1

Corporate PresentationFebruary 2011

Corporate PresentationFebruary 2011

2

Light HoldingsLight Holdings

Holding

Light Serviços de Eletricidade

S.A.

Distribution

Light Energia S.A.

Generation

Light EscoPrestação de

Serviços S.A.

Trading/Services

ItaocaraEnergia S.A.

Lightger S.A.(SHPP

Paracambi)

LighthidroS.A.(Non

Operational)

Axxiom S.A.Axxiom S.A.

Technology

EBL

LightcomComerciali-zadora de

Energia S.A.100% 100% 51% 100% 100% 51%

100%51%33%

3

RankingsRankings

IntegratedNet Revenues 2009 – R$ Billion

48,566

42,786 41,269

28,28021,492 21,286

DistributionEnergy Consumption in Concession Area (2009) - GWh1

11.710.6

7.05.6 5.4 4.6

Generation Private-owned CompaniesInstalled Hydro-generation Capacity (MW) – 2009

5,175

2,6512,237

1,737 1,688

855

Souce: Companies reportsNote: 1 – Captive market + free clients

2 – It doesn’t consider the consumption of CSN, Valesul and CSA

4

Shareholders StructureShareholders Structure

Controlling shareholder [52.1%] Free Float [47.9%]

MarketLEPSA

13.03% 13.03% 15.02% 32.88%

Dec 2010

LUCE

RME

REDENTOR

26.06%

Free Float [47.9%]

Market

26.06% 26.06% 15.02% 32.88%

SPVPARATI

>50%<50%

Controlling shareholder

[52.1%]

Final Structure

FIPREDENTOR

11 Board members: 8 from the controlling group, 2 independent and 1 employees nominated

A qualifying quorum of 7 members to approve relevant proposals such as: M&A and dividend policy.

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Corporate GovernanceCorporate Governance

Controller discussion group

Controller discussion group

Controller groupController group MinorityMinority

General AssemblyGeneral Assembly

Fiscal CouncilFiscal Council

Board of DirectorsBoard of Directors

AuditorsCommitteeAuditors

CommitteeGovernance and

Sustainability Committee

Governance and Sustainability

Committee

Human Resources Committee

Human Resources Committee

Finances CommitteeFinances

Committee

Management Committee

Management Committee

ManagementManagement

Shareholders11 Board members: 2 independent and 1 employees nominated

2 years term

Fiscal Council

Manual of Corporate Governance

Interface

6

• 4.0 million clients (attending over 10 million people)• Energy sales (2009) – 21,492 GWh• 70% of the consumption of Rio de Janeiro state (Brazil’s 2nd GDP)

5th largest energy distribution company in Brazil5th largest energy distribution company in Brazil

Distribution BusinessDistribution Business

7

Energy ConsumptionConsumptionDistribution

ELECTRICITY CONSUMPTION ¹

(GWh)

22.2 ºC 21.7 ºC22.7 ºC

22.1 ºC

3Q103Q093Q083Q07

+3.1%

5,1444,989

+1.9% a.a.

4,9804,802

24.5 ºC 23.6 ºC24.7 ºC

24.4 ºC

9M109M099M089M07

+6.0%

16,72815,77515,67215,533

+1.6% a.a.

,

Free Customers 14.9%

Residential 34.6%

Others 15.6%

Commercial 27.0%

Industrial 8.0%

¹ Note: To preserve comparability in the market approved by ANEEL in the tariff adjustment process, the billed energy of the freecustomers Valesul, CSN and CSA were excluded in view of these customers’ planned migration to the core network.

