2,147 3,592 5,739 7,213 766 7,979 Parent Company 09/30/2012 12/31/2011 166 5,836 6,002 156 11,606 2,001 13,763 Consolidated 09/30/2012 12/31/2011 33,980 20,209 50,959 26,932 10,274 42,639 184,993 32,915 12,130 54,999 23,484 12,654 37,368 173,550

60

12. INVESTMENTS
Accounted for under the equity method: Light SESA Light Energia Light Esco LightCom Light Solues Lightger Itaocara Energia (a) Axxiom Amaznia Energia (a) E-Power (a) Subtotal Goodwill from future profitability Other permanent investments Subtotal TOTAL INVESTMENTS (a) Pre-operating companies Parent Company 09/30/2012 12/31/2011 2,328,496 727,959 89,893 8,502 1,979 41,794 24,591 5,186 44,385 170 3,272,955 2,092 2,092 3,275,047 2,314,175 670,064 55,072 5,821 1,520 40,678 23,472 4,427 37,545 140 3,152,914 2,088 2,088 3,155,002 Consolidated 09/30/2012 12/31/2011 66,886 66,886 66,886 54,086 54,086 54,086

Acquisition of interest in Renova Energia S.A. Renova Energia

On August 17th, 2011, the subsidiary Light Energia S.A. acquired 34.85% of Renova common shares and 25.9% of its total capital, then now composing the control group that was wholly controlled by RR Participaes S.A. The shareholders agreement established the joint control between the subsidiary Light Energia and RR Participaes S.A. The acquired net assets in the amount of R$360,000. The difference between the amount paid of R$360,000 and the carrying amount of R$163,288 refers to the concession surplus, an intangible asset with a defined useful life recorded in intangible assets under the consolidated balance sheet. This asset will be amortized by the concession terms as of the companies in connection with companies start operations. On March 30th, 2012, the Management concluded the measurament of assets and liabilities from the acquisition of interest in Renova Energia. The Company does not expect that the amount allocated as concession surplus of this transaction to be deductible for tax purposes. Therefore, the Company recognized R$99,632 as deferred liabilities against the concession surplus, identifiable intangible asset, with a view to not changing the effective rate of income and social contribution taxes arising from the surplus amortization, as of July 2012, when Renova Energias wind power plants will start the operations. Therefore, this transaction did neither affect results nor shareholders equity. Below, the table with the net assets acquired from Renova Energia:

61

Current assets Property, plant and equipment Intangible assets Other non-current assets Current liabilities Non-current liabilities Total net identifiable assets

136,145 243,814 296,344 5,158 101,213 220,248 360,000

The balances of intangible assets and deferred tax liabilities stated in the consolidated financial statements as of December 31st, 2011, have been reclassified for comparison purposes, as shown below:
Consolidated 12/31/2011 Published Non-current assets Intangible assets Non-current liabilities Deferred taxes 243,335 99,632 342,967 Note 9 196,224 99,632 295,856 Note 14 Reclassification 12/31/2011 Reclassified Reference

The amounts from the acquisition of interest in Renova Energia were considered as a non cash transactions on the cash flows lines items in 2011.

Acquisition of interest in Guanhes Energia S.A. (joint venture)


On August 28th, 2012, the subsidiary Light Energia S.A. concluded the acquisition of interest investments in Guanhes Energia, by acquiring 51% of the common shares which was held by Investminas Participaes S.A.. The Guanhes Energia was incorporated to implement the small hydroelectric power plants (PCHs) Dores de Guanhes, Senhora do Porto, Jacar and Fortuna II, all of them located in the state of Minas Gerais, with a total installed capacity of 44.80 MW. The startup of the first PCH is expected for October 2013 and the last one for February 2014. The Guanhes Energia S.A. is a joint venture of subsidiary Light Energia S.A. (51%) and Cemig Gerao e Transmisso S.A. - Cemig GT (49%). The acquired net assets totaled R$26,586. The difference between the amount paid of R$26,586 and the carrying amount of R$10,357 refers to the concession surplus, an identifiable intangible asset with finite useful life recorded in intangible assets under the consolidated balance sheet. This asset will be amortized by the concession terms as of the startup of each company. Below, the chart including the net assets acquired from Guanhes Energia:

62

Current assets Property, plant and equipment Intangible assets Other non-current assets Current liabilities Non-current liabilities Total net identifiable assets

11,286 10,727 24,589 159 37 9,253 26,586

Dilution of interest in Renova Energia S.A.

On July 13th, 2012, Renova Energia S.A. and BNDES Participaes S.A. (BNDESPAR), a wholly-owned subsidiary of the Brazilian Development Bank (BNDES), signed an agreement whereby BNDESPAR would hold interest in the capital of Renova Energia. On September 26th, 2012, this operation was concluded and BNDESPAR subscribed and paid-up 23,059,239 common shares and 4,875,036 preferred shares, as a result of the free assignment of preemptive right by RR Participaes S.A., Light Energia S.A. and InfraBrasil Fundo de Investimento em Participaes to BNDESPAR to increase capital at the issue price of R$9.3334 per share in the amount of R$314,702. After BNDESPAR entering into Renova Energia S.A.s capital stock, the subsidiary Light Energia S.A.s interest investment in Renova Energia S.A. decreased from 25.9% to 22.0%. This operation resulted in equity gains of R$15,912 in subsidiary Light Energia. Below, the dilution amounts related to interest in Renova Energia, which were eliminated as nos cash transaction from the cash flows statement in the each line for the nine-month period of 2012:

Property, plant and equipment Intangible Other assets Loans and financing Other liabilities

60,040 43,479 2,373 35,113 6,912

Information on subsidiary and joint ventures entities

63

09/30/2012 Light SESA Light Energia Light Esco LightCom Light Solues Instituto Light Lightger Itaocara Energia Axxiom Amaznia Energia E-Power

Ownership interest (%) 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 51.0 25.5 20.0

Paid-up capital 2,082,365 77,422 64,584 4,500 1,350 300 40,408 29,562 4,692 45,444 1,263

Shareholders' equity 2,328,496 727,959 89,893 8,502 1,979 41,794 24,591 5,186 44,385 170

Dividends and interest on equity Dividends and interest payable on equity paid (131,123) (48,646) (3,125) (1,428) (69,948) (4,738) -

Income(loss) for the period 156,743 107,212 9,224 3,126 624 1,116 1,836 759 (864) (456)

Total assets 9,370,690 2,319,660 128,779 25,269 2,246 1 118,323 94,376 7,812 44,385 447

12/31/2011 Light SESA Light Energia Light Esco LightCom Light Solues Instituto Light Lightger Itaocara Energia Axxiom Amaznia Energia E-Power

Ownership interest (%) 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 51.0 25.5 20.0

Paid-up capital 2,082,365 77,422 17,584 1,000 1,350 300 40,408 29,562 4,692 37,740 376

Shareholders' equity 2,314,175 670,064 55,072 5,821 1,520 40,678 23,472 4,427 37,545 140

Dividends and interest on equity Dividends and interest payable on equity paid (84,453) (5,574) (2,269) (962) (259,534) (230,704) -

Income(loss) for the year 215,729 90,750 9,554 4,050 223 (754) 136 1,103 (195) (196)

Total assets 8,699,821 2,098,802 83,972 25,399 1,752 2 104,462 86,525 6,526 37,545 317

09/30/2011 Light SESA Light Energia Light Esco LightCom Light Solues Instituto Light Lightger Itaocara Energia Axxiom E-Power

Ownership interest (%) 100.0 100.0 100.0 100.0 100.0 100.0 51.0 100.0 51.0 20.0

Paid-up capital 2,082,365 77,422 17,584 1,000 800 300 40,408 24,794 4,692 120

Shareholders' equity 2,374,128 712,044 53,049 5,858 666 40,250 18,651 4,010 120

Dividends paid (206,146) (169,914) -

Income(loss) for the period 137,841 66,365 5,264 3,124 (134) (1,182) 83 686 -

Total assets 8,056,013 1,965,841 79,261 20,482 680 2 79,127 152,960 6,049 -

Changes in subsidiaries and joint ventures


12/31/2011 Light SESA Light Energia Light Esco LightCom Light Solues Lightger Itaocara Energia Axxiom Amaznia Energia E-Power 2,314,175 670,064 55,072 5,821 1,520 40,678 23,472 4,427 37,545 140 Capital increase 47,000 3,500 7,703 486 Additional dividends proposed (142,422) (49,316) (20,864) (3,556) Other (1) (539) (389) (165) (717) 1 Equity method 156,743 107,212 9,224 3,126 624 1,116 1,836 759 (864) (456) 09/30/2012 2,328,496 727,959 89,893 8,502 1,979 41,794 24,591 5,186 44,385 170

12/31/2010 Light SESA Light Energia Light Esco LightCom Light Solues Lightger Itaocara Energia Axxiom E-Power 2,442,433 815,593 37,787 2,733 50 36,767 16,067 2,304 -

Capital increase 10,000 752 4,665 2,500 1,020 120

Dividends paid (206,146) (169,914) -

Other (2) 1 (2) 1 -

Equity method 137,841 66,365 5,264 3,124 (134) (1,182) 83 686 -

09/30/2011 2,374,128 712,044 53,049 5,858 666 40,250 18,651 4,010 120

The joint ventures balances on September 30th, 2012 which the proportionate consolidation method is applied as follows:

64

AXXIOM ASSETS Current Non-current Total assets LIABILITIES Current Non-current Shareholders' equity Total liabilities STATEMENT OF INCOME Net revenue from sales Cost of sales Gross profit General and administrative expenses Net financial income Income before income and social contribution taxes Income and social contribution taxes Net income for the year 19,039 (1,529) 17,510 (15,916) 76 1,670 (182) 1,488 4,383 336 10,598 15,317 10,240 5,078 15,318

E-POWER

AMAZNIA

LIGHTGER

74 2,158 2,232

814 173,242 174,056

39,470 192,537 232,007

628 1,605 2,233

174,056 174,056

30,690 119,367 81,950 232,007

(2,265) (15) (2,280) (2,280)

(3,388) (3,388) (3,388)

14,633 (578) 14,055 (11,851) 4,306 6,510 (4,322) 2,188

13. PROPERTY, PLANT AND EQUIPMENT


Consolidated 09/30/2012 Accumulated depreciation Net value (1,541,148) (42,844) (28,411) (190,222) (8,451) (1,811,076) 1,562,295 34,580 5,782 121,890 5,588 1,730,135 242,642 99,202 341,844 12/31/2011 Net value 1,247,770 15,429 9,913 119,477 2,731 1,395,320 496,135 94,378 590,513

Historical cost Generation Transmission Distribution Administration Sales In service Generation Administration In progress TOTAL OF PROPERTY, PLANT AND EQUIPMENT 3,103,443 77,424 34,193 312,112 14,039 3,541,211 242,642 99,202 341,844

3,883,055

(1,811,076)

2,071,979

1,985,833

65

Changes in property, plant and equipment:


Consolidated Balance on 12/31/2011 PROPERTY, PLANT AND EQUIPMENT IN SERVICE Cost Land Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Cost (-) Depreciation Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Depreciation PROPERTY, PLANT AND EQUIPMENT IN PROGRESS Land Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Studies and projects Total Property, Plant and Equipment in Progress TOTAL PROPERTY, PLANT AND EQUIPMENT 1,517 126,373 88,985 254,285 898 28,726 89,729 590,513 1,985,833 1,400 21,171 16,455 32,086 156 81,378 152,646 93,254 (3,367) (504) (97,437) (39,318) (213,481) (2,130) (48,445) (401,315) (3,741) 2,413 50,107 66,122 72,890 898 26,752 122,662 341,844 2,071,979 105,130 1,278,923 270,244 1,337,104 29,849 134,993 3,156,243 (2) (24) (2) (12,600) (6) (12,634) 5,978 45,717 19,061 324,572 2,273 397,601 111,108 1,324,638 289,281 1,661,674 17,249 137,260 3,541,210 Additions Write offs Transfers for Service Balance on 09/30/2012

(779,535) (157,208) (690,487) (23,547) (110,146) (1,760,923)

(16,038) (4,647) (34,308) (1,045) (3,354) (59,392)

9,267 9,267

(7) 163 (186) 3 (27)

(795,580) (161,692) (724,981) (15,325) (113,497) (1,811,075)

* Including the diluted interest in Renova Energia S.A


Consolidated Balance on 12/31/2010 PROPERTY, PLANT AND EQUIPMENT IN SERVICE Cost Land Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Cost (-) Depreciation Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Total Property, Plant and Equipment in Service - Depreciation PROPERTY, PLANT AND EQUIPMENT IN PROGRESS Land Reservoir, dams and water mains Buildings, works and improvements Machinery and equipment Vehicles Fixtures and furnishings Studies and projects Total Property, Plant and Equipment in Progress TOTAL PROPERTY, PLANT AND EQUIPMENT 77,614 44,511 118,790 10,055 13,589 36,398 300,957 1,628,893 1,414 33,061 11,216 180,092 28 54,158 419 280,388 302,517 (2,088) (5,586) (9,467) (9,324) (7,883) (32,260) (32,260) 1,414 110,675 50,141 289,415 759 67,747 28,934 549,085 1,897,062 105,026 1,250,703 255,954 1,245,946 32,491 127,073 3,017,193 154 24,729 13,221 33,627 9,276 2,723 83,730 (323) (276) (174) (6,148) (6,921) 104,857 1,275,432 268,899 1,279,399 35,619 129,796 3,094,002 Additions Write offs Inter-account transfers Balance on 09/30/2011

