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1
Light S.A.Corporate Presentation
November 2007
2
Light Energia(Geração)
Light Esco Ltda(Comercialização) Outros(**)
Light S.A.
(Holding)
Light S.E.S.A (*)(Distribution)
Light Energia(Generation)
Light Esco Ltda(Trading)
Lightger(New Projects)
Light’s Corporate Structure
� 4th largest integrated Company in the Brazilian electric industry
� 5th largest private Company in hydro-generation
� 3rd largest distribution Company
(*) Includes Light Overseas and Light Energy
3
�The Capital Stock comprises 203,462,739,012 common shares as of October 31st, with no par value.
Shareholder’s Structure
AGCAndrade Gutierrez
Concessões
LUCELUCE do Brasil
Fundo de Investimento em Participações
PCPPCP Energia Participações
RMERio Minas EnergiaParticipações S.A.
LIGHT S.A.
25% 25% 25% 25%
52.2%BNDESPAR
MARKET
33.7%
14.1%
Free Float: 47.8%
CEMIGCompanhia Energética
de Minas Gerais
Country´sbiggestindividualelectricity distributor.
Andrade Gutierrez Group´s divisionthat invests in
public services concessions.
Brazilian private investors group (includes Braslight).
Private Equity Fund that invests in the Brazilian electric sector.
4
Light’s History
Aug,10 2006
Aug,10 2006
1905 1979 May 96 Apr 98 Oct 01 Jan 02 Jul 05 Aug,10 2007
Aug,10 2007
Light’s Privatization
Public Company
Eletropaulo’sPrivatization
Split ofEDF - AES
Acquisition by EDF
Light joined Bovespa´s“Novo Mercado”,
Brazil’s highest level ofcorporate 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
5
- 3.8 million clients- Billed Energy in LTM - 18,333 GWh- 72% of the consumption of Rio de Janeiro state
(2nd GDP in Brazil)- Gross Revenue (LTM) - R$8.0 billion- Net Revenue (LTM) - R$5.3 billion
Distribution BusinessLight SESA
� 3rd largest energy distribution Company in Brazil
6
Lajes ReservatoryHPP Fontes Nova132 MW
HPP Ilha dos Pombos187 MW
HPP Usina Subterrânea Nilo Peçanha380 MW
HPP Santa Branca56 MW
HPP Pereira Passos100 MW
Generation Installed Capacity855 MW
Generation BusinessLight Energia
� 5th largest private company in hydro-generation in Brazil
7
New Generation Projects
New Generation Projects
* Brownfield project, using the existing structure of the Fontes Velha facility
Ribeirão das Lajes (RJ)
Lajes Complex
Paraíba do Sul river
2010
2010
2012
R$100 MM
R$28 MM
R$600 MM
21.5 MW
in study
110 MW
25 MW
18 MW
195 MW
SHPParacambi
SHP Lajes *
HPP Itaocara
Local Start up EstimativeCapexAssued
EnergyInstalled Capacity
Projects
8
Trading and Services BusinessLight Esco
Energy Trading/Brokerage in Free Market�Trading: 278 GWh as of September 2007 and a portfolio of
over than 20 clients: including Unilever and InBev;�Brokerage: 892 GWh as of September 2007 and a portfolio of
over than 10 clients: including TV Globo and Gerdau Steel
Services and Infrastructure�Energy generators rental for the Pan-American Games;�Quality improvement of electric structures for the
“Sambódromo”;�Management of High Voltage connection for the bottling
industry;�Operation of Rio Office Park’s District Cooling Center
� Intelligent Energy for Sustainable Development
9
Management Team
PeopleAna Matte
ConcessionDevelopmetPaulo Born
EnergyLeonardo
Lins
ClientsRoberto
Alcoforado
Former CEO of Celpe
Former Senior Executive Officer of Chesf
Former Vice-CEO of Duke Energy
Former Senior Executive Officer of Telsul
CorporatePaulo Pinto
LegalLuiz
Cristofaro Former Senior Executive Officer of MottaFernandes
Former Senior Executive Officer of Eletrobras
CEOJosé Luiz Alquéres
Engineer. - Former Alstom Brasil’s CEO;- Senior Executive Officer of BozanoSimonsen; - Eletrobrás’ CEO;- BNDESPAR Officer; - National Secretary of Energy;- CERJ’s CEO and; - Senior Executive Officer of Light.
