3Q13 Results

November, 2013

3Q13 Highlights

Operational

� 14% reduction in non-technical losses (3.6% vs. 4.2% in 3Q12)

� ~5% reduction in SAIDI and SAIFI to 8.21 hours and 4.54 times, respectively

� Investments totaled R$ 193 milion vs. R$ 225 milhões no 3Q12

� 2.7% growth in total consumption compared to 3Q12, totaling 11,626 GWh

� Grooss Revenue totaled R$ 3,120 milhões, 16.9% lower vs. 3Q12 due to the program to reduce

electricity costs imposed by Law n.º 12,783/2013, compensate by the market growth

2

Financial

electricity costs imposed by Law n.º 12,783/2013, compensate by the market growth

� Costs reduction program: manageable PMSO decreased by R$ 55 million (17%) compared to

3Q12, adjusted by the IGP-M index (R$ 88 million YTD)

- Guidance of cost reduction revised to R$ 140 million in 2013

� EBITDA of R$ 142 million and net income of R$ 27 million.

- Adjusted Ebitda of R$ 374 million vs R$ 232 in 3Q12

� In July 2013, AES Eletropaulo received the "Transparency Award 2013" by adopting best

accounting practices in preparing the financial statementsAward

10.36 8.35 8.64 8.21

8.68

8.67 8.67

8.49

-5.0%-14.7%

Consistent improvement in quality indicators

SAIDI (hours)

-2.3%

SAIDI (hours)

� SAIDI and SAIFI reduced by ~ 5% for 8.21 hours and 4.54 times, respectively

� 40% reduction in penalties costs for transgression of indicators (frequency and duration of

interruptions)

8.35 8.64 8.21 6.08 5.93

2011 2012 3Q12 3Q13 Jan-Sep 12 Jan-Sep 13

5.45 4.65 4.79 4.54 3.38

3.27

6.93 6.87 6.87 6.64

2011 2012 3Q12 3Q13 Jan-Sep 12 Jan-Sep 13

-3.2%

3

LTM

-5.2%

SAIFI (times)

-19.4%

LTM

LTM LTM

SAIFI (times)

SAIFI Aneel Reference

SAIDI Aneel Reference

Total Losses (last 12 months)

-4.6% -6.8%

� 14% reduction in non-technical losses and total losses within the regulatory parameter

Efficiency in loss regularization and reduction

12.611.5

41 – Values estimated by the Company to make them comparable with the reference for non-technical losses of the low voltage market determined by the Aneel2 – Aneel Reference: normalized values for the regular calendar

12.611.5

10.5 10.510.1

4.4 4.0 4.1 4.2 3.6

6.5 6.5 6.1 6.2 6.1

10.9 10.5 10.4 10.4 9.7

2010 2011 2012 3Q12 3Q13

Aneel Reference²

Technical Losses¹

Non Technical Losses

22

35

80

739

831

701

533

2T13Investments background (R$ million)

� //////////////////

Investments Breakdown (R$ million)

� ///// 3Q13

R$ 193 million

-7.9%

Investments targeted operational reliability, expansion and customer service

36

717 796

621 553

458

213 152

80

26

71

11 39

579 533

225 193

2011 2012 2013(e) 9H12 9H13 3Q12 3Q13

Own Resources Funded by the clients

5

-14.0%

1 – Operational reliability Capex corresponds to the investments made for grid modernization and improvement in quality of service

51

44

39

8

710

Serviços ao Cliente Expansão do Sistema

Confiabilidade Operacional¹ Financiado pelo cliente

TI Recuperação de Perdas

Outros

4,331

1,468 2,797

731

9,326

1,998

11,323

4,433

1,396 2,807

705

9,342

2,284

11,626

Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market

3Q12

3Q13

Consumption evolution (GWh)1

2.4% -4.9% 0.4% -3.5%

0.2%

14.3%

2.7%

Recovery in residential and commercial

4,331 2,736 3,201

1,055

11,323

4,433 2,726 3,336

1,130

11,626

Residential Industrial Commercial Public Sectorand Others

Total Market

3Q12

3Q13

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

6

Consumption evolution with the free market allocated in the respective consumer classes (GWh)

2.4% -0.3% 4.2% 7.1%

2.7%

1 – Captive and free commercial clients. Own consumption not considered

12,775

4,338

8,816

2,184 5,918

13,063

4,169

8,617

2,151

6,630

Residential Industrial Commercial Public Sector Captive Market Free Clientes Total Market

9M12

9M13

27,999 34,032 34,629

Consumption evolution (GWh)1

2.2% -3.9% -2.3%-1.5%

-0.4%

12.0%

1.8%

28,114

Performance in 9M13 supported by the residential and commercial

12,775

8,180 9,898

3,178

13,063

8,066 10,257

3,243

Residential Industrial Commercial Public Sectorand Others

Total Market

9M12

9M13

34,629

Residential Industrial Commercial Public Sector and Others

Captive Market Free Clientes Total Market

-1.4%

7

Consumption evolution with the free market allocated in the respective consumer classes (GWh)

