1

InstitutionalJanuary, 2012

2

AES Brasil Group

• Presence in Brazil since 1997

• Comprised of four companies in the sectors ofenergy generation and distribution

• 7.4 thousand AES Brasil People

• Investments 1998-2010: R$ 6.9 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 practice of dividend distributionsince 2006:

– AES Tietê: 100% of net income on quarterlybasis

– AES Eletropaulo: distribution above theminimum required (25% of net income) onsemi-annual basis

3

(AES Eletropaulo) (AES Sul)

(AES Eletropaulo)

(AES Eletropaulo)

(AES Brasil)

(AES Tietê)

(AES Tietê)

(AES Eletropaulo)

(AES Tietê)

(AES Tietê)(AES Eletropaulo)

(AES Brasil)

AES Brasil widely recognized in 2009-2011

Quality and safety Management excellence Environmental concern

(AES Tietê) (AES Eletropaulo)

(AES Tietê)

4

AESInfoenergy

AESUruguaiana

AESEletropaulo

AESTietê

AES Corp BNDES

C = Common SharesP = Preferred Shares

T = Total

Shareholding Structure

C 99.99%T 99.99%

C 76.45%P 7.38%T 34.87%

Cia. Brasiliana de Energia

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%

C 99.00%T 99.00%

AES Sul

T 99.70%

5

24.2% 28.3% 39.5% 8.0%

8.5%56.2%19.2%16.1%

Others²Free Float¹ ¹

1 - Parent companies, AES Corp and BNDES, have equal voting capital on the Companies: 38.2% on AES Eletropaulo and 35.7% on AES Tietê 2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively3 - Base: 09/30/2011. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê

R$ 8.5 bi

R$ 4.8 bi

Market Cap³

Listed Companies Shareholding Composition

6CEMIG AES BRASIL NEOENERGIA CPFL TRACTEBEL COPEL EDP LIGHT DUKE CESP

2.3 2.2

1.81.6

1.21.0

0.6 0.6

0.20.1

AES Brasil is the second largest group in electric sectorEbitda1 – 2010 (R$ Billion)

Net Income1 – 2010 (R$ Billion)

1 – excluding Eletrobrás Source: Companies’ financial reports

CEMIG AES BRASIL CPFL NEOENERGIA TRACTEBEL CESP EDP LIGHT COPEL DUKE

4.54.2

3.43.0 2.6

2.0 1.6 1.6 1.5

0.6

71- Sources: ANEEL – BIG (January, 2012) and Companies websites 2- Source: Merrill Lynch3 – Eletrobrás, totaling 35%

³

AES Tietê is the 2nd largest among

private generation companies and 10th

largest overall

Approximately 78% of country’s

generation installed capacity is state-

owned2

There are three mega hydropower plants

under construction in the North region of

Brazil with 18 GW in installed capacity

– Santo Antonio and Jirau (Madeira River): 7 GW

– Belo Monte (Xingu River): 11 GW

Total Installed Capacity: 117 GW

Main privately held Companies

³

³

³

³

³

³

AES Tietê is an important player among private energy generators

Generation Installed Capacity (MW) - 20121

TRACTEBEL 6,1%

AES TIETÊ 2,3%

CPFL2,3%

DUKE1,9%

EDP1,6%

NEOENERGIA1,2%

ENDESA0,8%

LIGHT0,8%

CHESF 9%

FURNAS 8%

ELETRONORTE 8%

ITAIPU 6%

ELETRONUCLEAR3%

CGTEE1%

ELETROSUL0,5%

CESP 6%

CEMIG6%

PETROBRÁS 5%

COPEL4%

DEMAIS26%

8

AES Brasil is the largest distribution group in Brazil

Consumption (GWh) - 2010

Consumers – Dec/2010

• 63 distribution companies in Brazildistributing 419 TWh

• AES Brasil is the largest electricitydistribution group in Brazil:

