Corporate Presentation

January 2013

Light Holdings

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.

21.99%

Central Elica Fontainha Ltda.

100%

Central Elica So Judas Tadeu Ltda.

Norte Energia S.A.

9.77%

100%

EBL Cia de Eficincia Energtica S.A 33%

Guanhes Energia S.A.

51% 100%

Distribution

Generation

Commercialization and Service

Institutional

System

Electric Vehicles

Rankings
Among the largest players in Brazil
Integrated Net Revenues 2011 R$ Billion
15.8 12.8 9.8 7.8 6.2 5.4 29.139 25.593 22.932

Distribution Energy Consumption in Concession Area (2011) - GWh1

54.590 50.404 45.101

Cemig

CPFL

Neoenergia

Copel

Light

Energias do Brasil

CPFL

Cemig

Eletropaulo

Neoenergia

Copel

Light2

Generation Private-owned Companies Installed Hydro-generation Capacity (MW) 2011

6.908

2.654 2.241 2.210 1.828 866

Souce: Companies reports Note: 1 Captive market + free clients 2 It doesnt consider the consumption of CSN and CSA

Shareholders Structure
BTG PACTUAL 14.29% 2.74% 28.57% 5.50% 28.57% VOTORANTIM 5.50% 28.57% 5.50% PARATI MINORITY SHAREHOLDERS 3.20% 0.42% 96.80% REDENTOR ENERGIA 100% 13.03% 100% 25.64%* 75% 19.23% 25% 6.41% FIP REDENTOR CEMIG

Indirect stake in blue

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

SANTANDER

BANCO DO BRASIL

FIP LUCE 100% 13.03%

FOREIGN 57.02%

NATIONAL 42.98%

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)

Corporate Governance
General Assembly Fiscal Council Board of Directors

Finances Committee

Human Resources Committee

Auditors Committee Chief Executive Officer

Paulo Roberto R. Pinto

Governance and Sustainability Committee

Management Committee

Chief Financial and Investor Relations Officer

Joo B. Zolini Carneiro

Chief Distribution Officer

Jos Humberto Castro

Chief Energy Officer

Evandro L. Vasconcelos

Chief HR Officer
Andreia Ribeiro Junqueira

Chief Legal Officer

Fernando Antnio F.Reis

Corporate Management Officer

Paulo Carvalho Filho

Chief Business Officer

Evandro L. Vasconcelos*
Interim*

Chief Communications Officer

Luiz Otavio Ziza Valadares

LGSXY
ADR-OTC
5

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

LIGHT

4.0 million clients (serving 10 million people) Energy sales (2011) 22.932 GWh 70% of the consumption of Rio de Janeiro state (Brazils 2nd GDP)

Energy Consumption
Distribution
ELECTRICITY CONSUMPTION TOTAL MARKET (GWh) - Quarter
+3.2% +3.5%

4.989

5.144

5.299

5.486
OTHERS 15%

FREE 15%

INDUSTRIAL 7%

21.7C

22.1C

21.7C

22.4C

3Q09

3Q10

3Q11

3Q12

COMMERCIAL 30%

RESIDENTIAL 33%

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

Total Market
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET 3rd QUARTER
+3.5%

5.299 740
-4.3% +13.3%

5.486 840

1.882

1.801
+1.7%

1.595 155

1.807 180
+4.6%

4.559 894 47 847

4.645

968 541 427 3Q11 3Q12 3Q11

984 614 370 3Q12

854 1.440 1.627 45 810

3Q11

3Q12

3Q11

3Q12

3Q11

3Q12

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE

Prospects for State of Rio

Investments of R$ 211.5 billion in the State of Rio de Janeiro Period 2012-2014
Tourism R$ 1.8 bn 0.9%

Others R$ 1.9 bn 0.9% Olimpic Facilities R$ 8.6 bn 4.1% Transformation Industry R$ 40.5 bn 19.1%

