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Corporate Presentation

Corporate Presentation. April 2013. Light Holdings. 2. Rankings Among the largest players in Brazil. INTEGRATED² Net Revenues 2012 – R$ Billion. DISTRIBUTION¹ Energy Consumption in Concession Area ( GWh ) - 2012. 18.5. 37,626. 15.0. 24,714. 11.8. 22,737. 8.5. 21,467. 20,054.

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Corporate Presentation

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  1. CorporatePresentation April 2013

  2. Light Holdings 2

  3. RankingsAmongthelargest players in Brazil INTEGRATED² Net Revenues 2012 – R$ Billion DISTRIBUTION¹ Energy Consumption in Concession Area(GWh) - 2012 18.5 37,626 15.0 24,714 11.8 22,737 8.5 21,467 20,054 6.9 15,018 6.6 GENERATION PRIVATE-OWNED COMPANIES² Installed Hydro-generation Capacity (MW)– 2012 5,560 2,658 1 – Source: Captive market 2 – Source: Companies reports * Considers the 9 MW of Renova’s SHPs 2,241 2,219 2,012 877 * 3

  4. Shareholders Structure • 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 4

  5. Corporate Governance General Assembly Fiscal Council Board of Directors Finances Committee Human Resources Committee Auditors Committee Governance and Sustainability Committee Management Committee Chief Executive Officer Paulo Roberto R. Pinto Chief Financial and Investor Relations Officer ChiefDistributionOfficer Chief Energy Officer Chief HR Officer Andreia Ribeiro Junqueira João B. Zolini Carneiro José Humberto Castro Evandro L. Vasconcelos Chief Legal Officer Corporate Management Officer Chief Business Officer Chief Communications Officer Paulo Carvalho Filho Evandro L. Vasconcelos* Luiz Otavio Ziza Valadares Fernando Antônio F.Reis Interim* LGSXY ADR-OTC 5

  6. LIGHT Distribution Business 6th largest energy distribution company in Brazil (2011) • 4.1 million clients (serving 10 million people) • Energy sales (2012) – 23,384 GWh • 70% of the consumption of Rio de Janeiro state (Brazil’s 2nd GDP) 6

  7. EnergyConsumptionDistribution – Year TOTAL MARKET (GWh) ¹ +2.9% Free14% +2.0% Industrial7% 23,384 22,932 22,384 21,492 Others15% With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 3.0% over 2011. 25.0ºC 24.5ºC 24.3ºC 24.0ºC Residential35% Commercial29% 2009 2010 2011 2012 1Note: To preserve comparability in themarketapprovedbyAneel in thetariffadjustmentprocess, thebilledenergyofthefreecustomers Valesul, CSN and CSA wereexcluded in viewofthesecustomers’ plannedmigration to theBasic Network. 7

  8. Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – YEAR +2.0% 23,384 22,932 3,330 3,056 -3.2% +9.1% 8,418 8,149 7,599 6,967 743 -0.5% +3.0% 20,054 657 19,877 3,944 3,925 3,712 3,603 191 185 6,856 6,310 2,213 2,396 3,521 3,417 1,731 1,528 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 OTHERS TOTAL RESIDENTIAL INDUSTRIAL COMMERCIAL FREE CAPTIVE 8

  9. Prospects for State of Rio Investments of R$ 211.5 billion in the State of Rio de Janeiro¹ Events Schedule Period 2012-2014 Tourism R$ 1.8 bn 0.9% • ConfederationsCup • World Youth Day • World Cup • Olympics • Paralympics Oil R$ 107.7 bn 50.9% Jun, 15 to 30/2013 Jul, 23 to 28/2013 Jun, 12 to Jul, 13/2014 Aug, 5 to 21/2016 Sep, 7 to 18/2016 Others R$ 1.9 bn 0.9% Olimpic Facilities R$ 8.6 bn 4.1% Transformation Industry R$ 40.5 bn 19.1% Infrastructure R$ 51.0 bn 24.1% ¹Source: Firjan (Industry Federation of Rio de Janeiro) 9

