Corporate Presentation

BTG Pactual V LatAm CEO Conference

October 2014
Light Holdings
Diversified structure which encompasses the distribution, generation and
commercialization segments.
2
4
5
6
7
Light in numbers
Distribution
RJ State
Concession
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%
1
IBGE (2010)
3
Amaznia Energia

Renova

Guanhes Energia
Generation
Complexo de Lajes
5
HPP Ilha dos Pombos
SHPP Paracambi
HPP Santa Branca
1
2
3
4
6
7
Rankings
Among the largest players in Brazil
INTEGRATED
Net Revenues 2013* R$ Billion
GENERATION PRIVATE-OWNED COMPANIES
Installed Hydro-generation Capacity (MW) 2013
DISTRIBUTION
Energy Consumption in Concession Area** (GWh) - 2013

4
15.6
10.6
9.2
7.1
14.6
5.560
2.652
2.241
2.219
1.799
896
***
1 Source: Companies reports
2 Source: Relatrio do Sistema de Apoio
a ANEEL
* Construction Revenue Included
** Captive Market
*** Considers the 9 MW of Renovas SHPPs
and 19 MW of Brasil PCH

15.6
10.6
9.2
7.4
7.1
14.6
37,767
25,777
22,926
21,783
20,391
15,634
5,560
2,652
2,241
2,219
1,799
896
Shareholders Structure
Efficient combination of solid industry and financial players
5

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&A
and dividend policy


Corporate Governance
Decision process assures transparency and value creation
6
LGSXY
ADR-OTC
General Assembly
Fiscal Council
Board of Directors
Auditors
Committee

Governance and
Sustainability
Committee

Human
Resources
Committee
Finances
Committee

Management
Committee

Chief Executive
Officer
Corporate
Management 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
Chief
Communications
Officer
Luiz Otavio Ziza Valadares
Interim*
Chief Financial and
Investor Relations
Officer
Chief Legal Officer
Chief HR Officer
Chief Distribution
Officer
Chief Energy Officer
Chief Business
Officer
7
Others captives
13.6%
Commercial
captive
27.6%
Residential
captive
35.2%
Industrial
captive
5.1%
Free
18.6%
+5.5%
1H12 1H11
+5.1% p.a.
1H13 1H14
13,145
11,934
25.7C
11,960
13,869
25.2C
25.1C
25.1C
Energy Consumption
Distribution Semester
TOTAL MARKET (GWh)
1
Note: 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.
1,806
8
Market Breakdown
ELECTRICITY CONSUMPTION (GWh)
TOTAL MARKET SEMESTER
FREE CAPTIVE
1H13 1H14
3,625
701 705
+5.5%
10,526 11,292
13,145
2,618
2,576
13,869
+4.2%
1,880
1,909
103
109
1,990
5.7%
4,055
430
457
4,284
2,787
2,086 2,010
2,715
+11.1%
4,395
4,880
-2.6%
3,827
RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL
1H13 1H14 1H13 1H14 1H13 1H14 1H13 1H14
Losses and Collection

9
LOSS (12 MONTHS)
99.5%
98.7%
Jun-13 Jun-14
2Q12 2Q1 4 2Q13
3.4%
2.5%
1.7%
-0.8 p.p.
Jun/13 Sep/13 Mar/14 Jun/14 Dec13
43.7%
5,738
2,614
8,552
44.2%
5,972
2,843
8,352
41.9%
5,953
2,629
8,815
5,905
2,647
8,582
- 2.3 p.p.
42.2%
42.4%
5,955
2,793
8,748
% Non-technical
losses/ LV Market
Non-technical losses GWh Technical losses GWh
COLLECTION RATE
12 MONTHS
PBD/GROSS REVENUE
(BILLED SALES) - QUARTER
Energy Losses Combat
Efficient combination between technology and effective management
ELECTRONIC METERS INSTALLED
(in thousands)
Outisde of Communities
Communities
Clientes comerciais e
residenciais
(Baixa tenso)
4.100.000
10
2009 2010 2011 2012 2013
351
2010 2011 2013 2012
30
7
79
102
227
122
432
197
115
272
330
Jun-14
116
509
393
CLIENTS ENERGY AND STATUS
Retail and residential clients
(Low Voltage)
4,100,000
Low Voltage
Largest Clients
22,000
Large
Clients
(hight and
med 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
Technology: Centralized Measuring
Use of new technologies in areas with a high level of losses
Display
11
Focused in areas with 10,000 to 20,000 clients with high level of losses and delinquency;
Fully-dedicated teams of technicians and commercial agents;
Results constantly and accurately monitored by Light;
Result-linked remuneration for services provided;
29 units implemented with 505 thousand
clients (12% of total clients);
200 thousands additional clients per year.
Zero Losses Area (APZ)
Project: Light Legal
12
ELECTRONIC
METERS
WORKFORCE
MANAGEMENT
PARTNERSHIP WITH THE STATE
GOVERNMENT
Evolution of APZs Results
Significant loss reduction and increasing collection rate
13
Incio da
Operao
Incio da
Operao
Before
50.2 %
20.7%
89.2%
95.9%
Before
96.0%
98.2%
97.9%
98.3%
23.6%
22.5%
21.2%
M
a
r
/
1
4

