(A free translation of the original in Portuguese)
FEDERAL GOVERNMENT SERVICE Unaudited
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION (ITR) Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES September 30, 2004
- -------------------------------------------------------------------------------
REGISTRATION WITH THE CVM DOES NOT IMPLY ANY ANALYSIS OF THE COMPANY. COMPANY
MANAGEMENT IS RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION PROVIDED.
- -------------------------------------------------------------------------------
01.01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - Federal Corporate Taxpayers' Registration Number (CNPJ)
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------------
4 - State Registration Number - NIRE
32300002480
- ------------------------------------------------------------------------------------------------------------------------
01.02 - HEAD OFFICE
- ------------------------------------------------------------------------------------------------------------------------
1 - ADDRESS 2 - SUBURB OR DISTRICT
Rua Sete de Setembro, 362 Centro
- ------------------------------------------------------------------------------------------------------------------------
3 - POSTAL CODE 4 - MUNICIPALITY 5 - STATE
29015-000 Vitoria ES
- ------------------------------------------------------------------------------------------------------------------------
6 - AREA CODE 7 - TELEPHONE 8 - TELEPHONE 9 - TELEPHONE 10 - TELEX
27 3321-9000 - - 55238
- ------------------------------------------------------------------------------------------------------------------------
11 - AREA CODE 12 - FAX 13 - FAX 14 - FAX
27 3222-8650 - -
- ------------------------------------------------------------------------------------------------------------------------
15 - E-MAIL
escelsa@escelsa.combr
- ------------------------------------------------------------------------------------------------------------------------
01.03 - INVESTOR RELATIONS OFFICER (Company Mail Address)
- ------------------------------------------------------------------------------------------------------------------------
1 - NAME
Sergio Pereira Pires
- ------------------------------------------------------------------------------------------------------------------------
2 - ADDRESS 3 - SUBURB OR DISTRICT
Rua Sete de Setembro, 362 Centro
- ------------------------------------------------------------------------------------------------------------------------
4 - POSTAL CODE 5 - MUNICIPALITY 6 - STATE
29015-000 Vitoria ES
- ------------------------------------------------------------------------------------------------------------------------
7 - AREA CODE 8 - TELEPHONE 9 - TELEPHONE 10 - TELEPHONE 11 - TELEX
27 3321-9163 3321-9199 - -
- ------------------------------------------------------------------------------------------------------------------------
12 - AREA CODE 13 - FAX 14 - FAX 15 - FAX
27 3222-8949 - -
- ------------------------------------------------------------------------------------------------------------------------
16 - E-MAIL
sergiop@escelsa.com.br
- ------------------------------------------------------------------------------------------------------------------------
01.04 -GENERAL INFORMATION/INDEPENDENT ACCOUNTANT
- ------------------------------------------------------------------------------------------------------------------------
CURRENT YEAR CURRENT QUARTER PRIOR QUARTER
- ------------------------------------------------------------------------------------------------------------------------
1-BEGINNING 2-END 3-QUARTER 4-BEGINNING 5-END 6-QUARTER 7-BEGINNING 8-END
- ------------------------------------------------------------------------------------------------------------------------
1/1/2004 12/31/2004 3 7/1/2004 9/30/2004 2 4/1/2004 6/30/2004
- ------------------------------------------------------------------------------------------------------------------------
9 - INDEPENDENT ACCOUNTANT 10 - CVM CODE
PricewaterhouseCoopers Auditores Independentes 00287-9
- ------------------------------------------------------------------------------------------------------------------------
11 - PARTNER RESPONSIBLE 12 - INDIVIDUAL TAXPAYERS' REGISTRATION NUMBER OF THE
Luiz Marcio Malzone PARTNER RESPONSIBLE
019.495.868-04
- ------------------------------------------------------------------------------------------------------------------------
1
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE Corporate Legislation
BRAZILIAN SECURITIES COMMISSION (CVM) September 30, 2004
QUARTERLY INFORMATION (ITR)
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION
- -------------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - Federal Corporate Taxpayers' Registration
Number (CNPJ)
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- -------------------------------------------------------------------------------------------------------------------------
01.05 - CAPITAL COMPOSITION
- -------------------------------------------------------------------------------------------------------------------------
Number of shares Current Quarter Prior quarter Same quarter in prior year
(thousand) 9/30/2004 6/30/2004 9/30/2003
- -------------------------------------------------------------------------------------------------------------------------
Paid-up capital
- -------------------------------------------------------------------------------------------------------------------------
1 - Common 4,551 4,551 4,551
- -------------------------------------------------------------------------------------------------------------------------
2 - Preferred 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
3 - Total 4,551 4,551 4,551
- -------------------------------------------------------------------------------------------------------------------------
Treasury Stock
- -------------------------------------------------------------------------------------------------------------------------
4 - Common 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
5 - Preferred 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
6 - Total 0 0 0
- -------------------------------------------------------------------------------------------------------------------------
01.06 - CHARACTERISTICS OF THE COMPANY
- -------------------------------------------------------------------------------------------------------------------------
1 - TYPE OF COMPANY
Commercial, industrial and other
- -------------------------------------------------------------------------------------------------------------------------
2 - SITUATION
Operational
- -------------------------------------------------------------------------------------------------------------------------
3 - NATURE OF OWNERSHIP
National private
- -------------------------------------------------------------------------------------------------------------------------
4 -ACTIVITY CODE
112 - Electric energy
- -------------------------------------------------------------------------------------------------------------------------
5 - MAIN ACTIVITY
Generation and distribution of electric energy
- -------------------------------------------------------------------------------------------------------------------------
6 - TYPE OF CONSOLIDATION
Total
- -------------------------------------------------------------------------------------------------------------------------
7 - TYPE OF REPORT OF THE INDEPENDENT ACCOUNTANT
Without exception
- -------------------------------------------------------------------------------------------------------------------------
01.07 - COMPANIES EXCLUDED FROM THE CONSOLIDATED FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------------------------------------------------
1 - ITEM 2 - CNPJ 3 - NAME
- -------------------------------------------------------------------------------------------------------------------------
01.08 - DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER
- -------------------------------------------------------------------------------------------------------------------------
1 - ITEM 2 - EVENT 3 - DATE APPROVED 4 - AMOUNT 5 - DATE OF PAYMENT 6 - TYPE OF 7 - AMOUNT PER SHARE
SHARE
- -------------------------------------------------------------------------------------------------------------------------
2
(A free translation of the original in Portuguese)
FEDERAL GOVERNMENT SERVICE Unaudited
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION (ITR) Corporate Legislation
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES September 30, 2004
- -------------------------------------------------------------------------------------------------------------------------
01.01 - IDENTIFICATION
- -------------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - Federal Corporate Taxpayers' Registration
Number (CNPJ)
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- -------------------------------------------------------------------------------------------------------------------------
01.09 - SUBSCRIBED CAPITAL AND ALTERATIONS IN THE CURRENT YEAR
- -------------------------------------------------------------------------------------------------------------------------
1 - ITEM 2 - DATE OF 3 - CAPITAL 4 - AMOUNT OF THE 5 - NATURE OF 7 - NUMBER OF 8 - SHARE PRICE
ALTERATION (IN THOUSANDS ALTERATION ALTERATION SHARES ISSUED ON ISSUE DATE
OF REAIs) (IN THOUSANDS OF REAIS) (Thousand) (IN REAIS)
- -------------------------------------------------------------------------------------------------------------------------
01.10 - INVESTOR RELATIONS OFFICER
- -------------------------------------------------------------------------------------------------------------------------
1 - DATE 2 - SIGNATURE
10/22/2004
- -------------------------------------------------------------------------------------------------------------------------
3
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
02.01 - Balance Sheet - Assets (R$ thousand)
- ------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 9/30/2004 4 - 6/30/2004
- ------------------------------------------------------------------------------------------------------------------
1 Total assets 2,742,099 2,668,436
- ------------------------------------------------------------------------------------------------------------------
1.01 Current assets 509,992 501,815
- ------------------------------------------------------------------------------------------------------------------
1.01.01 Cash and banks 8,869 15,798
- ------------------------------------------------------------------------------------------------------------------
1.01.01.01 Cash and banks 8,869 15,798
- ------------------------------------------------------------------------------------------------------------------
1.01.02 Receivables 233,662 229,447
- ------------------------------------------------------------------------------------------------------------------
1.01.02.01 Consumers and concessionaires 239,815 237,151
- ------------------------------------------------------------------------------------------------------------------
1.01.02.02 Allowance for doubtful accounts (21,318) (21,796)
- ------------------------------------------------------------------------------------------------------------------
1.01.02.03 Taxes to be offset 9,097 7,315
- ------------------------------------------------------------------------------------------------------------------
1.01.02.04 Sundry debtors 6,068 6,777
- ------------------------------------------------------------------------------------------------------------------
1.01.03 Inventories 6,375 2,666
- ------------------------------------------------------------------------------------------------------------------
1.01.04 Other 261,086 253,904
- ------------------------------------------------------------------------------------------------------------------
1.01.04.01 Marketable securities 193,226 209,553
- ------------------------------------------------------------------------------------------------------------------
1.01.04.02 Prepaid expenses 38,084 31,190
- ------------------------------------------------------------------------------------------------------------------
1.01.04.03 Other receivables 29,776 13,161
- ------------------------------------------------------------------------------------------------------------------
1.02 Long-term receivables 533,529 503,050
- ------------------------------------------------------------------------------------------------------------------
1.02.01 Sundry receivables 530,735 501,038
- ------------------------------------------------------------------------------------------------------------------
1.02.01.01 Consumers and concessionaires 141,429 138,624
- ------------------------------------------------------------------------------------------------------------------
1.02.01.02 Tax credits 142,395 143,201
- ------------------------------------------------------------------------------------------------------------------
1.02.01.03 Guarantees and restricted deposits 114,091 110,082
- ------------------------------------------------------------------------------------------------------------------
1.02.01.05 Unamortized borrowing costs 1,345 1,537
- ------------------------------------------------------------------------------------------------------------------
1.02.01.06 Prepaid expenses 117,967 96,563
- ------------------------------------------------------------------------------------------------------------------
1.02.01.09 Other 13,508 11,031
- ------------------------------------------------------------------------------------------------------------------
1.02.02 Related parties 2,794 2,012
- ------------------------------------------------------------------------------------------------------------------
1.02.02.01 Associated companies 0 0
- ------------------------------------------------------------------------------------------------------------------
1.02.02.02 Subsidiaries 2,794 2,012
- ------------------------------------------------------------------------------------------------------------------
1.02.02.03 Other related parties 0 0
- ------------------------------------------------------------------------------------------------------------------
1.02.03 Other 0 0
- ------------------------------------------------------------------------------------------------------------------
1.03 Permanent assets 1,698,578 1,663,571
- ------------------------------------------------------------------------------------------------------------------
1.03.01 Investments 941,178 919,596
- ------------------------------------------------------------------------------------------------------------------
1.03.01.01 Associated companies 0 0
- ------------------------------------------------------------------------------------------------------------------
1.03.01.02 Subsidiaries 938,580 917,003
- ------------------------------------------------------------------------------------------------------------------
1.03.01.03 Other 2,598 2,593
- ------------------------------------------------------------------------------------------------------------------
1.03.02 Property and equipment 757,400 743,975
- ------------------------------------------------------------------------------------------------------------------
1.03.03 Deferred charges 0 0
- ------------------------------------------------------------------------------------------------------------------
4
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
02.02 - Balance Sheet - Liabilities and Stockholders' Equity (R$ thousand)
- ------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 9/30/2004 4 - 6/30/2004
- ------------------------------------------------------------------------------------------------------------------
2 Total liabilities and stockholders' equity 2,742,099 2,668,436
- ------------------------------------------------------------------------------------------------------------------
2.01 Current liabilities 542,090 475,536
- ------------------------------------------------------------------------------------------------------------------
2.01.01 Loans and financing 260,152 255,622
- ------------------------------------------------------------------------------------------------------------------
2.01.01.01 Principal 233,160 193,142
- ------------------------------------------------------------------------------------------------------------------
2.01.01.02 Debt charges 26,992 62,480
- ------------------------------------------------------------------------------------------------------------------
2.01.02 Debentures 0 0
- ------------------------------------------------------------------------------------------------------------------
2.01.03 Suppliers 103,535 93,529
- ------------------------------------------------------------------------------------------------------------------
2.01.04 Taxes, charges and contributions 34,923 35,481
- ------------------------------------------------------------------------------------------------------------------
2.01.05 Dividends payable 42,041 42,041
- ------------------------------------------------------------------------------------------------------------------
2.01.06 Provisions 14,046 10,940
- ------------------------------------------------------------------------------------------------------------------
2.01.06.01 Payroll charges 14,046 10,940
- ------------------------------------------------------------------------------------------------------------------
2.01.07 Payables to related parties 0 0
- ------------------------------------------------------------------------------------------------------------------
2.01.08 Other 87,393 37,923
- ------------------------------------------------------------------------------------------------------------------
2.01.08.01 Consumer charges payable 14,294 11,757
- ------------------------------------------------------------------------------------------------------------------
2.01.08.02 Public lighting tariff 6,822 7,682
- ------------------------------------------------------------------------------------------------------------------
2.01.08.03 Post-employment benefits 2,143 2,090
- ------------------------------------------------------------------------------------------------------------------
2.01.08.04 Payroll 2,292 2,499
- ------------------------------------------------------------------------------------------------------------------
2.01.08.05 Provision for tariff reduction 49,594 0
- ------------------------------------------------------------------------------------------------------------------
2.01.08.06 Other 12,248 13,895
- ------------------------------------------------------------------------------------------------------------------
2.02 Long-term liabilities 1,794,576 1,868,455
- ------------------------------------------------------------------------------------------------------------------
2.02.01 Loans and financing 1,424,167 1,546,335
- ------------------------------------------------------------------------------------------------------------------
2.02.02 Debentures 0 0
- ------------------------------------------------------------------------------------------------------------------
2.02.03 Provisions 158,328 153,801
- ------------------------------------------------------------------------------------------------------------------
2.02.03.01 Contingencies 158,328 153,801
- ------------------------------------------------------------------------------------------------------------------
2.02.04 Payables to related parties 1,040 198
- ------------------------------------------------------------------------------------------------------------------
2.02.05 Other 211,041 168,121
- ------------------------------------------------------------------------------------------------------------------
2.02.05.02 Deferred income tax and social contribution 74,567 42,170
- ------------------------------------------------------------------------------------------------------------------
2.02.05.03 Suppliers 68,736 60,055
- ------------------------------------------------------------------------------------------------------------------
2.02.05.04 Post-employment benefits 30,253 30,253
- ------------------------------------------------------------------------------------------------------------------
2.02.05.06 Other 37,485 35,643
- ------------------------------------------------------------------------------------------------------------------
2.03 Deferred income 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05 Stockholders' equity 405,433 324,445
- ------------------------------------------------------------------------------------------------------------------
2.05.01 Paid-up capital 153,947 153,947
- ------------------------------------------------------------------------------------------------------------------
2.05.02 Capital reserves 69,074 69,074
- ------------------------------------------------------------------------------------------------------------------
2.05.02.01 Interest on construction in progress 65,687 65,687
- ------------------------------------------------------------------------------------------------------------------
2.05.02.02 Funds for capital increase 3,387 3,387
- ------------------------------------------------------------------------------------------------------------------
2.05.03 Revaluation reserves 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.03.01 Own assets 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.03.02 Subsidiary/associated companies' assets 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.04 Revenue reserves 134,908 134,908
- ------------------------------------------------------------------------------------------------------------------
2.05.04.01 Legal 8,847 8,847
- ------------------------------------------------------------------------------------------------------------------
2.05.04.02 Statutory 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.04.03 Contingencies 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.04.04 Unrealized profits 0 0
- ------------------------------------------------------------------------------------------------------------------
5
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
02.02 - Balance Sheet - Liabilities and Stockholders' Equity (R$ thousand)
- ------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 9/30/2004 4 - 6/30/2004
- ------------------------------------------------------------------------------------------------------------------
2.05.04.05 Retention of profits 126,061 126,061
- ------------------------------------------------------------------------------------------------------------------
2.05.04.06 Special for undistributed dividends 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.04.07 Other 0 0
- ------------------------------------------------------------------------------------------------------------------
2.05.05 Retained earnings/accumulated deficit 47,504 (33,484)
- ------------------------------------------------------------------------------------------------------------------
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
03.01 - Statement of Operations (R$ thousand)
- ----------------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 7/1/2004 to 4 - 1/1/2004 to 5 - 7/1/2003 to 6 - 1/1/2003 to
9/30/2004 9/30/2004 9/30/2003 9/30/2003
- ----------------------------------------------------------------------------------------------------------------------------
3.01 Gross sales and/or services revenue 331,950 1,077,596 328,668 963,060
- ----------------------------------------------------------------------------------------------------------------------------
3.01.01 Energy supply 268,638 914,244 292,079 859,051
- ----------------------------------------------------------------------------------------------------------------------------
3.01.02 Energy sales 7,287 21,597 7,039 19,464
- ----------------------------------------------------------------------------------------------------------------------------
3.01.03 Emergency capacity charges 17,312 53,814 12,455 34,933
- ----------------------------------------------------------------------------------------------------------------------------
3.01.04 Other revenues 38,713 87,941 17,095 49,612
- ----------------------------------------------------------------------------------------------------------------------------
3.02 Deductions (99,753) (348,745) (100,479) (292,017)
- ----------------------------------------------------------------------------------------------------------------------------
3.02.01 RGR quota (3,917) (11,760) (3,934) (11,958)
- ----------------------------------------------------------------------------------------------------------------------------
3.02.02 ICMS (83,578) (251,555) (71,606) (208,318)
- ----------------------------------------------------------------------------------------------------------------------------
3.02.03 PIS 4,398 (2,126) (2,641) (7,911)
- ----------------------------------------------------------------------------------------------------------------------------
3.02.04 COFINS 658 (29,484) (9,839) (28,861)
- ----------------------------------------------------------------------------------------------------------------------------
3.02.05 Emergency capacity charges (17,312) (53,814) (12,455) (34,933)
- ----------------------------------------------------------------------------------------------------------------------------
3.02.06 Service tax (ISSQN) (2) (6) (4) (36)
- ----------------------------------------------------------------------------------------------------------------------------
3.03 Net sales and/or services revenue 232,197 728,851 228,189 671,043
- ----------------------------------------------------------------------------------------------------------------------------
3.04 Cost of sales and/or services (202,688) (586,823) (187,968) (532,759)
- ----------------------------------------------------------------------------------------------------------------------------
3.04.01 Electric energy costs (146,891) (412,736) (131,198) (376,049)
- ----------------------------------------------------------------------------------------------------------------------------
3.04.02 Operating costs (27,440) (104,800) (37,812) (106,951)
- ----------------------------------------------------------------------------------------------------------------------------
3.04.03 Other operating expenses (28,357) (69,287) (18,958) (49,759)
- ----------------------------------------------------------------------------------------------------------------------------
3.05 Gross profit 29,509 142,028 40,221 138,284
- ----------------------------------------------------------------------------------------------------------------------------
3.06 Operating expenses/income 71,139 (93,829) (64,878) 125,236
- ----------------------------------------------------------------------------------------------------------------------------
3.06.01 Selling (154) (336) (142) (1,669)
- ----------------------------------------------------------------------------------------------------------------------------
3.06.02 General and administrative (17,047) (47,145) (13,124) (51,060)
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03 Financial 49,679 (104,131) (61,151) 164,639
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.01 Financial income 4,753 64,573 31,198 97,875
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.01.01 Financial investments (11,118) 13,390 8,689 38,275
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.01.02 Interest on arrears - electric energy bills 4,603 14,767 4,363 12,546
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.01.03 Hedge 0 0 0 (2,176)
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.01.04 Regulatory asset - SELIC 11,199 35,213 18,746 37,198
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.01.05 Other 69 1,203 (600) 12,032
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.02 Financial expenses 44,926 (168,704) (92,349) 66,764
- ----------------------------------------------------------------------------------------------------------------------------
7
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ----------------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ----------------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ----------------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 7/1/2004 to 4 - 1/1/2004 to 5 - 7/1/2003 to 6 - 1/1/2003 to
9/30/2004 9/30/2004 9/30/2003 9/30/2003
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.02.01 Arrears interest on purchased energy (1,336) (1,464) (6,099) (18,906)
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.02.02 Debt charges (53,459) (147,876) (50,174) (146,063)
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.02.03 Monetary and exchange variations 113,206 14,197 (24,524) 265,299
- ----------------------------------------------------------------------------------------------------------------------------
3.06.03.02.04 Other (13,485) (33,561) (11,552) (33,566)
- ----------------------------------------------------------------------------------------------------------------------------
3.06.04 Other operating income 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.06.05 Other operating expenses 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.06.06 Equity in the results of subsidiaries 38,661 57,783 9,539 13,326
- ----------------------------------------------------------------------------------------------------------------------------
3.07 Operating profit (loss) 100,648 48,199 (24,657) 263,520
- ----------------------------------------------------------------------------------------------------------------------------
3.08 Non-operating results 171 303 (1,609) (3,111)
- ----------------------------------------------------------------------------------------------------------------------------
3.08.01 Income 324 798 232 540
- ----------------------------------------------------------------------------------------------------------------------------
3.08.02 Expenses (153) (495) (1,841) (3,651)
- ----------------------------------------------------------------------------------------------------------------------------
3.09 Profit (loss) before taxes and
profit sharing 100,819 48,502 (26,266) 260,409
- ----------------------------------------------------------------------------------------------------------------------------
3.10 Provision for income tax and
social contribution (19,831) (998) 10,333 (93,082)
- ----------------------------------------------------------------------------------------------------------------------------
3.10.01 Social contribution (5,198) 230 2,899 (23,488)
- ----------------------------------------------------------------------------------------------------------------------------
3.10.02 Income tax (14,633) (1,228) 7,434 (69,594)
- ----------------------------------------------------------------------------------------------------------------------------
3.11 Deferred income tax 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.12 Statutory profit sharing and
contributions 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.12.01 Profit sharing 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.12.02 Contributions 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.13 Reversal of interest on own capital 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3.15 Net income (loss) for the period 80,988 47,504 (15,933) 167,327
- ----------------------------------------------------------------------------------------------------------------------------
Number of shares (thousand),
excluding treasury stock 4,551 4,551 4,551 4,551
- ----------------------------------------------------------------------------------------------------------------------------
Net income per share 17.79565 10.43815 36.76708
- ----------------------------------------------------------------------------------------------------------------------------
Loss per share (3.50099)
- ----------------------------------------------------------------------------------------------------------------------------
8
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
13
1. OPERATIONS
ESPIRITO SANTO CENTRAIS ELETRICAS S.A. - ESCELSA is a public Brazilian
corporation, controlled by the Eletricidade de Portugal S.A. - EDP Group,
through IVEN S.A., as from October 2002. Activities comprise the generation,
transmission, distribution and sale of electric energy, and these activities are
regulated by the Brazilian Electricity Regulatory Agency (ANEEL), an agency of
the Ministry of Mines and Energy.
