May 2007
2nd Annual Brazil Conference – Itaú Securities
2
Disclaimer
This presentation may include forward-looking statements of future events or results according to regulations
of the Brazilian and international securities and exchange commissions. These statements are based on
certain assumptions and analysis by the company that reflect its experience, the economic environment and
future market conditions and expected events, many of which are beyond the control of the company.
Important factors that may lead to significant differences between the actual results and the statements of
expectations about future events or results include the company’s business strategy, Brazilian and
international economic conditions, technology, financial strategy, public service industry developments,
hydrological conditions, financial market conditions, uncertainty of the results of future operations, plans,
objectives, expectations and intentions, among others. Considering these factors, the actual results of the
company may be significantly different from those shown or implicit in the statement of expectations about
future events or results.
The information and opinions contained in this presentation should not be understood as a recommendation
to potential investors and no investment decision is to be based on the veracity, current events or
completeness of this information or these opinions. No advisors to the company or parties related to them or
their representatives shall have any responsibility for whatever losses that may result from the use or contents
of this presentation.
This material includes forward-looking statements subject to risks and uncertainties, which are based on
current expectations and projections about future events and trends that may affect the company’s business.
These statements include projections of economic growth and energy demand and supply, as well as
information about the competitive position, the regulatory environment, potential opportunities for growth
and other matters. Several factors may adversely affect the estimates and assumptions on which these
statements are based.
3
Geographical Presence
Generation
Distribution
Legend
• Installed capacity: 17 MW
• Installed capacity: 31 MW
PANTANAL ENERGPANTANAL ENERGÉÉTICATICA
COSTA RICACOSTA RICA
• Distrib. energy: 3,126 GWh
• Clients: 690 thousand
• Municipalities: 73
• Concession area: 328,316 Km2
• N. inhabitants: 2.1 million
ENERSUL ENERSUL
• Distrib. energy: 12,763 GWh
• Clients: 1,365 thousand
• Municipalities: 28
• Concession area: 9,644 Km2
• N. inhabitants: 4.4 million
• Installed capacity: 293 MW
CESA and ENERGESTCESA and ENERGEST
• Distrib. energy : 8,060 GWh
• Clients: 1,059 thousand
• Municipalities: 70
• Concession area: 41,241 Km2
• N. inhabitants: 3.2 million
ESCELSA ESCELSA
• Installed capacity: 250 MW(adjusted for Energias do Brasil’s stake)
LAJEADO PLANTLAJEADO PLANT
• Installed capacity: 452 MW
PEIXE ANGICAL PLANT PEIXE ANGICAL PLANT
In 2006, Energias do Brasil distributed 24 TWh to 3.1 million consumers
BANDEIRANTE BANDEIRANTE
4
Current Organizational Structure
EDP GroupEDP Group
62.4% 37.6%
Market
Legend
% of the Total Capital
Notes:
1 Voting capital, also represents the percentage of installed capacity allocated to Energias do Brasil. Energias do Brasil holds 23.05% of its total capital
2 Includes Escelsa’s generation assets
3 Includes Enersul’s generation assets
DistributionCommercializationGeneration
Peixe Angical
Enersul
Escelsa
Enertrade BandeiranteLajeado
100.0%100.0%27.65% 1
100.0%
60.0% 100.0%
Energest2
100.0%
Costa Rica
51.0%
Pantanal Energética3
100.0%
CESA2
100.0%
Focus on transparency and competitiveness
1Q07 Results
6
Operating Performance
3,136 3,214
2,037 2,105
793 8235,966 6,143
1Q06 1Q07Bandeirante Escelsa Enersul
720
1,469
1Q06 1Q07
1,354 1,462
303 2351,657 1,697
1Q06 1Q07Other ENBR Group companies
Volume of Energy Distributed (GWh) Volume of Energy Produced (GWh)
Volume of Energy Commercialized (GWh)
3.0% 104%
2.4%
Technical and Commercial Losses
8.5% 9.3% 8.9% 8.9%
4.1% 3.9% 4.0% 4.1%
12.6% 13.2% 12.9% 13.0%
