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Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
Apresentação institucional 2Q11
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Apresentação institucional 2Q11

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  • 1. InstitutionalAugust, 2011 1
  • 2. AES Brasil Group• Presence in Brazil since 1997• Comprised of seven companies in the sectorsof energy generation, distribution, trade andtelecommunications• 7.6 thousand AES Brasil People• Investments 1998-2010: R$ 6.9 billion• Good corporate governance practices• Sustainable practices in businesses• Safety as a main value• Strong cash generation capacity• 25% of minimum pay-out according to bylaws• Differentiated practice of dividend distributionsince 2006: – AES Tietê: 100% of net income on quarterly basis – AES Eletropaulo: distribution above the minimum required (25% of net income) on semi-annually basis 2
  • 3. AES Brasil widely recognized in 2009-2011  Management excellence  Quality and safety  Environmental concern (AES Tietê)(AES Eletropaulo) (AES Tietê) (AES Eletropaulo) (AES Sul) (AES Brasil) (AES Eletropaulo) (AES Tietê) (AES Eletropaulo) (AES Brasil) (AES Tietê) (AES Tietê) (AES Eletropaulo) (AES Eletropaulo) 3
  • 4. 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% C 98.25% C 99.99 %T 99.70% T 99.99% T 99.00% T 52.55% T 34.87% T 98.25% T 99.99 % AES AES AES AES AES AES Eletropaulo AES Sul Infoenergy Uruguaiana Tietê Eletropaulo Com Rio¹ Telecom¹ C = Common Shares P = Preferred Shares 1 – AES Atimus T = Total 4
  • 5. Listed Companies Shareholding Composition ¹ ¹ Free Float Others2 16.1% 19.2% 56.2% 8.5% 24.2% 28.3% 39.5% 8.0%1 – parent companies, AES Corp and BNDES, have equal voting capital on the Companies: 38.2% on AES Eletropaulo and 35.7% on AES Tietê2 – includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively 5
  • 6. AES Brasil is the second largest group in Ebitda1 – 2010 (R$ Billion) electric sector 4.5 4.2 3.4 3.0 2.6 2.0 1.6 1.6 1.5 0.6 CEMIG AES BRASIL CPFL NEOENERGIA TRACTEBEL CESP EDP LIGHT COPEL DUKE Net Income1 – 2010 (R$ Billion) 2.3 2.2 1.8 1.6 1.2 1.0 0.6 0.6 0.2 0.1 CEMIG AES BRASIL NEOENERGIA CPFL TRACTEBEL COPEL EDP LIGHT DUKE CESP 61 – excluding Eletrobrás Source: Companies’ financial reports
  • 7. AES Tietê is an important player among private energy generators Generation Installed Capacity (MW) - 2011 Privately held companies AES TIETÊ DUKE 2% 2% TRACTEBEL  AES Tietê is the 2nd largest among private 6% generation companies and 10th largest overall COPEL 4%  10 largest gencos correspond to 62% of the total PETROBRÁS Others 5% installed capacity 37% CEMIG 6%  There are three mega hydropower plants under ITAIPU construction in the North region of Brazil with 18 GW 6% in installed capacity CESP 6% – Santo Antonio and Jirau (Madeira River): 7 GW CHESF Eletronorte 9% FURNAS 8% – Belo Monte (Xingu River): 11 GW 8% Total Installed Capacity: 115 GW 7Source: ANEEL (Regulator) – BIG (August, 2011)
  • 8. AES Brasil is the largest distribution group in BrazilConsumption (GWh) - 2010 13% • 64 discos in Brazil distributing 419 TWh 40% 12% AES Brasil • AES Brasil is the largest electricity distribution group in Brazil: CPFL Energia 10% – AES Eletropaulo: 43 TWh distributed, Cemig representing 10.3% of the Brazilian 7% 6% 6% market 6% Neo EnergiaConsumers – Dec/2010 – AES Sul: 9 TWh distributed, Copel representing 2.2% of the Brazilian 12% market 30% Light 12%  There is a limited opportunity for EDP competition in Brazil as discos are restricted to operate within their Outros 12% concession areas 5% 7% 7% 16% 8