Oil R$ 107.7 bn 50.9%

Infrastructure R$ 51.0 bn 24.1%

Source: Firjan (Industry Federation of Rio de Janeiro)

Economic activity leading to more demand

The State of Rio de Janeiro will attract $ 250 billion as investments by 2016
-Coquepar (42MW) -Procter & Gamble (10MW) -Alpargatas (ND) -RHI (5MW) -Lavazza (3MW) -Ajebras (5MW) -Reluz (ND) -Embelleze (5MW) -MRS (ND) -Nestl (3MW)

-AMBEV (ND) -NeoBus (10MW)

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

Centro Tecnolgico Fundo (ND)

Rio de Janeiro

Source: Associao Brasileira de Municpios ABM website.

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

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

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

10

Collection

COLLECTION RATE BY SEGMENT QUARTER COLLECTION RATE 12 MONTHS

99.8% 97.2% 98.3%

97.7% 97.8%

93.0%

96.3%

102.2% 99.7%

106.2%

TOTAL Total

RETAIL Varejo

LARGE CLIENTS Grandes

PUBLICPblico Poder SECTOR

Sep/11

Sep/12

3Q11

3Q12

11

Loss prevention
LOSS (12 MONTHS)
43.1% 42.2% 40.7% 40.4% 41.2% 33.8% 7.839 8.047
Reflects exclusion of long term delinquent customers from the billing system, according to Resolution 414 by Aneel.

7.627

7.582

7.665

5.229

5.247

5.316

5.457

5.615

Non Technical Losses Distribution (5.615 GWh)

2.328 Sep/11

2.335

2.349 Mar/11

2.381

2.432

63% 37%

Dec/11

Jun/11

Sep/12

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

Technical losses GWh Non% Non-technical losses / LV Market - Regulatory Risky Area NonNon-Risky Area

12

New Technology Program

Light aims to reduce losses through investments in new technologies, integration of operational activities, increase of public awareness and institutional partnerships with interested agents.
Grid shielding projects Technology used in regions in which conventional measures are not effective Areas that present high levels of non-technical losses
Control room

Actual grid
Medium voltage

Shielded grid
Centralized meter Medium voltage Low voltage

Low voltage

3m

Mechanical Meter

9m

Display

13

New Technology Program

Meters Installed
(Thousands)

283 208 38 110 38 170 245 38

Monitoring, reading, cutting and reconnection of customers telemetry MCC (Measuring Center Centralized) Prioritization in areas of high losses and aggressiveness to the network Technology hindering interference in networks inappropriate

72 2010
INDIVIDUAL (ITRON)

2011

Sep /12
CENTRALIZED (LANDIS GYR. CAM and ELSTER)

14

New Technology Results - Individual

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

15

New Technology Results - Centralized

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

16

Zero Losses Area Area: Nova Cidade Neighborhood - Nilpolis

FEATURES CLIENTS NETWORK (KM.) TRANSFORMER (QTY.) POWER (MVA) LV 10,083 50 107 12,9 MV 3 23 TOTAL 10,086 73

RESULTS COLLECTION (R$ MN) NON-TECHNICAL LOSSES

Nov/10 DeC/11

2010 8.9 41.7%

2011 10.3 7.4%

17

Program Gains An example

NEW METER INSTALLATION

REAL CONSUMPTION 300 kWh

ENERGY SAVED 100 kWh LOST ENERGY 200 kWh BILLED CONSUMPTION 100 kWh BILLED CONSUMPTION INCREASE 100 kWh

OTHER EFFECTS (BY-PRODUCTS): BAD DEBT PROVISION REDUCTION OPERATIONAL COSTS REDUCTION

CAPEX GOES TO THE RAB

18

Transformation of risky areas

19

Pacified Communities

Santa Marta Clients Losses Delinquency

Before 73 90% 70%

After 1.605 6% 2%

Alemo Batan

Macacos

64.7 thousand clients inside pacified communities with new meters and network

Andara Salgueiro Formiga S. Marta Cidade de Deus Borel e Casabranca Tabaj. e Cabr. Cantag. e Pavoz. Mang. e Babil.

