CENTRAIS ELÉTRICAS BRASILEIRAS S.A. ELETROBRÁS ELETROBRÁS PERFORMANCE DURING THE SECOND QUARTER 2003

Transcription

1 BOVESPA: ELET3, ELET6 LATIBEX: XELTO, XELB ADR: CAIFY, CAIGY CENTRAIS ELÉTRICAS BRASILEIRAS S.A. ELETROBRÁS MARKETLETTER June ELETROBRÁS PERFORMANCE DURING THE SECOND QUARTER Index by Company: Companies Page Eletrobrás 01 Itaipu 17 Furnas 22 Chesf 28 Eletronorte 34 Eletrosul 40 Eletronuclear 46 CGTEE 51 Lightpar 56 Ceron 61 Eletroacre 67 Ceal 73 Cepisa 79 Ceam 84 E letrobrás recorded in the second quarter of a net loss of R$ 1,544 million, corresponding to R$ 2.87 per 1,000 shares. During the same period of year, the company recorded a net income of R$ 350 million, equivalent to R$ 0.65 per 1000 shares. As regarding the result for the semester ended in June, Eletrobrás ended the period with a loss in the amount of R$ 1,772 million, equivalent to R$ 3.30 per 1000 shares, whereas in the first semester of, the company recorded a net income of R$ 649 million, equivalent to R$ 1.21 per 1000 shares. During the second quarter of the Real appreciation in comparision with the US dollar was 14.35%, whereas in the same period of there was a Real devaluation towards the US dollar, of 22.41%. The Real appreciation had a negative impact on the company s result, since Eletrobrás is the owner of credits represented by loans and financing receivable, which are dollar denominated, mainly derived from Itaipu, and thus recorded a high amount of expenses originated from the currency variation. Such appreciation, however, has positively influenced the result on the equity method, on the holding company financials. During the second quarter of currency variation recorded a loss R$ 2,980 million on the holding result. In that period, due to the existant price level, of (0.35%) according to IGP-M, monetary variation also caused a loss to the company s loans and financing portfolio, in local currency terms, of R$ 84 million. As for the same period of, there was a gain of R$ 3,162 million on the currency variation and a gain of R$ 247 million on monetary variation. As for the semester, Eletrobrás recorded a loss in the amount of R$ 3,995 million on the account named Net Currency variation, as compared with a net gain of R$ 3,182 million in. As regarding Net Monetary variation, during the first semester of there was a gain of R$ 275 million, as compared with a gain of R$ 239 million for the same period of.

2 Eletrobrás In consolidated terms, Currency Variation generated a loss in the amount of R$ 2,593 million during the second quarter of, whereas Monetary Variation recorded a loss of R$ 136 million in the same period. In the first semester of, consolidated numbers recorded a loss in Currency Variation in the amount of R$ 3,376 million and in Monetary Variation a loss of R$ 169 million. The result of shareholding partcipation was R$ million, of which R$ 649 million were the result of revenue on the equity method. As for the semester, shareholding participation were R$ 780 million, and equity shareholding was responsible for R$ 730 million. The main indeces from Eletrobrás financing contracts recorded the following variations: 2 nd Quarter 1 st Semester 2 nd Quarter 1 st Semester IGP-M (0.35%) 5.90% 2.95% 3.48% US$ (14.35%) (18.72%) 22.41% 22.58% Results of participation Subsidiary Companies R$ Million Company Result for the Result for the EBITDA quarter quarter EBITDA Furnas (**) Chesf (134.5) Eletronorte (417.8) Eletrosul (*) ,1 Eletronuclear (219.9) 53.2 CGTEE (*) EBITDA of without of energy from Itaipu (**) Decrease in EBITDA influenced by amount of discontracted energy. Temporary Investments The companies classified as Temporary Investements continue to Record losses. During this quarter a provision in the amount of R$ million was made, for coverage of losses in the realization of advances for shareholding participation granted to: Cepisa (R$ 29.8 million), Ceron (R$ million), Eletroacre (R$ 59.3 million) and Ceam (R$ million), which corresponds to the amount of assets until the limit of coverage of the stockholders equity of those companies. In light of the economic and financial situation of those companies, which continue to record losses in this quarter, a provision has been made, in the amount of R$ 331,7 million, for coverage of losses in the realization of advances for shareholding participation granted to companies such as CEPISA (R$ 29,8 million), CERON (R$ 110,3 million), ELETROACRE (R$ 59,3 million) and CEAM (R$ 132,3 million), since negative values of Stockholders Equity have been recorded for those companies, in an amount above the capital provided until the end of the second quarter, and such capital was insufficient for covering the liabilities. 2

3 Eletrobrás Of the R$ 331,7 million, as mentioned above, R$ 328,3 million refers to Advances for future capital increase made in previous periods and R$ 3,4 million, throughout. Considering that the privatization of those companies did not take place according to the scheduled period, ELETROBRÁS records such investments as Non-current assets. Due to the difference between the cost of acquisition of temporary investments and the eventual value of their realization, ELETROBRÁS, in a conservative procedure, adopts as a reference the stockholders equity value of those companies, considering the advances for future capital increase, even in the case of negative values, in light of the commitment to enhance the economic-financial situation of those companies. As a result, a complementary provision was made, in the amount of R$ 6,976 thousand (54,473 thousand for the 1 st quarter, ), as uncovered liabilities, coming to a provision of R$ 690,907 thousand (R$ 683,931 thousand as at March 31, ). R$ Million Company Result for the Result for the EBITDA quarter quarter EBITDA Ceam (19.3) (12.2) (16.7) (13.3) Cepisa (6.3) (7.7) (30.0) (12.2) Ceron (1.3) (6.7) (26.6) 2.3 Eletroacre (0.8) 0.4 (2.0) 0.8 Ceal (6.8) 5.2 (6.7) 9.5 Funding in companies under Temporary Investments During year, funds in the amount of R$ 62,6 million were transferred to companies classified as temporary investments, of which R$ 54,5 million as loans and R$ 8,1 million as Advances for future capital increase. Of those values, in the second quarter R$ 31,3 million were funded as loans and R$ 7,5 million as Advances for future capital increase. Trade of energy from Itaipu ELETROBRÁS started the billing of this service to the distribution companies, in January,. In light of this, the commitment of acquisition and pass-on of energy signed by Furnas and Eletrosul with the electric energy distribution companies, equivalent to 72,384 GW/year, were transferred to ELETROBRÁS. Supply tariff of Itaipu Binacional during is fixed at US$ 15.93/kW and the repass tariff (sale) at US$ /kW, representing an average tariff of US$ 27,43/MWh plus US$ 0,88/MWh for the cession to Paraguay. Shareholders remuneration The account named Shareholders Remuneration is the result of the application of Selic rate on three accounts: Dividends, regarding dividend for year paid on 05/12/, in the amount of R$ 449 million; 3

