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Utilities Stock Guide

Weekly
Marcos Severine, CPNI Mariana Coelho, CNPI Marcel Shiomi, CNPI
+55 11 3073-3011 55.11 3073-3024 55.11 3073-3014
marcos.severine@itausecurities.com mariana.coelho@itausecurities.com marcel.shiomi@itausecurities.com

Valuation & Multiples International Peers

Multiples Comparison – Bubble Chart

Water Storage & Spot Price

Multiples Comparison – Radar Chart

Historical Electricity Consumption
Itaú Estimates
Consumption & Price Estimates
Consensus Estimates

Expiring Generation Concessions

Debt, Leverage & Capex

Stocks Performance Disclaimer

September 14, 2010

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Valuation & Multiples Back to cover

YE11 Fair Current Market 3m avg. P/E (x) EV/EBITDA (x) EV/Net RAB (x)*** EV/avg. MW (x)**** Dividend yield %
Upside/
Company Ticker Rating** Value Price WACC Cap Daily value
Downside
(R$) (R$) (R$ M) (R$ Th) 2010e 2011e 2012e 2010e 2011e 2012e 2010e 2011e 2012e 2010e 2011e 2012e 2010e* 2011e 2012e

Generation 24% 10.6% 35,258 47,275 12.6 10.5 8.9 6.9 5.9 5.2 - - - 5.0 4.6 4.4 3.3% 7.4% 8.1%
AES Tietê GETI4 OP 26.80 21.75 23% 9.1% 7,552 8,260 9.8 9.1 8.5 5.9 5.5 5.2 - - - 6.5 6.2 6.1 5.2% 11.0% 11.8%
Cesp CESP6 OP 32.50 25.87 26% 12.2% 7,749 17,150 14.2 9.7 8.0 6.7 5.4 4.7 - - - 3.0 2.7 2.5 1.2% 7.1% 7.1%
MPX MPXE3 OP 34.00 29.25 16% 10.9% 3,998 11,649 nm nm nm nm nm nm - - - nm nm nm nm nm nm
Tractebel TBLE3 MP 32.00 24.45 31% 10.4% 15,960 10,216 13.8 12.6 10.3 8.1 6.8 5.7 - - - 5.4 4.9 4.6 3.5% 4.2% 5.6%

Transmission 14% 8.4% 7,529 6,838 9.7 9.4 9.1 7.1 7.1 6.6 - - - - - - 7.3% 10.1% 10.4%
ISA Cteep TRPL4 UP 57.50 50.60 14% 8.4% 7,529 6,838 9.7 9.4 9.1 7.1 7.1 6.6 - - - - - - 7.3% 10.1% 10.4%

Distribution 28% 11.5% 8,866 25,905 5.0 5.7 6.4 3.8 11.8 4.2 1.4 1.6 1.4 - - - 8.7% 5.2% 9.5%
Celesc CLSC6 UP 46.00 35.04 31% 12.7% 1,352 667 4.5 4.5 3.6 2.8 2.9 2.1 0.9 0.9 0.8 - - - 5.6% 5.6% 7.0%
Coelce COCE5 UP 36.50 27.53 33% 11.7% 2,171 1,086 5.3 7.0 7.1 4.2 5.5 5.1 1.8 2.0 1.7 - - - 13.2% 10.0% 9.8%
Eletropaulo ELPL6 UP 38.30 31.94 20% 10.1% 5,343 24,152 5.2 neg 8.5 4.4 27.1 5.6 1.7 1.9 1.8 - - - 7.4% 0.0% 11.8%

Integrated 44% 11.5% 82,976 153,287 9.9 8.6 7.7 5.9 5.2 4.7 -2.1 -2.0 -1.8 6.4 5.5 5.4 4.3% 5.3% 6.1%
EDP ENBR3 OP 50.40 36.50 38% 11.0% 5,786 11,935 10.0 9.7 8.6 5.4 4.8 4.2 1.9 1.6 1.4 5.6 4.9 4.3 5.0% 5.2% 5.8%
Eletrobrás ON ELET3 OP 47.20 21.45 120% 12.5% 25,245 19,591 5.8 5.3 5.1 3.5 3.7 4.0 -26.0 -24.8 -22.6 1.3 1.5 1.7 6.3% 5.2% 5.4%
Eletrobrás PN ELET6 OP 47.20 25.65 84% 12.5% 25,245 19,030 7.1 6.4 6.2 4.1 4.2 4.4 -24.1 -23.0 -20.7 1.5 1.7 1.9 5.3% 4.3% 4.5%
Equatorial EQTL3 UP 10.70 10.60 1% 10.6% 1,150 3,658 6.1 6.2 5.4 4.1 3.9 3.3 1.4 1.3 1.2 - - - 3.6% 3.9% 5.3%
Cemig CMIG4 MP 37.40 27.47 36% 11.2% 16,674 40,326 12.0 10.6 8.7 6.3 5.5 4.8 1.8 1.6 1.5 4.8 4.6 4.5 4.1% 4.4% 5.4%
Copel CPLE6 OP 53.00 39.27 35% 13.2% 10,330 22,858 12.4 8.0 6.4 8.0 4.8 3.8 0.6 0.4 0.2 3.6 3.4 3.2 1.1% 5.9% 7.5%
CPFL Energia CPFE3 UP 41.90 39.97 5% 9.8% 19,231 19,227 12.3 11.6 13.7 8.0 7.7 8.7 4.9 4.8 4.9 23.9 18.9 19.2 3.9% 8.2% 7.0%
Light LIGT3 MP 30.30 22.36 36% 11.1% 4,560 16,661 10.3 8.9 6.2 5.7 5.7 4.4 0.9 1.0 1.0 -0.9 -0.3 -0.3 4.9% 5.6% 8.0%

Water 14% 9.8% 8,161 11,055 6.4 5.9 4.2 4.9 4.6 3.7 - - - - - - 4.1% 5.0% 6.6%
Sabesp SBSP3 UP 41.00 35.82 14% 9.8% 8,161 11,055 6.4 5.9 4.2 4.9 4.6 3.7 - - - - - - 4.1% 5.0% 6.6%

Electric & Water Utilities Average 33% 11.0% 142,791 244,360 9.2 8.5 7.5 5.7 6.7 4.8 -1.0 -0.9 -0.8 5.9 5.2 5.1 5.1% 6.1% 7.6%
Source: Itaú Securities, Bloomberg
* 2010e dividend yields exclude dividends already declared by the companies
** OP = Outperform, MP = Market-perform, UP = Underperform
*** EV/Net RAB for Intergrated companies were was calculated by assuming an EV/avg. MW for their generation arms of R$4.5 million/avg. MW
**** EV/avg. MW for Intergrated companies were calculated by assuming an EV/net RAB for their distribution arms of 1.5x

Average Daily Traded Value (R$ M) - 3 Months and 1 Month

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3

3 Months 1 Month
Source: Bloomberg

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Multiples Comparison - Bubble Chart Back to cover

EV/EBITDA 10E x 5Y EBITDA CAGR

10.0
CPFE3 CPLE6
9.0 TBLE3

8.0 TRPL4

7.0 LIGT3
EV/EBITDA 10E

CMIG4
6.0 GETI4
ENBR3 CESP6
5.0
ELPL6 ELET6
4.0 COCE5
SBSP3
EQTL3 ELET3
3.0 CLSC6
2.0

1.0
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

5Y EBITDA CAGR

Distribution Generation Integrated Transmission Water

Source: Itaú Securities

EV/EBITDA 11E x 5Y EBITDA CAGR

10.0

9.0 CPFE3

8.0 TRPL4 TBLE3

7.0 LIGT3
EV/EBITDA 11E

CESP6 GETI4
6.0
CMIG4 SBSP3 ELET6
5.0 COCE5 ENBR3

4.0
CLSC6 EQTL3
3.0
ELET3
2.0

1.0
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Generation 5Y EBITDA CAGR

Distribution Integrated Transmission Water

Source: Itaú Securities

Bubble size represents the stock liquidity (3-month avg. daily traded value).

