Centrais Elétricas de Santa Catarina S.A. Quarterly information (ITR) at September 30, 2013 and report on review of quarterly information

Transcription

1 Centrais Elétricas de Santa Catarina S.A. Quarterly information (ITR) at September 30, 2013 and report on review of quarterly information

2 Report on review of quarterly information To the Board of Directors, Officers and Stockholders Centrais Elétricas de Santa Catarina S.A. Florianópolis - SC Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Centrais Elétricas de Santa Catarina S.A. ("Company"), included in the Quarterly Information Form (ITR) for the quarter ended September 30, 2013, comprising the balance sheet as at that date and the statements of operations and comprehensive income (loss) for the quarter and nine-month period then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation of the parent company interim accounting information in accordance with the accounting standard CPC 21(R1), Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and of the consolidated interim accounting information in accordance with CPC 21(R1) and International Accounting Standard (IAS) 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the parent company interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21(R1) applicable to the 2

3 Centrais Elétricas de Santa Catarina S.A. preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Conclusion on the consolidated interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Emphasis of matter Restatement of amounts As mentioned in Note 2.4, because of a change in the accounting policy resulting from the approval of the Technical Pronouncement CPC 33(R1) - Employee Benefits, CPC 18(R2) - Investments in Associated and Subsidiary Companies and Jointly-controlled Entities, and CPC 19(R2) - Joint Ventures, the parent company and consolidated amounts related to the balance sheet for the year ended December 31, 2012 and the interim accounting information of the statement of operations for the quarter and nine-month period ended September 30, 2012 and the statements of changes in equity, cash flows and value added (supplementary information) for the nine-month period ended September 30, 2012, presented for comparison purposes, were adjusted and are being restated as provided for by CPC 23 - Accounting Policies, Changes in Accounting Estimates and Correction of Errors and CPC 26(R1) - Presentation of Financial Statements. Our conclusion is unmodified in respect of this matter. Other matters Statement of value added We have also reviewed the parent company and consolidated statements of value added for the ninemonth period ended September 30, These statements are the responsibility of the Company's management and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the parent company and consolidated interim accounting information taken as a whole. Florianópolis, November 7, 2013 KPMG Auditores Independentes CRC SC /F-8 Claudio Henrique Damasceno Reis Accountant CRC SC /O-1 3

4 Registration Form Version: 3 Contents Information General information 1 Address 2 Auditor 3 Share registrar 4 Investor relations officer or equivalent 5 Stockholders' department 6

5 Registration Form Version: 3 1. General information Corporate name Date of adoption of the corporate name Type Publicly-held corporation Previous corporate name Date of constitution 12/9/1955 National Corporate Taxpayers' Registry (CNPJ) Brazilian Securities Commission (CVM) code / CVM registration date 3/26/1973 CVM registration status Active Date of effectiveness of status 3/26/1973 Home country Country in which the securities are held in custody Brazil Brazil Other countries in which the securities can be traded Country Date of constitution United States 9/21/1994 Activity sector Description of activities Issuer category Date of registration in the current category Issuer status Electric Energy Sector Holding Company in the Electric Energy Sector Category A 1/1/2010 Operating Date of effectiveness of status 3/26/1973 Type of ownership control State-owned Holding Company Date of last change in ownership control Date of last change in the fiscal year Month/day of the end of 12/31 the fiscal year Issuer's website on the Internet Newspapers in which the issuer Name of newspapers in which the issuer discloses its information State discloses its information Valor Econômico SP Diário Catarinense Diário Oficial do Estado (State Official Gazette) SC SC

6 Registration Form Version: 3 2. Address Mail address Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP , Telephone: (5548) , Fax: (5548) , ri@celesc.com.br Headquarters' address Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP , Telephone: (5548) , Fax: (5548) , ri@celesc.com.br

7 Registration Form Version: 3 4. Auditor Does the Issuer have an auditor? YES CVM code Type of auditor Brazilian firm Name/Corporate name KPMG Auditores Independentes Individual Taxpayers' Registration Number (CPF)/ National Corporate Taxpayers' Registry (CNPJ) / Period of services 4/4/2011 Partner responsible Period of services CPF Claudio Henrique Damasceno Reis 4/4/

8 Registration Form Version: 3 5. Share registrar Does the Company have a service provider? Corporate name YES Itaú Corretora de Valores S.A. CNPJ / Period of services 12/5/2005 Service address Avenida Eng o Armando de Arruda Pereira, 707, Jabaquara, São Paulo, SP, Brasil, CEP , Telephone:(5548) , Fax:(5548) , marcio.conde-souza@itau.com.br

9 Registration Form Version: 3 6. Investor relations officer or equivalent Name José Carlos Oneda Investor Relations Officer CPF/CNPJ Mail address Date when the person assumed the position Rua Emiliano Ramos no. 576, Apto 403, Centro, Lages, SC, Brasil, CEP , Telephone (48) , Fax (48) , ri@celesc.com.br 7/1/2013 Date when the person left the position Name André Luiz de Rezende Investor Relations Officer CPF/CNPJ Mail address Date when the person assumed the position Date when the person left the position Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP , Telephone (5548) , Fax (5548) , arezende@celesc.com.br 1/10/2011 6/30/2013

10 Registration Form Version: 3 7. Stockholders' department CONTACT Date when the person assumed the position Gilberto Onezino de Farias 3/1/1993 Date when the person left the position Mail address Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP , Telephone (5548) , Fax (5548) , ri@celesc.com.br 6 of 6

11 Quarterly information (ITR) - 9/30/ Version: 1 Contents Company information Capital composition 1 Parent company financial statements Balance sheet - assets 2 Balance sheet - liabilities and equity 3 Statement of operations 4 Statement of comprehensive income (loss) 5 Statement of cash flows - indirect method 6 Statement of changes in equity 1/1/2013 to 9/30/ /1/2012 to 9/30/ Statement of value added 9 Consolidated financial statements Balance sheet - assets 10 Balance sheet - liabilities and equity 11 Statement of operations 12 Statement of comprehensive income (loss) 13 Statement of cash flows - indirect method 14 Statement of changes in equity 1/1/2013 to 9/30/ /1/2012 to 9/30/ Statement of value added 17 Comments on company performance Other information considered relevant by the Company 89 Reports Report on review of quarterly information - without exceptions 94 Officers' statement on the financial statements 96 Officers' statement on the independent auditor's report 97

12 Quarterly information (ITR) - 9/30/ Version: 1 Company information / Capital composition Number of shares Current quarter (In thousands) 9/30/2013 Paid-up capital Common shares 15,527 Preferred shares 23,044 Total 38,571 Treasury shares Common shares 0 Preferred shares 0 Total 0 Page 1 of 97

13 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/balance sheet - assets (R$ thousand) 1 - Code 2 - Description Current quarter 9/30/2013 Prior year 12/31/ Total assets 1,938,606 1,789, Current assets 36,406 41, Cash and cash equivalents 26,018 37, Taxes recoverable 2,613 2, Current taxes recoverable 2,613 2, Other current assets 7,775 1, Other 7,775 1, Dividends receivable 1,037 1, Other receivables 6, Non-current assets 1,902,200 1,748, Long-term receivables 109, , Financial investments measured at fair value 55,198 55, Trading securities 54,981 54, Available-for-sale securities Deferred taxes 23,864 23, Deferred income tax and social contribution 23,864 23, Receivables from related parties 20,368 36, Receivables from controlling stockholders 4,262 4, Receivables from other related parties 16,106 32, Other non-current assets 9,611 8, Judicial deposits 9,611 8, Investments 1,784,619 1,615, Equity investments 1,784,619 1,615, Investments in associates 29,419 32, Investments in subsidiaries 1,636,746 1,467, Investments in jointly-controlled subsidiaries 118, , Property, plant and equipment Property, plant and equipment in use Intangible assets 8,478 8, Intangible assets 8,478 8, Concession agreement 8,478 8,523 Page 2 of 97

14 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/balance sheet - liabilities and equity (R$ thousand) 1 - Code 2 - Description Current quarter 9/30/2013 Prior year 12/31/ Total liabilities 1,938,606 1,789, Current liabilities 3,468 4, Social and labor obligations Social obligations Social charges Trade payables 1,392 1, Domestic trade payables 1,392 1, Tax obligations 543 1, Federal tax obligations 543 1, Other federal tax obligations 543 1, Other obligations Other Dividends and interest on capital payable Other current liabilities Employee benefit obligations Non-current liabilities 7,890 7, Other obligations Other Federal tax obligations Provisions 7,890 7, Tax, social security, labor and civil provisions 1,263 1, Tax provisions 1,263 1, Other provisions 6,627 6, Regulatory provisions 6,627 6, Equity 1,927,248 1,777, Paid-up share capital 1,017,700 1,017, Capital reserves Advance for future capital increase Revenue reserves 740, , Legal reserve 102, , Profit retention reserve 637, , Retained earnings 173, Carrying value adjustments -4,475 19,114 Page 3 of 97

15 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/statement of operations (R$ thousand) Current quarter 7/1/2013 to 9/30/2013 Accumulated - current year 1/1/2013 to 9/30/2013 Same quarter of prior year 7/1/2012 to 9/30/2012 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 3.04 Operating income/expenses 211, , , , General and administrative expenses -7,818-25,515-7,209-16, Equity in the results of investees 219, , , , Profit (loss) before finance result and taxes 211, , , , Finance result 1,090 2,786 1,529 6, Finance income 1,484 3,946 1,912 7, Finance costs , , Profit (loss) before taxation 212, , , , Income tax and social contribution 0 0-2,501-2, Deferred 0 0-2,501-2, Net profit (loss) from continuing operations 212, , , , Profit (loss) for the period 212, , , , Earnings (loss) per share (reais/share) Basic earnings (loss) per share Common shares Preferred shares Diluted earnings (loss) per share Registered common shares Registered preferred shares Page 4 of 97

16 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/statement of comprehensive income (loss) (R$ thousand) Current quarter 7/1/2013 to 9/30/2013 Accumulated - current year 1/1/2013 to 9/30/2013 Same quarter of prior year 7/1/2012 to 9/30/2012 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 4.01 Profit (loss) for the period 212, , , , Comprehensive income (loss) for the period 212, , , ,461 Page 5 of 97

17 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/statement of cash flows - indirect method (R$ thousand) Accumulated - current year 1/1/2013 to 9/30/2013 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 6.01 Net cash used in operating activities -16,847-14, Cash provided by operations -23,519-13, Profit (loss) before taxation 149, , Depreciation and amortization 1,146 1, Equity in the results of investees -172, , Interest and indexation expenses -1,936-4, Changes in assets and liabilities 6, Trade receivables Other assets Trade payables 8,508 1, Salaries and payroll charges Taxes payable -1,264-1, Judicial deposits Other liabilities Net cash provided by (used in) investing activities -13,042 71, Purchases of property, plant and equipment and intangible assets Capital increase in subsidiaries -14,000-8, Related parties -15, Dividends received 16,258 79, Net cash provided by (used in) financing activities 18,038-59, Related parties 18,040 18, Dividends paid -2-77, Decrease in cash and cash equivalents -11,851-1, Opening balance of cash and cash equivalents 37,869 37, Closing balance of cash and cash equivalents 26,018 36,317 Page 6 of 97

18 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/statement of changes in equity - 1/1/2013 to 9/30/2013 (R$ thousand) Capital reserves, stock options and treasury stock Other comprehensive income (loss) 1 - Code 2 - Description Paid-up share capital Revenue reserves Retained earnings Equity 5.01 Opening balances 1,017, , ,114 1,777, Adjusted opening balances 1,017, , ,114 1,777, Total comprehensive income (loss) ,504-23, , Profit for the period , , Reclassifications to the result ,951-23, Realization of deemed cost ,951-23, Closing balances 1,017, , ,504-4,475 1,927,248 Page 7 of 97

19 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/statement of changes in equity - 1/1/2012 to 9/30/2012 (R$ thousand) Capital reserves, stock options and treasury stock Retained earnings (accumulated deficit) Other comprehensive income (loss) 1 - Code 2 - Description Paid-up share capital Revenue reserves Equity 5.01 Opening balances 1,017, ,016, ,295 2,284, Adjusted opening balances 1,017, ,016, ,295 2,284, Equity transactions with partners , , Dividends , , Total comprehensive loss ,509-1, , Loss for the period , , Reclassifications to the result ,952-1, Realization of deemed cost ,952-1, Closing balances 1,017, ,001, , ,343 2,146,244 Page 8 of 97

20 Quarterly information (ITR) - 9/30/ Version: 1 Parent company financial statements/statement of value added (R$ thousand) Accumulated - current year 1/1/2013 to 9/30/2013 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 7.02 Inputs acquired from third parties -6, Materials, electricity, outsourced services and other -6, Gross value added -6, Retentions -1,146-1, Depreciation, amortization and depletion -1,146-1, Net value added generated -7,419-1, Value added received through transfer 176, , Equity in the results of investees 172, , Finance income 3,946 7, Total value added for distribution 168, , Distribution of value added 168, , Personnel 18,946 15, Direct remuneration 18,946 15, Taxes and contributions 247 2, Federal taxes 247 2, Remuneration of third-party capital Interest Rentals Remuneration of own capital 149, , Retained earnings (accumulated deficit) for the period 149, ,461 Page 9 of 97

21 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/balance sheet - assets (R$ thousand) 1 - Code 2 - Description Current quarter 9/30/2013 Prior year 12/31/ Total assets 5,665,366 5,343, Current assets 1,682,103 1,312, Cash and cash equivalents 851, , Financial investments 0 16, Financial investments measured at fair value 0 16, Trading securities 0 16, Receivables 687, , Trade receivables 555, , Trade receivables 907,038 1,219, Provision for impairment of trade receivables -351, , Other receivables 132, , Inventories 12,371 14, Taxes recoverable 79,083 92, Current taxes recoverable 79,083 92, Other current assets 51,734 25, Other 51,734 25, Dividends receivable 1,037 1, Other receivables 50,697 24, Non-current assets 3,983,263 4,031, Long-term receivables 3,270,806 3,232, Financial investments measured at fair value 55,198 55, Trading securities 54,981 54, Available-for-sale securities Receivables 9, , Trade receivables 6, , Other receivables 2,581 2, Deferred taxes 459, , Deferred income tax and social contribution 459, , Receivables from related parties 20,368 36, Receivables from controlling stockholders 4,262 4, Receivables from other related parties 16,106 32, Other non-current assets 2,726,688 2,544, Taxes recoverable 23,527 14, Judicial deposits 131, , Indemnifiable assets - concession 2,571,447 2,390, Investments 181, , Equity investments 181, , Investments in associates 62,558 52, Other equity investments 118, , Property, plant and equipment 249, , Intangible assets 282, , Intangible assets 282, , Concession agreement 269, , Other intangible assets 12,873 11,244 Page 10 of 97

22 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/balance sheet - liabilities and equity (R$ thousand) 1 - Code 2 - Description Current quarter 9/30/2013 Prior year 12/31/ Total liabilities 5,665,366 5,343, Current liabilities 1,248,797 1,305, Social and labor obligations 122, , Social obligations 122, , Trade payables 447, , Domestic trade payables 447, , Tax obligations 114,675 89, Federal tax obligations 62,395 44, Income tax and social contribution payable 42,332 10, Social Integration Program (PIS)/ Social Contribution on Revenues (COFINS) 12,255 22, Other 7,808 11, State tax obligations 51,895 45, Local tax obligations Borrowings 213,533 81, Borrowings 203,464 81, In local currency 203,464 81, Debentures 10, Other obligations 171, , Liabilities - related parties 9,776 14, Debts with other related parties 9,776 14, Other 161, , Dividends and interest on capital payable Regulatory charges 72, , Other current liabilities 88,845 47, Provisions 178, , Tax, social security, labor and civil provisions 178, , Provisions for employee benefits 178, , Non-current liabilities 2,489,321 2,260, Borrowings 519, , Borrowings 220, , In local currency 220, , Debentures 298, Other obligations 223, , Other 223, , Federal tax obligations Regulatory charges 221, , Other non-current liabilities 2,475 2, Deferred taxes 23,248 28, Deferred income tax and social contribution 23,248 28, Provisions 1,723,033 1,783, Tax, social security, labor and civil provisions 1,678,220 1,747, Tax provisions 29,522 29, Social security and labor provisions 72,760 44, Provisions for employee benefits 1,234,808 1,356, Civil provisions 341, , Other provisions 44,813 35, Regulatory provisions 44,813 35, Consolidated equity 1,927,248 1,777, Paid-up share capital 1,017,700 1,017, Capital reserves Advance for future capital increase Revenue reserves 740, , Legal reserve 102, , Profit retention reserves 637, , Retained earnings 173, Carrying value adjustments -4,475 19,114 Page 11 of 97

