1

Rio de Janeiro, August 13, 2014

Distributor’s Consumption Increases by 3.0% in 2Q14

Losses fall by 0.5 p.p. and operating quality improves.

� Total energy consumption came to 6,495 GWh in 2Q14, 3.0% up on 2Q13, driven by increased consumption in the

residential and commercial segments, which moved up by 8.0% and 2.8%, respectively;

� Consolidated net revenue, excluding revenue from construction, totaled R$1,601.5 million in 2Q14, 1.4% up on

2Q13;

� Consolidated EBITDA1 amounted to R$239.3 million in the quarter, 13.9% lower than in 2Q13, mainly due to

higher energy purchases by the distributor – in the portion not covered by the transfer of the CDE – whose future

pass-through to tariffs is guaranteed by the regulations. When adjusted for the CVA (regulatory asset), EBITDA

came to R$359.7 million in 2Q14, 9.4% down on 2Q13.

� Net income totaled R$15.3 million in the quarter, a decrease of 73.8% due to the increase in the distributor’s non-

manageable energy purchase costs. When adjusted for the CVA, the Company posted net income of R$94.7

million, 30.8% down on 2Q13.

� Non-technical energy losses in the last 12 months reached 41.9% of billed energy in the low-voltage market (ANEEL

criterion) in June 2014, 0.5 p.p. down on 2Q13.

� Operating Quality indicators DEC - equivalent

length of interruption indicator and FEC -

equivalent frequency of interruption indicator

amounted to 15.12 hours and 7.52 times,

respectively, in the last 12 months, with a

significant improvement of 26.21% and 16.91%,

respectively, compared to the same period in

the previous year.

� Collections stood at 103.5% of billed

consumption in 2Q14, 0.7 p.p. down year-on-

year. Provisions for Past Due Accounts (PCLD)

represented 1.7% of gross billed energy, totaling

R$36.1 million, a 0.8 p.p. improvement over 2Q13.

� The Company closed 2Q14 with net debt of R$5,229.6 million, 2.1% down on March 2014. The net debt/EBITDA

ratio stood at 2.99x.

1 EBITDA is calculated in accordance with CVM Instruction 527/2012 and represents net income +income and social contribution tax + net

financial expenses + depreciation and amortization.

BM&FBOVESPA: LIGT3 Conference Call: IR contacts: OTC: LGSXY Date: 08/14/2014 Phone: +55 (21) 2211-7392/2828 Total Shares: 203,934,060 shares Time: 4:00 p.m. Brazil // 3:00 p.m. US ET Fax: +55 (21) 2211-2787 Free Float: 76,264,255 shares (37.57%) Phone numbers: +55 (11) 2188 0155 // +1 (646) 843 6054 E-mail: ri@light.com.br Market Cap (08/13/14): R$ 4.478 million Webcast: ri.light.com.br Website: ri.light.com.br

2Q14 2Q13 Var. % 1H14 1H13 Var. %

Grid Load* 8,796 8,619 2.1% 19,741 18,529 6.5%

Billed Energy - Captive Market 5,176 4,954 4.5% 11,292 10,526 7.3%

Consumption in the concession area 6,495 6,304 3.0% 13,869 13,145 5.5%

Transported Energy - TUSD 1,319 1,349 -2.3% 2,576 2,618 -1.6%

Sold Energy - Generation 1,093 1,175 -7.0% 2,358 2,442 -3.4%

Commercializated Energy (Esco) 1,314 1,036 26.8% 2,652 2,066 28.3%

2Q14 2Q13 Var. % 1H14 1H13 Var. %

Net Revenue** 1,601 1,579 1.4% 3,720 3,344 11.2%

EBITDA 239 278 -13.9% 692 633 9.3%

EBITDA Margin** 14.9% 17.6% -2,7 p.p. 18.6% 18.9% -0,3 p.p.

Net Income 15 58 -73.8% 196 137 43.1%

Net Debt 5,230 4,056 28.9% 5,230 4,056 28.9%

Capex 182 164 11.1% 358 327 9.5%

* Own Load + network use

** Does not consider construction revenue

Operational Highlights (GWh)

Financial Highlights (R$ MN)

2

Presentation of 2Q13 results (comparison period)

The Company’s results for the second quarters and first half of 2013 were reclassified due to Management’s decision

to present PIS and COFINS tax credits on purchased energy as a reduction factor for purchased energy costs instead

of presenting them as a reduction in PIS and COFINS on revenue. The purpose of this reclassification was to align this

presentation criterion with the best corporate practices in the same sector.

The reclassification affected net revenue and non-managerial costs, but did not affect EBITDA or net income.

Management also reassessed the criterion for the presentation of contractual debt amortization with the pension

plan in the cash flow statement, which led to a reclassification of the 2013 period for comparison purposes.

For further information, see Exhibit VI of this report.

3

Table of Contents

Presentation of 2Q13 results (comparison period) ........................................................................................ 2 Table of Contents ............................................................................................................................................ 3 1. The Company............................................................................................................................................... 4 2. Operating Performance ............................................................................................................................... 5

2.1 Distribution .......................................................................................................................................... 5

Energy Balance ........................................................................................................................................ 8

Energy Losses........................................................................................................................................... 9

Collection ............................................................................................................................................... 12

Operating Quality .................................................................................................................................. 13

2.2 Generation ......................................................................................................................................... 14

2.3 Commercialization and Services ........................................................................................................ 15

3. Financial Performance ............................................................................................................................... 16 3.1 Net Revenue ....................................................................................................................................... 16

Consolidated .......................................................................................................................................... 16

Distribution ............................................................................................................................................ 16

Generation ............................................................................................................................................. 17

Commercialization and Services ............................................................................................................ 18

3.2 Costs and Expenses ............................................................................................................................ 19

Consolidated .......................................................................................................................................... 19

Distribution ............................................................................................................................................ 19

Generation ............................................................................................................................................. 22

Commercialization and Services ............................................................................................................ 23

3.3 EBITDA ................................................................................................................................................ 24

Consolidated .......................................................................................................................................... 24

Distribution ............................................................................................................................................ 26

Generation ............................................................................................................................................. 26

Commercialization and Services ............................................................................................................ 26

3.4 Consolidated Financial Result ............................................................................................................ 27

3.5 Debt .................................................................................................................................................... 28

3.6 Net Income ......................................................................................................................................... 30

3.7 Investments ........................................................................................................................................ 32

Generation Capacity Expansion Projects ............................................................................................... 33

4. Cash Flow .................................................................................................................................................. 36 5. Corporate Governance .............................................................................................................................. 37 6. Capital Market ........................................................................................................................................... 38

Dividends ............................................................................................................................................... 39

7. Recent Events ............................................................................................................................................ 41 8. Disclosure Program ................................................................................................................................... 42

Forward-looking Statements ................................................................................................................. 42

4

1. The Company

Light S.A. is a holding company that controls subsidiaries and affiliated companies in three main business segments:

energy distribution, generation and commercialization/services. In order to increase the transparency of its results

and provide investors with a better basis for evaluation, Light also presents its results by business segment. The

Company’s corporate structure on August 13, 2014 is shown below:

OPERATING INDICATORS - DISTRIBUTION 2Q14 2Q13 Var. %

Nº of Consumers (thousand) 4,156 4,128 0.7%

Nº of Employees 4,268 4,242 0.6%

Average provision tariff - R$/MWh 423 361 17.2%

Average provision tariff - R$/MWh (w/out taxes) 293 252 16.3%

Average energy purchase cost¹ - R$/MWh 153 139 10.3%

OPERATING INDICATORS - GENERATION 2Q14 2Q13 Var. %

Installed generation capacity (MW)* 961 942 2.0%

Assured energy (MW)* 698 687 1.7%

Pumping and internal losses (MW) 87 87 -

Available energy (Average MW)* 611 600 1.9%

Net Generation (GWh) 944 1,404 -32.8%

Load Factor 62.4% 62.3% 0,1 p.p.

¹Does not include purchase on spot.

* Includes proportionate share of associates

5

2. Operating Performance

2.1 Distribution

Total energy consumption in Light SESA’s concession area (captive clients + transport of free clients2) came to 6,495

GWh in 2Q14, 3.0% up on the same period in 2013, driven by the residential segment, with growth of 8%.

Residential consumption totaled 2,128 GWh, accounting for 32.8% of the total market. Although the average

temperature remained flat over 2Q13, dropping by just 0.1°C, the residential segment recorded robust growth,

climbing by 8.0% year-on-year.

Commercial clients consumed 2,017 GWh, 2.8% up on 2Q13 and representing 31.1% of the total. The commercial

segment’s constant growth in recent years has been fueled by the expansion of the consumer base and the

increasing use and ownership of refrigeration equipment in commercial establishments, especially retailers.

2 In view of ANEEL’s market ratification during the tariff revision process, consumption by the free client CSN was reincluded as of 4Q13.

6

Industrial consumption amounted to 1,385 GWh, equivalent to 21.3% of the total market, 3.0% down on 2Q13, due

to the reduced consumption by electro-intensive industries (steel and aluminum producers and certain chemical

companies), partially as a result of interruptions on World Cup game days.

The other consumption segments, which accounted for 14.8% of the total market, posted an upturn of 2.3% over

2Q13. The rural and public utility categories reported respective increases of 36.1% and 5.7%, while government

consumption fell by 0.1%. The rural, government, and public utility segments accounted for 0.3%, 6.1%, and 4.6% of

the total market, respectively.

Total energy consumption in Light SESA’s concession area (captive clients + transport of free clients3) came to 13,869

GWh in 1H14, 5.5% up on 1H13, fueled by the residential and commercial segments.

Residential consumption accounted for 35.2% of the total market and totaled 4,880 GWh in the first half, 11.1% up

year-on-year due to the substantial temperature increase in the summer of 2014.

Commercial clients consumed 4,284 GWh, 5.7% up on the same period last year. In 1H14, 11 clients migrated from

the captive market to the free market, adding period consumption of 27 GWh.

7

Industrial consumption amounted to 2,715 GWh in 1H14, 2.6% less than in 1H13 due to reduced consumption in the

steel/aluminum and chemical sectors. The other sectors recorded growth of 3.8% in the same period.

The other consumption segments, which accounted for 14.3% of the total market, posted an increase of 4.2% over

1H13, with the rural, government and public utility categories recording growth of 39.6%, 3.6% and 4.2%,

respectively.

8

Energy Balance

Energy Balance (GWh) 2Q14 2Q13 Var. % 1H14 1H13 Var. %

= Grid Load 8,796 8,619 2.1% 19,741 18,529 6.5%

- Energy transported to utilities 612 596 2.6% 1,226 1,229 -0.3%

- Energy transported to free customers 1,261 1,318 -4.4% 2,545 2,641 -3.7%

= Own Load 6,924 6,705 3.3% 15,970 14,659 8.9%

- Captive market consumption 5,176 4,954 4.5% 11,292 10,526 7.3%

Low Voltage Market 3,471 3,262 6.4% 7,701 7,058 9.1%

Medium Voltage Market 1,704 1,692 0.7% 3,591 3,468 3.6%

= Losses + Non Billed Energy 1,748 1,750 -0.1% 4,677 4,132 13.2%

240.5 4,880.4

Captive Billed Industrial

Energy 704.7

2,597.3 11,292.4

Commercial

15,969.5 3,826.9

Losses + Non Billed

3,795.1 16,255.0 Energy (**) Others

4,677.2 1,880.3

3,150.1

2,166.7

3,865.1

440.1

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

(**) Includes unbilled energy.

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

2) Power purchase data as of 04/07/2014 (subject to change).

Adjustment 31.2

COTAS

ANGRA I & II

Required E.

(CCEE)

DISTRIBUTION ENERGETIC BALANCE - GWh

Position: January - June 2014

PROINFAResidential

ITAIPU

(CCEE)

Own load

Light

AUCTIONS

(CCEE)

NORTE FLU

(CCEE)

Basic netw. Losses 254.2

OTHERS(*)

(CCEE)

9

Energy Losses

In the last 12 months, non-technical energy losses totaled 5,972 GWh, accounting for 41.9% of billed energy in the

low-voltage market (ANEEL criterion), 0.5 p.p. down on the 12 months ended March 2014. In comparison with the 12

months ended June 2013, when non-technical energy losses totaled 44.2% of the low-voltage market, there was a

reduction of 2.3 p.p.

Light SESA’s total energy losses amounted to 8,815 GWh, or 23.3% of the grid load, in the 12 months through June

2014.

In order to improve the reduction in non-technical energy losses, Light has been continuously investing in initiatives

that include conventional fraud inspection procedures, the upgrading of network and measurement systems, and the

Zero Loss Area program (APZ). These initiatives include:

• Consumer unit regularizations: The Company conducted 15,088 regularization procedures in the low, medium,

and high-voltage segments in 2Q14, 1.3% less than the 15,290 recorded in 2Q13. Energy incorporation in the first

half totaled 87.9 GWh, 24.4% up on the 70.7 GWh reported in 1H13. In the same period, recovered energy fell by

15.8%, from 78.8 GWh, in 1H13, to 66.4 GWh.

Normalizations 2Q14 2Q13 Var. % 1H14 1H13 Var. %

= Total 15,088 15,290 -1.3% 29,583 27,815 6.4%

- High / Medium Voltage 148 266 -44.4% 382 538 -29.0%

- Low Voltage 14,940 15,024 -0.6% 29,201 27,277 7.1%

Direct low voltage 12,712 13,834 -8.1% 24,749 25,039 -1.2%

Indirect low voltage 2,228 1,190 87.2% 4,452 2,238 98.9%

10

• Installation of remote electronic metering devices: SMC (centralized

metering system) devices are installed in areas with high loss rates,

with or without the support of Pacifying Police Units (UPPs). The UPPs

allows Light to have a stronger presence in combating default as well

as energy theft. The Company installed 7,380 such devices in UPP-

protected areas in 2Q14, resulting in the incorporation of 18.1 GWh.

In areas outside the sphere of the UPPs, Light installed 34,176

devices, with the incorporation of 18.7 GWh. As a result, the

Company closed 2Q14 with 509,000 installed electronic meters,

35.4% more than at the close of June 2013.

• Zero Loss Areas: In August 2012, the Company created the APZ Project, based on a combination of electronic

metering and a shielded network, supported by dedicated teams of technicians and commercial relations

personnel with clearly defined targets, whose compensation is tied to improving loss and default indicators

in their respective areas. A typical APZ has around 17,000 clients. The project, known commercially as Light

Legal, which receives support from SEBRAE in regard to the training of partnering micro-entrepreneurs,

closed June 2014 with 29 operational APZs and 505,000 clients in the Baixada Fluminense region and the

city’s south, west and north sides.

Since the beginning of the project until the end of 2Q14, 116,000 electronic meters have been installed in

the communities, and the APZs in place have already resulted in an average 30.0 p.p. reduction in non-

technical energy losses on low-voltage billings and an average revenue increase of 6.8 p.p. The table below

shows the results per installed APZ through June 2014 in the 22 areas where the results have been

determined:

11

Complementing the 22 areas where the results have already been determined, the table below shows the 7 APZs,

which account for 146 thousand clients, in the implementation phase, without recorded results, totaling 29

operating areas.

Non-Technical Losses

/ Grid Load*Collection Rate

Before Before

Monte Líbano 36% 92% N

Caxias 5 49% 94% N

Cordovil 28% 93% N

Éden 55% 86% N

Rio das Pedras 83% 75% N

Comunidades Centro 62% 89% Y

Nova Iguaçu 3 49% 89% N

UPP AreaNeighborhood

Before Current Before Current

Curicica 2010 13,174 38% 10% 95% 98% N

Realengo/Batan 2010/2013 20,122 38% 11% 94% 98% N/Y

Cosmos 1 2012 18,392 49% 15% 92% 97% N

Cosmos 2 2012 19,737 46% 15% 92% 106% N

Sepetiba 2012 20,849 57% 31% 88% 96% N

Caxias 1 e 2 2012 14,377 59% 33% 83% 94% N

Belford Roxo 1 e 2 2013 21,859 63% 23% 88% 95% N

Vigário Geral 2012 17,697 35% 13% 94% 101% N

Caxias 3 2013 17,433 43% 17% 96% 95% N

Nova Iguaçu 1 2013 20,431 49% 28% 90% 97% N

Nova Iguaçu 2 2013 21,995 46% 21% 88% 98% N

Nilópolis 2013 10,564 42% 28% 90% 96% N

Nilópolis Convencional 2010 11,156 38% 12% 94% 98% N

Ricardo de Albuquerque 2013 25,915 35% 13% 94% 98% N

Mesquita 2013 8,924 51% 23% 84% 96% N

Cabritos/Tabajaras/Chapéu

Mangueira/Babilônia/Santa Marta2012 8,310 68% 11% 62% 96% Y

Coelho da Rocha 2013 18,724 41% 11% 92% 97% N

Caxias 4 2013 19,789 42% 16% 90% 99% N

Alemão 2014 13,519 63% 33% 91% 94% Y

Cidade de Deus 1 2011 6,458 52% 32% 23% 98% Y

Tomazinho 2013 12,865 43% 18% 87% 95% N

Formiga/Borel/Macaco/Salgueiro/Andarai 2012 17,539 51% 27% 50% 89% Y

Média 359,829 50% 20% 89% 96%

UPP Area

* Reflects the results accumulated until mar/14 since the begining of the implementation of each APZ.

Subtitle: N = N / Y = Yes.

NeighborhoodImplementation

Year

Number of

clients

Non-Technical Losses /

Grid Load*Collection Rate

12

Collection

The 2Q14 collection rate stood at 103.5% of

billed consumption, 0.7 p.p. down on the same

period last year, primarily due to the 10.8 p.p.

reduction in government collection and the large

volume of medium-voltage client bills maturing

on the last day of June, which were cleared on

the first day of July.

The first-half collection rate came to 98.7%, 3.8

p.p. down on 2H13, mostly due to the

extraordinary tariff adjustment of January 24,

2013, which reduced tariffs by 19.63%, resulting

in an atypical collection rate in the first quarter of

2013.

In 2Q14, provisions for past due accounts (PCLD)

totaled R$36.1 million, represented 1.7% of gross

billed energy, R$12.4 million less than the R$48.4

million provisioned in 2Q13, or 2.5% of gross

billed energy.

2Q14 2Q13 Var. % 1H14 1H13 Var. %

PCLD 36.1 48.4 (12.4) 61.4 77.4 (16.1)

Provisions for Past Due Accounts

13

Operating Quality

In 2Q14, in the overhead distribution network, 193 medium-voltage distribution circuits were inspected/maintained,

572 transformers were replaced and 41,433 trees were pruned. In the underground distribution network, 4,433

transformer vaults and 14,789 manholes were inspected. In addition, 43 transformers, 28 switches and 230

protectors were maintained.

In the last 12 months, the moving average of the equivalent length of interruption indicator (DEC), expressed in time,

registered 15.12 hours, 26.21% down on the 12 months through June 2013, while that of the equivalent frequency of

interruption indicator (FEC), expressed in occurrences, stood at 7.52 times, down by 16.91% in the same period.

All indicators in 2Q14 reflect the improved performance of the network thanks to the reorganization of processes in

the distribution area and the initiatives implemented through the action plan initiated in June 2013. More intensive

tree pruning and energy network maintenance measures are having a positive impact on results, ensuring a better

DEC and FEC performance in 2Q14 than in 2Q13.

14

2.2 Generation

Light Energia sold 1,092.7 GWh in 2Q14, net of energy purchases, 7.0% down year-on-year. No energy was sold on

the captive market (ACR) in the quarter, due to expiration of the last existing captive energy sale contracts in

December 2013. These contracts were renegotiated on the free market (ACL), whose 2Q14 energy sales moved up by

26.4% as a result.

The energy purchase balance, net of spot market sales, came to 20.3 GWh in 2Q14, versus total sales of 40.6 GWh in

2Q13. Such result is explained by the low GSF (Generation Scaling Factors), due to the national system’s

exceptionally poor hydrological conditions, impacted by low average rainfall, except in the North and South

submarkets.

GSF in April, May, and June 2014 came to 98.74%, 93.61%, and 88.86%, respectively, versus 101.65%, 100.21%, and

97.79% in the same months in 2013. The average GSF in 2Q14 was 93.74%, 6.1 p.p. down year-on-year.

First-half energy sales on the free market (ACL) increased by 20.7% over the same period the year before, while spot

market sales climbed by a substantial 78.7%, due to less expressive ACL contract seasonality in 2014 than in 2013,

resulting in a greater difference between verified energy volumes and contracted energy volumes than in the

previous year.

LIGHT ENERGIA (GWh) 2Q14 2Q13 Var. % 1H14 1H13 Var. %

Regulated Contracting Environment Sales - 254.5 - - 518.1 -

Free Contracting Environment Sales 1,113.0 880.2 26.4% 2,244.1 1,859.8 20.7%

Spot Sales (CCEE) (20.3) 40.6 - 114.2 63.9 78.7%

Total 1,092.7 1,175.2 -7.0% 2,358.3 2,441.9 -3.4%

15

2.3 Commercialization and Services

In the second quarter of 2014, direct energy sales by Light Esco

and LightCom from conventional and subsidized sources totaled

1,313.5 GWh, 26.8% up on the 1,035.6 GWh recorded in the same

period in 2013. Year-to-date energy sales amounted to 2,651.5

GWh, 28.3% higher than the 2,066.4 Gwh reported in 1H13.

Currently, eight service projects are being implemented, two of

which related to retrofits in chilled water plants and the

implementation of energy generating plants in shopping malls in

Rio de Janeiro and São Paulo. Light Esco also maintains

operational and maintenance contracts with five shopping malls,

a hotel, and a business center in several Brazilian states.

In 2Q14, Light Esco’s cogeneration plant installed on the premises of Rio de Janeiro Refrescos, began supplying

energy to the entire factory, as well as producing steam, food quality CO2 and nitrogen. The solar power plant in the

Maracanã soccer stadium, a project undertaken in association with EDF Consultoria em Projetos de Geração de

Energia Ltda., was also concluded and inaugurated this quarter.

16

3. Financial Performance

3.1 Net Revenue

Consolidated

Consolidated net operating revenue totaled R$1,815.8 million in 2Q14, 3.5% down on 2Q13. Excluding revenue from

construction, which has a neutral effect on net income, consolidated net revenue moved up by 1.4% to R$1,601.5

million. All the Company’s segments recorded growth.

First-half consolidated net revenue increased by 11.5% year-on-year, or 11.2% excluding revenue from construction.

Distribution

Net revenue from distribution totaled R$1,652.8 million in 2Q14, a 5.3% decrease when compared to 2Q13.

Excluding revenue from construction, net revenue from distribution amounted to R$1,438.5 million, an increase of

3.2%.

Net Revenue (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Distribution

Billed consumption 1,341.8 1,275.6 5.2% 2,943.0 2,792.3 5.4%

Non billed energy (61.1) (44.0) 38.6% (45.0) (120.0) -62.5%

Network use (TUSD) 113.7 138.5 -17.9% 228.9 270.7 -15.4%

Short-Term (Spot)¹ 23.7 4.8 390.7% 23.7 4.8 390.7%

Others 20.4 19.4 5.1% 34.5 36.1 -4.4%

Subtotal (a) 1,438.5 1,394.3 3.2% 3,185.2 2,983.9 6.7%

Construction Revenue² 214.3 175.6 22.1% 377.8 332.8 13.5%

Subtotal (a') 1,652.8 1,569.9 5.3% 3,563.0 3,316.8 7.4%

Generation

Generation Sale (ACR+ACL) 119.7 117.1 2.2% 250.0 260.7 -4.1%

Short-Term¹ 11.1 13.2 -15.7% 89.5 13.2 578.2%

Others 2.6 1.7 52.4% 5.1 3.4 49.5%

Subtotal (b) 133.4 132.0 1.1% 344.6 277.3 24.3%

Commercialization and Services

Energy Sales 203.5 150.3 35.4% 430.4 299.1 43.9%

Services 11.4 2.6 329.7% 21.3 11.0 93.6%

Subtotal (c) 214.9 152.9 40.5% 451.6 310.1 45.6%

Others and Eliminations (d) (185.3) (99.7) 85.8% (261.3) (227.3) 14.9%

Total w/out construction revenue (a+b+c+d) 1,601.5 1,579.5 1.4% 3,720.2 3,344.0 11.2%

Total (a'+b+c+d) 1,815.8 1,755.1 3.5% 4,098.0 3,676.9 11.5%

¹ Balance of the settlement on the CCEE

² The subsidiary Light SESA counts revenues and costs, with zero margin, related to services of construction or improvement in

infrastructure used in services of electricity distribution.

17

The increase was primarily due to market growth of 3.0% and the average 1.3% upturn in the energy tariff as of

November 7, 2013 (excluding special obligations), ratified by the tariff revision process.

Revenue from demand surplus and exceeding reactive energy totaled R$10.9 million this quarter and revenue from

the tariff difference related to the special treatment of non-technical losses in the concession area amounted to

R$38.7 million, both of which are treated as special obligations. Although they are billed, they have not been

included in net revenue since the last tariff revision in November 2013.

The distribution market consists mostly of the residential and commercial segments, which together accounted for

60.4% of 2Q14 energy consumption and 74.1% of sales revenue.

Excluding revenue from construction, net revenue from distribution came to R$ 3,185.2 million in the first half, 6.7%

up on 1H13, primarily due to the 5.5% increase in total market consumption and the average 1.3% upturn in the

energy tariff following the November 2013 tariff revision.

Year-to-date revenue from exceeding demand and surplus reactive energy totaled R$28.0 million while revenue

regarded as special obligations for combating energy theft came to R$85.5 million.

Generation

Net revenue from generation totaled R$133.4 million in the quarter, 1.1% more than the R$132.0 million recorded in

2Q13, given that the ACL energy sales price, net of taxes, averaged R$107.5/MWh in 2Q14, 4.2% higher than the

R$103.2MWh, weighted by both markets (ACL and ACR), recorded in 2Q13.

First-half net revenue totaled R$344.6 million, 24.3% up on 1H13, due to the greater availability of energy sold on the

spot market in 1H14, at an average price of R$658.3/MWh.

18

Commercialization and Services

Net revenue from commercialization and services stood at R$214.9 million in 2Q14, 40.5% up on 2Q13.

Net revenue from energy resales increased by 35.4% in the same period, fueled by the 26.8% upturn in sales volume.

The average sale price, net of taxes, was R$154.9/MWh, versus R$145.1/MWh in 2Q13.

Net revenue from the service segment recorded a 329.7% increase in comparison to the same period of the previous

year, thanks to the operational start-up of four Light Esco’s projects this quarter, including the cogeneration plant on

the premises of Rio De Janeiro Refrescos.

First-half net revenue totaled R$451.6 million, 45.6% up on 1H13, as a result of the substantial upturn in this period

sales volume, together with higher prices, primarily due to the migration of Light Energia contracted energy to the

free market.

19

3.2 Costs and Expenses

Consolidated

In the second quarter of 2014, operating costs and expenses totaled R$1,673.4 million, 6.3% up year-on-year.

Excluding construction costs, consolidated costs and expenses climbed by 4.3% over 2Q13, due to the higher volume

of energy purchased by the distribution and commercialization companies.

Consolidated distribution costs and expenses, excluding construction costs, came to R$3,221.2 million in the first

half, 11.0% more than in 1H13.

Distribution

Costs and Expenses (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Distribution (1,606.7) (1,479.2) 8.6% (3,347.5) (3,078.6) 8.7%Distribution w/out Construction Revenue (1,392.4) (1,303.6) 6.8% (2,969.7) (2,745.8) 8.2%

Generation (56.3) (43.2) 30.2% (94.7) (81.4) 16.4%

Commercialization (192.3) (148.7) 29.3% (411.5) (296.0) 39.0%

Others and Eliminations 181.9 96.8 87.8% 254.7 221.2 15.1%

Consolidated w/out Construction Revenue (1,459.1) (1,398.7) 4.3% (3,221.2) (2,901.9) 11.0%

Consolidated (1,673.4) (1,574.3) 6.3% (3,599.0) (3,234.8) 11.3%

Costs and Expenses (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Non-Manageable Costs and Expenses (1,083.9) (935.6) 15.8% (2,293.1) (2,043.8) 12.2%

Energy Purchase costs (1,057.5) (913.6) 15.8% (2,246.6) (1,959.3) 14.7%

Costs with Charges and Transmission (125.6) (118.2) 6.3% (255.0) (289.8) -12.0%

Others (Mandatory Costs) 3.1 4.8 -35.0% 17.5 17.4 1.0%

Credit PIS/COFINS on purchase 96.2 91.4 5.3% 191.0 187.9 1.7%

Manageable Costs and Expenses (308.5) (368.0) -16.2% (676.6) (701.9) -3.6%

PMSO (207.1) (212.0) -2.3% (412.3) (412.7) -0.1%

Personnel (75.3) (65.2) 15.6% (144.3) (138.3) 4.4%

Material (4.0) (3.9) 0.8% (9.2) (7.6) 20.8%

Outsourced Services (100.8) (108.6) -7.2% (191.7) (197.2) -2.8%

Others (26.9) (34.2) -21.3% (67.2) (69.6) -3.5%

Provisions - Contingencies 21.9 (18.2) - (18.0) (34.4) -47.5%

Provisions - PCLD (36.1) (48.4) -25.5% (61.4) (77.4) -20.8%

Depreciation and Amortization (86.2) (83.8) 2.8% (171.6) (164.5) 4.3%

Other Operacional/Revenues Expenses (1.2) (5.7) -79.5% (13.3) (12.9) 2.6%

Total costs w/out Construction Revenue (1,392.4) (1,303.6) 6.8% (2,969.7) (2,745.8) 8.2%

Construction Revenue (214.3) (175.6) 22.1% (377.8) (332.8) 13.5%

Total Costs (1,606.7) (1,479.2) 8.6% (3,347.5) (3,078.6) 8.7%

20

In 2Q14, distribution costs and expenses moved up by 7.8% over 2Q13. Excluding construction costs, total costs and

expenses grew by 5.9%.

The distributor’s year-to-date distribution costs increased by 8.6%, while total costs and expenses, excluding

construction costs, moved up by 8.0%.

Non-manageable Costs and Expenses

In 2Q14, non-manageable costs and expenses came to R$1,083.9 million,

15.8% up on the same period in 2013, mainly due to the 15.8% upturn in

purchased energy costs. This result already includes the transfer of CDE

funds related to April and May 2014, totaling R$224.3 million, in

accordance with Order 1696/14 and Official Letter 92/2014.

The increase in purchased energy costs was a reflection of: (i) higher

costs associated with hydrological risk , given that the average GSF4 in

2Q14 was 6.1 p.p. lower than in 2Q13; (ii) contracting through the A-1

Auction, held in December 2013, and the A-0 Auction, held in April 2014,

at R$ 177.22/MWh and R$ 268.33/MWh, respectively, higher than the

prices covered by the tariff; (iii) contractual adjustments; (iv) the increase

in the average difference settlement price (PLD) from R$249.5/MWh in

2Q13 to R$680.8/MWh in 2Q14, which resulted in higher expenses with

Availability Contracts, due to thermal plant dispatch by the National

System Operator (ONS) as a result of depleted hydro plant reservoirs. The

2Q14 PLD upturn also impacted spot market purchases to offset

increased consumption in the concession area, which purchase volume

was of 198 GWh in 2Q14, as opposed to 3 GWh in 2Q13.

Costs with charges and transmission climbed by 6.3%, mainly due to the

23.9% upturn in energy transmission expenses as a result of a higher

volumes contracted with the basic network, together with the increase in the network usage charge.

Non-manageable costs are passed on to consumer tariffs and any increase or reduction in relation to the regulatory

level constitutes a regulatory asset or liability (CVA) balance, to be taken into account in the next tariff adjustment,

3 GSF in April, May, and June 2014 came to 98.74%, 93.61%, and 88.86%, respectively, versus 101.65%, 100.21%, and 97.79% in the same

months in 2013.

21

but which is not recorded in the income statement in accordance with International Financial Reporting Standards

(IFRS). In 2Q14, net regulatory assets totaled R$120.3 million, versus R$119.3 million in 2Q13.

The average purchased energy cost, excluding spot market purchases, amounted to R$153.4/MWh in 2Q14, 27.6%

up on the R$120.2/MWh recorded in 2Q13. Considering Spot market purchases, the average purchased energy cost

was of R$ 214.4 / MWh in 2Q14, higher than the R$124.7 / MWh registered in 2Q13.

The following table gives a breakdown of non-manageable costs:

Tariff Deficit

The unprecedented level of exposure to the spot market due the substitution of the auctions stipulated in the

legislation with the insufficient allocation of assured physical energy quotas and the cancellation of certain new

energy contracts entered into in previous years, together with the high prices in this market, reflecting low reservoir

levels and higher dispatch by the thermal plants, led to a substantial deficit in the distribution concessionaires.

In the first half of 2014 alone, Light SESA’s tariff deficit totaled R$1,635 million, comprising the following items: (i)

involuntary exposure to the spot market, accounting for R$1,238 million; (ii) the hydrological risk of the quotas, R$

39 million; (iii) availability contracts with thermal plants, R$299 million; (iv) energy contracted at the A0 auction,

R$28 million; and (v) energy contracted at the A1 auction, R$ 30 million.

In order to mitigate the impact of this deficit, the government issued, in 2014, Decrees 8203 and 8221, aimed at

totally or partially covering the additional costs arising from the involuntary spot-market exposure and the

Non-Manageable Costs and Expenses (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Energy Purchase costs (1,057.5) (913.6) 15.8% (2,246.6) (1,959.3) 14.7%

Itaipu (163.3) (165.0) -1.0% (331.3) (309.9) 6.9%

TPP Norte Fluminense (280.3) (270.0) 3.8% (557.6) (537.0) 3.8%

Short-Term Energy (Spot) (271.3) 18.9 - (1,516.9) (343.3) 341.9%

Energy auction (599.1) (457.2) 31.0% (1,205.9) (1,000.7) 20.5%

Availabilities Contracts (289.5) (236.5) 22.4% (581.3) (462.2) 25.8%

Others (309.6) (220.7) 40.3% (624.7) (538.5) 16.0%

CDE Funds 224.3 (1.6) - 1,377.1 290.3 374.4%

Hydrological risk - (1.6) - (51.1) 129.8 -

Quotas Exposure 138.1 - - 1,221.5 160.4 661.4%

Availabilities Contracts 86.2 - - 219.6 - -

CONER (Power Reserve) - - - (12.8) - -

Other Credits 32.0 (38.8) - (12.0) (58.6) -79.6%

Costs with Charges and Transmission (125.6) (118.2) 6.3% (255.0) (289.8) -12.0%

System Service Charge (ESS) (19.6) (85.1) -77.0% (46.2) (300.4) -84.6%

CDE - ESS - 57.4 - - 193.6 -

Transported Energy (62.8) (50.7) 23.9% (125.3) (103.5) 21.1%

Other Charges (43.2) (39.7) 8.8% (83.4) (79.6) 4.9%

Others (Mandatory Costs) 3.1 4.8 -35.0% 17.5 17.4 1.0%

Credit PIS / COFINS on purchase 96.2 91.4 5.3% 191.0 187.9 1.7%

Total (1,083.9) (935.6) 15.8% (2,293.1) (2,043.8) 12.2%

22

availability contracts. As a result Light received a total transfer of R$1,385 million in the first half, reducing its period

tariff deficit to R$250 million, which was covered by its cash position and which will be passed on to consumers in

the next tariff adjustment through the CVA.

