Conference Call2Q07 Earnings Results

July 25, 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

Market recovery in Enersul’s concession area (+6.4%) and stronggrowth in Escelsa’s region (+6.9%)

Growth in the volume of energy in transit (4.0%)

3,218 3,328

1,991 2,128

763 8125,972 6,268

2Q06 2Q07

Bandeirante Escelsa Enersul

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

62% 62%

37% 37%1% 1%5,972 6,268

2Q06 2Q07

End Customers Energy in Transit Other

5.0% 5.0%

5

8.5% 9.0% 8.9% 9.0%

4.1% 3.8% 4.0% 4.2%

12.6% 12.8% 12.9% 13.2%

Jun/05 Jun/06 Dec/06 Jun/07

Technical Commercial

DistributionProgram for Curbing Losses

In 2Q07, R$28 million were invested in programs to cut down losses.

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

~ 167 thousand inspections were made in 2T07

~ 72 thousand frauds identified

~ 700 thousand inspections scheduled for 2007

Installation of protected networks and telemetric monitoring

2.3 2.4

Jun/06 Jun/07Jun/05

2.2 2.2

Dec/06

5.0 5.4

Jun/06 Jun/07

6.0

Jun/05

5.4

Dec/06

6.67.6

Jun/06 Dec/06

5.9

Jun/05

7.8

Jun/07

6

Project Vanguarda

Productivity (client/employee)

456 502 462

776654

585

1,071

890762

1,287

1,060943 923

1,236

1,057

Bandeirante Escelsa Enersul

1998 2001 2005 2006 2Q07

171%

111%100%

Savings resulting from the Redundancy Program implemented in 2Q06:

• R$ 8.0 million in 2Q07 vs. 2Q06

• R$ 44.4 million in accumulated annualized savings since the implementation of the program

24.835.6

60.04.0

5.2

8.4

27.738.8

4.2

5.628.8 31.9

40.8 44.4

68.4

D ec/ 0 6 A ccomp lished

t il l D ec/ 0 6

Jun/ 0 7 A cco mp lished t i l

Jun/ 2 0 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)

7

Generation

Growth in the volume of energysold

• Beginning of energy contracts for Mascarenhas4th engine and PCH SãoJoão

766

941

2Q06 2Q07

Volume of Energy Produced (GWh)

516

1,043452 50 25

Installed Capacity (MW)

PeixeAngical

4th Eng. Masc.

PCHS. João Current

2005

22.9%

1,1771,303

2T06 2T07

Volume of Energy Sold (GWh)

10.7%

8

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)

PCHs projects and studies to be presented to ANEEL: +438 MW

Feasibility studies for 7 hydro power plants: +590 MW (235 MW in

partnership with Eletronorte)

Partnership with MPX Mining & Energy to build coal-fired thermal

plants:+ 525 MW (50% stake in each project)

– UTE Maranhão: +350 MW

– UTE Pecém: +700MW

Generation - Creating Growth Opportunities

9

Commercialization

Growth of volume sold to freecustomers (+13.7%) offset theend of Enerpeixe’s contract

1,400 1,569

446346

1,846 1,915

2Q06 2Q07Other ENBR Group companies

Volume of Energy Distributed (GWh)

63 64

2Q06 2Q07

Number of customers

1.6%

3.8%

Financial Performance

11

909

1,157

76%77%

11%

10%13%

13%

2Q06 2Q07Distribution Generation Commercialization

26

113

2Q06 2Q07

163

312

64%61%

31%

31%

5%

6%

2Q06 2Q07

Distribution Generation Commercialization

Financial Performance

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

Net Income (R$ MM)

27.3% 91.6%

333.0%

12

Manageable Expenses

R$ million 2007 2006 ∆

Personnel 86.1 126.6 -40.5 -32.0%

Material 10.0 11.8 -1.8 -15.0%

Third Party Services 84.7 68.7 16.0 23.2%

Provisions 42.1 15.4 26.6 172.3%

Other 22.6 20.2 2.4 12.1%

Total 245.4 242.7 2.7 1.1%

∆ %

2nd

Quarter

Costs and Expenses

Manageable costs were impacted by non-recurring charges

Costs and ExpensesBreakdown* - 2Q07

Breakdown of Manageable Expenses

R$ 845.7 R$ 845.7 millionmillion

Non-manageable

costs

R$ 600.3 million

(71%)

