meeting with investors - barclays conference

7/30/2019 Meeting with Investors - Barclays Conference

1/42

C r r t Pr nt ti nC r r t Pr nt ti n

January 2013

January 2013


2/42

100% 100% 100%100% 100% 100%51% 100% 51% 20%

LightEnergia

S.A.

LightServios deEletricidade

S.A.

Light EscoPrestao deServios S.A.

LightcomComercializadorade Energia S.A.

ItaocaraEnergia

Ltda.

LightSolues emEletricidade

Ltda.

InstitutoLight

LightgerS.A.

AxxiomSolues

TecnolgicasS.A.

CR ZongshenE-Power

Fabricadora deVeculos Ltda.

Light S.A.(Holding)

25.5%

AmazniaEnergia

S.A.

Light HoldingsLight Holdings

RenovaEnergia S.A.

EBLCia de

EficinciaEnergtica

S.A

Distribution Generation Commercialization and Service System ElectricVehicles

Institutional

NorteEnergia S.A.

2

CentralElica

FontainhaLtda.

CentralElica

So JudasTadeu Ltda.

100% 100%21.99% 33%9.77%

GuanhesEnergia S.A.

100%51%


3/42

IntegratedNet Revenues 2011 R$ Billion

DistributionEnergy Consumption in Concession Area (2011) - GWh1

RankingsAmong the largest players in Brazil

54.590

50.404

45.101

29.139

25.593

22.932

15.8

12.8

9.8

7.8

6.25.4

33

Generation Private-owned CompaniesInstalled Hydro-generation Capacity (MW) 2011

Souce: Companies reports

Note: 1 Captive market + free clients

2 It doesnt consider the consumption of CSN and CSA

6.908

2.6542.241 2.210

1.828

866

2


4/42

PARATI

CEMIGFIP

REDENTOR

75%25%

6.41%19.23%

BTG

PACTUAL

SANTANDER

VOTORANTIM

BANCO DOBRASIL

28.57%

5.50%

28.57%

5.50%

28.57%

5.50%

14.29%

2.74%

Shareholders Structure

11 Board members: 8 from the controlling

group, 2 independents e 1 employees

nominated

A qualifying quorum of 7 members to

approve relevant proposals such as: M&Aand dividend policy

Indirect stake in blue

CEMIG RME LEPSA BNDESPAR MARKET

FIP LUCEREDENTORENERGIA

26.06% 13.03% 13.03% 13.46% 34.41%

100%13.03% 13.03%100%

96.80%

MINORITY

SHAREHOLDERS

3.20% 0.42%

Free Float47.9%

100%

25.64%*

FOREIGN NATIONAL

57.02% 42.98%

Percentage in blue: indirect stake in Light*12.61% (RME) + 13.03%(LEPSA)

Light S.A.

(Holding)

Controlling Shareholders52.1%

4


5/42

Corporate GovernanceCorporate Governance

General AssemblyGeneral Assembly

Fiscal CouncilFiscal Council

Board of DirectorsBoard of Directors

AuditorsCommittee

AuditorsCommittee

Governance andSustainability

Committee

Governance andSustainability

Committee

Human ResourcesCommittee

Human ResourcesCommittee

FinancesCommitteeFinances

CommitteeManagementCommittee

ManagementCommittee

Chief ExecutiveChief Executive

5

OfficerOfficer

Chief HR OfficerChief HR Officer

Chief BusinessOfficer

Chief BusinessOfficer

CorporateManagement

Officer

CorporateManagement

OfficerChief Legal OfficerChief Legal Officer

Chief Financialand Investor

Relations Officer

Chief Financialand Investor

Relations Officer

Chief DistributionOfficer

Chief DistributionOfficer

Chief EnergyOfficer

Chief EnergyOfficer

Joo B. Zolini Carneiro Jos Humberto Castro Evandro L. Vasconcelos Andreia Ribeiro Junqueira

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

Paulo Roberto R. Pinto

ChiefCommunications

Officer

ChiefCommunications

Officer

Luiz Otavio Ziza Valadares

LGSXYADR-OTC

Interim*


6/42

Distribution BusinessDistribution Business6th largest energy distribution company in Brazil (2011)6th largest energy distribution company in Brazil (2011)

LIGHTLIGHTLIGHT

66

4.0 million clients (serving 10 million people) Energy sales (2011) 22.932 GWh

70% of the consumption of Rio de Janeiro state (Brazils

2nd GDP)


