1

Conference Call1Q12

Reduction of 1.8% in consumption compared to 1Q11, mainly influenced by the residential class, due to lower temperature in the quarter and in the change criteria of treatment of clients with long-time delinquency.

In march/12, non-technical losses ratio reached 41.3% over the low-voltage market, mainly caused by the change criteria of treatment of clients with long-time delinquency.

OPERATING PERFORMANCE

2

Increase of 4.7% in the net revenue (without construction revenue) that reached R$ 1,766.8 in 1Q12.

Costs of PMSO from Distribution segment reduced 0.5% in the quarter.

EBITDA of R$ 433.8 million in 1T12, decrease of 0.3%, with 24.6% of margin. Considering the effect of regulatory assets and liabilities, EBITDA would be 16.8% higher than 1Q11.

Net Income of R $ 140.1 million in 1Q12, a reduction of 15.8% compared to 1Q11. Considering the effect of regulatory assets and liabilities, net income would be 12.7% higher than 1Q11.

Destaques

Operating cash flow (after interest payments and taxes) of $ 176.0 million in 1Q12, higher than the operating cash generated of $ 10.1 million in 1Q11.

Net debt of R $ 3,439.2 million, with net debt / EBITDA of 2.8x.

RESULTS

CAPITALSTRUCTURE

1T09 1T10 1T11 1T12

ELECTRICITY CONSUMPTION¹

TOTAL MARKET (GWh)

1Note: 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.

3

Energy Consumption Distribution

-1.8%

6,2916,087

27.5ºC 26.9º

C

1Q111Q10

5,5586,180

1Q09

28.3ºC

28.0ºC

+3.7%

1Q12

RESIDENTIAL38%

INDUSTRIAL 7%OTHERS14%

FREE13%

COMMERCIAL28%

1T11 1T12

FREECAPTIVE

RESIDENTIAL INDUSTRIAL COMMERCIAL OTHERS TOTAL

1Q11 1Q12

-1.8%

5,5335,379

6,291

758 801

6,180

-0.7%

890 892

938

47 49

932

+2.1%

1,7301,748

1,899

170 191

1,939

-0.4%

426 401

966

541 561

962

-5.6%

2,4882,348

ELECTRICITY CONSUMPTION (GWh)

TOTAL MARKET – QUARTER

Total Market

4

1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12

mar-11 mar-12

Tx de Arrecadação 12 meses

Total Varejo Grandes Clientes Poder Público

1T11 1T12

set/09' set/10'

5

Collection

COLLECTION RATE12 MONTHS

COLLECTION RATE BY SEGMENTQUARTER

94.0%

95.0%

92.0%

91.5%

98.9% 99.2%

95.1%100.6%

1Q11

1Q12

97.3% 97.7%

Mar/11 Mar/12

PUBLIC SECTORLARGE CLIENTSTOTAL RETAIL

1T11 1T12

1T11 1T12

mar/11 jun/11 set/11 dez/11 mar/12

6

Loss Prevention

INCORPORATIONGWh

1Q121Q11

23.1

50.0 -53.8%

ENERGY RECOVERYGWh

1Q121Q11

14.513.0

LOSS (12 MONTHS)

41.6%

41.3% 40.4

%34.7%

% Non-technical losses/ LV Market

Technical losses GWh

% Non-technical losses / LV Market - Regulatory

5,312 5,247

2,231 2,293 2,335

5,326

7,6277,6197,543 7,582

40.7%

+12.1%Mar/11

Non-technical losses GWh

Jun/11 Dec/11Sep/11

2,328

5,229

41.3%

5,316

2,349

7,665

Mar/12

Reflets the change on

treatment's criteria in the

approach to long term

delinquent customers, based on

Aneel Resolution 414.

