ITR - Quarterly Information Transmissora Aliança de Energia Elétrica S.A. - TAESA

Transcription

1 ITR - Quarterly Information Transmissora Aliança de Energia Elétrica S.A. - TAESA September 30, 2017

2 Contents Company information Breakdown of capital 1 Dividends in cash 2 Individual financial statements Balance sheet - Assets 3 Balance sheet - Liabilities 4 Statement of income 6 Statement of comprehensive income 8 Statement of cash flows 9 Statement of changes in shareholders equity DMPL - 01/01/ /30/ DMPL - 01/01/ /30/ Statement of added value 12 Consolidated financial statements Balance sheet - Assets 13 Balance sheet - Liabilities 14 Statement of income 15 Statement of comprehensive income 17 Statement of cash flows 18 Statement of changes in shareholders equity DMPL - 01/01/ /30/ DMPL - 01/01/ /30/ Statement of added value 21 Performance comment Opinions and Statements Special review report - Unqualified 96 Statement of the Directors on the Financial Statements 98 Statement of the Directors on the Independent auditors' report 99

3 Company information / Breakdown of capital Quantity of shares (Thousand) Current quarter 09/30/2017 Paid-in capital Common 590,714 Preferred 442,783 Total 1,033,497 Treasury Common 0 Preferred 0 Total 0 PAGE: 1 of 95

4 Company information / Dividends in cash Event Approval Dividend Start payment Nature of share Type of share Dividend per share - (Reais / Share) Board of Directors' Meeting 08/11/2017 Dividends 08/31/2017 Common Board of Directors' Meeting 08/11/2017 Dividends 08/31/2017 Preferred shares Board of Directors' Meeting 08/11/2017 Interest on own capital 08/31/2017 Common Board of Directors' Meeting 08/11/2017 Interest on own capital 08/31/2017 Preferred shares Board of Directors' Meeting 05/17/2017 Dividends 05/31/2017 Common Board of Directors' Meeting 05/17/2017 Dividends 05/31/2017 Preferred shares Board of Directors' Meeting 05/17/2017 Interest on own capital 05/31/2017 Common Board of Directors' Meeting 05/17/2017 Interest on own capital 05/31/2017 Preferred shares Annual shareholders meeting 04/28/2017 Dividends 05/12/2017 Common Annual shareholders meeting 04/28/2017 Dividends 05/12/2017 Preferred shares PAGE: 2 of 95

5 Individual financial statements / Balance sheet - Assets (In thousand of reais) Code of Account description Current quarter Prior year account 09/30/ /31/ Total assets 8,325,233 8,287, Current assets 2,305,270 1,791, Cash and cash equivalents 41, , Cash and banks 2, Interest earning bank deposits 39,197 99, Accounts receivable 153, , Trade accounts receivable 153, , Trade accounts receivable 153, , Recoverable taxes 62,445 51, Current taxes recoverable 62,445 51, Taxes and social contributions 62,445 51, Other current assets 2,047,614 1,475, Other 2,047,614 1,475, Securities 949, , Concession financial asset 1,035,680 1,208, Dividends and interest on own capital receivable 16,342 21, Other accounts receivable 41,320 34, Other assets 5,095 3, Non-current assets 6,019,963 6,495, Long term assets 3,613,657 4,051, Accounts receivable 12,843 13, Trade accounts receivable 12,843 13, Other non-current assets 3,600,814 4,038, Securities 4,067 3, Concession financial asset 3,560,355 3,999, Other accounts receivable 18,280 20, Judicial deposits 18,112 14, Investments 2,357,703 2,397, Ownership interest 2,357,703 2,397, Interest in associated companies 1,488,038 1,561, Interest in subsidiaries 706, , Interest in jointly-controlled subsidiaries 162, , Property, plant and equipment 21,783 21, Fixed assets in operation 21,783 21, Fixed assets in operation 21,783 21, Intangible assets 26,820 25, Intangible assets 26,820 25, Concession contract 26,820 25,166 PAGE: 3 of 95

6 Individual financial statements/ Balance sheet Liabilities (In thousand of reais) Code of account Account description Current quarter Prior year 09/30/ /31/ Total liabilities 8,325,233 8,287, Current liabilities 1,260,568 1,053, Suppliers 14,199 28, Domestic suppliers 14,199 28, Domestic suppliers 14,199 28, Tax obligations 97,208 20, Loans and financing 1,048, , Loans and financing 6,662 6, In domestic currency 6,629 6, In foreign currency Debentures 1,041, , Debentures 1,041, , Other liabilities 101,018 97, Other 101,018 97, Dividends and interest on own capital Regulatory rates 70,073 62, Other accounts payable 30,940 34, Non-current liabilities 2,809,114 2,926, Loans and financing 2,393,169 2,368, Loans and financing 337, , In domestic currency 29,816 34, In foreign currency 308, , Debentures 2,055,334 2,017, Debentures 2,055,334 2,017, Other liabilities 114, , Other 114, , Other accounts payable 66, , Derivative financial instruments 48,790 45, Deferred taxes 292, , Deferred income and social contribution taxes 292, , Deferred income and social contribution taxes 68, , Deferred PIS and COFINS 223, , Provisions 9,002 8, Tax, social security, labor and civil provisions 9,002 8, Tax provisions 1, Social security and labor provisions 1,939 1, Civil provisions 5,955 5, Shareholders' equity 4,255,551 4,307, Realized capital 3,042,035 3,042, Realized capital 3,042,035 3,042, Capital reserves 594, , Goodwill special reserve in the merger 594, , Profit reserves 496, , Legal reserve 296, , Tax incentive reserve 199, , Additional dividend proposed 0 174,718 PAGE: 4 of 95

