Marketletter M rch/ arch 2008

Transcription

1 Marketletter March/2008

2 Index Page Analysis of the Result.. 02 Eletrobrás Subsidiaries Financial Statements.. 18 Itaipu Furnas.. 24 Chesf.. 32 Eletronorte.. 38 Boa Vista Energia.. 45 Manaus Energia.. 50 Eletronuclear.. 58 Eletrosul.. 64 CGTEE.. 70 Lightpar.. 76 Results from Temporary Investments.. 78 Ceron.. 79 Eletroacre.. 84 Ceal.. 89 Cepisa.. 94 ADR Level I ELET3, ELET6 XELTO, XELTB CAIFY, CAIGY DFS Capital Management Department DFSI Investor Relations Division invest@eletrobras.com.br

3 Analysis of the Result ELETROBRÁS PERFORMANCE DURING THE FIRST QUARTER 2008 E letrobrás recorded in this first quarter of this year a net income of R$ 842 million, corresponding to R$ 0.75 per share, 261% higher than the net income observed in the same period of the previous year when was registered a net income of R$ 233 million, equivalent to R$ 0.21 per share. 1 Shareholding Participations The results obtained by the controlled companies of Eletrobrás had a positive effect on the Company s result in the first quarter, in the amount of R$ 618 million, based on the equity method, influenced by the positive variation of the Real in the present stabilized economic scenario of Brazil and by the measures of financial and economic recovery and corporate management being carried out in the companies belonging to the Eletrobrás System. During the same period of 2007, the positive impact of the subsidiary companies on the parent company results was R$ 394 million, according to the comparative table below: R$ thousand Parent Company Consolidated 31/03/ /03/ /03/ /03/2007 Investments in controlled companies Equity method Interest on Capital Capital Income - ITAIPU Investments in affiliates Equity method Interest on Capital Other investments Interest on Capital Dividends Investment remuneration in partnerships Financial Result R$ thousand Parent Company Consolidated 31/03/ /03/ /03/ /03/2007 Financial Revenues (Expenses) Revenue from interest, commissions and taxes Debt Charges ( ) ( ) ( ) ( ) Charges on shareholders remuneration ( ) ( ) ( ) ( ) Revenues from financial aplications Other revenues (expenses) ( ) ( ) Net monetary and currency variation Net monetary variation (19.732) Net currency variation ( ) ( ) ( ) ( ) ( ) ( ) ( ) (11.961) ( ) ( ) As shown on the table above, in spite of the negative impact of the currency variations, net income of charges due to, mostly, its loans and financings portfolio, make it possible for the company to achieve an expressive gain (net), of R$ 719,2 million, as a result of its investment program throughout the years and of the very low level of debt. In 2007, the portfolio of loans and financing granted produced a net loss of R$ 12 million. Dollar and IGPM variation 1 st quarter st quarter 2007 IGP-M 2,38% 1.11% US$ (1,25%) (4.10%) 2.1 Loans Granted By the end of the first quarter of 200, Eletrobrás held 820 contracts granted of loans and financings, totalizing R$ 36,000,361 mil (December 31, R$ 36,522,430 thousand), as per table below: Currency US$ thousand (equivalent) % US$ thousand 2

4 Analysis of the Result US$ Dollar 8,722,163 42,38% 15,255,936 IGP-M 5,838,836 28,37% Real 5,309,960 25,80% Yen 252,438 1,23% EURO 458,823 2,22% Total 20,582, ,00% Parent Company R$ thousand 31/03/ /12/2007 Current Principal Current Principal Charges Non- Charges Non- Average Rate Value Current Current Average Rate Value Current Current Controlled co s and controlled as a whole FURNAS 8,67% ,86% CHESF 11,64% ,68% ELETROSUL 6,14% ,54% ELETRONORTE 15,73% ,63% ELETRONUCLEAR 12,33% ,35% CGTEE 11,68% ,00% LIGHTPAR 0,00% ,00% ITAIPU 7,07% ,07% OTHER CEPISA 9,88% ,71% CERON 11,44% ,44% CEMIG 6,76% ,76% COPEL 8,39% ,39% CEEE 9,33% ,33% DUKE 10,00% ,00% AES TIETÊ 10,00% ,00% AES ELETROPAULO 9,30% ,85% TRACTBEL 12,00% ,00% CELPE 4,44% ,02% CEMAR 6,07% ,07% CESP 9,33% ,32% OUTRAS ( - ) PCLD - (43.527) (46.109) - - (38.785) (41.845) T O T A L CONSOLIDATED R$ Thousand 31/03/ /12/2007 Current Principal Current Principal Charges Non- Charges Non Average Rate Value Current Current Average Rate Value Current Current Controlled co s and controlled as a whole FURNAS CHESF ELETROSUL ELETRONORTE ELETRONUCLEAR CGTEE LIGHTPAR 7,07% ITAIPU ,07% Other 9,88% CEPISA 11,44% ,71% CERON 6,76% ,44% CEMIG 8,39% ,76% COPEL 9,33% ,39% CEEE 10,00% ,33% DUKE 10,00% ,00% AES TIETÊ 9,30% ,00% AES 12,00% ,85% ELETROPAULO TRACTBEL 4,44% ,00% CELPE 6,07% ,02%

