1. IFRS: adaptation of international accounting
standards in EDP Energias do Brasil Group
São Paulo, January 17, 2011
Rio de Janeiro, January 18, 2011

2. Disclaimer
This presentation may include statements that represent expectations regarding future events or results
according to the Brazilian and international regulations on securities. These statements are based on
certain presumptions and analyses made by the Company according to its experience and the
economic environment as well as market conditions and expected future events, many of which are
beyond the Company’s control. Important factors that may lead to significant differences between
actual results and the statements of expectations regarding future events or results include the
Company’s business strategy, Brazilian and international economic conditions, technology, financial
strategy, developments of the public services industry, hydrological conditions, conditions of the financial
market, uncertainty regarding the results of its future operations, plans, goals, expectations and
intentions, among others. Due to these factors, the Company’s actual results may differ significantly from
those indicated or implicit in the statements of expectations regarding future events or results.
The information and opinions contained here should not be understood as a recommendation for
potential investors and no investment decision should be based on the veracity, up to date or
completeness of these opinions or information. None of the Company’s advisors or parties related
thereto or their representatives will have any responsibility for any losses that may arise from the use or
from the content of this presentation.
This material includes statements on future events subject to risks and uncertainties, which are based on
the current expectations and forecasts involving future events and trends that may affect Company
business. These statements include projections of economic growth and demand and the supply of
power, besides information on competitive position, regulatory environment, potential growth
opportunities and other subjects. Numerous factors may adversely affect the estimates and
presumptions on which these statements are based.

3. Overview
• IFRS is the world standard for accounting pratices, with full application in the adherent countries
since 2005
• Based on na approach on essence over form and judgmental nature of the accounting criteria
• In Brazil it begins in 2005 through Comitê de Pronunciamentos Contábeis, whose objective is the
issuance of technical pronouncements that lead to the convergence of local accounting into
international standards
• 15 Pronouncements and 2 Guidelines applicable in 2008, were published in 2007/2008
• 27 Pronouncements, 10 Interpretations and 1 Guideline were published in 2009 for application in
2010, with retroactive effect to January 1, 2009
• EDP Energias do Brasil has reported in IFRS basis to its controlling shareholder since 2005
Nota: o gráfico ilustra o desempenho do risco-país - EMBI (JP Morgan)
2

4. Important Messages
The International Standards CPCs/IFRS does not affect:
The relationship with clients;
The Companies’ strategy;
The Companies’ operational management;
The Companies’ financial management;
The ability to generate cash flow;

5. Impact of the CPCs by business area
Energias do Brasil Group
Commercializatio
Generation Transmission Distribution Others
n
CPC 27 CPC 27
CPCs with an impact on
the financial statements
ICPC 01 / CPC 20 / CPC 17
and notes to the
statements
CPC 04
CPC 06 / CPC 25 / CPC 26/ CPC 32 / CPC 33 / ICPC 03 / ICPC 08 / ICPC 09
CPC 38/39/40/ CPC 38/39/40/
OCPC 03 OCPC 03
CPC 15
4

6. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)

7. CPC 15 – Business Combination (IFRS 3) and ICPC 09
A Business Combination is an operation involving the acquisition of companies or other event in which
the acquirer obtains control of one or more businesses.
Parent Company Parent Company
Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary
New acquisition
Spin-offs Mergers/Takeovers
This pronouncement applies to all the Business Combinations occurring as of January 1, 2009. The
interpretation allows it to be applied to operations prior to this date if this expresses its business better.
6

8. CPC 15 – Business Combination (IFRS 3) and ICPC 09
Effects on the parent company / Consolidated
Effects on the subsidiary balance sheet
PPA* with
Absorption Recording of Recording appraisal
of the assets and Appraisal of the initial reports of Appraisal
individual liabilities at proforma of acquisition property, proforma of
accounts of
the + fair value
previously + property,
plant and
cost and
goodwill /
+ plant and
equipment
+ property,
plant and
acquired not equipment negative and equipment
company considered goodwill intangible
assets (*)
The recognized goodwill will be amortized over the concession period, since, according to ICPC 09, if it is
possible to obtain, in an objective and reliable manner, the part of the amount of the price paid that is
not allocable to the other assets and liabilities or to the concession right, it can also be amortized over the
remaining period of the concession right, on an individual basis. However, it cannot be amortized on a
consolidated basis.
Negative goodwill should be recognized immediately through income.

9. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)

10. CPC 20 – Borrowing Costs (IAS 23)
Before CPC20 After CPC20
Interest Capitalization Allowed Mandatory
Stamped Loans
Unstamped Loans
Generation
Distribution
Impact on the companies from the Group All*
Transmission
Others
* When the conditions for interest capitalization are fulfilled (having an eligible asset and borrowing costs
incurred concomitantly)
N.B. : before the application of CPC 20, in Distribution and Transmission it was not possible to apply the
capitalization of financial charges due to the delay in the reception of the stamped loans.

11. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)

12. CPC 25 - Provisions, Contingent Liabilities and Contingent
Assets
It will
Present
Uncertain probably
Obligation
as to term generate
resulting PROVISION
and future
from past
amount economic
events
benefits
Type of obligation Recording Publication
Present obligation that probably requires payments
Possible obligation or present obligation that might require, but will probably
not require future payments
There is a possible obligation or present obligation where the likelihood of
payments is remote

13. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations l (IFRIC 4, SIC 15 and SIC 27)

14. CPC 27 and ICPC 10 Property, Plant
& Equipment (IAS 16)
Objective: to establish the accounting treatment for property, plant and equipment, so that the users of
financial statements can discern information on the entity’s investment in its property, plant and
equipment, as well as its changes.
Main points to be considered in accounting: the recognition of assets; the determination of their book
values; rates, depreciation values and losses due to devaluation to be recognized in relation to these
assets.
Initial Adoption
Adjustments of
Property, Plant and Deemed Cost
Equipment
Administration Foreign
The deemed cost should be used if it is verified that the
Costs Exchange Debt
value of the asset is unadjusted, i.e. either much higher, or
Variation
visibly lower.
This pronouncement applies to all the property, plant and equipment recorded at the companies
included in the scope of the pronouncement, as from January 1, 2009, although the effect is always with
a basis on retroaction to the origin of the creation or acquisition of the asset.
13

15. CPC 27 and ICPC 10 Property, Plant and
Equipment (IAS 16)
Effects on the Companies included in the Scope Effects on the parent company/Consolidated
Balance Sheet
Write-off of the Companies Write-off in
Sums Added to Impacted Property, Plant
Property, Plant and
and Equipment CESA Equipment
Write-off in Property, Plant and
as = = Equipment
Energest and Reduction
Administrative Investco of and Reduction of Shareholders’ Equity
Apportionment Pantanal Shareholders’
in the years Equity
2008 and 2009
Depreciation rates: As established by Aneel (Brazilian Electricity Regulatory Agency).
Companies that are entitled to compensation at the end of the concession: all the public utility providers
or independent producers, of hydropower.
Companies that are not entitled to compensation at the end of the concession: wind farms and thermal
power plants (Cenaeel, Elebrás and Pecém).
Assets that are reversible or subject to compensation: all those that are included in accounts 132, with
the exception of account 13206 (not associated with the concession), which in the case of generation has
immaterial values.
14

16. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)
15

17. CPC 28 – Investment property
Investment property is the real estate (land, building or part of a building) maintained by the owner to
obtain income or capital appreciationl, and that is not available for use in the production or supply of
goods or services, for administrative purposes or for sale in the ordinary course of business.
Do I have a lease on a property of mine?
Isn’t the property used in my operating
Do I receive income under this lease?
activity/business?
No
X
Yes
Subtract the value of property, plant and
equipment and classify as Investment
Property Income
16

18. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combinations (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)
17