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Multiples Comparison - Radar Chart Back to cover

AES Tietê (GETI4) Cesp (CESP6) Tractebel (TBLE3) ISA Cteep (TRPL4)

EV/EBITDA 10E EV/EBITDA 10E EV/EBITDA 10E EV/EBITDA 10E

3.0 2.0 2.0 2.0
2.0 Upside YE10 P/E 10E Upside YE10 P/E 10E
Upside YE10 P/E 10E 1.0 Upside YE10 1.0 P/E 10E 1.0
1.0
0.0 0.0 0.0 0.0

Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E

2y EBITDAg 2y EBITDAg 2y EBITDAg 2y EBITDAg

Celesc (CLSC6) Coelce (COCE5) Eletropaulo (ELPL6) EDP (ENBR3)

EV/EBITDA 10E EV/EBITDA 10E

1.5 EV/EBITDA 10E 1.5
EV/EBITDA 10E 2.0
1.0 2.0 1.0
Upside YE10 P/E 10E Upside YE10 1.0 P/E 10E Upside YE10 P/E 10E
0.5 Upside YE10 1.0 P/E 10E 0.5
0.0 0.0 0.0
0.0
Div Yield 10E EV/Sales 10E
Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E
2y EBITDAg
2y EBITDAg 2y EBITDAg
2y EBITDAg

Eletrobrás ON (ELET3) Eletrobrás PN (ELET6) Equatorial (EQTL3) Cemig (CMIG4)

EV/EBITDA 10E EV/EBITDA 10E EV/EBITDA 10E

4.0 EV/EBITDA 10E
3.0 1.0 1.5
Upside YE10 P/E 10E 2.0 Upside YE10 0.5 P/E 10E 1.0
2.0 Upside YE10 P/E 10E Upside YE10 P/E 10E
1.0 0.5
0.0 0.0 0.0
0.0
Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E
Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E
2y EBITDAg
2y EBITDAg 2y EBITDAg 2y EBITDAg

Copel (CPLE6) CPFL Energia (CPFE3) Light (LIGT3) Sabesp (SBSP3)

EV/EBITDA 10E EV/EBITDA 10E EV/EBITDA 10E EV/EBITDA 10E

6.0 2.0 2.0 2.0
4.0 1.0 Upside YE10 P/E 10E
Upside YE10 P/E 10E Upside YE10 P/E 10E Upside YE10 1.0 P/E 10E 1.0
2.0 0.0
0.0 -1.0 0.0 0.0

Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E Div Yield 10E EV/Sales 10E
Div Yield 10E EV/Sales 10E

2y EBITDAg 2y EBITDAg
2y EBITDAg 2y EBITDAg

Source: Itaú Securities

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Itaú Estimates Back to cover

Generation Transmission Distribution Integrated Water

Income Statement GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3

Net Revenue (R$M)

2010 1,717 2,876 0 4,082 1,672 4,055 2,334 8,855 5,041 29,319 29,319 1,266 12,460 6,148 11,025 5,918 7,143
2011 1,798 3,112 0 4,338 1,871 4,556 2,409 9,317 5,319 30,822 30,822 1,348 12,898 7,178 12,054 6,109 7,835
2012 1,868 3,279 649 4,752 2,089 5,053 2,720 10,131 5,666 33,216 33,216 1,520 14,312 8,136 12,331 6,785 9,082
EBITDA (R$ M)
2010 1,351 1,749 0 2,455 1,338 620 662 1,950 1,505 8,364 8,364 466 4,274 1,353 3,329 1,260 3,056
2011 1,439 1,992 0 2,752 1,514 588 555 370 1,584 9,278 9,278 450 4,746 2,164 3,550 1,322 3,282
2012 1,497 2,102 394 3,123 1,708 713 597 1,732 1,671 10,163 10,163 502 5,331 2,669 3,193 1,703 4,045
Net Income (R$ M)
2010 843 597 0 1,155 792 302 404 1,019 580 3,769 3,769 189 1,557 864 1,563 444 1,269
2011 910 876 0 1,268 813 302 306 (433) 598 4,176 4,176 186 1,763 1,342 1,663 511 1,387
2012 979 1,064 149 1,557 845 377 301 630 676 4,341 4,341 213 2,164 1,686 1,407 731 1,957
Net Debt (R$ M)
2010 411 3,930 959 3,809 1,910 396 588 3,317 2,313 7,360 7,360 778 10,314 437 7,509 2,678 6,954
2011 407 3,018 1,595 2,860 3,288 360 856 4,682 1,785 12,314 12,314 623 9,270 64 8,139 2,973 7,009
2012 291 2,080 1,522 1,703 3,692 111 854 4,355 1,273 18,330 18,330 490 8,768 (139) 8,428 2,964 6,870
Total Debt (R$ M)
2010 918 4,555 1,848 5,157 2,178 950 1,012 4,646 2,775 21,405 21,405 1,296 13,195 1,849 8,983 3,553 7,898
2011 918 3,562 2,081 4,301 3,632 943 891 5,792 2,330 22,747 22,747 1,256 12,845 1,141 9,088 3,954 7,879
2012 918 3,118 2,075 4,152 4,146 874 925 5,784 2,071 24,549 24,549 1,167 12,713 970 9,341 4,264 8,383

Balance Sheet GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3
Total Assets (R$ M)
2010 2,178 16,254 3,126 11,922 7,576 4,766 3,404 12,153 11,389 135,971 135,971 3,196 30,357 14,625 18,199 9,397 23,403
2011 2,182 15,687 3,761 11,772 8,802 4,941 3,095 12,045 11,397 137,200 137,200 3,420 30,602 15,147 18,524 10,064 24,646
2012 2,310 15,700 4,028 12,515 9,374 5,274 3,256 12,667 11,747 138,887 138,887 3,644 31,629 16,175 18,856 10,904 26,734
Shareholders' Equity (R$ M)
2010 501 8,970 1,278 4,278 4,225 1,956 1,159 3,280 4,573 78,662 78,662 980 11,057 9,489 5,175 3,097 11,459
2011 501 9,249 1,680 4,883 4,266 2,183 1,250 2,847 4,872 81,463 81,463 1,123 11,975 10,194 5,258 3,352 12,437
2012 501 9,716 1,791 5,552 4,308 2,466 1,340 2,847 5,210 84,375 84,375 1,275 13,102 11,079 5,328 3,718 13,860