5 Analysis of the Result CEMAR 9,33% ,07% CESP ,32% OUTRAS ( - ) PCLD - (43.527) (46.109) - - (38.785) (41.845) T O T A L The long-term installment of the loans and financing granted with own resources and sectoral resources, including onlendings, have the following maturities After 2013 TOTAL Parent Company Consolidated Loans Obtained Eletrobrás ended this first quarter of 2008 with 12 payable contracts, amongst loans, financings and bonds, which totalized R$ 1,775,533 thousand (December 31, R$ 1,716,302 thousand), shown as follows: Currency US$ thousand (equivalent) % R$ thousand US$ Dollar 627,168 61,78% Yen 233,463 15,22% EURO 154,482 23,00% Total 1.015, ,00% Average Rate Parent Company R$ thousand 31/03/ /12/2007 Current Principal Current Principal Charges Non- Charges Non- Value Current Current Average Rate Value Current Current Foreign Currency Financial Institutions BID 5,62% ,62% Corporación Andino de Fomento - CAF 8,03% ,06% Kreditanstalt fur Wiederaufbau - KFW 5,73% ,73% AMFORP & BEPCO 6,50% ,50% Dresdner Bank 6,25% ,25% Eximbank 2,15% ,15% Other 6,40% Bonds Bonds - Dresdner Bank 7,75% ,75% Other National Treasury - Itaipu Local Currency FIDC Other Average Rate Consolidated R$ thousand 31/03/ /12/2007 Current Principal Current Principal Charges Non- Charges Non- Value Current Current Average Rate Value Current Current Foreign Currency Financial Institutions BID ,62% Corporación Andino de Fomento - CAF ,06% Kreditanstalt fur Wiederaufbau - KFW ,73% AMFORP & BEPCO ,50% Dresdner Bank ,25% Eximbank ,15% Other

6 Analysis of the Result Bonds Bonds - Dresdner Bank ,75% Other National Treasury - Itaipu Local Currency FIDC Other a) The debts are guaranteed by the Government and/or by Eletrobrás b) The total debt in foreign currency, including financial charges, corresponds in the parent company to R$ 1,775,533 thousand, equivalent to US$ 1,015,112 thousand and the consolidated debt amounts to R$ 14,551,668 thousand, equivalent to US$ 8,319,517 thousand. The percentage breakdown by currency is presented as follows: US$ EURO YEN Parent Company 62% 15% 23% Consolidated 94% 3% 3% c) The loans and financings are subject to charges, at an average rate in 2008 of 7.03%p.a, and of 6.83 %p.a in d) The long-term loans and financing stated in thousand of US dollars, have the following maturities: Parent Company Consolidated Após 2013 TOTAL Operational Provisions R$ mil Parent Company Consolidated 31/03/ /03/ /03/ /03/2007 Constitution Contingencies PCLD Consumers and Resellers PCLD - RTE - - (68.284) ( ) PCLD - CCEE PCLD Financings and loans ICMS credits Present Value Adjustment - - ( ) - Temporary Investments Unsecured liabilities Losses in the Operation Other (19.735) (-) Reversion Temporary Investments Unsecured liabilities ( ) - ( ) - Losses in the realizations ( ) - ( ) - ( ) ( ) ( ) ( ) Incorporation of Compania Energética do Amazonas SA -- CEAM by Manaus Energia S.A. -- MESA On March 28, 2008, the Stockholders of Companhia Energética do Amazonas SA -- CEAM approved its incorporation by Manaus Energia SA - MESA., subsidiary of Centrais Elétricas do Norte do Brasil SA -- Eletronorte. Eletrobrás had 97.96% of the share capital of CEAM and holds 98.66% of the share capital of Eletronorte. CEAM and MESA work providing electric energy to the interior and to the capital of the state of Amazonas, respectively. The operation, carried out within the policy of the Corporate Governance of Eletrobrás, created a single company to serve the entire state of Amazonas and will provide greater synergy in operational activities. As a result of this merger, a provision for losses on investments of CEAM in the amount of R$ 697,150 thousand, was fully reversed and 5

7 Analysis of the Result it was also reversed the provision to cover the Unsecured liabilities, valued at R$ 657,508 thousand, totaling $ 1,354,658 thousand, shown in the table above on the operational provisions,. At the same time, the Administration of the Company identified a loss in the corresponding investment in the asset of CEAM, based on the evaluation report prepared to support the process of incorporation of CEAM by MESA, which amounts to R$ 1,436,223 thousand, recognized the result of the period, as losses in the execution of investments. 5 - Consolidated Balance Sheet (for information purposes, only) R$ thousand 03/31/07 WITH ITAIPU WITHOUT ITAIPU Assets Current Assets Consumers and Resellers Loans and Financing Other Non Current Loans and Financing Others Investments Property, plant and equipment, deferred and intangible Total Assets Liabilities and Stockholders Equity Current Liabilities Loans and financing Suppliers Others Non Current Loans and financing Other Stockholders Participation - ANDE Stockholders Equity Total Liabilities and Stockholders Equity Statement of Income (for information purposes, only) R$ thousand 31/12/2007 WITH ITAIPU WITHOUT ITAIPU Operating Revenues Transactions with electric energy Deduction ( ) ( ) Others Operating Expenses Energy purchased for resale ( ) ( ) Depreciation and amortization ( ) ( ) Result to compensate from Itaipu ( ) - Others ( ) ( ) ( ) ( ) Operating Result before Financial Result Financial Revenues (expenses) ( ) Result of corporate participation Operating Result

8 Analysis of the Result Non-Operating Result ( ) ( ) Result before social contribution and income tax Social contribution and income tax ( ) ( ) Result before participations Net Income participation - - Minority participation Net income for the period Net income per share R$ 0,75 R$ 0,75 7

