Itr 2

REVIEW REPORT OF INDEPENDENT AUDITORS
(A translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM) containing quarterly information prepared in accordance with the regulations issued by the CVM) To the Board of Directors and Shareholders of
Light S.A. Rio de Janeiro - RJ
1. We have reviewed the accounting information included in Quarterly Financial Information ITR - of Light S.A. and the consolidated Quarterly Financial Information of this Company and its subsidiaries for the quarter ended June 30, 2009, comprising the balance sheet, the statements of income, of changes in shareholders equity and of cash flows, the performance report, and explanatory notes, prepared under the responsibility of the Companys management. 2. Our review was performed in accordance with the review standards established by the IBRACON - Brazilian Institute of Independent Auditors and the Federal Council of Accountancy - CFC, which comprised, mainly: (a) inquiries and discussions with the persons responsible for the Accounting, Financial and Operational areas of the Company and its subsidiaries, as to the main criteria adopted in the preparation of the Quarterly Financial Information; and (b) reviewing information and subsequent events that have or may have material effects on the financial situation and operations of the Company and its subsidiaries. 3. Based on our review, we are not aware of any material changes that should be made to the accounting information contained in the Quarterly Financial Information aforementioned for it to be in accordance with the accounting practices adopted in Brazil and the standards issued by the Brazilian Securities and Exchange Commission - CVM - applicable to the preparation of the Quarterly Information. 4. As described in Note 2, as a result of the changes to the accounting practices adopted in Brazil in 2008, the statements of income and of cash flows for the first quarter ended June 30, 2008, presented for comparison purposes, were adjusted and are being re-presented, as provided for by NPC 12 - Accounting Practices, Changes in Accounting Estimates and Error Correction, approved by CVM Resolution 506. 5. The financial statements of Fundao de Seguridade Social Braslight for the four-month period ended April 30, 2009, were examined by other independent auditors whose opinion, dated June 2, 2009, includes an emphasis paragraph regarding the balance of R$133,520 thousand related to tax credits arising from the Entitys tax court case which was successful in obtaining a final and non-appeasable decision, which, according to the Managements forecast, will allow them to utilize these credits to offset taxes payable in future years. The future realization of the credits is subject to the completion of the offset process with the Federal Tax Authority (Secretaria da Receita Federal), which the Entity suspended in September 2005. If the Entity does not complete the offset process, they may eventually record a provision for this asset. This asset, which guarantees the Entitys actuarial reserves, was deducted from calculation of the subsidiaries actuarial deficit, as required by Resolution n 371/00 of the Brazilian Securities and Exchange Commission - CVM.
Consequently, in the event that a provision is recorded for this amount, Companys liability may be proportionally adjusted. 6. As mentioned in Note 30, due to the second periodical review of tariffs of the subsidiary Light Servios de Eletricidade S.A. as set forth in the concession agreement, the National Regulatory Electricity Agency - ANEEL temporarily ratified the subsidiarys tariff repositioning on 1.96%, to be applied during the period beginning November 7, 2008. Considering the 2.30% interest on sales, the tariffs impact reaches 4.27%. Additional changes that may result from the final review, if any, will be reflected in the equity and financial position of the Company and its subsidiary in the following periods.
August 7, 2009
KPMG Auditores Independentes CRC SP-14428/O-6 F-RJ
Vnia Andrade de Souza Accountant CRC RJ-057497-O-2
(A free translation of the original in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM) STANDARDIZED FINANCIAL STATEMENTS (DFP) COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES 01987-9 11.01 NOTES TO THE FINANCIAL STATEMENTS LIGHT S.A.
June 30, 2009
Brazilian Corporation Law
03.378.521/0001-75
LIGHT S.A. BALANCE SHEETS ON JUNE 30, 2009 (In thousands of reais)
ASSETS Parent Company 30/6/2009 31/3/2009 3.632 660 91.770 47 136 96.245 3.110.703 3.327 633 499.638 91 182 503.871 2.979.189 Consolidated 30/6/2009 31/3/2009 569.637 1.306.261 716.982 20.024 2.320 77.380 91.195 67.228 2.851.027 6.347.099 736.273 1.495.599 706.820 19.877 6.302 68.291 224.772 74.165 3.332.099 6.198.796
Notes CURRENT Cash and Cash Equivalents Consumers, concessionaires and permissionaires Recoverable Taxes Inventories Receivables from swa p transactions Dividends receivable Services Prepaid expenses Other receivables 4 5 6 27
7 8
NON-CURREN T ASSETS LON G-TERM ASSETS Consumers, concessionaires and permissionaires Recoverable Taxes Receivables from swa p transactions Escrow deposits Prepaid expenses Other receivables
5 6 27 7 8
151 151 3.110.552 3.206.948
121 121 2.979.068 3.483.060
306.097 1.143.478 208.575 239.504 8.728 1.906.382 18.807 4.150.722 271.188 9.198.126
297.458 1.080.068 4.189 196.587 220.019 7.870 1.806.191 18.640 4.097.180 276.785 9.530.895
Investme nts Property, Plant and Equipment Intangible assets Deferred charges
9 10 11
35
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03.378.521/0001-75
LIGHT S.A. BALANCE SHEETS ON JUNE 30, 2009 (In thousands of reais)
LIABILITIES Parent Company 30/6/2009 31/3/2009 Consolidated 30/6/2009 31/3/2009
Notes CURRENT Suppliers Payroll Taxes Loans, financing and fi nancial charges Debentures and financial charges Dividends Payable Estimated Liabilities Regulatory charges - consumer contributions Provisi on for contingencies Pension plan and other employee benefits Other Liabilities
12 6 13 14
15 16 18 17
70 28 42 91.770 134 1.427 93.471 -
167 4 5 499.638 26 1.251 501.091 -
469.005 2.264 178.146 253.945 79.028 91.770 49.038 110.870 2.237 93.469 408.212 1.737.984 4.346.665
550.002 1.845 145.489 152.020 69.413 499.638 63.634 108.727 2.237 93.780 431.081 2.117.866 4.431.060
NON-C URRENT LIABILITIES LONG-TERM LIABILITIES Suppliers Loans, financing and fi nancial charges Debentures and financial charges Taxes Provisi on for contingencies Pension plan and other employee benefits Other Liabilities
12 13 14 6 16 18 17
980.340 903.848 330.434 1.014.479 912.649 204.915 4.346.665 -
1.024.129 920.911 327.842 1.010.231 924.219 223.728 4.431.060 -
DEFERRED INCOME SHAREHOLDERS' EQUITY Capital stock Profits reserve Capital reserve Retained earnings (accumulated losses)
20 20 31
2.225.822 555.426 42.504 289.725 3.113.477 3.206.948
2.225.819 555.426 32.436 168.288 2.981.969 3.483.060
2.225.822 555.426 42.504 289.725 3.113.477 9.198.126
2.225.819 555.426 32.436 168.288 2.981.969 9.530.895
36
(A free translation of the original in Portuguese) FEDERAL PUBLIC SERVICE BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM) STANDARDIZED FINANCIAL STATEMENTS (DFP) COMMERCIAL, INDUSTRY AND OTHER TYPES OF COMPANIES 01987-9 11.01 NOTES TO THE FINANCIAL STATEMENTS
LIGHT S.A. STATEMENT OF INCOME FOR THE PERIOD ENDED JUNE 30, 2009 AND 2008 (In thousands of reais)
Parent C ompany Notes OPERATING INCOME Electric Power Supply Electric Power Supply Other Revenues Deductions from operating revenues ICMS Consumer Charges PIS/COFINS Other 21 21 22 4/1/2009 to 6/30/2009 Parent Company 1/1/2009 to 6/30/2009 Parent Company 4/1/2008 to 6/30/2008 Parent Company 1/1/2008 to 6/30/2008 -
June 30, 2009
LIGHT S.A.
03.378.521/0001-75
23
NET OPERATING REVENUE ELECTRIC POWER COST Electric Power Purchased for Resale OPERATION AL COST Personnel Material Outsourced services Allowances Depreciation and amortization Other 25
24 24 24 24 24 24
GROSS OPERATING PROFIT OPERATING EXPENSES Selling General and administrative 24 24
(11.623) (11.623) 133.012
(22.466) (22.466) 311.336
(1.339) (1.339) 404.639
(2.373) (2.373) 509.076 -
EQUITY ACCOUNTING FINANCIAL REVENU ES (EXPENSES) Revenues Expenses 26 26
268 (218) 50
1.103 (241) 862
36 36
97 (1) 96
OTHER OPERA TING REVENUES (EXPENSES) Revenues Expenses OPERATING INCOME Non-operating income Non-operating expenses NON-OPERATING INCOME INCOME BEFORE TAXES AND INTEREST Income tax and social contribution PR OFIT/(LOSS) BEFORE INTEREST Interest INCOME/(LOSS) FOR THE YEAR Income/(Loss) per share - R$ No. of shares 6 121.439 (2) 121.437 0,59547 203.934.060 289.732 (7) 289.725 1,42068 203.934.060 403.336 403.336 1,98236 203.462.739 506.799 506.799 2,49087 203.462.739 121.439 289.732 403.336 506.799 -
121.439
289.732
403.336
506.799
37
LIGHT S.A. STATEMENT OF INCOME FOR THE PERIOD ENDED JUNE 30, 2009 AND 2008 (In thousands of reais)
Consolidated 4/1/2009 to 6/30/2009 Notes OPERATING INCOME Electric Power Supply Electric Power Supply Other Revenues Deductions from operating revenues ICMS Consumer Charges PIS/COFINS Other 21 21 22 1.832.084 94.746 138.086 2.064.916 (508.127) (186.252) (96.833) (406) (791.618) NET OPERATING REVENUE ELECTRIC POWER COST Electric Power Purchased for Resale OPERATIONAL COST Personnel Material Outsourced services Allowances Depreciation and amortization Other 25 (811.854) (811.854) 24 24 24 24 24 24 (46.045) (5.299) (27.984) (67.177) (4.274) (150.779) (1.683.847) (1.683.847) (78.634) (8.966) (53.439) (134.587) (8.973) (284.599) (715.575) (715.575) (31.423) (2.934) (28.028) (70.668) (4.008) (137.061) (1.500.757) (1.500.757) (65.522) (6.140) (55.174) (140.110) (8.164) (275.110) 1.273.298 3.933.474 178.897 278.180 4.390.551 (1.075.675) (377.482) (224.874) (1.670) (1.679.701) 2.710.850 1.793.863 81.718 161.901 2.037.482 (486.121) (129.051) (124.248) (490) (739.910) 1.297.572 3.615.337 186.344 306.431 4.108.112 (989.649) (248.082) (255.446) (1.617) (1.494.794) 2.613.318 Consolidated 1/1/2009 to 6/30/2009 Consolidated 4/1/2008 to 6/30/2008 Consolidated 1/1/2008 to 6/30/2008
June 30, 2009
LIGHT S.A.
03.378.521/0001-75
23
GROSS OPERATING PROFIT OPERATING EXPENSES Selling General and administrative 24 24
310.665
742.404
444.936
837.451
(86.630) (79.539) (166.169) -
(164.063) (160.633) (324.696) -
(65.753) (125.148) (190.901) -
(144.227) (210.290) (354.517) -
EQUITY ACCOUNTING FINANCIAL REVENUES (EXPENSES) Revenues Expenses 26 26
39.259 (50.789) (11.530)
85.528 (121.810) (36.282)
99.970 321.112 421.082
154.028 183.094 337.122
OTHER OPERATING REVENUES (EXPENSES) Revenues Expenses OPERATING INCOME Non-operating income Non-operating expenses NON-OPERATING INCOME INCOME BEFORE TAXES AND INTEREST Income tax and social contribution PROFIT/(LOSS) BEFORE INTEREST Interest INCOME/(LOSS) FOR THE YEA R Income/(Loss) per share - R$ No. of shares 6
1.909 (4.293) (2.384) 130.582 -
8.023 (5.126) 2.897 384.323 -
(291) (5.362) (5.653) 669.464 -
16.521 (4.298) 12.223 832.279 -
130.582 (2.279) 128.303 (6.866) 121.437 0,59547 203.934.060
384.323 (80.524) 303.799 (14.074) 289.725 1,42068 203.934.060
669.464 (276.535) 392.929 (4.325) 388.604 1,90995 203.462.739
832.279 (328.022) 504.257 (12.190) 492.067 2,41846 203.462.739
38
LIGHT - S.A. STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (In thousands of reais)
PROFITS RESERVE CAPITAL STOCK 2.225.819 3 2.225.822 CAPITAL RESERVES 32.436 10.068 42.504 LEGAL RESERV E 103.757 103.757 RETAINED PROFITS 451.669 451.669 RETAINED EARNIGNS (ACCUMULATED LOSSES) 168.288 121.437 289.725 TOTAL 2.981.969 3 10.068 121.437 3.113.477
June 30, 2009
LIGHT S.A.
03.378.521/0001-75
BALANCE ON MARCH 31, 2009 Capital increase Grant ed options Net income for the period BALANCE ON JUNE 30, 2009
LIGHT - S.A. STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (In thousands of reais)

