Rio de Janeiro, May 05, 2017

Transcription

1 RESULTS

2 Rio de Janeiro, May 05, 2017 Transmissora Aliança de Energia Elétrica S.A. TAESA (BM&FBovespa: TAEE11), one of the largest electric power transmission groups in Brazil, announces today its results for. The consolidated interim financial statement has been prepared and is presented in accordance with Brazilian accounting standards ( BRGAAP ) and the IFRS issued by the International Accounting Standards Board (IASB). The results presented in the regulatory format are not audited. This information is presented in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of Interim Financial Information (ITR). The Regulatory Information hereby stated was prepared as per the current structure of the electric sector accounting manual, issued by ANEEL, according to which all the investments done for the construction of a transmission line are registered as a fixed asset and the effects of the adoption of ICPC 01 (R1) (IFRS 12) are written off, including the fiscal impact (deferred income taxes, CSLL, PIS and COFINS) booked due to time differences that derived from the adoption of this principle. Taesa declares dividends based on the revised results. In line with the accounting rules, Taesa does not consolidate proportionally the jointly controlled and Associated companies. This way, the results of ETAU, Brasnorte, Aimorés, Paraguaçu and TBE are booked on Equity Method in both IFRS and Regulatory formats. Conference Call in English May 08, 2017 Monday Brazil time 14h New York time 13h Dial in: Senha: Taesa Marco Antônio Resende Faria Marcus Pereira Aucélio Leonardo Bonorino IR Contact CEO CFO and IRO IR Manager investor.relations@taesa.com.br Telphone

3 Resultados Growing with value generation The beginning of 2017 proved Taesa s growth capacity. As a result of the operational and financial discipline historically adopted by the Company, Taesa won lot 1 of the Auction 005/2016 of Public Power Transmission Lines promoted by ANEEL, in addition of the 5 concession acquired in the auction of Considering just Taesa s stake, the accruall in the RAP was R$ mn, that represents a capex of R$ 850 mn in 600 km of transmission lines (double circuit) and 3 substations. The efficiency in operational cash flow is proven by the Regulatory EBITDA that totaled R$ mn in the fisrt quarter of 2017, 7.4% higher than the same quarter of The Regulatory EBITDA Margin was 89.9%. The IFRS Net Income reached R$ mn, down 20.6% compared to 1Q16. The main impact in the quartely comparison was the recognition of annual inflationary effect, once the accumulated IGP-M and IPCA for were 1.26% and 1.01%, respectively, while the inflation rates for 1Q16 were 2.95% (IGP-M) and 3.16% (IPCA). Over the 3 first months of 2017, the transmission lines annual availability rate was 99.98%, and the variable portion amounted to R$ 1.17 mn (discount equivalent to 0.2% of Taesa s revenue), down 61% QoQ. Taesa remains prepared to target new opportunities of the sector, with low level of levarage in short term (net debt of R$ bn and net debt to EBITDA ratio of 1.7) which allows the Company acquires new assets by M&A and Greenfiled. Keys Figures Consolidated R$ mn 1Q16 Chg. Chg. % Net Revenues Reg % EBITDA Reg % EBITDA Margin Reg. 89.9% 90.3% -0.3 bps Net Revenues IFRS (72.7) -17.9% Net Income IFRS (52.3) -20.6% Net Debt BS 2, ,000.0 (314.0) -10.5% TAEE11 (08 Nov) % Market Cap 7, , , % Consolidated and Associated Companies R$ mn 1Q16 Chg. Chg. % Net Revenues Reg % EBITDA Reg % EBITDA Margin Reg. 90.3% 90.5% -0.2 bps Net Revenues IFRS (118.5) -22.2% Net Income IFRS (52.3) -20.6% 3

4 1. Overview 1.1 Taesa and the Transmission Sector Corporate Structure 7 2. Financial 2.1 Main events of Operational Performance RAP Cycle Net Revenues IFRS Costs, Expenses, Depreciation and Amortization IFRS EBITDA / EBITDA Margin IFRS Regulatory Net Revenues (Non-IFRS) Costs, Expenses, Depreciation and Amortization (Non-IFRS) Regulatory EBITDA / EBITDA Margin (Non IFRS) 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 Non-IFRS) EBITDA Reconciliation Balance Sheet TBE Balance Sheet Cash Flow 38

5 5 Corporate Structure The 33 transmission concessions or stakes owned by Taesa are: (i) 10 held within the holding company (TSN, NVT, ETEO, GTESA, PATESA, Munirah, NTE, STE, ATE e ATE II), (ii) 5 integral subsidiaries (ATE III, São Gotardo, Mariana, Miracema and Janaúba) and (iii) 18 stakes (ETAU, Brasnorte, Aimorés, Paraguaçu and TBE). TBE is a group of 14 stakes. FIA Taurus FIP Coliseu CEMIG Free Float 1.0% 13.9% 31.5% 53.6% TBE 100% 100% 100% 100% 100% 52.6% 38.7% 50% 50% 49.9% ATE III São Gotardo Mariana Miracema Janaúba ETAU Brasnorte Paraguaçu Aimorés TBE Fully Consolidated Consolidated with Equity Method TBE Corporate Structure TBE 50% 50% 50% 19% 50% EATE ETEP ENTE ECTE ERTE 62% STC (1) 80% Lumitrans (2) 100% ESDE (8) 19% 100% STC (1) ETSE (9) 10% Transleste (3) 10% 10% 100% 51% Transudeste (4) Transirapé (5) ESTE (6) 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% 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 the accumulated from January to March 2017, as shown in the chart below, which presents Taesa's figures, not considering ETAU, Brasnorte and TBE. Ø 99.97% 99.97% 99.98% 99.97% 99.98% 99.96% 99.98% 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 8,670 hours)/100 x 100 The indicator that shows the impact of 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 RAP/PV 1.2% 1.0% 1.4% 1.3% Ø 0.9% 0.5% 0.7% 0.2% Q16 The PV of R$ 1.17 mn was mainly due to (i) scheduled maintenance at 500 kv Colinas-Ribeiro Gonçalves TL (ATE II), (ii) programnable shutdowns on the 500 kv Imperatriz-Colinas (NVT) TL and automatic shutdown at Serra da Mesa (NVT) series capacitor bank and (iii) automatic shutdown at 500 kv Serra da Mesa-Serra da Mesa II (TSN)

