This document provides an overview of Eletropaulo, the largest electricity distribution company in Latin America. It includes a corporate structure chart and highlights from the first half of 2007. Some key points: - Eletropaulo serves over 5.6 million customers across 24 municipalities in Greater São Paulo. - Adjusted EBITDA for 1H07 was R$1.294 billion, up 3.2% from 1H06. Net profit increased 122.7% to R$505.5 million. - ANEEL authorized an average tariff reduction of 8.43% for Eletropaulo effective July 2007 following a tariff review. - Operating highlights for

1. 1st HALF 2007

3. Corporate Structure
AES Holdings
BNDES
Brasil Ltda
C 49.99% C 50.01%
P 100.00% P 0.00%
T 53.84% T 46.15%
Cia. Brasiliana
de Energia
C 71.27%
C 100.00% C 100.00% C 98.26%
P 32.23%
T 100.00% T 100.00% T 98.26%
T 52.51%
P 7.38%
AES Uruguaiana
AES ELPA T 4.44%
Inc (Cayman) C = Common Shares
P = Preferred Shares
C 77.81% T = Total
C 100.00% P 0.00%
T 100.00% T 30.97%
AES Uruguaiana
AES Infoenergy Eletropaulo AES Tietê S.A.
Empreend. S.A.
3

4. Eletropaulo Overview
Concession Area
Present in 24 municipalities that make
up Greater São Paulo, including the
capital
42,359 Km of overhead and
underground Sub-transmission lines
Distribution Installed Capacity –
12,867 MVA
Directly employs about 4,336 people
Largest electricity distribution
Summary Operating and Financial Data company in Latin America in terms of
R$ million 2005 2006 1H07 revenues
Total Energy (GWh)( 1 ) 36,499 38,183 19,637 5.6 million of customers
Net Revenue 8,321 8,354 3,490 Last four-year net revenue compound
Adjusted EBITDA (2 )
2,145 2,491 1,294 average growth rate (CAGR) – 6.78%
Adjusted EBITDA Margin ( 2 ) 25.8% 29.8% 37.1% Total Assets of R$ 12.9 billion
Net Profit (155) 373 506 (1) Includes free customers.
(2) Adjusted EBITDA = EBITDA plus pension expense plus one-time charges plus RTE amortization.
4

5. Highlights
Adjusted EBITDA of R$ 1,294.3 million, 3.2% higher than 1H06
Net Profit of R$ 505.5 million, 122.7% higher than 1H06
End of contingency with CTEEP regarding CETEMEQ property (02/16/2007) -
Agreement's total amount of R$ 125.3 million
Rating increase by S&P (04/16/2007) – National Scale from A- to A, keeping the
international rating scale in BB-
Dividends Payment (05/03/2007) – Distribution of R$ 130.4 million relative to FY
1H07
2006 earnings
Renegotiation of R$ 300 million in CCBs (05/12/2007):
– average cost from CDI + 1.82% to CDI + 1.20%
– maturity extension from 6 to 8 years
Pis and Cofins (06/30/2007) – Change in Tiete's taxation system for energy purchase
to cumulative (3.65%) applied to the amounts of energy contracted by Eletropaulo since
July, 2004 – reimbursement of R$ 192.8 million to Eletropaulo
Asset Revaluation (06/30/2007): Increase of R$ 1,537.2 million in total fixed assets
ANEEL authorized Eletropaulo a tariff review average index of -8.43%, applicable to the
Company’s tariff as from July 4th, 2007
Subsequent Events Approved in 08/10/2007 the intermediary dividends distribution relative to 1H07, no valor
de R$ 487.8 million
5

6. Market
Consumption Evolution and Market Share (12 largest)
Consumption - TWh R$ Billion
AES Sul RGE
Piratininga
1.6 1.4 Aes Eletropaulo
2.0
CELPE 8.4
38.2
36.5 2.0
35.4
2.7 4.9 6.5 Bandeirantes
2.1
ELEKTRO
19.6 2.6
32.7 31.6 31.7 3.6 CEMIG
6.3
16.0 COELBA
2.7
LIGHT COPEL
2004 2005 2006 1H07 3.9 CPFL 5.2
4.6
Captive Market Free Consumers
Captive Market Evolution (GWh) Total Billed Energy in Brazil
Excluding all free consumers from previous periods 2006 – 347,371 GWh
AES Sul RGE
Piratininga 1.8% Aes Eletropaulo
2.0%
2.2% 9.1%
CELPE
16.035,8 2.3%
15.741,1 Bandeirantes
15.379,3 2.3%
15.054,7
ELEKTRO CEMIG
2.8% 5.7%
COELBA
3.0% COPEL
LIGHT 5.4%
5.2% CPFL
2H05 1H06 2H06 1H07 5.3%
6