ESCELSA is the majority shareholder of MAGISTRA PARTICIPACOES S.A., which holds
the share control of EMPRESA ENERGETICA DE MATO GROSSO DO SUL S.A. - ENERSUL, a
concessionaire responsible for the generation, distribution and sale of electric
energy in the State of Mato Grosso do Sul, and also has full control of CASTELO
ENERGETICA S.A. - CESA, which was incorporated to operate in the exploitation of
water resources, thermal energy generation and transmission lines. ESCELSA is
also the majority shareholder of TV A CABO VITORIA S.A. - TVIX, which has
discontinued its operations, a company operating in pay-TV and related services
for residential condominium, in the municipalities of Vitoria and Vila Velha -
ES, and has full control of ESCELSA PARTICIPACOES S.A. - ESCELSAPAR, which
renders various information technology services.
The consolidated quarterly information comprises the balance sheets and
statements of operations of its subsidiaries MAGISTRA, TVIX and ESCELSAPAR.
2. PRESENTATION OF THE FINANCIAL STATEMENTS
The financial statements are presented in accordance with accounting practices
adopted in Brazil, together with specific legislation established by ANEEL, and
the regulations of the Brazilian Securities Commission (CVM). These practices
are consistent with those adopted in the financial statements for the year ended
December 31, 2003, published on March 19, 2004.
9
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
3. CASH EQUIVALENTS
3.1 CASH AND BANKS
At September 30, 2004, of the consolidated balance in the amount of R$ 55,503,
R$ 43,182, equivalent to US$ 15,100 thousand U.S. dollars, deposited in Banco do
Brasil - New York branch, arises from the subsidiary ENERSUL due to the sale of
the UTE Campo Grande turbine (see Note10). This amount will be immediately
interned when the legal requirements of the Brazilian Central Bank are complied
with.
3.2 MARKETABLE SECURITIES
The portfolio composition is as follows:
PARENT COMPANY
--------------------------------------------------------------------
FINANCIAL INSTITUTION TYPE MATURITY 09/04 06/04
- --------------------------------------------- ----------------------- ------------------ ------------ ---------
Banco Pactual S.A NBC-E 11/16/2006 102,019 107,468
Banco BBA Creditanstalt S.A NBC-E 10/12/2006 84,366 89,411
Banco BBA Creditanstalt S.A NBC-E 11/16/2006 4,181 5,095
Citibank S.A Investment funds Immediate - 4,889
Bank Deposit
BRADESCO S.A Certificate (CDB) 4/10 to 7/9 2,547 2,580
Other Other Immediate 113 110
------------ ---------
193,226 209,553
============ =========
CONSOLIDATED
--------------------------------------------------------------------
FINANCIAL INSTITUTION TYPE MATURITY 09/04 06/04
- --------------------------------------------- ----------------------- ------------------ ------------ ---------
Banco Pactual S.A NBC-E 11/16/2006 102,019 107,468
Banco BBA Creditanstalt S.A NBC-E 10/12/2006 84,366 89,411
Banco BBA Creditanstalt S.A NBC-E 11/16/2006 4,181 5,095
Citibank S.A Remunerated account Immediate 18 1,080
Banco Brasil S.A . Investment funds Immediate 13,270 6,628
Citibank S.A Investment funds Immediate - 4,889
BRADESCO S. A . CDB 4/8 to 5/6 5,050 4,991
Other Other Immediate 746 532
------------ ---------
209,650 220,094
============ =========
These marketable securities are basically represented by federal securities
(NBC-E), which carry interest and exchange variations, and which are stated net
of a provision for devaluation to market value, when applicable, and are
recorded in current assets due to their liquidity in the market.
10
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
4. CONSUMERS AND CONCESSIONAIRES
PARENT COMPANY
-----------------------------------------------------------------------
Falling Overdue up Overdue over Total
------------------------
CURRENT due to 90 days 90 days 09/04 06/04
------------ -------------- ----------------- ----------- -----------
CONSUMERS
Residential 32,028 19,756 837 52,621 54,643
Industrial 42,349 4,051 3,305 49,705 44,804
Commercial, services and other
activities 20,500 6,108 3,328 29,936 30,479
Rural 7,709 1,887 611 10,207 9,468
Public entities:
Federal 645 211 313 1,169 1,274
State 1,275 612 341 2,228 2,340
Municipal 1,893 1,460 828 4,181 4,974
Public lighting 3,869 2,089 3,980 9,938 8,946
Public service 3,020 155 84 3,259 3,155
Regulatory asset
Losses 35,931 - - 35,931 35,730
Free energy 3,612 - - 3,612 7,217
Debt installments 19,054 - - 19,054 18,521
Other receivables 13,527 - - 13,527 12,121
------------ -------------- ----------------- ----------- -----------
185,412 36,329 13,627 235,368 233,672
------------ -------------- ----------------- ----------- -----------
CONCESSIONAIRES
Supplies - basic 3,489 - - 3,489 3,020
Supplies - short-term 116 - 2 118 144
------------ -------------- ----------------- ----------- -----------
3,605 - 2 3,607 3,164
------------ -------------- ----------------- ----------- -----------
ENERGY GRID CHARGES 840 - - 840 315
------------ -------------- ----------------- ----------- -----------
TOTAL 189,857 36,329 13,629 239,815 237,151
============ ============== ================= =========== ===========
LONG-TERM RECEIVABLES
CONSUMERS
Regulatory asset
Losses 72,693 - - 72,693 78,569
Free energy 68,736 - - 68,736 60,055
------------ -------------- ----------------- ------------------------
TOTAL 141,429 - - 141,429 138,624
============ ============== ================= ========================
11
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
CONSOLIDATED
----------------------------------------------------------------------------
Falling Overdue up Overdue over Total
-------------------------
due to 90 days 90 days 09/04 06/04
------------ ---------------- ---------------- ----------- ------------
CONSUMERS
Residential 57,911 35,612 5,582 99,105 98,807
Industrial 55,428 6,269 4,645 66,342 61,803
Commercial, services and other
activities 38,036 13,161 10,865 62,062 56,836
Rural 11,956 5,360 1,394 18,710 16,210
Public entities:
Federal 2,061 775 788 3,624 3,434
State 3,590 648 343 4,581 4,276
Municipal 4,574 3,305 2,689 10,568 10,243
Public lighting 9,706 3,590 7,796 21,092 18,464
Public service 5,497 1,383 203 7,083 5,512
Regulatory asset
Losses 59,225 - - 59,225 58,756
Free energy 13,735 - - 13,735 17,223
Debt installments 34,859 1,178 3,723 39,760 41,466
Provision for tariff readjustment 45,623 - - 45,623 37,536
Other receivables 28,237 1,283 356 29,876 26,529
------------ ---------------- ---------------- ----------- ------------
370,438 72,564 38,384 481,386 457,095
------------ ---------------- ---------------- ----------- ------------
CONCESSIONAIRES
Supplies - basic 3,749 - - 3,749 3,251
Supplies - short-term 485 - 2 487 511
Other (22) - - (22) 103
------------ ---------------- ---------------- ----------- ------------
4,212 - 2 4,214 3,865
------------ ---------------- ---------------- ----------- ------------
ENERGY GRID CHARGES 1,803 - - 1,803 1,138
------------ ---------------- ---------------- ----------- ------------
TOTAL 376,453 72,564 38,386 487,403 462,098
============ ================ ================ =========== ============
LONG-TERM RECEIVABLES
CONSUMERS
Regulatory asset
Losses 116,381 - - 116,381 125,692
Free energy 87,693 - - 87,693 80,565
Supplies - short-term 3,068 - - 3,068 3,068
Provision for tariff readjustment 25,274 - - 25,274 25,937
Other receivables 8,195 - - 8,195 8,479
------------ ---------------- ---------------- ----------- ------------
TOTAL 240,611 - - 240,611 243,741
============ ================ ================ =========== ============
12
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
4.1 - Wholesale Energy Market (MAE)
The Company has recorded in current assets R$ 118 thousand (R$ 3,555 thousand -
consolidated) and in current liabilities R$ 366 thousand (R$ 1,064 thousand -
consolidated) related to the sale and purchase of energy and system service
charges realized in the Wholesale Energy Market (MAE). A portion of these
amounts is subject to change depending on the judicial proceedings in progress,
filed by companies of the Sector, about the interpretation of market rules in
effect.
PARENT COMPANY CONSOLIDATED
--------------------------------------- --------------------------------------
ASSETS LIABILITIES ASSETS LIABILITIES
----------- -------------------------- ----------- -------------------------
SYSTEM SYSTEM
SERVICE SERVICE
SALE PURCHASE CHARGES SALE PURCHASE CHARGES
--------------------------------------- --------------------------------------
At June 30, 2004 144 173 280 3,581 349 408
Additions - 193 - - 461 519
Settlements (26) - (280) (26) (196) (477)
----------- ----------- ------------- ----------- ------------ -----------
At September 30, 2004 118 366 - 3,555 614 450
=========== =========== ============= =========== ============ ===========
4.2 - Tariff adjustment
4.2.1- ESCELSA
On August 6, 2004, ANEEL published Approval Resolution 191/04, which fixed
ESCELSA tariffs, effective from August 7, 2004 to August 6, 2005, with an
average adjustment of 4.96%.
This adjustment index is reduced by 5.11% due to a remuneration basis arbitrated
by ANEEL, lower than that used as provisory in the August 2001 review. With this
new basis, the adjustment at the time, which was 19.89%, reduced to 17.80%.
This percentage reduction was applied to the sales from August 7, 2001 to August
6, 2004, resulting in a difference of R$ 56,720, equivalent to the 5.11%
deduction in the tariff adjustment of August 6, 2004.
In compliance with the dispositions of article 8, the adjustment amount must be
returned to ESCELSA consumers. Item 60 of the Technical Note 135/2004-SRE/ANEEL
specified that this return will be made within 12 months. Accordingly, the 5.11%
reduction will be effective until the next readjustment scheduled for August 7,
2005.
13
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
We show below the effects arising from the net recognition of taxes (PIS,
COFINS, social contribution and income tax), which are recorded in current
assets in "Other Receivables".
PARENT COMPANY
------------------------------------------------------
DESCRIPTION ASSETS LIABILITIES RESULTS
- ------------------------------------------- ----------------- ----------------- ----------------
Provision: -
Tariff reduction (56,720) 56,720
PIS 936 - (936)
COFINS 4,311 - (4,311)
Social contribution 4,633 - 4,633
Income tax 12,868 - 12,868
Realization:
Tariff reduction 7,126 (7,126)
PIS (118) - 118
COFINS (542) - 542
Social contribution (582) - 582
Income tax (1,617) - 1,617
----------------- ----------------- ----------------
At September 30, 2004 19,889 (49,594) 64,707
================= ================= ================
4.2.2 - ENERSUL
On April 8, 2004, ANEEL published Approval Resolution 73/04 altering the
periodical tariff adjustment of the subsidiary ENERSUL in April 2003, and
changing the adjustment percentage from 42.26% to 43.59%, and the X Factor from
2.35% to 1.35%.
In this Resolution, the phasing of the tariff adjustment was maintained, as had
been defined in 2003 by that Regulatory Agency, in order to follow the principle
of moderate tariffs and the economic/financial equilibrium of the ENERSUL
Agreement for Distribution Concession, as follows:
a) In the first year, the tariffs for supply of electric energy were adjusted
based on the Tariff Adjustment Index (IRT) of 32.47%; and
b) In the annual tariff adjustments to be approved for the years 2004 to 2007,
the difference between IRT and the tariff adjustment (RT) will be added to
Portion B.
Considering item "b" above, ENERSUL provisioned during this quarter the income
and related taxes amounting to R$ 14,786, and started recoveries via tariff in
April 2004, recovering in the quarter R$ 7,362. The balances of these assets are
recorded in "Provision for tariff adjustment", the movement on which during the
period was as follows:
14
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
CURRENT LONG-TERM
---------------- ----------------
At June 30, 2004 37,536 25,937
Recovery via tariff (7,362) -
Transfers 15,449 (15,449)
Increase - 14,786
---------------- ----------------
At September 30, 2004 45,623 25,274
================ ================
5. GENERAL ELECTRIC ENERGY SECTOR AGREEMENT
The General Electric Energy Sector Agreement, to which the Company adhered to on
December 20, 2001, established conditions for settling contractual and
administrative disputes and eliminating the possibility of judicial or
extrajudicial suits over issues arising from the electric energy rationing
period. The main points of the Agreement are as follows:
o Declaration of desistence/renunciation;
o Purchase agreement for net contractual surpluses;
o Agreement for reimbursement of free energy;
o Addendums to the initial contracts; and
o Energy Development Account (CDE).
Based on Provisional Measure 14/01, converted into Law 10438/02, and related
legislation, the Company calculated the amount of the extraordinary tariff
recomposition applicable to all electric energy distribution companies, for the
purpose of neutralizing the margin losses resulting from the Emergency Program
for Reducing Electric Energy Consumption (PERCEE), in effect from June 2001 to
February 2002.
At the same time, in common with the other electric energy distribution
utilities, the Company calculated the monthly variations of costs not managed by
the companies (Portion A) and listed all the additional energy purchase costs in
the MAE (free energy) ambit to be repassed to the generators.
ANEEL Resolutions 480 and 481 (concerning margin losses), 482 (concerning
Portion A costs) and 483 (concerning free energy), all dated August 29, 2002,
approved the amounts of the revenue recomposition, the extraordinary electric
energy tariffs of which were as follows:
15
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
|| 2.9% for residential customers (except low income users), rural users and
public lighting;
o 7.9% for all other customers.
ANEEL Resolution 1/04 fixed new periods for application of the Extraordinary
Tariff Recomposition (RTE) (losses and free energy), modifying the tariff
recovery period from 70 to 69 months (82 to 73 months - ENERSUL), starting as
from December 2001.
Studies undertaken by management indicate that these assets will be fully
collected over the maximum period established, and therefore no provision for
losses was recorded.
5.1 - Recovery of electric energy supply losses
These losses, which are part of RTE, were as follows during the period:
PARENT COMPANY CONSOLIDATED
-------------------------- ------------------------
Current Long-term Current Long-term
------------ ------------ ---------- -------------
At June 30, 2004 35,730 78,569 58,756 125,692
Recovery through tariff increase (9,084) - (15,042) -
Transfers 9,285 (9,285) 15,511 (15,511)
SELIC index adjustments - 3,409 - 6,200
------------ ------------ ---------- -------------
At September 30, 2004 35,931 72,693 59,225 116,381
============ ============ ========== =============
The amounts were recorded in the Consumers and concessionaires account, in
current assets and long-term receivables.
5.2 - Free energy
Free energy refers to electric energy that was generated but is not part of the
initial or any equivalent agreements.
According to the Free Energy Reimbursement Agreement, electric energy generation
companies, supported by article 2 of Law 10438, paid market prices for the free
energy allocated to them by MAE (MAE prices) during the PERCEE period according
to pre-established rules.
16
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
The distribution utilities, benefited by the Extraordinary Tariff Recomposition
(RTE), will reimburse the generating utilities for the difference between the
MAE price and R$ 49.26 per MWh.
The amounts of this reimbursement were calculated according to MAE accounting
and shared among the distribution companies, proportionally to individual
consumption of energy in the National Interconnected Electricity System. The
amount of this electric energy is being reimbursed to the generating companies,
in conjunction with the RTE over 69 months (73 months for Enersul), composed as
follows:
PARENT COMPANY CONSOLIDATED
------------------------------------ ------------------------------------
DESCRIPTION CURRENT LONG-TERM CURRENT LONG-TERM
- ---------------------------------------- ---------------- ------------------ ---------------- ------------------
At June 30, 2004 7,217 60,055 17,223 80,565
Recovery through tariff increase (3,617) - (6,205)
-
Transfers 12 (12) 2,717 (2,717)
Recoverable energy - 5,886 - 5,886
SELIC index adjustment - 2,807 - 3,959
---------------- ------------------ ---------------- ------------------
At September 30, 2004 3,612 68,736 13,735 87,693
================ ================== ================ ==================
The amounts were recorded in the Consumers and concessionaires account, in
current assets and long-term receivables, with a contra entry to Unbilled
revenue. An obligation in the same amount was recorded in the Energy suppliers
account in current and long-term liabilities, with a corresponding charge to
results in the Energy purchased for resale - short-term account.
