Rio de Janeiro, August 09, 2017

Transcription

1 RESULTS

2 Rio de Janeiro, August 09, 2017 Transmissora Aliança de Energia Elétrica S.A. ( Taesa or Company ; BM&FBovespa: TAEE11), one of the largest Brazilian electric power transmission concessionaires, announces today its results for the second quarter of The consolidated interim financial information was prepared according to the accounting practices adopted in Brazil ( BRGAAP ) and the International Financial Reporting Standards ( IFRS ) issued by the International Accounting Standards Board - IASB, defined herein as Regulatory Result and IFRS Result, respectively. The presentation of those pieces of information complies with the Brazilian Securities Commission standards applicable to the preparation of Quarterly Information - ITR. The Regulatory Result presented below was also prepared based on the current framework of the Electricity Sector Accounting Manual, issued by the Brazilian Electricity Regulatory Agency (ANEEL), where all investments made in the construction of transmission lines are recorded as property, plant and equipment and the effects resulting from the application of ICPC 01 (R1) (IFRIC 12) are eliminated, including the tax impacts (deferred corporate income social contribution taxes and deferred PIS and COFINS) recognized on temporary differences arising from the application of this interpretation. It is important to mention that the Regulatory Result is not audited. To facilitate the understanding of the information presented in this document, the terms associated with the words Regulatory and IFRS follow the same principles and framework defined above for the Regulatory Result and IFRS Result, respectively. In line with accounting standards, Taesa does not proportionally consolidate the jointly-controlled and associated companies. Accordingly, income (loss) of ETAU, Brasnorte, Aimorés, Paraguaçu and of the TBE group are accounted under the equity method in both the IFRS and the Regulatory Result. Taesa's dividend declaration is performed based on the IFRS Result reviewed by the auditor. Conference Call in English August 10, 2017 Thursday Brazil time 2 pm New York time 1 pm Dial in: Password: Taesa Marco Antônio Resende Faria Marcus Pereira Aucélio Cristiano Prado Grangeiro IR Contact CEO CFO and IRO IR Manager investor.relations@taesa.com.br Telephone

3 Efficiency and Cash Flow Generation The result for the second quarter of 2017 confirmed Taesa's financial discipline and capacity to generate operating cash. The Company's Regulatory EBITDA totaled R$ million for the quarter, 12.9% higher y.o.y. Regulatory EBITDA margin stood at 88.8% in and at 89.4% for the year, against 87.0% and 88.7% in the respective periods of 2016, as a result of the 5.2% annual decrease in costs and expenses. The IFRS net income for totaled R$ 72.0 million, a reduction of 65.2% y.o.y, basically explained by the significant difference in the macroeconomic indexes, the General Market Price Index (IGP-M) and the National Amplified Consumer Price Index (IPCA), recorded between the periods. In, IGP-M recorded accumulated deflation of 2.00% and the IPCA accumulated 0.70% of inflation. In the same period of 2016, the accumulated IGP-M was 1.66% and the IPCA was 1.83%. In the first six months of 2017, Taesa's transmission line availability rate was 99.98%, and the Variable Portion (PV) totaled R$ 7.6 million (a discount equivalent to 0.8% of the Company s Annual Permitted Revenues - RAP), presenting a reduction of 63.3% when compared to the PV in 1H16. Taesa, in partnership with CTEEP, acquired Lot 1 in the transmission auction 005/2016 on April 24, with a RAP of R$ million, considering the Company's stake. The focus on return for shareholders and the low level of leverage (R$ 2,721 million of net consolidated debt and net debt/ebitda ratio of 1.7x) shows that Taesa is prepared for growth opportunities in transmission, via M&A or Greenfield projects. On May 31, the Company paid R$ million in dividends and interest on equity (JCP) based on the 1Q17 results, in addition to the R$ million paid on May 12, referring to the 2016 results. It is worth highlighting the conclusion, on June 13, of the sale of the common shares of the control block held by FIP Coliseu and FIA Taurus to Interconexión Eléctrica S.A. E.S.P. and consequent transfer to ISA Investimentos e Participações do Brasil S.A. The Company believes that, with the entry of this investor with long experience in transmission in the control block, it will consolidate its position in the sector, creating greater growth opportunities with value generation. On June 27, ANEEL published the Ratifying Resolution 2258/17, establishing the RAP of the transmission concessions for the cycle. The RAP for the 34 concessionaires of the Taesa group totaled R$ 2,846 million, 1.0% higher than the previous cycle, contemplating yet the RAP reduction in 6 concessions. Moreover, on August 2, the Extraordinary Shareholders' Meeting ratified the transfer of the interest held by CEMIG in Transmineiras (3 public utility transmission concessionaires: Transleste, Transirape, Transudeste) to Taesa. The conclusion of this transaction is also subject to the prior approvals of the antitrust authorities - CADE, ANEEL, creditors and financing banks. Keys Figures Consolidated R$ MM 2Q16 Chg. % 1H17 1H16 Chg. % Net Revenues Reg % % EBITDA Reg % % EBITDA Margin Reg. 88.8% 87.0% 1.8 pp 89.4% 88.7% 0.7 pp Net Revenues IFRS % % Net Income IFRS % % Net Debt 2, , % 2, , % TAEE11 (09 Aug) % % Market Cap (09 Aug) 8, , % 8, , % 3 Consolidated and Associated Concessions R$ MM 2Q16 Chg. % 1H17 1H16 Chg. % Net Revenues Reg % 1, , % EBITDA Reg % % EBITDA Margin Reg. 89.5% 87.8% 1.6 pp 89.9% 89.2% 0.7 pp

4 4 1. Overview 1.1 Corporate Structure 2. Financial 2.1 Operational Performance RAP Cycle Net Revenues IFRS Costs, Expenses, Depreciation and Amortization IFRS EBITDA / EBITDA Margin IFRS Regulatory Net Revenues Regulatory Costs, Expenses, Depreciation and Amortization Regulatory EBITDA / EBITDA Margin Equity Method Net Financial Taxes Net Income Dividends and Interest on Equity Indebtedness Financial Statements Breakdown of the IFRS Revenues Financial Asset Income Statement (IFRS and Regulatory) EBITDA Reconciliation Taesa Balance Sheet TBE Balance Sheet Cash Flow 29

