2. 2Q11 Highlights
Operational
Operational • Higher energy consumption: captive market 2.7% and free market 4.9%
• Losses: reduction of 0.7 p.p. when compared to 2Q10
• SAIDI was reduced by 17% and SAIFI by 14% in the last 12 months (June basis)
• Investments with own resources of R$ 153.6 million, 23.3% higher than 2Q10
Financial
Financial • Ebitda amounted R$ 525.2 million, 4.2% higher than 2Q10, disregarding one-off effect of financial
liquidation of AES Eletropaulo Telecom sale to Brasiliana in Jun/10
• Financial result 64.3% higher than 2Q10 excluding one-off effect of the end of litigation concerning
the agreement with Banco Santos in 2Q10
• Net Income of R$ 255.4 million, 6.1% increase compared to 2Q10, disregarding one-off effects
mentioned above
Dividends
Dividends • Interim dividends distribution totaling R$ 291 million, representing 50% of 1H11 results, in the
amounts of R$ 1.64 per common share and R$ 1.80 per preferred share
Regulatory
Regulatory • According to ratifying resolution 1174, AES Eletropaulo tariff reset was postponed from July 4th
2011 due to 3rd cycle undefined methodology
2
3. Market growth driven by the performance of
residential and commercial clients
Consumption Evolution (GWh)¹
+3.5% -1.8% +4.6% +1.6% +2.7% +4.9% +3.1%
11,246
10,904
8,894 9,138
3,917 4,053
2,753 2,879
2,010 2,109
1,541 1,513
683 694
Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market
and Others
2Q10 2Q11
3
1 – Own consumption not considered
4. Losses and collection rate levels reflect the continuous
efforts for internal processes improvements
Losses - (%) Collection Rate (% over Gross Revenues)
11.6 11.8 11.3 102.4 101.6 102.2
10.9 10.6 101.1
98.5
5.1 5.3 4.4 4.8 4.1
6.5 6.5 6.5 6.5 6.5
2008 2009 2010 2Q10 2Q11 2008 2009 2010 2Q10 2Q11
Technical Losses¹ Commercial Losses
4
1 – Current technical losses used retroactively as a reference
5. SAIDI level reflects Company’s continuous
investments. Excluding the effect of the cyclone, the
SAIDI would be 9.87 hours
SAIDI – System Average Interruption Duration Index
22.00
21.00 21.00 21.00 21.00
20.00
19.00 19.00 19.00 19.00 19.00 19.00
18.70
18.00 18.00 18.00 18.00 18.00
16.63
16.08
12.74 12.66 12.72
12.45 12.39 12.22
11.34 12.09
10.92 11.90 11.79 11.65
11.25
10.84 10.60
10.13 10.30 9.91 10.40
9.90 9.88
10.09
9.20 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32 9.32
8.90 8.68 8.68 8.68 8.68 8.68 8.68
AES Eletropaulo Brazil Aneel Reference - AES Eletropaulo
Source: ANEEL and AES Eletropaulo 5
6. Pruning plan contributed to the good
performance of SAIFI
SAIFI – System Average Interruption Frequency Index
12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
11.72 11.74
11.34
11.00 11.00 11.00 11.00 11.00 11.00 11.00
8.49 8.41
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
6.34 6.41 6.29 6.29
6.17 6.16 6.12 6.12
5.96 5.85
5.65 5.61 5.52 5.57 5.51 5.51
5.42 5.44 5.48
5.20 5.29
AES Eletropaulo Brazil Aneel Reference - AES Eletropaulo
Source: ANEEL and AES Eletropaulo 6
7. Extra tropical Cyclone - June 7 to 9
Action Plan: R$ 120 million
Action Plan 2011 – 2012: Action Details
Preventive
42 26 68 • 2011: R$ 39 million as operational expenses and R$
maintenance¹ 36 million as investments
• Expand capacity on clients attendance:
Customer – increase 38% call center positions (150
Attendance
35 9 43 positions)
– contract 300 positions for call center in stand
by condition
– automated attendance increase from 2
thousand call / hour to 50 thousand call hour