Manageable

costs

R$ 245.4 million

(29%)

Manageable

costs

R$ 245.4 million

(29%)

Note:

*Depreciation and amortization were excluded

Provisions:

+ R$ 11.7 MM in provisions for non-transfer of revenues by collection agent

+ R$ 6.7 MM in civil and labor contingencies

+ R$ 3.0 MM in receivables due from Ampla

13

Financial Result

R$ million 2Q07 2Q06 Var.%

Financial Revenue 56.8 67.6 -16%

Financial Expense (89.6) (97.8) -8%

Net Foreign Exchange Result (8.7) (16.9) -49%

Net result from SWAP operations (38.3) (18.7) 105%

FX gain (loss) 29.6 1.8 1525%

TOTAL (41.5) (47.0) -12%

Reduction in debt servicing due to the fall of basic interest rates

Financial Result

14

Investments and Indebtedness

Total Debt Index(Mar/07)

** Includes Selic, CDI, IGP-M and INPC

Indebtedness – 2Q07 (R$ Million)Net Debt evolution

* Ratio: Net Debt / EBITDA 12 months

1.6x1.6x**

1.5x1.5x**

Net Debt / Ebitda

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

Distribution Generation2007 (E) 1H07 (A)

192

466

173

19

658

192

Universalization Program R$MM (includes LPT **)

2007 (E) 1H07 (A)

105

26

* Does not include interest capitalization and/or new projects **LPT: Luz para Todos

34%

59%

2% 5%

US$ Fixed Rates

TJLP Floating Rates **

* includes R$ 5.5 million of deposits related to debt with BNDES

1,889

Long-Term

2,2861,850

Short-Term

726(698)

(425)

Gross Debt Jun.07 (-) Cash and

Marktable Securities *

(-) Regulatory Asset

and Liabilities

Net Debt Jun.07 Net Debt Mar.07

3,012

15

IndebtednessExtended Maturity

697.6

582.5

307.4

528.5 511.8 490.8

178.5 157.5 124.0 130.7

Cash and

marketable

securities

2007 2008 2009 2010 2011 2012 2013 2014 After 2014

DebtDebt MaturityMaturity Schedule Schedule –– Jun/07Jun/07 vsvs Jul/07Jul/07 (R$ (R$ millionmillion))**

Debentures Issued in Jul/07Debentures Issued in Jul/07–– EscelsaEscelsa: :

R$250R$250 MMMM

Tenor:Tenor: 7 7 yearsyears

Grace Grace periodperiod ((interestinterest andand principal): 5 principal): 5 yearsyears

Remuneration: 105% of CDIRemuneration: 105% of CDI

ReductionReduction of short of short termterm debtdebt

ExtensionExtension of of averageaverage maturitymaturity

ReductionReduction of of averageaverage costcost of debtof debt

* Debentures issued on July 02, 2007

220.4

307.4

528.5 511.8 490.8

261.8 240.9207.4

130.7

2007 2008 2009 2010 2011 2012 2013 2014 After

2014

Debt Maturity Schedule (R$ MM)

June/07 After debenture issuance and repayment of Senior Notes

16

Stock Performance

+33%

+27%

+19%

+18%

VolumeR$ Th.

Updated until June 29, 2007

Market Capitalization: R$6.5 billion

95

100

105

110

115

120

125

130

135

140

4/2/2007 4/24/2007 5/16/2007 6/6/2007 6/28/2007

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Volume R$ ENBR3 ENBR3 Ibovespa IEE IBX

ENBR3 x Indexes Performance

Base: 04/02/2007

April: R$ 7,178

May: R$ 15,403

June: R$ 13,495

Average daily traded volume (R$ th.)

2Q07: R$ 12,134

Conference Call

2Q07 Results

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