2. Operational • Higher energy volume compared to 2Q09: captive 4.7% and total market 6.8% growth
• Losses: commercial losses 70 b.p. lower than 2Q09
• Cash generation of R$ 584 million, 37.1% higher than 2Q09
Financial
• Ebitda totalized R$732 million, 114.2% higher than 2Q09
• Net income of R$ 466 million in 2Q10, 200.6% higher than 2Q09
• Disregarding one-off effects:
– Ebitda of R$ 467 million, 36.6% higher than 2Q09
– Net income of R$ 220 million in 2Q10, 42.3% higher than 2Q09
One-off • AES EP Telecom: financial settlement of the quotas held by AES Eletropaulo. Adding R$
effects 175 million to Company’s net income
• Banco Santos S.A.: judicial lawsuit termination. Positive effect of R$ 70 million in the
net income
• Intermediate dividends distribution amounting R$ 626 million referred to 1H10 results:
Dividends
R$ 3.53/ common share e R$ 3.88/ preferred share
Subsequent • Positive tariff readjustment index of 8.00% to 2010/2011 cycle, applicable from July 4,
events 2010, with an average effect of 1.62% to the consumers
2
3. • Market growth due to industrial clients recovery and higher consumption in all classes
Consumption Evolution - (GWh)1 2Q09 2Q10
+5% +5 % +5% +3 % +5% +17% +7%
10,904
10,212
8,493 8,894
3,917
3,742
2,753
2,626 2,010
1,465 1,541 1,720
660 683
Residential Industrial Commercial Public Captive Market Free Clients Total Market
Sector and
Others
1 – Own consumption not considered
3
4. • Collection rate and losses level reflect the continuous efforts on operational
enhancements
Collection rate – % over Gross Revenues Losses – % last 12 months
103.1
101.1 101.6
12.0
99.5 11.5 11.6 11.8
98.5 11.3
5.0 5.1 5,3 5,3
5.5 4.8
6.5 6.5 6.5
6,5 66.5
6,5 6.5
20071 2008 2009 2Q09 2Q10 2007 2008 2009 2Q09 2Q10
Commercial Losses Technical Losses2
4
1 – The previous calculation methodology 2 - Current Technical Losses used retroactively as reference
5. • 22% higher rainfall volume, comparing 2T10 to 2T09, impacted SAIDI and SAIFI
SAIDI1 SAIFI2
8.49
8.41 7.87
11.34 10.92 10.09
8.90 9.20 11.86 10.47 13.39
5.64 5.20 6.17 5.48 6.73
2007 2008 2009 2Q09 2Q10 2007 2008 2009 2Q09 2Q10
3o 5o 1o 1o
SAIDI (hours) SAIDI Aneel Target SAIFI (times) SAIFI Aneel Target
► 2010 SAIDI ANEEL Target: 9.32 hours ► 2010 SAIFI ANEEL Target: 7.39 times
ABRADEE ranking position among the 28 utilities with more than 500 thousand customers
5
1 – System Average interruption Duration Index 2 – System Average Interruption Frequency Index Sources: ANEEL, AES Eletropaulo and ABRADEE
6. • R$ 71 million invested in customer service and system expansion highlighting the
R$ 35 million related to 48,500 new customers in the quarter
CAPEX – R$ million 2Q10 Investments
Paid by customers
3%
Capex 3%
691
54 55%
516 20%
37
457
47 5%
131 14%
112
6
9
478 637
Customer service / Maintenance
410
125 System expansion
103
Losses recovery IT
Paid by the clients Other
2008 2009 2010(e) 2Q09 2Q10
6
7. • Higher captive consumption (+ 4,7%) and July/2009 Tariff Adjustment were the
main reasons for gross revenue growth
Gross Revenue - R$ million
+15 % 6,692
5,844
2,353
2,101
+16 % 3,418
2,944
1,210
1,051 4,339
+16 %
2,208
3,743
1,893 +16 %
2Q09 2Q10 1H09 1H10
Net Revenue Deductions to Gross Revenue
7
8. • Growth of sector charges and provision reduction during the period contributed to
the cost and expenses level
Operating Costs and Expenses1 - R$ million
+15 %
3,473
3,026
667
655 +2 %
+12 % 1,726
1,541 326
-11 %
367
1,400 2,806
2,371 +18 %
1,174
+19 %
2Q09 2Q10 1H09 1H10
Energy Supply and Transmission PMS² and Other Expenses
Charges
1 - Depreciation not include and other operating income and expenses 2 - Personnel, Material and Services
8
9. • Reduction of operating expenses due to, primarily, lesser provisions and judicial
lawsuit conclusions expenses
Operating Expenses2 – R$ million
(51)
9
(6)
(4) 11
367
341
326
2Q09 Provisions and ADA1 and FCesp Personnel Materials, 2Q10
Contingencies write-offs services
and others
1 - Allowance for doubtful accounts 2 – Depreciation not include and other operating income and expenses
9
10. • Higher consumption, lower expenses with personnel and one-off effects contributed to
Ebitda increase
Ebitda – R$ million
1,102
+58%
732
+114%
697
342
2Q09 2Q10 1H09 1H10
10
11. • Higher total consumption (+6.8%) and AES EP Telecom financial settlement contributed
to Ebitda increase
Ebitda – R$ million
265
315 (226) 51 4 6 (11)
(14)
732
342
2Q09 Net Energy Provisions FCesp ADA and Personnel Other1 AES EP 2Q10
Revenue Supply and and write-offs and taxes Telecom
Transm. Conting.