7 7 RAP Cycle On June 28, 2016, ANEEL has published the resolution 2,098/16 with the Annual Allowed Revenues to Transmission Concessions for the cycle. The concessions adjusted by IGPM received a 11.1% adjustment and the concessions adjusted by IPCA received a 9.3% adjustment. 2015/ /2017 RAP (R$ mn) Cycle Cycle IGP-M Adjustment 4.1% 11.1% Novatrans TSN² Munirah GTESA PATESA ETAU ¹ ETEO NTE STE² ATE I ATE II² EATE¹ ETEP¹ ENTE¹ ECTE¹ ERTE¹ Lumitrans¹ Transleste¹ Transirapé¹² Transudeste¹ IPCA Adjustment 8.5% 9.3% ATE III³ São Gotardo³ Mariana Miracema Janaúba Aimorés Paraguaçu Brasnorte¹²³ STC¹³ EBTE¹²³ ESDE¹³ ETSE¹³ ESTE Total 2,259 2,818 Considering the jointly controlled and Associated concessions, Taesa's RAP for the cycle is R$ 2,818 mn thousand, of which 64% is consolidated at the holding level. The operational RAP amount to R$ 2,429 mn. The cycle adjustment was different of the inflation in the following concessions: (i) the adjustment at Patesa was above the inflation due to the reinforcements which became operational, (ii) a reinforcement at EATE had a tariff review lower than inflation adjustment, (iii) ETEO and ECTE reached the 16 th year of operation, therefore their revenues were reduced by 50% according with the category 2 concession contract (as the reduction of the RAP occurred in different dates in the cycle, an average of the cycle RAPs was performed), (iv) Mariana and Miracema are under construction and the Concessions Janaúba, Aimorés, Paraguaçu and ESTE were acquired in the 2016 auction. The RAP of ATE III, São Gotardo, Mariana, Miracema, Janaúba, Aimorés, Paraguaçu, Brasnorte, EBTE, STC, ESDE, ETSE and ESTE concessions must be grossed up of PIS/COFINS. RAP by Category Cat 3 16% ¹ RAP amount regarding Taesa s proportional stake on February 28, 2017 ² Including reinforcement projects ³ RAP must be grossed up of PIS/COFINS 4 Under construction 84% Cat 2

8 8 Net Revenues IFRS Net Revenues IFRS reached R$ 332,3 mn, down 17,9% 1Q16. Inflation adjustment was the main impact of the variation. The inflationary adjustment of the revenue is guaranteed by the concession agreement. Due to this predictable adjustment, the Company recognize the inflation effects monthly. This way, the inflationary effect is monthly diluted considering the IGP-M or IPCA inflation performed in the previous month. The rates used to readjust the revenue were: IGP-M of 0.54%, 0.64% and 0.08% and IPCA of 0.3%, 0.38% and 0.33% (regarding December 2016, January and February 2017). In 1Q16, the IGP-M was 0.49%, 1.14% and 1.29% and the IPCA was 0.96%, 1.27% and 0.9% for the same months. R$ mn Consolidated Consolidated and Associated Companies Net Revenue 1Q16 Chg. Chg.% 1Q16 Chg. Chg.% Operation and Maintenance % % Financial Asset Income (9.5) -5.8% (10.5) -5.1% Financial Asset - Monetary adjustment (96.2) -61.0% (146.8) -61.0% Construction and indemnity 15.4 (0.5) % % Total IFRS Revenues (76.6) -17.2% (128.0) -21.8% PV (1.2) (3.0) % (1.2) (4.5) % Other % % Total Gross Revenues (74.7) -16.8% (124.3) -21.2% Deductions (38.2) (40.2) % (47.3) (53.1) % Total Net Revenues (72.7) -17.9% (118.5) -22.2% The quarterly variation and composition of Taesa's revenue mainly reflects the following aspects: O&M's revenue increased in the quarterly comparison, due to the annual inflation readjustment for the Cycle. The Financial Asset Income is equivalent to the multiplication of the reference rate by the financial asset. The Monetary Correction of the financial asset consists of the monthly inflation readjustment. In the, the amount was R$ 61.6 mn. The negative variation between the analyzed periods occurred due to the difference in inflation. Taesa's Construction Revenue in amounted to R$ 15.4 mn, mainly due to: (i) R$ 9.0 mn in Mariana, (ii) reinforcements in Patesa in the amount of R$ 3.3 mn and (Iii) R$ 2.1 mn related to the Janaúba concession The line Other Revenues, the main impacts were: (i) quotas that are transferred to PROINFA and CDE and (ii) back office provided to ETAU and Brasnorte. The Deductions line considers: (i) PIS / COFINS, where the percentage varies according to each concession, (ii) quotas of: 1% of the revenue as P&D and 2.5 of RGR, (iii) quotas that are transferred to PROINFA and CDE and (iii) quotas transferred to PROINFA and CDE and (iv) Electricity Service Inspection Fee (TFSEE). The major impact in the deduction line was caused by the deferred PIS/Cofins, due to the higher revenue in the regulatory results when compared to IFRS results.

