Eletropaulo reported strong financial results in the 2nd quarter of 2005. Net income increased significantly to R$136.8 million compared to a loss in the previous quarter, due to higher operating revenue and lower net financial expenses. Revenue grew due to a tariff adjustment and the completion of a tariff review from 2003. The company also issued bonds of R$474 million in the international market and had its credit rating upgraded.

1. 2nd quarter 2005 Results
August 11, 2005

2. • Market • Operating Performance
• Tariff Adjustment
• Financial Performance
• Financial and Operating
Performance
• Debt Profile
Conclusion

4. Highlights of the quarter
• Eletropaulo reported a net income of R$ 136.8 million in 2Q05,
reversing the loss of R$ 16.7 million posted in 1Q05
• Issue of bonds in the amount of R$ 474 million in the international
market
• FITCH Ratings raised the Company's local and foreign credit rating
from “B-” to “B”
• Subsequent Event :
• Tariff Adjustment of 2.12%, effective as of July 4, 2005
4

5. Revenue Consumption Perfil do Mercado Consumidor
2Q04 - GWh 2Q05 - GWh
7,2% 12,9%
9,9%
31,8% 7,4% 32,3%
Residencial
Industrial
Comercial
Outros
26,3%
26,6% TUSD
20,8%
24,8%
2Q04 – R$ 2Q05 – R$
1,4% 3,5%
8,0%
6,5%
Residencial
40,9% 41,1% Industrial
29,5% Comercial
Outros
30,0%
TUSD
20,2% 18,9%
5

6. Comparison of Consumption in GWh
4.7% 4.4% 3.3%
2.952
2.819 -13.2% 9.150
2.331 2.434 8.858
2.191
1.902 84.5% -3.0%
-22.4%
1.182
876 8.217
680 641
7.968
er
SD
l
l
al
tia
ia
Market Billed Market Billed
th
ci
r
TU
en
st
er
O
with TUSD
du
id
m
es
In
om
R
C
2Q04* 2Q05 2Q04* 2Q05
NOTE: Charts do not consider own consumption
*These amounts do not include the fraud recovery agreements of April 2004, which produced an additional
revenue of 213,611 MWh
6

7. Comparison of Consumption 2Q04 x 2Q05
in GWh
84,5%
4,7% 4,4% -22,4% 3,3%
-13,2%
Residential Industrial Commercial Other TUSD Total
NOTE: Charts do not consider own consumption
*These amounts do not include the fraud recovery agreements of April 2004, which produced an additional
revenue of 213,611 MWh
7

8. Retention of Potentially Free Consumers
Net Revenues with TUSD*
R$ million
78
54
48
38
30
19
1Q04 2Q04 3Q04 4Q04 1Q05 2Q05
Captives Consumers X Free
% total load of concession area in 2004 (35.341GWh)
13,3%
81,1%
5,6%
Captive Consumers Free Consumers Pontially Free Consumers
* TUSD – Tariff for the Use of the Distribution System 8

9. Tariff Evolution
20% 18.6%
17.6%
13.8% 14.3%
15%
11.1% 11.6%
10% 7,6% 12,1% 16,9%
11,8% 6.4%
7,5% 7,3% 7,1%
5% 1,6%
6,3% 4,5% 4,8% Adjustment
3,7% 2,5% 3,6%
1,7%
0% 2.12%
-4,3%
-5%
-10%
1999 2000 2001 2002 2003 2004 2005
Parcel B Parcel A PIS/COFINS IGPM
Factor X = 2.43%
9

10. Completion of Tariff Review 2003
• Authorized increase in adjustment rate from 10.95% to 11.65%
• R$ 42 million added to the remuneration granted for tariff year 2003-2004
Item – R$ thousand Previous Present Variation
Base of the net remuneration R$5.24 R$ 4.77
Remuneration rate 17.07% 17.07%
Remuneration R$ 895 R$ 814 (R$ 81)
Gross basis R 8,275 R$ 9,885
Depreciation rate 3.95% 4.31%
Depreciation R$ 327 R$ 426 R$ 99
Additional O&M costs - R$ 24 R$ 24
TOTAL R$ 42
R$ 42
• Restated amounted totals R$ 106.9 million, with an impact on 2Q05
R$ 106.9
results
• Recovery of resources will take place during tariff year 2005-2006
10