– AES Eletropaulo: 43 TWh distributed,

representing 10.3% of the Brazilian

market

– AES Sul: 9 TWh distributed,

representing 2.2% of the Brazilian

market

Distribution companies’ operations arerestricted to their concession areas

Acquisitions must be only performed bythe holdings of economic groups

13%

12%

10%

7%6%6%

6%

40%

12%

12%

12%

16%7%7%

5%

30%

A

AES Brasil

CPFL Energia

Cemig

Neo Energia

Copel

Light

EDP

Outros

Energy Sector in Brazil

¹ Interconected National System

² Small Hydro Power Plants Sources: EPE, Aneel, ONS and Merrill Lynch

• 13 groups controlling 76% of total installed capacity

• 22% private sector

• 1,862 power plants

• 115 GW of installed capacity

• 73% hydroelectric

• 17% thermoelectric

• 5% biomass

• 4% SHPP

• 1% Wind

• Contracting environment –free and regulated markets

• 68 companies

• 68% private sector

• High voltage transmission

(>230 kV)

• 98.648 km in extension

lines (SIN)¹

• Regulated public service

with free access

• Regulated tariff (annually

adjusted by inflation)

• 63 companies

• 415 TWh of energy

distributed in 2010

• 68 million consumers

• 67% private sector

• Annual tariff adjustment

• Tariff reset every four or

five years

• Regulated public service

• Regulated contracting

environment

• Consumption of 105 TWh

(25% of Brazilian total market)

• Conventional sources: above 3000 kW

• Alternative sources: between 500 kW e 3000 kW

• Large consumers can purchase energy directly from generators

• Free contracting environment

GenerationTransmissionDistributionFree Clients

Energy Sector in Brazil: business segments

10

11

Distribution CompaniesTrading

Companies

Distribution Companies

Free Clients

Auctions

Energy sector in Brazil:contracting environment

Regulated Market Free Market

Spot Market PPAs1

1 – Power Purchase Agreement

• Main auctions (reverse auctions):

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

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

Trading Companies

Free Clients

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

349 369 380 376408

423444

469493

515

12

4.0% p.a.

5.0% p.a.

EPE’s1 Assumptions:

• Latest EPE’s estimates considers aneconomic activity slowdown in Brazil(industrial stagnation and higherinflation).

• For the next years, the good performanceof domestic market and the perspectivesof higher investments are factorsindicating that the Brazilian economy willrecover the growth path observed beforethe global crisis.

• Brazil will also benefit from the growth ofemerging markets, with impact onexports of primary products.

3.6%

Macroeconomic Scenario

Brazilian Consumption Evolution (TWh)

Energy sector in Brazil:demand perspectives

1 - Source: EPE (Energetic Research Company) / ONS (National System Operator) – Second Review – september/11

2004-2008 2010 2011 2012-2015

3.6 7.2 4.0 5.0

GDP - Annual growth (%)

Total installed capacity is expected to reach 171 GW by 2020

Brazilian energy matrix will present higher diversification, but in the next 10 years hydropower plants willcontinue to prevail

13

Hydro: 73%

SHPP: 4%

Natural gas: 8%

Biomass: 5%

Oil: 3%

Nuclear: 2%

Coal: 2%Diesel: 1%Wind: 1%Steam: 1%

Others: 10% Hydro: 67%

SHPP: 4%Natural gas: 7%

Biomass: 5%

Oil: 5%

Nuclear: 2%Coal: 2%Diesel: 1%

Wind: 7%

Steam: 0%

Others: 17%

1- Source: EPE (Energetic Research Company), Ten-year Energy Plan 2020, May/2011 2 - Small Hydro Power Plant

2020: 171 GW2011: 115 GW

2

2

Energy sector in Brazil:supply perspectives

Installed Energy Capacity in Brazil1

14

Regulatory Opex

(PMSO)

Investment Remuneration

Depreciation

Energy Purchase

TransmissionSector Charges

Tariff Reset and Readjustment

• Tariff Reset is applied each 4 years for AES Eletropaulo − Base date: Jul/2011− 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

RemunerationAsset Base

X Depreciation

X WACC

Regulatory Ebitda

Parcel A - Non-Manageable Costs

Parcel B - Manageable Costs

• Remuneration Asset Base:– Prudent investments used to calculate

the investment remuneration (applying WACC) and depreciation

• Regulatory Opex:– Efficient cost structure, determined by

ANEEL (National Electricity Agency)

