Light SA Release 2Q11

8/2/2019 Light SA Release 2Q11

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Consumption in the concessionarea increases by 3.1% in thequarterNet revenue totals R$1,638 million, EBITDA reaches R$241million and net income amounts to R$45 million in 2Q11

Total energy consumption in 2Q11 was 3.1% higher than in thesame quarter last year, totaling 5,669 GWh. Residential and

commercial consumption increased by 2.6% and 5.0%, respectively,

due to structural economic growth in Lights concession area.

Consolidated net revenue, excluding revenue from construction,came to R$1,458.7 million in the quarter, 4.1% up on 2Q10,reflecting the increase in energy consumption, especially in the

higher-tariff segments;1

Consolidated EBITDA amounted to R$240.8 million in 2Q11,36.7% down year-on-year due to higher costs from purchased

energy, PMSO and provisions, accompanied by an EBITDA margin of

16.5%, versus 27.1% in 2Q10.

Net income totaled R$45.3 million,67.1% down on the R$137.7million reported in 2Q10;

Reflecting the Companys continuous energy-loss reduction efforts,energy losses fell for the fifth consecutive quarter, closing at 21.4%

of the grid load, while non-technical losses represented 41.3% of

billed energy in the low-voltage market (Aneel criterion).

At the end of 2Q11, the Companys net debt totaled R$2,549.2million, 41.2% up on March 2011, and the net debt/EBITDA ratio

stood at 2.0x.

Collections in the last 12 months reached 97.5% of billedc

o

ns

u

m

p

t

i

o

n

1To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billed energy of the free

consumers Valesul, CSN and CSA was excluded, in view of these customers planned migration to the core network. Energyconsumption by these clients totaled 367 GWh in 2Q11 and 450 GWh in 2Q10.

Rio de Janeiro, August 5,2011

BM&FBOVESPA: LIGT3OTC: LGSXY

Total Shares: 203,934,060shares

Free Float: 97,629,463 shares(47.87%)

Market Cap: 5,278 Million(08/04/11)

IR Contacts

Joo Batista Zolini CarneiroCFO and IRO

Gustavo WerneckIR Manager

Phone: +55 (21) 2211-2650/2660

Fax: +55 (21) 2211-2787www.light.com.br/ri

Email:[email protected]

Conference Call

Date: 08/08/2011Time: 4:00 p.m. (Brazil)

3:00 p.m. (US ET)

Phone numbers:

Brazil:+55 (11) 4688-6361

Other countries:+1 (786) 924 6977

Simultaneous translationinto English

Webcast:www.light.com.br

(Portuguese and English)

Operational Highlights (GWh) 2Q11 2Q10 Var. % 1H11 1H10 Var. %

Grid Load* 8,335 8,194 1.7% 18,191 17,832 2.0%

Billed Energy - Captive Market 4,880 4,755 2.6% 10,413 10,185 2.2%

Consumption in the concession area1 5,669 5,498 3.1% 11,960 11,585 3.2%

Transported Energy - TUSD1 1,117 1,259 -11.3% 2,379 2,327 2.2%

Sold Energy - Generation 1,334 1,436 -7.1% 2,817 3,121 -9.7%

Commercializated Energy (Esco) 457 220 108.2% 764 426 79.3%

Financial Highlights (R$ MN)

Net Revenue** 1,459 1,402 4.1% 3,146 2,999 4.9%

EBITDA 241 380 -36.7% 676 858 -21.2%

EBITDA Margin** 16.5% 27.1% - 21.5% 28.6% -

Net Income 45 138 -67.1% 212 362 -41.6%

Net Debt*** 2,549 1,805 41.2% 2,549 1,805 41.2%

* Own load + network use

** Not considering construction revenue

*** Financial debt - cash
http://www.light.com.br/rihttp://www.light.com.br/rimailto:[email protected]:[email protected]:[email protected]://www.light.com.br/http://www.light.com.br/http://www.light.com.br/http://www.light.com.br/http://www.light.com.br/mailto:[email protected]://www.light.com.br/ri


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, 0.6 p.p. below June 2010.

Table of Contents

Operating Performance ................................................................................... 3

Distribution ............................................................................................. 3

Energy Losses ................................................................................... 8

Communities ..................................................................................... 9

Collection ........................................................................................ 10

Operating Quality ............................................................................. 11

Generation ............................................................................................. 12

Commercialization and Services ............................................................... 12

Financial Performance ................................................................................... 13

Net Revenue .......................................................................................... 13

Consolidated ...................................................................................... 13

Distribution ........................................................................................ 13

Generation ......................................................................................... 14

Commercialization and Services ............................................................ 14

Costs and Expenses ................................................................................ 14

Consolidated ...................................................................................... 14

Distribution ........................................................................................ 14

Generation ......................................................................................... 16


EBITDA ................................................................................................. 18

Consolidated ...................................................................................... 18

Distribution ........................................................................................ 18

Generation ......................................................................................... 19


Consolidated Financial Result ................................................................... 20

Indebtedness ......................................................................................... 21Net Income ............................................................................................ 22


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Capital Expenditures ............................................................................... 22

Generation Capacity Expansion Projects .................................................... 22

Cash Flow .............................................................................................. 24

Corporate Governance .................................................................................. 25Capital Market .............................................................................................. 27

Dividends .............................................................................................. 28

Recent Events .............................................................................................. 30

Disclosure Program ....................................................................................... 31

Release Segmentation

Light S.A. is a holding company that controls wholly-owned subsidiaries pertaining to three business

segments: electricity distribution (Light SESA), electricity generation (Light Energia) and electricitycommercialization/services (Light Esco and Lightcom). In order to improve the transparency of its

results and to provide investors with a better basis for evaluation, Light also presents its results by

business segment.

Operating Performance

Distribution

4,755 4,880

789743

5,4985,669

2Q10 2Q11

423 426

1,505 1,554

835 857

565 574

133 167

45 48

1,992 2,043

988 1,000

1,6391,721

880 905

2Q10 2Q11 2Q10 2Q11 2Q10 2Q11 2Q10 2Q11

+2.6%

+1.2%

+5.0%

+2.8%

+3.1%

Residential Industrial Commercial Others Total

Captive Free

TOTAL ENERGY CONSUMPTION (GWh)

(CAPTIVE + FREE) - QUARTER


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Total energy consumption in Light SESAs concession area (captive customers + transport of free

customers2) came to 5,669 GWh in 2Q11, a 3.1% increase over 2Q10, thanks to growth in both

markets.

If the consumption of the free clients CSN, Valesul and CSA is taken into account, total consumption

came to 6,036 GWh in 2Q11, versus 5,948 GWh in 2Q10.

Performance was mainly fueled by the expansion of the residential and commercial segments, which

moved up by 2.6% and 5.0%, respectively, in turn driven by structural economic growth in Lights

concession area. Temperatures averaged 22.7C in the quarter, in line with 2Q10 and 0.8C below the

historical average for the period.

Residential consumption totaled 2,043 GWh in 2Q11, 51 GWh more than in 2Q10 and accounting for

36.0% of total energy consumption, primarily due to the economic improvement in the state of Rio de

Janeiro, and, consequently, the municipalities in Lights concession area.

The number of billed residential clients grew by 1.9%, totaling 3.8 million in June 2011, with an

average monthly consumption of 179.9 kWh, compared to 178.6 kWh in 2Q10.

The commercial segment, which consumed 1,721 GWh in 2Q11, accounted for 30.4% of total energy

consumption, 5.0% more than in the same period in 2010, due to the upturn in economic activity in

Lights concession area. Free-market consumption increased by 25.4%, due to the migration of 19

clients from the captive market.

Industrial consumption came to 1,000 GWh, 1.2% up on 2Q10 and accounting for 17.6% of the total

market, led by the metallurgy, rubber/plastic materials, non-metallic minerals, and metal product

segments.

The other consumption segments, which accounted for 16.0% of the total market, posted growth of

2.8% over 2Q10. The rural, government and public utilities categories, which represented 0.2%, 6.7%

and 8.7% of the total market, respectively, all recorded positive performances.

2 To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billed energy of the freeconsumers Valesul, CSN and CSA was excluded, in view of these customers planned migration to the core network. Energyconsumption by these clients totaled 367 GWh in 2Q11 and 450 GWh in 2Q10.


