3Q09 ResultsNovember, 2009

3Q09 main highlights

• 3rd Trimester 2009

– 1.2% increase in captive market consumption

– Ebitda totalized R$ 445 million, 15.5% above previous year

– Net earning totalized R$ 235 million, 58.7% above the 3Q08

– Aneel authorized a +14.88% average tariff readjustment, applicable from July,4 2009 on

– First installment of the agreement with São Paulo’s municipality amounting R$ 117.8 million, on August, 10 2009

• Subsequent Events

– Application to the Tax debt refinancing program (“REFIS”) with a P&L benefit of approximately R$ 250 million in 4Q09

– Award from Carta Capital magazine for most admired electric distributor in Brazil

– National Quality Award (PNQ), Company recognized as a reference in management by National Quality Foundation

– AES Brasil was chosen as one of the 20 model-companies by the Guia Exame the Sustentabilidade (Exame’s magazine

Sustainability Guide)

– AES Eletropaulo is among the three finalist of the IASC 2009 Prize (Aneel’s Index of Clients’ Satisfaction) in the

category of companies above 400,000 consumption units in the Southeast region

Captive market grew 1.2% on 3Q09

-7.6%

Free Clients

1,874 1,731

+1.2%

Captive Market

8,635 8,742

3Q093Q08Average Tariff of Sold Energy2 – R$ / MWh

+9.2%

275301

Residential

+6.0%

221 235

Others

+7.3%

267286

Captive Market

+7.8% -0.3%+1.0%-10.9%

Residential Industrial Commercial Public Sector and Others

Total Market

Consumption Evolution - (GWh)1

6682,5411,735

3,691

10,509

651

3,9781,545

2,567

10,473

3Q093Q08

3

276 289

Commercial

+5.5%

254 268

Industrial

+22.0%

64 78

TUSD

-2.5%

+4.7%

1 – Own consumption not considered 2 – Captive market + Tusd

Most important consumption classes

1 – Own consumption not considered 4

Residential - (GWh)

1Q09

3,494

2Q09

3,742

3Q09

3,978

+4.7%

9M08

10,70811,214

9M09

+3.2%

Commercial - (GWh)

Industrial - (GWh)

1Q09

1,327

2Q09

1,465

3Q09

1,546

-11.1%

9M08

4,8784,337

9M09

1Q09

2,657

2Q09

2,625

3Q09

2,567

9M08

7,6037,850

9M09

Captive Market¹ - (GWh)+1.9%

41Q09

8,118

2Q09

8,493

3Q09

8,742

+1.0%

9M08

25,10425,353

9M09

0

2

4

6

8

10

1-J

an

19-J

an

6-F

eb

24-F

eb

14-M

ar

1-A

pr

19-A

pr

7-M

ay

25-M

ay

12-J

un

30-J

un

18-J

ul

5-A

ug

23-A

ug

10-S

ep

28-S

ep

3

5

7

9

11

13

15

1-J

an

19-J

an

6-F

eb

24-F

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14-M

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19-A

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28-S

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2

4

6

8

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19-J

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24-F

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14-M

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19-A

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7-M

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25-M

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12-J

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30-J

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18-J

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5-A

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23-A

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10-S

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28-S

ep

10

15

20

25

30

1-J

an

19-J

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6-F

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24-F

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14-M

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1-A

pr

19-A

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7-M

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25-M

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12-J

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30-J

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18-J

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5-A

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28-S

ep 10

14

18

22

26

30

1-J

an

19-J

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6-F

eb

24-F

eb

14-M

ar

1-A

pr

19-A

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7-M

ay

25-M

ay

12-J

un

30-J

un

18-J

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5-A

ug

23-A

ug

10-S

ep

28-S

ep

5

Previous year Actual Year

Industrial SectorAuto Sector Chemical

Metallurgical Rubber & Plastic Metal

Participation: 8.0% Participation: 7.1%

Participation: 2.3%Participation: 2.6%Participation: 4.0%

6

Collection rate and energy losses

97.899.599.1

200820072006

5.5 5.1

6.5 6.5

11.612.0

5.0

6.5

11.5

Commercial Losses Technical Losses1

3Q09

6.5

11.8

3Q08

6.5

11.6

200820072006 3Q082

101.3

3Q092

97.45.35.2

Collection Rate – % over Gross Revenue Losses – % last 12 months

• Collection rate (LTM): 97.9% (3Q08) x 101.4% (3Q09)• Cuts and Reconnection – Monthly Average (3Q08 X