Tree trimming 7 7
– double SMS capacity to 100 thousand day
• Deployment of mobile agency and field actions to
Other process
receive indemnifications requests
improvements
2
• Increase on pruning, emergency and construction
teams (580 electricians)
Operational expenses Investments
7
¹ Equipment purchase and increase in maintenance and construction teams
8. Increasing capex: R$ 159 million in 2Q11,
21% higher than 2Q10
CAPEX (R$ million) 2Q11 Investments (R$ million)
784
51
682 26
28 11
41
516 5
5
37
11
34
759
654 +21%
478 159
131
5
6 Maitenance
125 154
Client Service
System Expansion
2009 2010 2011(e) 2Q10 2Q11
Losses Recovery
Capex Paid by Customers IT
Paid by the Clients
Others 8
9. Revenues increased 5% due to residential and
commercial classes expansion (+3.5% and +4.6%)
and tariff readjustment (+1,6%)
Gross Revenue (R$ million)
+7%
6,990 7,466
2,406 2,651
240 324
+5%
3,558 3,732
1,234 1,342
4,344 4,490 131 160
2,193 2,231
1H10 1H11 2Q10 2Q11
Net revenue ex-construction revenue
Construction revenues
Deduction to gross revenue
9
10. Energy purchase cost kept at the same
level benefited by exchange rate impact
Operating Costs and Expenses ¹ (R$ million)
+3%
3,315 3,410
670 710
+3%
1,650 1,704
329 363
2,644 2,700
1,321 1,341
1H10 1H11 2Q10 2Q11
Energy Supply and Transmission Charges
PMS² and Others Expenses
10
1 - Depreciation and other operating income and expenses are not included 2 - Personnel, Material and Services
11. Increase on operating expenses impacted by non-
recurring items aiming at operational improvements
PMS and Other Expenses (R$ million)
16
21 (14)
3 7
363
336 336 336 346
329 329
2Q10 Personnel and FCesp Others ¹ SAIDI and One-off: 2Q11
payroll SAIFI consulting,
improv. IT proj. and
public lighting
¹ ADA, write-off, provisions for contingencies, losses and agreements and others operational expenses. 11
12. Market growth and lower expenses with pension
fund positively contributed to Ebitda
Ebitda (R$ million)
(265)
66 (20)
(21) 14 (23)
5
770
551 529 529 520 520 525
504 504 504
2Q10 One-off: 2Q10 Net Revenues En. purchase Salary Fcesp SAIDI/ SAIFI, Others¹ 2Q11
Eletropaulo ex and trans. adjustment IT, consulting
Telecom sale one-off usage and public light.
liquidation rate exp.
¹ Others: ADA, provisions for conitingencies, losses and agreements and other operational revenues/expenses. 12
13. Financial results positively impacted by exchange rate
(Itaipu) and higher investments income
Financial Results (R$ million) Financial Results (R$ million) – ex one-offs1
78
46
1H10 1H11 2Q10 2Q11
(11) (10) (11) (10)
(28)
1H10 1H11 2Q10 2Q11
+82% +64%
(60)
¹ One-off regarding the receipt of Banco Santos bankruptcy agreement in 2Q10. 13
14. 2Q11 recurring net income in line with the same
period of the previous year
Net Income (R$ million)
709
245 537
486
162
117 44.7
245
255
+9% 582.0
47 - 5% 70
346 376 ! "
194 185 ! " # $ " !
1H10 1H11 2Q10 2Q11
1H10 1H11 2Q10 2Q11
Net Income - ex one-off and regulatory assets and liabilities
Regulatory assets and liabilities
One-off
Ex-dividends date: 08/11/11; Payment date: 09/22/11
14
16. Net debt increase reflects reduction in cash balance
Net Debt Average Cost and Average Term (Principal)
1.3x
0.9x
7.1 6.8
2.4 3.0 106.4% 108.9%
2Q10 2Q11 2Q10 2Q11
Net Debt (R$ billion)
13.0% Efective rate 13.6%
Net Debt/Ebitda Adjusted with Fcesp
1
Average term - Years
% of CDI²
16
1 - EBITDA Adjusted in last 12 months 2 – Brazil’s Interbank Interest Rate