  10. Economic activity leading to more demand The State of Rio de Janeiro will attract $ 250 billion as investments by 2016 ¹ • MRS (ND) • Nestlé (3MW) • AMBEV (ND) • NeoBus(10MW) • Reluz (ND) • Embelleze(5MW) • Coquepar(42MW) • Procter& Gamble (10MW) • Alpargatas (ND) • RHI (5MW) • Lavazza(3MW) • Ajebras(5MW) • Petrobras (15MW) • CSN (100MW) • Gerdau (30MW) • Usiminas (20MW) • LLX (40MW) • Base Naval(25MW) • Hotel Comfort (3MW) • Centro Tecnológico Fundão (ND) Rio de Janeiro • Shopping VillageMall (7MW) • Edifício TishmanSpeyer (5MW) • Expansão Via Parque (2MW) • Casa Granado (3.5MW) • Hospital São Lucas (4MW) • Metrô Ipanema (8MW) • FlowServe (11MW) • AlogData Center (12MW) • BioManguinhos (ND) • Hermes (3MW) • Votorantin (ND) • Ongoing(ND) • Bunge (ND) • AMBEV (2MW) • GE (6MW) • Shop. Metropolitano (10MW) • Maracanã (ND) • Porto Maravilha (ND) • Morar Carioca (ND) • Aeroporto Tom Jobim (5MW) • Estaleiro Inhauma (ND) • Atento (2MW) • Expansão Nova América (4MW) • Expansão Norteshopping (3MW) • Gerdau (90MW) • Shop. Campo Grande (3MW) • RollsRoyce (3MW) 10 ¹Source: Associação Brasileira de Municípios – ABM website.

  11. Collection rate bysegment YEAR 102.6% 102.5% 101.0% 98.8% 98.0% 96.4% 97.4% 94.3% Total Retail Large Clients Public Sector 2011 2012 11

  12. Losses Reflects exclusion of long term delinquent customers from the billing system,according to Resolution 414 byAneel. 12 months 45.4% 43.1% 42.4% 42.2% 42.1% 41.8% 41.6% 41.3% 41.2% 40.7% 40.4% 33.3% 8,626 8,047 7,838 7,619 7,544 7,665 7,549 7,543 7,493 7,627 7,582 63% Non-RiskyArea 5,615 6,097 5,457 5,352 5,316 5,330 5,312 5,326 5,247 5,278 5,229 37% RiskyArea 2,432 2,529 2,349 2,335 2,381 2,197 2,328 2,215 2,231 2,214 2,293 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Technical losses GWh Non-technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory 12

  13. 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 Shielded grid Medium voltage Medium voltage Centralized meter Low voltage Low voltage 9 m 3 m Mechanical Meter Display 13

  14. New Technology Program Meters Installed (Thousands) 341 208 38 38 110 303 38 170 72 • 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 inappropriate interference in networks 2012 2011 2010 CENTRALIZED INDIVIDUAL (ITRON) (LANDIS GYR. CAM and ELSTER) 14

  15. New Technology Results Individual Losses (before): 26% Losses (current): 7% 15

  16. New Technology Results Centralized Losses (before): 48% Losses (current): 14% 16

  17. Zero Losses Area Area: Nova Cidade Neighborhood - Nilópolis ¹ Nov/10² Dec/11 17

  18. Losses Reduction - Business Case An example NEW METER INSTALLATION REAL CONSUMPTION 300 kWh ENERGY SAVED 100 kWh LOST ENERGY 200 kWh BILLED CONSUMPTION INCREASE BILLED CONSUMPTION 100 kWh 100 kWh OTHER EFFECTS (BY-PRODUCTS): BAD DEBT PROVISION REDUCTION OPERATIONAL COSTS REDUCTION CAPEX GOES TO THE RAB 18

  19. Transformation of risky areas 19

  20. Transformation of risky areas Alemão Batan Macacos Salgueiro Andaraí S. Marta Formiga Borele Casabranca Mang.e Babil. Tabaj. e Cabr. Cidade de Deus 64.7 thousandclientsinsidepacifiedcommunitieswithnewmetersand network Cantag. e Pavãoz. 20