• Parcel A Costs− Non-manageable costs that are totally

passed through to the tariff− Losses reduction improve the pass-

through effectiveness

1 – X Factor: index that captures productivity gains

Energy sector in Brazil:regulatory methodology

15

3rd Cycle of Tariff Reset – X Factor

Energy sector in Brazil:regulatory methodology

X FACTOR = Pd Q T+ +

Distribution productivity

Quality of service Operational expenses trajectory

To capture productivity gains with distribution

To stimulate the improvement of the

service quality

To implement operational expenses trajectory during

the tariff cycle

Defined at tariff reset, considering market

growth and variation of consumer units

since last reset

Defined at each tariff readjustement, according to the

variation of SAIDI and SAIFI and comparative performance of discos

in the previous year

Defined at tariff reset, considering the limits of expenses established by reference company and

benchmarking methodologies

DEFINITION

OBJECTIVE

APLICATION

17

AES Tietê Overview

17 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 2,659 MW, with physical guarantee1

of 1,280 MW average

Almost all the amount of energy that AES Tietê can sell

in the long term is contracted to AES Eletropaulo until

the end of 2015

AES Tietê can invest in generation, its main activity, and

operate in energy trading

343 employees

Generation facilities

1 - Amount of energy allowed to be long term contracted

Generated energy shows high operational availability

Generated energy (MW avarage1)

1 – Generated energy divided by the amount of hours * Caconde, Limoeiro, Mogi and SHPPs

Generated energy by power plant (MW avarage1)

18

118%

130% 125%

2008 2009 2010 9M10 9M11

1,512

1,6651,599

1,703

1,550

Generation - Mwavg

129%126%

Generation/Physical guarantee

58%

6%5%

4%5%

7%

11%4%

Água Vermelha

Bariri

Barra Bonita

Euclides da Cunha

Ibitinga

Nova Avanhandava

Promissão

Other Power Plants*

2008 2009 2010 9M10 9M11

11,138 11,108 11,108 8,578 8,045

1,680 2,331 1,980

1,554 1,535

331 1,150 1,340

1,135 1,188

117 301

215 346

AES Eletropaulo MRE Spot Market Other bilateral contracts2

1

13,148

14,706 14,729

11,483 11,114

-3%

A significant amount of billed energy and net revenues comes from the bilateral contract with

AES EletropauloEnergy Billed (GWh)

1 – Leap Year 2 – Energy Reallocation Mechanism

Net Revenues (%)

19

AES Eletropaulo

Other bilateral contracts

Spot Market

MRE

94%

3%2%

1%

2009 2010 2011 (e) 9M10 9M11

43 70

151

46

105 13

12

18

7

14

56

82

169

53

119

Investments New SHPPs*

20

Investments (R$ million) 9M11 Investments

Investments in the modernization of Nova Avanhandava, Ibitinga and Caconde

power plants

*Small Hydro Power Plants

+122%

84%

12%4%

Equipment and Modernization

New SHPPs*

IT projects

21

Growth opportunities

Perspectives

• Project features- Combined cycle using natural gas

- Estimated investment of R$ 1.1 billion

- Natural gas consumption: 2.5 million m3/day

- 550 MW of installed capacity

• Next events

• Updates

- Environmental license obtained on October, 20th 2011 (valid for 5 years)

- Gas unavailability for A-5 Energy Auction in 2011

- Obtain installation license- Participate in A-3 Auction expected to be realized in

March 2012- Evaluate energy offering in the free market

(54)2008 2009 2010 9M10 9M11

1,309 1,311

9 1,254 1,255 1,320

1,035 1,048

Recurring Non-recurring

22

Ebitda (R$ million)Net Revenue (R$ million)

Financial highlights*

(*) 2009 and 2010 numbers in IFRS

78% 75% 75% 78% 78%

Ebitda margin

+1%+1%

2008 2009 2010 9M10 9M11

1,605 1,670 1,754 1,334 1,344

IFRS Effect

Practice of total net income distribution on quarterly basis*

Net Income and Dividend Pay-out1 (R$ million)

816 784542

31

28

692 706

737

570 582

23

(74)(36)

(78) (40)

-5%+2%

2008 2009 9M10 9M112010

1 – Gross value(*) 2009 and 2010 numbers in IFRS

Pay -out Yield Pref Recurring Non-recurring

100%110% 117%

12%11% 11%

0.3x 0.3x 0.3x 0.3x 0.4x

2008 2009 2010 9M10 9M11

0.4 0.4 0.4 0.5 0.6

24

Debt profile

Net Debt (R$ billion) Amortization Schedule – Principal (R$ million)

• September, 2011:– Average debt cost in 9M11 was 115% of CDI1 p.a. or 15% p.a.– Average debt maturity of 2.8 years– Net debt: R$ 0.6 billion– Net debt/EBITDA: 0.4x

