InstitutionalMay, 2012                1
AES Brasil Group• Presence in Brazil since 1997• Operational Figures:      • Consumption units: 7.7 million      • Distrib...
AES Brasil widely recognized in 2009-2011       Management Excellence                          Quality and Safety       ...
Mission & visionsMission• Improving lives and promoting development by providing safe,reliable and sustainable energy solu...
Social responsability: annual investments                                                                                 ...
Shareholding structure                              AES Corp                       BNDES                                 C...
AES Tietê and AES Eletropaulo are listed                                                                               in ...
AES Brasil is the second largest group in the  Ebitda1 – 2011 (R$ Billion)                                                ...
AES Tietê is the 3rd largest privateGeneration installed capacity (MW) - 20121                                            ...
AES is among the largest distributionConsumers – Dec/2011                                                             play...
Energy Sector in Brazil
Energy sector in Brazil: business segments       Free Clients                     Distribution                           T...
Energy sector in Brazil:                                                                                contracting enviro...
Electric sector in Brazil:                                                                                                ...
Generation market overview   Installed capacity (GW)1                                                                     ...
Energy sector in Brazil:                                                                                          regulato...
Energy sector in Brazil:                                                                                regulatory methodo...
Timeline 2012 – 3rd cycle tariff reset    -ANEEL‟s Board ofDirectors approved opening      of public hearing              ...
AES Tietê overviewGeneration facilities                                                           18 hydroelectric plants...
Generated energy shows high                                                                            operational availab...
A significant amount of billed energy and net                                                  revenues comes from the bil...
Nova Avanhandava and Ibitinga power                                                        plants modernization investment...
Growth opportunities and                                                                   capacity expansion obligation“T...
Financial highlightsNet revenue (R$ million)                         Ebitda (R$ million)                                  ...
Steady earnings distribution on a                                                                                         ...
Debt profile Net debt (R$ billion)                                                                    Amortization schedul...
Capital markets  AES Tietê X Ibovespa X IEE                                                                       Daily av...
AES Eletropaulo overviewConcession area                   Largest electricity distribution company in Latin America      ...
Consumption Evolution     Total market1 (GWh)                                                   Consumption by class – 12 ...
Industrial Class      Industrial class X Industrial production in São Paulo State             15%             10%         ...
Residential classResidential class X Average income in São Paulo Metropolitan Area                                 1,800  ...
Investments focused on grid automation,                                                      maintenance and system expans...
SAIDI reduction as a result of                                                                                     action ...
SAIFI remains below regulatory limit    SAIFI - System average interruption frequency index              7.87             ...
Operational KPIsLosses (%)                                                             Collection rate (% over Gross Reven...
“Creating Value” Project          Internal process review:(i) operating activities; (ii) support functions      Objective:...
Financial highlights     Net revenues (R$ million)                                                           Ebitda (R$ mi...
Earnings distribution                                                                                                     ...
Debt profile     Net debt                                                                      2.0x                       ...
Capital markets     AES Eletropaulo X Ibovespa X IEE                                                                      ...
Attachments
Costs and expensesCosts and operational expenses1 (R$ million)                                                            ...
Costs and expensesCosts and operational expenses1 (R$ million)                                  PMS2 and other expenses (R...
AES Tietes expansion obligation                                                                                           ...
