Corporate Presentation Light - July 2014

8/12/2019 Corporate Presentation Light - July 2014

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Corporate Presentation

July 2014


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Light Holdings


3/32

4

56

7

Light in numbers

Amaznia Energia

Renova

Guanhes Energia

Generation

Complexo de Lajes

Distribution RJ StateConcession

Area%

Population 16 mn 11 mn 68%

Area 44,000 Km 11,000 Km 25%

GDP R$ 407 bn R$ 207 bn 51%

# Consumers 7 mn 4 mn 57%

# Municipalities 92 31 34%

5

HPP Ilha dos Pombos

SHP Paracambi

HPP Santa Branca

1

2

3

1 IBGE (2010)

4

6

7


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RankingsAmong the largest players in Brazil

INTEGRATEDNet Revenues 2013* R$ Billion

GENERATION PRIVATE-OWNED COMPANIESInstalled Hydro-generation Capacity (MW) 2013

37,767

25,77722,926

21,783 20,391

15,634

15.6

10.69.2

7.47.1

5,560

2,652 2,241 2,219

1,799 896

DISTRIBUTIONEnergy Consumption in Concession Area** (GWh) - 2013

1 Source: Companies reports

2 Source: Relatrio do Sistema de Apoio

a ANEEL

* Construction Revenue Included

** Captive Market

*** Considers the 9 MW of Renovas SHPs

and 19 MW of Brasil PCH

***

14.6


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Shareholders StructureEfficient combination of solid industry and financial players

11 Board members: 8 from the controlling

group, 2 independents e 1 employeesnominated

A qualifying quorum of 7 members to

approve relevant proposals such as: M&A

and dividend policy


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Corporate Governance

General Assembly

Fiscal Council

Board of Directors

AuditorsCommittee

Governance andSustainability

Committee

HumanResourcesCommittee

FinancesCommittee

ManagementCommittee

Chief ExecutiveOfficerChief ExecutiveOfficer

CorporateManagement Officer

Joo B. Zolini Carneiro Ricardo Cesar C. Rocha Evandro L. Vasconcelos Andreia Ribeiro Junqueira

Fernando Antnio F.Reis Paulo Carvalho Filho Evandro L. Vasconcelos*

Paulo Roberto R. Pinto

ChiefCommunications

Officer

Luiz Otavio Ziza Valadares

Interim*

Chief Financial andInvestor Relations

Officer

Chief Legal Officer

Chief HR OfficerChief Distribution

OfficerChief Energy Officer

Chief BusinessOfficer


7/32

Energy ConsumptionDistribution Quarter

1Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process.the billed energy of the free customer CSN has been considered back.

TOTAL MARKET (GWh)

Industrialcaptive

4.9%

Free17.1%

Otherscaptives

13.2%

Commercial

captive27.6%

Residentialcaptive37.3%

+7.8%

6,8416,8416,8416,8416,1806,1806,1806,180

27.0C27.0C27.0C27.0C

28.3C28.3C28.3C28.3C

1Q1Q1Q1Q12121212

6,2916,2916,2916,291 7,3747,3747,3747,374

1Q1Q1Q1Q11111111

26.9C26.9C26.9C26.9C

27.827.827.827.8CCCC

+5.4% a.a.

1Q1Q1Q1Q13131313 1111Q14Q14Q14Q14


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Market Breakdown

RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL

1Q1Q1Q1Q13131313 1Q1Q1Q1Q14141414

ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET QUARTER

1111Q13Q13Q13Q13 1111Q14Q14Q14Q14 1111Q13Q13Q13Q13 1111Q14Q14Q14Q14 1111Q13Q13Q13Q13 1111Q14Q14Q14Q14 1111Q13Q13Q13Q13 1111Q14Q14Q14Q14

