2Q15 EARNINGS RESULTS

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1 2Q15 EARNINGS RESULTS São Paulo, August 4, 2015 HIGHLIGHTS OF THE PERIOD, AND SUBSEQUENT EVENTS: Agreement signed between Renova and SunEdison / TerraForm Global. Contract signed for SunEdison to buy shares in Renova held by Light Energia, and enter the controlling stockholding block of Renova. First full year of operation of the wind farms commercialized on LER 2009 auction generation 10.8% higher than power volume sold. Alto Sertão III projects timetable Status of Phase A. 2Q15 net operational revenue R$ million up 109.4% year-on-year. INVESTOR RELATIONS OFFICE Pedro Pileggi Vice-president for Finance, Business Development and Investor Relations Flávia Carvalho Investor Relations Manager Thatiana Zago Investor Relations Analyst +55 (11) /1174 MEDIA OFFICE Josy Alves - (11) Q15 EBITDA R$ 58.2 million up 149.3% from 2Q14 with EBITDA margin 48.7%. STOCK PRICE AT AUGUST 3, 2015: RNEW11 = R$ 32.10/Unit MARKET VALUE ON BM&FBOVESPA R$ 3,410.9 billion 1

2 INDEX 1. About Renova.2 2. Message from management 4 3. Highlights in detail Renova s power trading company 9 5. Consolidated profit and loss account.9 6. Cash flow Main indicators of the financial statements Stock price performance Stockholding structure Glossary ABOUT RENOVA ENERGIA Renova Energia S.A. ( Renova, or the Company ) generates electric power from renewable sources, focusing on wind farms, small hydroelectric plants (SHPs) and solar energy. It is the largest company generating electricity from renewable sources in Brazil, by contracted installed capacity. It has been prospecting, developing and implementing projects to generation power from renewable sources for 13 years having invested to build a highly qualified multidisciplinary team of experienced electricity sector professionals over this period. It has placed 1,609.1 MW of contracted power in Brazil s regulated market and 1,239.9 MW in the country s Free Market a total of 2,849.0 MW. RENOVA INSTALLED GENERATING CAPACITY (MW) 2, , , , , , , , , In operation SHP Wind Solar 2

3 Parks Source Complex Installed Capacity (MW) Energy Sold (avg MW) Number of wind farms Start of the contract LER Wind Alto Sertão I Jul-12 LER 2010 Wind Alto Sertão II Oct-14 LEN A Wind Alto Sertão II Mar 6 /Sep-15 2 LEN A Wind Alto Sertão III - Fase A Jan-17 LER 2013 Wind Alto Sertão III - Fase A Sep LEN A Wind Umburanas May-18 LEN A Wind Umburanas Jan-19 LER 2014 Wind Alto Sertão Oct-17 LER Solar Alto Sertão Oct-17 ESPRA SHP Brasil PCH 4 SHP /2009 REGULATED MARKET - - 1, Light I Wind Alto Sertão III - Fase A Sep-15 2 /Jan-16 Light II Wind Alto Sertão III - Fase B Sep-16 Mercado Livre I Wind Alto Sertão III - Fase B Jan-16 Mercado Livre II Wind Alto Sertão III - Fase B Jan-17 Mercado Livre III Wind Alto Sertão III - Fase A Sep PPA Cemig 5 Wind Jacobina TBD Sep-18 Híbrido Solar Alto Sertão FREE MARKET - - 1, TOTAL - - 2, , ¹ Contracted under the LER 2009 (reserve auction); ready for operation since July ² Projects awaiting transmission lines. ³ Refers to 50% equity interest, reflecting the joint venture with SunEdison. 4 This figure is for Renova s 51% interest. 5 Reflects 100% participation in the project, since Cemig did not exercise its right to acquire 50% of the assets. 6 Of the nine wind farm complexes established under the LEN (new energy) A auction, four have started commercial operation on March 4, 2015; and the other five are awaiting their transmission lines. For all these, the start date of the supply contract has been adjusted ( synchronized ) to coincide with the start date of operation of the transmission lines. 3

4 2. MESSAGE FROM MANAGEMENT Renova has just taken one more important step in maintaining its leadership in the development of renewable energy projects in Brazil: Signature of an agreement with TerraForm Global and SunEdison, to increase its competitiveness, value creation and growth capacity. The first phase of the agreement comprised signature of share purchase contracts for sale of the assets of ESPRA (three SHPs with a total of 41.8 MW installed capacity), and the assets of the Bahia project (five wind farms contracted for construction in the 2009 Reserve Energy auction, with 99.2 MW of installed capacity), for R$ 587.0mn. Also in the first phase was signature of a contract to exchange shares in the assets of the Salvador project (nine wind farms which placed power supply in the LER 2009 auction, with MW of installed capacity), for a total value of R$ billion receivable by the Company in the form of shares in TerraForm Global. The second phase of this agreement includes signature of contracts to exchange further shares in TerraForm Global for contracted assets of Renova with long-term Power Purchasing Agreements for total installed capacity of 2,204.2 MW, totaling enterprise value of R$ 13.4 billion. Also negotiated in this second phase is an option contract, in which TerraForm Global will have a first refusal option to acquire any renewable energy projects to be developed by the Company that sell power in long-term contracts. Also under the contract and subject to its conditions, Renova will have the right to appoint a member of the Board of Directors of TerraForm Global. With this agreement includes the Company will recycle the capital invested, at an attractive and predictable cost; and new options in the future for financing based on exchange contracts, and on the shares to be received from TerraForm Global. Also, the dividends that Renova will receive from TerraForm Global will be a source of funding for Renova s multiple growth possibilities. TerraForm Global is a globally diversified company, oriented to payment of growing dividends, created to hold and operate clean power generation assets in emerging markets where there is high growth. SunEdison is the controlling stockholder of TerraForm Global. SunEdison has also signed a share purchase agreement to acquire the shares in Renova owned by Light Energia. As a result of this, Renova will have all the expertise of SunEdison the world s largest developer of renewable energy within its controlling stockholding block. Renova remains committed to quality in all its works and operations. The works on the Alto Sertão III wind complexes continue to make progress. The transmission line that connects some of the wind farms is delayed, and Renova is negotiating with the parties involved and considering market options to mitigate the negative impact of this delay. On the operational side, the wind farms contracted in the LER 2009 auction have now been operating for one year, generating in accordance with the Company s expectations, but at a rate 10% higher than the level of power placed in the auction. The Company also continues to operate the wind farms that placed their contracted output in the LER 2010 auctions, and those contracted in the LEN A auction, which are connected, and continues to have confidence in further progress of alternative electricity sources in Brazil. 4

5 3. HIGHLIGHTS IN DETAIL: 3.1. Agreement signed between Renova and SunEdison / TerraForm Global On July 15, 2015 Renova took one more important step in its history, concluding the agreement for contribution of assets to TerraForm Global, Inc. ( TerraForm Global ). This transaction both inaugurates a new way for Brazilian electricity companies to raise funding and also places Renova once again in an outstanding strategic position in the renewable energy market. The model of the transaction will enable capital to be recycled at lower and more predictable costs, sustaining the full execution of the Company s business plan. The transaction is divided into two phases. The first phase, announced on May 7, 2015, involved signature of the following contracts: (i) Share purchase agreement for the sale of the assets of the ESPRA project, corresponding to three Small Hydroelectric Plants with aggregate installed capacity of 41.8 MW and supply contracts in place under the Proinfa program, for equity valuation of R$ 136 million, to be paid in cash. (ii) A share purchase agreement for sale of the assets of the Bahia project: five wind farms that placed supply in the LER 2009, with 99.2 MW of installed capacity, assessed at equity value of R$ 451 million, to be paid in cash. (iii) An agreement to exchange the shares of the Company s subsidiaries that hold assets of the Salvador project nine wind farms that placed supply in the LER 2009, with MW of installed capacity, with equity value of R$ billion for shares in TerraForm Global, on the basis of the price per share paid in the IPO held by TerraForm Global on July 31, The amounts referred to above are subject to adjustments specified in each contract. The second phase of the transaction was announced on July 15, and deals with other assets that have long-term electricity sale contracts, both operational and not yet operational ( the backlog ), and also projects in development or to be developed by the Company that sell power supply in long-term contracts in the future ( the pipeline ). This phase includes signature of the following contracts: (i) A share exchange contract in which shares in the subsidiaries of the Company that own the assets of each project of the backlog, as listed below, are exchanged at the Company s enterprise value (i.e. including debt in the valuation of the asset), of R$ 13.4 billion. The amounts will be adjusted on the date of exchange in accordance with applicable terms of the contracts. The assets, with installed capacity for 2,204.2 MW, will be exchanged after starting commercial operation and in accordance with the timetable below negotiated by the parties. Renova will receive the corresponding amount in shares of TerraForm Global based on the average market trading price in the 30 trading sessions prior to the closing date. 5

6 Asset Installed capacity (MW) Year of exchange Light I Light II LEN A LER LEN A LER 2014 wind LER solar¹ LER PPA Cemig² LEN A LEN A ¹ Refers to 50% of the PPA, reflecting the joint venture with SunEdison. ² Reflects 100% of the Cemig PPA, since Cemig did not exercise its right to acquire 50% of the asset. (ii) A contract giving TerraForm Global, until December 31, 2016, an option and first refusal to purchase any renewable energy projects that the Company has in development and /or to be developed that sell power supply under long-term contracts. The quantity of shares of TerraForm Global to be received by Renova will be determined based on a multiple of the cash available for distribution from each project in the years subsequent to the transfer, in accordance with a model agreed between the parties. After this period, the parties will negotiate a new mechanism for the purchase option and first refusal right on acquisition of the projects, intended to reflect the market conditions and the Company s competitiveness. It was also agreed that subject to certain conditions of the contract, Renova will have the right to appoint a member of the Board of Directors of TerraForm Global. As well as the advantages set out above, the objective of the transaction is to increase Renova s competitiveness, value creation and capacity for growth. With this transaction, Renova will have further new options for financing based on the contracts for exchange of the backlog and on the shares in Terraform Global received as payment, strengthening the capital structure for the development of the projects. 6

7 3.2. Contract signed for SunEdison to buy shares in Renova held by Light Energia, and enter the controlling stockholding block of Renova On July 2, Light Energia S.A. announced that its Board of Directors had approved the share purchase agreement for sale of the shares in Renova held by Light Energia S.A. ( Light ) to SunEdison, Inc. ( SunEdison ). The contract was signed on July 15, and the amount to be paid for the 50,561,797 common shares is US$250,000,000.00, equivalent to US$14.83 per Unit. Completion of this transaction is subject to certain conditions precedent, including: regulatory approvals, waivers of restrictions on transfer of shares, first refusal rights, and joint sale, under existing Stockholders Agreements. On conclusion of the agreement, SunEdison will adhere to the existing Stockholders Agreement of the Company and will be part of the controlling stockholding block of Renova. It is important to note that this transaction will not result in disposal of control, neither direct nor indirect, of the Company, nor in acquisition of the power of control of the Company by SunEdison. New stockholding structure after entry of SunEdison into the controlling stockholder block: RENOVA ENERGIA ON Shares PN Shares Total Shares Controlling shareholder block 188,309, % - 0.0% 188,309, % RR Participações 50,561, % - 0.0% 50,561, % SunEdison 50,561, % - 0.0% 50,561, % Cemig GT 87,186, % - 0.0% 87,186, % Other stockholders 48,534, % 81,889, % 130,345, % RR Participações* 8,250, % 1,280, % 9,530, % BNDESPAR 9,311, % 18,622, % 27,934, % InfraBrasil 11,651, % 23,302, % 34,954, % FIP Caixa Ambiental 5,470, % 10,940, % 16,410, % Others 13,890, % 27,742, % 41,515, % Total 236,883, % 81,889, % 318,772, % * Holding of RR Participações outside the controlling block Nota: Bloco de controle considera ações sujeitas ao acordo de acionistas 3.3. First full year of operation of the wind farms commercialized on LER 2009 auction generation 10.8% higher than power volume sold. The 14 wind farms that commercialized on LER 2009 auction have completed one year of operation. They were declared ready to operate as from July 2012, but with the delay in the transmission line, they started commercial operation only in July The volume of electricity that they placed in the initial auction was MW average; but in this first year they generated MW a level of generation 10.8% higher than the level contracted. 7

8 The capacity factor was 48%, close to the P50 estimate for these wind farms. Also, in this first year of operation there were some non-recurring events, such as disconnections of rotors to make possible the connection of other wind farms to the same transmission line. There are reimbursement clauses (constrained off clauses) in the contract for these events, and the amounts will be calculated by Aneel LER % MWm Q14 4Q14 1Q15 2Q15 Avg Generated energy Sold¹ Capacity factor ¹ Volume sold has been seasonalized in accordance with the contract Alto Sertão III projects timetable Status of Phase A Some of the Company s projects of Phase A of Alto Sertão III were scheduled for inauguration in September According to Aneel s SIGET transmission line scheduling publication, however the transmission line that will connect these wind farms is planned for September 30, The Company is taking measures for this to cause the minimum possible impact. In the case of Light I, with installed capacity of MW, and a power output of MW average currently contracted, two-thirds of the contract was renegotiated for supply to start in January One-third of the contract maintains the 2015 date, and the Company has bought backup supply to make good the energy needs. The price of electricity is declining, since the hydrological situation has improved, with higher than average rainfall in the South and Southeast; there are signs of reduction in the load forecasts produced by the National System Operator (ONS), and there are attempts to decide on a regulatory solution for the GSF (Generation Scaling Factor) of the large generation companies. For the Mercado Livre III wind farm, with installed capacity of 32.4 MW and a total of 15.0 MW average contracted, the Company is also negotiating purchase of backup supply. For the facilities that were built under the LER 2013 auction, with installed capacity of MW and a total of 73.7 MW average contracted, the Company is studying the alternative solutions. 8

9 4. RENOVA S POWER TRADING COMPANY Renova created its power trading company to manage its portfolio and mitigate risks. In the second quarter of 2015 Renova Comercializadora de Energia S.A. ( Renova Comercializadora, or RC ) transacted electricity contracts generating revenue of R$ 2.3 million, with electricity purchase costs of R$ 2.6mn. With other costs, principally of personnel and consultancy, RC reported a loss of R$ 25,000 (twenty-five thousand Reais) for the quarter. RC s result in the half-year is a loss of R$ 0.5 million. Renova Comercializadora S.A. R$ 000 2Q15 2Q14 Change 1H15 1H14 Change Net revenue 2,595 5, % 4,909 5, % Purchase of electricity (2,595) (3,393) -23.5% (5,161) (3,393) -52.1% Other costs (83) (2,058) -96.0% (366) (2,058) -82.2% Financial revenue (expenses) Net profit (25) (28) 12.0% (511) (28) % 5. CONSOLIDATED PROFIT AND LOSS ACCOUNT Renova Energia S.A. R$ 000 2Q15 2Q14 Change 1H15 1H14 Change Gross operational revenue 124,064 59, % 231, , % (-) Taxes - PIS, Cofins and ICMS (4,530) (2,502) 81.1% (8,737) (4,519) 93.3% Net operational revenue 119,534 57, % 222, , % Non-Manageable Costs Total (5,903) (2,627) 124.7% (11,922) (4,975) 139.6% Manageable Costs (19,722) (7,458) 164.4% (30,294) (7,011) 332.1% Depreciation (21,256) (17,348) 22.5% (52,902) (34,861) 51.8% Operational profit 72,653 29, % 127,459 63, % Administrative Expenses (31,198) (20,416) 52.8% (56,646) (32,924) 72.1% Administrative Depreciation (577) (424) 36.1% (1,300) (734) 77.1% Financial revenues (expenses) (46,376) (5,967) 677.2% (91,528) (23,655) 286.9% Equity gain (loss) in subsidiaries (4,474) (3,233) 38.4% (2,765) (6,211) -55.5% Amortization of goodwill (9,077) - - (18,152) - - Income Tax and Social Contribution Tax (8,238) (2,944) 179.8% (13,476) (6,391) 110.9% Net profit (loss) (27,287) (3,322) 721.4% (56,408) (6,066) 829.9% Net margin -22.8% -5.8% p.p % -5.5% p.p. 9

10 5.1. Consolidated net operational revenue Renova reports net operational revenue in 2Q15 of R$ million an increase of 109.4% from 2Q14. Renova Energia S.A. R$ 000 2Q15 2Q14 Change 1H15 1H14 Change Net revenue Wind power 110,669 48, % 205,693 96, % Net revenue SHPs 6,191 3, % 11,752 8, % Net revenue Solar power % % Net revenue Power trading 2,595 5, % 4,909 5,423 - Net operational revenue 119,534 57, % 222, , % The higher revenue is primarily higher revenue from the wind farms up 130.0% year-on-year, with the start of operation of two groups of wind farms: the plants contracted at the LER 2010 Auction, as from October 2014; and four complexes contracted at the LEN A auction, in March of this year. Both these revenue sources were not yet in existence in the second quarter of last year. In this quarter there were also financial adjustments applied to generation by the wind farms, in the amount of R$ 23.5 million, since the complexes built under the LER 2009 and LER 2010 auctions generated a higher volume of output than the volume contracted, and there were also adjustments to the LER 2009 auction, accounted in the transition period between the facilities being ready to operate and commercial operation. The revenue from the Small Hydro Plant (SHPs) was 79.1% higher than in 2Q14 this continues to be affected by the provision of R$ 2.3 million for the financial adjustment resulting from trading on the CCEE of output by Renova s SHPs. In this quarter, however, the provision was lower than in 2Q14 (when it was R$ 7.5mn). Two of Renova s SHPs Cachoeira da Lixa and Colino I are included in the Energy Reallocation Mechanism (ERM). This mechanism makes an accounting reallocation of the total volume of electricity generated in the country, transferring the excess of those that generated more than their physical guarantee to those that generated less. Since the MRE plants generated less than their aggregate physical guarantee and the spot price is high due to the thermal plants having been activated, the Company made a provision in the amount of its portion of the adjustment of the accounting of the ERM amounts. The financial settlement of these amounts takes place only in the following year, after the accounting of the whole of the current year. The Colino II SHP is outside the ERM, and either receives or reimburses to Eletrobras depending on its generation output. In this quarter there was also revenue from solar power due to development of a distributed generation project. Finally, the revenue from trading in the quarter was R$ 2.6 million, 52.1% lower than in 2Q14. In the half year, net operational revenue was R$ million, or 101.1% higher than in 1H2014. The variation mainly refers to the start of operation of the wind farms built under the LER 2010 and LEN A auctions, as noted above. 10

11 5.2. Consolidated costs Electricity production costs are separated into manageable, and non-manageable, components. Non-manageable costs are: (i) The tariff for use of the distribution system (TUSD), for the use of the distribution system of Coelba the concession holder to which the SHPs are connected and the tariff for use of the transmission system (TUST), for the transmission lines and substations of the wind farms; and (ii) the inspection charge made by Aneel. These costs are related to the small hydro plants and the wind plants that are in operation. Manageable costs are the costs of operation and maintenance of the SHPs of the subsidiary Energética Serra da Prata S.A. ( ESPRA ) and of the wind farms in operation. Costs excluding depreciation (R$ 000) 42,216 25,625 11,922 5,903 10,085 11,986 2, ,975 30,294 7,458 7,011 2Q14 2Q15 1H14 1H15 Manageable Non-manageable In 2Q15 manageable costs totaled R$ 5.9 million, 124.7% higher than in 2Q14. The increase reflected the higher payment of TUST and regulatory charges due to the start of operation of the wind farms of the LER 2010 auction and four wind farms of the LEN A auction. In the half year, non-manageable costs were R$ 11.9 million, or 139.6% more than in first half 2014, for the same reason. In 2Q15, manageable costs were R$ 19.7 million. The year-on-year increase of R$ 12.3 million was primarily due to: Expenses on third party services R$ 13.9 million higher, mainly for maintenance of the wind farms, following expiration of the grace period. The amount for the half-year was accounted in full in this second quarter. Rentals and leasing R$ 0.7 million lower in the second quarter due to a change in the rule for capitalization of sites leased for Alto Sertão III. 11

12 Total expense on purchase of electricity for resale R$ 0.8 million lower in the quarter. Expense on material for use and consumption R$ 0.2 million higher, reflecting purchase of material for maintenance and replacement parts for the wind farm. The item Other costs was R$ 0.3 million lower. In the half year, manageable costs totaled R$ 30.3 million, or 332.1% more than 1H2014, mainly due to higher expenses on third party services. Depreciation in the quarter was R$ 21.3 million, or 22.5% higher than in 2Q14. In the half year, depreciation was R$ 52.9 million, up 51.8% due to the start of operation of the wind farm complexes under the LER 2010 auction and four wind farms from the LEN A auction. Note that under IFRS 5 / CPC 31, assets held for sale are not to be depreciated. Thus, no depreciation was accounted in the quarter for the complexes built under the 2009 LER auction, and the SHPs of ESPRA Consolidated administrative expenses Renova Energia S.A. R$ 000 2Q15 2Q14 Change 1H15 1H14 Change Personnel and management 10,733 5, % 17,954 8, % Outsourced services 13,398 10, % 24,910 17, % Rentals and leasing % 1, % Travel 2,044 1, % 3,941 1, % Projects discontinued - 1, % - 1, % Insurance (137) % % Telephony and IT % 1,632 1, % Material for use and consumption % 1, % Others 3,226 1, % 5,326 2, % Total 31,198 20, % 56,646 32, % *Excludes administrative depreciation. Administrative expenses in 2Q15 were R$ 31.2 million, 52.8% higher than in 2Q14. This reflects: Personnel and administration: higher number of employees 328 at June 30, 2015 vs. 237 at June 30, 2014; the wage increase under the union agreement of April 2015; and bonuses; Outsourced services: R$ 2.6 million higher than in 2014, due to higher expenses on consultancy and lawyers; Rentals and leasing: higher due to new rentals for the Salvador and São Paulo offices. Travel: higher, reflecting the Company s projects. Insurance, telephony and IT: lower, on reclassifications between accounts and reversal of a provision. Others: freight and mail costs, expenses on social programs for communities where the Company operates, and non-recurring items. The higher total than in 2Q14 is mainly due to higher expenditure on events this year, and expenses of the power trading company. 12

13 In the first half of 2015 administrative expenses totaled R$ 56.6mn, or 72.1% more than 1H14, mainly reflecting personnel and administration and higher expenses on third party services Consolidated financial revenue (expenses) Renova Energia S.A. R$ 000 2Q15 2Q14 Change 1H15 1H14 Change Financial revenues 8,687 19, % 18,904 26, % Revenue from cash investments 8,057 18, % 18,270 25, % Other financial revenues % % Financial expenses (55,063) (25,111) 119.3% (110,432) (49,810) 121.7% Costs of debt (50,415) (23,617) 113.5% (101,752) (46,758) 117.6% Other financial expenses (4,648) (1,494) 211.1% (8,680) (3,052) 184.4% Financial revenue (expenses) (46,376) (5,967) 677.2% (91,528) (23,655) 286.9% Renova reports net financial expenses in 2Q15, of R$ 46.4 million. Financial revenues were 54.6% below their level of 2Q14, mainly due to the Company holding less cash. Financial expenses increased by 119.3%, YoY, mainly on three factors: (i) higher financing volume in the quarter, especially with the new debenture issue by the holding company, issued in December, and bridge loans for Alto Sertão III; (ii) higher interest rates resulting from the indexers of the financings (TJLP and CDI); and (iii) accounting in the profit and loss account of the financing of the 2010 LER projects and part of the 2011 A 3 LEN projects, since their costs are no longer capitalized after they started operation. The reported net financial result for the first half of the year was net financial expenses of R$ 91.5mn, 286.9% higher than in 1H14. The variation also arises from the lower cash balance, and the higher expenses on debt costs Equity gain / Loss Brasil PCH Renova made the acquisition of 51% of Brasil PCH as part of the transaction which increased the share capital and included Cemig GT in the controlling stockholding block. The acquisition was made through a subsidiary (Chipley), in which until 3Q14 Renova owned 60%, and with completion of the capital increase, as from 4Q14 Renova owned 100%. 13

14 Brasil PCH (100%) R$ 000 2Q15 1H15 Net revenue 44,188 98,443 Costs (8,030) (15,632) Expenses (2,847) (6,503) Depreciation (10,770) (21,641) Financial revenue (expenses) (29,750) (56,060) Income tax and Social Contribution tax (1,564) (4,028) Net profit (8,773) (5,421) Brasil PCH reported a loss of R$ 8.8 million in the second quarter, and Renova (through Chipley) has the right to 51% of the result of Brasil PCH. The total goodwill in the acquisition was R$ million. The Company assessed the fair value of the assets and liabilities in Brasil PCH, based on the best existing estimate. Thus the monthly value of the amortization of goodwill was recorded in the month of the acquisition. The total amortization of goodwill accounted in the quarter was R$ 9.1 million. This table shows the effect of the acquisition of Brasil PCH in Renova: Renova 2Q15 1H15 Equity method gains (losses) (4,474) (2,765) Amortization of goodwill (9,077) (18,152) Net profit (13,551) (20,917) 5.6. Income tax, social contribution tax and net profit Renova s revenues from generation are taxed by the Presumed Profit method of tax reporting. Under this regime, the amount on which the tax is calculated is the sum of 8% of gross revenues arising from electricity generation and 100% of financial revenues. To this amount, Income Tax is applied, at the regular rates: 15% basic rate plus an additional 10% over a threshold figure. The Social Contribution tax is calculated, at its regular rate of 9%, on: 12% of gross revenues from electricity generation, plus 100% of financial revenues. Income tax and social contribution tax in 2Q15 totaled R$ 8.2 million, which compares to R$ 2.9 million in 2Q14, mainly reflecting higher revenues with the new wind farms coming into operation. Income tax and social contribution tax in the half year totaled R$ 13.5 million. For second quarter 2015, Renova reported a net loss of R$ 27.3 million, which compares with a loss of R$ 3.3 million in second quarter In the first half of 2015, Renova reported a net loss of R$ 56.4 million. 14