PROFITS RESERVE CAPITAL STOCK 2.225.819 3 2.225.822 CAPITAL RESERVES 22.459 20.045 42.504 LEGAL RESERVE 103.757 103.757 RETAINED PROFITS 451.669 451.669 RETAINED EARNIGNS (ACCUMULATED LOSSES) 289.725 289.725 TOTAL 2.803.704 3 20.045 289.725 3.113.477
BALANCE ON DECEMBER 31, 2008 Capital increase Granted options Net income for the period BALANCE ON JUNE 30, 2009
39
LIGHT - S.A. CASH FLOW STATEMENTS (In thousands of reais)
Parent C ompany 4/1/2009 to 6/30/2009 Fr om operations Income/(loss) for the year Revenues (expenses) not affecting cash: Allowance for doubtful accounts Provision for (reversal of) losses in the recovery of long-term RTE Restatement of regulatory and contingent assets and liabilities Adjustment of receivables to present value Depreciation and amortization Equity Accounting Interests and monetary variations - net Income/loss from write-off of property, plant and equipment Deferred income tax and social contribution Charges and monetary variation on post-employment benefits PIS/COFIN S reversal - tax rate increase and expansion of the basis Provision for liabilities - contingent Granted options Other (Increase) Reduction in assets Consumers and resellers Recoverable Taxes Services Inventories Prepaid Expenses (CVA and other) Dividends received Regulatory assets (CVA and Bolhas) Escrow deposits Other Increase (Reduction) in liabilities Suppliers Electric power suppliers Salaries and social contributions Taxes and Social Contributions Offsetting accounts - CVA Regulatory fees Contingencies Post-employment benefits Other (97) 134 37 172 246 Cash generated by (used in) operations Investment activities Sale of assets Investments in property, plant and equipment Advances Shareholding Investments Consumer contributions Cash used in investment activities Financing activities Paid dividends 1.533 1.533 1.533 (36.388) (34.855) 130 130 406.640 (213) 126 32 141 86 406.099 (9) (1) 3 274 267 (1.189) (56) (4) 1 300 241 201.355 (27) 44 407.868 (30) 46 407.901 (376) 88 407.868 (30) 31 407.581 (21) (36) 62 (158) (153) 1 (52) 121 203.463 (142) 203.391 10.068 (1.507) 20.043 (1.568) (1.303) (2.277) (133.012) (311.336) (404.639) (509.076) 121.437 289.725 403.336 506.799 1/1/2009 to 6/30/2009 4/1/2008 to 6/30/2008 1/1/2008 to 6/30/2008
June 30, 2009
LIGHT S.A.
03.378.521/0001-75
(407.868)
(407.868)
(203.463)
40
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LIGHT - S.A. CASH FLOW STATEMENTS (In thousands of reais)

Consolidated 4/1/2009 to 6/30/2009 From operations Income/(loss) for the year Revenues (expenses) not affecting cash: Allowance for doubtful accounts Provision for (reversal of) losses in the recovery of long-term RTE Restatement of regulatory and contingent assets and liabilities Adjustment of receivables to present value Depreciation and amortization Equity Accounting Interests and monetary variations - net Income/loss from write-off of property, plant and equipment Deferred income tax and social contribution Charges and monetary variation on post-employment benefits PIS/COFINS reversal - tax rate increase and expansion of the basis Provision for liabilities - contingent Granted options Other (Increase) Reduction in assets Consumers and resellers Recoverable Taxes Services Inventories Prepaid Expenses (CVA and other) Dividends received Regulatory assets (CVA and Bolhas) Escrow deposits Other Increase (Reduction) in liabilities Suppliers Electric power suppliers Salaries and social contributions Taxes and Social Contributions Offsetting accounts - CVA Regulatory fees Contingencies Post-employment benefits Other (38.152) (42.842) (14.177) 29.341 (34.746) (350) (22.867) (23.177) (4.630) (151.600) Cash generated by (used in) operations Investment activities Sale of assets Investments in property, plant and equipment Advances Shareholding Investments Consumer contributions Cash used in investment activities Financing activities Paid dividends Loans and financings Amortization of loans and financings Net cash generated by (used in) financing activities Net cash variation Statement of net cash variation At the beginning of the year At the end of the year Cash variation 736.273 569.637 (166.636) 590.126 569.637 (20.489) 394.290 442.606 48.316 490.211 442.606 (47.605) (407.868) 101.266 (91.420) (398.022) (166.636) (407.869) 123.940 (161.608) (445.537) (20.489) 75.400 (73.116) 2.284 48.316 (203.463) 75.400 (135.443) (263.506) (47.605) 1.230 (130.221) 1.331 (127.660) 6.927 (242.665) 3.180 (232.558) (148.179) (1.260) (149.439) 2.000 (240.320) (1.113) (239.433) 359.046 (27.229) 10.033 (6.542) (58.904) (89.828) (23.193) (37.709) (46.531) (21.644) (301.547) 657.606 4.980 (79.878) (18.086) 60.209 (31.873) (6.196) (21.944) (21.424) 60.697 (53.515) 195.471 (23.296) (77.074) (9.801) (68.429) (75.977) (13.646) (33.611) (41.468) 84.943 (258.359) 455.334 66.543 9.992 (5.619) 76.078 45.852 2.384 (71.674) 11.296 18.393 10.068 284.750 118.345 (468) (9.089) (147) (8.751) 123.615 (11.988) 14.379 225.896 126.708 32.470 (11.419) 152.420 88.702 (2.788) (27.054) 20.488 23.539 20.045 (471) 712.365 (87.675) 116.118 (19.880) (1.421) (10.167) 196.952 (14.375) 67.236 246.788 47.386 11.511 (9.014) 80.312 40.562 6.584 193.779 47.502 (432.358) 69.355 (2.853) 441.370 (12.859) (333.320) 6.507 616 1.240 59.465 5.153 80.814 (192.384) 105.260 2.385 23.882 (6.888) 159.365 93.666 (9.694) 182.254 86.299 (432.358) 86.655 (935) 781.958 (24.118) (161.927) (6.167) (4.055) 873 79.745 3.103 44.281 (68.265) 121.437 289.725 388.604 492.067 1/1/2009 to 6/30/2009 4/1/2008 to 6/30/2008 1/1/2008 to 6/30/2008
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TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. OPERATIONS PRESENTATION OF THE QUARTERLY INFORMATION REGULATORY ASSETS AND LIABILITIES CASH AND CASH EQUIVALENTS CONSUMERS, CONCESSIONAIRES AND PERMISSIONAIRES (CLIENTS) TAXES PREPAID EXPENSES OTHER RECEIVABLES INVESTMENTS PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS SUPPLIERS LOANS, FINANCING AND FINANCIAL CHARGES DEBENTURES AND FINANCIAL CHARGES REGULATORY CHARGES CONSUMER CONTRIBUTIONS PROVISION FOR CONTINGENCIES OTHER PAYABLES PENSION PLAN AND OTHER EMPLOYEE BENEFITS RELATED-PARTY TRANSACTIONS SHAREHOLDERS EQUITY ELECTRIC POWER SUPPLY OTHER REVENUES CONSUMER CHARGES (OPERATING REVENUE DEDUCTIONS) OPERATING COSTS AND EXPENSES ELECTRICITY PURCHASED FOR RESALE FINANCIAL INCOME FINANCIAL INSTRUMENTS INSURANCE STATEMENT OF OPERATIONS BY COMPANY TARIFF REVIEW LONG-TERM INCENTIVE PLAN SUBSEQUENT EVENTS
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NOTES TO THE QUARTERLY INFORMATION AS OF JUNE 30, 2009

