Operating and Financial Results

4Q07 and 2007

March 4, 2008

2

Highlights

Operating Results

Financial Results

Agenda

Corporate Restructuring

3

Highlights

Operating Results

Financial Results

Agenda

Corporate Restructuring

Highlights

Financial Results

• Net revenue reached R$243.5 million in the 4Q07 and R$879.0 million in 2007, up by 17.9% and

8.5%, respectively, versus 2006

• EBITDA reached R$104.0 million in the 4Q07 and R$379.3 million in 2007, up by 6.0% and 11.3%,

respectively, versus 2006

• Net income reached R$59.4 million in the 4Q07 and R$154.4 million in 2007 up by 3.3% and

23.1%, respectively, versus 2006

Operating Results

• Billed energy came to 874.8 GWh in the 4Q07 and 3,218.8 GWh in 2007, increasing by 8.5% and

10.5%, respectively, over 2006

• In 2007, CEMAR’s DEC and FEC ratios improved by 32.6% and 19.4%, respectively, over 2006

• During the last 12 months, energy losses improved by 1.1 p.p.

5

Highlights

Operating Results

Financial Results

Agenda

Corporate Restructuring

6

Customer Base

• Customer base grew by 6.6% in 2007 against 2006 (89,000 new consumers)

Number of Customers (% per Class)

1,349 1,373 1,398

7.5% 7.2%6.9%

4Q06 1TQ7 2Q07

Customers Annual

Change

1,412

3Q07

6.4%

Number of Customers

1,438

4Q07

6.6%

Residential87%

Industrial1%

Commercial7%

Others5%

Energy Volume

Billed Energy Volume per Segment (MWh)

Energy Load (% Chg. MWh)

Brazil vs. NE vs. CEMAR – 2007 x 2006

Billed Energy (% per Segment) – 2007

Brazil - SIN Northeast CEMAR

4.8% 8.7%4.8%

• Growth of 10.5% in billed energy volume over 2006

• Strong growth in the residential and industrial segments - 16.8% and 12.5%, respectively

Consumption Class (MWh) 4Q06 4Q07 Var. % 2006 2007 Var.%

Residential 327,024 363,501 11.2% 1,202,396 1,353,022 12.5%

Industrial 119,598 127,385 6.5% 396,349 463,058 16.8%

Comercial 159,953 172,179 7.6% 590,311 633,679 7.3%

Others (Ex.own consumption) 199,878 211,782 6.0% 724,185 769,058 6.2%

TOTAL 806,453 874,847 8,5% 2,913,241 3,218,817 10.5%

Others24%

Commercial

20% Industrial14%

Residential42%

8

Energy Balance and Losses

Energy Balance - MWh

Energy Losses (LTM)

4Q06 1Q07 2Q07

29.5%29.8% 29.9%

• CEMAR’s required energy climbed 8.7% in 2007

• Losses fell by 1.1 p.p. in the last 12 months

Results are encouraging, showing the positive impacts of the work

done by the energy recovery team

28.9%

3Q07

28.7%

4Q07

Energy Balance (MWh) 4Q06 4Q07 % Chg. 2006 2007 % Chg.

Required Energy (*) 1,123,620 1,204,443 7.2% 4,160,232 4,520,207 8.7%

Sales (**) 807,809 876,289 8.5% 2,919,643 3,224,116 10.4%

Losses 315,812 327,888 3.8% 1,240,588 1,295,200 4.4%

(*) Includes own generation

(**) Includes energy sales to consumer classes, own consumption and supply to CEPISA

1

DEC and FEC

DEC

Distribution Supplier CEMAR

FEC

Distribution Supplier CEMAR

• DEC and FEC ratios improved substantially during 2007

• CEMAR’S DEC and FEC ratios improved by 32.6% and 19.4%, respectively, in relation to 2006

- 6.2%

38.8

3.8

2006

42.6

24.6

4.1

2007

28.7

20.4

4.2

2006

24.6

15.2

4.6

2007

19.8

- 32.6%- 19,4%

6.77.8

5.9

1.9

0.9

7.6

9.8

6.8

4Q06 1Q07 2Q07

4.6

0.4

3Q07

5.0

6.2

0.9

4Q07

7.10.9

4.3 4.63.9

1.41.2

0.9

5.7 5.9

4.8

4Q06 1Q07 2Q07

3.1

0.4

3.5

3Q07

3.7

2.0

5.7

4Q07

- 1.4%

10

Highlights

Operating Results

Financial Results

Agenda

Corporate Restructuring

11

Net Revenues

Net Revenues (R$ Million)

Net Revenue

Annual Chg.

