April, 2014

1
Investment Thesis

Investment Thesis
One of the largest private sector power generators in Brazil
ENEVA currently operates 2.4GW in coal and gas-fired power plants (2.9 GW until the end of year)

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 continuous TPPs operation stabilization - 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
2.9GW inflation-protected, long-term PPAs

Geographic Footprint
Amapari Energia

o
o

2.4GW in operation
517MW under construction

ENEVA 51% / Eletronorte 49% Diesel - 23MW

Long-term PPAs guarantee R$2.2 billion in annual inflation-adjusted capacity payments PPAs provide hedge against commodity price exposure Integrated gas E&P assets supply up to 8.4MM 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 - 360MW

Pecm I

ENEVA 50% / EDP 50% Coal - 720MW

Pecm II

Contracted production of 8.4MM m3/day

ENEVA 100% Coal - 365MW

Solar Tau
ENEVA 100% Solar - 1MW

ENEVA ownership structure

Free Float (38.2%) Other
27.9%

Parnaba I

Controlling Block Eike Batista

23.9% 37.9% 50%

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

BNDES
10.3%

Parnaba II

ENEVA 100% Natural Gas - 517MW

Parnaba III
50%

MPX / E.ON Partipaes Joint Venture

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

Parnaba IV

Note: 1) Ownership structure assumes future MPX / E.ON Participaes JV incorporation, as disclosed on the Material Fact Notice as of July 3, 2013

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

2
Company Overview

Key Milestones, Challenges & Outlook

Unique Development Track, overcoming its Short Term Challenges
Operational capacity reaches 2.4GW E.ON stake increase to 36%, joining controlling block Name changed to ENEVA Successful start of drilling campaign in Parnaba (2010) Parnaba II 517MW contracted in A-3 auction Power supply contracts for Parnaba I secured (676MW), start of Parnaba complex development Creation of MPX (2007) 1,080MW in the A-5 (2007) IPO (USD1.1BN) 365MW in the A-5 (2008) Parnaba Basin onshore exploratory blocks (2009) 2 fields in Parnaba declared commercial Gavio Real and Gavio Azul with estimated production of up to 6MM m3/day Successful closing of E.ON partnership Acquisition of greenfield projects Beginning of commercial operations at Pecm I Waivers received from the Regulatory Agency Asset stabilization ongoing, further improvements on availability in Jan, 2014 Successful injunction halting ADOMP in Jan, 2014

Recapitalization efforts
Balance Sheet strengthening Further cost reduction measures

Signing of E.ON / Cambuhy recapitalization of Parnaba Gs Natural to secure gas delivery

Asset stabilization plan developed with very good imminent results ICB Online criteria from the Regulatory Agency achieved

2014

2013 2012

2007 - 2009

2010 - 2011

Operational Assets (1)

2.4GW of coal and gas-fired power plants in operation

Itaqui

Pecm I

Pecm II

Energy Source: Coal ENEVA Stake: 100% Installed Capacity: 360MW Sold Energy: 315MW Fixed Revenue: R$317.3MM p.a. Start-up: Feb, 13

Energy Source: Coal ENEVA Stake: 50% Installed Capacity: 720MW Sold Energy: 615MW Fixed Revenue: R$600.3MM p.a. Start-up: May, 13

Energy Source: Coal ENEVA Stake: 100% Installed Capacity: 365MW Sold Energy: 276MW Fixed Revenue: R$284.9MM p.a. Start-up: Oct, 13

Note: 1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2013)

Operational Assets (2)

2.4GW of coal and gas-fired power plants in operation

Parnaba I (OCGT)

Parnaba III (OCGT)

Parnaba IV

Energy Source: Natural Gas ENEVA Stake: 70% Installed Capacity: 676MW Sold Energy: 450MW
Fixed Revenue: R$445.9MM p.a.

Energy Source: Natural Gas ENEVA Stake: 70% Installed Capacity: 176MW Sold Energy: 98MW

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

Fixed Revenue: R$54.0MM p.a. Start-up: Dec, 13

Fixed Revenue: R$99.0MM p.a.

Start-up: Oct, 13

Start-up: Apr, 13

Notes: 1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2013); 2) 169MW already in operation

Power Plant with COD in 2014

Additional 517 MW under construction

Parnaba II (CCGT)

Energy Source: Natural Gas

ENEVA Stake: 100%

Installed Capacity: 517MW

Sold Energy: 450MW

Fixed Revenue: R$373.7MM p.a.

