earnings release - 2q15

2Q15 Earnings Release

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ENEVA Announces Second Quarter 2015 Results

The sale of Pecm I and the implementation of the first steps of the approved Judicial Recovery Plan are the

main highlights of the quarter

1H15 Adjusted EBITDA totaled R$127.9 million

Rio de Janeiro, August 13, 2015 - ENEVA S.A. (BM&FBOVESPA: ENEV3, GDR I: ENEVY) announces today its results for the second quarter

ended June 30, 2015 (2Q15). The information below is presented on a consolidated basis in accordance with the accounting practices adopted in

Brazil, except where stated otherwise.

2Q15 Highlights The deconsolidation of Pecm II impacted all figures in the balance sheet and income statement as of June 1, 2014. For a

better understanding and comparison, all comments below are based on the results of 2Q15 and 2Q14 pro-forma, the latter

excluding Pecm IIs consolidation effects.

Requests by the ONS throughout 2Q15 for generation interruptions or load reductions by Itaqui and Parnaba I affected

operating revenues, which fell by R$82.2 million. Parnaba I was the most affected with a reduction in variable revenues of

R$68.5 million

Operating costs fell by R$86.1 million, mainly as a consequence of the 23.0% reduction in gross generation and the lower

fuel cost posted by Parnaba I as a result of the partial substitution of generation by Parnaba II

ENEVAs management continues to focus on effective control on Holding expenses, which in 2Q15 totaled R$14.2 million, or

R$1.2 million higher than in 2Q14. Net of inflation, Holding expenses remained in-line

Adjusted EBITDA reached R$50.9 million, a decrease of 13.0%

Adjusted net income fell by 11.1% after excluding non-recurring events such as the Pecm I sale and the impact of the

Holding Companys 20% debt reduction. The Company reported a 2Q15 Net Loss of R$92.4 million

The proceeds from the Pecm I sale (R$300 million) and the Holding Companys 20% debt reduction (R$492 million)

contributed to the R$537.5 million reduction in net debt. Remaining Holding Company debt has already been reprofiled as

provided for in the JR Plan

Growing average availability of Parnaiba Complex has proved how successful is the strategy of optimizing natural gas

resources by partially substituting Parnaba I for Parnaba II

Main Indicators

2Q15 2Q14

2Q15/ 2Q14 2Q15/

1H15 1H14

1H15/ 1H14 1H15/

(R$ million) 2Q14 Pro-forma 2Q14

PF 1H14 Pro-forma

1H14

PF

Net Operating Revenue 310.4 489.3 -36.6% 392.6 -20.9% 687.6 1,076.1 -36.1% 832.2 -17.4%

Operating Costs (267.3) (439.6) -39.2% (353.4) -24.4% (601.0) (934.4) -35.7% (737.9) -18.5%

Operating Expenses (22.4) (18.1) 23.5% (17.5) 28.2% (48.4) (54.9) -11.9% (52.8) -8.3%

EBITDA 64.5 79.3 -18.6% 58.5 10.4% 123.9 183.2 -32.4% 116.1 6.8%

EBITDA (Adjusted) 50.9 79.3 -35.9% 58.5 -13.0% 127.9 183.2 -30.2% 116.1 10.1%

Net Income 371.2 (112.3) - (103.9) - 242.6 (184.2) - (175.5) -

Net Income (Adjusted) (92.4) (112.3) -17.7% (103.9) -11.1% (221.0) (184.2) 20.0% (175.5) 26.0%

Net Debt 4,466.3 5,003.8 -10.7% 5,003.8 -10.7% 4,466.3 5,003.8 -10.7% 5,003.8 -10.7%

Total Gen. Energy Sales (GWh) 1,670.8 2,085.6 -19.9% 1,681.5 -0.6% 3,323.2 4,362.0 -23.8% 3,957.9 -16.0%



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2Q15 & Subsequent Events

Approval and Ratification by Justice of Pecm I sale and Judicial Recovery Plan

On April 30, 2015, the creditors of the Company and its subsidiary, ENEVA Participaes S.A., convened in a

Creditors General Meeting, which approved the sale of ENEVAs interest in the Pecm I TPP to EDP Energias do

Brasil for R$300 million and also the Judicial Recovery Plan, whose adjusted version was disclosed on April 10,

2015.

The final main terms and conditions of the Plan are summarized below:

(i) full payment of up to R$250,000 for each creditor, subject to the amount of their respective credits;

(ii) discount of 20% on the amount of credits held by each creditor on sums greater than R$250,000;

(iii) capitalization of 40% of the amount of credits greater than R$250,000; and

(iv) re-profiling of the remaining balance of credits, amounting to approximately R$985 million, under the

following terms and conditions:

Interest: CDI + 2.75% p.a. (for debt in Reais) or Libor + 0% p.a. (for debt in foreign currency)

Duration: 13 years

Grace period: 4 years (Interest) + 8 years (Principal)

Amortization: Customized, ramping up from 15% to 25% p.a.

Additionally, the Plan provides for a capital increase in the approximate amount of R$3,000 million, at an issue

price of R$0.15/Company share, to be composed of:

(i) contributions in cash;

(ii) capitalization of the credits held by creditors, amounting to approximately R$985 million; and

(iii) contributions of assets by certain Company stakeholders, totaling R$1,305 million, comprising:

50% of ENEVA Participaes;

9.1% of Parnaba Gs Natural (gas supplier of the Parnaba Complex plants);

30% of Parnaba I OCGT;

30% of Parnaba III OCGT;

30% of Parnaba IV TPP; and

BPMB Parnaba (owner of 30% of the gas fields that supplies the Parnaba Complex plants).

On May 12, 2015, the approved Judicial Recovery Plan was ratified by the 4th Commercial Court of the State of

Rio de Janeiro.


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Postponement of the maturity of Parnaba IIs debts

On August 10, 2015, ENEVA announced that made advances for the postponement of the maturity of debts with

the financial backers of Parnaba II. Once the negotiations are concluded, the Companys Judicial Recovery

process will continue.

Implementation of JR Plan Capital increase

On August 10, 2015, ENEVA called for an Extraordinary Shareholders Meeting to be held on August 26, 2015 to,

among other matters, vote for the launch of the capital increase provided for in the Reorganization Plan of the

Company and its subsidiary ENEVA Participaes. The main conditions of the transaction have been previously

described in this Earnings Release.

Settlement agreement with PGN and BPMB

On April 30, 2015, ENEVA and the Parnaba Complex Plants entered into a settlement agreement with Parnaba

Gs Natural (PGN) and BPMB Parnaba, natural gas suppliers of the Parnaba Complex Plants, aiming to prevent

potential disputes concerning natural gas supply, in view of the provisions of the Consent Decree (TAC) entered

into by ENEVA, Parnaba II and Aneel Brazils National Electricity Regulatory Agency on November 20, 2014.

This agreement states that PGN and BPMB will grant discounts on their natural gas supply to the Parnaba

Complex Plants in the following amounts: (i) R$141.8 million, for the postponement of the startup date of

Parnaba II, due monthly from April 2015 to September 2016; and (ii) R$167.0 million, equivalent to 50% of the

fixed revenue reduction of Parnaba II, amounting to R$334.1 million as provided for in the TAC, due between

2022 and 2036.

The agreement also provides for the extension of Parnaba IIs natural gas supply contract until the end of its

PPAs, as provided for in the TAC, i.e. April 30, 2036.

The conclusion of the agreement is an important step towards increasing the economic and financial feasibility of

the Parnaba Complex Plants, especially Parnaba II.

Restart of Pecm IIs operations after 38-day maintenance stoppage

Pecm II restarted operations on May 21, 2015 after a 38-day stoppage for the removal of ash from its furnace

and for the two-yearly preventive maintenance process, which was initially scheduled for August 2015.

This interruption may impact the availability records of Pecm II from 2016 onwards, according to the plants 60-

month rolling average availability calculation methodology.


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Conclusion of Sale of ENEVAs interest in Pecm I

The sale of ENEVAs interest in Pecm I to EDP Energias do Brasil was concluded on May 15, 2015, given that

all the conditions precedent of the transaction had been complied with. On this date, ENEVA received R$300

million as payment for the transaction, which will help strengthen its cash position, particularly during the

remaining period of the Judicial Recovery process.

