3Q17 Results November, 2017

RISK MANAGEMENT AND CONTINGENCIES • MoU with Eletrobras, seeking a settlement for CTEEP/Eletrobras case

MIGRATION TO NOVO MERCADO• Over 60% of preferred shareholders have approved the Migration to Novo Mercado• Withdrawal Rights of R$ 49.2 million and Migration approved by the Board of Directors

INDEBTEDNESS• Leverage reduction to 2.57x in the Net Debt³/Adjusted EBITDA ratio

PRODUCTIVITY PROGRAM¹• 31% improvement in SAIDI and 63% in ADA vs. 3Q16, generating

a reduction of R$ 101.3 million in operating expenses in the 3Q17

FINANCIAL PERFORMANCE• 71% increase in Adjusted EBITDA² in 3Q17 vs. 3Q16• Net Income of R$ 74 million in 3Q17 vs. R$ 33 million loss in 3Q16

1 – in real terms compared to 2016, excluding pension fund and weighted monthly at the effective rate (IPCA in relation to personnel costs and

IGP-M for other costs); 2 – Adjusted by the Pension Fund Expenses; 3 – Covenant-related debt; 2

3Q17 HIGHLIGHTS

FINANCIAL PERFORMANCE

1 - Excludes Private Pension Expenses (R$ 97.6 m in 3Q16 vs. R$ 97.8 m in 3Q17); 2 – Monthly weighted values at the effective rate (IPCA in

relation to personnel costs and IGP-M for other costs); 3 – Compensation of DIC / FIC / DMIC / DICRI 4

OPEX¹ ( in real terms ) 3Q16 – 3Q17 (R$ million)

Productivity Program exceeds expectation, reaching a R$ 101.3 million reduction in real terms in 3Q17

34

Compensations

50

ADA PMSO

548

17

-18.5%

OPEX 3Q17

446

OPEX 3Q16 real

548

Inflation

0

OPEX 3Q16

R$

-101.3million

Reductions in Fines of 52%, as a result of investments and consequent improvement of SAIDI/SAIFI indicators

ADA with a 63% reduction, showing progress on the strategy to fight bad debt

PMSO: increased productivity due to multitasking teams in network maintenance processes

51 –EBITDA adjusted by Pension Fund Expenses

Adjusted EBITDA¹ 3Q16 - 3Q17 (R$ million)

71% increase in EBITDA¹ due to gains with Productivity Program

Margin: reduction in the captive market, offset by higher tariff (Parcel B)

Regulatory/Tax Effects: mainly changes in tax calculation basis, updating of financial assets, overcontracting effects (3Q16)

Productivity Program: improvement in quality indicators and operational efficiency

R$

+165 million

63

102

+71.0%

Adj. EBITDA 3Q17

397

OPEXMargin and

Regulatory/Tax Effects

Adj. EBITDA 3Q16

232

6

Net Income advances R$ 107 million as a result of the Value Creation Strategy

1 - Net changes in IR/CSLL; 2 - Consider difference of rates between quarters

Net Income¹ 3Q16 – 3Q17 (R$ million)

Better Financial Result is mainly due to the reduction of debt charges and exchange variation related to

Itaipu's energy

Depreciation reflects increase in asset base, due to higher investments

R$

+107 million

741312

-33

Financial Result Net Income 3Q17Depreciation,

Amortiz. and Others²

Pension Plan

0

Adjusted EBITDA

(ex-Pension Plan)

109

Net Income 3Q16

Reduction in Gross Debt by 7% (R$ 253 million) and leverage improvement by 0.37x

734 682 878 720

414 386363

342

79

2022-2028

1,984

186

1,797

2021

1,062

2020

1,241

2019

1,067

2018

1,148

2017

248

168

FUNCESP (Pension Plan) National Currency

Covenants:

Net Debt / Adjusted EBITDA² <3.5x

Adjusted EBITDA² / Financial Expenses> 1.75x

Amortization Schedule³ (R$ million)Net Debt¹ (R$ billion)

Debt Profile 3Q16 3Q17

Average term (years) 4.5 4.2

Effective rate4 13.4% 9.9%

Average spread p.a. (CDI +)5 1.85% 2.09%

Increase in the Average Cost (CDI +) mainly due to new issuances and debt payment in the period

71- Net debt according to Covenant; 2 - Adjusted by Fundação CESP (last 12 months); 3 – Schedule consisting of repayment of principal,

accrued interest and deferred balance; 4 - Average value in the period of total indebtedness; 5 - Only for debt linked to CDI