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1,4001,547

10,18510,413

1H10 1H11

872 852

3,2073,284

1,697 1,748

1,064 1,114

247 337

89 95

4,408 4,531

1,937 1,966

3,4543,621

1,7861,843

1H10 1H11 1H10 1H11 1H10 1H11 1H10 1H11

+2.8%

+1.5%

+4.8%

+3.2%

+3.2%

Residential Industrial Commercial Others Total

Captive Free

TOTAL ENERGY CONSUMPTION (GWh)

(CAPTIVE + FREE) - HALF

11,585 11,960


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Total energy consumption in Light SESAs concession area (capt ive customers + transport of free

customers3) came to 11,960 GWh in 1H11, a 3.2% increase over 1H10, driven by the growth in both

the free market (+10.5%) and the captive market (+2.2%).

If the consumption of the free clients CSN, Valesul and CSA is taken into account, total consumption

came to 12,929 GWh in 1H11, versus 12,456 GWh in 1H10.

In the half-yearly comparison, the commercial and residential segments, with respective growth of

4.8% and 2.8%, were chiefly responsible for the excellent performance of the market as a whole.

In the residential segment, average monthly consumption per consumer moved up by 1.1%, from

198.0 kWh in 1H10 to 200.2 kWh in 1H11, reflecting an increase in the acquisition and use of home

appliances, due to the upturn in household income in recent years.

Commercial clients consumed 3,621 GWh, accounting for 30.3% of total consumption. The retail,building service, landscaping, food and professional association segments did particularly well, with

respective increases of 3.4%, 5.1%, 17.2, and 13.8%, accounting for 33.7%, 15.5%, 9.2%, and 5.7%

of the total, respectively.

In 1H11, industrial consumption came to 1,966 GWh, 1.5% higher than in the first half of 2010. Six

clients migrated to the free market in the interim, having recording zero consumption in the captive

market in 1H10.

3 To preserve comparability with the market approved by Aneel in the tariff adjustment process, the billed energy of the freeconsumers Valesul, CSN and CSA was excluded, in view of these customers planned migration to the core network. Energyconsumption by these clients totaled 367 GWh in 2Q11 and 450 GWh in 2Q10.


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Energy Balance

Residential232.9 4,530.6

CCEAR Billed Industrial

Light Energia Energy 851.6

168.8 Own load 10,413.4

Light Commercial

14,331.5 3,283.5

Losses +

2,665.5 Non Billed Others

14,592.2 Energy 1,747.7

3,918.1

8,098.7 Basic netw.

losses

Adjustment 0.5

3,150.1

276.2

(*) Others = Purchase in Spot - Sale in Spot.

Note: 1) At Light S.A., there is intercompany power purchase/sale elimination

2) Power purchase data on 04 / 12 / 2011. (subject to changes)

OTHERS(*)

(CCEE)

NORTE FLU

(CCEE)

Required E.

(CCEE)

AUCTIONS

(CCEE)

ITAIPU

(CCEE)

DISTRIBUTION ENERGETIC BALANCE - GWhPosition: January - June 2011

PROINFA

260.1

Energy Balance (GWh) 2Q11 2Q10 Var.% 1H11 1H10 Var.%= Grid Load 8,335 8,194 1.7% 18,191 17,832 2.0%

- Energy transported to utilities 738 778 -5.2% 1,480 1,599 -7.4%

- Energy transported to free customers* 1,117 1,259 -11.3% 2,379 2,327 2.2%

= Own Load 6,480 6,157 5.3% 14,332 13,906 3.1%

- Captive market consumption 4,880 4,755 2.6% 10,413 10,185 2.2%

Low Voltage Market 3,174 3,067 3.5% 6,896 6,656 3.6%

Medium Voltage Market 1,706 1,687 1.1% 3,518 3,529 -0.3%

- Losses + Non Billed Energy 1,600 1,402 14.1% 3,918 3,722 5.3%

*Including CSN, Valesul and CSA


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Energy Losses

Light SESAs total energy losses amounted to 7,619 GWh, or

21.42% of the grid load, in the 12 months ended June 2011,

0.12 p.p. up on March 2011.

In June 2011, non-technical losses totaled 5,326 GWh,

representing 41.3% of billed energy in the low-voltage

market, or 14.97% of the grid load, 0.3 p.p. and 1.1 p.p.

down on March 2011 and June 2010, respectively.

For the fifth consecutive quarter, Light recorded a reduction

in its non-technical losses/low-voltage market ratio,

reflecting the Company's ongoing efforts to reduce losses.

Conventional energy recovery processes, such as the

negotiation of amounts owed by customers where fraud has

been detected, resulted in the recovery of 82.3 GWh in

1H11, 8.1% higher than in the same period last year. Fraud

regularization programs yielded a total of 40,668 normalized

clients, 2.3% up on 210.

At the close of June 2011, there were 153,000 electronic

meters installed and 207,000 clients had network

protection. The ratification of electronic meters is critical

for the success of the loss reduction program. By the end

of the quarter, three suppliers had been approved by

Inmetro, two of which for centralized telemetering and

one for individualized telemetering. In July, CAM Brasil,

which has been operating in the Brazilian market since

2001, also received approval for its centralized

telemetering devices. The addition of another supplier willspeed up the installation pace, thereby reducing losses

more effectively.

The smart grid R&D program also continued to move

ahead. The first industrial prototypes of the intelligent

metering devices developed and manufactured by Eletra,

which was hired by Light, have already been concluded

and are in the final phase of laboratory testing. The Companys mobile phone and computer user-

interaction channels (social networks and interactive website) are also in the final phase of

development. Field tests (pilot project) of both technologies will begin by the end of the year.

Light Losses Evolution

12 months

7,

549

7,

544

7,

493

7,

543

7,

619

15.39% 15.18% 15.00% 15.00% 14.97%

21.70% 21.48% 21.29% 21.30% 21.42%

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

Losses (GWh)

Losses / Grid Load %

Non-technical losses % Grid Load

Non tecnical losses / Low Voltage market

12 months

5,

326

5,

312

5,

278

5,

330

5,

352

41.3%41.6%41.8%42.1%42.4%

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

Non Tecnincal Losses (GW)

Non tecnical Losses % Low Voltage Mkt

76.182.3

1H10 1H11

Recovered Energy (GW)

8.1%

39,766 40,668

1H10 1H11

Normalized Costumers

2.3%


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Communities

The low-income community loss-reduction program has advanced each quarter. In 2Q11, Light moved

into one more pacified community. In 2011, the Company, which is already present in nine such

communities, plans to move into another 11: Ladeira dos Tabajaras, Morro dos Cabritos, Pavo-

Pavozinho, Morro da Providncia, Borel, Novo Rio, Morro do Salgueiro, Complexo do Alemo (part 1),

Morro dos Macacos (part 1), Cidade de Deus (part 2) and Batan (part 2).

The loss reduction program in these communities is one of the Companys current top priorities. In

2Q11, another two contractors were hired, giving a total of five.


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Collection

The 2Q11 collection rate exceeded 100% of the

billed total, reaching 102.0%, 0.5 p.p. up on

2Q10. The collection rate for the past 12 months

was 97.5% of billed consumption, 0.6 p.p. down on June

2010 and 0.1 p.p. above June 2009. The retail, large

customer and public sect or segments recorded collection

rates of more than 100%. In the first half, the collection

rate stood at 97.7%, 0.8 p.p. down on the 98.5% recorded

in the same period last year, due to the reduction in 1Q11,

in turn caused by seasonal spending priorities and an upturn

in consumer debt. In order to overcome the beginning-of-year difficulties, default-combating activities were

intensified, leading to a hefty 68% increase in the number of

disconnections and an 18% upturn in the registration of clients with past due bills betwee n the six-

month periods.

In 2Q11, Provisions for Past Due Accounts (PPD) totaled

R$79.5 million, representing 4.0% of gross billed energy, an

increase of R$4.2 million in relation to 2Q10, due to: (i)

substantial billed energy in the previous quarter, which

impacted the provisioning of higher bills in 2Q11, and (ii)

higher billed energy growth in the retail segment, which has

a lower collection rate. According to the sectors

provisioning criteria, provisions related to past due bills

of residential clients are constituted 90 days after the due

date.

