1

Institutional

June, 2012

AES Brasil Group

2

• Presence in Brazil since 1997

• Operational Figures:

• Consumption units: 7.7 million

• Distributed Energy: 53.6 TWh

• Installed Capacity: 2,659 MW

• Generated Energy : 13.9 TWh

• 7.4 thousand AES Brasil People

• Investments 1998-2011: R$ 8.1 billion

• Solid corporate governance and sustainable

practices

• Safety as value #1

3

(AES Eletropaulo) (AES Sul)

(AES Eletropaulo)

(AES Eletropaulo)

(AES Brasil)

(AES Tietê)

(AES Tietê)

(AES Eletropaulo)

(AES Tietê)

(AES Tietê) (AES Eletropaulo)

(AES Brasil)

AES Brasil widely recognized in 2009-2011

Quality and Safety Management Excellence Environmental Concern

(AES Tietê) (AES Eletropaulo)

(AES Tietê)

4

Mission & visions

Mission

• Improving lives and promoting development by providing safe, reliable and sustainable energy solutions

Visions

• Be a leader in operational and financial management in Brazilian energy generation sector and expand installed capacity

• Be the best distributors in Brazil

“Casa de Cultura e Cidadania” Project - Offers courses and activities in culture and sports. Directly benefits

approximately 5.6 thousand children and teenagers and indirectly 292 thousand people in 7 units located within

AES Brazil companies‟ areas of operation

Social responsability: annual investments

of R$ 83 million

“Centros Educacionais Luz e Lápis” Project - Two units in São Paulo attending 300 children from

1 to 6 years old in condition of social vulnerability

Children educational development

Development and transformation of communities

5

Developed for grid connection regularization. Since 2004, more than 500 thousand families in

low income communities were benefited from better energy supply conditions and social

inclusion.

“AES Eletropaulo nas Escolas” Project - Education about safe and efficient use of energy to 4.5

thousand teachers and 404 thousand students from 900 public schools. The actions include

recreational activities offered in adapted trucks.

Education on safety and efficiency in energy consumption

Converting consumers to clients

6

AES

Infoenergy

AES

Uruguaiana

AES

Eletropaulo

AES

Tietê

AES Corp BNDES

C = Common Shares

P = Preferred Shares

T = Total

Shareholding structure

C 99.99%

T 99.99%

C 76.45%

P 7.38%

T 34.87%

Cia. Brasiliana

de Energia

C 50.00% - 1 share

P 100%

T 53.85%

C 50.00% + 1 share

P 0.00%

T 46.15%

C 71.35%

P 32.34%

T 52.55%

C 99.00%

T 99.00%

AES Sul

T 99.70%

7

24.2% 28.3% 39.5% 8.0%

8.5% 56.2% 19.2% 16.1%

Others² Free Float ¹ ¹

1 - Parent companies, AES Corp and BNDES, have similar voting capital on each of the Companies: approx 38.2% on AES Eletropaulo and 35.7% on AES Tietê

2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively

3 - Base: 05/31/2012. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê

U$ 4.9 bi

U$ 2.0 bi

Market Cap³

AES Tietê and AES Eletropaulo are listed

in BM&F Bovespa

8

AES Brasil is the second largest group in the

electric sector Ebitda1 – 2011 (R$ Billion)

Net income1 – 2011 (R$ Billion)

1 – excluding Eletrobrás Source: Companies‟ financial reports

2 – includes AES Atimus sale (aprox. R$ 1 billion in EBITDA and aprox. R$ 700 million in net income)

CEMIG AES BRASIL CPFL TRACTEBEL NEOENERGIA CESP COPEL EDP LIGHT DUKE

5.44.9

3.8

2.9 2.9

2.01.9

1.51.2

0.7

2

AES BRASIL CEMIG CPFL NEOENERGIA TRACTEBEL COPEL LIGHT DUKE CESP EDP

3.0

2.4

1.6 1.61.4

1.2

0.50.3 0.3

0.1

2

TRACTEBEL 6,1%

AES TIETÊ 2,3%

CPFL2,4%

DUKE1,9%

EDP1,6%

NEOENERGIA1,2%

ENDESA0,8%

LIGHT0,8%

CHESF 9%

FURNAS 8%

ELETRONORTE 8%

ITAIPU 6%

ELETRONUCLEAR3%

CGTEE1%

ELETROSUL0,4%

CESP 6%

CEMIG6%

PETROBRÁS 5%

COPEL4%

DEMAIS27%

9 1- Sources: ANEEL – BIG (March, 2012) and Companies websites 2- Source: Banks „ reports