(756,181) (149,576) (654,084) (27,898) (101,518) (1,689,257)

(17,942) (6,169) (28,766) (2,072) (6,652) (61,601)

222 174 4,437 4,833

(774,123) (155,523) (682,676) (25,533) (108,170) (1,746,025)

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(i) Annual depreciation rates:


Main depreciation rates, according to Aneel Resolution No. 474 dated February 7th, 2012, are as follows:
GENERATION Bus Circuit breaker Buildings Water intake equipment Water intake structure Generator Reservoirs, dams and water mains Local communication system Water turbine % 2.50 3.03 3.33 3.70 2.86 3.33 2.00 6.67 2.50 SELLING Buildings Equipment in general Vehicles % 3.33 6.25 14.29 ADMINISTRATION Buildings Equipment in general Vehicles % 3.33 6.25 14.29 TRANSMISSION System conductor Equipment in general System structure Recloser % 2.70 6.25 2.70 4.00

The Company did not identify evidence impairment of its property, plant and equipment. The concession agreements of Light Energia subsidiary provide that at the end of each concessions term, the granting authority will determine the amount to be indemnified to the Company, so that the Management understands that the book value of fixed assets not depreciated at the end of concession and will be reimbursable by the granting authority. The indirect joint venture Renova Energias concession agreements do not provide for indemnities at the end of the concession and assets will be depreciated according to Aneels useful life term, restricted to the concession period. In 2012, R$6,867 were carried over to property, plant and equipment by way of interest capitalization, recorded by transfer and against financial result. (ii) Consortium The Company participates in electric power generation concession consortium to which no companies were organized on an independent legal basis in order to manage of the concession and maintaining appropriated controls for fixed assets, according to Aneel Order n 3.467 of September 18th, 2008. The Company, through the subsidiary Itaocara Energia, holds 51% interest in UHE Itaocara consortium and Cemig Gerao e Transmisso S.A. Cemig GT holds 49.0% interest. The consortium aims the exploration of Itaocara hydroelectric power plant. Assets and liabilities balances referring to the participation in the Consortium are incorporated into the balances of the subsidiary. The Company through its subsidiary Light ESCO S.A. holds 51.0% interest in the Maracan Solar consortium, whereas EDF Consultoria em Projetos de Gerao de Energia Eltrica Ltda. EDF Consultoria holds 49% interest. The consortium aims the development, construction and operation of a photovoltaic plant with capacity of 391 kW to be installed on the top of the Maracan stadium.

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14. INTANGIBLE ASSETS


Consolidated 09/30/2012 Historical cost Intangible Concession right of use Other In service Concession right of use Other In progress TOTAL INTANGIBLE (a) 6,668,057 519,941 7,187,998 797,830 228,729 1,026,559 8,214,557 Accumulated amortization (3,635,370) (419,458) (4,054,828) (4,054,828) Net value 3,032,687 100,483 3,133,170 797,830 228,729 1,026,559 4,159,729 Reclassified 12/31/2011 Net value 3,052,040 96,747 3,148,787 799,364 226,749 1,026,113 4,174,900

a) Net of special obligations comprising (i) contributions made by the federal government, states, municipal and consumers, (ii) any unqualified donations and subsidy intended as investments to be made toward concession of the electric power distribution utility. The balance of special obligations on September 30th, 2012 amounted to R$154,314 (R$150,892 at December 31st, 2011). Intangible in progress includes inventories of materials in the amount of R$72,807 as of September 30th, 2012 (R$81,444 as of December 31st, 2011), as well as a provision for inventory devaluation in the amount of R$5,749 (R$5,749 as of December 31st, 2011). The Company has not identified evidence impairment of its other intangible assets. A total amount of R$10,553 (R$4,107 on September 30th, 2011) was carried over to intangible assets in the period 2012 by way of interest capitalization, recorded by transfer and against financial result. The infrastructure used by subsidiary Light SESA is associated with the distribution service, and therefore cannot be removed, disposed of, assigned, conveyed, or encumbered as mortgage collateral without the prior written authorization of the granting authority, which authorization, if given, is regulated by Aneel Resolution No. 20/99. Changes in the intangible assets:

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Consolidated Reclassified Balance on 12/31/2011 In Service Concession right of use Other Total Intangible in Service (-) Amortization Concession right of use Other Total Intangible in Service - Depreciation In Progress Concession right of use Other Total Intangible in Progress TOTAL INTANGIBLE ASSETS 6,510,662 497,394 7,008,056 Additions Write offs Inter-account transfers * Balance on 09/30/2012

8,360 8,360

(46,358) (46,358)

195,393 22,547 217,940

6,668,057 519,941 7,187,998

(3,458,622) (400,647) (3,859,269)

(178,991) (18,783) (197,774)

2,243 2,243

(28) (28)

(3,635,370) (419,458) (4,054,828)

799,364 226,749 1,026,113 4,174,900

477,400 25,515 502,915 313,501

(44,115)

(478,934) (23,535) (502,469) (284,557)

797,830 228,729 1,026,559 4,159,729

*Includes a reclassification for the amount of R$118,288 referring to Aneel Normative Resolution No. 474/12 (see Note 10) and transfer of R$162,659 to Concession Financial Asset, as a result of the split of assets upon startup, pursuant to IFRIC 12/ICPC 01.
Consolidated Balance on 12/31/2010 In Service Concession right of use Goodwill from future profitability Other Total Intangible in Service (-) Depreciation Concession right of use Other Total Intangible in Service - Depreciation In Progress Concession right of use Other Total Intangible in Progress TOTAL INTANGIBLE ASSETS 5,897,129 2,034 450,714 6,349,877 Additions 427,736 26,833 454,569 Write offs (4,587) (4,587) Inter-account transfers (60,356) (60,356) Balance on 09/30/2011 6,259,922 2,034 477,547 6,739,503

(3,218,801) (367,943) (3,586,744)

(189,400) (28,600) (218,000)

3,811 3,811

(103) (103)

(3,404,493) (396,543) (3,801,036)

788,111 62,528 850,639 3,613,772

540,315 22,359 562,674 799,243

(776)

(237,961) (26,570) (264,531) (324,990)

1,090,465 58,317 1,148,782 4,087,249

It is the responsibility of Aneel in its capacity as regulatory agency to determine the estimated economic useful lives of each piece of distribution infrastructure assets for pricing purposes, as well as for the purpose of calculating the amount of the relevant compensation payable upon expiration of the concession term. This estimate is revised from time to time, represents the best estimate concerning the assets' useful lives, and is accepted in the market as appropriate for accounting and regulatory purposes. The Management understands that amortization of the concession's right of use must be consistent with the return expected on each infrastructure asset, via the applicable rates. Thus, intangible assets are amortized over the expected length of such return, limited to the term of the concession. As mentioned in Note 10, the main depreciation rates, based on assets useful lives estimate were modified by Normative Resolution No. 474, which resulted in the reclassification of R$118,288 of the intangible assets account to financial assets on March 31st, 2012, without changing other accounting procedures deriving from the adoption of IFRIC 12/OCPC 5 Concession Agreements. 69

Below, the comparative chart of amortization rates pursuant to Aneel Resolution No. 474 of February 7th, 2012:

DISTRIBUTION Bank of capacitors Distribution key System conductor Circuit breaker Buildings System structure Meter Voltage regulator Recloser Transformer

% 6.67 6.67 3.57 3.03 3.33 3.57 6.77 4.35 4.00 4.00

Use of Public Utilities (UPU) In accordance with OCPC 05, the power electric generation concession agreements understand that the right and corresponding liability simultaneously rely on concessionaire upon the signature of the concession agreement (authorization), the intangible asset is initially measured at cost (in the instrument of ownership). In case of fixed granting, the cost corresponding to the amount already expensed and to be expensed shall be recognized at present value, as per Accounting Pronouncement CPC 12 Present Value Adjustment. The Company has onerous concession agreement in Itaocara consortium. The UPU balance (current and non-current) recorded on September 30th, 2012 is R$66,341 (R$60,317 on December 31st, 2011). 15. SUPPLIERS
CURRENT Sales within the scope of CCEE Electric network usage charges System service charges Free energy refund to generation companies (a) Electric power auctions Itaipu binational UTE Norte Fluminense Supplies and services Total Parent Company 09/30/2012 12/31/2011 106 106 197 197 Consolidated 09/30/2012 12/31/2011 39,683 56,104 2,216 56,813 141,817 135,645 117,591 187,978 737,847 20,066 55,580 2,216 53,266 196,789 110,165 118,226 200,850 757,158

a) Free Energy Reimbursement to Power Generation Companies Aneel Resolution No. 387 as of December 15th, 2009, published on January 12th, 2010, concluded the process of calculating the Revenue Loss and Free Energy closing balances after the conclusion of the Extraordinary Tariff Review - RTE, and also determined the amounts of any reimbursement operators should pay each other, as applicable, and payments shall be made on April 9th, 2011. However, said reimbursements are suspended according to injunction filed by the Brazilian 70

Association of Electricity Distribution Operators (ABRADEE) on April 7th, 2011. The balance was ratified at R$48,985 and the variation, from ratification, results from adjustment by SELIC (overnight lending rate) variation, in the amount of R$7,828. During the period ended September 30th, 2012, the Company purchased assets for the maintenance and expansion of the concession for the amount of R$55,433 (R$62,377 on June 30th, 2012). These were directly recorded by suppliers and did not affect the cash balance. The Companys exposure to credit risks related to suppliers is reported in Note 31. 16. LOANS, FINANCING AND FINANCIAL CHARGES
Current Financing Entity TN - Par Bond TN - Surety - Par Bond TN - Discount Bond TN - Surety - Discount Bond TN - C. Bond TN - Debit. Conv. TN - Bib Merril Lynch BNP Citibank TOTAL FOREIGN CURRENCY Eletrobrs CCB Bradesco Working capital - Santander BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI BNDES - Capex 11/12 Subcredit 2 BNDES - Capex 11/12 Subcredit 3 BNDES - Capex 11/12 Subcredit 4 BNDES - Capex 11/12 L.Electricity BNDES - Light Ger BNDES - PROESCO 1 funding BNDES - PROESCO 2 funding BNDES - PROESCO 3 funding BNDES - PROESCO 4 funding BNDES - PROESCO 5 funding BNDES - PROESCO 6 funding BNDES - PROESCO 7 funding Renova Energia - NP Renova Energia - BNDES Renova Energia - Bco do Nordeste RGR Sundry bank guarantees TOTAL DOMESTIC CURRENCY Overall total
th th th th rd nd st

Consolidated Non-current Total 2,246 421 7,223 245 394 1,616 528 12,673 617 119,161 487 83,174 30,034 30,079 12,821 11,422 18,709 18,782 2,725 4,227 40 35 1,436 1,127 674 112 102 4,177 1,411 246 65 341,663 354,336 Principal 79,030 (62,030) 55,144 (43,465) 6,718 101,530 91,367 203,060 431,354 1,047 375,000 80,000 82,615 106,252 106,252 76,081 121,755 199,100 199,100 23,909 60,877 135 120 5,825 2,699 1,266 226 207 169,095 22,539 1,634,100 2,065,454 Charges 8,719 8,719 8,719 Total 79,030 (62,030) 55,144 (43,465) 6,718 101,530 91,367 203,060 431,354 1,047 375,000 80,000 82,615 106,252 106,252 76,081 121,755 199,100 199,100 23,909 60,877 135 120 5,825 2,699 1,266 226 207 177,814 22,539 1,642,819 2,074,173 09/30/2012

Total 12/31/2011 73,948 (54,533) 51,105 (38,231) 15,779 3,486 460 94,135 85,860 232,009 2,033 461,352 83,158 228,185 158,722 158,787 98,465 100,007 170,029 170,068 51,613 339 770 372 1,910 4,529 516 377 38,835 167,080 28,766 246 134 1,926,293 2,158,302

Principal 6,718 244 6,962 608 75,000 82,615 29,651 29,651 12,680 11,083 18,125 18,125 2,657 4,227 40 35 1,330 1,117 669 111 101 1,222 289,047 296,009

Charges 2,246 421 505 1 394 1,616 528 5,711 9 44,161 487 559 383 428 141 339 584 657 68 106 10 5 1 1 4,177 189 246 65 52,616 58,327

81,276 (62,030) 55,565 (43,465) 13,941 245 101,924 92,983 203,588 444,027 1,664 494,161 80,487 165,789 136,286 136,331 88,902 133,177 217,809 217,882 26,634 65,104 175 155 7,261 3,826 1,940 338 309 181,991 23,950 246 65 1,984,482 2,428,509

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The statement below summarizes the contractual terms and conditions applicable to our loans and financings as of September 30th, 2012:
Principal Amortization Financing Entity TN - Par Bond TN - Surety - Par Bond TN - Discount Bond TN - Surety - Discount Bond TN - C. Bond TN - Bib Merril Lynch BNP Citibank Eletrobrs CCB Bradesco Working capital - Santander BNDES - FINEM BNDES - FINEM direct BNDES - FINEM + 1 BNDES - FINEM direct PSI BNDES - Capex 11/12 Subcredit 2 BNDES - Capex 11/12 Subcredit 3 BNDES - Capex 11/12 Subcredit 4 BNDES - Capex 11/12 L.Energia BNDES - Light Energia BNDES - PROESCO 1 funding BNDES - PROESCO 2 funding BNDES - PROESCO 3 funding BNDES - PROESCO 4 funding BNDES - PROESCO 5 funding BNDES - PROESCO 6 funding BNDES - PROESCO 7 funding Renova Energia - BNDES TJLP+1.92% Renova Energia - BNDES TJLP+2.18% Renova Energia - Banco do Nordeste
th th th th rd nd st