7 Individual financial statements Balance sheet - Liabilities (In thousand of reais) Code of Account description Current quarter Prior year account 09/30/ /31/ Retained Earnings/Losses 122,681 0 PAGE: 5 of 95

8 Individual financial statements / Statement of income (R$ thous.) Code of account Account description Current quarter 07/01/ /30/2017 Accumulated of the current year 01/01/ /30/2017 Same quarter of the prior year 07/01/ /30/2016 Accumulated of the prior year 01/01/ /30/ Income from sales of goods and/or services 180, , ,429 1,005, Income from sales of goods and/or services 180, , ,429 1,005, Cost of goods and/or services sold -27,729-74,503-42,197-72, Personnel -10,493-30,359-13,451-30, Material -8,504-21,486-20,100-20, Outsourced services -7,323-17,547-6,931-16, Depreciation and amortization Other operating costs -1,238-4,575-1,544-3, Gross income 152, , , , Operating expenses/income -7,531 34,222 55, , General and administrative expenses -33,115-88,486-17,000-76, Personnel and management -20,079-56,166-11,554-51, Outsourced services -6,180-16,339-5,417-12, Depreciation and amortization , , Other general and administrative expenses -6,078-13, , Equity in net income of subsidiaries 25, ,708 72, , Equity in net income of subsidiaries 25, ,708 72, , Income (loss) before financial income and taxes 144, , ,830 1,098, Financial income (loss) -48, ,370-94, , Financial income 18,701 48,658 13,835 35, Financial expenses -67, , , , Income (loss) before income tax 96, , , , Income and social contribution taxes 1,039-32,343-34,609-88, Current -23, ,541-23, , Deferred assets 24,760 75,198-11,330 34, Net income from continued operations 97, , , , Income/loss for the period 97, , , , Earnings per share - (Reais / Share) PAGE: 6 of 95

9 Individual financial statements / Statement of income (R$ thous.) Code of account Account description Current quarter - 07/01/ /30/ Basic earnings per share Accumulated of the current year 01/01/ /30/2017 same quarter of the prior year - 07/01/ /30/2016 Accumulated of the prior year 01/01/ /30/ Common shares Preferred shares Diluted earnings per share Common shares Preferred shares PAGE: 7 of 95

10 Individual financial statements / Statement of comprehensive income (In thousand of reais) Code of account Account description Current quarter 07/01/ /30/2017 Accumulated of the current year 01/01/ /30/2017 Same quarter of the prior year 07/01/ /30/2016 Accumulated of the prior year 01/01/ /30/ Net income for the period 97, , , , Comprehensive income for the period 97, , , ,448 PAGE: 8 of 95

11 Individual financial statements / Statement of cash flows - Indirect method (In thousand of reais) Code of account Account description Accumulated of the current year 01/01/ /30/2017 Accumulated of the prior year 01/01/ /30/ Net cash from operating activities 1,205,070 1,236, Cash generated in operations 147, , Income (loss) for the period 370, , Equity in net income of subsidiaries -122, , Depreciation and amortization 2,573 2, Interest, inflation adjustments, exchange-rate changes and adjustment to fair value on loans and financing , Interest and inflation adjustments on debentures 192, , Income and social contribution taxes 32,343 88, Tax, social security, labor and civil provisions 825 6, Deferred taxes -27,907-6, Remuneration of financial assets -406, , Inflation adjustment of financial asset 80, , Income from construction and indemnity -4,651-13, Derivative financial instruments 26, , Provision (reversal) for variable portion 3,529-2, Changes in assets and liabilities 1,057,395 1,105, Decrease in accounts receivable from concessionaires and permissionaires and concession financial assets (Increase) in the balance of income and social contribution tax assets, net of liabilities 950, ,995-12,601-31, Income and social contribution taxes paid -29,607-21, (Increase) in the balance of other assets -9,592-10, (Decrease) in balance of suppliers -14,200-16, Increase in balance of regulatory rates 7,246 8, (Decrease) in balance of other accounts payable -46,462-15, Dividends received from subsidiaries 56,057 77, Dividends and JCP (Interest on own capital) received from jointly-controlled subsidiaries and associated companies 155, , Net cash used in investment activities -790, , (Increase) in balance of securities -742, , Additions/Write-offs in property, plant and equipment and -4,491-1,063 intangible assets Capita increase and advance for future capital increase in -43,196-3,500 subsidiaries Funds earmarked for capital increase 0-1, Net cash from financing activities -473, , Payment of loans and financing - Principal -4, , Payment of loans and financing - Interest -9,372-10, Payment of debentures - Interest -13,026-29, Payment of dividends and interest on own capital -422, , Payment of derivative financial instruments - interest -23,045-32, Receipt upon settlement of derivative financial instruments - principal 0 219, Increase (decrease) in cash and cash equivalents -58, , Opening balance of cash and cash equivalents 100,299 76, Closing balance of cash and cash equivalents 41, ,948 PAGE: 9 of 95

