1. Financial and Operating Results
Second Quarter, 2007

2. Agenda
Highlights
Operating Results
Financial Results
2

3. Agenda
Highlights
Operating Results
Financial Results
3

4. Highlights
Financial Results
Net Revenues totaled R$206.4 million in the 2Q07, 12.6% up year-on-year
EBITDA totaled R$93.6 million in the 2Q07 (EBITDA Margin of 45.3%), 42.3% up on the R$65.8
million recorded in the 2Q06
Net Income reached R$34.1 million in the 2Q07, 66.2% up year-on-year
A subsidiária obtained on april-07 the accelerated depreciation fiscal benefit from SUDENE
Prior authorization from ANEEL requested, for the implementation of a corporate restructuring
plan, allowing CEMAR to book goodwilll of R$238.0 million and obtain fiscal benefits
Operating Results
Energy sales (MWh) growth of 13.3% in the 2Q07, over 2Q06
In the 2Q07, CEMAR’s DEC and FEC ratios improved by 42.1% and 19.7%, respectively, compared
to the 2Q06
Corporate Governance
The Company will start the conversion of its non-voting shares into voting shares and the adhesion
process to the Novo Mercado segment in Bovespa, upon ANEEL’s approval
4

5. Agenda
Highlights
Operating Results
Financial Results
5

6. Customer Base
• Growth of 7.0% in the customer base compared to 2Q06 (90.9 thousand new customers)
Customer Base (thousands) Customer Base Breakdown (% per Class)
Others – 4.8%
8.9% 8.7% 8.9%
7.5% 7.2% Comm. – 7.3%
6.9%
Ind. – 0.7%
1,281 1,307 1,327 1,349 1,373 1,398
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Res. – 87.3%
Customers % Chg. Y-O-Y
6

7. Energy Volume
• Growth of 13.3% in billed energy volume over the 2Q06
• Strong growth in the residential and industrial classes: 14.6% and 28.5%, respectively
• Market Growth Rate Guidance: 2007 – 7% to 9%;
2008 and 2009 – between 6% and 7% p.a.; After 2009: 5% p.a.
Energy Volume per Class
CONSUMPTION CLASS (MWh) 2Q06 2Q07 % Chg. 1H06 1H07 % Chg.
Residential 292,580 335,274 14.6% 575,030 645,525 12.3%
Industrial 87,245 112,085 28.5% 173,176 207,189 19.6%
Commercial 142,685 156,100 9.4% 280,664 300,246 7.0%
Others (ex. own consumption) 175,296 187,058 6.7% 338,420 362,658 7.2%
TOTAL 697,806 790,517 13.3% 1,367,290 1,515,617 10.8%
Billed Energy (% per Class) Energy Load (% Chg. MWh)
Brazil, NE and CEMAR – 2Q07 vs. 2Q06
Others – 23.7%
Res. – 42.4%
5.5% 6.3% 11.0%
Comm. – 19.7% Ind. – 14.2% Brazil - SIN Northeast CEMAR
7

8. Energy Balance and Losses
• Energy required by CEMAR grew 11.0% in the 2Q07
• Energy Losses stable
• Promising results, beggining to show the positive effects rendered
by the work of the energy recovery team
Energy Balance - MWh
Energy Balance (MWh) 2Q06 2Q07 % Chg. 1H06 1H07 % Chg.
Required Energy * 984,167 1,092,214 11.0% 1,950,917 2,141,615 9.8%
Sales ** 699,926 791,834 13.1% 1,370,591 1,518,103 10.8%
Losses 284,241 300,380 5.7% 580,326 623,512 7.4%
* Includes own generation
** Includes energy sales to consumer classes, own consumption and supply to CEPISA
Electricity Losses (LTM)
29.8% 29.6% 29.9% 29.8% 29.9% 29.5%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
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9. DEC and FEC
• Sound evolution in energy service quality
• CEMAR’s DEC and FEC ratios improved by 42.4% and 20.0% in the last 12 months
• 2Q07 improvement even higher, purging supplier performance: 45.9% on DEC and 25.0% on FEC
DEC FEC
15.5
1.1 7.6
11.8
0,9 5.9 5.9
9.8 5.7 -25.0%
0.9 -45.9% 5.3
0,7 4.8
7.8 7.6 1,2
1,9 6.8 1,2 1,4
0,9 0,9
14.4 0,9
0,9
10.9 6.7
5.2
7.8 4.2 4.3 4.6
6.9 6.7 3.9
5.9
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1Q06 2Q06 3T06 4T06 1T07 2T07
Distributor Supplier CEMAR Distributor Supplier CEMAR
9

