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  • 2008 Results

    March, 2009

  • Main highlights in 2008Main highlights in 2008

    2008 3.9% growth of captive market 8.3% increase on Ebitda, totalizing R$ 1,696 million R$ 1,027 million Net Income, 44.1% above 2007 + 8.01% average Tariff readjustment Finsocial Final Decision generating R$ 299 million in tax credits Proposal of R$ 69 million of interest on equity

    Subsequent Events Agreement with the bankrupt entity of Banco Santos: Payment of R$ 151 million on January

    09, with positive R$ 62 million impact. Accounting write-down moment in analysis.

    Agreement with the So Paulo Municipality in the amounting to R$ 344 million, to be paid in four annual installments beginning in July 09. The fulfillment of the agreement is bound to the realization of investments by of So Paulo by Eletropaulo, totaling R $ 172 million

    Dividends payment proposal of R$ 615 million in complimentary dividends, to be subjected to the Annual Shareholders Agreement:

    R$ 3.46 per Common share and R$ 3.81 per Preferred share

    2

  • Total market growth of 2.3% in the 4Q08Total market growth of 2.3% in the 4Q08

    1 - Own consumption not considered

    +8.6%+8.6% +12.6%+12.6% +10.1%+10.1% +11.0%+11.0% +10.1%+10.1%

    4Q084Q07Average Tariff of Sold Energy R$ / MWh

    246205

    252229257

    228271279 257 277

    Residential Industrial Commercial Others Total Market

    +6.3%+6.3% +4.5%+4.5% --7.2%7.2% +2.3%+2.3%+5.2%+5.2%+0.4%+0.4% +1.9%+1.9%

    Residential Industrial Commercial Public Sector and Others

    Total Market

    Consumption Evolution - (GWh)1

    Captive Market Free Clients

    8,381

    645

    2,5651,675

    3,497

    10,275

    1,894657

    1,758

    8,756

    3,719

    1,6812,698

    10,513

    4Q084Q07

    3

  • ... and 3.3% annual growth... and 3.3% annual growth

    1 - Own consumption not considered

    +6.9%+6.9% +3.9%+3.9% +0.4%+0.4% +3.3%+3.3%+2.3%+2.3%+1.3%+1.3% +1.7%+1.7%

    Residential Industrial Commercial Public Sector and Others

    Total Market

    Consumption Evolution - (GWh)1

    Captive Market Free Clients

    20082007

    7,355

    39,932

    13,500

    6,47510,072

    2,530

    32,577

    41,243

    10,3016,559

    14,427

    33,860

    7,3832,573

    --2.7%2.7% --3.2%3.2% --3.1%3.1%

    20082007Average Tariff of Sold Energy R$ / MWh

    Residential Industrial Commercial Others Total Market

    269224

    275247

    284

    217261270 247 267

    --5.0%5.0% +0.2%+0.2%

    4

  • 5Stabilization of new billing system CCS over 2008Stabilization of new billing system CCS over 2008

    Cuts and Reconnection Monthly Average (2007 X 2008) Cuts: reduction from 112 thousand to 51 thousand

    Reconnection: reduction from 71 thousand to 36 thousand

    Cuts and Reconnection Monthly Average (3Q08 X 4Q08) Cuts: increase from 34 thousand to 55 thousand

    Reconnection: increase from 33 thousand to 46 thousand

    Collection Rate % over Gross Revenue

    3Q08 4Q08

    98.697.4

    2008

    97.8

    2007

    99.5

    2006

    99.1

    2005

    99.0

    +1.2 pp+1.2 pp--1.2 pp1.2 pp

    Bad debtor list 2nd Semester 2007: 115 thousand

    1st Semester 2008: 93 thousand

    2nd Semester 2008: 443 thousand

  • Electric losses Electric losses

    Fraud and Illegal Connections (2008) 435 thousand inspections and 58 thousand frauds detected