Start-up: 2H14

Note: 1) Fixed revenues are indexed to inflation index IPCA (Database: Nov, 2013)

Integrated Natural Gas E&P

Strong competitive position in gas-fired generation
Highlights
All Parnaba gas-fired power plants are supplied by Parnaba Gs Natural, owner and operator of 8 onshore exploration blocks ENEVA has a direct interest in PGN as key supplier of its TPPs Declaration of commerciality with Development Plan for 3 gas fields: Gavio Real, Gavio Branco and Gavio Azul Gas supply agreements secured for 8.4MM m/day R$250 million capital injection concluded in Feb, 2014

Geographic Footprint

Strong Shareholders

9.1%

18.2%

72.7%

Parnaba Gs Natural Outstanding management capabilities Financial strength and discipline Sector know-how: E.ON E&P looks at a volume delivery of +170k barrels/day and +60 licenses in GB and Norway Tried and tested Parnaba experience, know-how of Parnaba Complex rooted within PGN
Note: (1) Ownership structure after execution of the sale and purchase agreement between OGP and Cambuhy, subject to approval by OG Ps creditors, under its judicial recovery procedure, and authorization by ANP

10

Integrated Natural Gas E&P

Exploration Campaign
37 wells drilled, of which 26 have gas indications

Production Ramp-up (MM m/day)

8.4 6.6

o
o

18 wells with discoveries

8 wells with gas indications

Declaration of commerciality with Development Plan for 3 gas fields: o o o Gavio Real Gavio Azul Gavio Branco
Wells Power Plant

Current

2H14

Parnaba I, Parnaba III and Parnaba IV 16

Parnaba II 19

Gavio Real field is producing since Jan, 2013: o o o 16 producing wells out of 5 clusters Daily Production: 6.6MM m/day of natural gas Connected to a 6.6MM m/day GTU Gas Treatment Unit (as of today) All gas dedicated to ENEVAs Parnaba TPPs o

Upcoming Events
2014 / 2015:
o Connection of 3 additional production wells and GTU expansion to
8.4MMm/day Gavio Branco production development and submission to ANP of assessment plan for new discoveries (Mar, 2014)

11

3
Short-Term Value Triggers

Operational Performance (Itaqui)

Positive EBITDA driven by increased availability but also one-time events. Variable costs covered by variable revenues
EBITDA (R$MM)
24.2

1st quarter of positive EBITDA since COD, due to increased availability and reduced operating costs EBITDA amounted R$24.2MM (EBITDA mg: 16.1%), mostly attributable to:
o o ICB Online reimbursement (R$17.2MM); Lower unavailability costs despite higher spot prices, as a result of

1Q13

2Q13

3Q13

4Q13

-5.9 -31.3

improved operational performance

o
-95.3

Reduction in variable cost per MWh (-18.7% QoQ)

Availability
83% 84% 87% 75%

Variable Revenue X Variable Cost (R$/MWh)

261

232

63%
COD: Feb 5, 2013 144 159 128 149 112

141
108 103 113 115 116

107

106

103

102

102

100

104

108

107

1Q13

2Q13

3Q13

4Q13

1Q14

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Variable Cost Variable Revenue

Sources: ONS, Company estimates

13

Operational Performance (Pecm II)

Availability in the first 3 months higher than international benchmark. Recurring positive margin on dispatch
EBITDA (R$MM)
55.4

Startup on October 18, 2013 EBITDA amounted R$55.4MM (EBITDA mg: 37.8%) in the 4Q13, mostly attributable to:
o Injunction granting Fixed Revenues from September until

commercial startup (R$31MM); o

1Q13 2Q13 3Q13 4Q13

Unavailability costs impacted by higher spot prices (R$22.3MM); ICB Online reimbursement (R$6.1MM).

-10.7

-6.1

-8.3

Availability
96% 85%

Variable Revenue X Variable Cost (R$/MWh)

114 COD: Oct 18, 2013 92

118

122

99

111

N.A.
1Q13

N.A.
2Q13

N.A.
3Q13 4Q13 1Q14
Jan-13...Set-13 Oct-13 Variable Cost Nov-13 Variable Revenue Dec-13

Sources: ONS, Company estimates

14

Operational Performance (Parnaba I)

Unavailability costs impacted EBITDA, despite plants full capacity and stable operations

EBITDA (R$MM)
58.8

EBITDA amounted R$32.0MM (EBITDA mg: 14.9%), mostly attributable to:

o
28.2 32.0

Higher

unavailability

costs

(R$17.5MM),

primarily

due

to

stoppages to allow Parnaba III and Parnaba IV to be connected to the grid (R$6MM); o Variable cost control; Stable operations.

1Q13

2Q13

3Q13

4Q13

-5.9

Availability
96% 91% 96% 96% 99%

Variable Revenue X Variable Cost (R$/MWh)

COD: Feb 1st, 2013 to Apr 12, 2013 100 104

80

82

94

99

96

93

99

95

92

77

74

65

75

80

68

77

78

74

79

90

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 1Q13 2Q13 3Q13 4Q13 1Q14 Variable Cost Variable Revenue

Sources: ONS, Company estimates

OBS: Dispatch margin captured by Parnaba Gs Natural

15

Operational Performance (Pecm I)

EBITDA benefited by one-time items, despite outage of Turbine #1 in December
EBITDA (R$MM)
40.1 61.7

EBITDA amounted R$61.7MM (EBITDA mg: 18.5%), mostly attributable to:

o o Lower Variable Revenue due to outage of Turbine #1 throughout 4Q13; Higher Unavailability Costs (R$83.9MM), despite accounting in December in accordance with 60-month rolling average unavailability (R$3.2MM);

