October, 2013

Disclaimer

The material that follows is a presentation of general background information about ENEVA S.A. and its subsidiaries (collectively, ENEVA or the Company) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. This presentation may contain certain forward-looking statements and information relating to ENEVA that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like may , plan , believe , anticipate , expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. ENEVA, the placement agents and the underwriters do not make any representation as to the accuracy of such information. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without ENEVAs prior written consent.

1
Investment Thesis

Investment Thesis
One of the largest private sector power generators in Brazil
ENEVA currently operates 1.8 GW (2.9 GW in 2014) in coal and gas-fired power plants

Integrated energy platform, with privileged access to natural resources Only private power generator in Brazil with access to onshore gas

Short-term value triggers - Reorganization of the companys structure and tackling of short-term debt challenges - Stronger role of E.ON, bringing technical expertise and cost discipline to ENEVA

Competitive greenfield portfolio Licensed coal, gas and wind power generation projects

ENEVA at a Glance
A Brazilian thermal generator with asset exposure to energy fossil fuels (natural gas and coal)
Company Description
2.9 GW with inflation-protected, long-term PPAs

Geographic Footprint
Amapari Energia

o
o

1.8 GW in operation
1.1 GW under construction

ENEVA 51% / Eletronorte 49% Diesel - 23 MW

Long-term PPAs guarantee R$1.4 billion in annual inflation-adjusted capacity payments PPAs provide hedge against commodity price exposure Integrated gas E&P assets supply up to 8.4 M m/day to ENEVAs power plants Competitive portfolio of licensed greenfield wind, coal and gas fired capacity Natural Gas Exploratory blocks

Itaqui

ENEVA 100% Coal - 360 MW

Pecm I

ENEVA 50% / EDP 50% Coal - 720 MW

Pecm II

Contracted production of 8.4 M m3/day

ENEVA 100% Coal - 365 MW

Parnaba I

ENEVA ownership structure

Free Float (38.2%) Other
27.9%

ENEVA 70% / Petra 30% Natural Gas - 676 MW

Controlling Block Eike Batista

23.9% 37.9% 50%

Parnaba II

BNDES
10.3%

ENEVA 100% Natural Gas - 517 MW

Parnaba III
ENEVA 70% / Petra 30% Natural Gas - 176 MW

50%

MPX / E.ON Partipaes Joint Venture

Parnaba IV
ENEVA 70% / Petra 30% Natural Gas - 56 MW

2
Company Overview

Company History
2.9 GW with inflation-protected long-term PPAs developed since 2007
IPO raising US$1.1 bn Acquisition of interest in 7 onshore exploratory blocks in the Parnaba Basin Operational capacity reaches 1.8 GW with the beginning of commercial operations at Itaqui and Parnaba I TPPs E.ON increased its stake to 36% for a total of R$1.4 bn and joins controlling block Company name changed to ENEVA

Contracts 1,080 MW in the A-5 Auction

2007

2008

2009 ...

2012

2013

Partnership with E.ON, including a R$1.0 bn investment and the creation of a JV Contracts 365 MW in the A-5 Auction Acquisition of greenfield wind projects (Ventos) Beginning of commercial operations at Pecm I TPP ENEVAs first large scale power plant

Operational Assets
1.8 GW of coal and gas-fired power plants in operation

Itaqui TPP

Pecm I TPP

Parnaba I OCGT

Energy Source: Coal ENEVA Stake: 100% Installed Capacity: 360 MW Sold Energy: 315 MW Fixed Revenue: R$299.8 M p.a. Start-up: Feb, 13

Energy Source: Coal ENEVA Stake: 50% Installed Capacity: 720 MW Sold Energy: 615 MW Fixed Revenue: R$567.2 M p.a. Start-up: May, 13

Energy Source: Natural Gas ENEVA Stake: 70% Installed Capacity: 676 MW Sold Energy: 450 MW Fixed Revenue: R$421.2 M p.a. Start-up: Apr, 13

Note: 1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2012)

Power Plants with COD in the next months

Additional 1.1 GW under construction

Pecm II TPP

Parnaba III OCGT

Parnaba IV TPP

Parnaba II CCGT

Energy Source: Coal ENEVA Stake: 100% Installed Capacity: 365 MW Sold Energy: 276 MW Fixed Revenue: R$269.2 M p.a. Start-up: 4Q13 (Standby)

Energy Source: Natural Gas ENEVA Stake: 70% Installed Capacity: 176 MW Sold Energy: 98 MW Fixed Revenue: R$93.5 M p.a. Start-up: 4Q13

Energy Source: Natural Gas ENEVA Stake: 70% Installed Capacity: 56 MW Sold Energy: 46 MW (Free

Energy Source: Natural Gas ENEVA Stake: 100% Installed Capacity: 517 MW Sold Energy: 450 MW

Market)
Fixed Revenue: R$54.0 M p.a. Start-up: 4Q13

Fixed Revenue: R$353.1 M p.a.