8

Total Market

FREECAPTIVE

RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL

9M09 9M10 9M09 9M10 9M09 9M10 9M09 9M10 9M09 9M10

ELECTRICITY CONSUMPTION (GWh)

(CAPTIVE + FREE MARKET)+6.0%

4,382 4,379

15,775

607 764

16,728

+6.9%

+3.2%

2,421 2,499

2,549

127 131

2,630

+5.9%

4,447 4,593

4,697249 379

4,972+7.2%

1,349 1,286

2,744

1,395 1,654

2,940

5,785 6,185

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Investments scheduled

Revitalization of the Port zone

Expansion of subway system

Urbanization of slums

Depollution of the Rodrigo de Freitas Lake

Construction of the Metropolitan Arch

Expansion of Tom Jobim airport

Construction of 50,000 housing units by 2013

T5 Corridor

Rio-São Paulo bullet train²Angra 3

Via Light (Road)

Investments in optic fibers by 2016

Improvement and acquisition of new trains by Supervia

Renovation of Hotel and Marina daGlória

Expansion of hotel capacity (5 new hotels on the waterfront, 8,000 beds in ships)

Construction of COMPERJ

Expansion and modernization of REDUC

Construction of CSA

Eisa naval industry

Sudeste Port

Gerdau – Port Terminal

Coquepar

CSN – Itaguaí Logistics Platform

Construction of Barra da TijucaComplex

Construction of Deodoro Complex

Renovation and Expansion of Maracanã Stadium

InfrastructureR$ 31 billion

PrivateR$ 41 billion

OlympicsR$ 4 billion

1 Source: Firjan, Rio de Janeiro Town Hall, Light and Construction Industry Union of Rio de Janeiro.² Considering the part inside of the State of Rio de Janeiro

Total estimated investments1 of R$ 76 billion

Till the World Cup in 2014 and the Olympics in 2016

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Collection Rate

COLLECTION RATE BY SEGMENT9 MONTHS

COLLECTION RATE12 MONTHS97.8% 98.7% 95.8%94.0% 101.3% 101.1% 105.4% 105.6%

97.2% 98.0%

Sep/09 Sep/10Total Retail Large Customers

Public Sector

9M09 9M10

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42.5% 42.7% 42.1%

37.3%

5,149 5,313 5,330

2,191 2,197 2,214

4,958 5,352

7,5517,5497,5047,2697,005

2,1202,047

42.3% 42.4%

Sep/09 Dec/09 Mar/10 Jun/10 Sep/10

Losses

LOSSES (12 months)

NON TECHNICAL LOSSES PROFILE

Risk areas 39%

Out of risk areas 61%

Non-technical losses GWh

Techincal losses GWh

% Non-technical losses / Low voltage market

% Non-technical losses / Low voltage market -Regulatory

12

New Technology Program

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

Grid shielding projects

Technology used in regions in which conventional measures are not effective

Areas that present high levels of non-technical losses

Control room

7 5 41 2 75 4 12

Actual grid Shielded grid

9 m

Low voltage

AnalogicMeter

Medium voltage

Display

Low voltageMedium

voltage

Centralized meter

3 m

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New Technology Program

Meters Installed (as of Dec, 2010)

38,000

122,000

84,000

Monitoring, reading, cutting and reconnection of customers telemetry–MCC (Measuring Center Centralized)

Prioritization in areas of high losses and aggressiveness to the network

Technology hindering inappropriate interference in networks

TOTAL INDIVIDUAL CENTRALIZED

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Results of New TechnologiesResults of New Technologies

INDIVIDUAL METERING(ISM)

CENTRALIZED METERING (CSM)

BILLED CONSUMPTION GROWTH (2010/2009)CSM x Around Region

TOTAL LOSSES AT AREAS WITH ISM

Around region CSM

9.5%

22.7%

3.6%

7.9%

12.3%

29.2%

2.4%

31.7%

4.9%

16.0%

3.4%

11.7%

Apr May Jun Jul Aug Sep

22.0%

15.0%

11.0%9.0%

6.1%

Feb/08 Dec/08 Jul/09 Dec/09 Oct/10

Regions of Barra da Tijuca and Jacarepaguá Region of Realengo

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Pacification of risk areas

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Action in Pacified Communities

Regions with high losses and potential return

Expansion of the PPU*'s police allows different actions in the risk areas

Actions of energy efficiency in communities

*PPU : Pacification Police Units

LAMPS REFRIGERATORS

99.7 thousand 5.6 thousand

Communities billed

Light started to bill new communities in December: Babilônia, Casa Branca, Batam and Cantagalo.