3 – Eletrobrás, totaling 35%

³

AES Tietê is the 3rd largest among private

generation companies

Approximately 78% of country’s generation

installed capacity is state-owned2

Three mega hydropower plants under

construction in the North region of Brazil with

18 GW in installed capacity

– Santo Antonio and Jirau (Madeira River): 7 GW

– Belo Monte (Xingu River): 11 GW

Total Installed Capacity: 117 GW

Main privately held Companies

³

³

³

³

³

³

AES Tietê is the 3rd largest private

generator in Brazil Generation installed capacity (MW) - 20121

10

AES is among the largest distribution

players in Brazil Consumers – Dec/2011

• 63 distribution companies in Brazil

distributing 430 TWh

• AES Brasil is one of the largest electricity

distribution group in Brazil:

– AES Eletropaulo: 45 TWh distributed,

10.5% of the Brazilian market

– AES Sul: 8.6 TWh distributed, 2.0% of the

Brazilian market

Distribution companies’ operations are

restricted to their concession areas

Acquisitions must be only performed by

the holdings of economic groups

AES Brasil

CPFL Energia

CEMIG

Neoenergia

Copel

Light

EDP

Outros

AES Brasil

CPFL Energia

Cemig

Neo Energia

Copel

Light

EDP

Outros

13%

12%

12%

16%7%

7%

5%

30%

Consumption (GWh) - 2011

13%

12%

11%

7%

6%6%6%

52%

Energy Sector in Brazil

¹ Interconnected National System

² Small Hydro Power Plants Sources: EPE, Aneel, ONS and Banks‟ reports

• 13 groups controlling 76% of

total installed capacity

• 22% private sector

• 1,862 power plants

• 117 GW of installed capacity

• 73% hydroelectric

• 17% thermoelectric

• 5% biomass

• 4% SHPP2

• 1% Wind

• Contracting environment –

free and regulated markets

• 68 companies

• 68% private sector

• High voltage transmission

(>230 kV)

• 98,648 km in extension

lines (SIN¹)

• Regulated public service

with free access

• Regulated tariff (annually

adjusted by inflation)

• 63 companies

• 430 TWh of energy

distributed in 2011

• 70 million consumers

• 67% private sector

• Annual tariff adjustment

• Tariff reset every four or

five years

• Regulated public service

• Regulated contracting

environment

• Consumption of 113 TWh

(26% of Brazilian total market)

• Conventional sources: above

3,000 kW

• Alternative sources: between

500 kW and 3,000 kW

• Large consumers can

purchase energy directly

from generators

• Free contracting environment

Generation Transmission Distribution Free Clients

Energy sector in Brazil: business segments

12

Auctions: New Energy

and Existing Energy Bilateral contracts (PPAs1)

• Main auctions (reverse auctions):

– New Energy (A-5): Delivery in 5 years, 15-30 years regulated PPA1

– New Energy (A-3): Delivery in 3 years, 15-30 years regulated PPA1

– Existing Energy (A-1): Delivery in 1 year, 5-15 years regulated PPA1

13

Energy sector in Brazil:

contracting environment

Generators, Independent Power Producers

(IPPs), Trading companies and Auto producers

Free clients Distribution companies

Generators and Independent

Power Producers (IPPs)

Regulated market Free market

1 – Power Purchase Agreement

14 1- Energy destined to equalize the differences between the sum of power plants‟ physical guarantees and the system‟s physical guarantee.

2- Supply based on physical guarantee

Electric sector in Brazil:

demand and supply balance

Static balance – Load x Supply (considering reserve energy1)

• Brazilian electric system

presents a surplus in the

energy balance for the

years to come

• Low risk of rationing

• Expansion opportunities

since this capacity is not

yet fully contracted

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Balance (%) 5.9% 7.8% 11.2% 9.6% 8.4% 10.0% 10.6% 8.2% 5.4% 4.2%