4 Eletrobrás Reserve of non-distributed dividends, calculated over the remaining stock of reserve of dividends of common shares, whose stock as at 03/31/ was R$ 3,993.7 million; Advance for future capital increase calculated on the remaining stock of the account Advances for future capital increase, whose stock, as at March 31, was R$ 1,8 billion originated from, mainly, from the purchase of CGTEE and shares of CEEE, representing R$ 1,6 billion of that amount. Financial charges over advances for future capital increase Financial charges on nondistributed dividends Financial charges on reserves of non-distributed dividends 2 nd 1 st 2 nd R$ thousand 1 st 106, , , , , , , , , , , ,854.7 Total 354, , , ,034.3 Energy Generation and Transmission The following map shows the extension of transmission lines, installed capacity and stockholders equity of the ELETROBRÁS System companies. Company Transmission Lines Installed Capacity Stockholders Equity Thousand Km MW R$ billion Chesf , Furnas , Eletronorte 8.1 5, Itaipu 6, CGTEE Eletrosul Partnerships Eletrobrás, pursuing a better tax policy, dating from the first quarter of, has promoted changes to its investments policy, under minority participation in new projects. Previously, the company invested in equity, through the purchase of a put option, on an specific date, with taxes charged periodically over the net income regarding the sale of shares. The new policy for investments considers the permanent participation as partner in the project. 4

5 Eletrobrás Assets Parent Company (R$ thousand) June / March/ June / CURRENT ASSETS Cash and banks 495, , ,252 Consumers and resellers 1,709,338 1,410,577 5,659 Loans and financing 2,670,175 3,002,361 2,985,568 Interest, commissions and charges 1,691,593 1,799,289 1,843,311 Marketable securities 260, ,744 79,612 Tax credits 581, , ,836 Stored materials Investment remuneration 219, , ,205 Sundry receivables 2,587 2,660 6,099 Fuel consumption account - CCC 736, , ,183 Renegotiated receivables 333, , ,384 Trade of electric energy 218, ,496 - Others 371, ,926 63,707 9,291,496 9,439,567 8,241,590 NON-CURRENT ASSETS Loans and financing 36,043,298 39,052,380 31,874,724 Marketable securities 831, , ,300 Studies and projects 60,916 61,622 49,357 Concessions to bid 233, , ,481 Tax credits 910, , ,190 Temporary investments 19,990 22,324 31,319 Collateral and linked deposits 38,335 38,335 36,818 Others 8,451 8,890 82,148 38,146,561 41,132,904 33,485,337 Advances for capital participation 2,998,693 3,280,206 3,004,652 41,145,254 44,413,110 36,489,989 PERMANENT Investments 37,581,807 36,965,560 38,660,071 Property, plant and equipment 6,004 5,983 12,891 Deferred ,587,860 36,971,592 38,673,011 Total Assets 88,024,610 90,824,269 83,404,590 5

6 Eletrobrás Liabilities Parent Company (R$ thousand) June / March/ June / CURRENT LIABILITES Loans and financing 249, , ,385 Charges on loans and financing 61, ,197 62,940 Subsidiaries payables 1,331,668 1,504,010 4,723 Fuel consumption account - CCC 709, , ,469 Suppliers 1,854,593 1,382,877 6,240 Compulsory loan 316, , ,300 Shareholders remuneration 48, ,656 1,509,234 Taxes and social contribution 328, , ,888 Actuarial liability 21,641 21,745 22,615 Others 56,223 58,414 65,045 4,976,675 5,256,404 3,274,839 NON-CURRENT LIABILITIES Loans and financing 4,606,146 5,380,119 4,620,482 Subsidiaries payables - - 1,034,269 Global Reversion Reserve - RGR 4,583,271 4,364,327 2,705,611 Compulsory loan 3,783,634 3,713,245 3,152,270 Taxes and social contribution 2,787,711 3,697,823 2,173,717 Provision for contingencies 1,081,455 1,012, ,374 Provision for deficits in investments 690, , ,608 Actuarial liability 79,583 75,777 79,034 Others 3,963 3,812 8,036 17,616,670 18,931,194 14,793,401 STOCKHOLDERS EQUITY Capital 20,785,196 20,612,196 20,612,196 Capital reserves 23,418,790 23,418,790 22,716,098 Income reserves 19,292,996 19,061,006 17,838,086 Accumulated Income (Losses) (6,079) 1,710,912 2,588,031 63,490,903 64,802,904 63,754,411 Advances for capital increase 1,940,362 1,833,767 1,581,939 65,431,265 66,636,671 65,336,350 Total Liabilities 88,024,610 90,824,269 83,404,590 6

7 Statement of Income OPERATING REVENUES Eletrobrás Parent Company (R$ thousand) Electric energy sales 1,620,249 3,517, Arrears interest on energy sales 8,250 8, Loans and financing: Interest, commisssions and charges 779,156 1,815, ,432 1,271,505 Net monetary variations (83,548) 275, , ,130 Net currency variations (2,980,070) (3,994,691) 3,161,568 3,181,668 Equity accounting 700, ,290 (1,472,776) (1,314,551) Financial profit from applications 42,691 89,456 53,839 98,683 Others 10,504 39,395 29,629 39,885 (-) PASEP and COFINS (106,986) (236,200) (48,125) (73,241) Reversal of prov.for questionable debtors 81, , ,137 2,407,462 2,450,283 3,443,079 OPERATING EXPENSES Loans and financing 163, , , ,228 Personnel, material and services 31,670 58,508 27,885 49,018 Depreciation and amortization ,895 6,596 Charges on taxes paid in installments 496 5,392 2,487 8,560 Provision for contingencies 69, , ,449 Provision for questionable debtors 3,241 5, Provision for recording of assets 331, , Energy purchased for resale 1,578,043 3,419,641 17,375 17,844 Charges on shareholders remuneration 354, , , ,034 Charges on consumers (20,133) Donations and contributions 15,021 34,898 16,929 32,250 Others 16,220 41,381 36,525 64,580 2,544,010 5,134, ,767 1,245,559 OPERATING RESULT (2,471,873) (2,727,402) 1,883,516 2,197,520 NON-OPERATING RESULT (6,312) (66,591) (282,710) (274,385) RESULT BEFORE SOCIAL CONT. AND INCOME TAX (2,478,185) (2,793,993) 1,600,806 1,923,135 Social contribution 246, ,722 (331,472) (337,494) Income tax 687, ,591 (919,174) (936,211) NET INCOME (LOSS) FOR THE PERIOD (1,543,991) (1,771,680) 350, ,430 INCOME(LOSS) PER 1000 SHARES (R$2.87) (R$3.30) R$0.65 R$1.21 7

