earnings release - 4q14

4Q14 Earnings Release

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ENEVA Announces Fourth Quarter 2014 Results

Accounting provisions and adjustments and other one-time events hit result’s major lines leading to a

negative EBITDA in the quarter that blurred plants’ operation stability and management efforts on continuous cost optimization

Rio de Janeiro, March 26, 2015 - ENEVA S.A. (BM&FBOVESPA: ENEV3, GDR I: ENEVY) announces today results for

the fourth quarter ended December 31, 2015 (4Q14). The information below is presented on a consolidated basis in

accordance with the accounting practices adopted in Brazil, except where stated otherwise.

4Q14 Highlights

Energy sales: Decreased in 21.8% mainly due to Pecém II deconsolidation as of June 2014, despite the

increase of 132GW contributed by test and commissioning of Parnaíba II;

Net Revenues: Excluding Pecém II deconsolidation and non-recurring events booked in 4Q13, totaling

R$179.7 million, revenues remained in line;

Operating Costs: 15.9% decrease mostly as a result of less fuel consumption by plants, despite booking

of unavailability costs provision due as of 2015;

Operating Expenses: Accounting provisions and adjustments and other one-time events impacted

Holding cost management program advance efforts;

Net Income: Reevaluation of Itaqui and Amapari asset values and accounting provision for the loss in the

sale of Pecém I contributed to post higher losses. Excluding these one-off events, net loss down to

R$380.0 million in the quarter and to R$535.2 million in 2014, a reduction of 43.2%.

MAIN INDICATORS

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenue 368.2 530.3 -30.6% 1,798.1 1,438.8 25.0%

Operating Costs (397.4) (472.3) -15.9% (1,579.3) (1,507.0) 4.8%

Operating Expenses (92.5) (38.4) 140.5% (173.0) (167.3) 3.4%

EBITDA (83.8) 76.3 N. A. 216.3 (88.9) N. A.

Net Income (1,362.0) (280.3) 386.0% (1,517.2) (942.5) 61.0%

Net Debt 5,006.4 5,932.9 -15.6% 5,006.4 5,932.9 -15.6%

Total Generation Energy Sales (GWh) 1,821 2,330 -21.8% 7,885 6,430 22.6%



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4Q14 & Subsequent Events

Final agreement signing to maintain Parnaíba II PPAs

On November 20, 2014, ENEVA signed the final agreement with Aneel – Brazil’s National Electric Energy Agency

to adjust power supply obligations of the Parnaíba II CCGT, which terms and conditions include:

Postponement of the PPAs – Power Purchase Agreements, which will be effective from July 1, 2016 to April

30, 2036;

Generation replacement of Parnaíba I OCGT by Parnaíba II, until June 30, 2016, which procedure allows

power production with optimized use of natural gas resources;

Reduction of Parnaíba II fixed revenue totaling R$334.1 million, to be paid for in installments as of January

2022, as tariff contribution. The reduction amounts to R$13.0 million per year between 2022 and 2025, and

to R$25.6 million per year between 2026 and 2036, adjusted by inflation (IPCA); and

Commitment to close the cycle of the four gas turbines of Parnaíba I OCGT in up to five years from the

signing of the agreement. The energy of such project should be fully sold in the regulated market through an

appropriate auction. The regulator may postpone the indicated period of time whether the auction has not

been conducted.

In case of breach of any of the terms and conditions abovementioned, a 20% increase over the amount of the

reduction in Parnaíba II fixed revenue will apply.

Resume of operation of Pecém I Generation Unit 1

On December 2, 2014, generation unit 1 of Pecém I TPP resumed operation after a shutdown due to the burnout

of the stator of its generator occurred on August 25, 2014. The generator was replaced with the objective of

reducing downtime and to enhance reliability of operations.

The investment to replace the generator will be covered by property damage liability insurance. The outage of

the unit during 87 days will impact the unavailability reimbursement calculation as of 2016 for a period of 60

months, which will be covered by business interruption insurance from the 61st to the 87th day.

Sale of ENEVA’s interest in Pecém I

On December 9, 2014, ENEVA has agreed to sell its interest in Pecém I TPP to EDP - Energias do Brasil S.A. for

R$300 million. This amount stands for the 50% of the share capital of Pecém I held by ENEVA and the future

capitalization of credits originally granted by ENEVA to Pecém I totaling R$409.9 million.

On March 10, 2015, CADE – Brazil’s Antitrust Council approved without restrictions the transaction, despite the

conclusion of the transaction is subject to others conditions precedent, inter alia ENEVA creditors’ approval.

The proceeds with the sale of Pecém I will be used to strength the Company’s cash position.


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Judicial Recovery

On December 9, 2014, ENEVA and its subsidiary ENEVA Participações filed for judicial recovery request, despite

several efforts made by the Management of the Company to implement its financial stabilization.

The request was as a result of (i) the non-revalidation of the agreement to suspend the amortization and

payment of interests of financial transactions entered into by the Company and certain subsidiaries with financial

creditors, due on November 21, 2014; and (ii) the failure to reach an agreement between the Company and

financial institutions to execute a financial stabilization plan of the Company aimed for the capital structure

strengthening and the debt re-profiling of the Company.

On December 16, 2014, the State Justice approved the judicial recovery request and appointed Deloitte Touché

Tohmatsu as the trustee.

On February 12, 2015, the judicial recovery plan was filed envisaging to push the financial debts reorganization

and to balance the capital structure of ENEVA. Such plan shall be implemented by means of:

(i) the full payment of the amount of up to R$250,000 to each of the unsecured creditor, subject to the amount

of its respective credit;

(ii) the global reduction of 40% to 65% of the unsecured credits held by the creditors through the capitalization

of credits and/or the waiver of the unsecured credits and subsequent re-profiling of the remaining balance of

the debts owed to such creditors; and

(iii) the launch of a capital increase in the estimated amount of up to R$3 billion, at the issue price of R$0.15 per

share, to be composed of:

(a) capitalization of the credits held by the unsecured creditors;

(b) contribution of assets by shareholders, creditors and investors; and/or

(c) contribution in cash.


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Economic and Financial Performance

In light of the partial sale of Pecém II, ENEVA’s equity interest in the project was reduced to 50%. As a

consequence, following the accounting standards set forth by the IFRS 11, as of June 1, 2014, Pecém II is

recognized under the equity method.

As a consequence of the signing of Pecém I sale agreement, this asset will be accounted by the equity method

until December 2014.

1. Net Operating Revenues

In 4Q14, ENEVA recorded consolidated Net Operating Revenues of R$368.3 million vs R$530.3 million reported in

4Q13. The decrease in Net Revenues is mostly attributable to the deconsolidation of Pecém II as of June 2014.

Net Revenues in 4Q14 are comprised largely by the revenues from the Regulated Market Power Purchase

Agreements (PPA) of Itaqui and Parnaíba I, which reached, respectively, R$132.7 million and R$233.4 million in

the period. In the quarter, Parnaíba II revenue reflects costs reimbursement by Parnaíba I for generating in

substitution of part of this last thermal plant, as provided for in the operational schematics of the Aneel

agreement to postpone Parnaíba II startup date. Revenues from test and commissioning of Parnaíba II (R$91.0

million) were booked as CAPEX, as provided for in accounting standards.