15 5.7. EBITDA Renova Energia S.A. R$ 000 2Q15 2Q14 Change 1H15 1H14 Change Net operational revenue 119,534 57, % 222, , % Net profit (loss) (27,287) (3,322) 721.4% (56,408) (6,066) 829.9% (+) Income Tax and Social Contribution tax 8,238 2, % 13,476 6, % (+) Depreciation 30,910 17, % 72,354 35, % (+) Financial expenses 55,063 25, % 110,432 49, % (-) Financial revenues (8,687) (19,144) -54.6% (18,904) (26,155) -27.7% Ebitda 58,237 23, % 120,950 59, % Ebitda margin 48.7% 40.9% 7.8 p.p. 54.3% 53.8% 0.5 p.p. (+) Equity method gains (losses) 4,474 3, % 2,765 6, % (+) Financial adjustments generation (21,173) 7, % 19,848 12, % (+) Provision for 2010 LER (4,645) - Adjusted EBITDA 41,538 34, % 143,563 73, % Adjusted EBITDA margin 34.7% 59.7% p.p. 64.5% 66.6% -2.1 p.p. EBITDA in 2Q15 was R$ 58.2 million, that is to say an increase of 149.3% over 2Q14 and with EBITDA margin of 48.7%. EBITDA adjusted for equity gains/losses and generation adjustments was R$ 41.5 million, 21.9% higher than in 2Q14, with EBITDA margin 34.7%. In the first half of the year EBITDA was R$ million an increase of 103.0% from 1H15, and EBITDA margin in the first half of 2015 was 54.3%. Adjusted EBITDA for the first half of the year was R$ million, or 94.7% more than in 2H14, with EBITDA margin of 64.5%. 15

16 6. CASH FLOW 2Q15 Cash Flow 90, ,469 47,478 97,376 46,929 49,898 (13,596) (252,454) Initial Cash Operational Financing Cash Investiments Investments Final Cash Cash Investments Availabilities (total) (total) * In the cash flow statements, cash investments are classified as investing activities. Renova s cash position at June 30 was R$ 3.0 million higher than at March 31, 2015, with cash and cash equivalents R$ 78.5 million lower. The main factors are: R$ 14.3 million used in operational activities. Cash inflow of R$ million in financings, from the bridge loan from the BNDES for Alto Sertão III Phase A. Cash investments of R$ 90.6 million positions held in investment funds, to be used in the construction of the Alto Sertão III complexes. Outflow of R$ million in investments, mainly for works on Alto Sertão III. In addition to cash, Renova has R$ 47.5 million in cash investments, resulting in cash and cash equivalents of R$ 97.4 million. Note that R$ 23.6 million of the R$ 49.9 million in cash refers to assets of the LER 2009 project and of ESPRA, which are classified in the balance sheet as held for sale. Of the R$ 97.4 million total of cash and cash equivalents, R$ 59.2 million refers to the assets of the LER 2009 projects, and of ESPRA. 16

17 7. ANALYSIS OF MAIN ECONOMIC AND FINANCIAL INDICATORS Balance Sheet Consolidated Assets Amounts in R$ thousands Consolidated Liabilities 6/30/2015 3/31/ /31/2014 3/31/2015 3/31/2015 3/31/2014 Current Assets Current Liabilities Cash and cash equiv Loans and Financing Investments Debentures Clients Suppliers Other Others Assets for Sale Liabilities associated with assets for sale Long-term Assets Long-term Liabilities Loans and Financing Loans and Financing Others Debentures Investiments Other Shareholder s Equity Capital Stock Fixed Assets in Use Capital Reserve Fixed Assets in Progress Retained Losses Total Assets Total Liabilities As noted (3.1 above), the board has approved the agreement between Renova, SunEdison and TerraForm Global. IFRS 5 / CPC 31 requires that assets of which a sale is highly probable, with management engaged for this to happen, and where the sale is likely to take place by the end of a year, should be classified as assets held for sale. Thus, all the lines of assets relating to the LER 2009 projects and ESPRA have now been classified in current assets, in a single line assets held for sale. The same takes place in liabilities: all the lines in liabilities relating to the projects have been classified in a single line liabilities directly associated with assets held for sale. 17

18 7.1. Main variations in assets The main variation in current assets in this quarter, and in the year, was in Assets held for sale this line now consolidates all the assets of the LER 2009 projects and ESPRA: a total amount of R$ billion. Also in current assets, Cash and cash equivalents (cash plus financial investments) on June 30, 2015, was R$ 38.2 million. We expect the Company s cash position to be strengthened with: the long-term disbursement from the BNDES for Alto Sertão III; the cash inflow of R$ million from the transaction with SunEdison/TerraForm Global; and new financings that are being structured. In non-current assets, the main variation in the quarter, and in the year, was the account of Deposits. On June 30, 2015 Renova had only R$ 3,000 (i.e. three thousand Reais) under this account, compared to R$ million on March 31, and R$ million on December 31, This was because a total of R$ million in deposits relates to the 2009 LER projects and ESPRA which (as explained above) has now been reclassified to Assets held for sale. The majority of the Deposits account consists of a specific reserve for O&M, and service of debt of the BNDES contract to guarantee full payment of the installments and principal of the debt, to ensure its coverage. The Investments line refers to Renova s 51% equity in Brasil PCH. The change of R$ billion in fixed assets in service from March 31, 2014 also relates to the classification of the assets of the LER 2009 projects and of ESPRA in assets held for sale. The change in fixed assets and progress mainly reflects the progress on the works of Alto Sertão III Main changes in liabilities The main variation in Current liabilities in this quarter, and in the year, has been the line of Liabilities directly associated to the assets held for sale, bringing together all the liabilities of the LER 2009 projects and of ESPRA, in a total of R$ million. Short-term loans and financing totaled R$ million. The increase of R$ million from the end of the first quarter was due to the bridge loan from the BNDES, now disbursed, which ceased to be long-term and became a part of short-term liabilities. There was also a further disbursement of a bridge loan for Alto Sertão III. Suppliers at June 30, 2015 was R$ million: the increase of R$ million in the quarter, and of R$ million since December 31, 2014, reflects the current stage of work on building of the Alto Sertão III wind farm complexes. In Non-current liabilities, the main change was in Loans and financings, which was R$ million at the end of the quarter or R$ billion less than at the end of 1Q15, and R$1.026 billion less than at the end of The reduction is mainly due to: (i) the BNDES bridge loan which was reallocated from long-term to short-term; and (ii) R$ million of loans relating to the LER 2009 projects and the ESPRA assets, which were grouped in the line specifically for liabilities directly associated with assets held for sale. Stockholders equity at the end of the quarter was R$ billion, in line with previous quarters, with some variation within Retained losses. 18

19 Financing The total of short and long-term Loans, financings and debentures at the end of 2Q15 was R$ billion¹, with tenors and rates as follows: Contract Rate R$ 000 BNDES LER 2009 TJLP % 562,514 BNDES LER 2009 TJLP % 275,217 BNDES LER 2009 (Social sub-credit) TJLP 6,594 BNDES Renova Eólica TJLP % 676,635 BNDES Renova Eólica TJLP % 264,654 BNDES Renova Eólica (Social sub-credit) TJLP 1,361 BNDES Bridge Loan 1, Diamantina Eólica TJLP % 146,465 BNDES Bridge Loan 1, Diamantina Eólica TJLP + 2.5% 283,447 BNB² ESPRA 9.5% p.a. 93,779 Finep Itaparica Wind Power Consortium 3.5% p.a. 6,355 Debentures 3 rd issue Holding Company % of CDI 503,458 Debentures 1 st issue Renova Eólica IPCA % p.a. 163,646 Total indebtedness 2,984,125 Funding cost (22,000) Transfer of liabilities associated with assets held for sale ( ) Debt net of costs 2,032,553 Cash & cash equivalents 38,170 Net debt³ 1,994,383 ¹ The total represents the amount accounted, plus the interest generated, without considering the funding costs of the transactions. ² Financings have interest rates of 9.5% p.a. (able to be reduced to 8.08% by a 15% non-default bonus) ³ Cash equivalents plus cash investments. Maturities timetable (R$ million) untill 12 months After 2018 Total 19

20 8. STOCK PRICE: RNEW11 ON THE BM&FBOVESPA This chart compares the stock price of RNEW11, the Bovespa index and the Brazil electricity index, in the last 12 months. 50,00 RNEW11 R$ August 3, ,00 30,00 20,00 10,00 ago-14 set-14 out-14 nov-14 dez-14 jan-15 fev-15 mar-15 abr-15 mai-15 jun-15 jul-15 RNEW x IBOV x IEE ago-14 set-14 out-14 nov-14 dez-14 jan-15 fev-15 mar-15 abr-15 mai-15 jun-15 jul-15 Rnew Ibov IEE Source: Bloomberg. 20

21 RNEW11¹ In R$ IPO (July 2010) Close of August 3, Highest price since IPO: Appreciation since IPO 174.1% Appreciation, LTM -17.6% Appreciation in % With the tools of the Company s website and the constant relationship with stockholders and potential investors at public events and events organized by investment banks, Renova s Investor Relations Department seeks to operate in a transparent relationship with the market, updating investors on its positioning, its projects under development and its outlook. The company s information and publications can be accessed on our website ( which also carries leading news on the sector that could be relevant to our business plan. ¹ Adjusted for corporate action. 9. STOCKHOLDING STRUCTURE Controlling stockholder block 79.6% ON RR Participações Light Energia Cemig GT RR Participações 1 BNDESPAR FIP InfraBrasil FIP Caixa Ambiental Others 21.4% ON 0.0 % PN 15.9% total 21.4% ON 0.0% PN 15.9% total 36.8% ON 0.0% PN 27.3% total 3.5% ON 1.6% PN 3.0% total 3.9% ON 22.8% PN 8.8% total 4.9% ON 28.5% PN 11.0% total 2.3% ON 13.4% PN 5.1% total 5.8% ON 33.7% PN 13.0% total Base date: June 2015 ¹ Shares held by RR outside the controlling block. Share capital of Renova on June 30, 2015: RENOVA ENERGIA ON shares PN shares Total shares 236,844,286 81,811, ,655,422 For calculation of market capitalization, the total number of shares of Renova is divided by 3 (due to its trading in Units one common share and two preferred shares) and multiplied by the price of the security RNEW11 on the date in question. 21

22 10. GLOSSARY A 3 or A 5 Auctions New-build auctions, to contract supply starting respectively 3 and 5 years ahead. Alto Sertão I 14 wind farms owned by Renova in the interior of Bahia State, with installed capacity of MW, which contracted electricity sales in the 2009 Reserve Energy auction (LER). Alto Sertão II 15 Renova wind farms in the interior of Bahia State, with installed capacity of MW, which contracted electricity sales in the Reserve Energy (LER) Auction of 2010 and the A 3 Auction of Alto Sertão III 44 Renova wind farms in the interior of Bahia, which sold supply in the 2012 (A 5) LEN Auction, in the 2013 LER auction, and in the Free Market, with total installed capacity of 736.8MW. Alto Sertão III Phase A 23 Renova wind farms in the interior of Bahia with installed capacity of 411.0MW, which sold power supply in the 2012 (A 5) LEN auction, the 2013 LER auction, and in the Free Market. Aneel Brazil s electricity regulator (Agência Nacional de Energia Elétrica National Electricity Agency). CCEE ESPRA Free Market ICB ICSD LEN LER MCPSE Mercado Livre I Mercado Livre II Mercado Livre III MRE O&M P50 P90 PCHs PLD PPA Proinfa Regulated market SHPs SPC The Electricity Trading Chamber (Câmara de Comercialização de Energia Elétrica): Brazil s Wholesale Electricity Market. The company Energética Serra da Prata S.A., indirect subsidiary of Renova and holder and operator of Renova s three Small Hydro Plants. Contracting environment in which prices for electricity supply are freely negotiated between the consumer and the generating agent or trader. Cost-Benefit Index (Índice Custo Benefício) calculated by Aneel for new-build auctions. Debt servicing coverage index (Índice de Cobertura do Serviço da Dívida). New-build auction: Auction to contract energy supply to be provided by facilities yet to be built (Leilão de Energia Nova New Electricity Auction ). Reserve Capacity auction (Leilão de Energia de Reserva Reserve Energy Auction ). Electricity Sector Assets Property Management Manual (Manual de Controle Patrimonial do Setor Elétrico). A Renova wind farm with installed capacity of 21.6MW, in the interior of Bahia State, which has sold power supply in the Free Market. A group of eight Renova wind farms in the interior of Bahia, with installed capacity of 101.4MW, which have sold power supply in the Free Market. A Renova wind farm with installed capacity of 32.4MW, in the interior of Bahia State, which has sold power supply in the Free Market. Electricity Reallocation Mechanism (Mecanismo de Realocação de Energia). Operation and maintenance An estimate of average electricity output for which the possibility of its being exceeded in the long term is estimated at 50%. Regarded as an average estimate for electricity production. An estimate of average electricity output for which the possibility of its being exceeded in the long term is estimated at 90%. Regarded as a conservative estimate for electricity production. SHPs Small Hydroelectric Plants (Pequenas Centrais Hidrelétricas, in Portuguese). The Spot Market Price (Preço de Liquidação das Diferenças Differences Settlement Price ), published weekly by the CCEE. Power Purchase Agreement contract to buy power supply. The Program to Encourage Alternative Sources of Electric Power (Programa de Incentivos às Fontes Alternativas de Energia). Contracting environment in which prices are laid down by the regulator, Aneel. Small Hydroelectric Plants (Pequenas Centrais Hidrelétricas, or PCHs, in Portuguese). Special-purpose company (in Portuguese, Sociedade de Propósito Específico or SPE ). In accordance with CVM Instruction 381 (of January 14, 2003), the Company reports that it has signed a contract with Deloitte Touche Tohmatsu Auditores Independentes ( Deloitte ) to provide services of auditing of the accounting and financial statements of the Company and its subsidiaries. 22

23 Individual and Consolidated Interim Financial Information As of June 30,

24 CONTENTS (Page) Balance sheets... 3 Income statements... 5 Statements of comprehensive income... 7 Statements of changes in equity... 8 Statement of cash flows... 9 Statements of value added NOTES TO THE FINANCIAL STATEMENTS 1. General information Basis of preparation Basis of consolidation Authorizations Power sale Segment reporting Cash and cash equivalents and short-term investments Trade receivables Recoverable taxes Advances to suppliers Collaterals and restricted deposits Deferred taxes Investments Property, plant and equipment Trade payables Borrowings, financing and debentures Taxes payable Accounts payable / receivable - CCEE/Eletrobras Provision for civil, tax and labor risks Provision for environmental costs Equity and shareholders compensation Net revenue Costs and expenses Finance income (costs) Income tax and social contribution Related-party transactions Financial instruments and risk management Earnings per share Assets classified as held for sale Insurance coverage Commitments Non-cash transactions Subsequent events

25 BALANCE SHEETS As of June 30, 2015 In thousands of Brazilian reais - R$ Consolidated Parent ASSETS Note 06/30/ /31/ /30/ /31/2014 CURRENT ASSETS Cash and cash equivalents 7 26,336 86,599 1,391 28,598 Short-term investments 7 11, ,018 3, ,027 Trade receivables 8 18,198 68, Accounts receivable - CCEE Recoverable taxes 9 13,058 15,064 9,218 8,476 Prepaid expenses Collaterals and restricted deposits 11 1, , Dividends receivable , Advances to suppliers 10 12,157 8,575 10,945 6,033 Other receivables 4,602 3,812 4,604 4,118 88, ,655 34, ,050 Assets classified as held for sale 29 1,645, ,185 - Total current assets 1,734, , , ,050 NONCURRENT ASSETS Accounts receivable - CCEE 18 2,214 6, Related parties ,094 55,063 Collaterals and restricted deposits , Deferred taxes , Other receivables Investments , ,312 1,445,107 1,973,507 Property, plant and equipment 14 1,242,508 2,175,130 36,242 30,285 Construction in progress 14 2,117,733 1,791, , ,554 Total noncurrent assets 4,055,099 4,849,587 2,285,916 2,817,524 TOTAL ASSETS 5,789,568 5,542,242 2,975,599 3,036,574 The accompanying notes are an integral part of these interim financial information. 3

26 BALANCE SHEETS As of June 30, 2015 In thousands of Brazilian reais - R$ Consolidated Parent EQUITY AND LIABILITIES Note 06/30/ /31/ /30/ /31/2014 CURRENT LIABILITIES Trade payables , ,200 11,532 10,989 Borrowings and financing , , Debentures 16 7, , Taxes payable 17 15,827 17,561 3,727 3,002 Payroll and related taxes 12,006 13,974 12,006 13,974 Accounts payable - CCEE/Eletrobras 18-22, Provision for social and environmental costs 20 6,476 6, Other payables , ,165 29,852 28,215 Liabilities directly associated with assets classified as held for sale , Total current liabilities 1,787, ,165 29,852 28,215 NONCURRENT LIABILITIES Borrowings and financing ,510 1,917, Debentures , , , ,639 Deferred taxes Accounts payable - CCEE/Eletrobras 18 1,928 15, Provision for social and environmental costs 20 4,956 9, Provision for civil, tax and labor taxes Total noncurrent liabilities 1,548,082 2,515, , ,718 EQUITY 21 Capital 2,568,006 2,567,997 2,568,006 2,567,997 (-) Costs on issuance of shares (41,757) (41,757) (41,757) (41,757) Capital reserve 55,830 55,176 55,830 55,176 Accumulated losses (128,183) (71,775) (128,183) (71,775) Total equity 2,453,896 2,509,641 2,453,896 2,509,641 TOTAL LIABILITIES AND EQUITY 5,789,568 5,542,242 2,975,599 3,036,574 The accompanying notes are an integral part of these interim financial information. 4

27 INCOME STATEMENTS As of June 30, 2015 In thousands of Brazilian reais - R$ Note 04/01/2015 to 06/30/ /01/2014 to 06/30/2014 Consilidated 01/01/2015 to 06/30/ /01/2014 to 06/30/2014 NET REVENUE ,534 57, , ,696 COST OF SERVICES Depreciation 14, 23 (21,256) (17,348) (52,902) (34,861) Operating costs (19,722) (7,458) (30,294) (7,011) Charges on use of distribution system (5,903) (2,627) (11,922) (4,975) Total 23 (46,881) (27,433) (95,118) (46,847) GROSS PROFIT 72,653 29, ,459 63,849 INCOME (EXPENSES) General and administrative (30,934) (19,820) (55,495) (32,240) Depreciation and amortization 14, 23 (577) (424) (1,300) (734) Other expenses (264) (596) (1,151) (684) 23 (31,775) (20,840) (57,946) (33,658) Share of profit (loss) of subsidiaries 13.3 (13,551) (3,233) (20,917) (6,211) Total (45,326) (24,073) (78,863) (39,869) PROFIT BEFORE FINANCE INCOME (COSTS) 27,327 5,589 48,596 23,980 FINANCE INCOME (COSTS) Finance income Finance costs 8,687 19,144 18,904 26,155 Total (55,063) (25,111) (110,432) (49,810) 24 (46,376) (5,967) (91,528) (23,655) (LOSS) PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION (19,049) (378) (42,932) 325 Income tax and social contribution - current Income tax and social contribution - deferred (7,779) (3,149) (12,769) (6,722) Total 12.1 (459) 205 (707) (8,238) (2,944) (13,476) (6,391) LOSS FOR THE PERIOD (27,287) (3,322) (56,408) (6,066) The accompanying notes are an integral part of these interim financial information. 5

28 INCOME STATEMENTS As of June 30, 2015 In thousands of Brazilian reais - R$ Note 04/01/2015 to 06/30/ /01/2014 to 06/30/2014 Parent 01/01/2015 to 06/30/ /01/2014 to 06/30/2014 NET REVENUE COST OF SERVICES Depreciation 14, 23 (1,239) (451) (2,297) (833) Operating costs (184) (40) (299) (40) Total 23 (1,423) (491) (2,596) (873) GROSS PROFIT (1,344) (390) (2,373) (772) INCOME (EXPENSES) General and administrative (21,656) (13,000) (42,372) (23,143) Depreciation and amortization 14, 23 (656) (420) (1,290) (727) Other expenses (238) (596) (1,015) (777) 23 (22,550) (14,016) (44,677) (24,647) Share of profit (loss) of subsidiaries ,033 3,202 16,654 14,483 Total (12,517) (10,814) (28,023) (10,164) PROFIT BEFORE FINANCE INCOME (COSTS) (13,861) (11,204) (30,396) (10,936) FINANCE INCOME (COSTS) Finance income 1,093 14,290 4,099 17,247 Finance costs (14,519) (6,408) (30,111) (12,377) Total (13,426) 7,882 (26,012) 4, (LOSS) PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION (27,287) (3,322) (56,408) (6,066) Income tax and social contribution - current Income tax and social contribution - deferred Total LOSS FOR THE YEAR (27,287) (3,322) (56,408) (6,066) Loss per share (in Brazilian reais - R$) Basic 28 (0.177) (0.026) Diluted 28 (0.177) (0.026) The accompanying notes are an integral part of these interim financial information. 6

29 STATEMENTS OF COMPREHENSIVE INCOME As of June 30, 2015 In thousands of Brazilian reais - R$ 04/01/2015 to 06/30/ /01/2014 to 06/30/2014 Consolidated 01/01/2015 to 06/30/ /01/2014 to 06/30/ /01/2015 to 06/30/ /01/2014 to 06/30/2014 Parent 01/01/2015 to 06/30/ /01/2014 to 06/30/2014 Loss for the period (27,287) (3,322) (56,408) (6,066) (27,287) (3,322) (56,408) (6,066) Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (27,287) (3,322) (56,408) (6,066) (27,287) (3,322) (56,408) (6,066) The accompanying notes are an integral part of these interim financial information. 7

30 STATEMENTS OF CHANGES IN EQUITY As of June 30, 2015 In thousands of Brazilian reais - R$ Capital Capital reserve Reserve of benefits to employees Funds Cost on settled with for future Total issuance equity Accumulated capital parent s Note Paid-in of shares instruments Goodwill losses increase equity BALANCES AT DECEMBER 31, ,017,697 (36,112) 55,066 1 (36,052) - 1,000,600 Capital increase - issuance of shares Funds for future capital increase , ,129 Loss for the period (6,066) - (6,066) BALANCES AT JUNE 30, ,017,714 (36,112) 55,066 1 (42,118) 810,129 1,804,680 BALANCES AT DECEMBER 31, ,567,997 (41,757) 55,175 1 (71,775) - 2,509,641 Capital increase - issuance of shares 21.b Recognition of share-based payment Loss for the period (56,408) - (56,408) BALANCES AT JUNE 30, ,568,006 (41,757) 55,829 1 (128,183) - 2,453,896 The accompanying notes are an integral part of these interim financial information. 8

31 STATEMENT OF CASH FLOWS As of June 30, 2015 In thousands of Brazilian reais - R$ Consolidated Parent Note 06/30/ /30/ /30/ /30/2014 CASH FLOWS FROM OPERATING ACTIVITIES Loss for the period (56,408) (6,066) (56,408) (6,066) Adjustments to reconcile loss to cash provided by (used in) operating activities: Depreciation 14, 23 54,202 35,595 3,587 1,560 Finance charges on intragroup loans (net) (75) (342) Residual value of fixed assets disposed of 14 1,403 1,343-1,343 Interest on debentures and borrowings ,752 46,760 29,031 11,651 Recognition of costs on debentures and borrowings , Interst on short-term investments and collaterals (18,270) (14,974) (4,024) (5,859) Provision CCEE/Eletrobras, net 18.1 (19,999) 7, Deferred taxes 12 1,545 (717) - - Expense on share-based payment Accured bonuses 4,369 2,363 4,369 2,363 Provision for social and environmental costs 1, Provision for civil, tax and labor taxes Share of profit (loss) of subsidiaries ,917 6,211 (16,654) (14,483) (Increase) decrease in operating assets: Trade receivables 27,154 (10,178) (85) (56) Recoverable taxes (390) (1,293) (742) 539 Prepaid expenses 111 (4,706) (105) (5,382) Advances to suppliers (4,899) (880) (4,912) 233 Other receivables (1,094) (936) (486) (824) Increase (decrease) in operating liabilities: Trade payables 3,101 4, ,490 Taxes payable 10,147 4, ,303 Payroll and accrued vacation (6,337) (3,716) (6,337) (3,716) Accounts payable - CCEE / Eletrobras 18.1 (5,718) (3,153) - - Other payables Payment of income tax and social contribution (5,614) (3,805) - - Payment of interest on borrowings and financing 16.4 (86,473) (56,019) (33,359) - Dividends received ,310 Net cash provided by (used in) operating activities 22,827 3,602 (83,743) (725) CASH FLOWS FROM INVESTING ACTIVITIES Capital contribution in investees (1) (112,153) (30,750) Short-term investments 479,210 (42,194) 171,516 (190,195) Collaterals and restricted deposits (8,722) (13,279) (1,795) 453 Purchase of property, plant and equipment 14, 32 (516,565) (298,961) (44,831) (375,895) Payment of property, plant and equipment purchased in prior years (80,442) (226,657) - - Intragroup loans - granted - - (966) (2,506) Intragroup loans - received , Net cash provided by (used) in investing activities (126,519) (581,092) 64,781 (598,829) CASH FLOWS FROM FINANCING ACTIVITIES Payments of shares Funds for future capital increase 21.b - 810, ,129 Borrowings and financing ,958 14, Costs on debentures and borrowings 16.4 (9,838) (1,228) (8,254) - Borrowings repaid 16.4 (307,138) (33,468) - - Intragroup loans - receivable Intragroup loans - payable (1) Net cash (used in) provided by financing activities 66, ,396 (8,245) 810,189 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (36,701) 212,906 (27,207) 210,635 Cash and cash equivalents at beginning of period 86, ,598 28, ,686 Cash and cash equivalents at end of period 49, ,504 1, ,321 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (36,701) 212,906 (27,207) 210,635 The accompanying notes are an integral part of these interim financial information. 9

