2. 2010 Highlights
• Energy volume consumption higher than 2009: captive market 2.9% and free clients 15.8%
• Losses: 90 bps lower than 2009
• Approximately 10% reduction in SAIDI and SAIFI in 2010
• Investments of R$ 682.3 million, 32.2% higher than 2009
• Ebitda amounted R$ 2,412.8 million, 35,9% higher than 2009
• Net income of R$ 1,347.7 million, 16.5% higher than 2009
• IFRS: positive impact of R$ 322.6 million in dividends
• Receipt of 2nd installment due to São Paulo Municipality Agreement: R$ 75.5 million
• Financial settlement of the AES EP Telecom quotas in the amount of R$ 265.4 million
• Provision reversal of R$ 86.9 million (pension supplementation)
• Final settlement with Banco Santos S.A. in the amount of R$ 106.3 million
• Proposal for complementary dividends distribution and interest on equity totalizing R$ 916.4 million,
composed by R$ 5.16 per ordinary share and R$ 5.68 per preferred share, to be approved on the
OGSM, to be held on April 29, 2011
2
3. Regulatory Aspects
• Positive tariff adjustment index of 8.00% related to 2010/2011 cycle, with an average effect of
1.62% to the consumers
• New methodology proposal for the 3rd Tariff Review Cycle on study by Aneel, with a possible
postponing of the new tariffs application that according to the concession contract is should occur
as from July 4th, 2011
• On January 11th, 2011, Aneel open a proposal in public hearing in order to define the procedures for
the Discos that would have its tariff review before the approval of the methodology
• Aneel's proposal: maintain the tariff as it is for the discos with the date of the tariff review before to
the methodology approval, expected to happen up to September 2001, having the tariff review of
the discos up to 90 days after its approval
3
4. Residential and commercial class growth
higher than the captive market performance
Consumption Evolution (GWh)¹
+3.5% +1.7% +3.1% +1.2% +2.9% +15.8% +5.0%
43,345
41,269
35,434
34,436
15,546
15,014
11,081
10,752
6,032 6,137 6,832 7,911
2,638 2,671
Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market
and Others
2009 2010
4
1 – Own consumption not considered
5. Collection rate and losses reflect continuous efforts
of operational improvements
Collection rate (% over gross revenues) Losses - (% - last 12 months)
11.6 11.8
10.9
101.1 102.4
98.5
5.1 5.3 4.4
6.5 6.5 6.5
2008 2009 2010 2008 2009 2010
Technical Losses¹ Commercial Losses
5
1 - Current Technical Losses used retroactively as reference
6. Investments and initiatives improved
the SAIFI performance
SAIFI – System Average Interruption Frequency Index
12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
11.72 11.74
11.34
11.00 11.00
8.49 8.41
7.87
7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39
6.93 6.93
6.34 6.41 6.29 6.29
6.17 6.16 6.12 6.12
5.96 5.85
5.65 5.61 5.52 5.55
5.42 5.30
5.20
AES Eletropaulo Brazil Aneel Target - AES Eletropaulo
Source: ANEEL e AES Eletropaulo 6
7. Investments and recovery plan implemented from
April led to SAIDI reduction
SAIDI – System Average Interruption Duration Index
22.00
21.00 21.00 21.00 21.00
20.00 20.00 20.00
19.00 19.00 19.00 19.00
18.70
16.63
16.08
12.74 12.66 12.72
12.45 12.39 12.22
11.34 11.90 12.09
10.92 11.79 11.65
11.25
10.84 10.68
10.18 10.30
10.09
9.20 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32
8.90 8.68 8.68
AES Eletropaulo Brazil Aneel Target - AES Eletropaulo
Source: ANEEL e AES Eletropaulo 7
8. Capex 2010 of R$ 682 million,
32% higher of 2009
Investments 2010 (R$ million)
682
28 Main investments:
516
29 307
Enlargement of 9 Sub-stations and increase of
299
260
the installed capacity of 267 MVA - R$ 174 MM
192 18
Meet the demand of 179 thousand new clients -
15 133
348 R$ 132 MM
226 96
149
81 Anhanguera-Casa Verde UTL* - R$ 26 MM
2009 2010 4Q09 4Q10 Maintenance of 3,265 km from our grid - R$ 186
MM
Expansion Maintenance Others
*Underground Transmission Line 8
9. 2011 investments 6% higher than 2010
Investments 2011 (R$ million)
720
682
Main investments:
17
28
336 Installation of 1,700 automatic reclosers (vs. 282 in
307
2010)
Installation of 107 thousand phase spacing (vs. 33
thousand in 2010)
348 367
750 km of reform in the secondary grid and 5,800 km of
maintenance in the primary grid (14% of the grid)
2010 2011(e) 1 new sub-station
Expansion Maintenance Others
9
10. IFRS adoption positively impacted the dividend
distribution basis in R$ 323 million
IFRS introduction impacts (R$ million)
121 (56)
236 20 (70) 36 93
(19) (5)
1,477 1,542 1,542
1,422 1,372 1,352 1,348 1,348 1,348 1,384
