Financial and Operating Results

Second Quarter, 2007

2

Highlights

Operating Results

Financial Results

Agenda

3

Agenda

Highlights

Operating Results

Financial Results

4

Net Revenues totaled R$206.4 million in the 2Q07, 12.6% up year-on-yearEBITDA totaled R$93.6 million in the 2Q07 (EBITDA Margin of 45.3%), 42.3% up on the R$65.8 million recorded in the 2Q06Net Income reached R$34.1 million in the 2Q07, 66.2% up year-on-yearA subsidiária obtained on april-07 the accelerated depreciation fiscal benefit from SUDENEPrior authorization from ANEEL requested, for the implementation of a corporate restructuringplan, allowing CEMAR to book goodwilll of R$238.0 million and obtain fiscal benefits

Highlights

Energy sales (MWh) growth of 13.3% in the 2Q07, over 2Q06

In the 2Q07, CEMAR’s DEC and FEC ratios improved by 42.1% and 19.7%, respectively, comparedto the 2Q06

Financial Results

Operating Results

The Company will start the conversion of its non-voting shares into voting shares and the adhesionprocess to the Novo Mercado segment in Bovespa, upon ANEEL’s approval

Corporate Governance

5

Agenda

Highlights

Operating Results

Financial Results

6

• Growth of 7.0% in the customer base compared to 2Q06 (90.9 thousand new customers)

Customer Base

Customer Base Breakdown (% per Class)

Others – 4.8%

Ind. – 0.7%Comm. – 7.3%

Res. – 87.3%

Customer Base (thousands)

1,281 1,307 1,327 1,349 1,373 1,398

8.9% 8.7% 8.9%7.5% 7.2% 6.9%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Customers % Chg. Y-O-Y

7

Energy Volume

• Growth of 13.3% in billed energy volume over the 2Q06• Strong growth in the residential and industrial classes: 14.6% and 28.5%, respectively

• Market Growth Rate Guidance: 2007 – 7% to 9%;2008 and 2009 – between 6% and 7% p.a.; After 2009: 5% p.a.

Energy Volume per Class

Energy Load (% Chg. MWh)Brazil, NE and CEMAR – 2Q07 vs. 2Q06

Brazil - SIN Northeast CEMAR

5.5% 6.3% 11.0%

Billed Energy (% per Class)

Others – 23.7%

Ind. – 14.2%Comm. – 19.7%

Res. – 42.4%

CONSUMPTION CLASS (MWh) 2Q06 2Q07 % Chg. 1H06 1H07 % Chg.Residential 292,580 335,274 14.6% 575,030 645,525 12.3%

Industrial 87,245 112,085 28.5% 173,176 207,189 19.6%

Commercial 142,685 156,100 9.4% 280,664 300,246 7.0%Others (ex. own consumption) 175,296 187,058 6.7% 338,420 362,658 7.2%

TOTAL 697,806 790,517 13.3% 1,367,290 1,515,617 10.8%

8

Energy Balance and Losses

Energy Balance - MWh

Electricity Losses (LTM)

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

29.8% 29.6% 29.9% 29.5%29.8% 29.9%

• Energy required by CEMAR grew 11.0% in the 2Q07• Energy Losses stable

• Promising results, beggining to show the positive effects renderedby the work of the energy recovery team

Energy Balance (MWh) 2Q06 2Q07 % Chg. 1H06 1H07 % Chg.Required Energy * 984,167 1,092,214 11.0% 1,950,917 2,141,615 9.8%

Sales ** 699,926 791,834 13.1% 1,370,591 1,518,103 10.8%

Losses 284,241 300,380 5.7% 580,326 623,512 7.4%* Includes own generation** Includes energy sales to consumer classes, own consumption and supply to CEPISA

9

DEC and FEC

• Sound evolution in energy service quality• CEMAR’s DEC and FEC ratios improved by 42.4% and 20.0% in the last 12 months

• 2Q07 improvement even higher, purging supplier performance: 45.9% on DEC and 25.0% on FEC