-0.37x

3T17

3.6

3T16

3.7

2.94x2.57x

Net Debt / Adjusted EBITDA²

Net Debt (R$ million)

MANAGEMENT STRATEGY

Recovery of Quality Indicators

Revenue Management

Customer Satisfaction

Risk Management Governance

Investment and improvement of processes to ensure efficiency

▪ New level of investments in the network:

✓ R$ 942 million of investments planned

▪ Productivity Program1: reduction in OPEX in relation to 2016, in real terms:

✓ 2017: R$ 200 million

✓ 2018: R$ 150 million

✓ 2019: R$ 100 million

✓ MoU with Eletrobras

✓ New amendment to the concession agreement

✓ Overcontracting below regulatory limit2 in 2017 and 2018

✓ Migration to Novo Mercado

A B C

Value Creation Strategy progresses on all pillars:Productivity Program, Risk Management and Governance

91 – Values excluding pension fund and weighted monthly at the effective rate (IPCA in relation to personnel costs and IGP-M for other costs); 2 – 105%

Improvement in quality level indicators, 42% reduction in non-scheduled SAIDI

10

SAIDI- hours (last 12 months) SAIFI - times (last 12 months)

Reference Aneel – 2016: 8.01 hours / 2017: 7.75 hours Reference Aneel – 2016: 5.91 times / 2017: 5.64 times

A

Increase in the Scheduled SAIDI is due to the investment in preventive maintenance and pruning

− Replacement of +21k connectors and extensions, + 111k prunings performed and +1k fault detectors installed

Average Duration of Interruptions registered a reduction of 28%

13.40

-42%

-31%

3Q17

8.68

4.72

3Q16

19.47

14.93

4.55

Non-ScheduledScheduled

-5%

-7%

6.821.20

1.23

3Q16

7.18

5.98

3Q17

5.59

Non-ScheduledScheduled

Revenue Management reduces ADA by 63% in 3Q17 vs. 3Q16

ADA

11

29.5

3Q16

80.8

-44%

-63%

9M17

133.2

9M16

238.2

3Q17

ADA (in R$ million)

Negotiation Portal

• Flexibility for Customers

• 223k negotiations made (9M17)

• R$ 170.4 million negotiated (9M17)

Main InitiativesA

Transformation of the Management Model

• Specialized collector

• Field Team Management and Online Audit

• Process digitalization

Meter Reader as Commercial Agent

• Cutting Process and Renegotiation

• Reduction of 56% in power cutting costs

• 90% of negotiations made by meter readers are paid on the same day

MIGRATION TO NOVO MERCADO

Migration approved in Meeting reaffirms strategy

13

Shareholders ✓

Migration approved by 60.4% of the total

Preferred Shareholders

High approval rating reinforces the perception of

value creation with Migration

359 shareholders exercised their withdrawal

rights, totaling R$ 49.2 million to be disbursed

Board of Directors approved the Migration

to Novo Mercado

Fundamentals of Migration

Superior Corporate Governance

Increased Attractiveness to Investors

Greater Access to Capital Markets

Approvals

Best corporate governance practices

One share, one vote

Possible deleveraging of the Company

Improves investment capacity

Increases stock liquidity

Possible reclassification of stock price

Board of Directors✓

Conclusion of the Migration process takes place in November

Indicative Schedule of Transaction

14

Period of exercise of withdrawal rights

Sept./29 Oct./30

Oct./31

Nov./09

September October November

Sept./12

General Shareholders' Meeting (GSM) / Special Meeting of Preferred Shareholders (SMPS)

Appraisal of the amount of withdrawal rights

Nov./21

Beginning of trading with common shares only and migration to the

Novo Mercado

Nov./6

Payment of withdrawal rights

Board of Directors Meeting to approve the withdrawal rights payment and conclusion of the migration

RISK MANAGEMENT AND CONTINGENCIES

MIGRATION TO NOVO MERCADO

INDEBTEDNESS

PRODUCTIVITY PROGRAM

FINANCIAL PERFORMANCE

15

3Q17 HIGHLIGHTS

Statements contained in this document regarding the business perspective, the

projections of operating and financial results and the growth potential of the

Companies are mere forecasts and were based on management's expectations

regarding the future of the Companies. These expectations are highly dependent

on changes in the market, the economic performance of Brazil, the electric sector

and the international market, and are therefore subject to change.

Investor Relations

E-mail: ri.aeseletropaulo@aes.com

Phone: + 55 11 2195-7048

ri.aeseletropaulo.com.br