Apresentação institucional 1_q12_en_v8
Apresentação institucional 1_q12_en_v8
Apresentação institucional 1_q12_en_v8
Apresentação institucional 1_q12_en_v8
Apresentação institucional 1_q12_en_v8
Apresentação institucional 1_q12_en_v8
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Apresentação institucional 1_q12_en_v8

  1. 1. InstitutionalMay, 2012 1
  2. 2. AES Brasil Group• 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 sustainablepractices• Safety as value #1 2
  3. 3. AES Brasil widely recognized in 2009-2011  Management Excellence  Quality and Safety  Environmental Concern(AES Eletropaulo) (AES Tietê) (AES Tietê) (AES Eletropaulo) (AES Sul) (AES Brasil) (AES Eletropaulo) (AES Eletropaulo) (AES Tietê) (AES Brasil) (AES Tietê) (AES Tietê) (AES Tietê) (AES Eletropaulo) (AES Eletropaulo) 3
  4. 4. Mission & visionsMission• 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 4
  5. 5. Social responsability: annual investments of R$ 83 million Development and transformation of communities “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 Children educational development“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 Education on safety and efficiency in energy consumption “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. Converting consumers to clients 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. 5
  6. 6. Shareholding structure AES Corp BNDES C 50.00% + 1 share C 50.00% - 1 share P 0.00% P 100% T 46.15% T 53.85% Cia. Brasiliana de Energia C 71.35% C 76.45% C 99.99% C 99.00% P 32.34% P 7.38%T 99.70% T 99.99% T 99.00% T 52.55% T 34.87% AES AES AES AES AES Sul Infoenergy Uruguaiana Tietê Eletropaulo C = Common Shares P = Preferred Shares T = Total 6
  7. 7. AES Tietê and AES Eletropaulo are listed in BM&F Bovespa ¹ ¹ Free Float Others² Market Cap³ 16.1% 19.2% 56.2% 8.5% U$ 2.6 bi 24.2% 28.3% 39.5% 8.0% U$ 5.1 bi1 - 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 Tietê2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively3 - Base: 04/30/2012. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê 7
  8. 8. AES Brasil is the second largest group in the Ebitda1 – 2011 (R$ Billion) electric sector 5.4 4.9 3.8 2.9 2.9 2.0 1.9 1.5 1.2 0.7 2 CEMIG AES BRASIL CPFL TRACTEBEL NEOENERGIA CESP COPEL EDP LIGHT DUKE Net income1 – 2011 (R$ Billion) 3.0 2.4 1.6 1.6 1.4 1.2 0.5 0.3 0.3 0.1 AES BRASIL2 CEMIG CPFL NEOENERGIA TRACTEBEL COPEL LIGHT DUKE CESP EDP1 – excluding Eletrobrás Source: Companies‟ financial reports 82 – includes AES Atimus sale (aprox. R$ 1 billion in EBITDA and aprox. R$ 700 million in net income)
  9. 9. AES Tietê is the 3rd largest privateGeneration installed capacity (MW) - 20121 generator in Brazil Main privately held Companies  AES Tietê is the 3rd largest among private AES TIETÊ CPFL DUKE EDP 2,3% 2,4% 1,9% 1,6% NEOENERGIA generation companies TRACTEBEL 6,1% 1,2% ENDESA 0,8%  Approximately 78% of country’s generation LIGHT 0,8% installed capacity is state-owned2  Three mega hydropower plants under DEMAIS CHESF ³ 27% 9% construction in the North region of Brazil with FURNAS ³ 8% 18 GW in installed capacity ELETRONORTE ³ 8% – Santo Antonio and Jirau (Madeira River): 7 GW COPEL ITAIPU ³ 4% 6% – Belo Monte (Xingu River): 11 GW PETROBRÁS ELETRONUCLEAR ³ 5% CEMIG CESP 3% 6% 6% CGTEE ³ 1% ELETROSUL ³ 0,4% 1- Sources: ANEEL – BIG (March, 2012) and Companies websites 2- Source: Banks „ reports 9 Total Installed Capacity: 117 GW 3 – Eletrobrás, totaling 35%
  10. 10. AES is among the largest distributionConsumers – Dec/2011 players in Brazil 13% 30% • 63 distribution companies in Brazil 12% distributing 430 TWh AES Brasil AES Brasil • AES Brasil is one of the largest electricity 12% CPFL Energia CPFL Energia distribution group in Brazil: 5% 7% CEMIG Cemig – AES Eletropaulo: 45 TWh distributed, 7% 16% 10.5% of the Brazilian marketConsumption (GWh) - 2011 Neoenergia Neo Energia – AES Sul: 8.6 TWh distributed, 2.0% of the 13% Brazilian market Copel Copel 12%  Distribution companies’ operations are Light Light restricted to their concession areas 52% EDP EDP  Acquisitions must be only performed by 11% the holdings of economic groups Outros Outros 7% 6% 6% 6% 10