DuPont Analysis GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3
Profit Margin
2010 49% 21% - 28% 47% 7% 17% 12% 12% 13% 13% 15% 12% 14% 14% 7% 18%
2011 51% 28% - 29% 43% 7% 13% -5% 11% 14% 14% 14% 14% 19% 14% 8% 18%
2012 52% 32% 23% 33% 40% 7% 11% 6% 12% 13% 13% 14% 15% 21% 11% 11% 22%
Asset Turnover
2010 79% 18% 0% 34% 22% 85% 69% 73% 44% 22% 22% 40% 41% 42% 61% 63% 31%
2011 82% 20% 0% 37% 21% 92% 78% 77% 47% 22% 22% 39% 42% 47% 65% 61% 32%
2012 81% 21% 16% 38% 22% 96% 84% 80% 48% 24% 24% 42% 45% 50% 65% 62% 34%
Financial Leverage
2010 4.3 1.8 2.4 2.8 1.8 2.4 2.9 3.7 2.5 1.7 1.7 3.3 2.7 1.5 3.5 3.0 2.0
2011 4.4 1.7 2.2 2.4 2.1 2.3 2.5 4.2 2.3 1.7 1.7 3.0 2.6 1.5 3.5 3.0 2.0
2012 4.6 1.6 2.2 2.3 2.2 2.1 2.4 4.4 2.3 1.6 1.6 2.9 2.4 1.5 3.5 2.9 1.9
Return on Equity (ROE)
2010 168% 7% 0% 27% 19% 15% 35% 31% 13% 5% 5% 19% 14% 9% 30% 14% 11%
2011 182% 9% 0% 26% 19% 14% 24% -15% 12% 5% 5% 17% 15% 13% 32% 15% 11%
2012 195% 11% 8% 28% 20% 15% 22% 22% 13% 5% 5% 17% 17% 15% 26% 20% 14%
Return on Asset (ROA)
2010 39% 4% 0% 10% 10% 6% 12% 8% 5% 3% 3% 6% 5% 6% 9% 5% 5%
2011 42% 6% 0% 11% 9% 6% 10% -4% 5% 3% 3% 5% 6% 9% 9% 5% 6%
2012 42% 7% 4% 12% 9% 7% 9% 5% 6% 3% 3% 6% 7% 10% 7% 7% 7%

Cash Flow GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3
FCFF (R$ M)
2010 644 1,160 (1,685) (777) (88) 145 278 967 172 (1,515) (1,515) 271 (872) (292) 770 543 462
2011 939 1,369 (359) 1,771 (170) 148 215 164 660 (642) (642) 171 2,176 200 769 67 462
2012 942 1,446 295 2,040 716 247 269 742 685 (565) (565) 148 2,153 389 1,236 299 832
Dividends (R$ M)
2010 843 149 0 559 753 76 283 1,019 290 1,533 1,533 41 775 205 1,523 222 338
2011 910 598 0 662 773 76 214 0 299 1,253 1,253 44 830 638 1,580 256 408
2012 979 598 149 887 803 94 211 630 338 1,302 1,302 61 1,020 801 1,337 365 535
Source: Itaú Securities

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Consensus Estimates Back to cover

Generation Transmission Distribution Integrated Water

Income Statement GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3

Net Revenue (R$M)

2010 1,717 2,814 38 4,036 1,691 3,921 2,394 8,779 4,947 23,767 23,767 1,756 12,433 6,089 11,340 5,821 7,115
2011 1,822 2,978 334 4,196 1,858 4,226 2,371 9,027 5,351 25,390 25,390 1,818 13,563 6,818 12,270 6,219 7,592
2012 1,891 3,155 753 4,629 2,034 4,751 2,591 9,474 5,780 25,579 25,579 1,770 14,717 7,396 13,170 6,699 8,224
EBITDA (R$ M)
2010 1,353 1,730 (64) 2,388 1,384 460 688 1,772 1,476 5,585 5,585 578 4,226 1,652 3,179 1,281 3,111
2011 1,439 1,884 48 2,691 1,524 510 597 1,603 1,583 5,945 5,945 596 4,840 2,077 3,511 1,437 3,252
2012 1,490 1,982 335 3,034 1,658 671 560 1,606 1,759 5,701 5,701 558 5,270 2,268 3,911 1,578 3,575
Net Income (R$ M)
2010 823 548 1 1,138 818 210 393 913 555 2,834 2,834 203 1,837 970 1,469 501 1,235
2011 881 660 11 1,301 802 232 318 666 576 3,415 3,415 216 2,141 1,233 1,578 581 1,322
2012 918 798 104 1,510 830 328 283 634 666 4,275 4,275 227 2,429 1,396 1,708 645 1,489

Itaú vs. Consensus GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3

Net Revenue
2010 0.0% 2.2% -100.0% 1.2% -1.1% 3.4% -2.5% 0.9% 1.9% 23.4% 23.4% -27.9% 0.2% 1.0% -2.8% 1.7% 0.4%
2011 -1.3% 4.5% -100.0% 3.4% 0.7% 7.8% 1.6% 3.2% -0.6% 21.4% 21.4% -25.8% -4.9% 5.3% -1.8% -1.8% 3.2%
2012 -1.2% 3.9% -13.8% 2.7% 2.7% 6.4% 5.0% 6.9% -2.0% 29.9% 29.9% -14.2% -2.7% 10.0% -6.4% 1.3% 10.4%
EBITDA
2010 -0.1% 1.1% -100.0% 2.8% -3.3% 34.7% -3.8% 10.0% 2.0% 49.7% 49.7% -19.4% 1.1% -18.1% 4.7% -1.6% -1.8%
2011 0.0% 5.8% -100.0% 2.3% -0.7% 15.5% -7.0% -76.9% 0.1% 56.1% 56.1% -24.5% -1.9% 4.2% 1.1% -8.0% 0.9%
2012 0.5% 6.1% 17.5% 2.9% 3.0% 6.3% 6.6% 7.8% -5.0% 78.3% 78.3% -9.9% 1.2% 17.7% -18.4% 8.0% 13.2%
Net Income
2010 2.5% 9.0% -100.0% 1.5% -3.2% 43.7% 2.8% 11.6% 4.5% 33.0% 33.0% -6.9% -15.3% -10.9% 6.4% -11.5% 2.7%
2011 3.4% 32.8% -100.0% -2.6% 1.5% 30.3% -3.8% -165.1% 3.8% 22.3% 22.3% -13.8% -17.6% 8.9% 5.4% -12.0% 4.9%
2012 6.6% 33.3% 42.7% 3.1% 1.8% 15.0% 6.2% -0.6% 1.5% 1.5% 1.5% -6.0% -10.9% 20.8% -17.6% 13.4% 31.5%

Cash Flow GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3

DPS (R$)
2010 2.2 0.8 0.0 0.9 4.6 1.3 3.4 6.1 1.9 0.4 1.2 1.5 1.3 0.9 2.8 1.6 1.4
2011 2.3 1.5 0.0 1.2 4.7 1.8 2.6 4.3 2.0 0.6 1.2 1.4 1.7 1.6 3.1 1.7 1.4
2012 2.4 1.8 0.5 1.4 5.4 1.4 2.7 3.8 2.6 0.8 1.1 1.2 2.3 2.0 3.4 2.0 1.9
Dividend Yield
2010 10.0% 3.0% 0.0% 3.7% 9.1% 3.8% 12.4% 19.1% 5.1% 2.1% 4.5% 13.7% 4.8% 2.3% 7.0% 7.1% 3.8%
2011 10.7% 5.7% 0.1% 4.7% 9.4% 5.0% 9.4% 13.4% 5.5% 2.7% 4.6% 13.5% 6.3% 4.0% 7.8% 7.7% 3.9%
2012 11.3% 7.0% 1.5% 5.8% 10.6% 4.0% 9.7% 12.0% 7.1% 3.6% 4.4% 11.7% 8.2% 5.1% 8.5% 8.9% 5.3%

Multiples GETI4 CESP6 MPXE3 TBLE3 TRPL4 CLSC6 COCE5 ELPL6 ENBR3 ELET3 ELET6 EQTL3 CMIG4 CPLE6 CPFE3 LIGT3 SBSP3

P/E
2010 10.1 15.5 nm 14.0 9.4 6.4 5.5 5.9 10.4 8.6 10.2 5.7 10.2 11.1 13.1 9.1 6.6
2011 9.4 12.8 nm 12.3 9.6 5.8 6.7 8.0 10.1 7.1 8.5 5.3 8.8 8.7 12.2 7.8 6.2
2012 9.0 10.6 nm 10.6 9.3 4.1 7.6 8.4 8.7 5.7 6.8 5.1 7.7 7.7 11.3 7.1 5.5
EV/EBITDA
2010 5.8 7.2 nm 7.7 6.2 4.2 4.4 4.8 5.4 5.4 5.4 4.2 5.9 6.4 8.1 5.6 4.6
2011 5.5 6.2 nm 7.3 6.2 3.4 4.6 5.4 5.1 5.5 5.5 3.2 5.6 5.2 7.6 5.0 4.6
2012 5.3 5.4 nm 6.2 6.5 2.6 5.4 6.2 4.3 6.6 6.6 3.2 4.9 4.6 7.0 4.8 4.2
Source: Bloomberg, Itaú Securities