Closing of the termination agreement to cancel power supply contracts with MMX

On April 13, 2015, ENEVA Comercializadora de Energia, ENEVAs energy trading arm, paid R$40 million to cancel

power supply contracts entered into with MMX Minerao e Metlicos and its subsidiaries, as provided for in the

terms and conditions of the termination agreement, as disclosed in the Material Fact of April 13, 2015. This

transaction exempted the company from delivering 180MW of energy between 2016 and 2031.


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Economic and Financial Performance

Given the partial sale of Pecm II, ENEVAs equity interest in the project was reduced to 50%. As a result,

pursuant to the accounting standards set forth in IFRS 11, as of June 1, 2014, Pecm II has been recognized

under the equity method.

Due to the Pecm I sale agreement signed on December 9, 2014, this asset has been accounted as an Asset for

Sale and not as an Investment and is consequently no longer recognized under Equity Income.

1. Net Operating Revenues

In 2Q15, ENEVA recorded consolidated net operating revenues of R$310.4 million, vs R$489.3 million in 2Q14.

The decrease was mostly attributable to the deconsolidation of Pecm II as of June 2014, which boosted

consolidated revenues in 2Q14 by R$96.7 million, and to the reduction of R$68.5 million in variable revenues

from Parnaba I as a result of ONS requests throughout 2Q15 for generation interruptions or load reductions, as

well as the reduction in the plants availability due to gas optimization in the Parnaba Complex.

Net revenues in 2Q15 consisted largely of revenues from Itaqui and Parnaba Is Regulated Market Power

Purchase Agreements (PPA), which totaled R$123.4 million and R$211.9 million, respectively. Parnaba IIs

revenues of R$13.7 million comprised the reimbursement of 50% of its operating costs by Parnaba I for partially

substituting the latter thermal plants generation, as provided for in the Aneel agreement to postpone the

Parnaba II startup date. Also in 2Q15, Parnaba IIs revenue was hit by an adjustment of R$23.4 million due to

overstatement in previous periods.

A breakdown of 2Q15 operating revenues is shown below:

Operating Revenues

(R$ million) Itaqui Parnaba I Parnaba II Amapari Write Off Consolidated

Gross Revenues 132.8 212.5 (9.7) - 9.7 345.3

Fixed Revenues 84.2 118.1 - - - 202.3

Variable Revenues 39.2 93.7 - - - 132.9

Free Market allocation 5.9 7.9 - - - 13.8

Ballast liquidation 6.7 - - - - 6.7

Other Revenues - - 13.7 - 9.7 23.4

Adjustments from previous periods (3.1) (7.3) (23.4) - - (33.8)

Deductions from Operating Revenues (13.4) (21.5) 0.9 - (0.9) (34.9)

Net Operating Revenues 119.4 191.0 (8.8) - 8.8 310.4


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2. Operating Costs

Operating Costs

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Personnel and Management (10.4) (10.9) -5.4% (24.8) (24.0) 3.4%

Fuel (105.4) (189.6) -44.4% (253.0) (417.5) -39.4%

Outsourced Services (25.3) (38.3) -33.9% (51.4) (74.3) -30.8%

Leases and Rentals (54.8) (73.2) -25.1% (89.9) (171.6) -47.6%

Energy Acquired for Resale (7.1) (28.6) -75.1% (21.2) (55.6) -61.8%

Other Costs (21.3) (52.0) -59.0% (76.6) (96.6) -20.7%

Transmission Charges (19.0) (13.9) 36.9% (39.1) (30.0) 30.3%

Compensation for Downtime 9.6 (22.8) - (14.4) (55.1) -74.0%

Other (11.9) (15.3) -22.5% (23.1) (11.4) 102.2%

Total (224.3) (392.7) -42.9% (516.9) (839.5) -38.4%

Depreciation and Amortization (43.0) (46.9) -8.4% (84.2) (94.9) -11.3%

Total Operating Costs (267.3) (439.6) -39.2% (601.0) (934.4) -35.7%

Operating costs totaled R$267.3 million in 2Q15, R$172.3 million less than in the same period last year, mainly

due to reductions in several cost items, such as fuel (-R$84.2 million), compensation for downtime (-R$32.4

million), energy acquired for resale (-R$21.5 million) and leases and rentals (-R$18.4 million).

The fuel cost reduction was mainly due to the deconsolidation of Pecm II as of June 2014 and the 40.5% year-

on-year reduction in fuel consumption by Parnaba I, whose generation has been partially covered by Parnaba

IIs operations as part of the agreement with Aneel to postpone the Parnaba II startup date, which had an

impact of R$27.1 million on this line. A further R$10.0 million contribution to the downturn came from the 7.6%

period reduction in Itaquis gross energy generation. Fuel costs in the quarter totaled R$105.4 million, R$43.4

million of which incurred by Itaqui and R$62.0 million by Parnaba I.

The deconsolidation of Pecm II also hit the outsourced services account, which totaled R$25.3 million, R$13.0

down on 2Q14. Excluding this effect, this cost remained stable.

The leases and rentals account line, which totaled R$54.8 million in the quarter, mainly comprises lease costs

incurred by Parnaba I, in accordance with its gas supply contract (R$44.9 million). As a result of Parnaba II

partially substituting Parnaba I, the latter has borne 50% of Parnaba IIs operating costs. These costs (R$13.7

million) have been compensated by the Parnaba Complex gas suppliers through a temporary reduction in the

gas costs billed to Parnaba I, as part of an agreement signed in 1Q15. Leases and rentals were overstated by

R$9.7 million in previous periods.

The reduction in operating costs in 2Q15 was also impacted by lower costs associated with power trades resulting

from the annual revision of the plants firm energy, as provided for in the PPAs, which totaled R$7.1 million.

Despite the higher cost associated with energy spot prices, the cost of the collateral contract purchase used to

cover Itaquis firm energy shortage remained stable (higher ballast demand offset by lower spot prices). The cost

of Energy Acquired for Resale was reduced by R$21.5 million due to the settlement in 2Q14 of a free market

power contract by Itaqui. Nevertheless, the sale revenues of the energy associated with the collateral contract

purchase used to cover the Itaquis firm energy shortage amounted to R$6.7 million.


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The other costs account, which totaled R$10.4 million in 2Q15, is mainly composed of transmission charges

(TUST), amounting to R$19.0 million, and compensation for power plant downtime (unavailability charges, also

known as ADOMP), amounting to -R$9.6 million. According to the ADOMP rules in place, the plants have to

reimburse the distribution cost of undelivered energy, whose calculation is based on a 60-month rolling average

priced by the difference between their declared variable cost per MWh (CVU) and the energy spot price (PLD). In

2Q15, Itaqui and Parnaba I incurred unavailability charges amounting to -R$13.2 million and R$3.7 million,

respectively. The negative figure reported by Itaqui was due to the Aneel-authorized reimbursement of previous

overstated unavailability charges totaling R$17.3 million. Additionally, due to a regulatory change in the ADOMP

calculation, which is currently being challenged by the Company, unavailability charges were overstated by R$3.7

million in Parnaba I.

Operating Highlights: During the period, Itaquis generation was interrupted in order to repair leakage points

in its boiler (152 hours in May and 260 hours in June). Additionally, generation was restricted on several days

due to ONS requests and the unavailability of coal mills. Net generation totaled 385GWh.

In 2Q15, Parnaba Is availability was compromised by gas optimization procedures and also by lower generation

from Parnaba II, which has been generating in substitution of part of Parnaba I since December 2014. Parnaba

II has been operating with reduced power in order to optimize water resources in the Parnaba Complex site.

Generation was also restricted on several days due to ONS requests. Net generation reached 1,005GWh,

including 496GWh from Parnaba II.

3. Operating Expenses

Operating expenses, excluding depreciation and amortization, amounted to R$66.8 million, R$51.2 million up on

2Q14. In the same period, the Holding Company posted operating expenses, excluding depreciation and

amortization, of R$59.4 million, vs. R$12.9 million in 2Q14. The second-quarter IPCA inflation index increased by

10.57%.

