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 São 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 São 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

5

Stabilization 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

9

3.9% 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 MWhTietê: 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 ¹

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 Tietê 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 – Brazil’s 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 (ex. FCESP)

FCESP1

Foreign Currency2

1 - FCesp = Pension Fund2 - Exchange rate on 12/31/2008 – US$ 1.00 = R$ 2.3370

17

More than R$ 1.5 billion in cashMore than R$ 1.5 billion in cash

2007 1Q08 2Q08 3Q08 4Q08 2008

1,166 1,334 1,478 1,454 1,373 1,334

2,488 418 497 613 491 2,019

(407) (80) (60) (107) (126) (374)

(501) (101) (41) (107) (37) (285)

(182) (4) (30) (21) (40) (94)

(198) (57) (58) (32) (46) (192)

(418) (33) (114) (68) (80) (295)

(615) (0) (218) (359) - (577)

168 144 (24) (81) 162 201

1,334 1,478 1,454 1,373 1,536 1,536

Managerial Cash Flow1 – R$ million

Initial Cash

Operating Cash Flow

Investments

Net Financial Expenses

Net Amortizations

CESP Foundation

Income Tax

Dividends

Free Cash Flow

Final Cash

► The Company keeps its cash invested on Certificates of Deposit (CDs) and Government Notes, with average profitability of 102.4% of CDI on 2008

► Increase in annual average cash balance:– R$ 1,106 million in 2007 x R$ 1,411 million in 2008

Net Income of 2008 over R$ 1.0 billion

Net Income – R$ million Dividend Payout

2007 2008 4T07 4T08

713

1,027

10

529

2006

34.9%

2007

100.3%

2008

101.5%

3.2%

14.4%20.3%

130 715

1,043

Dividends1 Pay-out Yield2

1 - Includes complementary dividends 2 – Average Price of the Period 3 – Interst on Equity net of taxes18

► Proposed earnings to be submitted to the Ordinary Shareholders Meeting on April 27, 2009

► Proposed Dividends of R$ 615 million- R$ 3.46 per common share and R$ 3.81 per preferred share

- Ex-dividends date: april /28/2009

- Payment:

- 1st installment of R$ 307.5 million on may/14/2009

- 2nd installment of R$ 307.5 million on december/10/2009

► Interest on Equity2: R$ 69 million- R$ 0.39 per common share and R$ 0.43 per preferred

share

- Ex-interest on equity date: december/20/2008

- Payment: may/14/2009

Corporate governanceCorporate governance

2005

4,171

2006 2007 2008

7,508

26,066 25,677

+80.0%+80.0%

+247.2%+247.2%

AES Eletropaulo X Ibovespa X IEE Daily Average Volume3 - R$ thousand

1 - Index –12/29/07 = 100 2- Index – 12/30/08 = 100 3 – Preferred shares Class B

IBOV

IEE

ELPL6

19

-29,9%

2.8%

18.1%

-11.6%

-41,2%50

60

70

80

90

100

110

120

dez-071 fev-08 abr-08 jun-08 ago-08 out-08 dez-08

95

100

105

110

115

120

125

130

dez-082 jan-09 fev-09 mar-09

3.6%

2009

► More than 1 thousand children, teenagers and adults benefited

► Unit location: Vila Guacuri, in São Paulo

► Own and encouraged Investments: about R$ 3 million in 2008

► Activities: theater, dance, music, circus arts, visual arts, artistic gymnastics and courses of income generation

“Casa da Cultura e Cidadania” Project

► 280 benefited children between 1 and 6 years old

► Own investments amounting R$ 1.5 million in 2008

► Units: Santo Amaro and Guarapiranga

“Centros Educacionais Infantis Luz e Lápis” - Project

20

Social Social ResponsibilityResponsibility

Volunteer Project

Distributing “Energia do Bem “

Performing to transform Endeavoring in the community

21

One more year of awardsOne more year of awards

► Maintenance on ISE (Sustainability Index) for 2009 (BM&FBovespa – Nov.08)

► National Quality Award, company recognized as a reference on global management (National Quality Foundation – Oct.08)

– Finalist company category

► Value Creation Prize for Shareholders in the Sector, in the category Eletric Energy (Abrasca - Associação Brasileira das Companhias Abertas – Aug.08)

► Most acknowledged company on sustainability among companies from the public sector (Revista Imprensa – May.08)

2008 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.