2010 Results

March, 2011

2

• Ebitda amounted R$ 2,412.8 million, 35,9% higher than 2009

• Net income of R$ 1,347.7 million, 16.5% higher than 2009

• IFRS: positive impact of R$ 322.6 million in dividends

2010 Highlights

������������������• Energy volume consumption higher than 2009: captive market 2.9% and free clients 15.8%

• Losses: 90 bps lower than 2009

• Approximately 10% reduction in SAIDI and SAIFI in 2010

• Investments of R$ 682.3 million, 32.2% higher than 2009

• Receipt of 2nd installment due to São Paulo Municipality Agreement: R$ 75.5 million

• Financial settlement of the AES EP Telecom quotas in the amount of R$ 265.4 million

• Provision reversal of R$ 86.9 million (pension supplementation)

• Final settlement with Banco Santos S.A. in the amount of R$ 106.3 million

• Proposal for complementary dividends distribution and interest on equity totalizing R$ 916.4 million, composed by R$ 5.16 per ordinary share and R$ 5.68 per preferred share, to be approved on the OGSM, to be held on April 29, 2011

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• Positive tariff adjustment index of 8.00% related to 2010/2011 cycle, with an average effect of

1.62% to the consumers

Regulatory Aspects

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• New methodology proposal for the 3rd Tariff Review Cycle on study by Aneel, with a possible

postponing of the new tariffs application that according to the concession contract is should occur

as from July 4th, 2011

• On January 11th, 2011, Aneel open a proposal in public hearing in order to define the procedures for

the Discos that would have its tariff review before the approval of the methodology

• Aneel's proposal: maintain the tariff as it is for the discos with the date of the tariff review before to

the methodology approval, expected to happen up to September 2001, having the tariff review of

the discos up to 90 days after its approval

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41 – Own consumption not considered

Residential and commercial class growth higher than the captive market performance

Consumption Evolution (GWh)¹

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

15,014

6,032

10,752

2,638

34,436

6,832

41,269

15,546

6,137

11,081

2,671

35,434

7,911

43,345

2009 2010

+3.5% +1.7% +3.1% +1.2% +2.9% +15.8% +5.0%

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Losses - (% - last 12 months)Collection rate (% over gross revenues)

1 - Current Technical Losses used retroactively as reference

Collection rate and losses reflect continuous efforts of operational improvements

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2008 2009 2010

98.5101.1 102.4

2008 2009 2010

6.5 6.5 6.5

5.1 5.3 4.4

11.6 11.810.9

Technical Losses¹ Commercial Losses

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Investments and initiatives improved the SAIFI performance

Source: ANEEL e AES Eletropaulo

SAIFI – System Average Interruption Frequency Index

5.65

5.20

6.17 6.34 6.41 6.29 6.29 6.16 6.12 6.12 5.96 5.855.61 5.52 5.42 5.30

5.55

11.7211.34

11.7412.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

11.00 11.00

8.49 8.41

7.87

7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39

6.93 6.93

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AES Eletropaulo Brazil Aneel Target - AES Eletropaulo

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Investments and recovery plan implemented from April led to SAIDI reduction

SAIDI – System Average Interruption Duration Index

Source: ANEEL e AES Eletropaulo

8.909.20

11.9012.45 12.74 12.66 12.72

12.39 12.22 12.09 11.79 11.6511.25

10.84 10.6810.18 10.30

16.0816.63

18.70 19.00 19.00 19.00 19.00

20.00

22.00

21.00 21.00 21.00 21.00

20.00 20.00

11.34 10.92

10.099.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32

8.68 8.68

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AES Eletropaulo Brazil Aneel Target - AES Eletropaulo

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Investments 2010 (R$ million)

Capex 2010 of R$ 682 million, 32% higher of 2009

Main investments:

� Enlargement of 9 Sub-stations and increase of the installed capacity of 267 MVA - R$ 174 MM

� Meet the demand of 179 thousand new clients -R$ 132 MM

� Anhanguera-Casa Verde UTL* - R$ 26 MM

� Maintenance of 3,265 km from our grid - R$ 186 MM

*Underground Transmission Line

2009 2010 4Q09 4Q10

226348

81149

260

307

96

133

29

28

15

18

516

682

192

299

Expansion Maintenance Others

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Investments 2011 (R$ million)

2011 investments 6% higher than 2010

Main investments:

� Installation of 1,700 automatic reclosers (vs. 282 in 2010)

� Installation of 107 thousand phase spacing (vs. 33 thousand in 2010)

� 750 km of reform in the secondary grid and 5,800 km of maintenance in the primary grid (14% of the grid)

� 1 new sub-station2010 2011(e)

348 367

307336

28 17

682 720

Expansion Maintenance Others

101 – Reversal of monetary change revenue regarding sale of fixed assets 2- Borrowing costs, Pension Fund, Stock Options, Fixed Assets and Intangible

IFRS introduction impacts (R$ million)

IFRS adoption positively impacted the dividend distribution basis in R$ 323 million