Adjusted Net Revenue (R$ Million) (Pro-forma: ex. CVA PLPT*)

Adjusted Net Revenue

Annual Chg.

2006

810.1

2007

879.0

8.5%

2006

775.6

2007

878.7

13.3%

* Constitution and amortization of PLPT revenue

4Q06 1Q07 2Q07

206.6 195.1 206.4

7.8%13.6% 12.6%

Net Revenue Annual Chg.

3Q07

233.9

-5.9%

4Q07

243.5

17.9%

206.6 195.1 206.4

7.8% 13.6% 12.6%

4Q06 1Q07 2Q07

Adj. et Revenue Annual Chg.

236.6

3Q07

9.1%

243.5

4Q07

17.9%

• Excluding the impact of regulatory asset “CVA PLPT” ,

annualized net revenue climbed 13.3% between 2006 and 2007

12

Manageable Costs and Expenses

Manageable Costs and Expenses

PMSO (excluding provisions) totaled 14.1% of NOR in 2007, 0.5 p.p. down on 2006.

• Personnel: R$44.7 million in 2007, 19.9% less than in 2006, due to the end of restructuring.

• PDD and Losses represented 1.8% of GOR, slightly higher than in the previous year.

R$ Million 4Q06 4Q07 % Chg. 2006 2007 % Chg.

Personnel 14.3 11.4 -20.1% 55.8 44.7 -19.9%

Material 1.4 2.0 41.7% 4.9 6.2 26.2%

Services 15.2 20.5 34.9% 59.8 71.6 19.8%

Others -2.0 0.8 -139.1% -1.5 1.6 -208.1%

PMSO 28.9 34.7 20.0% 119.1 124.1 4.2%

PMSO (% of Net Revenues) 14.0% 14.2% 0.2 p.p. 14.7% 14.1% -0.5 p.p.

Provisions -7.6 6.4 -184.2% 13.6 29.7 118.5%

Allowance for Doubtful Accounts and Losses 1.5 5.5 278.7% 17.1 22.3 30.4%

% of Gross Revenues 0.5% 1.6% 1.1 p.p. 1.5% 1.8% 0.2 p.p.

Provision for Contingencies and other provisions -9.0 0.9 -109.6% -3.5 7.4 -311.7%

Other Non Recurring Expenses 0.0 0.0 N/A 5.7 0.0 N/A

MANAGEABLE COSTS AND EXPENSES 21.3 41.0 92.3% 138.4 153.8 11.2%

MANAGEABLE COSTS AND EXPENSES (% Net Revenues) 10.3% 16.9% 6.5 p.p. 17.1% 17.5% 0.4 p.p.

13

104.7

EBITDA and EBITDA Margin

EBITDA (R$ million) and EBITDA Margin (% of Net Revenue)

• EBITDA reached R$ 379.3 million in 2007, 11.3% up on 2006

• EBITDA Margin of 42.7% in the 4Q07 and 43.2% in 2007

42.7%

47.5%

39.5%

45.3%

4Q074Q06 1Q07 2Q07

104.098.1 77.0 93.6

6.0%

3Q07

44.8%

EBITDA (R$ million) and EBITDA Margin (Pro-forma: ex. CVA PLPT*)

* R$34.5 million in the 3Q06 and R$0.3 million in the 3Q07

Net Revenue

EBITDA Margin

2006

340.7

2007

379.3

104.4

42.7%47.5%

39.5%

45.3%

4Q074Q06 1Q07 2Q07

104.098.1 77.0 93.6

6.0%

3Q07

44.6%

Net Revenue

EBITDA Margin

2006

306.2

2007

379.0

43.2%42.1%

11.3%

43.1%39.5%

23.8%

14

126.274.4

Profitability

• Improvement on the EBITDA/Customer ratio and stability on the EBITDA/MWh ratio when

comparing 2006 and 2007

4Q074Q06 1Q07 2Q07

72.873.3 56.5 67.3

-0.5%

EBITDA per Customer (R$/Customer)