Manageable Costs and Expenses

In 2Q14, manageable operating costs and expenses, comprising personnel, materials, outsourced services,

provisions, depreciation, other operating revenue /expenses and others totaled R$308.5 million, 16.2% down on

2Q13.

Costs and expenses from personnel, materials, outsourced services and others (PMSO) totaled R$207.1 million, 2.3%

down on the same period last year, due to the 21.3% reductions in the "others" line and the 7.2% decline in

outsourced services, partially offset by the 15.6% increase in personnel expenses.

The 15.6% upturn in the personnel line was primarily due to the lower volume invested in labor capitalization in

comparison with 2Q13.

The 7.2% reduction in costs from outsourced services was due to lower expenses with emergency and call center

services, reflecting the period decrease in distribution network interruptions.

The 21.3% year-on-year reduction in the “others” line was due to: (i) the R$3.2 million decline in various software

license renewals, which were concentrated in the second quarter last year; (ii) the R$1.0 million reduction in

expenses with cultural projects; and (iii) the R$1.0 million downturn in fleet costs due to the review of practices at

the end of 2013 aiming at optimizing vehicle use.

The provisions line totaled R$14.2 million, 78.8% down on 2Q13, mainly driven by the reversals of a tax provision and

two labor provisions amounting to R$33.0 million and R$8.9 million, respectively, due to a change in the expected

losses. In addition, provisions for past due accounts (PCLD) fell by 25.5%, from R$48.4 million, in 2Q13, to R$36.1

million.

The depreciation and amortization line increased by 2.8%, due to higher investments as a result of the incorporation

of more assets into the network in 2013.

The other operating revenue/expenses line totaled R$1.2 million, 79.5% down on the R$5.7 million recorded in 2Q13

due to the deactivation of intangible assets.

23

Generation

In 2Q14, Light Energia’s costs and expenses amounted to R$56.3 million, an increase of 30.2% over 2Q13 due to the

higher volume of purchased energy. As the GSF values were low in April, May, and June, energy had to be purchased

on the spot market to meet contractual obligations, which had an impact on the purchased energy cost

Second-quarter costs and expenses were broken down as follows: personnel (12.1%), materials and outsourced

services (8.3%), CUSD/CUST/purchased Energy (42.3%), and depreciation and others (37.4%). PMSO per MWh

generated by Light Energia plants in the quarter came to R$15.5/MWh, versus R$16.1/MWh in 2Q13.

Commercialization and Services

Costs and expenses totaled R$192.3 million in 2Q14, 29.3% higher than in the second quarter of 2013, due to the

23.1% increase in the cost of energy purchased for resale, due to the combination of higher volume and purchase

price.

Year-to-date costs and expenses increased by 39.0% over 1H13, mainly due to the increase in energy purchased for

resale and higher spot market prices in the first half. The 156.9% upturn in the materials and outsourced services line

was due to the operational start-up of several Light Esco projects this year, including the cogeneration plant installed

on the premises of Rio de Janeiro Refrescos.

Operating Costs and Expenses (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Personnel (2.2) (2.0) 11.4% (4.8) (3.9) 21.8%

Material and Outsourced Services (6.1) (4.2) 44.6% (18.0) (7.0) 156.9%

Purchased Energy (174.7) (141.9) 23.1% (378.9) (284.0) 33.4%

Depreciation (1.3) (0.0) 3329.7% (1.4) (0.1) 1676.4%

Other Operacional/Revenues Expenses (7.1) - - (7.1) - -

Others (includes provisions) (0.9) (0.6) 61.3% (1.4) (1.0) 40.8%

Total (192.3) (148.7) 29.3% (411.5) (296.0) 39.0%

Operating Costs and Expenses (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Personnel (6.8) (6.3) 7.6% (12.5) (11.6) 7.6%

Material and Outsourced Services (4.7) (5.2) -10.6% (8.3) (8.8) -5.1%

Purchased Energy (CUSD) (23.8) (10.3) 131.4% (31.7) (17.9) 77.2%

Depreciation (13.5) (13.7) -2.0% (27.0) (27.5) -1.9%

Other Operacional/Revenues Expenses (0.4) 0.2 - (0.4) 0.2 -

Others (includes provisions) (7.2) (7.8) -8.3% (14.9) (15.8) -5.7%

Total (56.3) (43.2) 30.2% (94.7) (81.4) 16.4%

24

3.3 EBITDA5

Consolidated

Consolidated EBITDA totaled R$239.3 million in 2Q14, 13.9% down on 2Q13, while the EBITDA margin6 decreased

from 17.6% to 14.9% in the same period. Distribution and generation EBITDA fell by 24.2% and 12.1%, respectively,

while EBITDA from commercialization and services moved up by 449.3%.

This quarter’s EBITDA can be largely explained by energy purchase costs. Both the distributor and the generation

company suffered substantial increases in these costs. In the case of the distributor, this occurred in the portion not

covered by the CDE transfer, while the market difference generator was penalized by the deterioration in the

system’s hydrological condition, being forced to settle difference on the spot market in order to comply with its

contractual obligations.

4 EBITDA is calculated in accordance with CVM Instruction 527/2012 and refers to net income + income and social contribution taxes + the net

financial expense + depreciation and amortization. 5 Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, due to the booking of

revenues and costs with a zero margin.

Consolidated EBITDA (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var.%

Distribution 132.3 174.5 -24.2% 387.1 402.6 -3.9%

Generation 88.0 100.1 -12.1% 270.8 219.4 23.4%

Commercialization 23.9 4.4 449.3% 41.5 14.3 190.6%

Others and eliminations (4.9) (1.1) 360.2% (7.1) (3.3) 118.9%

Total 239.3 277.9 -13.9% 692.3 633.1 9.3%

EBITDA Margin (%) 14.9% 17.6% -2,7 p.p 18.6% 18.9% -0,3 p.p

Regulatory Assets and Liabilities 120.3 119.3 0.9% 102.1 220.4 -53.7%

Adjusted EBITDA 359.7 397.2 -9.4% 794.3 853.5 -6.9%

25

The distribution segment’s share of consolidated EBITDA fell from 62. 6%, in 2Q13, to 54.2%, while the share of the

generation and commercialization segments climbed from 35.9% to 36.0% and from 1.6% to 9.8%, respectively, in

the same period.

When adjusted for the CVA, i.e. regulatory assets and liabilities that will be taken into account in the distributor’s

next tariff adjustment, adjusted EBITDA came to R$359.7 million, 9.4% down on 2Q13. Consolidated EBITDA totaled

R$692.3 million in the first half, 9.3% down on 1H13. Including the CVA, EBITDA came to R$794.3 million, 6.9% down

year-on-year.

26

Distribution

The distribution company’s EBITDA totaled R$132.3 million in 2Q14, 24.2% down on 2Q13, mainly explained by (i)

increase in energy purchase costs, especially in the portion not covered by the transfer of the CDE; and (ii) reduction

in the regulatory EBITDA due to the last tariff revision process, ratified in November 2013, in which a 7.5% actual net

WACC was applied, inferior to the 9.95% WACC from the previous cycle (2008 to 2013). The EBITDA margin7 stood at

9.2%, 3.3 p.p. less than in 2Q13. When adjusted for the CVA, distribution EBITDA came to R$252.7 million, 14.0%

down on the same period last year.

In the first half, the distribution company posted EBITDA of R$387.1 million, 3.9% down on 1H13, due to the tariff

revision process impacts. Including regulatory assets and liabilities (CVA), distribution EBITDA came to R$489.2

million, 21.5% less than in the same period last year. The year-to-date EBITDA margin stood at 12.2%, 1.3 p.p. lower

than in 1H13.

Generation

Light Energia recorded an EBITDA of R$88.0 million in 2Q14, 12.1% down on 2Q13, due to spot market energy

purchases as a result of the low Generation Scaling Factor GSF levels resulting from the worsening of the system’s

hydrological situation. The EBITDA margin came to 66.0%, 9.9 p.p. down year-on-year.

In 1H13, EBITDA totaled 270.8 million, 23.4% up on the first half of 2013, due to the sale of energy on the spot

market in the opening months of the year, accompanied by an EBITDA margin of 78.6%, down by 0.5 p.p.

Commercialization and Services

EBITDA from commercialization and services totaled R$23.9 million in 2Q14, 449.3% higher than in 2Q13, thanks to

the 26.8% increase in energy sales volume and higher prices in 2Q14.

EBITDA in the first six months came to R$41.5 million, 190.6% up on 1H13.

The EBITDA margin stood at 11.1% in the second quarter, 8.3 p.p. up on 2Q14, and 9.2% in the first half, a 4.6 p.p.

year-on-year improvement.

6 Revenue from construction was not considered in the calculation of the consolidated and distribution EBITDA margins, due to the booking of

revenues and costs with a zero margin.

27

3.4 Consolidated Financial Result

The 2Q14 financial result was a negative R$111.8 million, a 17.1% deterioration over the negative R$95.5 million

posted in 2Q13.

Financial revenue totaled R$66.4 million, 49.3% down year-on-year, mainly due to the net swap result of R$76.9

million in 2Q13 as a result of the depreciation of the Real against the Dollar in this period.

Second-quarter financial expenses came to R$178.6 million, 21.1% down on 2Q13, mainly due to the settlement of

the debt with Braslight in 1Q14, as well as the reduction in the monetary and currency variation resulting from the

appreciation of the Real against the dollar, partially offset by the swap result.

The first-half financial result was a negative R$190.6 million, an 18.7% improvement over the negative result in 2H13.

Financial Result (R$ MN) 2Q14 2Q13 Var.% 1H14 1H13 Var. %

Financial Revenues 66.8 130.9 -49.0% 163.8 147.0 11.5%

Income from financial investments 28.2 12.2 131.6% 44.7 15.5 188.7%

Moratory Increase / Debts Penalty 20.0 24.0 -16.8% 41.4 45.2 -8.5%

Others Financial Revenues 18.6 17.8 4.3% 77.8 31.8 144.4%

Financial Expenses (178.6) (226.4) -21.1% (354.5) (381.3) -7.0%

Debt Expenses (131.0) (89.9) 45.7% (247.4) (162.4) 52.4%

Monetary and Exchange variation 24.7 (71.7) - 49.0 (62.9) -

Net Swap Operations (47.2) - - (94.5) - -

Restatement of provision for contingencies (9.3) (6.3) 47.3% (15.1) (25.3) -40.2%

Restatement of R&D/PEE/FNDCT (2.4) (4.9) -51.5% (4.5) (6.0) -24.8%

Interest and fines on taxes (0.8) (5.4) -85.9% (0.8) (7.2) -88.7%

Installment payment - fines and interest rates Law 11.941/09 (REFIS) (3.7) (2.8) 30.5% (7.4) (5.5) 34.4%

Present value adjustment 0.7 0.6 5.6% 2.0 0.9 109.8%

DIC/FIC Compensation (7.0) (12.5) -44.5% (26.3) (37.6) -30.1%

Other Financial Expenses (Includes IOF) (2.7) (3.0) -11.5% (5.8) (5.6) 3.6%

Braslight (private pension fund) - (30.5) - (3.5) (69.9) -94.9%

Charges - (15.6) - (3.5) (31.2) -88.7%

Monetary and Exchange Variation - (14.8) - - (38.6) -

Total (111.8) (95.5) 17.1% (190.6) (234.3) -18.7%

28

3.5 Debt

R$ MN Short Term % Long Term % Total %

Brazilian Currency 946.0 13.9% 4,881.9 71.5% 5,827.9 85.4%

Light SESA 810.1 11.9% 4,261.8 62.5% 5,071.9 74.3%

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

Debenture 7th Issue 337.1 4.9% 323.7 4.7% 660.7 9.7%

Debenture 8th Issue 42.8 0.6% 430.5 6.3% 473.3 6.9%

Debenture 9th Issue - series A 14.1 0.2% 995.7 14.6% 1,009.8 14.8%

Debenture 9th Issue - series B 4.4 0.1% 636.1 9.3% 640.5 9.4%

Debenture 10th Issue 11.7 0.2% 744.3 10.9% 756.0 11.1%

Eletrobras 1.2 0.0% 5.4 0.1% 6.6 0.1%

CCB Bradesco 98.1 1.4% 225.0 3.3% 323.1 4.7%

Working Capital - Santander 87.4 1.3% - - 87.4 1.3%

BNDES (CAPEX) 121.2 1.8% 448.0 6.6% 569.1 8.3%

BNDES FINEM 82.5 1.2% 135.9 2.0% 218.4 3.2%

BNDES Olympics 2.2 0.0% 26.2 0.4% 28.5 0.4%

Banco do Brasil 5.7 0.1% 150.0 2.2% 155.7 2.3%

Others 1.7 0.0% 141.1 2.1% 142.8 2.1%

Light Energia 126.8 1.9% 581.7 8.5% 708.5 10.4%

Debenture 1st Issue 89.2 1.3% 84.7 1.2% 173.9 2.5%

Debenture 2nd Issue 17.0 0.2% 423.8 6.2% 440.7 6.5%

Debenture 3rd Issue 2.7 0.0% 27.4 0.4% 30.1 0.4%

BNDES (CAPEX) 7.0 0.1% 19.2 0.3% 26.2 0.4%

BNDES FINEM 10.9 0.2% 26.7 0.4% 37.6 0.6%

Others 0.0 0.0% - - 0.0 0.0%

Light ESCO 9.1 0.1% 38.4 0.6% 47.5 0.7%

BNDES - PROESCO 9.1 0.1% 38.4 0.6% 47.5 0.7%0.0 0.0% 0.0 0.0% 0.0 0.0%

Foreing Currency 154.4 2.3% 841.2 12.3% 995.6 14.6%

Light SESA 153.6 2.3% 665.0 9.7% 818.6 12.0%

National Treasury 1.3 0.0% 32.8 0.5% 34.1 0.5%

Merril Lynch 45.5 0.7% 59.5 0.9% 104.9 1.5%

BNP 105.9 1.6% - - 105.9 1.6%

Citibank 0.8 0.0% 440.5 6.5% 441.3 6.5%

Bank Tokyo - Mitsubishi 0.1 0.0% 132.2 1.9% 132.3 1.9%

Light Energia 0.8 0.0% 176.2 2.6% 177.0 2.6%

Citibank 0.8 0.0% 176.2 2.6% 177.0 2.6%

Gross Debt 1,100.4 16.1% 5,723.0 83.9% 6,823.5 100.0%

Cash 1,593.9

Net Debt (a) 5,229.6

R$ MN jun/13 mar/14 jun/14 % jun 13 % mar 14

Net Debt 4,056.1 5,341.8 5,229.6 28.9% -2.1%

Braslight 1,066.6 - - - -

Net Debt + Braslight 5,122.7 5,341.8 5,229.6 2.1% -2.1%

29

The Company’s gross debt in June 2014 was of R$6,823.5

million, 12.8% more than at the end of 1Q14, and 11.8%, or

R$722.2 million, up year-on-year due to the raising of funds

in the period: (i) the disbursement of R$87.1 million from the

BNDES to Light SESA in the last 12 months,; (ii) a foreign-

currency loan of R$235.8 million from Citibank to Light SESA,

hedged by a Real swap transaction (February 2014); (iii) the

disbursement of FINEP resources totaling R$136.0 million in

May 2014, at 4% p.a.; (iv) Light SESA’s 10th debenture issue,

totaling R$750.0 million, with Banco do Brasil, Itaú,

and Bradesco, at 115% of the CDI interbank rate.

The funds were used for investments, working

capital and, especially, the prepayment of more

expensive liabilities, including the February 2014

settlement of the R$1,224.7 million debt with the

Braslight pension fund, and settlement of the 5th

debenture issue, at the CDI plus 1.5%.

The Net debt/EBITDA ratio moved up from 2.90x in

March 2014 to 2.99x in June 2014, still within the

Company’s net debt/EBITDA covenant

limit of 3.0x. The Company also has a

covenant for the EBITDA/interest

expense ratio, which should be higher

than 2.5x. The result for this indicator in

March was 3.31x. It is worth noting that

non-compliance with this covenant only

occurs if the limits determined by the

indicators are not respected for two

consecutive or four alternate quarters.

The Company’s debt has an average term to maturity of 3.9 years and the average cost of Real-denominated debt

was 10.5% p.a., both in line with the end-of-March figure. At the close of the quarter, 16.4% of total debt was

denominated in foreign currency, but, considering the FX hedge horizon, only 0.3% of this total was exposed to

foreign currency risk, 0.2 p.p. less than at the end of March. Light’s FX hedge policy consists of protecting cash flow

jun/14 dec/13 2012

Gross Debt 6,823.5 5,815.3 4,666.0

+ Swap (74.6) (135.1) -29.4

+ Pension Fund 0.0 1,224.7 1,054.7

- Cash 1,593.9 1,790.4 392.9

= Net Debt for covenants (a) 5,155.0 5,114.4 5,298.4

EBITDA (12 months) 1,756.0 1,696.8 1,456.2

+ Provision 185.1 210.9 475.2

- Other Operational Revenues/Expenses 75.5 (20.7) 375.6

+ Regulatory Assets and Liabilities (CVA) (139.3) (21.0) 330.4

- Financial CVA 0 5.1 14.0

= EBITDA for covenants (b) 1,726.3 1,902.4 1,872.2

2.99 2.69 2.83

Covenants Multiple R$ MN

Net Debt / EBITDA (a/b)

30

from foreign-currency-denominated debt falling due within the next 24 months (principal and interest) through the

use of non-cash swap instruments with premier financial institutions. Funding via Central Bank Resolution 4131,

from Merrill Lynch, BNP, Citibank, and Bank Tokyo-Mitsubishi, was contracted with swaps for the entire term of the

debt.

3.6 Net Income

Light posted a net profit of R$15.3 million in 2Q14, 73.8% down on the net income of R$58.2 million reported in the

second quarter of 2013. When adjusted for regulatory assets and liabilities (CVA), not recorded in the income

statement, adjusted net income came to R$94.7 million, 30.8% down on 2Q13.

Such result can be explained, mostly, by the increase in purchased energy costs, especially from the distributor, with

an impact in the portion not covered by the CDE transfer. On the other hand, the generator was penalized by the

deterioration of the system’s hydrological condition, being forced to settle difference on the spot market to comply

with contractual obligations. Another relevant impact was the reduction in the regulatory EBITDA due to the last

tariff revision process, ratified in November 2013, in which a 7.5% actual net WACC was applied, inferior to the

9.95% WACC from the previous cycle (2008 to 2013).

31

First-half net income amounted totaled R$195.8 million, 43.1% up year-on-year, or R$263.2 million when adjusted

for regulatory assets and liabilities (CVA), 6.8% down year-on-year.

32

3.7 Investments

Light invested R$357.8 million in 1H14, 9.5% more than in 1H13.

The distribution segment absorbed 92.8% of the total, or R$332.2 million, 21.8% up on 1H13. Of this total: (i)

R$154.8 million went to the development and expansion of distribution networks in order to keep pace with market

growth, strengthen the network and improve quality, including in the underground network; (ii) R$119.7 million

went to the energy loss project (network protection, electronic meters, and fraud regularization); and (iii) R$36.4

million went to specific investments related to the World Cup and Olympic Games.

Commercialization and energy efficiency Investments fell from R$33.1 million in 1H13 to R$5.0 million in 1H14, due

to the conclusion of a major co-generation project in April this year.

CAPEX (R$MN) 1H14 Partic. % 1H13 Partic. % Var %

Distribution 332.2 92.8% 272.8 83.5% 21.8%

Network reinforcement and expansion 207.5 62.5% 175.0 64.2% 18.6%

Losses 119.7 36.0% 92.6 33.9% 29.3%

Others 5.0 1.5% 5.2 1.9% -4.7%

Administration 12.2 3.4% 13.7 4.2% -10.8%

Commercial./ Energy Efficiency 5.0 1.4% 33.1 10.1% -84.9%

Generation 8.4 2.3% 7.1 2.2% 17.9%

Total 357.8 100.0% 326.7 100.0% 9.5%

33

Generation Capacity Expansion Projects

One of the pillars of Light’s Strategic Plan is to increase the share of energy generation in its results. With this in

mind, the Company has announced several projects to boost installed generating capacity, which now totals 961

MW. With the incorporation of the scheduled expansion projects, the position on June 30 was as follows:

Existing Power Plants

Installed

Capacity

(MW)*

Assured

Energy

(MW)*

Operation

Start Act Date

Concession /

Authorization

Expiration Date

Fontes Nova 132 104 1942 jun-96 2026

Nilo Peçanha 380 335 1953 jun-96 2026

Pereira Passos 100 51 1962 jun-96 2026

Ilha dos Pombos 187 115 1924 jun-96 2026

Santa Branca 56 32 1999 jun-96 2026

Elevatórias - (87) - - -

SHPP Paracambi¹ 13 10 2012 fev-01 2031

Renova² 93 51 2008 dez-03 2033

Total 961 611

New Projects

Installed

Capacity

(MW)*

Assured

Energy

(MW)*

Operation

Start

SHPP Lajes³ 17 15 mai/16

Belo Monte4 280 114 fev-15

Guanhães¹ 22 13

Dores de Guanhães 7 4 -

Senhora do Pôrto 6 3 -

Jacaré 5 3 dez-14

Fortuna II 5 3 mar-15

Renova² 395 201

LER 2010 37 18 set-14

A-3 2011 48 23 mai-15

A-5 2012 5 3 jan-17

LER 2013 35 18 set-15

A-5 2013 78 40 mai/18

PPA 87 48 2015/2016

Mercado Livre I 5 3 jan-16

Mercado Livre II 21 11 jan-17

Mercado Livre III 6 4 abr-15

Mercado Livre IV** 74 32 -

Total 714 343

*Light's proportional Participation

¹ 51% Light

² 21.86% da Light / Considera que Renova detém 60% da Chipley, que por sua vez détem 51% da Brasil PCH

³Previsão de geração média de 15 MW

42.49% Light

**Including the exercise of the option by Cemig GT for an interest of up to 50% in the

2051

2052

2050

2031

2047

2048

2050

2050

2051

2032

2032

2032

2031

2046

Current Generation Park

Generation Capacity Expansion Projects

Concession / Authorization

Expiration Date

2026

2045

34

The second quarter of 2014 was marked by the following events related to projects for expanding Light’s generating

capacity:

Lajes SHP

• The basic project has already been approved by Aneel. In June 2013, Aneel altered the public service exploration

regime to independent energy producer. As a result, the SHP obtained a 50% reduction in TUSD and TUST fees. The

process of contracting the construction company is under way and once this is defined, it will be possible to begin

the works, with start-up scheduled for the first half of 2016, given that the project has already been granted an

installation license. The 17 MW turbine will be installed in the old powerhouse of the Fontes Velha power plant. In

addition to increasing generating capacity, the project also brings certain other benefits, such as increasing

operational flexibility, upgrading the supply of the CEDAE water main, controlling the Piraí River’s water level, and

improving the quality of the water in the Lajes Reservoir.

Guanhães Energia

• Guanhães Energia S.A. is a special purpose entity (SPE) set up to implant four small hydroelectric power plants

(SHPs) – Dores de Guanhães, Senhora do Porto, Jacaré and Fortuna II, all of which in the state of Minas Gerais, with a

joint installed capacity of 44 MW. Guanhães Energia’s shareholders are Light Energia S.A. (51%) and CEMIG Geração

e Transmissão S.A. (49%).

The project has been impacted by geological and environmental problems which have postponed the start-up date.

Belo Monte Hydroelectric Power Plant

• In October 2011, Amazônia Energia, owned by Light (25.5%) and Cemig (74.5%), acquired 9.77% of Norte Energia,

the consortium responsible for building and operating the Belo Monte Hydroelectric Power Plant. Located on the

Xingu River in the state of Pará, Belo Monte is the largest 100% Brazilian hydro plant and the fourth largest in the

world. It has an installed capacity of 11,233 MW and assured energy of 4,571 average MW. So far, 56% of the

construction works have been concluded, as has 20% of the spillway, which will take water from the Xingu River to

the Belo Monte powerhouse. Soil and rock excavation are 68.20% and 38.16% complete, respectively.

In May 2014, Norte Energia submitted a report to Aneel detailing the various stoppages, due to various reasons, that

have jeopardized progress of the works and their effects on the project schedule. The request, currently being

analyzed by the regulatory authority, is directly related to the impacts caused by the blocking of access to and

occupation of the construction sites, strikes and temporary injunctions. Norte Energia is fully committed to

minimizing the impact of the problems on the Belo Monte schedule.

35

The concession agreement for Transmission Line Auction 11/2013 was signed in June 2014. This line will connect the

Belo Monte plant to the Southeast region of the country and will be constructed by the IE Belo Monte consortium,

comprising Furnas, State Grid Brazil Holding and Eletronorte.

Renova Energia (“Renova”)

In 2013, Renova announced the acquisition of 51% of Brasil PCH and the entry of Cemig GT into Renova’s controlling

block. Brasil PCH has 13 SHPs with a joint installed capacity of 291 MW and assured energy of 194 average MW. The

acquisition was strategic for Renova, since it added operational assets to its base, increasing its operating cash flow

generation, thus improving the balance between operational projects and projects under construction and

development.

In February 2014, the Company paid R$739.9 million for the above acquisition. The amount remaining from the

capital increase to be subscribed until September of this year by Cemig GT or a specific purpose entity, in which

Cemig GT will retain an interest of at least 50% and a private equity investment fund will hold an interest of 50% at

most, totaling R$810.1 million, was transferred to Renova in March 2014 as an advance for a future capital increase

by Cemig GT.

After the capital increase, a new shareholders’ agreement will be executed, through which Cemig GT or the SPE, RR

Participações and Light Energia. will become part of the Company’s controlling block.

Currently, the Company has a 60% interest in the specific purpose entity, Chipley SP Participações S.A., which owns

51% of Brasil PCH.

On June 4, long-term financing of R$1,044.1 million was approved for Alto Sertão II, comprising those wind farms

that sold energy at the Reserve Energy Auction in 2010 (“LER 2010”) and the New Energy Auction in 2011 (“LEN 2011

(A-3)”), with an installed capacity of 386.1 MW. The contracting and disbursement of this financing will permit

settlement of the bridge loans from the BNDES and the Promissory Notes issued this year.

Also in June, Renova’s 14 wind farms that sold energy at the Reserve Energy Auction in 2009 (“LER 2009”), with a

total installed capacity of 294.4 MW, began the commissioning process, with commercial start-up scheduled for July

4, when their energy should be available to the system.

36

4. Cash Flow

The Company closed 2Q14 with a cash position of R$1,579.1 million, 22.5% down year-on-year, primarily due to

funding of R$1.6 billion in 2Q13, which increased the cash position in the latter period, plus the reduction in working

capital and net profit, both of which were pressured by the high cost of energy purchases.

R$ MN 2Q14 2Q13 1H14 1H13

Cash in the Beginning of the Period (1) 694.4 435.9 546.4 230.4

Net Income 15.3 58.2 195.8 136.9

Social Contributions & Income Tax 11.2 26.6 105.8 69.8

Net Income before Social Contributions & Income Tax 26.5 84.8 301.6 206.7

Provision for Delinquency 36.1 48.4 61.4 77.4

Depreciation and Amortization 101.0 97.7 200.0 192.1

Loss (gain) on intangible sales / Residual value of disposals

fixed asset 3.0 7.0 3.0 8.9

Losses (gains) on financing exchange activities (24.7) 72.3 (49.0) 62.9

Net Interests and Monetary Variations 131.3 86.4 248.2 171.8

Braslight - 30.5 3.5 69.9

Atualization / provisions reversal (15.3) 21.0 24.1 55.8

Equity Pikup 4.0 0.5 6.8 1.1

Financial Assets of the Concession 1.8 (6.7) (44.8) (13.1)

Others 47.2 (76.9) 94.5 (54.5)

Subtotal 310.9 365.0 849.3 779.1

Working Capital (800.4) (314.0) (134.1) 197.0

Contingencies (14.2) (22.2) (35.6) (37.8)

Deferred Taxes 29.6 36.5 (4.6) (8.1)

Braslight 0.1 (0.9) (3.5) (1.2)

CDE fund 971.6 428.3 - -

Others (115.5) (25.4) (28.6) (114.1)

Taxes Paid (17.8) (13.3) (111.3) (80.4)

Interest Paid (176.0) (98.0) (230.7) (147.3)

Cash from Operating Activities (2) 188.3 356.0 301.0 587.1

Finance Obtained 913.6 2,158.4 1,172.2 2,433.5

Dividends - (74.8) - (74.8)

Loans and financing payments (81.3) (595.6) (152.5) (658.1)

Contractual debt amortization with the pension plan - (28.3) (1,224.7) (56.6)

Financing Activities (3) 832.3 1,459.7 (204.9) 1,644.0

Fixed Assets/Intangible/Financial Assets (130.8) (186.0) (271.0) (372.6)

Inflow/Acquisitions on Investment (5.1) (28.3) (17.1) (59.6)

Financial Investments - - 1,224.7 8.0

Investment Activities (4) (135.9) (214.4) 936.6 (424.2)

Cash in the End of the Period (1+2+3+4) 1,579.1 2,037.3 1,579.0 2,037.3

Cash Generation (2+3+4) 884.7 1,601.4 1,032.6 1,807.0

37

5. Corporate Governance

On June 30, 2014, the capital stock of Light S.A. comprised 203,934,060 common shares, 97,629,463 of which

outstanding.

The following chart shows Light’s shareholding structure in June 2014:

38

6. Capital Market

Light’s shares have been listed in the BM&FBovespa’s Novo Mercado trading segment since July 2005, therefore

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

granting special rights to minority shareholders. Light S.A.’s shares are included in the following indices: Ibovespa,

IGC (Corporate Governance Index), IEE (Electric Power Index), IBrX (Brazil Index), ISE (Corporate Sustainability Index),

ITAG (Special Tag Along Stock Index) and IDIV (Dividend Index). They are also traded on the U.S. over-the-counter

(OTC) market as Level 1 ADRs under the ticker LGSXY.

At the end of June 2014, Light S.A.’s shares (LIGT3) were priced at R$21,756. The Company’s market cap (no. of

shares x share price) closed the quarter at approximately R$4,397 million.

The charts below give a breakdown of the Company’s free float in June 2014.

Daily Average 2Q14 2Q13 1H14 1H13

Number of shares traded (Thousand) 796.9 1,156.7 933.2 1,004.3

Number of Transactions 3,315.0 3,935.1 3,338 3,409

Traded Volume (R$ Million) 15.7 20.7 17.5 18.9

Quotation per shares: (Closing)* R$ 21.56 R$ 15.17 R$ 21.56 R$ 15.17

Share Valuing 15.0% -20.4% -0.4% -28.3%

IEE Valuing 13.3% -8.4% 9.8% -13.2%

Ibovespa Valuing 5.5% -15.8% 5.6% -24.1%

*Ajusted by earnings.

BM&F BOVESPA (spot market) - LIGT3

39

The chart below shows the performance of Light’s stock from December 28, 2012 to May 14, 2014.

Dividends

Light’s dividend payment policy establishes a minimum payout equivalent to 50% of adjusted net income, calculated

in compliance with article 189 of Brazilian Corporate Law and pursuant to Brazilian accounting practices and the

regulations of the Brazilian Securities and Exchange Commission (CVM).

On April 24, 2014, the Annual Shareholders’ Meeting approved the proposal to distribute dividends in the amount of

thirty-two million, eighteen thousand, seven hundred and ninety-three reais and fifty-three centavos

(R$32,018,793.53) corresponding to the mandatory minimum dividends, and three hundred and thirty-two million,

eight hundred and nineteen thousand, two hundred and thirty-nine reais and eighty-one centavos

(R$332,819,239.81), related to net income for fiscal year 2013, to be paid by December 31, 2014, with the Board of

Directors being responsible for establishing the precise payment dates. The net amount per share is R$1.789,

without the retention of withholding tax, pursuant to Article 10 of Law 9249/95. Shares have been traded ex-

dividends as of April 25, 2014.

40

Dividends paid, dividend yield and payout

41

7. Recent Events

� On July 8, 2014, Authoritative Resolution 4734/2014 was issued, transferring the Lajes SHP concession from Light

Energia S.A. to SPE Lajes Energia S.A., a wholly owned Light Energia subsidiary.

� On July 18, 2014, the Company approved the contracting of a loan by Light SESA. totaling five hundred and eighty

million, fifty-six thousand and five hundred and forty-five reais (R$580,056,545.00) from the BNDES in order to

finance investments in 2013 and 2014 totaling R$1.2 billion, guaranteed by a suretyship from Light S.A. and the

fiduciary assignment of 2.30% of Light SESA’s net operating revenue.

� On July 24, 2014, Light S.A. sold its entire interest in CR Zongshen E-Power Fabricadora de Veículos S.A. (“E-

Power”), representing 20% of E-Power’s total capital, to CR Zongshen Fabricadora de Veículos S.A. (“CR

Zongshen”) for one million, ninety-six thousand, five hundred and eighty-nine reais and twelve centavos

(R$1.096.589.12), to be restated by the IGP-M general market price index, plus eight percent (8%) per year until

the effective payment date. As a result, the E-Power Shareholders’’ Agreement entered into between the

Company and CR Zongshen was annulled, with no remaining obligations for either signatory.

� On July 25, 2014, Renova announced a 60-day extension to the term for exercising pre-emptive rights in relation

to the capital increase approved in February 2014, governing the entry of Cemig GT into Renova’s controlling

block. As a result, the period for exercising pre-emptive rights, which would have expired on July 29, 2014,

pursuant to the Notice to Shareholders of March 31, 2014, will now close on September 29, 2014.

42

8. Disclosure Program

Forward-looking Statements

The information on the Company’s operations and its Management’s expectations regarding its future performance

was not reviewed by independent auditors.

Statements about future events are subject to risks and uncertainties. These statements are based on 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 of the Company's Board

of Directors and Officers. Exceptions 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 might or

Teleconference

Brazil: +55 (11) 2188 0155

USA: +1 (646) 843-6054

Other countries: +1 866 890 2584

Access code: Light

Schedule

08/14/2014, thursday, at 4:00 p.m. (Brasília Time) and at 3:00 p.m.

(Eastern Time), with simultaneous translation to English

Access conditions:

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

Conference Call - Dial number:

Contact e-mail Phone

Gustavo Werneck Souza gustavo.souza@light.com.br +55 21 2211-2560

Mariana da Silva Rocha mariana.rocha@light.com.br +55 21 2211-2814

Marcelle Pelajo marcelle.pelajo@light.com.br +55 21 2211-7392

Leonardo Dias Wanderley leonardo.wanderley@light.com.br +55 21 2211-2828

IR Team

43

might not occur. Future results and creation of value to shareholders might significantly differ from the ones

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.