2.2% 3.6% 2.0%

1.8%

1 – Captive and free commercial clients. Own consumption not considered

34,032

1,193

1,157

6,128

5,303

2,748

1,870

352

340

10,131

8,537

2T13Gross revenues (R$ million) Operating Costs and Expenses¹ (R$ million)

-16.9%

-13.5%

-11.2%

-17.5%

Revenue reflects the cost reduction program costs and market increase

4,936 4,145

1,749 1,513

378 375

2,127 1,888

9M12 9M13 3Q12 3Q13

7,031 6,327

2,293 2,034

1,870

1,386 878

166 195

3,845 3,106

9M12 9M13 3Q12 3Q13

Net revenue ex-construction revenue

Deduction to Gross Revenue

Construction revenues

8

-16.9%

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

Energy Supply and Transmission Charges

PMS² and Others Expenses

� R$ 89 million reduction in 9M13 vs. the same period in 2012 adjusted by the IGP-M¹ (89% of target reached)

� R$ 58 million (17%) reduction in manageable PMSO in 3T13

-13.6%

Guidance reviewed to R$ 140 million in 2013

PMSO2 Formation (R$ million)

378325

281

375

61 8 14 24

22 12 10

80

3Q12 FCesp Contingencies, ADA and

Write-Offs

3Q12Manageable

IGP-M Personal Materials and

Third Party Services

Others 9M13Manageable

Contingencies, ADA and

Write-Offs

FCesp 3Q13

9

-17.2%

1 – 3Q12 Manageable PMSO adjusted by inflation (IGP-M index) of 4.4% 2 – PMSO: Personnel, Material, Services and Other expenses

Formação do Ebitda (R$ milhões)

� Increase of 2.7% of the total market and tariff adjustment

� Reduction of R$ 44 million in expenses manageable PMSO

61.2%

Growth in EBITDA reflects market program to reduce costs and tariff

adjustment

101– Construction cost and assets write-offs 2 – PMSO: Personnel, Material, Services and Other exp

88

212

376

14463

61

130

44 10

80

152

3Q12Ebitda

Regulatory assets and liabilities

F.Cesp 3Q12 Adjusted

Ebitda

Market and tariff

Manageble PMSO

Others 3Q13 Adjuested

Ebitda

F.Cesp Regulatory assets and liabilities

3Q13Ebitda

76.6%

2T13Net income (R$ million) 3Q13 highlights

� Increase of 2.7% of the total market

� Regulatory liabilities of R$ 95 million in the

period, mainly referring to the return of the

271

Net income of R$ 27 million in 3Q13

11

period, mainly referring to the return of the

3rd RTP

� Reduction of R$ 34 million in expenses with

PMSO and other income and expenses

� Flat financial result

(R$ 7.5 million in 3Q13 and 3Q12)

x Income (loss) adjusted for assets adjusted by regulatory assets and liabilities

132 25 122

Net Income

(149)

54

0.5 27

9M12 9M13 3Q12 3Q13

Cash generation determined by the best operating result and reimbursement of

power costs by CDE

INITIAL CASH 1,083.1 986.5

Operating Cash Flow 343.8 591,2

Investments (195,5) (172,2)

Net Financial Expenses (33,7) 6,5

3Q133Q12R$ million

12

Net Amortization (217,0) (17,3)

Pension Fund expenses (57,4) (55,4)

Income Tax - (15,1)

Disposal of assets - 12,1

Restricted and / or blocked cash 9,0 (48,5)

Free Cash Flow (150,7) 301,3

Dividends (0,0) (0,0)

FINAL CASH CONSOLIDATED 932.4 1,287.8

Net debt Average cost and average debt maturity

Continuous reduction in the level of indebtedness of the Company

6.6 6.3

2.1x

4.9x

4.4x

3.1x 2.4x

3.5x 3.5x

3.5x

5.5x

3.75x3.5x

� Net debt / Ebitda index adjusted by 2.4 times

131 –Adjusted EBITDA with the expenses related CESP Foundation and regulatory assets and liabilities.

11,13 11,57

3Q12 3Q13

Effective rate

Average Time - years

3.1 3.1 3.1 3.0 2.9 2.7

2.1x 2.1x3.1x 2.4x

1Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Net Debt (R$ billion)

Net Debt/Ebitda Adjusted¹

Covenants limits - Net Debt/Ebitda Adjusted¹

The statements contained in this document with regard to the

3Q13 resultsThe 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 the relation to

its future performance. Such estimates are highly dependent

on the 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.