Collection rate

12 months moving average

97.4%

98.1%

97.5%

Jun-09 Jun-10 Jun-11

Collection Rate per Segment

Quarter

98.9%

112.9%

101.3%

109.0%

101.4%100.7%

Retail Large Customers Public Sec tor

2Q10 2Q11

R$ MN 2Q11 2Q10 1H11 1H10

Billing 2,190 2,109 4,708 4,414

Collection 2,233 2,141 4,600 4,347

Collection Rate 102.0% 101.5% 97.7% 98.5%

R$ Million 2Q11 2Q10 Var. (R$) 1H11 1H10 Var. (R$)

PDD 79.5 75.3 4.3 143.9 138.8 5.1

Provisions for Past Due Accounts

3.2% 3.3% 3.3%

1H09 1H10 1H11

PDD/Gross Revenue (Billed Sales)


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Operating Quality

The Company invested R$65.3 million in 2Q11 to improve the quality of its electricity supply business

and increase the capacity of its distribution network, 81.2% more than the R$36.0 million invested in

2Q10. In 1H11, investments totaled R$118.3 million, 89.4% up on 2Q10.

In 2Q11, in the distribution network, 81.4 km of low-voltage cable were replaced by multiplex cable,

and 115.5 km of medium-voltage open network were replaced with spacer cable. A total of 451

medium-voltage circuits were inspected, 1,763 transformers were replaced and 75,441 trees were

pruned. In the underground distribution network, 2,432 transformer vaults and 3,774 manholes were

inspected. In addition, 125 transformers and 436 underground reticulated system protectors were

maintained and inspected.

At the end of June, the equivalent length of interruption indicator (ELC), expressed in hours, registered

14.63 hours in the last twelve months, while the equivalent frequency of interruption indicator (EFC),

expressed in occurrences, stood at 7.03 times. The higher number of occurrence removals in 2010, due

to the so-called critical days", calculated in accordance with ANEELs methodology, continued to affect

the indicators in 2011. If we compare them with no removals, i.e. in terms of what consumers actually

experienced, both indicators improved, with the ELC dropping from 11.72 hours in 1H10 to 10.37 hours

in 1H11, with the EFC falling from 5.07 times to 4.49 times in the same period.

ELC / EFC - 12 Months

6.03

9.13

14.63

7.03

11.63

6.23EFC

ELC

Jun-11 Jun/10* Jun-09

ELC Equivalent Length of Interruption per Consumption Unit (hs)

EFC Equivalent Frequency of Interruption per Consumption Unit (n.)

*Does not consider the effects of 11/10/2009 occurrence in the national interconected system.


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Generation

Energy sold on the captive market (ACR) totaled 1,014.0 GWh in 2Q11, in line with 2Q10 due to the

maintenance of contracts already effective in 2010, while energy sold on the free market (ACL)

amounted to 149.9 GWh, 45.3% up year-on-year due to the higher volume of purchased energy, in

turn fueled by the CCEEs revision of the commercialization rules in 2010, which led to an increase in

assured energy in September 2010.

First-half sales totaled 2,817.2 GWh, 9.7% down on 1H10, due to the higher volume of secondary

energy volume generated in 1H10, which led to a reduction in spot market salesbetween the periods.

Commercialization and Services

In 2Q11, direct energy sales by Light Esco and LightCom from conventional and subsidized sources,

totaled 457.1 GWh, 108.2% up on the 219.5 GWh recorded in 2Q10, due to important long-term

energy sale transactions and the intensification of short-term transactions.

In 1H11, energy sales volume grew by 79.3% year-on-year to 764.0 GWh.

LIGHT ENERGIA (GWh) 2Q11 2Q10 % 1H11 1H10 %

Regulated Contract ing Environment Sales 1,014.0 1,007.2 0.7% 2,069.6 2,051.7 0.9%

Free Contracting Environment Sales 149.9 103.1 45.3% 280.9 188.6 48.9%

Spot Sales (CCEE) 169.9 325.9 -47.9% 466.7 881.1 -47.0%Total 1,333.7 1,436.2 -7.1% 2,817.2 3,121.4 -9.7%

Volume (GWh) 2Q11 2Q10 Var.% 1H11 1H10 Var.%

764.0 426.2 79.3%Trading 457.1 219.5 108.2%


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Financial Performance

Net Revenue

Consolidated

Consolidated net operating revenue totaled R$1,637.9 million in 2Q11, 8.3% up on 2Q10. Excluding

revenue from construction, which has a neutral effect on net income, consolidated net revenue

increased by 4.1%. Net revenue from all the Companys business segments increased, led by

commercialization and services, which recorded a 55.7% year-on-year upturn.

In the first half, excluding revenue from construction, consolidated net revenue amounted to R$3,146.3

million, 4.9% higher than in 1H10.

Distribution

Net revenue from distribution came to R$1,524.3 million in

1Q11, 7.2% more than the same quarter last year. Excluding

revenue from co nstruction, net revenue from distribution

totaled R$1,345.1 million, 2.6% up on 2Q10, primarily due to

the 3.1% upturn in total market consumption. In the captive

market, residential and commercial consumption grew by 2.6%

and 5.0%, respectively. These segments jointly account for

77.4% of captive market revenue.

Electric Energy Consumption (GWh) - Captive2Q11

Residential

41%

Industrial

9%

Commercial

32%

Others

18%

1,5542,043

426

857

Net Revenue (R$ MN) 2Q11 2Q10 Var. % 1H11 1H10 Var. %

Distribution

Billed consumption 1,253.1 1,211.5 3.4% 2,683.6 2,588.4 3.7%

Non billed energy (44.6) (47.8) -6.6% (31.1) (51.3) -39.3%

Network use (TUSD) 120.4 125.7 -4.2% 255.7 251.1 1.9%

Short-Term (Spot) 9.7 10.1 -3.9% 12.7 10.1 25.6%

Others 6.4 10.9 -41.1% 10.3 21.5 -52.3%

Subtotal (a) 1,345.1 1,310.5 2.6% 2,931.2 2,819.8 3.9%

Construction Revenue 179.2 111.2 61.2% 326.3 222.4 46.7%

Subtotal (a') 1,524.3 1,421.7 7.2% 3,257.5 3,042.3 7.1%

Generation

Generation Sale(ACR+ACL) 74.9 67.7 10.6% 153.6 135.1 13.7%

Short-Term1 0.6 3.9 -83.5% 5.0 9.8 -49.4%

Others 1.9 1.4 36.2% 3.6 2.7 32.4%

Subtotal (b) 77.5 73.1 6.0% 162.2 147.6 9.9%

CommercializationEnergy Sales 44.5 22.8 94.7% 80.9 44.7 81.0%

Others 12.2 13.6 -9.9% 16.9 24.5 -31.2%

Subtotal (c) 56.7 36.4 55.7% 97.8 69.2 41.3%

Others and Eliminations (d) (20.5) (18.4) - (44.9) (37.6) -

Total without Construction Revenue (a+b+c+d) 1,458.7 1,401.5 4.1% 3,146.3 2,999.1 4.9%

Total (a'+b+c+d) 1,637.9 1,512.7 8.3% 3,472.6 3,221.6 7.8%

Balance of the settlement on the CCEE

The subsidiary Light SESA counts revenues a nd costs , with zero margin, related to services of cons truction or improvement in

infrastructure used in s ervices of electricity distribution.


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Excluding revenue from construction, net revenue from distribution came to

R$2,931.2 million in 1H11, 3.9% up on the same period last year, chiefly

due to higher consumption in the captive and free markets.

Generation

Net revenue from generation totaled R$77.5 million in 2Q11, 6.0% higher

than in 2Q10, chiefly due to the 10.6% increase in free and captive market

revenue, in turn reflecting the adjustments to captive market energy sale contracts.

In 1H11, net revenue totaled R$162.2 million, 9.9% up on 1H10, primarily due to the adjustments to

captive market energy sale contracts and the greater number of contracts negotiated on the free

market.


Net revenue from commercialization and services totaled R$56.7 million in 2Q11, 55.7% up on 2Q10,

primarily due to the 94.7% upturn in revenue from electricity trading.

Net revenue amounted to R$97.8 million in 1H11, 41.3% up on 1H10.

Costs and Expenses

Consolidated

Consolidated Operating Costs and Expenses

In 2Q11, operating costs and expenses grew by 23.1%, mainly driven by costs and expenses incurred

by the distribution business, which increased by 20.9% year-on-year. Excluding construction costs,

consolidated operating costs and expenses grew by 19.3%.