12 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /30/2017 (In thousand of reais) Code of account Account description Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity 5.01 Opening balances 3,042, , , ,307, Adjusted opening balances 3,042, , , ,307, Capital transactions with partners , , , Interest on own capital , , Additional dividends approved , , Interim dividends , , Total comprehensive income , , Net income for the period , , Closing balances 3,042, , , , ,255,551 PAGE: 10 of 95

13 Individual financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /30/2016 (In thousand of reais) Code of account Account description Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity 5.01 Opening balances 3,042, , , ,377, Adjusted opening balances 3,042, , , ,377, Capital transactions with partners , , , Interest on own capital , , Additional dividends approved , , Interim dividends , , Total comprehensive income , , Net income for the period , , Closing balances 3,042, , , , ,312,764 PAGE: 11 of 95

14 Individual financial statements or Statement of added value (R$ thous.) Code of account Account description Accumulated of the current year Accumulated of the prior year 01/01/ /30/ /01/ /30/ Income 706,489 1,111, Other income 706,489 1,111, Inputs acquired from third parties -71,933-62, Materials, Energy, Third-party services and other -55,372-49, Other -16,561-13, Gross added value 634,556 1,049, Retentions -2,573-2, Depreciation, amortization and depletion -2,573-2, Net added value produced 631,983 1,046, Added value received as transfer 171, , Equity in net income of subsidiaries 122, , Financial income 48,658 35, Total added value payable 803,349 1,323, Distribution of added value 803,349 1,323, Personnel 73,409 70, Direct remuneration 47,036 44, Benefits 21,784 21, Severance Pay Fund (FGTS) 4,589 4, Taxes, rates and contributions 134, , Federal 133, , State Municipal Third-party capital remuneration 225, , Interest 192, , Other 32, , Derivative financial instruments 26, , Other 5,782 2, Remuneration of own capital 370, , Interest on own capital 147, Dividends 100, Retained earnings / Loss for the period 122, ,448 PAGE: 12 of 95

15 Consolidated financial statements or Balance sheet Assets (In thousand of reais) Code of account Account description Current quarter Prior year 09/30/ /31/ Total assets 8,449,292 8,410, Current assets 2,487,654 1,954, Cash and cash equivalents 41, , Cash and banks 2, Interest earning bank deposits 39, , Accounts receivable 165, , Trade accounts receivable 165, , Accounts receivable from concessionaires and permissionaires 165, , Recoverable taxes 73,048 64, Current taxes recoverable 73,048 64, Taxes and social contributions 73,048 64, Other current assets 2,207,558 1,616, Other 2,207,558 1,616, Securities 1,017, , Concession financial asset 1,123,230 1,294, Dividends and interest on own capital receivable 14,207 19, Other accounts receivable 47,222 36, Other assets 5,204 3, Non-current assets 5,961,638 6,455, Long term assets 4,262,324 4,679, Accounts receivable 13,660 14, Trade accounts receivable 13,660 14, Other non-current assets 4,248,664 4,665, Securities 4,067 3, Concession financial asset 4,202,280 4,623, Deferred taxes and social contributions Other accounts receivable 18,548 20, Judicial deposits 23,631 17, Taxes and social contributions Investments 1,650,711 1,729, Ownership interest 1,650,711 1,729, Property, plant and equipment 21,783 21, Fixed assets in operation 21,783 21, Intangible assets 26,820 25, Intangible assets 26,820 25, Concession contract 26,820 25,166 PAGE: 13 of 95

16 Consolidated financial statements or Balance sheet Liabilities (In thousand of reais) Code of account Account description Current quarter Prior year 09/30/ /31/ Total liabilities 8,449,292 8,410, Current liabilities 1,279,112 1,074, Suppliers 17,923 36, Domestic suppliers 17,923 36, Domestic suppliers 17,923 36, Tax obligations 102,257 25, Loans and financing 1,050, , Loans and financing 9,121 9, In domestic currency 9,088 9, In foreign currency Debentures 1,041, , Other liabilities 108, , Other 108, , Dividends and interest on own capital Regulatory rates 74,863 67, Other accounts payable 33,462 35, Non-current liabilities 2,914,629 3,028, Loans and financing 2,403,566 2,381, Loans and financing 348, , In domestic currency 40,213 46, In foreign currency 308, , Debentures 2,055,334 2,017, Other liabilities 118, , Other 118, , Other accounts payable 69, , Derivative financial instruments 48,790 45, Deferred taxes 378, , Deferred income and social contribution taxes 378, , Deferred income and social contribution taxes 98, , Deferred PIS and COFINS 279, , Provisions 14,237 9, Tax, social security, labor and civil provisions 14,237 9, Tax provisions 1, Social security and labor provisions 2,151 1, Civil provisions 10,978 6, Consolidated shareholders' equity 4,255,551 4,307, Realized capital 3,042,035 3,042, Capital reserves 594, , Profit reserves 496, , Legal reserve 296, , Tax incentive reserve 199, , Additional dividend proposed 0 174, Retained Earnings/Losses 122,681 0 PAGE: 14 of 95

