The document summarizes the 2006 results of an energy company. Some key highlights include: 1) Adjusted EBITDA was R$2.49 billion in 2006, 16.7% higher than 2005. Net profit was R$373.4 million compared to a loss in 2005. 2) Debt was reduced by 19.8% and credit ratings were increased. 3) The captive electricity market grew 5.1% excluding free consumers. Total market increased 4.6% to 38,183 GWh. 4) Technical and commercial losses decreased while collection rates remained steady at over 99%. Fraud detection and clandestine connections were reduced.

1. 2006 Results
March 08, 2007

2. Highlights Debt Profile
Brasiliana Reorganization
g Cash Flow
Market Capital Markets
Operating Performance Conclusion
Financial Performance

3. Highlights
• Board of Directors has 20% of independent members (new rules of BOVESPA’s Level 2)
1Q06
• Issuance of R$ 300.0 million in CCB – early liquidation of the remaining part of the
renegotiated debt (05/12/2006)
2Q06
• Tariff Adjustment – 11.45% (07/04/2006)
3Q06 • Increase in the maturities of FCESP Debt to 2022 - cash savings of approx. R$ 633 million
until th end of 2008
til the d f
• Companhia Brasiliana de Energia´s reorganization
• Secondary Offering of Eletropaulo shares - (09/25/2006)
• Total offering size: R$ 1 3 billion
1.3
• 15.8 billion class B preferred shares (38% of Eletropaulo´s total capital), with 100% of tag
along
• Free-float increased from 18.3% to 56.2%
• Adjusted EBITDA of R$2,490.8 million in 2006, 16.7% higher than 2005
4Q06 • Net Profit of R$ 373.4 million in 2006, compared to a loss of R$155.5 million in 2005
• Reduction of 19.8% in Net Debt
• Ratings increased (BB- in international scale and A in national scale)
• Proposed Dividends of R$ 130.4 million (R$ 2.94/’000 common shares and R$ 3.23/’000
preferred shares) 3

4. Brasiliana Reorganization
• Reduction of Brasiliana’s and holdco’s indebtedness from R$ 2,044.0 million (principal as
of 09.30.2006) to R$ 800.0 million
AES Holdings
BNDES
Brasil Ltda
C 49.99%
49 99% C 50.01%
50 01%
P 100.00% P 0.00%
T 53.84% T 46.15%
Cia. Brasiliana
R$ 800 million
De Energia
C 71.27%
C 100.00% C 100.00% C 98.26%
P 32.23%
T 100.00% T 100.00% T 98.26%
T 52.51%
AES Uruguaiana P 7.38%
AES ELPA T 4.44%
Inc (Cayman)
( y )
C 100.00% C 77.81%
T 100.00% P 0.00%
T 30.97% C = Common Shares
P = Preferred Shares
AES Uruguaiana T = Total
AES Infoenergy Eletropaulo AES Tietê S.A.
Empreend. S.A.
4

5. Consumption Comparison in GWh
Captive Market Evolution (GWh)
7,792
,
7,360 7,528 7,436
7,221 7,370 • Excluding all free consumers from previous
7,166
6,904
periods, the captive market increased 5.1% in
2006.
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
4.6%
4 6%
6.9% 0.1%
38,183
36,499
12,687 3.2%
11,863
,
31,634 31,656
31 634 31 656
-12.9%
9,593 9,898
34.2%
7,580
6,606 6,527
-5.1%
5.1% 4,865
4 865
2,598 2,465
Residential Industrial Commercial Public Sector Free Billed Market Total Market
and Others Consumers
NOTE: Charts do not consider own consumption
2005 2006 5

6. Free Consumers
% Total Market (2006)
Captive Consumers
80.9%
18.5% Free Consumers
Potentially Free Consumers
0.6%
Net Revenue with TUSD X Free Consumers’ Consumption
467.1
467 1
367.3
134.4 6,527
4,865
2,675
2004 2005 2006
Free Consumers (GWh) TUSD (R$ million)
6

