March 2008
This presentation may include forward-looking statements of future events or results according to regulationsof the Brazilian and international securities and exchange commissions. These statements are based oncertain assumptions and analysis by the company that reflect its experience, the economic environment andfuture 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 ofexpectations about future events or results include the company’s business strategy, Brazilian andinternational 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 thecompany may be significantly different from those shown or implicit in the statement of expectations aboutfuture events or results.
DisclaimerDisclaimer
2
future events or results.
The information and opinions contained in this presentation should not be understood as a recommendationto potential investors and no investment decision is to be based on the veracity, current events orcompleteness of this information or these opinions. No advisors to the company or parties related to them ortheir representatives shall have any responsibility for whatever losses that may result from the use or contentsof this presentation.
This material includes forward-looking statements subject to risks and uncertainties, which are based oncurrent 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 asinformation about the competitive position, the regulatory environment, potential opportunities for growthand other matters. Several factors may adversely affect the estimates and assumptions on which thesestatements are based.
2007 Results2007 Results
█ Net income increases 11.6%
█ Consolidated EBITDA reaches R$ 1,123 MM in 2007, a growth of 4.6% yoy
█ EBITDA growth would be 16.3% if non-recurring items were eliminated
(negative impact of R$ 183.1 MM due to extraordinary reduction in Enersul’s RAB)
█ Generation segment’s EBITDA grows 62.1% reaching R$ 442 MM
Highlights of 2007Highlights of 2007
4
█ Generation contributes with 38% of consolidated EBITDA
█ Commercialization grows 7.2% yoy in volume and 25.7% yoy in margin
█ Net operating revenue from Distribution grows 9.6%
█ In Distribution, manageable expenditures per MWh distributed grow 5.5%, increasing less than inflation
█ Financial expenses decrease 22.5%
█ Company’s Board of Executive Officers restructured with the appointment of a new CEO
GenerationGeneration
Generation’s performance was outstanding in 2007, driven by Generation’s performance was outstanding in 2007, driven by the increase in capacity...the increase in capacity...
4,7585,568
Volume Energy Sales
(GWh)
3,9294,704
Volume of Produced Energy
(GWh)
+17.0%
+8.4%-9.3%
+19.7%
6
█ Operation of Peixe Angical HPP and the 4th generating unit at Mascarenhas HPP fully integrated throughout 2007
█ Startup of commercial operations at São João SHP
1,480N.A.
4Q06 4Q07 2006 2007
1,355N.A.
4Q06 4Q07 2006 2007
…which resulted in strong EBITDA growth…which resulted in strong EBITDA growth
88130
273
442
EBITDA
(R$ MM)
134 170
454
583
Net Revenue
(R$ MM)+28.3%
+26.5% +47.4%
+62.1%
7
4Q06 4Q07 2006 2007
3663
128
206
4Q06 4Q07 2006 2007
Net Income
(R$ MM)
4Q06 4Q07 2006 2007
+72.5%
+60.7%
█ EBITDA margin from generation increases to 75.8% in 2007 from60.1% in 2006
2009 2009 2012
360
29
1,043
2550452
40920*
1,452
Estimated start-up of
+39.2%
+102.1%
Installed capacity
(MW)
Installed capacity has almost doubled since 2005 and with Installed capacity has almost doubled since 2005 and with projects already underway, will almost triple in 2012projects already underway, will almost triple in 2012
8
2005 UHE Peixe Angical
4a Máq. Mascarenhas
PCH São João
Atual PCH Santa Fé Repotenciações
UTE Pecém 2012
334 645 980
* Includes 2.3 MW from the upgrading of Suíça HPP, still awaiting Aneel ratification
1,043
516
1,043
Estimated start-up of commercial operation
Assured Energy (average MW)
51.9%93.1%
Projects concluded since IPO
Projects in progress
DistributionDistribution
34% 34%
13%13%
37% 37%
1%1%
In distribution, despite market growth...In distribution, despite market growth...
