Expo Money São PauloSeptember, 2012

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AES Brasil Group

P i B il i 1997• Presence in Brazil since 1997• Operational Figures:

• Consumption units: 7.7 million

• Distributed Energy: 53 6 TWhDistributed 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 sustainablepractices• Safety as value #1

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AES Brasil widely recognized in 2009-2012

Quality and Safety Management Excellence Environmental Concern

(AES Tietê)

(AES Tietê)

(AES El l )

(AES Eletropaulo) (AES Sul)(AES Brasil)

(AES Tietê)

(AES El t l )

(AES Tietê)

(AES Eletropaulo)

(AES Eletropaulo)

(AES Eletropaulo)

(AES Brasil)

(AES Tietê)(AES Tietê)

(AES Eletropaulo)

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(AES Eletropaulo) (AES Eletropaulo)(2011- AES Tietê; 2012 – AES Eletropaulo)(AES Tietê)

Shareholding structure

AES Corp BNDES

C 50.00% - 1 shareP 100%T 53.85%

C 50.00% + 1 shareP 0.00%T 46.15%

Cia. Brasiliana de Energia

C 99.99%T 99.99%

C 76.45%P 7.38%T 34.87%

C 71.35%P 32.34%T 52.55%

C 99.00%T 99.00%T 99.70%

AESInfoenergy

AESUruguaiana

AESEletropaulo

AESTietêAES Sul

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C = Common SharesP = Preferred Shares

T = Total

AES Tietê and AES Eletropaulo are listed i BM&F Bin BM&F Bovespa

Others²Free Float¹ ¹ Market Cap³

R$ 3.2 bi

US$ 1 6 bi8.5%56.2%19.2%16.1%

R$ 9.8 bi

US$ 1.6 bi

24 2% 28 3% 39 5% 8 0%US$ 4.8 bi

24.2% 28.3% 39.5% 8.0%

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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, respectively3 - Base: 08/08/2012. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê

AES Tietê overviewGeneration facilities

18 hydroelectric plants in São Paulo and Minas Gerais

30-year concession valid until 2029; renewable for other

20 years20 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 AES Tietê can invest in generation, its main activity, and

operate in energy trading

370 employees as of June, 2012

71 - Amount of energy allowed to be long term contracted

Generated energy shows high operational availability p y

Generated energy (MW avarage1) 1H12 Generated energy by power plant (MW average1)

7%

Água Vermelha

Bariri

139% 138%130%

125% 124%

10%

9%7% Bariri 

Barra Bonita

Ibi i

124%

59%

5%5%

5%

Ibitinga

Nova Avanhandava1.665

1.599 1.582 1.606

1.742

5% Promissão

Other Power Plants*

2009 2010 2011 1H11 1H12

Generation - Mwavg Generation/Physical guarantee

1 – Generated energy divided by the amount of hours * Caconde, Limoeiro, Mogi and SHPPs 8

A significant amount of billed energy and net revenues comes from the bilateral contract with

AES EletropauloNet revenues (%)Billed energy (GWh)

14,706 14,729 15,122 88%

2,331 1,980 1,942

1,150 1,340 1,519

117 301 554 , ,

9 059

11 108 11 108 11 108 1 4252,182 851

909 201 297 7,510

9,059

3%7%2%

AES Eletropaulo

Other bilateral contracts

11,108 11,108 11,108

5,034 5,672

1,425

1 – Energy Reallocation Mechanism 9AES Eletropaulo MRE Spot Market Other bilateral contracts1

Other bilateral contracts

Spot Market

MRE1

2009 2010 2011 1H11 1H12

Nova Avanhandava and Ibitinga power plants modernization investments

Investments (R$ million) 1H12 Investments

p

87%175

19

82

7%6%

70

156

62

12 10

3

82174 72

41

Equipment and Modernization2010 2011 2012(e) 1H11 1H12

70 6238

101-Small Hydro Power Plants

New SHPPs*

IT projectsInvestments New SHPPs1

Growth opportunities

“Thermal São Paulo” Project

N t l bi d l th l l t ith 550 MW f i t ll d it- Natural gas combined cycle thermal plant, with 550 MW of installed capacity

- Project will not participate in 2012 auctions (A-3 and A-5) due to gas unavailability

- Environmental License was restored after the decision of São Paulo State Court of Justice