5 5 Corporate Structure The 34 transmission concessions/stakes owned by Taesa are: (i) 10 concessions held within the holding company (TSN, NVT, ETEO, GTESA, PATESA, Munirah, NTE, STE, ATE and ATE II), (ii) 5 integral subsidiaries (ATE III, São Gotardo, Mariana, Miracema and Janaúba), and (iii) 19 stakes (ETAU, Brasnorte, Aimorés, Paraguaçu, ERB1 and TBE). TBE is a group of 14 stakes. CEMIG ISA Brasil* Free Float 31.5% 14.9% 53.6% * ISA Investimentos e Participações do Brasil S.A. TBE 100% 100% 100% 100% 100% 52.6% 38.7% 50% 50% 50% 49.9% ATE III São Gotardo Mariana Miracema Janaúba ETAU Brasnorte Paraguaçu Aimorés ERB1 TBE Fully Consolidated Consolidated with Equity Method TBE* Corporate Structure * TBE é a fantasy name to represent a group of 14 concessions. TBE 50% 50% 50% 19% 22% 49% EATE ETEP ENTE ECTE ERTE (10) EBTE 100% 19% 100% 62% STC (1) ESDE (8) STC (1) ETSE (9) 80% Lumitrans (2) 38% ERTE (10) 10% Transleste (3) 10% 10% 18% 51% Transudeste (4) Transirapé (5) ERTE (10) EBTE (7) (1) EATE: 62%, ENTE 19%; Total Taesa: 40% (2) EATE (80%); Total Taesa: 40%. (3) EATE (10%); Total Taesa: 5% (4) EATE (10%); Total Taesa: 5% (5) EATE (10%); Total Taesa: 5% (6) Total Taesa: 50% (7) Total Taesa: 74% (8) Total Taesa: 50% (9) Total Taesa: 19% (10) Total Taesa: 50% 100% ESTE (6) Under construction

6 6 Operational Performance With a consistent operating performance over the years, Taesa presented a consolidated average availability rate of 99.98% in 2017 year-to-date, as shown in the chart below, which presents Taesa's consolidated figures, not considering ETAU, Brasnorte and TBE. Ø 99.97% 99.97% 99.98% 99.97% 99.98% 99.96% 99.98% H17 Line Availability is a measure of time and is strictly an operating indicator. It is calculated by dividing the number of hours during which the line is available by the number of hours in a year (8,760 hours) per 100 km stretch. (Line Extension x hours available)/100 (Line Extension x 8,670hours)/100 x 100 The indicator that shows the impact of line unavailability on the company's income statement is the variable portion (PV). Due to the variable behavior of PV in the short term, the best way to understand the Company's performance is to analyze the PV value divided by RAP, as shown in the chart below. Ø 1.1% 1.2% 1.0% 1.4% 1.3% 0.8% 0.5% H17 The PV of R$ 6.4 million in was mainly due to: (i) automatic shutdown of LT 500 kv Xingó/Angelim II due to the high level of pollution in the region (NTE); (ii) automatic shutdown of the IZCL7-05 variable-capacitor bank of SE Imperatriz due to the failure in the cooling system and programmed shutdown of the LT 500 kv Gurupi/Miracema C-2 followed by the forced shutdown of the circuit breaker connected to the MCBR7-02 (NVT) bus; and (iii) failure in phase B of the circuit breaker of LT Serra da Mesa/Serra da Mesa II (TSN) Reactor Bank.

7 RAP Cycle On June 27, 2017, ANEEL published Ratifying Resolution REH 2258/17 that established the Annual Permitted Revenues (RAP) of the transmission concessions for the cycle. The Category II concessions adjusted by the IGP-M index have been monetarily restated by approximately 1.6%, and Category III concessions adjusted by the IPCA index have been monetarily restated by approximately 3.6%. RAP (R$ MM) 2016/ /2018 Cycle Cycle IGP-M Adjustment 11.1% 1.6% Novatrans TSN² Munirah GTESA PATESA ETAU ¹ ETEO NTE STE² ATE I ATE II² EATE¹ ETEP¹ ENTE¹ ECTE¹ ERTE¹ Lumitrans¹ Transleste¹ Transirapé¹² Transudeste¹ Subtotal 2, ,110.3 IPCA Adjustment 9.3% 3.6% ATE III³ São Gotardo³ Mariana Miracema Janaúba Aimorés Paraguaçu Brasnorte¹²³ STC¹³ EBTE¹²³ ESDE¹³ ETSE¹³ ESTE ERB Subtotal Total 2,818 2,846 ¹ RAP figures proportional to Taesa s stake in July, 2017 ² Including reinforcement projects ³ RAP must be grossed up of PIS/COFINS 4 Under construction Considering the controlled concessions, jointly-controlled and associated companies 1, the total RAP (operational and under construction) of Taesa for the cycle is R$ 2,846 million, of which 60% at the holding company level. Since 7 concessions are still under construction (Mariana, Miracema, Janaúba, Paraguaçu, Aimorés, ESTE and ERB1), Taesa's operating RAP for the cycle was R$ 2,304 million. The RAP adjustment to the cycle was different from the inflation rate in the following concessions: (i) Novatrans considers 50%-RAP reduction for a part of its functions and a reinforcement start-up; (ii) TSN, EATE and ETEP consider 50%-RAP reduction for all its functions; (iii) EATE also considered a tariff review in a reinforcement; (iv) ETEO and ECTE presented a full 50%-RAP reduction after the partial reduction presented in the previous cycle ( ); (v) PATESA, ETAU and Transirapé started reinforcement operations; (vi) ETSE considered a tariff review in May/18; (vii) STC had an early start-up of reinforcements in Jul/16 (scheduled for Nov/16) and the tariff review effect. The ERB1 concession was acquired (50% stake) in the transmission auction nº 005/2016, dated April 24, The published RAP amounts for ATE III, São Gotardo, Mariana, Miracema, Janaúba, Aimorés, Paraguaçu, Brasnorte, EBTE, STC, ESDE, ETSE, ESTE and ERB1 must be grossed up of PIS/COFINS taxes. Cat 3 RAP by Category 22% 7 79% Cat 2