The breakdown of Operating Revenues for 4Q14 is as follows:

Operating Revenues

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

Gross Revenues 147.7 259.8 11.6 5.3 (11.8) 412.6

Fixed Revenues 82.5 115.8 0.0 5.3 0.0 203.6

Variable Revenues 57.4 138.9 0.0 0.0 0.0 196.3

Adjustments from previous periods 0.0 0.0 0.0 0.0 0.0 0.0

Other Revenues 7.8 5.1 11.6 0.0 (11.8) 12.8

Deductions from Operating Revenues (15.0) (26.3) (1.1) (2.0) 0.0 (44.4)

Net Operating Revenues 132.7 233.4 10.5 3.4 (11.8) 368.3


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2. Operating Costs

Operating Costs

(R$ million) 4Q14 4Q13 % 2014 2013 %

Personnel and Management (19.5) (15.1) 29.4% (54.3) (40.8) 33,2%

Fuel (138.7) (219.3) -36.7% (698.7) (624.0) 12,0%

Outsourced Services (37.3) (51.6) -27.6% (143.9) (96.8) 48,6%

Leases and Rentals (44.7) (53.4) -16.3% (302.8) (164.9) 83,6%

Energy Acquired for Resale (7.9) (39.3) -79.8% (69.1) (274.4) -74,8%

Other Costs (112.2) (38.0) 195.1% (143.3) (162.7) -11,9%

Transmission Charges (11.1) (7.7) 44.4% (42.3) (38.7) 9,2%

Compensation for Downtime (44.1) (35.6) 23.7% 20.4 (149.7) -113,7%

Other (57.0) 5.3 -1177.0% (121.5) 25.7 -572,9%

Total (360.4) (416.8) -13.5% (1,412.0) (1,363.6) 3.5%

Depreciation and Amortization (37.0) (55.5) -33.4% (167.3) (143.4) 16,6%

Total Operating Costs (397.4) (472.3) -15.9% (1,579.3) (1,507.0) 4.8%

Operating Costs totaled R$397.4 million in 4Q14, mainly impacted by a decrease of R$80.6 Million in fuel costs

relative to the same period of the preceding year, due mainly to the deconsolidation of Pecém II as of June 2014

and also the reduction of fuel consumption by Parnaíba I and Amapari, attributed respectively to gas resources

optimization procedure and suspension of operations for PPA renegotiation. Fuel cost of R$138.7 million recorded

in the quarter is divided into R$61.4 million incurred by Itaqui, R$77.1 million incurred by Parnaíba I and R$0.2

million by Amapari.

Deconsolidation of Pecém II also hit the Outsourced Services account, which reached R$37.3 million,

representing a reduction of R$14.3 million when compared to 4Q14. Excluding this effect, the referred cost

remained in line.

The Leases and Rentals account, which totaled R$55.7 million in the quarter, is comprised mainly by lease costs

incurred by Parnaíba I, according to its gas supply agreement (R$44.0 million). Additionally, Parnaíba I recorded

R$11.7 million in Leases and Rentals that were generation and operation costs of Parnaíba II steam turbine and

related transmission charges transferred to Parnaíba I, based on the operational schematics provided for in the

Aneel agreement to postpone Parnaíba II startup date.

The Other Costs account, which totaled R$96.5 million in 4Q14, is mainly composed by transmission charges

(TUST) and compensation for downtime of the power plants (unavailability charges, also known as “ADOMP”).

Also, the Other Costs account was impacted by a write-down of credits held by Amapari which totaled R$37.1

million.

In 4Q14, Itaqui and Parnaíba I had to reimburse DisCos for the energy not delivered calculated 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). The energy exposure for 2014 of such plants represents -5.63 average MW/month and

+0.53 average MW/month, respectively. In August 2014, this parameter was recalculated for 2015 amounting to

-19.39 average MW/month for Itaqui and +0.84 average MW/month for Parnaíba I. In the quarter, unavailability

costs totaled R$44.1 million for Itaqui (R$38.4 million was an accounting provision of unavailability due as of


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2015) and R$0.0 for Parnaíba I, which will be paid in 60 monthly instalments as of January 2015 and are subject

to annual reevaluation, as provided for in the 60-month rolling average calculation methodology.

Operational Highlights: During the period, Itaqui stopped for 18 days in October 2014 for inspection and

maintenance according to operation plan and thus lowering availability records. Net generation reached 522GWh.

In 4Q14, Parnaíba I’s availability was compromised by occasional power reduction in order to allow Parnaíba II

test and commissioning procedures. Net generation reached 844GWh.

3. Operating Expenses

In the quarter, Operating Expenses, excluding Depreciation & Amortization, amounted to R$91.6 million, a

145.7% increase when compared to 4Q13. In the same period, the Holding company posted Operating Expenses,

excluding Depreciation and Amortization, of R$84.1 million, compared to the R$35.6 million recorded in 4Q13.

During the period, the IPCA inflation index rose by 6.41%.

Operating Expenses Consolidated

(R$ million) 4Q14 4Q13 % 2014 2013 %

Personnel (54.3) (18.5) 194.2% (81.5) (79.8) 2.1%

Outsourced Services (24.0) (15.5) 54.2% (65.3) (64.8) 0.7%

Leases and Rentals (2.1) (1.2) 74.9% (7.4) (7.2) 2.7%

Other Expenses (11.3) (2.1) 436.5% (15.6) (12.3) 26.6%

Total (91.6) (37.3) 145.7% (169.8) (164.1) 3.5%

Depreciation and Amortization (0.8) (1.1) -27.8% (3.2) (3.1) 2.8%

Total Operating Expenses (92.5) (38.4) 140.5% (173.0) (167.3) 3.4%

99% 98% 94% 86%

1Q14 2Q14 3Q14 4Q14

Parnaíba I - Energy Availability

75% 77% 87%

72%

1Q14 2Q14 3Q14 4Q14

Itaqui - Energy Availability


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Operating Expenses Holding

(R$ million) 4Q14 4Q13 % 2014 2013 %

Personnel (51.5) (22.3) 131.1% (74.3) (67.6) 9.9%

Stock Options 3.4 (9.2) -136.6% - 0.2 -100.0%

Outsourced Services (20.4) (9.1) 123.8% (49.4) (40.4) 22.3%

Leases and Rentals (2.0) (1.5) 33.9% (6.9) (5.5) 24.8%

Other Expenses (10.2) (2.7) 273.6% (12.8) (7.9) 61.5%

Total (84.1) (35.6) 136.1% (143.3) (121.4) 18.0%

Depreciation and Amortization (0.6) (0.9) -30.2% (2.4) (2.3) 3.3%

Total Operating Expenses (84.8) (36.6) 131.9% (145.7) (123.7) 17.8%

The main changes are as follows:

Personnel: Personnel expenses totaled R$54.3 million in 4Q14, compared to R$18.5 million reported in

the same period of the preceding year. The increase in personnel expenses is largely a result of:

Shared expenses from previous periods with subsidiaries provision amounting to R$27.8 million,

which will be transferred during the year of 2015 (+R$29.2 million);

Higher provision for employee bonus as compared to 4Q13 (+R$10.0 million);

Organizational redesign and streamlining and also reduction of labor costs associated with

dismissals (-R$5.7 million);

Accounting provision reduction for stock option-related expenses resulting from a decrease in

both the number of options outstanding and the share price since 4Q13 (-R$4.2 million);

Outsourced services: Expenses with outsourced services in 4Q14 totaled R$24.0 million, up R$8.4

million in relation to 4Q13. The highlights are:

Increase in IT expenses with infrastructure installation and contract termination with former IT

provider (+R$8.5 million);

Increase in expenses with technical, financial and legal consulting services in the Holding

company (+R$3.3 million);

Accounting provision in subsidiaries related to future shared expenses with holding due to IT

provider termination (-R$6.5 million).

Others: Increase mostly related to shared expenses from previous periods with subsidiaries amounting

to R$9.8 million, which will be transferred during the year of 2015 (+R$9.8 million).

4. EBITDA

In 4Q14, ENEVA reported a negative EBITDA of R$83.8 million, mainly comprised by:

Increase in Holding’s Operating Expenses, mainly due to accounting provisions and adjustments;

Higher Operating Costs, reflecting accounting provision for unavailability costs of power plants due as of

2015 and write-down of credits by subsidiaries.


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Adjusted EBITDA sums -R$1.9 million and is composed by excluding non-recurring events, such as

accounting provisions for unavailability costs of Itaqui for 2015 onwards, stock options, shared services

with subsidiaries and IT contract termination fee.