20

Generation Business

Installed Capacity
Installed Capacity 868 MW
51%

100%
SHP Paracambi 13 MW
Paraiba do Sul River

100%
SP HPP Santa Branca

Lajes Complex

HPP Ilha dos Pombos RJ

HPP Ilha dos Pombos 187 MW

HPP Santa Branca 56 MW

100%

100%

100%

HPP Fontes Nova 132 MW

HPP Underground Nilo Peanha - 380 MW

HPP Pereira Passos 100 MW

22

Re-pricing of existing energy

Conventional Energy Balance Assured energy (MW average)

553 25 53

539 25 52

535 25 206

535 25 228

535 25

535 25

535 25

535 25

535 25

535 25

259

267

272

282

282

282

340 475 304 122

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

282

251

243

238

228

228

228

2013

2014

2015

2016

2017

2018

2019

2020

2021

128

135

148

151

155

157

157

157

157

157

Contracted Energy (Regulated)

Contracted Energy (Free)

Available Energy

Hedge

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

23

Generation Expansion

Paraiba do Sul River

Lajes Complex SP

RJ

HPP Itaocara

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

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

24

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

Shareholder Structure
December 2012
FIP Santa FIP Caixa Barbara Outros; Ambiental 6.1% 4.0% Santander 7.1% 3.0%
RR Participaes 21.99%

Auctions Performance The biggest winner in the Reserver Energy Auction of 2009 The biggest winner in the Reserver Energy Auction of 2010 2nd largest winner in the Auction A-3 of 2011 Companys Portfolio 41.8 MW of SHPs in operation under the PROINFA contract 294.4 MW of wind energy under construction to start the operation in Jul/2012

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

InfraBrasil 15.2% BNDESPAR RR 12.1% Participaes(1) 8.5%

Light 21.99%

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

808.3 MW of contracted wind energy to be delivered between 2013 until 2017 Pipeline 5.8 GW under development Projects in the same area providing synergies and scale gains

(1)

Share of RR Participacoes SA out of the control block

25

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

Term (years)

Index

SHPP

20

IGPM

In operation since 2008 In operation since Jul 2012 Sep 2013

41.8

61.3

24.2

4.901

BNB Contracted

LER 2009

14

20

IPCA

293.6

50.8

148.9 (*)

3.996

BNDES Contracted

LER 2010

20

IPCA

162.0

52.7

86.8 (*)

3.878

BNDES Eligibility

Y-3 2011

19 years and 10 months

IPCA

Mar 2014

212.8

50.5

108.1 (*)

3.245

BNDES Eligibility

Y-5 2012

20

IPCA

Jan 2017

22.4

PPA Light 1

10 (E)

20

IPCA

Sep 2015

200.0

50.5(E)

100 (E)

3.245

PPA Light 2

10 (E)

20

IPCA

Sep 2016

200.0

50.5 (E)

100 (E)

3.245

Loan
-

Sites

* Does not considered the network basic losses.

26

Belo Monte Overview

Norte Energia S.A. Shareholders Profile Technical data on the concession:
Concession period 35 years End of concession August 25, 2045
Amaznia Energia 9,77% Self prod. 10,00%

Technical data on the project:

Installed capacity - 11.233 MW
Others privates 30,25% Public sector 49,98%

Main engine room 11.000 MW Auxiliary engine room 233 MW

Assured Energy (Average MW) 4.571 MW Reservoir 516 Km Flooded area/generation ratio of 0.05 Km/MW 5.000 families affected Estimated project cost (April 2010) R$ 25.8 billion

Other Informations:
49.0% CS 100.0% PS 74.5% of total stock 51.0% CS 0.0% PS 25.5% of total stock

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

BNDES loan ensures leverage at low cost on favorable terms.

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

Tender 30 years, fixed installments. 85% of items financiable. PSI line.

