2. Main highlights in 2008
► 2008
– 3.9% growth of captive market
– 8.3% increase on Ebitda, totalizing R$ 1,696 million
– R$ 1,027 million Net Income, 44.1% above 2007
– + 8.01% average Tariff readjustment
– Finsocial Final Decision generating R$ 299 million in tax credits
– Proposal of R$ 69 million of interest on equity
► Subsequent Events
– Agreement with the bankrupt entity of Banco Santos: Payment of R$ 151 million on January
09, with positive R$ 62 million impact. Accounting write-down moment in analysis.
– Agreement with the São Paulo Municipality in the amounting to R$ 344 million, to be paid in
four annual installments beginning in July 09. The fulfillment of the agreement is bound to
the realization of investments by of São Paulo by Eletropaulo, totaling R $ 172 million
– Dividends’ payment proposal of R$ 615 million in complimentary dividends, to be subjected
to the Annual Shareholders Agreement:
• R$ 3.46 per Common share and R$ 3.81 per Preferred share
2
3. Total market growth of 2.3% in the 4Q08…
Consumption Evolution - (GWh)1 4Q07 4Q08
+6.3% +0.4% +5.2% +1.9% +4.5% -7.2% +2.3%
10,275 10,513
8,756
8,381
3,497 3,719
2,565 2,698
1,675 1,681 1,894 1,758
645 657
Residential Industrial Commercial Public Sector Captive Market Free Clients Total Market
and Others
Average Tariff of Sold Energy – R$ / MWh 4Q07 4Q08
+8.6% +12.6% +10.1% +11.0% +10.1%
279 277 271
257 257 246
229 252 228
205
Residential Industrial Commercial Others Total Market
1 - Own consumption not considered
3
4. ... and 3.3% annual growth
Consumption Evolution - (GWh)1 2007 2008
+6.9% +1.3% +2.3% +1.7% +3.9% +0.4% +3.3%
39,932 41,243
32,577 33,860
13,500 14,427
10,072 10,301
6,475 6,559 7,355 7,383
2,530 2,573
Residential Industrial Commercial Public Sector Captive Market Free Clients Total Market
and Others
Average Tariff of Sold Energy – R$ / MWh 2007 2008
-5.0% +0.2% -2.7% -3.2% -3.1%
284 270 275 267 269 261
247 247
224 217
Residential Industrial Commercial Others Total Market
1 - Own consumption not considered
4
5. Stabilization of new billing system CCS over 2008
Collection Rate – % over Gross Revenue
-1.2 pp
+1.2 pp
99.0 99.1 99.5 98.6
97.8 97.4
2005 2006 2007 2008 3Q08 4Q08
► Cuts and Reconnection – Monthly Average (2007 X 2008) ► Bad debtor list
– Cuts: reduction from 112 thousand to 51 thousand – 2nd Semester 2007: 115 thousand
– Reconnection: reduction from 71 thousand to 36 thousand – 1st Semester 2008: 93 thousand
– 2nd Semester 2008: 443 thousand
► Cuts and Reconnection – Monthly Average (3Q08 X 4Q08)
– Cuts: increase from 34 thousand to 55 thousand
– Reconnection: increase from 33 thousand to 46 thousand
5
6. Electric losses
Loss Reduction – %
-1.3 pp
12.9
12.0 11.5 11.6
6.4 5.5 5.0 5.1
Commercial Losses
6.5 6.5 6.5 6.5
Technical Losses1
2005 2006 2007 2008
► 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
6