77% 87% 90% 88% 94%

67% 60% 74%

2Q14 3Q14 4Q14 1Q15 Apr-15 May-15 Jun-15 2Q15

Itaqui - Energy Availability

98% 94% 86% 81% 85% 98% 100% 94%

2Q14 3Q14 4Q14 1Q15 Apr-15 May-15 Jun-15 2Q15

Parnaba I - Energy Availability


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Operating Expenses Consolidated

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Personnel (5.7) (6.2) -7.1% (16.8) (21.5) -21.8%

Outsourced Services (12.2) (8.0) 51.5% (24.3) (25.4) -4.5%

Leases and Rentals (2.2) (1.6) 31.9% (3.8) (3.2) 18.2%

Other Expenses (1.5) (1.5) 0.3% (1.9) (3.3) -41.7%

Total (21.6) (17.3) 24.5% (46.7) (53.3) -12.4%

Depreciation and Amortization (0.8) (0.8) 1.9% (1.6) (1.6) 4.5%

Total Operating Expenses (22.4) (18.1) 23.5% (48.4) (54.9) -11.9%

Operating Expenses Holding

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Personnel (4.9) (4.9) -0.9% (13.3) (18.2) -26.7%

Stock Options (0.0) 0.2 - (0.2) (3.4) -93.6%

Outsourced Services (6.1) (5.5) 9.9% (13.8) (17.4) -20.7%

Leases and Rentals (2.1) (1.5) 39.6% (3.6) (2.9) 25.6%

Other Expenses (1.2) (0.8) 47.8% (1.3) (2.0) -37.1%

Total (14.2) (12.7) 11.6% (32.0) (40.5) -21.0%

Depreciation and Amortization (0.6) (0.6) 9.3% (1.3) (1.1) 14.8%

Total Operating Expenses (14.8) (13.3) 11.5% (33.3) (41.6) -20.0%

The main changes were as follows:

Outsourced services: Expenses with outsourced services in 2Q15 totaled R$12.2 million, R$4.1 million

up on 2Q14 mainly due to:

Higher shared services expenses transferred from the Holding Company to the plants (R$2.7 million);

and

An increase in consulting services related to financial restructuring and the Judicial Recovery process

(R$3.1 million)

4. EBITDA

ENEVA reported 2Q15 EBITDA of R$64.5 million, vs R$79.3 million in the same period last year. Despite the

reduction, which was primarily due to the deconsolidation of Pecm II as of June 2014, which contributed R$20.8

million to Consolidated EBITDA in 2Q14, it is worth noting the following:

Despite the ongoing gas optimization at the Parnaba Complex that led to a reduction in Parnaba Is

variable revenues, gas supply costs were reduced as a consequence of the agreement entered into with

PGN and BPMB, which were responsible for increasing this plants EBITDA by R$4.1 million. Unavailability

charges in Parnaba I were overstated, which had a negative impact on plants operating cost of R$3.7

million. Parnaba I reported 2Q15 EBITDA of R$54.5 million;

Positive regulatory outcomes impacting Itaquis downtime costs (R$17.3 million), boosted Itaquis

operating costs, leading to EBITDA of R$47.2 million in 2Q15 (R$27.1 million higher than in 2Q14);


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Holdings EBITDA totaled -R$14.2 million in 2Q15, R$1.5 million higher than 2Q14, as a result of higher

operating expenses involving JR-related services provided by third parties and payment of lease

termination fee of corporate headquarters facilities.

If we exclude the impacts of the overstated unavailability charges in Parnaba I and the regulatory decision on

Itaqui, Consolidated EBITDA for the period would have come to R$50.9 million.

5. Net Financial Result

Financial Result

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Financial Income 550.8 15.2 3526.6% 572.4 65.7 771.2%

Monetary variation 26.3 4.1 539.0% 29.1 25.5 14.0%

Revenues from financial investments 23.4 14.7 59.9% 41.9 33.9 23.5%

Marking-to-market of derivatives 6.6 (4.6) - 6.6 4.4 48.0%

Settlement of derivatives - - - - - -

Present value adjustment (debentures) - - - - - -

Others 494.5 1.0 48533.8% 494.9 1.9 26078.5%

Financial Expenses (138.0) (149.7) -7.9% (279.3) (324.5) -13.9%

Monetary variation (8.1) (0.2) 4112.2% (59.9) (16.2) 270.0%

Interest expenses (112.2) (134.2) -16.4% (192.7) (283.6) -32.1%

Settlement of derivatives - - - - - -

Marking-to-market of derivatives (2.3) (4.1) -43.1% (2.3) (4.1) -43.1%

Costs and Interest on debentures (0.0) (0.2) -86.7% (0.1) (0.4) -87.1%

Others (15.4) (11.1) 38.8% (24.3) (20.2) 20.3%

Net Financial Result 412.9 (134.5) - 293.1 (258.8) -

In 2Q15, ENEVA recorded a net financial expense of R$412.9 million, compared to a net expense of R$134.5

million in 2Q14.

The R$547.4 million improvement, despite the Pecm II deconsolidation as of June 2014 and Parnaba IIs higher

interest expenses as a result of its debt maturity, was mainly due to the execution of the procedures following

the approval of the Companys Judicial Recovery Plan, such as the 20% debt reduction (R$489.3 million in the

Holding Company) and the reprofiling of the remaining debt balance (R$985 million in the Holding Company),

which in turn reduced the financial cost (CDI + 2.75% p.a. or 6-month Libor) and extended the maturity of the

debt (13 years). All these factors helped reduce period interest expenses. Nevertheless, other debt measures

provided for in the Judicial Recovery Plan are still pending, including a 40% debt-to-equity conversion (R$985

million in the Holding Company). Additionally, the fluctuations in the FX rate hit debt denominated in foreign

currency, increasing the net monetary variation from R$3.9 million, in 2Q14, to R$18.3 million.


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6. Equity Income

The Company reported negative equity income of R$44.4 million, mainly impacted by the accounting reversal of

deferred taxes in ENEVA Participaes Holding and ENEVA Comercializadora de Energia due to an assessment of

the companies future taxable income.

The following analyses consider 100% of the projects. On June 30, 2015, ENEVA held an interest of 50.0% in

Pecm II and ENEVA Participaes and 52.5% in both Parnaba III and Parnaba IV (30% as a direct investment

and 22.5% through ENEVA Participaes).

However, due to the Pecm I sale agreement entered into on December 9, 2014, this asset has been accounted

as an asset for sale and not as an investment, and is no longer recognized under equity income. On May 15,

2015, the sale of ENEVAs interest in Pecm I was concluded.

6.1. Pecm II

INCOME STATEMENT - Pecm II

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Net Operating Revenues 114.1 140.1 -18.5% 253.7 287.2 -11.7%

Operating Costs (90.2) (121.8) -18.5% (198.9) (232.2) -14.4%

Operating Expenses (2.4) (1.2) 101.6% (4.0) (2.7) 50.9%

Net Financial Result (42.2) (39.8) 5.9% (99.8) (75.1) 32.9%

Other Revenues/Expenses (0.4) 0.0 - (0.4) (1.0) -65.0%

Earnings Before Taxes (21.0) (22.7) -7.6% (49.4) (23.8) 107.4%

Taxes Payable and Deferred - - - - 0.4 -100.0%

NET INCOME (21.0) (22.7) -7.6% (49.4) (23.4) 110.6%

EBITDA 38.2 33.5 13.9% 84.0 79.8 5.3%

Pecm II generated revenues of R$114.1 million in the quarter, comprising:

Fixed revenues amounting to R$75.9 million;

Variable revenues totaling R$41.4 million;

Free market allocations amounting to R$9.1 million;

Adjustments from previous periods totaling R$1.2 million;

Deductions from operating revenues amounting to R$13.5 million.

Pecm IIs variable revenues were impacted by the 42.6% reduction in net generation due to a stoppage for the

removal of furnace ash and by the anticipation of the two-yearly preventive maintenance stoppage.

Operating costs totaled R$73.6 million in the quarter, excluding depreciation and amortization, R$31.8 million

down on 2Q14, manly comprising:

Fuel costs of R$40.5 million, divided between coal (R$36.0 million) and diesel and other costs (R$4.5

million);


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Transmission charges amounting to R$6.0 million; and

Unavailability costs of R$7.3 million. Due to a change in the regulatory framework, which is currently

being challenged by the Company, unavailability charges were overstated by R$7.3 million.

In 2Q15, Pecm II recorded positive EBITDA of R$38.2 million, 13.9% higher than 2Q14. EBITDA adjusted by the

overstated unavailability charges raises to R$45.5 million.

The net financial expense amounted to R$42.2 million, mainly impacted by higher interest expenses, as a result

of the increase in the long-term financing interest reference rates and the debt renegotiations in 2Q15, which

basically consisted of the addition of a 6-month interest grace period and a 21-month amortization grace period.

