1

INSTITUTIONAL PRESENTATION

Financial and Operational Results

June 30, 2012

2

Disclaimer

Statement on Future Declarations:

The forward-looking statements in this report related to the outlook for the business,

estimated financial and operating results and growth prospects of COMGAS are merely

projections and, as such, are based exclusively on management expectations regarding

future performance. These expectations depend substantially on market conditions and the

performance of the Brazilian economy, the business sector and the international markets,

and are therefore subject to change without prior notice.

Company Overview

History

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1872: The British company San Paulo Gas receivesauthorization to explore the concession of public services ofilumination in São Paulo;

1912: The Canadian company Light assumes ownership;

1959: The company is nationalized and renamed CompanhiaPaulista de Serviços de Gás (Comgás);

1968: The joint-stock company is incorporated under the control of the city governmentand is named Comgás;

1984: Comgás is taken over by Companhia Energética de São Paulo (CESP), the state-owned power utility;

1996: The company goes public and is traded on the São Paulo Stock Exchange (Bovespa)beginning in 1997;

1999: PRIVATIZATION: The consortium formed by British Gas and Shell obtain a controlling stake in Comgás;

2010: Comgás is consolidated as Brazil’s largest natural gas distributor responsible for more than 30% of the sales ofnatural gas in the country;

2011: Comgás reached customer 1,000,000.

A Comgás é uma Companhia Regulada ...Comgás Highlights

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Premium asset located in a strategic concession

area

Substantial growth in the residential segment

Diversified client base

Impressive track record: Significant growth with

profibility and sound capital structure

Solid regulatory framework and transparent concession

scheme

Favorable prospects for natural gas in

Brazil

177 Cities

27% of Brazil’s GDP

Área de concessão

Segments (June 2011)

Residential: 1.147 thousand householders

Commercial: 10.9 thousand meters

Industrial: 1.006 meters

Cogeneration : 23 meters

Thermal Generation : 2 plants

NGV: 338 gas stations

Gas Brasiliano

PresidentePresidentePrudentePrudente

AraçatubaAraçatuba

S.J. Rio S.J. Rio PretoPreto

MaríliaMaríliaBauruBauru

CentralCentral(Araraquara)(Araraquara)

RibeirãoRibeirãoPretoPreto

FrancaFrancaBarretosBarretos

Natural GasSPS

RegistroRegistro

SorocabaSorocabaCOMGÁS

Concession Area

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Concession Area Advantages

Pipeline intersection (GASBOL, GASAN, GASPAL)

Short distance to supply (Santos Basin)

High demographic density

Population 29.6 Mi

Homes 8.2 Mi

Vehicles 10.0 Mi

POTENTIAL (approximate data)

Comgás’ main shareholder is Integral Investments, in which BG Group and Shell Group hold 83.5% and16.5% of shares respectively:

Comgás: uma combinação de competências e princípiosComgás: Combination of Strength and Principles

SHELL BRAZIL HOLDING BV

6.34%

INTEGRAL INVESTMENTS BV

71.91%

SHELL GAS BV

16.49%

BG SÃO PAULO INVESTMENTS BV

83.51%

OTHERS(free float)

21.75%

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Operating in Brazil since 1994:Operations in more than 20

countries. Experience in Exploration & Production, Liquefied Natural Gas,

Transmission & Distribution and Power Generation.

Operating in Brazil since 1913: Experiencie in Distribution of

Petroleum Components, Operations in the Gas Sector, Power &

Exploration and Offshore Production.

Regulated framework

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Note: With the opening trading, in 2011, the users with consumption over 300,000 m3/month are considered potentially free.

Market CustomersResidential and Commercial

(small volumes)

Trading and distribution during the concession period

Other Markets Customers (large volumes)

Trading up to 12 years (starting on contract subscription

date) and distribution for the entire concession period

Production and Transportation:

ANP (Federal Parts)

..................

Distribution:

ARSESP (Government Parts)

www.arsesp.sp.gov.br

As a public service provider, Comgás’ activities

are regulated by ARSESP, a government

institution of São Paulo State, which delegated

to Comgás a 30-year term, starting in May 1999

for public service exploration with a one-time

renewal possibility for 20 more years.