32 STATEMENTS OF VALUE ADDED As of June 30, 2015 In thousands of Brazilian reais - R$ Consolidated Parent Note 06/30/ /30/ /30/ /30/2014 REVENUE Electric power sales , , Revenue from construction of own assets 47,466 69,319 25,877 28,743 INPUTS ACQUIRED FROM THIRD PARTIES Cost of sales (44,558) (11,986) (299) (40) Materials, power, outside services and other (36,850) (26,302) (24,637) (17,301) Gross value added 197, ,246 1,185 11,518 Depreciation and amortization 14, 23 (54,202) (35,595) (3,587) (1,560) NET WEALTH CREATED 143, ,651 (2,402) 9,958 WEALTH RECEIVED IN TRANSFER Share of profit (loss) of subsidiaries 13.3 (20,917) (6,211) 16,654 14,483 Finance income 22,819 31,942 4,099 17,247 TOTAL WEALTH TO BE DISTRIBUTED 145, ,382 18,351 41,688 DISTRIBUTION OF WEALTH Personnel Payroll and related taxes 17,955 14,372 17,955 14,372 Management fees 6,700 2,660 6,700 2,660 Benefits 3,897 2,916 3,897 2,916 FGTS 1,520 1,119 1,520 1,119 Taxes and contributions: Federal 25,921 15,198 5,023 3, Lessers and lessors: Interest 139, ,332 36,650 20,860 Rentals 2,039 1,255 2,035 1,255 Other 4,184 2, Loss for the period (56,408) (6,066) (56,408) (6,066) TOTAL WEALTH DISTRIBUTED 145, ,382 18,351 41,688 The accompanying notes are an integral part of these interim financial information. 10

33 NOTES TO THE FINANCIAL STATEMENTS As of June 30, 2015 In thousands of Brazilian reais - R$ 1. General information Renova Energia S.A. ( Renova or Company or Parent ) is a publicly-held company enrolled with CNPJ under no / , with shares traded at BM&FBOVESPA ( BOVESPA ) under the Corporate Governance Level 2. Headquartered at Av. Roque Petroni Júnior, 999, 4 o andar, City of São Paulo, State of São Paulo, the Company is primarily engaged in the development, implementation and operation of projects for generation of energy from renewable sources wind, small hydroelectric plants (PCHs) and solar, and in the sale of power and related activities. The Company s corporate purposes are the generation and sale of power of all types, manufacturing of fuel from natural and renewable sources, provision of logistics supporting services to companies or environmental advisory companies, provision of advisory services for power solutions relating to the generation, sale, transmission and other businesses involving alternative power sources, provision of engineering, construction and logistics services, and development of studies and projects related to the power generation plants of all types and systems, as well as the implementation, operation, maintenance and development, manufacturing and sale of parts and equipment for power generation, transmission and distribution, operation in the electric power generation market through solar power generation equipment, including, but not limited to, sale of solar power and equipment for generation, transmission and distribution of solar power, processing of polysilicon, ingots, wafers, cells, panels, modules and inverters, sale, lease, rental or other type for provision of power generation assets, and investment in other companies capital. As of June 30, 2015, the Company holds equity interests in the following direct and indirect subsidiaries which are in the operating and preoperating stages and under construction ( Renova Group ): Equity interest - % 06/30/ /31/2014 PCH Consolidation Direct Indirect Direct Indirect Enerbras Centrais Elétricas S.A. (Holding) (a) Full Energética Serra da Prata S.A. (b) Full in Enerbras Renova PCH LTDA. (c) Full Chipley SP Participações S.A. (Holding) (d) Full Equity interest - % 06/30/ /31/2014 Wind Farms Consolidation Direct Indirect Direct Indirect Nova Renova Energia S.A. (Holding) (e) Full Bahia Eólica Participações S.A. (Holding) (*) (e) Full in Nova Renova Centrais Eólicas Candiba S.A. (*) (f) Full in Bahia Eólica Centrais Eólicas Igaporã S.A. (*) (f) Full in Bahia Eólica Centrais Eólicas Ilhéus S.A. (*) (f) Full in Bahia Eólica Centrais Eólicas Licínio de Almeida S.A. (*) (f) Full in Bahia Eólica Centrais Eólicas Pindaí S.A. (*) (f) Full in Bahia Eólica CONTINUED - 11

34 - CONTINUATION Equity interest - % 06/30/ /31/2014 Wind Farms Consolidation Direct Indirect Direct Indirect Salvador Eólica Participações S.A. (Holding) (*) (e) Full in Nova Renova Centrais Eólicas Alvorada S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Guanambi S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Guirapá S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Nossa Senhora Conceição S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Pajeú do Vento S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Planaltina S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Porto Seguro S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Rio Verde S.A. (*) (f) Full in Salvador Eólica Centrais Eólicas Serra do Salto S.A. (*) (f) Full in Salvador Eólica Renova Eólica Participações S.A. (Holding) (e) Full in Nova Renova Centrais Eólicas da Prata S.A. (g) Full in Renova Eólica Centrais Eólicas dos Araçás S.A. (g) Full in Renova Eólica Centrais Eólicas Morrão S.A. (g) Full in Renova Eólica Centrais Eólicas Seraíma S.A. (g) Full in Renova Eólica Centrais Eólicas Tanque S.A. (g) Full in Renova Eólica Centrais Eólicas Ventos do Nordeste S.A. (g) Full in Renova Eólica Centrais Eólicas Ametista S.A. (h) Full in Renova Eólica Centrais Eólicas Borgo S.A. (h) Full in Renova Eólica Centrais Eólicas Caetité S.A. (h) Full in Renova Eólica Centrais Eólicas Dourados S.A. (h) Full in Renova Eólica Centrais Eólicas Espigão S.A. (h) Full in Renova Eólica Centrais Eólicas Maron S.A. (h) Full in Renova Eólica Centrais Eólicas Pelourinho S.A. (h) Full in Renova Eólica Centrais Eólicas Pilões S.A. (h) Full in Renova Eólica Centrais Eólicas Serra do Espinhaço S.A. (h) Full in Renova Eólica Alto Sertão Participações S.A. (Holding) (e) Full Diamantina Eólica Participações S.A. (Holding) (e) Full in Alto Sertão Centrais Eólicas São Salvador S.A. (i) Full in Diamantina Centrais Eólicas Abil S.A. (j) Full in Diamantina Centrais Eólicas Acácia S.A. (j) Full in Diamantina Centrais Eólicas Angico S.A. (j) Full in Diamantina Centrais Eólicas Folha da Serra S.A. (j) Full in Diamantina Centrais Eólicas Jabuticaba S.A. (j) Full in Diamantina Centrais Eólicas Jacarandá do Serrado S.A. (j) Full in Diamantina Centrais Eólicas Taboquinha S.A. (j) Full in Diamantina Centrais Eólicas Tabua S.A. (j) Full in Diamantina Centrais Eólicas Vaqueta S.A. (j) Full in Diamantina Centrais Eólicas Unha d'anta S.A. (k) Full in Diamantina Centrais Eólicas Cedro S.A. (k) Full in Diamantina Centrais Eólicas Vellozia S.A. (k) Full in Diamantina Centrais Eólicas Angelim S.A. (k) Full in Diamantina Centrais Eólicas Facheio S.A. (k) Full in Diamantina Centrais Eólicas Sabiu S.A. (k) Full in Diamantina Centrais Eólicas Barbatimão S.A. (k) Full in Diamantina Centrais Eólicas Juazeiro S.A. (k) Full in Diamantina Centrais Eólicas Jataí S.A. (k) Full in Diamantina Centrais Eólicas Imburana Macho S.A. (k) Full in Diamantina Centrais Eólicas Amescla S.A. (k) Full in Diamantina Centrais Eólicas Umbuzeiro S.A. (k) Full in Diamantina Centrais Eólicas Pau d'água S.A. (k) Full in Diamantina Centrais Eólicas Manineiro S.A. (k) Full in Diamantina CONTINUED 12

35 - CONTINUATION Equity interest - % 06/30/ /31/2014 Wind Farms Consolidation Direct Indirect Direct Indirect Centrais Elétricas Botuquara S.A. (k) Full Centrais Eólicas Anísio Teixeira S.A. (k) Full Centrais Eólicas Cabeça de Frade S.A. (k) Full Centrais Eólicas Canjoão S.A. (k) Full Centrais Eólicas Carrancudo S.A. (k) Full Centrais Eólicas Conquista S.A. (k) Full Centrais Eólicas Coxilha Alta S.A. (k) Full Centrais Eólicas Ipê Amarelo S.A. (k) Full Centrais Eólicas Jequitiba S.A. (k) Full Centrais Eólicas Macambira S.A. (k) Full Centrais Eólicas Tamboril S.A. (k) Full Centrais Eólicas Tingui S.A. (k) Full Centrais Eólicas Alcacuz S.A. (k) Full Centrais Eólicas Caliandra S.A. (k) Full Centrais Eólicas Cansanção S.A. (k) Full Centrais Eólicas Embiruçu S.A. (k) Full Centrais Eólicas Ico S.A. (k) Full Centrais Eólicas Imburana de Cabão S.A. (k) Full Centrais Eólicas Lençóis S.A. (k) Full Centrais Eólicas Putumuju S.A. (k) Full Centrais Elétricas Itaparica S.A. (k) Full Centrais Eólicas Bela Vista XIV LTDA. (k) Full Centrais Eólicas Bela Vista XV LTDA. (k) Full Centrais Eólicas Itapuã IV LTDA. (k) Full Centrais Eólicas Itapuã V LTDA. (k) Full Centrais Eólicas Itapuã VII LTDA. (k) Full Centrais Eólicas Itapuã XV LTDA. (k) Full Centrais Eólicas Itapuã XX LTDA. (k) Full Centrais Eólicas Umburanas 1 S.A. (k) Full Centrais Eólicas Umburanas 2 S.A. (k) Full Centrais Eólicas Umburanas 3 S.A. (k) Full Centrais Eólicas Umburanas 4 S.A. (k) Full Centrais Eólicas Umburanas 5 S.A. (k) Full Centrais Eólicas Umburanas 6 S.A. (k) Full Centrais Eólicas Umburanas 7 LT DA. (k) Full Centrais Eólicas Umburanas 8 LT DA. (k) Full Centrais Eólicas Umburanas 9 LT DA. (k) Full Centrais Eólicas Umburanas 10 LTDA. (k) Full Centrais Eólicas Umburanas 11 LTDA. (k) Full Centrais Eólicas Umburanas 12 LTDA. (k) Full Centrais Eólicas Umburanas 13 LTDA. (k) Full Centrais Eólicas Umburanas 14 LTDA. (k) Full Centrais Eólicas Umburanas 15 LTDA. (k) Full Centrais Eólicas Umburanas 16 LTDA. (k) Full Centrais Eólicas Umburanas 18 LTDA. (k) Full Equity interest - % 06/30/ /31/2014 Power Sale Consolidation Direct Indirect Direct Indirect Renova Comercializadora de Energia S.A. (l) Full Equity interest - % 06/30/ /31/2014 Holding Consolidation Direct Indirect Direct Indirect Renovapar S.A. (m) Full

36 Equity interest - % Shared control 06/30/ /31/2014 PCH (not consolidated) Direct Indirect Direct Indirect Brasil PCH S.A. (n) Indirect by Chipley (*) in May 2015 these investments were transferred to line of assets classified as held for sale, in the current assets (see note 29). (a) Enerbras Centrais Elétricas S.A. ( Enerbras ), a direct subsidiary, is a privately-held company, headquartered in the State of Bahia, exclusively engaged in holding equity interest in Energética Serra da Prata S.A. ( Espra ). (b) Energética Serra da Prata S.A. ( Espra ), an indirect subsidiary, is a privately-held company, exclusively engaged in the generation and sale of electric power from Serra da Prata Hydroelectric Complex, which are comprised of PCHs Cachoeira da Lixa, Colino I and Colino II, located in the State of Bahia. Under an authorization regime, 100% of its production is contracted with Centrais Elétricas Brasileiras ( Eletrobras ), in the context of the Alternative Electric Power Source Incentive Program (PROINFA). Espra started operations in (c) Renova PCH Ltda. ( Renova PCH ), a direct subsidiary, is mainly engaged in the construction, implementation, operation, maintenance and generation of water source power. The company is in the preoperating stage. (d) Chipley SP Participações S.A. ( Chipley ) is a privately-held company, mainly engaged in holding equity interests in other businesses, as partner or shareholder, which may include participating in consortia, and operating, directly or indirectly, as the case may be, electric power services, encompassing generation systems and other related services. (e) Privately-held companies, headquartered in São Paulo, which are mainly engaged in holding equity interests in other companies that operate, directly or indirectly, in the wind power generation. (f) Privately-held companies which are mainly engaged in the design, implementation, development and operation of specific wind farm, located in the State of Bahia. Under an authorization regime, 100% of its production is contracted with the Electric Power Trade Chamber ( CCEE ), in the context of the Reserve Auction 2009 ( LER 2009 ). (g) Privately-held companies which are mainly engaged in the design, implementation, development and operation of specific wind farm, located in the State of Bahia. Under an authorization regime, 100% of its production is contracted with CCEE, in the context of the Reserve Auction 2010 ( LER 2010 ). (h) Privately-held companies which are mainly engaged in the design, implementation, development and operation of specific wind farm, located in the State of Bahia. Under an authorization regime, 100% of its production is contracted with those distributors which declared demand in the New Power Auction 2011 ( LEN 2011 [A- 3] ). (i) Centrais Eólicas São Salvador S.A. ( São Salvador ), direct subsidiary, is a privately-held company specifically engaged in the design, implementation, development and operation of São Salvador wind farm, located in the State of Bahia. Under an authorization regime, 1005 of its production is contracted with those distributors which declared demand in the New Power Auction 2012 ( LEN 2012 [A-5]). The wind farm is under implementation. 14

37 (j) Direct subsidiaries which are mainly engaged in the design, implementation, development and operation of specific wind farm, located in the State of Bahia. Under an authorization regime, 100% of its production is contracted with CCEE, in the context of the Reserve Auction 2013 ( LER 2013 ). The wind farm is under implementation. (k) Direct subsidiaries which are mainly engaged in the construction, implementation, operation, maintenance and generation of wind power. These companies are under implementation. (l) Renova Comercializadora de Energia S.A. ( Renova Comercializadora ), a direct, wholly-owned subsidiary, which is mainly engaged in the sale of power of all types. (m) Renovapar S.A. ( Renovapar ), a direct subsidiary, wholly-owned subsidiary, is a privately-held company, mainly engaged in holding equity interests in other companies which operate, directly or indirectly, in the generation and sale of power of all types. (n) Brasil PCH S.A. ( Brasil PCH ) is a privately-held company, mainly engaged in holding equity interests in other businesses, as partner or shareholder, which may include conducting activities related to the management, construction, planning, operation, maintenance and development of renewable electric power generation projects through PCHs. As required by CVM Instruction 381/03, we disclose that in the period ended June 30, 2015 independent auditors Deloitte Touche Tohmatsu Auditores Independentes ( Deloitte ), which provides services to the Company and its subsidiaries and jointly-controlled subsidiaries, did not conduct any services not related to external audit that accounted for more than 5% of the annually contracted fees. 1.1 Admission of Cemig Geração e Transmissão S.A. ( CEMIG GT ) to the Company s controlling block On September 29, 2014, CEMIG GT subscribed and paid in 87,186,035 common shares issued by Renova, in the total amount of R$1,550,072, through the capitalization of an advance for future capital increase, in the amount of R$810,129, made on March 31, 2014 and through the assignment to Renova of the amount relating to the advance for future capital increase in Chipley on February 14, 2014, in the amount of R$739,943. Upon the subscription and payment, a new Shareholders Agreement was entered into between Cemig GT, RR Participações and Light Energia. On October 27, 2014, the Company s Board of Directors meeting approved the capital increase made by CEMIG GT, which subscribed and paid in 87,186,035 common shares issued by Renova, in the total amount of R$1,550,072, of which R$810,129 through the capitalization of the advance for future capital increase made in the Company and R$739,943 through assignment to the Company of the advance for future capital increase made by CEMIG GT in Chipley. In addition to CEMIG GT, preemptive rights relating to 10,866 common shares were exercised by the Company s other shareholders, totaling 87,196,901 subscribed and paid-in common shares, in the total amount of R$1,550,

38 1.2 Acquisition of the shared control of Brasil PCH As disclosed by Renova in the material facts issued on August 8, 2013 and October 28, 2013, the Company s subsidiary Chipley SP Participações S.A. acquired, on February 14, 2014, 51% of the shares in Brasil PCH, thus sharing its control. Brasil PCH holds 13 small hydroelectric plants (PCHs), with an installed capacity of 291 MW and average guaranteed power of 194 MW. All PCHs have long-term agreements (20 years) for the sale of electric power in the context of PROINFA (physical information and information relating to power capacity measures not revised by the independent auditors). The total amount of the acquisition of Brazil PCH was R$754,906, which comprises: (i) R$739,943 paid on February 14, 2014; (ii) R$23,522 paid on August 14, 2014 as a purchase price acquisition; less (iii) R$8,559 relating to the recognition and receipt of dividends originally due to the sellers of the shares in Brasil PCH. Because the company control is shared, Chipley s equity interest in Brasil PCH is recorded under the equity method, as required by IFRS 11 / CPC 19 (R2) Joint Arrangements. Additional information on the acquisition of jointly-controlled subsidiary Brasil PCH a) Considerations transferred Brasil PCH Considerations transferred: Cash transferred in cash and cash equivalents directly to shareholders 739,943 Price adjustment 23,522 Dividends originally due to the sellers of shares in Brasil PCH (8,559) Net cash from acquisition 754,906 b) Allocation of purchase price The acquisition value paid was allocated to Brasil PCH s assets and liabilities at fair values, including those intangible assets associated to the right to operate each authorization, which will be amortized over the remaining terms of the authorizations for the PCHs acquired. Consequently, as total amount paid was allocated to identifiable assets and liabilities, no residual value was allocated to goodwill. The purchase price allocation in accordance with the standards applicable to business combinations was made in the fourth quarter of 2014 and was supported by a business appraisal report prepared by an independent firm in conjunction with analyses conducted by the Company s management. The acquisition of Brasil PCH was initially accounted for as of January 31, 2014, and the fair value of Brasil PCH s assets and liabilities as of the acquisition date is shown below: Brasil PCH Assets Cash and cash equivalents 131,139 Trade receivables 34,047 Property, plant and equipment 1,593,984 Intangible assets - concession arrangement 1,785,877 Other assets 118,517 Total assets 3,663,564 16

39 Liabilities and equity Trade payables Borrowings and financing 1,327,522 Deferred taxes 687,101 Other liabilities 157,716 Equity 1,480,208 Total liabilities and equity 3,663, Commercial operation of wind farms under LER 2010 and LEN 2011 (A-3) The Reserve Power Agreements sets forth that the wind farms under LER 2010 shall start commercial operations on September 1, However, ANEEL Decision 1317, of April 28, 2014, changed this date so that it could coincide with the date on which Igaporã II Substation, under the responsibility of Companhia Hidro Elétrica do São Francisco ( Chesf ), starts commercial operations, granted an additional term of 30 days for the wind farms to start commercial operations, as from the date Igaporã II Substation starts commercial operations, and maintained the original date for ending the supply period under the agreement. In March 2014, the Company reversed the provisions previously recognized to meet the reimbursement amount due by the SPEs (clause 11 of the Reserve Power Agreement), in the amount of R$7,399, recorded in balance sheet line item Trade payables CCEE/Eletrobras, R$4,645 out of which relating to the year ended December 31, 2014 (see note 23). For the New Power Agreements under LEN 2011 (A-3), ANEEL Decision 571, of March 11, 2014, changed the starting supply date of CCEARs so that it could coincide with the date on which the transmission facilities under Concession Arrangement 19/2012 start commercial operations, granted an additional term of 30 days for starting commercial activities, as from the date the transmission facilities are made available, and maintained the supply period of 19 years and 10 months under the agreement. The wind farms under LER 2010 started commercial operations on October 11, 2014, under ANEEL Decision On March 4, 2015, four, out of the nine, farms which traded power under LEN 2011 (A-3) started commercial operations connected to the same transmission line as that which serves the farms under LER 2009 and LER 2010 (Igaporã II). The other five farms will be connected to Igaporã III line, which, according to the Transmission Projects Schedule (SIGET/ANEEL), is scheduled to be delivered on September 30, Impact of new laws Provisional Act 627/2013 ( MP 627 ) Law 12973/2014 On November 11, 2013, MP 627 was enacted and significantly changed the income tax and social contribution rules, among others. The provisions set forth in MP 627 will become mandatory beginning calendar year 2015, with early adoption beginning 2014 being allowed. Management analyzed the tax effects of new provisions and concluded that the distributions of dividends and/or interest on capital were not greater than those recorded in accordance with accounting methods and criteria effective as at December 31, Accordingly, according to Management, no additional tax charges will be recorded in addition to the profit sharing over the last five years. Management elected to early adopt such rules beginning calendar year

40 MP 627 was converted into Law 12973, of May 13, Net working capital On September 30, 2014, the consolidated current liabilities of the Company is R$1,787,590, while the current assets is R$1,734,469. The negative working capital is due mainly to the bridge loan signed with BNDES of R$418,000. The bridge loan matures on June 15, 2016 or in long-term financing agreement for the disbursement date to be signed between BNDES and the Company, whichever comes first. The Company's management has been conducting actions in order to improve its financial structure and working capital that include structuring loans with longer appropriate to the current needs and deadlines. The Company is in final arrangements for framing next to the stretching BNDES of its debt through long-term financing contract, which will replace the bridge loans taken from BNDES. In addition, the Company also announced the approval of the transaction with Global Terraform, divided into two phases (Phase I and Phase II). In Phase I, approved the entering into purchase and sale agreements amounting to R$587,000 and stock exchange agreement in the amount of R$1,026,000. In Phase II, it approved the entering into swap agreements in the amount of R$13,400,000 (notes 29, 33.1 and 33.2). 2. Basis of preparation 2.1 Statement of compliance The individual financial statements have been prepared in accordance with accounting practices adopted in Brazil ( BR GAAP ), according to guidelines issued by the Accounting Pronouncements Committee ( CPC ) (especially CPC 21 (R1) Interim Financial Statements) and the standards set forth by the Brazilian Securities and Exchange Commission ( CVM ). The consolidated financial statements have been prepared in accordance with accounting practices adopted in Brazil ( BR GAAP ) and with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board (IASB). They were prepared and are presented in accordance with CPC 21 (R1) and IAS 34 and the standards set forth by the Brazilian Securities and Exchange Commission (CVM). The Company also follows the guidance in the Accounting Manual for the Brazilian Electricity Industry and standards established by ANEEL. The accounting practices and criteria adopted in the preparation of these interim financial statements are consistent with those adopted in preparing the financial statements of December 31, The issue of individual and consolidated interim financial information, expressed in thousands of reais and rounded to the nearest thousand, unless other stated, were approved for issuance, filing with CVM and submittal to the Annual Shareholders Meeting, as authorized by the Board of Directors, on August 4,

41 2.2 Basis of preparation, basis for measurement and significant accounting practices The remaining information related to the basis for preparation, presentation of the Interim Financial Information and summary of significant accounting practices have not suffered relevant alterations in relation to those disclosed in note 2 to the annual financial statements for the year ended December 31, 2014, published on March 5, 2015 in the newspapers Valor Econômico, Diário Oficial de São Paulo and made available by means of the following electronic sites: For the Accounting Pronouncements and Interpretation that were prevailing as at December 31, 2014, there were no significant alterations for these interim financial statements in relation to those disclosed in Note 2 to the financial statements as at December 31, For accounting Pronouncements and Interpretations that prevail as of January 1, 2015, as disclosed in note 2 to the financial statements for the year ended December 31, 2014, there are not relevant impacts for the Company, subsidiaries or jointly-owned subsidiaries. 3. Basis of consolidation The financial statements of the subsidiaries referred to in note 1 were consolidated. The main consolidation procedures are as follows: elimination of intercompany asset and liability balances between consolidated companies; elimination of the Parent s interests in the equity of its subsidiaries, directly and indirectly; elimination of revenues and expenses and finance costs between the consolidated companies. 19

42 4. Authorizations 4.1. Regulated market (ACR) Authorized Installed PCH Ref. Contract ANEEL Resolution Resolution date period production capacity* Cachoeira da Lixa PROINFA /24/ years MW Colino 2 PROINFA /24/ years MW Colino 1 PROINFA /24/ years MW Authorized Installed Wind Farms Ref. Contract MME Ordinance Ordinance date period production capacity* Centrais Eólicas Alvorada S.A. LER 03/ /05/ years 8.00 MW Centrais Eólicas Candiba S.A. LER 03/ /05/ years 9.60 MW Centrais Eólicas Guanambi S.A. LER 03/ /06/ years MW Centrais Eólicas Guirapá S.A. LER 03/ /19/ years MW Centrais Eólicas Igaporã S.A. LER 03/ /05/ years MW Centrais Eólicas Ilhéus S.A. LER 03/ /05/ years MW Centrais Eólicas Licínio de Almeida S.A. LER 03/ /05/ years MW Centrais Eólicas Nossa Senhora Conceição S.A. LER 03/ /05/ years MW Centrais Eólicas Pajeú do Vento S.A. LER 03/ /05/ years MW Centrais Eólicas Pindaí S.A. LER 03/ /05/ years MW Centrais Eólicas Planaltina S.A. LER 03/ /05/ years MW Centrais Eólicas Porto Seguro S.A. LER 03/ /05/ years 6.40 MW Centrais Eólicas Rio Verde S.A. LER 03/ /19/ years MW Centrais Eólicas Serra do Salto S.A. LER 03/ /05/ years MW Centrais Eólicas Morrão S.A. LER 05/ /20/ years MW Centrais Eólicas da Prata S.A. LER 05/ /25/ years MW Centrais Eólicas dos Araçás S.A. LER 05/ /07/ years MW Centrais Eólicas Seraíma S.A. LER 05/ /27/ years MW Centrais Eólicas Tanque S.A. LER 05/ /26/ years MW Centrais Eólicas Ventos do Nordeste S.A. LER 05/ /18/ years MW Centrais Eólicas Ametista S.A. LEN 02/ /14/ years MW Centrais Eólicas Borgo S.A. LEN 02/ /13/ years MW Centrais Eólicas Caetité S.A. LEN 02/ /21/ years MW Centrais Eólicas Dourados S.A. LEN 02/ /13/ years MW Centrais Eólicas Espigão S.A. LEN 02/ /22/ years MW Centrais Eólicas Maron S.A. LEN 02/ /08/ years MW Centrais Eólicas Pelourinho S.A. LEN 02/ /21/ years MW Centrais Eólicas Pilões S.A. LEN 02/ /13/ years MW Centrais Eólicas Serra do Espinhaço S.A. LEN 02/ /22/ years MW Centrais Eólicas São Salvador S.A. LEN 06/ /22/ years MW Centrais Eólicas Abil S.A. LER 05/ /19/ years MW Centrais Eólicas Acácia S.A. LER 05/ /24/ years MW Centrais Eólicas Angico S.A. LER 05/ /19/ years 8.10 MW Centrais Eólicas Folha de Serra S.A. LER 05/ /19/ years MW Centrais Eólicas Jabuticaba S.A. LER 05/ /19/ years 9.00 MW Centrais Eólicas Jacaranda do Cerrado S.A. LER 05/ /19/ years MW Centrais Eólicas Taboquinha S.A. LER 05/ /19/ years MW Centrais Eólicas Tabua S.A. LER 05/ /19/ years MW Centrais Eólicas Vaqueta S.A. LER 05/ /28/ years MW Centrais Eólicas Umburanas 1 S.A. (Umburanas 1) LEN 10/ /01/ years MW Centrais Eólicas Umburanas 1 S.A. (Umburanas 2) LEN 10/ /04/ years MW Centrais Eólicas Umburanas 1 S.A. (Umburanas 3) LEN 10/ /04/ years MW Centrais Eólicas Umburanas 2 S.A. (Umburanas 4) LEN 10/ /01/ years MW Centrais Eólicas Umburanas 2 S.A. (Umburanas 5) LEN 10/ /04/ years MW Centrais Eólicas Umburanas 2 S.A. (Umburanas 6) LEN 10/ /12/ years MW Centrais Eólicas Umburanas 3 S.A. (Umburanas 7) LEN 10/ /27/ years MW Centrais Eólicas Umburanas 3 S.A. (Umburanas 8) LEN 10/ /27/ years MW Centrais Eólicas Umburanas 3 S.A. (Umburanas 9) LEN 10/ /04/ years MW 20