11. Results – 2Q04 x 2Q05
R$ million 2Q04 2Q05
Average tariff adjustment of 18.6% in 2004
Completion of Tariff Adjustment 2003, which
Net Revenue 1,714.6 2,275.5 32.7% produced a R$ 106,9 million revenue in 2Q05
Accounting reversion of R$ 72.0 million in 2Q05,
related to court disputes of PIS/PASEP payment
Increase in expenses related to items of Parcel A
(Tariff Adjustment of 2004)
Operating Expenses (1,463.9) (1,777.8) 21.4% Start of accounting deferred CVA of tariff year 2002-
2003, as of 3Q04
Beginning of accounting CVA energy in 1Q05
EBITDA * 317.6 571.6 79.9% Growth in operating revenue, offset by increased
operating expenses
Financial Income (155.3) (77.9) -49.9% 24.4% appreciation of the Brazilian Real against the
US dollar, producing a positive impact on the
(Expenses) ** currency variation account
Reversal of R$ 98.,0 million in 2Q05, relative to court
disputes involving the payment of PIS/ PASEP taxes
Extraordinary Items Net (85.3) (85.0) -0.4%
of Tax Effects
Net Income (Loss) 8.1 136.8 1,597.0% Operating income increase and net financial
expenses reduction
(*) Without adjustments
(**) Considering consolidated results
11

12. Results – 1Q05 x 2Q05
R$ million 1Q05 2Q05
Increase in energy consumption of classes:
residential (4.1%) commercial (0.6%)
Completion of Tariff Adjustment 2003, which
Net Revenue 1,979.6 2,275.5 14.9% produced a R$ 106,9 million revenue in 2Q05
Accounting reversion of R$ 72.0 million in 2Q05,
related to court disputes of PIS/PASEP payment
Increase in personnel expenses (11.7%) and
materials and third-party services (9.1%)
Operating Expenses (1,769.9) (1,777.8) 0.4% Acquisition of a larger volume of energy because of
seasonal changes in the following contracts (i)
bilateral, with AES Tietê, (ii) Itaipu and (iii) bilateral,
with biomass power plants
EBITDA * 282.,7 571.6 102.2% Increase in operating revenue
Financial Revenue (105.,0) (77.9) 24.4% appreciation of the Brazilian Real against the
-25.8%
US dollar, producing a positive impact on the
(Expenses)** currency variation account
Reversal of R$ 98.,0 million in 2Q05
Extraordinary Items Net (85.,8) (85.0) -0.9%
of Tax Effects
Operating revenue increase and net finance
Net Profit (Loss) (16.8) 136.8 N.M. expenses reduction
(*) Without adjustments
(**) Considering consolidated results
12

13. Adjusted EBITDA
R$ million
1st quarter 2005 2nd quarter 2005
R$ 282.7 EBITDA without R$ 571.6 EBITDA without
adjustments adjustments
R$ 82.0 RTE R$ 84.0 RTE
R$ 12.9 Debt Confession IIa R$ 15.7 Debt Confession IIa
R$ 0 PIS – accounting R$ 72.0 PIS – accounting
reversal reversal
R$ 377.6 ADJUSTED EBITDA R$ 599.3 ADJUSTED EBITDA
58.7% Increase
13

14. Capex in 2Q05
R$ million
Capex- 2Q05
Customer Service and
31
System Expansion
33
Maintenance 8
Loss Recovery 5
32
360-390 Personnel 18
297 15
Others 10
186 Total 72
144
Self Financed 8
Total Recorded 80
2003 2004 1H05 2005(e)
Capex Self Financed
14

15. Consolidated Indebtedness
R$ million
Short Term vs. Long Term Debt Evolution
5.278 5.284 5.256 5.278 5.284 5.256
100%
29%
2.402,7 2.242,5
3.090,8
77% 73%
50% 1.097,0
1.102,0
71% 762,5
1.778,8 1.916,9
27% 1.424,5
23%
0%
2003 2004 2Q05
2003 2004 2Q05
ST LT FCESP CVA/RTE Private Creditors
15

16. Hedging Strategy
million
R$3,473 R$4,490 R$5,902 R$5,278 R$5,284 R$5,256
100%
90% 12%
18% 14% 42% 35% 17%
80%
70%
3%
60% 41% 100% of foreign
61% 4%
currencies debt is
50%
hedged,
40% considering the
financial costs
30%
20%
41% 25% 54% 62% 83% 88%
10%
0%
2000 2001 2002 2003 2004 2Q05
Local currency Hedged Foreign currencies
16

17. Amortization Schedule
R$ million
Effective
payments
198
485
103
133
101 159
83
270
102 300 627
510 493 458 99
319 289
193 158
payment**
1H05
2H05
2006
2007
2008
2009
2010
Pre
R$ BNDES US$ *
*Exchange rate on 6/30/2005 US$/R$=2.3504
** Amortization of debts with creditors included in the Company’s Debt Profile Adjustment Program, paid on:
01/12/2005 with the third tranche of a loan in the amount of R$ 185 million to cover the losses from the energy rationing period.
06/29/2005 of R$ 175.9 million and 07/28/2005 of US$ 25.6 million, with 50% of the resources coming from the issue of bonds
17