- Next steps: Obtainment of the installation license

“Th l A ” P j t“Thermal Araraquara” Project

- Natural gas combined cycle thermal plant, with 579 MW of installed capacity- Purchase option acquired in March, 2012

P j t ill t ti i t i 2012 ti (A 3 d A 5) d t il bilit- Project will not participate in 2012 auctions (A-3 and A-5) due to gas unavailability- Next steps: Obtainment of the installation license

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Financial highlights

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

1 255 1,320 1,466

1 670 1 754 1,886

9 1,255 ,

1,670 1,754

8251,075

1,309 1,311

643 827

(54)

75% 75% 78% 78% 77%

2009 2010 2011 1H11 1H122009 2010 2011 1H11 1H12

(54)

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Ebitda MarginRecurring Non-recurring

Steady earnings distribution on a q arterl basisquarterly basis

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

110% 117% 109%

• Dividends distribution practice:100% of net income

– 25% of minimum pay-out

11% 11% 11%

p yaccording to bylaws

– Average payout since 2006:106%

Average dividends since 2006:

31479

706 737

– Average dividends since 2006:R$ 745 million per year

742 706845

354476

(36) (3)2009 2010 2011 1H11 1H12

131 – Gross value

Recurring Non-recurringPay -out Yield Pref

Capital MarketsAES Tietê X Ibovespa X IEE

140

160 12 MounthsBA

+ 10%120

140

+ 5%

+ 15%

80

100

set/11 dez/11 mar/12 jun/12 set/12

+ 5%

- 9%+ 3%

set/11 dez/11 mar/12 jun/12 set/12

Ibovespa IEE² GETI4 TSR³ GETI3

Ex dividends 08/06/2012A

• Market Cap4: R$ 8.1 billion

Provisional Measure 579 published to define the conditions for renewal of concession contracts and tax cuts in the energy sector.B

142 – Eletric Energy Index1 – Index: 09/14/2011 = 100 3 – Total Shareholder’s Return 4 – Data from: 09/14/2012

• BM&FBovespa: GETI3 (common) e GETI4 (preferred)

• ADRs traded in the U.S. OTC Market: AESAY (common) and AESYY (preferred)

Why invest in AES Tietê?

St h ti bilit Strong cash generation ability

First-class corporate governance practices

Sustainable practices in business

Shareholder remuneration practice in recent years: quarterly payments of

the total net income

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AES Eletropaulo overviewConcession area

Largest electricity distribution company in Latin America

Serving 24 municipalities in the São Paulo Metropolitan area

Concession contract valid until 2028; renewable for another 30Concession 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 45 TWh distributed in 2011

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

assets within its concession area

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5,850 employees as of June, 2012

Consumption evolution

Total market1 (GWh) Consumption by class – 1H12 (%)

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41,269 43,345 45,102 18 29

15 9

6,832 7,911 8,28441,269

22,365 22,67441 24

34,436 35,434 36,817

18,216 18,754

4,149 3,920

22,365 ,

2638

2009 2010 2011 1H11 1H12

Captive Market Free Clients

Brazil AES Eletropaulo

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181 – Net of own consumption

Captive Market Free Clients

Residential Industrial Commercial Others

Investments focused on grid automation, maintenance and system expansiony p

Investments breakdown (R$ million) Investments 1H12 (R$ million)

88

98

1215

700

800

2822

46682

739 841

88

8815

38

400

500

600

700

794

28

325 354

88

Maintenance100

200

300

400

654 7179

315 339

10 15

Client Service

System Expansion

Losses Recovery

IT

0

100

2010 2011 2012(e) 1H11 1H12

Capex Paid by Customers IT

Paid by the Clients

Others

Capex Paid by Customers

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SAIDI reduction and SAIFI remains below the regulatory limit g y

SAIDI - System average interruption duration index SAIFI - System average interruption frequency index

7.87 7.39 6.93 - 18%

10.09 9.32

8 68

6.17 5.43 5.452.90 2.37

11.86 10.60 10.36

8.68

5.784.54

SAIDI (h ) SAIDI A l R f

2009 2010 2011 Jan-Jun/11 Jan-Jun/12

SAIFI A l R fSAIFI (ti )

2009 2010 2011 jan/jun11 jan/jun12

7th 3rd 4th8th 7th 6th

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

SAIDI (hours) SAIDI Aneel Reference SAIFI Aneel ReferenceSAIFI (times)