Date of signature 04/29/1996 04/29/1996 04/29/1996 04/29/1996 04/29/1996 04/26/1996 11/7/2011 10/17/2011 8/23/2012 Sundry 10/18/2007 09/03/2010 11/05/2007 11/30/2009 11/30/2009 11/30/2009 12/06/2011 12/06/2011 12/06/2011 04/10/2012 09/27/2011 09/16/2008 04/17/2009 04/12/2010 09/15/2010 11/16/2010 7/29/2011 09/27/2011 05/05/2011 05/05/2011 06/30/2006

Currency US$ US$ US$ US$ US$ US$ US$ EURO US$ UFIR CDI CDI TJLP TJLP TJLP R$ TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP TJLP R$

Interest Rate p.a. 6% U$ Treasury Libor + 13/16 U$ Treasury 8% 6% Libor+2.5294% 4% Libor+1.66% 5% CDI + 0.85% CDI + 1.4% TJLP + 4.3% TJLP + 2.58% TJLP + 1% + 2.58% 4.5% TJLP + 1.81% TJLP + 2.21% TJLP + 3.21% TJLP + 1.81% TJLP + 1.97% TJLP + 2.5% TJLP + 2.51% TJLP + 2.18% and 4.5% TJLP + 2.05% and 5.5% TJLP + 2.05% and 5.5% TJLP + 1.81% TJLP + 1.81% TJLP + 1.92% TJLP + 2.18% 8.08% to 9.5%

Beginning 2024 2024 2024 2024 2004 1999 2014 2014 2017 1988 2012 2014 2009 2011 2011 2011 2013 2013 2013 2013 2012 2009 2009 2010 2010 2011 2012 2012 2013 2013 2006

Payment Lump sum Lump sum Lump sum Lump sum Half-yearly Half-yearly Half-yearly Lump sum Half-yearly Monthly and Quarterly Annual Annual Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly

Remaining Installments 1 1 1 1 3 2 6 1 3 39 6 1 24 55 55 85 72 72 72 60 183 27 33 34 43 43 51 51 192 192 165

End 2024 2024 2024 2024 2014 2013 2016 2014 2018 2015 2017 2014 2014 2017 2017 2019 2019 2019 2019 2018 2028 2014 2015 2015 2016 2016 2017 2017 2029 2029 2026

In addition to the collateral indicated above, loans are guaranteed by receivables in the approximate amount of R$75,353 (R$88,609 on December 31st, 2011). Renova Energia S.A.s loans and financing of R$51,117 are collateralized by bank guarantees, mortgages, pledge of shares, the assignment and earmarked revenue of agreements signed with ELETROBRAS. On August 23rd, 2012 funds of R$202,000 were raised for the subsidiary Light SESA through Banco Citibank S.A., for working capital purposes. In July 2012, R$154,566 were withdrawn from BNDES loan, R$128,000 on July 23rd, 2012 for the subsidiary Light SESAs investment program and R$26,566 on July 20th, 2012 for the subsidiary Light Energias investment program, referring to the 2011 and 2012 investment plan. On July 13th, 2012, R$6,692 were released to the subsidiary Light Esco through BNDES loan. The principal of non-current consolidated loans and financing matures as follows (excluding financial charges) on September 30th, 2012:

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Local currency 2013 2014 2015 2016 after 2016 Total 152,688 408,994 266,669 265,344 540,405 1,634,100

Consolidated Foreign currency 3,359 120,616 39,089 36,551 231,739 431,354

Total 156,047 529,610 305,758 301,895 772,144 2,065,454

Changes in consolidated loans and financings:


Principal Balance on December 31, 2011 Loans and borrowings obtained Interest diluted in Renova Monetary restatement Foreign exchange variation Financial charges provisioned Financial charges paid Amortization of financing Funding costs Amortization of costs Capitalized financial charges Charges capitalized to intangible assets/property, plant and equipment Balance on September 30, 2012 2,133,673 411,330 (33,020) (312) 13,369 (164,832) (1,324) 465 2,114 2,361,463 Charges 24,629 (1,836) 120,224 (91,277) (2,114) 17,420 67,046 Total 2,158,302 411,330 (34,856) (312) 13,369 120,224 (91,277) (164,832) (1,324) 465 17,420 2,428,509

Principal Balance on December 31, 2010 Loans and borrowings obtained Acquisition of interest in Renova Energia Foreign exchange variation Financial charges provisioned Financial charges paid Amortization of financing Amortization of costs Balance on September 30, 2011 1,335,183 452,455 210,332 5,520 (99,401) 108 1,904,197

Charges 22,900 122,293 (70,585) 74,608

Total 1,358,083 452,455 210,332 5,520 122,293 (70,585) (99,401) 108 1,978,805

Total principal amount is stated net of funding costs transactions of BNDES, as provided per CVM Rule No. 556/08, which approved the technical pronouncement CPC 08 Transaction Costs and Premium on the Issue of Marketable Securities. The Companys exposure to interest rate, foreign currency and liquidity risks related to loans and financings is reported in Note 31.

73

Covenants Bradescos bank credit certificates, loans with Banco Santander and with BNDES, classified as current and non-current, requires that the Company maintain certain debt ratios and covenants. In the third quarter of 2012, the Company was in conformity with all required debt covenants. 17. DEBENTURES AND FINANCIAL CHARGES
Current Charges 1 10,112 25,145 2,165 7,766 3,986 138 49,313 Consolidated Non-current Principal Total 33 365,445 648,375 470,000 171,194 423,357 30,000 2,108,404 33 365,445 648,375 470,000 171,194 423,357 30,000 2,108,404 Total 09/30/2012 55 603,079 673,520 472,165 178,960 427,343 30,138 2,385,260 12/31/2011 69 744,463 660,217 175,751 423,372 2,003,872

Financing Entity Debentures 4th Issue (Light SESA) Debentures 5th Issue (Light SESA) Debentures 7th Issue (Light SESA) Debentures 8th Issue (Light SESA) Debentures 1st Issue (Light Energia) Debentures 2nd Issue (Light Energia) Debentures 3rd Issue (Light Energia) Total Local Currency

Principal 21 227,522 227,543

Total 22 237,634 25,145 2,165 7,766 3,986 138 276,856

On September 10th, 2012, the 8th issue of non-convertible and unsecured debentures of Light SESA was conducted in a single series, totaling R$470,000, which was the purpose of a private offering. On September 10th, 2012, the 3rd issue of non-convertible and unsecured debentures of Light Energia S.A. was conducted in a single series, totaling R$30,000, which was the purpose of a private offering. Below, contractual conditions of debentures on a consolidated basis as of September 30th, 2012:
Date of signature 06/30/2005 01/22/2007 05/02/2011 08/24/2012 04/10/2011 12/29/2011 08/24/2012 Interest rate p.a TJLP + 4% CDI + 1.50% CDI + 1.35% CDI + 1.18% CDI + 1.45% CDI + 1.18% CDI + 1.18% Principal amortization Remaining Payment installments Monthly Quarterly Annual Annual Annual Annual Annual 33 6 2 12 2 4 12

Financing Entity Debentures 4th Issue (Light SESA) Debentures 5th Issue (Light SESA) Debentures 7th Issue (Light SESA) Debentures 8th Issue (Light SESA) Debentures 1st Issue (Light Energia) Debentures 2nd Issue (Light Energia) Debentures 3rd Issue (Light Energia)

Currency TJLP CDI CDI CDI CDI CDI CDI

Beginning 2009 2012 2015 2015 2015 2016 2015

Expiration 2015 2014 2016 2026 2016 2019 2026

Total principal amount is reported net of debenture issue costs, as provided for in CVM Resolution No. 556/08, which approved the technical pronouncement CPC 08 Transaction Costs and Premium on the Issue of Marketable Securities.

74

Installments related to principal of non-current debentures have the following maturities (excluding financial charges) on September 30th, 2012:

09/30/2012 2013 2014 2015 2016 after 2016 Total


Changes in debentures on a consolidated basis:
Principal Balance on December 31, 2011 Debentures issued Financial charges provisioned Financial charges paid Amortization of debentures Amortization of funding costs Balance on September 30, 2012 1,969,973 500,000 (136,218) 2,192 2,335,947 Charges 33,899 146,286 (130,872) 49,313 Total 2,003,872 500,000 146,286 (130,872) (136,218) 2,192 2,385,260

60,860 304,609 452,490 558,222 732,223 2,108,404

Principal Balance on December 31, 2010 Debentures issued Financial charges provisioned Financial charges paid Amortization of debentures Funding costs Amortization of funding costs Balance on September 30, 2011 1,088,402 822,768 (347,718) (4,472) 3,048 1,562,028

Charges 20,821 136,611 (91,263) 66,169

Total 1,109,223 822,768 136,611 (91,263) (347,718) (4,472) 3,048 1,628,197

Companys exposure to interest rate, foreign currency and liquidity risks related to debentures is reported in Note 31. Covenants The 5th, 7th and 8th issue of Debentures of the subsidiary Light SESA and the 1st, 2nd and 3rd issue of Debentures of the subsidiary Light Energia require the maintenance of 75

indebtedness indexes and coverage of interest rates. In the third quarter of 2012, the Company complied with all the covenants required. 18. REGULATORY CHARGES
CURRENT Fuel usage account quota CCC Energy development account quota CDE Global reversal reserve quota RGR Charges for capacity and emergency acquisition Total Consolidated 09/30/2012 12/31/2011 27,308 21,029 11,638 56,129 116,104 25,472 19,266 11,490 56,128 112,356

19. PROVISIONS The Company is party in tax, labor and civil lawsuits and regulatory proceedings in several courts. Management periodically assesses the risks of contingencies related to these proceedings, and based on its legal counsels opinion, it records a provision when unfavorable decisions are probable and whose amounts are quantifiable. Changes in provisions:
NON-CURRENT Labor Balance on December 31, 2011 Additions Adjustments Write-offs/payments Write-offs/reversals Balance on September 30, 2012 Deposits in courts Balance on September 30, 2012
(*)

Consolidated Civil 163,572 49,940 9,077 (41,590) (144) 180,855 Tax 186,478 9,177 195,655 Other 15,507 12,861 2,736 (8,131) (281) 22,692 Total 515,678 70,016 20,990 (64,151) (18,067) 524,466

150,121 7,215 (14,430) (17,642) 125,264

49,199

9,631

4,375

63,205

* The total amount of R$284,221 is recorded under escrow deposits on September 30th, 2012 (R$268,505 on December 31st, 2011), of which R$63,205 (R$53,982 on December 31st, 2011) refers to claims with recorded provision. Provision for labor proceeding: These labor proceedings mainly involve the following matters: overtime; hazardous work wage premium; equal pay; pain and suffering; subsidiary-joint liability of employees from outsourced companies; difference of 40% fine of FGTS (Government Severance Indemnity Fund for Employees) derived from the adjustment due to understated inflation and occupational accident civil liability.

76

Provision for civil proceedings:


Civil Accrued Value (probable loss) 09/30/2012 Civil proceedings (a) Special civil court (b) "Cruzado" Plan Total 114,156 19,052 47,647 180,855 12/31/2011 101,875 18,035 43,662 163,572

a) The Provision for civil proceedings comprises lawsuits in which the Company and its subsidiaries are defendants and it is probable the claim will result in a loss in the opinion of the respective attorneys. The claims mainly involve alleged moral and property damage due to the Company's ostensive behavior fighting irregularities in the network, as well as consumers challenging the amounts paid. b) Lawsuits in the Special Civil Court are mostly related to matters regarding consumer relations, such as improper collection, undue power cut, power cut due to delinquency, network electric usage problems, various irregularities, bill complaints, meter complaints and problems with ownership transfer. There is a limit of 40 minimum monthly wages for claims under procedural progress at the Special Civil Court. Accruals are based on the average of the last 12 months of condemnation amount. Provision for tax proceedings:

Tax

Accrued Value (probable loss) 09/30/2012 12/31/2011 8,561 42,942 23,876 104,938 6,161 186,478

PIS/COFINS RGR and CCC INSS tax deficiency notice INSS quarterly ICMS (a) Other Total

8,561 44,260 24,743 111,794 6,297 195,655

a) The provision recorded mainly refers to litigation on the application of State Law n 3,188/99, which restricted the appropriation of ICMS credits incurred on the acquisition of assets destined to fixed assets, requiring that credit occurs by installments, while this restriction was not provided for in the Supplementary Law n 87/96. This provision is yearly adjusted in January by UFIR (Fiscal Reference Unit). 77

Administrative Regulatory Provisions and Others: The Company will now discuss regulatory contingencies of its subsidiaries in connection with administrative issues pending with Aneel: Deficiency Notice Aneel No. 082/2010-SFE This deficiency notice was issued on June 18th, 2010, was imposed in the amount of R$16,052 under the allegation that the subsidiary Light SESA would have failed to comply with continuity metrics DEC and FEC for 65 groups during 2009. The incident occurred on November 10th, 2009 (the Furnas Blackout) and was taken into consideration to calculate relevant metrics. Light SESA filed a deficiency notice on July 8th, 2010, and pleaded to reduce penalty so that the shortage occurred on November 10th, 2009 is not considered for the purposes of calculating DEC and FEC metrics. According to the Order No. 2049, published by the Federal Official Gazette (DOU) on July 2nd, 2012, the Managing Officer of Aneel, resolved to: (i) take cognizance and grant partial relief to the appeal filed by subsidiary Light SESA and (ii) amend the Order no. 1285, dated April 19th, 2012, to define the fine at R$4,773 (thus reducing the initial amount of R$16,053). A provision of R$4,110 had already been recorded. The fine, duly adjusted, was paid on July 4th, 2012. Deficiency Notice Aneel No. 071/2011 - SFE This deficiency notice was issued on November 30th, 2011 under the argument that any failure to comply with Module 8 PRODIST (Procedures for the Distribution of Electric Power at the National Electric System), more specifically referring to the process of data collection and calculation of individual and collective continuity indicators, as well as financial indemnity owed to consumers whose individual continuity indicators were infringed. Aneel applied a fine in the relevant amount of R$17,719. Subsidiary Light SESA filed an appeal on February 6th, 2012, in view of excessive penalty applied, contesting among the facts, lack of reasoning and proportionality of dosimetry applied when calculating the fine. In view of excessive penalty applied and the chances of partial success of appeal filed, Light SESA accrued R$5,533, through report of its legal counsels and awaits decision of Aneel. Deficiency Notice ANEEL No. 102/2012-SFE (proceeding 48500.005091/201126). The Deficiency Notice was received by the subsidiary Light SESA on June 28th, 2012, under the allegation of non-compliance detected by Aneel in August 2011 through an inspection of the subsidiary's underground network. The fine is R$7,438. The appeal was sent by Light SESA on July 6th, 2012 and is awaiting Aneels judgment. Given the excessive penalty imposed and the chances of partial success of this appeal, the subsidiary accrued R$4.813.

