AES Eletropaulo Reduces Its Manageable PMSO Expenses by 4.2% in 2Q13

USA - English

• Brazil - Português

SAO PAULO, Aug. 7, 2013 /PRNewswire/ -- Eletropaulo Metropolitana Eletricidade de Sao Paulo S/A, [BM&FBovespa: ELPL3, ELPL4; ADRs negotiated at US OTC Market] announced 2Q13 results.

The total market in AES Eletropaulo's concession area expanded by 0.4% year-over-year and came to 11,602 GWh in 2Q13. The increase of 1.5% in the consumption of the total commercial class and of 0.7% in the consumption of the total residential class contributed to this result, despite the lower number of billing days and the slowdown in brazilian economic growth, which led to a 0.8% drop in the industrial class consumption.

The operational highlight in the period was the total losses indicator, which stood at 9.9% at the end of the quarter and reached the Company's single-digit target, as a result of the anti-loss initiatives. SAIDI and SAIFI indicators of the last 12 months also dropped significantly by 11.8% and 6.5%, respectively.

The financial highlight was the year-over-year drop of 4.2% in manageable expenses. In 1H13, there was a 3.8% decrease whereas inflation measured by IGP-M increased by 6.3%. This is the result of AES Eletropaulo's cost reduction program, intended to slash manageable PMSO expenses  by R$ 100 million in relation to 2012 PMSO adjusted for inflation, thus affirming Management's commitment to the Company's cost management effort. When adjusted for inflation, the Company achieved a reduction of R$ 29.9 million in 2Q13 and R$ 58.8 million in 1H13.

In order to attend the market expansion, regularize illegal connections and forge ahead with the projects for preventive and corrective maintenance and upgrading of subtransmission and underground power lines, the Company invested R$194.9 million in 2Q13, up 14.7% from 2Q12, mainly applied on expanding the system and making it more reliable, as well as improving client services.

Conference Call / Webcast

PRESENTATION:
Britaldo Soares – Chief Executive Officer
Mr. Gustavo Duarte Pimenta – CFO and Investor Relations Officer

DATE: Thursday, August 08^th, 2013
TIME: 10:00 (BR) / 9:00 a.m. (EDT)

CONNECTION:

• Brazil: (+55 11) 4688-6361
• USA: (1-855) 281-6021     
• Other countries: (1 786) 924-6977

SIMULTANEOUS INTERPRETATION INTO ENGLISH.

CONFERENCE CODE: AES Eletropaulo
REPLAY: (+55 11) 4688-6312
CODE: 1062585#
AVAILABLE FROM: 08.08.13 to 08.14.13

The presentation slides will be available on the website ri.aeseletropaulo.com.br  and the conference call will be also broadcasted live.

SOURCE AES Eletropaulo