InstitutionalMarch, 2010

2

7 million clients6 thousand AES People

AES Brasil Group

85.4%

14.6%

Others

AES Brasil

97.0%

3.0%

Discos

Gencos

Market Share ... with a 2009 result:

R$ 3.2 billion (Ebitda)R$ 1.9 billion (net income)

Investments 1998-2009:

R$ 5.8 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 shareP 100%T 53.85%

C 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 Purchase

TransmissionSector 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

•

4,360 employees

•

5.9 million of consumption units

•

Total distributed volume of 41 TWh in 2009

Concession Area

São Paulo Metropolitan Area

Regional West

Regional East

Regional South Regional ABC

Regional North

Note –

Data as of Dec. 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

AES

ELET

RO

PAU

LO

CEM

IG

LIG

HT

CPF

L PA

ULI

STA

CO

PEL

CO

ELB

A

CEL

ESC

ELEK

TRO

AMPL

A

CEL

PE

BAN

DEI

RAN

TE

CPF

LPI

RAT

ININ

GA

CO

ELC

E

CEL

G

Ebitda - R$ million

200

400

600

800

1.000

1.200

1.400

1.600

1.800

AES

ELET

RO

PAU

LO

CEM

IG

LIG

HT

CO

ELB

A

CPF

L PA

ULI

STA

CO

PEL

ELEK

TRO

AMPL

A

CEL

PE

CO

ELC

E

AMAZ

ON

AS

CPF

LPI

RAT

ININ

GA

CEM

AR

RG

E

11

Consumption evolution

Free Clients

Commercial

Total Market - (GWh)1 2009 Consumption Share - (GWh)1

Residential

Others

Industrial

Free Clients Captive market

1 –

Own consumption not considered

2006 2007 2008

410

38,18339,932

41,243

31,656

6,527

32,577

7,355

33,860

7,383

+ 8%

34,436

6,832

41,269

2009

36%

15%

17%

26%

6%

121 –

Own consumption not considered

Residential - (GWh) Commercial - (GWh)

Industrial - (GWh) Captive Market¹ - (GWh)

Most important consumption classes

1Q09

3,494

2Q09

3,742

3Q09

3,978

2008

14,427

15,015

2009 1Q09

2,657

2Q09

2,625

3Q09

2,567

2008

10,30110,752

20094Q09

3,801

4Q09

2,902

+4,1% +4.4%

1Q09

1,327

2Q09

1,465

3Q09

1,546

2008

6,5596,032

2009 1Q09

8,118

2Q09

8,493

3Q09

8,742

2008

33,86034,436

20094Q09

1,695

4Q09

9,084

- 8.0 % +1.7%

13

Investments amounted up to R$ 516 million in 2009

Paid by customers

Investments Breakdown – R$ million Investments 2009

Capex

2007 2008 2009

364410

69

433457

47

478

37516

2010(e)

637

54

691

44%

23%

15%

5%6%

7%

Maintenance

IT

Others

Customer Service and System Expansion

Customer Financed

Loss Recovery

14

SAIDI - System Average Interruption Duration Index

SAIDI & SAIFI

Source: ABRADEE, ANEEL e AES Eletropaulo

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

7.87

2006

8.90

2007

9.20

2008

11.81 11.34 10.92

3o3o 5o

11.86

2009

10.09

8.61 8.49 8.41

3o 1o 1o

2007

5.64

2008

5.20

2006

5.52

2009

6.17

7.87

15

Operational indexes

•

Disconnections and Reconnection – Monthly Average (2008 X 2009)

–

Disconnections: increase from 33 thousand to 80 thousand

–

Reconnection: increase from 32 thousand to 56 thousand

•

Past due bill credit report (2009 average): 190 thousand

•

Fraud and Illegal Connections (2009)

–

336,000 inspections e 41,800 frauds detected

–

80,200 illegal connections regularized

1 -

Current Technical Losses used retroactively as reference

Commercial Losses Technical Losses¹

Collection Rate – % over gross revenue Losses – %

97.899.599.1

200820072006

5.5 5.1

6.5 6.5

11.612.0

5.0

6.5

11.5

2.0 p.p.- 0.2 p.p.

101.1

2009

6.5

5.3

11.8

200820072006 2009

16

Regulatory WACC (%)

20072003

EMBI+ BR 4.63% 2.21%

Selic target 16.50% 11.25%

Net revenue of R$ 8.0 billion in 2009

Net Revenue – R$ million Ebitda – R$ million

2007 2008

7,5297,193

2006

6,852

+ 17.5%

2009

8,050

2007 20082006

1,766 1,6961,566

17.115.1

2009

1,573

171 –

Gross amount

34.9%

100.3% 101.5%

3.2%

14.4% 20.3%

130

715

1,043

Dividends Pay-out Yield PNB

2007 20082006 2009

Net income of R$ 1,1 billion in 2009

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

2007 2008

1,027

713

2006

373

+ 185%

2009

1,063

1,080

20.4%

101.5%

18

R$ 993 million paid as dividends in 2009

Managerial Cash Flow – R$ million

2008

1,334

2,019

(374)

(285)

(94)

(192)

(295)

(577)

201

1,536

2009

1,536

2,332

(482)

(291)