3Q09) – Cuts: increase from 34,000 to 86,000– Reconnections: increase from 33,000 to 57,000

• Past due bill Credit Report (3Q09 Average): 427,000

• Fraud and Illegal Connections (3Q09)– 78,000 inspections and 10,000 frauds

detected– 25,000 illegal connections regularized

1 - Current Technical Losses used retroactively as reference 2 – Collection rate following the new methodology of calculation

7

SAIDI & SAIFI

9.208.907.87

2006 2007 2008

SAIDI (hours) SAIDI Aneel Target

11.01

3Q09³

11.81 11.34 10.92

2006 2007 2008 3Q08³

5.64 5.205.52

SAIFI (times) SAIFI Aneel Target

5.36

8.61 8.49 8.41

3o3o 3o 1o

9.19

3Q08³ 3Q09³

5.78

5º 1o

SAIDI¹ SAIFI2

• SAIDI Aneel Target 2009: 10.09 hours • SAIFI Aneel Target 2009: 7.87 times

1 – System Average interruption Duration Index 2 – System Average Interruption Frequency Index 3 - LTM Source: ANEEL, AES Eletropaulo and ABRADEE

ABRADEE ranking position among the 28 utilities with more than 500 thousand customers

Investments

8

Paid by customers

2006 2007 2008 2009e

301364

410

69378433

457

77

Capex

47

455

54

509

269

305

36

9M08

298

32426

9M09

45%

22%

16%

4%4%

8%

CAPEX – R$ million Investments 9M09

Customer service / System expansion

Paid by the clients

Losses recovery

Maintenance

IT

Others

Gross Revenue

Deductions to Gross RevenueNet Revenue

3Q08 3Q09

+7.7%

+9.0%

1,104

1,961

3,065

1,228

2,112

3,340

9

9M08 9M09

+5.7%

+6.4%

3,089

5,540

8,6293,329

5,855

9,184

Gross Revenue - R$ million

• Market comparison (3Q09 x 3Q08)

– +14.88% tariff readjustment from 07/04/2009

– Higher captive consumption between periods (+1.2%)

Operating expenses

PMS2 and Other Expenses

+4.6%

340

1,240

1,580

264

1,388

1,652

Energy Supply and Transmission Charges

10

3Q08 3Q099M08 9M09

+8,0%

901

3,479

4,380

919

3,760

4,678+6.8%

• Price per MWh Var. % (3Q09 x 3Q08)Tietê: 3Q08: R$ 149 3Q09: R$ 152 1.53%Itaipu: 3Q08: R$ 89 3Q09: R$ 92 3.37%Auctions: 3Q08: R$ 72 3Q09: R$ 87 20.83%Total AverageTariff: 3Q08: R$ 100 3Q09: R$ 108 8.00%

Operating Costs and Expenses1 - R$ million

1 - Depreciation not included 2 - Personnel, Material and Services

11

-27.9%

86

97

157

85

4

175

264

340

+11.5%

75

46

55

74

175157

58

24

31

32

35

4

97

15

33

(43)

-95.9%

Operating expenses evolution

PMS1 and Other Expenses - R$ million Personnel - R$ million Other Expenses - R$ million

11

3Q093Q08 3Q093Q08 3Q093Q08

Personnel and Pension Fund

Material and Third Party Services

Other Expenses

Personnel

Pension Fund

Labor Lawsuits

1 – Personnel, Material and Services 2 - Indemnification, Losses, Publicity, Banking Fees, IPTU, among others3 – Allowance for doubtful accounts

ADA3 and Write-Off

Provisions and Contingencies

Others2

12

3Q08

340

3Q09

264

Pension Fund

22

ADA1

And Write-

Off

Provisions and Contingencies

(19)

Others2

1

-22.3%

AgreementPMSP

(77)

(1)

Material and

Services

(2)

Operating expenses evolution

Operating Expenses – R$ million

1 - Allowance for doubtful accounts2 - Leasing and Rents, indemnifications, Losses, Publicity, Banking Fees, IPTU, among others

13

445

(148)151

385

+15.5%

20 (22)77 (17)

