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                                             Captive Consumers                                                                               2
                                                                                        %                 3   4            15            6

                                             Free Clients
                                                                                   7%                     1                4 3
                                                                                                                            5            64
 80.3%                    18.5%
                                                                                   * ++ 8
                                                                                    "                         51           1 5           6

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                                 1.2%        Potentially Free Clients*
                                                                                   !!;
                                                                                   9                          4            1 1           6

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                                  .   0



                                                                                                                                         10,250
                                                                                                                                10,064
                     2Q07                   2Q08                                                                   8,351
                                                                                                          8,186




             3,605
     3,367                           1
                                                   2,540    2,510          1
                                                                                            1,878 1,899
                               1,634 1,608
                                                                     645     628


     Residential               Industrial              Commercial   Public Sector       Free Clients      Captive Market        Total Market
 -. / $ )
 G ! $9              ,E       ! $9- ;
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                                                                      12.9
                                                                                    12.0
                                                                                                 11.5        11.4       11.7
 99.0       99.1          99.5
                                       97.1           98.1
                                                                      6.4           5.5                                     5.2
                                                                                                 5.0         4.9



                                                                      6.5           6.5          6.5         6.5            6.5



 2005       2006          2007         1Q08           2Q08            2005          2006     2007            1Q08       2Q08
                                                                             Technical Losses*          Commercial Losses
 * 8"
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                                                                           Self-Financed

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                       1H07           1H08                2Q07           2Q08

                            Net Revenue           Deduction of Gross Revenue


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       1H07                 1H08               2Q07            2Q08          1H07               1H08              2Q07              2Q08

               PMSO and Other        Energy Purchase    Transport                     PMSO and Other     Energy Purchase     Transport




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                                               34




   1H07              1H08             2Q07           2Q08             1H07              1H08             2Q07              2Q08

                        EBITDA      Adjustments                                     EBITDA Without Non-recurring Effects

                         Adjusted EBITDA Margin                                  EBITDA Margin Without Non-recurring Effects



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                              83.0
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                                                                                    12.4

                                                           (0.8)
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    1H07           1H08       2Q07        2Q08             1H07        1H08         2Q07        2Q08


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                  347.5        339.5                               347.5
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    1H07          1H08         2Q07        2Q08       1H07         1H08           2Q07       2Q08




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                                     123.3%




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                                                                                                                Libor 0.7%
     105.3%




                                                                                                    CDI/Selic
                                                                                                     33.0%


