1Q14 Quarterly Information (ITR)

Eneva S.A.(Publicly-held company)Quarterly Information - ITRat March 31, 2014and report on reviewof quarterly information

PricewaterhouseCoopers, Av. José Silva de Azevedo Neto 200, 1º e 2º, Torre Evolution IV, Barra da Tijuca, Rio de Janeiro, RJ, Brasil 22775-056T: (21) 3232-6112, F: (21) 3232-6113, www.pwc.com/br

PricewaterhouseCoopers, Rua da Candelária 65, 20º, Rio de Janeiro, RJ, Brasil 20091-020, Caixa Postal 949,T: (21) 3232-6112, F: (21) 2516-6319, www.pwc.com/br

2

(A free translation of the original in Portuguese)

Report on review of quarterly information

To the Board of Directors and ShareholdersEneva S.A.

Introduction

We have reviewed the accompanying parent company and consolidated interim accountinginformation of Eneva S.A. (the "Company"), included in the Quarterly Information Form (ITR) for thequarter ended March 31, 2014, comprising the balance sheet as at that date and the statements ofoperations, comprehensive loss, changes in equity and cash flows for the quarter then ended, and asummary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of the parent company interim accounting informationin accordance with the accounting standard CPC 21, Interim Financial Reporting, of the BrazilianAccounting Pronouncements Committee (CPC), and of the consolidated interim accountinginformation in accordance with CPC 21 and International Accounting Standard (IAS) 34 - InterimFinancial Reporting issued by the International Accounting Standards Board (IASB), as well as thepresentation of this information in accordance with the standards issued by the Brazilian SecuritiesCommission (CVM), applicable to the preparation of the Quarterly Information (ITR). Ourresponsibility is to express a conclusion on this interim accounting information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Reviews ofInterim Financial Information (NBC TR 2410 - Review of Interim Financial Information Performed bythe Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity, respectively). A review of interim informationconsists of making inquiries, primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures. A review is substantially less in scope than anaudit conducted in accordance with Brazilian and International Standards on Auditing andconsequently does not enable us to obtain assurance that we would become aware of all significantmatters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Eneva S.A.

3

Conclusion on the parent companyinterim information

Based on our review, nothing has come to our attention that causes us to believe that theaccompanying parent company interim accounting information included in the quarterly informationreferred to above has not been prepared, in all material respects, in accordance with CPC 21 applicableto the preparation of the Quarterly Information, and presented in accordance with the standardsissued by the CVM.

Conclusion on the consolidatedinterim information

Based on our review, nothing has come to our attention that causes us to believe that theaccompanying consolidated interim accounting information included in the quarterly informationreferred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS34 applicable to the preparation of the Quarterly Information, and presented in accordance with thestandards issued by the CVM.

Emphasis of matter

Continuity of the Company's operations

We draw attention to Note 1 to this quarterly information, which states that the Company recorded, atMarch 31, 2014, an accumulated deficit of R$ 2.447.591 thousand and presented an excess of currentliabilities over current assets in the parent company and consolidated quarterly information ofR$ 1.577.095 thousand and R$ 2.413.269 thousand, respectively. This, along with other matters asdescribed in Note 1, indicates the existence of a material uncertainty which may raise significant doubtabout the ability of Eneva S.A. to continue as a going concern, which will depend on the success of itscurrent plans that include capital increase , sale of assets and renegotiations to reschedule thematurities of loans from third parties as described in subsequent events in Note 29. No adjustmentsarising from these uncertainties were included in the interim accounting information. Our conclusionis not qualified in respect of this matter.

Audit and review of prior-year information

The Quarterly Information Form (ITR) mentioned in the first paragraph includes accountinginformation related to the statement of operations, changes in equity, cash flows and value added forthe quarter ended March 31, 2013, obtained from the ITR as at that date, presented for comparisonpurposes. The review of the Quarterly Information (ITR) for the quarter ended March 31, 2013 wasconducted by other independent auditors, who issued an unqualified review report dated May 8, 2013that included the same emphasis of matter of the aforementioned paragraph.

Eneva S.A.

4

Other matters

Statements of value added

We have also reviewed the parent company and consolidated statements of value added for the quarterended March 31, 2014. These statements are the responsibility of the Company's management, and arerequired to be presented in accordance with standards issued by the CVM applicable to thepreparation of Quarterly Information (ITR) and are considered supplementary information underIFRS, which do not require the presentation of the statement of value added. These statements havebeen submitted to the same review procedures described above and, based on our review, nothing hascome to our attention that causes us to believe that they have not been prepared, in all materialrespects, in a manner consistent with the parent company and consolidated interim accountinginformation taken as a whole.

Rio de Janeiro, May 13, 2014

PricewaterhouseCoopersAuditores IndependentesCRC 2SP000160/O-5 "F" RJ

Guilherme Naves ValleContador CRC 1MG070614/O-5 "S" RJ

Eneva S.A.

Quarterly Information - ITR

Balance Sheet - Assets

1

(Thousands of Reais)

Account Code Account Description

Current Quarter

3/31/2014

Previous Year

12/31/2013

1 Total Assets 4.600.013 4.751.985

1.01 Current Assets 49.301 141.241

1.01.01 Cash and Cash Equivalents 19.694 110.156

1.01.01.01 Cash and Bank deposits 312 509

1.01.01.02 Fundo Multimercado MPX 63 19.382 109.647

1.01.01.04 CDB - -

1.01.01.05 Other Fixed-Income Investments - -

1.01.02 Short-term Investments - -

1.01.02.01 Short-term investments valued at Fair Value - -

1.01.02.01.01 Marketable Securities - -

1.01.02.01.02 Available-for-sale securities - -

1.01.02.02 Short-term investments valued at amortized cost - -

1.01.02.02.01 Securities Held to Maturity - -

1.01.03 Accounts Receivable - -

1.01.03.01 Trade accounts receivable - -

1.01.03.02 Other Accounts Receivable - -

1.01.04 Inventories - -

1.01.05 Agricultural Assets - -

1.01.06 Recoverable Taxes 28.248 25.701

1.01.06.01 Current Taxes Recoverable 28.248 25.701

1.01.07 Prepaid Expenses - -

1.01.08 Other Current Assets 1.359 5.384

1.01.08.01 Noncurrent Assets for Sale - -

1.01.08.02 Assets of Discontinued Operations - -

1.01.08.03 Other 1.359 5.384

1.01.08.03.01 Other Advances 1.320 1.175

1.01.08.03.02 Dividends Receivable - -

1.01.08.03.03 Gain on derivatives - 4.171

1.01.08.03.04 Escrow Deposits 39 38

1.01.08.03.06 Other Accounts Receivable - -

1.02 Noncurrent Assets 4.550.712 4.610.744

1.02.01 Long-Term Assets 1.276.933 1.464.405






1.02.01.03 Accounts Receivable - -

1.02.01.03.01 Trade accounts receivable - -


1.02.01.04 Inventories - -

1.02.01.05 Agricultural Assets - -

1.02.01.06 Deferred Taxes - -

1.02.01.06.01 Deferred Income and Social Contribution Taxes - -

1.02.01.07 Prepaid Expenses - -

1.02.01.08 Related-party Credits - -

1.02.01.08.01 Credits with Associated Companies - -

1.02.01.08.02 Credit with Subsidiaries - -

1.02.01.08.03 Credits with Controlling Shareholders - -

1.02.01.08.04 Other Related-party Credits - -

1.02.01.09 Other Noncurrent Assets 1.276.933 1.464.405

1.02.01.09.01 Noncurrent Assets for Sale - -

1.02.01.09.02 Assets of Discontinued Operations - -

1.02.01.09.03 Gain on Derivatives - -

1.02.01.09.04 Escrow Deposits - -

1.02.01.09.07 Recoverable Taxes 7.243 7.215

1.02.01.09.08 Accounts receivable from other related parties 12.542 217.337

1.02.01.09.09 AFAC at Subsidiaries and Joint Ventures 136.295 206.678

1.02.01.09.10 Prepaid expense 841 841

1.02.01.09.11 Loan at Subsidiaries and Joint Ventures 979.289 909.327

1.02.01.09.12 Accounts receivable from Subsidiaries and Joint Ventures 127.513 123.005

1.02.01.09.13 Embedded derivatives 13.207 -

1.02.01.09.14 Other Accounts Receivable 3 2

1.02.02 Investments 3.258.396 3.130.978

1.02.02.01 Equity Interests 3.258.396 3.130.978

1.02.02.01.01 Interests in Associated Companies 79.760 51.899

1.02.02.01.02 Interests in Subsidiaries 2.293.306 2.181.366

1.02.02.01.03 Interests in Joint Ventures 823.235 835.618

1.02.02.01.04 Other Equity Interests 62.095 62.095

1.02.02.02 Property for Investment - -

1.02.03 Property, plant and equipment 12.773 12.634

1.02.03.01 Property, plant and equipment in operation - -

1.02.03.02 Leased property, plant and equipment - -

1.02.03.03 Property, plant and equipment in progress - -

1.02.04 Intangible assets 2.610 2.727

1.02.04.01 Intangible assets - -

1.02.04.01.01 Concession Agreement - -

1.02.05 Deferred charges - -

Eneva S.A.