7. Best FEC of AES Eletropaulo history
DEC1 and FEC2
12.57 12.79
12.38
11.81
11.34 10.92
8.95 8.68 8.66 8.61 8.49 8.41
8.94 9.08 8.90 9.20
8.21 7.87
6.91 6.83
6.41
5.52 5.64 5.20
2003 2004 2005 2006 2007 2008
DEC (hours) FEC (times) DEC Aneel Standard FEC Aneel Standard
1 – Duration of Interruptions 2 – Frequency of Interruptions
Source: Aneel and Eletropaulo
7
8. Investments of R$ 457 million in 2008
Investments – R$ million Investments 2008
Customer financed
562
10%
Capex
80 12%
457
433 45%
404 5%
47
378 69
49 10%
77
18%
482
410
355 364
301 Customer Service and Maintenance
System Expansion
Customer Financed IT
Loss Recovery Others
2005 2006 2007 2008 2009e
8
9. 3.9% growth of revenue
Gross Revenue - R$ million
+3.9%
11,306 11,751 Deductions from Gross Revenue
Net Revenue
4,113 4,221
+9.8%
2,843 3,121
+4.7%
7,530 1,011 1,131
7,193
+8.6%
1,832 1,990
2007 2008 4Q07 4Q08
► 3.9% growth on captive market during 2008
► 4.5% growth on captive market comparing the 4Q08 x 4Q07
► Positive effect of R$ 201 million in the 4Q07 due to energia livre write-off
9
10. Rising costs of energy purchase
Energy Costs and Operating Expenses1 - R$ million
+6.4%
5,893 PMS2 and Other Expenses
5,537
1,193 Energy Supply and Transmission Charges
1,440
-6.8%
4,700
4,097 1,625 1,515
612 293
1,013 1,222
2007 2008 4Q07 4Q08
► Price per MWh
Tietê: 2007: R$ 131.98 2008: R$ 149.72
Itaipu: 2007: US$ 46.38 2008: US$ 48.02
Auctions: 2007: R$ 67.36 2008: R$ 76.72
Total average price: 2007: R$ 95.84 2008: R$ 101.68
1 - Depreciation not included 2 - Personnel, Material and Services
10
11. Better performance of operating expenses
Accumulated 12 Months – R$ million 4Q08 – R$ million
-17.1%
1,440 (158)
93 (160)
(22) 1,193
-52.1%
612 (98)
(11) (160)
(50)
293
2007 Provisions and ADA1 and RTE and Others 2 2008 4Q07 Provisions and ADA1 and RTE and Others 2 4Q08
Contingencies Write-Off Energia Livre Contingencies Write-Off Energia Livre
1 - Allowance for doubtful accounts
2 - Personnel, Material, Third Party Services, FCESP, Leasing and Rents, Indemnifications, Losses, Publicity, Banking Fees, IPTU among others
11
12. Recovery of Finsocial in 2008
Other Revenues and Expenses – R$ million
80
60
► Finsocial (R$ million)
Other Revenues 89
Financial Revenue 210
Total 299
(61)
(91)
2007 2008 4Q07 4Q08
► The other expenses and revenues now affect the operational result
► R$ 89 million recorded in 4Q08, referring to Finsocial tax credits
► R$ 44 million in 4Q07, related to substation automation system assets write-off
12
13. 8.3% annual growth of Ebitda
12 Months Accumulated – R$ million 4Q08 – R$ million
538 (435)
+8.3%
89 (51)
(169) 158 Ebitda
+280.4%
1,566 1,696 358 (209) 73
89
97
555
146
2007 Net Energy PIS/ Provisions FINSOCIAL Others 2008 4Q07 Net Energy Provisions FINSOCIAL Others 4Q08
Revenue Supply and COFINS ¹ And Revenue Supply and And
Transmission Conting. Transmission Conting.