Distribution

Operating Costs and Expenses

(R$ MN)2Q11 2Q10 (%) 1H11 1H10 (%)

Distribution (1,421.3) (1,175.2) 20.9% (2,858.3) (2,435.1) 17.4%

Generation (35.3) (35.0) 0.8% (71.8) (78.2) -8.3%Commercialization (40.0) (21.1) 89.9% (76.0) (41.8) 81.9%

Others and Eliminations 7.0 21.7 - 26.1 28.1 -Consolidated (1,489.5) (1,209.6) 23.1% (2,980.1) (2,527.1) 17.9%

Net Revenue by Class- Captive

R$ MN - 2Q11

Residential46%

Industrial

8%

Commerc ial

32%

Others

14%

571

177

394

105


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In 2Q11, distribution costs and expenses moved up by 20.9% over 2Q10, as shown in the table below.

Excluding construction costs, total costs and expenses grew by 16.7%, mainly due to the 10.1%

increase in non-manageable costs and expenses and the 37.3% upturn in manageable costs and

expenses.

Non-Manageable Costs and Expenses

In 2Q11, non-manageable costs and expenses totaled

R$885.3 million, 10.1% up on the same period in

2010.

Energy purchase costs totaled R$714.7 million, 13.6%

up on 2Q10, primarily reflecting adjustments to

existing contracts, the entry of new products

contracted at the A-5 auction in 2006, with delivery

beginning in 2011, and the increase in the volume of

energy purchased to meet market demand. In

addition, energy purchase costs related to previous

periods, totaling R$19.1 million, were booked in 2Q11

due to the recalculation by ANEEL/CCEE of overdue

payments related to energy availability contracts with

thermoelectric plants. Excluding these non-recurring

costs, energy costs increased by 10.6%.

Costs for charges and transmission fell by 3.2%,

primarily due to the stability of the Interconnected

System, there being no need for any dispatch of

thermal power.

The average purchased energy cost, excluding spot market purchases, amounted to R$103.9/MWh in2Q11, 5.3% up on the R$98.1/MWh recorded in 2Q10.

Purchased Energy - GWh

2nd Quarter

53.0% 55.9%

24.3%22.7%

20.7%19.3%

1.7%

1.8% 0.3%0.1%

2Q10 2Q11

AUC TIONS NORTE FLU ITAIPU PROINFA SPOT

6,505 6,964

Costs and Expenses (R$ MN) 2Q11 2Q10 (%) 1H11 1H10 Var. %

Non-Manageable Costs and Expenses (885.3) (804.2) 10.1% (1,870.6) (1,654.5) 13.1%

Energy Purchase costs (714.7) (628.9) 13.6% (1,514.0) (1,301.2) 16.4%Costs with Charges and Transmission (166.3) (171.8) -3.2% (347.9) (346.5) 0.4%

Others (Mandatory Costs) (4.4) (3.5) 23.3% (8.7) (6.9) 26.6%

Manageable Costs and Expenses (356.8) (259.9) 37.3% (661.5) (558.2) 18.5%

PMSO (179.4) (151.4) 18.5% (348.0) (286.2) 21.6%

Personnel (66.0) (57.5) 14.9% (120.4) (104.1) 15.6%

Material (5.9) (5.7) 3.0% (11.6) (10.7) 8.2%

Outsourced Services (90.8) (74.5) 22.0% (186.5) (147.2) 26.7%

Others (16.7) (13.8) 21.3% (29.5) (24.2) 21.7%

Provisions (99.3) (36.0) 175.7% (159.6) (129.3) 23.4%

Depreciation and Amortization (78.0) (72.4) 7.7% (153.9) (142.7) 7.9%

Construction Revenue (179.2) (111.2) 61.2% (326.3) (222.4) 46.7%

Total Costs without Construction Revenue (1,242.1) (1,064.0) 16.7% (2,532.1) (2,212.7) 14.4%

Total Costs (1,421.3) (1,175.2) 20.9% (2,858.3) (2,435.1) 17.4%

46.1% 51.5%

31.6%30.3%21.9%

17.1%0.4%1.1%

2Q10 2Q11

Purchased Energy - R$ MN

2nd Quarter

AUCTIONS NORTE FLU ITAIPU SPOT

628.9714.7


16/37

16

In 1H11, non-manageable costs and expenses totaled R$1,870.6 million, 13.1% up year-on-year.

Purchased energy costs increased by 16.4%, primarily due to higher purchased energy volume this

year and the 6.3% upturn in the average purchased energy cost. Costs for charges remained flat.

Manageable Costs and Expenses

In 2Q11, manageable operating costs and expenses (personnel, materials, outsourced services,

provisions, depreciation and others) totaled R$356.8 million, 37.3% up on 2Q10.

Costs and expenses from staff, materials, services and others (PMSO) came to R$179.4 million in

2Q11, 18.5% more than in 2Q10, chiefly due to higher expenses from personnel and outsourced

services, which increased by 14.9% and 22.0%, respectively.

The upturn in the personnel line was mainly due to the 6.75% pay rise following the collective

bargaining agreement in the second quarter, in addition to the R$4.8 million reduction in labor

capitalization.

The increase in expenses with outsourced services was mainly a reflection of higher expenses with the

delinquency-prevention program, totaling R$4.8 million, tree pruning, totaling R$3.0 million, and call

center, live-line and maintenance services, totaling R$4.5 million.

The difference in the provisions line totaled R$63.3 million, primarily due to the non-recurring reversal

of provisions totaling R$53.4 million in 2Q10 due to the dismissal of Aneels administrative processconcerning the classification of consumers under the Social (low-income) Tariff between 2002 and

2006. Excluding this non-recurring event, provisions increased by 11.6%. In 2Q11, Provisions for Past

Due Accounts (PPD) totaled R$79.5 million, representing 4.0% of gross billed energy, versus R$75.3

million, or 3.8% of gross billed energy, in the same period in 2010.

Manageable operating costs and expenses in the first six months totaled R$661.5 million, 18.5% up

year-on-year.

Generation

In 2Q11, Light Energias costs and expenses amounted to R$35.3 million, an increase of 0.8% in

relation to 2Q10, mainly due to higher personnel costs as a result of the 6.75% pay rise following the

collective bargaining agreement in the second quarter.

Costs and expenses in 2Q11 were broken down as follows: CUSD/CUST distribution/transmission

system usage (11.9%), personnel (17.3%), material and outsourced services (11.3%), and

depreciation and others (59.5%). PMSO per MWh in the quarter came to R$14.39/MWh, compared to

R$13.05/MWh in 2Q10.


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17

In 1H11, Light Energias costs and expenses came to R$71.8 million, 8.3% less than in 1H10, chiefly

due to the 35.1% reduction in provisions, related to the non-recurring impact of R$8.2 million in the

first quart er of 2010 from the judicial settlement with the Barra do Pira municipal government related

to the dredging of the Pira river.


In 2Q11, commercialization costs and expenses totaled R$40.0 million, 89.9% higher than in 2Q10,

mainly driven by the cost of purchased energy, which grew by 101.6% between the quarters, due to

the strong growth in the volume of resold energy.

In 1H11, costs and expenses amounted to R$76.0 million, 81.9% up on 1H10, primarily due to higher

energy purchase costs, reflecting the expansion of trading and service provision.

Operating Costs and Expenses - R$ MN 2Q11 2Q10 Var. % 1H11 1H10 Var. %

Personnel (6.1) (5.0) 22.9% (11.9) (9.8) 21.2%

Material and Outsourced Services (4.0) (3.7) 7.7% (7.5) (7.5) 0.9%

Purchased Energy (CUSD) (4.2) (3.7) 13.6% (8.4) (7.2) 17.8%

Depreciation (14.2) (15.5) -8.3% (28.9) (30.7) -5.8%

Others (includes provisions) (6.8) (7.2) -5.3% (15.0) (23.1) -35.1%

Total (35.3) (35.0) 0.8% (71.8) (78.2) -8.3%

Operating Costs and Expenses - R$ MN 2Q11 2Q10 Var. % 1H11 1H10 Var. %

Personnel (1.3) (1.0) 35.9% (2.3) (1.7) 34.4%

Material and Outsourced Services (0.2) (0.6) -72.4% (0.5) (0.9) -42.9%

Purchased Energy (37.9) (18.8) 101.6% (72.2) (38.3) 88.4%

Depreciation (0.2) (0.2) 0.0% (0.3) (0.3) 0.0%

Others (includes provisions) (0.4) (0.5) -14.4% (0.8) (0.6) 30.2%

Total (40.0) (21.1) 89.9% (76.0) (41.8) 81.9%


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18

EBITDA

Consolidated

Consolidated EBITDA totaled R$240.8 million in 2Q11, 36.7% down on 2Q10, primarily reflecting the

increase in: (i) energy purchase costs, as a result of adjustments to existing contracts, (ii) PMSO

expenses, and (iii) provisions, partially offset by the 4.1% increase in net revenue (excluding revenue

from construction), mainly due to the growth of the distributors market .

