Geti 2 t10_call_final_english

2Q10 ResultsAugust, 2010

2

FinancialFinancial Ebitda reached R$ 299 million, with margin of 74%, in 2Q10

Provision in the amount of R$ 9 million related to administrative lawsuit regarding federal tax compensation

Net income of R$ 172 million in 2Q10

1st debenture issuance in the amount of R$ 900 million and pre-payment of the only outstanding debt on May 4, 2010. Exchange of debt brought savings of approximately R$ 14 million in the quarter.

OperationalOperational Energy Generation 33% higher than physical guarantee in 2Q10

Subsequent EventSubsequent Event

Annual readjustment of bilateral contract with AES Eletropaulo by IGP-M at 5.17%; the energy price increased from R$ 152.00/MWh to R$ 159.85/MWh

The Board decided to: (i) not file an autonomous claim against Aneel; and, (ii) summon an Extraordinary General Meeting to deliberate on the matter

Dividend distribution in the amount of R$ 172 million related to 2Q10, representing R$ 0.43 for ordinary shares and R$ 0.47 for preferred shares.DividendsDividends

3

Reservoirs Level- (%) Risk Aversion Curve – Southeast Submarket

AES Tietê reservoirs levels closed at 89% and the stored energy in the southeast region was kept well above the Risk Aversion Curve in 2Q10

72.6 79

.0 73.3

97.2

40.9

90.2

65.5

70.0

54.5

94.3

2009 2Q09 2Q10

94.2

91.0

-

2009 2010 CAR

20

40

60

80

Jan Apr Out

-

2009 2010 CAR

20

40

60

80

Southeast South Northeast North Jul% o

f M

axim

um S

tore

d En

ergy

Source: National Electric System Operator – ONS

4

Maintaining high operational availability. Generated energy 38% higher than physical guarantee in 1H10

Energy Generation – MW Avg.1

130%

1,467 1,4251,545 1,512

115%112%

121% 119%

1,665

2005 2006 2007 2008 2009

1,809

1H10

138%

Generation – MW Avg. Generation / Physical Guarantee

1- Generated energy divided by the amount of period hours

5

Billed Energy – GWh

Billed energy was 5% higher due to greater volume of secondary energy in 2Q10

MRE1

AES Eletropaulo

Spot Market

Other Bilateral Contracts

1H10

10 %

2Q10

3,6055 %

5,653

7,880

132

5,653

1,1461,146

19

2Q09

3,438239

433

2,7472,639

306

580 80

1H09

33

7,135

5,534

1,105

463

949

1 – Energy Reallocation Mechanism

6

2008

59

39

20

2009

13

57

44

2010(e)

58

9

67

2Q09 2Q10

54 15

916

Investments – R$ million

Investments of R$ 16 million in maintenance and modernization of power plants and R$ 1 million in Jaguari Mirim SHPPs1 in 2Q10

Investments 2Q10

1%1%

1

New SHPPs

Investments

Equip. and Maint.

EnvironmentIT

New SHPPs

1 – Small Hydro Power Plants

91%

7%

7

Concluded(PPA1)Concluded(PPA1)

Opportunities to increase installed capacity:

UnderConstructionUnderConstruction

UnderDevelopmentUnderDevelopment

6 MW of co-generation through biomass, contracted for 15 years from 2010

7 MW of hydro generation through SHPPs2 in Jaguari Mirim River– São José SHPP (4 MW) has an estimated start-up in 1H11– São Joaquim SHPP (3 MW) has an estimated start-up in 1H11

550 MW of thermo generation through natural gas– Location has been defined in Nov/2009– Environmental licensing process initiated in March 2010– Technical feasibility study in advanced stage

22 MW of hydro generation through one SHPP, in stage of technical and economic feasibility studies

1 – Power Purchase Agreement 2 – Small Hydro Power Plants

8

2000 - 2003 2005 - 2007

2000– Aneel1 approved the bilateral

contract signed by the Company and AES Eletropaulo valid until the end of 2015

2005– Aneel denied approval to the

amendment– AES Eletropaulo placed a request

for an administrative remedy appeal at Aneel and filed a lawsuit against Aneel

2007– Aneel dismissed AES

Eletropaulo’s administrative remedy appeal and upheld its decision of denying the amendment

