Conference Call

Conference Call3rd Quarter 2013

Highlights Total energy consumption was 1.7% higher than in 3Q12. Collection in 9M13 stood at 101.1% of billed consumption, 2.3 p.p. up on 3Q12. The

provision for doubtful accounts fell from 2.4% to 1.3% in the last 12 months; Non-technical losses/low-voltage market in the last 12 months closed the quarter at

43.7%, 1.7 p.p. down since December 2012;

OPERATING

Net Revenue increase in 3.8% (without construction revenue), which reached R$ 1,615.2 million in 3T13. Growth in all segments, especially the commercialization, which grew 102.5%;

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.

FINANCIAL

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.

Highlight for the Net RAB of R$ 6.7 billion and non-technical losses of 40.41%.REGULATORY

Industrial6%

Residencial33%

Comercial29%

Outros Cativos16%

Livre16%

Energy Consumption Distribution – Quarter

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 (GWh) ¹

Industrial6.0%

Free16.1%

Others15.8%

Commercial29.5%

Residential32.6%

3T10 3T11 3T12 3T13

3T10 3T11 3T12 3T13

+1.7%

5,4865,299

22.4ºC 21.6º

C

3Q11

5,1445,581

3Q10

21.7ºC22.1ºC

+2.8%

3Q12 3Q13

Total Market

RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL

3Q12 3Q13

ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER

3Q12 3Q13 3Q12 3Q13 3Q12 3Q13 3Q12 3Q13

FREECAPTIVE

3T12 3T13 3T12 3T13 3T12 3T13 3T12 3T13 3T12 3T13

+1.7%

4,6454,682

5,486

840 899

5,581

+3.8%

847 880

89447 48

928

+2.5%

1,808

181 207

1,854

370 338

983

613 643

982

+0.9%

1,801 1,818-0.2%

1,627 1,647

Energy Consumption Distribution – 9 Months

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 (GWh) ¹

Industrial5.8%

Free15.0%

Others15.0%

Commercial29.5% Residential

34.7%

9M10 9M11 9M12 9M13

23,0

23,5

24,0

24,5

25,0

25,5

26,0

26,5

27,0

27,5

28,0

9M10 9M11 9M12 9M13

9M10

9M11

9M12

9M13

+2.7%

17,419

17,259

24.3ºC 23.9º

C

9M11

16,729

17,884

9M10

24.0ºC24.4º

C

+2.3%

9M12 9M13

Industrial6%

Residencial35%

Comercial29%

Outros Cativos15%

Livre15%

Total Varejo Grandes Clientes Poder Público

9M12 9M13

Collection

COLLECTION RATE - 12 MONTHS

COLLECTION RATE BY SEGMENT9 MONTHS

9M12

9M13

Total Retail Large Clients

Public Sector

98.3% 99.6%

Sep/12 Sep/13

98.8% 101.1% 97.5% 100.9

% 99.7%102.0% 102.6% 100.3

%

mar-12 mar-13

3.2%3.0% 3.0%

2.9%

2.4%

1.9%

1.5%1.3% 1.3%

2.4%

3.2%

2.8%2.6% 2.6%

Sep

-11

Dec

-11

Mar

-12

Jun-

12

Sep

-12

Dec

-12

Mar

-13

Jun-

13

Sep

-13

PCLD/Gross Revenue (Billed Sales)12 Months

PCLD/ROB Non-recurring provisions (4Q12)

PCLD/Gross Revenue (Billed Sales) - 12 Months

PCLD / Gross Revenue

Non recuring provision (4Q12)

Loss PreventionLOSS (12 MONTHS)

% Non-technical losses/ LV Market

Non-technical losses GWh

Technical losses GWh

% Non-technical losses / LV Market - Regulatory

set/12 dez/12 mar/13 jun/13 set/13

43.1%

43.7%

32.0%

5,615

2,432

8,552

44.2%

Dec/12 Mar/13

45.4%

6,029

2,618

8,584

Sep/13

6,007

2,577

8,057

Sep/12

44.9%

5,953

2,629

8,647

Jun/13

5,905

2,647

8,582

- 1.7%

2009 2010 2011 2012 set/13

INSTALLED METERS (Thousand Units)