(Amounts in thousands of Brazilian reais)
1.
OPERATIONS
Light S.A.s corporate purpose is to hold equity interests in other companies, as partner or shareholder, and in the direct or indirect exploitation, as applicable, of electric power services, including electric power generation, transmission, sale and distribution systems, as well as other related services. Light S.A. is a parent company of the following companies: Light Servios de Eletricidade S.A. (Light SESA) - Publicly-held company engaged in the distribution of electric power; Light Energia S.A. - (Light Energia) Closely-held company whose main activity is study, plan, construct, operate and exploit electric power generation, transmission and sales, systems and related services; Light Esco Prestao de Servios Ltda. - (Light Esco) Company whose main activity is to provide services related to co-generation, projects, management and solutions, such as improving efficiency and defining energy matrixes and sale of energy on the free market. Itaocara Energia Ltda. - (Itaocara Energia) Pre-operating company, primarily engaged in the exploitation and production of electric power; Lightger Ltda. (Light Ger) and Lighthidro Ltda. (Light Hidro) Pre-operating companies both to participate in auctions for concession, authorization and permission for new plants. On December 24, 2008, Light Ger obtained the installation license that authorizes the start of implementation works of Paracambi small hydroelectric power plant (PCH); and Instituto Light para o Desenvolvimento Urbano e Social (Light Institute) It is engaged in participating in social and cultural projects, has interest in the cities economic and social development, affirming the Companys ability to be socially responsible. Grupo Lights concessions and authorizations: Concessions / authorizations Generation, Transmission and Distribution Date of concession / Maturity Date authorization July 1996 June 2026
43
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(direct) Paracambi small hydroelectric power plant (PCH) (indirect) Itaocara hydroelectric power plant (indirect) 2.
February 2001 March 2001
February 2031 March 2036
PRESENTATION OF THE QUARTERLY INFORMATION
The individual and consolidated quarterly information including the notes thereto, are presented in thousands of reais and other currencies, except when otherwise indicated and were prepared in accordance with the accounting practices adopted in Brazil, which comprises the Brazilian Corporation Law, Pronouncements and Guidance issued by the Brazilian Committee on Accounting Pronouncements (CPC), rules issued by the Brazilian Securities and Exchange Commission (CVM), and standards established by Brazilian Electricity Regulatory Agency (ANEEL), pursuant to Accounting Manual for the Electric Power Public Utility, having fully met all concepts introduced by Law nr. 11,638/07 and Provisional Measure nr. 449/08. This quarterly information was prepared according to the principles, practices and criteria consistent with those adopted in the preparation of the annual financial statements as of December 31, 2008 and the quarterly information as of March 31, 2009. Thus, this quarterly information should be read jointly with said statements/information. Given that the Company is comprised primarily of interests in other corporations, the notes to the quarterly information primarily reflect the accounting practices and breakdown of its subsidiaries accounts. The consolidated Quarterly Information was prepared pursuant to CVM Rule 247, of March 27, 1996, which provides, among other subjects, procedures to prepare and disclose of consolidated financial statements and in line with the accounting practices adopted in the previous year. The Quarterly Information as of June 30, 2008 was reclassified, when applicable, for comparison purposes, as described below:
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03.378.521/0001-75
Income Statement Period from April 01 to June 30, 2008 Published Cost of Goods and/or Services Sold Personnel Depreciation and amortization Operating Expenses/Revenues Selling expenses General and administrative expenses Other operating revenue Other operating expenses Non-operating Revenue Revenues Expenses Deferred Income Tax Interest/Statutory Contributions Interest (34,148) (72,779) Reclassification PLR (i) 2,725 Adjustments to Law 11,638/07 and MP449/08 (ii) 2,111 Adjusted (31,423) (70,668)
(66,055) (129,299) -
302 1,298 -
2,853 (291) (5,362)
(65,753) (125,148) (291) (5,362)
(291) (5,362) (192,091)
291 5,362 (1,688)
(193,779)
(4,325)
(4,325)
Income Statement Period from January 01 to June 30, 2008 Published Cost of Goods and/or Services Sold Personnel Depreciation and amortization Operating Expenses/Revenues Selling expenses General and administrative expenses Other operating revenue Other operating expenses Non-operating Revenue Revenues Expenses Deferred Income Tax Interest/Statutory Contributions Interest (73,202) (145,315) Reclassification PLR (i) 7,680 Adjustments to Law 11,638/07 and MP449/08 (ii) 5,205 Adjusted (65,522) (140,110)
(145,080) (212,840) -
853 3,657 -
(1,107) 16,521 (4,298)
(144,227) (210,290) 16,521 (4,298)
16,521 (4,298) (180,861)
(16,521) 4,298 (1,393)
(182,254)
(12,190)
(12,190)
(i) For most appropriate presentation, management and employee profit sharing were classified as profit sharing result PLR under income tax. (ii) In the preparation of the financial statements for year ended December 31, 2008, the Company and its subsidiaries adopted for the first time the changes in corporate legislation introduced by Law nr. 11,638/07 and Provisional Measure nr.449/08. The quarterly information as of June 30, 2008, presented herein, was also adjusted to reflect changes resulting from the adoption of said laws and CPCs issued in 2008, for the comparison of the results for the quarters and six-month periods ended in June, reconciliated as follows:
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3.
REGULATORY ASSETS AND LIABILITIES