9 9 Costs, Expenses, Depreciation and Amortization IFRS Costs and Dep/Amort totaled R$ 65.5 mn in, 63% higher than 1Q16. The variation was influenced, mainly, by costs with the construction of Mariana. The main variation on IFRS costs were: (i) the variation in the personnel line was impacted by the collective labour agreement, in line with the inflation adjustment, (i) construction and O&M costs booked in the material line were mainly influenced by the construction of Mariana (R$ 7.0 mn in conductor cables and R$ 1.1 mn with land indemnity), basic Janaúba project in the amount of R$ 1.9 mn and reinforcements in Patesa totaling R$ 3.0 mn and (ii) expenses with maintenance of easement transmission lines strips accounted in the line of third-party services, which was made in another period in The IFRS costs and expenses of TBE, ETAU and Brasnorte represented R$ 9 mn, R$ 1 mn and R$ 0.6 mn, respectively. R$ mn Consolidated Consolidated and Associated Companies IFRS 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % Personnel (30.5) (28.1) (2.3) 8.3% (34.9) (32.1) (2.8) 8.8% Material (20.7) 0.4 (21.2) % (21.5) (1.5) (20.0) % Third Party Services (9.0) (6.9) (2.1) 30.7% (13.5) (11.3) (2.2) 19.2% Other (4.5) (4.5) (0.0) 0.6% (5.4) (5.3) (0.1) 1.3% Total (64.7) (39.1) (25.7) 65.7% (75.3) (50.2) (25.1) 49.9% Dep/Amort (0.8) (1.1) % (1.1) (1.3) % Total (65.5) (40.2) (25.3) 63.0% (76.4) (51.5) (24.9) 48.3% EBITDA / EBITDA Margin IFRS EBITDA IFRS no totalizou R$ mn com margem EBITDA de 80.5%. The EBITDA IFRS reflects the impact of the inflation adjustment in the financial asset income, as described on page 8. Thus, the negative variation between the and 1Q16 EBITDA IFRS, occurred mainly due to the difference between the inflation rates that adjusted the monetary correction of the financial asset. The EBITDA of TBE, ETAU and Brasnorte represented R$ 67.6 mn, R$ 2.8 mn and R$ 2.1 mn, respectively. The EBITDA IFRS is not a gauge that reflects the operational cash flow of the Company. The adoption of IFRS caused a deviation between P&L and Cash Flow. R$ mn Consolidated Consolidated and Associated Companies EBITDA IFRS 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % Net Revenues (72.7) -17.9% (118.5) -22.2% Costs and Expenses (64.7) (39.1) (25.7) 65.7% (75.3) (50.2) (25.1) 49.9% EBITDA (98.3) -26.9% (143.6) -29.7% EBITDA margin 80.5% 90.4% 0.0% -9.8 bps 81.9% 90.6% 0.0% -8.7 bps

10 10 Regulatory Net Revenues (Non-IFRS) Regulatory Net revenues totaled R$ mn, 7.8% above the 1Q16. The recognition of the inflationary effects described on page 8, does not impact the regulatory result, since it is an accounting change that affects only the IFRS. The category II concession ETEO, had its RAP reduced by 50% in the cycle and some reinforcements had tariff review, resulting a readjustment lower than the inflation. R$ mn Consolidated Consolidated and Associated Companies Net Revenues 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % RAP Concessions % % PV (1.2) (3.0) % (1.2) (4.5) % Service Revenues % % Other Revenues % % Total Gross Revenues % % Deductions (42.9) (39.4) (3.4) 8.7% (53.4) (48.8) (4.6) 9.4% Total Net Revenues % % The Net Revenue of TBE, ETAU and Brasnorte represented R$ mn, R$ 5.4 mn and R$ 2.3 mn, respectively. Costs, Expenses, Depreciation and Amortization (Non-IFRS) Costs, Expenses and Dep / Amort totaled R$ 91.2 mn in, 1.4% higher than in 1Q16. The main changes in costs between and 1Q16 occurred in the line of third-party services, where the most relevant impact was caused by expenses with maintenance of easement transmission lines strips in TSN and Novatrans, which in 2016 was carried out in another period. The differences between Regulatory costs and IFRS are in the lines of material and depreciation. In the material line, the IFRS accounts for the investment in the construction of new assets, reinforcements and improvements, in addition to the cost of material. In the line of depreciation, the Regulatory depreciates fixed assets, but in IFRS the accounting of the investment is through the financial asset, which reduces the amount of fixed assets. The costs and expenses of TBE, ETAU and Brasnorte represented R$ 8.7 mn, R$ 0.8 mn and R$ 0.5 mn, respectively R$ mn Consolidated Consolidated and Associated Companies Regulatory (Non-IFRS) 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % Personnel (30.5) (28.1) (2.3) 8.3% (34.9) (32.1) (2.8) 8.8% Material (0.3) (0.1) (0.1) 93.0% (0.5) (0.3) (0.1) 47.0% Third Party Services (9.0) (6.9) (2.1) 30.7% (13.5) (11.3) (2.2) 19.2% Other (4.5) (4.5) (0.0) 0.6% (5.4) (5.3) (0.1) 1.3% Total (44.3) (39.6) (4.6) 11.6% (54.2) (49.0) (5.2) 10.6% Dep/Amort (46.9) (50.3) % (58.2) (61.5) % Total (91.2) (89.9) (1.3) 1.4% (112.5) (110.5) (1.9) 1.7%