REGULATED PRICES AND TARIFFS RULES

Tariff Settlement Process

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Maximum Margin Review

•Considering the WACC over

the Regulatory Asset Base +

Investments

•Operational Costs

•Depreciation

•Sales Volume

Maximum Pre-definedTariffs

(discounts may be applied)

• Initial Tariff Structure

includes:

Tariffs Readjustments

•Annual Margin adjustment

by inflation index (IGPM)

excluding the X Factor and

the K Factor:

•Gas Costs pass through

(comoddity & transport)

every May 31st (or

eventually before, as

defined by the regulator).

In Tariff Reviews, The X Factor and The K Factor

are also Defined

• X Factor: Fixed efficiency factor

to be considered in the PO annual

update. In this 3rd tariff cycle, the

X Factor was set at 0.82 per year.

•K Factor: Adjustment factor that

compensates deviations from the

maximum margin earned

regarding the maximum margin

permitted. The K Factor was set

at 0.009991 R$/m3 in the 4th year

of the 3rd cycle.

The Concession Agreement foresees tariff reviews every 5 years

P gas + P transport +

Maximum Margin Average (P0)

= TariffP0 * (IGPM – X Factor) + K Factor

Tariff review for the 3rd Cycle (2009-2014):

P0 established in 0.3052 R$/m3

Commercialization Margin set at 1.9%

Fornecimento de Gás Natural: CONTRATOSNatural Gas Supply: Contracts

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Daily quantity contracted:

approximately 14.3 million m³/day, besides auction contracts.

Daily quantity demanded:

approximately 13.0 milllion m³/dayduring the 1st semester in 2012.

1999 2011 CAGR (1999 - 2011)

R$ 341mm Net Revenue R$ 4,102mm 23%

1.3 bi m3 Volume 4.8 bi m3 11%

R$ 50mm CAPEX R$ 510mm 21%

2,500 km Network 8,000 km 10%

17 # Municipalities 70 12%

314,034 # Meters 836,222 8%

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Growth since Privatization

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 forecast

1S11 1S12

Industrial Residential Commercial NGV Cogeneration Thermal Generation

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Segments

Volume (in million of m3)

CAGR (00-11)

10.1%

22.6%

19.7%

15.2%

9.8%

8.0%

6.7%

7.0%

3.9%

3.8%

2.3%

0.7%

0.2%

CHEMICAL / PETROCHEMICAL

CERAMICS

PAPER AND CELLULOSE

GLASS / CRYSTALS

METALS / FOUNDRY AND NON

FERROUS

DRINKS / FOOD

AUTOMOTIVE / PNEUMATIC

STEEL SECTOR

TEXTILE / LAUNDRY / DRY CLEANING

OTHERS

PHARMACEUTICAL

ELECTRO / ELECTRONIC

+4.8%

1,676

2,243

2,952

3,418

3,812

4,342

4,761

5,0695,253

4,261

4,910 4,835

2,5362,420

5,159

Industrial Segment: Sector Composition

Santos Basin Pre-Salt

CurrentExpansion

Comgás’ Concession Area

Geographic Expansion Indicated in Business Plan

Expansion activities simultaneously progressing in the cities inside the concession area

Targets for 2009-2014 period:

5.000km of network to be established

282km of network renewal

500k+ clients to be connected

15 working fronts simultaneously

1.000 direct employees and more than

4.000 indirect working on the expansion

Aims for excellence in operational safety

and integrity of the distribution network

Extensive field analysis and selection of

the best opportunities considering:

Distance from existing network

Demographic density

Economic profile and propensity for consumption

Perspective of future development

Potential for integration of various market segments

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Volume (MM/m3)Comgás’ Concession Area

Residential Segment

Key growth strategy for Comgás:

Geographic expansion, capturing the

existing potential and connecting around

100.000 clients per year

Increase average unit consumption by

optimizing and expanding customer base

High potential market, with growth driven by:

New real estate developments

Gas conversions in built residences

Large customer base with more than 1 million

residential clients

Alternative for LPG and electricity

Description Concession Area Potential(1,2)

(1) Potential to be updated by IBGE Census 2010(2) Concession area potential doesn’t consider organic growth(3) Considered in the plan to capture 100,000 clients per year

