2Q11 Results

August, 2011

2

AES Eletropaulo bilateral contract adjusted from R$ 159,85/MWh to R$ 173,68/MWh

Dividends distribution on 22th September 2011, corresponding to 112% of net income

Went into commercial operation on July 20th, 2011, the PCH São Joaquim, with 3 MW of installed capacity, located in São João da Boa Vista (SP); the operation of PCH São José, with 4 MW of installed capacity, will take place in 2H11

Winner of 4th Abrasca Value Creation Award - Sector Highlight 2011 – Energy, as the best model for creating value between 2008 and 2010

Net revenue of R$ 409 million, 2% higher than 2Q10

2% increase in costs and operational expenses, below inflation1

Ebitda reached R$ 304 million, with margin of 74%

Net income of R$ 161 million, increased 6% comparing to 2Q10

Energy generation 41% higher than physical guarantee

R$ 34 million invested, mainly, in the modernization of the Nova Avanhandava (347 MW), Ibitinga (132 MW) and Caconde (80 MW) power plants

FinanceFinance

OperationalOperational

2Q11 Highlights

SubsequentEventsSubsequentEvents

1 – IGP-M, 8,6% for the 12 months ended in 06/30/2011

3

High level of AES Tietê’s reservoirs reflects the good rainfall level during 2Q11

1 – As of 06/30/2011

Caconde Água Vermelha

Barra Bonita Promissão

85%

85% 87

% 92%

82%

84%

85% 98

%

89% 97

%

95%

94%

Reservoirs level of AES Tietê’s power plants1

1Q09 1Q10 1Q11

Caconde HPP

4

High operational availability with energy generation 41% higher than physical guarantee in 2Q11

Energy Generation (MW Avg.1)

1 – Generated energy divided by the amount of period hours

133%

141%

Generation/Physical guarantee

118%

130%125%

2008 2009 2010 2Q10 2Q11

1,512

1,6651,599 1,640 1,604

Generation - Mwavg

5

Energy generated by AES Tietê’s power plants offset the 44% reduction in generation of Nova Avanhandava

Energy Generation (GWh)

3,582 GWh 3,503 GWh

* Caconde, Limoeiro, Mogi, SHPPs

*A60%

9%

5%

10%

5%5%3%4%

2Q10

Agua Vermelha 

Promissão 

Ibitinga

Nova Avanhandava

Bariri

Barra Bonita

Euclides da Cunha

Other Power Plants*

62%9%

6%

6%5%

5%4%4%

2Q11

6

78%

18%4%

Equipment and Modernization

New SHPPs*

IT projects

2Q11 Investments

Investments in the modernization of Nova Avanhandava, Ibitinga and Caconde power plants

Investments (R$ million)

* Small Hydro Power Plants

2009 2010 2011 (e) 2Q10 2Q11

43 70

156

15 28

13 12

13

16

57

82

169

16 34

Investments New SHPPs*

7

+ 5%CAGR

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

110 110 110 110 110 110 110 110 110 110

6 14 23 24 29 34 38 42 42 422 3 5 8 11 14 19116 124 133

136 142149 156 163 166 171

Brazil needs to add 25 GW2 up to 2020

Total = 25 GW 2

1 – Source: EPE (Ten-year Energy Plan – 2011 - in Public Hearing) 2 – Amount related to thermal power plant is an estimate of the Company

2

2

Installed Capacity – GW 1 Growth by source – new auctions

Hydro8 GW

Wind/Renewable

11 GW

Thermal6 GW2

11011011011011011011011011011061423242934384242422358111419

Current installed capacity Auctioned Upcoming auctions

8

2005 2006 2007 2008 2009 2010 2014 2020

274 277 273 321 316 384623

1,109

Opportunity to develop a gas-fired power plant project

• Opportunities Gas production - 10³ boe/day1

1 – Source: Petrobras (Estrategic Petrobras 2020 Plan)

Thermal power plant project - Thermo SP

• Next events

- 18th august 2011: Public hearing in the municipality of Lorena

- 2nd half of 2011: Power Auction realization A -5 (expected)

• Project features- Combined cycle using natural gas

- Estimated investment of R$ 1.1 billion

- Natural gas consumption: 2.5 million m3/day

- Increased natural gas production due to the activities of the pre-salt

- New Run-of-the-river (ROR) power plants create opportunities for thermal power plants

9

1H10 1H11 2Q10 2Q11

5,653 5,034

2,639 2,508

1,146 1,425

580 838

949 847

306 423

132 201

80 93

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

Higher 2Q11 volume of billed energy through CCEE and other bilateral contracts

+ 7%

3,605 3,862

7,8817,507

- 5%

Billed Energy (GWh)

10

1Q10 1Q11 2Q10 2Q11

820 768

383 382

26 32

10 15

17 26

10 12

Growth in net revenue, reflecting sales volume of CCEE and other bilateral contracts

Net revenue (R$ million)

+ 2%

- 4%863

826

403 409

AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts

11

2Q10 Personnel, Material and Outsourced

Services

Financ. Comp. for Use of Water

Res. and Transmission

and Connection

Energy Purchased for

Resale

Operational Provisionsand Other

Operating Exp

2Q11

102 105

1 1 9 8

Increased costs with PMSO2 below inflation

Costs and operational expenses1 (R$ million)

1 – Do not include depreciation and amortization 2 – PMS = Personnel, Material and Outsourced Services

12

Ebitda (R$ million)

2Q11 Ebitda margin stable in 74%

79% 78%

1H10 1H11 2Q10 2Q11

678 643

300 304

EBITDA

75% 74%

EBITDA Margin

13

(28)* (24) (28)(13)

-

Financial result benefited by exchange of debt in May, 2010

- 53%-15%

1H10 1H11 2Q10 2Q11

Financial Results (R$ million)

* Excluding non-recurring effect of R$ 42.6 million related to FURNAS, the financial results would be R$ 71.0 million

14

Net income favored by revenue growth and good performance of the financial result

Pay-out

11

1 – Pay-out referred to dividends paid in the 2Q10 in relation to the net income adjusted by the IFRS

Net Income (R$ million)

Distribution of R$ 179.5 million in dividends

related to 2Q11:

- R$0.45 per common share

- R$0.49 per preferred share

- Ex-dividends: August 12th, 2011

- Date of payment: September 22nd, 2011

371354151161Net incomeYield Preferred Shares

111% 111%

6% 4%

114% 112%

2% 2%

1H10 1H11 2Q10 2Q11

371 354

151 161

15

- 37%-14%

Final cash balance reflects the bilateral contract’s seasonality and increase in investment program

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

2Q10 2Q11

344 297

2Q10 2Q11

455 286

16

2Q10 2Q11

111.9% 112.8%

3.8 2.8

13.9% 14.3%Effective rate

1

Stable debt, debentures maturing at the end of 2015 and nominal cost of CDI + 1.20% per year

Net Debt (R$ billion) Average Cost and Average Term (Principal)

1 – Percentage of CDI

0.4x0.5x

‐0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 

Net debt / EBITDA

2Q10 2Q11

0.5 0.6

Net debt

Average Term - Years CDI

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.

2Q11 Results