8 Eletrobrás Assets Consolidated (R$ thousand) June / March/ June / CURRENT ASSETS Cash and banks 1,784,314 1,859,195 1,726,244 Consumers and resellers 5,681,152 5,180,534 5,879,615 Loans and financing 1,012, , ,033 Interest, commissions and charges 119, , ,612 Marketable securities 269, , ,691 Tax credits 884, , ,732 Stored materials 489, , ,162 Investment remuneration 41,275 28,983 2,454 Sundry receivables 447, , ,956 Fuel consumption account - CCC 730, , ,706 Renegotiated receivables 171, ,853 81,916 Trade of electric energy 218, ,496 - Others 395, , ,705 12,246,345 11,409,897 11,760,826 NON-CURRENT LIABILITIES Loans and financing 15,121,707 16,607,767 13,488,993 Marketable securities 1,215,811 1,203,773 1,110,219 Nuclear fuel stock 259, , ,582 Studies and projects 60,916 61,622 49,357 Concessions to bid 247, , ,427 Consumers and resellers 718,297 1,023,119 1,238,788 Renegotiable credits 1,798,463 1,570, ,176 Tax credits 1,054, , ,464 Temporary Investments 19,990 22,324 31,319 Collaterals and linked deposits 169, ,730 36,818 Others 775, , ,441 21,441,923 23,217,015 18,736,584 Advances for capital participation 257, , ,848 21,699,100 23,757,429 19,060,432 PERMANENT Investments 3,170,436 3,281,664 3,286,232 Property, plant and equipment 77,887,616 81,818,721 77,138,872 Deferred 1,056,537 1,024, ,419 82,114,589 86,125,346 81,049,523 Total Assets 116,060, ,292, ,870,781 8

9 Eletrobrás Liabilities Consolidated (R$ thousand) June / March/ June / CURRENT LIABILITIES Loans and financing 1,288,069 1,082,018 1,390,662 Charges on loans and financing 154, ,209 95,041 Fuel consumption account - CCC 709, , ,469 Suppliers 3,330,983 3,125,458 3,867,264 Compulsory Loan 316, , ,300 Estimated obligations 115, , ,772 Shareholders remuneration 53, ,709 1,514,846 Taxes and social contributions 1,129,556 1,032, ,952 Provision for contingencies 184, , ,621 Remuneration and reimbursement 306, , ,606 Actuarial liability 255, , ,879 Others 794, , ,046 8,639,490 8,789,077 10,478,458 NON-CURRENT LIABILITIES Loans and financing 24,141,661 27,408,417 22,566,720 Global Reversion Reserve - RGR 4,595,251 4,364,327 2,705,611 Compulsory Loan 3,783,634 3,713,245 3,152,270 Taxes and social contributions 3,779,270 4,681,573 3,179,889 Decommissioning of nuclear units 295, , ,327 Provisions for contingencies 1,588,174 1,504,870 1,374,459 Prov. for uncovered investments 690, , ,608 Actuarial liability 2,170,924 2,206,329 2,067,418 Others 642, , ,643 41,688,034 45,569,020 35,769,945 MINORITY PART. IN SUBSIDIARIES 301, , ,028 STOCKHOLDERS EQUITY Capital 20,785,196 20,612,196 20,612,196 Capital Reserves 23,418,790 23,418,790 22,716,098 Income reserves 19,292,996 19,061,006 17,838,086 Accumulated Income (Losses) (6,079) 1,710,912 2,588,031 63,490,903 64,802,904 63,754,411 Advances for capital increase 1,940,362 1,833,767 1,581,939 65,431,265 66,636,671 65,336,350 Total Liabilities 116,060, ,292, ,870,781 9

10 Eletrobrás Statement of Income Consolidated (R$ thousand) OPERATING REVENUES Electric energy sale 4,115,879 8,214,255 4,844,377 7,829,761 Subventions fuel consumption 616, , , ,692 Arrears interest on energy sales 137, ,390 62,493 94,867 4,870,043 9,218,745 5,074,237 8,254,320 Loans and financing: Interest, commissions and taxes 374, , , ,135 Net monetary variations (136,484) (168,587) 125, ,566 Net currency variations (2,593,194) (3,375,974) 2,375,078 2,347,756 Equity accounting 51,008 47,432 (828,088) (817,819) Income from financial applications 124, , , ,583 Others 153, , , ,742 (-) PASEP and COFINS (220,682) (457,788) (186,313) (360,483) Reversal of prov.for questionable debtors 106, , ,730,197 6,680,279 7,021,058 10,334,800 OPERATING EXPENSES Loans and financing 531,714 1,095, ,048 1,062,805 Energy purchased for resale 1,098,448 2,547,511 1,673,761 2,473,919 Fuel for production of electric energy 709, , , ,304 Personnel, material and services 599,010 1,061, , ,764 Depreciation and amortization 299, ,109 1,004,172 1,625,727 Charges on taxes paid in installments (2,527) 5,392 27,657 46,379 Provision for contingencies 69, ,124 67, ,838 Provision for credits of questionable payment 154, , Provision for losses at recording of assets 331, , Purchase of electric energy ,844 17,844 Charges on shareholders remuneration 354, , , ,034 Remuneration and reimbursement 247, , , ,587 Charges on the use of electricity network 35,460 82,613 7,072 35,334 Donations and contributions 19,986 44,857 27,574 51,320 Others 367, , , ,886 4,817,433 8,876,376 5,273,015 8,265,741 OPERATING RESULT (2,087,236) (2,196,097) 1,748,043 2,069,059 NON-OPERATING RESULT (9,091) (74,644) (287,695) (282,589) RESULT BEFORE SOC. CONT.AND INCOME TAX (2,096,327) (2,270,741) 1,460,348 1,786,470 Social Contribution 105, ,064 (303,510) (316,249) Income Tax 446, ,985 (814,559) (830,059) RESULT BEFORE PARTICIPATIONS (1,543,895) (1,771,692) 342, ,162 Minority Participation (96) 12 7,881 9,268 NET INCOME (LOSS) FOR THE PERIOD (1,543,991) (1,771,680) 350, ,430 10

