Financial Statements 2011

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19fmarf2012 1
Message from the CEO

In recent years, the state and especially the city of Rio de Janeiro have been undergoing a
continuous resumption of economic activity, self-esteem and citizenship and Light is proud to have
played an important role in this process, which requires that social responsibility practices be
compatible with business results. Lights investments to expand the electricity grids in the pacified
communities are a perfect example of this, aligning improved service quality with increased revenue
from reduced losses and lower default, thereby benefiting both the community and our shareholders.
In 2011, we regularized energy supply to more than 20,000 households in these communities. This
was no easy task, as it required the construction of aerial networks in areas of difficult access, and
the development of solutions that are adapted to the contours of the land, allow consumption to be
normalized and contribute to the urban integration of these communities. In 2011, we constructed 79
km of low and medium-voltage aerial networks and installed 550 km of service drops. We also
implemented several energy-saving initiatives, including the replacement of bulbs and refrigerators,
with no additional charge to residents.
The consistency and solidity of Rios social and economic development is also apparent in the
performance of the electricity market. In 2011, power consumption in the city, which has always been
highly sensitive to average temperatures, moved up by 2.5% over the previous year, even though
2011 was substantially colder than 2010, underlining the excellent prospects for the local economy.
This prosperity is reflected in the stability of our financial results, strengthening the sustainability of
our business.
But the year was primarily characterized by the way we overcame several major challenges. The first
half was marked by recurring incidents in our underground facilities, which required additional efforts
to ensure service quality and safety. Our entire workforce demonstrated admirable team spirit, doing
their utmost to resolve the problems and preserve the Companys reputation. During these crises,
many members of our team volunteered to assume more responsibilities than usual and demanded
the same attitude from those around them. Our shareholders, represented by the Board of Directors,
were equally quick to respond, increasing investments and raising the necessary funds for the
recovery of the system.
While seeking solutions for these incidents, it became clear that the mapping of the infrastructure
belonging to Light and the other companies sharing Rios subsoil was in need of upgrading and
computerization. We therefore established an agreement with the city government and other public
utilities concessionaires with underground installations to draw up a digital map of the subsoil. The
integrated data will create a management tool that will allow for more efficient interventions and
prevent the works of one concessionaire from harming the facilities of another.
But it was not only the underground system that required our attention. We also georeferenced the
low-voltage networks, renewed the aerial networks and continued to develop our intelligent metering
systems, or SmartGrids. In addition, together with the sectors main organizations (MME, ONS, EPE,
Furnas and COI), we helped plan the electricity network for the citys upcoming events (Rio+20 in
2012, the 2013 Confederations Cup, the 2014 World Cup, and the 2016 Olympics and Paralympics).
We also created the Service Control Center, which reduces the need for on-site inspections through a
single, centralized monitoring and control system, and allows for better oversight of safety equipment
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19fmarf2012 2
and vehicle use. We introduced PDAs (Personal Digital Assistants) which were integrated into the
Companys corporate system, enabling the online updating of service note information and monitoring
of the field teams, so that they can be directed to where they are most urgently needed as quickly as
possible. We hired 276 customer relationship agents to deliver electricity bills, thus establishing
another communication channel in addition to SMS and the conventional call center. Also on the
customer relations front, Light was ranked first in the energy sector category by the 2011 Exame
magazine/IBRC Customer Service Survey.
We continued helping to improve the regulatory framework, particularly the public hearing process,
which culminated with the approval by the Brazilian Electricity Regulatory Agency (Aneel) of the
methodologies and general criteria for the electricity distributors 3
rd
Periodic Tariff Revision Cycle,
scheduled to take place between 2011 and 2014.
Our commercialization company, Light Esco, sold 1,620 GWh on the free market in 2011, 35% up on
the previous year and its highest ever annual figure, an achievement that becomes even more
significant in view of the adverse economic scenario and the consequent reduction in energy demand
by major free clients. We also attracted some important new clients such as shopping malls,
established a partnership to install a cogeneration plant in the Coca-Cola factory in Jacarepagu, and
together with EDF, negotiated a contract with the Rio de Janeiro State government for the
construction of a solar power plant to be installed on the roof of the Maracan soccer stadium.
As always, we maintained our generation complex in excellent operating conditions in 2011. We also
acquired 26% of Renova (a company specializing in renewable energy) to increase the Light Groups
generating capacity, gain experience in the use of wind power, and make further inroads into the non-
regulated segment of the energy sector. With the same aim in mind, we acquired a minority interest in
the Belo Monte hydropower plant, in order to position ourselves among those companies building
large-scale hydro generating facilities with an excellent cost-benefit ratio in Brazils North region.
Construction of the Paracambi SHP (small hydro plant) is moving ahead on schedule, with
operational start-up due in the first half of 2012. Together with Cemig, we also put immense effort into
enabling construction of the Itaocara hydro facility.
We maintained our commitment to improving our workforce, including our own employees and those
of our partners. We implemented a project to certify our third-party electricians and technicians, as a
result of which we qualified 124 new electricians, in five groups, two of which were composed
exclusively of pacified community residents. We also developed the Employee Development Program
under the slogan everyone in step, mobilizing 3,500 workers, divided into 35 groups, as well as 450
employee family members to take the EDP concepts beyond the limits of the professional workplace.
Despite our training programs, however, there was little to celebrate in terms of occupational safety,
as we suffered several accidents in 2011, some of which, unfortunately, were fatal. Since this is
clearly unacceptable, we set up a committee comprising managers from various areas tasked with
benchmarking our peer companies in order to identify the best training and qualification practices for
our own and our partners employees. In 2012, we will begin to implement these practices, which will
require a continuous effort to change the Companys culture.
Lights shares appreciated by 24.8% in 2011, substantially outperforming the Ibovespa Index, which
fell by 18.1%, and the IEE (Electric Power Index), which moved up by 19.7%. At year-end, 32.85% of
the Companys shares were held by minority shareholders (in addition to BNDESPar, with 15.02%).
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Investments in generation, distribution and corporate activities amounted to R$931.0 million, an all-
time record. Dividends and interest on equity declared in 2011 totaled R$556 million. The table below
shows the years highlights in comparison with 2010.
In 2011, the total energy consumption increased 2.5% to 22,932 GWh, the Net Revenues (without
Construction Revenue) was R$ 6,150.1 million, 3.3% higher, EBITDA reached R$ 1,243.6 million and
net income was R $ 310.6 million. The non-technical losses, or theft of energy, representing 40.5% of
billed energy in the low-voltage market, 1.3 pp lower than in 2010 and the collection rate was 97.4%,
0.5 pp lower than the year past. Due to higher investments and acquisitions, net debt of the Company
ended the year at R$ 3,383.2 million. In 2011, the Companys shares appreciated by 24.8%,
outperforming both the Ibovespa(-18.1%) and the IEE (+19.7%). The Companys market cap (no. of
shares x share price) closed the quarter at R$5,873 million.
We have overcome many challenges, but there is still a great deal to be done. We will continue our
pursuit of sustainability, service excellence, and the creation of shareholder value. We are reasserting
our commitment to the social and economic development of Rio de Janeiro and are fully aware that
we can only fulfill this responsibility with the help of our highly-qualified and motivated team. This
report describing the initiatives we developed in 2011 is a reaffirmation of this commitment.

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Corporate Profile
Light is present in 31 municipalities of the state of Rio de Janeiro, covering an area with a population
of more than 10 million. At the end of 2011, it had 4,128,295 clients. Headquartered in the city of Rio
de Janeiro, the Light Group comprises the following companies: Light S.A. (holding); Light Servios
de Eletricidade S.A. (Light SESA), the distribution company; Light Energia S.A. (Light Energia), the
generation company; Lightger S.A. (Lightger), responsible for the Paracambi SHP project; Itaocara
Energia Ltda. (Itaocara), responsible for the Itaocara Hydropower Plant project; Amaznia Energia
Participaes S.A. (Amaznia), an SPE in partnership with Cemig to participate in the Belo Monte
Hydropower Plant project; Light Esco Prestao de Servios S.A. (Light Esco) and Lightcom
Comercializadora de Energia S.A. (Lightcom), both of which specialize in energy trading; Light
Solues em Eletricidade Ltda. (Light Solues) and Axxiom Solues Tecnolgicas S.A. (Axxiom),
both service companies; Instituto Light, an institution; and CR Zongshen E-Power Fabricadora de
Veculos S.A. (E-Power), which manufactures two-wheeled electric vehicles.
100% 100% 100% 100% 100% 100% 51% 100% 51% 20%
25.85%
Light
Energia
S.A.
Light
Servios de
Eletricidade
S.A.
Light Esco
Prestao de
Servios S.A.
Lightcom
Comercializadora
de Energia S.A.
Itaocara
Energia
Ltda.
Light
Solues em
Eletricidade
Ltda.
Instituto
Light
Lightger
S.A.
Axxiom
Solues
Tecnolgicas
S.A.
CR Zongshen
E-Power
Fabricadora de
Veculos Ltda.
Renova
Energia S.A.
Light S.A.
(Holding)
25.5%
Amaznia
Energia
S.A.
33%
EBL
Cia de
Eficincia
Energtica
S.A
Generation Commercialization and Service System
Electric
Vehicles
Institutional
Norte
Energia S.A.
9.77%
Guanhes
Energia
51%

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Operating Scenario

Business Environment
Rio de Janeiro states current favorable social, economic and political scenario is reflected directly in
the distribution companys consumer market. As a result, even though average temperatures in 2011
were below the historical average, consumption moved up by 2.5%.
Loss reduction is one of the Companys biggest challenges, and we continued to made progress on
this front in 2011. Non-technical losses, measured as a percentage of billed energy in the low-voltage
market, fell by 1.3 p.p. over 2010. We speeded up the installation of electronic meters due to the
ratification of another two suppliers, and a total of 208,000 such devices had been installed by the end
of the year. The process of helping communities take back their rights by developing initiatives in
association with the municipal, state and federal governments through the Pacifying Police Units
(UPPs), also played an essential role in allowing Light to move into these communities and help
restore the citizenship of their residents.
2011 was also marked by acquisition-driven growth. In line with its Strategic Plan, focused on
expansion in the generation segment, Light acquired a 25.9% interest in Renova Energia, the largest
seller of wind power in the 2009 and 2010 auctions, with a contracted capacity of 1,096 MW in various
stages of development. It also acquired a 2.5% indirect interest in the Belo Monte hydropower plant.
As a result of these two important acquisitions, Light will expand its installed capacity by 75.4%, to
1,519 MW.
In 2012, Light will continue to develop its generation projects, including inauguration of the 25 MW
Paracambi SHP, in partnership with Cemig. Other ongoing projects include the Lajes SHP and the
Itaocara hydro plant, with a joint capacity of 162 MW, scheduled for start-up in 2013 and 2014,
respectively.
The Rio de Janeiro economy continues to thrive, creating excellent prospects for consumption growth
in the distribution companys market, especially in light of the programmed investments for the 2014
World Cup and 2016 Olympic Games. The communities will continue to play a key role in the loss-
combating program Light will move into a further nine communities in 2012, incorporating another
50,000 customers.

Operating Performance
Energy Distribution
Light SESA is the fourth-largest distribution company in Brazil in terms of number of clients and the
fifth largest in terms of amount of energy distributed, according to the 2010 Electricity Statistical
Yearbook published by the Energy Research Company (EPE), affiliated to the Ministry of Mines and
Energy.

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Tariff Adjustment
In November, ANEEL approved an average adjustment of 6.57% in Lights tariffs for the 12-month
period beginning November 7, 2011. The adjustment index consists of two components: a structural
component of 7.21%, which is permanently incorporated into the new tariff; and a financial component
(-0.64%), which applies only to the next 12 months.
Lights 2011 Tariff Adjustment
Structural TRI 7.21%
Financial Additions -0.64%
Total 6.57%

The annual tariff adjustment process consists of the pass-through to end consumers of non-
manageable concession costs (energy purchased for supply, sector charges and transmission
charges), which are calculated in detail annually, and the restatement of manageable costs by the
variation in the IGPM inflation index, less Factor X, which transfers the concessionaires annual
efficiency gains to consumers. Manageable concession costs are only calculated in detail in tariff
revision years.
The 7.33% variation in Parcel A (generation, transmission and sector charges) was mainly due to the
21.36% period increase in sector charges, which included the variation in the RGR (Global Reversal
Reserve), due to its extension until 2035 through Law 12431/2011. Another item with a significant
period variation was the ESS (System Service Charges), which moved up by 19.66% due to the costs
related to the dispatch of thermal plants out of their merit order for energy security reasons, in
accordance with the Electricity Sector Monitoring Committee (CMSE).
The variation in Parcel B reflects the 6.95% increase in the IGP-M index between November 2010
and October 2011, less Factor X of -0.01%, resulting in the final percentage of 6.96%.
Given the financial component of -0.64%, applied only to the next 12 months, and excluding the
financial component of -1.33% present in Lights tariffs effective until this date, Light SESA consumers
received an average increase of 7.82% in their electricity bills as of November 7, 2011.

Market Growth
Billed captive and free clients in the concession area consumed a total of 22,932 GWh in 2011, with
4,128,295 captive clients (including own consumption) and 127 free clients, excluding the industrial
clients CSN, Valesul and CSA. If the latter were included, consumption would increase to 24,658
GWh, versus 24,588 GWh in 2010. In addition to the free clients, there are nine generators connected
to the Companys distribution network who pay for the use of our system.
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Total energy consumption in Light SESAs concession area (captive customers + transport of free
customers ) came to 22,932 GWh in 2011, a 2.5% increase over 2010. The commercial and
residential segments, with respective growth of 4.3% and 2.1%, were the best performers, fueling the
market as a whole.
If consumption of the free clients CSN, CSA and Valesul is taken into account, total consumption
came to 24,658 GWh in 2011, versus 24,588 GWh in 2010.
The residential segment, which accounts for 36.7% of total consumption, grew by 2.1% in 2011 even
though the average temperature was 0.5C lower than the year before. Average monthly consumption
per consumer moved up by 0.4%, from 184.4 kWh, in 2010, to 185.2 kWh.
Commercial clients consumed 6,967 GWh, 4.3% more than in 2010, accounting for 30.4% of the total,
led by the retail segment which accounted for 23.3% of commercial consumption and recorded
average annual growth of 3.5%. The main retail segments activities were: fabrics/costumes;
pharmaceuticals/medicines and construction materials.
Industrial consumption amounted to 3,944 GWh, in line with 2010. The other consumption segments,
which accounted for 15.7% of the total market, posted growth of 86.4 GWh, or 2.5%, over 2010.
2010 2011
8,243
8,418
1,717 1,731
6,157 6,310
3,342 3,417
2,228 2,213
523
657
174
185
3,945
3,944
6,679
6,967
3,516
3,603
2010 2011 2010 2011 2010 2011 2010 2011
2.1%
0.0%
4.3%
2.5%
2.5%
Residential Industrial Commercial Others
Total
Captive Free
TOTAL ENERGY CONSUMPTION (GWh)
(CAPTIVE + FREE) - YEAR
22,384
22,932
19,459 19,877
2,924
3,056
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Consumption Breakdown
Residential Commercial Industrial Other classes
Share of the Companys
total market (%)
36.7 30.4 17.2 15.7
Number of billed clients
(captive market) 3,814,841 277,671 10,992 24,791
Number of billed clients
(free market)

- 99 25 3

Energy Losses
In accordance with Aneels calculation methodology, commercial,
or non-technical, losses in the 12 months ended December 2011
totaled 5,256 GWh, representing 40.5% of billed energy in the low-
voltage market, 0.2 p.p. and 1.3 p.p. down on September 2011
and December 2010, respectively.
Light SESAs total energy losses amounted to 7,591 GWh, or
21.70% of the grid load, in 2011, 0.17 p.p. and 0.41 p.p. up on
September 2011 and December 2010, respectively, due to the
migration of major clients to the core network, with a negative
impact on the grid load, which is the denominator of the index.
The declining trajectory of non-technical losses as a percentage of
the low-voltage market underlines the Companys increased
assertiveness in the fight against energy theft, especially in the
Baixada Fluminense region. Another contributory factor was the
project for regularization of fraudsters and clandestine consumers
in the pacified communities in the concession area, using new
technologies that reduce the possibility of energy theft.
Conventional energy recovery processes, such as the negotiation
of amounts owed by clients where fraud has been detected,
resulted in the recovery of 169.3 GWh in 2011, 12% down on the
previous year. Fraud regularization programs yielded a total of
67,964 regularized clients, 23.9% less than in 2010. Despite the
decline in both indices, the new inspection strategy increased
5,278 5,312 5,326 5,299
5,256
41.79%
41.61%
41.32%
40.69%
40.48%
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
Non Tecnical Losses / Low Voltage Market
12 months
Losses (GWh) Non tecnical Losses/Low Voltage Mkt (%)
7,493
7,543 7,619 7,627
7,591
21.29% 21.30% 21.42%
21.53% 21.70%
15.00% 15.00%
14.97%
14.96% 15.03%
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
Light Losses Evolution
12 months
Losses (GWh)
Losses/Grid Load (%)
Non-technical losses/Grid Load (%)
192.4
169.3
2010 2011
Recovered Energy (GW)
-12.0%
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19fmarf2012 9
incorporations to 140.4 GWh, up by 107,8%, demonstrating
the effectiveness of the regularizations and inspections.
In December 2011, there were 208,000 electronic meters
installed, 148,000 of which equipped with centralized
telemetering and manufactured by Landis and Elester, who
were approved by Inmetro in 2009 and 2011, respectively.
The products and services created by the R&D program,
related to the development of smart grids, were tested by
clients in one of the main social events in Rio de Janeiro, the
Feira da Providncia, which received around 330,000 visitors
in 2011. Light used the event to introduce its smart electricity
sockets and metering devices, as well as its pioneering
consumer interaction channels, including mobile phones,
tablets, TV, the internet and social networks.

Collection
In 2011, the collection rate came to 97.4%, 0.5 p.p. less than the 97.9% recorded in 2010, due to the
4.5 p.p. decline in the government segment rate, primarily due to payment of the final R$2.6 million
monthly CEDAE installment in December 2010. In addition, there were delays in the payment of two
bills from a major client totaling R$30 million for November and December 2011, which were settled at
the beginning of 2012. Nevertheless, both the government and the major client segments have
continued to present a collection rate of more than 100%. The retail segment's rate grew by 0.2 p.p.
over 2010.
In 2011, Provisions for Past Due Accounts (PPD) totaled R$251.3 million, corresponding to 3.1% of
gross billed energy, versus 3.2% in 2010.

89,366
67,964.0
2010 2011
Normalized Costumers
-23.9
67.6
140.4
2010 2011
Energy Incorporation GW
107.8
94.1%
100.8%
107.1%
94.3%
101.0%
102.6%
Retail Large Customers Public Sector
Collection Rate per Segment
Year
2010 2011
3.2% 3.2%
3.1%
2009 2010 2011
PDD/Gross Revenue (Billed Sales)
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Operating Quality
There are two indicators, regulated by ANEEL, DEC (equivalent length of interruption indicator) and
FEC (equivalent frequency of interruption indicator), which evaluate the performance of the
concessionaires in terms of the continuity of electricity services provided per consumption unit.
As of 2011, Light was divided by the regulations into 102 areas, equivalent to the catchment areas of
each of its high-voltage substations. Aneels overall annual targets were a DEC of 9.63 hours and a
FEC of 8.11 times. Light recorded a DEC of 16.73 hours and a FEC of 7.76 times.
DEC and FEC in 2011:
INDICATOR
Regulatory
Target
Overall
Result
Overall DEC
2011
9.63 16.73
Overall FEC
2011
8.11 7.76

DEC and FEC
Unit 2009 2010 2011
FEC Number of
interruptions 6 5.76 7.76

Unit 2009 2010 2011
DEC
Hours 10 11.33 16.73

Customer Service
Light measures the satisfaction of its retail customers through the Residential Customer Satisfaction
Survey, conducted by the Brazilian Association of Electricity Distributors (ABRADEE), in addition to its
own Service Satisfaction Survey. Light also conducts its own evaluation of the large client segment
through the Large Customer Satisfaction Survey, on an annual basis.
In 2011, Lights Perceived Quality Satisfaction Index (ISQP), which is the ABRADEE surveys main
indicator, increased by 6.6 p.p. over the previous year and was the Companys third-best result since
the first survey in 1999. The ISQP index measures residential customer satisfaction in terms of
product and service quality in five categories: energy supply, information and client communications,
electricity bills, customer service, and image.
The Company did particularly well in the customer service category, with an 8.3 p.p. improvement
over the previous year, recording its best result in the 13 years of the survey. It recorded its best
score of the five in the energy bill category, with 87.1% of satisfied or very satisfied customers.
In Lights own survey, the Service Satisfaction Index grew by 5.7 p.p. to 92.7%, the highest score
since its implementation in 2005. The interviews, conducted in September, only involve customers
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19fmarf2012 11
who have requested at least one of the services evaluated, which are: new low-voltage connection,
low-voltage replacement, low-voltage measurement, alteration/maintenance of low-voltage metering,
change in load increase and reduction of low-voltage load, rectification of name and address, and
opening of contract.
The Large Customer Satisfaction Survey indicated a satisfaction rate of 62%, 3 p.p. lower than in
2010.
In 2011, Light received three important recognitions from the Brazilian Institute for Customer
Relations (IBRC) for the quality of its service:
First place in the energy sector rankings in the 2011 Exame magazine/IBRC Customer Service
Survey;
LAC seal all Lights commercial branches were certified with the Loja Amiga do Cliente
(Customers Friend Store) seal for the second year in a row;
SAC seal Lights Call Center was certified with the Amigo do Cliente (Customer's Friend)
seal for the first time. Light is Brazils only energy distributor with these seals.

Generation
Sales totaled 5,508.6 GWh in 2011, 2.5% less than in 2010, due to the 24.6% decline in spot sales,
as a result of CCEE booking procedures, which failed to deduct the energy consumed by pumps in
the first half of 2010, totaling 83 average-MW. This was subsequently reversed.
In 2011, Light generated 4,518 MWh of net energy
1
, 5.3% lower than the 4,769 MWh recorded in
2010. All of the Companys electricity is hydro-generated in the basin formed by the Paraba do Sul
and Ribeiro das Lajes rivers. Light Energias generation complex comprises five plants with a joint
installed capacity of 855 MW, two pumping stations, two regulating reservoirs and six small
reservoirs, located in the states of Rio de Janeiro and So Paulo.
1
Gross generation less own consumption, water pumping and technical losses.

LIGHT ENERGIA (GWh) 2011 2010 %
Regulated Contracting Environment Sales
4,185.7 4,189.7 -0.1%
Free Contracting Environment Sales
619.8 529.5 17.1%
Spot Sales (CCEE)
703.1 932.7 -24.6%
Total 5,508.6 5,651.8 -2.5%
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Generation Capacity Expansion Projects
The Company is constantly analyzing its participation in greenfield or brownfield generation projects
to increase its installed capacity. Generation segment growth is in line with the strategic plan and its
ongoing projects will push up installed capacity by 75.4%, from the current 866MW to 1,519MW.
Paracambi SHP
Construction of the Paracambi SHP is now in the final stage and start-up of the two turbines is
scheduled for the first half of 2012. The Paracambi SHP will have an installed capacity of 25MW and
assured energy of 20 average-MW. Light holds a 51% interest in the project and CEMIG retains the
remaining 49%.
Lajes SHP
Construction of the New Feeder 1, part of the Lajes SHP water channeling system, has been
concluded and the unit is currently undergoing tests. The next phase is connecting the valve house to
the power house and constructing a 17MW turbine in the Fontes Velha power house. The Lajes SHP
basic construction project is awaiting approval by Aneel and the EPC bid will be made by 2Q12. The
project has already been granted an installation license and conclusion is scheduled for the end of
2013.
Itaocara Hydroelectric Power Plant
In September 2011, Aneel approved the division of Itaocara into two plants, due to the
difficulty of obtaining environmental licenses for its construction. Light and CEMIG will remain with
keep Itaocara I, with a projected capacity of 145MW, while the 50MW Itaocara II, according to Aneel,
will be available to any interested parties willing to conduct an inventory study. The preliminary
environmental license for the project was granted in late December and the conclusion of the works is
scheduled for the first half of 2015.
Renova Energia (Renova)
At the A-3/2011 Auction, Renova sold 103.6 average-MW of energy to be generated by nine
wind farms, all in the state of Bahia, which are scheduled for start-up in March 2014. Annual gross
revenue is estimated at R$91.6 million (at the auction price, excluding inflationary adjustments in line
with the IPCA consumer price index).
On December 6, 2011, the Company contracted financing for the Candiba, Ilhus, Igapor,
Licnio de Almeida and Pinda wind farms from the BNDES totaling R$297.4 million, corresponding to
around 70% of total investments. These five facilities are part of a complex of 14 wind farms with a
joint installed capacity of 293.6MW and are currently under construction, with operational start-up
scheduled for July 2012. By February 2012, 127 of the 184 foundations had been completed,
equivalent to 69% of the total, and 61 wind turbines had been assembled and installed.

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19fmarf2012 13
Commercialization and Services
In 2011, Light Esco sold 1,620.2 GWh, 35.4% up on 2010, reflecting the periods new long and short-
term operations, and the expansion of the sales contract portfolio.
Light Esco currently has 150 energy commercialization clients, versus 107 in December 2010.
Five of Light Escos ten ongoing service contracts were added in 2011, one of which is a co-
generation project for a major beverage producer and another is the construction of a solar power
plant for the Maracan soccer stadium.

Capital Expenditures
Light invested R$928.6 million in 2011, 32.5% more than in 2010.
The distribution segment absorbed most of the total R$774.8 million 46.9% up on 2010. Of this
total, R$335.6 million went to the development of distribution networks (new connections, capacity
increases and repairs) to keep pace with market growth and strengthen the network; R$200.5 million
to network quality improvements and preventive maintenance, in order to avoid power outages and
accidents involving the public; and R$184.3 million to the energy loss project (network protection,
electronic meters and fraud regularization). Investments in the underground network are recorded
under distribution network and quality improvement investments.
Generation investments totaled R$89,8 million, R$60.8 million of which went to new generation
projects, led by the Paracambi and Lajes SHPs (small hydroelectric plants), which absorbed R$34.1
million and R$21.6 million, respectively. Maintenance of existing generating facilities absorbed R$29.0
million.
Volume (GWh) 2011 2010 Var.%
1620.2 1196.6 35.4% Trading
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19fmarf2012 1+
5,680
5,956
6,150
527
553
795
2009 2010 2011
Net Revenue
(R$ million)
Net Revenue without construction revenue Construction revenue
6,207
6,309
6,943
4,642 4,724
5,271
527
553
795
2009 2010 2011
Costs and Expenses
(R$ million)
Costs/Expenses without construction Cost construction revenue
3,169
3,276
6,066
Comments on Financial Performance and Capital Markets
Financial Performance
Revenue
In 2011, excluding revenue from construction,
consolidated net revenue came to R$6,150.1
million, 3.3% higher than in 2010.The increase
in consolidated revenue mainly reflects the
3.0% upturn in revenue from distribution, due to
higher residential and commercial consumption
in the captive market, and the 4.9% increase in
revenue from generation, due to the increase in
other revenues, which consolidated the
results of Renova Energia S.A. as of
September 2011. Revenue from the
commercialization and service segment moved
up by 2.6% over 2010.

Costs and Expenses
In 2011, excluding construction costs,
operating costs and expenses climbed by
11.6% over the previous year, led by the
distribution and commercialization segments,
which recorded respective increases of 11.7%
and 7.2%.This increase can be primarily
explained by: (i) the 13.5% upturn in energy
purchase costs, mainly due to the 4.9% rise in
the volume of energy purchased, adjustments
to existing contracts, and the exchange
variation, which impacted the cost of energy
purchased from the Norte Fluminense thermal
plant, and (ii) the 11.7% increase in the
distribution companys manageable costs and
expenses.

NANAGENENT REPORT

19fmarf2012 15
EBITDA
Annual EBITDA came to R$1,243.6 million, 21.5% down on
2010, accompanied by an EBITDA margin4 of 20.2%, down
by 6.4 p.p. The distribution segment accounted for 79.3% of
the total, followed by the generation and commercialization
segments, with 19.5% and 1.3%, respectively.

Net Income
Light posted 2011 net income of R$310.6 million, 46.0%
down on the R$575.2 million recorded in 2010, mainly due
to the R$341.0 million reduction in EBITDA and the
R$138.3 million decline in the financial result. The EBITDA
variation was mainly due to the 12.2% increase in the
distribution companys non-manageable costs, while
financial expenses were primarily impacted by the R$84.0
million increase in servicing expenses from national and
BNDES debt, higher interest on taxes and the REFIS fine
and interest installments, totaling R$54.8 million.
In 2011, the Company recorded income and social contribution tax credits of R$29.5 million from
the payment of interest on equity.
Dividend Distribution Proposal
On March 2, 2012, the Board of Directors approved the proposal for the distribution of dividends
totaling R$181,501,313.40, or R$ 0.89 per share, on 2011 net income and part of the profit reserve in
the balance sheet of December 31, 2011, to be submitted to the Annual Shareholders Meeting of
April 11, 2012 for approval.

1,381
1,585
1,244
22.3% 24.3% 17.9%
2009 2010 2011
EBITDA
(R$ Million)
EBITDA EBITDA Margin
589
575
311
2009 2010 2011
Net Income
(R$ million)
NANAGENENT REPORT

19fmarf2012 16
Dividends Paid, Dividend Yield and Payout
Lights dividend payment policy establishes a minimum payout equivalent to 50% of adjusted net
income. In 2011, the payout came to 100% of adjusted net income, totaling R$556,014,610.28,
R$469,261,061.16 of which as dividends and R$86,753,549.12 as interest on equity.