1 – Brazilian Interbank Interest Rate

Net debt / EBITDA

Net debt

2013 2014 2015

300 300 300

2008 2009 2010 9M11

5,4688,086

9,683 9,458

2,692

2,101

4,2393,370

8,160

10,187

13,922 12,828

Preferred Common

50

70

90

110

Dec-10 Mar-11 Jun-11 Sep-11

AES TIETÊ PF TSR IBOVESPA IEE

+5%+2%-2%

-25%

251 – Index: 12/30/2010 = 100 2 – Total Shareholders’ Return

YTD1

Capital Markets

• Market Cap4: R$ 8.5 billion

• BM&FBovespa: GETI3 (common shares) and GETI4 (preferred shares)

• ADRs negotiated in US OTC Market: AESAY (common shares) and AESYY(preferred shares)

4 – Index: 09/30/11

Daily Avg. Volume (R$ thousand)AES Tietê X Ibovespa X IEE

2 3

3 – Electric Energy Index

27

AES Eletropaulo Overview

Largest electricity distribution company in Latin America

Serving 24 municipalities in the São Paulo Metropolitan area

Concession contract valid until 2028; renewable for another 30

years

Concession area with the highest GDP in Brazil

45 thousand kilometers of lines, 1.2 million electricity poles and

6.1 million consumption units in a concession area of 4,526 km2

Total distributed volume of 43 TWh in 2010

AES Eletropaulo, as a distribution company, can only invest in

assets within its concession area

5,647 employees

Concession Area

28

Consumption Evolution

Total Market1 (GWh) 9M11 Consumption by Class (%)

36%

14%

18%

26%

6%

1 – Net of own consumption

+5%

Brazil AES Eletropaulo

2636

17

28

43

26

14 9

Residential Commercial Industrial Others

¹

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2008 2009 2010 9M10 9M11

33,860 34,436 35,43426,352 27,523

7,383 6,832 7,911

5,846 6,246

41,243 41,26943,345

32,198 33,769

Captive Market Free Clients

29

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

260

220

192 198 198

206 212

217 220 228 228

235

Residential consumption evolution

* *

* Rationing

- Average annual growth (2003 – 2011):

• total residential market: 5.5% y.y.

• consumption per consumer: 2.1% y.y.

- Consumption per consumer is still 9.7% lower than in the period before the rationing

Consumption per consumer (in kWh) – YTD September

- 9.7%

30

Investments amounted R$ 530 million in 9M11

Investments Breakdown (R$ million) Investments 9M11 (R$ million)

+38%

0

100

200

300

400

500

600

700

800

2009 2010 2011(e) 9M10 9M11

478654 715

362513

37

2829

22

16516

682744

383530

Capex Paid by Customers

166

128

125 27

21 16

47

Maitenance

Client Service

System Expansion

Losses Recovery

IT

Paid by the Clients

Others

31

SAIFI - System Average Interruption Frequency Index SAIDI - System Average Interruption Duration Index

SAIDI & SAIFI

8th5th 7th1st7th 3rd

Sources: ANEEL, AES Eletropaulo and ABRADEE

ABRADEE ranking position among the 28 utilities with more than 500 thousand customers

► 2011 SAIDI ANEEL Reference: 8.68 hours ► 2011 SAIFI ANEEL Reference: 6.93 times

2008 2009 2010 9M10 9M11

9.20 11.86 10.68 11.95 10.30

SAIDI (hours)

10.92 10.09

9.32

SAIDI Aneel Reference

2008 2009 2010 9M10 9M11

5.206.17 5.43 6.06 5.42

SAIFI (times)

8.41 7.87

7.39

SAIFI Aneel Reference

From Jul/10 to Jun/11: 12.13%From Jul/09 to Jun/10: 12.32%

32

Losses (%)

1 – Current technical losses used retroactively as a reference

Collection Rate (% over Gross Revenues)

Operational Indexes

2008 2009 2010 9M10 9M11

6.5 6.5 6.5 6.5 6.5

5.1 5.3 4.4 4.5 4.1

11.6 11.810.9 11.0 10.6

2008 2009 2010 9M10 9M11

98.5101.1 102.4 100.3 103.0

Technical Losses ¹ Commercial Losses

ANEEL References:

33

Ebitda (R$ million)Net Revenues (R$ million)

Financial Highlights*

(*) 2009 and 2010 numbers in IFRS

+5%

- 8%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2008 2009 2010 9M10 9M11