  21. GENERATION BUSINESS

  22. Installed Capacity 868 MW 51% 100% SHP Paracambi 13 MW Paraiba do Sul River HPP Ilha dos Pombos187 MW HPP Ilha dos Pombos LajesComplex 100% RJ SP HPP Santa Branca HPP Santa Branca 56 MW 100% 100% 100% HPP Fontes Nova 132 MW HPP Underground NiloPeçanha - 380 MW HPP Pereira Passos 100 MW 22

  23. Re-pricing of existing energy Conventional Energy Balance Assured energy (MW average) Contracted Energy (Free) Contracted Energy (Regulated)² Hedge Available Energy ¹Database january. 2012 ² Averageprice to RegulatedMarket (dec/11): R$ 75/MWh 23

  24. Generation Expansion Paraiba do Sul River Lajes Complex RJ • HPP Itaocara • InstalledCapacity: 151 MW • The construction is to be started by theendof 2012. • CommercialOperational Start: 2nd halfof 2015. • PreliminaryLicensealreadyissued. SP • SHP Lajes • InstalledCapacity: 17 MW • The construction is to be started by the 2nd halfof 2012. • Operational Start: 2nd halfof 2014; Installation License already issued. 24

  25. Renova • ShareholderStructureDecember2012 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. Controlling Shareholders 64.6% CS Light 32.3% CS 0% PS RR Participações 32.3% CS 0% PS RR Participações 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 • Company’sPortfolio • 41.8 MW of SHPs in operation under the PROINFA contract • 294.4 MW ofwindenergyunderconstruction to start theoperation in Jul/2012 • 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 Light 21.99% • Location Wind Farms Inventory (SHPs) BasicProjects (SHPs) 25 • Share of RR ParticipaçõesSA out of the control block

  26. Renova - Contracts 26

  27. Belo Monte - Overview • Technical data on the concession: • Concession period – 35 years • End of concession – August 25, 2045 • Technical data on the project: • Installed capacity – 11,233 MW • Main engine room – 11,000 MW • Auxiliary engine room – 233 MW • Assured Energy (Average MW) – 4,571 MW • Reservoir – 516 Km² • Flooded area/generation ratio of 0.05 Km²/MW • 5,000 families affected • Estimated project cost (April 2010) – R$ 25.8 billion • Other Informations: • AmazôniaEnergia 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. • – Tender 30 years, fixed installments. 85% of items financiable. PSI line. • AmazôniaEnergia’s equity in the project estimated at R$ 150 million (Apr. 2010), to be disbursed over 6 years. • Expansion of generation portfolio: • Increases Light’s total generation portfolio by 280 MW • Terms for sale of electricity generated already set. • Regulated Market: 70%; Free Market: 20%; Self-producers: 10%. Norte Energia S.A. – ShareholdersProfile 51.0% CS 0.0% PS 49.0% CS 100.0% PS 74.5% of total stock 25.5% of total stock Amazônia Energia Participações S.A 9.77% Norte Energia S.A (Belo Monte) 27

  28. Guanhães TOTAL CAPEX R$ Million 269.2 Light Energia 60.2 Equity Cemig GT 57.8 151.2 Debt BNDES 28

  29. New Generation Projects Investments in Renova, Belo Monte andGuanhães. In linewithourstrategyofgrowing in thegeneration business InstalledCapacity (MW) + 59.8% 22 1,505 280 175 77 9 74* 942 13 855 Current Capacity (+) SHP Paracambi¹ Installed Capacity (+) SHP Lajes¹ (+) HPP Itaocara¹ CapacityAfterExpansion (+) Belo Monte³ (+) Renova² (+) Renova² (+) Guanhães¹ ¹ Considering 51% stake ² Considering21.9% stake ³ Considering 2.5% stake 29 * 9 MW SHP + 65 MW Wind Farm (since jul/12)