The EBITDA margin4 stood at 16.5% in 2Q11. The distribution segment accounted for 74.1% of the

total, followed by the generation and commercialization segments, with 23.3% and 2.6%, respectively.

Distribution

The distribution companys EBITDA came to R$179.6 million in 2Q11,

43.7% down year-on-year, primarily due to: (i) the 13.6% upturn in

energy purchase costs, as a result of adjustments to existing contracts, (ii)

4Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, dueto the booking of revenues and costs with zero margin.

EBITDA per segment*

2Q11

Distribution

74.1%

Generation

23.3%Commercialization

2.6%

*Does not consider eliminations

380

241

91

(96)

(72)

(62)

EBITDA - 2Q10 Net Revenue Purchased Energy Manageable Costs(PMSO)

Provisions EBITDA - 2Q11

EBITDA - 2Q11/2Q10 - R$ Million

Consolidated EBITDA- R$ MN 2Q11 2Q10 Var.% 1H11 1H10 Var.%

Distribution 179.6 318.9 -43.7% 551.8 749.8 -26.4%

Generation 56.4 53.6 5.3% 120.4 100.2 20.2%

Commercialization 6.3 9.8 -35.8% 8.6 11.8 -27.8%

Others and eliminations (1.5) (2.2) -32.8% (5.0) (4.2) 18.6%

Total 240.8 380.4 -36.7% 675.7 857.6 -21.2%

Margem EBITDA (%) 16.5% 27.1% - 21.5% 28.6% -


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19

the 22.0% increase in outsourced services, and (iii) higher provisions, due to the non-recurring impact

of R$53.4 million in 2Q10, which had a positive impact on provisions in that period. The EBITDA

margin5 in 2Q11 stood at 13.4%, 11.0 p.p. down on 2Q10.

Generation

Light Energias EBITDA increased by 5.3% over 2Q10 to R$56.4 million, mainly due to the 10.6%

upturn in revenue from energy sales, impacted by contractual adjustments. The EBITDA margin came

to 72.8%.


Commercialization and services EBITDA amounted to R$6.3 million in 2Q11, 35.8% down on the 2Q10

figure, mainly due to the higher volume of energy purchased by the commercialization company. The

EBITDA margin stood at 11.1%.

5Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, dueto the booking of revenues and costs with zero margin.


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20

Consolidated Financial Result

The 2Q11 financial result was a negative R$88.9 million, 176.1% higher than the negative result

recorded in 2Q10.

Financial revenues totaled R$58.2 million, 12.6% up on the same period in 2010, mainly impacted by

the 61.7% increase in fines and delinquent interest on overdue electricity bills.

Financial expenses came to R$147.1 million, 75.3% more than in 2Q10, largely due to: (i) the 33.2%

upturn in the interest on loans and financing line due to the booking of charges related to Light

Energias 1st debenture issue and Light SESAs 7th debenture issue in April and May, respectively; (ii)

the increased monetary restatement of the Braslight deficit in the amount of R$7.2 million, stemming

from the difference in the indexing agents between the periods: 2.04% in 2Q11, versus 1.53% in

2Q10, (iii) the upturn in the other financial expenses line, chiefly due to the restatement of tax debts,

which increased by R$20.7 million over 2010, mainly resulting from the cancellation of the adhesion of

the LIR and LOI process to the REFIS tax repayment program in 2010, which had a positive impact on

the result in that period, and (iv) the R$11.4 million increase related to a debt included in the REFIS

program, for which no provisions had been constituted.

The 1H11 financial result was a negative R$185.5 million, 42.6% up on the negative result in 1H10,

due to the factors mentioned above, plus fines for the violation of continuity indicators totaling R$9.9

million.

Financial Result - R$ MN 2Q11 2Q10 (%) 1H11 1H10 (%)

Financial Revenues 58.2 51.7 12.6% 94.7 96.2 -1.5%

Income from financial investments 16.1 12.3 30.5% 27.0 28.7 -5.9%

Monetary and Exchange Variation 0.4 15.3 -97.2% 1.4 18.1 -92.1%

Swap Operations 0.3 (0.0) - 0.4 0.0 -

Moratory Increase / Debts Penalty 35.7 22.1 61.7% 55.4 42.0 32.1%

Other Financial Revenues 5.7 2.1 172.5% 10.5 7.4 41.9%

Financial Expenses (147.1) (83.9) 75.3% (280.2) (226.2) 23.9%

Interest on loans and financ ing (90.1) (67.6) 33.2% (175.3) (143.9) 21.8%

Monetary and Exchange Variation 2.9 (1.1) - 3.4 (3.2) -

Braslight (private pension fund) (36.1) (28.9) 25.0% (74.2) (67.6) 9.7%

Swap Operations (2.0) (0.2) 977.8% (3.6) 0.1 -

DIC/FIC Compensation (7.0) (4.2) 69.4% (16.8) (6.9) 143.0%

Other Financial Expenses (14.8) 18.0 - (13.8) (4.6) 199.3%

Total(88.9) (32.2)

176.1% (185.5) (130.0)42.6%


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Indebtedness

The Company closed 2Q11 with gross debt of R$2,997.4

million, 19.1% more than at the end of 1Q11, primarily

due to the increase in long-term Real-denominated debt,

in turn the result ofLight SESAs 7th debenture issue and

Light Energias 1st debenture issue totaling R$650 million

and R$170 million, respectively.

Net debt came to R$2,549.3 million, 19.4% up on the

figure recorded in March 2011, mainly due to the

payment of dividends totaling R$351 million in May

2011, and the higher volume of investments. At the end

of June 2011, the net debt/EBITDA ratio stood at 2.0x.

The Companys debt has an average term to maturity of

3.7 years. The average cost of Real-denominated debt

was 12.4% p.a., 0.6 p.p. up the end-of-March figure,

while the average cost of foreign-currency debt (US$ +

4.4% p.a.) dipped by 100 bps in the same period. At

the end of June, only 2.2% of total debt was

denominated in foreign currency and, considering the FX

hedge horizon, only 1.3% of this total was exposed to foreign currency risk, 0.4 p.p. lower than at the

close of March. Lights hedge policy consists of protecting cash flow falling due within the next 24

months (principal and interest) through the use of non-cash swap instruments with premier financial

institutions.

Net Debt (ex-Braslight)

(R$ million)

1,805.22,134.9

2,549.3

Jun-10 Mar-11 Jun-11

Indebtedness

(Brazilian Currency x Foreign)

96.2% 97.0% 97.8%

3.8% 3.0% 2.2%

Jun-10 Mar-11 Jun-11

Brazilian Currency Foreign Currency

R$ MN Short Term % Long Term % Total %Brazilian Currency 371.5 12.4% 2,560.5 85.4% 2,932.1 97.8%

Debenture 4th Issue 0.0 0.0% 0.1 0.0% 0.1 0.0%



Debenture 1st Issue Light Energia 4.8 0.2% 171.0 5.7% 175.8 5.9%

BNDES FINEM (CAPEX) 159.2 5.3% 571.3 19.1% 730.5 24.4%

CCB Bradesco 41.7 1.4% 450.0 15.0% 491.7 16.4%

Working Capital - Santander 7.3 0.2% 80.0 2.7% 87.3 2.9%

Financial operations "Swap" 4.3 0.1% 1.0 0.0% 5.3 0.2%

Others 1.1 0.0% 1.8 0.1% 2.9 0.1%

Foreing Currency 12.3 0.4% 52.9 1.8% 65.3 2.2%

National Treasury 12.3 0.4% 52.9 1.8% 65.3 2.2%

Gross Debt 383.9 12.8% 2,613.5 87.2% 2,997.4 100.0%

Cash 448.0Net Debt (a) 2,549.3

Braslight (b) 103.0 935.6 1,038.7Adjusted Net Debt (a+b-c) 3,588.0


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Net Income

Light posted net income ofR$45.3 million in 2Q11, 67.1% down on2Q10, reflecting the reduction in

EBITDA due to (i) the increase in purchased energy costs; (ii)the upturn in PMSO expenses, and (iii)

higher provisions and the R$56.7 million increase in the 2Q10 financial result.