9 Eletrobrás Balance Sheet for the period ended on March 31 (R$ thousand) Parent Company Consolidated Assets Current Assets Cash and banks 6,105,125 3,512,605 9,350,240 6,144,354 Consumers and resellers 1,185,413 1,109,383 3,560,154 3,884,264 Loans and financing 2,934,834 6,177,971 1,386,436 1,403,765 Fuel consumption account - CCC 571, , , ,767 Investment remuneration 655, , , ,815 Renegotiated credits 111, , , ,280 Deferred assets 1,047, ,355 1,713,307 1,176,261 Reimbursement rights - 82,939 4,561 82,939 Debtors 394,530 66, , ,069 Stored materials 1,932 2, , ,556 Expenses paid in advance 13-66,603 42,074 Others 66, , , ,593 13,074,837 12,839,417 19,120,421 15,204,739 Non-Current Assets Loans and financing 33,065,527 30,800,631 12,715,631 13,142,859 Renegotiated credits 183,660 2,969,815 1,898,508 4,643,978 Bonds and marketable securities 1,494,009 1,431,488 1,497,394 1,435,378 Stored nuclear fuel , ,299 Studies and projects 294, , , ,028 Consumers and resellers , ,947 Deferred assets 1,416, ,959 2,542,228 1,762,775 Collaterals and linked deposits - 149, , ,637 Fuel consumption account - CCC 520, , , ,920 Reimbursement rights 857, ,417 - Others 66,393 46, , ,900 37,898,181 36,967,976 21,479,476 23,851,720 Advances for shareholding participation 1,826, ,756 4,027 80,383 39,724,229 37,668,732 21,483,503 23,932,103 Investments 43,572,610 42,663,993 5,459,881 4,731,111 Property, plant and equipment 27,638 29,837 73,610,983 76,801,985 Intangible 55,095 56, , ,658 Deferred 5,899 1,232 44,864 44,263 43,661,242 42,752,009 79,600,855 81,994,016 Total Assets 96,460,308 93,260, ,204, ,130,858 8

10 Eletrobrás Parent Company Consolidated Liabilities and Stockholders Equity Current Liabilities Loans and financing 172, ,642 1,062,872 1,793,995 Compulsory loan 94, ,443 94, ,443 Suppliers 1,115,186 1,376,695 1,888,548 1,692,372 Advances from clients 214, , , ,494 Taxes and social contributions 385, ,527 1,244, ,031 Fuel consumption account - CCC 532, , , ,306 Shareholders remuneration 896, , , ,182 Credits from the National Treasury 61,695 47,210 61,695 47,210 Estimated obligations 80,423 9, , ,030 Reimbursement obligations 468, ,545 - Complementary security fund , ,860 Provisions for contingencies - - 1,116,935 1,091,491 Research and development ,652 - Remuneration and reimbursement ,308 Regulatory charges ,595 - Others 199, , , ,662 4,221,316 3,511,737 10,049,405 9,011,384 Non-Current Liabilities Loans and financing 1,602,968 1,922,853 13,332,688 17,192,633 Credits from the National Treasury 901, , , ,798 Supply ,803 Global Reversion Reserve - RGR 6,561,628 6,286,530 6,561,628 6,287,469 Compulsory loan 209,152 93, ,152 93,742 Taxes and social contributions - 389,986 1,634,975 1,873,665 Decomissioning of assets obligation , ,328 Anticipated energy sale - - 1,051,362 1,009,382 Fuel consumption account - CCC 520, ,920 1,349, ,920 Provisions for contingencies 981,624 1,298,356 1,964,073 2,129,490 Complementary pension fund ,404 1,787,444 Provision for uncovered liability in controlled co s 246, , , ,377 Reimbursement obligation - - Others 95,321 4, , ,373 11,120,271 11,351,344 28,777,092 33,342,425 Non-controlling shareholders participation , ,972 Stockholders Equity Social Capital 24,235,829 24,235,829 24,235,829 24,235,829 Capital Reserves 25,907,304 25,907,304 25,907,304 25,907,304 Re-evaluation reserves 208, , , ,680 Income reserves 26,015,530 24,279,129 26,015,530 24,279,129 Accrued income 841, , , ,020 77,208,297 74,885,962 77,208,297 74,885,962 Advances for capital increase 3,910,424 3,511,115 3,910,424 3,511,115 81,118,721 78,397,077 81,118,721 78,397,077 Total Liabilities and Stockholders Equity 96,460,308 93,260, ,204, ,130,858 9

11 Eletrobrás Statement of Income for the period ended on March 31 (R$ thousand) Parent Company Consolidated Operating Revenues reclassified reclassified Operations of electric energy 1,994,601 1,698,219 6,931,312 5,476,712 (-) Sectorial charges - - (291,483) (247,938) (-) ICMS - - (117,003) (102,328) Shareholding participations 617, , , ,320 Other revenues 2, ,390 81,622 2,614,292 2,092,122 6,921,753 5,358,388 Operating Expenses Personnel, Material and Services 56,066 59, , ,692 Electric energy purchased for resale 2,016,777 1,580,073 1,822,433 1,257,580 Fuel for production of electric energy ,627 83,722 Social contributions - PASEP and COFINS 20,068 12, , ,085 Use of electric grid , ,124 Financial compensation for the use of hydro resources ,360 54,331 Depreciation and amortization 1,767 1, , ,865 Operating provisions (1,268,450) 124,232 (1,374,393) 298,084 Sales of assets loss 1,436,222-1,501,243 - Result from Itaipu to compensate ,395 18,079 Donations and contributions 40,124 41,118 52,466 51,114 Others (17,080) 54,055 95, ,660 2,285,494 1,872,432 5,054,446 3,917,336 Operating Result before Financial Result 328, ,690 1,867,307 1,441,052 Financing revenues (expenses) Revenue from interest, commission and fees 880, , , ,089 Debt charges (109,612) (111,414) (344,818) (634,666) Charge on shareholders resources (332,116) (342,051) (342,600) (349,436) Revenues from financial aplication 170, , , ,266 Net monetary variation 268, , ,349 (19,732) Net currency variation (159,602) (755,760) (234,710) (620,899) Other financial (expenses) revenues ,518 37,829 45,156 Financial Result 719,183 (11,961) (221,647) (1,034,222) Operating Result 1,047, ,729 1,645, ,830 Non-Operating Result (321) 743 (276,572) (1,539) Result before Social Contribution, Income Tax and Monority Participation 1,047, ,472 1,369, ,291 Social Contribution (150,789) 19,309 (389,444) (127,277) Income tax (55,346) 5,380 (140,469) (44,867) Result before Participations 841, , , ,147 Net Income participation Minority Participation - - 2, Net income (loss) for the period 841, , , ,161 Net incole (loss) for share R$0.75 R$0.21 R$0.75 R$

