1Q13 Results

May, 2013

Net revenue of R$ 598 million in 1Q13, an increase of 11% compared to 1Q12

Compared to 1Q12, higher operating costs and expenses (excluding depreciation and amortization) of R$ 147

million, mainly with energy purchased for resale. Excluding this effect and the reduction of connection and

transmission charges, operating costs and expenses would be reduced by 13%, totaling R$ 84 million

Higher energy purchased in the spot market, reduced EBITDA and net profit by 21% and 25%, respectively.

EBITDA margin reached 56% in 1Q13.

1st promissory notes issuance in the amount of R$ 498 million, with cost of CDI + 0.79% and tenor up to 180 days.

The 2nd debentures issuance to be held by the Company will take out such commercial papers.

Energy generation 2% higher than the physical guarantee and 17% lower than in 1Q12

Physical guarantee reduction by 10% in 1Q13, resulting in a purchase in the spot market of 309 GWh at a cost of

R$ 115 million

Investments of R$ 27 million in the period, mainly allocated to the preventive maintenance and modernization of

Água Vermelha, Ibitinga e Nova Avanhandava power plants

Portfolio of bilateral contracts in the free market of 307 MWm, being 143 MWm sold for 2016 onwards

1Q13 Highlights

2

Operational

Financial

3

1Q13 Highlights

No accidents with own employees in the period and 100% adherence to safety lectures

No accidents in the Company’s reservoirs involving population.

Development and Communities Valorization: 18.6 thousand people benefited by the company social projects in 1Q13

Social

86% of the waste generated by the Company during the period were intended for recycling or reuse in other

production processes

Dividends distribution in the amount of R$ 204 million, R$ 0.51 per common share and R$ 0.56 per preferred share.

Payment will occur on May 27, 2013. Dividend yield of 2,8% for preferred shares Dividends

Environmental

2013 perspective

The Company is expecting the physical guarantee to be reduced by an annual average percentage that may vary

from 4% to 9% in 2013 and thermal dispatch from 9.5 GW to 13 GW, respectively. According to this scenario, the

Company would have to purchase 663 GWh to 1,163 GWh of energy in the short term market to cover the exposure

caused by such reduction in an associated cost of R$ 231 million to R$ 441 million.

Generation above physical guarantee

4

Reservoirs level of main AES Tietê’s power plants1 (%)

Energy generated (MW average2)

98%94% 96%

78%

94%

61%

93%98%

Caconde A. Vermelha B. Bonita Promissão

1Q12 1Q131 – As of 03/31/2012. 2 – Generated energy divided by the amount of hours in the period

1,599 1,582 1,629

1,753

1,480

125% 124%127%

130%

102%

2011 2012 2013 1Q12 1Q13

Generation - Mwavg Generation/Physical guarantee

Brazilian reservoirs level – historical data (%)

38

46

55

62

0

10

20

30

40

50

60

70

80

90

100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ma

x (%

)

2001 2012 2013Historical Data Since 2001

2948

26 12 1732 23 20 21

37 46

4423

51

125

193 181

118 91

119

183

280

376

260

414

215

340 320

33

93

12

jan feb mar apr may jun jul aug sep oct nov dec

2011 Série1 2013 Spot cost (R$ million)

System physical guarantee reduction resulted in

a 10% exposure to the spot market

5

375

16189 77 76 72

-21 -42

-108

-32

-308

-85

-31

Physical guarantee allocation (MW avg) Spot prince submarket SE/CO – Monthly Average (R$/MWh)

1 – Total energy purchase cost in the spot market * Spot price April: Spot price1 + ΔSpot price = Spot priceF (final Spot price).

*

2012

Secondery energy Physical guarantee reduction

6

Changes in the PLD calculating methodology:

uptrend of the free market prices

Previous

Regulation

Charged

from:

• Discos

• Free cust.

Spot

Price

ESS²

Transitory regulation

(April to July, 2013)

Other 50%

for:

• Agents

with

exposure

to spot

prices

ESS

ESS

Spot

Price

CNPE Resolution # 3/2013

From August, 2013 on

Includes out-of-the-

merit-order thermal

dispatch

Charged from

all market

agents:1 • Discos

• Free cust.

• Generators

• Traders

ESS

Spot

Price

1 - Proportional to average commercialized energy of the last 12 months.