Consolidated Current 6/30/2009 3/31/2009 52,507 52,507 220,946 56,837 146,061 18,048 273,453 (105,937) (94,901) (11,036) (105,937) 167,516 Non-current 6/30/2009 3/31/2009 229,665 229,665 229,665 (977) (977) (977) 228,688 216,399 216,399 216,399 (1,343) (1,343) (1,343) 215,056
Assets Consumers, concessionaries and permissionaires (Note 5) Tariff Readjustment - TUSD Prepaid expenses (Note 7) Portion "A" - (a) CVA - (b) Other regulatories - (c) TOTAL ASSETS Other payables (Note 17) Portion "A" - (a) CVA - (b) Other regulatories - (c) TOTAL LIABILITIES TOTAL
36,642 36,642 84,838 75,536 9,302 121,480 (71,558) (16,220) (49,551) (5,787) (71,558) 49,922
a)
Rationing:
The electric power distribution and generation companies revenues (free energy) for the rationing period is being recovered through the Extraordinary Tariff Recovery RTE, which agreement only allowed for the billing related to revenue lost of Light SESA through February 2008. In June 2008, Light SESA wrote off the items related to the extraordinary tariff recovery, free energy and its respective provisions, which were not recovered within the 74-month term set forth by ANEEL in the Emergency Program for Reduction of Electric Power Consumption (PERCEE), in the amount of R$291,448, with no impact on results of that period. The Company has lawsuits, both within ANEEL and in the judiciary scopes, seeking the indemnity of such losses.
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Due to the maturity of term for the RTE billing (Loss of Revenue), the Variation in Portion A items (from January 1, 2001 to October 25, 2001) started to be recovered from March 2008, as approved by ANEEL Directive Release nr. 267/04. Pursuant to ANEELs rules, the additional tariff should remain effective until the end of the month when the ratified amount would be fully amortized, duly remunerated. In case of Light, this amortization occurred by mid June 2009, and billing until the end of the month exceeded the amounts ratified by R$16,220, which will return to consumers upon the 2009 Tariff Adjustment, also pursuant to ANEELs rules. Said amount is recorded in other debts, under current liabilities.
b) Memorandum account for Portion A Items Variation (CVA) Records the variations during the period and the annual tariff adjustment based on the Central Bank overnight rate (SELIC) for: purchase of energy; the tariff for transportation of electric power from Itaipu; the Fuel Usage Quota (CCC); the Economic Development Account (CDE); System service charges (ESS); the tariff for the use of transmission facilities of the basic electric network; and compensation for the use of water resources (CFURH). The amounts recorded under current (assets and liabilities) refer to amounts already approved by ANEEL in November 2008, when the tariff review was concluded. The amounts recorded under non-current represent the formation of CVA to be approved in the next tariff adjustment (November 2009). Breakdown of CVA
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c)
Other Regulatory Assets/Liabilities
Finance costs transferred in the second tariff review of subsidiary Light SESA in accordance with Normative Resolution nr.734 of November 4, 2008, as per chart below:
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4.
CASH AND CASH EQUIVALENTS
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5.
CONSUMERS, (CLIENTS)
CONCESSIONAIRES
AND
PERMISSIONAIRIES
a) The balances of debt installments are adjusted to present value, when applicable, pursuant to Law nr. 11,638/07. The calculation of present value is made for each transaction of consumers debts renegotiation (debt payment by installments), based on the interest rate which reflects the term and risk of each transaction, being about 1% p.m. b) In 2Q09, bad debts were written off in the amount of R$102,547 (R$201,516 in 1Q09), amounting to R$304,063 in the six-month period. The allowance for doubtful accounts was set up in amounts deemed sufficient to cover eventual losses in the realization of credits and it is in accordance with ANEELs instructions summarized below: Clients with significant debts (large clients): - Individual analysis of balance receivable from consumers, by consumption class, deemed unlikely to be received. In other cases: - Residential consumers past due for more than 90 days; - Commercial consumers past due for more than 180 days; - Industrial and rural consumers, public sector, public lighting, public utilities and other past due for more than 360 days
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Overdue and falling due balances related to electric power billed and renegotiated debts are distributed as follows:
6.
TAXES
a) Refers to negative balance tax credits recoverable arising from refunds from temporary cash investments and government agencies in the amount of R$2,111 and
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prepaid Income Tax and Social Contribution credits for 2005, 2006, 2007 and 2008 amounting to R$173,380. The variation, for the quarter, of the amounts results of the monthly adjustment based on the Selic rate in the amount of R$6,058, new credits in the amount of R$6,082 and compensations in the amount of R$44,096, R$8,960 of withholding tax and R$35,136 of credits offset in 2008. b) The tax credits include amounts expected to be recoverable within 10 years, as set forth in referred CVM Instruction 371/02 and in the assumption of not being barred by law according to income tax Regulation, for this reason, a provision was recorded for the non-recovery in the amount of R$118,462. On June 30, such provision was reversed because of the transactions in the period, which generated a higher utilization of tax credits. Deferred taxes have been established based on the assumption of future realization, taking into account:
(i)
Income tax loss carryforward and negative social contribution basis these shall be carried forward indefinitely, but realization is limited to 30% of net income for each future fiscal year. differences these will be realized upon the payment or reversal of the provisions and/or the actual loss of doubtful accounts.
(ii) Temporary
Deferred tax assets are as follows:
c) Tax Debt Refinancing Program PAES (REFIS II) Up to June 30, 2009, Light SESA has paid 72 installments, out of 120 installments. The installments were calculated based on the total debt divided by the number of installments, subject to the TJLP (long-term interest rate).
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d) On February 20, 2003, Light SESA filed Writ of Mandamus 2003.51.01.005514-8 requesting an injunction that would release it from the payment of levied income and social contribution taxes on: (i) Profits earned by the companies LIR Energy Limited (LIR) and Light Overseas Investment Limited (LOI) before they are effectively available, in which case sole paragraph, Article 74 of Provisional Measure 2,158-35, of August 24, 2001 (MP 2,158-35), for the periods from 1996 to 2001, shall not apply; (ii) Profits earned by the companies LIR and LOI before they are effectively available, in which case Article 74, caput, of Provisional Measure 2,158-35/01, for calendar year 2002 and following years shall not apply; Light SESA obtained an injunction that is still effective, given that the Appeal filed by Light against the overruling of the writ of mandamus was received with a dual effect (returnable and suspensive), guaranteed by a definitive decision by the Superior Court of Justice. With reference to the merits, the Appeal awaits judgment. Based on this court decision, Light SESA suspended the payment of income and social contribution taxes levied on taxable income of 2004, 2005, 2006, 2007 and 2008 verified due to addition of the profits earned by companies located abroad to these taxes calculation basis. The provision on June 30, 2009 is R$298,618 (R$292,710 on March 31, 2009), already including the monetary restatement by Selic rate. e) The amount of the state VAT (ICMS) recovery on June 30, 2009 includes R$55,173 (R$62,500 on March 31, 2009) of credits deriving from the renegotiations of the CEDAE debt in July and December 2006. f) Refers to tax credits to offset derived from the adjustment of PIS and COFINS calculation bases in the period from February 2004 through April 2008, due to the use of some segment charges, such as calculation basis deduction from these taxes. In relation to the period from November 2005 through April 2008, the amount related to credits assessed is being transferred to consumers and the amount of R$26,993 (R$33,446 on March 31, 2009) is recorded in Other Payables (see Note 17).
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Reconciliation of effective and nominal income and social contribution taxes rates:
On May 27, 2009, the Law nr. 11,941/09 was approved related to tax debt installment payment. The Company is analyzing the impacts of this law and preliminary studies reveal a benefit, in view of the possibility of paying interest rates and tax debts fines with tax losses.
7.
PREPAID EXPENSES
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8.
OTHER RECEIVABLES
a) Out of the amount recorded, R$6,155 (R$5,710 on March 31, 2009) have already been authorized by ANEEL, however, they are pending receipt, and R$10,310 (R$11,764 on March 31, 2009) are under ratification phase.
9.
INVESTMENTS
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INFORMATION ON SUBSIDIARIES
CHANGES IN COMPANIES
INVESTMENTS
IN
SUBSIDIARIES
AND
ASSOCIATED
10. PROPERTY, PLANT AND EQUIPMENT
a) The balance of special obligations derives from the consumers financial income, appropriation of the Federal Government and federal, state and municipal funds to finance the work necessary to meet the electric power demand.
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Pursuant to ANEEL Regulatory Resolution 234, special obligations linked to concession shall be amortized at same property, plant and equipment depreciation rates, using an average rate from the second cycle of periodic tariff review (November 2008). Thus, annual amortization average rate of special obligations is 3.5% and was determined taking into account distribution registration units. (i) There are no assets or rights belonging to the Federal Government in use at the subsidiary Light SESA. (ii) Construction in progress includes inventories of materials for projects totaling R$58,535 as of June 30, 2009 (R$69,437 on March 31, 2009) and a provision for inventory loss of R$2,599 (R$1,488 on March 31, 2009). (iii) In 2Q09, part of the expenses with the central management, in the amount of R$5,671 (R$5,541 in 2Q08), amounting to R$9,692 in 1H09 (R$9,841 in 1H08) was capitalized in Property, Plant and Equipment recorded by transfer from operating expenses group - general and administrative expenses.
11. INTANGIBLE ASSETS
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Grupo Light classifies Software as intangible assets, which are amortized at a rate of 20% p.a., and Right-of-Ways, which are not amortized, as represent the right to use certain areas of land, usually associated with a Transmission and Distribution Line.
12. SUPPLIERS
13. LOANS, FINANCING AND FINANCIAL CHARGES
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In addition to the collaterals indicated above, loans are guaranteed by other collaterals in the amount of R$33,450, guarantee of Light S.A. and receivables in the approximate amount of R$48,840. In May 2009, Light SESA concluded the 1st issuance of promissory notes, in the amount of R$100,000, in an operation coordinated by Votorantim, Ita-BBA, Bradesco, Citibank and BNP. Promissory notes are remunerated at 125% of CDI rate, 1-year maturity and were redeemed in advance upon the conclusion of the 6th issuance of simple debentures of Light SESA see Note 32. The principal of loans and financing matures as follows (excluding financial charges):
In percentage terms, the variation of major foreign currencies and economic ratios in the period, which are used to adjust loans, financing and debentures, was as follows in the periods:
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Covenants The funding of CCB Bradesco, loans with ABN Amro and BNDES FINEM, classified as current and non-current requires that the Company maintain certain debt ratios and interest coverage. In the period ended June 30, 2009, the Company and its subsidiaries are in compliance with all required debt covenants.
14. DEBENTURES AND FINANCIAL CHARGES
The portions related to the principal of debentures have the following maturities (excluding financial charges):
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Covenants Classified in the current and non-current, the 5th Issuance of Debentures requires the maintenance of indebtedness indicators and coverage of interest rates. In the period ended June, 2009, the Company and its subsidiaries complied with all the covenants required. 15. REGULATORY CHARGES CONSUMER CONTRIBUTIONS
Consolidated 6/30/2009 3/31/2009 CURRENT Fuel usage quota CCC Energy development account quota CDE Reversal global reserve quota RGR Charges for capacity and emergency acquisition 10,954 17,173 6,699 76,044 110,870 8,811 17,173 6,699 76,044 108,727
16. PROVISION FOR CONTINGENCIES Light S.A. and its subsidiaries are party 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 counsels opinion records a provision when unfavorable decisions are probable and whose amounts are quantifiable. In addition, the Company does not record assets related to lawsuits with a less-than-probable chance of success, as they are considered uncertain. Provisions for contingencies are as follows:
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16.1 Labor Contingencies There are 3,863 labor-related legal proceedings in progress (3,971 on March 31, 2009) in which the Company and subsidiaries are the defendants. These labor proceedings mainly involve the following matters: overtime; hazardous work wage premium; equal pay; pain and suffering; subsidiary/joint liability of employees from outsourced companies; difference of 40% fine of FGTS (Government Severance Indemnity Fund for Employees) derived from the adjustment due to understated inflation. We point out that in December 2007, the subsidiary Light SESA was notified to reply to a public civil action filed by the Public Prosecution Office of Labor of the 1st Region, contesting on court the fact that the Company engages other companies to provide services related to its main and ancillary activities. Referred lawsuit was granted relief on April 4, 2008. A suspensive effect was granted to the Ordinary Appeal lodged by Light SESA. On March 25, 2009, Lights Ordinary Appeal was heard and granted by unanimous vote of the 8th Chamber of the Regional Labor Court. Light filed a review appeal restricted to standing to sue. Light SESAs legal counsels believe in a favorable decision in these actions. 16.2 Civil Contingencies The Company and its subsidiaries are defendants in approximately 40,220 civil legal proceedings (39,866 on March 31, 2009), of which 13,375 are in the state and federal courts (Civil Proceedings), among which those claims that can be accurately assessed amounting to R$494,646 (R$609,132 on March 31, 2009) and 26,845 are in Special Civil Courts, with total claims amounting to R$365,314 (R$399,072 on March 31, 2009).
a) The Provision for civil proceedings comprises lawsuits in which Light SESA is the defendant 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 as well as consumers challenging the amounts paid. The Company is also party to civil proceedings that Management believes that risk of loss are less than probable, based on the opinion of its legal counsels. Therefore, no
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provision was established. The amount, currently assessed, represented by these claims is R$330,819 (R$335,856 on March 31, 2009). Light SESA is also involved in Public and Class Civil Actions, contesting in court fees, rates and charges, contracts, equipment, Cruzado Plan, interest, among others. Up to June 30, 2009, the Management could not assess the amount involved in each one of these actions due to their nature, comprehensiveness and need of settlement of these claims. On November 18, 2008, the Company, managers and shareholders took cognizance of a class civil action filed by an individual at the Court of Belo Horizonte, in the state of Minas Gerais, alleging among others, irregularities in the acquisition of share control of Light S.A.. The attorneys defending this action deem as remote the chances of an unfavorable decision. 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 moving average of the last 12 months of condemnation amount. c) There are civil actions in which some industrial consumers have challenged, in court, the increases in electric power tariff rates approved in 1986 by the National Department of Water and Electric Power (Cruzado Plan). 16.3 Tax Contingencies The provisions established for tax contingencies are as follows:
