Results Conference Call

2Q11

Highlights
Growth of 3.1% in the total energy consumption compare to 2Q10. Performance was mainly fueled by the expansion of the residential and commercial segments. Fifty consecutive losses reduction. In june/11, the non-technical losses ratio reached 41.3% over the lowvoltage market. Increase of 35.4% in 1H11s CAPEX. Highlight to network quality improvements and generation new projects construction. The 2Q11 collection rate increased, reaching 102.0% compared to 101.5% in 2Q10. Increase of 4.1% in the net revenue (without construction revenue) that totaled R$ 1,458.7

OPERATING PERFORMANCE

RESULTS

EBITDA of R$ 240.8 million, decrease of 36.7% compared to 2Q10, reflection of higher expenses with the purchased energy and provisions costs.
Net Income of R$ 45,3 million in 2Q11.

INVESTMENTS

Renovas investment allow to achieve the growth strategy of 50% in the Lights installed capacity. Acquisition of 20% of CR Zongshen E-Power fabricante de veculos eltricoss capital, which will produce Kasinski brand.

Energy Consumption
Distribution
ELECTRICITY CONSUMPTION TOTAL MARKET (GWh)
+2.8% a.a +3.1% FREE 13.9%

5,211

5,228

5,498

5,669

OTHERS 15.1%

INDUSTRIAL: 7.5%

22.9 C

23.4 C

22.7 C

22.6 C

COMMERCIAL 27.4%

RESIDENTIAL 36.0%

2T08 2Q08

2T09 2Q09

2T10 2Q10

2T11 2Q11

Industrial

Residencial

Comercial

outros

Livre

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) TOTAL MARKET - QUARTER
5,498
+2.6% +5.0% 743 +3.1%

5,669
789

1,992

2,043
+1.2%

1,639 133

1,721

167

+2.8%

4,755 48

4,880

988 565
423
2T10 2Q10 2T11 2Q11 2T10 2Q10

1,000 574
426
2T11 2Q11

880 1,505 1,554 45 835

905

857

2Q10 2T10

2T11 2Q11

2Q10 2T10

2T11 2Q11

2T10 2Q10

2T11 2Q11

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE

Total Market

ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET - SEMESTER

+3.2%

11,585 1,400
+2.8%

11,960 1,547

4,408

4,531

+4.8%

10,185

10,413

+1.5%

3,454 247 3,207

3,621 337 3,284

+3.2%

1,937 1,064
872
1S10 1H10 1S11 1H11 1S10 1H10

1,966

1,786 89

1,843 95
1,748

1,114
852
1S11 1H11 1S10 1H10 1S11 1H11 1S10 1H10

1S11 1H11

1S10 1H10

1S11 1H11

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE

Collection
COLLECTION RATE BY SEGMENT QUARTER
102.8% 103.8% 112.2% 98.9% 100.7% 101.3% 101.4% 108.3%

COLLECTION RATE 12 MONTHS

98.1% 97.5%

Total Total

Retail Varejo 2Q10 2T10

Large Grandes Clientes Customers

2T112Q11

Public Sector Poder Pblico

set/09' Jun/10 jan-10

set/10' Jun/11 jan-11

Loss Prevention
LOSS (12 MONTHS)
42.4% 42.1%

RECOVERY GWh
41.3% 36.0%
+8.1%

41.8%

41.6%

76.1

82.3

7,549

7,554

7,493

7,523

7,607

9M09 2Q10

5,352

5,330

5,378

5,312

5,318

1S10

9M10 2Q11 1S11

2,197 Jun/10

2,214 Sep/10

2,215 Dec/10

2,231 Mar/11

2,289 Jun/11

INCORPORATION GWh
+32.6%

13.0 6.0

jun/10

set/10

Non-technical losses GWh

dez/10

mar/11

jun/11

Technical losses GWh % Non-technical losses / Low voltage market % Non-technical losses / Low voltage market - Regulatory

2Q10 9M09
1S10

2Q11 9M10
1S11

Communities
Communities Santa Marta Chapu Mangueira Cidade de Deus Babilnia Casa Branca Batam Cantagalo Tabajaras Cabritos PAC Alemo Before After Before After Before After Before After Before After Before After Before After Before Before Before After Clients 80 1,677 408 545 2,800 3,712 389 677 470 800 0 400 1,054 1,741 712 1,450 0 1,304 Losses 90% 2% 56% 1% 61% 8% 73%
7%

Delinquency rate 70% 2% 74% 2% 68% 0% 54%

12%

58%
3%

52%
15%

62%
TBD

51%
7%

68%
TBD

79%
TBD

58% 58% 67% 5%

70% 70% 100% 10%

Started in 04/25/11

Other 9 communities more during 2011:

Pavo-Pavozinho, Providncia, Ladeira dos Tabajaras, Morro dos Cabritos, Borel, Novo Rio, Salgueiro, st st Complexo do Alemo (1 Part), Morro dos Macacos (1 nd nd Part), Cidade de Deus (2 Part), Batam (2 Part)