5.3 - Variation in the composition of Portion A costs
In order to determine the concessionaires' tariffs practiced, the electric
energy distribution concession agreements establish amounts for each item of
those exogenous costs that are part of the operating expenses known as the
variable Portion A of the IRT formula, as follows:
o Tariff for the transfer of the energy potential from Itaipu Binacional;
o Tariff for the transport of the electric energy from Itaipu Binacional;
o Quota for the Fuel Consumption Account (CCC);
o Costs for transmission infrastructure usage on the basic grid;
17
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
o Financial compensation for use of water resources;
o System Service Charges (ESS);
o Energy purchased as established in the initial agreements;
o Quota for the Global Reversion Reserve Contribution (RGR);
o Electric energy service inspection fee;
o Connection charges; and
o Energy Development Account (CDE).
Provisional Measures 2227/01 and 14/01, converted into Law 10438/04, and ANEEL
Resolution 90/02 set up a pro-forma account for recording the compensation of
differences, positive or negative, between the amount of each item from the date
of the last tariff increase to the date it was effectively paid.
The balance is being increased by financial remuneration based on the Special
System for Settlement and Custody (SELIC) interest rate.
These amounts were recognized in the Prepaid expenses account in long-term
receivables, with a contra entry to Operating expenses, according to their
nature.
5.3.1 - Portion A
The Portion A amounts that will be recovered after the end of RTE (Loss and Free
Energy) balance, calculated in the period from January 1 to October 25, 2001,
and computed in the extraordinary tariff recomposition, were as follows:
PARENT COMPANY CONSOLIDATED
--------------- ---------------
Long-term
--------------- ---------------
At June 30, 2004 62,273 103,366
SELIC remuneration 2,417 4,012
--------------- ---------------
At September 30, 2004 64,690 107,378
=============== ===============
ANEEL Resolution 1/04 modified the procedure for the recovery of Portion A,
extending the period of the RTE to that necessary to reach the amount approved,
by using the same mechanism, that is, the extraordinary tariff application.
18
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
5.3.2 - Account of Installment A variation (CVA)
Amounts registered as Portion A - CVA variations, which are not part of the
extraordinary tariff recovery, calculated as from October 26, 2001, are recorded
in prepaid expenses, as follows:
PARENT COMPANY CONSOLIDATED
------------------------- ---------------------------
09/04 06/04 09/04 06/04
----------- ------------ ------------- ------------
CURRENT ASSETS
Prepaid expenses (CVA). 68,379 59,550 110,086 102,021
(-) CVA liability (31,633) (29,791) (41,531) (39,821)
----------- ------------ ------------- ------------
36,746 29,759 68,555 62,200
=========== ============ ============= ============
LONG-TERM RECEIVABLES
Prepaid expenses (CVA). 42,220 46,757 55,573 68,282
Other PIS/COFINS rate increase (*) 23,095 - 43,550 -
(-) CVA liability (12,038) (12,467) (16,143) (17,616)
----------- ------------ ------------- ------------
53,277 34,290 82,980 50,666
----------- ------------ ------------- ------------
Portion A 64,690 62,273 117,378 103,366
-----------
------------ ------------- ------------
117,967 96,563 200,358 154,032
=========== ============ ============= ============
(*) As from December 2002 there was an increase in the PIS rate from 0.65%
to 1.65% and, as from February 2004, in the COFINS rate from 3% to
7.6%. This increase was followed by the non-cumulativity principle of
these taxes. ANEEL did not recognize the increase of these rates on
the electric energy tariff, the indirect costs of which the Company
has been recording as PIS/COFINS expenses. Based on Official Letter
1482/2004 - SFF/SRE/ANEEL of September 6, 2004, the Company set up
regulatory asset of the amount calculated between the rates and the
previous systems with the current rates and the non-cumulativity
principle since the dates of the increases.
According to Interministerial Ordinance 116/03, the CVA balance will be included
in the electric energy supply tariffs in the 24 months subsequent to the annual
tariff adjustment that will occur between April 8, 2004 and April 7, 2005. The
postponement includes, in the case of ESCELSA, the balance for the period from
August 2002 to July 2003 and, for ENERSUL, from April 2002 to March 2003, plus
an amount to be calculated in the 12 months subsequent to the adjustments from
August 2003 and April 2003, respectively.
19
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
The CVA approved and in formation is as follows:
PARENT COMPANY CONSOLIDATED
--------------------------- --------------------------
CVA 09/04 06/04 09/04 06/04
- -------------------------------------- ------------ ------------- ------------ ------------
Approved 57,165 49,665 94,826 93,583
In formation 32,858 14,384 60,709 19,283
------------ ------------- ------------ ------------
90,023 64,049 155,535 112,866
============ ============= ============ ============
5.4 -Emergency Capacity Charge
Established by Provisional Measure 14/2001, converted into Law 10438/2002, the
objective of this charge is to cover the costs necessary for contracting the
generation capacity or electric energy potential by Comercializadora Brasileira
de Energia Emergencial - CBEE. The electric energy distribution concessionaires
are responsible for the billing of this charge which reaches all consumer
classes, except the residential classified as low income, based on the
individual consumption.
The collection of this charge, approximately R$ 0.0085/kWh, is fully repassed to
CBEE, net of the taxes generated.
5.5 -SELIC remuneration
In accordance with current legislation, the RTE, Free Energy and CVA balances
are remunerated based on the SELIC interest rate, and the amount of R$ 35,213 is
recognized in results for the period ended September 30, 2004 (R$ 37,198 at
September 30, 2003) in the parent company and R$ 51,267 at September 30, 2004
(R$ 75,852 at September 30, 2003) in the consolidated.
6. LOW INCOME CONSUMERS
Law 10438/02 established the guidelines for classifying the low income
residential sub-category, which was defined as a consumption unit with monthly
consumption of less than 80 kWh. Decree 4336/02 expanded the rules to include
units with monthly consumption between 80 and 220 kWh.
20
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
As a result of the new classification, there was a loss on revenues amounting to
R$ 18,172 at September 30, 2004 (R$ 15,359 at September 30, 2003) in the parent
company and R$ 27,042 (R$ 21,929 at September 30, 2003) in the consolidated, net
of the Added Value Tax on Sales, Interstate and Intercity Transport Services and
Communications (ICMS).
As a result of Normative Act 03/03, published in the Diario Oficial do Estado do
Espirito Santo (Official Gazette) on November 24, 2003, issued by the Treasury
Secretariat of the State of Espirito Santo, which declares that the portion of
the subvention by the Federal Government exceeding the exempt residential
consumption based on the ICMS state legislation (50 KWh/month) is subject to
ICMS tax, management, prudently, set up a provision for a probable tax liability
of R$ 10,351 (consolidated - R$ 13,840), charged against taxes in operating
expenses.
Based on ICMS Agreement 78/04, published in the Official Gazette of September
30, 2004, the states of Espirito Santo and Mato Grosso do Sul, among others,
were authorized to dispense with the collection of ICMS related to the
subvention installments of the energy supply to low income residential
consumers, from May 1, 2002 to February 29, 2004. Accordingly, management
released the provision for tax liability of R$ 10,351 (R$ 14,941 in
consolidated).
7. TAXES TO BE OFFSET
PARENT COMPANY CONSOLIDATED
---------------------------- ----------------------------
TAXES 09/04 06/04 09/04 06/04
- ---------------------------------------------- ------------- ------------- ------------- -------------
Withholding income tax 858 584 17,324 9,816
Corporate Income Tax (IRPJ) recoverable 4,284 3,467 4,590 4,027
Social contribution on net income 2,909 2,369 7,057 3,008
Social Integration Program (PIS)
contributions recoverable - - 868 759
Social Contribution on Revenues (COFINS)
recoverable 6 6
ICMS recoverable 1,007 499 8,104 5,889
Income tax on remittances abroad - - 2,675 2,675
Other 39 396 376 525
------------- ------------- ------------- -------------
9,097 7,315 41,000 26,705
============= ============= ============= =============
21
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
8. DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION
The tax credits listed below relative to income tax and social contribution
losses and other amounts that constitute temporary differences, to be used for
reduction of future taxation, were recorded based on the Company's profitability
history and expected taxable income for the coming years, considering a maximum
period of ten years.
As a result of the rules laid down by CVM Instruction 371/02, the Company did
not record new credits, as from July 1, 2002, in the amounts of R$ 108,705 in
the parent company and R$ 143,689 in the consolidated at September 30, 2004.
Based on these assumptions, the amounts of the tax assets to be appropriated
were determined as follows:
PARENT COMPANY CONSOLIDATED
-------------------------------- ------------------------------
ASSETS 09/04 06/04 09/04 06/04
----------------- ------------- -------------- --------------
Tax losses 285,384 287,910 685,601 684,948
----------------- ------------- -------------- --------------
Temporary additions
Labor and civil claims 26,056 26,056 52,430 52,430
Post-employment benefits 30,451 30,451 30,451 30,451
Tax claims 77,658 77,658 93,729 93,726
Other additions 1,576 1,576 1,576 1,576
----------------- ------------- -------------- --------------
135,741 135,741 178,186 178,183
----------------- ------------- -------------- --------------
421,125 423,651 863,787 863,131
Rate 25% 25% 25% 25%
----------------- ------------- -------------- --------------
Income tax 105,281 105,913 215,947 215,783
----------------- ------------- -------------- --------------
----------------- ------------- -------------- --------------
Social contribution loss 374,315 376,498 716,584 667,842
----------------- ------------- -------------- --------------
Temporary additions
Labor and civil claims 26,056 26,056 52,430 52,430
Post-employment benefits 30,451 30,451 30,451 30,451
Tax claims 31,519 31,519 31,519 31,519
Other additions 1,579 1,579 1,579 1,579
----------------- ------------- -------------- --------------
89,605 89,605 115,979 115,979
----------------- ------------- -------------- --------------
463,920 466,103 832,563 783,821
Rate 8% 8% 8% 8%
----------------- ------------- -------------- --------------
Social contribution 37,114 37,288 66,605 62,706
----------------- ------------- -------------- --------------
Long-term receivables 142,395 143,201 282,552 278,489
----------------- ------------- -------------- --------------
Current assets - - (7,608) (7,608)
----------------- ------------- -------------- --------------
142,395 143,201 274,944 270,881
================= ============= ============== ==============
22
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
The expectation as to the realization of these deferred tax credits, segregated
between the amounts recorded and not recorded, is as follows:
Amounts recorded:
PARENT COMPANY
- --------------------------------------------------------------------------------------------
EXPECTATION
OF TOTAL
REALIZATION 2006 2007 2008 2009
- --------------------- ------------ ------------ ------------ ------------ -------------
Income tax 4,866 18,906 29,828 51,681 105,281
Social contribution 1,516 6,780 10,738 18,080 37,114
------------ ------------ ------------ ------------ -------------
6,382 25,686 40,566 69,761 142,395
============ ============ ============ ============ =============
CONSOLIDATED
- ------------------------------------------------------------------------------------------------------------------
EXPECTATION TOTAL 2010 TOTAL
OF CURRENT TO LONG-
REALIZATION 2004 2005 2006 2007 2008 2009 2011 TERM
- ----------------- ------------- --------- ---------- ---------- -------- ----------- --------- ----------
Income tax 5,594 8,971 16,514 33,524 48,313 73,250 29,781 210,353
Social
contribution 2,014 3,232 5,712 12,045 17,395 26,207 - 64,591
------------- --------- ---------- ---------- -------- ----------- --------- ----------
7,608 12,203 22,226 45,569 65,708 99,457 29,781 274,944
============= ========= ========== ========== ======== =========== ========= ==========
Amounts not recorded:
.. FROM 2009 TO 2011
--------------------------------
EXPECTATION OF REALIZATION PARENT COMPANY CONSOLIDATED
- --------------------------------------------- ---------------- --------------
Income tax 78,760 97,185
Social contribution 29,945 46,504
---------------- --------------
108,705 143,689
================ ==============
Based on SRF COSIT Opinion 26/02 and decisions of the 1st, 2nd and 6th Federal
Revenue Regional Superintendencies (SRF), the subsidiary Enersul claimed the
right at the administrative level to defer taxes on RTE (recovery of rationing
losses and free energy), as well as on the energy spot market (MAE).
Through Notification 5/04, the Company was informed of Decision 3.103/03 of the
Federal Tax Department's Regional Office in Campo Grande - MS, approving the
request for deferral of the above mentioned revenues in respect of the related
federal taxes.
In view of this fact, the Enersul tax credits, originally written-off in 2001,
were reconstituted and the following deferred tax liabilities recognized, which
are being realized.
23
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
----------------------------- --------------------------
LIABILITY 09/04 06/04 09/04 06/04
- ----------------------------------- ------------- ------------- ------------ ------------
Income tax 53,576 29,755 76,991 53,120
Social contribution 20,991 12,415 28,986 20,788
PIS - - 1,937 1,861
COFINS - - 9,060 8,706
------------- ------------- ------------ ------------
74,567 42,170 116,974 84,475
Current liabilities - - (24,881) (24,779)
------------- ------------- ------------ ------------
Long-term liabilities 74,567 42,170 92,093 59,696
============= ============= ============ ============
In the parent company, tax liabilities are related to the deferral of exchange
variations in accordance with article 30, of Provisional Measure 2.158-35/2001.
9. ASSOCIATED, SUBSIDIARY AND PARENT COMPANIES
PARENT COMPANY
--------------------------------------------------------------------------------
ASSETS LIABILITIES RESULTS
------------------------- ------------------------- -------------------------
ENERGY PURCHASED
RELATED OTHER RECEIVABLES OTHER PAYABLES FOR RESALE
------------------------- ------------------------- -------------------------
PARTY 09/04 06/04 09/04 06/04 09/04 09/03
- ---------------------- ------------ ----------- ----------- ------------ ------------ ------------
MAGISTRA 7 50 - - - -
ENERSUL 1,806 750 123 103 - -
ESCELSAPAR 105 68 917 95 - -
CESA 316 621 - - 2,189 1,567
ENERTRADE - - - - 66,656 6,021
OTHER 560 523 - - - -
------------ ----------- ----------- ------------ ------------ ------------
2,794 2,012 1,040 198 68,845 7,588
============ =========== =========== ============ ============ ============
--------------------------------------------------
CONSOLIDATED
--------------------------------------------------
ASSETS RESULTS
---------------------- --------------------------
LOANS AND ENERGY PURCHASED
RELATED FINANCING FOR RESALE
---------------------- --------------------------
PARTY 09/04 06/04 09/04 09/03
- -------------------------- -------- ------------- ------------ ------------
ESC 90 81,482 79,321 - -
ENERTRADE - - 113,332 29,674
OTHER 1,015 322 - -
-------- ------------- ------------ ------------
82,497 79,643 113,332 29,674
======== ============= ============ ============
24
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
9.1 - Other receivables and payables
These transactions refer basically to the transfer of costs of related
companies, including administrative and technical cooperation activities.
9.2 - Energy purchased for resale
ENERTRADE
On December 23, 2002, ESCELSA and its indirect subsidiary ENERSUL signed with
ENERTRADE - Comercializadora de Energia S.A. an agreement for the purchase and
sale of electric energy, effective from January 1, 2003 to December 31, 2012,
covering, for the parent company, an average of 11.45 MW in 2003 and 52 MW as
from 2004, and for ENERSUL an average of 35 MW at prices of R$ 85.67/MWh
(ESCELSA) and R$ 80.21/MWh (ENERSUL), altered on February 19 and March 20, 2003,
to R$ 83.73/MWh and R$ 79.77/MWh, respectively.
These prices were established according to the rules on the Normative Value
(VN), included in ANEEL Resolution 248/2002, applicable at the time the
agreements were entered into and submitted for registration with ANEEL on
December 23, 2002.
During the ESCELSA tariff adjustment process, the Company became aware that
ANEEL did not accept the agreement amount, fixing the amount of R$ 74.79/MWh
(base date: December 2002), taking into consideration the Technical Notes issued
by ANEEL.
During the tariff adjustment process, ENERSUL requested the transfer to the
tariff of the agreement amount restated through April 2003, that is, R$
104.74/MWh, based on current legislation. However, ANEEL recognized only R$
84.33/MWh, the average price in the Southeast region auctions for six-year
agreements.
On April 25, 2003 and August 29, 2003, ENERSUL and ESCELSA, respectively, filed
administrative appeals at ANEEL defending the full application of the
contractual amounts, for recognition in the tariff, using the following
arguments:
a) ENERSUL: (i) absence of a normative basis for recognizing only R$ 84.33/MWh;
(ii) the cost of energy purchased limited by the VN methodology must be repassed
to the electric energy tariffs, as determined by the 5th and 6th subclauses, of
clause 7 of the Concession Agreement.
25
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
b) ESCELSA: (i) the non-existence of market price references for long-term
agreements more than the marginal cost of expansion; (ii) the equivalence of
contracted price with VN, which is lower than the marginal cost of expansion,
this aligned with the moderate tariffs prescribed in the Concession Agreement;
and (iii) the long-term agreement confers and assures stable and foreseeable
prices to final consumers.
Through Official Letters 1769/03 and 1779/03-SFF/ANEEL, of October 29, 2003,
ANEEL did not approve the ENERSUL and ESCELSA agreements, and confirmed the
previous understanding to recognize R$ 79.48/MWh at the base date March 2003 and
R$ 74.79/MWh at the base date December 2002, for each of the concessionaires, in
this order.
ENERTRADE submitted the issue to the Judiciary Power, obtaining a favorable
decision in Bill of Review 2004.01.00.007.806-5/DF, which determined the
overestimation of the effects of Letters 1769/03 and 1779/03-SFF/ANEEL and
recognized the approval of the agreements for all legal purposes, until a
definite pronouncement of the Judiciary Power. This decision was communicated
through Letter 166/ENERTRADE dated March 15, 2004.
The subsidiary ENERSUL through Letter CT-PR-5/04, reported such decision to
ANEEL, with reiteration of the request for recognition of the amounts of R$
104.69/MWh in April 2003 and R$ 109.52/MWh in April 2004, in the tariff
adjustment process in course, which is still pending reply from the Agency.
On May 21, 2004, in the Periodical Tariff Review process, ESCELSA, through
letter CT-PR -18/04, reiterated the request to repass to the tariffs the
contract amounts, signed on December 23, 2002 with ENERTRADE, based on the
decision of the Judiciary Power which determined that ANEEL approve the
mentioned contract.
Up to third quarter 2004, the price differences in question reached the amount
of R$ 7,426 thousand for ESCELSA and R$ 5,652 thousand for ENERSUL, recorded in
operating expenses.
Administrative decisions on the appeals are awaited, and judicial solutions are
available if there are unfavorable decisions.
26
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
CESA
ESCELSA has an agreement for the purchase and sale of electric energy, effective
as from August 1, 2001 to December 25, 2025, for the average of 2.57 MW, as from
September 19, 2001, at the price of R$ 93.07/MWh, altered on August 7, 2003 to
2.80 MW, at the price of R$ 116.12/MWh, effective as from February 25, 2003,
already recognized in the tariff approved by ANEEL.
COSTA RICA ENERGETICA S.A.
The subsidiary ENERSUL has an agreement for the purchase and sale of electric
energy with Costa Rica Energetica S.A., recognized by ANEEL, effective as from
March 1, 1999, for the average of 10.33 MW, altered on April 8, 2003, at the
price of R$ 89.30/MWh.
9.3 - Loans and financing
The consolidated financial statements show basically the balance of loans
between the subsidiary MAGISTRA and related company ESC90, which were made under
similar conditions applied to financing transactions practiced by the national
financial market.
The conditions of the two main loans are as follows:
1(0)) Interest: Long-term Interest rate (TJLP) + 4% p.a.;
Maturity: November 2004;
Balance: R$ 6,837 (R$ 6,613 on June 30, 2004)
2(0)) Interest: 100% of Interbank Deposit Certificate (CDI);
Maturity: various up to the end of 2004;
Balance: R$ 74,645 (R$ 72,708 on June 30, 2004)
The financial income of MAGISTRA from related company ESC90 of R$ 8,658 (R$
10,634 consolidated at September 30, 2003), is recorded in the Other financial
income account. The loans are guaranteed by promissory notes equivalent to 125%
of the principal.