DEC

14.410.9

6.9 6.7 7.85.9

1.1

0.9

0,9 0,91,9

0,9

15.5

11.8

7.8 7.6

9.8

6.8

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Distributor Supplier CEMAR

FEC

6.75.2

4.2 4.3 4.6 3.9

0,9

0,71,2 1,4 1,2

0,9

7.6

5.95.3 5.7 5.9

4.8

1Q06 2Q06 3T06 4T06 1T07 2T07

Distributor Supplier CEMAR

-25.0%-45.9%

10

Agenda

Highlights

Operating Results

Financial Results

11

Net Revenues

• Adjusting for the impact of the “CVA PLPT” over Net Revenues,CEMAR recorded an average growth rate of 22.3% p.a. between quarters

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

171.8 183.3 248.4 206.6 195.1 206.4

Net Revenues (R$ Million)

29.6% 27.9%

54.4%

7.8% 13.6% 12.6%

Net Revenues % Chg. Y-O-Y

171.8 183.3 211.8 219.0 203.2 216.1

29.6% 27.9%31.6%

14.3% 18.3% 17.9%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07Adjusted Net Rev. % Chg. Y-O-Y

Adjusted Net Revenues (R$ Million)

Average = 19.8% pa Average = 22.3% pa

12

Manageable Costs and Expenses

Manageable Costs and Expenses

• PMSO (excluding provisions) reached 13.8% of Net Revenues in the 2Q07, 4.1 p.p. below the 2Q06• Personnel: R$10.3 million in the 2Q07, 24.9% lower than 2Q06, due to the end of restructuring

• Third Party Services: network maintenance and collection increased expenses by 11.2% in the 2Q07• Other: avg. recurring reversal of R$1.5 million/quarter,

with administrative fees in energy recovery• Allowance for Doubtful Accounts and Losses in line with the guidance

provided to the market, of 2-3% of GOR

R$ Million 2Q06 2Q07 % Chg. 1H06 1H07 % Chg.Personnel 13.7 10.3 -24.9% 28.9 23.1 -19.9%Material 1.0 0.8 -17.8% 2.4 2.4 1.4%Services 14.6 16.3 11.2% 28.0 32.6 16.5%Others 3.5 1.0 -70.6% 6.2 2.1 -65.7%

PMSO 32.8 28.4 -13.5% 65.5 60.3 -7.9%PMSO (% Net Revenues) 17.9% 13.8% -4.1 p.p. 18.5% 15.0% -3.4 p.p.

Provisions 10.4 6.7 -35.2% 12.2 16.7 36.9%Allowance for Doubtful Accounts and Losses 8.2 4.0 -51.0% 8.6 11.7 35.5%

% of Gross Revenues 3.2% 1.4% -1.8 p.p. 1.7% 2.0% 0.3 p.p.Provision for Contigencies and Other Provisions 2.2 2.7 23.1% 3.6 5.0 39.7%

MANAGEABLE COSTS AND EXPENSES 43.2 35.1 -18.7% 77.7 77.0 -0.9%MANAGEABLE COSTS AND EXPENSES (% Net Revenues) 23.6% 17.0% -6.5 p.p. 21.9% 19.2% -2.7 p.p.

13

Productivity

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

25.8 25.4 23.0 22.4 23.5 20.5

PMSO per Customer (R$/Customer)

-19.3%

• Continuous productivity gains and effectiveness in manageable costs and expenses• 2Q07 posted a 19.3% decrease in PMSO per Customer, compared to 2Q06

• Increase of 11.7% in Customers per Employee, to 1,188 in the 2Q07, from 1,064 in the 2Q06

* Excludes third party workers

998 1,064 1,130 1,161 1,176 1,188

11.7%

Customers per Employee*

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

14

EBITDA and EBITDA Margin

EBITDA (R$ million) and EBITDA Margin (% of Net Revenues)

• EBITDA reached R$93.6 million in the 2T07, 42.3% up compared to R$67.6 million in the 2Q06• EBITDA Margin of 45.3% in the 2Q07, 9.4 p.p. higher than 2Q06

39.4%35.9%

43.9%47.5%

39.5%

45.3%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

EBITDA EBITDA Margin

67.6 65.8 109.2 98.1 77.0 93.6

42.3 %

15

Profitability

• Substantial improvements on profitability, measured by EBITDA• 2Q07 EBITDA per Customer increased by 12.9%, compared to 2Q06

• 25,7% increase on EBITDA per MWh, to R$118.4 in the 2Q07 from R$94.2 in the 2Q06

