The document provides an overview of AES Brasil Group, which has a presence in Brazil since 1997 and is comprised of seven companies in the energy, distribution, trade and telecommunications sectors. It invests billions in Brazil and has over 7,000 employees. AES Brasil has strong corporate governance and sustainability practices. It has a differentiated dividend policy among its companies. The document also outlines AES Brasil's recognition for quality, safety, management excellence and environmental concern. It provides shareholding structures and lists AES Brasil as the second largest group in the Brazilian electric sector based on EBITDA and net income.

1. Institutional
January, 2011
1

2. AES Brasil Group
• Presence in Brazil since 1997
• Comprised of seven companies in the sectors
of energy generation, distribution, trade and
telecommunications
• 7.7 thousand AES Brasil People
• Investments 1998-2009: R$ 5.8 billion
• Good corporate governance practices
• Sustainable practices in businesses
• Safety as a main value
• Strong cash generation capacity
• 25% of minimum pay-out according to bylaws
• Differentiated dividend practice since 2006:
– AES Tietê: 100% pay-out on quarterly basis
– AES Eletropaulo: 95% pay-out on semi-
annually basis
2

3. AES Brasil widely recognized in 2009-2010
 Quality and safety
(AES Eletropaulo) (AES Sul) (AES Eletropaulo) (AES Eletropaulo)
 Management excellence
(AES Tietê) (AES Eletropaulo) (AES Tietê) (AES Tietê)
 Environmental concern
(AES Tietê)
(AES Brasil)
3

4. Shareholding Structure
AES Corp BNDES
C 50.00% + 1 share C 50.00% - 1 share
P 0.00% P 100%
T 46.15% T 53.85%
Cia. Brasiliana
de Energia
C 71.35% C 76.45%
C 99.99% C 99.00% P 32.34% P 7.38% C 98.25% C 99.99 %
T 99.70% T 99.99% T 99.00% T 52.55% T 34.87% T 98.25% T 99.99 %
AES AES AES AES AES AES Eletropaulo
AES Sul
Infoenergy Uruguaiana Tietê Eletropaulo Com Rio¹ Telecom¹
C = Common Shares
P = Preferred Shares
T = Total
4
1 – AES Atimus

5. Listed Companies Shareholding Composition
Free Float Others¹
16.1% 19.2% 56.2% 8.5%
24.2% 28.3% 39.5% 8.0%
5
1 – includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively

6. AES Brasil is the second largest group in
electric sector
Ebitda1 – 2009 (R$ Billion)
4.0
3.2
2.8 2.6
2.2
1.8 1.7
1.4
1.2
0.5
CEMIG AES BRASIL CPFL NEOENERGIA TRACTEBEL CESP COPEL EDP LIGHT DUKE
Net Income1 – 2009 (R$ Billion)
1.9 1.8
1.6
1.3
1.1
1.0
0.8
0.6 0.6
0.2
CEMIG AES BRASIL NEOENERGIA CPFL TRACTEBEL COPEL CESP EDP LIGHT DUKE
6
1 – excluding Eletrobrás Source: Companies’ financial reports

7. AES Tietê is an important player among private
energy generators
Generation Installed Capacity (MW) - 2010
Privately held companies
2% 2%
6%
4%  AES Tietê is the 2nd largest among private
35% 5%
generation companies and 10th largest overall
6%
 10 largest gencos correspond to 63% of the total
6% installed capacity
7%  There are three mega hydropower plants under
10%
8% construction in the North region of Brazil with 18 GW
9%
111 GW in installed capacity
AES TIETÊ DUKE
– Santo Antonio and Jirau (Madeira River): 7GW
TRACTEBEL COPEL
PETROBRÁS CEMIG – Belo Monte (Xingu River): 11GW
ITAIPU CESP
ELETRONORTE FURNAS
Source: ANEEL (Regulator) – BIG (October, 2010) 7
CHESF OTHERS

