2. AES Brasil Group
• Presence in Brazil since 1997
• Operational Figures:
• Consumption units: 7.7 million
• Distributed Energy: 53.6 TWh
• Installed Capacity: 2,659 MW
• Generated Energy : 13.9 TWh
• 7.4 thousand AES Brasil People
• Investments 1998-2011: R$ 8.1 billion
• Solid corporate governance and sustainable
practices
• Safety as value #1
2
4. Mission & visions
Mission
• Improving lives and promoting development by providing safe,
reliable and sustainable energy solutions
Visions
• Be a leader in operational and financial management in Brazilian
energy generation sector and expand installed capacity
• Be the best distributors in Brazil
4
5. Social responsability: annual investments
of R$ 83 million
Development and transformation of communities
“Casa de Cultura e Cidadania” Project - Offers courses and activities in culture and sports. Directly benefits
approximately 5.6 thousand children and teenagers and indirectly 292 thousand people in 7 units located within
AES Brazil companies‟ areas of operation
Children educational development
“Centros Educacionais Luz e Lápis” Project - Two units in São Paulo attending 300 children from
1 to 6 years old in condition of social vulnerability
Education on safety and efficiency in energy consumption
“AES Eletropaulo nas Escolas” Project - Education about safe and efficient use of energy to 4.5
thousand teachers and 404 thousand students from 900 public schools. The actions include
recreational activities offered in adapted trucks.
Converting consumers to clients
Developed for grid connection regularization. Since 2004, more than 500 thousand families in
low income communities were benefited from better energy supply conditions and social
inclusion.
5
6. Shareholding structure
AES Corp BNDES
C 50.00% + 1 share C 50.00% - 1 share
P 0.00% P 100%
T 46.15% T 53.85%
Cia. Brasiliana
de Energia
C 71.35% C 76.45%
C 99.99% C 99.00% P 32.34% P 7.38%
T 99.70% T 99.99% T 99.00% T 52.55% T 34.87%
AES AES AES AES
AES Sul
Infoenergy Uruguaiana Tietê Eletropaulo
C = Common Shares
P = Preferred Shares
T = Total
6
7. AES Tietê and AES Eletropaulo are listed
in BM&F Bovespa
¹ ¹ Free Float Others² Market Cap³
16.1% 19.2% 56.2% 8.5% U$ 2.6 bi
24.2% 28.3% 39.5% 8.0% U$ 5.1 bi
1 - Parent companies, AES Corp and BNDES, have similar voting capital on each of the Companies: approx 38.2% on AES Eletropaulo and 35.7% on AES Tietê
2 - Includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively
3 - Base: 04/30/2012. Considers preferred shares for AES Eletropaulo and preferred and common shares for AES Tietê
7
8. AES Brasil is the second largest group in the
Ebitda1 – 2011 (R$ Billion)
electric sector
5.4 4.9
3.8
2.9 2.9
2.0
1.9
1.5
1.2
0.7
2
CEMIG AES BRASIL CPFL TRACTEBEL NEOENERGIA CESP COPEL EDP LIGHT DUKE
Net income1 – 2011 (R$ Billion)
3.0
2.4
1.6 1.6 1.4
1.2
0.5
0.3 0.3
0.1
AES BRASIL2 CEMIG CPFL NEOENERGIA TRACTEBEL COPEL LIGHT DUKE CESP EDP
1 – excluding Eletrobrás Source: Companies‟ financial reports 8
2 – includes AES Atimus sale (aprox. R$ 1 billion in EBITDA and aprox. R$ 700 million in net income)
9. AES Tietê is the 3rd largest private
Generation installed capacity (MW) - 20121
generator in Brazil
Main privately held Companies
AES Tietê is the 3rd largest among private
AES TIETÊ CPFL DUKE EDP
2,3% 2,4% 1,9% 1,6%
NEOENERGIA
generation companies
TRACTEBEL
6,1% 1,2%
ENDESA
0,8% Approximately 78% of country’s generation
LIGHT
0,8%
installed capacity is state-owned2
Three mega hydropower plants under
DEMAIS CHESF ³
27% 9%
construction in the North region of Brazil with
FURNAS ³
8% 18 GW in installed capacity
ELETRONORTE ³
8% – Santo Antonio and Jirau (Madeira River): 7 GW
COPEL ITAIPU ³
