Conference Call

2th Quarter 2014

Highlights

Energy consumption grew by 3.0% between 2Q14 and 2Q13, driven by an 8.0% consumption increase in the residential segment;

Non-technical losses/BT market in the last 12 months stood at 41.9%, 0.5 p.p. down quarter-over-quarter with a drop of 2.3 p.p. year-over-year;

Collections fee in the quarter reached 103.5%, 0.7 p.p. down year-over-year;

Allowance for doubtful accounts (PCLD) of 1.7% of revenue from energy billing in 2Q14, 0.8 p.p. down on PCLD of 2.5% recorded in 2Q13;

DEC e FEC, in the last 12 months, increase 26.21% and 16.91%, respectively, in comparation with the same period of the previous year;

OPERATING

Net revenue, excluding construction revenue, grew by 1.4% year-over-year, totaling R$ 1,601.5 million;

Consolidated EBITDA in 2Q14 of R$239.3 million, 13.9% down on 2Q13;

Net income for 2Q14 totaled R$15.3 million, compared to a net income of R$58.2 million in 2Q13;

Consolidated net debt of R$5,229.6 million, 2.1% down on the same quarter last year;

FINANCIAL

CDE FUNDS

CDE (Energy Development Account) transfer of funds to distribution companies to settle energy purchase commitments with CCEE (Electricity Chamber of Trade);

Amount of R$224.3 million in April and May was recorded in profit or loss as cost reduction with Portion A;

Total transfer of R$1,385 million in the first half, reducing its period tariff deficit to R$250 million, which will be passed on to consumers in the next tariff adjustment through the CVA.

Energy Consumption Distribution – Quarter

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 captive

5.3%

Free20.3%

Others captives

14.0%

Commercialcaptive27.6%

Residential captive32.8%

2Q122Q11 2Q13 2Q14

+3.0%

6,3045,754

23.2ºC

23.1ºC

5,669

6,495

23.5ºC22.7º

C

+4.6%

Energy Consumption Distribution – Accumulated

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 captive

5.1%

Free18.6%

Others captives

13.6%

Commercialcaptive27.6%

Residential captive35.2%

+5.5%

1H121H11

+5.1%

1H13 1H14

13,14511,93

4

25.7ºC

11,960

13,869

25.2ºC25.1ºC

25.1ºC

Total Market

RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL

2Q13 2Q14

ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET – QUARTER

2Q13 2Q14 2Q13 2Q14 2Q13 2Q14 2Q13 2Q14

FREECAPTIVE

4,954 5,176

6,304

1,349 1,319

+2.3%

893 910

942

49 54

964

+2.8%

1,962

215 224

2,017

1,428

1,085

1,041

1,385

+8.0%

1,9722,128

-3.0%

1,748 1,793

+3.0%

342 344

6,495

Total Market

RESIDENTIAL INDUSTRIALCOMMERCIAL OTHERS TOTAL

1H13 1H14

ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET - ACCUMULATED

1H13 1H14 1H13 1H14 1H13 1H14 1H13 1H14

FREECAPTIVE

5,176

893 910

1,748

342 344

+5.5%

10,526 11,292

13,145

2,618 2,576

13,869

+4.2%

1,806 1,880

1,909

103 109

1,990

5.7%

4,055

430457

4,284

701 705

2,787

2,086

2,010

2,715

+11.1%

4,395

4,880

-2.6%

3,625 3,827

Collection

PCLD/Gross Revenue (Billed Sales) - Quarter

COLLECTION RATE BY SEGMENTQuarter

2Q13

2Q14

103.5%

104.5%

105.1% 101.8%

102.9%

108.1%

Total Retail Large Clients

Public Sector

104.2% 97.3%

2Q12 2Q1 42Q13

3.4%2.5%

1.7%

-0.8 p.p.

2009 2010 2011 2012 2013

Loss Prevention

LOSS (12 MONTHS)

% Non-technical losses/ LV Market

Non-technical losses GWh

Technical losses GWh

Jun/13 Sep/13 Mar/14 Jun/14Dec/13

INSTALLED METERS (Thousand Units)

Communities

Without Communities

2010 2011 20132012

115

Jun/14

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

351

30

79102

227

432

272330

7

122

116

509

197

393

Losses Combat ActionsAPZ Results

By June. the program coverd 505 thousand customers in 29 APZs. which ones 22 had the results calculated:

* Reflects the results accumulated until mar/14 since the begining of the implementation of each APZ. Subtitle: N = N / Y = Yes.-30.0 p.p

Net Revenue

Industrial (Captive) 5.9%

NET REVENUE (R$MN) Generation 7.5%

Distribution 80.5%**

NET REVENUE BY SEGMENT (2Q14)*

Commercialization 12.0%

* Eliminations not considered

** Construction revenue not considered

NET REVENUE FROM DISTRIBUTION (2Q14)

Commercial (Captive)

42.6%

Others (Captive) 12.2%

Network Use (TUSD)(Free +

Concessionaires)

7.8%

Residential (Captive)

31.5%

Construction RevenueRevenue w/out construction revenue

+3.5%

1.580 1.602

378

333

1,755

3,677

2Q14

+1.4%

1H13

3.3443.720

+11.2%

214176

1,816

4,098

2Q13 1H14

1,580 1,602

3,3443,720

+11.5%

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%)

* Eliminations not considered

** Construction revenue not considered

DISTRIBUTION PMSO COSTS (R$MN)COSTS (R$MN)*2Q14

COSTS (R$MN)*1H14

Non manageable (distribution**): R$ 2,293 (66.0%)

Generation and Commercialization: R$

506(14.6%) Manageable

(distribution): R$ 677

(19.5%)

R$ MN 2Q13 2Q14 Var. 1H13 1H14 Var.

