1

Light S.A.
Corporate Presentation
Ninth Annual UBS Pactual CEO Conference
February 2008
2
Lights Corporate Structure
4
th
largest integrated Company in the Brazilian electric industry
5
th
largest private
Company in
hydro-generation
3
rd
largest
distribution
Company
(*) Includes Light
Overseas and Light
Energy
Light S.E.S.A (*)
(Distribution)
Light Energia
(Generation)
Light Esco Ltda
(Trading)
Lightger
(New Projects)
Light S.A.
(Holding)
3
The Capital Stock comprises 203,462,739 common shares as of October 31
st
, with no par value.
Shareholders Structure
AGC
Andrade Gutierrez
Concesses
LUCE
LUCE do Brasil
Fundo de Investimento
emParticipaes
EQUATORIAL
Equatorial Energia
RME
Rio Minas Energia
Participaes S.A.
LIGHT S.A.
25% 25% 25% 25%
52.2%
BNDESPAR
MARKET
33.7%
14.1%
Free Float: 47.8%
CEMIG
Companhia Energtica
de Minas Gerais
4
Lights History
Aug,10
2006
Aug,10
2006
1905 1979 May 96
Apr 98 Oct 01 Jan 02 Jul 05
Feb 2008
Feb 2008
Lights Privatization
Public Company
Eletropaulos
Privatization
Split of
EDF - AES
Acquisition by EDF
Light joined Bovespas
Novo Mercado,
Brazils highest level of
corporate governance
standards.
Acquisition by Eletrobras
Creation of Light,
a private Company
For the first time in its history, Light is controlled by a Brazilian Private Group.
RME
- Light joined ISE (Bovespas
Sustainability Index)
-First dividends payment
in a 9-year period
5
- 3.8 million clients
- Energy consumption in the concession area (2007) -
23,653 GWh
- 72% of the consumption of Rio de Janeiro state
(2
nd
GDP in Brazil)
- Distribution Gross Revenue (2007) - R$ 7.8 billion
- Distribution Net Revenue (2007) - R$ 4.7 billion
Distribution Business
Light SESA
3
rd
largest energy distribution Company in Brazil
6
Lajes Reservatory
HPP Fontes Nova
132 MW
HPP Ilha dos Pombos
187 MW
HPP Usina
Subterrnea Nilo
Peanha
380 MW
HPP Santa Branca
56 MW
HPP Pereira Passos
100 MW
Generation Installed Capacity
855 MW
Generation Business
Light Energia
5
th
largest private company in hydro-generation in Brazil
7
New Generation Projects
* Brownfield project, using the existing structure of the Fontes Velha facility
Ribeiro das
Lajes (RJ)
Lajes
Complex
Paraba do
Sul river
2010
2010
2012
R$100 MM
R$56 MM
R$700 MM
21.5 MW
15 MW
110 MW
25 MW
18 MW
195 MW
SHP
Paracambi
SHP Lajes *
HPP Itaocara
Local
Start up
Estimative
Capex
Assued
Energy
Installed
Capacity
Projects
Investment in generation program: 3 new plants increase of 28% in current capacity to
1,093 MW.
8
Trading and Services Business
Light Esco
Energy Sales
Trader
390
30
2
2006 2007
Energy (GWh) Clients
Broker
1,200
30
0
2006 2007
Energy (GWh) Clients
Net Revenue - R$ million
30.8
24.6% 4.4
75.4%
2006 2007
EBITDA - R$ million
3.9
2.2
2006 2007
600%
77%
9
Corporate Governance
Controller discussion
group
Controller discussion
group
Controller group
Controller group
Minority
Minority
General Assembly
General Assembly
Fiscal Council
Fiscal Council
Board of Directors
Board of Directors
Auditors
Committee
Auditors
Committee
Governance and
Sustainability
Committee
Governance and
Sustainability
Committee
Human Resources
Committee
Human Resources
Committee
Finances
Committee
Finances
Committee
Management
Committee
Management
Committee
CEO and Directors
CEO and Directors
Shareholders
Interface
11 Board members: 2 independents
and 1 employees indicated
2 years term
Fiscal Council
Listed at Bovespas New Market
of corporate governance practices
Manuel of Corporate Governance
11 Board members: 2 independents
and 1 employees indicated
2 years term
Fiscal Council
Listed at Bovespas New Market
of corporate governance practices
Manuel of Corporate Governance
10
Mission and Values
To be a major Brazilian
company committed to
sustainability, respected and
admired for its excellence in
services provided to its
clients and the community,
for the value creation to
shareholders and for being
an excellent place to work.