11 Regulatory EBITDA / EBITDA Margin (Non-IFRS) Regulatory EBITDA reached R$ mn with Regulatory EBITDA Margin of 89.9% The Regulatoy EBITDA was 7.4% higher than 1Q16, due to the anual inflation adjustment in revenues and costs, along with others costs variations, as mentioned on page 10. In the energy transmission market, the Regulatory EBITDA (Non IFRS) is a key financial indicator, due to its adherence to the Company s operating cash flow. R$ mn Consolidated Consolidated and Associated Companies EBITDA Regulatory (Non-IFRS) 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % Net Revenues % % Costs and Expenses (44.3) (39.6) (4.6) 11.6% (54.2) (49.0) (5.2) 10.6% EBITDA % % EBITDA margin 89.9% 90.3% -0.3 bps 90.3% 0.0% -0.2 bps EBITDA Composition The table below shows how the EBITDA would be considering all the concessions of the Taesa group, proportionally. It is important to highlight that the consolidated result under Brazilian Accounting Principles does not include jointly controlled and Associated Companies (ETAU, BRASNORTE and TBE). 11 EBITDA R$ mn Margin: 90.3% Taesa EBITDA: R$ mn Margin: 89.9% ETAU (52.56%) EBITDA: R$ 4.6 mn Margin: 84.7% BRA (38.66%) EBITDA: R$ 1.8 mn Margin: 80.0% TBE (49.99%) EBITDA: R$ mn Margin: 92.2% Net Revenue R$ mn Opex R$ 44.3 mn Net Revenue R$ 5.4 mn Opex R$ 0.8 mn Net Revenue R$ 2.3 mn Opex R$ 0.5 mn Net Revenue R$ mn Opex R$ 8.7 mn

12 12 Equity Method IFRS Equity Method IFRS totaled R$ 52.3 mn, down 31.9% QoQ. The difference in the jointly controlled and Associated Companies results in the comparison between and 1Q16 occurred mainly due the lower macroeconomic indexes that correct the financial asset, with the IGP-M and IPCA accumulated in 2017 totaling 1.26% and 1.01% (2.95% and 3.16% in 2016, respectively). The accumulated indexes refer to the months of Dec/16 to Feb/17 in 2017 and Dec/15 to Feb/16 in R$ mn IFRS Equity method 1Q16 Chg Chg. % ETAU (0.8) -31.9% Brasnorte (1.2) -42.9% TBE (22.3) -31.3% Aimorés (0.001) - (0.001) Paraguaçu (0.005) - (0.005) Total Equity method (24.4) -31.9% Regulatory Equity Method (Non-IFRS) The Regulatory Equity Method (Non-IFRS) totaled R$ 56.9 mn, 35.7% above 1Q16. The difference between Taesa s equity method and the sum of the results from ETAU, Brasnorte, Aimorés, Paraguaçu and TBE is due to the amortization of the fair value allocated arising from the process of allocation of the price paid for the acquisition of TBE. R$ mn Regulatory (Non-IFRS) Equity method 1Q16 Chg. Chg. % ETAU % Brasnorte % TBE % Aimorés (0.001) - (0.001) Paraguaçu (0.005) - (0.005) Total Equity method Amortization of goodwill - TBE %

13 13 Net Financial In, Net Financial Expenses totaled R$ 70.9 mn, down 47.0% QoQ. R$ mn Consolidated Consolidated and Associated Companies Net Financial Expenses 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % Financial Revenues Revenues from financial investments % % Financial Expenses Borrowings and financing (36.0) -83.6% (36.0) -88.0% Financial instrument (17.2) (74.4) % (17.2) (74.4) % Debentures (74.3) (115.9) % (89.7) (133.0) % Other financial expenses/revenues (1.9) 1.1 (3.1) % (2.6) 0.4 (3.0) % Total (70.9) (133.8) % (86.4) (151.7) % The composition and the variation of the financial results are reflected below: The increase in the financial income compared to same quarter last year, was a result of a stronger cash over the first 3 months of The borrowings and financing line considers: (i) positive exchange variation of 12.7 mn, (ii) borrowings interest of R$ 3.0 mn, of which R$ 2.6 mn are related to the loan subject to the Law and R$ 0.4 mn to FINAME and (iii) negative marked-to-market loan of R$ 2.7 mn. The variation observed in the compared to 1Q16, was due to the depreciation of the dolar against the real which impacted the foreign loan obtained from Citibank. Financial instrument derivatives were mainly influenced by: (i) negative swap exchange variation of R$ 12.7 mn which is annulled with the loan exchange variation, (ii) positive marked-to-market swap of R$ 5.0 mn, (iii) Swap interest of R$ 2.6 mn which is annulled with the interest of the loan subject to the Law and (iv) Swap interest of R$ 12.1 mn. The devaluation of the dólar against the real was the main variation in the quartely comparison. The debentures line considers: (i) negative variation of 20.0 mn, due to the IPCA adjust series in the 3rd issuance of debentures, and (ii) interest incurred of R$ 54.3 mn. The mainly variation in the quartely comparison was the amortization of the 2nd de debentures in December, 2016.

14 14 Taxes In, the IFRS income tax amounted to R$ 46.8 mn. The effective IFRS income tax rate of was influenced by the following reasons: (i) R$ 15.9 mn consolidated SUDAM/SUDENE tax subsidy, (ii) exclusion of R$ 17.8 mn due to fact that the equity method is net of taxes. The main variation in the income tax rate was due to the expiration of the ATE II tax subsidy in ATE II and Patesa are in the renewal process of the SUDAM/SUDENE tax subsidy. The tax subsidy is calculated based on IFRS revenue of each concession. Our tax incentive on the operating profit aims to reduce 75% of the income tax in nominal terms so, normally the greater the Corporate Income Tax (IRPJ), higher will be the gain with the tax benefit and vice versa. 34% 34% 34% 34% 7% 8% 6% 6% 6% 2% 7% 1% 5% 1% 10% 1% 19% 18% 22% 17% IFRS 1Q16 IFRS Regulatory 1Q16 Regulatory Equity Method Tax Subsidy Others Effective Rate R$ mn IFRS Regulatory (Non-IFRS) Reconciliation of income tax 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % Pretax Profit (59.5) -19.3% % IRPJ ans CSLL rate of 34% (84.4) (104.6) % (113.5) (76.6) (36.8) 48.1% Equity method (8.3) -31.8% % SUDAM/SUDENE (6.0) -27.3% (6.0) -27.3% Other % % IRPJ and CSLL recognized in profit (46.8) (54.0) % (74.0) (38.4) (35.7) 93% Effective Rate 18.9% 17.5% 1.3 bps 22.2% 17.0% 5.2 bps