23 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/statement of operations (R$ thousand, unless otherwise stated) Current quarter 7/1/2013 to 9/30/2013 Accumulated - current year 1/1/2013 to 9/30/2013 Same quarter of prior year 7/1/2012 to 9/30/2012 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 3.01 Revenue from sales of goods and/or services 1,189,349 3,556,030 1,012,300 3,123, Revenue from sales and/or services 1,113,040 3,356, ,691 2,908, Construction revenue 76, ,306 70, , Cost of goods and/or services sold -989,153-2,859, ,959-2,744, Cost of sales and/or services -912,844-2,660, ,350-2,529, Construction cost -76, ,306-70, , Gross profit 200, , , , Operating expenses -148, , , , Selling expenses -74, ,996-34, , General and administrative expenses -67, , , , Other operating expenses -10,808-94,034 33,685-3, Equity in the results of investees 5,096 17,402 3,750 13, Profit (loss) before finance result and taxes 52, , , , Finance result 15,407 44,669 15,340 39, Finance income 53, ,767 28,501 94, Finance costs -37,625-81,098-13,161-55, Profit (loss) before taxation 67, , , , Income tax and social contribution 144,894-70,208 53,503 46, Current -36,909-40, , Deferred 181,803-29,874 53,750 53, Net profit (loss) from continuing operations 212, , , , Consolidated profit (loss) for the period 212, , , , Attributable to the owners of the parent 212, , , , Earnings (loss) per share (reais/share) Basic earnings (loss) per share Registered common shares Registered preferred shares Diluted earnings (loss) per share Registered common shares Registered preferred shares Page 12 of 97

24 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/statement of comprehensive income (loss) (R$ thousand, unless otherwise stated) Current quarter 7/1/2013 to 9/30/2013 Accumulated - current year 1/1/2013 to 9/30/2013 Same quarter of prior year 7/1/2012 to 9/30/2012 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 4.01 Consolidated profit (loss) for the period 212, , , , Consolidated comprehensive income (loss) for the period 212, , , , Attributable to the owners of the parent 212, , , ,461 Page 13 of 97

25 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/statement of cash flows - indirect method (R$ thousand) Accumulated - current year 1/1/2013 to 9/30/2013 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 6.01 Net cash provided by operating activities 468, , Cash provided by (used in) operations 482,557-6, Profit before taxation 219, , Depreciation and amortization 155, , Gain on disposals of property, plant and equipment and intangible assets 31,661 66, Equity in the results of investees -17,402-13, Unrealized income from investments and interest receivable 0-1, Interest and indexation expenses 34,695 14, Constitution or reversal of provisions -21, Income tax (IRPJ) and social contribution (CSLL) paid -8,923-24, Provision for impairment of trade receivables 13,701 29, Interest paid -24,005-16, Contingencies 61,580-54, Restatement of financial assets (VNR) -37, Actuarial expenses 74,130 41, Changes in assets and liabilities -14, , Trade receivables 382,930-1, Other assets -26,554-3, Judicial deposits 7,909 11, Trade payables -256,054 29, Salaries and payroll charges 7,471 22, Taxes payable -6,502-34, Regulatory charges -17,934 17, Taxes recoverable 3,543-1, Other changes in assets and liabilities 36,631 16, Inventories 2,388 3, Employee benefit obligations -147, , Net cash used in investing activities -189, , Purchases of property, plant and equipment and intangible assets -209, , Dividends received 16,258 6, Acquisition of ownership interest -12,545-4, Investment fund redemption 16, Net cash provided by (used in) financing activities 399, , Related parties 18,040 18, Repayment of borrowings -248, , New borrowings 332,052 86, Dividends paid -2-77, Debentures 300, Fund raising cost of debentures -2, Increase (decrease) in cash and cash equivalents 678, , Opening balance of cash and cash equivalents 172, , Closing balance of cash and cash equivalents 851, ,298 Page 14 of 97

26 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/statement of changes in equity - 1/1/2013 to 9/30/2013 (R$ thousand) Paid-up share capital Capital reserves, stock options and treasury stock Other comprehensive income (loss) Noncontrolling interests Revenue Retained Consolidated 1 - Code 2 - Description reserves earnings Equity equity 5.01 Opening balances 1,017, , ,114 1,777, ,777, Adjusted opening balances 1,017, , ,114 1,777, ,777, Total comprehensive income (loss) ,504-23, , , Profit for the period , , , Reclassification to the result ,951-23, Realization of deemed cost ,951-23, Closing balances 1,017, , ,504-4,475 1,927, ,927,248 Page 15 of 97

27 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/statement of changes in equity - 1/1/2012 to 9/30/2012 (R$ thousand) Capital reserves, stock options and treasury stock Retained earnings (accumulated deficit) Other comprehensive income (loss) Noncontrolling interests 1 - Code 2 - Description Paid-up share capital Revenue reserves Equity Consolidated equity 5.01 Opening balances 1,017, ,016, ,295 2,284, ,284, Adjusted opening balances 1,017, ,016, ,295 2,284, ,284, Equity transactions with partners , , , Dividends , , , Total comprehensive loss ,509-1, , , Loss for the period , , , Reclassification to the result ,952-1, Realization of deemed cost ,952-1, Closing balances 1,017, ,001, , ,343 2,146, ,146,244 Page 16 of 97

28 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated financial statements/statement of value added (R$ thousand) Accumulated - current year 1/1/2013 to 9/30/2013 Accumulated - prior year 1/1/2012 to 9/30/ Code 2 - Description 7.01 Revenue 4,913,145 4,976, Sales of goods, products and services 4,727,540 4,795, Revenues related to the construction of own assets 199, , Constitution/reversal of provision for impairment of trade receivables -13,701-33, Inputs acquired from third parties -2,804,428-2,483, Costs of goods, products and services sold -2,319,430-2,196, Materials, electricity, outsourced services and other -285,692-71, Other -199, , Costs related to the construction of fixed assets -199, , Gross value added 2,108,717 2,493, Retentions -134, , Depreciation, amortization and depletion -155, , Other 21, Provision for losses 21, Net value added generated by the entity 1,973,966 2,373, Value added received through transfer 143, , Equity in the results of investees 17,402 13, Finance income 125,767 94, Total value added to distribute 2,117,135 2,481, Distribution of value added 2,117,135 2,481, Personnel 424, , Taxes and contributions 1,453,014 1,854, Remuneration of third-party capital 89,869 60, Interest 79,952 54, Rentals 9,917 6, Remuneration of own capital 149, , Retained earnings (accumulated deficit) for the period 149, ,461 Page 17 of 97

29 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance 1. Investments The investments made by the Centrais Elétricas de Santa Catarina (Celesc) Group in property, plant and equipment, intangible assets and interests in Small Hydroelectric Plants (SHPs) up to the third quarter of 2013 amounted to R$ million, which was 2.07% lower than the level of investment in the same period of the prior year (R$ million), as presented in the table below: 9/30/2013 9/30/2012 Horizontal Investment R$ % R$ % analysis Distribution of electric energy 222, , Generation of electric energy 25, , Total 247, , Share market At the close of the third quarter of 2013, the Company's preferred shares (CLSC4) presented a decrease of 15.20%, whereas its common shares (CLSC3) presented an increase of 2.56% in the same period. The São Paulo Stock Exchange (Bovespa) Index (IBOVESPA) increased by 10.29% and the Electric Energy Industry Index (IEE) increase by 6.42% in the quarter. The table below presents the final quoted share prices as at September 30, 2013 and the respective variations, in percentage terms, of Celesc's shares, as well as of the main market indicators: Performance * Variation % As at 9/30/2013 3Q13 9M13 Celesc PN R$ % % Celesc ON R$ % 8.11% IBOVESPA 52, % % IEE 27, % -6.10% Source: DEF/DPRI *quotations without adjustment to yield Page 18 of 97

30 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance 3. Market value of the share The market values of Celesc's shares as at September 30, 2013, according to the table above, were as follows: R$ for each registered common share (ON) and R$ for each registered preferred share (PN). Its majority stockholder is the state of Santa Catarina, which owns 50.2% of the common shares of the Company, corresponding to 20.2% of total capital. The shareholding and ownership structure of Celesc at September 30, 2013 is presented below: Corporate Structure Government SC Previ Eletrobrás CELOS PLUS Tarpon Geração LPar Poland Fia Other 50.2% O 33.1 % O 0.0 % O 8.6 % O 0.0 % O 1.6 % O 0.0 % O 6.4 % O 0.0% P 1.9 % P 18.0 % P 1.0 % P 22.5 % P 10.7 % P 12.3 % P 33.7 % P 20.2% T 14.5 % T 10.8 % T 4.0 % T 13.4 % T 7.0 % T 7.3 % T 22.7 % T FREE FLOAT 76.1% 51.0% O 0.0% P Key O Common P Preferred T Total 15.5% O 15.5% P September % T 100.0% T 17.0% T 30.9% T 23.0% T 40.0% T 15.5% T Celesc Distribuição Celesc Geração SCGás ECTE D. Francisca Cubatão Casan Source: DEF/DPRI 4. Human resources At the end of the third quarter of 2013, the Celesc Group had 2,964 employees. The total number of employees decreased by 18.48% in relation to the same period of the prior year (3,636 employees), as a result of the termination of employees under the Voluntary Termination Program (PDV). 5. Energy consumption In the third quarter of 2013, the electric energy supplied by Celesc D to the captive market grew 2.9% in comparison with the same period of the prior year, reaching 3,994 GWh. In relation to the total market (including free consumers), there was a growth of 4.4%, attaining 5,422 GWh. Page 19 of 97

31 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance 4.4% 2.9% 5,420 5,193 3,881 3, % 8.1% 8.8% 1.6% 4.4% 1,313 1,428 1,112 1,202 1,161 1, % Residential Industrial Commercial Rural Other Classes¹ Free Market Captive Market Total Market 3T12 3T13 Source: DCL/DPCM/DVME Note: Other Classes¹ = Government + Public lighting + Utilities + Resale. Own consumption is not considered. 6. Electric energy market Vertical Variation Horizontal Variation 3Q13 3Q12 3Q13 3Q Description quarter quarter quarter quarter quarter Sales revenue by consumer class in thousands of reais (net of ICMS) Residential 360, , % 34.3% -1.2% Industrial 293, , % 29.7% -7.2% Commercial 215, , % 21.4% -5.3% Rural 51,467 53, % 5.0% -3.2% Government 34,906 35, % 3.4% -2.8% Public lighting 21,583 22, % 2.1% -2.9% Utilities 16,582 17, % 1.6% -4.7% Subtotal 993,746 1,037, % 97.5% -4.2% Supply 27,379 26, % 2.5% 3.0% TOTAL 1,021,125 1,063, % 100% -4.0% Consumption by consumer class in MWh Residential 1,201,969 1,111, % 28.6% 8.1% Industrial 1,135,511 1,160, % 29.9% -2.2% Commercial 747, , % 19.0% 1.6% Rural 282, , % 7.1% 2.9% Government 93,514 90, % 2.3% 3.8% Public lighting 136, , % 3.5% 1.4% Utilities 73,814 71, % 1.8% 3.0% Subtotal 3,670,886 3,578, % 92.2% 2.6% Supply 320, , % 7.8% 6.2% TOTAL 3,991,536 3,880, % 100% 2.9% Page 20 of 97

32 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance Vertical Horizontal Variation Variation 3Q13 3Q12 3Q13 3Q Description quarter quarter quarter quarter quarter Average unit price per MWh (in reais) Residential % 122.7% -8.6% Industrial % 101.9% -5.2% Commercial % 115.9% -6.7% Rural % 72.5% -6.0% Government % 149.1% -6.3% Public lighting % 61.9% -4.2% Utilities % 90.9% -7.6% Subtotal % 108.4% -6.6% Supply % 32.9% -3.0% TOTAL % 100% -6.8% Source: DCL 7. Economic and financial performance At September 30, 2013, the Company's profit for the third quarter of 2013 was R$ million, which represents an increase of % in relation to the same period of 2012 (net loss of R$ million). The table below presents, through the main economic indicators, the Company's consolidated performance for the period ended September 30, 2013, compared to the same period of the prior year: Economic and Financial Data September 30, 2013 September 30, 2012 HA Gross operating revenue 4,926,846 5,010, % Net Operating Revenue (NOR) 3,556,030 3,123, % Result from Activities 175,092 (208,721) % EBITDA 329,738 (89,370) % EBITDA Margin (EBITDA/NOR) 9.27% -2.86% p.p. Net Margin (Profit/NOR) 4.21% -3.92% 8.13 p.p. Finance result 44,669 39, % Total assets 5,665,366 5,066, % Property, plant and equipment 249, , % Equity 1,927,248 2,146, % Profit/Loss 149,553 (122,461) % p.p. - Percentage Points At the end of the third quarter of 2013, the Celesc Group's Gross Operating Revenue was R$ 4,926.8 million, which represents a decrease of 1.67% in relation to 2012 (R$ 5,010.5 million), and the Net Operating Revenue was R$ 3,556.0 million, which represents an increase of 13.86% in relation to the same period of 2012 (R$ 3,123.2 million). Page 21 of 97

33 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance In the third quarter of 2013, EBITDA reached R$ million and the EBITDA Margin increased from -2.86% in the third quarter of 2012 to 9.27% in Changes in Earnings/Losses before Interest, Taxes and Depreciation/Amortization (EBITDA) are as follows: EBITDA Reconciliation - R$ THOUSAND September 30, 2013 September 30, 2012 Profit/Loss 149,553 (122,461) Current and deferred IR and CSLL 70,208 (46,688) Finance costs (44,669) (39,572) Depreciation and amortization 154, ,351 EBITDA 329,738 (89,373) 8. Ownership control The Company's subscribed and paid-up share capital is R$ 1,017.7 million, represented by 38,571,591 shares with no par value, divided into 15,527,137 registered common shares (40.26%) with voting rights and 23,044,454 registered preferred shares (59.74%). Preferred shares have priority in the payment of non-cumulative dividends of 25%. The Company's shareholding structure, in terms of the number of shares held by the stockholders with more than 5% of any share type or class, is as follows: Shareholding base as at 9/30/2013 Stockholder Common shares Preferred shares Total Number % Number % Number % Government of the State of Santa 7,791, ,791, Catarina PREVI 5,140, , ,578, Celos 1,333, , ,564, Geração Futuro investment fund 257, ,453, ,711, Centrais Elétricas Brasileiras - Eletrobras* 4, ,142, ,147, Tarpon Investment Fund - - 5,177, ,177, MCAP Poland FIA - - 2,828, ,828, Other 999, ,772, ,772, Total 15,527, ,044, ,571, Share capital: R$ 1,017,700, Authorized capital: R$ 1,340,000, Listed Company Source: DEF/DPRI Page 22 of 97

34 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance 9. Foreign shareholdings As at the end of the third quarter of 2013, foreign investors held 20.35% of the Company's total share capital, represented by 7,849,370 shares, the majority of which were preferred shares. Shareholdings by domicile Number of shares % Foreign investors 7,849, Local investors 30,722, Source: DEF/DPRI 10. Shares held by the controlling stockholder, management and members of the Statutory Audit Committee The Company is subject to the arbitration of the Market Arbitration Chamber pursuant to an arbitration clause in its bylaws. Stockholder Common shares Preferred shares Total Number % Number % Number % Controlling stockholder 9,223, , ,457, Board of Directors Executive Board Statutory Audit Committee Treasury shares Other stockholders 6,303, ,810, ,114, Total 15,527, ,044, ,571, Source: DEF/DPRI 11. Outstanding shares Description Registered common shares - CLSC3 Registered preferred shares - CLSC4 Total Number % Number % Number % Total capital 15,527, ,044, ,571, Outstanding shares 6,303, ,810, ,114, Source: DEF/DPRI 12. Arbitration clause The Company declares that it is subject to the arbitration of the Market Arbitration Chamber, pursuant to an Arbitration Clause in Article 67 of its bylaws, which reads: "The Company, its stockholders, managers and members of the Statutory Audit Committee agree to resolve, through arbitration before the Market Arbitration Chamber, any and all Page 23 of 97

35 Quarterly information (ITR) - 9/30/ Version: 1 Centrais Elétricas de Santa Catarina S.A. Comments on company performance disputes or controversies that could arise between them relating to, or resulting from, the application, validity, effectiveness, interpretation, breach and its effects, of the provisions of Brazilian Corporation Law, the Company's bylaws, the standards issued by the National Monetary Council (CMN), the Brazilian Central Bank (BACEN) and the Brazilian Securities Commission (CVM), as well as of the other rules applicable to the operation of the capital markets in general, besides those contained in the Regulations of Corporate Governance Level 2, the Agreement for Participation in Corporate Governance Level 2, and the Penalty and Arbitration Regulations of the Market Arbitration Chamber". 13. Independent auditors In accordance with the provisions of CVM Instruction 381, of January 14, 2003, ratified by Official Letter/CVM/SEP/SNC 02, of March 20, 2003, the Company informs that its independent auditors did not provide any type of service other than those strictly related to external audit activities. Florianópolis, November 14, The Management Page 24 of 97

