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1
Institutional
June, 2012
AES Brasil Group
2
• Presence in Brazil since 1997
• Operational Figures:
• Consumption units: 7.7 million
• Distributed Energy: 53.6 TWh
• Installed Capacity: 2,659 MW
• Generated Energy : 13.9 TWh
• 7.4 thousand AES Brasil People
• Investments 1998-2011: R$ 8.1 billion
• Solid corporate governance and sustainable
practices
• Safety as value #1
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
Mission & visions
Mission
• Improving lives and promoting development by providing safe, reliable and sustainable energy solutions
Visions
• Be a leader in operational and financial management in Brazilian energy generation sector and expand installed capacity
• Be the best distributors in Brazil
“Casa de Cultura e Cidadania” Project - Offers courses and activities in culture and sports. Directly benefits
approximately 5.6 thousand children and teenagers and indirectly 292 thousand people in 7 units located within
AES Brazil companies‟ areas of operation
Social responsability: annual investments
of R$ 83 million
“Centros Educacionais Luz e Lápis” Project - Two units in São Paulo attending 300 children from
1 to 6 years old in condition of social vulnerability
Children educational development
Development and transformation of communities
5
Developed for grid connection regularization. Since 2004, more than 500 thousand families in
low income communities were benefited from better energy supply conditions and social
inclusion.
“AES Eletropaulo nas Escolas” Project - Education about safe and efficient use of energy to 4.5
thousand teachers and 404 thousand students from 900 public schools. The actions include
recreational activities offered in adapted trucks.
Education on safety and efficiency in energy consumption
Converting consumers to clients
6
AES
Infoenergy
AES
Uruguaiana
AES
Eletropaulo
AES
Tietê
AES Corp BNDES
C = Common Shares
P = 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 share
P 100%
T 53.85%
C 50.00% + 1 share
P 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%
7
24.2% 28.3% 39.5% 8.0%
8.5% 56.2% 19.2% 16.1%
Others² Free Float ¹ ¹
1 - Parent companies, AES Corp and BNDES, have similar voting capital on each of the Companies: approx 38.2% on AES Eletropaulo and 35.7% on AES Tietê
2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively
3 - Base: 05/31/2012. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê
U$ 4.9 bi
U$ 2.0 bi
Market Cap³
AES Tietê and AES Eletropaulo are listed
in BM&F Bovespa
8
AES Brasil is the second largest group in the
electric sector Ebitda1 – 2011 (R$ Billion)
Net income1 – 2011 (R$ Billion)
1 – excluding Eletrobrás Source: Companies‟ financial reports
2 – includes AES Atimus sale (aprox. R$ 1 billion in EBITDA and aprox. R$ 700 million in net income)
CEMIG AES BRASIL CPFL TRACTEBEL NEOENERGIA CESP COPEL EDP LIGHT DUKE
5.44.9
3.8
2.9 2.9
2.01.9
1.51.2
0.7
2
AES BRASIL CEMIG CPFL NEOENERGIA TRACTEBEL COPEL LIGHT DUKE CESP EDP
3.0
2.4
1.6 1.61.4
1.2
0.50.3 0.3
0.1
2
TRACTEBEL 6,1%
AES TIETÊ 2,3%
CPFL2,4%
DUKE1,9%
EDP1,6%
NEOENERGIA1,2%
ENDESA0,8%
LIGHT0,8%
CHESF 9%
FURNAS 8%
ELETRONORTE 8%
ITAIPU 6%
ELETRONUCLEAR3%
CGTEE1%
ELETROSUL0,4%
CESP 6%
CEMIG6%
PETROBRÁS 5%
COPEL4%
DEMAIS27%
9 1- Sources: ANEEL – BIG (March, 2012) and Companies websites 2- Source: Banks „ reports
3 – Eletrobrás, totaling 35%
³