78

20. CONTINGENCIES The Company is party in lawsuits that Management believes that risk of loss are less than probable, based on the opinion of its legal counsels. Therefore, no provision was recorded. Contingencies with possible loss are broken down as follows:
Consolidated Nature Civil Labor Tax Total 09/30/2012 Number of Balance proceedings 179,979 291,668 3,173,900 3,645,547 13,753 1,099 215 15,067 12/31/2011 Number of Balance proceedings 155,476 317,524 2,882,800 3,355,800 13,658 1,166 302 15,126

The main reasons for litigations are listed below: a) Civil Irregularities Subsidiary Light SESA has several lawsuits where irregularities are discussed, arising from commercial losses due to irregular connections, clandestine connections, meters alteration and equipment theft, known in Portuguese as gatos. Most of the litigations are based on the evidence of irregularity and amounts charged by the concessionaire in view of such evidence. The amount currently assessed represented by these claims is R$47,491. Amounts charged and bills Several litigations are currently in progress and discuss amounts charged by the subsidiary Light SESA for services provided, such as demand amounts, consumption amounts, financial charges, rates, insurances, among other. The amount currently assessed represented by these claims is R$32,529. Accidents Subsidiary Light SESA is defendant in lawsuits filed by victims and/or their successors, regarding accidents with Lights electric power grid and/or service provision for several causes. The amount currently assessed represented by these claims is R$25,365. Discontinuance and suspension There are several lawsuits in progress to discuss service discontinuance, whether by fortuitous cases or events of force majeure, or for purposes of intervention in the electrical system, among other reasons, and also service suspension, whether for indebtedness, denied access or meters replacement, among other facts for suspension. The amount currently assessed represented by these claims is R$15,454. Equipment and network Subsidiary Light SESA has litigations due to electronic meters used to measure energy consumption. Litigations address several themes, such as meter functionality, approval by metrological agency, 79

among others and, also, litigations about its network, due to its extension, removal or even financial contribution of the client to install the network. The amount currently assessed represented by these claims is R$8,008. Regarding civil litigations, we point out the lawsuit filed in the first quarter of 2012 by Companhia Siderrgica Nacional - CSN against subsidiary Light SESA, where CSN claims approximately R$100,000 as indemnity for service discontinuance occurred at its Consumer Unit of Volta Redonda. We point out that out of amount claimed, R$88,000 only refer to the service discontinuance occurred on November 10th, 2009, affecting 40% of Brazilian territory and over 90% of Paraguay, which only evidences that causes go beyond Light SESAs scope of operation, as electric power distribution company. Moreover, the ONS report concluded that the origin and causes of this service discontinuance was Furnas responsibility. Thus, the chances of losses in this lawsuit are possible. The amount currently assessed represented by these claims is R$35,531. b) Tax ICMS Commercial Losses (Tax Deficiency Notices Nos. 03326780-8, 04011949-7 and 04.028.752-6) - These refer to tax deficiency notices aiming at collecting ICMS, Government Fund to Combat Poverty - FECP and penalty (from Jan/99 to Dec/2003 and Jan/06 to Dec/10) as Light SESA failed to pay deferred ICMS and FECP in operations preceding the distribution of electric power, i.e., in operations carried out between generation and distribution company, in view of commercial losses. The subsidiary Light SESA objected these tax assessments which are pending judgment. The amount currently assessed represented by these claims on September 30th, 2012 is R$1,227,700. IRRF (withholding income tax over dividends) (Proceedings 16682.721195/2011-02 and 16682.720657/2012-47) In the last quarter of 2011, Light received a tax deficiency notice aiming the collection of withholding income tax (IRRF) over amounts paid by the Company in 2007 as dividends, under the allegation that these derived from no profit, originated from recording of deferred tax assets in the income statement, then, characterized as payments without cause subject to tax levy. In view of absolute regular standing of accounting, corporate and tax procedures adopted, the Company filed objection, which was deemed groundless. The Company filed a Voluntary Appeal, which is pending judgment. On July 6th, 2012, Light received another tax deficiency notice on this matter, now concerning the amounts paid in 2008, against which submitted a statement of discontentment, under the alleged defense of previous deficiency notice. The amount currently assessed represented by first deficiency notice on September 30th 2012 is R$359,800 and R$225,500 for the second deficiency notice. LIR/LOI - IRPJ/CSLL - Subsidiary Light SESA filed writ of mandamus No. 2003.51.01.005514-8 (Proceedings 16682.720216/2010-83, 15374001.757/2008-13 and 16682.721091/2011-90) to challenge an assessment of corporate income tax (IRPJ) and social contribution (CSLL) on income earned by its overseas subsidiaries LIR and LOI since 1996 that was allegedly not offered to taxation, as well as the demand for including equity pickup income in the assessment of the IRPJ and CSLL for calendar years up to 2002 and 80

subsequent years. Light SESA attempted to partially discontinue this writ of mandamus to include the tax debts in the installment payment program created by Law No. 11,941/09, and continuing discussing the assessment in connection with the equity accounting method. However, the tax authority did not accept this partial discontinuance, nor did the competent court. As a result, Light SESA fully discontinued this writ of mandamus, thus, changed the assessment methodology for the IRPJ/CSLL, which had previously been done based on the income, to use the equity method of accounting. The tax authorities disallowed this change and assessed Light SESA in relation to 2005. Light SESA filed a challenge in response to this assessment, which was deemed groundless. The voluntary appeal lodged by Light SESA is pending judgment. Referring to 2004, the tax authorities disregarded the information contained in the DIPJ (corporate income tax return) and based on non-rectified DCTF (Statement of Federal Tax Debts and Credits), sent a letter to collect the taxes. Light SESA filed a writ of mandamus. Nevertheless, as the injunction pleaded was rejected, then the company filed Provisional Remedy Anticipating Tax Foreclosure to post bond with letter of guarantee. Light SESA pleaded the discontinuance of the writ of mandamus and will discuss the merit of the case in the respective tax foreclosure records, through motion to stay execution already filed. In the last quarter of 2011, Light SESA was also assessed in relation to 2006 and 2008 fiscal years, an objection was filed, which was deemed groundless. The Company filed a Voluntary Appeal, which is pending judgment. The amounts involved on September 30th, 2012 are: R$142,200 referring to 2005 tax assessment, referring to the 2006 to 2008 tax assessment is R$192,800 and R$75,100 referring to 2004 lawsuit. Normative Instruction (NI) No. 86 (Proceeding 10707000751/2007-15 - (2003 through 2005) - This deficiency notice was issued to assess a fine on the Company for alleged failure to make electronic filings as required by NI. No. 86/2001, for calendar years 2003 through 2005. The voluntary appeal filed by subsidiary Light SESA was dismissed, upon which a special appeal was filed and also deemed groundless. Motion for clarification of judgment is pending. The amount currently assessed represented by this claim on September 30th, 2012 is R$291,200. Inspection Fee for Occupancy and Permanence in Zones, Routes and Public Areas (TFOP) The subsidiary Light SESA has several lawsuits discussing TFOP, levied by the municipality of Barra Mansa. Light SESA filed motion to dismiss the execution of these lawsuits and at the Federal Supreme Court STF, obtained injunction sentencing the suspension of collections until judgment of Extraordinary Appeal n 640286. The amount currently assessed represented by this claim on September 30th, 2012, is R$179,309. ICMS Rheem (Proceeding E-04/892.090/99) - This is a tax deficiency notice to collect ICMS (State VAT), in view of subsidiary Light SESA's utilization of ICMS accumulated credits of Rheem Embalagens Ltda. to acquire inputs and raw material in the State of Rio de Janeiro. Objection was deemed groundless. Voluntary Appeal was filed which was rejected. Light's appeal is pending judgment. The amount currently assessed represented by this claim on September 30th, 2012 is R$137,900. 81

ICMS on low-income subsidy (Proceedings E-34/059.150/2004 and E04/054.753/2011) - Tax Deficiency Notices drawn up to charge ICMS (State VAT) on amounts of economic subsidy to low-income consumers of electric power arising from Global Reversal Reserve Funding. In the first case, Light SESA's objection was deemed groundless. An appeal was lodged by subsidiary Light SESA with the Taxpayers Council, which decided this appeal shall return to the administrative lower court for due diligence. Currently, the proceeding is under expert examination. In the second case, the Company filed objection, which was deemed groundless. Voluntary Appeal filed is pending judgment. The amount currently assessed represented by first case on September 30th, 2012 is R$85,900 and R$30,700 in the second case. COFINS (Proceeding 10768.020294/99-72) It refers to the Offset Disallowance made by the Company, which applied income tax outstanding balance, calculated in the 1998 calendar year, for the purposes of paying COFINS debts. Objection was filed which was deemed groundless. The Company filed Voluntary Appeal which was accepted. The amount currently assessed represented by this claim on September 30th, 2012 is R$71,700.

Below, we point out lawsuits in progress, whose chances of losses are remote, with relevant amounts under dispute, which, in case of unfavorable decision, may impact the Company: IRRF Interest remitted abroad (Proceeding 18471002113/2004-09) Collection of withholding income tax on interest paid to its subsidiaries LIR and LOI, resulting from securities issued benefited with zero tax rate of withholding income tax. On August 7th, 2012 the Administrative Tax Appeals Council - Carf cancelled the tax deficiency notice, and the amount currently assessed represented by this claim is R$532,400. PASEP/PIS (Proceeding 15374002130/2006-18) It refers to the Offset Disallowance made by the Company of PASEP credits with PIS debts. The Companys objection was deemed groundless. Voluntary Appeal was filed. CARF rendered decision sentencing the case should remand to the lower court to determine the credit in dispute. The amount currently assessed represented by this claim on September 30th, 2012 is R$264,500. IRRF - Disallowance of tax offset - LIR/LOI (Proceeding 10768.002.435/200411) - There is no confirmation from Brazilian Tax Authority regarding the tax offsets related to withholding income tax credits on financial investments and withholding income tax credits on the payment of energy accounts by government bodies, offset due to outstanding balance of Corporate Income Tax in the reference year of 2002. The motion to disagree filed by Light SESA subsidiary was deemed groundless. The voluntary appeal lodged by Light SESA is pending judgment. This lawsuit was assessed by legal counsels as probable loss, however, in view of the favorable decision received in August 2012 referring to the proceeding 18471002113/2004-09, which directly impacts this case, the legal counsels changed the chances of losses to remote. The amount currently assessed represented by this claim on September 30th, 2012 is R$203,300. 82

21. POST-EMPLOYMENT BENEFITS Below, a summary of the Company's liabilities involving pension plan benefits as stated in the Companys balance sheet:
Current Contractual debt with pension fund Supplementary actuarial liabilities CVM 600 Accounts payable - Braslight Other Total 112,837 1,207 114,044 09/30/2012 Non-current 951,980 23,720 975,700 Total 1,064,817 23,720 1,207 1,089,744 Current 70,697 8,865 963 80,525 12/31/2011 Non-current 991,897 23,718 1,015,615 Total 1,062,594 23,718 8,865 963 1,096,140

Below, contractual liabilities breakdown in the period of 2012:


Total Consolidated 1,062,594 (83,404) 85,627 1,064,817 Current 70,697 (83,404) 85,627 39,917 112,837 Non-current 991,897 (39,917) 951,980

Balance on December 31, 2011 Amortizations in the period Restatements in the period Transfer to current Balance on September 30, 2012

22. OTHER PAYABLES


CURRENT Advances from clients Financial compensation for the use of water resources Energy Research Company EPE National Scientific and Technological Development Fund FNDCT Energy Efficiency Program PEE Research and Development Program P&D Public lighting fee Provision for voluntary redundancy Other Total NON-CURRENT Provision for success fees Reversal reserve Use of public asset - UBP Other Total 23,037 69,933 60,469 1,229 154,668 23,161 69,933 60,317 153,411 Parent Company 09/30/2012 12/31/2011 1,854 651 2,505 1,822 666 2,488 Consolidated 09/30/2012 12/31/2011 1,837 3,798 2,199 57,143 22,396 66,881 1,682 48,173 204,109 3,557 4,205 1,124 2,248 51,452 30,139 81,362 2,000 51,067 227,154

23. RELATED-PARTY TRANSACTIONS On September 30th, 2012, Light S.A. pertained to the controlling group Companhia Energtica de Minas Gerais CEMIG, Luce Empreendimentos e Participaes S.A. and Rio Minas Energia Participaes S.A (RME) company controlled by Redentor Energia S.A. Interest in subsidiaries and joint ventures is outlined in the Note 2.

