3Q08 Results Conference Call

3Q08 Highlights

Increase of 3.3% in energy consumption in concession area in this quarter MARKET Reduction of 0,3 p.p in non-technical losses over the grid load in relation to Dec/07

FINANCIAL RESULTS

46.5% EBITDA increase in 3Q08 when compared to 3Q07 9M08 income was R$697.1 million Distribution of R$350.8 million as dividends

Repositioning of +1.96% on IRT and +2.30% of finnancial components TARIFF REVIEW Recognition of 19.15% of regulatory losses over the grid load ANEEL was favorable to the administrative appeal related to the CVA energia recalculation of 2005 and 2006

Energy Sales
Distribution
17,783 +0.2% +2.2% 17,816 4,121

ELECTRIC ENERGY CONSUMPTION (GWh) TOTAL MARKET (Captive + Free)

5,535 1,345 Free Captive 4,190 3Q07 +3.3% +2.2% +3.7% 5,718 1,374 4,344

4,030

13,753

-0.4% 13,695

3Q08

9M07

9M08

ELECTRIC ENERGY CONSUMPTION (GWh)

4,190 4,344

1,613 1,714 485 3Q07 3Q08 Residential 6.3% Industrial -1.8% 477

1,315 1,379 777 774

Commercial 4.9%

Others -0.4%

TOTAL 3.7%

Losses Fight Evolution

LOSSES EVOLUTION (12 meses) 20.54% 20.68% 20.64% 20.56% 20.47% NON TECHNICAL LOSSES PROFILE (9M08)
Out of risk areas 62% Risk areas 38%

14.67% 5.87%
sep/07

14.74% 5.94%
dec/07

14.68% 5.96%
mar/08

14.57% 5.99%
jun/08

14.44% 6.03%
sep/08

Technical Losses

Non-technical losses

Losses Reduction New technology

Centralized Measurement and Medium and Low Voltage Network at the same level

1,091 clients 233 regularizations

Consumption average (kWh per client) in:
189 139
+27% julaug/07 julaug/08

Collection Evolution
COLLECTION INDEX (12 Months Average) 99.4% 98.5%

99.1% PDD/GROSS REVENUE (Billed Sales)

4.7%

94.1%
2.5% 2.6% 2.7%

dec/06

sep/07

dec/07

sep/08

3Q07 Non recurring effects R$ MM PDD Non recurring adjustment PDD 184.7 9M07 184.2

2Q08

3Q08

Without non recurring effects 9M08 186.3% (21.7) 164.6% (19.7) VARIATION 2.1%

Investments
576

(R$ mn)

405 322 355

277

2H08 (E)

318

1H08

258

2005

2006

2007

9M08

Main Investments 9M08

Losses combat Distribution network development Quality improvement (structure optmization and preventive maintenance) New generating projects
119,6 124,0 50,8

6,8

Financial Highlights
NET REVENUE (R$ mn)
+4.2%

MANAGEABLE COSTS (R$ mn)

-1.9% -1,9%

3,752

3,911

940

922

-6.3% -6,3% +11.1%

313

294

1,169

1,298

3Q07 3Q07 Pro Forma 3Q08 9M07 Pro Forma 9M08

3Q08

9M07

9M08

Non recurring effects Costs 1) PMSO 2) Depreciation Provisions w/out adjustment Non recurring adjustment 3) Provisions Total (1+2+3) 3Q07 157.6 94.6 61.0 61.0 313.2 3Q08 138.7 80.0 40.1 34.5 74.7 293.5

Without non recurring effects % -12.0% -15.4% -34.2% 22.5% -6.3% 9M07 450.5 251.9 237.4 237.4 939.9 9M08 415.2 244.6 240.4 21.7 262.1 921.9 % -7.9% -2.9% 1.3% 10.4% -1.9%

Financial Highlights
EBTIDA (R$ mn)
+14.5%

995

869
28.0% 21.3% 23.2% 25.4%

EBTIDA PER SEGMENT* 9M08

Distribution 83.5% Generation 15.3%

+46.5%

364

249
Comercializ. 1.2%
*It doesnt consider eliminations

3Q07 Pro forma EBTIDA

3Q08

9M07 Pro forma

9M08

2008 ACCUMULATED 9 MONTHS* - R$ mn

EBTIDA Distribution Generation Comercialization Consolidated
*It doesnt consider eliminations

EBTIDA Margin

EBTIDA Margin 22.5% 67.7% 17.6% 25.4%

833.4 153.1 11.7 995.2

Financial Highlights
NET INCOME (R$ mn)
+20.6%

DIVIDENDS AND DIVIDEND YIELD*

697

8.3%

8.2%

578 518 285

+315.4% 4.1%

351

208

328
+64.8%

203 412

50 250

3Q07 Pro forma

3Q08

9M07 Pro forma

9M08

nov/07

mar/07

nov/08

Non recurring effects Without non recurring effects

Dividends

Dividend Yield

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

Indebtedness

3,147 2,540 1,462 3.4 1.3

set/08

1,321

4.1

1.1
2005 2006 Net Debt (1) 2007 Net Debt/ EBITDA

(1) Net Debt = Total Debt (excludes pension fund liabilities) - Cash

Indebtedness
Amortization* Sep/08 (R$ mn)
470 292
Long Term 95% Short Term 5%

Maturity: 5.3 years

360 249 159

427

18 18

118 118

2008
* Principal only

2009

2010

2011

2012

2013

2014

After 2014

Debt Costs Evolution

17.03% 12.85% 10.73% 9.42% 7.38% 2005 2006 Nominal Cost 2007 Real Cost 7.28% 9M08 12.17% 13.99%

