Results Conference Call

2010

Highlights
OPERATING PERFORMANCE
Total energy consumption in 2010 was 4.2% higher than in 2009, with the free and captive markets recording respective increases of 21.5% and 2.0%. All consumption categories posted growth. Third consecutive losses reduction. In december/10, the non-technical losses index reached 41.8% over the low-voltage market, compared to 12 months ending in December. CAPEX in 2010: R$ 700.6 millions: (i) Progress in the generation new projects construction and (ii) Accelerated program losses through new technologies..

Net Revenue of R$ 6,508.6 millions in 2010, with increase of 4.9%.

RESULTS

EBITDA of R$ 1,584.6 millions, growth of 14.7% and margin of 26.6%. Net Income of R$ 575.2 millions in 2010.

Cash balance of R$ 525.2 millions in dec/10.

CAPITAL STRUCTURE

Proposal of dividend payment (BDM of 03/25): R$ 351 millions. Net Debt of R$ 1,947.4 millions, with Net Debt/EBITDA in 1.2x.

Energy Consumption
Distribution
ELECTRICITY CONSUMPTION CAPTIVE + FREE CUSTOMERS (GWh)

+4.2%

21,492 25.9 C 24.6 C 25.0 C

22,384 Free 13.1%

14,9%

Industrial 7.7%
8,0%

Others 14.9% 24.5 C

15,6%

-1.1%

5,716 4Q09 3T07 4T09

5,655 2009 3T09 2009 2010 3T10 2010

27,0%

34,6%

Commercial 27.5% 4Q10 3T08 4T10

Industrial Residencial Comercial outros

Residential 36.8%
Livre

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
ELECTRICITY CONSUMPTION (GWh) CAPTIVE + FREE CUSTOMERS

Residencial Industrial
+4.6%

Comercial
+4.2%

Outros

+4.2%

21,492 22,384
2,408

Total
2,924

7,880

8,243

+5.0%

3,757
1,899 1,857

3,945
2,228 1,717

6,413 339 6,174 2009

6,679 523 6,157 2010

+2.2%

Comercial Livre
Comercial

19,084 19,459

Outros L
Outros

3,442 169 3,273 2009

3,516 173 3,342 2010

2009

2010

2009

2010

2009

2010

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

Residencial Industrial

Industrial Livre
CAPTIVE FREE

Total s/ Livre

Total Livre

Collection
COLLECTION RATE BY SEGMENT 12 MONTHS
97.3% 97.9% 100.4% 100.8% 107.6% 107.1%

93.1% 94.1%

COLLECTION RATE 12 MONTHS

97.3% 97.9%

Total

Total

Varejo

Retail
2009

Grandes Clientes 2010

Large Customers 2010

Poder Pblico

Public Sector

set/09' 2009 set/09'

set/10' 2010 set/10'

2009

Loss Prevention
LOSS (12 MONTHS)
42.5% 42.7% 42.4% 42.1% 41.8% 36.9% 7,269 7,504 7,549 7,554 7,493

RECOVERY GWh
+17.3%

178.2

151.9

5,149

5,313

5,352

5,330

5,278

2009

9M09 2009

9M10 2010

2010

2,120 Dec/09

2,191 Mar/10

2,197 Jun/10

2,214

2,215 Dec/10

INCORPORATION GWh
103.4 32.2 81.8
-16.8%

Sep/10

dez/09 mar/10

jun/10

set/10

dez/10

67.6

Non-technical losses GWh Technical losses GWh % Non-technical losses / Low voltage market % Non-technical losses / Low voltage market - Regulatory

9M09 2009

2009

9M10 2010

2010

Communities
Current Situation
Communities Before After Chapu Mangueira Before After Cidade de Deus Before After Babilnia Before After Casa Branca Before After Batam Before After Cantagalo Before After Clients 80 1.677 408 545 2.800 3.712 389 677 470 800 0 400 1.054 1.741 Losses 90% 3% 56% 5% 61% 11% 73%
TBD

Delinquency rate 70% 9% 74% 0% 68% 12% 54%

TBD

Santa Marta

58%
TBD

52%
TBD

62%
TBD

51%
TBD

68%
TBD

79%
TBD

11 communities more during 2011:

Pavo-Pavozinho, Providncia, Ladeira dos Tabajaras, Morro dos Cabritos, Borel, Novo Rio, Salgueiro, st st Complexo do Alemo (1 Part), Morro dos Macacos (1 nd nd Part), Cidade de Deus (2 Part), Batam (2 Part)