12 Eletrobrás Cash Flow for the period ended on March 31, 2008 (R$ thousand) Parent company Consolidated Operating Activities Net income for the period 841, , , ,161 Adjustments to reconcile net income with cash generated by operations Depreciation and amortization 1,767 1, , ,443 Long-term net monetary variations (100,717) 429,941 (50,604) 405,987 Adjustment in investments (576,616) (387,467) (275,697) (144,207) Regulatory assets (87,266) - (87,266) - Long-term provisions (668,505) (257,857) (520,688) (66,208) Adjusted to present value - - (260,556) - Minority participation result - - (2,350) (14) Financial charges applied over stockholders equity 313, , , ,126 Result from Itaipu to compensate ,395 (18,079) Sales of assets ,728 - Other 61,982 86,395 29,848 15,516 (213,871) 433, ,126 1,277,725 (Increases) decreases in operating assets Consumers and resellers 163,845 19,387 62,188 59,038 Loans and financing - principal 30,966 (30,936) 122,808 11,023 Loans and financing - charges 68,528 (161,959) (2,732) - Fuel consumption account - CCC (21,711) 267,669 (74,940) 263,788 Investment remuneration (19,972) 123,480 (8,404) 42,640 Bonds and marketable securities Renegotiated credits 1,010 (3,519) (21,618) (27,122) Tax credits 725, , , ,076 Reimbursement right 179,460 (1,281) 174,899 (1,281) Debtors (103,690) (64,304) (93,870) (274,845) Stored materials 586 (168) (43,117) (9,740) Expenses paid in advance ,225 Others 7,185 (16,672) (100,235) (31,692) 1,031, , , ,110 Increases (decreases) in operating liabilities Reimbursement obligations 24,320 (9,849) 24,320 (11,628) Loans and financing - principal 6,736 31,523 (411,041) (196,184) Loans and financing - charges 26,399-44,714 - Compulsory loan (2,027) (3,663) (2,027) (3,663) Suppliers (154,178) 216,774 (403,381) (284,531) Anticipated energy sale 12,406-9, ,585 Taxes and social contributions (706,864) (603,956) (579,743) (491,624) Fuel consumption account - CCC 16,973 (282,572) 16,973 (282,572) Shareholders remuneration 15,427 8,937 29,014 8,972 Credits from the National Treasury 3,544 (3,913) 3,544 (3,913) Estimated obligations 2,148-28,187 8,421 Complementary security plan - - (3,251) (34,495) Provisions for contigencies , ,192 Regulatory charges - - (82,358) - Research and development ,698 - Others 165,401 (37,943) 266,746 (10,692) (589,715) (684,662) (953,300) (990,132) Resources from (applied in) operating activities 227, , , ,703 Financing Activities Long-term loans and financing obtained , ,768 Long-term financing obtained transferred to current (389,689) (149,000) (287,434) (304,917) Loans and financing -granted (80,571) (219,015) (131,588) (244,223) Loans and financing granted - receipt 1,164, , , ,314 Transferred from long to short term 73, ,967 - Refinancing obtained (transferred from current to non-current liabilities) - 3, ,388 45,945 Refinancing granted (transferred from current to non-current assets) (622,096) (245,125) (1,085,800) (179,517) Compulsory loan and Global Reversion Reserve 79, ,210 79, ,210 Others 6,948 (3,570) 12,644 (71,542) Resources from (applied in) financing activities 231, ,387 1,270, ,038 Investment Activities Acquisition of permanent assets (131) (229) (797,908) (575,812) Investments - - (66,435) 4,286 Dividends received 59,993 10,483 59,993 - Resources from (applied in) investment activities 59,862 10,254 (804,350) (571,526) Increase (reduction) in cash and cash equivalent 519, ,726 1,255, ,215 Cash and cash equivalent beginning of period 5,585,519 2,877,879 8,094,907 5,459,139 Cash and cash equivalent end of period 6,105,125 3,512,605 9,350,240 6,144, , ,726 1,255, ,215 11

13 Eletrobrás Structure of Eletrobrás Eletrobrás Itaipu 50% IC = 14,000 MW Lightpar 81.61% Furnas 99.54% IC =8,921 MW TL = 19,440 km Chesf 99.45% IC = 10,618 MW TL = 18,260 km Eletronorte 98.66% IC = 8,128 MW TL = 9,842 km Eletrosul 99.71% TL = 9,107 Km Eletronuclear 99.80% IC = 2,007 MW CGTEE 99,94% CI = 490 MW Manaus Energia (Distribution) 100% IC = 531 MW Boa Vista Energia (Distribution) 100% IC = 52 MW Ceron (Distribution) 99.96% Eletroacre (Distribution) 93.29% Ceal (Distribution) 75.16% Cepisa (Distribution) 98.56% Ceam (Distribution) 97.96% % = Participation in total capital IC = Installed Capacity TL = Extension of transmission lines Capital structure As at March 31, 2008 the capital of Eletrobrás had the following composition: Shareholders Common Pref. "A" Pref. "B" Total Total 905,023,527 % % 224,328,055 % 1,129,498,502 % Federal Gov. 488,656, ,191, ,847, BNDESpar 133,757, ,757, FND 45,621, ,621, FGP 40,000, ,000, Others 196,987, , ,137, ,271, Under CBLC Custody 196,923, , ,956, ,963, Residents 59,080, , ,588, ,753, Non-residents 54,001, ,293, ,294, ADR Prog. 83,840, ,074, ,915, Others 64, , ,180, ,308, Residents 36,811 63, ,176, ,276, Non-residents 27, ,002 31,758 12