Jun/05 Mar/06 Dec/06 Mar/07
Technical Commercial
7
9861,114
79%82%
11%7%
10%11%
1Q06 1Q07
Distribution Generation Commercialization
282
339
71%78%
27%
16%
2%
6%
1Q06 1Q07
Distribution Generation Commercialization
99
128
1Q06 1Q07
Financial Performance
Net Revenues (R$ million) EBITDA (R$ million)
Net Income (R$ million)
13.0% 20.2%
28.9%
EBITDA by Business Segment
Obs: Consolidated EBITDA considers intercompany eliminations
Business Segment 1Q07 1Q06 ∆%
Distribution 246.1 223.1 10.3%
Generation 94.5 47.4 99.5%
Commercialization 6.6 17.6 -62.7%
8
EBITDA Margin
28.6%
EBITDA (R$ million)
EBITDA 1Q06 x 1Q07 (R$ million)
1Q06 Distribution
Generation
Commerc. Contingencies
Bad DebtOpex Other 1Q07
Tariff *
282+19
+63 +18 -10-5-7 -23
+2 339
* Enersul’s tariff readjustment and change in Bandeirante’s RAB
EBITDA Margin
30.4%
9
Costs and Expenses
Manageable costs should be reduced as result of efficiency programs
Costs and ExpensesBreakdown 1Q07
Breakdown of Manageable Expenses
R$ 775 R$ 775 millionmillion
Non-manageable
costsR$ 549 million
(71%)
Manageablecosts
R$ 226 million(29%)
Manageablecosts
R$ 226 million(29%)
Note:
1 Depreciation and amortization were excluded
Manageable Expenses
R$ million 2007 2006 ∆
Personnel 69.8 70.8 -1.0 -1.4%
Material 9.7 8.1 1.5 18.6%
Third Party Services 78.6 67.3 11.3 16.8%
Provisions 36.5 21.6 14.9 68.9%
Other 31.7 19.9 11.8 59.4%
Total 226.2 187.7 38.5 20.5%
∆ %
1st
Quarter
Third Party Services
+ R$ 3.0 MM: O&M Peixe Angical
+ R$ 5.5 MM: Market growth
Provisions
+ R$ 10.5 MM: labor contingencies
Other
+ R$ 6.0 MM: shortfall in reconciliation of accounts between ENBR and Investco
10
1Q07 1Q06 Var.%
Financial Revenues 62.5 69.8 -10.5%
Financial Expenses (99.7) (91.0) 9.6%
Net FX Result (20.2) (17.6) 14.8%
Net result from SWAP operations (39.7) (54.7) -27.4%
FX gains (losses) 19.5 37.1 -47.5%
Total (57.4) (38.8) 48.1%
Financial Financial ResultResult (R$ (R$ millionmillion))
Financial Revenues– Reduction in remuneration of regulatory assets due to fall in Selic basic interest
rate
Financial Expenses– End of interest capitalization on Enerpeixe’s debt
Financial Result (R$ million)
11
Investments and Indebtedness
1,850
3,126
1,879
(734)
(542)
Gross DebtMar.07
(-) Cash andMarketableSecurities
(-) RegulatoryAssets andLiabilities
Net DebtMar.07
Net DebtDec.06
3%
33%
4%
60%
US$ TJLP
Fixed rate Floating rate
Total Debt Index(Mar/07)
** Includes Selic, CDI, IGP-M and INPC
Indebtedness – 1Q07 (R$ million)Net Debt evolution
1.8x1.8x1.6x1.6x**
Net Debt / Ebitda
Investments* – excluding “Luz para Todos” (R$ million)
Distribution Generation
2007 (E) 1Q07 (A)
192
466
5422
658
76
Universalization Program -including “Luz para Todos”
(R$ million)
2007 (E) 1Q07 (A)
105
16
* Does not include interest capitalization and/or new generation projects
**
Growth & Value Creation
13
Growth & Value Creation
Our strategy to become a benchmark in the Brazilian utilities sector reliesbased on 4 pillars
EDP Group expertise Financial Discipline
Operating Efficiency Growth in Generation
14
CorporateRestructuring
IT Projects. Aliança. Integração. SitBrasil
OPEX Program
Project Vanguarda -Phase 1• Redundancy Program
Value Creation
New Organizational Structure
3
EDP GroupEDP Group
62.4% 37.6%
Market
Legend
% of the Total Capital
Notes:
1 Voting capital, also represents the percentage of installed capacity allocated to Energias do Brasil. Energias do Brasil holds 23.05% of its total capital
2 Includes Escelsa’s generation assets
3 Includes Enersul’s generation assets
DistributionCommercializationGeneration
Peixe Angical
Enersul
Escelsa
Enertrade BandeiranteLajeado
100.0%100.0%27.65% 1
100.0%
60.0% 100.0%
Energest2
100.0%
Costa Rica
51.0%
Pantanal Energética3
100.0%
CESA2
100.0%
Focused on transparency and competitiveness
2005
2006
2006/7
Annualized savings resulting from Project Vanguarda –
Phase 1
~ R$ 68.4 MM
Project Vanguarda – Phase 2
15
516 MW
1.018 MW
1.043 MW
Generation – Installed Capacity (MW)
Jucu Fruteiras
AlegreSuiça
Viçosa Rio Bonito
Coxim S. João II
Mimoso S. João I
Costa Rica
Paraíso
Lajeado
Corumbá
MascarenhasPeixe Angical+452MW * 4th Eng.