119.9121.7 106.0 118.2

EBITDA per MWh (R$/MWh)

4Q074Q06 1Q07 2Q073Q07 3Q07

-1.5%

261,8 272,2

20072006

4.0%

117,7 117,8

20072006

1.0%

15

Net Income

47.8 30.9 34.1

23.2%

15.8% 16.5%

4Q06 1Q07 2Q07

Net Income Net Margin

Net Income (R$ million) and Net Margin (%NR)

• Net Income of R$ 154.4 million in 2007, 23.1% up on 2006

40.0

17.1%

3Q07

125.4

15.5%

2006

154.4

17.6%

2007

49.4

4Q07

20.3%

16

Indebtedness

* The FINEL sector index accounts for 20% of the IGP-M

Gross Indebtness – 4Q07

• Gross debt of R$ 784.3 million at the close of the 4Q07, R$ 189.7 million more than in the 4Q06

i) R$28.1 million – RGR/Eletrobras

ii) R$69.1 million – BNB

iii) R$267.3 million – 3rd series of debentures (prepayment of debt)

iv) R$26.4 million –RGR/Eletrobras (PLPT)

v) R$28.5 million – BNDES

vi) R$ 9.6 million – BNB (new headquarters and working capital)

• Debt Profile:

Average cost: 10.86% p.a. (LTM) or 91.9% of the CDI

Average term - 8.1 years

Maturity R$ million% of

TotalReference

Avg. Spread (per

year)

Avg. Due Date

(month/year)

Avg. Maturity

(in years)Part. (%)

Short Term 40.7 5.2% Libor 0.8% Jan-19 10.8 0.6%

Long Term 743.6 94.8% IGP-M 4.0% Dec-23 15.0 17.2%

2009 48.8 6.2% TJLP 4.8% Mar-12 4.0 3.8%

2010 51.9 6.6% Fixed (R$) 9.8% Feb-17 8.5 18.4%

2011 121.1 15.4% RGR 6.3% Nov-16 8.4 12.5%

2012 100.2 12.8% Fixed (US$) 6.7% Sep-20 12.4 0.8%

After 2012 421.6 53.7% FINEL 9.8% Dec-15 7.0 7.8%

TOTAL 784.3 CDI 105.5% May-13 5.2 38.9%

17

Net Debt

784.3

Consolidated Net Debt (R$ million)

Gro

ss

De

bt

Ne

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eg

ula

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As

se

t

Av

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CE

MA

R

Av

aila

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EQ

TL

Ne

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eb

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00

7

196.1

276.0

224.9

Ownership Adjusted Net Debt (R$ million)

Gro

ss

De

bt

Ne

tR

eg

ula

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As

se

t

Av

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ble

CE

MA

R

Av

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EQ

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20

07

508.7

196.1

179.0

76.8

0.6 x

EBITDA 0.2 x

EBITDA

• Maintenance of high liquidity level and low financial leverage

87.1 56.5

18

Consolidated Net Debt

Net Debt (R$ million and Net Debt / EBITDA (LTM)

105.0 176.0 241.7

0.30.5

0.6

4Q06 1Q07 2Q07

Net Debt Net Debt / EBITDA (LTM)

243.6

0.7

3Q07

224.9

4Q07

0.6

• Maintenance of high liquidity level and low financial leverage

Investments

*Excluding direct investments related to the PLPT

CEMAR’s Investments (R$ million)

2Q071Q074Q06

•CEMAR’s investments* totaled R$199.0 million in 2007, 45.3% up on 2006

• Growth in billed energy volume led to a revision of investment expectations

• CAPEX 2008-2009: R$400-R$450 million

31.5

45.0

56.1

Others

Equipment

and Systems

Network Expansion

Network Maintenance

29.6

8.714.3

16.4

18.1

27.1

9.5

1.9

3.3

0.5

2.9

0.4

3Q07

48.4

12.1

31.9

3.3

1.1

4Q07

74.0

18.7

36.7

10.1

8.5

2006

136.9

69.3

42.6

22.0

3.1

2007

53.9

113.8

18.5

12.8

199.0

20

PLPT (Luz Para Todos – Light For All Program)