Balance Sheet - Liabilities

2



Current Quarter

3/31/2014

Previous Year

12/31/2013

2 Total Liabilities 4.600.013 4.751.985

2.01 Current Liabilities 1.626.396 1.580.010

2.01.01 Social and labor obligations 9.006 8.424

2.01.01.01 Payroll Obligations - -

2.01.01.02 Labor Obligations 9.006 8.424

2.01.02 Trade payables 5.312 3.473

2.01.02.01 Domestic Trade Payables 5.312 3.473

2.01.02.02 Foreign Trade payables - -

2.01.03 Tax Obligations 575 709

2.01.03.01 Federal Tax Liabilities 575 709

2.01.03.01.01 Income taxes and contributions payable 575 709

2.01.03.02 State Tax Liabilities - -

2.01.03.03 Municipal Tax Liabilities - -

2.01.04 Loans and Financing 1.606.422 1.562.323

2.01.04.01 Loans and Financing 1.606.253 1.562.211

2.01.04.01.01 In local currency 1.606.253 1.562.211

2.01.04.01.02 Foreign currency - -

2.01.04.02 Debentures 169 112

2.01.04.02.01 Principal - -

2.01.04.02.02 Interest 169 112

2.01.04.03 Financing through Financial Lease - -

2.01.05 Other liabilities 5.081 5.081

2.01.05.01 Related-Party Transactions - -

2.01.05.01.01 Debits with Associated Companies - -

2.01.05.01.02 Debts with Subsidiaries - -

2.01.05.01.03 Debits with Parent Companies - -

2.01.05.01.04 Debts with Other Related Parties - -

2.01.05.02 Other 5.081 5.081

2.01.05.02.01 Dividends and Interest on Shareholder's Equity Payable - -

2.01.05.02.02 Minimum Mandatory Dividend Payable - -

2.01.05.02.03 Expenses on Share Based Payments - -

2.01.05.02.04 Losses on Derivative Transactions - -

2.01.05.02.07 Profit Sharing 4.990 4.990

2.01.05.02.09 Other liabilities 91 91

2.01.06 Provisions - -

2.01.06.01 Tax, Welfare and Civil Contingencies - -

2.01.06.01.01 Tax Provisions - -

2.01.06.01.02 Social Security and Labor Provisions - -

2.01.06.01.03 Provisions for Employee Benefits - -

2.01.06.01.04 Civil Provisions - -

2.01.06.02 Other Provisions - -

2.01.06.02.01 Provisions for Guarantees - -

2.01.06.02.02 Provision for Reorganization - -

2.01.06.02.03 Provisions for environmental and deactivation liabilities - -

2.01.07 Liabilities on Noncurrent Assets for Sale and Discontinued Assets - -

2.01.07.01 Liabilities on Noncurrent Assets for Sale - -

2.01.07.02 Liabilities on Assets of Discontinued Operations - -

2.02 Noncurrent Liabilities 572.132 703.232

2.02.01 Loans and Financing 527.588 660.656

2.02.01.01 Loans and Financing 522.232 655.417

2.02.01.01.01 In local currency 522.232 655.417


2.02.01.02 Debentures 5.356 5.239

2.02.01.02.01 Principal 4.605 4.605

2.02.01.02.02 Interest 751 634

2.02.01.02.03 Embedded Derivatives - -



2.02.02.01 Related-Party Transactions 36.700 34.489


2.02.02.01.02 Debts with Subsidiaries - -


2.02.02.01.04 Debts with Other Related Parties 36.700 34.489

2.02.02.02 Other - -


2.02.02.02.02 Advance for Future Capital Increase - -

2.02.02.02.03 Losses on derivative transactions - -

2.02.02.02.04 Devaluation of investments - -

2.02.02.02.05 Unsecured Liability - -

2.02.03 Deferred Taxes - -

2.02.03.01 Deferred Income and Social Contribution Taxes - -

Eneva S.A.


Balance Sheet – Liabilities (continued)

3



Current Quarter

3/31/2014

Previous Year

12/31/2013

2.02.04 Provisions 7.844 8.087






2.02.04.02 Other Provisions 7.844 8.087




2.02.04.02.05 Negative Equity 7.844 8.087




2.02.06 Unappropriated Profits and Revenue - -

2.02.06.01 Unappropriated Profits - -

2.02.06.02 Unappropriated Revenue - -

2.02.06.03 Unappropriated Investment Subsidies - -

2.03 Shareholders’ Equity 2.401.485 2.468.743

2.03.01 Realized Capital 4.532.315 4.532.313

2.03.02 Capital Reserves 354.025 350.514

2.03.02.01 Goodwill on Share Issuance - -

2.03.02.02 Special Goodwill Reserve under Merger - -

2.03.02.03 Sale of Subscription Bonus - -

2.03.02.04 Options Awarded 354.025 350.514

2.03.02.05 Treasury Stock - -

2.03.02.06 Advance for Future Capital Increase - -

2.03.03 Revaluation Reserves - -

2.03.04 Profit Reserves - -

2.03.04.01 Legal Reserve - -

2.03.04.02 Statutory Reserve - -

2.03.04.03 Reserve for Contingencies - -

2.03.04.04 Unrealized Profit Reserve - -

2.03.04.05 Profit Retention Reserve - -

2.03.04.06 Special Reserve for Undistributed Dividends - -

2.03.04.07 Tax Incentive Reserve - -

2.03.04.08 Additional Dividend Proposed - -


2.03.05 Retained Earnings/Accumulated Losses (2.432.731) (2.360.800)

2.03.06 Equity Appraisal Adjustments (52.124) (53.284)

2.03.07 Accumulated Translation Adjustments - -

2.03.08 Other Comprehensive Income - -

Eneva S.A.


Statement of Income

4



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

3.01 Revenue from goods sold and services rendered - -

3.02 Cost of goods and/or services sold - -

3.03 Gross Profit - -

3.04 Operating Income/Expenses (41.589) (220.392)

3.04.01 Sales Expenses - -

3.04.02 General and Administrative Expenses (28.324) (23.710)

3.04.02.01 Personnel and Management (13.287) (11.121)

3.04.02.02 Outsourced Services (11.925) (9.796)

3.04.02.03 Depreciation and Amortization (525) (453)

3.04.02.04 Leasing and Rentals (1.348) (1.080)

3.04.02.05 Other Expenses (1.239) (1.260)

3.04.03 Impairment of assets - -

3.04.04 Other Operating Income 21.870 14

3.04.04.01 Sale of PGN (OGX Maranhão) 21.858 -

3.04.04.02 Other 12 14

3.04.05 Other Operating Expenses (129) (1.040)

3.04.05.01 Unsecured Liability 36 (1.040)

3.04.05.02 Provision for investment losses (165) 3

3.04.05.03 Losses on the sale of assets - (3)

3.04.06 Equity in Net Income of Subsidiaries (35.006) (195.656)

3.05 Earnings before financial income/loss and tax (41.589) (220.392)

3.06 Financial Income/Loss (30.342) (30.509)

3.06.01 Financial Revenue 62.753 14.982

3.06.01.01 Exchange Variance Gain 19.137 3.407

3.06.01.02 Interest-earning bank deposits 1.459 4.314

3.06.01.03 Derivative Financial Instruments 9.036 (1.443)

3.06.01.04 Fair value of debentures - (251)

3.06.01.05 Other Financial Revenue 61 1

3.06.01.06 Interest on loans 33.060 8.954

3.06.02 Financial Expenses (93.095) (45.491)

3.06.02.01 Exchange Variance Loss (15.149) (1.981)

3.06.02.02 Derivative Financial Instruments - (2.831)

3.06.02.03 Debenture Interest/Cost (211) (213)

3.06.02.04 Fair value of debentures - -

3.06.02.05 Debt charges (75.421) (23.349)

3.06.02.06 Other Financial Expenses (2.314) (17.117)

3.07 Earnings before tax on net income (71.931) (250.901)

3.08 Income and social contribution taxes on profit - -

3.08.01 Current - -

3.08.02 Deferred charges - -

3.09 Net Income from Continued Operations (71.931) (250.901)

3.10 Net Income from Discontinued Operations - -

3.10.01 Net income (loss) for the year from discontinued operations - -

3.10.02 Net Gains/Losses on Assets of Discontinued Operations - -

3.11 Net Income/Loss for the Period (71.931) (250.901)

3.99 Earnings per Share - (Reais / Share) - -

3.99.01 Basic Earnings per Share - -

3.99.01.01 Common (0) (0)

3.99.02 Diluted Earnings per Share - -

Eneva S.A.


Statement of Comprehensive Income

5



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

4.01 Net Income for the Period (71.931) (250.901)

4.02 Other Comprehensive Income (765) (1.763)

4.02.01 Cash flow hedges - hedge accounting - (1.100)

4.02.02 Effective portion of the changes in fair value of cash flow hedges - hedge accounting (1.160) (1.005)

4.02.03 Deferred income and social contribution taxes - hedge accounting 395 342

4.03 Comprehensive Income for the Period (72.696) (252.664)

Eneva S.A.