Volume of Distributed Energy
(GWh)
+4.5%
+6.5%
23,948 25,029
+4.5%
+6.5%
Energy Distributed by Customer Class
(GWh)
23,94825,029
4Q06 4Q07 2006 2007 4Q06 4Q07 2006 2007
10
53%53%
53% 53%34%
13%
33%
14%
62%62%
62% 62%36%2%
36%1%
Energy in Transit
6,038 6,428
Bandeirante EnersulEscelsa End Customers Other
53%
6,0386,428
978 891
49%
48% 51%
31%31%
18%21%
20%31%
57%
7%36%
242
31
829679
54%
46% 61%
33% 37%
2%21%
29%
17%
... financial performance was negatively impacted by the ... financial performance was negatively impacted by the reduction in reduction in Enersul’sEnersul’s RABRAB
Net Revenue
(R$ MM)
3,5733,916
EBITDA
(R$ MM) -18.1%
-9.0% -87.1%
+9.6%
4Q06 4Q07 2006 2007
4Q06 4Q07 2006 20074Q06 4Q07 2006 2007
11
49%
54%
57% 54%
54%
16334
54%
15%
332292
42%
43%36%15%
49%
EnersulEscelsa
█ Reduction in 2007 EBITDA vs 2006 reflects a negative non-recurrent effect of R$ 183.1 MM with respect to the impact of the reduction inEnersul’s RAB
Net Income
(R$ MM)
-79.0%
-12.1%
Bandeirante
4Q06 4Q07 ∆% 2006 2007 ∆%
Personnel 65.9 70.2 6.4% 303.2 259.1 -14.5%
Material 7.9 10.5 32.4% 33.6 40.0 19.3%
Third Party Services 73.1 87.2 19.3% 265.2 311.2 17.3%
Provisions 14.6 24.0 64.4% 66.7 132.5 98.7%
Others 24.6 18.5 -24.9% 63.8 64.9 1.8%
Manageable Expenditures (R$ MM)
Manageable expenditures per MWh increased less than inflation Manageable expenditures per MWh increased less than inflation in the period, despite the increase in contingenciesin the period, despite the increase in contingencies
12
Others 24.6 18.5 -24.9% 63.8 64.9 1.8%
Total 186.1 210.3 13.0% 732.4 807.7 10.3%
Distr. energy vol. (GWh) 22,394 23,061 3.0% 23,948 25,029 4.5%
R$ / MWh 8.31 9.12 9.7% 30.58 32.27 5.5%
IGPM 7.8% 7.8%
+ R$ 11.5 MM in PDD at subsidiary companies
+ R$ 23.9 MM in civil, tax and labor contingencies recognized by the discos
Provisions and Others
+ R$ 14.3 MM in operating efficiency programs and support activities
+ R$ 9.9 MM in conservation and repair of discos’ networks
+ R$ 3.4 MM in expenditures with collections, meter reading, billing, disconnections and reconnections
Third Party Services
Productivity indicators show continuous improvementsProductivity indicators show continuous improvements
10.110.3
12.012.9
5.86.6
8.18.9
3.4 3.64.3 4.4
GWh / employee
13
1.06 1.07
1.29 1.40
0.89 0.941.06
0.961.15
0.80 0.760.71
Client / employee
2004 2005 2006 2007
Bandeirante EnersulEscelsa
Bandeirante EnersulEscelsa
6.05.65.45.3 8.08.27.87.6
4.44.44.24.0
Commercial Losses
2.52.42.3 2.3
SepJunMar Dec
Escelsa EnersulBandeirante EDB
Measures taken allowed losses to be kept under control, within Measures taken allowed losses to be kept under control, within existing limits existing limits
SepJunMar Dec SepJunMar Dec SepJunMar Dec
14
~ 745 thousand inspections undertaken and300 thousand frauds detected in 2007
~ R$32.5 in recovered revenues
Efficacy of investments aimed at combating losses is reflected primarily in avoidance of increased fraud
9.0% 9.1% 9.1%
4.4%
8.9%
4.2%4.1% 4.4%
Total Losses
SepJunMar Dec
13.0% 13.2% 13.5% 13.5%
2007
SepJunMar Dec2007
SepJunMar Dec
2007SepJunMar Dec
2007
SepJunMar Dec
2007
And in April, we conclude the second cycle of periodic tariff And in April, we conclude the second cycle of periodic tariff reviewreview
Verified Revenue
Parcel A
Parcel B
Model Company
Delinquency
Remuneration
Regulatory Depreciation
2nd Tariff Review Cycle ESCELSA
1,356,583
814,707
452,202
221,263
8,852
143,590
78,497
BANDEIRANTE
2,146,463
1,402,476
567,473
262,867
12,667
184,119
107,820
ENERSUL (preliminary)
925,262
512,844
379,984
183,254
7,571
117,407
71,752
15
Regulatory Depreciation
Total Required Revenue
(-) Other Revenue
Net Required Revenue
Tariff Review (excl. fin. adjust.)