5. Net Financial Result

Financial Result

(R$ million) 4Q14 4Q13 % 2014 2013 %

Financial Income 22.1 36.1 -38.8% 131.7 88.5 48.8%

Monetary variation 0.6 2.3 -75.9% 27.4 15.3 78.8%

Revenues from financial investments 19.3 36.8 -47.4% 75.3 63.7 18.2%

Marking-to-market of derivatives 0.8 (6.3) -113.3% 17.0 1.2 1370.1%

Settlement of derivatives - - - - 1.6 -100.0%

Present value adjust. (debentures) - (0.1) -100.0% (0.0) (0.5) -100.0%

Other 1.3 3.4 -60.5% 12.0 7.2 66.7%

Financial Expenses (175.6) (202.7) -13.4% (641.8) (594.6) 7.9%

Monetary variation (10.7) (9.0) 18.9% (40.9) (33.7) 21.3%

Interest expenses (114.5) (133.1) -14.0% (516.5) (364.8) 41.6%

Settlement of derivatives - - - - 117.7 -100.0%

Marking-to-market of derivatives - (1.8) -100.0% (4.1) (121.1) -96.6%

Costs and Interest on Debentures (0.0) (0.3) -89.7% (0.5) (0.8) -36.3%

Other (50.5) (58.6) -13.8% (79.7) (191.9) -58.5%

Net Financial Result (153.6) (166.7) -7.9% (510.1) (506.1) 0.8%

In 4Q14, ENEVA recorded net financial expenses of R$153.6 million, compared to net expenses of R$166.7

million in 4Q13, impacted mainly by higher losses on monetary variation on derivatives, due to differential

exchange rates on hedging swaps. Despite Pecém II deconsolidation, higher interest expenses are related mostly

to the growth in holding indebtedness motivated by increased cash needs in the subsidiaries resulting mainly

from unavailability penalties. The net financial result was also impacted by the decrease in Other financial

expense, resulting from higher revenues by holding of intercompany loans.

Due to the Judicial Recovery process, as of December 9, 2014, all credit facilities interest payments contracted

by ENEVA, were suspended and since this date have not been accounted as financial expenses.


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6. Equity Income

The company reported a negative equity income of R$620.1 million, mainly impacted by a provision recorded in

Pecém I of unavailability costs due as of 2015.

The following analyses consider 100% of the projects. On December 31, 2014, ENEVA held an interest of 50.0%

in Pecém I, Pecém II and ENEVA Participações, 52.5% in both Parnaíba III and Parnaíba IV (30% as a direct

investment and 22.5% through ENEVA Participações).

6.1. Pecém I

INCOME STATEMENT - Pecém I

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenues 303.7 332.7 -8.7% 1,153.7 984.4 17.2%

Operating Costs (609.7) (305.7) 99.5% (1,225.8) (1,187.2) 3.3%

Operating Expenses (7.0) (5.8) 21.0% (18.7) (19.0) -1.5%

Net Financial Result (80.2) (59.2) 35.5% (281.4) (206.0) 36.6%

Earnings Before Taxes (393.2) (38.0) 934.3% (372.2) (427.8) -13.0%

Taxes Payable and Deferred 137.1 12.9 960.5% 135.9 145.4 -6.5%

NET INCOME (256.1) (25.1) 920.8% (236.3) (282.3) -16.3%

EBITDA (279.4) 61.7 -553% 46.0 (105.5) -143.6%

Net revenues for Pecém I in the quarter amounted to R$303.7 million, comprised of:

Fixed revenues amounting to R$157.8 million;

Variable revenues amounting to R$108.5 million;

Revenues referring to power trades resulting from the annual revision of the plant’s firm energy,

provided for in the PPA, totaling R$74.7 million;

Taxes on revenues amounting to R$37.2 million.

Operating Costs, excluding Depreciation and Amortization, totaled R$576.2 million, a 117.2% increase compared

to the same period of last year, mainly due to the effect of an accounting provision amounting to +R$278.2

million from unavailability costs due as of 2015 and higher fuel costs (+R$43.8 million) as a reflect of power

generation increase.

Fuel costs in the quarter reached R$114.6 million, split between coal (R$106.1 million) and diesel oil and other

(R$8.5 million) costs.

Operating Costs in 4Q14 were also inflated by costs associated with power trades resulting from the annual

revision of the plant’s firm energy, provided for in the PPAs, amounting to R$69.5 million. Every year, the ONS

resets the plant’s firm energy based on the performance of the past 60 months. If the average availability rate

falls below the value originally declared, the plant’s firm energy is reduced and the difference has to be covered


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by a free market collateral contract. The plant can then sell in the spot market the energy associated with the

collateral contract, maintaining only the collateral component of the contract. In 4Q14, given high spot prices,

gross revenues resulting from this sale amounted to R$74.7 million.

Other costs totaled R$339.5 million in 4Q14. This account is composed mainly by transmission charges (R$15.2

million) and unavailability costs that totaled R$323.1MM, including R$278.2 million as an accounting provision of

unavailability due as of 2015. The energy exposure related to unavailability for 2014 represents -48.2 average

MW/month. In August 2014, this parameter was recalculated for 2015 and increased to -78.5 average

MW/month. Unavailability costs will be paid in 60 monthly instalments as of January 2015 and are subject to

annual reevaluation, as provided for in the 60-month rolling average calculation methodology.

In 4Q14, Pecém I recorded a negative EBITDA of R$279.4 million. Net financial expenses amounted to R$80.2

million, compared to R$59.2 million in 4Q13, impacted mainly higher losses on monetary variation, due to

differential exchange rates on hedging swaps.

Pecém I reported a net loss of R$256.1 million in 4Q14.

Operational Highlights: In 4Q14, Generation Unit 01 of the plant has being repaired and stopped for 50 days,

impacting total availability for the period. Despite this event, high availability standards were achieved during the

quarter. Net generation reached 1,034GWh.

6.2. Pecém II

INCOME STATEMENT - Pecém II

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenues 153.2 146.6 4.5% 567.1 179.1 216.6%

Operating Costs (112.6) (113.8) 4.5% (440.2) (164.1) 168.3%

Operating Expenses (2.2) 1.2 -278.7% (6.8) (6.4) 6.7%


Other Revenues/Expenses 1.9 - - 1.1 0.0 92790.8%

Earnings Before Taxes 0.3 (8.4) -103.3% (33.4) (69.9) -52.2%

Taxes Payable and Deferred - 2.7 -100.0% 0.4 23.5 -98.5%

NET INCOME 0.3 (5.7) -104.8% (33.0) (46.3) -28.7%

EBITDA 54.9 55.4 -1.0% 180.4 30.2 497.6%

83% 77%

70% 71% 80% 71%

50% 43%

86% 83% 86% 97%

1Q14 2Q14 3Q14 4Q14

Pecém I - Energy Availability

Pecém I UG1 UG2


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On October 18, 2013, Pecém II received authorization from Aneel to start commercial operations and to

supplying 365MW of energy under the terms of the PPA secured in the A-5 energy auction in 2008.

Net revenues for Pecém II in the quarter amounted to R$153.2 million, comprised of:



Other revenues amounting to R$15.3 million;


Operating Costs reached R$96.2 million in the quarter, excluding Depreciation and Amortization, comprised

mainly of:

Fuel costs totaled R$69.1 million, split between coal (R$67.1 million) and diesel oil and other costs

(R$2.0 million);

Transmission charges (R$6.0 million); and

Unavailability costs (-R$0.6MM), as a reflect of an accounting adjustment from previous periods. Pecém

II has no energy exposure related to unavailability neither for 2014 nor to 2015, due to its high

operational efficiency.

In 4Q14, Pecém II recorded a positive EBITDA of R$54.9 million.

Net financial expenses amounted to R$40.0 million, mainly impacted by interest expenses due to interest on

long-term financing no longer being capitalized with the start-up of operations of the plant.

Pecém II reported a net profit of R$0.3 million in 4Q14.

Operational Highlights: During the period, the plant recorded high availability figures, especially in November

2014 when hit 100%, thus consolidating itself as a true benchmark of the ENEVA’s fleet. Net generation reached

736GWh.