11 Eletrobrás Shares Eletrobrás Local Market ELETROBRÁS shares recorded an increase in value as at the end of the second quarter,, as follows: preferred class B shares with 7.7% increase, and common shares with 8.45%. Regarding the same period, the Ibovespa index recorded a 15.07% increase, as well as the Electric Sector index, from BOVESPA, with a 16.02% increase. During the first quarter, ELETROBRÁS shares had daily trading of 157 million common shares and 528 million preferred class B shares. During the first semester ELETROBRÁS shares were influenced by the strong appreciation of the Real during the first quarter of, with a decrease in prices. Preferred class B shares had a decrease of 6.27%, and common shares, a 16.23% decrease. During the first semester, ELETROBRÁS shares had daily trading of 154 million common shares and 526 million preferred class b shares. Trading at Bolsa de Valores de São Paulo - BOVESPA Date Avg. Price Common shares Avg. Daily Avg. Number Volume of Trade Avg. Price Preferred shares Avg. Daily Avg. Number Volume of Trade Jan/ ,300, ,550, Feb/ ,950, ,200, Mar/ ,800, ,100, Apr/ ,650, ,450, May/ ,400, ,500, Jun/ ,250, ,900, Obs: Average price = R$ / 1000 shares ADR Market Since 1995, Eletrobrás has a registration in CVM for two American Depositary Receipts ADR Level I Program, of the company s common and preferred B class shares. The company s Level I ADR s are not allowed to publicly trade in the United States, and at the moment are traded on the over-thecounter market. At the end of the second quarter of the company s ADR s had a balance of million ADR s of common shares and 5.6 million ADR s of preferred shares, with a ratio of 500 shares per each ADR. The ADR programs, due to the Real appreciation in relation to the US dollar, recorded in the 1 st quarter of a depreciation in their quotations, which was inferior to the variation recorded by shares in the local market. ADR s of preferred shares had a positive variation of 27.2% and of 27.3% for the common shares. 11

12 Eletrobrás Latibex Program Since year 2000, ELETROBRÁS registered its common and preferred class B shares at LATIBEX, Program for the Trading of Latin-American shares at Madrid Stock Exchange, in Spain, with a reduced level of liquidity. The program for common shares increased 24.8% during the 2 nd quarter as compared with a negative performance of 4.1% for the first semester. The program for preferred shares is not recording daily trading. Capital Structure The 139 th General Extraordinary Shareholders Meeting, held on May 16,, has approved the increase of ELETROBRÁS capital, in the amount of R$ 173 million, through the capitalization of income reserves, from R$ 20,612,195, to R$ 20,785,195,909.48, without issuance of new shares. Capital as at % Capital Shareholders Number of Shares Real Value Type/Class Total Common 452,511,763,550 17,498,607, % 84.19% Federal Gov. 264,328,120,835 10,221,555, % 49.19% FND 22,810,794, ,092, % 4.24% BNDESpar 67,789,960,070 2,621,434, % 12.61% Others 97,582,887,747 3,773,525, % 18.15% Pref. A 73,460,000 2,840, % 0.01% Others 73,460,000 2,840, % 0.01% Pref. B 84,917,297,330 3,283,747, % 15.80% Federal Gov. 17,595,460, ,415, % 3.27% FND % 0.00% BNDESpar 532,937,780 20,608, % 0.10% Others 66,788,899,370 2,582,723, % 12.43% Total 537,502,520,880 20,785,195, % 12

13 Eletrobrás Preferred 15,8% 61,0% 20,7 % 18,3% 58,4 % Common 84,2% Federal Government BNDESPAR FND 15,0% 5,0% 5,9% 15,7% Minority resident Minority non-resident Shareholding Participation The complete table of Eletrobrás participation is available for consultation at: The shareholding participation in controlled companies and temporary investments are informed together with each company s financials. Loans and financing Eletrobrás is the owner of a loan portfolio of R$ 40 billion, as compared with its debt of R$ 5 billion, according to the table below: R$ thousand Receivable Payable Subsidiaries 33,034,131 Local Currency 473,966 Temporary Investments 7,345,497 Foreign Currency 4,442,554 Others 25,438 Total 40,405,066 Total 4,916,520 13

14 Eletrobrás Renegotiations of loans and financing contracts During years 2001 and, some subsidiary and federalized companies, specially ELETRONORTE, ELETRONUCLEAR, CEAM, MANAUS and CEPISA, have faced huge financial difficulties, which caused the increse of their debt towards ELETROBRÁS. With the objective of providing a better payment capacity to those companies, ELETROBRAS renegotiated, in the second, some contracts of loans and financing, with the suspension of payment of principal, postponement of due date of principal and reduction of interest rate and administration rate during, which afterwards, will be adjusted in order to compensate for the decrease of revenue this year. In order to reduce deficit and indebtedness of such companies, ELETROBRAS approved the transfer of the stock of debt of R$ 41 million, past due and due, of some loans and financing contratcs granted to CEAM for future capital increase, and will take the same measure for other federalized companies in the third quarter. Still considering the objective of reducing the indebtedness of subsidiary and federalized companies, ELETROBRAS is taking measures to refinance the debt stock until 12/31/, of loans and financing contracts of ELETRONORTE, ELETRONUCLEAR, MANAUS and CEPISA, as shown in the table below: Companies Values R$ million Eletronorte 878,059 1,828,692 Eletronuclear 206, ,882 Ceam 9,456 40,970 7,500 Manaus 30, ,017 Date Note: Restructuring of debt Refinancing of past due debt until 12/31/. Restructuring of debt Refinancing of past due debt until 12/31/. Restructuring of debt Advance for future capital increase Advance for future capital increase Restructuring of debt Refinancing of past due debt until 12/31/. Cepisa 134, Advance for future capital increase Number of employees March June March June

15 Eletrobrás External auditing As informed before, by the time the financials for the first quarter of were released, the Administration of ELETROBRÁS decided that all the companies in which ELETROBRÁS holds shareholding control should hire external auditors for their quarterly reports. In this second quarter of, all companies and also the companies classified as temporary investments, except CGTEE, (who is takinh the necessary steps to hire their external auditors), have their financials audited. 15

16 Subsidiaries Financial Statements 16

17 Itaipu Assets (US$ 1.00) June / March/ June / CURRENT ASSETS Cash and banks 105,194, ,060,955 31,237,309 Accounts receivable Service contracts 517,633, ,613, ,355,232 Obligations and loans receivable 768,993 1,037,084 16,651,162 Debtors 2,914,112 2,489,309 2,970,213 Stored materials 9,345,683 7,791,396 51,528,686 Advances to personnel 1,984,135 1,925,692 1,213,804 Advances to suppliers 1,175,909 1,238,878 1,521,146 Collateral and linked deposits 67,841 54,062 91, ,085, ,211, ,568,934 NON-CURRENT ASSETS Accounts receivable Service contracts 127,292, ,823, ,490,549 Obligations and loans receivable 92,645,848 81,093,065 73,720,679 Collateral and linked deposits 14,376,641 10,869,899 11,461, ,314, ,786, ,672,749 RESULTS ACCOUNT Result to compensate from previous years 560,360, ,360,776 1,417,492,966 Result of the period 163,334,219 40,443,779 (480,093,354) 723,694, ,804, ,399,612 PERMANENT Installations, equipment and others 17,609,221,698 17,581,974,584 17,541,002,024 17,609,221,698 17,581,974,584 17,541,002,024 Total Assets 19,206,316,956 19,096,777,431 19,428,643,319 17