83

Below, a summary of related-party transactions occurred in the period of 2012 and in the year ended 2011:
CONSOLIDATED Groups Balance Sheet Supplier Contracts with the same group (Agreement objectives and characteristics) Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Sale agreement of electric power between Light Energia and CEMIG Strategic agreement Collection of distribution system usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG Strategic agreement Sale agreement of electric power between Lighter and Light Energia Strategic agreement Sale agreement of electric power between Lighter and CEMIG Relationship with a Light S.A. CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) CEMIG (party of the controlling group) Lightger (jointly-owned subsidiary) CEMIG (party of the controlling group) ASSETS 09/30/2012 12/31/2011 LIABILITIES 09/30/2012 12/31/2011 6,201 9,091 REVENUE 09/30/2012 9/30/2011 EXPENSES 09/30/2012 9/30/2011 38,818 49,434

Supplier

135

178

738

964

Supplier

2,225

2,278

10,151

15,222

Supplier

159

213

1,068

1,697

Supplier

1,677

1,701

7,605

11,075

Supplier

12

11

72

95

Supplier

2,435

Supplier

2,270

Strategic agreement Other Receivables/ Loan agreement with Light S.A., which holds Other Payables 51% in Lightger, in order to honor financial commitments related to the implementation of the Pacambi small hydroelectric power plant (PCH) Post-employment Pension Plan benefit Fundao de Seguridade Social (Social Security Foundation) - BRASLIGHT

Lightger (jointly-owned subsidiary)

11,606

227

3,367

BRASLIGHT

1,089,744

1,096,140

85,627

96,399

Below, a summary of agreements executed with related parties:


Groups Balance Sheet Supplier Contracts with the same group (Agreement objectives and characteristics) Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Purchase agreement of electric power between Light SESA and CEMIG Strategic agreement Sale agreement of electric power between Light SESA and CEMIG Strategic agreement Collection of distribution system usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light SESA and CEMIG Strategic agreement Commitment to the basic electric network usage charges between Light Energia and CEMIG Strategic agreement Sale agreement of electric power between Lighter and Light Energia Strategic agreement Sale agreement of electric power between Lighter and CEMIG Strategic agreement Loan agreement with Light S.A., which holds 51% in Lightger, in order to honor financial commitments related to the implementation of the Pacambi small hydroelectric power plant (PCH) Pension Plan Fundao de Seguridade Social (Social Security Foundation) - BRASLIGHT Relationship with Light S.A. CEMIG (Party of the controlling group) CEMIG (Party of the controlling group) CEMIG (Party of the controlling group) CEMIG (Party of the controlling group) CEMIG (Party of the controlling group) CEMIG (Party of the controlling group) Lightger (Jointly-owned subsidiary) CEMIG (Party of the controlling group) Lightger (Jointly-owned subsidiary) Original amount 614,049 Date Maturity date or term Conditions for termination or expiration 30% of remaining balance 30% of remaining balance Remaining balance 09/30/2012 404,462 Agreements conditions Price established in the regulated market Price established in the regulated market

Jan / 2006

Dec / 2038

Supplier

37,600

Jan / 2010

Dec / 2039

40,708

Supplier

156,239

Jan / 2005

Dec / 2013

N/A

40,884

Price established in the regulated market

Supplier

Nov / 2003

Undetermined

N/A

159

Price established in the regulated market

Supplier

Dec / 2002

Undetermined

N/A

1,677

Price established in the regulated market

Supplier

Dec / 2002

Undetermined

N/A

12

Price established in the regulated market

Supplier

217,213

Dec / 2010

Jun / 2028

N/A

214,778

Price established in the regulated market

Supplier

208,818

Dec / 2010

Jun / 2028

N/A

206,548

Price established in the regulated market

Other Receivables/ Other Payables

35,586

Jan/11 to Sep/11

Sep / 2012

N/A

CDI + 0.9% p.a

Post-employment Benefit

BRASLIGHT

535,052

Jun / 2001

Jun / 2026

N/A

1,089,744

IPCA+ 6% p.a

84

The subsidiary Light Energia has a purchase contract of 400 MW of installed power capacity from the portfolio projects of its joint venture Renova Energia S.A.. From the total contracted 200 MW will be made available as of 2015 and 200 MW as of 2016. Related-party transactions were conducted according to the parties agreements. MANAGEMENT REMUNERATION Policy regarding remuneration of the Board of Directors, Executive Board, Fiscal Council and board committees. Pro-rata share of each component to the aggregate remuneration for the nine-month period of 2012.
Board of Directors Fixed Compensation: Board of Executive Officers Fixed Compensation: Variable Compensation: Other: Fiscal Council Fixed Compensation:

100% 49% 41% 10% 100%

Remuneration paid by the Company to the Board of Directors, Executive Board, and Fiscal Council in the nine-month period of 2012:
Consolidated 2012 Number of members (*) Fixed compensation in the six-month period Salary or pro-labore Direct and indirect benefits Variable compensation in the six-month period Bonus Severance pay Total compensation per body Board of Directors 21 931 931 931 Fiscal Council 10 417 417 417 Statutory Board of Executive Offcers 8.33 4,729 3,933 796 3,976 3,976 976 9,681 Total 39.33 6,077 5,281 796 3,976 3,976 976 11,029

Average remuneration due to the Board of Directors, Executive Board, and Fiscal Council in the nine-month period of 2012:
Consolidated 2012 Number of members (*) Highest individual compensation Lowest individual compensation Average individual compensation Board of Directors 21 78 39 44 Fiscal Council 10 62 31 42 Statutory Board of Executive Offcers 8.33 2,347 679 1,162

*number of members calculated through the weighted average in the nine months period. 85

The joint venture Renova Energia has a stock option plan and on September 30th, 2012, the stocks had already been redeemed by the Management of Renova Energia S.A. 24. SHAREHOLDERS' EQUITY a) Capital There are 203,934,060 non-par and book-entry common shares of Light S.A. (203,934,060 on December 31st, 2011) as of September 30th, 2012 recorded as Capital Stock in the total amount of R$2,225,822 (R$2,225,822 on December 31st, 2011), as follows:
09/30/2012 SHAREHOLDERS Controlling Group RME Rio Minas Energia Participaes S.A. Companhia Energtica de Minas Gerais S.A. Luce Empreendimentos e Participaes S.A. Other BNDES Participaes S.A. - BNDESPAR Public Overall Total Number of Shares 106,304,597 26,576,150 53,152,298 26,576,149 97,629,463 27,453,983 70,175,480 203,934,060 % Interest 52.12 13.03 26.06 13.03 47.88 13.46 34.42 100 12/31/2011 Number of Shares 106,304,597 26,576,150 53,152,298 26,576,149 97,629,463 30,631,782 66,997,681 203,934,060 % Interest 52.12 13.03 26.06 13.03 47.88 15.03 32.85 100

Light S.A. is authorized to increase its capital up to the limit of 203,965,072 common shares through resolution of the Board of Directors, regardless of amendments to the bylaws. However, this increase is to occur exclusively upon the exercise of the warrants issued, strictly pursuant to the conditions of the warrants (Bylaws, Article 5, Paragraph 2). On September 21st, 2012, the Board of Directors unanimously approved the payment of interest on own equity to shareholders, in the gross amount of R$71,377 and 15% withholding income tax to be paid by April 30th, 2013. 25. EARNINGS PER SHARE Pursuant to the requirements of CPC 41 and the IAS 33 (Earnings per Share), the statement below reconciles the income for the period with the amounts used to calculate the basic and diluted earnings per share.

86

07.01 to 09.30 NUMERATOR Net income for the year DENOMINATOR Weighted average number of common shares Basic and diluted earnings per common share - R$ 01.01 to 09.30 NUMERATOR Net income for the year DENOMINATOR Weighted average number of common shares Basic and diluted earnings per common share - R$

2012 84,121 203,934,060 0.412 2012 263,955 203,934,060 1.294

2011 (1,600) 203,934,060 -0.008 2011 210,064 203,934,060 1.030

There were no significant differences between the basic and diluted earnings per share as of September 30th, 2012 and 2011.

87

26. NET OPERATING REVENUE


Consolidated July 1 to September 30 Supply to consumers/distributors (Note 27) Leases, rentals and other Revenue from network usage Revenue from construction Revenue from services rendered Taxed service fee GROSS REVENUE ICMS PIS / COFINS Other REVENUE TAXES 2012 2,203,841 25,229 200,619 170,319 28,078 1,126 2,629,212 (541,953) (134,748) (1,661) (678,362) 2011 2,019,884 16,293 166,272 230,619 10,409 1,198 2,444,675 (504,783) (121,521) (1,115) (627,419)

Fuel Consumption Account - CCC Energy Development Account - CDE Global Reversal Reserve - RGR Energy Research Company - EPE National Technological Development Fund - FNDCT Energy Efficiency Program - PEE Research and Development -R&D Other charges - ex-isolated Other charges - Proinfa CONSUMER CHARGES TOTAL DEDUCTIONS NET REVENUE

(81,924) (63,087) (35,097) (1,561) (3,124) (6,842) (3,124) (4,106) (3,989) (202,854) (881,216) 1,747,996

(76,416) (57,798) (3,519) (1,506) (3,014) (6,717) (3,014) (4,030) (4,149) (160,163) (787,582) 1,657,093

88

Consolidated January 1 to September 30 Supply to consumers/distributors (Note 27) Leases, rentals and other Revenue from network usage Revenue from construction Revenue from services rendered Taxed service fee GROSS REVENUE ICMS PIS / COFINS Other REVENUE TAXES 2012 7,065,451 50,261 594,361 469,990 72,966 3,181 8,256,210 (1,755,632) (433,802) (4,131) (2,193,565) 2011 6,554,852 22,868 533,303 556,886 56,329 2,792 7,727,030 (1,704,436) (405,129) (2,894) (2,112,459)

Fuel Consumption Account - CCC Energy Development Account - CDE Global Reversal Reserve - RGR Energy Research Company - EPE National Technological Development Fund - FNDCT Energy Efficiency Program - PEE Research and Development -R&D Other charges - ex-isolated Other charges - Proinfa CONSUMER CHARGES TOTAL DEDUCTIONS NET REVENUE

(247,608) (189,261) (105,291) (4,981) (9,967) (21,870) (9,967) (13,122) (10,399) (612,466) (2,806,031) 5,450,179

(229,248) (173,394) (10,557) (4,798) (9,600) (21,560) (9,599) (12,935) (13,186) (484,877) (2,597,336) 5,129,694

89

27. REVENUE FROM ELETRIC ENERGY OPERATIONS

Consolidated July 1 to September 30 Residential Industrial Commerce, services and other Rural Public sector Public lighting Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY
(3)

Number of billed sales 2012 2011 3,665,098 10,541 310,100 11,473 11,417 730 1,595 443 4,011,397 4,011,397 4,011,397

(1) (2)

GWh 2012 1,801 370 1,627 13 359 176 279 21 4,646 4,646 1,220 157 1,377 6,023

(1)

R$ 2011 1,882 427 1,440 13 334 167 276 20 4,559 4,559 1,200 568 1,768 6,327 2012 663,894 94,891 524,456 1,223 127,600 29,111 63,365 1,504,540 532,243 3,994 2,040,777 147,115 15,949 163,064 2,203,841 2011 629,873 98,887 444,065 2,609 110,458 25,722 58,566 1,370,180 497,886 17,799 1,885,865 119,629 14,390 134,019 2,019,884

3,804,524 11,064 277,714 11,292 10,647 732 1,361 390 4,117,724 4,117,724 4,117,724

Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL

Consolidated January 1 to September 30 Residential Industrial Commerce, services and other Rural Public sector Public lighting Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY
(3)

Number of billed sales 2012 2011 3,665,098 10,541 310,100 11,473 11,417 730 1,595 443 4,011,397 4,011,397 4,011,397

(1) (2)

GWh 2012 6,117 1,144 5,061 39 1,163 511 840 65 14,940 14,940 3,575 814 4,389 19,329

(1)

R$ 2011 6,411 1,279 4,724 40 1,123 508 824 63 14,972 14,972 3,550 1,045 4,595 19,567 2012 2,247,939 270,017 1,634,995 7,118 401,309 85,047 183,212 4,829,637 1,728,694 7,428 6,565,759 427,363 72,329 499,692 7,065,451 2011 2,163,562 292,467 1,430,843 8,144 362,008 78,704 171,192 4,506,920 1,684,426 (15,274) 6,176,072 345,422 33,358 378,780 6,554,852

3,804,524 11,064 277,714 11,292 10,647 732 1,361 390 4,117,724 4,117,724 4,117,724

Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL

(1) Unaudited by independent auditors (2) Number of billed sales in September 2012, with and without consumption (3) Light SESA