a) PIS/COFINS: Light SESA was party of two lawsuits contesting on court the charge of these contributions, pursuant to Law 9,718/98, as follows: In the first one, Light SESA challenged in court the changes introduced by said Law
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concerning (i) the increase in their calculation basis and (ii) increase in COFINS rate from 2% to 3%. In the appeal filed by Light SESA in Supreme Federal Court it was rendered a final and unappealable decision regarding the increase of calculation basis, considering an unconstitutionality action of Article 3, paragraph 1, of Law 9,718/98, with the respective reversal of the provision taking place in the 2nd quarter of 2008, in the amount of R$432,358, in counterpart to the financial expenses item. In the second one, Light SESA has been challenging the lapse of enforceability of part of the amounts claimed in the January 31, 2007 Collection Letter issued by the Internal Revenue Service, as the federal tax authorities did not request payment within the legal term. A temporary injunction was granted and maintained by the Regional Federal Court to suspend the charge, and currently the appeals to Higher Courts are pending judgment. In relation to the merits, the judgment in low court is awaited, and, according to the Companys legal counsels, the decision is estimated as a possible loss. On June 30, 2009, the amount of R$219,652 (R$217,156 on March 31, 2009) related to the increase in the COFINS rate from 2% to 3% remains provisioned. b) PIS/COFINS RGR and CCC: The contingency amount corresponds to the portion not included in PAES payment in installments regarding the application of the ex-officio fine, in which Light SESA was not successful in the regulatory cases but had a favorable court decision, in which the Company awaits the appeal decision of the Federal Government. This amount also includes the portion corresponding to the increase in the COFINS rate related to the period of April 1999 to December 2000, which is being argued in court. c) INSS Tax Infringement Notices: In December 1999, the INSS issued tax infringement notices to the Company on the grounds of joint liability, withholdings on services rendered by contractors, and levy of the social security contribution on employee profit sharing. The variation in the amount between June 30, 2009 and March 31, 2009 is due to the adjustment based on the SELIC rate. d) INSS Quarterly: Light SESA challenges the constitutionality of Law 7,787/89, which increased the rate of social security contribution taxes assessed on payroll, noting that there was a consequent increase in the calculation basis in the period from July to September 1989. Light SESA was able to offset the social security contribution amounts payable according to advance protections that was previously granted. Management recorded provision, for the total amount of the tax infringement notices issued by the INSS based on the legal counsels opinion. The variation in the amount between June 30, 2009 and March 31, 2009 is due to the adjustment based on the SELIC rate. e) Law nr. 8,200/91: The provision recorded is due to the fully use of the 1991 and 1992 depreciation expenses, and no longer apply the provisions of Law 8,200/91, Article 3, item I. The lawsuit was accepted by the lower and higher courts, and the appeal filed by the Federal Government in Supreme Federal Court is pending judgment. The variation
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in the amount between June 30, 2009 and March 31, 2009 is due to the adjustment based on the SELIC rate.
f) ICMS: The provision recorded is mainly related to litigation on the application of State Law nr. 3,188/99, which limited the manner of receiving credits from ICMS levied in the acquisitions of assets allocated to property, plant and equipment, requiring the receipt in installments, while this limitation was not provided for in the Complementary Law 87/96. There are other tax infringement notices which have been challenged at the regulatory and judicial levels. The adjustment of this provision is annually carried out, in January, by UFIR (Fiscal Reference Unit). g) Social Contribution: The provision recorded is related to (i) deductibility of interest on capital paid to shareholders in calendar year 1996 from the CSLL (Social Contribution on Profit) tax basis, in which the preliminary injunction was granted and a guarantee was partially granted, and the appeal filed by the Federal Government is pending judgment; and (ii) lack of addition of the amounts related to the PIS/COFINS provision to the social contribution calculation basis, the payment of which was suspended. With the completion of administrative level, a tax foreclosure has been filed and the Company made a full deposit of litigated amount, as well as it filed a motion to stay execution. The variation of amount between June 30, 2009 and March 31, 2009 refers to the adjustment by SELIC. h) Economic Intervention Contribution Credit (CIDE): It is the provision related to CIDE levied on service payments remitted abroad. The low court decision was unfavorable, and Light SESA awaits the appeal judgment. Since December 2003, the subsidiary has been paying the amounts due. The Company and its subsidiaries are also parties to tax, regulatory and legal proceedings in which Management, based on the opinion of its legal counsels, believes the risks of loss are possible, and based on that no provision was recorded. Currently, the quantifiable amount of these proceedings is R$1,152,300 (R$1,128,900 on March 31, 2009). The main tax proceedings deemed as possible loss or that had effects in the second quarter of 2009 are pointed out as follows: (i) IN 86. Light SESA was subjected to a fine by the Internal Revenue Service due to the fact that the Company did not comply with service of process for the delivery of electronic files between 2003 through 2005. The challenge was deemed groundless. Currently, the voluntary appeal lodged by Light is pending judgment. The restated amount of the fine up to June 30, 2009 is R$232,200 (R$227,700 on March 31, 2009). (ii) ICMS (Aluvale). These are tax foreclosures related to the ICMS deferral in the supply of electric power for the consumer ALUVALE, an electro-intensive industrial
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consumer. A motion to stay was filed. Motions to stay were deemed groundless in three tax foreclosures and Light brought the corresponding appeals. The amount of these tax foreclosures at June 30, 2009 is R$168,800 (R$168,800 on March 31, 2009).
(iii) IRRF Disallowance of tax offset. Light was given a decision informing about the non-ratification to offset IRRF credits over temporary cash investments and IRRF of electricity bills paid by public authorities, which were offset due to negative balance of IRPJ in 2002. As a result, Light filed a Motion to Disagree, which is pending judgment. The amount involved on June 30, 2009 is R$176,100 (R$174,000 on March 31, 2009). (iv) Other. In addition to the cases mentioned above, there are other judicial and administrative litigations, deemed as probable losses by the legal counsels, mainly (a) ICMS on low-income subsidy; (b) transfer of ICMS credit (RHEEM company); (c) PIS, COFINS, IRPJ and CSLL Voluntary Disclosure; (d) ISS on regulated services; (e) nonratification of the COFINS offset with IRPJ negative balance; (f) no ratification of COFINS offset with CSLL negative balance 1999 calendar year; and (g) no ratification of COFINS offset with CSLL negative balance 2002 and 2003 calendar years. The amount involved in these litigations was R$149,400 on June 30, 2009 (R$149,200 on March 31, 2009). (v) Up to June 30, 2009, Light SESA received 18 lawsuits (7 on March 31, 2009) filed by business clients challenging PIS and COFINS transferred to electricity bill, pleading to refund all amounts unduly paid. According to the opinion of its attorneys, the chances of loss are deemed as possible, and no provision was recorded. (vi) Light SESA also has several discussions related to the Municipal Real Estate Tax (IPTU) and the Rural Land Tax (ITR), whose probability of loss is deemed as possible, according to its attorneys, and for this reason a provision was not recorded. The amount involved in these proceedings, as of June 30, 2009 is R$302,200 (R$302,200 on March 31, 2009). Remote Losses Proceedings deemed as remote losses by the Companys and subsidiaries legal counsels were not provisioned. 16.4 Other Contingencies a) Administrative Regulatory Contingencies The subsidiary Light SESA has regulatory contingencies derived from administrative challenges against ANEEL:
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a.1) Low Income The Monitoring Report RF-LIGHT-04/2007-SFE of August 2007 was prepared by ANEEL, between July 2, 2007 and July 13, 2007, challenged the granting of the social tariff to some consumers in the period and deemed as undue part of the subsidies ratified and received by Light SESA from Eletrobrs in the amount of R$266,379. The Company recorded a provision in the amount of R$53,381, to cover the probable risk of having to refund part of the subsidy already received. a.2) ANEELs Infringement Notice 009/2005 the notice was issued on March 15, 2005 under the argument that Light SESA had: (i) incorporated the subsidiaries LIR Energy Limited and Light Overseas Investments without prior consent of ANEEL (R$1,144); (ii) performed operations with these companies without prior consent of ANEEL (R$2,287); and (iii) not complied with ANEELs order of cancelling operations and closing companies activities (R$3,431). After appeals had been filed, the fine related to item (iii) was excluded, and fines associated with items (i) and (ii) were maintained. The penalty associated to item (ii) was paid, while a writ of mandamus was filed regarding the fine related to item (i), with court deposit in the amount of R$1,655 (original amount restated by the SELIC rate up to the deposit date). After decision rendered on November 23, 2007 of refusing writ of mandamus security, the Requests of Clarification were filed, and consequently rejected by decision rendered on December 17, 2007. Against the judgment, Light SESA filed an appeal on January 25, 2008, requiring a supersedeas to that appeal. On September 10, 2008, a decision was rendered to which an appeal was filed for remanding purposes only. Finally, on September 17, 2008, Bill of Review 2008.0.00.046455-8 was filed, in order to obtain the supersedeas to the appeal, avoiding the fact that the amounts expended in the lawsuit were verified. The Bill of Review was distributed to the Federal Superior Court Judge, who still did not issue an opinion on the request of advance protection. The amount as of June 30, 2009 is R$2,048 (R$2,001 on March 31, 2009). b) Environmental Contingencies The public civil action proposed by the Municipality of Barra do Pira against Light SESA, in which the plaintiff requests the remediation and recovery of several environmental damages caused by the construction of the Santa Ceclia and Santana plants, as an integral part of the transposition system of waters from the Rio Paraba do Sul basin to the Rio Guandu basin, feeding the Fontes, Nilo Peanha and Pereira Passos plants. Currently, the activity ceased, as the parties are trying to reach an agreement. There is a collection lawsuit concerning this public civil action which alleges that certain obligations were not complied with during the construction of the Santa Ceclia e Santana plants, particularly regarding the aggradation and reforestation of the region. The suggested lawsuit amounts to R$900. The ruling of the lawsuit equally depends on expert examination and it is not possible to estimate the value of a possible adverse judgment.
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The sum of historical lawsuit values is approximately R$16,000, and the likelihood of loss of both actions is possible. Despite this being a possible outcome, as of June 30, 2009, the provision was R$6,000. Due to deverticalization, this provision was recorded at Light Energia.
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17. OTHER PAYABLES
18. PENSION PLAN AND OTHER EMPLOYEE BENEFITS Light SESA sponsors Fundao de Seguridade Social BRASLIGHT, a nonprofit closed pension entity, whose purpose is to provide retirement benefits to the Companys employees and pension benefits to their dependents. BRASLIGHT was incorporated in April 1974 and has three plans - A, B and C established in 1975, 1984 and 1998, respectively, with about 96% of the active participants of the other plans having migrated to Plan C. Plans A and B are of the Defined Benefit type and Plan C provides mixed benefit. All are currently in effect. On October 2, 2001, the Secretariat for Pension Plans (SPC) approved an agreement for resolving the technical deficit and refinancing unamortized reserves, which are being amortized in 300 monthly installments beginning July 2001. Up to May 2009, they had been adjusted based on the IGP-DI (general price index domestic supply) variation (with one-month lag) and actuarial interest of 6% per annum. As of June 2009, IPCA (with one-month lag) replaced IGP-DI as restatement index. Transactions occurred in the quarters in net actuarial liabilities were the following:
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19. RELATED-PARTY TRANSACTIONS The Companys main shareholders are: Controlling Group - Rio Minas Energia Participaes S.A RME, jointly-owned subsidiary of Companhia Energtica de Minas Gerais CEMIG, Andrade Gutierrez Concesses, Luce do Brasil Fundo de Investimento em Participaes and Equatorial Energia. BNDESPAR
Direct and indirect interests in operating subsidiaries are outlined in the Note 1. A summary of related-party transactions occurred in the first six-month periods of 2009 and 2008 is presented below:
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* Equatorial Energia S.A.s subsidiary.
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A summary of agreements executed with related parties is presented below:
* Equatorial Energia S.A.s subsidiary. Related-party transactions have been executed under usual market conditions. Additional information agreements in progress Light, in order to potentialize its capacity of developing and implementing new generation projects and taking into account the recognized capacity in this area of its shareholder Companhia Energtica de Minas Gerais CEMIG (Cemig), Light entered into Heads of Agreement (Agreement) which, among other provisions, establishes that the parties will jointly prepare business plans for the development and implementation of energy generation projects (Generation Projects). The Agreement also determines that the parties will execute specific instruments for each of the Generation Projects to be implemented and the Companys interest directly or by means of its subsidiaries in each one of these consortia will be fifty-one percent (51%) and CEMIGs interest, directly or by means of its subsidiaries will be forty-nine percent (49%). Light, which already has in its portfolio projects under development, formalized by means of its subsidiaries, Lightger Ltda., Itaocara Energia Ltda. and Light Energia S.A., three consortium agreements with Cemig Gerao e Transmisso S.A. (Cemig GT),
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wholly-owned subsidiary of Cemig, aiming the exploration of hydroelectric projects in the regions of Paracambi, Itaocara and Lajes, respectively. All private instruments mentioned above were executed by the parties under suspensive conditions, therefore, their effectiveness relies on obtaining authorizations or endorsements required by regulatory authorities, including but not limited to ANEEL.
20. SHAREHOLDERS EQUITY a) Capital Stock The capital of Light S.A is represented by 203,934,060 common shares, without par value outstanding as of June 30, 2009 recorded as Capital Stock in the total amount of R$2,225,822 as follows:
At a meeting held on May 8, 2009, the Board of Directors approved the Companys capital stock increase, resulting from the exercise of rights inherent to the warrants occurred on April 3, 2009. The increase was made by means of the issuance of 282 outstanding common shares, without par value. 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 2). b) Capital Reserve
Light S.A., pursuant to CVM Resolution nr. 562 issued on December 17, 2008, recorded in Shareholders Equity, under Capital Reserves, the amount of R$42,504 (R$32,436 on March 31, 2009) related to the stock options granted to few officers, corresponding to the vesting period already incurred up to June 30, 2009, as per Note 31.
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21. ELECTRIC POWER SUPPLY