44

EXHIBIT I

Selected Information per Company – R$ million

LIGHT SESA 2Q14 2Q13 Var. % 1H14 1H13 Var. %

Net Operating Revenue 1,652.8 1,569.9 5.3% 3,563.0 3,316.8 7.4%

Operating Expense (1,605.5) (1,473.5) 9.0% (3,334.2) (3,065.7) 8.8%

Other Operating Revenues/Expenses (1.2) (5.7) -79.5% (13.3) (12.9) 2.6%

Operating Result 46.2 90.7 -49.1% 215.5 238.2 -9.5%

EBITDA 132.3 174.5 -24.2% 387.1 402.6 -3.9%

Financial Result (96.5) (74.7) 29.1% (154.1) (194.7) -20.8%

Result before taxes and interest (50.3) 16.0 - 61.4 43.5 41.2%

Net Income (32.6) 13.3 - 41.2 30.9 33.4%

EBITDA Margin* 9.2% 12.5% -3,3 p.p. 12.2% 13.5% -1,3 p.p.

* Does not consider Construction Revenue

LIGHT ENERGIA 2Q14 2Q13 Var. % 1H14 1H13 Var. %

Net Operating Revenue 133.4 132.0 1.1% 344.6 277.3 24.3%

Operating Expense (55.9) (43.4) 28.9% (94.3) (81.5) 15.7%

Other Operating Revenues/Expenses (0.4) 0.2 - (0.4) 0.2 -

Operating Result 77.1 88.7 -13.1% 249.9 195.9 27.6%

Equity Pickup (2.5) (2.4) 7.7% (6.1) (4.0) 53.6%

EBITDA 88.0 100.1 -12.1% 270.8 219.4 23.4%

Financial Result (19.7) (21.0) -6.1% (42.6) (40.6) 4.9%

Result before taxes and interest 54.8 65.4 -16.2% 201.3 151.4 33.0%

Net Income 35.9 42.8 -16.0% 132.0 98.9 33.5%

EBITDA Margin 66.0% 75.9% -9,9 p.p. 78.6% 79.1% -0,5 p.p.

COMMERCIALIZATION AND SERVICES 2Q14 2Q13 Var. % 1H14 1H13 Var. %

Net Operating Revenue 214.9 152.9 40.5% 451.6 310.1 45.6%

Operating Expense (185.2) (148.7) 24.6% (404.4) (296.0) 36.6%

Other Operating Revenues/Expenses (7.1) - - (7.1) - -

Operating Result 22.6 4.2 431.9% 40.1 14.1 184.7%

Equity Pickup (0.0) 0.1 - (0.0) 0.1 -

EBITDA 23.9 4.4 449.3% 41.5 14.3 190.6%

Financial Result 4.1 (0.1) - 5.6 (0.1) -

Result before taxes and interest 26.7 4.2 529.6% 45.6 14.0 224.9%

Net Income 16.7 3.0 455.3% 29.3 9.4 209.9%

EBITDA Margin 11.1% 2.8% 8,3 p.p. 9.2% 4.6% 4,6 p.p.

45

EXHIBIT II

Selected Consolidated Financial Information* - R$ million

Consolidated - R$ MN 2Q14 2Q13 Var. % 1H14 1H13 Var. %

NET OPERATING REVENUE 1,815.8 1,755.1 3.5% 4,098.0 3,676.9 11.5%- - 0.0% - - 0.0%

OPERATING EXPENSE (1,673.4) (1,574.3) 6.3% (3,599.0) (3,234.8) 11.3%

PMSO (235.7) (238.8) -1.3% (461.9) (451.7) 2.3%

Personnel (86.0) (74.9) 14.7% (164.5) (156.3) 5.3%

Material (5.1) (3.1) 62.8% (19.5) (7.0) 179.0%

Outsourced Services (112.7) (123.0) -8.4% (211.9) (219.5) -3.4%

Others (32.0) (37.8) -15.2% (65.8) (68.9) -4.4%

Purchased Energy (1,099.6) (989.1) 11.2% (2,458.8) (2,131.2) 15.4%

Depreciation (101.0) (97.7) 3.4% (200.0) (192.1) 4.1%

Provisions (14.2) (66.6) -78.7% (79.8) (112.0) -28.8%

Construction Revenue (214.3) (175.6) 22.1% (377.8) (332.8) 13.5%

Other Operating Revenuess/Expenses (8.6) (6.5) 31.9% (20.7) (14.9) 39.5%

OPERATING RESULT 142.4 180.8 -21.2% 499.0 442.1 12.9%

EQUITY PICKUP (4.0) (0.5) 766.3% (6.8) (1.1) 510.2%

EBITDA (1) 239.3 277.9 -13.9% 692.3 633.1 9.3%

FINANCIAL RESULT (111.8) (95.5) 17.1% (190.6) (234.3) -18.7%

Financial Income 52.5 124.3 -57.7% 133.4 153.9 -13.3%

Financial Expenses (164.4) (219.8) -25.2% (324.0) (388.2) -16.5%

RESULT BEFORE TAXES AND INTEREST 26.5 84.8 -68.7% 301.6 206.7 46.0%

SOCIAL CONTRIBUTIONS & INCOME TAX (25.9) (40.1) -35.3% (101.1) (76.0) 33.0%

DEFERRED INCOME TAX 14.7 13.5 9.0% (4.8) 6.2 -176.8%

NET INCOME 15.3 58.2 -73.8% 195.8 136.9 43.1%

(1) EBITDA as of CVM Instruction 527/2012: Net Income + Social Contributions and Income Taxes + Net Financial Result +

Depreciation/Amortization

(*) 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.

46

EXHIBIT III

Consolidated Balance Sheet – R$ million

ASSETS 06/30/2014 12/31/2013

Current 3,516.8 3,495.8

Cash & Cash Equivalents 1,579.1 546.4

Marketable securities 14.8 1,244.0

Receivable Accounts 1,411.2 1,223.4

Inventories 37.4 29.7

Recoverable Taxes 144.0 161.0

Prepaid Expenses 16.5 15.8

Other Current Assets 313.9 275.5 -

Non-current 9,639.0 9,506.5

Receivable Accounts 227.7 209.4

Deferred Taxes 606.8 622.8

Concession financial assets 2,056.1 1,926.2

Others Non-current Assets 433.6 464.9

Investiments 652.5 642.2

Fixed Assets 1,651.6 1,678.7

Intangible 4,010.8 3,962.1 0.0 -

Total Assets 13,155.8 13,002.2 0 0

LIABILITIES 06/30/2014 12/31/201300/01/1900 0

Current 3,072.3 3,318.5

Suppliers 1,080.9 907.3

Fiscal obligations 177.4 198.6

Loans and Financing 581.4 591.5

Debentures 519.0 51.0

Others Obligations 220.7 1,408.6

Provisions 128.1 129.5

Dividends and interest on equity to be paid 364.8 32.0 0 -

Non-current 6,743.4 6,206.6

Loans and Financing 2,056.9 1,823.5

Debentures 3,666.1 3,349.3

Others Obligations 276.3 263.7

Deferred Taxes 219.3 226.4

Provisions 524.8 543.7 0 -

Shareholders' Equity 3,340.1 3,477.1

Realized Joint Stock 2,225.8 2,225.8

Profit Reserves 565.6 565.6

Additional Proposed Dividend - 332.8

Asset Valuation Adjustments 419.6 429.5

Other comprehensive income (76.6) 76.6-

Accumulated Profit/Loss of Exercise 205.7 - 0 -

Total Liabilities 13,155.8 13,002.2

47

EXHIBIT IV

Regulatory Assets and Liabilities

R$ Million jun/14 mar/14 dec/13 sep/13 jun/13 mar/13 dec/12 sep/12

TOTAL ASSET 501.7 361.4 428.7 627.6 653.0 500.6 365.7 262.7

TOTAL LIABILITIES (65.4) (45.5) (94.5) (381.2) (77.4) (44.3) (10.6) (45.6)

TOTAL DIFFERENCE 436.2 315.9 334.2 246.4 575.6 456.3 355.2 217.1

Net difference (quarter) 120.3 (18.3) 87.8 (329.2) 119.3 101.2 138.0 118.7

Net difference (YTD) 102.1 (18.3) (21.0) (108.8) 220.4 101.2 330.4 192.4

48

EXHIBIT V

Complementary Information – Consolidated Financial Information on a

Proportional Interest Basis

This information is complementary and is exclusively for comparative purposes, since it is not in accordance with

Brazilian accounting practices.

Consolidated - R$ MN RENOVA LIGHTGER EBL AXXIOM AMAZÔNIA

2nd QUARTER - 2014 21.86% 51% 33% 51% 25.50%

OPERATING REVENUE 2,732 12 4 0 7 - - 2,756

REVENUE DEDUCTIONS (916) (0) (0) - (1) - - (918)

NET REVENUE 1,816 12 4 0 7 - - 1,838

OPERATING EXPENSE (1,673) (8) (3) (0) (8) - - (1,692)

OPERATING RESULT 142 3 1 (0) (1) - - 146

EQUITY PICKUP (4) (1) - - - - 1 (4)

EBITDA 239 6 3 (0) (1) - - 247

FINANCIAL RESULT (112) (1) (1) 0 (0) (0) - (114)

RESULT BEFORE TAXES AND INTEREST 27 1 1 (0) (1) (0) - 26

SOCIAL CONTRIBUTIONS &

DIFERRED/INCOME TAX(11) (1) (0) (0) (0) - - (12)

NET INCOME 15 0 0 (0) (1) (0) 1 15

REPORTED

CONSOLIDATEELIMINATION TOTAL

Consolidated - R$ MN RENOVA LIGHTGER EBL AXXIOM AMAZÔNIA

1st HALF 2014 21.86% 51% 33% 51% 25.50%

OPERATING REVENUE 6,123 24 9 0 13 - - 6,169

REVENUE DEDUCTIONS (2,025) (1) (0) (0) (1) - - (2,027)

NET REVENUE 4,098 23 8 0 12 - - 4,142

OPERATING EXPENSE (3,599) (17) 8 (0) (13) - - (3,621)

OPERATING RESULT 499 6 17 (0) (1) - - 521

EQUITY PICKUP (7) (1) - - - - (15) (23)

EBITDA 692 13 17 (0) (1) - - 721

FINANCIAL RESULT (191) (5) - 0 (0) (1) - (197)

RESULT BEFORE TAXES AND INTEREST 302 (0) 17 (0) (1) (1) - 316

SOCIAL CONTRIBUTIONS &

DIFERRED/INCOME TAX(106) (1) 2 (0) (0) - - (106)

NET INCOME 196 (2) 18 (0) (1) (1) (15) 196

REPORTED

CONSOLIDATEELIMINATION TOTAL

49

EXHIBIT VI

The Company’s results for the second quarters and first half of 2013 were reclassified due to Management’s decision

to present PIS and COFINS tax credits on purchased energy as a reduction factor for purchased energy costs instead

presenting them as a reduction in PIS and COFINS on revenue. The purpose of this reclassification was to align this

presentation criterion with best corporate practices in the same sector.

The consolidated financial information for the second quarter of 2014 is in accordance with the new practice>

However, for comparison purposes, the adjustments are presented below:

Consolidated Income Statements- R$ MNPublished

2Q13Adjustments

Reclassified

2Q13

NET OPERATING REVENUE 1,846.5 (91.4) 1,755.1

OPERATING EXPENSE (1,665.7) 91.4 (1,574.3)

Personnel (74.9) - (74.9)

Material (3.1) - (3.1)

Outsourced Services (123.0) - (123.0)

Purchased Energy (1,080.6) 91.4 (989.1)

Depreciation (97.7) - (97.7)

Provisions (66.6) - (66.6)

Construction Revenue (175.6) - (175.6)

Other Operating Revenuess/Expenses (6.5) - (6.5)

Others (37.8) - (37.8)

OPERATING RESULT 180.8 - 180.8

EQUITY PICKUP (0.5) - (0.5)

EBITDA (1) 277.9 - 277.9

FINANCIAL RESULT (95.5) - (95.5)

RESULT BEFORE TAXES AND INTEREST 84.8 - 84.8

SOCIAL CONTRIBUTIONS & INCOME TAX (40.1) - (40.1)

DEFERRED INCOME TAX 13.5 - 13.5

NET INCOME 58.2 - 58.2

50

Consolidated Income Statements- R$ MNPublished

1H13Adjustments

Reclassified

1H13

NET OPERATING REVENUE 3,864.8 (188.0) 3,676.9

OPERATING EXPENSE (3,422.7) 188.0 (3,234.8)

Personnel (156.3) - (156.3)

Material (7.0) - (7.0)

Outsourced Services (219.5) - (219.5)

Purchased Energy (2,319.2) 188.0 (2,131.2)

Depreciation (192.1) - (192.1)

Provisions (112.0) - (112.0)

Construction Revenue (332.8) - (332.8)

Other Operating Revenuess/Expenses (14.9) - (14.9)

Others (68.9) - (68.9)

OPERATING RESULT 442.1 - 442.1

EQUITY PICKUP (1.1) - (1.1)

EBITDA (1) 633.1 - 633.1

FINANCIAL RESULT (234.3) - (234.3)

RESULT BEFORE TAXES AND INTEREST 206.7 - 206.7

SOCIAL CONTRIBUTIONS & INCOME TAX (76.0) - (76.0)

DEFERRED INCOME TAX 6.2 - 6.2

NET INCOME 136.9 - 136.9

51

Cash Flow - R$ MNPublished

2Q13Adjustments

Reclassified

2Q13

Cash in the Beginning of the Period (1) 435.9 - 435.9

Net Income 58.2 - 58.2

Social Contributions & Income Tax 26.6 - 26.6

Net Income before Social Contributions & Income Tax 84.8 - 84.8

Provision for Delinquency 48.4 - 48.4

Depreciation and Amortization 97.7 - 97.7 Loss (gain) on intangible sales / Residual value of

disposals fixed asset7.0 - 7.0

Losses (gains) on financing exchange activities 72.3 - 72.3

Net Interests and Monetary Variations 86.4 - 86.4

Braslight 30.5 - 30.5

Atualization / provisions reversal 21.0 - 21.0

Equity Pikup 0.5 - 0.5

Financial Assets of the Concession (6.7) - (6.7)

Others (76.9) - (76.9)

Subtotal 365.0 - 365.0

Working Capital 114.1 - 114.1

Contingencies (22.2) - (22.2)

Deferred Taxes 36.5 - 36.5

Braslight (29.1) 28.3 (0.9)

CDE fund - - -

Others (25.2) - (25.2)

Taxes Paid (13.3) - (13.3)

Interest Paid (98.0) - (98.0)

Cash from Operating Activities (2) 327.8 28.3 356.0

Finance Obtained 2,158.4 - 2,158.4

Dividends (74.8) - (74.8)

Contractual debt amortization with the pension plan (595.6) - (595.6)

Loans and financing payments - (28.3) (28.3)

Financing Activities (3) 1,488.0 (28.3) 1,459.7

Fixed Assets/Intangible/Financial Assets (186.0) - (186.0)

Inflow/Acquisitions on Investment (28.3) - (28.3)

Financial Investments - - -

Investment Activities (4) (214.4) - (214.4)

Cash in the End of the Period (1+2+3+4) 2,037.3 - 2,037.3

Cash Generation (2+3+4) 1,601.4 - 1,601.4

52

Cash Flow - R$ MNPublished

1H13Adjustments

Reclassified

1H13

Cash in the Beginning of the Period (1) 230.4 - 230.4

Net Income 136.9 - 136.9

Social Contributions & Income Tax 69.8 - 69.8

Net Income before Social Contributions & Income Tax 206.7 - 206.7

Provision for Delinquency 77.4 - 77.4

Depreciation and Amortization 192.1 - 192.1

Loss (gain) on intangible sales / Residual value of

disposals fixed asset8.9 - 8.9

Losses (gains) on financing exchange activities 62.9 - 62.9

Net Interests and Monetary Variations 171.8 - 171.8

Braslight 69.9 - 69.9

Atualization / provisions reversal 55.8 - 55.8

Equity Pikup 1.1 - 1.1

Financial Assets of the Concession (13.1) - (13.1)

Dilution of Renova's Gain - - -

Others (54.5) - (54.5)

Subtotal 779.1 - 779.1

Working Capital 197.0 - 197.0

Contingencies (37.8) - (37.8)

Deferred Taxes (8.1) - (8.1)

Braslight (57.8) 56.6 (1.2)

CDE fund - - -

Others (114.1) - (114.1)

Taxes Paid (80.4) - (80.4)

Interest Paid (147.3) - (147.3)

Cash from Operating Activities (2) 530.5 56.6 587.1

Finance Obtained 2,433.5 - 2,433.5

Dividends (74.8) - (74.8)

Loans and financing payments (658.1) - (658.1)

Contractual debt amortization with the pension plan - (56.6) (56.6)

Financing Activities (3) 1,700.6 (56.6) 1,644.0

Disposal of Assets/Intangible (372.6) - (372.6)

Fixed Assets/Intangible/Financial Assets (59.6) - (59.6)

Inflow/Acquisitions on Investment 8.0 - 8.0

Investment Activities (4) (424.2) - (424.2)

Cash in the End of the Period (1+2+3+4) 2,037.3 - 2,037.3

Cash Generation (2+3+4) 1,807.0 - 1,807.0

53

ASSETS 6.30.2014 12.31.2013 6.30.2014 12.31.2013

Cash and cash equivalents 4 379 26,802 1,579,051 546,429

Marketable securities 5 - - 14,816 1,244,000

Consumers, concessionaires, permissionaires and clients 6 - - 1,411,187 1,223,413

Inventories - - 37,380 29,662

Taxes and contributions 7 - - 112,241 105,821

Income tax and social contribution 7 126 6,442 31,736 55,140

Prepaid expenses 106 270 16,496 15,800

Dividends and interest on equity receivable 11 373,100 36,153 225 234

Receivables from services rendered 141 143 42,620 29,811

Receivables from swap transactions 32 - - 22,934 31,150

Other receivables 10 4,561 6,146 248,149 214,296

TOTAL CURRENT ASSETS 378,413 75,956 3,516,835 3,495,756

Consumers, concessionaires, permissionaires and clients 6 - - 227,677 209,414

Taxes and contributions 7 - - 99,675 88,777

Deferred taxes 8 - - 606,751 622,835

Concessions' financial assets 9 - - 2,056,118 1,926,226

Judicial deposits 19 312 305 243,792 263,316

Receivables from swap transactions 32 - - 87,367 110,064

Other receivables 10 - - 2,786 2,786

Investments 11 3,330,649 3,449,076 652,475 642,203

Property, plant and equipment 12 672 672 1,651,573 1,678,722

Intangible assets 13 - - 4,010,775 3,962,108

TOTAL NON-CURRENT ASSETS 3,331,633 3,450,053 9,638,989 9,506,451

TOTAL ASSETS 3,710,046 3,526,009 13,155,824 13,002,207

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

LIGHT S.A.

(In thousands of reais)

Notes

Consolidated

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2014 AND DECEMBER 31, 2013

Parent Company

54

LIABILITIES6.30.2014 12.31.2013 6.30.2014 12.31.2013

Suppliers 14 127 295 1,080,876 907,262

Taxes and contributions 15 69 11,048 107,611 115,102

Income tax and social contribution 15 1 2 69,775 83,516

Loans and financing 16 - - 581,417 591,470

Debentures 17 - - 519,014 51,030

Payable swap transactions 32 - - 19,387 -

Dividends and interest on equity payable 24 364,838 32,019 364,838 32,019

Estimated liabilities 882 1,543 61,615 66,576

Regulatory charges 18 - - 66,486 62,884

Post-employment benefits 21 1 3 131 1,224,736

Other payables 22 3,117 3,059 201,163 183,867

TOTAL CURRENT LIABILITIES 369,035 47,969 3,072,313 3,318,462

Loans and financing 16 - - 2,056,938 1,823,497

Debentures 17 - - 3,666,091 3,349,314

Payable swap transactions 32 - - 16,360 -

Taxes and contributions 15 - - 183,867 187,640

Deferred taxes 8 - - 219,253 226,410

Provisions 19 - - 524,798 543,655

Other payables 22 901 901 76,094 76,090

TOTAL NON-CURRENT LIABILITIES 901 901 6,743,401 6,206,606

EQUITY

Capital stock 24 2,225,822 2,225,822 2,225,822 2,225,822

Profit reserves 565,614 565,614 565,614 565,614

Proposed additional dividends - 332,819 - 332,819

Equity valuation adjustments 419,633 429,498 419,633 429,498

Other comprehensive income (76,614) (76,614) (76,614) (76,614)

Retained earnings 205,655 - 205,655 -

TOTAL EQUITY 3,340,110 3,477,139 3,340,110 3,477,139

TOTAL LIABILITIES AND EQUITY 3,710,046 3,526,009 13,155,824 13,002,207

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

LIGHT S.A.

Notes

Parent Company Consolidated

(In thousands of reais)

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2014 AND DECEMBER 31, 2013

55

04.01.2014 to

06.30.2014

01.01.2014 to

06.30.2014

04.01.2013 to

06.30.2013

01.01.2013 to

06.30.2013

04.01.2014 to

06.30.2014

01.01.2014 to

06.30.2014

04.01.2013 to

06.30.2013

Restated

01.01.2013 to

06.30.2013

Restated

NET REVENUE 26 - - - - 1,815,791 4,098,007 1,755,061 3,676,864

COST OF OPERATIONS 28 - - - - (1,516,178) (3,239,742) (1,370,617) (2,862,996)

GROSS PROFIT - - - - 299,613 858,265 384,444 813,868

OPERATING EXPENSES 28 (3,378) (6,003) (2,600) (3,895) (157,231) (359,258) (203,690) (371,770)

Selling expenses - - - - (64,308) (115,349) (77,785) (132,156)

General and administrative expenses (3,378) (6,003) (2,600) (3,895) (84,304) (223,172) (119,370) (224,747)

Other revenues - - - - 91 170 - -

Other expenses - - - - (8,710) (20,907) (6,535) (14,867)

EQUITY IN THE EARNINGS OF SUBSIDIARIES 11 18,451 201,394 60,558 139,768 (4,037) (6,755) (466) (1,107)

EARNINGS BEFORE THE FINANCIAL RESULT AND TAXES 15,073 195,391 57,958 135,873 138,345 492,252 180,288 440,991

FINANCIAL RESULT 30 201 399 254 984 (111,842) (190,627) (95,486) (234,339)

Revenue 203 509 255 996 66,795 163,831 130,937 146,975

Expenses (2) (110) (1) (12) (178,637) (354,458) (226,423) (381,314)

RESULT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 15,274 195,790 58,212 136,857 26,503 301,625 84,802 206,652

Current income tax and social contribution 31 - - - - (21,758) (96,908) (33,286) (72,828)

Deferred income tax and social contribution 31 - - - - 10,529 (8,927) 6,696 3,033

PROFIT (LOSS) FOR THE PERIOD 15,274 195,790 58,212 136,857 15,274 195,790 58,212 136,857

Attributed to the controlling shareholders 15,274 195,790 58,212 136,857 15,274 195,790 58,212 136,857

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE (R$ / Share) 25 0.075 0.960 0.285 0.671 0.075 0.960 0.285 0.671

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

STATEMENT OF INCOME

LIGHT S.A.

Notes

Parent Company Consolidated

(In thousands of reais)

QUARTERS ENDED JUNE 30, 2014 AND 2013

04.01.2014 to

06.30.2014

01.01.2014 to

06.30.2014

04.01.2013 to

06.30.2013

01.01.2013 to

06.30.2013

04.01.2014 to

06.30.2014

01.01.2014 to

06.30.2014

04.01.2013 to

06.30.2013

01.01.2013 to

06.30.2013

Profit (loss) for the period 15,274 195,790 58,212 136,857 15,274 195,790 58,212 136,857

Other comprehensive income not reclassified to profit or in subsequent periods

Gains (losses) on actuarial liabilities, net of tax effects - - - - - - - -

TOTAL COMPREHENSIVE INCOME 15,274 195,790 58,212 136,857 15,274 195,790 58,212 136,857

Attributed to the controlling shareholders 15,274 195,790 58,212 136,857 15,274 195,790 58,212 136,857

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

Consolidated

STATEMENTS OF COMPREHENSIVE INCOME

LIGHT S.A.

Parent Company

QUARTERS ENDED JUNE 30, 2014 AND 2013

(In thousands of reais)

56

CAPITAL

STOCK

LEGAL

RESERVE

RETAINED

EARNINGS

PROPOSED

ADDITIONAL

DIVIDENDS

EQUITY

VALUATION

ADJUSTMENTS

OTHER

COMPREHENSIVE

INCOME

RETAINED EARNINGS

(ACCUMULATED

LOSSES)

TOTAL

BALANCE ON DECEMBER 31, 2012 2,225,822 197,007 59,528 91,770 451,556 (171,997) 171,997 3,025,683

Total comprehensive income:

Profit for the period - - - - - - 136,857 136,857

Other comprehensive income not reclassified into income in subsequent periods - - - - - - - -

Realization of equity valuation adjustment - - - - (10,289) - 10,289 -

Dividends resolved at the Annual Shareholders' Meeting (R$0.45 / share) - - - (91,770) - - - (91,770)

BALANCE ON JUNE 30, 2013 2,225,822 197,007 59,528 - 441,267 (171,997) 319,143 3,070,770

CAPITAL

STOCK

LEGAL

RESERVE

RETAINED

EARNINGS

PROPOSED

ADDITIONAL

DIVIDENDS

EQUITY

VALUATION

ADJUSTMENTS

OTHER

COMPREHENSIVE

INCOME

RETAINED EARNINGS

(ACCUMULATED

LOSSES)

TOTAL

BALANCE ON DECEMBER 31, 2013 2,225,822 226,374 339,240 332,819 429,498 (76,614) - 3,477,139

Total comprehensive income:

Profit (loss) for the period - - - - - - 195,790 195,790

Other comprehensive income not reclassified into income in subsequent periods - - - - - - - -

Realization of equity valuation adjustment - - - - (9,865) - 9,865 -

Dividends resolved at the Annual Shareholders' Meeting (R$1.63 / share) - - - (332,819) - - - (332,819)

BALANCE ON JUNE 30, 2014 2,225,822 226,374 339,240 - 419,633 (76,614) 205,655 3,340,110

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

PROFIT RESERVES

LIGHT S.A.

STATEMENTS OF CHANGES IN EQUITY - PARENT COMPANY AND CONSOLIDATED

QUARTERS ENDED JUNE 30, 2014 AND 2013

(In thousands of reais)

PROFIT RESERVES

57

01.01.2014 to

06.30.2014

01.01.2013 a to

06.30.2013

01.01.2014 to

06.30.2014

01.01.2013 to

06.30.2013

Restated

Net cash generated by (used in) operating activities (9,298) 55,419 300,986 587,084

Cash generated by (used in) operations (5,604) (2,911) 849,326 779,069

Earnings before income tax and social contribution 195,790 136,857 301,625 206,652

Allowance for doubtful accounts - - 61,371 77,446

Depreciation and amortization - - 200,002 192,095

Loss (gain) from the sale of intangible asset /property, plant and equipment - - 2,963 8,905

Foreign exchange and monetary losses (gains) from financial activities - - (48,967) 62,892

Provisions for contingencies and judicial deposits /restatement - - 24,139 55,840

Adjustment to present value and prepayment of receivables - - (3,401) (938)

Expenses with interest on loans, financing and debentures - - 251,576 172,780

Charges and monetary variation of post-employment obligations - - 3,539 69,856

Swap variation - - 94,530 (54,472)

Equity in the earnings of subsidiaries (201,394) (139,768) 6,755 1,107

Remuneration of the concession's financial assets - - (44,806) (13,094)

(Increase)/Decrease in Assets and Liabilities (3,694) 58,330 (548,340) (191,985)

Marketable securities - - 4,518 (627)

Consumers, concessionaires and permissionaires - - (264,007) 251,039

Dividends and interest on equity received - 57,480 - -

Taxes and contributions 6,316 1,978 13,243 (97,791)

Inventories - - (7,718) (3,196)

Receivables from services rendered 2 8 (12,809) 5,924

Prepaid expenses 164 125 (696) (12,867)

Escrow deposits (7) (14) 12,120 (9,979)

Other assets 1,585 1,581 (33,853) (120,456)

Suppliers (168) (362) 151,570 (47,388)

Estimated liabilities (661) 128 (4,961) 4,122

Taxes and contributions (10,980) (1,565) (17,802) 89,700

Regulatory charges - - 3,602 (50,322)

Provisions - - (35,592) (37,846)

Post-employment benefits (2) - (3,478) (1,226)

Other liabilities 57 (1,029) (10,505) 66,619

Interests paid - - (230,704) (147,250)

Income tax and social contributions paid - - (111,268) (80,441)

Net cash generated by (used in) investing activities (17,125) (24,566) 936,576 (424,165)

Acquisition of property, plant and equipment - - (13,384) (49,442)

Acquisition of intangible assets - - (257,581) (323,110)

Investment acquisitions (17,125) (24,566) (17,125) (59,579)

Financial investments - - 1,224,666 7,966

Net cash generated by (used in) financing activities - (74,792) (204,940) 1,644,037

Dividends and interest on equity paid - (74,792) - (74,792)

Loans, financing and debentures - - 1,172,214 2,433,523

Amortization of loans, financing and debentures - - (152,488) (658,136)

Amortization of contractual debt with pension plan - - (1,224,666) (56,558)

Increase (decrease) in cash and cash equivalents (26,423) (43,939) 1,032,622 1,806,956

Cash and cash equivalents at the beginning of the period 26,802 45,469 546,429 230,356

Cash and cash equivalents at the end of the period 379 1,530 1,579,051 2,037,312

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

Parent Company Consolidated

LIGHT S.A.

STATEMENTS OF CASH FLOWS

QUARTERS ENDED JUNE 30, 2014 AND 2013

(In thousands of reais)

58

01.01.2014 to

06.30.2014

01.01.2013 a to

06.30.2013

01.01.2014 to

06.30.2014

01.01.2013 to

06.30.2013

Restated

Revenues - - 6,069,653 5,324,308

Sale of goods, products and services - - 5,745,065 5,068,905

Revenue related to the construction of own assets - - 385,959 332,849

Allowance/Reversal of allowance for doubtful accounts - - (61,371) (77,446)

Inputs acquired from third parties (3,275) (1,562) (3,078,302) (2,716,950)

Cost of products, goods and services sold - - (2,458,789) (2,131,228)

Material, energy, outsourced services and other (3,275) (1,562) (619,513) (585,722)

Gross value added (3,275) (1,562) 2,991,351 2,607,358

Retentions - - (200,002) (192,095)

Depreciation and amortization - - (200,002) (192,095)

Net value added produced (3,275) (1,562) 2,791,349 2,415,263

Value added received in transfer 201,903 140,764 157,076 145,868

Equity in the earnings of subsidiaries 201,394 139,768 (6,755) (1,107)

Financial revenues 509 996 163,831 146,975

Total value added to distribute 198,628 139,202 2,948,425 2,561,131

Distribution of value added 198,628 139,202 2,948,425 2,561,131

Personnel 2,507 2,144 176,455 158,265

Direct remuneration 2,322 2,008 135,517 118,246

Benefits 123 82 27,130 26,233

Government Severance Fund for Employees (FGTS) 62 54 12,515 11,229

Other - - 1,293 2,557

Taxes, fees and contributions 221 189 2,163,880 1,836,219

Federal 221 189 871,290 666,632

State - - 1,286,950 1,165,295

Municipal - - 5,640 4,292

Value distributed to providers of capital 110 12 412,300 429,790

Interest 110 12 370,931 387,182

Rental - - 31,317 30,636

Other - - 10,052 11,972

Value distributed to shareholders 195,790 136,857 195,790 136,857

Retained earnings 195,790 136,857 195,790 136,857

The notes are an integral part of the financial statements.

Convenience translation into English from the original previously issued in Portuguese

ConsolidatedParent Company

QUARTERS ENDED JUNE 30, 2014 AND 2013

STATEMENTS OF VALUE ADDED

LIGHT S.A.

(In thousands of reais)

59

CONVENIENCE TRANSLATION INTO ENGLISH FROM THE ORIGINAL PREVIOUSLY ISSUED

IN PORTUGUESE

60

NOTES TO THE PARENT COMPANY AND CONSOLIDATED INTERIM FINANCIAL INFORMATION THE QUARTER ENDED JUNE 30, 2014

(In thousands of Brazilian reais – R$, unless stated otherwise)

1. OPERATIONS

The corporate purpose of Light S.A. (Company or “Light”), a publicly-held company

headquartered in the City of Rio de Janeiro/RJ - Brazil, is to hold equity interests in

other companies, as partner or shareholder, and the direct or indirect exploration, as

applicable, of electric power services, including electric power generation,

transmission, sale and distribution systems, as well as other related services.

The Company is listed in the New Market (Novo Mercado) segment of BM&FBOVESPA

Securities, Commodities and Futures Exchange (BM&FBOVESPA), under the ticker

LIGT3, and in the U.S. over-the-counter (OTC) market, under the ticker LGSXY.

2. GROUP’S ENTITIES

a) Direct Subsidiaries

Light Serviços de Eletricidade S.A. (Light SESA – 100%) – a publicly-held corporation,

headquartered in the city and state of Rio de Janeiro, engaged in the distribution of

electric power, with a concession area comprising 31 cities in the state of Rio de

Janeiro, including its capital.

Light Energia S.A. - (Light Energia – 100%) – a publicly-held corporation,

headquartered in the city and state of Rio de Janeiro, whose main activities are to (a)

study, plan, construct, operate and explore systems of electric power generation,

transmission, sales, and related services that have been legally granted or that may be

granted or authorized to it or to companies in which it holds or may come to hold a

controlling interest; (b) to hold interests in other companies as a partner, shareholder

or quotaholder. It comprises the Pereira Passos, Nilo Peçanha, Ilha dos Pombos, Santa

61

Branca and Fontes Novas plants, with a total installed capacity of 855 MW. Light

Energia holds interest in the following subsidiaries and jointly-owned subsidiaries:

• Central Eólica São Judas Tadeu Ltda. (São Judas Tadeu – 100%) - a company at

the pre-operational stage whose main activity is the generation and sale of

electric power through a wind powerplant located in the state of Ceará, with 18

MW nominal power.

• Central Eólica Fontainha Ltda. (Fontainha – 100%) – a company at the pre-

operational stage whose main activity is the generation and sale of electric

power through a wind powerplant located in the state of Ceará, with 16 MW

nominal power.

• Lajes Energia S.A (Lajes Energia – 100%) – a privately-held corporation

headquartered in the city of Piraí, state of Rio de Janeiro, whose main activity is

to analyze the technical and economic feasibility, to prepare projects,

implement, operate, maintain and commercially explore the PCH Lajes, with

nominal capacity of 17 MW. The concession has already been transferred from

Light Energia to Lajes Energia.