  11. 11. Energy Sector in Brazil
  12. 12. Energy sector in Brazil: business segments Free Clients Distribution Transmission Generation • Consumption of 113 TWh • 63 companies • 68 companies • 13 groups controlling 76% of (26% of Brazilian total market) • 430 TWh of energy • 68% private sector total installed capacity • Conventional sources: above distributed in 2011 • 22% private sector • High voltage transmission 3,000 kW • 1,862 power plants • 70 million consumers (>230 kV) • Alternative sources: between • 117 GW of installed capacity • 67% private sector • 98,648 km in extension 500 kW and 3,000 kW • 73% hydroelectric • Annual tariff adjustment lines (SIN¹) • Large consumers can • 17% thermoelectric • Tariff reset every four or • Regulated public service purchase energy directly five years with free access • 5% biomass from generators • Regulated public service • Regulated tariff (annually • 4% SHPP2 • Free contracting environment • Regulated contracting adjusted by inflation) • 1% Wind environment • Contracting environment –¹ Interconnected National System free and regulated markets 12² Small Hydro Power Plants Sources: EPE, Aneel, ONS and Banks‟ reports
  13. 13. Energy sector in Brazil: contracting environment Regulated market Free market Generators, Independent Power Producers Generators and Independent (IPPs), Trading companies and Auto producers Power Producers (IPPs) Auctions: New Energy Bilateral contracts (PPAs1) and Existing Energy Distribution companies Free clients • 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 PPA11 – Power Purchase Agreement 13
  14. 14. Electric sector in Brazil: demand and supply balance Static balance – Load x Supply (considering reserve energy1) 100,000 90,000 • Brazilian electric system Static balance - Load x Supply (MW avg) 80,000 presents a surplus in the 70,000 60,000 energy balance for the 50,000 years to come 40,000 30,000 • Low risk of rationing 20,000 • Expansion opportunities 10,000 - since this capacity is not 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% yet fully contracted 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 89,5981- 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 14
  15. 15. Generation market overview Installed capacity (GW)1 Growth by source - new auctions (GW) Total: 22 GW 166 171 156 162 141 148 133 136 19 123 5 8 11 14 2 117 2 3 Thermal 24 28 33 38 41 42 42 2,6 6 13 23 Renewables 110 110 110 110 110 110 110 110 110 110 10,6 Hydro 8,6 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Current installed capacity Auctioned Upcoming auctions • 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 benefit1- Source: EPE (Energetic Research Company), Ten-year Energy Plan 2020, May/20112- Amount related to thermal is an estimate of the Company 15
  16. 16. Energy sector in Brazil: regulatory methodologyTariff reset and readjustment• Tariff Reset is applied each 4 years for AES Eletropaulo − Base date: Jul/2011 • Parcel A Costs − Parcel A: costs are largely passed through to the tariff Energy − Non-manageable costs that are largely Purchase passed through to the tariff − Parcel B: costs are set by ANEEL Transmission − Incentives to reduces costs Sector Charges• Tariff Readjustment: annually − Parcel A : costs are largely passed through to the tariff Regulatory − Parcel B: cost are adjusted by IGPM +/- X(1) Factor Opex • Regulatory Opex: (PMSO) – Efficient operating cost determined by ANEEL (National Electricity Agency) X WACC Investment Remuneration • Remuneration Asset Base: Remuneration Asset Base – Prudent investments used to calculate the investment remuneration (applying X Depreciation WACC) and depreciation Depreciation Regulatory Parcel A - Non-Manageable Costs Ebitda Parcel B - Manageable Costs 16 1 – X Factor: index that captures productivity gains