Financial Situation
Net debt closed 2011 at R$3,383 million,
73,7% up on the end-of-2010 figure,
accompanied by a 12-month net debt/EBITDA
ratio of 2.7x. The increase was mainly due to:
(i) Light SESAs 7th debenture issue totaling
R$650 million; (ii) the R$440 million BNDES
loan to Light SESA, and (iii) Light SESAs
respective R$170 million and R$425 million
1st and 2nd debenture issues.

1,637
1,947
3,383
1.2 1.2
2.7
2009 2010 2011
Net Debt
(R$ Million)
Net Debt Net Debt/EBITDA
Deliberate events in 2011
AGM/EGM 4/28/2011 1.72 R$ 350,979,306.36 R$ 5/18/2011 2010 Dividends
BDM 12/16/2011 0.58 R$ 118,281,754.80 R$ 12/28/2011 2011 Dividends
BDM 12/16/2011 0.43 R$ 86,753,549.12 R$ Until 04/30/2012 2011 Interest On Equity
2.73 R$ 556,014,610.28 R$
Deliberate events in 2012
to be approved in AGM/EGM 4/11/2012 0.44 R$ 90,079,361.98 R$ Until 10/31/2012 2011 Dividends
to be approved in AGM/EGM 4/11/2012 0.45 R$ 91,421,951.42 R$ Until 10/31/2012 2010* Dividends
0.89 R$ 181,501,313.40 R$
*Existing Profit Reserve in the balance sheet of December 31, 2010
Board of Directors Meeting
Annual General Meeting
Extraordinary General Meeting
Type
Total
Total
Payment date Period
Approval dividend distribution
- Event
Approval
date
Dividend per
share
Amount
NANAGENENT REPORT

19fmarf2012 17
Corporate Governance and the Capital Market
On December 31, 2011, Light S.A.s capital stock consisted of 203,934,060 common shares with no
par value.
Lights Board of Directors is composed of 11 members, 2 of whom are elected independently, and is
supported by the following five committees: Finance, Management, Audit, Human Resources, and
Governance and Sustainability.

Light x Ibovespa x IEE
Base jan/11 = 100 until 02/29/2012
40
60
80
100
120
140
160
D
e
c
-
1
0
J
a
n
-
1
1
F
e
b
-
1
1
M
a
r
-
1
1
A
p
r
-
1
1
M
a
y
-
1
1
J
u
n
-
1
1
J
u
l
-
1
1
A
u
g
-
1
1
S
e
p
-
1
1
O
c
t
-
1
1
N
o
v
-
1
1
D
e
c
-
1
1
J
a
n
-
1
2
F
e
b
-
1
2
18% Light
-5% Ibovespa
26% IEE
R$/share
01/03/11 23.23
02/29/12 27.20
2010
IEE 20%
IBOV -18%
LIGT3 25%
2011
IEE 26%
IBOV -5%
LIGT3 18%
NANAGENENT REPORT

19fmarf2012 18
Changes in ownership structure in 2011
On May 12, 2011, Parati S.A. Participaes em Ativos de Energia Eltrica (Parati), a holding
company owned by CEMIG and Redentor Fundo de Investimento em Participaes (FIP Redentor),
acquired from FIP PCP 58,671,565 common shares representing 54.08% of the capital stock of
Redentor, an indirect shareholder of the Company, through its subsidiary RME - Rio Minas Energia
Participaes S.A., which holds 13.03% of the Companys capital. As a result, Parati now held an
indirect interest of 7.05% in Lights voting capital, while FIP Redentor held an indirect interest of
5.29%.
On July 7, 2011, Parati acquired, from Enlighted Partners Venture Capital Llc (Enlighted) 100% of
Luce LLC (Luce), the owner of seventy-five percent (75%) of Fip Luce, which in turn is the indirect
holder, through LEPSA, of twenty-six million, five hundred seventy-six thousand, one hundred and
forty-nine (26,576,149) common shares issued by the Company, representing approximately 13.03%
of its total and voting capital. Through this acquisition, Parati increased its indirect interest in the
Companys total and voting capital from 7.05% to 16.82%.
On July 29, 2011, Parati acquired the remaining 25% stake in Fip Luce from Braslight, giving it 100%
of that companys capital stock. Through this acquisition, Parati increased its indirect interest in the
Companys total and voting capital from 16.82% to 20.08%.
On October 3, 2011, Parati increased its interest in Redentor, which indirectly holds, through RME,
26,576,150 common shares issued by the Company, representing approximately 13.03% of its
capital, to 96.8%. As a result, Parati (including all its indirect interests) now held an indirect interest of
25.64% in the Company.

Ownership Structure
On December 31, 2011, Light was 52.13% owned by the Controlling Group, while the free float
comprised 47.87%, 15.02% of which held by BNDESPar and 32.85% under the control of minority
shareholders. The Controlling Group in turn comprises Companhia Energtica de Minas Gerais
(CEMIG), with 26.06%, Luce Empreendimentos e Participaes SA (LEPS) with 13.03% and Rio
Minas Energia SA (RME) with 13.03%.

NANAGENENT REPORT

19fmarf2012 19
Ownership structure on December 31, 2011

CEMIG RME
LEPSA
BNDESPAR MARKET
FIP LUCE
LUCE LLC
PARATI
CEMIG
FIP
REDENTOR
REDENTOR
ENERGIA
26.06% 13.03% 13.03% 15.02% 32.85%
100%
75% 25%
13.03% 13.03% 100%
96.80%
75% 9.77%
6.41% 19.23%
BTG
PACTUAL
SANTANDER
VOTORANTIM
BANCO DO
BRASIL
28.57%
5.49%
28.57%
5.49%
28.57%
5.49%
14.29%
2.75%
25%
MINORITY
3.20% 0.42%
Free Float 47.9%
100% 25.64%*
FOREIGN NATIONAL
78,3% 21,7%
Percentage in blue: indirect stake in Light
*12.61% (RME) + 13.03%(LEPSA)
Light S.A.
(Holding)
Controlling Shareholders 52.1%
NANAGENENT REPORT

19fmarf2012 20
The table below shows Lights shareholders and the respective number of shares.
Shareholders
No. of
Shares
Country Interest
Capital Stock
(R$)
RME - RIO MINAS ENERGIA
PARTICIPAES S.A
26,576,150 Brazil 13.03 290,063,291.07
COMPANHIA ENERGTICA DE
MINAS GERAIS S.A. - CEMIG
53,152,298 Brazil 26.06 580,126,560.31
LUCE EMPREENDIMENTOS E
PARTICIPAES S.A.
26,576,149 Brazil 13.03 290,063,280.15
BNDES PARTICIPAES S.A -
BNDESPAR
30,631,782 Brazil 15.02 334,328,166.35
THE PUBLIC 66,997,681 - 32.85 731,240,900.01
Total 203,934,060 100.00 2,225,822,197.89

NANAGENENT REPORT

19fmarf2012 21

Commitment to the Future
People Management
Lights workforce is the key driver for the Companys sustainable development based on ethical
conduct, competence and commitment. Consequently, it implements a series of initiatives, in line with
its strategic guidelines, mission and values, to foster the professional and personal development of its
4,134 employees.
The second edition (for managers) and the first edition (for employees) of the Competencies
Evaluation Program were held in 2011. The results of this evaluation are used to draw up the
Individual Development Plans (PDI), which are designed to guide and foster the development of the
Companys professionals, so that they can improve the competencies needed to perform their duties,
in terms of behavior, knowledge or ability. In 2011, the Light Academy offered distance-learning and
on-site development courses which had a total of 8,232 participations. All in all, 2,216 employees,
including managers and non-managers, benefited from the initiatives.
The Light Academy also invested in the training and development of Lights employees through the
Technical School, Leadership School, Development School and Trade School.
The Technical School provided more than 195,000 training hours in 2011, led by the Plant Operator
Training Program, the Substation Maintenance Training Program, and the Electrician Training School,
which qualified 124 new electricians for the distribution business. Of the five groups involved, two
were composed exclusively of pacified community residents.
The Leadership School held 126 coaching sessions with 77 managers, totaling 189 training hours,
and a new Leadership Development Program (PDL) cycle was initiated. Based on an in-depth
analysis of the organization, we addressed the organizational revitalization and development of the
management team, leaders and the HR area, realigning the organizational and people management
model with the Companys strategy and goals.
Through the Development School, the Light Academy encourages and supports the professional and
personal development of Lights employees, including the integration of newly-hired personnel, their
individual development, and the Recognition, Trainee and Employee Development programs. In
2011, the Employee Development Program (PDE) promoted exemplary behavior and attitudes,
strengthening proactivism, instilling a culture of responsibility, and engaging the employees in building
a Company that is recognized for its high-quality services and innovative solutions and is focused on
developing its business and its people. More than 3,600 employees participated in this program,
totaling over 28,000 training hours, with a record satisfaction index of 96% among the participants.
A total of 20 trainees took part in the 2011 Trainee Program, whose content was divided into five
modules (Organizational Culture, Technical, Project Tools, Light Business and Behavioral), with more
than 5,400 training hours.
NANAGENENT REPORT

19fmarf2012 22
Aiming to recognize and reward employees with outstanding attitudes and practices on a day-to-day
basis, the Recognition Program, based on the Companys values and employee competencies,
acknowledged 29 employees and 3 services providers in 2011.

Occupational Safety
Light makes use of an Occupational Health and Safety Management System to identify the dangers
and manage the risks related to occupational health and safety, with a permanent focus on
prevention. Workplace accident indicators affect the bonuses of the Companys executive officers and
the profit sharing of all employees.
In 2011, Light invested in safety technologies, workforce training, and weekly lectures. Unfortunately,
despite these efforts, five employees and eight members of the public suffered fatal accidents,
primarily due to behavioral aspects. As a result, in 2012 the Occupational Health and Safety area will
carry out a joint initiative with the Light Academy, focused on safe behavior. The Company will
continue to invest in safety campaigns targeting Lights surrounding communities.

Research and Development (R&D)
The Research & Development (R&D) program is prepared in accordance with Law 9991 of July 24,
2000, which establishes that electricity distribution concessionaires must invest 0.2% of their net
operating revenue in R&D projects, pursuant to Aneel Resolution 271 of July 19, 2000 and the
guidelines approved by Aneel Resolution 316 of May 13, 2008.
In 2011, already under the new Aneel regulation, 18 new projects were contracted with investments
of R$23.9 million, and 54 R&D projects were being executed up to December, 44 of which through
Light Servios de Eletricidade S.A. and 10 through Light Energia S.A.

Environment
Light's Environmental Management System (EMS) was implemented in 2001 with the purpose of
preventing several risks to the Company and establishing standards for all of its activities, handling
environmental issues and preventing fines, embargoes, environmental incidents, legal proceedings
and damage to the Company's image. In addition, all of the Company's plants meet ISO 14001
environmental requirements and OHSAS 18001 workplace health and safety requirements.
In 2011, 42 of Light's units received ISO 14001 certification, surpassing the target for this stage of the
program, which was 35 units, and another 53 were re-certified. As a result, 86% of its sites are now
certified. The certification process was fully supported by various teams to adjust the plants to the
standard's requirements. It is worth noting that low-voltage underground lines were certified for the
first time, broadening the EMS scope of activities.
NANAGENENT REPORT

19fmarf2012 23
In the distribution segment, environmental licenses were obtained for the implementation of new
projects, and the generation segment highlight was the reforestation of around 50 hectares of land
in the Lajes Complex.

Social Initiatives
Light contributes to the development of the city of Rio de Janeiro, creating opportunities, providing
safe, high-quality energy to all its clients and sponsoring social, sporting and cultural events, while
preserving the environment.
The Company has been operating in conjunction with the Pacifying Police Units (UPPs) and the state
government, to open inclusion channels and guarantee the citizenship of the residents of the pacified
communities.
In 2011, Light invested R$46.4 million in the communities in its catchment area, R$35 million of which
in improvements to the network, ensuring safe and exemplary services for all its clients, and R$11.4
million in the Efficient Community Program. It also sponsored sporting, cultural and musical projects
totaling R$1.4 million, R$326,000 of which from its own resources and R$1.1 million from government
incentives.
The Efficient Community Program has been held each year since 2002 as part of the Energy
Efficiency program regulated by Aneel and involves replacing old refrigerators and light bulbs with
more efficient ones, as well as developing initiatives to disseminate information and raise awareness
on the responsible use of energy among community members. Although these activities are
mandatory, Light goes well beyond the legal requirements by fostering the development of its
concession area as a whole. Examples include preserving the quilombolas (descendants of slaves)
as an ethnic group and exchanging recycling materials for electricity bill discounts (Recicla program).
Light also invests in preparing people to act independently of the project. The project field team is
mainly composed of residents of the various communities and electrician qualification courses are
provided.
Since operations began in the pacified communities, Light has achieved significant results, benefiting
the Company and the residents. In the Santa Marta community, for example, in two years the number
of registered clients has increased from 80 to 1,600, losses have fallen from 90% to 2.7% and default
has plunged from 70% to 2%. In the Chapu Mangueira community, the default rate also stood at 2%
(down from 74%), the number of clients grew from 408 to 550, and losses fell from 56% to 4%.
Also in 2011, Light gave residents of the pacified communities an opportunity to work at its call
center. This initiative, in partnership with Algar Tecnologia, which operates the center, received 365
applicants, 206 of whom fulfilled the main requirements and 37 of whom were hired.
NANAGENENT REPORT

19fmarf2012 2+
Other Information:

Independent Auditors
In accordance with CVM Instruction 381/2003, the Company hereby declares that KPMG Auditores
Independentes provides the Light Group with quarterly external audit and review services and did
not provide any other audit-related service in the fiscal year ending December 31, 2011.
This Management Report includes information related to projected investments and non-financial
data that does not pertain to the auditing of the financial statements and was therefore not
reviewed by the independent auditors.
NANAGENENT REPORT

19fmarf2012 25
Annual Social Balance Sheet / 2011
Company: CONSOLIDATED
1 - Calculation Basis
Net revenue (NR)
Operating prof it (OP)
Gross payroll (GP)
2 Internal Social Indicators Amount ('000) % on OP % on NR Amount ('000) % on OP % on NR
Meals 16,280 8% 0% 14,142 6% 0%
Compulsory social charges 41,181 20% 1% 35,428 16% 1%
Private pension 7,178 4% 0% 6,618 3% 0%
Health care plan 9,074 4% 0% 7,712 4% 0%
Occupational Safety and Health 392 0% 0% 98 0% 0%
Education 928 0% 0% 759 0% 0%
Culture 0 0% 0% 0 0% 0%
Prof essional training and development 6,321 3% 0% 5,736 3% 0%
Daycare centers or nursery allowance 641 0% 0% 481 0% 0%
Prof it sharing 11,552 6% 0% 15,146 7% 0%
Other 4,571 2% 0% 2,855 1% 0%
Total - Internal Social Indicators 98,118 48% 1% 88,975 41% 1%
3 External Social Indicators Amount ('000) % on OP % on NR Amount ('000) % on OP % on NR
Education 2,380 0% 0% 2,178 0% 0%
Dulcure 4,571 1% 0% 5,410 0% 0%
Health and sanitation 17,381 2% 0% 14,749 1% 0%
Soprts 243 0% 0% 497 0% 0%
Hunger eradication and f ood security 0 0% 0% 0 0% 0%
Other 34,898 4% 1% 51,221 4% 1%
Total contributions to society 59,473 7% 1% 74,055 6% 1%
Taxes (excluding social charges) 2,911,852 333% 42% 3,105,901 250% 48%
Total - External Social Indicators 2,971,325 340% 43% 3,179,956 256% 49%
4 Environmental Indicators Amount ('000) % on OP % on NR Amount ('000) % on OP % on NR
Investments related to the Companys production / operation 41,927 5% 1% 28,678 2% 0%
Investments in external programs and/or projects 0 0% 0% 0 0% 0%
Total environmental investments 41,927 5% 1% 28,678 2% 0%
With respect to the setting of annual goals to minimize residues,
the general consumption in production / operation, and improve the
ef f iciency in the use of natural resources, the Company
5 Staff Indicators 2011 2010
N of employees in the end of the period
N of employees hired during the period
N of outsourced employees
N of interns
N of employees above 45 years
N of f emale employees
% of management positions held by f emale employees
N of black employees
% of management positions held by black employees
N of physically-disabled employees or employees with special needs
6 Significant information with respect to the exercise of
corporate citizenship
Ratio between the highest and the lowest compensation in the
Total number of work accidents
The social and environmental projects developed by the Company
were def ined by:
( ) management ( X )
management
and managers
( ) all
employees
( ) management ( X )
management
and managers
( ) all
employees
The saf ety and health standards in the work environment were
def ined by:
( ) management
and managers
( ) all employees ( X ) all +Cipa ( ) management
and managers
( ) all employees ( X ) all +Cipa
With respect to the trade union f reedom, the right to collective and
to agreement and the internal representation of employees, the
( ) does not get
involved
( X ) follows OIT
standards
( ) incentivates
and follows OIT
( ) does not get
involved
( X ) will follow
OIT standards
( ) will incentive
and follow OIT
The private pension plan includes:
( ) management ( ) management
and managers
( X ) all
employees
and managers
( X ) all
employees
The prof it sharing includes:
and managers
( X ) all
employees
and managers
( X ) all
employees
In the selection of suppliers, the same ethical and social and
environmental responsibility standards adopted by the Company:
( ) are not
considered
( ) are
suggested
( X ) are requried ( ) will not be
considered
( ) will be
suggested
( X ) will be
required
With respect to the participation of employees in voluntary work
programs, the Company:
( ) does not get
involved
( ) supports ( X ) organizes
and incentivates
( ) does not get
involved
( ) will support ( X ) will organize
and incentivate
Total number of complaints and criticisms of consumers according
to the Ombudsman Of f ice
in the Company
17,661
in Procon
1,815
In court
31,384
in the Company
Reduce 10%
in Procon
Reduce 10%
in Court
Reduce 10%
% of complaints and criticisms received of resolved by the
Ombudsman Of f ice
in the Company
85%
in Procon
85%
In court
40%
in the Company
100%
in Procon
100%
in Court
100%
Total value added to distribution (in thousands of R$):
Distribution of value added:
7 Other Information
2011 Amount (thousand reais) 2010 Amount (thousand reais)
6,944,785 6,508,584
873,199 1,242,013
204,955 218,471
( ) does not have goals ( ) fulfills from 51to 75%
( ) fulfills from 0 to 50% ( x ) fulfills from 76 to
100%
( ) does not have goals ( ) fulfills from 51to 75%
( ) fulfills from 0 to 50% ( x ) fulfills from 76 to
100%
4,134 3,693
934 312
9,521 8,010
114 109
1,207 1,110
941 861
23.90% 23.10%
1,684 1,330
18.60% 16.90%
167 164
2011 2012 Targets
43.26 ND
32 0
In 2011: 4,864,881 In 2010: 5,084,931
74.84%government 4.31% employees
6.39%shareholders 14.46% 3rd parties 0%retain
73.68%government 4.56% employees
6.90% shareholders 11.61% 3rd parties 4.41% retain

19fmarf2012 26
Notes 12/31/2011 12/31/2010 12/31/2011 12/31/2010
ASSETS
Cash and cash equivalents 5 55.057 38.295 772.548 514.109
Marketable Securities 6 - - 8.171 11.122
Consumers, concessionaires,and permissionaires and clients 7 - - 1.383.620 1.338.704
Taxes and contributions 8 - - 158.962 115.252
Income tax and social contribution 9 3.395 1.080 111.649 163.633
Inventories - - 27.430 20.537
Dividends and interest on equity receivable 26 78.510 48.054 - -
Receivables from services rendered 150 146 84.964 59.724
Receivables from swap transactions 17 - - 3.801 -
Prepaid expenses 182 159 2.180 2.114
Other receivables 12 13.763 23.860 173.550 152.973
TOTAL CURRENT ASSETS 151.057 111.594 2.726.875 2.378.168
Consumers, concessionaires,and permissionaires and clients 7 - - 298.538 296.261
Deferred taxes 10 - - 811.464 899.265
Financial assets from concessions 11 - - 656.473 469.030
Receivables from swap transactions 17 - - 754 211
Escrow deposits 215 194 268.505 225.251
Prepaid expenses - - 263 714
Other receivables 12 - - 7.979 7.865
Investments 13 3.155.002 3.356.788 54.086 17.586
Property, plant and equipment 14 672 678 1.985.833 1.628.893
Intangible assets 15 - - 4.075.268 3.613.772
TOTAL NON-CURRENT ASSETS 3.155.889 3.357.660 8.254.785 7.216.756
TOTAL ASSETS 3.306.946 3.469.254 10.981.660 9.594.924
See Accompanying notes to the financial statemants
Parent Company Consolidated
LIGHT S.A.
(In thousands of reais)
BALANCE SHEETS

19fmarf2012 27
Notes 12/31/2011 12/31/2010 12/31/2011 12/31/2010
LIABILITIES
Suppliers 16 197 280 757.158 658.421
Taxes and contributions 8 8.911 30 108.760 119.238
Income tax and social contribution 9 2 1 60.974 230.931
Loans, financing and financial charges 17 - - 305.341 165.878
Debentures and financial charges 18 - - 213.740 381.332
Dividends and interest on equity payable 26 73.741 136.598 73.741 136.598
Estimated liabilities 233 220 47.379 45.264
Regulatory charges 19 - - 112.356 117.218
Post-employment benefits 22 - - 80.525 95.555
Other Payable 23 2.488 1.981 227.154 236.318
TOTAL CURRENT LIABILITIES 85.572 139.110 1.987.128 2.186.753
Loans, financing and financial charges 17 - - 1.854.724 1.197.500
Debentures and financial charges 18 - - 1.790.132 727.891
Deferred taxes 10 - - 243.335 275.755
Provisions 20 - - 515.678 551.897
Post-employment benefits 22 - - 1.015.615 920.630
Other Payable 23 - - 153.411 226.655
TOTAL NON-CURRENT LIABILITIES - - 5.773.158 4.078.027
SHAREHOLDERS' EQUITY
Capital stock 25 2.225.822 2.225.822 2.225.822 2.225.822
Profit reserves 25
Legal reserve 178.288 162.756 178.288 162.756
Profit retention 163.407 233.083 163.407 233.083
Proposed additional dividends 26 181.501 214.381 181.501 214.381
Equity valuation adjustments 472.356 494.102 472.356 494.102
TOTAL SHAREHOLDERS' EQUITY 3.221.374 3.330.144 3.221.374 3.330.144
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3.306.946 3.469.254 10.981.660 9.594.924
LIGHT S.A.
BALANCE SHEETS

19fmarf2012 28
Notes
2011 2010 2011 2010
NET OPERATING REVENUE 29 - - 6.944.785 6.508.584
COST OF OPERATIONS 31 - - (5.290.295) (4.633.841)
Electric power purchased for resale - - (3.828.031) (3.392.464)
Personnel - - (108.808) (168.302)
Material - - (21.377) (27.452)
Outsourced services - - (197.416) (156.965)
Depreciation and amortization - - (326.681) (311.224)
Construction costs - - (794.649) (552.831)
Other - - (13.333) (24.603)
GROSS PROFIT - - 1.654.490 1.874.743
OPERATING EXPENSES 31 (11.052) (6.772) (781.291) (632.730)
Selling expenses - - (307.974) (357.492)
General and administrative expenses (11.052) (6.772) (467.456) (285.066)
Other revenues/expenses - - (5.861) 9.828
EQUITY IN THE EARNINGS OF SUBSIDIARIES 320.502 579.394 - -
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 309.450 572.622 873.199 1.242.013
FINANCIAL INCOME 33 1.197 2.528 (457.661) (319.394)
Revenues 10.275 2.593 175.917 173.223
Expenses (9.078) (65) (633.578) (492.617)
RESULT BEFORE INCOME TAX AND
SOCIAL CONTRIBUTION 310.647 575.150 415.538 922.619
Current income tax and social contribution 9 - - (56.891) (103.482)
Deferred income tax and social contribution 10 - - (48.000) (243.987)
NET RESULT FROM CONTINUED OPERATIONS 310.647 575.150 310.647 575.150
NET INCOME FOR THE FISCAL YEAR 310.647 575.150 310.647 575.150
Attributed to partners of the parent company 310.647 575.150 310.647 575.150
BASIC AND DILUTED EARNINGS PER SHARE (R$ / Share) 28 1,52 2,82 1,52 2,82
LIGHT S.A.
FISCAL YEARS ENDED DECEMBER 31
INCOME STATEMENT

19fmarf2012 29
2011 2010 2011 2010
Net income before income tax and social contribution 310.647 575.150 415.538 922.619
Adjustments of expenses (revenues) not affecting cash
Allowance for doubtful accounts - - 251.313 254.785
Depreciation and amortization - - 80.422 80.714
Amortization of intangible assets - - 279.525 272.157
Loss (gain) from the sale of intangible assets / Residual value of derecognized property,
plant and equipment - - 6.240 (3.983)
Exchange losses (gains) from financial activities - - 18.026 (8.024)
Restatement of contingencies - - 25.695 44.498
Adjustment of receivables to present value - - (5.449) -
Interest expenses on loans - - 348.092 259.764
Charges and monetary variation on post-employment liabilities - - 174.408 158.886
Provision for / (Reversal of ) contingencies - liabilities - - 38.302 (42.039)
Equity income (320.502) (579.394) - -
Other - - - 10.654
(Increase)/Reduction in Assets
Marketable Securities - - 2.951 56.937
Consumers, concessionaires and permissionaires - - (291.993) (236.098)
Deferred fees, contributions and taxes (2.315) (306) (46.279) (37.865)
Dividends and interest on equity received 538.755 864.490 - -
Inventories - - (6.893) (6.168)
Receivables from services rendered - (146) (23.405) (13.709)
Prepaid expenses (23) 16 819 1.211
Escrow deposits (21) (42) (40.181) (24.731)
Other 11.511 (3.648) (24.845) (55.070)
Increase/(Reduction) in liabilities
Suppliers (83) (6.068) 94.768 94.240
Estimated liabilities 13 (4) 1.697 (7.108)
Deferred fees, contributions and taxes 8.882 (22) (74.755) 64.989
Sector charges - Consumer Contributions - - (4.862) (4.227)
Contingencies - - (100.216) (119.915)
Post-employment benefits - - (94.453) (99.131)
Other liabilities 1.277 320 (82.486) 20.156
Interests paid - - (341.080) (252.980)
Income and social contribution taxes paid - - (128.888) (98.042)
Net cash from operating activities 548.141 850.346 472.011 1.232.520
Cash flow from investment activities
Share acquisition - (45.352) - (45.352)
Receivables related to shares - 61.625 - 61.625
Receivables from the sale of property, plant and equipment - - 1.151 15.595
Receivables from the sale of financial asset / investment - - - 2.802
Acquisition of property, plant and equipment - - (192.943) (141.317)
Acquisition of intangible assets - - (548.688) (491.021)
Consumer contributions - - - 24.604
Acquisition of financial assets (concession) - - (187.822) (114.646)
Additions to/acquisition of investment (62.118) (47.564) (271.976) (3.976)
Net cash used in investment activities (62.118) (31.291) (1.200.278) (691.686)
Cash flow from financing activities
Dividends and interest on equity paid (469.261) (795.344) (469.261) (795.344)
Loans and financing - - 2.364.549 1.094.845
Amortization of loans and financing - - (908.582) (1.086.539)
Net cash used in financing activities (469.261) (795.344) 986.706 (787.038)
Net increase (decrease) in cash and cash equivalents 16.762 23.711 258.439 (246.204)
Cash and cash equivalents at the beginning of fiscal year 38.295 14.584 514.109 760.313
Cash and cash equivalents at the end of fiscal year 55.057 38.295 772.548 514.109
Changes in cash and cash equivalents 16.762 23.711 258.439 (246.204)
Parent Company
LIGHT S.A.
CASH FLOW STATEMENTS FOR THE FISCAL YEARS ENDED DECEMBER 31
Consolidated

19fmarf2012 30

RETAINED
PROPOSED EQUITY EARNINGS /
CAPITAL CAPITAL TREASURY LEGAL RETAINED ADDITIONAL VALUATION (ACCUMULATED) TOTAL
NOTES STOCK RESERVES SHARES RESERVE EARNINGS ADIVIDENDS ADJUSTMENTS LOSSES
BALANCE ON DECEMBER 31, 2009 2.22S.822 34.406 (6.361) 133.999 499.188 288.693 518.761 (140.880) 3.553.628
Realization of equity valuation adjustment - - - - - - (24.659) 24.659 -
Loss absorption adjustment to 1st time adoption of IFRS - - - - (114.319) - 114.319 -
Granted options vested - (12.243) - - - - - - (12.243)
Derecognition of treasury shares - (6.361) 6.361 - - - - - -
Transfer of unexercised options - (15.802) - - 15.802 - - - -
Adjustment to shareholding interest - - - - - - - 1.902 1.902
Dividends paid - profits reserve - - - - (363.002) - - - (363.002)
Payment of proposed additional dividends - - - - - (288.693) - - (288.693)
Net income for the fiscal year - - - - - - - 575.150 575.150
Allocation of net income for the year:
Legal reserve 26 - - - 28.757 - - - (28.757) -
Proposed dividends 26 - - - - - - - (136.598) (136.598)
Proposed additional dividends 26 - - - - - 214.381 - (214.381) -
Profit retention reserve 26 - - - - 195.414 - - (195.414) -
BALANCE ON DECEMBER 31, 2010 2.225.822 - - 162.756 233.083 214.381 494.102 - 3.330.144
Dividends paid - profit reserves - - - - - (214.381) - - (214.381)
Realization of equity valuation adjustment - - - - - - (21.746) 21.746 -
Dividends proposed - profit reserves/valuation adjustment - - - (69.676) 91.422 - (21.746) -
Net income for the fiscal year - - - - - - - 310.647 310.647
Allocation of net income for the year:
Legal reserve 26 - - - 15.532 - - - (15.532) -
Proposed dividends 26 - - - - - 90.079 - (90.079) -
Interim dividends proposed and paid 26 - - - - - - - (118.282) (118.282)
interest on equity 26 - - - - - - - (86.754) (86.754)
BALANCE ON DECEMBER 31, 2011 2.225.822 - - 178.288 163.407 181.501 472.356 - 3.221.374
See Accompanying notes to the financial statemants -
LIGHT S.A.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - CONSOLIDATED
PROFIT RESERVES
YEARS ENDED ON DECEMBER 31