Balance 3,528 4,875 7,443 6,684 6,097 7,590 8,404 6,734 4,673 3,770

Reserve 439 1,007 1,509 1,743 1,746 2,959 2,959 2,959 2,959 2,959

Supply 62,912 66,355 72,585 74,492 76,823 80,320 84,428 85,886 87,601 90,409

Load 59,823 62,487 66,651 69,551 72,472 75,689 78,983 82,111 85,887 89,598

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Sta

tic b

ala

nce -

Lo

ad

x S

up

ply

(M

W a

vg

)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

110 110 110 110 110 110 110 110 110 110

6 13 23 24 28 33 38 41 42 422 3 5 8 11 14 19

117 123 133 136 141 148156 162 166 171

Current installed capacity Auctioned Upcoming auctions

15

Generation market overview

Installed capacity (GW)1

• Brazilian installed capacity to grow 4-5% y.o.y (~ 5 GW) over the next 10 years

• Renewable energies will lead the capacity increase with competitive cost vs. other technologies and strong

Government support

• Gas-fired thermal to leverage on the pre-salt discoveries and on the dispatchability benefit

Growth by source - new auctions (GW)

1- Source: EPE (Energetic Research Company), Ten-year Energy Plan 2020, May/2011

2- Amount related to thermal is an estimate of the Company

Thermal2,6

Hydro8,6

Renewables10,6

Total: 22 GW

2

16

Regulatory

Opex

(PMSO)

Investment

Remuneration

Depreciation

Energy

Purchase

Transmission

Sector Charges

Tariff reset and readjustment

• Tariff Reset is applied each 4 years for AES Eletropaulo

− Base date: Jul/2011

− Parcel A: costs are largely passed through to the tariff

− Parcel B: costs are set by ANEEL

• Tariff Readjustment: annually

− Parcel A : costs are largely passed through to the tariff

− Parcel B: cost are adjusted by IGPM +/- X(1) Factor

Remuneration

Asset Base

X Depreciation

X WACC

Regulatory

Ebitda

Parcel A - Non-Manageable Costs

Parcel B - Manageable Costs

• Remuneration Asset Base:

– Prudent investments used to calculate

the investment remuneration (applying

WACC) and depreciation

• Regulatory Opex:

– Efficient operating cost determined by

ANEEL (National Electricity Agency)

• Parcel A Costs

− Non-manageable costs that are largely

passed through to the tariff

− Incentives to reduces costs

1 – X Factor: index that captures productivity gains

Energy sector in Brazil:

regulatory methodology

17

3rd Cycle of tariff reset – X factor

Energy sector in Brazil:

regulatory methodology

X FACTOR

= Pd

Q

T

+ +

Distribution

productivity Quality of service

Operational expenses

trajectory

Capture productivity

gains

Stimulate

improvement of

service quality

Implement

operational expenses

trajectory

Defined at tariff reset,

considers the average

productivity of sector

adjusted by market

growth and

consumption variation

Defined at each tariff

readjustment, considers

variation of SAIDI and

SAIFI and comparative

performance of discos

Defined at tariff reset,

considers reference

company and

benchmarking

methodologies

DEFINITION

OBJECTIVE

APPLICATION

Timeline 2012 – 3rd cycle tariff reset

April,

10th

-ANEEL‟s Board of

Directors approved opening

of public hearing

-Release of ANEEL‟s

preliminary proposal of

-5.14% as economic effect

and -8.81% as average

effect for clients

April,

12th

- Initial period

of public

hearing

contribution

- ANEEL

provided

information

and technical

notes

May, 11th to

June. 4th

Interaction

with the

regulator

July,

4th

Tariff

adjustment

incorporating

the settlement

of tariff reset

April,

23rd

June

Final definition

on ANEEL‟s

Board of

Director

meeting

May,

11th

Deadline to

public hearing

contributions

Response to

audit report -

Regulatory

Asset Base

Tariff reset

public hearing

in person

session

April,

26th

20

AES Tietê overview

18 hydroelectric plants in São Paulo and Minas Gerais

30-year concession valid until 2029; renewable for

another 30 years

Installed capacity of 2,663 MW, with physical guarantee1

of 1,282 MW average

Almost all the amount of energy that AES Tietê can sell

is contracted with AES Eletropaulo until the end of 2015

AES Tietê can invest in generation, its main activity, and

operate in energy trading

364 employees as of March, 2012

Generation facilities

1 - Amount of energy allowed to be long term contracted

Generated energy shows high

operational availability

Generated energy (MW avarage1)