Start-up: 1H14

Note: 1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2012)

Integrated Natural Gas E&P

Strong competitive position in gas-fired generation
Highlights
All Parnaba gas-fired power plants are supplied by OGX Maranho (OGXM), owner and operator of 8 onshore exploration blocks ENEVA has an interest of 33.3% in OGXM Declaration of commerciality for 3 gas fields: Gavio Real, Gavio Branco and Gavio Azul Gas supply agreements secured for 8.4 M m/day ENEVA is a natural buyer as a holder of preemptive rights in a potential sale of OGX stake in OGXM

Geographic Footprint
PN-T-48 PN-T-49 PN-T-50

PN-T-68

PN-T-67

OGXM Ownership Structure

PN-T-84

PN-T-85
33.3% 66.6%

PN-T-102

OGX Maranho
Imetame, DELP, Orteng 30% 70% Blocks 1-7 50% Block 8 50%

10

Integrated Natural Gas E&P

Exploration Campaign
22 exploration wells had indications of gas (out of 33 wells drilled)
6.6

Contracted Capacity Ramp-up (Million m/day)

8.4

Declaration of commerciality for 3 gas fields: o o o Gavio Real Gavio Azul Gavio Branco
4.2

5.5

Gavio Real field is producing since Jan, 2013: o o o Producing wells: 9 out of 2 clusters Daily Production: 4.5 M m/day Connected to a 6.0 M m/day GTU Gas Treatment Unit (as of today)
Power Plant Wells

Current (Sep, 13) Parnaba II 9

4Q13 (Early) Parnaba III 13

4Q13 (Late)

1H14

Parnaba IV 16

Parnaba II 19

Upcoming Events
4Q13 (Early): New flare installation and connection of 4 production wells

All gas dedicated to ENEVAs Parnaiba TPPs

4Q13 (Late) / 1Q14: Connection of 3 production wells Developing evaluation plans for 6 new discoveries 2014 / 2015: o Connection of 3 production wells and GTU expansion to 8.4 Mm/day o Gavio Branco production development and submission to ANP of assessment plan for new discoveries (Mar, 2014)

11

3
Short-Term Value Triggers

Plant Improvement Plan

1H13 results show need for improvement in operations
1Q13 Consolidated EBITDA (R$ Million)
1H13 EBITDA negatively impacted by:
o Net losses from energy acquisition due to start-up delays o Unavailability charges stemming from maintenance halts o Start-up costs related to higher diesel consumption
1Q13 Consolidated EBITDA Net costs related to the acquisition of energy Unavailability charges Startup costs 1Q13 Consolidated Adjusted EBITDA -137.6 73.0 20.9 24.8 -18.9

Net Revenues (R$ Million) and Installed Capacity (MW)

1,200 1,000 807 800 600 400 200 00 1Q13 Net Revenue 2Q13 Installed Capacity 196 +102%

1,036

500 450 400

2Q13 Consolidated EBITDA (R$ Million)

69.5 9.0 50.3

350
300 395 250 200 150 100 50 0 2Q13 Consolidated EBITDA Net costs related to the acquisition of energy Unavailability charges Startup costs -38.6 10.3

2Q13 Consolidated Adjusted EBITDA

Unavailability charges increased in 2Q13 mainly due to higher energy spot prices and the commencement of operations of additional 229 MW

Note: Consolidated figures do not include Pecm I as per IFRS rules

13

Plant Improvement Plan

E.ON is already contributing to improve plant efficiency
Itaqui TPP
400 700 350 600 300 250 200 150 100 50 0 500 400 300 200 100 0

Parnaba I OCGT

Verified

Planned (ONS)

Verified

Planned (ONS)

Plant improvement plan

Core processes and Technologies o o o Optimize maintenance planning Improve fuel consumption control Establish clear operational KPI/metrics Managerial structure o o o Incentivize right behaviors/systematize KPI Visualize and track improvements Effective organizational set-up/clear and robust roles definition o Mindset and Capabilities o Enforce attitude continuous improvement

Leverage on E.ONs technical expertise

14

Lengthening of Debt Maturity

2Q13 Gross Debt Profile (R$ Million)
Short Term Debt (R$ Million)
2,651 Total: R$5,733 M
Project Holding

2,651 3,082
54% 46%

1,121
Short Term Long Term

1,530

Paid-off by capital increase

2Q13 Short Term Debt

R$1,121 M at project level: o R$845.2 M refer to outstanding bridge-loans to Parnaba I & II power plants to be paid-off with draw down from long-term financing R$276.2 M refer to current portion of the project finance debts of Pecm II, Itaqui and Parnaba I

