Conference Call

3rd Quarter 2013

Highlights
Total energy consumption was 1.7% higher than in 3Q12, driven by the increase in consumption in the commercial segment, which grew by 2.5%; Collection in 9M13 stood at 101.1% of billed consumption, 2.3 p.p. up on 3Q12;

OPERATING

Non-technical energy losses of billed energy in the low-voltage market in the last 12 months closed the quarter at 43.7%, 1.7 p.p. down since December 2012; In 9M13, investments totaled R$482.2 million, R$393.9 million of which in the distribution business.

Consolidated Net Revenue (excluding revenue from construction) came to R$1,615.2 million, 3.8% up on 3Q12; Consolidated EBITDA amounted to R$722.0 million in 3Q13, 161.1% up on 3Q12, positively impacted by the transfer of funds from the Energy Development Account (CDE), totaling R$303.4 million. Excluding this effect, EBITDA increased by 51.4%; Net Income of R$321.5 million in 3Q13, 282.1% up on 3Q12, also affected by the transfer of CDE funds. Excluding this effect, net income grew by 44.1%; Net Debt of R$4,151.6 million, with net debt/EBITDA ratio covenant of 2.68x; Prepayment of R$160 million from the 5th debenture issue, at a cost of CDI plus 1.5% p.a. On November 5, 2013, ANEEL approved the tariff revision process of Light SESA, with positive average effect on energy bills of 3.65% as of November 7, 2013.

FINANCIAL

REGULATORY

Energy Consumption
Distribution Quarter
TOTAL MARKET (GWh)
+2.8% +1.7%
Livre

Free 16% 16.1%

Outros Cativos 16%

Industrial 6%

5,144

5,299

5,486

5,581

Industrial 6.0%

Others 15.8%

Re

22.1C

21.7C

22.4C

21.6C Commercial 29.5% Residential 32.6%

3T10

3T11

3T12

3T13

3T10 3Q10

3T11 3Q11

3T12 3Q12

3T13 3Q13

Comercial 29%

1Note:

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

Total Market
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET QUARTER

+1.7%

5,754
+0.9% +2.5%

5,897

840

899

1,801

1,818

1,808 181

1,854 207

-0.2%

+3.8%

983

982

4,645 894 47 928 48 880

4,682

1,627

1,647 613 370 643

847

338
3Q13 3T13 3Q12 3T12 3Q13 3T13
3T12 3Q12 3T13 3Q13

3Q12 3T12

3Q13 3T13

3Q12 3T12

3Q13 3T13

3Q12 3T12

RESIDENTIAL

COMMERCIAL

INDUSTRIAL

OTHERS

TOTAL

CAPTIVE

FREE

Energy Consumption
Distribution 9 Months
28,0

27,5
27,0 26,5 26,0 25,5

TOTAL MARKET (GWh)

+2.3% +2.7%
Out
9M10 9M11 9M12 9M13

r os

re 1 5 % Free Cat iv o Others s 15.0%

Li v

15.0%

16,729

17,259

17,419

17,884

15%

I nd u s tr ial Industrial 5.8% 6 %

25,0
24,5 24,0

24.4C

23,5
23,0 9M10

24.0C
9M11

24.3C

23.9C
9M13

9M12

Co m erc Commercial ial 2 9 % 29.5%

i de n c ial Residential 35% 34.7%

Res

9M10 9M10

9M11 9M11

9M12 9M12

9M13 9M13

1Note:

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

Collection
PCLD/Gross Revenue (Billed Sales) PCLD/Gross Revenue 12 Months

(Billed Sales) - 12 Months

3.2% 2.8%

COLLECTION RATE BY SEGMENT 9 MONTHS

102.0% 102.6%

3.2% 3.0% 3.0% 2.9%

2.4%

2.6%

2.6%

98.8%

101.1%

97.5%

100.9%

99.7%

100.3%

2.4%

1.9% 1.5%
1.3% 1.3%

Jun-12

Mar-12

Dec-11

Dec-12

Sep-11

Sep-12

Mar-13

Jun-13

PCLD/ROBPCLD / Gross Non-recurring Revenue provisions (4Q12)

Total Total Varejo Retail Grandes Clientes Large Clients Poder Pblico Public Sector

Non recuring provision (4Q12)

9M12

9M12

9M13

9M13

COLLECTION RATE - 12 MONTHS

98.3% 99.6%

mar-12 Sep/12

mar-13 Sep/13

Sep-13

Loss Prevention
LOSS (12 MONTHS)
- 1.7%

45.4% 43.1%

44.9%

44.2%

43.7% 32.0%

INSTALLED METERS (Thousand Units)