1 – Generated energy divided by the amount of hours * Caconde, Limoeiro, Mogi and SHPPs

Generated energy by power plant (MW average1)

21

130%

125% 124%

Generation/Physical guarantee

136%

130%

2009 2010 2011 1Q11 1Q12

1,6651,599 1,582 1,612

1,753

Generation - Mwavg

59%

10%

9%

6%

5%

4%7%

Agua Vermelha

Nova Avanhandava

Promissão

Ibitinga

Bariri

Barra Bonita

Other Power Plants*

2009 2010 2011 1Q11 1Q12

11,108 11,108 11,108

2,526 2,879

2,331 1,980 426

5871,256

1,150 1,340 204

424570

117 301 554

108 162

14,706 14,729 15,122

3,645

4,867

A significant amount of billed energy and net

revenues comes from the bilateral contract with

AES Eletropaulo

Billed energy (GWh)

1 – Energy Reallocation Mechanism

Net revenues (%)

22

2008 2009 2010 9M10 9M11

11,138 11,108 11,108

8,578 8,045

1,680 2,331 1,980

1,554 1,535

331 1,150 1,340

1,135 1,188

117 301

215 346

AES Eletropaulo MRE Spot Market Other bilateral contracts1

88%

3%

2%

6%

AES Eletropaulo

Outros contratos bilaterais

MRE

Mercado Spot

94%

3%2%

1%

AES Eletropaulo

Other bilateral contracts

Spot Market

MRE

94%

3%2%

1%

AES Eletropaulo

Other bilateral contracts

Spot Market

MRE

94%

3%2%

1%

AES Eletropaulo

Other bilateral contracts

Spot Market

MRE

1

2010 2011 2012(e) 1Q11 1Q12

70

156

3419

12

19

4

2

82

175

174

3821

Investments New SHPPs*

23

Investments (R$ million) 1Q12 Investments

*Small Hydro Power Plants

86%

11%3%

Equipment and Maintenance

New SHPPs

IT Projects

*

Nova Avanhandava and Ibitinga power

plants modernization investments

24

Growth opportunities and capacity expansion obligation

“Thermal São Paulo” Project

- Natural gas combined cycle thermal plant, with 550 MW of installed capacity

- Gas unavailability for A-5 energy (2011)

- Project registered in 2012 A-3 and A-5 auctions. Deadlines to turn in the gas contract are June 28th and August 6th,

2012, respectively

- Environmental license was suspended by court injunction, but on May 15th, 2012, the State of São Paulo Court of

Appeals has suspended the injunction. A decision on the merits of the appeal is still pending

- Next steps: Fullfillment of requirements to obtain the installation license

- April 26th: Presentation of the Company‟s capacity expansion plan (Thermal São Paulo Project)

“Thermal Araraquara” Project

- Purchase option acquired in March, 2012

- Natural gas combined cycle thermal plant, with 579 MW of installed capacity

- Registered for A-3 and A-5 energy auctions in 2012

- High sinergy potential with Thermal São Paulo

Expansion Obligation

2009 2010 2011 1Q11 1Q12

1,670 1,754 1,886

416 540

(54)

2009 2010 2011 1Q11 1Q12

1,309 1,311

9

1,255 1,3201,466

338423

25

Ebitda (R$ million) Net revenue (R$ million)

Financial highlights

75% 75% 78% 81%

Ebitda Margin

2008 2009 2010 9M10 9M11

1,309 1,311

9

1,254 1,255 1,320 1,035 1,048

Recurring Non-recurring

78%

Steady earnings distribution on a

quarterly basis

Net income and dividend pay-out1 (R$ million)

26 1 – Gross value

Recurring Non - recurring Pay - out Yield Pref

• Dividends distribution practice:

100% of net income

– 25% of minimum pay-out

according to bylaws

– Average payout since 2006:

106%

– Average dividends since 2006:

R$ 745 million per year

(36)

11% 11% 11%

2009 2010 2011 1Q11 1Q12

742 706845

193 246

31

706 737

110% 117% 109%

2009 2010 2011 1Q11 1Q12

0.4 0.40.4 0.5

0.5

Net Debt

0.3x 0.3x 0.3x

Net Debt / EBITDA

0.4x0.3x

27

Debt profile

Net debt (R$ billion) Amortization schedule – principal (R$ million)

• March, 2012:

– Average debt cost in 1Q12 was 115% of CDI1 p.a. or 15% p.a.