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Action in Pacified Communities

CLIENTS LOSSESDELINQUENCY

RATEBEFORE 80 90% 70%AFTER 1,671 2% 2%

BEFORE 408 56% 74%AFTER 540 1% 2%

BEFORE 2,800 52% 68%AFTER 3,700 8% 0%

BEFORE 389 73% 54%AFTER 850 TBD TBD

BEFORE 470 77% 52%AFTER 740 TBD TBD

BEFORE 0 62% 51%AFTER 500 TBD TBD

BEFORE 1,054 66% 79%AFTER 2,003 TBD TBD

COMMUNITIES

CASA BRANCA

BATAM

CANTAGALO

SANTA MARTACHAPÉU

MANGUEIRA

CIDADE DE DEUS

BABILÔNIA

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Tariff Review - Aneel´s Proposal for 3rd cycleRegulatory WACC

Equity 42.84% 40.00%Debt 57.16% 60.00%

Risk Free Rate 5.32% 4.96%Equity Risk Premium 6.09% 5.78%Beta 0.772 0.650Country Risk 4.91% 4.42%FX risk 1.78% eliminatedUS inflation 2.60% 2.48%Nominal Cost of Equity 16.71% 13.14%Real Cost of Equity 13.75% 10.40%

Credit Risk 2.96% 2.12%Nominal Cost of Debt 14.97% 11.50%Real Cost of Debt 12.06% 8.80%Weighted Average CostNominal WACC after tax 12.81% 9.81%Real WACC after tax 9.95% 7.15%Pre‐tax Regulatory Return 15.07% 10.84%

2nd Tariff Revision 

3rd Tariff (Aneel's Proposal)

Capital Structure

Cost of Equity

Cost of Debt

Regulatory returns for distribution andtransmission

9.95%9.28%

11.26%

7.24% 7.15%

Distribution2003 (1st

Cycle)

Distribution2007 (2nd

Cycle)

Distribution2011 (3rd

Cycle)

Transmission2005 (1st

Cycle)

Transmission2009 (2nd

Cycle)

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Tariff Review - Aneel´s Proposal for 3rd cycle

Main periodic tariff review dates

Last Revision  Next Revision

Coelce  22‐Apr‐07  22‐Apr‐11Eletropaulo  04‐jul‐07 4‐Jul‐11EDB ‐ Bandeirante   23‐Oct‐07 23‐Oct‐11CPFL ‐ Piratininga   23‐Oct‐07 23‐Oct‐11

CPFL ‐ Jaguariuna  3‐Feb‐08 3‐Feb‐12CPFL ‐ Santa Cruz  3‐Feb‐08 3‐Feb‐12Copel 24‐jun‐08 24‐Jun‐12Celesc  7‐Aug‐08 7‐Aug‐12

Cemig   8‐Apr‐08 8‐Apr‐13CPFL ‐ Paulista   8‐Apr‐08 8‐Apr‐13CPFL ‐ RGE   19‐Apr‐08 19‐Apr‐13EDB ‐ Escelsa   7‐Aug‐10 7‐Aug‐13Equatorial ‐ Cemar   26‐Aug‐09 28‐Aug‐13Light  07‐nov‐08 7‐Nov‐13

2013

2012

2011Light

EBITDA by segment - 2013

Generationand Trading

30%

Distribution70%

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Generation BusinessGeneration Business

Installed capacity 855 MWInstalled capacity 855 MWInstalled capacity 855 MW

• 855 MW of installed capacity• 5 power plants and 2 pump stations• 537 MW average of assured capacity

• 855 MW of installed capacity• 5 power plants and 2 pump stations• 537 MW average of assured capacity