36 Quarterly information (ITR) - 9/30/ Version: 1 1. General information Centrais Elétricas de Santa Catarina S.A. ("Celesc" or the "Company") is a public corporation headquartered at Av. Itamarati, Itacorubi, in the city of Florianópolis, State of Santa Catarina, Brazil. The Company is controlled by the Government of the State of Santa Catarina. Celesc was first listed on a stock exchange on March 26, 1973, and its shares are currently traded at Corporate Governance Level 2 of the São Paulo Securities, Commodities and Futures Exchange (BM&FBOVESPA S.A.). The main activity of the Company and of its subsidiaries, jointly-controlled subsidiaries and associates is the distribution, transmission and generation of electric energy. It also operates in the piped natural gas distribution segment. This Quarterly Information was approved by the Company's Board of Directors on November 7, At September 30, 2013, the main consolidated wholly-owned subsidiaries, jointly-controlled subsidiaries and associates are: Ownership percentage - % Description September 30, 2013 December 31, 2012 Direct Indirect Direct Indirect Subsidiaries Celesc Distribuição S.A. (Celesc D) Celesc Geração S.A. (Celesc G) Description September 30, 2013 Ownership percentage - % December 31, 2012 Direct Indirect Direct Indirect Jointly-controlled subsidiaries Companhia de Gás de Santa Catarina - SCGÁS Empresa Catarinense de Transmissão de Energia - ECTE Campo Belo Energética S.A. (Campo Belo) Painel Energética S.A. (Painel) Rondinha Energética S.A. (Rondinha) Companhia Energética Rio das Flores (Rio das Flores) Xavantina Energética (Xavantina) Bandeirante Energética (Bandeirante) Associated companies Dona Francisca Energética S.A. - DFESA Usina Hidrelétrica de Cubatão S.A. (Cubatão) Page 25 of 97

37 Quarterly information (ITR) - 9/30/ Version: Concessions a) Provisional Measure - MP 579/2012 (Law 12,783/2013) On September 11, 2012, with the objective of reducing electric energy costs to consumers, the Federal Government published the Provisional Measure (MP) 579/2012. The Presidential Decree 7,805, issued on September 14, 2012, defined some of the operational procedures for implementing the provisions established by MP 579/2012. The Provisional Measure permits that concessionaires with generation, transmission and distribution agreements maturing between 2015 and 2017 accelerate the renewals of these agreements, provided that specific conditions are met. On January 11, 2013, the Provisional Measure 579/2012 was converted into Law 12,783/2013. As informed by the Federal Government, the objective of the measure is to reduce the energy tariffs by an average of 20.2%* (16.2% for residential consumers and between 19.7% and 28% for industrial consumers) and is based on two main points: (i) Elimination/reduction of some sector charges, which will contribute to reduce the final tariffs by 7%. (ii) Definition of new conditions to extend generation, transmission and distribution concession agreements with maturity dates between 2015 and 2017, which will have an average impact of 13.2% on the final tariffs. For the distribution concessionaires, MP 579/2012 defined a tariff reduction through the elimination/reduction of some of the charges of the sector as from January 1, It also defined the tariff reduction due to an extraordinary tariff revision that occurred as from February 2013, with the objective of reflecting the reduction of the generation and transmission tariffs, and also the effects of the reallocation of energy quotas of generators that will have their concessions extended. For the generation concessionaires, according to MP 579/2012, the renewal of concessions is subject to the acceptance of the following criteria: changes from the price system to the permitted revenue system, with periodical reviews; full allocation of the physical guarantees of energy and power of power plants addressed by MP 579/2012, on a quota regime basis, to the Distributors Regulated Contract Environment (ACR). Furthermore, MP 579/2012 establishes that upon renewal of the distribution, generation and transmission concessions, residual assets will be indemnified by the New Replacement Value - VNR. Future investments should be previously subjected to the regulator agent's approval. (*) Information referring to the percentages of reduction arising from MP 579/2012 was not audited. Page 26 of 97

38 Quarterly information (ITR) - 9/30/ Version: 1 b) Decree 7,945/13 - CDE Increase Because of the unfavorable hydro power conditions at the end of 2012 and beginning of 2013, among them the low levels of reservoirs in the hydroelectric power plant, the dispatch from thermal power plants was directed to the maximum level. Based on the above and considering the exposure of the concessionaires in the short-term market, mainly arising from the allocation of quotas of physical guarantee of energy and power and the revocation of the authorization of the power plants by ANEEL, the cost of energy of the distributors had a significant increase in 2012 and beginning of Due to this scenario and considering that the distribution concessionaires do not administer such costs, the Brazilian government issued, on March 7, 2013, Decree 7,945, which made some alterations related to the contracting of energy and the objectives of the sector-related charge called Energy Development Account (CDE). As regards the contracting of energy, Decree 7,945 (i) reduced the minimum term from three to one year, as from the beginning of the supply of energy, of electric energy sales agreements from existing ventures and (ii) increased the transfer of the costs of acquisition of electric energy by the distributors to the end consumers from one hundred and three per cent to one hundred and five per cent of the total amount of electric energy contracted in relation to the annual charge of supply of the distributor. As regards the objectives of CDE, the Decree altered them and established the transfer of funds from CDE to the distribution concessionaires of the costs listed below: i. The short-term market exposure of the hydroelectric power plants contracted under the physical guarantee of energy and power quota regime basis, due to insufficient generation allocated within the Energy Reallocation Mechanism - MRE (Hydrologic Risk). ii. The exposure of the distributors in the short-term market, due to insufficient support by the agreements with regard to the load delivered, related to the amount of replacement not contracted back due to the non-adhesion to an extension of the concessions of electric energy generation (involuntary exposure). iii. The additional cost related to the entry into operation of the thermal power plants off the merit order due to a decision of the Electric Sector Monitoring Committee - CMSE (ESS - Energetic Security). iv. The full or partial value of the positive balance accumulated by the Account of Variation of Items from Portion A - CVA, related to the system service charges and the energy purchased for resale (CVA ESS and Energy). Page 27 of 97

39 Quarterly information (ITR) - 9/30/ Version: 1 For items (i), (ii) and (iii), the Company recorded, in accordance with CPC 07/IAS 20 - Government Grants and Assistance, the amount of R$ 146,401. For item (iv), in the process of Tariff Revision of Celesc D, through the Ratifying Resolution 1,574, of July 30, 2013, Aneel granted coverage of the positive result of the Memorandum Accounts of Variation of Items from Portion A - CVA estimated on the energy purchased and the ESS charge in the amount of R$ 569,507. Both amounts were recorded as a credit of Cost with Electric Energy in the account Recovery of Expenses. c) Ratifying Resolution 1,574/13 - Grant and Transfer of CDE ANEEL, through Ratifying Resolution 1,574, of July 30, 2013, ratified the transfer from Eletrobrás to Celesc D, in the accrual period from December 2013 to July 2014, up to the 10th business day of the subsequent month, referring to the discounts on the tariffs applicable to the users of the electric energy distribution utilities, in the monthly amount of R$ 31.8 thousand. d) Celesc Distribuição S.A. Monthly amount of the grant of CDE to fund tariff discounts Load - Source with incentives 4,911 Generation - Source with incentives 850 Distribution 15,210 Water, Sewage and Sanitation 963 Rural 9,675 Irrigator/Fish Farmer 192 Total 31,801 On July 22, 1999, Celesc D entered into the Contract of Electric Energy Distribution concession 56, which regulates the exploration of electric energy distribution utilities. That concession is effective until July 7, The concession of Celesc D is not onerous; therefore, there are no fixed commitments and payments to be made. According to the concession agreement, at the end of the term of effectiveness, the assets and facilities linked to the distribution of electric energy will become part of the Federal Government's assets, through indemnity of the investments made but not yet amortized, provided that authorized by ANEEL and determined by the regulator. Considering that the conditions established by the Technical Interpretation ICPC 01 - Concession Agreements were fully met, Management of Celesc D concluded that its concession agreement is within the scope of ICPC01 and, therefore, the assets linked to the concession are divided into indemnifying asset and intangible asset. The tariff adjustment is on August 7 of each year and the periodical tariff revision is every four years. Page 28 of 97

40 Quarterly information (ITR) - 9/30/ Version: 1 Celesc D, in compliance with the provisions of the legislation, requested, on September 18, 2012, the postponement of its concession for 30 more years, as from July The conditions for the postponement will be known only upon disclosure by the Grantor of the Concession of the draft of the amendment to the concession agreement. It is not expected that the tariff reduction introduced by MP 579/2012 will cause relevant impacts to the distribution segment, considering that the changes will only affect the cost of energy purchase and transportation and sector-related charges, which will be fully included in the tariff to the final consumer. e) Celesc Geração S.A. As defined in section two of ANEEL concession agreement 55, of July 22, 1999, the subsidiary Celesc G holds the following concessions for electric energy generation: Generating plant Location Installed capacity (MW) Concession expiration date Palmeiras - Rio dos Cedros Rio dos Cedros/SC /7/2016 Bracinho - Rio Bracinho Schroeder/SC /7/2016 Garcia - Rio Garcia Angelina/SC 8.9 7/7/2015 Cedros - Rio dos Cedros Rio dos Cedros/SC /7/2016 Salto - Rio Itajaí-Açu Blumenau/SC /7/2016 Celso Ramos - Rio Chapecozinho Faxinal do Guedes/SC /22/2021 Pery - Rio Canoas Curitibanos/SC /9/2017 Caveiras - Rio Caveiras Lages/SC 3.8 7/10/2018 Ivo Silveira - Rio Santa Cruz Campos Novos/SC 2.6 7/7/2015 Pirai - Rio Pirai Joinville/SC 0.8 (i) São Lourenço - Rio São Lourenço Mafra/SC 0.4 (i) Rio do Peixe - Rio do Peixe Videira/SC 0.5 (i) Total installed capacity (i) The companies have no defined concession terms. As required by MP 579/2012, the Group registered its request for the extension of concessions for Small Hydroelectric Plants (SHPs) affected by MP 579/2012 on October 15, 2012: Generating plant Location Installed capacity (MW) Concession expiration date Palmeiras - Rio dos Cedros Rio dos Cedros/SC /7/2016 Bracinho - Rio Bracinho Schroeder/SC /7/2016 Garcia - Rio Garcia Angelina/SC 8.9 7/7/2015 Cedros - Rio dos Cedros Rio dos Cedros/SC /7/2016 Salto - Rio Itajaí-Açu Blumenau/SC /7/2016 Pery - Rio Canoas Curitibanos/SC /9/2017 Ivo Silveira - Rio Santa Cruz Campos Novos/SC 2.6 7/7/2015 Total installed capacity 95.8 Page 29 of 97

41 Quarterly information (ITR) - 9/30/ Version: 1 For the power plants listed above, the grantor of the concession did not consider the right to indemnity, except for SHP Pery, for which an indemnity of R$ 98.5 thousand was defined. According to DP 7,805/2012, the Ministry of Mines and Energy (MME) disclosed, on November 1, 2012, through Ordinance 578, of October 31, 2012, the energy generation tariffs applicable to the agreements mentioned above and the Joint Ministerial Ordinance (MME/MF) 580, of November 1, 2012, disclosed the indemnity amounts and made available to Celesc G the new amendments to the concession agreements. It was only on November 6, 2012, through the disclosure of the Technical Notes, that the Group became aware of the methodology utilized to define the initial generation tariffs and indemnity amounts to be paid to the generation concessionaires, respectively addressed by MME Ordinance 578, of October 31, 2012, and Joint Ministerial Ordinance (MME-MF) 580, of November 1, These power plants represent 86.51% of the installed power of Celesc G and a portion of their energy is being contracted under the Free Contracting Environment (ACL) as from Management analyzed the conditions established for extending the concession term, as well as the potential economic and financial effects and the tax effects on indemnity and tariff amounts, and is also conducting various internal studies in order to conclude about the non-extension of the concession period. In a special meeting held on November 22, 2012 the Board of Directors accompanied the understanding of the Executive Board and decided to not accept the terms of the anticipated renewal of the concessions for the plants of Celesc G based on MP 579/2012, which was later converted into Law 12,783/2013. The decision did not include SHP Pery, which was questioned with a request for an injunction to the Federal Court, to discuss the relative merit of the right to extend the concession for 20 years, as prescribed by Article 26, 7 of Law 9,427, of December 26, After the appeal to this suit on November 30, 2012, the injunction requested was granted by the Honorable Justice suspending the signature of the Addendum to the concession agreement 055/1999. The Defendant filed the Bill of Review in the Federal Regional Court of the 4th Region on 12/20/2012, requesting suspensive effect for the decision that granted the injunction. On July 11, 2013, concession agreement 006/2013, entered into between Celesc G and the Federal Government, through ANEEL, has the objective of regulating the exploration of the hydropower potential through central generators and transmission facilities of restricted interest - SHP. Celesc G should pay a monthly quota for the Use of Public Assets (UBP) as from August 15, 2013, for 60 months or until the end of the concession of each SHP to Centrais Elétricas Brasileiras S.A. - Eletrobrás. Page 30 of 97

42 Quarterly information (ITR) - 9/30/ Version: 1 The concession agreement includes but is not limited to the following provisions: (a) in order to use the public asset, the Company shall pay to the Federal Government, during five years as from the signature of the agreement, monthly installments equivalent to 1/12th of the annual payment proposed, monetarily restated by the variation of the Amplified Consumer Price Index (IPCA) of the Brazilian Institute of Geography and Statistics (IBGE), being based on the index for the month prior to the publication of the administrative act that approved the alteration of the concession exploration regime, with no postponement the assets and facilities linked to the hydroelectrical use will become part of the Federal Government assets, through indemnity of investments made, provided that previously authorized but not yet amortized, estimated by the audit of ANEEL. SHPs Value of UBP Installments Concession until Garcia 22 7/7/2015 Ivo Silveira 6 7/7/2015 Cedros 21 11/7/2016 Salto 17 11/7/2016 Bracinho 25 11/7/2016 Pery 52 7/9/2017 Celso ramos 12 11/22/2021 f) Companhia de Gás de Santa Catarina S.A. - SCGÁS The jointly-controlled subsidiary SCGÁS has a concession agreement to render piped gas distribution services throughout the State of Santa Catarina, which was signed on March 28, 1994, and is effective for 50 years. g) Empresa Catarinense de Transmissão de Energia - ECTE The jointly-controlled subsidiary ECTE has a concession agreement for electric energy transmission dated November 1, 2000 and effective for 30 years. 2. Basis of preparation 2.1. Statement of compliance 2.11 Consolidated quarterly information The consolidated quarterly information was prepared and is being presented in accordance with the Technical Pronouncement CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), and presented in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of Quarterly Information (ITR). Page 31 of 97

43 Quarterly information (ITR) - 9/30/ Version: Parent company quarterly information The parent company quarterly information was prepared and is being presented in accordance with the Technical Pronouncement CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and presented in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of Quarterly Information (ITR). These practices differ from IFRS only with respect to the measurement of investments in subsidiaries based on the equity accounting method, instead of cost or fair value in accordance with IFRS. However, there is no difference between equity and the result of the Parent Company in its parent company financial statements. Thus, the Group's consolidated financial statements and the Parent Company's financial statements are being presented side by side in a single set of financial statements Functional and presentation currency The consolidated quarterly information and the quarterly information of each Group company are presented in reais, which is the functional currency of the Company and also the presentation currency of the Group. All amounts are rounded to thousands of reais, unless otherwise stated Critical accounting estimates and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Based on assumptions, the Group makes estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. a) Fair value of other financial instruments The fair value of other financial instruments that are not traded in an active market is determined using valuation techniques. The Group uses judgment to select, among a variety of methods, the most appropriate, according to which assumptions are defined, which are mainly based on market conditions existing at the end of each reporting period. Page 32 of 97

44 Quarterly information (ITR) - 9/30/ Version: 1 b) Pension benefits The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis utilizing a number of assumptions. The assumptions utilized in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations. The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality government or corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation. Other key assumptions for pension obligations are based in part on current market conditions. c) Income tax and social contribution The Group recognizes provisions for situations in which additional taxes will probably be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax assets and liabilities in the period in which such determination is made. d) Contingencies The Group is currently involved in various tax, labor, civil and regulatory lawsuits, as described in Note 22. Provisions are recognized for probable losses (when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated). The probability of loss is assessed based on available evidence, including the assessment of external legal counsel. Page 33 of 97