341

2010 2011 Sep/132009 2012

2

30

7

7989

80

227

122

410

78

197115

272297

Losses Combat ActionsAPZ Results

Before Mar-13 Jun-13 Sep-13Curicica 13,125 38% 12.1% 11.9% 11.2% 98.8%Realengo 10,182 38% 16.9% 15.8% 15.0% 98.6%Cosmos 38,132 48% 22.8% 20.8% 19.3% 105.3%Sepetiba 19,857 57% 33.5% 31.5% 30.6% 97.4%Caxias 1 e 2 13,935 59% 19.5% 22.9% 25.8% 95.1%Belford Roxo 1 e 2 20,436 63% 32.4% 29.1% 26.6% 95.5%Vigário Geral 16,198 35% 16.1% 15.8% 15.2% 99.5%Caxias 3 17,675 43% 25.2% 22.9% 20.7% 98.4%Nova Iguaçu 1 33,129 49% 31.9% 31.5% 29.9% 97.7%Nova Iguaçu 2 20,756 46% 25.0% 24.5% 23.5% 96.8%Nilópolis 10,388 42% 28.8% 28.5% 27.9% 94.9%Nilópolis Convencional 11,089 38% - 14.0% 13.7% 97.2%Ricardo de Albuquerque 25,701 35% 19.5% 18.1% 16.3% 97.9%Mesquita 9,038 51% 38.4% 34.0% 30.2% 95.8%Cabritos/Tabajaras/Chapéu Mangueira/Babilônia

6,387 57% 11.9% 11.6% 11.5% 97.1%

Coelho da Rocha 17,738 41% - 16.8% 14.3% 95.8%Batan 8,625 62% - 9.5% 9.6% 105.2%

Total 292,391 47.7% 24.3% 22.5% 21.2% 98.6%

LocationNumber of

Clients (sep/13)

Collection (sep/13)

Acumulated Losses

-26.5 p.p.

Losses Combat ActionsPacified 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:

-52.9 p.p.

Before Mar-13 Jun-13 Sep-13Santa Marta 2009 95.00% 8.22% 5.07% 8.30% 97.61%

Cidade de Deus 1 2010 52.10% 14.45% 14.45% 11.43% 95.69%Chapéu Mangueira 101.88%

Babilônia 97.05%Cabritos 97.18%

Tabajaras 95.74%

Formiga 2011 73.30% 9.37% 10.75% 10.12% 93.10%Batan 2012 61.80% 10.66% 8.87% 11.47% 105.24%Borel 2013 60.50% 31.06% 26.13% 9.71% 88.96%

Total - 64.10% 14.60% 12.30% 11.20% 97.10%

2010

2011

Timely Payment (sep/13)

14.60%

12.80%

62.70%

62.30%

8.55%

11.76%

14.75%

12.47%

Location Year of conclusion

Acumulated Losses

Net Revenue

Industrial 6.5%

NET REVENUE (R$MN)

Generation 7.6% Distribution

82,5%**

NET REVENUE BY SEGMENT (3Q13)*

Commercialization 9.9%

* Eliminations not considered** Construction revenue not considered

NET REVENUE FROM DISTRIBUTION (3Q13)

Commercial 31.3%

Others (Captive) 13.0%

Network Use (TUSD)(Free +

Concessionaires) 8.3% Residential

40.9%Construction RevenueRevenue w/out construction revenue

2.500,0

3.000,0

3.500,0

4.000,0

4.500,0

5.000,0

5.500,0

6.000,0

3T12 3T13 9M12 9M132T12 2T13 1S12 1S133Q133Q12

+0.6%

1,737.6

1,726.7170.3

1,615.2

1,556.4

122.4

+3.4%

4,945.6

5,147.1

455.2470.0

5,415.5

5,602.3

+3.8%

+4.1%

9M139M122T12 2T13 1S12 1S13

Operating Costs and Expenses

Manageable (distribution): R$

311.5(27.5%)

Generation and Commercialization: R$

206.2(18.2%)

Non manageable (distribution**): R$

614.6(54.3%)

* Eliminations not considered** Construction revenue not considered

DISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*3Q13

R$ MN 3Q12 3Q13 Var. 9M12 9M13 Var.