J
u
n
/
1
4

M
a
r
/
1
3

J
u
n
/
1
3

S
e
p
/
1
3

M
a
r
/
1
4

M
a
r
/
1
3

J
u
n
/
1
3

S
e
p
/
1
3

-30.2%
+6.8%
D
e
c
/
1
3

99.5%
D
e
c
/
1
3

20.3%
J
u
n
/
1
4

20.0%
APZ COLLECTION APZ LOSSES
Regulatory Allowance for Non-Technical Losses
Higher recognition of losses linked to targets achievement
Additional revenues to be invested in losses combat and booked as
Special Obligations (ex-RAB)
31,80%
40,41%
40,41%
31,27%
30,95%
30,53%
30,11% 29,69%
39,92%
38,33%
34,49%
30,60%
29,40%
28,20%
27,01%
25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
2013 2014 2015 2016 2017 2018
14
31,80%
40,41%
40,41%
31,27%
30,95%
30,53%
30,11%
29,69%
39,92%
38,33%
34,49%
30,60%
29,40%
28,20%
27,01%
25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
31,80%
40,41%
40,41%
31,27%
30,95%
30,53%
30,11%
29,69%
39,92%
38,33%
34,49%
30,60%
29,40%
28,20%
27,01%
25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
31,80%
40,41%
40,41%
31,27%
30,95%
30,53%
30,11%
29,69%
39,92%
38,33%
34,49%
30,60%
29,40%
28,20%
27,01%
25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
31,80%
40,41%
40,41%
31,27%
30,95%
30,53%
30,11%
29,69%
39,92%
38,33%
34,49%
30,60%
29,40%
28,20%
27,01%
25,81%
39,13%
36,41%
33,00%
2013 2014 2015 2016 2017 2018
Regulatory NT Losses/LV (Flexible) Regulatory NT Losses/LV (Final)
Real NT Losses/LV (forecast Light, Ref. August) Regulatory NT Losses/LV (AP)
Regulatory NT Losses/LV w/ Penalty
Regulatory Losses
Target (every August)
Regulatory Losses with Penalty
Final Proposal (according to methodology)
Generation
855 MW Installed Capacity
Concessions Expiring Only in 2026
16
HPP Santa Branca
56 MW
HPP Ilha dos Pombos
187 MW
HPP Fontes Nova
132 MW
Underground HPP
Nilo Peanha - 380 MW
HPP Pereira Passos
100 MW
SP
RJ
HPP Santa Branca
Paraiba do Sul River
HPP Ilha dos
Pombos
100%
100%
100% 100%
100%
ISO 9001 Quality Management
14001 Environmental Management
OHSAS 18001 - Occupational health and Safety Management
17
Assured Energy: 549 MWaverage
Energy commercialization focused on the free market
Average selling price in 2014-2021: R$ 163/MWh (base date: January, 2014)
2014 2015 2016 2017 2018 2019 2020 2021
549
39
510
28
28
28 28 28 28 28
549 549 549 549 549 549 549
480 434
461
418
317
242 232
42
88
61
103
205
280 290
Contracted Energy (Free)
Hedge
Available Energy
Generation Expansion
Renewable energy generation projects, mainly through partnerships
Project
Installed Capacity
(MW)
Assured Energy
(MWaverage)
Operational Start Stake
Paracambi 25 20 2012 51%
Renova
425 (in operation)

1,806 (contracted)
235 (in operation)