Amaznia Energias equity in the project estimated at R$ 150 million (Apr. 2010), to be disbursed over 6 years. Expansion of generation portfolio: Increases Lights total generation portfolio by 280 MW

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

27

Guanhes
TOTAL CAPEX R$ Million
PCH Installed Capacity (MW) Assured Energy (MW average) ANEEL Authorization Operation - Start up Authorization Term Dores de Guanhes 14 8 11/22/2002 Dec/13 Senhora do Prto 12 6.77 10/08/2002 Dec/13

269.2
Jacar 9 5.15 Fortuna II 9 5.11 Total 44 25.03

Equity

60.2 57.8

Light Energia Cemig GT BNDES

10/29/2002 12/21/2001 Feb/14 Oct/13

Debt

151.2

30 years (with renewal for 20 years)

28

New Generation Projects

Investments in Renova. Belo Monte and Guanhes. in line with our strategy of growing in the generation business
Installed Capacity (MW)

+ 59.3%
280 171 13 74* 942 9 77 22 1.500

855

Installed Capacity

SHP Paracambi (+) Renova

Current Capacity

SHP Lajes

HPP Itaocara

(+) Renova

(+) Belo Monte

Capacity After (+) Guanhes Expansion

Considering 51% stake Considering 21.9% stake Considering 2.5% stake

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

29

Results

Net Revenue
NET REVENUE BY SEGMENT (3Q12)*

NET REVENUE (R$MM)

Generation 6.8%

Comercialization 5.3% Distribution 87.9%**

+6.2%

5.129.7
+5.5%

5.450.2 470.0
* Eliminations not considered ** Construction revenue not considered
8.9%

556.9

1.657.1 230.6

1.748.0 170.3
10.6%

4.572.8

4.980.2

NET REVENUE FROM DISTRIBUTION (3Q12)

Captive) Others (Captive) 13.1%

1.426.5

1.577.7

Network Use (TUSD) 10.3% 10.3%

Concessionaires) (Free + Concessionaires)

3Q11

3Q12

9M11

9M12

7.6% Industrial 7.6%

Construction Revenue Revenue w/out construction revenue

Commercial 30.1% Residential 38.9%

31

Operating Costs and Expenses

DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 3Q12
-4.0% -2.3%

974.0

951.8

Manageable distribution): (distribution): R$ 300.2

(21.0%)

312.5

300.2

Non manageable distribution): (distribution): R$ 1.003.1

(70.1%)
2T11 3Q11 2T12 3Q12 1S11 9M11 1S12 9M12

Generation and Commercialization: Commercialization: R$ 127.4

(8.9%) 8.9%) PMSO

R$ MN

3Q11 149.0 83.0

72.2 10.8

3Q12 178.5 52.3

39.3 13.0

Var % 19.8% -36.9%

-45.5% 20.4%

9M11 496.9 242.6

216.0 26.6

9M12 516.0 222.9

173.2 49.7

Var % 3.8% -8.1%

-19.8% 87.1%

* Eliminations not considered

Provisions
PCLD Contingencies

Depreciation Total

80.6 312.5

69.3 300.2

-14.0% -4.0%

234.5 974.0

212.9 951.8

-9.2% -2.3%

32

EBITDA

CONSOLIDATED EBITDA (R$MN)

EBITDA BY SEGMENT* 3Q12

+4.8%

915.5

959.1

Distribution 67.9%
+12.4%

Generation 29.5%

Margin: (EBITDA Margin: 12.9%)

Margin: (EBITDA Margin: 72.1%)

239.8

269.5

Commercialization 2.6%
Margin: (EBITDA Margin: 8.1%)

2T11 3Q11

2T12 3Q12

1S11 9M11

1S12 9M12

*Eliminations not considered

33

EBITDA
EBITDA 9M11/9M12 (R$ MN)