97% 96% 77%

99%

1Q14 2Q14 3Q14 4Q14

Pecém II - Energy Availability


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6.3. ENEVA Participações S.A

6.3.1. Holding Operating Expenses

Operating Expenses Holding ENEVA Participações S.A.

(R$ million) 4Q14 4Q13 % 2014 2013 %

Personnel (4.9) 22.2 -122.0% (17.9) (27.2) -34.1%

Outsourced Services (5.2) 5.2 -199.2% (10.2) (6.3) 60.0%

Leases and Rentals (1.1) 1.1 -202.5% (2.0) (3.2) -39.2%

Other Expenses (0.4) 10.0 -103.9% (0.9) (1.2) -23.8%

Total (11.6) 38.5 -130.0% (31.0) (38.0) -18.5%

Depreciation and Amortization (0.0) (0.0) 46.8% (0.1) (0.0) 468.5%

Total Operating Expenses (11.6) 38.5 -130.0% (31.0) (38.0) -18.3%

In 4Q14, Operating Expenses, excluding Depreciation and Amortization, amounted to +R$27.0 million, a

decrease of R$37.4 million compared to 4Q13. The main changes are summarized as follows:

Higher provision for employee bonus as compared to 4Q13 (+R$8.0 million);

Booking of shared expenses from previous periods with holding and subsidiaries (-R$39.1 million);

Decrease in expenses of technical consultancy services, mainly the ones provided by E.ON (-R$3.5

million)

Accounting provision reduction for stock option-related expenses resulting from a decrease in both the

number of options outstanding and the share price since 4Q13 (-R$2.9 million).

6.3.2. Parnaíba III

INCOME STATEMENT - Parnaíba III

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenues 55.9 89.4 -37.5% 244.9 198.3 23.5%

Operating Costs (44.2) (58.5) -24.5% (239.4) (221.9) 7.9%


Net Financial Result (3.1) (1.7) 82.6% (10.7) (4.8) 122.5%

Other Revenues/Expenses (17.7) - - (8.0) - -

Earnings Before Taxes (9.8) 29.0 -133.8% (15.3) (28.9) -47.1%

Taxes Payable and Deferred 3.2 (9.9) -132.9% 5.1 9.8 -48.0%

NET INCOME (6.5) 19.1 (1.3) (10.2) (19.1) (0.5)

EBITDA 12.7 32.0 -60.3% 9.8 (22.8) -143.0%

On October 22, 2013, Parnaíba III received authorization from Aneel to start the commercial operations of its

first generation unit, with 169MW of installed capacity. On February 17, 2014, the plant started the commercial

operations of its second generation unit, with 7MW of installed capacity, complying with the total capacity

contracted under the terms of the Regulated Market power purchase agreement secured in the 2008 A-5 energy


13

auction (176 MW).

Net revenues in the quarter amounted to R$55.9 million, comprised of:




Operating Costs reached R$44.6 million in the quarter, excluding Depreciation and Amortization, comprised

mainly of:

Fuel - natural gas (R$15.4 million);

Lease costs, according to the gas supply agreement (R$21.7 million)

Unavailability costs were not recorded in the period. Parnaíba III has no energy exposure related to

unavailability neither for 2014 nor to 2015, due to its high operational efficiency.

In 4Q14, Parnaíba III recorded a positive EBITDA of R$12.7 million.

Net financial expenses amounted to R$3.1 million, mainly impacted by interest expenses.

Parnaíba III reported a net loss of R$6.5 million in 3Q14.

Operational Highlights: In 4Q14, Parnaíba III’s availability was compromised by occasional power reduction in

order to allow Parnaíba II test and commissioning procedures and also by maintenance on gas facilities that

supply Parnaíba Complex. Net generation reached 226GWh.

6.3.3. Parnaíba IV

Parnaíba IV (56MW) received authorization from Aneel to start commercial operations as a power self-producer

on December 12, 2013. The plant, a partnership between ENEVA, ENEVA Participações and Petra Energia S.A.,

signed a contract in the free market with Kinross, for a five-year period, to supply 20 MWavg from December,

2013 until May, 2014 and 46MWavg from June, 2014 until December, 2018. The remaining power generation of

the plant is sold in the free market.

As of July, 2014, the structure to supply energy by Parnaíba IV has been comprised by two entities, Parnaíba IV

itself and Parnaíba Comercializadora, in which different revenues and costs of the business are accounted.

99% 80% 82%

67%

1Q14 2Q14 3Q14 4Q14

Parnaíba III - Energy Availability


14

INCOME STATEMENT - Parnaíba IV

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenues 7.2 5.8 23.7% 50.0 5.8 758.7%

Operating Costs (2.2) (3.2) - (32.5) (3.2) 903.4%

Operating Expenses (0.2) (0.3) -26.9% (1.5) (0.6) 142.3%

Net Financial Result (5.7) (1.1) 411.6% (21.3) 3.4 -723.1%

Other Revenues/Expenses 0.4 - - 0.2 - -

Earnings Before Taxes (0.5) 1.2 -140.4% (5.1) 5.4 -195.4%

Taxes Payable and Deferred 0.1 (0.4) -137.7% 2.8 (1.8) -254.6%

NET INCOME (0.3) 0.8 -141.8% (2.3) 3.6 -165.5%

EBITDA 6.1 2.6 133.2% 21.0 2.3 814.3%

INCOME STATEMENT - Parnaíba Comercializadora

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenues 1.6 - - 7.0 - -

Operating Costs (0.7) - - (19.9) - -

Operating Expenses (0.0) - - (0.0) - -

Net Financial Result (0.0) - - (0.1) - -

Other Revenues/Expenses 0.2 - - 0.2 - -

Earnings Before Taxes 1.2 - - (12.8) - -

Taxes Payable and Deferred - - - - - -

NET INCOME 1.2 - - (12.8) - -

EBITDA 1.0 - - (12.9) - -

Net revenues in the quarter amounted to R$7.2 million in Parnaíba IV, mainly comprised of the plant lease

contract to Parnaíba Comercializadora amounting to R$7.9 million. In the same period of the year, Parnaíba

Comercializadora revenues totaled R$1.6 million from the power sale in the market amounting to R$1.8 million.

Excluding Depreciation & Amortization, Operating Costs of Parnaíba IV reached R$0.9 million in 4Q14, mainly

composed of Personnel and Insurance costs that sum R$0.6 million; Parnaíba Comercializadora costs totaled

R$0.7 million, comprised mainly by:

Natural gas (R$6.2 million), booked in the entry “Energy acquired for resale” due to trading purpose of

the entity;

Plant lease contract (+R$7.2 million), reflecting the contribution of Kinross for the power supply of

46MWavg, according to contract signed with this party, amounting to +R$14.4 million;

Transmission charges (R$0.7 million).

Net financial expenses in Parnaíba IV reached R$5.7 million, mainly impacted by interest expenses on

intercompany loans.


15

Operational Highlights: During the period, one of Parnaíba IV engines stopped for inspection and maintenance

according to operation plan and thus lowering availability records. Net generation reached 108GWh.

7. Net Income

In 4Q14, ENEVA reported a net loss of R$1,362.0 million, impacted mainly by the reevaluation of Itaqui and

Amapari asset values (R$358.8 million and R$62.5 million, respectively) and an accounting provision for the loss

in the sale of Pecém I (R$560.7 million). Excluding these one-off events, net loss in the quarter down to R$380.0

million.