(320)

(224)

(309)

(286)

1,249

(993)

Initial Cash

Operating Cash Flow

Investments

Net Financial Expenses

Net Amortizations

CESP Foundation

Income Tax

Dividends

Free Cash Flow

Final Cash

19

Debt profile

1 -

FCesp

= Pension Fund

2

-

Brazil’s Interbank Interest Rate

Amortization Schedule – R$ million

•

December, 2009:–

Average debt cost is 87.1% of CDI²

per year which means an effective rate of 8.7% per year–

Average debt maturity is 10.4 years

2010 2011 2012 2013 2014 2015 2018-202820172016

524250 275 278

108 183354

85

1,360

65

609

311 340 347182

262

1,714

233

293

377

61 6974 79

84

89144

Local Currency (ex FCesp) FCesp1

Net Debt

Net Debt (R$ billion)

Net Debt / EBITDA Adjusted with FCesp

2006

3.7

2007

3.0

2008

2.5

2009

3.2

1.8x 1.8x

1.5x

1.8x

20

Capital market

AES Eletropaulo1 X Ibovespa X IEE Average Daily Volume3 - R$ thousand

2006 2007 2008

7,508

26,066 25,677

2009

21,960

IBOVIEEELPL6Dec-082 Dec-09

60%

83%

59%

Mar-09 Jun-09

2009

AA

BBCC

Sep-09

80

120

140

160

180

100

1 –

Preferred shares class B adjusted by the dividends declared in the related period 2 –

Index: 12/30/08 = 100 3 –

Preferred shares class B

•

A) 02/25/2009 –

Finsocial

and São Paulo municipality agreement

•

B) 04/16/2009 –

Public Consultation of Tariff Reset

•

C) 06/16/2009 –

Second Periodic Tariff Reset Revision

•

D) 10/18/2009 – Parcel A discussion on media

DD

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 physical guarantee1

of 1,280 MW

•

100% of physical guarantee contracted with AES

Eletropaulo until the end of 2015

•

315 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 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

5361,130

11,108

573

Operational Performance

2010 Prices (R$ / MWh)

AES Eletropaulo 152.00MRE 8.51Spot (2009 avg.) 38.74

1 -

Generated energy divided by the amount of period hours

2 -

Energy Reallocation Mechanism

Generation – MW Avg. Generation / Physical Guarantee1

130%

1,4241,543 1,510

112%

121% 118%

1,662

2006 2007 2008 2009 2009

11,108

2,372

14,436

956

24

Investments – R$ million 2009 Investments

1-

Small Hydro Power Plants Jaguari

Mirim and Piabanha

Investments

New SHPPs1

Investments

2007 2008

8

5159

3943

20

2009

13

57

44

2010(e)

67

168

Equip. and Maint.

EnvironmentIT

New SHPPs

54%

24%

20%

2%

2006

12

47

35

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 2H10–

SHPP São Joaquim

(3 MW) is expected to begin the operation in 2H10

Projects - expansion requirement

•

500 MW of natural gas fired thermo plant–

Location has been defined–

Initiation of the environmental licensing process, with entry on

CETESB in March, 2010

•

32 MW of hydropower generation through SHPPs

under technical and economic viability study

27

Net Revenue – R$ million Ebitda – R$ million

Net revenue of R$ 1.7 billion in 2009

+ 20% + 15%

2007 2008

1,6051,449

2006

1,387

2009

1,670

1,254

1,0991,097

2007 20082006

1,260

2009

28

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

1

-

Gross amount

100 % 100 % 100 %

12% 10% 12%

614 609692

Dividends Pay-out Yield PN

+ 27%

2007 20082006

•

25% of minimum pay-out according to bylaw •

Practice on quarterly basis of maximum permitted dividend distribution, since 2006 results

Sustainable profitability and dividend payment

2009

780

11%

100 %

614 609692

2007 20082006 2009

780

29

Managerial Cash Flow – R$ million

Strong cash flow

2008

6341.219

(52)

(49)

(194)

(67)

(656)

202

836

5

840

2009

8361.241

(55)

(48)

(224)

(308)

(829)

(223)

613

2

615

Initial Cash

Operating Cash Flow

Investments

Net Financial Expenses

Net Amortization

Income Tax

Dividends and Interest on Equity

Free Cash Flow

Final Cash – Parent Company

Final Cash of Subs. And Assoc. Comp.

Final Cash

30

Net Debt

•

Eletrobras Debt

–

Balance: R$ 969 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

2005 2006 2007 2008 2009

0.40.70.7

0.40.7

0.3x0.3x0.6x0.6x0.7x

31

Daily Average Volume - R$ thousand

Capital market

Preferred(GETI4)

Common(GETI3)

5,760

9,067

2006 2007 2008 2009

2,1011,5722,692

10,187

8,160

5,468

8,086

3,5664,188

5,531

AES Tietê1 X Ibovespa X IEE

IBOV IEEGETI4

1 –

Shares were adjusted by declared dividend of the period under analysis

2 –

Data Base: 12/30/08 = 100

20092

+ 83%

+ 59%

+ 41%

7090

110130150

170190

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

Social Responsibility and

Environmental 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;

•

1,137 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 5.2 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

•

6 units operating

“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