2Q12 Results August, 2012

Increase of 2.5% in energy consumption within Company’s concession area, totaling 11,529 GWh

Implementation of the Action Plan in 2011 resulted in a reduction of 12.2% in SAIDI and 10.3% in SAIFI in 2Q12

Investments of R$ 184 million, 7.1% higher than 2Q11

Gross revenue totaled R$ 3,838 million, a 2.8% increase when compared to 2Q11

Ebitda of R$ 244 million in the 2Q12, reduction of 53.6% when compared to the same period of the last year

Net Income of R$ 57 million, 77.8% lower than 2Q11

.

Financial

2Q12 Highligths

Operational

2

In July 2nd , 2012, Aneel approved Company’s final tariff review rate of -9.33% (average effect to be perceived by the consumer) and -5.60% (economical effect)

In July 3rd , 2012, Aneel authorized an average Tariff adjustment of +5.51% (average effect to be perceived by the consumer) and + 4.45% (economical effect)

The amount to be returned to the consumer through the tariff, due to the postponement of tariff review application, is R$ 1,053 million

Regulatory

3rd Cycle of the Periodic Tariff Reset

3

Gross Regulatory Asset Base: R$ 10,748.8 million

Net Regulatory Asset Base: R$ 4,445.1 million

Parcel B: R$ 2,007.1 million

Non Technical Losses(referenced in the low voltage market): start point at 11.56% and getting to 8,56%, by the end of the cycle

Average effect to be perceived by the consumer: -9.33%

Economical Effect: -5.60%

Tariff Adjustment Average effect to be perceived by the consumer : +5.51%

Economical Effect: +4.45%

Tariff Review

Administrative Appeal

In 17th July, Company filed a request for reconsideration of the Homologation Resolution 1,327/2012 about the Regulatory Asset Base and the non-technical losses trajectory

Tariff Review + Adjustment Average effect to be perceived by the consumer : -2.26%

4

Consumption evolution (GWh)¹

Performance of residential and commercial clients offset the drop in industrial class

1 – Own consumption not considered

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

4,053

1,513

2,879

694

9,138

2,109

11,246

4,339

1,465

2,965

747

9,515

2,014

11,529

2Q11 2Q12

+7.1% -3.2% +3.0% +7.6% +4.1% -4.5% +2.5%

5

SAIDI reduction in the last 12 months as a result of the Action Plan

SAIDI¹ (last 12 months)

1 - System Average Interruption Duration Index Source: ANEEL and AES Eletropaulo

SAIDI (hours)SAIDI (hours)

SAIDI Aneel Reference

-21.2%

SAIDI¹ (YTD)

- 12.2%

Jan-Jul/11 Jan-Jul/12

6.535.14

2009 2010 2011 2Q11 2Q12 Jul-12

11.86 10.60 10.36 10.40 9.13 8.97

10.09 9.32

8.68

Jan-Jul/11 Jan-Jul/12

3.372.74

6

SAIFI remains below the regulatory limit and keeps presenting a decrease

SAIFI ¹ (last 12 months)

1- System Average Interruption Frequency Index Source: ANEEL and AES Eletropaulo

SAIFI (times)

SAIFI Aneel Reference SAIFI (times)

-18.7%

SAIFI¹ (YTD)

-10.2%

7.87 7.39 6.93

2009 2010 2011 2Q11 2Q12 Jul-12

6.17 5.46 5.45 5.48

4.92 4.81

7

1 – In January 2012, AES Eletropaulo improved the calculation of technical losses who have been reduced to a level around 6.1%. As the percentage of losses is calculated based on the last 12 months, the percentage of technical losses is 6.3% of the 2Q12. 2 – Regulatory reference is estimated by the Company in order to translate the reference given by Aneel for non-technical losses in the market for low voltage to total energy injected into the system

Regulatory Reference² - Total Losses (last 12 months)

Losses level below regulatory reference for the 3rd Cycle

Losses (last 12 months)

