Conference Call4Q06 Earnings Results

March 01, 2007

António Martins da CostaCEO

Antonio José SellareCFO

Vasco BarcellosInvestor Relations Officer

Disclaimer

2

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.

9.3% 9.3% 9.0% 9.0% 8.9%

3.8% 3.9% 3.8% 4.1% 4.0%

Dec

2005

Mar

2006

Jun

2006

Sep

2006

Dec

2006

Technical Commercial

Distribution

170242

801 829

4Q05 4Q06 2005 2006

Energy Distributed Volume (GWh)

EBITDA (R$ MM)

42.1%

3.5%

Losses *

12.9%13.1%12.8%13.1%

* Average of the last 12 months

• Distributed volume: strong recuperation in the 4Q06

• Higher participation of free customers

• Non-recurring effects in 2006 and 2005

• Efficiency programs in progress

3

3,058 3,210

12,315 12,7631,949 2,014

8,0607,639

814772

3,1263,108

4Q05 4Q06 2005 2006

Bandeirante Escelsa Enersul

5,779 6,038

23,061 23,948

4.5%

3.8%

13.2%

• Peixe Angical and Mascarenhas’ 4th Engine: full capacity in 4Q06

•PCH São João’s operational license in feb/07

• Growth strategy: plants’ repowering, new energyauctions, acquisitions and viability studies

Generation

27

88 101

273

4Q05 4Q06 2005 2006

659

1,494

2,756

3,929

4Q05 4Q06 2005 2006

42.6%

126.6%

Energy Produced Volume (GWh)

EBITDA (R$ MM)

227.3%

170.3%

Generation Installed Capacity (MW)

UHE Peixe Angical UHE Mascarenhas

4

UHE PeixeAngical

4º Engine.Masc.

PCHSta.Fé

516

452 50 25 29 1,072

Concluded Projects Projects in Progress

PCHS. João

Current

2009ExpectedStart-up

1,043

2005 Total

8

-32

54

3

4Q05 4Q06 2005 2006

Commercialization

1,101 1,349

3,8125,509

590 222

1,193

2,567

4Q05 4Q06 2005 2006

Others ENBR Group's companies

46

52

4Q05 4Q06

Energy Commercialized Volume (GWh)

Number of Customers

13.0%

EBITDA (R$ MM)

• Lower self-dealing: offset by the growth of free market

• Contract renewal: opportunity to increase customer base

• Extraordinary effect of R$ 40.2 million in 4Q06

5

-93.7%

-7.1%

5.1%

6,379 6,702

1,5711,691

3.0x

1.9x2.3x

2.0x 1.8x

Dec/04 Dec/05 Jun/06 Sep/06 Dec/06

4Q05 4Q06 2005 2006

Distribution Generation Commercialization

Financial Performance

155.3 154.8

439394

4Q05 4Q06 2005 2006

Net Revenues (R$ MM)

Net Income (R$ MM)

-0.4%

EBITDA (R$ MM)

Net Debt/EBITDA *

-10.3%

* EBITDA of the last 12 months

6

5.5%

83%

19.1%

4Q05 4Q06 2005 2006

Distribution Generation Commercialization

17.6%

48.6%

86%

10%

82%

87%

8%

9%

81%

4% 9%10%

4%10%

83%13%4%

81%

29%

84%-10%

6%

75%

10%24,7%

0.3%913

1,074

195290

4,3234,561

1,041 1,240

MAIN 2006 IMPACTS

. RP: - R$ 51,6 MM

. AMPLA provision - R$ 40,2

KEY 2005 IMPACTS

. Impairment + R$ 89,9 MM

. FX + R$ 60,4 MM

Nota: 1 Exclui depreciação e amortização

R$ million 2006 2005 Var.%

Personnel 339 268 26.5%

Material 37 36 1.1%

Third-party 297 239 24.0%

Provisions 107 69 53.9%

Others 96 107 -10.7%

Total 875 720 21.5%

MAIN VARIATIONS (R$ million)

. RP: R$ 51.6

. AMPLA provision: R$ 40.2

. Managerial initiatives: R$ 28.6

. Regulatory demand: R$ 15.6

7

Manageable Expenses ajusted by

extraordinary items would have

increased by 8.8%.

Costs and Expenses Breakdown1 –4Q06

Costs and Manageable Expenses Breakdown

Operating Expenditures

Non-manageable

costs

R$2,613 million

(75%)

Manageable

Costs

R$875 million

(25%)

R$3,488 million

Indebtedness and Investment

Net Debt (R$ MM)Gross Debt Index Breakdown(%)

Dec/06

Universalization Programs

- includes “Light for All” (LFA) -

3%

5%

60%

US$

Fixed Rate

TJLP

Floating Rates

32%

2006 (E) 2006 (R)

177160

8

* Does not include interests capitalization and/or new projects

* Includes Selic, CDI, IGP-M and INPC

*

Investment* – does not include Light for All

(R$ MM)

Distribution Generation

2006 (E) 2006 (R)

577

217

365

212

375

5922007 Investments* (estimated)

Distribution: R$ 466 million

Generation: R$ 192 million

Universalization: R$ 105 million

TOTAL: R$ 763 million

(673)

(606)

1,997

3,159

1.879

Gross DebtDec/06

(-) Cashand

MarktableSecurities

(-)RegulatoryAssets

Net DebtDec/06

Net DebtSep/06

2,414,8

2,0

17,2

4,0

24,8

4,2

27,7

5,2

35,6

8,4

60,0

Jun/06 Accomplished

till Sep/06

Dec/06 Accomplished

till Dec/06

Jun/07 Dec/07

Indirect Personnel Cost (Estimated) Direct Personnel Cost (Estimated)

Indirect Personnel Cost (Accomplished) Direct Personnel Cost (Accomplished)

Vanguard Project

RP - Trend in the capture of accumulatedannualized savings (R$MM/year)*

Information Technology Projects

2005 2006 2007 2008

ScheduleSchedule

SIT-Brasil

Integration

9

* 2006 Figures

456 502 462

776654 585

890762

1,060943

1,071

1,287

Bandeirante Escelsa Enersul

1998 2001 2005 2006

Productivity (Client/Employee)

182% 111%104%

17.2 19.228.8 31.9

40.8

68.4

90

100

110

120

130

140

150

160

170

180

190

7/12/2005 8/22/2005 10/3/2005 11/16/2005 12/27/2005 2/8/2006 3/23/2006 5/8/2006 6/19/2006 7/28/2006 9/8/2006 10/20/2006 12/5/2006

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Volume R$ ENBR3 ENBR3 Ibovespa IEE IBX

Awards and Recognitions

2005 Best Listed Company

HonorableMention

1st PlaceListed Company

Finalist

+83%

+80%

+74%

+83%

VolumeR$ Mil

Updated until December 31, 2006

10

Member in2006

Market Capitalization: R$5.4 billion

Main Achievements in 2006

11

Duplication of the generation installed capacity and feasibility studies for new hydro power plants

1st Part of Vanguarda Project concluded and development of the Losses Reduction Program

Indebtedness: debt extension and reduction of the average cost

Adjustment of the customer service network at the three distributors with unification of the geo-processing system

Sustainability: BOVESPA’s ISE admission and adhesion to the Global Compact

Governance: important recognitions and creation of the CorporateGovernance and Sustainability Committee

Conference Call

4Q06 Earnings Results

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