8 8 50% RAP Reduction The Technical Note nº 183/2017-SGT/ANEEL, dated 06/22/2017, approved by the REH nº 2258 from 06/27/2017, establishes the annual permitted revenues ( RAP ) related to transmission facilities under the responsibility of concessionaires for the cycle. The transmission concession contracts auctioned between 1999 and 2006 (Category II) provide for a 50% reduction in RAP (Basic Network) as of the 16th year of commercial operation of the facilities. Considering that the concession contracts include facilities whose associated RAP portion will be reduced by 50% on different dates throughout the cycle, an equivalent RAP was calculated to be received by the concessionaires over this cycle, which considers the pro-rata of the full RAP amount from 7/1/2017 until the end of the 15th year of the facilities commercial operation, and the pro-rata of the reduced RAP amount (50% of full RAP) from the starting date of the 16th year of the facilities commercial operation until 6/30/2018. For the and cycles, six concessions reached or will reach the 16th year of operation: Novatrans: 6 transmission functions (representing 16.3% of Novatrans RAP) will enter the 16th year of operation on 6/3/2018. In the cycle, the other transmission functions of Novatrans will enter the 16th year of operation: 7 functions (19.4% of RAP) on 12/8/2018; 8 functions (19.1% of RAP) on 12/23/2018; and 18 functions (45.2% of RAP) on 4/8/2019. TSN: 47 transmission functions (representing 93.7% of TSN's RAP) will enter the 16th year of operation on 3/4/2018; 2 functions (4.2% of RAP) on 4/5/2018; 4 functions (0.7% of RAP) on 5/22/2018; and 8 functions (1.4% of RAP) on 6/3/2018. EATE: 5 transmission functions (representing 19.4% of EATE s RAP) will enter the 16th year of operation on 2/1/2018; 10 functions (46.5% of the RAP) on 2/20/2018; and 7 functions (34.1% of RAP) on 3/10/2018. ETEO: 13 transmission functions (representing 100% of ETEO s RAP) entered the 16th year of operation on 10/19/2016. ETEP: 4 transmission functions (representing 100% of ETEP s RAP) will enter the 16th year of operation on 8/25/2017. ECTE: 3 transmission functions (representing 70.4% of the ECTE s RAP) entered the 16th year of operation on 3/9/2017; and 4 functions (29.6% of RAP) on 3/26/2017.

9 Net Revenues IFRS IFRS Net Revenues totaled R$ million in, down 47.7% y.o.y. The lower inflation rates recorded in compared to 2Q16 were the major reason for this decline. Given the predictability of the inflation adjustment on the Company's revenues, stated by the concession agreement, Taesa recognizes these effects monthly. Thus, the effect of inflation is diluted monthly, based on the IGP-M or IPCA inflation indexes published in the previous month. The indexes used for the monetary adjustment in were as follows: IGP-M of 0.01%, -1.10% and -0.93%, and IPCA of 0.25%, 0.14% and 0.31% for the months of March, April and May In 2Q16, the IGP-M was 0.51%, 0.33% and 0.82%, and the IPCA was 0.43%, 0.61% and 0.78% in the respective months. Consolidated Consolidated and Associated Concessions Net Revenues IFRS 2Q16 Chg. % 2Q16 Chg. % Operation and Maintenance % % Financial Asset Income % % Financial Asset - Monetary adjustment (87.5) (130.4) Construction % % Total IFRS Revenues % % PV (6.4) (17.4) -63.3% (6.4) (18.5) -65.5% Other % % Total Gross Revenues % % PIS/COFINS (9.9) (18.2) -45.5% (11.2) (22.9) -51.2% Service Tax (ISS) (0.05) (0.04) 25.0% (0.05) (0.04) 25.0% Industry Charges (20.5) (18.9) 8.5% (25.5) (23.4) 9.1% Deductions (30.4) (37.1) -18.0% (36.8) (46.4) -20.7% Total Net Revenues % % 9 The quarterly variation and the breakdown of Taesa's net revenues mainly reflect the following aspects: O&M income: 10.7% y.o.y increase due to the inflation adjustment in the cycle (IGP-M of 11.1% and IPCA of 9.3%) Financial Assets income: Calculated by multiplying the internal rate of return (IRR) by the financial asset. Annual 8.2% decrease due to the amortization of the financial asset in the last 12 months by the receipts referring to the cycle. Financial Asset monetary adjustment: Based on the monthly inflation adjustment. The large negative variation between and 2Q16 is explained by the significant difference of the macroeconomic indexes, IGP-M and IPCA, between these two periods. In, the IGP-M recorded accumulated deflation of 2.00% and the IPCA accumulated 0.70% of inflation. In the same period of 2016, accumulated IGP-M was 1.66% and IPCA 1.83%. Thus, the annual impact of inflation on revenues was R$ 172 million, being the main factor for the decline in net revenues. Construction revenues totaled R$ 3.6 million in, mainly related to: (i) R$ 1.4 million in Mariana, (ii) R$ 0.7 million in Miracema, (iii) reinforcements in Patesa in the amount of R$ 0.4 million, (iv) R$ 0.4 million referring to the Janaúba concession, and (v) Novatrans reinforcements totaling R$ 0.4 million. Variable Portion (PV): Annual decrease of 63.3%. The main occurrence was the shutdown of the transmission functions connected to SE Itacaiúnas due to the accidental operation of the 500 kv bus bar 1 protection in May Other Revenues: The main impact was the receipt of quotas that are transferred to PROINFA and CDE. Deductions: 18.0% y.o.y decrease mainly due to the PIS/COFINS tax reduction following the IFRS gross revenues reduction (taxes vary according to each concession see page 16). This effect was partially offset by the increase in the RGR and R&D fees, equivalent to 2.5% and 1%, respectively, of the RAP (Regulatory Rev.) in the period.

10 10 Costs, Expenses, Depreciation and Amortization IFRS Costs, Expenses and D&A totaled R$ 55.4 million in, down 0.8% y.o.y. The main annual variations in costs and expenses under IFRS were mainly explained by the following events: (i) 9.6% decrease chiefly due to the capitalization of personnel costs in the projects of maintenance, reinforcements and improvements, which more than offset the payroll adjustment pursuant to the collective bargaining agreement; (ii) execution of the projects in construction and O&M, mainly in Miracema, Janaúba, Novatrans, STE and ETEO, accounted in material expenses; (iii) increase in the maintenance of easement transmission lines strips and consulting expenses, accounted in third party services; and (iv) drop in Other expenses as a result of provisions for civil contingencies in Costs and expenses of TBE, ETAU and Brasnorte under IFRS represented R$ 9.9 million, R$ 0.9 million, and R$ 0.9 million, respectively. Consolidated Consolidated and Associated Concessions IFRS 2Q16 Chg. % 2Q16 Chg. % Personnel (27.7) (30.6) -9.6% (32.2) (35.5) -9.3% Material (6.7) (4.7) 43.4% (8.8) (11.7) -24.9% Third Party Services (12.9) (10.4) 23.6% (16.9) (14.3) 18.5% Other (7.3) (9.5) -22.8% (8.4) (10.6) -20.6% Total (54.6) (55.2) -1.1% (66.3) (72.1) -8.0% Depreciation & Amortization (0.8) (0.6) 26.4% (1.0) (0.8) 23.1% Total (55.4) (55.9) -0.8% (67.4) (72.9) -7.6% EBITDA / EBITDA Margin IFRS EBITDA under IFRS totaled R$ MM with a EBITDA Margin of 67.7%. The decrease in the EBITDA under IFRS, in the comparison between 2Q16 and, is a direct result of the significant difference in the macroeconomic indexes, IGP-M and IPCA, recorded between these periods, which affected the monetary adjustment of financial asset, as described in the section Net Revenues IFRS (page 9). TBE's EBITDA under IFRS was negative by R$ 2.6 million, and ETAU and Brasnorte recorded positive EBITDA under IFRS of R$ 0.2 million and R$ 1.6 million, respectively. EBITDA under IFRS is not a metric to reflect the Company s operational cash flow, since IFRS adoption creates a deviation between P&L and Cash Flow. Consolidated Consolidated and Associated Concessions EBITDA IFRS 2Q16 Chg. % 2Q16 Chg. % Net Revenues % % Costs and Expenses (54.6) (55.2) -1.1% (66.3) (72.1) -8.0% EBITDA % % EBITDA margin 67.7% 82.9% pp 63.2% 82.9% pp

