Apresenta??o Corporativa - Morgan Stanley*

8/9/2019 Apresenta??o Corporativa - Morgan Stanley*

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Corporate PresentationFebruary 2015



Light HoldingsDiversified structure which is comprised of the distribution, generation

and commercialization segments.

2



4

56

7

Light in numbers

Amazônia Energia

Renova

Guanhães Energia

Generation

Complexo de Lajes

Distribution RJ State ConcessionArea %

Population¹ 16 mn 11 mn 68%

Area¹ 44,000 Km² 11,000 Km² 25%

GDP¹ R$ 407 bn R$ 207 bn 51%

# Consumers 7 mn 4 mn 57%

# Municipalities 92 31 34%

5

HPP Ilha dos Pombos

SHP Paracambi

HPP Santa Branca

1

2

3

1 IBGE (2010)

4

6

7

3



Rankings Am on g the larges t p layers in Brazi l

INTEGRATED¹Net Revenues 2013* – R$ Billion

POWER GENERATION PRIVATE-OWNED COMPANIES¹Installed Hydro-generation Capacity (MW) – 2013

37,767

25,777 22,92621,783 20,391 15,634

15.6

10.69.2

7.4 7.1

5,560

2,652 2,241 2,219 1,799896

ELECTRICITY DISTRIBUTION²Energy Consumption in Concession Area** (GWh) - 2013

1 – Source: Companies reports2 – Source: Relatório do Sistema de Apoioa ANEEL* Construction Revenue Included** Captive Market*** Considers the 9 MW of Renova’s SHPsand 19 MW of Brasil PCH

*** 4

14.6



Shareholder StructureEff ic ien t co mb ina t ion o f so l id indu s t ry and f inanc ia l p layer s

11 Board members: 8 from the controllinggroup, 2 independents e 1 employeesnominated

A qualifying quorum of 7 members toapprove relevant proposals such as: M&A

and dividend policy

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Corporate GovernanceDecision process assures transparency and value creation

General Assembly

Fiscal Council

Board of Directors

Auditors

Committee

Governance andSustainability

Committee

HumanResourcesCommittee

Finances

Committee

Management

Committee

Chief ExecutiveOfficer

João B. Zolini Carneiro Ricardo Cesar C. Rocha Luis Fernando Guimarães Andreia Ribeiro Junqueira

Fernando Antônio F.Reis Ailton Fernando Dias Cláudio Bernardo Moraes

Paulo Roberto R. Pinto

ChiefCommunications

Officer

Luiz Antonio R. Elias

LGSXY ADR-OTC

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Chief Financial and

Investor RelationsOfficer

Chief Legal Officer

Chief HR OfficerChief Distribution

Officer Chief Energy Officer

Chief BusinessOfficer

CorporateManagement Officer



Energy Consumption Distribution – 9M14

7

1Note: 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.

TOTAL MARKET (GWh) ¹

Industrial

captive5.7%

Free

19.8%

Otherscaptives

14.6%

Commercialcaptive28.4%

Residentialcaptive31.5%

+3.2%

+3.8% p.a.

19,18617,4197,259

19,800

23.9ºC 24.4ºC

9M12M11

24.3ºC24.0ºC

9M13 9M14



Market Breakdown

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ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET – ACCUMULATED

FREECAPTIVE

RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL

+3.2%

9M13 9M14

15,209 16,048

19,186

3,978 3,752

19,800

+2.5%

2,686 2,747

2,837

151 161

2,908

+4.5%

5,909

637 663

6,175

1,039 1,042

4,229

3,190 2,928

3,970

+8.6%

6,2126,747

9M13 9M14 9M13 9M14 9M13 9M14 9M13 9M14

-6.1%

5,271 5,512



Losses and Collection

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LOSSES (12 MONTHS)

% Non-technicallosses/ LV Market

Non-technical losses GWh Technical losses GWh

PBD/GROSS REVENUE(BILLED SALES) - QUARTER

COLLECTION RATE12 MONTHS

97.9% 102.0%

Sep-13 Sep-14

Sep/14ep/13 Mar/14 Jun/14ec/13

43.7%

5,738

2,614

8,552

41.3%

5,972

2,843

8,352

41.9%

5,906

2,851

8,815

5,905

2,647

8,757

- 2.4 p.p.

42.2% 42.4%

5,955

2,793

8,748

3Q12 3Q1 4Q13

1.9% 2.0%

1.6%

-0.4 p.p.