  17. 17. Energy sector in Brazil: regulatory methodology3rd Cycle of tariff reset – X factor X FACTOR Pd Q T = + + Distribution Operational expenses DEFINITION Quality of service productivity trajectory Capture productivity Stimulate Implement OBJECTIVE gains improvement of operational expenses service quality trajectory Defined at tariff reset, Defined at each tariff Defined at tariff reset, considers the average readjustment, considers considers reference productivity of sector variation of SAIDI and company and APPLICATION adjusted by market SAIFI and comparative benchmarking growth and performance of discos methodologies consumption variation 17
  18. 18. Timeline 2012 – 3rd cycle tariff reset -ANEEL‟s Board ofDirectors approved opening of public hearing Response to Final definition audit report - Deadline to on ANEEL‟s -Release of ANEEL‟s public hearing Board of preliminary proposal of Regulatory Asset Base contributions Director-5.14% as economic effect meeting and -8.81% as average effect for clients April, April, April, April, May, May, 11th to June July, 10th 12th 23rd 26th 11th June. 4th 4th - Initial period of public hearing Tariff contribution Tariff reset Interaction adjustment public hearing - ANEEL with the incorporating in person provided regulator the settlement session information of tariff reset and technical notes
  19. 19. AES Tietê overviewGeneration facilities  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 201 - Amount of energy allowed to be long term contracted
  20. 20. Generated energy shows high operational availability Generated energy (MW avarage1) Generated energy by power plant (MW average1) 136% 7%130% 130% 4% 125% Agua Vermelha 124% 5% Nova Avanhandava 6% Promissão 9% 59% Ibitinga 1,753 Bariri 1,665 Barra Bonita 1,599 1,582 1,612 10% Other Power Plants* 2009 2010 2011 1Q11 1Q12 Generation - Mwavg Generation/Physical guarantee 1 – Generated energy divided by the amount of hours * Caconde, Limoeiro, Mogi and SHPPs 21
  21. 21. A significant amount of billed energy and net revenues comes from the bilateral contract with AES EletropauloBilled energy (GWh) Net revenues (%) 94% 88% AES Eletr 94% 14,729 15,122 14,706 117 301 554 94% Outros co 117 301 1,150 1,340 1,150 204 1,340 331 2,331 1,980 426 215 MRE 1,680 2,331 1,980 346 1,135 1,188 1,554 Mercado 1,535 1% 4,867 6%3% 11,108 11,108 11,108 162 3,645 108 570 2% 11,138 11,108 11,108 1% 424 1,256 3% 8,578 587 3% AES Eletropaulo 8,045 2% 1% 2% 2,526 2,879 3% Other bilateral contracts AES Eletropaulo 2% 2009 1 2010 2011 1Q11 1Q12 SpotEletropaulo AES Market Other bilateral contracts 2008 2009 2010 9M10 9M11 MRE Market contracts Spot bilateral Other AES Eletropaulo MRE2 Spot Market Other bilateral contracts 1 – Leap Year 2 – Energy Reallocation Mechanism MRE2 Spot Market 22
  22. 22. Nova Avanhandava and Ibitinga power plants modernization investments Investments (R$ million) 1Q12 Investments 175 86% 19 82 174 11% 12 156 3% 38 4 21 70 2 34 19 Equipment and Maintenance 2010 2011 2012(e) 1Q11 1Q12 New SHPPs * IT Projects Investments New SHPPs**Small Hydro Power Plants 23
  23. 23. 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) and A-3 (2012) auctions - Project registered in 2012 A-5 auction: deadline to turn in the gas contract is June 1st, 2012 - Environmental license suspended by court injunction. AES Tietê presented its defense on April, 27th 2012 - Next steps: Fullfillment of requirements to obtain the installation license“Thermal Araraquara” Project - Purchase option acquired in March, 2012 - Natural gas combined cycle thermal plant, with 579 MW of installed capacity - Registered for A-5 energy auction in 2012 - High sinergy potential with Thermal São PauloExpansion Obligation - April 26th: Presentation of the Company‟s capacity expansion plan (Thermal São Paulo Project) 24
  24. 24. Financial highlightsNet revenue (R$ million) Ebitda (R$ million) 1,466 1,255 1,320 9 1,254 1,255 1,320 1,035 1,048 1,754 1,886 9 1,670 1,309 1,311 423 338 1,309 1,311 416 540 (54) 2009 2010 2011 1Q11 1Q12 2009 2008 2010 2009 2011 2010 1Q11 9M11 9M10 1Q12 75% 75% 78% 81% 78% Recurring Non-recurring Ebitda Margin 25