50 thousand clients

Net Revenue
NET REVENUE BY SEGMENT (2Q11)* NET REVENUE (R$ MN)
+7.8%

Generation 4.7%
9M10

Commercialization 3.4% Distribution 91.9%

3,221.6
+8.3%

3,472.6

1,512.7

1,637.9

*Eliminations not considered

NET REVENUE FROM DISTRIBUTION 2Q11

Others (Captive) 12.9% 2Q10 2T10 2Q11 2T11 1H10 1S10 1H11 1S11 Industrial 7.7%
2T11

Network Use (TUSD) 8.8%

(Free + Concessionaires)

Commercial 28.8%

Residential 41.7%

Operating Costs and Expenses

DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN) 1Q11
+18.5%

661.5 558.2

Manageable (distribution): R$ 304.7 Non Manageable (distribution): R$ 885.3

(67.2%) (27.1%)

+37.3%

9M10

356.8 259.9

2Q10 2T10 Generation and Commercialization: R$ 75.2

(5.7%) R$ MM PMSO Provisions
PDD Contingencies

2Q11 2T11
2Q11 179.4 99.3 79.5 Var. 18.5% 175.7% 1.8%

1H10 1S10
1H10 286.2 129.3 138.8

1H11 1S11
1H11 348.0 159.6 143.9 Var. 21.6% 23.4% 3.7%

2Q10 151.4 36.0 78.1

*Eliminations not considered

39.0 72.4
259.9

19.8 78.0
356.8

-49.3% 7.7%
37.3%

9.5 142.7
558.2

15.7 153.9
661.5

66.3% 7.9%
18.5%

Depreciation
Total

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EBITDA
CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT* 1S11

-21.2%

857.6
-36.7%

675.7

Distribution 81.0%
(EBITDA Margin: 13.4%)

9M10

Generation 17.7%

(EBITDA Margin: 72.8%)

380.4

240.8

Commercialization 1.6%
(EBITDA Margin: 11.1%)

2Q10 2T10

2Q11 2T11

1H10 1S10

1H11 1S11

*Eliminations not considered

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EBITDA
EBITDA CONSOLIDATED 2Q11/2Q10 R$ Million

EBITDA 2Q10

Net Revenue

Purchased Energy

Manageable Costs

Provisions

EBITDA 2Q11

12

Net Income

362 362

NET INCOME Lucro Lquido - Semestre Lucro Lquido - Semestre R$ MILLION R$ Milhes R$ Milhes

107 107 (20) (20) (55) (55)

212 212

(182) (182)

1S10 1H10 1S10

EBITDA EBITDA EBITDA

Resultado Resultado Financial Result Financeiro Financeiro

Impostos Taxes

Outros Outros Others

1S11 1S11 1H11

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Indebtedness
NET DEBT EVOLUTION
2,549.3 1,805.2

AMORTIZATION* (R$ MN) Maturity: 3.6 years

592 414 478 484 321 150
2012 2012

559

686

594

1.4

2.0

471 111

423

3T10

Set/10' Jun/10 9M09

Dez/10' Jun/11 9M10

2011 2011 * Only Principal

2013

2014 2014

2015 2015

After 2015 Aps2015

COST OF DEBT
13.97% 9.84% 7.62% 11.08% 12.57% CDI/Selic 70.3% TJLP 21.4% US$/Euro 1.3%*

5.30%

4.88%

5.49%

2007
2008
2008 2007

2007 2008
2009 2008 2009

2008 2009
2010 2009 2010

2009 set/10
Jun/11 set/10 2T11

set/10

Real Cost Custo RealCusto Real

Nominal Nominal * Considering Hedge Custo Cost Custo Nominal

CustoCusto Real Nominal

Custo Custo Real Nominal

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Investments
CAPEX BREAKDOWN (R$MM) 1S11

CAPEX (R$MN)
+24.3%

700.6 546.7 354.7

563.8
+35.4%

337.1

249.0

New Generation Projects ; 27.2 Quality Improvements ; 55.8

Generation Maintenance ; 5.2

Others; 12.8

2007

2007

2008

2008

2009

2009

2010

2010

1S10

1H10

1S11

1H11

Develop. of Distribution System; 164.0

Losses Combat; 72.2

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Installed Capacity Expansion

Through this agreement, Light reaches the growth goal established in its Strategic Plan for eletric power generation business
Installed Capacity (MW)

+ 54.3%
99

104 110

1.319

866
11 855 Capacidade Current Atual capacity

13

76

42

2011 2011
SHP Paracambi

2012 2012
SHP Lajes

2012 2012
LER 2009

2013 2013
LER 2010

2014 2014
UHE Itaocara

2014 2014
LER 2011 Potential for contracting

Aps After 2014

2014

Capacidade Future Futura Capacity

PPA

Lights Projects

Renovas Projects

Considering 51% interest held by Light Considering 26.2% interest held by Light

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Investimento na E-Power
SHAREHOLDER STRUCTURE
Zongshen Industrie Group
50%

LOCALIZATION

CR Motors do Brasil S.A.

50%

Sapucaia

LIGHT

80%

20%

CR Zongshen EPower
One of the largest private groups in China, with gross revenue of USD 14 billion.

Approximately 150 km from Rio and into the Light's concession area, close to three important capital (RJ, SP and BH).

Estimated total Investment of R$ 122 million (D/E = 60%/40%) With that acquisition, Light will participate in a business that will : promote the social-economic development in its concession area Incentive the use of electric vehicle Influence the innovation sector electricity distribution

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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.

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