This presentation provides an overview and financial analysis of the UTE Pecém power plant project in Brazil. It outlines key assumptions used in the analysis, including an energy price of R$125.95/MWh, availability of 615MW, and a 30-year useful life. It estimates annual fixed revenue of R$417.4 million and fixed costs of 7% of revenue for operation and maintenance. It also discusses sectoral taxes, fiscal benefits, a capital expenditure of US$1.346 billion to be financed with 75% leverage, and debt terms.

1. UTE Pecém - October 2007

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.
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3. UTE Pecem
Revenues and Costs
Energy price (ICB) = R$ 125.95 / MWh
COP/CEC = R$ 48.47/MWh
Flexibility = 100%
Availability = 615 MW
Useful Life = 30 years
Fixed Revenue
= (ICB – COP/CEC) x Availability
= (R$ 125.95 – R$ 48.47)/MWh x 615 MW x 24 hrs x 365 days
= R$ 417.4 million / year
Fixed Cost
Operation & Maintenance = 7% of Fixed Revenue
Dispatch
Margin on dispatch = R$ 3.68/ MWh
We assume that the plant will be dispatched 50% of the year
EBITDA
EBITDA Margin = 55%
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4. UTE Pecem
Sectorial Taxes and Fiscal Benefits
Sectorial Taxes
TUST = R$5.60/KW installed
R&D = 1% of Net Revenue
ANEEL’s ficalization fee = R$ 1.67/MWh
ONS fee = 25% of ANEEL’s fee
Fiscal Benefits
ADENE: 75% reduction on Taxable Income for 10 years
PAC (exemption of PIS/Cofins on capex)
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5. UTE Pecem
Capex and Financing
Capex
Total Capex = US$ 1.346 billion
Leverage = 75%
Hedge (USD) on 100% of capex
Financing
BNDES = 42%
Cost = TJLP (long term basic basic interest rate) + 2.25%
Term = 14 years
Grace period = 4 years for principal and interest
External Financing (IBD/IFC) = 33%
Cost = Libor + risk spread
Term = 13 to 16 years
Grace period = 4 years for principal e interest
We assume refinancing after amortization of debt and hedge on 100% of
debt (USD and Libor)
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6. October 2007
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