FREECAPTIVE

+7.8%

5,5725,5725,5725,572 6,1176,1176,1176,117

6,8416,8416,8416,841

1,2691,2691,2691,2691,2571,2571,2571,257

7,3747,3747,3747,374

+6.1%

913913913913 970970970970

966966966966

53535353 55555555

1,0251,0251,0251,025

+8.3%

2222,093,093,093,093

215215215215233233233233

2,2672,2672,2672,267

359359359359 360360360360

1,3591,3591,3591,359

1,0001,0001,0001,000 970970970970

1,3301,3301,3301,330

+13.6%

2,4232,4232,4232,423

2,7522,7522,7522,752

-2.1%

1,8771,8771,8771,877 2,0342,0342,0342,034


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Losses and CollectionEncouraging results already appear from an integrated approach

LOSS (12 MONTHS)

% Non% Non% Non% Non----technicaltechnicaltechnicaltechnicallosses/ LV Marketlosses/ LV Marketlosses/ LV Marketlosses/ LV Market

NonNonNonNon----technical lossestechnical lossestechnical lossestechnical losses GWhGWhGWhGWh Technical lossesTechnical lossesTechnical lossesTechnical losses GWhGWhGWhGWh

% Non% Non% Non% Non----technical losses /technical losses /technical losses /technical losses /LV MarketLV MarketLV MarketLV Market ---- RegulatoryRegulatoryRegulatoryRegulatory

42.2%42.2%42.2%42.2%

43.7%43.7%43.7%43.7%

5,7385,7385,7385,738

2,6142,6142,6142,614

8,5528,5528,5528,552

44.2%44.2%44.2%44.2%

MarMarMarMar/13/13/13/13 Jun/Jun/Jun/Jun/13131313

42.4%42.4%42.4%42.4%

6,0296,0296,0296,029

2,6182,6182,6182,618

8,7488,7488,7488,748

DecDecDecDec/13/13/13/13

5555,955,955,955,955

2,7932,7932,7932,793

8,3528,3528,3528,352

MarMarMarMar/14/14/14/14

44.9%44.9%44.9%44.9%

5,9535,9535,9535,953

2,6292,6292,6292,629

8,6478,6478,6478,647

SepSepSepSep/13/13/13/13

5,9055,9055,9055,905

2,6472,6472,6472,647

8,5828,5828,5828,582

- 2.5%

PBD/GROSS REVENUE

(BILLED SALES) - 12 MONTHS

Mar/Mar/Mar/Mar/12121212 MMMMar/ar/ar/ar/1 41 41 41 4Mar/13Mar/13Mar/13Mar/13

3.03.03.03.0%%%% 2.82.82.82.8%%%%

1.8%1.8%1.8%1.8%

-1.0 p.p.

COLLECTION RATE

12 MONTHS

99.5%99.5%99.5%99.5% 98.798.798.798.7%%%%

Mar/Mar/Mar/Mar/13131313 Mar/14Mar/14Mar/14Mar/14


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Macro StrategyRevenue shielding through efficient combination of electronic meters and

effective workforce management

OutOutOutOut ofofofof FavelasFavelasFavelasFavelas

FavelasFavelasFavelasFavelas

CLIENTS ENERGY AND STATUS

Retail and residential clients(Low Voltage)

4,100,000

Low VoltageLargest Clients

22,000

LargeClients

(hight andmed voltage)

7,600

11,500 GWh (48%)

100% Concluded

2,700 GWh (11%)1/3 as of today until 2015

10,000 GWh (41%)

APZ

351351351351

2010201020102010 2011201120112011 20132013201320132012201220122012

303030307777

79797979

102102102102

227227227227122122122122

432432432432

197197197197115115115115

272272272272330330330330

MarMarMarMar----14141414

109109109109

467467467467

358358358358


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New Technology Program

Technology used in regions in which conventional measures are not effective

Areas that present high levels of non-technical losses

Light aims to reduce losses through investments in new technologies, integration of operationalactivities, increase of public awareness and institutional partnerships with interested agents.

Grid shielding projects

Actual gridActual gridActual gridActual grid Shielded gridShielded gridShielded gridShielded grid

Control roomControl roomControl roomControl room


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Focused in areas with 10,000 to 20,000 clients with high level of losses anddelinquency;

Fully-dedicated teams of technicians and commercial agents;

Results constantly and accurately monitored by Light;

Result-linked remuneration for services provided;

27 units implemented with 446,000

clients (11% of total clients);

200 thousands additional clients per year.