Apartments

Houses

already connected to NG

customers to be capturedcostumers not connectedmarket to be studied

(MM of households)

6.2

1.5

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Over 45,000 new buildings (launch) to be captured(3)

59%13%8%

20%

2%

13%7%

78%

Industrial Segment

Comgás is present in all of the relevant industries in the concession area;

A diversified customer base with more than 1,000 corporate clients;

A multi-use product: from the production of heat and low-pressure steam to more complexprocesses;

Many advantages compared to other fuels:

No storage requirements

Environmental issues

Guarantee of supply

Low operational costs

Growth Strategy:

Maintain a strong consumer base with future growth in line with growth in GDP / industrialproduction

Approach small and medium enterprises (SMEs) to anchor expansion projects

Bring new industrial corporate clients into the concession area

Description

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Natural gas vehicle (NGV) may be used as fuel for both individual and mass transportation;

Stands out for savings and environmental benefits:

Currently, it is more cost competitive than gasoline and ethanol

Strong economic benefit for heavy users

Comgás is currently working with the government to implement public policies that shouldbenefit the sector:

Fiscal incentives (IPVA reduction)

Public transportation policy

Growth Strategy:

Project in development: use of NGV in public transportation and other heavy users

Description

Natural Gas Vehicle (NGV) Segment

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Other Markets

More than 10.3 thousand clients;

Focus on medium and large establishments;

Growth platform integrated with the expansion ofthe residential segment;

New applications have a high developmentpotential:

Emerging market with high consumptionpotential

Structure dedicated in developing nonconventional application development:acclimatization, commercial cogenerationand generation during peak hours

Commercial Thermal Generation and Cogeneration

Thermal Generation:

Demand depends on the level of thermaldispatch (determined by the government)

Back to back gas contracts

Cogeneration:

Industrial strategic decision aimingefficiency and energy security in themedium and long term

Sustainable growth depends on firm gassupply and price visibility vis-a-viselectricity

Market with a high potential development

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Financial and Operational Highlights

107 177

347 330

549 668

860 925

1,035

838 928

1,107

413

387

1,363 1,182

716

525

588

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1S11 1S12

EBITDA

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Financial Graphics (in million of R$)

CAGR (00-11)

23.7%

NOTE: The calculation of the CAGR is based on the use of previous accountability.

IFRS

Previous Accountability

2,375 2,341

1,676

2,243

2,952

3,418

3,812

4,342 4,761

5,069 5,253

4,261

4,910

4,779

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1S12

Volume

IFRS -6%

PreviousAccountability

+12%

(In thousands of m3)

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Financial Graphics (in million of R$)

CAGR (00-11)

24.2%

NOTE: The calculation of the CAGR is based on the use of previous accountability.

IFRS

Previous Accountability

2,375 2,341

1,676

2,243

2,952

3,418

3,812

4,342 4,761

5,069 5,253

4,261

4,910

4,779

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1S12

Volume

107 177

347 330

549 668

860 925

1,035

838 928

1,107

413

387

1,363 1,182

716

525

588

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1S11 1S12

EBITDA

IFRS -32%

PreviousAccountability

+9%

(In thousands of m3)

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Highlights: 1ST Half of 2012

Continuous focus in the residential segment, 60 thousand new households connected since the

beginning of the year;

Investment of R$ 268 million in the first semester, 20% above 1Q11;

New record in network extensions, 555 km built since the beginning of the year;

Tariff readjustments made in December 2011 and May 2012 contributed to recuperate the current

account balance compensating the increase in the cost of gas;

In February 2012, ARSESP established a mechanism to recuperate the graphic account balance

because of the variation of the price of gas and transportation (ARSESP DELIBERATION Nr. 308);

On May 28, 2012, a Relevant Fact was presented informing that a Sale Contract was signed between

Provence Participações S.A. (controlled by Cosan S.A. Indústria e Comércio) and BG Gas SP

Investments BV, for the sale of 60.1% of indirect participation in Comgás, currently held by BG, for

the total cost of R$3.4 billion. The conclusion of the operation is awaiting ARSESP’s approval and

CADE’s analasis.