100

LT Holding / Project Debenture

1,430

ENEVA holding plans to eliminate outstanding intercompany loans with its subsidiaries through the issue of LT tax-advantaged infrastructure

debenture at project level with subsequent use of funds to pay-off loans o

The remaining short-term debt balance at the holding level should be

replaced by a long-term debenture

15

Regulatory Issues
Main ongoing discussions with ANEEL
Granted
Postponement of PPAs start dates (savings of R$720 million) Change in pass-through criteria for power purchased to fulfill contractual obligations (R$220 million recovered) Postponement of PPA start date for Pecm II until conclusion of transmission by Chesf/TDG

Ongoing Discussions Pass-through Criteria for power acquisition costs

Costs incurred before start-up

Min = [110% PLD, CVU, ICB, PPA]

ANEEL Res. 165

Cost to the system at the time of the auction

ICB

ICB Online (+R$150 million)

Current (online) cost to the system

Operational Issues
Regulated Market PPA (Pecm I, Itaqui and Pecm II) provides for an annual revision of firm energy based on a 60-month rolling average of the plants availability Costs incurred after Start-up o If effective unavailability > declared unavailability Firm energy is reduced ADOMP Criteria: Plant unavailability is measured on an hourly basis o If effective unavailability > declared unavailability Plant is charged (spot variable cost) on the difference ENEVA is challenging the ADOMP criteria on the basis that it goes against PPA (potential recovery of R$ 269 million)
Note: 1) Figures as of Aug, 2013; 2) Estimate reimburse as of Aug, 2013

16

Cost Reduction Program

ENEVA is currently working on a Medium Term Plan 2014-2016, to be approved by the Board of Directors in the end of October, aimed at achieving significant cost reduction at holding and project level through:

Leaner organizational structure

Headcount reduction
Decrease in third-party services Reduction of fixed costs at project level

17

4
Brazilian Power Market and Greenfield Portfolio

Brazilian Energy Matrix

Brazil is highly dependent on hydro generation with increasingly faster depletion of reservoirs

Brazils Generation Capacity: 131 GW

Southeast Reservoirs

Breakdown by source 2012

90% 16.0% 80% 1.6% 1.6% 2.2% 70% 67% 60% 50% 9.9% 40% 30% 68.7% 20% 46% 38% 76%

~70% of total storage capacity

62% 63% 64% 61% 54% 55% 49%

56%

29%

10%
0%

Dry Season

Hydro

Gas

Coal

Nuclear

Wind

Others

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug 2012

Sep

Oct 2013

Nov

Dec

Average 2007-2011

Source: ANEEL

19

Electric System Reliability

New thermal plants are necessary to guarantee reliable power supply

Water storage capacity has stagnated,

leading to decreased system autonomy
30 90 25 Reservoirs Autonomy (Months) 85 20 80 15

Economic growth will boost power demand

leading to a supply deficit in 2016

86.5

78.1

Current reservoir autonomy ~6 months

GWavg

75 ENERGY DEMAND

10

70

65.2
5 65

64.7
2014 2015 2016 2017

PHYSICAL GUARANTEE (with signed PPAs) 2018 2019 2020

0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2013

60 2013

Autonomy = Storage Capacity / (Load Thermal Generation)

2016-on: New generation required ~8 GWavg required until 2020

Source: ONS

20

ENEVAs Greenfield Portfolio

Attractive licensed greenfield projects in various development stages

Power supply-demand unbalanced

Hydropower concentrated matrix

Spot prices at historical highs

Demand for baseload generation

Opportunities for ENEVAs growth

Parnaba Complex

Integrated to natural gas resources

Solar Tau
1 MW

Located in a tax-advantaged region

Located in one Brazils best wind resource areas

Ventos Wind Complex

600 MW

Ventos Wind Complex

Attractive load factor Just 30km from grid connection Land ownership assured Located at a port with a regasification terminal build license 150km from Campos Basin natural gas accumulations Environmental licensed to both coal and gas operations Integrated to the Seival Mine (proven reserves: 152 M ton) Low operation costs

Parnaba Complex
2,166 MW

Au

2,100 MW Coal 3,300 MW Natural Gas

Au (Coal + Gas)

Seival Mine

License granted 152 M ton in proven reserves

Sul & Seival

727 MW

Sul

Seival
600 MW

21

5
Appendix | Images

Pecm I & II TPPs

23

Itaqui TPP

24

Parnaba I & II TPPs

25

Natural Gas: Parnaba E&P

26

Thank you.
www.eneva.com.br