2Q12 Results

August, 2012

2

Net revenue of R$ 535 million, 31% greater than 2Q11

Ebitda reached R$ 404 million, with margin of 76%

Net income of R$ 229 million, an increase of 43% when compared with 2Q11

Energy generation 36% higher than physical guarantee and 8% greater than the total generated in 2Q11

Investments totaled R$ 17 million in the modernization of Nova Avanhandava (347 MW) and Ibitinga (132

MW) power plants

Portfolio of other bilateral contracts (2012-2016) closed the quarter with 101 MWavg, an increase of 197%

compared to 2Q11

Bilateral contract with AES Eletropaulo adjusted from R$ 173.68/MWh to R$ 182.61/MWh.

Dividends distribution of R$ 250.7 million, related to 2Q12 results, corresponding to R$ 0.63 per common

share and R$ 0.69 per preferred share. Payment will occur on August 27, 2012.

In July 2012, the Company sold 138 MWavg through bilateral contracts, totaling a 239 MWavg portfolio, of

which 200MWavg were sold in 2012.

2Q12 Highlights

Subsequent EventsSubsequent Events

OperationalOperational

FinancialFinancial

3

Higher PLD price in the quarter favoredrevenue in the spot market

Reservoirs Level inSIN1 PLD2 – Monthly Average (R$/MWh)

Southeast/ Middle-West

South Northeast North

85%

68%

93%86%

73%68% 66%

94%

2Q11 2Q12

1- Interconnected National System

2- Spot Market Average Price

130%

125% 124%

2009 2010 2011 2Q11 2Q12

1,665 1,599 1,582 1,6041,731

Generation - Mwavg

141%136%

Generation/Physical guarantee

44

Operational availability of the plants remains high, even with the reduction in the level of reservoirs

93% 81%

Reservoirs level of AES Tietê’s power plants1 Energy generation (MW average3)

130%

125% 124%

2009 2010 2011 2Q11 2Q12

1,665 1,599 1,582 1,6041,731

Generation - Mwavg

141%136%

Generation/Physical guarantee

3 – Generated energy divided by the amount of hours in the period

A. Vermelha(11.0 km 2)

B. Bonita(3.6km 2)

Promissão(8.1 km 2)

Caconde(0.6 km 2)

A. Vermelha Promissão B. Bonita Caconde

89

% 97

%

95

%

94

%

65

%

97

% 95

%

70

%

2Q11 2Q12

A. Vermelha Promissão B. Bonita Caconde

89

% 97

%

95

%

94

%

65

%

97

% 95

%

70

%

2Q11 2Q12

1 – As of 06/30/2012

2 – Reservoirs volume

Average:

5

88%

3%9%

Equipamentos e Manutenção

Novas PCHs

Projetos de TI

86%

11%3%

Equipment and Maintenance

New SHPPs

IT Projects

Investments in 2Q12Investments (R$ million)

1 - Small Hydro Power Plants

Investments in 1Q12 mainly allocated to the modernization of Nova Avanhandava and Ibitinga power plants

2010 2011 2012(e) 2Q11 2Q12

70

156

28 19

12

19

61

82

175

174

3420

Investments New SHPPs1

6

- Project will not participate in 2012 auctions (A-3 and A-5 due to

gas unavailability

- Environmental License was restored after the decision of São Paulo State

Court of Justice

- Next steps: Obtainment of the installation license

- Project will not participate in 2012 auctions (A-3 and A-5 due to

gas unavailability

- Next steps: Obtainment of the installation license

Expansion Obligation

“TermoSP” Project (550 MW)

“Termo Araraquara” Project (579 MW)

1H11 1H12 2Q11 2Q12

5,034 5,672

2,508 2,793

1,425 2,182

838 925

851

911

426 339

201 297

93 135

7,510 9,061

3,865 4,192

1Q10 1Q11

52 108643 424 566 587

3,015 2,526

4,276 3,645

AES Eletropaulo Energy Reallocation Mechanism Spot Market Other Bilateral Contracts

7

1

+15%

+21%

Billed Energy (GWh)