+18.9%

+4.8%

407 194 971 55 916 (350) (34) 20 959 1.154

Adjusted EBITDA 9M11 9M11

Regulatory Assets and Liabilities

EBITDA 9M11

Net Revenue

NonNonManagable Managable Costs (PMSO) Costs

Provisions

EBITDA 9M12

Regulatory Assets and Liabilities

Adjusted EBITDA 9M12 9M12

34

Net Income
NET INCOME 9M11/9M12 (R$ MN)

128 246 36 44 (34) 11 33 264

392

210

Adjusted Net Income 9M11 9M11

Regulatory Assets and Liabilities

9M11 9M11

EBITDA

Financial Result

Taxes

Others

9M12 9M12

Regulatory Assets and Liabilities

Adjusted Net Income 9M12 9M12

35

Dividends
DIVIDENDS AND DIVIDEND YIELD PAYOUT AND DIVIDEND POLICY

16.2% 12.4% 11.6% 795 554 595 556 87 469 439 87 352 50%

9.5%

8.7%

100%

100% 76.3% 81.0%

100%

97.2%

2008 2008

2009 2009

2010 2010

2011 2011

2012 2012 Dividend Yield*

2007 2007

2008 2008

2009 2009*

2010 2010

2011 2011

9M12 9M12

Dividends (R$ MN)

Interest on Equity (R$ MN)

Payout

Dividend Policy

Based on the closing price of the day before the announcement

Based on Net Income of the year. before IFRS adjustments

Note: Profit Reserve existing in the Balance of 12/31/2011: R$ 163 million.

36

Indebtedness leverage
Net Debt (R$ MM) and Net Debt / EBITDA

Investment Grade (brA)

Rating (brA + )

Rating (Aa2.br)

Rating (AA-(bra)) Dec/11

3.383

3.622

1.947 1.580 1.637 2.7

2.8

1.1

1.2

1.2

2008

2009 Net Debt

2010

2011 Net Debt/ EBITDA

Sep/12

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

37

Indebtedness
NET DEBT
3.143.5 3.621.6

AMORTIZATION SCHEDULE* (R$ MN) Average Term: 3.7 years

832 2.5 2.8 198 Sep/12 Sep/12 9M10 2012

* Principal only

582

754

855

1.477

Sep/11 Sep/11 9M09

2013

2014

2015

2016

After 2016

Net Debt / EBITDA

COST OF DEBT
9.84% 5.30% 11.08% 11.01% 8.54% 8.54% 3.09%

CDI/Selic 74.2%

Others 2.0% 2.0%

TJLP 23.5%

US$/Euro 0.4%*

4.87%

4.51%

2009

2010 Real Cost

2011

Sep/12 Sep/12
* Considering Hedge

Nominal Cost Custo Nominal

38

Investments

CAPEX (R$MN)
+32.5%

928.6 169.9
-10.9%

CAPEX BREAKDOWN (R$MN) 9M12

Generation Maintenance 11.5 Generation Projects 1.7 Quality Improvement 97.9 Others 59.6 Develop. of Distribution System 200.7

700.6 546.7 92.9 453.8 563.8 116.9 446.9 181.8 518.8

592.7 758.7 85.1

527.8 45.8

507.6

482.0

2008

2009

2010

2011

9M11

9M12

Losses Combat 156.4

Investments in Electric Assets (Distribution)

39

Why Invest in Light?

Economic Transformation in the Concession Area

Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones Market growth

Repricing of Existing Energy

New PPAs starting in 2013 and 2014 Revenues increase with no aditional costs. Very active trading subsidiary

Energy Losses Reduction

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

Best-in-Class Corporate Governance

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

Growth in the Generation Business

Investment in Renova. Belo Monte and Guanhes (total of 548 MW) SHP Paracambi Operational Start SHP Lajes under construction.

Dividend track Record

Sound Dividend Policy: minimum 50% of net income; Average payout over last five years: 91%

40

Important Notice

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

41

Contacts

Joo Batista Zolini Carneiro

CFO and IRO

Gustavo Werneck
IR Manager + 55 21 2211 2560 gustavo.souza@light.com.br

www.light.com.br/ri

42