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Conference Call

Conference Call. 1 th Quarter 2014. Highlights. FINANCIAL. CDE FUNDS. OPERATING. Energy consumption increased by 7.8% between 1Q13 and 1Q14 due to higher temperatures in the quarter ; Captive Market growth 6.7% in 1Q14.

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Conference Call

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  1. ConferenceCall 1th Quarter 2014

  2. Highlights FINANCIAL CDE FUNDS OPERATING • Energy consumption increased by 7.8% between 1Q13 and 1Q14 due to higher temperatures in the quarter; Captive Market growth 6.7% in 1Q14. • Non-technical energy losses in the last 12 months came to 42.4% of billed energy in the low-voltage market, 0.2 p.p. up on the 12 months ended December 2013. In comparison with March 2013, there was a 2.5 p.p. decline; • Collections stood at 94.6% of billed consumption in 1Q14, 6.4 p.p. down on the same quarter last year; • Provisions for past due accounts (PCLD) represented 1.0% of gross billed energy, totaling R$25.3 million, 0.2 p.p. down in 1Q13; • Net revenue, excluding construction revenue, increased by 20.1% over 1Q13, reaching R$2,118.7 million; • Consolidated EBITDA came to R$452.9 million, 27.5% higher than in 1Q13; • Net income totaled R$180.5 million in 1Q14, 129.5% up year-on-year; • Consolidated net debt closed 1Q14 at R$5,341.8 million, with a net debt/EBITDA ratio of 2.90x; • Transfer of CDE funds to the distributors to settle energy purchase commitments with the CCEE; • The company recognized reduction of expenses with parcel A of R$181.2 million, R$556.7 million and R$423.1 million, respectively, for January, February and March, giving R$1,161.0 million for the quarter as a whole.

  3. EnergyConsumptionDistribution – Quarter TOTAL MARKET (GWh) ¹ +5.4% a.a. Industrial captive4.9% Free17.1% +7.8% 7,374 6,291 6,841 6,180 Others captives13.2% 28.3ºC Residential captive37.3% 27.8ºC 27.0ºC 26.9ºC Commercialcaptive 27.6% 1Q13 1Q14 1Q11 1Q12 1Note: To preserve comparability in themarketapprovedbyAneel in thetariffadjustmentprocess. thebilledenergyofthefreecustomer CSN hasbeenconsideredback.

  4. Total Market ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET – QUARTER +7.8% 7,374 6,841 +13.6% 1,257 1,269 +8.3% 2,752 2,423 2,267 2,093 -2.1% 233 215 +6.1% 1,330 1,359 6,117 5,572 1,025 966 55 53 2,034 1,877 1,000 970 970 913 359 360 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 OTHERS TOTAL RESIDENTIAL COMMERCIAL INDUSTRIAL FREE CAPTIVE

  5. Collection PCLD/Gross Revenue (Billed Sales) - 12 Months COLLECTION RATE BY SEGMENT Quarter 104.7% 101.0% 100.2% 97.2% 3.0% 2.8% -1.0 p.p. 94.6% 98.0% 95.4% 93.2% 1.8% Total Retail Large Clients Public Sector mar/11 mar/12 mar/1 3 1Q13 1Q14

  6. LossPrevention LOSS (12 MONTHS) INSTALLED METERS (Thousand Units) - 2.5% 44.9% 44.2% 43.7% 42.2% 42.4% 32.0% 8,647 8,748 8,552 467 8,582 8,352 432 109 102 351 5,953 5,905 5,738 6,029 5,955 79 227 358 122 330 30 7 272 197 2,793 2,614 2,618 2,629 2,647 115 Mar/13 Jun/13 Sep/13 Dec/13 2011 2012 2013 Mar-14 Mar/13 2010 Communities Technical losses GWh Non-technical losses GWh WithoutCommunities % Non-technical losses/ LV Market % Non-technical losses / LV Market - Regulatory

  7. LossesCombatActionsAPZ Results By March. theprogramcoverd 446 thousandcustomers in 27 APZs. whichones 22 hadtheresultscalculated: -29.5%

