Apimec presentation 03-31-2009

Apimec

March, 2009

AES AES BrasilBrasil OverviewOverview

2

► The Group consists of approximately 6 thousand employees, attending over 6 million clients

AES Brasil in 2008

Distributed Energy: 41,243 GWh

Installed Capacity: 2,651 MWNet Extension : 2,092 km

Net Extension: 2,017 km

Distributed Energy : 8,891 GWh

Negotiated Energy: 2,555 GWh

Installed Capacity: 640 MW

Safety, number 1 value of AES Safety, number 1 value of AES BrasilBrasil GroupGroup

3

► Over R$12 million invested

► Tolerance Zero Program

► Safety with population: TV, Radio, Newspaper (mass media)

► Culture evolution of safety at AES Brasil Group

Reduction of Accidents

Own Employees + Contracted

5 Values of AES Brasil

► Safety at first

► Acting with integrity

► Honor commitment

► Search of excellence

► Be fulfilled at work

178

87

2007 20082006

50

111

Recent changesRecent changes

4

Higher Operational Performance in 2008

Finance Restructuring by 2005 to 2008

Higher Financial Result in 2008

► FEC: lowest index in AES Eletropaulo’s history, 5.20 in 2008

► Avoiding fraud: AES Eletropaulo regularized 450 thousand illegal connections since its privatization

► Energy generation: AES Tiete generated an average of 14% above its assured energy in the last 6 years

► Amortization schedule: Average term of 4.1 years in 2005 to 5.7 years in 2008

► Reduction of financial cost: from 16.2% p.a. in 2005 to 13.3% p.a. in 2008

► No relevant amortizations in 2008 and 2009

► Net income of R$1.7 billion

► Balance of R$ 3.0 billion

AES AES BrasilBrasil ResultsResults

5

Investments – R$ million Ebitda – R$ million

Net Debt – R$ million Net Income – R$ million

2007 2008

779714

2006

636

+ 22%

2007 2008

3.2342.490

2006

3.284

- 2%

2007 2008

1.695

549

2006

1.415+ 20%

2007 2008

4.2225.070

2006

7.431- 43%

Social Responsibility

March, 2009

6

► 280 benefited children between 1 and 6 years old

► Own investments amounting R$ 1.5 million in 2008

► Units: Santo Amaro and Guarapiranga

► Over 4 thousand children, teenagers,and adults have been benefited

► Own and encouraged investments: approximately R$ 12 million in 2008

► Activities of acting, dancing, circus arts, visual arts, music, gymnastics, courses of income generation, and education of safe use of electrical power and the right use of natural resources

7

Social responsibilitySocial responsibility

“Casa da Cultura e Cidadania” Project

“Centros Educacionais Infantis Luz e Lápis” - Project

8

► Launched in December 2008;

► Objective: encourage employee to transform the low income communities and develop non governmental institutions;

► Over 1.4 thousand volunteers registered (25% of AES Brasil total employees).

Volunteer Program

Social responsibilitySocial responsibility

Apimec

March, 2009

AES Eletropaulo overviewAES Eletropaulo overview

► Largest electricity distribution company in Latin America

► Serving 24 municipalities in the São Paulo Metropolitan area,

including the capital

► 4,141 directed employees

► 5.8 million of consumption units

Concession Area

Regional West

Regional East

Regional South Regional ABC

Regional North

10

2008 Consumption2008 Consumption

1 – Own consumption not considered 11

Free Clients

Commercial

15.9%15.9%

6.2%6.2%

35.0%35.0%

25.0%25.0%

Total Consumption Evolution - (GWh)1

Free Clients

2006 2007 2008

410410

38,183 39,93241,243

Captive market

31,65631,656

6,5276,527

32,57732,577

7,3557,355

33,86033,860

7,3837,383

+ 8%

Consumption Share - (GWh)1

17.9%17.9%

Residential

Others

Industrial

Investments amounted up to R$ 457 million in 2008Investments amounted up to R$ 457 million in 2008