Zero Losses AreaProject: Light Legal (APZ Zero Losses Area)

ELECTRONICMETERS

WORKFORCEMANAGEMENT

PARTNERSHIP WITH THE STATEGOVERNMENT


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APZ COLLECTIONAPZ LOSSES

Evolution of APZs ResultsSignificant loss reduction and increasing collection rate

BeforeBeforeBeforeBefore

50.250.250.250.2 %%%%

20.7%20.7%20.7%20.7%

89898989.2%.2%.2%.2%

95.9%95.9%95.9%95.9%

BeforeBeforeBeforeBefore

100.7%100.7%100.7%100.7%

98.2%98.2%98.2%98.2% 97.9%97.9%97.9%97.9% 98.3%98.3%98.3%98.3%

24.8%24.8%24.8%24.8%23.6%23.6%23.6%23.6%

22.5%22.5%22.5%22.5%21.2%21.2%21.2%21.2%

Mar/14

Mar/14

Mar/14

Mar/14

Dec

Dec

Dec

Dec/12/12/12/12

Mar/13

Mar/13

Mar/13

Mar/13

Jun/13

Jun/13

Jun/13

Jun/13

Sep

Sep

Sep

Sep/13/13/13/13

Mar/14

Mar/14

Mar/14

Mar/14

Dec

Dec

Dec

Dec/12/12/12/12

Mar/13

Mar/13

Mar/13

Mar/13

Jun/13

Jun/13

Jun/13

Jun/13

Sep

Sep

Sep

Sep/13/13/13/13

-29.5%

+6.7%

Dec

Dec

Dec

Dec/13/13/13/13

99.5%99.5%99.5%99.5%

DDDDecececec/13/13/13/13

20.3%20.3%20.3%20.3%


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Regulatory Allowance for Non-Technical LossesHigher recognition of losses linked to targets achievementAdditional revenues to be invested in losses combat and booked as

special obligations (ex-RAB)

2013201320132013 2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018

RegulatoryRegulatoryRegulatoryRegulatory LossesLossesLossesLosses

TargetTargetTargetTarget

RegulatoryRegulatoryRegulatoryRegulatory LossesLossesLossesLosses withwithwithwith PenaltyPenaltyPenaltyPenalty

FinalFinalFinalFinal ProposalProposalProposalProposal ((((accordingaccordingaccordingaccording totototo methodologymethodologymethodologymethodology

PreliminaryPreliminaryPreliminaryPreliminary ProposalProposalProposalProposal ((((accordingaccordingaccordingaccording totototo methodologymethodologymethodologymethodology


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GENERATIONBUSINESS


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855 MW Installed CapacityConcessions Expiring Only in 2026

HPP Santa Branca

56 MWHPP Ilha dos

Pombos 187 MW

HPP Fontes Nova

132 MWHPP Underground

Nilo Peanha - 380 MWHPP Pereira Passos

100 MW

SP

RJ

HPP SantaBranca

Paraiba do Sul River

HPP Ilha dosPombos

100%

100%100%100%

LajesComplex

100%


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Re-pricing of existing energySignificant price increase due to replacement of former regulated contracts for new

ones with free clients

ContractedContractedContractedContracted Energy (Energy (Energy (Energy (FreeFreeFreeFree HedgeHedgeHedgeHedgeAvailableAvailableAvailableAvailable EnergyEnergyEnergyEnergy

CONVENTIONAL ENERGY BALANCE

ASSURED ENERGY (MW average)

2014201420142014 2015201520152015 2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020 2021202120212021

Average sale priceto free market

(R$/MWh)149149149149 144144144144 161161161161 158158158158 161161161161 175175175175 178178178178 178178178178

549549549549

39393939

510510510510

28282828 28282828 28282828 28282828 28282828 28282828 28282828

549549549549 549549549549 549549549549 549549549549 549549549549 549549549549 549549549549

