Conference Call

3Q12

Highlights
Consumption grew 3.5% compared to 3Q11, mainly driven by the commercial segment with a consumption increase of 13.3%. Adjusting by the clients with long-term default the consumption increase was 4.7%; Collection rate (LTM) reached 98.3%,110 bps above the 97.2% of the same period last year; Non-technical losses reached 43.1% over the low-voltage market, due to the change in criteria of clients with long-term default; The quality indicators ELC and EFC (LTM), without purge, decreased from 18.24 to 16.96 and 8.39 to 7.92, respectively, YoY; Year to date, investments in distribution amounted R$ 482.0 million, 5.0% below the same period of the previous year. On November 6, ANEEL approved the average adjustment of 10.77% in the tariffs, starting on November 7th of 2012; Average effect for captive clients of 12.27% and total effect on average tariff of 11.41%.

OPERATIONAL

REGULATORY

Highlights
10.6% increase in Net Revenue (without construction revenue) reaching R$ 1,577.7 million in 3Q12, highlighting the 103.4% increase in the net revenue of the trading company. Strong performance of the generation company, impacted by higher spot prices and higher sale in the Free Procurement Environment;

RESULTS

R$ 269.5 million EBITDA in 3Q12, 12.4% increase. Considering the effect of regulatory assets and liabilities, EBITDA would be R$ 388,2 million, 9.5% higher than 3Q11. Net Income of R$ 84.1 million in 3Q12 in contrast to a loss of R$ 1.6 million recorded in 3Q11. Considering the effect of regulatory assets and liabilities, net income would be R$ 162,5 million, 119.0% higher than 3Q11.

CAPITAL STRUCTURE

Year to date, cash generation totaled R$ 404.1 million, in contrast to the negative variation of R$ 73.0 million for the same period last year; Cash flow position of R$ 1,176.7 million; Net debt of R$ 3,621.6 million, with net debt / EBITDA of 2.8x.

Energy Consumption
Distribution
ELECTRICITY CONSUMPTION TOTAL MARKET (GWh)
+3.2% +3.5%

4,989

5,144

5,299

5,486
OTHERS 15%

FREE 15%

INDUSTRIAL 7%

21.7 C

22.1 C

21.7 C

22.4 C

Srie1

3T09

3T10

3T11

3T12

COMMERCIAL 30%

RESIDENTIAL 33%

3Q09 3T09

3Q10 3T10

3Q11 3T11

3Q12 3T12

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 Basic Network.
1

Total Market
ELECTRICITY CONSUMPTION (GWh) TOTAL MARKET QUARTER
+3.5%

5,299

5,486

740
-4.3% +13.3%

840

1,882

1,801
+1.7%

1,595 155

1,807 180
+4.6%

4,559 894 47 847

4,645

968

984 614 370 3Q12

3T12

854 1,440 1,627 45 810

3T11 3T12 3T11

541 427 3Q11

3T11

3Q12

3T12

3Q11

3T11

3Q11

3Q12

3Q11

3Q12

3T12

3Q11

3T11

3Q12

3T12

RESIDENTIAL

INDUSTRIAL

COMMERCIAL

OTHERS

TOTAL

CAPTIVE

FREE

Collection

COLLECTION RATE BY SEGMENT QUARTER COLLECTION RATE 12 MONTHS

97.7% 97.8 % 96.3% 102.2 99.7 % % 106.2 % 99.8% 97.2%

93.0 %

98.3%

TOTAL Total

RETAIL Varejo

LARGE CLIENTS Grandes Clientes

3T12

PUBLIC SECTOR Poder Pblico

s set/09' et-11 Sep/11

s et-12 set/10' Sep/12

3Q13T11 1

3Q1 2

Loss Prevention
LOSS (12 MONTHS)
43.1% 41.2 % 42.2 % 33.8% 7,839 8,047
Reflets the change criteria to in on the term

ENERGY RECOVERY GWh

134.3
-31.0%

40.7 % 7,627

40.4 % 7,582

92.8

treatment's

7,665

approach

long

delinquent customers, based on

5,229

5,247

5,316

5,457

5,615

Aneel Resolution 414.

9M11

1S11

1S12 9M12

2,328

2,335

2,349

2,381

2,432

INCORPORATION GWh
+20.2%

Sep/11 jun/11

Dec/11 set/11

Mar/11 dez/11

Jun/11 mar/12

Sep/12 jun/12

90.3 75.1

Non-technical losses GWh % Non-technical losses/ LV Market

Technical losses GWh % Non-technical losses / LV Market Regulatory

9M11 1S11

9M12 1S12

Net Revenue
NET REVENUE BY SEGMENT (3Q12)*

NET REVENUE (R$MN)

Generation 6.8%

Comercialization
5.3%

Distribution
87.9%** +6.2%

+5.5%

5,129. 7 556.9

5,450. 2 470.0

1,657. 1 230.6 1,426. 5

2T11 3Q11

1,748. 0 170.3
10.6%

Eliminations not considered

8.9%

1,577. 7
2T12 3Q12

4,572. 8

4,980. 2

* Construction revenue not NET REVENUE FROM DISTRIBUTION (3Q12) considered

Others (Captive)
13.1%

Network Use (TUSD)

10.3% (Free + Concessionaires)