4% 6% – Belo Monte (Xingu River): 11 GW
PETROBRÁS ELETRONUCLEAR ³
5% CEMIG CESP 3%
6% 6% CGTEE ³
1%
ELETROSUL ³
0,4% 1- Sources: ANEEL – BIG (March, 2012) and Companies websites 2- Source: Banks „ reports 9
Total Installed Capacity: 117 GW
3 – Eletrobrás, totaling 35%
10. AES is among the largest distribution
Consumers – Dec/2011
players in Brazil
13%
30%
• 63 distribution companies in Brazil
12%
distributing 430 TWh
AES Brasil
AES Brasil
• AES Brasil is one of the largest electricity
12% CPFL Energia
CPFL Energia
distribution group in Brazil:
5%
7% CEMIG
Cemig – AES Eletropaulo: 45 TWh distributed,
7% 16% 10.5% of the Brazilian market
Consumption (GWh) - 2011 Neoenergia
Neo Energia
– AES Sul: 8.6 TWh distributed, 2.0% of the
13% Brazilian market
Copel
Copel
12% Distribution companies’ operations are
Light
Light
restricted to their concession areas
52%
EDP
EDP Acquisitions must be only performed by
11%
the holdings of economic groups
Outros
Outros
7%
6%
6% 6%
10
12. Energy sector in Brazil: business segments
Free Clients Distribution Transmission Generation
• Consumption of 113 TWh • 63 companies • 68 companies • 13 groups controlling 76% of
(26% of Brazilian total market) • 430 TWh of energy • 68% private sector total installed capacity
• Conventional sources: above distributed in 2011 • 22% private sector
• High voltage transmission
3,000 kW • 1,862 power plants
• 70 million consumers (>230 kV)
• Alternative sources: between • 117 GW of installed capacity
• 67% private sector • 98,648 km in extension
500 kW and 3,000 kW • 73% hydroelectric
• Annual tariff adjustment lines (SIN¹)
• Large consumers can • 17% thermoelectric
• Tariff reset every four or • Regulated public service
purchase energy directly
five years with free access • 5% biomass
from generators
• Regulated public service • Regulated tariff (annually • 4% SHPP2
• Free contracting environment
• Regulated contracting adjusted by inflation)
• 1% Wind
environment
• Contracting environment –
¹ Interconnected National System
free and regulated markets 12
² Small Hydro Power Plants Sources: EPE, Aneel, ONS and Banks‟ reports
13. Energy sector in Brazil:
contracting environment
Regulated market Free market
Generators, Independent Power Producers Generators and Independent
(IPPs), Trading companies and Auto producers Power Producers (IPPs)
Auctions: New Energy
Bilateral contracts (PPAs1)
and Existing Energy
Distribution companies Free clients
• Main auctions (reverse auctions):
– New Energy (A-5): Delivery in 5 years, 15-30 years regulated PPA1
– New Energy (A-3): Delivery in 3 years, 15-30 years regulated PPA1
– Existing Energy (A-1): Delivery in 1 year, 5-15 years regulated PPA1
1 – Power Purchase Agreement 13
14. Electric sector in Brazil:
demand and supply balance
Static balance – Load x Supply (considering reserve energy1)
100,000
90,000 • Brazilian electric system
Static balance - Load x Supply (MW avg)
80,000
presents a surplus in the
70,000
60,000 energy balance for the
50,000
years to come
40,000
30,000 • Low risk of rationing
20,000
• Expansion opportunities
10,000
- since this capacity is not
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance (%) 5.9% 7.8% 11.2% 9.6% 8.4% 10.0% 10.6% 8.2% 5.4% 4.2%
yet fully contracted
Balance 3,528 4,875 7,443 6,684 6,097 7,590 8,404 6,734 4,673 3,770
Reserve 439 1,007 1,509 1,743 1,746 2,959 2,959 2,959 2,959 2,959
Supply 62,912 66,355 72,585 74,492 76,823 80,320 84,428 85,886 87,601 90,409
Load 59,823 62,487 66,651 69,551 72,472 75,689 78,983 82,111 85,887 89,598
1- Energy destined to equalize the differences between the sum of power plants‟ physical guarantees and the system‟s physical guarantee.