18. Financial Strategy
• Bonds issue in 06-28-2005
• Principal: R$ 474,060,000.00
Ratings Increase
• Term: 5 years
• Interest rate: 19.125% p.a.
• Interest rate and amortization: B
• half-yearly interests 2005
• amortization at maturity
B–
2004
• Successful Bonds issue
• Estimates of growth in operating
revenues and cash flow
D
• Expected decrease in debt servicing 2003
• Better outlook for the electric
sector
18

19. 19

20. Highlights for the Quarter
Secondary Public Offer
In June 2005, a secondary public offer of shares was concluded by a group of minority
shareholders, namely Banco Banespa, Banco Santander e Banco Nossa Caixa. The offer
represented 45.1% of AES Tietê’s preferred shares and 12.8% of the common shares (28.4%
of total capital)
After the Public Offering
Shareholders
Common Preferred Total
AES Tietê Empreendimentos 61,7% 14,3% 38,9%
Energia Paulista 0,0% 18,0% 8,7%
AES Tietê Participações 9,6% 0,0% 5,0%
Banespa 0,0% 0,0% 0,0%
Banco Nossa Caixa 0,0% 0,0% 0,0%
Eletrobras 0,0% 16,4% 7,9%
Others 28,7% 51,3% 39,6%
TOTAL 100,0% 100,0% 100,0%
“Platinum List 2004“ – Forbes Magazine Award
AES Tietê was placed 8th in the overall classification of Forbes Brasil Magazine’s Platinum List
2004, which ranks the 200 better Brazilian public companies
“Maiores e Melhores” (The Biggest and the Best) – Exame Magazine Award
AES Tietê was considered by Exame Magazine’s “Maiores e Melhores” annual listing as the
company with the best performance in the public service area during 2004
20

21. Tariff Adjustment
The Initial Contracts are readjusted on a yearly basis according to the
following pre-established formula :
Rate for Tariff Adjustment = VPA + VPB x IGP-M
Revenue
Tariff adjustments in 2005:
• February: Bragantina = 12.4%, the new tariff is R$ 65.3 / MWh
Nacional = 12.4%, the new tariff is R$ 69.4 / MWh
April: CPFL = 10.6%, the new tariff is R$ 73.8 / MWh
July: Eletropaulo = 9.1%, the new tariff is R$ 76.0 / MWh
The Bilateral Contract with Eletropaulo is adjusted in July of each year,
according to the IGP-M (general price index - market)
In 2005, the tariff was adjusted in 7.1%, to R$ 132.7 / MWh
21

22. Energy Balance – 1H05
Caconde
213,607 CPFL
Euclides Energy Generation x Billed Energy 279,373
301,477 in MWh Bandeirante
Limoeiro 149,.223
88,836
Eletropaulo - CI
Água Vermelha 451,752
3,958,255
Barra Bonita Elektro
TOTAL BILLED 232,356
286,067
Bariri 6,783,237 5,391,027 Bragantina
314,.265 73,453
Ibitinga
352,748
Promissão
= Nacional
46,447
527,559 Piratininga
Nova Avanhandava
MRE* 151,947
719,573 Eletropaulo - Bilateral
Mogi Guaçu AES Tietê generated 27.9% over 4,006,477
20,850 its assured energy
*After deducing own consumption and transmission losses, the difference is addressed to the Energy Reallocation Market – MRE
22

23. Stored Energy
Southeast Region Reservoirs
80
% of Max Stored Energy
60
40
20
0
Oct
Nov
Apr
Jun
Aug
Jul
May
Dec
Mar
Jan
Feb
Sep
2005
Risk Aversion Curve* - 2005
Risk Aversion Curve* - 2006
* Risk aversion curve in the Southeast region - ONS
Source: “Operador Nacional do Sistema” – ONS (National System Operator)
23

24. Income Statement
Tariff adjustments and de-contracting
in R$ million 1H04 1H05 of 25% of volume from initial contracts,
which were transferred to the bilateral
9.0% contract
Net Revenues 493.3 537.5
Increase in the Financial Compensation
Operating Costs (138.4) (142.1) 2.6% for Use of Water Resources and from
the operating provisions
Increase in EBITDA Margin from 78.3%
Ebitda 386.7 427.4 10.5% in 1H04 to 79.5% in 1H05
Lower variation of the IGP-M index,
Financial Income (142.4) (75.0) -47.3% from 6.8% in 1H04 to 1.7% in 1H05
(Expenses) Increase in financial income, due to a
greater cash balance and increased
interest rates
Income before
212.5 318.8
taxes and
shareholders
Net income increase due to better
operating and financial performance
Net Income 140.3 210.3 50.0%
24