8. AES Brasil is the largest distribution group
in Brazil
Consumption (GWh) - 2009
13%
• 64 discos in Brazil distributing 388 TWh
40% 13% AES Brasil
• AES Brasil is the largest electricity
CPFL Energia distribution group in Brazil:
10% – AES Eletropaulo: 41 TWh distributed,
CEMIG
representing 10.6% of the Brazilian
7% Neoenergia market
5%
6% 6%
– AES Sul: 8 TWh distributed,
Consumers – Dec/2009 Copel
representing 1.9% of the Brazilian
13%
Light market
30%
12%  There is a limited opportunity for
EDP
competition in Brazil as discos are
Others restricted to operate within their
12% concession areas
5%
7%
6% 16% 8

10. AES Tietê Overview
Concession Area
 16 hydroelectric plants within the states of São Paulo and
Minas Gerais
 30-year concession valid until 2029; renewable for another
30 years
 Installed capacity of 2,657 MW, with physical guarantee1 of
1,280 MW
 All amount of energy that AES Tietê can sell in the long
term is contracted to AES Eletropaulo until the end of 2015
 As a pure energy generator, AES Tietê can only invest in
its core business
 335 employees
10
1 - Amount of energy allowed to be long term contracted

11. Energy sector in Brazil:
supply perspectives
Installed Energy Capacity in Brazil
 Total installed capacity is expected to reach 167 GW by 2019
 Brazilian energy matrix is not expected to materially change over the next 10 years
2010 2019
Natural gas; 8% Natural gas; 7%
Biomass; 5%
Biomass; 5%
SHPP; 4%
SHPP; 4%
Oil; 3% Oil; 5%
Nuclear; 2%
Nuclear; 2%
Others; 9% Diesel; 1% Others; 9% Diesel; 1%
Hydro; 74% Hydro; 70%
Wind; 1% Wind; 4%
Coal; 1% Coal; 2%
Steam; 1% Steam; 0%
112 GW Annual Growth: 4.5% p.a. 167 GW
11
1 - Small Hydro Power Plant Source: EPE (Energetic Research Company)

12. Energy sector in Brazil:
contracting environment
Regulated Market Free Market
Auctions Spot Market PPAs1
Trading Trading
Distribution Companies Companies Companies
Free Clients Free Clients
• Main auctions (reverse auctions):
Distribution
– New Energy (A-5): Delivery in 5 years, 15-
Companies
30 years regulated PPA1
– New Energy (A-3): Delivery in 3 years, 15-
30 years regulated PPA
– Existing Energy (A-1): Delivery in 1 year,
5-15 years PPA
12
1 – Power Purchase Agreement

13. Operational Performance: billed energy growth
due to high availability and bilateral contracts
Energy Generation (MW average1) Billed Energy (GWh)
130% 129%
14,706
127%
13,421 13,148
121% 118% 117
1,150
573 331 11,483
10,917
1,740 1,680 2,331 55 215
701 1,135
1,640 1,554
1,703
1,665 1,649 11,108 11,138 11,108
8,521 8,578
1,545
1,512
2007 2008 2009 9M09 9M10 2007 2008 2009 9M09 9M10
Generation - MWAvg Generation / Physical Guarantee AES Eletropaulo MRE Spot market Other bilateral contracts
13
1- Generated energy divided by the amount of hours 2- Energy Reallocation Mechanism

14. 2010: higher investments in maintenance and
modernization of power plants
Investments Breakdown (R$ million) 9M10 Investments
2% 2%
13%
93
12
54
59
57
51 83%
8 20 13 33 7
80
11
43 39 43 46
22
Equipment and Maintenance
2007 2008 2009 2010 (e) 9M09 9M10
New SHHPs
1
Investments New SHHPs IT
Environment
1 – Small Hydro Power Plants
14