Consolidated 04.01 to 06.30 Residential Industrial Commerce, services and other Rural Public sector Public lightning Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY
(3)
Number of billed sales 2009 2008 3,651,775 12,002 269,417 11,016 10,159 432 1,309 328 3,956,438 3,956,438 3,956,438
(1) (2)
GWh 2009 1,860 459 1,477 12 352 171 271 17 4,619 4,619 1,134 353 1,487 6,106
(1)
R$ 2008 1,821 459 1,452 12 330 171 266 18 4,529 4,529 1,118 209 1,327 5,856 2009 610,268 106,182 466,013 2,264 111,313 25,707 55,388 1,377,135 504,911 (49,962) 1,832,084 80,931 13,815 94,746 1,926,830 2008 616,794 100,778 462,521 2,245 84,650 25,502 54,666 1,347,156 483,264 (36,557) 1,793,863 72,788 8,930 81,718 1,875,581
3,610,915 12,612 271,501 10,956 9,585 198 1,297 328 3,917,392 3,917,392 3,917,392
Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL
(1) Not revised by the independent auditors (2) Number of billed sales in June 2009, with and without consumption (3) Light SESA
Consolidated 01.01 to 06.30 Residential Industrial Commerce, services and other Rural Public sector Public lightning Public utility Own consumption Billed sales ICMS (State VAT) Unbilled sales TOTAL SUPPLY
(3)
Number of billed sales 2009 2008 3,651,775 12,002 269,417 11,016 10,159 432 1,309 328 3,956,438 3,956,438 3,956,438
(1) (2)
GWh 2009 4,024 892 3,059 25 712 339 536 34 9,621 9,621 2,259 482 2,741 12,362
(1)
R$ 2008 3,849 910 2,984 24 667 342 539 36 9,351 9,351 2,289 249 2,538 11,889 2009 1,328,805 208,486 961,038 4,809 223,146 51,116 108,224 2,885,624 1,068,876 (21,026) 3,933,474 159,295 19,602 178,897 4,112,371 2008 1,251,189 187,571 920,638 4,689 158,512 50,401 105,417 2,678,417 981,721 (44,801) 3,615,337 166,837 19,507 186,344 3,801,681
3,610,915 12,612 271,501 10,956 9,585 198 1,297 328 3,917,392 3,917,392 3,917,392
Electric power auction Short-term energy TOTAL SUPPLY OVERALL TOTAL
(1) Not revised by the independent auditors (2) Number of billed sales in June 2009, with and without consumption (3) Light SESA
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22. OTHER REVENUES
23. CONSUMER CHARGES (Operating Revenue Deductions)
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24. OPERATING COSTS AND EXPENSES