  • 9. AES Tietê OverviewGeneration facilities  17 hydroelectric plants within the states of São Paulo and Minas Gerais  30-year concession valid until 2029; renewable for another 30 years  Installed capacity of 2,660 MW, with physical guarantee1 of 1,281 MW  Almost all the amount of energy that AES Tietê can sell in the long term is contracted to AES Eletropaulo until the end of 2015  As a pure energy generator, AES Tietê can only invest in its core business  338 employees 101 - Amount of energy allowed to be long term contracted
  • 10. Energy sector in Brazil: supply perspectivesInstalled Energy Capacity in Brazil1  Total installed capacity is expected to reach 171 GW by 2020  Brazilian energy matrix is not expected to materially change over the next 10 years 2011: 115 GW 2020: 171 GW 2 SHPP: 4% th: 4.5% p.a. Natural gas: 7% Annual Grow 2 SHPP: 4% Biomass: 5% Natural gas: 8% Biomass: 5% Oil: 5% Oil: 3% Nuclear: 2% Nuclear: 2% Others: 17% Coal: 2% Hydro: 67% Diesel: 1% Others: 10% Hydro: 73% Coal: 2% Diesel: 1% Wind: 7% Wind: 1% Steam: 1% Steam: 0% 111- Source: EPE (Energetic Research Company), Ten-year Energy Plan 2020, May/2011 2 - Small Hydro Power Plant
  • 11. Energy sector in Brazil: contracting environment Regulated Market Free Market Auctions Spot Market PPAs1 Trading Trading Distribution Companies Companies Companies Free Clients Free Clients • Main auctions (reverse auctions): Distribution – New Energy (A-5): Delivery in 5 years, 15- Companies 30 years regulated PPA1 – New Energy (A-3): Delivery in 3 years, 15- 30 years regulated PPA – Existing Energy (A-1): Delivery in 1 year, 5-15 years PPA 121 – Power Purchase Agreement
  • 12. Billed energy growth due to high availability and bilateral contracts Energy Generation (MW average1) Billed Energy (GWh) 14,706 14,729 117 301 138% 139% 13,148 1,150 1,340 130% 331 125% 2,331 1,980 1,680 118% 7,881 -5% 7,507 132 201 949 847 1,146 11,138 11,108 11,108 1,425 1,809 1,665 1,599 1,608 5,653 5,034 1,512 2 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 3 Generation - MWAvg Generation / Physical Guarantee AES Eletropaulo MRE Spot market Other bilateral contracts 131- Generated energy divided by the amount of hours 2-Leap year 3- Energy Reallocation Mechanism
  • 13. Investments in the modernization of Nova Avanhandava, Ibitinga and Caconde power plants Investments (R$ million) 1H11 Investments 81% 169 44% R: 13 C AG 82 72 156 14% 57 12 10 5% +199% 13 24 70 62 43 3 22 2009 2010 2011 (e) 1H10 1H11 Equipment and Modernization New SHPPs* Investments New SHPPs**Small Hydro Power Plants IT projects 14
  • 14. Brazil needs to add 25 GW2 up to 2020 1 Growth by source – new auctionsInstalled Capacity – GW CAGR Total = 25 GW 2 + 5% 166 171 156 163 149 136 142 14 19 133 8 11 2 116 124 2 3 5 Thermal Hydro 29 34 38 42 42 42 6 GW2 14 23 24 8 GW 6 110 110 110 110 110 110 110 110 110 110 Wind/ Renewable 11 GW 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Current installed capacity Auctioned Upcoming auctions 2 1 – Source: EPE (Ten-year Energy Plan – 2020) 2 – Amount related to thermal power2 110 is an estimate of the Company 11 14 19 23 24 29 34 38 42 8 5 3 6 plants 15
  • 15. Gas fired thermal plant – new scenario considering recent discoveries Significant growth expectation for gas supply Gas production - 10³ boe/day1  Increase in natural gas production due to Pre- Salt activities 1,109  Expected growth of 11% p.a. from 2010 to 2020, 623 384 according to Petrobras 277 321 316 274 273 2005 2006 2007 2008 2009 2010 2014 2020 Brazil needs higher firm capacity, which creates opportunities for gas fired thermal plants Water inflow by region / load2  Lower reservoir levels (new run-of-the-river 6.2 5.7 power plants) create opportunities for thermal 5.4 4.7 plants 2001 2005 2009 2013 161 – Source: Petrobras (Petrobras Strategic Plan 2020) 2 – Source : ONS
