EDP Energias do Brasil

Investor Presentation

- 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.

Disclaimer

2

Corporate profile: integrated private electric company with operations in distribution, generation and trading

3

Energias do Brasil

Free Float

(1) In 2013; (2) Source: CCEE; (3) Source: Aneel. (4) In 2013. Source: Companies.

largest private trading company (sales volume)

• 9% of market share(1, 2)

largest private distribution group (energy distributed)(4)

• 3.1 million customers supplied by two distribution

companies

largest private generation group (installed capacity)(1,3)

• 2.2 GW of installed capacity and 1.4 Avg.GW of assured energy

• 1.5 GW under construction (proportional stake: 635 MW)

• Long term concessions and PPAs

• Partnership with local and foreign companies

16% of Group's EBITDA1

Ge

ne

rati

on

51% 49%

EDP

Energias de Portugal

3rd3rd

6th6th

4th4th

Corporate profile: operation in 11 Brazilian States

� Present in 10 States

� HPP: 76%, SHPP: 6%, TPP: 16% and WPP: 2%

Hydro power plant

Thermal power plantWind power plant

São Manoel700 MW (33,3%)

CENAEEL14 MW

(45%)

Energest67 MW

Elebrás70 MW

(45%)

In operation

Under construction/committed

� 28 cities in the state of São Paulo

� 1.7 million customers

� Concession until 2028

EDP Bandeirante

EDP Escelsa

� 70 cities in the state of Espírito Santo

� 1.4 million customers

� Concession until 2025

Sto. Antônio do Jari 373 MW (50%)

Cachoeira Caldeirão

219 MW (50%)

Aventura116 MW (45%)Baixa doFeijão

120 MW (45%)

Pecém I 720 MW (50%)

Lajeado903 MW (73%)

Enerpeixe499 MW (60%)

Energest329 MW

(1) In 2013.

Generation(1) Distribution(1)

4

EDP: More than 17 years in Brazil

InvestmentGrade

Energy shortage in Brazil

Emerging markets crisis

Lula’s first mandate election

Russian crisis

New Model of Brazilian Power Sector

Asian crisis

Economic worldwide meltdown

European credit crisis

Subprimecrisis

Internet bubble

Argentina crisis

Real Devaluation

Investment in Lajeado

Acquisition of Bandeirante

Acquisition of Iven(Escelsa and Enersul)

Acquisition of Peixe Angical(partnership with Furnas)

A-5 Auction(TPP Pecém I)

Asset Swap (Enersul for Lajeado)

Investment in wind power generation

EDP Energias do Brasil’s IPO on BM&FBOVESPA Follow on

offering

Acquisition of HPP Jari

Sale of Evrecy

A-5 Auction (CachoeiraCaldeirão)

TPP Pecém I start up (unit I)

ENBR3 onIbovespa

index

TPP Pecém I start up (unit II)

Partnership with CTG

A-5 Auction (HPP São Manoel)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Company

Macro

Follow on offering

HPP Jari start up (unit I and II)

DilmaRousseff’sreelection

Sale of 50% of HPP Jari and HPP Cachoeira Caldeirão to CTG

EMBI Brazil (JP Morgan) 5

1) Energy Scenario:

• Low hydrology and reservoir levels;

• Average GSF of 84.5%3;

• Average PLD of R$ 677/MWh1;

• ACR Account/CDE contributions to distributors2:

R$ 273.8 million in 3Q14 and R$ 864.6 million on 9M14;

• EDP Escelsa tariff readjustment in August/2014 (26.54%)

and EDP Bandeirante in October/2014 (22,34%).

2) Cost control and cash management

• Excluding the impact of the sale of property in 3Q13 (R$

52.6 million), opex decreased 15.5%. In the 9M14 the

opex fallen 7.4%

• Funding of R$ 1,8 billion to reinforce cashflow and

investments in 9M14;

• Net debt/EBITDA: 1.4x.

3) Growth

• HPP Jari: startup of GU I 3.5 months ahead of schedule

and GU II 1.5 month ahead of schedule. 98.1%

accomplished until September 2014;

• HPP Cachoeira Caldeirão: 50.5% accomplished until

3Q14;

• HPP São Manoel: construction began in August 2014.

