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Conference Call

Conference Call. 4º Quarter of 2012. Highlights. RESULTS. CAPITAL MARKETS. OPERATIONAL.

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Conference Call

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  1. ConferenceCall 4º Quarterof 2012

  2. Highlights RESULTS CAPITALMARKETS OPERATIONAL • Consumptiongrew5.2% compared to4Q11, manlydrivenbythe major temperatureandbythecommercialsegmentwhchincreased its consumptionby13.5%. In 2012 theconsumptiongrew 2.0%. Adjustingbytheclientswithlong-term default the consumption increase was 3,0%; • Collection rate (LTM) for the last 12 months reached 98.0%, 60 bpsabovethe same period last year; • Non-technicallossesreached45.4% over thelow-voltagemarket, due to the change in criteria of clients with long-term default; • In 2012, investments amounted R$796.8 million, been R$694.1 million forthedistribuitionsegmentonly. • 24.5% increase in Net Revenue (withoutconstructionrevenue) reachingR$ 1,963.6 million in the 4Q12 and R$ 6,943.1 million in 2002, anincreaseof 12.9%. • R$ 483.9 million EBITDA in 4Q12, 49.5% increase. In 2012, EBITDA reached R$ 1,456.2 million, 17.7% higher than in the 2011. • R$ 160.0 millionofnet Income in 4Q12, anincreaseof 21.3%. In 2012, net income was up 24.0%, totaling R $ 423.9 million. • On March 25, Board of Directors approved the proposal to distribute additional dividends of R$ 91,770,327.00, or R$ 0.45 per share, to be decided at the OGM in April. • Net debt of R$ 4,273.1 million, andmultiple for covenantseffectof2.9x.

  3. EnergyConsumptionDistribution – Quarter TOTAL MARKET (GWh) ¹ Free14% +1.5% Industrial7% +5.2% 5,965 Others15% 5,716 5,673 5,655 With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 6.3% over 2011. 25.9ºC 26.1ºC 24.6ºC 23.9ºC Commercial30% Residential34% 4Q09 4Q10 4Q11 4Q12 1Note: To preserve comparability in themarketapprovedbyAneel in thetariffadjustmentprocess, thebilledenergyofthefreecustomers Valesul, CSN and CSA wereexcluded in viewofthesecustomers’ plannedmigration to theBasic Network.

  4. EnergyConsumptionDistribution – Year TOTAL MARKET (GWh) ¹ +2.9% Free14% +2.0% Industrial7% 23,384 22,932 22,384 21,492 Others15% With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 3.0% over 2011. 25.0ºC 24.5ºC 24.3ºC 24.0ºC Residential35% Commercial29% 2009 2010 2011 2012 1Note: To preserve comparability in themarketapprovedbyAneel in thetariffadjustmentprocess, thebilledenergyofthefreecustomers Valesul, CSN and CSA wereexcluded in viewofthesecustomers’ plannedmigration to theBasic Network.

  5. Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER +5.2% 5,965 5,673 851 769 +13.5% +1.3% 2,032 2,006 1,988 1,752 -1.3% 5,114 192 +4.9% 4,904 165 1,010 996 949 905 47 1,795 46 1,587 558 612 903 860 452 384 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 4Q11 4Q12 OTHERS TOTAL RESIDENTIAL INDUSTRIAL COMMERCIAL FREE CAPTIVE

  6. Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – YEAR +2.0% 23,384 22,932 3,330 3,056 -3.2% +9.1% 8,418 8,149 7,599 6,967 743 -0.5% +3.0% 20.054 657 19.877 3,944 3,925 3,712 3,603 191 185 6,856 6,310 2,213 2,396 3,521 3,417 1,731 1,528 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 OTHERS TOTAL RESIDENTIAL INDUSTRIAL COMMERCIAL FREE CAPTIVE

  7. Collection COLLECTION RATE 12 MONTHS COLLECTION RATE BY SEGMENT YEAR 102.6% 101.0% 102.5% 98.0% 97.4% 98.8% 98.0% 97.4% 96.4% 94.3% Dec/11 Dec/12 Total Retail Large Clients Public Sector 2011 2012