19. CPC 33 – Employee Benefits (IAS 19)
CPC 33 Employee Benefits covers all the forms of remuneration granted by a sponsoring entity/employer in
exchange for the services rendered by the employees, with the exception of share-based payments.
Pay for work provided
SEVERERANCE BENEFITS
SHORT-TERM BENEFITS
POST-EMPLOYMENT BENEFITS - Severance pay
- Salary OTHER LONG-TERM BENEFITS - Private pension - FGTS – Government severance
- Overtime
- Paid leave - Post-employment medical care indemnity fund for employees
- Vacations and 13th month salary
- Length of service additional - Length of service bonus paid - Notice period
- Profit sharing and gainsharing in the post-employment period - Voluntary Redundancy Program
paid in the following year
(PDV) Benefits
Vacations and 13th month salary
Defined contribution Defined benefit
These should be presented net
of provisions in liabilities. Without responsibility for With responsibility for actuarial
actuarial and investment risks. and investment risks.
Recognition will begin to be performed in Other income/expenses in
Outside the scope of CPC 33
shareholders’ equity, instead of recording it in net income for the year
Inside the scope of CPC 33

20. CPC 33 – Employee Benefits (IAS 19)
Examples of the application of this CPC at the EDP Brasil Group
Changes in the presentation of vacations and Recognition of actuarial gains and losses as
13th month salary in the Balance Sheet Other Compreensive Income
Previous Application Previous Application
2009 2010 2009 2010
Assets Liabilities
Current Assets Current Liabilities
Advances to employees (other) 3,000 5,000 Post-employment Benefits 27,000 27,000
Liabilities Non-current Liabilities
Current Liabilities Post-employment Benefits 104,000 90,000
Advances to employees (other) 50,000 56,000
Application CPC 33 Application CPC 33
2009 2010 2009 2010
Assets Liabilities
Current Assets Current Liabilities
Advances to employees (other) - - Post-employment Benefits 27,000 27,000
Liabilities Non-current Liabilities
Current Liabilities Post-employment Benefits 134,000 120,000
Advances to employees (other) 47,000 51,000
Shareholders’ equity
Vacation pay and 13th month salary advances should Other Comprehensive Income (30,000) (30,000)
be presented net of provisions in liabilities
19

21. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)
20

22. ICPC 01 – Service Concession Arrangement
Before the application of ICPC 01 After the application of ICPC 01*
(IFRIC 12)
Infrastructure associated with the
concession acquired / built
Infrastructure associated
with the concession
acquired / built
Useful life of the item
Item 1
Item 2
.
.
.
Item X
Concession date
Fixed Assets
Intangible Assets Financial Assets
(depreciated during (right to
the concession) compensation)
* The standard will be applied prospectively as from 01/01/2009. Bifurcated Template
only applicable to Distribution. The template of Transmission is of Financial Assets, yet this
template has not yet been designed in the market.
21

23. ICPC 01 – Service Concession Arrangement
Example of the effect by disco
(IFRIC 12)
Before After
ASSETS
Current Assets
Non-current Assets 1,300,000 1,100,000
Receivable from the
Granting Authority 0 150,000
Property, Plant and
Equipment 1,250,000 5,000
Intangible Assetsl 50,000 945,000
LIABILITIES
Current Liabilities
Non-current Liabilities (200,000) 0
Special Obligations (200,000) 0
INCOME/EXPENSES
Expenses 95,000 95,000
Depreciation 85,000 500
Amortization 10,000 94,500
22

24. CPC 17 – Construction Contracts (IAS 11)
Only applicable to the Distribution and Transmission companies of the EDP Energias do Brasil
Group, due to the application of ICPC 01;
There are no adjustments to be made in the Financial Statements;
Requires some items of additional disclosure in the Financial Statements of the companies that
have the application of this CPC, such as Revenue and Cost of Construction.
23

