InstitutionalJanuary, 2010

2

7 million clients6 thousand AES People

AES Brasil Group

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Discos

Gencos

Market Share... with a 2008 result:

R$ 3.2 billion (Ebitda)R$ 1.7 billion (net income)

Investments 1998-2008:

R$ 5 billion after privatization

DiscoTrading Co. Telecom

Genco

3

Shareholding structure

C 99.99 %T 99.99 %

C 99.99%T 99.99%

AESCom RJ

C = Common SharesP = Preferred Shares

T = Total

C 76.46%P 7.43%T 34.80%

AESEletropaulo

AESTietê

Cia. Brasiliana de Energia

AES Corp BNDES

C 50.00% - 1 shareC 50.00% + 1 shareP 0.00%T 46.15%

C 71.35%P 32.34%T 52.55%

AES EPTelecom

C 98.26%T 98.26%

AESSul

T 99.76%

AESUruguaiana

AESInfoenergy

C 100.00%T 100.00%

4

24.2% 28.3% 39.5%

16.1% 19.2% 56.2%

7.9%

8.0%

Free FloatFederal

Government or Eletrobras1

Shareholding composition

1 – Federal Government and Eletrobrás correspond to AES Eletropaulo and AES Tietê, respectively

5

Energy sector agents in Brazil

Ministry of Mines and Energy (MME)

National Council of Energy Policy (CNPE)

Electric Energy Commercialization Chamber (CCEE)Pricing and clearing of

energy transactions

Electricity Sector Surveillance

Committee (CMSE)

Brazilian Electricity Regulatory Agency

(ANEEL)

Energy Research Enterprise (EPE)

Generation companies

Transmission companies

Distribution companies

Trading companies

System Operator (ONS)

Generator resources scheduling and dispatch

(Monitors energy supply) (Ruling, Inspection & Auditing, Monitoring, and Mediation)

(Generation & Transmission Planning)

(Set Guidelines and Policies)

(Formulates Policies)

6

Energy sector in Brazil(Contracting Environment)

Trading Companies

Free Clients

Spot Market

• Main auctions (reverse auctions):

– New Energy (A-5): Delivery in 5 years, 15-30

years regulated PPA

– 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

Regulated Market Free Market

Distribution Companies

PPAs1

Trading Companies

Free Clients

Distribution Companies

Auctions

1 – Power Purchase Agreement

7

Tariff Reset and Readjustment

• Tariff Reset is applied each 3 to 5 years − AES Eletropaulo: each 4 years

− AES Sul: each 5 years

− Parcel A costs pass trough the tariff

− Parcel B costs are set by ANEEL

• Tariff Readjustment: annually − Parcel A costs pass trough the tariff

− Parcel B cost are adjusted by IGPM +/- X(1) Factor

Energy

PurchaseTransmission

Sector Charges

Investment Remuneration

Depreciation

Reference Company(PMSO)

RemunerationAssetBase

X Depreciation

X WACC

Regulatory Ebitda

Parcel A Non-Manageable Costs

Parcel B Manageable Costs

• Remuneration Asset Base:

– Applicable investments used to calculate the Investment Remuneration (applying WACC) and Depreciation

• Reference Company:– Efficient cost structure, determined by

ANEEL (National Electricity Agency)

• Parcel A Costs− Non-manageable costs that totally

pass- through to the tariff

− Losses reduction improve the pass-through effectiveness

(1) X Factor: index that capture productivity gains

Discos regulatory methodology(Tariff Reset and Readjustment)

9

AES Eletropaulo overview

• Largest electricity distribution company in Latin America

• Serving 24 municipalities in the São Paulo Metropolitan area

• Concession area with the highest GDP in Brazil:

– 17.1% of the Brazilian GDP and 50.3% of São Paulo’s state GDP

• 46 thousand kilometers of lines

• 4,526 km2 of concession area

• 1.1 million electricity poles

• 4,143 employees

• 5.9 million of consumption units

• Total distributed volume of 41 TWh in 2008

Concession Area

São Paulo Metropolitan Area

Regional West

Regional East

Regional South Regional ABC

Regional North

Note – Data as of Sept. 2009, except GDP which is 2006

10

Ranking¹ for energy distributors

Net Revenue

2007 2008

Ebitda

1st

2nd

1st

1st

1 – Source: ABRADEE (Brazilian Association of Energy Distributors); research among 48 energy distributors in Brazil.

