results presentation 2 q08

111

COMPANHIA DE GÁS

DE SÃO PAULO

Financial Results for

Second Quarter

2008

222

Highlights: First Half 2008

Volume sold of 1.3 billion in 2Q08 and 2.7 billion Cu.M. in 1H08, increase of 7.8% related to 2Q07 and 11.2%

related to 1H07;

Net Revenue of R$ 961 million in 2Q08 and R$ 1,804 million in the first half, growth of 21.9% and 18.8%

when compared to 2Q07 and 1H07 respectively;

Net Income of R$ 124 million in 2Q08 and R$ 244 in 1H08, 2.7% and 15.0% of growth in 2Q07 and 1H07

respectively;

EBITDA of R$ 246 million in 2Q08 and R$ 487 million in the first half, increase of 4.8% related to 2Q07 and

13.5% related to 1H07;

Over 700 thousand clients achieved with attending more than 39 thousands additional residential units in

the first half of 2008, reflecting the focus of the company in the expansion of residential market;

R$ 275.4 million in dividends declared to 2008, related to 2007 results, in which R$ 150 million was paid in

Jun/08.

333

Contracts:

Natural Gas Supply – Year 2008

• DCQ: 0.6 MM Cu.M./day

• Contract Expiration: May 2011

Commodity:

Oil Basket (Brent)

+ Exchange Rate

Transport:

USA Inflation (CPI)

TCQ CONTRACT: Natural Gas coming from Bolivia


• Contract Expiration: July 2019

BG CONTRACT: Natural Gas coming from Bolivia

FIRM GSA “NOVO CONTRATO FIRME”


• Contract Expiration : December 2012

70%

Oil Basket (Brent) +

Exchange Rate

30%

Brazilian PPI (IGPM)

FIRM ENERGY GSA “CONTRATO FIRME FLEXÍVEL”


• Contract Expiration: December 2012

PREFERENCIAL GSA “CONTRATO INTERRUPTÍVEL”

• DCQ: 0 to 1.5 MM Cu.M./day

• Contract Expiration: December 2010

PRICE:

70%

Oil Basket (Brent) +

Exchange Rate

30%

Brazilian PPI (IGPM)

FIRM

444

Type of Contracts:

Natural Gas Supply – Year 2008

For the Firm GSA (“Contrato Firme”), the business model is the traditional one: Comgás buys natural gas from Petrobras and

distributes to existing markets receiving its distribution margin. Natural Gas distribution couldn’t be interrupted.

In Firm Energy GSA (“Contrato Firme Flexível”) model, customer has the guarantee of operational continuity, once the gas

supply interruption will only happen after Oil Distribution Company delivers an alternative fuel at customer installation. Beyond

this guarantee, customer does not take the risk of fuel alternative additional costs related to natural gas. Petrobras will bear those

cost. Under this agreement, gas can be interrupted by power plant dispatch, technical restriction and major force affecting the

gas system. A government measures is not applicable in this case Comgás will manage gas supply interruption and alternative

supply by Oil Distribution Company, receiving its distribution margin for this service as if there was the continuity of natural gas

supply. In this modality, customer interruption produces only the operational conversion to the alternative fuel. Two business

structures were analyzed to make viable the implementation of such agreement and the more adherent to the Comgás reality

relies on the above-explained option.

For the Preferential GSA, (“Contrato Interruptível”) the business model is based on a call for Comgás to interrupt the gas flow

by Petrobras upon any power plant dispatch called by ONS (Electricity National Grid Operator) in area of influence of the gas

pipeline system (West, South and Southeast regions). This is the unique situation where Petrobras can limit molecule flow to

Comgás under this agreement. In case of interruption, Comgás must reduce market demand accordingly to avoid penalties and

interrupted customers must revert to alternative fuel with no financial compensation either by Comgás or Petrobras. In case of

non-availability of the alternative in the market, the risk is only and exclusively of the customers.

555

Comgás: Sales by Segment

In thousand Cu.M.

* MM Cu.M./day excluding thermal generation

2Q08 1Q08 2Q07 D

2Q08/1Q08D

2Q08/2Q07 1H08 1H07D

1H08/1H07

34,041 27,571 29,701 23.5% 14.6% Residential 61,612 53,822 14.5%

24,742 23,375 24,322 5.8% 1.7% Commercial 48,117 46,963 2.5%

1,004,294 965,472 1,007,124 4.0% -0.3% Industrial 1,969,766 1,957,694 0.6%

72,414 133,988 152 -46.0% N.A. Thermal Generation 206,402 941 N.A.

78,547 77,419 46,310 1.5% 69.6% Cogeneration 155,966 99,402 56.9%

138,015 135,067 147,074 2.2% -6.2% NGV 273,081 282,530 -3.3%

1,352,053 1,362,892 1,254,683 -0.8% 7.8% 2,714,944 2,441,352 11.2%

14.1 13.5 13.8 MM Cu.M./day* 13.8 13.5

666

Comgás: Meters by Segments

* UDAs (Householders).