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Markets

Note: UDA’s (Householders)

Volume per segment (In thousands of m3)

50,732 40,882 48,400 24.1% 4.8% 91,614 81,340 12.6%

27,899 26,196 27,008 6.5% 3.3% 54,095 51,457 5.1%

946,683 934,538 983,661 1.3% -3.8% 1,881,221 1,926,164 -2.3%

89,712 86,034 82,779 4.3% 8.4% 175,746 174,671 0.6%

70,290 67,679 75,124 3.9% -6.4% 137,969 141,766 -2.7%

1,185,316 1,155,329 1,216,972 2.6% -2.6% 2,340,645 2,375,398 -1.5%

13.0 12.7 13.4 12.9 13.1

162,650 32,218 6,325 N/A N/A 194,868 44,643 336.5%

1,347,966 1,187,547 1,223,297 13.5% 10.2% 2,535,513 2,420,041 4.8%

2Q12 1Q12 2Q11∆

2Q12/1Q12

∆

2Q12/2Q111H12 1H11

∆

1S12/1S11

RESIDENTIAL

COMMERCIAL

INDUSTRIAL

COGENERATION

TOTAL

NGV

TOTAL

MMm³/day*

THERMAL GENERATION

Meters per segment

855,988 840,915 790,047 1.8% 8.3%

1,147,384 1,116,688 1,031,610 2.7% 11.2%

10,855 10,595 10,014 2.5% 8.4%

1,006 1,010 998 -0.4% 0.8%

2 2 2 0.0% 0.0%

23 23 24 0.0% -4.2%

338 347 363 -2.6% -6.9%

868,212 852,892 801,448 1.8% 8.3%

jun/11

RESIDENTIAL

NGV

COGENERATION

THERMAL GENERATION

jun/12∆

jun12/mar12

INDUSTRIAL

COMMERCIAL

NUMBER OF UDAs*

∆

jun12/jun11mar/12

* Not considering Thermal Generation

80%

7% 6% 3% 2% 2%

60%

4% 3%

25%

8%

0%

Industrial Cogeneration NGV Residential Commercial Thermal Generation

74%

7% 5% 4% 2%8%

54%

4% 3%

28%

9%

1%

Industrial Cogeneration NGV Residential Commercial Thermal Generation

Volume Margin

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Volume x Margin

1st Semesterof 2011

1st Semester of 2012

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Financial Performance

In thousand of R$

1,278,522 1,120,356 1,011,469 14.1% 26.4% 2,398,878 1,936,814 23.9%

-1,007,191 -801,415 -705,066 25.7% 42.9% -1,808,606 -1,348,991 34.1%

271,331 318,941 306,403 -14.9% -11.4% 590,272 587,823 0.4%

-101,377 -95,697 -85,203 5.9% 19.0% -197,074 -173,628 13.5%

-1,197 -4,516 -120 -73.5% 897.5% -5,713 -738 674.1%

168,757 218,728 221,080 -22.8% -23.7% 387,485 413,457 -6.3%

-72,153 -67,124 -58,756 7.5% 22.8% -139,277 -116,297 19.8%

-47,632 -39,749 -42,875 19.8% 11.1% -87,381 -74,552 17.2%

48,972 111,855 119,449 -56.2% -59.0% 160,827 222,608 -27.8%

36,733 73,553 92,344 -50.1% -60.2% 110,286 160,587 -31.3%

155,369 53,916 70,201 188.2% 121.3% 209,285 102,060 105.1%

318,874 268,735 294,800 18.7% 8.2% 587,609 525,234 11.9%

140,216 110,077 139,614 27.4% 0.4% 250,293 230,017 8.8%

EBITDA

NET INCOME

Financial Results

OPERATIONAL RESULT

NET INCOME

Normalized by Current Account (unaudited figures)

CURRENT ACCOUNT

Cost of Assets and / or Services Rendered

GROSS BALANCE

Expenditures with Sales, General and Adm.