Statement of Cash Flows - Indirect Method

6



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

6.01 Net Cash from Operating Activities 232.719 (20.076)

6.01.01 Cash Provided by Operating Activities 30.896 (19.276)

6.01.01.01 Net income/loss before IR and CSLL (71.931) (250.901)

6.01.01.02 Depreciation and Amortization 525 453

6.01.01.03 Equity in Net Income of Subsidiaries 35.006 195.656

6.01.01.04 Operations with derivative financial instruments (9.036) 4.274

6.01.01.05 Stock Options Awarded 4.671 7.819

6.01.01.06 Amortization of deferred charges - -

6.01.01.07 Investment devaluation 165 (3)

6.01.01.08 Provision for Unsecured Liabilities (36) 1.040

6.01.01.09 Provision for Disassembly - -

6.01.01.10 Minority Interests - -

6.01.01.11 Deferred income and social contribution liabilities, net - -

6.01.01.12 Current income and social contribution taxes - -

6.01.01.13 Debenture Interest/Cost 211 213

6.01.01.14 Fair value of debentures - 251

6.01.01.15 Interest on loans and related parties 71.433 21.922

6.01.01.16 Adjustment for exchange loss - -

6.01.01.17 Equity Appraisal - -

6.01.01.18 Other (112) -

6.01.02 Changes in Assets and Liabilities 201.823 (800)

6.01.02.01 Other Advances (143) (39)

6.01.02.02 Prepaid Expenses - -


6.01.02.04 Escrow Deposits - -

6.01.02.05 Recoverable Taxes (2.575) (1.486)

6.01.02.06 Inventory - -


6.01.02.09 Taxes, Duties and Contributions (134) 341

6.01.02.10 Trade payables 1.840 2.746

6.01.02.11 Provisions and payroll charges 581 661

6.01.02.12 Accounts Payable - -

6.01.02.13 CCC Subsidies Receivable - -

6.01.02.14 Debts / Credits with related parties 202.498 (2.531)

6.01.02.15 AFAC to associated companies - -

6.01.02.16 Other Changes in investments - -

6.01.02.17 K ƚŚĞƌෆ��ƐƐĞƚƐ�ĂŶĚ�>ŝĂďŝůŝƟĞƐ (244) (492)

6.01.02.18 Cash effect Spin-off CCX Carvão da Colômbia - -

6.01.02.19 Cash effect spin-off of E.On - -

6.01.03 Other - -

6.02 Net Cash from Investment Activities (162.568) (389.496)

6.02.01 Acquisition of PPE and intangible assets (435) (226)

6.02.02 Write-off of PPE and intangible assets - -

6.02.03 Securities - -

6.02.04 Capital contribution/AFAC in investments (92.170) (361.789)

6.02.05 Cash resulting from sale of property, plant and equipment and intangible assets - -

6.02.06 AFAC to associated companies - -

6.02.07 Debt to related parties (69.962) (28.145)

6.02.08 Dividend - 2.040

6.02.09 Contractual Retentions - -

6.02.10 Escrow Deposits (1) (1.376)

6.03 Net Cash from Financing Activities (160.613) 450.061

6.03.01 Financial Instruments - 315

6.03.02 Capital Increase - 241

6.03.03 Debt to related parties - -


6.03.07 Loans and Financing Obtained (160.576) 449.550

6.03.08 Capital decrease deriving from noncontrolling interests - -

6.03.09 Escrow Deposits - -

6.03.10 Issuance (payment) of debentures (37) (45)

6.03.11 AFAC to subsidiaries - -

6.03.12 Dividends - -

6.03.13 Adjustment spin-off CCX Carvão - Colombia - -

6.04 Exchange Variance on Cash and Cash Equivalents - -

6.05 Increase (Decrease) in Cash and Cash Equivalents (90.462) 40.489

6.05.01 Opening Balance of Cash and Cash Equivalents 110.156 206.263

6.05.02 Closing Balance of Cash and Cash Equivalents 19.694 246.752

Eneva S.A.


Statement of Changes in EquityPeriod from 01/01/2014 to 03/31/2014

7



Paid-in share

capital

Capital

Reserves,

Options

Awarded and

Treasury Stock Profit Reserves

Retained

Earnings or

Accumulated

Losses

Other

Comprehensive

Income

Shareholders’

Equity

5.01 Opening Balances 4.532.315 350.514 - (2.360.800) (53.284) 2.468.745

5.02 Prior-year Adjustments - - - - - -

5.03 Adjusted Opening Balances 4.532.315 350.514 - (2.360.800) (53.284) 2.468.745

5.04 Capital Transactions with Partners - 3.511 - - - 3.511

5.04.01 Capital Increases - - - - - -

5.04.02 Stock Issuance Expense - - - - - -

5.04.03 Awarded Options Recognized - 3.511 - - - 3.511

5.04.04 Treasury Stock Acquired - - - - - -

5.04.05 Treasury Stock Sold - - - - - -

5.04.06 Dividends - - - - - -

5.04.07 Interest in Shareholders’ Equity - - - - - -

5.05 Total Comprehensive Income - - - (71.931) 1.160 (70.771)

5.05.01 Net Income for the Period - - - - - -

5.05.02 Other Comprehensive Income - - - (71.931) 1.160 (70.771)

5.05.02.01 Financial Instrument Adjustments - - - - 1.160 1.160

5.05.02.02 Tax on Financial Instrument Adjustments - - - - - -

5.05.02.03 Equity Income on Comp. Income Subsidiaries and Associated Companies- - - - - -

5.05.02.04 Translation Adjustments in the Period - - - - - -

5.05.02.05 Taxes on Translation Adjustments in the Period - - - - - -

5.05.02.06 Loss for the period - - - (71.931) - (71.931)

5.05.03 Reclassification to Net Income - - - - - -

5.05.03.01 Financial Instrument Adjustments - - - - - -

5.06 Internal Changes in Shareholders' Equity - - - - - -

5.06.01 Creation of Reserves - - - - - -

5.06.02 Realization of Revaluation Reserve - - - - - -

5.06.03 Taxes on Realization of Revaluation Reserve - - - - - -

5.07 Closing Balances 4.532.315 354.025 - (2.432.731) (52.124) 2.401.485

Eneva S.A.


Statement of Changes in EquityPeriod from 01/01/2013 to 03/31/2013

8



Paid-in share

capital

Capital

Reserves,

Options

Awarded and


Retained

Earnings or

Accumulated

Losses

Other

Comprehensive

Income

Shareholders’

Equity

5.01 Opening Balances 3.731.734 321.904 - (1.364.978) (119.067) 2.569.593

5.02 Prior-year Adjustments - - - - - -

5.03 Adjusted Opening Balances 3.731.734 321.904 - (1.364.978) (119.067) 2.569.593

5.04 Capital Transactions with Partners 241 5.714 - - - 5.955

5.04.01 Capital Increases 241 - - - - 241

5.04.02 Stock Issuance Expense - - - - - -

5.04.03 Awarded Options Recognized - 5.714 - - - 5.714

5.04.04 Treasury Stock Acquired - - - - - -

5.04.05 Treasury Stock Sold - - - - - -

5.04.06 Dividends - - - - - -

5.04.07 Interest in Shareholders’ Equity - - - - - -

5.05 Total Comprehensive Income - - - (250.901) 2.105 (248.796)

5.05.01 Net Income for the Period - - - - - -

5.05.02 Other Comprehensive Income - - - (250.901) 2.105 (248.796)

5.05.02.01 Financial Instrument Adjustments - - - - 1.005 1.005

5.05.02.02 Tax on Financial Instrument Adjustments - - - - - -

5.05.02.03 Equity Income on Comp. Income Subsidiaries and Associated Companies- - - - - -

5.05.02.04 Translation Adjustments in the Period - - - - 1.100 1.100

5.05.02.05 Taxes on Translation Adjustments in the Period - - - - - -

5.05.02.07 Loss for the Period - - - (250.901) - (250.901)

5.05.03 Reclassification to Net Income - - - - - -

5.05.03.01 Financial Instrument Adjustments - - - - - -

5.06 Internal Changes in Shareholders' Equity - - - - - -

5.06.01 Creation of Reserves - - - - - -

5.06.02 Realization of Revaluation Reserve - - - - - -

5.06.03 Taxes on Realization of Revaluation Reserve - - - - - -

5.07 Closing Balances 3.731.975 327.618 - (1.615.879) (116.962) 2.326.752

Eneva S.A.


Statement of Value Added

9



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

7.01 Revenue - -

7.01.01 Sales of Goods, Products and Services - -

7.01.02 Other Revenue - -

7.01.03 Revenue relating to construction of company assets - -

7.01.04 Allowance/(Reversal of allowance) for doubtful accounts - -

7.02 Consumables acquired from third parties (12.447) (10.918)

7.02.01 Cost of goods and services sold - -

7.02.02 Material, Energy, Outsourced Services and Other (12.447) (10.918)

7.02.03 Loss/Recovery of Assets - -

7.02.04 Other - -

7.03 Gross Added Value (12.447) (10.918)

7.04 Retentions (525) (453)

7.04.01 Depreciation, Amortization and Depletion (525) (453)

7.04.02 Other - -

7.05 Net Added Value Produced (12.972) (11.371)

7.06 Transferred Added Value 30.340 (185.107)



7.06.03 Other 63.825 6.472


7.06.03.02 Provision for Unsecured Liabilities 36 (1.040)

7.06.03.04 Provision for devaluation of investments (165) 3



7.07 Total Added Value to be Distributed 17.368 (196.478)

7.08 Distribution of Added Value 17.368 (196.478)

7.08.01 Personnel 13.287 11.122

7.08.01.01 Direct Remuneration 8.402 8.536

7.08.01.02 Benefits 2.213 948

7.08.01.03 F.G.T.S. 2.672 1.638

7.08.01.04 Other - -

7.08.02 Taxes, Duties and Contributions 319 12

7.08.02.01 Federal 319 12

7.08.02.02 State - -

7.08.02.03 Municipal - -

7.08.03 Interest Expenses 75.693 43.289

7.08.03.01 Interest 211 213

7.08.03.02 Rent 1.348 1.080

7.08.03.03 Other 74.134 41.996

7.08.03.03.01 Losses on Derivative Transactions - 2.831

7.08.03.03.02 Advances to suppliers - -

7.08.03.03.03 Insurance 398 127

7.08.03.03.04 Exchange Variance (3.987) (1.426)

7.08.03.03.05 Studies and Projects - -

7.08.03.03.06 Financial Expenses 77.735 40.464

7.08.03.03.07 Other (12) -

7.08.04 Interest earnings (71.931) (250.901)

7.08.04.01 Interest on Shareholders’ Equity - -

7.08.04.02 Dividends - -

7.08.04.03 Retained Earnings/Loss for the Period (71.931) (250.901)

7.08.05 Other - -

Eneva S.A.