  25. 25. Steady earnings distribution on a quarterly basisNet income and dividend pay-out1 (R$ million) 110% 117% 109% • Dividends distribution practice: 11% 11% 11% 100% of net income – 25% of minimum pay-out 706 737 according to bylaws – Average payout since 2006: 31 106% – Average dividends since 2006: R$ 745 million per year 845 742 706 193 246 (36) 2009 2010 2011 1Q11 1Q12 Pay - out Yield Pref Recurring Non- recurring 261 – Gross value
  26. 26. Debt profile Net debt (R$ billion) Amortization schedule – principal (R$ million) 0.3x 0.3x 0.3x 0.4x 0.3x 300 300 300 0.4 0.5 0.4 0.4 0.5 2009 2010 2011 1Q11 1Q12 2013 2014 2015 Net Debt Net Debt / EBITDA • March, 2012: – Average debt cost in 1Q12 was 115% of CDI1 p.a. or 15% p.a. – Average debt maturity of 2.0 years 271 – Brazilian Interbank Interest Rate
  27. 27. Capital markets AES Tietê X Ibovespa X IEE Daily avg. volume (R$ thousand) 12 Months 1 130 + 19% 14,125 120 13,922 12,934 110 + 11% 10,187 + 6% 4,239 3,505 3,397 100 + 4% 2,101 -7% 90 9,683 9,537 10,620 8,086 80 70 2009 2010 2011 YTD Apr/12 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Ibovespa IEE² GETI4 TSR³ GETI3 Preferred Common • Market Cap4: US$ 5.1 billion • BM&FBovespa: GETI3 (common shares) and GETI4 (preferred shares) • ADRs negotiated in US OTC Market: AESAY (common shares) and AESYY (preferred shares)1 – Index: 04/29/2011 = 100 2 – Electric Energy Index 3 – Total Shareholders‟ Return 4 – Index: 04/30/2012 28
  28. 28. 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 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 30
  29. 29. Consumption Evolution Total market1 (GWh) Consumption by class – 12 months (%) 9 15 43,34545,000 41,243 41,269 43,345 45,102 41,269 2640,000 7,911 8,284 7,383 6,832 7,911 40 6,83235,00030,000 22,366 2825,000 20,71420,000 3,823 4,149 18 34,436 35,434 34,436 36,817 35,434 33,86015,000 11,119 11,146 2,040 1,906 3710,000 17,437 18,216 27 5,000 9,078 9,239 0 2009 2010 2011 1Q11 1Q12 Brazil AES Eletropaulo 2008 2009 2010 1H10 1H11 Free Clients Total Market Captive Market Free Clients Residential Commercial Industrial Others 31 1 – Net of own consumption
  30. 30. Industrial Class Industrial class X Industrial production in São Paulo State 15% 10% 5% 0% • Industrial consumption is -5% -10% influenced by manufacturing Economic crisis Economic recovery -15% industry performance in São Paulo Jul/07 Feb/08 Sep/08 Apr/09 Nov/09 Jun/10 Jan/11 Aug/11 Mar/12 State Industrial production SP (% 12 months) Industrial (% 12 months) Consumption of industrial class by activity1 – AES Eletropaulo • Recent slowdown is influenced by the decrease of industrial production in 2011 and 2012 Vehicles, Chemical, Rubber, Plastic Other and Metal industries products 52% 48% 321 – As of March, 2012.
  31. 31. Residential classResidential class X Average income in São Paulo Metropolitan Area 1,800 4,800 Average Income R$ - SP (q-2¹) • Residential consumption driven Residential (GWh) 1,600 4,300 by average income 1,400 3,800 • Income expansion trend in São Paulo Metropolitan Area will 1,200 3,300 sustain growth of residential class 1,000 2,800 • Average annual growth (2003- 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 2011): Avg Real Income R$ - SP (q-2¹) Residential (GWh) – total residential market: 5.5% y.o.yConsumption per consumer (in kWh) – consumption per consumer: 2.1% y.o.y - 9.4%258  Consumption per consumer is Rationing still 9.4% lower than in 229 234 223 228 219 the period before the rationing 220 213 203 207 199 192 1 - Two quarters of delay in relation to consumption 332000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  32. 32. Investments focused on grid automation, maintenance and system expansion Investments breakdown (R$ million) Investments 1Q12 (R$ million) 53 744 6800 682 7 29700 46 7 28600 516 530 22 383 16500 37 44400 22 715 654300 478 513200 362 Maintenance100 Client Service System Expansion 0 Losses Recovery 2009 2010 2011(e) 9M10 9M11 IT Capex Paid by Customers Paid by the Clients Others 34