15 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 Under Renovation % 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% 15 ESTE Real % 3.00%

16 16 Net Income IFRS Net Income amounted to R$ mn, down 20.6% QoQ. The equity method is added to the comparison, reflecting the accounting principles. x 1Q16: IFRS The chart below presents IFRS Net Income, comparing with the IFRS figures of 1Q16 and the events variations which impacted the (-20.6%) Q16 Net Income Δ EBITDA Δ Dep/Amort Δ Equity Method Δ Net Financial Result Δ Taxes Net Income Net Income : IFRS X Regulatory (Non-IFRS) The chart below presents the Net Income, comparing the results IFRS to the Regulatory (Non-IFRS) (-22.5%) Regulatory Net Income Δ Net Revenue Δ Costs, Expenses and Depreciation Δ Equity Method Δ Taxes IFRS Net Income

17 17 Dividends and Interest on Equity In 2016, the Company paid R$ mn (R$ 2.74/unit) as dividends and interest on equity. This amount can be split into (i) dividends of R$ mn (R$ 0.94/Unit) regarding the 2015 results approved in Annual General Assembly held on April 18, 2016, (ii) interim dividends of R$ mn (R$ 0.89/Unit) referred the 2016 results and, (iii) interest on equity of R$ mn (R$ 0.91/Unit) regarding the 2016 results. The Company will pay the remaining R$ mn (R$ 0.51) referred 2016 results in May 12, 2017, as approved in the Annual General Assembly held in April 28, % 95% 95% 95% 95% 95% 87% 88% 91% 94% 91% 91% Extra (*) IFRS Net Income (R$ mn) Dividends and IOE (R$ mn) Payout * IFRS Reserve

18 Indebtedness Outstanding effective debt amounted to R$ 3,406 mn, effective Cash and Equivalents totaled R$ 720 mn, hence effective Net Debt reached R$ 2,686 mn. R$ mn Net Debt % Outst. Debt 4Q16 % Outst. Debt Chg. Chg.% Short Term % % % TJLP % % - 0.2% Fixed Coupon % % - 0.0% CDI % % % IPCA % % % Long Term 2, % 2, % % TJLP % % (0) -6.5% Fixed Coupon % % (2) -4.8% CDI % % (2) -0.6% IPCA 2, % 2, % % Total Debt 3,406 3, % (-) Cash and cash equivalents* (719.8) (366.9) (353) 96.2% (=) Net Debt 2,686 2,969 (283) -9.5% * Cash is the sum of the lines Cash and Cash Equivalent + Financial Investments + escrow deposits The gross and net debt include the financial derivative instrument. The changes in Cash and debts were caused mainly by: R $ 40.6 mn in dividends received in March from TBE. Highest generation of operating cash in the first three months of 2017 when compared to the same period of Debt by Company (R$ mn) Capital Structure (Book Value) Company Outstanding Debt (R$ 000) Cash Balance (R$ 000) Net Debt (R$ 000) TAESA 3, ,686 Brasnorte (38.7%) ETAU (52.6%) TBE (49.99%) TOTAL 3, ,170 63% 37% 18 Net Debt Equity (book value)

19 The debt from controlled and Associateds companies is disclaimed below, proportionally. Company Creditor Index 2nd Debentures 3rd Debentures Principal (R$ / 000) Interest (R$ / 000) Cost Issue Rating Maturity Amort CDI 122,459 5,016 CDI + 1.6% Aa1.br Dec /17 1 CDI 72,459 2,969 CDI + 1.6% Aa2.br Dec /17 1 CDI 664,930 41,191 CDI +0.8% Br.AAA Oct Bullet 1 IPCA 1,080,497 23,623 IPCA % Br.AAA Oct /19/20 1 IPCA 956,419 21,976 IPCA % Br.AAA Oct /22/23/24 1 Coupons per Year Taesa SWAP - CITIBANK* CDI 350,000 10, % CDI - Sep Bullet 1 FINAME TJLP/Fixed Coupon TJLP + 4.2% / 8.7% - Aug Monthly 12 FINAME Fixed % - Jul Monthly 12 FINAME Fixed 14, % - Dec Monthly 12 FINAME Fixed % - Aug Monthly 12 FINAME Fixed 23, % - Jun Monthly 12 SGT FINAME Fixed 14, % - Dec Monthly 12 Brasnorte 1st Debentures CDI 108% CDI Jun Semiannual 2 ETAU EATE EBTE ECTE ENTE BNDES BoC BoC + 4% - Jan Monthly 12 TJLP 2, TJLP + 4% - Jan Monthly 12 1st Debentures CDI 5, % CDI - Dec Bullet 1 BNDES Selic 2, SELIC % - Aug Monthly 12 BNDES TJLP 2, TJLP % - Aug Monthly 12 FINAME Fixed 1, % - Jan Monthly 12 2nd Debentures CDI 29,966 1,852 CDI % Aaa.br Oct Semiannual 2 3rd Debentures CDI 82, CDI % - Mar Quarterly 4 4rd Debentures CDI 65,395 1, % CDI - Aug Quarterly 4 5th Debentures - 1st 5th Debentures - 2nd BNDES CDI 62, % CDI - Sep Monthly 12 CDI 26, % CDI - Sep Monthly 12 TJLP 68, TJLP % - May Monthly 12 Fixed 5, % - Nov Monthly 12 2nd Debentures CDI 7, CDI % Aa2.br Oct Semiannual 2 3rd Debentures CDI 12, CDI % - May Quarterly 4 1st Debentures CDI 0 0 CDI + 1.3% Aa1.br Mar Monthly 12 2nd Debentures CDI 102,014 1, % CDI - Aug Quarterly 4 3rd Debentures - 1st 3rd Debentures - 2nd CDI 13, % CDI - Sep Quarterly 4 CDI 5, % CDI - Sep Quarterly 4 ETEP 2nd Debentures CDI 28, % CDI - Aug Quarterly 4 ESDE ETSE TRANSLESTE TRANSIRAPÉ BNDES TJLP 8, TJLP % - Apr Monthly 12 Fixed 4, % - Sep Monthly 12 BNDES TJLP 7, TJLP % - Nov Monthly 12 BNDES Fixed 5, % - Nov Monthly 12 BDMG Fixed 1, % - Mar Monthly 12 BDMG Fixed %/ Libor/FX - Jan Semiannual 2 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 1, CDI % - Nov Semiannual 2 Mutuo CDI % + TJLP - Nov Bullet 1 BNDES Fixed % - Apr Monthly 12 TRANSUDESTE 1st Debentures CDI 1, CDI % - Nov Semiannual 2 Total 3,861, ,765 * 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. 19