17 Consolidated financial statements / Statement of income (In thousand of reais) Code of account Account description Current quarter 07/01/ /30/2017 Accumulated of the current year 01/01/ /30/2017 Same quarter of the prior year 07/01/ /30/2016 Accumulated of the prior year 01/01/ /30/ Income from sales of goods and/or services 214, , ,611 1,092, Income from sales of goods and/or services 214, , ,611 1,092, Cost of goods and/or services sold -47, ,913-49,831-85, Personnel -11,102-32,058-13,999-32, Material -26,530-54,009-26,429-30, Outsourced services -7,968-19,192-7,605-17, Depreciation and amortization Other operating costs -1,466-5,118-1,627-4, Gross income 167, , ,780 1,007, Operating expenses/income -19,249-20,480 36, , General and administrative expenses -33,984-91,280-17,590-77, Personnel and management -20,552-57,729-11,931-52, Outsourced services -6,305-16,979-5,522-12, Depreciation and amortization , , Other general and administrative expenses -6,349-14, , Equity in net income of subsidiaries 14,735 70,800 54, , Equity in net income of subsidiaries 14,735 70,800 54, , Income (loss) before financial income and taxes 148, , ,317 1,112, Financial income (loss) -47, ,342-92, , Financial income 20,216 54,304 15,809 41, Financial expenses -67, , , , Income (loss) before income tax 101, , , , Income and social contribution taxes -3,704-43,029-40, , Current -25, ,937-24, , Deferred assets 21,425 69,908-16,331 18, Net income from continued operations 97, , , , Consolidated income/loss for the period 97, , , , Attributed to the Parent company's partners 97, , , ,448 PAGE: 15 of 95

18 Consolidated financial statements / Statement of income (In thousand of reais) Code of account Account description 3.99 Earnings per share - (Reais / Share) Current quarter 07/01/ /30/2017 Accumulated of the current year 01/01/ /30/2017 Same quarter of the prior year 07/01/ /30/2016 Accumulated of the prior year 01/01/ /30/ Basic earnings per share Common shares Preferred shares Diluted earnings per share Common shares Preferred shares PAGE: 16 of 95

19 Consolidated financial statements or Statement of comprehensive income (In thousand of reais) Code of account Account description Current quarter 07/01/ /30/2017 Accumulated of the current year 01/01/ /30/2017 Same quarter of the prior year 07/01/ /30/2016 Accumulated of the prior year 01/01/ /30/ Consolidated net income for the period 97, , , , Consolidated comprehensive income for the period 97, , , , Attributed to the Parent company's partners 97, , , ,892 PAGE: 17 of 95

20 Consolidated financial statements / Statement of cash flows - Indirect method (R$ thous.) Code of account Account description Accumulated of the current year 01/01/ /30/2017 Accumulated of the prior year 01/01/ /30/ Net cash from operating activities 1,176,454 1,218, Cash generated in operations 134, , Income (loss) for the period 370, , Equity in net income of subsidiaries -70, , Depreciation and amortization 2,573 2, Tax, social security, labor and civil provisions 4,685 7, Interest, inflation adjustments, exchange-rate changes and adjustment to fair value on loans and financing , Interest and inflation adjustments on debentures 192, , Income and social contribution taxes 112, , Deferred taxes -28,772-5, Remuneration of financial assets -442, , Inflation adjustment of financial asset 69, , Income from construction and indemnity -35,139-22, Provision for variable portion 991 5, Derivative financial instruments 26, , Construction cost Deferred income and social contribution taxes -69,908-18, Changes in assets and liabilities 1,042,220 1,080, Decrease in accounts receivable from concessionaires and permissionaires and concession financial assets Dividends and JCP (Interest on own capital) received from jointly-controlled subsidiaries and associated companies (Increase) in the balance of income and social contribution tax assets, net of liability 1,007, , , ,852-10,017-26, Income and social contribution taxes paid -34,734-23, (Increase) in the balance of other assets -16,036-11, (Decrease) in balance of suppliers -19,692-17, Increase in balance of regulatory rates 7,795 8, (Decrease) in balance of other accounts payable -48,115-17, Net cash used in investment activities -760, , (Increase) in balance of securities -756, , Additions/Write-offs in property, plant and equipment and -4,494-1,063 intangible assets 6.03 Net cash from financing activities -475, , Payment of loans and financing - Principal -6, , Payment of loans and financing - Interest -9,633-10, Payment of debentures - Interest -13,026-29, Payment of dividends and interest on own capital -422, , Payment of derivative financial instruments - interest -23,045-32, Funding of new loans 0 219, Increase (decrease) in cash and cash equivalents -59,629 95, Opening balance of cash and cash equivalents 101, , Closing balance of cash and cash equivalents 41, ,874 PAGE: 18 of 95

21 Consolidated financial statements / Statement of changes in shareholders equity / DMPL - 01/01/ /30/2017 (In thousand of reais) Code of account Account description Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity Interest of noncontrolling shareholders Consolidated shareholders' equity 5.01 Opening balances 3,042, , , ,307, ,307, Adjusted opening balances 3,042, , , ,307, ,307, Capital transactions with partners , , , , Interest on own capital , , , Additional dividends approved , , , Interim dividends , , , Total comprehensive income , , , Net income for the period , , , Closing balances 3,042, , , , ,255, ,255,551 PAGE: 19 of 95