471471471471

352352352352 351351351351 309309309309239239239239 228228228228 228228228228

51515151

169169169169 170170170170 213213213213283283283283 294294294294 294294294294


18/32

Generation ExpansionGrowth in renewable generation with experienced partners

ProjectProjectProjectProject InstalledInstalledInstalledInstalled CapacityCapacityCapacityCapacity

(MW(MW(MW(MW

AssuredAssuredAssuredAssured EnergyEnergyEnergyEnergy

((((MWaverageMWaverageMWaverageMWaverage

OperationalOperationalOperationalOperational StartStartStartStart StakeStakeStakeStake

ParacambiParacambiParacambiParacambi 25252525 20202020 2012201220122012 51%51%51%51%

RenovaRenovaRenovaRenova425 (in425 (in425 (in425 (in operationoperationoperationoperation

1,806 (1,806 (1,806 (1,806 (contractedcontractedcontractedcontracted

235 (in235 (in235 (in235 (in operationoperationoperationoperation

921 (921 (921 (921 (contractedcontractedcontractedcontracted

2008200820082008 ---- 2012201220122012

2014201420142014 201820182018201821.86%21.86%21.86%21.86%

Belo MonteBelo MonteBelo MonteBelo Monte 11,22311,22311,22311,223 4,5714,5714,5714,571 2015201520152015 2.49%2.49%2.49%2.49%

GuanhesGuanhesGuanhesGuanhes 44444444 25252525 2014201420142014 51%51%51%51%

LajesLajesLajesLajes 17171717 16161616 2015201520152015 100%100%100%100%


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Generation ExpansionInstalled Capacity (MW)

Light's proportional Participation

855855855855 855855855855 855855855855 855855855855 855855855855 855855855855 855855855855 855855855855 855855855855 855855855855 855855855855 855855855855

941941941941

1,0451,0451,0451,045 1,0631,0631,0631,063 1,0771,0771,0771,077

1,1761,1761,1761,176 1,2111,2111,2111,2111,3001,3001,3001,300

1,3711,3711,3711,371 1,4171,4171,4171,417

1,5401,5401,5401,5401,6601,6601,6601,660 1,6751,6751,6751,675

2H132H132H132H13 1H141H141H141H14 2H142H142H142H14 1H151H151H151H15 2H152H152H152H15 1H161H161H161H16 2H162H162H162H16 1H171H171H171H17 2H172H172H172H17 1H181H181H181H18 2H182H182H182H18 1H191H191H191H19

Light EnergiaLight EnergiaLight EnergiaLight Energia SHPP ParacambiSHPP ParacambiSHPP ParacambiSHPP Paracambi RenovaRenovaRenovaRenova GuanhesGuanhesGuanhesGuanhes Belo MonteBelo MonteBelo MonteBelo Monte SHPP LajesSHPP LajesSHPP LajesSHPP Lajes

Renova: +104Guanhes: +18

Renova: +6Guanhes: +5B.Monte: +3

Renova: +78B.Monte: +3Lajes: +17

Renova: +5B.Monte: +30



B.Monte: +46 Renova: +78B.Monte: +46


51% Light 21.86% Light 2.49% Light

B.Monte: +15


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RESULTS


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Net Revenue

IndustrialIndustrialIndustrialIndustrial ((((CaptiveCaptiveCaptiveCaptive5555.3.3.3.3%%%%

NET REVENUE (R$MN)

GenerationGenerationGenerationGeneration9.4%9.4%9.4%9.4%

DistributionDistributionDistributionDistribution77777777.6%**.6%**.6%**.6%**

NET REVENUE BY SEGMENT (1Q14)*

CommercializationCommercializationCommercializationCommercialization13131313.1%.1%.1%.1%

* Eliminations not considered** Construction revenue not considered

NET REVENUE FROM DISTRIBUTION (1Q14)

CommercialCommercialCommercialCommercial((((CaptiveCaptiveCaptiveCaptive30.030.030.030.0%%%%