Direct Investments in the PLPT (R$ million)

4Q06 1Q07 2Q07

51.3 35.4 41.6

Connected Customers

22,490 8,759 7,763

103,067

111,826 119,589

4Q06 1Q07 2Q07

Quarterly Connections Accumulated Connections

32.4 %

3Q07

49.7

9,405

3Q07

128,994

4Q07

67.9

19,332

4Q07

148,326

169.1 194.6

2006 2007

15.0%

21

Dividends

• On February 28, 2008, the Company’s Board of Directors proposed the payment of R$135.9 million

in dividends, to be approved by Equatorial’s General Shareholders’ Meeting on April

• This is equivalent to a payout ratio of 100% of 2007 adjusted net income when included interest

on equity of R$14.7 million

IOE - Gross (R$ 000) $14,670 Div. Proposal (R$ 000) $135,896

IOE - Net (R$ 000) $12,823 # of shares (current) 316,719,690

# of shares (12/27/07) 200,556,740 # of UNITs 105,573,230

# of UNITs 66,852,247 Dividend/UNIT (R$) $1.2872

IOE Net/UNIT (R$) $0.1918

Div. + IOE Net (R$ 000) $148,719

(Div. + IOE)/UNIT (R$) $1.4790

Price (02/29/08) (R$) 18.65

Dividend Yield 7.9%

Payout 100%

22

Highlights

Operating Results

Financial Results

Agenda

Corporate Restructuring

• Increase in the Controlling Interest of Equatorial

• Merger of PCP Energia by Equatorial

• Listing on the Novo Mercado

23

Corporate Restructuring

24

Ownership Strucuture

Abroad

Brazil

Current Structure

Abroad

Brazil

Structure after listing on the Novo Mercado

25.00% ON

25.00% total

65.31% ON

65.25% total

100% total

Equatorial Energia

Holdings LLC

Brasil Energia I LLC

Equatorial Energia

S.A.

RME – Rio Minas

Energia S.A.

CEMARLight S.A.

52.24% ON

52.24% total

100% total

PCP Latin America

Power Fund Limited

35.53% ON

37.11% PN

36.30% total

35.49% ON

2.33% PN

19.27% total

25.00% ON

25.00% total

65.31% ON

65.25% total

100% total

Equatorial Energia

Holdings LLC

Brasil Energia I LLC

Equatorial Energia

S.A.

RME – Rio Minas

Energia S.A.

CEMARLight S.A.

52.24% ON

52.24% total

19.27% ON

19.27% total

36.30% ON

36.30% total

100% total

PCP Latin America

Power Fund Limited

25

Contact

Carlos Piani

CEO

Leonardo Dias

CFO and IRO

Phone 1: +55 98 3217 2198

Phone 2: +55 98 3217-2123

Email: ri@equatorialenergia.com.br

Website: http://www.equatorialenergia.com.br/ir

26

DISCLAIMER

This document may contain prospective statements, which are subject to risks and uncertainties, as they were

based on the expectations of Company’s management and on available information. These prospects include

statements concerning the Company’s current intensions or expectations for our clients; this presentation will also

be available on our website www.equatorialenergia.com.br/ir and also in the IPE system at the Brazilian Security

Exchange Commission – CVM.

Forward-looking statements refer to future events which may or may not occur. Our future financial situation,

operating results, market share and competitive positioning may differ substantially from those expressed or

suggested by said forward-looking statements. Many factors and values that can establish these results are

outside Company’s control or expectation. The reader/investor is prevented not to completely rely on the

information above.

The words “believe", “can", “predict", “estimate", “continue", “anticipate", “intend", “forecast" and similar words, are

intended to identify affirmations. Such estimates refer only to the date in which they were expressed, therefore

Company has no obligation to update said statements.

This presentation does not consist of offering, invitation or request of subscription offer or purchase of any

marketable securities. And, this statement or any other information herein, does not consist of a contract base or

commitment of any kind