7,530

8,7869,697

7,046 7,371

2008 2009 2010 9M10 9M11

1,607 1,491 1,6481,325 1,326

-197

339

245 332 89

87

426

301 58 1,696 1,775

2,413

1,870 1,716

RecurringRegulatory assets and liabilitiesNon-recurring

341 – Gross amount

Net Income and Dividend Payout1 (R$ million)

Practice of dividend distributionon semi-annual basis*

(*) 2009 and 2010 numbers in IFRS

-15%

101.5% 93.4%

115.4%

20.3% 20.4%

28.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Pay-out Yield PN

2008 2009 2010 9M10 9M11

698 622762

583 582

160

236

171 214

329374

350

282 89

1,027 1,156

1,348

1,037 885

Net Income - ex one-off and regulatory assets and liabilities

Regulatory assets and liabilities

One-off

35

Amortization Schedule – Principal (R$ million)

1 – Brazilian Interbank Interest Rate 2 – Pension Fund

• September, 2011:– Average debt cost in 3Q11 was 112% of CDI1 or 12.6% p.a.– Average debt maturity of 6.9 years– Net debt: R$ 2.9 billion – Net debt/EBITDA of 1.2x adjusted with Pension Fund

Debt ProfileNet Debt (R$ billion)

²

Local Currency (ex FCesp) Fcesp

2008 2009 2010 9M10 9M11

2.5 2.7 2.4 2.6 2.9

Net Debt (R$ billion)

1.5x1.4x

0.9x

Net Debt/Ebitda Adjusted with Fcesp

1.0x 1.2x

2011 2012 2013 2014 2015 2016 2017 2018 2019 -2028

281 301532

226 335 225375

180

80 45

48

5155

5862

847

22

360 346

579

277390

283437

1,047

65

75

85

95

105

115

125

Dec-10 Feb-11 Apr-11 Jun-11 Aug-11

9M11 1

Ibovespa IEE² AES Eletropaulo PN AES Eletropaulo TSR³

+ 2%

- 24 %

- 11%

+ 11%

36

Average Daily Volume (R$ thousand)

Capital MarketsAES Eletropaulo X Ibovespa X IEE

• Market cap4: R$ 4.8 billion• BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares)• ADRs at US OTC Market: EPUMY (preferred shares)

1 – Index: 12/30/2010 = 100 2 – Electric Energy Index3 – Total Shareholders’ Return 4 - Index: 09/30/11. Calculation includes only preferred shares.

A Ex dividends: 04/30/2011

A

15,000.00

17,000.00

19,000.00

21,000.00

23,000.00

25,000.00

27,000.00

29,000.00

2008 2009 2010 9M11

25,677

21,960

24,496

28,500

B

B Ex dividends: 08/11/2011

Social Responsibility

Commitment with sustainability

Cross-cutting

themes

– Education for sustainability– Stakeholders active participation– Communication, knowledge and information

SUSTAINABLE ENERGY

GENERATION

EFFICIENCY IN THE USE OF

RESOURCESSAFETY

DEVELOPMENT & VALUATION

OF COWORKERS, SUPPLIERS

AND COMMUNITIES

INNOVATION IN PRODUCTS

AND SERVICES

... means allocating them in such a manner

that balanced and perennial results are

ensured for all stakeholders, abiding by the values practiced by

the company

... means using economic, social and

environmental resources in a balanced fashion, preserving the

present time and ensuring the future

...means knowing, involving in a

transparent form and positively influencing

our coworkers, suppliers and

communities to build a collective agenda that

generates value for everyone

... means providing an environment and

culture that inspire solutions that improve people’s lives, ensuring quality and excellence

in the services rendered to the customer.

... means an attitude of protection of our

employees, suppliers and population.

SUSTAINABLE ENERGY

GENERATION

EFFICIENCY IN THE USE OF

RESOURCESSAFETY

DEVELOPMENT & VALUATION

OF COWORKERS, SUPPLIERS

AND COMMUNITIES

INNOVATION IN PRODUCTS

AND SERVICES

... means allocating them in such a manner

that balanced and perennial results are

ensured for all stakeholders, abiding by the values practiced by

the company

... means using economic, social and

environmental resources in a balanced fashion, preserving the

present time and ensuring the future

...means knowing, involving in a

transparent form and positively influencing

our coworkers, suppliers and

communities to build a collective agenda that

generates value for everyone

... means providing an environment and

culture that inspire solutions that improve people’s lives, ensuring quality and excellence

in the services rendered to the customer.