Consolidated Balance Sheet - Assets

10



Current Quarter

3/31/2014

Previous Year

12/31/2013

1 Total Assets 9.497.656 9.689.212

1.01 Current Assets 639.157 747.842

1.01.01 Cash and Cash Equivalents 96.801 277.582

1.01.01.01 Cash and Bank deposits 57.271 16.493

1.01.01.02 Fundo Multimercado MPX 63 30.693 202.444

1.01.01.03 Bradesco Corporate FIC FI Referenciado DI Federal - -

1.01.01.04 CDB 8.838 58.645

1.01.01.05 Other Fixed-Income Investments - -

1.01.02 Short-term Investments - -




1.01.02.01.03 Securities - -



1.01.03 Accounts Receivable 344.704 294.396

1.01.03.01 Trade accounts receivable 344.704 294.396

1.01.03.02 Other Accounts Receivable - -

1.01.04 Inventories 78.345 78.376

1.01.05 Agricultural Assets - -

1.01.06 Recoverable Taxes 55.950 47.651

1.01.06.01 Current Taxes Recoverable 55.950 47.651

1.01.07 Prepaid Expenses 10.601 9.825

1.01.08 Other Current Assets 52.757 40.012

1.01.08.01 Noncurrent Assets for Sale - -

1.01.08.02 Assets of Discontinued Operations - -

1.01.08.03 Other 52.757 40.012

1.01.08.03.01 Other Advances 5.783 5.001

1.01.08.03.03 Gain on Derivatives - 4.171

1.01.08.03.04 Escrow Deposits 39 38

1.01.08.03.05 CCC subsidies receivable 46.935 30.802


1.02 Noncurrent Assets 8.858.499 8.941.370

1.02.01 Long-Term Assets 854.497 966.682







1.02.01.03.01 Trade accounts receivable - -


1.02.01.04 Inventories - -

1.02.01.05 Agricultural Assets - -

1.02.01.06 Deferred Taxes 304.077 302.327

1.02.01.06.01 Deferred Income and Social Contribution Taxes 304.077 302.327

1.02.01.07 Prepaid Expenses 2.171 2.905

1.02.01.08 Related-party Credits - -

1.02.01.08.01 Credits with Associated Companies - -

1.02.01.08.03 Credits with Controlling Shareholders - -

1.02.01.08.04 Other Related-party Credits - -

1.02.01.09 Other Noncurrent Assets 548.250 661.450

1.02.01.09.01 Noncurrent Assets for Sale - -

1.02.01.09.02 Assets of Discontinued Operations - -

1.02.01.09.03 Gain on Derivatives - -

1.02.01.09.04 Escrow Deposits 128.672 118.606

1.02.01.09.05 CCC Subsidies Receivable - -

1.02.01.09.07 Recoverable Taxes 14.378 14.614

1.02.01.09.08 Accounts receivable from other related parties 13.886 218.680

1.02.01.09.09 AFAC at joint ventures 185 150

1.02.01.09.11 Loan with joint ventures 246.305 191.968

1.02.01.09.12 Accounts receivable from joint ventures 131.615 117.372

1.02.01.09.13 Embedded derivatives 13.207 -

1.02.01.09.14 Other Accounts Receivable 2 60

1.02.01.09.15 Securities - -

1.02.02 Investments 957.331 941.853

1.02.02.01 Equity Interests 957.331 941.853

1.02.02.01.01 Interests in Associated Companies 79.760 51.899

1.02.02.01.04 Other Equity Interests 877.571 889.954

1.02.02.02 Property for Investment - -

1.02.03 Property, plant and equipment 6.836.644 6.819.454

1.02.03.01 Property, plant and equipment in operation - -

1.02.03.02 Leased property, plant and equipment - -

1.02.03.03 Property, plant and equipment in progress - -

1.02.04 Intangible assets 210.026 213.381

1.02.04.01 Intangible assets - -

1.02.04.01.01 Concession Agreement - -

1.02.04.02 Goodwill - -

Eneva S.A.


Consolidated Balance Sheet - Liabilities

11



Current Quarter

3/31/2014

Previous Year

12/31/2013

2 Total Liabilities 9.497.656 9.689.212

2.01 Current Liabilities 3.052.426 2.978.859

2.01.01 Social and labor obligations 18.267 16.770

2.01.01.01 Payroll Obligations - -

2.01.01.02 Labor Obligations 18.267 16.770

2.01.02 Trade payables 338.185 331.216

2.01.02.01 Domestic Trade Payables 338.185 331.216

2.01.02.02 Foreign Trade payables - -

2.01.03 Tax Obligations 37.507 45.934

2.01.03.01 Federal Tax Liabilities 37.507 45.934

2.01.03.01.01 Income taxes and contributions payable 37.507 45.934

2.01.03.02 State Tax Liabilities - -

2.01.03.03 Municipal Tax Liabilities - -





2.01.04.02 Debentures 169 112

2.01.04.02.01 Principal - -

2.01.04.02.02 Interest 169 112



2.01.05.01 Related-Party Transactions - -



2.01.05.01.04 Debts with Other Related Parties - -

2.01.05.02 Other 180.202 176.685

2.01.05.02.01 Dividends and Interest on Shareholder's Equity Payable - -

2.01.05.02.02 Minimum Mandatory Dividend Payable - -



2.01.05.02.05 Contractual Retentions 79.942 84.789

2.01.05.02.06 Other Advances - -

2.01.05.02.07 Profit Sharing 8.148 8.148

2.01.05.02.08 Dividends Payable - -

2.01.05.02.09 Other liabilities 92.112 83.748

2.01.06 Provisions - -






2.01.06.02 Other Provisions - -







2.02 Noncurrent Liabilities 3.933.603 4.136.480





2.02.01.02 Debentures 5.356 5.239

2.02.01.02.01 Principal 4.605 4.605

2.02.01.02.02 Interest 751 634

2.02.01.02.03 Embedded Derivatives - -



2.02.02.01 Related-Party Transactions 286.704 307.720



2.02.02.01.04 Debts with Other Related Parties 286.704 307.720

2.02.02.02 Other - -


2.02.02.02.02 Advance for Future Capital Increase - -


2.02.02.02.04 Devaluation of investments - -

Eneva S.A.


Consolidated Balance Sheet - Liabilities (continued)

12



Current Quarter

3/31/2014

Previous Year

12/31/2013

2.02.03 Deferred Taxes 12.444 9.591

2.02.03.01 Deferred Income and Social Contribution Taxes 12.444 9.591

2.02.04 Provisions 8.331 11.552






2.02.04.02 Other Provisions 8.331 11.552




2.02.04.02.04 Provision for Disassembly 2.317 2.266

2.02.04.02.05 Unsecured Liability 6.014 9.286




2.02.06 Unappropriated Profits and Revenue - -

2.02.06.01 Unappropriated Profits - -

2.02.06.02 Unappropriated Revenue - -

2.02.06.03 Unappropriated Investment Subsidies - -

2.03 Consolidated Shareholders’ Equity 2.511.627 2.573.873

2.03.01 Realized Capital 4.532.314 4.532.313

2.03.02 Capital Reserves 354.025 350.514

2.03.02.01 Goodwill on Share Issuance - -

2.03.02.02 Special Goodwill Reserve under Merger - -

2.03.02.03 Sale of Subscription Bonus - -

2.03.02.04 Options Awarded 354.025 350.514


2.03.02.06 Advance for Future Capital Increase - -

2.03.02.07 Investments Reserve - -

2.03.02.08 Capital Reserves - -

2.03.03 Revaluation Reserves - -

2.03.04 Profit Reserves - -

2.03.04.01 Legal Reserve - -

2.03.04.02 Statutory Reserve - -

2.03.04.03 Reserve for Contingencies - -

2.03.04.04 Unrealized Profit Reserve - -

2.03.04.05 Profit Retention Reserve - -

2.03.04.06 Special Reserve for Undistributed Dividends - -

2.03.04.07 Tax Incentive Reserve - -

2.03.04.08 Additional Dividend Proposed - -


2.03.05 Retained Earnings/Accumulated Losses (2.447.591) (2.379.303)

2.03.06 Equity Appraisal Adjustments (52.124) (53.284)

2.03.07 Accumulated Translation Adjustments - -

2.03.08 Other Comprehensive Income - -

2.03.09 Minority Interests 125.233 123.633

Eneva S.A.