7/42

ELECTRICITY CONSUMPTION

TOTAL MARKET (GWh) - Quarter

Energy Consumption

Distribution

INDUSTRIAL 7%INDUSTRIAL 7%INDUSTRIAL 7%INDUSTRIAL 7%OTHERSOTHERSOTHERSOTHERS15%15%15%15%

FREEFREEFREEFREE15%15%15%15%

+3.5%

5.2995.2995.2995.2995.1445.1445.1445.1444.9894.9894.9894.989

5.4865.4865.4865.486

+3.2%

Note: To preserve comparability in the market approved by ANEEL in the tariff adjustmentprocess. the billed energy of the free customers Valesul, CSN and CSA were excluded in viewof these customers planned migration to the Basic Network.

7

RESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIAL33%33%33%33%

COMMERCIALCOMMERCIALCOMMERCIALCOMMERCIAL30%30%30%30%

21.7C21.7C21.7C21.7C22.4C22.4C22.4C22.4C

3Q113Q113Q113Q113Q103Q103Q103Q103Q093Q093Q093Q09

22.1C22.1C22.1C22.1C21.7C21.7C21.7C21.7C

3Q123Q123Q123Q12


8/42

Total Market

ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET 3rd QUARTER+3.5%

4.6454.6454.6454.645

5.2995.2995.2995.299

740740740740 840840840840

5.4865.4865.4865.486

+13.3%

1.5951.5951.5951.5951.8071.8071.8071.807

-4.3%

1.8821.8821.8821.882 1.8011.8011.8011.801

FREECAPTIVE

RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL

3Q113Q113Q113Q11 3Q123Q123Q123Q12 3Q113Q113Q113Q11 3Q123Q123Q123Q12 3Q113Q113Q113Q11 3Q123Q123Q123Q12 3Q113Q113Q113Q11 3Q123Q123Q123Q12 3Q113Q113Q113Q11 3Q123Q123Q123Q12

4.5594.5594.5594.559.

810810810810 847847847847

854854854854

45454545 47474747

894894894894

1.4401.4401.4401.4401.6271.6271.6271.627

155155155155

180180180180.

427427427427 370370370370

968968968968

541541541541614614614614

984984984984

8


9/42

Prospects for State of Rio

Investments of R$ 211.5 billion in the State of Rio de JaneiroPeriod 2012-2014

OilR$ 107.7 bn50.9%

TourismR$ 1.8 bn0.9% Others

R$ 1.9 bn0.9%

Olimpic FacilitiesR$ 8.6 bn4.1%

99Source: Firjan (Industry Federation of Rio de Janeiro)

InfrastructureR$ 51.0 bn24.1%

Transformation IndustryR$ 40.5 bn19.1%


10/42

Economic activity leading to more demand

-Nestl (3MW)

-RHI (5MW)

-Lavazza (3MW)-Ajebras (5MW)

-Reluz (ND)-Embelleze (5MW) -MRS (ND)

-AMBEV (ND)-NeoBus (10MW)

-Coquepar (42MW)-Procter & Gamble (10MW)-Alpargatas (ND)

The State of Rio de Janeiro will attract $ 250 billion as investments by 2016

10

Rio de Janeiro

-Maracan (ND)-Porto Maravilha (ND)-Morar Carioca (ND)-Aeroporto Tom Jobim (5MW)-Estaleiro Inhauma (ND)-Atento (2MW)-Expanso Nova Amrica (4MW)-Expanso Norteshopping (3MW)

-Petrobras (15MW)-CSN (100MW)-Gerdau (30MW)-Usiminas (20MW)-LLX (40MW)-Base Naval(25MW)-Hotel Comfort (3MW)

-Gerdau (90MW)-Shop.CampoGde(3MW)- Rolls Royce (3MW)

-Bio Manguinhos (ND)-Hermes (3MW)-Votorantin (ND)-Ongoing (ND)-Bunge (ND)-AMBEV (2MW)

-GE (6MW)-Shop. Metropolitano (10MW)

Source: Associao Brasileira de

Municpios ABM website.