... means an attitude of protection of our

employees, suppliers and population.

38

“AES Eletropaulo nas Escolas” ProjectEducation about safe and efficient use of energy to 4.5 thousand teachers and 404 thousand students from 900 public schools, between 2010 and 2011. The actions include recreational

activities offered in adapted trucks.

“Casa de Cultura e Cidadania” ProjectIt offers courses and activities in culture and sport for 5.2

thousand children and teenagers in 7 units of AES Brazil. In two AES Eletropaulo’s units the project benefits 1.6 thousand

people in low-income communities.

Social Responsibility: Main Projects

“Centros Educacionais Luz e Lápis” ProjectTwo units in São Paulo attending 320 children from 1 to 5 years old, in social vulnerability.

Children education and development

Development and transformation of communities

Education about Safety and Efficiency in energy consumption

Education, culture

and sport

39

Women inclusion and income generation

Social inclusion and income generation“Empreender com energia” Project

In partnership with the “Aliança Empreendedora” Institution,community residents of Vl. Guacuri neighborhood – SP areempowered to entrepreneurship, in groups or individually, in order toimprove their income and life quality. Starting in 2010, the project nowhas two productive groups and 19 individual entrepreneurs.

Inclusive

and

Social Business

Social Responsibility: Main Projects

“Fornecedor Cidadão” ProjectEmpowerment of female electricians to work onenergy cutting and reconnection. Project started in2010 with 41 women.

40

“Energia do Bem” Project

Active participation of employees to transform low incomecommunities and to work on institutions development. Starting in2008, the program counts on the participation of 12% of AESEletropaulo employees, in activities like winter clothes campaignsand support in several activities institutions.www.energiadobem.com.br

Converting Consumers to ClientsA project developed to work on electrical network regularization.Since 2004, more than 437 thousand families in low incomecommunities were benefited from better energy supply conditionsand social inclusion.

The project has already substituted:880 thousand lamps22 thousand refrigerators and7 thousand showers

for more efficient equipments

Social Responsibility: Main Projects

41

Attachments

43

Costs and Expenses

Costs and operational expenses1 (R$ million)

1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses

2

Energy Purchase, Transmission and Connection Charges, and Water Resources

Other Costs and Expenses

2008 2009 2010 9M10 9M11

239 214 246174 181

112 201187

125 115

351

415 433

299 296

2008 2009 2010 9M10 9M11

485700 647

461 475

329

352 443

308 368

379

254 165

202 67

1,193 1,306

1,255

970 909

Personnel and Payroll Material and Third Party Others

44

Costs and Expenses

Costs and operational expenses1 (R$ million)

1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses3 – In 2009 expenses with Pension Fund increased due to inflation rate (IGP-M) increase and reversal of R$ 63 million in 4Q08 caused by actuarial liability adjustment

PMS and Other Expenses (R$ million)

32008 2009 2010 9M10 9M11

4,700 5,125 5,4904,036 4,220

1,1931,306

1,255

970 909

5,8936,431

6,745

5,006 5,129

Energy Supply and Transmission Charges PMS² and Others Expenses

Action Plan: R$ 242 million with increase of R$ 122 million in emergency teams

45

Concluded in September 2011

Concluded in November 2011

availability of 353 emergency teams 38% increase in call center positions (150 positions) doubling of SMS receipt capacity to 100 thousand / day training of 276 maintenance and construction electricians hiring of 30 additional pruning electricians

training of 240 electricians for emergency attendances in powered grid beginning of 276 maintenance and construction electricians activitiesand training conclusion of other 304 300 additional stand by positions in call center for emergencysituations increase of call center service capacity by 27 times from 2 thousand to54 thousand calls/hours

December to March increase of 120 emergency teams, totaling 473 teams

46

AES Tiete's expansion obligation

Efforts being made by the Company to meet the

obligation :

• Long-term energy contracts (biomass)

totaling an average of 10 MW

•SHPP São Joaquim -started operating in July,

2011, with 3 MW of installed capacity

•SHPP São José – under construction, with 4 MW

of installed capacity, expected to be

operational in 2012

• Thermo-SP - Project of a 550MW gas fired

thermal plant

1999 Jul/09Out/08Ago/08 Set/11Set/10

Privatization Notice established the

obligation to expand the installed capacity in 15%

(400 MW) until 2007, either in greenfield

projects and/or through long term purchase

agreements with new plants

Aneel informed that the issue is

not related to the concession

agreement and must be

addressed with the State of São

Paulo

Judicial Notice:

