Conference Call1Q07 Earnings Results

May 02, 2007

António Martins da CostaChief Executive Officer

Antonio José SellareChief Financial Officer

Flavia HellerInvestor Relations Officer

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.

Operating Performance

4

Distribution

Growth in volume of energy distributed: market recovery in Enersul’s concession area

Increase in the share of free clients in total volume distributed

3,136 3,214

2,037 2,105

793 8235,966 6,143

1Q06 1Q07

Bandeirante Escelsa Enersul

Volume of Energy Distributed (GWh) Energy Distributed by Customer Class (% of total volume distributed)

3.0%

64% 62%

35% 37%1% 1%

1Q06 1Q07

End Customers Energy in Transit Other

3.0%

5,966 6,143

5

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

DistributionProgram for Curbing Losses

In 1Q07, R$10 million were invested in programs to cut down technicaland commercial losses.

Evolution of commercial losses (% of distributed energy - last 12 months)

~ 167 thousand inspections were made in 1T07

~ 72 thousand frauds identified

~ 700 thousand inspections are scheduled for 2007

2.4 2.3

Mar/06 Mar/07Jun/05

2.2 2.2

Dec/06

5.2 5.4

Mar/06 Mar/07

6.0

Jun/05

5.4

Dec/06

6.37.6

Mar/06 Dec/06

5.9

Jun/05

7.6

Mar/07

6

Vanguard Project

Productivity (client/employee)

24.835.2 35.6

60.04.0

5.2 5.2

8.4

27.737.9

4.2

5.728.8 31.9

40.4 43.6 40.8

68.4

D ec/ 0 6 A cco mp lished

t i l l D ec/ 0 6

M ar/ 0 7 A cco mp lished

t i l l M ar/ 0 7

Jun/ 0 7 D ec/ 0 7

Indirect (Accomplished)

Direct (Accomplished)

Indirect(Estimated)

Direct (Estimated)

PDV – Capture of accumulated annualized savingsCost of Personnel (R$MM/year)

456 502 462

776654

585

1,071

890762

1,287

1,060943 929

1,223

1,044

Bandeirante Escelsa Enersul

1998 2001 2005 2006 1Q07

IT Project

2005 2006 2007 2008

ScheduleSchedule

SIT-Brasil

Integração

168% 108% 101%

7

Generation

Peixe Angical and Mascarenhas’ 4th Engine:

– Full capacity in 1Q07

PCH São João:

– Energy contract started in Jan/07

– Commercial operation authorized in Apr/07

720

1,469

1Q06 1Q07

UHE Peixe UHE Peixe AngicalAngical

UHE UHE MascarenhasMascarenhas

Volume of Energy Produced (GWh)

516

1,043452 50 25

Installed Capacity (MW)

PeixeAngical

4th Eng.Masc.

PCHS. João Current

2005

104%

PCH PCH São JoãoSão João

8

PCHs under construction: +29 MW (Santa Fé)

Power upgrades: +51 MW (under study)

18 PCHs projects to be presented to ANEEL: +438 MW

Feasibility studies for 7 hydro power plants: +590 MW (225

MW in partnership with Eletronorte)

Authorization to build coal-fired thermal plant: +350 MW

(UTE Maranhão)

Coal and biomass thermal plants: preliminary studies

Participation in energy auctions

Acquisition of existing assets

Generation – Growth Opportunities

Own initiatives

9

Commercialization

Growth of volume sold to free customersoffset reduction of self-dealing and end ofcontract with Enerpeixe

Contract renewal: opportunity to increase customer base

1,354 1,462

303 235

1,657 1,697

1Q06 1Q07

Other ENBR Group companies

Volume of Energy Distributed (GWh)

54

73

1Q06 1Q07

Number of customers

2.4%

35.2%

Financial Performance

11

986

1,114

82% 79%

7% 11%11%10%

1Q06 1Q07

Distribution Generation Commercialization

99

128

1Q06 1Q07

282

339

71%78%

27%

16%

2%

6%

1Q06 1Q07

Distribution Generation Commercialization

Financial Performance

Net Revenues (R$ MM) EBITDA (R$ MM)

Net Income (R$ MM)

13.0% 20.2%

28.9%

12

EBITDA Margin

28.6%

EBITDA (R$ MM)

EBITDA 1Q06 x 1Q07 (R$ MM)

1Q06 Distribution Genera-tion

Commer-cialization

Contingen-cies Bad Debt PMSO Other 1Q07Tariff *

282+19

+63 +18 -10-5-7 -23

+2 339

* Enersul’s tariff readjustment and change in Bandeirante RAB

EBITDA Margin

30.4%

13

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

costs

R$ 549 million

(71%)

Manageable

costs

R$ 226 million

(29%)

Manageable

costs

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

14

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

* Ratio: Net Debt / EBITDA 12 months

1.8x1.8x**

1.6x1.6x**

Net Debt / Ebitda

Investments* – does not include LFA** (R$ MM)

Distribution Generation

2007 (E) 1Q07 (A)

192

466

5422

658

76

Universalization Program R$MM (includes LFA **)

2007 (E) 1Q07 (A)

105

16

* Does not include interest capitalization and/or new projects **LFA: Light for all

**

15

90

100

110

120

130

140

150

160

170

180

190

7/12/2005 8/30/2005 10/20/2005 12/12/2005 2/1/2006 3/24/2006 5/17/2006 7/6/2006 8/24/2006 10/16/2006 12/7/2006 1/31/2007 3/23/2007

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Volume R$ ENBR3 ENBR3 Ibovespa IEE IBX

Reconhecimento

+68%

+81%

+79%

+88%

VolumeR$ Th.

2005 Best Listed Company

HonorableMention

Ranked #1st Listed Company

Finalist Member in2006

Updated until March 31, 2007

Market Capitalization: R$5.0 billion

Conference Call

1Q07 Earnings Results

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