4Q11 Results

March, 2012

Financial • Ebitda of R$ 2,847.9 million, increase of 18.0% when compared with 2010

• Net Income of R$ 1,572.1 million, 16.7% higher than in 2010

• Receipt of the compensatory payment from the sale of AES Eletropaulo Telecom to TIM, with a positive impactof R$ 707.3 million in Ebitda and R$ 466.8 milion in Net Income

Operational • Increase of 4.1% in energy consumption within Company’s concession area

• Implementation of the Action Plan in 2011 resulted in a reduction of 13.6% in SAIDI and 6.6% in SAIFIbetween January, 2011 and February, 2012

• Investments of R$ 738.7 million in 2011, 8.3% higher than in 2010

2

Dividends • The Administration proposes dividends distribution in the amount of R$ 911 million, representing 50% of 2011distributable income plus interest on equity, composed of R$ 5.14 per common share and R$ 5.65 per preferredshare

• The amount of complementary dividends is R$ 547 million, equivalent to R$ 3.08 per common share andR$ 3.39 per preferred share

2011 Highlights

3

CorporateGovernance

• Maintenance of AES Eletropaulo’s shares in the ISE- Corporate Sustainability Index of BM&FBovespa –portfolio for the 7th consecutive year

Regulatory• In December, 2011, Aneel defined the methodology of tariff reset for the 3rd cycle

• In February, 7th 2012, Aneel approved the application for the Company of the tariff reset and readjustementjointly on July 4th, 2012

• According to the Material Fact released on 02/27/2012, Company’s best expectation for the possible impact in2H11 Ebitda arising from the postponing of the 3rd Cycle of Tariff Reset for AES Eletropaulo is R$ 354 million,which adjusted by IGP-M, totalize R$ 357 million

• Reversion to “special obligations” of the revenues from exceeded demand and reactive surplus billed in 2H11,which totaled R$ 56.5 million

2011 Highlights

4

Action Plan: R$ 242 million in 2011-2012

Concluded in 2011

Increase of 212 emergency teams, totalizing 353 teams trained toperform attendances in powered grid

hiring and training of 580 maintanance and construction electricians hiring of 30 additional prunning electricians 38% increase in call center positions (150 positions) doubling of SMS receipt capacity to 100 thousand / day increase of call center service capacity by 27 times from 2 thousand to54 thousand calls / hour 300 additional stand-by positions in call center for emergencysituations

increase of 120 emergency teams, totaling 473 teamsDecember/11 to March/12

5

Market growth driven by residential, commercial and free clients performances

Consumption evolution (GWh)¹

1 – Own consumption not considered

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

15,546

6,137

11,081

2,671

35,434

7,911

43,34516,408

5,996

11,614

2,799

36,817

8,284

45,101

2010 2011

+5.5% -2.3% +4.8% +4.8% +3.9% +4.7% +4.1%

11.90

12.4512.74 12.66 12.72

12.39 12.22 12.0911.79 11.65

11.2510.84

10.6010.13 10.30

9.91 9.90 9.88

10.40 10.3710.59

10.3010.62

10.42 10.369.87

9.1610.09

9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32

8.68 8.68 8.68 8.68 8.68 8.68 8.68 8.68 8.68 8.68 8.68 8.68 8.67 8.67

AES Eletropaulo Aneel Reference - AES Eletropaulo6

SAIDI reduction since October, 2011 as a result of the Action Plan initiatives

Source: ANEEL and AES Eletropaulo

SAIDI – System Average Interruption Duration Index

-13.6%

6.176.34 6.41 6.29 6.29 6.16 6.12 6.12

5.96 5.855.61 5.52 5.42 5.29

5.57 5.44 5.51 5.51 5.48 5.48 5.595.42 5.54 5.47 5.45 5.37

4.94

7.87

7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39

6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.87 6.87

AES Eletropaulo Aneel Reference - AES Eletropaulo

7

SAIFI remains below the regulatory limit

SAIFI – System Average Interruption Frequency Index

Source: ANEEL and AES Eletropaulo

-6.6%

0

100

200

300

400

500

600

700

800

2010 2011 2012(e) 4Q10 4Q11

654 717794

292203

2822

46

76

682739 841

299

209

Capex Paid by Customers

8

Investments of R$ 739 million in 2011 and forecast of R$ 841 million for 2012

-30%

CAPEX (R$ million) 2011 Investments (R$ million)

227

172

189 35

39 22 55

Maintenance

Customer Service

System Expansion

Losses Recovery

IT

Paid by the Clients

Others

9

Revenues increased by 4% due to residential,commercial and free clients expansion