Consolidated Statement of Income

13



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

3.01 Revenue from goods sold and services rendered 586.771 196.098

3.02 Cost of goods and/or services sold (494.779) (312.608)

3.03 Gross Profit 91.993 (116.510)

3.04 Operating Income/Expenses (34.428) (123.531)

3.04.01 Sales Expenses - -

3.04.02 General and Administrative Expenses (36.791) (39.029)

3.04.02.01 Personnel and Management (15.292) (20.298)

3.04.02.02 Outsourced Services (17.358) (14.062)

3.04.02.03 Depreciation and Amortization (768) (638)

3.04.02.04 Leasing and Rentals (1.528) (1.677)

3.04.02.05 Other Expenses (1.845) (2.354)

3.04.03 Impairment of assets - -

3.04.04 Other Operating Income 21.870 511


3.04.04.02 Other 12 511

3.04.05 Other Operating Expenses (12.144) (1.522)

3.04.05.01 Unsecured Liability 110 (973)

3.04.05.02 Provision for investment losses (6.718) 3

3.04.05.03 Losses on the sale of assets - (552)

3.04.05.06 Other (5.538) -


3.05 Earnings before financial income/loss and tax 57.565 (240.041)

3.06 Financial Income/Loss (124.293) (77.827)


3.06.01.01 Exchange Variance Gain 21.368 3.888

3.06.01.02 Interest-earning bank deposits 5.433 4.922


3.06.01.04 Fair value of debentures - (251)

3.06.01.05 Other Financial Revenue 874 631


3.06.02 Financial Expenses (174.811) (90.528)

3.06.02.01 Exchange Variance Loss (16.012) (2.263)

3.06.02.02 Derivative Financial Instruments - (2.250)

3.06.02.03 Debenture Interest/Cost (211) (213)

3.06.02.04 Fair value of debentures - -

3.06.02.05 Debt charges (149.417) (58.087)

3.06.02.06 Other Financial Expenses (9.170) (27.713)

3.07 Earnings before tax on net income (66.728) (317.868)

3.08 Income and social contribution taxes on profit (3.837) 60.807

3.08.01 Current (2.733) -

3.08.02 Deferred charges (1.103) 60.807

3.09 Net Income from Continued Operations (70.565) (257.061)

3.10 Net Income from Discontinued Operations - -

3.10.01 Net income (loss) for the year from discontinued operations - -

3.10.02 Net Gains/Losses on Assets of Discontinued Operations - -

3.11 Consolidated Net Income/Loss for the Period (70.565) (257.061)

3.11.01 Attributed to Partners of the Parent Company (71.931) (250.901)

3.11.02 Attributed to Minority Partners 1.365 (6.160)

3.99 Earnings per Share - (Reais / Share) - -

3.99.01 Basic Earnings per Share - -

3.99.01.01 Common (0) (0)

3.99.02 Diluted Earnings per Share - -

Eneva S.A.


Consolidated Statement of Comprehensive Income

14



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

4.01 Consolidated Net Income for the Period (70.565) (257.061)

4.02 Other Comprehensive Income (765) (1.763)

4.02.01 Accumulated Translation Adjustments - (1.100)

4.02.02 Effective portion of the changes in fair value of cash flow hedges - hedge accounting (1.160) (1.005)

4.02.03 Deferred income and social contribution taxes - hedge accounting 394 342

4.03 Consolidated Comprehensive Income for the Period (71.331) (258.824)

4.03.01 Attributed to Partners of the Parent Company (72.696) (252.664)

4.03.02 Attributed to Minority Partners 1.365 (6.160)

Eneva S.A.


Consolidated Statement of Cash Flows - Indirect Method

15



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

6.01 Net Cash from Operating Activities 250.402 (98.573)

6.01.01 Cash Provided by Operating Activities 150.971 (147.065)

6.01.01.01 Net income/loss before IR and CSLL (66.728) (317.868)

6.01.01.02 Depreciation and Amortization 48.711 17.895

6.01.01.03 Equity in Net Income of Subsidiaries 7.361 83.491

6.01.01.04 Operations with derivative financial instruments (9.036) 3.693

6.01.01.05 Stock Options Awarded 4.671 7.819

6.01.01.06 Amortization of deferred charges - -

6.01.01.07 Investment devaluation 6.718 (3)

6.01.01.08 Provision for Unsecured Liabilities (110) 973

6.01.01.09 Provision for Disassembly 51 8

6.01.01.10 Minority Interests - -

6.01.01.11 Deferred income and social contribution liabilities, net - -

6.01.01.12 Current income and social contribution taxes - -

6.01.01.13 Debenture Interest/Cost 211 213

6.01.01.14 Fair value of debentures - 251

6.01.01.15 Interest on loans and related parties 144.062 56.463

6.01.01.16 Adjustment for exchange loss - -

6.01.01.17 Equity Appraisal - -

6.01.01.18 Other 15.062 -

6.01.02 Changes in Assets and Liabilities 99.431 48.493

6.01.02.01 Other Advances (782) (879)

6.01.02.02 Prepaid Expenses (42) 4.354

6.01.02.03 Accounts Receivable (50.308) (207.619)

6.01.02.04 Escrow Deposits - -

6.01.02.05 Recoverable Taxes (8.063) (23.491)

6.01.02.06 Inventory 31 11.876


6.01.02.09 Taxes, Duties and Contributions (8.427) 32.423

6.01.02.10 Trade payables 6.969 187.469

6.01.02.11 Provisions and payroll charges 1.496 1.502

6.01.02.12 Accounts Payable 8.365 1.470

6.01.02.13 CCC Subsidies Receivable (16.133) 7.509

6.01.02.14 Debts / Credits with related parties 169.539 34.484

6.01.02.15 AFAC to associated companies - -

6.01.02.16 Other Changes in investments - -

6.01.02.17 K ƚŚĞƌෆ��ƐƐĞƚƐ�ĂŶĚ�>ŝĂďŝůŝƟĞƐ (3.213) (606)

6.01.02.18 Cash effect Spin-off CCX Carvão da Colômbia - -

6.01.02.19 Cash effect spin-off of E.On - -

6.01.03 Other - -

6.02 Net Cash from Investment Activities (175.427) (532.035)

6.02.01 Acquisition of PPE and intangible assets (77.658) (381.505)

6.02.02 Write-off of PPE and intangible assets - -

6.02.03 Securities - (2.159)

6.02.04 Capital contribution/AFAC in investments (28.529) (76.596)

6.02.05 Cash resulting from sale of property, plant and equipment and intangible assets 12 -

6.02.06 AFAC to associated companies - -

6.02.07 Debt to related parties (54.337) (22.841)

6.02.08 Dividends - -

6.02.09 Contractual Retentions (4.847) (45.608)

6.02.10 Escrow Deposits (10.067) (3.328)

6.03 Net Cash from Financing Activities (255.757) 470.453

6.03.01 Financial Instruments - (41)

6.03.02 Capital Increase - 241

6.03.03 Debt to related parties - -


6.03.07 Loans and Financing Obtained (255.720) 478.581

6.03.08 Capital decrease deriving from noncontrolling interests - (6.322)

6.03.09 Escrow Deposits - -

6.03.10 Issuance (payment) of debentures (37) (45)

6.03.11 AFAC to subsidiaries - -

6.03.12 Dividends - (1.960)

6.03.13 Adjustment spin-off CCX Carvão - Colombia - -

6.04 Exchange Variance on Cash and Cash Equivalents - -

6.05 Increase (Decrease) in Cash and Cash Equivalents (180.782) (160.156)

6.05.01 Opening Balance of Cash and Cash Equivalents 277.583 519.277

6.05.02 Closing Balance of Cash and Cash Equivalents 96.801 359.121

Eneva S.A.


Consolidated Statement of Changes in EquityPeriod from 01/01/2014 to 03/31/2014

16



Paid-in share

capital

Capital

Reserves,

Options

Awarded and


Retained

Earnings or

Accumulated

Losses

Other

Comprehensive

Income

Shareholders’

Equity

Minority

interests

Consolidated

Shareholders’

Equity

5.01 Opening Balances 4.532.314 350.514 - (2.379.303) (53.284) 2.450.242 123.633 2.573.873

5.02 Prior-year Adjustments - - - - - - - -

5.03 Adjusted Opening Balances 4.532.314 350.514 - (2.379.303) (53.284) 2.450.242 123.633 2.573.873

5.04 Capital Transactions with Partners - 3.511 - 3.642 - 7.153 - 7.153

5.04.01 Capital Increases - - - - - - - -

5.04.02 Stock Issuance Expense - - - - - - - -

5.04.03 Awarded Options Recognized - 3.511 - - - 3.511 - 3.511

5.04.04 Treasury Stock Acquired - - - - - - - -

5.04.05 Treasury Stock Sold - - - - - - - -

5.04.06 Dividends - - - - - - - -

5.04.07 Interest in Shareholders’ Equity - - - - - - - -

5.04.09 Deferred Asset Adjustment - - - 3.642 - 3.642 - 3.642

5.05 Total Comprehensive Income - - - (71.931) 1.160 (70.771) 1.370 (69.401)

5.05.01 Net Income for the Period - - - - - - - -

5.05.02 Other Comprehensive Income - - - (71.931) 1.160 (70.771) 1.370 (69.401)

5.05.02.01 Financial Instrument Adjustments - - - - 1.160 1.160 - 1.160

5.05.02.02 Tax on Financial Instrument Adjustments - - - - - - - -

5.05.02.03 Equity Income on Comp. Income Associated companies - - - - - - - -

5.05.02.04 Translation Adjustments in the Period - - - - - - - -

5.05.02.05 Taxes on Translation Adjustments in the Period - - - - - - - -

5.05.02.07 Loss for the period - - - (71.931) - (71.931) 1.365 (70.565)

5.05.02.08 Minority interest - - - - - - 5 5

5.05.03 Reclassification to Net Income - - - - - - - -

5.05.03.01 Financial Instrument Adjustments - - - - - - - -

5.06 Internal Changes in Shareholders' Equity - - - - - - - -

5.06.01 Creation of Reserves - - - - - - - -

5.06.02 Realization of Revaluation Reserve - - - - - - - -

5.06.03 Taxes on Realization of Revaluation Reserve - - - - - - - -

5.07 Closing Balances 4.532.314 354.025 - (2.447.591) (52.124) 2.386.624 125.003 2.511.626

Eneva S.A.