25. Operating Costs and Expenses
in R$ million 1H04 1H05
Personnel 13.5 14.8
Third Parties Services 10.2 10.4
Increase in the Updated Reference Tariff – TAR (R$
52,67MW/h )in 1Q05 (TAR x 6.75% x Generated Energy) and
Financial Compensation 18.0 24.0 in the volume of generated energy
Connection and Distribution 26.2 23.4 Decrease in connection charges established by Aneel
Network Charges Transmission – increase due to greater volume of energy
sold under the bilateral contract
Purchased Power 21.1 12.5 End of purchases from Itaipu
R$ 7.3 million relative to "Financial Surplus" MAE expense,
Depreciation and which was accounted in 1Q04
Amortization 31.,8 32.0
Provision for the financial investments that the Company
Operating Provisions held in Banco Santos
0 16.4
Others End of the obligation for payment of the Public Asset Tax
17.6 8.5 (UBP) in 2004
Insurances
Waterways
Total 138.5 142.1 R&D
25

26. Financial Investments
• Financial investments are distributed as shown in the graphic below:
Títulos Estrangeiros -
US$ - Aa1 Private Bonds - A3
7% 1%
Foreign Bonds - US$
- Aa3
8%
BR Federal Bonds -
Ba3
84%
Rating: Moody´s Rating - Local Curreny (long term)
26

27. Capital Expenditures
• Capex during the 1H05 amounted to R$ 7.2 million and were destined mainly for
equipments modernization and waterway improvement
• Main Capex destination:
Bariri - re-equipping and modernization of the Generating Unit 2
Água Vermelha - equipment modernization
Reforestation of boarders – Ibitinga, Bariri, Barra Bonita and Promissão
10%
40%
31%
19%
Equipment
Waterway
Environmental
Others
27

28. Capital Markets
• In 1H05, AES Tietê’s common shares (GETI3) appreciated by 10.9% and the preferred shares
(GETI4) appreciated by 21.7%, while the Bovespa Index posted a decline of 4.4%.
• During the 1S05, GETI3 presented a daily average volume of R$ 1.5 million, being traded in 98% of
Bovespa’s trading sessions. GETI4 posted a daily average volume of R$ 1.3 million, traded in 72%
of the trading sessions. When compared to the same period of previous year, the average daily
value increased by 33% (GETI3) and 145% (GETI4).
• In July, after the offer expired, Tietê’s shares were traded in all Bovespa trading sessions and the
daily average values were R$ 3.7 million (GETI3) and R$ 1.8 million (GETI4).
AES TIETÊ vs IBOVESPA End of
Secondary Offer
(Base 100 = 30/06/04)
250
212
200
189
150
118
100
50
Jun Jul Aug Aep Oct Nov Dec Jan Feb Mar Apr May Jun
GETI3 GETI4 Ibovespa
28

29. Dividends
• On August 9 the Board of Directors approved dividend in the total amount of R$
199.8 million, representing 95% of the 1st half 2005* net income
Dividend Yield** - % Dividend Payout - %
10,9%
2005 2005 1 95,0%
1 10,2%
13,4%
2004 2004 95,0%
12,3%
11,4%
2003 2003 95,0%
6,6%
23,6%
2002
17,4% 2002 2 N.A.
2
Common Preferred
* Date and basis date of payment to shareholders to be defined by the Management
** Based in average market price in 1H05
1- 1H05 proposed dividends annualized
2- Values paid in 2002 related to capital reduction
29

30. Conclusion
• Eletropaulo closed the 2nd quarter with increases of • AES Tietê ended up the first half of 2005 with highly
33% in net revenue and 80% in EBITDA, resulting positive results, highlighting:
mainly from the completion of the Tariff Review
Process of 2003, which produced an additional
revenue of R$ 106.9 million, coupled with the • Ebitda of R$ 427.4 million, 10.5% above the 1H04, and
reversal of the amount of R$ 72 million relative to Ebitda margin of 79.5%.
court disputes related to the payment of
PIS/COFINS taxes, based on a legal opinion that
considers the statute of decadence • Net profit amounted to R$ 210.3 million, with a 50.0%
increase due to the better operating and financial
• Other positive issues in the 2nd quarter 2005: results.
• FITCH Ratings increased the international evaluation of
the Company’s local and foreign credit from “B-” to “B”
• Issuing of R$ 474 million bonds in the international • Net margin increased from 28.4% in 1H04 to 39.1% in
market 1H05.
• Positive perspectives for the 3rd quarter 2005: • Dividends payment of R$ 199.8 million, related to 1H05
earnings results.
• Completion of the Tariff Adjustment Process
• Exclusion of PIS/COFINS from Parcel B

31. 2nd quarter 2005 Results
August 11, 2005
All statements contained in this presentation related to the outlook of
the Companies’ business, projections of operational and financial
results, and potential growth represent mere provisions and were based
on managements expectations in relation to the future of the Companies.
These expectations are highly dependent of market changes, Brazil’s
economic outcome, the energy sector and the international markets
behavior, being thus subject to change.