2- Supply based on physical guarantee 14
15. Generation market overview
Installed capacity (GW)1 Growth by source - new auctions (GW)
Total: 22 GW
166 171
156 162
141 148
133 136 19
123 5 8 11 14 2
117 2 3 Thermal
24 28 33 38 41 42 42 2,6
6 13 23
Renewables
110 110 110 110 110 110 110 110 110 110 10,6
Hydro
8,6
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Current installed capacity Auctioned Upcoming auctions
• Brazilian installed capacity to grow 4-5% y.o.y (~ 5 GW) over the next 10 years
• Renewable energies will lead the capacity increase with competitive cost vs. other technologies and strong
Government support
• Gas-fired thermal to leverage on the pre-salt discoveries and on the dispatchability benefit
1- Source: EPE (Energetic Research Company), Ten-year Energy Plan 2020, May/2011
2- Amount related to thermal is an estimate of the Company 15
16. Energy sector in Brazil:
regulatory methodology
Tariff reset and readjustment
• Tariff Reset is applied each 4 years for AES Eletropaulo
− Base date: Jul/2011 • Parcel A Costs
− Parcel A: costs are largely passed through to the tariff Energy − Non-manageable costs that are largely
Purchase passed through to the tariff
− Parcel B: costs are set by ANEEL Transmission
− Incentives to reduces costs
Sector Charges
• Tariff Readjustment: annually
− Parcel A : costs are largely passed through to the tariff
Regulatory
− Parcel B: cost are adjusted by IGPM +/- X(1) Factor Opex • Regulatory Opex:
(PMSO)
– Efficient operating cost determined by
ANEEL (National Electricity Agency)
X WACC Investment
Remuneration
• Remuneration Asset Base:
Remuneration
Asset Base – Prudent investments used to calculate
the investment remuneration (applying
X Depreciation WACC) and depreciation
Depreciation
Regulatory Parcel A - Non-Manageable Costs
Ebitda
Parcel B - Manageable Costs 16
1 – X Factor: index that captures productivity gains
17. Energy sector in Brazil:
regulatory methodology
3rd Cycle of tariff reset – X factor
X FACTOR Pd Q T
= + +
Distribution Operational expenses
DEFINITION Quality of service
productivity trajectory
Capture productivity Stimulate Implement
OBJECTIVE gains improvement of operational expenses
service quality trajectory
Defined at tariff reset, Defined at each tariff Defined at tariff reset,
considers the average readjustment, considers considers reference
productivity of sector variation of SAIDI and company and
APPLICATION adjusted by market SAIFI and comparative benchmarking
growth and performance of discos methodologies
consumption variation
17
18. Timeline 2012 – 3rd cycle tariff reset
-ANEEL‟s Board of
Directors approved opening
of public hearing Response to Final definition
audit report - Deadline to on ANEEL‟s
-Release of ANEEL‟s public hearing Board of
preliminary proposal of Regulatory
Asset Base contributions Director
-5.14% as economic effect meeting
and -8.81% as average
effect for clients
April, April, April, April, May, May, 11th to June July,
10th 12th 23rd 26th 11th June. 4th 4th
- Initial period
of public
hearing Tariff
contribution Tariff reset
Interaction adjustment
public hearing
- ANEEL with the incorporating
in person
provided regulator the settlement
session
information of tariff reset
and technical
notes
19.