AES Tietê is the 3rd largest among private
generation companies
Approximately 78% of country’s generation
installed capacity is state-owned2
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 the 3rd largest private
generator in Brazil Generation installed capacity (MW) - 20121
10
AES is among the largest distribution
players in Brazil Consumers – Dec/2011
• 63 distribution companies in Brazil
distributing 430 TWh
• AES Brasil is one of the largest electricity
distribution group in Brazil:
– AES Eletropaulo: 45 TWh distributed,
10.5% of the Brazilian market
– AES Sul: 8.6 TWh distributed, 2.0% of the
Brazilian market
Distribution companies’ operations are
restricted to their concession areas
Acquisitions must be only performed by
the holdings of economic groups
AES Brasil
CPFL Energia
CEMIG
Neoenergia
Copel
Light
EDP
Outros
AES Brasil
CPFL Energia
Cemig
Neo Energia
Copel
Light
EDP
Outros
13%
12%
12%
16%7%
7%
5%
30%
Consumption (GWh) - 2011
13%
12%
11%
7%
6%6%6%
52%
Energy Sector in Brazil
¹ Interconnected National System
² Small Hydro Power Plants Sources: EPE, Aneel, ONS and Banks‟ reports
• 13 groups controlling 76% of
total installed capacity
• 22% private sector
• 1,862 power plants
• 117 GW of installed capacity
• 73% hydroelectric
• 17% thermoelectric
• 5% biomass
• 4% SHPP2
• 1% Wind
• Contracting environment –
free and regulated markets
• 68 companies
• 68% private sector
• High voltage transmission
(>230 kV)
• 98,648 km in extension
lines (SIN¹)
• Regulated public service
with free access
• Regulated tariff (annually
adjusted by inflation)
• 63 companies
• 430 TWh of energy
distributed in 2011
• 70 million consumers
• 67% private sector
• Annual tariff adjustment
• Tariff reset every four or
five years
• Regulated public service
• Regulated contracting
environment
• Consumption of 113 TWh
(26% of Brazilian total market)
• Conventional sources: above
3,000 kW
• Alternative sources: between
500 kW and 3,000 kW
• Large consumers can
purchase energy directly
from generators
• Free contracting environment
Generation Transmission Distribution Free Clients
Energy sector in Brazil: business segments
12
Auctions: New Energy
and Existing Energy Bilateral contracts (PPAs1)
• 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 PPA1
– Existing Energy (A-1): Delivery in 1 year, 5-15 years regulated PPA1
13
Energy sector in Brazil:
contracting environment
Generators, Independent Power Producers
(IPPs), Trading companies and Auto producers
Free clients Distribution companies
Generators and Independent
Power Producers (IPPs)
Regulated market Free market
1 – Power Purchase Agreement
14 1- Energy destined to equalize the differences between the sum of power plants‟ physical guarantees and the system‟s physical guarantee.
2- Supply based on physical guarantee
Electric sector in Brazil:
demand and supply balance
Static balance – Load x Supply (considering reserve energy1)
• Brazilian electric system
presents a surplus in the
energy balance for the
years to come
• Low risk of rationing
• Expansion opportunities
since this capacity is not
yet fully contracted
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance (%) 5.9% 7.8% 11.2% 9.6% 8.4% 10.0% 10.6% 8.2% 5.4% 4.2%
Balance 3,528 4,875 7,443 6,684 6,097 7,590 8,404 6,734 4,673 3,770
Reserve 439 1,007 1,509 1,743 1,746 2,959 2,959 2,959 2,959 2,959
Supply 62,912 66,355 72,585 74,492 76,823 80,320 84,428 85,886 87,601 90,409