18 Itaipu Liabilities (US$ 1.00) June / March/ June / CURRENT LIABILITIES Loans and financing 497,329, ,894, ,930,348 Charges in course to be paid 8,136,135 21,428,935 9,197,907 Remuneration and reimbursement 212,925, ,019, ,775,548 Estimated obligations 20,004,177 20,853,547 - Suppliers and others 12,803,323 12,835,987 24,496,577 Wages and social obligations 21,045,852 14,828,034 18,839,619 Contractual retention given in guaranty 550, , , ,794, ,358, ,730,811 NON-CURRENT LIABILITIES Loans and financing 18,131,277,121 18,074,261,938 18,201,682,926 Charges in course to be paid - 158, ,976,315 Remuneration and reimbursement - 5,867,213 - Estimated obligations 202,244, ,131, ,253,267 18,333,521,965 18,265,419,155 18,576,912,508 STOCKHOLDERS EQUITY Eletrobrás 50,000,000 50,000,000 50,000,000 Ande 50,000,000 50,000,000 50,000, ,000, ,000, ,000,000 Total Liabilities 19,206,316,956 19,096,777,431 19,428,643,319 18

19 Itaipu Statement of Income US$ 1.00 quarter semester quarter semester Operating revenues 361,310, ,882, ,250, ,425,939 Power supply 343,673, ,510, ,238, ,357,630 ANDE 12,744,000 19,116,000 28,263,830 42,593,460 ELETROBRÁS 330,929, ,394, ELETROSUL ,740, ,082,190 FURNAS ,234, ,681,980 Remuneration on power assignment 11,419,431 16,829,532 9,099,269 14,253,800 ELETROBRÁS 11,274,840 16,684, , ,801 ELETROSUL 27,831 27,831 1,694,370 2,624,850 FURNAS 116, ,760 7,108,464 11,012,149 Reimbursement of cost on power 6,217,179 6,542,557 1,912,931 3,814,509 entailed ELETROBRÁS 6,211,958 6,537,336 1,912,930 3,814,509 ANDE 5,221 5, Operating expenses 98,674, ,590,563 91,437, ,998,817 Remuneration and reimbursement 77,719, ,524,271 66,236, ,780,224 Royalties 56,143,703 82,565,971 47,259,474 74,696,162 Reimb. of adm. and supervision charges 4,318,746 6,351,229 3,635,344 5,673,510 Capital income 5,838,107 8,777,538 6,242,444 8,156,752 Remuneration due to transfer of energy 11,419,432 16,829,533 9,099,269 14,253,800 Exploration expenses 20,954,650 34,066,292 25,201,300 41,218,593 Personnel 16,891,608 26,658,391 22,064,336 35,127,618 Material and equipment 1,215,560 1,863, ,463 1,168,034 Third party services 1,673,179 3,501,324 1,661,560 3,633,271 Others 1,174,303 2,043, ,941 1,289,670 Result of Service 262,635, ,292, ,812, ,427,122 Financial revenues 6,315,024 10,885,763 4,650,932 6,998,704 Financial operations income 2,506,877 4,339,433 1,546,136 2,333,593 Arrears on energy bills 1,171,910 2,562, , ,972 Others 2,636,237 3,983,855 2,498,716 3,763,139 Financial expenses 197,257, ,629, ,894, ,362,461 Debt charges 206,063, ,607, ,994, ,187,006 Charges on rem. and reimbursement , ,154 Monetary variations (8,806,130) 131,021,768 15,243,959 4,210,188 Others Operating result 71,693,467 (40,451,336) 97,569, ,063,365 Non-operating result (175,802) 7, , ,541 Selected revenues 78, , , ,167 Selected expenses 254, ,887 31, ,626 Result for the period 71,517,665 (40,443,779) 97,749, ,912,906 19

20 Main Investments Project quarter Itaipu semester quarter US$ Million semester Units 9A and 18A Plan for conclusion of works Power made available quarter semester quarter semester 32,361 MW 64,722 MW 32,361 MW Itaipu makes available 10,387 MW monthly to Eletrobrás and 400 MW to Ande. 64,722 MW Power generated quarter semester quarter semester MWh MWh MWh MWh 22,057,401 43,137,293 21,717,263 40,980,189 Main Clients quarter semester quarter semester Client MW US$ Million MW US$ Million MW US$ Million MW US$ Million Ande 1, , , , Eletrobrás 31, , Eletrosul 5, , Furnas 24, , Installed Capacity MW Itaipu s installed capacity of 12,600 MW refers to its 18 units, and will remain unalterd until the conclusion of units 18 A and 9 A, scheduled for the 1 st Number of employees Total Generation Total Generation 3,198 1,046 3,192 1,041 20

21 Legal matters Itaipu US$ Million Short term Long term Short term Long term Tariff - per KW of available power per monthly (US$ 1.00) Loans and financing Creditor US$ Million Due US$ Million Due BNDES Eletrobrás 6, , National Treasury 11, , External debt - B.do Brasil until until

22 Furnas Assets (R$ thousand) June / March/ June / CURRENT ASSETS Cash and banks 15,558 24,462 27,206 Open-market operations 156, , ,761 Consumers, concessionaires and affiliates 2,794,519 2,776,225 3,764,874 Provision for questionable debtors (480,133) (322,816) - Loans and financing 66,990 42,084 23,894 Financed energy credits 123,234 97,914 55,367 Stored materials 51,189 50,932 47,596 Tax credits 226, , ,057 Taxes and contributions to be recovered 122,269 71, ,686 Expenses paid in advance 49 2,075 1,624 Collaterals and linked deposits 9,870 8,974 9,147 Debtors 140, , ,630 Others 19,077 48,546 16,934 3,246,066 3,301,506 4,638,776 NON-CURRENT ASSETS Consumers, concessionaires and affiliates 320, , ,025 Concessions to bid 14,280 14,277 14,946 Debtors 153, ,585 - Loans and financing 206, , ,375 Financed energy credits 553, , ,934 Securitized bonds 128, ,232 87,509 Collateral and linked deposits 45,093 43,871 26,225 Property and rights for sale 33,043 33,611 34,232 Others 48,426 51,742 83,815 1,503,700 1,672,678 1,280,061 PERMANENT Investments 4,764 4,868 5,019 Property, plant and equipment 13,248,428 13,171,087 12,514,117 (-) Obligations linked to concession (112,540) (112,540) (112,540) Deferred ,141,464 13,064,227 12,407,381 Total Assets ,038,411 18,326,218 22