August, 2010– The administration of AES

Eletropaulo has chosen to withdraw the lawsuit

– The administration of AES Tietêdecided not to file an autonomous claim against Aneelregarding the extension of the contract due to the remote chance of obtaining a final decision before 2015; and (ii) summon an Extraordinary General Meeting to deliberate on the matter

2010

2003— AES Tietê and AES Eletropaulo

signed an amendment to the bilateral contract, submitted to Aneel for approval, which extended its duration to June 14, 2028

Bilateral Contract with AES Eletropaulo

1 – Brazilian Electric Energy Agency (Regulator)

9

Allocation to 1Q10 of part of annual volume to be sold to AES Eletropaulo contributed for 3% reduction in net revenues

Net revenues – R$ million

1H101H09

4%

2Q102Q09

4033%

819791

517

862

36

832 26

AES Eletropaulo Other Bilateral Contracts CCEE / MRE

392 383

10

4141020

2

10

Costs were impacted by provision related to administrative lawsuit regarding federal tax compensation, increase on energy purchased for resale and spending on equipment and third parties

1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses

Costs and operational expenses1 – R$ million

Energy Purchase, Transmission and Connection Charges, and Water Resources

Other Costs and Expenses2

Operational Provisions

1H101H09

108 103

165186

10%

2Q102Q09

55

37

9010312%57 67

11

16

60

30

11

Ebitda – R$ million

Ebitda Margin

8% reduction on Ebitda, with 74% margin

1H101H09

677667

80% 78%

2%

2Q102Q09

299325

78%74%

8%

12

Financial Result – R$ million

Negative impact due to 1,24 b.p. increase in IGP-M from April to May, 4th 2010. Disregarding debt exchange, the financial result would be reduced in R$ 14 million

(7)

1H09 1H10

(21)

(4)

2Q09 2Q10

378%

(22)

217%

13

Company registered a net income of R$ 172 million in 2Q10 and will distribute 100% of the result

Pay-out

1H101H09

172199

100% 100%

1%

2Q102Q09

411414

13%

100% 100%

Net Income – R$ million

14

Net Debt 2Q10

Cost of debt was reduced from IGP-M + 10% p.a. to CDI + 1,20% p.a.

2Q102008 2009

0.40.4

0.3x0.3x

Net Debt/ EbitdaNet Debt

2Q09

0.40.4

0.4x0.3x

Characteristic of 1st debenture issuance

R$ 900 million

Period of 5 years

CDI + 1,20% p.a. Biannual basis interest payment

Annual amortization and equal installments in the 3rd, 4th and 5th years

Purpose: Pre-payment of Eletrobrás Debt

15

Consolidated Managerial Cash Flow – R$ million

2Q09

814332(9)

(13)

(55)

(20)

236(409)

641

2Q10

615368(8)

(12)

(60)

(328)

(41)0

574

1Q10

574346(16)

(4)

(34)

(33)

(259)(379)

455

Growth of 4% in operational cash flow generation

Initial CashOperational Cash GenerationInvestmentsNet Financial ExpensesNet AmortizationIncome TaxFree Cash FlowDividends and Interest on EquityFinal Cash

16

40% growth in daily average volume traded in 2Q10

1 – Index: 06/30/09= 100 2 - Index: 03/31/10 =100

AES Tietê X Ibovespa X IEE Daily Avg. Volume - R$ thousand

IBOV

IEE

GETI4

12 months

+ 18%

+ 18%

-

+ 2%

8090

100110120

130140

Jun-091 Sep-09 Dec-09 Mar-09 Jun-10

Mar-102 Apr-10 May -10 Jun-10

2Q10

- 1%

-13%

+ 8%

80859095100105110

Preferred Common

2008 2009

2,101

10,187

8,160

14,231

2Q10

2,692

5,468

4,648

8,0869,583

2Q10 ResultsThe 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..