Load 59,823 62,487 66,651 69,551 72,472 75,689 78,983 82,111 85,887 89,598
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Sta
tic b
ala
nce -
Lo
ad
x S
up
ply
(M
W a
vg
)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
110 110 110 110 110 110 110 110 110 110
6 13 23 24 28 33 38 41 42 422 3 5 8 11 14 19
117 123 133 136 141 148156 162 166 171
Current installed capacity Auctioned Upcoming auctions
15
Generation market overview
Installed capacity (GW)1
• Brazilian installed capacity to grow 4-5% y.o.y (~ 5 GW) over the next 10 years
• Renewable energies will lead the capacity increase with competitive cost vs. other technologies and strong
Government support
• Gas-fired thermal to leverage on the pre-salt discoveries and on the dispatchability benefit
Growth by source - new auctions (GW)
1- Source: EPE (Energetic Research Company), Ten-year Energy Plan 2020, May/2011
2- Amount related to thermal is an estimate of the Company
Thermal2,6
Hydro8,6
Renewables10,6
Total: 22 GW
2
16
Regulatory
Opex
(PMSO)
Investment
Remuneration
Depreciation
Energy
Purchase
Transmission
Sector Charges
Tariff reset and readjustment
• Tariff Reset is applied each 4 years for AES Eletropaulo
− Base date: Jul/2011
− Parcel A: costs are largely passed through to the tariff
− Parcel B: costs are set by ANEEL
• Tariff Readjustment: annually
− Parcel A : costs are largely passed through to the tariff
− Parcel B: cost are adjusted by IGPM +/- X(1) Factor
Remuneration
Asset 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 operating cost determined by
ANEEL (National Electricity Agency)
• Parcel A Costs
− Non-manageable costs that are largely
passed through to the tariff
− Incentives to reduces costs
1 – X Factor: index that captures productivity gains
Energy sector in Brazil:
regulatory methodology
17
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
Capture productivity
gains
Stimulate
improvement of
service quality
Implement
operational expenses
trajectory
Defined at tariff reset,
considers the average
productivity of sector
adjusted by market
growth and
consumption variation
Defined at each tariff
readjustment, considers
variation of SAIDI and
SAIFI and comparative
performance of discos
Defined at tariff reset,
considers reference
company and
benchmarking
methodologies
DEFINITION
OBJECTIVE
APPLICATION
Timeline 2012 – 3rd cycle tariff reset
April,
10th
-ANEEL‟s Board of
Directors approved opening
of public hearing
-Release of ANEEL‟s
preliminary proposal of
-5.14% as economic effect
and -8.81% as average
effect for clients
April,
12th
- Initial period
of public
hearing
contribution
- ANEEL
provided
information
and technical
notes
May, 11th to
June. 4th
Interaction
with the
regulator
July,
4th
Tariff
adjustment
incorporating
the settlement
of tariff reset
April,
23rd
June
Final definition
on ANEEL‟s
Board of
Director
meeting
May,
11th
Deadline to
public hearing
contributions
Response to
audit report -
Regulatory
Asset Base
Tariff reset
public hearing
in person
session
April,
26th
20
AES Tietê overview
18 hydroelectric plants in São Paulo and Minas Gerais
30-year concession valid until 2029; renewable for
another 30 years
Installed capacity of 2,663 MW, with physical guarantee1
of 1,282 MW average
Almost all the amount of energy that AES Tietê can sell
is contracted with AES Eletropaulo until the end of 2015