– Average debt maturity of 2.0 years

1 – Brazilian Interbank Interest Rate

2013 2014 2015

300 300 300

28 1 – Index: 05/31/2011 = 100 3 – Total Shareholders‟ Return

Capital markets

• Market Cap4: US$ 4.9 billion

• BM&FBovespa: GETI3 (common shares) and GETI4 (preferred shares)

• ADRs negotiated in US OTC Market: AESAY (common shares) and AESYY

(preferred shares)

4 – Index: 05/31/2012

Daily avg volume (R$ thousand) AES Tietê X Ibovespa X IEE

2 – Electric Energy Index

2009 2010 2011 YTD May/12

8,0869,683 9,537

13,916

2,101

4,239 3,397

2,83810,187

13,922 12,93416,754

Preferred Common

70

80

90

100

110

120

130

May-11 Aug-11 Oct-11 Dec-11 Mar-12 May-12

12 Months1

Ibovespa IEE² GETI4 TSR³ GETI3

+ 13%

-16%

+ 10%

+ 16%

+ 9%

30

AES Eletropaulo overview

Largest electricity distribution company in Latin America

Serving 24 municipalities in the São Paulo Metropolitan area

Concession contract valid until 2028; renewable for another 30

years

Concession area with the highest GDP in Brazil

45 thousand kilometers of lines and 6.3 million consumption

units in a concession area of 4,526 km2

45 TWh distributed in 2011

AES Eletropaulo, as a distribution company, can only invest in

assets within its concession area

5,809 employees as of March, 2012

Concession area

31

Consumption Evolution

Total market1 (GWh) Consumption by class – 12 months (%)

1 – Net of own consumption

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2008 2009 2010 1H10 1H11

33,860 34,436 35,434

17,437 18,216

7,383 6,8327,911

3,823 4,149

41,243 41,26943,345

20,71422,366

Captive Market Free Clients

2009 2010 2011 1Q11 1Q12

34,436 35,434 36,817

9,078 9,239

6,8327,911

8,284

2,040 1,906

41,269 43,34545,102

11,119 11,146

Free Clients Total Market

Brazil AES Eletropaulo

2737

18

28

40

26

15 9

Residential Commercial Industrial Others

-15%

-10%

-5%

0%

5%

10%

15%

Jul/07 Feb/08 Sep/08 Apr/09 Nov/09 Jun/10 Jan/11 Aug/11 Mar/12

Industrial production SP (% 12 months) Industrial (% 12 months)

Economic recovery Economic crisis

Industrial Class

Industrial class X Industrial production in São Paulo State

Consumption of industrial class by activity1 – AES Eletropaulo

• Industrial consumption is

influenced by manufacturing

industry performance in São Paulo

State

• Recent slowdown is influenced by

the decrease of industrial

production in 2011 and 2012

32 1 – As of March, 2012.

Vehicles, Chemical,Rubber, Plastic

and Metal products

48%

Other industries

52%

2,800

3,300

3,800

4,300

4,800

1,000

1,200

1,400

1,600

1,800

1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12

Resid

en

tial

(GW

h)

Avera

ge I

nco

me R

$ -

SP

(q

-2¹)

Avg Real Income R$ - SP (q-2¹) Residential (GWh)

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

258

220

192 199 203 207

213 219 223 228 229 234

- 9.4%

Residential class

Residential class X Average income in São Paulo Metropolitan Area

1 - Two quarters of delay in relation to consumption

• Residential consumption driven

by average income

• Income expansion trend in São

Paulo Metropolitan Area will

sustain growth of residential class

• Average annual growth (2003-

2011):

– total residential market: 5.5% y.o.y

– consumption per consumer: 2.1%

y.o.y

Consumption per consumer is

still 9.4% lower than in

the period before the rationing

33

Consumption per consumer (in kWh)

Rationing

34

Investments focused on grid automation,

maintenance and system expansion

Investments breakdown (R$ million) Investments 1Q12 (R$ million)