MISSION VALUES
Focus on Results
Meritocracy
Courage and Perseverance
Ethics and Solidarity
Happiness
11
GROWTH
EFFICIECY
GAINS
RETURN TO
SHAREHOLDERS
COMMITMENT TO
THE FUTURE
Key Investment Features
- New generation projects
- Energy trading activity
- Significant investment plan for Rio de Janeiro State
- Losses reduction and prevention
- Cost reduction actions
- Increase in collection rates
- Outsourcing of all non-core activities
- Sale of non-core assets
- Balanced capital structure
- Strong cash flow generation
- Stock appreciation
- Dividend distribution policy
- Improve customer relationship
- Recovery of Lights institutional image
- Great place to work
- Focus on sustainability
12
OPERATIONAL
HIGHLIGHTS
13
Electric Power Consumption (GWh)
21,901
23,299
22,904
23,653
30.2%
31.0% 31.6% 31.0%
15.7% 8.5% 9.9%
13.5%
23.9%
24.3% 24.5%
24.3%
13.0%
13.3%
13.6% 13.5%
17.1%
17.9%
20.3%
22.6%
2004 2005 2006 2007
Residential Industrial Commercial Others Free Market Customers
Energy Distribution Growth
CAGR = 2.6%
14
Investment Program
Main investments (2008)
- Losses: R$ 220 million
- Net (maintenance and expansion): R$ 175 million
- Power plants maintenance: R$ 90 million
- New Projects (SHP): R$ 40 million
Investment in aquisitions & improvements on fixed asset
(R$ million)
347
276
322
355
600
2004 2005 2006 2007 2008
Investments Budget
E
15
93,6%
93,5%
93,5%
94,5%
94,5%
94,4%
94,8%
93,9%
93,8%
94,9%
93,0%
95,8%
95,6%
95,8%
95,9%
96,5%
97,1%
97,4%
98,5%
98,5%
98,0%
99,4%
95,2%
94,1%
92%
93%
94%
95%
96%
97%
98%
99%
100%
Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez
2006 2007
Collection Rate Evolution
Collection Rate
12-month moving average
2006 2007
Billing (R$ MM) 7,913 7,886
Collection (R$ MM) 7,360 7,840
% 93,0% 99,4%
16
Collection Rate Evolution
Collection by Segment
Collection rates presented a significant evolution within all clients
segments
93.2% 93.8%
74.3%
19.8%
63.2%
99.4%
96.3%
110.3%
108.2%
106.2%
Light Total Whole sale market Cedae Supervia Public sector
2006 2007
17
Energy Losses Evolution
Evoluo das Perdas Light
12 meses
6
.
2
5
1
6
.
2
3
2
6
.
4
5
7
6
.
6
1
1
6
.
8
3
4
20,2
19,8
19,5
19,8
20,6
dez/06 mar/07 jun/07 set/07 dez/07
Perdas UDM - GWh Perdas CFIO UDM %
Losses and delinquency are interconnected issues!
Lights strategy focuses on reducing losses, through operational and public
awareness measures, in addition to initiatives carried out with other parties interested
in the reduction of informality.
In 2007 Light presented an 0,8 p.p increase in losses. Meanwhile, collection rates
grow from 93% of total billed energy to 99.4% in 2007.