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 AES Tietê Cemig

2.4

59.4
0%
20%
40%
60%
80%
100%
Eletrobras

5.7
Sabesp

2.3
Eletrobras

Eletropaulo

4.6
Cesp CPFL
2.3

Source: Itaú Securities

ISA Cteep

3.4
Sabesp
Cesp
2.2

Celesc MPX

2.8
Light
2.1

Sabesp EDP

2.5
Eletropaulo
1.7

Eletropaulo
EDP

2.5
Equatorial
1.7

USD-denominated debt
CPFL
Coelce

2.4
Tractebel
1.6

Tractebel
Cemig

2.2
Leverage

Copel EDP
1.5

Debt Structure

Light

2.2
Net Debt / EBITDA (YE10E)

EBITDA YE10 / ST Debt YE10

Amortization Capacity
USD debt vs. BRL debt (YE010)
Coelce
ISA Cteep
1.4

Tractebel

1.9
Light
Coelce
0.9

Copel

1.8
BRL-denominated debt
Cemig
Eletrobras
0.9

Cesp

1.6
AES Tietê

Celesc
0.6

Equatorial

1.6
AES Tietê

Copel
0.3

CPFL ISA Cteep

1.0
Debt, Leverage & Capex

Celesc AES Tietê

0.3

MPX

0.0

-7-
Tractebel AES Tietê
1.0
22.3

0%
20%
40%
60%
80%
100%

ISA Cteep Eletrobras

0.9

Copel
9.6

Copel CPFL Eletropaulo

3.2

0.9

Cemig Coelce Celesc

2.5

0.8

Tractebel
Eletrobras Copel
1.9

0.7

Cesp
Short-term debt

EDP Equatorial
1.8

0.6

Celesc
Light Coelce
0.6
1.5

Equatorial
Sabesp Light
1.5

0.6

EDP
Amortization

CPFL Cemig
0.6
1.5

Debt Structure

Capex 10E / EBITDA 10E

ISA Cteep
Investment Capacity
Cash / ST Debt (YE10E)

Short-term vs. Long-term (YE10)

Celesc Tractebel
1.1

0.5

Light
Back to cover

Long-term debt

Coelce Sabesp
0.8

0.5

Sabesp

Equatorial EDP
0.8

0.4

Cemig

Eletropaulo ISA Cteep

0.7

0.3

Eletropaulo

Cesp Eletrobras Cesp

0.6

0.1

AES Tietê AES Tietê CPFL

0.4

0.0
Stocks Performance Back to cover

Current Stock Performance Avg. Daily Value Traded (R$ Th)

YE11 Fair Upside/
Company Ticker Rating* Price
Value (R$) Downside
(R$) 1D 5D 1M 3M 12M YTD 1M 3M

Generation
AES Tietê GETI4 OP 26.80 21.75 23% -0.6% 0.0% 3.6% 12.4% 16.0% 17.0% 9,309 8,260
Cesp CESP6 OP 32.50 25.87 26% 1.3% 4.3% 1.5% 7.9% 16.3% 8.6% 18,685 17,150
MPX MPXE3 OP 34.00 29.25 16% -0.7% 1.7% 13.4% 31.8% 57.7% 30.0% 16,800 11,649
Tractebel TBLE3 MP 32.00 24.45 31% 3.3% 2.3% 7.8% 15.4% 18.3% 14.2% 10,808 10,216

Transmission
ISA Cteep TRPL4 UP 57.50 50.60 14% 2.9% 2.4% 5.9% 11.3% 14.5% 5.6% 7,078 6,838

Distribution
Celesc CLSC6 UP 46.00 35.04 31% -1.4% -0.9% -0.6% 2.5% 3.2% 2.6% 636 667
Coelce COCE5 UP 36.50 27.53 33% -1.7% -2.0% -7.3% 5.8% 9.2% -1.2% 1,445 1,086
Eletropaulo ELPL6 UP 38.30 31.94 20% 2.0% 3.2% -2.6% 6.6% 12.0% 16.3% 31,966 24,152

Integrated
EDP ENBR3 OP 50.40 36.50 38% 0.0% -0.4% 0.3% 7.5% 39.2% 15.1% 12,956 11,935
Eletrobrás ON ELET3 OP 47.20 21.45 120% -1.7% 0.8% -3.4% -8.7% 6.2% -16.2% 14,973 19,591
Eletrobrás PN ELET6 OP 47.20 25.65 84% -0.8% 3.2% -3.2% -7.1% 7.4% -13.9% 18,371 19,030
Equatorial EQTL3 UP 10.70 10.60 1% -1.1% -6.6% -14.4% -1.8% -12.4% -13.7% 5,394 3,658
Cemig CMIG4 MP 37.40 27.47 36% 0.4% 3.1% 7.7% 8.1% 14.5% 0.4% 58,509 40,326
Copel CPLE6 OP 53.00 39.27 35% 1.0% 5.3% 2.2% 18.7% 31.5% 7.8% 21,852 22,858
CPFL Energia CPFE3 UP 41.90 39.97 5% 0.7% 2.0% -0.8% 5.9% 33.2% 21.9% 23,670 19,227
Light LIGT3 MP 30.30 22.36 36% 1.8% 1.9% 1.4% 4.2% -1.3% -6.6% 18,274 16,661

Water
Sabesp SBSP3 UP 41.00 35.82 14% 0.6% 5.9% 1.5% 4.1% 4.9% 4.7% 8,002 11,055

Market Indexes
Ibovespa IBOV 85,000 67,691 26% -0.5% 1.9% 1.5% 5.0% 12.1% -1.3%
IEE IEEX 25,680 0.4% 1.2% 1.5% 8.5% 15.3% 5.6%
Source: Itaú Securities, Bloomberg
* OP = Outperform, MP = Market-perform, UP = Underperform

5-Day Performance 1-Month

1-Month Performance
Performance Year-to-Date Performance
Year-To-Date Performance

5.9% SBSP3 13.4% MPXE3 30.0% MPXE3

5.3% CPLE6 7.8% TBLE3 21.9% CPFE3
4.3% CESP6 7.7% CMIG4 17.0% GETI4
3.2% ELET6 5.9% TRPL4 16.3% ELPL6
3.2% ELPL6 3.6% GETI4 15.1% ENBR3
3.1% CMIG4 2.2% CPLE6 14.2% TBLE3
2.4% TRPL4 1.5% SBSP3 8.6% CESP6
2.3% TBLE3 1.5% IEEX 7.8% CPLE6
2.0% CPFE3 1.5% IBOV 5.6% TRPL4
1.9% IBOV 1.5% CESP6 5.6% IEEX
1.9% LIGT3 1.4% LIGT3 4.7% SBSP3
1.7% MPXE3 0.3% ENBR3 2.6% CLSC6
1.2% IEEX -0.6% CLSC6 0.4% CMIG4
0.8% ELET3 -0.8% CPFE3 -1.2% COCE5
0.0% GETI4 -2.6% ELPL6 -1.3% IBOV
-0.4% ENBR3 -3.2% ELET6 -6.6% LIGT3
-0.9% CLSC6 -3.4% ELET3 -13.7% EQTL3
-2.0% COCE5 -7.3% COCE5 -13.9% ELET6
-6.6% EQTL3 -14.4% EQTL3 -16.2% ELET3