14 Eletrobrás Common 80.1% Preferred 19.9% Common Preferred B Stocks Thousand Participation Stocks Thousand Participation Federal Goverment BNDESpar FND FGP Minority Residents Minority Non-residents 488, ,758 45,622 40,000 59, , % 14.8% 5.0% 4.4% 6.5% 15.3% 35,191 84, , % 37.8% 46.5% 905, % 224, % Eletrobrás Shareholders Type 03/31/ /31/2007 Variação Common 3,418 3,992 (14.38%) Pref. 15,802 16,444 (3.90%) Total 19,220 20,436 (5.95%) In the first quarter of 2008, the amount of shareholders decreased 5.95%. There was a decrease of 14.38% of the common shareholders and 3.90% of the preferred shareholders. Eletrobrás non-resident Shareholders Type 03/31/ /31/2007 Variação Common % Pref % Total % There was an increase of 3.85% of non-resident shareholders in the first quarter of An increase of 6.94% of the commons shareholders and 0.71% of the preferred shareholders, can be noticed Eletrobrás resident shareholders Type 03/31/ /31/2007 Variação Common 3,110 3,704 (16.04%) Pref. 15,517 16,161 (3.98%) Total 18,627 19,865 (6.23%) Concerning the resident shareholders, in the first quarter of 2008, there was a decrease in share participation of 6.23%. There was a decrease of 16.04% in the common shares participation and 3.98% in the preferred shares. Share performance analysis Shares Eletrobrás Preferred Shares - ELET6 13

15 Eletrobrás During the first quarter of 2008, the Eletrobrás preferred shares (ELET6) had a valuation of 9.80% from R$ on December 28, 2007 to R$ on March 31, The maximum price reached by the preferred shares was R$ 27.45, on March 13 and the lowest price registered was R$ 21.20, on January 24. Trading Performance 2008 Price (Average daily price) São Paulo Stock Exchange Number of Trades (Average daily number) Number of Shares (Average daily number) Jan ,259 1,265,614 Feb ,252 1,237,811 Mar ,382 1,310,840 Eletrobrás Common Shares - ELET 3 During the first quarter of 2008, the Eletrobrás common shares (ELET3) had a valuation of 11.99% from R$ on December 28, 2007 to R$ on March 31, The maximum price reached by the preferred shares was R$ 27.80, on March 13 and the lowest price registered was R$ 20.64, on January

16 Eletrobrás Trading Performance 2008 Analysis of Eletrobrás shares and Ibovespa São Paulo Stock Exchange Number of Trades Price (Average (Average daily daily price) number) Number of Shares (Average daily number) Jan ,810 Feb ,136 1,276,942 Mar ,283 1,258,735 The table below represents, in index-numbers, the performance of Eletrobrás shares and IBOVESPA. In the period of December, 2007 to March, 2008 the IBOVESPA had a negative variation of 4.57%, whereas the common shares (ELET3) and the preferred shares (ELET6) had a positive variation of 11.99% and 9.80%, respectively. ADR Programs ADR Level I ELET 3 ELET 6 IBOVESPA Dec ,00 100,00 100,00 Jan-08 91,52 97,08 93,12 Feb ,93 108,06 99,38 Mar ,99 109,80 95,43 The Eletrobrás shares traded in the American over-the-counter market, through the ADR level 1 program - both the common shares (CAIFY) and the preferred ones (CAIGY) had a valuation in the first quarter of While the US Dollar had a devaluation in relation to the Real of 1.25%, the common shares and the preferred shares had a valuation of 18.53% and 12.02%, respectively. Monthly Variation Table 2008 CAIFY CAIGY Dollar Jan (4.56%) (1.94%) (0.62%) Feb 17.72% 16.60% (4.37%) Mar 5.50% (2.03%) 3.91% Accumulated 18.53% 12.02% (1.25%) 15

17 Eletrobrás CAIGY Eletrobrás Preferred Shares (1 ADR = 500 shares) During the first quarter of 2008, Eletrobrás ADRs of preferred shares registered the highest price on February 26, closing at US$ The lowest price registered was of US$ on January 25. This asset closed the quarter priced at US$ 14.45, with a valuation of 12.02% in relation to December 31, 2007 when it closed at US$ CAIGY US$ 2008 Closing Nº of ADRs held US$ by Eletrobrás Jan ,270,907 Feb ,119,891 Mar ,074,451 CAIFY Eletrobrás Common Shares (1 ADR = 500 shares) During the first quarter of 2008, Eletrobrás ADRs of common shares registered the highest price on March 05, closing at US$ The lowest price registered was of US$ on January 23. This asset closed the quarter priced at US$ 15.35, with a valuation of 15.83% in relation to December 31, 2007 when it closed at US$ CAIFY US$ 2008 Closing Nº of ADRs held US$ by Eletrobrás Jan ,401,766 Feb ,202,216 Mar ,735,851 Latibex (Program for trading of shares of Latin-American Companies at the Madrid Stock Exchange) The Euro had a valuation in comparison with the Real of 5.83% in the first quarter of In the same period, the common shares (Xelto) and the preferred ones (Xeltb) had a valuation of 5.32% and 1.10%, respectively. Monthly Variation Table 2008 Euro Xeltb Xelto Jan 0.25% (3.76%) (9.12%) Feb (2.23%) 14.47% 20.43% Mar 7.97% (8.22%) (3.77%) Accrued 5.83% 1.10% 5.32% XELTB The preferred shares in the Latibex Program ended the first quarter of 2008 at On December 28, 2007, this asset closed at 9.05, which shows a valuation of 1.10%. The highest price was reached on February 27, at The lowest price was 8.04, on January 23. XELTO 2008 Closing - Neg. Jan ,337 Feb ,920 Mar ,389 The common shares in the Latibex Program ended the first quarter of 2008 at On December 28, 2007, this asset closed at 9.21, which shows a valuation of 5.32%. The highest price was reached on February 27, at The lowest price was 9.70, on January 23. Corporate Governance Bovespa Sustainability Index (ISE) 2008 Closing - Neg. Jan ,782 Feb ,102 Mar ,970 As a result of work developed by the Sustainnability Committee, and coordinated by the Capital Management Department, Eletrobrás had its sares listed in the above mentioned index in December Other companies with similar corporate governance and sustainability pactices, based on the Tripple Bottom Line concept were also accepted in the index. Presently, 34 companies, representing 14 sectors are listed in the Bovespa Sustainability Index. 16