• Renova Energia S.A. (Renova Energia - 21.9%, jointly controlled) – a publicly-

held company whose main activity is the generation of electric power through

renewable alternative sources, such as small hydroelectric powerplants (PCHs),

and wind and solar powerplants. Renova Energia holds direct or indirect

interests amounting 2,291.4 MW contracted, 484.6 MW of which in operation

or able to operate. Renova Energia is jointly-controlled by Light Energia (21.9%)

and RR Participações S.A. (21.9% interest in the controlling block). The

companies in which Renova Energia holds interests are listed below:

62

Enerbras Centrais Elétricas S.A. (d) Energética Serra da Prata S.A. (i) Renova PCH Ltda. (d)

Centrais Eólicas Planaltina S.A. (i) Centrais Eólicas Rio Verde S.A. (i) Chipley SP Participações S.A. (d)

Centrais Eólicas Caetité Ltda. (i) Centrais Eólicas Guirapá S.A. (i) Centrais Eólicas Espigão Ltda. (i)

Nova Renova Energia S.A. (d) Centrais Eólicas Nossa Senhora Conceição S.A. (i) Centrais Eólicas Pelourinho Ltda. (i)

Bahia Eólica Participações S.A. (i) Centrais Eólicas Guanambi S.A. (i) Centrais Eólicas Pilões Ltda. (i)

Centrais Eólicas Pindaí S.A. (i) Centrais Eólicas Porto Seguro S.A. (i) Centrais Eólicas São Salvador Ltda. (d)

Centrais Eólicas Igaporã S.A. (i) Centrais Eólicas Serra do Salto S.A. (i) Centrais Elétricas Morrão Ltda. (i)

Centrais Eólicas Licínio de Almeida S.A. (i) Renova Eólica Participações S.A. (i) Centrais Elétricas Seraíma Ltda. (i)

Centrais Eólicas Candiba S.A. (i) Centrais Elétricas Borgo Ltda. (i) Centrais Elétricas Tanque Ltda. (i)

Centrais Eólicas Ilhéus S.A. (i) Centrais Elétricas Dourados Ltda. (i) Centrais Eólicas dos Araças Ltda. (i)

Salvador Eólica Participações S.A. (i) Centrais Elétricas Maron Ltda. (i) Centrais Eólicas da Prata Ltda. (i)

Centrais Eólicas Alvorada S.A. (i) Centrais Elétricas Serra do Espinhaço Ltda. (i) Centrais Eólicas Ventos do Nordeste Ltda. (i)

Centrais Eólicas Pajeú do Vento S.A. (i) Centrais Eólicas Ametista Ltda. (i) Centrais Elétricas Botuquara Ltda. (d)

Centrais Eólicas Arapuã Ltda. (d) Centrais Elétricas Cedro Ltda. (d) Centrais Elétricas Itaparica Ltda. (d)

Brasil PCH S.A (i) Centrais Elétricas Riacho de Santana Ltda. (d) Centrais Elétricas Conquista Ltda. (d)

Renova Comercializadora de Energia S.A (d) Centrais Eólicas Lençois Ltda. (d) Centrais Elétricas Santana Ltda. (d)

Centrais Coxilha Alta Ltda. (d) Centrais Eólicas Itapuã I Ltda (d) Centrais Eólicas Recôncavo I Ltda. (d)

Centrais Eólicas Itapuã III Ltda (d) Centrais Eólicas Itapuã IV Ltda (d) Centrais Eólicas Itapuã II Ltda (d)

Centrais Eólicas Itapuã VI Ltda (d) Centrais Eólicas Itapuã VII Ltda (d) Centrais Eólicas Itapuã V Ltda (d)

Centrais Eólicas Itapuã IX Ltda (d) Centrais Eólicas Itapuã X Ltda (d) Centrais Eólicas Itapuã VIII Ltda (d)

Centrais Eólicas Itapuã XII Ltda (d) Centrais Eólicas Itapuã XIII Ltda (d) Centrais Eólicas Itapuã XI Ltda (d)

Centrais Eólicas Itapuã XV Ltda (d) Centrais Eólicas Itapuã XVI Ltda (d) Centrais Eólicas Itapuã XIV Ltda (d)

Centrais Eólicas Itapuã XVIII Ltda (d) Centrais Eólicas Itapuã XIX Ltda (d) Centrais Eólicas Itapuã XVII Ltda (d)

Centrais Eólicas Itapuã XXI Ltda (d) Renovapar S.A (d) Centrais Eólicas Itapuã XX Ltda (d)

Centrais Eólicas Bela Vista VIII Ltda (d) Centrais Eólicas Bela Vista XII Ltda (d) Centrais Eólicas Bela Vista XIII Ltda (d)

Centrais Eólicas Bela Vista XIV Ltda (d) Centrais Eólicas Bela Vista XV Ltda (d) Centrais Eólicas Bela Vista XVI Ltda (d)

Centrais Eólicas Bela Vista XVII Ltda (d) Centrais Eólicas Bela Vista XVIII Ltda (d) Centrais Eólicas Bela Vista XIX Ltda (d)

Centrais Eólicas Bela Vista XX Ltda (d) Centrais Eólicas Bela Vista V Ltda (d) Centrais Eólicas Bela Vista VI Ltda (d)

Centrais Eólicas Bela Vista VII Ltda (d) Centrais Eólicas Bela Vista X Ltda (d) Centrais Eólicas Bela Vista XI Ltda (d)

Centrais Eólicas Bela Vista I Ltda (d) Centrais Eólicas Bela Vista II Ltda (d) Centrais Eólicas Bela Vista III Ltda (d)

Centrais Eólicas Bela Vista IV Ltda (d) Centrais Eólicas Bela Vista IX Ltda (d) Centrais Eólicas Umburanas 1 Ltda (d)

Centrais Eólicas Umburanas 2 Ltda (d) Centrais Eólicas Umburanas 3 Ltda (d) Centrais Eólicas Umburanas 4 Ltda (d)

Centrais Eólicas Umburanas 5 Ltda (d) Centrais Eólicas Umburanas 6 Ltda (d) Centrais Eólicas Umburanas 7 Ltda (d)

Centrais Eólicas Umburanas 8 Ltda (d) Centrais Eólicas Umburanas 9 Ltda (d) Centrais Eólicas Umburanas 10 Ltda (d)

Centrais Eólicas Umburanas 11 Ltda (d) Centrais Eólicas Umburanas 12 Ltda (d) Centrais Eólicas Umburanas 13 Ltda (d)

Centrais Eólicas Umburanas 14 Ltda (d) Centrais Eólicas Umburanas 15 Ltda (d) Centrais Eólicas Umburanas 16 Ltda (d)

Centrais Eólicas Umburanas 17 Ltda (d) Centrais Eólicas Umburanas 18 Ltda (d)

Interest - RENOVA ENERGIA

(d)

Direct subsidiary of Renova (i)

Indirect subsidiary of Renova

The indirect interest held in Chipley is 13.1%, in Brasil PCH is 6.7%, in Renova

PCH Ltda., Nova Renova Energia S.A., Centrais Elétricas Botuquara Ltda. and

Centrais Elétricas Itaparica Ltda. is 21.7%, while in other companies is 21.9%.

• Guanhães Energia S.A. (Guanhães Energia - 51%, jointly controlled) – a

privately-held corporation in the pre-operational stage headquartered in the

city of Belo Horizonte/MG, created with the purpose of implementing and

exploring four small hydroelectric powerplants (PCHs) located in the state of

Minas Gerais, with total installed capacity of 44.80 MW. The first PCH is

63

expected to start operating in November 2014, and the last one in April 2015.

The company is a jointly controlledof Light Energia (51%) and Cemig Geração e

Transmissão S.A. - Cemig GT (49%).

Light Esco Prestação de Serviços S.A. - (Light Esco – 100%) – a privately-held

corporation headquartered in the city and state of Rio de Janeiro, whose main activity

is the purchase, sale, import, export of electric power, thermal power, gas and

industrial utilities, and provision of advisory services in the energy sector. The company

is a member of the Maracanã Solar consortium, which manages the photovoltaic plant

installed on the top of the Maracanã stadium (51%). EDF Consultoria em Projetos de

Geração de Energia Ltda holds a 49% interest in this consortium. Light Esco was

granted authorization from ANEEL to become an independent producer of electric

power. Light Esco also holds interests in the following jointly controlled:

• EBL Companhia de Eficiência Energética S.A. (EBL – 33.3%, jointly controlled) – a

company engaged in providing energy efficiency solutions and services and

rental of equipment and facilities at units owned or rented by Telemar Norte

Leste S.A., jointly-owned by Light Esco (33.3%), Ecoluz S.A. (33.4%) and

Petrobrás Distribuidora S.A. (33.3%).

Lightcom Comercializadora de Energia S.A. (Lightcom – 100%) – a privately-held

corporation headquartered in the city and state of São Paulo, engaged in the purchase,

sale, import, export and provision of advisory services in the energy sector.

Itaocara Energia Ltda. - (Itaocara Energia – 100%) – a company in the pre-operational

stage, primarily engaged in the design, construction, installation, operation and

exploration of electric power generation plants. It holds interest in the UHE Itaocara

consortium for the exploration of the Itaocara Hydroelectric Powerplant (51%). Cemig

Geração e Transmissão S.A. - Cemig GT has a 49% interest. On November 26, 2013,

Concession Agreement 12/2001-ANEEL, which governs the implementation and

64

exploration of the Itaocara Hydroelectric Powerplant, was terminated, as detailed in

note 11.

Light Soluções em Eletricidade Ltda (Light Soluções - 100%) – a limited liability company

whose main activity is to provide services to low-voltage clients, including the

assembly, remodeling and maintenance of facilities in general.

Instituto Light para o Desenvolvimento Urbano e Social (Light Institute - 100%) – a non-

profit private company, engaged in participating in social and cultural projects, focused

on the cities’ social and economic development, affirming the Company’s ability to be

socially responsible.

65

b) Jointly-controlled entities

Lightger S.A. (Lightger) – a privately-held corporation whose purpose is to participate

in auctions for concessions, authorizations and permissions for new electric power

plants. The Paracambi small hydroelectric powerplant (PHC) began operating in the

third quarter of 2012. The company is jointly - controlled by Light S.A (51%) and Cemig

Geração e Transmissão S.A. - Cemig GT (49%).

Axxiom Soluções Tecnológicas S.A. (Axxiom) – a privately-held corporation headquartered in the

city of Belo Horizonte, state of Minas Gerais, whose purpose is to offer technology solutions and

systems for the operational management of public utility concessionaires, including electric

power, gas, water and sewage companies. It is jointly-controlled by Light S.A (51%) and

Companhia Energética de Minas Gerais - CEMIG (49%).

Energia Olímpica S.A. (Energia Olímpica) – a privately-held corporation headquartered in the city

and state of Rio de Janeiro whose main activity is to implement the substation Vila Olímpica and

two underground lines of 138 kV, which will be connected to the substation. jointly - controlled

by Light S.A. (50.1%) and Furnas Centrais Elétricas S.A. (Furnas – 49.9%).

CR Zongshen E-Power Fabricadora de Veículos S.A. (E-Power) – a privately-held

company in the pre-operational stage whose purpose is to manufacture “Kasinski”

two-wheel electric vehicles. Light S.A. and CR Zongeshen Fabricadora de Veículos S.A.,

referred to as “Kasinski”, are the Company’s shareholders, holding 20% and 80%,

respectively, of E-Power’s registered common shares. In July 2014, the Company sold

its entire interest in E-Power.

Amazônia Energia Participações S.A. (Amazônia Energia) – a privately-held corporation

whose purpose is to hold an interest, as a shareholder, in Norte Energia S.A. (NESA),

which holds the concession for the use of public assets to explore the Belo Monte

Hydroelectric Powerplant, on Xingu river, in the state of Pará. It is jointly - controlled

66

by Light S.A. (25.5%) and Cemig Geração e Transmissão S.A. - Cemig GT (74.5%).

Amazônia Energia holds a 9.8% interest in NESA, with significant influence on

management, but without joint control. On August 26, 2010, NESA signed the

Concession Agreement 001/10 with the federal government (through the Brazilian

Ministry of Mining and Energy – MME) for the commercial operation of electric power

generation services for a 35-year term, as of the signature of said agreement. Under

the agreement, 70% of the plant’s assured power will be allocated to the regulated

market, 10% to self-producers and 20% to the free market (ACL). NESA still will have

significant organization, development and pre-operational costs for completion of the

plant. According to estimates and projections, these costs will be absorbed by the

revenues from future operations.

c) Light Group Consolidation Consolidated interim financial statements include the shareholdings of the Company, its subsidiaries, which are consolidated as follows:

Percentage of

interest (%)

Direct

Percentage of

interest (%)

Indirect

Percentage of

interest (%)

Direct

Percentage of

interest (%)

Indirect

Light Serviços de Eletricidade S.A. 100.0 - 100.0 -

Light Energia S.A. 100.0 - 100.0 -

Central Eólica Fontainha Ltda. - 100.0 - 100.0

Central Eólica São Judas Tadeu Ltda. - 100.0 - 100.0

Lajes Energia S.A - 100.0 - -

Light Esco Prestação de Serviços S.A. 100.0 - 100.0 -

Lightcom Comercializadora de Energia S.A. 100.0 - 100.0 -

Light Soluções em Eletricidade Ltda. 100.0 - 100.0 -

Instituto Light para o Desenvolvimento Urbano e Social 100.0 - 100.0 -

Itaocara Energia Ltda. 100.0 - 100.0 -

12.31.201306.30.2014

d) Light Group’s concessions and authorizations The chart below summarizes the Light Group’s concessions and authorizations effective on June

30, 2014:

67

Concessions / authorizations Date Expiration

Light SESA e Light Energia Jun/1996 Jun/2026

PCH Paracambi - Lightger Feb/2001 Feb/2031

PCH Lajes - Lajes Energia Jul/2014 Jun/2026

Usinas Eólicas - Renova Energia Aug/2010 Aug/2045

Usinas Eólicas - Renova Energia Mar/2011 to May/2011 Mar/2046 to May/2046

Usinas Eólicas - Renova Energia Mar/2012 and Apr/2012 Mar/2047 and Apr/2047

Centrais Eólicas São Salvador Ltda - Renova Energia May/2013 May/2048

PCH Cachoeira da Lixa - Renova Energia Dec/2003 Dec/2033

PCH Colino 2 - Renova Energia Dec/2003 Dec/2033

PCH Colino 1 - Renova Energia Dec/2003 Dec/2033

PCH Dores de Guanhães - Guanhães Energia Nov/2002 Nov/2032

PCH Senhora do Pôrto - Guanhães Energia Oct/2002 Oct/2032

PCH Jacaré - Guanhães Energia Oct/2002 Oct/2032

PCH Fortuna II - Guanhães Energia Dec/2001 Dec/2031

Brasil PCH S.A - Renova Energia Dec/1999 to Nov/2003 Dec/2029 to Nov/2033

3. APPROVAL AND SUMMARY OF THE MAIN ACCOUNTING PRACTICES ADOPTED IN THE PREPARATION OF THE INTERIM FINANCIAL INFORMATIONS

The authorization for the conclusion of these interim financial statements was given by

the Company’s Management on August 11, 2014.

68

The Company’s interim financial statements comprise:

• The individual financial information which has been prepared in accordance

with the accounting practices adopted in Brazil, CPC 21 (R1), which deals with

the interim financial statements, identified as Parent Company - BR GAAP.

• The consolidated interim financial information has been prepared in

accordance with International Financial Reporting Standards (“IFRSs”) issued by

the International Accounting Standards Board (IASB), International Accounting

Standards (IAS) No. 34, corresponding to the Brazilian accounting standard CPC

21 (R1), which deals with the interim financial statements and the accounting

practices adopted in Brazil, identified as Consolidated - IFRS and BR GAAP.

The accounting practices adopted in Brazil comprise those in Brazilian Corporate Law

and the pronouncements, guidelines and technical interpretations issued by the

Brazilian Accounting Pronouncement Committee and approved by the Federal

Accounting Council – CFC and the Brazilian Securities and Exchange Commission.

The parent company interim financial statements present investments in subsidiaries

jointly - controlled companies and associated companies measured by the equity

method of accounting, in accordance with the Brazilian legislation. Thus, these parent

company interim financial statements are not considered as in compliance with IFRS,

which require the valuation of these investments in the parent company’s separate

financial statements at fair value or cost.

As there is no difference between the consolidated equity and consolidated income

attributable to the parent company’s shareholders, recorded in the consolidated

interim financial statements prepared under IFRS and the accounting practices

adopted in Brazil, and the parent company’s equity and results recorded in the parent

69

company interim financial statements prepared in accordance with the accounting

practices adopted in Brazil, the Company has chosen to present the parent company

and consolidated interim financial statements as a single set, side by side.

These parent company and consolidated interim financial statements do not include all

information and disclosures required in the annual parent company and consolidated

financial statements, and therefore they should be read in conjunction with the parent

company financial statements, prepared in accordance with Brazilian GAAP,

consolidated and prepared in accordance with Brazilian GAAP and IFRS for the year

ended December 31, 2013, published on March 20, 2014. The accounting practices

adopted for these interim financial statements are consistent with those presented in

the financial statements for the year ended December 31, 2013.

These interim financial statements are presented in Real, which is the functional

currency of the Company, its subsidiaries, jointly-owned subsidiaries and associated

companies. All financial information presented in Real was rounded up thousands,

except when indicated otherwise.

In the financial statements as of December 31, 2013, the Management decided to

present PIS and COFINS tax credits on purchased energy as a reduction factor for

purchased energy costs instead of presenting them as a reduction in PIS and COFINS

on revenue, aiming to align the presentation criteria with the best practices of

companies in the same sector. This reclassification was made in the consolidated of

income and consolidated of value added for the first semeste 2013, for comparison

purposes, not impacting net income for these periods.

In addition, the Management reassessed the criteria of stating the contractual debt

amortization with the pension plan in the statement of cash flows, providing only a

reclassification for the period of 2013 for comparison purposes.

70

i. Consolidated Statement of Income semester period ended June 30, 2013.

04.01.2013 to

06.30.2013

PublishedReclassification (1)

04.01.2013 to

06.30.2013

Restated

NET REVENUE 1,846,482 (91,421) 1,755,061

COST OF OPERATIONS (1,462,038) 91,421 (1,370,617)

Energy purchased for resale (1,080,557) 91,421 (989,136)

Personnel (46,750) - (46,750)

Material (2,385) - (2,385)

Outsourced services (55,920) - (55,920)

Depreciation and amortization (87,780) - (87,780)

Construction costs (175,561) - (175,561)

Other (13,085) - (13,085)

GROSS PROFIT 384,444 - 384,444

OPERATING EXPENSES (203,690) - (203,690)

Selling expenses (77,785) - (77,785)

General and administrative expenses (119,370) - (119,370)

Other expenses (6,535) - (6,535)

EQUITY IN THE EARNINGS OF SUBSIDIARIES (466) - (466)

EARNINGS BEFORE THE FINANCIAL RESULT AND TAXES 180,288 - 180,288

FINANCIAL RESULT (95,486) - (95,486)

Revenues 130,937 - 130,937

Expenses (226,423) - (226,423)

RESULT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 84,802 - 84,802

Current income tax and social contribution (33,286) - (33,286)

Deferred income tax and social contribution 6,696 - 6,696

NET INCOME FOR THE PERIOD 58,212 - 58,212

71

01.01.2013 to

06.30.2013

PublishedReclassification (1)

01.01.2013 to

06.30.2013

Restated

NET REVENUE 3,864,831 (187,967) 3,676,864

COST OF OPERATIONS (3,050,963) 187,967 (2,862,996)

Energy purchased for resale (2,319,195) 187,967 (2,131,228)

Personnel (97,890) - (97,890)

Material (5,619) - (5,619)

Outsourced services (99,266) - (99,266)

Depreciation and amortization (172,733) - (172,733)

Construction costs (332,849) - (332,849)

Other (23,411) - (23,411)

GROSS PROFIT 813,868 - 813,868

OPERATING EXPENSES (371,770) - (371,770)

Selling expenses (132,156) - (132,156)

General and administrative expenses (224,747) - (224,747)

Other expenses (14,867) - (14,867)

EQUITY IN THE EARNINGS OF SUBSIDIARIES (1,107) - (1,107)

EARNINGS BEFORE THE FINANCIAL RESULT AND TAXES 440,991 - 440,991

FINANCIAL RESULT (234,339) - (234,339)

Revenues 146,975 - 146,975

Expenses (381,314) - (381,314)

RESULT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 206,652 - 206,652

Current income tax and social contribution (72,828) - (72,828)

Deferred income tax and social contribution 3,033 - 3,033

NET INCOME FOR THE PERIOD 136,857 - 136,857

(1)

Reclassification of PIS / COFINS tax credits on purchased energy.

72

ii. Consolidated Statement of Value Added for the period ended June 30, 2013.

01.01.2013 to

06.30.2013

PublishedReclassifications (1) 01.01.2013 to

06.30.2013 Restated

Revenues 5,324,308 - 5,324,308

Sale of goods, products and services 5,068,905 - 5,068,905

Revenue related to the construction of own assets 332,849 - 332,849

Allowance/Reversal of allowance for doubtful accounts (77,446) - (77,446)

Inputs acquired from third parties (2,904,917) 187,967 (2,716,950)

Cost of products, goods and services sold (2,319,195) 187,967 (2,131,228)

Material, energy, outsourced services and other (585,722) - (585,722)

Gross value added 2,419,391 187,967 2,607,358

Retentions (192,095) - (192,095)

Depreciation and amortization (192,095) - (192,095)

Net value added produced 2,227,296 187,967 2,415,263

Value added received in transfer 145,868 - 145,868

Equity in the earnings of subsidiaries (1,107) - (1,107)

Financial revenues 146,975 - 146,975

Total value added to distribute 2,373,164 187,967 2,561,131

Distribution of value added 2,373,164 187,967 2,561,131

Personnel 158,265 - 158,265

Direct remuneration 118,246 - 118,246

Benefits 26,233 - 26,233

Government Severance Fund for Employees (FGTS) 11,229 - 11,229

Other 2,557 - 2,557

Taxes, fees and contributions 1,648,252 187,967 1,836,219

Federal 478,665 187,967 666,632

State 1,165,295 - 1,165,295

Municipal 4,292 - 4,292

Value distributed to providers of capital 429,790 - 429,790

Interest 387,182 - 387,182

Rental 30,636 - 30,636

Other 11,972 - 11,972

Value distributed to shareholders 136,857 - 136,857

Retained earnings 136,857 - 136,857

(1)

Reclassification of PIS / COFINS tax credits on purchased energy.

73

iii. Consolidated statement of cash flows for the period ended June 30, 2013.

01.01.2013 to

06.30.2013

PublishedReclassifications (3) 01.01.2013 to

06.30.2013 Restated

Net cash from operating activities 530,526 56,558 587,084

Cash generated by (used in) operating activities 779,069 - 779,069

Net income before income tax and social contribution 206,652 - 206,652

Allowance for doubtful accounts 77,446 - 77,446

Depreciation and amortization 192,095 - 192,095

Loss (gain) from the sale of intangible asset /property, plant and equipment 8,905 - 8,905

Foreign exchange and monetary losses (gains) from financial activities 62,892 - 62,892

Provisions for contingencies and judicial deposits /restatement 55,840 - 55,840

Adjustment to present value and prepayment of receivables (938) - (938)

Expenses of interest on loans and debentures 172,780 - 172,780

Charges and monetary variation of post-employment obligations 69,856 - 69,856

Swap variation (54,472) - (54,472)

Equity in the earnings of subsidiaries 1,107 - 1,107

Remuneration of the concession's financial assets (13,094) - (13,094)

(Increase)/Decrease in Assets and Liabilities (248,543) 56,558 (191,985)

Marketable securities (627) - (627)

Consumers, concessionaires and permissionaires 251,039 - 251,039

Taxes and contributions (97,791) - (97,791)

Inventories (3,196) - (3,196)

Receivables from services rendered 5,924 - 5,924

Prepaid expenses (12,867) - (12,867)

Deposits related to litigation (9,979) - (9,979)

Other (120,456) - (120,456)

Suppliers (47,388) - (47,388)

Estimated liabilities 4,122 - 4,122

Taxes and contributions 89,700 - 89,700

Regulatory charges (50,322) - (50,322)

Provisions (37,846) - (37,846)

Post-employment benefits (57,784) 56,558 (1,226)

Other liabilities 66,619 - 66,619

Interests paid (147,250) - (147,250)

Income tax and social contributions paid (80,441) - (80,441)

Net cash from investing activities (424,165) - (424,165)

Acquisition of property, plant and equipment (49,442) - (49,442)

Aquisition of intangible assets (323,110) - (323,110)

Investment acquisitions (59,579) - (59,579)

Financial investments 7,966 - 7,966

Net cash generated by (used in) financing activities 1,700,595 (56,558) 1,644,037

Dividends and interest on equity paid (74,792) - (74,792)

Loans, financing and debentures 2,433,523 - 2,433,523

Amortization of loans, financing and debentures (658,136) - (658,136)

Amortization of contractual debt with pention plans - (56,558) (56,558)

Net increase (decrease) in cash and cash equivalents 1,806,956 - 1,806,956

Cash and cash equivalents at the beginning of fiscal year 230,356 - 230,356

Cash and cash equivalents at the end of fiscal year 2,037,312 - 2,037,312

(3)

Reclassification of the contractual debt amortization with the pension plan.

a) Rules, interpretations and amendment that are effective as of January 1, 2014

74

IFRIC 21 – Levies – provides guidance on when to recognize a liability for a levy imposed by a

government, both for levies that are accounted for in accordance with IAS 37 Provisions,

Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy

is certain.

IAS 36 – Impairment of assets (CPC 01) – provides guidance on the disclosure of recoverable

amounts of non-financial assets.

IAS 39 – Impairment of assets – provides additional guidance by clarifying that there is no need

to discontinue hedge accounting if the derivative instrument is renewed, provided that certain

criteria are met.

Amendments to IFRS 10, IFRS 12, and IAS 27 – the amendments to IFRS 10 define an investment

entity and require that the reporting entity that fits the definition of investment entity does not

consolidate its subsidiaries, but, instead, measures its subsidiaries at their fair value through

profit or loss in their consolidated and separate financial statements.

In order to be characterized as an investment entity, a reporting entity has to:

• obtain funds from one or more investors for the purpose of providing those investors with investment management services;

• commit to its investors that its business purpose is to invest funds solely for returns from capital appreciation and/or investment income, or both; and

• measure and evaluate the performance of substantially all of its investments on a fair value basis.

There were changes due to IFRS 12 and IAS 27, which introduced new disclosure requirements

for investment entities.

75

The Company analyzed said changes in the interim financial statements and no material impact

was identified.

4. CASH AND CASH EQUIVALENTS

06.30.2014 12.31.2013 06.30.2014 12.31.2013

Money available 362 235 46,997 50,431

Short-term financial investments

Bank deposit certificate (CDB) 17 26,567 1,182,219 495,998

Fixed Income Fund

Bank deposit certificate (CDB) - - 120,238 -

Financial Bills - Banks - - 128,074 -

Treasury Financial Bills - - 40,476 -

Debentures - - 24,209 -

Other - - 36,838 -

TOTAL 379 26,802 1,579,051 546,429

Parent Company Consolidated

The short-term investments are floating and correspond to transactions with financial

institutions trading in the domestic financial market. These short-term investments

have a daily repurchase commitment by the counterparty financial institution (the

repurchase rate is previously agreed upon by the parties), and most of them yield

according to the variation of the interbank deposit certificate (CDI), with immaterial

loss of income in case of early redemption.

The fixed income fund is exclusive for companies of the CEMIG Group, with short-term

investments in fixed income securities, most of them indexed to the CDI.

The average yield of investments is 102.0% of the CDI (99.8% of the CDI on December

31, 2013),

The Company's exposure to interest rate risks and a sensitivity analysis of financial

assets and liabilities are reported in Note 32.

76

5. MARKETABLE SECURITIES

These papers involve short-term bank deposit certificates (CDB) in the amount of

R$14,816 (R$1,244,000 on December 31, 2013) in the consolidated financial

statements. They are represented by: (i) surety bonds pledged in power auctions, (ii)

funds allocated to settling the debt contract related to post-employment benefits on

December 31, 2013, (iii) proceeds from the sale of assets that were held for

reinvestment in the electric grid system, (iv) investments to mature within three

months or longer with loss of value in case of early redemption. The average yield of

these investments is 92.5% of the CDI (99.8% of the CDI on December 31, 2013).

6. CONSUMERS, CONCESSIONAIRES, PERMISSIONAIRES AND CLIENTS

Current Non-current Total Current Non-current Total

Billed sales 1,135,105 - 1,135,105 1,097,252 - 1,097,252

Unbilled sales 267,679 - 267,679 317,007 - 317,007

Debt payment by installments 94,736 156,974 251,710 97,208 157,798 255,006

Short-term energy 26,213 - 26,213 19,164 - 19,164

Sales within the free environment 339,839 - 339,839 138,834 - 138,834

Supply and charges related to use of electric grid 14,027 - 14,027 14,299 - 14,299

Other receivables 685 70,703 71,388 1,210 51,616 52,826

1,878,284 227,677 2,105,961 1,684,974 209,414 1,894,388

(-) Allowance for doubtful accounts (467,097) - (467,097) (461,561) - (461,561)

TOTAL 1,411,187 227,677 1,638,864 1,223,413 209,414 1,432,827

06.30.2014 12.31.2013

Consolidated

An allowance for doubtful accounts was set up based on certain premises and in an

amount deemed sufficient by the Management to meet any asset realization losses.

In the first semester of 2014, bad debts were written-off in the amount of R$55,835

(R$269,400 In the first semester of 2013). The write-offs were realized against

allowance for doubtful accounts already recorded, thus, not impacting the net income

for the period.

77

The balances of debt repayment facilities were adjusted to their present value, as

applicable. The present value is determined for each relevant consumer debt

renegotiation (debt repayment facilities) based on such interest rate as will reflect the

term and risk associated with each individual transaction, on average 1% per month.

Outstanding balances and receivables in connection with invoiced electric power sales

and also debt repayment programs are summarized as follows:

BILLED SALES AND INSTALLMENT PAYMENTOverdue up to

90 days

Overdue over

90 days06.30.2014 12.31.2013 06.30.2014 12.31.2013

Residential 228,433 142,313 109,671 480,417 434,624 (102,187) (104,983)

Industrial 20,290 13,898 105,604 139,792 156,760 (69,155) (68,146)

Commercial 141,012 56,463 275,732 473,207 489,569 (237,450) (230,922)

Rural 1,026 364 438 1,828 1,888 (389) (519)

Public sector 68,480 36,915 95,425 200,820 208,579 (46,470) (45,031)

Public lighting 14,642 3,347 20,098 38,087 31,273 (6,551) (7,057)

Public utility 14,981 25,121 12,562 52,664 29,565 (4,895) (4,903)

TOTAL 488,864 278,421 619,530 1,386,815 1,352,258 (467,097) (461,561)

Allowance for doubtful accountsOverdue balancesMaturing

balance

TOTAL

Changes in consolidated Allowance for Doubtful Accounts - PCLD in the periods:

BALANCE ON 12.31.2013 (461,561)

Additions/Reversals (61,371)

Write-offs 55,835

BALANCE ON 06.30.2014 (467,097)

BALANCE ON 12.31.2012 (721,905)

Additions/Reversals (77,446)

Write-offs 269,400

BALANCE ON 06.30.2013 (529,951)

The Company’s exposure to credit risks related to consumers, concessionaires,

permissionaires and clients is reported in Note 32.

78

7. RECOVERABLE TAXES

Current Non-current Total Current Non-current Total

TAXES AND CONTRIBUTIONS 112,241 99,675 211,916 105,821 88,777 194,598

ICMS to offset 69,133 98,613 167,746 70,275 88,777 159,052

PIS and COFINS to offset 22,557 - 22,557 15,782 - 15,782

Other 20,551 1,062 21,613 19,764 - 19,764 -

INCOME TAX AND SOCIAL CONTRIBUTION 31,736 - 31,736 55,140 - 55,140

Tax credits 26,234 - 26,234 28,170 - 28,170

Advances 5,502 - 5,502 26,970 - 26,970

TOTAL 143,977 99,675 243,652 160,961 88,777 249,738

Consolidated

06.30.2014 12.31.2013

8. DEFERRED TAXES

IR/CSLL

Assets

IR/CSLL

Liabilities

IR/CSLL

Net

IR/CSLL

Assets

IR/CSLL

Liabilities

IR/CSLL

Net

Allowance for doubtful accounts 153,373 - 153,373 151,745 - 151,745

Provision for profit sharing 7,526 - 7,526 12,357 - 12,357

Provision for labor contingencies 54,147 - 54,147 54,343 - 54,343

Provision for tax contingencies 65,846 - 65,846 72,548 - 72,548

Provision for civil contingencies 54,867 - 54,867 56,486 - 56,486

Regulatory assets and liabilities not recognized under IFRS 159,530 - 159,530 127,106 - 127,106

Pension plan complement - CVM 695/12 - - - 39,109 - 39,109

Other 19,850 - 19,850 17,760 - 17,760

Tax losses 233,856 - 233,856 236,601 - 236,601

Social contribution tax loss carryforwards 87,215 - 87,215 88,203 - 88,203

Remuneration of financial assets - (209,770) (209,770) - (194,536) (194,536)

Derivative financial instruments - (22,113) (22,113) - (43,386) (43,386)

Deemed cost - Light Energia - (216,829) (216,829) - (221,911) (221,911)

GROSS DEFERRED TAX ASSETS/(LIABILITIES) 836,210 (448,712) 387,498 856,258 (459,833) 396,425

Net amount (229,459) 229,459 - (233,423) 233,423 -

NET DEFERRED TAX ASSETS/(LIABILITIES) 606,751 (219,253) 387,498 622,835 (226,410) 396,425

06.30.2014 12.31.2013

Consolidated

79

9. CONCESSIONS’ FINANCIAL ASSETS

These represent the amounts receivable at the end of concession from the granting

authority, or any of its agents, by way of compensation for investments made and not

recovered through services rendered related to subsidiary Light SESA's concession.

The changes in the balances, net of special obligations, related to Idemnifiable assets

(Concession) in periods 2013 and 2012 are as follows:

BALANCE ON 12.31.2013 1,926,226

Additions (a) 85,086

Adjustment to New Replacement Value (NRV) 44,806

BALANCE ON 06.30.2014 2,056,118

BALANCE ON 12.31.2012 1,573,349

Additions (a) 140,349

Adjustment to New Replacement Value (NRV) 13,094

Write-offs (1,359)

BALANCE ON 06.30.2013 1,725,433

(a) Transfer resulting from the split of assets after start-up, pursuant to IFRIC 12/ICPC 01 (see Note 13).

(b) IGPM (General Market Price Index) on idemnifiable financial asset approved in the last tariff revision process.

80

10. OTHER RECEIVABLES

Current Non-current Total Current Non-current Total

Advances to suppliers and employees 30,186 - 30,186 39,016 - 39,016

Account receivable from the sale of property - - - 12,046 - 12,046

Public lighting fee 32,518 - 32,518 58,424 - 58,424

Expenditures to refund 24,435 - 24,435 34,249 - 34,249

Subsidy to low-income segment 813 - 813 6,278 - 6,278

CDE subsidy (a) 126,305 - 126,305 33,680 - 33,680

Assets and rights allocated for sale - 2,147 2,147 - 2,147 2,147

Other (b) 33,892 639 34,531 30,603 639 31,242

TOTAL 248,149 2,786 250,935 214,296 2,786 217,082

Consolidated

06.30.2014 12.31.2013

(a)

It includes subsidy resulting from Decrees 7,945/13 and 8,221/14, as described below.