  • 16. Expansion of 550 MW of installed capacityPlant localization (Canas/SP) through the Thermo SP Project • Project objectives - Expand installed capacity in the State of São Paulo ive r - Offer competitively energy prices lR o Su ad a í b 7.5 Km Pa r e ta k te r In • Project featuresWa J r ve R - Combined cycle using natural gas Ri s na ay - 2 gas turbines, 2 heat recovery boilers and 1 steam Ca g hw Canas Hi turbine ne tra peli Du te r Pi - Estimated investment of R$ 1.1 billionWa e in nL - Natural gas consumption: 2.5 million m3/day sio is m m ns 200 - Supply of gas pipeline: Campos Basin, Santos Basin or Tra Bolivia o ul Pa SP Sã o • Timetable o rm  Jan/11 – Filed the EIA/RIMA at Cetesb Te  Jun and Aug/11 - Public hearing hold in Lorena/SP and Canas/SP cities e Km lin e 3 . P ip - 2nd half of 2011: Power auction A-5 realization (expected) as 0 G Project Website: www.aestiete.com.br/termosaopaulo 17
  • 17. Financial highlights* Net Revenue (R$ million) Ebitda (R$ million) 3% 5% CAGR: CAGR: 1,254 1,255 1,320 -4% 9 -5% 1,605 1,670 1,754 678 643 862 825 1,309 1,311 (54) 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 78% 75% 75% 79% 78% Recurring Non-recurring Ebitda margin(*) 2009 and 2010 numbers in IFRS 18
  • 18. Practice of 100% pay-out on quarterly basis*Net Income and Dividend Pay-out1 (R$ million) 117% 120% 110% 1 6, 0% 100% 100% 1 4, 0% 12.0% 11.0% 11.0% 1 2, 0% 80% 1 0, 0% 60% 706 737 8, 0% 692 31 6, 0% 40% -5% 371 354 816 784 4, 0% 28 20% 2, 0% 383 0% (74) (40) (78) 0, 0% (36) 2008 2009 2010 1H10 1H11 Pay-out Yield Pref Recurring Non-recurring IFRS Effect 191 – Gross amount (*) 2009 and 2010 numbers in IFRS
  • 19. Debt profile Net Debt (R$ billion) Amortization Schedule – Principal (R$ million) 0.5x 0.3x 0.3x 0.3x 0.4x 300 300 300 0.6 0.4 0.4 0.4 0.5 2008 2009 2010 1H10 1H11 2013 2014 2015 Net debt Net debt / EBITDA • June, 2011: – Average debt cost in 1H11 was 113% of CDI1 p.a. or 13% p.a. – Average debt maturity of 2.8 years – Net debt: R$ 0.6 billion – Net debt/EBITDA: 0.5x 201 – Brazilian Interbank Interest Rate
  • 20. Capital Markets AES Tietê X Ibovespa X IEE Daily Avg. Volume (R$ thousand) 120 YTD1 13,922 110 +10% 12,978 10,187 +5% 4,239 8,160 3,447 100 2,101 -10% 2,692 90 9,683 9,531 8,086 5,468 80 Dec-10 Mar-11 Jun-11 GETI4 IEE IBOV 2008 2009 2010 1H11 Preferred Common • Common shares and preferred shares listed on BM&FBOVESPA under the tickers GETI3 and GETI4 • ADRs at US OTC Market under the tickers AESAY and AESYY 211 – Index: 12/30/2010 = 100
  • 21. 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, 1.2 million electricity poles and 6.1 million consumption units in a concession area of 4,526 km2  Total distributed volume of 43 TWh in 2010  As a pure energy distributor, AES Eletropaulo can only invest within its concession area  5,613 employees 23
  • 22. Energy sector in Brazil: regulatory methodologyTariff Reset and Readjustment• Tariff Reset is applied each 4 years for AES Eletropaulo • Parcel A Costs − Base date: Jul/2011 − Non-manageable costs that totally − Parcel A: costs pass trough the tariff Energy pass- through to the tariff Purchase − Losses reduction improve the pass- − Parcel B: costs are set by ANEEL Transmission through effectiveness Sector Charges• Tariff Readjustment: annually − Parcel A costs pass trough the tariff Reference • Reference Company: − Parcel B cost are adjusted by IGPM +/- X(1) Factor Company (PMSO) – Efficient cost structure, determined by ANEEL (National Electricity Agency) X WACC Investment Remuneration • Remuneration Asset Base: Remuneration Asset Base – Applicable investments used to calculate the Investment Remuneration X Depreciation Depreciation (applying WACC) and Depreciation Regulatory Parcel A - Non-Manageable Costs Ebitda Parcel B - Manageable Costs 24 1 – X Factor: index that capture productivity gains