18 Eletrobrás Level 1 of Corporate Governance - Bovespa Eletrobrás is still acting in order to increase its transparency levels. On September 29, 2006 the company joined the Level 1 of corporate governance at Bovespa. The adhesion to the levels established by Bovespa is on voluntary basis, and the company, its subsidiaries and the administration make a commitment to follow the rules established in the Bovespa regulation. The main purposes are the improvement of information passed on to shareholders and the market in general (greater disclosure) and a broader shareholder base. American Depositary Receipts (ADRs) Level 2 These are certificates issued by foreign banks which correspond to Brazilian company shares. The ADR s have three different levels. Level 3 allows for the insurance of new shares. Presently, the ADR s negotiated by Eletrobrás are Level 1, traded on the over-thecounter market. That is: they are not listed in stock exchanges and it is not possible to raise funding with these ADR`s. The purpose is to present the company to the investor, and the preparation for future funding efforts. Eletrobrás has been working on its accounts to fulfill US Gap requirements such as actuarial positions, and fulfillment of the 20-F document. The company is also working on internal controls in order to fulfill SOX requirements and plans to upgrade its status to ADR Level 2, thus trading in the New York Stock Exchange. 17

19 Subsidiaries Financial Statements The table below represents the main indices of the Subsidiary Companies in the first quarter: R$ million Net Operating Result of Income/ Loss for EBITDA EBITDA Company Revenue Service the period Margin Furnas 1, , % 30.41% Chesf 1, % 59.96% Eletronorte Parent Co (137.41) (26.93) (484.06) (129.72) % 13.58% Consolidated 1, (23.57) (484.06) (129.72) % 13.21% Boa Vista (7.76) (5.62) (4.00) (3.04) (6.80) (6.90) (25.63%) (27.69%) Manaus (80.92) (113.32) (351.03) (119.27) (57.95) (92.20) (29.68%) (48.34%) Eletronuclear (23.94) % 34.55% Eletrosul % 46.11% CGTEE (71.79) (15.97) (70.27) (3.27) (60.75) (4.39) (143.93%) (13.24%) Current Ratio Total Liquidity Ratio (1) Total Debt Ratio (2) Debt Equity Ratio Net Profit Margin (3) Return on Equity Ebitda / Share Furnas Chesf Eletronorte Parent Co ( ) ( ) ( ) ( ) Consolidated ( ) ( ) ( ) ( ) Eletronuclear ( ) ( ) Eletrosul CGTEE ( ) ( ) ( ) ( ) ( ) (1) (Current Assets + Long-term assets) / (Current liabilities + Non-current liabilities) (2) (Current liabilities + Non-current liabilities) / Total assets (3) Net income / Net operational revenues 18

20 Itaipu Balance Sheet for the period ended on March 31 (In US$) Assets Current Assets Cash and banks 173,316, ,238, Accounts receivable Contracts of electricity services rendered 743,020, ,577, Obligations and loans receivable 781, , Debtors 4,124, ,841, Stored materials 7,286, ,396, Advancement to personnel 6,873, ,413, Advancement to suppliers 2,870, ,488, Disposal of assets in course 422, , Collaterals and linked deposits 3,838, , ,534, ,248, Non-Current Assets Accounts receivable Contracts of electricity services rendered 68,482, ,324, Obligations and loans receivable 130,025, ,059, Collaterals and linked deposits 4,696, ,927, ,205, ,311, Results Account Results to compensate from previous periods 2,307,020, ,053,133, Result for the period (209,065,446.43) (74,548,350.62) 2,097,954, ,978,585, Property, plant and equipment 17,536,537, ,522,259, ,536,537, ,522,259, Total Assets 20,780,231, ,485,404,

21 Itaipu Liabilities and Stockholders Equity Current Liabilities Loans and Financing 795,759, ,216, Payable charges in course 15,254, ,013, Remuneration and reimbursement 403,214, ,281, Suppliers 15,089, ,016, Pay roll and social obligation 33,574, ,973, Estimated obligations 91,144, ,346, Other obligations 2,762, ,892, ,356,800, ,298,740, Non-Current Liabilities Loans and financing 18,509,656, ,439,358, Remuneration and reimbursement 3,000, ,253, Estimated obligations 810,774, ,052, ,323,430, ,086,664, Stockholders Equity and Capital Social Capital Eletrobrás 50,000, ,000, Ande 50,000, ,000, ,000, ,000, Total Liabilities and Stockholders Equity 20,780,231, ,485,404,