  30. RESULTS

  31. Net Revenue NET REVENUE BY SEGMENT (2012)* NET REVENUE (R$MN) Commercialization4.1% Generation6.3% +9.6% Distribution89.6%** 7,613.1 6,944.8 669.3 794.7 * Eliminationsnotconsidered ** Constructionrevenuenotconsidered +19.2 12.9% NET REVENUE FROM DISTRIBUTION (2012) 2,162.9 6,943.8 1,815.1 6,150.1 199.3 237.8 24.5% 1,963.6 Network Use (TUSD)(Free + Concessionaires)9.4% 1,577.3 Residential41.1% 4Q11 4Q12 2011 2012 Others (Captive) 12.6% Construction Revenue Industrial6.8% Revenue w/out construction revenue Commercial 30.1% 31

  32. OperatingCostsandExpenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 2012 -12.4% 1,258.9 1,103.4 Nonmanageable (distribution):R$ 4,410.8 (74.0%) -46.7% 279.7 149.1 GenerationandCommercialization:R$ 445.1 (7.5%) 2011 4Q12 2012 4Q11 Manageable (distribution):R$ 1,103.4 (18.5%) * Eliminationsnotconsidered ** Constructionrevenuenotconsidered 32

  33. EBITDA EBITDA BY SEGMENT* 2012 CONSOLIDATED EBITDA (R$MN) +17.7% 1,456.2 Distribution 75.2% (EBITDA Margin: 17.4%) 1,237.8 +49.5% 483.9 323.6 Generation23.0% (EBITDA Margin: 76.4%) Commercialization 1.9% (EBITDA Margin: 9.5%) 4Q11 4Q12 2011 2012 *Eliminationsnotconsidered 33

  34. EBITDA EBITDA – 2011 / 2012(R$ MN) + 34.5% + 17.7% 794 325 1,782 381 1,456 87 1,325 1,238 (175) (706) (75) Otheroperational/ revenues Net Revenue Non-Managable Costs Managable Costs (PMSO) Provisions Adjusted EBITDA 2011 Regulatory Assets and Liabilities EBITDA2011 EBITDA2012 Regulatory Assets and Liabilities Adjusted EBITDA 2012 34

  35. Net Income ADJUESTED NET INCOME 2011 / 2012 (R$ MN) + 59.9% + 24.0% 639 215 218 6 424 58 399 342 (85) (57) EBITDA Financial Result Taxes Others Adjusted Net Income 2011 Regulatory Assets and Liabilities 2011 2012 Regulatory Assets and Liabilities Adjusted Net Income 2012 35

  36. Dividends * *Based on Net Income of the year. before IFRS adjustments 36

  37. Indebtedness leverage Net Debt¹ (R$ MM) and Net Debt / EBITDA Rating(AA-(bra)) Dec/11 Rating(brA + ) Rating(Aa2.br) InvestmentGrade(brA) 4,273 3,383 2.9 2.7 1,947 1,637 1,580 1.2 1.2 1.1 2008 2009 2010 2011 2012 Net Debt Net Debt/ EBITDA 37 ¹ Net debt = total debt (excludes pension fund liabilities) – cash

  38. Indebtedness The pre payment of R$ 375 million in October reduced the cost of debt and extended the amortization schedule AMORTIZATION SCHEDULE* (R$ MN) NET DEBT 1,796 AverageTerm: 4,2 years 4,273.1 3,383.2 886 784 671 481 2.9 2.7 2014 2015 After2017 Dec/11 Dec/12 2013 2016 Net Debt / EBITDA * Principal only Others 2.0% COST OF DEBT TJLP 25.1% 11.08% 11.03% 9.84% 8.21% 5.30% 4.87% 4.25% US$/Euro 0.8% 2.24% CDI/Selic72.1% 2009 2010 2012 2011 Nominal Cost Real Cost 38 *ConsideringHedge

  39. Investments CAPEX BREAKDOWN(R$ MN) 2012 CAPEX (R$ MN) Losses Combat 199.8 928.6 Quality Improvement 122.7 796.8 153.8 700.6 102.7 563.8 546.7 181.8 116.9 92.9 774.8 Develop. of Distribution System 215.7 694.1 518.8 Others 206.8 453.8 446.9 2012 2010 2011 2009 2008 Commerc./Energy Eficiency26.1 Generation Maintenance 23.7 Investments in Electric Assets (Distribution) Generation Projects 1.9 39