410 341 227 30 122 80 2 78 2009 7 115 197 272 297 79

89

8,057

8,584

8,647

8,582

8,552

5,615

6,007

6,029

5,953

5,905

2,432 Sep/12
s et /12

2,577 Dec/12
dez /12

2,618 Mar/13
mar/ 13

2,629 Jun/13
jun/ 13

2,647 Sep/13
s et /13

2010

2011

2012

Sep/13

2009

2010

2011

2012

set/13

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

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

Losses Combat Actions APZ Results

Location
Curicica Realengo Cosmos Sepetiba Caxias 1 e 2 Belford Roxo 1 e 2 Vigrio Geral Caxias 3 Nova Iguau 1 Nova Iguau 2 Nilpolis Nilpolis Convencional Ricardo de Albuquerque Mesquita Cabritos/Tabajaras/Chapu Mangueira/Babilnia Coelho da Rocha Batan Total

Number of Clients (sep/13)

13,125 10,182 38,132 19,857 13,935 20,436 16,198 17,675 33,129 20,756 10,388 11,089 25,701 9,038 6,387 17,738 8,625 292,391

Acumulated Losses Before

38% 38% 48% 57% 59% 63% 35% 43% 49% 46% 42% 38% 35% 51% 57% 41% 62% 47.7%

Mar-13
12.1% 16.9% 22.8% 33.5% 19.5% 32.4% 16.1% 25.2% 31.9% 25.0% 28.8% 19.5% 38.4% 11.9% 24.3%

Jun-13
11.9% 15.8% 20.8% 31.5% 22.9% 29.1% 15.8% 22.9% 31.5% 24.5% 28.5% 14.0% 18.1% 34.0% 11.6% 16.8% 9.5% 22.5%

Sep-13
11.2% 15.0% 19.3% 30.6% 25.8% 26.6% 15.2% 20.7% 29.9% 23.5% 27.9% 13.7% 16.3% 30.2% 11.5% 14.3% 9.6% 21.2%

Collection (sep/13)
98.8% 98.6% 105.3% 97.4% 95.1% 95.5% 99.5% 98.4% 97.7% 96.8% 94.9% 97.2% 97.9% 95.8% 97.1% 95.8% 105.2% 98.6%

-26.5 p.p.

Losses Combat Actions Pacified Communities Results

By September, of the 34 pacified communities, Light is already present in 17 of them, having already completed the network reform in 9 of them:
Year of conclusion
2009 2010 2010 2011 2011 2012 2013 -

Location
Santa Marta Cidade de Deus 1 Chapu Mangueira Babilnia Cabritos Tabajaras Formiga Batan Borel Total

Acumulated Losses Before Mar-13 Jun-13 Sep-13

95.00% 52.10% 62.70% 62.30% 73.30% 61.80% 60.50% 64.10% 8.22% 14.45% 14.75% 12.47% 9.37% 10.66% 31.06% 14.60% 5.07% 14.45% 8.55% 11.76% 10.75% 8.87% 26.13% 12.30% 8.30% 11.43% 14.60% 12.80% 10.12% 11.47% 9.71% 11.20%

Timely Payment (sep/13)

97.61% 95.69% 101.88% 97.05% 97.18% 95.74% 93.10% 105.24% 88.96% 97.10%

-52.9 p.p.

Net Revenue
NET REVENUE BY SEGMENT (3Q13)*
Commercialization
9.9%

NET REVENUE (R$MN)

+3.4%

Generation
7.6%

000,0

5,415.5
470.0
+0.6%

5,602.3 455.2

Distribution
82,5%**

500,0

000,0

500,0

000,0

1,726.7 170.3

1,737.6 122.4
+3.8%

+4.1%

* Eliminations not considered

4,945.6

5,147.1

** Construction revenue not considered

500,0

000,0

1,556.4 3Q12 2T12 3T12

1,615.2 3Q13 2T13 3T13 9M12 1S12 9M12 9M13 1S13 9M13

NET REVENUE FROM DISTRIBUTION (3Q13)

(Free + Concessionaires) 8.3%

500,0

Network Use (TUSD)

Residential
40.9%

Construction Revenue Revenue w/out construction revenue

Others (Captive) 13.0%

Industrial
6.5%

Commercial
31.3%

Operating Costs and Expenses

Generation and Commercialization: R$ 206.2
(18.2%)

COSTS (R$MN)* 3Q13

DISTRIBUTION MANAGEABLE COSTS (R$MN)

+3.4%

954.3 Non manageable (distribution**): R$ 614.6

+4.3%

987.0

Manageable (distribution): R$ 311.5

(27.5%)

(54.3%)