23 Furnas Liabilities (R$ thousand) June / March/ June / CURRENT LIABILITIES Suppliers 1,211,249 1,559,422 2,567,589 Debt charges 18,675 26,966 24,148 Taxes and social contributions 622, , ,546 Loans and financing 124, , ,512 Estimated obligations 28,946 23,589 32,359 Provision for contingencies 92,970 92, ,700 Creditors 1,161,605 1,150,816 1,196,872 Fund.Real Grandeza (pension fund) -debt 78,694 76,490 57,086 Interest on capital 145, , ,658 Employees participation in income 31,114 31,144 20,648 Others 163, ,487 97,893 3,679,250 3,873,396 5,329,011 NON-CURRENT LIABILITIES Suppliers Loans and financing 1,311,820 1,520,815 1,118,736 Taxes and social contributions 627, , ,949 Fund.Real Grandeza (pension fund) actuarial 300, , ,963 provision Fund.Real Grandeza (pension fund) - debt 741, , ,020 Others ,980,882 3,216,031 2,702,098 STOCKHOLDERS EQUITY Capital 1,257,785 1,257,785 1,257,785 Capital reserves 5,689,429 5,689,429 5,267,475 Income reserves 1,495,364 1,495,364 1,113,050 Accumulated incomes 2,757,366 2,475,252 2,625,645 11,199,944 10,917,830 10,263,955 Resources for capital increase 31,154 31,154 31,154 11,231,098 10,948,984 10,295,109 Total Liabilities ,038,411 18,326,218 23

24 Furnas Statement of Income (R$ thousand) OPERATING REVENUES Supply of electric energy 9,539 13,798 4,519 6,352 Gross supply of electric energy 828,531 1,628,015 2,064,475 4,167,365 Short-term energy - 106,672-87,350 Use of electric grid 238, , , ,840 Other revenues 15,944 21,486 8,088 20,390 1,199,036 2,237,444 2,375,551 4,709,297 Deductions from Operating Revenue Taxes and contributions on revenues 43,443 78,600 84, ,742 Global Reversion Reserve 31,566 58,664 29,386 58,334 Other consumer charges , , , ,433 Net Operating Revenue 1,123,750 2,099,637 2,261,114 4,482,864 OPERATING EXPENSES Personnel 57, ,869 60, ,323 Material 6,873 12,889 7,634 14,218 Third party services 57, ,163 60, ,669 Financial compensation for use of hydro resources 20,200 39,712 12,637 23,688 Electric energy purchased for resale 447, ,288 1,632,115 3,148,411 Short-term energy (8,586) (2,782) 81,670 81,670 Supervision tax for electric energy services 3,920 7,844 3,484 6,865 Provision for questionble debtors - 157, Provision for contingencies ,098 67,768 Reversion of provisions - - (52) (1,986) Depreciation and amortization 121, , , ,057 Research and development 11,102 13, Others expenses 41,649 80,266 47,174 67, ,177 1,711,036 2,036,714 3,884,670 Result of service 207, , , ,194 Financial Revenue (Expense) Financial operations income 6,601 17,578 8,983 15,579 Debt charges (23,564) (47,485) (28,695) (51,328) Financial charges on other obligations (27,087) (104,231) (37,204) (66,916) Monetary var. and arrears on energy sold (79,542) (74,594) 333, ,873 Monetary var. and arrears on energy purchased 145, ,901 (328,600) (340,363) Monetary var. and interest financed energy credits 21,168 79,440 35,130 36,999 Monetary and currency var. of loans and financing 168, ,981 (227,042) (220,920) Monetary var. and interest on loans and financing 85, , ,919 24

25 Furnas Monetary variation on contingencies (751) (1,400) (336) (694) Others (94,044) (90,114) (29,131) (50,170) 202, ,029 (272,785) (294,021) Operating Result 410, ,630 (48,385) 304,173 Non-operating Result (691) (2,258) (2,539) (3,895) INCOME BEFORE SOC. CONT. AND I.T. 409, ,372 (50,924) 300,278 Social Contribution (28,817) (46,952) 31,614 (4,617) Income tax (98,498) (148,868) 75,318 (12,818) INCOME AFTER SOC. CONT. AND I.T. 282, ,552 56, ,843 Participation in results adjustment from previous period NET INCOME FOR THE PERIOD 282, ,564 56, ,843 NET INCOME PER 1000 SHARES - R$

26 Furnas R$ Million EBITDA EBITDA Margin 29.3% 29.9% 15.1% 18.6 Investment Program Project Installation of TL Cachoeira Paulista Installation Batéias Transm. System Installation Ouro Preto Transm. Syst. Installation Santa Cruz Thermal Unit Energy sale R$ Million MWh MWh MWh MWh 12,933,682 26,080,860 16,856,456 33,504,389 Energy purchased purchase at MAE is not included MWh MWh MWh MWh 4,406,444 9,508,925 5,665,248 11,130,150 Energy Generated MWh MWh MWh MWh 7,743,372 15,216,502 6,276,123 12,067,923 Level of losses 3% 3% 26

27 Furnas Main clients Clients MWh R$ million MWh R$ million MWh R$ million MWh R$ million Light 2,908, ,075, ,923, ,158, Eletropaulo 2,022, ,967, ,755, ,238, Cerj 1,466, ,102, ,997, ,151, CPFL 1,231, ,285, , ,701, Installed Capacity 9,292 MW Number of employees Employees Contracted personnel 3,441 3,453 2,156 2,092 Average Tariff R$/MWh 68,12 54,28 Transmission Lines extension - km 18,717 18,039 Loans and Financing R$ million Creditor Eletrobrás 1,455 1,292 Fund. Real Grandeza (Pension fund) Others 55 Total 2,276 2,035 Eletrobrás Participation COMMON PREFERRED TOTAL COM. PREF. TOTAL SOCIAL CAPITAL 50,710,649,000 14,293,398,000 65,004,047,000 Eletrobrás 50,618,949,530 14,088,223,014 64,707,172, % 98.56% 99.54% 27