Financial Adjustments 2007
Financial Adjustments 2006
Post Fin. Adjust Tariff Review
Gross RABNet RAB
-6.92%
1,266,908
4,177
1,262,730
78,497
1,842,657952,457
4.76%
-7.46%
-9.62%
107,820
1,969,950
12,443
1,957,506
-8.80%
-0.52%
-3.15%
-12.47%
2,354,1441,221,292
71,752
892,827
1,285
891,542
-3.64%
-12.29%
-3.00%
-18.93%
1,704,327778,778
CommercializationCommercialization
52
78
In commercialization, the growth of volume combined with the In commercialization, the growth of volume combined with the increase in margin...increase in margin...
8141,193
6,7027,188
Volume of Energy Commercialized
(GWh)
+7.2%
Number of Customers
+50%
17
2006 2007
1,669
5,5096,374
1,349
37222
4Q07 2006 2007
Energias do Brasil Group Companies
Other
4Q06
1,7061,571
+8.6%
Commercialization Margin
2007 vs 2006
25.7%
83
47
47
…resulted in growth of 37% in EBITDA, adjusted to exclude the …resulted in growth of 37% in EBITDA, adjusted to exclude the impact of provisions for Ampla’s receivables impact of provisions for Ampla’s receivables
118 153
495
618
Net Revenue
(R$ MM)
Adjusted EBITDA
(R$ MM)
+30.2%
+24.9%+ 37.2%
40
4312
59
40
8
3
11
+ 37.5%
18
4Q06 4Q07 2006 20074Q06 4Q07 2006 2007
7 9
34
4Q06 4Q07 2006 2007
Net Income
(R$ MM)
-18
-32
> 10x
3
40
-32
8
Energias do BrasilEnergias do Brasil
290156
1074 1123
+16.3%
1,085 1,076
3,9854,513
Reduction in Enersul’s RAB also had a significant impact on Reduction in Enersul’s RAB also had a significant impact on consolidated results…consolidated results…
Net Revenue
(R$ MM)
Adjusted EBITDA
(R$ MM)+13.3%
-0.8%-11.0%
1,1231,074
1.3401.152
290
384
342
20
4Q06 4Q07 2006 20074Q06 4Q07 2006 2007
15568
394440
4Q06 4Q07 2006 2007
Net Income
(R$ MM) +11.6%
-55.8%
290 156
█ The retroactive impact (2003-2007) of the reduction in Enersul’s RAB ofR$183.1MM, was fully recognized in4Q07 accounts
…offsetting the positive effect of the growth in the result for …offsetting the positive effect of the growth in the result for generationgeneration
EBITDA 2007 vs. 2006
(R$ MM)
1,0741,123
-183-143416943
21
2006
Comm
ercia
lizatio
n
Generatio
n
Distrib
ution
Others
Enersu
l RAB
2007
2007 2006
R$ R$ R$ %
1,123.0 1,073.6 49.4 4.6%
Elimination of non-recurring effects
Enersul’s RAB Reduction – retroactive impact (2003 - 2007) 183.1 - 183.1
Provision for receivables due from Ampla - Enertrade 12.0 40.2 (28.2)
Delinquency from collection agent - Bandeirante 11.7 - 11.7
RTE Write-off - Bandeirante 9.9 - 9.9
Reported EBITDA
Change
Bandeirante
Excluding nonExcluding non--recurring events, EBITDA posted growth of 16.3% recurring events, EBITDA posted growth of 16.3% in 2007 in 2007
22
RTE Write-off - Bandeirante 9.9 - 9.9
Redundancy program - 51.6 (51.6)
Recognition of R&D – regulated by Aneel (Apr/2006) - 18.4 (18.4)
Fiscal contingencies - Bandeirante (ICMS - Santos e Salto) - 7.9 (7.9)
Reversion of CVA - Enersul - 6,3 (6.3)
Sectorial contribution - FNDCT (Nat. Fund for Scientific and Tech. Development) - 4,5 (4.5)