22 Consolidated financial statements / Statement of changes in shareholders equity / DMPL 01/01/ /30/2016 (In thousand of reais) Code of account Account description Paid-up capital Capital reserves, Options granted and Treasury shares Profit reserves Retained earnings (loss) Other comprehensive income Shareholders' equity Interest of noncontrolling shareholders Consolidated shareholders' equity 5.01 Opening balances 3,042, , , ,377, ,377, Adjusted opening balances 3,042, , , ,377, ,377, Capital transactions with partners , , , , Interest on own capital , , , Additional dividends approved , , , Interim dividends , , , Total comprehensive income , , , Net income for the period , , , Closing balances 3,042, , , , ,312, ,312,764 PAGE: 20 of 95

23 Consolidated financial statements or Statement of added value (In thousand of reais) Code of account Account description Accumulated of the current year Accumulated of the prior year 01/01/ /30/ /01/ /30/ Income 814,437 1,211, Other income 814,437 1,211, Inputs acquired from third parties -107,732-75, Materials, Energy, Third-party services and other -90,181-61, Other -17,551-14, Gross added value 706,705 1,135, Retentions -2,573-2, Depreciation, amortization and depletion -2,573-2, Net added value produced 704,132 1,133, Added value received as transfer 125, , Equity in net income of subsidiaries 70, , Financial income 54,304 41, Total added value payable 829,236 1,358, Distribution of added value 829,236 1,358, Personnel 76,192 71, Direct remuneration 48,547 45, Benefits 22,936 21, Severance Pay Fund (FGTS) 4,709 4, Taxes, rates and contributions 156, , Federal 155, , State Municipal Third-party capital remuneration 225, , Interest 193, , Other 32, , Derivative financial instruments 26, , Other 6,141 2, Remuneration of own capital 370, , Interest on own capital 147, Dividends 100, Retained earnings / Loss for the period 122, ,448 PAGE: 21 of 95

24 Performance comment PERFORMANCE COMMENT ON SEPTEMBER 30, 2017 Main events up to September 30, 2017 and subsequent events Signing of the concession contracts of ANEEL Auction 13/2015 (Phase 2) - On February 10, 2017, concession contracts 17/2017 (Janaúba), 04/2017 (Aimorés), 03/2017 (Paraguaçú), and 19/2017 (ESTE) were signed, with a term of 30 years. Election of Chief Executive Officer and Business Development Officer: On April 7, 2017, Mr. Marco Antônio Resende Faria, Chief Technical Officer, was elected to temporarily occupy the positions of Chief Executive Officer and Business Development Officer simultaneously. Aneel Auction no. 005/ Consórcio Columbia (Taesa - 50% and CTEEP - Companhia de Transmissão de Energia Elétrica Paulista - 50%), obtained the main batch of transmission auction 005/2016, held by ANEEL on April 24, Lot 1, located in the state of Paraná, comprised of 600 km of transmission lines as well as substations. The consortium presented a bid of R$ million, representing a negative goodwill of 33.24% in relation to the Annual Permitted Income, or RAP (Receita Anual Permitida). Ratification of the allocation of Taesa s P/L for Annual and Special Shareholders' Meeting held on April 28, 2017 approved the proposal for allocation of income for the year of Payment of dividends - On May 12, 2017, the Company paid additional dividends related to the year 2016 in the amount of R$ 174,718 ( per common and preferred shares). Signing of ERB1 s concession agreement - on May 17, 2017 the Company set up the Special Purpose Company named ERB1 - Elétricas Reunidas do Brasil S.A. On August 11, 2017 the concession agreement between ANEEL and ERB1 was signed, granting the right to exploit the joint venture for 30 years. Payment of interim dividends and interest on own capital - On May 31, 2017, the company paid interim dividends and interest on own capital for the year 2017 in the amount of R$ 100,041 ( per common and preferred share) and R$ 78,117 ( per common and preferred share), respectively. Disposal of Shares of Transmissora Aliança de Energia S.A. (Taesa), owned by FIP Coliseu and FIA Taurus, to ISA Investimentos e Participações do Brasil S.A. - In June 2017, the Company concluded the disposal of shares issued by Taesa, owned by Fundo de Investimentos em Participações Coliseu and Fundo de Investimentos em Ações Taurus, to ISA. The shares were fully transferred to ISA. Election of the new Chief Legal and Regulatory Officer - The Board of Directors' Meeting held on June 22, 2017 dismissed Mr. Luciano de Araujo Ferraz from the position of Chief Legal and Regulatory Officer of the Company, and elected Mr. Raul Lycurgo Leite to occupy said position, also as of July 1, PAGE: 22 of 95