15. Projects - Expansion Requirement
AES Tietê has been seeking opportunities to increase its installed capacity to comply with the 15%
increase requirement in the State of São Paulo
Concluded  6 MW of co-generation through biomass, contracted for 15 years beginning in 2010
(PPA1)
 7 MW of hydro generation through SHPPs2 in Jaguari Mirim River
Under
Construction – São José SHPP (4 MW) has an estimated start-up in 1H11
– São Joaquim SHPP (3 MW) has an estimated start-up in 1H11
 550 MW of thermo generation through natural gas
Under
Development – Location has been defined in Nov/2009
– Initiation of the environmental licensing process, conclusion estimated for 1H11
– Technical feasibility study concluded
– Participation in public auction (A-5) estimated for 2H11
15
1 – Power Purchase Agreement 2 – Small Hydro Power Plants

16. Financial highlights
Net Revenue (R$ million) Ebitda (R$ million)
: 5%
CAGR
R: 7%
CAG
1,605 1,670 1,254 1,260
1,449 1,099
1,277 1,334 1,028 1,041
2007 2008 2009 9M09 9M10 2007 2008 2009 9M09 9M10
16

17. Financial highlights:
100% pay-out on quarterly basis
Net Income and Dividend Payout1 (R$ million)
1 – Gross amount 17

18. Low debt with stable Net Debt/Ebitda ratio
Net Debt (R$ billion) Amortization Schedule – Principal (R$ million)
• September, 2010:
– Average debt cost in 9M10 was 110% of CDI1 or 13.1% p.a.
– Average debt maturity of 3.5 years
– Net debt: R$ 0.4 billion
– Net debt/EBITDA: 0.3x
18
1- Brazilian Interbank Interest Rate

19. Capital Markets
AES Tietê X Ibovespa X IEE Daily Avg. Volume - R$ thousand
Last 12 months1
125
+ 24%
120
13,634
+ 14%
115 10,187
+ 13%
+ 13% 9,096 4,198
110
8,160
105 2,101
3,566 2,692
100
95 9,436
8,086
90 5,531 5,468
85
Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
2007 2008 2009 9M10
GETI4 IEE IBOV TSR
Preferred Common
• Common shares and preferred shares listed on BM&FBOVESPA
under the tickers GETI3 and GETI4
• ADRs at US OTC Market under the tickers AESAY and AESYY
19
1 – Index: 09/30/09= 100 2 – Total Shareholder Return – considers preferred shares price variation and dividends declared in the period

21. AES Eletropaulo Overview
Concession Area
 Largest electricity distribution company in Latin America
 Serving 24 municipalities in the São Paulo Metropolitan area
 Concession contract valid until 2028
 Concession area with the highest GDP in Brazil
 46 thousand kilometers of lines, 1.1 million electricity poles and
6.0 million consumption units in a concession area of 4,526 km2
 Total distributed volume of 41 TWh in 2009
 As a pure energy distributor, AES Eletropaulo can only invest
within its concession area
 4,557 employees
21

22. Energy sector in Brazil:
demand perspectives
Macroeconomic Scenario
EPE’s1 Assumptions:
GDP - Annual growth
• Global financial sector recovery will not
2004-2008 2010-2014 2015-2019
take longer;
World 4.6 4.2 4.0
Brazil 4.7 5.2 5.0 • Brazilian economic growth will outpace
global average growth, even in an
Brazilian Consumption Evolution (TWh) international context of moderate
expansion;
5.0% p.a
633
• Emerging markets – especially China –
4.4% p.a.
will grow faster than developed
economies, positively affecting industrial
420
393 388 sector in Brazil;
358 378
331 346
• Income elasticity of energy demand (2010-
2019): 1.04
• Households growth: 2.2% p.a
2004 2005 2006 2007 2008 2009 2010 2019
22
1 - Source: EPE (Energetic Research Company)

23. Energy sector in Brazil:
regulatory methodology
Tariff Reset and Readjustment
• Tariff Reset is applied each 4 years for AES Eletropaulo • Parcel A Costs
− Next Jul/2011 − Non-manageable costs that totally
− Parcel A: costs pass trough the tariff Energy pass- through to the tariff
Purchase − Losses reduction improve the pass-
− Parcel B: costs are set by ANEEL Transmission
through effectiveness
Sector Charges
• Tariff Readjustment: annually
− Parcel A costs pass trough the tariff
Reference
− Parcel B cost are adjusted by IGPM +/- X(1) Factor • Reference Company:
Company
(PMSO) – Efficient cost structure, determined by
ANEEL (National Electricity Agency)
X WACC Investment
Remuneration
• Remuneration Asset Base:
Remuneration
Asset Base – Applicable investments used to
calculate the Investment Remuneration
X Depreciation
Depreciation (applying WACC) and Depreciation
Regulatory Parcel A - Non-Manageable Costs
Ebitda Parcel B - Manageable Costs 23
(1) X Factor: index that capture productivity gains