43 - CONTINUED - - CONTINUATION Authorized Installed Wind Farms Ref. Contract MME Ordinance Ordinance date period production capacity* Centrais Eólicas Umburanas 4 S.A. (Umburanas 10) LEN 10/ /04/ years MW Centrais Eólicas Umburanas 4 S.A. (Umburanas 11) LEN 10/ /08/ years MW Centrais Eólicas Umburanas 4 S.A. (Umburanas 12) LEN 10/ /21/ years MW Centrais Eólicas Umburanas 5 S.A. (Umburanas 13) LEN 10/ /21/ years MW Centrais Eólicas Umburanas 5 S.A. (Umburanas 14) LEN 10/ /21/ years MW Centrais Eólicas Umburanas 5 S.A. (Umburanas 15) LEN 10/ /21/ years MW Centrais Eólicas Umburanas 6 S.A. (Umburanas 16) LEN 10/ /21/ years MW Centrais Eólicas Umburanas 6 S.A. (Umburanas 18) LEN 10/ /21/ years 8.10 MW Centrais Eólicas Itapuã VII Ltda. (EOL Mulungu) LER /01/ years 14.7 MW Centrais Eólicas Itapuã VII Ltda. (EOL Quina) LER /01/ years MW Centrais Eólicas Itapuã VII Ltda. (EOL Pau Santo) LER /26/ years MW Authorized Installed UFV (Usina Fotovoltaica) Ref. Contract MME Ordinance Ordinance date period production capacity* Centrais Eólicas Itapuã IV Ltda. (UFV Caetité I) LER 2014 (Leilão 08/2014) /01/ years MW Centrais Eólicas Itapuã IV Ltda. (UFV Caetité II) LER 2014 (Leilão 08/2014) /01/ years MW Centrais Eólicas Itapuã V Ltda. (UFV Caetité IV) LER 2014 (Leilão 08/2014) /01/ years MW Centrais Eólicas Itapuã V Ltda. (UFV Caetité V) LER 2014 (Leilão 08/2014) /01/ years 10.5 MW 4.2. Free-trading market (ACL) Authorized Installed Wind Farms Ref. Contract MME Ordinance Ordinance date period production capacity* Centrais Eólicas Amescla S.A. ACL /26/ years 13.5 MW Centrais Eólicas Angelim S.A. ACL /26/ years 21.6 MW Centrais Eólicas Barbatimão S.A. ACL /26/ years 16.2 MW Centrais Eólicas Facheio S.A. ACL /26/ years 16.5 MW Centrais Eólicas Imburana Macho S.A. ACL /26/ years 16.2 MW Centrais Eólicas Jataí S.A. ACL /26/ years 16.2 MW Centrais Eólicas Juazeiro S.A. ACL /26/ years 18.9 MW Centrais Eólicas Sabiu S.A. ACL /26/ years 13.5 MW Centrais Eólicas Umbuzeiro S.A. ACL /26/ years 21.6 MW Centrais Eólicas Unha d'anta S.A. ACL /26/ years 13.5 MW Centrais Eólicas Vellozia S.A. ACL /26/ years 21.9 MW Centrais Elétricas Itaparica S.A. ACL /01/ years 8.1 MW Centrais Elétricas Itaparica S.A. ACL /01/ years 13.5 MW Centrais Eólicas Manineiro S.A. ACL /01/ years 14.4 MW Centrais Eólicas Pau D'Água S.A. ACL /01/ years 18 MW Centrais Eólicas Arapuã Ltda. ACL /26/ years 13.5 MW Centrais Eólicas Bela Vista I Ltda. ACL /26/ years 5.7 MW Centrais Eólicas Botuquara Ltda. ACL /26/ years 21.6 MW Centrais Eólicas Canjoão S.A. ACL /26/ years 6 MW Centrais Eólicas Carrancudo S.A. ACL /26/ years 18.9 MW Centrais Eólicas Conquista Ltda. ACL /26/ years 24.3 MW Centrais Eólicas Coxilha Alta Ltda. ACL /27/ years 19.2 MW Centrais Eólicas Ipê Amarelo S.A. ACL /26/ years 18 MW Centrais Eólicas Jequitibá S.A ACL /26/ years 8.1 MW Centrais Eólicas Macambira S.A. ACL /26/ years 21.6 MW Centrais Eólicas Tamboril S.A. ACL /26/ years 27 MW Centrais Eólicas Tingui S.A. ACL /26/ years 18.9 MW - CONTINUED - 21

44 -CONTINUATION- Authorized Installed Wind Farms Ref. Contract MME Ordinance Ordinance date period production capacity* Centrais Eólicas Alcaçuz S.A. ACL /01/ years 18.9 MW Centrais Eólicas Caliandra S.A. ACL /01/ years 5.4 MW Centrais Eólicas Embiruçu S.A. ACL /01/ years 6 MW Centrais Eólicas Ico S.A. ACL /01/ years 10.8 MW Centrais Eólicas Imburana de Cabão S.A. ACL /01/ years 20.1 MW Centrais Eólicas Lençóis Ltda. ACL /27/ years 10.8 MW Centrais Eólicas Putumuju S.A. ACL /01/ years 14.7 MW Centrais Eólicas Recôncavo I Ltda. ACL /01/ years 14.7 MW (*) Information not reviewed by independent auditors 5. Power sale 5.1. Regulated market (ACR) Amounts Effective Term Annual power Historical Adjusted Inflation Tariff Original contract contracted price price adjustment adjustment Group company Ref. Contract Buyer amount (MWh) MWh MWh Initial Final index month (R$) (R$) Small hydroelectric plants: Caxoeira da Lixa PROINFA Eletrobras 172,450 65, May 2008 April 2028 IGP-M June Colino1 PROINFA Eletrobras 153,243 87, Sep 2008 Aug 2028 IGP-M June Colino2 PROINFA Eletrobras 219,008 61, July 2008 June 2008 IGP-M June Wind power generation Centrais Eólicas Alvorada S.A. LER 03/2009 CCEE 76,233 26, July 2012 June 2032 IPCA July Centrais Eólicas Candiba S.A. LER 03/2009 CCEE 101,644 35, July 2012 June 2032 IPCA July Centrais Eólicas Guanambi S.A. LER 03/2009 CCEE 203,287 70, July 2012 June 2032 IPCA July Centrais Eólicas Guirapá S.A. LER 03/2009 CCEE 330, , July 2012 June 2032 IPCA July Centrais Eólicas Igaporã S.A. LER 03/2009 CCEE 334, , July 2012 June 2032 IPCA July Centrais Eólicas Ilhéus S.A. LER 03/2009 CCEE 128,808 43, July 2012 June 2032 IPCA July Centrais Eólicas Licínio de Almeida S.A. LER 03/2009 CCEE 254,109 87, July 2012 June 2032 IPCA July Centrais Eólicas NS Sr. Conceição S.A. LER 03/2009 CCEE 309, , July 2012 June 2032 IPCA July Centrais Eólicas Pajeú do Vento S.A. LER 03/2009 CCEE 283,377 96, July 2012 June 2032 IPCA July Centrais Eólicas Pindaí S.A. LER 03/2009 CCEE 279,520 96, July 2012 June 2032 IPCA July Centrais Eólicas Planaltina S.A. LER 03/2009 CCEE 309, , July 2012 June 2032 IPCA July Centrais Eólicas Porto Seguro S.A. LER 03/2009 CCEE 51,523 17, July 2012 June 2032 IPCA July Centrais Eólicas Rio Verde S.A. LER 03/2009 CCEE 406, , July 2012 June 2032 IPCA July Centrais Eólicas Serra do Salto S.A. LER 03/2009 CCEE 177,876 61, July 2012 June 2032 IPCA July Centrais Eólicas da Prata S.A. LER 05/2010 CCEE 214,701 88, Nov 2014 (**) Aug 2033 IPCA September Centrais Eólicas dos Araçás S.A. LER 05/2010 CCEE 295, , Nov 2014 (**) Aug 2033 IPCA September Centrais Eólicas Morrão S.A. LER 05/2010 CCEE 312, , Nov 2014 (**) Aug 2033 IPCA September Centrais Eólicas Seraíma S.A. LER 05/2010 CCEE 325, , Nov 2014 (**) Aug 2033 IPCA September Centrais Eólicas Tanque S.A. LER 05/2010 CCEE 295, , Nov 2014 (**) Aug 2033 IPCA September Centrais Eólicas Ventos do Nordeste S.A. LER 05/2010 CCEE 214,701 88, Nov 2014 (**) Aug 2033 IPCA September Centrais Eólicas Ametista S.A.(*) LEN 02/2011 Distributors 238, , Feb 15 (**) April 2035 IPCA January Centrais Eólicas Borgo S.A.(*) LEN 02/2011 Distributors 166,189 84, July 15 (**) April 2035 IPCA January Centrais Eólicas Caetité S.A.(*) LEN 02/2011 Distributors 245, , July 15 (**) April 2035 IPCA January Centrais Eólicas Dourados S.A.(*) LEN 02/2011 Distributors 226, , Feb 15 (**) April 2035 IPCA January Centrais Eólicas Espigão S.A.(*) LEN 02/2011 Distributors 83,951 42, July 15 (**) April 2035 IPCA January Centrais Eólicas Maron S.A.(*) LEN 02/2011 Distributors 236, , Feb 15 (**) April 2035 IPCA January Centrais Eólicas Pelourinho S.A.(*) LEN 02/2011 Distributors 202, , July 15 (**) April 2035 IPCA January Centrais Eólicas Pilões S.A.(*) LEN 02/2011 Distributors 224, , Feb 15 (**) April 2035 IPCA January Centrais Eólicas Serra do Espinhaço S.A.(*) LEN 02/2011 Distributors 152,483 77, Jul 15 (**) April 2035 IPCA January Centrais Eólicas São Salvador S.A. LEN 06/2012 Distributors 158,583 89, Jan 2017 Dec 2036 IPCA January - CONTINUED - 22

45 - CONTINUATION Amounts Effective Term Annual power Historical Adjusted Inflation Tariff Original contract contracted price price adjustment adjustment Group company Ref. Contract Buyer amount (MWh) MWh MWh Initial Final index month (R$) (R$) Centrais Eólicas Abil S.A. LER 05/2013 CCEE 202,880 96, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Acácia S.A. LER 05/2013 CCEE 136,979 60, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Angico S.A. LER 05/2013 CCEE 75,789 34, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Folha de Serra S.A. LER 05/2013 CCEE 175,459 84, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Jabuticaba S.A. LER 05/2013 CCEE 82,011 39, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Jacaranda do Cerrado S.A. LER 05/2013 CCEE 172,488 83, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Taboquinha S.A. LER 05/2013 CCEE 186,909 88, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Tabua S.A. LER 05/2013 CCEE 135,406 64, Sep 2015 Aug 2035 IPCA September Centrais Eólicas Vaqueta S.A. LER 05/2013 CCEE 197,191 93, Sep 2015 Aug 2035 IPCA September CRNV&M (Umburanas 1) (*) LEN 10/2013 Distributors 98, , May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 2) (*) LEN 10/2013 Distributors 99, , May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 3) (*) LEN 10/2013 Distributors 83,590 85, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 4) (*) LEN 10/2013 Distributors 82,621 84, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 5) (*) LEN 10/2013 Distributors 81,692 81, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 6) (*) LEN 10/2013 Distributors 71,979 98, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 7) (*) LEN 10/2013 Distributors 28,764 98, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 8) (*) LEN 10/2013 Distributors 28, , May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 9) (*) LEN 10/2013 Distributors 72,059 75, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 10) (*) LEN 10/2013 Distributors 82,967 91, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 11) (*) LEN 10/2013 Distributors 67,410 63, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 12) (*) LEN 10/2013 Distributors 92, , May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 13) (*) LEN 10/2013 Distributors 81,843 87, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 14) (*) LEN 10/2013 Distributors 108, , May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 15) (*) LEN 10/2013 Distributors 81,086 82, May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 16) (*) LEN 10/2013 Distributors 97, , May 2018 Dec 2037 IPCA January CRNV&M (Umburanas 18) (*) LEN 10/2013 Distributors 35,807 36, May 2018 Dec 2037 IPCA January * The price includes ICB (Benefit Cost Index) and CEC (Short-term Economic Cost). ** Original date pursuant to Decision 1317, dated April 28, 2014, and Decision 571, dated March 11, Free-trading market (ACL) The Company is currently a party to various free trading market agreements totaling MW(*) of installed capacity. In August 2011, the Company entered into a power purchase and sale commitment with Light Energia, whereby Renova will deliver average MW(*) of wind power, corresponding to MW(*) of installed capacity; wind farms will begin to generate power between 2015 and Out of the total amount of MW(*), 1/3 of the power was traded with LIGHTCOM Comercializadora de Energia S.A. and 2/3 with CEMIG GT. Other agreements were negotiated in the free market, whereby Renova will deliver average 77.0 MW(*) of wind and solar power, corresponding to MW of installed capacity. The wind farms that will satisfy these agreements will start to operate in 2015, 2016 and Additionally, in March 2014, Renova Comercializadora traded average MW with CEMIG GT, corresponding to MW(*) of installed capacity. On July 17, 2014, a Share Purchase and Sale Investment Agreement was entered into among the Company and Companhia Energética de Minas Gerais ( CEMIG ), which will hold a 50% stake in the project. The wind farms that will satisfy this agreement will start to generate power in On October 22, 2014, the Administrative Council of Economic Defense (CADE) approved the execution of such Investment Agreement. 23

46 Pursuant to the Investment Agreement, the transaction will be carried out upon the acquisition by CEMIG of 50% of the voting and total capital of a publicly-held company (SPE) to be established by the Company, in which all agreements relating to the Wind Project will be paid in. The acquisition price will correspond to up to R$113,450 relating to 50% of the amounts of advances relating to agreements already entered into by the Company, adjusted by the fluctuation of the interbank deposit rate ( CDI ) from effective disbursement by the Company up to the date of payment by CEMIG. After the acquisition, CEMIG and Renova will share the future investment of the Wind Project proportionally to their share in the SPE s capital. (*) Information not reviewed by independent auditors. 6. Segment reporting The Company has four reportable segments representing its strategic business units, besides the performance of its administrative activities. Such strategic business units offer different renewable power sources and are administered separately as they require different technologies, developments and operating characteristics. The operations on each one of the Company s reportable segments can be summarized as follows: a) PCH This segment is responsible for the development, implementation and operation of water source power generation projects. This segment includes the development of studies on inventories and basic projects and power generation. The PCHs are under operation stage for comparison between the periods ended June 30, 2015 and b) Wind This segment is responsible for the development, implementation and operation of wind source power generation projects. It includes wind measurement, leased land, implementation and power generation. The plants which won LER 2009 became able to operate in the second half of The plants which won LER 2010 started commercial operations on October 11, Four plants which traded power under LEN 2011 (A-3) started commercial operations on March 4, 2015 and other five plants are ready to operate and await the transmission line (see note 1.3). c) Solar This segment is responsible for the development, implementation and operation of the solar source power generation projects. It includes measurements, development of solar projects for generation in high scale and distributed generation, as well as the sale of goods and services. d) Sale This segment is responsible for the power sale of all types. As at June 30, 2015 and 2014, segment reporting for result, and as at June 30, 2015 and December 31, 2014, segment reporting for profit or loss and total assets and liabilities are broken down as follows: 24

47 06/30/2015 PCH Wind Solar Sale Admin. Consolidated Net revenue 11, , , ,577 Non-manageable costs (215) (11,705) - (2) - (11,922) Gross margin 11, , , ,655 Manageable costs (4,496) (33,234) (299) (5,525) (43,386) (86,940) Share of profit (loss) of subsidiaries (20,917) (20,917) Depreciation (1,857) (48,758) - - (3,587) (54,202) Finance income 3,411 11, ,024 18,904 Finance costs (3,746) (76,568) - (7) (30,111) (110,432) Income tax and social contribution (1,335) (12,141) (13,476) (Loss) profit (17,403) 34,642 (76) (511) (73,060) (56,408) Total assets 926,986 3,989, , ,240 5,789,568 Total liabilities 117,860 2,694,103-2, ,701 3,335,672 06/30/2014 PCH Wind Solar Sale Admin Consolidated Net revenue 8,943 96, , ,696 Non-manageable costs (312) (4,663) (4,975) Gross margin 8,631 91, , ,721 Manageable costs (3,280) (7,285) (69) (5,451) (23,850) (39,935) Share of profit (loss) of subsidiaries (6,211) (6,211) Depreciation (2,784) (32,084) - - (727) (35,595) Finance income 1,982 7, ,610 26,155 Finance costs (4,055) (33,673) - - (12,082) (49,810) Income tax and social contribution (1,139) (5,252) (6,391) Profit (loss) (6,856) 20, (28) (20,049) (6,066) Total assets 271,219 3,647, , ,896 4,457,054 Total liaibilities 125,378 2,158,810-3, ,486 2,652,374 25

48 7. Cash and cash equivalents and short-term investments Consolidated Parent Note 06/30/ /31/ /30/ /31/2014 Cash Banks checking account 44,033 56, Short-term investments 53, ,697 4, ,831 97, ,617 4, ,625 Transfer to assets held for sale: Cach and cash equivalents 29.2 (23,562) - - Short-term investments 29.2 (35,644) , ,617 4, ,625 Stated as: Cach and cash equivalents 26,336 86,599 1,391 28,598 Short-term investments 11, ,018 3, ,027 Total 38, ,617 4, ,625 Short-term and highly liquid investments which can be immediately converted into a known cash amount and are subject to an insignificant risk of change in value were classified as cash equivalents. These financial investments refer to fixed-income instruments under repurchase agreements yielding rates ranging from 100.5% to % of CDI. Those financial investments corresponding to investment funds which do not have characteristics of cash and cash equivalents were classified in line item short-term investments. The Company s exposure to interest rate risks and a sensitivity analysis of its financial assets and financial liabilities are disclosed in note Trade receivables Note Eletrobras 2,634 1, ,544 4,744 - Câmara de Comercialização de Energia Elétrica - CCEE 26, ,221 60,957 - Others 9, ,708 2, Transfer to assets held for sale 29.2 Trade accounts receivable falling due Consolidated Parent Over due by 90 days 06/30/ /31/ /30/ /31/ ,563 1, ,473 68, (20,365) (1,931) (979) (23,275) - - Total 18, ,198 68, As of June 30, 2015, balances are comprised of receivables and over due, with average collection period of 24 days (Espra and the farms under LER 2009 and LER 2010) and 60 days (the farms under LEN 2011) for which losses on performance are not expected. 26

49 9. Recoverable taxes Consolidated Parent Note 06/30/ /31/ /30/ /31/2014 Withholding Income Tax IRPJ 4,226 3,610 1,023 8,138 Corporate Income Tax (IRPJ) 10,483 9,534 8,134 - COFINS (tax on revenue) IRRF on short-term investments Social Contribution on Net Profit (CSLL) PIS (tax on revenue) Other recoverble taxes Total 15,454 15,064 9,218 8,476 Transfer to assets held for sale 29.2 (2,396) Total 13,058 15,064 9,218 8, Advances to suppliers Consolidated Parent Note 06/30/ /31/ /30/ /31/2014 Advances to suppliers 13,474 8,575 10,945 6,033 Transfer to assets held for sale 29.2 (1,317) Total 12,157 8,575 10,945 6,033 These advances relate to anticipation for legal services and others to the Company as well as the maintenance of its subsidiaries farms. 27

50 11. Collaterals and restricted deposits Consolidated Parent Note 06/30/ /31/ /30/ /31/2014 Collaterals and restricted deposits 173, ,527 1, Transfer to assets held for sale 29.2 (171,926) Total 1, ,527 1, Stated as: Current 1, , Noncurrent 3 160, Total 1, ,527 1, As at June 30, 2015, collaterals and restricted deposits including the balance classified as held for sale are broken down as shown below: Consolidated Company Collateral Contractual Subject 06/30/ /31/2014 Renova Other Property lease/other items 1, Total current 1, Consolidated Company Collateral Institution Rate Contractual Subject 06/30/ /31/2014 LER 2009 Special reserve (a) Citibank 98.70% CDI BNDES Financing 109, ,111 LER 2009 O&M reserve (b) Citibank 98.70% CDI BNDES Financing 4,760 4,536 LER 2009 SD reserve (c) Citibank 98.70% CDI BNDES Financing 43,979 41,908 Espra Guarantee BNB 98.70% CDI BNB Financing 13,682 12,932 Renova Eólica Guarantee Itaú - Debentures 3 - Total noncurrent 171, ,487 The balances refer to short-term fixed-income instruments linked to financing agreements with BNDES and Banco do Nordeste do Brasil ( BNB ). The Company can solely manage these short-term investments upon express authorization of BNDES and BNB. (a) Refers to collateral Special reserve under the BNDES agreement transferred by the SPEs mandatory bank to its direct parent companies. This reserve is entitled to receive the total exceeding resources from the central accounts maintained with the bank and not managed by the subsidiary in order to ensure the full payment of the installments for payment of principal and debt accessories. These collaterals may solely be managed by the subsidiary upon BNDES express authorization. (b) A reserve that the subsidiaries must maintain over the agreement to ensure the payments of the operation and maintenance agreement obligations (O&M). 28

51 (c) A reserve that the subsidiaries must maintain over the agreement to ensure the payments of the financing agreement obligations. 12. Deferred taxes Assets Consolidated Liabilities Note 06/30/ /31/ /30/ /31/2014 PIS deferred COFINS deferred 1,016 1, IRPJ deferred CSLL deferred Total 2,174 2,495 1, Transfer to assets held for sale or liabilities directly related to assets held for sale 29.2 (2,043) - (1,499) , Deferred taxes were recorded based on the differences between generated and effectively invoiced power (note 18). These deferred taxes were calculated using the rates based on the deemed income Changes, net (assets and liabilities) in deferred IRPJ and CSLL Consolidated Balance at December 31, Changes, net 331 Balance at June 30, Balance at December 31, Changes, net (707) Transfer to assets held for sale (193) Balance at June 30, 2015 (8) 29

52 13. Investments 13.1 Breakdown of investments Investments in subsidiaries and jointly controlled entities are as follows: Consolidated Parent Company 06/30/ /31/ /30/ /31/2014 PCH Enerbras Centrais Elétricas S.A. (Holding) - - 2, ,866 Renova PCH LTDA Chipley SP Participações S.A. (Holding) , ,949 Brasil PCH S.A. 692, , Wind farms Nova Renova Energia S.A ,930 1,071,110 Alto Sertão Participações S.A. (Holding) ,458 46,968 Centrais Eólicas Carrancudo S.A ,439 2,955 Centrais Elétricas Botuquara S.A ,506 2,728 Centrais Eólicas Alcacuz S.A ,576 2,682 Centrais Eólicas Tamboril S.A ,304 2,415 Centrais Eólicas Conquista S.A ,354 2,326 Centrais Eólicas Coxilha Alta S.A ,579 2,085 Centrais Eólicas Tingui S.A ,120 2,007 Centrais Eólicas Cansanção S.A ,776 1,358 Centrais Eólicas Macambira S.A ,722 1,958 Centrais Eólicas Imburana de Cabão S.A ,370 1,933 Centrais Eólicas Ipê Amarelo S.A ,669 1,594 Centrais Eólicas Putumuju S.A ,842 1,350 Centrais Eólicas Lençóis S.A ,428 1,310 Centrais Eólicas Anísio Teixeira S.A ,572 1,218 Centrais Eólicas Ico S.A ,324 1,185 Centrais Eólicas Jequitiba S.A , Centrais Eólicas Caliandra S.A , Centrais Eólicas Canjoão S.A , Centrais Eólicas Cabeça de Frade S.A , Centrais Eólicas Embiruçu S.A , Centrais Eólicas Itapuã V LTDA Centrais Eólicas Bela Vista XIV LTDA Centrais Eólicas Umburanas 3 S.A Centrais Elétricas Itaparica S.A ,793 (323) Outras participações (*) Renovapar S.A Power sale Renova Comercializadora de Energia S.A ,865 2,351 Total 692, ,312 1,445,132 1,973,507 30