CentroTecnolgicoFundo (ND)

-Shopping Village Mall (7MW)- Edifcio Tishman Speyer (5MW)- Expanso Via Parque (2MW)- Casa Granado (3.5MW)- Hospital So Lucas (4MW)- Metr Ipanema (8MW)- Flow Serve (11MW)- Alog Data Center (12MW)


11/42

Collection

COLLECTION RATE

12 MONTHS

COLLECTION RATE BY SEGMENT

QUARTER

97.7%97.7%97.7%97.7% 97.8%97.8%97.8%97.8% 96.3%96.3%96.3%96.3%93.0%93.0%93.0%93.0%

102.2%102.2%102.2%102.2% 99.7%99.7%99.7%99.7%106.2%106.2%106.2%106.2%

99.8%99.8%99.8%99.8%

97.2%97.2%97.2%97.2%98.3%98.3%98.3%98.3%

11

3Q113Q113Q113Q11 3Q123Q123Q123Q12

PUBLIC SECTORLARGE CLIENTSTOTAL RETAIL

Sep/11Sep/11Sep/11Sep/11 Sep/12Sep/12Sep/12Sep/12


12/42

Loss prevention

Reflects exclusion of longterm delinquent customersfrom the billing system,

according to Resolution 414by Aneel.

Non Technical Losses Distribution(5.615 GWh)

LOSS (12 MONTHS)

42.2%42.2%42.2%42.2%

40.7%40.7%40.7%40.7%41.2%41.2%41.2%41.2%

33.8%33.8%33.8%33.8%

5.3165.3165.3165.3165.2295.2295.2295.229

7.5827.5827.5827.5827.6277.6277.6277.627 7.6657.6657.6657.665

40.4%40.4%40.4%40.4%

5.2475.2475.2475.247

43.1%43.1%43.1%43.1%

5.6155.6155.6155.615

8.0478.0478.0478.047

5.4575.4575.4575.457

7.8397.8397.8397.839

12

RiskyRiskyRiskyRisky AreaAreaAreaArea NonNonNonNon----RiskyRiskyRiskyRisky AreaAreaAreaArea

37%

63%

Technical losses GWhTechnical losses GWhTechnical losses GWhTechnical losses GWh

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

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

Sep/11Sep/11Sep/11Sep/11

NonNonNonNon----technical losses GWhtechnical losses GWhtechnical losses GWhtechnical losses GWh

Dec/11Dec/11Dec/11Dec/11 Jun/11Jun/11Jun/11Jun/11Mar/11Mar/11Mar/11Mar/11 Sep/12Sep/12Sep/12Sep/12

2.3282.3282.3282.328 2.3492.3492.3492.3492.3352.3352.3352.335 2.4322.4322.4322.4322.3812.3812.3812.381


13/42

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

Control room

13

Actual grid Shielded grid

3m

9m

Lowvoltage

MechanicalMeter

Mediumvoltage

Display

Lowvoltage

Mediumvoltage

Centralizedmeter


14/42

New Technology Program

Meters Installed(Thousands)

110110110110

38383838

38383838208208208208

283283283283

245245245245

14

Monitoring, reading, cutting andreconnection of customers telemetryMCC (Measuring Center Centralized)

Prioritization in areas of high losses and

aggressiveness to the network

Technology hindering inappropriateinterference in networks

(ITRON) (LANDIS GYR.CAM andELSTER)

CENTRALIZEDINDIVIDUAL

72727272

38383838

2010201020102010 2011201120112011 Sep /12Sep /12Sep /12Sep /12


15/42

Losses (before): 26%

Losses (current): 7%

New Technology Results - Individual

15


16/42

New Technology Results - Centralized

Losses (before): 48%

Losses (current): 14%

1616


17/42

Area: Nova Cidade Neighborhood - Nilpolis

Zero Losses Area

FEATURES LV MV TOTAL

CLIENTS 10,083 3 10,086

NETWORK (KM.) 50 23 73

TRANSFORMER (QTY.) 107

POWER (MVA) 12,9

17

RESULTS 2010 2011

COLLECTION (R$ MN) 8.9 10.3

NON-TECHNICAL LOSSES 41.7% 7.4%

Nov/10

DeC/11


18/42

Program Gains An example

300 kWh

REALCONSUMPTION

NEW METERINSTALLATION

200 kWh

LOST ENERGY

ENERGY SAVED

100 kWh

BILLED CONSUMPTION

18

100 kWh

BILLED

CONSUMPTION 100 kWh

OTHER EFFECTS (BY-PRODUCTS):

CAPEX GOES TOTHE RAB

BAD DEBTPROVISIONREDUCTION

OPERATIONALCOSTS

REDUCTION


19/42

Transformation of risky areas

19


20/42

Pacified Communities

AlemoAlemo

Santa Marta Before After

Clients 73 1.605

Losses 90% 6%

Delinquency 70% 2%

20

BatanBatan

Cidade de DeusCidade de Deus

S. MartaS. Marta

Mang.e Babil.Mang.e Babil.Tabaj.e Cabr.Tabaj.e Cabr.