2011/2012 2012/2013 2013/2014 2014/2015

10.7 10.3 9.8 9.4

2009 2010 2011 2Q11 2Q12

6.5 6.5 6.5 6.5 6.3

5.3 4.4 4.0 4.1 4.2

11.8 10.9 10.5 10.6 10.5

Perdas Técnicas¹ Perdas não Técnicas

0

100

200

300

400

500

600

700

800

2010 2011 2012(e) 1Q11 1Q12

654 717794

154 162

2822

46

5 8

682739 841

159 170

Capex Paid by Customers

8

+7.1%

Investments of R$ 170 million in 2Q12

Investments (R$ million) 2Q12 Investments (R$ million)

44

42

45

788

16

Maintenance

Client Service

System Expansion

Losses Recovery

IT

Paid by the Clients

Others

¹

1 – Maintenance Capex is the investment s made for the grid modernization and improvement in quality of service

9

+2.8%

+2.8%

Gross Revenues (R$ million)

Revenues increased by 3% due to residential and commercial classes expansion

1H11 1H12 2Q11 2Q12

4,490 4,5722,231 2,286

324 352

160 166

2,651 2,748

1,342 1,386

7,466 7,672

3,732 3,838

Net revenue ex-construction revenue

Construction revenues

Deduction to Gross Revenue

10

+19.1%

+23.1%

+4.1%

+16.3%

+18.0%

+9.6%

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

Cost of energy purchased impacted by growth of the market and average price

Operating Costs and Expenses ¹ (R$ million)

1H11 1H12 1Q11 1Q12

2,7003,187

1,341 1,651

707

775

359374

3,407

3,962

1,7002,025

Energy Supply and Transmission Charges PMS² and Others Expenses

11

Growth of 4% in operational expenses, below the inflation increase of 5%

1 – Others: Other contingencies provision, losses and agreements (excluding civil and labor) , reduction in call center expenses and other operational expenses

PMS and other expenses (R$ million)

¹ 2Q11 Personnel and Payroll

Fcesp Material and Third part

Action Plan 2011-2012/ DEC & FEC

project

Client Default (ADA)

Agreements and reversals in legal labor

and civil disputes

Others 2Q12

359 359 375 387 391 412 395 374 374

16 12 4

21 5 (22) (21)

12

Ebitda (R$ million)

Reduction in Ebitda due to higher cost of energy purchased

2Q11 Net Revenue Parcel A costs PMSO Others revenues and expenses

2Q12

525 525

275 261 243 243

61 (310)

(15) (17)

13

(11)

(58)

(30) (10)

Financial Results (R$ million)

Financial results negatively impacted by exchange rate and lower capitalized interests

1H11 1H12 2Q11 2Q12

376

185

162

247

70

69

14

537

167 255

57

Net Income (R$ million)

Net income variation impacted by an increase in energy purchased

(80) (12)

1H11 1H12 2Q11 2Q12

1 - The amount of regulatory assets and liabilities of 2Q12 does not consider the adjustment in the provision regarding the possible impacts of tariff review related to the 3Q11 and 1Q12 (R$ 69,7 million). As, the amount related to the 1H12 does not consider the adjustment related to the 2H11 of R$ 102.7 million.

Net Income - with regulatory assets and liabilities

Regulatory assets and liabilities

-69%

-78%

¹ ¹

-60% +4%

13

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

Lower cash generation due to higher cost of energy purchased and charges

2Q11 2Q12

654

259

2Q11 2Q12

1,043 1,083

2Q11 2Q12

108.9% 116.2%

% of CDI

6.8 6.1

Average Time - years

14

13.6% 11.3%

Net Debt Average Cost and Average Term (Principal)

Debt kept at comfortable level

1 - Adjusted Ebitda for the expenses related to liabilities with pension plan in the last 12 months

1.4x1.7x

Gross Debt/Ebitda Adjusted with Fcesp

2Q11 2Q12

2.9 3.1

Net Debt (R$ billion)

1.3x 1.3x

Net Debt/Ebitda Adjusted with Fcesp

Effective rate

¹

¹

Implementation of “Creating Value” project in 2010, that provided gains with cost control and increase in efficiency and revenue

Program initiatives:

• review in the operational process and support areas

• increase 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

Efficiency Program

17

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

Disposal of Property

Efficiency program and costs management

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.

2Q12 Results