45 Quarterly information (ITR) - 9/30/ Version: 1 e) Impairment of non-financial assets The impairment of the assets utilized in the Group's activities is assessed whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable based on future cash flows. An asset's carrying amount is written down immediately to its recoverable amount and its useful life is reviewed and adjusted if the asset's carrying amount is greater than its estimated recoverable amount Pronouncements applicable to the Group as from January 1, IFRS New Standards, Amendments and Interpretations, adopted in the parent company and consolidated quarterly information In 2012 the Brazilian Accounting Pronouncements Committee (CPC) issued, among others, the following pronouncements that affect the Company's activities: CPC 33 (R1) - Employee Benefits. CPC 18 (R2) - Investments in Associated and Subsidiary Companies and Jointlycontrolled Entities. CPC 19 (R2) - Joint Arrangements. These accounting pronouncements, approved by the Brazilian Securities Commission (CVM) in 2012, became mandatory for the years beginning as from January 1, 2013 and determine that the jointly-controlled entities be recorded in the Company's financial statements through the equity accounting method (MEP). The characteristics and the economic reason of the Company's interest classify the jointlycontrolled ventures of the investees listed in the table below. With the adoption of these new accounting pronouncements in the first quarter of 2013 the Company no longer consolidates on a pro rata basis these investments. Jointly-controlled subsidiaries: Companhia de Gás de Santa Catarina - SCGÁS Empresa Catarinense de Transmissão de Energia - ECTE Campo Belo Energética S.A. (Campo Belo) Painel Energética S.A. (Painel) Rondinha Energética S.A. (Rondinha) Companhia Energética Rio das Flores (Rio das Flores) Xavantina Energética (Xavantina) Bandeirante Energética (Bandeirante) Page 34 of 97

46 Quarterly information (ITR) - 9/30/ Version: 1 The Company's financial information as from the first quarter of 2013 presents the financial position, recognizing the results of these investments through equity in the results of investees. In addition, for comparison purposes, the financial information of the Company for 2012 also recognizes the result of these investments through equity in the results of investees. Another new standard applied as from January 1, 2013 was CPC 33 (R1) and IAS 19 - Employee Benefits. The main impacts of these changes are: (i) elimination of the "corridor approach; (ii) recognition of actuarial gains and losses in other comprehensive income (loss), on occurring; (iii) immediate recognition, in the results, of past service costs; and (iv) replacement of the interest cost and expected return on the plan's assets by an amount of net interest, calculated through the application of the discount rate on assets (liabilities) of the net defined benefit. The standard is applicable as from January 1, The application of these new standards changed the balances of the Company's consolidated Balance Sheet at January 1, 2012 and December 31, It also changed the balances of the Statement of operations for the quarter and nine-month period ended September 30, 2012, and Cash Flows and Value Added for the nine-month period then ended, which were used for comparison with the same statements that are being presented at September 30, Page 35 of 97

47 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE BALANCE SHEET At January 1, 2012 (Amounts in thousands of reais) Assets 1/1/2012 CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Consolidated 1/1/2012 Adjusted Current assets Cash and cash equivalents 442,495 - (13,741) 428,754 Marketable securities 15, ,062 Trade receivables 858,809 - (8,509) 850,300 Inventories 20,510 - (1,203) 19,307 Taxes recoverable or for offset 73,337 - (899) 72,438 Dividends receivable 2,215-1,864 4,079 Indemnifiable assets (concession) 20,303 - (20,303) - Other receivables 39,460 - (1,938) 37,522 1,472,191 - (44,729) 1,427,462 Non-current assets Marketable securities 133, ,013 Trade receivables 121,430 - (54) 121,376 Other receivables from related parties 64, ,888 Deferred taxes 342,560 (56,439) (463) 285,658 Taxes recoverable or for offset 13, ,697 Judicial deposits 147,178 - (222) 146,956 Indemnifiable assets (concession) 1,987,103 - (43,163) 1,943,940 Other receivables 4,838 - (3,408) 1,430 Investments in subsidiaries and associates 25, , ,994 Intangible assets 616,381 - (81,494) 534,887 Property, plant and equipment 370,105 - (18,277) 351,828 3,827,037 (56,439) (17,931) 3,752,667 Total assets 5,299,228 (56,439) (62,660) 5,180,129 Page 36 of 97

48 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE BALANCE SHEET At January 1, 2012 (Amounts in thousands of reais) Liabilities and equity 1/1/2012 CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Consolidated 1/1/2012 Adjusted Current liabilities Trade payables 433,503 - (18,980) 414,523 Borrowings and debentures 241,298 - (6,136) 235,162 Salaries and social charges 120,632 - (1,257) 119,375 Taxes and contributions 129,800 - (6,585) 123,215 Proposed dividends 72, ,048 Regulatory charges 174,941 - (684) 174,257 Other payables to related parties 18, ,113 Actuarial liability 115, ,908 Other liabilities 19,177 - (239) 18,938 1,325,420 - (33,881) 1,291,539 Non-current liabilities Borrowings and debentures 129,800 - (21,871) 107,929 Taxes and contributions 1, ,207 Deferred taxes 78,140 - (5,751) 72,389 Regulatory charges 147, ,841 Provision for contingencies 489,207 - (345) 488,862 Actuarial liability 949,795 (165,998) - 783,797 Other liabilities 3,287 - (812) 2,475 1,799,277 (165,998) (28,779) 1,604,500 Equity Share capital 1,017, ,017,700 Capital reserves Revenue reserves 1,001, ,001,394 Carrying value adjustments 139, , ,295 Additional dividends to distribute 15, ,385 2,174, ,559-2,284,090 Total liabilities and equity 5,299,228 (56,439) (62,660) 5,180,129 Page 37 of 97

49 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE BALANCE SHEET At December 31, 2012 (Amounts in thousands of reais) Assets 12/31/2012 CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Consolidated 12/31/2012 Adjusted Current assets Cash and cash equivalents 199,865 - (27,125) 172,740 Marketable securities 16, ,343 Trade receivables 999,436 - (9,072) 990,364 Inventories 15,993 - (1,234) 14,759 Taxes recoverable or for offset 92,432 - (339) 92,093 Dividends receivable ,037 Indemnifiable assets (concession) 22,147 - (22,147) - Other receivables 28,180 - (3,479) 24,701 1,374,473 - (62,436) 1,312,037 Non-current assets Marketable securities 55, ,198 Trade receivables 102,764 - (2,322) 100,442 Other receivables from related parties 36, ,472 Deferred taxes 431,130 63,526 (481) 494,175 Taxes recoverable or for offset 14, ,060 Judicial deposits 139,910 - (287) 139,623 Indemnifiable assets (concession) 2,435,306 - (44,632) 2,390,674 Other receivables 7,114 - (5,091) 2,023 Investments in subsidiaries and associates 32, , ,062 Intangible assets 467,092 - (91,895) 375,197 Property, plant and equipment 273,194 - (17,901) 255,293 3,994,775 63,526 (27,082) 4,031,219 Total assets 5,369,248 63,526 (89,518) 5,343,256 Page 38 of 97

50 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE BALANCE SHEET At December 31, 2012 (Amounts in thousands of reais) Liabilities and equity 12/31/2012 CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Consolidated 12/31/2012 Adjusted Current liabilities Trade payables 721,331 - (18,050) 703,281 Borrowings and debentures 88,165 - (7,101) 81,064 Salaries and social charges 116,471 - (1,044) 115,427 Taxes and contributions 95,441 - (5,716) 89,725 Proposed dividends (154) 426 Regulatory charges 123,700 - (809) 122,891 Other payables to related parties 14, ,538 Actuarial liability 130, ,960 Other liabilities 48,823 - (1,437) 47,386 1,340,009 - (34,311) 1,305,698 Non-current liabilities Borrowings and debentures 300,654 - (43,608) 257,046 Salaries and social charges Deferred taxes 38,239 - (9,835) 28,404 Regulatory charges 189, ,184 Provision for contingencies 426, ,645 Actuarial liability 1,169, ,973-1,356,430 Other liabilities 4,239 - (1,764) 2,475 2,128, ,973 (55,207) 2,260,225 Equity Share capital 1,017, ,017,700 Capital reserves Revenue reserves 745,892 (5,689) - 740,203 Carrying value adjustments 136,872 (117,758) - 19,114 1,900,780 (123,447) - 1,777,333 Total liabilities and equity 5,369,248 63,526 (89,518) 5,343,256 Page 39 of 97

51 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE BALANCE SHEET At January 1, 2012 (Amounts in thousands of reais) Assets 1/1/2012 Non-current assets CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Parent company 1/1/2012 Adjusted Investments 1,932, ,559-2,041,832 BALANCE SHEET At January 1, 2012 (Amounts in thousands of reais) Liabilities and equity 1/1/2012 Equity CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Parent company 1/1/2012 Adjusted Share capital 1,017, ,017,700 Capital reserves Revenue reserves 1,001, ,001,394 Carrying value adjustments 139, , ,295 Additional dividends to distribute 15, ,385 2,174, ,559-2,284,090 Page 40 of 97

52 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE BALANCE SHEET At December 31, 2012 (Amounts in thousands of reais) Assets 12/31/2012 Non-current assets CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Parent company 12/31/2012 Adjusted Investments 1,738,781 (123,447) - 1,615,334 BALANCE SHEET At December 31, 2012 (Amounts in thousands of reais) Liabilities and equity 12/31/2012 Equity CPC 33 Adjustments CPC 18 and CPC 19 Adjustments Parent company 12/31/2012 Adjusted Share capital 1,017, ,017,700 Capital reserves Revenue reserves 745,892 (5,689) - 740,203 Carrying value adjustments 136,872 (117,758) - 19,114 1,900,780 (123,447) - 1,777,333 Page 41 of 97

53 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE STATEMENT OF OPERATIONS At September 30, 2012 (Amounts in thousands of reais) 9/30/2012 Adjustments Adjustments CPC 33 CPC 18 and CPC 19 Consolidated 9/30/2012 Adjusted Revenue 3,217,754 - (94,578) 3,123,176 Revenue from sales and services 2,998,784 - (90,679) 2,908,105 Construction revenue 218,970 - (3,899) 215,071 Costs (2,816,580) - 71,597 (2,744,983) Cost of sales and services (2,597,610) - 67,698 (2,529,912) Construction cost (218,970) - 3,899 (215,071) Gross profit 401,174 - (22,981) 378,193 Selling expenses (121,117) (120,321) General and administrative expenses (487,076) (2,100) 13,451 (475,725) Other operating expenses 1,837 - (5,743) (3,906) Equity in the results of investees 5,583-7,455 13,038 Operating income (expenses) (199,599) (2,100) (7,022) (208,721) Finance income 95,307 - (330) 94,977 Finance costs (57,412) - 2,007 (55,405) Finance result 37,895-1,677 39,572 Profit (loss) before taxation (161,704) (2,100) (5,345) (169,149) Current (11,532) - 4,253 (7,279) Deferred 52, ,092 53,967 Profit/loss for the quarter (121,075) (1,386) - (122,461) Page 42 of 97

54 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE STATEMENT OF OPERATIONS From July 1, 2012 to September 30, 2012 (Amounts in thousands of reais) Consolidated Adjustments 7/1/2012 to 7/1/2012 to CPC 33 CPC 18 9/30/2012 9/30/2012 Adjustments and CPC 19 adjusted Revenue 1,051,297 - (38,997) 1,012,300 Revenue from sales and services 980,688 - (38,997) 941,691 Construction revenue 70, ,609 Costs (927,215) - 28,256 (898,959) Cost of sales and services (856,606) - 28,256 (828,350) Construction cost (70,609) - - (70,609) Gross profit 124,082 - (10,741) 113,341 Selling expenses (34,753) (34,500) General and administrative expenses (331,998) (701) 11,579 (321,120) Other operating expenses 39,549 - (5,864) 33,685 Equity in the results of investees 1,851-1,899 3,750 - Operating income (expenses) (201,269) (701) (2,874) (204,844) Finance income 28,556 - (55) 28,501 Finance costs (13,340) (13,161) - Finance result 15, ,340 - Profit (loss) before taxation (186,053) (701) (2,750) (189,504) Current (2,255) - 2,008 (247) Deferred 52, ,750 Profit/loss for the quarter (135,539) (462) - (136,001) Page 43 of 97

55 Quarterly information (ITR) - 9/30/ Version: 1 FINANCIAL STATEMENTS CNPJ N o / / NIRE STATEMENT OF CASH FLOWS - INDIRECT METHOD At September 30, 2012 (Amounts in thousands of reais) Description 9/30/2012 CPC 18, CPC 19 and CPC 33 Adjustments Consolidated 9/30/2012 Adjusted Net cash provided by operating activities 115,030 97, ,602 Net cash used in investing activities (158,132) (101,525) (259,657) Net cash used in financing activities (152,604) 5,203 (147,401) Net increase (decrease) in cash and cash equivalents (195,706) 1,250 (194,456) Cash and cash equivalents at the beginning of the period 442,495 (13,741) 428,754 Cash and cash equivalents at the end of the period 246,789 (12,491) 234,298 Net increase (decrease) in cash and cash equivalents (195,706) 1,250 (194,456) Page 44 of 97

56 Quarterly information (ITR) - 9/30/ Version: 1 CNPJ N o / / NIRE STATEMENT OF VALUE ADDED At September 30, 2012 (Amounts in thousands of reais) Consolidated Adjustments 9/30/2012 CPC 18, 9/30/2012 CPC 19 and Adjusted CPC 33 Revenues Gross sales and services 4,906,942 (111,486) 4,795,456 Construction revenue 218,970 (3,899) 215,071 Recoverable losses from customers - (Reversal/Constitution) (33,805) 45 (33,760) Inputs acquired from third parties Cost of services (1,990,473) (205,834) (2,196,307) Construction cost (218,970) 318,412 (71,827) Materials, energy, third party and other operating services (390,239) 3,899 (215,071) Other 42,947 (42,947) - Gross value added 2,535,372 (41,810) 2,493,562 Depreciation, amortization and depletion (120,404) 164 (120,240) Net value added generated by the entity 2,414,968 (41,646) 2,373,322 Value added received through transfer Equity in the results of investees 5,583 7,455 13,038 Finance income 95,307 (330) 94,977 Total value added to distribute 2,515,858 (34,521) 2,481,337 Distribution of value added Personnel and payroll charges (689,505) 968 (688,537) Taxes and contributions (1,882,490) 28,194 (1,854,296) Remuneration of third-party capital (64,938) 3,973 (60,965) Retained earnings/loss for the period 121,075 1, ,461 (2,515,858) 34,521 (2,481,337) Page 45 of 97

57 Quarterly information (ITR) - 9/30/ Version: 1 3. Summary of significant accounting policies The main accounting practices adopted by the Group in the preparation of its quarterly information for the quarter ended September 30, 2013 were applied in a manner consistent with those disclosed in the financial statements for the year ended December 31, 2012, and, therefore, should be read in conjunction with those financial statements, except for the presentation in Note Financial risk management 4.1. Financial risk factors The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to mitigate any potential adverse impact on its financial performance Market risk 4.21 Exchange rate risk This risk arises from the possibility that its subsidiaries may incur losses and cash restrictions due to fluctuations in the exchange rates, increasing the liability balances denominated in foreign currency. The subsidiary Celesc D is exposed in its operating activities to the exchange variation in the purchase of electric energy from Itaipu. The compensation mechanism (CVA) protects the companies from possible losses. However, this compensation will take place only with the consumption and resulting billing of energy that occurred after the subsequent tariff adjustment, in which such losses have occurred. Decree 7,945, of March 7, 2013, established that the full or partial amount of the positive balances accumulated by CVA, related to the System Service Charges and the energy purchased for resale (CVA ESS and Energy), would be transferred with funds from the CDE, upon tariff adjustment or review Cash flow and fair value interest rate risk This risk arises from the possibility of the Group incurring losses due to interest rate or other debt indexing unit fluctuations that could increase its interest expense on borrowings and financing obtained in the market or that could reduce interest income on the Group's financial investments. The Group has no derivative agreements to cover this risk. Page 46 of 97

58 Quarterly information (ITR) - 9/30/ Version: Credit risk This risk arises from the possibility that the Group may incur losses as a result of difficulties in collecting amounts billed to its consumers, concessionaires and licensees. To reduce this type of risk and assist in its management, the Company monitors consumer receivables by carrying out several collection actions, including the interruption of supply if the consumer fails to make payment. In the case of consumers, the credit risk is low because of the significant diversification of the portfolio Liquidity risk Cash flow forecasting is performed in the operating areas of the Group and aggregated by the Finance Department. This department monitors rolling forecasts of the Group's liquidity requirements in order to ensure it has sufficient cash to meet its operational needs. Surplus cash held by the operating entities in excess of the balance required for working capital management is transferred to the Group Treasury, which invests this surplus cash in interestearning current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient margins as determined by the above-mentioned forecasts. The table below analyzes the Group's non-derivative financial liabilities into relevant maturity groupings, based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Consolidated Description No later than Between one and one year five years Over five years CDI (%) At December 31, 2012 Borrowings - per balance sheet 81, ,639 36,407 Borrowings - undiscounted 84, ,645 53,173 Trade payables 703, CDI 1 (%) At September 30, 2013 Borrowings - per balance sheet 203, ,975 32,808 Borrowings - undiscounted 213, ,335 52,742 Debentures - per balance sheet 10, ,630 99,681 Debentures - undiscounted 10, , ,245 Trade payables 447, Future yield curve BM&F DI 1 FUT V13 (closing on 10/29/2013) Page 47 of 97