18
Losses overview
Distribution total losses by
concessions sub-areas (2007)
Non-technical losses by segment
(ago/07 - LTM)
Grande Rio
4.091 GWh
64%
Vale do Paraba
168 GWh
3%
Metropolitana
2.119 GWh
33%
Losses by type
(2007)
Technical Losses
29%
Non-Technical Losses
71%
Non-Risky Areas
61%
Risky Areas
39%
19
Loss Prevention
Integrated action
Institutional
partnership
Public awareness
measures
(internal and
external)
Operational
activities
Integrated actions
to fight losses
20
Loss Prevention Program
Program Phase I: R$78 million Capex in new technology (measuring, shielding)
Higher accuracy on measuring medium and low voltage clients
Application of long distance electronic measurement in about 78,000 low voltage
clients
Energy Consumption (monthly basis)
(include free clients)
3,800,000
Clients
LV
46,3%
883 GWh
398 GWh
15 Clients
HV Free
121 GWh
23 Clients
HV Captives
506 GWh
6,962
Clients
MV
26.5%
6.3%
20.9%
4.6%
41.7%
88 GWh
22,000 Clients
LV - ST
Low Voltage
- Prioritizing on geographical and
economic basis
- Individual measurement
- Centralized measured system
- Telemetric measurement
- Multiplexed network
Medium Voltage
- Installation of Capsule gauges
- Telemetry measurement
- Shielding of 45% of medium voltage
Clients representing 79% of that class
revenue
21
Sustainability
Economic-Financial
S
o
c
i
a
l
E
n
v
i
r
o
n
m
e
n
t
a
l
Governance and
Sustainability
Committee
SGA - Environmental
Management System
SOS Mata Atlntica
Foundation Accord
NBR ISO 14001
Light Institute
Voluntary Program
OHSAS 18001
Transformation Plan
Investment Grade Status
NBR ISO 9001
ISE (Bovespas Sustainability Index)
GRI - Global Reporting Index
Selected to take part in
Bovespas Corporate
Sustainability Index
Adhered to Global Compact
Ethical code
Social Responsibility
Agreement
22
FINANCIAL
RESULTS
23
Financial Highlights
Operational Costs
R$ millions
2,965
1,251
4,215
2,891
2,637
1,643
1,319
4,534
3,955
2005 2006 2007
Non-Manageable Manageable
2.1%
Inflation index (IGP-M): 4.5%
CAGR
CAGR
-24%
+ 2%
Net Revenue
R$ millons
4,886
4,951 4,992
2005 2006 2007
0.7%
24
Operational Expenses
In addition to the 23.9% OPEX reduction, expenses were better
allocated, favoring operating areas rather than supporting areas.
47%
57%
63%
53%
43%
37%
2005 2006 2007
Core areas Support
25
Financial Highlights
*Does not consider eliminations
EBITDA per segment (2007):
CAGR
Generation
15.2%
Distribution
84.5%
Comercializ.
0.3%
EBITDA
R$ millions
765
738
1.105
2005 2006 2007
13,0%
Net Income
R$ millions
243
-150
1.077
2005 2006 2007
26
Debt profile
Rated as
Investment Grade
(S&P)
brA-
(1) Net Debt = Total Debt - Cash, excludes Braslight
Foreign
Currency
8%
Brazilian
Currency
92%
Short Term
6%
Long Term
94%
* 5% if hedge is
considered
*
Net Debt
1
R$ million
3.147
2.540
1.462
2005 2006 2007
-53,6%
27
Amortization Schedule
Average Cost : US$ + 6.51% p.a.
R$: 12.17% p.a.
Average Term: 4.8 years
Average Cost : US$ + 6.51% p.a.
R$: 12.17% p.a.
Average Term: 4.8 years
Principal only
Amortization Schedule*
(R$ millions)
52
70
95
89
86
212
342
166
2008 2009 2010 2011 2012 2013 2014 After 2014
28
Return to Shareholders: Turnaround recognition
R$ 721 million in dividends (a 12.4% yield)
Minimum 50%dividend policy
Light x Ibovespa x IEE
2007
60
80
100
120
140
160
180
d
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z
/
0
6
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7
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Light
34%
Ibovespa
44%
IEE
24%
R$/ao
01/01/07 21,37
28/12/07 28,65
R$ MM
Enterprise Value 7.046
Market Capitalization 5.829
Trading volume/day (2007) 8,3
29
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.
Important Notice