INCOME STATEMENT

(R$ million) 4Q14 4Q13 % 2014 2013 %

Net Operating Revenues 368.2 530.3 -30.6% 1,798.1 1,438.8 25.0%

Operating Costs (397.4) (472.3) -15.9% (1,579.3) (1,507.0) 4.8%



Equity Income (140.6) (1.7) 8392.0% (170.7) (153.0) 11.5%

Other Revenues/Expenses (999.3) (34.5) 2792.7% (919.5) (38.7) 2276.9%

Earnings Before Taxes (1,415.1) (183.3) 672.2% (1,544.4) (933.3) 66.6%

Taxes Payable and Deferred 10.0 (97.9) -110.2% (2.5) (11.2) -77.3%

Minority Interest 43.0 0.9 4721.1% 39.8 2.0 1923.6%

NET INCOME (1,362.0) (280.3) 386.0% (1,517.2) (942.5) 61.0%

EBITDA (83.8) 76.3 -209.9% 216.3 (88.9) -343.2%

8. Debt

As of December 31, 2014, consolidated gross debt amounted to R$5,163.7 million, an increase of 2.3% in

relation to the amount recorded on September 30, 2014. When compared to December 31, 2013, consolidated

94%

63%

91% 91%

1Q14 2Q14 3Q14 4Q14

Parnaíba IV - Energy Availability


16

gross debt decrease 16.9% or R$ 1.046.8 million. The variation is mainly attributed to Pecém II deconsolidation

as of June 2014.

Consolidated Debt Profile (R$ million)

The balance of short-term debt at the end of December, 2014 was R$3,289.2 million, or R$136.6 million higher

than the amount recorded on September 31, 2014.

R$1,090.0 million out of the total balance of short-term debt are allocated in the projects (vs. R$1,062.7 million

on September 30, 2014), as follows:

R$243,6 million refer to the current portion of the short-term debts of Itaqui and Parnaíba I;

R$846.4 million refer to bridge loans to Parnaíba II.

The remaining balance of short-term debt, amounting to R$2,199.1 million, is allocated in the Holding company

(vs. R$2,089.9 million on September 30, 2014).

At the end of December, 2014, the average cost of debt was 10.94% p.a. and the average maturity at 3.3 years.

Debt Maturity Profile* (R$ million)

*Values include principal + capitalized interest + charges

2.382 46%

2.782 54%

Working Capital Project Finance

3.289 64%

1.875 36%

Short Term Long Term

157,3

1.090,0

149,2 153,3 155,0

1.234,2

2.199,1

116,3 66,4

Cash & Cash

Equivalents

2015 2016 2017 2018 From 2019 on

Project Finance Working Capital


17

Debt, net of Cash position and Charges on debt, in 4Q14 amounted to R$5,006.4 million, 3.4% higher than the

value reported in 3Q14.

Consolidated Cash and Cash Equivalents (R$ million)

*DSRA = Debt Service Reserve Account

Consolidated Cash and Cash Equivalents totaled R$156.5 million at the end of December, 2014, a decrease of

R$50.8 million as compared to the balance in September 30, 2014.

9. Capital Expenditures (Accounting view)

During 4Q14, ENEVA’s consolidated Capital Expenditures totalized a negative R$453.0 million, mainly explained

by the review of Itaqui Fixes Asset value totaling R$358.8 million. Capitalized interest amounted to R$15.7

million and depreciation & amortization to R$35.3 million.

Consolidated Assets (R$ million)

4Q14 4Q13

Capex Interest

Capitalized Depreciation & Amortization

Capex Interest


Itaqui -359.8 0.0 -19.6 40.4 0.0 -22.4

Parnaíba I -51.8 0.0 -11.9

0.0 -22.4 18.0

Parnaíba II -41.4 15.7 -3.9 -22.4 18.0 0.0

207,3

474,5 -452.7

-45.4 9,1 -64.7 29,1

157,3

Cash and Cash

Equivalents

(3Q14)

Revenues Operating Costs

and Expenses

CAPEX Intercompany

Loan

Debt Service DSRA/Others Cash and Cash

Equivalents

(4Q14)


18

Equity Consolidated Assets – Adjusted by ENEVA’s interest (R$ million)

4Q14 4T13

Capex Interest


Capex Interest


Pecém I 58.8 0.0 -16.8

15.8 0.0 -20.2

Pecém II 11.2 0.0 -16.5 51.1 0.6 -21.4

10. Capital Markets

Stock Price Performance

ENEVA’s capital on December 31, 2014 was constituted by 840,106,107 ordinary shares, of which 37.1% were

free float.

ENEVA’s share price at the end of the fourth quarter of 2014 was R$0.40, compared to R$0.70 on September 30,

2014, representing a drop of 42.9% in the quarter. In the same period, the Bovespa Index (Ibovespa) decreased

7.6% and the Electrical Utilities Sector Index (IEE) fell 1.6%. In the last 12 months, ENEVA’s shares fell 86.7%,

Ibovespa decrease 2.9% and IEE rose by3.52%. The Company’s market capitalization at the end of the quarter

reached R$336.0 million. Average daily traded volume in 4Q14 was R$4.5 million.

0

20

40

60

80

100

120

140

30/0

9/1

4

07/1

0/1

4

14/1

0/1

4

21/1

0/1

4

28/1

0/1

4

04/1

1/1

4

11/1

1/1

4

18/1

1/1

4

25/1

1/1

4

02/1

2/1

4

09/1

2/1

4

16/1

2/1

4

23/1

2/1

4

30/1

2/1

4

Capital Markets Performance - 4Q14 09/30/2014 = 100

IBOV ENEV3 IEEX

-42.9%

-7.6%

-1.6%

R$/shre

09/30/2014 0.70

12/30/2014 0.40

0

20

40

60

80

100

120

140

30/1

2/1

3

30/0

1/1

4

28/0

2/1

4

31/0

3/1

4

30/0

4/1

4

31/0

5/1

4

30/0

6/1

4

31/0

7/1

4

31/0

8/1

4

30/0

9/1

4

31/1

0/1

4

30/1

1/1

4

31/1

2/1

4

Capital Markets Performance - 12 mo 12/30/2013 = 100

IBOV ENEV3 IEEX

R$/share

12/30/2013 3.00

12/30/2014 0.40 -86.7%

-2.9%

3.5%


19

Free Float Profile

(as of December 30, 2014)

18.2%

81.8%

Individuals Institutional

95,6%

4,4%

Brazil International


20

4Q14 Conference Call

Friday, March 27, 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/4q14.htm Webcast in Portuguese: www.ccall.com.br/eneva/4t14.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


21

ANNEX

I. Balance Sheet – Assets (Holding and Consolidated)

Holding Consolidated

(R$ million) Dec-14 Dec-13 Dec-14 Dec-13

Current Assets 386.5 141.2 944.7 747.8

Cash and Cash Equivalents 72.5 110.2 157.3 277.6

Accounts Receivable 14.0 26.9 346.1 347.0

Gain on Derivatives - 4.2 - 4.2

Subsidies CCC - - - 30.8

Assets Disposed to Sale 300.0 - 300.0 -

Inventories - - 99.2 78.4

Escrow Accounts 0.0 0.0 0.0 0.0

Prepaid Expenses 0.0 - 42.1 9.8

Non-current Assets

Long-term Asset 1,101.2 1,464.4 742.7 966.7

Accounts Receivable - Related Parties 831.3 1,256.9 406.8 542.6

AFAC 248.0 206.7 26.3 0.2

Escrow Accounts - - 62.1 118.6

Deferred Taxes (IR/CSLL) - - 219.7 302.3

Prepaid Expenses - R&D 21.9 0.8 27.9 3.0

Fixed Assets 2,242.3 3,146.3 5,357.0 7,974.7

Equity Interest 2,228.1 3,131.0 733.9 941.9

Property, Plant and Equipment 11.2 12.6 4,423.5 6,819.5

Intangible Assets 2.9 2.7 199.6 213.4

TOTAL ASSETS 3,730.0 4,752.0 7,044.4 9,689.2


22

II. Balance Sheet – Liabilities (Holding and Consolidated)


(R$ million) Dec-14 Dec-13 Dec-14 Dec-13

Current Liabilities 2,229.1 1,580.0 3,619.9 2,978.9

Accounts Payable 11.7 3.5 149.8 331.2

Personnel 6.7 8.4 14.9 16.8

Charges on Debts 214.4 15.7 266.7 85.3

Taxes Payable 1.6 0.7 27.1 45.9

Short Term Debt 1,984.7 1,546.5 3,022.5 2,322.8

Losses on Derivatives - - - -

Other 9.8 5.2 138.9 176.8

Non-current Liabilities - - - -

Long term Liabilities 357.9 703.2 2,206.8 4,136.5

Accounts Payable - - - -

Deferred Taxes (IR/CSLL) 9.8 - (41.4) (51.4)