90

28. OPERATING COSTS AND EXPENSES


July 1 to September 30 Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 29) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Cost of construction Other Total Cost of Service Electric Power (1,033,538) (1,033,538) Operation (49,930) (6,411) (45,790) (77,627) (170,319) (5,540) (355,617) Selling (5,235) (510) (23,416) (290) (39,310) (325) (69,086) Consolidated Operating Expenses General and Adm (23,675) (900) (35,937) (9,996) (14,002) (23,696) (108,206) Other Operating Revenues (Expenses) 16,402 16,402 2012 (78,840) (7,821) (105,143) (1,033,538) (87,913) (39,310) (14,002) (170,319) (13,159) (1,550,045) 2011 (60,720) (5,853) (91,729) (923,272) (94,735) (72,157) (11,270) (230,619) (22,717) (1,513,072)

January 1 to September 30 Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 29) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Cost of construction Other Total

Cost of Service Electric Power (3,167,463) (3,167,463) Operation (140,479) (13,689) (132,947) (230,102) (469,990) (16,029) (1,003,236) Selling (14,729) (1,090) (67,985) (860) (173,165) (941) (258,770)

Consolidated Operating Expenses General and Adm (66,612) (1,921) (104,342) (29,629) (51,180) (68,563) (322,247) Other Operating Revenues (Expenses) 14,167 14,167 2012 (221,820) (16,700) (305,274) (3,167,463) (260,591) (173,165) (51,180) (469,990) (71,366) (4,737,549) 2011 (198,350) (18,235) (303,785) (2,817,571) (277,949) (216,039) (27,965) (556,886) (76,722) (4,493,502)

91

29. ELECTRIC POWER PURCHASED FOR RESALE


Consolidated GWh July 1 to September 30 Connection charges Spot market energy Network usage charges UTE Norte Fluminense Itaipu - binational Energy transportation - Itaipu National Electric System Operator (O.N.S.) PROINFA ESS Other contracts and electric power auctions Backup power Total (1) Unaudited by independent auditors Consolidated GWh January 1 to September 30 Connection charges Spot market energy Network usage charges UTE Norte Fluminense Itaipu - binational Energy transportation - Itaipu National Electric System Operator (O.N.S.) PROINFA ESS Other contracts and electric power auctions Backup power Total (1) Unaudited by independent auditors 2012 359 4,768 4,010 390 12,213 21,740
(1) (1)

R$ 2011 1,601 1,363 140 3,743 6,847 2012 (7,446) 487 (118,303) (237,767) (144,876) (12,529) (4,580) (28,350) (21,414) (435,107) (23,653) (1,033,538) 2011 (6,936) (62) (119,044) (218,574) (131,359) (11,623) (3,845) (22,308) (32,595) (368,280) (8,646) (923,272)

2012 1,601 1,356 137 3,619 6,713

R$ 2011 776 4,751 4,028 373 12,008 21,936 2012 (22,353) (37,586) (355,152) (708,340) (418,991) (35,516) (14,948) (86,621) (67,406) (1,376,091) (44,459) (3,167,463) 2011 (21,042) (27,133) (328,013) (648,708) (360,808) (33,203) (12,767) (66,187) (103,355) (1,204,796) (11,559) (2,817,571)

92

30. FINANCIAL RESULT

Consolidated July 1 to September 30 REVENUES Default charges on electricity bills and debts paid by installments Income from investments Swap operations Other financial income EXPENSES Restatement of provision for contingencies Expenses with tax liabilities Debt charges Foreign exchange variation Swap operations Advance payment of accounts receivable Other financial expenses (5,122) (4,536) (114,522) 2,567 (5,952) (3,357) (18,548) (149,470) FINANCIAL RESULT (116,581) (3,314) (12,044) (123,291) (8,925) (24,951) (8,318) (180,843) (143,952) 13,098 16,714 3,077 32,889 16,088 12,200 4,348 4,255 36,891 2012 2011

Consolidated January 1 to September 30 REVENUES Default charges on electricity bills and debts paid by installments Income from investments Swap operations Other financial income EXPENSES Restatement of provision for contingencies Expenses with tax liabilities Debt charges Exchange variation Advance payment of accounts receivable Other financial expenses (20,990) (13,786) (354,707) (13,368) (34,270) (54,715) (491,836) FINANCIAL RESULT (363,171) (22,282) (34,598) (351,697) (5,522) (24,951) (18,432) (457,482) (329,426) 58,852 36,619 11,648 21,546 128,665 71,530 39,235 1,123 16,168 128,056 2012 2011

93

31. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The statement below reconciles the carrying and fair values of assets and liabilities related to our financial instruments:
Parent Company 9/30/2012 12/31/2011 Book value Fair Value Book value Fair Value 15,594 149 184,375 6,002 206,120 15,594 149 184,375 6,002 206,120 55,057 150 78,510 13,763 147,480 55,057 150 78,510 13,763 147,480

ASSETS Cash and cash equivalents (Note 4) Services receivable Dividends receivable Other receivables (Note 11) Total LIABILITIES Suppliers (Note 15) Dividends and interest on own equity payable Other payables (Note 22) Total

106 242,172 2,505 244,783

106 242,172 2,505 244,783

197 73,741 2,488 76,426

197 73,741 2,488 76,426

ASSETS Cash and cash equivalents (Note 4) Marketable Securities (Note 5) Concessionaires and permissionaires (Note 6) Services receivable Swaps Concession financial assets (Note 10) Other receivables (Note 11) Total LIABILITIES Suppliers (Note 15) Loans and Borrowings (Note 16) Debentures (Note 17) Dividends and interest on own equity payable Swaps Other payables (Note 22) Total

Consolidated 9/30/2012 12/31/2011 Book value Fair Value Book value Fair Value 1,176,675 15,488 1,598,895 125,735 28,038 937,420 190,732 4,072,983 1,176,675 15,488 1,598,895 125,735 28,038 937,420 190,732 4,072,983 772,548 8,171 1,682,158 84,964 4,555 656,473 181,529 3,390,398 772,548 8,171 1,682,158 84,964 4,555 656,473 181,529 3,390,398

737,847 2,428,509 2,385,260 242,172 5,134 358,777 6,157,699

737,847 2,451,362 2,383,581 242,172 5,134 358,777 6,178,873

757,158 2,158,302 2,003,872 73,741 1,763 380,565 5,375,401

757,158 2,099,079 2,004,259 73,741 1,763 380,565 5,316,565

In compliance with CVM Rule No. 475/2008 and CVM Resolution No. 604/2009, which revoked Resolution No. 566/2008, the description of accounting balances and fair values of financial instruments stated in the balance sheet as of September 30th, 2012 are identified as follows: Cash and cash equivalents Cash equivalents are represented by short-term investments in bank deposit certificates are measured at their fair value duly on the balance sheet date. Short-term investments Represented by bank deposit certificates are measured at their fair value on the balance sheet date. 94

Consumers, concessionaries and permissionaires and clients These are classified as loans and receivables, measured at the amortized cost, being recorded at their original values and subject to a provision for losses and adjustments to their present values, where applicable.

Financial concession assets These are classified as loans and receivables, measured at the amortized cost, being recorded at their original values and subject to a provision for losses, where applicable.

Suppliers Accounts payable to suppliers of materials and services required in the operations of the Company, the amounts of which are known or easily determinable, added, where applicable, of relevant charges, escalation and/or exchange costs incurred as of the balance sheet date. These balances are classified as financial liability not measured at fair value and were recognized at their amortized cost, which is not significantly different from their fair value.

Loans, financings and debentures These are measured by the amortized cost method. Fair value was calculated at interest rates applicable to instruments with similar nature, maturities and risks, or based on market quotations of these securities. The fair value for BNDES financing is identical to the accounting balance, since there are no similar instruments, with comparable maturities and interest rates. These financial instruments are classified as financial liabilities not measured at the fair value.

Other assets and liabilities Other assets are classified as "loans and receivables", and other liabilities are measured at amortized cost and stated at their original values, accrued of, where applicable, corresponding charges, monetary and/or currency variations incurred up to the balance sheet date or subject to a provision for losses, where applicable.

Swaps These are measured at fair value. A determination of fair value used available information on the market and usual pricing methodology: the face value (notional) evaluation for long position (in U.S. dollars) until maturity date and discounted at present value of clean coupon rates, published in bulletins of Securities, Commodities and Futures Exchange BM&FBovespa. The estimated fair value of financial assets and liabilities was determined by means of information available on the market and appropriate valuation methodologies. Nevertheless, meaningful judgment was required when interpreting market data to produce the most appropriate fair value estimate. As a result, estimates used and presented below do not necessarily indicate the amounts that may be realized in current exchange market. 95

a) Financial Instruments by category:


Parent Company 09/30/2012 Loans and receivables 36 149 184,375 6,002 190,562 Fair value though profit and loss 15,558 15,558 Loans and receivables 43,668 1,598,895 125,735 937,420 190,732 2,896,450 Consolidated 09/30/2012 Fair value though profit and loss 1,133,007 15,488 28,038 1,176,533

ASSETS Cash and cash equivalents (Note 4) Marketable securities (Note 5) Concessionaires and permissionaires (Note 6) Services provided receivable Dividends receivable Swaps Concession financial assets (Note 10) Other receivables (Note 11) Total

Total 15,594 149 184,375 6,002 206,120

Total 1,176,675 15,488 1,598,895 125,735 28,038 937,420 190,732 4,072,983

LIABILITIES Suppliers (Note 15) Loans and Borrowings (Note 16) Debentures (Note 17) Dividends and interest on equity payable Swaps Other payables (Note 22) Total

Amortized cost 106 242,172 2,505 244,783

Fair value though profit and loss -

Total 106 242,172 2,505 244,783

Amortized cost 737,847 2,361,463 2,335,947 242,172 358,777 6,036,206

Fair value though profit and loss 5,134 5,134

Total 737,847 2,361,463 2,335,947 242,172 5,134 358,777 6,041,340

b) Policy concerning derivative instruments The Company has a policy of using derivative instruments which has been approved by its Board of Directors. According to this policy, the debt service (principal plus interest and charges) denominated in foreign currency maturing within 24 months is to be hedged, except no speculative transaction is allowed, whether using derivatives or any other risky asset. In line with the policy standards, the Company does not have any options, swap options, callable swaps, flexible options, derivatives embedded in other products, derivativestructured transactions and so-called exotic derivatives. Furthermore, the statement above denotes that the Company use cashless exchange rate swaps (US$ vs. CDI), of which the Notional Contract Value is equal to the amount of the debt service denominated in foreign currency maturing in 24 months. c) Risk management and goals achieved Management of derivative instruments is achieved through operating strategies with a view to liquidity, profitability and safety. Our control policy consists of ongoing enforcement of policy standards concerning the use of derivative instruments, as well as continued monitoring of agreed upon rates versus market rates.

d) Market Risk 96

During the normal course of its businesses, the Company and its subsidiaries are exposed to the market risks related to currency variations and interest rates, as evidenced in the chart below: Debt breakdown (excluding financial charges):
Consolidated 9/30/2012 R$ USD EUR Foreign currency (current and non-current) CDI TJLP Other Local currency (current and non-current) Overall total (current and non-current) 346,949 91,367 438,316 2,865,893 1,279,024 114,177 4,259,094 4,697,410 % 7.4 1.9 9.3 61.1 27.2 2.4 90.7 100.0 R$ 144,412 85,191 229,603 2,538,473 1,206,499 129,071 3,874,043 4,103,646 12/31/2011 % 3.5 2.1 5.6 61.9 29.4 3.1 94.4 100.0

On September 30th, 2012, according to the chart above, the foreign currencydenominated debt is R$438,316, or 9.3% of total debt (R$229,603, corresponding to 5.6% on December 31st, 2011). Financial derivative instruments were contracted for the amount of foreign currencydenominated debt service to expire within 24 months, in the swap modality, whose notional value on September 30th, 2012 stood at US$162,078 (US$66,804 on December 31st, 2011) and 34,969 (34,969 on December 31st, 2011), according to the policy for utilization of derivative instruments approved by the Board of Directors. Thus, if we deduct this amount from total foreign currency-denominated debt, the foreign exchange exposure represents 0.38% of total debt (0.57% on December 31st, 2011). Below, is provided a few considerations and analyses on risk factors impacting on business of Light Groups companies: Exchange rate risk Considering that a portion of the subsidiary Light SESAs loans and financings are denominated in foreign currency, the company uses derivative financial instruments (swap operations) to hedge against service associated with these debts (principal plus interest and commissions) to expire within 24 months in addition to the swap of previously mentioned rates.