CDI/Selic 74.7% US$/Euro 4.6% TJLP 20.6%

Tariff Review 2008 Tariff Increase Composition

+4.70% +4.27% Financial Additionals + 2.2% Structural Index + 1.96%
Review 2008

The perception to the consumer is an average increase of 4,70% on the tariffs, and to each voltage level will be as follows:

-0.41%

Low voltage

+ 3.29% + 5.43% + 7.40% + 4.44%

+
Financial Additionals 2007

=
Average perception to the consumers

A4 A3a A2

Tariff Review 2008

vs Tariff Review 2003
2003
Gross Base (R$ mn) Net Base (R$ mn) Regulatory EBITDA (R$ mn) Reference Company Market Growth X Factor (Xe) Regulatory Loss (% over grid load) Delinquency (%) 6,511 3,808 928 471 3.00% p.a. 1.2217%

2008
8,077 4,673 1,048 575 1.51% p.a. 0.0%

15.97% 0.50% over Net Revenue 2003

19.15% 0.90% over Gross Revenue 2008

Contact Information
Ronnie Vaz Moreira
Executive Vice President and IRO

Ricardo Levy
Financial and IR Superintendent + 55 21 2211 2814 ricardo.levy@light.com.br

Cristina Guedes
IR Manager + 55 21 2211 2560 cristina.guedes@light.com.br

www.light.com.br

Forward-Looking Statement
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international securities. 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.

Load Factor (GWh) vs Temperature (C)

Actual Temperature

Average Historical Temperature

Trading Business Integration with clients

The clients portfolio rose from 9 in 2006 to over more than 50 in 2008.
Revenue
Trader (R$ mn)

54.4 Sale of 1/3 of the energy from SPH Paracambi. Long term contracts for the sale of 220 MWa.

14.0

Contracts with Votorantim and other relevant energy consumers.

9M07 Others (R$ mn)

9M08

12.2

10.1 2.9

New contract for modernization of the Cold Water Central of Academia Brasileira de Letras (ABL) Air conditioning system of Santos Dumont Building. Energy efficiency projects in 33 buildings of Oi telecommunications company.

9M07

9M08

Tariff Review 2008

Remuneration Base Definition
100% Depreciated Assets R$ 1,230 Accumulated Depreciation R$ 4,833

Special Obligations R$ 400

Permanent Assets in Service R$ 9,708 Gross Regulatory Asset Base R$ 8,077

Warehouse in Operation + Properties and servitude Special Obligations R$ 202 Net Permanent Assets in Service R$ 4,875 Net Regulatory Asset Base R$ 4,673

Tariff Review 2008

Required Revenue Definition
Energy Purchase R$ 2,456 Part A R$ 3,532 Sector Charges R$ 644 Energy Transport R$ 432 Required Revenue R$ 5,222 PMSO R$ 576 Delinquency R$ 67 Capital Remuneration R$ 705 Reintegration Portion R$ 343

Part B R$ 1,690

Regulatory EBITDA R$ 1,048

Review Details
PARCELA A (R$) ENCARGOS SETORIAIS CCC CDE TFSEE RGR Proinfa ONS Compensao financeira P&D e Eficincia Energtica Encargo de Servios do Sistema - ESS TRANSPORTE DE ENERGIA REDE BSICA Conexo Uso do sistema de distribuio Transporte de Itaipu MUST ITAIPU COMPRA DE ENERGIA AMBIENTE REGULADO - CCEAR 2005-08 (1 Existente) 2006-08 (1 Existente) 2007-08 (1 Existente) 2008-08 (2 Existente) 2006-03 (3 Existente) 2007-08 (5 Existente) LIG121SE (6 Existente) - Ajuste A-3 2008-30 H (1 Nova) A-3 2008-15 T (1 Nova) A-4 2009-30 H (1 Nova) A-4 2009-15 T (1 Nova) A-3 2009-30 H (2 Nova) A-3 2009-15 T (2 Nova) CONTRATOS BILATERAIS UTE Norte Fluminense ITAIPU DFICIT DE ENERGIA (Despesa) TOTAL PARCELA A 643.771.748,51 197.711.851,36 204.613.744,04 12.046.702,07 55.357.574,33 60.451.975,22 183.723,72 48.169.703,87 65.236.473,90 432.503.111,11 336.909.596,00 20.759.993,55 40.224.387,19 34.609.134,38 2.455.572.332,20 345.564.705,46 426.909.662,55 90.955.187,60 57.545.432,68 34.515,74 15.954,35 6.331.619,50 2.713.381,15 26.400.701,37 2.325.499,78 34.197.080,07 20.471.283,29 13.268.414,21 808.672.830,00 579.867.234,05 40.298.830,39 3.531.847.191,82 PARCELA B (R$) CUSTOS OPERACIONAIS Empresa de Referncia Receitas Irrecuperveis (0,90%) Base de Clculo - Receitas Irrecuperveis REMUNERAO DOS INVESTIMENTOS Remunerao Bruta de Capital Quota de Reintegrao Regulatria TOTAL PARCELA B 642.604.666,59 575.868.132,46 66.736.534,13 7.415.170.459,17 1.047.775.907,69 704.484.825,18 343.291.082,51 1.690.380.574,29

REPOSICIONAMENTO TARIFRIO (R$) 1. Receita Requerida (Parcela A + Parcela B) 2. Outras Receitas 3. Receita Requerida Lquida ( 1-2 ) 4. Receita Verificada INDCE DE REPOSICIONAMENTO TARIFRIO NDICE DE REPOSICIONAMENTO (C/ FINANCEIROS) EFEITO MDIO PARA O CONSUMIDOR 5.222.227.766,11 19.221.097,54 5.203.006.668,57 5.102.841.273,52 1,96% 4,27% 4,70%