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

53.4 59.8 82.9 73.3 56.6 67.5

12.9 %

EBITDA per Customer (R$/Customer)

101.0 94.2 147.6 121.7 106.2 118.4

25.7 %

EBITDA per MWh (R$/MWh)

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

16

Income Tax and Social Contribution

• Using the Accelerated Depreciation benefit, the Company could record R$18.5 millionas tax credit reversal – net tax expense was positive in the amount of R$6.8 million

• Tax benefits obtained through SUDENE and the deferred tax asset compensation shouldlead effective tax expense to 6.0% at CEMAR and to 9.0% at Equatorial in 2007

Income Tax / Social Contribution (R$ million) 1H06 1H07Earnings Before Taxes (1) 76.9 135.9 Expense Income Tax/ Social Contribution (Income Statement) (26.1) (40.8) (+) Reversal in Tax Provision - 2005 (3.1) - (-) Deferred Tax Asset 10.5 37.8 (-) ADENE Incentive (Minority Interest) 5.7 3.2 (+) Reversl in ADENE Incentive 2006 (Minority Interest) - (0.8) (=) Income Tax/Social Contribution (13.0) (0.6) (+) Fiscal Credits - (6.0) (+)Retained Income Tax/Social Contribution - (2.4) (=) Tax - Cash Basis (2) (13.0) (9.0) Effective Tax Rate = (1)/(2) -16.9% -6.6%

17

21.4*

Net Income

* 1Q06 Pro Forma Net Income excludes R$12,5 MM of non recurring IPO related expenses

8.9 20.5 48.1 47.8 30.8 34.1

5.2%

11.2%

19.4%23.2%

15.8% 16.5%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07Net Income Net Margin

Net Income (R$ million) and Net Margin (% Net Revenues)

• 2Q07 Net Income up by 66.3%, to R$34.1 million, from R$20.5 million in the 2Q06

18

Indebtedness

* The sectorial index FINEL represents 20% of IGP-M

Gross Debt – 2Q07

• Gross Debt reached R$695.3 million on june-07, a R$100.8 million increase compared to the 4Q06i) R$5.6 million – RGR/Eletrobras (network expansion investments - CEMAR)

ii) R$28.0 million – 5th Tranche/BNB, (network expansion and energy recovery investments)iii) R$5.4 million – 3rd Issue of debentures (investments)

iv) R$18.6 million – RGR/Eletrobras (PLPT)v) R$28.5 million – BNDES (network maintenance, IT systems and energy recovery investments)

• Debt Profile: Average Cost of 11.0% p.a. (LTM) or 83.8% of CDI

Average Term of 9.2 years

Reference Avg. Spread (per year)

Avg. Due Date (month-year)

Avg. Maturity (in years)

Part. (%)

Libor Libor + 0,8% apr-18 11.0 0.8%IGP-M 17 years 4,0% jan-24 16.5 18.0%

TJLP 4,8% jul-13 6.2 4.4%Fixed (R$) 11,1% mar-17 9.9 13.4%

RGR 6,2% feb-17 9.8 9.8%Fixed (US$) 6,8% jun-20 13.1 1.0%

FINEL* 9,8% jan-16 8.8 8.5%CDI 105,4% of CDI may-13 6.1 44.1%

Maturity R$ million Total %Short Term 24.2 3.5%Long Term 671.1 96.5%

2008 15.6 2.2%

2009 47.0 6.8%

2010 49.5 7.1%

2011 118.8 17.1%After 2011 440.2 63.3%

Total 695.3 100.0%

19

Net Debt

886.3

Consolidated Net Debt (R$ million)

Gro

ssD

ebt

Net

Reg

.A

sset

s

Cas

h &

Cas

h Eq

.C

EMA

R

EQTL

Net

Deb

t2T

07

191.1

171.9

90.6

241.7

Ownership Adjusted Net Debt (R$ million)

454.4191.1

112.3

59.2

91.8

0.6 xEBITDA

0,4 xEBITDA

• Maintenance of a high liquidity level and low financial leverage

Cas

h &

Cas

h Eq

.

Gro

ssD

ebt

Net

Reg

.A

sset

s

Cas

h &

Cas

h Eq

.C

EMA

R

EQTL

Net

Deb

t2T

07

Cas

h &

Cas

h Eq

.

