3Q10 Results

November, 2010

FinancialFinancial

OperationalOperational

Dividend distribution in the amount of R$ 216 million related to 3Q10 results, representing R$ 0,54 for common shares and R$ 0,60 preferred shares

DividendsDividends

Energy Generation 12% higher than physical guarantee in 3Q10

Net revenues totaled R$ 471 million, an increase of 6% over the same period of the last year

Ebitda reached R$ 357 million, with margin of 76%, in 3Q10 Net income of R$ 216 million in 3Q10 Annual adjustment of bilateral contract with AES Eletropaulo by

IGP-M at 5.17% in July

3

• MDL Project: Reforestation methodology of APPs1 in the border of the power plants’ reservoirs

• APPs area: 12 thousand hectares

• Purpose: Promote the generation and sale of carbon credits

• Carbon credits generated may be purchased by countries that signed the Kyoto Protocol and have targets to reduce greenhouse gases emission

Contract signed with the World Bank for the sale of carbon credits

1 – Permanent Preservation Area

Brazilian government issued the approval letter for MDL project

MDL Project was approved at the Company’s Board of Directors meeting

Contract signed with the World Bank:Volume expected: 400k tonsReforested area: 2001 – 2010: 2,672 hectares Contract value: USD 1.75 million (estimated)

Aug, 2010 Sep, 2010 Oct, 2010

4

La Niña effect has contributed to low water inflow and higher thermal dispatch on 3Q10

Reservoirs Level - (%)

Water inflow1 - % LT Average

1 – Energy that can be generated from the natural water flow of a river to a hydropower plant's reservoir.

Hydroelectric and Thermal generation - SIN

Hydroelectric Thermal

6%

94%

14%

86%

3Q10

3Q09

Southeast South Northeast North

3Q09

3Q08

3Q10

3Q07

Southeast South Northeast North

100%

100%

79%

79%

83%

83%

66%

66%

107%

107%

74%

74%

69%

69%

74%

74%

151%

151%

182%

182%

96%

96% 11

1%11

1%

89%

89%

88%

88%

61%

61%

64%

64%

71%

71%

68%

68%

63%

63%

64%

64%

66%

66%

57%

57% 63

%63

%

64%

64%73

%73

% 82%

82%

68%

68% 77

%77

%

58%

58%

78%

78%

61%

61%

56%

56%

5

Reservoirs level of AES Tietê’s power plants – MW Avg

3Q07 3Q08 3Q09 3Q10

52%

45%

78%

43%

Average level of AES Tietê’s reservoirs closed 3Q10 slightly bellow 3Q07 e 3Q08

6

Maintaining high operational availability with generated energy 29% higher than physical guarantee in 9M10

1 – Generated energy divided by the amount of period hours

Energy Generation – MW Avg.1

Generation – MW Avg. generation / Physical Guarantee

130%

1,425

1,545 1,512

112%121% 119%

1,665

2006 2007 2008 2009

133%

112%

1,979

1,6401,495

143%

1Q10 2Q10 3Q10

7

Billed Energy – GWh

Billed energy was 5% higher in 9M10 due to a higher amount anticipated for 1Q10

9M10

5 %

3Q10

3,602

- 5 %

5,653

11,451

184

8,578

1,146

949

1,154

1,135

22

3Q09

3,782

238

535

2, 987 2,925

187408 83

9M09

28

10,890

8,521

1,640

701MRE1

AES Eletropaulo

Spot Market

Other Bilateral Contracts

1 – Energy Reallocation Mechanism

8

Investments – R$ million

Investments of R$ 24 million in maintenance and modernization of power plants and R$ 5 million in Jaguari Mirim SHPPs1 in 3Q10

Investments 3Q10

82%

16%2%

1%

Equip. and Maint.

ITEnvironment

New SHPPs

New SHPPs1

Investments

1 – Small Hydro Power Plants

2007 2008

8

51 59

3943

20

2009

13

57

44

3Q09

14

29

2010 (e)

12

93

81

3Q10

59

24

5

9

Higher price of bilateral contract with AES Eletropaulo and higher energy sold through other bilateral contracts contributed to the 6% increase in net revenues

Net revenues – R$ million

9M109M09

4%

3Q103Q09

4716%

1,2651,224

726

1,333

47

1,278 42

433 445

445102

1016

AES Eletropaulo Other Bilateral Contracts CCEE / MRE

10

9M109M09

159174

249293

18%

3Q103Q09

71

41

83

11437%107 2

12

51

32

89

1

Costs and operational expenses1 – R$ million

Energy Purchase, Transmission and Connection Charges, and Water Resources

Other Costs and Expenses2

Operational Provisions

1 – Do not include depreciation and amortization 2 - Personnel, Material, Third Party Services and Other Costs and Expenses

Costs were impacted by an increase on energy purchased for resale and material and third party services

11

1% reduction on Ebitda, with 76% margin

9M109M09

1,0401,028

81% 78%

1%

3Q103Q09

357362

81%76%

- 1%

Ebitda – R$ million

Ebitda Margin

12

Unusual behavior of IGP-M decreased financial charges of debt with Eletrobrás in 3Q09

(10)

9M09 9M10

(41)

(14)

3Q09 3Q10

195%(14)

44%

Financial Result – R$ million

13

Pay-out

9M109M09

216221

100% 100%

- 1%

3Q103Q09

628636

- 2%

100% 100%

Net Income – R$ million

Company recorded a net income of R$ 216 million in 3Q10 and will distribute 100% of the result

14

Net Debt 3Q10

Low debt with Net Debt/ Ebitda ratio stable at 0.3x

Debentures

3Q102008 2009

0.40.4

0.3x0.3x

3Q09

0.40.4

0.3x0.3x

Net Debt/ EbitdaNet Debt

Amount: R$ 945 million Period of 5 years

CDI + 1.20% p.a.

Biannual basis interest payment Annual amortization and equal installments in the

3rd, 4th and 5th years

15

Positive impact due to Eletrobrás debt replacement by 1st debenture issuance, whose amortization will begin only in 2013

3Q102Q103Q09

641.4 573.8 454.5 316.4 345.8 321.9 (14.8) (16.1) (29.5)(15.0) (3.5) (7.1)(57.5) (34.3) (0.0)(18.9) (32.5) (20.2)210.1 259.4 265.1

(199.0) (378.6) (172.2)

652.4 454.5 547.4

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

Consolidated Managerial Cash Flow – R$ million

3Q10 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 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..