2nd Annual Brazil Conference – Itaú Securities

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


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





CESA and ENERGESTCESA and ENERGEST

• Distrib. energy : 8,060 GWh

• Clients: 1,059 thousand




ESCELSA ESCELSA

• Installed capacity: 250 MW(adjusted for Energias do Brasil’s stake)

LAJEADO PLANTLAJEADO PLANT


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

Economy & Finance

2nd Annual Brazil Conference – Itaú Securities