22 Itaipu Statement of Income for the period ended on March 31 US$ Operating Revenues Power supply Administración Nacional de Electricidad - ANDE 42,722, ,356, Centrais Elétricas Brasileiras S,A, Eletrobrás 757,823, ,945, ,545, ,302, Remuneration on power assignment Centrais Elétricas Brasileiras S,A, Eletrobrás 23,563, ,174, ,563, ,174, Reimbursement of energy in addition to guaranteed energy Centrais Elétricas Brasileiras S,A, Eletrobrás 22,712, ,162, Administración Nacional de Electricidad - ANDE 5,599, ,644, ,312, ,806, Total operating revenues 852,421, ,284, Operating Expenses Remunerations and reimbursements Capital income 10,854, ,252, Reimbursement of charges administration and supervision 7,009, ,534, Reimbursement of charges addition to guarantee 1,736, ,702, Royalties 91,125, ,943, Royalties of energy in addition to guarantee 22,572, ,128, Remuneration for power granted 23,563, ,174, Remuneration of charges addition to guarantee 4,003, ,114, ,866, ,850, Other expenses Personnel 94,988, ,844, Materials and equipment 2,498, ,277, Third party services 8,137, ,803, Other operating expenses 27,388, ,071, Environmental expenses 726, , Social responsibility program 11,437, ,679, ,176, ,071, Total of operating expenses 306,042, ,922, Result of Service 546,379, ,361, Financial Revenues Income from financial applications 3,166, ,053, Arrears on energy bills 3, , Other financial revenues 3,565, ,824, ,735, ,917, Financial Expenses Debt charges 325,472, ,649, Monetary variations 19,572, ,851, Other financial expenses , ,044, ,624, Financial Result (338,309,545.73) (494,707,355.31) Operating Result 208,069, ,654, Non-Operating Revenues (Expenses) Other Revenues 1,254, , Other Expenses (258,312.84) (170,943.11) Non-operating result 995, (105,717.49) Net income for the period 209,065, ,548,

23 Itaipu Cash Flow for the period ended on March 31 (US$) Operating Activities Net income for the period 209,065, ,548, Adjustments 24,372, ,142, Disposal of Assets - sales - 2, Disposal of Assets - result - - Monetary Variation on Estimate Obligations 22,505, ,945, Monetary Variation on Financing and loans 1,867, ,194, Provisions on Liability 357,682, ,417, Financial Charges to be Capitalized - - Financial Charges 325,235, ,649, Estimated Obligations 32,447, ,767, Adjusted Income 591,121, ,107, Variations in the Assets and Liabilities Accounts Receivable Rendering of Services 2,317, (114,201,022.22) Stored Material variation (584,435.27) (76,456.35) Other Credits variation (6,072,294.28) (7,754,222.53) Remuneration and reimbursement variation 19,312, ,419, Suppliers and other variation (22,026,085.58) (9,058,399.63) Payment-roll variation (737,837.71) 2,589, Payment of the Estimated Obligation (2,554,394.35) (24,024,444.34) Net Operating Cash Flow 580,775, ,003, Investment Activities Property, plant and equipment (10,836,270.12) (1,043,647.09) Balance of the Investment Activities (10,836,270.12) (1,043,647.09) Financing Activities Loans and Financing obtained - - Amortization of the Loans and Financing (178,931,265.79) (102,172,632.42) Payment of interest on Loans and Financing (317,221,312.57) (323,347,117.62) Balance of the Financing Activities (496,152,578.36) (425,519,750.04) Total of Cash Effects 73,787, ,439, Cash and cash equivalent beginning of period 99,529, ,798, Cash and cash equivalent end of period 173,316, ,238,

24 Itaipu Market Data Energy generated Installed Guaranteed Energy generated - MWh Plant Capacity - MW Energy - MW Itaipu Binacional 14,000 8,577 23,471,837 Energy sold Purchaser US$ million MWh Ande ,059,429 Eletrobrás ,327,969 Total ,387,398 Losses in generation - % 0.36 Average tariff US$/KW Main investments - US$ million Project Units 9A and 18A 0.1 Plan for conclusion of works 0.4 Loans and Financing US$ million Creditor Balance on 03/31/08 Due Currency Eletrobrás 8, / 2023 US$ Federal Gov t 10, US$ Bco. Brasil-Rescheduled Debt / 2023 US$ Fibra R$ T O T A L 19,320.7 Contract obligations on 03/31/08 US$ million Loans and Financing After , , , ,230 1,009,590 1,074,750 13,944,751 Number of employees 03/31/08 Composition of employees by tenure (years) Up to 5 6 to to to to 25 over 25 Total ,278 Department Own staff Others Total Field Administrative 2, ,339 Total 3, ,278 23

25 Furnas Balance Sheet for the period ended on March 31 (R$ thousand) Assets Current Assets Cash and banks 6,835 7,206 Financial applications 753, ,482 Consumers, concessionaires and affiliates 1,058,746 1,277,849 Provision for credits of questionable liquidation (411,616) (83,074) Financed energy credits 200, ,210 Loans and financing granted 72,971 66,500 Debtors 233, ,790 Provision for credits of questionable liquidation (150,024) (134,284) Dividends to receive - 4,289 Stored materials 100,085 75,332 Tax credits 289, ,601 Taxes and contributions to recover 107, ,729 Collaterals and linked deposits 17,629 21,211 Expenses paid in advance 9,251 12,885 Others 61,218 33,155 2,349,851 2,337,881 Non-Current Assets Consumers, concessionaires and affiliates 20,428 Concessions to bid 19,543 15,681 Loans and financing granted 131, ,480 Financed energy credits 982,349 1,049,230 Collaterals and linked deposits 161, ,095 Assets and rights for sale 28,655 28,937 Expenses paid in advance 2,680 - Others 107,297 96,752 1,433,270 1,600,603 Investments 773, ,021 Property, plant and equipment In service 12,175,938 11,292,423 In course 2,292,139 2,972,402 14,468,077 14,264,825 Deferred ,241,899 14,666,902 16,675,169 16,267,505 Total Assets 19,025,020 18,605,386 24