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Installed Capacity

HPP Santa Branca56 MW

HPP Ilha dos Pombos187 MW

HPP Fontes Nova 132 MW

HPP Underground Nilo Peçanha - 380 MW

HPP Pereira Passos100 MW

SP

RJ

HPP Santa Branca

Paraiba do Sul River

HPP Ilha dos Pombos

Installed Capacity855 MW

100% 100%

100%100%100%

LajesComplex

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Re-pricing of existing energy

GENERATION Assured energy: 537MW average

2008-2012

27

2013

27

2014

27

510

146

234

130

276

234

Contracted Energy

Uncontracted Energy

New Contracts

Hedge

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Strategy of growing in generation

Installed Capacity Expansion

Commitment to invest jointly in new generation projectsPotential new projects already analyzed by CEMIG

Light is constantly looking for new opportunities in renewable energy

Small Hydro Power PlantsHydro Power PlantsBiomassWind energy

Assets with potential for improvement and further expansionAssets belonging to investors that do not have a long-term commitment to Brazil

Greenfields

Acquisition ofExistingAssets

Joint Venturewith CEMIG

1,282

855 13 9

306

99

+50%

Generationcapacity

SHPPParacambi¹

SHPPLajes¹

HPPItaocara¹

NewProjets

Future Generation

capacity

Growth Opportunities

¹ Corresponds to 51% Light’s stake in each project.

24

SHPP Paracambi

PROJECT HISTORICAL

ConstructionBeginning

Construction Status45% done

OperationalStart

Oct/2009 Nov/2011Nov/2010

24

25

ResultsResults

26

Net Revenues

NET REVENUE GROWTH (R$ MN) NET REVENUE BY SEGMENT (9M10)*

+4.3% a.a.

2009

5,432

20082007

5,3874,992 +12.7%

3,9304,429

9M109M09

Generation 5.1%

Distribution 91.9%

Commercialization 3.0%

*Eliminations not considered

DISTRIBUTION NET REVENUE (9M10)

( Free Customers + Concessionaires)

Commercial 25.5%

Industrial 7.6%

Others (Captive) 12.6% Network Usage (TUSD) 6.3%

Residential 44.1%

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27

Operating Costs and Expenses

COSTS (R$MM)*9M10

MANAGEABLE DISTRIBUTION COSTS (R$ MN)

2006

1,561 -30.1%

2009

1,143994

1,090

2007 2008 9M09 9M10

791786

+0.7%

Manageable (distribution): R$ 791.0(21.1%)

Generation andCommercialization : R$ 199.7(5.3%)

Non – Manageable (distribution): R$ 2,760.2(73.6%)

R$ MN 3Q09 3Q10 Var. 9M09 9M10 Var.

PMSO 119.9 146.4 22.1% 358.3 423.7 18.3%

Provisions 67.0 21.8 -67.5% 217.6 151.1 -30.5%

PDD 57.9 66.7 15.2% 184.3 205.5 11.5%

Contingencies 9.1 (44.9) - 33.3 (54.3) -

Depreciation 70.1 73.5 4.9% 210.1 216.2 2.9%

Total 257.0 241.7 -5.9% 785.9 791.0 0.6%

*Eliminations not considered

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28

EBITDA

22.8% 21.9%

27.9%

21.9%21.6%

20071 2008 2009

1,138 1,1881,504

9M109M09

969848

Generation 16.9%(EBITDA Margin:

71.5%)

Commercialization 1.9% (EBITDA Margin: 13.6%)

Distribution 81.2%(EBITDA Margin:

19.2%)

EBITDA (R$ Million) and EBITDA Margin EBITDA BY ACTIVITY*9M10

*Eliminations not considered

EBITDA EBITDA Margin

¹ Pro forma: does not consider profit sharing costs

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29

Net Income

NET INCOME (R$ MN)

