2. 2008 main highlights
► 2008
– 14% growth on EBITDA, representing R$ 1,254 million
– 14% increase on net income, totalizing R$ 692 million
– Proposal to R$ 31 million of interest on equity
► Subsequent Events
– Reversion of R$ 13 million in 1Q09 related to the TUSDgeneration agreement
– Proposal to distribute R$ 167 in complementary dividends, to be deliberated on the Ordinary
Shareholders Meeting:
• R$ 0.42 per common share
• R$ 0.46 per preferred share
2
3. TUSDg agreement
► Dispute resolution of TUSDg from July, 2004 to December, 2008
– Provisioned amount on 12/31/08: R$ 190 million
– Agreement: payment of R$ 177 million in 36 monthly payments of R$ 5 million,
adjusted by Selic, with the 1st installment paid on 01/30/09
– Provision reversal in 1Q09: R$ 13 million
3
4. Operational disposal
Generation Energy – MW Average1
121% 118%
115% 112%
107%
1,543 1,510
1,467 1,424
1,363
2004 2005 2006
1 2007 2008
Generation – MW Average Generation / Assured Energy
► Since 2003, AES Tietê has a historical generation average of 14% above assured energy
1- Generated energy divided by the amount of period hours
4
5. Assured energy contracted
Billed Energy – GWh1
13,421 13,148
573 331
Spot Market 1,740 1,680
MRE
11,108 11,138
AES Eletropaulo
2007 2008
► Assured energy fully contracted by AES Eletropaulo until Dec, 2015:
– IGP-M Indexed
– Price from July 2008 to June/09 – R$ 149.72/MWh
► 2008 MRE Tariff – R$ 7.77/MWh
► CCEE Average Price:
– 2008 – R$ 135.29/MWh
– 2007 - R$ 96.99/MWh
1 - Including energy purchased
5
6. Expansion requirement of 15%
► Requirement: increase installed capacity, by at least, 15% (400 MW), until December 2007:
– Increase the installed capacity in São Paulo State; or
– Purchase energy from new plants, located in São Paulo, through long term agreements (at least 5 years).
► Restrictions to accomplish the requirement:
– Insufficient hydro resources and environmental restrictions to install Thermo plants;
– Insufficiency of gas supply;
– “New Model of Electric Sector” (Law # 10,848/04).
► Aneel, in August 2008, informed that the issue is not linked to the concession.
► The São Paulo State is analyzing the process, considering Aneel decision.
► Popular law action against Federal Government, Aneel, AES Tietê, and Duke.
– Status: Defense filed on first instance in October 2008 by AES Tietê.
6
7. Increasing investments
Investments – R$ million 2008 Investments
101
New SHPP’s1
Investments 33
36%
59
51
47
8 20 48%
12 3%
28 67
22 12%
12 43 39
35
28
22
12
Equip. and Maint. New SHPP’s
2003 2004 2005 2006 2007 2008 2009(e)
IT Environment
1- SHPP Jaguari Mirim and Piabanha
7
8. 11% Increasing revenues
Net Revenue – R$ million
+11%
1,621
1,464
+18 %
359 423
2007 2008 4Q07 4Q08
► 13.44% readjustment on AES Eletropaulo PPA from July 2008
► Positive balance in 4Q07 as a consequence of the reclassification on PIS/COFINS tax basis in 2Q07
(R$ 26 million on net revenue and operational provisions)
8
9. Costs and expenses
Accumulated 12 months – R$ million 4Q08 – R$ million
18 431
430 (73) 13
17
26
4 121
7
11
26
74
2007 Non- Non- Power Transm. & Other 2008 4Q07 Non-Recurring Power Transm. & Other 4Q08
Recurring Recurring Purchased Connection Costs and Event Purchased Connection Costs and
Event Event for Resale Charges Operating PIS/COFINS in for Resale Charges Operating
TUSDg PIS/COFINS Expenses 2007 Expenses
in 2007
9
10. 14% increase on 2008 Ebitda
Accumulated 12 months – R$ million 4Q08 – R$ million
126 1,254
73
1,099
(43)
20 (4)
302 319
2007 Non- Sales1 Other Costs 2008 4Q07 Sales1 Other Costs and 4Q08
Recurring and Expenses2 Expenses2
Event
TUSDg