PMSO 178.5 182.5 2.3% 516.0 568.8 10.2%

Provisions 52.3 41.0 -21.6% 222.9 152.8 -31.4%

PCLD 39.3 37.1 -5.6% 173.2 114.6 -33.8%

Contingencies 13.0 3.9 70.0% 49.7 38.3 -22.9%

Depreciation 69.3 86.0 24.1% 212.9 250.5 17.7%Other operational/revenues expenses 1.5 (1.9) - (2.5) 14.8 -

Total 298.6 311.5 4.3% 954.3 987.0 3.4%

3T12 3T13 9M12 9M13

298.6 311.5

+4.3%

3Q133Q12 9M139M12

954.3 987.0

+3.4%

EBITDA

CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*3Q13

Generation 14.3% (EBITDA Margin: 79.0%)

Commercialization 1.6%

(EBITDA Margin: 6.8%)

Distribution 84.1%

(EBITDA Margin: 42.7%)

*Eliminations not considered3T12 3T13 9M12 9M13

722.0

276.6

+161.1%

3Q12 3Q13 9M12 9M13

1,355.1

965.6

+40.3%

Distrib

uição

;

84,1%

; 84,1

3%

Geraç

ão; 1

4,3%;

14,27

%

Comer

cializ

ação

;

1,6%; 1

,60%

EBITDA

EBITDA3Q12

EBITDA3Q13

Net Revenu

e

Non-Manageabl

e Costs

Manageable Costs (PMSO)

Provisions

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted EBITDA

3Q12

Adjusted EBITDA

3Q13

Ajusted EBITDA – 3Q12 / 3Q13(R$ MN)

Others CDE Fund

EBITDA Ajustado -

2T11

Ativos e Passivos

Regulatórios

EBITDA -2T11

Receita Líquida

Custos Não Gerenciáveis

Custos Gerenciáveis

(PMSO)

Provisões EBITDA -2T12

Ativos e Passivos

Regulatórios

EBITDA Ajustado -

2T12

119395

277

59100

(8) (22)

(329)

393

- 0.6%

+ 161.1%

12

722

303

EBITDA

EBITDA9M12

EBITDA9M13

Net Revenu

e

Non-Manageabl

e Costs

CDE Fund Provisions

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted EBITDA 9M12

Adjusted EBITDA 9M13

Ajusted EBITDA – 9M12 / 9M13(R$ MN)

Manageable Costs (PMSO)

Others

EBITDA Ajustado -

2T11

Ativos e Passivos

Regulatórios

EBITDA -2T11

Receita Líquida

Custos Não Gerenciáveis

Custos Gerenciáveis

(PMSO)

Provisões EBITDA -2T12

Ativos e Passivos

Regulatórios

EBITDA Ajustado -

2T12

192

1,158966

202(552)

(36) (109)

1,246

+ 7.6%

+ 40.3%

71

1,355765

(60)

EBI TDA Ajustado -

2T11

Ativos e Passivos

Regulatórios

EBI TDA -2T11

Receita Líquida

Custos Não Gerenciáveis

Custos Gerenciáveis

(PMSO)

Provisões EBI TDA -2T12

Ativos e Passivos

Regulatórios

EBI TDA Ajustado -

2T12

Net Income

3Q12 3Q13EBITDA

Financial Result

Taxes Others

ADJUSTED NET INCOME 3Q12 / 3Q13 (R$ MN)

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted Net Income

3Q12

Adjusted Net Income

3Q13

LL Ajustado 3T12

Ativos e passivos

Regulatórios

3T12 EBITDA Resultado Financeiro

Impostos Outros 3T13 Ativos e passivos

Regulatórios

LL Ajustado 3T13

Lucro Líquido e Lucro Líquido Ajustado 1T12/1T13 - R$ Milhões

+ 282.1%

16278

84

445

(9)

(182) (17)

321(217)

104

- 35.9%

EBI TDA Ajustado -

2T11

Ativos e Passivos

Regulatórios

EBI TDA -2T11

Receita Líquida

Custos Não Gerenciáveis

Custos Gerenciáveis

(PMSO)

Provisões EBI TDA -2T12

Ativos e Passivos

Regulatórios

EBI TDA Ajustado -

2T12

Net Income

9M12 9M13EBITDA

Financial Result

Taxes Others

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

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted Net Income

9M12

Adjusted Net Income

9M13

LL Ajustado - 1S12

Ativos e passivos

Regulatórios

9M12 EBITDA Resultado Financeiro

Impostos Outros 9M13 Ativos e passivos

Regulatórios

LL Ajustado - 1S13

391

127

264

390

8(166

) (36)

458

(72)

