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Conference Call 2nd Quarter 2013. Highlights  2.6% increase in Net Revenue (without construction revenue) reaching R$ 1,670.9 million in the 2Q13; 

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Presentation on theme: "Conference Call 2nd Quarter 2013. Highlights  2.6% increase in Net Revenue (without construction revenue) reaching R$ 1,670.9 million in the 2Q13; "— Presentation transcript:

1 Conference Call 2nd Quarter 2013

2 Highlights  2.6% increase in Net Revenue (without construction revenue) reaching R$ 1,670.9 million in the 2Q13;  EBITDA of R$ 277.9 million in 2Q13, 8.9% up, as a consequence of the higher participation of the generation activity. Adjusted by the regulatory assets (CVA), it reaches R$ 397.2 million, 20.1% above 2Q12.  Net Income of R$ 58.2 million in the quarter, an increase of 46.2% over 2Q12. Adjusted by CVA. it reaches R$ 136.9 million, 52.5% above 2Q12.  Net Debt of R$ 4.056.1 million with a multiple for covenants at 2.62x. RESULTS  Consumption grew 2.5% compared to 2Q12, mainly driven by the commercial and industrial segments whch increased by 5.1% and 4.1%, respectively;  Collection rate for the first quarter reached 104.2%. 30 bps above the 2Q12;  Non-technical losses (LTM) of 44.2%, 70 bps down on march/2013;  In 1H13, investments amounted R$ 326.7 million, of this total, R$ 272.8 million went to the distribution segment. OPERATIONAL  Aneel announced the preliminary proposal of Light SESA’s Tariff Revision, and the details will be discussed in a Public Hearing, with an on-site meeting in the city of Rio de Janeiro, in September, 13. REGULATORY

3 Energy Consumption Distribution – Quarter +2.5% 5,754 5,669 23.5ºC 23.2ºC 2Q12 2Q11 5,460 5,897 2Q10 22.7ºC +2.6% 2Q13 1 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 (GWh) ¹ Industrial 5.8% Free 16.0% Others 15.1% Commercial 29.6% Residential 33.4%

4 Energy Consumption Distribution – Half +3.1% 11,934 11,960 25.2ºC 25.1ºC 1S12 1S11 11,585 12,303 1S10 25.1ºC 25.5ºC +2.0% 1S13 1 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 (GWh) ¹ Industrial 5.7% Free 14.4% Others 14.7% Commercial 29.5% Residential 35.7% With the consumption no longer billed by the change in criteria. the total energy consumption increase in the concession area would be 3.4% over 2Q12.

5 Total Market RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL 2Q122Q13 ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER 2Q122Q13 2Q122Q13 2Q122Q13 2Q122Q13 FREE CAPTIVE +2.5% +5.1% +0.1% +0.6% 889 893 937 48 49 942 1,867 182 215 1,962 373 342 980 607 678 1.021 1,969 1,972 1,685 1,748 4,916 4,954 5,754 837 942 5,897 +4.1%

6 +3.1% 10,295 10,526 11,934 1,639 1,777 12,303 +2.2% 1,771 1,806 1,868 98 103 1,909 +6.5% 3,808 374 430 4,055 774 701 1,941 1,167 1,244 1,945 +1.8% 4,317 4,395 0.2% 3,434 3,625 RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL 1H121H13 1H121H13 1H121H13 1H121H13 1H121H13 FREE CAPTIVE ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – HALF Total Market

7 Collection 108.1% COLLECTION RATE 12 MONTHS COLLECTION RATE BY SEGMENT QUARTER 103.9% 104.2% 104.5% 105.0% 100.1% 101.8% 107.4% 2Q122Q13 98.2% 99.5% Jun/12Jun/13 TotalRetailLarge ClientsPublic Sector

8 Collection 102.5% COLLECTION RATE 12 MONTHS COLLECTION RATE BY SEGMENT HALF 99.3% 102.5% 102.0% 98.0% 99.7% 103.4% 104.0% 1H121H13 98.2% 99.5% Jun/12Jun/13 TotalRetailLarge ClientsPublic Sector

9 Loss Prevention INCORPORATION GWh 1H13 1H12 69.4 50.4 +37.6% ENERGY RECOVERY GWh 1H13 1H12 35.6 35.3 LOSS (12 MONTHS) 43.1% 42.2% 32.9% % Non-technical losses/ LV Market Non-technical losses GWh Technical losses GWh % Non-technical losses / LV Market - Regulatory 5,615 2,432 7,838 8,047 44.2% +1.0% Mar/13Jun/12 Jun/13 2,381 5,457 45.4% 6,029 2,618 8,647 Sep/12 6,007 2,577 8,584 Dec/12 44.9% 5,953 2,629 8,582

10 Losses Control Initiatives Results until June/13 Average losses reduction: 26.0 p.p. Average Collection increase: 7.0 p.p. Average losses reduction : 51.8 p.p. Average Collection increase : 80.4 p.p. FavelasZero Losses Area (APZ)

11 Net Revenue Industrial 5.5% NET REVENUE (R$MN) Generation 7.4% Distribution 83.1%** NET REVENUE BY SEGMENT (2Q13)* Commercialization 9.5% * Eliminations not considered ** Construction revenue not considered NET REVENUE FROM DISTRIBUTION (2Q13) Commercial 30.0% Others (Captive) 12.7% Network Use (TUSD) (Free + Concessionaires) 9.7% Residential 42.1% Construction Revenue Revenue w/out construction revenue 2Q13 2Q12 +3.2%,.846.5 1,790.1 162.2 1,670.9 1,627.9 175.6 +4.8% 3,389.1 3,532.0 332.8 299.7 3,688.8 3,864.8 +2.6% +4.2% 1H13 1H12