Other Operational Results

EBITDA

Depreciation and Amortization

1S12 1S11∆

1S12/1S11

NET SALES

2Q12 1Q12 2Q11∆

2Q12/1Q12

∆

2T12/2T11

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Financial Indicators

11,32 11,02 10,04 11,32 10,04

1,23 2,46 3,08 1,84 2,68

1,53 1,55 1,28 1,53 1,28

3,01 2,73 1,49 3,01 1,49

0,37 0,33 0,24 0,37 0,24

0,56 0,62 0,57 0,56 0,57

21,2% 28,5% 30,3% 24,6% 30,3%

2,9% 6,6% 9,1% 4,6% 8,3%

13,2% 19,5% 21,9% 16,2% 21,3%

3,1% 6,5% 9,4% 4,6% 8,1%

10,8% 22,3% 30,7% 16,3% 26,7%

Normalized by Current Account (unaudited figures)

35,9% 35,4% 40,7% 35,6% 39,1%

11,9% 10,5% 13,8% 11,3% 10,8%

27,1% 25,8% 29,2% 26,5% 24,4%

2Q12 1Q12 2Q11 1H12 1H11

Equity Per Share($)

Earnings Per Share ($)

Net Debt over Equity (x)

Net Debt over EBITDA (x)

Short Term Debt over Total Debt (x)

Current Ratio (x)

Gross Margin (%)

Net Margin (%)

EBITDA Margin (%)

Return on Assets (%)

Return on Equity (%)

Gross Margin (%)

Net Margin (%)

EBITDA Margin (%)

NOTE:

Annualized Indicators (LAJIDA from the last 12 months).

528469

264

15329

12

-55

-157-230 -198

-128-5

150 204

360

dec-08 mar-09 jun-09 sep-09 dec-09 mar-10 jun-10 sep-10 dec-10 mar-11 jun-11 sep-11 dec-11 mar-12 jun-12

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Regulatory Current Account Balance Evolution

Balance of Gas Recoverable/ To be Passed On: Cash-Effect

R$

mill

ion

R$ 156 millions

made

R$ 54 millions

made

R$ 70 millions

made

725

277 212

113 113

78

224

38

64 75 235

2012 2013 2014 2015 2016 2017 forward

Local Currency Foreign Currency

Estrutura de EndividamentoDebt Structure

27

Debt (1) (R$ thousand) Jun 2012 Dec 11 Debt Amortization Schedule(1) (R$ million)

Debt Composition: Short Term/ Long Term Debt Composition

(1) Includes Debendetures and Derivatives

(2) EBITDA from the last 12 months

Debt in foreign

currency 100% and

fully hedged.

501

250177 188

235

803Short Term Debt 803,540 421,104

Long Term Debt 1,350,925 1,452,957

Total Debt 2,154,465 1,874,061

(-) Cash 79,544 41,110

(=) Net Debt 2,074,921 1,832,951

EBITDA (2) 690,311 716,284

Net Debt/EBITDA 3.0 2.6

Short Term Debt/Total Debt 0.4 0.2

Jun 12 Dec 11

Short Term 37%

LongTerm 63%

Short Term 22%

Long Term 78%

EIB

25%

BNDES 44%

Others 31%

2.5 2.6 2.93.3 3.6 3.9

4.5 4.9 5.15.7

6.26.9

8.0 7.4 8,6

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jun 11 Jun 12

100

229200

230276

474426

397 403 406 405

509

268

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 jun/12

Investimentos

Main Projects:NETWORK EXTENSIONS (In thousands of Km):Taubaté

São José dos Campos II

Guarulhos

Mogi das Cruzes

Osasco II

Itaquera

New projects:

Diadema I

Tucuruvi

Investments

28

+ 1,200 KM built in the last 12

months

Over R$ 4.2 billion invested during the period

R$ million

223

+20% 2Q11 x 2Q12

1S1

1

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Shareholder Remuneration (in millions of R$)

PAY OUT

Previous Accounting

PAY OUT IFRS

NOTE: Payout calculated based on remuneration declared by the Company during the period.

11 1627 25

303 330 334275 268

427 450

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

17% 15%26%

10%

95%77% 75%

53%73%

104%92%

74%

190%

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Market Performance (June 2012)

Financial Volume: Preferred Shares (CGAS5)

Ibovespa-4.23%

Comgás PNA-0.69%

Comgás ON- 9.41%

Investor Relationsinvestidores@comgas.com.brwww.comgas.com.br/en/investors

ROBERTO LAGE CFO and

IRO

PAULO POLEZITreasury and

Investor Relations

RENATA OLIVAInvestor Relations

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

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