97

Derivative operations, comprising currency swaps and interest, the latter reported below, resulted in an R$5,908 gain in the third quarter of 2012 (gain of R$4,348 in the third quarter of 2011). The net amount of swap operations as of September 30th, 2012, considering the fair value, is positive at R$22,904 (positive at R$2,792 on December 31st, 2011), as shown below:
Currency Sw ap Notional Value Contracted (US$ thousand) 61 2,597 2,970 3,211 3,064 58 33,333 33,333 33,333 50,000 118 14,129 Fair Value Sep/12 (R$) Assets 11 454 368 246 1,028 16 Fair Value Sep/12 (R$) Liabilities (1,193) (1,652) (2,284) (5) Fair Value Sep/12 (R$) Balance 11 454 368 246 1,028 16 (1,193) (1,652) (2,284) 14,129 (5) Institution Light's Receivable Light's Payable Starting Date Maturity Date

Bradesco Ita Ita HSBC HSBC HSBC Citibank Citibank Citibank Bank of America Citibank

US$+2.72% US$+2.42% US$+3.07% US$+2.20% US$+3.58% US$+2.95%

100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI

03/10/2011 04/11/2012 12/28/2011 10/11/2010 04/12/2011 09/12/2011 08/23/2012 08/23/2012 08/23/2012 11/10/2011 05/31/2012

03/12/2013 04/11/2014 10/10/2013 10/09/2012 04/10/2013 09/12/2013 02/23/2017 08/23/2017 02/23/2018 11/10/2016 10/30/2012

US$+Libor+1.66% 100% CDI + 1.00% US$+Libor+1.66% 100% CDI + 1.00% US$+Libor+1.66% 100% CDI + 1.00% Libor+2.5294% US$ / 2.078 100%CDI + 0.65% US$ - Maturity

Institution

Light's Receivable

Light's Payable

Starting Date Maturity Date

Notional Value Contracted (EURO 31,491 865 175 175 2,263 197,047

Fair Value Sep/12 (R$) Assets 7,874 39 8 7 104 24,284

Fair Value Sep/12 (R$) Liabilities (5,134)

Fair Value Sep/12 (R$) Balances 7,874 39 8 7 104 19,150

BNP Citibank Citibank Citibank Ita

Euro+4.6823% Euro / 2.4824 Euro / 2.4822 Euro / 2.4836 Euro / 2.4915

100%CDI+1.30% Euro - Maturity Euro - Maturity Euro - Maturity Euro - Maturity

10/21/2011 05/31/2012 05/31/2012 05/31/2012 05/31/2012

10/21/2014 01/29/2013 04/29/2013 05/27/2013 05/31/2013 Total

Currency Sw ap Notional Value Contracted (US$ thousand) 5,273 64 5,010 63 3,211 61 3,064 58 50,000 2 6 693 9 3,609 Fair Value Fair Value Fair Value Dec/11 Dec/11 Dec/11 (R$) (R$) Assets (R$) Liabilities Balances 46 (11) (773) (3) 46 (11) (773) (3) 2 6 693 9 3,609

Institution

Light's Receivable

Light's Payable

Starting Date Maturity Date

Banco Itau Citibank Banco Itau Bradesco HSBC Bradesco HSBC HSBC Merilin Lynch

US$+2.79% US$+3.20% US$+2.82% US$+2.50% US$+2.20% US$+2.72% US$+3.58% US$+2.95% Libor+2.5294%

100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100% CDI 100%CDI+0.65%

10/9/2009 03/10/2010 04/12/2010 09/10/2010 10/11/2010 03/10/2011 04/12/2011 09/12/2011 11/10/2011

10/11/2011 03/12/2012 04/10/2014 09/12/2012 10/09/2012 03/12/2013 04/10/2013 09/12/2013 11/10/2016

Institution

Light's Receivable

Light's Payable

Starting Date Maturity Date

BNP

Euro+4.6823%

100%CDI+1.30%

10/21/2011

10/21/2014 Total

Notional Value Contracted (EURO thousand) 34,969 101,773

Fair Value Fair Value Fair Value Dec/11 Dec/11 Dec/11 (R$) (R$) Assets (R$) Liabilities Balances 4,365 (976) (1,763) (976) 2,602

The amount recorded was measured by its fair value on September 30th, 2012. All operations with derivative financial instruments are registered in clearing houses for the custody and financial settlement of securities and there is no margin deposited in guarantee. Operations have no initial cost.

98

The subsidiary Light Esco contracted derivative instruments, as forward currency agreements to hedge against fluctuations in foreign currency-denominated payments to suppliers, with the notional amounts of US$589 and 4,876, duly approved by the Board of Directors. Below, the sensitivity analysis for foreign exchange rates fluctuations, showing eventual impacts on financial result of the Company and its subsidiaries. The methodology used in the Probable Scenario considered the foreign exchange rate on September 30th, 2013. It is worth highlighting that, as this refers to a sensitivity analysis of the impact on the financial result for the next 12 months, debt balances on September 30th, 2012 were considered. It is worth mentioning that the behavior of debt and derivatives balances will observe their respective contracts, and the balance of temporary cash investments will fluctuate according to the need or available funds of the Company and its subsidiaries. Exchange Rate Sensitivity Analysis:
R$ Operation FINANCIAL LIABILITIES Par Bond Discount Bond C. Bond Bib Merril Lynch BNP (EURO) Citibank DERIVATIVES Swaps TOTAL Reference for financial assets and liabilities R$/US$ exchange rate (end of the period) R$/EURO exchange rate (end of the period) 2.0000 2.6000 USD USD USD USD USD EURO USD USD / EURO 27,120 16,722 127,399 (21,551) +25% 2.5000 3.2500 234,434 (53,068) +50% 3.0000 3.9000 Risk Scenario (I): Probable (10,398) (3,479) 118 (856) (11) (1,064) (3,240) (1,866) Scenario (II) (148,950) (24,107) (13,638) (4,429) (75) (26,712) (26,892) (53,097) Scenario (III) 287,502 (44,734) (27,395) (8,002) (138) (52,361) (50,543) (104,329)

With the chart above, it is possible to identify that the partial hedge against foreign currency-denominated debt (only limited to debt service to expire within 24 months), as when R$/US$ quote increases, liabilities financial expense also increases but financial income of derivatives also partially offset this negative impact and vice-versa. Thus, cash is partially hedged thanks to the derivatives policy of the Company. Interest rate risk This risk derives from impact of interest rates fluctuation not only over financial expense associated with loans and borrowings of the Company, but also over financial income deriving from temporary cash investments. The policy for utilization of derivatives approved by the Board of Directors does not comprise the contracting of instruments against such risk. Nevertheless, the Company continuously monitors interest rates so that to evaluate eventual need of contracting derivatives to hedge against interest rates volatility risk. 99

As at September 30th, 2012, the interest rate swap operation associated with the maturity of Bradesco CCB with notional value of R$150,000 (R$150,000 on December 31st, 2011), duly authorized by the Management, stated a gain of R$3,754 (R$190 on December 31st, 2011), considering the fair value, according to the following table:
Interest rate sw ap Notional Value Contracted (R$ thousand) 150,000 Fair Value Sep/12 (R$) Assets 3,754 Fair Value Sep/12 (R$) Liabilities Fair Value Sep/12 (R$) Balance 3,754

Institution

Light's Receivable

Light's Payable

Starting Date Maturity Date

HSBC

101.9%CDI+(TJLPCDI+0.85% 6%)

10/11/2010

10/9/2012

Total

150,000

3,754

3,754

Interest rate sw ap Notional Value Contracted (EURO thousand) 150,000 Fair Value Fair Value Fair Value Dec/11 Dec/11 Dec/11 (R$) (R$) Assets (R$) Liabilities Balances 190 190

Institution

Light's Receivable

Light's Payable

Starting Date Maturity Date

HSBC

101.9%CDI+(TJLPCDI+0.85% 6%)

10/11/2010

10/9/2012

Total

150,000

190

190

Below, the sensitivity analysis for interest rates fluctuations, showing possible impacts on the financial result of the Company. The methodology used in the Probable Scenario considered the foreign exchange rate on September 30th, 2013. It is worth highlighting that, as this refers to a sensitivity analysis of the impact on the 2012 financial result, debt and investment balances on September 30th, 2012 were considered. It is worth mentioning that the behavior of debt and derivatives balances will observe their respective contracts, and the balance of investments will fluctuate according to the need or available funds of the Company.

100

Risk of Interest Rate Increase:


R$ Operation FINANCIAL ASSETS Temporary cash investments FINANCIAL LIABILITIES Debentures 4th issue Debentures 5th issue Debentures 7th issue Debentures 8th issue CCB Bradesco CCB Bco Santander FINEM BNDES 2006-2008 FINEM BNDES 2009-2010 FINEM BNDES 2009-2010 TJLP+1 PROESCO Debentures 1st issue Light Energia Debentures 2nd issue Light Energia Debentures 3rd issue Light Energia BNDES Light Ger BNDES - Capex 11/12 Subcred.2 BNDES - Capex 11/12 Subcred.3 BNDES - Capex 11/12 Subcred.4 DERIVATIVES Currency swaps Interest rate swaps Interest rate swaps TOTAL Reference for FINANCIAL ASSETS CDI (% end of the period) Reference for FINANCIAL LIABILITIES CDI (% end of the period) TJLP (% end of the period) CDI CDI TJLP 27,120 12,589 12,589 (212,703) (10,961) 12,753 10,446 (302,124) +25% 9.84% +25% 9.84% 6.88% (44,418) 12,914 8,303 (386,925) +50% 11.81% +50% 11.81% 8.25% TJLP CDI CDI CDI CDI CDI TJLP TJLP TJLP TJLP CDI CDI CDI TJLP TJLP TJLP TJLP CDI 92,662 (357,663) (7) (56,238) (60,460) (42,793) (39,440) (7,473) (16,777) (11,325) (12,780) (1,061) (16,140) (38,696) (2,732) (4,990) (9,969) (17,230) (19,552) 115,823 (430,185) (7) (68,076) (73,386) (52,111) (48,333) (9,062) (19,175) (13,269) (14,742) (1,258) (19,555) (47,121) (3,326) (5,915) (11,851) (20,323) (22,675) 138,982 (502,706) (8) (79,912) (86,313) (61,428) (57,226) (10,652) (21,572) (15,212) (16,704) (1,455) (22,969) (55,547) (3,921) (6,838) (13,735) (23,415) (25,799) Risk Scenario (I): Probable Scenario (II) Scenario (III)

7.87% 7.87% 5.50%

Credit risk It refers to the Company eventually suffering losses deriving from default of counterparties or financial institutions depositary of funds or temporary cash investments. To mitigate these risks, the Company uses all collection tools allowed by the regulatory body, such as disconnection for delinquency, debit losses and permanent monitoring and negotiation of outstanding positions. Item "a" of this note contains a summary of the financial instruments broken down by category, including the Company's maximum credit risk. Concerning financial institutions, the Company only carries out low-risk operations, classified by rating agencies. The Company has a policy of not concentrating its portfolio in certain financial institution. Therefore, the policys principle is to control the portfolio concentration through limits imposed to the Groups and monitoring financial institutions through their shareholders equity and ratings. 101

Through its policy, the Company will be able to invest in fixed income products and Interbank Deposit Rate (CDI)-indexed floating income and floating government bonds. The definition of the groups for allocation of resources is described below, as well as the percentage of current share in the Companys portfolio: Group 1 federal banks; shareholders equity: not applicable; minimum rating: Not applicable; percentage in the portfolio: 24.0%. Group 2 Financial Institutions with Shareholders Equity higher than or equal to 7 billion; Minimum Rating: AA (S&P and Fitch) or Aaa (Moodys). Percentage in the portfolio: 64.2%. Group 3 Financial institutions with Shareholders Equity between 1 to 7 billion; Minimum Rating: AA (S&P and Fitch) or Aaa (Moody's). Percentage in the Portfolio: 9.8%. Group 4 Financial Institutions with Shareholders Equity between 500 million and 1 billion; Minimum Rating: A (S&P and Fitch) or A2 (Moodys). Percentage in the portfolio: 1.9%. Group 5 - Only Financial Institutions with restricted court deposits. Percentage in the portfolio: 0.1%.

Liquidity risk Liquidity risk relates to the Company's ability to settle its liabilities. In order to determine the ability to satisfactorily meet its financial liabilities, the streams of maturities for funds raised and other liabilities are reported with the Company's statements. Further information on the loans can be found in detail in Notes 16 and 17. The Company has raised funds through its operations, from financial market transactions and from affiliate companies. These funds are allocated primarily to support its investment plan and in managing its cash for working capital and liability management purposes. Management of temporary cash investments focuses on short-term instruments in an attempt to achieve maximum liquidity and satisfy our expenditure requirements. The Company's cash-generation ability and low volatility concerning receivables and accounts payable over the year provide cash flow stability and thus reduce its liquidity exposure.

102

The cash flows concerning for the future liabilities as per the relevant terms and conditions is summarized in the statement below:
Consolidated Interest rate instruments: Floating Loans, borrowings and debentures Fixed rate Loans, borrowings and debentures 10,032 11,762 150,508 289,131 461,433 648,951 454,765 4,152,150 1,262,842 6,518,708 1 to 3 months 3 months to 1 year 1 to 5 years More than 5 years Total

a)

Capital Management The Company manages its capital with the purpose of safeguarding its capacity to continuously offer return to shareholders and benefits to other stakeholders, in addition to maintaining the ideal capital structure to reduce costs. In order to maintain or adjust its capital structure, the Company reviews the dividend payment policy, returns capital to shareholders or issues new shares and sells assets to reduce the indebtedness level, for instance.
Parent Company 09/30/2012 12/31/2011 Financing and loans debt (-) Cash and cash equivalents Net debt Shareholders' equity Financial leverage ratio - % 15,594 15,594 3,260,786 0% 55,057 55,057 3,221,374 -2% Consolidated 09/30/2012 12/31/2011 4,813,769 1,176,675 3,637,094 3,260,786 112% 4,162,174 772,548 3,389,626 3,221,374 105%

b) Hierarchical Fair Value There are three types of classification levels for the fair value of financial instruments. This hierarchy prioritizes unadjusted prices quoted in an active market for financial assets or liabilities. The classification of hierarchical levels can be presented as follows: Level 1 - Data originating from an active market (unadjusted quoted price) that can be accessed on a daily basis, including on the date of fair value measurement. Level 2 - Different data originating from the active market (unadjusted quoted price) included in Level 1, extracted from a pricing model based on data observable in the market. Level 3 - Data extracted from a pricing model based on data that are not observable in the market.

