InstitutionalMay, 2010

2

85.4%

14.6%

97.0%

3.0%

7 million clients6 thousand AES People

AES Brasil Group

Discos

Gencos

Market Share¹2009 results:

R$ 3.2 billion (Ebitda)R$ 1.9 billion (net income)

Investments 1998-2009:

R$ 5.8 billion after privatization

DiscoTrading Co. Telecom

Genco

1 - Source: Abradee (Discos) and Aneel (Gencos) - Data as of December 2008

3

AES EletropauloTelecom

AESTietê

AESEletropaulo

Shareholding structure

C 99.99 %T 99.99 %

C 99.99%T 99.99%

AESCom Rio

C = Common SharesP = Preferred Shares

T = Total

C 76.45%P 7.38%T 34.87%

Cia. Brasiliana de Energia

AES Corp BNDES

C 50.00% - 1 shareP 100%T 53.85%

C 50.00% + 1 shareP 0.00%T 46.15%

C 71.35%P 32.34%T 52.55%

C 98.25%T 98.25%

AESSul

T 99.70%

AESUruguaiana

AESInfoenergy

C 99.00%T 99.00%

4

24.2% 28.3% 39.5%

16.1% 19.2% 56.2%

8.0%

8.5%

Others¹Free Float

Shareholding composition

1 – includes Federal Government and Eletrobrás shares in AES Eletropaulo and AES Tietê, respectively

6

AES Eletropaulo overview

• Largest electricity distribution company in Latin America

• Serving 24 municipalities in the São Paulo Metropolitan area

• Concession area with the highest GDP in Brazil:

– 17.3% of the Brazilian GDP and 50.9% of São Paulo’s state GDP (2007)

• 46 thousand kilometers of lines

• 4,526 km2 of concession area

• 1.1 million electricity poles

• 4,491 employees

• 5.9 million of consumption units

• Total distributed volume of 41 TWh in 2009

• Concession contract valid until 2028

Concession Area

São Paulo Metropolitan Area

Regional West

Regional East

Regional South Regional ABC

Regional North

7

Ranking for energy distributors

Net Revenue

2007 2008

Ebitda

1st

2nd

1st

1st

Source: Abradee (Brazilian Association of Energy Distributors); research among 48 energy distributors in Brazil

Net Revenue - R$ million

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

AES

ELET

RO

PAU

LO

CEM

IG

LIG

HT

CPF

L PA

ULI

STA

CO

PEL

CO

ELB

A

CEL

ESC

ELEK

TRO

AMPL

A

CEL

PE

BAN

DEI

RAN

TE

CPF

LPI

RAT

ININ

GA

CO

ELC

E

CEL

G

Ebitda - R$ million

200

400

600

800

1.000

1.200

1.400

1.600

1.800

AES

ELET

RO

PAU

LO

CEM

IG

LIG

HT

CO

ELB

A

CPF

L PA

ULI

STA

CO

PEL

ELEK

TRO

AMPL

A

CEL

PE

CO

ELC

E

AMAZ

ON

AS

CPF

LPI

RAT

ININ

GA

CEM

AR

RG

E

8

1,8011,573

Consumption evolution

Total Market (GWh1) 1Q10 Consumption Share (GWh1)

Free ClientsCaptive market

2007 2008

410

39,93241,243

32,577

7,355

33,860

7,383

34,436

6,832

41,269

2009

8,118

9,691

8,544

10,344

1Q09 1Q10

Free Clients

Commercial

Residential

Others

Industrial

35%14%

18%

27%

6%CAGR: 1%

1 – Net of own consumption

9

Residential (GWh¹) – CAGR 2007-09: 4% Commercial (GWh¹) – CAGR 2007-09: 2%

Industrial (GWh¹) – CAGR 2007-09: -2% Captive Market¹ (GWh¹) – CAGR 2007-09: 2%

Main consumption classes

10,301

2,657

6,559 33,86034,436

6,032

15,015

13,50014,427

6,475 32,577

10,0723,646

3,494 2,804

1,3271,449

8,1188,544

10,752

2007 2008 1Q102009 1Q09 2007 2008 1Q102009 1Q09

2007 2008 1Q102009 1Q09 2007 2008 1Q102009 1Q09

1 – Net of own consumption

10

Consumption

Free Clients

1,573 1,801

Captive Market

8,118 8,544

Residential Industrial Commercial Public Sector and

Others

Total Market

Consumption Evolution (GWh¹)