1Q13

2Q13

3Q13

4Q13

-63.8

o
o

ICB Online reimbursement (R$107.8MM);

Higher Fuel Costs (Coal: R$56.6MM; Diesel: R$12.3MM), inflated due to shutting down and restarting processes from stoppages Lower variable cost (-7.0% QoQ)

-143.4

Availability
70% 39% 64% 47% 70%

Variable Revenue X Variable Cost (R$/MWh)

318 COD: Dec 1st, 2012 May 10, 2013

151

154 127 118 117

139

138 109

119

134 107 110 114

1Q13

2Q13

3Q13

4Q13

1Q14

111

105

104

Sources: ONS, Company estimates

100

99

99

97

102

105

106

In 4Q13 and Jan, 14, Turbine #1 was 2,327 hours unavailable primarily due to shaft maintenance and hydrogen seal replacement
NOTE: 1) Figures consider 100% of Pecm I.

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Variable Cost Variable Revenue

16

Operational Performance (Parnaba III)

High availability since COD
EBITDA (R$MM)
1.1

Start of commercial operations on October 22, 2013

EBITDA amounted R$1.1MM, impacted by R$37.9MM of net energy

acquisition costs incurred to meet contractual obligations

N.A.
1Q13

N.A.
2Q13

N.A.
3Q13 4Q13

Availability
100%

Variable Revenue X Variable Cost (R$/MWh)

94%
161 COD: Oct 22, 2013 161

N.A.
1Q13

N.A.
2Q13

N.A.
3Q13 4Q13 1Q14 Jan-13...Out-13

75 Nov-13 Variable Cost Variable Revenue

71 Dec-13

Sources: ONS, Company estimates NOTE: 1) Figures consider 100% of Parnaba III

OBS: Dispatch margin captured by Parnaba Gs Natural

17

Refinancing of Holding Debt

Successful short-term debt refinance and additional credit lines secured
Consolidated Debt (R$MM)
6,211 278 5,551 357 5,195
+14.2% (net debt)

Consolidated Short-Term Debt (R$MM)

846
35%

1,562
65%

5,933

Gross Short-Term Debt R$2,408MM

3Q13
Net Debt

4Q13
Cash and Cash Equivalents

Hold Co.

Project Related

R$845.9MM out of the total debt balance of short-term debt is

Consolidated Gross Debt Profile (R$MM)

allocated in the projects, as follows:

o R$280.4MM: Current portion of the long-term debts of Itaqui, Pecm II and Parnaba I;

2,408 39% 3,802 61%

Total Gross Debt R$6,211MM

R$85.3MM: Bridge loans to Parnaba I, maturing in December, 2014 and April, 2015. The outstanding balance will be paid-off in

installments, which started in October, 2013;

o R$480.3MM: Bridge loans to Parnaba II, which should be paidoff with the disbursement of the long-term financing packages.

Short Term

Long Term

18

Regulatory Update
Positive outcomes in 4Q13 and early 2014
ADOMP Downtime/Unavailability Charges
Pecm I and Itaqui filed in Jan, 2014 a lawsuit against Aneel questioning hourly-based unavailability charges; On Jan 24, 2014, a Federal Court granted an injunction halting unavailability charges as measured, establishing the methodology provided for in PPAs (60-month rolling average); The lawsuit also claims the reimbursement of amounts paid since PPAs beginning; Request for revision for ADOMP methodology presented to Aneel last week

ICB Online Pass-through criteria for power purchase in case of startup delay
Aneel approved a revised reimbursement criteria for energy acquisition costs; New criteria establishes that reimbursement be based on the current ("online") cost of the plant to the system (ICB Online), in case it was operating commercially; The decision was retroactive to the PPA start dates.

Pecm II Fixed Revenue Reimbursement

Pecm II filed a lawsuit claiming for fixed revenues of Jul, 2013 and Aug, 2013 (R$48MM). Decision pending; Already received R$31MM from Sept, 2013 up to plants COD (Oct 18, 2013), as granted by an injunction 19

Cost Reduction Program

ENEVA developed a Medium Term Plan 2014-2016 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

20

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% 80% 1.6% 1.6% 2.2% 70% 67% 60% 50% 9.9% 40% 30% 68.7% 20% 10% 0% Jan 46% 76%

~70% of total storage capacity

16.0%

62% 63% 64% 61% 54% 55% 49% 45%

56%

38%

42% 43% 29%

Dry Season

Hydro

Gas

Coal

Nuclear

Wind

Others

Feb

Mar

Apr

May

Jun

Jul

Aug 2012

Sep

Oct 2013

Nov

Dec

Average 2007-2011

Source: ANEEL

22

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

78

Current reservoir autonomy ~6 months

GWavg

75 ENERGY DEMAND

10

70

65
5 65

65
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

23

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

24

5
Appendix | Images

Pecm I & II

26

Itaqui

27

Parnaba Complex

28

Natural Gas: Parnaba E&P

29

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.

Thank you.
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