25 Performance comment Interruption of the period of analysis of the request for registration of the public offering - Following the material event disclosed by the Company on May 30, 2017, it approved before ANBIMA, on July 12, 2017, the interruption of the period of analysis of the request for registration of the public offering for distribution of the 4 th Issuance of unsecured and unconvertible debentures, in two (2) series, of the Company ( Offer ) for up to 60 working days, due to the current situation of the Brazilian capital market. Corporate restructuring of Transmeiras - The Board of Directors, as of July 12, 2017, and Annual Shareholders Meeting, on August 2, 2017, approved the corporate restructuring involving the transfer to Taesa of the shareholdings held in the capital of the following electricity transmission public service concessionaires: Companhia Transleste de Transmissão S.A, Companhia Transudeste de Transmissão S.A. e Companhia Transirapé de Transmissão S.A. (all, jointly, denominated Transmineiras ), currently held by Companhia Energética de Minas Gerais - CEMIG ( Cemig ). The Transaction was also approved by the Administrative Council for Economic Defense (CADE), within the term and form provided for by the respective regulative legislation, and its conclusion is subject to the obtaining of the remaining proper prior approvals, including the approval of creditors and lenders. ANEEL expressed the opinion that there was no need of approval, since there will be no change in the control of Transmineiras. Recomposition of the Fiscal Council - The Special Shareholders Meeting held on July 26, 2017 decided to recompose the Company s Tax Council, with a mandate until the Company's Annual Shareholders Meeting to be held in Please enter the name of audit committee members. Tax Council Holders Alternate members Marília Carvalho de Melo (CEMIG) Francisco Luiz Moreira Penna (CEMIG) Ademir Lucas Gomes (CEMIG) Eduardo José de Souza (CEMIG) Manuel Domingues de Jesus e Pinho (ISA) João Henrique de Souza Brum (ISA) Susana Furquim Xavier Couto (ISA) Manoel Carlos Visentin Coronado (ISA) Alexandre Pedercini Issa (Minority shareholders) Ronald Gastão Andrade Reis (Minority shareholders) Payment of interim dividends and interest on capital (JCP) - on August 11, 2017 the Company s Board of Directors approved the distribution of R$ 69,887 as payment to shareholders, of which: R$ 675 as interim dividends, and R$ 69,211 as interest on own capital (JCP). Resumption of request of previous analysis for registry of the public offering - on August 15, 2017 the Company informed its shareholders and the market in general that on this date the request of previous analysis for registry of the public offer of distribution of the 4th Issuance of debentures not convertible into shares was resumed with the Brazilian Association of Entities of the Financial and Capital Markets. Recomposition of the Audit Committee - On July 12, 2017, the Board of Directors decided to recompose the Company's Audit Committee, Non-Statutory, with a mandate until the next Company's Special Shareholders Meeting to be held in 2018: PAGE: 23 of 95

26 Performance comment Paulo de Moura Ramos Jorge Raimundo Nahas João Paulo Dionísio Campos Onofre Perez Filho Audit Committee Cesar Augusto Ramirez Rojas Andrés Baracaldo Sarmiento Gustavo Carlos Marin Garat Hermes Jorge Chipp On August 22, 2017, the Board of Directors deliberated a new recomposition of the Audit Committee, with the same mandate: Paulo de Moura Ramos Jorge Raimundo Nahas João Paulo Dionísio Campos Onofre Perez Filho Audit Committee Cesar Augusto Ramirez Rojas Andrés Baracaldo Sarmiento Robert Patrick Panero Fernando Augusto Rojas Pinto Public offering of simple debentures of the 4th Issuance - on August 29, 2017 the Company makes public the offer of distribution of simple debentures, not convertible into shares, totaling R$ 435,000. The issuance occurred on September 15, 2017 and the funds were transferred to the Company on October 09, 2017, in the amount of R$542,700, of which R$287,700 refers to the Institutional Series and R$255,000 refers to the Incentive Series. Payment of interim dividends and interest on own capital - On August 31, 2017, the company paid interim dividends and interest on own capital for the year 2017 in the amount of R$ 675 ( per common and preferred share) and R$ 69,212 ( per common and preferred share), respectively. Transfer of Brasnorte s control - the transfer of Brasnorte s control from Eletronorte to Eletrobrás was granted through ANEEL Order No /2017, published in DOU (Federal Official Gazette) on October 03, To conclude the operation, it is necessary approval by the controlling agencies and lenders. Investor with relevant interest - Based on article 12 of CVM Instruction 358/02, as amended, Taesa hereby informs its shareholders, the market in general and other interested parties that on November 01, 2017, it received mail sent by GIC Private Limited ("GIC"), informing that, on October 30, 2017, it began to hold 22,526,736 (twenty-two million, five hundred twenty-six thousand, seven hundred and thirty-six) preferred shares of the Company, representing 5.088% of total preferred shares. According to the mail received, GIC declares that: a) it also holds 11,263,368 (eleven million, two-hundred sixty-three thousand, three hundred and sixty-eight) common shares of Taesa, representing 1.907% of total common shares; b) its interest in the shares of the Company is limited exclusively to maintain a diversified portfolio and, therefore, it does not aim any change of ownership control or administrative structure of the Company; and c) it did not enter into any agreement or contract to rule the exercise of the voting rights or the purchase or sale of the Company s marketable securities. PAGE: 24 of 95