6

Evolution of 2014 priorities: Highlights

1) Source: CCEE. 2) Source: Aneel. 3) Source: CCEE.

2014 Priorities

Energy Scenario

Cost control and cash

management

GrowthCustomer

Satisfaction

Thermal Power Plant HPP Pecém I

1

3.4.

5. 2.

4) Customer satisfaction

• Maintenance of quality indicators (DEC and FEC) on both

discos and below regulatory level;

• Client satisfaction above 80% on both discos according to

the ABRADEE Prize (2014)1;

• Incentive to quality improvement (X Factor’s “q”

component):

• EDP Bandeirante tariff readjustment (Xq: -0.64%);

• EDP Escelsa tariff readjustment : (Xq: -0.33%).

5) TPP Pecém I

• Aneel approved pleading suspending the calculation of

downtime costs on an hourly basis and determined the

calculation to be based on a 60-month rolling average

with R$ 250 Million of cash accounted2;

• Sudden outage of GU I due to a stator burnout. Repair in

progress and commercial operation return expected until

year end;

• GU II reached an average availability index of 88.3% in

3Q14. In October reached 98% and September 97% .

7

Evolution of 2014 priorities: Highlights

1) Satisfaction level of perceived quality. 2) 100% of project.

2014 Priorities

Energy Scenario

Cost control and cash

management

GrowthCustomer

Satisfaction

Thermal Power Plant

1

5.

3.4.

2.

8,0

12,0

15,5

2012 (average) 2013 (average) 9M14 (average)

Energy Scenario: low hydrology and reservoir levels

8

Rainfall / Natural energy inflow1 | Southeast (2014 vs. 2013)

Average GW

GSF (Generation Scalling Factor) | 2014 (%)

National Integrated System (SIN)2

PLD (Southeast submarket)2 | (R$/MWh)

378,2

822,8 807,0

412,7

592,5

709,5729,0

776,9

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Thermal Dispatch1 | National Integrated System (SIN)

(Average GW)

1) Source: ONS 2) Source: CCEE 3)Preliminary

96,3%98,3%

93,8%

98,7%

93,6%

89,1%

86,1%

82,1%

85,3% 86,5%3

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

0

20

40

60

80

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2013 2014

Increase in Non-Manageable Expenditures

Generation

Non-Manageable Expenditures (R$ million) | GSF

EDP Energias do Brasil

57,0 63,9

198,6

319,5

1Q14 2Q14 3Q14 9M14

Distribution | Non-Manageable Expenditures1 (R$ million)

EDP Bandeirante

438,8 365,5

1.501,91.224,8

73,4

277,1

3Q14 9M14

Energy purchased to resell

ACR Account/CDE Contributions

Net Energy purchased after

contributions

375,5175,0

1.462,8

875,4200,5

587,4

3Q14 9M14

Distribuição | Gastos não gerenciáveis (R$ milhões)

EDP Escelsa

1) Considers energy purchased to resell in national currency. Do not consider Itaipu and charges. 9

-25.0%

144

170

128

165

675 681593

710 729777

0

100

200

300

400

500

600

700

800

900

1Q14 2Q14 Jul Aug Sep Oct

EDP Bandeirante EDP Escelsa Spot Price

52,2 47,7

36,1 29,0

97,5 103,6

9,2 9,4

103,5 109,4

9M13 9M14

Others Provision Third-party

Services

Material Personnel

+5.6%

+1.5%

+6.2%

-19.8%-8.7%

Average Coverage Tariff| (R$)

OPEX Consolidated (R$ million)

9M14 vs. 9M131

EDP Bandeirante

9M14

(R$ thousand)

EDP

Bandeirante

EDP

Escelsa

Distribution

EBITDA (IFRS) 85,801 146,909 232,710

Change on net

Regulatory Assets

and Liabilities

182,465 86,771 269,236

EBITDA + Net

Regulatory Assets

and Liabilities

268,266 233,680 501,946

EBITDA | Regulatory Assets and Liabilties adjust

EDP Escelsa

1) Others: Consider EDP Escelsa’s COC sale on 3Q13 for R$ 52.6 million

30,7 23,1

56,6 23,8

101,799,3

8,38,4

92,786,7

9M13 9M14

Others Provision Third-party

Services

Material Personnel

-6.5%

+0.8%

-2.3%

-57.9%

Increase in Regulatory Asset due to the distributor’s average tariff coverage lower than the spot price