19fmarf2012 31
2011 2010 2011 2010
Revenues - - 10.167.617 9.582.206
Sales of goods, products and services - - 10.418.930 9.836.991
Allowance/Reversal of allowance for doubtful accounts - - (251.313) (254.785)
Input acquired from third parties (7.402) (3.060) (5.114.099) (4.318.036)
Costs of products, goods and services sold - - (3.828.031) (3.392.464)
Material, energy, outsourced services, other (7.402) (3.060) (1.286.068) (925.572)
Gross added value (7.402) (3.060) 5.053.518 5.264.170
Retentions - - (364.554) (352.462)
Depreciation and amortization - - (364.554) (352.462)
Net value added (7.402) (3.060) 4.688.964 4.911.708
Value added received in transfers 330.777 581.987 175.917 173.223
Equity in the earnings of subsidiaries 320.502 579.394 - -
Financial income 10.275 2.593 175.917 173.223
Total added value to distribute 323.375 578.927 4.864.881 5.084.931
Distribution of added value 323.375 578.927 4.864.881 5.084.931
Personnel 3.477 3.492 209.790 231.752
Direct remuneration 3.190 3.182 158.303 156.253
Benefits 121 179 34.810 31.257
Government Severance Fund for Employees (FGTS) 166 131 16.677 15.393
Other - - - 28.849
Taxes, fees and contributions 193 233 3.640.820 3.746.405
Federal 193 233 1.367.559 1.517.026
State - - 2.264.702 2.220.013
Municipal - - 8.559 9.366
Third party capital remuneration 9.058 52 703.624 531.624
Interest 9.056 50 630.728 475.835
Rental 2 2 51.709 34.630
Other - - 21.187 21.159
Remuneration of own capital 310.647 575.150 310.647 575.150
Dividends and interest on equity 295.115 350.979 295.115 350.979
Retained earnings 15.532 224.171 15.532 224.171
LIGHT S.A.
STATEMENT OF VALUE ADDED FOR THE FISCAL YEARS ENDED DECEMEBR 31

19fmarf2012 32

TABLE OF CONTENTS
1. OPERATIONS
2. GROUPS ENTITIES
3. PRESENTATION OF THE FINANCIAL STATEMENTS
4. SUMMARY OF THE MAIN ACCOUNTING PRACTICES
5. CASH AND CASH EQUIVALENTS
6. MARKETABLE SECURITIES
7. CONSUMERS, CONCESSIONAIRES, PERMISSIONAIRES (CLIENTS)
8. TAXES AND CONTRIBUTIONS
9. INCOME TAX AND SOCIAL CONTRIBUTION
10. DEFERRED TAXES
11. CONCESSIONS FINANCIAL ASSETS
12. OTHER RECEIVABLES
13. INVESTMENTS
14. PROPERTY, PLANT AND EQUIPMENT
15. INTANGIBLE ASSETS
16. SUPPLIERS
17. LOANS, FINANCING AND FINANCIAL CHARGES
18. DEBENTURES AND FINANCIAL CHARGES
19. REGULATORY CHARGES
20. PROVISIONS
21. CONTINGENCIES
22. POST-EMPLOYMENT BENEFITS
23. OTHER PAYABLES
24. RELATED-PARTY TRANSACTIONS
25. SHAREHOLDERS EQUITY
26. DIVIDENDS AND INTEREST ON EQUITY
27. PROFIT SHARING
28. EARNINGS PER SHARE
29. NET OPERATING REVENUE BREAKDOWN
30. ELECTRIC POWER SUPPLY
31. OPERATING COSTS AND EXPENSES
32. ELECTRIC POWER PURCHASED FOR RESALE
33. FINANCIAL INCOME
34. FINANCIAL INSTRUMENTS AND RISK MANAGMENT
35. INSURANCE
36. ENVIRONMENTAL ISSUES
37. SEGMENT REPORTING
38. TARIFF ADJUSTMENT
39. LONG-TERM INCENTIVE PLAN
40. LONG-TERM CONTRACTS
41. SUBSEQUENT EVENTS

19fmarf2012 33

NC1LS 1C 1nL IINANCIAL S1A1LMLN1S

IISCAL LAkS LNDLD DLCLM8Lk 31
st
, 2011 AND 2010

1. OPERATIONS

The corporate purpose of Light S.A. (Company), a publicly-held company headquartered in the City of
Rio de Janeiro/RJ - Brazil, is to hold equity interests in other companies, as partner or shareholder, and
is involved in the direct or indirect exploration, as applicable, of electric power services, including
electric power generation, transmission, sale and distribution systems, as well as other related services.

The Company is listed in the New Market (Novo Mercado) of the So Paulo Stock Exchange (BM&F
Bovespa) under the ticker LIGT3.

a) Light Groups concessions and authorizations

On June 4, 1996, the Concession Agreement No. 001/96 was entered into between the federal
government (granting authority through the Brazilian Electricity Regulatory Agency, ANEEL) and
subsidiary Light SESA, regulating the exploration of electric power public utility services in the State
of Rio de Janeiro, comprising the generation and distribution of electric power. Said agreements
duration is 30 years, and may be renewed upon concessionaires request and at granting authoritys
exclusive discretion. In September 2005, a contractual amendment was signed due to the change in the
Companys controlling interest.

As set forth in the concession agreement, all assets and facilities bound by electric power distribution
services and provided by concessionaire are deemed reversible and encompass respective concessions
assets. These assets will automatically reverse to the granting authority at the expiration of the
agreement, valuations must be conducted and indemnity owed to the concessionaire must be
determined, observing the amounts and dates of incorporation into the electric system.

Below, Concessionaires main obligations provided for in the concession agreement:

i) Provide electric power to consumers located within its concession area, according to tariffs ratified
by granting authority, within levels of quality and continuity provided for by laws.

ii) Conduct the works necessary to provide concession services, so that to ensure the continuity,
regularity, quality and efficiency of services.

iii) Maintain records and inventory of concession-related assets and ensure their entirety. The sale,
assignment or donation in mortgage guarantee of real properties or facilities essential parts rely on
granting authoritys previous and express authorization.

iv) Comply with and cause the compliance with legal and regulatory service standards, answering
before the granting authority, users and third parties for any damages caused by exploration of
services.

v) Meet all the tax, labor and social security liabilities, charges deriving from regulatory rules laid
down by granting authority.

19fmarf2012 3+

vi) Allow at any time to granting authoritys inspectors free access to the works, equipment and
facilities used by services, as well as its accounting records.

vii) Provide accountability to the granting authority and users, according to specific legal and
regulatory precepts, concession services management.

viii) Mantain water reservoirs and electric power required to provide public utility services.

ix) Abide by environmental protection laws, being liable for any consequences due to failure to
comply.

x) Conduct training programs, so that to permanently ensure the improvement of quality and greater
efficiency in concession services provided.

xi) Participate in the sector planning and drafting of the National Electric System expansion plans,
implementing and causing the compliance with technical and administrative recommendations
deriving therefrom within its concession area.

xii) Adhere to the National System of Electric Power Transmission and ensure free access to its
transmission and distribution systems.

xiii) Compose the Interconnected Operation Coordinating Group - GCOI, operating its facilities
according to prevailing rules and concessionaire shall accept and apply any new resolutions,
recommendations and instructions issued by GCOI.

xiv) Observe, pursuant to prevailing laws, the limits of maximum and minimum downstream flow
control of its hydroelectric developments and shall consider in operational rules the allocation of
downtime volume in its power plants reservoirs, so that to minimize floods adverse effects.

xv) When determined by granting authority, supply electric power to other concessionaires and
interconnections required, according to the planning in order to meet the market.

The concessionaire is entitled to charge from consumers the tariffs established and ratified by the
granting authority for execution of services. Tariffs will be yearly adjusted and concessionaires
revenue will be divided into two portions: Portion A (composed of non-manageable costs) and Portion
B (efficient operating costs and costs of capital). The annual tariff adjustment aims at transferring non-
manageable costs and monetarily restating manageable costs.

The tariff is periodically reviewed every five years and aims at recovering the concessions economic
and financial breakeven. The next tariff reviews reference date will be November 2013. In this
process, ANEEL re-calculates tariffs, taking into account changes in costs structure and
concessionaires market, stimulating efficient and reasonable tariffs. Adjustments and reviews are tariff
adjustment mechanisms, both provided for in the concession agreement. Concessionaire may also
request an extraordinary review whenever any event causes any relevant economic and financial
imbalance of concession.

19fmarf2012 35
The concession may be extinguished at the expiration of the agreement, services absorption, forfeiture,
termination, irregularities or concessionaires bankruptcy.

The concessionaires majority controlling interest cannot be transferred without the granting
authoritys previous consent. In the event shares representing the controlling interest are transferred,
the new controlling shareholder shall sign an instrument of consent and submit the clauses of
concession agreement to the concessions legal and regulatory rules.

Below, Light Groups concessions and authorizations effective on December 31
st
, 2011:

Concessions / grants Date Expiration
Generation, Transmission and Distribution July/1996 Jun/2026
PCH Paracambi Feb/2001 Feb/2031
Itaocara Hydroelectric Power Plant Mar/2001 Mar/2036
Wind Power Plants - Renova Aug/2011 Aug/2045
Wind Power Plants - Renova Mar/2011 to May/2011 Mar/2046 to May/2046
Wind Power Plants - Renova Apr/2012 Apr/2047

2. GROUPS ENTITIES

a) Acquisition of interest

i. Acquisition of interest in Renova Energia S.A. (Renova)

On August 17, 2011, subsidiary Light Energia S.A. acquired 34.85% of Renovas common shares
and 25.85% of its total capital, thus composing the controlling group owned by RR Participaes
S.A. Shareholders agreement set forth the joint control between Light Energia and RR
Participaes S.A. The amount of net assets acquired from Renova, at fair value was R$163,288
and the amount paid was R$360,000. The difference between fair value and amount paid refers to
the surplus value concession, an identifiable intangible assets, allocated under intangibles in
consolidated balance sheet, as shown below. This asset will be amortized by concession terms as
of the startup of each asset.

19fmarf2012 36

Acquired identifiable assets and assumed liabilities
Current assets 136,145
Property, plant and equipment 243,814
Intangible assets 196,712
Other non-current assets 5,158
Current liabilities 101,213
Non-current liabilities 120,616
Total net amount of identifiable assets 360,000

ii. Acquisition of interest in CR Zongshen E-Power Fabricadora de Veculos S.A. (E-Power)

On September 9, 2011, Light S.A. concluded the procedures necessary to acquire 20% of
registered common shares issued by E-Power for R$120. Shareholders agreement set forth the
joint control between the Company and CR Zongshen Fabricadora de Veculos S.A. There was
no difference between fair value and paid amount.

iii. Capital injected into Amaznia Energia Participaes S.A. (Amaznia Energia) to acquire
interest in Norte Energia S.A. (Norte Energia)

On October 31, 2011, Light S.A, through Amaznia Energia, subsidiary jointly controlled by
Light S.A. (51.0% of common shares and 25.5% of total capital) and by Cemig Gerao e
Transmisso S.A. (49.0% of common shares and 74.5% of total capital) acquired an interest of
9.77% in Norte Energia, a publicly-held company, holder of concession for construction and
exploration of Belo Monte hydroelectric power plant (UHE Belo Monte). Norte Energias
shareholders agreement characterized the relevant influence of Amaznia Energia in Norte
Energia, since Amaznia is entitled to appoint a member of the Board of Directors and a
member of Norte Energias Board of Executive Officers. Lights indirect interest in Norte
Energia stood at 2.49%. The value of net assets acquired from Norte Energia, at fair value was
R$28,770 and the amount paid was R$30,266. The difference between fair value and paid
amount refers to the concessions surplus value and will be amortized by concession term as of
UHE Belo Montes startup.

b) Direct Subsidiaries

Light Servios de Eletricidade S.A. (Light SESA 100%) - Publicly-held corporation engaged in the
distribution of electric power, with a concession area comprising 31 cities in the State of Rio de
Janeiro, including its capital.

Light Energia S.A. - (Light Energia 100%) - Privately-held corporation, headquartered in the city of
Rio de Janeiro, whose main activity is to (a) study, plan, construct, operate and exploit systems of
electric power generation, transmission, sales, and related services that have been legally granted or to
be granted or authorized or to companies with which it holds or to hold controlling interest; (b) to hold
interest in other companies as a partner, shareholder or quotaholder. It comprises the Pereira Passos,

19fmarf2012 37
Nilo Peanha, Ilha dos Pombos, Santa Branca and Fontes Novas plants, with a total installed capacity
of 855 MW. Light Energia holds interest in the following subsidiaries:

Central Elica So Judas Tadeu Ltda. (So Judas Tadeu 100%) - Company at a pre-operating
stage whose main activity is the generation and sale of electric power through an wind power
plant located in the state of Cear, with 18 MW nominal power.

Central Elica Fontainha Ltda. (Fontainha 100%) - Company at a pre-operating stage whose
main activity is the generation and sale of electric power through an wind power plant located
in the state of Cear, with 16 MW nominal power.

Renova Energia S.A. (25.85% interest held, joint venture) a corporation whose main activity
is the generation of electric power through renewable alternative sources, such as, small
hydroelectric power plants (PCHs) and wind power plants. Renova Energia holds direct or
indirect interest in the following companies: Enerbras Centrais Eltricas S.A., Energtica Serra
da Prata S.A., Renova PCH Ltda., Nova Renova Energia S.A., Bahia Elica Participaes S.A.,
Centrais Elicas Candiba S.A., Centrais Elicas Ilhus S.A., Centrais Elicas Igapor S.A.,
Centrais Elicas Licnio de Almeida S.A., Centrais Elicas Pinda S.A., Salvador Elica
Participaes S.A., Centrais Elicas Alvorada S.A., Centrais Elicas Guanambi S.A., Centrais
Elicas Guirap S.A., Centrais Elicas Rio Verde S.A., Centrais Elicas Serra do Salto S.A.,
Centrais Elicas Nossa Senhora Conceio S.A., Centrais Elicas Paje do Vento S.A.,
Centrais Elicas Planaltina S.A., Centrais Elicas Porto Seguro S.A., Centrais Elicas Ametista
Ltda., Centrais Elicas dos Araas Ltda., Centrais Elicas Caetit Ltda., Centrais Elicas
Espigo Ltda., Centrais Elicas Piles Ltda., Centrais Elicas So Salvador Ltda., Centrais
Elicas Ventos do Nordeste Ltda., Centrais Elicas Da Prata Ltda., Centrais Eltricas Tanque
Ltda., Centrais Elicas Serra do Espinhao Ltda., Centrais Elicas Serama Ltda., Centrais
Eltricas Pelourinho Ltda., Centrais Eltricas Morro Ltda., Centrais Eltricas Maron Ltda.,
Centrais Eltricas Itaparica Ltda., Centrais Eltricas Dourados Ltda., Centrais Eltricas
Botuquara Ltda. e Centrais Eltricas Borgo Ltda., totaling 42 MW operating and 1,068 MW
contracted.

Light Esco Prestao de Servios S.A. - (Light Esco 100%) Privately-held corporation ,
headquartered in the city of Rio de Janeiro - RJ, whose main activity is the purchase, sale, import,
export and provision of advisory services in the energy sector. Light Esco holds interest in the
following jointly-owned subsidiary:

EBL Companhia de Eficincia Energtica S.A. (stake of 33%, , jointly-owned subsidiary) a
company engaged in providing energy efficiency solutions and rental of equipment and
facilities at units owned or rented by Telemar Norte Leste S.A.

Lightcom Comercializadora de Energia S.A. (Lightcom 100%) Privately-held corporation,
headquartered in the city of So Paulo - SP, engaged in the purchase, sale, import, export and provision
of advisory services in the energy sector.

Itaocara Energia Ltda. - (Itaocara Energia 100%) Company in the pre-operating stage, primarily
engaged in the execution of project, construction, installation, operation and exploration of electric
power generation plants. It holds interest in UHE Itaocara consortium for the exploration of Itaocara
Hydroelectric Power Plant.

19fmarf2012 38
Light Solues em Eletricidade Ltda (previously referred to as Lighthidro). (Light Solues - 100%)
Limited liability company whose main activity is to provide services to low voltage clients, including
assembly, improvement and maintenance of installations in general.

Instituto Light para o Desenvolvimento Urbano e Social (Light Institute - 100%) Non-profit private
limited company, engaged in participating in social and cultural projects, with interest in the cities
economic and social development, affirming the Companys ability to be socially responsible.

c) Joint ventures

Lightger S.A. (Lightger) - Company in the pre-operating stage, purpose of which is to participate in
auctions for concession, authorization and permission for new plants. On December 24
th
, 2008,
Lightger obtained the installation license that authorizes the start of implementation works of
Paracambi small hydroelectric power plant (PCH). Jointly controlled by Light S.A (51%) and by
Cemig Gerao e Transmisso S.A. Cemig GT (49%).

Axxiom Solues Tecnolgicas S.A. (Axxiom) Privately-held corporation, headquartered in the city
of Belo Horizonte - MG, whose purpose is to offer technology solutions and systems for operating
management of public utilities companies, including electric power, gas, water and sewage, in addition
to other public utilities. It is jointly controlled by Light S.A (51%) and Companhia Energtica de
Minas Gerais - CEMIG (49%).

CR Zongshen E-Power Fabricadora de Veculos S.A. (E-Power) company in the pre-operating stage,
the purpose of which is to manufacture Kasinski two-wheel electric vehicles. Light S.A. and CR
Zongeshen Fabricadora de Veculos S.A., referred to as Kasinski are the Companys shareholders,
with 20% and 80% interest, respectively, of E-Power registered common shares.

Amaznia Energia Participaes S.A. (Amaznia Energia) Privately-held company whose purpose is
to hold interest, as shareholder, in the capital stock of Norte Energia S.A., a company which holds the
concession for the use of public asset to explore Belo Monte Hydroelectric Power Plant, in Xingu
river, in the State of Par and manage this interest. Jointly controlled by Light S.A. (51%) and by
Cemig Gerao e Transmisso S.A. - Cemig GT (49%).

d) Light Group Consolidation

The consolidated financial statements include shareholding of the Company and its subsidiaries, which
are consolidated in the following bases:

19fmarf2012 39
Percentage of Percentage of Percentage of Percentage of
interest (%) interest (%) interest (%) interest (%)
Direct Indirect Direct Indirect
Light Servios de Eletricidade S.A. 100.0 - 100.0 -
Light Energia S.A 100.0 - 100.0 -
Central Elica Fontainha Ltda - 100.0 - 100.0
Central Elica So Judas Tadeu Ltda - 100.0 - 100.0
Renova Energia S.A. - 25.9 - -
Light Esco Prestao de Servios S.A. 100.0 - 100.0 -
EBL Companhia de Eficincia Energtica S.A - 33.3 - 33.3
Lightcom Comercializadora de Energia S.A 100.0 - 100.0 -
Light Solues em Eletricidade Ltda. 100.0 - 100.0 -
Instituto Light para o Desenvolvimento Urbano e Social 100.0 - 100.0 -
Itaocara Energia Ltda. 100.0 - 100.0 -
Lightger S.A. 51.0 - 51.0 -
Axxiom Solues Tecnolgicas S.A. 51.0 - 51.0 -
Amaznia Energia 25.5 - - -
CR Zongshen E-Power Fabricadora de Veculos S.A 20.0 - - -
12/31/2010 12/31/2011

3. PRESENTATION OF THE FINANCIAL STATEMENTS

a) Declaration of conformity

Consolidated Financial Statements
The consolidated financial statements were prepared according to the International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and also
according to accounting practices adopted in Brazil (BR GAAP).
Individual Financial Statements

The individual financial statements are presented according to the accounting practices adopted in
Brazil (BR GAAP), and in accordance with CVM rules applicable to the preparation of the Financial
Statements - DFP.

These practices differ from the IFRS applicable to individual financial statements due to the evaluation
of investments in subsidiaries, associated companies and joint ventures by the equity method in BR
GAAP, whilst for IFRS purposes, it would be calculated at cost or fair value.

However, there is no difference between the consolidated shareholders equity and result of
operations, presented by the Company, and the shareholders equity and result of operations of the
parent Company presented in its individual financial statements. Therefore, the Companys
consolidated financial statements and the individual financial statements of the parent Company are
being presented side-by-side in a sole set of financial statements.

The Company did not calculete comprehensive income, which is the reason that it is not presenting the
Comprehensive Income Statement.

The authorization to conclude this financial statements was given by the Companys Management at
March 2, 2012.

b) Basis of measurement

The financial statements were prepared based at historical cost, except for the following items:

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Financial instruments measured by fair value through the profit and loss;

The defined benefit actuarial asset is recognized as the sun net total of plan assets and the
present value of the defined benefit liability.

c) Functional currency and presentation currency

These financial statements are presented in Real, which is the Companys functional currency. All
financial information presented in Real was rounded up to the next thousand figure, except when
indicated otherwise.

d) Use of estimates and judgment

The preparation of the financial statements according to the IFRS and BR GAAP standards demand
the Management to make certain judgments, estimates and premises that affect the application of
accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual
results may differ from these estimates.

Estimates and assumptions are continuously reviewed. Reviews regarding accounting estimates are
recognized in the fiscal year when the estimates are effectively reviewed and in any affected future
year.

Information about premises and estimates that have a significant risk of resulting in material
adjustments within the next financial year are included in the following Notes:

Note 07 Consumers, concessionaires, permissionaires and clients (allowance for doubtful accounts)
Note 10 Deferred taxes
Note 20 Provisions
Note 21 Contingencies
Note 22 Post employment benefits
Note 30 Electric power supply (non-billed)

4. SUMMARY OF THE MAIN ACCOUNTING PRACTICES

The accounting policies described in details below have been applied consistently to all fiscal years
presented in these financial statements and all the Groups entities.

a) Basis of consolidation:

i. Acquisition of interest

The subsidiaries and joint ventures financial statements are included in the consolidated
financial statements from the date when control or shared control begins until the date when
control or shared control ceases to exist. Accounting policies of subsidiaries and joint ventures
are jointly aligned with policies applied by the Group.

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The subsidiaries and Joint ventures as well as associated companies financial information are
recognized in the individual financial statements of the parent company through the equity
method.

ii. Investments in associated companies

The associated companies are those entities in which the Companys, directly or indirectly, has
relevant influence, but not controls their financial and operational policies.

Investments in associated companies are recorded through the equity method both in individual
financial statements and consolidated financial statements and are initially recognized at cost.
The financial statements include associated companies equity variations, after adjustments to
align its accounting policies with Groups accounting policies, as of the date a relevant
influence starts to occur until the date when that relevant influence ceases to exist.

iii. Joint ventures

A joint venture is an operation in which each owner uses his own assets aiming jointly-owned
operations. Consolidated financial statements include the assets the Group controls and
liabilities incurred during the course of activities aiming the joint venture, and expenses
incurred by the Group and its contribution to the revenues earned from the joint venture.

iv. Transactions eliminated in the consolidation

Intragroup balances and transactions, and any unrealized revenues or expenditures derived
from intragroup transactions, were eliminated in preparing the consolidated financial
statements. Unrealized gains in transactions with subsidiaries recorded by the equity method
were offset against the relevant investment proportionate to the Groups interest in investee.
Unrealized losses were eliminated using the same method employed to unrealized gains,
however only to the extent that there is no evidence of any impairment loss.

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b) Financial instruments

i.Non-derivative financial assets

The Company initially recognizes loans and receivables on the inception date. All other
financial assets (including assets designated at fair value through profit and loss) are
initially recognized on the negotiation date on which the Company becomes one of the
parties to the contractual provisions.

The Company derecognizes a financial asset when the contractual rights to cash flows of
the asset expire, or when the Company transfers the rights to receive contractual cash
flows over a financial asset in a transaction in which essentially all risks and benefits
inherent to the ownership of the financial asset are transferred. Occasional participations
created or held by the Company in financial assets are recorded as individual assets or
liabilities.

The Company classifies non-derivative financial assets in the following categories:
financial assets recorded at fair value through profit and loss and loans and receivables.

Financial assets recorded at fair value through profit and loss

A financial asset is classified at fair value through profit and loss if it is classified as
held for trading or is designated as such at the moment of its initial recording. Financial
assets are designated as fair value through profit and loss if the Company manages such
investments and make purchase and sale decisions based on their fair values, according
to its risk management and its investment strategy. Transaction costs are recorded in the
income statement as incurred. Financial assets recorded at fair value through profit and
loss are measured at fair value and changes of assets fair value are recognized in the
income statement.

Financial assets designated at fair value through profit and loss comprise cash and cash
equivalents and marketable securities.

Loans and receivables

Financial assets with fixed or calculated installments which are not rated in the active
market. Such assets are initially recorded at fair value plus any attributable transaction
costs. After initial recognition, loans and receivables are measured by amortized cost
through the effective interest rate method, less any losses from impairment.

Loans and receivable comprise cash, accounts receivable, concessions financial assets
and other receivables.

Cash and cash equivalents

Include cash, bank deposits and immediate liquidity financial investments, originally
due within three months from the engagement date or subject to non-significant value
risks, and are held aiming at meeting short-term cash commitments, not for investments
or other purposes.

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Concessions financial assets

The Company recognizes a financial asset deriving from concession agreements when it
has unconditional right to receive cash or another financial asset from the granting
authority or party designated by it at the end of the concession, as provided in contract,
as an indemnification for construction services performed and not received through
services rendered related to the concession. These financial assets are measured at fair
value at the initial recognition and are classified as loans and receivables. After the
initial recognition, financial assets are measured by amortized cost. These assets are
remunerated via tariff, at the average investment remuneration rate, represented by the
cost of capital (regulatory WACC), established by ANEEL , being this amount monthly
recognized as financial revenue, in the group of operating revenue.

ii.Non derivative financial liabilities

The Company initially recognizes debt securities issued and subordinated liabilities on the
inception date. All of the other financial liabilities (including liabilities designated at fair
value recorded in the income statement) are initially recognized on the date of negotiation
when the Company becomes a party to the instruments contractual provisions. The
Company writes-off a financial liability when its contractual obligations are withdrawn,
cancelled or expired.

The Company classifies non-derivative financial liabilities under other financial liabilities
category. Such financial liabilities are initially recognized at fair value plus any attributable
transaction costs. After initial recognition, these financial liabilities are measured by
amortized cost through the effective interest rate method.

The Company has the following non-derivative financial liabilities: loans, financing,
debentures, suppliers and other debts.

iii.Derivative financial instruments

The Company operates with derivative financial instruments to hedge against foreign
exchange variation and interest rate risks.

Derivatives are initially recognized at fair value and attributable transaction costs are
recognized in the income statement as incurred. After initial recognition, derivatives are
measured at fair value and fair value variations are immediately accounted for in the income
statement.

iv. Capital stock

Common shares are classified as shareholders equity. Additional costs directly
attributable to the issue of shares and stock options are recognized as shareholders' equity
deduction, net of any tax effects.

Minimum mandatory dividends are recognized as liabilities as defined in the Companys
Bylaws.

c) Consumers, concessionaries and permissionaires (clients)

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Include electric power supplying, billed and unbilled, moratory charges, interest for arrears and
electricity traded with other concessionaries for electricity supply, according to the amounts
available in the Electric Energy Trade Chamber (CCEE).

The allowance for doubtful accounts is recorded based on the Managements estimates in amount
sufficient to cover any losses. Main criteria defined by the Company for low and medium voltage
consumers are: (i) for consumers with significant amounts, an analysis is conducted on the balance
receivable taking into account the debt track record, negotiations in progress and security interest;
(ii) for other consumers, debts overdue by more than 90 days for residential consumers, another 180
days for commercial consumers or another 360 days for other consumers, 100% of balance is
accrued. Debtors individual analysis is conducted for large consumers and lawsuits in progress to
receive credits. These credits do not differ from those defined by ANEEL.

d) Inventories

Inventories are recorded at average acquisition cost and do not exceed their replacement costs or
realizable values, less allowances for losses, when applicable. Inventories materials are classified
into Current Assets (maintenance and administration warehouse) and those destined to investments,
classified into Non-Current Assets Fixed or Intangible Assets (warehouse).

e) Investments

The subsidiaries and joint ventures financial information are recognized in the individual financial
statements of the parent company through the equity method, initially at cost. The Companys
investments include the goodwill identified in the acquisition of interest, net of any accumulated
losses due to impairment.

f) Fixed assets

Only tangible assets not linked to the infrastructure of the concession are recorded in this account.

i. Recognition and measurement

Measured at acquisition, formation or construction cost, less accumulated depreciation.

Costs include expenses directly attributable to the acquisition of an asset. The costs of assets
built by the Company itself include:

The cost of materials and direct labor;
Any other costs to put the asset in place and conditions necessary so that they are
capable of operating as planned by the Management;
Costs of loans over qualifying assets.