27 Performance comment ECONOMIC AND FINANCIAL PERFORMANCE CONSLIDATED IN THIRD QUARTER OF Income (loss) for the period Taesa achieved a consolidated income (loss) of R$ 97,325 in 3Q17, 55% lower than 3Q16. Changes in net income - 3Q17 vs. 3Q16 217,556-55% (112,611) (6,534) (478) (671) 123 (60) 97,325 Consolidated 3Q16 Taesa ATE III SGT MAR MIR JAN Consolidated 3Q Net operating income (ROL) ROL is comprised of gross income and deductions from gross income. 3Q17 3Q16 Var. Var.% ROL 214, ,611 (149,712) -41.1% Gross operating income (ROB) ROB is comprised of income from the remuneration of concession financial assets, inflation adjustment of financial asset, operating and maintenance (O&M) income, construction and indemnity income, and other income. 3Q17 3Q16 Var. Var.% Remuneration of concession financial 137, ,914 (23,976) -14.8% asset Inflation adjustment of concession (43,794) 86,639 (130,433) % financial asset Operation and maintenance 139, ,485 2, % Income from construction 16,166 19,824 (3,658) -18.5% Variable portion (1,733) (1,869) % PAGE: 25 of 95

28 Performance comment Other income (4,093) 1,438 (5,531) % 244, ,431 (161,157) -39.7% Definitions: Remuneration of concession financial asset - earned taking into consideration the rate of return of each investment defined at the beginning of each concession. The remunerations on the infrastructure and the compensation that is expected to receive from the Concession Grantor at the end of the concession are treated in this group. Inflation adjustment of concession financial asset - recognized monthly based on the IGP-M or IPCA indexes of the month prior to the accrual month. Operation and maintenance (O&M) - is the amount that the Company remunerates for the cost of operation and maintenance of the transmission lines. It is restated at inflation (IGP-M or IPCA), according to the Ratifying Resolution for restating the Annual Permitted Income ( RAP ). Construction income - is the amount invested in the construction of an asset plus the margin of construction on this investment. Variable portion - discounts in RAP due to unavailability of the transmission line. Other income - income from back-office contracts, facilities sharing (CCI), receipt of quotas that are transferred to CDE and PROINFA. ROB change - 3Q17 x 3Q16 405,431 (23,976) (130,433) 2,305 (3,658) 136 (5,531) 244,274 ROB 3Q16 Remuneration of concession financial asset Inflation adjustment of concession financial asset Operation and maintenance Income from construction Variable portion (PV) Other operating income ROB 3Q17 PAGE: 26 of 95

29 Performance comment Changes basically refer to: Remuneration of the Concession financial assets - to amortizations of the financial assets and to 50% reduction of RAP of TSN and NVT concessions as provided for in the concession agreements entered into with ANEEL between years 1999 and Inflation adjustment of concession financial asset - Monthly recognition of inflation effects on concession financial assets was lower in 3Q17 than in 3Q16, due to the decreases in the IGP- M price index (-1.28% vs. 2.02%) and the IPCA price index (0.20% vs. 1.32%). Operation and maintenance - annual restatement at inflation (IGP-M: 1.57% and IPCA: 3.60%), according to Ratifying Resolution of June 27, 2017, which established the annual permitted income (RAP), adjusted for the 2017/2018 Cycle, in the period between July 1, 2017 and June 30, Income from Construction - to investments in the construction of transmission lines and substations in Mariana and Miracema concessions in 3Q17, and to investments in Mariana and reinforcements in TSN, Novatrans, Patesa, ETEO and NTE in 3Q16. Additionally, in 3Q16 there was the recording of indemnity costs related to right of way, which significantly increased the income from construction in the period. Variable portion (PV) - to the reversal of provisions in 3Q17, which were recognized in prior years. Other income - Pursuant to technical note 196/2016 in connection with the tariff review of the reinforcements authorized, ANEEEL proposed that the differences obtained in the revenues reviewed compared to the revenues homologated, should have been considered in the portion of adjustment (PA) for a period of 2 years as of July The recording of the PA adversely affected the Company s result for 2016 and 2017, and in 2016, the recording occurred in 4Q and in 2017 in 3Q Deductions from gross operating income (ROB) The deductions on ROB are composed of PIS, COFINS and quotas for RGR, R&D, TFSEE and PROINFA. 3Q17 3Q16 Var. Var.% Current PIS and COFINS (20,333) (22,592) 2, % Deferred PIS and COFINS 10,829 2,782 8, % ISS (37) (24) (13) 54.2% Sectorial charges - RGR (13,095) (13,234) % - R&D (4,169) (4,362) % - TFSEE (1,570) (1,745) % - CDE and PROINFA (1,000) (1,645) % (19,834) (20,986) 1, % (29,375) (40,820) 11, % PAGE: 27 of 95