Consolidated Statement of Changes in EquityPeriod from 01/01/2013 to 03/31/2013

17



Paid-in share

capital

Capital

Reserves,

Options

Awarded and


Retained

Earnings or

Accumulated

Losses

Other

Comprehensive

Income

Shareholders’

Equity

Minority

interests

Consolidated

Shareholders’

Equity

Opening Balances 3.731.734 321.904 - (1.384.971) (119.067) 2.549.600 151.538 2.701.138

Prior-year Adjustments - - - - - - - -

Adjusted Opening Balances 3.731.734 321.904 - (1.384.971) (119.067) 2.549.600 151.538 2.701.138

Capital Transactions with Partners 241 5.714 - 372 - 6.327 (5.568) 759

Capital Increases 241 - - - - 241 (5.568) (5.327)

Stock Issuance Expense - - - - - - - -

Awarded Options Recognized - 5.714 - - - 5.714 - 5.714

Treasury Stock Acquired - - - - - - - -

Treasury Stock Sold - - - - - - - -

Dividends - - - - - - - -

Interest in Shareholders’ Equity - - - - - - - -

Deferred Asset Adjustment - - - 372 - 372 - 372

Total Comprehensive Income - - - (250.901) 2.105 (248.796) (754) (249.550)

Net Income for the Period - - - - - - - -

Other Comprehensive Income - - - (250.901) 2.105 (248.796) (754) (249.550)

Financial Instrument Adjustments - - - - 1.005 1.005 - 1.005

Tax on Financial Instrument Adjustments - - - - - - - -

Equity Income on Comp. Income Associated companies - - - - - - - -

Translation Adjustments in the Period - - - - 1.100 1.100 - 1.100

Taxes on Translation Adjustments in the Period - - - - - - - -

Loss for the Period - - - (250.901) - (250.901) (754) (251.655)

Reclassification to Net Income - - - - - - - -

Financial Instrument Adjustments - - - - - - - -

Internal Changes in Shareholders' Equity - - - - - - - -

Creation of Reserves - - - - - - - -

Realization of Revaluation Reserve - - - - - - - -

Taxes on Realization of Revaluation Reserve - - - - - - - -

Closing Balances 3.731.975 327.618 - (1.635.500) (116.962) 2.307.131 145.216 2.452.347

Eneva S.A.


Consolidated Statement of Value Added

18



Accrued Value

of the Current

Year 1/1/2014

to 3/31/2014

Accrued Value

of the Prior Year

1/1/2013 to

3/31/2013

7.01 Revenue 600.606 559.700

7.01.01 Sales of Goods, Products and Services 586.771 196.098

7.01.02 Other Revenue - -

7.01.03 Revenue relating to construction of company assets 13.835 363.602

7.01.04 Allowance/(Reversal of allowance) for doubtful accounts - -

7.02 Consumables acquired from third parties (348.025) (289.979)

7.02.01 Cost of goods and services sold - -

7.02.02 Material, Energy, Outsourced Services and Other (348.025) (289.979)

7.02.03 Loss/Recovery of Assets - -

7.02.04 Other - -

7.03 Gross Added Value 252.582 269.721

7.04 Retentions (48.711) (17.895)

7.04.01 Depreciation, Amortization and Depletion (48.711) (17.895)

7.04.02 Other - -

7.05 Net Added Value Produced 203.871 251.826

7.06 Transferred Added Value 37.039 (75.648)



7.06.03 Other 38.034 2.541


7.06.03.02 Provision for Unsecured Liabilities 110 (973)

7.06.03.04 Provision for devaluation of investments (6.718) 3



7.07 Total Added Value to be Distributed 240.910 176.178

7.08 Distribution of Added Value 240.910 176.178

7.08.01 Personnel 28.312 25.611

7.08.01.01 Direct Remuneration 15.230 17.977

7.08.01.02 Benefits 6.518 2.604

7.08.01.03 F.G.T.S. 6.564 5.030

7.08.01.04 Other - -

7.08.02 Taxes, Duties and Contributions 4.241 (60.614)

7.08.02.01 Federal 4.241 (60.614)

7.08.02.02 State - -

7.08.02.03 Municipal - -

7.08.03 Interest Expenses 278.922 468.242

7.08.03.01 Interest 211 167

7.08.03.02 Rent 99.981 17.117

7.08.03.03 Other 178.729 450.958

7.08.03.03.01 Losses on Derivative Transactions - 2.250

7.08.03.03.02 Advances to suppliers 13.835 363.688

7.08.03.03.03 Insurance 6.137 843

7.08.03.03.04 Exchange Variance (5.356) (1.625)

7.08.03.03.05 Studies and Projects - -

7.08.03.03.06 Financial Expenses 158.587 85.802

7.08.03.03.07 Other 5.526 -

7.08.04 Interest earnings (70.565) (257.061)

7.08.04.01 Interest on Shareholders’ Equity - -

7.08.04.02 Dividends - -

7.08.04.03 Retained Earnings/Loss for the Period (71.931) (250.901)

7.08.04.04 - Minority interests in retained earnings 1.365 (6.160)

7.08.05 Other - -

(A free translation of the original in Portuguese)

Eneva S.A.(Publicly held company)

Notes to the quarterly information - ITRat March 31, 2014In thousands of reais, unless stated otherwise

19

1 Reporting entity

MPX Energia S.A. ("Company") was founded on April 25, 2001 and is headquartered in Rio deJaneiro. The Extraordinary General Meeting held on September 11, 2013 approved the decision tochange the Company's name to Eneva S.A.

Its core activity is the generation of electricity through the development of a diversified portfolio ofsources, including mineral coal, natural gas and renewable sources. The Company has a diversifiedportfolio of projects, including thermal power plants in Brazil, in addition to renewable energyprojects, such as solar and wind energy. In order to integrate its operations, the Company is also ashareholder in a natural gas production and exploration project in Brazil, which supplies gas toplants built by the company in Maranhão.

The Company participates as a quotaholder or shareholder of the companies that implement theseprojects and certain projects will be implemented in partnership with other parties in the energysector. These projects were primarily funded through funds obtained under the Company's publicshare offering made on December 14, 2007 and January 11, 2008 (supplementary lot), amounting toR$ 2,035,410, in addition to financing and the issuance of 21,735,744 convertible debentures onJune 15, 2011 amounting to R$ 1,376,527. On May 24, 2012, 21,653,300 debentures were convertedgenerating the issuance of 33,255,219 new shares, as a result of the corporate reorganizationimplemented by the Company.

On March 28, 2013 the controlling shareholder of MPX Energia S.A., Mr. Eike Fuhrken Batista,entered into an investment agreement with E.ON SE consisting of the following events:

(a) On May 29, 2013 E.ON acquired Company shares held by Eike Batista accounting for approximately24.5% of the share capital.

(b) On the date the shares were acquired, E.ON and Eike Batista entered into a new shareholders'agreement, which regulated the exercising of voting rights and restrictions on the transfer of sharesheld by them.

(c) In August 2013 a private capital increase was concluded of approximately R$ 800 million, with asubscription price fixed at R$ 6.45 per share.

(d) The shareholders will subsequently be asked to approve the acquisition by the Company at the equityvalue of ENEVA Participações S.A., a joint-venture between the Company and EON ("JV").

As shown in the table below, on March 31, 2014 the economic group ("Group" or "Company")includes the Company and its equity interests in associated companies, direct and indirectsubsidiaries, joint ventures and the Multimercado MPX 63 investment fund. The companies that arealready in the opeational phase are (for further details about the subsidiaries see Note 12):

Parnaíba I Geração de Energia S.A.; Porto do Pecém Geração de Energia S.A.; Pecém II Geração de Energia S.A.; Itaqui Geração de Energia S.A.,; Amapari Energia S.A.; ENEVA Comercializadora de Energia Ltda., ENEVA Comercializadora de Combustíveis Ltda.,



20

Tauá Geração de Energia Ltda; Parnaíba III Geração de Energia S.A.; and Parnaíba IV Geração de Energia S.A.

* Joint subsidiary.** Associated company.


Notes to the quarterly information - ITRas of March 31, 2014In thousands of reais, unless stated otherwise

21

Directly or by way of its subsidiaries, joint subsidiaries and associated companies, the Company hasbeen making the investment required to finalize the ventures in its portfolio and subsequently beginthe commercial operation of the respective enterprises.

The Company contracted short-term debt to finance its operations in 2012, 2013 and 2014. Theconsolidated loans maturing in the next 12 months can be summarized as follows from March 31,2013:

Up to 3 months: R$ 146 million. Between 3 and 6 months: R$ 114 million. Between 6 and 9 months: R$ 2,109 million. Between 9 and 12 months: R$ 109 million.

The short-term debts were contracted to finance part of the investments made and to meet workingcapital requirements. The Company is also working to partially settle and roll forward its short-termdebts to the long term and is mainly considering the following events in its business plan:

Long-term financing for Panaíba II in 2014 of R$ 960 million.

Long-term financing for Panaíba III and IV of R$ 270 million.

Possibility of re-leveraging the Pecém II Geração de Energia and Itaqui Geração de Energia S.A.,ventures in operation via the issue of debentures of R$ 650 million.

Lengthening the short-term debt of the Parnaíba Geração de Energia venture in operation by atotal of R$ 125 million.

In addition to the re-leveraging of certain projects described above, the Company is analyzingpotential measures to bolster the capital structure and create the means necessary to permit asubstantial reduction in its leverage, see Note 29 subsequent events.



