Corporate Presentation Corporate Presentation

February 2011 February 2011

Light Holdings
Holding

Distribution
Light Servios de Eletricidade S.A.

Generation

Trading/Services
Light Esco Prestao de Servios S.A. Lightcom Comercializadora de Energia S.A.
100%

Technology

Light Energia S.A.

100%

Itaocara Energia S.A.

51%

Axxiom S.A. Axxiom S.A.

51%

100%

100%

Lightger S.A.
(SHPP Paracambi)
51%

Lighthidro S.A.
(Non Operational)
100%

EBL
33%

Rankings
Integrated Net Revenues 2009 R$ Billion
11.7 10.6

Distribution Energy Consumption in Concession Area (2009) - GWh1

48,566 42,786 41,269 28,280 4.6 21,492 21,286

7.0 5.6 5.4

Generation Private-owned Companies Installed Hydro-generation Capacity (MW) 2009

5,175

2,651

2,237 1,737 1,688 855

Souce: Companies reports Note: 1 Captive market + free clients 2 It doesnt consider the consumption of CSN, Valesul and CSA 3

Shareholders Structure
Dec 2010 Controlling shareholder [52.1%] LUCE LEPSA 26.06% 13.03%
REDENTOR

Free Float [47.9%]

RME 13.03% 15.02%

Market 32.88% Final Structure Controlling shareholder [52.1%]

FIP REDENTOR

<50%

>50% Free Float [47.9%]

SPV PARATI

Market 15.02% 32.88%

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

26.06%

26.06%

Corporate Governance

Shareholders

Controller discussion Controller discussion group group

11 Board members: 2 independent and 1 employees nominated 2 years term Fiscal Council Manual of Corporate Governance

Controller group Controller group

Minority Minority

General Assembly General Assembly Fiscal Council Fiscal Council Interface Board of Directors Board of Directors Governance and Governance and Sustainability Sustainability Committee Committee Human Resources Human Resources Committee Committee

Auditors Auditors Committee Committee

Management Management Committee Committee

Finances Finances Committee Committee

Management Management

Distribution Business Distribution Business

5th largest energy distribution company in Brazil 5th largest energy distribution company in Brazil

4.0 million clients (attending over 10 million people) Energy sales (2009) 21,492 GWh 70% of the consumption of Rio de Janeiro state (Brazils 2nd GDP)

Energy Consumption
Distribution
ELECTRICITY CONSUMPTION (GWh)
+1.9% a.a. +3.1% +1.6% a.a. +6.0%

4,802

4,980

4,989

5,144

15,533

15,672

15,775

16,728

22.2 C

22.7 C 21.7 C

22.1 C

24.5 C

24.7 C 23.6 C

24.4 C

3Q07

3Q08

3Q09

3Q10

9M07

9M08

9M09

9M10

Free Customers 14.9% Others 15.6%

Industrial 8.0%

Commercial 27.0%

Residential 34.6%
7

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 core network.

Total Market

ELECTRICITY CONSUMPTION (GWh) (CAPTIVE + FREE MARKET)

+6.0%

15,775
+6.9%

16,728 764

+5.9% +7.2%

607 4,972 379 2,549 4,593 127 2,421

5,785

6,185

4,697 2,744 2,940 1,654 1,286 9M10 9M09 249

+3.2%

2,630 131 2,499

4,382

4,379

1,395 1,349 9M09 9M10 9M09

4,447

9M10

9M09

9M10

9M09

9M10

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE

Investments scheduled
Till the World Cup in 2014 and the Olympics in 2016
Total estimated investments1 of R$ 76 billion
Infrastructure R$ 31 billion
Revitalization of the Port zone Expansion of subway system Urbanization of slums Depollution of the Rodrigo de Freitas Lake Construction of the Metropolitan Arch Expansion of Tom Jobim airport Construction of 50,000 housing units by 2013 T5 Corridor Rio-So Paulo bullet train Angra 3 Via Light (Road)

Private R$ 41 billion
Investments in optic fibers by 2016 Improvement and acquisition of new trains by Supervia Renovation of Hotel and Marina da Glria Expansion of hotel capacity (5 new hotels on the waterfront, 8,000 beds in ships) Construction of COMPERJ Expansion and modernization of REDUC Construction of CSA Eisa naval industry Sudeste Port Gerdau Port Terminal Coquepar CSN Itagua Logistics Platform

Olympics R$ 4 billion
Construction of Barra da Tijuca Complex Construction of Deodoro Complex Renovation and Expansion of Maracan Stadium