FormigaFormiga

AndaraAndara

MacacosMacacos

SalgueiroSalgueiro

Cantag.e Pavoz.Cantag.

e Pavoz.

Borel

e Casabranca

Borel

e Casabranca

64.7 thousand clientsinside pacified

communities with new

meters and network


21/42

Generation BusinessGeneration Business


22/42

Installed Capacity

HPP Ilha dos Pombos187 MW

RJ

Paraiba do Sul River

HPP Ilha dos Pombos

Installed Capacity

868 MW

100%

100%

LajesComplex

51%

SHP Paracambi13 MW

22

HPP Santa Branca

56 MW

HPP Fontes Nova

132 MW

HPP Underground

Nilo Peanha - 380 MW

HPP Pereira Passos

100 MW

HPP Santa Branca

100%100%100%


23/42

Re-pricing of existing energy

475

53

340

52

206 228 259 267 272 282 282 282

25 25 25 25 25 25 25 25 25 25

553 539 535 535 535 535 535 535 535 535

Conventional Energy BalanceAssured energy (MW average)

23

Contracted Energy (Regulated) Contracted Energy (Free) HedgeAvailable Energy

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

122

304 282 251 243 238 228 228 228

Average saleprice to free

market

(R$/MWh)

128 135 148 151 155 157 157 157 157 157

Database january. 2012 Average price to Regulated Market (dec/11): R$ 75/MWh


24/42

SP

RJ

Paraiba do Sul River

LajesComplex

HPP Itaocara

Installed Capacity: 151 MWThe construction is to be startedby the end of 2012.

Generation Expansion

24

SHP Lajes

Installed Capacity: 17 MWThe construction is to be started by the 2nd half of2012.

Operational Start: 2nd half of 2014; InstallationLicense already issued.

2nd half of 2015.Preliminary License alreadyissued.


25/42

RR

Participaes(1)

BNDESPAR

12.1%

InfraBrasil

15.2%

Santander

3.0%

FIP Caixa

Ambiental

7.1%

FIP Santa

Barbara

6.1%

Outros;

4.0%

By the middle of 2011, Light signed an investment agreement of $360 million and the PPA (Power PurchasedAgreement) of 400MW of installed capacity to have 25.9% stake at Renova. This year BNDESPAR is becoming

a shareholder after a capital increase in Renova. Light keeps a 21.99% stake.

Light21.99%

RRParticipaes

21.99%

ControllingShareholders64.6% CS

Light

32.3% CS

0% PS

Shareholder StructureDecember 2012

Auctions Performance

The biggest winner in the Reserver Energy

Auction of 2009

The biggest winner in the Reserver Energy

Auction of 2010

2nd largest winner in the Auction A-3 of 2011

Companys Portfolio

41.8 MW of SHPs in operation under the

Renova

8.5%

25(1) Share of RR Participacoes SA out of the control block

RR Participaes

32.3% CS

0% PS

Location

Wind Farms

Inventory (SHPs)

Basic Projects (SHPs)

PROINFA contract

294.4 MW of wind energy under construction to

start the operation in Jul/2012

808.3 MW of contracted wind energy to be

delivered between 2013 until 2017

Pipeline 5.8 GW under development

Projects in the same area providing synergies and

scale gains


26/42

Renova Contracts

Contract

Sites

Term

(years)

Index

OperationStart

up

(Estimated)

InstalledCapac

ity

(MW)

AverageLoad

Factor(%)

EstimatedEner

gy

(MWaverage)

CAPEX/MW

installed

(R$MN)

Loan

Tariff

(R$/MW)

SHPP 3 20 IGPM

Inoperation

since2008

41.8 61.3 24.2 4.901

BNB

Contracted 182.06

LER 2009 14 20 IPCA

Inoperation

sinceJul 2012

293.6 50.8 148.9 (*) 3.996BNDES

Contracted160.65

26* Does not considered the network basic losses.