  8. LossPrevention ENERGY RECOVERY GWh LOSS (12 MONTHS) -26.0% 45.4% 169.3 43.1% 125.2 42.2% Reflets the change on treatment's criteria in the approach to long term delinquent customers, basedonAneelResolution 414. 41.2% 33.3% 40.4% 8,536 8,047 7,838 7,665 7,582 2011 2012 5,615 6,007 5,247 5,316 5,457 INCORPORATION GWh 2,529 2,432 2,381 2,335 2,349 +12.5% 157.9 140.4 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Technical losses GWh Non-technical losses GWh % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory 2012 2011

  9. Net Revenue NET REVENUE BY SEGMENT (2012)* NET REVENUE (R$MN) Commercialization4.1% Generation6.3% +9.6% Distribution89.6%** 7,613.1 6,944.8 669.3 794.7 * Eliminationsnotconsidered ** Constructionrevenuenotconsidered +19.2 12.9% NET REVENUE FROM DISTRIBUTION (2012) 2,162.9 6,943.8 1,815.1 6,150.1 199.3 237.8 24.5% 1,963.6 Network Use (TUSD)(Free + Concessionaires)9.4% 1,577.3 Residential41.1% 4Q11 4Q12 2011 2012 Others (Captive) 12.6% Construction Revenue Industrial6.8% Revenue w/out construction revenue Commercial 30.1%

  10. OperatingCostsandExpenses DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 4Q12 -12.4% 1,258.9 1,103.4 Nonmanageable (distribution):R$ 1,328.5 (82.6%) -46.7% 279.7 149.1 GenerationandCommercialization:R$ 131.3 (8.2%) 2011 4Q12 2012 4Q11 Manageable (distribution):R$ 149.1 (9.3%) * Eliminationsnotconsidered ** Constructionrevenuenotconsidered

  11. EBITDA EBITDA BY SEGMENT* 2012 CONSOLIDATED EBITDA (R$MN) +17.7% 1,456.2 Distribution 75,2% (EBITDA Margin: 17,4%) 1,237.8 +49.5% 483.9 323.6 Generation23,0% (EBITDA Margin: 76,4%) Commercialization 1,9% (EBITDA Margin: 9,5%) 4Q11 4Q12 2011 2012 *Eliminationsnotconsidered

  12. EBITDA EBITDA – 4Q11 / 4Q12(R$ MN) + 73.4% + 49.5% 386 366 617 133 484 356 32 324 (194) (356) (41) Otheroperational/ revenues Net Revenue Non-Managable Costs Managable Costs (PMSO) Provisions Adjusted EBITDA 4Q11 Regulatory Assets and Liabilities EBITDA4Q11 EBITDA4Q12 Regulatory Assets and Liabilities Adjusted EBITDA 4Q12

  13. EBITDA EBITDA – 2011 / 2012(R$ MN) + 34.5% + 17.7% 794 325 1,782 381 1,456 87 1,325 1,238 (175) (706) (75) Otheroperational/ revenues Net Revenue Non-Managable Costs Managable Costs (PMSO) Provisions Adjusted EBITDA 2011 Regulatory Assets and Liabilities EBITDA2011 EBITDA2012 Regulatory Assets and Liabilities Adjusted EBITDA 2012

  14. Net Income ADJUESTED NET INCOME 4Q11 / 4Q12 (R$ MN) + 61.8% + 21.3% 160 88 248 (53) 160 21 153 132 (68) (11) EBITDA Financial Result Taxes Others Adjusted Net Income 4Q11 Regulatory Assets and Liabilities 4Q11 4Q12 Regulatory Assets and Liabilities Adjusted Net Income 4Q12

  15. Net Income ADJUESTED NET INCOME 2011 / 2012 (R$ MN) + 59.9% + 24.0% 639 215 218 6 424 58 399 342 (85) (57) EBITDA Financial Result Taxes Others Adjusted Net Income 2011 Regulatory Assets and Liabilities 2011 2012 Regulatory Assets and Liabilities Adjusted Net Income 2012