The Company does not engage in transactions or agreements with related parties
under terms or conditions more/less favorable than would be practiced with third
parties.
27
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
10. OTHER RECEIVABLES - UTE CAMPO GRANDE
During 2002, ENERSUL management decided to sell the assets comprising the UTE
Campo Grande construction project, and an analysis of all the costs incurred was
made, including the Thermoelectric Plant, Substations and Associated
Distribution Lines.
Calculated all the costs, a provision was recorded to reduce the assets to
market value - the UTE generator turbine - likely of realization, adjustments
that reached R$ 71,768, R$ 49,829 in 2002 and R$ 21,939 in 2003.
The movement in the last quarters of 2004 were:
CONSOLIDATED
----------------------------
09/04 06/04
------------- -------------
Balance at the beginning of the period 45,750 49,446
Payments 462 845
Adjustment to market value (3,916) (4,541)
Sale amount (42,296) -
------------- -------------
Balance at the end of the period - 45,750
============= =============
On September 22, 2004, the asset representing this receivable was sold - the UTE
Campo Grande turbine - which resulted in the tax recognition of the provisions
amount to reduce to market value, affecting results for the quarter, as follows:
Losses recorded up to 2003 (see Note 19): (71,768)
Losses recorded in 2004 (9,345)
-----------------
Deduction basis (81,113)
=================
Tax credits
Income tax 20,278
Social contribution 7,300
-----------------
Effect on results 27,578
=================
28
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
11. INVESTMENTS
PARENT COMPANY CONSOLIDATED
------------------------ -------------------------
09/04 06/04 09/04 06/04
---------- ------------ ----------- ------------
Equity investments:
Stated on the equity method:
MAGISTRA PARTICIPACOES S.A 938,472 916,845 - -
TV A CABO VITORIA - TVIX S.A (359) (315) - -
ESCELSA PARTICIPACOES S.A. - ESCELSAPAR 467 473 - -
---------- ------------ ----------- ------------
938,580 917,003 - -
---------- ------------ ----------- ------------
Goodwill on investments purchased:
Goodwill - - 393,618 393,618
Amortization - - (45,111) (41,496)
---------- ------------ ----------- ------------
- - 348,507 352,122
---------- ------------ ----------- ------------
Other investments, studies and projects 2,598 2,593 2,664 2,653
---------- ------------ ----------- ------------
TOTAL 941,178 919,596 351,171 354,775
========== ============ =========== ============
The goodwill recorded by wholly-owned subsidiary MAGISTRA, arising from the
difference between the amount paid and the book value of ENERSUL, is based on
the company's future profitability over the period of the ENERSUL concession
(thirty years) and is being amortized proportionally to its projected results,
discounted to present value, at the purchase date of the investment.
Additional information on investments stated on the equity method of accounting:
MAGISTRA TVIX ESCELSAPAR
------------------------------ ------------------------ -----------------------------
09/04 06/04 09/04 06/04 09/04 06/04
------------- -------------- ----------- ----------- --------------- ------------
Class of shares Common Common Common Common Common Common
Total shares 473,203,348 473,203,348 1,540 1,540 1,000 1,000
Total shares of Escelsa 473,203,348 473,203,348 1,500 1,500 1,000 1,000
Capital stock 668,483 668,483 1,540 1,540 2,800 2,800
Stockholders' equity 938,472 916,845 (367) (321) 467 473
Participation 100% 100% 97.40% 97.40% 100% 100%
------------- -------------- ----------- ----------- --------------- ------------
Investment value 938,472 916,845 (359) (315) 467 473
============= ============== =========== =========== =============== ============
Results for the year 58,772 20,062 (121) (75) (871) (865)
Equity in the results 58,772 20,062 (118) (73) (871) (865)
29
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
12. PROPERTY AND EQUIPMENT
PARENT COMPANY CONSOLIDATED
------------------------- Annual average rates ----------------------------
09/04 06/04 of depreciation (%) 09/04 06./04
----------- ------------ ----------------------- ------------- -------------
IN SERVICE:
Generation 108,740 106,323 2.39% 270,882 257,694
Transmission 14,179 15,492 3.03% 14,179 15,492
Distribution 1,096,038 1,091,521 4.31% 2,077,293 2,078,285
Selling 4,301 4,301 8.43% 7,971 7,971
Administration 134,903 132,610 8.01% 262,320 265,794
----------- ------------ ----------------------- ------------- -------------
1,358,161 1,350,247 4.52% 2,632,645 2,625,236
----------- ------------ ----------------------- ------------- -------------
(-) DEPRECIATION
Generation (67,462) (66,548) (122,875) (112,235)
Transmission (6,785) (7,496) (6,785) (7,496)
Distribution (455,971) (445,089) (856,042) (843,733)
Selling (3,234) (3,147) (4,279) (4,105)
Administration (71,687) (69,262) (133,770) (132,251)
----------- ------------ ------------- -------------
(605,139) (591,542) (1,123,751) (1,099,820)
----------- ------------ ------------- -------------
753,022 758,705 1,508,894 1,525,416
----------- ------------ ------------- -------------
IN PROGRESS:
Generation 3,213 4,034 63,141 60,792
Transmission 4,302 3,792 4,302 3,792
Distribution 101,572 80,147 158,997 120,724
Selling - - 8 8
Administration 4,763 4,085 12,362 8,560
----------- ------------ ------------- -------------
113,850 92,058 238,810 193,876
----------- ------------ ------------- -------------
TOTAL 866,872 850,763 1,747,704 1,719,292
----------- ------------ ------------- -------------
Obligations related to the (109,472) (106,788) (225,274) (216,275)
concession
----------- ------------ ------------- -------------
757,400 743,975 1,522,430 1,503,017
=========== ============ ============= =============
Obligations related to the concession are as follows:
PARENT COMPANY CONSOLIDATED
--------------------- ---------------------
09/04 06/04 09/04 06/04
-------- ----------- -------- -----------
Consumer contributions 78,419 75,735 111,681 108,336
Donations and subventions 25,795 25,795 81,958 76,304
Federal participation 5,258 5,258 31,635 31,635
-------- ----------- -------- -----------
TOTAL 109,472 106,788 225,274 216,275
======== =========== ======== ===========
30
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
The obligations related to the concession of public electric energy service are
represented by Federal amounts, donations not conditioned to any return in favor
of the donor, and the subventions and contributions received from consumers
intended for investments in the distribution activity.
The maturity date of these obligations is determined by the Regulating Agency,
which settlement will occur at the end of the concession. As from January 1,
2002, the balance of this account is being presented as a reduction of property
and equipment.
13. SUPPLIERS
PARENT COMPANY CONSOLIDATED
------------------------- -------------------------
CURRENT 09/04 06/04 09/04 06/04
- ---------------------------------------- ----------- ------------ ----------- ------------
Electric Energy supply:
FURNAS 24,514 21,485 24,514 21,485
ITAIPU 26,326 28,507 37,181 40,194
ENERTRADE 13,085 8,751 19,313 13,770
TRACTEBEL - - 8,192 7,703
ELETROSUL - - 1,599 1,605
ONS,MAE and ASMAE 11,560 9,824 12,258 10,127
Free energy 3,612 7,217 13,735 17,223
Free energy not transferred 6,428 5,548 6,643 5,706
Other 332 320 13,107 10,745
----------- ------------ ----------- ------------
85,857 81,652 136,542 128,558
Material and service providers 17,678 11,877 29,099 22,843
----------- ------------ ----------- ------------
TOTAL 103,535 93,529 165,641 151,401
=========== ============ =========== ============
LONG-TERM
- ----------------------------------------
Energy supply:
Free energy 68,736 60,055 87,693 80,565
----------- ------------ ----------- ------------
68,736 60,055 87,693 80,565
=========== ============ =========== ============
31
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
14. LOANS AND FINANCING
PARENT COMPANY
- -------------------------------------------------------------------------------------------------------------------------
DESCRIPTION AVERAGE ANNUAL AMORTIZATION 09/04 06/04
INTEREST RATE
- ---------------------------------------------------- -------------------------------- ---------------------------------
TYPE PERIOD Charges Current Long-term Charges Current Long-term
(*)
- ---------------------------------------------------- -------------------------------- ---------------------------------
Local currency:
Brazilian
Electricity
Company 05/99 to
(ELETROBRAS) 5.0% - 7.0% M 08/07 - 1,802 12,488 - 1,948 3,613
National
Economic
Development 11/99 to
Bank (BNDES) TJLP + 3.8% M 10/10 703 41,856 53,817 401 40,470 63,713
BNDES-Perdas 03/02 to
Rac. SELIC+1.0% M 01/06 472 55,531 116,677 528 50,069 126,592
12/03 to
Banco Pactual CDI+1.85% M 12/04 - 21,375 - - 34,141 -
02/04 to
Banco Pactual CDI+1.75% M 02/05 - 8,518 - - 11,444 -
Banco Pactual 108.5% CDI U 06/05 - 33,688 - - - -
BRADESCO 110% CDI U 12/04 - 14,532 - - - -
01/04 to
ItauBBA CDI+1.75% M 03/05 - 16,657 - - 16,028 -
01/04 to
ItauBBA CDI+1.75% M 02/05 - 27,801 - - 26,757 -
-------------------------------- ---------------------------------
1,175 221,760 182,982 929 180,857 193,918
-------------------------------- ---------------------------------
Foreign currency:
09/01 to
BNDES UMBNDES + 3.5% M 10/10 152 11,400 9,248 171 12,285 13,215
Senior Notes 10.0% U 07/07 25,665 - 1,231,937 61,380 - 1,339,202
-------------------------------- ---------------------------------
25,817 11,400 1,241,185 61,551 12,285 1,352,417
-------------------------------- ---------------------------------
TOTAL 26,992 233,160 1,424,167 62,480 193,142 1,546,335
================================ =================================
32
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
CONSOLIDATED
- -----------------------------------------------------------------------------------------------------------------------
DESCRIPTION AVERAGE ANNUAL AMORTIZATION 09/04 06/04
INTEREST RATE
- ----------------------------------------------------------- ----------------------------- ---------------------------
TYPE PERIOD Charges Current Long-term Charges Current Long-term
(*)
- ----------------------------------------------------------- ----------------------------- ---------------------------
Local currency:
05/99 to
ELETROBRAS - ESCELSA 5.0% - 7.0% M 07/07 - 1,802 12,488 - 1,948 3,613
12/97 to
ELETROBRAS - ENERSUL 6.0% - 12.0% M 05/22 162 10,168 34,058 170 12,433 33,209
10/99 to
BNDES - ESCELSA TJLP + 3.8% M 10/10 703 41,856 53,817 401 40,470 63,713
11/99 to
BNDES - MAGISTRA TJLP + 4.0% S 11/04 777 21,208 - 246 21,020 -
09/01 to
BNDES - ENERSUL TJLP + 3.85% M 02/08 189 14,094 34,059 200 13,968 37,250
02/02 to
BNDES-Perdas Rac. SELIC+1.0% M 06/06 795 43,049 162,495 880 62,780 198,010
05/04 to
BNDES-CVA. SELIC+1.0% M 04/06 173 40,325 33,298 193 14,016 13,603
10/01 to
BNDES- ALFA TJLP + 4.00% M 09/07 115 9,699 19,402 94 5,859 17,574
07/04 to
BNDES- CESA TJLP + 4.5% M 07/12 203 6,333 42,744 135 4,058 28,398
11/04 to
BCO BRASIL - FCO 11.20% M 11/13 563 2,778 27,222 572 1,944 28,056
12/03 to
BCO Pactual CDI + 1.85% M 12/04 - 21,375 - - 34,141 -
02/04 to
BCO Pactual CDI + 1.75% M 02/05 - 8,518 - - 11,444 -
BCO Pactual 108.5% CDI U 06/05 - 33,688 - - - -
BRADESCO 110% CDI U 12/04 - 14,532 - - - -
01/04 to
ItauBBA CDI + 1.75% M 03/05 - 16,657 - - 16,028 -
01/04 to
ItauBBA CDI + 1.75% M 02/05 - 27,801 - - 26,757 -
BCO BRASIL 115% CDI U 05/05 - 10,000 - - 10,000 -
02/01 to
BCO HSBC 110% CDI U 07/04 19 2,324 - 23 - -
BCO SAFRA 115% CDI M 05/04 143 19,828 - 27 10,000 -
BCO ALFA 115% CDI U 10/04 4 5,000 - - - -
07/98 to
FUNDACAO ENERSUL 10% M 11/13 100 3,739 14,857 112 3,458 15,534
05/00 to
OTHER 1.35% M 06/09 - - 1,272 - - 1,225
----------------------------- ---------------------------
TOTAL 3,946 354,774 435,712 3,053 290,324 440,185
----------------------------- ---------------------------
Foreign currency:
SENIOR NOTES 10.0% U 07/07 25,665 - 1,231,937 61,380 - 1,339,202
09/01 to
BNDES UMBNDES+3.5% M 10/10 152 11,400 9,248 171 12,285 13,215
07/04 to
BNDES- CESA UMBNDES M 07/12 36 965 6,593 198 964 7,459
11/04 to
BNDES- ALFA TJLP + 4.00% M 10/07 152 2,122 4,823 140 1,395 4,881
11/02 to
BRADESCO (**) 6.50% - 6.90% M 11/04 195 2,844 - 426 6,828 -
UNIBANCO (**) 2.40% to 5.0% M 03/06 126 7,826 3,913 73 7,523 5,642
LIBORtri + 12/02 to
EUROPEAN INVEST BANK 4.0% - 5.0% S 03/09 630 8,420 25,572 141 9,153 28,137
LIBORsem + 10/96 to
STN-DMLP 4.5% - 8.2% S 04/24 826 3,183 34,751 406 3,461 37,777
03/02 to
BBA FMO (**) 8.90% S 09/07 50 5,477 3,652 290 5,448 6,056
ITAU BBA(**) 4.0% U 03/05 686 42,546 - 378 41,367 -
12/03 to
BRADESCO (**) 11.55% M 11/05 730 7,938 1,323 559 7,743 3,226
----------------------------- ---------------------------
29,248 92,721 1,321,812 64,162 96,167 1,445,595
----------------------------- ---------------------------
33,194 447,495 1,757,524 67,215 386,491 1,885,780
----------------------------- ---------------------------
Long-term charges
12/03 to
BRADESCO (*) 11.55% M 11/05 122 - - 233 - -
UNIBANCO (*) 2.40% to 5.0% M 03/06 58 - - 55 - -
----------------------------- ---------------------------
180 - - 288 - -
----------------------------- ---------------------------
33,374 447,495 1,757,524 67,503 386,491 1,885,780
============================= ===========================
(*) Principal amortization type
U = Single
M= Monthly
S = Half-yearly
(**) Loans protected by swap contracts against foreign exchange variations.
33
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
14.1 - The issuance of bonds abroad refers to the funding obtained through
Senior Notes, in a total equivalent to US$ 430,958 thousand, falling due in a
single installment in 2007, with interest of 10% p.a., payable on a semiannual
basis, on January 15 and July 15 of each year. On May 21, 1998, these Notes were
registered with the Securities and Exchange Commission (SEC), in the United
States of America, in accordance with the Securities Act of 1933.
The indirect controlling shareholder EDP - Electricidade de Portugal S.A. made a
public offer for the acquisition and request of waiver related to the Notes,
having acquired the principal of US$ 205,796 thousand, with settlement on
December 23, 2002. Before making such offer, EDP held a total of US$ 151,575
thousand in Notes, representing, approximately, 35% of the total issue. Thus EDP
became the holder of a total of US$ 357,371 thousand in Notes, representing
approximately 83% of the total issue, and the main covenants relating to these
Senior Notes were removed. ESCELSA eliminated all obligations inherent to this
issuance.
14.2) ESCELSA and ENERSUL loans from ELETROBRAS, BNDES and Banco do Brasil - FCO
are guaranteed by their receivables. The ENERSUL loans from the Secretariat of
the National Treasury (STN) are guaranteed by debit in an account, of
receivables, by the government of the State of Mato Grosso do Sul and part by
cash deposit. The other loans are guaranteed by promissory notes. The MAGISTRA
loan payable to BNDES is guaranteed by ENERSUL shares in escrow.
14.3) The breakdown of loans and financing by currency is as follows:
PARENT COMPANY CONSOLIDATED
---------------------------- -----------------------------
09/04 06/04 09/04 06/04
------------ -------------- ------------- --------------
Local currency 404,742 374,775 790,486 730,509
Foreign currency 1,252,585 1,364,702 1,414,533 1,541,762
------------ -------------- ------------- --------------
TOTAL 1,657,327 1,739,477 2,205,019 2,272,271
============ ============== ============= ==============
14.4 - The percentage variations of the main indicators used to restate the
loans and financing during the accumulated period are as follows:
34
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
Currency / Indicators 09/04 09/03
- ------------------------------------------------- ------------ ------------
US$ x R$ -1.06% -17.26%
IGP-M 10.26% 7.10%
Consumer Price Index (INPC) 4.59% 8.96%
Long-term Interest Rate (TJLP) ((a) (a)) 9.75% 12.00%
SELIC 11.72% 18.14%
Monetary Unit of BNDES (UMBANDES) -1.68% -15.28%
Interbank Deposit Certificate (CDI) 11.72% 18.07%
14.5 - Maturity of short and long-term installments is as follows:
Maturity PARENT COMPANY CONSOLIDATED
- ---------------------------- --------------------------------------- ---------------------------------------
Type of currency
--------------------------------------------------------------------------------
Current Local Foreign Total Local Foreign Total
----------- ------------- ----------- ----------- --------------------------
2004 69,319 2,814 72,133 136,510 15,721 152,231
2005 152,441 8,586 161,027 218,264 77,000 295,264
----------- ------------- ----------- ----------- ------------ -----------
221,760 11,400 233,160 354,774 92,721 447,495
----------- ------------- ----------- ----------- ------------ -----------
Long-term
2005 39,717 3,816 43,533 59,243 13,733 72,976
2006 65,192 3,290 68,482 129,106 21,386 150,492
2007 59,296 1,232,507 1,291,803 120,605 1,247,904 1,368,509
2008 5,032 571 5,603 53,711 8,407 62,118
2009 5,032 571 5,603 18,675 3,940 22,615
2010 3,664 430 4,094 17,307 3,229 20,536
2011 929 - 929 14,573 2,800 17,373
2012 929 - 929 9,822 1,831 11,653
2013 3,191 - 3,191 7,689 866 8,555
After 2013 - - - 4,981 17,716 22,697
----------- ------------- ----------- ----------- ------------ -----------
182,982 1,241,185 1,424,167 435,712 1,321,812 1,757,524
----------- ------------- ----------- ----------- ------------ -----------
TOTAL 404,742 1,252,585 1,657,327 790,486 1,414,533 2,205,019
=========== ============= =========== =========== ============ ===========
35
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
15. PROVISION FOR CONTINGENCIES
PARENT COMPANY
-----------------------------------------------------------------------------------------
Contingency 09/04 06/04
- ------------------------- ------------------------------------------- --------------------------------------------
Provision Judicial Provision Judicial
- ------------------------- ------------------------------ ------------------------------
In the quarter Accumulated deposit In the Accumulated deposit
quarter
- ------------------------- --------------- ------------- ----------- -------------- -------------- ------------
Long-term: -
Labor 354 18,547 14,752 41 18,193 14,363
Civil 72 9,491 16,516 155 9,419 16,085
Tax 4,101 130,290 82,823 4,151 126,189 79,634
--------------- ------------- ----------- -------------- -------------- ------------
TOTAL 4,527 158,328 114,091 4,347 153,801 110,082
=============== ============= =========== ============== ============== ============
CONSOLIDATED
-----------------------------------------------------------------------------------------
Contingency 09/04 06/04
- ----------------------- ------------------------------------------- --------------------------------------------
-------------------------------
Provision Judicial Provision Judicial
- ----------------------- ------------------------------- -------------------------------
In the Accumulated deposit In the Accumulated deposit
quarter quarter
- ----------------------- -------------- --------------- ---------- -------------- --------------- -----------
Long-term:
Labor 1,523 29,121 19,638 277 27,598 18,815
Civil 341 17,283 17,219 167 16,942 16,650
Tax 6,145 175,666 118,811 6,098 169,521 113,239
-------------- --------------- ---------- -------------- --------------- -----------
TOTAL 8,009 222,070 155,668 6,542 214,061 148,704
============== =============== ========== ============== =============== ===========
It is management's understanding that the provisions recorded are sufficient to
cover probable losses from ongoing lawsuits. Based on the opinion of the legal
advisors, all lawsuits for which the probability of a favorable outcome was
considered to be remote were provided for.