  • 23. Energy sector in Brazil: demand perspectives Macroeconomic Scenario EPE’s1 Assumptions: GDP - Annual growth 2005-2009 2010 2011-2015 2016-2020 • Emerging markets will grow faster than World 3.4 4.6 4.5 3.9 developed economies, positively affecting Brazil 3.6 7.2 5.0 5.0 industrial sector in Brazil; Brazilian Consumption Evolution (TWh) • Recovery of investment rates, favorable credit conditions and labor market growth 4.6% p.a 659 • Domestic economy growth due to the 4.4% p.a. World Cup and Olympic Games 419 441 • Income elasticity of energy demand (2010- 393 389 358 378 331 346 2019): 0.98 • Households growth: 2.2% p.a 2004 2005 2006 2007 2008 2009 2010 2011 (e) 2020 251 - Source: EPE (Energetic Research Company)
  • 24. Consumption Evolution Total Market1 (GWh) 1H11 Consumption Share1 (GWh) CAGR: 2% 36% 6% 43,345 14%45,000  41,243 41,269 6% 36%40,000  7,911 7,383 6,83235,000  18% 13% +8% 26%30,000  20,714 22,366 26%25,000 20,000  3,823 4,149 19% 33,860 34,436 35,43415,000 10,000  17,437 18,216 5,000  Residential 0  Commercial 2008 2009 2010 1H10 1H11 Free Clients Captive Market Free Clients Industrial Others 26 1 – Net of own consumption
  • 25. Investments amounted R$ 325 million in 1H11 Investments Breakdown (R$ million) Investments 1H11 (R$ million) 5% :1 784 108 GR800  CA 682 26700  24 28 10 79600  516 13500  37 20400  325 72 759 +42% 654 229 10300  478 16200  315 213 Maitenance100  Client Service 0  System Expansion 2009 2010 2011(e) 1H10 1H11 Losses Recovery Capex Paid by Customers IT Paid by the Clients Others 27
  • 26. SAIDI & SAIFI SAIDI - System Average Interruption Duration Index SAIFI - System Average Interruption Frequency Index 8.41 7.87 7.39 10.92 10.09 9.32 9.20 11.86 10.68 12.52 10.40 6.17 5.43 6.34 5.48 5.20 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 5th 8th 7th 1st 7th 3rd SAIDI (hours) SAIDI Aneel Target SAIFI (times) SAIFI Aneel Target ABRADEE ranking position among the 28 utilities with more than 500 thousand customers ► 2011 SAIDI ANEEL Reference: 8.68 hours ► 2011 SAIFI ANEEL Reference: 6.93 times 28Sources: ANEEL, AES Eletropaulo and ABRADEE
  • 27. Operational Indexes Losses (%) Collection rate (% over Gross Revenues) 11.6 11.8 102.4 101.6 102.2 10.9 11.3 101.1 10.6 98.5 5.1 5.3 4.4 4.8 4.1 6.5 6.5 6.5 6.5 6.5 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 Technical Losses ¹ Commercial Losses 291 – Current technical losses used retroactively as a reference
  • 28. Financial Highlights* Net Revenues (R$ million) Ebitda (R$ million) % : 15 GR % CA 2,413 R: 9 CAG 9,69710,000  8,786 426 9,000  1,775 7,530 1,696 8,000  87 357 89 - 202 -15% 7,000  +5% 1,268 6,000  4,584 4,814 1,074 5,000  265 166 234 4,000  1,607 1,486 1,630 3,000  2,000  837 840 1,000  0  2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 Recurring IFRS Non-recurring 30(*) 2009 and 2010 numbers in IFRS
  • 29. Practice of dividend distribution on semi-annually basis* Net Income and Dividend Payout1 (R$ million) 114.4% 120.0% 35.0% 101.5% 93.4% 28.6% 100.0% 30.0% 20.4% 25.0% 80.0% 20.3% 1,348 20.0% 60.0% 15.0% 40.0% 1,156 350 10.0% 1,027 20.0% 5.0% 374 0.0% 329 162 0.0% -24% 709 93 537 245 836 162 117 698 689 346 376 2008 2009 2010 1H10 1H11 Pay-out Yield PN Net Income - ex one-off and regulatory assets and liabilities Regulatory assets and liabilities 311 – Gross amount One-off (*) 2009 and 2010 numbers in IFRS
  • 30. Debt ProfileNet Debt (R$ billion) Amortization Schedule – Principal (R$ million) 1.5x 1.4x 1.3x 0.9x 0.9x 1,047 580 3.0 867 2.7 49 439 2.5 2.4 2.4 347 347 391 278 56 285 64 244 67 46 44 531 52 60 281 301 335 375 200 225 225 180 2008 2009 2010 1H10 1H11 2H11 2012 2013 2014 2015 2016 2017 2018 2019 - 2028 Net Debt/Ebitda Adjusted with Fcesp Local Currency (ex FCesp) Fcesp ² Net Debt (R$ billion) • July, 2011: – Average debt cost in 2Q11 was 109% of CDI1 or 13.8% p.a. – Average debt maturity of 6.8 years – Net debt: R$ 3.0 billion – Net debt/EBITDA of 1.3x adjusted with Pension Fund 321 – Brazilian Interbank Interest Rate 2 – Pension Fund