53 13.2 Information on investees The main information on subsidiaries and jointly controlled entities is broken down as follows: Company Total number of shares Equity interest Renova (%) 06/30/ /31/2014 Capital Equity Total Equity Profit (loss) for Equity (equity number of interest Capital the year** deficiency) shares Renova (%) Proposed dividends Profit (loss) for the year PCH Enerbras Centrais Elétricas S.A. (Holding) 5,170, ,955 2,671 3,280 5,170, , ,866 15,966 2,697 Renova PCH LTDA. 31, (7) 31, (6) Chipley SP Participações S.A. (Holding) 1, , ,200 (20,676) 1, ,949 - (24,736) Wind farms Nova Renova Energia S.A. 870,083, ,083 1,128,662 36, ,083, ,083 1,071,110-70,011 Alto Sertão Participações S.A. (Holding) 12,163, ,164 68,458 (2,213) 12,163, ,164 46,968 - (1,598) Centrais Eólicas Itapuã V LTDA (9) (7) Centrais Eólicas Bela Vista XIV LTDA. 10, (40) 10, Centrais Eólicas Umburanas 3 S.A (35) Centrais Elétricas Itaparica S.A. 51, ,793 (38) 51, (323) - (323) Outras participações (*) (513) (65) Renovapar S.A (4) Centrais Eólicas Carrancudo S.A ,439 (15) ,955 - (23) Centrais Elétricas Botuquara S.A. 21, ,506 (1) 21, ,728 - (6) Centrais Eólicas Alcacuz S.A ,576 (7) ,682 - (33) Centrais Eólicas Tamboril S.A ,304 (7) ,415 - (47) Centrais Eólicas Conquista S.A ,354 (5) ,326 - (6) Centrais Eólicas Coxilha Alta S.A ,579 (4) ,085 - (8) Centrais Eólicas Tingui S.A ,120 (9) ,007 - (207) Centrais Eólicas Cansanção S.A ,776 (5) ,358 - (10) Centrais Eólicas Macambira S.A. 10, ,722 (55) 10, ,958 - (26) Centrais Eólicas Imburana de Cabão S.A ,370 (44) ,933 - (188) Centrais Eólicas Ipê Amarelo S.A ,669 (57) ,594 - (26) Centrais Eólicas Putumuju S.A. 10, ,842 (8) 10, ,350 - (16) Centrais Eólicas Lençóis S.A ,428 (4) ,310 - (6) - CONTINUED 31

54 Company Total number of shares Equity interest Renova (%) 06/30/ /31/2014 Capital Equity Total Equity Profit (loss) for Equity (equity number of interest Capital the year** deficiency) shares Renova (%) Proposed dividends Profit (loss) for the year Centrais Eólicas Anísio Teixeira S.A ,572 (21) ,218 - (19) Centrais Eólicas Ico S.A. 10, ,324 (7) 10, ,185 - (13) Centrais Eólicas Jequitiba S.A ,208 (14) (60) Centrais Eólicas Caliandra S.A. 10, ,737 (57) 10, (43) Centrais Eólicas Canjoão S.A ,491 (8) (15) Centrais Eólicas Cabeça de Frade S.A ,504 (5) (8) Centrais Eólicas Embiruçu S.A ,855 (9) (145) Centrais Eólicas São Salvador S.A (17) Centrais Eólicas Abil S.A (140) Centrais Eólicas Acácia S.A (34) Centrais Eólicas Angico S.A (29) Centrais Eólicas Folha da Serra S.A (158) Centrais Eólicas Jabuticaba S.A (47) Centrais Eólicas Jacarandá do Serrado S.A (100) Centrais Eólicas Taboquinha S.A (29) Centrais Eólicas Tabua S.A (160) Centrais Eólicas Vaqueta S.A (126) Centrais Eólicas Unha d'anta S.A (75) Centrais Eólicas Cedro S.A (117) Centrais Eólicas Vellozia S.A (109) Centrais Eólicas Angelim S.A Centrais Eólicas Facheio S.A (8) Centrais Eólicas Sabiu S.A (32) Centrais Eólicas Barbatimão S.A Centrais Eólicas Juazeiro S.A Centrais Eólicas Jataí S.A (8) Centrais Eólicas Imburana Macho S.A Centrais Eólicas Amescla S.A Centrais Eólicas Umbuzeiro S.A (19) Centrais Eólicas Pau d'água S.A (10) Centrais Eólicas Manineiro S.A (30) Sale Renova Comercializadora de Energia S.A. 58, ,840 (511) 58, ,351 - (1,542) (*) Other companies listed in Note 1. (**) Considering the Company s equity interest. 1,990,839 15,360 1,973,507 15,966 42,288 32

55 13.3 Changes in investments Changes in investments in subsidiaries and jointly controlled entities are as follows: Consolidated Company 12/31/2013 AFCI Share of profit (loss) of Brasil Chipley Jan - Sep (*) Consolidated elimination Loss on gain of equity interest Assgnment of receivables Share of profit (loss) of Brasil PCH Oct - Dec (*) Amortization of appreciation (*) Dividends 12/31/2014 PCH Chipley / Brasil PCH S.A ,943 (7,887) (739,943) (5,259) 754,907 (7,787) (9,168) (11,494) 713,312 Company 12/31/2014 Brasil PCH Share of profit (loss) Amortization of appreciation (*) 06/30/2015 PCH Chipley / Brasil PCH S.A. 713,312 (2,765) (18,152) 692, Changes in equity interests Through September 30, 2014, the Company had the shared control of Chipley, with a 60% equity interest. Beginning October 2014, CEMIG GT completed the transaction mentioned in note 1.1., and Renova became the holder of 100% of the shares. The effects of changes in Chipley s equity interest are shown as follows: Loss on gain of equity interest in Chipley Equity interest through September 30, % Equity interest after September 30, % Equity interest acquired 40% Chipley's equity as of September 30, 2014 (13,145) Loss on gain of equity interest (5,259) 33

56 Shared control investment Brasil PCH S.A. The Company measures its investments in equity interests in joint ventures using the equity method of accounting. On February 14, 2014, Chipley acquired a 51% equity interest in Brasil PCH S.A. and, as a result of the new Shareholders Agreement, obtained the shared control of this venture. Brasil PCH holds 13 small hydroelectric plants (PCHs), with an installed capacity of 291 MW and average guaranteed power of 194 MW. All PCHs have long-term agreements (20 years) for the sale of electric power in the context of PROINFA (physical information and information relating to power capacity measures not reviewed by the independent auditors). Because the company control is shared, Chipley s equity interest in Brasil PCH is recorded under the equity method, as required by IFRS 11 / CPC 19 (R2) Joint Arrangements. As required by CPC 45 (IFRS 12), the financial statements of Brasil PCH (jointly controlled entity) are as follows: BALANCE SHEET AS OF JUNE 30, 2015 ASSETS 06/30/ /31/2014 EQUITY AND LIABILITIES 06/30/ /31/2014 CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents 97,061 85,855 Borrowings and financing 180, ,098 Other 35,558 49,340 Other 148, ,154 Total current assets 132, ,195 Total current liabilities 329, ,252 NONCURRENT ASSETS NONCURRENT LIABILITIES Property, plant and equipment 1,161,653 1,171,028 Borrowings and financing 877, ,957 Other 69, ,321 Other 60,839 60,310 Total noncurrent assets 1,230,903 1,271,349 Total noncurrent liabilities 938,463 1,011,267 EQUITY 95,402 97,025 TOTAL LIABILITIES TOTAL ASSETS 1,363,522 1,406,544 AND EQUITY 1,363,522 1,406,544 34

57 INCOME STATEMENT FOR THE PERIOD ENDED JUNE 30, /30/ /01/2014 to 06/30/2014 NET REVENUE 98, ,087 COSTS OF SALES Depreciation (17,767) (14,879) Cost of operations (12,806) (14,995) Charges on use of distribution system (2,715) (2,177) Total (33,288) (32,051) GROSS PROFIT 65,155 75,036 INCOME (EXPENSES) General and administrative (6,300) (6,273) Depreciation and amortization (3,873) (3,227) Total (10,173) (9,500) PROFIT BEFORE FINANCE INCOME (COSTS) AND INCOME TAXES 54,982 65,536 FINANCE INCOME (COSTS) (56,378) (53,192) PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION (1,396) 12,344 Income tax and social contribution (4,028) (4,274) PROFIT FOR THE PERIOD (5,424) 8,070 35

58 Parent Company 12/31/2013 Transfers Additions AFCI Loss on gain of equity interest Proposed dividends Share of profit (loss) of subsidiarie 12/31/2014 Additions AFCI Proposed dividends Share of profit (loss) of subsidiaries Transfer to assets held for sale 06/30/2015 PCH Enerbras Centrais Elétricas S.A. (Holding) 124, (15,966) 2, , (2,022) 3,280 (109,453) 2,671 Renova PCH LTDA (6) (7) Chipley SP Participações S.A. (Holding) ,943 (5,259) - (24,736) 709,949 4, (20,676) - 694,200 Wind farms Nova Renova Energia S.A. 858,291-72,908 69, ,011 1,071,110-19,794-37,758 (545,732) 582,930 Alto Sertão Participações S.A. (Holding) - 12,164-36, (1,598) 46,968-23,703 - (2,213) - 68,458 Centrais Eólicas São Salvador S.A. 266 (801) (17) Centrais Eólicas Abil S.A. 10 (677) (140) Centrais Eólicas Acácia S.A. 10 (533) (34) Centrais Eólicas Angico S.A. 10 (286) (29) Centrais Eólicas Folha da Serra S.A. 10 (644) (158) Centrais Eólicas Jabuticaba S.A. 10 (337) (47) Centrais Eólicas Jacarandá do Serrado S.A. 10 (646) (100) Centrais Eólicas Taboquinha S.A. 10 (693) (29) Centrais Eólicas Tabua S.A. 10 (370) (160) Centrais Eólicas Carrancudo S.A , (23) 2,955-3,499 - (15) - 6,439 Centrais Elétricas Botuquara S.A , (6) 2,728-3,779 - (1) - 6,506 Centrais Eólicas Alcacuz S.A , (33) 2,682-3,901 - (7) - 6,576 Centrais Eólicas Tamboril S.A , (47) 2,415-4,896 - (7) - 7,304 Centrais Eólicas Conquista S.A. (2) - - 2, (6) 2,326-4,033 - (5) - 6,354 Centrais Eólicas Coxilha Alta S.A. (1) - - 2, (8) 2,085-3,498 - (4) - 5,579 Centrais Eólicas Tingui S.A , (207) 2,007-3,122 - (9) - 5,120 Centrais Eólicas Cansanção S.A. (1) - - 1, (10) 1,358-2,423 - (5) - 3,776 Centrais Eólicas Macambira S.A , (26) 1,958-3,819 - (55) - 5,722 Centrais Eólicas Imburana de Cabão S.A , (188) 1,933-3,481 - (44) - 5,370 Centrais Eólicas Ipê Amarelo S.A , (26) 1,594-3,132 - (57) - 4,669 Centrais Eólicas Putumuju S.A , (16) 1,350-2,500 - (8) - 3,842 Centrais Eólicas Lençóis S.A. (2) - - 1, (6) 1,310-2,122 - (4) - 3,428 Centrais Eólicas Anísio Teixeira S.A. (2) - - 1, (19) 1,218-2,375 - (21) - 3,572 Centrais Eólicas Ico S.A , (13) 1,185-2,146 - (7) - 3,324 - Continued - 36

59 - Continuation - Company 12/31/2013 Transfers Additions AFCI Loss on gain of equity interest Proposed dividends Share of profit (loss) of subsidiarie 12/31/2014 Additions AFCI Proposed dividends Share of profit (loss) of subsidiaries Transfer to assets held for sale 06/30/2015 Centrais Eólicas Jequitiba S.A (60) 807-1,415 - (14) - 2,208 Centrais Eólicas Caliandra S.A (43) 606-1,188 - (57) - 1,737 Centrais Eólicas Canjoão S.A (15) (8) - 1,491 Centrais Eólicas Cabeça de Frade S.A. (2) (8) (5) - 1,504 Centrais Eólicas Embiruçu S.A (145) 538-1,326 - (9) - 1,855 Centrais Eólicas Itapuã V LTDA (7) (9) Centrais Eólicas Bela Vista XIV LTDA (40) Centrais Eólicas Umburanas 3 S.A (35) Centrais Eólicas Vaqueta S.A. 29 (660) (126) Centrais Eólicas Unha d'anta S.A. 1 (342) (75) Centrais Eólicas Cedro S.A. (1) (246) (117) Centrais Eólicas Vellozia S.A. - (544) (109) Centrais Eólicas Angelim S.A. - (616) Centrais Eólicas Facheio S.A. - (467) (8) Centrais Eólicas Sabiu S.A. (1) (378) (32) Centrais Eólicas Barbatimão S.A. - (460) Centrais Eólicas Juazeiro S.A. - (540) Centrais Eólicas Jataí S.A. 1 (465) (8) Centrais Eólicas Imburana Macho S.A. - (464) Centrais Eólicas Amescla S.A. - (386) Centrais Eólicas Umbuzeiro S.A. - (611) (19) Centrais Eólicas Pau d'água S.A. (1) (494) (10) Centrais Eólicas Manineiro S.A. 1 (504) (30) Centrais Elétricas Itaparica S.A. (1) (323) (323) - 7,154 - (38) - 6,793 Outras participações (*) (2) (65) 3-1,290 - (513) Renovapar S.A. (16) (4) Power sale Renova Comercializadora de Energia S.A , (1,542) 2, (511) - 1,840 Total 982,779-85, ,703 (5,259) (15,966) 42,288 1,973,507 4, ,226 (2,022) 16,654 (655,185) 1,445,107 (*) Other companies listed in Note 1 37

60 13.4 Changes in dividends receivable Consolidated Parent Balance as of December 31, ,452 Proposed dividends 11,494 15,966 Dividends received (11,494) (35,879) Balance as of December 31, Proposed dividends - 2,022 Balance as of June 30, ,561 As of June 30, 2015, subsidiary Enerbras had dividends payable in the amount of R$2.561 (December 31, 2014, R$ 539). These amounts were recorded as dividends receivable in the Parent s current assets. 38

61 13.5 Changes in investments in subsidiary Nova Renova The investments made in subholding Nova Renova, which controls Renova Eólica, Salvador Eólica and Bahia Eólica, are broken down as follows: Company 12/31/2014 Additions AFCI Proposed dividends Share of profit (loss) of subsdiaries Transfer to assets held for sale 06/30/2015 Nova Renova Energia S.A (106) Renova Eólica Participações S.A. (2,536) - (106) 9 (38,859) - (41,492) Centrais Eólicas da Prata S.A. 37, ,110-40,946 Centrais Eólicas dos Araçás S.A. 64, ,382-67,914 Centrais Eólicas Morrão S.A. 47, ,813-51,590 Centrais Eólicas Seraíma S.A. 52, ,986-56,030 Centrais Eólicas Tanque S.A. 54, (9) 3,412-57,428 Centrais Eólicas Ventos do Nordeste S.A. 42, ,455-45,523 Centrais Eólicas Ametista S.A. 34,200-2,139-1,541-37,880 Centrais Eólicas Borgo S.A. 22,719-2,410 - (215) - 24,914 Centrais Eólicas Caetité S.A. 39,570-1,870 - (475) - 40,965 Centrais Eólicas Dourados S.A. 35,924-1,804-1,235-38,963 Centrais Eólicas Espigão S.A. 15, (216) - 15,744 Centrais Eólicas Maron S.A. 39,097-1,565-3,541-44,203 Centrais Eólicas Pelourinho S.A. 24,443-4,623 - (491) - 28,575 Centrais Eólicas Pilões S.A. 44,578-3,071-2,529-50,178 Centrais Eólicas Serra do Espinhaço S.A. 21,672-1,633 - (215) - 23,090 Bahia Eólica Participações S.A. 9, ,657 4,714 (20,619) - Centrais Eólicas Candiba S.A. 21, (21,748) - Centrais Eólicas Igaporã S.A. 53, (2,307) 621 (51,703) - Centrais Eólicas Ilhéus S.A. 23, ,652 (25,969) - Centrais Eólicas Licínio de Almeida S.A. 42, (1,469) 1,643 (42,860) - Centrais Eólicas Pindaí S.A. 43, (2,881) 2,761 (43,656) - Salvador Eólica Participações S.A. 31, ,130 9,433 (60,348) - Centrais Eólicas Alvorada S.A. 12, (705) 437 (11,946) - Centrais Eólicas Guanambi S.A. 27, (928) 696 (26,878) - Centrais Eólicas Guirapá S.A. 40, (3,422) 1,026 (37,873) - Centrais Eólicas N. S. Conceição S.A. 36, (3,863) 3,690 (36,559) - Centrais Eólicas Pajeú do Vento S.A. 32, (1,842) 6,340 (37,080) - Centrais Eólicas Planaltina S.A. 36, (2,296) 6,267 (40,090) - Centrais Eólicas Porto Seguro S.A. 12, (13,100) - Centrais Eólicas Rio Verde S.A. 48, (5,276) 3,847 (46,571) - Centrais Eólicas Serra do Salto S.A. 26, (798) 2,608 (28,732) - TOTAL 1,071,110-19,794-37,758 (545,732) 582,930 39

62 13.6 Transfer of control On November 10, 2014, the Company increased the capital of subsidiary Alto Sertão Participações S.A. ( Alto Sertão ) from R$100 to R$12,164, which, in turn, increased the capital of its direct subsidiary Diamantina Eólica Participações S.A. ( Diamantina ) from R$100 to R$12,164, all at the carrying amounts of the investments through the transfer of 100% of the registered common shares, without par value, of its subsidiaries Centrais Eólicas Manineiro, Centrais Eólicas Pau d Água, Centrais Eólicas São Salvador, Centrais Eólicas Abil, Centrais Eólicas Tabua, Centrais Eólicas Jabuticaba, Centrais Eólicas Vaqueta, Centrais Eólicas Jacarandá do Serrado, Centrais Eólicas Taboquinha, Centrais Eólicas Acácia, Centrais Eólicas Folha da Serra, Centrais Eólicas Angico, Centrais Eólicas Jataí, Centrais Eólicas Amescla, Centrais Eólicas Imburana Macho, Centrais Eólicas Juazeiro, Centrais Eólicas Facheio, Centrais Eólicas Sabiu, Centrais Eólicas Umbuzeiro, Centrais Eólicas Unha d'anta, Centrais Eólicas Vellozia, Centrais Eólicas Cedro, Centrais Eólicas Angelim, Centrais Eólicas Barbatimão, as supported by appraisal reports, through the issuance of 12,163,708 new registered common shares without par value. As a result, Diamantina obtained the direct control of said subsidiaries, and Alto Sertão obtained the indirect control of them. This change was necessary due to the financing structure of its wind farms related to LEN 2012 (A-5), LER 2013 and free trading market. The investments made in subholding Alto Sertão, which controls Diamantina, are broken down as follows: 40

63 Company 12/31/2013 Transfer of control AFCI Share of profit (loss) of subsidiaries 12/31/2014 AFCI Share of profit (loss) of subsidiaries 06/30/2015 Alto Sertão Participações S.A. (Holding) (59) - Diamantina Eólica Participações S.A. (Holding) ,644 (1,111) 22,540 Centrais Eólicas Manineiro S.A ,523 (106) 1,921 - (36) 1,885 Centrais Eólicas Pau d'água S.A ,674 (42) 2,126 - (26) 2,100 Centrais Eólicas São Salvador S.A ,359 (47) 2,113 - (21) 2,092 Centrais Eólicas Abil S.A ,172 (184) 2,665 - (67) 2,598 Centrais Eólicas Tabua S.A ,337 (48) 1,659 - (59) 1,600 Centrais Eólicas Jabuticaba S.A (95) 1,028 - (66) 962 Centrais Eólicas Vaqueta S.A ,099 (78) 2,681 - (137) 2,544 Centrais Eólicas Jacarandá do Serrado S.A ,445 (36) 2,055 - (35) 2,020 Centrais Eólicas Taboquinha S.A ,168 (63) 1,798 - (28) 1,770 Centrais Eólicas Acácia S.A ,236 (68) 2,701 - (22) 2,679 Centrais Eólicas Folha da Serra S.A ,480 (37) 2,087 - (73) 2,014 Centrais Eólicas Angico S.A (144) (35) 777 Centrais Eólicas Jataí S.A ,017 (32) 1,450 - (80) 1,370 Centrais Eólicas Amescla S.A ,199 (6) 1,579 - (55) 1,524 Centrais Eólicas Imburana Macho S.A ,262 (52) 1,674 - (21) 1,653 Centrais Eólicas Juazeiro S.A ,387 (60) 1,867 - (20) 1,847 Centrais Eólicas Facheio S.A ,246 (64) 1,649 - (21) 1,628 Centrais Eólicas Sabiu S.A ,142 (62) 1,458 - (13) 1,445 Centrais Eólicas Umbuzeiro S.A ,479 (65) 2,025 - (25) 2,000 Centrais Eólicas Unha d'anta S.A ,931 (90) 3,183 - (40) 3,143 Centrais Eólicas Vellozia S.A ,192 (51) 2,685 - (44) 2,641 Centrais Eólicas Cedro S.A ,220 (49) 1,417 - (28) 1,389 Centrais Eólicas Angelim S.A ,236 (88) 2,764 - (33) 2,731 Centrais Eólicas Barbatimão S.A ,142 (38) 1,564 - (58) 1,506 TOTAL - 12,164 36,402 (1,598) 46,968 23,703 (2,213) 68,458 41

64 14. Property, plant and equipment 14.1 Consolidated Annual depreciation rates % Historical cost 06/30/ /31/2014 Accumulated depreciation Net value Historical cost Accumulated depreciation Net value Property, plant and equipment Generation Land Reservoirs, dams and watermains 3% 95,797 (15,212) 80,585 95,797 (14,467) 81,330 Buildings, civil works and improvements 3% 192,502 (19,344) 173, ,763 (16,428) 120,335 Machinery and equipment 4% 2,247,638 (197,533) 2,050,105 1,825,932 (154,822) 1,671,110 Vehicles 20% 202 (41) (32) 170 Furniture and fixtures 10% 142 (77) (74) 46 IT equipment 20% 245 (222) (209) 36 Measurement towers 20% 23,042 (8,129) 14,913 19,489 (6,141) 13,348 Measurement equipment 20% 2,875 (112) 2, (3) 364 Tower equipment 20% 2,318 (200) 2, Other 20% 6,773 (680) 6,093 6,768 (679) 6,089 Transmission and connection system Buildings, civil works and improvements 3% 5,385 (245) 5,140 5,385 (174) 5,211 Machinery and equipment 4% 267,544 (13,395) 254, ,947 (9,259) 259,688 2,845,058 (255,190) 2,589,868 2,361,561 (202,288) 2,159,273 Administration Machinery and equipment 10% 5,199 (645) 4,554 3,958 (394) 3,564 Improvements 10% 2,036 (245) 1,791 1,949 (206) 1,743 Furniture and fixtures 10% 7,605 (1,454) 6,151 7,492 (1,080) 6,412 Software 20% 3,637 (1,598) 2,039 3,480 (1,325) 2,155 IT equipment 20% 3,630 (1,360) 2,270 2,980 (997) 1,983 22,107 (5,302) 16,805 19,859 (4,002) 15,857 Transfer to assets held for sale (Note 29.2) (1,572,983) 208,818 (1,364,165) Total construction in progress 1,294,182 (51,674) 1,242,508 2,381,420 (206,290) 2,175,130 Construction in progress Generation Unapportioned 400, , , ,769 Studies and projects 23,785-23,785 23,757-23,757 Land 16,900-16,900 11,325-11,325 Buildings, civil works and improvements 149, , , ,470 Measurement towers 10,527-10,527 3,285-3,285 Wind generators 426, , , ,307 Substation equipment 136, ,215 87,804-87,804 Advances to suppliers 953, , , ,196 Social projects- BNDES Total construction in progress 2,117,733-2,117,733 1,791,913-1,791,913 Total property, plant and equipment 3,411,915 (51,674) 3,360,241 4,173,333 (206,290) 3,967,043 42

65 14.2 Changes in property, plant and equipment (consolidated) 12/31/2014 Additions Write-offs Reclassifications Transfer to assets held for 03/31/2015 sale Property, plant and equipment Cost Generation Plant Land (595) - Reservoirs, dams and watermains 95, (95,797) - Buildings, civil works and improvements 136, ,538 (127,734) 64,768 Machinery and equipment 1,825,932 1, ,975 (1,252,957) 994,681 Vehicles (202) - Furniture and fixtures (142) - IT equipment (245) - Measurement towers 19,489 3, ,042 Measurement equipment 367 2, ,875 Tower equipment ,318 Other 6, (6,773) - Transmission and connection system Buildings, civil works and improvements 5, (1,668) 3,717 Machinery and equipment 268,947 - (1,403) - (86,503) 181,041 2,361,561 8,513 (1,403) 476,387 (1,572,616) 1,272,442 Administration Machinery and equipment 3,958 1, (139) 5,060 Improvements 1, ,036 Furniture and fixtures 7, (210) 7,395 Software 3, ,637 IT equipment 2, (18) 3,612 19,859 2, (367) 21,740 Total property, plant and equipment - cost 2,381,420 10,761 (1,403) 476,387 (1,572,983) 1,294,182 (-) Depreciation Generation Plant Reservoirs, dams and watermains (14,467) (745) ,212 - Buildings, civil works and improvements (16,428) (2,916) ,517 (1,827) Machinery and equipment (154,822) (42,711) ,408 (31,125) Vehicles (32) (9) Furniture and fixtures (74) (3) IT equipment (209) (13) Measurement towers (6,141) (1,988) (8,129) Measurement equipment (3) (109) (112) Tower equipment - (200) (200) Other (679) (1) Transmission and connection system Buildings, civil works and improvements (174) (71) (99) Machinery and equipment (9,259) (4,136) - - 8,454 (4,941) (202,288) (52,902) ,757 (46,433) Administration Machinery and equipment (394) (251) (641) Improvements (206) (39) (245) Furniture and fixtures (1,080) (374) (1,415) Software (1,325) (273) (1,598) IT equipment (997) (363) (1,342) (4,002) (1,300) (5,241) Total property, plant and equipment - depreciation (206,290) (54,202) ,818 (51,674) Total property, plant and equipment 2,175,130 (43,441) (1,403) 476,387 (1,364,165) 1,242,508 - CONTINUED - 43