Economist. - Former Globopar’s CEO and;- Petrobras’s CFO.
CFO and IRORonnie Vaz Moreira
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
Corporate Governance
1
12
GROWTH
EFFICIECYGAINS
RETURN TO SHAREHOLDERS
COMMITMENT TO THE FUTURE
Key Investment Features
- New generation projects- Renew of energy initial contracts- Energy trading activity- Significant investment plan for Rio de Janeiro State- Balanced capital structure
- Cost reduction actions- Loss prevention strategy- Increase in collection rates- Outsourcing of all non-core activities- Sale of non-core assets
- Strong cash flow generation- Stock appreciation- Dividend distribution policy- Listed on BOVESPA’s Novo Mercado
- Improve customer relationship- Recovery of Light’s institutional image- Great place to work- Focus on sustainability
13
OPERATIONALHIGHLIGHTS
14
Energy Distribution Growth
CAGR = 2.6%
Electric Power Consumption (GWh)
21,94423,323 23,006 23,673
30.1% 31.2%31.5%31.0%
15.7% 8.5%9.9%13.5%
23.9% 24.3%24.4%24.3%
13.0% 13.3% 13.5% 13.4%
17.3%17.9% 20.6% 22.6%
2004 2005 2006 LTM07
Residential Industrial Commercial Others Free Market Customers
15
Investment Program
Main investments (2007-10)- Improvement of Medium Voltage Network;- Control centers update;- Substation and distribution automation;- Tension level standardization;- Fighting losses technology
Investment in aquisitions & improvements on fixed assets(R$ million)
355347
276
199
322
157
1.427
2004 2005 2006 2007 2008-10*
Investments Budget* Does not include investments in new generation projects
16
96.9%97.2%
98.3%
93.0%
93.8%93.9%94.4%94.5%
93.5%93.6%
95.2%
93.5%
94.5% 94.8% 94.9%
96.9%96.4%
96.0%95.8%96.2%
94.6%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2006 2007
Collection Rate Evolution
Collection Rate12-month moving average
3Q06 3Q07 9M06 9M07Billing (R$ MM) 1,841 1,811 5,941 5,935Collection (R$ MM) 1,668 1,790 5,491 5,900% 91% 99% 92% 99%
17
Loss Prevention Program
� Program Phase I: R$78 million Capex in new technology (measuring, “shielding”)
� Higher accuracy on measuring medium and low voltage clients
� Application of long distance electronic measurement in about 78,000 low voltage clients
Energy Consumption (monthly basis)(include free clients)
3,800,000 ClientsLV
46,3%
883 GWh398 GWh15 ClientsHV Free
121 GWh23 ClientsHV Captives
506 GWh6,962ClientsMV
26.5%
6.3%
20.9%
4.6%
41.7%
88 GWh22,000 ClientsLV - ST
Low Voltage- Prioritizing on geographical and
economic basis- Individual measurement- Centralized measured system- Telemetric measurement- Multiplexed network
Medium Voltage- Installation of Capsule gauges- Telemetry measurement- “Shielding” of 45% of medium voltageClients representing 79% of that classrevenue
18
Service Quality Evolution
� IASC AWARD 2006: Light was ranked second best electricity distributor in the Southeastern region
� Electricity Award 2007, promoted by “Eletricidade Moderna” magazine
� ELC and EFC are within ANEEL’s allowed limit and one of the lowest of the Southeastern region
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19
Sustainability
Economic-Financial
Social Environmental
Governance and Sustainability
Committee�SGA - Environmental
Management System�SOS Mata Atlântica
Foundation Accord� NBR ISO 14001
�Light Institute �Voluntary Program �OHSAS 18001
� Transformation Plan� Investment Grade Status� NBR ISO 9001