-8% -3% 2% 7% -17% -12% -7% -2% 3% 8% 13% 18% -20% -10% 0% 10% 20% 30%
Source: Itaú Securities

-8-
International Peers Back to cover

Stocks Performance (US$) P/E EV/EBITDA Dividend Yield

Last Price Market Cap
Ticker
(US$) (US$ M)
5D 1M 3M YTD 2010e 2011e 2012e 2010e 2011e 2012e 2010e 2011e 2012e

AES Tietê GETI4 12.72 4,417 -1.0% 0.9% 6.1% 14.7% 9.8 9.1 8.5 5.9 5.5 5.2 5.2% 11.0% 11.8%
Cesp CESP6 15.13 4,532 3.3% -1.1% 1.9% 6.4% 14.2 9.7 8.0 6.7 5.4 4.7 1.2% 7.1% 7.1%
MPX MPXE3 17.11 2,338 0.7% 10.5% 24.4% 27.4% nm nm nm nm nm nm nm nm nm
Tractebel TBLE3 14.30 9,334 1.3% 5.1% 8.9% 12.0% 13.8 12.6 10.3 8.1 6.8 5.7 3.5% 4.2% 5.6%
ISA Cteep TRPL4 29.59 4,403 1.4% 3.2% 5.0% 3.5% 9.7 9.4 9.1 7.1 7.1 6.6 7.3% 10.1% 10.4%
Celesc CLSC6 20.49 790 -1.8% -3.1% -3.3% 0.6% 4.5 4.5 3.6 2.8 2.9 2.1 5.6% 5.6% 7.0%
Coelce COCE5 16.10 1,270 -3.0% -9.7% -0.1% -3.1% 5.3 7.0 7.1 4.2 5.5 5.1 13.2% 10.0% 9.8%
Eletropaulo ELPL6 18.68 3,125 2.2% -5.1% 0.7% 14.0% 5.2 neg 8.5 4.4 27.1 5.6 7.4% 0.0% 11.8%
EDP ENBR3 21.35 3,384 -1.4% -2.3% 1.5% 12.8% 10.0 9.7 8.6 5.4 4.8 4.2 5.0% 5.2% 5.8%
Eletrobrás ON ELET3 12.54 14,764 -0.1% -5.8% -13.8% -17.8% 5.8 5.3 5.1 3.5 3.7 4.0 6.3% 5.2% 5.4%
Eletrobrás PN ELET6 15.00 14,764 2.2% -5.7% -12.3% -15.6% 7.1 6.4 6.2 4.1 4.2 4.4 5.3% 4.3% 4.5%
Equatorial EQTL3 6.20 672 -7.5% -16.6% -7.3% -15.4% 6.1 6.2 5.4 4.1 3.9 3.3 3.6% 3.9% 5.3%
Cemig CMIG4 16.07 9,751 2.1% 5.0% 2.1% -1.6% 12.0 10.6 8.7 6.3 5.5 4.8 4.1% 4.4% 5.4%
Copel CPLE6 22.97 6,041 4.2% -0.4% 12.0% 5.7% 12.4 8.0 6.4 8.0 4.8 3.8 1.1% 5.9% 7.5%
CPFL Energia CPFE3 23.38 11,247 1.0% -3.3% 0.0% 19.5% 12.3 11.6 13.7 8.0 7.7 8.7 3.9% 8.2% 7.0%
Light LIGT3 13.08 2,667 0.9% -1.2% -1.6% -8.5% 10.3 8.9 6.2 5.7 5.7 4.4 4.9% 5.6% 8.0%
Brazil Average 0.3% -1.9% 1.5% 3.4% 9.2 8.5 7.7 5.6 6.7 4.8 5.2% 6.0% 7.5%

EDF EDF FP 42.62 78,803 2.1% -0.4% 0.1% -28.4% 16.1 14.4 12.5 6.8 6.5 6.1 3.5% 3.7% 4.1%
GDF Suez GSZ FP 34.33 77,216 2.7% 3.9% 10.1% -20.9% 13.3 11.9 11.0 6.9 6.2 5.8 5.7% 6.0% 6.5%
EDP EDPFY 33.78 12,352 9.0% 8.1% 9.3% -24.0% 11.6 12.2 n/a n/a n/a n/a 5.0% 5.5% n/a
Endesa ELE SM 25.88 27,400 6.4% 7.3% 12.7% -24.6% 8.7 9.4 8.8 5.3 5.3 5.1 5.4% 5.5% 5.9%
Enel ENEL IM 5.15 48,427 4.3% 5.2% 7.2% -11.2% 8.6 8.5 8.0 7.0 6.9 6.7 6.9% 7.1% 7.5%
Iberdrola IBE SM 7.48 40,264 4.5% 7.2% 16.7% -21.7% 11.3 10.9 9.8 8.3 7.9 7.3 5.7% 5.9% 6.3%
National Grid PLC NG/ LN 872.81 30,511 3.6% 3.7% 16.3% -11.6% nm nm nm 9.0 8.4 8.0 0.0% 0.0% 0.0%
Europe Average 4.6% 5.0% 10.4% -20.4% 11.6 11.2 10.0 7.2 6.9 6.5 4.6% 4.8% 5.1%

AES Corp AES 11.19 8,885 1.7% 5.4% 7.8% -15.9% 11.8 10.0 8.9 5.7 5.2 4.9 0.0% 0.0% 0.0%
Duke Energy Corp DUK 17.66 23,288 1.8% 3.8% 8.9% 2.6% 13.3 13.2 12.8 8.1 7.5 7.1 5.5% 5.7% 5.8%
Exelon EXC 42.23 27,914 1.1% 2.1% 4.9% -13.6% 10.7 10.4 13.6 5.8 6.2 7.3 5.0% 5.1% 5.1%

USA Average 1.6% 3.8% 7.2% -9.0% 11.9 11.2 11.7 6.5 6.3 6.4 3.5% 3.6% 3.6%

Edenor EDN 6.90 313 2.2% 5.2% -5.1% -12.7% 3.8 3.9 1.5 n/a n/a n/a n/a n/a n/a
Pampa Energia PAMP AR 0.42 553 1.2% 1.5% -0.7% -4.2% -1.7 0.9 0.3 6.9 5.1 3.6 n/a n/a n/a
Transener TRAN AR 0.23 102 -1.1% 0.9% -0.1% -21.7% 12.9 10.1 45.3 4.8 3.9 5.6 n/a n/a n/a
Argentina Average 0.8% 2.5% -2.0% -12.9% 5.0 5.0 15.7 5.9 4.5 4.6 n/a n/a n/a

Colbun COLBUN 0.29 5,008 2.8% -2.2% -5.8% 5.8% 26.0 28.6 14.3 19.3 14.5 9.5 0.0% 0.0% 0.0%
Endesa EOC 54.77 14,974 4.3% 9.6% 18.2% 9.0% 0.0 0.0 0.0 n/a n/a n/a 7.1% 6.6% 6.6%
Enersis ENI 23.73 15,496 5.1% 11.0% 18.9% 3.8% 0.0 0.0 0.0 n/a n/a n/a 5.2% 6.3% 6.5%
Chilectra CHILECTR CI 2.43 2,797 -0.6% -2.3% -13.9% -8.1% n/a n/a n/a n/a n/a n/a n/a n/a n/a
Chile Average 2.9% 4.0% 4.4% 2.6% 8.7 9.5 4.8 19.3 14.5 9.5 4.1% 4.3% 4.4%