In 1H11, net income amounted to R$211.7 million, 41.4% down on 1H11.

Capital Expenditures

The Company invested R$337.1 million in 1H11, R$98.7 million

of which in the development of distribution and transmission

networks (new connections, capacity increases and repairs);

R$55.8 million in network quality improvements and

preventive maintenance; and R$72.2 million in network

protection, electronic meters and fraud regularization.

Generation investments totaled R$32.4 million, of which R$5.2

million went to the maintenance of existing generating

facilities.

Generation Capacity Expansion Projects

2Q11 was marked by the following events related to projects for expanding Lights generating capacity:

Construction of the Paracambi SHP, which began in November 2009, is well under way. The currentstage includes: final preparations for the beginning of river diversion, lowering of the 1 and 2 suction

362

212

(182)(55)

107

(20)

1H10 EBITDA Financial Result Taxes Others 1H11

Net Income - HalfR$ Million

193.5

292.0

11.7

12.5

43.1

32.4

0.7

0.2

249.0

337.1

1H10 1H11

CAPEX (R$ MN)

Distribution Administration Generation Commercial

35.4%


23/37

23

cofferdams, launching and compacting of the dam embankment, cleaning of the tailrace channel,

conclusion of the concreting of the rotor housing columns, and the mechanical assembly of the suction

pipe. The signing of a BNDES financing contract is expected in the second half of 2011.

The Construction of the New Feeder 1, part of the Lajes SHP water channeling system, is under way

and scheduled for completion in the fourth quarter of 2011. The projects completion was rescheduled

due to construction delays chiefly as a result of the need to recalculate the anchor blocks for a flow of

thirteen cubic meters per second from the previous six cubic meters per second.

In May 2011, IBAMA accepted the environmental impact study and report (EIA/RIMA) for the

Itaocara I and II hydroelectric plants. The public hearings were held from July 19 to 22, being an

essential condition for the environmental licensing process and the subsequent issue of preliminary and

installation licenses.

The public hearings on the two wind energy projects acquired in 2010, located in Aracati (CE), were

held on March 1 in Fontainha (CE), and the Company is currently waiting for the installation license to

be issued by SEMACE. With a joint installed capacity of 30 MW, both projects will participate in two

energy auctions to be held in the second half of 2011 (A-3 and reserve energy auctions).

The Company is considering participating in several other generation undertakings, aiming to

increase its installed generating capacity through greenfield or brownfield projects. In line with this

strategy, on July 8, Light announced investments of R$360 million in Renova Energia S.A. through the

acquisition of a 26.1% interest in its capital stock. Renova Energia S.A. has an installed capacity of 42MW in operation, and 456 MW under development, contracted in the 2009 and 2010 reserve energy

auctions (LERs), in addition to 400 MW envisaged in an energy purchase agreement executed between

Renova and Light. After consolidation of the 26.1% interest in Renova, Lights installed capacity will

increase by 234 MW.


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24

Cash Flow

The Company closed 1H11 with a cash position of R$436.9 million.

In 1H11, cash flow was negative by R$77.2 million, versus the negative R$36.4 million reported in

2Q10, due to: (i) lower operating cash flow, mainly impacted by the change in working capital

accounts, and other taxes. On working capital account, the worsening of the collection rate in the

period, especially at the beginning of the year, the largest payment to suppliers of materials and

services and buying power were the main reasons. The change in the tax bill was due primarily to the

achievement of greater tax credit in the same period of 2010. In the account of others, the main effect

was the largest disbursement of income tax and social contribution in 2011 due to lower tax

compensation in the amount of R $ 18 million, compared to 2010;, and (ii) the R$95.1 million increase

in investing activities, partially offset by (iii) the R$525.4 million upturn in financing activities.

R$ MN 6/30/2011 6/30/2010

Cash in the Beginning of the Period (1) 514.1 760.3

Net Income 211.7 362.4

Social Contributions & Income Tax (95.0) (202.0)

Net Income Social Contributions & Income Tax 306.7 564.4

Provision for Delinquency 143.9 138.8

Depreciation and Amortization 183.2 173.7

Loss (gain) on intangible sales / Residual value of

disposals fixed asset 0.4 (10.6)

Losses (gains) on financing exchange activities 0.3 (1.3)

Net Interests and Monetary Variations 153.6 127.9

Braslight 74.2 60.6

Atualization / provisions reversal 11.8 0.5

Others 13.2 14.8

Earning Before Taxes - Cash Basis 887.2 1,068.8Working Capital (201.1) (56.1)

Contingencies (49.4) (59.4)

Taxes (143.5) (46.4)

Interests (112.6) (97.2)

Others (213.7) (171.6)

Cash from Operating Activities (2) 167.0 638.2

Finance Obtained 875.2 881.9

Dividends (351.0) (432.3)

loans and financing payments (391.8) (842.4)

Financing Activities (3) 132.5 (392.9)

Disposal of Assets 4.7 13.6

Shares buyback - 6.4

Concession Investments (381.4) (301.6)

Investment Activities (4) (376.7) (281.6)

Cash in the End of the Period (1+2+3+4) 436.9 723.9

Cash Generation (2+3+4) (77.2) (36.4)


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25

Corporate Governance

On June 30, 2011, the capital stock of Light S.A. comprised 203,934,060 common shares, 97,629,463

of which outstanding.

The following chart shows Lights shareholding structure on the same date.

On April 28, 2011, the Companys Annual and Extraordinary Shareholders Meeting approved: (i) the

payment of dividends by Light S.A., in the amount of R$351 million, related to fiscal year 2010; (ii) the

amendment of the Companys Bylaws to create a legal department and reorganize its duties and

responsibilities; (iii) the replacement of three members of the Board of Directors, all of whom with a

mandate until the Annual Shareholders Meeting to approve the accounts for the fiscal year ending

December 31, 2011.

On May 5, Light S.E.S.A. concluded its Public Distribution of Seventh Issue Non-Convertible

Debentures, comprising sixty-five thousand (65,000) simple, non-convertible, unsecured debentures,

issued on May 2, 2011, in a single series, with a nominal unit value of ten thousand reais

(R$10,000.00), totaling six hundred and fifty million reais (R$650,000,000.00) (Offering), as

approved by the Companys Board of Directors meeting on March 25, 2011. The proceeds from the

Issue will be used to: (i) fully settle the debt resulting from the Companys sixth debenture issue; and

(ii) finance the Companys investment plan. The debentures will mature in five (5) years, as of the

issue date, i.e., on May 2, 2016.

15.02%26.06% 13.03% 13.03%

CEMIGCompanhia

Energtica de MG

RMERio Minas Energia BNDESPAR EDFIMINORITY

LIGHT S.A(Holding)

32.85%

LEPSALUCE

EmpreendimentosParticipaes S.A.

Free Float

47.87%

Controlling Shareholders52.13%

LIGHT S.A(Holding)

LIGHTServios deEletricidade

S.A

LIGHTEnergia S.A.

LIGHTESCO

Prestao deServios S.A.

LIGHTGERS.A.

ITAOCARAEnergia Ltda

LIGHTCOMComercializ.

de Energia S.A.

LIGHTSOLUES

em EletricidadeLtda

AXXIOMSolues

Tecnolgicas

100% 100% 100% 51% 100% 100% 100% 51%


26/37

26

Light Energia S.A.s 1st Debenture Issue, effected through a public distribution with restricted

placement efforts, was concluded on May 12, 2011. Seventeen thousand (17,000) simple, non-

convertible, unsecured debentures were issued on April 10, 2011, in a single series, with a nominal unit

value of ten thousand reais (R$10,000.00), totaling one hundred and seventy million reais(R$170,000,000.00). The debentures will mature in five (5) years, as of the issue date, i.e. on April 10,

2016.

On May 12, 2011, Parati, a company owned by CEMIG and FIP Redentor, acquired, from Fundo de

Investimento em Participaes PCP (FIP PCP), 58,671,565 common shares in Redentor, an indirect

shareholder of the Company, representing 54.08% ofRedentors capital, through its subsidiary RME,

which holds 13.03% of the Companys capital. As a result, Paratis indirect interest in Lights voting

capital reached 7.05%, while FIP Redentors indirect stake reached 5.29%. Said acquisition resulted in

the transfer of control of Redentor. Consequently, Parati will hold a public tender offer for theremaining shares of Redentor, for the same price per share paid to FIP PCP.