AES Tietê can invest in generation, its main activity, and
operate in energy trading
364 employees as of March, 2012
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 average1)
21
130%
125% 124%
Generation/Physical guarantee
136%
130%
2009 2010 2011 1Q11 1Q12
1,6651,599 1,582 1,612
1,753
Generation - Mwavg
59%
10%
9%
6%
5%
4%7%
Agua Vermelha
Nova Avanhandava
Promissão
Ibitinga
Bariri
Barra Bonita
Other Power Plants*
2009 2010 2011 1Q11 1Q12
11,108 11,108 11,108
2,526 2,879
2,331 1,980 426
5871,256
1,150 1,340 204
424570
117 301 554
108 162
14,706 14,729 15,122
3,645
4,867
A significant amount of billed energy and net
revenues comes from the bilateral contract with
AES Eletropaulo
Billed energy (GWh)
1 – Energy Reallocation Mechanism
Net revenues (%)
22
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 contracts1
88%
3%
2%
6%
AES Eletropaulo
Outros contratos bilaterais
MRE
Mercado Spot
94%
3%2%
1%
AES Eletropaulo
Other bilateral contracts
Spot Market
MRE
94%
3%2%
1%
AES Eletropaulo
Other bilateral contracts
Spot Market
MRE
94%
3%2%
1%
AES Eletropaulo
Other bilateral contracts
Spot Market
MRE
1
2010 2011 2012(e) 1Q11 1Q12
70
156
3419
12
19
4
2
82
175
174
3821
Investments New SHPPs*
23
Investments (R$ million) 1Q12 Investments
*Small Hydro Power Plants
86%
11%3%
Equipment and Maintenance
New SHPPs
IT Projects
*
Nova Avanhandava and Ibitinga power
plants modernization investments
24
Growth opportunities and capacity expansion obligation
“Thermal São Paulo” Project
- Natural gas combined cycle thermal plant, with 550 MW of installed capacity
- Gas unavailability for A-5 energy (2011)
- Project registered in 2012 A-3 and A-5 auctions. Deadlines to turn in the gas contract are June 28th and August 6th,
2012, respectively
- Environmental license was suspended by court injunction, but on May 15th, 2012, the State of São Paulo Court of
Appeals has suspended the injunction. A decision on the merits of the appeal is still pending
- Next steps: Fullfillment of requirements to obtain the installation license
- April 26th: Presentation of the Company‟s capacity expansion plan (Thermal São Paulo Project)
“Thermal Araraquara” Project
- Purchase option acquired in March, 2012
- Natural gas combined cycle thermal plant, with 579 MW of installed capacity
- Registered for A-3 and A-5 energy auctions in 2012
- High sinergy potential with Thermal São Paulo
Expansion Obligation
2009 2010 2011 1Q11 1Q12
1,670 1,754 1,886
416 540
(54)
2009 2010 2011 1Q11 1Q12
1,309 1,311
9
1,255 1,3201,466
338423
25
Ebitda (R$ million) Net revenue (R$ million)
Financial highlights
75% 75% 78% 81%
Ebitda Margin
2008 2009 2010 9M10 9M11
1,309 1,311
9
1,254 1,255 1,320 1,035 1,048
Recurring Non-recurring
78%
Steady earnings distribution on a
quarterly basis
Net income and dividend pay-out1 (R$ million)
26 1 – Gross value
Recurring Non - recurring Pay - out Yield Pref
• Dividends distribution practice:
100% of net income
– 25% of minimum pay-out
according to bylaws
– Average payout since 2006:
106%
– Average dividends since 2006:
R$ 745 million per year
(36)
11% 11% 11%
2009 2010 2011 1Q11 1Q12
742 706845
193 246
31
706 737
110% 117% 109%
2009 2010 2011 1Q11 1Q12
0.4 0.40.4 0.5
0.5
Net Debt
0.3x 0.3x 0.3x
Net Debt / EBITDA
0.4x0.3x
27
Debt profile
Net debt (R$ billion) Amortization schedule – principal (R$ million)
• March, 2012:
– Average debt cost in 1Q12 was 115% of CDI1 p.a. or 15% p.a.