22

2 Licenses and permits

ENEVA is committed to obtaining all the legal licenses and permits required for each of its facilitiesand activities. The Company and its investees have the following environmental licenses and permitsat March 31, 2014:

Held by Ventures Licenses Expiry

ITAQUI GERAÇÃO DE ENERGIA S.A.UTE PORTO DO ITAQUI LO 1,101/2012 10/26/2017

TRANSMISSION LINE LO 1061/2011 12/16/2017

PORTO DO PECÉM GERAÇÃO DE ENERGIA S.A.UTE PORTO DO PECEM I LO 1,062/2012 12/28/2015

PECEM I TRANSMISSION LINE LO 889/2012 9/26/2015

PECÉM II GERAÇÃO DE ENERGIA S.A.UTE PORTO DO PECÉM II LO 09/2013 2/8/2016

PECEM II TRANSMISSION LINE LO 108/2013 7/17/2016

AMAPARI ENERGIA S.A. UTE SERRA DO NAVIO (including TL) LO 172/2013 3/25/2016

TAUÁ GERAÇÃO DE ENERGIA LTDA.

USINA SOLAR TAUÁ 1MW - (including TL) LO 133/2012* 2/28/2014

USINA SOLAR TAUÁ 4MW LI 15/2012* 3/5/2014

USINA SOLAR TAUÁ (45MW) LP 253/2012 8/15/2015

PARNAÍBA I GERAÇÃO DE ENERGIA S.A. MARANHÃO IV AND V LO 559/2012 12/20/2016

PARNAÍBA II GERAÇÃO DE ENERGIA S.A. MARANHÃO III LI 274/2011* 12/27/2013

PARNAÍBA I GERAÇÃO DE ENERGIA S.A. MARANHÃO IV AND V (cycle closure) LI 273/2011* 12/5/2013

ENEVA S.A. UTE PARNAIBA I LI 111/2012* 5/9/2013

ENEVA S.A. UTE PARNAÍBA II LI 003/12* 11/11/2013

PARNAÍBA IV GERAÇÃO DE ENERGIA S.A. PARNAÍBA IV LO 415/2013 11/25/2017

ENEVA S.A MC2 NOVA VENECIA 2 LO 1001972/2014 9/23/2017

UTE PORTO DO AÇU ENERGIA S.A.

- - -

UTE PORTO DO AÇU II LP IN 025871 12/30/2015

TRANSMISSION LINE LI IN 019365 4/24/2015

AÇU III GERAÇÃO DE ENERGIA LTDA.EÓLICA MARAVILHA LI IN 000208* 5/22/2012

EÓLICA MUNDÉUS LI IN 000207* 5/22/2012

ENEVA S.A. UTE SUL LP 332/2009* 12/22/2012

SUL GERAÇÃO DE ENERGIA LTDA. BARRAGEM SUL LP 601/2010* 5/21/2012

SEIVAL GERAÇÃO DE ENERGIA LTDA. UTE SEIVAL LI 589/2009* 2/17/2014

SEIVAL SUL MINERAÇÃO LTDA. SEIVAL MINE LO No. 9221/2009* 10/20/2013

CENTRAL EÓLICA MORADA NOVA LTDA. CGE MORADA NOVA LP 0010/2012

8/10/2014

CENTRAL EÓLICA SÃO FRANCISCO LTDA. CGE SÃO FRANCISCO LP 0083/2012

CENTRAL EÓLICA MILAGRES LTDA. CGE MILAGRES LP 0084/2012

CENTRAL EÓLICA SANTA LUZIA LTDA. CGE SANTA LUZIA LP 0085/2012

CENTRAL EÓLICA PEDRA VERMELHA I LTDA. CGE PEDRA VERMELHA I LP 0090/2012

CENTRAL EÓLICA ASA BRANCA LTDA. CGE ASA BRANCA LP 0091/2012

CENTRAL EÓLICA SANTO EXPEDITO LTDA. CGE SANTO EXPEDITO LP 0092/2012

CENTRAL EÓLICA PEDRA VERMELHA II LTDA. CGE PEDRA VERMELHA II LP 0093/2012

CENTRAL EÓLICA PAU D´ARCO LTDA CGE PAU D´ARCO LP 0184/2013 4/26/2015

CENTRAL EÓLICA PEDRA ROSADA LTDA CGE PEDRA ROSADA LP 0187/2013 5/2/2015

CENTRAL EÓLICA PAU BRANCO LTDA CGE PAU BRANCO LP 0189/2013 5/10/2015

CENTRAL EÓLICA ALGAROBA LTDA CGE ALGAROBA LP 0186/2013 5/6/2015

CENTRAL EÓLICA UBAEIRA I LTDA CGE UBAEIRA I LP 0188/2013 5/10/2015

CENTRAL EÓLICA UBAEIRA II LTDA CGE UBAEIRA II LP 0185/2013 5/6/2015

CENTRAL EÓLICA SANTA BENVINDA I LTDA CGE SANTA BENVINDA I LP 0183/2013 5/23/2015

CENTRAL EÓLICA SANTA BENVINDA II LTDA CGE SANTA BENVINDA II LP 0191/2013 5/10/2015

CENTRAL EÓLICA BOA VISTA I LTDA CGE BOA VISTA I LP 0268/2013 6/18/2015

CENTRAL EÓLICA BOA VISTA II LTDA CGE BOA VISTA II LP 0270/2013 6/18/2015

CENTRAL EÓLICA BONSUCESSO LTDA CGE BONSUCESSO LP 0271/2013 6/18/2015

CENTRAL EÓLICA PEDRA BRANCA LTDA CGE PEDRA BRANCA LP 0269/2013 6/18/2015

(*) The renewal of environmental licenses was applied for at least 120 (one hundred and twenty)days before the validity expired, as fixed in the respective license, and is extended automaticallyuntil the respective environmental authority states its final position. (Supplementary Law140/2011 Art. 14 (4).



23

3 Presentation of the financial statements

The financial statements have been prepared based on the historic cost basis, adjusted to realizationvalue when applicable, except for financial instruments held at fair value, including derivativeinstruments. The interim financial statements have been prepared in accordance with the accountingpolicies, principles, methods and consistent criteria in relation to those used to prepare the auditedfinancial statements for the financial year ended December 31, 2013 and should therefore be read inconjunction with them.

The preparation of financial statements requires the use of certain critical accounting estimates. Italso requires management to exercise its judgment in the process of applying the accounting policies.The areas involving a higher degree of judgment or complexity, or areas where assumptions andestimates are significant to the financial statements are disclosed in Note 5.

(a) Consolidated interim financial information

The consolidated interim financial information has been prepared and has been presented inaccordance with the pronouncement issued by the Accounting Pronouncements Committee (CPC 21- R1), interim statements, equal to International Financial Reporting Standards (IAS 34).

The presentation of the individual and consolidated Statement of Value Added (DVA) is required byBrazilian corporate legislation and the accounting practices adopted in Brazil that apply to listedcompanies.

(b) Individual interim financial information

The Parent company's individual interim financial statements have been prepared in accordancewith CPC 21 (R1) - Interim Statements issued by the Accounting Pronouncements Committee("CPC") and are being published in conjunction with the consolidated financial statements.

In the individual interim financial statements subsidiaries are accounted for by the equity methodadjusted to the proportion held in the Group's contractual rights and obligations. The accountingpractices adopted in Brazil applicable to the individual financial information differ from IFRSapplicable to the separate financial statements only in relation to the measurement of investments insubsidiaries, joint ventures and associated companies based on the equity accounting method, whilethis is based on cost or fair value under IFRS.

For the purpose of BR GAAP, Law 11941/09 abolished deferred assets, permitting the maintenanceof the balance accumulated up to December 31, 2008, which may be amortized in up to 10 years,subject to impairment tests. Following the adoption of IFRS, the Company recorded the amount ofR$ 26,192 in the consolidated accumulated losses, net of tax as of January 1, 2009, corresponding toits and its subsidiaries' deferred charges at that date. The difference between the individual andconsolidated shareholders' equity is therefore related to the deferred asset which was recognized inaccumulated losses in the consolidated shareholders' equity.



24

The table below shows the reconciliation between the individual and consolidated shareholders'equities at March 31, 2014:

2014

Shareholders' equity - Parent Company 2,401,485Deferred charges - Law 11941/09 (14,861 )

Shareholders' equity - Attributable to controlling shareholders 2,386,624

The Board of Directors authorized the issuance of these financial statements on May 12, 2014.

4 Significant accounting policies

The accounting policies applied to prepare this interim account information are the same as thoseused to prepare the audited financial statements for the financial year ended December 31, 2013.

5 Critical Accounting Estimates and Judgments

Estimates and judgments are continually evaluated and are based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under thecircumstances. The critical estimates and judgments used in the accounting information are thesame as those used in the audited financial statements for the year ended December 31, 2013.

6 Cash and cash equivalents

Parent company Consolidated

March 31,2014

December31, 2013

March 31,2014

December31, 2013

Cash and bank deposits 312 396 57,270 16,493Fundo de Investimento MM MPX 63 (a) 19,382 109,647 30,692 202,444CDB/Purchase and Sale Agreements (b) 113 8,838 58,645

19,694 110,156 96,800 277,582

(a) Substantially consist of quotas in investment funds, of high liquidity, readily convertible into aknown amount of cash, regardless of asset maturity, and are subject to an insignificant risk of achange in value. This is a share investment fund FI Multimercado Crédito Privado MPX 63administrated by Banco Itaú and primarily backed by Bank Deposit Certificates - CDBs andsecurities subject to repurchase agreements issued by first-rate financial institutions andcompanies, all linked to floating rates and with an average yield of 100.91% (nominal rate on thecurve) of the DI CETIP rate (Interbank Deposit Certificate - CDI). Securities held underrepurchase agreements underlied by debentures represent purchase and sale commitments,registered at CETIP or SELIC, when applicable, and with guarantee of repurchase at apreviously established rate from the financial institutions. A 100% of the portfolio consists ofsecurities held under repurchase agreements at March 31, 2014.



