4Q12 Results

February, 2013

2012 Highlights

Investments of R$ 831 million in 2012, a 12% increase in comparison with 2011

D f 19% i SAIDI d 15% i SAIFIOperationalOperational

Decrease of 19% in SAIDI and 15% in SAIFI

1.0% increase in energy consumption

Gross revenues totaled R$ 15,314 million, a 0.5% increaseFinancialFinancial $ , ,

Ebitda of R$ 656 million in 2012, a reduction of 77%

Net income of R$ 108 million, a 93% decrease

FinancialFinancial

O J 24th 2013 it li d th i d f th t di t iff i b d th E C t On January 24th, 2013, it was applied the index of the extraordinary tariff review based on the Energy CostsReduction Program, regulated through the Provisional Measure 579, converted into Law No. 12,783 in January14th, 2013. The average tariff reduction is estimated in 20%, effective from January 24th, 2013

RegulatoryRegulatory

.DividendsDividends The Management proposes proceeds distribution in the amount of R$ 55 million, representing 25% of 2012

distributable income plus interest on equity, composed of R$ 0.31 per common share and R$ 0.34 per preferredshare

th t

2

Eletrobrás CaseEletrobrás Case In February 21th, 2013, State Court published decision in favor of AES Eletropaulo, revoking the decision of 1st

instance of December 12, 2012

2012 Highlights

Safety: 19% drop in accidents with employees and contractors, being recorded one fatality with contractors and

19% decrease in fatal accidents with the population

I ti d E ll f C t S ti f ti t ti f ti i d h d 80 6% i th

SocialSocial

Innovation and Excellence for Customer Satisfaction: customer satisfaction index reached 80.6% in the

Abradee research, the highest since the survey was started

Development and Enhancement of Communities: investment of R$ 122 million in social projects, energy

efficiency and legal access to electric power, benefiting about 1.7 million peopleefficiency and legal access to electric power, benefiting about 1.7 million people

Efficient Use of Energy Resources: R$ 44 million invested in 520 units - such as hospitals, schools and public

buildings, generating efficiency and having their electricity consumption reduced by 38,846 MW

EnvironmentEnvironment

.

National Quality Award - PNQ 2012, of Fundação Nacional da Qualidade – FNQ

ISE- Corporate Sustainability Index of BM&FBovespa - 2012/2013 - portfolio for the 8th consecutive year

Brazil's most admired company, for the fourth consecutive year, in the category "Electricity Supply" award

AwardsAwards

sponsored by the magazine Carta Capital

Child Award, Fundação Abrinq/ Save the Children, for attending to children up to 6 years in the Centro deEducação Infantil Luz e Lápis

Guia Exame de Sustentabilidade: AES Brasil group was recognized by Exame magazine as one out of

3

Guia Exame de Sustentabilidade: AES Brasil group was recognized, by Exame magazine, as one out oftwenty model companies in sustainability

.

Growth in consumption due to better performance at residential and commercial

Consumption evolution (GWh)¹

16,408 11,614 36,817 45,10117,029 11,815 37,570 45,557

+3.8% -3.2% +1.7% +4.4% +2.0% -3.6% +1.0%

5,996

8,284

5,803

7,987

2,799 2,922

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

41 – Own consumption not considered

2011 2012

SAIDI below regulatory limits and in its lowest level since 2006

SAIDI¹ (last 12 months) SAIDI1 (LTM)

its lowest level since 2006

-17%10.09 9.32 8.68 8.67 8.49

11.86 10.60 10.368.35 8.23

9.87 8.23

2009 2010 2011 2012 jan/13 jan/12 jan/13

► ANEEL Reference for 2012 SAIDI: 8.49 hours

SAIDI (hours)SAIDI (hours)SAIDI Aneel Reference

5

► ANEEL Reference for 2012 SAIDI: 8.49 hours

1 - System Average Interruption Duration IndexSource: ANEEL and AES Eletropaulo

SAIFI remains below regulatory limits

SAIFI¹ (last 12 months) SAIFI1 (LTM)

7 87

-15%

7.87 7.39 6.93 6.87 6.64

6.17 5.46 5.45 4.65 4.55 5.37 4.55

2009 2010 2011 2012 jan/13 jan/12 jan/13

► ANEEL Reference for 2012 SAIDI: 6.64 times

SAIFI (times)SAIFI Aneel Reference SAIFI (times)

6

► ANEEL Reference for 2012 SAIDI: 6.64 times

1 - System Average Interruption Duration IndexSource: ANEEL and AES Eletropaulo

Losses level below the regulatory reference for the 3rd Cycle of Tariff Reset

Losses (last 12 months) Regulatory Reference² - Total Losses (last 12 months)

11 8 10.6 10.3 9.8 9.4

5.3 4.4 4.0 4.1

11.8 10.9 10.5 10.2

6.5 6.5 6.5 6.1

2011/2012 2012/2013 2013/2014 2014/20152009 2010 2011 2012

Technical Losses ¹ Non Technical Losses

71 – In January 2012, the Company improved the assessment of the technical losses. As a consequence of this improvement, technical losses calculated are in a level of 6.1%. 2 – Values estimated by the Company to make them comparable with the reference for non-technical losses determined by the Aneel

Investments focused on system expansion, maintenance and quality of client services

4Q12 2012

R$ 831 millionR$ 252 million

Investments (R$ million) Investments (R$ million)

831

59

63

711

R$ 831 millionR$ 252 million

216

2836600 

700 

800 22

35

26

739831

647

72

9

32+21%

213

196 35

108

200

300 

400 

500 

717796

621

69209

252

Maintenance

72

1

213

0 

100 

200 

2011 2012 2013(e) 4Q11 4Q12

203 244

Client Service

System Expansion

Losses Recovery

Own Resources Paid by the clients

IT

Paid by the Clients

Others 81 – Maintenance capex is the investment s made for the grid modernizationand improvement in quality of service