298.6

311.5

* Eliminations not considered ** Construction revenue not considered

3T12 3Q12

3T13 3Q13

9M12 9M12

9M13 9M13

R$ MN PMSO Provisions
PCLD Contingencies

3Q12 178.5 52.3

39.3 13.0

3Q13 182.5 41.0

37.1 3.9

Var. 2.3% -21.6%

-5.6% 70.0%

9M12 516.0 222.9

173.2 49.7

9M13 568.8 152.8

114.6 38.3

Var. 10.2% -31.4%

-33.8% -22.9%

Depreciation Other operational/ revenues expenses Total

69.3 1.5 298.6

86.0 -1.9 311.5

24.1% 4.3%

212.9 -2.5 954.3

250.5 14.8 987.0

17.7% 489.8% 3.4%

EBITDA
Ge r

CONSOLIDATED EBITDA (R$MN)

+40.3%

1,355.1

965.6
+161.1%

722.0

(EBITDA Margin: 42.7%)

Distribution 84.1%

(EBITDA Margin: 79.0%)

Generation 14.3%

276.6
D 84 istrib ,1% ui ; 8 o 4,1 ; 3%

Commercialization 1.6%
(EBITDA Margin: 6.8%)

3Q12 3T12

3Q13 3T13

9M12 9M12

9M13 9M13

*Eliminations not considered

Co

me 1,6 rcia %; liza 1,6 0 % o;

EBITDA BY SEGMENT* 3Q13

a 1 4 o; 1 ,27 4,3 % %;

EBITDA
Ajusted EBITDA 3Q12 / 3Q13 (R$ MN)

- 0.6% + 161.1% (8) 303 100 59 277

Ativos e EBITDA Receita Custos No Custos Provises EBITDA Ativos e EBITDA Passivos 2T11 Lquida Gerenciveis Gerenciveis 2T12 Passivos Ajustado Regulatrios (PMSO) 2T12 EBITDA Regulatrios Regulatory Adjusted Net NonRegulatory EBITDA CDE Fund Manageable Provisions Others

12

(22) (329)

119 395

722

393

EBITDA Ajustado 2T11 Adjusted

EBITDA 3Q12

Assets and Liabilities

3Q12

Revenue

Manageable Costs

Costs (PMSO)

3Q13

Assets and Liabilities

EBITDA 3Q13

EBITDA
Ajusted EBITDA 9M12 / 9M13 (R$ MN)

+ 7.6% + 40.3%

(60) 192 1,158 202 (552) 765

71

(36) 1,355

(109) 1,246

966

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

Receita Lquida

EBITDA 9M12

Assets and Liabilities

9M12

NonRevenue Manageable Costs

Custos No Custos Provises EBITDA Ativos e EBITDA Gerenciveis Gerenciveis 2T12 Passivos Ajustado (PMSO) Provisions Others 2T12 EBITDA Regulatrios Regulatory Adjusted CDE Fund Manageable

Costs (PMSO)

9M13

Assets and Liabilities

EBITDA 9M13

Net Income
ADJUSTED NET INCOME Lucro Lquido e Lucro Lquido 3Q12 / 3Q13 (R$ MN) Ajustado 1T12/1T13 - R$ Milhes
- 35.9%

+ 282.1%

(9) (182) (17) 445 (217) 78 162 84

EBITDA Lquida EBITDA
Receita

321
104
Resultado Outros Gerenciveis Gerenciveis Financial Impostos Taxes Others Financeiro (PMSO) Result
Custos No Custos Provises

EBITDA Ativos e EBITDA LL Ajustado Ativos e 3T12 Ajustado 2T11 Adjusted Net Passivos Regulatory 3Q12 3T12 passivos 2T11 Regulatrios Income Assets and

3T13 2T12 3Q13

EBITDA -

3Q12

Regulatrios Liabilities

Ativos e LL Ajustado Passivos Ajustado Regulatory Adjusted Net passivos 3T13 Regulatrios 2T12 Assets and Income Regulatrios Liabilities 3Q13

Ativos e

EBITDA

Net Income
ADJUSTED NET INCOME 9M12 / 9M13 (R$ MN)

- 1.1%

+ 73.6%

8 (166) 390 (36) (72) 458 264

Receita Custos No Custos Resultado Gerenciveis Impostos Gerenciveis Financial Taxes Financeiro (PMSO) Result Provises EBITDA Ativos e EBITDA 9M13 Ativos e LL Ajustado 2T12 Passivos Ajustado 9M13 Regulatory Adjusted Net passivos 1S13 Regulatrios 2T12 Assets and

127
391 387

EBITDA Ativos e EBITDA LL Ajustado Ativos e 9M12 Ajustado 2T11 Adjusted Net Passivos Regulatory 9M12 - 1S12 Regulatrios passivos 2T11 Income Assets and