7. Market
Consumption Comparison in GWh
% Total Market (2Q07)
Captive Consumers
18.7%
+3.9%
1.1% Free Clients
19,637
80.2% 18,895
Potentially Free Clients +1.9%
15,742 16,045
+5.2%
+2.2%
6,222 6,548
+13.9%
-4.9% 4,993 5,101
3,310 3,146 +2.6% 3,153 3,591
1,218 1,250
Residential Industrial Commercial Public Sector and Free Clients Captive Market Total Market
Others
NOTE: Charts do not consider own consumption 1H06 1H07 7

8. Eletropaulo Energy Supply
100%
80% 1H07 – Energy Supply
60%
2.4% Gas
40%
Hydro 0.6% Biomass
96.0% 1.0% Others
20%
0%
2004 2005 2006 1H07
Proinfa (Alternative Sources)
Auctions
Others Bilateral Contracts Contracting strategy:
Bilateral Contract with Tietê – 100% to 103% of total demand
Initial Contracts
Itaipu
8

9. Operating Highlights
Loss Evolution (%) Collection Rate: % over Gross Revenue
+0.67%
+0.16%
13.53 99.00 99.10 99.04 99.70
12.91 97.50
11.99 12.16 12.18
7.04 6.42 5.50 5.67 5.69
6.49 6.49 6.49 6.49 6.49
2004 2005 2006 1H06 1H07
2004 2005 2006 1H06 1H07
Technical Losses Commercial Losses
Fraud and Clandestine Connections (1H07) Collection Rate (1H07)
– 150.0 thousand inspections and 14.0 thousand – Public Sector: 102.9%
frauds detected
– Private Sector: 99.5%
– 35.0 thousand clandestine connections regularized
Cuts and Reconnections – monthly average
(2Q06 x 2Q07)
– Cuts - decrease from 106,000 to 118,000
– Reconnections – increase from 70,000 to 71,000
9

10. DEC and FEC
12.57 12.79
12.38
11.81 Nov/05 up to Mar/06
11.34
8.95
8.68 8.66 8.61 8.49
8.21
6.91
8.94
6.41
9.08
6.83
7.87
5.52
8.49
5.80
Nov/06 up to Mar/07
2003 2004 2005 2006 1H07
DEC (hours) FEC (times) DEC Aneel Standard* FEC Aneel Standard*
DEC e FEC current levels are lower than Aneel limits
No penalties in any of 58 electric clusters in 2006 and 1H07
1H07: Storms in Summer and on atypical months (April and May)
2H07 actions:
– Speed-up maintenance plan for total implementation before Summer
– Reinforce strategy on emergency attendance DEC: Cuts Duration
(*) Average of ANEEL Standard established for each one from the 58 clusters FEC: Cuts Frequency
Source: ANEEL, Eletropaulo and INPE 10

11. Investments
1H07: R$ 193.2 million
R$ million
7%
404
378 10%
49 36%
330 58
33
18%
193
355 15% 14%
28
319
297
165
Custumer Service and System Expansion
Information Technology
2004 2005 2006 1H07 Sefl - Financed
Capex Self - Financed Maintenance
Loss Recovery
Others
11

12. Tariff Reset 2007
2nd Cycle
ANEEL authorized a tariff review index of -8.43%, applicable to
the tariff as from July 4th, 2007:
R$ million
PART A 5,428.99
PART B 2,089.02
NET RAB: WACC (pre-tax):
(pre-
Remuneration 708.59 4,700.20 15.08%
Reference Company 852.50
Bad Debts 49.45
GROSS RAB: Depreciation Rate:
Depreciaciation 478.48 11,101.62 4.31%
Other Revenues (42.62)
Requeried Revenue 7,475.39
X Factor = 2.42%
Verified Revenue 8,118.40
Req. Revenue / Ver. Revenue -7.92%
Financial Effects (38.44)
Financial Effects -0.51%
Total Tariff Reset -8.43%
12