LER 2010 6 20 IPCASep

2013162.0 52.7 86.8 (*) 3.878

BNDES

Eligibility130.76

Y-3 2011 919 yearsand 10months

IPCAMar -2014

212.8 50.5 108.1 (*) 3.245BNDESEligibility

100.91

Y-5 2012 1 20 IPCAJan 2017

22.4 - - - - 90.07

PPA Light 1 10 (E) 20 IPCASep -2015

200.0 50.5(E) 100 (E) 3.245 - -

PPA Light 2 10 (E) 20 IPCASep -2016

200.0 50.5 (E) 100 (E) 3.245 - -


27/42

Belo Monte Overview

Technical data on the concession:

Concession period 35 years

End of concession August 25, 2045

Technical data on the project:

Installed capacity - 11.233 MW

Main engine room 11.000 MW

Auxiliary engine room 233 MW Assured Energy (Average MW) 4.571 MW

Reservoir 516 Km

Flooded area/generation ratio of 0.05 Km/MW

5.000 families affected

Estimated project cost (April 2010) R$ 25.8 billion

Publicsector

49,98%

Othersprivates

30,25%

AmazniaEnergia9,77%

Self prod.10,00%

Norte Energia S.A. Shareholders Profile

27

51.0% CS0.0% PS

49.0% CS100.0% PS

Amaznia EnergiaParticipaes S.A

Norte Energia S.ANorte Energia S.A(Belo Monte)(Belo Monte)

9.77%

74.5% of total stock 25.5% of total stock

Other Informations:

Amaznia Energia will own 9.77% of the enterprise.

Construction works estimated to take 9 years.

Transaction does not affect Light s dividend flow

BNDES loan ensures leverage at low cost on favorable terms.

Tender 30 years, fixed installments. 85% of items financiable. PSI line.

Amaznia Energias equity in the project estimated at R$ 150 million (Apr.

2010), to be disbursed over 6 years.

Expansion of generation portfolio:

Increases Lights total generation portfolio by 280 MW

Terms for sale of electricity generated already set.

Regulated Market: 70%; Free Market: 20%; Self-producers: 10%.


28/42

Guanhes

TOTAL CAPEX

R$ Million

PCHDores de

GuanhesSenhora do

Prto Jacar Fortuna II Total

Installed Capacity(MW) 14 12 9 9 44

Assured Energy(MWaverage) 8 6.77 5.15 5.11 25.03

ANEEL Authorization 11/22/2002 10/08/2002 10/29/2002 12/21/2001

Operation - Start up Dec/13 Dec/13 Feb/14 Oct/13

Authorization Term 30 years (with renewal for 20 years)

269.2

60.2

57.8

151.2

Equity

Debt

Light Energia

Cemig GT

BNDES

28

N G i P j


29/42

Installed Capacity (MW)

Investments in Renova. Belo Monte and Guanhes. in line with our strategy

of growing in the generation business

New Generation Projects

+ 59.3%

1.5001.5001.5001.500

171171171171

28028028028022222222

InstalledCapacity

Capacity AfterExpansion

Considering 51% stake

Considering 21.9% stake

Considering 2.5% stake

29

(+) BeloMonte

SHPParacambi

SHPLajes

HPPItaocara (+) Guanhes(+) Renova

1313131374*74*74*74* 9999

855855855855

(+) RenovaCurrentCapacity

* 9 MW SHP + 65 MW Wind Farm (since jul/12)

942942942942


30/42

ResultsResults

N t R


31/42

Net Revenue

NET REVENUE (R$MM)

NET REVENUE BY SEGMENT (3Q12)*

+5.5%

+6.2%

470.0470.0470.0470.0556.9556.9556.9556.9

5.129.75.129.75.129.75.129.75.450.25.450.25.450.25.450.2

GenerationGenerationGenerationGeneration 6.8%6.8%6.8%6.8%

DistributionDistributionDistributionDistribution 87.9%**87.9%**87.9%**87.9%**

ComercializationComercializationComercializationComercialization 5.3%5.3%5.3%5.3%

* Eliminations not considered* Eliminations not considered* Eliminations not considered* Eliminations not considered

31

NET REVENUE FROM DISTRIBUTION (3Q12)