  40. Why invest in Light? Economic Transformation in the Concession Area • Major upcomingevents • Integrationof favelas • Pro-business environment • New plants investments • Expansion of the existing ones • Market growth RepricingofExistingEnergy • NewPPAsstarting in 2013 and2014 • Revenuesincreasewith no aditionalcosts. • Veryactive trading subsidiary Best-in-ClassCorporateGovernance • Listed in “Novo Mercado” of Bovespa; • BoardCommitteesveryactive • Included in theSustainability Index (ISE) of Bovespa for thesixthyear. Energy LossesReduction • Progress in theTechnologyProgram • New network andmeters in thepacified favelas • Smartmeteringdevelopment • “Zero LossesArea” Program Growth in theGeneration Business • Investmentin Renova. Belo Monte and Guanhães (total of477 MW) • SHP Lajes underconstruction. • HPP Itaocara Dividendtrack Record • SoundDividendPolicy: minimum 50% of net income; • Averagepayoutsince 2007: 91% 40

  41. Regulatory Framework • The Provisional Measure 579 was enacted on September 11, 2012 and thereafter converted into Law 12,783 providing for electric power concessions, reduction of sector charges and reasonable tariffs which although these have not directly affected Light, as its concessions will expire only in 2026, resulted in the following developments: • on January 24, 2013, Resolution issued by Aneel approved an average reduction of 19.63% in Light SESA’s tariffs. For residential consumers (low voltage), the reduction was 18.10%. The measure will have no impact on the company’s result or cash flow since it reflects an equal reduction in costs. • on the same date, the distribution of power plants energy quotas was ratified, which had their concession renewed: • (i) but lower to the distribution companies’ contracting needs, thus, causing an involuntary exposure, and only for Light it accounted for average 156 MW; and • (ii) made distribution companies to start sharing the hydrological risks, which before was only supported by generation companies • As of October 2012, an adverse hydrological situation was characterized in Brazil’s electricity sector, the basis of which is mainly hydric, enforcing the System National Operator to dispatch all the thermal power plants available in the system, thus significantly rising the costs of distribution companies by increasing fuel expenditures in availability agreements, increasing System Service Charges due to energy security and acquisitions on the spot market in order to answer that involuntary exposure. 41

  42. Regulatory Framework • On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of non-manageable costs related to thermal plant dispatch, involuntary exposure and hydrological risk not covered by the 2013 tariff, as follows: • Eletrobrás will transfer the resources of Energetic Development Accout (CDE) directly to the concessionaires on the same dates and to the same accounts as the respective monthly transfers of the Electricity Trading Chamber (CCEE) financial guarantees. • Aneel will publish the monthly dispatches with the amounts to be transferred by Eletrobrás via the CDE (energy development account). • System Service Charge (ESS) – The monthly transfer will be determined by the difference between the amounts settled in the CCEE and the tariff coverage defined in the last adjustment. • Involuntary Exposure associated with the quotas – The monthly CDE transfer will cover the difference between the difference settlement price (PLD) and the acquisition tariff of the repositioning amount recognized in Light’s last tariff adjustment. • Hydrological Risk - The net monthly amount settled in the CCEE will be transferred directly via the CDE. • The remaining energy purchase and ESS costs not covered by the decree, including fuel costs of availability contracts not included on tariffs, will continue going towards the formation of the regulatory assets and liabilities (CVA) to be determined in Light’s November/13 Tariff Revision. • The Public Hearing opened for regulating decree proposes a transfer rate until 3% of the balance of CVA, the rest will be payed "in cash" from CDE funds. 42

  43. ImportantNotice 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. 43

  44. Contacts João Batista Zolini CarneiroCFO and IRO Gustavo WerneckIR Manager + 55 21 2211 2560gustavo.souza@light.com.br www.light.com.br/ri 44

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