2010 Results

March, 2011

2

Energy generation 25% higher than physical guarantee Beginning of modernization program at Nova Avanhandava (347 MW), Ibitinga (132 MW) and Caconde (80 MW) power plants

FinancialFinancial

OperationalOperational

2010 Highlights

Bilateral contract annual adjustment of 5.17% in July, 2010; energy price increased to R$159.85/MWh

Ebitda reached R$1.3 billion, with margin of 75% 1st debenture issuance in the amount of R$900 million enabled debt exchange, resulting in savings of R$ 41 million Financial results positively impacted by R$ 43 million due to favorable decision on legal dispute with Furnas

Increase of 4% in net income, reaching R$ 737 million

3

• Proposal for complementary dividends distribution and interest on equity totalizing

R$ 234.6 million, composed by R$ 0.59 per ordinary share and R$ 0.65 per preferred

share, to be approved on the OGSM, to be held on April 29, 2011‐ Pay-out of 117% in 2010

SubsequentsEventsSubsequentsEvents

CorporateGovernanceCorporateGovernance

Maintenance of AES Tietê on ISE (“Corporate Sustainability Index of BM&FBovespa”) portfolio for the 4th consecutive year

AwardAward 6th best company to invest - Distinction Award Agência Estado

Empresas 2010

2010 Highlights

4

86%

14%

Reservoirs Level

La Niña effect has contributed to lower water inflow and lower hydroeletric dispatch when compared to 2009

Water Inflow (LT Average) Hydroelectric and Thermal generation (SIN)

2010

2009

94%

6%

86%

14%

Hydroeletric Thermal

Southeast South Northeast North

56

%

75

%

35

% 45

%

70

%

97

%

59

%

54

%

45

%

72

%

45

%

40

%

2008 2009 2010

Southeast South Northeast North

14

6%

14

6%

59

%

70

%

15

8%

17

0%

110

%

12

3%

10

5%

114

%

82

%

78

%

2008 2009 2010

5

Reservoirs level of AES Tietê’s power plants (In December, 31)

AES Tietê’s power plants’ reservoirs ended 2010 similar to 2008 and historical average, but lower than 2009, which was an extraordinary year

HPP Euclides da Cunha

6

Maintanance of high operational availability with generated energy 25% higher than physical guarantee in 2010

Energy Generation (MW Avg.1)

1 – Generated energy divided by the amount of period hours

111%

121%

118%

130%

125%

Generation / Physical Guarantee

2006 2007 2008 2009 2010

1,425

1,5451,512

1,6651,599

Generation - MWAvg

7

Higher volume of energy sold through bilateral contracts compensating the reduction in the MRE volume

Billed Energy (GWh)

0.2%

- 14 %

2009 2010 4Q09 4Q10

11,108 11,108

2,587 2,530

2,331 1,980

691 426

1,150 1,340

448 204

117 301

62 86

14,706 14,729

3,788 3,246

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts Total

2009 2010 4Q09 4Q10

11,108 11,108

2,587 2,530

2,331 1,980

691 426

1,150 1,340

448 204

117 301

62 86

14,706 14,729

3,788 3,246

8

Investments1 (R$ million) 2010 Investments

Planned modernization at Nova Avanhandava, Ibitinga and

Caconde power plants in 2010 and 2011

1 - Do not include capitalization of interests during plants modernization and development of projects 2 - Small Hydro Power Plants

79%

14%

6%

1%

Equipment and Maintenance

New SHPPs

IT projects

Environment

2009 2010 2011 (e) 4Q09 4Q10

43

70

152

21 24

13

12

6

3 4

57

82

158

24 29

Investments New SHPPs Total2009 2010 2011 (e) 4Q09 4Q10

43

70

152

21 24

13

12

6

3 4

57

82

158

24 29

Investments New SHPPs Total2

9

Start of the

EIA/RIMA filed at

CETESB

Environmental license

issuance

New energy auction date

Beginning of the project

presentation to the

community

2010 2011 2012 2015 2016

• Preparation of basic project

• Land acquisition

Commercial operation

date

Operational license

Environmental license issuance

JAN FEB MAR APR MAY JUN AUGJUL SEP OCT NOV DEC

Instalation license

Thermo SP: Expansion of 550MW in installed capacity

Public hearing

Expected timeline

10

Net Revenues (R$ million)

5% increase in net revenues due to a greater price of bilateral contract with AES Eletropaulo and higher amount of energy sold through other

bilateral contracts

5%

7%

2009 2010 4Q09 4Q10

1,599 1,651

375 386

61 66

14 24

10 37

4 10

1,670 1,754

393 421

AES Eletropaulo Spot/MRE Other bilateral contracts Série4

2009 2010 4Q09 4Q10

1,599 1,651

375 386

61 66

14 24

10 37

4 10

1,670 1,754

393 421

AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts Série4

11

2009 2010 4Q09 4Q10

214 246

55 73

179180

88 66

22 8

21

(4)

Compra de Energia, Transmissão e Conexão Recursos Hídricos

Outros Custos e Despesas

Provisões Operacionais

2009 2010 4Q09 4Q10

Costs and operational expenses1(R$ million)

1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses

5% growth in costs and expenses due to higher expenses with energy purchased for resale and maintanance of power

plants and locks in 2010

2009 2010 4Q09 4Q10

214 246

55 73

179180

88 66

22 8

21

(4)

Energy Purchase, Transmission and Connection Charges, and Water Resources

Other Costs and Expenses

Operational Provision

5%

-18%

2

415 434

164135

12

2009 2010 4Q09 4Q10

1,255 1,320

229 286

EBITDA

75% 75%

58% 68%

Margin Ebitda

Ebitda (R$ million)

5%

25%

Ebitda margin was kept on 75% in 2010

13

(28)

(57)

(14) (15)

Financial Results (R$ million)

Higher IGP-M until April, 2010 impacted the financial results;

debt exchange resulted in savings of R$ 41 million

2009 2010 4Q09 4Q10

107%

10%

14

IFRS impacts (R$ million)

IFRS adoption positively contributed for

Company’s dividends basis in 2010

Net income before IFRS

adoption

Depreciation Use of public assets and Personnel

Deferred taxes IFRS Net income

Opening balance

adjustments as of 01.01.09

Adjustments related to 2009

Realization of equity

valuation adjustment

Dividends basis

815 (115)

(3)

40 737

37 (74)

162 862

15

2009 2010

615 565

2009 2010 4Q09 4Q10 2009 2010

706 737

125 167

636 628

144235

110% 117%

11% 11%

Pay-out Yield PN

-8%

Net income (R$ million) Final Cash Balance (R$ million)

Net income of R$ 737 million, with a pay-out of 117%

4%

34%

16

DebenturesNet Debt (R$ billion)

Amount: R$ 922 million Maturity: April 2015 CDI + 1.20% p.a. Biannual basis interest payment Annual amortization and equal

installments in the 3rd, 4th and 5th years

Net Debt / Ebitda ratio stable in 0.3x

0.3x 0.3x 0.3x

Net debt / EBITDA

2008 2009 2010

0.4 0.4 0.4

Net debt

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.

2010 Results