ISA SA ISA CB 7.57 8,389 1.0% 6.1% -0.6% -8.5% 39.4 37.8 30.0 7.0 6.6 6.1 n/a n/a n/a

Colombia Average 1.0% 6.1% -0.6% -8.5% 39.4 37.8 30.0 7.0 6.6 6.1 n/a n/a n/a

Source: Itaú Securities, Bloomberg

-9-
Water Storage & Spot Price Back to cover

Water Reservoirs Levels - % of Maximum Capacity (Monthly Average)

Southeast South

100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

0%
0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Série1 5Y Range 5Y Average 2010 Série1 5Y Range 5Y Average 2010

Northeast North

100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

0% 0%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Série1 5Y Range 5Y Average 2010 Série1 5Y Range 5Y Average 2010

Spot Price

600 R$/ MWh

High consumption and unfavorable This Week Last Week 2 Weeks Ago
500 hydrology caused the spot price to peak
over R$500/MWh in Jan/08 Southeast 118.82 126.38 106.68
400
South 118.82 126.38 106.68
300
Northeast 171.95 175.03 150.70
200

100 North 171.95 175.03 150.70

0
Sep-03

Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10
Dec-03

Mar-04

Jun-04

Dec-04

Mar-05

Jun-05

Dec-05

Mar-06

Jun-06

Dec-06

Mar-07

Jun-07

Dec-07

Mar-08

Jun-08

Dec-08

Mar-09

Jun-09

Dec-09

Mar-10

Jun-10

Source: Operador Nacianal do Sistema (ONS), Camara de Comercializacao de Energia Eletrica (CCEE)

- 10 -
Historical Electricity Consumption Back to cover

Brazil - avg. MW Brazilian Consumption Breakdown

North
60,000
7%
58,000
Northeast
56,000 15%
54,000
avg. MW

52,000

50,000

48,000 Southeast /
South
46,000 17% Center-west
61%
44,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009 2010

Southeast / Center-west Region - avg. MW South Region - avg. MW

40,000 10,500
35,000 10,000
30,000
9,500
25,000
avg. MW

avg. MW
9,000
20,000
8,500
15,000
8,000
10,000
5,000 7,500

0 7,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009 2010 2007 2008 2009 2010

Northeast Region - avg. MW North Region - avg. MW

10,000 4,200
9,000
4,000
8,000
7,000 3,800
6,000
avg. MW

avg. MW

3,600
5,000
4,000 3,400
3,000 3,200
2,000
3,000
1,000
0 2,800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 2008 2009 2010

2007 2008 2009 2010

Source: ONS

- 11 -
Consumption & Price Estimates Back to cover

Electricity Consumption (avg. GW) Auctioned Power Plant Projects (avg. MW) Estimated Capex (R$ million)

WPP
8y CAGR: +5.73%
HPP 24,463
78
8y CAGR: +5.34% 4,992 Imported Coal
76 Coal
74
8y CAGR: +4.94% Natural-Gas
72
71 LNG 17,126
3,568
69 Biomass
68 73
2,842 Diesel
12,566 13,073
66 2,618
64 70 Fuel-Oil
10,464
62 67 2,180 9,435
60 1,850
64 7,175
59 61 1,407
57 4,782
938
55 632 3,034
52 57
54
52

2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016
103% of EPE's forecast EPE's forecast 97% of EPE's forecast

Energy Balance: EPE's scenario (avg. GW) Energy Balance: 103% of EPE's scenario (avg. GW) Energy Balance: 97% of EPE's scenario (avg. GW)

4.4 6.4
2.7
3.5 2.4 5.4
2.9 1.5 4.6
2.7 1.3
2.2 3.9 4.2
2.0 0.5 3.9
1.8
1.6 1.4 0.1 3.3 3.3
0.8 0.9 2.7 2.7 2.8 2.7
0.4 -0.2
-0.4 -0.2 -0.1
0.1
-1.0 -1.0 1.6
-1.8
-0.5 GDP Growth Rate: 4.96%
GDP Growth Rate: 4.35%
Energy Consumption: 5.73% -2.7 0.1
Energy Consumption: 5.34% 0.1

-2.1 2008 2009 2010 2011 2012 2013 2014 2015 2016
-4.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 GDP Growth Rate: 3.74%
Energy Consumption: 4.94%
With MC2's projects Without MC2's projects With MC2's projects Without MC2's projects With MC2's projects Without MC2's projects

Electricity Prices & Volumes (Existent vs New) Electricity Prices - Free Concession Renewal Electricity Prices - Renewal Price Cap of R$65/MWh

157 154 157 154

151 151
143 142 143 142
132 135 136 135
R$140/MWh 132
9 126
19 116 118 117 116
16 17
R$155/MWh 105 136 139 105
98 101 132 98 101
12 90
9 90
R$79/MWh 7 79 83 81 83 81
1 3 78 79 78
111
17 99
92 98 99
79 79 79 79 79
18 77 79 79
19 21 77 79
19 20 20 20 20
16 17
9 11
4 2 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016
Existent Energy New Energy Re-contracting
Existent Energy New Energy Regulated Market Average Existent Energy New Energy Regulated Market Average

Source: EPE, CCEE, Aneel, Itaú Securities

- 12 -
Expiring Generation Concessions Back to cover

Brazil's Assured Energy Companies Affected Current Prices vs. Possible Caps (R$/MWh)

Brazil's assured energy: 11,394 avg. MW expire in 6,224

54,552 avg. MW 2015-17
97.74 97.74
94.90
4,865
87.52 86.00 87.52
85.06
4,865 Current 83.08
average price
43,158 11,394 78.12
R$76.4/MWh 76.66 75.91
6,224
Price cap
72.33
30 assumption 66.40
R$65/MWh

306
Sold until Dec-2012 Sold until Dec-2013 Sold until Dec-2014

Sold until Dec-2012 Sold until Dec-2013 Sold until Dec-2014 Cemig Copel Cesp Furnas Chesf

Chesf Furnas Cesp Copel Série6 Sold until Dec-2012 Sold until Dec-2013 Sold until Dec-2014

Source: Aneel, CCEE, Eletrobrás, Cesp, Cemig, Copel, Itaú Securities Source: CCEE, Itaú Securities Source: CCEE, Itaú Securities

Cost per MWh (2008) Operating Costs per MWh - Other Players

Chesf's debt service will likely decrease

down to R$0/MWh starting in 2010. This
will result from the capitalization
announced by Eletrobrás on November 3,

13.00
33.80

13.10 21.30
11.80 32.10
13.88 4.70
18.90
18.20

15.70 11.52
14.10
29.80 16.60
14.20

13.20 14.14 7.90 6.80

12.60
3.70

Chesf Furnas Cesp Cemig Tractebel AES Tietê Jirau HPP Ponte de Pedra HPP Enerpeixe HPP

O&M Sector Charges Debt Service O&M Sector Charges

Source: Itaú Securities Source: Itaú Securities

- 13 -
Disclaimer Back to cover

Relevant Information
1. This report has been produced by Itaú Corretora de Valores S.A (“Itaú Corretora”), a subsidiary of Itaú Unibanco S.A., and distributed by Itaú Corretora or one of its affiliates (altogether, “Itaú
Unibanco Group”).
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sources believed to be reliable. Itaú Unibanco Group does not make any representation or warranty, express or implied, as to the completeness, reliability or accuracy of such information, nor is this
report intended to be a complete statement or summary of the investment strategies, markets or developments referred to herein. Opinions, estimates, and projections expressed herein constitute the
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- 14 -
 Equities
Christian Egan - CEO
Research