7. Operating Highlights
Loss Evolution* (%) Collection Rate - % over Gross Revenue
13.5 -7.1% +0.1%
12.9 99.0 99.1
12.0 97.5
7.0 6.4 5.5
6.5 6.5 6.5
2004 2005 2006 2004 2005 2006
Technical Losses Commercial Losses
Fraud Combat and Clandestine Connections (2006): Collection Rate (2006)
• Public Sector: 104.2%
• 443 thousand inspections and 49 thousand frauds detected
• Private Sector: 98.8%
• 80 thousand clandestine connections regularized
Cuts and Reconnections – monthly average (2005 x 2006)
• Cuts – increase from 92 thousand to 116 thousand
* Due to the improvement in the calculation criterion of Technical Losses,
the Company altered its value retroactively from 5.6% to 6.5%, however
• Reconnections – increase from 55 thousand to 74
without changing total losses thousand
7

8. Investments 2006
R$ million
illi
404
378 Investments 2006
49 (R$ 377.7 million)
330 58
33
217 Customer Service and System
Expansion
32 15%
355 366 Maintenance
297 319 8% 37%
Loss Recovery
186
Information Technology
14%
Others
2003 2004 2005 2006 2007 (e) 11% 14%
Self Financed
Capex Self Financed
8

9. Results
R$ million
illi
Gross Revenue Operating Expenses
-7.6%
+1.8% 7,471.3
6,903.9
11,153.7 11,350.8
4,712.5
2,856.9
2 856 9 2,996.6
2 996 6 4,392.4
4 392 4
-1.0%
+4,4%
+4.4%
724.9
8,296.8 8,354.2 1,848.8 1,830.3 805.7
2,839.7 2,964.8
781.1 1,105.1
1 105 1 1,137.9
1 137 9
775.2
188.4 2,033.9
2,064.5 2,183.7 230.8 1,705.8
555.3 461.7
4Q05 4Q06 2005 2006 4Q05 4Q06 2005 2006
Net Revenue Deductions from Operating Revenue Operating Expenses
p g p Sector Charges
g Electricity +Transport
y p
• Increases in relation to 4Q05 and 2005 • Reduction of 7.6% in 2006:
are explained by: • Reduction of 5.8% in energy purchase due to
the change in mix (end of Initial Contracts)
• The application of the 11.45% average tariff
• Reduction of 45.0% in Other Expenses due to
adjustment since July 4th, 2006 extraordinary expenses posted in 2005 and
2006:
• Total market evolution:
• R$ 451 3 million – 2005
451.3
• 5.6% higher than 4Q05 • R$ 158.6 million – 2006
• 4.6% higher than 2005
9

10. EBITDA
R$ million
illi
4Q05 x 4Q06 2005 x 2006
EBITDA 290.8 433.1 1,121.9 1,763.4
RTE 83.6 83.4 334.9 326.8
Pension Fund 60.3 60.4 241.8 242.0
SP Municipal Government 0 0 330.5 0
PIS/Pasep taxes´ reversion 0 0 (72.0) 0
Provision - RTE 176.9 1.5 176.9 37.7
Provision - Contingencies 0 0 0 120.9
ADJUSTED EBITDA 611.6 578.4 2,134.0 2,490.8
ADJUSTED EBITDA
MARGIN 29.6% 26.5% 25.7% 29.8%
Reduction of 5.4% Increase of 16.7%
10

11. Consolidated Financial Result
R$ million
illi
Financial Result The financial result of 2006 is explained by:
4Q05 4Q06 2005 2006
• The reduction of 39.0% in financial revenues
• Additional revenues of R$ 193.6 million in 2005 due to
(42.8) (41.5)
the change in RTE balance compensation rules
-2.9%
• The reduction of 25 2% in financial expenses
25.2%
+3.9% partially compensated the reduction in revenues
in the financial result
(
(329.6)
) (342.3) • reduction of debt net total cost
Debt – Total Cost (Net) Average Cost and Average Life
5.44
5 44 5.48
5 48
(160.4) 104.28%
(153.7) 101.18% 97.27%
88.22% 91.61%
(130.2) 3.90
3.69 3.81
(120.4)
(120 4)
(104.2)
4Q05 1Q06 2Q06 3Q06 4Q06 4Q05 1Q06 2Q06 3Q06 4Q06
Avg Cost - % CDI* p.a. Avg Life - years
11
CDI index at the end of the period