1T11 1T12 9M10 9M111T11 1T12 9M10 9M11

Net Revenue

NET REVENUE (R$MN)

7

+3.8%

1,834.7

1,904.3

Generation 5.5%

Distribution 91.8%**

NET REVENUE BY SEGMENT (1Q12)*

Comercialization 2.7%

* Eliminations not considered

** Construction revenue not considered

9M10

NET REVENUE FROM DISTRIBUTION (1Q12)

Commercial 28.5%

Industrial 6.4%

Others (Captive) 11.7% Network Use (TUSD)

8.7%(Free + Concessionaires)

Residential 44.8%

1Q121Q11

Construction RevenueRevenue w/out construction revenue

137.4

1,687.6

1,766.8

147.0

4.7%

1T12

1T11 1T12 9M10 9M11

8

Operating Costs and Expenses

Manageable (distribution): R$ 329.8(22.9%)

Generation and Commercialization: R$ 83.2(5.8%)

Non manageable (distribution): R$ 1,026.2(71.3%)

* Eliminations not considered

DISTRIBUTION MANAGEABLE COSTS (R$MN)

R$ MN 1Q11 1Q12 Var %

PMSO 168.5 167.6 -0.5%

Provisions 60.3 86.5 43.5%

PDD

64.4 61.6 -4.2%

Contingencies

-4.0 24.9 - 

Depreciation 75.9 75.7 -0.2%

Total 304.7 329.8 8.2%

COSTS (R$MM)1Q12

1Q11 1Q12

304.7 329.8

+8.2%

1T11 1T12 9M11 9M12

Não gerenciáveis; 1.026,2; 71,30%

Gerenciáveis; 329,8; 22,92%

Geração e Comercialização;

83,2; 5,78%

1T12

1T11 1T12

EBITDA

CONSOLIDATED EBITDA (R$MN)

9

EBITDA BY SEGMENT*1Q12

Generation 16.9%

(EBITDA Margin: 75.6%)

Commercialization 0.9% (EBITDA Margin: 7.8%)

Distribution 79.3%

(EBITDA Margin: 22.1%)

*Eliminations not considered

433.8434.9

-0.3% 9M10

1Q11 1Q12

10

Net Income

1T

11

EB

ITD

A

Re

sulta

do

Fin

an

ceiro

Imp

osto

s

Ou

tros

1T

12

Lucro Líquido - TrimestreR$ Milhões

1Q11 1Q12EBITDA

Financial Result

Taxes Others

166

140(1)

(31)

8

(2)

NET INCOME1Q12/1Q11

1T12

2012 2013 2014 2015 2016 Após 2016Set/10' Dez/10'3T09 3T10 9M09 9M10

11

Average Term: 3.9 years

AMORTIZATION SCHEDULE* (R$ MILLION)

Indebtedness

379

555

794682

784 806

Nominal CostReal Cost

Mar/12Mar/11

2,134.9

3,439.2

NET DEBT

1.3

2.8

* Considering Hedge

2007 2008 2009 set/10

Custo Real Custo Nominal

2007 2008 2009 set/10

Custo Real Custo Nominal

* Principal only

COST OF DEBT

US$/Euro 0.7%*

CDI/Selic 71.7%

TJLP 27.6%

2009 2010 2011 mar/12

Custo Nominal Custo Real

2011201020092007 2008 2009 set/10

Custo Real Custo Nominal

4.91%

10.15%

5.30%

9.84%

4.88%

11.08%

4.51%

11.01%

Mar/12

Net Debt / EBITDA

2012 2013 2014 2015 2016 After 2016

2008 2009 2010 2011 1T11 1T122008 2009 2010 2011 1T11 1T12

Investments

12

CAPEX BREAKDOWN (R$MM)

1Q12+32.5%

201020092008

563.8546.7

928.6

CAPEX (R$MM)

700.6

20112007 2008 2009 2010 1Q121Q11

142.9148.2

-3.6%

2007 2008 2009 2010e 9M09 9M10

Generation Projects

0.1

Quality Improveme

nt28.1

Generation Maintenanc

e3.4 Others

15.9

Develop. of Distribution System

58.1

Losses Combat

37.3Investments in Electric Assets (Distribution)

124.1

24.1

125.4

17.5453.8

92.9

446.9

116.9

518.8

181.8 758.7

169.9

13

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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s 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.