11 11 Regulatory Net Revenues Regulatory Net Revenues totaled R$ mn, 10.5% higher than 2Q16. The Regulatory Net Revenues is not affected by the recognition of the inflationary effects described in the section Net Revenues IFRS (page 9), since this recognition is an accounting definition under IFRS on the monetary restatement of the financial asset that, thus, influences only the Net Revenues under IFRS. ETEO and ECTE concessions recorded a reduction of 50% in the RAP for the cycle and some reinforcements underwent tariff review, causing an annual variation of 7.4% in the RAP, a percentage lower than the inflation indices recorded in this cycle (IGP-M of 11.1% and IPCA of 9.3%). These effects were offset by the 63.3% y.o.y decrease in the Variable Portion (PV), resulting in an annual increase of 10.5% in Regulatory Net Revenues. Consolidated Consolidated and Associated Concessions Regulatory Net Revenues 2Q16 Chg. % 2Q16 Chg. % RAP Concessions % % PV (6.4) (17.4) -63.3% (6.4) (18.5) -65.5% Service Revenues % % Other Revenues % % Total Gross Revenues % % PIS/COFINS (23.1) (21.4) 8.0% (28.6) (26.3) 9.0% Service Tax (ISS) (0.05) (0.04) 25.0% (0.05) (0.04) 25.0% Consumer's Fee (20.5) (18.9) 8.5% (25.5) (23.4) 9.1% Deductions (43.6) (40.3) 8.3% (54.2) (49.7) 9.1% Total Net Revenues % % The net revenues of TBE, ETAU and Brasnorte represented R$ million, R$ 5.4 million and R$ 2.3 million, respectively. Regulatory Costs, Expenses, Depreciation and Amortization Costs, Expenses and D&A totaled R$ 95.2 million in, 5.6% higher than 2Q16. The differences between the Regulatory and IFRS, in the caption Costs, Expenses and D&A, are observed in material expenses and in depreciation and amortization. The IFRS Result accounts the investment in the construction of new assets, reinforcements and improvements as material expenses, at the same time as it capitalizes construction revenues in the financial asset. The Regulatory Result depreciates property, plant and equipment investments. As explained earlier, the main variations in costs and expenses between and 2Q16 are explained by the following events: (i) 9.6% decrease chiefly due to the capitalization of personnel costs in the projects of maintenance, reinforcements and improvements, which more than offset the payroll adjustment pursuant to the collective bargaining agreement; (ii) increase in the maintenance of easement transmission lines strips and consulting expenses, accounted in third party services; (iii) drop in Other expenses as a result of provisions for civil contingencies in 2016; and (iv) decrease in depreciation and amortization due to the reduction of D&A rates disclosed by ANEEL. The costs and expenses of TBE, ETAU and Brasnorte represented R$ 8.4 million, R$ 0.8 million and R$ 0.6 million, respectively. Consolidated and Associated Consolidated Concessions Regulatory 2Q16 Chg. % 2Q16 Chg. % Personnel (27.7) (30.6) -9.6% (32.2) (35.5) -9.3% Material (0.5) (0.4) 8.0% (0.6) (0.3) 84.7% Third Party Services (12.9) (10.4) 23.6% (16.9) (14.3) 18.5% Other (7.3) (9.5) -22.8% (8.4) (10.6) -20.6% Total (48.3) (51.0) -5.2% (58.2) (60.8) -4.2% Depreciation & Amortization (46.9) (49.9) -6.1% (58.2) (61.1) -4.8% Total (95.2) (100.9) -5.6% (116.4) (121.9) -4.5%

12 Regulatory EBITDA / EBITDA Margin Regulatory EBITDA reached R$ million, up 12.9% y.o.y, with an EBITDA margin of 88.8%. In the second quarter of 2017, Regulatory EBITDA was 12.9% higher when compared to the same period of 2016, due to the annual inflation adjustment in the RAP of the concessions and also to the y.o.y costs and expenses reduction, as explained on the previous page. As a result, EBITDA margin reached 88.8% in, an increase of 1.8 pp over 2Q16. In the energy transmission sector, the Regulatory EBITDA is a key operational and financial indicator, due to its adherence to the Company s operating cash flow. Consolidated and Associated Consolidated Concessions Regulatory EBITDA 2Q16 Chg. % 2Q16 Chg. % Net Revenues % % Costs and Expenses (48.3) (51.0) -5.2% (58.2) (60.8) -4.2% EBITDA % % EBITDA margin 88.8% 87.0% 1.8 pp 89.5% 87.8% 1.6 pp Regulatory EBITDA Composition The table below shows how the Regulatory EBITDA would be, considering proportionally all the concessions of the Company s group. It is important to highlight that the consolidated result under Brazilian Accounting Principles does not consolidate jointly controlled and associated companies (ETAU, BRASNORTE and TBE). 12 Figures EBITDA R$ mn Margin: 89.5% Taesa EBITDA: R$ mn Margin: 88.8% ETAU (52.56%) EBITDA: R$ 4.7 mn Margin: 86.2% Brasnorte (38.66%) EBITDA: R$ 1.6 mn Margin: 71.8% TBE (49.99%) EBITDA: R$ mn Margem: 92.5% Net Revenue R$ mn Opex R$ 48.3 mn Net Revenue R$ 5.4 mn Opex R$ 0.8 mn Net Revenue R$ 2.3 mn Opex R$ 0.6 mn Net Revenue R$ mn Opex R$ 8.4 mn