Consolidated Operating Expenses Selling General and Adm (4,851) (422) (14,310) (252) (66,543) (252) (86,630) (11,767) (744) (21,609) (8,649) (18,494) (18,276) (79,539)
04.01 to 06.30 Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 25) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Other Total
Cost of Service Electric Power Operation (811,854) (811,854) (46,045) (5,299) (27,984) (67,177) (4,274) (150,779)
2009 (62,663) (6,465) (63,903) (811,854) (76,078) (66,543) (18,494) (22,802) (1,128,802)
(Reclassified) 2008 (49,853) (3,579) (64,358) (715,575) (80,312) (47,384) (63,936) (18,540) (1,043,537)
Cost of Service 01.01 to 06.30 Nature of the expense Personnel and management Material Outsourced services Electricity purchased for resale (Note 25) Depreciation and amortization Allowance for doubtful accounts Provision for contingencies Other Total Electric Power (1,683,847) (1,683,847) Operation (78,634) (8,966) (53,439) (134,587) (8,973) (284,599)
Consolidated Operating Expenses Selling (8,284) (714) (27,327) (503) (126,708) (527) (164,063) General and Adm (37,838) (1,258) (41,942) (17,330) (23,881) (38,384) (160,633) 2009 (124,756) (10,938) (122,708) (1,683,847) (152,420) (126,708) (23,881) (47,884) (2,293,142)
(Reclassified) 2008 (103,949) (7,490) (126,692) (1,500,757) (159,365) (107,643) (79,815) (44,673) (2,130,384)
25. ELECTRIC POWER PURCHASED FOR RESALE
Consolidated 04.01 to 06.30 2009 CVA (Recoverable Cost Variation) Connection charges Spot market energy Network usage charges Itaipu UTE Norte Fluminense Other contracts and electric power auctions National Electric System Operator (O.N.S.) 1,404 1,583 3,519 6,506 GWh
(1)
R$ 2008 144 1,425 1,584 2,992 6,145 2009 36,794 (4,822) 13,113 (95,659) (160,790) (239,394) (356,869) (4,227) (811,854) 2008 (22,551) (3,882) (47,898) (86,599) (121,904) (189,708) (240,116) (2,917) (715,575)
(1) Not revised by the independet auditors
76
Consolidated 01.01 to 06.30 2009 CVA (Recoverable Cost Variation) Connection charges Spot market energy Network usage charges Itaipu UTE Norte Fluminense Other contracts and electric power auctions National Electric System Operator (O.N.S.) 568 2,791 3,150 7,292 13,801 GWh
(1)
June 30, 2009
LIGHT S.A.
03.378.521/0001-75
R$ 2008 588 2,845 3,168 6,338 12,939 2009 64,318 (9,574) (53,237) (194,951) (343,130) (476,191) (664,037) (7,045) (1,683,847) 2008 (8,202) (7,764) (167,910) (173,102) (249,485) (379,501) (509,791) (5,002) (1,500,757)
(1) Not revised by the independet auditors
26. FINANCIAL INCOME
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27. FINANCIAL INSTRUMENTS Below, we compared book and market values of Companies assets and liabilities:
a) Policy for utilization of derivatives The policy for utilization of derivative instruments approved by the Board of Directors determines the debt service protection (principal plus interest and commissions)
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denominated in foreign currency to mature within 24 months, forbidding any utilization for speculative purposes, whether in derivatives or any other risk assets. In line with provisions of this policy, the Company and its subsidiaries do not have futures contracts, options, swaptions, swaps with regret option, flexible options, derivatives embedded in other products, structured operations with derivatives and exotic derivatives. In addition, it is evidenced through the chart above that the single derivative instrument used by the Company and its subsidiaries is the non-cash currency swap (US$ versus CDI), whose Contractual Notional Value corresponds to the amount of foreign currency-denominated debt service to expire within 24 months, in line with the policy for the utilization of aforementioned derivatives. b) Risk management and objectives achieved The management of derivative instruments is conducted by means of operating strategies, aiming liquidity, profitability and safety. The control policy consists of permanently inspecting the policy compliance in the utilization of derivatives, as well as to monitor the rates contracted against those used in the market. c) Classification and measurement of financial instruments: Concerning the calculation of market value, below the following considerations: Loans and receivables: consumers, concessionaires and permissionaires (clients) are classified as held to maturity and are recorded by their original values, subject to provision for losses and present value adjustment, when applicable. Suppliers: are measured by the amortized cost method and therefore, recognized by their original value. Loans and financing: are measured by the amortized cost method. Market values were calculated at interest rates applicable to instruments with similar nature, maturities and risks, or based on market quotations of these securities. The market values for BNDES financing are identical to accounting balances, since there are no similar instruments, with comparable maturities and interest rates. In case of debentures, book and market values are identical, as there is no liquid trading market for these debentures as an accurate benchmark in the market calculation. Swap operations: are measured at the market value. The determination of market value used available information in 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 Future and Commodities Exchange BM&F Bovespa.
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It is worth mentioning that estimated market values of financial assets and liabilities were determined considering information available on the market and appropriate valuation methodologies. Nevertheless, meaningful judgment was required when interpreting market data to produce the most appropriate market value estimate. As a result, estimates do not necessarily indicate the amounts that may be realized in current exchange market. d) Risk Factors 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):
On June 30, 2009, according to the chart above, the foreign currency-denominated debt is R$111,414, or 5.19% of total debt. Nevertheless, if we include financial charges, this amount increases to R$116,272 (US$59,578, according to U.S. dollar quote of June 30, 2009), or 5.24% of the total debt. Financial derivative instruments were contracted for the amount of foreign currencydenominated debt service to expire within 24 months, in the swap modality, whose notional value on June 30, 2009 stood at US$25,909, according to the policy for utilization of derivative instruments approved by the Board of Directors. Thus, if we deduct this amount from total foreign currency-denominated debt, the foreign exchange exposure represents 2.96% of total debt. Below, we provide a few considerations and analyses on risk factors impacting on business of Grupo Light companies: Foreign exchange risk Considering that a portion of Light SESAs loans and financing is denominated in foreign currency, the Company uses derivative financial instruments (swap operations) to hedge service associated with these debts (principal plus interest and commissions) to
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expire within 24 months. Derivative operations resulted in an R$9,756 loss in the second quarter of 2009 (R$8,448 loss in the second quarter of 2008). The net amount of swap operations as of June 30, 2009 is negative at R$116 (negative R$11,394 in the second quarter of 2008), as shown below:
The amount recorded is already measured by its fair value on June 30, 2009. All operations with derivative financial instruments are registered in clearing houses for the custody and financial settlement of securities and there is no margin deposited in guarantee. Operations have no initial cost.
The sensitivity analysis for foreign exchange and interest rates fluctuations is presented, showing eventual impacts on financial result of the Company and its subsidiaries are presented below. The methodology used in the Probable Scenario was to consider that both foreign exchange and interest rates will keep the same level verified on June 30, 2009 until the end of year, maintaining steady liabilities, derivatives and temporary cash investments verified on June 30, 2009. It is worth highlighting that, as it refers to a sensitivity analysis of the impact on the 2009 financial result, the following factors were taken into
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consideration: the expenses and/or financial revenues amounts realized in 2Q09 and the projection of charges for the next six-month period on the debt balance on June 30, 2009. It is worth mentioning that the behavior of debt and derivatives balances will observe their respective contracts, and the balance of temporary cash investments will fluctuate according to the need or available funds of the Company and its subsidiaries.
* Loans closed in the second quarter, therefore, these will not change in the stress scenario.
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Considering the chart above, it is possible to identify that despite partial hedge against foreign currency-denominated debt (only limited to debt service to expire within 24 months), as R$/US$ exchange rate increases, liabilities financial expense also increases but financial revenues of derivatives also partially offset this negative impact and viceversa. Thus, cash is hedged due to the derivatives policy of the Company and its subsidiaries.
Interest rate risk This risk derives from impact of interest rates fluctuation not only over financial expense associated with loans and financing of subsidiaries, but also over financial revenues deriving from temporary cash investments. The policy for utilization of derivatives approved by the Board of Directors does not comprise the contracting of instruments against such risk. Nevertheless, the Company and its subsidiaries continuously monitor interest rates so that to evaluate eventual need of contracting derivatives to hedge against interest rates volatility risk. See below the sensitivity analysis of interest rate risk, evidencing the effects on variation results in the scenarios:
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Credit risk It derives from the Company and its subsidiaries eventually suffering losses deriving from default of counterparties or financial institutions depositary of funds or financial investments. To mitigate these risks, the Company and its subsidiaries adopt the analysis of financial and equity position of its counterparties as practice, as well as the definition of credit limits and permanent monitoring of outstanding positions. Concerning financial institutions, the Company and its subsidiaries only carry out operations with low-risk financial institutions classified by rating agencies.
28. INSURANCE The Company and its subsidiaries have insurance covering its main assets: The assumptions of risks adopted, given their nature, are not included in the scope of a special review; accordingly, they were not reviewed by independent auditors.
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Insurance coverage as of June 30, 2009 is considered sufficient by Management, as summarized below:
29. STATEMENT OF INCOME BY COMPANY
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30. TARIFF REVIEW Result of second periodic tariff review of Light SESA: At a public meeting held on November 4, 2008, ANEEL established, temporarily, the structural tariff repositioning of Light Servios de Eletricidade S/A at 1.96%, which took effect on November 7, 2008. Considering the 2.30% financial additions, the tariffs impact was 4.27%. In view of the tariff basis withdraw of a -0.41% financial component that had been added to the 2007 annual readjustment, the average effect on the tariff to be acknowledged by the consumers corresponded to 4.70%. It is worth mentioning that the level of regulatory losses and the calculation of efficient operating costs (Benchmark Company and Default) are provisional. ANEEL temporarily established a component Xe of X Factor, to be applied as reducer, in real terms, of Portion B in the subsequent tariff readjustments, from 2009 to 2012, at 0.00%. With the conclusion of methodology improvements for the second cycle of tariff reviews on November 25, 2008, definite amounts of Lights tariff review process will be established as per following schedule: Proposal to make it available on the Internet for document exchange Companys and other agents opinion about the proposal available on the Internet Process to be resolved at the board of executive officers meeting As of 8/11/2009 Up to 9/8/2009 10/13/2009
31. LONG-TERM INCENTIVE PLAN a) Stock Incentive Plan Light S.A., pursuant to CVM Resolution nr. 562 issued on December 17, 2008, recorded an increase of R$10,068 in its shareholders equity, under capital reserves, corresponding to the vesting period incurred in the second quarter of 2009, totaling R$42,504 (R$32,436 on March 31, 2009) referring to stock options granted to few officers. b) Phantom Options Incentive Plan The Company accrued the amount of R$1,033 related to the vesting period incurred in the second quarter of 2009, in counterpart to the item of personnel expenses, totaling an amount of R$6,412 (R$5,379 on March 31, 2009).
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32. SUBSEQUENT EVENTS Secondary Offering of Shares On July 14, 2009, the notice announcing the commencement of Light S.A.s secondary offering was published, where 29,470,480 shares were tendered, corresponding to 14.4% of the Companys capital stock. The offering price established in a bookbuilding process was twenty-four reais (R$24.00), totaling R$707,292. Issuance of Debentures At the end of July 2009, Light SESA concluded its 6th issuance of simple nonconvertible debentures. The issuance amounted R$300,000, remunerated at 115% of CDI rate, established in a bookbuilding process, compared to the initial expected remuneration of 133% of CDI rate. The debentures were issued on June 1, 2009 and were approved by CVM on July 21, 2009, Cash receipt was recorded on July 24, 2009 and they will be amortized in a lump sum on June 1, 2011, mainly destined to redeem in advance the 1st issuance of Light SESA promissory notes, in the amount of R$100,000, besides strengthening the Companys working capital. Contracting of EPC (Engineering Procurement Construction) to build Paracambi small hydroelectric power plant (PCH) At a meeting held on August 7, 2009, the Board of Directors approved to contract a consortium to build PCH Paracambi. The total cost of this project is approximately R$195 million and works are expected to start next September, and start-up is scheduled for August 2011.
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BOARD OF DIRECTORS MEMBERS SrgioAlair Barroso Djalma Bastos de Morais Eduardo Borges de Andrade Ricardo Coutinho de Sena Carlos Augusto Leone Piani Firmino Ferreira Sampaio Neto Aldo Floris Carlos Roberto Teixeira Junger Elvio Lima Gaspar Jose Luiz Silva Ruy Flaks Schneider ALTERNATES Luiz Fernando Rolla Joo Batista Zolini Carneiro Joo Pedro Amado Andrade Paulo Roberto Reckziegel Guedes Ana Marta Horta Veloso Paulo Jernimo Bandeira de Mello Pedrosa Lauro Alberto de Luca Ricardo Simonsen Joaquim Dias de Castro Carmen Lcia Claussen Kanter Almir Jos dos Santos
FISCAL COUNCIL MEMBERS Ari Barcelos da Silva Isabel da Silva Ramos Kemmelmeier Eduardo Grande Bittencourt Maurcio Wanderley Estanislau da Costa Aristteles Luiz Menezes Vasconcellos Drummond ALTERNATES Eduardo Gomes Santos Leonardo George de Magalhes Ricardo Genton Peixoto Mrcio Cunha Cavour Pereira de Almeida Joo Procpio Campos Loures Vale
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BOARD OF EXECUTIVE OFFICERS Jos Luiz Alqures Chief Executive Officer
Ronnie Vaz Moreira Vice Chief Executive Officer and Investor Relations Officer
Roberto Manoel Guedes Alcoforado Vice Chief Operations and Clients Officer
Paulo Henrique Siqueira Born Officer
Ana Silvia Corso Matte Officer
Luiz Fernando de Almeida Guimares Officer
Paulo Roberto Ribeiro Pinto Officer CONTROLLERSHIP AND PLANNING SUPERINTENDENCE Elvira Madruga B Cavalcanti Luciana Maximino Maia Controllership and Planning Superintendence CPF 590.604.504-00 ACCOUNTANT Accounting Manager CPF 114.021.098-50 CRC-RJ 091476/O-0
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REVIEW REPORT OF INDEPENDENT AUDITORS