921 (contracted)
2008 - 2012

2014 2018
21.86%
Belo Monte 11,223 4,571 2015 2.49%
Guanhes 44 25 2015 51%
Lajes 17 16 2016 100%
18
Generation Expansion
Installed Capacity (MW)
Light's proportional Participation
+74.3%
51% Light
21.86% Light
2.49% Light
Renova: +55
Guanhes: +17
B.Monte: +3
Renova: +78
B.Monte: +3
Renova: +5
B.Monte: +30
Renova: +44
B.Monte: +46
Renova: +26
B.Monte: +46
B.Monte: +46
B.Monte: +46
Renova: +78
B.Monte: +46
Renova: +37
Guanhes: +5
Renova: +74
B.Monte: +15
19
1,002
1,077
1,158
1,211
1,300
1,371
1,417
1,540
1,660
1,675
1H14
2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19
RESULTS
21
Net Revenue
Commercial (Captive)
42.6%
NET REVENUE (R$MN)
Generation
7.5%
Distribution
80.5%**
NET REVENUE BY SEGMENT (2Q14)*
Commercialization
12.0%
NET REVENUE FROM DISTRIBUTION (2Q14)
Industrial (Captive)
5.9%
Others (Captive)
12.2%
Network Use (TUSD)
(Free + Concessionaires)
7.8%

Residential (Captive)
31.5%
+3.5%
1,580 1,602
378
333
1,755
3,677
2Q14 1H13
3,344
3,720
214
176
1,816
4,098
2Q13 1H14
+11.5%
Construction Revenue
Revenue w/out construction
revenue
* Eliminations not considered
** Construction revenue not considered
22
Operating Costs and Expenses
Manageable
(Distribution): R$ 309
(18.8%)
Generation and
Commercialization: R$ 249
(15.2%)
Non manageable
(Distribution**): R$ 1,084
(66.1%)
DISTRIBUTION PMSO COSTS (R$MN)
COSTS (R$MN)*
2Q14
R$ MM 2Q14 2Q13 Var. 1H14 1H13 Var.
PMSO (207.1) (212.0) -2.3% (412.3) (412.7) -0.1%
Provisions (14.1) (66.6) -78.8% (79.4) (111.8) -29.0%
PCLD (36.1) (48.4) -25.5% (61.4) (77.4) -20.8%
Contingencies 21.9 (18.2) - (18.0) (34.4) -47.5%
Depreciation (86.2) (83.8) 2.8% (171.6) (164.5) 4.3%
Other
operational/
revenues
expenses
(1.2) (5.7) -79.5% (13.3) (12.9) 2.6%
Total (308.5) (368.0) -16.2% (676.6) (701.9) -3.6%
1H14
1H13 2Q14 2Q13
212 207
-2.3%
413 412
-0.1%
COSTS (R$MN)*
1H14
Generation and
Commercialization : R$ 506
(14.6%)
Manageable
(Distribution): R$ 677
(19.5%)
Non manageable
(Distribution**): R$ 2,293
(66.0%)
* Eliminations not considered
** Construction revenue not considered
Tariff Deficit
23
Tariff
Deficit
Balance CDE Fund
ACR FUNDS -1H14 (R$ MN)
(250)
(1,635)
1,385
Decrees 8203
(Jan/14) and
8221 (Apr/14)
Involuntary exposure to the spot market 1,238
Availability contracts with thermal plants 299
Hydrological risk 39
Auction A-1 Contract 30
Auction A-0 Contract 28
TOTAL 1,635
The exposure to the spot market, combined with its high prices, which reflect low reservoir
levels and higher thermal plants dispatch, caused an expressive tariff deficit for distribution
companies.
The remaining balance of R$ 250 MN refers to the portion of items not covered by the decrees, with emphasis on (i)
availability contracts from January; (ii) energy contracted at the A-1 auction; (iii) part of the energy contracted at the A-0
auction, hydrological risk, revenue from hydrological risk deducted from the January and February transfers and from the
cut in the April transfer.
84.7% of
deficit
covered
24
EBITDA PER SEGMENT
(R$ MN)
239
-13.9%
278
45.8%
54.2%
37.4%
62.6%
2Q13 2Q14 1H13 1H14
63.3%
36.7% 44.7%
+9.3%
55.3%
633
692
1
Percentages do not consider eliminations
Generation and Commercialization
1
Distribution
CONSOLIDATED
EBITDA
2Q14 2Q13 Var. 1H14 1H13 Var.
Distribution 132.3 174.5 -24.2% 387.1 402.6 -3.9%
EBITDA Margin % 9.2% 12.5% -3.3 p.p. 12.2% 13.5% -1.3 p.p.