27/37

27

Capital Market

Lights shares have been listed on Bovespas Novo Mercado trading segment since July 2005, therefore

adhering to the best corporate governance practices and the principles of transparency and equity, in

addition to granting special rights to minority shareholders. Light S.A. shares are included in the

following indices: Ibovespa (BM&FBOVESPA Index), IGC (Corporate Governance Index), IEE (Electric

Power Index), IBrX (Brazil Index) and ISE (Corporate Sustainability Index).

At the end of June 2011, Light S.A.s shares (LIGT3) were quoted at R$29.36 (adjusted for shareholder

payments), having appreciated by 10.9% in 2Q11, outperforming the -9.0% recorded by the Ibovespa

and the 0.6% posted by the IEE in the same period. In 1H11, the Companys shares appreciated by

22.93%, while the Ibovespa fell by 9.69%. The Companys market cap (number of shares X share

price) closed the quarter at R$5.988 million.

The chart below gives a breakdown of the Companys free float .

Free Float Structure Foreign

INDIVIDUAL14.60%

NATIONAL

LEGALENTITIES22.80%

FOREIGN62.60%

BM&F BOVESPA (spot market) - LIGT3

Daily Average 2Q11 1Q11 2Q10

Number of shares traded (Thousand) 653.7 954.5 689.1

Number of Transactions 1,950 2,478 1,521

Traded Volume (R$ Million) 18.5 25.8 15.0

Quotation per shares: (Closing)* R$ 29.36 R$ 26.49 R$ 18.27

Share Valuing (Quarter) 10.9% 10.9% -12.7%

IEE Valuing (Quarter) 0.6% 9.7% -0.6%

Ibovespa Valuing (Quarter) -9.0% -1.0% 0.5%

*Ajusted by earnings

EUROPE40.77%

USA

37.78%

ASIA13.11%

OCEANIA5.02%

NORTHAMERICA

2.85%

SOUTHAMERICA

0.65%

CENTRALAMERICA

0.03%


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The chart below shows the performance of Lights stock between January 1, 2010 and June 30, 2011.

Dividends

Lights dividend payment policy establishes the payment of minimum dividends equivalent to 50% of

adjusted net income, calculated in compliance with Article 189 of Brazilian Corporation Law and

pursuant to Brazilian accounting practices and the regulations of the Brazilian Securities and Exchange

Commission (CVM).

On May 18, 2011, the Company paid dividends to shareholders totaling three hundred and fifty million,

nine hundred and seventy-nine thousand, three hundred and six reais and thirty-six centavos

(R$350,979,306.36), corresponding to R$1.721043 per share, based on net income for the fiscal year

ended December 31, 2010. Shares were traded ex-dividends as of April 29, 2011.

Light x Ibovespa x IEE

Base jan/10 = 100 until 06/30/2011

40

60

80

100

120

140

160

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

41% Light

-9% Ibovespa

24% IEE

R$/share

01/04/10 20.53

06/30/11 29.36

2010

IEE 12%

IBOV 1%

LIGT3 15%

2011IEE 10%

IBOV -10%

LIGT3 23%


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29

Dividends paid, dividend yield and payout

100% 100%

76.3%64.2%

2007 2008 2009 2010

Payout

50%

Minimum Dividends Policy

4.2%

8.2%9.9%

1.7%

8.1% 8.1%6.1%

203

351

408

187

432

363 351

1H08 2H08 1H09 2H09 1H10 2H10 1H11

Dividend Yeld*Dividends

*Based on the closing price of the daybefore of the announcement.


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Recent Events

On July 7, 2011, Parati acquired, from Enlighted Partners Venture Capital LLC(ENLIGHTED), 100% of Luce LLC (Luce), the owner of seventy-five percent (75%) of

Fundo de Investimento em Participaes (FIP LUCE), which in turn is the indirect holder,

through Luce Empreendimentos e Participaes S.A. (LEPSA), of twenty-six million, five

hundred seventy-six thousand, one hundred and forty-nine (26,576,149) common shares

issued by the Company, representing approximately 13.03% of its total and voting capital.

On July 8, 2011 the Company and Renova Energia S.A. (Renova) executed an InvestmentAgreement whereby the Company will enter Renovas capital stock by subscribing to new

common shares to be issued by the latter, corresponding to a R$360 million increase in

Renovas capital. Following this Investment, the Company will hold 35.1% of Renovas

common shares and 26.2% of its total capital. All shareholders with an individual interest ofmore than five percent (5%) of the Companys capital stock will freely assign their

preemptive rights in Renovas capital increase to the Company. Following the Meeting of

Renovas Board of Directors that resolves on the capital increase, Renovas other

shareholders will have 30 days to exercise their preemptive rights in the capital increase.

On July 15, 2011, FUNDAO DE SEGURIDADE SOCIAL BRASLIGHT (Braslight), whichholds a 25% interest in FIP Luce, announced that it will exercise a put option on said interest,

as provided for in the FIP Luce Shareholders Agreement. With the acquisition of Luce LLC

and Braslights interests, Paratis indirect interest in the Companys total and voting capitalincreased from 7.05% to 20.08%.

On August 5, 2011, the Board of Directors of Light S.A. approved the acquisition, by theamount of R$ 120 thousand, corresponding to 20% of the common shares issued by CR

Zongshen E-Power vehicle manufacture S.A., a company located at the City of Sapucaia, Rio

de Janeiro, whose principal object is to manufacture electric two-wheeled vehicles of the

brand "Kasinski".


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Disclosure Program

Disclaimer

The information on the Companys operations and its Managements expectations regarding its future performance has not been

revised by independent auditors.

Forward-looking statements are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of

our Management and on information currently available to the Company. Statements about future events include information

about our intentions, beliefs or current expectations, as well as those of the Company's Board of Directors and Officers.

Reservations related to statements and information about the future also include information about operating results, likely or

presumed, as well as statements that are preceded by, followed by, or including words such as "believes," "might," "will,"

"continues," "expects," "estimates," "intends," "anticipates," or similar expressions. Statements and information about the future

are not a guarantee of performance. They involve risks, uncertainties and assumptions because they refer to future events, thus

depending on circumstances that may or may not occur. Future results and creation of value to shareholders might significantly

differ from those expressed or suggested by forward-looking statements. Many of the factors that will determine these results

and values are beyond LIGHT S.A.'s control or forecast capacity.

Teleconference

Brazil: (55) 11 - 4688-6361

Other countries: +1 (786) 924 6977

Access code: Light

Conference Call - Dial number:

Schedule

08/08/2011, Monday, at 4:00 p.m. (Brazilian Time) and at 3:00 p.m. (NY

Time), with simultaneous translation to English

Webcast: link on site www.light.com.br (portuguese and english)

Access conditions:


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APPENDIX I

Statement of Income by Company - R$ million

LIGHT SESA 2Q11 2Q10 % 1H11 1H10 %

Net operating revenue 1.524,3 1.421,7 7,2% 3.257,5 3.042,3 7,1%

Operating expense (1.421,3) (1.175,2) 20,9% (2.858,3) (2.435,1) 17,4%

Operating result 103,0 246,5 -58,2% 399,1 607,1 -34,3%

EBITDA 179,6 318,9 -43,7% 551,8 749,8 -26,4%

Financial Result (81,9) (23,0) 255,8% (172,2) (110,8) 55,5%

Other Operating Incomes/Expenses (1,4) 10,8 - (1,3) 10,6 -

Result before taxes and interest 19,7 234,3 -91,6% 225,6 507,0 -55,5%

Net Income 18,9 114,1 -83,5% 158,0 325,9 -51,5%

EBITDA Margin* 13,4% 24,3% - 18,8% 26,6% -

*Does not co nsidered Constructio n Revenue

LIGHT ENERGIA 2Q11 2Q10 Var. % 1H11 1H10 Var. %

Net operating revenue 77,5 73,1 6,0% 162,2 147,6 9,9%Operating expense (35,3) (25,2) 40,0% (71,8) (77,5) -7,5%

