2. 2Q11 Highlights
Energy generation 41% higher than physical guarantee
Operational
Operational R$ 34 million invested, mainly, in the modernization of the Nova Avanhandava (347 MW), Ibitinga
(132 MW) and Caconde (80 MW) power plants
Net revenue of R$ 409 million, 2% higher than 2Q10
2% increase in costs and operational expenses, below inflation1
Finance
Finance
Ebitda reached R$ 304 million, with margin of 74%
Net income of R$ 161 million, increased 6% comparing to 2Q10
AES Eletropaulo bilateral contract adjusted from R$ 159,85/MWh to R$ 173,68/MWh
Dividends distribution on 22th September 2011, corresponding to 112% of net income
Subsequent
Subsequent Went into commercial operation on July 20th, 2011, the PCH São Joaquim, with 3 MW of installed
Events
Events capacity, located in São João da Boa Vista (SP); the operation of PCH São José, with 4 MW of
installed capacity, will take place in 2H11
Winner of 4th Abrasca Value Creation Award - Sector Highlight 2011 – Energy, as the best model
for creating value between 2008 and 2010
1 – IGP-M, 8,6% for the 12 months ended in 06/30/2011 2
3. High level of AES Tietê’s reservoirs
reflects the good rainfall level during 2Q11
Reservoirs level of AES Tietê’s power plants1
97%
95%
98%
92%
94%
89%
87%
85%
82%
84%
85%
85%
Caconde Água Barra Bonita Promissão Caconde HPP
Vermelha
1Q09 1Q10 1Q11
1 – As of 06/30/2011 3
4. High operational availability with energy generation 41%
higher than physical guarantee in 2Q11
Energy Generation (MW Avg.1)
130% 141%
125%
133%
118%
1,665 1,640
1,599 1,604
1,512
2008 2009 2010 2Q10 2Q11
Generation - Mwavg Generation/Physical guarantee
1 – Generated energy divided by the amount of period hours
4
5. Energy generated by AES Tietê’s power plants offset the 44%
reduction in generation of Nova Avanhandava
Energy Generation (GWh)
2Q10 2Q11
4%
Agua Vermelha 5%
3% 4%4%
5%
Promissão 5% 5%
Ibitinga 6%
10%
Nova Avanhandava
6%
Bariri 5%
60% 62%
Barra Bonita
A 9%
*
Euclides da Cunha 9%
Other Power Plants*
3,582 GWh 3,503 GWh
* Caconde, Limoeiro, Mogi, SHPPs 5
6. Investments in the modernization of Nova Avanhandava,
Ibitinga and Caconde power plants
Investments (R$ million) 2Q11 Investments
78%
169
13
82
12 156 18%
57 4%
13 34
70 16 6
43 1
15 28
2009 2010 2011 (e) 2Q10 2Q11 Equipment and Modernization
New SHPPs*
Investments New SHPPs*
* Small Hydro Power Plants IT projects
6
7. Brazil needs to add 25 GW2 up to 2020
Installed Capacity – GW 1 Growth by source – new auctions
CAGR Total = 25 GW 2
+ 5%
166 171
156 163
149
136 142 14 19
133 8 11 2
124 3 5 Thermal
116 2 42 42 42 6 GW2
Hydro
23 24 29 34 38 8 GW
6 14
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 – 2011 - in Public Hearing) 2 – Amount related to thermal power plant is an estimate of the Company
2
110
42
38
34
29
24
19
23
11
14
8
5
3
6 7
8. Opportunity to develop a gas-fired power plant project
Thermal power plant project - Thermo SP
• Project features • Next events
- Combined cycle using natural gas
- 18th august 2011: Public hearing in the
- Estimated investment of R$ 1.1 billion municipality of Lorena
- Natural gas consumption: 2.5 million m3/day - 2nd half of 2011: Power Auction realization
A -5 (expected)
• Opportunities Gas production - 10³ boe/day1
- Increased natural gas production due to the
activities of the pre-salt
- New Run-of-the-river (ROR) power plants create
opportunities for thermal power plants 1,109
623
321 316 384
274 277 273
2005 2006 2007 2008 2009 2010 2014 2020
1 – Source: Petrobras (Estrategic Petrobras 2020 Plan) 8
9. Higher 2Q11 volume of billed energy through CCEE and
other bilateral contracts
Billed Energy (GWh)
- 5%
7,881
7,507
132
201
949
847
1,146 + 7%
1,425
3,862
3,605
93
80
306 423
5,653 580 838
5,034
2,639 2,508
1H10 1H11 2Q10 2Q11
AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts
9
10. Growth in net revenue, reflecting sales volume of CCEE and
other bilateral contracts
Net revenue (R$ million)
- 4%
863
826
17
26
26
32 + 2%
403 409
10 12
820 768 10 15
383 382
1Q10 1Q11 2Q10 2Q11
AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts
10
11. Increased costs with PMSO2 below inflation
Costs and operational expenses1 (R$ million)
9 8
1 1
102 105
2Q10 Personnel, Financ. Comp. Energy Operational 2Q11
Material and for Use of Water Purchased for Provisions
Outsourced Res. and Resale and Other
Services Transmission Operating Exp
and Connection
1 – Do not include depreciation and amortization 2 – PMS = Personnel, Material and Outsourced Services
11
13. Financial result benefited by exchange of debt
in May, 2010
Financial Results (R$ million)
1H10 1H11 2Q10 2Q11
-
(13)
(28)* (24) (28)
- 53%
-15%
* Excluding non-recurring effect of R$ 42.6 million related to FURNAS, the financial results would be R$ 71.0 million
13
14. Net income favored by revenue growth and good
performance of the financial result
Net Income (R$ million)
111% 111%
6% 4%
Distribution of R$ 179.5 million in dividends
114% 112% related to 2Q11:
- R$0.45 per common share
2% 2%
- R$0.49 per preferred share
371 354 - Ex-dividends: August 12th, 2011
- Date of payment: September 22nd, 2011
151 161
1 1
1H10 1H11 2Q10 2Q11
Pay-out
Yield Preferred Shares Net income
371
354
151
161
1 – Pay-out referred to dividends paid in the 2Q10 in relation to the net income adjusted by the IFRS 14
15. Final cash balance reflects the bilateral contract’s seasonality
and increase in investment program
Operating Cash Flow (R$ million) Final Cash Balance (R$ million)
-14% - 37%
344 455
297
286
2Q10 2Q11 2Q10 2Q11
15
16. Stable debt, debentures maturing at the end of 2015 and
nominal cost of CDI + 1.20% per year
Net Debt (R$ billion) Average Cost and Average Term (Principal)
0,8
3.8
0,7
0,6 2.8
0.5x
0,5
0,4
0.4x
0,3
0,2
0,1
‐
111.9% 112.8%
0.6
0.5
2Q10 2Q11 2Q10 2Q11
13.9% Effective rate 14.3%
Net debt Net debt / EBITDA
1
Average Term - Years CDI
1 – Percentage of CDI 16
17. 2Q11 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.