When parts of an item of fixed assets have different useful lives, these are recorded as
individual items (main components) of fixed assets.

Gains and losses on the disposal of an item of fixed assets (determined by the difference

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between resources deriving from disposal and fixed assets book value), are recognized
under other operating revenues/expenses in the profit & loss statement.

ii. Subsequent costs

Subsequent costs are capitalized to the extent that future benefits associated with
expenditures will be earned by the Company. Recurring maintenance and repair costs are
recorded in the income statement.

iii. Depreciation

Items of fixed assets are depreciated by the straight-line method in the income statement
based on each components estimated economic useful life. Assets estimated economic
useful life is in line with those set forth by ANEEL. Leased assets are depreciated by the
shortest period between assets estimated useful life and the contractual term, unless if the
Company will obtain the assets ownership at the expiration of lease. Lands are not
depreciated.

Items of fixed assets are depreciated as of the date they are installed and are available for
use, or in case of assets internally built, the date when construction is complete and asset is
available for use.

Estimated useful lives for current and comparative year are shown in Note 14. Any
adjustments to the depreciation methods, useful lives or residual values are recognized as
change of accounting estimates.

g) Intangible assets

i. Concession agreements and infrastructure assets linked to the concession

The Company recognizes an intangible asset deriving from a concession agreement when it is
entitled to charge for the use of concessions infrastructure. An intangible asset received as
consideration for construction services and improvement provided in a concession agreement
is measured at fair value upon initial recognition. Following initial recognition, the intangible
asset is measured at cost, which includes capitalized loans, less accumulated amortization.

The estimate of an intangible assets useful life in a concession agreement is the period
counted when the Company is capable of charging consumers for the use of infrastructure
until the end of concession period.

ii. Research and Development

Expenditures in research activities, made with a possibility of gaining knowledge and
scientific or technological understanding, are recognized in the income statement as incurred.

Development activities involve a plan or project aiming at producing new or substantially
enhanced products. Development expenditures are capitalized only if the development costs
can be reasonably measured, if the product or process is technically and commercially viable,
if future economic benefits are probable, and if the Company has the intention and enough
resources to conclude the development and use or sell the asset. Capitalized expenditures

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include cost of materials, direct labor, manufacturing costs directly attributable to the
preparation of the asset for its proposed use and cost of loans. Other development
expenditures are recorded in the income statement as they are incurred.

Capitalized development expenditures are measured at cost, less accumulated amortization
and impairment losses, as applicable.

iii. Other intangible assets

Other intangible assets with finite useful lives are measured at cost, less accumulated
amortization and losses from impairment, as applicable.

iv. Subsequent expenditures

Subsequent expenditures are capitalized only when they increase future economic benefits
incorporated into the specific asset they relate to. All other expenditures are recognized in the
income statement as incurred.

v. Amortization

Amortization is recognized in the income statement based on the straight-line method in view
of estimated useful lives of intangible assets, from the date when they are available for use or
for generation of related economic benefits. Estimated useful lives for current period are
stated in Note 15.

Amortization methods, useful lives and residual values are reviewed at the end of each
financial year and are adjusted whenever it is adequate as change of accounting estimates.

h) Impairment

i. Financial assets (including receivables)

A financial asset not measured at fair value through profit and loss is evaluated at each
reporting date to assess if there is objective evidence of loss in its recoverable value. An
asset has loss in its recoverable value if an objective evidence indicates that a loss event
occurred after the initial recognition of the asset, and that such loss event has a negative
effect on future projected cash flows, which can be reasonably estimated.

The objective evidence that the financial assets have lost value might include default or late
payment by the debtor, restructuring the amount due to the Company under conditions the
Company usually would not consider in other transactions, indications that the debtor or
issuer will face bankruptcy, or the disappearance of an active market for a security.
Additionally, for an equity instrument, a significant or long decrease in its fair value below
its cost is an objective evidence of impairment.

Financial assets measured at amortized cost

The Company considers evidences of impairment of assets measured at amortized cost
either individually as collectively. All individually significant assets are assessed for
impairment. All individually significant receivables identified as not suffering individual

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impairment are then collectively assessed regarding any other impairment not yet
identified. Receivables that are not individually important are collectively assessed for
impairment, by jointly grouping securities with similar risk characteristics.

When collectively assessing impairment, the Company uses historical trends of probability
of default, recovery term and incurred loss amounts, adjusted to reflect the Managements
judgment regarding premises, as current economic and credit conditions may be such that
actual losses will be probably higher or lower than those suggested by historical trends.

An impairment related to a financial asset measured at amortized cost is calculated as the
difference between book value and present value of estimated future discounted cash flows
at the original effective interest rate of the asset. Losses are recognized in the income
statement and reflected in an account of allowance for receivables. Interest on impaired
assets remains being recognized. When a subsequent event indicates reversion of the
impairment, a decrease on impairment is reversed and recorded in the income statement.

Management has not identified any evidence that justifies the need to reduce the financial
assets to their recoverable value as of December 31
st
, 2011 and 2010, except for the
allowance for doubtful accounts and adjustment to the present value of receivables.

ii. Non-financial assets

The book values of the Companys non-financial assets, rather than inventories and
deferred income tax and social contribution are reviewed every reporting date to check for
impairment. If impairment occurs, then the assets recoverable value is estimated. In case
of intangible assets with indefinite useful life, the recoverable value is estimated every
year.

The impairment is recognized if the book value of an asset or cash generating unit (CGU)
exceeds its recoverable value.

The recoverable value of an asset or CGU is the highest amount between the value in use
and fair value less selling expenses. When evaluating the value in use, estimated future
cash flows are discounted at their present values through discount rate before taxes to
reflect markets current conditions as to recovery period of capital and specific risks of
asset or CGU. In order to test for impairment, assets that cannot be individually tested are
grouped to the smallest group of assets that generate continued use cash inflow which are
mostly independent from cash flows of other assets or groups of assets (cash generating
unit or CGU).

Impairment losses are recognized in the income statement. Impairment losses are only
reversed when the assets book value does not exceed the book value calculated, net of
depreciation or amortization, in case loss of value has not been recognized.

i) Benefits to employees

i. Defined contribution plans

A defined contribution plan is a post-retirement benefit plan under which an entity pays
fixed contributions to a separate entity (Pension Fund) and shall not have any legal or

19fmarf2012 +8
constructive obligation to pay for additional amounts. Liabilities for contributions to
defined contribution pension plans are recorded as expenses with benefits to employees in
the income statement in the periods during which services are rendered by employees.
Contributions previously paid are recognized as assets under the condition that there is a
cash reimbursement or a reduction in future payments is available.

ii. Defined benefit plans

The net liability of the Company regarding defined benefit pension plans is individually
calculated for each plan, by estimating the value of the future benefit earned by the
employees in return of services rendered in current and previous periods; the benefit is
discounted to its present value. Any unrecognized past service costs and the fair values of
any plan assets are deduced. The discount rate is the gains presented in the reporting date of
the financial statements for first line securities which due dates are close to the conditions
of the liabilities of the Company and that are denominated in the same currency in which
the benefits are expected to be paid.

The calculation is made annually by a qualified actuary using the projected unit credit
method. When the calculation results in a benefit for the Company, the asset to be
recognized is limited to the total of any unrecognized past service costs and the present
value of economic benefits available as future reimbursements of the plan or reduction in
future contributions to the plan. To calculate the present value of the economic benefits,
any minimum cost demands applicable to any plan in the Company are considered. An
economic benefit is available to the Company if it is realizable throughout the life of the
plan, or in the settlement of the liabilities of the plan.

Sponsor costs of the pension plan and occasional plan deficits are recognized in the income
statement by accrual method, in conformity with CVM Resolution no. 600/09, based on the
actuarial calculation prepared by independent actuary.

Actuarial gains and losses arising from adjustments and changes in actuarial premises of
pension and retirement benefit plans are recorded in the income statement.

iii. Short term benefit to employees

Short term benefit liabilities to employees are measured in undiscounted basis and are
incurred as expenses as the related service is rendered.

The liability is recognized at the amount expected to be paid under the cash bonus or short-
term profit sharing plans if the Company has a legal or constructive obligation to pay this
amount due to past services rendered by the employee and the liability can be reasonably
estimated.

iv. Benefits of termination of employment relationship

The termination of employment relationship benefits are recognized as expenses when the
Company is proven to be committed, with no realistic possibility of change, with a detailed
formal plan to terminate the employment contract before normal retirement or to provide
benefits of termination of employment relationship due to an offer made to encourage
voluntary redundancy. The benefits for termination of employment relationship for

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voluntary redundancy are recognized as expenses when the Company has made a voluntary
redundancy offer, it is probable that the offer will be accepted, and the number of
employees adhering to the program can be reasonably estimated.

v. Share-based payment transactions

The fair value of benefits of share-based payment on the granting date is recognized as
personnel expenses, with a corresponding increase in shareholders equity, for the period
when the employees unconditionally acquire the right to these benefits. The amount
recognized as an expense is adjusted to reflect the number of shares to which there is an
expectation that the service conditions and non-market acquisition conditions will be met,
in such way that the amount eventually recognized as an expense is based on the number of
shares that really meet the service conditions and non-market acquisition conditions on the
date when the rights to payment of these benefits are acquired (vesting date). For benefits
of share-based payment with non-acquired condition (non-vesting), the fair value on the
granting date of the share-based payment is measured to reflect such conditions and there
are no changes for differences between expected and actual benefits.

The fair value of the amount payable to employees related to rights over share valuations,
payable in cash, is recognized as an expense with corresponding increase in liabilities, for
the period when employees unconditionally acquire the right to payment. The liability is
measured again on each reporting date of the financial statements and at the settlement
date. Any changes in the fair value of the liability are recognized as personnel expenses in
the income statement.

j) Provisions

A provision is recognized when the Company has a constructive or legal liability that can be
reliably estimated as the result of a past event, and it is probable that an economic resource is
required to settle the liability. Provisions are recorded based on the best estimates of risk involved
and expected future cash flows. A provision for contingencies is recorded by evaluating and
quantifying lawsuits, whose probability of loss is deemed as probable, in the opinion of the
Management and its legal counsels.

k) Revenue recognition

Revenues are measured at fair value of the receivable or received counterpart, less taxes and
discounts inherent to revenues.

i. Electricity sales revenues

These are recognized when there is conclusive evidence that most significant risks and
benefits inherent to the assets ownership were transferred to the buyer, is probable that the
economic benefit associated with transactions will flow to the Company and the amount of
revenues can be reasonably measured. Traded electricity is monthly invoiced based on the
electricity supply, according to amounts disclosed by the Electric Energy Trade Chamber
(CCEE).

19fmarf2012 50

ii. Service Revenues

Revenues from services rendered are recognized in the income statement based on the stage
of completion of services on the reporting date of the financial statements. The stage of
completion is evaluated by referencing research of works performed.

iii. Construction Revenues

Contractual revenues comprise the initial value agreed upon in the agreement plus variations
deriving from additional requests, complaints and payments of contractual incentives,
subject to the condition that probably these will result in revenues and that can be reliably
measured. As soon as a construction agreement can be reasonably estimated, the
agreements revenue is recognized in the income statement to the extent of the agreements
completion phase. Contractual expenses are recognized when incurred, unless they generate
an asset related to the forward agreements activity.

The completion phase is evaluated by referencing works conducted. When results of a
construction agreement cannot be reliably measured, the agreements revenue is recognized
until the limit of costs recognized subject to the condition that costs incurred can be
recovered. Agreements losses are immediately recognized in the income statement.

Revenue related to construction services and improvement of concession agreements is
recognized based on the completion phase of work executed, compatible with the
Companys accounting policies for recognition of construction agreements revenues.
Operation or service revenues are recognized in the period services are provided by the
Company. When the Company provides more than one service in the concession agreement,
the consideration received is allocated by reference to the fair value of services delivered
when values are separately identifiable.

For revenues and costs related to construction services or improvement of infrastructure
used in electricity distribution services, the construction margin adopted is established as
being equal to zero, considering that: (i) the main activity of the subsidiary is electricity
distribution; (ii) every construction revenue is related to the construction of infrastructure to
reach its main activity; and (iii) the Company outsources the construction of infrastructure
with non-related parties. The totality of additions to intangible assets in process is monthly
recorded in the income statement, as construction cost.

l) Financial revenues and expenses

Financial revenues comprise interest income over funds invested, variations in the fair value of
financial assets measured at fair value through profit and loss. Interest income is recognized in the
income statement, through the effective interest rate method.

Financial expenses comprise interest expenses over loans, present value discount adjustments,
variations in fair value of financial assets measured at fair value through profit and loss. Borrowing
costs which are not directly attributable to acquisition, construction or production of a qualifying
asset are measured at profit and loss through the effective interest rate method.

19fmarf2012 51
Exchange gains and losses are reported on a net basis.

m) Income tax and social contribution

Current and deferred income tax and social contribution of the year are calculated based on
15% rates, plus 10% surcharge over the taxable income exceeding R$240 for income tax
and 9% over the taxable income for social contribution on net income and consider social
contribution tax loss carryforwards, restricted to 30% of taxable income.

Income tax and social contribution expenses comprise current and deferred income taxes.
Current and deferred taxes are recognized in the income statement unless these are related
to items directly recognized in shareholders equity.

Current tax is the expected payable or recoverable tax on the taxable profit or loss of the
year, at tax rates decreed or substantially decreed on the reporting date of the financial
statements and any adjustments to payable taxes related to previous years.

Deferred tax is recognized regarding temporary differences between fair value of assets and
liabilities for accounting purposes and the corresponding values for taxation purposes.

Deferred tax is measured by rates to be applied to temporary differences when they reverse,
based on the laws that have been enacted or substantially enacted until the reporting date of
the financial statements.

When calculating current and deferred income tax, the Company takes into account the
impact of uncertainties related to tax positions assumed and if additional payment of
income tax and interests has been made. The Company believes that the provision for
income tax under liabilities is appropriate in relation to all outstanding tax periods based on
its assessment of several factors, including tax laws interpretations and past experience.
This evaluation is based on estimates and assumptions that may involve a series of
judgments on future events. New information may be available, which would lead the
Company to change its judgment as to the adequacy of current provision; these changes
will impact income tax expense in the year they occur.

Deferred tax assets and liabilities are offset if there is a legal right to offset current tax
assets and liabilities, and they relate to income taxes charged by the same tax authority on
the same entity subject to taxation.

A deferred income tax and social contribution asset is recognized by tax losses, tax credits
and deductible temporary differences, not used when it is probable that future profits
subject to taxation will be available and against which they shall be used.

Deferred income tax and social contribution assets are reviewed on each closing date and
are reduced as their realization is no longer probable.

As provided for by Law No. 11,941/09, the Company uses the Transition Tax Regime
(RTT) to calculate taxable income, so that the changes in the criteria of recognition of
revenues, costs and expenses comprised in the calculation of the net income for the year do
not have material effects on the calculation of the taxable income of the entity subject to

19fmarf2012 52
RTT, and for taxation purposes, the accounting methods and criteria in force on December
31
st
, 2007 shall be considered.

n) Segment information

An operating segment is a component of the Company that develops business activities in
which it can obtain revenues and incur in expenses, including revenues and expenses
related to transactions with other components of the Company. All results from operating
segments are frequently reviewed by the Management, in order to make decisions regarding
the resources to be allocated to the segment and to assess their performance, and for this
purpose individual financial information is available.

The segment results reported to the Management include items directly attributable to the
segment, as well as those that may be allocated reasonably.

o) Foreign currency

Transactions in foreign currency are converted to the functional currency of the Company
at the exchange rates on the transaction dates. Monetary assets and liabilities denominated
and calculated in foreign currencies are converted to the functional currency at the
exchange rate of the reporting date. Gains and losses resulting from restatement of these
assets and liabilities between the exchange rate in force on the transition date or at the year-
beginning and year-end dates are recognized as financial revenues or expenses in the
income statement.

19fmarf2012 53

p) Present value adjustment

The items subject to discount at present value are:

i. Consumer, concessionaires, permissionaires and clients

The Company calculated the present value for balances with payment terms over 180 days.
The discount rate used by Management for the discount at present value for these items is
12.0% and is based on a risk-free rate of 5.8% plus a credit risk of 5.9%. Interest rates
accumulated in a sales transaction are determined upon initial recording of transaction and
are not subsequently adjusted.

ii. Onerous granting of concessions

The Company calculated the present value for balances with onerous grants of concessions
payable to the granting authority. The discount rate used by Management for discount at
present value for these items is 13.1% and is based on a risk-free rate of 5.8% plus a credit
risk of 6.9%. Interest rates accumulated in a sales transaction are determined upon initial
recording of transaction and are not subsequently adjusted.

q) Added value statement

The Company prepared individual and consolidated added value statements (DVA) in the terms of
the technical pronouncement CPC 09 Added Value Statement, which are presented as an integral
part of the financial statements under BR GAAP applicable to publicly-held companies, whilst they
represent, for IFRS, additional financial information.

r) Rules and interpretations not yet adopted

Several IFRS rules, amendments to rules and interpretations issued by IASB are not yet in force in
the year ended December 31
st
, 2011, such as:

New Standards, amendments to Standards and interpretations are effective for fiscal years starting
as of 2013 have not been applied to the preparation of these financial statements. None of these new
Standards should have an adverse effect on the Companys financial statements, except for IFRS 9
Financial Instruments, which can alter the classification and measurement of financial assets
maintained by the Company, and IFRS 11, which may impact the entities currently proportionally
consolidated by the Company. The Company does not expect to early adopt this standard and the
impact of its adoption has not been measured yet.

CPC did not issued yet pronouncements equivalent to the IFRSs mentioned above, but there are
expectations that it does before the required date to become in force. Anticipated adoption of IFRSs
pronouncements is conditioned to previous approval in normative act by CVM Brazilian
Securities and Exchange Commission.

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5. CASH AND CASH EQUIVALENTS

12/31/2011 12/31/2010 12/31/2011 12/31/2010
Cash 152 386 81,138 36,028
Financial investments of immediate liquidity
Bank deposit certificate (CDB) 54,905 37,909 691,410 478,081
Total 55,057 38,295 772,548 514,109

Financial investments of immediate liquidity are represented by transactions purchased from
organizations trading in the domestic financial market, at regular market terms and rates. These
investments are highly liquid, have a daily repurchase commitment by the counterparty financial
institution (the repurchase rate is previously agreed upon by the parties), involve low credit exposures,
and yield according to the variation of the interbank deposit rate (CDI), without relevant loss of
income in case of early redemption.

The Company's exposure to interest rate risks and a sensitivity analysis of financial assets and
liabilities are reported in Note 34.

6. MARKETABLE SECURITIES

These papers involve bank deposit certificates (CDB) in the amount of R$8,171 (R$11,122 on
December 31
st
, 2010) in the consolidated financial statements, forming the underlying assets of certain
surety bonds pledged in power auctions, and also other proceeds from the sale of assets that were held
for reinvestment in the electric grid system or investments to mature within three months or longer
with significant loss of income in case of early redemption.

19fmarf2012 55

7. CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS)

CURRENT 12/31/2011 12/31/2010
Billed sales 1,756,814 1,912,492
Unbilled sales 295,153 277,339
Debt payment by installments 171,227 154,896
Other receivables 238 489
2,223,432 2,345,216
Sales within the scope of CCEE 7,083 5,546
Supply and charges related to the use of electric network 48,510 46,444
55,593 51,990
(-) Allowance for doubtful accounts (895,405) (1,058,502)
TOTAL CURRENT 1,383,620 1,338,704
NON-CURRENT
Debt payment by installments 267,530 276,092
Other receivables 31,008 20,169
TOTAL NON-CURRENT 298,538 296,261
Consolidated

The balances of debt repayment facilities were adjusted to their present value, as applicable. The
present value is determined for each relevant consumer debt renegotiation (debt repayment facilities)
based on such interest rate as will reflect the term and risk associated with each individual transaction,
on average 1% per month.

The balance includes the present value of repayment agreements with installment acceleration options
(these options, once exercised, give customers a discount on any accelerated installment). The client
exercised options which generated a financial expense amounting to R$22,437 in 2011 (R$16,216 in
2010). It is estimated that an approximate amount of R$31,000 in options will be exercised in 2012.

An allowance for doubtful accounts was set up based on certain premises and in an amount deemed
sufficient by Management to meet any asset realization losses.

In 2011, bad debts were written-off in the amount of R$427,990 (R$14,133 in 2010), mainly related to
bills overdue for a long time, and within tax deductibility criteria. The write offs were realized against
allowance for doubtful accounts already recorded, thus, not impacting the net income for the year.

Outstanding balances and receivables in connection with invoiced electric power sales and also debt
repayment programs are summarized as follows:

Maturing Overdue up to Overdue over
Billed sales and installment payment balance 90 days 90 days 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Residential 275,925 167,476 633,331 1,076,732 1,208,691 (615,747) (787,040)
Industrial 24,449 10,928 155,605 190,982 202,264 (38,768) (39,998)
Commercial 174,321 36,764 292,651 503,736 485,408 (236,649) (223,865)
Rural 671 300 697 1,668 1,568 (589) (499)
Public sector 45,715 11,756 105,589 163,060 172,723 (3,642) (4,920)
Public lighting 13,675 966 24,072 38,713 39,666 - (1,635)
Public utility 183,394 28,956 8,330 220,680 233,160 (10) (546)
Total - current and non-current 718,150 257,146 1,220,275 2,195,571 2,343,480 (895,405) (1,058,502)
Allowance for doubtful accounts
Matured balances TOTAL (PCLD)

The Companys exposure to credit risks related to consumers, concessionaires, permissionaires and
clients is reported in Note 34.

19fmarf2012 56

8. TAXES AND CONTRIBUTIONS

CURRENT 12/31/2011 12/31/2010
PIS/COFINS payable 8,843 -
ICMS payable 12 13
Other 56 17
Total 8,911 30
Liabilities
Parent Company

CURRENT 12/31/2011 12/31/2010 12/31/2011 12/31/2010
ICMS recoverable 107,634 80,080 - -
ICMS payable - - 13,669 23,833
Installment Payments - Law 11,941/09 - - 16,924 21,633
PIS/COFINS recoverable 33,296 17,935 - -
PIS/COFINS payable - - 63,368 61,234
Other 18,032 17,237 14,799 12,538
Total 158,962 115,252 108,760 119,238
NON-CURRENT
Installment Payment - Law 11,941/09 - - 200,263 177,699
ICMS recoverable 95,622 57,908 - -
Total 95,622 57,908 200,263 177,699
Liabilities
Consolidated
Assets

In relation to the Tax Installments - Law 11,941/09, the Company has been making monthly payments
of the installments as provided by the consolidation of the Federal Revenue Service on June 27, 2011,
in the annual amount of R$16,632. The installment balance is restated by SELIC rate and the
restatement amount recorded in the income statement is R$20,844 (R$16,908 in 2010). Moreover, the
Company included two new debts of New Refis (tax installment payment program) in 2011, as granted
by Federal Revenue Service, which resulted in an addition of R$13,643 in its installment payment.

19fmarf2012 57

9. INCOME TAX AND SOCIAL CONTRIBUTION

CURRENT 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Tax credits IRPJ and CSLL 3,380 1,080 - -
IRRF (Withholding Income Tax) payable - - 2 1
Prepaid IRPJ/CSLL 15 - - -
Total 3,395 1,080 2 1
Parent Company
Assets Liabilities

CURRENT 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Tax credits IRPJ and CSLL 13,606 6,838 - -
IRRF (Withholding Income Tax) payable - - 620 523
Prepaid IRPJ/CSLL 98,043 156,795 - -
Provision for IRPJ/CSLL - - 60,354 230,408
Total 111,649 163,633 60,974 230,931
Assets Liabilities
Consolidated

The balances of advanced Income Tax and Social Contribution (IRPJ/CSLL) basically refer to the
advances in 2011 which will be offset with payable federal taxes recorded under Taxes and
Contributions.

10. DEFERRED TAXES

ASSETS
Basis of
calculation
Deferred tax
Basis of
calculation
Deferred tax
Income Tax
Tax losses 894,750 223,687 844,992 211,249
Temporary differences 1,483,008 370,752 1,786,984 446,746
Social Contribution
Tax loss carryforward 928,383 83,554 893,800 80,441
Temporary differences 1,483,008 133,471 1,786,984 160,829
Total non-current assets 811,464 899,265
Consolidated
12/31/2011 12/31/2010

LIABILITIES
Basis of
calculation
Deferred tax
Basis of
calculation
Deferred tax
Income Tax
Temporary differences 715,692 178,923 811,043 202,761
Social Contribution
Temporary differences 715,692 64,412 811,043 72,994
Total non-current liabilities 243,335 275,755
12/31/2011 12/31/2010
Consolidated

19fmarf2012 58

In order to substantiate its deferred tax assets, the Company updated the feasibility analysis approved
by the Board of Directors and examined by the Fiscal Council considering realizations as of December
2011, which analysis is based on estimations prepared in 2010. The feasibility analysis indicates the
balance will be recovered within six years. Below, a list of deferred tax asset estimated amounts per
relevant year of realization.

2012 183,134
2013 190,472
2014 119,153
2015 191,071
2016 59,303
2017 68,331
Total - Light SA and subsidiaries 811,464

The interim difference taxable basis breakdown is as follows:

12/31/2011 12/31/2010
ASSETS IR / CSLL IR / CSLL
Allowance for doubtful accounts 874,785 1,051,462
Provision for profit sharing 18,749 19,270
Provision for labor contingencies 148,641 169,886
Provision for tax contingencies 185,981 167,657
Provision for civil contingencies 186,731 196,095
Impacts resulting from the adoption of the new CPCs 53,829 34,754
Other provisions 14,292 147,860
TOTAL - ASSETS 1,483,008 1,786,984
LIABILITIES
Attributed cost - Light Energia 715,692 748,637
Other - 62,406
TOTAL - LIABILITIES 715,692 811,043
Consolidated

Below, the deferred income tax breakdown for the periods:

CONSOLIDATED
ASSETS Balance on Recognized Compensation Balance on Recognized Compensation Balance on
January 1, 2010 in income statement
NewRefis (Law
11,941/09)
December 31, 2010 in income statement
NewRefis (Law
11,941/09)
December 31, 2011
Allowance for doubtful accounts 274,865 82,632 - 357,497 (60,070) - 297,427
Provision for profit sharing 8,916 (2,364) - 6,552 (177) - 6,375
Provision for labor contingencies 55,643 1,360 - 57,003 6,485 - 63,488
Provision for tax contingencies 61,027 5,645 - 66,672 (16,134) - 50,538
Provision for civil contingencies 87,290 (29,529) - 57,761 5,473 - 63,234
Impacts resulting fromthe adoption of the new CPCs 19,327 (7,511) - 11,816 (1,932) - 9,884
Other 42,506 7,768 - 50,274 (36,998) - 13,276
Tax loss 346,364 (168,729) 33,613 211,249 16,892 (4,453) 223,688
Tax loss carryforward 117,329 (55,388) 18,501 80,441 6,081 (2,968) 83,554
1,013,267 (166,116) 52,114 899,265 (80,380) (7,421) 811,464
LIABILITIES
Light Energia property, plant and equipment revaluation (267,240) 12,703 - (254,537) 11,202 - (243,335)
Others - Light SESA - IFRS - (21,218) - (21,218) 21,218 - -
(267,240) (8,515) - (275,755) 32,420 - (243,335)

19fmarf2012 59

Reconciliation of effective and nominal rates in the provision for income tax and social contribution:

12/31/2011 12/31/2010
Earnings before income and social contribution taxes (LAIR) 415,538 922,619
Combined rate of income and social contribution taxes 34% 34%
Income and social contribution taxes to the tax rates under current regulation (141,283) (313,690)
Effect of income and social contribution taxes over permanent additions and exclusions 5,691 (14,905)
Effect of income and social contribuion taxes over shareholders quity 29,496 -
Effect of lawsuit discontinuance - Law 11.941/09 - LIR and LOI - (25,341)
Unrecognized deferred tax credits CVM n 371/02 - Light S.A. (598) (1,541)
Tax deficiency notice - Light Energia 23 -
Tax incentives 1,681 7,887
Others 99 121
Income and social contribution taxes in the income statement (104,891) (347,469)
Current IRPJ and CSLL in the income statement (56,891) (103,482)
Deferred IRPJ and CSLL in the income statement (48,000) (243,987)
(104,891) (347,469)
Consolidated

11. CONCESSIONS FINANCIAL ASSETS

Owing to its utility nature, distribution of electric power is governed by certain utility concession
agreements and any subsequent amendments thereto, entered into by the federal government (Granting
Authority - Grantor) and the subsidiary Light SESA (Concessionaire - Operator). These agreements
generally contain provisions governing matters such as follows:

Which services the Operator must provide and to whom (i.e. consumer classes) such services
must be provided.

These concession agreements contain performance standards applicable to utility services,
usually addressing quality maintenance and improvement in connection with any services
provided to the public. Additionally, the Operator is required, upon expiration of the
concession, to return infrastructure assets under same operating conditions as they were handed
over when the agreement was executed. In order to satisfy and meet these obligations,
investments are made on an ongoing basis over the term of the concession. Therefore, some
assets associated with the concession contract may be replaced a number of times before the
concession expires.

Once the concession expires, infrastructure assets return to the granting authority upon
payment of a certain compensation; and

Concession prices are fixed through a rate methodology set forth in each concession agreement
that is based on a parametric formula (Portions A and B), and includes a review mechanism to
ensure that the tariff will be sufficient to cover any costs, repay investments made and provide
return on the capital invested.