6412,657

1,3273,494

9,691

645

3,646

1,4492,804

10,344

1Q101Q09

+4.4 % +5.5 % +0.7 % +5.2% +6.7%

1 – Net of own consumption

+9.2 % +14.4%

11

Investments amounted up toR$ 98 million in 1Q10

Investments Breakdown (R$ million) Investments 1Q10

Paid by customers

2007 2008

364410

69

433457

Own resources

47

92

1019

1Q09

88

9810

1Q102009

516

478

37

2010(e)

637

54691

Customer service / System expansion

Paid by the clientsLosses recovery

Maintenance

IT Other

15%

10%

24%

47%

2%2%

12

SAIFI - System Average Interruption Frequency Index SAIDI - System Average Interruption Duration Index

SAIDI & SAIFI

Source: ABRADEE, ANEEL e AES Eletropaulo

ABRADEE ranking position between 28 distributors with over 500 thousand consumers

9.208.90

2007 2008

SAIDI (hours) SAIDI Aneel Target

13.50

1Q10

11.34 10.92

2009

3o

1Q09

► 2010 SAIDI ANEEL Target: 9.32 horas

5o

11.86

10.09

10.20

2007 2009 1T09

SAIFI (times) SAIFI Aneel Target

7.878.49 8.41

1o

1Q10

► 2010 SAIFI ANEEL Target: 7.39 times

1o

5.64 5.20 5.46

2008

6.17 6.74

13

Losses (%)Collection Rate (% over gross revenue)

Operational indexes

• Disconnections and Reconnection – Monthly Average (1Q09 X 1Q10)

– Disconnections: increase from 75 thousand to 92 thousand

– Reconnection: increase from 50 thousand to 77 thousand

• Past due bill credit report (1Q10 monthly average): 131 thousand

• Fraud and Illegal Connections (1Q10)

– 56 thousand inspections e 8 thousand frauds detected

– 16 thousand illegal connections regularized

1.6 p.p. 0.3 p.p.

98.5

20092008 1Q09

102.5

1Q10

99.8101.199.5

2007

5,3

6

20082007 1Q10

5.1

6.5

11.6

5.0

6.5

11.5

Commercial Losses Technical Losses

2009

5.3

6,5

11.8

6.5

5.0

6.5

11.5

1Q09

6,56.5

5.3

11.8

14

Net revenue of R$ 2.1 billion in 1Q10

Net Revenue (R$ million)

2007 2008

7,5297,193

1Q09

1,850

8,050

1Q10

2,131

2009

CAGR: 4%

15

Operating Costs and expenses

Operating Costs and Expenses¹ (R$ million)

‘

PMS² and Other ExpensesEnergy Supply and Transmission Charges

1Q09 1Q10

288

1,197

1,485

341

1,406

1,747

1 - Depreciation not included 2 - Personnel, Material and Services

2007 2008 2009

1,193

4,700

5,893

1,312

5,110

6,4225,537

4,097

1,440

CAGR: 5%

16

Ebitda of R$ 341 million in 1Q10

Ebitda (R$ million)

2007 2008 1Q09

288

1,6961,566

2009

1,573

1Q10

341

CAGR: 0.1%

17

Net Income (R$ million)

34.9%

100.3% 101.5%

3.2%

14.4%20.3%

130

715

1,043

Dividends Pay-out Yield PNB

2007 20082006 2009

Net income of R$ 1,1 billion in 2009

Dividend payout (R$ million)

2007 2008

1,027

713

2009

1,063 1,080

20.4%

101.5%

• 25% of minimum pay-out according to bylaw • Since 2006, practice of 95% payout on semi-annually basis

1Q10

157

1Q09

147

CAGR: 14%

18

R$ 993 million paid as dividends in 2009

Managerial Cash Flow (R$ million)

Initial CashOperational Cash GenerationInvestmentsNet Financial ExpensesNet AmortizationsPension FundIncome Tax

Dividends

Final Cash

- -

Free Cash Flow

2008 2009 1Q101Q09

1.536 1.536 1.2491893 1970 268 572

(374) (378) (104) (135)

(161) (118) (80) (81)

(94) (136) (184) (14)

(192) (166) (58) (48)

(295) (189) (119) (73)777 706 (278) 221

(576) (993)

