Results Conference Call

2Q10

2Q10 Highlights
Consumption (Captive + Free Customers) 5.2% upon 2Q10, compare to 2Q09 and upon 7.4% compare to 1H10, driven by significant growth in both markets. Reduction of 70 bps in non-technical losses over billed energy in the low-voltage market compare to 12 months ending in March.

OPERATING PERFORMANCE

Net revenue of R$ 2,995.0 million in 1H10, with increase of 10.5%.

RESULTS

EBITDA of R$ 631.4 million in 1H10 , with increase of 10,7%. Net Income in the semester totaled R$ 218.8 million.

CAPITAL STRUCTURE

Strong cash balance of R$ 729.7 million as of Jun 30, 2010, after dividends payment of R$ 432.3 in Apr./10 Net Debt of R$ 1,805.2 million and Net Debt/EBITDA ratio of 1.4x.

Energy Consumption
Distribution
Electricity Consumption - (GWh) (Captive + Free Customers)

-0.5% a.a. 5.2%

5,278

5,211

5,228

5,498 Free Customers 13.5% Others 15.2% Residential 36.2%

23.9 C

22.9 C

23.4 C

22.7 C

Commercial 27.4%

Industrial 7.7%

2Q07

2Q08

2Q09

2Q10

Note: To preserve comparability in the market approved by ANEEL in the tariff adjustment process, the billed energy of the free customers Valesul, CSN and CSA were excluded in view of these customers planned migration to the core network.

Total Market
2Q10 performance
ELECTRICITY CONSUMPTION (GWh)- Quarter Captive and Free Market
+5.2%

5,228 609

5,498 743

+7.0%

+4.7%

1,862

1,992

+5.7%

1,566 89 1,477

1,639 133 1,505

+1.6%

4,619

4,755

935 476 459 2Q09 2Q10 2Q09

988 565 423 2Q10

866 44 822

880 45 835 2Q10 2Q09 2Q10

2Q09

2Q10

2Q09

RESIDENTIAL

INDUSTRIAL

COMMERCIAL CAPTIVE FREE

OTHERS

TOTAL

Collection

COLLECTION RATE BY SEGMENT Semester

97.0% 98.5% 99.9% 101.6% 102.6% 103.5%

94.0% 95.7%

COLLECTION RATE 12 Months

98.1%

97.4%

Total

Retail

Large Customers

Public Sector

Jun/09

Jun/10

1H09

1H10

Loss Prevention
LOSS EVOLUTION (12 months)
41.8% 42.7% 42.0% 37.8%

RECOVERY GWh
76.1 75.7 +0.6%

6,929

7,504

7,513

1H09 4,874 5,313 5,300

1H10

INCORPORATION GWh
2,055 Jun/09 2,191 Mar/10 Non-technical losses GWh Technical losses GWh % Non-technical losses / Low voltage market % Non-technical losses / Low voltage market - Regulatory 2,213 Jun/10 20.9 -38,7% 18.6 35.2

14.3

1H09

1H10

Net Revenue
NET REVENUE (R$ MN)
+10.5%

NET REVENUE FROM DISTRIBUTION (1H10)

Industrial 7.1% 2,995.0 Others (Captive) 11.9% Commercial 28.5%

+ 10.0%

2,710.9

1,273.3

1,400.7

Network Use (TUSD) 8.7% (Free+ Concessionaires) 2Q09 2Q10 1H09 1H10

Residential 43.8%

NET REVENUE BY SEGMENT (1H10)*

Generation 4.9% Commercialization 2.3%

Distribution 92.8%

*Eliminations not considered

Operating Costs and Expenses

COSTS (R$MN) 1H10
Manageable (distribution): 549.3 (21.5%)

MANAGEABLE DISTRIBUTION COSTS (R$MN)

+3.9%

-8.5%

528.9

549.3

Non Manageable (distribution): 1,887.0 (74.1%)

276.6

253.2

2Q09

2Q10

1H09

1H10

Generation and Commercialization: 116.0 (4.4%)

R$ MN PMSO Provisions

2Q09 121.7 85.0 66.5 18.5 69.9 276.6

2Q10 144.7 36.0 75.3 (39.2) 72.4 253.2

Var. 18.9% -57.6% 13.2% 3.7% -8.5%

1H09 238.4 150.6 126.4 24.2 140.0 528.9

1H10 277.3 129.3 138.8 (9.5) 142.7 549.3

Var. 16.3% -14.1% 9.8% 1.9% 3.9%

*Eliminations not considered

PDD Contingencies

Depreciation Total

EBITDA
CONSOLIDATED EBITDA (R$MN)
+10.7%

EBITDA BY SEGMENT* 1H10

631.4 Distribution 82.3% Generation 15.9%

+44.6%

570.1

(EBITDA Margin : 18.5%)

(EBITDA Margin : 68.3%)

319.1 220.6

Commercializaton 1.8% 2Q09 2Q10 1H09 1H10

*Eliminations not considered

(EBITDA Margin : 15.4%)

Net Income
NET INCOME 2Q10 R$ MILLION

98.5

(21.0) (110.7)

121.4 10.0 98.3

2Q09

EBTIDA

Financial Result

Taxes

Others

2Q10

10

Indebtedness
NET DEBT EVOLUTION
1,805 1,524

AMORTIZATION* JUN/10 (R$ MN)

Maturity: 3.3 years

1.3

1.4 164
Jun/10 2010
* Only Principal

495
2011

414
2012

481
2013

515
2014

121
2015

279
After 2015

Mar/10

DEBT COST EVOLUTION

12.17% 13.97% 9.84% 10.85% TJLP 23.5% US$/Euro 2.3%* CDI/Selic 74.2%

7.39%

7.62% 5.30%

6.15% Jun/10
* Considering Hedge

2007

2008 Real Cost

2009 Nominal Cost

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Investments
INVESTMENTS (R$MN)
R$ MN
+22.1%

1H09

1H10

Variation

Losses Combat
249.0 Development of Distribution Network Quality Improvements (optimization of structure and preventative maintenance) Generation Maintenance New Generation Projects Others 1H09 1H10 Total

62.30
64.70

50.02
85.03

-12.28
20.33

203.9

26.00

30.63

4.63

9.10 2.70 39.1 203.9

9.05 34.08 40.2 249.0

-0.05 31.38 1.1 45.1

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Important Notice
This presentation may include declarations that represent forward-looking statements according to Brazilian regulations and international movable values. These declarations are based on certain assumptions and analyses made by the Company in accordance with its experience, the economic environment, market conditions and future events expected, many of which are out of the Companys control. Important factors that can lead to significant differences between the real results and the future declarations of expectations on events or business-oriented results include the Companys strategy, the Brazilian and international economic conditions, technology, financial strategy, developments of the public service industry, hydrological conditions, conditions of the financial market, uncertainty regarding the results of its future operations, plain, goals, expectations and intentions, among others. Because of these factors, the Companys actual results may significantly differ from those indicated or implicit in the declarations of expectations on events or future results. The information and opinions herein do not have to be understood as recommendation to potential investors, and no investment decision must be based on the veracity, the updated or completeness of this information or opinions. None of the Companys assessors or parts related to them or its representatives will have any responsibility for any losses that can elapse from the use or the contents of this presentation. This material includes declarations on future events submitted to risks and uncertainties, which are based on current expectations and projections on future events and trends that can affect the Companys businesses. These declarations include projections of economic growth and demand and supply of energy, in addition to information on competitive position, regulatory environment, potential growth opportunities and other subjects. Various factors can adversely affect the estimates and assumptions on which these declarations are based on.

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