KPMG Auditores Independentes CRC SP-14428/O-6 F-RJ

Vnia Andrade de Souza Accountant CRC RJ-057497-O-2

June 30, 2009

Brazilian Corporation Law

151 151 3.110.552 3.206.948

121 121 2.979.068 3.483.060

June 30, 2009

Brazilian Corporation Law

70 28 42 91.770 134 1.427 93.471 -

167 4 5 499.638 26 1.251 501.091 -

980.340 903.848 330.434 1.014.479 912.649 204.915 4.346.665 -

1.024.129 920.911 327.842 1.010.231 924.219 223.728 4.431.060 -

2.225.822 555.426 42.504 289.725 3.113.477 3.206.948

2.225.819 555.426 32.436 168.288 2.981.969 3.483.060

2.225.822 555.426 42.504 289.725 3.113.477 9.198.126

2.225.819 555.426 32.436 168.288 2.981.969 9.530.895

June 30, 2009

Brazilian Corporation Law

GROSS OPERATING PROFIT OPERATING EXPENSES Selling General and administrative 24 24

(11.623) (11.623) 133.012

(22.466) (22.466) 311.336

(1.339) (1.339) 404.639

(2.373) (2.373) 509.076 -

EQUITY ACCOUNTING FINANCIAL REVENU ES (EXPENSES) Revenues Expenses 26 26

1.103 (241) 862

June 30, 2009

Brazilian Corporation Law

GROSS OPERATING PROFIT OPERATING EXPENSES Selling General and administrative 24 24

(86.630) (79.539) (166.169) -

(164.063) (160.633) (324.696) -

(65.753) (125.148) (190.901) -

(144.227) (210.290) (354.517) -

EQUITY ACCOUNTING FINANCIAL REVENUES (EXPENSES) Revenues Expenses 26 26

39.259 (50.789) (11.530)

85.528 (121.810) (36.282)

99.970 321.112 421.082

154.028 183.094 337.122

1.909 (4.293) (2.384) 130.582 -

8.023 (5.126) 2.897 384.323 -

(291) (5.362) (5.653) 669.464 -

16.521 (4.298) 12.223 832.279 -

130.582 (2.279) 128.303 (6.866) 121.437 0,59547 203.934.060

384.323 (80.524) 303.799 (14.074) 289.725 1,42068 203.934.060

669.464 (276.535) 392.929 (4.325) 388.604 1,90995 203.462.739

832.279 (328.022) 504.257 (12.190) 492.067 2,41846 203.462.739

June 30, 2009

Brazilian Corporation Law

LIGHT - S.A. STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (In thousands of reais)

June 30, 2009

Brazilian Corporation Law

June 30, 2009

Brazilian Corporation Law

LIGHT - S.A. CASH FLOW STATEMENTS (In thousands of reais)

June 30, 2009

Brazilian Corporation Law

June 30, 2009

Brazilian Corporation Law

NOTES TO THE QUARTERLY INFORMATION AS OF JUNE 30, 2009

June 30, 2009

Brazilian Corporation Law

February 2001 March 2001