(b) It refers to sundry receivables

Due to the unfavorable hydroenergetic conditions since the end of 2012, including low

reservoir levels at the hydroelectric plants, thermal power dispatch was of its

maximum. Given the concessionaires’ exposure to the spot market, resulting from the

allocation of power and capacity physical guarantee quotas, together with the

termination of the 6th and 7th new energy auction contracts, due to the revoking of

plant authorization by Aneel, distribution companies’ energy costs increased

substantially at the turn of the year. As a result of this scenario, and the fact that the

distribution concessionaires had no control over these costs, the federal

government issued Decree No. 7,945/13, which determined the transfer of funds from

the energy development account (CDE) to partially offset the period impact on the

distribution companies.

In 2014, the problem has expanded in view of the increase in unintended exposure of

distribution companies due to agreements that expired in December 2013, which

meant that new measures were needed, additional to Law No. 12,783/13.

In order to cover January 2014 deficit, the government issued Decree No. 8,203/14, as

of March 7, 2014, expanding the allocation of CDE funds to neutralize the unintended

81

contractual exposure of distribution companies in the spot market, resulting of

frustrated purchase at Existing Energy Auction A-1 in December 2013. For the

Company, the amount received in March 2014, regarding January, was R$181,210.

In order to remedy the tariff deficit of distribution concessionaires for the remaining

months of the year (February to December 2014) , the government issued, on April 2,

2014, the Decree No. 8,221/14, which sets forth the creation Account on the Regulated

Contracting Environment – ACR ACCOUNT, to be managed by the Electric Energy

Commercialization Board (CCEE). Funds to be raised by CCEE with financial institutions

shall be allocated to such Account to cover all or part of the tariff deficit incurred by

energy distribution concessionaires due to: (i) unintended exposure in the spot market;

and (ii) dispatch of thermal power plants bound to Availability Agreements.

To regulate such Decree, Aneel initiated Public Hearing No. 007/14, which issued on

April 16, 2014, the outcome of the AP, through Technical Note No. 135/2014-

SRE/Aneel and approval of Normative Resolution No. 612 as of 16 April 2014.

According to documents made available, proceeds from the CCEE loan shall be

transferred to the distribution companies in their respective accounts related to the

settlement in the spot market. In future time, funds contributed shall be paid by

captive customers through tariff increases in 2015 incorporated in the CDE, whose unit

value shall be uniform for all captive customers of the country.

The total amount recognized as a result of these regulations was R$1,385,306 in the

first semester of 2014 (R$483,906 in the first semester of 2013). Of this amount, only

R$81,709 relating to May 2014, as per Official Letter ANEEL No. 092/2014, is yet to be

received by August 28, 2014. The effects of these items were recorded as a cost

reduction of electric power in the account “Purchased energy for resale” against “other

credits”, in the income statement, under the account “CDE Subsidy” in accordance with

CPC 07/IAS 20 - Subsidies and Government Allowances.

82

11. INVESTMENTS

06.30.2014 12.31.2013 06.30.2014 12.31.2013

Measured by the equity method:

Light SESA 2,276,702 2,436,463 - -

Light Energia 710,180 707,236 - -

Renova Energia S.A (b) - - 370,832 376,923

Guanhães Energia S.A (a)(b) - - 86,766 86,766

Lajes Energia S.A - - - -

Light Esco 103,511 104,339 - -

EBL Energia - - 366 406

Lightcom 39,501 16,263 - -

Light Soluções 2,185 2,497 - -

Lightger 42,905 41,712 42,905 41,712

Itaocara Energia (a) 23,725 23,945 - -

Axxiom 13,874 8,207 13,874 8,207

Amazônia Energia (a) 116,032 106,380 116,032 106,380

E-Power (a) - - - -

SPE Olímpica - - - -

Instituto Light - - - -

SUBTOTAL 3,328,615 3,447,042 630,775 620,394

Goodwill from future profitability 2,034 2,034 2,034 2,034

Other permanent investments - - 19,666 19,775

SUBTOTAL 2,034 2,034 21,700 21,809

TOTAL INVESTMENTS 3,330,649 3,449,076 652,475 642,203

Parent Company Consolidated

(a)

Companies at pre-operational stage

(b) Refers to investments calculated based on the adjusted equity for purposes of equity in the earnings

(losses) of subsidiaries

83

Information on subsidiaries (consolidated) and jointly-owned subsidiaries (equity

income and proportional balances) is as follows:

06.30.2014 12.31.2013 06.30.2014 12.31.2013 06.30.2014 06.30.2013 06.30.2014 06.30.2013

Light SESA 100.0% 2,276,702 2,436,463 (201,005) - - (12,877) 41,244 30,923

Light Energia 100.0% 710,180 707,236 (163,752) (34,652) - (28,925) 132,044 98,923

Light Esco 100.0% 103,511 104,339 (1,511) (90) - (15,615) 594 6,023

Lightcom 100.0% 39,501 16,263 (6,465) (1,035) - (63) 28,669 3,420

Light Soluções 100.0% 2,185 2,497 (142) (142) - - (312) 23

Lightger 51.0% 42,905 41,712 (225) - - - 1,417 2,107

Itaocara Energia 100.0% 23,725 23,945 - - - - (221) (207)

Axxiom 51.0% 13,874 8,207 - (234) - - (1,351) (412)

Amazônia Energia 25.5% 116,032 106,380 - - - - (690) (483)

3,328,615 3,447,042 (373,100) (36,153) - (57,480) 201,394 140,317

Parent Company

Subsidiaries and jointly-owned

subsidiaries - Interest

Shareholders' equityDividends and interest on equity

receivable

Dividends and interest on equity

receivedProfit (loss) for the period

06.30.2014 12.31.2013 06.30.2014 12.31.2013 06.30.2014 12.31.2013 06.30.2014 06.30.2013

Light Energia

Renova Energia 21.9% 217,157 220,123 - - 177,094 - (6,091) (10,780)

Guanhães Energia 51.0% 70,180 73,753 - - - 47,233 - -

Light Esco -

EBL Energia 33.3% 366 406 - - - - (40) (101)

Lightger 51.0% 42,905 41,712 - - - - 1,417 2,107

Axxiom 51.0% 13,874 8,207 - (234) - - (1,351) (412)

Amazônia Energia 25.5% 116,032 106,380 - - - - (690) (483)

460,514 450,581 - (234) 177,094 47,233 (6,755) (9,669)

Consolidated

Jointly-owned subsidiaries -

Interest

Shareholders' equity Profit (loss) for the periodFunds allocated to capital

increaseCapital stock to pay-up

84

Other information:

06.30.2014 12.31.2013 06.30.2014 12.31.2013

Light SESA 2,082,365 2,082,365 10,412,397 10,596,246

Light Energia 77,422 77,422 2,191,076 2,102,105

Light Esco 79,584 79,584 395,105 310,636

Lightcom 4,500 4,500 349,268 80,529

Light Soluções 1,350 1,350 3,117 3,629

Lightger 40,408 40,408 102,719 103,546

Itaocara Energia 29,562 29,562 27,163 27,137

Axxiom 8,772 6,987 27,572 21,273

Amazônia Energia 119,398 109,055 116,025 106,379

E-Power 777 777 459 459

06.30.2014 12.31.2013 06.30.2014 12.31.2013

Light Energia

Renova Energia 222,472 214,574 973,373 810,226

Guanhães Energia 70,180 26,520 158,989 142,949

Light Esco

EBL Energia 367 367 370 420

Lightger 40,408 40,408 102,719 103,546

Axxiom 8,772 6,987 27,572 21,273

Amazônia Energia 119,398 109,055 116,025 106,379

E-Power 777 777 459 459

Parent Company

Subsidiaries and jointly-

owned subsidiaries

Jointly-owned

subsidiareis

Paid-up capital

Paid-up capital Total Assets

Consolidated

Total Assets

85

Changes in subsidiaries (consolidated) and jointly-owned subsidiaries (equity income)

in the six-month period ended June 30, 2014 and 2013:

12.31.2013 Capital increase

Dividends /

interest on

equity

Comprehensive

IncomeOther

Equity in the

earnings

(losses) of

subsidiaries

06.30.2014

Light SESA 2,436,463 - (201,005) - - 41,244 2,276,702

Light Energia 707,236 - (129,100) - - 132,044 710,180

Light Esco 104,339 - (1,422) - - 594 103,511

Lightcom 16,263 - (5,430) - (1) 28,669 39,501

Light Soluções 2,497 - - - - (312) 2,185

Lightger 41,712 - (225) - 1 1,417 42,905

Itaocara Energia 23,945 - - - 1 (221) 23,725

Axxiom 8,207 6,783 - - 235 (1,351) 13,874

Amazônia Energia 106,380 10,342 - - - (690) 116,032

TOTAL 3,447,042 17,125 (337,182) - 236 201,394 3,328,615

12.31.2012 Capital increase

Dividends /

interest on

equity

Comprehensive

IncomeOther

Equity in the

earnings

(losses) of

subsidiaries

06.30.2013

Light SESA 2,188,815 - - - - 30,923 2,219,738

Light Energia 578,819 - (33,897) - - 98,923 643,845

Light Esco 108,904 - (14,643) - (3,636) 6,023 96,648

Lightcom 9,017 - - - 3,085 3,420 15,522

Light Soluções 2,042 - - - - 23 2,065

Lightger 41,909 - - - - 2,107 44,016

Itaocara Energia 24,567 - - - - (207) 24,360

Axxiom 5,160 - - - - (412) 4,748

Amazônia Energia 69,576 24,166 - - 1 (483) 93,260

E-Power 132 - - - - - 132

TOTAL 3,028,941 24,166 (48,540) - (550) 140,317 3,144,334

Parent Company

12.31.2013 Capital increase

Dividends /

interest on

equity

Other

Equity in the

earnings

(losses) of

subsidiaries

06.30.2014

Light Energia

Renova Energia 376,923 - - (4,513) (1,578) 370,832

Guanhães Energia 86,766 - - - - 86,766

Light Esco

EBL Energia 406 - - - (40) 366

Lightger 41,712 - (225) 1 1,417 42,905

Axxiom 8,207 6,783 - 235 (1,351) 13,874

Amazônia Energia 106,380 10,342 - - (690) 116,032

TOTAL 620,394 17,125 (225) (4,277) (2,242) 630,775

Consolidated

86

12.31.2012 Capital increase

Dividends /

interest on

equity

Other

Equity in the

earnings

(losses) of

subsidiaries

06.30.2013

Light Energia

Renova Energia 381,383 - - 4 (3,963) 377,424

Guanhães Energia 36,476 35,413 - - - 71,889

Light Esco

EBL Energia 712 - - - (101) 611

Lightger 41,909 - - - 2,107 44,016

Axxiom 5,160 - - - (412) 4,748

Amazônia Energia 69,576 24,166 - 1 (483) 93,260

E-Power 132 - - - - 132

TOTAL 535,348 59,579 - 5 (2,852) 592,080

Consolidated

The full balances of main jointly-owned subsidiaries, which were recorded under the

equity method in the periods, are as follows:

06.30.2014 AXXIOM AMAZÔNIA LIGHTGER RENOVA GUANHÃES EBL

ASSETS

Current 42,520 149 25,015 724,578 30,961 1,120

Cash and cash equivalents 7,602 137 21,638 642,210 30,947 775

Other 34,918 12 3,377 82,368 14 345

Non-current 11,542 454,854 176,396 3,728,181 280,783 -

TOTAL ASSETS 54,062 455,003 201,411 4,452,759 311,744 1,120

LIABILITIES

Current 21,625 1 11,180 722,201 168,292 11

Loans, financing and debentures 5,462 - 7,371 496,685 165,972 -

Other 16,163 1 3,809 225,516 2,320 11

Non-current 5,235 - 106,104 1,927,032 5,844 -

Loans, financing and debentures 5,006 - 106,104 1,908,720 - -

Other 229 - - 18,312 5,844 -

Shareholders' equity 27,202 455,002 84,127 1,803,526 137,608 1,109

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 54,062 455,003 201,411 4,452,759 311,744 1,120

6M14 AXXIOM AMAZÔNIA LIGHTGER RENOVA GUANHÃES EBL

INCOME STATEMENT

Net revenue from sales 23,822 - 7,641 107,098 - 46

Cost of sales (19,234) - - (45,960) - (79)

GROSS PROFIT 4,588 - 7,641 61,138 - (33)

General and administrative expenses (3,876) (2,032) (2,484) (36,734) - (110)

Equity in the earnings (losses) of subsidiaries 235 (691) 1,425 (1,578) - -

Net financial result (9) 13 (2,941) (23,655) - 29

EARNINGS BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 938 (2,710) 3,641 (829) - (114)

Income tax and social contribution (477) - (846) (6,391) - (8)

NET INCOME (LOSS) FOR THE PERIOD 461 (2,710) 2,795 (7,220) - (122)

87

12.31.2013 AXXIOM AMAZÔNIA LIGHTGER RENOVA GUANHÃES EBL

ASSETS

Current 33,563 287 21,381 475,910 40,918 1,238

Cash and cash equivalents 10,045 275 17,703 374,047 39,283 918

Other 23,518 12 3,678 101,863 1,635 320

Non-current 8,149 416,890 181,651 3,230,523 239,374 34

TOTAL ASSETS 41,712 417,177 203,032 3,706,433 280,292 1,272

LIABILITIES

Current 15,040 - 11,352 1,409,536 130,368 41

Loans, financing and debentures 6,070 - 7,656 1,109,116 122,540 -

Other 8,970 - 3,696 300,420 7,828 41

Non-current 10,579 - 109,893 1,296,338 5,310 -

Loans, financing and debentures 10,012 - 109,893 1,281,140 - -

Other 567 - - 15,198 5,310 -

Shareholders' equity 16,093 417,177 81,787 1,000,559 144,614 1,231

TOTAL LIABILITIES AND SHAREHOLDERS´ EQUITY 41,712 417,177 203,032 3,706,433 280,292 1,272

6M13 AXXIOM AMAZÔNIA LIGHTGER RENOVA GUANHÃES EBL

INCOME STATEMENT

Net revenue from sales 15,073 - 15,512 107,754 - 930

Cost of sales (12,228) - (6,409) (45,648) - (490)

GROSS PROFIT 2,845 - 9,103 62,106 - 440

General and administrative expenses (3,198) (1,902) (1,402) (26,434) - (133)

Net financial result - 8 (3,570) (37,930) - 24

EARNINGS BEFORE INCOME TAX AND SOCIAL CONTRIBUTION (353) (1,894) 4,131 (2,258) - 331

Income tax and social contribution (456) - (654) (4,443) - (26)

NET INCOME (LOSS) FOR THE PERIOD (809) (1,894) 3,477 (6,701) - 305

On June 30, 2014, current liabilities of the indirect jointly-controlled entity Guanhães

Energia were higher than current assets. This was mainly due to delays in raising funds

from the BNDES for the construction of projects. The Management has been taking

actions at Guanhães Energia with the purpose of concluding the releases of long-term

financing from BNDES.

a) Consortia

• UHE Itaocara Consortium

The Company, through the subsidiary Itaocara Energia, holds a 51% interest in the UHE

Itaocara consortium, while Cemig Geração e Transmissão S.A. – Cemig GT holds the

other 49.0%. The consortium aims to explore the Itaocara hydroelectric powerplant.

88

Assets and liabilities balances referring to the participation in the Consortium are

incorporated into the subsidiary’s balances. On December 28, 2011, IBAMA granted

the prior license and on July 29, 2013, Itaocara Hydroelectric Power Plant obtained the

installation license allowing the beginning of works.

On August 9, 2013, the subsidiary Itaocara Energia requested the termination of the

Concession Agreement 12/2001 to ANEEL, as per Article 4 - A of Law 9074/2005,

introduced by Law 12839/2013. The decision is based on the fact that the necessary

time of revenue to obtain return on investment was jeopardized after 12 years of the

concession term have elapsed before the release of the Installation Environmental

License.

Also based on said Article, the Company understands that there will be no significant

loss in the investments made in the project so far because it is entitled to the following

rights:

(i) the release of guarantees of compliance with obligations concerning the Concession

Agreement; (ii) the non-payment for the Use of Public Asset; and (iii) the

reimbursement for costs incurred in the preparation of studies or plans. The

investments recorded as asset in Itaocara Energia are basically costs necessary to

obtain the Previous Environmental License, the Installment Environmental License and

the project’s feasibility.

On November 26, 2013, the Ministry of Mines and Energy (MME) and the Itaocara

Energia subsidiary entered into an instrument of termination for the Concession

Agreement 12/2001-ANEEL, which governs the implementation and exploration of the

Itaocara Hydroelectric Powerplant. Considering the above-mentioned return, the

consortium reversed the obligation for the Use of Public Asset against intangible assets.

The auction of the Itaocara I Hydroelectric Powerplant was scheduled for December 13,

2013, pursuant to Auction Notice 10/2013, but ANEEL, on a note disclosed on

December 4, 2013, removed the Itaocara I Hydroelectric Powerplant from the auction

due to a reappraisal of the Water Availability Reserve Amount. Management believes

89

that the Itaocara I Hydroelectric Powerplant will be auctioned in 2014, and the

Company is assessing the possibility of taking part in this process.

• Maracanã Solar Consortium The Company, through subsidiary Light Esco S.A., holds a 51.0% interest in the

Maracanã Solar consortium, whereas EDF Consultoria em Projetos de Geração de

Energia Elétrica Ltda. – EDF Consultoria holds 49.0% interest. The consortium aims at

the development, construction and operation of a photovoltaic plant with capacity of

391 kWp, installed on the top of the Maracanã stadium. The construction has been

concluded in the second quarter of 2013.

The original contract entered into with the State of Rio de Janeiro established the

recovery of the invested amount through the sale of energy. In August 2013, the

Company signed an amendment with the state of Rio de Janeiro, changing the way the

investment is to be recovered to the sale of quotas of the photovoltaic plant, through

the Maracanã Solar seal. However, as the quotas are under negotiation, Management

has decided to record a provision for loss on property, plant and equipment,

corresponding to the investments made by the Consortium in the amount of R$4,968

given that it did not have sufficient evidence on the recoverability of these assets on

December 31, 2013.

• Água Limpa Hydroelectric Powerplant Consortium The Company, through its subsidiary Light Energia S.A., is a party to the Água Limpa

Hydroelectric Powerplant Consortium, in the state of Mato Grosso, with a 51.0%

interest, and the other party is Cemig Geração e Transmissão S.A – CEMIG GT, with a

49.0% interest. The consortium’s purpose is to implement, operate, maintain and

commercially explore the project. There were no relevant expenses incurred until June

30, 2014.

90

b) Inclusion of CEMIG GT in the controlling block of Renova Energia S.A. On February 14, 2014, CEMIG GT made an advance for future capital increase (AFAC)

of R$739,943 at Chipley SP Participações S.A. (Chipley), jointly controlledof Renova

Energia, which was fully used to pay for the acquisition of a 51% interest in Brasil PCH

S.A. (Brasil PCH) (49% interest held by Petrobras and 2% interest held by Jobelpa), thus

sharing its control.

On February 20, 2014, the Board of Directors of Renova Energia approved a capital

increase of up to R$3,545,602, at the issue price of R$17.7789 per share,

corresponding to R$53.3367 per Unit (composed of one common share and two

preferred shares).

On March 31, 2014, the Board of Directors of Renova Energia approved an AFAC by

Cemig GT, irrevocably and irreversibly, by means of a deposit in the current account of

Renova Energia in the amount of R$810,129, which was paid in March 31, 2014. These

funds, along with funds provided by Cemig GT to acquire Brazil PCH, for R$739,943 on

February 14, 2014, shall be paid up until September 29, 2014, closing date of the

preemptive rights of other shareholders of Renova Energia.

After the capital increase, a new Shareholders’ Agreement will be signed, whereby

CEMIG GT, RR Participações and Light Energia will be included in the controlling block

of Renova Energia S.A.

91

12. PROPERTY, PLANT AND EQUIPMENT

12.31.2013

Average

annual rateHistorical cost

Accumulated

depreciationNet value Net value

Generation 3.32 2,776,218 (1,618,847) 1,157,371 1,107,641

Transmission 3.91 57,984 (43,734) 14,250 14,588

Distribution 10.27 31,675 (28,307) 3,368 3,773

Administration 7.96 364,485 (186,714) 177,771 137,180

Sales 7.96 14,835 (9,134) 5,701 5,885

IN SERVICE 3,245,197 (1,886,736) 1,358,461 1,269,067

Generation 198,179 - 198,179 261,517

Administration 94,933 - 94,933 148,138

IN PROGRESS 293,112 - 293,112 409,655

TOTAL PROPERTY, PLANT AND EQUIPMENT 3,538,309 (1,886,736) 1,651,573 1,678,722

06.30.2014

Consolidated

The statement below summarizes the changes in property, plant and equipment:

Balance on

12.31.2013Additions Write-offs Transfer to Service

Balance on

06.30.2014

PROPERTY, PLANT AND EQUIPMENT IN SERVICE

Cost

Land 104,976 - - - 104,976

Reservoir, dams and water mains 1,265,186 - - - 1,265,186

Buildings, works and improvements 268,130 - - 18,402 286,532

Machinery and equipment 1,327,711 - - 108,491 1,436,202

Vehicles 15,199 - - - 15,199

Fixtures and furnishings 135,314 - - 1,788 137,102

TOTAL PROPERT, PLANT AND EQUIPMENT IN SERVICE - COST 3,116,516 - - 128,681 3,245,197

(-) Depreciation

Reservoir, dams and water mains (819,640) (10,561) - - (830,201)

Buildings, works and improvements (163,967) (3,049) - - (167,016)

Machinery and equipment (733,890) (23,617) - - (757,507)

Vehicles (14,130) (228) - - (14,358)

Fixtures and furnishings (115,822) (1,832) - - (117,654)

TOTAL PROPERTY, PLANT AND EQUIPMENT IN SERVICE -COST/DEPRECIATION (1,847,449) (39,287) - - (1,886,736)

PROPERTY, PLANT AND EQUIPMENT IN PROGRESS

Land 162 28 - - 190

Reservoir, dams and water mains 88,511 2,380 - - 90,891

Buildings, works and improvements 68,687 1,719 - (23,517) 46,889

Machinery and equipment 212,200 10,518 (2,963) (104,871) 114,884

Vehicles 183 8 - - 191

Fixtures and furnishings 38,966 93 - - 39,059

Studies and projects 946 355 - (293) 1,008

TOTAL PROPERTY, PLANT AND EQUIPMENT IN PROGRESS 409,655 15,101 (2,963) (128,681) 293,112

TOTAL PROPERTY, PLANT AND EQUIPMENT 1,678,722 (24,186) (2,963) - 1,651,573

Consolidated

92

Balance on

12.31.2012Additions Write-offs Transfer to Service

Balance on

06.30.2013

PROPERTY, PLANT AND EQUIPMENT IN SERVICE

Cost

Land 104,976 - - - 104,976

Reservoir, dams and water mains 1,254,194 - - 10,992 1,265,186

Buildings, works and improvements 261,085 - - 413 261,498

Machinery and equipment 1,330,508 - (3,843) 32,000 1,358,665

Vehicles 14,821 - - - 14,821

Fixtures and furnishings 137,289 - - 20 137,309

TOTAL PROPERT, PLANT AND EQUIPMENT IN SERVICE - COST 3,102,873 - (3,843) 43,425 3,142,455

(-) Depreciation

Reservoir, dams and water mains (798,588) (10,484) - - (809,072)

Buildings, works and improvements (161,883) (3,004) - - (164,887)

Machinery and equipment (729,075) (21,025) 2,554 - (747,546)

Vehicles (13,965) (210) - - (14,175)

Fixtures and furnishings (114,358) (2,024) - - (116,382)

TOTAL PROPERTY, PLANT AND EQUIPMENT IN SERVICE - COST/DEPRECIATION (1,817,869) (36,747) 2,554 - (1,852,062)

PROPERTY, PLANT AND EQUIPMENT IN PROGRESS

Land 98 32 - - 130

Reservoir, dams and water mains 85,330 2,502 - (10,219) 77,613

Buildings, works and improvements 71,161 5,331 - (1,311) 75,181

Machinery and equipment 153,080 40,727 - (30,169) 163,638

Vehicles 777 - - (139) 638

Fixtures and furnishings 37,787 966 - (1,515) 37,238

Studies and projects 2,018 209 - (72) 2,155

TOTAL PROPERTY, PLANT AND EQUIPMENT IN PROGRESS 350,251 49,767 - (43,425) 356,593

TOTAL PROPERTY, PLANT AND EQUIPMENT 1,635,255 13,020 (1,289) - 1,646,986

Consolidated

In the first semester of 2014, R$1,717 (R$325 in the first half of 2013) was carried over

to property, plant and equipment as interest capitalization, with average capitalization

rate of 8% p.a.

The Company did not identify indicator of impairment of its fixed assets in 2014. In

2013, the Company recognized a provision for loss of the assets of the photovoltaic

plant of the Maracanã Solar Consortium. The concession agreements of the

hydroelectric powerplants of subsidiary Light Energia establish that at the end of each

concession’s term the granting authority will determine the amount to be indemnified

to the subsidiaries and jointly-owned subsidiaries, so that Management understands

that the value of fixed assets not depreciated at the end of concession will be

reimbursed by the granting authority.

93

For property, plant and equipment items without indemnity guarantee, the items are

depreciated under the straight-line method up to the authorization or concession

limit.

13. INTANGIBLE ASSETS

12.31.2013

Historical costAccumulated

amortizationNet value Net value

Concession right of use 6,587,083 (3,632,686) 2,954,397 3,021,862

Other (a) 580,123 (460,443) 119,680 109,731

IN SERVICE 7,167,206 (4,093,129) 3,074,077 3,131,593

Concession right of use 781,753 - 781,753 663,393

Other (a) 154,945 - 154,945 167,122

IN PROGRESS 936,698 - 936,698 830,515

TOTAL INTANGIBLE ASSETS 8,103,904 (4,093,129) 4,010,775 3,962,108

06.30.2014

Consolidated

(a)

Includes basically software and right-of-way.

Intangible assets are net of special obligations comprising contributions made by the

federal government, states, municipalities and consumers, as well as any unqualified

donations (i.e. not subject to any consideration to the benefit of donor), and subsidy

intended as investments to be made toward concession of the electric power

distribution utility. On June 30, 2014, the balance of special obligations was R$319,757

(R$226,356 on December 31, 2013).

Investments in the distribution network are initially recorded in intangible assets under

development, during the construction period. When they are completed and in

compliance with ICPC 01, the investments are divided into two parts (bifurcated), the

first of which is recorded in intangible assets in service, related to the amount that will

be amortized during the concession term, and the other is transferred to the

94

concession’s financial assets and will be received as indemnification at the end of the

concession.

Intangible in progress includes inventories of project materials in the amount of

R$184,617 as of June 30, 2014 (R$128,157 as of December 31, 2013), as well as a

provision for inventory devaluation in the amount of R$3,942 (R$3,942 as of December

31, 2013). The Company has not identified indicator of impairment of its other

intangible assets.

In the first semester of 2014, an amount of R$14,801 (R$8,455 in the first semester of

2013) was carried over to intangible assets, as interest capitalization, with an average

capitalization rate of 8.0% p.a.

The infrastructure used by subsidiary Light SESA is associated with the distribution

service, and therefore cannot be removed, disposed of, assigned, conveyed, or

encumbered as mortgage collateral without the prior written authorization of the

granting authority, which authorization, if given, is regulated by Resolution ANEEL No.

20/99.

95

Below is a summary of changes in the intangible assets:

Balance on

12.31.2013Additions Write offs

Inter-account

transfers (a)

Balance on

06.30.2014

IN SERVICE

Concession right of use 6,511,987 - - 75,096 6,587,083

Other 552,062 - - 28,061 580,123

TOTAL INTANGIBLE ASSETS IN SERVICE 7,064,049 - - 103,157 7,167,206

(-) Amortization

Concession right of use (3,490,125) (142,561) - - (3,632,686)

Other (442,331) (18,112) - - (460,443)

TOTAL INTANGIBLE ASSET IN SERVICE/AMORTIZATION (3,932,456) (160,673) - - (4,093,129)

IN PROGRESS

Concession right of use 663,393 286,253 - (167,893) 781,753

Other 167,122 8,173 - (20,350) 154,945

TOTAL INTANGIBLE ASSET IN PROGRESS 830,515 294,426 - (188,243) 936,698

TOTAL 3,962,108 133,753 - (85,086) 4,010,775

Consolidated

(a)

Includes the transfer of R$85,086 to concession’s financial asset, as a result of the split of assets upon

startup, pursuant to IFRIC 12/ICPC 01.

Balance on

12.31.2012Additions Write offs

Inter-account

transfers (a)

Balance on

06.30.2013

IN SERVICE

Concession right of use 6,684,736 - (57,709) 236,461 6,863,488

Other 523,711 - - 37,292 561,003

TOTAL INTANGIBLE ASSETS IN SERVICE 7,208,447 - (57,709) 273,753 7,424,491

(-) Amortization

Concession right of use (3,699,954) (138,507) 50,093 - (3,788,368)

Other (428,162) (16,714) - - (444,876)

TOTAL INTANGIBLE ASSET IN SERVICE/AMORTIZATION (4,128,116) (155,221) 50,093 - (4,233,244)

IN PROGRESS

Concession right of use 465,991 313,098 - (379,590) 399,499

Other 202,316 12,254 - (34,512) 180,058

TOTAL INTANGIBLE ASSET IN PROGRESS 668,307 325,352 - (414,102) 579,557

TOTAL 3,748,638 170,131 (7,616) (140,349) 3,770,804

(a) Includes transfer of R$140,349 to the concession's financial asset arising from the split of assets at start-up, in accordance with IFRIC 12 / ICPC 01.

Consolidated

It is the responsibility of ANEEL to determine the estimated economic useful lives of

each piece of distribution infrastructure assets for pricing purposes, as well as for the

purpose of calculating the amount of the relevant compensation payable upon

96

expiration of the concession term. This estimate, which represents the best estimate

concerning the assets' useful lives, is revised from time to time, being used for

accounting and regulatory purposes.

The Management understands that amortization of the concession's right of use must

be consistent with the return expected on each infrastructure asset, via the applicable

rates. Thus, intangible assets are amortized over the expected length of such return,

limited to the term of the concession.

14. SUPPLIERS

CURRENT 06.30.2014 12.31.2013

Sale in the short-term (1) 115,242 221,388

Electric grid usage charges 28,377 24,857

System service charges 2,215 2,215

Free energy – refund to generation companies 65,680 62,541

Electric power auctions (1) 338,243 146,613

Itaipu Binacional 128,771 114,837

UTE Norte Fluminense 92,399 95,473

Supplies and services 309,949 239,338

TOTAL 1,080,876 907,262

Consolidated

(1)

Includes the unintended exposure of the distribution companies due to unfavorable hydroelectric

conditions, see Note 10.

The Company’s exposure to credit risks related to suppliers is reported in Note 32.

97

15. TAXES PAYABLE

Current Non-current Total Current Non-current Total

TAXES AND CONTRIBUTIONS 107,611 183,867 291,478 115,102 187,640 302,742

ICMS payable 54,635 - 54,635 26,261 - 26,261

Payment in installments - Law 11,941/09 23,552 183,867 207,419 22,708 187,640 210,348

PIS and COFINS payable 16,751 - 16,751 54,106 - 54,106

INSS 4,371 - 4,371 4,566 - 4,566

Other 8,302 - 8,302 7,461 - 7,461 -

INCOME TAX AND SOCIAL CONTRIBUTION 69,775 - 69,775 83,516 - 83,516

Withheld income tax payable 305 - 305 543 - 543

Provision for income tax/social contribution 69,470 - 69,470 82,973 - 82,973

TOTAL 177,386 183,867 361,253 198,618 187,640 386,258

Consolidated

06.30.2014 12.31.2013

On November 11, 2013, Executive Order 627 (MP) was published, revoking the

Transitory Tax Regime and introducing other measures, including: (i) amendments

to Decree-Law 1,598/77, which addresses the income tax of companies, and changes

the legislation related to social contribution on net income; (ii) it establishes that the

change to or the adoption of accounting methods and criteria, through administrative

acts issued based on the authority assigned by commercial law, following

the publication of this Executive Order, will not imply in the calculation of the federal

taxes until the tax law regulates on such matter; (iii) it includes the specific treatment

for the potential taxation of income or dividends; (iv) it includes a provision on the

calculation of interest on equity; and (v) it includes considerations on

investments measured by the equity method.

On May 14, 2014, the Provisional Measure (MP) conversion into Law No. 12,973 was

published in the Federal Official Gazette. The provisions set forth by this Law will

become effective in 2015, however the Law allows taxpayers to opt for their early

adoption in 2014 as a condition to eliminate any tax effects related to dividends paid,

the calculation of interest on equity and the valuation of material investments in

subsidiaries and investees through the equity method of accounting.

98

The Company has analyzed the possible effects of adopting the provisions set forth by

Law No. 12,973 and concluded that the Law will not result in material adjustments to

the interim financial information as of June 30, 2014, nor the financial statements for

the period ended December 31, 2013.

The Company still awaits the regulation of the Law, as well as the disclosure by Brazil’s

Federal Revenue Office of ancillary obligations and the deadline to opt for early

adoption still in 2014.

