4Q12 R lt4Q12 Results

February 2013February, 2013

2012 Highlights

Power generation 27% higher than the physical guarantee and 3% higher than 2011

- 4.4% exposure to the spot market from September to December, 2012 due to the lowering of physicalOperationalOperational

p p p , g p yguarantee, resulting in major cost with energy purchase

Investments of R$ 139 million mainly focused on power plant’s modernization, especially Nova Avanhandava andIbitinga

288 MWavg of energy sold through bilateral contracts in the free market totaling a portfolio of 320 MWavg

Net revenue of R$ 2,112 million, an increase of 12% compared to 2011

Increase of 15% in 2012 operating costs1 and expenses mainly with materials and outsourcing

288 MWavg of energy sold through bilateral contracts in the free market, totaling a portfolio of 320 MWavg

FinancialFinancial Increase of 15% in 2012 operating costs and expenses, mainly with materials and outsourcing

Ebitda reached R$ 1,542 million, with margin of 73%

Net income of R$ 901 million, an increase of 7% in comparison with 2011

The Energy Costs Reduction Program regulated on September 11th, 2012, through the PM 579, that wasconverted into the Law No. 12,783, on January 14th, 2013

RegulatoryRegulatory

21 – Excludes costs with energy purchase and the non recurring effects related to the sale of PCH Minas and the receipt of claim in Nova Avanhandava

P l f di t ib ti f l t di id d i th t f R$ 182 illi R$ 0 46 h

2012 Highlights

Proposal of distribution of complementary dividend in the amount of R$ 182 million, R$ 0.46 per common shareand R$ 0.50 per preferred share, to be submitted to the 2013 General Shareholders Meeting

Ratify the interest on own capital payment in the amount of R$ 26 million, R$ 0.06 per common share and R$0.07 per preferred share, to be submitted to the 2013 General Shareholders Meeting

P t f 108% i 2012

DividendsDividends

Safety: no accidents involving own employees

- 50% drop in the number of accidents involving the outsourced employees, being five accidents with no

- Payout of 108% in 2012

SocialSocialabsence. Since February 2009, there were no accidents in the Company’s reservoirs involving the population.

Communities Development and Valuing: social private investment of R$ 12.8 million in education, culture, sportsand inclusive professional training, benefiting around 148.500 people

National Quality Award – PNQ 2012 of Fundação Nacional da Qualidade – FNQ

Efficient usage of natural resources in 2012: water consumption in the AES Tietê’s units came to 57,700 m³,down 56.5% from 2011.EnvironmentalEnvironmental

National Quality Award PNQ 2012 of Fundação Nacional da Qualidade FNQ

Award “Best Company for Shareholders in 2012” of Capital Aberto magazine

Participation in the 2012/2013 Corporate Sustainability Index (ISE) portfolio, from the BM&FBovespa, for the 6th

consecutive year

AwardsAwards

3

International Certification PAS-55 of assets reliability and maintenance for companies of the Society forMaintenance & Reliability Professional

Guia Exame de Sustentabilidade: AES Brasil group was recognized, by Exame magazine, as one out of twentymodel companies in sustainability

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

Reservoirs level of main AES Tietê’s power plants1 Energy generated (MW average2)

130% 127%

62%67

%

125% 124%127%

48%

33%

49%

6

48%

39%

1,665 1,599 1,582 1,629 3

16%

2009 2010 2011 2012

, 1,582

A. Vermelha Promissão B. Bonita Caconde

2011 2012 Generation/Physical guarantee

2009 2010 2011 2012

Generation - Mwavg

1 – As of 12/28/2012. 2 – Generated energy divided by the amount of hours in the period

4

Exposure to higher spot prices marked the 4Q12

PLD submarket SE/CO – Monthly Average (R$/MWh)Physical Guarantee Allocation (MW avg)

376 

45 

23 295

318375

193 181 183

280 260 

2 

6 161

89 77 76 72

13  14 

28  22  32 68 

132 138 

117 

72 29  48 

26 12 

17  32  23  20  21  37  46  44 23  51 

125 

181 

118 91 

119 183 

-21 -42-108

-32

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

Secondary energy Lowering physical guarantee2010 2011 2012 Spot cost (R$ million)

51 – Total energy purchase cost in the spot market

2012 investment mainly focused on power plant’s modernization, especially Nova Avanhandava

Investments (R$ million) 2012 Investments

p yand Ibitinga

19

175 139 89%

156200

3

56 66156 139

51 66

53%8%

2011 2012 2013 (e) 4Q11 4Q12

I t t N SHPP *

Equipment and Maintenance

New SHPPs*

6* Small Hydro Power Plants

Investments New SHPPs* IT Projects

Higher volume of billed energy in ERM1 and other bilateral contracts, with reduction of billed

