1. The company reported its 1Q07 earnings results, with António Martins da Costa, Chief Executive Officer, and Antonio José Sellare, Chief Financial Officer, presenting.
2. Volume of energy distributed grew year-over-year, with increases in Enersul's concession area and the share of free customers. Programs to curb losses resulted in lower commercial losses.
3. Generation volume increased due to the full capacity of Peixe Angical and Mascarenhas' 4th engine. New contracts and authorizations expanded generation opportunities going forward.
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1Q07 Results
1. Conference Call
1Q07 Earnings Results
António Martins da Costa
Chief Executive Officer
Antonio José Sellare
Chief Financial Officer
Flavia Heller
Investor Relations Officer
May 02, 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.
2
4. Distribution
Volume of Energy Distributed (GWh) Energy Distributed by Customer Class
(% of total volume distributed)
3.0%
3.0%
5,966 6,143 6,143
5,966
793 823 1%
1%
2,037 2,105 35% 37%
3,136 3,214 64% 62%
1Q06 1Q07 1Q06 1Q07
Bandeirante Escelsa Enersul End Customers Energy in Transit Other
Growth in volume of energy distributed: market recovery in Enersul’s
concession area
Increase in the share of free clients in total volume distributed
4
5. Distribution
Program for Curbing Losses
In 1Q07, R$10 million were invested in programs to cut down technical
and commercial losses.
Evolution of commercial losses (% of distributed energy - last 12 months)
6.0 7.6 7.6
5.4 5.4 5.9 6.3
5.2
2.2 2.4 2.2 2.3
Jun/05 Mar/06 Dec/06 Mar/07 Jun/05 Mar/06 Dec/06 Mar/07 Jun/05 Mar/06 Dec/06 Mar/07
12.6% 13.2% 12.9% 13.0%
3.9% ~ 167 thousand inspections were made in 1T07
4.1% 4.0% 4.1%
~ 72 thousand frauds identified
8.5% 9.3% 8.9% 8.9% ~ 700 thousand inspections are scheduled for
2007
Jun/05 Mar/06 Dec/06 Mar/07
Technical Commercial
5
6. Vanguard Project
PDV – Capture of accumulated annualized savings Productivity (client/employee)
Cost of Personnel (R$MM/year)
Indirect (Accomplished)
68.4 168% 108% 101%
Direct (Accomplished) 1,287
8.4 1,223
Indirect(Estimated) 1,071 1,060 1,044
943 929
Direct (Estimated) 43.6 40.8
890
40.4 776 762
5.7 654
28.8 31.9 5.2 5.2 502 462
585
456
4.2 60.0
4.0
35.2 37.9 35.6
24.8 27.7
Bandeirante Escelsa Enersul
D ec/ 0 6 A cco mp lished M ar / 0 7 A cco mp lished Jun/ 0 7 D ec/ 0 7
t ill D ec/ 0 6 t ill M ar / 0 7 1998 2001 2005 2006 1Q07
IT Project
Schedule
2005 2006 2007 2008
SIT-Brasil
Integração
6
7. Generation
Volume of Energy Produced (GWh) UHE Peixe UHE PCH
Angical Mascarenhas São João
104% 1,469
720
1Q06 1Q07
Installed Capacity (MW) Peixe Angical and Mascarenhas’ 4th Engine:
452 50 25 1,043 – Full capacity in 1Q07
516 PCH São João:
– Energy contract started in Jan/07
– Commercial operation authorized in
2005
Peixe
Angical
4th Eng. PCH
Current
Apr/07
Masc. S. João
7
8. Generation – Growth Opportunities
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
Own initiatives
8
9. Commercialization
Volume of Energy Distributed (GWh)
2.4%
1,657 1,697
303 235
1,354 1,462
1Q06 1Q07
Other ENBR Group companies
Number of customers Growth of volume sold to free customers
35.2% 73 offset reduction of self-dealing and end of
contract with Enerpeixe
54
Contract renewal: opportunity to increase
customer base
1Q06 1Q07
9
11. Financial Performance
Net Revenues (R$ MM) EBITDA (R$ MM)
13.0% 20.2%
1,114 339
986 2%
10% 282
11% 11% 27%
6%
7%
16%
82% 79%
78% 71%
1Q06 1Q07 1Q06 1Q07
Distribution Generation Commercialization Distribution Generation Commercialization
Net Income (R$ MM)
28.9%
128
99
1Q06 1Q07
11
12. EBITDA 1Q06 x 1Q07 (R$ MM)
EBITDA (R$ MM)
+18 -10
+63 -7 -5 -23
+2 339
+19
282
1Q06 Distribution Genera- Commer-
Tariff *
Contingen-
Bad Debt PMSO Other 1Q07
tion cialization cies
EBITDA EBITDA
Margin Margin
28.6% 30.4%
* Enersul’s tariff readjustment and change in Bandeirante RAB
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13. Costs and Expenses
Manageable costs should be reduced as result of efficiency programs
Costs and Expenses Breakdown of Manageable Expenses
Breakdown 1Q07
st
Manageable Expenses 1 Quarter
%
R$ million 2007 2006
Non- Personnel 69.8 70.8 -1.0 -1.4%
Manageable
manageable
costs costs Material 9.7 8.1 1.5 18.6%
R$ 549 million R$ 226 million
(29%) Third Party Services 78.6 67.3 11.3 16.8%
(71%)
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%
R$ 775 million
Third Party Services Provisions Other
+ R$ 3.0 MM: O&M + R$ 10.5 MM: + R$ 6.0 MM: shortfall
Peixe Angical labor in reconciliation of
contingencies accounts between
+ R$ 5.5 MM: Market
Note: ENBR and Investco
1 Depreciation and amortization were excluded growth
13
14. Investments and Indebtedness
Indebtedness – 1Q07 (R$ Million) Total Debt Index
Net Debt evolution (Mar/07)
3%
1.8x*
3,126
1.6x*
(734) 33%
Net Debt / Ebitda
(542) 1,850 1,879
60%
4%
US$ TJLP
Gross Debt (-) Cash and (-) Regulatory Net Debt Net Debt
**
Fixed rate Floating rate
Mar.07 Marketable Assets and Mar.07 Dec.06
Securities Liabilities
** Includes Selic, CDI, IGP-M and INPC
* Ratio: Net Debt / EBITDA 12 months
Investments* – does not include LFA** (R$ MM) Universalization Program R$MM
658 (includes LFA **)
192 105
466
76
22 16
54
2007 (E) 1Q07 (A)
2007 (E) 1Q07 (A)
Distribution Generation
* Does not include interest capitalization and/or new projects **LFA: Light for all
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