Jun-08 Mar-08 Jun-07D

Jun08/Mar08D

Jun08/Jun07

588,708 574,435 531,212 Residential 2.5% 10.8%

723,271 700,782 643,153 Number of UDAs * 3.2% 12.5%

8,662 8,567 8,441 Commercial 1.1% 2.6%

1,005 992 982 Industrial 1.3% 2.3%

2 2 2 Thermal Generation 0.0% 0.0%

19 16 12 Cogeneration 18.8% 58.3%

396 391 370 NGV 1.3% 7.0%

598,792 584,403 541,019 2.5% 10.7%

777

Volume per Segment

MM Cu.M.

2,441 2,715

+ 11.2%

80.2%72.6%

2.2%

2.3%

1.9%

1.8%

11.6%

10.1%

4.1%

5.7%

0.0%

7.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H07 1H08

Thermal Generation

Cogeneration

NGV

Commercial

Residential

Industrial

888

Gross Revenue

R$ thousand

+ 17.0%

1,921,809 2,247,624

75.4% 72.5%

8.3%8.4%

4.1%3.7%

9.4%8.5%

2.8%4.2%

0.0% 2.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H07 1H08

Thermal Generation

Cogeneration

NGV

Commercial

Residential

Industrial

999

Margin per Segment

R$ thousand

558,569 661,041

+ 18.3%

66.0% 65.2%

18.7% 18.6%

7.7% 7.0%

5.6% 5.2%

2.0% 3.0%0.0% 1.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H07 1H08

Thermal Generation

Cogeneration

NGV

Commercial

Residential

Industrial

101010

Comgás: Financial ResultsR$ thousand

13.5%429,363487,309EBITDA4.8%1.8%234,600241,532245,778

15.0%211,962243,689Net Income2.7%3.3%120,496119,890123,800

10.3%-26,805-29,567Non Operating Result16.0%4.8%-13,039-14,440-15,127

16.5%315,389367,449Operating Income5.0%1.5%176,309182,392185,058

-11.6%-62,338-55,086Financial Results-13.3%0.1%-31,799-27,524-27,562

25.4%-51,636-64,774Depreciation and Amortization25.2%4.9%-26,492-31,616-33,158

18.9%-180,891-215,158Selling, General and Administrative Expenses28.8%23.8%-92,426-96,155-119,002

14.2%558,618637,693Gross Income10.3%8.3%300,534306.071331.622

21.4%-960,394-1,166,347Cost of Goods Sold and/or Services

Rendered29.0%17.3%-487,921-536,694-629,653

18.8%1,519,0121,804,040Net Sales Revenue21.9%14.1%788,455842,765961,275

2Q08 2Q071Q08D

1H08/1H07

D

2Q08/1Q081H08 1H07

D

2Q08/2Q07

111111

Comgás: Financial Indicators

Note:

(1) Results achieved during the period were annualized

(2) Note: In relation to Net Income per Thousand Shares, it is worth highlighting that from October 2, 2007, the shares started being traded grouped at the ratio of 100 to 1.

This grouping was used to calculate the pro-forma value of the Net Income per Share in the 2Q07 and 1H07.

2Q08 1Q08 2Q07 1H08 1H07

8.3 7.3 8.5 Equity per share ($) 8.3 8.5

1.0 1.0 1.0 Earnings per share ($) 2.0 1.8

142.3% 145.2% 106.2% Net Debit / Equity (%) 142.3% 106.2%

0.7 0.6 0.8 Current Ratio (x) 0.7 0.8

34.5% 36.3% 38.1% Gross Margin (%) 35.3% 36.8%

12.9% 14.2% 15.3% Net Margin (%) 13.5% 14.0%

25.6% 28.7% 29.8% EBITDA Margin (%) 27.0% 28.3%

14.2% 14.8% 16.1% Return on Assets (%) 13.9% 14.2%

49.5% 54.7% 47.1% Return on Equity (%) 48.7% 41.4%

121212

Dividends Paid

(c) Intermediate dividends over retained earnings

(b) Dividends referring to previous year

(a) Interpolate dividends over the current year result

Also declared to be paid

in Aug/08 and Nov/08.

R$ MM

153(b)

100(c)

50(a)

152(b)

178(a)

120(b)

59.5(b)

46(a)

59.4(b)

49(a)

150(b)

10% 77%95%26%15%17% 75% PAYOUT

62.7(b)

62.7(b)

131313

100

229 200

230

276

474

426 397

187

2000 2001 2002 2003 2004 2005 2006 2007 1S08

Investments – 2000 to Jun08

Over R$ 2.5 billion invested in the period

Network Extension:

Jun/07: 4,933 km’s

Jun/08: 5,464 km’s

Main Projects:

Campinas Project

Castelo Branco Project

Santos/ São Vicente Project153

1H

07

CAPEXR$ MM

CAPEXCAPEX

1H08

141414

Investor Relations

Companhia de Gás de São Paulo – COMGÁSwww.comgas.com.br/en/investors/

Roberto Lage

CFO and IRO

Patricia Sonageri

Treasury and Investor Relations

Renata Oliva

Investor Relations

Rua Olimpíadas, nº 205, 10º andar - Vila Olímpia - CEP 04551-000 / São Paulo - SP - Brazil

results presentation 2 q08

Business