59 Quarterly information (ITR) - 9/30/ Version: Operational risks Electric energy shortages The Brazilian Electric Energy System is predominantly supplied by hydroelectric generation plants. A prolonged period of insufficient rain during the wet season reduces the water volume in the reservoirs of these plants, consequently causing an increase in the cost of electric energy purchases in the short-term market, as well as an increase in the amounts of System Charges as a result of the dispatch from thermal power plants. In an extreme situation, an energy rationing program could be adopted, which would imply revenue reduction. However, considering the current levels of the reservoirs and the latest simulations made, the Brazilian Electric Energy System Operator (ONS) does not foresee a new rationing program within the next years Non-renewal of concession risk The Group has concessions for the exploration of the generation, transmission and distribution of electric energy and gas distribution services. The Company filed the request for extension on September 18, 2012 for the concession of contract 56/1999, of Celesc D, as permitted by MP 579/2012, converted into Law 12,783/2013 and started to be regulated by Federal Decree 7,891, of January 23, The Company's management considers that the risk of non-extension of the concession of the Electric Energy Distribution is remote. For the generation of energy contract 55/1999, the Company opted for the non-renewal Additional sensitivity analysis required by the Brazilian Securities Commission (CVM) The sensitivity analysis table of the financial instruments shown below discloses the risks that could generate material variations to the Company's results, with the most probable scenario (Scenario I) evaluated by management, considering a three-month horizon when the next financial information containing such analysis will be disclosed. In addition, two other scenarios (Scenarios II and III) are presented, as required by CVM Instruction 475, of December 17, 2008, based on a 25% and 50% deterioration in the risk variables, respectively. The sensitivity analysis presented relating to the balances at September 30, 2013 considers changes in relation to a determined risk, with all other variables associated with other risks being maintained constant: Page 48 of 97

60 Quarterly information (ITR) - 9/30/ Version: 1 Assumptions Effects on profit and loss accounts Balance Probable scenario (Scenario I) (Scenario II) Consolidated (Scenario III) CDI (%) 9.96% 12.45% 14.94% Financial investments 768,990 76,591 95, ,887 Non-current receivables 6, ,010 Debentures (-) (308,380) (30,715) (38,393) (46,072) IGP-M 2 (%) 4.40% 5.49% 6.59% Indemnifiable assets (concession) 2,284, , , , Capital risk management The Group's objectives when managing its capital are to safeguard its ability to continue as a going concern in order to provide returns for stockholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust its capital structure, the Group could, for example, revise the dividend payment policy, return capital to stockholders, issue new shares, or sell assets to reduce debt. Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including current and non-current borrowings) and debentures, less cash and cash equivalents. Total capital is calculated as equity plus net debt. Description September 30, 2013 Consolidated December 31, 2012 Total borrowings 424, ,110 Debentures 308,380 - Less: Cash and cash equivalents (851,500) (172,740) Net debt (118,873) 165,370 Total equity 1,927,248 1,777,333 Total capital 1,808,375 1,942,703 Gearing ratio - % -6.57% 8.51% 2 IGPM General Market Price Index Page 49 of 97

61 Quarterly information (ITR) - 9/30/ Version: Fair value estimation The carrying values of trade receivables and payables, less impairment provision, are assumed to approximate their fair values. The fair values of financial liabilities for disclosure purposes are estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The Group adopted CPC 46 for financial instruments that are measured in the balance sheet at their fair value. This requires the disclosure of fair value measurements, by level, of the following fair value measurement hierarchy: Quoted prices (unadjusted) in active markets for identical assets or liabilities to which the company may have access on the measurement date (Level 1). Inputs other than quoted prices included within Level 1 that are observed, either directly or indirectly (Level 2). Unobservable data for assets or liabilities (Level 3). The following table presents the Group's assets measured at their fair value as at September 30, The Group did not have liabilities measured at fair value at this reporting date. Consolidated Description Level 3 Total balance Assets Financial assets at fair value through profit or loss Shares 54,981 54,981 Available-for-sale financial assets Indemnifiable assets (concession) 2,571,447 2,571,447 Other Total assets 2,626,645 2,626,645 The following table presents the Group's assets measured at their fair value as at December 31, Consolidated Description Level 1 Level 3 Total balance Assets Financial assets at fair value through profit or loss Government securities 16,343-16,343 Shares - 54,981 54,981 Available-for-sale financial assets Indemnifiable assets (concession) - 2,390,674 2,390,674 Other Total assets 16,343 2,445,872 2,462,215 Page 50 of 97

62 Quarterly information (ITR) - 9/30/ Version: 1 The fair value of financial instruments traded in active markets (such as securities held for trading and available for sale) is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted price used for the financial assets held by the Group is the current bid price. These instruments are included in Level 1. The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques. These valuation techniques maximize the use of observable market data, where available, and rely as little as possible on entity-specific estimates. If all significant inputs required to estimate the fair value of an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Specific valuation techniques used to value financial instruments include: quoted market prices or dealer quotes for similar instruments; other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments. 5. Financial instruments by category The table below presents Financial Instruments by Category as at September 30, 2013: Description Assets at fair value through profit or loss Loans and receivables Availablefor-sale Financial liabilities at amortized cost Consolidated Assets Cash and cash equivalents - 851, ,500 Shares 54, ,981 Indemnifiable assets (concession) - - 2,571,447-2,571,447 Trade receivables - 1,182, ,182,128 Other ,981 2,033,628 2,571,664-4,660,273 Liabilities Trade payables , ,227 Borrowings , ,247 Debentures , , ,179,854 1,179,854 Total Page 51 of 97

63 Quarterly information (ITR) - 9/30/ Version: 1 The table below presents Financial Instruments by Category as at December 31, 2012: Description Assets at fair value through profit or loss Loans and receivables Availablefor-sale Financial liabilities at amortized cost Consolidated Assets Cash and cash equivalents - 172, ,740 Government securities 16, ,343 Shares 54, ,981 Indemnifiable assets (concession) - - 2,390,674-2,390,674 Trade receivables - 1,565, ,565,058 Other ,324 1,737,798 2,390,891-4,200,013 Liabilities Trade payables , ,281 Borrowings , , ,041,391 1,041, Credit quality of financial assets The credit quality of financial assets is assessed by reference to internal credit ratings: Total Consolidated Description September 30, 2013 December 31, 2012 Trade receivables Group 1 - Customers with no payment delays 540, ,371 Group 2 - Customers with average delays from 01 to 90 days 109, ,932 Group 3 - Customers with average delays of over 91 days 532, ,755 1,182,128 1,565,058 All other financial assets held by the Group, especially current accounts and financial investments, are considered high quality and presenting no indications of impairment. Page 52 of 97

64 Quarterly information (ITR) - 9/30/ Version: 1 7. Cash and cash equivalents Cash equivalents are maintained to meet the short-term cash commitments and not to other purposes. The Group considers cash equivalents as financial investments with immediate convertibility at a known cash amount. Parent company Consolidated Description September 30, 2013 December 31, September 30, December 31, Cash at bank and on hand 1,671 1,216 82,510 47,852 Short-term marketable securities 3 24,347 36, , ,888 26,018 37, , ,740 The Group's balance of short-term marketable securities increased at September 30, 2013 due to the receipt of the coverage of the positive balance of the Memorandum Accounts of Variation of Items from Portion A - CVA, in the amount of R$ 569,507, through the Ratifying Resolution 1,574, of July 30, Marketable securities Non-current assets at fair value through profit or loss are measured based on the lower of carrying amount and fair value and are not depreciated or amortized. Parent company Consolidated Description September 30, 2013 December 31, December 31, September 30, Fair value through profit or loss Government securities ,343 Casan shares 4 54,981 54,981 54,981 54,981 Available-for-sale Other investments ,198 55,198 55,198 71,541 Current ,343 Non-current 55,198 55,198 55,198 55,198 3 Short-term marketable securities are readily convertible into a known amount of cash, and are therefore subject to an immaterial risk of change in value. These securities comprise Bank Deposit Certificates (CDBs), with an average yield equivalent to 100% of the Interbank Deposit Certificate (CDI) rate. 4 Companhia Catarinense de Águas e Saneamento - Casan Page 53 of 97

65 Quarterly information (ITR) - 9/30/ Version: Companhia Catarinense de Águas e Saneamento - Casan The Company owns 55,364,810 Common Shares (ON) and 55,363,250 Preferred Shares (PN), representing 15.48% of Casan's share capital. As it does not have significant influence over Casan, the Company measured its equity interest at fair value. Since Casan's shares traded in the stock exchanges have no liquidity, the Company decided to establish through consistent bases accepted by the market a new criterion of valuation of this investment, adopting the discounted cash flow method. Accordingly, the Company determined Casan's fair value based on the economic and financial information of Casan. The historical cost of acquisition of Casan's shares is R$ 110,716. In 2012, based on the discounted cash flows, in the Company's finance result it was recognized the provision for fair value losses, in the amount of R$ 55,735, resulting in the fair value of R$ 54,981 at December 31, In December 2013, a new evaluation of the fair value will be made. 9. Trade receivables a) Consumers, concessionaires and permittees Description Balances not yet due Overdue for up to 90 days Overdue for more than 90 days September 30, 2013 Consolidated December 31, 2012 Consumers Residential 169,434 52,662 54, , ,499 Industrial 160,068 26, , , ,486 Commerce, services and other 103,389 17,544 60, , ,233 Rural 25,014 3,588 7,667 36,269 44,039 Government 24,314 3,436 32,496 60,246 62,919 Public lighting 14, ,222 29,573 29,818 Utilities 10, ,257 12, , , ,441 1,128,409 1,343,609 Supply to other concessionaires Concessionaires and permittees 21, ,929 23,982 55,495 Transactions through CCEE 26, , ,653 Other receivables (13,601) 4,364 12,657 3,420 15,301 33,844 5,289 14,586 53, ,449 Losses estimated in non-performing loans (PECLD) with clients (b) 540, , ,027 1,182,128 1,565,058 (487,953) (474,252) 694,175 1,090,806 Current 687, ,364 Non-current 6, ,442 Page 54 of 97

66 Quarterly information (ITR) - 9/30/ Version: 1 b) Losses estimated in non-performing loans (PECLD) with clients The breakdown, by consumer class, is as follows: Description September 30, 2013 Consolidated December 31, 2012 Consumers Residential 54,610 71,900 Industrial 182, ,293 Textile (b.2) 136,128 96,131 Commerce, services and other 57,569 60,154 Rural 5,186 5,682 Government 31,847 32,417 Public lighting 14,235 13,779 Utilities Concessionaires and permittees 1, Other 3,474 3, , ,252 Current 351, ,252 Non-current 136,128 - b.1) Change: Consolidated Description Amount At December 31, ,252 Provision recorded in the period 89,904 Trade receivables written-off (76,203) At September 30, ,953 b.2) Losses estimated in non-performing loans (PECLD) with the Textile Sector In 2009, Celesc Distribuição S.A. implemented a debt recovery action plan for certain companies in the textile sector, among which were Buettner S.A., Companhia Industrial Schlösser S.A., Fábrica de Tecidos Carlos Renaux S.A., Têxtil RenauxView S.A. and TEKA - Tecelagem Kuehnrich. In 2011, Buettner S.A. and Companhia Industrial Schlösser S.A. filed for reorganization, and based on the probability that the recovery of these amounts is remote Celesc D provisioned a total of R$ 18,231 in 2011 and R$ 16,888 in 2012, which represents the total of the credit that Celesc has with those companies. Page 55 of 97

67 Quarterly information (ITR) - 9/30/ Version: 1 In 2012, Fábrica de Tecidos Carlos Renaux S.A. also filed a receivership; however it presented a court-supervised reorganization plan. On July 15, 2013, the Judiciary of the State of Santa Catarina, District of Brusque, Commercial Court, adjudicated Fábrica de Tecidos Carlos Renaux S.A. bankrupt. Accordingly, in the third quarter of 2013, the Company recorded a loss of R$ 42,992. Also in 2012, the industrial consumer Tecelagem Kuehnrich - TEKA filed for reorganization with the District of Blumenau, Santa Catarina. Considering that the reorganization plan has not yet been approved and the probability of receiving this value is remote in the Management's opinion, Celesc D set up a provision of R$ 55,794, related to the total amount of the installments due to it by TEKA. As regards Têxtil RenauxView S.A., the management of Celesc D, considering the default of the debt referring to the contract of installment and because of the remote possibility of receipt, set up a provision of R$ 45,215 related to the total amount receivable in the third quarter of Indemnity assets - concession Consolidated Description September 30, 2013 December 31, 2012 In service 2,284,484 2,088,265 Concession assets - electric energy distribution (a) 2,284,484 2,088,265 Under construction 286, ,409 Concession assets - electric energy distribution (a) 286, ,409 Total 2,571,447 2,390,674 Non-current 2,571,447 2,390,674 The electric energy distribution concession agreements of the Group comply with the criteria for the application of Technical Interpretation ICPC 01 (IFRIC12), which addresses the treatment to be applied to concessions. Concession assets refer to receivables from the grantor of the concession (Federal Government), when the Company has an unconditional right, established by contract, to receive cash at the end of a concession as an indemnity arising from contracts for concessions of public services for electric energy distribution, in respect of investments in infrastructure not recovered through tariffs. These financial assets are classified as "securities held for sale". Page 56 of 97

68 Quarterly information (ITR) - 9/30/ Version: 1 a) Indemnity assets (Concession) - Electric energy distribution Indemnity assets At December 31, ,390,674 Additions 170,340 Write-offs (26,959) Restatement (i) 37,392 At September 30, ,571,447 (i) The Company recognized in result for the nine-month period ended September 30, 2013 the amount of R$ 37,392, referring to the restatement of the financial asset of concession of electric energy distribution at the New Replacement Value - VNR. 11. Taxes recoverable or for offset Description September 30, 2013 Parent company December 31, 2012 September 30, 2013 Consolidated December 31, 2012 ICMS ,550 47,753 PIS and COFINS ,154 IRPJ and CSLL 7 2,512 2,573 58,172 53,730 Other ,575 2,516 2,613 2, , ,153 Current 2,613 2,835 79,083 92,093 Non-current ,527 14,060 5 Value-Added Tax on Sales and Services (ICMS) 6 Social Integration Program (PIS) and Social Contribution on Revenues (COFINS) 7 Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) Page 57 of 97

69 Quarterly information (ITR) - 9/30/ Version: Related-party transactions a) Transactions and balances Parent company Other receivables Description from related parties At December 31, 2012 Government of the State of Santa Catarina Underground network (i) 4,262 SC Parcerias S.A.(ii) 32,210 36,472 At September 30, 2013 Government of the State of Santa Catarina Underground network (i) 4,262 SC Parcerias S.A.(ii) 16,106 20,368 Parent company Finance Description income At September 30, 2012 Government of the State of Santa Catarina Loan to the State Treasury 324 SC Parcerias S.A.(ii) 4,196 4,520 At September 30, 2013 Government of the State of Santa Catarina - SC Parcerias S.A.(ii) 1,936 1,936 Description Taxes payable Taxes for offset Sales receivable Other receivables from related parties Consolidated Other payables to related parties At December 31, 2012 Government of the State of Santa Catarina 45,005 47,753 8, Underground network (i) ,262 - SC Parcerias S.A.(ii) ,210 - Celos ,538 45,005 47,753 8,710 36,472 14,538 At September 30, 2013 Government of the State of Santa Catarina 51,895 41,550 4, Underground network (i) ,262 - SC Parcerias S.A.(ii) ,106 - Celos ,776 51,895 41,550 4,275 20,368 9,776 Page 58 of 97

70 Quarterly information (ITR) - 9/30/ Version: 1 Description Consolidated Taxes - revenue Sales revenue 9 Finance deductions 8 income At September 30, 2012 Government of the State of Santa Catarina 1,003,534 39,445 - Loan to the State Treasury SC Parcerias S.A.(ii) - - 4,196 1,003,534 39,445 4,520 At September 30, 2013 Government of the State of Santa Catarina 849,517 30,322 - SC Parcerias S.A.(ii) - - 1, ,517 30,322 1,936 (i) Underground network In 1995, the Company signed an agreement for technical cooperation with the Government of the State of Santa Catarina and the Municipal Government of Florianópolis to implement an underground electric energy network in downtown Florianópolis. The outstanding amount reflects the amount to be transferred by the State of Santa Catarina to Celesc and is currently being renegotiated. The Company seeks alternatives together with the Government of the State of Santa Catarina (State Finance Secretariat), to settle this debt. (ii) SC Parcerias S.A. This receivable arose from a Debt Acknowledgment, Assumption and Installment Payment Document signed on April 30, 2008, and was payable in 24 monthly installments, as from October 31, On the signature of the 1st Amendment to the Debt Acknowledgment, Assumption and Installment Payment Document in January 2011, the remaining amount of the debt was renegotiated for settlement in 42 monthly installments, with the first payment due on January 31, The debt balance is subject to interest at the rate of 1% per month. The installments referring to the 1st Amendment are being paid promptly by SC Parcerias. 8 Transactions involving taxes refer to ICMS on electric energy sales and are carried out pursuant to specific legislation. 9 Sales revenue refers to the sale of electric energy to the State Government effected under conditions similar to those utilized in transactions with unrelated parties, considering that the price of the electric energy is defined by ANEEL through a resolution referring to the annual tariff adjustment of the Company. Page 59 of 97