Charges
1 - Materials, Services and others
11
12. • Non recurring items related to Banco Santos and increase of financial expenses due to
higher debt balance explain the financial result
Financial Result - R$ million Financial Result - R$ million
(without non recurring items)
71
37
2Q09 1H09 2Q09 2Q10 1H09 1H10
2Q10 1H10
(10) (10)
- 260% (36)
(48) (48)
(70)
- 46%
12
13. • Net Income positively impacted by 2009 tariff adjustment, 6.8% growth in the total
market consumption, as well as the non recurring items
Net Income - R$ million Net Income - R$ million
(without non recurring items)
+25%
622 377
+106%
+201% +42%
466 302
302 220
155
155
2Q09 2Q10 1H09 1H10 2Q09 2Q10 1H09 1H10
• Proposal of R$ 626 million in dividends
– Ex dividend date: 08/06/2010
– Payment in two equal installments: 09/15/2010 e 12/07/2010 13
14. • Increase of 37% in the operating cash flow reflecting market growth and 2009 tariff
readjustment. Positive effect of AES EP Telecom quotas, bonds settlement and
debentures issuance
Managerial Cash Flow – R$ million
2Q09 1Q10 2Q10
Inicial Cash 1,258 1,249 1,470
Operating Cash Flow 426 572 584
Investments (113) (135) (115)
Net Financial Expenses (23) (81) (85)
Net Amortizations (54) (14) 265
CESP Foundation (56) (48) (43)
Income Tax (83) (73) (109)
EP Telecom sell - - 308
Free Cash Flow 97 221 804
Dividends (366) - (489)
Final Cash 989 1,470 1,786
14
15. • Enhanced debt amortization schedule without maturity concentration due to recent
debentures issued
Amortization Schedule – Principal – R$ million
1,914
1,361
599
322 342 365 74 416 312
301
71 65 69 84 89
79 553
524
39 525
251 277 296 332 223
56
39 223
2010 2011 2012 2013 2014 2015 2016 2017 2018-2028
Local Currency (ex FCesp) FCESP1
1 - FCesp = Pension Fund 15
16. • Debentures issuances and bond amortization positively contributed with average debt
cost and term
Net Debt Average Cost and Average Term (Principal)
1.8x 1.8x
1.5x 1.7x 7.1 7.0
6.9 7.1
1.3x 6.8
3.2 123.9%
3.0 3.0 2.9 121.8%
113.4%
2.5 106.3%
87.1%
2007 2008 2009 2Q09 2Q10 2007 2008 2009 2Q09 2Q10
Net Debt (R$ billion) Net Debt / EBITDA Adjusted1
CDI² Average Term - Years
with FCesp
16
1 – Last 12 months of EBITDA Adjusted 2 - Brazil’s Interbank Interest Rate
17. 18% growth on the average negotiated volume in 2T10
AES Eletropaulo1 X Ibovespa X IEE Average Daily Volume3 - R$ thousand
Last 12 months¹
26,066
180 25,677 25,832
160 18.4% 21,960
140
17.8%
120
3.5%
100
80
60
Jun-09 Sep-09 Dec-09 Mar-09 Jun-10
2007 2008 2009 2Q10
2Q102
100 -0.6%
-7.8% ELPL6
90
-13.4%
80 IEE
70 IBOV
Mar-10 Apr-10 May-10 Jun-10
17
1 – Index: 06/30/2009 = 100 2 – Index: 03/31/2010 = 100 3 – Preferred shares class B (Without dividends adjustments)
18. 2Q10 results
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.