13 13 Equity Method IFRS The IFRS Equity Method in totaled R$ 3.7 million, down 93% y.o.y, reflecting lower inflation rates. The 92.9% variation in the IFRS results of the jointly-controlled and associated companies in the comparison between the second quarter of 2017 and the same period of 2016 was mainly due to the lower macroeconomic indexes that monetarily restate the financial asset (IGP- M and IPCA recorded -2.00% and 0.70% in, respectively; and 1.66% and 1.83% in 2Q16, respectively). The accumulated indexes for the second quarter refer to the months of March, April and May of the year. R$ mn IFRS Equity method 2Q16 Chg. % ETAU (0.07) % Brasnorte % TBE % Aimorés (0.07) - Paraguaçu (0.15) - Total Equity Method % Regulatory Equity Method The Regulatory Equity Method in was R$ 59.9 MM, +40.4% y.o.y. The Regulatory Equity Method in was 40.4% higher compared to the same period in 2016, as a result of the annual inflation adjustment in the RAP (cycle ) and the annual reduction of financial expenses, mainly in TBE. The difference between the equity method registered in Taesa s result and the sum of the results of ETAU, Brasnorte, Aimorés, Paraguaçu and TBE is explained by the amortization of the goodwill arising from the allocation of the price paid for the TBE acquisition. R$ mn Regulatory Equity method 2Q16 Chg. % ETAU % Brasnorte % TBE % Aimorés (0.08) - Paraguaçu (0.15) - Result of Associated Companies % Amortization of goodwill - TBE % Total Equity Method %

14 14 Net Financial Net Financial Expenses totaled R$ 53.1 MM in, down 46.9% QoQ. R$ mn Consolidated Consolidated and Associated Concessions Net Financial 2Q16 Chg. % 2Q16 Chg. % Financial Revenues % % Revenues from financial investments % % Financial Expenses (71.7) (113.5) -36.9% (85.8) (133.6) -35.8% Interest (60.8) (79.9) -23.8% (74.8) (98.5) -24.0% Monetary and Exchange Rate Variation (10.0) (34.6) -71.2% (9.4) (34.7) -72.8% Adjustment to Fair Value % % Other Financial Expenses/Revenues (1.9) (1.7) 12.0% (2.6) (3.0) -12.7% Total (53.1) (99.9) -46.9% (65.0) (117.9) -44.8% The positive y.o.y variation in financial revenues is due to the greater average cash volume in the second quarter of The 23.8% annual decrease in the interest line was mainly explained by the reduction in gross debt and by the fall in IPCA and CDI indexes. In December 2016, there was an amortization of R$ 195 million related to the 2nd issuance of debentures. In addition, in the second quarter of 2017, the accumulated IPCA and CDI rates were 0.22% and 2.54%, respectively, while in the second quarter of 2016 these indexes were 1.75% and 3.41%, respectively. The 71.0% y.o.y decrease in monetary and exchange rate variation was due to the fall in the IPCA index between the periods. And the adjustment to fair value reduced in R$ 1.6 million due to the mark-to-market variation of the 4131 debt.

15 15 Taxes In, IFRS income and social contribution taxes recorded a credit in the amount of R$ 7.5 million, mainly explained by: (i) payment of interest on equity (JCP) in May 2017 in the amount of R$ 78.1 million, which generated a tax benefit of R$ 26.6 million; and (ii) consolidated SUDAM/SUDENE tax benefit of R$ 2.2 million. The SUDAM/SUDENE tax benefit is calculated based on the IFRS result of each concession. These benefits are tax incentives granted by the Superintendency of Development for the Amazon (SUDAM) and the Superintendency of Development of the Northeast Region (SUDENE) in activities directly related to production in the region, and they reduce 75% of the income tax due on the exploration of transmission concessions. R$ mn IFRS Regulatory Reconciliation of income tax 2Q16 Chg. % 2Q16 Chg. % Pretax Profit % % IRPJ and CSLL rate of 34% (21.9) (74.8) -70.7% (117.2) (79.5) 47.4% Equity method % % SUDAM/SUDENE % % JCP paid % % Other (0.6) (0.6) Recognized IRPJ and CSLL 7.5 (12.8) - (68.7) (20.8) 231% Effective Rate - IFRS Effective Rate - Regulatory 34% 34% 34% 34% Equity Method Fiscal Benefit IOE Paid Other Effective Rate 8% 4% 8% 1% 13% 6% 6% 8% 1% 13% 6% 5% 10% 0% 13% 6% 3% 1% 21% 4% 1H16 1H17 1H16 1H17

16 The table below disclosure the Fiscal Regimen by concession and presents those which held the Fiscal benefit, the expiration of the benefit and the PIS and COFINS rate of each concession. According to the Law 12,973 in July 2015 there was a change at the presumption base to 32% for assets within the Lucro Presumido fiscal regimen. Concession Fiscal Regimen Fiscal Subsidy % Area Expiration PIS COFINS TSN Real Sudene 84% % 3.00% NVT Real Sudam 73% % 3.00% GTESA Real Sudene 100% % 3.00% PATESA Real Sudene 100% % 3.00% Munirah Real Sudene 84% % 3.00% ETEO Real % 3.00% NTE Real Suspended % 3.00% STE Real % 3.00% ATE I Real % 3.00% ATE II Real Under Renovation % 7.60% ATE III Real Sudam 100% % 7.60% São Gotardo Presumido % 3.00% Mariana Presumido % 3.00% Miracema Presumido % 3.00% Janaúba Real % 7.60% Aimorés Presumido % 3.00% Paraguaçu Presumido % 3.00% ETAU Real % 3.00% BRASNORTE Real Sudam 100% % 7.60% EATE Real Sudam 100% % 3.00% ENTE Real Sudam 100% % 3.00% ECTE Real % 3.00% ETEP Real Sudam 100% % 3.00% ERTE Presumido % 3.00% LUMITRANS Presumido % 3.00% EBTE Real Sudam 100% % 7.60% ESDE Presumido % 7.60% STC Presumido % 3.00% ETSE Presumido % 3.00% ESTE Real % 3.00% 16 ERB1 Presumido 0.65% 3.00%

17 17 Net Income x 2Q16: IFRS IFRS Net Income amounted to R$ 72.0 million, down 65.2% y.o.y. The equity method is added to the comparison, reflecting the accounting principles. The chart below presents IFRS Net Income, comparing with the IFRS figures of 2Q16 and the events variations which impacted the % (-135) Q16 Net Income Δ Net Revenue Δ Costs, Expenses and D&A Δ Equity Method Δ Net Financial Result Δ Taxes Net Income Net Income: IFRS X Regulatory The chart below presents the Net Income, comparing the IFRS results from Regulatory results % (-204) Regulatory Net Income Δ Net Revenue Δ Costs, Expenses and D&A Δ Equity Method Δ Taxes IFRS Net Income