20 20 Breakdown of the IFRS Revenues The Financial Asset Income is the outcome of return rate times the outstanding Financial Asset. Monetary Correction of Financial Asset is the monthly recognition of inflationary effect. In the Income Statement, the Financial Asset Income, Monetary Correction of Financial Asset and the Construction Revenue are booked in the Revenue line, as shown in the chart below. O&M Revenues is adjusted anually by inflation (IGP-M ou IPCA), in the same way as the RAP. The Variable Portion (PV) is the penalty due to unavailability of the assets (see further details on page 20). The PV and other adjustments started to be booked in the line Variable Portion and Other Revenues. R$ mn Concession Financial Asset Income FA - Monetary adjustment The Consolidated amount is the sum of each concession weighted by Taesa s stake. Construction O&M PV NVT (0.5) TSN (0.2) MUN GTE (0.0) PAT ETE ETA BRA NTE STE (0.1) ATE (0.0) ATE II (0.2) ATE III (0.0) SÃO GOTARDO EATE EBTE ECTE ENTE ERTE ETEP (0.0) Lumitrans STC ESDE ETSE MARIANA MIRACEMA Janaúba Total (1.2)

21 21 Financial Asset Financial Asset 4Q16 Financial Asset Income Mon. Cor. of Financial Asset O&M Revenue Const. Revenue RAP Financial Asset R$ mn Concession Financial Asset (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 Dec-20 ATE II 1, % Mar-35 Jan-22 ATE III¹ % Apr-36 Mar-23 ATE III¹ Reinforcement % Apr-36 No Sâo Gotardo¹ % Sep-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 Total 8, ,678.3 ¹ The RAPs must be grossed up of PIS/COFINS ² under construction ³ The Financial Asset RAP does not consider the basic transmission grid at the border ou basic frontier transmission grid

22 22 Income Statement R$ mn IFRS Regulatory (Non-IFRS) Income Statement 1Q16 Chg. Chg. % 1Q16 Chg. Chg. % GROSS OPERATING REVENUES Service revenues , ,441 33, % Operation and Maintenance 137, ,234 13, % Financial Asset Income 154, ,331 (9,490) -5.80% Financial Asset - Monetary adjustment 61, ,877 (96,237) -61.0% Construction and indemnity 15,420 (540) 15, % Variable Portion and Other Revenues 1,133 (730) 1, % 1,133 (730) 1, % TOTAL GROSS REVENUES 370, ,172 (74,706) -16.8% 481, ,711 35, % Revenue deductions (38,146) (40,199) 2, % (42,870) (39,442) (3,428) 8.70% NET REVENUES 332, ,973 (72,653) -17.9% 439, ,269 31, % COSTS AND OPERATING EXPENSES (65,543) (40,204) (25,339) 63.0% (91,203) (89,913) (1,290) 1.40% Personnel (30,457) (28,123) (2,334) 8.30% (30,457) (28,123) (2,334) 8.30% Material (20,747) 439 (21,186) % (276) (143) (133) 93.00% Third party services (9,023) (6,901) (2,122) 30.70% (9,023) (6,901) (2,122) 30.70% Depreciation and amortization (815) (1,145) % (46,946) (50,272) 3, % Other operating expenses (4,501) (4,474) (27) 0.60% (4,501) (4,474) (27) 0.60% Costs and Expenses (64,728) (39,059) (25,669) 65.7% (44,257) (39,641) (4,616) 11.60% GROSS PROFIT 266, ,769 (97,992) -26.9% 347, ,356 30, % Equity method 52,323 76,691 (24,368) -31.8% 56,846 41,859 14, % Revenues from financial investments 15,493 12,434 3, % 15,493 12,434 3, % Borrowings and financing 7,037 43,003 (35,966) -83.6% 7,037 43,003 (35,966) % Financial instrument (17,211) (74,427) 57, % (17,211) (74,427) 57, % Debentures (74,275) (115,930) 41, % (74,275) (115,930) 41, % Other financial expenses (1,940) 1,133 (3,073) % (1,940) 1,133 (3,073) % Financial Revenues (Expenses) (70,896) (133,787) 62, % (70,896) (133,787) 62, % NET INCOME BEFORE INCOME TAXES 248, ,673 (59,469) -19.3% 333, , , % Income taxes and social contribution (46,837) (53,988) 7, % (74,046) (38,380) (35,666) 92.90% NET INCOME BEFORE IOE 201, ,685 (52,318) -20.6% 259, ,048 72, % NET INCOME 201, ,685 (52,318) -20.6% 259, ,048 72, % EBITDA 267, ,914 (98,322) -26.9% 394, ,628 27, % EBITDA Margin 80.5% 90.4% -9.8 bps 89.9% 90.3% -0.3 bps