1 Source:

Firjan, Rio de Janeiro Town Hall, Light and Construction Industry Union of Rio de Janeiro. Considering the part inside of the State of Rio de Janeiro

Collection Rate

COLLECTION RATE BY SEGMENT 9 MONTHS

105.4% 105.6%

97.8% 98.7%

94.0% 95.8%

101.3% 101.1%

COLLECTION RATE 12 MONTHS

97.2% 98.0%

Total

Retail

Large Customers 9M10

Public Sector

Sep/09

Sep/10

9M09

10

Losses
LOSSES (12 months)
42.3% 42.5% 42.7% 42.4% 42.1% 37.3% 7,269 7,504 7,549 7,551

7,005

NON TECHNICAL LOSSES PROFILE

Out of risk areas 61% Risk areas 39%

4,958

5,149

5,313

5,352

5,330

2,047 Sep/09

2,120 Dec/09

2,191 Mar/10

2,197 Jun/10

2,214 Sep/10

Non-technical losses GWh Techincal losses GWh % Non-technical losses / Low voltage market % Non-technical losses / Low voltage market Regulatory
11

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

9m

75 412

75 412

Analogic Meter

Display

12

New Technology Program

Meters Installed
(as of Dec, 2010)
122,000 84,000 38,000

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
TOTAL INDIVIDUAL CENTRALIZED

13

Results of New Technologies

INDIVIDUAL METERING (ISM)
TOTAL LOSSES AT AREAS WITH ISM

CENTRALIZED METERING (CSM)

BILLED CONSUMPTION GROWTH (2010/2009) CSM x Around Region
29.2% 22.7% 31.7%

22.0% 15.0% 11.0% 9.0%

16.0% 6.1% 9.5% 3.6% 12.3% 7.9% 2.4% Jun Around region 4.9% 3.4% 11.7%

Feb/08

Dec/08

Jul/09

Dec/09

Oct/10

Apr

May

Jul CSM

Aug

Sep

Regions of Barra da Tijuca and Jacarepagu

Region of Realengo

14

Pacification of risk areas

15

Action in Pacified Communities

Regions with high losses and potential return Expansion of the PPU*'s police allows different actions in the risk areas Actions of energy efficiency in communities *PPU : Pacification Police Units

LAMPS 99.7 thousand

REFRIGERATORS 5.6 thousand

Communities billed

Light started to bill new communities in December: Babilnia, Casa Branca, Batam and Cantagalo.
16

Action in Pacified Communities

COMMUNITIES BEFORE SANTA MARTA AFTER BEFORE CHAPU MANGUEIRA AFTER BEFORE CIDADE DE DEUS AFTER BEFORE BABILNIA AFTER BEFORE CASA BRANCA AFTER BEFORE BATAM AFTER BEFORE AFTER CANTAGALO

CLIENTS 80 1,671 408 540 2,800 3,700 389 850 470 740 0 500 1,054 2,003

LOSSES 90% 2% 56% 1% 52% 8% 73% TBD 77% TBD 62% TBD 66% TBD

DELINQUENCY RATE 70% 2% 74% 2% 68% 0% 54% TBD 52% TBD 51% TBD 79% TBD

17

Tariff Review - Aneels Proposal for 3rd cycle

Regulatory WACC

2ndTariff Revision CapitalStructure Equity Debt CostofEquity RiskFreeRate EquityRiskPremium Beta CountryRisk FXrisk USinflation NominalCostofEquity RealCostofEquity CostofDebt CreditRisk NominalCostofDebt RealCostofDebt WeightedAverageCost NominalWACCaftertax RealWACCaftertax PretaxRegulatoryReturn 42.84% 57.16% 5.32% 6.09% 0.772 4.91% 1.78% 2.60% 16.71% 13.75% 2.96% 14.97% 12.06% 12.81% 9.95% 15.07%

3rdTariff (Aneel's Proposal) 40.00% 60.00% 4.96% 5.78% 0.650 4.42% eliminated 2.48% 13.14% 10.40% 2.12% 11.50% 8.80% 9.81% 7.15% 10.84%

Regulatory returns for distribution and transmission

11.26% 9.28% 9.95% 7.24%

7.15%

Distribution 2003 (1st Cycle)

Transmission 2005 (1st Cycle)

Distribution 2007 (2nd Cycle)

Transmission 2009 (2nd Cycle)

Distribution 2011 (3rd Cycle)

