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Conference Call. 1 st Quarter 2013. Highlights. RESULTS. Decree 7,945/13. Consumption grew 3.7 % compared to 1 Q12, manly driven by the residential and commercial segments whch increased its consumption by 3.2% and 7.8%; - PowerPoint PPT Presentation


Conference Call1st Quarter 20131Highlights6.9% increase in Net Revenue (without construction revenue) reaching R$ 1,883.1 million in the 1Q13;R$ 355,1 million EBITDA in 1Q13, wich represents a 18.1% decrease, as a consequence of the higher cost with energy purchase for distribution; R$ 78.6 million of net Income in the first quarter, a decrease of 43.8% over 1Q12. Adjusted by CVA, it reaches R$ 145.4 million, 4.8% above 1Q12.Net Debt of R$ 4,031.4 million, with a multiple for covenants at 2,73x.CDE transfers to the distributors to neutralize, since January/2013, the exposure to the spot market, the hydrological risk and the additional cost from thermal power plants dispatch;R$ 428 million were recognized as a reversal of non-manageable costs (Parcel A), whereas R$ 171 million were received in April and R$ 257 million in May, regarding the 1Q13 accountings.RESULTSDecree 7,945/13Consumption grew 3.7% compared to 1Q12, manly driven by the residential and commercial segments whch increased its consumption by 3.2% and 7.8%;Collection rate (LTM) for the first quarter reached 101.0%, 600 bps above the 1Q12;Non-tecnical losses for the past 12 months was of 44,9%, a reduction of 50 bps in comparison with december/2012;In 1Q13, investments amounted R$162.7 million, been R$ 127.0 million for the distribution segment.OPERATIONAL2

Energy Consumption Distribution Quarter+3.7%6,1806,29126.9C27.0C1Q121Q116,0876,4071Q1027.8C28.3C+1.8%1Q131Note: To preserve comparability in the market approved by Aneel in the tariff adjustment process, the billed energy of the free customers Valesul, CSN and CSA were excluded in view of these customers planned migration to the Basic Network.TOTAL MARKET (GWh) Industrial5%Free19%Others13%Commercial28%Residential35%With the consumption no longer billed by the change in criteria, the total energy consumption increase in the concession area would be 5.3% over 1Q12.3Total MarketRESIDENTIALINDUSTRIALCOMMERCIALOTHERSTOTAL1Q121Q13ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET QUARTER1Q121Q131Q121Q131Q121Q131Q121Q13FREECAPTIVE



Collection97.2%COLLECTION RATE12 MONTHSCOLLECTION RATE BY SEGMENTQUARTER95.0%101.0%100.2%92.0%99.2%104.7%100.6%1Q121Q1397.7%99.5%Mar/12Mar/13TotalRetailLarge ClientsPublic Sector5

Loss Prevention

INCORPORATIONGWh1Q131Q1236.919.7+87.3%ENERGY RECOVERYGWh1Q131Q1223.97.2LOSS (12 MONTHS)42.2%41.2%32.9%% Non-technical losses/ LV MarketNon-technical losses GWhTechnical losses GWh% Non-technical losses / LV Market - Regulatory5,4572,3817,6657,83844.9%+231.9%Mar/13Jun/12Mar/122,3495,31643.1%6,0072,5778,584Sep/125,6152,4328,047Dec/1245.4%6,0292,6188,647

6Losses Control InitiativesResults until March/13

Average losses reduction: 23.0 p.p.Average Collection increase: 14.5 p.p.Average losses reduction : 49.5 p.p.Average Collection increase : 80.4 p.p.FavelasZero Losses Area (APZ)

Net RevenueIndustrial 5.5%NET REVENUE (R$MN)Generation 7.1%Distribution 84.0%** NET REVENUE BY SEGMENT (1Q13)*Commercialization 8.6%* Eliminations not considered** Construction revenue not consideredNET REVENUE FROM DISTRIBUTION (1Q13)Commercial 29.7%Others (Captive) 11.7%Network Use (TUSD)(Free + Concessionaires) 8.0%

Residential 45.1%Construction RevenueRevenue w/out construction revenue


8Operating Costs and ExpensesManageable (distribution): R$ 317.1(17.8%)Generation and Commercialization: R$ 203.5(11.4%)Non manageable (distribution): R$ 1,261.2(70.8%) * Eliminations not considered** Construction revenue not consideredDISTRIBUTION MANAGEABLE COSTS (R$MN)COSTS (R$MN)*1Q13