103

Consolidated Measurement of Fair Value 09/30/2012 ASSETS Cash and cash equivalents (Note 4) Marketable Securities (Note 5) Swaps Total LIABILITIES Swaps Total 5,134 5,134 5,134 5,134 1,133,007 15,488 28,038 1,176,533 Identical markets Level 1 Similar markets Level 2 1,133,007 15,488 28,038 1,176,533 Without active market Level 3 -

No financial instrument classified as Level 1 or 3 was observed in the analysis period, and there was no transfer from one level to another in the same period. 32. INSURANCE

Below, a breakdown of main insurance considered sufficient by Management on September 30th, 2012 is summarized as follows:
RISKS Directors & Officers (D&O) Civil and general liability Operating risks* * Maximum Limit of Liability (LMR) is R$300,000 - Indemnity * Total Value at Risk of R$3,673,828 * Renewal in progress Effectiveness Term From To 08/10/2012 09/25/2012 10/31/2011 08/10/2013 09/25/2013 10/31/2012 Insured Amount R$40,350 R$20,000 R$ 3,673,828 Gross Premium (including cost of insurance policy + IOF) R$158 R$855 R$1,539

Main risk values covered by insurance of Renova Energia S.A. refer to power generation and transmission, due to its participation in the auctions LER 2009, 2010, LEN 2011 and the construction of wind power plants. 33. REPORTABLE SEGMENT Segment reporting was prepared according to CPC 22 (Operating Segment), equivalent to IFRS 8, and is reported in relation to the business of the Company, identified based on their management structure and internal management information. The Company's Management considers the following segments: power distribution, power generation, power trading and others (including the holding). The Company is segmented according to its operation, which has different risks and compensation.

104

Segment reporting for the nine-month period ended September 30th, 2012 and the year ended December 31st, 2011 are presented below:

Distribution Current assets Non-current assets Investments Property, plant and equipment Intangible assets Current liabilities Non-current liabilities Shareholders' equity 2,717,369 2,563,995 20,291 213,467 3,815,614 1,986,249 5,015,991 2,328,496

Generation 324,295 5,104 44,828 1,847,260 342,151 266,113 1,458,796 838,729

Trading 102,832 25,649 9,074 28,682 10,478 98,395

Other 225,860 260 3,275,051 2,178 1,964 265,026 171 3,240,116

Eliminations (271,977) (105,435) (3,273,284) (255,174) (122,238) (3,273,284)

Consolidated 09/30/2012 3,098,379 2,489,573 66,886 2,071,979 4,159,729 2,290,896 6,363,198 3,232,452
Consolidated 12/31/2011 2,726,875 2,139,598 54,086 1,985,833 4,075,268 1,987,128 5,773,158 3,221,374

Distribution Current assets Non-current assets Investments Property, plant and equipment Intangible assets Current liabilities Non-current liabilities Shareholders' equity 2,401,047 2,257,722 16,374 209,720 3,814,959 1,802,777 4,582,870 2,314,175

Generation 259,582 5,847 36,231 1,767,482 258,192 216,638 1,338,937 771,759

Trading 61,432 31,050 6,589 28,302 6,645 64,124

Other 153,432 273 3,146,008 2,042 3,598 88,029 3,217,324

Eliminations (148,618) (155,294) (3,144,527) (1,481) (148,618) (155,294) (3,146,008)

Income segment reporting:


01.01 to 09.30 OPERATIONAL REVENUE Billed supplies Unbilled supplies Supply - Electric Power Construction revenue Other REVENUE DEDUCTIONS Billed sales - ICMS (State VAT) Consumer charges PIS (Tax on Revenues) COFINS (Tax on Revenues) Other NET OPERATING REVENUE OPERATING EXPENSES AND COSTS Personnel Material Outsourced services Energy purchased Depreciation Provisions Construction cost Non-operating income Other Equity method FINANCIAL RESULT Financial income Financial expenses INCOME BEFORE TAXES Social Contribution Income tax NET INCOME Distribution 7,732,522 6,558,332 7,427 29,835 469,990 666,938 (2,734,905) (1,728,694) (602,499) (71,579) (329,669) (2,464) 4,997,617 (4,506,673) (195,834) (13,152) (260,606) (3,069,880) (212,893) (222,866) (469,990) (2,516) (58,936) (300,886) 120,548 (421,434) 190,058 (9,116) (24,199) 156,743 Generation 369,330 344,333 24,997 (38,645) (9,967) (5,104) (23,521) (53) 330,685 (133,941) (18,377) (826) (15,090) (28,023) (47,096) (1,479) 1,583 (24,633) 43,161 (56,042) 17,999 (74,041) 183,863 (12,924) (33,305) 137,634 Trading 423,728 391,751 31,977 (31,560) (26,938) (618) (2,836) (1,168) 392,168 (374,341) (4,416) (2,694) (14,897) (350,442) (532) (1,360) 321 1,320 (999) 18,148 (1,567) (4,231) 12,350 Other 11,800 11,800 (921) (122) (353) (446) 10,879 (18,591) (3,193) (28) (14,681) (70) 273 (892) 305,848 (4,758) 2,829 (7,587) 293,378 (68) (94) 293,216 Eliminations (281,170) (266,229) (14,941) (281,170) 295,997 280,882 Consolidated 2012 8,256,210 6,558,332 7,427 499,690 469,990 720,771 (2,806,031) (1,755,632) (612,466) (77,423) (356,379) (4,131) 5,450,179 (4,737,549) (221,820) (16,700) (305,274) (3,167,463) (260,591) (224,345) (469,990) 14,167 (85,533) (363,171) 128,665 (491,836) 349,459 (23,675) (61,829) 263,955 Consolidated 2011 7,727,030 6,171,104 (15,274) 378,780 556,886 635,534 (2,597,336) (1,704,436) (484,877) (72,338) (332,791) (2,894) 5,129,694 (4,493,502) (198,350) (18,235) (303,785) (2,817,571) (277,949) (244,004) (556,886) (1,399) (75,323) (329,426) 128,366 (457,792) 306,766 (26,981) (69,721) 210,064

14,827 288 (349,009) (1,806) (14,031) 12,225 (335,988) (335,988)

105

34. LONG-TERM INCENTIVE PLAN Phantom Share Option Plan The Phantom Share Option Plan was offered to eligible executives appointed by the Board of Directors and is directly related to creating value for Light, measured by Light's Value Unit (UVL) variation. The UVL calculation results from the following weighted factors: 1. Market value of Light S.A. shares; 2. 2. Economic value (a multiple of EBITDA); 3. 3. Amount of dividends distributed. The difference between the UVL estimated in the Program for the grant year and the UVL verified in the year of option exercise multiplied by the number of options exercised by participant will sum up the total long-term bonus payable to each participant. The Company made the calculations referring to the UVL as of September 30th, 2012, as this amount was lower than the UVL in the grant year, no liability was recorded on September 30th, 2012. 35. SUBSEQUENT EVENTS a) Payment of dividends On October 11th, 2012, the Company paid dividends referring to 2011 results and part of the profits reserve recorded on the balance sheet as of December 31st, 2011, approved at the Annual Shareholders Meeting held on April 11th, 2012, in the amount of R$181,501. b) Partial extraordinary amortization of the 5th Issue of Debentures of Light SESA On October 8th, 2012, the subsidiary Light SESA carried out the partial extraordinary amortization of the 5th Issue of Debentures of Light SESA, in the amount of R$375,000. c) Tariff adjustment In a public meeting held on November 6th, 2012, Aneel approved the 2012 Tariff Adjustment of the subsidiary Light SESA. The result ratified by Aneel accounts for a 10.77% tariff adjustment, comprising two components: (i) a structural component of 7.17% composed of non-manageable costs (Portion A) and manageable costs (Portion B); and (ii) a financial component of 3.60% to be valid for the next twelve months. Considering the removal of the financial component in Lights tariff effective up to date of -0.64%, the average increase for consumers will be 11.41% as of November 7th, 2012.

We point out that this tariff adjustment does not include the effects deriving from the Provisional Measure No. 579 of September 11th, 2012, as the tariff reduction provided 106

for therein only shall apply as of February 5th, 2013, when Aneel will implement the Extraordinary Tariff Reviews for all Brazils electric power concessionaires.

BOARD OF DIRECTORS SITTING MEMBERS Srgio Alair Barroso Humberto Eustquio Csar Mota Raul Belens Jungmann Pinto Maria Estela Kubitscheck Lopes Djalma Bastos de Morais Jos Carlos Aleluia Costa Rutelly Marques da Silva Andr Fernandes Berenguer Gilherme Narciso de Lacerda David Zylberstajn Carlos Alberto da Cruz FISCAL COUNCIL SITTING MEMBERS Marcelo Lignani Siqueira Aristteles Luiz Menezes Vasconcellos Drummond Eduardo Grande Bittencourt Rogrio Fernando Lot Ernesto Costa Pierobon ALTERNATES Francisco Luiz Moreira Penna Ari Barcelos da Silva Ronald Gasto Andrade Reis Francisco Vicente Santana Silva Telles Raphael Manhes Martins ALTERNATES Luiz Fernando Rolla Csar Vaz de Melo Fernandes Fernando Henrique Schuffner Neto Carmen Lcia Claussen Kanter Wilson Borrajo Cid Jos Augusto Gomes Campos Mrcio Lus Domingues da Silva Marcelo Pedreira de Oliveira Jalisson Lage Maciel Almir Jos dos Santos Magno dos Santos Filho

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BOARD OF EXECUTIVE OFFICERS Paulo Roberto Ribeiro Pinto Chief Executive Officer Joo Batista Zolini Carneiro Chief Financial and Investor Relations Officer Andreia Ribeiro Junqueira e Souza Personnel Officer Paulo Carvalho Filho Corporate Management Officer

Evandro Leite Vasconcelos Energy Officer and Business Development Officer (ad interim) Jos Humberto Castro Distribution Officer Fernando Antnio Fagundes Reis Legal Officer Luiz Otvio Ziza Mota Valadares Communication Officer CONTROLLERSHIP SUPERINTENDENCE Roberto Caixeta Barroso Controllership Superintendent CPF 013.011.556-83 CRC-MG 078086/O-8 Suzanne Lloyd Gasparini Accountant Accounting Manager CPF 081.425.517-56 CRC-RJ 107359-0

108

Deloitte Touche Tohmatsu

(Convenience Translation into English from the Original Previously Issued in Portuguese) REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION To the Shareholders, Board of Directors and Management of Light S.A. Rio de Janeiro - RJ Introduction We have reviewed the accompanying individual and consolidated interim financial information of Light S.A. (the Company), identified as Parent and Consolidated, respectively, included in the Interim Financial Information Form (ITR), for the quarter ended September 30,2012, which comprises the balance sheet as of September 30,2012 and the related statements of income for the three and nine-month periods then ended and of changes in equity and of cash flows for the nine-month period then ended, including the explanatory notes. The Companys Management is responsible for the preparation of the individual interim financial information in accordance with technical pronouncement CPC 21 (R1) - Interim Financial Information and of the consolidated interim financial information in accordance with technical pronouncement CPC 21 (R1) and with international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of Interim Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with Brazilian and international standards on review of interim financial information (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the individual interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information included in the ITR referred to above was not prepared, in all material respects, in accordance with technical pronouncement CPC 21 (R1), applicable to the preparation of the Interim Financial Information (ITR), and presented in accordance with the standards issued by the CVM.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte Touche Tohmatsu. All rights reserved.

Deloitte Touche Tohmatsu

Conclusion on the consolidated interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the ITR referred to above was not prepared, in all material respects, in accordance with technical pronouncement CPC 21 (R1) and international standard IAS 34, applicable to the preparation of Interim Financial Information (ITR), and presented in accordance with the standards issued by the CVM. Other matters Statements of value added We have also reviewed the individual and consolidated interim statements of value added (DVA) for the nine-month period ended September 30, 2012, prepared under the responsibility of the Company's Management, the presentation of which is required by the standards issued by the CVM applicable to the preparation of Interim Financial Information (ITR), and considered as supplemental information for International Financial Reporting Standards IFRS, which do not require the presentation of DVA. These statements were subject to the same review procedures described above, and, based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, consistently with the individual and consolidated interim financial information taken as a whole. Review of individual and consolidated interim financial information for the quarter ended September 30, 2011, and audit of individual and consolidated financial statements for the year ended December 31, 2011 The information and amounts for the three and nine-month periods ended September 30, 2011, presented for comparison purposes, were previously reviewed by other independent auditors, whose report, without qualification, was issued and dated on November 10, 2011. The information and amounts for the year ended December 31, 2011, presented for comparison purposes, were previously audited by other independent auditors, whose report, was issued and dated on March 02, 2012, which did not contain any changes, except for the emphasis of matters paragraph related to the individual interim financial information was prepared in accordance with the accounting practices adopted in Brazil and in the case of Light S.A. theses accounting practices differ from the International Financial Reporting Standards (IFRS) issued by International Accounting Standard Board - IASB applicable to separate financial statements, only with respect to the measurement of investments in subsidiaries, associates and joint ventures by the equity method of accounting, which, for purposes of IFRS, would be measured at cost or fair value. The accompanying individual and consolidated interim financial information has been translated into English for the convenience of readers outside Brazil. Rio de Janeiro, November 6, 2012

DELOITTE TOUCHE TOHMATSU de Sousa Auditores Independentes

Antnio Carlos Brando Engagement Partner

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte Touche Tohmatsu. All rights reserved.