20. AES Tietê overview
Generation facilities
18 hydroelectric plants in São Paulo and Minas Gerais
30-year concession valid until 2029; renewable for
another 30 years
Installed capacity of 2,663 MW, with physical guarantee1
of 1,282 MW average
Almost all the amount of energy that AES Tietê can sell
is contracted with AES Eletropaulo until the end of 2015
AES Tietê can invest in generation, its main activity, and
operate in energy trading
364 employees as of March, 2012
20
1 - Amount of energy allowed to be long term contracted
21. Generated energy shows high
operational availability
Generated energy (MW avarage1) Generated energy by power plant (MW average1)
136% 7%
130% 130% 4%
125% Agua Vermelha
124% 5%
Nova Avanhandava
6%
Promissão
9% 59% Ibitinga
1,753 Bariri
1,665 Barra Bonita
1,599 1,582 1,612 10%
Other Power Plants*
2009 2010 2011 1Q11 1Q12
Generation - Mwavg Generation/Physical guarantee
1 – Generated energy divided by the amount of hours * Caconde, Limoeiro, Mogi and SHPPs 21
22. A significant amount of billed energy and net
revenues comes from the bilateral contract with
AES Eletropaulo
Billed energy (GWh) Net revenues (%)
94%
88% AES Eletr
94%
14,729 15,122
14,706 117 301 554 94% Outros co
117 301
1,150 1,340
1,150 204
1,340
331
2,331 1,980 426 215 MRE
1,680 2,331 1,980 346
1,135
1,188
1,554 Mercado
1,535
1%
4,867 6%3%
11,108 11,108 11,108 162
3,645 108 570 2%
11,138 11,108 11,108 1%
424 1,256 3%
8,578 587 3%
AES Eletropaulo
8,045 2%
1% 2%
2,526 2,879
3%
Other bilateral contracts
AES Eletropaulo
2%
2009 1 2010 2011 1Q11 1Q12
SpotEletropaulo
AES Market
Other bilateral contracts
2008 2009 2010 9M10 9M11
MRE Market contracts
Spot bilateral
Other
AES Eletropaulo MRE2 Spot Market Other bilateral contracts
1 – Leap Year 2 – Energy Reallocation Mechanism MRE2
Spot Market 22
23. Nova Avanhandava and Ibitinga power
plants modernization investments
Investments (R$ million) 1Q12 Investments
175 86%
19
82
174 11%
12 156 3%
38
4 21
70
2
34
19
Equipment and Maintenance
2010 2011 2012(e) 1Q11 1Q12
New SHPPs *
IT Projects
Investments New SHPPs*
*Small Hydro Power Plants 23
24. Growth opportunities and
capacity expansion obligation
“Thermal São Paulo” Project
- Natural gas combined cycle thermal plant, with 550 MW of installed capacity
- Gas unavailability for A-5 energy (2011) and A-3 (2012) auctions
- Project registered in 2012 A-5 auction: deadline to turn in the gas contract is June 1st, 2012
- Environmental license suspended by court injunction. AES Tietê presented its defense on April, 27th 2012
- Next steps: Fullfillment of requirements to obtain the installation license
“Thermal Araraquara” Project
- Purchase option acquired in March, 2012
- Natural gas combined cycle thermal plant, with 579 MW of installed capacity
- Registered for A-5 energy auction in 2012
- High sinergy potential with Thermal São Paulo
Expansion Obligation
- April 26th: Presentation of the Company‟s capacity expansion plan (Thermal São Paulo Project)
24
26. Steady earnings distribution on a
quarterly basis
Net income and dividend pay-out1 (R$ million)
110% 117% 109%
• Dividends distribution practice:
11% 11% 11% 100% of net income
– 25% of minimum pay-out
706 737 according to bylaws
– Average payout since 2006:
31
106%
– Average dividends since 2006:
R$ 745 million per year
845
742 706
193 246
(36)
2009 2010 2011 1Q11 1Q12
Pay - out Yield Pref Recurring Non- recurring
26
1 – Gross value
27. Debt profile
Net debt (R$ billion) Amortization schedule – principal (R$ million)
0.3x 0.3x 0.3x 0.4x
0.3x
300 300 300
0.4 0.5
0.4 0.4 0.5
2009 2010 2011 1Q11 1Q12 2013 2014 2015
Net Debt Net Debt / EBITDA
• March, 2012:
– Average debt cost in 1Q12 was 115% of CDI1 p.a. or 15% p.a.