26 Furnas Liabilities and Stockholders Equity Current Liabilities Suppliers 498, ,827 Charges on loans and financing 43,440 19,549 Complementary pension fund - 142,082 Taxes and social contributions 297, ,946 Loans and financing 632, ,627 Other funding obtained from third parties 249, ,631 Estimated obligations 52,572 48,494 Research and development 114,216 96,002 Provisions for contingencies 280, ,766 Creditors 148,425 6,695 Shareholders remuneration 169,549 93,660 Participation in income 61,689 55,570 Others 96, ,649 2,645,011 2,417,498 Non-Current Liabilities Loans and financing 1,525, ,887 Other funding obtained from third parties 222, ,661 Taxes and social contributions 1,103, ,964 Complementary pension fund - 917,077 Creditors 35,009 - Others 2 1 2,885,368 3,097,590 Stockholders Equity Capital 3,194,000 3,194,000 Capital Reserves 5,700,817 5,700,817 Income Reserves 2,162,935 1,651,712 Accrued income 2,342,802 2,342,802 Result for the period 62, ,813 Resources for capital increase 31,154 31,154 13,494,641 13,090,298 16,380,009 16,187,888 Total Liabilities and Stockholders Equity 19,025,020 18,605,386 25

27 Furnas Statement of Income for the period ended on March 31 (R$ thousand) Operating Revenue Supply of electric energy 52,971 42,470 Gross supply of electric energy 956, ,660 Short-term energy - 5,810 Use of electric grid 465, ,434 Other revenues 6,285 3,733 1,481,197 1,456,107 Deductions to Operating Revenue Taxes and contributions on revenue 62,397 56,420 Global Reversion Reserve 40,703 39,889 Research and development 13,684 13,197 Net Operating Revenue 8,236 11, , ,080 Net operating revenues 1,356,177 1,335,027 Operating Expenses Personnel 138, ,072 Material 9,675 8,288 Third party services 97, ,715 Fuel and water for production of electric energy 35,531 6 Financial compensation for the use of hydro resources 35,930 42,183 Electric Energy purchased for resale 563, ,282 Charge on the use of Electric grid 93,276 92,538 Provision for credits of questionable liquidation - 12,554 Provisions for contingencies 50,000 30,000 Provision for credits of questionable liquidation - reversion (28,672) - Supervision tax for electric energy services 3,592 3,479 Depreciation and amortization 140, ,327 Rightoff of credits 27,063 - Other expenses 37,330 31,908 1,203,242 1,061,352 Service Result 152, ,675 Financing Revenue (expense) Income from financial applications 9,317 9,767 Charges on loans and financing (38,921) (27,424) Debt charges - FRG (40,899) (27,536) Special instalment PAES (Lei /2003) (7,865) (16,232) Monetary variation and arrears energy sold 1,230 1,808 Right to generator reimbursement monetary updating 12,160 12,151 Monetary variation and arrears energy purchased 3 11 Currency and monetary variation financing and loans (39,907) (13,280) Var. mon. s/refinanciamentos de créditos e empréstimos concedidos 41,358 13,172 Other monetary variation - asset 1,727 (957) Other monetary variation - liabilities (2,026) (1,997) Interes on credits and loans renegotiable 36,529 39,113 Other financing revenue 2,988 8,859 Other financing expenses (25,066) (13,766) (49,372) (16,311) Operating Result 103, ,364 Non-Operating Revenue 478 1,201 Non-Operating Expense (1,219) (1,234) Non-Operating Result (741) (33) Result before Taxes 102, ,331 Social Contribution (9,743) (23,168) Income tax (30,146) (64,350) Net Result for the period 62, ,813 26

28 Furnas Cash Flow for the period ended on March 31 (R$ thousand) Operating Activities Net income for the period 62, ,813 Expenses (revenues) not affecting net working capital Depreciation and amortization 140, ,327 Long-term monetary and currency variation 18,269 6,630 Interest on special installment PAES 7,865 16,232 Complementary pension fund adjustment - FRG (21,655) 145, ,189 Variation in current assets Consumers, concessionaires and affiliates 8,927 (1,548) Stored materials (12,966) (2,381) Taxes and contributions to compensate (10,930) (35,560) Loans granted (22,461) 14,256 Other operating assets 2,585 18,385 (34,845) (6,848) Variation in current liabilities Suppliers (155,462) (216,548) Payment-roll (1,264) (6,622) Taxes and social contributions 56,423 99,026 Creditors 1,773 2,858 Research & development 7,564 8,895 Provision for contingencies 50,374 28,753 Consumer charges 9,072 (9,488) Other operating liabilities (1,088) (11,213) (32,608) (104,339) 140, ,815 Investment Activities Applications in property, plant and equipment (191,054) (161,810) In research & development (3,026) (2,329) Others (27,758) (27,494) (221,838) (191,633) Financing Activities Long-term loans and financing obtained 589,653 79,476 Other funding from third parties (56,482) (84,641) Non-current liabilities transferred to current 152, ,415 Current assets transferred to non-current assets (150,345) (191,560) Refinancing of credits (21,659) (13,939) Interest on own capital 3,658 2,079 Others 8,202 4, ,388 (96,856) Total of cash effects 444,304 (74,674) Cash and cash equivalent beginning of period 316, ,362 Cash and cash equivalent end of period 760, ,688 Cash variation 444,304 (74,674) 27