3Q11 R lt3Q11 ResultsNovember, 2011

3Q11 Highlights

R$ 46 million invested, mainly, in the modernization of Nova Avanhandava (347 MW), Ibitinga (132MW) and Caconde (80 MW) power plants

Energy generation higher 5% in 3Q11 and 26% in 9M11 than physical guaranteeOperational

Net revenue of R$ 519 million, 10% higher than 3Q10

Energy generation higher 5% in 3Q11 and 26% in 9M11 than physical guarantee

1% decrease in costs and operational expenses

Ebitda reached R$ 405 million, with margin of 78%

Net income of R$ 228 million increased 15% comparing to 3Q10

Finance

Net income of R$ 228 million, increased 15% comparing to 3Q10

Dividends distribution on 25th November 2011, corresponding to 108.3% of 3Q11 net income

Emission of environmental license to Project Termo SP, valid for 5 years, as of October 20th, 2011

Winner of 13º Prêmio Abrasca, for best annual report, within companies with revenues up to R$ 2

SubsequentEvents

2

Winner of 13 Prêmio Abrasca, for best annual report, within companies with revenues up to R$ 2

billion

High level of AES Tietê’s reservoirseven in the dry periody p

Reservoirs level of AES Tietê’s power plants1

58% 69

% 75%

92%

60%

58%

52% 67

%

62% 66

%

Caconde A. Vermelha B. Bonita Promissão

40%

26%

5

Barra Bonita HPP

Caconde A. Vermelha B. Bonita Promissão

3Q09 3Q10 3Q11

31 – As of 09/30/2011

Operational availability with energy generation 26% higher than physical guarantee in 9M11than physical guarantee in 9M11

Energy Generation (MW Avg.1)

129%126%

112%112%105%

1,703 1,550 1,495 1 438

9M10 9M11 3Q10 3Q11

, 1,438

41 – Generated energy divided by the amount of period hours

Generation - Mwavg Generation/Physical guarantee

Energy generated by other AES Tietê’s power plants offset the 8% reduction in generation of Água Vermelha8% reduction in generation of Água Vermelha

Energy Generation (GWh)

3Q10 3Q11

7%

9%4%

Água Vermelha

Bariri 10%

8%4%

65%4%

4%3%4%Barra Bonita

Euclides da Cunha

Ibitinga

Nova Avanhandava 62%4%3%5%

4%Nova Avanhandava

Promissão

Other Power Plants*

4%*A

5

3,302 GWh 3,174 GWh

* Caconde, Limoeiro, Mogi, SHPPs

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

3Q11 Investments

Ibitinga and Caconde power plants

Investments (R$ million)

169 89%18

82

8%3%

43 70

151

25 42

13 12

44

56 29

46

Equipment and Modernization

New SHPPs*

2009 2010 2011 (e) 3Q10 3Q11

I t t N SHPP' *

6* Small Hydro Power Plants

New SHPPs

IT projects

Investments New SHPP's*

Termo São Paulo project

Perspectives

• Project features- Combined cycle using natural gas

- Estimated investment of R$ 1.1 billion

- Natural gas consumption: 2.5 million m3/day

• Updates

- Environmental license obtained on October, 20th 2011 (valid for 5 years)

- Gas unavailability for A-5 Energy Auction in 2011

• Next events- Obtain installation license

7

- Participate in A-3 Auction expected to be realized inMarch 2012

- Evaluate sell energy in free market

Higher energy volume sold to AES Eletropaulo, spot market and other bilateral contracts in 3Q11 with reduction in billed

energy in ERM* Billed Energy (GWh)

1 135215 346

11,483 11,114

- 3%

1,554 1,535

1,135 1,188

8,578 8,045 408 110 187 341 83 145

+ 0.1%3,602 3,607

9M10 9M11 3Q10 3Q11

2,925 3,011

8

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

*ERM – Energy Reallocation Mechanism

3Q11 growth in net revenue reflecting higher volume and 8.65% readjustment in AES Eletropaulo’s contractj p

Net revenue (R$ million)

42 3926 401,334 1,344

+1%

519

+10%

1,265 1,265

498

16 710 14471

519

9M10 9M11 3Q10 3Q11

445 498

9

9M10 9M11 3Q10 3Q11

AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts

Lower energy purchased for resale and provisions contributed for the good costs performanceg p

Costs and operational expenses1 (R$ million)

3 6

5 6

3

115 113

3Q10 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

3Q11

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

p g p

3Q11 Ebitda margin reached 78%

Ebitda (R$ million)

78% 78%

76% 78%

1,035 1,048

357 405

9M10 9M11 3Q10 3Q11

357 405

11

EBITDA EBITDA Margin

Lower financial revenues from cash investments

impacting financial resultimpacting financial result

Financial Result * (R$ million)

9M10 9M11 3Q10 3Q11

(42) (42)

(14)(18)

+32%(42) (42) +32%

+0.3%

12

* Excluding non-recurring effect of R$ 42.6 million related to FURNAS in 9M10, the financial results would be R$ 84.7 million

Net income favored by revenue growth

Net Income (R$ million)

110% 110%

9% 7%

Distribution of R$ 247 million in dividends

related to 3Q11:

- R$0.62 per common share

109% 108%

$ p

- R$0.68 per preferred share

- Ex-dividends: November 11th, 2011

- Date of payment: November 25nd, 2011

3% 3%

570 582

119M10 9M11 3Q10 3Q11

199 228

13

Pay-out

1 – Pay-out referred to dividends paid in the 3Q10 in relation to the net income adjusted by the IFRS371354151161

Net incomeYield Preferred Shares

Final cash balance reflects higher revenues from AES Eletropaulo’s contractAES Eletropaulo s contract

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

+10%

547

- 29%

547 387 319 351

3Q10 3Q113Q10 3Q11

14

Stable Net Debt/EBITDA in 0.3 times

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

3.5 2.5 0,3 0,3

0,3 0,4 0,5 0,6 0,7 0,8 

0 6

‐0,1 0,2 

110% 115%0,4 0,6

3Q10 3Q11

13.1% 12.7%Effective rate

3Q10 3Q11

Net debt Net debt / EBITDA

15

Average Term - Years1

1 – Percentage of CDI

CDI

3Q11 R ltThe statements contained in this document with regard to thebusiness prospects projected operating and financial results

3Q11 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.