CommercialCommercialCommercialCommercial 30.1%30.1%30.1%30.1%

IndustrialIndustrialIndustrialIndustrial 7.67.67.67.6%%%%

OthersOthersOthersOthers ((((CaptiveCaptiveCaptiveCaptive)))) 13.1%13.1%13.1%13.1% Network Use (TUSD)Network Use (TUSD)Network Use (TUSD)Network Use (TUSD) 10.310.310.310.3%%%%((((FreeFreeFreeFree ++++ ConcessionairesConcessionairesConcessionairesConcessionaires))))

ResidentialResidentialResidentialResidential 33338.9%8.9%8.9%8.9%

Construction RevenueConstruction RevenueConstruction RevenueConstruction Revenue

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

1.657.11.657.11.657.11.657.11.748.01.748.01.748.01.748.0

3Q123Q123Q123Q123Q113Q113Q113Q11

170.3170.3170.3170.3

1.426.51.426.51.426.51.426.5 1.577.71.577.71.577.71.577.7

230.6230.6230.6230.6

9M129M129M129M129M119M119M119M11

4.572.84.572.84.572.84.572.84.980.24.980.24.980.24.980.2

10.6%

8.9%

** Construction revenue not considered** Construction revenue not considered** Construction revenue not considered** Construction revenue not considered

O ti C t d E


32/42

Operating Costs and Expenses

ManageableManageableManageableManageable((((distributiondistributiondistributiondistribution):):):): R$R$R$R$ 300.2300.2300.2300.2((((21.0%)21.0%)21.0%)21.0%)

NonNonNonNon manageablemanageablemanageablemanageable((((distributiondistributiondistributiondistribution):):):): R$R$R$R$ 1.003.11.003.11.003.11.003.1

DISTRIBUTION MANAGEABLE COSTS (R$MN)

COSTS (R$MN)*

3Q12

312.5312.5312.5312.5300.2300.2300.2300.2

-4.0%

974.0974.0974.0974.0 951.8951.8951.8951.8

-2.3%

32

GenerationGenerationGenerationGeneration andandandandCommercializationCommercializationCommercializationCommercialization:::: R$R$R$R$ 127.4127.4127.4127.4((((8.98.98.98.9%)%)%)%)

....

* Eliminations not* Eliminations not* Eliminations not* Eliminations not

consideredconsideredconsideredconsidered

R$ MN 3Q11 3Q12 Var % 9M11 9M12 Var %

PMSO 149.0 178.5 19.8% 496.9 516.0 3.8%

Provisions 83.0 52.3 -36.9% 242.6 222.9 -8.1%

PCLD 72.2 39.3 -45.5% 216.0 173.2 -19.8%

Contingencies 10.8 13.0 20.4% 26.6 49.7 87.1%

Depreciation 80.6 69.3 -14.0% 234.5 212.9 -9.2%

Total 312.5 300.2 -4.0% 974.0 951.8 -2.3%

3Q123Q123Q123Q123Q113Q113Q113Q11 9M129M129M129M129M119M119M119M11

EBITDA


33/42

EBITDA

CONSOLIDATED EBITDA (R$MN) EBITDA BY SEGMENT*

3Q12

GenerationGenerationGenerationGeneration 29.5%29.5%29.5%29.5%(EBITDA(EBITDA(EBITDA(EBITDA MarginMarginMarginMargin:::: 72.1%)72.1%)72.1%)72.1%)DistributionDistributionDistributionDistribution 67.9%67.9%67.9%67.9%

(EBITDA(EBITDA(EBITDA(EBITDA MarginMarginMarginMargin:::: 12.9%)12.9%)12.9%)12.9%)

269.5269.5

+12.4%

959.1959.1959.1959.1915.5915.5915.5915.5

+4.8%

33

CommercializationCommercializationCommercializationCommercialization 2.6%2.6%2.6%2.6%(EBITDA(EBITDA(EBITDA(EBITDA MarginMarginMarginMargin:::: 8.1%)8.1%)8.1%)8.1%)

*Eliminations not considered*Eliminations not considered*Eliminations not considered*Eliminations not considered

......