18

Tariff Review - Aneels Proposal for 3rd cycle

Main periodic tariff review dates

LastRevision NextRevision 2011 Coelce Eletropaulo EDBBandeirante CPFLPiratininga 2012 CPFLJaguariuna CPFLSantaCruz Copel Celesc 2013 Cemig CPFLPaulista CPFLRGE EDBEscelsa EquatorialCemar Light 22Apr07 04jul07 23Oct07 23Oct07 3Feb08 3Feb08 24jun08 7Aug08 8Apr08 8Apr08 19Apr08 7Aug10 26Aug09 07nov08 22Apr11 4Jul11 23Oct11 23Oct11 3Feb12 3Feb12 24Jun12 7Aug12 8Apr13 8Apr13 19Apr13 7Aug13 28Aug13 7Nov13

Light
EBITDA by segment - 2013 Generation and Trading 30%

Distribution 70%

19

Generation Business Generation Business

Installed capacity 855 MW Installed capacity 855 MW

855 MW of installed capacity 855 MW of installed capacity 5 power plants and 2 pump stations 5 power plants and 2 pump stations 537 MW average of assured capacity 537 MW average of assured capacity

20

Installed Capacity

Installed Capacity 855 MW

100% 100%
Paraiba do Sul River

HPP Santa Branca 56 MW

Lajes Complex SP HPP Santa Branca RJ

HPP Ilha dos Pombos

HPP Ilha dos Pombos 187 MW

100%

100%

100%

HPP Fontes Nova 132 MW

HPP Underground Nilo Peanha - 380 MW

HPP Pereira Passos 100 MW

21

Re-pricing of existing energy

GENERATION Assured energy: 537MW average

27

27 146

27

276 510 234 130

2008-2012 2013 Contracted Energy Uncontracted Energy New Contracts Hedge

234
2014

22

Strategy of growing in generation

Installed Capacity Expansion

Growth Opportunities
Light is constantly looking for new opportunities in renewable energy Small Hydro Power Plants Hydro Power Plants Biomass Wind energy

Greenfields
+50%

306

1,282
Acquisition of Existing Assets Assets with potential for improvement and further expansion Assets belonging to investors that do not have a long-term commitment to Brazil

855

13

99

Joint Venture with CEMIG

Commitment to invest jointly in new generation projects Potential new projects already analyzed by CEMIG

Generation capacity

SHPP Paracambi

SHPP Lajes

HPP Itaocara

New Projets

Future Generation capacity

Corresponds to 51% Lights stake in each project.

23

SHPP Paracambi

PROJECT HISTORICAL Oct/2009 Construction Beginning Nov/2010 Construction Status 45% done Nov/2011 Operational Start

24

Results Results

25

Net Revenues

NET REVENUE GROWTH (R$ MN)

+4.3% a.a.

NET REVENUE BY SEGMENT (9M10)*

Generation 5.1% Commercialization 3.0% Distribution 91.9%

4,992

5,387

5,432

+12.7%

3,930

4,429

*Eliminations not considered

DISTRIBUTION NET REVENUE (9M10)

2007 2008 2009 9M09 9M10 Others (Captive) 12.6% Industrial 7.6% Network Usage (TUSD) 6.3%

( Free Customers + Concessionaires)

Commercial 25.5%

Residential 44.1%

26

Operating Costs and Expenses

COSTS (R$MM)* 9M10

1,561 Manageable (distribution): R$ 791.0 Non Manageable (distribution): R$ 2,760.2
(21.1%)

MANAGEABLE DISTRIBUTION COSTS (R$ MN)

-30.1%

1,143 994

1,090

+0.7%

(73.6%)

786

791

(5.3%)

Generation and Commercialization : R$ 199.7

2006
R$ MN PMSO Provisions PDD Contingencies Depreciation Total

2007
3Q09 119.9 67.0 57.9 9.1 70.1 257.0

2008
3Q10 146.4 21.8 66.7 (44.9) 73.5 241.7 Var. 22.1% -67.5% 15.2% 4.9% -5.9%

2009
9M09 358.3 217.6 184.3 33.3 210.1 785.9

9M09
9M10 423.7 151.1 205.5 (54.3) 216.2 791.0

9M10
Var. 18.3% -30.5% 11.5% 2.9% 0.6%
27

*Eliminations not considered

EBITDA

EBITDA (R$ Million) and EBITDA Margin

27.9% 22.8% 21.9% 1,504 1,188 969 848 21.6% 21.9%

EBITDA BY ACTIVITY* 9M10

1,138

Distribution 81.2% (EBITDA Margin: 19.2%)