13. Eletropaulo’s Tariff Evolution
30%
25%
18.6%
20%
15% 11.6% 11.5%
10% 2.1% 9.9%
8.0%
5% 16.9% 1.6%
3.6% 4.8%
0% 1.7% 1.6%
-4.3% -2.2%
-5% -6.2%
-10%
-8.4%
-15%
2003 2004 2005 2006 2007
Part B Part A PIS/COFINS IGPM
Average Tariff Variation
1H06 1H07
R$/MWh %
RESIDENTIAL 307.3 301.1 -2.0%
INDUSTRIAL 240.5 257.4 7.0%
COMMERCIAL 278.7 286.0 2.6%
OTHERS 229.2 234.0 2.1%
TOTAL 278.1 282.5 1.6%
13

14. Results
Gross Revenue Operating Expenses
R$ million R$ million
+6.1% +3.5%
5,723 2,564 2,654
5,393
342
514
2,233
2,036 +9.2%
+1.9%
2,964 1,565
2,714 1,386 1,264 1,289
1,150 295 161
1,004
3,357 3,490 703
664
1,710 1,814 747
664
306 425
1H06 1H07 2Q06 2Q07 1H06 1H07 2Q06 2Q07
Net Revenue Deduction of Operating Revenue Operating Expenses Energy Purchase Transport
Increase in the total market (captive + free Revaluation process of judicial deposits concluded in
consumers): 06/30/2007: increase of R$ 67.9 million on operating
expenses
– 1H07 x 1H06: 3.9%
– 2Q07 x 2Q06: 5.1% Energy Purchase Expense (2Q07 x 2Q06):
– Despite the reversal of R$ 178.2 million expenses in 2Q07, due to
Tariff adjustment of 11.45% applied since July 4th, the change in taxation system (PIS and Cofins) the expense
2006 increased R$ 39.1 million mainly explained by the:
– Reversal of R$ 145.4 million on extraordinary expenses in
2Q06;
– Increase of R$ 72.2 million in energy purchase from Itaipu,
Auctions and Proinfa in 2Q07
14

15. EBITDA
R$ million 1H06 X 1H07 2Q06 X 2Q07
EBITDA 947,1 996,2 523,3 605,2
RTE 163,5 162,5 82,2 80,2
Pension Fund 121,1 53,4 60,6 26,7
Provision - RTE 21,9 14,5 5,0 9,2
Judicial Deposits 0,0 67,9 0,0 67,9
Adjusted EBITDA 1.253,5 1.294,3 671,2 789,2
Adjusted EBITDA Margin 37,3% 37,1% 39,3% 43,5%
Increase +3.2% Increase +17.6%
15

16. Results
Financial Result Net Profit
R$ million R$ million
18.7%
1H06 1H07 2Q06 2Q07 14.5% 11.8%
34.4 6.8%
9.0
505.5
+68.3%
+122.7%
340.0
227.0
201.9
(126.1)
1H06 1H07 2Q06 2Q07
(247.8)
Net Profit Net Margin
Improvement of the financial result due to: Intermediary dividends relative to the
– The increase in financial income: accumulated earnings of 1H07, in the value
Monetary Variation of R$ 70.6 million related to the
accrual of judicial deposits (non-recurring event) of R$ 487.8 million:
– The decrease of financial expenses: – R$ 11.00/’000 Voting Shares
Reduction of R$ 441.6 million on gross debt and a lower – R$ 12.10/’000 Non-Voting Shares
average cost (15.4% p.y. in Jun/06 to 12.6% p.y. in
Jun/07)
Real Appreciation of 11.0% on last 12 months applied to
Ex-Dividends date: 08/27/2007
Overseas II liability of the US$ 580.0 million
Dividends Payment date: 09/03/2007
16

17. Consolidated Debt
Short Term x Long Term
Gross Debt – 1H07
R$ million
-30.0%
- 9.9%
4,606 4,877 IGP-DI
4,435 4,256 4,435
21%
21%
53.5%
20%
20% 27%
27% 20%
20%
3,606
Fixed Rate
R$ million
2,979 2,979
11.8%
79%
79% 80%
80% 80%
80% CDI/Selic Libor
73%
73%
33.4% 1.3%
Pension Fund: R$ 2,373 million
1Q07 2Q07 1H06 1H07
Private Creditors: R$ 2,007 million
LP CP Dívida Líquida BNDES: R$ 55 million
Debt Highlights – last 12 months Average Cost and Average Life
5.44 5.48 5.46 5.50
Gross Debt: reduction of 9.1% (R$ 441.6 million) % 101.18%
97.27%
104.28% 102.63% 105.30% 5
% 4
Net Debt: reduction of 30.0% (R$ 1.3 billion) 3.90
% 3
Foreign Currency: 1.3% of total (Hedge of 99.7%) % 2
% 1
Amendment of CCB (R$ 300 million) – May, 2007:
% 0
– Reduction of average cost from CDI + 1.82% to CDI + 1.20% 2Q06 3Q06 4Q06 1Q07 2Q07
– Increase of average life from 3.5 to 5.5 years
Avg. Cost - % CDI* p.y. Avg. Life - years
*CDI index at the end of the period 17