30 Performance comment Definitions: Current PIS and COFINS - contributions calculated on the Company's income prior to the adoption of ICPC01 (R1) technical interpretation. Deferred PIS and COFINS - calculated contributions on the effects of ICPC01 (R1) technical interpretation ICPC01 (R1) on the Company's income. ISS - tax calculated based on income from back-office services and Facilities Sharing (CCI). Sectorial charges - defined by ANEEL and established by law, calculated based on income, for the formation of a Overall Reversal Reserve for Public Electric Energy Services (RGR), Inspection Fee (TFSEE), Energy Development Account (CDE), Alternative Electricity Sources Incentive Program (PROINFA), and amounts earmarked for R&D, calculated based on regulatory net operating income. Changes basically refer to: Current PIS and COFINS - to the reduction of the Regulatory Income (RAP) in 3Q17, due to negative impact of the portion of adjustment and apportionment of advance. Deferred PIS and COFINS - decrease in gross operating income (ROB) due to lower inflation adjustment of the concession financial assets in the period. ISS - income from provision of back-office service for the subsidiary Miracema as of 4Q16. Sectorial Charges - decrease in Overall Reversal Reserve (RGR) rates, as established by ANEEL, decrease in R&D due to the decrease in inflation adjustment of regulatory income and reduction of quotas transferred to CDE and PROINFA in 3Q Operating costs and expenses Personnel Material Construction and reinforcements Improvements Other materials Outsourced services Other 3Q17 3Q16 Var. Var.% (31,654) (26,530) (15,840) (9,981) (709) (14,273) (7,816) (25,930) (26,429) (18,464) (7,239) (726) (13,127) (1,229) (5,724) (101) 2,624 (2,742) 17 (1,146) (6,587) 22.1% 0.4% -14.2% 37.9% -2.3% 8.7% 536.0% Subtotal (80,273) (66,715) (13,558) 20.3% Depreciation and amortization (949) (706) (243) 34.4% Costs and expenses (81,222) (67,421) (13,801) 20.5% PAGE: 28 of 95

31 Performance comment Changes basically refer to: Personnel - to the salary adjustment and employees benefits, and directors fees based on annual collective bargaining, the dismissal of three officers, and the increase of the staff for the construction of the new transmission lines Janaúba and Miracema. Construction and reinforcements, improvements and other materials - Construction: to investments in the transmission lines and substations in Mariana and Miracema concessions in 3Q17, and to investments in Mariana and in reinforcements in TSN, Novatrans, Patesa, ETEO and NTE in 3Q16. Additionally, in 3Q16 there was the recording of indemnity costs related to right of way, which significantly increased the income from construction in the period. Improvements: higher investments in improvements in 3Q17 in Novatrans and ATEIII concessions. Outsourced services - to the increase of surveillance and cleaning services, travel expenses, legal and accounting advisory contracted for issuance of debentures and business valuations. Other - to the higher investment in 3Q17 in donations and sponsorship and reversals of provisions for right of way in 3Q Equity in net income of subsidiaries 3Q17 3Q16 Var. Var.% ETAU 658 2,147 (1,489) -69.4% BRASNORTE 1,068 2,215 (1,147) -51.8% AIMORÉS (248) - (248) 100.0% PARAGUAÇU (273) - (273) 100.0% ERB1 (238) - (238) 100.0% TBE Group 13,768 49,765 (35,997) -72.3% Total 14,735 54,127 (39,392) -72.8% Changes refer basically to decreases in the IGP-M and IPCA price indexes in 3Q17 compared to 3Q16, which impacted on the monthly recognition of the effects of inflation on the concession financial assets of jointly-controlled subsidiaries and associated companies Financial income (loss) 3Q17 3Q16 Var. Var.% Yields of interest earning bank deposits 20,216 15,809 4, % Financial income 20,216 15,809 4, % Interest accrual (59,243) (83,661) 24, % Inflation adjustments and exchange-rate changes (8,212) (24,576) 16, % Fair value adjustment 2,109 1, % (65,346) (106,491) 41, % PAGE: 29 of 95

32 Performance comment Other financial income (expenses), net (2,254) (2,279) % Financial expenses (67,600) (108,770) 41, % Net financial income (loss) 47,384 (92,961) 45, % Changes basically refer to: Yields of interest earning bank deposits - to the higher accumulation of cash in 3Q17 due to the lower volume of payment of loans and debts in the year. Interest incurred - to the effects of amortizations made on semi-annual basis, which reduced the debt balance of debentures and interest incurred. In addition, there was reduction of the macroeconomic indexes IPCA and CDI in 3Q17 compared to 3Q16. Inflation adjustments and exchange-rate changes - to decrease the indexing unit of the debt (Libor) in 3Q17 compared to 3Q16. Adjustment to fair value - change in the Citibank loan mark-to-market. Other financial expenses - the funds destined to R&D in 3Q17 were lower when compared to 3Q16, due to the decrease of the Regulatory Income in the period Income and social contribution taxes on income Current IRPJ and CSLL Deferred income and social contribution taxes 3Q17 3Q16 Var. Var.% (25,129) 21,425 (24,469) (16,331) (660) 2.7 % % (3,704) (40,800) 37, % Current IRPJ and CSLL - affected by the changes in income from remuneration of financial assets, which were lower than in 3Q, compared to 3Q16. Deferred IRPJ and CSLL - directly affected by the change in income from remuneration of financial assets, due to the taxation regime, the Company defers the income for the period and pays tax in proportion to the effective receiving, thus the change in deferred taxes is inversely proportional to the income from remuneration of financial assets for the periods, that is, in 3Q17 we had reduction of corporate gross income and, therefore, a lower deferred tax expense. 2. Relations with Independent Auditors In fulfillment of CVM Instruction 381/2003, we hereby announce that Ernst & Young Auditores Independentes S.S. ( EY Brasil ) provides independent auditing services of the financial statements to the Company, its subsidiaries and jointly-controlled subsidiaries since March 2017 until December 31, 2017, for the amount of R$ 1,314. Additionally, at the request of a funding entity, "EY Brasil" was contracted for issuance of the Financial Statements as of December 31, 2016, of the subsidiary Janaúba Transmissora de Energia Elétrica S.A., for the amount of R$12. PAGE: 30 of 95