3Q113Q113Q113Q11 3Q123Q123Q123Q12 9M119M119M119M11 9M129M129M129M12

EBITDA


34/42

EBITDA 9M11/9M12(R$ MN)

EBITDA

+18.9%

+4.8%

971 916 959

1.154

55

407

(350) (34)

20

194

34

EBITDAEBITDAEBITDAEBITDA9M119M119M119M11

EBITDAEBITDAEBITDAEBITDA

9M129M129M129M12

NetNetNetNetRevenueRevenueRevenueRevenue

NonNonNonNon----ManagableManagableManagableManagable

CostsCostsCostsCosts

ManagableManagableManagableManagableCosts (PMSO)Costs (PMSO)Costs (PMSO)Costs (PMSO)

ProvisionsProvisionsProvisionsProvisions RegulatoryRegulatoryRegulatoryRegulatory

Assets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

AdjustedAdjustedAdjustedAdjustedEBITDAEBITDAEBITDAEBITDA

9M9M9M9M11111111

AdjustedAdjustedAdjustedAdjusted

EBITDAEBITDAEBITDAEBITDA9M9M9M9M12121212

RegulatoryRegulatoryRegulatoryRegulatoryAssets andAssets andAssets andAssets andLiabilitiesLiabilitiesLiabilitiesLiabilities

Net Income


35/42

Net Income

NET INCOME 9M11/9M12(R$ MN)

246246246246 44444444 33333333264264264264

128128128128 392392392392

35

9M9M9M9M11111111 9M9M9M9M12121212EBITDAEBITDAEBITDAEBITDA FinancialFinancialFinancialFinancial

ResultResultResultResult

TaxesTaxesTaxesTaxes OthersOthersOthersOthersAdjustedAdjustedAdjustedAdjustedNetNetNetNet

IncomeIncomeIncomeIncome9M9M9M9M11111111



AdjustedAdjustedAdjustedAdjustedNetNetNetNet

IncomeIncomeIncomeIncome9M9M9M9M12121212

210210210210

(34)(34)(34)(34)

Dividends


36/42

PAYOUT AND DIVIDEND POLICYDIVIDENDS AND DIVIDEND YIELD

100%100%100%100% 100%100%100%100%

76.3%76.3%76.3%76.3%81.0%81.0%81.0%81.0%

100%100%100%100%

554554554554595595595595

795795795795

556556556556

12.4%12.4%12.4%12.4%11.6%11.6%11.6%11.6%

9.5%9.5%9.5%9.5%

16.2%16.2%16.2%16.2%

8.7%8.7%8.7%8.7%

87878787

Dividends

439439439439

97.2%97.2%97.2%97.2%

36

Dividends (R$ MN)Dividends (R$ MN)Dividends (R$ MN)Dividends (R$ MN) Dividend Yield*Dividend Yield*Dividend Yield*Dividend Yield*

Based on the closing price of the day before the announcement Based on Net Income of the year. before IFRS adjustments

Interest on Equity (R$ MN)Interest on Equity (R$ MN)Interest on Equity (R$ MN)Interest on Equity (R$ MN)

2007200720072007 2008200820082008 2009*2009*2009*2009*

PayoutPayoutPayoutPayout

50%50%50%50%

2010201020102010

Dividend PolicyDividend PolicyDividend PolicyDividend Policy

2011201120112011

Note: Profit Reserve existing in the Balance of 12/31/2011: R$ 163 million.

2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012

87878787

469469469469

9M129M129M129M12

352352352352

Indebtedness leverage


37/42

Indebtedness leverage

Net Debt (R$ MM) and Net Debt / EBITDA

InvestmentGrade(brA)

3.3833.3833.3833.383

Rating(brA + )

Rating(Aa2.br)

Rating(AA-(bra))

Dec/11

3.6223.6223.6223.622

37 Net debt = total debt (excludes pension fund liabilities) cash

Net DebtNet DebtNet DebtNet Debt Net Debt/ EBITDANet Debt/ EBITDANet Debt/ EBITDANet Debt/ EBITDA

1.5801.5801.5801.580

2008200820082008

1.6371.6371.6371.637

2009200920092009

1.9471.9471.9471.947

2010201020102010

1.11.11.11.1 1.21.21.21.2 1.21.21.21.2

2011201120112011

2.72.72.72.7

Sep/12Sep/12Sep/12Sep/12

2.82.82.82.8

Indebtedness


38/42

Indebtedness

Average Term: 3.7 years

AMORTIZATION SCHEDULE* (R$ MN)NET DEBT

3.143.53.143.53.143.53.143.5

3.621.63.621.63.621.63.621.6

2.52.52.52.52.82.82.82.8

SepSepSepSep/12/12/12/12SepSepSepSep/11/11/11/11 2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016201620162016 After 2016After 2016After 2016After 2016