  • 31. Capital MarketsAES Eletropaulo X Ibovespa X IEE Average Daily Volume (R$ thousand) A 28,096120 1H11 ¹ 29,000.00 27,000.00 25,677 24,496110 + 10% 25,000.00 +5% 21,960 23,000.00100 21,000.00 19,000.00 90 - 10% 17,000.00 15,000.00 80 Dec-10 Mar-11 Jun-11 2008 2009 2010 1H11 ELPL4 IBOV IEE A Ex dividends: 04/30/2011 • Common shares and preferred shares listed on BM&FBOVESPA under the tickers ELPL3 and ELPL4 • ADRs at US OTC Market 331 – Index: 12/30/2010 = 100
  • 32. Social Responsibility
  • 33. Social Responsibility“Casa da Cultura e Cidadania” Project • Over 5.2 thousand children, teenagers, and adults have been benefited • Own and incentive investments: approximately R$ 17 million in 2010 • Activities of acting, dancing, circus arts, visual arts, music, gymnastics, courses of income generation, and education of safe use of electrical power and the right use of natural resources • 7 operating units“Centros Educacionais Infantis Luz e Lápis” - Project • 300 benefited children between 1 and 6 years old • Own investments amounting R$ 2.1 million in 2010 • Units: Santo Amaro and Guarapiranga 35
  • 34. Social Responsibility Volunteering Program Distributing Acting to Energy of Transform Good Specific social mobilization or Opportunities for volunteering in emergency campaign. social organizations, which are partners of AES Brazil Winter clothes, Christmas Co-workers can enroll in campaign, among others. volunteer activities available at AES Brazil volunteering portal since September/09 www.energiadobem.com.br• Launched in December, 2008;• Objective: to get the co-workers committed to the transformation of low income communities and development of non-governmental institutions;• 1,199 volunteers 36
  • 35. Attachments
  • 36. Costs and ExpensesCosts and operational expenses1 (R$ million) 415 433 351 187 201 112 184 183 82 69 239 214 246 103 114 2008 2009 2010 1H10 1H11 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 38
  • 37. Costs and Expenses Costs and operational expenses1 (R$ million) PMS and Other Expenses (R$ million) 1,306 1,255 1,193 6,745 254 6,431 165 5,893 1,255 379 1,306 1,193 352 443 716 670 3,315 3,416 329 184 160 670 716 5,125 5,490 249 4,700 189 700 647 2,644 2,700 485 297 307 3 2008 2009 2010 1H10 1H11 2008 2009 2010 1H10 1H11 Energy Supply and Transmission Charges PMS² and Others Expenses Personnel Materials and third party services Others1 – Do not include depreciation and amortization2 - Personnel, Material, Third Party Services and Other Costs and Expenses3 – In 2009 expenses with Pension Fund increased due to inflation rate (IGP-M) increase and reversal of R$ 63 million in 4Q08 caused by actuarial liability adjustment 39
  • 38. Expansion Requirement of 15% Increase installed capacity in Sao Paulo State by 15% (400 MW), either in greenfield projects or through long term purchase agreement with new plants The obligation was supposed to be accomplished by December 2007, however AES Tietê was not able to comply with this requirement due to the following restrictions: – Insufficient remaining hydro resources within the State of São Paulo – Environmental restrictions – Insufficiency of gas supply / timing issue – More restricted regulation on energy sale established by the New Model of Electric Sector (Law # 10,848/2004) which eliminated the self dealing• In August 2008, Aneel informed that the issue is not linked to the concession• On July 27, 2009, AES Tietê was notified by the State Government Attorney’s Office to present arguments on compliance with the expansion obligation – The Company filed a response on July, 29th, which exhausts the procedure for notification. Possible deployment depends on new manifestation of the Prosecution• Popular law action against Federal Government, Aneel, AES Tietê, and Duke – 2008 – In October, defense filed on first instance by AES Tietê; In December, the author replied AES Tietê defense – 2010 – In