1Q12 Results

May, 2012

2

Net revenue of R$ 540 million, 30% greater than 1Q11

R$ 20 million increase in expenses with energy purchased for resale and biannual locksmaintenance and R$ 19 million increase in costs and operational expenses

Ebitda reached R$ 423 million, with margin of 78%

Net income of R$ 246 million, an increase of 27% comparing to 1Q11

Investments totaled R$ 21 million, mainly in the modernization of Nova Avanhandava (347 MW) and

Ibitinga (132 MW) power plants

Energy generation 30% higher than physical guarantee and 10% greater than the total generated in

1Q11

1Q12 Highlights

Dividends distribution of R$ 264 million, related to 1Q12 results, corresponding to R$ 0.66 per

common share and R$ 0.73 per preferred share. Payment will occur on May 25, 2012.Dividends

Operational

Financial

3

Reservoirs Level inSIN1 PLD2 – Monthly Average (R$/MWh)

Despite the comfortable reservoir levels in SIN1 , lower rainfall in February, March and April pushed prices in the spot

market

1- Interconnected National System2- Spot Market Average Price

Southeast/ Middle-West

South Northeast North

83%92%

76%

99%

79%

35%

82%

99%

1Q11 1Q12

29

48

2612 17

32 23 20 2137

46

44

23

51

125

193

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

2010 2011 2012

A. Vermelha Promissão B. Bonita Caconde

99%

100%

90% 99

%

94%

78%

96%

98%

1Q11 1Q12 Generation/Physical guarantee

Generation - Mwavg

1 – As of 03/31/2012

4

Reservoirs level of AES Tietê’s power plants1 Energy generation (MW average3)

High level of Company’s reservoirs and operational availability

2 – Reservoirs volume3 – Generated energy divided by the amount of period hours

A. Vermelha2 B. Bonita2Promissão2 Caconde2

(11 km3) (3.6km3)(8.1km3) (0.6km 3)

Average: 98% 89%

136%

130%

130%

125% 124%

2009 2010 2011 1Q11 1Q12

1,6651,599 1,582 1,612

1,753

5

Investments in 1Q12

Investments in 1Q12 mainly oriented to the modernization of Nova Avanhandava and Ibitinga power plants

Investments (R$ million)

1 - Small Hydro Power Plants

86%

11%3%

Equipment and Maintenance

New SHPPs

IT Projects

2010 2011 2012(e) 1Q11 1Q12

70

156

34 19

12

19

42

82

175

174

3821

Investments New SHPPs1

6

Growth Opportunities and Capacity Expansion Obligation

Termo-SP Project

- Gas unavailability for A-5 in 2011 and A-3 Energy Auction in 2012

- Project registered in A-5 in 2012: term to present gas contract expires on June 1st, 2012

- Injunction suspending the Environmental License. AES Tietê presented its defense on April 27th

- Fullfillment of conditions to obtain the installation license

- April 26th: Presentation of the plan to extent the Company’s capacity

Termo Araraquara Project

- Acquisition of a purchase option in March, 2012

- Combined cycle, gas-fired power plant, with 579 MW of installed capacity

- The project has a high sinergy potential with Termo SP and is equally registered in A-5 auction in 2012

Expansion Obligation

1Q11 1Q12

2,526 2,879

587

1,256 424

570

108

162 3,645

4,867

7

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

Higher energy volume sold in 1Q12 due to the seasonality ofthe bilateral contract with AES Eletropaulo, besides the

energy sold in ERM* Billed Energy (GWh)

*ERM – Energy Reallocation Mechanism

*

+34%

Clients portfolio evolution

2012 2016 2020

Assured Energy (1,282 MW avg)

• Goals:

- Expand and diversify client portfolio by

2015

- Allocate most of the assured energy to

the free market

- Opportunity to negotiate the energy

from projects that the Company will

develop in coming years

New clientportfolio

Consolidatedportfolio

Strategy for energy contracting in 2016: client portfolio creation

1Q11 1Q12

385477

14

1817

46416

540

9

Changes in the seasonality and 8.65% readjustment in AES Eletropaulo’s contract contributed for the net revenue

expansionNet revenue (R$ million)

+30%

AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts

10

Operational costs and expenses¹ (R$ million)

1 – Do not include depreciation and amortization2 – Personnel, Material and Third-party services

1Q11 Energy Purchased for Resale

Locks Maintenance

Operational Provisions and Other Expenses

Personnel, Material and Third-party services²

Transmission and Connection

Financ. Comp. For Use of Water Res.

1Q12

78

114 117

119

75 4 3

Increase in expenses with energy purchased and biannual locks maintenance, besides the increase in operational

costs and expenses

11

Ebitda (R$ million)

Ebitda margin reached 78% in 1Q12

81% 78%

EBITDA Margin (%)1Q11 1Q12

338423

EBITDA

(11) (10)

12

Financial Result (R$ million)

1Q11 1Q12

CDI* variation and lower average cash balance impacted financial result

*CDI - Interbank Deposit Certificate

13

Net income 27% higher in 1Q12, reflecting the good performance of revenues

Net Income (R$ million)

Distribution of R$ 264 million in dividends related to 1Q12:

- R$0.66 per common share

- R$0.73 per preferred share

- Ex-dividends: May 04, 2012

- Date of Payment: May 25, 2012

1Q11 1Q12

193246

Net Profit

118%107%

Payout

2.5%2.9%

Yield Preferred Shares

1Q11 1Q12

499413

1Q11 1Q12

299382

14

Cash flow reflects higher revenues from the bilateral contract

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

+28% -17%

3.01

2.01

1

15

Low leverage with net debt/Ebitda of 0.3 times

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

1Q11 1Q12

0.45 0.54

Net Debt

0.4x0.3x

Net Debt/EBITDA

1Q11 1Q12

114% 115%

14.0% 11.3%Effective rate

1 – Percentage of CDI (Interbank Deposit Certificate)

The statements contained in this document with regard to thebusiness 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 andon the conditions affecting Brazil’s macroeconomicperformance as well as the electric sector and internationalmarket, and they are therefore subject to changes.

1Q12 Results