1- ERM – Energy Reallocation Mechanism

Higher energy volume sold in 2Q12 due to the seasonality of the bilateral contract with AES Eletropaulo and energy sold in

ERM¹

1H11 1H12 2Q11 2Q12

768936

382 459

32

74

1556

26

66

1220

826

1075

409535

8

+30% +31%

1Q10 1Q11

7 1016 24

437 386

AES Eletropaulo Spot/Energy Reallocation Mechanism Other bilateral contracts

Net revenue (R$ million)

Change in seasonality and readjustment in bilateral contract,

besides the higher spot prices contributed

for the net revenue expansion

9

Operational costs and expenses¹ (R$ million)

1 – Do not include depreciation and amortization

1Q11 Energy Purchased for Resale

Locks Maintenance

Operational Provisions and Other Expenses

Personnel, Material and Third-party services²

Transmission and Connection

Financ. Comp. For Use of Water Res.

1Q12

78

114 117

119

75 4 3

1Q11 Energy Purchased for Resale

Locks Maintenance

Operational Provisions and Other Expenses

Personnel, Material and Third-party services²

Transmission and Connection

Financ. Comp. For Use of Water Res.

1Q12

78

114 117

119

75 4 3

1Q11 Energy Purchased for Resale

Locks Maintenance

Operational Provisions and Other Expenses

Personnel, Material and Third-party services²

Transmission and Connection

Financ. Comp. For Use of Water Res.

1Q12

78

114 117

119

75 4 3

Increase in expenses with energy purchased, transmission and connection charges and non-recurring event of

equipments write-off

2T11 Energia Elétrica Comprada para

Revenda

Baixa de Ativos Pessoal, Material e

Serv de Terc²

Transmissão e Conexão

Comp. Financ. Utiliz. Rec.Híd.

Manutenção das Eclusas e Outras

Depesas Operacionais

2T12

105131

125 3 3 2 1

2Q11 2Q12Locks Maintenance and Other Operational

Expenses

Assets write -off

Personnel, Material and Third-party

services

10

Ebitda 33% higher, with margin of 76% in 2Q12

Ebitda (R$ million)

1H11 1H12 2Q11 2Q12

643827

304 404

EBITDA

78%

77%

74%76%

EBITDA Margin (%)

-24 -26

-13 -15

11

Financial result influenced by the increase in net debt impacted by the reduction in cash balance

2Q11 2Q121H11 1H12

+17%

+7%

Financial Result (R$ million)

1H11 1H12 2Q11 2Q12

354

476

161229

111%108%

112% 109%

4.4%5.3%

2.0%2.5%

12

1Q11 1Q12

193246

Net Profit

118%107%

Payout

2.5%2.9%

Yield Preferred Shares

Distribution of R$ 251 million in dividends related

to 2Q12:

- R$0.63 per common share

- R$0.69 per preferred share

- Ex-dividends: August 06, 2012

- Payment date: August 27, 2012

Net income 43% higher in 2Q12, reflecting the good performance of revenues

Net Income (R$ million)

13

+56%

-5%

Cash flow generation reflects higher revenues from the bilateral contract

Final Cash Balance (R$ million)Operating Cash Flow (R$ million)

2Q11 2Q12

297

464

2Q11 2Q12

286 271

14.3% 10.1%

14

Net Debt (R$ billion) Average Cost and Average Term (Principal)

Low leverage with net debt/Ebitda ratio of 0.4

2010 2011

114% 115%

3.12.6

1 – Percentage of CDI

Average Term - Years

13.98% 12.06%

Effective rate

1Q10 1Q11

124.8% 113.9%

CDI

1.8

3.1

Average Term

1

1 – Percentage of CDI (Interbank Deposit Certificate)

0.5x

0.4x

Net Debt/EBITDA

2Q11 2Q12

0,64 0,65

Net Debt

2Q11 2Q12

113% 120%

CDI

2.76

1.76

Prazo Médio - Anos

0.5x

0.4x

Net Debt/EBITDA

2Q11 2Q12

0.64 0.65

Net DebtEffective rate

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.

2Q12 Results