71 Quarterly information (ITR) - 9/30/ Version: 1 b) Remuneration of the key management personnel The management remuneration (Board of Directors, Statutory Audit Committee and Executive Board) is presented below: Description September 30, 2013 Parent company September 30, 2012 September 30, 2013 Consolidated September 30, 2012 Management Fees 4,750 4,645 4,751 5,259 Profit sharing Social charges 1,414 1,110 1,420 1,437 Other ,377 5,846 6,387 7, Investments in subsidiaries and associates Description September 30, 2013 Parent company December 31, 2012 September 30, 2013 Consolidated December 31, 2012 Subsidiaries Celesc D 1,335,926 1,219, Celesc G 300, , ,636,746 1,467, Jointly-controlled subsidiaries SCGÁS 81,531 78,876 81,531 78,876 ECTE 36,923 36,448 36,923 36, , , , ,324 Associated companies DFESA 29,419 32,535 29,419 32,535 SPECIFIC PURPOSE ENTITIES ,139 20,203 Cubatão 3,353 3,353 3,353 3,353 (-) Provision for loss on investment (3,353) (3,353) (3,353) (3,353) 29,419 32,535 62,558 52,738 1,784,619 1,615, , , (SPE) Page 60 of 97

72 Quarterly information (ITR) - 9/30/ Version: 1 a) Information on investments Description Thousands of shares held by the Company's interest Company Common Share capital Voting capital Adjusted equity Total assets Parent company Adjusted net profit/loss At September 30, 2013 Celesc D 630, % 100% 1,335,926 5,032, ,417 Celesc G 43, % 100% 300, ,934 38,492 ECTE 13, % 30.88% 119, ,163 24,352 SCGÁS 45,476 17% 51% 216, ,582 22,093 Dfesa 153, % 23.03% 127, ,596 26,469 Cubatão 1,600 40% 40% 1,649 5,620 - At December 31, 2012 Celesc D 630, % 100% 1,219,509 4,729,287 (135,659) Celesc G 43, % 100% 247, ,821 (70,380) ECTE 13, % 30.88% 118, ,362 40,574 SCGÁS 45, % 199, ,539 23,609 Dfesa 153, % 23.03% 141, ,994 35,385 Cubatão 1,600 40% 40% 1,649 5,620 (7) Description Thousands of shares held by the Company Common Company's interest Share capital Voting capital Adjusted equity Total assets Consolidated Adjusted net profit/loss At September 30, 2013 ECTE 13, % 30.88% 119, ,163 24,352 SCGÁS 45,476 17% 51% 216, ,582 22,093 Dfesa 153, % 23.03% 127, ,596 26,469 Cubatão 1,600 40% 40% 1,649 5,620 (7) Rondinha Energética S.A. 19, % 32.50% 60,843 75,998 (32) Painel Energética S.A. 4, % 32.50% 5,466 5,467 (18) Campo Belo Energética S.A. 1,827 30% 30% 6,089 6,440 (30) Cia Energética Rio das Flores 7,088 25% 25% 31,132 65, Xavantina Energética S.A % 40% 2,490 2,525 - At December 31, 2012 ECTE 13, % 30.88% 118, ,362 40,574 SCGÁS 45,476 17% 51% 199, ,539 23,609 Dfesa 153, % 23.03% 141, ,994 35,385 Cubatão 1,600 40% 40% 1,649 5,620 (7) Rondinha Energética S.A. 9, % 32.50% 27,783 28,630 (314) Painel Energética S.A. 4, % 32.50% 5,408 5,457 (34) Campo Belo Energética S.A. 1,350 30% 30% 4,015 6,648 (29) Cia Energética Rio das Flores 5,930 25% 25% 24,712 52, Xavantina Energética S.A % 40% 2,490 2,517 - Page 61 of 97

73 Quarterly information (ITR) - 9/30/ Version: 1 b) Changes in investments Parent company Description Celesc D Celesc G ECTE SCGÁS DFESA Total At December 31, ,219, ,966 36,448 78,876 32,535 1,615,334 Capital increases - 14, ,000 Dividends credited - - (7,046) - (9,212) (16,258) Amortization of goodwill (1,101) - (1,101) Equity in the results of investees 116,417 38,492 7,521 3,756 6, ,282 Carrying value adjustments in subsidiary At September 30, ,335, ,820 36,923 81,531 29,419 1,784,619 Description ECTE SCGÁS DFESA SPECIFIC PURPOSE ENTITIES (SPE) Consolidated Total At December 31, ,448 78,876 32,535 20, ,062 Capital increases ,545 12,545 Dividends credited (7,046) - (9,212) - (16,258) Amortization of goodwill - (1,101) - - (1,101) Equity in the results of investees 7,521 3,756 6, ,402 Carrying value adjustments in subsidiary At September 30, ,923 81,531 29,419 33, ,012 Page 62 of 97

74 Quarterly information (ITR) - 9/30/ Version: Property, plant and equipment a) Analysis of the balance Description Land Reservoirs, dams and water mains Buildings and construction Machinery and equipment Other Constructio n in progress Consolidated Total At December 31, ,202 76,655 2,942 18, , ,293 Cost of PP&E 20, ,024 13,012 65,333 1, , ,101 Provision for losses (10,834) (89,072) (2,880) (20,922) (132) - (123,840) Accumulated depreciation - (19,297) (7,190) (25,816) (665) - (52,968) At December 31, ,202 76,655 2,942 18, , ,293 Additions ,768 10,768 Write-offs (622) (622) Depreciation - (28,939) (1,097) (7,199) (126) - (37,361) Realization of provision for losses - 16, , ,126 Transfers (4) - At September 30, ,202 64,368 2,456 15, , ,204 Cost of PP&E 20, ,024 13,012 65,337 1, , ,247 Provision for losses (10,834) (72,420) (2,269) (17,096) (95) - (102,714) Accumulated depreciation - (48,236) (8,287) (33,015) (791) - (90,329) At September 30, ,202 64,368 2,456 15, , , Intangible assets Description December 31, 2012 Amortization Parent company September 30, 2013 ECTE Concession Agreement 8,523 (45) 8,478 Page 63 of 97

75 Quarterly information (ITR) - 9/30/ Version: 1 Consolidated Concession agreements (a) Description Celesc D Software acquired Goodwill Total At December 31, ,953 2,721 8, ,197 Total cost 933,846 2,721 14, ,815 Accumulated amortization (569,893) - (5,725) (575,618) At December 31, ,953 2,721 8, ,197 Additions 26,457 2,082-28,539 Write-offs (4,080) - - (4,080) Amortization (116,962) (408) (45) (117,415) At September 30, ,368 4,395 8, ,241 Total cost 956,223 4,803 14, ,274 Accumulated amortization (686,855) (408) (5,770) (693,033) At September 30, ,368 4,395 8, ,241 The goodwill arising from the acquisition of ECTE is being amortized over the term of the public utility concessions of this company. a) Concession agreements In conformity with Technical Interpretation ICPC 01, Accounting for Concessions, the portion of infrastructure that will be utilized during the concession, comprised of electric energy distribution assets, net of consumer shares (special obligations), where applicable, was recorded in intangible assets. ANEEL, in conformity with Brazilian regulations, is responsible for establishing the economic useful lives of the concession assets in the electric energy sector, and for determining a procedure for the periodic review of these rates. The rates established by the regulator are utilized in the tariff revision processes and in the calculation of the indemnity at the end of the concession period. Therefore, the rate used as a basis for the estimate and amortization of the intangible asset was 3.75% in the last tariff revision (August 2012). Page 64 of 97

76 Quarterly information (ITR) - 9/30/ Version: Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) a) Analysis of deferred income tax and social contribution, net Description Consolidated Deferred tax assets Deferred tax liabilities Net September 30, 2013 December 31, 2012 September 30, 2013 December 31, 2012 September 30, 2013 December 31, 2012 Temporary differences Provision for contingencies 115,656 95, ,656 95,119 Provision for losses on assets 82,935 93, ,935 93,627 Post-employment benefits 310, , , ,979 Deemed cost ,171 70,510 (58,171) (70,510) Deferred income tax and social contribution on tax loss 19,250 33, ,250 33,745 Other provisions 98,703 92, , ,483 (34,462) (21,189) 627, , , , , ,771 September 30, 2013 Consolidated December 31, 2012 Assets 459, ,175 Liabilities (23,248) (28,404) Deferred tax assets, net 435, ,771 Page 65 of 97

77 Quarterly information (ITR) - 9/30/ Version: 1 b) Reconciliation of the deferred and current income tax and social contribution The reconciliation between income tax and social contribution expense at the nominal and effective rates is shown below: Description September 30, 2013 Parent company September 30, 2012 September 30, 2013 Consolidated September 30, 2012 Profit before IRPJ and CSLL 149,553 (119,960) 219,761 (169,149) Combined IRPJ and CSLL standard rate 34% 34% 34% 34% IRPJ and CSLL 50,848 (40,786) 74,719 (57,511) Permanent additions and deductions Equity in the results of investees (58,576) 37,202 (5,907) (4,876) Tax benefit ,627 Tax incentive Non-deductible provisions - - (6,782) - Non-deductible fines - - 7,297 6,415 Depreciation/Write-off - VNR ,511 - Management remuneration Voluntary Termination Plan (PDV) - - (24,293) - Adjustment due to adoption of CPC 33 (R1) - - (21,622) - Tax loss - - (19,250) - Other additions/deductions 7,495 5,823 1,266 3,608-2,501 70,208 (46,688) Current - - (40,334) (7,279) Deferred - (2,501) (29,874) 53,967 - (2,501) (70,208) 46,688 Effective rate 0% 2.08% % % 17. Trade payables Description September 30, 2013 Consolidated December 31, 2012 Electric energy 377, ,165 Charges for the use of the electric 28,384 energy network 55,048 Material and services 40,855 75, , ,281 Page 66 of 97

78 Quarterly information (ITR) - 9/30/ Version: Borrowings The borrowing agreements are mainly collateralized by the receivables of the Companies. a) Bank loans Description Annual interest rate and commissions % September 30, 2013 Consolidated December 31, 2012 Bank loans (a) 7.55 p.a. 200, ,682 Eletrobrás (b) 5.00 p.a. 185, ,260 Finame (c) 2.5 to 8.7 p.a. 38,601 38, , ,110 Current 203,464 81,064 Non-current 220, ,046 For the purpose of meeting Celesc D's requirements, the Board of Directors authorized, at the meeting held on October 17, 2012, the raising of funds for working capital in the amount of R$ 110 thousand. The loan is subject to an interest rate of 7.55% p.a., and is repayable in 18 months, with a grace period of 12 months. This agreement is collateralized by receivables and has been approved by ANEEL. On January 17, 2013, the Board of Directors authorized the raising of funds for the working capital of Celesc D in the amount of R$ 89 thousand. The loan is subject to an interest rate of 7.55% p.a., and is repayable in 24 months, with a grace period of 15 months. b) Eletrobrás The amounts contracted from the Brazilian Electricity Company (Eletrobras) are destined, among other utilizations, to the rural electrification and other programs, using funds from the Global Reversion Reserve (RGR) and the Eletrobras Financing Fund. In general, these agreements have a grace period of 24 months, are repayable in periods of 60 months, with some period exceeding 96 months, are subject to an interest rate of 5% p.a. plus an administration fee of 2% p.a., and are collateralized by receivables. The contracts have been approved by ANEEL. c) Finame The loan contracted was destined to the purchase of machinery and equipment of Celesc D and has interest rates from 2.5% p.a. to 8.7% p.a. As approved by ANEEL, the receivables of Celesc D are pledged as collateral in the event of default. Page 67 of 97

79 Quarterly information (ITR) - 9/30/ Version: Composition of long-term maturities The maturities of non-current amounts classified in liabilities are as follows: Description September 30, 2013 Consolidated December 31, 2012 From one to five years 187, ,963 Over five years 32,808 19, , , Debentures The issue of 30 thousand debentures non-convertible into shares at unit value of R$ 10, for legal purposes and effects, was on May 15, It matures over 72 months as from the issue dates, therefore its maturity will be held on May 15, Amortization will be in three annual and consecutive installments, the first of which payable as from the 48th month after the date of issue, that is, on May 15, 2017 and the remuneration will be paid in semi-annual and consecutive installments, with no grace period, as from the issue date. The funds from this issue are destined exclusively for reinforcement of the working capital and realization of investments. Debentures will be entitled to the payment of interest corresponding to 100% of the accumulated variation of the daily average rates of Interbank Deposits (DI), "over extra-group", expressed in percentage per annum, on the basis of 252 business days, calculated and disclosed on a daily basis by the Clearing House for the Custody and Financial Settlement of Securities (CETIP), plus a surtax or spread of 1.30%. Debentures have a covenant that defines the presentation of a ratio between Net Debt/EBITDA above 2, as from Description Consolidated At December 31, New borrowings 300,000 Monetary restatement 10,434 Costs on the issue of debentures (2,054) At September 30, ,380 Current 10,069 Non-current 298,311 Page 68 of 97

80 Quarterly information (ITR) - 9/30/ Version: Taxes and contributions a) Composition Parent company Consolidated Description September 30, 2013 December 31, 2012 September 30, 2013 December 31, 2012 ICMS ,895 45,005 PIS and COFINS ,255 22,747 Tax Recovery Program (REFIS) 469 1, ,786 IRPJ and CSLL ,332 10,921 INSS payable in installments - - 2,653 3,150 Other ,071 6, , ,675 89,766 Current 543 1, ,675 89,725 Non-current Regulatory charges Description September 30, 2013 Consolidated December 31, 2012 Energy Efficiency Program (PEE) 160, ,818 Emergency Capacity Charge (ECE) 58,439 53,329 Fuel Consumption Account (CCC) - 12,609 Research and development - P&D 69,339 68,104 Energy Development Account (CDE) 4,838 17,323 Consumer charges payable - 2,336 Global Reversion Reserve (RGR) Other 1,055 1, , ,075 Current 72, ,891 Non-current 221, , Provision for contingencies and judicial deposits The Company had the following liabilities and related judicial deposits at the dates of the Quarterly Information related to contingencies: Page 69 of 97

81 [ Quarterly information (ITR) - 9/30/ Version: 1 Parent company Description Judicial deposits Provision for contingencies September 30, 2013 December 31, 2012 September 30, 2013 December 31, 2012 Contingencies: Tax 2,154 2,182 1,263 1,263 Regulatory 6,627 6,627 6,627 6,627 Judicially frozen assets ,611 8,809 7,890 7,890 Consolidated Description Judicial deposits Provision for contingencies September 30, 2013 December 31, 2012 September 30, 2013 December 31, 2012 Contingencies: Tax 3,782 3,722 29,522 29,525 Labor 49,879 61,118 72,760 44,822 Civil 30,818 28, , ,734 Regulatory 46,405 46,405 44,813 35,564 Judicially frozen assets , , , ,645 The changes in the provision for contingencies and judicial deposits were as follows: Parent company Description Judicial deposits Provision for contingencies Judicial deposits Consolidated Provision for contingencies At December 31, ,809 7, , ,645 Additions ,351 86,302 Write-offs (28) - (29,260) (24,722) At September 30, ,611 7, , ,225 The Company is a party to labor, civil, tax and regulatory lawsuits in progress, and is discussing such matters at the administrative and judicial levels, which, when applicable, are supported by judicial deposits. The provisions for probable losses arising from these lawsuits are estimated and periodically adjusted by management, supported by the opinion of its internal and external legal advisors. The nature of the contingencies can be summarized as follows: a) Tax contingencies These contingencies relate to federal, state and municipal taxes. Page 70 of 97