Customer Financed

Investments Breakdown – R$ million Investments 2008

4747

2006 2007 2008 2009(e)

301301364364

410410

6969378378

433433457457

482482

7777

8080

562562

10%10%

5%5%

12%12%

18%18%

10%10%

45%45%

Customer Service and System Expansion

Customer Financed

Loss Recovery

Maintenance

IT

Others

Capex

12

Best FEC in AES Eletropaulo historyBest FEC in AES Eletropaulo history

1 – Duration of interruption 2 – Interruption frequency

Source: Aneel and Eletropaulo13

DEC1 e FEC2

11.81 11.34 10.92

9.208.907.87

2006 2007 2008

DEC (hours) FEC (times)DEC Aneel Standard FEC Aneel Standard

8.618.49 8.41

5.64 5.205.52

2006 2007 2008

ABRADEE ranking position between 28 distributors with over 500 thousand consumers

3o3o 3o 1o

14

Operational indexesOperational indexes

► Cuts and Reconnection – Monthly Average (2007 X 2008)– Cuts: reduction from 112 thousand to 51 thousand

– Reconnection: reduction from 71 thousand to 36 thousand

► Bad debtor list 2008: 536 thousand

Collection Rate – % over gross revenue Loss Reduction – %

► Fraud and Illegal Connections (2008)– 435 thousand inspections and 58 thousand frauds

detected

– 75 thousand illegal connections regularized

1 - Current Technical Losses used retroactively as reference

2008

97.8

2007

99.5

2006

99.1

200820072006

5.55.5 5.15.1

6.56.5 6.56.5

11.612.0

5.05.0

6.56.5

11.5

Commercial Losses Technical Losses1

- 1.3 p.p. - 0.4 p.p.

10% revenue increase10% revenue increase

15

2007 2008

7,5297,193

2006

6,852

+ 10%

Regulatory WACC (%)

2007 20082006

1,7661,6961,566

17.115.1

20072003

Gross Revenue – R$ million Ebitda – R$ million

EMBI+ BR 4.63% 2.21%

Selic Target 16.50% 11.25%

2008 Net income exceeded R$ 1.0 billion2008 Net income exceeded R$ 1.0 billion

16

Net Income – R$ million

2007 2008

1,027

713

2006

373

Dividend payout – R$ million

34.9%

100.3% 101.5%

3.2%

14.4%20.3%

130 715

1,043

Dividends1 Pay-out Yield2

► Payment of 101.5% of net income in 2008 in form of dividends and IoE

2007 20082006

+ 175%

1 - including proposed complementary dividend 2 - Gross amount

Maintenance of net debt reductionMaintenance of net debt reduction

1 – Last 12 months of adjusted Ebitda 2 - Fundação Cesp = Pension Fund 3 – Exchange Rate in 12/31/2008 – US$ 1.00 = R$ 2.337017

► Extension of maturity of the Mathmetical Reserve Contract Adjustment with Fundação Cesp from 2022 to 2028

► AEs Eletropaulo average debt cost is CDI + 0.36% p.a.

Net Debt

9

524

250 250 25050 125

375258

117

117 117 117

117117

1,162

27

2009 2010 2011 2012 2013 2014 2015 2016-2028

National Currency (w/out FCESP)

Amortization Schedule – R$ million

Net Debt / AdjustedEbitda1

3.73.0

2.5

2.1x

1.3x 1.2x

2007 20082006

Net Debt (R$ billion) FCESP2 Foreign Currency3

18

One more year of awardsOne more year of awards

► Maintenance on ISE (Sustainability Index) for 2009 (BM&FBovespa – Nov.08)

► National Quality Award, company recognized as a reference on global management (National Quality Foundation – Oct.08)

– Finalist company category

► Value Creation Prize for Shareholders in the Sector, in the category Eletric Energy (Abrasca -Associação Brasileira das Companhias Abertas – Aug.08)

► Most acknowledged company on sustainability among companies from the public sector (Revista Imprensa – May.08)