– Average debt maturity of 2.0 years
27
1 – Brazilian Interbank Interest Rate
28. Capital markets
AES Tietê X Ibovespa X IEE Daily avg. volume (R$ thousand)
12 Months 1
130
+ 19% 14,125
120 13,922
12,934
110
+ 11% 10,187
+ 6% 4,239 3,505
3,397
100 + 4%
2,101
-7%
90 9,683 9,537 10,620
8,086
80
70
2009 2010 2011 YTD Apr/12
Apr-11 Jul-11 Oct-11 Jan-12 Apr-12
Ibovespa IEE² GETI4 TSR³ GETI3 Preferred Common
• Market Cap4: US$ 5.1 billion
• BM&FBovespa: GETI3 (common shares) and GETI4 (preferred shares)
• ADRs negotiated in US OTC Market: AESAY (common shares) and AESYY
(preferred shares)
1 – Index: 04/29/2011 = 100 2 – Electric Energy Index 3 – Total Shareholders‟ Return 4 – Index: 04/30/2012 28
29.
30. AES Eletropaulo overview
Concession area
Largest electricity distribution company in Latin America
Serving 24 municipalities in the São Paulo Metropolitan area
Concession contract valid until 2028; renewable for another 30
years
Concession area with the highest GDP in Brazil
45 thousand kilometers of lines and 6.3 million consumption
units in a concession area of 4,526 km2
45 TWh distributed in 2011
AES Eletropaulo, as a distribution company, can only invest in
assets within its concession area
5,809 employees as of March, 2012
30
32. Industrial Class
Industrial class X Industrial production in São Paulo State
15%
10%
5%
0%
• Industrial consumption is
-5%
-10%
influenced by manufacturing
Economic crisis Economic recovery
-15% industry performance in São Paulo
Jul/07 Feb/08 Sep/08 Apr/09 Nov/09 Jun/10 Jan/11 Aug/11 Mar/12
State
Industrial production SP (% 12 months) Industrial (% 12 months)
Consumption of industrial class by activity1 – AES Eletropaulo • Recent slowdown is influenced by
the decrease of industrial
production in 2011 and 2012
Vehicles,
Chemical,
Rubber,
Plastic
Other and Metal
industries products
52% 48%
32
1 – As of March, 2012.