+50MW *
* Capacity added in 2006** Startup of commercial operations in April 07
São João: +25MW**
16
Participation in energy auctions
Acquisition of existing assets
Coal and biomass thermal plants: preliminary studies
PCHs under construction: +29 MW (Santa Fé)
Power upgrades: +50 MW (under study)
19 PCHs projects to be presented to ANEEL: +438 MW
Feasibility studies for 7 hydro power plants: +590 MW (235
MW in partnership with Eletronorte)
Authorization to build coal-fired thermal plant: +350 MW
(UTE Maranhão)
Creating Growth Opportunities
17
Permits to exploit PCHs are granted based solely on approval
of projects presented (no auction)
Energias do Brasil is currently working on 19 PCH projects
– Average cost per project: R$ 0.55 million
– Estimated conclusion of projects and filing at ANEEL: Feb/08
– Estimated time for grant of permit: 3-4 months after filing of projects,
conditional to approval of projects presented
PCH (Small Hydro Plant) Projects
State # of ProjectsTotal Capacity
(MW)ES 4 74
ES/MG 4 100
SP 3 66
MS 3 65
GO 5 133
Total 19 438
18
Concessions for Hydro Power Plants are sold in public auctions
Energias do Brasil currently has 7 feasibility studies for hydro
power plants under way
– Total estimated cost of studies: R$ 12.8 million (development costs
are fully refunded by acquirer of concession)
– Estimated conclusion of projects and filing at ANEEL: Aug/08
– Time for inclusion of studies in energy auctions is arbitrated by
ANEEL
Feasibility studies for Hydro Power Plants
State # of ProjectsTotal Capacity
(MW)TO* 2 235
MS 3 215
MG 2 140
Total 7 590* Studies developed in partnership with Eletronorte
19
In April 07, Energias do Brasil acquired the rights for Maranhão Thermal Plant
project (UTE Maranhão)
The project has been granted Preliminary Environmental License and is registered
for the next new energy auction, scheduled for June 07
– Installed capacity: 350 MW
– Estimated total investment: under analysis
– Estimated time for conclusion of works: 42 months after granting of Installation License
Maranhão Thermal Power Plant
20
100%
63%59% 59% 59%
14%
37% 41% 41% 41%
86%
2006-2011 2012 2013 2014 2015 2016
Contracted Energy Uncontracted Energy
Generation – Contracting Schedule
Potential to resell at attractive prices
Current Price: R$76/MWh121,81
126,77
114,28106,95
83,1375,46
67,33
57,51
2005-08 2006-08 2007-08 2008-08 2008-H30
2009-H30
2010-H30
2011-H30
......
OldOld EnergyEnergy AuctionAuction New/New/BotoxBotox EnergyEnergy AuctionAuction
Contracting Schedule * Prices in Recent Auctions
* Total assured capacity of 609 average MW (1,018 MW of installed capacity)
21
Corporate Governance
9 9 BoardBoard membersmembers
(2 (2 independentindependent andand 2 2 appointedappointed byby minorityminorityshareholdersshareholders))
4 4 BoardBoard CommitteesCommittees
TransparencyTransparencyCodeCode ofof EthicsEthicsBusiness PoliciesBusiness Policies((DividendsDividends//NegotNegot././
DisclosureDisclosure))
Audit Sustainability & Corp.Gov. Supervisory Remuneration
SarbanesSarbanes--OxleyOxley
22
90
100
110
120
130
140
150
160
170
180
190
200
210
7/12/2005 9/6/2005 11/4/2005 1/3/2006 3/3/2006 5/3/2006 6/29/2006 8/24/2006 10/23/2006 12/21/2006 2/23/2007 4/23/2007
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Volume R$ ENBR3 ENBR3 Ibovespa IEE IBX
Market Capitalization
+81%
+100%
+92%
+99%
VolumeR$ Th.
2005 Best Listed Company
HonorableMention
Ranked #1st Listed Company
Finalist Member in2006
Updated until April 30, 2007
Market Capitalization: R$5.4 billion
May 2007
www.energiasdobrasil.com.br