99

16. LOANS AND FINANCING

Principal Charges Total Principal 06.30.2014 12.31.2013

TN - Par Bond - 1,107 1,107 85,720 86,827 92,351

TN - Surety - Par Bond - - - (66,273) (66,273) (65,884)

TN - Discount Bond - 175 175 59,813 59,988 63,823

TN - Surety - Discount Bond - - - (46,416) (46,416) (46,194)

TN - C. Bond - - - - - 3,941

Merril Lynch 45,151 326 45,477 59,468 104,945 117,468

BNP 105,096 802 105,898 - 105,898 114,593

Citibank - 1,601 1,601 616,700 618,301 422,984

Bank Tokyo - Mitsubishi - 149 149 132,150 132,299 140,715

TOTAL FOREIGN CURRENCY 150,247 4,160 154,407 841,162 995,569 843,797

Eletrobrás 1,218 - 1,218 5,370 6,588 6,642

CCB Bradesco 75,000 23,061 98,061 225,000 323,061 306,493

Working Capital - Santander 80,000 7,440 87,440 - 87,440 82,742

Banco do Brasil - 5,738 5,738 150,000 155,738 155,348

BNDES - FINEM 20,655 74 20,729 - 20,729 62,195

BNDES - direct FINEM 29,652 241 29,893 54,361 84,254 99,140

BNDES - FINEM + 1 29,652 271 29,923 54,361 84,284 99,178

BNDES - direct FINEM PSI 12,680 115 12,795 53,892 66,687 73,044

BNDES - Capex 11/12 Subcred.1 456 4 460 1,710 2,170 2,285

BNDES - Capex 11/12 Subcred.2 34,989 426 35,415 131,208 166,623 184,198

BNDES - Capex 11/12 Subcred.3 42,069 555 42,624 157,760 200,384 221,522

BNDES - Capex 11/12 Subcred.4 42,069 600 42,669 157,242 199,911 221,002

BNDES - Capex 11/12 Subcred.13 - - - 1 1 1

BNDES - Capex 11/12 Subcred.14 - - - 1 1 1

BNDES - Capex 11/12 Subcred.17 4 - 4 16 20 22

BNDES - Capex 11/12 Subcred.18 4 - 4 16 20 22

BNDES - Capex 11/12 Light Energia 6,965 67 7,032 19,155 26,187 29,684

BNDES - PROESCO 1st funding 192 1 193 - 193 308

BNDES - PROESCO 2nd funding 40 - 40 - 40 99

BNDES - PROESCO 3rd funding 99 - 99 - 99 154

BNDES - PROESCO 4th funding 457 2 459 305 764 993

BNDES - PROESCO 5th funding 1,083 5 1,088 722 1,810 2,354

BNDES - PROESCO 6th funding 103 1 104 180 284 335

BNDES - PROESCO 7th funding 75 1 76 125 201 238

BNDES - PROESCO 8th funding 1,082 25 1,107 8,295 9,402 9,366

BNDES - PROESCO 9th funding 1,214 28 1,242 9,310 10,552 373

BNDES - PROESCO 10th funding 1,285 16 1,301 4,713 6,014 5,611

BNDES - PROESCO 11th funding 280 3 283 2,150 2,433 1,611

BNDES - PROESCO 12th funding 443 4 447 3,393 3,840 -

BNDES - PROESCO _ SP Market 1,338 11 1,349 3,123 4,472 5,144

BNDES - PROESCO _ Nova América_Subcred.A 1,032 15 1,047 4,470 5,517 -

BNDES - PROESCO _ Nova América_Subcred.B 139 2 141 1,158 1,299 -

BNDES - PROESCO _ Nova América_Subcred.C 102 1 103 440 543 -

BNDES Olimpíadas - Sub A 769 23 792 8,457 9,249 -

BNDES Olimpíadas - Sub B 769 30 799 8,457 9,256 -

BNDES Olimpíadas - Sub G - 3 3 2,531 2,534 -

BNDES Olimpíadas - Sub C 615 34 649 6,766 7,415 -

FINEP - Innovation and research - 231 231 141,088 141,319 -

RGR - 246 246 - 246 246

Sundry bank guarantees - 1,206 1,206 - 1,206 819

TOTAL DOMESTIC CURRENCY 386,530 40,480 427,010 1,215,776 1,642,786 1,571,170

TOTAL 536,777 44,640 581,417 2,056,938 2,638,355 2,414,967

Current Non-current Total

Consolidated

100

The statement below summarizes the contractual terms and conditions applicable to

our loans and financing as of June 30, 2014:

Financing EntityDate of

signatureCurrency

Interest rate

p.a.Effective rate Beginning Payment End

3TN - Par Bond 04.29.1996 US$ 6.0% 6% 2024 Lump sum 2024

TN - Surety - Par Bond 04.29.1996 US$ U$ Treasury - 2024 Lump sum 2024

TN - Discount Bond 04.29.1996 US$ Libor6M+0.8% 1.19% 2024 Lump sum 2024

TN - Surety - Discount Bond 04.29.1996 US$ U$ Treasury - 2024 Lump sum 2024

TN - C. Bond 04.29.1996 US$ 8.0% 8% 2004 Half-yearly 2014

Merril Lynch 11.07.2011 US$ Libor3M+2.15% 2.37% 2014 Half-yearly 2016

BNP 10.17.2011 EURO 3.98% 3.98% 2014 Lump sum 2014

Citibank 08.23.2012 US$ Libor3M+1.66% 0.02 2017 Semestral 2018

Citibank 02.21.2014 US$ Libor3M+1.51% 0.02 2018 Lump sum 2018

Citibank 10.02.2012 US$ Libor3M+1.59% 0.02 2017 Half-yearly 2018

Bank Tokyo - Mitsubishi 03.11.2013 US$ 2.14% 0.02 2016 Lump sum 2016

Eletrobrás Diverse R$ 5.0% 5% 1988 Monthly and Quarterly 2019

CCB Bradesco 10.18.2007 R$ CDI + 0.85% 0.11 2012 Annual 2017

Working Capital - Santander 09.03.2010 R$ CDI + 1.4% 0.11 2014 Lump sum 2014

Banco do Brasil 02.25.2013 R$ 109.3% of CDI 0.11 2017 Lump sum 2017

BNDES - FINEM 11.05.2007 URTJLP TJLP + 4.3% 0.09 2009 Monthly 2014

BNDES - direct FINEM 11.30.2009 URTJLP TJLP + 2.58% 0.08 2011 Monthly 2017

BNDES - FINEM +1 11.30.2009 URTJLP TJLP + 3.58% 0.09 2011 Monthly 2017

BNDES - direct FINEM PSI 11.30.2009 R$ 4.5% 0.05 2011 Monthly 2019

BNDES - Capex 11/12 Subcred.1 12.06.2011 URTJLP TJLP 5% 2014 Monthly 2019

BNDES - Capex 11/12 Subcred.2 12.06.2011 URTJLP TJLP + 1.81% 6.81% 2014 Monthly 2019

BNDES - Capex 11/12 Subcred.3 12.06.2011 URTJLP TJLP + 2.21% 7.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.3 12.06.2011 URTJLP TJLP + 3.21% 8.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.4 12.06.2011 URTJLP TJLP + 2.21% 7.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.4 12.06.2011 URTJLP TJLP + 3.21% 8.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.13 12.06.2011 URTJLP TJLP + 2.21% 7.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.14 12.06.2011 URTJLP TJLP + 3.21% 8.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.17 12.06.2011 URTJLP TJLP + 2.21% 7.21% 2013 Monthly 2019

BNDES - Capex 11/12 Subcred.18 12.06.2011 URTJLP TJLP + 3.21% 8.21% 2013 Monthly 2019

BNDES - Capex 11/12 Light Energia 04.10.2012 URTJLP TJLP + 1.81% 6.81% 2013 Monthly 2018

BNDES - PROESCO 1st funding 09.16.2008 URTJLP TJLP + 2.51% 7.51% 2009 Monthly 2015

BNDES - PROESCO 2nd funding 04.17.2009 URTJLP TJLP + 2.5% 7.50% 2009 Monthly 2014

BNDES - PROESCO 3rd funding 04.12.2010 R$ 4.5% 4.50% 2010 Monthly 2015

BNDES - PROESCO 3rd funding 04.12.2010 URTJLP TJLP + 2.18% 7.18% 2010 Monthly 2015

BNDES - PROESCO 4th funding 09.15.2010 URTJLP TJLP + 2.05% 7.05% 2011 Monthly 2016

BNDES - PROESCO 4th funding 09.15.2010 R$ 5.5% 5.50% 2011 Monthly 2016

BNDES - PROESCO 5th funding 11.16.2010 URTJLP TJLP + 2.05% 7.05% 2011 Monthly 2016

BNDES - PROESCO 5th funding 11.16.2010 R$ 5.5% 5.50% 2011 Monthly 2016

BNDES - PROESCO 6th funding 07.29.2011 URTJLP TJLP + 1.81% 6.81% 2012 Monthly 2017

BNDES - PROESCO 7th funding 09.27.2011 URTJLP TJLP + 1.81% 6.81% 2012 Monthly 2017

BNDES - PROESCO 8th funding 06.26.2013 URTJLP TJLP + 2.18% 7.18% 2014 Monthly 2023

BNDES - PROESCO 9th funding 06.26.2013 UMBNDES TJLP + 2.18% 7.18% 2014 Monthly 2023

BNDES - PROESCO 10th funding 06.26.2013 UMBNDES TJLP + 2.18% 7.18% 2014 Monthly 2019

BNDES - PROESCO 11th funding 06.26.2013 R$ 3.0% 3% 2014 Monthly 2023

BNDES - PROESCO 12th funding 06.26.2013 R$ 3.0% 3% 2014 Monthly 2023

BNDES - PROESCO SP_Market 01.19.2012 URTJLP TJLP + 1.81% 6.81% 2012 Monthly 2017

BNDES - PROESCO _ Nova América_Subcred.A 12.26.2013 UMBNDES TJLP + 2.18% 7.18% 2014 Monthly 2019

BNDES - PROESCO _ Nova América_Subcred.B 12.26.2013 UMBNDES TJLP + 2.18% 7.18% 2014 Monthly 2019

BNDES - PROESCO _ Nova América_Subcred.C 12.26.2013 R$ 3.5% 3.5% 2014 Monthly 2023

BNDES Olimpíadas - Sub A 12.16.2013 URTJLP TJLP + 2.58% 7.58% 2015 Monthly 2020

BNDES Olimpíadas - Sub B 12.16.2013 URTJLP TJLP + 3.58% 8.58% 2015 Monthly 2020

BNDES Olimpíadas - Sub G 12.16.2013 R$ 3.50% 3.5% 2016 Monthly 2023

BNDES Olimpíadas - Sub C 12.16.2013 R$ SELIC + 2.58% 12.63% 2015 Monthly 2020

FINEP - Innovation and research 04.16.2014 R$ 4.0% 4.0% 2016 Monthly 2022

Principal amortization

On February 21, 2014, the subsidiary Light SESA contracted a debt in USD from

Citibank, with swap to CDI, totaling R$235,750.

101

On March 13, 2014, R$11,345 was received, regarding the Contract BNDES - PROESCO

to finance the projects of the subsidiary Light Esco.

On April 28, 2014, R$28,364 was received, regarding the Contract BNDES Olimpíadas of

the subsidiary Light SESA.

On May 16, 2014, R$141,088 was received, regarding the first installment of the credit

facility agreement between Financiadora de Estudos e Projetos – FINEP and the

subsidiary Light SESA

In addition to the collaterals indicated above, loans are guaranteed by receivables in

the approximate amount of R$63,005 (R$100,070 on December 31, 2013).

On June 30, 2014, Light S.A. had suretyships or corporate guarantees, issued on behalf

of its subsidiaries, jointly-owned subsidiaries or associated companies, totaling

R$5,881,544 (R$5,058,793 on December 31, 2013).

The principal of consolidated loans and financing, classified in non-current liabilities,

matures as follows (excluding financial charges) on June 30, 2014:

Local

Currency

Foreign

CurrencyTotal

2015 181,264 19,823 201,087

2016 302,242 171,795 474,037

2017 419,688 264,300 683,988

2018 168,566 352,400 520,966

2019 72,302 - 72,302

after 2019 71,714 32,844 104,558

TOTAL 1,215,776 841,162 2,056,938

Consolidated

Below, the consolidated loans and financing breakdown for the periods:

102

Principal Charges Total

BALANCE ON 12.31.2013 2,392,169 22,798 2,414,967

Loans and financing 428,044 - 428,044

Monetary and exchange variation (74,821) - (74,821)

Financial charges accrued - 82,445 82,445

Financial charges paid - (64,012) (64,012)

Financing amortization (152,476) - (152,476)

Funding cost amortization 128 - 128

Financial charges capitalized to the principal 671 (671) -

Charges capitalized to intangible assets/property, plant and

equipment- 4,080 4,080

BALANCE ON 06.30.2014 2,593,715 44,640 2,638,355

Consolidated

Principal Charges Total

BALANCE ON 12.31.2012 2,247,233 16,198 2,263,431

Loans and financing 833,523 - 833,523

Monetary and exchange variation 62,892 - 62,892

Financial charges accrued - 101,575 101,575

Financial charges paid - (69,473) (69,473)

Financing amortization (612,724) - (612,724)

Funding cost amortization 125 - 125

Financial charges capitalized to the principal 80 (80) - Charges capitalized to intangible assets/property, plant and

equipment- (8,780) (8,780)

BALANCE ON 06.30.2013 2,531,129 39,440 2,570,569

Consolidated

Total principal amount is stated net of loans-related costs, as provided for in CVM

Resolution No. 649/10, which approved technical pronouncement CPC 08 (R1) -

Transaction Costs and Premium on the Issue of Marketable Securities.

The Company’s exposure to interest rate, foreign currency and liquidity risks related to

loans and financing is reported in Note 32.

Covenants

103

The Company has clauses that can cause the early maturity of debt in certain loan and

financing agreements, including cross default. Bradesco’s bank credit certificates, loans

with Banco Santander, Merril Lynch, BNP, Citibank, Bank Tokyo - Mitsubishi and with

BNDES, classified as current and non-current, require that the Company should

maintain certain debt ratios and covenants. In the second quarter of 2014, the

Company was in conformity with all required debt covenants.

17. DEBENTURES

Principal Charges Total Principal Charges Total 06.30.2014 12.31.2013

Debentures 4th Issue (Light SESA) 18 - 18 - - - 18 27

Debentures 7th Issue (Light SESA) 325,000 12,077 337,077 323,668 - 323,668 660,745 659,916

Debentures 8th Issue (Light SESA) 39,148 3,638 42,786 430,485 - 430,485 473,271 473,157

Debentures 9th Issue Series A (Light SESA) - 14,123 14,123 995,663 - 995,663 1,009,786 1,007,750

Debentures 9th Issue Series B (Light SESA) - 4,401 4,401 610,287 25,854 636,141 640,542 614,223

Debentures 10th Issue (Light SESA) - 11,674 11,674 744,297 - 744,297 755,971 -

Debentures 1st Issue (Light Energia) 85,000 4,234 89,234 84,698 - 84,698 173,932 175,514

Debentures 2nd Issue (Light Energia) - 16,971 16,971 423,775 - 423,775 440,746 439,675

Debentures 3rd Issue (Light Energia) 2,498 232 2,730 27,364 - 27,364 30,094 30,082

TOTAL 451,664 67,350 519,014 3,640,237 25,854 3,666,091 4,185,105 3,400,344

Current Non-current

Consolidated

Total

Below, contractual conditions of debentures on a consolidated basis on June 30, 2014:

Financing Entity Date of signature Currency Interest Rate p.a. Effective Rate Beginning Payment End

Debentures 4th Issue (Light SESA) 06.30.2005 URTJLP TJLP + 4% 9.00% 2009 Monthly 2015

Debentures 7th Issue (Light SESA) 05.02.2011 R$ CDI + 1.35% 11.16% 2015 Annual 2016

Debentures 8th Issue (Light SESA) 08.24.2012 R$ CDI + 1.18% 10.97% 2015 Annual 2026

Debentures 9th Issue Series A (Light SESA) 06.15.2013 R$ CDI + 1.15% 10.94% 2018 Half-yearly 2021

Debentures 9th Issue Series B (Light SESA) 06.15.2013 R$ IPCA + 5.74% 12.48% 2020 Half-yearly 2023

Debentures 10th Issue (Light SESA) 04.30.2014 R$ 115% CDI 11.21% 2018 Annual 2020

Debentures 1st Issue (Light Energia) 04.10.2011 R$ CDI + 1.45% 11.27% 2015 Annual 2016

Debentures 2nd Issue (Light Energia) 12.29.2011 R$ CDI + 1.18% 10.97% 2016 Annual 2019

Debentures 3rd Issue (Light Energia) 08.24.2012 R$ CDI + 1.18% 10.97% 2015 Annual 2026

Principal Amortization

On May 13, 2014, was closed to non-convertible public offering, pursuant to CVM Rule

No. 476, for the 10th issuance of non-convertible, unsecured debentures by the

subsidiary Light SESA, with personal guarantee, in a single series, totaling R$750,000.

104

Total principal amount is reported net of debentures issue costs, as provided for in

CVM Resolution No. 649/10, which approved the technical pronouncement CPC 08 (R1)

- Transaction Costs and Premium on the Issue of Marketable Securities.

Installments related to principal of debentures, classified in non-current liabilities, have

the following maturities (financial charges not included) on June 30, 2014:

06.30.2014

2016 555,812

2017 147,669

2018 640,417

2019 645,843

after 2019 1,650,496

TOTAL 3,640,237

Below, debentures breakdown on a consolidated basis in the periods:

Principal Charges Total

BALANCE ON 12.31.2013 3,349,333 51,011 3,400,344

Debentures issued 750,000 - 750,000

Financial charges accrued - 167,825 167,825

Financial charges paid - (166,692) (166,692)

Debenture amortization (12) - (12)

Transfer to charges (2,768) 2,768 -

Monetary variation - 25,854 25,854

Funding cost (5,830) - (5,830)

Amortization of funding costs 1,178 - 1,178

Charges capitalized to intangible assets/property, plant and equipment - 12,438 12,438

BALANCE ON 06.30.2014 4,091,901 93,204 4,185,105

Consolidated

105

Principal Charges Total

BALANCE ON 12.31.2012 1,944,302 29,752 1,974,054

Debentures issued 1,600,000 - 1,600,000

Financial charges accrued - 78,475 78,475

Financial charges paid - (77,777) (77,777)

Debenture amortization (45,412) - (45,412)

Funding cost 1,385 - 1,385

BALANCE ON 06.30.2013 3,500,275 30,450 3,530,725

Consolidated

The Company’s exposure to interest rate and liquidity risks related to debentures is

reported in Note 32.

Covenants

The Company has clauses that can cause the early maturity of debt in certain loan and

financing agreements, including cross default. The 7th, 8th, 9th, and 10th issue of

debentures of the subsidiary Light SESA and the 1st, 2nd and 3rd issue of debentures of

the subsidiary Light Energia require the maintenance of indebtedness indexes and

coverage of interest rates. In the second quarter of 2014, the Company complied with

all the covenants required.

18. REGULATORY CHARGES

CURRENT 06.30.2014 12.31.2013

Energy development account quota – CDE 10,168 5,909

Global reversal reserve quota – RGR 771 1,428

Charges for capacity and emergency acquisition 55,547 55,547

TOTAL 66,486 62,884

Consolidated

106

19. PROVISIONS

The Company and its subsidiaries are parties in tax, labor and civil lawsuits and

regulatory proceedings in several courts. Management periodically assesses the risks

of contingencies related to these proceedings, and based on the legal counsel’s

opinion it records a provision when unfavorable decisions are probable and whose

amounts are quantifiable.

Below is the balance of provisions, including provisions for risks and provisions for success fees:

TOTAL PROVISIONS Provision Success fees Total Provision Success fees Total

Labor 132,696 - 132,696 133,383 - 133,383

Civil 138,004 23,370 161,374 145,189 20,946 166,135

Tax 190,985 25,213 216,198 201,774 22,006 223,780

Other 14,530 - 14,530 20,357 - 20,357

TOTAL 476,215 48,583 524,798 500,703 42,952 543,655

06.30.2014 12.31.2013

Provisions for risks:

Provisions for risks and changes in the periods are as follows:

PROVISIONS FOR PROBABLE LOSSES Labor Civil Tax Other Total

BALANCE ON 12.31.2013 133,383 145,189 201,774 20,357 500,703

Additions 9,535 23,767 - 5,330 38,632

Adjustments - 10,794 3,668 645 15,107

Transfers - (7,589) 18,536 (10,947) -

Write-offs/payments (1,307) (33,430) - (855) (35,592)

Write-offs/reversals (8,915) (727) (32,993) - (42,635)

BALANCE ON 06.30.2014 132,696 138,004 190,985 14,530 476,215

Judicial deposits on 06.30.2014 28,286 3,506 25,954 - 57,746

107

PROVISIONS FOR PROBABLE LOSSES Labor Civil Tax Other Total

BALANCE ON 12.31.2012 179,082 183,859 197,032 23,179 583,152

Additions 4,270 26,409 1,704 1,097 33,480

Adjustments - 7,144 18,981 3,330 29,455

Write-offs/payments (2,251) (28,545) - (7,050) (37,846)

Write-offs/reversals (2,540) (4,187) - (1,104) (7,831)

BALANCE ON 06.30.2013 178,561 184,680 217,717 19,452 600,410

(a) The total amount of R$243,792 is recorded under escrow deposits on June 30, 2014 (R$263,316 on December 31, 2013), of which R$57,746 (R$91,101 on December 31, 2013) refer to claims with recorded provision. Other deposits refer to lawsuits whose likelihood of loss is possible or remote. The balance of court deposits are as follows:

06.30.2014 12.31.2013

Labor 70,806 73,717

Civil 87,330 86,549

Tax 85,656 103,050

Total 243,792 263,316

CONSOLIDATED

Provision for labor proceedings:

06.30.2014 12.31.2013

Own employees 103,907 102,342

Outsourced employees 28,789 31,041

TOTAL 132,696 133,383

Accrued Amount (Probable Loss)

These labor proceedings mainly involve the following matters: overtime, hazardous

work wage premium, equal pay, pain and suffering, difference of 40% fine of FGTS

(Government Severance Indemnity Fund for Employees) derived from the adjustment

due to understated inflation and occupational accident – civil liability.

108

Provision for civil proceedings:

06.30.2014 12.31.2013

Civil proceedings (a) 95,780 114,322

Special civil court (b) 17,338 17,107

"Cruzado" Plan (c) 24,886 13,760

TOTAL 138,004 145,189

Accrued Amount (Probable Loss)

(a) The Provision for civil proceedings comprises lawsuits in which the Company and

its subsidiaries are defendants and it is probable the claim will result in a loss in

the opinion of the respective attorneys. The claims mainly involve alleged moral

and property damage due to the Company’s ostensive behavior fighting

irregularities in the network, as well as consumers challenging the amounts paid.

(b) Lawsuits in the Special Civil Court are mostly related to matters regarding

consumer relations, such as improper collection, undue power cut, power cut

due to delinquency, network problems, various irregularities, bill complaints,

meter complaints and problems with ownership transfer. There is a limit of 40

minimum monthly wages for claims under procedural progress at the Special Civil

Court. Accruals are based on the separation of the six main reasons for

complaints for the Company and its subsidiaries – which represent 72.4% of the

lawsuits filed; a block with all the reasons related to accidents; and a block for

other reasons. For the six main offenders and other reasons block, an adjusted

average is used – considering 95% of the sample i.e. excluding the 2.5% highest

and lowest amounts - the average of the last 12 months of condemnation

amount. In the case of the accident block, the average of the last 12 months of

condemnation amount is considered.

(c) Lawsuits brought against the subsidiary Light SESA related to the increase in

electricity tariffs approved by Ordinances No. 38 of February 27, 1986 and No. 45

109

of March 4, 1986, issued by the extinct National Department of Water

and Electricity (DNAEE), which contradicted the Decree-Law No. 2,283/86

(Cruzado monetary plan decree), which provided for frozen prices. The plaintiffs

plead the refund of amounts allegedly overpaid for electricity bills, when Light

SESA’s tariffs increased in the period when prices were frozen.

Provision for tax proceedings:

06.30.2014 12.31.2013

INSS – tax deficiency note (b) 13,037 45,761

INSS – quarterly 9,538 9,367

ICMS (a) 131,832 129,782

Other 36,578 16,864

TOTAL 190,985 201,774

Accrued Amount (Probable Loss)

(a) The provision recorded mainly refers to litigation on the application of State Law

nº 3,188/99, which restricted the appropriation of ICMS credits incurred on the

acquisition of assets destined to fixed assets, requiring that credit was deferred

by installments, while this restriction was not provided for in the Supplementary

Law nº 87/96.

(b) The subsidiary Light SESA reversed, in June 2014, a provision totaling R$32,993,

in view of its legal advisors’ re-evaluation of chances of loss of lawsuit,

considering court decisions, changing it from likely to possible. The lawsuit refers

to a tax foreclosure arguing the pension plan contribution supposedly levied on

the payment of profit sharing (PLR) by installments and motion to stay

execution) is pending judgment.

110

Other Provisions:

The Company will now discuss regulatory contingencies of its subsidiaries in connection

with administrative issues pending with ANEEL:

• Deficiency Notice ANEEL No. 071/2011 - SFE – This deficiency notice was issued

on November 30th, 2011 under the argument that any failure to comply with

Module 8 – PRODIST (Procedures for the Distribution of Electric Power at the

National Electric System), more specifically referring to the process of data

collection and calculation of individual and collective continuity indicators, as

well as financial indemnity owed to consumers whose individual continuity

indicators were infringed. ANEEL applied a fine in the relevant amount of

R$17,719. Subsidiary Light SESA filed an appeal on February 6, 2012, in view of

excessive penalty applied, contesting among the facts, lack of reasoning and

proportionality of dosimetry applied when calculating the fine. In view of the

maintenance of excessive penalty applied and the chances of partial success of

appeal filed, Light SESA accrued R$6,658 (R$6,339 on December 31, 2013),

through report of its legal counsels and awaits decision of ANEEL;

• Deficiency Notice No. 0004/2014 - SFE. The subsidiary Light SESA was given the

Deficiency Notice on January 15, 2014, under the argument of failure to comply

with the aspects of service provision and results of the maintenance plan of the

underground system of 2012, in addition to the aspects of underground system

itself. The fine is of R$2,171. Light SESA filed an appeal on January 24, 2014.

The Company has made a provision of R$2,260 and awaits decision of Aneel.

Provisions for success fees:

Management periodically reassesses lawsuits with success fees for legal advisors and,

based on the opinion of its legal counsel, records provisions for lawsuits whose

likelihood of loss was considered possible or remote. Below is a chart with the position

and changes in the periods.

111

PROVISIONS FOR SUCCESS FEE Civil Tax Total

BALANCE ON 12.31.2013 20,946 22,006 42,952

Possible loss 2,256 3,220 5,476

Remote loss 168 (13) 155

BALANCE ON 06.30.2014 23,370 25,213 48,583

PROVISIONS FOR SUCCESS FEE Civil Tax Total

BALANCE ON 12.31.2012 14,418 8,459 22,877

Possible loss 53 196 249

BALANCE ON 06.30.2013 14,471 8,655 23,126

20. CONTINGENCIES

The Company is a party to lawsuits that Management believes that risk of loss are less

than probable, based on the opinion of its legal counsels. Therefore, no provision was

established. Contingencies with possible loss are broken down as follows:

BalanceNumber of

ProceedingsBalance

Number of

Proceedings

Civil 307,274 14,191 336,113 14,035

Labor 263,766 959 281,071 1,033

Tax 3,925,300 499 3,609,700 439

TOTAL 4,496,340 15,649 4,226,884 15,507

06.30.2014 12.31.2013

Consolidated

112

The main reasons for litigations are listed below:

a) Civil

•••• Irregularities – Subsidiary Light SESA has several lawsuits where irregularities

are discussed, arising from commercial losses due to irregular connections,

clandestine connections, meters alteration and equipment theft, known in

Portuguese as “gatos”. Most of the litigations are based on the evidence of

irregularity and amounts charged by the concessionaire in view of such

evidence. The amount currently assessed represented by these claims is

R$36,267 (R$38,856 on December 31, 2013).

•••• Amounts charged and bills – Many litigations are currently in progress and

discuss amounts charged by the subsidiary Light SESA for services provided,

such as demand amounts, consumption amounts, financial charges, rates,

insurances, among other. The amount currently assessed represented by these

claims is R$71,881 (R$48,399 on December 31, 2013).

•••• Accidents – Subsidiary Light SESA is defendant in lawsuits filed by victims

and/or their successors, regarding accidents with Light’s electric power grid

and/or service provision for several causes. The amount currently assessed

represented by these claims is R$31,217 (R$30,391 on December 31, 2013).

•••• Discontinuance and suspension – There are several lawsuits in progress to

discuss service discontinuance, whether by fortuitous cases or events of force

majeure, or for purposes of intervention in the electrical system, among other

reasons, and also service suspension, whether for indebtedness, denied access

or meters replacement, among other facts for suspension. The amount

currently assessed represented by these claims is R$15,617 (R$16,076 on

December 31, 2013).

113

•••• Equipment and network – Subsidiary Light SESA has litigations due to electronic

meters used to measure energy consumption. Litigations address several

themes, such as meter functionality, approval by metrological agency, among

others and, also, litigations about its network, due to its extension, removal or

even financial contribution of the client to install the network. The amount

currently assessed represented by these claims is R$7,586 (R$7,210 on

December 31, 2013).

•••• Regarding civil litigations, we point out the lawsuit filed in the first quarter of

2012 by Companhia Siderúrgica Nacional - CSN against subsidiary Light SESA,

where CSN claims approximately R$100,000 as indemnity for service

discontinuance occurred at its Consumer Unit of Volta Redonda. We point out

that out of amount claimed, R$88,700 only refer to the service discontinuance

occurred on November 10th, 2009, affecting 40% of Brazilian territory and over

90% of Paraguay, which only evidences that causes go beyond Light SESA’s

scope of operation, as electric power distribution company. Moreover, the ONS

report concluded that the origin and causes of this service discontinuance was

Furnas’ responsibility. Thus, the Company’s exposure to risk is R$35,531

(R$35,531 on December 31, 2013).

•••• The subsidiary Light SESA entered into an agreement with a plaintiff in a

proceeding related to the Municipal Real Estate Tax (IPTU), in which the

opposing party’s attorney is pleading the payment of court costs and attorneys’

fees. The Company understands that these fees are not due. The amount

currently quantifiable is R$13,153 (R$13,153 as of December 31, 2013).

b) Tax

•••• ICMS Commercial Losses (Tax Deficiency Notices Nos. 03326780-8, 04011949-7

and 04.028.752-6) - These refer to collecting ICMS, Government Fund to

Combat Poverty - FECP and penalty (from Jan/99 to Dec/2003 and Jan/06 to

114

Dec/10) supposedly incurring on amounts related to energy losses in

operations preceding the distribution, carried out between generation and

distribution companies. The subsidiary Light SESA objected these tax

assessments. Two tax deficiency notices are pending judgments in the lower

administrative court and other two notices received unfavorable decisions in

the lower administrative court, against which Light SESA filed voluntary

appeals. The amount currently assessed represented by these claims totaled

R$1,442,800 (R$1,392,200 on December 31, 2013).

•••• IRRF (withholding income tax over dividends) (Proceedings

16682.721195/2011-02 and 16682.720657/2012-47) – Tax deficiency notice

filed against subsidiary Light SESA in 2011 to collect withholding income tax

(IRRF) over amounts paid by Light SESA in 2007 as dividends, under the

allegation that these derived from no profit, originated from regular recording

of deferred tax assets in the income statement, then, characterized as

payments without cause subject to tax levy. In view of regular standing of

accounting, corporate and tax procedures adopted, Light SESA filed objection,

which was deemed groundless. The Company filed a Voluntary Appeal, which is

pending judgment. On July 6th, 2012, Light SESA received another tax deficiency

notice on this matter, now concerning the amounts paid in 2008, against which

submitted a statement of discontentment, under the alleged defense of

previous deficiency notice, which was dismissed. The Company awaits the

publication of decision, which on July 16, 2014, granted relief to the Voluntary

Appeal filed for the second tax deficiency notice. The amount currently

assessed represented by first deficiency notice is R$383,200 (R$375,300 on

December 31, 2013) and R$240,400 for the second deficiency notice

(R$235,400 on December 31, 2013).

•••• LIR/LOI - IRPJ/CSLL – (Proceedings 16682.720216/2010-83, 15374-

001.757/2008-13 and 16682.721091/2011-90 and 16682.720203/2014-38) –

The subsidiary Light SESA filed a writ of mandamus mainly discussing the

115

taxation of profit of the subsidiaries LIR and LOI abroad, more specifically, it

advocated that income tax and social contribution should be levied on profit

only, not on equity in the earnings of subsidiaries (a broader concept that

includes exchange variations as provided for by IN 213/02). To benefit from

REFIS program, Light SESA has fully discontinue the writ of mandamus, which,

due to that fact, an unfavorable final decision was rendered to Light SESA.

Accordingly, the procedure has been changed to tax equity in the earnings of

subsidiaries, in accordance with the decision of the writ of mandamus. Tax

authorities disagreed with this procedure and issued a deficiency notice to

Light SESA for the fiscal years 2004 to 2008, requiring taxation on profit only.

For 2004, a tax foreclosure case has been filed and is pending judgment of the

motion to stay execution. For 2005, the voluntary appeal was sustained and the

tax deficiency notice was canceled. Federal government’s special appeal is

pending judgment. For the amounts relating to 2006 to 2008, the Company is

awaiting the decision of the Voluntary Appeals by the Administrative Tax

Appeals Council (CARF). In April, 2014, a Light SESA was assessed in relation to

2009 and filed objection. According to the legal counsels, the claim may

possibly result in a loss involving the amount of R$544,000 (R$443,100 on

December 31, 2013).

•••• Normative Instruction (NI) No. 86 (Proceeding 10707000751/2007-15 - (2003

through 2005) - This deficiency notice was issued to assess a fine on the

Company for alleged failure to make electronic filings as required by NI. No.

86/2001, for calendar years 2003 through 2005. The voluntary appeal filed by

subsidiary Light SESA was dismissed, a special appeal was filed and also

deemed groundless. Motion for clarification of judgment is pending. The

amount currently assessed represented by this claim is R$318,800 (R$309,500

on December 31, 2013).

•••• Inspection Fee for Occupancy and Permanence in Zones, Routes and Public

Areas (TFOP). The subsidiary Light SESA has several lawsuits discussing TFOP,

116

issued by the municipal government of Barra Mansa. Light SESA filed motion to

dismiss the execution and at the Federal Supreme Court– STF obtained

injunction sentencing the suspension of collections until judgment of

Extraordinary Appeal n° 640286. The Federal Supreme Court rendered decision

granting relief to LIGHT’s extraordinary appeal. The municipality of Barra

Mansa filed appeal against such decision, which is pending judgment. The

amount currently assessed represented by this claim is R$256,497 (R$256,497

on December 31, 2013).

•••• ICMS Rheem (Proceeding E-04/892.090/99) - This is a tax deficiency notice to

collect ICMS (State VAT), in view of subsidiary Light SESA's utilization of ICMS

accumulated credits of Rheem Embalagens Ltda. to acquire inputs and raw

material in the state of Rio de Janeiro. Objection was deemed groundless.

Voluntary Appeal was filed which was rejected. Light's appeal was also filed

which was rejected. Motion for clarification of judgment is pending. The

amount currently assessed represented by this claim is R$145,900 (R$145,900

as of December 31, 2013).

•••• ICMS on low-income subsidy (Proceedings E-34/059.150/2004 and E-

04/054.753/2011) - Tax Deficiency Notices drawn up to charge ICMS (State

VAT) on amounts of economic subsidy to low-income consumers of electric

power arising from Global Reversal Reserve Funding. In the first case, Light

SESA's objection was deemed groundless. An appeal was lodged by subsidiary

Light SESA with the Taxpayers Council, which was partially sustained to remove

taxation on consumption up to 50 kWh (exempt from tax). In the second case,

Light SESA filed an objection, which was deemed groundless. An appeal was

lodged with the Taxpayers Council, and decision granted relief to Light SESA’s

appeal. The amount currently represented by the first claim is R$95,300

(R$95,300 as of December 31, 2013) and the second claim is R$36,400

(R$35,000 as of December 31, 2013).

117

•••• Decisions (71 lawsuits) were rendered by the Federal Revenue Service to deny

the approval to several offset requests made by subsidiary Light SESA, for the

use of PIS, COFINS, IRPJ and CSLL tax credits, under the argument that such

credits would be undue or insufficient to cover the debts against which they

were opposed. The subsidiary Light SESA filed Declaration of non-conformity

regarding the aforementioned Decision, which are pending judgment. Current

amount is at R$245,800 (R$143,900 on December 31, 2013).

c) Labor

The main labor claims involve: equal pay and related accretions, overtime and related

accretions, occupational accident, hazardous work wage premium and pay and

suffering.

Each claim is detailed below:

•••• Equal pay and related accretions – the claimants intend to receive wage

differences alleging that they exercise or exercised activities identical to other

employees’ or former employees’ activities, with the same productivity and

technical perfection, but they received different wages. The amount currently

assessed represented by this claim is R$17,998 (R$18,845 on December 31,

2013).

•••• Overtime and related accretions – the claimants intend to receive overtime

pay, alleging that they performed their activities beyond standard working

hours and overtime has not been paid or offset. The amount currently assessed

represented by this claim is R$57,657 (R$61,192 on December 31, 2013).