Pecm II reported a net loss of R$21.0 million, impacted by the 5.9% upturn in the net financial expense.

Operating Highlights: The plant recorded weak availability figures in April and May as a result of the stoppage

to remove ash from the furnace and by the anticipation of the two-yearly preventive maintenance stoppage,

originally scheduled for August 2015. However, availability moved up in June, with the resumption of operations.

Net generation totaled 388GWh (99GWh in April, 71GWh in May and 219GWh in June).

6.2. ENEVA Participaes S.A.

6.2.1. Holding Operating Expenses

Operating Expenses ENEVA Participaes Holding

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Personnel (0.9) (6.4) -86.4% (4.8) (12.4) -61.6%

Outsourced Services (3.1) (7.3) -57.4% (1.9) (9.4) -79.3%

Leases and Rentals (0.0) (0.8) -97.2% (0.0) (1.4) -97.2%

Other Expenses (0.1) (0.4) -74.6% (0.2) (0.7) -62.4%

Total (4.1) (15.0) -72.5% (7.0) (23.9) -70.7%

Depreciation and Amortization (0.0) (0.0) -5.3% (0.0) (0.0) -4.2%

Total Operating Expenses (4.1) (15.0) -72.4% (7.0) (23.9) -70.6%

Operating expenses, excluding depreciation and amortization, amounted to R$4.1 million in 2Q15, a decrease of

R$10.9 million compared to 2Q14. The main changes are summarized as follows:

Personnel: Personnel expenses totaled R$0.9 million in 2Q15, compared to R$6.4 million in the same

period in the previous year. The reduction was largely a result of:

96% 77%

99% 89%

41% 29%

89%

53%

2Q14 3Q14 4Q14 1Q15 Apr-15 May-15 Jun-15 2Q15

Pecm II - Energy Availability


12

The leaner corporate structure with a substantial reduction in the workforce and a decline in labor

costs associated with layoffs (-R$1.5 million);

Lower provisions for employees bonuses compared to 2Q14 (-R$1.5 million);

Lower shared expenses from personnel transferred from ENEVA Participaes to the plants (-R$1.4

million); and

The reduction in provisions for stock option-related expenses resulting from a decrease in the number

of options outstanding and the share price since 2Q14 (-R$0.7 million).

Outsourced services: Expenses with outsourced services in 2Q15 totaled R$3.1 million, R$4.2 million

down on 2Q14, mainly due to:

The reduction in technical consulting expenses (-R$5.4 million);

Lower IT expenses, due to the discontinuation of several service providers and the

implementation of in-house solutions (-R$1.0 million); and

Higher shared service expenses billed by ENEVA Participaes to the plants (+R$2.3 million).

6.3.2. Parnaba III

INCOME STATEMENT - Parnaba III

(R$ million) 2Q15 2Q14 % 1H15 1H14 %


Operating Costs (39.1) (66.8) -41.5% (105.6) (130.2) -18.9%


Net Financial Result (0.2) (2.5) -92.9% (4.2) (5.3) -20.5%

Other Revenues/Expenses (0.0) (0.5) -99.9% 0.5 (1.3) -

Earnings Before Taxes 8.6 (13.1) - 19.3 (3.8) -

Taxes Payable and Deferred (1.1) 5.0 - (3.5) 1.9 -

NET INCOME 7.4 (8.1) - 15.8 (1.9) -

EBITDA 10.4 (8.4) - 25.5 5.9 330.6%

Net revenues in the quarter amounted to R$49.1 million, consisting of:

Fixed revenues totaling R$26.2 million;

Variable revenues amounting to R$26.4 million;

Free market allocations totaling R$1.8 million;

Adjustments from previous periods amounting to R$0.1 million;

Deductions from operating revenues totaling R$5.5 million.

Parnaba IIIs revenues fell by 13.8% over the same period last year, as a consequence of the 36.4% reduction

in net generation, in turn mainly due to the plants lower period ONS dispatch.

Operating costs, excluding depreciation and amortization, fell by R$27.7 million to R$37.5 million in the quarter,

and mainly comprised:


13

Fuel - natural gas (R$12.1 million);

Lease costs, in accordance with the gas supply agreement (R$16.4 million); and

Unavailability costs (R$0.6 million). Due to a change in the regulatory framework, which is currently

being challenged by the Company, unavailability charges were overstated by R$0.6 million.

In 2Q15, Parnaba III recorded positive EBITDA of R$10.4 million. EBITDA adjusted by the overstated

unavailability charges raise to R$11.0 million.

The net financial expense amounted to R$0.2 million, impacted by the debt structuring fee in 2Q15, despite the

increase in revenues from intercompany loans over the quarters.

Parnaba III reported net income of R$7.4 million in 2Q15.

Operating Highlights: In 2Q15, Parnaba III did not generate its base load for several days as requested by the

ONS due to the CVU order of merit. Availability recorded in May 2015 is currently being challenged by the

Company with the ONS. Net generation totaled 168GWh.

6.3.3. Parnaba IV

INCOME STATEMENT - Parnaba IV

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Net Operating Revenues 7.2 5.2 38.5% 14.4 38.1 -62.2%

Operating Costs (1.9) (17.0) -88.9% (4.0) (40.1) -90.1%

Operating Expenses (0.2) (0.3) -41.3% (0.4) (1.0) -62.9%

Net Financial Result (6.9) (8.2) -15.6% (13.1) (9.4) 39.3%

Other Revenues/Expenses 0.0 (0.0) - (0.0) (0.9) -97.0%

Earnings Before Taxes (1.8) (20.3) -91.3% (3.1) (13.4) -77.2%

Taxes Payable and Deferred 0.6 6.9 -91.3% (0.0) 5.6 -100.3%

NET INCOME (1.2) (13.4) -91.3% (3.1) (7.8) -60.5%

EBITDA 6.4 (10.9) - 12.7 (0.6) -

80% 82% 67% 96% 100%

69% 98% 89%

2Q14 3Q14 4Q14 1Q15 Apr-15 May-15 Jun-15 2Q15

Parnaba III - Energy Availability


14

INCOME STATEMENT - Parnaba Comercializadora

(R$ million) 2Q15 2Q14 % 1H15 1H14 %


Operating Costs (17.9) (3.0) 487.5% (29.6) (9.2) 221.8%



Other Revenues/Expenses 1.5 - - (0.0) - -

Earnings Before Taxes (15.6) (0.0) 349678.8% (24.7) (0.0) 228565.6%

Taxes Payable and Deferred - - - - - -

NET INCOME (15.6) (0.0) 349678.8% (24.7) (0.0) 228565.6%

EBITDA (17.2) (0.0) 441097.4% (25.0) (0.0) 243663.3%

As of July, 2014, Parnaba IVs energy supply structure has consisted of two entities, Parnaba IV itself and

Parnaba Comercializadora, in which different revenues and costs of the business are accounted. Parnaba IV and

Parnaba Comercializadora are interrelated companies, the latter being the trading vehicle through which

Parnaba IVs energy is sold.

Parnaba IVs net revenues in the quarter amounted to R$7.2 million, mainly composed of the plant lease

contract with Parnaba Comercializadora totaling R$7.9 million. Parnaba Comercializadoras revenues totaled

R$0.7 million from market power sales amounting to R$1.8 million

Excluding depreciation and amortization, Parnaba IVs operating costs came to R$0.6 million in 2Q15, mainly

composed of costs with insurance and materials totaling R$0.5 million. Parnaba Comercializadoras costs stood

at R$17.9 million, largely consisting of:

Natural gas (R$9.1 million), recognized under energy acquired for resale due to the companys trading

purpose;

Energy acquisitions, consisting solely of the costs associated with submarket exposure, amounting to

R$15.4 million;

Lease costs (R$9.0 million), comprising the lease contract with Parnaba IV (R$7.9 million) and Kinrosss

46MWavg contribution to the power supply, in accordance with the contract entered into with this party,

amounting to R$19.3 million; and

Transmission charges (R$1.8 million).

Parnaba IV recorded a net financial expense of R$6.9 million, R$1.3 million less than in 2Q14, associated with

hedge instruments terminated in April 2014.

Operating Highlights: During the period, Parnaba IV did not generate energy for 157 hours as requested by

the ONS. Availability was also jeopardized by preventive and forced maintenance. Net generation totaled

103GWh.