Loss Reduction StrategyEfficient combination between technology and effective management

Outisde of Communities

Communities

CUSTOMERS ENERGY AND STATUS

Retail and residential clients(Low Voltage)

4,100,000

Low VoltageLargest Clients

22,000

LargeClients

(hight andmed 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

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2010 2011 2013012

115

Sep/14

351

3079

102227

432

272

330

7

122

197

131

570

439



MechanicalMeter Display

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Technology: Centralized MeasuringUse of new technologies in areas with a high level of losses



Focused in areas with 10,000 to 20,000 clients with high level of losses anddelinquency;

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 511 thousand

clients (12% of total);200 thousands additional clients per year .

Zero Losses AreaProject: “Light Legal”

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ELECTRONICMETERS

WORKFORCEMANAGEMENT

PARTNERSHIP WITH THE STATEGOVERNMENT



APZ COLLECTIONAPZ LOSSES

Evolution of APZs ResultsSign i f ican t lo s s r educ t ion and inc reas ing co l lec t ion r a te

Before

50.0 %

19.2%89.2%

95.5%

Before

100.2%98.4%00.3%

93.9%

20.3%22.3% 22.0%

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Ma1

J

1

S

1

J

1

S

1

Ma1

S

1

J

1

S

1

-29.7%

+9.2%

D

1

91.2%

D

1

22.2%

J

1

16.4%



Generation



855 MW Installed CapacityConcessions Expiring Only in 2026

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HPP Santa Branca56 MW

HPP Ilha dos Pombos187 MW

HPP Fontes Nova132 MW

Underground HPPNilo Peçanha - 380 MW

HPP Pereira Passos100 MW

SPRJ

HPP Santa Branca

Paraiba do Sul River

HPP Ilha dos

Pombos

100%100%

100%100%100%

ISO 9001 – Quality Management

14001 – Environmental ManagementOHSAS 18001 - Occupational health and Safety Management



Contracted Energy (Free) Hedgevailable Energy

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2015 2016 2017 2018 2019 2020 2021

28 28 28 28 28 28549 549 549 549 549 549 549

486 456 480 438

337247 232

35 66 41 83

184274 289

Average selling price in 2015-2021: R$ 169/MWh (base date: January, 2015)

Assured Energy: 549 MWaverageEnergy commercialization focused on the free market

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82 128 173

219265 280

13

2217

855

13255

22

1H17 1H19

1,552

855

13

365

22

104

1H14

945

855

1377

2H13

921

855

13 53

17

2H18

1,520

855

13

365

22

1H18

1,421

855

68.5%

13

312

22

2H17

13200

22 9

1H15

1,011

855

13143

2H14

971

855

1H16

1,147

1,319

13204

22 36

2H15

1,099

855

1,273

855

13255

22

2H16

1,208

855

13236

855

Light Energia

SHPP Paracambi¹

Renova²

Guanhães¹

Belo Monte³

SHPP Lajes ¹ 51% Light

² 15.87% Light3 2.49% Light

Power Generation ExpansionInstalled Capacity (MW)

Light's proportional Participation

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RESULTS



Net Revenue

Industrial (Captive)6.3%

NET REVENUE (R$MN) Generation 7.4%

Distribution 79.4%**

NET REVENUE BY SEGMENT (3Q14)*

Commercialization 13.2%

* Eliminations not considered

** Construction revenue not considered

NET REVENUE FROM DISTRIBUTION (3Q14)

Commercial (Captive)40.9%

Others (Captive) 12.6%

Network Use (TUSD)(Free + Concessionaires)

8.3%

Residential (Captive)31.9%

Construction Revenue

Revenue w/out constructionrevenue

3Q14 9M13Q13 9M14

+9.4%

1,557 1,581

634455

1,679

5,356

4,9015,301

25722

1,838

5,936+10.8% 1,360

128

227

21

+1.5%

+8.2%



Operating Costs and Expenses

Manageable(distribution)(20.4%)

Generation andCommercialization

(19.6%)Non manageable

(distribution **)(60.0%)

* Eliminations not considered** Construction revenue not considered

DISTRIBUTION PMSO COSTS (R$MN)COSTS (R$MN)*3Q14

COSTS (R$MN)*9M14

Non manageable(distribution **)

(64.3%)

Generation andCommercialization

(16.2%)

Manageable(distribution)

(19.5%)

R$ MN 3Q13 3Q14 Var. 9M13 9M14 Var.