28 Chesf Assets (R$ thousand) June / March/ June / CURENT ASSETS Availability Cash and banks 9,956 5,201 27,357 Open-market operations 369, , , , , ,871 Credits, values and assets Consumers and concessionaires 741, , ,721 Taxes and contributions to compensate 13,007 68,828 86,558 Advances to employees 18,080 17,777 19,816 Fuel consumption account - - 2,781 Stored material 51,831 51,391 45,761 Collateral and attached deposits 76, ,654 - Credits towards Eletrobrás Deferred Social Contribution 18,247 13,494 - Securities from the National Treasury 8,902 8,779 - Expenses paid in advance 2, ,395 Global Reversion Reserve 15,763 15,763 9,888 Others 70,228 66,147 42,303 1,396,375 1,442,015 1,428,094 NON-CURRENT ASSETS Credits, values and assets Consumers and concessionaires 637, , ,751 Repassed financing 3,319 2,658 5,069 Securities from the National Treasury 127, , ,029 Collateral and attached deposits 13,150 17,346 - Deposits linked to legal actions 33,784 33,841 34,037 Deferred Social Contribution 144, ,530 - Assets and rights for sale 5,483 5,449 2,119 Others 3,912 3,834 3, , , ,636 PERMANENT Investments 2,801 2,791 2,809 Property, plant and equipment 16,427,812 16,427,955 16,295,642 Obligations linked to concession (155,141) (155,886) (152,986) Deferred 1,196 1,315 1,669 16,276,668 16,276,176 16,147,134 Total Assets 18,642,316 18,663,427 18,340,864 28

29 Chesf Liabilities (R$ thousand) June / March/ June / CURRENT LIABILITIES Suppliers 646, ,219 1,286,375 Payment roll 3,832 3,137 9,642 Taxes and Social Contribution 84,330 78,399 44,311 Dividends ,345 4 Participation in income ,467 - Loans and financing 652, , ,375 Debt charges 6,183 14,403 29,738 Provision for contingencies 35,139 37,527 36,679 Estimated obligations 41,698 31,077 34,390 Charges on consumers to collect (RGR and CCC) 30,433 30,225 33,821 Financial compensation for the use of hydro resources 17,373 17,997 14,793 Private security entity 112, ,288 91,210 Other credits towards Eletrobrás 65,085 65,076 - Others 34,406 32,474 36,187 1,730,037 1,807,595 2,360,525 NON-CURRENT LIABILITIES Suppliers 46,021 50,898 53,275 Loans and financing 5,517,859 5,734,710 5,068,422 Deferred income tax 85,242 69,147 77,024 Taxes and Social Contribution ,095 Deferred ICMS 47,992 46,589 43,582 Private Security entity 866, , ,837 Provision for contingencies 215, , ,091 Charges on consumers to collect (RGR ) 11,980 10,820 9,651 Others 5,518 5,461 5,325 6,796,768 7,023,336 6,360,302 STOCKHOLDERS EQUITY Social Capital 1,263,333 1,258,333 1,256,333 Capital Reserves 7,416,199 7,416,199 7,416,199 Revenue Reserves 714, , ,092 Accumulated income (loss) 426, ,812 (79,983) 9,821,115 9,538,100 9,325,641 Resources for future capital increase 294, , ,396 10,115,511 9,832,496 9,620,037 Total Liabilities 18,642,316 18,663,427 18,340,864 29

30 Chesf Statement of Income (R$ thousand) quarter semester quarter semester OPERATING REVENUE Supply of electric energy 138, , , ,409 Gross energy supply 554,252 1,028, , ,173 Availability of transmission system 131, , , ,877 Other operating revenues 919 1, , ,961 1,556, ,311 1,412,208 DEDUCTIONS FROM OPERATING REVENUE Global Reversion Reserve - RGR (20,613) (38,445) (17,073) (36,245) Fuel for electric energy production (14,393) (27,256) (7,431) (15,348) ICMS on electric energy (19,394) (37,313) (11,786) (22,471) Charge on emergency capacity (12,249) (25,104) (3,302) (3,302) COFINS (5,214) (26,744) (20,202) (41,794) PASEP (6,566) (14,497) (4,377) (9,055) (78,429) (169,359) (64,171) (128,215) NET OPERATING REVENUE 746,532 1,386, ,140 1,283,993 COST OF ELECTRIC ENERGY SERVICE Cost with electric energy Energy purchased for resale (67,078) (112,834) (84,504) (388,696) Charges on the use of electric grid (19,288) (37,870) (5,040) (9,978) Cost of operation Personnel (26,470) (45,163) (20,899) (36,462) Material (1,778) (2,943) (1,401) (2,557) Fuel for electric energy production (6,891) (7,469) (1,130) (17,962) Third party services (4,710) (8,718) (4,501) (8,548) Fin. compensation for use of hydro resources (26,664) (54,980) (21,483) (40,427) Depreciation and amortization (120,475) (240,970) (119,884) (239,839) Supervision tax to ANEEL (3,159) (6,319) (2,551) (5,102) Nat. Fund for Scientific and Tech. Develop. (4,050) (8,099) (2,877) (5,755) Others (5,157) (10,434) (2,009) (1,446) (285,720) (535,799) (266,279) (756,772) COST OF SERVICE RENDERED TO OTHERS (2) (3) - - GROSS OPERATING INCOME 460, , , ,221 OPERATING EXPENSES Expenses with sales (43) (82) (31) (60) General and adm. Expenses Personnel (49,333) (84,204) (39,542) (68,534) Material (2,495) (4,607) (1,882) (3,479) Third party services (9,512) (17,666) (9,116) (16,147) Depreciation and amortization (7,619) (14,920) (6,647) (13,428) Labour, civil and tax issues (841) (2,843) (2,652) (4,483) Taxes (COFINS, PASEP, IPTU etc.) (8,605) (12,867) (270) (1,702) Others (5,654) (10,286) (5,977) (8,391) (84,102) (147,475) (66,117) (116,224) 30

31 Chesf RESULT OF SERVICE 376, , , ,997 FINANCIAL REVENUE (EXPENSE) Income from financial applications 27,255 53,203 12,838 23,888 Monetary variation and arrears in energy sold 67,126 88,141 10,018 17,373 Other monetary variations asset 9,510 20,845 2,727 3,446 Other financial revenues 1,451 5,401 2,649 5,193 Debt charges (181,055) (370,331) (150,395) (295,398) Monetary var. linked to permanent assets 144, ,906 (310,347) (319,825) Other monetary variations liability (11,837) (36,047) (13,144) (15,495) Other financial expenses (14,721) (29,725) (6,000) (13,802) 42,662 (130,607) (451,654) (594,620) OPERATING INCOME 419, ,827 (178,910) (183,623) Non-operating revenue Non-operating expense (34) (52) (140) (411) Non-operating result (182) Income (Loss) before Soc. Cont. and Inc. Tax 419, ,932 (178,837) (183,805) Current Social Contribution (26,369) (36,386) - - Deferred Social Contribution (11,301) (15,594) - - Current Income Tax (87,701) (129,608) 9,378 (1,534) Deferred Income Tax (16,094) (21,976) 34,939 47,897 NET INCOME (LOSS) FOR THE PERIOD 278, ,368 (134,520) (137,442) Net income (loss) per share (R$) (3.24) (3.31) 31