Net incomebefore IFRS

adoption

RegulatoryAssets andLiabilities

Taxes of Lands

Revaluated

ConcessionContract

Reversion ofExchangeVariation¹

Others² 2010IFRS

Net Income

Openingbalance

adjustments

Adjustmentsrelated to

2009

Realizationof equityvaluation

adjustment

Legal Reserve

5%

2010Distribuiton

Basis

1,186 1,1861,422 1,372 1,352 1,348 1,348 1,348 1,384 1,477 1,542 1,542

236 20 (70)(19) (5)

36 93

121 (56)

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2009 2010 4Q09 4Q10

8,786 9,697

2,446 2,651

4,5455,017

1,283 1,323

13,331

14,714

3,728 3,975

Net Revenue Deduction to Gross Revenue

Gross revenue (R$ million)

+10%

+10% +7%

+8%

The growth of 10% in net revenues reflects the tariff adjustment (+1.62%) effect, captive market growth

(+2.9%) and IFRS adoption as from 2010

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PMS0 reduction due to lesser expenses with contingencies

1 - Depreciation not include and other operating income and expenses 2 - Personnel, Material and Services

Operating Costs and Expenses¹ (R$ million)

+7%

+5%

-4%

7%

+17%

-27%

2009 2010 4Q09 4Q10

5,125 5,490

1,238 1,454

1,3061,255

393 285

6,431 6,745

1,631 1,739

Energy Supply and Transmission Charges PMS² and Others Expenses

13

PMS and other expenses (R$ million)

Extraordinary items growth was offset by provision reversal and reduction of lawsuit expenses

2009 Personnel Material and Third Party Services

Others Expenses

2010

1,306 1,3061,405

1,255 1,255

99

91 (240)

14

79

35 40

ConsultingITSAIDI/SAIFI Recovery ProjectsOthers Expenses

34

18 15

33

RAC - Apportionment of the Headquarters’ ExpensesHealth Pan - Law 9656SAT - Occupational Accident InsuranceOthers Expenses

34

1815

33 34

1815

Personnel cost, materials and third-party services without non-recurring items, would have grown,

respectively, 11% and 14%

Materials and Third-party Services (R$ million)Personnel (R$ million)

R$ 99 million variation - 33% R$ 91 million variation - 26%

79

35

40

15

Ebitda (R$ million)

Market growth, non recurring events, lower provisions and contingencies, positively

contributed Ebitda

1 – Personnel, Materials, Services and Others 2 – One-off effect items: R$ 265.4 million AES EP Telecom liquidation, R$ 75.5 million Sao Paulo Municipality Agreement and R$ 86.9 million reversal of provisions referred to supplementary pension plan litigations

2009 Market PMSO¹ Otherrevenues

andexpenses

2010without IFRS and One-off

Effects

IFRS One-offeffects²

2010

1,775 1,775 1,898 1,829 1,829 1,8291,985

2,413

218 (96)(69) 156

428

16

2009¹ 2010² 4Q09 4Q10

270

103

268

31

Financial Result (R$ million)

-62%

Positive effect of the settlement with Banco Santos in 2010, lower than impact of application to Refis in 2009

-88%

1 – Application to Refis R$ 275 million 2 – Settlement with Banco Santos R$ 106 million

17

2009 2010 4Q09 4Q10

782997

327 218

374

350

298

81

1,156

1,348

625

300

Recurring One-off effects

101.6%114.4%

20.4%

28.6%

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Pay-out¹ Dividend Yield

-30%

-50%+29%

+17%

2010 pay-out reaches 114.4%, impacted by net income growth of 17%

1 – Pay-out in 2009 calculated based on net income and distributable in 12.31.2009

Net Income (R$ million) Final Cash (R$ million)

+33%

2009 2010

1,2491,664

18

2008 2009 2010

2.5

2.7

2.4

Net Debt (R$ billion)

1.5x 1.4x

0.9x

Net Debt/Ebitda Adjusted with Fcesp

Average Cost and Average Term (Principal)Net Debt

1 - Last 12 months of EBITDA Adjusted 2 – Brazil’s Interbank Interest Rate percentage

¹

Reduction of 11% in net debt and 2010 refinancing contributed positively to reduce cost and the length of term of the debt

2008 2009 2010

102.8%

114.9%110.0%

CDI²

7.1 7.0

7.2

Average Term - Years

19

� �������� ������� • Preferred Shares Class A conversion into Class B, ensuring 100% of tag along to all preferred shares issued by the Company

• Maintenance of AES Eletropaulo shares in ISE – BM&FBovespa Sustainability Index, for the 6th consecutive year

• AES Eletropaulo entry in ICO2 Index - BM&FBovespa Carbon Efficiency Index –reinforcing the commitment with the adoption of transparency practices related to its greenhouse gas emission

• Highlight among the most admired companies in Brazil, according to the ranking elaborated by Carta Capital Magazine

• Prêmio Ibero-Americano de Qualidade (Iberian-American Award of Quality), which recognizes management excellence of the participating companies and organizations

• Prêmio Consumidor Moderno de Excelência em Serviços ao Cliente (Clients Services Excellency Award), in Electric Energy category, from Consumidor Moderno Magazine

Governance and Recognition

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