3Q12 R lt3Q12 Results

November 2012November, 2012

3Q12 Highlights

Power generation 22% higher than the physical guarantee and 10% higher than 3Q11

Investments of R$ 31 million for the modernization program of Nova Avanhandava (347 MW), ÁguaVermelha (1,396 MW) and Ibitinga (132 MW) power plants

OperationalOperational

( , ) g ( ) p p

In 3Q12, the Company sold 168 MWa through bilateral contracts, with a total portfolio of 259 MWa,of which 227 Mwa were sold in 2012

Bilateral contract price with AES Eletropaulo adjusted from R$ 173.68/MWh to R$ 182.61/MWh

Net revenue of R$ 543 million, an increase of 4.7% compared to 3Q11

Sale of AES Minas SHPP completed on August 31, 2012 with a contribution of R$ 10 million in

FinancialFinancial

Sale of AES Minas SHPP completed on August 31, 2012 with a contribution of R$ 10 million inEbitda

Ebitda reached R$ 423 million, with margin of 78%

Net income of $ 244 million an increase of 7% when compared to 3Q11 Net income of $ 244 million, an increase of 7% when compared to 3Q11

EventsEvents• Dividends distribution in the amount of R$ 253.8 million related to the 3Q12 results - R$ 0.63 per common share and R$ 0.70 per preferred share. Payment will occur on November 22nd, 2012

2

• Award Winner "Best Companies for Shareholders in 2012" by Capital Aberto magazine

MP 579: Context

AES Tietê is not affected by the rules of the MP 579 and has a valid concession until 2029

Aims to reduce tariffs by 20% (Residential: 16.2% and industrial from 20% to 28%), as from February 2013, through:

- Reduction Sector Charges (RGR, CCC and CDE): - 7%

ObjectiveObjective

Possible pressure of higher prices on the free market in the short term

- Renewal of Generation and Transmission concessions: - 13%

O t itiO t iti Possible sale of electricity to generators whose concessions are expiring, to cover contracts set in the free market for the period 2015-2017

OpportunitiesOpportunities

Uncertainty related to the indemnification at the end of the concessionRisksRisks

3

Higher PLD favoring revenue in the spot market

Reservoirs Level inSIN1 PLD2 submarket SE/CO – Monthly Average (R$/MWh)

94%430

65%60%

52%48% 45% 43%

51%

132  138 

117 125

193181

118 119

183

280

235

Southeast/  South Northeast North

13  14 

28  22  32 68  72 

2948

26 12 17

32 23 20 2137 46

4423

5191

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

2010 2011 2012/Middle‐West

3Q11 3Q12

2010 2011 2012

41- Interconnected National System2- Spot Market Average Price

Generation remains above the physical guarantee even with the reservoirs level reduction

Reservoirs level of AES Tietê’s power plants1 Energy generation (MW average3)

130%

125% 124% 122%

% % %

105%67%

66%

62%

52%

53%

66%

40%

1,665 1,599 1,582 1,438

1,585

22%

CacondeA. Vermelha B. BonitaPromissão(11.0 km 2) (3.6km 2)(8.1 km 2) (0.6 km 2)

2009 2010 2011 3Q11 3Q12

Generation - Mwavg Generation/Physical guarantee3Q11 3Q12

55

62% 45%Average:

1 – As of 09/30/2012

2 – Reservoirs volume3 – Generated energy divided by the amount of hours in the period

Investments in 3Q12 mainly allocated to the modernization of Nova Avanhandava, Água Vermelha,

Investments (R$ million) Investments in 3Q12

Ibitinga and Limoeiro power plants

19

175 90%

15612

82

16746

7042 31

124

4610%

2010 2011 2012(e) 3Q11 3Q12

Investments New SHPPs*

Equipment and Maintenance

6* Small Hydro Power Plants

IT Projects

Higher billed energy in 3Q12 due to an increase in energy sold in ERM1

Billed Energy (GWh)