1.536 1.249 1.258 1.470

1.334

2007

2488

(407)

(501)

(182)

(198)

(418)783

(615)

1.334

1.166

19

524 250 276 298528

223

5665

33366 70

74

7984 89

224554

Local Currency (ex Pension Fund)

Debt profile

1 – Includes 12th and 13th bonds 2 - Brazil’s Interbank Interest Rate

Amortization Schedule¹ (R$ million)

• March, 2010:– Average debt cost in 1Q10 was 121% of CDI² per year or 14.5% per year– Average debt maturity of 7 years

Net Debt

2007

3.0

2008

2.5

1.8x1.5x

1.8x

2.9

1.6x

1Q10

2.7

1Q09

1.7x

2009

3.2

Net Debt (R$ billion)

Net Debt / EBITDA Adjusted with Pension Fund

Pension Fund

2010 2011 2012 2013 2014 2015 From 2018 to 2028

20172016

580

316 341 368602

302

1,919

313417

1,365

20

13,0%

-0,4%2,6%

1Q10

90

100

110

120

Dec-09 Jan-10 Feb-10 Mar-10

AES Eletropaulo PFB

Capital market

AES Eletropaulo X Ibovespa X IEE Average Daily Volume (R$ thousand)

2007 2008

26,066 25,677

2009

21,960

Ibovespa

IEE – Electric Power Index

19,4%

44,7%

72,0%12 month

6080

100120

140160180

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

1Q10

24,538

22

AES Tietê overview

• 30 year concession, valid until 2029, renewable for

another 30 years

• 10 hydroelectric plants in the state of São Paulo at Tietê,

Pardo, Grande, and Mogi Guaçu rivers

• 6 small hydro power plants in the state of Minas Gerais

• Installed capacity of 2,657 MW, with physical guarantee1

of 1,280 MW

• 100% of physical guarantee contracted with AES

Eletropaulo until the end of 2015

• 315 employees

Concession Area

Água Vermelha (1,396 MW)

Nova Avanhandava (347 MW)

Ibitinga (132 MW)

Barra Bonita (141 MW)

Promissão (264 MW)

Bariri (143 MW)

Mogi-Guaçu (7 MW)

Euclides da Cunha (109 MW)

Caconde (80 MW)

Limoeiro (32 MW)

AES Tietê’s Power Plants:

1 - Amount of energy allowed to be long term contracted

Atlantic Ocean

23

Energy Generation (MW average1) Billed Energy (GWh²)

Operational Performance

Generation – MW Avg. Generation / Physical Guarantee

130%

1,543 1,510

121%118%

1,662

2007 2008 2009 1Q09 1Q10

1,979

1,753

137%

155%

1- Generated energy divided by the amount of period hours 2 - Including energy purchased 3 – Considers the difference between the sale and purchase volume

MRE2

AES Eletropaulo Spot Market2

Other Bilateral Contracts

13,421

1,740

11,108

13,148330

1,680

11,138

2007 2008

573

14,523

2,357

955

11,108

2009

103

1Q09

3,705

563335

2,787

19

1Q10

4,164

511

589

3,015

49

24

Investments (R$ million)

Investments

New SHPPs

Investments

2007 2008

8

5159

3943

20

2009

13

57

44

2010 (e)

58

67

1Q10 Investments

75%

2%6%

18%

Equip. and Maint.

Environment IT

New SHPPs

1

81

7

9 8

1Q09 1Q10

9

25

ConcludedConcluded

1 - Small Hydro Power Plants

AES Tietê has been seeking opportunities to increase its installed capacity to comply with the 15% increase requirement in the State of São Paulo

In ProgressIn Progress

Under EvaluationUnder Evaluation

• 6MW of co-generation by biomass contracted for 15 years (initiating in 2010)

• 7 MW of hydropower generation through SHPPs1 in Jaguari Mirim river– SHPP São José (4 MW) is expected to begin the operation in 2H10– SHPP São Joaquim (3 MW) is expected to begin the operation in 2H10

Projects - expansion requirement

• 550 MW of thermo generation through natural gas– Location has been defined in Nov/2009– Initiation of the environmental licensing process, with entry on CETESB in March/2010

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

26

Net Revenue (R$ million)

Net revenue of R$ 460 million in 1Q10

2007 2008

1,6051,449

2009

1,670

1Q10 Average Prices (R$ / MWh)