  33. 33. SAIDI reduction as a result of action plan implementation SAIDI - System average interruption duration index 10.09 - 26% 9.32 10.09 8.68 9.32 8.68 11.86 10.60 10.36 11.86 10.60 10.36 3.47 2.57 1 1 2009 2010 2011 3M11 3M12 2009th 2010 2011 8th 7th 6 SAIDI (hours) SAIDI Aneel Reference SAIDI (hours) SAIDI Aneel Reference ABRADEE ranking position among the 28 utilities with more than 500 thousand customers ► 2012 SAIDI ANEEL Reference: 8.67 hoursSources: ANEEL, AES Eletropaulo and ABRADEE 351 – Accumulated 3 months (Jan-Mar) 2011 and 2012
  34. 34. SAIFI remains below regulatory limit SAIFI - System average interruption frequency index 7.87 7.39 6.93 - 22% 7.87 7.39 6.93 6.17 5.43 5.45 1.80 1.40 6.17 5.43 5.45 1 1 2009 2010 2011 3M11 3M12 7th 3rd 4th 2009 2010 2011 SAIFI (times) SAIFI Aneel Reference SAIFI (times) SAIFI Aneel Reference ABRADEE ranking position among the 28 utilities with more than 500 thousand customers ► 2012 SAIFI ANEEL Reference: 6.87 timesSources: ANEEL, AES Eletropaulo and ABRADEE 361 – Accumulated 3 months (Jan-Mar) 2011 and 2012
  35. 35. Operational KPIsLosses (%) Collection rate (% over Gross Revenues) 11.8 10.9 10.5 10.8 10.4 5.3 4.4 4.3 4.0 4.0 6.5 6.5 6.5 6.5 6.4 2009 2010 2011 1Q11 1Q12 Technical Losses Commercial Losses ANEEL References: From Jul/09 to Jun/10: 12.32% From Jul/10 to Jun/11: 12.45% 37
  36. 36. “Creating Value” Project Internal process review:(i) operating activities; (ii) support functions Objective: to operate Target definition for productivity within the regulatory increase framework for Reassess organization structure operational costs, Review supply management and seek benchmark position in theReassess and reinforce non-technical losses initiatives sector 38
  37. 37. Financial highlights Net revenues (R$ million) Ebitda (R$ million) 2,413 2,848 9,697 9,836 8,786 426 934 426 1,775 87 89 339 87 357 - 442 301 58 197 202 245 332 2,423 2,472 1,607 1,648 1,486 1,630 1,491 1,473 5491,325 1,326 318 134 415 136 182 2009 2010 2011 1Q11 1Q12 2009 2008 2010 2009 2011 2010 1Q11 9M10 1Q12 9M11 Regulatory assets and liabilities Recurring Non-recurring Regulatory assets and liabilities 1 Non-recurring Ebitda 391 – Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 707 million impact on Ebitda
  38. 38. Earnings distribution on semi-annual basis Net income and dividend payout1 (R$ million) 114.4% 140.0% 93.4% 120.0% 54.4% 100.0% 80.0% 60.0% 40.0% 20.0% 28.6% 17.1% 0.0% 20.4% • Dividends distribution practice: 1,572 distribution above the minimum 1,348 1,156 required 1.572 114.4% 652 140.0% - 25% of minimum pay-out according 93.4% 350 1.348 120.0% 1.156 54.4% 100.0% to bylaws 80.0% 374 652 60.0% – Average payout since 2006: 83% 236350 40.0% 20.0% per year 20.4% 374 28.6% Pay-out 287 17.1% Yield0.0% PN 160 236 – Average dividends since 2006: 287 160 R$ R$ 904 million per year 762 282 622 634 762 282 92 110 622 634 190 92 11098 13 190 98 2009 2010 2011 1Q11 1Q12 2009 2010 Pay-out 2011 1Q11 Yield PN 1Q12 Net Income - ex one-off and regulatory assets and liabilities Regulatory assets andand liabilities Regulatory assets liabilities One-off Série31 – Gross amount One-off 402– Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income
  39. 39. Debt profile Net debt 2.0x 1.6x 1.6x 1.4x 1.3x 1.4x 2.5 2.4 2.4 0.9x 0.8x 0.9x 0.9x • March, 2012: 2.3 2.4 - Average debt cost: 11.9% p.a. - Average debt maturity: 6.9 years 2009 2010 2011 1Q11 1Q12 2009 2010 2011 1Q11 1Q12 Net Debt (R$ billion) Gross Debt/Ebitda Adjusted with Fcesp Net Debt/Ebitda Adjusted with Fcesp Amortization schedule – principal (R$ million) 1.154 0.5% 72% 579 753 46 496 421 363 389 60 385 28% 70 277 52 282 64 61 533 49 56 351 436 400 302 337 321 228 226 2012 2013 2014 2015 2016 2017 2018 2019 2020 - CDI 1 IGP - DI 2 Others 2028 Local Currency (ex FCesp) Fcesp 411 – Brazilian Interbank Interest Rate 2 – Inflation Index 3 – Pension Fund