2012 SAIFI ANEE R f 6 8 i

20Source: ANEEL, AES Eletropaulo and ABRADEE 1 – 1 – Accumulated 7 months (Jan-Jun ) 2011 and 2012

► 2012 SAIDI ANEEL Reference: 8.67 hours ► 2012 SAIFI ANEEL Reference: 6.87 times

Financial highlights

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

426

2,413 2,848

9,697 9,836

197 339

44287

426 9331,7758,786

9,697 ,

1,491 1,648 1,473940

134

136

1,074

562

4,814 4,924

2009 2010 2011 1H11 1H12

9 0425

2009 2010 2011 1H11 1H12

Recurring

Regulatory assets and liabilities

Non-recurring21

1

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

Earnings distributionon semi-annual basis

Net income and dividend payout1 (R$ million)o se a ua bas s

101.5% 114.4%

54.4%

• Dividends distribution practice:distribution above the minimum

20.4% 28.6% 17.1%

1.348

1.572

required- 25% of minimum pay-out according

to bylaws

– Average payout since 2006: 83%236374

350 6521.157

Average payout since 2006: 83%per year

– Average dividends since 2006:R$ R$ 904 million per year

622 762 634

160236

287

162

537

167

(80)2009 2010 2011 1H11 1H12

6376 247

221 – Gross amount2– Non recurring 2011 :Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income

Pay-out Yield PNNet Income - ex one-off and with regulatory assets and liabilities

Regulatory assets and liabilities

One off

Regulatory methodology and tariff reset

3rd cycle of tariff resetTariff reset and readjustment

• Tariff Reset is applied each 4 years for AES Eletropaulo

Tariff Revision:Average effect perceived by

consumers: -9.33%

Variable costs

Regulatory O

Parcel A

Tariff reset +5 51%RemunerationA t B

X WACC Investment Remuneration

Opex(PMSO)

Parcel B

Tariff reset: +5.51%Asset Base

X Depreciation Depreciation

• Tariff Readjustment: annually − Parcel A : costs are largely passed through to the tariff Review + tariff adjustment: -2.26%

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

1 – X Factor: index that captures productivity gains

From July 4, 2012

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Efficiency program and cost management

Implementation of “Creating Value” project in 2010, that provided gains with cost control and increasei ffi i d

Efficiency ProgramEfficiency Program

management

in efficiency and revenue

Program initiatives:

• review in the operational process and support areas

• increase in productivity of the teams in fieldincrease in productivity of the teams in field

• optimization in orders to emergency teams

• improvement in the management of material and service suppliers contracts

• efficient use of operational fleet

• rationalization and modernization of customer services stores and on site billing

Centralization of activities in the new corporate headquarters and demobilization of CambuciSale of PropertySale of Property Centralization of activities in the new corporate headquarters and demobilization of Cambucioperational unit will allow the sale of real estate in value estimated up to R$ 239 million

Sale of PropertySale of Property

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Capital MarketsAES El t l X Ib X IEE

130

150

AES Eletropaulo X Ibovespa X IEE

BA12 mounths¹

70

90

110 + 5%+10%

- 34%

30

50

70

set-11 nov-11 jan-12 mar-12 mai-12 jul-12 set-12

- 38%- 34%

Ibovespa IEE² AES Eletropaulo PN AES Eletropaulo TSR³

Disclosure by Aneel of the preliminary calculation of the tariff reset- 10/04/2012A

• Market cap4: R$ 3.1 billion• BM&FBOVESPA: ELPL3 (common) and ELPL4 (preferred)

B Aneel disclosed the final terms relating to tariff resetand adjustment - 02 and 03/07/2012

BM&FBOVESPA: ELPL3 (common) and ELPL4 (preferred)• ADRs traded on the OTC Market: EPUMY (preferred)

1 – information until 14/09/2012, Index: 14/09/2011 = 100 2 – Eletric Energy Index3 – Total Shareholder Return 4– Data from:: 09/14/12. Calculation includes only preferred shares

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Why invest in AES Eletropaulo?

Strong ability to generate cash

First-class corporate governance practices

Embracing sustainable practices in business

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Contacts:ri.aeseletropaulo@aes.com

ri.aestiete@aes.com

+ 55 11 2195 7048

The statements contained in this document with regard to the business prospects, projected operating and financiall d h i l l f b d h i f h C ’ M iresults, 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 conditionsaffecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they aretherefore subject to changes.

.