33. Residential class
Residential class X Average income in São Paulo Metropolitan Area
1,800 4,800
Average Income R$ - SP (q-2¹)
• Residential consumption driven
Residential (GWh)
1,600 4,300
by average income
1,400 3,800 • Income expansion trend in São
Paulo Metropolitan Area will
1,200 3,300
sustain growth of residential class
1,000 2,800 • Average annual growth (2003-
1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12
2011):
Avg Real Income R$ - SP (q-2¹) Residential (GWh)
– total residential market: 5.5% y.o.y
Consumption per consumer (in kWh)
– consumption per consumer: 2.1%
y.o.y
- 9.4%
258 Consumption per consumer is
Rationing still 9.4% lower than in
229 234
223 228
219 the period before the rationing
220 213
203 207
199
192
1 - Two quarters of delay in relation to consumption 33
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
34. Investments focused on grid automation,
maintenance and system expansion
Investments breakdown (R$ million) Investments 1Q12 (R$ million)
53
744 6
800
682 7
29
700 46 7
28
600 516 530 22
383 16
500 37
44
400 22
715
654
300
478 513
200 362 Maintenance
100 Client Service
System Expansion
0
Losses Recovery
2009 2010 2011(e) 9M10 9M11
IT
Capex Paid by Customers
Paid by the Clients
Others
34
35. SAIDI reduction as a result of
action plan implementation
SAIDI - System average interruption duration index
10.09
- 26%
9.32 10.09
8.68
9.32
8.68
11.86 10.60 10.36
11.86 10.60 10.36 3.47
2.57
1 1
2009 2010 2011 3M11 3M12
2009th 2010 2011
8th 7th 6
SAIDI (hours) SAIDI Aneel Reference
SAIDI (hours) SAIDI Aneel Reference
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
► 2012 SAIDI ANEEL Reference: 8.67 hours
Sources: ANEEL, AES Eletropaulo and ABRADEE
35
1 – Accumulated 3 months (Jan-Mar) 2011 and 2012
36. SAIFI remains below regulatory limit
SAIFI - System average interruption frequency index
7.87
7.39
6.93
- 22%
7.87
7.39
6.93
6.17 5.43 5.45 1.80
1.40
6.17 5.43 5.45
1 1
2009 2010 2011 3M11 3M12
7th 3rd 4th
2009 2010 2011
SAIFI (times) SAIFI Aneel Reference
SAIFI (times) SAIFI Aneel Reference
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
► 2012 SAIFI ANEEL Reference: 6.87 times
Sources: ANEEL, AES Eletropaulo and ABRADEE
36
1 – Accumulated 3 months (Jan-Mar) 2011 and 2012
37. Operational KPIs
Losses (%) Collection rate (% over Gross Revenues)
11.8 10.9 10.5 10.8 10.4
5.3 4.4 4.3
4.0 4.0
6.5 6.5 6.5 6.5 6.4
2009 2010 2011 1Q11 1Q12
Technical Losses Commercial Losses
ANEEL References:
From Jul/09 to Jun/10: 12.32% From Jul/10 to Jun/11: 12.45%
37
38. “Creating Value” Project
Internal process review:
(i) operating activities; (ii) support functions Objective: to operate
Target definition for productivity within the regulatory
increase
framework for
Reassess organization structure
operational costs,
Review supply management and seek benchmark
position in the
Reassess and reinforce non-technical
losses initiatives sector
38
39. Financial highlights
Net revenues (R$ million) Ebitda (R$ million)
2,413 2,848
9,697 9,836
8,786 426 934 426
1,775
87 89 339 87 357
- 442 301 58
197 202
245 332
2,423 2,472 1,607 1,648
1,486 1,630
1,491 1,473 5491,325 1,326
318
134
415 136
182
2009 2010 2011 1Q11 1Q12 2009
2008 2010
2009 2011
2010 1Q11
9M10 1Q12
9M11
Regulatory assets and liabilities
Recurring
Non-recurring
Regulatory assets and liabilities
1
Non-recurring
Ebitda
39
1 – Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 707 million impact on Ebitda
40. Earnings distribution
on semi-annual basis
Net income and dividend payout1 (R$ million)
114.4% 140.0%
93.4% 120.0%
54.4% 100.0%
80.0%
60.0%
40.0%
20.0%
28.6% 17.1% 0.0%
20.4% • Dividends distribution practice:
1,572
distribution above the minimum
1,348
1,156 required
1.572
114.4% 652 140.0% - 25% of minimum pay-out according
93.4% 350
1.348 120.0%
1.156 54.4% 100.0% to bylaws
80.0%
374 652 60.0% – Average payout since 2006: 83%
236350 40.0%
20.0% per year
20.4% 374 28.6%
Pay-out 287
17.1% Yield0.0%
PN
160
236 – Average dividends since 2006:
287
160 R$ R$ 904 million per year
762 282
622 634
762 282
92 110
622 634
190
92 11098 13
190 98
2009 2010 2011 1Q11 1Q12
2009 2010
Pay-out 2011 1Q11
Yield PN 1Q12
Net Income - ex one-off and regulatory assets and liabilities
Regulatory assets andand liabilities
Regulatory assets liabilities One-off Série3
1 – Gross amount One-off 40
2– Non recurring 2011 : Includes sale of AES Eletropaulo Telecom with a R$ 467 million impact on net income
41. Debt profile
Net debt
2.0x
1.6x 1.6x
1.4x 1.3x 1.4x
2.5 2.4 2.4
0.9x
0.8x 0.9x 0.9x • March, 2012:
2.3 2.4
- Average debt cost: 11.9% p.a.