24. Consumption Evolution
Total Market (GWh1) 9M10 Consumption Share (GWh1)
1%
CAGR: 6%
6%
41,243 41,269 14%
14%
45,000 39,932
36%
36%
40,000
7,383 6,832 32,186
7,355 30,377 18%
35,000 18%
30,000
5,024 5,834
25,000
26%
26%
20,000
32,577 33,860 34,436
15,000
25,353 26,352
10,000
Residential
5,000
0
Commercial
2007 2008 2009 9M09 9M10 Free Clients
Captive Market Free Clients Industrial
Others
1 – Net of own consumption 24

25. Investments amounted
R$ 383 million in 9M10
Investments Breakdown (R$ million) Investments 9M10
3% 3%
800
673 6%
700
36 13%
600 516
457 52%
500 37
47 383
324 24%
400
22
637 26
300
478
200 410 362
298
100 Customer Service / System Expansion
0 Maintenance
2008 2009 2010(e) 9M09 9M10 Losses Recovery
Paid by the Clients
Capex Paid by Customers
Others
IT
25

26. SAIDI & SAIFI
SAIDI - System Average Interruption Duration Index
15 SAIFI - System Average Interruption Frequency Index
9.00
13 10.09 8.49 8.41
11.34 8.50
12.00 10.92 7.87
11 8.00
10.00 6.50
7.50
9
8.00 7.00
6.00
7 11.86 11.95 6.50
6.00 11.01 5.50
8.90 9.20 6.00
6.17 6.06
4.00
5 5.00 5.78
5.50 5.64
5.20
2.00 5.00
4.50
3
4.50
4.00
0.00
1 2007 2008 2009 9M09 9M10 4.00 2007 2008 2009 9M09 9M10
3rd 5th 8th 1st 1st 7th
SAIDI (hours) SAIDI Aneel Target SAIFI (times) SAIFI Aneel Target
► 2010 SAIDI ANEEL Target: 9.32 hours ► 2010 SAIFI ANEEL Target: 7.39 times
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
1 – System Average interruption Duration Index 2 – System Average Interruption Frequency Index Sources: ANEEL. AES Eletropaulo and ABRADEE
26

27. Operational Indexes
Collection Rate (% over gross revenue) Losses (%)
0.2 p.p.
1.6 p.p.
110.0
14.0 11.5 11.6 11.7 12.0
105.0 101.1 101.4 101.5 11.0
99.5 98.5 12.0
100.0
10.0
5.0 5.1 5.2 5.5 4.5
95.0 8.0
6.0
90.0
4.0
6.5 6.5 6.5 6.5 6.5
85.0
2.0
80.0 0.0
2007¹ 2008 2009 9M09 9M10 2007 2008 2009 9M09 9M10
Technical Losses² Commercial Losses
• Disconnections and Reconnections – Monthly Average (9M09 X 9M10) • Fraud and Illegal Connections (9M10)
– Disconnections: increase from 81 thousand to 97 thousand – 348 thousand inspections e 32 thousand frauds detected
– Reconnection: increase from 54 thousand to 87 thousand – 47 thousand illegal connections regularized
• Past due bill credit report (9M10 monthly average): 255 thousand
27
1 – The previous calculation methodology 2 - Current technical losses used retroactively as reference

28. Financial Highlights
Net Revenues (R$ million) Ebitda (R$ million)
: 4.2% CAGR: 0.2%
CAGR
9,000 2,500
8,050
8,000
7,530 1,696
7,193 2,000
1,566 1,573 1,590
6,534
7,000
5,855 1,500 1,142
6,000
1,000
5,000
500
4,000
3,000 0
2007 2008 2009 9M09 9M10 2007 2008 2009 9M09 9M10
28