16,728

energy in the spot market in 2012Billed Energy (GWh)

11%

1,524

1,141 554

615 15,128 11%

1,942 3,834

,

-8%

11,108 11,138

332207 194

4,006 3,696

58

-8%

2011 2012 4Q11 4Q12

3,063 2,579

403 864 332 58

2011 2012 4Q11 4Q12

1 - ERM – Energy Reallocation Mechanism 7

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

Formation of clients portfolio

Clients portfolio evolution in 2012

• Goals 2011/2012: commercial

initiatives to expand clients

portfolio in the free market

• The current portfolio comprises 259

320 320 Mwavg, of which 288 MWavg

were sold in 2012

• 143 Mwavg were sold to 2016 3284 90

259

onwardBefore

dec/20111Q12 2Q12 3Q12 4Q12

32

Mwavg

8

Readjustment of 5% in the bilateral contract with AES Eletropaulo and higher spot prices

Net revenue (R$ million)

contributed to the net revenue growth in 2012

12%

1 886 2,112

-9%547859

1431,886 2,112

1,773 1,89119 19

542 494

2011 2012 4Q11 4Q12

508 44915 25

19 19

AES Eletropaulo Spot/MRE Other bilateral9

2011 2012 4Q11 4Q12

Expenses with energy purchased for resale pressured costs in 2012

Operational costs and expenses¹ (R$ million)

resale pressured costs in 2012

113 10 5 16 23 9 5

420556 565 570

2011 Energy purchased for

PCH Minas Claim in Nova Avanhandava

Operating allowances

Personnel, material and

Transmission and

Financ. Comp. for use of

2012

1 – Do not include depreciation and amortization; 10

purchased for resale

Avanhandava allowances and other expenses

material and outsourcing

and connection

for use of water res.

Ebitda growths 5%, with margin of 73% due to thereadjustment on the bilateral contract with AES Eletropaulo

Ebitda (R$ million)

and higher costs of energy purchased for resale in 2012

78% 4Q12 Ebitd i fl d b th73% 77%59%

• 4Q12 Ebitda influenced by the

cost of energy purchased for

resale.

E l di th ff t f th

1.466 1.542

419 292

• Excluding the effect of the

exposition to the spot market, the

4Q12 Ebitda would be of R$ 336

illi ith i f 68 1%

Ebtida Margin (%)

2011 2012 4Q11 4Q12

292

Ebitda

million, with margin of 68.1%

11

Better financial result influenced basically by the drop of the CDI1 and lower expenses p p

with monetary variation in 2012

Financial Result (R$ million)

4Q11 4Q122011 2012(4 3) (4 0)

• 1st emission of debenture maturing in

-8%

(47) (42)

(4.3) (4.0)g

2015 attached to the CDI + 1.20%

• Cash and cash equivalents: short-

term operations, with average return p g

of 102% of CDI in 2012

-9%

121 – Brazilian interbank interest rate

Net Income 7% higher in 2012, due to the readjustment of the bilateral contract with

AES Eletropaulo and better financial results

Net Profit (R$ million)

Proposal of dividends distribution in the amount of R$ 182 illi l t d t th 4Q12

110%108% 108%

104%

R$ 182 million related to the 4Q12:

- R$ 0.46 per common share

- R$ 0.50 per preferred share

11% 12%

3% 3%

- estimated payment date: May 7, 2013

845 901

2011 2012 4Q11 4Q12

263 181

Pay-out13

Yield Preferred Shares

Net Profit

2012 cash generation reflects higher revenue with the bilateral contract with AES Eletropaulo

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

and CCEE (spot + ERM)

+22% -11%-10%

-7%-11%

1.3501.643

404 359

442 397

2011 2012 4Q11 4Q12

404 359

2011 2012

14

Net debt/Ebitda stable in 0.3 times

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

0,63 0,61

0,3x 0,3x

0,48 0,52

300 300 300

2011 2012 2013 (e) 2014 2015

2011 2012

Average Cost (% CDI)1 115% 128%

Debt costDebt costNet Debt/EbitdaNet Debt

Gross Debt/Ebitda

Debt amortization flow (R$ million)

Gross debt/Ebitda of 2.5x

Ebitda/Financial expenses of 1.75x

g ( )

Average Term (years) 2.3 1.3

Effective Rate 12.1% 9.8%15

CovenantsCovenants

1 – Percentage of CDI (Interbank Deposit Certificate)

4Q12 R ltThe statements contained in this document with regard to thebusiness prospects projected operating and financial results

4Q12 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.