Based on the features of the electric power distribution agreement of the subsidiary, management is of
the opinion that the requirements for application of Accounting Interpretation ICPC 01 - Concession
Contracts (IFRIC 12 - Service Concession Arrangements), which interpretation provides guidelines
addressing how to account for public to private service concession arrangement, have been
successfully met in order to reflect the electric power distribution business, comprising:

19fmarf2012 60

a) An estimated portion of any investments made and not repaid or amortized before the
concession expires, net of special obligations classified as financial assets due to their nature as
an unqualified right to receive cash or any other financial asset directly from the granting
authority.

b) A portion remaining after the financial asset was determined, net of any special obligations
classified as intangible assets because its recovery is contingent upon the utility service being
used.

The infrastructure handed over or built in connection with the power distribution business, originally
represented by property, plant and equipment and other intangible asset items of the subsidiary, is
recovered through two distinct cash flows, as follows:

a) a portion of the infrastructure is recovered through selling power distribution services to
consumers (monthly billing of power consumed/sold) during the term of the concession; and

b) another portion is recovered by way of the compensation payable for reversible assets upon
expiration of the concession, which compensation will be paid directly by the Granting
Authority or any of its agents.

Below, a summary of transactions related to the balances of reversible assets (concession assets) in
2011 and 2010:

Balance as of December 31, 2009 354,784
Additions 114,375
Write-offs (129)
Additions 187,822
Write-offs (379)

19fmarf2012 61

12. OTHER RECEIVABLES

CURRENT 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Advances to suppliers and employees 156 18 32,915 38,065
Account receivable from the sale of property - - 12,130 12,130
Public lighting fee - - 54,999 48,399
Expenditures to refund - - 23,484 8,111
Subsidy to low-income segment - - 12,654 19,584
Loan agreement with Lightger 11,606 21,875 - -
Other 2,001 1,967 37,368 26,684
Total 13,763 23,860 173,550 152,973
NON-CURRENT
Assets and rights for disposal - - 7,213 7,226
Other - - 766 639
Total - - 7,979 7,865

13. INVESTMENTS

Accounted for under the equity method: 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Light SESA 2,314,175 2,442,433 - -
Light Energia 670,064 815,593 - -
Light Esco 55,072 37,787 - -
Lightger (a) 40,678 36,767 - -
LightCom 5,821 2,733 - -
Itaocara Energia (a) 23,472 16,067 - -
Axxiom 4,427 2,304 - -
Light Solues 1,520 50 - -
Amaznia Energia (a) 37,545 - - -
E-Power (a) 140 - - -
Subtotal 3,152,914 3,353,734 - -
Goodwill from future profitability 2,088 2,034 - -
Other permanent investments - 1,020 54,086 17,586
Subtotal 2,088 3,054 54,086 17,586
TOTAL INVESTIMENTS 3,155,002 3,356,788 54,086 17,586
(a) Pre-operating companies

19fmarf2012 62

INFORMATION ON SUBSIDIARY COMPANIES AND JOINT VENTURES CONTROL

Mandatory Dividends and
Ownership Paid-up Shareholders' dividends and interest on equity Income / loss Total
interest (%) capital equity interest on equity paid for the period assets
Light SESA 100.0 2,082,365 2,314,175 (84,453) (259,534) 215,729 8,699,821
Light Energia 100.0 77,422 670,064 (5,574) (230,704) 90,750 2,098,802
Light Esco 100.0 17,584 55,072 (2,269) - 9,554 83,972
LightCom 100.0 1,000 5,821 (962) - 4,050 25,399
Light Solues 100.0 1,350 1,520 - - 223 1,752
Instituto Light 100.0 300 - - - - 2
Itaocara Energia 100.0 29,562 23,472 - - 136 86,525
Lightger 51.0 40,408 40,678 - - (754) 104,462
Axxiom 51.0 4,692 4,427 - - 1,103 6,526
Amaznia Energia 25.5 37,740 37,545 - - (195) 37,545
E-Power 20.0 376 140 - - (196) 317
12/31/2011

Ownership Paid-up Shareholders' Proposed Dividends Income / loss Total
interest (%) capital equity dividends paid for the period assets
Light SESA 100.0 2,082,365 2,442,433 (23,346) (89,546) 475,316 8,037,865
Light Energia 100.0 77,422 815,593 (21,066) - 88,697 1,538,389
Light Esco 100.0 7,584 37,787 (3,102) - 13,064 68,161
LightCom 100.0 1,000 2,733 (540) - 2,273 18,831
Light Solues (formerly Lighthidro) 100.0 50 50 - - - 67
Instituto Light 100.0 300 - - - - 2
Itaocara Energia 100.0 22,294 16,067 - - (47) 145,003
Lightger 51.0 35,473 36,767 - - 13 48,819
Axxiom 51.0 3,672 2,304 - - 78 4,216
12/31/2010

CHANGES IN SUBSIDIARIES AND JOINT VENTURES

Mandatory Dividends and
Capital dividends and interest on equity Equity
increase interest on equity paid Others pick-up
Light SESA 2,442,433 - (84,453) (259,534) - 215,729 2,314,175
Light Energia 815,593 - (5,574) (230,704) (1) 90,750 670,064
Light Esco 37,787 10,000 (2,269) - - 9,554 55,072
LightCom 2,733 - (962) - - 4,050 5,821
Lightger 36,767 4,665 - - - (754) 40,678
Light Solues 50 1,300 (53) - - 223 1,520
Instituto Light - - - - - - -
Itaocara Energia 16,067 7,268 - - 1 136 23,472
Axxiom 2,304 1,020 - - - 1,103 4,427
Amaznia Energia - 37,740 - (195) 37,545
E-Power - 234 - - - (94) 140
12/31/2010 12/31/2011

Capital Dividends Dividends Equity
increase Divestment paid proposed Others pick-up
Light SESA 2,699,254 - - (708,791) (23,346) - 475,316 2,442,433
Light Energia 747,962 - - - (21,066) - 88,697 815,593
Light Esco 27,825 - - - (3,102) - 13,064 37,787
LightCom - 1,000 - - (540) - 2,273 2,733
Light Ger 25,772 37,892 (28,851) - - 1,941 13 36,767
Light Solues (formerly Lighthidro) 50 - - - - - - 50
Itaocara Energia 11,115 5,000 - - - (1) (47) 16,067
Axxiom - 3,672 - - - (1,446) 78 2,304
12/31/2009 12/31/2010

19fmarf2012 63

Below, full balances of joint ventures in 2011, whose consolidation was proportional:

AXXIOM E-POWER AMAZNIA LIGHTGER
ASSETS
Current 8,329 368 - 35,945
Non-current 4,467 862 147,235 168,882
Total assets 12,796 1,230 147,235 204,827
LIABILITIES
Current 4,116 532 - 27,029
Non-current - - - 98,037
Shareholders' equity 8,680 698 147,235 79,761
Total liabilities 12,796 1,230 147,235 204,827
INCOME STATEMENT
Net revenue from sales 18,696 - - -
Cost of sales - - - -
Gross profit 18,696 - - -
General and administrative expenses (15,757) (717) - (2,216)
Net financial income 247 (42) (766) 738
Income before income tax and social contribution 3,186 (759) (766) (1,478)
Income tax and social contribution (1,024) - - -
Net profit for the year 2,162 (759) (766) (1,478)

14. PROPERTY, PLANT AND EQUIPMENT

12/31/2010
Historical cost
Accumulated
depreciation Net value Net value
Generation 2,743,542 (1,495,772) 1,247,770 1,225,621
Transmission 57,601 (42,172) 15,429 16,097
Distribution 44,917 (35,004) 9,913 10,572
Administration 299,437 (179,960) 119,477 73,380
Sales 10,746 (8,015) 2,731 2,266
In service 3,156,243 (1,760,923) 1,395,320 1,327,936
Generation 496,135 - 496,135 185,964
Administration 94,378 - 94,378 114,993
In progress 590,513 - 590,513 300,957
TOTAL OF PROPERTY, PLANT AND
EQUIPMENT 3,746,756 (1,760,923) 1,985,833 1,628,893
12/31/2011
Consolidated

19fmarf2012 6+

The statement below summarizes the changes in property, plant and equipment:

PROPERTY, PLANT AND EQUIPMENT IN SERVICE
Cost
Land 105,026 154 (50) - 105,130
Reservoir, dams and water mains 1,250,703 28,220 - - 1,278,923
Buildings, works and improvements 255,954 14,577 (287) - 270,244
Machinery and equipment 1,245,946 94,650 (3,492) - 1,337,104
Vehicles 32,491 9,278 (11,920) - 29,849
Fixtures and furnishings 127,073 7,939 (19) - 134,993
Total Property, Plant and Equipment in Service - Cost 3,017,193 154,818 (15,768) - 3,156,243
(-) Depreciation
Reservoir, dams and water mains (756,181) (23,354) - - (779,535)
Buildings, works and improvements (149,576) (7,865) 233 - (157,208)
Machinery and equipment (654,084) (37,787) 1,384 - (690,487)
Vehicles (27,898) (2,781) 7,132 - (23,547)
Fixtures and furnishings (101,518) (8,635) 7 - (110,146)
Total Property, Plant and Equipment in Service - Depreciation (1,689,257) (80,422) 8,756 - (1,760,923)
PROPERTY, PLANT AND EQUIPMENT IN PROGRESS
Land - 2,053 - (536) 1,517
Reservoir, dams and water mains 77,614 77,171 - (28,412) 126,373
Buildings, works and improvements 44,511 45,083 - (609) 88,985
Machinery and equipment 118,790 197,856 - (62,361) 254,285
Vehicles 10,055 169 - (9,326) 898
Fixtures and furnishings 13,589 76,140 - - 89,729
Studies and frojects 36,398 1,985 - (9,657) 28,726
Total Property, Plant and Equipment in Progress 300,957 400,457 - (110,901) 590,513
TOTAL PROPERTY, PLANT AND EQUIPMENT 1,628,893 474,853 (7,012) (110,901) 1,985,833
Balance as of
12/31/2011
Balance as of
12/31/2010
Additions * Write offs
Inter-account
transfers
Consolidated

* It includes the amount of R$243,814, referring to the acquisition of interest in Renova Energia S.A.
as described in Note 02.
PROPERTY, PLANT AND EQUIPMENT IN SERVICE
Cost
Land 105,803 - (777) - 105,026
Reservoir, dams and water mains 1,247,913 4,121 (1,331) - 1,250,703
Buildings, works and improvements 271,021 222 (15,289) - 255,954
Machinery and equipment 1,240,560 6,789 (1,403) - 1,245,946
Vehicles 32,497 65 (71) - 32,491
Fixtures and furnishings 127,130 894 (951) - 127,073
Total Property, Plant and Equipment in Service - Cost 3,024,924 12,091 (19,822) - 3,017,193
(-) Depreciation
Reservoir, dams and water mains (734,988) (22,524) 1,331 - (756,181)
Buildings, works and improvements (147,937) (7,853) 6,214 - (149,576)
Machinery and equipment (616,922) (37,738) 576 - (654,084)
Vehicles (24,857) (3,114) 73 - (27,898)
Fixtures and furnishings (92,953) (9,485) 920 - (101,518)
Total Property, Plant and Equipment in Service - Depreciation (1,617,657) (80,714) 9,114 - (1,689,257)
PROPERTY, PLANT AND EQUIPMENT IN PROGRESS
Reservoir, dams and water mains 43,416 34,198 - - 77,614
Buildings, works and improvements 29,866 14,645 - - 44,511
Machinery and equipment 81,300 51,364 - (13,874) 118,790
Vehicles 7,497 2,623 - (65) 10,055
Fixtures and furnishings 14,530 2,081 - (3,022) 13,589
Studies and frojects 16,692 20,481 (775) - 36,398
Total Property, Plant and Equipment in Progress 193,301 125,392 (775) (16,961) 300,957
TOTAL PROPERTY, PLANT AND EQUIPMENT 1,600,568 56,769 (11,483) (16,961) 1,628,893
Consolidated
Balance as of
12/31/2009 Additions Write offs
Inter-account
transfers
Balance as of
12/31/2010

(i) Subsidiary Light SESA does not own any federal government-owned assets and rights in use.

(ii) Annual depreciation rates:

19fmarf2012 65
The schedule below summarizes significant depreciation rates, based on assets useful lives
estimate and in line with ANEEL Resolution No. 367, as of June 2, 2009:

Generation ( %) Sales ( % ) Administration ( % ) Transmission ( % )
Dams 2.5 Buildings 4.0 Buildings 4.0 System conductors 2.5
Circuit breaker 3.0 General equipment 10.0 General equipment 10.0 General equipment 10.0
Buildings 4.0 Vehicles 20.0 Vehicles 20.0 System structure 2.5
Water intake equipment 3.7 Recloser 4.3
Water intake structure 4.0
Generator 3.3
Engine group - generator 5.9
Reservoir, dams and water mains 2.0
Local communications system 6.7
Water turbine 2.5
Average depreciation rate Average depreciation rate Average depreciation rate Average depreciation rate
Generation 3.8 Sales 11.3 Administration 11.3 Transmission 4.8

The Company did not identify signs of impairment of its fixed assets. The concession agreements
provide that at the end of each concessions term, the granting authority will determine the amount to
be indemnified to the Company, so that the Management understands that the book value of fixed
assets not depreciated at the end of concession will be reimbursable by the granting authority.

Consortia

The Company participates in electric power generation concession consortia to which no companies
were organized on an independent legal basis in order to manage the purpose of said concession,
maintaining controls in fixed assets, according to ANEEL Order n 3.467 of September 18, 2008. The
Company, through Itaocara Energia, holds 51% interest in UHE Itaocara consortium and Cemig
Gerao e Transmisso S.A. Cemig GT holds 49.0%. The consortium aims the exploration of
Itaocara hydroelectric power plant. Assets and liabilities balances referring to the participation in the
Consortium are incorporated into the balances of Itaocara Energia.

19fmarf2012 66

15. INTANGIBLE ASSETS

12/31/2010
Historical cost
Accumulated
amortization
Net Value Net Value
Intangible
Concession right of use 6,411,030 (3,458,622) 2,952,408 2,678,328
Goodwill from future profitability 2,092 - 2,092 2,034
Other 495,302 (400,647) 94,655 82,771
In Use 6,908,424 (3,859,269) 3,049,155 2,763,133
Concession right of use 799,364 - 799,364 788,111
Other 226,749 - 226,749 62,528
In progress 1,026,113 - 1,026,113 850,639
TOTAL INTANGIBLE (a) 7,934,537 (3,859,269) 4,075,268 3,613,772
12/31/2011
Consolidated

a) Net of special obligations comprising (i) contributions made by the federal government, states,
municipalities and consumers, (ii) any unqualified donations (i.e. not subject to any consideration
to the benefit of donor), and subsidy intended as investments to be made toward concession of the
electric power distribution utility.

Intangible in progress includes inventories of project materials in the amount of R$81,390 as of
December 31
st
, 2011 (R$43,808 as of December 31
st
, 2010), as well as a provision for inventory
devaluation in the amount of R$5,749 (R$5,749 as of December 31
st
, 2010). The Company has not
identified signs of impairment of its other intangible assets.

A total amount of R$20,692 (R$9,183 in 2010) was carried over to intangible assets in 2011 by way of
interest capitalization, recorded by transfer and against financial result.

The infrastructure used by subsidiary Light SESA is associated with the distribution service, and
therefore cannot be removed, disposed of, assigned, conveyed, or encumbered as mortgage collateral
without the prior written authorization of the granting authority, which authorization, if given, is
regulated by Resolution ANEEL No. 20/99.

19fmarf2012 67

Below is a summary of changes in the intangible assets:

In Service
Concession right of use 5,897,129 710,860 (9,516) (187,443) 6,411,030
Goodwill from future profitability 2,034 58 - - 2,092
Other 450,714 44,602 (14) - 495,302
Total Intangible in Service 6,349,877 755,520 (9,530) (187,443) 6,908,424
(-) Amortization
Concession right of use (3,218,801) (246,821) 7,000 - (3,458,622)
Other (367,943) (32,704) - - (400,647)
Total Intangible in Service - Depreciation (3,586,744) (279,525) 7,000 - (3,859,269)
In Progress
Concession right of use 788,111 786,272 - (775,019) 799,364
Other 62,528 165,082 - (861) 226,749
Total Intangible in Progress 850,639 951,354 - (775,880) 1,026,113
TOTAL INTANGIBLE ASSETS 3,613,772 1,427,349 (2,530) (963,323) 4,075,268
CONSOLIDATED
Balance as of
12/31/2010
Additions * Write offs
Inter-account
transfers
Balance as of
12/31/2011

* It includes the surplus value related to the concession right referring to the acquisition of interest in
Renova Energia S.A., in the amount of R$196,712, as described in Note 02.

In Service
Concession right of use 5,691,229 259,135 (53,235) - 5,897,129
Goodwill from future profitability - 2,034 - - 2,034
Other 413,090 37,624 - - 450,714
Total Intangible in Service 6,104,319 298,793 (53,235) - 6,349,877
(-) Amortization
Concession right of use (3,023,643) (240,387) 45,229 - (3,218,801)
Other (336,184) (31,759) - - (367,943)
Total Intangible in Service - Depreciation (3,359,827) (272,146) 45,229 - (3,586,744)
In Progress
Concession right of use 605,289 579,084 - (396,262) 788,111
Other 73,199 21,578 - (32,249) 62,528
Total Intangible in Progress 678,488 600,662 - (428,511) 850,639
TOTAL INTANGIBLE ASSETS 3,422,980 627,309 (8,006) (428,511) 3,613,772
CONSOLIDATED
Balance as of
12/31/2009
Additions Write offs
Inter-account
transfers
Balance as of
12/31/2010

It is the responsibility of ANEEL in its capacity as regulatory agency to determine the estimated
economic useful lives of each piece of distribution infrastructure assets for pricing purposes, as well as
for the purpose of calculating the amount of the relevant compensation payable upon expiration of the
concession term. This estimate is revised from time to time, represents the best estimate concerning
the assets' useful lives, and is accepted in the market as appropriate for accounting and regulatory
purposes.

The Management understands that amortization of the concession's right of use must be consistent
with the return expected on each infrastructure asset, via the applicable rates. Thus, intangible assets
are amortized over the expected length of such return, limited to the term of the concession.

Below, main amortization rates, based on assets useful lives estimate and in line with ANEEL
Resolution No. 367 of June 2, 2009:

19fmarf2012 68

Items (%)
Capacitor bank 6.7
Switchboard 6.7
System conductor 5.0
Circuit breaker 3.0
Buildings 4.0
System structure 5.0
Meter 4.0
Voltage regulator 4.8
Recloser 4.3
Transformer 5.0
Software 20.0

Use of Public Asset (UPA)

Pursuant to OCPC 05, generation concession agreements understand that the right and corresponding
liability simultaneously rely on concessionaire upon the signature of the concession agreement
(authorization), the intangible asset is initially measured at cost (in the instrument of ownership). In
case of fixed granting, the cost corresponding to the amount already expensed and to be expensed shall
be recognized at present value, as per provisions of the Accounting Pronouncement CPC 12 Fair
Value Adjustment. The Company has onerous concession agreement in Itaocara consortium.

16. SUPPLIERS

CURRENT 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Sales within the scope of CCEE - - 20,066 59,626
Electric network usage charges - - 55,580 48,836
System service charges - - 2,216 2,216
Free energy refund to generation companies (a) - - 53,266 54,185
Electric power auctions - - 196,789 150,231
Itaipu binational - - 110,165 84,842
UTE Norte Fluminense - - 118,226 73,677
Supplies and services 197 280 200,850 184,808
Total 197 280 757,158 658,421

a) Free Energy Reimbursement to Power Generation Companies

ANEEL Resolution No. 387 as of December 15
th
, 2009, published January 12
th
, 2010, concluded the
process of calculating the Revenue Loss and Free Energy closing balances after the conclusion of the
Extraordinary Tariff Review - RTE, and also determined the amounts of any reimbursement operators
should pay each other, as applicable, and payments shall be made on April 9, 2011. However, said
reimbursements are suspended according to injunction filed by the Brazilian Association of Electricity
Distribution Operators (ABRADEE) on April 7
th
, 2011. The balance was ratified at R$48,985 and the
variation in the period resulting from adjustment by SELIC (overnight lending rate) variation amounts
to R$4,281.

The Companys exposure to credit risks related to suppliers is reported in Note 34.

19fmarf2012 69

17. LOANS, FINANCING AND FINANCIAL CHARGES

Financing Entity Current Non-current Current Non-current 12/31/2011 12/31/2010
TN - Par Bond - 73,005 943 - 73,948 65,686
TN - Surety - Par Bond - (54,533) - - (54,533) (38,844)
TN - Discount Bond - 50,940 165 - 51,105 45,395
TN - Surety - Discount Bond - (38,231) - - (38,231) (27,276)
TN - C. Bond 6,206 9,308 265 - 15,779 19,622
TN - Debit. Conv. 3,475 - 11 - 3,486 9,292
TN - Bib 226 226 8 - 460 612
Merril Lynch - 93,790 345 - 94,135 -
BNP - 85,191 669 - 85,860 -
FOREIGN CURRENCY - Total 9,907 219,696 2,406 - 232,009 74,487
Eletrobrs 564 1,469 - - 2,033 2,598
CCB Bradesco 75,000 375,000 11,352 - 461,352 461,340
Working capital- Santander - 80,000 3,158 - 83,158 82,646
BNDES - FINEM 82,616 144,577 992 - 228,185 311,162
BNDES - FINEM direct 29,651 128,490 581 - 158,722 155,265
BNDES - FINEM + 1 29,651 128,490 646 - 158,787 155,528
BNDES - FINEM direct PSI 12,681 85,591 193 - 98,465 105,831
BNDES - Capex 11/12 Subcred.2 - 99,819 188 - 100,007 -
BNDES - Light Ger 1,613 50,000 - - 51,613 -
BNDES - PROESCO 1st funding 119 219 1 - 339 459
BNDES - PROESCO 2nd funding 230 537 3 - 770 1,002
BNDES - PROESCO 3rd funding 109 262 1 - 372 481
BNDES - PROESCO 4th funding 457 1,447 6 - 1,910 2,051
BNDES - PROESCO 5th funding 1,083 3,431 15 - 4,529 4,778
BNDES - PROESCO 6th funding 77 437 2 - 516 -
BNDES - PROESCO 7th funding 62 312 3 - 377 -
Renova Energia - NP 38,569 - 266 - 38,835 -
Renova Energia - BNDES - 163,355 - 3,725 167,080 -
Renova Energia - Bco do Nordeste 1,261 27,505 - - 28,766 -
RGR - - 246 - 246 246
Sundry bank guarantees - - 134 - 134 209
DOMESTIC CURRENCY - Total 273,743 1,630,327 18,498 3,725 1,926,293 1,283,596
SWAP - - 787 976 1,763 5,295
Overall Total 283,650 1,850,023 21,691 4,701 2,160,065 1,363,378
Total
Consolidated
Principal Charges

19fmarf2012 70
The statement below summarizes the contractual terms and conditions applicable to our loans and
borrowings as of December 31
st
, 2011:

Principal Amortization
Date of Interest Rate Remaining
Financing Entity signature Currency p.a. Beginning Payment Installments End
TN - Par Bond 4/29/1996 US$ 6% 2024 Lump sum 1 2024
TN - Cauo - Par Bond 4/29/1996 US$ U$ Treasury 2024 Lump sum 1 2024
TN - Discount Bond 4/29/1996 US$ Libor + 13/16 2024 Lump sum 1 2024
TN - Cauo - Discount Bond 4/29/1996 US$ U$ Treasury 2024 Lump sum 1 2024
TN - C. Bond 4/29/1996 US$ 8% 2004 Half-yearly 5 2014
TN - Debit. Conv. 4/29/1996 US$ Libor + 7/8 2004 Half-yearly 1 2012
TN - Bib 4/26/1996 US$ 6% 1999 Half-yearly 4 2013
Merril Lynch 11/7/2011 US$ Libor+2.5294% 2014 Half-yearly 6 2016
BNP 10/17/2011 EURO 4% 2014 Lump sum 1 2014
Eletrobrs sundry UFIR 5% 1988 Monthly and Quarterly 48 2015
CCB Bradesco 10/18/2007 CDI CDI + 0.85% 2012 Yearly 6 2017
Working capital - Santander 9/3/2010 CDI CDI + 1.4% 2010 Yearly 1 2014
BNDES - FINEM 11/5/2007 TJLP TJLP + 4.3% 2009 Monthly 33 2014
BNDES - FINEM direct 11/30/2009 TJLP TJLP + 2.58% 2011 Monthly 64 2017
BNDES - FINEM + 1 11/30/2009 TJLP TJLP + 1% + 2.58% 2011 Monthly 64 2017
BNDES - FINEM direct PSI 11/30/2009 R$ 4.5% 2011 Monthly 93 2019
BNDES - Capex 11/12 Subcred.2 12/6/2011 TJLP TJLP + 1.81% 2013 Quarterly 72 2019
BNDES - Light Ger 9/27/2011 TJLP TJLP + 1.97% 2012 Monthly 192 2028
BNDES - PROESCO 1st funding 9/16/2008 TJLP TJLP + 2.5% 2009 Monthly 36 2014
BNDES - PROESCO 2nd funding 4/17/2009 TJLP TJLP + 2.51% 2009 Monthly 42 2015
BNDES - PROESCO 3rd funding 4/12/2010 TJLP TJLP + 2.18% and 4.5% 2010 Monthly 43 2015
BNDES - PROESCO 4th funding 9/15/2010 TJLP TJLP + 2.05% and 5.5% 2010 Monthly 52 2016
BNDES - PROESCO 5th funding 11/16/2010 TJLP TJLP + 2.05% and 5.5% 2011 Monthly 52 2016
BNDES - PROESCO 6th funding 7/29/2011 TJLP TJLP + 1.81% 2012 Monthly 60 2017
BNDES - PROESCO 7th funding 9/27/2011 TJLP TJLP + 1.81% 2012 Monthly 60 2017
NP - Renova Energia 3/18/2011 CDI CDI +3.00% 2011 Lump sum 1 2012
Renova Energia - BNDES TJLP+1.92% 5/5/2011 TJLP TJLP + 1.92% 2013 Monthly 192 2029
Renova Energia - BNDES TJLP+2.18% 5/5/2011 TJLP TJLP + 2.18% 2013 Monthly 192 2029
Renova Energia - Banco do Nordeste 6/30/2006 R$ 8.08% to 9.5% 2006 Monthly 174 2026

In addition to the collaterals indicated above, loans are guaranteed by receivables in the approximate
amount of R$88,609 (R$45,978 on December 31
st
, 2010).

R$49,940 were received from financing signed with BNDES in March 2011 for the investment
program of subsidiary Light SESA and R$1,632 for subsidiary Light Energia.

On August 19
th
, 2011, subsidiary Light Energia through Banco do Brasil, issued promissory notes, by
means of a public offering with restricted placement efforts of 40 promissory notes, in a single series,
with unit face value of R$10,000, amounting to R$400,000, as approved at the Special Shareholders
Meeting held on August 5
th
, 2011. The proceeds obtained through this issue were fully used to: (i)
acquire corporate interest in Renova Energia S.A. by Light Energia; and (ii) finance working capital of
Light Energia. Promissory notes would be effective for 180 days, as of the date of issue, therefore,
expiring on February 15
th
, 2012, but were fully settled by subsidiary Light Energia on December 29
th
,
2011.

In subsidiary Light SESA, other two funds were raised in the last quarter of 2011, the first one
summing up R$85,000 through Banco BNP Paribas Brasil S/A on October 17
th
, 2011; and the second
one summing up R$87,400 through Bank of America Merrill Lynch Banco Mltiplo S.A. on
November 7, 2011, for working capital purposes.

On December 6
th
, 2011, R$440,000 were released to subsidiary Light SESA through financing signed
with BNDES relating to 2011/2012 Capex.

R$1,770 were raised with BNDES in 2011 for Light Esco, necessary to implement energy efficiency
projects.

19fmarf2012 71
The principal of consolidated long-term loans and financing matures as follows (excluding financial
charges) on December 31
st
, 2011:

Local Foreign
Currency Currency Total
2013 298,841 6,431 305,272
2014 379,637 112,210 491,847
2015 237,325 36,109 273,434
2016 236,016 33,764 269,780
after 2016 478,508 31,182 509,690
Total 1,630,327 219,696 1,850,023
Consolidated

In percentage terms, the variation of major foreign currencies and economic ratios in the period, which
are used to adjust loans, financing and debentures, was as follows in the years:

12/31/2011 12/31/2010
USD 12.58 (4.31)
EUR 9.25 (11.14)
IGP-M 5.95 11.32
CDI 11.64 9.75
SELIC 11.62 9.78
Variation %

19fmarf2012 72

Below, the consolidated loans and financing breakdown in 2010 and 2011:

Principal Charges
Balance as of December 31, 2009 2,427,961 127,553
Loans and financing 1,094,420 -
Monetary and exchange variation 62,120 713
Financial charges accrued - 159,366
Financial charges paid - (259,328)
Financing amortization (2,248,451) -
Funding cost (1,121) -
Amortization of transaction costs 145 -
Capitalized financial charges 110 (110)
Acquisition of interest - Renova Energia 210,331 -
Monetary and exchange variation 16,378 1,649
Financing amortization (544,960) -
Funding cost (802) -
Amortization of transaction costs 150 -
Capitalized financial charges 611 (611)

Total principal amount is stated net of loans-related costs - BNDES, as provided for in CVM Rule N
o.