82 Quarterly information (ITR) - 9/30/ Version: 1 b) Labor contingencies These contingencies refer to claims filed by current and former employees of the Group and service providers related to termination amounts, salaries, classification of functions and other matters. The main increase in the labor provisions during the year refers to the lawsuit filed by the Public Prosecution Office against Celesc D in respect to outsourcings. The lawsuit is in the fact-finding phase and amounts to R$ 30 thousand. The internal legal advisors of Celesc D understand that it is probable that the lawsuit will have an unfavorable outcome. c) Civil contingencies These contingencies relate to lawsuits filed by consumers (industrial class action), demanding the reimbursement of amounts paid on account of the increase in electric energy tariffs, based on Ordinances 38, of February 27, 1986, and 45, of March 4, 1986, of the National Department of Water and Electricity (DNAEE), during the government's "Cruzado" economic plan. Celesc D recorded a provision which was considered to be sufficient to cover the expected losses from lawsuits of this nature. As regards the effect on subsequent years, referred to as a "Cascading Effect", it is not currently possible to evaluate the possible decisions of the Judiciary Branch or to estimate their effects. Provisions for several civil lawsuits filed by individuals and legal entities were also set up. Celesc D is a defendant in them with regard to indemnity resulting from failure in the electric energy network (pecuniary damages, pain and suffering and loss of profits), expropriation, power cut (pain and suffering and pecuniary damages), accident (pain and suffering, pecuniary damage and pension), improper register in SERASA/ Credit Protection Service (SPC) (pain and suffering), among others. d) Regulatory contingencies Celesc D was fined by ANEEL in certain administrative proceedings due to the alleged noncompliance with quality standards in relation to the services rendered to consumers and other issues. Celesc D lodged an appeal at the administrative level against the penalties imposed. e) Possible losses not provided for In addition, the Company is a party to tax, labor and civil lawsuits, presented below, for which an unfavorable outcome is regarded as possible by management, based on the opinion of its legal advisors, and for which no provision has been recorded: Page 71 of 97

83 Quarterly information (ITR) - 9/30/ Version: 1 Description September 30, 2013 Consolidated December 31, 2012 Contingencies: Tax 2,055 2,173 Labor 1,710 3,213 Civil 21,842 15,870 Regulatory 15,182 15,710 40,789 36, Actuarial liability Consolidated September December Obligations recorded 30, 31, Pension plans 1,015,958 1,008,435 Mixed/Transitory plan (a) 1,015,958 1,008,435 Other employee benefits 397, ,955 Celos Health Plan (b) 108, ,293 Voluntary Termination Plan With Incentives - (PDVI) (c) 19,799 34,882 Voluntary Termination Plan (PDV) (d) 237, ,814 Other benefits (e) 31,495 30,966 1,413,557 1,487,390 Current 178, ,960 Non-current 1,234,808 1,356,430 Celesc D sponsors Fundação Celesc de Seguridade Social ("Celos"), a non-profit pension entity, whose main objective is to grant benefits in addition to those provided by the National Institute of Social Security to the plan participants, mainly its own employees. a) Pension plans In January 1997, a new supplementary pension plan was implemented, of a variable contribution type, referred to as the "Mixed Plan", with a view to providing programmed retirement income for new employees. The employees enrolled in the Transitory Plan were offered the opportunity to migrate to the Mixed Plan. This migration occurred in two periods: from May to August 1999 and in February More than 98% of active employees opted for migration. Page 72 of 97

84 Quarterly information (ITR) - 9/30/ Version: 1 The Mixed Plan has the characteristics of a defined benefit plan for the portion of the mathematical reserve existing on the migration date, and of a defined contribution plan for the contributions made after the migration. The previous defined benefit plan, called the "Transitory Plan", still exists, covering almost exclusively retired participants and their beneficiaries. Celesc D signed an agreement on November 30, 2001 for the payment of 277 additional monthly contributions, bearing interest of 6% per year and restatement based on the General Market Price Index (IGP-M), to cover the actuarial liability of the Mixed and Transitory Plans. In October 2010, an amendment altered the inflation index from the General Market Price Index (IGP-M) to the Amplified Consumer Price Index (IPCA). b) Celos Health Plan ("Plano Celos Saúde") Celesc D offers to its current and retired employees a health care plan (medical, hospital and dental care). c) Voluntary Termination Plan with Incentives (PDVI) Through Resolution 243, of December 9, 2002, Celesc D approved the Voluntary Termination Plan with Incentives (PDVI), ratified by the Government of the State of Santa Catarina, the purpose of which was to reduce operating costs. This program was implemented in January 2003, with the enrollment of 1,089 employees. By September 30, 2013, Celesc D had settled its obligations to 928 beneficiaries (870 at December 31, 2012). d) Voluntary Termination Plan (PDV) Through Resolution 168, of May 15, 2012, Celesc D approved the Workforce Adequacy Plan (PAQ), of which the Voluntary Termination Plan (PDV) is part. This program was implemented in November 2012, with the enrollment, at first, of 734 employees. Up to June 2013, 19 more employees had enrolled with the program, totaling 753. By June 30, 2013, 753 beneficiaries had left Celesc D (432 at December 31, 2012). By September 30, 2013, Celesc D had settled its obligations to 91 beneficiaries. Page 73 of 97

85 Quarterly information (ITR) - 9/30/ Version: 1 e) Other benefits These are amounts referring to the disability allowance, funeral grant, natural or accidental death benefit and retirement minimum benefit. 24. Equity a) Share capital The Company's subscribed and paid-up share capital is R$ 1,017,700, represented by 38,571,591 shares with no par value, divided into 15,527,137 registered common shares (40.26%) with voting rights and 23,044,454 registered preferred shares (59.74%). Preferred shares have priority in the payment of non-cumulative dividends of 25%. The Company's shareholding structure, in terms of the number of shares held by the stockholders with more than 5% of any share type or class, is as follows: Stockholder Common shares Preferred shares Total Number % Number % Number % Government of the State of Santa Catarina 7,791, ,791, PREVI 5,140, , ,578, Celos 1,333, , ,564, Geração Futuro investment fund 257, ,453, ,711, Centrais Elétricas Brasileiras - Eletrobras 4, ,142, ,147, Tarpon Investment Fund - - 5,177, ,177, MCAP Poland FIA - - 2,828, ,828, Other 999, ,772, ,772, Total 15,527, ,044, ,571, b) Carrying value adjustments The table below demonstrates the net effect of R$ 4,475 in Net Equity: Carrying value adjustments (4,475) Deemed Cost - Celesc G 113,283 Actuarial liability adjustment - Celesc D (CPC - 33) (117,758) c) Diluted earnings or losses per share The calculation of the basic and diluted earnings per share at September 30, 2013 and 2012 was based on the net profit for the period and the weighted average number of outstanding common and preferred shares during the periods presented. Page 74 of 97

86 Quarterly information (ITR) - 9/30/ Version: 1 At September 30, 2013 and September 30, 2012, the number of shares of the Company did not change. There were no transactions involving common shares or potential common shares between the balance sheet date and the date of completion of this quarterly information. In the quarters ended September 30, 2013 and 2012, the Company did not have instruments convertible into shares that would generate an impact of dilution in earnings per share. d) Analysis of the basic and diluted earnings: September 30, 2013 Parent company September 30, 2012 Weighted average number of shares (in thousands): Registered common shares - ON 15,527 15,527 Registered preferred shares - PN 23,044 23,044 Basic and diluted earnings/losses per share attributed to the Company's stockholders (in R$): Registered common shares - ON (2.9959) Registered preferred shares - PN (3.2955) Basic and diluted earnings/losses attributed to the Company's stockholders (in R$): Registered common shares - ON 56,809 (46,518) Registered preferred shares - PN 92,744 (75,943) 149,553 (122,461) 25. Insurance The insurance policies contracted at September 30, 2013 indicate the following levels of coverage: Consolidated Company Line Insured assets Term Insured amount Celesc D Surety Insurance Concessionaire assets and rights to ,000 Celesc D Nominated risks Head Office building 1/1/2013 to 1/1/ ,360 Celesc D Domestic Transportation Transportation of goods to ,000 Celesc D Nominated risks Substations to ,000 Celesc G Fire/lightning/explosion Plants and substations to ,768 Celesc G Aircraft Crash Plants and substations to ,384 Celesc G Windstorm Plants and substations to ,384 Celesc G Electrical damage Plants and substations to ,768 Page 75 of 97

87 Quarterly information (ITR) - 9/30/ Version: Segment information Management has determined the Group's operating segments based on the reports reviewed by the Executive Board to make strategic decisions. The presentation of the segments is consistent with the internal reports submitted to the Company's Executive Board, which is responsible for allocating funds to, and evaluating the performance of, the segments. The segment information reviewed by the Executive Board for the nine-month period ended September 30, 2013 and 2012 is as follows: Description Parent company Celesc D Celesc G Consolidation adjustments September 30, 2013 Total Net Operating Revenue (NOR) - 3,484,090 73,310 (1,370) 3,556,030 Cost of sales - (2,836,701) (24,287) 1,370 (2,859,618) Gross profit - 647,389 49, ,412 Selling expenses - (181,713) (283) - (181,996) General and administrative expenses (25,515) (230,311) (6,866) - (262,692) Other income (expenses), net - (91,279) (2,755) - (94,034) Equity in the results of investees 172, (154,909) 17,402 Operating profit 146, ,086 39,148 (154,909) 175,092 Finance income 3, ,786 1, ,767 Finance costs (1,160) (79,915) (23) - (81,098) Net finance result 2,786 40,871 1,012-44,669 Profit (loss) before taxation 149, ,957 40,160 (154,909) 219,761 IRPJ and CSLL - (68,540) (1,668) - (70,208) Profit (loss) for the period 149, ,417 38,492 (154,909) 149,553 Supplementary information Total assets 1,938,606 5,032, ,934 Total liabilities 11,358 3,696,523 39,114 Page 76 of 97

88 Quarterly information (ITR) - 9/30/ Version: 1 Description Parent company Celesc Distribuição Celesc Geração At September 30, 2012 Consolidation Total adjustments Net Operating Revenue (NOR) - 3,075,107 49,808 (1,739) 3,123,176 Cost of sales - (2,731,183) (15,450) 1,650 (2,744,983) Gross profit - 343,924 34,358 (89) 378,193 Selling expenses - (118,564) (1,757) - (120,321) General and administrative expenses (16,668) (450,065) (10,581) 1,589 (475,725) Other income (expenses), net - 4,728 (7,134) (1,500) (3,906) Equity in the results of investees (109,419) - (1,306) 123,763 13,038 Operating profit (126,087) (219,977) 13, ,763 (208,721) Finance income 7,275 86,460 1,242-94,977 Finance costs (1,148) (53,989) (268) - (55,405) Net finance result 6,127 32, ,572 Profit (loss) before taxation (119,960) (187,506) 14, ,763 (169,149) IRPJ and CSLL (2,501) 55,059 (5,870) - 46,688 Profit (loss) for the period (122,461) (132,447) 8, ,763 (122,461) Supplementary information Total assets 2,160,437 4,280, ,600 Total liabilities 14,193 2,824,860 87, Consolidated operating revenue Consolidated September 30, 2013 September 30, 2012 Gross operating revenue Electric energy supply (a) 3,713,465 4,371,293 Provision of electric energy (a) 109, ,095 Availability of the electric power grid 147, ,934 Short-term electric power 491,063 3,540 Leases and rentals 32,601 31,233 Service income 2,957 5,150 Other operating revenue 8,813 8,635 Donations and subsidies (i) 221, Construction revenue 199, ,071 4,926,846 5,010,527 Deductions from gross operating revenue ICMS (849,517) (1,008,446) PIS (76,572) (82,242) COFINS (352,696) (365,627) ISS (114) (206) Global Reversion Reserve (RGR) (4,256) (35,900) Energy Development Account (CDE) (43,544) (155,908) Fuel Consumption Account (CCC) (12,610) (201,326) Research and Development (R&D) (16,138) (14,499) Energy Efficiency Program (PEE) (15,369) (14,499) Other charges - (8,698) (1,370,816) (1,887,351) Net Operating Revenue (NOR) 3,556,030 3,123,176 Page 77 of 97

89 Quarterly information (ITR) - 9/30/ Version: 1 (i) Amount transferred by Eletrobrás, referring to the reimbursement of the discounts on tariffs applicable to the users of the electric energy distribution utilities, according to art. 13, item VII, of Law 10,438, of April 26, 2002, as established by Provisional Measure 605, of January 23, 2013, and in compliance with the provision in art. 3 of Decree 7,891, of January 23, ANEEL paid in advance the installments referring to the periods from May to November 2013, in the amount of R$ 186,369, which are being recorded in "Other current liabilities" and are allocated to income or loss, as appropriate. a) Electric energy supply The analysis of gross revenue from electric energy supply, by consumer class, is as follows: Number of consumers (i) MWh (i) Gross revenue Description 9/30/2013 9/30/2012 9/30/2013 9/30/2012 9/30/2013 9/30/2012 Residential 1,989,180 1,916,645 3,677,392 3,501,856 1,256,709 1,470,113 Industrial 96,145 90,256 3,464,929 3,700,785 1,126,634 1,371,377 Commercial 228, ,018 2,521,671 2,456, ,044 1,027,560 Rural 230, , , , , ,635 Government 20,610 19, , , , ,332 Public lighting , ,439 78,568 90,214 Utilities 2,568 2, , ,972 64,618 72,062 Total supply 2,568,312 2,479,188 11,489,846 11,445,292 3,713,465 4,371,293 Provision of electric energy ,060,267 1,204, , ,095 Total 2,568,371 2,479,249 12,550,113 12,650,171 3,823,200 4,479,388 (i) Information not reviewed Consolidated operating costs and expenses Consolidated operating costs and expenses are comprised as follows: Description Costs of assets and/or services General and administrative expenses Selling expenses Consolidated as at September 30, 2013 Other expenses/ income, net Total Electric energy purchased for resale (a) 2,265, ,265,830 Personnel (b) 210,199 79,164 26,875 11, ,926 Management - 6, ,387 Actuarial expenses - 74, ,130 Private pension entity (b) 11,473 3,394 1,389-16,256 Material 8,726 4, ,749 Construction cost 199, ,306 Third-party costs and services 47,507 58,056 52, ,257 Depreciation and amortization 130,532 24, ,646 Provisions, net (21,126) - 13,701 61,580 54,155 ANEEL inspection fees ,567 7,567 Financial compensation for use of water resources Other costs and expenses 7,171 13,426 87,811 11, ,355 2,859, , ,996 94,034 3,398,340 Page 78 of 97

90 Quarterly information (ITR) - 9/30/ Version: 1 Description Costs of assets and/or services General and administrative expenses Selling expenses Consolidated as at September 30, 2012 Other expenses/ income, net Electric energy purchased for resale (a) 2,148, ,148,014 Personnel (b) 217, ,208 28,377 41, ,280 Management - 6, ,744 Actuarial expenses - 41, ,054 Private pension entity (b) 12,116 3,820 1,523-17,459 Material 12,053 4, ,883 Construction cost 215, ,071 Third-party costs and services 41,916 48,758 41, ,501 Depreciation and amortization 90,178 29, ,351 Provisions, net ,760 (54,641) (20,094) ANEEL inspection fees ,266 8,266 Financial compensation for use of water Total resources Other costs and expenses 8,053 4,359 15,301 7,862 35,575 2,744, , ,321 3,906 3,344,935 a) Electric energy purchased for resale Description September 30, GWh (i) September 30, GWh (i) Centrais Elétricas Brasileiras S.A. - Eletrobrás 368,487 3, ,031 3,349 Tractebel Energia S.A. 294,889 1, ,595 2,020 Centrais Elétricas de Pernambuco S.A. 130, , Termoelétricas Petrobrás S.A. 180, , Companhia Energética de Petrolina - CEP 107, , Cia Hidroelétrica do São Francisco - CHESF , Serra do Facão Energia S.A. 11, , Energética Camacari Muricy S.A. - ECM 97, , Furnas Centrais Elétricas S.A. 142,459 1, ,676 1,267 Arembepe Energia S.A 95, , Cemig Geração e Transmissão S.A. 112, , Companhia Energética Potiguar 65, Companhia Energética de São Paulo - CESP 85, , Copel Geração e Transmissão S.A. 84, , Energética Suape II S.A. 47, , Eletrobrás Termonuclear S.A. 61, Enguia Gen Ba Ltda - Jaguarari 32, Porto do Pecem Geração de Energia 48, Usina Xavantes S.A - Aruanã 20, Lages Bioenergética Ltda. 30, , Foz do Chapecó Energia AS 23, , Brentech Energia S.A. 16, Companhia Energética Estreito 23, , Usina Termelétrica de Anápolis Ltda. 14, Candeias Energia S.A. 10, UTE Porto do Itaqui Geração de Energia 34, Cia de Ger. Term. de E.E. - Eletrobrás CGTEE 18, , Centrais Elétricas Cachoeira Dourada S.A , Santo Antônio Energia S.A 17, Other 152,456 2, ,580 1,696 2,327,918 14,008 1,492,470 13,806 Page 79 of 97