Tariff readjustment – Impact from deverticalization (Aug/2006) - (34.4) 34.4
RAB revision - Bandeirante (Resol. 226 of October 18, 2005) - (16.0) 16.0
Adjusted EBITDA 1,339.7 1,152.1 187.6 16.3%
Discos’ debt restructuring was important in reducing financial Discos’ debt restructuring was important in reducing financial expenses by 22.5%...expenses by 22.5%...
Financial Result (R$ MM)
4Q06 4Q07 ∆ % 2006 2007 ∆ %
Financial Income 117.3 41.1 -65.0% 321.0 234.3 -27.0%
Financial Expenses (313.9) (215.7) -31.3% (639.3) (495.6) -22.5%
Net Forex Result (14.5) (12.4) -14.2% (59.5) (42.4) -28.8%
Swap - net result (21.6) (15.5) -28.4% (110.7) (110.4) -0.3%
23
Swap - net result (21.6) (15.5) -28.4% (110.7) (110.4) -0.3%
Foreign Exchange Rate Variation 7.1 3.0 -57.2% 51.2 68.0 32.7%
TOTAL (211.1) (187.0) -11.4% (377.8) (303.7) -19.6%
█ Other factors contributing to improvement in the financial result were
– Lower monetary restatement due to reduction in regulatory asset outstanding; and
– Lower expenses with interest on shareholders’ equity.
689.2
539.1 524.8 504.1
906.2
321.4
1,9571,8791,702
2,345
1.71.8
3.0
1.9
0
1,000
2,000
012345
Net debt/EBITDA
200620052004 2007
Net DebtNet Debt/EBITDA
Debt Maturity Schedule
Cash and Cash Equiv.
2008 2009 20112010 Após 2011
Extended debt maturity, which, together with low levels of Extended debt maturity, which, together with low levels of leverage, provides us with a higher investment capacity…leverage, provides us with a higher investment capacity…
24
1,957
Long Term
2,474 1,879
Short-Term
321 (689)
(149)
Gross DebtDec/07
(-) Cash andMarketable
Securities
(-) RegulatoryAsset andLiabilities
Net DebtDec/07
Net DebtDec/06
2,796
Gross Debt Breakdown
(Dec/07)
Net Debt
(R$ MM)
55%55%38%38%
6%1%
Dollar
Fixed Rates
Long Term Basci Interest Rate
Floating Rates
*** Includes Selic, CDI, IGP-M and INPC
Net DebtNet Debt/EBITDA Cash Equiv.(Dec/07)
2011
Capex Breakdown*
(R$ MM)
217106
585581595
1,023
159 157
Investments – Universalization
(R$ MM)
A substantial increase in CAPEX is envisaged for 2008, largely A substantial increase in CAPEX is envisaged for 2008, largely allocated to generation projects allocated to generation projects
25
378475
217
438
(*) Does not include Capex for Universalization Program
2008E20072006
DistributionGeneration
81
2006 2007 2008E
Historical PerformanceHistorical Performance
775913
1,074 1123
EBITDA
(R$ MM)
Adjusted CAGR +20.0%
4%
EBITDA Breakdown
15%
38%
1,340
From 2004 to 2007, Energias do Brasil delivered an average annual EBITDA From 2004 to 2007, Energias do Brasil delivered an average annual EBITDA growth of 20.0% and achieved a better balance in its asset portfolio by growth of 20.0% and achieved a better balance in its asset portfolio by growing in the generation segmentgrowing in the generation segment
5% 5%
27
775
2004 2005 2006 2007
58%
2004 2007
DistributionGeneration Commercial.