Variation of Ebitda

Ebitda – R$ million

3Q09Energy Supply and

Transmission Charges

Net Revenue

3Q08 Provisions and

Contingencies

Pension Fund

AgreementPMSP¹

Others²

1 - Agreement with the municipality of São Paulo2 - Personnel, Material, Third Party Services, ADA, Losses, among others

3Q08 3Q09

(67)

8

14

9M08 9M09

(102)

(39)

3Q09 x 3Q08 results

Financial Result - R$ million

• Average Selic:

– 12.9% (3Q08) x 8.8% (3Q09)

• Average balance of cash investments:

– R$1,432 million (3Q08) x R$ 1,082 million (3Q09)

• R$ 39.7 million financial income from part of the agreement with the municipality of São Paulo

235148

3T08 3T09

15

538

496

9M08 9M09

Net Income - R$ million

3Q09 x 3Q08 results

• Tariff readjustment of 14.88% in July, 2009

• Positive effect of R$ 76.6 million from the agreement with the municipality of São Paulo

• Dividends distribution of R$ 322.7 million regarding the first half of 2009

• Second installment of the 2008 complementary dividends to be paid in December 10, 2009 in the amount of R$ 307.3 million

+8.5% +58.7%

R$ 297 million paid as dividends in 3Q09

• The Company keeps its cash invested on Certificates of Deposit (CDs) and Government Notes, with average profitability of 102.6% of CDI on 3Q09

3Q08 4Q08 1Q09

1,454 1,373 1,536

613 491 301

(107) (126) (104)

(107) (37) (113)

(21) (40) (184)

(32) (46) (58)

(68) (80) (119)

(359) -

(81) 162 (278)

1,373 1,536 1,258

-

16

2Q09

1,258

448

(113)

(45)

(54)

(56)

(83)

(269)

989

(366)

3Q09

989

798

(116)

(98)

(35)

(53)

(45)

155

1,143

(297)

Managerial Cash Flow – R$ million

Initial Cash

Operating Cash Flow

Investments

Net Financial Expenses

Net Amortizations

CESP Foundation

Income Tax

Dividends

Free Cash Flow

Final Cash

Debt Profile

17

2006

3.7

2007

3.0

2008

2.5

2.1x

1.3x 1.2x5.7

6.8 7.1

CDI²

2.7

1.5x

3Q09

7.3

2.9

3Q08

1.4x

7.1

14.1% 14.7% 15.4% 14.8% 13.9%

2006

93.2%

2007

121.8%

2008

123.9%

3Q09

116.5%

3Q08

103.4%

Net Debt Average Cost2 and Average Term (Principal)

Net Debt (R$ billion) Net Debt/Adjusted Ebitda¹

1 - Accumulated 12 Months Adjusted EBITDA 2 – Brazil’s Interbank Interest Rate

Average Term - Years Effective Rate

Sustainable amortization schedule

• 99.7% of total debt in local currency

• 0.3% of total debt in foreign currency (R$ 10 million): 98% protected by hedge

1 - FCesp = Pension Fund2 – Exchange rate on 09/30/2009 – US$ 1.00 = R$ 1.7781 18

10

2009

341

524250 250 250

50 125375

78

62 66 70

75 80

1,532

2010 2011 2012 2013 2014 2015 2016-2028

Amortization Schedule – Principal – R$ million

Local Currency (ex FCESP)

FCESP1

Foreign Currency²

Capital market

19

2006 2007 2008

7,508

26,066 25,677

AES Eletropaulo2 X Ibovespa X IEE

IBOVIEEELPL6

9M09

21,187

90

110

130

150

170

dec-081 feb-09 apr-09 sep-09

9M0963.9%63.8%

46.0%

• A) 02/25/2009 – Finsocial and São Paulo municipality

agreement

• B) 04/16/2009 – Public Consultation of Tariff Reset

• C) 06/16/2009 – Second Periodic Tariff Reset Revision

mar-09 may-09jan-09

AA

BBCC

jun-09 jul-09 aug-09

Average Daily Volume2 - R$ thousand

1- Index –12/30/08 = 100 2 - Preferred shares class B adjusted by the dividends declared in the related period

The statements contained in this document with regard to the business prospects, projected operating and financial results, and growth potential are merely forecasts based on the expectations of the Company’s Management in relation to its future performance.Such estimates are highly dependent on market behavior and on the conditions affecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they are therefore subject to changes..

3Q09 Results