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Apre 2 t08

  • 2.
    !# " "$ &' ( * % ! ) + , -* + ) . / (* + ) , -* + ) . / "0 " ( -* ) + . ) " "0 2 4 13 ( ! !5 ) " %6 % 7 81 ! $9 /$ :" ; ( ( "# "< (5 $ 0 ( ( 8 1, ( $< ( !# " (= ) ;> 1 ? " @A B -* C C ) C . ( 4 ( ; "" " " 0 (* + ) ; D )* E F )* E ( " F 2
  • 3.
    B - . !; ( ( !" # ! $ " "% $$ & ' ) ( Captive Consumers 2 % 3 4 15 6 Free Clients 7% 1 4 3 5 64 80.3% 18.5% * ++ 8 " 51 1 5 6 9 3 : : 6 4 1.2% Potentially Free Clients* !!; 9 4 1 1 6 *" +, " " " - ) /0 . 0 10,250 10,064 2Q07 2Q08 8,351 8,186 3,605 3,367 1 2,540 2,510 1 1,878 1,899 1,634 1,608 645 628 Residential Industrial Commercial Public Sector Free Clients Captive Market Total Market -. / $ ) G ! $9 ,E ! $9- ; /$ B 2 . And Others -G B G. " " 3
  • 4.
    9, * 8" " - " ." / ;" %8" - / 6 4 , ?4 , 3 , , 12.9 12.0 11.5 11.4 11.7 99.0 99.1 99.5 97.1 98.1 6.4 5.5 5.2 5.0 4.9 6.5 6.5 6.5 6.5 6.5 2005 2006 2007 1Q08 2Q08 2005 2006 2007 1Q08 2Q08 Technical Losses* Commercial Losses * 8" " - / 40 2 H , + = % %7 *" 8" - / 4; 2 H+ C " ( "" " * % 8" 8" # " & :" - < / B H' ( , C ) H' ( * 8" , , %% " " " " "" $, " "$ >8 "+ 8 & + -. GB 9 " ;1 ( 4
  • 5.
    7 + ' 4+ " ' 3+ " Customer Service and 10% 5% 8% System Expansion B 2 ; "21 $< H Maintenance )* 12% Self-Financed I / B B H* C ) 45% Information Technology 20% Loss Recovery Others I $< ( H* ) , 7 + -' "/ I ) H * ,+ ) : 14 4 3: 3 53 = H * ,C ) 4 31 3 4 15 I " CF 1 ( " 34 : 3 43 1 4 3 3 5 9 ) ; 1) H* : : &( 1) , H* 2005 2006 2007 2008 (e) 1H08 Capex Self Financed 5
  • 6.
    ! $ " $ " ! $ " $ " 3 B (9 7 7 * =C : 1 B : B D : 7B . 5 55 15 1 43 : 3 4 3 1 643 6 6: 61 6 6 : 30 4 : 1 6 4 ! $ % $ A + 9 @ & 8 8 " %" ", " $ % $ A + "$ "8 %A + $ " ! $$ I J? "( , I K ; 0 $< H! "( ( ); C I ) 1' ) H ! "( , , -. G? ; ( "" 6
  • 7.
    ." - '+ "/ 3 : 45 :: : 33 5 4 43 3: 51 1 3 5 45 5 33 5 34 5 5 31 44 1 1 4 1 4 1H07 1H08 2Q07 2Q08 Net Revenue Deduction of Gross Revenue ! E ! ! $ $ "6 4 $ 3 " 8 1, 1 "01 ( F % 8 " " 31 " F % 8 " " . " $ $ 1 ( " BB B " "# L ( 6, 8 1, -. G' "" 7
  • 8.
    9, E, 0- '+ "/ ) " C 6 " 8 $8 $ 5 : 3 45 4: 3 :5 35 3 4: 35 3 5 4 3 35 4 :4 1 3 3 4 3 3 : 4 : 4 3 33 54 54 : 3 :1 : 4 :1 3 1: 4 5 1 5 1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08 PMSO and Other Energy Purchase Transport PMSO and Other Energy Purchase Transport E C 6 " 8 $8 - $ / &B 8 (* ) &B 8 ( 42B ( -$ &E !2 M. ( ( () C . -* ! + " * (* , ) 9 E, ); ( 8" 9 E, " (* ) ' H *C + ) -. A G/ " @A 8
  • 9.
    D7 F ! %A % D7 F ! 0- '+ "/ D7 F ) ! " C 6 " 8 $ 8 - '+ $ "/ 3 1 : 5 4 1 3 33 5 5 5: 5 1 3 5 3 4 4 5 : 5 35 34 1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08 EBITDA Adjustments EBITDA Without Non-recurring Effects Adjusted EBITDA Margin EBITDA Margin Without Non-recurring Effects C 6 " 8 $8 - $ / B <B 0 42B ( -$ &E !2 MH ) C . . -* ); ( " 8 ' H *C + ) -. " G !# "$ &' ( % ! " D N$ &' 54 % ! ? "$< 5 ) $5) $ 4 ; > #" " -. " G !# "$ &' ( % ! " D N$ &' 54 % ! ? "$< 54 ! 9
  • 10.
    = 8 - '+ "/ ) " C 6 " 8 $8 $ 83.0 69.9 12.4 (0.8) (10.6) (10.6) (47.6) (47.6) 1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08 E C 6 " 8 $ 8- $ / C " & % E8 2 " C " & % E8 I$< ( * C, ) 2 " 1 ( I) ; (* ) + ; "#" " H* ) C %8" "= $ 8 E, " ': 3 $ : + " %8" "= $ 8 " ' $ 1 + " 10
  • 11.
    C 7 8 + - '+ " "/ ) " C 6 " 8 $8 $ 3 505.2 4 386.8 347.5 339.5 347.5 5 221.1 197.0 197.0 1H07 1H08 2Q07 2Q08 1H07 1H08 2Q07 2Q08 C C 6 " 8 $8 - $ / H <) 42E ( -$ & B !2 MH ) . -* CC. H ); ( 8" ' H) -* . F % % ," 3: "$ 8+ " " $ E6F % % F 4 '; "H * + " ) B&+ F 41 H 6)* EB 2 6)* E ( 4 "2 11
  • 12.
    = 8 F " ! + <;" ! + - '+ "/ F # ." F 4,435 4,216 597 449 )" ( + -* + , ) . 2,979 2,760 C F 3,851 ' ( -* ) + . 3,838 = % GH"* B- 0 L ; . H $< ( !# " (= 2Q07 2Q08 ) ;> 1-* C C ) C Long Term Short Term Net Debt .( *" % ! +- B 8, / 0 ." F # 7.8 6.2 6.8 6.6 IGP-DI 5.8 53.5% Fixed Rate 12.8% 125.3% 123.3% 120.9% 113.0% Libor 0.7% 105.3% CDI/Selic 33.0% 2Q07 3Q07 4Q07 1Q08 2Q08 4 ? " )* C % CDI 4; B " )* + Average Term - Years !!; 9 '4 :1+ " -. GB < B2 ? $4 " O' 0 12
  • 13.
    * ="> '+ " 3 4 7 * 3 4: 3 34 3 4 9, * ="> 3 :3 :4 4 45 7 + -4 5/ - 1/ - / - / - / 1 C = 8 E, -3 / -3 / 3 - / : - / - / 4 C +" I " -3/ - :/ 5 -/ 4 - / 3 * B= % " " - / 4 -5 4/ -3 :/ - / : - / : 78+ ! E " -5 5/ -1 / - / 1 -3 3/ - 4/ F % % -3 / - : 4 / -/ -/ - / = * ="> :: - / 1 :4 44 -4/ = * 4: 3 34 3 4 44 : E 9, * =" / > ; ; () ( ( , 8 1, 7 + I 4 "4 # I & ; ( 9 ( " ) " 1"" ( 1 -B . B2 = 8 E, 9 " L (4 ! %'2 /$ " ( 0 " " 13
  • 14.
    * 8 " " !" *" +, " 8 % 8 +, " " 8 : 3 .) %A % D7 F " ': ! $ 5+ " , %8 "3 $4 8 +, " " C 8+ " ' 5 " $ + " 4 "> B " " %% % % " '3 5:+ , $ : " " %8" " 3 $ " ' 5+ " 8 "% " % % +" , %% & JB " 8 $"+ " ? ! " 8 > + % DD6 E " "$ % A + "+ $ + 8 K 8" 8+ &> = % GH"* B- ' 1 1+ " / " 1 $ + " ! $ $ >" ? $ , 8 , " $ $ $" @ &4 + 14
  • 15.
    " " " 0 # " "( " 1( 0 " < ( B 1 = > ( ( 2 1" " F 0 ; " " ( ( % :> ( " F " 1 ( 0#