September, due to the plaintiffs failure to specify the individuals that should be named as Defendants, a favorable decision was rendered by the 1st Instance Court (but there can be appeals)• Efforts being made by the Company to meet the obligation: – Signing of two long-term energy contracts, from sugar cane biomass, totaling 10 MW – SHPP São Joaquim, which started operating in July, 2011 with 3 MW of installed capacity, in São João da Boa Vista (State of São Paulo) – SHPP São João, with 4 MW of installed capacity, in São João da Boa Vista (State of São Paulo), to be operational in 2011 – Project development of a 550MW gas fired thermal plant, located in Canas (State of São Paulo) 40
  • 39. Eletrobras Lawsuit State-owned Eletropaulo was On July 7, the spun-off into four Eletrobras, after judge determined companies and, winning the Eletropaulo and according to our Eletrobras and Eletrobras Stated-owned interest CTEEP to understanding CTEEP appealed requested the 1st Eletropaulo calculation present their based on the to the Superior level of courtborrowed money discussion, filed considerations, spin-off Court of Justice judge to appoint from Eletrobras an Execution Suit which occurred agreement, the (SCJ) an expert to collect the due on Aug, 10, for discussion was amount the definition of transferred to the expert CTEEP Next Steps: 1 - The auditing procedure will be Nov/86 Dec/88 Jan/98 Apr/98 Sep/01 Sep/03 Oct/05 Jun/06 May/09 Dec/10 Jul/11 concluded in at least 6 months 2 - After conclusion of the expert work, the 1st level of court decision will be State-owned released The 2nd level of Eletrobras Eletropaulo and Privatization requested the 3 - Appealing to court excluded The SCJ decided Eletrobras event . State- AES Eletropaulo beginning of the the 2nd level of to send the disagreed on how owned appraisal court from the Execution Suit to calculate Eletropaulo discussion based back to the 1st procedure, which is 4 - Appealing to interest over that became AES under 5th Civil on the spin-off level of court the 3rd level of loan and a lawsuit Eletropaulo agreement Court analysis. court was started 41
  • 40. Shareholders AgreementOn Dec 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship as shareholders ofBrasiliana and its controlled companies. The Agreement is available at www.aeseletropaulo.com.br/riShareholders can dispose its share at any time, considering the following terms:Right of 1st  Any party with an intention to dispose its shares should first provide the other party the right to buyrefusal that participation at the same price offered by a third partyTag along  In the case of change in Brasiliana’s control, tag along rights are triggered for the followingrights 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 sharesDrag along  Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of allrights its shares at the time, if the Right of 1st Refusal is not exercised by offered party 42
  • 41. Brazilian Main Taxes AES Tietê AES Eletropaulo• Income Tax / Social Contribution: • Income Tax / Social Contribution: – 34% over taxable income – 34% over taxable income• ICMS (VAT tax) • ICMS: 22% over Revenue (average rate) – deferred tax – Residential: 25%• PIS/Cofins (sales tax): – Industrial and Commercial: 18% – Eletropaulo´s PPA: 3.65% over Revenue – Public Entities: free – Other bilateral contracts: 9.25% over Revenue • PIS/Cofins: minus Costs – 9.25% over Revenue minus Costs 43
  • 42. Contacts: ri.aeseletropaulo@aes.com ri.aestiete@aes.com + 55 11 2195 7048The statements contained in this document with regard to the business prospects, projected operating and financialresults, and growth potential are merely forecasts based on the expectations of the Company’s Management inrelation 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.

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