198198198198

582582582582

832832832832

754754754754

8558558558551.4771.4771.4771.477

38

NominalNominalNominalNominal CostCostCostCostRealRealRealReal CostCostCostCost

* Principal only* Principal only* Principal only* Principal only

COST OF DEBT

201120112011201120102010201020102009200920092009

3.09%3.09%3.09%3.09%

8.548.548.548.54%%%%

5.30%5.30%5.30%5.30%

9.84%9.84%9.84%9.84%

4.87%4.87%4.87%4.87%

11.08%11.08%11.08%11.08%

4.51%4.51%4.51%4.51%

11.01%11.01%11.01%11.01%

SepSepSepSep/12/12/12/12

Net Debt / EBITDANet Debt / EBITDANet Debt / EBITDANet Debt / EBITDA

* Considering* Considering* Considering* Considering HedgeHedgeHedgeHedge

CDI/SelicCDI/SelicCDI/SelicCDI/Selic74.2%74.2%74.2%74.2%

TJLPTJLPTJLPTJLP23.5%23.5%23.5%23.5%

OthersOthersOthersOthers2.02.02.02.0%%%%

US$/EuroUS$/EuroUS$/EuroUS$/Euro0.4%*0.4%*0.4%*0.4%*

Investments


39/42

Investments

CAPEX BREAKDOWN(R$MN)

9M12

CAPEX (R$MN)

+32.5%

563.8563.8563.8563.8546.7546.7546.7546.7

928.6928.6928.6928.6

700.6700.6700.6700.6

527.8527.8527.8527.8592.7592.7592.7592.7

-10.9%

85.185.185.185.145.845.845.845.892.992.992.992.9 116.9116.9116.9116.9

181.8181.8181.8181.8758.7758.7758.7758.7

169.9169.9169.9169.9

QualityQualityQualityQuality

Develop. ofDevelop. ofDevelop. ofDevelop. ofDistributionDistributionDistributionDistribution

SystemSystemSystemSystem

OthersOthersOthersOthers

59.659.659.659.6

GenerationGenerationGenerationGenerationMaintenanceMaintenanceMaintenanceMaintenance

11.511.511.511.5GenerationGenerationGenerationGenerationProjectsProjectsProjectsProjects

1.71.71.71.7

39

Investments in Electric Assets (Distribution)Investments in Electric Assets (Distribution)Investments in Electric Assets (Distribution)Investments in Electric Assets (Distribution)

20102010201020102009200920092009 2011201120112011 9M129M129M129M129M119M119M119M11

507.6507.6507.6507.6

482.0482.0482.0482.0

453.8453.8453.8453.8446.9446.9446.9446.9

....

2008200820082008LossesLossesLossesLossesCombatCombatCombatCombat156.4156.4156.4156.4

mprovemenmprovemenmprovemenmprovemen97.997.997.997.9

....

Why Invest in Light?Why Invest in Light?


40/42

Major upcoming events Integration of favelas Pro-business environment New plants investments Expansion of the existing ones

Market growth

EconomicTransformation

in theConcession Area

Progress in the Technology

New PPAs starting in 2013and 2014 Revenues increase with noaditional costs.Very active trading subsidiary

Repricing ofExisting Energy

Listed in Novo Mercado of

Why Invest in Light?Why Invest in Light?

4040

New network and meters in the

pacified favelasSmart metering developmentZero Losses Area Program

Energy

LossesReduction

Investment in Renova. BeloMonte and Guanhes (total of548 MW) SHP Paracambi OperationalStartSHP Lajes under construction.

Growth in theGenerationBusiness

Board Committees very active

Included in the SustainabilityIndex (ISE) of Bovespa for thefifth year.

Best-in-Class

CorporateGovernance

Sound Dividend Policy:minimum 50% of net income;

Average payout over last fiveyears: 91%

Dividend trackRecord

Important NoticeImportant Notice


41/42

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, hydrologicalconditions, 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

pp

41

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 canelapse 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.

Contacts


42/42

Joo Batista ZoliniCarneiroCFO and IRO

Gustavo WerneckIR Manager+ 55 21 2211 2560

[email protected]

42

www.light.com.br/ri

meeting with investors - barclays conference

Documents