Generation 88.0 100.1 -12.1% 270.8 219.4 23.4%
EBITDA Margin % 66.0% 75.9% -9.9 p.p. 78.6% 79.1% -0.6 p.p.
Commercialization 23.9 4.4 449.3% 41.5 14.3 190.6%
EBITDA Margin % 11.1% 2.8% 8.3 p.p. 9.2% 4.6% 4.6 p.p.
Other and
Eliminations
(4.9) (1.1) 360.2% (7.1) (3.3) 118.9%
TOTAL 239.3 277.9 -13.9% 692.3 633.1 9.3%
EBITDA Margin % 14.9% 17.6% -2.7 p.p. 18.6% 18.9% -0.3 p.p.
EBITDA
EBITDA
1H13
EBITDA
1H14
Net
Revenue
Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted
EBITDA
1H13
Adjusted
EBITDA
1H14
1.158
Non-
Manageable
Costs
Manageable
Costs
(PMSO)
Provisions Others CDE
Transfers
25
- 6.9%
+9.3%
854
220
633
376
(328)
(10) (6)
32 (6)
692
102
794
Adjusted EBITDA - 1H13/1H14 (R$ MN)
+ 43.1%
- 6.8%
282
145
137
59
44 (36) (8)
196
67
263
Net Income
1H13 1H14 EBITDA Financial
Result
Taxes Others
Adjusted Net Income - 1H13/1H14 (R$ MN)
Regulatory
Assets and
Liabilities
Regulatory
Assets and
Liabilities
Adjusted Net
Income
1H13
Adjusted Net
Income
1H14
26
Dividends
27
Average payout of 86% in the last 5 years
Indebtedness
Average Term: 3.9 years
AMORTIZATION SCHEDULE* (R$ MN)
NET DEBT
With Pension Fund
2.58
2.84
* Amount
without hedge
* Pincipal only
COST OF DEBT
TJLP
13.3%
CDI
74.5%
IPCA
11.0%
Others
3.7%
U$/Euro *
2.7%
28
408
781
1,031
832
1,166
717
729
476
573
2012
2011
2T14
2013
2.24%
8.21%
3.87%
10.49%
4.25%
11.03%
9.68%
3.55%
2007 2008 2009 set/10
Custo Real Custo Nominal
Jun/13
2009
2010
Custo Real
Custo Real
2.90
2.99
Jun/14
Mar/14
2.62
2009
2010
Custo Real
Custo Real
Nominal Cost Real Cost
2009 2010 2011 2012
Custo Nominal Custo Real
2009 2010 2011 2012
Custo Nominal Custo Real
Net Debt / EBITDA
(covenants)
2009 2010 2011 2012
Custo Nominal Custo Real
5,122.7
5,341.8 5,229.6
After
2021
Investments
CAPEX BREAKDOWN
(R$ MN)
1H14
Generation
8.4
Administration
12.2
oTHERS
5.0
Develop. of
Distribution
System
207.5
Losses
Combat
119.7
Commerc./
Energy
Eficiency
5.0
CAPEX (R$ MN)
29
519
2010
701
2011 2012
797
694
103
519
182
775
154
713
132
845
+9.5%
2013
327
1H13 1H14
54
26
273 332
358
929
Investments in Electric Assets (Distribution)
Why invest in Light?
Rio as a host of major events
Communities pacification
Pro-business environment
Investment projects hub
Energy Market growth

Economic
Transformation
in the
Concession Area
Progress in the Technology
Program (Smart Grid)
New network and electronic meters
in the pacified areas
Zero Losses Area Program

Energy
Losses
Reduction

Projects under construction with
partnerships: Renova, Belo Monte and
Guanhes (total of 697 MW)
SHPP Lajes under construction
(17MW).
Growth in the
Generation
Business
Expiration of Regulated
Contracts (Dec/2013)
New contracts in 2014
Energy available for
commercialization

Energy
Commercialization
focused on the
free market
Listed in Novo Mercado of
Bovespa
Board Commitees with strong
participation in the decision making
process
Included in the Sustainability
Index (ISE) for the 7th year
Best Corporate
Governance
Practices

Dividend Policy: minimum 50%
of net income;
Average payout since 2009:
86%

Dividend track
Record
30
Important Notice
31
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.
Contacts
Joo Batista Zolini Carneiro
CFO and IRO

Gustavo Werneck
Superintendent of Finance and Investor Relations
+55 21 2211 2560
[email protected]

Mariana da Silva Rocha
IR Manager
+ 55 21 2211 2814
[email protected]
www.light.com.br/ri
www.facebook.com/lightri
twitter.com/LightRI
32