•••• Occupational accident – employees/former employees or service providers

involved in occupational accidents attribute responsibility to Light, claiming

118

indemnifications and life annuity. The amount currently assessed represented

by this claim is R$16,887 (R$16,492 on December 31, 2013).

•••• Risk premium difference – in the past, the Company used to pay a 30%

difference of base salary up to April 2012, as per 2011/2012 Collective

Bargaining Agreement. The amount currently assessed represented by this

claim is R$56,632 (R$57,001 on December 31, 2013).

•••• Pain and suffering – claim based on several grounds: persecution, moral

harassment, lack of security (operations in risk area) and others. The amount

currently assessed represented by this claim is R$35,889 (R$38,225 on

December 31, 2013).

Below, we point out lawsuits in progress, whose chances of losses are remote, with

relevant amounts under dispute, which, in case of unfavorable decision, may impact

the Company, its subsidiaries and jointly-owned subsidiaries:

a) Tax

•••• PASEP/PIS (Proceeding 15374002130/2006-18) – It refers to the Offset

Disallowance made by the Company of PASEP credits with PIS debts. The

Company’s objection was deemed groundless. Voluntary Appeal was filed.

CARF rendered decision sentencing the case should remand to the lower court

to determine the credit in dispute. The amount currently assessed represented

by this claim is R$276,400 (R$272,400 on December 31, 2013).

•••• IRRF - Disallowance of tax offset - LIR/LOI (Proceeding 10768.002.435/2004-11)

- There is no confirmation from Brazilian Tax Authority regarding the tax offsets

related to withholding income tax credits on financial investments and

withholding income tax credits on the payment of energy accounts by

government bodies, offset due to outstanding balance of Corporate Income Tax

119

in the reference year of 2002. The motion to disagree filed by Light SESA

subsidiary was deemed groundless. The voluntary appeal lodged by Light SESA

is pending judgment. In view of the favorable decision received in August 2012

referring to the proceeding 18471002113/2004-09, which directly impacts this

case, the legal counsels changed the chances of losses to remote. The amount

currently assessed represented by this claim is R$216,000 (R$211,800 on

December 31, 2013).

The Company does not consider the other proceedings to be individually significant for disclosure

purposes.

21. POST-EMPLOYMENT BENEFITS

Below, a summary of the Company's liabilities involving pension plan benefits as stated on its balance sheet:

Current Non-current Total Current Non-current Total

Contractual debt with pension fund - - - 1,224,666 - 1,224,666

Other 131 - 131 70 - 70

TOTAL 131 - 131 1,224,736 - 1,224,736

12.31.201306.30.2014

Consolidated

On February 13th, 2014, the Company settled the Private Instruments of Termination

of Agreements for Resolving Technical Deficits and Refinancing Unamortized Reserves

with Braslight, for R$1,228,205, including the restatement by the CDI rate.

Below, contractual liabilities breakdown in the periods:

120

Current Non-current Total

BALANCE ON 12.31.2013 1,224,666 - 1,224,666

Restatements in profit (loss) in the period 3,539 - 3,539

Amortizations in the period (1,228,205) - (1,228,205)

BALANCE ON 06.30.2014 - - -

Consolidated

Current Non-current Total

BALANCE ON 12.31.2012 114,835 939,863 1,054,698

Amortizations in the period (57,922) - (57,922)

Restatements in profit (loss) in the period 41,654 28,202 69,856

Transfer to current 18,729 (18,729) -

BALANCE ON 06.30.2013 117,296 949,336 1,066,632

Consolidated

22. OTHER PAYABLES

Current Non-current Total Current Non-current Total

Advances from clients 902 - 902 1,319 - 1,319

Compensation for use of water resources 3,034 - 3,034 3,837 - 3,837

Energy Research Company – EPE 1,491 - 1,491 1,789 - 1,789

National Scientific and Technological Development Fund – FNDCT 511 - 511 2,515 - 2,515

Energy Efficiency Program – PEE 74,387 - 74,387 65,533 - 65,533

Research and Development Program – R&D 29,629 - 29,629 25,001 - 25,001

Public lighting fee 48,774 - 48,774 47,391 - 47,391

Reserve for reversal - 70,320 70,320 - 70,320 70,320

Other (a) 42,435 5,774 48,209 36,482 5,770 42,252

TOTAL 201,163 76,094 277,257 183,867 76,090 259,957

Consolidated

06.30.2014 12.31.2013

(a)

Related to other sundry payables

121

23. RELATED-PARTY TRANSACTIONS

On June 30, 2014, Light S.A. pertained to the controlling group Companhia Energética

de Minas Gerais – CEMIG, Luce Empreendimentos e Participações S.A. and Rio Minas

Energia Participações S.A (RME) – company controlled by Redentor Energia S.A.

Interest in subsidiaries and jointly-owned subsidiaries is outlined in the Note 2.

Below, a summary of related-party transactions occurred in the periods stated:

01.01.2014 to

06.30.2014

01.01.2013 to

06.30.2013

Asset Liability Asset LiabilityRevenue

(Expenses)

Revenue

(Expenses)

(A)Purchase of electric power

Light SESA x CEMIG- 526 - 5,337 (6,752) (25,252)

(B)Purchase of electric power

Light SESA x CEMIG- 222 - 282 (1,178) (505)

(C)Sale of electric power

Light Energia x CEMIG- - 772 - - 3,083

(D)Charge for the use of the

system Light SESA x CEMIG70 - 171 - 356 578

(E)Charge for the use of the

network Light

SESA x CEMIG

- 414 - 378 (1,823) (1,567)

(F)Charge for the use of network

Light Energia x CEMIG10 - 11 - 62 62

(G)Purchase of electric power

Light Energia x Lightger - - - - (8,126) (7,925)

(H)Sale of electric power

Light Ger x CEMIG- 1,140 - 1,484 (8,586) (7,856)

(I)Charge for the use of the

network Light

SESA x Light GER

25 - 25 - 152 130

(J)Consulting service

Light SESA x Axxiom- 491 - 5,287 (2,256) (3,214)

(K)Service rendering Light

Energia x Lightger- - - - 1,204 2,876

(L)Sale of electric power

Light Energia x Lightcom182,370 - 36,174 - 313,050 -

(M) Pension plan liabilities - 131 - 1,224,736 (3,539) (69,856)

(N) Ativas Data Center - 1,146 - 637 (3,031) (69,856)

06.30.2014 12.31.2013

Reference

122

i. Agreements executed with related parties:

(A) Strategic agreement - Purchase of electric power between Light SESA and CEMIG.

Balance sheet groups: Trade payables x Trade receivables

Relationship: CEMIG (party of the controlling group)

Original amount: R$614,049

Duration: Jan/2006 to Dec/2038

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: 30% of remaining balance

Remaining balance: R$300,672

(B) Strategic agreement - Purchase of electric power between Light SESA and CEMIG

Balance sheet groups: Trade payables x Trade receivables

Relationship: CEMIG (party of the controlling group)

Original amount: R$37,600

Duration: Jan/2010 to Dec/2039

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: 30% of remaining balance

Remaining balance: R$61,742

(C) Strategic agreement - Sale of electric power between Light Energia and CEMIG

Balance sheet groups: Trade payables x Trade receivables

Relationship: CEMIG (party of the controlling group)

Original amount: R$156,239

Duration: Jan/2005 to Dec/2013

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: N/A

Remaining balance: R$0

123

(D) Strategic agreement – Collection of distribution system usage charges between Light SESA and CEMIG

Balance sheet groups: Trade receivables x Trade payables

Relationship: CEMIG (party of the controlling group)

Original amount: N/A

Duration: as of Nov/2003

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: N/A

Remaining balance: R$70

(E) Strategic agreement – Commitment to the basic electric network usage charges between Light SESA and CEMIG

Balance sheet groups: Trade payables x Trade receivables

Relationship: CEMIG (party of the controlling group)

Original amount: N/A

Duration: as of Dec/2002

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: N/A

Remaining balance: R$414

(F) Strategic agreement - Commitment to the basic electric network usage charges between Light Energia and CEMIG

Balance sheet groups: Trade payables x Trade receivables

Relationship: CEMIG (party of the controlling group)

Original amount: N/A

Duration: as of Dec/2002

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: N/A

Remaining balance: R$ 10

124

(G) Strategic agreement – Purchase of electric power between Light Energia and Lightger

Balance sheet groups: Trade payables x Trade receivables

Relationship: Lightger (under common control)

Original amount: R$217,213

Duration: Dec/2010 to Jun/2028

Terms of agreement: market price

Conditions of termination or expiration: N/A

Remaining balance: R$0

(H) Strategic agreement - Sale of electric power between Lightger and CEMIG

Balance sheet groups: Trade payables x Trade receivables

Relationship: CEMIG (party of the controlling group)

Original amount: R$208,818

Duration: Dec/2010 to Jun/2028

Terms of agreement: Price established in the regulated market

Conditions of termination or expiration: N/A

Remaining balance: R$1,140

125

(I) Strategic agreement – Commitment to the basic electric network usage charges between Light SESA and Lightger

Balance sheet groups: Trade receivables x Trade payables

Relationship: Lightger (under common control)

Original amount: N/A

Duration: as of Dec/2010. Undetermined duration.

Terms of agreement: regulated market price

Conditions of termination or expiration: N/A

Remaining balance: R$25

(J) Strategic agreement – Consulting services between Light SESA and Axxiom

Balance sheet groups: Other payables

Relationship: Light Axxiom (under common control)

Original amount: N/A

Duration: as of Dec/2010. Undetermined maturity.

Conditions of agreement: IGP-M

Conditions of termination or expiration: N/A

Remaining balance: R$491

(K) Strategic agreement – Related to services between Light Energia and Lightger.

Balance sheet groups: Trade receivables x Trade payables

Relationship: Lightger (under common control)

Original amount: N/A

Duration: December 2012 to June 2014

Conditions of agreement: market price

Conditions of termination or expiration: N/A

Remaining balance: R$0

126

(L) Strategic agreement – Related to sale of energy by Light Energia to Lightcom.

Balance sheet groups: Trade receivables x Trade payables

Relationship: Lightcom (under common control)

Original amount: R$3,142,959

Duration: December 2013 to December 2016

Conditions of agreement: market price

Conditions of termination or expiration: N/A

Remaining balance: R$182,370

(M) Pension Plan - Fundação de Seguridade Social – Braslight

Balance sheet groups: Post-employment benefit

Relationship: Braslight (sponsor of the foundation)

Original amount: R$ 535,052

Duration: June 2001 to June 2026

Conditions of agreement: IPCA+ 6% p.a.

Conditions of termination or expiration: N/A

Remaining balance: R$131

(N) Strategic agreement – related to services between Ativa Data Center and Light.

Balance sheet groups: Trade payables

Relationship: Ativas Data Center

Original amount: R$16,393

Duration: August 2011 to January 2016

Conditions of agreement: Market prices

Conditions of termination or expiration: Failure to comply with any contractual index

for 3 consecutive months

Remaining balance: R$1,146

127

The subsidiary Light Energia has a purchase contract of 400 MW of installed power

capacity from the portfolio projects of its jointly controlledRenova Energia S.A., and

200 MW to be made available from 2015 to 2035 and 200 MW from 2016 to 2036.

Related-party transactions have been executed in accordance with the agreements

between the parties.

ii. Management remuneration

Policy regarding remuneration of the Board of Directors, Executive Board and Fiscal

Council (consolidated).

Pro-rata share of each component to the aggregate remuneration for in the first

semester of 2014 and 2013:

Board of

DirectorsFiscal Council

Board of

Executive

Officers

Board of

DirectorsFiscal Council

Board of

Executive

Officers

Fixed remuneration (%) 100% 100% 45% 100% 100% 52%

Variable remuneration (%) - - 55% - - 42%

Other (%) - - - - - 6%

TOTAL 100% 100% 100% 100% 100% 100%

Consolidated

2014

6 months

2013

Remuneration paid by the Company to the Board of Directors, Executive Board, and

Fiscal Council for in the first semester of 2014 and 2013:

Board of

DirectorsFiscal Council

Board of

Executive

Officers

TotalBoard of

DirectorsFiscal Council

Board of

Executive

Officers

Total

NUMBER OF MEMBERS (a) 22.00 10.00 8.00 40.00 21.30 10.00 8.00 39.30

FIXED REMUNERATION IN THE PERIOD 863 337 6,568 7,768 812 330 4,823 5,965

Salary or pro-labore 719 281 2,724 3,724 677 275 2,630 3,582

Direct and indirect benefits - - 421 421 - - 417 417

Other (b) 144 56 3,423 3,623 135 55 1,776 1,966

VARIABLE REMUNERATION IN THE PERIOD - - 7,886 7,886 - - 3,844 3,844

Bonus - - 7,886 7,886 - - 3,182 3,182

Other - - - - - - 662 662

Benefits due to termination of position - - - - - - 531 531

TOTAL REMUNERATION PER BODY 863 337 14,454 15,654 812 330 9,198 10,340

2014 2013

6 months

Consolidated

128

Average remuneration due to the Board of Directors, Executive Board, and Fiscal

Council for in the first semester of 2014 and 2013:

Board of

DirectorsFiscal Council

Board of

Executive

Officers

Board of

DirectorsFiscal Council

Board of

Executive

Officers

NUMBER OF MEMBERS (a) 22.00 10.00 8.00 21.30 10.00 8.00

Highest individual compensation (b) 70 56 3,217 54 43 1,556

Lowest individual compensation (b) 35 28 1,380 27 22 580

Average individual compensation (b) 39 34 1,807 38 33 1,150

39 34 1,807 38 33 1,150

2014 2013

Consolidated

6 months

(a) number of members calculated through the period’s weighted average.

(b) including Social Security and FGTS charges.

Overall management remuneration in Light S.A., parent company, for in the first semester of

2014 is R$1,915 (R$1,160 in the first semester of 2013).

24. SHAREHOLDERS’ EQUITY

a) Capital

There are 203,934,060 non-par and book-entry common shares of Light S.A.

(203,934,060 on December 31, 2013) as of June 30, 2014, recorded as capital stock in

the total amount of R$2,225,822 (R$2,225,822 on December 31, 2013), as follows:

Number of

Shares% Interest

Number of

Shares% Interest

CONTROLLING GROUP 106,304,597 52.12 106,304,597 52.12

RME Rio Minas Energia Participações S.A. 26,576,150 13.03 26,576,150 13.03

Companhia Energética de Minas Gerais S.A. 53,152,298 26.06 53,152,298 26.06

Luce Empreendimentos e Participações S.A. 26,576,149 13.03 26,576,149 13.03

OTHER 97,629,463 47.88 97,629,463 47.88

BNDES Participações S.A. - BNDESPAR 21,005,208 10.30 21,005,208 10.30

Public 76,624,255 37.58 76,624,255 37.58

OVERALL TOTAL 203,934,060 100.00 203,934,060 100.00

SHAREHOLDERS

06.30.2014 12.31.2013

129

Light S.A. is authorized to increase its capital up to the limit of 203,965,072 common

shares through resolution of the Board of Directors, regardless of amendments to the

bylaws. However, this increase is to occur exclusively upon the exercise of the warrants

issued, strictly pursuant to the conditions of the warrants (Bylaws, Article 5, Paragraph

3).

The Annual Shareholders’ Meeting held on April 24, 2014 approved the payment of

dividends relating to fiscal year ended December 31, 2013 totaling R$364,838

(composed of R$332,819 in proposed additional dividends and R$32,019 in mandatory

minimum dividends) to be paid by December 31, 2014.

25. EARNINGS PER SHARE

As required by CPC 41 and IAS 33 (Earnings per Share), the table below reconciles the

net income for the period with the amounts used to calculated the basic and diluted

earnings per share.

2014 2013 2014 2013

NUMERATOR

Net income for the period 15,274 58,212 195,790 136,857

DENOMINATOR

Weighted average number of common shares 203,934,060 203,934,060 203,934,060 203,934,060

BASIC AND DILUTED EARNINGS PER COMMON SHARE IN R$ 0.075 0.285 0.960 0.671

2nd quarter 6 months

In the periods of 2014 and 2013 there were no differences between basic and diluted earnings per share.

130

26. NET REVENUE

2014 2013 Restated 2014 2013 Restated

Electric power supply (Note 27) 2,323,312 2,110,517 5,364,740 4,613,588

Leases, rents and other 16,181 16,555 29,432 29,561

Revenue from network usage 137,674 179,487 274,997 360,266

Revenue from construction 214,303 175,561 377,827 332,849

Revenue from services rendered 20,675 12,034 35,816 28,138

CDE subsidy 19,113 21,159 38,226 35,265

Taxed service fee 967 1,083 1,855 2,087

GROSS REVENUE 2,732,225 2,516,396 6,122,893 5,401,754

ICMS (577,190) (517,902) (1,286,031) (1,165,143)

PIS / COFINS (228,093) (215,337) (520,761) (474,347)

Other (2,348) (1,078) (3,254) (2,015)

REVENUE TAXES (807,631) (734,317) (1,810,046) (1,641,505)

Fuel Consumption Account - CCC - 13,209 - (890)

Energy Development Account - CDE (34,762) (17,727) (52,489) (35,454)

Global Reversal Reserve - RGR (2,677) (2,397) (2,017) (4,794)

Energy Research Company - EPE (1,675) (1,655) (3,803) (3,477)

National Technological Development Fund - FNDCT (3,348) (3,308) (7,603) (6,952)

Energy Efficiency Program - PEE (7,047) (6,779) (15,734) (14,439)

Research and Development -R&D (3,348) (3,308) (7,603) (6,952)

Special obligations (49,589) - (113,509) -

Other charges - Proinfa (6,357) (5,053) (12,082) (10,427)

CONSUMER CHARGES (108,803) (27,018) (214,840) (83,385)

TOTAL DEDUCTIONS (916,434) (761,335) (2,024,886) (1,724,890)

NET REVENUE 1,815,791 1,755,061 4,098,007 3,676,864

2nd quarter

Consolidateted

6 months

The Company´s revenue is influenced by temperature variation in its concession area.

During the summer, revenue increases since cooling equipment is used more

frequently.

Special obligations refer to revenues earned from exceeding demand and excess

reactive charged to consumers, totaling R$28,010, and the tariff difference regarding

special treatment of non-technical losses in the concession area, in the amount of

R$85,499, which, although they are billed, do not comprise the Company’s net revenue

since the last tariff revision of subsidiary Light SESA, which occurred in November

2013.

131

27. ELECTRIC POWER SUPPLY

2014 2013 2014 2013 2014 2013

Residential 3,805,372 3,779,079 2,128 1,972 754,882 665,849

Industrial 7,943 9,723 344 342 79,986 64,693

Commerce, services and other 316,812 313,475 1,793 1,748 565,915 494,919

Rural 11,604 11,482 17 12 852 699

Public sector 11,518 11,475 399 399 125,076 124,133

Public lighting 752 728 179 171 29,516 26,107

Public utility 1,458 1,610 289 289 58,075 55,612

Own consumption 449 452 27 21 - -

BILLED SALES 4,155,908 4,128,024 5,176 4,954 1,614,302 1,432,012

ICMS (State VAT) - - - - 564,512 509,241

Unbilled sales (net of ICMS) - - - - (67,617) (48,884)

TOTAL SUPPLY (c) 4,155,908 4,128,024 5,176 4,954 2,111,197 1,892,369

Sale of energy - - 1,113 1,134 173,669 198,279

Short-term energy - - 79 69 38,446 19,869

TOTAL SUPPLY - - 1,192 1,203 212,115 218,148

OVERALL TOTAL 4,155,908 4,128,024 6,368 6,157 2,323,312 2,110,517

Consolidated

Number of billed sales (a) (b) GWh (a) R$

2nd quarter

2014 2013 2014 2013 2014 2013

Residential 3,805,372 3,779,079 4,880 4,395 1,727,221 1,537,495

Industrial 7,943 9,723 705 701 165,497 140,664

Commerce, services and other 316,812 313,475 3,827 3,625 1,195,355 1,072,960

Rural 11,604 11,482 36 26 1,908 1,586

Public sector 11,518 11,475 855 825 265,063 261,800

Public lighting 752 728 348 341 57,341 53,283

Public utility 1,458 1,610 586 571 117,771 113,697

Own consumption 449 452 55 44 - -

BILLED SALES 4,155,908 4,128,024 11,292 10,528 3,530,156 3,181,485

ICMS (State VAT) - - - - 1,258,385 1,145,468

Unbilled sales (net of ICMS) - - - - (49,328) (133,127)

TOTAL SUPPLY (c) 4,155,908 4,128,024 11,292 10,528 4,739,213 4,193,826

Sale of energy - - 2,244 2,378 501,969 399,893

Short-term energy - - 212 69 123,558 19,869

TOTAL SUPPLY - - 2,456 2,447 625,527 419,762

OVERALL TOTAL 4,155,908 4,128,024 13,748 12,975 5,364,740 4,613,588

6 months

Number of billed sales (a) (b) GWh (a) R$

Consolidated

(a)

Not revised by independent auditors (b)

Number of invoiced bills in June 2014, with and without consumption (c)

Light SESA

132

28. OPERATING COSTS AND EXPENSES

COSTS2014 2013 Restated 2014 2013 2014 2013 Restated 2014 2013

Personnel and management - - (53,027) (46,750) - - (101,681) (97,890)

Material - - (4,679) (2,385) - - (18,221) (5,619)

Outsourced services - - (50,124) (55,920) - - (94,559) (99,266)

Electric power purchased for resale (Note 29) (1,099,567) (989,136) - - (2,458,789) (2,131,228) - -

Depreciation and amortization - - (89,594) (87,780) - - (178,572) (172,733)

Cost of construction - - (214,303) (175,561) - - (377,827) (332,849)

Other - - (4,884) (13,085) - - (10,093) (23,411)

TOTAL (1,099,567) (989,136) (416,611) (381,481) (2,458,789) (2,131,228) (780,953) (731,768)

Consolidated

Electric Power Operation Electric Power Operation

2nd quarter 6 months

OPERATING EXPENSES 2014 2013 2014 2013 2014 2013 2014 2013

Personnel and management (5,003) (4,330) (27,959) (23,860) (9,582) (9,182) (53,277) (49,255)

Material (259) (257) (115) (463) (601) (497) (727) (892)

Outsourced services (22,454) (24,190) (40,109) (42,912) (42,683) (43,913) (74,678) (76,308)

Depreciation and amortization (284) (277) (11,114) (9,595) (566) (543) (20,864) (18,819)

Allowance for doubtful accounts (36,050) (48,408) - - (61,371) (77,446) - -

Provision for contingencies/success fees/judicial deposits - - 21,863 (18,186) - - (18,418) (34,589)

Other (258) (323) (26,870) (24,354) (546) (575) (55,208) (44,884)

TOTAL (64,308) (77,785) (84,304) (119,370) (115,349) (132,156) (223,172) (224,747)

General and Administrative

Consolidated

2nd quarter 6 months

Selling General and Administrative Selling

Other revenue/(expenses) 2014 2013 2014 2013

Other operating revenue 91 - 170 -

Other operating expenses (8,710) (6,535) (20,907) (14,867)

TOTAL (8,619) (6,535) (20,737) (14,867)

6 months

Consolidated

2nd quarter

133

29. ELECTRIC POWER PURCHASED FOR RESALE

2014 2013 2014 2013 Restated 2014 2013 2014 2013 Restated

Connection charges - - (3,437) (2,061) - - (6,879) (5,500)

Spot market energy 198 3 (287,201) 16,395 2,230 791 (1,532,865) (345,824)

Network usage charges - - (58,025) (45,992) - - (115,835) (94,157)

UTE Norte Fluminense 1,583 1,583 (280,277) (269,954) 3,150 3,150 (557,613) (537,036)

Itaipu - Binacional 1,307 1,338 (163,264) (164,970) 2,597 2,638 (331,257) (309,902)

Energy transportation - Itaipu - - (4,394) (4,304) - - (8,688) (8,510)

National Electric System Operator (O.N.S.) - - (4,522) (5,518) - - (8,888) (10,077)

PROINFA 123 122 (34,695) (31,593) 241 242 (66,497) (62,866)

ESS - - (19,574) (85,096) - - (46,234) (300,387)

Other contracts and electric power auctions 3,893 3,810 (587,480) (534,916) 8,100 8,125 (1,404,502) (1,114,307)

PIS/COFINS credits on purchase - - 124,060 91,351 - - 248,445 187,898

CDE transfer (b)

Hydrological risk - - - (1,609) - - (51,128) 129,835

Involuntary exposure - - 138,116 - - - 1,221,460 160,422

Availability (Thermal) - - 86,174 - - - 219,584 -

CONER (Reserve Power) - - - - - - (12,844) -

ESS - - - 57,366 - - - 193,649

Reserve Power - - (5,048) (8,235) - - (5,048) (14,466)

TOTAL 7,104 6,856 (1,099,567) (989,136) 16,318 14,946 (2,458,789) (2,131,228)

Consolidated

GWh (a) R$

2nd quarter 6 months

GWh (a) R$

(a)

Not revised by independent auditors

(b) See Note 10

30. FINANCIAL RESULT

2014 2013 2014 2013

REVENUE

Interest on electricity bills and debts paid by installments 19,961 23,978 41,363 45,198

Income from investments 28,216 12,184 44,677 15,473

Swap operations - 76,926 - 54,472

Restatement of judicial deposits 3,786 3,052 5,432 5,039

Adjustment to New Replacement Value (VNR) (1,837) 6,667 44,806 13,094

Other financial income (a) 16,669 8,130 27,553 13,699

TOTAL FINANCIAL REVENUE 66,795 130,937 163,831 146,975

EXPENSES

Restatement of provision for contingencies (9,265) (6,289) (15,107) (25,268)

Expenses with tax liabilities (4,442) (8,243) (8,201) (12,655)

Debt charges (133,428) (120,371) (255,115) (242,636)

Foreign exchange variation 24,678 (71,685) 48,967 (62,892)

Swap operations (47,236) - (94,530) -

Adjustment to present value of accounts receivable 2,114 645 3,401 938

Fines due to electric power discontinuance (6,956) (12,540) (26,250) (37,577)

Other financial expenses (a) (4,102) (7,940) (7,623) (1,224)

TOTAL FINANCIAL EXPENSES (178,637) (226,423) (354,458) (381,314)

FINANCIAL RESULT (111,842) (95,486) (190,627) (234,339)

2nd quarter 6 months

Consolidated

(a) It refers to sundry revenues and expenses.

134

31. RECONCILIATION OF TAXES IN INCOME STATEMENT

Reconciliation of effective and nominal rates in the provision for income tax and social

contribution:

2014 2013 2014 2013 2014 2013 2014 2013

Earnings before income tax and social contribution 15,274 58,212 26,503 84,802 195,790 136,857 301,625 206,652

Nominal income tax and social contribution rate 34% 34% 34% 34% 34% 34% 34% 34%

INCOME TAX AND SOCIAL CONTRIBUTION AT THE RATES ESTABLISHED BY THE CURRENT LEGISLATION (5,193) (19,792) (9,011) (28,833) (66,568) (46,531) (102,553) (70,262)

Equity in the earnings (losses) of subsidiaries 6,273 20,590 (1,373) (158) 68,474 47,521 (2,297) (376)

Tax assets - lack of future profitability of Light S.A. (Holding) (1,208) (814) (1,208) (814) (2,034) (977) (2,034) (977)

Tax incentives - - 1,097 974 - - 1,830 994

Other effects from income tax and social contribution on permanent additions and exclusions 128 16 (734) 2,241 128 (13) (781) 826

INCOME TAX AND SOCIAL CONTRIBUTION ON RESULT - - (11,229) (26,590) - - (105,835) (69,795)

Current income tax and social contribution - - (21,758) (33,286) - - (96,908) (72,828)

Deferred income tax and social contribution - - 10,529 6,696 - - (8,927) 3,033

Effective income tax and social contribution rate 0.0% 0.0% 42.4% 31.4% 0.0% 0.0% 35.1% 33.8%

Parent Company Consolidated

2nd quarter 6 months

Parent Company Consolidated

32. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The statement below reconciles the carrying and fair value of assets and liabilities

related to our financial instruments:

ASSETS Book value Fair value Book value Fair value

Cash and cash equivalents (Note 4) 379 379 26,802 26,802

Receivables from services rendered 141 141 143 143

Dividends and interest on equity receivable 373,100 373,100 36,153 36,153

Other receivables 4,561 4,561 6,146 6,146

TOTAL 378,181 378,181 69,244 69,244

LIABILITIES

Suppliers 127 127 295 295

Dividends and interest on equity payable (Note 24) 364,838 364,838 32,019 32,019

Other payables 4,018 4,018 3,960 3,960

TOTAL 368,983 368,983 36,274 36,274

Parent Company

06.30.2014 12.31.2013

135

ASSETS Book value Fair value Book value Fair value

Cash and cash equivalents (Note 4) 1,579,051 1,579,051 546,429 546,429

Marketable securities (Note 5) 14,816 14,816 1,244,000 1,244,000

Consumers, concessionaires, permissionaires and clients (Note 6) 1,638,864 1,638,864 1,432,827 1,432,827

Services 42,620 42,620 29,811 29,811

Dividends and interest on equity receivable 225 225 234 234

Swaps 110,301 110,301 141,214 141,214

Concessions's financial assets (Note 9) 2,056,118 2,056,118 1,926,226 1,926,226

Other receivables (Note 10) 250,935 250,935 217,082 217,082

TOTAL 5,692,930 5,692,930 5,537,823 5,537,823

LIABILITIES

Suppliers (Note 14) 1,080,876 1,080,876 907,262 907,262

Loans and financing (Note 16) 2,638,355 2,637,112 2,414,967 2,416,091

Debentures (Note 17) 4,185,105 4,107,792 3,400,344 3,373,235

Dividends and interest on equity payable (Note 24) 364,838 364,838 32,019 32,019

Swaps 35,747 35,747 - -

Other payables (Note 22) 277,257 277,257 259,957 259,957

TOTAL 8,582,178 8,503,622 7,014,549 6,988,564

Consolidated

06.30.2014 12.31.2013

In compliance with CVM Rule No. 475/2008 and CVM Resolution No. 604/2009, which

revoked Resolution No. 566/2008, the description of accounting balances and fair

values of financial instruments stated in the balance sheet as of June 30, 2014 are

identified as follows:

• Cash and cash equivalents

Financial investments in bank deposit certificates are classified as “loans and

receivables”.

• Marketable securities

Financial investments in bank deposit certificates are classified as “held for

trading”, measured at their fair value through profit and loss.

• Consumers, concessionaries and permissionaires (clients)

These are classified as “loans and receivables”, measured at the amortized cost,

being recorded at their original values and subject to a provision for losses and

136

adjustment to present value, where applicable.

• Concessions’ financial assets

These are classified as “available for sale”, measured at their fair value at initial

recognition. After initial recognition, interest is calculated through the effective

interest rate method and recognized in the income statement under financial

income, while the changes in the fair value are recognized in other comprehensive

income.

• Suppliers

Accounts payable to suppliers of materials and services required in the operations

of the Company, the amounts of which are known or easily determinable, added,

where applicable, of relevant charges, escalation and/or exchange costs incurred

as of the balance sheet date.

These balances are classified as other financial liabilities and were recognized at

their amortized cost, which is not significantly different from their fair value.

• Loans, borrowings and debentures

These are measured by the “amortized cost method”. Fair value was calculated at

interest rates applicable to instruments with similar nature, maturities and risks, or

based on market quotations of these securities. The fair value for BNDES financing

is identical to the accounting balance, since there are no similar instruments, with

comparable maturities and interest rates. These financial instruments are classified

as “other financial liabilities”.

• Other assets and liabilities

Other receivables and other payables classified as "loans and receivables" and

“other liabilities” are measured at amortized cost and stated at their original

values, accrued of, where applicable, corresponding charges, monetary and/or

currency variations incurred up to the balance sheet date or subject to a provision

137

for losses, where applicable.

• Swaps

These are measured at fair value. A determination of fair value used available

information on the market and usual pricing methodology: the face value

(notional) evaluation for long position (in U.S. dollars) until maturity date and

discounted at present value of clean coupon rates, published in bulletins of

Securities, Commodities and Futures Exchange – BM&FBOVESPA.

It is worth mentioning that estimated fair value of financial assets and liabilities was

determined by means of information available on the market and appropriate

valuation methodologies. Nevertheless, meaningful judgment was required when

interpreting market data to produce the most appropriate fair value estimate.

a) Financial Instruments by category:

ASSETS

Loans and

receivables

Fair value

through profit

or loss

Loans and

receivables

Fair value

through profit

or loss

Cash and cash equivalents (Note 4) 379 - 26,802 -

Receivables from services rendered 141 - 143 -

Dividends receivable 373,100 - 36,153 -

Other receivables 4,561 - 6,146 -

TOTAL 378,181 - 69,244 -

LIABILITIES

Other liabilities

Fair value

through profit

or loss

Other liabilities

Fair value

through profit

or loss

Suppliers 127 - 295 -

Dividends and interest on equity payable (Note 24) 364,838 - 32,019 -

Other payables 4,018 - 3,960 -

TOTAL 368,983 - 36,274 -

Parent Company

12.31.2013

Parent Company

06.30.2014

06.30.2014

12.31.2013

138

ASSETS

Loans and

receivables

Fair value

through profit

or loss

Available for

sale

Loans and

receivables

Fair value

through profit

or loss

Available for

sale

Cash and cash equivalents (Note 4) 1,579,051 - - 546,429 - -

Marketable securities (Note 5) - 14,816 - - 1,244,000 -

Consumers, concessionaires, permissionaires and Clients (Note 6) 1,638,864 - - 1,432,827 - -

Services 42,620 - - 29,811 - -

Dividends and interest on equity receivable 225 - - 234 - -

Swaps - 110,301 - - 141,214 -

Concessions's financial assets (Note 9) - - 2,056,118 - - 1,926,226

Other receivables (Note 10) 250,935 - - 217,082 - -

TOTAL 3,511,695 125,117 2,056,118 2,226,383 1,385,214 1,926,226

LIABILITIES

Other liabilities

Fair value

through profit

or loss

Other liabilities

Fair value

through profit

or loss

Suppliers (Note 14) 1,080,876 - 907,262 -

Loans and financing (Note 16) 2,638,355 - 2,414,967 -

Debentures (Note 17) 4,185,105 - 3,400,344 -

Dividends and interest on equity payable (Note 24) 364,838 - 32,019 -

Swaps - 35,747 - -

Other payables (Note 22) 277,257 - 259,957 -

TOTAL 8,546,431 35,747 7,014,549 -

12.31.2013

Consolidated

06.30.2014 12.31.2013

Consolidated

06.30.2014

b) Policy concerning derivative instruments

The Company has a policy for the use of derivative instruments, which has been

approved by its Board of Directors. According to this policy, the debt service (principal

plus interest and charges) denominated in foreign currency maturing within 24 months

is to be hedged, except no speculative transaction is allowed, whether using derivatives

or any other risky assets.