  8. Net Revenue NET REVENUE BY SEGMENT (1Q14)* Generation9.4% NET REVENUE (R$MN) +18.8% Distribution77.6%** 2,282 Commercialization 13.1% 1,922 164 157 * Eliminationsnotconsidered ** Constructionrevenuenotconsidered 6,602 1,765 2,119 NET REVENUE FROM DISTRIBUTION (1Q14) 1,834 Industrial (Captive) 5.3% Commercial(Captive) 30.0% 1Q14 1Q13 Others (Captive) 11.2% Construction Revenue Network Use (TUSD)(Free + Concessionaires)6.7% Revenue w/out construction revenue Residential(Captive) 46.8%

  9. CDE Fund Involuntary exposure together with unfavorable hydrological scenario and PLD in the ceiling, put the cash flow under pressure in the short term Aporte CDE -1Q14 (R$ MN) 1.161,0 (1.245,7) (84,6) Short-TermEnergy(Spot) Balance CDE FundTotal

  10. OperatingCostsandExpenses DISTRIBUTION PMSO COSTS (R$MN) COSTS (R$MN)* 1Q14 +2.1% 188 184 Non manageable (distribution**):R$ 1,227 (64.8%) Manageable (distribution):R$ 351 (18.5%) 1Q13 1Q14 Generation and Commercialization:R$ 315 (16.6%) * Eliminationsnotconsidered ** Constructionrevenuenotconsidered

  11. EBITDA EBITDA BY SEGMENT (R$ MN) +27.5% 453 355 44.0% 36.2% Generation and Commercialization Distribution 56.0% 63.8% 64.9% 1Q13 1Q14

  12. EBITDA Adjusted EBITDA – 1Q13 / 1Q14(R$ MN) - 4.7% + 27.5% (8) (217) 354 (13) (4) (20) (2) (18) 101 456 435 453 355 EBITDA1Q14 Regulatory Assets and Liabilities Net Revenue Non-Manageable Costs Equity Pikup Adjusted EBITDA 1Q13 Regulatory Assets and Liabilities EBITDA1Q13 Other operacional revenues Manageable Costs (PMSO) Adjusted EBITDA 1Q14 Provisions

  13. Net Income ADJUSTED NET INCOME 1Q13 / 1Q14 (R$ MN) +15.9% +129.5% (51) 60 (5) (12) 98 67 168 181 145 79 EBITDA Financial Result Taxes Depreciation Adjusted Net Income 1Q13 Regulatory Assets and Liabilities 1Q13 1Q14 Regulatory Assets and Liabilities Adjusted Net Income 1Q14

  14. Indebtedness U$/Euro 0.4% AMORTIZATION SCHEDULE* (R$ MN) TJLP13.5% IPCA 10.7% AverageTerm: 3.9 years Others 1.5% 1,017 899 811 779 494 565 450 441 450 CDI 73.9% After 2021 2016 2015 2018 2019 2020 2017 2014 2021 *ConsideringHedge * Principal only NET DEBT WithPensionFund COST OF DEBT 5,341.8 5,249.5 5,096.8 11.03% 10.01% 9.68% 8.21% 2.90 4.25% 3.55% 2.84 3.63% 2.73 2.24% 1Q14 2011 2013 2012 Mar/13 Dec/13 Mar/14 Nominal Cost Real Cost Net Debt / EBITDA

  15. Investments CAPEX BREAKDOWN(R$ MN) 1Q14 CAPEX (R$ MN) 1,055 929 Administration 3.3 Generation 3.5 845 797 154 701 Others 2.8 132 103 Commerc./Energy Eficiency 10.5 182 +7.9% 713 694 775 176 163 17 519 Losses Combat 48.9 36 158 127 1Q14 2014E 1Q13 2010 2013 2011 2012 Develop. of Distribution System 106.6 Investments in Electric Assets (Distribution)

  16. Dividends

  17. 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.

  18. Contacts João Batista Zolini CarneiroCFO and IRO Gustavo WerneckSuperintendent of Finance and Investor Relations +55 21 2211 2560gustavo.souza@light.com.br Mariana da Silva RochaIR Manager + 55 21 2211 2814mariana.rocha@light.com.br ri.light.com.br www.facebook.com/lightri twitter.com/LightRI

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