�ISE (Bovespa’s Sustainability Index)�GRI - Global Reporting Index
20
FINANCIALRESULTS
21
Operational CostsR$ million
2,891 2,887
1,643 1,2483,543
4,443 4,5344,268
2004 2005 2006 LTM07
Non-Manageable Manageable
6.4%
Financial Highlights
Inflation index (IGP-M): 4.1%
Net RevenueR$ million
4,084
4,8865,423 5,335
2004 2005 2006 LTM07
9.3%CAGR
CAGR
-24%
22
Operational Expenses
� Better OPEX distribution between support and core areas after the adoption of “packages” methodology
56% 47% 57% 62%
44% 53% 43% 38%
2004 2005 2006 E2007
Core areas Support
23
Distribution85.7%
Generation14.0%
Comercializ.0.3%
Financial Highlights
*Does not consider eliminations
EBITDA per segment (9M07):
Net IncomeR$ million
-98
243
-150
942
2004 2005 2006 LTM07
EBITDAR$ million
838 765 738
1,398
2004 2005 2006 LTM07
18.6%CAGR
24
Debt profile
Rated asInvestment Grade
(S&P)brA-
(1) Net Debt = Total Debt - Cash, excludes Braslight
Short Term8%
Long Term92% Foreign
Currency9%
Brazilian Currency
91%
Net Debt1
R$ million
4,223
3,147
2,540
1,217
2004 2005 2006 Sep-07
-71.2%
25
Amortization Schedule*
(R$ million)
93 99139 128
299 346 342 303
2008 2009 2010 2011 2012 2013 2014 2015-2024
Amortization Schedule
Average Cost : US$ + 6.55% p.a.R$: 12.3% p.a.
Average Term: 4.8 years
Average Cost : US$ + 6.55% p.a.R$: 12.3% p.a.
Average Term: 4.8 years
• Principal only• Pro-forma, considering the amortization of debt in foreign currency amounting US$ 160 MM and the raising of R$ 450 MM
26
Return to Shareholders: Turnaround recognition
� R$ 518 million in dividends (a 8.3% yield)
� Minimum 50%dividend policy
Light x Ibovespa x IEE08/10/06 = 100 until 10/31/07
80
100
120
140
160
180
200
220
240
Aug-0
6Sep
-06
Oct-06
Nov-0
6Dec
-06
Jan-
07Feb
-07
Mar-0
7Apr
-07
May-0
7Ju
n-07
Jul-0
7Aug
-07
Sep-0
7Oct-
07
1 year of RME
Light104%
Ibovespa75%IEE50%
R$/share08/10/06 15.7010/31/07 31.95
2007LIGT3 39%IEE 28%IBOV 47%
R$ MMEnterprise Value 7,636Market Capitalization 6,501Trading volume/day 8.6
27
Annex
28
LOYAL CLIENT
EFFICIENT MACHINE
RESULTS
COMMITMENT TO THE FUTURE
Transformation Plan
RESULTADOS
P1 – Clients – get to know to serve better P2 – Selling more and betterP3 – Receiving 100%P4 – No stealing
P5 – Efficiency in processesP6 – Structuring the company of the futureP7 – Aligned suppliersP8 – Prudent investments
P9 – Capital structure review
P10 – Well managed contingencies
P11 – Valorization of the concession
P12 – A great place to work
P13 – Community awareness and interaction
P14 – Risk management
29
Management Achievements
Transformation Plan� 14 projects divided into 4 sub-groups: Loyal Client, Efficient Machine, Results and Commitment to Future� 63 metrics based on Balanced Score Card� 90% of the projects are on time or finished
Main Results� Receivables Negotiation with the Company’s largest clients of more than R$500 million (the cities, Water Company and Train Company): net cash effect of R$240 million� Approx. R$500 million reversal of provision� Improved relationship with executive and legislative� Better services rendered were recognized by Clients: 2nd position at ANEEL’squality perception award� Possibility of investing in new generation capacity (no investments were made in the last 8 years)� Balanced capital structure and low leverage levels
30
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Important Notice