AES Eletropaulo 152.00MRE 8.51Spot 18.20

1Q09

417

1Q10

460

CAGR: 20%

27

Costs and Expenses (R$ million)

Costs and expenses

1Q101Q09

48 48

3027

925

1698

16

Energy Purchase, Transmission and Connection Charges, and Water Resources

Other Costs and Expenses1

Depreciation and Amortization

Operational Provisions

20092008

416475

109 141

239 214

65

55653

1 - Personnel, Material, Third Party Services and Other Costs and Expenses

2007

415

97

281

65

28

CAGR: 5%

28

Ebitda (R$ million)

Ebitda of R$ 378 million in 1Q10

1,254

1,099

2007 2008

1,260

2009 1Q09 1Q10

378342

CAGR: 5%

29

Net Income (R$ million) Dividend Payout1 (R$ million)

1 - Gross amount

100 % 100 %

10% 12%

609692

Dividends Pay-out Yield PN

2007 2008

• 25% of minimum pay-out according to bylaw • Since 2006, practice of 100% payout on quarterly basis

Sustainable profitability and dividend payment

2009

780

11%

100 %

609692

2007 2008 2009

780

215

1Q09

239

1Q10 1Q09 1Q10

215 239

100 % 100 %

CAGR: 9%

30

Consolidated Managerial Cash Flow (R$ million)

R$ 829 million paid as dividends in 2009

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

2008 2009 1Q10

615368(8)

(12)(60)

(328)(41)

0574

1Q09

840297(11)(6)

(53)(253)(25)

0814

6381.222

(55)(49)

(194)(66)858

(656)840

8401.243

(58)(48)

(224)(309)

604(829)

615

2007

6881.120

(46)(72)

(197)(247)

558(608)

638

31

Debt

Net Debt / EbitdaNet Debt

1Q102008 2009

0.40.4

0.3x0.3x

1Q09

0.40.3

0.3x0.3x• R$ 900 million

• 5 years term

• CDI + 1.20% a.a.

• Payment on semiannual basis

• Fixed amortization on the 3rd, 4th, and 5th years

• Objective: pre-payment of Eletrobras debt

Net Debt (R$ billion) Overlook on the 1st Debenture Issue

2007

0.7

0.6x

32

Capital market

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

Last 12 Months

+ 72%

+ 45%

+ 10%

90110130150170190

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

Preferred Common

2008 2009

2,1012,692

10,1878,160

5,468

8,086

3,952

13,708

9,756

1Q10

Dec-09 Jan-10 Feb -10 Mar-10

1Q10

110

100

90

+ 3%

0%

- 3%AES Tietê PF

Ibovespa

IEE – Eletric Power Index

Social Responsibility andEnvironmental Actions

34

Social responsibility

• Launched in December, 2008;• Objective: to get the co-workers committed to the transformation of low income communities and development of

non-governmental institutions;• 1,137 volunteers

Volunteering Program

Acting to Transform

Enterprising in the Community

Distributing Energy of

Good

Specific social mobilization or emergency campaign.

Winter clothes, Christmas campaign, among others.

Opportunities for volunteering in social organizations, which are

partners of AES Brazil

Co-workers can enroll in volunteer activities available at AES Brazil volunteering portal

since September/09www.energiadobem.com.br

Acknowledgement and support of projects for the

development of social organizations.

Volunteers may submit projects to help other

organizations to develop. Launch scheduled for 1half of

2010.

35

• 302 benefited children between 1 and 6 years old

• Own investments amounting R$ 1.5 million in 2009

• Units: Santo Amaro and Guarapiranga

• Over 5.2 thousand children, teenagers,

and adults have been benefited

• Own and incentive investments:

approximately R$ 14 million in 2009

• Activities of acting, dancing, circus arts, visual arts, music, gymnastics, courses of income generation, and education of safe use of electrical power and the right use of natural resources

• 6 operating units

“Casa da Cultura e Cidadania” Project

“Centros Educacionais Infantis Luz e Lápis” - Project

Social responsibility

Attachments

37

Shareholders Agreement

Main Highlights

Shareholders can dispose its share at any time, considering the following terms:

• Right of 1st Refusal

- Any party with an intention to dispose its shares, should first provide the other party the right to buy that participation at the same price offered by a third party

• Tag Along Rights

- In the case of change in Brasiliana’s control, tag along rights are triggered for the following companies (only if AES is no longer controlling shareholder):