1,123
440
90%
Energias do Brasil is today a company that has made important Energias do Brasil is today a company that has made important achievements ...achievements ...
Today we are...
█ One of the largest listed companies in the electricity sector
█ A company focused on high standards of governance and sustainability
█ The 3rd largest commercialization company
.. with important achievements since the IPO
Healthy growth of the business (+45%, EBITDA since 2004)
Doubling of capacity with better balanced asset portfolio (generation increasing from 5% of EBITDA in 2004 to 30% currently)
28
█ The 3rd largest commercialization company
█ One of the leading discos with about a 3-million-customer base
█ A company well placed to leverage market opportunities
– Experience and know-how along the entire value chain
– Financial capacity
– Parent company has an expanding international presence
Creation of the Shared Services Center platform and a reduction of 600 in the number os employees
Continuous productivity improvements in distribution (MWh/employee and customers/employee increased 25% and 27% respetively between 2004 and 2007)
Sharp increase in the commercialization business (+48% in volumes since 2004)
GrouthGrouth OpportunitiesOpportunities
Capacity (MW)Main projects in our portfolio
I. We currently have a portfolio of thermoelectric projects with a total I. We currently have a portfolio of thermoelectric projects with a total capacity of 2,080 MWcapacity of 2,080 MW
█ Joint venture partnership in the Pecem (720 MW) TPP with MPX (50% stake), and an eventual participation in a further 360MW of capacity
360720 1.080
30
500
500
█ Acquisition of the Resende (Rio de Janeiro) gas-fired TPP with 500 MW of capacity
█ Development of a proprietary project for a gas-fired TPP in the north of the state of Espírito Santo with 500 MW of capacity
Capacity (MW)Main projects in our portfolio
I. In addition, the hydroelectric project portfolio amounts to a I. In addition, the hydroelectric project portfolio amounts to a capacity of more than 1,400 MWcapacity of more than 1,400 MW
█ Partnership agreement with Cemig for developing feasibiility studies for HPPs with a total capacity of 1,034 MW (360 MW with Cemig and 674 MW with Cemig, Concremat and AG)
1.034
31
█ Partnership agreement with Engevix for developing feasibility studies for HPPs with a total capacity of 170 MW
█ Partnership agreement with Eletronorte for developing feasibility studies for HPPs with a total capcity of 235 MW
235
170
Capacity (MW) Main projects in our portfolio
II. We currently have renewable generation projects in portfolio II. We currently have renewable generation projects in portfolio in excess of the ~ 1,000 MW targetin excess of the ~ 1,000 MW target
█ 24 SHP projects totaling 538 MW of capacity
– 8 already filed with the regulator for licensing
– 8 to be filed for licensing by July
– 5 to be filed in the second half of 2008
– 3 to be filed in the first half of 2009
538
32
█ Partnership agreement with Cemig for developing 500 MW in wind farm capacity in the state of Minas Gerais
█ Biomass projects under analysis, with a total capacity of 350 MW
500
350
March 2008
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