Also, there are labor, civil and fiscal processes pending decision, in the total
amount of R$ 34,480 at September 30, 2004 (R$ 36,639 at June 30, 2004) in the
parent company and R$ 36,234 (R$ 38,791 at June 30, 2004) in consolidated, for
which the probabilities of favorable outcomes were considered as possible and no
provisions were recorded.
16. CAPITAL AND RESERVES
In accordance with the by-laws, the Company is authorized to operate with up to
R$ 1,000,000 in capital, of which R$ 153,947 is subscribed and paid up.
At September 30, 2004, capital was represented by 4,550,833 nominative common
shares, with no par value, with right to mandatory dividends of 25% of net
income, adjusted in accordance with legislation.
36
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
Composition of shares:
uantity of %
------------ --------------- ----------
Stockholder shares shareholders holding
- ------------------------------------ ------------ --------------- ----------
IVEN S.A 2,378,671 1 52.27
GTD PARTICIPACOES S.A 1,137,709 1 25.00
Fundacao Banco Central - CENTRUS 275,678 1 6.06
CINVES 66,366 1 1.46
Other 692,409 201 15.21
------------ --------------- ----------
TOTAL 4,550,833 205 100.00
============ =============== ==========
Composition of reserves:
09/04 06/04
-------------- -------------
CAPITAL RESERVE
Interest on construction in progress 65,687 65,687
-------------- -------------
TOTAL 65,687 65,687
============== =============
REVENUE RESERVES
Legal 8,847 8,847
Retention of profits 126,061 126,061
-------------- -------------
TOTAL 134,908 134,908
============== =============
17. CHANGES IN STOCKHOLDERS' EQUITY - PARENT COMPANY AND CONSOLIDATED
RETAINED FUNDS
EARNINGS FOR
CAPITAL REVENUE (ACCUMULATED CAPITAL
CAPITAL RESERVE RESERVES DEFICIT) INCREASE TOTAL
---------- ------------ ------------ ----------------- --------------- ------------
AT JUNE 30, 2004 153,947 65,687 134,908 (33,484) 3,387 324,445
Net income for the quarter - - - 80,988 - 80,988
---------- ------------ ------------ ----------------- --------------- ------------
AT SEPTEMBER 30, 2004 153,947 65,687 134,908 47,504 3,387 405,433
========== ============ ============ ================= =============== ============
18. COST OF SALES AND/OR SERVICES AND OPERATING EXPENSES
37
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
PARENT COMPANY
- ------------------------------------------------------------------------------------------------------------------------------
COST OF OPERATIONS OPERATING EXPENSES
--------------------------------------------- ---------------------------------
OTHER GENERAL
DESCRIPTION ELECTRIC OPERATING OPERATING AND TOTAL
------------------------
ENERGY COSTS EXPENSES SELLING ADMINISTRATIVE 09/04 09/03
- -------------------- ------------- ------------ ---------------- ------------ ----------------- ------------ ----------
Electric energy 336,338 - - - - 336,338 312,653
purchased for
resale
Charges for the
use of
transmission
and
distribution
systems 76,398 - - - - 76,398 63,396
Personnel and
administrative - 37,131 - 144 17,479 54,754 50,165
Pension plan - 1,454 - - 763 2,217 1,263
Materials - 3,867 - - 3,241 7,108 5,863
Third-party
services - 22,968 - 2 6,719 29,689 23,764
Depreciation and
amortization - 37,649 - - 7,865 45,514 44,151
Allowance for
doubtful
accounts - 6,866 - - - 6,866 13,378
Provisions for
contingencies - - - - 4,723 4,723 13,880
CDE - - 23,666 - - 23,666 4,581
CCC - - 37,366 - - 37,366 32,582
Other - (5,135) 8,255 190 6,355 9,665 19,812
------------- ------------ ---------------- ------------ ----------------- ------------ ----------
TOTAL 412,736 104,800 69,287 336 47,145 634,304 585,488
============= ============ ================ ============ ================= ============ ==========
38
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
CONSOLIDATED
- ------------------------------------------------------------------------------------------------------------------------------
COST OF OPERATIONS OPERATING EXPENSES
--------------------------------------------- ---------------------------------
OTHER GENERAL
DESCRIPTION ELECTRIC OPERATING OPERATING AND TOTAL
------------------------
ENERGY EXPENSES EXPENSES SELLING ADMINISTRATIVE 09/04 09/03
- ------------------- ----------- ------------- ----------------- ------------ ----------------- ------------ ----------
Electric energy - - - - 504,602 462,503
purchased for
resale 504,602
Charges for the
use of
transmission
and
distribution
systems 120,791 - - - - 120,791 95,619
Personnel and
administrative - 66,950 1,435 144 31,361 99,890 90,323
Pension plan - 2,455 - - 1,158 3,613 2,094
Materials - 7,879 15 - 6,353 14,247 11,993
Third-party
services - 44,313 234 2 12,131 56,680 47,549
Raw
material/inputs
for electric
energy products - 2,888 - - - 2,888 2,742
Depreciation and
amortization - 73,383 11,561 - 15,198 100,142 86,983
Provisions - 14,455 - - - 14,455 15,460
Provisions for
contingencies - - - - 7,541 7,541 22,748
CDE - - 36,269 - - 36,269 10,053
CCC - - 53,714 - - 53,714 49,209
Other - (4,519) 181 272 20,887 16,821 28,103
----------- ------------- ----------------- ------------ ----------------- ------------ ----------
TOTAL 625,393 207,804 103,409 418 94,629 1,031,653 925,379
=========== ============= ================= ============ ================= ============ ==========
39
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
19. INCOME TAX AND SOCIAL CONTRIBUTION
PARENT COMPANY CONSOLIDATED
---------------------------------------------- ----------------------------------------------
09/04 09/03 09/04 09/03
---------------------- ---------------------- ---------------------- ----------------------
IR CS IR CS IR CS IR CS
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net income before income tax
and social contribution 48,502 48,502 260,409 260,409 87,180 87,180 287,222 287,222
Tax rate 25% 9% 25% 9% 25% 9% 25% 9%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
12,126 4,365 65,101 23,437 21,795 7,846 71,806 25,850
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
ADDITIONS (EXCLUSIONS)
Equity in the results (57,783) (57,783) (13,326) (13,326) - - - -
Interest on constructions - - - - - - 1,245 1,245
Loss on UTE Campo Grande sale - - - - (71,768) (71,768) 19,794 19,794
Other additions 14,194 6,723 31,296 22,891 27,326 10,603 51,646 30,118
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(43,589) (51,060) 17,970 9,565 (44,442) (61,165) 72,685 51,157
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Tax rate 25% 9% 25% 9% 25% 9% 25% 9%
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(10,897) (4,595) 4,493 861 (11,111) (5,505) 18,171 4,604
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Tax credit rate difference - - - (810) - - - -
Effect on results 1,228 (230) 69,594 23,488 10,685 2,341 89,977 30,454
========== ====================== ========== ========== ========== ========== ==========
20. PENSION PLAN
The Company is the sponsor of FUNDACAO ESCELSA DE SEGURIDADE SOCIAL - ESCELSOS,
a nonprofit organization, the main purpose of which is to complement the
benefits granted by the official social security to the Company's employees,
through two benefit plans: a Defined Benefit Plan (Plan I) and a Defined
Contribution Plan (Plan II).
The mathematical reserves of these plans are calculated actuarially according to
the capitalization method, and reviewed annually.
The table below shows the number of participants in each plan on September 30,
2004:
PLAN I PLAN II TOTAL
---------- ------------- --------------
Active participants 30 1366 1,396
---------- ------------- --------------
Assisted participants:
Retirees 617 151 768
Pension beneficiaries 115 8 123
---------- ------------- --------------
732 159 891
---------- ------------- --------------
762 1,525 2,287
========== ============= ==============
40
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
As sponsor, ESCELSA contributes with a monthly amount proportional to the
contribution of the participants in the ESCELSOS Foundation, in accordance with
that established in each plan, and the maximum percentage of the Company's
contribution, considering the two plans, is limited to 7% of the total payroll.
Up to the third quarter of 2004, ESCELSA contributed R$ 2,217 (R$ 1,955 in
2003).
As established in CVM Deliberation 371/00, as from January 1, 2002, publicly
listed companies are required to record liabilities related to post-employment
benefits, based on rules set forth by NPC (Accounts Procedure Rule)
Pronouncement 26 issued by the Institute of Independent Auditors of Brazil
(IBRACON). To meet this requirement, ESCELSA commissioned independent actuaries
to evaluate such benefits, based on the Projected Unit Credit Method.
Taking into consideration article 84 of the Deliberation, the present value of
the actuarial liabilities (health care, retirement incentive and life insurance)
of ESCELSA not covered at December 31, 2002 was recalculated. The balance
activity up to the third quarter of 2004 is as follows:
PARENT COMPANY
AND CONSOLIDATED
------------------
Present value of actuarial obligations
not covered (53,575)
Net unrecognized losses 19,751
------------------
Liabilities recognized on December 31, 2003 (33,824)
Realized during the period 1,428
------------------
Liabilities recognized on September 30, 2004 (32,396)
Current 2,143
------------------
Long-term 30,253
==================
The net amount of unrecognized losses corresponds to the net amount of the
actuarial losses exceeding 10% of the present value of the actuarial obligations
at December 31, 2003, which will be appropriated annually, during the period
corresponding to the average remaining work period estimated for the employees
who adhered to the Plan.
41
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
The actuarial assessments of ESCELSA and ENERSUL showed also that in the Plans
the fair value of assets exceeds the present value of the fully or partially
covered actuarial obligations, which, at December 31, 2003, amounted to R$
28,079 (consolidated R$ 44,051).
However, the Companies' management, on a conservative basis, decided not to
record these assets.
The fair value of assets used to calculate the result of the actuarial
evaluation of ENERSUL does not include the receivables from the sponsor arising
from the debt confession amounting to R$ 19,250 (12/31/2002). Considering this
right of the Foundation in the calculation of the asset not recognized in the
balance at December 31, 2002, the same would increase to R$ 35,222 (R$ 64,301 in
consolidated).
21. INSURANCE (Unaudited)
The following is a breakdown by risk type and by validity period of the main
insurance policies:
RISKS VALIDITY INSURED AMOUNT PREMIUM AMOUNT
- ----------------------- ------------------------ --------------- --------------
Specific equipment 06/24/2004 to 06/23/2005 283,823 265
Third-party liability 06/24/2004 to 06/23/2005 4,770 76
Specific equipment
The policy covers the generating stations and the substations, specifying the
principal items of equipment, with the respective insured amounts and maximum
reimbursement. Basic insurance coverage includes events such as fire, lightning
and any kind of explosion, windfall, hurricane, small engineering construction
work, plus additional coverage against possible electrical damage, risks for
electronic and information technology equipment.
Third-party liability
This policy covers involuntary personal or material damage caused to third
parties as a consequence of the Company's industrial and/or commercial
activities.
42
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
22. FINANCIAL INSTRUMENTS
The Company's business comprises the distribution and sale of electric energy to
customers within its concession area - the state of Espirito Santo - and,
therefore, significant financial instruments are related to the following
transactions:
|X| Balances of long-term accounts receivable and accounts payable are related
to the extraordinary tariff recomposition and, therefore, are not subject
to adjustments to market values.
|X| Investments in short-term mutual funds and/or fixed income investments are
recorded at approximate market values as they are adjusted for accrued
interest on a pro-rata basis, and for a provision for losses when
applicable.
|X| Equity interests in other companies are in most cases through shares that
are not publicly traded.
|X| Loans and financing of the Company are mainly long term, since most of them
are from specific funding sources.
22.1 Foreign exchange and interest rate risks
The book values of the main financial instruments in foreign currency are as
follows:
PARENT COMPANY CONSOLIDATED
------------------------------------------------------
09/04 06/04 09/04 06/04
------------ ------------ ------------ ------------
Marketable securities 190,566 201,974 190,566 201,974
Loans and financing (1,241,185) (1,352,417) (1,321,812) (1,445,595)
------------ ------------ ------------ ------------
TOTAL (1,050,619) (1,150,443) (1,131,246) (1,243,621)
============ ============ ============ ============
A portion of the loans and financing in local currency is comprised of financing
from the government entities, ELETROBRAS and BNDES.
43
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
As the market rate (or opportunity cost of capital) is defined by these
government entities, taking into consideration the risk premium relative to the
sector's activities and the fact that there are no other financing sources or
market options and/or means to estimate the market value thereof in light of the
Company's business and sector peculiarities, the market value for the portion
comprised of local loans approximates book value, as do other financial assets
and liabilities.
As mentioned in Note 14, foreign currency financing obtained (in U.S. dollars),
and the indebtedness and earnings were significantly impacted by the foreign
exchange risk.
Such risk may cause the Company to incur losses due to foreign exchange
fluctuations, which may increase the liabilities denominated in foreign
currency.
The net exposure to foreign currency risks of the parent company's financial
instruments is as follows:
BOOK VALUE MARKET VALUE
------------------------- --------------------------
09/04 06/04 09/04 06/04
------------ ----------- ------------ ------------
Senior Notes (1,231,937) (1,339,202) (1,173,420) (1,276,183)
U.S. dollar assets 190,566 201,974 214,320 221,038
------------ ------------ ------------ ------------
TOTAL (1,041,371) (1,137,228) (959,100) (1,055,145)
============ ============ ============ ============
The method used to determine the fair value of the Senior Notes obligation was
the average market price, as of September 30, 2004, of Senior Note transactions
(Source: Sherman & Sterling), in New York, USA, and, for the U.S. dollar assets,
the contract market price at the end of the period was used, which is equivalent
to book value.
In addition, the Company had derivative contracts aimed at reducing the above
mentioned net exposure, which resulted in monetary variations being recorded in
the financial statements for realized and unrealized losses of R$ 5,502, as
follows:
44
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
PARAMETERS
FINANCIAL DATE CONTRACTED (RATES %)
--------------------------------- ---------------------------------
INSTITUTION TRANSACTION MATURITY AMOUNT BANKS ESCELSA (Losses)
- ---------------- --------------- ---------------- --------------- --------------------------------- ----------
Exchange variation +
HSBC 7/14/2004 1/13/2005 30,067 1.00% 100% CDI (2,562)
Exchange variation +
ITAU/BBA 7/14/2004 1/13/2005 34,719 0.80% 100% CDI (2,940)
----------
(5,502)
==========
In consolidated, the loans and financing contracted by companies of the ESCELSA
System were raised based on rates and charges usually practiced in the local and
foreign markets for investment funding in the electric energy sector in their
concession areas.
The subsidiary MAGISTRA consolidates the foreign currency (US$) financial
liabilities of its subsidiaries ENERSUL and CESA. In order to reduce foreign
exchange and interest rate risk, swap instruments were used to hedge a portion
of these liabilities, with changes of indices, as described in Note 14.
These swap indices are CDI, plus interest between 0.95% p.a. and 3.35% p.a.
Considering the appreciation of the real against the U.S. dollar, these hedge
transactions yielded losses of R$ 7,587, recognized in the financial statements,
in monetary variations.
At September 30, 2004, the position of this debt was as follows:
AMOUNT
---------------------------------
LIABILITIES BEFORE SWAP AFTER SWAP RESULT
- --------------------------------------------- ------------------ ---------
Loans and financing 69,899 77,486 7,587
In the consolidated position, foreign currency debt totals R$ 74,196, the terms
and conditions of which constitute a natural hedge, thus reducing the foreign
exchange and interest rate risks to a minimum.
45
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
For the remaining contracts, given the peculiar characteristics of these
transactions and the impossibility of determining a market value for this type
of financial instrument, management estimates that the market or realizable
values of these instruments are equal or approximate to their book values.
To determine this estimate, management considered the evidences of risks
inherent to the business, the strategy and the measures taken to manage the debt
service.
22.2 Credit risk
There is a possibility that the Company will incur losses due to default of its
customers.
To reduce this risk, the Company has the right to interrupt the supply of
electric energy if a customer fails to make payment within the parameters and
periods defined by legislation and specific regulations. An allowance for
doubtful accounts is set up in an amount considered sufficient by management to
cover possible accounts receivable risks.
23. PROGRAMA NACIONAL DE UNIVERSALIZACAO
Through Decree 4873/03 the Federal government created the Programa Nacional de
Universalizacao - Luz para Todos (National Program of Universalization -
Electricity for All) in order to provide access to public electric energy
services for the entire Brazilian rural population up to 2008.
The Company is defined as an executing agent of the Program, that is, it is
compulsorily responsible for its execution and will have a 75% financing on the
applicable amount.
Within the regulation established by the Federal Government, through the
Ministry of Mines and Energy (MME), a commitment between the Ministry of Mines
and Energy, the state government and ESCELSA was signed on May 19, 2004, with
the intervention of ANEEL and ELETROBRAS, to serve 10,694 consumers in the
Company's concession area, from July 2004 to December 2005. The total amount of
R$ 67,647 is estimated for application, the amounts and resources of which are
distributed as follows: (i) Executing agent - R$ 31,915; (ii) RGR- ELETROBRAS
financing - R$ 30,968; (iii) CDE (lost fund) - R$ 4,764.
On May 21, 2004, a financing agreement with ELETROBRAS was signed, in the global
amount of R$ 35,732, of which R$ 30,968 for resources arising from RGR
(financing) and R$ 4,764 for resources arising from CDE (lost fund).
46
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
24. NEW MODEL OF THE ELECTRIC SECTOR
The Federal Government, through the Ministry of Mines and Energy (MME),
presented an outline of its project for the national electric sector reform,
especially as it relates to the institutional model, culminating with the issue
of Provisional Measures 144 and 145/03, converted into Laws 10848 and 10847/04,
respectively.
The relevant points are:
o Transfer of responsibilities of ANEEL to MME.
o Creation of the Energy Research Company (EPE), of the Committee of Electric
Sector Monitoring (CMSE) and the Chamber of Electric Energy
Commercialization (CCEE), organs which will promote the planning and
monitoring of the generation and transmission expansion, in addition to
market management.
o Definition of rules for electric energy sales, with emphasis on: (i) offer
expansion (new projects for energy production) through auctions; (ii) free
(ACL) and regulated (ACR) contracts; (iii) distribution activities focused
on line service and networks, and energy sales to captive customers; (iv)
restrictions on contracts between related parties; and (v) new rules for
free consumer classes.