1,074

605

9M09 9M102009

974

357 350

2007 2008

223

418479

-2.0%

non-recurring effects

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30

Dividends

16.2%PAYOUT AND DIVIDEND POLICY

2007 2008 2009

518559

595

8.3%12.3% 11.6%

2010

795

100% 100%

76.3%

2007 2008 2009

50%

Payout Dividend PolicyDividends (R$ MN) DividendYield*

* Based on the closing price of the previous day to the announcement

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31

Indebtedness leverage

Net Debt¹ (R$ MM) and Net Debt / EBITDA

Rating(brA - )

InvestmentGrade(brA)

Rating(brA + )

Rating(Aa2.br)

2006

3.4

2,540

20072

1,580

2008

1.1

1,637

1.4

2009

1.3

1,664

1,462

Set/10

1.3

Net Debt Net Debt/ EBITDA

¹ Net debt = total debt (excludes pension fund liabilities) – cash² EBITDA Pro Forma, not considering costs of profit sharing costs

31

32

Indebtedness

Amortization Schedule* Sep/10 (R$ MN)NET DEBT

Duration: 3.2 years

45

495414

481

596

122 267

Nominal CostReal Cost

Sep/102007 20092008

Jun/10 Sep/10

1,6641,805

1.4 1.3

2010 2011 2012 2013 2014 2015 After 2015

US$/Euro 1.8%*

CDI/Selic75.0%

TJLP 23.2%

*Considering HedgeC

6.32%

11.32%

7.39%

12.17%

7.62%

13.97%

5.30%

9.84%

* Only principalDebt Cost Evolution

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33

Capital Expenditures

INVESTMENTS (R$MN) INVESTMENTS (R$MN)9M10

9M109M09

352.8437.0

+23.9%

200920082007

563.8546.7

354.7

706.0

2010E

DistributionDevelopment

SystemR$ 194.1

Losses Combat R$ 75.6

Quality Improvements 

R$ 66.0

New projects of generation 

R$ 60.0

Generation Maintenance

R$ 17.4

Others

R$ 23.7

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34

Contacts

João Batista Zolini CarneiroCFO and IRO

Renato RochaHead of Planning and IR

+ 55 21 2211 2766renato.rocha@light.com.br

Gustavo WerneckIR Manager

+ 55 21 2211 2560gustavo.souza@light.com.br

www.light.com.br/ri

35

AnnexAnnex

36

Tariff Breakdown

DISTRIBUTION TARIFF BREAKDOWN

Sector Charges 9.5%

,

Taxes 31.8%

Transmission 4.8%Distribution 23.1%

Energy Purchase 30.9%

Taxes and sector charges represent 46.1% of the tariff. Only 23.1% covers distribution expenses.

37

Distribution Companies

AMPLA

State-owned Companies

Private-owned Companies

Source:

64 companies:24 private owned (37%)

21 privatized (33%)

19 state owned (30%)

38

Final Tariff Review - Losses

2003 2008PRELIMINARY

1

2008DEFINITIVE1

15.95%

19.15% 19.09%

Regulatory Losses Trend

nov/08 –out/09

5.61% 5.61% 5.61% 5.61% 5.61%

nov/09 –out/10

nov/10 –out/11

nov/11 –out/12

nov/12 –out/13

Technical Losses / Grid Load(%)

nov/08 –out/09

nov/09 –out/10

nov/10 –out/11

nov/11 –out/12

nov/12 –out/13

38.98% 37.19% 35.40% 33.61% 31.82%

Non Technical Losses / Low Voltage Market (%)

Total Losses / Grid Load (%)

Energy Balance (GWh) 9M10 9M09 Var.%= Grid Load 26.048 24.237 7,5%

- Energy transported to utilities 2.345 1.921 22,1%- Energy transported to free customers 3.717 3.033 22,5%

= Own Load 19.986 19.283 3,6%- Captive market consumption 14.564 14.004 4,0%

Low Voltage Market 9.446 8.886 6,3%Medium Voltage Market 5.118 5.118 0,0%

- Losses + Non Billed Energy 5.422 5.279 2,7%

1- Preliminary announced on November 3, 2008 / 2008 definitive was approved in October 13, 2009

39

Important NoticeImportant 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 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.