23 23 Income Statement IFRS R$ 000 IFRS TAESA ETAU Brasnorte TBE Aimorés Paraguaçu GROSS OPERATING REVENUES Service revenues Operation and Maintenance 137,432 1, , Financial Asset Income 154,841 1,048 1,508 38, Financial Asset - Monetary adjustment 61,640 1,090 1,117 29, Construction and indemnity 15, Variable Portion and Other Revenues 1, , TOTAL GROSS REVENUES 370,466 4,221 3,110 85, Revenue deductions (38,146) (370) (362) (8,460) (9) (12) NET REVENUES 332,320 3,851 2,748 76, COSTS AND OPERATING EXPENSES (65,543) (1,015) (620) (9,232) (84) (130) Personnel (30,457) (9) (261) (4,216) - - Material (20,747) (194) (169) (403) (83) (125) Third party services (9,023) (778) (135) (3,541) (1) (5) Depreciation and amortization (815) - - (286) - - Other operating expenses (4,501) (34) (55) (785) - - Costs and Expenses (64,728) (1,015) (620) (8,945) (84) (130) - - GROSS PROFIT 266,777 2,836 2,128 67,332 (1) (5) - - Equity method 52, NET FINANCIAL EXPENSES - - Revenues from financial investments 15, , Borrowings and financing 7,037 (247) - (1,865) - - Monetary variation and Exchange Gains / Losses (394) - - Financial instrument (17,211) Debentures (74,275) (177) - (15,292) - - Other financial expenses (1,940) (80) (8) (580) - - Financial Revenues (Expenses) (70,896) 197) 47 (15,781) NET INCOME BEFORE INCOME TAXES 248,204 2,639 2,175 52,265 (1) (5) Income taxes and social contribution (46,837) (895) (528) (3,328) NET INCOME 201,367 1,744 1,647 48,937 (1) (5) EBITDA 267,592 2,836 2,128 67,618 (1) (5) EBITDA Margin 80.5% 73.6% 77.4% 88.3% -1.2% -4.0% The difference between Taesa s equity method and the sum of the results from ETAU, Brasnorte and TBE is due to the amortization of the fair value allocated arising from the process of allocation of the price paid registered at the investment line.

24 24 Regulatory Income Statement (non-ifrs) R$ 000 Regulatory (Non-IFRS) TAESA ETAU Brasnorte TBE Aimorés Paraguaçu GROSS OPERATING REVENUES Service revenues 480,760 5,292 2, , Variable Portion and Other Revenues 1, , TOTAL GROSS REVENUES 481,893 5,825 2, , Revenue deductions (42,870) (444) (340) (9,787) NET REVENUES 439,023 5,381 2, , COSTS AND OPERATING EXPENSES (91,203) (1,381) (1,106) (18,763) (1) (5) Personnel (30,457) (9) (261) (4,216) - - Material (276) (2) (6) (168) - - Third party services (9,023) (778) (135) (3,541) (1) (5) Depreciation and amortization (46,946) (558) (649) (10,053) - - Other operating expenses (4,501) (34) (55) (785) - - Costs and Expenses (44,257) (823) (457) (8,710) (1) (5) - - GROSS PROFIT 347,820 4,000 1,179 93,216 (1) (5) - - Equity method 56, NET FINANCIAL EXPENSES - - Revenues from financial investments 15, , Borrowings and financing 7,037 (247) - (1,865) - - Variações monetárias e cambiais (394) - - Financial instrument (17,211) Debentures (74,275) (177) - (15,292) - - Other financial expenses (1,940) (80) (8) (573) - - Financial Revenues (Expenses) (70,896) (197) 47 (15,774) NET INCOME BEFORE INCOME TAXES 333,770 3,803 1,226 78,104 (1) (5) Income taxes and social contribution (74,046) (1,291) (205) (11,136) NET INCOME 259,724 2,512 1,021 66,968 (1) (5) EBITDA 394,766 4,558 1, ,269 (1) (5) EBITDA Margin 89.9% 84.7% 80.0% 92.2% 0% 0% The difference between Taesa s equity method and the sum of the results from ETAU, Brasnorte and TBE is due to the amortization of the fair value allocated arising from the process of allocation of the price paid registered at the investment line.

25 25 EBITDA Reconciliation EBITDA reconcialition exclude the impact of the equity method at the Company s result. R$ mn IFRS EBITDA Reconciliation 1Q16 Chg. Chg. % Net Income (52.3) -20.6% Income taxes and social (7.2) -13.2% contribution Net Financial Expenses (62.9) -47.0% Depreciation and amortization (0.3) -28.8% Equity method (52.3) (76.7) % EBITDA (98.3) -26.9% EBITDA Margin 80.5% 90.4% 0.0% -9.8 bps R$ mn Regulatory (Non-IFRS) EBITDA Reconciliation 1Q16 Chg. Chg. % Net Income % Income taxes and social % contribution Net Financial Expenses (62.9) -47.0% Depreciation and amortization (3.3) -6.6% Equity method (56.8) (41.9) (15.0) 35.8% EBITDA % EBITDA Margin 89.9% 90.3% 0.0% -0.3 bps