On July 30, 2004, the Federal Government published Decree 5163, which (i)
regulates the sale of electric energy in the Regulated and Free Contracting
Environments and (ii) provides for the process for granting concession and
authorization to electric energy generation. The main dispositions are:
o General rules on electric energy sale;
o Sale of electric energy in the Regulated Contracting Environment (including
the rules about information and declarations of electric energy needs,
auctions for purchase of electric energy, electric energy sale and purchase
agreements and repass of tariffs to the consumers);
o Sale of electric energy in the Free Contracting Environment;
o Recording and settlement of differences in the short-term market; and
o Concession grantings.
47
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
Due to this regulation, all extent aspects that its effects will produce should
be verified, as well as the complexities that will impact on Company's
operations, in order to evaluate the risks and opportunities that could impact
its business.
25 - CORPORATE RESTRUCTURING
On April 20 and 21, 2004, ESCELSA and its subsidiary ENERSUL published a
Significant Event Notice concerning the request for prior approval of ANEEL in
order to carry out a corporate restructuring, under the terms of current
legislation.
The notice was as follows:
SIGNIFICANT EVENT NOTICE
The management of EDP BRASIL S.A. ("EDP Brasil"), BANDEIRANTE ENERGIA S.A.
("Bandeirante"), IVEN S.A. ("Iven"), ESPIRITO SANTO CENTRAIS ELETRICAS S.A. -
ESCELSA ("Escelsa") and EMPRESA ENERGETICA DE MATO GROSSO DO SUL S.A. - ENERSUL
("Enersul") (EDP Brasil, Bandeirante, Iven, Escelsa and Enersul, collectively
referred to as the "Companies"), under the terms and for CVM Instruction 358/02
purposes, publicly inform that, on this date, they filed with the Brazilian
Electricity Regulatory Agency ("ANEEL") a request for prior approval of the
corporate reorganization (the "Reorganization"), the main objective of which is
to simplify the Companies' corporate structure, obtain synergies and
consolidate, exclusively in EDP Brasil, the liquidity and dispersion of the
securities issued by the Companies. EDP Brasil intends to, in the future, adhere
to the segment of the New Market of the Sao Paulo Stock Exchange. The
Reorganization is part of an ongoing process aiming at the self-sustainable
growth of the EDP companies in Brazil. The Reorganization does not change the
Companies' indirect control, currently held by the EDP Group.
The Reorganization will include the stages described below, which, subject to
the prior approval of ANEEL, are expected to occur on the same date, but in
sequence and in the following order:
(i) merger into Enersul of the investment and goodwill recorded in
its direct parent company;
(ii) merger of Iven into Escelsa;
(iii) merger into Escelsa of the Enersul shares not held by the merging
company; and
48
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
04.01 - Notes to the Quarterly Information
(All amounts in thousands of reais unless otherwise indicated)
- -------------------------------------------------------------------------------
(iv) merger into EDP Brasil of the Escelsa and Bandeirante shares not
held by the merging company.
EDP Brasil has already started to prepare the necessary documentation for
registration as an open capital company and be able to trade its shares in the
New Market segment. According to applicable legislation, specialized companies
will be contracted to calculate the Companies' economical values, which will be
the basis to determine the exchange ratio for substitution of the shares of the
non-controlling shareholders, as well as to prepare the appraisal reports of the
accounting net equities and the market values of the Companies.
Subject to the prior approval of ANEEL, the Reorganization is expected to be
implemented and concluded in the second six-month period of 2004, when a
significant event notice will be published for CVM Instruction 319/99 purposes.
The Regulatory Agency had not manifested itself on the matter by the end of this
quarter.
49
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
ESCELSA IN NUMBERS
- ----------------------------------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
--------------------------------------------------------------------
Up to 3rd Up to 3rd 1st half Up to 3rd Up to 3rd 1st half
quarter of quarter of 2004 quarter quarter 2004
2004 of 2003 of 2004 of 2003
- ----------------------------------------------------------------------------------------------------------------------------------
ECONOMIC-FINANCIAL INFORMATION
Gross operating revenues (R$ thousand) 1,077,596 963,060 745,646 1,756,718 1,503,545 1,198,484
Net operating revenues (R$ thousand) 758,851 671,043 496,654 1,241,645 1,079,170 829,244
Income from services (R$ thousand) 94,547 85,555 82,239 209,992 153,791 152,843
Net income for the period (R$ thousand) 47,504 167,327 (33,484) 47,504 167,327 (33,484)
EBITDA (R$ thousand) (1) 140,061 129,706 112,506 310,132 240,774 219,673
Total assets (R$ thousand) (*) 2,742,099 2,586,126 2,668,457 3,736,136 3,509,289 3,619,432
Net equity (R$ thousand) 405,433 390,349 324,445 405,433 390,349 324,445
Number of shares 4,550,833 4,550,833 4,550,833 - - -
Book value per share (R$) 89,09 85,78 71,29 - - -
Common stock price per share (R$) 80,00 54,00 81,45 - - -
Market capitalization (R$ thousand) 364,067 245,745 370,665 - - -
INDICATORS
Operating margin (%) 12,97 12,75 16,56 16,91 14,25 18,43
EBITDA margin (%) 19,22 23,39 22,65 24,98 25,61 26,49
Personnel expenses + third party services/operating
revenues (%) 11,89 11,21 11,31 12,90 12,99 12,34
Energy losses (%) (**) 12,87 11,93 12,40 - - -
Equivalent Outage Duration per Customer (DEC) (hours)
(**) 11,19 11,46 11,27 - - -
Equivalent Outage Frequency per Customer (FEC) (number)(**) 9,69 9,41 10,26 - - -
Average Service Response Time (TMA) (minutes) (**) 136,00 120 136 - - -
Number of customers per employee (**) 787 721 758 732 682 713
MARKET (**)
Maximum demand - MWh/h 1,211,8 1,199,3 1,145,0 - - -
Energy Sales- MWh 4,177,167 4,412,902 2,799,662 6,298,519 6,482,275 4,236,190
Number of customers 979,610 964,860 978,167 1,611,253 1,574,370 1,603,848
HUMAN RESOURCES
Number of employees (**) 1,244 1,338 1,290 2,201 2,310 2,248
Number of trainees (**) 35 45 35 66 63 72
Personnel expenses (R$ thousand) 56,971 51,428 37,166 103,503 92,417 67,800
Personnel expenses + third party services (R$ thousand) 86,660 75,192 56,192 160,183 140,135 102,340
- ----------------------------------------------------------------------------------------------------------------------------------
(1) EBITDA= Net Income before interest, taxes, depreciation and amortization
- ------------------------------------------------------------------------------------------------------------------------
(*) The balance up to the 3rd quarter of 2003 was reclassified for better
comparison with the 3rd quarter of 2004, which contemplates the
rectification of liabilities of the same nature.
(**) Not reviewed by independent accountants
MARKET
Energy requirements (*)
The energy requirements of the ESCELSA system, up to the 3rd quarter of 2004,
were 4,959,048 MWh, down 3.45% from the 5,136,267 MWh required during the same
period in the previous year.
Total energy required (self-generation + free energy) was 6,124,147 MWh,
representing a 0.28% increase compared to the previous year, which had been
6,106,951 MWh. These data do not include the amounts of Basic Network losses.
50
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
To serve its own market ESCELSA used 838,414 MWh of its self generation and
4,120,633 MWh purchased from other companies.
Maximum system demand up to the 3rd quarter of 2004 was 1,212 MWh/h,
representing a 1.05% increase compared to the previous year.
Self generation Wholesale
13.7% 3.7%
838,414 227,246
FURNAS + ENERTRADE Supply
45.1% 64.5%
2,761,067 } Energy requirements } 3,949,921
Purchased from ITAIPU Market
21.9% 68.2%
1,342,932 6,124,147 4,177,167
Purchased from CESA Losses and differences
0.3% 12.8%
16,634 781,880
TRANSPORT OF ENERGY TRANSPORT OF ENERGY
19.0% 19.0%
1,165,100 1,165,100
(*) Not reviewed by independent accountants
Energy sold (*)
Energy sales up to the 3rd quarter of 2004 totaled 4,177,167 MWh, while sales
during the same period in the previous year reached 4,412,902 MWh, representing
a decrease of 5.3%.
The decrease verified in the residential sector was due to reduced consumption
as the result of climatic conditions in the concession area where average
temperatures were milder than normal, and the decrease in the rural sector was
due to heavy rains that reduced irrigation activities.
51
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
In the industrial sector, the decrease was due to customers Belgo Mineira and
CST leaving to seek energy in the open market. Excluding the consumption of
these customers in 2003 and 2004, the market grew 3.0% in the industrial sector
and the global market variation (retail + wholesale) is 0.1%. It should be noted
that a drop in consumption reduces revenues from supply and the expenses related
to purchasing energy, being offset by an increase in revenues from use of the
distribution system.
- ------------------------------------------------------------------------------------------------------
MWh
- ------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
------------------------------------------------------------------------------------
Up to September 30 Variation% Up to September 30 Variation%
------------------------------------------------------------------------------------
2004 2003 2004 2003
- ------------------------------------------------------------------------------------------------------
Retail:
Residential 894,114 908,410 -1.6 1,568,536 1,554,245 0.9
Industrial 1,853,230 2,042,274 -9.3 2,292,885 2,528,101 -9.3
Commercial 576,120 563,400 2.3 1,006,191 967,081 4.0
Rural 246,391 288,759 -14.7 479,149 504,543 -5.0
Other 380,067 374,767 1.4 714,152 670,337 3.7
- ------------------------------------------------------------------------------------------------------
3,949,921 4,177,610 -5.5 6,060,913 6,224,307 -2.9
Wholesale 227,246 235,292 -3.4 237,606 257,968 -7.9
- ------------------------------------------------------------------------------------------------------
TOTAL (*) 4,177,167 4,412,902 -5.3 6,298,519 6,482,275 -3.1
- ------------------------------------------------------------------------------------------------------
(*) Not reviewed by independent accountants
Profile of customers (*)
There was a change in the industrial sector, compared to the same period in
2003, primarily due to the fact that some customers opted for other electrical
energy suppliers.
- -----------------------------------------------------------------------------------------------------
PARENT COMPANY
--------------------------------------------------------------------------------
Up to September 30, 2004 Up to September 30, 2003
--------------------------------------------------------------------------------
As a % of Sales - % As a % of As a % of Sales - % As a % of
Revenues Revenues
- -----------------------------------------------------------------------------------------------------
Retail:
Residential 21.40 32.86 20.59 34.38
Industrial 44.37 31.73 46.28 32.42
Commercial 13.79 18.39 12.77 17.91
Rural 5.90 5.66 6.54 5.08
Other 9.10 8.45 8.49 8.00
- -----------------------------------------------------------------------------------------------------
94.56 97.10 94.67 97.79
Wholesale 5.44 2.90 5.33 2.21
- -----------------------------------------------------------------------------------------------------
Total 100.00 100.00 100.00 100.00
- -----------------------------------------------------------------------------------------------------
(*) Not reviewed by independent accountants
52
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
NUMBER OF CUSTOMERS (*)
At the end of September 2004, the number of customers was 979,610, a 1.5%
increase over the previous year.
- ------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
--------------------------------------------------------------------------
At September 30 Variation % At September 30 Variation %
--------------------------------------------------------------------------
2004 2003 2004 2003
- ------------------------------------------------------------------------------------------
Retail:
Residential 772,698 762,490 1.3 1,291,415 1,262,554 2.3
Industrial 10,591 10,672 -0.8 15,041 15,120 -0.5
Commercial 86,057 84,972 1.3 140,252 137,962 1.7
Rural 101,269 97,879 3.5 148,608 143,255 3.7
Other 8,993 8,845 1.7 15,933 15,474 3.0
- ------------------------------------------------------------------------------------------
979,608 964,858 1.5 1,611,249 1,574,365 2.3
Wholesale 2 2 - 4 5 -20.0
- ------------------------------------------------------------------------------------------
Total 979,610 964,860 1.5 1,611,253 1,574,370 2.3
- ------------------------------------------------------------------------------------------
(*) Not reviewed by independent accountants
PERFORMANCE INDICATORS (*)
In order for the performance indicators to be better representative, amounts are
presented for a 12 month period, which eliminates seasonal impacts.
Equivalent Outage Duration per Customer (DEC)
Indicator measuring the average time that each customer remains without the
supply of electrical energy. For the period ended September 30, 2004, the DEC
was 11.19 hours, while the DEC for the same period in the previous year was
11.46 hours, an improvement of 2.3%.
Equivalent Outage Frequency per Customer (FEC)
Indicator to measure the average number, by customer, of interruptions in the
energy supply. For the quarter ended September 30, 2004, FEC was 9.69, while in
the same prior year period it was 9.41, worsening by 3.0%.
53
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
Average Service Response Time (TMA)
Indicator measuring the average time elapsed between the receipt of a complaint
regarding the interruption of service and reestablishment. As of September 30,
2004, TMA was 136 minutes, while in the same prior year period it had been 120
minutes.
Energy losses
Energy losses increased in the last twelve months from 11.93% as of September
30, 2003 to 12.87% as of September 30, 2004, an increase of 9.54%. The Company
has been developing measures to reduce losses, notably those of a commercial
origin.
(*) Not reviewed by independent accountants
ECONOMIC-FINANCIAL ASPECTS
In the quarter, non-recurring events which had impact on the financial
statements were recorded as follows:
1. Tariff adjustment - effects of the tariff return defined in the 3rd review of
August 2004.
On August 6, 2004, ANEEL published Approval Resolution 191/2004, which fixed
ESCELSA tariffs, effective from August 7, 2004 to August 6, 2005, with an
average adjustment of 4.96%.
This adjustment index, already reduced by 5.11%, considers ANEEL arbitration of
a remuneration basis for 2001, in the amount of R$ 796 million, lower than that
used as provisory, in the amount of R$ 980 million, at the time of the 2nd
tariff adjustment in August 2001. With this new basis, the adjustment at the
time, which was 19.89%, changed to 17.80%.
The difference between these adjustment percentages was applied to the electric
energy sold during the period between the 2nd and 3rd adjustments, amounting to
R$ 46,950 thousand which, restated by IGP-M, totaled R$ 56,720 thousand.
This total represented a discount of 5.11% in the tariff readjustment, which
started to be applied as from August 7, 2004 until August 6, 2005. In view of
this, ESCELSA management decided to record immediately the amount to be
returned, the effects of which are presented in Note 4.2
54
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
2. ICMS on subvention to low income consumer
Based on Espirito Santo Finance Secretariat Normative Opinion 03/2003 of
November 24, 2003, which declared that the subvention conceded by the Federal
Government to low income consumers is ICMS taxable, management determined the
provisioning of the possible tax liability in the amount of R$ 10,351 thousand
in December 2003.
On September 30, ICMS Agreement 78/04 was published in the Official Gazette,
authorizing the states of Espirito Santo and Mato Grosso do Sul, among others,
to dispense with ICMS incidence calculated in the period from May 1, 2002 to
February 29, 2004 by reason of the subvention.
As a consequence the provision was reversed in December 2003.
3. Equity in the results
a) The results of subsidiary ENERSUL were positively impacted by the recognition
of the tax effects in the amount of R$ 25,575 thousand arising from the use of
the provisions for reduction to market value of the UTE Campo Grande turbine,
sold on September 22, 2004.
Consequently, ESCELSA recognized equity in the results from its subsidiary
MAGISTRA (parent company of ENERSUL) of R$ 17,781 thousand.
b) ENERSUL adopted identical procedures for reversal of the ICMS provision for
low income consumers, described in item 2, recording R$ 4,590 thousand, and also
recording in ESCELSA a positive equity in the results of R$ 2,993 thousand.
55
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
EFFECTS OF NON-RECURRING EVENTS ON THE RESULTS
GROSS OPERATING REVENUE 40,181
------
Supply revenue - Reduction of 2001 tariff adjustment 46,950
Supply revenue - Realization of the reduction of 2001 tariff adjustment (6,769)
OPERATING REVENUE DEDUCTIONS (3,717)
Pis/Cofins (4,343)
Pis/Cofins 626
OPERATING EXPENSES (9,064)
Reversal of ICMS provision for low income consumers (9,064)
SERVICE RESULT 27,400
FINANCIAL RESULT 7,256
Financial expense - Restatement of ICMS provision - low income consumers (1,287)
Financial expense - Restatement of provision for tariff return 9,770
Financial expense on returned portion up to Sep/04 (357)
Pis/ Cofins - tax credit on restatement of the provision for tariff return PIS/COFINS 9.25% (904)
Pis/ Cofins - tax credit on returned portion PIS/COFINS 9.25% 34
TAXES (11,783)
Provision - tax credit IR/CS 34% (17,501)
Realization of tax credit up to Sep/04 IR/CS 34% 2,199
Income tax and social contribution - taxation of the reversal of ICMS IR/CS 34% 3,519
provision for low income consumers
EQUITY IN THE RESULTS (20,974)
Tax effects on sale of UTE Campo Grande turbine (17,981)
Effects of the reversal of ICMS provision for low income consuemrs (2,993)
NEGATIVE EFFECT ON RESULTS 1,899
Service result
At the end of the 3rd quarter of 2004, results from electrical energy services
reached R$ 94,547 thousand, compared to R$ 85,555 thousand during the same
period in the previous year. This result led to an EBITDA of R$ 140,061
thousand, equivalent to an EBITDA margin of 19.22%. The principal components of
the service result were the following:
56
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
R$ thousand
- ----------------------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
---------------------------------------------------------------------
Up to 3rd quarter Variation% Up to 3rd quarter Variation%
---------------------------------------------------------------------
2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------------------
Gross operating revenue 1,077,596 963,060 11.9 1,756,718 1,503,545 16.8
Operating revenue deductions (348,745) (292,017) 19.4 (515,073) (424,375) 21.4
Net operating revenue 728,851 671,043 8.6 1,241,645 1,079,170 0.15
Cost of assets and/or services, selling and
general expenses (634,304) (585,488) 8.3 (1,031,653) (925,379) 0.11
Service result 94,547 85,555 10.5 209,992 153,791 0.37
Operating margin - % 12.97% 12.75% 1.7 16.91% 14.25% 0.19
EBITDA (EBITDA) 140,061 129,706 8.0 310,132 240,774 0.29
EBITDA (EBITDA)- margin% 19.22% 19.33% -0.58 24.98% 22.31% 0.12
- ----------------------------------------------------------------------------------------------------------------------
Gross Operating Revenue
Gross operating revenue up to the 3rd quarter of 2004 was R$ 1,077,596 thousand,
a 11.9% increase compared to the same period of the previous year. The following
factors contributed to this: i) an increase in supply revenues and the supply of
electrical energy, which reached R$ 57,326 thousand, 6.5% higher than the
previous year, despite negative market growth of 5.3%, compensated by a tariff
adjustment of 17.3% in August 2003; ii) an increase in the emergency capacity
charge; iii) an increase in the tariff for the use of the transmission and
distribution system and the number of free customers, whose tariff was
readjusted in August 2003, contributing to the maintenance of margins. The
reduction in other revenue is due to an agreement signed in March 2003, with a
customer, to settle a judicial claim.
Net operating revenue up to the 3rd quarter of 2004 totaled R$ 728,851 thousand,
8.6% higher than the same period in 2003. The breakdown of customers, per class,
is the following:
57
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
R$ thousand
PARENT COMPANY CONSOLIDATED
Up to the 3rd quarter
2004 2003 2004 2003
Retail:
Residential 323,235 303,116 559,590 477,931
Industrial 317,162 268,328 412,711 350,528
Commercial 182,519 157,099 320,106 267,260
Rural 43,234 43,924 89,418 80,166
Other 80,106 69,606 151,206 125,573
Unbilled revenue (32,013) 16,978 19,030 64,439
914,244 859,051 1,552,060 1,365,897
Wholesale
Basic 21,230 19,389 23,248 22,860
Short term 368 75 368 (688)
21,597 19,464 23,616 22,172
Retail and wholesale 935,841 878,515 1,575,676 1,388,069
Emergency and purchase capacity charge 53,814 34,933 76,031 49,145
Distribution system availability 81,105 31,767 89,193 33,593
Other operating revenue 6,636 17,845 15,818 32,739
Gross operating revenue 1,077,596 963,060 1,756,718 1,503,545
(-) Operating revenue deductions (348,745) (292,017) (515,073) (424,375)
Net operating revenue 728,851 671,043 1,241,645 1,079,170
- ------------------------------------------------------------------------------------------------
OPERATING COSTS
Operating costs, which include operating expenses plus the RGR quota, reached R$
646,064 thousand up to the end of the 3rd quarter of 2004, compared to R$
597,446 thousand during the same period in the previous year, an increase of
8.1%.