Carlos Constantini, CNPI - Head
Equity Strategy
Carlos Constantini, CNPI - Head
Susana Salaru, CNPI
Cida Souza, CNPI
Pedro Maia, CNPI
Banking & Financial Services
Alexandre Spada, CNPI
+55-11-3073-3001 carlos.constantini@itausecurities.com Oil, Gas & Petrochemicals + Agribusiness Industrials + Transportation & Logistic
Paula Kovarsky, CNPI - Sector Head +55-11-3073-3027 paula.kovarsky@itausecurities.com Renata Faber, CNPI - Sector Head +52-55-5262-0674 renata.faber@itausecurities.com
Diego Mendes, CNPI +55-11-3073-3029 diego.mendes@itausecurities.com Fernando Abdalla, CNPI +55-11-3073-3019 fernando.abdalla@itausecurities.com
+55-11-3073-3001 carlos.constantini@itausecurities.com Giovana Araújo, CNPI +55-11-3073-3036 giovana.araujo@itausecurities.com Filipe Abelha +55-11-3073-3034 filipe.abelha@itausecurities.com
+55-11-3073-3009 susana.salaru@itausecurities.com André Pinheiro +55-11-3073-3028 andre.pinheiro@itausecurities.com
+55-11-3073-3038 cida.souza@itausecurities.com
+55-11-3073-3065 pedro.maia@itausecurities.com Real Estate Utilities
David Lawant, CNPI - Sector Head +55-11-3073-3037 david.lawant@itausecurities.com Marcos Severine, CNPI - Sector Head +55-11-3073-3011 marcos.severine@itausecurities.com
Ricardo Lima +55-11-3073-3007 ricardo.lima@itausecurities.com Mariana Coelho, CNPI +55-11-3073-3024 mariana.coelho@itausecurities.com
Vivian Salomon +52-55-5262-0672 vivian.salomon@itausecurities.com Marcel Shiomi, CNPI +55-11-3073-3014 marcel.shiomi@itausecurities.com
+55-11-3073-3004 alexandre.spada@itausecurities.com Enrico Trotta +55-11-3073-3064 enrico.trotta@itausecurities.com

Steel & Mining + Pulp & Paper Economics

Consumer Goods & Retail + Food & Beverage Marcos Assumpção, CFA - Sector Head +55-11-3073-3021 marcos.assumpcao@itausecurities.com Guilherme da Nobrega, CNPI - Head +55-11-3708-2715 gcnobrega@itaubba.com.br
Juliana Rozenbaum, CFA - Sector Head +55-11-3073-3035 juliana.rozenbaum@itausecurities.com Alexandre Miguel, CFA +55-11-3073-3020 alexandre.miguel@itausecurities.com Mauricio Oreng +55-11-3708-2807 moreng@itaubba.com.br
Francine Martins, CNPI +55-11-3073-3039 francine.martins@itausecurities.com Alexandre Mello +55-11-3073-3031 alexandre.mello@itausecurities.com Luiz Gustavo Cherman +55-11-3708-2713 lgcherman@itaubba.com.br
Renato Salomone, CNPI +55-11-3073-3062 renato.salomone@itausecurities.com
Rafael Vignoli +55-11-3073-3018 rafael.vignoli@itausecurities.com Telecommunications, Media & Technology Technical Analysis
Carlos Constantini, CNPI - Head +55-11-3073-3001 carlos.constantini@itausecurities.com Marcio Lacerda, CNPI - Head +55-11-3073-3005 marcio.lacerda@itausecurities.com
Healthcare + Education Martín Lara +52-55-5262-0673 martin.lara@itausecurities.com Marcello Rossi, CNPI +55-11-3073-3006 marcello.rossi@itausecurities.com
Juliana Rozenbaum, CFA - Sector Head +55-11-3073-3035 juliana.rozenbaum@itausecurities.com Susana Salaru, CNPI +55-11-3073-3009 susana.salaru@itausecurities.com
Marcio Osako, CFA +55-11-3073-3040 marcio.osako@itausecurities.com Tito Ferraz +55-11-3073-3066 tito.ferraz@itausecurities.com
Enrico Grimaldi +55-11-3073-3012 enrico.grimaldi@itausecurities.com

Equity Sales & Trading

Latin America North America Europe, Middle East & Asia

Sales - Latin America
Carlos Maggioli - Head
Cecilia Viriato
Márcia Sadzevicius
Pedro H. Rocha Sauma
Rodrigo Pace
Sales - North America Sales - Europe
+55-11-3073-3300 carlos.maggioli@itausecurities.com Adam Cherry - Head +1-212-710-6766 adam.cherry@itausecurities.com Mark Fenton - Head +44-20-7663-7845 mark.fenton@itausecurities.com
+55-11-3073-3330 cecilia.viriato@itausecurities.com Flavia Stingelin, CFA +1-212-710-6768 flavia.stingelin@itausecurities.com André Luiz Dreicon +44-20-7663-7845 andre.dreicon@itausecurities.com
+55-11-3073-3330 marcia.sadzevicius@itausecurities.com Marcello Spinelli +1-212-710-6767 marcello.spinelli@itausecurities.com Fabio Faraggi +44-20-7663-7839 fabio.faraggi@itausecurities.com
+55-11-3073-3330 pedro.sauma@itausecurities.com Carina Cassab Carreira +1-212-710-6790 carina.carreira@itausecurities.com
+55-11-3073-3330 rodrigo.pace@itausecurities.com

Sales Trading - Latin America Sales Trading - North America Sales - Japan
Eduardo Barone - Head +55-11-3073-3310 eduardo.barone@itausecurities.com Kevin Hard - Head +1-212-710-6780 kevin.hard@itausecurities.com Masayoshi Yazawa +813-3539-3850 masayoshi.yazawa@itausecurities.com
Aureo Bernardo +55-11-3073-3330 aureo.bernardo@itausecurities.com Eric Krall +1-212-710-6780 eric.krall@itausecurities.com Gerson Konishi +813-3539-3852 gerson.konishi@itausecurities.com
Carlos Carvalho Lima +55-11-3073-3310 carlos.carvalho-lima@itausecurities.com Gustavo Rosa +1-212-710-6780 gustavo.rosa@itausecurities.com
Carlos Faria +55-11-3073-3310 carlos.faria@itausecurities.com James Tallarico +1-212-710-6780 james.tallarico@itausecurities.com Sales - Hong Kong
Cristiano Soares +55-11-3073-3330 cristiano.soares@itausecurities.com Brad Marra +1-212-710-6780 brad.marra@itausecurities.com Jack Xu - Head +852-3657-2388 jack.xu@itausecurities.com
Fernando Lasalvia +55-11-3073-3310 fernando.lasalvia@itausecurities.com Caio Galvão +852-3657-2398 caio.galvao@itausecurities.com
Lucas Gonçalves +55-11-3073-3310 lucas.goncalves@itausecurities.com
Sérgio Rocha +55-11-3073-3330 sergio.rocha@itausecurities.com
Thiem Hauenschild +55-11-3073-3310 thiem.von@itausecurities.com

Hedge Funds, Futures, Derivatives & Stock Lending

Carlos Maggioli - Head +55-11-3073-3300 carlos.maggioli@itausecurities.com Futures Desk FX Spot