  40. 40. Capital markets AES Eletropaulo X Ibovespa X IEE Average daily volume (R$ thousand) 12 meses 1 35,756 C 125 B + 20% A 115 26,897 24,496 105 21,960 - 4% 95 - 10 % 85 - 19% 75 65 Mar-11 May-11 Jul-11 Oct-11 Dec-11 Feb-12 Apr-12 2009 2010 2011 YTD 20121 Ibovespa IEE² AES Eletropaulo PN AES Eletropaulo TSR³ A Ex dividends: 04/30/2011 B Ex dividends: 08/11/2011 C Material Fact 10/04/2012: technical notes published by Aneel regarding the calculation of the preliminar tariff review rate, including the regulatory asset basis . • Market cap4: U$ 2.6 billion • BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares) • ADRs at US OTC Market: EPUMY (preferred shares)1 – Information until 04/30/2012. Index: 12/30/2011 = 100 2 – Electric Energy Index 423 – Total Shareholder Return 4– Index: 04/30/12. Calculation includes only preferred shares
  41. 41. Attachments
  42. 42. Costs and expensesCosts and operational expenses1 (R$ million) 415 433 420 433 420 415 351 187 174 187 201 174 112 201 117 239 246 214 245 24678 245 214 51 29 49 66 2008 2009 20102009 2011 2010 1Q11 2011 1Q12 Energy Purchase, Transmission and Connection Charges, and Water Resources Other Costs and Expenses 21 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 44
  43. 43. Costs and expensesCosts and operational expenses1 (R$ million) PMS2 and other expenses (R$ million) 1,306 1,255 1,267 6,745 6,956 254 132 6,431 165 6,745 6,431 1,255 1,267 5,893 1,306 1,255 1,306 5,006 5,129 352 443 513 1,193 970 909 5,689 401 5,125 5,490 348 5,490 1,707 1,937 4,700 5,125 700 647 70 84 4,036 401 4,220 622 348 132 126 1,359 1,535 185 151 2009 2010 2011 1Q11 1Q12 2009 2010 2011 1Q11 1Q12 2008 2009 2010 9M10 9M11Energy Supply and Transmission Charges PMS² and Others Expenses PMS² and Others Expenses Total Personnel and Payroll Material and Third Party Others 1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 45
  44. 44. AES Tietes expansion obligation Efforts being made Privatization Notice Judicial Notice: AES Tietê was In March, 19th the by the Company to established the Aneel informed summoned to answer a Company‟s appeal The Company was notified meet the obligation :obligation to expand the that the issue is Lawsuit filed by the was denied. Thus, by the State of São Paulo installed capacity in not related to State of São Paulo, on April, 26th AES Attorneys Office to present which requested the • Long-term energy 15% (400 MW) until the concession its understanding on the Tietê presented 2007, either in agreement and fulfillment of the “Thermo São Paulo” contracts (biomass) matter, having filed its greenfield projects must be obligation in 24 months. project as the plan response on time, the totaling an average of and/or through long addressed with proceedings were ended, An injunction was to fullfill the term purchase the State of São since no other action was granted in order to have obligation to 10 MW agreements with new Paulo taken by the Attorneys a project submitted expand the installed plants Office within 60 days. capacity. • SHPP São Joaquim - started operating in July, 2011, with 3 MW of installed capacity 1999 2007 Aug/08 Oct/08 Jul/09 Sep/10 Sep/11 Nov/11 Apr/12 • SHPP São José - started operating in March, 2012, with 4 MW of installed Company faces restrictions until capacity Popular Action: deadline: In response to a Popular Lawsuit: Due to the plaintiffs failure • Insufficiency of hydro resources Action (filed by The Company • Thermal SP - Project to specify the persons that • Environmental restrictions individuals against the should be named as appealed to the of a 550MW gas fired Federal Government, Defendants, a favorable State of Sao • Insufficiency of natural gas supply Aneel, AES Tietê and thermo plant decision was rendered by Paulo State Court• New Model of Electric Sector (Law # Duke), the Company the first Instance Court of Appeals and 10,848/2004), which forbids bilateral presents its defense the injunction was • Thermal Araraquara (an appeal has been filed) agreements between generators and before the first instance kept - Acquisition of a distributors purchase option 46
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