66 - CONTINUATION - 12/31/2014 Additions Write-offs Reclassifications Transfer to assets held for sale 06/30/2015 Construction in progress Generation Unapportioned 348, ,710 - (76,548) - 400,931 Studies and projects 23, (3) - 23,785 Land 11,325 8,191 - (2,616) - 16,900 Buildings, civil works and improvements 115,470 89,457 - (55,538) - 149,389 Measurement towers 3,285 8,663 - (1,421) - 10,527 Wind generators 549, ,534 - (292,780) - 426,061 Substation equipment 87,804 95,018 - (46,607) - 136,215 Advances to suppliers 652, ,110 - (874) - 953,432 Social Pojects- BNDES Total construction in progress 1,791, ,207 - (476,387) - 2,117,733 Total property, plant and equipment 3,967, ,766 (1,403) - (1,364,165) 3,360,241 44

67 12/31/2013 Additions Write-offs Reclassifications 12/31/2014 Property, plant and equipment Cost Generation Plant Land Reservoirs, dams and watermains 95, ,797 Buildings, civil works and improvements 127, , ,763 Machinery and equipment 1,242,337 7, ,805 1,825,932 Vehicles Furniture and fixtures IT equipment Measurement towers 9,086 10, ,489 Measurement equipment Tower equipment Other 6, ,768 Transmission and connection system Buildings, civil works and improvements 1, ,717 5,385 Machinery and equipment 87, , ,947 1,572,143 20, ,196 2,361,561 Administration Machinery and equipment 2,167 1, ,958 Improvements 2, (371) - 1,949 Furniture and fixtures 3,223 4, ,492 Software 2,472 1, ,480 IT equipment 1,650 1, ,980 11,816 8,016 (371) ,859 Total property, plant and equipment - cost 1,583,959 28,238 (371) 769,594 2,381,420 (-) Depreciation Generation Plant Reservoirs, dams and watermains (12,232) (2,235) - - (14,467) Buildings, civil works and improvements (10,990) (5,438) - - (16,428) Machinery and equipment (89,799) (65,023) - - (154,822) Vehicles (2) (30) - - (32) Furniture and fixtures (62) (12) - - (74) IT equipment (170) (39) - - (209) Measurement towers (3,839) (2,302) - - (6,141) Measurement equipment - (3) (3) Other (356) (323) - - (679) Transmission and connection system Buildings, civil works and improvements (80) (94) - - (174) Machinery and equipment (4,378) (4,881) - - (9,259) (121,908) (80,380) - - (202,288) Administration Machinery and equipment (91) (303) - - (394) Improvements (243) (158) (206) Furniture and fixtures (680) (400) - - (1,080) Software (776) (549) - - (1,325) IT equipment (599) (398) - - (997) (2,389) (1,808) (4,002) Total property, plant and equipment - depreciation (124,297) (82,188) (206,290) Total property, plant and equipment 1,459,662 (53,950) (176) 769,594 2,175,130 CONTINUED - 45

68 - CONTINUATION - 12/31/2013 Additions Write-offs Reclassifications 12/31/2014 Construction in progress Generation Unapportioned 237, ,319 - (146,988) 348,769 Studies and projects 27,102 3,293 (3,832) (2,806) 23,757 Land 12,462 4,049 - (5,186) 11,325 Buildings, civil works and improvements 183,853 31,507 - (99,890) 115,470 Measurement towers 4, (1,225) 3,285 Wind generators 895, ,529 - (457,086) 549,307 Substation equipment 113,417 33,389 - (59,002) 87,804 Advances to suppliers 171, ,025-2, ,196 Total construction in progress 1,645, ,516 (3,832) (769,594) 1,791,913 Total property, plant and equipment 3,105, ,566 (4,008) - 3,967, Parent Annual depreciation rates % Historical cost 06/30/2015 Accumulated depreciation Net value Historical cost 12/31/2014 Accumulated depreciation Net value Property, plant and equipment Generation Measurement towers 20% 23,042 (8,129) 14,913 19,489 (6,141) 13,348 Measurement equipment 20% 2,875 (112) 2, (3) 364 Tower equipment 20% 2,318 (200) 2, ,235 (8,441) 19,794 20,807 (6,144) 14,663 Administration Machinery and equipment 10% 5,060 (641) 4,419 3,890 (392) 3,498 Improvements 10% 2,036 (245) 1,791 1,949 (206) 1,743 Furniture and fixtures 10% 7,395 (1,415) 5,980 7,291 (1,048) 6,243 Software 20% 3,586 (1,598) 1,988 3,480 (1,325) 2,155 IT equipment 20% 3,612 (1,342) 2,270 2,963 (980) 1,983 21,689 (5,241) 16,448 19,573 (3,951) 15,622 Total property, plant and equipment 49,924 (13,682) 36,242 40,380 (10,095) 30,285 Construction in progress Generation Unapportioned 203, , , ,277 Studies and projects 23,785-23,785 23,757-23,757 Land 2,612-2,612 2,612-2,612 Advances to suppliers 571, , , ,908 Total consctruction in progress 801, , , ,554 Total property, plant and equipment 851,282 (13,682) 837, ,934 (10,095) 788,839 46

69 14.4 Changes in property, plant and equipment (parent) 12/31/2014 Additions Reclassifications 06/30/2015 Property, plant and equipment Generation Measurement towers 19,489 3, ,042 Measurement equipment 367 2,508-2,875 Tower equipment ,318 20,807 6, ,235 Administration Machinery and equipment 3,890 1,170-5,060 Improvements 1, ,036 Furniture and fixtures 7, ,395 Software 3, ,586 IT equipment 2, ,612 19,573 2,116-21,689 Total property, plant and equipment - cost 40,380 8, ,924 (-) Depreciation Generation Measurement towers (6,141) (1,988) - (8,129) Measurement equipment (3) (109) - (112) Tower equipment - (200) - (200) (6,144) (2,297) - (8,441) Administration Machinery and equipment (392) (249) - (641) Improvements (206) (39) - (245) Furniture and fixtures (1,048) (367) - (1,415) Software (1,325) (273) - (1,598) IT equipment (980) (362) - (1,342) (3,951) (1,290) - (5,241) Total property, plant and equipment - depreciation (10,095) (3,587) - (13,682) Total property, plant and equipment 30,285 5, ,242 Construction in progress Generation Unapportioned 160,277 43, ,747 Studies and projects 23, (3) 23,785 Land 2, ,612 Advances to suppliers 571, (874) 571,214 Total construction in progress 758,554 43,678 (874) 801,358 Total property, plant and equipment 788,839 48, ,600 47

70 12/31/2013 Additions Writeoffs Capital payment - Wind power SPEs Reclassifications 12/31/2014 Property, plant and equipment Generation Measurement towers 9,086 10, ,489 Measurement equipment Tower equipment ,086 11, ,807 Administration Machinery and equipment 2,138 1, ,890 Improvements 2, (371) - - 1,949 Furniture and fixtures 3,171 4, ,291 Software 2,472 1, ,480 IT equipment 1,632 1, ,963 11,717 8,227 (371) ,573 Total property, plant and equipment - cost 20,803 19,948 (371) ,380 (-) Depreciation Generation Measurement towers (3,839) (2,302) (6,141) Measurement equipment - (3) (3) (3,839) (2,305) (6,144) Administration Machinery and equipment (90) (302) (392) Improvements (243) (158) (206) Furniture and fixtures (658) (390) (1,048) Software (776) (549) (1,325) IT equipment (583) (397) (980) Total property, plant and equipment - depreciation (6,189) (4,101) (10,095) Total property, plant and equipment 14,614 15,847 (176) ,285 Construction in progress Generation Unapportioned 123,354 86,921 - (49,077) (921) 160,277 Studies and projects 27,102 3,293 (3,832) - (2,806) 23,757 Land 2, ,612 Advances to suppliers 40, , , ,908 Total construction in progress 193, ,377 (3,832) (49,077) - 758,554 Total property, plant and equipment 207, ,224 (4,008) (49,077) - 788,839 48

71 14.5 Property, plant and equipment The Company and its subsidiaries did not identify evidence of impairment of property, plant and equipment. ANEEL, in accordance with the Brazilian regulatory framework, defines the economic useful lives of the power generation assets, with periodical reviews on the estimates. The rates established by ANEEL are recognized as a reasonable estimate of the useful life of the assets. Accordingly, these rates were used as the basis for depreciation of property, plant and equipment. According to articles 63 and 64 of Decree 41019/1957, those assets and facilities used in the power generation, transmission, distribution and sale are linked to these services and cannot be removed, sold, assigned or provided as pledge without the prior and express authorization of the regulatory body. ANEEL, through SFF/ANEEL Letter 459/2001, authorized the assignment of the emerging rights, assets and facilities for the concession of Serra da Prata Hydroelectric Complex, pledged as collateral for the obligations assumed by the Company in the context of the direct financing Construction in progress Property, plant and equipment in progress include investments in water projects, divided into inventories and basic projects already authorized by ANEEL. They also include investments in the wind projects which won LEN 2011 (A-3), five plants which did not start commercial operations, LEN 2012 (A-5), LER 2013 and projects traded in the free market which are under construction through the Company s subsidiaries. The investments include amounts to purchase wind power generators, civil works, substations and sundry costs. As at June 30, 2015, the consolidated balance of advances to suppliers amounts to R$953,432 (December 31, 2014, R$652,196), comprised of the following: an advance to purchase measurement towers with IEM, in the amount of R$466, an advance under a substation equipment supply agreement entered into with ABB Ltda., Metalurgica Santa Rita and Sadesul, in the amount of R$114,075, an advance to purchase wind power generators, in the amount of R$672,729, with GE, Alstom and others, an advance to assemble wind generators, in the amount of R$77, with Mammoet, an advance for civil works, in the amount of R$115,214, with Consórcio MGT and others, an advance for solar equipments in the amount of R$6,427, an advance for sundry services related to the compliance with environmental requirements by wind plant facilities and other, in the amount of R$4,044, and an advance to acquire a project in the amount of R$40,000. Amounts to be apportioned refer mainly to project costs, with the implementation of plants and capitalized interest. As of June 30, 2015 and 2014, capitalized interest in the period amounts to R$33,019 and R$27,272, respectably Project breakdown As of June 30, 2015, property, plant and equipment in progress totals R$2,117,733, broken down as follows: 49

72 Projects Consolidated LEN 2011 (A-3) 474,157 LEN 2012 (A-5) 32,420 LER ,069 LEN 2013 (A-5) 42,668 Subtotal - Regulated market 948,314 Subtotal - Free trading market 969,515 - Other construction in progress 199,904 Total construction in progress 2,117, Write-off of projects The Company reviews its portfolio of basic projects and inventories on a quarterly basis. After reviewing its portfolio of development of small hydroelectric plant projects, the Company verified there is no inventory projects to be discontinue. As at December 31, 2014, the total amount R$3,832 was elected to discontinue the inventory projects. 15. Trade payables Consolidated Parent Note 06/30/ /31/ /30/ /31/2014 Trade payables 290, ,200 11,532 10,989 Transfer to liabilities directly related to assets held for sale 29.2 (11,840) , ,200 11,532 10,989 As of June 30, 2015, the consolidated balance of trade payables mainly includes the amounts relating to the agreements for supply of equipment and materials contracted for the construction of plants under LEN 2011 (A- 3), LER 2013, LEN 2012 (A-5), free trading market, among others, relating to wind power generators, substations and civil construction. 50

73 16. Borrowings, financing and debentures 16.1 Consolidated Consolidated 06/30/ /31/2014 Current Noncurrent Grand total Current Noncurrent Grand total Local currency Debt cost Finance charges Principal Total Finance charges Principal Total Finance charges Principal Total Finance charges Principal Total BNDES - LER 2009 (a) TJLP % p.a. 1,827 40,675 42, , , ,522 1,730 40,682 42, , , ,145 BNDES - LER 2009 (a) TJLP % p.a ,955 20, , , , ,959 20, , , ,231 BNDES - LER 2009 (Tranche "C") (a) TJLP ,959 1,959 2, ,163 2,163 2,699 BNDES - LER 2009 (Tranche "D") (a) TJLP ,094 3,094 4, ,005-3,253 3,253 4,258 FNE - Banco do Nordeste do Brasil S.A. - Espra (b) 9.5% p.a. (8.08% p.a.)* 23 5,712 5,735-88,044 88,044 93,779-5,896 5,896-90,739 90,739 96,635 Promissory Notes - LEN 2011 (e) 100% CDI % p.a , , , ,598 Finep - CEOL Itaparica (f) 3.5% p.a ,346 6,346 6, ,356 6,356 6,356 BNDES - Renova Eólica (a) TJLP % 8,122 31,284 39,406 13, , , ,635 1,097 21,449 22,546 1, , , ,010 BNDES - Renova Eólica (a) TJLP % 3,697 11,515 15,212 4, , , ,654 1,855 4,464 6,319 2, , , ,071 BNDES - Renova Eólica (Tranche "P") (a) TJLP ,320 1,320 1, ,320 1,323 1,323 BNDES - Ponte I Diamantina Eólica (Tranche "A") (d) TJLP % 1, , , , , , ,061 BNDES - Ponte I Diamantina Eólica (Tranche "B") (d) TJLP + 2.5% 2, , , , ,000 75,000 75,033 Subtotal borrowings 19, , ,251 18,664 1,743,106 1,761,770 2,317,021 11, , ,243 3,227 1,924,950 1,928,177 2,284,420 Borrowing costs - (1,181) (1,181) - (10,742) (10,742) (11,923) - (801) (801) - (11,126) (11,126) (11,927) Transfer to liabilities directly related to assets held for sale (Note 29.2) (2,805) (67,249) (70,054) - (859,518) (859,518) (929,572) TOTAL BORROWINGS AND FINANCING 16, , ,016 18, , ,510 1,375,526 11, , ,442 3,227 1,913,824 1,917,051 2,272,493 *15% timely payment bonus Debentures - 3rd issuance - Renova Energia S.A. (c) % CDI 3,458-3, , , , , , ,269 Debentures - 1st issuance - Renova Eólica Participações S.A. (g) IPCA % p.a ,593 5, , , , ,676 73,676 74,343 Subtotal debentures 3,990 4,593 8, , , , , , ,612 Borrowing costs - (1,007) (1,007) - (9,070) (9,070) (10,077) - (52) (52) - (1,361) (1,361) (1,413) TO TAL DEBENTURES 3,990 3,586 7, , , , (52) , , ,199 51

74 16.2 Parent Parent 06/30/ /31/2013 Current Noncurrent Grand Current Noncurrent Grand Finance charges Principal Total Principal Total total Finance charges Principal Total Principal Total total Local currency Debt cost Debentures - 3rd issuance - Renova Energia S.A. (c) % CDI 3,458-3, , , , , , ,269 Borrowing costs - (904) (904) (8,237) (8,237) (9,141) - (52) (52) (1,361) (1,361) (1,413) TO TAL DEBENTURES 3,458 (904) 2, , , , (52) , , ,856 52

75 16.3 Collaterals As at June 30, 2015, the balance payable of borrowings and financing is collateralized as follows: BNDES (a) BNB (b) Debentures (c) Total Receivables 7,748, ,052-8,231,060 Pledge of shares 1,129, ,123 1,242,075 2,484,150 Mortgage/Sale of assets 2,394, ,394-2,563,732 Surety - money 158,247 13, ,929 Total 11,430, ,251 1,242,075 13,450, Changes Changes in borrowings, financing and debentures are as follows: Consolidated Parent Principal Finance charges Total Principal Finance charges Total Balances as of December 31, ,320,045 70,211 2,390, ,064 36, ,267 Borrowings and financing 2,006,419-2,006, , ,000 Accrued finance charges - 110, ,012-27,314 27,314 Finance charges paid - (240,518) (240,518) - (81,183) (81,183) Finance charges capitalized - 99,497 99,497-17,935 17,935 Finance charges added to the principal 23,972 (23,972) Financing and debentures repayment (1,517,912) - (1,517,912) (301,883) - (301,883) Borrowing costs (3,149) - (3,149) Recognition of borrowing costs 1,061-1, Borrowing costs capitalized Balances as of December 31, ,830,462 15,230 2,845, , ,856 Borrowings and financing 383, , Accrued finance charges - 101, ,752-29,031 29,031 Finance charges paid - (86,473) (86,473) - (33,359) (33,359) Finance charges capitalized - 33,021 33,021-7,517 7,517 Financing and debentures repayment (307,138) - (307,138) Finance charges added to the principal 21,791 (21,791) Borrowing costs (9,838) - (9,838) (8,254) - (8,254) Recognition of borrowing costs 1,151-1, Transferência para passivos diretamente associados a ativos mantidos para venda (926,767) (2,805) (929,572) Balances as of June 30, ,993,619 38,934 2,032, ,859 3, ,317 53

76 16.5 Maturity of non-current amounts (principal and finance charges) Maturities of the amounts classified in noncurrent liabilities (consolidated) are as follows: 06/30/2015 Maturity year Consolidated Parent , , ,877 71, ,159 71, ,207 71, to ,042, , to , ,889 - Total 2,420,291 (*) 500,000 (*) (*) This amount does not include borrowings costs 16.6 Summary of agreements (a) BNDES agreements (long term) LER 2009 Subsidiaries Pajeú do Vento, Planaltina, Porto Seguro, Nossa Senhora da Conceição, Guirapá, Serra do Salto, Guanambi, Alvorada and Rio Verde, with the intermediation of subsidiary Salvador Eólica, entered into a financing agreement with BNDES in the total amount of R$586,677. Financing is subject to interest rates of 1.92% p.a. + Long-term Interest Rate (TJLP), payable in 16 years. The first installment fell due on May 15, 2013 and the last will mature on April 15, The nine plants total 195.2MW of installed capacity and average 84 MW of contracted firm power. In April 2014, the last installment of the financing agreement, in the amount of R$4,370, was released. The total amount financed for Porto Seguro and Serra do Salto plants includes subloan D, which is designed for social investments, in the total amount R$6,400. The financing is subject to TJLP rate, with a two-year grace period for interest payment and a six-year grace period for principal repayment. The first installment fell due on May 15, 2013 and the last will mature on May 15, In April 2014, the last installment of the financing agreement, in the amount of R$2,500, was released Subsidiaries Candiba, Igaporã, Ilhéus, Licínio de Almeida and Pindaí, with the intermediation of subsidiary Bahia Eólica, entered into a financing agreement with BNDES, in the total amount of R$297,380. Financing is subject to interest rates of 2.18% p.a. + TJLP (Long-Term Interest Rate) and 16 years for principal repayment. The first installment fell due on April 15, 2013 and the last will mature on March 15, The five plants total an installed capacity of 99.2 MW and average contracted firm power of 43 MW. In April 2014, the last installment of the financing agreement, in the amount of R$192, was released. The total amount financed for Candiba and Ilhéus includes subloan C, which is designed for social investments, in the total amount R$3,000. The financing is subject to TJLP rate, with a two-year grace period for interest payment and a six-year grace period for principal amortization. The first installment fell due on January 15,

77 and the last will mature on December 15, In April 2014, the last installment of the financing agreement, in the amount of R$248, was released All BNDES contracts are collateralized by pledged shares, collateral assignment of credit and emerging rights, financed assets, bank guarantee letter during the construction and first year of commercial operations and reserve accounts equivalent to three months of debt service and three months of operation and maintenance. Under this operation, the Debt Service Coverage Ratio (ICSD) = [(activity cash generation + closing cash balance from prior year)/debt service] must be greater than or equivalent to 1.3. As of June 30, 2015, this ratio was met. LER 2010 and LEN 2011 (A-3) Subsidiary Renova Eólica, with the intermediation of subsidiaries Ametista, Araças, Borgo, Caetité, Dourados, Espigão, Maron, Morrão, Pelourinho, Pilões, Da Prata, Seraíma, Serra do Espinhaço, Tanque, Ventos do Nordeste, its direct subsidiary Nova Renova and the Company obtained a financing in the amount of R$1,044,100 (a direct agreement executed on June 4, 2014, in the amount of R$734,020, and a transfer agreement entered into with Banco do Brasil, in the amount of R$310,080). As of June 30, 2015, the amount released was R$910,077, which was used to settle the bridge loan obtained from BNDES, in the amount of R$647,894 and the remainder part of promissory notes, in the amount of R$251,200. The direct BNDES financing will be divided into 16 tranches, from A to P, having the followings features: (a) tranches A, C, D, E, F, G, I, J, M and P will have a use and grace period through December 15, 2015, with a repayment term of 192, in monthly consecutive installments, each one in the amount of the debt principal falling due, divided by the number of installments yet to fall due. The first installment will mature on January 15, 2016 and the last, on December 15, 2031; and (b) tranches B, H, K, L, N and O have a use and grace period through December 15, 2014, with a repayment term of 192, in monthly consecutive installments, each one in the amount of the debt principal falling due, divided by the number of installments yet to fall due. The first installment fell due on January 15, 2015 and the last will mature on December 15, Tranches A, B, C, D, E, F, G, H, I, J, K, L, M, N and O are subject to interest rates of 2.45% p.a.+ TJLP where Tranche P is subject to TJLP. The transfer agreement with Banco do Brasil is subject to a rate of 2.60% p.a. + TJLP. All agreements entered into with BNDES are collateralized by pledged shares, collateral assignment of receivables and emerging rights, financed assets, bank guarantee letter and reserve accounts equivalent to three months of debt service and three months of operation and maintenance. Under this transaction, the Debt Service Coverage Ratio (ICSD) = [(activity cash generation + closing cash balance from prior year)/debt service] must be greater than or equivalent to 1.3 calculated at the end of the year. As of June 30, 2015, this ratio was met. (b) BNB agreement Subsidiary Espra, with the intermediation of subsidiary Enerbras, obtained a financing with BNB on June 30, 2006, in the total amount of R$120,096. The agreements are subject to an interest rate of 9.5% p.a. (which can be reduced to 8.08% due to the 15% timely payment bonus) payable monthly on the 30th of each month. The agreement matures on June 30, The contracted amount was fully released. 55

78 This financing is collateralized by property mortgage of Serra da Prata Complex, pledged shares, pledged emerging rights of Authorization Resolutions, right to receive any and all amounts that, actually or potentially, are or may become payable by the Concession Grantor to Espra, all other tangible or intangible rights of the respective Authorization Resolutions and liquidity fund in reserve account (note 11). The financing agreement with BNB does not include covenants requiring compliance with financial ratios subject to accelerated payment of the debt. (c) Simple, nonconvertible debentures On December 15, 2014, a new debenture (3 rd issuance) was issued in the amount of R$500,000. The proceeds from this debenture were used to prepay the already existing debenture (2 nd issuance) in the amount of R$370,754, generating an additional cash for the Company in the amount of R$129,246. The 3 rd issuance debenture yields the same as the 2 nd issuance one (123.45% of CDI), with a grace period of four years as from the agreement signature date. The amortization will begin on December 15, 2018 with annual consecutive installments through December 15, Interest will be paid in semi-annual installments, with no grace period, in June and December of each year, with the first payment falling due on June 15, The 3 rd issuance of debentures was made in accordance with CVM Instruction 476, as resolved by the Company s Board of Directors meeting of December 17, 2014 ( RCA ). Debentures have no restructuring clause. The debentures are collateralized by the pledge of 100% of the Enerbras shares owned by the Company and collateral assignment of assets and rights deposited in restricted account with Banco do Brasil from the dividends distributed by subsidiaries Enerbras and Nova Renova. This transaction sets forth that the ICSD (Debt Service Coverage Ratio = dividends received/debt service) must be greater than or equivalent to 1.0. The debt service is represented by the payment of principal and interest of the falling due series in each year of verification. As of June 30, 2015, this ratio was met. (d) BNDES (short-term) On December 19, 2014, a short-term financing agreement was entered into between BNDES and Diamantina, in the total amount of R$700,000, divided into two tranches: tranche A, in the amount of R$140,000, and tranche B, in the amount of R$560,000, for wind farms under LEN 2012 (A-5), LER 2013 and free trading market. As at June 30, 2015, the amount of R$418,000 had been released. The bridge loans will be settled on June 15, 2016 or on the date the long-term financing with BNDES is released. The principal of tranche A will be subject to interest of 3.55% p.a. above TJLP. The principal of tranche B will be subject to interest of 2.50% p.a. above TJLP. The loans are collateralized by the shares issued by Diamantina and the SPEs in which Diamantina holds shares. This agreement does not include covenants requiring compliance with financial ratios subject to accelerated payment of the debt. (e) Promissory notes On November 05, 2013, the indirect subsidiaries which are part of the wind farms under LER 2010 and LEN 2011 (A-3) issued commercial promissory notes, for public distribution with restrict placement efforts, in the amount of 56

79 up to R$400,000 and pursuant to CVM Instruction 476. The distribution is financially settled through CETIP and the commercial bills were deposited in the name of the respective holder as registered with CETIP s Electronic Custody System. The promissory notes will be subject to compensatory interest calculated based on the accumulated variation of 100% of the daily average interbank deposit (DI) rate, over extra group, plus a surcharge of 0.98% per year. On April 30, 2014, these indirect subsidiaries settled the commercial promissory notes, in the amount of R$400,000 (principal) plus interest for the period and renegotiated the issuance of new promissory notes for an additional period of 6 months as from April 30, 2014, in the amount of R$400,000, under the same financial conditions as those of the first issuance. On August 29, 2014, when the second tranche of the agreement with BNDES was released, part of the promissory notes was settled, thus remaining a balance of the principal in the amount of R$251,200. On February 02, 2015, promissory notes issued against eight companies under LEN 2011 (A-3) were settled, in the total amount of R$259,316, out of which R$251,200 relating to the principal and R$8,116 relating to interest. (f) FINEP On December 19, 2013, subsidiary Centrais Elétricas Itaparica S.A. entered into a financing agreement with Financiadora de Estudos e Projetos - FINEP, in the amount of R$107,960. The funds from this financing will be used to implement a hybrid and wind power generation and distribution plant. The financing is subject to interest of 3.5% p.a., with a grace period of 36 months, which covers the period from the agreement signature date and to the date of maturity of the amortization installment, payable in 85 installments, with the first one falling due on January 15, 2017 and the last on January 15, Through June 30, 2015, the amount of R$6,346 had been released. This financing is collateralized by bank letters of guarantee in an amount equivalent to 50% of each release, plus finance charges, and the finance assets (equipment). (g) Infrastructure debentures On November 15, 2014, the 1 st issuance of simple, non-convertible debentures, occurred, subject to collateral and an additional unsecured guarantee, in two series ( Debentures ), for public distribution, with restrict placement efforts, of the Company s indirect subsidiary, Renova Eólica, in the total amount of R$146,000. The 1 st series debentures are subject to IPCA + prefixed interest of % p.a. where those of the 2 nd series are subject to IPCA + prefixed interest of % p.a. Debentures were issued as infrastructure debentures, considering the classification of the ventures as priority projects, under the ordinances issued by the Ministry of Mines and Energy (MME). The proceeds from these debentures will be allocated to LER 2010 and LEN 2011 (A-3) in order to supplement the BNDES financing for acquisition of new assets. The first series in the amount of R$73,000 was settled in December 2014 and the second series, also in the amount of R$73,000, was settled in January The amortization began on June 15, 2016 with semi-annual, consecutive installments through December 15, The interest is payable in semi-annual installments, with no grace period, in June and December of each year. 57