Generation 16.9% (EBITDA Margin: 71.5%)

Commercialization 1.9% (EBITDA Margin: 13.6%)

*Eliminations not considered

20071

2008
EBITDA

2009

9M09

9M10

EBITDA Margin

Pro forma: does not consider profit sharing costs

28

Net Income

NET INCOME (R$ MN)

1,074 974

605
-2.0%

357
479 418 223

350

2007

2008

2009

9M09

9M10

non-recurring effects

29

Dividends
16.2% 12.3% 8.3% 11.6% 795

PAYOUT AND DIVIDEND POLICY

518

559

595

100%

100% 76.3%

50%

2007

2008

2009 Dividend Yield*

2010

2007 Payout

2008

2009

Dividends (R$ MN)

Dividend Policy

* Based on the closing price of the previous day to the announcement

30

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

2,540

Rating (brA - )

Investment Grade (brA)

Rating (brA + )

Rating (Aa2.br)

3.4

1,462

1,580

1,637

1,664

1.3

1.1

1.4

1.3

2006

20072 Net Debt

2008

2009 Net Debt/ EBITDA

Set/10

Net debt = total debt (excludes pension fund liabilities) cash EBITDA Pro Forma, not considering costs of profit sharing costs

31

Indebtedness
NET DEBT
1,805 1,664

Amortization Schedule* Sep/10 (R$ MN)

Duration: 3.2 years

596 1.4 1.3 45 Sep/10 2010 2011 2012 2013 2014 495 481 414 122 2015 267 After 2015

Jun/10

* Only principal

Debt Cost Evolution

12.17% 13.97% 9.84% 7.39% 7.62% 11.32% TJLP 23.2% US$/Euro 1.8%*

CDI/Selic 75.0%

5.30%

6.32%

2007

2008 Real Cost

2009

Sep/10 Nominal Cost C

*Considering Hedge 32

Capital Expenditures

INVESTMENTS (R$MN)
706.0 546.7 354.7 563.8
+23.9%

INVESTMENTS (R$MN) 9M10

Generation Maintenance R$17.4 Newprojects ofgeneration R$60.0 Quality Improvements R$66.0 LossesCombat R$75.6 Others R$23.7

437.0 352.8

Distribution Development System R$194.1

2007

2008

2009

2010E

9M09

9M10

33

Contacts

Joo Batista Zolini Carneiro

CFO and IRO

Renato Rocha
Head of Planning and IR + 55 21 2211 2766 renato.rocha@light.com.br

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

www.light.com.br/ri

34

Annex

35

Tariff Breakdown

DISTRIBUTION TARIFF BREAKDOWN Sector Charges 9.5% Distribution 23.1%

,

Transmission 4.8%

Energy Purchase 30.9%

Taxes 31.8%

Taxes and sector charges represent 46.1% of the tariff. Only 23.1% covers distribution expenses.

36

Distribution Companies

64 companies: 24 private owned (37%) 21 privatized (33%) 19 state owned (30%)

AMPLA

State-owned Companies Private-owned Companies

Source:
37

Final Tariff Review - Losses

Regulatory Losses
19.15% 15.95% 19.09% 5.61% 5.61% 5.61% 5.61% 5.61%

Trend

nov/08 out/09

nov/09 out/10

nov/10 out/11

nov/11 out/12

nov/12 out/13

Technical Losses / Grid Load (%)

2003 2008 2008 PRELIMINARY DEFINITIVE1
1

38.98%

37.19%

35.40%

33.61%

31.82%

Total Losses / Grid Load (%)

Energy Balance (GWh) = Grid Load - Energy transported to utilities - Energy transported to free customers = Own Load - Captive market consumption Low Voltage Market Medium Voltage Market - Losses + Non Billed Energy

9M10 26.048 2.345 3.717 19.986 14.564 9.446 5.118 5.422

9M09 24.237 1.921 3.033 19.283 14.004 8.886 5.118 5.279

Var.% 7,5% 22,1% 22,5% 3,6% 4,0% 6,3% 0,0% 2,7%

nov/08 out/09

nov/09 out/10

nov/10 out/11

nov/11 out/12

nov/12 out/13

Non Technical Losses / Low Voltage Market (%)

1- Preliminary announced on November 3, 2008 / 2008 definitive was approved in October 13, 2009

38

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.

39