556/08. These costs are broken down in the table below:

12/31/2010
Incurred Value to be Total Total
Issue value recognized Cost Cost
Bndes Direto Finem - Light Sesa 116 309 425 425
Bndes Direto Finem +1 - Light Sesa 116 309 425 425
Bndes Direto PSI - Light Sesa 46 180 226 226
Bndes Direto Subcredits 001/018 - Light Sesa 7 795 802 -
Bndes Direto Finem - Light Energia 3 8 11 11
Bndes Direto Finem +1 - Light Energia 3 8 11 11
Bndes Direto PSI - Light Energia 5 17 22 22
Total 296 1,626 1,922 1,120
12/31/2011

The Companys exposure to interest rate, foreign currency and liquidity risks related to loans and
financing is reported in Note 34.

Covenants

Bradescos bank credit certificates, loans with Banco Santander and with BNDES, classified as current
and non-current, requires that the Company maintain certain debt ratios and covenants. In the year
ended December 31
st
, 2011, the Company and its subsidiaries are in conformity with all required debt
covenants.

19fmarf2012 73
18. DEBENTURES AND FINANCIAL CHARGES

Charges
Financing Entity Current Non Current Current 12/31/2011 12/31/2010
Debentures 4th Issue (Light SESA) 20 49 - 69 86
Debentures 5th Issue (Light SESA) 179,821 548,006 16,636 744,463 807,406
Debentures 6th Issue (Light SESA) - - - - 301,731
Debentures 7th Issue (Light SESA) - 647,832 12,385 660,217 -
Debentures 1st Issue (Light Energia) - 171,067 4,684 175,751 -
Debentures 2nd Issue (Light Energia) - 423,178 194 423,372 -
Local Currency - Total 179,841 1,790,132 33,899 2,003,872 1,109,223
Consolidated
Principal Total

Below, contractual conditions of debentures on a consolidated basis as of December 31
st
, 2011:

Principal Amortization
Date of Interest Rate Remaining
Financing Entity Signature Currency p.a. Beginning Payment Installments Expiration
Debentures 4th Issue (Light SESA) 6/30/2005 TJLP TJLP + 4% 2009 Monthly 42 2015
Debentures 5th Issue (Light SESA) 1/22/2007 CDI CDI + 1.50% 2008 Quarterly 9 2014
Debentures 7th Issue (Light SESA) 5/2/2011 CDI CDI + 1.35% 2011 Yearly 2 2016
Debentures 1st Issue (Light Energia) 4/10/2011 CDI CDI + 1.45% 2011 Half-yearly 10 2016
Debentures 2nd Issue (Light Energia) 12/29/2011 CDI CDI + 1.18% 2016 Yearly 4 2019

Total principal amount is reported net of debentures issue costs, as provided for in CVM Resolution
N
o.
556/08. These costs are broken down in the table below:

12/31/2010
Incurred Value to be Total Total
Issue value recognized Cost Cost
Debentures 4th Issue (Light SESA) 7,452 16 7,468 7,468
Debentures 5th Issue (Light SESA) 8,875 3,573 12,448 12,448
Debentures 6th Issue (Light SESA) 5,291 - 5,291 5,291
Debentures 7th Issue (Light SESA) 479 3,142 3,621 -
Debentures 1st Issue (Light Energia) 122 727 849 -
Debentures 2nd Issue (Light Energia) 10 1,822 1,832 -
Total 22,229 9,280 31,509 25,207
12/31/2011

Installments related to principal of long-term debentures have the following maturities (financial
charges not included) on December 31
st
, 2011:

12/31/2011
2013 243,441
2014 304,606
2015 407,815
2016 516,148
after 2016 318,122
Total 1,790,132

19fmarf2012 7+

Below, debentures breakdown on a consolidated basis in 2010 and 2011:

Principal Charges
Funding cost - -
Amortization of funding costs 4,436
Funding cost (6,302) -
Amortization of funding costs 3,727 -

On May 2
nd
, 2011, the subsidiary Light SESA conducted the seventh issue of non-convertible
debentures through a public offering with restricted placement efforts, pursuant to CVM Rule N
o.

476/05, in the amount of R$650,000. The inflow of funds was recorded under the subsidiarys cash on
May 5, 2011, in the restated amount of R$650,974. The proceeds obtained with the issue were entirely
used to: (i) fully settle the debt originated from the subsidiarys sixth issue of debentures conducted in
June 2011, the principals balance of which was R$300,000; and (ii) finance the Company's investment
program. The debentures expire in five years as of the date of issue, on May 2
nd
, 2016.

On April 10
th
, 2011, the subsidiary Light Energia conducted its first issue of non-convertible
debentures through a public offering with restricted placement efforts, pursuant to CVM Rule N
o.

476/05, in the amount of R$170,000. The inflow of funds was recorded under the subsidiarys cash on
May 12, 2011, in the restated amount of R$171,794. The proceeds obtained with the issue were
entirely used to: (i) finance Light Energias investment program; and (ii) finance the companys
working capital. Debentures will expire in five years as of the date of issue, on April 10
th
, 2016.

On December 29
th
, 2011, subsidiary Light Energias second issue of debentures was conducted
amounting to R$425,000. As approved at the Special Shareholders Meeting of Light Energia held on
December 16
th
, 2011, the proceeds obtained with the issue shall be used to (i) early redeem promissory
notes, including charges, issued on August 19
th
, 2011, composing a single series of Light Energias
first issue; and (ii) working capital reinforcement.

Companys exposure to interest rate, foreign currency and liquidity risks related to debentures is
reported in Note 34.

Covenants

The 5
th
and 7
th
issue of Debentures of Light SESA and the 1
st
and 2
nd
issue of Debentures of Light
Energia require the maintenance of indebtedness indexes and coverage of interest rates. In the fiscal
year ended December 31
st
, 2011, the Companies complied with all the covenants required.

19fmarf2012 75

19. REGULATORY CHARGES

CURRENT 12/31/2011 12/31/2010
Fuel usage account quota CCC 25,472 25,472
Energy development account quota CDE 19,266 17,182
Global reversal reserve quota RGR 11,490 1,394
Charges for capacity and emergency acquisition 56,128 73,170
Total 112,356 117,218
Consolidated

Fuel Consumption Account (Conta Consumo de Combustvel, or CCC) - This is a charge to the
invoiced revenues derived by distribution operators, intended as a subsidy toward the fuel costs
associated with isolated electric systems so that consumer rates payable in locations within such
systems are similar to those charged in interconnected systems.

Energy Development Account (Conta de Desenvolvimento Energtico, or CDE) - This charge is
intended to further energy development in states and increase competitiveness of the energy generated
from alternative sources in those locations served by interconnected grid systems, thus allowing an
universal electric power supply service. The amounts payable are also defined by ANEEL.

Global Reversal Reserve (Reserva Global de Reverso, or RGR) - This is a charge applying to the
Brazilian electric power industry, payable every month by electric power utility operators for the
purpose of funding reversal, expansion and improvement of electric power utility services. The annual
amount of this charge corresponds to 2.5% of an operator's investments in assets employed in the
electric power utility service, subject to a cap of 3.0% of the operator's annual revenue.

Emergency Capacity Charge and Emergency Acquisition Charge (Encargo de Capacidade Emergencial
e Encargo de Aquisio Emergencial, ECE and EAE) These charges comprise operating, tax, and
administrative costs incurred by the Comercializadora Brasileira de Energia Emergencial CBEE
when purchasing generation or power capacities, which costs are prorated among end consumers
served by the NIS based on each individual power consumption pattern.

19fmarf2012 76

20. PROVISIONS

The Company and its subsidiaries are parties in tax, labor and civil lawsuits and regulatory proceedings
in several courts. Management periodically assesses the risks of contingencies related to these
proceedings, and based on the legal counsels opinion it records a provision when unfavorable
decisions are probable and whose amounts are quantifiable.

Below, provisions are composed as follows:

NO CIRCULANTE
Balance as of December 31, 2009 163,655 252,149 166,426 87,123 669,353
Additions 18,208 38,909 1,578 36,121 94,816
Adjustments - 22,614 16,485 5,398 44,497
Write-offs / payments (13,371) (75,852) (4,147) (26,944) (120,314)
Write-offs / reversals (836) (82,238) - (53,381) (136,455)
Additions 32,639 67,033 1,495 - 101,167
Adjustments - 10,758 11,640 3,297 25,695
Write-offs / payments (23,903) (58,324) - (13,508) (95,735)
Write-offs / reversals (26,271) (11,477) (2,518) (22,599) (62,865)
Write-offs / transfers - - (4,481) - (4,481)
Judicial deposits
Balance as of December 31, 2011 41,820 7,787 4,375 - 53,982
Consolidated
Labor Civil Tax Other Total

Provision for labor proceedings:

These labor proceedings mainly involve the following matters: overtime; hazardous work wage
premium; equal pay; pain and suffering; subsidiary-joint liability of employees from outsourced
companies; difference of 40% fine of FGTS (Government Severance Indemnity Fund for Employees)
derived from the adjustment due to understated inflation and overtime.

19fmarf2012 77

Provision for civil proceedings:

12/31/2011 12/31/2010
Civil proceedings (a) 101,875 87,842
Special civil court (b) 18,035 25,138
"Cruzado" Plan 43,662 42,602
Total 163,572 155,582
Accrued Value (probable loss) Civil

a) The Provision for civil proceedings comprises lawsuits in which the Company and its subsidiaries
are defendants and it is probable the claim will result in a loss in the opinion of the respective
attorneys. The claims mainly involve alleged moral and property damage due to the Companys
ostensive behavior fighting irregularities in the network, as well as consumers challenging the
amounts paid.
b) Lawsuits in the Special Civil Court are mostly related to matters regarding consumer relations,
such as improper collection, undue power cut, power cut due to delinquency, network problems,
various irregularities, bill complaints, meter complaints and problems with ownership transfer.
There is a limit of 40 minimum monthly wages for claims under procedural progress at the Special
Civil Court. Accruals are based on the average of the last 12 months of condemnation amount.
In the last quarter of 2010, the Company obtained a favorable decision in last resort (High Court of
Justice STJ) on the final decision on lawsuit #1995.001.073862-2 against CSN in which it was
discussed the legality of the tariff adjustment authorized by the National Department of Water and
Electric Power (DNAEE) during the freeze period of prices (Cruzado Plan). This decision enabled
the reversal of the accrued amount of R$61,735, as contra-account in item operating expenses.
Provision for tax proceedings:
12/31/2011 12/31/2010
PIS/COFINS RGR and CCC 8,561 8,561
INSS tax deficiency notice 42,942 40,964
INSS quarterly 23,876 22,579
ICMS (a) 104,938 94,400
CIDE - 4,988
Other 6,161 8,850
Total 186,478 180,342
Tax Accrued Value (probable loss)

a) The provision recorded mainly refers to litigation on the application of State Law n 3,188/99,
which restricted the appropriation of ICMS credits incurred on the acquisition of assets destined to
fixed assets, requiring that credit occurs by installments, while this restriction was not provided for in
the Supplementary Law n 87/96. There are other tax deficiency notices which are purpose of objection
within administrative and judicial levels. This provision is yearly adjusted in January by UFIR (Fiscal
Reference Unit).
Administrative Regulatory Provisions and Others

The Company will now discuss regulatory contingencies of its subsidiaries in connection with
administrative issues pending with ANEEL.

19fmarf2012 78

Deficiency Notice ANEEL No. 082/2010-SFE This deficiency notice was issued on June 18,
2010, and a fine was imposed in the amount of R$16,052 on account that subsidiary Light
SESA allegedly failed to comply with continuity metrics DEC and FEC for 65 groups during
2009. The incident occurred on November 10, 2009 (the Furnas Blackout) was taken into
consideration for computation of the relevant metrics. Light SESA filed an appeal on July 8,
2010, and filed for a mitigation so that the shortage experienced on November 10, 2009 is not
considered for the purpose of computing the DEC and FEC metrics. Currently this appeal is
pending review by ANEEL. A provision in the amount of R$4,110 was set up based on the
opinion of the Company's legal counsels, which opinion also indicates that ANEEL is likely to
reduce the amount of the fine imposed based on the subsidiary's allegations that the Furnas'
transmission line downtime should be disregarded in the computation of continuity metrics on
account of their nature as force majeure/act of God events and thus capable of defeating the
liability of the subsidiary Light SESA in the incident.
Reversal of IPTU (urban real estate tax) Provision Subsidiary Light SESA accrued IPTU
provision amounting to R$25,641 referring to lawsuits questioning the failure to pay IPTU
additional form (1998) and the unconstitutionality of IPTU gradual increases and collection of
services taxes. Subsidiary Light SESA obtained final favorable decision in few of these
lawsuits and debt significantly decreased. Therefore, the subsidiary reversed part of provision
in the amount of R$18,246 in the period.

21. CONTINGENCIES

The Company and its subsidiaries are parties to lawsuits that Management believes that risk of loss are
less than probable, based on the opinion of its legal counsels. Therefore, no provision was established.
Contingencies with possible loss are broken down as follows:

Number of Number of
proceedings proceedings
Civil 155,476 13,658 159,200 11,831
Labor 317,524 1,166 345,850 1,137
Tax 2,882,800 302 858,400 982
Total 3,355,800 15,126 1,363,450 13,950
Nature
12/31/2011 12/31/2010
Consolidated
Balance Balance

19fmarf2012 79

The main reasons for litigations are listed below:

a) Civil

Irregularities Subsidiary Light SESA has several lawsuits where irregularities are discussed,
arising from commercial losses due to irregular connections, clandestine connections, meters
alteration and equipment theft, known in Portuguese as gatos. Most of the litigations are
based on the evidence of irregularity and amounts charged by the concessionaire in view of
such evidence. The amount currently assessed represented by these claims is R$54,784.
Amounts charged and bills Many litigations are currently in progress and discuss amounts
charged by the subsidiary Light SESA for services provided, such as demand amounts,
consumption amounts, financial charges, rates, insurances, among other. The amount currently
assessed represented by these claims is R$33,419.
Accidents Subsidiary Light SESA is defendant in lawsuits filed by victims and/or their
successors, regarding accidents with Lights electric power grid and/or service provision for
several causes. The amount currently assessed represented by these claims is R$26,401.
Discontinuance and Suspension There are several lawsuits in progress to discuss service
discontinuance, whether by fortuitous cases or events of force majeure, or for purposes of
intervention in the electrical system, among other reasons, and also service suspension,
whether for indebtedness, denied access or meters replacement, among other facts for
suspension. The amount currently assessed represented by these claims is R$15,952.
Equipment and Network Subsidiary Light SESA has litigations due to electronic meters used
to measure energy consumption. Litigations address several themes, such as meter
functionality, approval by metrological agency, among others and, also, litigations about its
network, due to its extension, removal or even financial contribution of the client to install the
network. The amount currently assessed represented by these claims is R$9,185.

b) Tax

LIR/LOI - IRPJ/CSLL - Subsidiary Light SESA filed writ of mandamus N
o.

2003.51.01.005514-8 (Proceedings 16682.720216/2010-83, 15374-001.757/2008-13 and
16682.721091/2011-90) to challenge an assessment of corporate income tax (IRPJ) and social
contribution (CSLL) on income earned by its overseas subsidiaries LIR and LOI since 1996
that was allegedly not offered to taxation, as well as the demand for including equity pickup
income in the assessment of the IRPJ and CSLL for calendar years up to 2002 and subsequent
years. Light SESA attempted to partially discontinue this writ of mandamus to include the tax
debts in the repayment program created by Law N
o.
11,941/09, and continuing discussing the
assessment in connection with the equity accounting method. However, the tax authority did
not accept this partial discontinuance, nor did the competent court. As a result, Light SESA
fully discontinued this writ of mandamus, thus, changed the assessment methodology for the
IRPJ/CSLL, which had previously been done based on the income, to use the equity method of
accounting. The tax authorities disallowed this change and assessed Light SESA in relation to
2005. Light SESA filed a challenge in response to this assessment, which was deemed
groundless. The voluntary appeal lodged by Light SESA is pending judgment. Referring to
2004, the tax authorities disregarded the information contained in the DIPJ (corporate income

19fmarf2012 80
tax return) and based on non-rectified DCTF (Statement of Federal Tax Debts and Credits),
sent a letter to collect the taxes. Light SESA filed a writ of mandamus. Nevertheless, as the
injunction pleaded was rejected, then the company filed Provisional Remedy Anticipating Tax
Foreclosure to post bond with letter of guarantee. Light pleaded the discontinuance of the writ
of mandamus and will discuss the merit of the case in the respective tax foreclosure records. In
the last quarter of 2011, Light was also assessed in relation to 2006 and 2008 fiscal years, an
objection was filed and is pending judgment. The amounts involved on December 31
st
, 2011
are: R$138,500 referring to 2005 tax assessment (R$131,500 on December 31
st
, 2010),
referring to the 2006 to 2008 tax assessment is R$186,500 and R$72,900 referring to 2004
lawsuit.

IRRF - Disallowance of tax offset - LIR/LOI (Proceeding 10768.002.435/2004-11) There is
no confirmation of tax offsets related to withholding income tax credits on financial
investments and withholding income tax credits on the payment of energy accounts by public
bodies, offset due to outstanding balance of Corporate Income Tax in the reference year of
2002. The motion to disagree filed by Light SESA was deemed groundless. The voluntary
appeal lodged by Light SESA is pending judgment. The quantifiable amount in this claim as of
December 31
st
, 2011 is R$197,700.

Normative Instruction (NI) No. 86 (Proceeding 10707000751/2007-15 - (2003 through 2005)
This deficiency notice was issued to assess a fine on the Company for alleged failure to make
electronic filings as required by NI. No. 86/2001, for calendar years 2003 through 2005. The
voluntary appeal filed by subsidiary Light SESA was dismissed, upon which a special appeal
was filed and also deemed groundless. Motion for clarification is pending judgment. The
quantifiable amount in this claim as of December 31
st
, 2011 is R$278,900 (R$257,800 on
December 31
st
, 2010).

ICMS on low-income subsidy (Proceeding E-34/059.150/2004) Tax Deficiency Notice
drawn up to charge ICMS (State VAT) on amounts of economic subsidy to low-income
consumers of electric power arising from Global Reversion Reserve Funding. Light SESAs
appeal was deemed groundless. An appeal was lodged by Light SESA with the Taxpayers
Council, which decided this appeal shall return to the administrative lower court for due
diligence. Currently, the proceeding is under expert examination. The quantifiable amount in
this lawsuit is R$78,900 on December 31
st
, 2011.

ICMS Commercial Losses (Tax Deficiency Notices ns 03326780-8, 04011949-7 and
04.028.752-6) These refer to notices of infringement aiming at collecting ICMS, Government
Fund to Combat Poverty - FECP and penalty (from Jan/99 to Dec/2003) as Light SESA failed
to pay deferred ICMS and FECP in operations preceding the distribution of electric power, i.e.,
in operations carried out between generation and distribution company, due to commercial
losses. Light SESA was also assessed in the last quarter referring to the period between
January 2006 and December 2010. The subsidiary Light SESA objected these tax assessments
which are pending judgment. The quantifiable amount in this lawsuit on December 31
st
, 2011
is R$1,035,800.

Inspection Fee for Occupancy and Permanence in Zones, Routes and Public Areas (TFOP)
The subsidiary Light SESA has several lawsuits discussing TFOP, levied by the municipality
of Barra Mansa. Light SESA filed motion to dismiss the execution of these lawsuits and at the
Federal Supreme Court STF, Light SESA obtained injunction sentencing the suspension of

19fmarf2012 81
collections until judgment of Extraordinary Appeal n 640286. The quantifiable amount in this
lawsuit on December 3
1st
, 2011, is R$179,309.
IRRF (withholding income tax over dividends) (Proceeding 16682.721195/2011-02) This a
tax deficiency notice aiming the collection of withholding income tax (IRRF) over amounts
paid by the Company as dividends, under the allegation that these derived from no profit,
originated from recording of deferred tax assets in the income statement, then, characterized as
payments without cause subject to tax levy. In view of absolute regular standing of
accounting, corporate and tax procedures adopted, the Company filed objection which is
pending judgment. The quantifiable amount in this proceeding is R$347,900 on December 31
st
,
2011 and attorneys deem chances of loss as possible.

ICMS Rheem (Proceeding E-04/892.090/99) This is a tax deficiency notice to collect ICMS
(State VAT), in view of subsidiary Light SESAs utilization of ICMS accumulated credits of
Rheem Embalagens Ltda. to acquire inputs and raw material in the State of Rio de Janeiro.
Objection was deemed groundless. Voluntary Appeal was filed which was rejected. Lights
appeal is pending judgment. The quantifiable amount in this proceeding on December 31
st
,
2011 is R$129,400.

22. POST-EMPLOYMENT BENEFITS

Light Groups companies sponsor Fundao de Seguridade Social BRASLIGHT, a nonprofit closed
pension entity, whose purpose is to provide retirement benefits to the Companys employees and
pension benefits to their dependents.

BRASLIGHT was incorporated in April 1974 and has four plans - A, B, C and D established in
1975, 1984, 1998 and 2010, respectively, and plan C received migration from about 96% of the active
participants of plans A and B.

Current plans in effect include defined-benefit- (Plans A and B), mixed-benefit- (Plan C), and defined-
contribution plans (Plan D).

a) Below, a summary of the Company's liabilities involving pension plan benefits as stated on its
balance sheet:

Current Non-current Total Current Non-current Total
Contractual debt with pension fund 70,697 991,897 1,062,594 95,048 920,630 1,015,678
Additional actuarial liabilities CVM 600 - 23,718 23,718 - - -
Accounts payable - Braslight 8,865 - 8,865 - - -
Other 963 - 963 507 - 507
Total 80,525 1,015,615 1,096,140 95,555 920,630 1,016,185
12/31/2011 12/31/2010

On October 2
nd
, 2001 the Bureau of Supplementary Pension Plans approved an agreement for the
purpose of balancing accounting deficits and refinancing of repayable reserves, which began to be paid
out in 300 monthly as of July 2001. As of December 31
st
, 2011 there were 174 monthly installments
remaining, in a total contract outstanding amount of R$1,062,594.

Until May 2009 the installments were escalated against the variation of the IGP-DI (with one-month
lag) and actuarial interest at the rate of 6% p.a.. Beginning in June 2009, IPCA replaced IGP-DI as the
applicable escalation index (with one-month lag).

19fmarf2012 82

The agreement is adjusted yearly against the deficit (surplus) reported by Braslight, and as a result the
amounts of outstanding installments may increase or decrease accordingly. This adjustment is fully
recognized as financial income in the sponsors' income for the year.

Pension plan expenses are recorded under financial income as they represent interest rates and
monetary variation incurring on debt with Braslight.

Referring to pension plans, the liability recognized in the balance sheet is the debt covenanted with
Fundao to amortize actuarial liabilities. In view of actuarial report as of December 31
st
, 2011,
considering the assumptions adopted by the Company, summarized hereinbelow which pointed an
amount exceeding total debt, the Company added the amount of R$23,718 under Pension Plan.

Below, contractual liabilities breakdown in 2011 and 2010:

Total
Consolidated
Contractual liabilities on 12/31/2009 956,430 95,044 861,386
Amortization in the period (93,251) (93,251) -
Restatements in the period 152,499 54,243 98,256
Transfer to current - 39,012 (39,012)
Contractual liabilities on 12/31/2010 1,015,678 95,048 920,630
Amortization in the period (98,701) (98,701) -
Restatements in the period 145,617 24,890 120,727
Transfer to current - 49,460 (49,460)
Contractual liabilities on 12/31/2011 1,062,594 70,697 991,897
Current Non-current

b) Plan description

Plan A/B - Benefits in these plans are 'defined benefits' and correspond to the difference between
application of certain percentage, between 80% and 100%, of the average of the last 12 and the last 36
salaries, escalated as of the date the benefit began to be paid out, and the amount of the benefit paid by
the INSS, whichever is the highest.

Plan C - During the capitalization phase, elective benefits are 'defined-contribution' benefits not linked
to INSS benefits, and contingent benefits (i.e. sickness allowance, permanent disability pension,
pensions payable upon death of active, disabled, or sick participants), as well as continued income,
once granted, are 'defined' benefits. The assets of the two portions are determined in shares.

For a participant migrating from Plan A/B to Plan C, a settled lifetime income benefit was granted,
reversible into a pension benefit, proportionate to the amount of contributions made to Braslight at
migration time, as of the participant's latest enrollment in the Fundao, which is deferred until the
participant has satisfied a number of qualification requirements. This portion is called the Plan C
Settled Defined Benefit Subplan.

Plan D - This plan was approved by the Ministry of Social Security's National Bureau of
Supplementary Pension (PREVIC/MPS) on March 22
nd
, 2010, with the first contribution made in April
2010. In this plan, benefits are 'defined contribution' benefits before and after the relevant grant.

19fmarf2012 83

Below, consolidated actuarial information:
12/31/2011 12/31/2010
Present value of actuarial liabilities (2,255,489) (2,123,507)
Plan assets' fair value 1,169,198 1,120,960
Effect of restriction imposed by Paragraph 58(b) (including IFRIC 14) (21) (30)
Net liabilities (1,086,312) (1,002,577)
Net liabilities, CVM 600/2009 (1,086,312) (1,002,577)
Balance of agreement covenanted with Braslight (1,062,594) (1,015,678)
Consolidated

Changes in plan assets fair value are as follows:

12/31/2011 12/31/2010
Fair value of assets at the beginning of the year 1,120,960 1,105,523
Expected returns for the year 118,508 114,886
Actuarial gains/(losses) in the plan assets 29,099 11,169
Sponsor's contributions 105,083 94,601
Participants' contributions 54 50
Benefits paid by the plan/company (204,577) (205,269)
Acquisitions/disposals effects 71 -
Fair value of assets at the end of the year 1,169,198 1,120,960
Consolidated

Changes in defined-benefit liabilities present value are as follows:

12/31/2011 12/31/2010
Fair value of liabilities at the beginning of the year 2,123,507 2,055,223
Cost of current service 1,610 1,592
Interest on actuarial obligations 216,774 212,216
Participants' contributions in the year 54 50
Recorded actuarial gains/(losses) 118,052 59,695
Benefits paid in the year (204,577) (205,269)
Inflow (outflow) of net transfers 69 -
Fair value of liabilities at the end of the year 2,255,489 2,123,507
Consolidated

19fmarf2012 8+

Amounts recognized in the income statement are as follows:

12/31/2011 12/31/2010
Cost of current service 1,610 1,592
Interest on actuarial liabilities 216,774 212,216
Expected return on plan assets (118,509) (114,886)
Estimated expected cost 99,875 98,922
Consolidated

Changes in net liabilities are as follows:

12/31/2011 12/31/2010
Net liabilities at the beginning of the year 1,002,577 949,727
Expenses recognized in the income statement 99,875 98,922
Contributions paid (16,137) (46,072)
Inflow (outflow) of net transfers (3) -
Net liabilities at the end of the year 1,086,312 1,002,577
Consolidated

External actuarys estimate for expense to be recognized in 2012 is as follows:

2012
Cost of current service 941
Interest on actuarial liabilities 228,002
Expected return on plan assets (139,614)
89,329

Light expects to contribute a total amount of R$110,239 to the pension fund in 2012.

The plan assets main categories, as percentage of total plan assets, are as follows:

12/31/2011 12/31/2010
Fixed income 74.86% 63.79%
Equities 13.07% 22.32%
Real property 4.98% 1.89%
Other 7.09% 12.00%
Expected cost estimated 100% 100%
Consolidated

Among Braslight assets, R$75,069 were considered as other investments in view of unappealable
court decision on understated inflation incurring on Development National Fund Liabilities - OFND
filed by the Brazilian Association of Privately-Held Supplementary Pension Plan Entities - ABRAPP

19fmarf2012 85
on behalf of its members, against the federal government and the National Development Fund,
considered as realizable asset by the Company.

The effective return on plan assets amounted to R$147,607 in 2011 (R$126,055 as of December 31
st
,
2010).

Actuarial considerations:

12/31/2011 12/31/2010
Nominal interest rate (discount) at present value of the actuarial liabilities 10.56% 10.66%
Expected rate of return on nominal plan assets 10.96% 10.96%
Annual inflation rate 4.50% 4.40%
Salary growth rate 6.59% 6.49%
Adjustment index of continued benefits 4.50% 4.40%
Capacity factor 98.00% 98.00%
Revolving rate Based on age Based on age
General mortality table AT - 83 (1) AT - 83 (1)
Disability (plans A/B) LIGHT - Strong LIGHT - Strong
Disability table (plan C settled) LIGHT - Strong LIGHT - Strong
Mortality table of disabled people IAPB-57 IAPB-57
Active participants 3,452 3,454
Retiree and pensioner participants 5,671 5,679
(1)
Table without aggravation
Consolidated

23. OTHER PAYABLES

CURRENT 12/31/2011 12/31/2010 12/31/2011 12/31/2010
Advances from clients 1,822 - 3,557 3,491
Compensation for use of water resources - - 4,205 4,000
Energy Research Company EPE - - 1,124 503
National Scientific and Technological Development Fund FNDCT - - 2,248 1,007
Energy Efficiency Program PEE - - 51,452 48,925
Research and Development Program R&D - - 30,139 37,445
Ex-isolated charges - - - 10,966
Public lighting fee - - 81,362 69,243
Provision for voluntary redundancy - - 2,000 23,113
Other 666 1,981 51,067 37,625
Total 2,488 1,981 227,154 236,318
NON-CURRENT
Provision for success fees - - 23,161 14,306
Global reversal reserve - - 69,933 69,933
Use of public asset - UBP - - 60,317 128,746
Other - - - 13,670
Total - - 153,411 226,655

a) In accordance with Concession Agreement No. 12/2001 dated March 15
th
, 2001, which governs the
development of the potential hydroelectric power of the Paraba do Sul river in the municipalities
of Itaocara and Aperib, subsidiary Itaocara Energia Ltda. shall pay to the federal government, by
way of a fee owing to use of a public asset, as of the start-up date (scheduled for 2013) and until
the concession expires or while the potential hydroelectric power is explored, monthly installments
equal to one twelfth (1/12) of the proposed annual payment of R$2,017, duly escalated against the
variation of the IGP-M, or any other index as shall replace the former. The contra-account to
liability escalation is being recognized as an intangible asset during the construction phase, without
any impact on results. Following start-up, the escalation will be recognized directly in the income
statement (see Note 15).