10. Agenda
Highlights
Operating Results
Financial Results
10

11. Net Revenues
• Adjusting for the impact of the “CVA PLPT” over Net Revenues,
CEMAR recorded an average growth rate of 22.3% p.a. between quarters
Average = 19.8% pa Average = 22.3% pa
Net Revenues (R$ Million) Adjusted Net Revenues (R$ Million)
54.4%
31.6% 18.3% 17.9%
29.6% 27.9% 29.6% 14.3%
27.9%
7.8% 13.6% 12.6%
171.8 183.3 248.4 206.6 195.1 206.4 171.8 183.3 211.8 219.0 203.2 216.1
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
Net Revenues % Chg. Y-O-Y Adjusted Net Rev. % Chg. Y-O-Y
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12. Manageable Costs and Expenses
• PMSO (excluding provisions) reached 13.8% of Net Revenues in the 2Q07, 4.1 p.p. below the 2Q06
• Personnel: R$10.3 million in the 2Q07, 24.9% lower than 2Q06, due to the end of restructuring
• Third Party Services: network maintenance and collection increased expenses by 11.2% in the 2Q07
• Other: avg. recurring reversal of R$1.5 million/quarter,
with administrative fees in energy recovery
• Allowance for Doubtful Accounts and Losses in line with the guidance
provided to the market, of 2-3% of GOR
Manageable Costs and Expenses
R$ Million 2Q06 2Q07 % Chg. 1H06 1H07 % Chg.
Personnel 13.7 10.3 -24.9% 28.9 23.1 -19.9%
Material 1.0 0.8 -17.8% 2.4 2.4 1.4%
Services 14.6 16.3 11.2% 28.0 32.6 16.5%
Others 3.5 1.0 -70.6% 6.2 2.1 -65.7%
PMSO 32.8 28.4 -13.5% 65.5 60.3 -7.9%
PMSO (% Net Revenues) 17.9% 13.8% -4.1 p.p. 18.5% 15.0% -3.4 p.p.
Provisions 10.4 6.7 -35.2% 12.2 16.7 36.9%
Allowance for Doubtful Accounts and Losses 8.2 4.0 -51.0% 8.6 11.7 35.5%
% of Gross Revenues 3.2% 1.4% -1.8 p.p. 1.7% 2.0% 0.3 p.p.
Provision for Contigencies and Other Provisions 2.2 2.7 23.1% 3.6 5.0 39.7%
MANAGEABLE COSTS AND EXPENSES 43.2 35.1 -18.7% 77.7 77.0 -0.9%
MANAGEABLE COSTS AND EXPENSES (% Net Revenues) 23.6% 17.0% -6.5 p.p. 21.9% 19.2% -2.7 p.p.
12