– Average debt maturity of 2.0 years
1 – Brazilian Interbank Interest Rate
2013 2014 2015
300 300 300
28 1 – Index: 05/31/2011 = 100 3 – Total Shareholders‟ Return
Capital markets
• Market Cap4: US$ 4.9 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: 05/31/2012
Daily avg volume (R$ thousand) AES Tietê X Ibovespa X IEE
2 – Electric Energy Index
2009 2010 2011 YTD May/12
8,0869,683 9,537
13,916
2,101
4,239 3,397
2,83810,187
13,922 12,93416,754
Preferred Common
70
80
90
100
110
120
130
May-11 Aug-11 Oct-11 Dec-11 Mar-12 May-12
12 Months1
Ibovespa IEE² GETI4 TSR³ GETI3
+ 13%
-16%
+ 10%
+ 16%
+ 9%
30
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 and 6.3 million consumption
units in a concession area of 4,526 km2
45 TWh distributed in 2011
AES Eletropaulo, as a distribution company, can only invest in
assets within its concession area
5,809 employees as of March, 2012
Concession area
31
Consumption Evolution
Total market1 (GWh) Consumption by class – 12 months (%)
1 – Net of own consumption
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2008 2009 2010 1H10 1H11
33,860 34,436 35,434
17,437 18,216
7,383 6,8327,911
3,823 4,149
41,243 41,26943,345
20,71422,366
Captive Market Free Clients
2009 2010 2011 1Q11 1Q12
34,436 35,434 36,817
9,078 9,239
6,8327,911
8,284
2,040 1,906
41,269 43,34545,102
11,119 11,146
Free Clients Total Market
Brazil AES Eletropaulo
2737
18
28
40
26
15 9
Residential Commercial Industrial Others
-15%
-10%
-5%
0%
5%
10%
15%
Jul/07 Feb/08 Sep/08 Apr/09 Nov/09 Jun/10 Jan/11 Aug/11 Mar/12
Industrial production SP (% 12 months) Industrial (% 12 months)
Economic recovery Economic crisis
Industrial Class
Industrial class X Industrial production in São Paulo State
Consumption of industrial class by activity1 – AES Eletropaulo
• Industrial consumption is
influenced by manufacturing
industry performance in São Paulo
State
• Recent slowdown is influenced by
the decrease of industrial
production in 2011 and 2012
32 1 – As of March, 2012.
Vehicles, Chemical,Rubber, Plastic
and Metal products
48%
Other industries
52%
2,800
3,300
3,800
4,300
4,800
1,000
1,200
1,400
1,600
1,800
1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12
Resid
en
tial
(GW
h)
Avera
ge I
nco
me R
$ -
SP
(q
-2¹)
Avg Real Income R$ - SP (q-2¹) Residential (GWh)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
258
220
192 199 203 207
213 219 223 228 229 234
- 9.4%
Residential class
Residential class X Average income in São Paulo Metropolitan Area
1 - Two quarters of delay in relation to consumption
• Residential consumption driven
by average income
• Income expansion trend in São
Paulo Metropolitan Area will
sustain growth of residential class
• Average annual growth (2003-
2011):
– total residential market: 5.5% y.o.y
– consumption per consumer: 2.1%
y.o.y
Consumption per consumer is
still 9.4% lower than in
the period before the rationing
33
Consumption per consumer (in kWh)
Rationing
34
Investments focused on grid automation,
maintenance and system expansion
Investments breakdown (R$ million) Investments 1Q12 (R$ million)
34
0
100
200
300
400
500
600
700
800
2009 2010 2011(e) 9M10 9M11
478
654715
362
513
37
2829
22
16516
682
744
383530
Capex Paid by Customers
44
46
53
6
7
7
22
Maintenance
Client Service
System Expansion
Losses Recovery
IT
Paid by the Clients
Others
35
SAIDI - System average interruption duration index
SAIDI reduction as a result of
action plan implementation
8th 7th
Sources: ANEEL, AES Eletropaulo and ABRADEE