80 Under this transaction, the Debt Service Coverage Ratio (ICSD) = [(activity cash generation + closing cash balance from prior year)/debt service] must be greater than or equivalent to 1.3 calculated at the end of the year. As of June 30, 2015, this ratio was met. On January 21, 2015, the 2 nd series of debentures of the indirect subsidiary Renova Eólica, in the amount of R$73,000, was settled. The amount was inflation adjusted based on IPCA + prefixed interest of % p.a., from the issuance date, November 15, 2014 to the settlement date, of R$75, Taxes payable Consolidated Parent Note 06/30/ /31/ /30/ /31/2014 IRPJ 6,191 4, COFINS 1,881 3, CSLL 3,522 2, INSS (third parties) 1,175 1, INSS 1,535 1,315 1,532 1,315 IRRF (payroll) 672 1, FGTS ISS 3, PIS PIS, COFINS and CSLL IRRF 2, Other TOTAL 22,094 17,561 3,727 3,002 Transfer to assets held for sale or liabilities directly related to assets held for sale 29.2 (6,267) TOTAL 15,827 17,561 3,727 3,002 58

81 18. Accounts payable / receivable - CCEE/Eletrobras Consolidated Assets Liabilitties Note 06/30/ /31/ /30/ /31/2014 Current Eletrobras ,559 21,174 CCEE 1, ,165 1, ,559 22,339 Noncurrent CCEE 22,092 6,100 7,777 15,627 Transfer to assets held for sale or liabilities directly related to assets held for sale: 29.2 Current Eletrobras - - (21,559) - CCEE (1,294) Noncurrent CCEE (19,878) - (5,849) - Total 2,214 6,299 1,928 37,966 Stated as: Current ,339 Noncurrent 2,214 6,100 1,928 15,627 Eletrobras The Power Purchase and Sale Agreement, entered into the indirect subsidiary Espra and Eletrobras, sets forth that the sales revenues in the context of the CCEE is determined each year (from January to December). The financial adjustment portion resulting from this calculation will be offset in the monthly invoices of the next year. In the period ended June 30, 2015, the generated power volume (58,362 MWh) was lower than the invoice power volume (82,080 MWh), which resulted after accounting of the Power Relocation Mechanism (MRE) in the context of the CCEE system for sharing the hydrological risks of the generators in a negative financial adjustment in the amount of R$3,160 (December 31, 2014, R$21,174). These provisions were transferred to the item "liabilities directly associated with assets held for sale". CCEE The Reserve Power Agreements entered into the indirect subsidiaries under LER 2009, LER 2010 and CCEE set forth that the differences between the power generated by plants and contracted power are calculated in each contractual year. The reimbursement for negative deviations (below the tolerance level 10%) of generation will be paid in 12 equal monthly installments over the next agreement, at 115% of the current sales price, as set forth in subclause 11.3 of such agreement. The returns within the tolerance level 10% of generation will be reimbursed in 12 installments after possible offset against the positive deviations as from the end of the first four-year period, counted from the startup in commercial operation. 59

82 The reimbursement for positive deviations (above the tolerance level 30%) of generation will be paid in 12 equal monthly installments over the next agreement, at 70% of the current sales price, as set forth in subclause 8.11 of such agreement. The returns within the tolerance level 30% of generation will be reimbursed in 12 installments after possible offset against the negative deviations as from the end of the first four-year period, counted from the startup in commercial operation. As of March 31, 2014, the Company reversed the provision for fines relating to the reimbursement of LER 2010 (see note 1.3). (*) Information not reviewed by independent auditors Changes Changes in the period are as follows: Changes in assets 12/31/2013 Additions Receipts 12/31/2014 Additions Receipts Transfer to assets held for sale 06/30/2015 CCEE - 6,299-6,299 17,087 - (21,172) 2,214 Total assets - 6,299-6,299 17,087 - (21,172) 2,214 Changes in liabilities 12/31/2013 Provision Amortization 12/31/2014 Provision Amortization Transfer to assets held for sale 06/30/2015 Eletrobras 2,060 21,174 (2,060) 21,174 6,103 (5,718) (21,559) - CCEE 18, (2,091) 16,792 (9,015) - (5,849) 1,928 Total liabilities 20,606 21,511 (4,151) 37,966 (2,912) (5,718) (27,408) 1,928 Tota, net 20,606 15,212 (4,151) 31,667 (19,999) (5,718) (6,236) (286) 19. Provision for civil, tax and labor risks As of June 30, 2015, the individual and consolidated provision for civil, tax and labor risks amounted to R$88 (December 31, 2014, R$79). The change of R$9 basically refers to monetary correction of Company s contingencies. The Company s and its subsidiaries management, based on the opinion of their legal advisors with respect to the likelihood of favorable outcome from several claims, considers that the provisions recorded in the balance sheet are sufficient to cover probable losses. The Company and its subsidiaries are parties to several contingencies amounting to approximately R$12,371 (December 31, 2014, R$7,346), out of which civil claims in the amount of R$7,790 (December 31, 2014, R$3, 855), and labor claims in the amount of R$4,525 (December 31, 2014, R$3,491), which Management, based on 60

83 the opinion of its legal counsel, assessed as possible loss and did not record any provisions for the period ended June 30, The main lawsuits refer to pain and suffering and termination of lease and rental agreements. Power Grid Charges - National Energy Policy Council Resolution CNPE Resolution 3, of March 6, 2013, defined new criteria for apportionment of the additional commissioning cost of thermal power plants. According to the new criteria, the Power Grid Charges (ESS), for purposes of power security, which was fully apportioned amongst free consumers and distributors, would be apportioned amongst all members of the National Interconnected System (SIN), including generators and sellers. The Brazilian Association of Independent Power Producers (APINE), of which the Company is a member, obtained the preliminary injunction to suspend the effects of article 2 and 3 of CNPE Resolution 3, which exempted the generators from the ESS payment in accordance with such Resolution. The risk involved approximately R$1,420. Based on Management s understanding and on the legal counsel s opinion, this risk was classified as possible loss and did not recognize a provision for the period ended June 30, Provision for environmental costs Consolidated Note 06/30/ /31/2014 Current 11,130 6,686 Noncurrent 6,562 9,940 Transfer to liabilities directly related to assets held for sale 29.2 Current (4,654) - Noncurrent (1,606) - Total 11,432 16,626 Apresentados como: Current 6,476 6,686 Noncurrent 4,956 9,940 11,432 16,626 Considering that: (a) before the PCHs and the wind power plants are placed into service, the Company obtains all the environmental permits and, consequently, has a present obligation to comply with all the obligations set out in such permits to be able to operate; (b) such obligation arises from past events (power plant construction); and (c) it is expected that there will be cash outflows capable of generating future economic benefits, the Company provides for socio-environmental costs in current and noncurrent liabilities, and capitalizes such costs in fixed assets over the projects construction periods. After plant startup, such costs are recognized directly in profit or loss. 61

84 The provision is initially measured at fair value and, subsequently, adjusted to present value and upon change in the value or timeliness of the estimated cash flows, which are considered sufficient for the subsidiaries future disbursements during the phase of construction and the operation of wind farms in operation. 21. Equity and shareholders compensation a) Authorized capital As prescribed by article 8 of the Bylaws, the Company is authorized to increase its capital, as approved by the Board of Directors, regardless of any amendment to the bylaws, through the issuance of common or preferred shares, up to the limit of R$5,002,000. b) Capital On September 29, 2014, CEMIG GT subscribed and paid in 87,186,035 common shares issued by Renova, in the total amount of R$1,550,072, through the capitalization of an advance for future capital increase, in the amount of R$810,129, made on March 31, 2014 and through the assignment to Renova of the amount relating to the advance for future capital increase in Chipley on February 14, 2014, in the amount of R$739,943. The capital increase was authorized by the Company s Board of Directors on October 27, In addition to CEMIG GT, preemptive rights relating to 10,866 common shares were exercised by the Company s other shareholders, totaling 87,196,901 subscribed and paid-in common shares, in the total amount of R$1,550,265. On October 30, 2014, a capital increase was made through the stock option plan whereby eligible employees subscribed and paid in 50,165 common shares in the amount of R$18. A summary of the capital increases made in 2014, plus the R$17 paid during the first quarter, is shown in the table below: Date Number Common Preferred Total Value 09/29/ ,186,035-87,186,035 1,550,072 09/29/ ,866-10, /30/ , , , Total 87,247, ,330 87,347,396 1,550,283 On May 6, 2015, the Board of Directors approved the capital increase on the basis of the stock option plan. The eligible employees subscribed 39,169 common shares and 78,338 preferred shares, of which 33,669 common shares and 37,338 preferred shares were paid. The shares were effectively issued by the custodian bank in July As of June 30, 2015, the Company s subscribed and paid-in totaled R$2,568,006 (2014, R$2,567,997), distributed as follows: 62

85 RENOVA ENERGIA Common Preferred Total shares % of total capital Number % Number % Number % Controlling block 188,309, % - 0.0% 188,309, % RR Participações 50,561, % - 0.0% 50,561, % Light Energia 50,561, % - 0.0% 50,561, % Cemig GT 87,186, % - 0.0% 87,186, % Other shareholders 48,534, % 81,811, % 130,345, % RR Participações* 8,260, % 1,300, % 9,560, % BNDESPAR 9,311, % 18,622, % 27,934, % InfraBrasil 11,651, % 23,302, % 34,954, % FIP Caixa Ambiental 5,470, % 10,940, % 16,410, % Other 13,841, % 27,644, % 41,486, % Total 236,844, % 81,811, % 318,655, % * Shares not included in the controlling block Note: The controlling block considers shares subject to the Shareholders Agreement In the period 1,106 common shares were converted into preferred shares. c) Share issuance costs Parent 06/30/ /31/2014 Costs on issuance of shares (41,757) (41,757) The Company records all share issuance costs in a specific line item. These amounts refer to consulting and financial advisory fees relating to the capital increase operations, as shown below: Event Date Costs on issuance of shares Initial Pulic Offering (IPO) July ,686 New investor: Light Energia September ,555 New investor: BNDESPAR September ,871 New investor: CEMIG GT September ,645 Total 41,757 d) Reserves Capital reserve The Company recorded in the capital reserve the effect of costs on share-based payment relating to its plants under LER 2009, LER 2010 and LEN 2011 (A-3) and other projects, as well as the awards paid relating to the successful 63

86 IPO and also agreements entered into with its executive officers. These records both reflect the shares granted and the shares to be granted in the medium and short term. These accounting records are detailed in note e) Dividends Accumulated losses, if any, and provision for income tax and social contribution will be deducted from profit (loss) for the period before profit sharing. Net profit recorded will be allocated successively in the order below, as set forth in Chapter XVI of the Brazilian Corporate Law: (i) 5% will be directed, prior to any other allocation, to the legal reserve, which cannot exceed 20% of capital; (ii) a portion, as proposed by the management bodies and approved at the General Meeting, may be allocated to the provision for risks, as prescribed by article 195 of the Brazilian Corporate Law; (iii) a portion will be allocated to the payment of mandatory dividends to shareholders. The shareholders are entitled to receive as mandatory dividends, in each year, 25% on net profit for the year, less or plus the following: (i) amount allocated to legal reserve; and (ii) amount allocated to reserve for contingencies and reversal of this reserve from prior years. 22. Net revenue Consolidated Parent 06/30/ /30/ /30/ /30/ /30/ /30/2014 MWh* MWh* Power generation/supply Electric power supply - PCHs - Eletrobras 82, ,872 17,967 21, Wind power supply - CCEE 967, , ,514 99, Difference in generation - Eletrobras/CCEE agreement 95,918 (44,353) 19,999 (12,580) - - Total revenue 225, , (-) Deductions from revenue COFINS (6,649) (3,247) - - PIS (1,386) (704) - - Total deductions (8,035) (3,951) - - Other revenues Operations - solar and sale of electric power 5,834 6, (-) Deductions from revenue COFINS (574) (463) (14) (9) PIS (125) (101) (4) (2) 5,132 5, Total 1,145, , , , (*) Information not revised by independent auditors. 64

87 23. Costs and expenses Cost of services Consolidated 06/30/ /30/2014 Operating expenses Total Cost of services Operating expenses Total Tusd/Tust (1) 11,386-11,386 4,935-4,935 Inspection fee ,922-11,922 4,975-4,975 Personnel and management - 17,954 17,954-8,769 8,769 Outside services 19,662 24,910 44,572 4,321 17,075 21,396 Rentals and leases 2,468 1,328 3,796 2, ,047 Travels 184 3,941 4,125-1,516 1,516 Depreciation 52,902 1,300 54,202 34, ,595 Discontinued projects ,343 1,343 Insurance , ,174 Telephony and IT 117 1,632 1,749-1,141 1,141 Materials and consumables 1,741 1,064 2, Fine on reimbursement (2) (149) - - (4,645) - (4,645) Power for resale 5,161-5,161 3,393-3,393 Other 798 5,326 6, ,070 2,110 83,196 57, ,291 41,872 33,658 75,530 Total 95,118 57, ,213 46,847 33,658 80,505 (1) Tusd - distribution system use tariff and Tust - transmission system use tariff (2) As mentioned in note 1.2, the Company reversed the fine balance, for wind farms under LER 2010 having not being placed into operation and recorded this reversal in the same line item as that which triggered the operation cost. Cost of services Parent 06/30/ /31/2014 Operating expenses Total Cost of services Operating expenses Total Personnel and management - 17,954 17,954-8,769 8,769 Outside services - 16,277 16,277-9,135 9,135 Rentals and leases Travels - 3,564 3,564-1,462 1,462 Depreciation 2,297 1,290 3, ,560 Discontinued projects ,343 1,343 Insurance Telephony and IT - 1,470 1,470-1,081 1,081 Materials and consumables - 1,007 1, Other 299 2,083 2, ,196 1,236 Total 2,596 44,677 47, ,647 25,520 65

88 24. Finance income (costs) Consolidated Parent 06/30/ /30/ /30/ /30/2014 Finance income Income from short-term investments 18,270 25,982 4,024 16,460 Interest income - intragroup loans Discounts obtained Other finance income Total finance income 18,904 26,155 4,099 17,247 Finance costs Debt charges (101,752) (46,758) (29,031) (11,651) Interest (222) (315) (58) (28) Interest - intragroup loan (295) Tax on Financial Transactions (IOF) (1,506) (460) (356) (126) Banking fees (297) (57) (96) (23) Other finance costs (6,655) (2,220) (570) (254) Total finance costs (110,432) (49,810) (30,111) (12,377) Total finance income (costs) (91,528) (23,655) (26,012) 4,870 66

89 25. Income tax and social contribution Consolidated Parent 06/30/ /30/ /30/ /30/2014 (Loss) earnings before income tax and social contribution (42,932) 325 (56,408) (6,066) Combined income tax and social contribution rate 34% 34% 34% 34% Income tax and social contribution at statutory rates 14,597 (111) 19,179 2,062 Permanent deductions (additions) Nondeductible expenses (281) (810) (281) (810) Share of profit (loss) of subsidiaries (7,112) (2,112) 5,662 4,924 Effect on subsidiaries taxed under the deemed income 3,880 2, Effect of unrecognized deferred tax assets on: Temporary provisions (1,486) 1,124 (1,486) 1,124 Tax loss carryforwards (23,074) (7,300) (23,074) (7,300) Income tax and social contribution in profit or loss (13,476) (6,391) - - The Company did not record taxable income for the period. As of June 30, 2015, the Company had tax loss carryforwards to offset, for which deferred taxes were not recorded, in the following amounts: Parent 06/30/ /30/2014 Tax loss for the year (67,865) (21,470) Prior years' tax loss carryforwards (188,828) (125,723) Total tax loss carryforwards (256,693) (147,193) The consolidated tax refers to subsidiaries Espra (deemed income regime), 14 wind farms under operation (deemed income regime), subholdings Bahia Eólica and Salvador Eólica (actual income regime) and 15 plants under construction (actual income regime). Income tax and social contribution are calculated at the rate of 15%, plus a 10% surtax on taxable income exceeding R$240 for income tax and 9% on taxable income for social contribution, and take into consideration the offset of tax loss carryforwards, limited to 30% of taxable income. The income tax and social contribution under the deemed income regime are paid on gross revenues on a quarterly basis, based on the estimated percentage, according to the conditions and rates set forth in applicable legislation (estimated bases of 8% and 12% on sales, income tax and social contribution, respectively, plus other finance income). Deferred taxes on tax loss carryforwards were not recognized as future taxable income is not expected. 67

90 26. Related-party transactions Assets Finance income (costs) Effective term 06/30/ /31/ /30/ /30/2014 Start End Intragroup loans Espra 07/10/ /31/ (295) Salvador Eólica 05/27/ /31/2015 2,184 1, Bahia Eólica 10/17/ /31/ CE Itaparica 01/01/ /30/ Total 3,094 1, Redeemable shares Nova Renova (*) - 38, Advance for future capital increase Parent Chipley (**) - 14, ,094 55, (*) Redeemable shares issued by the subsidiary Nova Renova S.A. in accordance with its bylaws. (**) The advance for future capital increase agreement does not meet the criteria to characterize it as an investment. The main balances of assets and liabilities as of June 30, 2015, as well as the transactions that impact the profit or loss for the period, relating to the related-party transactions, resulted from the Company s transactions with its subsidiaries. Despite of the short-term maturities, the Company expects that these amounts will be performed in the long term Trade receivables Trade receivables loans entered into with the subsidiaries described in the table. These loans were performed to meet these companies cash needs. For the balances (receivable and payable), the amount payable is subject to TJPL rate, plus interest varying between 0.25% and 0.5% p.a. 68

91 26.2 Sales In August 2011, the Company entered into a power purchase and sale commitment with Light Energia, whereby Renova will deliver average MW(*) of wind power, corresponding to MW(*) of installed capacity; wind farms will begin to generate power between 2015 and Out of the total amount of MW(*), 1/3 of the power was traded with LIGHTCOM Comercializadora de Energia S.A. and 2/3 with CEMIG GT. In March 2014, Renova Comercializadora traded average MW with CEMIG GT, corresponding to MW of installed capacity. On June 17, 2014, a Share Purchase and Sale Commitment Investment Agreement was entered into among the Company and Companhia Energética de Minas Gerais ( CEMIG ), which will hold a 50% stake in the project. The wind farms that will satisfy this agreement will start to operate in Pursuant to the Investment Agreement, the transaction will be carried out upon the acquisition by CEMIG of 50% of the voting and total capital of a publicly-held company (SPE) to be established by the Company, in which all agreements relating to the Wind Project will be paid in. The acquisition price will correspond to up to R$113,450 relating to 50% of the amounts of advances relating to agreements already entered into by the Company, adjusted by the fluctuation of the interbank deposit rate ( CDI ) from effective disbursement by the Company up to the date of payment by CEMIG. After the acquisition, CEMIG and Renova will share the future investment of the Wind Project proportionally to their share in the SPE s capital. (*) Information not reviewed by independent auditors Compensation of key management personnel Compensation of key management personnel for the periods ended June 30, 2015 and 2014, as set forth in CVM Resolution 560, of December 11, 2008, amounted to R$7,516 and R$3,083, respectively, including short-term benefits only. Compensation of the Statutory Board paid by the Company in the period Statutory Board (*) 06/30/2015 Non-statutory Board (*) 06/30/2014 Total Statutory Board (*) Number of members Accrued fixed compensation 1,037 1,022 2,059 1,255 Salary or fees ,885 1,109 Direct and fringe benefits Compensation due to participation in committee n/a n/a n/a n/a Variable compensation 3,693 1,122 4, Bonus 3,693 1,122 4, Charges Post-employment benefits n/a n/a n/a n/a Total compensation by management body 4,976 2,540 7,516 3,083 69

92 Monthly average compensation of the Statutory Board Statutory Board (*) 06/30/2015 Non-statutory Board (*) 06/30/2014 Statutory Board Number of members Highest individual compensation amount Lowest individual compensation amount Average individual compensation amount Stock option plan The Company s Stock Option Plan, created under the terms of article 168, 3, of Law 6404/76, and approved at the Extraordinary General Meeting, held on January 18, 2010, sets forth the general grant conditions for the Company s stock options. The Plan s main purpose is to retain qualified professional and improves the expansion and performance of the Company s goals, aligned with its shareholders and management s interests. The Stock Option Plan ( Plan ) established that beneficiaries eligible under the Plan include the Company s directors, executive officers and employees, as well as individuals providing services to the Company or other companies under its control. The options are granted within the maximum limit of 5% of the total shares representing the Company s capital, on a diluted basis, including in the calculation all options already granted under the plan. Once the option is exercised, the shares subject to this option will be issued through the Company s capital increase, to be approved under the terms of applicable legislation and the Company s Bylaws. Plan 2011 Plan 2011 was designed to ensure the high performance of the wind projects, the grants and vesting are simultaneous and fully related to goals achieved in each project, subject to the percent of 3% of the project s net present value calculated on the following dates: 10% on the execution of the power sale agreement; 20% on the execution of the financing for project construction; 20% on the date the project is placed into operation; and 50% after one year of start-up of operations of the project. The options granted entitle beneficiaries to acquire shares at the price of R$0.34 per unit (corresponding to a one common and two preferred shares). The services provided by project paid through shares/units are as follows: 70

93 LER 2009 Number of units Unit value - R$ Total amount R$/thousand Grant and vesting date 10% upon execution of the power sale agreement 53, , % upon execution of the project construction financing agreement 106, , % on the date the project is placed into operation 127, , % one year after the project is placed into operation 344, , ,481 18,669 LER 2010 Total amount R$/thousand Grant and vesting date Number of units Unit value - R$ 10% upon execution of the power sale agreement 27, % upon execution of the project construction financing agreement 72, , % on the date the project is placed into operation 78, , % one year after the project is placed into operation 215, ,331 scheduled for ,077 11,517 LEN 2011 Total amount R$/thousand Grant and vesting date Number of units Unit value - R$ 10% upon execution of the power sale agreement 10, % upon execution of the project construction financing agreement 34, , % on the date the project is placed into operation 37, ,113 scheduled for % one year after the project is placed into operation 101, ,983 scheduled for ,913 5,432 In addition, the Company distributed the following shares in connection with the Initial Public Offering (IPO) and key management agreements: Parent Total amount R$/thousand Grant and vesting date Number of units Unit value - R$ Initial Public Offer (IPO) Success 360, , Initial Public Offer (IPO) Success 125, , Key executive agreement 48, , Key executive agreement 22, Key executive agreement 54, , ,941 16,658 For beneficiaries terminated during 2013, options were granted under the new projects (free trading market) as part of existing contractual conditions, as shown below: 71

94 The grant Number of Fair value Exercise Fair value date units granted of the grant price in the grant date 18/03/13 11, /09/13 47, ,185 20/12/13 4, Others 25 2,792 In 2013, the fair value of the grants was recorded in the reverse for employee s benefits in the amount of R$2,792. On June 26, 2013, the Company s Board of Directors resolved to suspend Plan 2011 and did not allow the admission of new participants and limited to the projects traded between December 2009 and June The eligible beneficiaries will continue to participate in the Plan until all goals of these projects are met. In 2014, for the goals of projects traded by the Company after November 2011, the amount of R$3,432, including charges, was paid via payroll. These amounts were recorded in property, plant and equipment in progress of the respective project. The other grants in 2014 refer to the share-based payment plan of former projects already recorded. Plan 2013 Also on June 26, 2013, another program was approved ( Plan 2013 ). The grants are exercisable in up to 6 years, with a vesting period of four years (25% per year) subsequently to the grant date. The share exercise price is determined by the average weighted by the volume of the 30 trading sessions prior to the reference date. The first grant was approved by the Company s Board of Directors on December 19, 2014, in the total volume of 444,520 shares, corresponding to 148,173 units. The exercise price of each option is R$38.42 per unit. As of June 30, 2015, the Company recorded the amount of R$654 directly in equity and profit (loss) for the period. 27. Financial instruments and risk management The Company and its subsidiaries conduct transactions with financial instruments. These financial instruments are managed through operating strategies and internal controls that aim at liquidity, profitability and security. Gains and losses on these transactions are consistent with the policies set by Company s management. The risks associated with these operations are managed according to the practices defined by Management, including the monitoring of the levels of exposure of each market risk and estimated future cash flow. These practices also determine that the information is updated in the operating systems, as well as the information and operation of the transactions with counterparties. a. Fair value of financial instruments Fair value is the amount for which an asset could be exchanged or a liability could be settled, between parties aware of and interested in the business, through a transaction without beneficiaries. The definition of fair value covers several variations on the metrics adopted to measure an amount at reliable value. 72

95 The calculation of the fair value was determined based on the available market information and methodologies adopted in the evaluation. However, significant judgment is necessary to understand the market information and estimate the fair value. Some line items have accounting balance equivalent to the fair value. This results from the fact that these financial instruments have characteristics similar to those that would be obtained had these financial instruments been traded in the market. The use of different market methodologies may have a material effect on the estimated realizable values. The transactions with financial instruments are recorded in the Company s balance sheet at their carrying amount, which is equivalent to their fair value in cash and cash equivalents, trade receivables, related parties, collaterals and restricted deposits and trade payables. The accounting balances of borrowings, financing and debt charges differ from fair value. Consolidated Fair value Carrying amount Financial assets 06/30/ /31/ /30/ /31/2014 Current assets Short-term investments 53, ,697 53, ,697 Trade receivables 41,473 68,627 41,473 68,627 Collaterals and restricted deposits 1, , Noncurrent assets Collaterals and restricted deposits 171, , , ,487 Financial liabilities Current liabilities Trade payables 290, , , ,200 Debentures 8, , Borrowings and financing 555, , , ,442 Noncurrent liabilities Debentures 658, , , ,315 Borrowings and financing 1,761,769 1,928,177 1,751,027 1,917,051 73