25. CPCs issued in 2009 for application until Dec 2010
General Contents
CPC 15 and ICPC 09 Business Combination (IFRS 3)
CPC 20 Borrowing Costs (IAS 23)
CPC 25 Provisions, Contingent Liabilities and Contingent Assets
CPC 27 and ICPC 10 Property, Plant and Equipment (IAS 16)
CPC 28 Investment Property
CPC 33 Employee Benefits (IAS 19)
ICPC 01 and CPC 17 Service Concession Arrangement (IFRIC12) and Construction Contracts (IAS11)
ICPC 03 Leasing Operations (IFRIC 4, SIC 15 and SIC 27)
24

26. ICPC 03 – Leasing Operations
(IFRIC 4, SIC 15 and SIC 27)
Process for definition of inclusion for ICP03:
Signing of the Contract
Legally, is it a Lease?
Yes – CPC06 No
Financial Is there an implicit lease?
- It is a Specific Asset;
- Right of use;
We should - Ability to operate and control;
record the
asset - Transfers the risks and benefits of the asset.
Yes No
We should record the We should record the
asset in our property, amount in the
plant and equipment company’s operating
income/expenses
There are no leases in the EDP Brasil Group.

27. Other CPCs that are applicable, yet less relevant
(with less or no impact)
Summary
CPC 18 – Investment in Associated Companies and Subsidiaries (IAS 28)
Write off any negative goodwill recognized upon the acquisition of the investments;
Impact on the EDP Brasil Group: write-off of negative goodwill with a positive impact on net income in
the amount of R$ 3MM
CPC 31 – Non-Current Assets Held for Sale (IFRS 5)
The greatest impact of this reclassification is with the disclosure requirements, as the accounting
adjustment is only a reclassification between lines, unless it is necessary to perform a measurement at fair
value of the items classified in this account.
CPC 38, 39, 40 and OCPC 03 – Financial Instruments (IAS 32 and 39 and IFRS 7)
Requires new information disclosure needs, not having an impact on the Financial Statements.
ICPC 08 – Accounting for the Payment of Proposed Dividends
The recognition of dividends should be performed through recording of the compulsory minimum
dividends (25% of net income) as a liability, whereas the rest should be kept in a specific account of
shareholders’ equity, until the final decision to be made by the partners;
26

28. Important point for the electric power sector
It is not established by the CPCs
Regulatory Assets and Liabilities
Regulatory Assets and Liabilities are no longer registered, as they would not
fulfill the concepts established by the Conceptual Framework for
preparation and presentation of the Financial Statements.
27

29. Effects on the Financial Statements of the application of
the IFRS to the Controlling Shareholder
September 30, 2010 Statement of Income September 30, 2010
Balance Sheet (R$ MM)
(R$ MM)
IFRS BRGAAP Variation IFRS BRGAAP Variation
Current Assets 2,356 2,581 (225) Business volume 3,676 3,688 (13)
Other Non-current Assets 1,258 1,008 249 Cost of sales 1,973 2,061 (88)
Non-current Tax 798 530 268 Gross Margin 1,703 1,627 76
Intangible Fixed Assets 3,043 1,122 1,921 Opex 473 485 (12)
Tangible Fixed Assets 5,081 6,751 (1,670) Other costs/income 71 76 (4)
Total Assets 12,536 11,992 544 Total Opex 544 561 (17)
Current Liabilities 2,205 2,312 (107) EBITDA 1,159 1,067 92
Other Non-current Liabilities 646 370 277 Amortization and Provisions 268 245 23
Loans MLP 2,747 2,786 (39) EBIT 891 821 70
Deferred Tax 472 174 298 Financial 175 163 12
Total Liabilities 6,070 5,642 428 RAI 716 658 58
Shareholders’ Equity 4,595 4,612 (18) Taxes 238 218 20
Minority Interest 1,871 1,738 133 Minoritary Shareholders 94 97 (3)
Total Liabilities +SE+MI 12,536 11,992 544 Net Income 384 343 41
There will be differences between the IFRS for the controlling shareholder and the local IFRS, due to the
adoption timing;
The greatest impacts caused by adjustment of assets/liabilities or harmonization of concepts are verified
on the initial adoption date;
28