- Average debt maturity: 6.9 years
2009 2010 2011 1Q11 1Q12 2009 2010 2011 1Q11 1Q12
Net Debt (R$ billion) Gross Debt/Ebitda Adjusted with Fcesp
Net Debt/Ebitda Adjusted with Fcesp
Amortization schedule – principal (R$ million)
1.154
0.5% 72%
579 753
46 496
421 363 389 60 385
28%
70 277 52 282 64
61
533 49 56
351 436 400
302 337 321
228 226
2012 2013 2014 2015 2016 2017 2018 2019 2020 -
CDI
1
IGP - DI
2
Others
2028
Local Currency (ex FCesp) Fcesp
41
1 – Brazilian Interbank Interest Rate 2 – Inflation Index 3 – Pension Fund
42. Capital markets
AES Eletropaulo X Ibovespa X IEE Average daily volume (R$ thousand)
12 meses 1 35,756
C
125 B + 20%
A
115 26,897
24,496
105 21,960
- 4%
95
- 10 %
85
- 19%
75
65
Mar-11 May-11 Jul-11 Oct-11 Dec-11 Feb-12 Apr-12
2009 2010 2011 YTD 20121
Ibovespa IEE² AES Eletropaulo PN AES Eletropaulo TSR³
A Ex dividends: 04/30/2011 B Ex dividends: 08/11/2011
C Material Fact 10/04/2012: technical notes published by Aneel regarding the calculation
of the preliminar tariff review rate, including the regulatory asset basis .
• Market cap4: U$ 2.6 billion
• BM&FBOVESPA: ELPL3 (common shares) and ELPL4 (preferred shares)
• ADRs at US OTC Market: EPUMY (preferred shares)
1 – Information until 04/30/2012. Index: 12/30/2011 = 100 2 – Electric Energy Index 42
3 – Total Shareholder Return 4– Index: 04/30/12. Calculation includes only preferred shares
44. Costs and expenses
Costs and operational expenses1 (R$ million)
415 433 420
433 420
415
351
187 174
187 201 174
112
201
117
239 246 214 245 24678 245
214 51
29
49 66
2008
2009 20102009 2011 2010
1Q11 2011
1Q12
Energy Purchase, Transmission and Connection Charges, and Water Resources
Other Costs and Expenses 2
1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses 44
45. Costs and expenses
Costs and operational expenses1 (R$ million) PMS2 and other expenses (R$ million)
1,306 1,255 1,267
6,745 6,956 254 132
6,431 165
6,745
6,431
1,255 1,267
5,893
1,306
1,255
1,306 5,006 5,129 352 443 513
1,193
970 909
5,689
401
5,125 5,490 348
5,490 1,707 1,937
4,700 5,125 700 647 70 84
4,036 401
4,220 622
348 132
126
1,359 1,535 185
151
2009 2010 2011 1Q11 1Q12 2009 2010 2011 1Q11 1Q12
2008 2009 2010 9M10 9M11
Energy Supply and Transmission Charges
PMS² and Others Expenses PMS² and Others Expenses
Total
Personnel and Payroll Material and Third Party Others
1 – Do not include depreciation and amortization
2 - Personnel, Material, Third Party Services and Other Costs and Expenses 45
46. AES Tiete's expansion obligation
Efforts being made
Privatization Notice Judicial Notice: AES Tietê was In March, 19th the by the Company to
established the Aneel informed summoned to answer a Company‟s appeal
The Company was notified meet the obligation :
obligation to expand the that the issue is Lawsuit filed by the was denied. Thus,
by the State of São Paulo
installed capacity in not related to State of São Paulo, on April, 26th AES
Attorney's Office to present
which requested the • Long-term energy
15% (400 MW) until the concession its understanding on the Tietê presented
2007, either in agreement and fulfillment of the “Thermo São Paulo” contracts (biomass)
matter, having filed its
greenfield projects must be obligation in 24 months. project as the plan