  16. Dividends

  17. Indebtedness The pre payment of R$ 375 million in October reduced the cost of debt and extended the amortization schedule AMORTIZATION SCHEDULE* (R$ MN) NET DEBT 1,796 AverageTerm: 4,2 years 4,273.1 3,383.2 886 784 671 481 2.9 2.7 2014 2015 After2017 Dec/11 Dec/12 2013 2016 Net Debt / EBITDA * Principal only Others 2.0% COST OF DEBT TJLP 25.1% 11.08% 11.03% 9.84% 8.21% 5.30% 4.87% 4.25% US$/Euro 0.8% 2.24% CDI/Selic72.1% 2009 2010 2012 2011 Nominal Cost Real Cost *ConsideringHedge

  18. Investments CAPEX BREAKDOWN(R$ MN) 2012 CAPEX (R$ MN) Losses Combat 199.8 928.6 Quality Improvement 122.7 796.8 153.8 700.6 102.7 563.8 546.7 181.8 116.9 92.9 774.8 Develop. of Distribution System 215.7 694.1 518.8 Others 206.8 453.8 446.9 2012 2010 2011 2009 2008 Commerc./Energy Eficiency26.1 Generation Maintenance 23.7 Investments in Electric Assets (Distribution) Generation Projects 1.9

  19. Regulatory Framework • The Provisional Measure 579 was enacted on September 11, 2012 and thereafter converted into Law 12,783 providing for electric power concessions, reduction of sector charges and reasonable tariffs which although these have not directly affected Light, as its concessions will expire only in 2026, resulted in the following developments: • on January 24, 2013, Resolution issued by Aneel approved an average reduction of 19.63% in Light SESA’s tariffs. For residential consumers (low voltage), the reduction was 18.10%. The measure will have no impact on the company’s result or cash flow since it reflects an equal reduction in costs. • on the same date, the distribution of power plants energy quotas was ratified, which had their concession renewed: • (i) but lower to the distribution companies’ contracting needs, thus, causing an involuntary exposure, and only for Light it accounted for average 156 MW; and • (ii) made distribution companies to start sharing the hydrological risks, which before was only supported by generation companies • As of October 2012, an adverse hydrological situation was characterized in Brazil’s electricity sector, the basis of which is mainly hydric, enforcing the System National Operator to dispatch all the thermal power plants available in the system, thus significantly rising the costs of distribution companies by increasing fuel expenditures in availability agreements, increasing System Service Charges due to energy security and acquisitions on the spot market in order to answer that involuntary exposure.

  20. Regulatory Framework • On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of non-manageable costs related to thermal plant dispatch, involuntary exposure and hydrological risk not covered by the 2013 tariff, as follows: • Eletrobrás will transfer the resources of Energetic Development Accout (CDE) directly to the concessionaires on the same dates and to the same accounts as the respective monthly transfers of the Electricity Trading Chamber (CCEE) financial guarantees. • Aneel will publish the monthly dispatches with the amounts to be transferred by Eletrobrás via the CDE (energy development account). • System Service Charge (ESS) – The monthly transfer will be determined by the difference between the amounts settled in the CCEE and the tariff coverage defined in the last adjustment. • Involuntary Exposure associated with the quotas – The monthly CDE transfer will cover the difference between the difference settlement price (PLD) and the acquisition tariff of the repositioning amount recognized in Light’s last tariff adjustment. • Hydrological Risk - The net monthly amount settled in the CCEE will be transferred directly via the CDE. • The remaining energy purchase and ESS costs not covered by the decree, including fuel costs of availability contracts not included on tariffs, will continue going towards the formation of the regulatory assets and liabilities (CVA) to be determined in Light’s November/13 Tariff Revision. • The Public Hearing opened for regulating decree proposes a transfer rate until 3% of the balance of CVA, the rest will be payed "in cash" from CDE funds.

  21. ImportantNotice This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Company’s control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Company’s strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Company’s actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Company’s assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Company’s businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.

  22. Contacts João Batista Zolini CarneiroCFO and IRO Gustavo WerneckIR Manager + 55 21 2211 2560gustavo.souza@light.com.br www.light.com.br/ri

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