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.
2
4. Highlights of 2007
█ 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
█ 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
4
6. Generation’s performance was outstanding in 2007, driven by
the increase in capacity...
Volume of Produced Energy Volume Energy Sales
(GWh) (GWh)
+17.0%
+19.7%
4,704 5,568
3,929 4,758
-9.3%
+8.4%
N.A. 1,355 N.A. 1,480
4Q06 4Q07 2006 2007 4Q06 4Q07 2006 2007
█ 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
6
7. …which resulted in strong EBITDA growth
Net Revenue EBITDA
(R$ MM) (R$ MM)
+28.3%
+62.1%
583 442
454
+26.5% +47.4% 273
170 130
134 88
4Q06 4Q07 2006 2007 4Q06 4Q07 2006 2007
Net Income
(R$ MM)
+60.7%
206
128 █ EBITDA margin from generation
+72.5%
increases to 75.8% in 2007 from
63 60.1% in 2006
36
4Q06 4Q07 2006 2007
7
8. Installed capacity has almost doubled since 2005 and with
projects already underway, will almost triple in 2012
Installed capacity
(MW)
+39.2%
1,452
+102.1%
360
409
29 20*
50 25
452
2009 2009 2012
1,043 Estimated start-up of
commercial operation
1,043
516
2005 UHE Peixe 4a Máq. PCH São Atual PCH Santa UTE Pecém 2012
Angical Mascarenhas João Fé Repotenciações
Assured Energy
(average MW)
334 645 980
93.1% 51.9%
Projects concluded since IPO
Projects in progress
* Includes 2.3 MW from the upgrading of Suíça HPP, still awaiting Aneel ratification
8
10. In distribution, despite market growth...
Volume of Distributed Energy Energy Distributed by Customer Class
(GWh) (GWh)
+4.5%
+4.5%
23,948 25,029
25,029
23,948
1%
1%
13%
13%
+6.5% +6.5%
37% 37%
34% 34%
6,428 6,428
6,038 6,038
14% 13% 2%
1% 62% 62%
53% 53% 36% 36%
33% 34%
53% 53% 62% 62%
53%
4Q06 4Q07 2006 2007 4Q06 4Q07 2006 2007
Bandeirante Escelsa Enersul End Customers Energy in Transit Other
10
11. ... financial performance was negatively impacted by the
reduction in Enersul’s RAB
Net Revenue EBITDA
(R$ MM) +9.6%
(R$ MM) -18.1%
3,916 829
3,573 679
18% 21%
-9.0% 21% -87.1% 2%
31% 37%
31% 242 33%
978 891
17% 31
20% 7%
31% 36% 29% 46% 61%
48% 51%
49% 57% 54%
4Q06 54% 4Q07 2006 2007 4Q0654% 4Q07 2006 2007
Net Income
(R$ MM) -12.1%
332
292
-79.0% 15%
163 42%
15% 34 █ Reduction in 2007 EBITDA vs 2006
36%
43%
reflects a negative non-recurrent
49%
effect of R$ 183.1 MM with respect
4Q06 4Q07 2006 2007 to the impact of the reduction in
54% Enersul’s RAB
Bandeirante Escelsa Enersul
11
12. Manageable expenditures per MWh increased less than inflation
in the period, despite the increase in contingencies
Manageable Expenditures (R$ MM)
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%
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%
Provisions and Others Third Party Services
+ R$ 11.5 MM in PDD at subsidiary companies + R$ 14.3 MM in operating efficiency programs and
support activities
+ R$ 23.9 MM in civil, tax and labor contingencies
recognized by the discos + 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
12
14. Measures taken allowed losses to be kept under control, within
existing limits
Commercial Losses
Bandeirante Escelsa Enersul EDB
2.4 2.5 2.3 5.3 5.6 6.0 7.8 8.2 8.0