Net Revenue - R$ million

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

AE

SE

LETR

OP

AU

LO

CE

MIG

LIG

HT

CP

FL P

AU

LIS

TA

CO

PE

L

CO

ELB

A

CE

LES

C

ELE

KTR

O

AM

PLA

CE

LPE

BA

ND

EIR

AN

TE

CP

FLP

IRA

TIN

ING

A

CO

ELC

E

CE

LG

Ebitda - R$ million

200

400

600

800

1.000

1.200

1.400

1.600

1.800

AE

SE

LETR

OP

AU

LO

CE

MIG

LIG

HT

CO

ELB

A

CP

FL P

AU

LIS

TA

CO

PE

L

ELE

KTR

O

AM

PLA

CE

LPE

CO

ELC

E

AM

AZO

NA

S

CP

FLP

IRA

TIN

ING

A

CE

MA

R

RG

E

11

Consumption evolution

Free Clients

Commercial

Total Market - (GWh)1 9M09 Consumption Share - (GWh)1

Residential

Others

Industrial

Free Clients

2006 2007 2008

410

38,18339,932

41,243

Captive market

31,656

6,527

32,577

7,355

33,860

7,383

+ 8%

25,105

5,625

25,353

5,024

30,730 30,377

9M08 9M09

37%

14%

17%

26%

6%

1 – Own consumption not considered

CAGR 2006-08

+7%

+2%

+6%

+0%

+2%

121 – Own consumption not considered

Residential - (GWh)

1Q09

3,494

2Q09

3,742

3Q09

3,978

9M08

10,708

11,214

9M09

Commercial - (GWh)

Industrial - (GWh)

1Q09

1,327

2Q09

1,465

3Q09

1,546

9M08

4,8784,337

9M09

1Q09

2,657

2Q09

2,625

3Q09

2,567

9M08

7,603

7,850

9M09

Captive Market¹ - (GWh)

1Q09

8,118

2Q09

8,493

3Q09

8,742

9M08

25,10425,353

9M09

+ 5% + 3%

+ 1%- 11%

Most important consumption classes

13

Investments amounted up toR$ 324 million in 9M09

Paid by customers

Investments Breakdown – R$ million Investments 9M09

Capex

Maintenance

IT

Others

27%

45%

22%

16%

4%4%

8%

2006 2007 2008 2009e

301364

410

69378

433457

77

47

468

55

523

269

305

36

9M08

298

324

26

9M09

Customer Service and System Expansion

Customer Financed

Loss Recovery

14

SAIDI - System Average Interruption Duration Index

3rd 1st 1st3rd

SAIDI & SAIFI

1 – Last twelve months

Source: ABRADEE, ANEEL e AES Eletropaulo

9.208.907.87

2006 2007 2008

11.81 11.34 10.92

11.01

9M09¹ 2006 2007 2008

5.64 5.205.52

8.618.49 8.41

5.78

9M09¹

3rd 5th

SAIFI - System Average Interruption Frequency Index

SAIDI (hours) SAIFI (times)SAIDI Aneel Target SAIFI Aneel Target

ABRADEE ranking position between 28 distributors with over 500 thousand consumers

15

Operational indexes

• Disconnections and Reconnection – Monthly Average (9M08 X

9M09)

– Disconnections: increase from 233 thousand to 733 thousand

– Reconnection: increase from 248 thousand to 488 thousand

• Past due bill credit report (9M09 average): 190 thousand

• Fraud and Illegal Connections (9M09)

– 271,000 inspections e 32,000 frauds detected

– 57,000 illegal connections regularized

1 – Last 12 months 2 - Current Technical Losses used retroactively as reference

97.899.599.1

200820072006

5.5 5.1

6.5 6.5

11.612.0

5.0

6.5

11.5

- 1.3 b.p. - 0.4 b.p.