EBITDA Lquida EBITDA

Outros Others

9M12

Regulatrios Liabilities

Regulatrios Liabilities

Income 9M13

Indebtedness
Custo Real NET DEBT
Without Pension Fund

AMORTIZATION SCHEDULE* (R$ MN) Average Term: 4.3 years

773 1,009 802

4,056.1

4,151.6 2,68 150

2010
R ea l CustoSep/13
2013 2014 2013 2014 * Principal only 2015 2015

2,62

557

666

437

441

441

545

2009

3T10

Jun/13

2016 2016

2017 2017

2018 2018

2019 2019

2020 2020

2021 2021

Aps After

9M09

9M10

2021

2021

Net Debt / EBITDA

2010
Custo Nominal

2011

2012 COST OF DEBT

11.08% 4.87%

11.03% Custo Real 4.25%

IPCA 10.4%
8.83% 2.81% CDI 72.8%

U$/Euro 0.2%

TJLP 15.1% Others 1.5%

8.21% 2.24%

2010 2007
1

Custo Nominal Nominal Cost

2009

2011 2008

2012 2009 Custo Real Real Cost

2010 2011

sep/13 set/10

Reclassified to reflect the deconsolidation results of jointly controlled companies.

2012

*ConsideringHedge

Investments
CAPEX (R$ MN) CAPEX BREAKDOWN (R$ MN) 9M13
Develop. of Distribution System 253.5

928.6 700.6 563.8 153.8 796.8 102.7

-18.3%

527.8 45.8

482.2 88.3 393.9 Others 7.1 9M13 Losses Combat 133.4

116.9

181.8 774.8 518.8 694.1

446.9

482.0 302.3

2009 2009 2009

2010 2010 2008 2010

2011 2011 2009 2011

2012 2012 9M11 2010

9M12

9M12 2011

9M11

9M12

Generation 14.1 Administration 20.3

Investments in Electric Assets (Distribution)

Commerc./ Energy Eficiency 53.8

Tariff Review Results

3rd Cicle

Tariff Review nov/2013

+ 9.08%

+3.48% + 2.46% +2.28%

+ 3.65%

Parcel A: Non Manageable Costs

Structural Repositioning 2013

Financial Additions 2013

Financial Additions 2012

Average perception for consumers

- 6.62% Parcel B: Manageable Costs

Tariff Review Highlights

REGULATORY EBITDA
EBITDA
R$ MN

PMSO
R$ MN

GROSS RAB
824

NET RAB

1,048

1,218

PMSO
583

Rec Bruta
8,077

R$ MN

11,974

Rec Lquida
4,673

R$ MN

6,711

2008

2013

2008

2013

2008

2013

2008

2013

PARCEL B
R$ MN

Cresc Mercado
2,111

DELINQUENCY
0,95%

fator X

X FACTOR
1.22%

fator X

GROSS WACC

1,698

Inadimplncia
0,90%

15.08% 11.36%

0%

2008

2013

2008

2013

2008

2013

2008

2013

Remuneration Base and OPEX

1E+09

TOTAL ASSET BASE R$ 14,670 BN

900000000

OPERATIONAL COSTS* R$ 908 MN Delinquency R$ 83 MN Annuities R$ 96 MN

Special Obligations + 100% Depreciated Assets + IAS Integral

R$ 2.695 BN 800000000

700000000 Obrigaes especiais + bens depreciados

Inadimpl

Net RAB R$ 6,711 Bi

Base remunerao reg. Lquida

600000000 depreciao acumulada - bens depreciados

Anuidad

Reference Company R$ 728 MN

Empresa

Gross RAB 500000000 R$ 11.974 BN Accumulated Depreciation 100% Depreciated Assets R$ 5.263 BN
300000000

400000000

* Corrected by productivity factor

Non-Technical Losses
40,41% 39,92%
39,13%

40,41% 38,33%
36,41%

34,49%
33,00%

31,80%

31,27%
30,60%

30,95%
29,40%

30,53%

30,11%

29,69%

28,20%

27,01%

25,81%

2013

2014

2015

2016

2017

2018

Regulatory NT Losses/LV (Flexible) Real NT Losses/LV (forecast Light, Ref. August)

Regulatory NT Losses/LV (Final) Regulatory NT Losses/LV (AP)

Regulatory NT Losses/LV w/ Penalty

Conclusions

Light at the beginning of a new cycle:

Positive tariff revision and aligned with the characteristics of the concession area; Most of the high investments in the last cycle (R$2.7 bn) were recognized in the Remuneration Base; Loss level on the way down: Successful strategy based on Zero Loss Areas + Electronic Metering + Pacifying Police Units; Additional funds allocated exclusively to combating losses assured in the Tariff Revision, with no impact on debt. Generation remains an important growth driver for the group through the repricing of existing energy and growth in new projects;

Positive economic outlook in the concession area: investments in infrastructure and higher security;
Continuous pursuit of operational efficiency and improved quality.

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.

Contacts
Joo Batista Zolini Carneiro
CFO and IRO

Luiz Felipe Negreiros de S

Superintendent of Finance and Investor Relations +55 21 2211 2814 felipe.sa@light.com.br

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

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