1 – Accumulated 3 months (Jan-Mar) 2011 and 2012
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
► 2012 SAIDI ANEEL Reference: 8.67 hours
6th
- 26%
2009 2010 2011
11.86 10.60 10.36
SAIDI (hours)
10.09 9.32
8.68
SAIDI Aneel Reference
2009 2010 2011
11.86 10.60 10.36
SAIDI (hours)
10.09 9.32
8.68
SAIDI Aneel Reference
3M11 3M12
3.472.57
1 1
36
SAIFI - System average interruption frequency index
SAIFI remains below regulatory limit
7th 3rd
Sources: ANEEL, AES Eletropaulo and ABRADEE
1 – Accumulated 3 months (Jan-Mar) 2011 and 2012
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
► 2012 SAIFI ANEEL Reference: 6.87 times
4th
7.87 7.39
6.93
SAIFI Aneel Reference
2009 2010 2011
6.17 5.43 5.45
SAIFI (times)
7.87 7.39
6.93
SAIFI Aneel Reference
2009 2010 2011
6.17 5.43 5.45
SAIFI (times)
- 22%
3M11 3M12
1.801.40
1 1
37
Losses (%) Collection rate (% over Gross Revenues)
Operational KPIs
From Jul/10 to Jun/11: 12.45% From Jul/09 to Jun/10: 12.32%
ANEEL References:
2009 2010 2011 1Q11 1Q12
6.5 6.5 6.5 6.5 6.4
5.3 4.4 4.0 4.3 4.0
11.8 10.9 10.5 10.8 10.4
Technical Losses Commercial Losses
38
“Creating Value” Project
Internal process review: (i) operating activities; (ii) support functions
Target definition for productivity
increase
Reassess organization structure
Review supply management
Reassess and reinforce non-technical
losses initiatives
Objective: to operate
within the regulatory
framework for
operational costs,
and seek benchmark
position in the
sector
39
Ebitda (R$ million) Net revenues (R$ million)
Financial highlights
2008 2009 2010 9M10 9M11
1,607 1,486 1,6301,325 1,326
-202
357
245 332 89
87
426
301 58
Recurring
Regulatory assets and liabilities
Non-recurring
2009 2010 2011 1Q11 1Q12
8,786
9,697 9,836
2,423 2,472
2009 2010 2011 1Q11 1Q12
1,4911,648
1,473
415182
197
339 442
134
136
87
426 934 1,775
2,413 2,848
549 318
Regulatory assets and liabilities
Non-recurring
Ebitda1
1 – Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 707 million impact on Ebitda
2009 2010 2011 1Q11 1Q12
622762
634
190
160
236 287
92
98
374
350 652
1,156 1,348
1,572
282
110
Regulatory assets and liabilities One-off Série3
40 1 – Gross amount
Net income and dividend payout1 (R$ million)
Earnings distribution
on semi-annual basis
2009 2010 2011 1Q11 1Q12
622762
634
190
160
236 287
92
98
374
350 652
1.156 1.348
1.572
282
110
Net Income - ex one-off and regulatory assets and liabilities
Regulatory assets and liabilities
One-off
13
93.4%114.4%
54.4%
20.4% 28.6% 17.1% 0.0%20.0%40.0%60.0%80.0%100.0%120.0%140.0%
Pay-out Yield PN
93.4%114.4%
54.4%
20.4% 28.6% 17.1% 0.0%20.0%40.0%60.0%80.0%100.0%120.0%140.0%
Pay-out Yield PN
• Dividends distribution practice:
distribution above the minimum
required
- 25% of minimum pay-out according
to bylaws
– Average payout since 2006: 83%
per year
– Average dividends since 2006:
R$ R$ 904 million per year
2– Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income
41 1 – Brazilian Interbank Interest Rate 2 – Inflation Index 3 – Pension Fund
Debt profile Net debt
Amortization schedule – principal (R$ million)
2012 2013 2014 2015 2016 2017 2018 2019 2020 - 2028
351 302
533
228 337
226 436
321 400
70 61
46
49
52
56
60
64
753
421 363
579
277
389
282
496 385
1.154
Local Currency (ex FCesp) Fcesp
2009 2010 2011 1Q11 1Q12
2.0x
1.6x1.3x 1.4x
1.6x1.4x
0.9x0.8x 0.9x 0.9x
Gross Debt/Ebitda Adjusted with Fcesp
Net Debt/Ebitda Adjusted with Fcesp
72%
28%
0.5%
CDI IGP - DI Others1
• March, 2012:
- Average debt cost: 11.9% p.a.