96 Parent Fair value Carrying amount Financial assets 06/30/ /31/ /30/ /31/2014 Current assets Short-term investments 4, ,831 4, ,831 Trade receivables Collaterals and restricted deposits Noncurrent assets Related parties 3,094 55,063 3,094 55,063 Financial liabilities Current liabilities Trade payables 11,532 10,989 11,532 10,989 Debentures 3, , Noncurrent liabilities Debentures 500, , , ,639 b. Categories of financial instruments The classification of financial instruments and their accounting balances are broken down below: Financial assets Current assets Loans and receivables Fair value through profit or loss O ther at amortized cost Total Loans and receivables Fair value through profit or loss O ther at amortized cost Short-term investments - 53,272-53, , ,697 Trade receivables 41, ,473 68, ,627 Collateral and restricted deposits 1, , Noncurrent assets Consolidated 06/30/ /31/2014 Collateral and restricted deposits 171, , , ,487 Total Financial liabilities Current liabilities Trade payables , , , ,200 Borrowings and financing , , , ,442 Debentures - - 7,576 7, Noncurrent liabilities Borrowings and financing - - 1,751,027 1,751, ,917,051 1,917,051 Debentures , , , ,315 74

97 Financial assets Current assets Loans and receivables Fair value through profit or loss O ther at amortized cost Total Loans and receivables Fair value through profit or loss O ther at amortized cost Short-term investments - 4,219-4, , ,831 Trade receivables Collateral and restricted deposits 1, , Noncurrent assets Related parties 3, ,094 55, ,063 Parent 06/30/ /31/2014 Total Financial liabilities Current liabilities Trade payables ,532 11, ,989 10,989 Debentures - - 2,554 2, Noncurrent liabilities Debentures , , , ,639 c. Fair value measurement The Company adopts the measurement at fair value of its financial assets and financial liabilities. Fair value is measured at market value based on the assumptions that the market players are able to measure an asset or liability. For purposes of consistency and comparison, the fair value hierarchy prioritizes the inputs adopted in the measurement of the three main levels, as follows: Level 1. Active market: Price - a financial instrument is considered as quoted in an active market if the quoted prices are immediately and regularly available in stock exchange or organized over-the-counter market, by operators, brokers or market association, by entities whose purpose is to disclose the prices by regulatory agencies, and if these prices represent market transactions regularly carried out between independent parties, without beneficiaries. Level 2. Without active market: Valuation method In relation to financial instruments not traded in an active market, the fair value must be determined based on the valuation/pricing methodology. Criteria used include current fair value of another financial instrument significantly similar, analysis of discounted cash flow and option pricing models. The purpose of the evaluation method is to determine the transaction price on the measurement date through a commercial exchange not subject to personal interests. Level 3. Without active market: Inputs for an asset or liability not based on observable market variations (nonobservable inputs) as at June 30, 2015 the Company did not have any financial instrument classified in this category. The instruments stated at fair value are broken down as follows: 75

98 Description Balance at 03/31/2015 Active market - quoted price (level 1) Fair value as of June 30, 2015 No active market - No active market - valuation technique nonobservable inputs (level 2) (level 3) Assets Short-term investments 53,272-53,272 - Description Balance at 12/31/2014 Active market - quoted price (level 1) Fair value as of December 31, 2014 No active market - No active market - valuation technique nonobservable inputs (level 2) (level 3) Assets Short-term investments 538, ,697 - Short-term investments: prepared taking into consideration the security market quotation or market information used in such calculation, based on future interest and exchange rates of similar instruments. The fair value of a security corresponds to its value at the maturity date, discounted to present value using a discount obtained using the market interest curve, in Brazilian reais. In the period ended June 30, 2015, there were no transfers between fair value measurements of level 1 and level 2 or between level 3 and level 2. d. Market risk The market risk reflects the possibility of monetary losses due to the changes in variables that impact the prices and rates traded in the market. These fluctuations basically impact all sectors and, therefore, represent financial risk factors. The Company s and its subsidiaries borrowings and financing, as described in Note 16, were entered into with BNB, BNDES and the Debentureholders. The contractual rules applicable to financial liabilities represent risks related to these exposures. As at June 30, 2015, the Company and its subsidiaries are exposed to market risk associated to the CDI, TJLP and fixed rates. e. Sensitivity analysis (consolidated) The Company and its subsidiaries present below the additional disclosures on their financial instruments required by CVM Instruction 475/08, specifically on the sensitivity analysis in addition to the sensitivity analysis required by IFRSs and accounting practices adopted in Brazil. The Company adopted the assumptions below, defined in CVM Instruction 475/08, to conduct this sensitivity analysis: definition of a probable scenario for risk behavior that, if materialized, can generate adverse results for the Company, and which is benchmarked by an independent external source (Scenario I); definition of two additional scenarios with stresses of at least 25% and 50% in the risk variable considered (Scenario II and Scenario III, respectively); and 76

99 presentation of the impact of the defined scenarios on the fair values of the financial instruments operated by the Company and its subsidiaries. Transaction as of June 30, 2015 Risk Scenario I - Probable scenario Scenario II - 25% decrease Scenario III - 50% decrease Rate effective at June 30, % 13.64% 13.64% Short-term investments: CDI decrease 53,272 53,272 53,272 Annual estimated CDI rate for % 8.75% 5.83% Annual effect on short-term investments: Loss (1,069) (2,642) (4,215) Transaction Risk Scenario I - Probable scenario Scenario II - 25% decrease Scenario III - 50% decrease Rate effective at June 30, % 13.64% 13.64% Borrowings: DEBENTURES - RENOVA CDI increase 503, , ,458 Annual estimated CDI rate for % 14.58% 17.49% Annual effect on borrowings: Gain (12,306) - - Loss - 5,811 23,928 Transaction Risk Scenario I - Probable scenario Scenario II - 25% decrease Scenario III - 50% decrease Rate effective at June 30, % 6.00% 6.00% Borrowings: BNDES - LP - LER 2009 TJLP increase 844, , ,325 BNDES - LP - Renova Eólica TJLP increase 942, , ,650 BNDES - CP - Diamantina Eólica TJLP increase 429, , ,912 Annual estimated TJLP rate for % 7.50% 9.00% Reduction Loss - 33,253 66,507 For short-term investments, the probable scenario considers SELIC future rates, used as the basis for calculation of the CDI rate, based on the Central Bank of Brazil s expectations, over a year, at 11.66%. Scenarios II and III consider a reduction of this rate by 25% (8.75% p.a.) and 50% (5.83% p.a.), respectively. These projections are also applicable to debentures and promissory notes subject to the CDI rate, considering scenarios II and III, based on an increase of 25% (14.58%) and 50% (17.49%), respectively. For borrowings and financing subject to the TJLP rate, the Company and its subsidiaries considered a probable scenario according to the rate for the third quarter of 2015 provided by BNDES, which rate is expected to be maintained over a year, at 6%. Scenarios II and III consider a reduction of this rate by 25% (7.50% p.a.) and 50% (9.00% p.a.), respectively. The weighted average spread in the short-term investments and loans is: (i) % of 77

100 CDI rate on short-term investments; (ii) 2.42% + TJLP on BNDES loans; and (iii) % of CDI rate on debentures. The effects (increase/decrease) included in this sensitivity analysis refer to interest rate changes considered in scenarios I, II and III based on the interest rate in effect as at June 30,2015. These sensitivity analyses have been prepared in accordance with CVM Instruction 475/2008, whose purpose is to measure the effects from the changes in market variables on each financial instrument of the Company and its subsidiaries. However, the actual settled amounts could differ from these estimates due to the subjectivity inherent in the process used in preparing the analyses. f. Liquidity risk The liquidity risk determines the parent s and subsidiary s ability to settle the obligations assumed. In order to determine the subsidiary s financial capacity to properly comply with the commitments assumed, the maturity flows of the funds raised and other obligations are included in the disclosure. For further information on the Company s borrowings, see note 16. The Company s management solely enters into with credit lines to leverage its operating capacity. This assumption is confirmed based on the characteristics of the Company s borrowings. f.1. Liquidity and interest rate risk tables The tables below detail the remaining contractual maturity of the Company s and its subsidiaries non-derivative financial liabilities and the contractual repayment periods. These tables were prepared using the undiscounted cash flows of the financial liabilities based on the nearest date on which the Company and its subsidiaries should settle the related obligations. The tables include interest and principal cash flows. As interest flows are based on floating rates, the undiscounted amount was based on the interest curves at period end. The contractual maturity is based on the most recent date on which Renova Group should settle its respective obligations. Consolidated Intruments at interest rate 1 to 3 months 3 months to 1 year 1 year to 5 years Over 5 years Total Fixed Borrowings and financing - principal and finance charge 24, , ,397 1,247,715 2,317,088 Debentures - principal and finance charge - 9, , , ,104 Total 24, , ,291 1,696,770 2,984,192 Parent Intruments at interest rate 1 to 3 months 3 months to 1 year 1 year to 5 years Over 5 years Total Fixed Debentures - principal and finance charge , , ,457 Total , , ,457 78

101 g. Credit risk The credit risk reflects the possibility that the Company may not exercise its rights. This description is directly related to line item Trade receivables. Financial assets Note 06/30/ /31/ /30/ /31/2014 Current In the power sector, the operations carried out are directed to the regulatory agency that maintains the active information on the positions of produced and consumed power. Based on structure, planning is made to operate the system without interferences or interruptions. Power is sold through auctions, agreements, among others. This system is reliable and controls the payments by the players in the market. The Company does not carry out transactions for speculative purposes. The Company manages its risks on a continuous basis, evaluating whether the practices adopted in the performance of its activities are aligned with Management s policies. The Company does not carry out transactions with financial instruments for equity hedge purposes as it believes that the risks to which its assets and liabilities are exposed can be compensated between each other over the normal course of its activities. These financial instruments are managed using operating strategies that seek to obtain liquidity, profitability, and security. The control policy consists of a permanent monitoring of contracted terms and conditions compared to market terms and conditions. As at June 30, 2015, the Company did not make speculative investments in derivatives or any other risk assets. h. Derivative transactions No transactions with derivative financial instruments were conducted in the periods reported. i. Capital management Consolidated Carrying amount Trade receivables 8 41,473 68, Consolidated 06/30/ /31/2014 Borrowings and financing debt 2,962,125 2,845,692 (-) Cash and cash equivalents and short-term investments 97, ,617 Net debt 2,864,749 2,250,075 Equity 2,453,896 2,509,641 Financial leverage ratio - % 117% 90% Parent The objectives of the Company in managing its capital are to ensure that the Company is always capable of providing return to its shareholders and benefits to other stakeholders, and maintain an ideal capital structure to reduce this cost. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to stockholders, return capital to stockholders or, also, issue new shares or sell assets to reduce, for example, indebtedness. 79

102 j. Risk of shortage of wind This risk results from the shortage of wind due to natural factors, which is reduced because the wind deposits in Brazil are one of the best in the world, as in addition to high speed, wind is considered stable, different from certain regions in Asia and the United States, which are subject to cyclones, typhoons and other natural factors. k. Risk of shortage of water Indirect subsidiary Energética Serra da Prata S.A. and the jointly controlled entity Brasil PCH generate power through small hydroelectric plants (PCHs). A long period of shortage of rain, during the humid season, will reduce the water volume of the plants reservoirs. An extreme condition would imply decrease in revenues. The occurrence of unfavorable hydrologic conditions, and the obligation to deliver the contracted energy, may result in the Company s exposure to the long-term energy market, which would affect its future financial results. However, except for one PCH, 100% of the hydroelectric generation capacity of the other PCHs is part of the Power Relocation Mechanism ( MRE ), which mitigates part of the hydrologic risk, through the allocation between all plants linked to the MRE. 28. Earnings per share Basic earnings (loss) per share are calculated by dividing profit (loss) for the period attributable to the holders of common and preferred shares of the Parent by the weighted average number of common and preferred shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing profit (loss) for the year attributable to the holders of the Parent s common and preferred shares by the weighted average number of common and preferred shares available during the year, plus the weighted average number of common shares issued on the assumption of exercise of stock options with strike price lower than fair value. According to the Company s bylaws, preferred shares are entitled to the same conditions of the common shares in profit sharing. The table below shows the data and number of shares used to calculate basic and diluted earnings (loss) per share for the periods indicated in the statement of operations. 80

103 Parent 06/30/ /30/2014 Loss for the year (56,408) (6,066) (Loss) basic earnings per share: Weighted average of outstanding common shares (in thousands) 318, ,308 (Loss) basic earnings per share (in R$) (0.177) (0.026) Diluted earnings per share: Weighted average of outstanding common shares (in thousands) 318, ,308 Dilutive effect of stock options (in thousands) Total shares applicable to dilution (in thousands) 319, ,308 Loss diluted earnings per share (in R$) (0.177) (0.026) 29. Assets classified as held for sale 29.1 Parent Changes in Parent s investments: Assets 06/30/2015 Bahia Eólica Participações S.A. 206,555 Salvador Eólica Participações S.A. 339,177 Energética Serra da Prata S.A. 109,453 Total assets classified as held for sale 655,185 81

104 29.2 Consolidated Balance sheets as of June 30, /30/2015 ASSETS Bahia Salvador Espra Combined CURRENTS Cash and cash equivalents 7,690 10,751 5,121 23,562 Short-term investments ,436 35,644 Trade receivables 6,002 11,729 5,544 23,275 Accounts receivable - CCEE - 1,294-1,294 Recoverable taxes 647 1, ,396 Prepaid expenses Advances to suppliers ,317 Other receivables Total current assets 15,178 27,179 45,499 87,856 NONCURRENTS Accounts receivable - CCEE 31 19,847-19,878 Collaterals and restricted deposits 49, ,380 13, ,926 Deferred taxes ,882 2,043 Other receivables Property, plant and equipment 425, , ,321 1,364,165 Total noncurrent assets 475, , ,920 1,558,047 TOTAL ASSETS 490, , ,419 1,645,903 82

105 06/30/2015 EQUITY AND LIABILITIES Bahia Salvador Espra Combinado CURRENTS Trade payables 3,648 6,261 1,931 11,840 Borrowings and financing 21,044 43,276 5,735 70,055 Taxes payable 1,809 4, ,267 Accounts payable - CCEE/Eletrobras ,559 21,559 Provision for social and environmental costs 1,399 3,255-4,654 Dividends payable ,313 4,769 Other payables Total current liabilities 27,902 57,329 33, ,153 NONCURRENTS Borrowings and financing 251, ,569 88, ,517 Deferred taxes 77 1,422-1,499 Accounts payable - CCEE/Eletrobras 2,740 3,109-5,849 Provision for social and environmental costs 483 1,123-1,606 Related parties 910 2,184-3,094 Total noncurrent liabilities 256, ,407 88, ,565 EQUITY 206, , , ,185 TOTAL LIABILITIES AND EQUITY 490, , ,419 1,645,903 Classified as: Assets classified as held for sale 1,645,903 Liabilities directly related to assets held for sale 982,855 83

106 Income and cash flow statements as of June 30, /30/2015 Bahia Salvador Espra Combined Profit of assets classified as held for sale Revenue 40,479 88,767 11, ,998 Costs and expenses (28,883) (55,538) (7,540) (91,961) Profit before taxes 11,596 33,229 4,212 49,037 Income tax and social contribution (2,177) (4,705) (1,229) (8,111) Profit of period 9,419 28,524 2,983 40,926 Cash flow of assets classified as held for sale Net cash of operating activities 12,046 15,986 3,494 31,526 Net cash provided of investing activities (967) 1,522 (10,015) (9,460) Net cash of financing activities (10,252) (19,502) (2,859) (32,613) (Redução) aumento no saldo de caixa e equivalentes de caixa 827 (1,994) (9,380) (10,547) Cash and cash equivalents at beginning of period 6,863 12,745 14,501 34,109 Cash and cash equivalents at end of period 7,690 10,751 5,121 23,562 (Decrease) Inrease in Cash and Cash Equivalents 827 (1,994) (9,380) (10,547) On May 8, 2015 the Board of Directors approved the conclusion of an agreement of contribution of securities between Renova, the SE Emerging Markets Yield, Inc. ("Global terraform") and SunEdison Inc. ("SunEdison" ) through which the Company agrees to contribute the operating assets related to the projects of Espra (three small hydropower plants), Salvador wind (nine wind farms sold in LER 2009) and Bahia wind (5 wind farms sold in LER 2009) to R$1,613,000 subject to adjustments contemplated in the agreement. The consummation of the agreement is subject to a number of conditions precedent, including the completion of the TerraForm Global IPO, obtaining third-party consent and regulatory approvals, including CADE, ANEEL and Eletrobrás. 30. Insurance coverage The Company and its subsidiaries contracted insurance for certain property, plant and equipment items, civil liability and other contractual guarantees. As at June 30, 2015, current policies are summarized as follows: Risks of generation, construction and transmission: 84

107 Operation Insured item Coverage Effective term Start End Insured Civil liability LER 2009 R$ 10,000 06/28/ /10/2015 Renova Energia Operating risks (LER 2009) R$ 1,287,348 07/11/ /11/2015 Renova Energia Surety - Contractual obligations R$ /08/ /08/2015 COELBA Operating risks R$ 233,591 09/25/ /25/2015 ESPRA Civil liability R$ 233,591 09/25/ /25/2015 ESPRA Operating risks (LER 2010) R$ 872,116 10/10/ /10/2015 Renova Energia Civil liability LER 2010 R$ 671,452 10/10/ /10/2015 Renova Energia Construction Insured item Coverage Effective term Start End Insured Performance bond for implementation of LEN 2011 R$ 41,193 12/05/ /21/2015 ANEEL Transportation / Delay Start Up (Project LER 2010 / LEN 2011) R$ 801,500 11/30/ /01/2015 Renova Energia Performance Bond (LEN 2012) R$ 3,144 04/02/ /01/2017 ANEEL Performance Bond (LER 2013) R$ 31,750 12/05/ /01/2015 ANEEL Performance Bond (A ) R$ 64,715 04/28/ /01/2018 ANEEL Performance Bond (ACL) R$ 40,140 09/19/ /01/2015 ANEEL Performance Bond (ACL) R$ 40,560 09/19/ /01/2016 ANEEL Performance Bond (ACL) R$ 19,520 09/19/ /31/2017 ANEEL Performance Bond (ACL) R$ 4,320 09/19/ /31/2016 ANEEL Performance Bond (ACL) R$ 6,480 09/19/ /10/2015 ANEEL Civil liability (ACL) R$ 2,229,363 12/01/ /01/2017 Renova Energia Civil liability (LEN 2012 (A-5)) R$ 77,645 12/01/ /01/2017 Renova Energia Civil liability/ Transportation/Enginnering Risk (LER 2013) R$ 654,103 12/01/ /01/2017 Renova Energia Cosntruction Bond (A ) R$ 20,633 04/01/ /01/2019 ANEEL Cosntruction Bond (A ) R$ 20,633 04/01/ /01/2019 ANEEL Performance bond for implementation (LER 2014) R$ 33,903 03/04/ /01/2018 ANEEL Engineering risks /Transportation (LEN 2012) R$ 77,645 12/01/ /01/2017 Renova Energia Engineering risks (ACL) R$ 112,615 11/14/ /01/2017 Renova Energia Engineering risks/ Transportation (ACL) R$ 417,050 12/01/ /01/2017 Renova Energia Engineering risks/ Transportation (ACL) R$ 825,864 12/01/ /01/2017 Renova Energia Engineering risks/ Transportation (ACL) R$ 834,099 12/01/ /01/2017 Renova Energia Engineering risks/ Transportation (ACL) R$ 132,350 12/01/ /01/2017 Renova Energia Administration and Portfolio Insured item Coverage Effective term Start End Insured Civil liability D&O R$ 30,000 01/31/ /31/2016 Renova Energia Civil liability - Initial Public Offering POSI R$ 25,000 07/07/ /07/2015 Renova Energia Rd Equipment (Wind measurer - Lidar) R$ /12/ /12/2015 LIDAR 85

108 31. Commitments The Company and its subsidiaries have contractual obligations and commitments assumed in connection with the construction and maintenance of their wind farms, including purchases of machinery and equipment, in the amount of R$4,303,569, civil construction, in the amount of R$438,507 and acquisition of projects, in the amount of R$93, Non-cash transactions As of June 30, 2015, the Company conducted the following noncash transactions; therefore, these transactions are not reflected in the statement of cash flows: Consolidated Parent Note 06/30/ /30/ /30/ /30/2014 Finance charges capitalized 14.2, ,021 55,578 7,517 9,209 Finance income capitalized 14.2 (3,915) (5,787) - - Payment of capital in subsidiaries through property, plant and equipment ,611 Acquisition of property, plant and equipment - Trade payables 14.2 (267,297) (165,211) - - Proposed dividends of parents ,022 15,427 Payment of borrowings and promissory notes through a new financing 16-1,000, Payment of interest on borrowings through a new financing 16-47, Subsequent events 33.1 Sale of assets On July 15, 2015, the Company entered into definitive agreements with TerraForm Global, Inc., ("TerraForm Global"), TerraForm Global, LLC and SunEdison, Inc. ("SunEdison") divided into two phases: The first phase of the operation, announced on May 7, 2015, included the signing of the following agreements: (i) The contract of purchase and sale of shares for the sale of the assets of Espra project for R$136,000, through payment in cash; (ii) purchase agreement and sale of shares for the sale of the assets of the Bahia project, the value (equity value) of R$451,000, through payment in cash; and (iii) the stock exchange contract for the exchange of the shares of the Company's subsidiaries which hold the assets of Salvador project, for R$1,026,000, by TerraForm Global shares based on the price per share to be paid in the tender offer (IPO) of TerraForm Global in progress. The above amounts are subject to adjustments included in their contracts. The second phase of the operation, approved and celebrated on July 15, 2015, includes other assets that have longterm power sales contracts, operational and non-operational ("Backlog") and projects under development and to be developed by the Company that may sell power under long-term contracts (Pipeline), and included the signing of the following agreements: 86

109 (i) The contract of exchange of shares for the exchange of the shares of the Company's subsidiaries which hold the assets of each Backlog the project, as listed below, for the total value of the company (enterprise value, which considers the debt in the value of assets) of R$13.4 billion. The values will be adjusted on the exchange date as the applicable contractual provisions. The assets, with MW of installed capacity, will be exchanged after their respective entries into commercial operation and according to the schedule below negotiated by the parties and Renova will receive the corresponding value in TerraForm Global shares based on the average of the last 30 quotations trading days prior to closing. Asset Installed Year exchange capacity (MW) Light I Light II LEN A LER LEN A LER wind LER solar LER PPA Cemig LEN A LEN A (ii) option contract through which the TerraForm Global will have until December 31, 2016, a call option and preference in the acquisition of renewable energy projects under development and to be developed by the Company that may sell energy contracts long term. The amount of TerraForm Global shares to be received by Renova will be determined based on a multiple of cash available for distribution of their project in the years following transfer, according to the methodology agreed by the parties. After this period, the parties will negotiate new mechanics of the purchase option and first refusal to acquire the projects, aiming to reflect market conditions and the Company's competitiveness Entry of SunEdison in the Company's Controlling Block On July 15, 2015, the contract of purchase and sale of shares for the sale of the Company's shares held by Light Energia S.A. for SunEdison was concluded. The closing of this transaction is still subject to conditions precedent, among which: regulatory approvals and manifestation as the transfer restrictions of shares and rights of first refusal and tag-along, provided for in the existing shareholder agreements. Upon closing of this transaction, SunEdison will adhere to existing shareholders agreements of the Company and will be part of the Renova controlling block, as follows: 87

110 RENOVA ENERGIA Common Preferred Total shares % of total capital Number % Number % Number % Controlling block ,6% - 0,0% ,1% RR Participações ,4% - 0,0% ,9% SunEdison ,4% - 0,0% ,9% Cemig GT ,8% - 0,0% ,3% Other shareholders ,4% ,0% ,9% RR Participações* ,5% ,6% ,0% BNDESPAR ,9% ,8% ,8% InfraBrasil ,9% ,5% ,0% FIP Caixa Ambiental ,3% ,4% ,1% Other ,8% ,7% ,0% Total ,0% ,0% ,0% * * * Carlos Mathias Aloysius Becker Neto Chief Executive Officer Ricardo de Lima Assaf Vice-President for Legal Affairs, Regulation and Institutional Relations Officer Pedro V.B. Pileggi Vice-President for Finance, Business Development and Investors Relations Officer Ney Maron de Freitas Vice-President for Environment and Sustainability Reinaldo Cardoso da Silveira Accountant CRC /0-S- SP 88

111 (Convenience Translation into English from the Original Previously Issued in Portuguese) Renova Energia S.A. and Subsidiares Individual and Consolidated Interim Financial Information for the Quarter Ended June 30, 2015 and Report on Review of Interim Financial Information Deloitte Touche Tohmatsu Auditores Independentes

112 Deloitte Touche Tohmatsu Auditores Independentes Avenida Tancredo Neves 450 Edf. Suarez Trade 29º andar Salvador - BA Tel: + 55 (71) Fax:+ 55 (71) (Convenience Translation into English from the Original Previously Issued in Portuguese) REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION To the Shareholders, Directors and Management of Renova Energia S.A. São Paulo - SP Introduction We have reviewed the accompanying individual and consolidated interim financial information of Renova Energia S.A. ( Company ), identified as Parent and Consolidated, respectively, included in the Interim Financial Information Form (ITR), for the quarter ended June 30, 2015 and which comprise the balance sheet as of June 30, 2015, and the related income statement and the statement of comprehensive income for the three-month and for the six-month then ended, and statement of changes in equity and statement of cash flows for the six-month then ended, including a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of the individual and consolidated interim financial information in accordance with technical pronouncement CPC 21 (R1) Interim Financial Reporting and IAS 34 Interim Financial Reporting, issued by the International Accounting Standard Board - IASB, as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of Interim Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of Review We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR 2410 and ISRE Review of Interim Financial Information Performed by the Auditor of the Entity). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial matters and accounting, and applying analytical and other review procedures. The scope of a review is substantially less than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Therefore, we do not express an audit opinion. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms.

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