Gross revenues reflects expansion in residential and commercial and new tariff

Gross Revenues (R$ million)

+0.5%

5.405 5.354

15.240 15.314

1 3 3 1 308

3.838 3.885+1.2%

9.813 9.887

23 72

2.453 2.556

23 721.373 1.308

2011 2012 4T11 4T12Net revenue ex‐construction revenue

9

Construction revenues

Deduction to Gross Revenue

Higher average cost of energy purchaseddue to energy from auctions, exchange variation

Operating Costs and Expenses ¹ (R$ million) and adjustment of bilateral contract

+21%

1 2511,531

6,9408,390

+27%

5,689 6,858

1,469 1,923

1,251

358 3981,827 2,321

2011 2012 4Q11 4Q12

Energy Supply and Transmission Charges PMS² and Other Expenses

101 - Depreciation and other operating income and expenses are not included 2 - Personnel, Material and Services

Manageable PMSO items below the inflation

PMS and other expenses (R$ million)

4 9%+4.9%

3828 54 30 49 (25)

106 38

1,251 1,251 1,357 1,357 1,423 1,423 1,423 1,507 1,555 1,531 1,531

2011 Non recurring 2011¹

2011: ex non recurring

Collective bargaining

Others² 2012: ex non recorring

FCESP ADA Costs of reorganization

and restructuring

Non recurring 2012³

2012reported

111 - Non Recurring 2011: Reversal of tax and labor contingencies and changes in accounting criteria of ADA2 - Other: Expenses of Action Plan 2011-2012, fleet maintenance, call center, offset by lower advertising expenses and consulting, among others.3 - Non Recurring 2012: Reversal of civil and labor provisions in 2Q12 and IT expenses

Ebitda reduction reflects tariff review, higher costs with parcel A and extraordinary gains (AES Atimus SP in

Ebitda (R$ million)

p y g (2011)

(782)

(707)

(263)2,848

2,066

1 358

(263)(232)

(159) (49)

2011 Parcel A Non recurring Market review PMSO¹ Others Costs with 2012

1,358 1,126 967

656

121 – PMSO variation, excluding costs with reorganization and restructuring and non-recurring costs related to the 3Q11 and 3Q12

2011 Parcel A Non recurring 2011 and 2012

Market, review and adjustment

in Parcel B

PMSO¹ Others revenues and

expenses

Costs with reorganization

and restructuring

2012

Lower interest and fair value of assets related to concession impacted the financial resultsp

Financial Result (R$ million)

(2)2011 2012 4Q11 4Q12

(2)(21)

(52)

- 93%

143%

(22)(2)

(21)

(52)

(22)(2)

13

Net income variation reflects tariff review, Parcel A and sale of AES Atimus SP in 2011

354

1.572

Net Income (R$ million)

1 207

11354

172108

687- 93%

Net income - December 31, 2012 107.9

Realization of equity valuation adjustments 89 9

Dividends 2012 (R$ milhões)

1.207

647

(121) (132)137

( )

- 111%699

18

Realization of equity valuation adjustments 89.9

Ajustment for dividend and Interest on equity prescribed 5.1

Legal Reserve (5%) (9.9)

Distribution basis 193.1

Dividends distributed - (121)

(470)

(132) (228)

(73)

Interest on equity distributed - 12/31/2012 54.3

Proposed complementary dividends 0.5

Estatutory reserve 138.2

2011 2012 4Q11 4Q12

Net Income ‐ AdjustedRegulatory assets and liabilities variation

Expected date: Ex-dividends: 04/05/13; payment: until the end of 2013

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Regulatory assets and liabilities variationTariff review postponement effect

Lower cash generation due to tariff review and higher expenses with Parcel A

Operational Cash Generation (R$ million) Final Cash Balance (R$ million)

higher expenses with Parcel A

- 48% - 41%

Operational Cash Generation (R$ million) Final Cash Balance (R$ million)

- 48% - 41%

1,390

814

2,4161,218

2011 20122011 2012

15

Net debt impacted by lower cash balance

Avarage Cost

6.2x

Net Debt (R$ billion)

6.6 6.9

1.4x

0.9x

4.9x

110 2% 118.0%2.3 3.1 110.2%

2011 2012

2011 2012

12.1% 11.3%Effective rateGross Debt/Ebitda Adjusted with Fcesp

Net Debt (R$ billion)

Average Time - years

161 –Adjusted EBITDA with the expenses related CESP Foundation and regulatory assets and liabilities.

Net Debt/Ebitda Adjusted with FcespAverage Time years

% of CDI

Focus on efficiency

Main initiatives

Change of corporate headquarters OperationalOperational

g

Optimization of operational bases

Stores review by increasing of outsourcing

Organizational restructuring

30% growth in the productivity of operations teams of the regional north (being implemented for

other regional)

Increase in the number of clients served by automatic channels

f

Sale of real estate with an estimated value of $ 239 million, of which R$ 160 million was alreadyFi i lFi i l

Renegotiation of supplies contracts

sold

Covenants renegotiation and lengthening debt profile

Reducing manageable costs estimated at R$ 100 million from 2013

FinancialFinancial

17

The statements contained in this document with regard to theb i t j t d ti d fi i l lt

4Q12 Results

business prospects, projected operating and financial results,and growth potential are merely forecasts based on theexpectations of the Company’s Management in relation to itsfuture performance.Such estimates are highly dependent on market behavior andSuch estimates are highly dependent on market behavior andon the conditions affecting Brazil’s macroeconomicperformance as well as the electric sector and internationalmarket, and they are therefore subject to changes.