20

Consolidated Net Debt

• Maintenance of a high liquidity level and low financial leverage

Consolidated Net Debt (R$ million)and Net Debt / EBITDA (LTM)

331.9 179.8 105.1 105.0 176.0 241.7

1.5

0.70.3 0.3

0.5 0.6

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07Net Debt Net Debt / EBITDA (LTM)

21

CAPEX

*Excludes PLPT related direct investments

Others

Equipment and Systems

Network Expansion

Network Maintenance

CEMAR’s CAPEX (R$ million)

2Q06 2Q071Q06 1Q073Q06 4Q06

• CEMAR* investments reached R$45.0 million in the 2Q07• Energy sales growth led to revision of investment expectations

CAPEX 2007: R$200-R$220 million / CAPEX 2007-2009: R$500-R$550 million

27.022.3

31.5 31.5

45.0

56.1

12.8 13.0 14.0

29.6

8.714.3

8.3 5.0

12.8

16.4

18.1

27.1

3.84.2

4.5

9.5

1.9

3.3

2.20.2

0.2

0.5

2.9

0.4

22

PLPT (Luz para Todos – Light for All Program

Direct Investments PLPT (R$ million)

30.9

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

28.9 58.1 51.2 35.4 41.6

Connected Customers

10,688 11,619 18,134 22,490 8,759 7,763

50,82462,443

80,577

103,067111,826 119,589

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Quarterly Connections Accumulated Connections

44,0 %

23

Equatorial’s Share Performance – EQTL11

Price Evolution(3/31/06 = 100 to 7/31/07):

EQTL11 Total Return(Div.-R$1.64/UNIT): 51.5%

IBOV: 42.8IEE: 41.0%

Avg. Traded Volume: 2006 - R$3.1 million,

Last 60 days - R$6.8 million; Last 30 days - R$8.1 million

Price Evolution: EQTL11, Ibovespa and IEE (3/31/06 = 100 to 7/31/07)

Monthly Average of Daily Trading (R$ million)

apr/0

6

may

/06

jun/

06

jul/0

6

aug/

06

sep/

06

oct/0

6

nov/

06

dec/

06

jan/

07

feb/

07

mar

/07

apr/0

7

7.3 3.0 1.6 0.8 1.9 2.0 3.1 1.4 2.1 8.1 4.1 4.6 4.9 6.1 5.5

may

/07

jun/

07

jul/0

7

8.1

8090

100110120

130140150

160170

03/3

1/06

04/2

7/06

05/2

4/06

06/2

0/06

07/1

7/06

08/1

3/06

09/0

9/06

10/0

6/06

11/0

2/06

11/2

9/06

12/2

6/06

01/2

2/07

02/1

8/07

03/1

7/07

04/1

3/07

05/1

0/07

06/0

6/07

07/0

3/07

07/3

0/07

Pric

e Ev

olut

ion

EQTL11 IBOV IEE

24

Contact

Leonardo DiasCFO and Investor Relations Officer

Arnaldo FaissolInvestor Relations Manager

Phone1: +55 (98) 3217-2245Phone2: +55 (98) 3217-2113

Email: ri@equatorialenergia.com.brWebsite: http://www.equatorialenergia.com.br/ri

25

DISCLAIMER

This document may contain prospective statements, which are subject to risks and uncertainties, as they were based on the expectations of Company’s management and on available information. These prospects include statements concerning the Company’s current intensions or expectations for our clients; this presentation will also be available on our website www.equatorialenergia.com.br/ri and also in the IPE system at the Brazilian Security Exchange Commission – CVM.Forward-looking statements refer to future events which may or may not occur. Our future financial situation, operating results, market share and competitive positioning may differ substantially from those expressed or suggested by said forward-looking statements. Many factors and values that can establish these results are outside Company’s control or expectation. The reader/investor is prevented not to completely rely on the information above .The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are intended to identify affirmations. Such estimates refer only to the date in which they were expressed, therefore Company has no obligation to update said statements. This presentation does not consist of offering, invitation or request of subscription offer or purchase of any marketable securities. And, this statement or any other information herein, does not consist of a contract base or commitment of any kind.