12. Net Profit
R$ million
illi
• The Company proposes distribution of dividends at the maximum amount allowed by the
Brazilian Law, after absorbing the accumulated losses up to 2005:
• R$ 2 94/’000 common shares
2.94/’000
• R$ 3.23/’000 preferred shares
373.4
Proposed Dividends 2006 (R$ million)
+728.3% Accumulated Losses 2005 (262.1)
99.0 Reversal of expired dividends 3.8
Net Profit 2006 373.4
12.0
Net Balance 115.0
Legal Reserve (5%) (5.8)
4Q05
Q 4Q06
Q 2005 2006 Realization of Revaluation Reserve 21.1
21 1
Dividends 130.4
(155.5)
12

13. Consolidated Debt
R$ million
illi
Short Term x Long Term Gross Debt – 2006
-19.8%
-9.3%
9 3%
5,075 IGP-DI
4,800 4,830 4,830 50.0%
4,562
21% 4,031 20% 27% 20%
3,658 3,658
R$ mill ion
Fixed Rate
11.6%
11 6%
Libor
79% 80% 73% 80% CDI/Selic 1.6%
36.8%
3Q06 4Q06 2005 2006
• Pension Fund - R$ 2,415 million
• Private Creditors - R$ 2,040 million
LT ST Net Debt • BNDES - R$ 375 million
Debt Highlights – 2006 Ratings Evolution – Fitch Ratings
National Scale A
• Gross Debt: reduction of 4.8% ( $ 245.2 million)
% (R$ )
BBB+
BBB Oct ‘06
• Net Debt: reduction of 19.8% (R$ 904.5 million) BB -
BBB Jul ‘06
B+
• Foreign Currency: decreased from 6.0% to 1.6% of total BB Dec ‘05
debt
Oct ‘04
B+
B- International Scale
Last Update: 10/05/2006 13

14. Amortization Schedule
Principal
P i i l 12/31/2006 - R$ million
illi
1,273
917
881
47
153
628
469 25 1,273
159
440 441
25 25
346 729
231 147 153 291 291
112 263
378 153 153
153
234 268 263
212
138 138 111
23
Pre- Payments 2007 2008 2009 2010 2011 2012 2013 2014-22
payments 2006
2006
R$ (w/out FCESP) FCESP BNDES US$*
* Exchange Rate in 12/31/2006 - US$ 1.00 = R$ 2.1380 14

15. Managerial Cash Flow
R$ million
illi
R$ million 1Q06 2Q06 3Q06 4Q06 2006
Initial Cash 492 358 619 767 492
Operating Cash Generation 687 653 725 741 2,806
Investments (
(101)
) ( )
(88) ( )
(75) ( )
(85) (
(349)
)
Net Financial Expenses (194) (85) (176) (91) (545)
Net Amortization (245) (45) (158) (111) (559)
Pension Fund Expenses
p (
(134)
) (
(108)
) ( )
(85) ( )
(55) (
(382)
)
Income Tax (147) (67) (83) - (297)
Free Cash Flow (133) 261 148 399 675
Final Cash 358 619 767 1,166
1 166 1,166
1 166
• Operating Cash Generation – reduction of operating costs and expenses along the year
• Financial Expense – semi-annual payments of interests in 1st and 3rd quarters (bonds and 8th issuance of debentures)
• Net Amortization – Issuance of R$ 300 million in CCB on May and early liquidation of the renegotiated debt in 2004
• Pension Fund Expenses – renegotiation of debt contracts in 3Q06
• Income Tax – Write-off of R$ 369.4 million (provision MGSP) made possible to take the tax benefit
15