34

0

100

200

300

400

500

600

700

800

2009 2010 2011(e) 9M10 9M11

478

654715

362

513

37

2829

22

16516

682

744

383530

Capex Paid by Customers

44

46

53

6

7

7

22

Maintenance

Client Service

System Expansion

Losses Recovery

IT

Paid by the Clients

Others

35

SAIDI - System average interruption duration index

SAIDI reduction as a result of

action plan implementation

8th 7th

Sources: ANEEL, AES Eletropaulo and ABRADEE

1 – Accumulated 3 months (Jan-Mar) 2011 and 2012

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

► 2012 SAIDI ANEEL Reference: 8.67 hours

6th

- 26%

2009 2010 2011

11.86 10.60 10.36

SAIDI (hours)

10.09 9.32

8.68

SAIDI Aneel Reference

2009 2010 2011

11.86 10.60 10.36

SAIDI (hours)

10.09 9.32

8.68

SAIDI Aneel Reference

3M11 3M12

3.472.57

1 1

36

SAIFI - System average interruption frequency index

SAIFI remains below regulatory limit

7th 3rd

Sources: ANEEL, AES Eletropaulo and ABRADEE

1 – Accumulated 3 months (Jan-Mar) 2011 and 2012

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

► 2012 SAIFI ANEEL Reference: 6.87 times

4th

7.87 7.39

6.93

SAIFI Aneel Reference

2009 2010 2011

6.17 5.43 5.45

SAIFI (times)

7.87 7.39

6.93

SAIFI Aneel Reference

2009 2010 2011

6.17 5.43 5.45

SAIFI (times)

- 22%

3M11 3M12

1.801.40

1 1

37

Losses (%) Collection rate (% over Gross Revenues)

Operational KPIs

From Jul/10 to Jun/11: 12.45% From Jul/09 to Jun/10: 12.32%

ANEEL References:

2009 2010 2011 1Q11 1Q12

6.5 6.5 6.5 6.5 6.4

5.3 4.4 4.0 4.3 4.0

11.8 10.9 10.5 10.8 10.4

Technical Losses Commercial Losses

38

“Creating Value” Project

Internal process review: (i) operating activities; (ii) support functions

Target definition for productivity

increase

Reassess organization structure

Review supply management

Reassess and reinforce non-technical

losses initiatives

Objective: to operate

within the regulatory

framework for

operational costs,

and seek benchmark

position in the

sector

39

Ebitda (R$ million) Net revenues (R$ million)

Financial highlights

2008 2009 2010 9M10 9M11

1,607 1,486 1,6301,325 1,326

-202

357

245 332 89

87

426

301 58

Recurring

Regulatory assets and liabilities

Non-recurring

2009 2010 2011 1Q11 1Q12

8,786

9,697 9,836

2,423 2,472

2009 2010 2011 1Q11 1Q12

1,4911,648

1,473

415182

197

339 442

134

136

87

426 934 1,775

2,413 2,848

549 318

Regulatory assets and liabilities

Non-recurring

Ebitda1

1 – Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 707 million impact on Ebitda

2009 2010 2011 1Q11 1Q12

622762

634

190

160

236 287

92

98

374

350 652

1,156 1,348

1,572

282

110

Regulatory assets and liabilities One-off Série3

40 1 – Gross amount

Net income and dividend payout1 (R$ million)

Earnings distribution

on semi-annual basis

2009 2010 2011 1Q11 1Q12

622762

634

190

160

236 287

92

98

374

350 652

1.156 1.348

1.572

282

110

Net Income - ex one-off and regulatory assets and liabilities

Regulatory assets and liabilities

One-off

13

93.4%114.4%

54.4%

20.4% 28.6% 17.1% 0.0%20.0%40.0%60.0%80.0%100.0%120.0%140.0%

Pay-out Yield PN

93.4%114.4%

54.4%

20.4% 28.6% 17.1% 0.0%20.0%40.0%60.0%80.0%100.0%120.0%140.0%

Pay-out Yield PN

• Dividends distribution practice:

distribution above the minimum

required

- 25% of minimum pay-out according

to bylaws

– Average payout since 2006: 83%

per year

– Average dividends since 2006:

R$ R$ 904 million per year

2– Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income

41 1 – Brazilian Interbank Interest Rate 2 – Inflation Index 3 – Pension Fund

Debt profile Net debt

Amortization schedule – principal (R$ million)

2012 2013 2014 2015 2016 2017 2018 2019 2020 - 2028

351 302

533

228 337

226 436

321 400

70 61

46

49

52

56

60

64

753

421 363

579

277

389

282

496 385

1.154

Local Currency (ex FCesp) Fcesp

2009 2010 2011 1Q11 1Q12

2.0x

1.6x1.3x 1.4x

1.6x1.4x

0.9x0.8x 0.9x 0.9x

Gross Debt/Ebitda Adjusted with Fcesp

Net Debt/Ebitda Adjusted with Fcesp

72%

28%

0.5%

CDI IGP - DI Others1

• March, 2012:

- Average debt cost: 11.9% p.a.