387

+ 73.6%

- 1.1%

Custo Nominal Custo Real

Indebtedness

Average Term: 4.3 years

AMORTIZATION SCHEDULE* (R$ MN)

Nominal Cost Real Cost

NET DEBT¹Without Pension Fund

*ConsideringHedge

* Principal only

COST OF DEBT

2012201120102007 2008 2009 set/10

Custo Real Custo Nominal

sep/13

Net Debt / EBITDA

2009 2010 2011 2012

Custo Nominal Custo Real

2009 2010 2011 2012

Custo Nominal Custo Real

2009 2010 2011 2012

Custo Nominal Custo Real

3T09 3T10 9M09 9M10Sep/13Jun/13

2.24%

8.21%

4.87%

11.08%

4.25%

11.03%8.83%

2.81%

1 Reclassified to reflect the deconsolidation results of jointly controlled companies.

TJLP15.1%

CDI 72.8%

IPCA 10.4%

Others 1.5%

U$/Euro 0.2%

4,151.6

2,62 2,68

4,056.1

2009 2010

Custo Real

Custo Real2013 2014 20152013 2014 2015 2016 2017 2018 2019 2020 2021 Após

2021

150

557773

1,009802

666437 441 441 545

2016 2017 2018 2019 2020 2021 After 2021

Investments

CAPEX (R$ MN)CAPEX BREAKDOWN

(R$ MN)9M13

Generation14.1

Administration 20.3

Others7.1

Develop. of Distribution System

253.5

Losses Combat133.4

Investments in Electric Assets (Distribution)

Commerc./Energy Eficiency53.8

2008 2009 2010 2011 2012 2008 2009 2010 2011 9M11 9M1220102009

563.8

928.6

700.6

2011 2012

796.8

694.1

102.7

446.9

116.9

518.8

181.8774.8

153.8

2008 2009 2010 2011 9M11 9M129M139M12

302.3

482.0 393.9

45.888.3

527.8 482.2

-18.3%

Tariff Review Results3rd Cicle

StructuralRepositioning

2013

+ 2.46%

+ 9.08%

Financial Additions

2013

Average perception for

consumers

+3.48% + 3.65%

+ = =

- 6.62%

Financial Additions

2012

-

+2.28%

Parcel A:Non

Manageable Costs

Parcel B:Manageable

Costs

Tariff Review nov/2013

Tariff Review Highlights

2008 2013

EBITDA

2008 2013

PMSO

2008 2013

Rec Bruta

2008 2013

Rec LíquidaREGULATORY

EBITDAR$ MN

PMSOR$ MN

GROSS RAB R$ MN

NET RAB R$ MN

PARCEL BR$ MN

DELINQUENCY

1,2181,048

824583

11,974

8,077

6,711

4,673

2008 2013

Cresc Mercado

2008 2013

Inadimplência2,1111,698

0,90%

0,95%

2008 2013

fator X1.22%

0%

2008 2013

fator X

11.36%

15.08%

X FACTOR GROSS WACC

Obrigações especiais + bensdepreciados

Base remuneração reg. Líquida

depreciação acumulada - bensdepreciados

Remuneration Base and OPEX

Special Obligations +100% Depreciated Assets

+ IAS Integral

Net RAB

R$ 6,711 Bi

Accumulated Depreciation-

100% Depreciated Assets

R$ 5.263 BN

Gross RABR$ 11.974 BN

TOTAL ASSET BASER$ 14,670 BN

OPERATIONAL COSTS*R$ 908 MN

300000000

400000000

500000000

600000000

700000000

800000000

900000000

1E+09

Inadimplência

Anuidades

Empresa de referênciaReference Company

R$ 728 MN

AnnuitiesR$ 96 MN

Delinquency R$ 83 MN

R$ 2.695 BN

* Corrected by productivity factor

Non-Technical Losses

31,80%

40,41% 40,41%

31,27% 30,95% 30,53% 30,11% 29,69%

39,92%

38,33%

34,49%

30,60%29,40%

28,20%27,01% 25,81%

39,13%

36,41%

33,00%

2013 2014 2015 2016 2017 2018Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)

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

Contacts

João Batista Zolini CarneiroCFO and IRO

Luiz Felipe Negreiros de SáSuperintendent of Finance and Investor Relations

+55 21 2211 [email protected]

Gustavo WerneckIR Manager

+ 55 21 2211 [email protected]

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