18 18 Dividends and Interest on Equity On May 31, 2017, Taesa distributed R$ million as interim dividends and interest on equity related to the first quarter of This amount can be divided into (i) interim dividends of R$ million (R$ 0.29/unit) and (ii) interest on equity of R$ 78.1 million (R$ 0.23/unit). The approval occurred at the board of director s meeting held on May 17, and shares started being traded ex-dividends and interest on equity as of May % 95% 95% 95% 95% 95% 87% 88% 91% 94% 91% 91% H17 Extra (*) Payout IFRS Net Income (R$ mn) Dividends and JCP (R$ mn) * IFRS Reserve

19 19 Indebtedness Outstanding gross debt amounted to R$ 3,449 million and the cash balance totaled R$ 728 million, resulting in a net debt of R$ 2,721 million in the quarter. R$ mn Net Debt % Outst. Debt 1Q17 % Outst. Debt Chg. Chg.% Short Term 1, % % % TJLP % % % Fixed Coupon 9 0.3% 9 0.3% (0) -0.1% CDI % % % IPCA % % % Long Term 2, % 2, % 6 0.3% TJLP % 0 0.0% (0) -7.1% Fixed Coupon % % (2) -5.0% CDI % % (1) -0.4% IPCA 2, % 2, % % Total Debt 3,449 3, % (-) Cash and cash equivalents* (728) (720) (9) 1.2% (=) Net Debt 2,721 2, % 1 - Gross debt and net debt include the balance of derivative financial instruments. 2 - Cash is the sum of the lines Cash and Cash Equivalent and Financial Investments The variation of the total indebtedness for was mainly due to the increase in gross debt, which occurred as a result of interest accrued over the period. The balance of cash and investments was affected by the receipt of dividends from the subsidiaries, jointly-controlled subsidiaries and associated companies, and the generation of operating cash in the quarter, which were offset by the payment of dividends in the period. Consolidating proportionally the jointly-controlled subsidiaries and associated companies, total gross debt would be R$ 3,967 million and the cash balance would be R$ 842 million, considering the following amounts: (i) TBE debt in the amount of R$ million and cash/investments of R$ 97.8 million; (ii) ETAU debt in the amount of R$ 15.3 million cash/investments of R$ 13.9 million; and (iii) Brasnorte cash/investments in the amount of R$ 1.5 million. Considering the proportional net debt of the jointly-controlled subsidiaries and associated companies, the net debt to EBITDA ratio stood at 1.7x in, 35% lower than the ratio of 2.6x recorded in 2Q16. Debt by Company (R$ mn) Capital Structure (Book Value) Company Gross Debt (R$ 000) Cash Balance (R$ 000) Net Debt (R$ 000) TAESA 3, ,721 Brasnorte (38.7%) ETAU (52.6%) TBE (49.99%) TOTAL 3, ,126 61% 39% Net Debt Equty (book value)

20 20 The debt from controlled and associated companies is disclaimed below, proportionally. Company Creditor Index Principal (R$ / 000) Interest (R$ / 000) Cost Issue Rating Maturity Amort Coupons per Year 2nd Debentures 3rd Debentures CDI 122, CDI + 1.6% Aa1.br Dec Annual 1 CDI 72, CDI + 1.6% Aa2.br Dec Annual 1 CDI 664,930 60,544 CDI +0.8% Br.AAA Oct Bullet 1 IPCA 1,085,806 36,527 IPCA % Br.AAA Oct Annual 1 IPCA 961,121 33,990 IPCA % Br.AAA Oct Annual 1 SWAP - CITIBANK* CDI 350,000 9, % CDI - Sep Bullet 1 Taesa FINAME Fixed Coupon % - Aug Monthly 12 FINAME TJLP 90 0 TJLP + 4.2% - Aug Monthly 12 FINAME Fixed % - Jul Monthly 12 FINAME Fixed 13, % - Dec Monthly 12 FINAME Fixed % - Aug Monthly 12 FINAME Fixed 22, % - Jun Monthly 12 SGT FINAME Fixed 13, % - Dec Monthly 12 BNDES BoC BoC + 4% - Jan Monthly 12 TJLP 1,811 7 TJLP + 4% - Jan Monthly 12 ETAU 1st Debentures CDI 5, % CDI - Dec Bullet 1 BNDES Selic 3, SELIC + 3,76% - Aug Monthly 12 BNDES TJLP 2, TJLP + 5,20% - Aug Monthly 12 FINAME Fixed 1, % - Jan Monthly 12 2nd Debentures CDI 14, CDI % Aaa.br Oct Semiannual 2 3rd Debentures CDI 72, CDI % - Mar Quarterly 4 4rd Debentures CDI 60,734 1, % CDI - Aug Quarterly 4 EATE 5th Debentures - 1st CDI 62, % CDI - Sep Monthly 12 5th Debentures - 2nd CDI 26, % CDI - Sep Monthly 12 EBTE ECTE ENTE BNDES TJLP 66, TJLP % - May Monthly 12 Fixed 5, % - Nov Monthly 12 2nd Debentures CDI 3, CDI % Aa2.br Oct Semiannual 2 3rd Debentures CDI 12, CDI % - May Quarterly 4 2nd Debentures CDI 94,743 1, % CDI - Aug Quarterly 4 3rd Debentures - 1st CDI 13, % CDI - Sep Quarterly 4 3rd Debentures - 2nd CDI 5, % CDI - Sep Quarterly 4 ETEP 2nd Debentures CDI 26, % CDI - Aug Quarterly 4 ESDE ETSE TRANSLESTE TRANSIRAPÉ BNDES TJLP 7, TJLP % - Apr Monthly 12 Fixed 4, % - Sep Monthly 12 BNDES TJLP 6, TJLP % - Nov Monthly 12 BNDES Fixed 5, % - Nov Monthly 12 BDMG Fixed % - Mar Monthly 12 BNB Fixed % - Mar Monthly 12 1st Debentures CDI 2, % CDI - Aug Quarterly 4 BDMG Fixed % - Jul Monthly 12 BDMG Fixed % - Jan Monthly 12 BDMG Fixed % + TJLP - Apr Monthly 12 BDMG Fixed % + TJLP - Oct Monthly 12 1st Debentures CDI CDI % - Nov Semiannual 2 Mutuo CDI % + TJLP - Nov Bullet 1 BNDES Fixed % - Apr Monthly 12 TRANSUDESTE 1st Debentures CDI CDI % - Nov Semiannual 2 Total 3,820, ,439 *The debt was issued in USD indexed to Libor but, as it has a swap to CDI, the final value in R$ after swap was considered as the debt amount.