Long-Term Debt 173.0 655.4 1,915.9 3,853.8

Intercompany Loan / Payable 171.6 34.5 320.9 307.7

Provision for Losses 3.5 8.1 0.4 11.6

Others - 5.2 11.0 14.8

Minority Interests - - 82.5 123.6

Shareholder's Equity 1,153.0 2,468.7 1,145.3 2,450.2

Common Stock 4,707.1 4,532.3 4,707.1 4,532.3

Capital Reserve - - - -

Reserve Valuation Adjustments (36.9) (44.0) (36.9) (44.0)

Profit Reserve 350.8 350.5 350.8 350.5

Advance for Future Capital Increase - AFAC - - - -

Translation Adjustments 0.0 (9.2) 0.0 (9.2)

Accumulated Profit or Losses (2,360.8) (1,418.3) (2,368.6) (1,436.8)

Net Earnings (1,517.2) (942.5) (1,517.2) (942.5)

TOTAL LIABILITIES 3,730.0 4,752.0 7,044.4 9,689.2


23

III. Income Statement (Holding and Consolidated)


(R$ million) 4Q14 4Q13

4Q14 4Q13

Gross Operating Revenues - -

412.6 590.1

Energy Supply - -

412.6 590.1

Energy Commercialization - -

(0.0) -

Deductions from Gross Revenue - -

(44.4) (59.8)

Net Operating Revenues - -

368.2 530.3

Operating Costs - -

(397.4) (472.3)

Personnel - -

(19.5) (15.1)

Material - -

(9.6) (8.9)

Fuel - -

(138.7) (219.3)

Outsourced Services - -

(37.3) (51.6)

Depreciation and Amortization - -

(37.0) (55.5)

Leases and Rentals - -

(44.7) (53.4)

CCC Subsidy - -

(0.8) 27.6

Energy Acquired for Resale - -

(7.9) (39.3)

Other costs - -

(101.7) (56.8)

Operating Expenses (84.8) (36.6)

(92.5) (38.4)

Personnel (51.5) (22.3)

(54.3) (18.5)

Material (0.1) (0.1)

(0.1) (0.0)

Outsourced Services (20.4) (9.1)

(24.0) (15.5)

Depreciation and Amortization (0.6) (0.9)

(0.8) (1.1)

Leases and Rentals (2.0) (1.5)

(2.1) (1.2)

Other Expenses (10.2) (2.7)

(11.2) (2.1)

EBITDA (84.1) (35.6)

(83.8) 76.3

Net Financial Income

(79.2) (68.5)

(153.6) (166.7)

Other Revenues/ Expenses

(578.0) (9.9)

(999.3) (34.5)

Equity Income

(620.1) (50.9)

(140.6) (1.7)

Earnings Before Taxes

(1,362.0) (165.9)

(1,415.1) (183.3)

CSLL/IR

- -

(2.2) 2.1

Deferred Taxes Provision (IR/CSLL)

- (114.4)

12.2 (100.0)

Minority Interest

- -

43.0 0.9

NET INCOME (1,362.0) (280.3)

(1,362.0) (280.3)


24

IV. Project Balance Sheet – Assets (Consolidated Projects)

Itaqui Amapari Parnaíba I Parnaíba II

(R$ million) Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13

Current Assets 213.0 153.1 25.6 62.1 206.4 158.3 113.2 62.3

Cash and Cash Equivalents 29.1 27.3 16.7 9.8 38.1 32.0 0.9 57.7

Accounts Receivable 92.3 91.8 1.3 10.1 155.8 117.9 82.7 1.4

Gain on Derivatives - - - - - - - -

Subsidies CCC - - - 30.8 - - - -

Assets Disposed to Sale - - - - - - - -

Inventories 80.4 31.5 7.6 11.3 7.5 4.2 3.7 0.1

Escrow Accounts - - - - - - - -

Prepaid Expenses 11.1 2.5 0.1 0.1 5.0 4.1 25.8 3.1

Non-current Assets - - - - - - - -

Long-term Asset 238.3 261.9 0.4 1.9 40.7 50.7 27.9 24.1

Accounts Receivable - Related Parties 4.5 4.4 0.0 - 2.7 2.4 12.3 14.9

AFAC - - - - - - - -

Escrow Accounts 37.4 64.8 - 0.1 24.6 34.0 - -

Deferred Taxes (IR/CSLL) 192.1 192.1 - 1.8 12.0 14.0 15.6 8.7

Prepaid Expenses - R&D 4.2 0.6 0.4 - 1.4 0.3 - 0.5

Fixed Assets 2,215.7 2,662.8 (0.0) 67.4 1,138.4 1,214.0 1,239.7 1,139.8

Equity Interest - - - - - - - -

Property, Plant and Equipment 2,205.5 2,651.1 (0.1) 64.5 971.7 1,035.1 1,234.5 1,134.6

Intangible Assets 10.3 11.1 0.1 0.2 166.6 178.9 5.2 5.2

TOTAL ASSETS 2,666.9 3,077.8 26.1 131.3 1,385.4 1,423.0 1,380.8 1,226.2


25

V. Project Balance Sheet – Liabilities (Consolidated Projects)


(R$ million) Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13

Current Liabilities 256.7 285.5 28.2 31.6 199.3 265.8 906.6 594.8

Accounts Payable 46.8 126.2 24.7 29.5 30.0 85.8 36.6 57.9

Personnel 3.4 3.0 0.5 0.5 2.3 1.7 2.0 2.3

Charges on Debts 8.9 9.2 - - 4.7 12.1 38.7 0.4

Taxes Payable 13.0 14.4 1.1 0.1 6.6 9.4 4.8 6.7

Short Term Debt 92.3 90.5 - - 137.7 137.6 807.7 480.0

Losses on Derivatives - - - - - - - -

Other 92.3 42.3 1.9 1.5 18.0 19.2 16.8 47.4

Non-current Liabilities - - - - - - - -

Long term Liabilities 1,541.1 1,724.7 1.2 0.1 715.4 769.0 11.9 303.3

Accounts Payable - - - - - - - -

Deferred Taxes (IR/CSLL) (14.1) (15.2) - - (37.1) (22.9) - (3.4)

Long-Term Debt 1,127.8 1,213.5 - - 615.1 680.5 - 280.7

Intercompany Loan / Payable 426.7 526.4 - 0.1 130.3 107.2 11.9 26.0

Provision for Losses - - - - - - - -

Others 0.6 - 1.2 - 7.1 4.2 - -

Minority Interests - - - - - - - -

Shareholder's Equity 869.1 1,067.6 (3.2) 99.6 470.7 388.2 462.3 328.2

Common Stock 1,757.4 1,458.7 84.8 84.8 263.6 263.6 445.7 345.7

Capital Reserve - - 6.5 6.5 - - - -

Reserve Valuation Adjustments - - - - - - - -

Profit Reserve 0.1 - 12.0 12.0 0.0 - 0.7 -

Advance for Future Capital Increase -

AFAC 10.0 87.7 - - 188.1 141.6 47.3 -

Translation Adjustments - - - - - - - -

Accumulated Profit or Losses (478.8) (228.0) (3.6) - (17.0) (17.1) (17.6) (0.7)

Net Earnings (419.6) (250.7) (102.9) (3.6) 36.0 0.2 (13.8) (16.8)

TOTAL LIABILITIES 2,666.9 3,077.8 26.1 131.3 1,385.4 1,423.0 1,380.8 1,226.2


26

VI. Project Income Statement (Consolidated Projects)


(R$ million) 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13

Gross Operating Revenues 147.7 166.3 5.3 11.2 259.8 239.0 11.6 10.0

Energy Supply 147.7 166.3 5.3 11.2 259.8 239.0 (0.2) 10.0

Energy Commercialization - - - - - - 11.8 -

Deductions from Gross Revenue (15.0) (16.6) (2.0) (1.1) (26.3) (24.2) (1.1) (0.9)