- AES Eletropaulo: Tag along of 100% in its common and preferred B shares and 80% in its preferred A shares- AES Tietê: Tag along of 80% in its common shares- AES Elpa: Tag along of 80% in its common shares

• Drag Along Right for Brasiliana

- Once the offering party exercises the Drag Along clause, offered party is obligated to dispose of all its shares at the time, if the Right of 1st Refusal is not exercised by offered party

On December 22, 2003 AES and BNDES signed a Shareholders’ Agreement to regulate their relationship asshareholders of Brasiliana and its controlled companies. The Agreement is available at www.aeseletropaulo.com.br/ri

38

Energy sector agents in Brazil

Ministry of Mines and Energy (MME)

National Council of Energy Policy (CNPE)

Electric Energy Commercialization Chamber (CCEE)Pricing and clearing of

energy transactions

Electricity Sector Surveillance

Committee (CMSE)

Brazilian Electricity Regulatory Agency

(ANEEL)

Energy Research Enterprise (EPE)

Generation companies

Transmission companies

Distribution companies

Trading companies

System Operator (ONS)

Generator resources scheduling and dispatch

(Monitors energy supply) (Ruling, Inspection & Auditing, Monitoring, and Mediation)

(Generation & Transmission Planning)

(Set Guidelines and Policies)

(Formulates Policies)

39

Energy sector in Brazil(Contracting Environment)

Trading Companies

Free Clients

Spot Market

• Main auctions (reverse auctions):

– New Energy (A-5): Delivery in 5 years, 15-30

years regulated PPA

– New Energy (A-3): Delivery in 3 years, 15-30

years regulated PPA

– Existing Energy (A-1): Delivery in 1 year, 5-15

years PPA

Regulated Market Free Market

Distribution Companies

PPAs1

Trading Companies

Free Clients

Distribution Companies

Auctions

1 – Power Purchase Agreement

40

Tariff Reset and Readjustment

• Tariff Reset is applied each 3 to 5 years − AES Eletropaulo: each 4 years (next 2011)− AES Sul: each 5 years (next 2011)− Parcel A: costs pass trough the tariff− Parcel B: costs are set by ANEEL

• Tariff Readjustment: annually − Parcel A costs pass trough the tariff− Parcel B cost are adjusted by IGPM +/- X(1) Factor

Energy Purchase

TransmissionSector Charges

Investment Remuneration

Depreciation

Reference Company(PMSO)

RemunerationAssetBase

X Depreciation

X WACC

Regulatory Ebitda

Parcel A - Non-Manageable Costs

Parcel B - Manageable Costs

• Remuneration Asset Base:– Applicable investments used to

calculate the Investment Remuneration (applying WACC) and Depreciation

• Reference Company:– Efficient cost structure, determined by

ANEEL (National Electricity Agency)

• Parcel A Costs− Non-manageable costs that totally

pass- through to the tariff− Losses reduction improve the pass-

through effectiveness

(1) X Factor: index that capture productivity gains

Discos regulatory methodology(Tariff Reset and Readjustment)

41

Expansion requirement of 15%

Increase installed capacity in Sao Paulo State by 15% (400 MW), either in greenfield projects or through long term

purchase agreement with new plants

The obligation was supposed to be accomplished by December 2007, however AES Tietê was not able to comply with this

requirement due to the following restrictions:

– Insufficient remaining hydro resources within the State of São Paulo

– Environmental restrictions

– Insufficiency of gas supply / timing issue

– More restricted regulation on energy sale established by the New Model of Electric Sector (Law # 10,848/2004)

which eliminated the self dealing

• In August 2008, Aneel informed that the issue is not linked to the concession

• Popular law action against Federal Government, Aneel, AES Tietê, and Duke

– Status: Defense filed on first instance in October 2008 by AES Tietê. In December, 2008, the author replied AES

Tietê defense and, since this, both parties are waiting judge movement about the necessity of proves production

• On July 27, 2009, AES Tietê was notified by the State Government Attorney’s Office to present arguments on compliance

with the expansion obligation

– The Company filed a response on July, 29th, which exhausts the procedure for notification. Possible deployment

depends on new manifestation of the Prosecution

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.

Contacts:ri.eletropaulo@aes.com

ri.aestiete@aes.com

+ 55 11 2195 7048