16. Capital Markets
Price Volume
ELPL6 (Preferred Class B)
• Rose 28.2% since 09/21/2006 (pricing)
ELPL5 (Preferred Class A) • The daily average traded volume of preferred shares
• Rose 2.5% in 2006 in 2006 is 4.3 times higher than 2005’s
IBOVESPA
• Rose 32.7% in 2006
ELPL5 x ELPL6 Daily Average Volume - preferred shares
(R$/'000 shares) (R$ thousand)
122.0
118.0
114.0
114 0 18,024.9
18 024 9
110.0
106.0
102.0
98.0
94.0 +331.5%
90.0
86.0
86 0
82.0
78.0
74.0 4,177.5
70.0
5
06
06
06
28 6
6
6
6
6
6
6
6
6
00
00
00
00
00
00
00
00
00
00
20
20
20
/2
/2
/2
/2
/2
/2
/2
/2
/2
/2
1/
0/
1/
1
31
31
30
31
30
31
31
30
/3
/3
/3
/3
1/
2/
3/
4/
5/
6/
7/
8/
9/
12
10
11
12
2005 2006
ELPL5 ELPL6
16

17. Conclusion
• Reversal of accumulated losses of R$ 262.1 million in 2005 to a net profit of R$ 373.4
million i 2006
illi in
• Proposed dividends of R$ 130.4 million (R$ 2.94/’000 – common shares and R$
3.23/ 000
3.23/’000 – preferred shares)
• 16.7% increase of Adjusted EBITDA, going from R$ 2,134.0 million in 2005 to R$
2,490.8 million in 2006
• 7.6% reduction in Operating Expenses – lower volume of extraordinary expenses in 2006
• Reduction of 19.8% in consolidated net debt and of R$ 228.3 million in foreign currency
debt
• Increase of total debt’s average life from 3.7 years to 5.5 years
• Ratings increased by Fitch Ratings and S&P
• Free float increased from 18.3% to 56.2% of the total capital
17

18. Earnings Results 2006
March 08, 2007
18

19. Highlights
Hi hli ht Capex
C
Operating Performance Expansion Requirement
Bilateral Contract Capital Markets
Financial Performance Conclusion
19

20. Highlights - 2006
Jan,06: 100% of assured energy is sold through the bilateral
contract with Eletropaulo
1Q06
Best Public Utility in 2005 according to Exame Magazine’s
Melhores e Maiores Ranking
2Q06
Jul,06: Readjustment of price of bilateral contract with
Eletropaulo in 0 9%
0.9%
3Q06 Dividend payment of R$ 305.5 millions relative to the earnings
obtained in 1H06
Dividend and interest on equity of R$ 143 million payment relative
$
to the earnings obtained in 3Q06
4Q06 EBITDA reached R$ 1,096.9 million, 16.8% higher than 2005
Net Income of R$ 614.1, an increase of 10.4% in comparison with
2005
Proposal of R$ 165.2 million of dividends to be paid, relative to
4Q06 results 20

21. Energy Balance – 2006
Energy Generated x Billed Energy in GWh
Caconde 2.8%
344.6
Euclides 3.7%
463.8
Limoeiro 1.1%
132.0
Água Vermelha 60.1%
89.0% Eletropaulo - Bilateral
7,498.1
,
11,107.7
11 107 7
Barra Bonita 4.0% TOTAL BILLED
495.2
Bariri 4.5% 12,474.6 12,474.6
565.6
11.0%
11 0% MRE/CCEE*
Ibitinga 5.3% 1,366.6
655.9
Promissão 7.7%
964.2
964 2
Nova Avanhandava 10.6%
1,323.5
Mogi Guaçu 0.2%
31.7
31 7
*After deducing own consumption and transmission losses, the difference is addressed to the Energy Reallocation Mechanism – MRE
and to the Chamber of Energy Marketing – CCEE. 21
.