101.497.7

9M0919M081

5.2

6.5

11.6

5.3

6.5

11.8

Commercial Losses Technical Losses²200820072006 9M099M08

Collection Rate – % over gross revenue Losses – %

16

Regulatory WACC (%)

2007 20082006

1,7661,6961,566

17.115.1

20072003

EMBI+ BR 4.63% 2.21%

Selic target 16.50% 11.25%

2007 2008

7,5297,193

2006

6,852

9M08 9M09

5,8555,540

9M08 9M09

1,1431,140

Net revenue of R$ 5.9 billion in 9M09

Net Revenue – R$ million Ebitda – R$ million

+ 10%

171 – Gross amount 2 – Considered 1st semester data

2007 2008

1,027

713

2006

373

+ 175%

9M08 9M09

538496

34.9%

100.3% 101.5%

3.2%

14.4% 20.3%

130

715

1,043

Dividends Pay-out Yield2 PNB

2007 20082006

323

9M09

Net income of R$ 538 million in 9M09

Net Income – R$ million Dividend payout1 – R$ million

• 25% of minimum pay-out according to bylaw• Practice on semi-annual basis of maximum permitted

dividend distribution, since 2006 results• Yield2 of 6.3% and pay-out² of 106.7%

18

R$ 663 million paid as dividends in 2009

3Q08 4Q08 1Q09

Initial Cash 1,454 1,373 1,536

613 491 301

(107) (126) (104)

(107) (37) (113)

(21) (40) (184)

(32) (46) (58)

(68) (80) (119)

(359) -

(81) 162 (278)

Final Cash 1,373 1,536 1,258

Managerial Cash Flow – R$ million

-

2Q09

1,258

448

(113)

(45)

(54)

(56)

(83)

(269)

989

(366)

3Q09

989

798

(116)

(98)

(35)

(53)

(45)

155

1,143

(297)

Operating Cash Flow

Investments

Net Financial Expenses

Net Amortizations

CESP Foundation

Income Tax

Dividends

Free Cash Flow

19

Debt profile

1 - Last 12 months of adjusted Ebitda 2 – Exchange rate in 09/30/2009 – US$ 1.00 = R$ 1.7781 3 - Brazil’s Interbank Interest Rate

Net Debt Amortization Schedule – R$ million

3.73.0 2.5

2.1x1.3x 1.2x

2007 20082006

2.7

9M09

1.4x

10

2009

341

524250 250 250

50 125375

78

62 66 7075 80

1,532

2010 2011 2012 2013 2014 2015 2016-2028

Local Currency (w/out Pension Fund)

Net Debt / Adjusted Ebitda1

Net Debt (R$ billion) Pension Fund Foreign Currency2

• September, 2009:– Average debt cost is 116.5% of CDI3 per year which means an effective rate of 13.9% per year

– Average debt maturity is 7.3 years

20

Capital market

2006 2007 2008

7,508

26,06625,677

AES Eletropaulo1 X Ibovespa X IEE

2009

21,960

• A) 02/25/2009 – Finsocial and São Paulo municipality agreement

• B) 04/16/2009 - Public Consultation of Tariff Reset

• C) 06/16/2009 – Conclusion of Second Periodic Tariff Reset

Average Daily Volume3 - R$ thousand

IBOVIEEELPL6

Dec-082 Dec-09

60%

83%

59%

Mar-09 Jun-09

2009

AA

BBCC

Sep-09

80

120

140

160

180

100

1 – Shares were adjusted by declared dividend of the period under analysis 2 – Data Base: 12/30/08 = 100 3 – Preferred shares Class B