29. Practice of 95% pay-out
on semi-annually basis
Net Income and Dividend Payout1 (R$ million)
100.3% 101.5% 101.6%
24.0%
100.0%
20.4% 22.0%
20.3%
80.0% 20.0%
18.0%
60.0% 14.4% 16.0%
14.0%
40.0%
12.0%
1,027 1,063 10.0%
20.0%
911
8.0%
713
0.0% 538
6.0%
2007 2008 2009 9M09 9M10
Net Income Pay-out Yeld PNB
29
1 – Gross amount

30. Debt Profile
Net Debt (R$ billion) Amortization Schedule – Principal (R$ million)
1.8x 1.8x
1.5x 1.5x
1.4x 1.914
1.361
3.0 3.2 3.1
2.5 2.7 599
322 342 365 74 416
301 312
20 65 69 84
71 525 79 89 553
251 277 296 223 333 223
2007 2008 2009 3Q09 3Q10 2010 2011 2012 2013 2014 2015 2016 2017 2018 -
2028
Net Debt/Ebitda Adjusted with Fcesp Local Currency (ex FCesp) Fcesp¹
Net Debt (R$ billion)
• September, 2010:
– Average debt cost in 9M10 was 110% of CDI1 or 12.9% p.a.
– Average debt maturity of 7 years
– Net debt: R$ 3.1 billion
– Net debt/EBITDA of 1.8x adjusted with Pension Fund
30
1- Brazilian Interbank Interest Rate

31. Capital Markets
AES Eletropaulo X Ibovespa X IEE Average Daily Volume (R$ thousand)
Last 12 months¹ 26,066
B 27,000.00 25,677 25,482
120 A
+ 14%25,000.00
115
+ 13%
110 21,960
+ 7%23,000.00
105
100 21,000.00
95
19,000.00
90
85 - 16%17,000.00
80
75 15,000.00
Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 2007 2008 2009 9M10
Ibovespa IEE AES Eletropaulo PNB AES Eletropaulo TSR²
A Ex dividends: 05/01/2010 B Ex dividends: 08/06/2010
• Common shares and preferred shares class A and B listed on
BM&FBOVESPA under the tickers ELPL3, ELPL5 and ELPL6
• ADRs at US OTC Market under the tickers EPUMY and ELPSY
31
1 – Index: 09/30/2009 = 100 2 – Total Shareholder Return - considers preferred shares price variation and dividends declared in the period

32. Social Responsibility

33. Social Responsibility
“Casa da Cultura e Cidadania” Project
• Over 6.7 thousand children, teenagers,
and adults have been benefited
• Own and incentive investments:
approximately R$ 15 million in 2009
• Activities of acting, dancing, circus arts, visual arts, music, gymnastics,
courses of income generation, and education of safe use of electrical
power and the right use of natural resources
• 7 operating units
“Centros Educacionais Infantis Luz e Lápis” - Project
• 300 benefited children between 1 and 6 years old
• Own investments amounting R$ 1.5 million in 2009
• Units: Santo Amaro and Guarapiranga
33

34. Social Responsibility
Volunteering Program
Distributing Acting to
Energy of Transform
Good
Specific social mobilization or Opportunities for volunteering in
emergency campaign. social organizations, which are
partners of AES Brazil
Winter clothes, Christmas Co-workers can enroll in
campaign, among others. volunteer activities available at
AES Brazil volunteering portal
since September/09
www.energiadobem.com.br
• Launched in December, 2008;
• Objective: to get the co-workers committed to the transformation of low income communities and development of
non-governmental institutions;
• 1,137 volunteers 34