21 21 Breakdown of the IFRS Revenues The Financial Asset Income is the result of the return rate multiplied by the Financial Asset balance. Monetary Adjustment of Financial Asset is the monthly recognition of inflationary effects.. In the Statement of Income (DRE), the Financial Asset Income, the Monetary Adjustment of Financial Asset and the Construction Revenue are recorded as Income, as shown in the table below. O&M Revenue is annually adjusted for inflation (IGPM or IPCA), similarly to RAP. The Variable Portion (PV) is the penalty due to the unavailability of the lines (see details on page 6). PV and other adjustments started being accounted for in the caption Variable portion and other income. R$ mn Concession Financial Asset FA - Monetary Income adjustment Construction O&M PV NVT 43.0 (23.8) (1.5) TSN 22.1 (12.1) (0.9) MUN 2.5 (1.6) GTE 0.7 (0.5) PAT 2.9 (1.6) (0.0) ETE 8.8 (6.7) (0.0) ETA 1.0 (1.8) (0.0) BRA (0.0) NTE 13.8 (7.5) (3.6) STE 7.7 (5.9) (0.0) ATE 15.6 (13.0) (0.7) ATE II 20.9 (19.3) ATE III SÃO GOTARDO EATE 15.3 (18.3) EBTE ECTE 1.1 (1.4) ENTE 9.4 (12.5) ERTE 2.0 (3.0) ETEP 3.0 (3.6) Lumitrans 1.0 (1.4) STC ESDE ETSE 0.6 (5.0) ESTE MARIANA MIRACEMA Janaúba Total (130.4) (6.4) The Consolidated amount is the sum of each concession weighted by Taesa s stake.

22 22 Financial Asset Financial Asset 1Q17 Financial Asset Income Mon. Adj. of Financial Asset O&M Revs Const. Revs RAP Financial Asset Concession Financial Asset 2T17 (R$ mn) Annual Rate Monthly O&M (R$ mn) cycle '16-17 RAP Concessions³ (R$ mn) cycle '16-17 End Concessions RAP reduction NVT 1, % Dec-30 Jun-18 TSN % Dec-30 Jun-18 TSN Reinforcement % Dec-30 No MUN % Feb-34 Oct-20 GTE % Jan-32 Aug-18 PAT % Dec-32 Sep-19 ETE % May-30 Oct-16 ETA % Dec-32 Apr-20 BRA¹ % Mar-38 No BRA¹ Reinforcement 5 5.7% Mar-38 No NTE % Jan-32 Jan-19 STE % Dec-32 Jul-19 ATE I % Feb-34 Oct-20 ATE II % Mar-35 Dec-21 ATE III¹ % Apr-36 Mar-23 ATE III¹ Reinforcement % Apr-36 No Sâo Gotardo¹ % Aug-42 No EATE % Jun-31 Mar-18 EBTE¹ % Oct-38 No ECTE % Nov-30 Mar-17 ENTE % Dec-32 Feb-20 ERTE % Dec-32 Sep-19 ETEP % Jun-31 Aug-17 Lumitrans % Feb-34 Oct-22 STC¹ % Apr-36 Nov-22 ESDE¹ % Nov-39 No ETSE¹ % May-42 No Transleste 8 5.2% Feb-34 Dec-20 Transirapé 8 4.5% Mar-35 Feb-22 Transudeste 5 5.2% Mar-35 May-22 Mariana¹ ² % May-44 No Miracema² % Jun-46 No Janaúba % feb-47 No Aimorés % feb-47 No Paraguaçu % feb-47 No ESTE % feb-47 No Total 8, ,817.7 ¹ The RAPs must be grossed up of PIS/COFINS ² under construction

23 23 Income Statement IFRS Regulatory Income Statement 2Q16 Chg. Chg. % 2Q16 Chg. Chg. % GROSS OPERATING REVENUES Service revenues , ,445 33, % Operation and Maintenance 137, ,234 13, % Financial Asset Income 150, ,493 (13,409) -8.20% Financial Asset - Monetary adjustment (87,521) 84,449 (171,970) % Construction and indemnity 3,554 3, % Variable Portion and Other Revenues (3,888) (15,134) 11, % (3,888) (15,134) 11, % TOTAL GROSS REVENUES 199, ,456 (160,759) -44.6% 476, ,311 44, % PIS/Cofins (9,923) (18,211) 8, % (23,141) (21,419) (1,722) 8.0% Service Tax (45) (36) (9) 25.00% (45) (36) (9) 25.0% RGR, P&D, TFSEE, CDE and PROINFA (20,458) (18,852) (1,606) 8.5% (20,458) (18,852) (1,606) 8.5% Gross Revenue deductions (30,426) (37,099) 6, % (43,644) (40,307) (3,337) 8.3% NET REVENUES 169, ,357 (154,086) -47.7% 433, ,004 41, % COSTS AND OPERATING EXPENSES (55,429) (55,886) % (95,236) (100,913) 5, % Personnel (27,676) (30,624) 2, % (27,676) (30,624) 2, % Material (6,732) (4,695) (2,037) 43.4% (461) (427) (34) 8.00% Third party services (12,875) (10,417) (2,458) 23.60% (12,875) (10,417) (2,458) 23.60% Depreciation and amortization (809) (640) (169) 26.4% (46,887) (49,935) 3, % Other operating expenses (7,337) (9,510) 2, % (7,337) (9,510) 2, % Costs and Expenses (54,620) (55,246) % (48,349) (50,978) 2, % GROSS PROFIT 113, ,471 (153,629) -57.4% 337, ,091 46, % Equity method 3,742 52,380 (48,638) -92.9% 59,825 42,660 17, % Revenues from financial investments 18,595 13,655 4, % 18,595 13,655 4, % Financial Expenses (71,657) (113,523) 41, % (71,657) (113,523) 41, % Financial Revenues (Expenses) (53,062) (99,868) 46, % (53,062) (99,868) 46, % NET INCOME BEFORE INCOME TAXES 64, ,983 (155,461) -70.7% 344, , , % Income taxes and social contribution 7,512 (12,777) 20, % (68,686) (20,749) (47,937) % NET INCOME BEFORE IOE 72, ,206 (135,172) -65.2% 276, ,134 62, % NET INCOME 72, ,206 (135,172) -65.2% 276, ,134 62, % EBITDA 114, ,111 (153,460) -57.2% 384, ,026 43, % EBITDA Margin 67.7% 82.9% pp 88.8% 87.0% 1.8 pp