The Company was notified by the State of São Paulo

Attorney's Office to present its understanding on the matter, having filed its response on time, the proceedings were

ended, since no other action was taken by the Attorney's

Office

In response to a Popular Action (filed by

individuals against the Federal Government, Aneel, AES Tietê and Duke), the Company presents its defense

before the first instance

Popular Action:Due to the plaintiffs failure to specify the persons that

should be named as Defendants, a favorable

decision was rendered by the first Instance Court

(an appeal has been filed)

AES Tietê was summoned to answer a Lawsuit filed by the

State of São Paulo, which requested the fulfillment of the

obligation in 24 months.

An injunction was granted in order to have a project submitted

within 60 days.

Nov/11

Lawsuit:

The Company appealed to the

State of Sao Paulo State Court

of Appeals and the injunction was

stayed

2007

Company faces restrictions until deadline:

• Insufficiency of hydro resources • Environmental restrictions

• Insufficiency of natural gas supply • New Model of Electric Sector (Law # 10,848/2004), which forbids bilateral agreements between generators and

distributors

47

Next Steps:

1 - The auditing procedure (AP) is expected to

begin by the 1st

half of 2012

2 – AP is expected to be concluded in at least 6 months

3 - After AP’s conclusion, a 1st level court

decision will be released

4 - Appealing to the 2nd instance

court

5 - Foreclosure starts.

Presentation of guaranty

6 - Request to withdraw the

guaranty

7 - Appeals to the 3rd instance

courts

Eletrobras Lawsuit

Nov/86

Stated-owned Eletropaulo

borrowed money from Eletrobras

Dec/88

State-owned Eletropaulo and

Eletrobras disagreed on how

to calculate interest over that

loan and a lawsuit was started

Sep/03

The 2nd level of court excluded

AES Eletropaulo from the

discussion based on the spin-off

agreement

Jun/06

The SCJ decided to send the

Execution Suit back to the 1st

level of court

May/09

Eletrobras requested the 1st

level of court judge to appoint

an expert

Jan/98 Oct/05

Eletrobras and CTEEP appealed

to the Superior Court of Justice

(SCJ)

Dec/10Sep/01

Eletrobras, after winning the

interest calculation

discussion, filed an Execution Suit to collect the due

amount

State-owned Eletropaulo was spun-off into four companies and, according to our understanding based on the

spin-off agreement, the discussion was transferred to

CTEEP

Privatization event . State-

owned Eletropaulo

became AES Eletropaulo

Apr/98

Eletrobras requested the

beginning of the appraisal

procedure, which is under 1st. instance

court analysis

Jul/11

On July 7, the judge determined Eletropaulo and

CTEEP to present their

considerations, which occurred in

August

48

Any party with an intention to dispose its shares should first provide the other party the right to buythat participation at the same price offered by a third party

Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of all its shares at the time, if the Right of 1st Refusal is not exercised by offered party

In the case of change in Brasiliana’s control, tag along rights are triggered for the following 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

Shareholders AgreementOn Dec 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship as shareholders ofBrasiliana 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 refusal

Drag alongrights

Tag alongrights

49

Brazilian Main Taxes

AES Eletropaulo

• Income Tax / Social Contribution:

– 34% over taxable income

• ICMS: 22% over Revenue (average rate)

– Residential: 25%

– Industrial and Commercial: 18%

– Public Entities: free

• PIS/Cofins:

– 9.25% over Revenue minus Costs

AES Tietê

• Income Tax / Social Contribution:

– 34% over taxable income

• ICMS (VAT tax)

– deferred tax

• PIS/Cofins (sales tax):

– Eletropaulo´s PPA: 3.65% over Revenue

– Other bilateral contracts: 9.25% over Revenue

minus Costs

The statements contained in this document with regard to the business prospects, projected operating and financialresults, and growth potential are merely forecasts based on the expectations of the Company’s Management inrelation to its future performance. Such estimates are highly dependent on market behavior and on the conditionsaffecting Brazil’s macroeconomic performance as well as the electric sector and international market, and they aretherefore subject to changes.

Contacts:ri.aeseletropaulo@aes.com

ri.aestiete@aes.com

+ 55 11 2195 7048