18. Managerial Cash Flow
R$ million 2Q06 3Q06 4Q06 1Q07 2Q07
Initial Cash 358 619 767 1,166 1,301
Operating Cash Generation 653 725 741 634 738
Investments (88) (75) (85) (95) (94)
Net Financial Expenses (85) (176) (91) (187) (130)
Net Amortization (45) (158) (111) (71) (83)
Pension Fund Expenses (108) (85) (55) (48) (48)
Income Tax (67) (83) - (97) (99)
Dividends - - - - (130)
Free Cash Flow 261 148 399 135 155
Final Cash 619 767 1,166 1,301 1,457
Operating Cash Flow: increase in the net revenue billed as a result of the 5.9% rise in power
consumption over 1Q07
Financial Expenses: semi-annual payments of interest on 9th debenture issuance (R$ 18.2 million)
and CCB (R$ 21.1 million)
Dividends: payment of R$ 130.0 million on May 3rd, 2007 relative to FY 2006
18

19. Corporate Governance
Corporate Governance Level 2
– Since December 13th, 2004
– Class A Preferred Shares (ELPL5): tag along of 80%
– Class B Preferred Shares (ELPL6): tag along of 100%
– 20% of Independent Board Members
Sustainability
– Listed on ISE since December 1st, 2005
– Sustainability Report based on GRI standards for the first time
Eletropaulo x Ibovespa x IEE
Index 100 = 12/28/06 Daily Average Volume - preferred shares
130 (R$ thousand)
+27.0%
125
+22.3%
+13.8% 20,510.7
120
+16.4%
18,024.9
115 +14.2%
110
105 '
+331.5%
100
95 4,177.5
90
85
Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 2005 2006 1H07
ELPL6 ELPL5 Ibovespa IEE
19

20. Management
“Segurança Sempre”
Frequency and Seriousness Rate Since Oct/06 the Company adopted BBS (Behavior
Based on Safety), program that aims to a security
5.65
behavior change
4.12
1,715 COGE Foundation Award 2006: Safety and Health
3.03 2.91
2.80
Management
801
217
Safety and Health Management System (OHSAS –
44 17
18001)
2003 2004 2005 2006 1S07
Seriousness Rate* Frequency Rate*
Safety Committees
Frequency Rate
Nº. Accidents x 1,000,000
Hours / man
Seriousness Rate
(Lost Days+ Debited Days) x 1,000,000
Hours / man
* NRB Criteria (Brazilian Legislation) 20

21. Management
Social Programs
Eletropaulo na Comunidade Project (5th Edition in 2006)
– 30 events in public schools – total of 120 thousand participants
“Circo das Artes” and “Creches Luz e Lápis”
– Social-cultural development of 650 children and teenagers
Reading Rooms
– 50 reading rooms installed, giving to the poorest communities access
to culture. File of 1,000 books.
“O Consumidor é Show” (*)
– Free shows to 50 thousand people and 3 ton. of food collected
Volunteer - Campaigns
– “Agasalho” – collected 40 thousand clothes.
– Easter - 650 chocolate eggs
– Christmas: 615 kits
(*) With proceeds of Rouanet’s Law nº 8,313/91
21

22. Management
Environment
Scope extension of Management Environment System (SGA) and the
Certification ISO14001:2004 (182 to 188 certified sites)
Environment License for new projects or repair. The process of
environment license to the current infra-structure has already began.
PROJETO POMAR: Partnership with State Department for the
Environment
Urbane Arborization: urbane arborization guide, cutting trees program, 2
R&Ds projects (R$ 630 thousand) related to arborization management and
leftovers. Technology Innovation: trees registry with GPS and “palm pilots”.
GRI (Global Reporting Initiative): elaboration and publication in 2006
– Sustainability Report with environment indicators
World Wide Fund for Nature (WWF) agreement renewed
– Funding and Publicity for Amazon’s protection
22