2.3 5.4 7.6
4.0 4.2 4.4 4.4
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
2007 2007 2007 2007
Total Losses
~ 745 thousand inspections undertaken and
13.2% 13.5% 13.5%
13.0% 300 thousand frauds detected in 2007
4.1% 4.2% 4.4% 4.4%
~ R$32.5 in recovered revenues
Efficacy of investments aimed at
8.9% 9.0% 9.1% 9.1%
combating losses is reflected primarily
in avoidance of increased fraud
Mar Jun Sep Dec
2007
14
15. And in April, we conclude the second cycle of periodic tariff
review
ENERSUL
2nd Tariff Review Cycle ESCELSA BANDEIRANTE
(preliminary)
Verified Revenue 1,356,583 2,146,463 925,262
Parcel A 814,707 1,402,476 512,844
Parcel B 452,202 567,473 379,984
Model Company 221,263 262,867 183,254
Delinquency 8,852 12,667 7,571
Remuneration 143,590 184,119 117,407
Regulatory Depreciation 78,497 107,820 71,752
Total Required Revenue 1,266,908 1,969,950 892,827
(-) Other Revenue 4,177 12,443 1,285
Net Required Revenue 1,262,730 1,957,506 891,542
Tariff Review (excl. fin. adjust.) -6.92% -8.80% -3.64%
Financial Adjustments 2007 4.76% -0.52% -12.29%
Financial Adjustments 2006 -7.46% -3.15% -3.00%
Post Fin. Adjust Tariff Review -9.62% -12.47% -18.93%
Gross RAB 1,842,657 2,354,144 1,704,327
Net RAB 952,457 1,221,292 778,778
15
17. In commercialization, the growth of volume combined with the
increase in margin...
Volume of Energy Commercialized Number of Customers
(GWh)
+50% 78
+7.2%
52
7,188
6,702
814
1,193
+8.6%
2006 2007
6,374
1,706 5,509
1,571
222 37 Commercialization Margin
1,349 1,669 2007 vs 2006
4Q06 4Q07 2006 2007
Energias do Brasil Group Companies
Other
25.7%
17
18. …resulted in growth of 37% in EBITDA, adjusted to exclude the
impact of provisions for Ampla’s receivables
Net Revenue Adjusted EBITDA
(R$ MM) (R$ MM)
+24.9%
+ 37.2% 59
618 47
+ 37.5% 12
495 43
+30.2%
8 11 47
8 40
3
153 3
118
40
8 3
-32
-32
4Q06 4Q07 2006 2007 4Q06 4Q07 2006 2007
Net Income
(R$ MM)
> 10x
34
7 9
-18
4Q06 4Q07 2006 2007
18
20. Reduction in Enersul’s RAB also had a significant impact on
consolidated results…
Net Revenue Adjusted EBITDA
(R$ MM) (R$ MM) +16.3%
+13.3% 1.340
1.152
4,513 1074 1123
3,985
-11.0%
-0.8%
1,074 1,123
384
342
1,085 1,076 290
156
290 156
4Q06 4Q07 2006 2007 4Q06 4Q07 2006 2007
Net Income
(R$ MM) +11.6%
440
394
-55.8%
█ The retroactive impact (2003-2007)
155 of the reduction in Enersul’s RAB of
68 R$183.1MM, was fully recognized in
4Q07 accounts
4Q06 4Q07 2006 2007
20
21. …offsetting the positive effect of the growth in the result for
generation
EBITDA 2007 vs. 2006
(R$ MM)
169 34 -14 -183
43 1,123
1,074
B
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21
22. Excluding non-recurring events, EBITDA posted growth of 16.3%
non-
in 2007
2007 2006 Change
R$ R$ R$ %
Reported EBITDA 1,123.0 1,073.6 49.4 4.6%
Elimination of non-recurring effects Bandeirante
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
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%
22
23. Discos’ debt restructuring was important in reducing financial
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%
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.