22. Generation and Reliability
In 2006 generation was 12% over the assured Plant Period Without
Accidents –Years
gy
energy
Ibitinga
Ibiti 18.5
18 5
Failure Index (FI) and Equivalent Availability Mogi-Guaçu 11.9
Factor (EAF) figures exceed the requirements Nova Avanhandava 9.0
established by the National Eclectic Energy Água Vermelha 8.4
Agency - ANEEL: 2.9 for (FI) and 92.8% for EAF Limoeiro 6.3
Barra Bonita 6.3
Average of 7 years of operations without
Promissão 4.8
accidents requiring removal of personnel from the
Caconde 3.7
worksite Euclides da Cunha 3.3
Bariri 1.0
Generation Failure Index x Availability
123% 120% 123% 97.2% 96.8%
117% 115% 96.1%
109% 107% 112% 94.2% 93.0%
92.6%
98% 90.9%
81%
3.0
2.8
2.5
25
2.2 2.3
1,617 1,619 1,581 1,502 1,392 1,467 1,424
1,258 1,363 1.7
1.6
1,040
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006
Generation - MW Average Generation / Assured Energy Failure Index - FI Equivalent Availability Factor - EAF
22

23. Bilateral Contract
Starting in January/2006: 1,268 MW (100% assured energy) is sold through the
bilateral contract with Eletropaulo
Price adjusted by 0.9% in July, based on IGP-M variation
Maturity: December, 2015
Collateral: receivables
October/2003: amendment extending its term of effectiveness until June/2028
In August/2005 ANEEL published the vetoing to the amendment, consequently Eletropaulo
has b oug t a lawsuit against ANEEL’s dec s o , which is now a a t g judg e t on merits by
as brought a su t aga st s decision, c s o awaiting judgment o e ts
a trial court
Average Revenue – R$/ MWh
133.9
119.6
94.4
73.6
73 6
54.0
48.8
45.9
2000 2001 2002 2003 2004 2005 Bilateral
Contrato
23

24. Results
R$ million
Net Revenue Costs and Operational Expenses
1,387
1.387 357
345
1,220
1 220
1.220
1 220
14% 18 38
3% 35
77
47
46
132 68
8%
8%
61
5 -36% 85
321 346
346 103
321 58 79
11 5 10 8
19 14
23 32 64 67
16 16
4Q05
4T05 4Q06
4T06 2005
2005 2006
2006 4Q05 4Q06 2005 2006
Power Purchase Royalties Others*
Operational Expenses Provisions Depreciation
2006 x 2005
Volume of energy sold to Eletropaulo 33.8% higher Power Purchase: raise of R$ 26.1 million on
– from 948 MW to 1,268 MW transmission fees as a greater volume was sold
to Eletropaulo
July/2006: Price readjustment of bilateral contract Others: the percentage of net revenues to be
(0.9%) applied to Research & Development was raised
from 0.25% to 1%
Allowance of R$ 58.3 million in 2005 for the
principal and interest on RTE (Special Price
Review) compared to R$ 17.7 million for RTE’s
monetary adjustment in 2006
24
*Others: R&D, fiscalization fees, insurance, hydro way and others

25. Results
R$ million
EBITDA
80.2% 77.0% 79.1%
17% 1,097
939
63.9%
205 278
36%
4Q05 4Q06 2005 2006
Greater volume of energy sold through bilateral contract - from 948 MW to 1,268
MW
July/2006: price readjustment of bilateral contract (0.9%)
Lower operating allowances
25

26. Results
R$ million
Financial Results Net Income
4Q05 4Q06 2005 2006 45.6%
45,6%
45 6% 44.3%
44,3%
7 47.7%
47,7%
45.2%
45,2%
10%
10%
614
614
(35) 556
14%
14%
145
145 165
(64)
4Q05
4T05 4Q06
4T06 2005 2006
72% (111) Lucro Líquido
Net Income Margem Líquida
Net margin
2006 x 2005: 2006 x 2005:
Accrual by Selic Interest rates on balance of 10% higher net income
RTE receivables of R$ 37.0 million in 2005
(4Q05) according to Annel requirement, Lower margin due to financial results
compared to R$ 17 7 million in 2006 (R$ 2.9
dt 17.7 illi i 29
4Q06 x 4Q05
million in 4Q06)
14% higher net income favored by reduction on
costs and operational expenses
Debts impacted by IGP-M variation
26