50 thousand clients

Net Revenue
NET REVENUE (R$ MN)
+4.9%

NET REVENUE BY SEGMENT (2010)*

6,206.9

6,508.6

Generation 4.8%
9M10

Commercialization 2.8% Distribution 92.4%

+ 5.2%

1,654.5

1,740.2
*Eliminations not considered

4Q09 4T09

4Q10 4T10

2009 2009

2010 2010

NET REVENUE FROM DISTRIBUTION 2010

Others (Captive)
12.3%

9M10

Network Use (TUSD) 9.4%

(Free + Concessionaires)

Industrial 7.4%

Commercial 28.7%

Residential 42.2%

Operating Costs and Expenses

COSTS (R$MN) 2010 DISTRIBUTION MANAGEABLE COSTS (R$MN)
+2.8%

Manageable (distribution): R$ 1,136.0 Non Manageable (distribution): R$ 3,358.5

(70.3%) (23.8%)

1,104.6
+8.8%

1,136.0

9M10

303.3

330.1

Generation and Commercialization: R$ 282.4

(5.9%)

4T09 4Q09

4T10 4Q10

2009 2009

2010 2010

*Eliminations not considered

R$ MN

4Q09

4Q10

Var %

2009

2010

Var %

PMSO
Provisions
PDD Contingencies

149.0
84.4 61.7 22.7 70.0 303.3

198.8
57.2 49.3 7.9 74.0 330.1

33.5
(32.2) -20.1 -70.5 5.8 8.8

522.6
302.0 246.0 56.0 280.1 1,104.6

637.4
208.4 254.8 (46.4) 290.2 1,136.0

22.0
-31.0 3.6 -22.7 3.6 2.8

Depreciation Total

EBITDA
CONSOLIDATED EBITDA (R$MN)
+14.7%

EBITDA BY SEGMENT* 2010

1,584.6 1,381.1

Distribution 84.2%
(EBITDA Margin: 24.2%) -20.0%

9M10

Generation 14.4%

(EBITDA Margin: 71.7%)

433.5

346.8

Commercialization 1.4%
4Q09 3T09 4T09

3T10 4Q10 4T10

2009 9M09 2009

(EBITDA Margin: 12.1%)

9M10 2010 2010

*Eliminations not considered

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Net Income
NET INCOME R$ MILLION Lucro Lquido - ANO

R$ Milhes 204
589

(235) 25 (7)
575

2009 2009

EBITDA EBTIDA

Resultado FINANCIAL Financeiro RESULT

Impostos TAXES

Outros OTHERS

2010 2010

11

IFRS Adjustments
Impacts on the results (R$ MN)

Net Income before ajustments Regulatory Assets and Liabilities Net Revenue Operating Expenses Financial Result Net Fixed Assets Depreciation Other Operating Expenses Receita de Construo Net Revenue Operating Expenses Social Contributions and Income Tax Net Impact Net Income after ajustments

2010 423.3 267.5 32.9 241.7 (7.1) (37.4) (37.1) (0.2) 0.0 552.8 (552.8) (78.2) 151.9 575.2

2009 604.8 199.4 247.6 (34.0) (14.2) (43.7) (38.7) (5.0) 0.0 527.0 (527.0) (171.7) (16.0) 588.8

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Dividends Payment History

Dividendos
DIVIDENDS (R$ MN)

1S08
2S08 1S09 351 203 408 187 432 2S09 363 351 1S10

ndos

2S10 1S11

1S08

2S08 1S09 1S08

2S09

1S10

2S10

1S11

DIVIDENDS PAID 2S08

PROPOSED DIVIDENDS

1S09 2S09 363 351

13

32

Indebtedness
NET DEBT EVOLUTION
1,637 1,947

AMORTIZATION* 2010 (R$ MN) Maturity: 3.1 years

501 1.2 1.2

414

474

584
309 141

3T10

Dec/09 9M09

Set/10'

Dez/10'

Dec/10 9M10

2011
* Only Principal

2012

2013

2014

2015

After 2015 Aps 2015

DEBT COST EVOLUTION

12.17%
13.97%

9.84% 7.39% 7.62%

11.08%

TJLP 25.7%

US$/Euro 1.7%*

9M10 %

CDI/Selic 72.6%

5.30%

4.88%

2007
2007 2007 2007

2007 2008
2008 2008 2008

2008 2009
2009 2009 2009

2009 set/10
2010 set/10 dez/10

set/10

Custo RealReal Cost Real Custo

CustoCusto Real Real

Nominal Nominal * Considering Hedge Custo Cost Custo Nominal

Custo Nominal Custo Nominal

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Investments
CAPEX BREAKDOWN (R$MM) 2010
700.6 546.7 354.7 563.8

CAPEX (R$MN)
+24.3%

Generation Maintenance R$ 28.8 New Generation Projects R$ 93.1 Quality Improvements R$ 82.8 Losses Combat R$ 134.9

Others R$ 51.3

Develop. of Distribution System R$ 309.8

2007 2007 2007

2008 2008 2008

2009 2009 2009

2010 2010 2010

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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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