-3%

+4%

Gross Revenues (R$ million)

2010 2011 4Q10 4Q11

8.988 9.097

2.345 2.258

709 739

306 206

5.017 5.405

1.323 1.373

14.714 15.240

3.975 3.838

Net revenues ex-construction revenues

Construction revenues

Deduction to Gross Revenues

2010 2011 4Q10 4Q11

5,490 5,689

1,454 1,469

1,255 1,272

285 363

6,745 6,961

1,739 1,832

Energy Supply and Transmission Charges

PMS² and Others Expenses10

+5.3%

Energy purchased cost mainly impacted by the readjustment of the contract with AES Tietê,energy from

auctions and tax reversal on commercial losses

+3.2%

+3.6%

+1.1%

+27.2%

+1.4%

Operating Costs and Expenses ¹ (R$ million)

1 - Depreciation and other operating income and expenses are not included 2 - Personnel, Material and Services

2010 One-off 2010 Ex one-off

Personnel and Payroll

FCesp Material and Third

party

Others 2011 Ex one-off

São Paulo Municipality agreement

Action Plan 2011-2012

Tax and labor prov. Reversals

2011

1,255 1,2551,416 1,416 1,403 1,403 1,341 1,341 1,277 1,277 1,272 1,272

160 43 (56) 4 (66) (64) 68 (73)

11

Recurring PMSO drop due to cost control and lower pension plan expenses

2

PMS and other expenses (R$ million)

1 – São Paulo Municipality agreement and labor reversal2 – Fcesp is the pension plan3– Others: ADA, other contingencies provision, losses and agreements and other operational expenses

1 3

12

Captive market good performance, costs control and sale of AES Eletropaulo Telecom

positively impacted the Ebitda

1 – Sale of AES Eletropaulo Telecom, São Paulo Municipality agreement and labor reversal2 - Compensatory payment from sale of AES Eletropaulo Telecom, tax reversal on commercial losses, Sao Paulo Municipality agreement, tax and labor reversal and Action Plan 2011-2012

Ebitda (R$ million)

2010 One-offs¹ 2010ex one-offs

Net Revenues Parcel A costs PMSO and others

revenues and expenses

2011ex one-offs

One-offs² 2011

2,413

1,987 1,987 1,987 1,838 1,838 1,983 1,983

2,848

(426)

138 (288) 145

865

13

Financial results influenced by lower level of non-recurring items

103

-21

31

-22

Financial Results (R$ million)

2010 2011 4Q10 4Q11

14

+121%

Pay-out of 50% of the distributable income + interest on equity and

constitution of special reserve

+17%

Estimated dates: Ex-dividends: 04/17/12; Payment: 05/15/12

Net Income (R$ million)

Net income - December 31, 2011 in IFRS 1.572,1 Realization of equity valuation adjustments 95,9 Prescribed Dividends and JSCP 8,1 Legal reserve (5%) - Distribution basis 1.676,1 Interim dividends distributed 291,0 Interest on equity applied - 12/31/2011 73,0 Complementary devidends proposed 547,1 Special Reserve 765,0

2011 Dividends (R$ Million)

2010 2011 4Q10 4Q11

762 680

165 135

236 241

65 27

350 652

81525

1,348

1,572

311

687

Net Income - ex one-offs and regulatory assets and liabilities

Regulatory assets and liabilities

One-offs

2010 2011

1,664 1,390

2010 2011

2,694 2,416

15

-10%

Cash generation mainly impacted by the increase in Parcel A costs

-16%

Operational Cash Generation (R$ million) Final Cash Balance (R$ million)

161 - Adjusted Ebitda for the expenses related to liabilities with pension plan in the last 12 months

Reduction in net debt reflects the amortization of debentures and lower debt with pension plan

13.2% 12.1%Effective rate

Average Cost and Average Term (Principal)Net Debt1.6x

1.3x

Gross Debt/Ebitda Adjusted with Fcesp

0.9x0.8x

Net Debt/Ebitda Adjusted with Fcesp

2010 2011

2.4 2.3

Net Debt (R$ billion)

2010 2011

110.0 110.2

% of CDI

7.2 6.7

Net Debt/Ebitda Adjusted with Fcesp

The statements contained in this document with regard to thebusiness prospects, projected operating and financial results,and growth potential are merely forecasts based on theexpectations of the Company’s Management in relation to itsfuture performance.Such estimates are highly dependent on market behavior andon the conditions affecting Brazil’s macroeconomicperformance as well as the electric sector and internationalmarket, and they are therefore subject to changes.

4Q11 Results