26 Balance Sheet R$ 000 IFRS Regulatory (Non-IFRS) Balance Sheet Adjustment Assets Cash and cash equivalent 217, ,222 Financial Investments 498, ,672 Receivables 177, ,691 Financial Asset 1,307,345 1,307,345 - Recoverable taxes 62,758-62,758 Dividends and interest on equity to receive 38,197-38,197 Other Current Assets 46,567-46,567 Total Current Assets 2,348,452 1,307,345 1,041,107 Financial Investments 3,884-3,884 Financial Asset 4,497,231 4,497,231 - Deferred income tax and social contribution 48 (529,911) 529,959 Investment 1,723, ,810 1,472,409 Receivables 13,722-13,722 Escrow deposits 19,335-19,335 Other receivables 21,640-21,640 Fixed Assets 21,015 (4,071,658) 4,092,673 Intangible Assets 25,330 (128,815) 154,145 Total Non Current Assets 6,325,424 17,657 6,307,767 Total Assets 8,673,876 1,325,002 7,348,874 Liabilities Trade accounts payable 18,116-18,116 Taxes 51,101-51,101 Borrowings and financing 9,159-9,159 Debentures 954, ,482 Dividends to pay 4-4 Regulatory fees 69,837-69,837 Other payables 23,908-23,908 Total Current Liabilities 1,126,607-1,126,607 Borrowings and financing 351, ,760 Debentures 2,037,057-2,037,057 Financial instruments derivatives 53,315 53,315 Deferred taxes and social contributions 177,238 (87,013) 264,251 Deferred Taxes 303, ,442 - Provisions for tax, social security, labor and civil contingencies 10,359-10,359 Obrigações Especiais (13,204) 13,204 Other payables 105, ,143 Total Non Current Liabilities 3,038, ,225 2,835,089 Shareholder's Equity Paid-in capital 3,042,035-3,042,035 Capital Reserve 594, ,507 Earnings reserve 496, ,328 Proposed additional dividends 174, ,718 Interim dividends and interest on equity ,117 Accumulated Losses - 1,258,251 (1,258,251) Retained earnings 201,367 (58,357) 259,724 Total Shareholder's Equity 4,508,955 1,121,777 3,387, Total Liabilities and Shareholder's Equity 8,673,876 1,325,002 7,348,874

27 27 TBE Balance Sheet R$ 000 IFRS Regulatory (Non-IFRS) Balance Sheet Adjustment Assets Cash and cash equivalent Receivables Financial Asset ( ) - Recoverable taxes Other Current Assets Total Current Assets ( ) Financial Investments Financial Asset ( ) - Investment (6.693) Other receivables (2.650) Fixed Assets Total Non Current Assets ( ) Total Assets ( ) Liabilities Trade accounts payable Taxes Borrowings and financing Debentures Dividends to pay Regulatory fees Other payables Total Current Liabilities Borrowings and financing Debentures Deferred Taxes ( ) Other payables Total Non Current Liabilities ( ) Shareholder's Equity Paid-in capital Legal Reserve Earnings reserve ( ) ( ) Retained earnings Total Shareholder's Equity ( ) Total Liabilities and Shareholder's Equity ( )

28 Cash Flow Cash Flow Cash Flow from operating activities Income for the period 201,367 Adjusts to: Income on equity in subsidiaries (52,323) Depreciation and amortization 815 Tax, social security, labor and civil provisions 807 Interest, monetary variation and exchange gains / losses and fair value adjustment on borrowings and financing (7,037) Interest and inflation adjustment on debentures 74,275 Derivative financial instruments 17,211 Income tax and social contribution 46,837 Deferred taxes (4,724) Return on financial assets (216,481) Construction and indemnity revenue (15,420) Variable Portion Provision (1,710) Construction cost ,994 Changes in assets and liabilities: Increase in trade accounts receivable (2,613) Decrease in financial assets 344,655 Increase in the balance of income tax and social contribution assets, less liabilities (2,924) Decrease in the balance of other assets (8,973) Decrease in balance of trade accounts payable (19,252) Increase in the balance of regulatory fees 2,769 Decrease in the balance of other payables (22,336) Dividends and interest on equity earned from jointly controlled 40,630 Cash from operating activities 375,950 Income tax and social contribution paid (8,007) Net cash from operating activities 367,943 Cash flow of investing activities Increase in the balance of Financial Investments (237,142) Additions in property, intangible assets (475) Net cash used in investing activities (237,617) Cash Flow provided by financing activities Borrowings - Payment of borrowings and financing (principal) (2,258) Payment of borrowings and financing (interest) (2,980) Payment of derivative financial instruments (interest) (9,371) Receiving and settlement of financial instruments - Net Cash provided by financing activities (14,609) 28 Opening balance of cash and cash equivalents 101,505 Closing The balance TBE balance of cash sheet and is cash unaudited. equivalents 217,222 Increase in cash and cash equivalents 115,717

29 29 Disclaimer The stand-alone and consolidated financial statements were prepared in accordance with the accounting principles adopted in Brazil, which include corporation law, the pronouncements, instructions and interpretations issued by the Accounting Pronouncements Comnittee (CPC) and the regulations of the Securities and Exchange Comnission of Brazil (CVM), combined with specific legislation issued by the National Electric Power Agency (ANEEL). As the industry regulator, ANEEL has powers to regulate the concessions. The forward-looking statements contained in this document relating to the business outlook, projections of operational and financial results and the growth prospects of Taesa are merely projections, and as such are based exclusively on management s expectations for the future of the business. These expectations depend materially on changes in market conditions and the performance of the Brazilian economy, the sector and international markets and therefore are subject to change without prior notice. EBITDA: EBITDA consists of net income before taxes, net financial expenses, and expenses with depreciation and amortization, and revenues. EBITDA is not recognized by generally accepted accounting principles in Brazil or by the IFRS, it does not represent a cash flow for the periods presented, it should not be considered as an alternative to net income, and it is not a performance indicator. The EBITDA presented is used by Taesa to measure its own performance. Taesa understands that some investors and financial analysts use EBITDA as an indicator of its operating performance. Net Debt: Net Debt is not recognized by generally accepted accounting principles in Brazil or by the IFRS, it does not represent a cash flow for the periods presented, and it is not a performance indicator. The Net Debt presented is used by Taesa to measure its own performance. Taesa understands that some investors and financial analysts use Net Debt as an indicator of its operating performance.