1S11 9M11

1S12 9M12

Industrial
7.6%

Construction Revenue Revenue w/out construction revenue

Commercial
30.1%

Residential
38.9%

Operating Costs and Expenses

DISTRIBUTION MANAGEABLE COSTS (R$MN) COSTS (R$MN)* 3Q12
-4.0% -2.3%

974.0 Manageable (distribution): R$

No gerenciveis; 1.053,0; 71,18% Non manageable (distribution): R$ 1,003.1 (70.1%)

951.8

300.2 (21.0%)

2T12

312.5

300.2

Gerenciveis; 321,8; 21,75%

2T11 3Q11 2T12 3Q12 1S11 9M11 1S12 9M12

Gerao e Com ercializao ; 104,5; 7,07%

Generation and Commercialization: R$

127.4 (8.9%) Eliminations not considered PMSO

R$ MN

3Q11 149.0 83.0

72.2 10.8

3Q12 178.5 52.3

39.3 13.0

Var % 19.8% -36.9%

-45,5% 20,4%

9M11 496.9 242.6

216.0 26.6

9M12 516.0 222.9

173.2 49.7

Var % 3.8% -8.1%

-19.8% 87.1%

Provisions
PCLD Contingencies

Depreciation Total

80.6 312.5

69.3 300.2

-14.0% -4.0%

234.5 974.0

212.9 951.8

-9.2% -2.3%

EBITDA
CONSOLIDATED EBITDA (R$MN)
+4.8%

EBITDA BY SEGMENT* 3Q12

915.5

959,1

+12.4%

(EBITDA 166,2; 63,68% Margin: 12.9%)

Distribution 67.9% Distribuio ;

2T12

Generation 29.5% Gerao; 87,2;

(EBITDA Margin: 33,41% 72.1%)

239.8

269.5

Com ercializao Commercialization ; 7,6; 2,91% 2.6%

(EBITDA Margin: 8.1%)

2T11 3Q11

2T12 3Q12

1S11 9M11

1S12 9M12

Eliminations not considered

10

EBITDA
EBITDA 3Q11 / 3Q12 (R$ MN)

+9.3%

+12.5%

151 355 115 240 30 (110) (41) 269

119

388

EBITDA Ativos e EBITDA Ajustado Passivos 2T11 Regulatory EBITD Adjusted 2T11 Regulatrios

Receita Lquida

EBITDA Assets and 3Q11 Liabilities

A3Q11

Net Reven ue

Managabl e Costs

Custos No Custos Gerenciveis Gerenciveis NonManagabl (PMSO)

Provises

e Costs (PMSO)

Provisio ns

EBITD A3Q12 Assets and EBITDA Liabilities 3Q12

EBITDA 2T12

Ativos e EBITDA Passivos Ajustado Regulatory Regulatrios Adjusted 2T12

11

Net Income
Lucro Lquido Lucro Lquido Ajustado (R$ e MN) 3T11/3T12 - R$ Milhes

NET INCOME 3Q11 / 3Q12

+119.0%

78 78
-12.3%

162

162

74 74

76 76

Inc million R$ 86

rease

24

24

84

84

27 27 30 30 (2)

4 4

LL Ajustado 3T11

Adjuste d Net Income 3Q11

Ativos e passivos Regulato Regulatrios

10 3T11

EBITDA

ry Assets and Liabilitie s

3Q11

EBITD A

Financial Result

Resultado Financeiro

Impostos

Outros

3T12

Taxes

Other s

3Q12

ry Assets and Liabilitie s

Ativos e passivos Regulato Regulatrios

Adjuste d Net Income 3Q12

LL Ajustado 3T12

12

Indebtedness
NET DEBT
3,621.6 3,143.5 1,477 832 2.5 2.8 198
jan/12 Sep/12 9M10

AMORTIZATION SCHEDULE* (R$ MN) Average Term: 3.7 years

855 754

582

3T10

jan/11 Sep/11 9M09

2012 2012
* Principal only

2012

2013 2013

2013

2014 2014

2014

2015 2015

2015

2016 2016

2016

Net Debt / EBITDA

After Aps 2016 2016

Aps 2016

COST OF DEBT
9.84% 11.08% 11.01% 8.54% CDI/Selic 74.2%

Other s 2,0% 1T12

TJLP 23.5% US$/Euro 0.4%*

5.30%

2007

2007 2008
2009 2009

4.87%

20082009
2011 2011 2009

4.51%

3.09%

2009 set/10

set/10
* Considering Hedge

2007

2010 2010 2008

Custo Nominal

Real Cost Custo Real Custo Real

Custo Nom inal Custo Nominal

Custo Nominal
Custo Real
13

jun/12 Sep/1 set/10 2 Nominal Cost

Custo Real

Investments
CAPEX (R$MN)
+32.5% 928.6

CAPEX BREAKDOWN (R$MN) 9M12

Generation Maintenanc e Generation 11.5 Projects 1.7 Quality Improveme nt 97.9 Losses Combat 156.4

700.6 546.7 92.9 453.8 563.8 116.9 181.8 518.8 446.9

-10.9%

169.9 592.7 758.7 85.1 527.8 45.8

Others 59.6 Develop. of Distributio n System 200.7

507.6

482.0

2008 2008

2009 2009

2010 2010

2011 2011

9M11 9M11

9M12 9M12

Investments in Electric Assets (Distribution)

14

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.

15