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Investor Presentaiton

POWER PLANTS - Brazilian energy market – overview National energy by generation type Total installed capacity: 127 GW (July 2012) 98% of total consumption is in the interconnected area ISOLATED AREA Acre Macapa INTERCONNECTED 6,4% 1,3% 10,5% Belém AREA 5,8% 1,5% Gas S.Luis Fortaleza MANAUS Natal Tocantins Teresina Parnaíba J. Pessoa RECIFE Maceió 7,6% ■ Coal 1,6% Biomass Nuclear Rondônia Cuiabá BRASILIA Goiânia S.Francisco Aracajú ■ Hydro Salvador Oil Paranaíba C.Grande GRANDE Paraná Tietê Belo 65,3% Imported Wind Horizonte Vitória Paraiba do Sut Paranapanema Rio de Janeiro All hydro power plants are centralized and operated in an integrated way, to take advantage of the hydrological diversity of reservoirs. ITAIP Iguaçu Argentina Uruguai SÃO PAULO Curitiba Florianópolis Jacui Porto Alegre Generation: Transmission: Distribution: 85% State-owned 15% Private sector 26 companies (15 private) 64 companies (80% private) • The majority of potential locations suitable for large hydropower plants are located in the Amazon region, far from the consumer centers. Environmental issues could avoid the full development of the existing hydropower potential in that region. Thermal power generation is the only source capable to provide reliability to the interconnected grid. Note: Most of Wärtsilä power plants located in the interconnected area have been used as stand-by capacity for the renewable plants (hydro/wind/biomass)
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