15

7. Net Income

In 2Q15, ENEVA reported net income of R$371.2 million, R$483.5 million more than in the same period last year.

mainly due to the implementation of the 20% debt reduction provided for in the Companys Judicial Recovery

Plan, which boosted results by R$489.3 million. The sale of ENEVAs interest in Pecm I (R$300 million) also

positively impacted net income, although this was more than offset by a loss on the disposal of this asset totaling

R$339.3 million. The net impact of this transaction was -R$39.3 million.

The adjusted net result for the period, excluding these effects and non-recurring impacts on EBITDA, was a loss

of R$92.4 million.

INCOME STATEMENT

(R$ million) 2Q15 2Q14 % 1H15 1H14 %

Net Operating Revenues 310.4 489.3 -36.6% 687.6 1,076.1 -36.1%

Operating Costs (267.3) (439.6) -39.2% (601.0) (934.4) -35.7%

Operating Expenses (22.4) (18.1) 23.5% (48.4) (54.9) -11.9%


Equity Income (44.2) (35.2) 25.4% (72.0) (42.6) 69.1%

Other Revenues/Expenses (40.2) 29.2 - (40.2) 38.9 -

Earnings Before Taxes 349.2 (109.0) - 219.0 (175.7) -

Taxes Payable and Deferred 25.6 (1.4) - 27.9 (5.3) -

Minority Interest (3.6) (1.8) 93.6% (4.3) (3.2) 32.9%

NET INCOME 371.2 (112.3) - 242.6 (184.2) -

EBITDA 64.5 79.3 -18.6% 123.9 183.2 -32.4%

8. Debt

On June 30, 2015, consolidated gross debt amounted to R$4,884.8 million, 7.4% down on March 31, 2015. In

comparison with June 30, 2014, consolidated gross debt fell by 4.1%, or R$206.7 million, mainly due to the

approval of the Judicial Recovery Plan, which provided for a 20% reduction to the Holding Companys

outstanding debt. Further debt measures provided for in the Judicial Recovery Plan, including a 40% debt-to-

equity conversion, are pending to the conclusion of the capital increase.

63% 91% 91%

72% 94% 100% 89% 94%

2Q14 3Q14 4Q14 1Q15 Apr-15 May-15 Jun-15 2Q15

Parnaba IV - Energy Availability


16

Consolidated Debt Profile (R$ million)

The balance of short-term debt at the end of June, 2015 was R$1,052.6 million, R$2,376.7 million less than on

March 31, 2015. All short-term debt was allocated in the projects (vs. R$995.7 million on March 31, 2015), as

follows:

R$137.9 million related to the current portion of the short-term debt of Itaqui and Parnaba I;

R$914.7 million related to bridge loans to Parnaba II.

As a consequence of the approval of the Judicial Recovery Plan, the Holding Companys outstanding debt, after

the aforementioned 20% reduction, has been reprofiled and fully allocated to the long term. On March 31, 2015,

consolidated short-term debt was R$2,433.6 million. At the end of June, 2015, the average cost of debt was

12.98% p.a. and the average maturity was 6.9 years.

Debt Maturity Profile* (R$ million)

*Amounts include principal + capitalized interest + charges

Net of cash and charges on debt, debt closed 2Q15 at R$4,466.3 million, 12.3% less than at the end of 1Q15.

1,974 40% 2,911

60%

Working Capital Project Finance

1,053 22%

3,832 78%

Short Term Long Term

418.5 1,052.6

40.7 133.1 140.4

1,543.8

1,974.2

Cash & Cash

Equivalents

2015 2016 2017 2018 From 2019 on

Project Finance Working Capital


17

Consolidated Cash and Cash Equivalents (R$ million)

*DSRA = Debt Service Reserve Account

Consolidated cash and cash equivalents totaled R$418.5 million at the end of June, 2015, R$237.5 million up on

the March 31, 2015 balance.

9. Capital Expenditures (Accounting view)

During 2Q15, ENEVAs consolidated capex totaled R$40.6 million, mainly due to the remaining investments in

deployment of Parnaba II.

Consolidated Assets (R$ million)

2Q15 2Q14

Capex Capitalized Interest

Depreciation & Amortization

Capex Capitalized

Interest Depreciation & Amortization

Itaqui 5.3 0.0 -18.3

12.8 0.0 -21.4

Parnaba I 9.4 0.0 -13.0

-11.4 0.0 -25.8

Parnaba II 25.9 0.0 -11.8

48.3 20.1 0.0

Consolidated Equity Assets Adjusted by ENEVAs interest (R$ million)

2Q15 2Q14

Capex Capitalized Interest

Depreciation & Amortization

Capex Capitalized

Interest Depreciation & Amortization

Pecm II 6.7 0.0 -16.6 16.2 0.0 -16.5

180.9

300.0

392.1 (312.3)

(55.9) (53.1)

(22.0) (11.2)

418.5

Cash and Cash

Equivalents

(1Q15)

Sale of Pecm I Revenues Operating

Costs and

Expenses

CAPEX Intercompany

Loans and

Contributions

to Subsidiaries

Debt Service DSRA/Others Cash and Cash

Equivalents

(2Q15)


18

10. Capital Markets

Stock Price Performance

ENEVAs capital on June 30, 2015 consisted of 840,106,107 common shares, 37.1% of which comprising the free

float.

ENEVAs share price at the end of the second quarter of 2015 was R$0.30, 50.0% up on the R$0.20 recorded on

March 31, 2015. In the same period, the Bovespa Index (Ibovespa) increased by 3.8% and the Electric Utilities

Index (IEE) moved up by 10.0%. In the last 12 months, ENEVAs shares fell by 75.6%, while the Ibovespa and

the IEE climbed by 0.2% and 7.5%, respectively. The Companys market capitalization at the end of the quarter

was R$252.0 million and daily traded volume averaged R$0.9 million.

Free Float Profile

(as of June 30, 2015)

0

20

40

60

80

100

120

140

160

180

03/3

1/1

5

04/0

7/1

5

04/1

4/1

5

04/2

1/1

5

04/2

8/1

5

05/0

5/1

5

05/1

2/1

5

05/1

9/1

5

05/2

6/1

5

06/0

2/1

5

06/0

9/1

5

06/1

6/1

5

06/2

3/1

5

06/3

0/1

5

Capital Markets Performance - 2Q15 06/30/2015 = 100

IBOV ENEV3 IEEX

50,0%

3,8%

10,0%

R$/share

03/31/2015 0.20

06/30/2015 0.30

0

20

40

60

80

100

120

140

06/3

0/1

4

07/3

1/1

4

08/3

1/1

4

09/3

0/1

4

10/3

1/1

4

11/3

0/1

4

12/3

1/1

4

01/3

1/1

5

02/2

8/1

5

03/3

1/1

5

04/3

0/1

5

05/3

1/1

5

06/3

0/1

5

Capital Markets Performance - 12m 06/30/2014 = 100

IBOV ENEV3 IEEX

R$/share

06/30/2014 1.23

06/30/2015 0.30

-75,6%

-0,2%

7,5%

98.6%

1.4%

Brazil International

19.8%

80.2%

Individuals Institutional


19

2Q15 Conference Call

Friday, August 14, 2015

11:00 am (Brasilia Time) / 10:00 am (US EST)

Access numbers Brazil

+55 11 3193-1001

+55 11 2820-4001

Access numbers US

+1 786 924-6977

Password: ENEVA

Webcast in English: www.ccall.com.br/eneva/2q15.htm Webcast in Portuguese: www.ccall.com.br/eneva/2t15.htm

ENEVA Contacts

Investor Relations:

Rodrigo Vilela

Carlos Cotrim

+55 21 3721-3030

[email protected]

ir.ENEVA.com.br

Press:

Marina Duarte +55 21 3721-3373 / + 55 21 98132-0459


20

ANNEX

I. Balance Sheet Assets (Holding and Consolidated)

Holding Consolidated

(R$ million) Jun-15 Dec-14 Jun-15 Dec-14

Current Assets 292.8 386.5 794.8 944.7

Cash and Cash Equivalents 269.9 72.5 418.5 157.3

Accounts Receivable 20.8 14.0 259.9 346.1

Gains on Derivatives 1.8 - 0.2 -

CCC Subsidies - - - -

Assets for Sale - 300.0 - 300.0

Inventories - - 90.3 99.2

Escrow Accounts 0.0 0.0 0.0 0.0

Prepaid Expenses 0.3 0.0 25.9 42.1

Noncurrent Assets

Long-term Assets 1,134.7 1,101.2 878.6 742.7

Accounts Receivable - Related Parties 943.7 831.3 502.3 406.8

AFAC 169.1 248.0 4.6 26.3

Escrow Accounts - - 97.7 62.1

Deferred Taxes (IR/CSLL) - - 249.3 219.7

Prepaid Expenses - R&D 21.9 21.9 24.7 27.9

Fixed Assets 2,122.6 2,242.3 5,269.4 5,357.0

Equity Interest 2,108.9 2,228.1 673.8 733.9

Property, Plant and Equipment 10.8 11.2 4,402.9 4,423.5

Intangible Assets 2.9 2.9 192.6 199.6

Deferred Assets - - - -

TOTAL ASSETS 3,550.1 3,730.0 6,942.8 7,044.4


21

II. Balance Sheet Liabilities (Holding and Consolidated)


(R$ million) Jun-15 Dec-14 Jun-15 Dec-14

Current Liabilities 15.9 2,229.1 1,343.9 3,619.9

Accounts Payable 10.6 11.7 126.4 149.8

Personnel 4.2 6.7 10.8 14.9

Charges on Debts (0.0) 214.4 100.5 266.7

Taxes Payable 1.1 1.6 20.6 27.1

Short-Term Debt - 1,984.7 952.1 3,022.5

Losses on Derivatives - - - -

Other 0.1 9.8 133.6 138.9

Noncurrent Liabilities - - - -

Long-Term Liabilities 2,111.4 357.9 4,099.7 2,206.8

Accounts Payable - - - -

Deferred Taxes (IR/CSLL) 17.7 9.8 (31.9) (41.4)

Long-Term Debt 1,956.5 173.0 3,864.1 1,915.9

Intercompany Loan Payable 129.2 171.6 254.6 320.9

Provision for Losses 8.0 3.5 0.4 0.4

Others - - 12.5 11.0

Minority Interests - - 84.0 82.5

Shareholder's Equity 1,422.7 1,143.0 1,415.1 1,135.3

Common Stock 4,707.1 4,707.1 4,707.1 4,707.1

Capital Reserve - - - -

Reserve Valuation Adjustments - (36.9) - (36.9)

Profit Reserve 351.0 350.8 351.0 350.8

Advance for Future Capital Increase - AFAC - - - -

Translation Adjustments 0.0 0.0 0.0 0.0

Accumulated Profit or Losses (3,878.0) (2,360.8) (3,885.6) (2,368.6)

Net Income 242.6 (1,517.2) 242.6 (1,517.2)

TOTAL LIABILITIES 3,550.1 3,730.0 6,942.8 7,044.4


22

III. Income Statement (Holding and Consolidated)


(R$ million) 2Q15 2Q14 2Q15 2Q14

Gross Operating Revenues - -

345.3 546.2

Energy Supply - -

345.3 546.1

Energy Commercialization - -

- 0.0

Deductions from Gross Revenue - -

(34.9) (56.9)

Net Operating Revenues - -

310.4 489.3

Operating Costs - -

(267.3) (439.6)

Personnel - -

(10.4) (10.9)

Material - -

(6.2) (4.2)

Fuel - -

(105.4) (189.6)

Outsourced Services - -

(25.3) (38.3)

Depreciation and Amortization - -

(43.0) (46.9)

Leases and Rentals - -

(54.8) (73.2)

CCC Subsidy - -

- (1.2)

Energy Acquired for Resale - -

(7.1) (28.6)

Other costs - -

(15.1) (46.5)

Operating Expenses (14.8) (13.3)

(22.4) (18.1)

Personnel (4.9) (4.9)

(5.7) (6.2)

Material (0.1) (0.1)

(0.1) (0.1)

Outsourced Services (6.1) (5.5)

(12.2) (8.0)

Depreciation and Amortization (0.6) (0.6)

(0.8) (0.8)

Leases and Rentals (2.1) (1.5)

(2.2) (1.6)

Other Expenses (1.1) (0.7)

(1.4) (1.4)

EBITDA (14.2) (12.7)

64.5 79.3

Net Financial Income

526.4 (49.6)

412.9 (134.5)

Other Revenues/ Expenses

(40.3) (0.8)

(40.2) 29.2

Equity Income

(100.0) (48.6)

(44.2) (35.2)

Earnings Before Taxes

371.2 (112.3)

349.2 (109.0)

Taxes (IR/CSLL)

- -

0.1 0.2

Provision for Deferred Taxes (IR/CSLL)

- -

25.5 (1.6)

Minority Interests

- -

(3.6) (1.8)

NET INCOME 371.2 (112.3)

371.2 (112.3)


23

IV. Project Balance Sheet Assets (Consolidated Projects)

Itaqui Amapari Parnaba I Parnaba II

(R$ million) Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14

Current Assets 237.2 205.8 17.6 21.7 205.3 206.4 43.4 113.2

Cash and Cash Equivalents 85.8 29.1 13.1 16.7 48.1 38.1 1.5 0.9

Accounts Receivable 79.0 92.3 0.9 1.3 147.2 155.8 12.0 82.7

Gain on Derivatives - - - - - - - -

CCC Subsidies - - - - - - - -

Assets for Sale - - - - - - - -

Inventories 71.6 80.4 3.6 3.6 9.9 7.5 5.3 3.7

Escrow Accounts - - - - - - - -

Prepaid Expenses 0.8 4.0 0.0 0.1 0.1 5.0 24.6 25.8

Noncurrent Assets - - - - - - - -

Long-Term Assets 251.7 234.1 0.5 0.4 57.6 40.7 66.2 27.9

Accounts Receivable - Related Parties 4.9 4.5 0.0 0.0 2.9 2.7 18.3 12.3

AFAC - - - - - - - -

Escrow Accounts 54.5 37.4 - - 43.2 24.6 - -

Deferred Taxes (IR/CSLL) 192.1 192.1 - - 9.4 12.0 47.8 15.6

Prepaid Expenses - R&D 0.1 - 0.5 0.4 2.1 1.4 - -

Fixed Assets 2,186.0 2,215.8 0.0 (0.0) 1,129.7 1,138.4 1,251.3 1,239.7

Equity Interest - - - - - - - -

Property, Plant and Equipment 2,176.1 2,205.5 0.0 (0.1) 969.1 971.7 1,246.3 1,234.5

Intangible Assets 9.8 10.3 - 0.1 160.6 166.6 5.0 5.2

Deferred Assets - - - - - - - -

TOTAL ASSETS 2,674.8 2,655.6 18.1 22.1 1,392.6 1,385.4 1,361.0 1,380.8


24

V. Project Balance Sheet Liabilities (Consolidated Projects)


(R$ million) Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14

Current Liabilities 159.0 256.7 27.9 28.2 194.3 199.3 948.4 906.6

Accounts Payable 36.6 46.8 25.8 24.7 33.5 30.0 19.9 36.6

Personnel 3.2 3.4 0.4 0.5 2.0 2.3 1.0 2.0

Charges on Debt 7.0 8.9 - - 10.1 4.7 83.4 38.7

Taxes Payable 16.6 13.0 0.1 1.1 2.3 6.6 0.5 4.8

Short Term Debt - 92.3 - - 120.8 137.7 831.3 807.7

Losses on Derivatives - - - - - - - -

Other 95.6 92.3 1.7 1.9 25.6 18.0 12.4 16.8

Noncurrent Liabilities - - - - - - - -

Long-Term Liabilities 1,713.9 1,541.1 1.8 1.2 708.5 715.4 12.8 11.9

Accounts Payable - - - - - - - -

Deferred Taxes (IR/CSLL) (13.5) (14.1) - - (36.1) (37.1) - -

Long-Term Debt 1,279.0 1,127.8 - - 628.6 615.1 - -

Intercompany Loan / Payable 447.8 426.7 0.4 - 107.4 130.3 12.8 11.9

Provision for Losses - - 0.3 - - - - -

Others 0.6 0.6 1.2 1.2 8.6 7.1 - -

Minority Interests - - - - - - - -

Shareholder's Equity 801.9 857.8 (11.6) (7.2) 489.8 470.7 399.7 462.3

Common Stock 1,767.4 1,757.4 84.8 84.8 263.6 263.6 493.0 445.7

Capital Reserve - - 6.5 6.5 - - - -

Reserve Valuation Adjustments - - - - - - - -

Profit Reserve 0.1 0.1 - 12.0 16.7 0.0 0.7 0.7

Advance for Future Capital Increase - AFAC - 10.0 - - 188.1 188.1 - 47.3

Translation Adjustments - - - - - - - -

Accrued Profit or Losses (909.7) (478.8) (98.5) (3.6) - (17.0) (31.3) (17.6)