12 Operating Costs and Expenses Manageable (distribution): R$ 358.4 (22.4%) Generation and Commercialization: R$ 207.9 (13.0%) Non manageable (distribution): R$ 1,036.6 (64.7%) * Eliminations not considered ** Construction revenue not considered DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 2Q13 R$ MN2Q122Q13Var.1H121H13Var. PMSO169.9202.319.0%337.6386.314.4% Provisions84.066.6-20.7%170.5111.8-34.4% PCLD72.248.4-33.0%133.877.4-42.1% Contingencies11.818.254.2%36.734.4-6.3% Depreciation67.983.823.6%143.6164.514.6% Other operational/ revenues expenses 0.85.7567.2%4.112.9219.2% Total322.6358.411.1%655.7675.53.0% 322.6 358.4 +11.1% 2Q13 2Q12 1H13 1H12 655.7 675.5 +3.0%

13 EBITDA CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT* 2Q13 Generation 35.9% (EBITDA Margin: 75.9%) Commercialization 1.5% (EBITDA Margin: 2.5%) Distribution 62.6% (EBITDA Margin: 11.7%) *Eliminations not considered 277.9 255.1 +8.9% 2Q122Q131H121H13 633.1 688.5 -8.0%

14 EBITDA EBITDA 2Q12 EBITDA 2Q13 Net Revenue Non- Manageable Costs Manageable Costs (PMSO) Provisions Regulatory Assets and Liabilities Adjusted EBITDA 2Q12 Adjusted EBITDA 2Q13 EBITDA – 2Q12 / 2Q13 (R$ MN) Other operational/ revenues + 20.1% +8.9% Equity Pick-up 76 331 255 43 1 (33) (6) 0.2 119 397 17 278

15 EBITDA EBITDA 1H12 EBITDA 1H13 Net Revenue Non- Manageable Costs Manageable Costs (PMSO) Provisions Regulatory Assets and Liabilities Adjusted EBITDA 1H12 Adjusted EBITDA 1H13 EBITDA – 1H12 / 1H13 (R$ MN) Other operational/ revenues + 12.0% -8.0% Equity Pick-up 74 762 689 143 (191) (1) 220 854 59 633 (52) (13)

16 Net Income 2Q12 2Q13 EBITDAFinancial Result TaxesOthers ADJUSTED NET INCOME 2Q12 / 2Q13 (R$ MN) Regulatory Assets and Liabilities Adjusted Net Income 2Q12 Adjusted Net Income 2Q13 + 46.2% + 52.5% 90 50 40 23 26 (14) (16) 58 79 137

17 Net Income 1H12 1H13 EBITDAFinancial Result TaxesOthers ADJUSTED NET INCOME 1H12 / 1H13 (R$ MN) Regulatory Assets and Liabilities Adjusted Net Income 1H12 Adjusted Net Income 1H13 - 23.9% + 23.6% 228 49 180 (55) 16 (20) 137 145 282

18 Indebtedness Average Term: 4.2 years AMORTIZATION SCHEDULE* (R$ MN) Nominal Cost Real Cost NET DEBT¹ Without Pension Fund *ConsideringHedge * Principal only COST OF DEBT 2012 2011 2010 Jun/13 Net Debt / EBITDA Jun/13Mar/13 2.24% 8.21% 4.87% 11.08% 4.25% 11.03% 8.84% 2.40% 4,031.4 4,056.1 2.73 2.62 1 Reclassified to reflect the deconsolidation results of jointly controlled companies. 266 663 772 1,007 799 665 437 442 192 347 TJLP 15.6% CDI 72.4% IPCA 10.1% Others 1.5% U$/Euro 0.5%

19 Investments CAPEX (R$ MN) CAPEX BREAKDOWN (R$ MN) 1H13 Generation 7.1 Administration 13.7 Others 5.2 Develop. of Distribution System 175.0 Losses Combat 92.6 Investments in Electric Assets (Distribution) Commerc./ Energy Eficiency 33.1 2010 2009 563.8 928.6 700.6 2011 2012 796.8 694.1 102.7 446.9 116.9 518.8 181.8 774.8 153.8 1H13 1H12 302.3 272.8 26.0 53.9 328.4 326.7 -0.5%

20 Tariff Review Preliminary proposal - Main issues: 1)Remuneration Asset Base: Gross Remuneration Asset Base: R$ 11,451,023,315 Net Remuneration Asset Base : R$ 6,398,174,913 2)Regulatory Non-Technical Losses: Starting point: 31.82% Reduction trend: 1.195 p.p. Work Group comprised of the Aneel’s technician within thirty days as from August 7, 2013 Next steps: September, 13 – Public Hearing meeting October, 3 – Aneel sends new proposal to Light and consumers’ representatives (estimate) October, 29 – Aneel’s Board Meeting (estimate) November, 7 – Tariff Review

21 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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.

22 Contacts João Batista Zolini Carneiro CFO and IRO Luiz Felipe Negreiros de Sá Superintendent of Finance and Investor Relations +55 21 2211 2814 felipe.sa@light.com.br felipe.sa@light.com.br Gustavo Werneck IR Manager + 55 21 2211 2560 gustavo.souza@light.com.br gustavo.souza@light.com.br www.light.com.br/ri www.facebook.com/lightritwitter.com/LightRI


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