In line with the policy standards, the Company does not have any options, swaps,

callable swaps, flexible options, derivatives embedded in other products, derivative-

structured transactions and so-called “exotic derivatives”. Furthermore, the statement

above denotes that the Company use cashless exchange rate swaps (US$ vs. CDI), of

which the Notional Contract Value is equal to the amount of the debt service

denominated in foreign currency maturing in 24 months.

c) Risk management and goals achieved

139

The management of derivative instruments takes place through operating strategies

with a view to liquidity, profitability and safety. Our control policy consists of ongoing

enforcement of policy standards concerning the use of derivative instruments, as well

as continued monitoring of agreed upon rates versus market rates.

d) Market Risk

During the normal course of its businesses, the Company and its subsidiaries are

exposed to the market risks related to currency variations and interest rates, as

evidenced in the chart below:

Debt breakdown (excluding financial charges):

R$ % R$ %

USD 886,313 13.3 725,941 12.6

EUR 105,096 1.6 113,701 2.0

TOTAL - FOREIGN CURRENCY 991,409 14.9 839,642 14.6

CDI 4,011,596 59.9 3,269,168 57.0

IPCA 610,287 9.1 610,137 10.6

TJLP 840,317 12.6 903,027 15.7

Other 232,007 3.5 119,528 2.1

TOTAL - LOCAL CURRENCY 5,694,207 85.1 4,901,860 85.4

TOTAL 6,685,616 100.0 5,741,502 100.0

Consolidated

06.30.2014 12.31.2013

On June 30, 2014, according to the chart above, the foreign currency-denominated

debt is R$991,409, or 14.9% of debt principal (R$839,642, corresponding to 14.6% on

December 31, 2013).

Financial derivative instruments were contracted for the amount of foreign currency-

denominated debt service to expire within 24 months, in the swap modality, whose

notional value on June 30, 2014 stood at US$394,198 (US$296,913 on December 31,

2013) and €34,969 (€34,969 on December 31, 2013), in accordance with the policy for

140

use of derivative instruments approved by the Board of Directors. Thus, including the

swaps, the foreign exchange exposure represents 0.26% of total debt (1.40% on

December 31, 2013).

Below, we provide a few considerations and analyses on risk factors impacting on

business of Light Group’s companies:

• Currency risk

Considering that a portion of loans and financing is denominated in foreign currency,

the company uses derivative financial instruments (swap operations) to hedge against

service associated with these debts (principal plus interest and commissions) to expire

within 24 months in addition to the swap of previously mentioned rates. Funds raised

as per BACEN Resolution 4131 from Merrill Lynch, BNP, Citibank and Bank Tokyo-

Mitsubishi were already contracted with swap for the entire duration of the debt, duly

previously approved by the Board of Directors.

Derivative operations, comprising currency swaps and interest, the latter reported

below, resulted in a loss of R$94,530 in the first semester of 2014 (a gain of R$54,472

in the first semester of 2013). The net amount of swap operations as of June 30, 2014,

considering the fair value, is positive at R$74,554 (positive at R$141,214 on December

31, 2013), as shown below:

141

Institution Currency Light's Receivable Light's PayableStarting

Date

Maturity

Date

Notional

Value

Contracted

(US$/EURO)

Fair Value

Jun 2014

(R$) Assets

Fair Value

Jun 2014

(R$)

Liabilities

Fair Value

Jun 2014

(R$) Balance

Bank Tokyo - Mitsubishi US$ US$+2.33% 100% CDI + 0.90% 03.11.2013 03.11.2016 60,000 16,590 (547) 16,043

HSBC US$ US$+1.67% 100% CDI 10.09.2012 10.10.2014 1,338 196 (268) (72)

HSBC US$ US$ 83.29% CDI 09.20.2013 04.10.2015 1,431 - (187) (187)

HSBC US$ US$ 82.65% CDI 09.20.2013 10.09.2015 1,432 - (179) (179)

Citibank US$ US$+Libor+1.66% 100% CDI + 1.00% 08.23.2012 02.23.2017 33,333 6,768 (532) 6,236

Citibank US$ US$+Libor+1.66% 100% CDI + 1.00% 08.23.2012 08.23.2017 33,333 6,863 (534) 6,329

Citibank US$ US$+Libor+1.66% 100% CDI + 1.00% 08.23.2012 02.23.2018 33,333 6,976 (536) 6,440

Citibank R$ US$+Libor+1.51% 100% CDI +1.15% 02.25.2014 02.26.2018 100,000 - (18,130) (18,130)

Citibank US$ US$+Libor+1.5988% 100% CDI + 1.10% 10.02.2012 04.03.2017 26,666 5,012 (1,137) 3,875

Citibank US$ US$+Libor+1.5988% 100% CDI + 1.10% 10.02.2012 10.02.2017 26,666 4,965 (1,141) 3,824

Citibank US$ US$+Libor+1.5988% 100% CDI + 1.10% 10.02.2012 04.03.2018 26,666 5,070 (1,145) 3,925

Bank of America US$ Libor+2.5294% 100%CDI + 0.65% 11.10.2011 11.10.2016 50,000 23,599 (617) 22,982

BNP EURO Euro+4.6823% 100%CDI+1.30% 10.21.2011 10.21.2014 34,969 22,740 (1,786) 20,954

TOTAL 429,167 98,779 (26,739) 72,040

Institution Currency Light's Receivable Light's PayableStarting

Date

Maturity

Date

Notional

Value

Contracted

(US$/EURO)

Fair Value

Dec 2013

(R$) Assets

Fair Value

Dec 2013

(R$)

Liabilities

Fair Value

Dec 2013

(R$) Balance

Bank Tokyo - Mitsubishi US$ US$+2.33% 100% CDI + 0.90% 03.11.2013 03.11.2016 60,000 22,917 - 22,917

Itaú US$ US$+2.42% 100% CDI 04.11.2012 04.11.2014 2,715 978 - 978

HSBC US$ US$+1.67% 100% CDI 10.09.2012 10.10.2014 1,338 214 - 214

HSBC US$ US$ 83.29% CDI 09.20.2013 04.10.2015 1,431 120 - 120

HSBC US$ US$ 82.65% CDI 09.20.2013 10.09.2015 1,432 105 - 105

Citibank US$ US$+Libor+1.66% 100% CDI + 1.00% 08.23.2012 02.23.2017 33,333 10,339 - 10,339

Citibank US$ US$+Libor+1.66% 100% CDI + 1.00% 08.23.2012 08.23.2017 33,333 10,504 - 10,504

Citibank US$ US$+Libor+1.66% 100% CDI + 1.00% 08.23.2012 02.23.2018 33,333 10,708 - 10,708

Citibank US$ US$+Libor+1.5988% 100% CDI + 1.10% 10.02.2012 04.03.2017 26,666 7,145 - 7,145

Citibank US$ US$+Libor+1.5988% 100% CDI + 1.10% 10.02.2012 10.02.2017 26,666 7,260 - 7,260

Citibank US$ US$+Libor+1.5988% 100% CDI + 1.10% 10.02.2012 04.03.2018 26,666 7,408 - 7,408

Bank of America US$ Libor+2.5294% 100%CDI + 0.65% 11.10.2011 11.10.2016 50,000 31,209 - 31,209

BNP EURO Euro+4.6823% 100%CDI+1.30% 10.21.2011 10.21.2014 34,969 29,958 - 29,958

TOTAL 331,882 138,865 - 138,865

The amount recorded was measured by its fair value on June 30, 2014. All operations

with derivative financial instruments are registered in clearing houses for the custody

and financial settlement of securities and there is no margin deposited in guarantee.

Operations have no initial cost.

Below, the sensitivity analysis for foreign exchange rates fluctuations, showing

eventual impacts on financial result. These sensitivity analyzes have been prepared

assuming that the value of the balances were outstanding throughout the period.

The methodology used in the “Probable Scenario” considered the best estimate for the

foreign exchange rate on June 30, 2015. It is worth highlighting that, as this refers to a

142

sensitivity analysis of the impact on the financial result of the next twelve months, debt

balances on June 30, 2014 were considered. It is worth mentioning that the behavior of

debt and derivatives balances will observe their respective contracts, and the balance

of temporary cash investments will fluctuate according to the need or available funds

of the Company.

Exchange Rate Sensitivity Analysis, with the presentation of effects on the income

statement before taxes, based on rates and projections of the following sources:

BM&FBOVESPA, BNDES, FOCUS and Bloomberg.

OPERATION Risk Debt (USD

and EUR)

Scenario (I):

Probable

Scenario (II) +

25%

Scenario (III) +

50%

FINANCIAL LIABILITIES (111,847) 165,007 441,862

National Treasury USD 66,734 (16,684) 24,191 65,066

Surety USD (51,222) 12,806 (18,568) (49,942)

Merril Lynch USD 47,702 (11,926) 17,292 46,510

BNP (EURO) EURO 48,135 (10,748) 18,414 47,575

Bank Tokyo - Mitsubishi USD 60,136 (15,034) 21,799 58,633

Citibank USD 281,046 (70,261) 101,879 274,020

DERIVATIVES Nacional 124,653 (183,575) (491,804)

Swaps (active tip) USD (455,618) 113,905 (165,161) (444,229)

Swaps (active tip) EURO (48,135) 10,748 (18,414) (47,575)

TOTAL 12,806 (18,568) (49,942)

DERIVATIVES -25% -50%

R$/US$ exchange rate (end of the period) 2.4500 1.8375 1.2250

R$/EURO exchange rate (end of the period) 3.3155 2.4866 1.6577

R$

With the chart above, it is possible to identify that the partial hedge against foreign

currency-denominated debt (only limited to debt service to expire within 24 months),

as when R$/US$ quote increases, liabilities financial expense also increases but gain

from derivatives also partially offset this negative impact and vice-versa.

• Interest rate risk

This risk derives from impact of interest rates fluctuation not only over financial

expense associated with loans, financing and debentures of the Company, but also over

financial revenues deriving from temporary cash investments. The policy for utilization

143

of derivatives approved by the Board of Directors does not comprise the contracting of

instruments against such risk. Nevertheless, the Company continuously monitors

interest rates so that to evaluate eventual need of contracting derivatives to hedge

against interest rates volatility risk. In these cases, prior approval of the Board of

Directors is requested.

On June 30, 2014 the interest rate swap operation associated with the maturity of

Bradesco CCB with notional value of R$150,000 (R$150,000 on December 31, 2013),

duly authorized by the Management, stated a total of R$2,514 (R$2,349 on December

31, 2013), considering the fair value, according to the following table:

Institution Light's Receivable Light's PayableStarting

Date

Maturity

Date

Notional

Value

Contracted

(US$/EURO)

Fair Value

Jun 2014

(R$) Assets

Fair Value

Jun 2014

(R$)

Liabilities

Fair Value

Jun 2014

(R$) Balance

HSBC CDI+0.85% 101.9%CDI+(TJLP-6%) 10.18.2011 10.18.2017 150,000 11,522 (9,008) 2,514

TOTAL 150,000 11,522 (9,008) 2,514

Institution Light's Receivable Light's PayableStarting

Date

Maturity

Date

Notional

Value

Contracted

(US$/EURO)

Fair Value

Dec 2013

(R$) Assets

Fair Value

Dec 2013

(R$)

Liabilities

Fair Value

Dec 2013

(R$) Balance

HSBC CDI+0.85% 101.9%CDI+(TJLP-6%) 10.18.2011 10.18.2017 150,000 2,349 - 2,349

TOTAL 150,000 2,349 - 2,349

Below, the sensitivity analysis for foreign exchange rates fluctuations, showing

eventual impacts on financial result. These sensitivity analyzes have been prepared

assuming that the value of the balances were outstanding throughout the period.

The methodology used in the “Probable Scenario” considered the best estimate for the

interest rate on June 30, 2015. It is worth highlighting that, as this refers to a sensitivity

analysis of the impact on the financial result of the next twelve months, considers debt

and investment balances on June 30, 2014. It is worth mentioning that the behavior of

144

debt and derivatives balances will observe their respective contracts, and the balance

of investments will fluctuate according to the need or available funds of the Company.

Below is the interest rate sensitivity analysis, showing the effects on income statement

before taxes, based on rates and projections of the following sources: BM&FBOVESPA,

BNDES, FOCUS and Bloomberg.

145

OPERATIONRisk

Scenario (I):

Probable

Scenario (II) +

25%

Scenario (III) +

50%

FINANCIAL LIABILITIES 6,502 49,927 93,353

Financial investments CDI 6,502 49,927 93,353

FINANCIAL LIABILITIES (19,123) (163,469) (306,831)

Debentures 4th issue TJLP - - (1)

Debentures 7th issue CDI (2,813) (21,597) (40,381)

Debentures 8th issue CDI (2,011) (15,443) (28,875)

Debentures 9th issue (Series A) CDI (4,290) (32,940) (61,590)

Debentures 9th issue (Series B) IPCA 135 (10,871) (21,877)

Debentures 10th issue CDI (3,709) (28,531) (53,445)

Debentures 1st issue CDI (741) (5,691) (10,640)

Debentures 2nd issue CDI (1,873) (14,382) (26,891)

Debentures 3rd issue CDI (128) (982) (1,836)

CCB Bradesco CDI (1,368) (10,507) (19,646)

CCB Bco Santander CDI (372) (2,859) (5,346)

BNDES - FINEM TJLP - (305) (566)

BNDES - direct FINEM TJLP - (1,141) (2,177)

BNDES Direto TJLP+1% TJLP - (1,192) (2,239)

SESA BNDES Capex 11/12 - Subcred.1 TJLP - (27) (54)

SESA BNDES Capex 11/12 - Subcred.2 TJLP - (2,271) (4,392)

SESA BNDES Capex 11/12 - Subcred.3 TJLP - (2,805) (5,370)

SESA BNDES Capex 11/12 - Subcred.4 TJLP - (2,876) (5,451)

SESA BNDES Capex 11/12 - Subcred.17 TJLP - - (1)

SESA BNDES Capex 11/12 - Subcred.18 TJLP - - (1)

BNDES Olimpíadas - Sub A TJLP - (131) (249)

BNDES Olimpíadas - Sub B TJLP - (136) (256)

BNDES Olimpíadas - Sub C SELIC (65) (288) (512)

BNDES - direct TJLP TJLP - (48) (92)

BNDES - direct FINEM TJLP - (50) (94)

BNDES direct TJLP+1% TJLP - (357) (690)

BNDES - Capex 11/12 TJLP - (10) (19)

PPROESCO TJLP - (548) (1,053)

Banco do Brasil CDI (722) (5,549) (10,388)

Citibank - Energia Libor 3M (250) (416) (583)

TN - Discount Bond Libor 6M (144) (229) (315)

Merril Lynch Libor 3M (149) (248) (348)

Citibank 1 Libor 3M (312) (520) (727)

Citibank 2 Libor 3M (311) (519) (726)

DERIVATIVES (38,710) (298,460) (558,914)

Currency swaps (liability position) CDI (38,717) (297,288) (555,859)

Interest rate swaps (active tip) CDI 722 5,549 10,388

Interest rate swaps (liability position) TJLP/CDI (715) (6,721) (13,443)

TOTAL (51,331) (412,002) (772,392)

Reference for FINANCIAL ASSETS +25% +50%

CDI (% end of the period) 11.22% 14.03% 16.83%

Reference for FINANCIAL LIABILITIES +25% +50%

CDI (% end of the period) 11.22% 14.03% 16.83%

TJLP (% end of the period) 5.00% 6.25% 7.50%

IPCA (% end of the period) 6.50% 8.13% 9.75%

Libor 3M (% end of the period) 0.37% 0.46% 0.56%

Libor 6M (% end of the period) 0.57% 0.71% 0.85%

R$

146

• Credit risk

It refers to the Company eventually suffering losses deriving from default of

counterparties or financial institutions depositary of funds or temporary cash

investments. To mitigate these risks, the Company uses all collection tools allowed by

the regulatory body, such as disconnection for delinquency, debit losses and

permanent monitoring and negotiation of outstanding positions. Credit risk of

receivables is diluted due to the Company´s client base.

Item "a" of this note contains a summary of the financial instruments broken down by

category, including the Company's maximum credit risk.

Concerning financial institutions, the Company only carries out low-risk operations,

classified by rating agencies. The Company has a policy of not concentrating its

portfolio in certain financial institution. Therefore, the policy’s principle is to control

the portfolio concentration through limits imposed to the Groups, as defined below,

and monitoring financial institutions through their shareholders’ equity and ratings.

Through its policy, the Company will be able to invest in fixed income products and

Interbank Deposit Rate (CDI)-indexed post-fixed income and post-fixed government

bonds.

The definition of the groups for allocation of resources is described below, as well as the percentage of current share in the Company’s portfolio:

• Group 1 – federal banks; shareholders’ equity: not applicable; minimum rating: Not applicable; percentage in the portfolio: 31.2%.

• Group 2 – Financial Institutions with Shareholders’ Equity higher than or equal to R$7 billion; Minimum Rating: AA (S&P and Fitch) or Aaa (Moody’s). Percentage in the portfolio: 58.4%.

• Group 3 – Financial institutions with Shareholders’ Equity between R$1 billion and R$7 billion; Minimum Rating: AA (S&P and Fitch) or Aaa (Moody's).

147

Percentage in the Portfolio: 8.9%.

• Group 4 – Financial Institutions with Shareholders’ Equity between R$500 million and R$1 billion; Minimum Rating: A (S&P and Fitch) or A2 (Moody’s). Percentage in the portfolio: 1.5%.

• Liquidity risk

Liquidity risk relates to the Company's ability to settle its liabilities. In order to

determine the ability to satisfactorily meet its financial liabilities, the streams of

maturities for funds raised and other liabilities are reported with the Company's

statements. Further information on the funds raised can be found in detail in Notes 16

and 17.

The Company has raised funds through its operations, from financial market

transactions and from affiliate companies, primarily allocated to support its investment

plan and in managing its cash for working capital and liability management purposes.

The Company manages the liquidity risk by continuously monitoring expected and real

cash flows and combining the maturity profiles of its financial liabilities.

Energy sold by the Company is mainly produced by hydropower plants. A prolonged

period of low rainfall can result in a decrease in the water volume of power plants

reservoirs and may result in losses because of increased costs in purchasing energy or

decreased revenues in the implementation of comprehensive programs to conserve

electricity. The extension of electricity generation through thermal power plants may

lead to increased costs for the energy distribution companies, which results in an

increased need for short-term cash, which are recoverable within the existing

regulatory framework, and could cause future rate increases.

The realization flow concerning future liabilities as per the relevant terms and

conditions, which include future interest up to the contractual maturity date, is

summarized in the statement below:

148

Interest rate instruments: 1 to 3 months3 months to

1 year1 to 5 years

More than

5 yearsTotal

Floating

Loans, financing and debentures (275,284) (1,459,426) (5,021,472) (2,484,826) (9,241,008)

Fixed rate

Loans, financing and debentures (93,384) (144,093) (341,492) (120,131) (699,100)

Suppliers (1,080,876) - - - (1,080,876)

Swap (18,106) (8,981) 87,928 - 60,841

Consolidated

a) Capital Management

The Company manages its capital with the purpose of safeguarding its capacity to

continuously offer return to shareholders and benefits to other stakeholders, in

addition to maintaining the ideal capital structure to reduce costs.

In order to maintain or adjust its capital structure, the Company either reviews the

dividend payment policy, returns capital to shareholders or issues new shares and

sells assets to reduce the indebtedness level, for instance.

06.30.2014 12.31.2013

Debt from financing, loans and debentures 6,823,460 5,815,311

(-) Cash and cash equivalents 1,579,051 546,429

NET DEBT (A) 5,244,409 5,268,882

Shareholders' equity (B) 3,340,110 3,477,139

FINANCIAL LEVERAGE RATIO - % (A÷ (B+A)) 61% 60%

Consolidated

149

b) Hierarchical Fair Value

There are three types of classification levels for the fair value of financial

instruments. This hierarchy prioritizes unadjusted prices quoted in an active

market for financial assets or liabilities. The classification of hierarchical levels can

be presented as follow:

• Level 1 - Data originating from an active market (unadjusted quoted price) that

can be accessed on a daily basis, including on the date of fair value

measurement.

• Level 2 - Different data originating from the active market (unadjusted quoted

price) included in Level 1, extracted from a pricing model based on data

observable in the market.

• Level 3 - Data extracted from a pricing model based on data that are not

observable in the market.

06.30.2014Identical markets

Level 1

Similar markets

Level 2

Without active

market

Level 3

ASSETS

Marketable securities (Note 5) 14,816 - 14,816 -

Concessions' financial assets (Note 9) 2,056,118 - - 2,056,118

Swaps 110,301 - 110,301 -

TOTAL 2,181,235 - 125,117 2,056,118

LIABILITIES

Swaps 35,747 - 35,747 -

TOTAL 35,747 - 35,747 -

Consolidated

Measurement of Fair Value

150

12.31.2013Identical markets

Level 1

Similar markets

Level 2

Without active

market

Level 3

ASSETS

Marketable securities (Note 5) 1,244,000 - 1,244,000 -

Concessions' financial assets (Note 9) 1,926,226 - - 1,926,226

Swaps 141,214 - 141,214 -

TOTAL 3,311,440 - 1,385,214 1,926,226

Measurement of Fair Value

Consolidated

The market value of a security corresponds to its maturity amount brought to present

value through the discount factor obtained based on the market interest curve in reais.

Regarding the concession’s financial assets, classified as available for sale, the inclusion

in level 3 was due to the fact that the relevant factors for the valuation at fair value

were not publicly observable. The changes between the years and the respective gains

and losses in the income statement for the year are described in note 9; there was no

impact on shareholders’ equity this year.

33. INSURANCE

On June 30, 2014, the Light group had insurances covering its main assets, including:

Operational Risk Insurance - it covers damages caused to hydroelectric and

thermoelectric powerplants, including, but not limited to its machinery, steam

turbines, gas turbines, generators, boilers, transformers, channels, tunnels, dams,

spillway, civil works, offices and warehouses. All assets are insured under the

Operational Risks modality, with an “All Risks” coverage, including the transmission

and distribution lines up to 1,000 feet from generation site.

Directors and Officers Liability Insurance (D&O) - It has the purpose of protecting

Executives from losses and damages resulting from the performance of their activities

inherent to the position as Directors, Officers and Managers of the Company.

151

General and Civil Liability Insurance - focuses on the payment of indemnity if the

Company is deemed civilly liable by a final and unappealable court decision or deal

authorized by the insurance company, in relation to remedies for property damage

and involuntary personal injury caused to third parties and also those related to

pollution, contamination, sudden and/or accidental leakage.

Financial Guarantee Insurance – Energy Trading and Judicial. Property Insurance –

Comprehensive Business (Leased Properties). International Transport Insurance –

Imports, Corporate Travel Insurance and Personal Insurance.

The assumptions of risks adopted, given their nature, are not included in the scope of

an audit firm, accordingly, they were not revised by independent auditors.

Below, a summarized breakdown of main insurance policies considered by Management:

From To

Directors & Officers (D&O) 08.10.2014 08.10.2015 $40,350 $150

Civil and general liabilities 10.31.2013 10.31.2014 $20,000 $845

Operating risks (1) 10.31.2013 10.31.2014 R$ 5,426,824 $2,504

(1) Total Value in Risk of R$5,426,824

(1) Maximum limit of liability (LMR) is R$300,000 - Indemnity

TermAmount Insured

Gross Premium (including cost

of insurance policy + IOF)RISKS

34. SEGMENT REPORTING

Segment reporting was prepared according to CPC 22 (Operating Segments),

equivalent to IFRS 8, and is reported in relation to the business of the Company,

identified based on their management structure and internal management

information.

The Company's Management considers the following segments: power distribution,

power generation, power trading and others (including the holding company). The

152

eliminations comprise intersegment balances, transactions and interests. The

Company is segmented according to its operation, which has different risks and

compensation. No Company’s client accounts for more than 10% of revenue or

receivables.

Segment information for the semester ended June 30, 2014 and 2013 and the year

ended December 31, 2013 is presented below:

Distribution Generation Trading Other EliminationsConsolidated

06.30.2014

Assets:

Current assets 2,916,100 412,875 548,121 381,216 (741,477) 3,516,835

Other non-current assets 3,234,113 16,757 78,725 312 (5,741) 3,324,166

Investments 19,504 457,761 366 3,330,649 (3,155,805) 652,475

Property, plant and equipment 234,488 1,329,262 87,021 802 - 1,651,573

Intangible assets 4,008,192 1,584 816 183 - 4,010,775

TOTAL ASSETS 10,412,397 2,218,239 715,049 3,713,162 (3,903,023) 13,155,824

Liabilities and shareholders' equity:

Current liabilities 2,402,949 507,227 533,648 369,966 (741,477) 3,072,313

Non-current liabilities 5,732,747 977,107 38,387 901 (5,741) 6,743,401

Shareholders' equity 2,276,701 733,905 143,014 3,342,295 (3,155,805) 3,340,110

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,412,397 2,218,239 715,049 3,713,162 (3,903,023) 13,155,824

Distribution Generation Trading Other EliminationsConsolidated

12.31.2013

Assets:

Current assets 3,177,397 293,818 206,726 79,228 (261,413) 3,495,756

Other non-current assets 3,199,383 23,473 59,787 305 (59,530) 3,223,418

Investments 19,584 463,838 406 3,449,075 (3,290,700) 642,203

Property, plant and equipment 240,205 1,347,169 90,535 813 - 1,678,722

Intangible assets 3,959,677 1,385 825 221 - 3,962,108

TOTAL ASSETS 10,596,246 2,129,683 358,279 3,529,642 (3,611,643) 13,002,207

Liabilities and shareholders' equity:

Current liabilities 3,058,995 255,490 216,244 49,146 (261,413) 3,318,462

Non-current liabilities 5,100,790 1,143,012 21,434 900 (59,530) 6,206,606

Shareholders' equity 2,436,461 731,181 120,601 3,479,596 (3,290,700) 3,477,139

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,596,246 2,129,683 358,279 3,529,642 (3,611,643) 13,002,207

153

Income segment reporting:

6 months Distribution Generation Trading Other EliminationsConsolidated

2014

NET REVENUE 3,563,013 344,643 451,625 1,412 (262,686) 4,098,007

OPERATING COSTS AND EXPENSES (3,347,500) (94,980) (411,496) (7,713) 262,689 (3,599,000)

Equity in the earnings (losses) of subsidiaries - (6,091) (40) 200,770 (201,394) (6,755)

FINANCIAL RESULT (154,107) (42,521) 5,555 446 - (190,627)

Financial income 155,522 4,061 6,997 557 (3,306) 163,831

Financial expense (309,629) (46,582) (1,442) (111) 3,306 (354,458)

EARNINGS BEFORE TAXES 61,406 201,051 45,644 194,915 (201,391) 301,625

Social contribution (6,524) (18,720) (4,358) (36) - (29,638)

Income tax (13,638) (50,511) (12,022) (26) - (76,197)

NET RESULT 41,244 131,820 29,264 194,853 (201,391) 195,790

6 months Distribution Generation Trading Other EliminationsConsolidated

2013 Restated

OPERATING REVENUE 4,977,184 313,073 361,679 5,181 (255,363) 5,401,754

REVENUE DEDUCTIONS (1,660,459) (35,788) (51,524) (286) 23,167 (1,724,890)

NET REVENUE 3,316,725 277,285 310,155 4,895 (232,196) 3,676,864

OPERATING COSTS AND EXPENSES (3,078,559) (81,624) (296,060) (8,622) 230,099 (3,234,766)

Equity in the earnings (losses) of subsidiaries - (1,856) 100 138,873 (138,224) (1,107)

FINANCIAL RESULT (194,671) (40,522) (149) 1,003 - (234,339)

Financial income 136,663 13,311 1,103 1,015 (5,117) 146,975

Financial expense (331,334) (53,833) (1,252) (12) 5,117 (381,314)

EARNINGS BEFORE TAXES 43,495 153,283 14,046 136,149 (140,321) 206,652

Social contribution (3,377) (15,469) (1,311) (60) - (20,217)

Income tax (9,195) (36,988) (3,293) (102) - (49,578)

NET RESULT 30,923 100,826 9,442 135,987 (140,321) 136,857

154

35. NON-CASH TRANSACTIONS

In the six-month periods ended June 30, 2014 and 2013, the Company carried out the

following non-cash investment and financing activities, which are not reflected in the

statements of cash flows:

06.30.2014 06.30.2013

Capitalized financial charges (property, plant and equipment and intangible assets) 16,518 8,780

Acquisition of intangible assets against suppliers 84,115 42,051

Construction revenue (DVA) 385,959 332,849

Consolidated

155

36. SUBSEQUENT EVENTS

a) Approval of a loan with BNDES

On July 18, 2014, the Company approved the taking out of a loan by subsidiary Light

SESA, totaling R$580,056 with BNDES, at an average cost estimated at 8.37% p.a., to

finance investments in 2013 and 2014, guaranteed by a suretyship from the Company

and the fiduciary assignment of 2.30% of Light SESA’s net operating revenue.

b) Transfer of PCH Lajes’ concession

On July 8, 2014, Authoritative Resolution 4734/2014 was issued, transferring the Lajes

PCH concession from subsidiary Light Energia S.A. to Lajes Energia, an entity controlled

by Light Energia.

c) Sale of interest in E-Power

On July 24, the Company sold its entire interest in E-Power’s capital, representing 20%

of total capital to CR Zongshen Fabricadora de Veículos S.A. (CR Zongshen) for

R$1,097.

d) Entry of CEMIG GT into Renova Energia S.A.’s controlling block

On July 25, 2014, Renova Energia S.A. announced a 60-day extension to the term for

exercising the preemptive rights deriving from the capital increase approved in

February 2014, aiming at ruling Cemig GT’s entry into Renova’s controlling block. As a

result, the term to exercise the preemptive right, which would have expired on July

29, 2014, will now expire on September 29, 2014, including.

156

SITTING MEMBERS ALTERNATE MEMBERS

Sérgio Alair Barroso Luiz Fernando Rolla

Humberto Eustáquio César Mota César Vaz de Melo Fernandes

Raul Belens Jungmann Pinto Fernando Henrique Schuffner Neto

Maria Estela Kubitscheck Lopes Carmen Lúcia Claussen Kanter

Djalma Bastos de Morais Wilson Borrajo Cid

José Carlos Aleluia Costa José Augusto Gomes Campos

Fabiano Macanhan Fontes Carlos Antonio Decezaro

Luiz Carlos da Silva Cantídio Junior Marcelo Pedreira de Oliveira

Guilherme Narciso de Lacerda Jalisson Lage Maciel

David Zylbersztajn Almir José dos Santos

Carlos Alberto da Cruz Magno dos Santos Filho

BOARD OF DIRECTORS

SITTING MEMBERS ALTERNATE MEMBERS

Aristóteles Luiz Menezes Vasconcellos Drummond Ari Barcelos da Silva

Francisco Luiz Moreira Penna Aliomar Silva Lima

Raphael Manhães Martins Ronald Gastão Andrade Reis

Rogério Fernando Lot Francisco Vicente Santana Silva Telles

Ernesto Costa Pierobon Alexsandro Pinheiro Cardoso

FISCAL COUNCIL

157

BOARD OF EXECUTIVE OFFICERS

Paulo Roberto Ribeiro Pinto

Chief Executive Officer

João Batista Zolini Carneiro

Chief Financial and Investor Relations Officer

Andreia Ribeiro Junqueira e Souza

Human Resources Officer

Paulo Carvalho Filho

Corporate Management Officer

Evandro Leite Vasconcelos

Energy and Business Development Officer

(temporarily)

Ricardo Cesar Costa Rocha

Distribution Officer

Fernando Antônio Fagundes Reis

Legal Officer

Luiz Otávio Ziza Mota Valadares

Communication Officer

Roberto Caixeta Barroso Simone da Silva Cerutti de Azevedo

Controllership Superintendent Accountant - Accounting Manager

CPF 013.011.556-83 CPF 094.894.347-52

CRC-MG 078086/O-8 CRC-RJ 103826/O-9

CONTROLLERSHIP SUPERINTENDENCE

Deloitte Touche Tohmatsu

Av. Presidente Wilson, 231 – 22º 25º e 26º andares

Rio de Janeiro – RJ – 20030-905

Brasil

Tel: + 55 (21) 3981-0500

Fax:+ 55 (21) 3981-0600

www.deloitte.com.br

158

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(Convenience Translation into English from the Original Previously Issued in Portuguese) REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION To the Shareholders, Board of Directors and Management of Light S.A. Rio de Janeiro - RJ

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of Light S.A. (the “Company”), identified as Parent and Consolidated, respectively, included in the Interim Financial Information Form (ITR) for the quarter ended June 30, 2014, which comprises the balance sheet as at June 30, 2014 and the related income statement and statement of comprehensive income for the three and six-month periods then ended, and the statement of changes in equity and statement of cash flows for the six-month period then ended, including the explanatory notes.

Management is responsible for the preparation of the individual interim financial information in accordance with CPC 21(R1) - Interim Financial Reporting and the consolidated interim financial information in accordance with CPC 21(R1) and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of Interim Financial Information (ITR).Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review of interim financial information (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information included in the ITR referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) applicable to the preparation of Interim Financial Information (ITR)

Deloitte Touche Tohmatsu

159

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and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM).

Conclusion on the consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying

consolidated interim financial information included in the ITR referred to above is not prepared, in all

material respects, in accordance with CPC 21(R1) and IAS 34 applicable to the preparation of Interim

Financial Information (ITR) and presented in accordance with the standards issued by the Brazilian

Securities and Exchange Commission (CVM).

Emphases of matter

Restatement of corresponding figures

As mentioned in Note 3, due to the reclassifications described in said note, the corresponding consolidated

figures, relating to the income statement for the three and six-month periods ended June 30, 2014 and the

statement of cash flows for the six-month period then ended, presented for purposes of comparison, were

adjusted and are being restated as set forth in CPC 23 and IAS 8 Accounting Policies, Changes in Accounting

Estimates and Errors and CPC 26(R1) and IAS 1 Presentation of Financial Statements. Our conclusion does not

contain any modification with respect to this matter.

Law 12783/12, Decrees 7945/13, 8203/14 and 8221/14

As mentioned in Note 10, the Company accounted for as reduction of the cost of energy purchased for resale

transfers of direct funds from the Energy Development Account (CDE), through the Electric Power Trade

Chamber (CCEE), relating to the quarter ended June 30, 2014. Our conclusion does not contain any

modification with respect to this matter.

Other matters

Statements of value added

We have also reviewed the individual and consolidated interim statements of value added (“DVA”), for the

six-month period ended June 30, 2014, prepared under the responsibility of the Company’s management,

the presentation of which is required by the standards issued by the Brazilian Securities and Exchange

Commission (CVM) applicable to the preparation of Interim Financial Information (ITR), and is considered

as supplemental information for IFRS that does not require the presentation of a DVA. These statements

were subject to the same review procedures described above and, based on our review, nothing has come

to our attention that causes us to believe that they are not prepared, in all material respects, in relation to

the individual and consolidated interim financial information taken as a whole. As mentioned in emphasis

Deloitte Touche Tohmatsu

160

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of matter paragraph "Restatement of corresponding figures", the consolidated statements of value added

for the period ended June 30, 2013 is also being restated.

The accompanying interim financial information has been translated into English for the convenience of

readers outside Brazil.

Rio de Janeiro, August 11, 2014

DELOITTE TOUCHE TOHMATSU Marcelo Salvador

Auditores Independentes Engagement Partner

Deloitte Touche Tohmatsu

161

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