1Q11 Results

May, 2011

2

FinancialFinancial • Ebitda amounted R$ 549.1 million in 1Q11, 10.2% higher than 1Q10

• Net income amounted R$ 281.9 million in 1Q11, 26.5% higher than 1Q10

1Q11 Highlights

OperationalOperational • Higher energy consumption: captive market 6.3% and free market 12.6%

• Losses: reduction of 0.7 p.p. when compared to 1Q10

• SAIDI was reduced by 22% and SAIFI by 14% in the last 12 months (March basis)

• Investments with own resources of R$ 151.7 million, 72.2% higher than 1Q10

RegulatoryRegulatory • Expectation of disclosure of the methodology of the tariff revision should take place after July 4, 2011, with the consequent postponement of the implementation of the 3rd cycle for Eletropaulo

• The new tariff will come into force within 180 days after approval of the methodology of the 3rd cycle (from December 2011)

31 – Own Consumption not considered

Market growth driven by the performance of residential, commercial and free clients

Consumption Evolution (GWh)¹

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

3.646

1.449

2.804

645

8.544

1.813

10.357

3.999

1.422

2.967

690

9.078

2.041

11.119

1Q10 1Q11

+9.7% -1.9% +5.8% +7.0% +6.3% +12.6% +7.4%

4

Losses - (%)

1 – Current technical losses used retroactively as a reference

Losses level reflects the continuing efforts of operational improvements

¹

Collection rate (% over Gross Revenues)

2008 2009 2010 1Q10 1Q11

98.5 101.1102.4 102.5 99.6

2008 2009 2010 1Q10 1Q11

6.5 6.5 6.5 6.5 6.5

5.1 5.3 4.4 5.0 4.3

11.6 11.810.9 11.5 10.8

Commercial Losses Technical Losses

5

SAIDI downward trend reflects Company’s continuous investments

SAIDI – System Average Interruption Duration Index

Source: ANEEL e AES Eletropaulo

8.909.20

11.9012.45 12.74 12.66 12.72 12.39 12.22 12.09 11.79 11.65

11.2510.84 10.60

10.18 10.309.91

16.0816.63

18.70 19.00 19.00 19.00 19.00

20.00

22.00

21.00 21.00 21.00 21.00

18.00 18.00

19.00 19.00

11.34 10.92

10.099.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32

8.68 8.68 8.68

AES Eletropaulo Brazil Aneel Target - AES Eletropaulo

6

Tree trimming plan contributed to the good SAIFI performance

Source: ANEEL and AES Eletropaulo

SAIFI – System Average Interruption Frequency Index

5.655.20

6.17 6.34 6.41 6.29 6.29 6.16 6.12 6.12 5.96 5.855.61 5.52 5.42 5.30

5.55 5.44

11.7211.34

11.7412.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

11.00 11.00 11.00 11.00

8.49 8.41

7.877.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39

6.93 6.93 6.93

AES Eletropaulo Brazil Aneel Target - AES Eletropaulo

7

CAPEX (R$ million)

1Q11 Capex of R$ 156 million, 59% higher than 1Q10

1Q11 Investments (R$ million)

0 

100 

200 

300 

400 

500 

600 

700 

800 

2009 2010 2011(e) 1Q10 1Q11

410

654 684

88 152

47

28 36

105

457

682 720

98156

Capex Paid by Customers

57

37

37 9

8 5 3

Maitenance

Customer Service

System Expansion

Losses Recovery

IT

Paid by the Clients

Others

8

1Q10 1Q11

2,151 2,259

109 164 1,172 1,310

Net Revenue

Construction Revenue

Deduction to Gross Revenue

Gross Revenue (R$ million)

Net revenues increase (+9%) due to market growth (+6,3%) and tariff readjustment (+1,6%)

+9%3,4323,733

9

Energy purchase cost stable due to exchange rate and losses reduction

Operating Costs and Expenses ¹ (R$ million)

+3%

1Q10 1Q11

1,323 1,359

342 348

1,665 1,707

Energy Supply and Transmission Charges

PMS² and Others Expenses

1 - Depreciation and other operating income and expenses are not included 2 - Personnel, Material and Services

10

PMS and other expenses(R$ million)

Increase on one-off expenses was offset by lower contingencies expenses

1 – One-off itens: profit sharing adjustment, SAIDI reduction plan, consulting for sinergy gains, IT projects (SAP and collection improvement) and EMTU and SPTrans agreements honoraries.

1Q10 Personnel and payroll

FCesp Material and third party

ADA and write-off,Prov. and Conting.

and OtherExpenses

One-offitens¹

1Q11

342 342351 351

305 305

348

22 (14)6 (49)

41

11

Ebitda (R$ million)

Market growth and lower contingencies expenses contributed to Ebitda increase

1Q10 Net rev.(ex-constr.

rev.)

En. purchaseand trans.

usagerate exp.

Personnel and payroll

Fcesp Provisions and contingencies

ADA and write-off

Material, third party and

others

Other 1Q11

498 498572 540 540 554 593 566 549 549

109 (35)(31) 14

39 17 (44)(17)

12

Financial Results (R$ million)

Higher cash balance and guarantees reduction positively contributed to the financial result

(33)

(2)

1Q10 1Q11

+94%

13

Higher net income as a result of good market and financial performances and PMSO stability

Net Income (R$ million)

+26%

1Q10 1Q11

223282

14

+19%- 19%

Operational cash generation reflects collection rate of 102.5% in 1Q10 and 99.6% in 1Q11

1Q10 1Q11

572463

Operational Cash Generation (R$ million)

1Q10 1Q11

1,470

1,748

Final Cash Balance (R$ million)

15

Average Cost and Average Term (Principal)Net Debt

Refinancing contributed to debt cost reduction

1

1 - Last 12 months of EBITDA Adjusted 2 – Brazil’s Interbank Interest Rate percentage

Net Debt/Ebitda Adjusted with Fcesp

1Q10 1Q11

2.4 2.4

Net Debt (R$ billion)

1.1x

0.9x

6.9 6.9

Average Term - Years

1Q10 1Q11

120.5% 108.2%

CDI²

14,5% 13,9%Efective rate

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.

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1Q11 Results