2. 2Q12 Highligths
Operational 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
Financial 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
Regulatory 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
2
3. 3rd Cycle of the Periodic Tariff Reset
Gross Regulatory Asset Base: R$ 10,748.8 million
Tariff Review
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%
Average effect to be perceived by the consumer : +5.51%
Tariff Adjustment
Economical Effect: +4.45%
Tariff Review +
Adjustment Average effect to be perceived by the consumer : -2.26%
Administrative In 17th July, Company filed a request for reconsideration of the Homologation Resolution 1,327/2012
Appeal about the Regulatory Asset Base and the non-technical losses trajectory
3
4. Performance of residential and commercial clients
offset the drop in industrial class
Consumption evolution (GWh)¹
+7.1% -3.2% +3.0% +7.6% +4.1% -4.5% +2.5%
11,246 11,529
9,515
9,138
4,339
4,053
2,879 2,965
2,109 2,014
1,513 1,465
694 747
Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market
and Others
2Q11 2Q12
1 – Own consumption not considered 4
5. SAIDI reduction in the last 12 months as a
result of the Action Plan
SAIDI¹ (last 12 months) SAIDI¹ (YTD)
- 12.2%
10.09 -21.2%
9.32
8.68
6.53
11.86 10.60 10.36 10.40 8.97 5.14
9.13
2009 2010 2011 2Q11 2Q12 Jul-12
Jan-Jul/11 Jan-Jul/12
SAIDI Aneel Reference SAIDI (hours) SAIDI (hours)
1 - System Average Interruption Duration Index 5
Source: ANEEL and AES Eletropaulo
6. SAIFI remains below the regulatory limit and
keeps presenting a decrease
SAIFI ¹ (last 12 months) SAIFI¹ (YTD)
7.87
7.39 6.93
-18.7%
-10.2%
6.17 5.46 5.45 5.48 3.37
2.74
4.92
4.81
2009 2010 2011 2Q11 2Q12 Jul-12 Jan-Jul/11 Jan-Jul/12
SAIFI Aneel Reference SAIFI (times) SAIFI (times)
1- System Average Interruption Frequency Index
6
Source: ANEEL and AES Eletropaulo
7. Losses level below regulatory reference
for the 3rd Cycle
Losses (last 12 months) Regulatory Reference² - Total Losses (last 12 months)
11.8 10.7 10.3
10.9 10.5 10.6 10.5 9.8 9.4
5.3 4.4 4.0 4.1 4.2
6.5 6.5 6.5 6.5 6.3
2009 2010 2011 2Q11 2Q12 2011/2012 2012/2013 2013/2014 2014/2015
Perdas Técnicas¹ Perdas não Técnicas
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 7
energy injected into the system
8. Investments of R$ 170 million in 2Q12
Investments (R$ million) 2Q12 Investments (R$ million)
45
841
739 46
800 7
682 22
700
28 42 8
600 8
500 16
400 794
717 44
654 +7.1%
300
159 170
200
5 8
Maintenance¹
100 154 162
Client Service
0
2010 2011 2012(e) 1Q11 1Q12 System Expansion
Losses Recovery
Capex Paid by Customers
IT
Paid by the Clients
Others 8
1 – Maintenance Capex is the investment s made for the grid modernization and improvement in quality of service
9. Revenues increased by 3% due to residential and
commercial classes expansion
Gross Revenues (R$ million)
+2.8%
7,466 7,672
2,651 2,748
+2.8%
324 352 3,732 3,838
1,342 1,386
4,490 4,572 160 166
2,231 2,286
1H11 1H12 2Q11 2Q12
Net revenue ex-construction revenue
Construction revenues
Deduction to Gross Revenue
9
10. Cost of energy purchased impacted by growth
of the market and average price
Operating Costs and Expenses ¹ (R$ million)
+16.3% 3,962
3,407
775
+9.6%
707
+19.1%
2,025
+18.0%
1,700
+4.1% 374
3,187 359
2,700
+23.1%
1,651
1,341
1H11 1H12 1Q11 1Q12
Energy Supply and Transmission Charges PMS² and Others Expenses
10
1 - Depreciation and other operating income and expenses are not included 2 - Personnel, Material and Services
11. Growth of 4% in operational expenses,
below the inflation increase of 5%
PMS and other expenses (R$ million)
21 5 (22)
12 4 (21)
16
391 412 395
375 387 374 374
359 359
2Q11 Personnel and Fcesp Material and Action Plan Client Default Agreements Others¹ 2Q12
Payroll Third part 2011-2012/ (ADA) and reversals
DEC & FEC in legal labor
project and civil
disputes
11
1 – Others: Other contingencies provision, losses and agreements (excluding civil and labor) , reduction in call center expenses and other operational expenses
12. Reduction in Ebitda due to higher cost
of energy purchased
Ebitda (R$ million)
61 (310)
(15) (17)
525 525
275 261 243 243
2Q11 Net Revenue Parcel A costs PMSO Others revenues 2Q12
and expenses
12
14. Net income variation impacted by an
increase in energy purchased
Net Income (R$ million)
537
162
-69%
167 255
70
376 -78%
247
57
185
69
(12)
(80)
¹ ¹
1H11 1H12 2Q11 2Q12
Net Income - with regulatory assets and liabilities
Regulatory assets and liabilities
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. 14
15. Lower cash generation due to
higher cost of energy purchased and charges
Operational Cash Generation (R$ million) Final Cash Balance (R$ million)
-60% +4%
654 1,043 1,083
259
2Q11 2Q12 2Q11 2Q12
13
16. Debt kept at comfortable level
Net Debt Average Cost and Average Term (Principal)
1.7x
1.4x 6.8
6.1
1.3x 1.3x
116.2%
2.9 3.1 108.9%
2Q11 2Q12 2Q11 2Q12
13.6% Effective rate 11.3%
Net Debt (R$ billion)
Gross Debt/Ebitda Adjusted with Fcesp¹ Average Time - years
Net Debt/Ebitda Adjusted with Fcesp ¹
% of CDI
14
1 - Adjusted Ebitda for the expenses related to liabilities with pension plan in the last 12 months
17. Efficiency program and costs management
Efficiency Program 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
Disposal of Property 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
17
18. 2Q12 Results
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.