27. Debt
Cash availability = R$ 690.3 million (December/2006)
R$ million
Creditor Amount Maturity Terms Collateral
Eletrobras 1,364.8 May/13 IGP-M + 10% p.y. Receivables
FunCesp III 20.7 Sep/27 IGP-DI + 6% p.y. Receivables
Net Debt – R$ billion
3.3x 3.2x
3.0x
3 0x 2.0x
2 0x
1.4x
1.4 0.7x
1.3 0.6x
1.1 1.1 1.1
0.7 0.7
2000 2001 2002 2003 2004 2005 2006
Net Debt Net Debt / EBITDA
27

28. CAPEX
Capex – 2006: R$ 46.5 million Capex – 2006
Capex estimated - 2007: R$ 75 5 million:
75.5 12.5%
2.0%
R$ 22.4 million: Construction of three small hydropower plants
already belonging to the Company and located in the interior of
São Paulo State. Together, they will boast an installed capacity
29.5%
29 5% 55.4%
55 4%
of 8MW.
0.5%
The remaining will be basically used to restore the capacity of
and upgrade equipment: Equip. Hidroway PCH Environment IT
Bariri: Completion of the capacity restoration and
upgrading of Generating Unit #3
Promissão: Capacity restoration and upgrading of Capex – R$ million
Generating Unit #2
Nova Avanhandava: Capacity restoration and upgrading 75.5
of Generating Unit #1
Reforestation 46.5
30.5 27.5
Investment in Small Hydropower Plants 21.9
12.4
Acquisition of License to build three small hydropower plants
in the State of Rio de Janeiro, with a total installed capacity of
Janeiro
52 MW and average 28.97 MW of assured energy, still subject 2002 2003 2004 2005 2006 2007E
to the fulfillment of certain conditions and to ANEEL’s approval
– investment estimated in R$ 225 million in 2 years 28

29. Capital Markets
AES Tietê – Base 100 (dec/05) Average daily
trading volume (R$ thousand)
140
133
130 69%
124
120 122 4,196.9
4.196,9
GETI3
110 1,810.2
1.810,2
GETI4
100 1,624.5
1.624,5 1,619.7
1.619,7
90
dec-05 mar-06 jun-06 sep-06 dec-06 2005 2006
Ibovespa GETI3 GETI4
Remuneration Paid vs. Dividend Yield
12.0%
R$ 614.1 million 2006
11.4%
13.2%
R$ 539.0 million 2005
13.2%
2004 13.4%
R$ 276 9 million
276.9
12.3%
Common Preferred
29

30. Expansion Requirement
Requirement: increase installed capacity by at least 15% (approximately 400 MW), within a period of eight
y
years, starting from the date of execution of its Concession Contract in December, 1999
g
Requirement was established by the Privatization Documents and reflected in the “Share Purchase
Agreement”
It can be accomplished through:
b li h d th h
increasing the installed capacity in the State of São Paulo; or
energy purchasing from new plants, located in São Paulo, through long term agreements (at least 5
years)
Restriction to increase the capacity:
no hydro resource available in the Sate of São Paulo
environmental restrictions to thermal plants in São Paulo
gas supplyl
“New Model Law for the Electric Sector” (Law # 10,848/04)
Proposal from AES Tietê to the State Government of São Paulo:
Suspension of the obligation to increase the capacity for 5 years. During this period AES Tietê can
S i f th bli ti t i th it f D i thi i d Ti tê
analyze freely any project for investment, regardless the location
After the suspension period, in the case that restriction continue, a AES Tietê will be released of this
obligation
No amount of resources and/or obligation will be paid in compensation
The State Government has not yet responded to this proposal. 30

31. Conclusion
Generation was 12% higher than assured energy
EBITDA of R$ 1.1 billion in 2006, 16.8% higher than 2005. EBITDA
margin of 79.1% compared to 77.0% in the previous year.
i f 9 % d 0% i h i
Dividends and interest on equity distribution corresponding to 100% of
2006 Net Income, R$ 614.1 million*
* R$ 448.9 million paid in advance and R$ 165.2 to be deliberated during the Shareholders’ Meeting scheduled for April 9, 2007
31

32. The statements contained in this document with regard to the business prospects, projected
operating and financial results, and growth potential of AES Eletropaulo are merely forecasts based
on the expectations of Company 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 electricity sector and international market and they are therefore
market,
subject to change.
March 08, 2007