24 24 Income Statement IFRS R$ 000 IFRS TAESA ETAU Brasnorte TBE Aimorés Paraguaçu GROSS OPERATING REVENUES Operation and Maintenance 137,468 1, , Financial Asset Income 150,084 1,029 1,513 37, Financial Asset - Monetary adjustment (87,521) (1,765) 791 (41,869) - - Construction and indemnity 3, Variable Portion and Other Revenues (3,888) , TOTAL GROSS REVENUES 199,697 1,371 2,794 13, Pis/Cofins (9,923) (38) (251) (980) - - Service Tax (45) RGR, P&D, TFSEE, CDE and PROINFA (20,458) (212) (87) (4,784) - - Revenue deductions (30,426) (250) (338) (5,764) - (1) NET REVENUES 169,271 1,121 2,456 7, COSTS AND OPERATING EXPENSES (55,429) (940) (856) (10,135) (75) (150) Personnel (27,676) (9) (262) (4,259) (69) (146) Material (6,732) (191) (218) (1,635) - 1 Third party services (12,875) (746) (184) (3,115) (6) (5) Depreciation and amortization (809) - - (221) - - Other operating expenses (7,337) 6 (192) (906) - - Costs and Expenses (54,620) (940) (856) (9,914) (75) (150) GROSS PROFIT 113, ,600 (2,777) - (72) - (146) Equity method 3, NET FINANCIAL EXPENSES - - Revenues from financial investments 18, , Financial expenses (71,657) (598) (21) (13,523) - - Financial Revenues (Expenses) (53,062) (295) 45 (11,720) - - NET INCOME BEFORE INCOME TAXES 64,522 (114) 1,645 (13,778) - (72) - (146) Income taxes and social contribution 7, (388) 16,557 (1) (2) NET INCOME - 72,034 - (73) - 1,257-2,779 - (73) - (148) EBITDA 114, ,600 (2,556) (72) (146) EBITDA Margin 67.7% 16.1% 65.1% -34.7% % %

25 25 Regulatory Income Statement R$ 000 Regulatory TAESA ETAU Brasnorte TBE Aimorés Paraguaçu GROSS OPERATING REVENUES Service revenues 480,761 5,292 2, , Variable Portion and Other Revenues (3,888) (2,934) - - TOTAL GROSS REVENUES 476,873 5,860 2, , Pis/Cofins (23,141) (221) (256) (5,016) - - Service Tax (45) RGR, P&D, TFSEE, CDE and PROINFA (20,458) (212) (87) (4,784) - - Revenue deductions (43,644) (433) (343) (9,800) NET REVENUES 433,229 5,427 2, , COSTS AND OPERATING EXPENSES (95,236) (1,309) (1,294) (18,512) (75) (151) Personnel (27,676) (9) (262) (4,259) (69) (146) Material (461) (2) (6) (168) - - Third party services (12,875) (746) (184) (3,115) (6) (5) Depreciation and amortization (46,887) (558) (649) (10,065) - - Other operating expenses (7,337) 6 (193) (905) - - Costs and Expenses (48,349) (751) (645) (8,446) (75) (151) - - GROSS PROFIT 337,993 4, ,613 (75) (151) - - Equity method 59, NET FINANCIAL EXPENSES - - Revenues from financial investments 18, , Financial expenses (71,657) (598) (21) (13,530) - - Financial Revenues (Expenses) (53,062) (295) 45 (11,727) NET INCOME BEFORE INCOME TAXES 344,756 3,823 1,036 82,574 (75) (151) Income taxes and social contribution (68,686) (1,297) (182) (12,197) NET INCOME 276,070 2, ,377 (75) (151) EBITDA 384,880 4,676 1, ,678 (75) (151) EBITDA Margin 88.8% 86.2% 71.8% 92.5% 0% 0% The difference between the equity method of Taesa and the sum of the results of ETAU, Brasnorte and TBE is due to the amortization of the goodwill arising from the allocation of the price paid in the acquisition of TBE.

26 26 EBITDA Reconciliation EBITDA reconciliation exclude the impact of the equity method at the Company s result. R$ MM IFRS EBITDA Reconciliation 2Q16 Chg. Chg. % Net Income (135.2) -65.2% Income taxes and social (7.5) 12.8 (20.3) % contribution Net Financial Expenses (46.8) -46.9% Depreciation and amortization % Equity method (3.7) (52.4) % EBITDA (153.5) -57.2% EBITDA Margin 67.7% 82.9% 0.0% pp R$ MM Regulatory EBITDA Reconciliation 2Q16 Chg. Chg. % Net Income % Income taxes and social % contribution Net Financial Expenses (46.8) -46.9% Depreciation and amortization (3.0) -6.1% Equity method (59.8) (42.7) (17.2) 40.2% EBITDA % EBITDA Margin 88.8% 87.0% 0.0% 1.8 pp

27 27 Balance Sheet R$ 000 IFRS Regulatory Balance Sheet Adjustment Assets Cash and cash equivalent 84,519-84,519 Financial Investments 639, ,827 Receivables 174, ,975 Financial Asset 1,218,477 1,218,477 - Recoverable taxes 66,325-66,325 Dividends and interest on equity to receive 36,762-36,762 Financial instruments derivatives Other Current Assets 54,578-54,578 Total Current Assets 2,275,463 1,218,477 1,056,986 Financial Investments 3,979-3,979 Financial Asset 4,310,995 4,310,995 - Deferred income tax and social contribution 81 (516,294) 516,375 Income tax and social contribution Investment 1,715, ,730 1,520,983 Receivables 13,703-13,703 Escrow deposits 21,009-21,009 Other receivables 18,202-18,202 Fixed Assets 20,048 (4,034,341) 4,054,389 Intangible Assets 25,615 (128,234) 153,849 Total Non Current Assets 6,129,371 (173,144) 6,302,515 Total Assets 8,404,834 1,045,333 7,359,501 Liabilities Trade accounts payable 13,648-13,648 Taxes 86,932-86,932 Borrowings and financing 9,121-9,121 Debentures 991, ,687 Financial instruments: derivatives - swap Dividends to pay 5-5 Regulatory fees 72,516-72,516 Other payables 26,273-26,273 Total Current Liabilities 1,200,182-1,200,182 Borrowings and financing 364, ,750 Debentures 2,047,069-2,047,069 Financial instruments derivatives 36,792 36,792 Deferred taxes and social contributions 120,228 (149,597) 269,825 Deferred Taxes 290, ,224 - Provisions for tax, social security, labor and civil contingencies 10,523-10,523 Special obligations - (13,035) 13,035 Other payables 106, ,953 Total Non Current Liabilities 2,976, ,592 2,848,947 Shareholder's Equity Paid-in capital 3,042,035-3,042,035 Capital Reserve 594, ,507 Earnings reserve 496, ,328 Proposed additional dividends Interim dividends and interest on equity (178,158) (178,158) - Accumulated Losses - 1,358,292 (1,358,292) Retained earnings 273,401 (262,393) 535,794 Total Shareholder's Equity 4,228, ,741 3,310,372 Total Liabilities and Shareholder's Equity 8,404,834 1,045,333 7,359,501