35. Attachments

36. Brazilian Economy: good performance,
fast recovery after financial crisis
Brazil - GDP and Investment - Annual growth - % (IBGE)
20.9
13.9 13.6 • Strong growth was interrupted
6.1 7.3 by the financial crisis
5.2
(0.6)
• The GDP for 2009 was mainly
affected by lower investment
(10.3)
(reversal of expectations)
2007 2008 2009 2010
(1)
GDP Investment (Gross Fixed Capital Formation)
• Brazil´s economic performance
GDP growth - Brazil x Other countries (IBGE, BCB, IMF and OECD)
during crisis was better than
6.1 7.3
5.7 5.2 5.6 other countries
5.3 3.6
3.1
3.9
• Expectations for 2010 are
-0.6
optimistic
-2.2
-2.2
2007 2008 2009 2010
(2)
Brazil Emerging markets (ex Brazil, India and China) OECD
1) Expected – Monthly Inflation Report (Brazilian Central Bank) 36
2) OECD (Organization for Economic Co-operation and Development) – international organization of 31 developed countries.

37. Brazilian Economy: industry recovery and
recent foreign trade expansion
Brazil – Industrial production - Annual growth - % (IBGE)
11.1
6.0
3.1 2.8 3.1 • Brazilian industry has reached
pre-crisis level since mar/10
• In 2010, industry is expected to
(7.4) grow 10.5%
2005 2006 2007 2008 2009 Jan-
Nov/2010
• Exports limited the recovery in
Brazil – Trade Balance – US$ billion (Funcex)
2009
25
20
15 • 2010: growth of exports (world
10
5
economy recovery) and imports
0 (capital goods)
-5
-10
-15
-20
Jan-07
Jan-08
Jan-09
Jan-10
Jul-07
Jul-08
Jul-09
Jul-10
Apr-07
Apr-08
Apr-09
Apr-10
Oct-07
Oct-08
Oct-09
37
Exports Imports Trade Balance

38. Domestic market is responsible for the
Unemployment rate - % (IBGE)
good performance
14
13
12 • Brazilian´s good performance
10.7
11
9.6 9.6
10 was driven by the expansion of
9 8.3
7.6 7.4
8
7
the domestic market
5.7
6
5 – Unemployment rate has been
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
decreasing over the years
Real average income (R$) and income inequality (IBGE and IPEA)
1.600 0,59
0.583
– Real income has been growing
1.500 0,58
0.572
0.569
1.400 0.563 0,57 persistently since 2005
0,56
0.556
1.300
0.548 1,492 0,55 – There was an improvement in
1,427
1,394
0.543
1,341
1.200
1,295
0,54
1,240
income distribution
1,212
1,210
1.100 0,53
1.000 0,52
2003 2004 2005 2006 2007 2008 2009 2010
Real average income Gini Index (1)
38
1) It measures the degree of income inequality. It may vary from 0 (complete equality) to 1 (complete inequality).

39. Domestic market is responsible for the
good performance
Brazil – Loans to individuals – R$ million (BCB)
600
537
500 470
394 • Besides the improvement on
400
318
labor market, credit expansion
300 238
191 was also responsible for the
200
100 good performance
2005 2006 2007 2008 2009 Oct*
Brazil – Retail Sales – seasonally adjusted – 2003 = 100 (IBGE) • Retail sales is growing fast:
180
170 – 5.9% in 2009 despite the crisis
160
150
– 7.2% p. a. between 2005 and 2009
140
130
– 11.1% in 2010 (Jan-Oct)
120
110
100
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
39

40. Costs and Expenses
Costs and operational expenses1 (R$ million)
409
365
351
292
84 196 249
112
119
90
281
239 214
159 174
2007 2008 2009 9M09 9M10
Energy Purchase, Transmission and Connection Charges, and Water Resources
2
Other Costs and Expenses
1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 40

41. Costs and Expenses
Costs and operational expenses1 (R$ million)
6,422
5,893
5,537
1,312 5,137
1,193 4,678
1,440 965
919
4,700 5,110
4,097 3,759 4,172
2007 2008 2009 9M09 9M10
Energy Supply and Transmission Charges PMS² and Others Expenses
1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 41