- Average debt maturity: 6.9 years 2009 2010 2011 1Q11 1Q12

2.5 2.4 2.3 2.4 2.4

Net Debt (R$ billion)

2

40

60

80

100

120

140

May-11 Aug-11 Oct-11 Dec-11 Mar-12 May-12

12 Months1

Ibovespa IEE² AES Eletropaulo PN AES Eletropaulo TSR³

+ 13%

- 16%

- 31%

- 8%

2009 2010 2011 YTD May/12

21,96024,496 26,897

49,695

42

Average daily volume (R$ thousand)

Capital markets AES Eletropaulo X Ibovespa X IEE

• Market cap4: U$ 2.0 billion

• BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares)

• ADRs at US OTC Market: EPUMY (preferred shares)

1 – Information until 05/31/2012. Index: 31/05/2011 = 100 2 – Electric Energy Index

3 – Total Shareholder Return 4– Index: 05/31/12. Calculation includes only preferred shares

B Material Fact 10/04/2012: technical notes published by Aneel regarding the calculation

of the preliminar tariff review rate, including the regulatory asset basis .

Ex dividends: 08/11/2011 A

A B

Attachments

44

Costs and expenses

Costs and operational expenses1 (R$ million)

1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses

2

2008 2009 2010 2011

239 214 246 245

112201

187 174

351

415433 420

Energy Purchase, Transmission and Connection Charges, and Water Resources

Other Costs and Expenses

2009 2010 2011 1Q11 1Q12

214 246 245

49 66

201187 174

2951

415433 420

78

117

45

Costs and expenses

Costs and operational expenses1 (R$ million)

1 – Do not include depreciation and amortization

2 - Personnel, Material, Third Party Services and Other Costs and Expenses

PMS2 and other expenses (R$ million)

2009 2010 2011 1Q11 1Q12

5,125 5,490 5,689

1,359 1,535

1,3061,255 1,267

348 401

6,4316,745 6,956

1,707 1,937

PMS² and Others Expenses Total

2008 2009 2010 9M10 9M11

4,700 5,125 5,490

4,036 4,220

1,1931,306

1,255

970 909

5,8936,431

6,745

5,006 5,129

Energy Supply and Transmission Charges PMS² and Others Expenses

2009 2010 2011 1Q11 1Q12

700 647 622

151 185

352 443 513

126132

254 165 132

70 84

1,306 1,255 1,267

348 401

Personnel and Payroll Material and Third Party Others

46

AES Tiete's expansion obligation

Efforts being made

by the Company to

meet the obligation :

• Long-term energy

contracts (biomass)

totaling an average of

10 MW

• SHPP São Joaquim

- started operating in

July, 2011, with 3 MW

of installed capacity

• SHPP São José -

started operating in

March, 2012, with 4

MW of installed

capacity

• Thermal SP - Project

of a 550MW gas fired

thermo plant

• Thermal Araraquara

- Acquisition of a

purchase option

1999 Jul/09 Oct/08 Aug/08 Sep/11 Sep/10

Privatization Notice

established the

obligation to expand the

installed capacity in

15% (400 MW) until

2007, either in

greenfield projects

and/or through long

term purchase

agreements with new

plants

Aneel informed

that the issue is

not related to

the concession

agreement and

must be

addressed with

the State of São

Paulo

Judicial Notice:

The Company was notified

by the State of São Paulo

Attorney's Office to present

its understanding on the

matter, having filed its

response on time, the

proceedings were ended,

since no other action was

taken by the Attorney's

Office

In response to a Popular

Action (filed by

individuals against the

Federal Government,

Aneel, AES Tietê and

Duke), the Company

presents its defense

before the first instance

Popular Action:

Due to the plaintiffs failure

to specify the persons that

should be named as

Defendants, a favorable

decision was rendered by

the first Instance Court

(an appeal has been filed)

AES Tietê was

summoned to answer a

Lawsuit filed by the

State of São Paulo,

which requested the

fulfillment of the

obligation in 24 months.