1,186 1,186
Net income Regulatory Taxes of Concession Reversion of Others² 2010 Opening Adjustments Realization Legal 2010
before IFRS Assets and Lands Contract Exchange IFRS balance related to of equity Reserve Distribuiton
adoption Liabilities Revaluated Variation¹ Net Income adjustments 2009 valuation 5% Basis
adjustment
10
1 – Reversal of monetary change revenue regarding sale of fixed assets 2- Borrowing costs, Pension Fund, Stock Options, Fixed Assets and Intangible
11. The growth of 10% in net revenues reflects the tariff
adjustment (+1.62%) effect, captive market growth
(+2.9%) and IFRS adoption as from 2010
Gross revenue (R$ million)
+10% 14,714
13,331
5,017
4,545
+7%
+10% 3,975
3,728
8,786 9,697
1,283 1,323
+8%
2,446 2,651
2009 2010 4Q09 4Q10
Net Revenue Deduction to Gross Revenue
11
12. PMS0 reduction due to lesser expenses
with contingencies
Operating Costs and Expenses¹ (R$ million)
+5%
6,745
6,431
-4% 1,255
1,306
+7%
5,125 5,490 7% 1,739
1,631
-27% 285
393
1,238 +17% 1,454
2009 2010 4Q09 4Q10
Energy Supply and Transmission Charges PMS² and Others Expenses
12
1 - Depreciation not include and other operating income and expenses 2 - Personnel, Material and Services
13. Extraordinary items growth was offset by provision
reversal and reduction of lawsuit expenses
PMS and other expenses (R$ million)
91 (240)
99
1,405
1,306 1,306 1,255 1,255
2009 Personnel Material and Others 2010
Third Party Expenses
Services
13
14. Personnel cost, materials and third-party services
without non-recurring items, would have grown,
respectively, 11% and 14%
Personnel (R$ million) Materials and Third-party Services (R$ million)
R$ 99 million variation - 33% R$ 91 million variation - 26%
7
9
33 34
34 35 40
40
18 15
9
7
15
15 18 35
34 18
33
RAC - Apportionment of the Headquarters’ Expenses Consulting
Health Pan - Law 9656 IT
SAT - Occupational Accident Insurance SAIDI/SAIFI Recovery Projects
Others Expenses Others Expenses
14
15. Market growth, non recurring events, lower
provisions and contingencies, positively
contributed Ebitda
Ebitda (R$ million)
428
218 (96) 156
(69)
2,413
1,898 1,985
1,775 1,775 1,829 1,829 1,829
2009 Market PMSO¹ Other 2010 IFRS One-off 2010
revenues without IFRS effects²
and and One-off
expenses Effects
1 – Personnel, Materials, Services and Others 2 – One-off effect items: R$ 265.4 million AES EP Telecom liquidation, R$ 75.5 million Sao Paulo Municipality Agreement
and R$ 86.9 million reversal of provisions referred to supplementary pension plan litigations 15
16. Positive effect of the settlement with Banco Santos in
2010, lower than impact of application to Refis in 2009
Financial Result (R$ million)
270 268
-62%
103
-88%
31
2009¹ 2010² 4Q09 4Q10
1 – Application to Refis R$ 275 million 2 – Settlement with Banco Santos R$ 106 million 16
17. 2010 pay-out reaches 114.4%, impacted by net
income growth of 17%
Net Income (R$ million) Final Cash (R$ million)
114.4%
101.6%
28.6%
20.4%
1,348
+17%
1,156 +33%
350
374
625 -50%
+29%
997 298 1,664
782 300 1,249
-30% 81
327
218
2009 2010 4Q09 4Q10 2009 2010
Recurring One-off effects
Pay-out¹ Dividend Yield
1 – Pay-out in 2009 calculated based on net income and distributable in 12.31.2009 17
18. Reduction of 11% in net debt and 2010 refinancing contributed
positively to reduce cost and the length of term of the debt
Net Debt Average Cost and Average Term (Principal)
7.2
7.1
1.5x 7.0
1.4x
0.9x
2.7 114.9%
110.0%
2.5
2.4 102.8%
2008 2009 2010 2008 2009 2010
Net Debt/Ebitda Adjusted¹ with Fcesp Average Term - Years
Net Debt (R$ billion) CDI²
18
1 - Last 12 months of EBITDA Adjusted 2 – Brazil’s Interbank Interest Rate percentage
19. Governance and Recognition
• Preferred Shares Class A conversion into Class B, ensuring 100% of tag along to all preferred
shares issued by the Company
• Maintenance of AES Eletropaulo shares in ISE – BM&FBovespa Sustainability
Index, for the 6th consecutive year
• AES Eletropaulo entry in ICO2 Index - BM&FBovespa Carbon Efficiency Index –
reinforcing the commitment with the adoption of transparency practices related to its greenhouse
gas emission
• Highlight among the most admired companies in Brazil, according to the ranking elaborated by
Carta Capital Magazine
• Prêmio Ibero-Americano de Qualidade (Iberian-American Award of Quality), which recognizes
management excellence of the participating companies and organizations
• Prêmio Consumidor Moderno de Excelência em Serviços ao Cliente (Clients Services Excellency
Award), in Electric Energy category, from Consumidor Moderno Magazine
19