23. Conclusion
Net Profit of R$ 505.5 million in 1H07, 122.7% higher than the
net profit in 1H06
Reduction of 30.0% in consolidated net debt in the last 12
months
Increase of total debt’s average life from 3.7 to 5.5 years
Rating increased by S&P in national scale from A- to A
Collection Rate of 99.7%
R$ 487.8 million of dividends relative to 1H07 earnings to be
distributed on September 3rd, 2007
23

25. Tietê Overview
Concession Area
30 year concession expires in 2029
10 hydro plants on the rivers Tietê,
Pardo and Mogi Guaçu
Installed Capacity of 2.651 MW, 18% of
the energy generated in the State of
Oceano São Paulo
Atlântico
100% of assured energy is sold under
Summary Operating and Financial Data long-term contract PPA with
R$ million 2005 2006 1H07 Eletropaulo through December 2015
Generated Energy (GWh) 12,852 12,475 7,091
Price adjusted annually for inflation
Net Revenues 1,220 1,387 740 (IGP-M)
EBITDA 939 1,097 520
Payout of 100% of the net income
EBITDA Margin 77.0% 79.1% 70.2%
reported in 2006
Net Income 556 614 303
25

26. Brazil
10 largest Generator Companies - 2006
Generation in Brazil
2006 – 403,6 TWh
R$ Billion
3.1% 4.9%
2.5% 2.1%
12.1% AES Tietê 11.3%
13.6% 12.0%
CHESF
2.6% Furnas 4.6%
CESP
8.1%
Itaipú 9.5%
14.0%
Cemig - GT
18.7%
Tractebel
Copel - GER
13.0% 8.1%
8.1% Eletronorte
Duke
8.5%
23.0%
20.1%
Tietê represents 2.5% of Brazil’s Total Installed Capacity and also is the 9th
largest private generator company in Brazil.
The 10 largest generator companies represent 62.3% (65,941 MW) of the total
installed capacity in Brazil (105,927 MW).
Fonte: ANEEL; Gasnet. 26

27. Highlights
PIS/Cofins – Positive impact of R$ 49.2 million on Net Income in
2Q07
Increase on transmission expense (TUSDgeneration) – Negative
effect of R$ 61.1 million on Net Income in 2Q07
1H07
Ebitda of R$ 519.8 million in 1H07, 4.2% lower than 1H06
Net Income of R$ 302.5 million in 1H07, reduction of 1.0%
compared to 1H06
On April 10th, Aneel, approved the acquisition of Licenses to build
three small hydropower plants in the state of Rio de Janeiro
On August 10th, the Board of Directors authorized the payment
of R$ 142.1 million in dividends, which correspond to 100% of
2Q07 net earnings:
Subsequent Events – R$ 1.42 per 1,000 common shares
– R$ 1.56 per 1,000 preferred shares
27

28. Energy Balance – 1H07
Generation – MW average Billed Energy - GWh
+7.3% 7,239
6,749
738
177
128.7%
97.6% 109.2% 106.9% 115.1% 111.7%
914
961
80.7%
1,642
1,467 1,424
1,392 1,363 5,557 5,587
1,258
1,040
2001 2002 2003 2004 2005 2006 1S07 1H06 1H07
Generation - MW Average Generation / Assured Energy Eletropaulo MRE CCEE/Losses
Increase of 15.3% in energy generated (1H07 x 1H06) Eletropaulo tariff:
July/2006 to May/2007 - R$ 133.87/MWh
Generation was 28.7% above the assured energy
Since June/2007 – R$ 127.03/MWh
(1,275 MW average)
MRE tariff – R$ 7.47/MWh
Growth of 22.5% in volume sold to CCEE/MRE (1H07
x 1H06) CCEE tariff* – R$ 44.05/MWh
* Average 1H07
28

29. Reliability
Failure Index (FI) and Equivalent Average of 8.3 years operating without
Availability Factor (EAF) figures exceed accidents that require removal of
the requirements established by the personnel from the worksite
National Ecectic Energy Agency – ANEEL:
2.9% for (FI) and 92.0% for EAF
Period without
Failure Index x Availability
Accidents
Period Without
96.8% 96.1% Plant
94.2%
92.6% 93.0% 92.5% Accidents - Years
90.9%
Ibitinga 19.5
3.0 MogiGuaçu 12.9
2.5 Nova Avanhandava 10.0
2.2 2.3
Água Vermelha 9.4
1.6 1.7 Limoeiro 7.3
Barra Bonita 7.3
0.8 Promissão 5.8
Caconde 4.7
2001 2002 2003 2004 2005 2006 1H07
Euclides da Cunha 4.3
Failure Index (FI) Equivalent Availability Factor Bariri 2.0
29