Costs manageable by the company decreased 9.2%, from R$ 169,356 thousand on
September 30, 2003 to R$ 153,708 thousand on September 30, 2004. Depreciation
increased 3.1%. The main variations were:
a) Personnel - increase due to the repercussion of the adjustment granted in
August/2003, the application of the compensation policy and the collective
bargaining agreement of November 2003, compensated by higher amounts of costs
transferred to investments;
b) Material - increase in the use of materials for the renovation of
transformers, acquisitions of meter seals, connections, cuts and reconnections;
58
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
c) Third party services - increase in costs related to cuts, consumer unit
inspections, reconnection, call center services, meter readings and delivery of
billing statements and maintenance of transmission lines and distribution
networks, consulting, legal services and environment;
d) Provision for Contingencies - the decrease in 2004 is due, in fact, to the
recording of tax contingencies in 2003;
e) Other - the reduction in this account is due to a smaller allowance for
doubtful accounts, a reduction in the amount of the energy conservation program
and reversal of the ICMS provision for low income consumers.
The operating costs that the Company does not manage, increased 15.0%, mainly
attributable to the increase of purchased energy expense, costs of connection of
the basic network, besides the payment of the Energy Development Fund (CDE)
created in 2003, and the costs with the Rationing of Electric Energy Program
which are being recognized in the tariff.
- -----------------------------------------------------------------------------------------------------------------
PARENT COMPANY
UP TO THE 3RD QUARTER
2004 2003
R$ thousand % R$ thousand % Variation %
Manageable costs:
Personnel 56,971 8.8 51,428 8.6 10.8
Material 7,108 1.1 5,863 1.0 21.2
Third party services 29,689 4.6 23,764 4.0 24.9
Provision for contingencies 4,723 0.7 13,880 2.32 -66.0
Other 9,703 1.5 30,270 5.1 -67.9
-------------- -----------------
108,194 16.7 125,205 21.0 -13.6
Depreciation 45,514 7.0 44,151 28.3 3.1
-------------- -----------------
TOTAL MANAGEABLE COSTS 153,708 23.8 169,356 28.3 -9.2
Non-manageable costs:
Energy purchased 412,736 63.9 376,049 62.9 9.8
CCC quota 37,366 5.8 32,582 0.3 14.7
Financial compensation 2,195 0.3 1,884 0.2 16.5
ANEEL fiscalization charge 1,430 0.2 1,036 0.17 38.1
RGR 11,760 1.8 11,958 2.0 -1.7
Energy Rationing Program 3,201 0.5 - -
Energy Development Fund (CDE) 23,666 3.7 4,581 0.8 416.6
-------------- -----------------
TOTAL NON-MANAGEABLE COSTS 492,356 76.2 428,090 71.7 15.0
-------------- -----------------
TOTAL 646,064 100.0 597,446 100.0 8.1
- -----------------------------------------------------------------------------------------------------------------
59
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
Energy purchased
- ---------------------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
--------------------------------------------------
Up to the 3rd quarter
--------------------------------------------------
2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------
FURNAS / TRACTEBEL 141,732 172,993 196,088 244,719
ITAIPU 123,671 126,834 173,669 178,638
OTHER SUPPLIERS 70,242 9,180 123,050 37,593
TRANSPORTATAION OF ENERGY-FURNAS 6,539 5,409 9,216 7,614
CONNECTION AND BASIC NETWORK COSTS 69,764 55,757 111,308 90,120
GENERAL AGREEMENT OF THE ELECTRIC SECTOR AND CVA (2,521) 5,309 3,356 (1,391)
CHARGES OF SYSTEM SERVICE 3,215 - 8,572 -
--------------------------------------------------
OTHER EXPENSES 94 567 135 829
--------------------------------------------------
TOTAL 412,736 376,049 625,393 558,122
- ---------------------------------------------------------------------------------------------------------------------
The reduction of Furnas /Tractbel amounts is due to cancellations of initial
contracts at the rate of 25% per annum. The necessity was contracted with other
suppliers. The reduction of Itaipu amounts is due to the deferral of the CVA
account established by ANEEL over 24 months as from August 2004.
Financial Result
The financial result up to the 3rd quarter of 2004 was negative by R$ 104,131
thousand, compared to positive of R$ 164,639 thousand for the same period in
2003. The negative result up to the 3rd quarter arose because of the devaluation
of the Brazilian Real against the U.S. dollar, while, in the same prior-year
period, the appreciation of the Real resulted in exchange gains. Financial
revenue decreased due to the lower level of financial investments.
Results for the period
A significant factor in the calculation of the profit of R$ 47,504 thousand up
to 3rd quarter 2004 was the financial result, in part offset by the positive
result of the holding in MAGISTRA of R$ 57,783 thousand, as well as the reversal
of provisions for IRPJ and CSSL in view of the tax losses.
Available Resources
ESCELSA had available resources on September 30, 2004 deposited with banking
institutions or invested in the financial market in the amount of R$ 202,095
thousand and consolidated of R$ 265,153 thousand as shown below:
60
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
---------------------------------------------------------------------
September 30, 2004
---------------------------------------------------------------------
R$ thousand US$ thousand R$ thousand US$ thousand
---------------------------------------------------------------------
Investments in reais:
Cash and banks 8,869 - 55,503 -
Bank deposit certificates 2,547 - 5,050 -
Investment funds - - 13,270 -
Other 113 - 764 -
---------------------------------------------------------------------
Total investment in reais 11,529 - 74,587 -
=====================================================================
Investments in U.S. dollars:
Dollar-indexed bonds (NBCs) 190,566 66,664 190,566 66,664
---------------------------------------------------------------------
Total investments in U.S. dollars 190,566 66,664 190,566 66,664
=====================================================================
Total available resources 202,095 66,664 265,153 66,664
=====================================================================
U.S. dollar = 2.8586 Real
- ---------------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS (*)
- -----------------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
----------------------------------------------------------------
Up to the Up to the Up to the Up to the
3rd 3rd 3rd 3rd
quarter of quarter of 1st HALF quarter of quarter of 1st HALF
2004 2003 2004 2004 2003 2004
----------------------------------------------------------------
Net income for the period 47,504 167,327 (33,484) 47,504 167,327 (33,484)
Adjustments to reconcile net income to cash
provided by operating activities
Operating activities -
Long-term interest and monetary and exchange
variations (22,077) (265,962) 89,156 (42,368) (285,862) 83,244
Equity in the results of subsidiaries (57,783) (13,326) (19,122) - - -
Depreciation and amortization 45,514 44,151 30,267 100,142 86,904 66,830
Disposals of property and equipment 1,898 1,624 1,547 5,138 6,558 2,645
Sale of UTE Campo Grande - - - 9,345 19,794 5,429
Provision for contingencies 16,180 6,852 11,653 25,409 21,068 17,400
Regulatory asset - - - - (22,597) -
Tariff readjustment - - - (35,678) - (28,254)
Provision for tariff reduction 49,594 - - 49,594 - -
Reversal of ICMS for low income consumers (10,351) - - (14,941) - -
Bonus funding obtained abroad 576 577 384 576 577 384
Post-employment benefits (1,428) (556) (1,481) (1,428) (556) (1,481)
Liabilities adjustments 5,479 9,104 3,636 5,479 9,104 3,636
Deferred income tax and social contribution (21,096) 36,593 (21,902) (22,168) 42,851 (18,105)
Minority interest and RIC own capital - - - 26,650 (1,348) 7,703
----------------------------------------------------------------
54,010 (13,616) 60,654 153,254 43,820 105,947
----------------------------------------------------------------
Changes in current assets and liabilities
Consumers and concessionaires (4,090) 46,175 (948) (22,793) 29,721 (7,669)
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
61
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS (*)
- -----------------------------------------------------------------------------------------------------------------
PARENT COMPANY CONSOLIDATED
----------------------------------------------------------------
Up to the Up to the Up to the Up to the
3rd 3rd 3rd 3rd
quarter of quarter of 1st HALF quarter of quarter of 1st HALF
2004 2003 2004 2004 2003 2004
----------------------------------------------------------------
Sundry debtors 15,292 17,106 14,171 2,432 15,394 13,025
Other receivables - UTE Campo Grande - - - 39,771 (43,559) (2,063)
Other receivables (13,799) 45,666 2,816 (16,746) 42,204 3,343
Prepaid expenses (16,066) (44,139) (9,193) (23,989) (65,874) (17,836)
Suppliers 12,086 (6,205) 2,080 14,444 (378) 116
Taxes and social contributions 3,048 (45,131) (4,552) 14,836 (36,556) 1,670
Accrued obligations 1,154 376 (1,952) 3,050 1,923 (1,326)
Regulatory charges 7,774 1,685 5,237 9,352 2,563 7,260
Other (9,875 14,057 (6,821) (14,172) 18,913 (8,911)
----------------------------------------------------------------
(7,867) 29,590 838 6,185 (35,649) (12,391)
----------------------------------------------------------------
Changes in non-current assets and liabilities -
Consumers and concessionaires 15,037 5,194 9,162 33,554 13,458 21,454
Judicial deposits (17,665) (13,195) (13,656) (27,177) (21,580) (19,510)
Affiliates, subsidiaries and parent companies 2,299 2,636 3,081 6,294 1,659 8,165
Prepaid expenses (38,747) 10,326 (17,343) (46,621) 9,616 (9,746)
Taxes and social contributions 27,592 44,040 (4,805) 30,314 47,566 (2,083)
Other receivables- low
income - 9,675 - - 15,359 -
Other 1,654 17,973 4,131 6,273 24,490 5,073
----------------------------------------------------------------
(9,830) 76,649 (19,430) 2,637 90,568 3,353
----------------------------------------------------------------
Net cash provided by (used in) in operating 36,313 92,623 42,062 162,076 98,739 96,909
activities
----------------------------------------------------------------
Investing activities-
Additions to property and equipment (59,351) (36,358) (27,644) (133,685) (103,757) (73,081)
Additions to investments 21,239 (117,389) 4,160 (12) 1 (4)
Additions to deferred charges - - - - 79 -
Obligations related to the concession 5,089 5,759 2,405 17,697 13,167 8,698
----------------------------------------------------------------
Net cash used in investing activities (33,023) (147,988) (21,079) (116,000) (90,510) (64,387)
----------------------------------------------------------------
Financing activities-
Loans and financing 29,286 (4,007) (203) 36,312 (74,290) (12,570)
Debt charges (31,448) (48,536) 4,040 (33,977) (48,809) 152
Dividends - - - (1,813) (536) (1,372)
Affiliates, subsidiaries and parent companies 947 (51) 105 - - -
----------------------------------------------------------------
Net cash provided by (used in) financing
activities (1,215) (52,594) 4,348 522 (123,635) (13,790)
----------------------------------------------------------------
Net increase in cash and cash equivalents 2,075 (107,959) 25,331 46,598 (115,406) 18,732
----------------------------------------------------------------
Cash and cash equivalents at the beginning of 200,020 307,595 200,020 218,555 326,628 218,555
the period
Cash and cash equivalents at the end of the
period 202,095 199,636 225,351 265,153 211,222 237,287
- -----------------------------------------------------------------------------------------------------------------
(*) Not reviewed by independent accountants
62
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
05.01 - Comments on Company Performance
(All amounts in thousands of reais unless otherwise indicated)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR BY QUARTER (NOT CONSOLIDATED)
- ------------------------------------------------------------------------------------------------------------------------------
2 0 0 4 2 0 0 3
- ------------------------------------------------------------------------------------------------------------------------------
1st Q 2nd Q 3rd Q 4th Q Total 1st Q 2nd Q 3rd Q
- ------------------------------------------------------------------------------------------------------------------------------
NET OPERATING REVENUE 248,470 248,184 232,197 728,851 237,708 205,146 228,189
OPERATING EXPENSES (209,473) (204,942) (219,888) (634,303) (184,664) (199,590) (201,234)
Energy purchased for resale (133,957) (131,888) (146,892) (412,737) (122,881) (121,970) (131,198)
Depreciation and amortization (15,094) (15,172) (15,247) (45,513) (14,573) (14,759) (14,819)
Personnel (18,244) (18,922) (19,805) (56,971) (15,817) (17,426) (18,185)
Material (2,189) (2,618) (2,301) (7,108) (1,936) (1,667) (2,260)
Third-party services (9,444) (9,582) (10,663) (29,689) (7,783) (7,398) (8,583)
CCC quota (10,963) (10,694) (15,979) (37,366) (10,522) (10,548) (11,512)
Provision for contingencies (2,270) (1,586) (867) (4,723) (140) (13,861) 121
Other expenses (17,582) (14,480) (8,132) (40,194) (11,012) (11,961) (14,798)
Service result 38,997 43,242 12,309 94,548 53,044 5,556 26,955
Equity in the results of subsidiaries 16,869 2,253 38,661 57,783 3,327 460 9,539
FINANCIAL INCOME 23,376 36,444 4,753 64,573 60,952 5,725 31,198
FINANCIAL EXPENSES (67,302) (146,327) 44,925 (168,704) 8,591 150,522 (92,349)
Monetary Variation - purchased energy (24) (104) (1,336) (1,464) (7,091) (5,716) (6,099)
Monetary and exchange variations on
loans and financing (8,484) (90,525) 113,206 14,197 74,488 215,335 (24,524)
Debt charges (47,196) (48,488) (52,193) (147,876) (50,486) (45,403) (50,174)
Other (11,599) (7,209) (14,753) (33,561) (8,320) (13,694) (11,552)
Financial result (43,926) (109,883) 48,678 (104,132) 69,543 156,247 (61,151)
Non-operating income (expenses) 117 15 171 303 (1,303) (199) (1,609)
Result before income tax and social
contribution 12,057 (64,373) 100,818 48,502 124,611 162,064 (26,266)
Income tax and social contribution - 18,833 (19,831) (998) (42,485) (60,930) 10,333
Net income (loss) for the period 12,057 (45,540) 80,987 47,504 82,126 103,134 (15,933)
EBITDA 54,091 58,414 27,556 140,061 67,617 20,315 41,774
(+) Financial Income 23,376 36,444 4,753 64,573 60,952 5,725 31,198
(+) Non-operating income (expenses) 117 15 171 303 -1,303 -199 -1,609
= Adjusted EBITDA 77,584 94,873 32,480 204,937 127,266 25,841 71,363
INVESTMENT 11,776 15,867 31,708 59,351 12,327 11,022 14,173
TOTAL DEBT 1,731,045 1,801,957 1,684,319 1,684,319 1,907,669 1,707,814 1,693,221
Debt charges 47,196 48,488 52,193 147,876 50,486 45,403 50,174
EBITDA margin 21,77% 23,54% 11,87% 19,22% 28,45% 9,90% 18,31%
EBITDA/Debt charges (x) 1,1 1,2 0,5 0,9 1,3 0,4 0,8
EBITDA margin adjusted 31,22% 38,23% 13,99% 28,12% 53,54% 12,60% 31,27%
Adjusted EBITDA/Debt charges (x) 1,6 2,0 0,6 1,4 2,5 0,6 1,4
- ------------------------------------------------------------------------------------------------------------------------------
- ----------------------
- ----------------------
4th Q Total
- ----------------------
272,654 943,697
(238,040) (823,528)
(158,435) (534,484)
(14,991) (59,142)
(19,717) (71,145)
(2,774) (8,637)
(10,496) (34,260)
(10,694) (43,276)
9,360 (4,520)
(30,293) (68,064)
34,614 120,169
6,119 19,445
23,335 121,210
(44,667) 22,097
10,642 (8,264)
13,827 279,126
(59,756) (205,819)
(9,380) (42,946)
(21,332) 143,307
950 (2,161)
20,352 280,761
(10,752) (103,834)
9,601 176,928
49,605 179,311
23,335 121,210
950 -2,161
73,890 298,360
29,951 64,473
1,708,557 1,708,557
59,756 205,819
18,19% 19,00%
0,8 0,9
27,10% 31,62%
1,2 1,4
- ----------------------
63
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
06.01 - Consolidated Balance Sheet - Assets (R$ thousand)
- ---------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 9/30/2004 4 - 6/30/2004
- ---------------------------------------------------------------------------------------------------
1 Total assets 3,736,136 3,619,411
- ---------------------------------------------------------------------------------------------------
1.01 Current assets 885,293 837,296
- ---------------------------------------------------------------------------------------------------
1.01.01 Cash and banks 55,503 17,193
- ---------------------------------------------------------------------------------------------------
1.01.01.01 Cash and banks 55,503 17,193
- ---------------------------------------------------------------------------------------------------
1.01.02 Receivables 500,037 464,128
- ---------------------------------------------------------------------------------------------------
1.01.02.01 Consumers and concessionaires 487,403 462,098
- ---------------------------------------------------------------------------------------------------
1.01.02.02 Allowance for doubtful accounts (44,822) (41,908)
- ---------------------------------------------------------------------------------------------------
1.01.02.03 Taxes to be offset 41,000 26,705
- ---------------------------------------------------------------------------------------------------
1.01.02.04 Sundry debtors 8,848 9,625
- ---------------------------------------------------------------------------------------------------
1.01.02.05 Deferred income tax and social contribution 7,608 7,608
- ---------------------------------------------------------------------------------------------------
1.01.03 Inventories 8,222 4,628
- ---------------------------------------------------------------------------------------------------
1.01.04 Other 321,531 351,347
- ---------------------------------------------------------------------------------------------------
1.01.04.01 Marketable securities 209,650 220,094
- ---------------------------------------------------------------------------------------------------
1.01.04.05 Other receivables - UTE Campo Grande 0 45,750
- ---------------------------------------------------------------------------------------------------
1.01.04.06 Prepaid expenses 70,218 64,044
- ---------------------------------------------------------------------------------------------------
1.01.04.07 Other receivables 41,663 21,459
- ---------------------------------------------------------------------------------------------------
1.02 Long-term receivables 977,242 924,323
- ---------------------------------------------------------------------------------------------------
1.02.01 Sundry receivables 894,745 844,680
- ---------------------------------------------------------------------------------------------------
1.02.01.01 Consumers and concessionaires 240,611 243,741
- ---------------------------------------------------------------------------------------------------
1.02.01.03 Tax credits 274,944 270,881
- ---------------------------------------------------------------------------------------------------
1.02.01.04 Judicial deposits 155,668 148,704
- ---------------------------------------------------------------------------------------------------
1.02.01.05 Deposits in guarantee 5,805 6,299
- ---------------------------------------------------------------------------------------------------
1.02.01.06 Unamortized borrowing costs 1,345 1,537
- ---------------------------------------------------------------------------------------------------
1.02.01.07 Prepaid expenses 194,358 154,032
- ---------------------------------------------------------------------------------------------------
1.02.01.08 Other 22,014 19,486
- ---------------------------------------------------------------------------------------------------
1.02.02 Related parties 82,497 79,643
- ---------------------------------------------------------------------------------------------------
1.02.02.01 Associated companies 0 0
- ---------------------------------------------------------------------------------------------------
1.02.02.02 Subsidiaries 82,497 79,643
- ---------------------------------------------------------------------------------------------------
1.02.02.03 Other related parties 0 0
- ---------------------------------------------------------------------------------------------------
1.02.03 Other 0 0
- ---------------------------------------------------------------------------------------------------
1.03 Permanent assets 1,873,601 1,857,792
- ---------------------------------------------------------------------------------------------------
1.03.01 Investments 351,171 354,775
- ---------------------------------------------------------------------------------------------------
1.03.01.01 Associated companies 0 0
- ---------------------------------------------------------------------------------------------------
1.03.01.02 Subsidiaries 348,507 352,122
- ---------------------------------------------------------------------------------------------------
1.03.01.03 Other 2,664 2,653
- ---------------------------------------------------------------------------------------------------
1.03.02 Property and equipment 1,522,430 1,503,017
- ---------------------------------------------------------------------------------------------------
1.03.03 Deferred charges 0 0
- ---------------------------------------------------------------------------------------------------
64
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
06.02 - Consolidated Balance Sheet - Liabilities and Stockholders' Equity (R$
thousand)
- -------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 9/30/2004 4 - 6/30/2004
- -------------------------------------------------------------------------------------------------
2 Total liabilities and stockholders' equity 3,736,136 3,619,411
- -------------------------------------------------------------------------------------------------
2.01 Current liabilities 913,102 816,877
- -------------------------------------------------------------------------------------------------
2.01.01 Loans and financing 480,689 453,706
- -------------------------------------------------------------------------------------------------
2.01.01.01 Principal 447,495 386,491
- -------------------------------------------------------------------------------------------------
2.01.01.02 Debt charges 33,194 67,215
- -------------------------------------------------------------------------------------------------
2.01.02 Debentures 0 0
- -------------------------------------------------------------------------------------------------
2.01.03 Suppliers 165,641 151,401
- -------------------------------------------------------------------------------------------------
2.01.04 Taxes, charges and contributions 67,930 67,617
- -------------------------------------------------------------------------------------------------
2.01.05 Dividends payable 42,053 42,053
- -------------------------------------------------------------------------------------------------
2.01.06 Provisions 26,849 21,856
- -------------------------------------------------------------------------------------------------
2.01.06.01 Tax contingency 0 0
- -------------------------------------------------------------------------------------------------
2.01.06.02 Payroll charges 26,849 21,856
- -------------------------------------------------------------------------------------------------
2.01.07 Payables to related parties 0 0
- -------------------------------------------------------------------------------------------------
2.01.08 Other 129,940 80,244
- -------------------------------------------------------------------------------------------------
2.01.08.01 Consumer charges payable 20,989 18,897
- -------------------------------------------------------------------------------------------------
2.01.08.02 Public lighting tariff 6,822 7,682
- -------------------------------------------------------------------------------------------------
2.01.08.03 Post-employment benefits 2,143 2,090