    75 thousand illegal connections regularized

    1 - Current Technical Losses used retroactively as reference

    Loss Reduction %

    2008200720062005

    6.46.4 5.55.5 5.15.1

    6.56.5 6.56.5 6.56.5

    11.612.9

    12.0

    5.05.0

    6.56.5

    11.5

    Commercial Losses

    Technical Losses1

    --1.31.3 pppp

    6

  • 1 Duration of Interruptions 2 Frequency of Interruptions

    Source: Aneel and Eletropaulo

    Best FEC of AES Eletropaulo historyBest FEC of AES Eletropaulo history

    DEC1 and FEC2

    12.3811.81 11.34 10.92

    12.57 12.79

    8.95 8.68 8.66 8.61 8.49 8.41

    6.91 6.835.64 5.20

    9.208.907.87

    9.088.21

    8.94

    5.526.41

    2003 2004 2005 2006 2007 2008

    DEC (hours) FEC (times) DEC Aneel Standard FEC Aneel Standard

    7

  • 4747

    Investments of R$ 457 million in 2008Investments of R$ 457 million in 2008

    Investments R$ million Investments 2008

    2005 2006 2007 2008 2009e

    Customer financed

    Capex

    355355301301

    364364410410

    49496969

    404404378378

    433433457457

    482482

    7777

    8080

    562562

    10%10%

    5%5%

    12%12%

    18%18%

    10%10%

    45%45%

    Customer Service and System Expansion

    Customer Financed

    Loss Recovery

    Maintenance

    IT

    Others

    8

  • 93.9% growth of revenue3.9% growth of revenue

    3.9% growth on captive market during 2008

    4.5% growth on captive market comparing the 4Q08 x 4Q07

    Positive effect of R$ 201 million in the 4Q07 due to energia livre write-off

    Gross Revenue - R$ million

    2007 2008 4Q07 4Q08

    Deductions from Gross Revenue

    Net Revenue

    7,1937,193 7,5307,530

    1,8321,832 1,9901,990

    4,1134,113

    1,0111,011 1,1311,131

    11,30611,306 11,75111,751

    2,8432,843 3,1213,121

    4,2214,221

    +3.9%+3.9%

    +9.8%+9.8%

    +4.7%+4.7%

    +8.6%+8.6%

  • Price per MWhTiet: 2007: R$ 131.98 2008: R$ 149.72Itaipu: 2007: US$ 46.38 2008: US$ 48.02 Auctions: 2007: R$ 67.36 2008: R$ 76.72Total average price: 2007: R$ 95.84 2008: R$ 101.68

    1 - Depreciation not included 2 - Personnel, Material and Services

    Rising costs of energy purchaseRising costs of energy purchase

    Energy Costs and Operating Expenses1 - R$ million

    2007 2008 4Q07 4Q08

    Energy Supply and Transmission Charges

    PMS2 and Other Expenses

    4,0974,0974,7004,700

    1,0131,013 1,2221,222

    1,4401,440

    612612 293293

    5,5375,5375,8935,893

    1,6251,625 1,5151,515

    1,1931,193

    10

    +6.4%+6.4%

    --6.8%6.8%

  • --17.1%17.1%

    Better performance of operating expensesBetter performance of operating expenses

    2007 Provisions and Contingencies

    ADA1 and Write-Off

    RTE and Energia Livre

    2008

    Accumulated 12 Months R$ million 4Q08 R$ million

    (22)

    (160)93(158)

    1,193

    1,440

    Others 2 Provisions and Contingencies

    ADA1 and Write-Off

    RTE and Energia Livre

    (50)(160)(11)

    (98)

    293

    612

    Others 24Q07 4Q08

    --52.1%52.1%

    1 - Allowance for doubtful accounts2 - Personnel, Material, Third Party Services, FCESP, Leasing and Rents, Indemnifications, Losses, Publicity, Banking Fees, IPTU among others

    11

  • The other expenses and revenues now affect the operational result

    R$ 89 million recorded in 4Q08, referring to Finsocial tax credits

    R$ 44 million in 4Q07, related to substation automation system assets write-off

    12

    Recovery of Finsocial in 2008Recovery of Finsocial in 2008

    Other Revenues and Expenses R$ million

    2007 2008 4Q07 4Q08

    (91)(61)

    8060 Finsocial (R$ million)

    Other Revenues 89

    Financial Revenue 210

    Total 299

  • NetRevenue

    FINSOCIALProvisionsAnd

    Conting.

    OthersEnergy Supply and

    Transmission Charges

    NetRevenue

    PIS/ COFINS

    FINSOCIALProvisionsAnd

    Conting.

    OthersEnergy Supply and

    Transmission Charges

    12 Months Accumulated R$ million 4Q08 R$ million

    8.3% annual growth of Ebitda8.3% annual growth of Ebitda

    1 Change on PIS/ COFINS taxation system with Tiet on June, 2007

    2007 2008

    158

    4Q07 4Q08

    (169)

    1,5661,566

    555555

    358

    (51)

    9773

    89

    89

    (435)538

    (209)

    Ebitda

    146146

    13

    1,6961,696

    +8.3%+8.3%

    +280.4%+280.4%

  • 14

    Improvement of financial resultImprovement of financial result

    R$ 210 million of Finsocial monetary adjustment

    R$ 191 million reversal of Cofins - calculation basis enlargement

    R$ 72 million provision of a penalty for the Cofins - taxation increase

    Reduction of 37.1% on financial expenses in 2008

    Financial Result R$ million

    Finsocial (R$ million)

    Other Revenues R$ 89

    Financial Revenue R$ 210

    Total R$ 299

    2007 2008 4Q07 4Q08

    (104)(145)

    231129

  • Average Term - YearsCDI2

    Continuous net debt reductionContinuous net debt reduction

    4.4x

    Net Debt (R$ billion) Net Debt / Adjusted EBITDA1

    Net Debt Average Cost and Average Term (Principal)

    2005

    4.6

    2006

    3.7

    2007

    3.0

    2008

    2.5

    4T07

    123.3%

    1T08

    125.3%

    2T08

    120.9%

    3T08

    107.8%

    4T08

    102.8%

    2.1x1.3x 1.2x

    6.8 6.67.8 7.7 7.1

    1 - Accumulated 12 Months Adjusted EBITDA 2 Brazils Interbank Interest Rate 15

  • 16

    Sustainable amortization scheduleSustainable amortization schedule

    99.3% of total debt in local currency

    0.7% of total debt in foreign currency (R$ 28 million): 96% protected by hedge

    Debt with FCesp extended from 2022 to 2028, causing the decrease of annual amortization from R$ 117 million to R$ 102 million

    Amortization Schedule Principal R$ million

    99

    524524250250 250250 250250

    5050 125125375375258258

    117117

    117117 117117 117117

    117117117117

    1,1621,162

    2727

    2009 2010 2011 2012 2013 2014 2015 2016-2028

    National Currency (e