22

AES Tietê overview

• 30 year concession, expires in 2029, renewable for

another 30 years

• 10 hydroelectric plants in the State of São Paulo at Tietê,

Pardo and Mogi Guaçu rivers

• Installed capacity of 2,657 MW, with assured energy1 of

1,280 MW

• 100% of assured energy contracted with AES

Eletropaulo until the end of 2015

• 310 employees

Concession Area

Água Vermelha (1,396 MW)

Nova Avanhandava (347 MW)

Ibitinga (132 MW)

Barra Bonita (141 MW)

Promissão (264 MW)

Bariri (143 MW) Mogi-Guaçu (7 MW)

Euclides da Cunha (109 MW)

Caconde (80 MW)

Limoeiro (32 MW)

Name and Installed Capacity of AES Tietê’s Plants:

1 - Amount of energy allowed to be long term contracted

Atlantic Ocean

23

Energy Generation – MW average

Generation – MW average Generation / Assured Energy1

2006 2007 2008

1,4241,543 1,510

Billed Energy – GWh

AES Eletropaulo MRE2 Spot Market

13,421

1,740

11,108

13,148330

1,680

11,138

2006 2007 2008

12,774

536

1,130

11,108

573

Operational Performance

112%121% 118%

129%

1,646

9M09 9M08 9M09

10,336

327

1,663

8,346 8,550

10,728

607

1,571

September ’09 Prices (R$ / MWh)

AES Eletropaulo 152.00MRE 8.18

Spot (9M09 avg.) 39.68

1 - Amount of energy allowed to be long term contracted 2 - Energy Reallocation Mechanism

24

Investments – R$ million 9M09 Investments

New SHPP’s1

Investments

1- Small Hydro Power Plant Jaguari Mirim and Piabanha

Investments

2006 2007 2008 2009(e)

4912

847

51

5963

3935

43

20

9M09

14

22

33

11

33%

3%

19%45%

Equip. and Maint.

EnvironmentIT

New SHPPs

• 9M09 x 9M08: higher reforestation expending, due to Carbon Credit Project, partially offset by lower investments on Piabanha SHPPs

25

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

• Popular law action against Federal Government, Aneel, AES Tietê, and Duke

– Status: Defense filed on first instance in October 2008 by AES Tietê. In December, 2008, the author replied AES

Tietê defense and, since this, both parties are waiting judge movement about the necessity of proves production

• 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

26

Concluded(PPA1)Concluded(PPA1)

1 - Power Purchase Agreement 2 - Small Hydro Power Plant

AES Tietê has been seeking opportunities to increase its installed capacity to comply with the 15% increase requirement in the State of São Paulo

In ProgressIn Progress

Under EvaluationUnder Evaluation

• 6MW of co-generation by biomass contracted for 15 years (initiating in 2010)

• 7 MW of hydropower generation through SHPPs2 in Jaguari Mirim river– SHPP São José (4 MW) is expected to begin the operation in 1H10– SHPP São Joaquim (3 MW) is expected to begin the operation in 1H10

Projectsexpansion requirement

• 500 MW of natural gas fired thermo plant– In stage of defining plant location

• 32 MW of hydropower generation through SHPPs under technical and economic viability study

27

Net Revenue – R$ million Ebitda – R$ million

2007 2008

1,6211,464

2006

1,387

+ 17%

1,254

1,0991,097

+ 14%

2007 20082006

Net revenue of R$ 1.3 billion in 9M09

1,1861,277

9M08 9M09 9M08 9M09

9361,028

28

Net Income – R$ million Dividend Payout1 – R$ million

1 - Gross amount 2 - Average Weighted Price during the Period

100 % 100 % 100 %

12% 10% 12%

614 609

692

Dividends Pay-out Yield PN2

2007 20082006

609692

614

+ 13%

2007 20082006

• 25% of minimum pay-out according to bylaw • Practice on quarterly basis of maximum permitted

dividend distribution, since 2006 results• Yield2 of 9.4% and pay-out of 100% in 9M09