1 - Sales: Net revenue less sales costs 2 - Does not include depreciation and amortization
10
11. Better financial results in 4Q08
Financial Result – R$ million
2007 2008 4Q07 4Q08
+55% (24)
(54)
(120)
-33 %
(159)
► 2008 IGP-M: 9.81% vs. 2007 IGP-M 2007: 7.75%
► Average financial investment balance: R$ 773.4 million (2008) vs. R$ 669.9 million (2007)
11
12. Sustainable profitability and dividend payment
Net Income – R$ million Dividend Payout – R$ million
Net Margin Dividends Pay-out Yield PN
43% 100 % 100 % 100 %
42%
+14%
692 12 % 12 %
609 10 %
46% 47%
614 693
609
+20%
166 198
2007 2008 4Q07 4Q08
2006 2007 20081
► Proposed earnings to be submitted to the ordinary shareholders meeting on April 27, 2009
► Complementary dividends of R$ 167 million ► Interest on Equity (IE): R$ 31 million
– R$ 0.42 per common share – R$ 0.08 per common share2
– R$ 0.46 per preferred share – R$ 0.09 per preferred share2
– Date ex-dividends: 04/28/2009 – Ex-IE date: 12/20/2008
– Payment: 05/07/2009 – Payment: 05/07/2009
1 - including proposed complementary dividend 2 - Gross amount
12
13. Strong cash flow generation
Managerial Cash Flow1– R$ million
2007 1Q08 2Q08 3Q08 4Q08 2008
Inicial Cash 688 634 815 673 783 634
Operating Cash Flow 1,116 262 279 340 337 1,219
Investments (46) (4) (12) (14) (22) (52)
Net Financial Expenses (72) (15) (14) (13) (7) (49)
Net Amortization (197) (46) (46) (50) (52) (194)
Income Tax (247) (15) (16) (19) (17) (67)
Dividends and IoF (608) 0 (334) (134) (188) (656)
Free Cash Flow (54) 181 (142) 110 53 202
Final Cash – Parent Company 634 815 673 783 836 836
Final Cash of Subs. And Assoc. Comp. 5 7 8 5 5 5
Final Cash 638 821 680 788 840 840
► The Company keeps its cash invested on Certificates of Deposit, with average profitability of 102.1% of
CDI in 2008
► Increase of the average financial investment balance:
– R$ 670 million in 2007 x R$ 773 million in 2008
► Investments – SHPP São José and São Joaquim, on Jaguari Mirim River, São Paulo State
1 - Amounts rounded up
13
14. Lower debt
Net Debt
1.4x
0.7x 0.6x 0.6x 0.6x
0.3x 0.3x
Net Debt (R$ billion)
1.1
Net Debt / Ebitda
0.7 0.7 0.7 0.7
0.4 0.4
2004 2005 2006 2007 2008 4Q07 4Q08
► Eletrobrás debt
– Balance: R$ 1,216 million
– Monthly amortization
– Maturity: May 15, 2013
– Interest of 10% p.a. and monetary adjustment by IGP-M
14
16. Social responsibility
“Casa da Cultura e Cidadania” Project
More than 3 thousand children, teenagers and adults benefited
Units location: Barra Bonita, Lins, São José do Rio Pardo and Caconde
Own and encouraged investments : about R$ 9 million in 2008
Activities: theater, dance, music, circus arts, visual arts, artistic
gymnastics and courses of income generation
“Energia do Bem” Project
Launched in December 2008
Objective: encourage employee to transform the low income
communities
and develop non governmental institutions
Distributing Performing to Endeavoring in
“Energia do Bem “ transform the community
17. Another year of recognition
► Maintenance on 2009 Corporate Sustainability Index (BMF&Bovespa – Nov.08)
► One of the 20 model corporation on sustainability on Brazil (Guia de Sustentabilidade da Revista EXAME –
Oct.08)
► One of the 150 best corporations to work (Revista Você S.A. / EXAME – Sep. 08)
► Best performance on electricity industry sector for Valor 1000 (Jornal Valor Econômico – Jul.08)
► Most profitable corporation on the electricity industry (Guia Maiores e Melhores (Revista EXAME – Jul.08)
► Most profitable company in the last 5 years among the 500 largest publicly companies in Brazil
(Revista Conjuntura Econômica, da FGV – Jul.08)
17
18. 2008 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.
18