Net Operating Revenues 132.7 149.7 3.4 10.1 233.4 214.8 10.5 9.1

Operating Costs (179.4) (147.8) (40.0) 4.6 (178.6) (194.2) (11.1) (20.9)

Personnel (10.0) (6.4) (0.9) (1.1) (7.5) (5.3) (1.1) (0.0)

Material (5.3) (6.2) (0.0) (0.1) (4.2) (1.1) (0.1) 0.0

Fuel (61.4) (63.7) (0.2) (19.7) (77.1) (87.7) - -

Outsourced Services (22.2) (27.8) (0.1) (0.5) (12.4) (7.4) (2.7) (0.0)

Depreciation and Amortization (20.4) (22.1) (0.9) (1.4) (11.8) (10.6) (3.8) (0.0)

Leases and Rentals (0.7) (1.9) (0.0) (0.1) (55.7) (49.9) (0.0) -

CCC Subsidy - - (0.8) 27.6 - - - -

Energy Acquired for Resale (8.2) (16.6) - - (0.0) (0.5) 0.3 (20.9)

Other costs (51.3) (3.0) (37.0) (0.0) (9.9) (31.7) (3.5) 0.0

Operating Expenses (2.5) (0.0) (0.8) (0.4) (1.2) 0.7 (3.3) (3.3)

Personnel (0.9) 2.3 (0.4) (0.1) (0.0) 1.7 (1.6) 0.4

Material (0.0) (0.1) (0.0) (0.0) (0.0) 0.2 (0.0) (0.1)

Outsourced Services (1.2) (2.4) (0.4) (0.2) (0.9) (0.9) (1.0) (3.4)

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

Leases and Rentals (0.0) 0.3 (0.0) (0.0) (0.0) 0.1 (0.1) (0.1)

Other Expenses (0.3) (0.1) (0.0) (0.0) (0.1) (0.4) (0.6) (0.1)

EBITDA (28.7) 24.2 (36.5) 15.8 65.6 32.0 0.0 (15.1)

Net Financial Income (38.5) (37.8) (6.2) 0.2 (20.4) (18.2) (9.2) 0.1

Other Revenues/ Expenses (359.1) (0.2) (62.4) (24.6) 0.0 - 0.0 -


27


(R$ million) 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13

Equity Income - - - - - - - -

Earnings Before Taxes (446.8) (36.1) (106.1) (10.0) 33.3 3.1 (13.0) (15.0)

CSLL/IR - - 0.7 0.8 (2.9) 1.3 - -

Deferred Taxes Provision (IR/CSLL) 8.8 - (1.1) 1.8 0.1 5.1 4.3 4.9

Minority Interest - - - - - - - -

NET INCOME (438.0) (36.1) (106.5) (7.5) 30.5 9.4 (8.7) (10.1)


28

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

ENEVA Part. Holding

ENEVA Part. Consolidated

Pecém I Pecém II Parnaíba III Parnaíba IV Parnaíba

Comercializadora

(R$ million) Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13

Current Assets 22.1 9.6 131.2 224.0 535.4 290.9 129.1 170.2 71.3 162.1 14.3 29.0 20.6 0.0

Cash and Cash Equivalents 1.2 9.0 11.3 67.9 151.7 46.0 22.0 40.0 14.1 62.8 0.3 5.1 4.6 0.0

Accounts Receivable 18.2 0.5 95.5 151.6 223.0 153.2 80.4 98.9 52.1 96.3 13.1 20.8 16.0 -

Gain on Derivatives - - - 2.2 65.4 - - - 0.1 1.4 - 3.1 - -

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

Assets Disposed to Sale - - - - - - - - - - - - - -

Inventories - - 0.0 0.0 89.3 91.4 23.7 31.3 3.9 - 0.2 0.0 - -

Escrow Accounts 2.6 - 24.4 0.1 - 0.3 - - 0.0 0.3 - - - -

Prepaid Expenses - - 0.0 2.1 5.9 - 3.1 0.0 1.2 1.3 0.6 0.1 - -

Non-current Assets - - - - - - - - - - - - - -

Long-term Asset 57.4 32.1 108.2 209.5 619.0 479.9 109.0 108.3 86.3 10.5 22.2 0.1 0.0 -

Accounts Receivable - Related

Parties 56.3 32.0 84.6 203.5 7.4 2.5 3.0 2.2 68.1 0.2 18.9 0.1 0.0 -

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

Escrow Accounts - - - (0.0) 60.9 55.8 19.2 19.7 - - - - - -

Deferred Taxes (IR/CSLL) - - 22.6 6.0 550.2 421.6 86.1 85.7 18.2 10.3 3.3 0.0 - -

Prepaid Expenses - R&D - - - - 0.5 - 0.7 0.7 - - - - - -

Fixed Assets 208.8 270.5 182.1 282.8 3,441.4 3,426.7 1,904.1 1,920.8 181.5 156.2 161.2 118.3 - -

Equity Interest 176.8 240.5 137.3 - - - - - - - - - - -

Property, Plant and Equipment 6.6 5.3 19.0 214.1 3,439.6 3,425.1 1,903.9 1,920.4 181.5 156.2 161.2 118.3 - -

Intangible Assets 25.4 24.7 25.8 68.6 1.6 1.4 0.3 0.3 - - - - - -

TOTAL ASSETS 288.3 312.2 421.5 716.3 4,595.9 4,197.5 2,142.3 2,199.3 339.2 328.8 197.7 147.4 20.6 0.0


29

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

ENEVA Part. Holding



Comercializadora

(R$ million) Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13

Current Liabilities 16.3 12.9 72.8 335.3 694.7 548.8 164.4 221.7 164.1 149.7 5.7 83.6 6.0 0.0

Accounts Payable 0.9 1.1 55.3 199.6 193.8 112.0 33.2 28.9 33.7 28.3 1.8 7.9 1.6 0.0

Personnel 9.9 3.6 10.7 4.5 4.7 3.6 0.9 0.9 - - 0.1 0.1 - -

Charges on Debts - - - 2.9 3.1 2.8 2.5 47.8 1.6 0.6 - 5.1 - -

Taxes Payable 1.1 0.7 1.4 13.0 22.6 39.4 12.3 14.6 0.4 0.0 3.7 0.4 0.0 -

Short Term Debt - - - 106.0 176.5 165.4 77.0 68.3 120.0 120.0 - 70.0 - -

Losses on Derivatives - - - - 37.7 5.6 - - - - - - - -

Other 4.3 7.5 5.4 9.4 256.4 220.1 38.4 61.1 8.4 0.8 0.1 0.0 4.4 -

Non-current Liabilities - - - - - - - - - - - - - -

Long term Liabilities 39.5 30.8 126.8 86.3 2,962.3 2,487.9 1,379.6 1,346.5 38.0 39.1 174.9 44.3 27.3 -

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

Deferred Taxes (IR/CSLL) - - - - (21.5) (26.1) (10.8) (9.9) - - - - - -

Long-Term Debt - - - 5.5 1,909.8 2,000.8 1,027.6 1,023.6 - - - - - -

Intercompany Loan / Payable 32.9 20.3 34.6 67.6 975.6 449.3 360.4 327.2 34.8 38.6 173.3 43.2 27.3 -

Provision for Losses 6.6 10.4 92.1 7.0 98.4 63.9 2.5 2.3 - - - - - -

Others - - - 6.4 - - - 3.4 3.3 0.5 1.6 1.1 - -

Minority Interests - - - 36.9 - - - - - - - - - -

Shareholder's Equity 232.6 268.6 222.0 257.7 938.9 1,160.7 598.4 631.1 137.1 140.0 17.2 19.5 (12.7) 0.0

Common Stock 266.8 266.8 266.8 266.8 1,886.9 1,886.9 799.2 799.2 160.3 160.3 15.9 15.9 0.1 0.1