OthersOthersOthersOthers ((((CaptiveCaptiveCaptiveCaptive 11.2%11.2%11.2%11.2%

Network Use (TUSDNetwork Use (TUSDNetwork Use (TUSDNetwork Use (TUSD((((FreeFreeFreeFree ++++ ConcessionairesConcessionairesConcessionairesConcessionaires

6.7%6.7%6.7%6.7%

ResidentialResidentialResidentialResidential ((((CaptiveCaptiveCaptiveCaptive46.846.846.846.8%%%%

Construction RevenueConstruction RevenueConstruction RevenueConstruction Revenue

Revenue w/out constructionRevenue w/out constructionRevenue w/out constructionRevenue w/out constructionrevenuerevenuerevenuerevenue

1Q141Q141Q141Q141Q1Q1Q1Q13131313

1,7651,7651,7651,765

+18.8%

2,2,2,2,119119119119

1,921,921,921,922222 2,2,2,2,282282282282

157157157157 164164164164


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Operating Costs and Expenses

ManageableManageableManageableManageable((((distributiondistributiondistributiondistribution::::RRRR$$$$ 351351351351

((((18.518.518.518.5%%%%

GenerationGenerationGenerationGeneration andandandandCommercializationCommercializationCommercializationCommercialization::::RRRR$$$$ 315315315315

(16.6%(16.6%(16.6%(16.6%

NonNonNonNon manageablemanageablemanageablemanageable((((distributiondistributiondistributiondistribution********::::RRRR$$$$ 1,221,221,221,227777

((((64.864.864.864.8%%%%

* Eliminations not considered

** Construction revenue not considered

DISTRIBUTION PMSO COSTS (R$MN)COSTS (R$MN)*

1Q14

R$ MN 1Q13 1Q14 Var.

PMSO (184.0) (187.8) 2.1%

Provisions (45.2) (65.3) 44.3%

PCLD (29.0) (25.3) -12.8%

Contingencies (16.2) (40.0) 146.6%

Depreciation (80.6) (85.4) 6.0%

Other operational/revenues expenses

(7.3) (12.1) 66.3%

otal (317.1) (350.6) 10.6%

184184184184 188188188188

+2.1%

1Q1Q1Q1Q141414141Q1Q1Q1Q13131313


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CDE FundInvoluntary exposure together with unfavorable hydrological scenario and PLD in

the ceiling, put the cash flow under pressure in the short term

Decree8203

(jan/14)

Decree8221

(apr/14)

Quotas Involuntary Exposure

A-1 Auction Involuntary Exposure

Involuntary Exposure NewEnergy

Availabilitie Contracts

Hydrological Risk

A-0 Auction Contract NA

(84,6(84,6(84,6(84,6

(1.245,7(1.245,7(1.245,7(1.245,7

1.161,01.161,01.161,01.161,0

ShortShortShortShort----TermTermTermTermEnergyEnergyEnergyEnergy(Spot(Spot(Spot(Spot

BalanceBalanceBalanceBalanceCDE FundCDE FundCDE FundCDE FundTotalTotalTotalTotal

CDECDECDECDE fundfundfundfund ----1Q141Q141Q141Q14 (R$ MN(R$ MN(R$ MN(R$ MN


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EBITDA BY SEGMENT(R$ MN)

1111Q13Q13Q13Q13 1111Q14Q14Q14Q14

453453453453

355355355355

+ 27.5%

Generation and CommercializationGeneration and CommercializationGeneration and CommercializationGeneration and Commercialization

DistributionDistributionDistributionDistribution

44444444.0%.0%.0%.0%

56565656.0%.0%.0%.0%

36.2%36.2%36.2%36.2%

63.8%63.8%63.8%63.8%

CONSOLIDATED EBITDA 1Q14 1Q13 Var.

Distribution 254.8 228.1 11.7%

EBITDA Margin % 14,6% 14.3% 0.2 p.p.

Generation 182.8 119.3 53.2%

EBITDA Margin % 86.5% 82.1% 4.4 p.p.

Commercialization 17.5 9.9 76.9%

EBITDA Margin % 6.0% 6.3% -0.3 p.p.

Other and Eliminations (2.2) (2.2) 0.4%

TOTAL 452.9 355.1 27.5%EBITDA Margin % 21.4% 20.1 1.2 p.p.