42. Expansion Requirement of 15%
 Increase installed capacity in Sao Paulo State by 15% (400 MW), either in greenfield projects or through long term
purchase agreement with new plants
 The obligation was supposed to be accomplished by December 2007, however AES Tietê was not able to comply with this
requirement due to the following restrictions:
– Insufficient remaining hydro resources within the State of São Paulo
– Environmental restrictions
– Insufficiency of gas supply / timing issue
– More restricted regulation on energy sale established by the New Model of Electric Sector (Law # 10,848/2004) which eliminated the self
dealing
• In August 2008, Aneel informed that the issue is not linked to the concession
• On July 27, 2009, AES Tietê was notified by the State Government Attorney’s Office to present arguments on compliance
with the expansion obligation
– The Company filed a response on July, 29th, which exhausts the procedure for notification. Possible deployment depends on
new manifestation of the Prosecution
• Popular law action against Federal Government, Aneel, AES Tietê, and Duke
– 2008 – In October, defense filed on first instance by AES Tietê; In December, the author replied AES Tietê defense
– 2010 – In September, due to the plaintiffs failure to specify the individuals that should be named as Defendants, a favorable
decision was rendered by the 1st Instance Court (but there can be appeals)
42

43. Eletrobras Lawsuit
State-owned
Eletropaulo was
spun-off into four Eletrobras, after
companies and, winning the
according to our Eletrobras and Eletrobras
Stated-owned interest
understanding CTEEP appealed requested the 1st
Eletropaulo calculation Next Steps:
based on the to the Superior level of court
borrowed money discussion, filed
spin-off Court of Justice judge to appoint
from Eletrobras an Execution Suit
agreement, the (SCJ) an expert
to collect the due 1- Eletrobras will
discussion was amount request the
transferred to auditing process
CTEEP
2 - The auditing
procedure will be
concluded at least
in 6 months
3 - After
Nov/86 Dec/88 Jan/98 Apr/98 Sep/01 Sep/03 Oct/05 Jun/06 May/09 Feb/10 conclusion of the
expert work, the 1st
level of court
decision will be
released
4 - Appealing to
The Judge the 2nd level of
appointed the court
State-owned
The 2nd level of expert who will
Eletropaulo and Privatization 5 - Appealing to
court excluded The SCJ decided indicate the amount
Eletrobras event . State- the 3rd level of
AES Eletropaulo to send the and the debtor
disagreed on how owned court
from the Execution Suit
to calculate Eletropaulo Due to a paperwork
discussion based back to the 1st
interest over that became AES issue, Eletrobras
on the spin-off level of court
loan and a lawsuit Eletropaulo will request the
agreement
was started expert selection
again
43

44. Shareholders Agreement
On Dec 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship as shareholders of
Brasiliana and its controlled companies. The Agreement is available at www.aeseletropaulo.com.br/ri
Shareholders can dispose its share at any time, considering the following terms:
Right of 1st  Any party with an intention to dispose its shares should first provide the other party the right to buy
refusal that participation at the same price offered by a third party
Tag along  In the case of change in Brasiliana’s control, tag along rights are triggered for the following
rights companies (only if AES is no longer controlling shareholder):
– AES Eletropaulo: Tag along of 100% in its common and preferred shares
– AES Tietê: Tag along of 80% in its common shares
– AES Elpa: Tag along of 80% in its common shares
Drag along  Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of all
rights its shares at the time, if the Right of 1st Refusal is not exercised by offered party
44

45. Brazilian Main Taxes
AES Tietê
AES Eletropaulo
• Income Tax / Social Contribution:
• Income Tax / Social Contribution:
– 34% over taxable income
– 34% over taxable income
• ICMS (VAT tax) • ICMS: 22% over Revenue (average rate)
– deferred tax – Residential: 25%
• PIS/Cofins (sales tax): – Industrial and Commercial: 18%
– Eletropaulo´s PPA: 3.65% over Revenue – Public Entities: free
– Other bilateral contracts: 9.25% over Revenue • PIS/Cofins:
minus Costs – 9.25% over Revenue minus Costs
45

46. Contacts:
ri.aeseletropaulo@aes.com
ri.aestiete@aes.com
+ 55 11 2195 7048
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.