30. Capex
Capex – 1H07: R$ 21.7 million
1H07
– Restoration and upgrade in equipments – R$ 12.0 million
– Environment (reforestation) – R$ 5.0 million 2.4%
16.2%
Equip.
– Small Hydropower Plants – R$ 3.5 million
3.0% 22.9%
Hidroway
– Others (SAP, Hidroway etc.) – R$ 1.2 million
PCH
Forecasted Capex - 2007: R$ 75.5 million
IT
– R$ 22.4 million: Construction of three small hydropower plants
located in the interior of São Paulo State. Together, they will Environment
boast na installed capacity of 8MW. 55.5%
– R$ 36.6 million: Restoration and upgrading of the plants
R$ million
– R$ 11.7 million: Environment
– R$ 4.8 million: SAP 75.5
Investment in Small Hydropower Plants
46.5
– Acquisition of License to build three small hydropower plants in
the State of Rio de Janeiro, with a total installed capacity of 52 21.9
27.5
21.7
MW and average 28.97 MW of assured energy, approved by 12.4
ANEEL – forecasted investments of R$ 225 million in 2 years,
from which R$ 15.3 million were already invested. 2003 2004 2005 2006 1H07 2007e
30

31. Expansion Requirement
Requirement: increase installed capacity by at least 15% (400 MW),
until December 2007:
– Increasing the installed capacity in São Paulo State; or
– Purchasing energy from new plants, located in São Paulo, through long term agreements
(at least 5 years)
Restrictions to increase the capacity:
– State of São Paulo – no hydro resource and environmental restrictions to thermal plants
– Gas supply
– “New Model of the Electric Sector” (Law # 10,848/04)
Proposal from AES Tietê to the State Government of São Paulo:
– To be supported by a specialized consulting company to produce a report in 12 months
regarding technical, financial, regulatory and environmental aspects, of the generation
capacity expansion possibilities in the State of São Paulo and in compliance with the “New
Model of the Electric Sector”
Neither ANEEL nor the São Paulo State Government have sent a formal
reply to AES Tietê with regard to this issue so far
31

32. Results
Net Revenues Costs and Operational Expenses
R$ million R$ million
+6.1%
740.4
698.0 +33.2% 253
190
+9.1% 164
175 +70.8%
380.7 74
348.8
96
132
82 36
45
44
34 33 16
16 16
1H06 1H07 2Q06 2Q07 1H06 1H07 2Q06 2Q07
Power Purchase and sector charges
Operational Expenses
Depreciation
Net Revenues in 1H07 up 6% from 1H06: Increase of 33.2% in costs and operational
(i) 0.9% price adjustment granted in July06 for the expenses mainly due to extraordinary items
energy sold under the bilateral contract occurred in 1H07:
(ii) Higher energy volume sold to Eletropaulo and to (i) Power Purchase – R$ 92.5 million extraordinary
CCEE / MRE in 1Q07. expense due to the increase of the transmission
(iii) Positive impact of R$ 28.5 million due to charge (TUSDgeneration) – Ratifying Resolution
PIS/Cofins taxation system. 497/07
32

33. Results
EBITDA
R$ million
77.7% 70.2%
77.1%
542.5 -4,2% 519.8 61.1%
-13,5%
268.8
232.6
1H06 1H07 2Q06 2Q07
EBITDA Margin
33

34. Results
Financial Results Net Income
R$ million R$ million
43.8% 40.9%
43.8%
37.3%
1H06 1H07 2Q06 2Q07 -1.0%
10.1 305.5 302.5
-6.9%
152.6 142.1
(18.9)
(23.7)
-59.9%
(47.1) 1H06 1H07 2Q06 2Q07
Net Margin
Positive impact in 2Q07, explained by Payment of R$ 142.1 million in
the accounting of inflation gains on dividends, which correspond to 100%
PIS/Cofins tax credits, which totaled R$ of the net earnings obtained in 2Q07
36.6 million – R$ 1.42 per 1,000 common shares
– R$ 1.56 per 1,000 preferred shares
IGP-M reduction of 50.0% (2Q07 x Ex-Dividends: August 27, 2007
2Q06) Payment: September 3, 2007
34