response on time, the totaling an average of
and/or through long addressed with proceedings were ended, An injunction was to fullfill the
term purchase the State of São since no other action was granted in order to have obligation to 10 MW
agreements with new Paulo taken by the Attorney's a project submitted expand the installed
plants Office within 60 days. capacity. • SHPP São Joaquim
- started operating in
July, 2011, with 3 MW
of installed capacity
1999 2007 Aug/08 Oct/08 Jul/09 Sep/10 Sep/11 Nov/11 Apr/12 • SHPP São José -
started operating in
March, 2012, with 4
MW of installed
Company faces restrictions until capacity
Popular Action:
deadline: In response to a Popular Lawsuit:
Due to the plaintiffs failure
• Insufficiency of hydro resources Action (filed by The Company • Thermal SP - Project
to specify the persons that
• Environmental restrictions individuals against the should be named as appealed to the of a 550MW gas fired
Federal Government, Defendants, a favorable State of Sao
• Insufficiency of natural gas supply Aneel, AES Tietê and thermo plant
decision was rendered by Paulo State Court
• New Model of Electric Sector (Law # Duke), the Company the first Instance Court of Appeals and
10,848/2004), which forbids bilateral presents its defense the injunction was
• Thermal Araraquara
(an appeal has been filed)
agreements between generators and before the first instance kept - Acquisition of a
distributors purchase option
46
47. Eletrobras lawsuit
Next Steps:
State-owned In accordance to
Eletropaulo was 1 - The
Eletrobras, after the procedure
spun-off into four appraisal
winning the that was On July 7, the
companies and, procedure (AP)
interest stipulated by 2nd judge determined
according to our Eletrobras and is expected to
Stated-owned calculation Instance Court Eletropaulo and
understanding CTEEP appealed begin by the
Eletropaulo discussion, filed after an appeal CTEEP to present
based on the to the Superior 2nd half of 2012
borrowed money an Execution Suit from AES their
spin-off Court of Justice
from Eletrobras aiming the Eletropaulo, considerations, 2 – AP is
agreement, the (SCJ)
collection of the Eletrobras which occurred in expected to be
discussion was amounts that requested the 1st August concluded in at
transferred to were in default Instance Court to least 6 months
CTEEP appoint an expert
3 - After AP‟s
conclusion, a
1st Instance
Court decision
will be issue
Nov/86 Dec/88 Jan/98 Apr/98 Sep/01 Sep/03 Oct/05 Jun/06 May/09 Dec/10 Jul/11 > In case of an
unfavorable
decision:
4 –Appeal to
the 2nd
Instance Court
State-owned
Eletropaulo and 5 - Collection
Eletrobras The SCJ annulled starts.
Privatization Based on the Eletrobras Presentation of
disagreed on how the 2nd Instance requested the
event . State- spin-off protocol, guaranty
to calculate Court decision
owned he 2nd Instance beginning of the
interest over that and sent the appraisal procedure 6 - Request to
Eletropaulo Court excluded
loan and two Execution Suit before the 1st seize the
became AES AES Eletropaulo
lawsuits, which back to the 1st Instance Court guaranty
Eletropaulo from the lawsuit
were later merged Instance Court
into one, were 7 - Appeals to
initiated the Superior
Courts 47