13. Productivity
• Continuous productivity gains and effectiveness in manageable costs and expenses
• 2Q07 posted a 19.3% decrease in PMSO per Customer, compared to 2Q06
• Increase of 11.7% in Customers per Employee, to 1,188 in the 2Q07, from 1,064 in the 2Q06
PMSO per Customer (R$/Customer) Customers per Employee*
11.7%
-19.3%
25.8 25.4 23.0 22.4 23.5 20.5 998 1,064 1,130 1,161 1,176 1,188
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
* Excludes third party workers
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14. EBITDA and EBITDA Margin
• EBITDA reached R$93.6 million in the 2T07, 42.3% up compared to R$67.6 million in the 2Q06
• EBITDA Margin of 45.3% in the 2Q07, 9.4 p.p. higher than 2Q06
EBITDA (R$ million) and EBITDA Margin (% of Net Revenues)
47.5%
43.9% 45.3%
39.4% 39.5%
35.9% 42.3 %
67.6 65.8 109.2 98.1 77.0 93.6
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
EBITDA EBITDA Margin
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15. Profitability
• Substantial improvements on profitability, measured by EBITDA
• 2Q07 EBITDA per Customer increased by 12.9%, compared to 2Q06
• 25,7% increase on EBITDA per MWh, to R$118.4 in the 2Q07 from R$94.2 in the 2Q06
EBITDA per Customer (R$/Customer) EBITDA per MWh (R$/MWh)
25.7 %
12.9 %
53.4 59.8 82.9 73.3 56.6 67.5 101.0 94.2 147.6 121.7 106.2 118.4
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
15