23
24. Extended debt maturity, which, together with low levels of
leverage, provides us with a higher investment capacity…
Net debt/EBITDA Debt Maturity Schedule
906.2
2,345 5
1,879 1,957 689.2
2,000 3.0 1,702 4
539.1 524.8
3 504.1
1,000 2 321.4
1.9 1.8 1.7 1
0 0
2004 2005 2006 2007
Cash and 2008 2009 2010 2011 Após
Net Debt/EBITDA Net Debt Cash Equiv. 2011
(Dec/07)
Net Debt Gross Debt Breakdown
(R$ MM) (Dec/07)
2,796
1% 6%
Short-Term Floating Rates
321 (689)
(149)
Long Term Basci
Long Term Interest Rate
2,474 38%
1,957 1,879 55% Dollar
Fixed Rates
Gross Debt (-) Cash and (-) Regulatory Net Debt Net Debt
Dec/07 Marketable Asset and Dec/07 Dec/06
Securities Liabilities *** Includes Selic, CDI, IGP-M and INPC
24
25. A substantial increase in CAPEX is envisaged for 2008, largely
allocated to generation projects
Capex Breakdown* Investments – Universalization
(R$ MM) 1,023 (R$ MM)
585
595 581
106 159 157
217
81
475 438
378
2006 2007 2008E
2006 2007 2008E
Generation Distribution
(*) Does not include Capex for Universalization Program
25
27. 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
growing in the generation segment
EBITDA EBITDA Breakdown
(R$ MM)
Adjusted CAGR 1,340 4%
+20.0% 5% 5%
1,074 1123 15%
913 38%
775
58%
1,123 90%
2004 2007
Generation Distribution Commercial.
2004 2005 2006 2007
440
27
28. Energias do Brasil is today a company that has made important
achievements ...
Today we are... .. with important achievements since the IPO
█ One of the largest listed companies in the
electricity sector Healthy growth of the business (+45%,
EBITDA since 2004)
Doubling of capacity with better
█ A company focused on high standards of
balanced asset portfolio (generation
governance and sustainability
increasing from 5% of EBITDA in 2004 to
30% currently)
█ The 3rd largest commercialization company
Creation of the Shared Services Center
█ One of the leading discos with about a 3- platform and a reduction of 600 in the
million-customer base number os employees
Continuous productivity improvements in
█ A company well placed to leverage market distribution (MWh/employee and
opportunities customers/employee increased 25% and
27% respetively between 2004 and 2007)
– Experience and know-how along the entire
value chain Sharp increase in the commercialization
– Financial capacity business (+48% in volumes since 2004)
– Parent company has an expanding
international presence
28
30. I. We currently have a portfolio of thermoelectric projects with a total
capacity of 2,080 MW
Main projects in our portfolio Capacity (MW)
█ Joint venture partnership in the Pecem
(720 MW) TPP with MPX (50% stake), and
720 360 1.080
an eventual participation in a further
360MW of capacity
█ Acquisition of the Resende (Rio de
Janeiro) gas-fired TPP with 500 MW of
500
capacity
█ Development of a proprietary project for
a gas-fired TPP in the north of the state of 500
Espírito Santo with 500 MW of capacity
30
31. I. In addition, the hydroelectric project portfolio amounts to a
capacity of more than 1,400 MW
Main projects in our portfolio Capacity (MW)
█ Partnership agreement with Cemig for
developing feasibiility studies for HPPs with
a total capacity of 1,034 MW (360 MW 1.034
with Cemig and 674 MW with Cemig,
Concremat and AG)
█ Partnership agreement with Eletronorte for
developing feasibility studies for HPPs with 235
a total capcity of 235 MW
█ Partnership agreement with Engevix for
developing feasibility studies for HPPs 170
with a total capacity of 170 MW
31
32. II. We currently have renewable generation projects in portfolio
in excess of the ~ 1,000 MW target
Main projects in our portfolio Capacity (MW)
█ 24 SHP projects totaling 538 MW of capacity
– 8 already filed with the regulator for licensing
– 8 to be filed for licensing by July 538
– 5 to be filed in the second half of 2008
– 3 to be filed in the first half of 2009
█ Partnership agreement with Cemig for developing 500 500
MW in wind farm capacity in the state of Minas Gerais
█ Biomass projects under analysis, with a total capacity of
350 MW
350
32