19fmarf2012 86

b) The Company accrued the amount of R$23,161 (R$14,306 in 2010) to cover contingent fee
liabilities arising from disputes wherein the likeliness of loss is deemed remote.

24. RELATED-PARTY TRANSACTIONS

On December 31
st
, 2011, Light S.A. pertained to the controlling group Companhia Energtica de
Minas Gerais CEMIG, Luce Empreendimentos e Participaes S.A. and Rio Minas Energia
Participaes S.A (RME) company controlled by Redentor Energia S.A.

Interest in subsidiaries and jointly-owned subsidiaries is outlined in the Note 2.

Below, a summary of related-party transactions occurred in the years ended 2011 and 2010:

Maturity Conditions Remaining
Contracts with the same group Relationship with Original
Date
date for termination balance Agreements
(Agreement objectives and characteristics)
Light S.A. amount or term or expiration 12/31/2011 conditions
Strategic agreement CEMIG 30% Price established
Purchase agreement of electric power between (Party of the 614,049
Jan / 2006 Dec / 2038
of remaining 437,397 in the regulated market
Light SESA and CEMIG controlling group) balance
Jan / 2010 Dec / 2039
Strategic agreement CEMIG Price established
Sale agreement of electric power between (Party of the 156,239 Jan / 2005 Dec / 2013 N / A 40,884 in the regulated market
Light SESA and CEMIG controlling group)
Collection of distribution systemusage charges (Party of the - Nov / 2003 Undetermined N / A 213 in the regulated market
between Light SESA and CEMIG controlling group)
Commitment to the basic electric network usage (Party of the - Dec / 2002 Undetermined N / A 1,701 in the regulated market
charges between Light Energia and CEMIG controlling group)
Commitment to the basic electric network usage (Party of the - Dec / 2002 Undetermined N / A 11 in the regulated market
Strategic agreement
Loan agreement with Light S.A., which holds Lightger S.A
50.9% in Lightger, in order to honor financial (Jointly-owned 35,586 Sep / 2012 N / A 11,606 CDI + 0.9% p.a
commitments related to the implementation of the subsidiary)
Pacambi small hydroelectric power plant (PCH)
Pension Plan
Fundao de Seguridade Social (Social Security BRASLIGHT 535,052 Jun / 2001 Jun / 2026 N / A 1,096,140 IPCA+ 6% p.a
Foundation) - BRASLIGHT (Party of the
controlling group)
Jan/11 to
Sep/11

Below, a summary of agreements executed with related parties:

19fmarf2012 87
Maturity Conditions Remaining
Contracts with the same group Relationship with Original Date date for termination balance Agreements
(Agreement objectives and characteristics)
Light S.A. amount or term or expiration 12/31/2011 conditions
Purchase agreement of electric power between (Party of the 614,049 Jan / 2006 Dec / 2038 of remaining 437,397 in the regulated market
Jan / 2010 Dec / 2039
Sale agreement of electric power between (Party of the 156,239 Jan / 2005 Dec / 2013 N / A 40,884 in the regulated market
Light SESA and CEMIG controlling group)
Collection of distribution system usage charges (Party of the - Nov / 2003 Undetermined N / A 213 in the regulated market
between Light SESA and CEMIG controlling group)
Commitment to the basic electric network usage (Party of the - Dec / 2002 Undetermined N / A 1,701 in the regulated market
Commitment to the basic electric network usage (Party of the - Dec / 2002 Undetermined N / A 11 in the regulated market
Strategic agreement
Loan agreement with Light S.A., which holds Lightger S.A
50.9% in Lightger, in order to honor financial (Jointly-owned 35,586 Sep / 2012 N / A 11,606 CDI + 0.9% p.a
commitments related to the implementation of the subsidiary)
Pacambi small hydroelectric power plant (PCH)
Pension Plan
Fundao de Seguridade Social (Social Security BRASLIGHT 535,052 Jun / 2001 Jun / 2026 N / A 1,096,140 IPCA+ 6% p.a
Foundation) - BRASLIGHT (Party of the
controlling group)
Jan/11 to
Sep/11

Related-party transactions have been executed under usual market conditions.

MANAGEMENT REMUNERATION

Policy regarding remuneration of the Board of Directors, Executive Board, Fiscal Council and board
committees.

(i) Pro-rata share of each component to the aggregate remuneration for 2011.

Remuneration Policy of Board of Directors, Executive Board, Fiscal Council and Committees
Board of Directors
Fixed remuneration: 100%
Executive Board
Variable remuneration: 58%
Fiscal Council

19fmarf2012 88
Remuneration paid by the Company to the Board of Directors, Executive Board, and Fiscal Council in
2011:

2011
Board of
Directors Fiscal Council
Board of
Executive
Offcers Total
Number of members * 20.3 10.0 7.8 38.1
Annual fixed compensation 1,105 533 5,224 6,862
Salary or pro-labore 1,105 533 4,475 6,113
Direct and indirect benefits - - 749 749
Variable compensation - - 7,298 7,298
Bonus - - 1,803 1,803
Other (ILP) - - 5,495 5,495
Total compensation per body 1,105 533 12,522 14,160
Consolidated

Average annual remuneration due to the Board of Directors, Executive Board, and Fiscal Council in
2011:

2011
Board of
Directors Fiscal Council
Board of
Executive
Offcers
Number of members * 20.3 10.0 7.8
Highest individual compensation 99 77 2,825
Lowest individual compensation 20 27 201
Average individual compensation 55 53 1,519
Parent Company

*number of members calculated through the periods weighted average

25. SHAREHOLDERS EQUITY

a) Capital Stock

There are 203,934,060 non-par and book-entry common shares of Light S.A. (203,934,060 on
December 31
st
, 2010) as of December 31
st
, 2011 recorded as Capital Stock in the total amount of
R$2,225,822 (R$2,225,822 on December 31
st
, 2010), as follows:

Number of Shares % Interest Number of Shares % Interest
Controlling Group 106,304,597 52.12 106,304,597 52.12
RME Rio Minas Energia Participaes S.A. 26,576,150 13.03 26,576,150 13.03
Companhia Energtica de Minas Gerais S.A. 53,152,298 26.06 53,152,298 26.06
Luce Empreendimentos e Participaes S.A. 26,576,149 13.03 26,576,149 13.03
Other 97,629,463 47.88 97,629,463 47.88
BNDES Participaes S.A. - BNDESPAR 30,631,782 15.03 30,631,782 15.03
Public 66,997,681 32.85 66,997,681 32.85
Overall Total 203,934,060 100 203,934,060 100
SHAREHOLDERS
12/31/2011 12/31/2010

19fmarf2012 89

Light S.A. is authorized to increase its capital up to the limit of 203,965,072 common shares through
resolution of the Board of Directors, regardless of amendments to the bylaws. However, this increase is
to occur exclusively upon the exercise of the warrants issued, strictly pursuant to the conditions of the
warrants (Bylaws, Article 5, Paragraph 2).

b) Profit reserve

Light S.A. has two profit reserves, as follows:

- A Statutory Reserve set at the rate of 5% of the net income for each year, pursuant to the applicable
laws.

- A Retained Earnings reserve, which is set against the net income for the year that remains after the
appropriations in a capital budget have been made, as approved by the Company's Board of Directors
subject to shareholder approval at general meeting.

26. DIVIDENDS AND INTEREST ON EQUITY

The Company's bylaws provides for distribution of a minimum mandatory dividend at the rate of 25%
of the net income for the year, adjusted pursuant to Article 202 of Law N
o.
6,404 dated December 15
th
,
1976.

The payment of interest on equity is included in the calculation of the minimum mandatory dividends.

Article 9 of Law N
o
. 9,249 of December 26
th
, 1995, allows deductibility for income tax and social
contribution purposes, of interest on equity paid to shareholders, calculated based on the variation of
the Long-Term Interest Rates -TJLP, restricted to 50% of the income for the year.

The Board of Directors unanimously approved the distribution of interim dividends to shareholders, in
the amount of R$118,282, which were paid on December 28
th
, 2011 and the payment of Interest on
Equity to shareholders, in the gross amount of R$86,754, levying 15% Withholding Income Tax to be
paid by April 30, 2012, totaling a gross amount of R$205,036.

The Management proposes the distribution of additional dividends to shareholders of R$181,501 of
which R$90,079 refer to the income for the year and R$91,422 refer to profit reserves, to be resolved
at the Annual Shareholders Meeting on April 11, 2012.

The dividends proposed at year-end were calculated as follows:
Calculation of minimum mandatory dividends 12/31/2011
Net income for the year 310,647
Legal reserve (15,532)
Calculation basis of minimum mandatory dividends 295,115
Minimum mandatory dividends (25%) 73,779
Dividends and interest on equity declared on 12/28/2011 above minimum mandatory dividend 131,257
Additional dividends proposed 181,501
TOTAL DIVIDENDS 386,537

19fmarf2012 90

Below, the breakdown of payable dividends and interest on equity balances:

Balance on December 31, 2010 136,598
Dividends and interest on equity
Additional proposed dividends resolved on Annual Shareholders' Meeting of 4/28/2011 214,381
Declared on 12/28/2011 205,036
Withholding income tax - IRRF (13,013)
Paid in period (469,261)
Balance on December 31, 2011 73,741

27. PROFIT SHARING

The Company's Profit Sharing Plan implemented in 1997 spans the whole corporation and is
essentially contingent upon consolidated net income and EBITDA results of the Company. Payment of
the profit-sharing amount comprises two portions, a fixed and a variable one. The Program has evolved
over the years in order to elicit increased employee commitment to improving the Company's and its
subsidiaries' bottom-lines.

As of December 31
st
, 2011 the balance of the provision for profit sharing was R$20,991 (R$15,308 on
December 31
st
, 2010), with payment expected to take place in April 2012.

28. EARNINGS PER SHARE

Pursuant to the requirements of CPC 41 and the IAS 33 (Earnings per Share), the statement below
reconciles the income for the year with the amounts used to calculated the basic and diluted earnings
per share.

12/31/2011 12/31/2010
NUMERATOR
Net income for the period 310,647 575,150
DENOMINATOR
Weighted average number of common shares 203,934,060 203,934,060
Basic and diluted earnings per common share in R$ 1.52 2.82
Consolidated

There were no significant differences between the basic and diluted earnings per share as of December
31
st
, 2011 and 2010.

29. NET OPERATING REVENUE BREAKDOWN

19fmarf2012 91

2011 2010
Supply (Note 29) 8,805,815 8,432,859
Leases, rents and others 32,893 36,606
Revenue from network usage 709,000 741,454
Revenue from consrtruction 794,649 552,831
Revenue from services rendered 72,759 71,055
Taxed service fee 3,814 2,186
GROSS REVENUE 10,418,930 9,836,991
Billed Supply ICMS (2,264,173) (2,219,444)
PIS / COFINS (539,186) (535,303)
Other (3,836) (3,685)
REVENUE TAXES (2,807,195) (2,758,432)
Fuel Consumption Account - CCC (305,664) (220,500)
Energy Development Account - CDE (231,192) (206,184)
Global Reversal Reserve - RGR (34,710) (57,654)
Energy Research Company - EPE (6,423) (6,146)
National Technological Development Fund - FNDCT (12,847) (12,295)
Energy Efficiency Program - PEE (28,796) (27,545)
Research and Development -R&D (12,846) (14,481)
Other charges - ex-isolated (17,195) (7,975)
Other charges - Proinfa (17,277) (17,195)
CONSUMER CHARGES (666,950) (569,975)
TOTAL DEDUCTIONS (3,474,145) (3,328,407)
NET REVENUE 6,944,785 6,508,584
Consolidated

30. ELECTRIC POWER SUPPLY

2011 2010 2011 2010 2011 2010
Residential 3,814,841 3,759,911 8,418 8,243 2,870,255 2,746,002
Industrial 10,992 11,403 1,731 1,717 392,388 335,307
Commerce, services and other 277,671 275,268 6,310 6,157 1,923,587 1,866,809
Rural 11,361 11,185 53 51 10,855 9,500
Public sector 10,765 10,451 1,495 1,441 485,970 449,051
Public lighting 743 726 675 677 105,616 103,316
Public utility 1,528 1,319 1,109 1,095 230,943 223,958
Own consumption 394 328 85 78 - -
Billed sales 4,128,295 4,070,591 19,877 19,459 6,019,614 5,733,943
ICMS (State VAT) - - - - 2,237,459 2,194,042
Unbilled sales - - - - 17,815 (8,830)
TOTAL SUPPLY
(3)
4,128,295 4,070,591 19,877 19,459 8,274,888 7,919,155
Electric power auction - - 4,806 4,719 476,420 429,371
Short-term energy - - 2,046 1,565 54,507 84,333
TOTAL SUPPLY - - 6,852 6,284 530,927 513,704
OVERALL TOTAL 4,128,295 4,070,591 26,729 25,743 8,805,815 8,432,859
(1) Unaudited by independent auditors
(2) Number of billed sales in December 2011, with and without consumption
(3) Light SESA
Consolidated
Number of billed sales
(1) (2)
GWh
(1)
R$

19fmarf2012 92
31. OPERATING COSTS AND EXPENSES

Nature of the expense Electric Power Operation Selling General and Adm
Other Operating
Revenues (Expenses)
Personnel and management - (108,808) (13,856) (124,670) - (247,334) (265,754)
Material - (21,377) (168) (4,131) - (25,676) (33,490)
Outsourced services - (197,416) (35,995) (175,797) - (409,208) (360,426)
Electricity purchased for resale (Note 32) (3,828,031) - - - - (3,828,031) (3,392,464)
Depreciation and amortization - (326,681) (4,982) (32,891) - (364,554) (352,462)
Allowance for doubtful accounts - - (251,313) - - (251,313) (254,785)
Provision for contingencies - - - (49,328) - (49,328) 37,100
Cost of Construction - (794,649) - - - (794,649) (552,831)
Other - (13,333) (1,660) (80,639) (5,861) (101,493) (91,459)
Total (3,828,031) (1,462,264) (307,974) (467,456) (5,861) (6,071,586) (5,266,571)
Consolidated
Cost of Service
2011 2010
Operating Expenses

32. ELECTRIC POWER PURCHASED FOR RESALE

2011 2010 2011 2010
Connection charges - - (28,233) (19,968)
Spot market energy 776 1,075 (42,291) (25,234)
Network usage charges - - (445,869) (419,401)
UTE Norte Fluminense 6,351 6,351 (878,556) (806,846)
Itaipu - binational 5,385 5,430 (494,918) (510,033)
Energy transportation - Itaipu - - (41,545) (38,708)
National Electric System Operator (O.N.S.) - - (17,813) (17,752)
PROINFA 529 532 (88,635) (83,501)
ESS - - (133,708) (128,976)
Other contracts and electric power auctions 16,451 14,578 (1,656,463) (1,342,045)
Total 29,492 27,966 (3,828,031) (3,392,464)
Consolidated
GWh R$

33. FINANCIAL RESULT

2011 2010 2011 2010
REVENUES
Interest and variation on debts paid by installments - - 88,458 75,546
Income from investments 6,559 2,003 48,428 59,977
Swap operations - - 5,635 298
Income from loan agreements 1,626 -
Other financial income 2,090 590 33,396 37,402
10,275 2,593 175,917 173,223
EXPENSES
Restatement of provision for contingencies - - (25,696) (44,498)
Expenses with tax liabilities (9,062) - (40,643) 14,135
Debt charges - - (499,703) (391,273)
Swap operations - - (1,611) (4,612)
Other financial expenses (16) (65) (65,925) (66,369)
(9,078) (65) (633,578) (492,617)
FINANCIAL RESULT 1,197 2,528 (457,661) (319,394)
Consolidated Parent Company

34. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The statement below reconciles the carrying and fair values of assets and liabilities related to our
financial instruments:

19fmarf2012 93
ASSETS Book value Fair value Book value Fair value
Cash and cash equivalents (Note 5) 55,057 55,057 38,295 38,295
Other receivables (Note 12) 13,763 13,763 23,860 23,860
Total 68,820 68,820 62,155 62,155
LIABILITIES
Suppliers (Note 16) 197 197 280 280
Total 197 197 280 280
Parent Company
12/31/2010 12/31/2011

ASSETS Book value Fair value Book value Fair value
Cash and cash equivalents (Note 5) 772,548 772,548 514,109 514,109
Marketable Securities (Note 6) 8,171 8,171 11,122 11,122
Concessionaires and permissionaires (Note 7) 1,682,158 1,682,158 1,634,965 1,634,965
Swaps 4,555 4,555 211 211
Concession financial assets (Note 11) 656,473 656,473 469,030 469,030
Other receivables (Note 12) 181,529 181,529 160,838 160,838
Total 3,305,434 3,305,434 2,790,275 2,790,275
LIABILITIES
Suppliers (Note 16) 757,158 757,158 658,421 658,421
Loans and financing (Note 17) 2,133,673 2,074,450 1,335,183 1,342,054
Debentures (Note 18) 1,969,973 1,970,360 1,088,402 1,088,402
Swaps (Note 17) 1,763 1,763 5,295 5,295
Total 4,862,567 4,803,731 3,087,301 3,094,172
Consolidated
12/31/2011 12/31/2010

In compliance with CVM Rule N
o.
475/2008 and CVM Resolution N
o
. 604/2009, which revoked
Resolution N
o
. 566/2008, the description of accounting balances and fair values of financial
instruments stated in the balance sheet as of December 31
st
, 2011 are identified as follows:
Cash and cash equivalents
Financial investments in bank deposit certificates are measured at their fair value duly on the
balance sheet date.
Marketable securities
Financial investments in bank deposit certificates are measured at their fair value on the balance
sheet date.
Consumers, concessionaries and permissionaires (clients)
These are classified as loans and receivables, measured at the amortized cost, being recorded at
their original values and subject to a provision for losses and adjustments to their present values,
where applicable.

Financial concession assets
These are classified as loans and receivables, measured at the amortized cost, being recorded at
their original values and subject to a provision for losses and adjustments to their present values,
where applicable.

19fmarf2012 9+
Suppliers
Accounts payable to suppliers of materials and services required in the operations of the Company,
the amounts of which are known or easily determinable, added, where applicable, of relevant
charges, escalation and/or exchange costs incurred as of the balance sheet date.

These balances are classified as financial liability not measured at fair value and were
recognized at their amortized cost, which is not significantly different from their fair value.
Loans, borrowings and debentures
These are measured by the restated amortized cost method. Fair value was calculated at interest
rates applicable to instruments with similar nature, maturities and risks, or based on market
quotations of these securities. The fair value for BNDES financing is identical to the accounting
balance, since there are no similar instruments, with comparable maturities and interest rates.
These financial instruments are classified as financial liabilities not measured at the fair value.
Swaps
These are measured at fair value. A determination of fair value used available information on the
market and usual pricing methodology: the face value (notional) evaluation for long position (in
U.S. dollars) until maturity date and discounted at present value of clean coupon rates, published in
bulletins of Securities, Commodities and Futures Exchange BM&FBovespa.

It is worth mentioning that estimated fair value of financial assets and liabilities was determined by
means of information available on the market and appropriate valuation methodologies.
Nevertheless, meaningful judgment was required when interpreting market data to produce the
most appropriate fair value estimate. As a result, estimates used and presented below do not
necessarily indicate the amounts that may be realized in current exchange market.

a) Financial Instruments by category:

Fair value Fair value
Loans though Loans through
ASSETS and receivables profit or loss Total and receivables profit or loss Total
Cash and cash equivalents (Note 5) 152 54,905 55,057 81,138 691,410 772,548
Marketable Securities (Note 6) - - - - 8,171 8,171
Concessionaires and permissionaires (Note 7) - - - 1,682,158 - 1,682,158
Swaps - - - - 4,555 4,555
Concession financial assets (Note 11) - - - 656,473 - 656,473
Other receivables (Note 12) 13,763 - 13,763 181,529 - 181,529
Total 13,915 54,905 68,820 2,601,298 704,136 3,305,434
Amortized though Amortized though
LIABILITIES cost profit or loss Total cost profit or loss Total
Suppliers (Note 16) 197 - 197 757,158 - 757,158
Loans and financing (Note 17) - - - 2,133,673 - 2,133,673
Debentures (Note 18) - - - 1,969,973 - 1,969,973
Swaps (Note 17) - - - - 1,763 1,763
Total 197 - 197 4,860,804 1,763 4,862,567
Consolidated
12/31/2011
Parent Company
12/31/2011

19fmarf2012 95
Loans though Loans through
and receivables profit or loss Total and receivables profit or loss Total
ASSETS
Cash and cash equivalents (Note 5) 386 37,909 38,295 36,028 478,081 514,109
Marketable Securities (Note 6) - - - - 11,122 11,122
Concessionaires and permissionaires (Note 7) - - - 1,634,965 - 1,634,965
Swaps - - - - 211 211
Concession financial assets (Note 11) - - - 469,030 - 469,030
Other receivables (Note 12) 23,860 - 23,860 152,973 - 152,973
24,246 37,909 62,155 2,292,996 489,414 2,782,410
Amortized though Amortized though
cost profit or loss Total cost profit or loss Total
LIABILITIES
Suppliers (Note 16) 280 - 280 658,421 - 658,421
Loans and financing (Note 17) - - - 1,335,183 - 1,335,183
Debentures (Note 18) - - - 1,088,402 - 1,088,402
Swaps (Note 17) - - - - 5,295 5,295
280 - 280 3,082,006 5,295 3,087,301
12/31/2010 12/31/2010

b) Policy concerning derivative instruments

The Company has a policy of using derivative instruments which has been approved by its Board of
Directors. According to this policy, the debt service (principal plus interest and charges) denominated
in foreign currency maturing within 24 months is to be hedged, except no speculative transaction is
allowed, whether using derivatives or any other risky asset.

In line with the policy standards, the Company does not have any forward contracts, options,
swaptions, callable swaps, flexible options, derivatives embedded in other products, derivative-
structured transactions and so-called exotic derivatives. Furthermore, the statement above denotes
that the Company use cashless exchange rate swaps (US$ vs. CDI), of which the Notional Contract
Value is equal to the amount of the debt service denominated in foreign currency maturing in 24
months.

c) Risk management and goals achieved

Management of derivative instruments is achieved through operating strategies with a view to
liquidity, profitability and safety. Our control policy consists of ongoing enforcement of policy
standards concerning the use of derivative instruments, as well as continued monitoring of agreed upon
rates versus market rates.

d) Market Risk

During the normal course of its businesses, the Company and its subsidiaries are exposed to the market
risks related to currency variations and interest rates, as evidenced in the chart below:

Debt breakdown (excluding financial charges):

19fmarf2012 96
R$ % R$ %
USD 144,412 3.5 73,131 3.0
EUR 85,191 2.1 - -
Foreign currency (current and noncurrent) 229,603 5.6 73,131 3.0
CDI 2,538,473 61.9 1,618,316 66.8
TJLP 1,206,499 18.7 624,457 25.8
Other 129,071 13.8 107,681 4.4
Local currency (current and noncurrent) 3,874,043 94.4 2,350,454 97.0
Overall total (current and noncurrent) 4,103,646 100 2,423,585 100
Consolidated
12/31/2011 12/31/2010

On December 31
st
, 2011, according to the chart above, the foreign currency-denominated debt is
R$229,603, or 5.6% of total debt (R$73,131, corresponding to 3.0% on December 31
st
, 2010).

Financial derivative instruments were contracted for the amount of foreign currency-denominated debt
service to expire within 24 months, in the swap modality, whose notional value on December 31
st
,
2011 stood at US$64,502 and 34,969, according to the policy for utilization of derivative instruments
approved by the Board of Directors. Thus, if we deduct this amount from total foreign currency-
denominated debt, the foreign exchange exposure represents 0.57% of total debt (1.72% on December
31
st
, 2010).

Below, we provide a few considerations and analyses on risk factors impacting on business of Light
Groups companies:

Currency risk

Considering that a portion of the subsidiary Light SESAs loans and financing is denominated in
foreign currency, the company uses derivative financial instruments (swap operations) to hedge against
service associated with these debts (principal plus interest and commissions) to expire within 24
months in addition to the swap of previously mentioned rates.

Derivative operations, comprising currency swaps and interest, the latter reported below, resulted in an
R$4,024 gain in 2011 (loss of R$4,314 in 2010). The net amount of swap operations as of December
31
st
, 2011, considering the fair value, is positive at R$2,792 (negative at R$5,084 on December 31
st
,
2010), as shown below:

Currency Swap
Institution Light's Receivable Light's Payable Starting Date Maturity Date
Notional Value
Contracted
(US$)
Fair Value
Dec/11
(R$) Assets
Fair Value
Dec/11
(R$) Liabilities
Fair Value
Dec/11
(R$) Balance
Banco Itau US$+2.79% 100% CDI 10/9/2009 10/11/2011 5,273 46 - 46
Citibank US$+3.20% 100% CDI 3/10/2010 3/12/2012 64 - (11) (11)
Banco Itau US$+2.82% 100% CDI 4/12/2010 4/11/2012 5,010 - (773) (773)
Bradesco US$+2.50% 100% CDI 9/10/2010 9/12/2012 63 - (3) (3)
HSBC US$+2.20% 100% CDI 10/11/2010 10/9/2012 3,211 2 - 2
Bradesco US$+2.72% 100% CDI 3/10/2011 3/12/2013 61 6 - 6
HSBC US$+3.58% 100% CDI 4/12/2011 4/10/2013 3,064 693 - 693
HSBC US$+2.95% 100% CDI 9/12/2011 9/12/2013 58 9 - 9
Merilin Lynch Libor+2.5294% 100%CDI+0.65% 11/10/2011 11/10/2016 50,000 3,609 - 3,609
Total 66,804 4,365 (787) 3,578

19fmarf2012 97

Currency Swap
Notional Value
Contracted
(EUR)
Fair Value
Dec/11
(R$) Assets
Fair Value
Dec/11
(R$) Liabilities
Fair Value
Dec/11
(R$) Balance
BNP Euro+4.6823% 100%CDI+1.30% 10/21/2011 10/21/2014 34,969 - (976) (976)
Totais 34,969 - (976) (976)

The amount recorded was measured by its fair value on December 31
st
, 2011. All operations with
derivative financial instruments are registered in clearing houses for the custody and financial
settlement of securities and there is no margin deposited in guarantee. Operations have no initial cost.

Below, the sensitivity analysis for foreign exchange rates fluctuations, showing eventual impacts on
financial result of the Company and its subsidiaries.

The methodology used in the Probable Scenario was to consider the best estimate for the foreign
exchange rates on December 31
st
, 2012 based on external sources of forward exchange rates. It is
worth highlighting that, as this refers to a sensitivity analysis of the impact on the 2012 financial result,
debt balances on December 31
st
, 2011 were considered. It is worth mentioning that the behavior of
debt and derivatives balances will observe their respective contracts, and the balance of temporary cash
investments will fluctuate according to the need or available funds of the Company and its subsidiaries.

Exchange Rate Sensitivity Analysis:

Operation Risk Scenario (II) Scenario (III)
FINANCIAL LIABILITIES (11,812) (13,413) (15,012)
Par Bond USD (4,245) (4,820) (5,395)
Discount Bond USD (648) (736) (823)
C. Bond USD (1,203) (1,366) (1,529)
Debit. Conv. USD (46) (53) (59)
Bib USD (26) (30) (33)
Merril Lynch USD (2,358) (2,677) (2,997)
BNP (EURO) USD (3,286) (3,731) (4,176)
DERIVATIVES USD
Swaps 30,590 79,997 136,831
TOTAL 18,778 66,584 121,819
Reference for financial assets and liabilities +25% +50%
R$/US$ exchange rate (end of the period) 1.818 2.273 2.727
R$
Scenario (I):
Probable

With the chart above, it is possible to identify that the partial hedge against foreign currency-
denominated debt (only limited to debt service to expire within 24 months), as when R$/US$ quote
increases, liabilities financial expense also increases but financial revenues of derivatives also partially
offset this negative impact and vice-versa. Thus, cash is partially hedged thanks to the derivatives
policy of the Company and its subsidiaries.

Interest rate risk

This risk derives from impact of interest rates fluctuation not only over financial expense associated
with loans and financing of the Company, but also over financial revenues deriving from temporary
cash investments. The policy for utilization of derivatives approved by the Board of Directors does not
comprise the contracting of instruments against such risk. Nevertheless, the Company continuously

19fmarf2012 98
monitors interest rates so that to evaluate eventual need of contracting derivatives to hedge against
interest rates volatility risk.

As of December 31
st
, 2011, the interest rate swap operation associated with the maturity of Bradesco
CCB with notional value of R$150,000, duly authorized by the Management, stated a gain of R$190,
considering the fair value, according to the following table:

Interest rate swap
Notional Value
Contracted
(R$ thousand)
Fair Value
Dec/11
(R$) Assets
Fair Value
Dec/11
(R$) Liabilities
Fair Value
Dec/11
(R$) Balance
HSBC
101.9%CDI+(TJLP-
6%)
CDI+0.85% 10/18/2010 10/18/2017 150,000 190 - 190
Totais 150,000 190 - 190

Below, the sensitivity analysis for interest rates fluctuations, showing possible impacts on the financial
result of the Company.