11 11813,032

+17%

1 4252,182 851

911 201 297 11,118

3 608 3 970+10%

5,034 5,672 3,011 2 887

1,425

110 788 342 172 145 123

3,608 3,970

9M11 9M12 3Q11 3Q12

3,011 2,887

71- ERM – Energy Reallocation Mechanism

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

Strategy for energy contracting in 2016: composition of client portfolio

Clients portfolio evolution in 2012

client portfolio

• Goals:

- 2011 / 2012: commercial

259

initiatives to expand client

portfolio in the free market

32 84 90

259

- The current portfolio comprises

259 MWa, of which 227 Mwa

Before dec/2011

1Q12 2Q12 3Q12 were sold this year and 87

MWm were sold to 2016

onward.

8

Mwavg

Higher prices in the spot market, larger volume of energy sold in ERM and readjustment in the bilateral contract with AES

Eletropaulo contributed for the net revenue growth

Net revenue (R$ million)

+20% 1,618

+5%399140

821,344

1.265 1.4387 17

14 16

519 543

9M11 9M12 3Q11 3Q12

498 502

9

AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts

PMSO lower than inflation in the period

Operational costs and expenses¹ (R$ million)

10 (10) 0,5 2 1 3

113 113 123 113 113 113 116 117 120

Energy Purchased Financ. Comp. For Transmission and 3Q11 3Q12Operating SHPP Personnel, 3Q11 +gyfor Resale Use of Water Res.Connection

3Q12allowances and other expenses

Material and Third-party

services

3Q11 Energy

Purchased

101 – Do not include depreciation and amortization2 – Personnel, Material and Third-party services

Ebitda 4% higher with margin of 78%

Ebitda (R$ million)

78%77%

78% 78%

1,048 1,250

9M11 9M12 3Q11 3Q12

405 423

11

Ebitda Ebtida Margin (%)

Better financial result influenced by lower financial expensep

Financial Result (R$ million)

3Q11 3Q129M11 9M12

-18 -12

-42 -38

-31%

12

-9%

Net income 6.9% higher due to increased spot prices, bilateral contract with AES Eletropaulo readjustment and costs p j

controlNet Income (R$ million)

110%107% 108%

104%

Dividend distribution of R$ 253.8 million related to 3Q12:

7.5% 7.9%3.0% 3.1%

- R$ 0.64 per common share

- R$ 0.70 per preferred share

- Ex-dividends: November 07, 2012582720

- Payment date: November 22, 2012

9M11 9M12 3Q11 3Q12

228 244

13

Q Q

Net Profit

Payout

Yield Preferred Shares

Cash flow reflects higher revenue from spot marketand bilateral contract with AES Eletropaulo

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

+24% +1%

351435 387 392

3Q11 3Q12 3Q11 3Q12

14

Low leverage with Net debt/Ebitda ratio of 0.3

Net Debt (R$ billion) Debt Amortization Schedule (R$ million)0.7x

0.6x0.3x 0.3x

300 300 3000.57 0.55

2013 2014 2015

Net Debt/Ebitda

3Q11 3Q12

Net Debt

Gross debt/Ebitda of 2.5x

Ebitd /Fi i l f 1 75

3Q11 3Q12

Average Cost (% CDI)1 115% 121%AvarageCostAvarageCost

Gross Debt/Ebitda

CovenantsCovenants Ebitda/Financial expenses of 1.75x Average Term (years) 2.5 1.5

Effective Rate 12.7% 9.7%

151 – Percentage of CDI (Interbank Deposit Certificate)

3Q12 R ltThe statements contained in this document with regard to thebusiness prospects projected operating and financial results

3Q12 Results

business prospects, projected operating and financial results,and growth potential are merely forecasts based on theexpectations of the Company’s Management in relation to itsfuture performance.Such estimates are highly dependent on market behavior andSuch estimates are highly dependent on market behavior andon the conditions affecting Brazil’s macroeconomicperformance as well as the electric sector and internationalmarket, and they are therefore subject to changes.