32 Chesf R$ million EBITDA EBITDA margin 67.6% 69.2% 66.0% 51.7% Main Investments Project R$ Infrastructure 4,371,504 6,941,063 3,709,871 13,194,116 Generation 51,877, ,646,716 13,384,714 42,525,320 Irrigation 18,923,622 32,668,618 20,203,970 32,564,008 Installation of Transmission System 49,418,823 84,657,636 45,786,556 84,162,482 Total 124,591, ,914,033 83,085, ,736,055 Energy sale MWh R$ mil MWh R$ thous. MWh R$ mil MWh R$ thous. 12,450, ,042 24,863,081 1,554,552 12,725, ,193 25,190,910 1,396,459 Energy purchased purchase at MAE is not included MWh R$ thous. MWh R$ thous. MWh R$ thous. MWh R$ thous. 1,014,744 67,078 2,019, ,834 1,224,162 79,556 2,452, ,696 Energy generated MWh MWh MWh MWh 9,769,928 20,726,765 10,080,205 18,428,994 Level of losses 5.4% 5.4% 32

33 Chesf Main Clients Clients MWh R$ MWh R$ MWh R$ MWh R$ Celpe 2,357, ,514 4,733, ,116 2,488, ,175 5,043, ,620 Coelba 2,338, ,974 4,680, ,409 3,077, ,139 6,072, ,707 Coelce 1,410,217 73,806 2,822, ,911 1,852,031 77,323 3,678, ,522 Cosern 845,239 42,764 1,694,025 78, ,986 39,844 1,979,674 76,933 Ceal 662,729 30,742 1,354,591 62, ,902 23,007 1,177,890 47,473 Installed Capacity 10,726 MW Number of employees Employees 5,491 5,012 Average tariff R$/MWh Loans and Financing R$ thousand Creditor Eletrobrás 5,433,603 5,426,797 Others 1,277, ,071 Total 6,710,897 6,299,868 Legal matters R$ thousand 250, ,770 Eletrobrás Participation COMMON PREFERRED TOTAL ORD. PREF. TOTAL SOCIAL CAPITAL 40,477,564 1,145,290 41,622,854 Eletrobrás 40,477, ,435 41,393, % 80.02% 99.45% 33

34 Eletronorte Assets Consolidated (R$ thousand) June / March/ June / CURRENT ASSETS Cash and banks 56,893 30,568 21,585 Open-market applications 70,309 35,350 39,243 Consumers and resellers 763, , ,190 Provision for credits of questionable liquidation (56,415) (44,854) (40,852) Debtors 36,583 31,562 52,206 Other credits 36,849 37,669 28,878 Stored material 46,420 38,631 38,958 Expenses paid in advance 3,629 5, , , ,208 NON-CURRENT ASSETS Concessionaires and affiliates 397, , ,138 ICMS to recover 407, , ,319 Legal deposits 41, ,524 52,051 Public titles - ELET 113, , ,158 Controlled and holding co s 1,246,184 1,246,490 1,245,494 Assets and rights for sale 50,561 50,677 57,452 Others 35,787 56,792 17,731 2,292,972 2,313,697 1,949,343 PERMANENT Investments 94,132 94,132 94,132 Property, plant and equipment 15,207,225 15,091,348 14,388,575 Deferred 14,881 15, ,456 15,316,238 15,200,832 15,104,163 Total Assets 18,567,180 18,420,465 17,976,714 34

35 Eletronorte Liabilities Consolidated (R$ thousand) June / March/ June / CURRENT LIABILITIES Suppliers 667, , ,663 Payment roll 4,800 4,025 3,555 Debt charges 1,598,134 1,378,221 1,172,531 Loans and financing 1,682,378 1,596,926 1,523,225 Private pension entity 41,151 38,673 - Regulatory taxes 54,023 51,548 - Taxes and Social Contribution 49,938 51,151 48,109 Estimated obligations 31,041 33,698 28,319 Provisions for operating contingencies 43, , ,041 Others 26,892 34,775 81,490 4,198,690 3,856,971 3,684,933 LONG TERM LIABILITIES Loans and financing 4,311,596 4,542,699 3,135,636 Private pension entity 40,719 47,124 62,788 Suppliers 125, ,534 67,627 Taxes and Social Contribution 54,991 58,976 72,726 Others 1,046 1, ,534,181 4,753,337 3,339,164 STOCKHOLDERS EQUITY Social Capital 2,843,235 2,843,235 2,801,017 Capital Reserves 7,003,627 7,003,627 9,158,640 Accumulated losses (35,053) (59,205) (1,007,040) 9,811,809 9,787,657 10,952,617 Resources for capital increase 22,500 22,500-9,834,309 9,810,157 10,952,617 Total Liabilities 18,567,180 18,420,465 17,976,714 35

36 Eletronorte Statement of Income quarter semester Consolidated (R$ thousand) quarter semester OPERATING REVENUE Supply of electric energy 339, , , ,471 Gross sale of electric energy 159, , , ,710 Use of transmission system 77, ,390 65, ,978 Electric energy traded at Wholesale Market 10,367 11,887-5,781 Donations and subventions - CCC 397, , , ,615 Other operating revenues 8,366 12,700 2,572 5, ,473 1,919, ,788 1,284,248 DEDUCTIONS FROM OPERATING REVENUE ICMS (42,168) (82,362) (52,524) (108,724) PASEP (5,549) (19,250) (2,540) (5,055) COFINS (29,593) (57,188) (11,725) (23,332) ISS (6,331) (6,431) (55) (115) Global reversion reserve - RGR (6,661) (23,069) (11,023) (21,192) (90,302) (188,300) (77,867) (158,418) NET OPERATING REVENUE 903,171 1,730, ,921 1,125,830 ELECTRIC ENERGY COST OF SERVICE Cost with electric energy Electric energy purchased for resale (111,698) (231,102) (86,441) (195,524) Charges on the use of electric grid (24,441) (44,704) (14,038) (27,837) (136,139) (275,806) (100,479) (223,361) Cost of operation Personnel (49,565) (89,745) (34,784) (70,966) Material (5,466) (16,380) (7,957) (15,887) Third party services (27,135) (48,149) (20,923) (39,095) Fuel for the production of electric energy (432,392) (797,344) (184,424) (343,843) Fin. compensation for use of hydro resources (25,498) (42,548) (16,138) (33,605) Depreciation and amortization (127,917) (257,467) (138,454) (277,089) Provisions Reversal of provisions - - 4,693 4,693 Others (3,903) (10,986) (7,300) (13,217) (671,876) (1,262,619) (405,048) (789,009) Cost of service rendered to third parties 270 (347) (166) (181) (807,745) (1,538,772) (505,693) (1,012,551) GROSS OPERATING RESULT 95, ,097 70, ,279 OPERATING EXPENSES Expenses with sales (17,554) (23,243) (12,809) (28,564) 36