Operating result 42,2 47,9 -11,9% 90,5 70,1 29,1%

EBITDA 56,4 53,6 5,3% 120,4 100,2 20,2%

Financial Result (7,2) (9,9) -27,5% (18,2) (20,7) -12,2%

Other Operating Incomes/Expenses - - - (0,9) - -

Result before taxes and interest 35,0 38,0 -7,8% 71,3 49,4 44,5%

Net Income 21,5 18,2 18,1% 49,0 31,7 54,6%

EBITDA Margin 72,8% 73,3% -0,7% 74,2% 67,8%

COMMERCIALIZATION 2Q11 2Q10 Var. % 1H11 1H10 Var. %

Net operating revenue 56,7 36,4 55,7% 97,8 69,2 41,3%

Operating expense (40,0) (21,1) 89,9% (76,0) (41,8) 81,9%

Operating result 16,7 15,3 8,9% 21,8 27,4 -20,6%

EBITDA 6,3 9,8 -35,8% 8,6 11,8 -27,8%Financial Result 0,4 0,2 143,2% 0,5 0,6 -24,2%

Other Operating Incomes/Expenses - - - - - -

Result before taxes and interest 17,1 15,5 10,4% 22,3 28,0 -20,7%

Net Income 4,4 6,6 -33,8% 5,8 8,1 -28,6%

EBITDA Margin 11,1% 6,5% 71,2% 8,7% 6,5% 35,0%


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APPENDIX II

Statement of Consolidated Income

Consolidated - R$ MN 2Q11 2Q10 % 1H11 1H10 %

NET OPERATING REVENUE 1,637.9 1,512.7 8.3% 3,472.6 3,221.6 7.8%

OPERATING EXPENSE (1,489.5) (1,220.4) 22.1% (2,980.1) (2,537.7) 17.4%

Personnel (75.4) (64.2) 17.5% (137.6) (117.6) 17.0%

Material (6.1) (8.1) -24.5% (12.4) (16.9) -26.7%

Outsourced Services (107.6) (82.5) 30.4% (212.1) (166.4) 27.4%

Purchased Energy (900.7) (804.8) 11.9% (1,894.3) (1,655.7) 14.4%

Depreciation (92.4) (88.1) 4.9% (183.2) (173.7) 5.5%

Provisions (99.3) (37.1) 167.4% (160.6) (138.7) 15.8%

Others (208.0) (135.6) 53.3% (379.9) (268.7) 41.4%

OPERATING RESULT() 148.4 292.3 -49.2% 492.5 683.9 -28.0%

EBITDA () 240.8 380.4 -36.7% 675.7 857.6 -21.2%

FINANCIAL RESULT (88.9) (32.2) 176.1% (185.5) (130.0) 42.6%

Financial Income 58.2 51.7 12.6% 94.7 96.2 -1.5%

Financial Expenses (147.1) (83.9) 75.3% (280.2) (226.2) 23.9%

Other Operating Incomes/Expenses (1.4) 10.8 - (0.4) 10.6

RESULT BEFORE TAXES AND INTEREST 58.1 271.0 -78.5% 306.7 564.4 -45.7%

SOCIAL CONTRIBUTIONS & INCOME TAX (23.7) (67.0) -64.6% (92.8) (116.5) -20.3%

DEFERRED INCOME TAX 10.9 (66.3) -116.4% (2.2) (85.6) -97.4%

NET INCOME 45.3 137.7 -67.1% 211.7 362.4 -41.6%

(*) The consolidated financial statements include the Light S.A. and its subsidiaries and affiliates. These financial statements were

eliminated from equity consolidated companies, the balances of receivables and payables, revenues and expenses between the

companies.

() Operation Result, Administration vision = Operating Result, accounting norms (Item 1.9.7 of Notice CVM 01/2007) + financials (net

financial expenses + equity pick-up).

() EBITDA = Operating Result, Administration vision + depreciation and amortization. Not reviewable by the external aud it.


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APPENDIX IV

Regulatory Assets and Liabilities: Formation and Amortization

APPENDIX V

Light by Numbers

OPERATING INDICATORS 2Q11 2Q10 Var. %

N of Consumers (thousand) 4,102 4,028 1.8%

N of Employees 4,009 3,730 7.5%

Average provision tariff - R$/MWh 402.2 408.2 -1.5%

Average provision tariff - R$/MWh (w/out taxes) 274.8 277.6 -1.0%

Average energy purchase cost - R$/MWh 104.0 98.7 5.3%

Installed generation capacity (MW) 855 855 -

Assured energy (Average MW)) 637 637 -

Pumping and internal losses (Average MW) 87 100 -

Available energy (Average MW) 550 537 2.4%

Net Generation (GWh) 1,240 1,301.5 -4.8%

Load Factor 64.6% 64.2% -

Includes purchase on spot

R$ Million Jun-11 Mar-11 Dec-11

TOTAL ASSET 134.3 149.8 161.6

TOTAL LIABILITIES (256.6) (277.7) (224.0)

TOTAL DIFFERENCE (122.2) (127.8) (62.4)

Net difference (period) 5.6 (65.4) -

Net difference (accumulated) (59.8) - -

R$ MN 2Q11 2Q10 1H11 1H10

Formation (7.0) 4.2 (62.2) (77.1)

Energy (24.0) (10.8) (62.3) (49.8)

Itaipu Transport - 0.1 0.3 0.1

Charges (0.3) 12.7 17.1 26.8

Involuntary Exposure 17.4 2.2 (17.3) (54.1)

Amortization (15.3) (75.2) (32.9) (158.3)

Energy (0.3) (59.9) (0.5) (126.1)

Itaipu Transport (0.2) (0.3) (0.4) (0.6)

Charges (14.8) (15.0) (32.0) (31.6)

Net Result (22.3) (70.9) (95.1) (235.4)


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APPENDIX VI

The adoption of the CPCs caused the following impacts on the 2Q10 and 1H10 results of the Company

and its subsidiaries:

2Q10 Before After

Ajustments Ajustments Ajustments

OPERATING REVENUE 2,233.3 114.0 2,347.3

DEDUCTIONS FROM THE OPERATING REVENUE (832.5) (2.0) (834.6)

NET OPERATING REVENUE 1,400.7 112.0 1,512.7

OPERATING EXPENSE (1,160.5) (59.9) (1,220.4)

OPERATING RESULT 240.3 52.1 292.4

Depreciation (78.8) (9.3) (88.1)

EBITDA 319.1 61.4 380.4

FINANCIAL RESULT - - -

Financial Income 51.7 - 51.7Financial Expenses (84.3) 0.4 (83.9)

Total (32.6) 0.4 (32.2)

Other Operating Incomes/Expenses 10.8 - 10.8

RESULT BEFORE TAXES AND INTEREST 218.6 52.5 271.1

SOCIAL CONTRIBUTIONS & INCOME TAX + DEFERRED (112.9) (20.4) (133.3)

PLR (7.3) 7.3 (0.0)

NET INCOME 98.3 39.4 137.7

2Q10 1H10 Company

Net Income before ajustments 98.3 218.8

Regulatory Assets and Liabilities 69.1 236.3

Net Revenue 112.0 226.6 Light SESA

Operating Expenses (43.3) 9.4 Light SESA

Financial Result 0.4 0.4 Light SESA

Net Fixed Assets (9.3) (18.6)

Depreciation (9.3) (18.6) Light Energia

Other Operating Expenses 0.0 0.0 Lightger e Itaocara

Construction Revenue 0.0 0.0

Net Revenue 111.2 222.4 Light SESA

Operating Expenses (111.2) (222.4) Light SESA

Social Contributions and Income Tax (20.4) (74.2) Light S.A.

Net Impact 39.4 143.6 Light S.A.

Net Income after ajustments 137.7 362.4


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1H10 Before After

Ajustments Ajustments Ajustments

OPERATING REVENUE 4,721.8 228.3 4,950.2

DEDUCTIONS FROM THE OPERATING REVENUE (1,726.8) (1.8) (1,728.6)

NET OPERATING REVENUE 2,995.0 226.6 3,221.6

OPERATING EXPENSE (2,518.8) (18.9) (2,537.7)

OPERATING RESULT 476.3 207.6 683.9

Depreciation (155.2) (18.6) (173.7)

EBITDA 631.4 226.2 857.6

FINANCIAL RESULT

Financial Income 96.2 - 96.2

Financial Expenses (226.6) 0.4 (226.2)

Total (130.4) 0.4 (130.0)

Other Operating Incomes/Expenses 10.6 - 10.6

RESULT BEFORE TAXES AND INTEREST 356.5 208.0 564.4

SOCIAL CONTRIBUTIONS & INCOME TAX + DEFERR (127.9) (74.2) (202.0)

PLR (9.8) 9.8 -

NET INCOME 218.8 143.6 362.4

Documents

Light SA Release 2Q11