An injunction was

granted in order to have

a project submitted

within 60 days.

Nov/11 2007

Company faces restrictions until

deadline:

• Insufficiency of hydro resources

• Environmental restrictions

• Insufficiency of natural gas supply

• New Model of Electric Sector (Law #

10,848/2004), which forbids bilateral

agreements between generators and

distributors

Apr/12

Lawsuit:

The Company

appealed to the

State of Sao

Paulo State Court

of Appeals and

the injunction was

kept

In March, 19th the

Company‟s appeal

was denied. Thus,

on April, 26th AES

Tietê presented

“Thermo São Paulo”

project as the plan

to fullfill the

obligation to

expand the installed

capacity.

47

Next Steps:

1 - The

appraisal

procedure (AP)

is expected to

begin by the

2nd half of 2012

2 – AP is

expected to be

concluded in at

least 6 months

3 - After AP‟s

conclusion, a

1st Instance

Court decision

will be issue

> In case of an

unfavorable

decision:

4 –Appeal to

the 2nd

Instance Court

5 - Collection

starts.

Presentation of

guaranty

6 - Request to

seize the

guaranty

7 - Appeals to

the Superior

Courts

Eletrobras lawsuit

Nov/86

Stated-owned

Eletropaulo

borrowed money

from Eletrobras

Dec/88

State-owned

Eletropaulo and

Eletrobras

disagreed on how

to calculate

interest over that

loan and two

lawsuits, which

were later merged

into one, were

initiated

Sep/03

Based on the

spin-off protocol,

he 2nd Instance

Court excluded

AES Eletropaulo

from the lawsuit

Jun/06

The SCJ annulled

the 2nd Instance

Court decision

and sent the

Execution Suit

back to the 1st

Instance Court

May/09

In accordance to

the procedure

that was

stipulated by 2nd

Instance Court

after an appeal

from AES

Eletropaulo,

Eletrobras

requested the 1st

Instance Court to

appoint an expert

Jan/98 Oct/05

Eletrobras and

CTEEP appealed

to the Superior

Court of Justice

(SCJ)

Dec/10 Sep/01

Eletrobras, after

winning the

interest

calculation

discussion, filed

an Execution Suit

aiming the

collection of the

amounts that

were in default

State-owned

Eletropaulo was

spun-off into four

companies and,

according to our

understanding

based on the

spin-off

agreement, the

discussion was

transferred to

CTEEP

Privatization

event . State-

owned

Eletropaulo

became AES

Eletropaulo

Apr/98

Eletrobras

requested the

beginning of the

appraisal procedure

before the 1st

Instance Court

Jul/11

On July 7, the

judge determined

Eletropaulo and

CTEEP to present

their

considerations,

which occurred in

August

Shareholders agreement

48

Any party with an intention to dispose its shares should first provide the other party the right to buy

that participation at the same price offered by a third party

Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of all

its shares at the time, if the Right of 1st Refusal is not exercised by offered party

In the case of change in Brasiliana‟s control, tag along rights are triggered for the following

companies (only if AES is no longer controlling shareholder):

– AES Eletropaulo: Tag along of 100% in its common and preferred shares

– AES Tietê: Tag along of 80% in its common shares

– AES Elpa: Tag along of 80% in its common shares

On Dec 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship as shareholders of

Brasiliana and its controlled companies. The Agreement is available at www.aeseletropaulo.com.br/ri

Shareholders can dispose its share at any time, considering the following terms:

Right of 1st

refusal

Drag along

rights

Tag along

rights

49

Brazilian main taxes

AES Eletropaulo

• Income Tax / Social Contribution:

– 34% over taxable income

• ICMS: 22% over Revenue (average rate)

– Residential: 25%

– Industrial and commercial: 18%

– Public entities: free

• PIS/Cofins:

– 9.25% over revenue minus Costs

AES Tietê

• Income Tax / Social Contribution:

– 34% over taxable income

• ICMS (VAT tax)

– deferred tax

• PIS/Cofins (sales tax):

– Eletropaulo´s PPA: 3.65% over Revenue

– Other bilateral contracts: 9.25% over Revenue

minus Costs

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.

Contacts:

ri.aeseletropaulo@aes.com

ri.aestiete@aes.com

+ 55 11 2195 7048