Thierry Decoene +55-11-3073-3300 thierry.decoene@itausecurities.com Eduardo Barcelos +55-11-3073-3320 eduardo.barcelos@itausecurities.com Manoel Gimenez +55-11-3073-3340 manoel.gimenez-neto@itausecurities.com
Fabio Herdeiro +55-11-3073-3320 fabio.herdeiro@itausecurities.com Haroldo Vasconcellos +55-11-3073-3340 haraldo.vasconcellos@itausecurities.com
Derivatives Alan Eira +55-11-3073-3350 alan.eira@itausecurities.com
Fabiano V. Romano - Head +55-11-3073-3310 fabiano.romano@itausecurities.com Alexandre Rizzo +55-11-3073-3350 alexandre.rizzo@itausecurities.com
Rafael Americo +55-11-3073-3310 rafael.americo@itausecurities.com Celso Azem +55-11-3073-3350 celso.azem@itausecurities.com Stock Lending
Raphael Lie +55-11-3073-3310 raphael.lie@itausecurities.com José Dezene +55-11-3073-3350 jose.dezene@itausecurities.com Marina Leite +55-11-3073-3211 marina.leite@itausecurities.com
Marcio Caires +55-11-3073-3310 marcio.caires@itausecurities.com Vinicius Cobo +55-11-3073-3350 vinicius.cobo@itausecurities.com João Victor Caccese +55-11-3073-3211 joao.caccese@itausecurities.com
Private Banking Desk
Felipe Beltrami - Head +55 11 3073-3273 felipe.beltrami@itausecurities.com Private Banking - Trading Desk
Caio Felipe Zanardo Val +55 11 3073-3292 caio.val@itausecurities.com Nicolas E. Balafas +55 11 3073-3299 nicolas.balafas@itausecurities.com
Private Banking - Sales Edgard Claussen Vilela +55 11 3073-3291 edgard.vilela@itausecurities.com Patrick Campos de Mello +55 11 3073-3292 patrick.mello@itausecurities.com
Lucas Tambellini +55 11 3073-3110 lucas.tambellini@itausecurities.com Guilherme Rudge Simões +55-11-3073-3150 guilherme.simoes@itausecurities.com Patrick Kalim +55-11-3073-3145 patrick.kalim@itausecurities.com
Marcelo Ferri +55 11 3073-3110 marcelo.ferri@itausecurities.com João Gabriel +55-11-3073-3145 joao.silvestre@itausecurities.com Pedro Feres +55-11-3073-3149 pedro.feres@itausecurities.com
Sergio Fonseca Rosa +55 11 3073-3110 sergio.fonseca-rosa@itausecurities.com João Roberto A. de Souza +55 11 3073-3298 joao-afonso.souza@itausecurities.com Ricardo Guntovitch +55-11-3073-3149 ricardo.guntovitch@itausecurities.com
Joseana Requejo Amaral +55 11 3073-3293 joseana.amaral@itausecurities.com Ricardo Julio Costa +55 11 3073-3297 ricardo.costa@itausecurities.com
Julio Pimentel Algodoal Neto +55 11 3073-3210 julio.algodoal@itausecurities.com Robinson Minetto +55 11 3073-3290 robinson.minetto@itausecurities.com
Luis Fernando Kanashiro +55 11 3073-3210 luis.fernando.kanashiro@itausecurities.com Sandra Steffen Brianti +55 11 3073-3297 sandra.brianti@itausecurities.com
Marco Antônio Gomes +55 11 3073-3148 marco.gomes@itausecurities.com Thiago de Freitas Ribeiro +55-11-3073-3290 thiago.freitas-ribeiro@itausecurities.com
Natália Mônaco +55 11 3073-3297 natalia.monaco@itausecurities.com

Fixed Income Alternative Investment Products Itaú Securities' Global Offices

Alexandre Aoude, Global Head of Fixed Income São Paulo SÃO PAULO NEW YORK
Marcelo Fatio - Head +55-11-3073-3505 marcelo.fatio@itausecurities.com Itaú Corretora de Valores S.A Itaú USA Securities Inc.
Fixed Income Research Lizandro Arnoni +55-11-3073-3584 lizandro.arnoni@itausecurities.com Av. Brigadeiro Faria Lima, 3400 - 9º Andar 767 Fifth Avenue, 50th Floor
Ciro Matuo, CNPI - Sector Head +55-11-3073-3049 ciro.matuo@itausecurities.com São Paulo, SP, Brazil, 04538-132 New York, NY 10153
Boanerges Pereira, CNPI +55-11-3073-3050 boanerges.pereira@itausecurities.com New York
Sérgio Vailati, CNPI +55-11-3073-3067 sergio.vailati@itausecurities.com Roger Freitas +1-212-710-6778 roger.freitas@itausecurities.com LONDON DUBAI
Banco Itaú Europe London Branch Itaú Middle-East Securities
Sales - Latin America London 6th Floor - 17 Dominion Street Al Fattan Currency House (DIFC)
Luis Fernando Guido +55-11-3708-8800 lcguido@itaubba.com.br Mark Fenton - Head +44-20-7663-7845 mark.fenton@itausecurities.com London EC2M 2EF 3rd floor – room 305 (P.O. Box: 65703)
Andre Farkas +55-11-3708-8800 afarkas@itaubba.com.br Raquel Franco +44-207-663-7838 raquel.franco@itausecurities.com Dubai, United Arab Emirates
Rogério Cunha +55-11-3708-8800 rmcunha@itaubba.com.br Pedro Rafael +44-207-663-7841 pedro.rafael@itausecurities.com
Felipe Almeida +55-11-3708-8800 fralmeida@itaubba.com.br TOKYO
Vinicius Pinho +55-11-3708-8610 vapinho@itaubba.com.br Dubai Itau Asia Securities Limited Tokyo Branch
Rainer Schwarz - Head + 971 4 440 8350 rainer.schwarz@itausecurities.com NBF Hibiya Bldg. 12F
Sales - North America Fernando Diez Notarnicola + 971 4 440 8355 fernando.notarnicola@itausecurities.com 1-1-7 Uchisaiwai-cho, Chiyoda-ku
Douglas Chen +1 212 710-6782 douglas.chen@itausecurities.com Tokyo, 100-0011, Japan
Mario Bonilla +1 212 710-6745 mario.bonilla@itausecurities.com Hong Kong
Richard Cascais +1 212 710-6766 richard.cascais@itausecurities.com Jack Xu - Head +852-3657-2388 jack.xu@itausecurities.com HONG KONG
Caio Galvão +852-3657-2398 caio.galvao@itausecurities.com Itaú Asia Securities
Sales - Europe Charles Lin +852-3657-2379 charles.lin@itausecurities.com Regulated by the Securities and Futures Commission in Hong Kong
Rodolfo Dejon +44 207 663-7843 rodolfo.dejon@itausecurities.com Eduardo Bernardes +852-3657-2368 eduardo.bernardes@itausecurities.com 29/F, Two International Finance Centre
Rodrigo Malizia +44 207 663-7843 rodrigo.malizia@itausecurities.com 8 Finance Street - Central, Hong Kong
Tokyo
Sales - Asia Kenichi Noguchi - Head +81-3-3539-3847 kenichi.noguchi@itausecurities.com
Gerson Konishi +813-3539-3852 gerson.konishi@itausecurities.com Hiroyuki Shimizu +81-3-3539-3848 hiroyuki.shimizu@itausecurities.com

Itaú´s Complaints Officer (Ouvidoria Corporativa Itaú) may be contacted at

0800 570 0011 (calls from Brazil), on business days, from 9a.m to 6p.m (São Paulo, Brazil time) or P.O. BOX 67.600, Zip Code 03162-971
The information herein is believed to be reliable but Itaú Corretora de Valores S.A. does not warrant its completeness or accuracy. Opinions and estimates constitute our judgment and are subject to change without notice. Banco Itaú S.A. may have a position from time to time. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for purchase or sale of any financial instrument. This report is prepared by Itaú Corr

de Valores S.A. and distributed Itaú Securities, accepts responsibility for its contents accordingly. Any US persons receiving this research and wishing to effect transactions in any security discussed herein should do so only with Analysts who are not CNPI only provide the team with technical support not issuing personal opinio