298,9298,6

+0.1%-16.8%

241,3

290,0

10

Cost control shown in OPEX reduction

11

588,6

82,112,4

540,2

83,011,4

Distribution Generation Commercialization

9M13 9M14

Opex | by business segments (R$ million)

9M14 vs. 9M13

Opex Consolidated (R$ million)

9M14 vs. 9M131

-8.3%

+1.0%% -8.6%

Opex (R$ million)

3T13 vs. 3T14

1) Others: Considers gain/loss on asset sale.

106,8 100,7

95,5 45,3

276,8 271,9

22,421,7

262,6268,0

9M13 9M14Others Provision Third-party

Services

Material Personnel

+2.0%

-2.9%

-1.8%

-52.5%

-5.7%

-7.4%764.1

707.6

207,8

260,4

220,1

52,6 - 9,5 -0,91,0

-17,8

-13,1

Opex 3Q13 Asset sale Adjusted

Opex 3Q13

Personnel Material Third-party

services

Provisions Others Opex 3Q14

+5.9%

-15.9%

Funding of R$ 1.2 billion to reinforce cashflow

12

2.335 2.008

924 1.398

Dec/13 Sep/14

Net Debt Cash

+4.5%

+51.2%

-14.0%

2.453 2.335 2.4512.031 2.008

1,3x1,4x

1,5x

1,2x

1,4x

Sep/13 Dec/13 mar/14 jun/14 Sep/14

Net Debt Net Debt/EBITDA

Gross

Debt 3,259 3,406

Refinancing/working capital | 2014 (YTD)

Indebtness: Dec/2013 vs. Sep/20141 Net Debt/EBITDA

1) Do not consider debt from HPP Santo Antônio do Jari, HPP Cachoeira Caldeirão, HPP São Manoel and TPP Pecém I (consolidation criteria).

Company Source Date Maturity Comparative Cost* R$ million Effective Cost

Holding Debentures Feb-14 Aug-15 CDI +0,72% 300.0 CDI + 0,72%

EDP Bandeirante Rural Credit Feb-14 Jul-15 CDI +0,12% 98.6 101,15% of CDI

EDP Bandeirante Debentures Apr-14 Apr-19 CDI +1,39% 300.0 CDI + 1,39%

EDP Escelsa Rural Credit Feb-14 Jul-15 CDI +0,12% 110.6 101,15% of CDI

EDP Escelsa Cédula Cambiária May-14 May-18 CDI -0,49% 200.0 85% of CDI + 1,0625%

EDP Escelsa Debentures Aug-14 Aug-20 CDI +1,50% 176.8 CDI + 1,50%

1,186

* cost in CDI + as the base date 09/30/2014

Growth delivery: +2.3GW of capacity from 2005 to 2018

Hydro projects under construction and committed

HPP EDP Brasil Stake(1) Capacity (100%)(MW)

Contracted Energy(Avg. MW)

Capex(e)(R$bn)

Debt/Equity Startup of Commercial Operation

Stº Antôniodo Jari

50% 373 217.7 1.1 67%/33% Jan,2015

Cachoeira Caldeirão 50% 219 129.7 1.2 52%/48% Jan,2017

São Manoel 33% 700 409.5 2.7 68%/32% May,2018

(1) Take into account the proportional consolidation

Installed Capacity Evolution1

(MW)

13

530

2,195 622,257

125 54110 233

52

2,830

2005 2013 GU I HPP Santo

Antônio do Jari

(50%)

3Q14 Gu II and GU III

HPP Santo

Antônio do Jari

(50%)

2015

EOL Baixa do

Feijão (45%)

2016

HPP Cachoeira

Caldeirão (50%)

2017

HPP São

Manoel (33,3%)

2018

EOL Aventura

(45%)

2018

2018

HPP Jari | Startup of GU I 3.5 months ahead of schedule and GU II 1.5 month ahead of schedule

HPP Santo Antônio do Jari1

373.4 MW

217.7 MW average

Startup of commercial operation | GU I:

• Startup of supply to the SIN Aug 26, 2014 (test);

• DCO2 in Sep 17,2014;

• Anticipation of 3.5 months;

Startup of commercial operation | GU II:

• Startup of supply to the SIN Oct 31, 2014 (test);

• DCO2 in Nov 14,2014;

• Anticipation of 1.5 month;

Capex(e): R$ 1.2 billion

93.4% accomplished until Sep/2014

1) 100% of the project. 2) Declaration of Commercial Operation

HPP Jari | GU III in the assembly phase

Powerhouse overview

GU I in

commercial

operation

UG III

Kaplan

Turbine in

the pit

GU II in

commercial

operation

16

HPP Cachoeira Caldeirão | Under construction

Nota: considera 100% do empreendimento. 1) Declaração comercial de operação.

HPP Cachoeira Caldeirão1

219 MW

129.7 MW average

Startup of operation:

Jan/2017(e):

Ongoing activities:

i) Concreting of Powerhouse and

spillway and assembly area; ii)

assembly of

electromechanical equipments;

among others.

Funding:

Short term: bridge-loan:

R$ 648 million

Long term: under negotiation

Capex(e): R$ 1.2 billion

38% accomplished until

September/2014

Spillway overview

161) 100% of the project.

17

HPP São Manoel1

700 MW

409.5 MW average

Recent activities:

• Beginning of main construction site;

• Beginning of earthmoving activities for

cofferdam construction.

Prior activities:

• Signing of the Concession Agreement in

May with 134 days anticipation;

• Obtaining REIDI with 56 days

anticipation;

• Obtaining the declaration of public

utility (construction site) 83 days less

than the due approval date (155 days);

• Issuance of debentures (bridge loan) of

R$ 532 million.

Cofferdam overview

HPP São Manoel | Under construction

1) 100% of the project.

67%81%

95%

62%

98%

54%

82%

76%

88% 91%

82%

80%

84%

99%

77%

90% 97% 98%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

GU I GU II

18

TPP Pecém I: UG II availability index reaches 98% in Oct/2014 and the failure rate shows a constant reduction

Availability Index (%)| by generation unit

2014

Failure rate (LTM) | by generation unit

2014

82% 82% 80% 83%

49%

71%

1Q14 2Q14 Jul Aug Sep 3Q14

72

70

5954

44 4339

30 28 27

71

64

64 62 5954

4641

37 34

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

GU I GU II

Availability Index (%)1 | consolidated Failure Rate(LTM) | consolidated

2014

7266

6259

5348

43

3634

31

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

GU I outage since August

Customer Satisfaction: quality indexes below regulatory goal (incentive to quality improvement)

19

DEC Evolution (hours)

8,08 7,54 7,41 7,30

9,67 9,81 9,61 9,94

4Q13 1Q14 2Q14 3Q14

EDP Bandeirante EDP Escelsa

5,51 5,55 5,33 5,175,78 6,22 6,10 6,35

4Q13 1Q14 2Q14 3Q14

EDP Bandeirante EDP Escelsa

Incentive to quality improvement (X Factor’s “q” component):

• EDP Bandeirante tariff readjustment (Xq: -0.64%)

• EDP Escelsa tariff readjustment : (Xq: -0.33%)

FEC Evolution (times) Low tension non-technical losses | EDP Escelsa

Low tension non-technical losses | EDP Bandeirante

20,3% 20,2%

16,1% 15,3%13,9% 13,1%19,9%

18,0%16,1%

14,6%13,2%

11,8% 11,8%10,4%

2009 2010 2011 2012 2013 3Q14 2014 2015

Actual Regulatory level

19,6%18,1%

17,1%18,4%

15,9%17,4%

17,2%15,5%

13,8%12,1%

10,5%9,3% 9,3%

7,9%

2009 2010 2011 2012 2013 3Q14 2014 2015

Maytê Souza Dantas de Albuquerque

Marília Barbosa Nogueira

Thiago Piffer

Anna Luisa Rego Bacellar

Rodrigo Tassone

E-mail: ri@edpbr.com.br

Telephone: +55 (11) 2185-5907

www.edpbr.com.br/ri