Net Income (55.9) (430.9) (4.4) (106.9) 21.4 36.0 (62.6) (13.8)

TOTAL LIABILITIES 2,674.8 2,655.6 18.1 22.1 1,392.6 1,385.4 1,361.0 1,380.8


25

VI. Project Income Statement (Consolidated Projects)


(R$ million) 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14

Gross Operating Revenues 132.8 152.2 - 10.3 212.5 275.4 (9.7) 0.0

Energy Supply 132.8 152.2 - 10.3 212.5 275.4 0.0 -

Energy Commercialization - - - - 0.0 - (9.7) 0.0

Deductions from Gross Revenue (13.4) (15.2) - (2.2) (21.5) (27.9) 0.9 -

Net Operating Revenues 119.4 137.0 - 8.1 191.0 247.5 (8.8) 0.0

Operating Costs (88.2) (138.1) (0.6) (6.6) (147.5) (208.6) (22.1) (0.0)

Personnel (6.4) (5.5) (0.7) (1.0) (4.5) (4.0) 1.2 0.0

Material (4.3) (3.0) (0.0) (0.2) (1.2) (0.8) (0.7) (0.0)

Fuel (43.4) (53.4) (0.1) (2.3) (62.0) (92.6) - -

Outsourced Services (15.5) (16.8) (0.1) (0.5) (8.2) (10.1) (1.4) (0.0)

Depreciation and Amortization (18.3) (22.6) - (1.4) (12.9) (12.0) (11.8) (0.0)

Leases and Rentals (1.0) (0.4) (0.0) (0.0) (45.0) (72.1) 0.0 -

CCC Subsidy - - - (1.2) - - - -

Energy Acquired for Resale (6.0) (27.6) - - (0.9) (0.6) (0.2) -

Other costs 6.5 (8.8) 0.3 (0.1) (12.8) (16.4) (9.1) (0.0)

Operating Expenses (2.4) (1.5) (0.8) (0.3) (2.1) (0.8) (2.4) (3.3)

Personnel (0.1) (0.5) 0.1 (0.1) (0.0) (0.0) (0.9) (2.3)

Material (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) - (0.0)

Outsourced Services (2.1) (0.8) (0.9) (0.2) (1.7) (0.5) (1.4) (0.7)

Depreciation and Amortization (0.1) (0.1) - (0.0) (0.1) (0.1) (0.0) (0.0)

Leases and Rentals (0.0) (0.0) (0.0) (0.0) - (0.0) (0.1) (0.1)

Other Expenses (0.1) (0.1) (0.0) (0.0) (0.2) (0.1) (0.1) (0.1)

EBITDA 47.2 20.1 (1.4) 2.6 54.4 50.3 (21.5) (3.2)

Net Financial Income (41.0) (38.6) (0.2) 0.2 (24.2) (19.8) (48.0) (0.1)

Other Revenues/ Expenses (0.6) 41.4 (0.4) - (0.0) (11.6) - -

Equity Income - - - - - - - -

Earnings Before Taxes (12.8) 0.2 (2.0) 1.3 17.1 6.8 (81.3) (3.3)

Taxes (IR/CSLL) - - - 0.1 0.1 0.1 - -

Provision for Deferred Taxes (IR/CSLL) - - - (0.3) (2.1) (2.4) 27.6 1.1

Minority Interests - - - - - - - -

NET INCOME (12.8) 0.2 (2.0) 1.1 15.1 4.5 (53.7) (2.2)


26

VII. Project Balance Sheet Assets (Projects accounted as Equity Income)

ENEVA Part.

Holding ENEVA Part. Consolidated

Pecm II Parnaba III Parnaba IV Parnaba

Comercializadora

(R$ million) Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14

Current Assets 1.8 22.1 92.3 131.2 196.5 129.1 91.4 71.3 24.7 14.3 14.6 20.6

Cash and Cash Equivalents 0.0 1.2 8.0 11.3 67.6 22.0 32.5 14.1 0.0 0.3 0.2 4.6

Accounts Receivable 1.8 18.2 53.7 95.5 77.3 80.4 47.5 52.1 24.1 13.1 14.3 16.0

Gain on Derivatives - - - - - - 0.1 0.1 - - - -

CCC Subsidies - - - - - - - - - - - -

Assets for Sale - - - - - - - - - - - -

Inventories - - 0.0 0.0 51.5 23.7 11.2 3.9 0.5 0.2 - -

Escrow Accounts - 2.6 30.6 24.4 - - 0.0 0.0 - - - -

Prepaid Expenses - - - 0.0 0.1 3.1 0.0 1.2 0.1 0.6 - -

Noncurrent Assets - - - - - - - - - - - -

Long-Term Assets 73.4 57.4 90.2 108.2 112.3 109.0 90.3 86.3 37.1 22.2 0.1 0.0

Accounts Receivable - Related

Parties 60.1 56.3 67.8 84.6 - 3.0 72.9 68.1 33.6 18.9 0.1 0.0

AFAC 13.3 1.1 0.1 1.0 - - - - - - - -

Escrow Accounts - - - - 25.4 19.2 - - - - - -

Deferred Taxes (IR/CSLL) - - 22.3 22.6 86.1 86.1 17.3 18.2 3.6 3.3 - -

Prepaid Expenses - R&D - - - - 0.8 0.7 0.1 - - - - -

Fixed Assets 184.6 208.8 177.9 182.1 1,879.9 1,904.1 175.8 181.5 146.3 161.2 - -

Equity Interest 151.7 176.8 132.6 137.3 - - - - - - - -

Property, Plant and Equipment 6.6 6.6 18.7 19.0 1,879.2 1,903.9 175.8 181.5 146.3 161.2 - -

Intangible Assets 26.3 25.4 26.7 25.8 0.6 0.3 - - - - - -

Deferred Assets - - - - - - - - - - - -

TOTAL ASSETS 259.8 288.3 360.3 421.5 2,188.6 2,142.3 357.5 339.2 208.1 197.7 14.6 20.6


27

VIII. Project Balance Sheet Liabilities (Projects accounted as Equity Income)

ENEVA Part.


Pecm II Parnaba III Parnaba IV Parnaba

Comercializadora

(R$ million) Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14 Jun-15 Dec-14

Current Liabilities 7.9 16.3 25.1 72.8 162.8 164.4 174.1 164.1 7.3 5.7 9.0 6.0

Accounts Payable 1.2 0.9 17.8 55.3 81.3 33.2 39.8 33.7 1.9 1.8 9.0 1.6

Personnel 6.2 9.9 6.7 10.7 0.9 0.9 - - - 0.1 - -

Charges on Debt - - - - 14.3 2.5 2.8 1.6 - - - -

Taxes Payable 0.4 1.1 0.6 1.4 15.4 12.3 1.9 0.4 5.4 3.7 0.0 0.0

Short Term Debt - - - - 2.2 77.0 120.0 120.0 - - - -

Losses on Derivatives - - - - - - - - - - - -

Other (0.0) 4.3 (0.0) 5.4 48.7 38.4 9.5 8.4 - 0.1 0.0 4.4

Noncurrent Liabilities - - - - - - - - - - - -

Long-Term Liabilities 100.4 39.5 194.6 126.8 1,476.8 1,379.6 30.5 38.0 186.7 174.9 43.1 27.3

Accounts Payable - - - - - - - - - - - -

Deferred Taxes (IR/CSLL) - - - - (10.8) (10.8) - - - - - -

Long-Term Debt - - - - 1,113.4 1,027.6 - - - - - -

Intercompany Loan / Payable 66.1 32.9 68.3 34.6 371.7 360.4 25.6 34.8 184.8 173.3 43.1 27.3