25/32

Adjusted EBITDA

EBITDAEBITDAEBITDAEBITDA1Q131Q131Q131Q13

EBITDAEBITDAEBITDAEBITDA1Q141Q141Q141Q14

NetNetNetNetRevenueRevenueRevenueRevenue

NonNonNonNon----ManageableManageableManageableManageable

CostsCostsCostsCosts

ManageableManageableManageableManageableCostsCostsCostsCosts

(PMSO(PMSO(PMSO(PMSO

ProvisionsProvisionsProvisionsProvisionsRegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

RegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

AdjustedAdjustedAdjustedAdjustedEBITDAEBITDAEBITDAEBITDA

1111Q13Q13Q13Q13

AdjustedAdjustedAdjustedAdjustedEBITDAEBITDAEBITDAEBITDA

1111Q14Q14Q14Q14

1Q13 / 1Q14(R$ MN)

101101101101

456456456456

355355355355

354354354354(217(217(217(217

(8(8(8(8

(18(18(18(18

435435435435

- 4.7%

+ 27.5%

453453453453

(13(13(13(13 ((((4444 (20(20(20(20 (2(2(2(2

OtherOtherOtherOtherOperacionalOperacionalOperacionalOperacionalRevenuesRevenuesRevenuesRevenues

EquityEquityEquityEquityPPPPikupikupikupikup


26/32

Adjusted Net Income1Q13 / 1Q14

(R$ MN)

1111Q13Q13Q13Q13 1111Q14Q14Q14Q14EBITDAEBITDAEBITDAEBITDA FinancialFinancialFinancialFinancialResultResultResultResult

TaxesTaxesTaxesTaxes DepreciationDepreciationDepreciationDepreciationRegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

RegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

Adjusted NetAdjusted NetAdjusted NetAdjusted NetIncomeIncomeIncomeIncome1111Q13Q13Q13Q13

Adjusted NetAdjusted NetAdjusted NetAdjusted NetIncomeIncomeIncomeIncome1111Q14Q14Q14Q14

+129.5%

145145145145

67676767

79797979

60606060 (51(51(51(51(5(5(5(5

181181181181

(12(12(12(12

168168168168

+15.9%

98989898


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Dividends


28/32

Indebtedness

Average Term: 3.9 years

AMORTIZATION SCHEDULE* (R$ MN)

NominalNominalNominalNominal CostCostCostCost RealRealRealReal CostCostCostCost

NET DEBT

* Principal only

COST OF DEBT

20122012201220122011201120112011 1Q141Q141Q141Q142013201320132013

NetNetNetNet DebtDebtDebtDebt / EBITDA/ EBITDA/ EBITDA/ EBITDA

Mar/13*Mar/13*Mar/13*Mar/13*

2.24%2.24%2.24%2.24%

8.21%8.21%8.21%8.21%

3333.63%.63%.63%.63%

10.01%10.01%10.01%10.01%

4.25%4.25%4.25%4.25%

11.03%11.03%11.03%11.03% 9999.68%.68%.68%.68%

3.553.553.553.55%%%%

2014201420142014 2015201520152015

494494494494779779779779

1,0171,0171,0171,017811811811811

899899899899

441441441441 450450450450 450450450450 565565565565

2016201620162016 2017201720172017 2018201820182018 2019201920192019 2020202020202020 2021202120212021 AfterAfterAfterAfter2021202120212021

*Considering Hedge

TJLPTJLPTJLPTJLP13.513.513.513.5%%%%

CDICDICDICDI73.9%73.9%73.9%73.9%

IPCAIPCAIPCAIPCA10.7%10.7%10.7%10.7%

OthersOthersOthersOthers1.5%1.5%1.5%1.5%

U$/EuroU$/EuroU$/EuroU$/Euro0.4%0.4%0.4%0.4%

2.842.842.842.84 2.902.902.902.90

Mar/14Mar/14Mar/14Mar/14DecDecDecDec////13*13*13*13*

5,096.85,096.85,096.85,096.8 5,249.55,249.55,249.55,249.5 5,341.85,341.85,341.85,341.8