2 - ESS (Service System Charges), which pays for the out-of-the-merit-order thermal dispatch

Resolution CNPE #3/2013:

- Methodology for adequacy of risk aversion

mechanisms for the formation of spot prices

- Service System Charges (“ESS”): prorated

among all market players (including generators)

- Risk aversion mechanisms built into pricing

models – Risk Aversion Curve of 5 years

(starting from August2013)

- Uptrend in spot prices, which should influence

prices in energy contracts representing an opportunity

to AES Tietê

156135

213

17 27

19

4

3

2011 2012 2013 (e) 1Q12 1Q13

Investments New SHPPs¹

175

21

139

Investments (R$ million) Investments in 1Q13

Investments in 1Q13 mainly directed to the modernization

of Água Vermelha, Nova Avanhandava e Ibitinga plants

7 1- Small Hydro Power Plants

28%

88%

12%

Título do Gráfico

Equipment and Maintenance IT Projects

Lower volume of energy sold in 1Q13 due

to lower sales volume in the CCEE1

8

Billed Energy (GWh)

2011 2012 4T11 4T12

11.108 11.138

3.063 2.579

1.942

3.834

403 864

1.524

1.141

332

554

615

207 194

15.126

16.728

4.008 3.696

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

58

1 - Electric Energy Trading Chamber

14%

2,879 3,058

1,256 600

571 42

163 482

4,869 4,182

1Q12 1Q13

Net Income (R$ million)

Higher volume and price of energy sold to AES

Eletropaulo and increased energy sold through other

bilateral contracts have favored the net income

9

11%

477533

46151850

1Q12 1Q13

AES Eletropaulo Spot/MRE Other bilateral

540

598

Operating costs and expenses¹ (R$ million)

Energy costs pushed the costs and

operating expenses in the 1Q13

1 - Not including depreciation and amortization 10

117 117

282 271 267 264

165

2 8 4 3

1Q12 electric energy purchased for resale

operat. Provisions and Other Exp.

personnel, material and third party services

transmission and Conection

financ. comp. for use of wat. resources

1Q13

Ebitda (R$ million)

Higher costs with energy purchased have

resulted in the decline in Ebitda and margin

11

1T13 Ebitda mainly influenced by the

higher costs of energy purchased for

resale

Excluding the effect of exposure to the

spot market, the 1T13 Ebitda would be

of R$ 449 million, with a margin of 75%

423334

78%

56%

1Q12 1Q13

Ebitda Ebitda Margin (%)

21%

12

Stable financial results between the quarters

Financial Result (R$ million)

(47)

1st debentures issuance with maturity in

2015 and rate of CDI + 1.20% p.a.

1st promissory notes issuance with

maturity of up to 180 days and rate of

CDI + 0.79% p.a.

(10) (11)

3%

156135

213

17 27

19

4

3

2011 2012 2013 (e) 1Q12 1Q13

Investments New SHPPs¹

175

21

139

246

186

107% 110%

2.9% 2.8%

1Q12 1Q13

Net Profit Payout Yield Preferred Shares

Dividends distribution of R$ 204 million in

1Q13

- R$ 0.50 per common share

- R$ 0.56 per preferred share

- Payment date : 05/27/2013

Net profit drop mainly due to the

exposure to the spot market in the quarter

Net Profit (R$ million)

13

-25%

413

676

1Q12 1Q13

Final Cash Balance (R$ million) Operating Cash Flow (R$ million)

Lower cash generation in 1Q13 mainly reflects

the increased costs of energy purchase

14

-13% 63%

382 333

1Q12 1Q13

Net Debt (R$ billion)

Gross debt / Adjusted Ebitda =< 2,5x

Net debt / Adjusted Ebitda =< 3,5x

Adjusted Ebitda / Financial Expenses => 1,75x

Debt Amortization Schedule – 1st debenture issuance (R$ million)

1T12 1T13

Average Cost (% CDI)1 115% 121%

Average Term (years) 2.0 0.8

Effective Rate 11.3% 9.8%

15

Covenants Debt Cost

1 – Percentage of CDI (Interbank Deposit Certificate)

Increase in debt balance due to

1st promissory notes issuance

0.50.76

0.3

0.50.6

1.0

1Q12 1Q13

Net Debt

Net Debt/Adjusted Ebitda

Gross Debt/ Adjusted Ebitda

300 300 300

2013 2014 2015

Debt amortization flow

0.50.76

0.3

0.50.6

1.0

1Q12 1Q13

Net Debt

Net Debt/Adjusted Ebitda

Gross Debt/ Adjusted Ebitda

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.

1Q13 Results