Sustainable profitability and dividend payment

9M08 9M09

495

636

9M09

636

29

Managerial Cash Flow – R$ million

Strong cash flow

Initial CashOperating Cash FlowInvestmentsNet Financial ExpensesNet AmortizationIncome TaxDividends and IoEFree Cash FlowFinal Cash – Parent CompanyFinal Cash of Subs. And Assoc. CompFinal Cash

3Q08 4Q08 1Q09

812673 783 836332340 337 297(8)(14) (22) (9)

(13)(13) (7) (6)(55)(50) (52) (53)(20)(19) (17) (252)

(409)(134) (188) 0(173)110 53 (24)

639783 836 81225 5 2

641788 840 814

2Q09

639316(14)(15)(58)(19)

(199)12

6511

652

3Q09

30

Net Debt

2006 2007 2008

0.7

0.4

0.7

0.3x0.6x0.6x

9M09

0.4

0.3x • Eletrobras Debt

– Balance: R$ 1,029 million

– Monthly amortization

– Maturity: May 15, 2013

– Interest of 10% p.a. and monetary adjustment of IGP-M

Net Debt (R$ billion)

Net Debt / Ebitda

Debt

31

Daily Average Volume - R$ thousand

Capital market

Preferred(GETI4)

Common(GETI3)

5,760

9,067

2006 2007 2008 2009

2,1001,572

2,692

10,181

8,160

5,468

8,081

3,5664,188

5,531

AES Tietê1 X Ibovespa X IEE

IBOV IEEGETI4

70

100

130

160

190

Dec-08 Mar-09 Jun-09 Sep-09

+ 41%

+ 59%

+ 83%

1 – Shares were adjusted by declared dividend of the period under analysis 2 – Data Base: 12/30/08 = 100

Dec-09

2009

Social Responsibility andEnvironmental Actions

33

Social responsibility

• Launched in December,2008;

• Objective: to get the co-workers committed to the transformation of low income communities and development of non-governmental institutions;

• 1,100 volunteers

Volunteering Program

Acting to Transform

Enterprising in the Community

\distributing Energy of

Good

Specific social mobilization or emergency campaign.

Winter clothes, Christmas campaign, among others.

Opportunities for volunteering in social organizations, which are

partners of AES Brazil

Co-workers can enroll in volunteer activities available at AES Brazil volunteering portal

since September/09www.energiadobem.com.br

Acknowledgement and support of projects for the

development of social organizations.

Volunteers may submit projects to help other

organizations develop. Launch scheduled for January/10.

34

• 302 benefited children between 1 and 6 years old

• Own investments amounting R$ 1.5 million in 2009

• Units: Santo Amaro and Guarapiranga

• Over 6 thousand children, teenagers,and adults have been benefited

• Own and incentive investments: approximately R$ 14 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

• 5 units operating and another one to be launched in the municipality of Osasco in November, 2009

“Casa da Cultura e Cidadania” Project

“Centros Educacionais Infantis Luz e Lápis” - Project

Social responsibility

35

• Carbon Credit– Clean Development Methodology (CDM) approved by United Nations Framework Convention on Climate Change

(UNFCCC), allows up to 10,000 hectare reforestation on reservoir borders– AES Tietê is seeking for good business opportunities, and has not transacted credits so far

• Reforestation– One million of seedlings production in seed-plot of Promissão hydroelectric power plant– Donation of seedlings to the society, rural producers, city halls, and non-governmental organizations

• Fish Farming– Reproduction of 2.5 million fishes in 10 reservoirs of AES Tiete's plants

• Archeological Park– Community involvement into archeological artifacts conservation and better understanding of its scientific

importance– Social access to the archeological history of the reservoir area

Environmental actions

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.

Contacts:ri.eletropaulo@aes.com

ri.aestiete@aes.com

+ 55 11 2195 7048