333.1317.1-4.8%1Q131Q12R$ MN1Q121Q13Var.PMSO167.6184.09.7%Provisions86.545.2-47.7% PCLD61.629.0210.2% Contingencies24.916.2554.9%Depreciation75.780.66.5%Other operational/revenues expenses3.27.3127.3%Total333.1317.1-4.8%

9EBITDA CONSOLIDATED EBITDA (R$MN)EBITDA BY SEGMENT*1Q13Generation 33.4% (EBITDA Margin: 82.1%)Commercialization 2.8% (EBITDA Margin: 5.6%)Distribution 63.8%(EBITDA Margin: 13.5%)*Eliminations not considered



EBITDAEBITDA1Q12EBITDA1Q13Net RevenueNon-Manageable CostsManageable Costs (PMSO)ProvisionsRegulatory Assets and LiabilitiesRegulatory Assets and LiabilitiesAdjusted EBITDA 1Q12Adjusted EBITDA 1Q13EBITDA 1Q12 / 1Q13(R$ MN)Other operational/revenues

(2)433122(175)(19)(7)(1)101456+ 5.8%- 18.1%42

355431Equity Pick-up11

Net Income1Q121Q13EBITDAFinancial ResultTaxesOthersADJUESTED NET INCOME 1Q12 / 1Q13 (R$ MN)

Regulatory Assets and LiabilitiesRegulatory Assets and LiabilitiesAdjusted Net Income 1Q12Adjusted Net Income 1Q13

139(1)140(78)(9)30(4)7967145- 43.8%+ 4.8%12

IndebtednessAverage Term: 4.7 yearsAMORTIZATION SCHEDULE* (R$ MN)Nominal CostReal CostNET DEBTWithout Pension Fund*ConsideringHedge* Principal onlyCOST OF DEBT201220112010

Mar/13Net Debt / EBITDA


2.24%8.21%4.87%11.08%4.25%11.03%7.73%1.07%US$/Euro 16.2%CDI/Selic 57.5%TJLP 24.3%Others 2.0%357792759982616394176424242194

3,991.9 14,031.42.832.731 Reclassified to reflect the deconsolidation results of jointly controlled companies.13

InvestmentsCAPEX (R$ MN)CAPEX BREAKDOWN (R$ MN)1Q13Generation Projects26.9Quality Improvement13.4Generation Maintenance3.1Others17.2Develop. of Distribution System51.6Losses Combat44.7Investments in Electric Assets (Distribution)Commerc./Energy Eficiency26.1


1Q131Q12131.2127.011.735.8142.9162.7+13.9%14On March 8, 2013, the federal government issued the Decree 7,945 preventing the coverage of part of the non-manageable costs not covered by the 2013 tariff, through the resources transferred from the Energetic Development Accout (CDE) for the following costs:System Service Charge (ESS) The monthly transfer will be determined by the amounts settled in the CCEE.Involuntary Exposure associated with the quotas The monthly CDE transfer will cover the difference between the difference settlement price (PLD) and the tariff of the repositioning amount recognized in Lights last tariff adjustment. Hydrological Risk -The net monthly amount settled in the CCEE will be transferred directly via the CDE. It is worth mentioning that the amounts approved for Light reflect the methodology approved by Aneel on May 6th, 2013.Regulatory Framework

CDEtransfer1Q13without Decree1Q131Q12362.2144.9267.1371.0225.7291.970.4144.9267.1371.0225.727.2122.8235.4362.170.71,370.91,079.9818.2ENERGY PURCHASE (R$ MN)Availability ContractsOther AuctionsNorte FluminenseItaipuSpot

CDEtransfer1Q13Without Decree1Q131Q12ESSTransportOther Charges215.352.846.179.052.846.123.5130.949.5136.3314.2177.9203.9CHARGES AND TRANSPORT (R$ MN)+ 31.9%-12.8%2013 Tariff Review ScheduleDateEventJuly 11Aneel forwards first proposal (without remuneration and depreciation) to the concessionary and to the consumers representativesAugust 01Internet presentation of the Tariff Review Porposal prepared by AneelFrom Jul/28 to Aug/16Regulatory Asset Base fiscalizationSeptember 05Public HearingOctober 03Aneel forwards new proposal consolidated to the concessionary and to the consumers representativesOctober 24Aneel Board MeetingNovember 07Periodic Tariff Review DateImportant NoticeThis 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.17ContactsJoo Batista Zolini CarneiroCFO and IRO

Luiz Felipe Negreiros de SSuperintendent of Finance and Investor Relations+55 21 2211 WerneckIR Manager+ 55 21 2211