Provision for Losses 34.3 6.6 126.3 92.1 2.6 2.5 - - - - - -

Others - - - - - - 4.9 3.3 1.9 1.6 - -

Minority Interests - - - - - - - - - - - -

Shareholder's Equity 151.6 232.6 140.7 222.0 549.0 598.4 152.9 137.1 14.1 17.2 (37.5) (12.7)

Common Stock 266.8 266.8 266.8 266.8 799.2 799.2 160.3 160.3 15.9 15.9 0.1 0.1

Capital Reserve 62.0 62.0 62.0 62.0 - - - - - - - -

Reserve Valuation Adjustments 1.1 1.0 1.1 1.0 - - - - - - - -

Profit Reserve - - - - 0.3 0.3 - - 3.6 3.6 - -

Advance for Future Capital Increase -

AFAC 4.5 25.5 4.5 25.8 - - 7.2 7.2 - - - -

Translation Adjustments - - - - - - - - - - - -

Accrued Profit or Losses (122.7) (60.2) (133.6) (71.1) (201.1) (168.0) (30.4) (20.2) (2.3) 0.0 (12.8) (0.0)

Net Income (60.1) (62.4) (60.1) (62.4) (49.4) (33.0) 15.8 (10.2) (3.1) (2.3) (24.7) (12.8)

TOTAL LIABILITIES 259.8 288.3 360.3 421.5 2,188.6 2,142.3 357.5 339.2 208.1 197.7 14.6 20.6


28

IX. Project Income Statement (Projects accounted as Equity Income)

ENEVA Part.


Pecm II Parnaba III Parnaba IV Parnaba Comercializadora

(R$ million) 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14

Gross Operating Revenues - - 38.2 162.9 127.6 156.9 54.6 63.4 7.9 5.8 0.9 4.1

Energy Supply - - 0.1 0.2 127.6 156.9 54.6 64.8 - 2.8 (0.9) -

Energy Commercialization - - 38.1 162.7 - - - (1.3) 7.9 3.0 1.8 4.1

Deductions from Gross Revenue - - (3.5) (15.4) (13.5) (16.8) (5.5) (6.5) (0.7) (0.6) (0.2) (1.1)

Net Operating Revenues - - 34.6 147.5 114.1 140.1 49.1 56.9 7.2 5.2 0.7 3.0

Operating Costs 0.0 0.1 (36.1) (131.0) (90.2) (121.8) (39.1) (66.8) (1.9) (17.0) (17.9) (3.0)

Personnel - - (1.9) (0.6) (2.1) (0.8) (0.0) - 0.1 (0.0) - -

Material - - 0.0 (0.0) (2.4) (0.6) (0.0) (0.0) (0.1) (0.3) - -

Fuel - - - - (38.7) (59.4) (12.1) (19.2) - (4.5) - -

Outsourced Services 0.0 (0.0) (0.0) (0.2) (12.0) (15.9) (1.5) (3.5) (0.2) (1.1) (0.6) -

Depreciation and Amortization - - (0.1) (0.1) (16.6) (16.4) (1.6) (1.6) (1.3) (1.3) - -

Leases and Rentals - - (0.1) (0.1) (1.7) (0.6) (16.4) (26.6) - - 9.0 -

CCC Subsidy - - - - - - - - - - - -

Energy Acquired for Resale - - (33.0) (130.9) - (0.3) (2.0) (0.1) - (9.3) (24.5) (3.0)

Other costs 0.0 0.1 (1.0) 0.7 (16.8) (27.7) (5.5) (15.6) (0.4) (0.5) (1.8) (0.0)

Operating Expenses (4.1) (15.0) (3.6) (16.3) (2.4) (1.2) (1.3) (0.2) (0.2) (0.3) (0.0) (0.0)

Personnel (0.9) (6.4) 0.5 (7.5) (0.1) (0.3) - - (0.0) (0.1) - -

Material (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) - - - - - -

Outsourced Services (3.1) (7.3) (3.9) (7.5) (2.0) (0.7) (1.0) (0.2) (0.2) (0.1) (0.0) -

Depreciation and Amortization (0.0) (0.0) (0.0) (0.0) (0.1) (0.0) - - (0.0) (0.0) - -

Leases and Rentals (0.0) (0.8) (0.0) (0.9) (0.0) (0.0) - - - (0.0) - -

Other Expenses (0.1) (0.4) (0.2) (0.4) (0.1) (0.1) (0.3) (0.1) (0.0) (0.1) (0.0) (0.0)

EBITDA (4.1) (14.9) (4.9) 0.2 38.2 33.5 10.4 (8.4) 6.4 (10.9) (17.2) (0.0)

Net Financial Income 3.1 0.5 4.5 2.2 (42.2) (39.8) (0.2) (2.5) (6.9) (8.2) 0.1 (0.0)

Other Revenues/ Expenses (48.3) (0.1) (93.7) (2.9) (0.4) 0.0 - (0.5) - (0.0) 1.5 -

Equity Income (5.4) 8.8 40.5 (7.7) - - - - - - - -

Earnings Before Taxes (54.9) (5.7) (53.8) (8.3) (21.0) (22.7) 8.6 (13.1) (1.8) (20.3) (15.6) (0.0)

Taxes (IR/CSLL) - - - (5.1) - - (0.0) 1.2 - 7.9 - -

Provision for Deferred Taxes

(IR/CSLL) - - (1.1) - - - (1.1) 3.7 0.6 (1.0) - -

Minority Interests - - - - - - - - - - - -

NET INCOME (54.9) (5.7) (54.9) (13.4) (21.0) (22.7) 7.4 (8.1) (1.2) (13.4) (15.6) (0.0)


29

X. Debt

R$ MM Interest rates Maturity Short Term % Long Term % Total %

Itaqui

7.0 0.1% 1.265.5 25.9% 1.272.5 26.1%

BNDES (DIRECT) TJLP + 2.78% 06/15/26 2.1 0.2% 786.5 61.8% 788.5 16.1%

BNB 10% 12/15/26 3.9 0.3% 198.2 15.6% 202.1 4.1%

BNDES (INDIRECT) IPCA + 12.13% 06/15/26 0.5 0.0% 125.4 9.9% 125.9 2.6%

BNDES (INDIRECT) TJLP + 4.8% 06/15/26 0.6 0.0% 155.4 12.2% 156.0 3.2%

Parnaba I

130.9 2.7% 592.5 12.1% 723.4 14.8%

BRADESCO CDI + 3.50% 08/23/16 28.2 3.9% 2.6 0.4% 30.8 0.6%

BANCO ITA BBA CDI + 3.50% 07/18/16 45.5 6.3% 9.1 1.3% 54.6 1.1%

BNDES (DIRECT) TJLP + 1.88% 06/15/27 36.5 5.0% 375.7 51.9% 412.3 8.4%

BNDES (DIRECT) IPCA + 4.78% 07/15/26 20.7 2.9% 205.1 28.4% 225.8 4.6%

Parnaba II

914.7 18.7% 0.0 0.0% 914.7 18.7%

BANCO ITA BBA CDI + 3.00% 06/15/15 245.5 33.9% 0.0 0.0% 245.5 5.0%

CEF CDI + 3.00% 06/15/15 343.7 37.6% 0.0 0.0% 343.7 7.0%

BNDES / HSBC CDI + 3% p.a. + 1% p.m 06/15/15 325.5 35.6% 0.0 0.0% 325.5 6.7%

ENEVA S/A

0.0 0.0% 1.974.2 40.4% 1.974.2 40.4%

BANCO ITA BBA CDI + 2.75% 05/15/28 0.0 0.0% 571.2 28.9% 571.2 11.7%

BANCO BTG PACTUAL CDI + 2.75% 05/15/28 0.0 0.0% 1040.3 52.7% 1.040.3 21.3%

BANCO CITIBANK CDI + 2.75% 05/15/28 0.0 0.0% 112.4 5.7% 112.4 2.3%

BANCO CITIBANK LIBOR 6M 05/15/28 0.0 0.0% 121.9 6.2% 121.9 2.5%

BANCO CITIBANK NA LIBOR 6M 05/15/28 0.0 0.0% 105.5 5.3% 105.5 2.2%

BANCO CREDIT SUISSE LIBOR 6M 05/15/28 0.0 0.0% 22.9 1.2% 22.9 0.5%

Gross Debt (a)

1,052.6 21.5% 3,832.2 78.5% 4,884.8 100.0%

Cash (b)

418.5

Net Debt (a) - (b)

4,466.3

earnings release - 2q15

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