2.732.732.732.73

*With Pension Fund


29/32

Investments

CAPEXCAPEXCAPEXCAPEX (R(R(R(R$ MN$ MN$ MN$ MN CAPEX BREAKDOWNCAPEX BREAKDOWNCAPEX BREAKDOWNCAPEX BREAKDOWN(R(R(R(R$ MN$ MN$ MN$ MN

1111Q14Q14Q14Q14

GenerationGenerationGenerationGeneration3.53.53.53.5

AdministrationAdministrationAdministrationAdministration3333.3.3.3.3

OthersOthersOthersOthers2.82.82.82.8

Develop. ofDevelop. ofDevelop. ofDevelop. ofDistributionDistributionDistributionDistribution

SystemSystemSystemSystem106.6106.6106.6106.6

LossesLossesLossesLossesCombatCombatCombatCombat

48.948.948.948.9

Investments in Electric Assets (DistributionInvestments in Electric Assets (DistributionInvestments in Electric Assets (DistributionInvestments in Electric Assets (Distribution

CommercCommercCommercCommerc././././EnergyEnergyEnergyEnergy EficiencyEficiencyEficiencyEficiency10101010.5.5.5.5

2010201020102010

929929929929

701701701701

2011201120112011 2012201220122012

797797797797

694694694694

103103103103

519519519519

182182182182

775775775775

154154154154

713713713713

132132132132

845845845845

+7.9%

2013201320132013

163163163163

1Q131Q131Q131Q13 1Q141Q141Q141Q14

36363636 17171717

127127127127 158158158158

176176176176


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Why invest in Light?

Major upcoming events Integration of favelas

Pro-business environment New plants investments Expansion of the existing ones Market growth

Economic

Transformation inthe Concession

Area

Progress in the TechnologyProgram New network and meters in the

pacified favelas Smart metering development Zero Losses Area Program

EnergyLosses Reduction

Investment in Renova, Belo Montee Guanhes (total of 697 MW)

SHP Lajes under construction

(17MW).

Growth in theGenerationBusiness

New PPAs starting in 2014

Revenues increase with noaditional costs. Very active trading subsidiary

Repricing ofExisting Energy

Listed in Novo Mercado ofBovespa; Board Committees very active Included in the Sustainability

Index (ISE) of Bovespa for theseventh year.

Best-in-ClassCorporate

Governance

Sound Dividend Policy: minimum50% of net income;

Average payout since 2007: 90%

Dividend trackRecord


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Important Notice

This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and

international movable values. These declarations are based on certain assumptions and analyses made by the Company in

accordance with its experience, the economic environment, market conditions and future events expected, many of which

are out of the Companys control. Important factors that can lead to significant differences between the real results and the

future declarations of expectations on events or business-oriented results include the Companys strategy, the Brazilian and

international economic conditions, technology, financial strategy, developments of the public service industry, hydrological

conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals,

expectations and intentions, among others. Because of these factors, the Companys actual results may significantly differ

from those indicated or implicit in the declarations of expectations on events or future results.

The information and opinions herein do not have to be understood as recommendation to potential investors, and no

investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the

Companys assessors or parts related to them or its representatives will have any responsibility for any losses that can

elapse from the use or the contents of this presentation.

This material includes declarations on future events submitted to risks and uncertainties, which are based on current

expectations and projections on future events and trends that can affect the Companys businesses. These declarations

include projections of economic growth and demand and supply of energy, in addition to information on competitive position,

regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates

and assumptions on which these declarations are based on.


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Contacts

Joo Batista Zolini CarneiroCFO and IRO

Gustavo WerneckSuperintendent of Finance and Investor Relations

+55 21 2211 2560

[email protected]

Mariana da Silva RochaIR Manager

+ 55 21 2211 [email protected]

http://ri.light.com.br/ www.facebook.com/lightri twitter.com/LightRI

Corporate Presentation Light - July 2014

Documents

Transcript of Corporate Presentation Light - July 2014