The methodology used in the Probable Scenario was to consider the best estimate for the interest
rates on December 31
st
, 2012 based on external sources of future interest rates. It is worth highlighting
that, as this refers to a sensitivity analysis of the impact on the 2012 financial result, debt and
investment balances on December 31
st
, 2011 were considered. It is worth mentioning that the behavior
of debt and derivatives balances will observe their respective contracts, and the balance of investments
will fluctuate according to the need or available funds of the Company.

Risk of Interest Rate Increase:

Operation Risk Scenario (II) Scenario (III)
FINANCIAL ASSETS
Financial investments CDI 74,168 92,710 111,253
FINANCIAL LIABILITIES (391,327) (471,434) (551,542)
Debentures 5th issue CDI (81,496) (99,128) (116,759)
CCB Bradesco CDI (46,997) (57,776) (68,556)
CCB Bco Santander CDI (8,826) (10,753) (12,680)
Debentures 4th issue TJLP (9) (10) (11)
FINEM BNDES 2006-2008 TJLP (24,337) (27,945) (31,552)
FINEM BNDES 2009-2010 TJLP (14,042) (16,515) (18,990)
FINEM BNDES 2009-2010 TJLP+1 TJLP (15,746) (18,245) (20,743)
PROESCO TJLP (596) (707) (817)
Debentures 7th issue CDI (71,466) (87,135) (102,804)
Debentures 1st issue Light Energia CDI (19,048) (23,187) (27,327)
Debentures 2nd issue Light Energia CDI (45,866) (56,079) (66,292)
BNDES Light Ger TJLP (8,044) (9,565) (11,087)
BNDES - Capex 11/12 Subcred.2 TJLP (8,033) (9,582) (11,132)
DERIVATIVES
Currency swaps CDI 30,590 5,032 (14,522)
Interest rate swaps CDI 796 716 631
Interest rate swaps TJLP 796 (985) (2,763)
TOTAL (284,977) (373,961) (456,943)
Reference for FINANCIAL ASSETS +25% +50%
CDI (% end of the year) 9.50% 11.88% 14.25%
Reference for FINANCIAL LIABILITIES +25% +50%
CDI (% end of the year) 9.50% 11.88% 14.25%
TJLP (% end of the year) 6.00% 7.61% 9.13%
R$
Scenario (I):
Probable

19fmarf2012 99
Credit risk

It refers to the Company eventually suffering losses deriving from default of counterparties or
financial institutions depositary of funds or temporary cash investments. To mitigate these risks, the
Company uses all collection tools allowed by the regulatory body, such as disconnection for
delinquency, debit losses and permanent monitoring and negotiation of outstanding positions.

Item "a" of this note contains a summary of the financial instruments broken down by category,
including the Company's maximum credit risk.

Concerning financial institutions, the Company only carries out low-risk operations, classified by
rating agencies. The Company has a policy of not concentrating its portfolio in certain financial
institution. Therefore, the policys principle is to control the portfolio concentration through limits
imposed to the Groups and monitoring financial institutions through their shareholders equity and
ratings.

Through its policy, the Company will be able to invest in fixed income products and Interbank Deposit
Rate (CDI)-indexed post-fixed income and post-fixed government bonds.

The definition of the groups for allocation of resources is described below, as well as the percentage of
current share in the Companys portfolio:

Group 1 federal banks; shareholders equity: not applicable; minimum rating: Not applicable;
percentage in the portfolio: 2.6%.
Group 2 Financial Institutions with Shareholders Equity higher than or equal to 7 billion;
Minimum Rating: AA (S&P and Fitch) or Aaa (Moodys). Percentage in the portfolio: 86.2%.
Group 3 Financial institutions with Shareholders Equity between 1 to 7 billion; Minimum
Rating: AA (S&P and Fitch) or Aaa (Moody's). Percentage in the Portfolio: 10.0%.
Group 4 Financial Institutions with Shareholders Equity between 500 million and 1 billion;
Minimum Rating: A (S&P and Fitch) or A2 (Moodys). Percentage in the portfolio: 1.1%
Group 5 - Only Financial Institutions with restricted court deposits. Percentage in the portfolio:
0.1%.

Liquidity risk

Liquidity risk relates to the Company's ability to settle its liabilities. In order to determine the ability to
satisfactorily meet its financial liabilities, the streams of maturities for funds raised and other liabilities
are reported with the Company's statements. Further information on the loans can be found in detail in
Notes 17 and 18.

The Company has raised funds through its operations, from financial market transactions and from
affiliate companies. These funds are allocated primarily to support its investment plan and in
managing its cash for working capital and liability management purposes.

Management of financial investments focuses on short-term instruments in an attempt to achieve
maximum liquidity and satisfy our expenditure requirements.

The Company's cash-generation ability and low volatility concerning receivables and accounts payable
over the year provide cash flow stability and thus reduce its liquidity exposure.

19fmarf2012 100
The realization flow concerning future liabilities as per the relevant terms and conditions is
summarized in the statement below:

Consolidated
Interest rate instruments: 1 to 3 months 3 months to 1 year 1 to 5 years More than 5 years Total
Floating
Loans, financing and debentures 105,147 503,969 2,892,189 723,814 4,225,119
Fixed rate
Loans, financing and debentures 3,490 21,523 340,851 193,376 559,240

a) Capital Management

The Company manages its capital with the purpose of safeguarding its capacity to continuously offer
return to shareholders and benefits to other stakeholders, in addition to maintaining the ideal capital
structure to reduce costs.

In order to maintain or adjust its capital structure, the Company either reviews the dividend payment
policy, returns capital to shareholders or issues new shares and sells assets to reduce the indebtedness
level, for instance.

b) Hierarchical Fair Value

There are three types of classification levels for the fair value of financial instruments. This
hierarchy prioritizes unadjusted prices quoted in an active market for financial assets or liabilities.
The classification of hierarchical levels can be presented as follows:

Level 1 - Data originating from an active market (unadjusted quoted price) that can be accessed
on a daily basis, including on the date of fair value measurement.

Level 2 - Different data originating from the active market (unadjusted quoted price) included
in Level 1, extracted from a pricing model based on data observable in the market.

Level 3 - Data extracted from a pricing model based on data that are not observable in the
market.

Identical Similar Without active
12/31/2011 markets markets market
ASSETS Level 1 Level 2 Level 3
Cash and cash equivalents (Note 5) 691,410 - 691,410 -
Marketable Securities (Note 6) 8,171 - 8,171 -
Swaps 4,555 - 4,555 -
Total 704,136 - 704,136 -
LIABILITIES
Swaps (Note 17) 1,763 - 1,763 -
Total 1,763 - 1,763 -
Consolidated
Measurement of Fair Value

19fmarf2012 101
Identical Similar Without active
markets markets market
12/31/2010 Level 1 Level 2 Level 3
ASSETS
Cash and cash equivalents (Note 5) 478,081 - 478,081 -
Marketable Securities (Note 6) 11,122 - 11,122 -
Swaps 211 - 211 -
489,414 - 489,414 -
LIABILITIES
Swaps (Note 17) 5,295 - 5,295 -
5,295 - 5,295 -
Consolidated
Measurement of Fair Value

No financial instrument classified as Level 1 or 3 was observed in the analysis period, and there was
no transfer from one level to another in the same period.

35. INSURANCE

On December 31
st
, 2011, the Company had insurances covering its main assets, including:

Operational Risk Insurance - it covers damages caused to hydroelectric and thermoelectric power
plants, including, but not limited to its machinery, steam turbines, gas turbines, generators, boilers,
transformers, channels, tunnels, dams, spillway, civil works, offices and warehouses. All assets are
insured under the Operational Risks modality, with an All Risks coverage, including the transmission
and distribution lines up to 1,000 feet from generation site.

Directors and Officers Liability Insurance (D&O) - It has the purpose of protecting Executives from
losses and damages resulting from the performance of their activities inherent to the position as
Directors, Officers and Managers of the Company.

General and Civil Liability Insurance - focuses on the payment of indemnity if the Company is deemed
civilly liable by a final and unappealable court decision or deal authorized by the insurance company,
in relation to remedies for property damage and involuntary personal injury caused to third parties and
also those related to pollution, contamination, sudden and/or accidental leakage.

Financial Guarantee Insurance Energy Trading and Judicial. Property Insurance Comprehensive
Business (Leased Properties). International Transport Insurance Imports, Corporate Travel Insurance
and Personal Insurance.

The assumptions of risks adopted, given their nature, are not included in the scope of an audit firm,
accordingly, they were not audited by independent auditors.

Below, a summarized breakdown of main insurance policies considered by Management:

Amount Gross Premium
RISKS (thousand) From To Insured (including cost of insurance policy + IOF)
Directors & Officers (D&O) 8/10/2011 8/10/2012 US$20.000 US$121
Civil and general liabilities 9/25/2011 9/25/2012 R$20,000 R$902
Operating risks* 10/31/2011 10/31/2012 R$3,673,828 R$1,539
* Maximum Limit of Liability (LMR) is R$300,000 - Indemnity.
* Total Value in Risk of R$3,673,828
Effective Term

19fmarf2012 102
36. ENVIRONMENTAL ISSUES

Amongst the most relevant initiatives taken by the Company to ensure environmental quality, the
following stand out:

Greenhouse Gas (GHG) Emissions (1): The Company started a survey on greenhouse gas emissions
related to its activities in 2006. Based on this survey, the Company established an annual target for
GHG emission reduction, which has been reached and even surpassed in view of the efforts to make
processes more efficient (with lower waste and gas generation).

Waste Management (1): Specialized companies are contracted to ensure the correct destination of
the waste generated by the Company, including hazardous and recyclable waste. In the maintenance
of Power Station plants, for example, we had a 60% reduction in waste disposal expenses with the
engagement of a company specialized in providing washable and reusable towels to replace rags and
cloths used only once. As for the activities of the Distribution Station, the Company has an
agreement that guarantees the reuse of unused equipment removed from the electric power network,
allowing for a significant reduction in the consumption of natural resources and waste generation.

Environmental Management System (EMS) and Integrated Management System (IMS) (1): The
Company currently has 281 sites certified by ISO 14001, a standard that establishes Environmental
Management criteria. Light Energia has a triple certification Quality, Health & Safety and
Environment for the whole Generation Estate in operation. The undertakings certified under the
Environmental Management System (EMS) include electric power sub-stations, 138-kV overhead
distribution lines, commercial agencies and hydroelectric power plants, among others. The
Company's EMS allows for the management of environmental aspects and impacts deriving from the
activities listed, as well as conformity with the applicable legal requirements, awareness and
environmental training of employees, among others. The maintenance of such a system requires
various investments to avoid possible non-compliance.

Program to Recover Degraded Areas (1): Started in 1992, the programs annual goals are to plant
trees in an area of 50 hectares and to maintain 300 hectares of planted areas around Lights
reservoirs, directly contributing to the local and regional biodiversity. In 2011, the Company
exceeded these goals by planting trees in an area of 56 hectares and maintaining 353 hectares of
reforested areas and remaining areas of the Atlantic Rainforest.

Macrophyte Handling (1): The water vegetation formed in the reservoirs can cause significant
problems in power generation, in the control of floods and the multiple uses of water, which requires
large investments to control their population growth. In view of this liability, usual in the electricity
industry, over the past 13 years, the Company has been researching with the university UNESP
Jaboticabal, alternatives for a sustainable biomass handling at these plants which is daily removed
from Santana and Vigrio reservoirs.

One of these alternatives would be to transform this biomass into an environmental asset, through
composting, which results in a nutrient compound, such as Nitrogen and Phosphorus highly effective
in organic fertilizing of its reforestation areas.

Current measure adopted is the process of environmental licensing to implement a composting plant
in the municipality of Pira, an innovating activity in this region, also creating environmental
education opportunities, as people will be able to visit the site.

19fmarf2012 103
Social-environmental responsibility (1): The Company takes education very seriously, and for many
years it has been financing primary and technical environmental education projects and schools in
cities of its concession area. The Social-environmental inclusion project is one of these initiatives, in
a partnership with the Education Department of Pira-RJ and researchers from UNESP, UNIRIO,
UFRRJ, FIOCRUZ and CETAS/IBAMA (Seropdica-RJ), aiming to provide teachers, students and
employees of the Escola de Lajes school, Company employees and the community with opportunities
to learn about local environmental resources available, as well as qualify multipliers of sustainable
initiatives, focusing on the necessary environmental care to prevent water pollution and global
warming.

In addition to this initiative, we maintain the Archeological and Environmental Park of So Joo
Marcos, which is Lights contribution in partnership with the State government of Rio de Janeiro for
the cultural advancement of the region. It is a never-ending cultural and natural site, which offers an
educational program concerned with child and youth public. In a playful and educational way, themes
such as Environment, History and Cultural Heritage are presented. The site is located in an
environmental preservation area of the Atlantic Forest. In addition to the visit perimeter, the park has
930,000 m
2
of forest and water areas.

These initiatives have helped Light remain listed in Bovespa's corporate sustainability index (ISE)
since 2007.

(1) Unaudited by independent auditors.

37. SEGMENT REPORTING

Segment reporting was prepared according to CPC 22 (Information by Segment), equivalent to IFRS
8, and is reported in relation to the business of the Company, identified based on their management
structure and internal management information.
The Company's Management considers the following segments: power distribution, power generation,
power trading and others (including the holding). The Company is segmented according to its
operation, which has different risks and compensation.
Segment information for the years ended December 31
st
, 2011 and December 31
st
, 2010 are presented
below:

Consolidated
Distribution Generation Trading Other Eliminations 12/31/2011
Current assets 2,401,047 259,582 61,432 153,432 (148,618) 2,726,875
Long-term assets 2,257,722 5,847 31,050 273 (155,294) 2,139,598
Investments 16,374 36,231 - 3,146,008 (3,144,527) 54,086
Property, plant and equipment 209,720 1,767,482 6,589 2,042 - 1,985,833
Intangible assets 3,814,959 258,192 - 3,598 (1,481) 4,075,268
Current liabilities 1,802,777 216,638 28,302 88,029 (148,618) 1,987,128
Non-current liabilities 4,582,870 1,338,937 6,645 - (155,294) 5,773,158
Shareholders' equity 2,314,175 771,759 64,124 3,217,324 (3,146,008) 3,221,374

19fmarf2012 10+
Consolidated
Distribution Generation Trading Other Eliminations 12/31/2010
Current assets 2,200,937 166,428 61,605 114,245 (165,047) 2,378,168
Long-term assets 2,152,886 1,017 20,409 195 (218,002) 1,956,505
Investments 16,374 149 - 3,356,792 (3,355,729) 17,586
Property, plant and equipment 189,015 1,433,849 5,039 990 - 1,628,893
Intangible assets 3,478,653 131,766 - 3,353 - 3,613,772
Current liabilities 1,954,713 217,644 39,398 140,045 (165,047) 2,186,753
Non-current liabilities 3,640,719 647,138 7,134 1,038 (218,002) 4,078,027
Shareholders' equity 2,442,433 868,427 40,521 3,332,458 (3,353,695) 3,330,144

Income segment reporting:
Consolidated Consolidated
Distribution Generation Trading Other Eliminations 2011 2010
OPERATIONAL REVENUE 9,911,238 378,779 216,681 10,715 (98,483) 10,418,930 9,836,991
Billed supplies 8,235,339 - - - - 8,235,339 7,927,985
Unbilled supplies 17,815 - - - - 17,815 (8,830)
Supply - Electric Power 48,812 366,638 195,770 - (80,293) 530,927 513,704
Construction revenue 794,649 - - - - 794,649 552,831
Other 814,623 12,141 20,911 10,715 (18,190) 840,200 851,301
REVENUE DEDUCTIONS (3,404,152) (43,001) (26,269) (723) - (3,474,145) (3,328,407)
Billed sales - ICMS (State VAT) (2,237,459) - (26,713) (1) - (2,264,173) (2,219,444)
Consumer charges (656,910) (10,040) - - - (666,950) (569,975)
PIS (Tax on Revenues) (90,460) (5,889) 236 (172) - (96,285) (96,439)
COFINS (Tax on Revenues) (416,664) (27,005) 1,092 (324) - (442,901) (438,864)
Other (2,659) (67) (884) (226) - (3,836) (3,685)
NET OPERATING REVENUE 6,507,086 335,778 190,412 9,992 (98,483) 6,944,785 6,508,584
OPERATING EXPENSES AND COSTS (5,825,501) (149,847) (175,330) (19,391) 98,483 (6,071,586) (5,266,571)
Personnel (213,289) (24,445) (4,491) (5,109) - (247,334) (265,754)
Material (24,890) (1,060) 309 (35) - (25,676) (33,490)
Outsourced services (361,289) (19,008) (16,631) (12,280) - (409,208) (360,426)
Energy purchased (3,755,149) (18,761) (152,232) - 98,111 (3,828,031) (3,392,464)
Depreciation (306,796) (56,984) (612) (162) - (364,554) (352,462)
Provisions (299,355) (1,286) - - - (300,641) (217,685)
Construction cost (794,649) - - - - (794,649) (552,831)
Other (70,084) (28,303) (1,673) (1,805) 372 (101,493) (91,459)
Equity in the earnings of subsidiaries - - - - - - -
FINANCIAL RESULT (410,992) (53,491) 5,510 1,312 - (457,661) (319,394)
Financial income 173,397 14,754 6,569 10,400 (29,203) 175,917 173,223
Financial expenses (584,389) (68,245) (1,059) (9,088) 29,203 (633,578) (492,617)
INCOME BEFORE TAXES 270,593 132,440 20,592 (8,087) - 415,538 922,619
Social Contribution (15,262) (11,654) (1,876) (149) - (28,941) (95,117)
Income tax (39,602) (30,849) (5,112) (387) - (75,950) (252,352)
NET INCOME 215,729 89,937 13,604 (8,623) - 310,647 575,150

19fmarf2012 105

38. TARIFF ADJUSTMENT

In a public meeting of the board of executive officers held on November 1
st
, 2011, ANEEL approved
the average adjustment of tariff charged by Light SESA by 6.57% for a period of 12 months as of
November 7
th
, 2011.

The tariff adjustment index has two components: a Structural component of 7.21%, which is now part
of the tariff, and a Financial component of -0.64%, exclusively applied to the next 12 months.

Structural IRT 7.21
Financial additions (0.64)
Total 6.57
Light 2011 Tariff Adjustment %

Considering the financial component of -0.64%, exclusively applied to the next 12 months and the
withdrawal of financial component of -1.33% present in Light's tariffs effective up to date, consumers
of subsidiary Light SESA will observe an average increase in their electricity bills of 7.90%, as of
November 7
th
, 2011.

Pursuant to the concession contract, the concessionaire's revenue is divided into two portions. Portion
A involves the so-called non-manageable costs related to the electric power distribution activity,
and are only transferred to the energy tariff, regardless of the concessionaire's management. Portion
B comprises the remaining revenue amount, therefore involving the so-called "manageable costs", i.e.
costs managed by the concessionaire itself. This portion includes operating and maintenance expenses,
depreciation and investment compensation.

The purpose of the tariff adjustment is to reestablish the purchasing power of the concessionaire's
revenue, according to a formula provided for in the concession agreement. The tariff is adjusted on an
annual basis at the contract anniversary date, except for the tariff review year. To apply the formula,
all of the distributor's non-manageable costs are calculated (Portion A). Other manageable costs
included in Portion B are restated by the IGP-M index established by Fundao Getlio Vargas. The
restatement of Portion B still depends on the X factor, an index established by ANEEL at the time of
adjustment. Its function is to share with the consumer the concessionaire's productivity gains deriving
from the growth in the number of consuming units and the increase in consumption in the existing
market, which contributes to a moderate tariff.

We point out the variation verified in Parcel A (Generation, Transmission and Sector Charges) of
7.33% which was impacted by high variation of Sector Charges of 21.36% in the period. Among these
charges, we point out the variation of the Global Reversal Reserve (RGR), which changed 1,688.95%,
as it was extended until 2035 through Law N
o
. 12,431/2011. Another charge with relevant variation in
the period was the System Services Charges (ESS), which increased 19.66% due to the costs
associated with thermal power plants out of merit order dispatch, in view of energy safety concerns as
set forth by Electricity Monitoring Committee (CMSE).

The Portion B variation (portion that remains with Light to cover its costs and remunerate its
investments) reflects the 6.95% IGP-M variation accumulated in the period of November 2010 to

19fmarf2012 106
October 2011, with deduction of the -0.01% X Factor, resulting in the final percentage of 6.96%.

39. LONG-TERM INCENTIVE PLAN

Incentive Plan in Phantom Options

The Phantom Options modality was offered to eligible executives appointed by the Board of
Directors and is directly linked to Light's value creation, measured by the variation in Light's Value
Unit (LVU). The calculation of LVU is based on the weighing of the following factors:

1. Market value of shares issued by Light S.A;
2. Economic value (a multiple of EBITDA);
3. Amount of dividends distributed.

The difference between the LVU provided in the Program for the grant year and the LVU verified in
the exercise year multiplied by the amount of shares exercised by the participant will amount to the
total long-term bonus to be paid to each participant.

No provision was recorded for December 31
st
, 2011, as the calculations made by the Company
referring to the LVU on December 31
st
, 2011 was lower than LVU in the grant year, and the amount of
R$2,092 was reversed in 2011 referring to the balance previously existing.

19fmarf2012 107

40. LONG-TERM CONTRACTS
a) Electric power sale agreements
On December 31
st
, 2011, the Company had power sale commitments positioned in average MW, as
shown in the chart below:
Energy contracted
Year Total (Average MW)
2012 522.3
2013 508.9
2014 510.2
2015 479.9
2016 479.9
2017 479.9
2018 479.9
2019 479.9
2020 449.6
2021 449.6
2022 449.6
2023 449.6
2024 449.6
2025 449.6
2026 449.6

b) Electric power purchase agreements
On December 31
st
, 2011 the Company had power purchase commitments, as follows:
Average MW Average MW Average MW
Year Bilateral agreement Energy auctions Total agreements
2012 1,341 1,883 3,224
2013 1,341 1,505 2,846
2014 1,341 949 2,290
2015 1,341 883 2,223
2016 1,341 865 2,206
2017 1,341 934 2,275
2018 1,341 939 2,280
2019 1,341 939 2,280
2020 1,341 939 2,280
2021 1,341 939 2,280
2022 1,341 939 2,280
2023 1,341 919 2,260
2024 1,341 877 2,218
2025 616 681 1,297
2026 - 634 634

19fmarf2012 108

41. SUBSEQUENT EVENTS

Acquisition of interest in Guanhes Energia S.A. (Guanhes Energia)

On February 10, 2012, the Company approved the acquisition, through its subsidiary Light Energia, of
26,520,000 common shares of Guanhes Energia, corresponding to 51% of its capital stock for
R$25,000, on the reference date of May 2011, restated by the IPCA until the operations closing date.
Guanhes Energia owns four Small Hydroelectric Power Plants (PCHs) with a joint installed
capacity of 44MW and assured energy of average 25.03 MW. The start-up of the first PCH is
scheduled for October 2013 and the last PCH in February 2014. Installation licenses have already been
issued and total investments to build PCHs are estimated at R$269,200, of which R$118,000 refer to
the contribution from equity capital of Guanhes Energias shareholders and Light Energia will
contribute with R$60,200.

Consortium for Maracan solar power plant

On February 10, 2012, the Company. approved the establishment of a consortium between its
subsidiary Light Esco and EDF Consultoria em Projetos de Gerao de Energia Eltrica Ltda. (EDF
Consultoria), with interests of 51% and 49%, respectively, for the development, construction and
operation of a 391 kW photovoltaic power plant to be installed on the Maracan stadium. Total
investments for the project is estimated at R$7,000 and the power generated will be sold on the free
market. After recovering the capital invested, Light Esco and EDF Consultoria will donate the plants
assets to the State of Rio de Janeiro. The works are scheduled for completion by December 2012.

Review of useful life of assets

On February 07, 2012, through normative resolution n 474, ANEEL established the new depreciation
rates for assets in service granted in the power sector based on a review of the useful life of assets. The
application of new rates will be from January 01, 2012. The Company is currently assessing the
impacts of this change in their financial assets, intangible and Property, plant and equipment.

19fmarf2012 109

SITTING MEMBERS ALTERNATES
Srgio Alair Barroso
Humberto Eustquio Csar Mota
Raul Belens Jungmann Pinto
Cristiano Corra de Barros
Djalma Bastos de Morais
Vago
Rutelly Marques da Silva
Andr Fernandes Berenguer
Elvio Lima Gaspar
David Zylberstajn
Carlos Alberto da Cruz
Luiz Fernando Rolla
Csar Vaz de Melo Fernandes
Fernando Henrique Schuffner Neto
Carmen Lcia Claussen Kanter
Wilson Borrajo Cid
Paulo Roberto Reckziegel Guedes
Mario Antonio Thomazi
Marcelo Pedreira de Oliveira
Joaquim Dias de Castro
Almir Jos dos Santos
Magno dos Santos Filho
SITTING MEMBERS ALTERNATES
Marcelo Lignani Siqueira Eduardo Gomes Santos
Aristteles Luiz Menezes Vasconcellos Drummond Ari Barcelos da Silva
Eduardo Grande Bittencourt Ricardo Genton Peixoto
Isabel da Silva Ramos Kemmelmeier Ronald Gasto Andrade Reis
Victor Adler Gabriel Agostini
FISCAL COUNCIL
BOARD OF DIRECTORS

19fmarf2012 110

BOARD OF EXECUTIVE OFFICERS
Jerson Kelman
Chief Executive Officer

Joo Batista Zolini Carneiro
Chief Financial and Investor Relations Officer

Evandro Leite Vasconcelos
Energy Officer

Paulo Carvalho Filho
Corporate Management Officer

Ana Silvia Corso Matte
Personnel Officer

Jos Humberto Castro
Distribution Officer

Paulo Roberto Ribeiro Pinto

New Business and Institutional Officer

Fernando Antnio Fagundes Reis

Legal Officer

CONTROLLERSHIP SUPERINTENDENCE

Roberto Caixeta Barroso Suzanne Lloyd Gasparini
Controllership Superintendent
Accountant Accounting Manager
CPF 013.011.556-83 CPF 081.425.517-56
CRC-MG 078086/O-8 CRC-RJ 107359-0

19fmarf2012 111

Independent auditors report on the financial statements
(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange
Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM
and the International Financial Reporting Standards - IFRS)

To
Board of Directors and Shareholders
Light S.A.
Rio de Janeiro - RJ

We have examined the individual and consolidated financial statements of Light S.A. (Company),
identified as Parent Company and Consolidated, respectively, which comprise the balance sheet as of
December 31, 2011 and the respective statements of operations, of changes in shareholders equity and
of cash flows for the year then ended, as well as a summary of the significant accounting policies and
other notes to the financial statements.

Management responsibility for the financial statements

The Companys management is responsible for the preparation and fair presentation of the individual
financial statements in accordance with the accounting practices adopted in Brazil and of the
consolidated financial statements in accordance with International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board IASB and in accordance with the
accounting practices adopted in Brazil as well as for the internal controls, which they deemed
necessary to enable the preparation of these financial statements free of material misstatements,
regardless of whether due to fraud or error.

Independent auditors responsibility

Our responsibility is to express an opinion on these financial statements based on our audit, carried out
in accordance with Brazilian and International Standards on Auditing. These standards require
compliance of ethical requirements by the auditors and that the audit be planned and performed for the
purpose of obtaining reasonable assurance that the financial statements are free from material
misstatement.

19fmarf2012 112

An audit involves performing selected procedures to obtain evidence with respect to the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors judgment,
including the assessment of the risks of material misstatements of the financial statements, regardless
of whether due to fraud or error. In the assessment of these risks, the auditor considers relevant
internal controls for the preparation and fair presentation of the Companys financial statements, in
order to plan the audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion about the effectiveness of the Companys internal controls. An audit also
includes evaluating the adequacy of the accounting practices used and the reasonableness of the
accounting estimates made by Management, as well as evaluating the overall presentation of the
financial statements taken as a whole.

We believe that the audit evidence obtained is sufficient and appropriate for expressing our opinion.

Opinion on the individual financial statements

In our opinion, the aforementioned individual financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2011, and of financial performance
and its cash flows for the year then ended, in accordance with accounting practices adopted in Brazil.

Opinion on the consolidated financial statements

In our opinion, the aforementioned consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Company as of December 31, 2011, its consolidated
financial performance and its cash flows for the financial year then ended, in accordance with
International Financial Reporting Standards (IFRS) issued by the International Accounting Standards
Board - IASB and accounting practices adopted in Brazil.

Emphasis

As mentioned in note 2, the individual financial statements were prepared in accordance with
accounting practices adopted in Brazil. In the case of Light S.A., these practices differ from the IFRS
applicable to the separate financial statements, only with respect to the valuation of investments in
subsidiaries, associated companies and joint ventures by the equity accounting method, while for IFRS
purposes it would be valued at cost or fair value.
Our opinion is not qualified due to this issue.

Other matters

Statements of added value

We have also examined the individual and consolidated statements of added value (DVA) for the
financial year ended December 31, 2011, which are the responsibility of management, for which
presentation is required by the Brazilian Corporation Law for publicly-held companies and presented
as supplementary information under IFRS, as these standards do not require the presentation of a
Statement of Added Value. These statements were submitted to the same audit procedures previously
described and, in our opinion, are presented fairly, in all material respects, in relation to the financial
statements taken as a whole.

19fmarf2012 113
Rio de Janeiro, March 2, 2011
KPMG Auditores Independentes
CRC-SP-14.428/O-6-F-RJ
Original in Portuguese signed by
Vnia Andrade de Souza
Accountant CRC-RJ-057.497/O-2

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