35. Debt
R$ million
Amount Creditor Maturity Cost Collateral
Vencimento
1,305.2 Eletrobras May, 2013 IGP-M + 10% p.a. Receivables
4.9 FunCesp III Sep, 2027 IGP-M + 6% p.a. Receivables
Net Debt
R$ Million
3.2x Net Debt
Net Debt / EBITDA
2.0x
1.4x
0.7x 0.6x 0.7x
1,406
1,254
1,096
676 682 661
2002 2003 2004 2005 2006 1S07
Cash availability = R$ 578 million (June, 2007)
– Marketable securities with durations lower than 90 days
– Average profitability around 100% of CDI
35

36. Cash Flow
R$ million 2Q06 3Q06 4Q06 1Q07 2Q07
Initial Cash 852 777 674 691 687
Operating Cash Flow 308 290 280 288 308
Investments (6) (8) (24) (10) (12)
Net Financial Expenses (18) (15) (19) (16) (18)
Net Amortization (44) (50) (45) (46) (48)
Income Tax (20) (16) (32) (220) (17)
Dividends and Interest on Equity (295) (305) (143) - (325)
Free Cash Flow (74) (104) 17 (4) (112)
Final Cash 777 674 691 687 574
2Q07 free cash flow was negative of R$ 112.3 million, mainly due to payments
of R$ 165.1 million and R$ 160.5 million corresponding to dividends on the
4Q06 and 1Q07 net income respectively.
36

37. Capital Markets
Tietê x Ibovespa x IEE - Index 100 = June, 2006
170
Sustainability
160 57.6%
– Sustainability Report based on
150 48.5%
44.2% GRI standards for the first time.
140 44.1%
130
120
110
100
90
jun/06 sep/06 dec/06 mar/07 jun/07
GETI3 GETI4 Ibovespa IEE
Daily Average Volume Payout
(R$ thousand)
Dividend Yield
64.0% 9,726
12.0%
100% 2006
11.4%
72.4% 5,930 5,714
GETI3 13.2%
96.9% 2005
3,441 4,232 13.,2%
GETI4
1,813
4,012 13.4%
1,628 1,698 95.0% 2004
12.3%
2005 2006 1H07
37

38. Management
Social Programs
“Generating Citizenship” Project
– Involves the selection and support of cultural, educational
and/or human development projects which benefit
communities in the interior of the Estate of São Paulo
Music for the Environment Project
– 9 free outdoor concerts held in different cities.
– Total public of 18 thousand people and collection of 2.3
tons of goods donated to several institutions
Reading Rooms Project
– 25 Reading Rooms with approximately one thousand
books
Guri Project
– Sponsorship of 5 units. More than 700 children from low
income families. Opportunity to learn how to play musical
instruments and to sing in a coral
38

39. Management
Environment
Global Connections
– Alignment of the Company’s initiatives to International agreements and summits
– Actions from AES Brazil adopted as “Best Practice” actions for AES Corp
– Positive repercussion towards Environmental Authorities and NGOs that work in this
field.
Carbon Credits
– Evaluation of ongoing projects
Flora Program
– Produced 1 million saplings in the Promissão Plant
nursery and donated them to rural communities,
producers, municipal governments and NGOs
Fishery Management Project
– Bred and released 2.5 million young fish
into 10 reservoirs
39

40. Conclusion
Generation was 29% higher than assured energy in 1S07
Net Income of R$ 302.5 million in 1H07, reduction of 1.0%
compared to 1H06. Net margin of 40.9% compared to 43.8%
in 1H06
– The reduction on net income is mainly due to the increase of R$ 92.5 million in
transmission expenses (TUSDgeneration) - extraordinary event
Payment of R$ 302.6 million in dividends, which corresponds to
100% of 1H07* net earnings
AES Tietê has been analyzing new opportunities of investments
and expansion, aiming at increasing the Company’s results
* R$ 160.5 million refer to 1Q07 net earnings distributed in June 06, 2007 and R$ 142.1 million refer to 2Q07 net earnings that will be paid on
September 03, 2007
40

41. 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 Company 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 electricity sector and international
market, and they are therefore subject to change.

42. ELETROPAULO METROPOLITANA
AES TIETÊ S.A.
ELETRICIDADE DE SÃO PAULO S.A.
42