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

Reserve Valuation Adjustments 1.0 - 1.0 0.0 (73.7) (88.1) - - - - - - - -

Profit Reserve - - - - 71.3 71.3 0.3 - - - 3.6 - - -

Advance for Future Capital Increase -

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

Translation Adjustments - 0.0 - 0.0 - - - - - - - - - -

Accumulated Profit or Losses (60.2) (33.7) (71.1) (44.6) (709.4) (427.0) (168.0) (121.7) (20.2) (1.2) 0.0 0.0 (0.0) -

Net Earnings (62.4) (26.6) (62.4) (26.6) (236.3) (282.3) (33.0) (46.3) (10.2) (19.1) (2.3) 3.6 (12.8) (0.0)

TOTAL LIABILITIES 288.3 312.2 421.5 716.3 4,595.9 4,197.5 2,142.3 2,199.3 339.2 328.8 197.7 147.4 20.6 0.0


30

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

ENEVA Part. Holding



Comercializadora

(R$ million) 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 4Q13

Gross Operating Revenues - - 108.1 481.6 340.9 373.1 171.2 163.6 62.2 99.1 7.9 6.4 1.8 -

Energy Supply - - 0.3 (1,079.9) 340.9 373.1 171.2 163.6 62.2 (58.9) - - 1.8 -

Energy Commercialization - - 107.8 1.561.4 - 0.0 - - - 158.0 7.9 6.4 - -

Deductions from Gross Revenue - - (10.4) (44.2) (37.2) (40.4) (18.1) (17.0) (6.3) (9.7) (0.7) (0.6) (0.2) -

Net Operating Revenues - - 97.8 437.3 303.7 332.7 153.2 146.6 55.9 89.4 7.2 5.8 1.6 -

Operating Costs (0.0) (0.2) (129.5) (449.9) (609.7) (305.7) (112.6) (113.8) (44.2) (58.5) (2.2) (3.2) (0.7) (0.0)

Personnel - - (0.5) (0.9) (9.4) (10.9) (2.3) (2.2) (0.0) - (0.1) - - -

Material - - (0.0) (0.0) (7.5) (9.0) (1.3) (1.4) - - (0.3) - - -

Fuel - - - (9.6) (114.6) (70.8) (69.1) (48.3) (15.4) (16.7) - (2.6) - -

Outsourced Services (0.0) (0.2) (0.1) (4.8) (31.1) (18.6) (14.5) (15.8) (2.2) (8.9) (0.1) (0.3) (0.4) -

Depreciation and Amortization - - (0.1) (2.0) (33.5) (40.4) (16.5) (21.4) (1.6) (1.3) (1.3) (0.3) - -

Leases and Rentals - - (0.1) (14.2) (2.5) (1.6) (1.4) (1.4) (21.7) (24.3) - - 7.2 -

CCC Subsidy - - - - 1.1 1.4 - - - - - - - -

Energy Acquired for Resale - - (128.5) (419.2) (69.5) (53.4) (0.1) (1.3) (0.0) (11.5) - (0.0) (6.8) -

Other costs (0.0) (0.0) (0.2) 0.9 (342.6) (102.3) (7.4) (22.0) (3.2) 4.2 (0.4) (0.0) (0.7) (0.0)

Operating Expenses 26.9 (11.6) 24.5 (17.6) (7.0) (5.8) (2.2) 1.2 (0.6) (0.2) (0.2) (0.3) (0.0) (0.0)

Personnel 17.3 (4.9) 15.2 (7.0) (2.2) (2.0) (0.5) (0.3) - - (0.1) (0.1) - -

Material - (0.0) - (0.1) (0.0) (0.0) (0.0) (0.0) - - - (0.0) - -

Outsourced Services 0.0 (5.2) (0.2) (7.9) (4.5) (3.0) (1.3) 0.5 (0.4) (0.0) (0.1) (0.1) (0.0) (0.0)

Depreciation and Amortization (0.0) (0.0) (0.0) (0.2) (0.0) (0.0) (0.0) (0.0) - - (0.0) (0.0) - -

Leases and Rentals (0.0) (1.1) (0.0) (1.5) (0.1) (0.1) (0.0) (0.1) - - - (0.1) - -

Other Expenses 9.6 (0.4) 9.5 (0.9) (0.1) (0.5) (0.3) 1.1 (0.2) (0.2) (0.0) (0.0) (0.0) (0.0)

EBITDA 26.9 (11.7) (7.1) (28.0) (279.4) 61.7 54.9 55.4 12.7 32.0 6.1 2.6 1.0 (0.0)

Net Financial Income 0.1 3.9 1.2 (0.2) (80.2) (59.2) (40.0) (42.4) (3.1) (1.7) (5.7) (1.1) (0.0) (0.0)

Other Revenues/ Expenses 3.1 (0.9) (2.1) 30.1 0.0 (0.0) 1.9 - (17.7) - 0.4 - 0.2 -

Equity Income (36.2) 17.9 (10.5) 11.5 - - - - - - - - - -

Earnings Before Taxes (6.0) 9.1 (18.7) 11.2 (393.2) (38.0) 0.3 (8.4) (9.8) 29.0 (0.5) 1.2 1.2 (0.0)

CSLL/IR - - - (1.4) 14.3 (144.7) - - - 10.3 - (0.2) - -

Deferred Taxes Provision (IR/CSLL) (0.6) - 12.1 (0.7) 122.7 157.6 - 2.7 3.2 (20.1) 0.1 (0.2) - -

Minority Interest - - - - - - - - - - - - - -

NET INCOME (6.6) 9.1 (6.6) 9.1 (256.1) (25.1) 0.3 (5.7) (6.5) 19.1 (0.3) 0.8 1.2 (0.0)


31

X. Debt

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

Itaqui

101.2 2.0% 1,113.8 21.6% 1215.0 23.5%

BNDES (Direto) TJLP+2.78% 06/15/26 69.3 5.7% 686.8 56.5% 756.1 14.6%

BNB 10% 12/15/26 3.4 0.3% 195.6 16.1% 199.0 3.9%

BNDES (Indireto) IPCA + TR BNDES+ 4.8% 06/15/26 14.9 1.2% 96.7 8.0% 111.6 2.2%

BNDES (Indireto) TJLP+4.8% 06/15/26 13.6 1.1% 134.7 11.1% 148.2 2.9%

Parnaíba I

142.4 2.8% 578.0 11.2% 720.4 14.0%

Bradesco CDI+3.00% 04/22/15 30.4 4.2% 0.0 0.0% 30.4 0.6%

Banco Itaú BBA CDI+3.00% 04/15/15 53.4 7.4% 0.0 0.0% 53.4 1.0%

BNDES (Direto) TJLP+1.88% 06/15/27 36.2 5.0% 393.9 54.7% 430.1 8.3%

BNDES (Direto) IPCA + TR BNDES + 1.88% 07/15/26 22.5 3.1% 184.1 25.6% 206.6 4.0%

Parnaíba II

846.4 16.4% 0.0 0.0% 846.4 16.4%


CEF CDI+3.00% 12/30/14 319.8 37.8% 0.0 0.0% 319.8 6.2%

BNDES TJLP+2.40% 06/15/15 298.1 35.2% 0.0 0.0% 298.1 5.8%

ENEVA S/A

2,199.1 42.6% 182.7 3.5% 2381.9 46.1%


Banco Citibank CDI+2.95% 09/22/14 121.2 5.1% 0.0 0.0% 121.2 2.3%

Banco Citibank LIBOR 3M + 1.26% 09/27/17 40.8 1.7% 93.0 3.9% 133.7 2.6%

Banco BTG Pactual CDI+3.75% 12/09/14 108.4 4.6% 0.0 0.0% 108.4 2.1%



Banco HSBC CDI+2.75% 12/12/14 354.1 14.9% 0.0 0.0% 354.1 6.9%








Banco HSBC CDI+3.00% 10/13/14 15.8 0.0 0.0 0.0 15.8 0.0

Gross Debt (a) 3,289.2 63.7% 1,874.5 36.3% 5,163.7 100.0%

Cash (b)

157.3

Net Debt (a) - (b)

5,006.4