Corporate GovernanceCorporate Governance

19

AES Eletropaulo X Ibovespa X IEE

50

60

70

80

90

100

110

120

95

100

105

110

115

120

125

130

20081

20092

1 - Index –12/29/07 = 100 2- Index – 12/30/08 = 100 3 – Preferred shares Class B

dec-082 jan-09 feb-09 mar-09

dec-071 feb-08 apr-08 jun-08 aug-08 oct-08 dec-08 2005

4,171

2006 2007 2008

7,508

26,066 25,677

+80.0%+80.0%

+247.2%+247.2%

Daily Average Volume3 - R$ thousand

IBOV

IEE

ELPL6

-29.9%

2.8%

18.1%

-11.6%

-41.2%

3.6%

Apimec

March, 2009

AES AES TietêTietê overviewoverview

► 30 year concession, expires in 2029

► 10 hydroelectric plants in the State of Estado de São Paulo at Tietê, Pardo

and Mogi Guaçu rivers

► Installed capacity 2,651 MW

► Since 2005, 100% of net income distributed as dividends and IoE

Concession Area

UHE Bariri

UHE Nova Avanhandava

UHE Ibitinga

UHE Barra Bonita

UHE Promissão

UHE Água Vermelha

PCH Mogi-Guaçu

UHE Euclides da Cunha

UHE Caconde

UHE Limoeiro

21

Operational disposalOperational disposal

22

Energy Generation – MW average1

Generation – MW Average

Generation / Assured Energy

2006 2007 2008

1,4241,543 1,510

112%112%121%121% 118%118%

Billed Energy– R$ million

AES Eletropaulo MRE

Spot Market

13,421

573

1,740

11,108

13,148

330

1,680

11,138

2006 2007 2008

12,774536

1,130

11,108

1- Generated energy divided by the amount of period hours

Investments up to R$ 59 million in2008Investments up to R$ 59 million in2008

23

Investments – R$ million 2008 Investments

1- SHPP Jaguari Mirim and Piabanha

36%36%

3%3%

12%12%

48%48%

Equip. and Maint.

EnvironmentIT

New SHPP’s

67671212

88

3333

12

2228

4751

59

101

393935354343

2020

New SHPP’s1

Investments

28282222

1212

2003 2004 2005 2006 2007 2008 2009(e)

17% increase in revenues17% increase in revenues

24

Gross Revenues – R$ million Ebitda – R$ million

2007 2008

1,6211,464

2006

1,387

+ 17%

2007 2008

1,254

1,099

2006

1,097

+ 14%

Sustainable profitability and dividend paymentSustainable profitability and dividend payment

► 100% payout of net income throughout IoE and dividends

25

Net Income – R$ million Dividend Payout – R$ million

2006

100 %

2007

100 %

2008

100 %

12 % 10 % 12 %

614 609692

Dividends1 Pay-out Yield PN2

2007 20082006

609692

614

+ 13%

1 - including proposed complementary dividend 2 - Gross amount

DebtDebt

► Eletrobrás Debt

– Balance: R$ 1,216 million– Monthly amortization– Maturity: in May 15, 2013– Interest of 10% p.a and monetary adjustment of IGP-M

Net Debt (R$ billion)

Net Debt / Ebitda

2006 2007 2008

0.7

0.4

0.7

0.3x0.6x0.6x

Net Debt

26

Another year of recognitionAnother 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)

28

Corporate governanceCorporate governance

AES Tietê X Ibovespa X IEE – 12 Months1 Daily Average Volume - R$ thousand

2005 2006 2007 2008

+72 %+72 %

+54 %+54 %

3,325

5,761

5,4685,531

1,724

4,188

2,6923,566

1,573

1,601

8,1609,097

Preferred Common

1 - Data Base: 12/28/07 = 100 2 – Data Base: 12/29/08 = 100

IBOV

IEE

GETI4

+ 13%

+ 4%+ 3%

- 11%- 12%

- 41%

40

60

80

100

120

Dec-071 Mar-08 Jun-08 Sep-08 Dec-08

80

100

120

Dec-082 Jan-09 Feb-09

2008

2009

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.