PMSO (311.5) (326.6) 4.8% (987.0) (979.4) -0.8%

Provisions (19.6) (37.9) 93.3% (97.2) (99.3) 2.2%

PCLD (3.9) (20.3) 419.8% (38.3) (38.3) 0.1%

Contingencies (15.7) (17.6) 12.2% (58.9) (61.0) 3.5%

Depreciation (37.1) (29.8) -19.6% (114.6) (91.2) -20.4%

Other operational/revenues expenses (86.0) (91.4) 6.3% (250.5) (263.0) 5.0%

Total 58.2 105.6 81.4% 246.1 296.6 20.5%

327

321

988

3,305

979827

312 327

+4.8%

3T14T13 9M14M13

987 979

-0.8%

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EBITDA by segment(R$ MN)

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Generation and Commercialization 1

Electricity Distribution

56.0%

Consolidated EBITDA (R$ MN) 3Q14 3Q13 Var. 9M14 9M13 Var.

Distribution 137.1 608.9 -77.5% 524.3 1,011.5 -48.2%

EBITDA Margin (%) 10.1% 43.8% -33.7 p.p. 11.5% 23.1% -11.6 p.p.

Generation 24.5 104.9 -76.7% 295.3 324.4 -9.0%

EBITDA Margin (%) 19.2% 79.0% -59.8 p.p. 62.5% 79.1% -16.6 p.p.

Commercialization 23.6 9.3 155.0% 88.8 23.5 277.0%

EBITDA Margin (%) 10.4% 6.0% 4.5 p.p. 13.1% 5.1% 8.0 p.p.

Others and eliminations (1.7) (1.1) 58.4% (32.5) (4.3) 649.1%

Total 183.6 722.0 -74.6% 875.8 1,355.1 -35.4%

EBITDA Margins (%) 11.6% 46.4% -34.8 p.p. 16.5% 27.6% -11.1 p.p.

185

-74.4%723

26.0%74.0%

15.8%

84.2%

3Q13 3Q14 9M13 9M14

74.4%

57.7%

25.6%

42.3%

-33.2%

908

1,359

1Percentages do not consider eliminations



EBITDA

EBITDA9M13

EBITDA9M14

NetRevenue

Non-Manageable

Costs

ManageableCosts

(PMSO)

ProvisionsegulatoryAssets andLiabilities

RegulatoryAssets andLiabilities

AdjustedEBITDA

9M13

AdjustedEBITDA

9M14

Adjusted EBITDA – 9M13 / 9M14 (R$ MN)

Otheroperacional

revenues

EquityPikup

- 16.2%

- 35.4%

1,246

(109)

1,355

400

(896)

0,2 (2) 23 (5)

876

169

1,044

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Net Income

9M13 9M14BITDA FinancialResult

Taxes Depreciation

Adjusted Net Income 9M13 / 9M14 (R$ MN)



Adjusted NetIncome9M13

Adjusted NetIncome9M14

(3)

- 68.9%

- 34.3%

387

(72)

458 (479)

8

169

(14)

143

111

254

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Indebtedness

Average Term: 3.7 yearsAMORTIZATION SCHEDULE* (R$ MN)

27*Considering Hedge

* Principal only

Nominal Cost Real Cost

COST OF DEBT

2012011 3T14

2.24%

8.21%

4.47%

11.27%

4.25%

11.03%

2013

9.68%

3.55%

261

7911,055

866

1,210

721 733479

581

TJLP12.0%

CDI73.3%

IPCA10.8%

Others3.5%

U /Euro *0.3%

4,151.6

5,229.65,543.6

NET DEBT

Net Debt / EBITDA

Sep/13 Sep/14un/14

2.993.39

2.68



Disclaimer

This presentation may include forward-looking statements according to Brazilian regulations and international movablevalues. These statements are based on certain assumptions and analyses made by the Company in accordance with itsexperience, the economic environment, market conditions and future events expected, many of which are out of theCompany’s control. Important factors that can lead to significant differences between the actual results and statements onfuture events or business-oriented results include the Company’s strategy, the Brazilian and international economicconditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of

the financial market, uncertainty regarding the results of its future operations, plans, goals, expectations and intentions,among others. Because of these factors, the Company’s actual results may significantly differ from those indicated or implicitin the statements on events or future results.

The information and opinions herein must not be understood as recommendation to potential investors, and no investmentdecision should be based on the veracity, the updated or completeness of this information or opinions. None of theCompany’s professionals 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 currentexpectations and projections on future events and trends that can affect the Company’s businesses. These declarationsinclude 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 estimatesand assumptions on which these declarations are based on.

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Contacts

João Batista Zolini CarneiroCFO and IRO

Gustavo WerneckSuperintendent of Finance and Investor Relations

+55 21 2211 [email protected]

Mariana da Silva Rocha IR Manager

+ 55 21 2211 [email protected]

http://ri.light.com.br/ www.facebook.com/lightri twitter.com/LightRI

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