Charges Charges
1 – Change on PIS/ COFINS taxation system with Tietê on June, 2007
13
14. Improvement of financial result
Financial Result – R$ million
231
129 ► Finsocial (R$ million)
Other Revenues R$ 89
Financial Revenue R$ 210
Total R$ 299
(104)
(145)
2007 2008 4Q07 4Q08
► R$ 210 million of Finsocial monetary adjustment
► R$ 191 million reversal of Cofins - calculation basis enlargement
► R$ 72 million provision of a penalty for the Cofins - taxation increase
► Reduction of 37.1% on financial expenses in 2008
14
15. Continuous net debt reduction
Net Debt Average Cost and Average Term (Principal)
7.8 7.7
6.8 6.6 7.1
4.4x
2.1x 123.3% 125.3%
4.6 120.9%
1.3x 1.2x
107.8%
102.8%
3.7
3.0
2.5
2005 2006 2007 2008 4T07 1T08 2T08 3T08 4T08
Net Debt (R$ billion) Net Debt / Adjusted EBITDA1
CDI2 Average Term - Years
1 - Accumulated 12 Months Adjusted EBITDA 2 – Brazil’s Interbank Interest Rate
15
16. Sustainable amortization schedule
Amortization Schedule – Principal – R$ million
1 - FCesp = Pension Fund
2 - Exchange rate on 12/31/2008 – US$ 1.00 = R$ 2.3370
National Currency (ex. FCESP)
FCESP1
Foreign Currency2 1,162
117
27
117 117 117
524 117
258 117 375
250 250 250
9 50 125
2009 2010 2011 2012 2013 2014 2015 2016-2028
► 99.3% of total debt in local currency
► 0.7% of total debt in foreign currency (R$ 28 million): 96% protected by hedge
► Debt with FCesp extended from 2022 to 2028, causing the decrease of annual amortization from R$
117 million to R$ 102 million
16
17. More than R$ 1.5 billion in cash
Managerial Cash Flow1 – R$ million
2007 1Q08 2Q08 3Q08 4Q08 2008
Initial Cash 1,166 1,334 1,478 1,454 1,373 1,334
Operating Cash Flow 2,488 418 497 613 491 2,019
Investments (407) (80) (60) (107) (126) (374)
Net Financial Expenses (501) (101) (41) (107) (37) (285)
Net Amortizations (182) (4) (30) (21) (40) (94)
CESP Foundation (198) (57) (58) (32) (46) (192)
Income Tax (418) (33) (114) (68) (80) (295)
Dividends (615) (0) (218) (359) - (577)
Free Cash Flow 168 144 (24) (81) 162 201
Final Cash 1,334 1,478 1,454 1,373 1,536 1,536
► The Company keeps its cash invested on Certificates of Deposit (CDs) and Government
Notes, with average profitability of 102.4% of CDI on 2008
► Increase in annual average cash balance:
– R$ 1,106 million in 2007 x R$ 1,411 million in 2008
17
18. Net Income of 2008 over R$ 1.0 billion
Net Income – R$ million Dividend Payout
Dividends1 Pay-out Yield2
100.3% 101.5%
1,027
34.9% 20.3%
14.4%
713 3.2% 1,043
529 715
130
10
2007 2008 4T07 4T08 2006 2007 2008
► Proposed earnings to be submitted to the Ordinary Shareholders Meeting on April 27, 2009
► Proposed Dividends of R$ 615 million ► Interest on Equity2: R$ 69 million
- R$ 3.46 per common share and R$ 3.81 per preferred
- R$ 0.39 per common share and R$ 0.43 per preferred
share
share
- Ex-dividends date: april /28/2009
- Payment: - Ex-interest on equity date: december/20/2008
- 1st installment of R$ - Payment: may/14/2009
307.5 million on may/14/2009
1 - Includes complementary dividends installment of R$ 307.5 million on of the Period
- 2nd 2 – Average Price 3 – Interst on Equity net of taxes
18
december/10/2009
20. Social Responsibility
“Casa da Cultura e Cidadania” Project
► More than 1 thousand children, teenagers and adults
benefited
► Unit location: Vila Guacuri, in São Paulo
► Own and encouraged Investments: about R$ 3 million in 2008
► Activities: theater, dance, music, circus arts, visual arts,
artistic gymnastics and courses of income generation
“Centros Educacionais Infantis Luz e Lápis” - Project Volunteer Project
Distributing Performing to transform Endeavoring in the
“Energia do Bem “ community
► 280 benefited children between 1 and 6 years old
► Own investments amounting R$ 1.5 million in 2008
► Units: Santo Amaro and Guarapiranga
20
21. One 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)
21
22. 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.