16. Income Tax and Social Contribution
• Using the Accelerated Depreciation benefit, the Company could record R$18.5 million
as tax credit reversal – net tax expense was positive in the amount of R$6.8 million
• Tax benefits obtained through SUDENE and the deferred tax asset compensation should
lead effective tax expense to 6.0% at CEMAR and to 9.0% at Equatorial in 2007
Income Tax / Social Contribution (R$ million) 1H06 1H07
Earnings Before Taxes (1) 76.9 135.9
Expense Income Tax/ Social Contribution (Income Statement) (26.1) (40.8)
(+) Reversal in Tax Provision - 2005 (3.1) -
(-) Deferred Tax Asset 10.5 37.8
(-) ADENE Incentive (Minority Interest) 5.7 3.2
(+) Reversl in ADENE Incentive 2006 (Minority Interest) - (0.8)
(=) Income Tax/Social Contribution (13.0) (0.6)
(+) Fiscal Credits - (6.0)
(+)Retained Income Tax/Social Contribution - (2.4)
(=) Tax - Cash Basis (2) (13.0) (9.0)
Effective Tax Rate = (1)/(2) -16.9% -6.6%
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17. Net Income
• 2Q07 Net Income up by 66.3%, to R$34.1 million, from R$20.5 million in the 2Q06
Net Income (R$ million) and Net Margin (% Net Revenues)
23.2%
19.4%
15.8% 16.5%
11.2%
5.2%
21.4*
8.9 20.5 48.1 47.8 30.8 34.1
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
Net Income Net Margin
* 1Q06 Pro Forma Net Income excludes R$12,5 MM of non recurring IPO related expenses
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18. Indebtedness
• Gross Debt reached R$695.3 million on june-07, a R$100.8 million increase compared to the 4Q06
i) R$5.6 million – RGR/Eletrobras (network expansion investments - CEMAR)
ii) R$28.0 million – 5th Tranche/BNB, (network expansion and energy recovery investments)
iii) R$5.4 million – 3rd Issue of debentures (investments)
iv) R$18.6 million – RGR/Eletrobras (PLPT)
v) R$28.5 million – BNDES (network maintenance, IT systems and energy recovery investments)
• Debt Profile:
Average Cost of 11.0% p.a. (LTM) or 83.8% of CDI
Average Term of 9.2 years
Gross Debt – 2Q07
Avg. Spread Avg. Due Date Avg. Maturity Part.
Reference
Maturity R$ million Total % (per year) (month-year) (in years) (%)
Short Term 24.2 3.5% Libor Libor + 0,8% apr-18 11.0 0.8%
IGP-M 17 years 4,0% jan-24 16.5 18.0%
Long Term 671.1 96.5% TJLP 4,8% jul-13 6.2 4.4%
2008 15.6 2.2% Fixed (R$) 11,1% mar-17 9.9 13.4%
2009 47.0 6.8% RGR 6,2% feb-17 9.8 9.8%
Fixed (US$) 6,8% jun-20 13.1 1.0%
2010 49.5 7.1%
FINEL* 9,8% jan-16 8.8 8.5%
2011 118.8 17.1% CDI 105,4% of CDI may-13 6.1 44.1%
After 2011 440.2 63.3%
Total 695.3 100.0%
* The sectorial index FINEL represents 20% of IGP-M
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19. Net Debt
• Maintenance of a high liquidity level and low financial leverage
Consolidated Net Debt (R$ million) Ownership Adjusted Net Debt (R$ million)
90.6
0.6 x 59.2
171.9 EBITDA
112.3 0,4 x
EBITDA
191.1
191.1
886.3 241.7 454.4 91.8
Cash Eq.
Cash Eq.
Cash Eq.
Cash Eq.
Net Debt
Net Debt
CEMAR
CEMAR
Gross
EQTL
EQTL
Gross
Assets
Cash &
Cash &
Cash &
Assets
Cash &
Debt
Debt
Reg.
2T07
2T07
Reg.
Net
Net
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20. Consolidated Net Debt
• Maintenance of a high liquidity level and low financial leverage
Consolidated Net Debt (R$ million)
and Net Debt / EBITDA (LTM)
1.5
0.7 0.6
0.5
0.3 0.3
331.9 179.8 105.1 105.0 176.0 241.7
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
Net Debt Net Debt / EBITDA (LTM)
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21. CAPEX
• CEMAR* investments reached R$45.0 million in the 2Q07
• Energy sales growth led to revision of investment expectations
CAPEX 2007: R$200-R$220 million / CAPEX 2007-2009: R$500-R$550 million
CEMAR’s CAPEX (R$ million)
56.1
0.5
9.5
45.0 Others
0.4
3.3
Equipment and
16.4 Systems
31.5 31.5 Network Expansion
0.2
27.0 4.5 2.9
22.3 1.9 27.1 Network Maintenance
2.2
3.8 0.2
4.2 12.8
8.3 18.1
5.0 29.6
12.8 13.0 14.0 14.3
8.7
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
*Excludes PLPT related direct investments
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22. PLPT (Luz para Todos – Light for All Program
Direct Investments PLPT (R$ million)
44,0 %
30.9 28.9 58.1 51.2 35.4 41.6
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
Connected Customers 119,589
111,826
103,067
80,577
62,443
50,824
10,688 11,619 18,134 22,490 8,759 7,763
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
Quarterly Connections Accumulated Connections
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23. Equatorial’s Share Performance – EQTL11
Price Evolution: EQTL11, Ibovespa and IEE (3/31/06 = 100 to 7/31/07)
170
160
Price Evolution
(3/31/06 = 100 to 7/31/07):
150
EQTL11 Total Return
Price Evolution
140 (Div.-R$1.64/UNIT): 51.5%
130 IBOV: 42.8
120 IEE: 41.0%
110 Avg. Traded Volume:
100 2006 - R$3.1 million,
90 Last 60 days - R$6.8 million;
80 Last 30 days - R$8.1 million
03/31/06
04/27/06
05/24/06
06/20/06
07/17/06
08/13/06
09/09/06
10/06/06
11/02/06
11/29/06
12/26/06
01/22/07
02/18/07
03/17/07
04/13/07
05/10/07
06/06/07
07/03/07
07/30/07
EQTL11 IBOV IEE
Monthly Average of Daily Trading (R$ million)
7.3 3.0 1.6 0.8 1.9 2.0 3.1 1.4 2.1 8.1 4.1 4.6 4.9 6.1 5.5 8.1
may/07
sep/06
nov/06
may/06
jun/07
jun/06
oct/06
aug/06
dec/06
apr/06
feb/07
mar/07
apr/07
jan/07
jul/06
jul/07
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24. Contact
Leonardo Dias
CFO and Investor Relations Officer
Arnaldo Faissol
Investor Relations Manager
Phone1: +55 (98) 3217-2245
Phone2: +55 (98) 3217-2113
Email: ri@equatorialenergia.com.br
Website: http://www.equatorialenergia.com.br/ri
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25. 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/ri 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.
25