91 Quarterly information (ITR) - 9/30/ Version: 1 Description September 30, GWh (i) September 30, GWh (i) Charges for the use of the electric energy network 347, ,926 - Electric Energy Trade Chamber (CCEE) 221, ,140 - Proinfa 84,970-77, Recovery of expenses (715,908) (62,088) - 655, ,265,830 14,008 2,148,014 14,110 (i) Information not reviewed b) Personnel and private pension entity Description September 30, 2013 Parent company September 30, 2012 September 30, 2013 Consolidated September 30, 2012 Personnel Remuneration 12,359 9, , ,078 Social charges ,112 73,220 Profit sharing - - 8,948 7,474 Fringe benefits ,878 19,529 Provisions and indemnities ,056 87,733 Voluntary Termination Plan (PDV) ,134 Other Private pension entity ,256 17,459 12,569 9, , , Finance result Description September 30, 2013 Parent company September 30, 2012 September 30, 2013 Consolidated September 30, 2012 Finance income Income from investments 1,412 2,279 16,248 17,755 Interest on receivables Interest on electric energy bills paid in arrears ,852 42,973 Monetary variations ,605 7,274 Financial incentive social fund ,050 12,450 Discounts - suppliers Foreign exchange gain on electric energy sold - - 3,950 5,851 Dividends Finance income from VNR ,668 - Other finance income 1,936 4,150 7,759 7,629 3,946 7, ,767 94,977 Finance costs Debt charges - - (23,090) (19,167) Monetary variation and increase for payment in arrears of electric energy - - (12,991) (10,656) Monetary variations - - (1,865) (644) Amortization of goodwill (1,146) (1,146) (1,146) (1,146) Page 80 of 97

92 Quarterly information (ITR) - 9/30/ Version: 1 Description September 30, 2013 Parent company September 30, 2012 September 30, 2013 Consolidated September 30, 2012 Research and development and energy efficiency restatement - - (12,527) (14,908) Finance cost from VNR - - (6,276) - Interest and costs with debentures - - (10,434) - Other finance costs (14) (2) (12,769) (8,881) (1,160) (1,148) (81,098) (55,405) Finance result 2,786 6,127 44,669 39, Supplementary information on Celesc D Balance sheet September 30, 2013 December 31, 2012 Assets Current assets 1,601,467 1,257,087 Cash and cash equivalents 790, ,357 Marketable securities - 16,343 Trade receivables 673, ,036 Inventories 12,361 14,748 Taxes recoverable 73,264 88,841 Other receivables 52,310 25,762 Non-current assets 3,430,982 3,472,200 Indemnifiable assets (concession) 2,571,447 2,390,674 Trade receivables 6, ,442 Deferred taxes 435, ,379 Taxes recoverable 23,444 13,995 Judicial deposits 122, ,734 Other receivables 2,581 2,023 Intangible assets 269, ,953 Total assets 5,032,449 4,729,287 September 30, 2013 December 31, 2012 Liabilities and equity Current liabilities 1,240,162 1,286,531 Trade payables 442, ,676 Borrowings 203,464 81,064 Debentures 10,069 - Salaries, labor provisions and payroll charges 122, ,777 Taxes and contributions 105,276 77,640 Regulatory charges 72, ,685 Pension plan 9,776 14,538 Actuarial liability 178, ,960 Page 81 of 97

93 Quarterly information (ITR) - 9/30/ Version: 1 September 30, 2013 December 31, 2012 Liabilities and equity Other liabilities 95,680 47,191 Non-current liabilities 2,456,361 2,223,247 Borrowings 220, ,046 Debentures 298,311 - Regulatory charges 221, ,184 Actuarial liability 1,234,808 1,356,430 Provision for contingencies 478, ,112 Other liabilities 2,475 2,475 Equity 1,335,926 1,219,509 Paid-up share capital 1,053,590 1,053,590 Carrying value adjustments (117,758) (117,758) Retained earnings (accumulated deficit) 116,417 - Revenue reserves 283, ,677 Total liabilities and equity 5,032,449 4,729, Statement of operations for the year September 30, 2013 September 30, 2012 Net Operating Revenue (NOR) 3,484,090 3,075,107 Revenue from electric energy services 3,284,784 2,860,036 Construction revenue 199, ,071 Operating costs (2,836,701) (2,731,183) Cost of electric energy services (2,637,395) (2,516,112) Construction cost (199,306) (215,071) Gross operating profit 647, ,924 Operating expenses (503,303) (563,901) Selling expenses (181,713) (118,564) General and administrative expenses (230,311) (450,065) Other operating expenses (91,279) 4,728 Service result 144,086 (219,977) Finance result 40,871 32,471 Finance income 120,786 86,460 Finance costs (79,915) (53,989) Profit before taxation 184,957 (187,506) IRPJ and CSLL (68,540) 55,059 Current (33,511) - Deferred (35,029) 55,059 Profit (loss) for the quarter 116,417 (132,447) Page 82 of 97

94 Quarterly information (ITR) - 9/30/ Version: Operating revenue September 30, 2013 September 30, 2012 Gross operating revenue Electric energy supply (a) 3,677,351 4,340,125 Provision of electric energy (a) 79,927 82,606 Availability of the electric power grid 149, ,584 Short-term electric power 469,514 - Leases and rentals 32,601 31,322 Service income 2,957 5,150 Taxed service 8,574 8,427 Other operating revenue Donations and subsidies 221, Construction revenue 199, ,071 4,840,745 4,952,069 Deductions from gross operating revenue ICMS (842,999) (1,003,534) PIS (75,344) (81,374) COFINS (347,039) (361,248) ISS (114) (206) Global Reversion Reserve (RGR) (3,498) (35,670) Energy Development Account (CDE) (43,544) (155,908) Fuel Consumption Account (CCC) (12,610) (201,326) Research and Development (R&D) (16,138) (14,499) Energy Efficiency Program (PEE) (15,369) (14,499) Other charges - (8,698) (1,356,655) (1,876,962) Net Operating Revenue (NOR) 3,484,090 3,075,107 a) Electric energy supply The analysis of gross revenue from electric energy supply, by consumer class, is as follows: Number of consumers (i) MWh (i) Gross revenue Description 9/30/2013 9/30/2012 9/30/2013 9/30/2012 9/30/2013 9/30/2012 Residential 1,989,180 1,916,645 3,677,392 3,501,856 1,256,709 1,470,113 Industrial 96,138 90,241 3,319,421 3,496,427 1,098,703 1,341,648 Commercial 228, ,017 2,480,426 2,448, ,861 1,026,121 Rural 230, , , , , ,635 Government 20,610 19, , , , ,332 Public lighting , ,439 78,568 90,214 Utilities 2,568 2, , ,972 64,618 72,062 Total supply 2,568,304 2,479,172 11,303,093 11,232,167 3,677,351 4,340,125 Provision of electric energy , ,627 79,927 82,606 Total 2,568,356 2,479,218 12,265,485 12,162,794 3,757,278 4,422,731 (i) Information not reviewed Page 83 of 97

95 Quarterly information (ITR) - 9/30/ Version: Operating costs and expenses Description Costs of assets and/or services General and administrative expenses Selling expenses Other expenses/ income, net September 30, 2013 Electric energy purchased for resale 2,264, ,264,227 Personnel 206,253 61,991 26,592 11, ,524 Management Actuarial expenses - 74, ,130 Private pension entity 11,473 3,394 1,389-16,256 Material 8,664 3, ,660 Construction cost 199, ,306 Third-party costs and services 46,208 51,059 52, ,961 Depreciation and amortization 93,403 23, ,962 Provisions, net ,701 60,401 74,102 ANEEL inspection fees ,389 7,389 Other costs and expenses 7,167 12,174 87,811 11, ,477 2,836, , ,713 91,279 3,340,004 Total Description Costs of assets and/or services General and administrative expenses Selling expenses Other expenses/ income, net September 30, 2012 Electric energy purchased for resale 1,730, ,730,235 Personnel 335, ,763 28,377 41, ,474 Management 215, ,498 Actuarial expenses - 41, ,054 Private pension entity 12,116 3,820 1,523-17,459 Material 11,930 4, ,609 Construction cost 215, ,071 Third-party costs and services 40,164 44,648 41, ,639 Depreciation and amortization 85,115 29, ,288 Provisions, net ,003 (54,641) (22,638) ANEEL inspection fees 77, ,083 85,561 Other costs and expenses 7,912 7,379 15, ,834 2,731, , ,564 (4,728) 3,295,084 Total Page 84 of 97

96 Quarterly information (ITR) - 9/30/ Version: Supplementary information on Celesc G Balance sheet Assets September 30, 2013 December 31, 2012 Current assets 53,107 14,522 Cash and cash equivalents 35,306 7,514 Trade receivables 14,253 6,500 Inventories Taxes recoverable 3, Other receivables Non-current assets 286, ,299 Taxes recoverable Judicial deposits Investments 33,139 20,203 Property, plant and equipment 249, ,231 Intangible assets 4,395 2,720 Total assets 339, ,821 September 30, December 31, Liabilities and equity Current liabilities 14,044 15,808 Trade payables 2,888 4,196 Taxes and contributions 8,856 10,097 Regulatory charges Related parties 1,774 1,304 Other liabilities 27 5 Non-current liabilities 25,070 29,047 Deferred taxes 23,248 28,404 Provision for contingencies 1, Equity 300, ,966 Paid-up share capital 126, ,000 Revenue reserves - (906) Carrying value adjustments 113, ,872 Retained earnings (accumulated deficit) 61,537 - Total liabilities and equity 339, ,821 Page 85 of 97

97 Quarterly information (ITR) - 9/30/ Version: Statement of operations for the quarter September 30, 2013 September 30, 2012 Net Operating Revenue (NOR) 73,310 49,808 Revenue 73,310 49,808 Operating costs (24,287) (15,450) Cost of electric energy services (24,287) (15,450) Gross operating profit 49,023 34,358 Operating expenses (9,875) (20,778) Selling expenses (283) (1,757) General and administrative expenses (6,866) (10,581) Other operating expenses (2,755) (7,134) Equity in the Results of Investees 29 (1,306) Service result 39,148 13,580 Finance result 1, Finance income 1,035 1,242 Finance costs (23) (268) Profit before taxation 40,160 14,554 IRPJ and CSLL (1,668) (5,870) Current (6,823) (7,279) Deferred 5,155 1,409 Profit (loss) for the period 38,492 8,684 Page 86 of 97

98 Quarterly information (ITR) - 9/30/ Version: Operating revenue September 30, 2013 September 30, 2012 Gross operating revenue Electric energy supply (a) - Industrial 27,931 29,729 Electric energy supply (a) - Commercial 8,183 1,439 Provision of electric energy (a) 29,808 25,489 Short-term electric energy (a) 21,549 3,540 87,471 60,197 Deductions from operating revenue ICMS (6,518) (4,912) PIS (1,228) (868) COFINS (5,657) (4,379) Global Reversion Reserve (RGR) (758) (230) (14,161) (10,389) Net Operating Revenue (NOR) 73,310 49,808 a) Electric energy supply Number of consumers (i) MWh (i) Gross revenue Description 9/30/2013 9/30/2012 9/30/2013 9/30/2012 9/30/2013 9/30/2012 Electric energy supply Industrial , ,358 27,931 29,729 Commercial, services and other ,245 8,767 8,183 1,439 Provision of electric energy , ,195 29,808 25,489 Short-term electric energy 3, ,568 90,057 21,549 (CCEE) Total , ,377 87,471 60,197 (i) Information not reviewed Operating costs and expenses Description Costs of assets and/or services General and administrative expenses Selling expenses Other expenses September 30, 2013 Electric energy purchased for resale 2, ,973 Personnel 3,946 4, ,833 Management Material Third-party costs and services 1,299 1, ,310 Depreciation and amortization 37, ,684 Financial compensation for use of water resources Provisions, net (21,126) - - 1,179 (19,947) ANEEL inspection fees Other costs and expenses ,295 24,287 6, ,755 34,191 Total Page 87 of 97

99 Quarterly information (ITR) - 9/30/ Version: 1 Description Costs of assets and/or services General and administrative expenses Selling expenses Other expenses September 30, 2012 Electric energy purchased for resale 6, ,730 Personnel 1,641 7, ,232 Management Material Third-party costs and services 1,752 1, ,284 Depreciation and amortization 5, ,063 Financial compensation for use of water resources Provisions, net ,757-2,544 ANEEL inspection fees Other costs and expenses ,120 6,460 15,450 10,581 1,757 7,134 34,922 Total Page 88 of 97

100 Quarterly information (ITR) - 9/30/ Version: 1 Other information considered relevant by the Company 1. Regulatory assets and liabilities These accounts comprise non-manageable costs, defined as such by ANEEL, included in the account Compensation of the Variation of Costs in "Portion A" (CVA), and not yet transferred to the electric energy supply tariffs. The aforementioned costs integrate the basis for the adjustment of tariffs and are allocated to the statement of operations as the corresponding revenue is billed to the consumers, according to Ordinances 25 and 116, of January 24, 2002 and April 4, 2003, respectively, and supplementary provisions of ANEEL. The accounts are restated based on the interest rate used by the Special System for Settlement and Custody (SELIC). a) Compensation of the variation of costs in "Portion A" (CVA) Consolidated Description December September 31, , 2013 CVA period from 8/8/2011 to 8/7/ ,906 - CVA period from 8/8/2011 to 8/7/ ,877 7,537 CVA period from 8/8/2013 to 8/7/ ,605 Total CVA 164, ,142 ASSETS Description December 31, 2012 Additions Write-offs Restatements Amortization Consolidated September 30, 2013 Fuel Consumption Account (CCC) 9,051 3,254 (738) 580 (1,997) 10,150 Energy Development Account (CDE) 12,645 - (4,268) 231 (8,608) - Electric energy purchased for resale 132, ,381 (583,864) 21,926 (16,246) 174,425 Electric energy purchased for resale - LP - 64,972 (64,972) - System Service Charges (ESS) 4,766 61,988 (68,000) 1, Use of the basic network 8,023 2,601 (9,420) 18-1,222 Transmission of electric energy from Itaipu 501 1, (435) 1,297 Alternative Energy Sources Incentive Program (Proinfa) 10,237 11, (10,577) 11,855 Total assets 765,973 (731,262) 24,651 (37,863) 198, ,451 Amounts classified in current assets 177, ,561 (731,262) 24,651 (37,863) 198,950 Amounts classified in non-current assets - 64,972 (64,972) LIABILITIES Fuel Consumption Account (CCC) (1,507) - - (37) 1,544 - Energy Development Account (CDE) - (32,411) 28,960 (370) 628 (3,193) Electric energy purchased for resale - (19,448) (19,448) System Service Charges (ESS) (9,919) (28,269) 4,835 (411) 10,419 (23,345) Use of the basic network (165) (12,776) - (179) 2,298 (10,822) Transmission of electric energy from Itaipu (1,077) - - (26) 1,103 - Total liabilities (12,668) (92,904) 33,795 (1,023) 15,992 (56,808) Amounts classified in current liabilities (12,668) (73,456) 33,795 (1,023) 15,992 (37,360) Amounts classified in long-term liabilities - (19,448) (19,448) Balance of CVA 164, ,069 (697,467) 23,628 (21,871) 142,142 Page 89 of 97

101 Quarterly information (ITR) - 9/30/ Version: 1 Other information considered relevant by the Company b) Other regulatory assets Description December 31, 2012 Additions Amortization Consolidated September 30, 2013 Regulatory assets - Other financial items - Tariff Adjustment Index (IRT) 57,152 80,103 (60,323) 76,933 Total 57,152 80,103 (60,323) 76,933 Current assets 57,152 80,103 (60,323) 76,933 c) Other regulatory liabilities Consolidated Description December 31, 2012 Additions Amortization September 30, 2013 Regulatory liabilities - Neutrality - industry charges (28,911) (30,173) 33,940 (25,144) Total (28,911) (30,173) 33,940 (25,144) Current liabilities (28,911) (30,173) 33,940 (25,144) 2. Financial indicators 2.1. Equity Equity value of shares (R$ per share) Market value per share (R$ per share) Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Series1 Series2 Page 90 of 97

102 Quarterly information (ITR) - 9/30/ Version: 1 Other information considered relevant by the Company 2.2. Liquidity Current liquidity General liquidity Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q Indebtedness Asset Indebtedness (%) Equity Indebtedness (%) , Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q Profitability Equity profitability (%) Property, plant and equipment profitability (%) ,33-10, ,09 3Q12 4Q12 1Q13 2Q13 3Q Q12 4Q12 1Q13 2Q13 3Q13 Page 91 of 97

103 Quarterly information (ITR) - 9/30/ Version: 1 Other information considered relevant by the Company Net operating margin Asset profitability 10.83% 17.86% 2.08% 3.75% % % % 3Q12 4Q12 1Q13 2Q13 3Q % -2.63% -3.47% 3Q12 4Q12 1Q13 2Q13 3Q EBITDA (earnings before interest, taxes, depreciation and amortization) EBITDA (R$ million) EBITDA (% on ROL) % 25.97% Q12 4Q12 1Q13 2Q13 3Q % % % 3Q12 4Q12 1Q13 2Q13 3Q Efficiency Equivalent Duration of Interruptions per Consumer (DEC) (weighted hours) Equivalent Frequency of Interruptions per Consumer - FEC (no.) Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Page 92 of 97