- Average debt maturity: 6.9 years 2009 2010 2011 1Q11 1Q12
2.5 2.4 2.3 2.4 2.4
Net Debt (R$ billion)
2
40
60
80
100
120
140
May-11 Aug-11 Oct-11 Dec-11 Mar-12 May-12
12 Months1
Ibovespa IEE² AES Eletropaulo PN AES Eletropaulo TSR³
+ 13%
- 16%
- 31%
- 8%
2009 2010 2011 YTD May/12
21,96024,496 26,897
49,695
42
Average daily volume (R$ thousand)
Capital markets AES Eletropaulo X Ibovespa X IEE
• Market cap4: U$ 2.0 billion
• BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares)
• ADRs at US OTC Market: EPUMY (preferred shares)
1 – Information until 05/31/2012. Index: 31/05/2011 = 100 2 – Electric Energy Index
3 – Total Shareholder Return 4– Index: 05/31/12. Calculation includes only preferred shares
B Material Fact 10/04/2012: technical notes published by Aneel regarding the calculation
of the preliminar tariff review rate, including the regulatory asset basis .
Ex dividends: 08/11/2011 A
A B
Attachments
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 Expenses
2
2008 2009 2010 2011
239 214 246 245
112201
187 174
351
415433 420
Energy Purchase, Transmission and Connection Charges, and Water Resources
Other Costs and Expenses
2009 2010 2011 1Q11 1Q12
214 246 245
49 66
201187 174
2951
415433 420
78
117
45
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
PMS2 and other expenses (R$ million)
2009 2010 2011 1Q11 1Q12
5,125 5,490 5,689
1,359 1,535
1,3061,255 1,267
348 401
6,4316,745 6,956
1,707 1,937
PMS² and Others Expenses Total
2008 2009 2010 9M10 9M11
4,700 5,125 5,490
4,036 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
2009 2010 2011 1Q11 1Q12
700 647 622
151 185
352 443 513
126132
254 165 132
70 84
1,306 1,255 1,267
348 401
Personnel and Payroll Material and Third Party Others
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 -
started operating in
March, 2012, with 4
MW of installed
capacity
• Thermal SP - Project
of a 550MW gas fired
thermo plant
• Thermal Araraquara
- Acquisition of a
purchase option
1999 Jul/09 Oct/08 Aug/08 Sep/11 Sep/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 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
Apr/12
Lawsuit:
The Company
appealed to the
State of Sao
Paulo State Court
of Appeals and
the injunction was
kept
In March, 19th the
Company‟s appeal
was denied. Thus,
on April, 26th AES
Tietê presented
“Thermo São Paulo”
project as the plan
to fullfill the
obligation to
expand the installed
capacity.
47
Next Steps:
1 - The
appraisal
procedure (AP)
is expected to
begin by the
2nd half of 2012
2 – AP is
expected to be
concluded in at
least 6 months
3 - After AP‟s
conclusion, a
1st Instance
Court decision
will be issue
> In case of an
unfavorable
decision:
4 –Appeal to
the 2nd
Instance Court
5 - Collection
starts.
Presentation of
guaranty
6 - Request to
seize the
guaranty
7 - Appeals to
the Superior
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 two
lawsuits, which
were later merged
into one, were
initiated
Sep/03
Based on the
spin-off protocol,
he 2nd Instance
Court excluded
AES Eletropaulo
from the lawsuit
Jun/06
The SCJ annulled
the 2nd Instance
Court decision
and sent the
Execution Suit
back to the 1st
Instance Court
May/09
In accordance to
the procedure
that was
stipulated by 2nd
Instance Court
after an appeal
from AES
Eletropaulo,
Eletrobras
requested the 1st
Instance Court to
appoint an expert
Jan/98 Oct/05
Eletrobras and
CTEEP appealed
to the Superior
Court of Justice
(SCJ)
Dec/10 Sep/01
Eletrobras, after
winning the
interest
calculation
discussion, filed
an Execution Suit
aiming the
collection of the
amounts that
were in default
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
before the 1st
Instance Court
Jul/11
On July 7, the
judge determined
Eletropaulo and
CTEEP to present
their
considerations,
which occurred in
August
Shareholders agreement
48
Any party with an intention to dispose its shares should first provide the other party the right to buy
that 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
On Dec 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship as shareholders of
Brasiliana 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 along
rights
Tag along
rights
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 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:
+ 55 11 2195 7048