- -------------------------------------------------------------------------------------------------
2.01.08.04 Payroll 2,812 3,034
- -------------------------------------------------------------------------------------------------
2.01.08.05 Deferred income tax and social contribution 24,881 24,779
- -------------------------------------------------------------------------------------------------
2.01.08.06 Provision for tariff reduction 49,594 0
- -------------------------------------------------------------------------------------------------
2.01.08.07 Other 22,699 23,762
- -------------------------------------------------------------------------------------------------
2.02 Long-term liabilities 2,229,340 2,308,337
- -------------------------------------------------------------------------------------------------
2.02.01 Loans and financing 1,757,524 1,885,780
- -------------------------------------------------------------------------------------------------
2.02.02 Debentures 0 0
- -------------------------------------------------------------------------------------------------
2.02.03 Provisions 222,070 214,061
- -------------------------------------------------------------------------------------------------
2.02.03.01 Contingencies 222,070 214,061
- -------------------------------------------------------------------------------------------------
2.02.04 Payables to related parties 1 0
- -------------------------------------------------------------------------------------------------
2.02.04.01 Subsidiaries 1 0
- -------------------------------------------------------------------------------------------------
2.02.05 Other 249,745 208,496
- -------------------------------------------------------------------------------------------------
2.02.05.02 Deferred income tax and social contribution 92,093 59,696
- -------------------------------------------------------------------------------------------------
2.02.05.03 Suppliers 87,693 80,565
- -------------------------------------------------------------------------------------------------
2.02.05.04 Post-employment benefits 30,253 30,253
- -------------------------------------------------------------------------------------------------
2.02.05.05 Debt charges 180 288
- -------------------------------------------------------------------------------------------------
2.02.05.06 Other 39,526 37,694
- -------------------------------------------------------------------------------------------------
2.03 Deferred income 0 0
- -------------------------------------------------------------------------------------------------
2.04 Minority interest 188,261 169,752
- -------------------------------------------------------------------------------------------------
2.05 Stockholders' equity 405,433 324,445
- -------------------------------------------------------------------------------------------------
2.05.01 Paid-in capital 153,947 153,947
- -------------------------------------------------------------------------------------------------
2.05.02 Capital reserves 69,074 69,074
- -------------------------------------------------------------------------------------------------
2.05.02.01 Interest on construction in progress 65,687 65,687
- -------------------------------------------------------------------------------------------------
2.05.02.02 Funds for capital increase 3,387 3,387
- -------------------------------------------------------------------------------------------------
65
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
06.02 - Consolidated Balance Sheet - Liabilities and Stockholders' Equity (R$
thousand)
- -------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 9/30/2004 4 - 6/30/2004
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
2.05.03 Revaluation reserves 0 0
- -------------------------------------------------------------------------------------------------
2.05.03.01 Own assets 0 0
- -------------------------------------------------------------------------------------------------
2.05.03.02 Subsidiary/associated companies' assets 0 0
- -------------------------------------------------------------------------------------------------
2.05.04 Revenue reserves 134,908 134,908
- -------------------------------------------------------------------------------------------------
2.05.04.01 Legal 8,847 8,847
- -------------------------------------------------------------------------------------------------
2.05.04.02 Statutory 0 0
- -------------------------------------------------------------------------------------------------
2.05.04.03 Contingencies 0 0
- -------------------------------------------------------------------------------------------------
2.05.04.04 Unrealized profits 0 0
- -------------------------------------------------------------------------------------------------
2.05.04.05 Retention of profits 126,061 126,061
- -------------------------------------------------------------------------------------------------
2.05.04.06 Special for undistributed dividends 0 0
- -------------------------------------------------------------------------------------------------
2.05.04.07 Other 0 0
- -------------------------------------------------------------------------------------------------
2.05.05 Retained earnings/accumulated deficit 47,504 (33,484)
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
66
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
07.01 - Consolidated Statement of Operations (R$ thousand)
- ------------------------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 7/1/2004 to 4 - 1/1/2004 to 5 - 7/1/2003 to 6 - 1/1/2003 to
9/30/2004 9/30/2004 9/30/2003 9/30/2003
- ------------------------------------------------------------------------------------------------------------------------------------
3.01 Gross sales and/or services revenue 558,287 1,756,718 523,741 1,503,545
- ------------------------------------------------------------------------------------------------------------------------------------
3.01.01 Energy supply 480,635 1,552,060 475,943 1,365,896
- ------------------------------------------------------------------------------------------------------------------------------------
3.01.02 Energy sales 7,429 23,616 10,132 22,172
- ------------------------------------------------------------------------------------------------------------------------------------
3.01.03 Emergency capacity charge 24,141 76,031 17,424 49,145
- ------------------------------------------------------------------------------------------------------------------------------------
3.01.04 Other revenues 46,082 105,011 20,242 66,332
- ------------------------------------------------------------------------------------------------------------------------------------
3.02 Deductions (145,833) (515,073) (147,820) (424,375)
- ------------------------------------------------------------------------------------------------------------------------------------
3.02.01 RGR quota (7,491) (22,541) (7,621) (21,096)
- ------------------------------------------------------------------------------------------------------------------------------------
3.02.02 ICMS (122,361) (363,337) (102,353) (295,778)
- ------------------------------------------------------------------------------------------------------------------------------------
3.02.03 PIS 7,176 (4,032) (4,346) (12,082)
- ------------------------------------------------------------------------------------------------------------------------------------
3.02.04 COFINS 1,031 (49,016) (16,042) (45,810)
- ------------------------------------------------------------------------------------------------------------------------------------
3.02.05 Emergency capacity charges (24,141) (76,031) (17,424) (49,145)
- ------------------------------------------------------------------------------------------------------------------------------------
3.02.06 ISSQN (47) (116) (34) (464)
- ------------------------------------------------------------------------------------------------------------------------------------
3.03 Net sales and/or services revenue 412,454 1,241,645 375,921 1,079,170
- ------------------------------------------------------------------------------------------------------------------------------------
3.04 Cost of sales and/or services (313,492) (936,606) (294,008) (836,087)
- ------------------------------------------------------------------------------------------------------------------------------------
3.04.01 Electric energy costs (219,208) (625,393) (199,108) (558,122)
- ------------------------------------------------------------------------------------------------------------------------------------
3.04.02 Operating costs (62,355) (207,804) (69,430) (198,603)
- ------------------------------------------------------------------------------------------------------------------------------------
3.04.03 Other operating expenses (31,929) (103,409) (25,470) (79,362)
- ------------------------------------------------------------------------------------------------------------------------------------
3.05 Gross profit 98,962 305,039 81,913 243,083
- ------------------------------------------------------------------------------------------------------------------------------------
3.06 Operating expenses/income 13,010 (209,504) (93,269) 70,312
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.01 Selling (188) (418) (181) (1,709)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.02 General and administrative (41,625) (94,629) (26,158) (87,583)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03 Financial, net 54,823 (114,457) (66,930) 159,604
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.01 Financial income 19,026 106,360 49,966 157,065
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.01.01 Income from financial investments (7,889) 22,596 11,552 49,469
- ------------------------------------------------------------------------------------------------------------------------------------
67
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
07.01 - Consolidated Statement of Operations (R$ thousand)
- ------------------------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 7/1/2004 to 4 - 1/1/2004 to 5 - 7/1/2003 to 6 - 1/1/2003 to
9/30/2004 9/30/2004 9/30/2003 9/30/2003
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.01.02 Arrears interest on electric energy bills 7,732 25,249 7,256 21,557
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.01.03 Hedge 0 0 0 (2,176)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.01.04 Regulatory asset - SELIC 19,203 51,267 30,680 75,852
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.01.05 Other (20) 7,248 478 12,363
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.02 Financial expenses 35,797 (220,817) (116,896) 2,539
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.02.01 Arrears interest on purchased energy (1,336) (1,464) (6,099) (19,220)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.02.02 Debt charges (67,969) (189,876) (67,582) (206,188)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.02.03 Monetary and exchange variations 118,772 11,600 (27,246) (275,788)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.03.02.04 Other (13,670) (41,077) (15,969) (47,841)
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.04 Other operating income 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.05 Other operating expenses 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.06.06 Equity in the results of subsidiaries 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.07 Operating profit (loss) 111,972 95,535 (11,356) (313,395)
- ------------------------------------------------------------------------------------------------------------------------------------
3.08 Non-operating results (3,508) (8,355) (1,653) (26,173)
- ------------------------------------------------------------------------------------------------------------------------------------
3.08.01 Income 1,046 2,660 301 708
- ------------------------------------------------------------------------------------------------------------------------------------
3.08.02 Expenses (4,554) (11,015) (1,954) (26,881)
- ------------------------------------------------------------------------------------------------------------------------------------
3.09 Profit (loss) before taxes and profit sharing 108,464 87,180 (13,009) 287,222
- ------------------------------------------------------------------------------------------------------------------------------------
3.10 Provision for income tax and social contribution (8,529) (13,026) (615) (120,431)
- ------------------------------------------------------------------------------------------------------------------------------------
3.10.01 Social contribution (2,164) (2,341) 124 (30,454)
- ------------------------------------------------------------------------------------------------------------------------------------
3.10.02 Income tax (6,365) (10,685) (739) (89,977)
- ------------------------------------------------------------------------------------------------------------------------------------
3.11 Deferred income tax 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.12 Statutory profit sharing and contributions 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.12.01 Profit sharing 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.12.02 Contributions 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
3.13 Reversal of interest on own capital 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------------------
68
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
07.01 - Consolidated Statement of Operations (R$ thousand)
- ------------------------------------------------------------------------------------------------------------------------------------
1 - Code 2 - Description 3 - 7/1/2004 to 4 - 1/1/2004 to 5 - 7/1/2003 to 6 - 1/1/2003 to
9/30/2004 9/30/2004 9/30/2003 9/30/2003
- ------------------------------------------------------------------------------------------------------------------------------------
3.14 Minority interest (18,947) (26,650) (2,309) 536
- ------------------------------------------------------------------------------------------------------------------------------------
3.15 Net income (loss) for the period 80,988 47,504 (15,933) 167,327
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares (thousand), excluding Treasury 4,551 4,551 4,551 4,551
stock
- ------------------------------------------------------------------------------------------------------------------------------------
Net income per share 17.79565 10.43815 36.76708
- ------------------------------------------------------------------------------------------------------------------------------------
Loss per share (3.50099)
- ------------------------------------------------------------------------------------------------------------------------------------
69
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
08.01 - Comments on Consolidated Performance
- --------------------------------------------------------------------------------
Information on consolidated performance is presented in Group 05.01 of the
parent company and the subsidiary ENERSUL.
70
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
09.01 - Investments in Subsidiary and/or Associated Companies
- ------------------------------------------------------------------------------------------------------------------------------------
1 - 2 - NAME OF THE SUBSIDIARY/ 3 - NATIONAL CORPORATE 4 - CLASSIFICATION 5- % HOLDING IN THE 6 - % OF THE
ITEM ASSOCIATED COMPANY TAXPAYERS' REGISTRY CAPITAL OF THE STOCKHOLDERS' EQUITY
(CNPJ) INVESTEE THE INVESTOR
- ------------------------------------------------------------------------------------------------------------------------------------
7 - TYPE OF COMPANY 8 - NUMBER OF SHARES HELD IN THE 9 - NUMBER OF SHARES HELD IN THE
CURRENT QUARTER (THOUSANDS) PRIOR QUARTER (THOUSANDS)
- ------------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
01 MAGISTRA PARTICIPACOES S.A. 01.775.954/0001-39 Unlisted subsidiary 100.00 0.01
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial, commercial and other 473,203 473,203
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
02 EMPRESA ENERGETICA DE MATO 15.413.826/0001-50 Listed subsidiary 65.20 54.78
GROSS DO SUL
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial, commercial and other 53,137,012 53,137,012
- -----------------------------------------------------------------------------------------------------------------------------------
71
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
17.01 - Report on the Special Review - Without Exception
- --------------------------------------------------------------------------------
Report of Independent Accountants on the Limited Review of Quarterly
Information
To the Board of Directors and Stockholders
Espirito Santo Centrais Eletricas S.A.
1 We have carried out limited reviews of the accounting information included
in the Quarterly Information (ITR) of Espirito Santo Centrais Eletricas
S.A. - ESCELSA and of Espirito Santo Centrais Eletricas S.A. - ESCELSA and
its subsidiaries for the quarters and periods ended September 30 and June
30, 2004. This information is the responsibility of the Company's
management.
2 Our reviews were carried out in accordance with specific standards
established by the Institute of Independent Auditors of Brazil (IBRACON),
in conjunction with the Federal Accounting Council (CFC), and mainly
comprised: (a) inquiries of and discussions with management responsible for
the accounting, financial and operating areas of the Company with regard to
the main criteria adopted for the preparation of the quarterly information
and (b) a review of the significant information and of the subsequent
events which have, or could have, significant effects on the Company's
financial position and operations.
3 Based on our limited reviews, we are not aware of any material
modifications that should be made to the quarterly information referred to
above in order that such information be stated in accordance with the
accounting practices adopted in Brazil applicable to the preparation of
quarterly information, consistent with the Brazilian Securities Commission
(CVM) regulations.
- --------------------------------------------------------------------------------
72
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
17.01 - Report on the Special Review - Without Exception
- --------------------------------------------------------------------------------
4 The Quarterly Information also includes accounting information relating to
the operations for the quarter and period ended September 30, 2003,
presented for comparison purposes. The limited review of the Quarterly
Information (ITR) for that quarter and period was conducted by other
independent accountants who issued a report thereon dated October 21, 2003,
without any qualifications.
Vitoria, October 22, 2004
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5 "S" ES
Luiz Marcio Malzone Ronaldo Matos Valino
Contador CRC 1RJ031376/O-2 "S" ES Contador CRC 1RJ069958/O-2 "S" ES
- --------------------------------------------------------------------------------
73
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
19.01 - Description of Changed Information
- --------------------------------------------------------------------------------
Change in Group 05.01 - Comments on Company Performance in the table "Effects of
non-recurring events on the results".
74
(A free translation of the original in Portuguese) Unaudited
FEDERAL GOVERNMENT SERVICE
BRAZILIAN SECURITIES COMMISSION (CVM) Corporate Legislation
QUARTERLY INFORMATION (ITR) September 30, 2004
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
- ------------------------------------------------------------------------------------------------------------------
01 - IDENTIFICATION
- ------------------------------------------------------------------------------------------------------------------
1 - CVM CODE 2 - COMPANY NAME 3 - National Corporate Taxpayers' Registry (CNPJ)
- ------------------------------------------------------------------------------------------------------------------
01534-2 Espirito Santo Centrais Eletricas S.A. 28.152.650/0001-71
- ------------------------------------------------------------------------------------------------------------------
INDEX
- ---------------------------------------------------------------------------------------------
GROUP TABLE DESCRIPTION PAGE
- ---------------------------------------------------------------------------------------------
01 01 Identification 1
- ---------------------------------------------------------------------------------------------
01 02 Head Office 1
- ---------------------------------------------------------------------------------------------
01 03 Investor Relations Officer (Company Mail Address) 1
- ---------------------------------------------------------------------------------------------
01 04 General Information/Independent Accountant 1
- ---------------------------------------------------------------------------------------------
01 05 Capital Composition 2
- ---------------------------------------------------------------------------------------------
01 06 Characteristics of the Company 2
- ---------------------------------------------------------------------------------------------
01 07 Companies Excluded from the Consolidated Financial Statements 2
- ---------------------------------------------------------------------------------------------
01 08 Dividends Approved and/or Paid 2
- ---------------------------------------------------------------------------------------------
01 09 Subscribed Capital and Alterations in the Current Year 3
- ---------------------------------------------------------------------------------------------
01 10 Investor Relations Officer 3
- ---------------------------------------------------------------------------------------------
02 01 Balance Sheet - Assets 4
- ---------------------------------------------------------------------------------------------
02 02 Balance Sheet - Liabilities and Stockholders' Equity 5
- ---------------------------------------------------------------------------------------------
03 01 Statement of Operations 7
- ---------------------------------------------------------------------------------------------
04 01 Notes to the Quarterly Information 9
- ---------------------------------------------------------------------------------------------
05 01 Comments on Company Performance 50
- ---------------------------------------------------------------------------------------------
06 01 Consolidated Balance Sheet - Assets 64
- ---------------------------------------------------------------------------------------------
06 02 Consolidated Balance Sheet - Liabilities and Stockholders' Equity 65
- ---------------------------------------------------------------------------------------------
07 01 Consolidated Statement of Operations 67
- ---------------------------------------------------------------------------------------------
08 01 Comments on Consolidated Performance 70
- ---------------------------------------------------------------------------------------------
09 01 Investments in Subsidiary and/or Associated Companies 71
- ---------------------------------------------------------------------------------------------
17 01 Report on the Special Review 72
- ---------------------------------------------------------------------------------------------
Magistra Participacoes S.A.
- ---------------------------------------------------------------------------------------------
Empresa Energetica de Mato Grosso do Sul
- ---------------------------------------------------------------------------------------------
19 01 Description of Changed Information 74
- ---------------------------------------------------------------------------------------------
75