PMSO (212.0) (207.1) -2.3% (412.7) (412.3) -0.1%

Provisions (66.6) (14.1) -78.8% (111.8) (79.4) -29.0%

PCLD (48.4) (36.1) -25.5% (77.4) (61.4) -20.8%

Contingencies (18.2) 21.9 - (34.4) (18.0) -47.5%

Depreciation (83.8) (86.2) 2.8% (164.5) (171.6) 4.3%

Other operational/revenues expenses (5.7) (1.2) -79.5% (12.9) (13.3) 2.6%

Total (368.0) (308.5) -16.2% (701.9) (676.6) -3.6%

368309

-16.2% 702 677

1H141H13

-3.6%

2Q142Q13

Tarif Deficit

12

Tarif Deficit BalanceCDE FundTotal

Aporte CDE -1H14 (R$ MN)

Decree8203

(jan/14)

SPOT market Involuntary Exposure 1,238

Availability contracts with thermal plants 299

Hydrological Risk 39

A-1 Auction Contract 30

A-0 Auction Contract 28

TOTAL 1,635

(250)

(1,635)

1,385

The remaining balance of R$ 250 millions refers to the portion of items not covered by the decrees, with an emphasis on: availability contracts in January , energy contracted through the A-1 auction, a portion of the

energy contracted in 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

The exposure to the spot Market and its high prices, which reflect the low levels of hydro plant reservoirs and the dispatch of thermal plants, resulted in an expressive deficit for

distributors

EBITDAEBITDA BY SEGMENT (R$ MN)

Generation and CommercializationDistribution

56.0%244

-12.5%

279

45.8%

54.2%

37.4%

62.6%

2Q13 2Q14 1H13 1H14

63.3%

36.7% 44.7%

+9.9%

636

55.3%

699 Consolidated EBITDA (R$ MN)

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.

Others and eliminations (4.9) (1.1) 360.2% (7.1) (3.3) 118.9%

Total  239.3 277.9 -13.9% 633.1 692.3 9.3%

EBITDA Margins (%) 14.9% 17.6% -2.7 p.p. 18.9% 18.6% -0.3 p.p.

EBITDA

EBITDA2Q13

EBITDA2Q14

Net Revenu

e

Non-Manageabl

e Costs

Manageable Costs (PMSO)

Provisions

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted EBITDA

2Q13

Adjusted EBITDA

2Q14

Adjusted EBITDA – 2Q13 / 2Q14(R$ MN)

Other operacion

al revenues

Equity Pikup

- 9.4%

- 13.9%

397278

(110)(2)

(4)

239

360

11922

3 52

120

EBITDA

EBITDA1H13

EBITDA1H14

Net Revenu

e

Non-Manageabl

e Costs

Manageable Costs (PMSO)

Provisions

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted EBITDA

1H13

Adjusted EBITDA

1H14

Adjusted EBITDA – 1H13 / 1H14(R$ MN)

Other operacion

al revenues

Equity Pikup

- 6.9%

+9.3%

854

220

633

376 (328)(10) (6) 32 (6)

692

102

794

Net Income

2Q13 2Q14EBITDA

Financial Result

Taxes Depreciation

ADJUSTED NET INCOME 2Q13 / 2Q14 (R$ MN)

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted Net Income

2Q13

Adjusted Net Income

2Q14

58

95

- 73.8%

-30.8%

137(39)

(16)(3)

15

79

15

79

Net Income

1H13 1H14EBITDA

Financial Result

Taxes Depreciation

ADJUSTED NET INCOME 1H13 / 1H14 (R$ MN)

Regulatory Assets and Liabilities

Regulatory Assets and Liabilities

Adjusted Net Income

1H13

Adjusted Net Income

1H14

(16) (3)

+ 43.1%

- 6.8%

282

145

137

59

44 (36) (8)

196

67

263

Indebtedness

Average Term: 3.9 years

AMORTIZATION SCHEDULE* (R$ MN)

Nominal Cost Real Cost

NET DEBT

*ConsideringHedge* Principal only

COST OF DEBT

20122011 2Q142007 2008 2009 set/10

Custo Real Custo Nominal

2013

Net Debt / EBITDA

2009 2010 2011 2012

Custo Nominal Custo Real

2009 2010 2011 2012

Custo Nominal Custo Real

2009 2010 2011 2012

Custo Nominal Custo Real

2.24%

8.21%

3.87%

10.49%

4.25%

11.03% 9.68%

3.55%

TJLP13.3%

CDI 74.5%

IPCA 11.0%

Others 3.7%

U$/Euro -2.7%

408

781

1,031832

1,166

717 729476

573

4,056.15,341.8 5,229.6

Jun/13

20092010

Custo Real

Custo Real

2.902.99

Jun/14Mar/14

2.62

20092010

Custo Real

Custo Real

Investments

CAPEX (R$ MN)CAPEX BREAKDOWN

(R$ MN)1H14

Generation8.4

Administration

12.2 Others

5.0

Develop. of Distribution System

207.5

Losses Combat119.7

Investments in Electric Assets (Distribution)

Commerc./Energy

Eficiency5.0

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

Important 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.

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

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