INVESTOR RELATIONS

Bi-monthly Newsletter

Year I N. 1

3 TARIFF REVISION CYCLE

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n August 6th, the Brazilian Electricity Regulatory Agency (ANEEL) disclosed the preliminary proposal for the Third Tariff Revision to be applied in November. ANEEL proposes a reduction of 3.28% in residential consumer bills and an average reduction of 6.70% for the highvoltage market. For medium-voltage consumers, the regulatory agency proposes an adjustment of - 1.48%. Regarding the Regulatory Assets Base (RAB), the preliminary proposal establishes a Gross RAB of R$11.5 billion and a Net RAB of R$6.4 billion. These amounts already include the effects of the inspection of Asset Under Service, conducted in last April. The Asset Appraisal Report includes the amounts of Smaller Components (COM) and Additional Costs (CA) defined by ANEEL. In relation to non-technical energy losses, the start point in this preliminary proposal for the regulatory target of non-technical energy losses over the low-voltage market is 31.82%, reflecting the direct application of the methodology defined in the Technical Note. The reduction speed in the loss curve was calculated in the preliminary proposal at 1.195 p.p. per

annum, lower than the speed of the previous cycle, which was 1.79 p.p. per annum. The final target for the 3rd cycle would be 25.81%. The preliminary proposal does not include the evaluation of ANEELs technical area on the request for treatment of non-technical energy losses submitted by Light SESA. The executive board of ANEEL recommended the creation of a work group made up of Agency experts, in order to evaluate in situ the real complexity of the concession and the efforts being made by Light

SESA to combat losses in order to present a diagnosis and recommendation for how to handle, from a regulatory perspective, the concessionaire's non-technical energy losses. In August, a commission composed of six ANEEL technicians, which was accompanied by Light technicians, visited sites such as Complexo do Alemo, Vigrio Geral, Cosmos and Rio das Pedras, among other communities, to learn more about the field work developed by teams dedicated to combating energy losses.

APZ: ONE YEAR OF SUCCESS

he project reas de Perda Zero (APZ Zero Lost Areas) is celebrating its first year of implementation with great success. APZ has reached 20 units and 318,000 clients in the Baixada Fluminense, Zona Oeste and Zona Norte areas of the city of Rio de Janeiro. With investments in network protection, installation of electronic meters and well-trained workforce, losses fell on average by 26 p.p., from 48% to 23%, since the beginning of the project.

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of all clients of Light, explained Marco Vilela, Light s commercial superintendent. The project focuses on small clients and areas with high loss and default ratios. The welltrained teams perform tasks related to electricity provision services, including negotiations for payment in installments of clients past due bills. To further expand the programs initiatives, on September 5th, Light and Sebrae signed a protocol of intentions. The professionals participating in the APZ project present themselves in the Companys uniform and act as consultants for evaluating the entire electricity network, giving tips for saving energy, updating clients registrations, verifying meters, fixing electricity connections and eliminating illegal connections.

The union of the Centralized Measurement Systems technology and daily operation of our dedicated teams is key to the success of APZ. Since its implementation in August of 2012, the project has recorded an average increase of 7 percentage points in the collection rate. We want to reach 30 units and 400,000 clients by the end of 2013, which will represent approximately 10%

The union of the Centralized Measurement Systems technology and daily operation of our dedicated teams is key to the success of APZ. Marco Vilela.

LIGHT DISCLOSED 2 QUARTER RESULTS

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n 2Q13, net income totaled R$58.2 million, 46.2% more than in 2Q12, mainly driven by the operating performance of the distribution and generation segments and the reduction in net financial expenses. Considering the regulatory assets and liabilities (CVA) of the distribution company, not included in the statement of income, adjusted net income totaled R$136.9 million; 52.5% up on 2Q12. In 2Q13, total energy consumption rose by 2.5% in relation to the same period last year, mainly driven by the 5.1% increase in commercial consumption and the 4.1% rise in industrial consumption. Consolidated net revenue in the first half of 2013 was R$1,671 million; 2.6% up the same period in 2012. Consolidated EBITDA (income before interests, taxes, depreciation and amortization) was R$277.9 million in 2Q13, 8.9% up year over year. Adjusted for the regulatory asset (CVA), 2Q13 adjusted EBITDA stood at R$397.2 million in 2Q13, 20.1% up from 2Q12. Collections performed well in 2Q13, reaching 104.2% of billed consumption, 0.3 p.p. up yearon-year, chiefly due to the ongoing default combat program. Non-technical energy losses in the last 12 months totaled 5,953 GWh, representing 44.2% of billed energy in the low-voltage market (ANEELs calculation methodology), 1.2 p.p. down on December 2012. INVESTMENTS Light invested R$326.7 million in the first half of 2013, in line with the 1H12 figure. The distribution segment absorbed the largest portion, R$272.8 million, which was allocated to initiatives aiming to strengthen the network and improve quality, and to loss combat initiatives (network protection, fraud regularization, etc). Commercialization and energy efficiency Investments increased from R$2.7 million in 2Q12 to R$33.1 million in 2Q13, due to the cogeneration project with a major beverage company. For more details, access our earnings release on our website ri.light.com.br.

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FUNCTIONAL TOOLS ARE IR WEBSITE HIGHLIGHTS

iming at facilitating investors access Light i nformation, the IR website, ri.light.com.br, offers an agile browsing, including clarifications about the company and the market. Among the tools available, we point out the Investment Simulator, the Excel spreadsheets containing detailed data about the operation and the financial performance, besides a Regulation section including information about tariff adjustments and revisions. In addition, you can follow our Investor Relations Webpage at main social networks, such as Facebook and Twitter.

The Excel spreadsheets offer an even more detailed database, updated on a quarterly basis, including information additional to the earnings release. In 2012, the website won the Greatest Improvement IR Website award in Latin America promoted by IR Global Rankings. The rating system is based on an extensive technical research on IR websites, where 285 companies participate in the region. The website makes available Light strategic information for our financial analysts, thus, allowing a better communication with them. This award reiterates we are in the right track, affirms Gustavo Werneck, Light Investor Relations Manager.

With the Investment Simulator, you can calculate the return on investment made in the company shares during a certain period in the past. Any proceeds and other benefits deriving from holding the company shares are converted into a fractionary amount of shares by the closing price on the day immediately preceding the benefit.

This electronic newsletter is intended for Lights investors. The bimonthly publication is a joint effort of the Superintendence of Finance and Investor Relations and the Investor Relations Department, with the coordination of Lights Superintendence of Corporate Communication. Suggestions and questions can be forwarded to ri@light.com.br . If you no longer wish to receive this newsletter, please contact ri@light.com.br.