25

As required by CVM Instruction 408/05, the consolidated quarterly information includes thebalances and transactions of the exclusive investment funds, whose only shareholders are theCompany and its subsidiaries, as shown below:


March 31,2014

December31, 2013

March 31,2014

December31, 2013

Consolidated Multi-Market FundEneva S.A. 19,382 109,647 19,382 109,647Amapari Energia S.A. 4,247 9,349Seival Sul Mineração Ltda. 252 406Parnaíba Geração de Energia S.A. 808 27,905Parnaíba II Geração de Energia S.A. 6,003 55,137

19,382 109,647 30,692 202,444

(b) Amounts invested in CDBs issued by first-rate financial institutions. The companies that holdthese amounts are the subsidiaries Pecém II Geração de Energia S.A. and Itaqui Geração deEnergia S.A.

The exclusive funds are regularly reviewed/audited by independent auditors and are subject toconstraints on the payment of services rendered by the asset manager, attributed to operatinginvestments, such as custody and audits fees and other expenses. There are no materialfinancial obligations or Company assets to guarantee these obligations.

7 Secured deposits


March 31,2014

December31, 2013

March 31,2014

December31, 2013

BNDES - Porto do Pecém 39 38 39 38BNDES - Itaqui (a) 66,717 64,629BNDES - Pecém II (b) 20,092 19,682BNDES - Parnaíba (c) 41,864 34,044Others 69

39 38 128,712 118,644

Current 39 38 39 38Non-current 128,674 118,606

(a) Refers to the debt service reserve accounts linked to the financing agreement between thesubsidiary Itaqui Geração de Energia S.A , BNB-Banco do Nordeste do Brasil S.A. and BNDES.

(b) Refers to the debt service reserve accounts linked to the financing agreement between BNDES,BNB-Banco do Nordeste do Brasil S.A. and the subsidiary Pecem II Geração de Energia S.A.

(c) Refers to the debt service reserve accounts linked to the financing agreement between BNDESand the subsidiary Parnaíba Geração de Energia S.A.



26

8 Accounts receivable and fuel consumption account

Consolidated

2014 2013

Amapari Energia S.A. (a) 54,419 40,273Itaqui Geração de Energia S.A. (b) 81,051 85,026Parnaíba Geração de Energia S.A. (b) 153,437 110,113Parnaíba II Geração de Energia S.A. (b) 8,497 -Pecém II Geração de Energia S.A. (b) 94,235 89,786

391,639 325,198

Current 391,639 325,198Non-current

(a) The accounts receivable is for energy sold to Zamim Ferrous of R$ 7,482 (R$ 9,472 at December31, 2013) and the balance receivable of the subsidiary is R$ 46,935 (R$ 30,802 at December 31,2013), as described below.

At March 31, 2014 the balance receivable of the subsidiary is R$ 46,935 (R$ 30,802 atDecember 31, 2013). This amount reflects the 7-month subsidy due to the delay to pass throughthe subsidy to the Company. At December 31, 2013 subsidies for 4 months had been recorded.

The Company's non-current assets include the CCC reimbursement not received for the periodNovember 2008 to May 2009 of R$ 24,617 thousand. If this amount is not received, theCompany is entitled to charge Anglo Ferrous Amapá Ltda. for it. This is because, under theenergy supply agreement between the parties, in the event of an economic/financial unbalancefor reasons not attributable to the Company, the parties shall adjust the contractual terms torestore the economic and financial equilibrium. However, to date collection procedures againstAnglo Ferrous Amapá Ltda. have not commenced, as the Company initially decided to adoptjudicial measures before ANEEL in an attempt to obtain this reimbursement via the CCCmechanism. At March 31, 2014 the amount had been completely provided for.

(b) The balance denotes the accounts receivable of the subsidiaries Itaqui Geração de Energia S.Aunder the electricity purchase contract in a regulated environment (CCEAR), signed withANEEL, of R$ 81,051 (R$ 85,026 at December 31, 2013) and the companies that came intooperation in 2013 Parnaíba Geração de Energia S.A. of R$ 153,437 (R$ 110,113 at December 31,2013) and Pecém II Geração de Energia S.A. of R$ 94,235 (R$ 89,786 at December 31, 2013),also under the CCEAR with ANEEL. The subsidiary Parnaíba II Geração de Energia R$ 8,497referring to the sale of energy in the free market.



27

9 Inventories

Consolidated

March 31,2014

December31, 2013

Diesel oil/lubricant (a) 6,426 12,685Coal (b) 48,769 49,070Electronic and mechanical parts (c) 23,150 16,621

78,345 78,376

(a) The balance consists of the reservoirs of diesel oil and lubricating oil used as consumables inelectricity generation by the subsidiaries Amapari Energia S.A.(R$ 4,804), Pecém II Geração deEnergia S.A. (R$ 1,055) and Itaqui Geração de Energia S.A. (R$ 567). The subsidiary AmapariEnergia S.A. has a contractual acquisition obligation ("take or pay") with BR Distribuidora S.A.,to acquire a minimum 3,600 m³ of diesel oil a month, for a fixed price or to pay for this even ifit is not taken. If the obligation is exercised, this results in the acquisition of the diesel oil usedas a consumable by the Company. The Company recorded a provision under trade payables forthe difference between the amount required and the minimum mandatory amount under thecontract, charged to inventory. At March 31, 2014 the balance of this provision is R$ 3,615(R$ 8,481 at December 31, 2013), as under the agreement between the parties the recognizedconsumption of diesel changed to 35,000 m³, down from the remaining take or pay of 61,000m³ under the previous contract.

(b) The balance consists of the inventory of coal used as a consumable in electricity generation bythe subsidiaries Itaqui Geração de Energia S.A. (R$ 19,359) and Pecém II Geração de EnergiaS.A. (R$ 29,410). The coal was acquired for the commissioning phase of the operation, and toestablish a safety inventory at the plant, with a view to the commercial operations. Note thatPorto do Itaqui initiated its commercial operations, consuming coal inventories.

(c) The balance consists of electronic and mechanical parts for use and replacement in themaintenance operations carried out by the subsidiaries: Amapari Energia S.A. (R$ 3,119), ItaquiGeração de Energia S.A. (R$ 8,736), Pecém II Geração de Energia S.A. (R$ 3,774), ParnaíbaGeração de Energia S.A. (R$ 7,072) and Parnaíba II Geração de Energia S.A. (R$ 449).



28

10 Recoverable and deferred taxes

The balance of recoverable taxes is as follows:


March 31,2014

December31, 2013

March 31,2014

December31, 2013

Income tax withheld at source (b) 3,894 3,533 12,648 12,161Prepaid income tax 4,319 3,687Prepaid social contributions 3,065 2,857Prepaid social contributions -

previous year (a) 462 462 464 464Income tax withheld at source -

previous year (b) 12,537 13,948 13,696 14,539Income tax withheld at source -

loan (b) 17,486 13,728 17,485 13,727ICMS 10 6,687 1,994PIS 1,486 1,727COFINS 1 1 6,846 7,956Others 1,101 1,244 3,632 3,153

35,491 32,916 70,328 62,265

Current 28,248 25,701 55,950 47,651Non-current 7,243 7,215 14,378 14,614

(a) Refers to income and social contribution taxes prepaid in the course of the year and previousyears, which will be offset against the income and social contribution taxes determined on thetaxable income.

(b) The balance of income tax withheld at source refers to amounts withheld on interest-earningbank deposits and related-party loans. These balances will be offset against the income andsocial contribution taxes payable.

Deferred taxes

Deferred income and social contribution taxes reflect future tax effects attributable to temporarydifferences between the tax bases of assets and liabilities and their carrying values.

The deferred tax was maintained at the subsidiaries due to the expectations of generating futuretaxable income, determined by a technical valuation approved by Management. The carrying value ofthe deferred tax asset is reviewed periodically and the projections are reviewed annually. If there aresignificant factors that change the projections, they are also reviewed by the Company during theyear.



29

The Company and its subsidiaries adopted the Transitional Taxation Scheme (RTT) so that theamendments introduced by Law 11638 of December 28, 2007 and Articles 37 and 38 of Law 11941 of2009, which changed the procedure for recognizing revenue, costs and expenses used to calculatethe net income for the year defined in Art. 191 of Law 6404 of December 15, 1976, do not affect thecalculation of the taxable income and social contribution calculation base of companies that opt forthe Transitional Taxation Scheme - RTT. For tax purposes the accounting methods and criteria inforce at December 31, 2007 should be used.

The Company and its subsidiaries will not elect the option provided in MP 627, and we believe it willnot make any fiscal amendment to be adjusted in the financial statements.

The origin of the deferred income and social contribution taxes is presented below:


March 31,2014

December31, 2013

March 31,2014

December31, 2013

Non-current deferred chargesTax loss carryforwards and negative tax base 304,077 302,327

304,077 302,327

Non-current deferred liabilitiesTemporary differences - RTT 12,444 9,591

Breakdown of deferred tax by company:

March 31,2014

December 31,2013

Parent CompanyPecém II 86,065 85,708Itaqui 192,127 192,127Amapari 1,195 1,783Parnaíba 14,813 14,006Parnaíba II 9,876 8,703

Tax loss carryforwards and negative tax base 304,077 302,327



30

At March 31, 2014 and 2013 the taxes calculated on the adjusted net income consisted of IRPJ (rateof 15% and surcharge of 10%) and CSLL (rate of 9%). The reconciliation between the tax expense ascalculated by the combined statutory rates and the income and social contribution tax expensecharged to net income is presented below:

(*) Refers essentially to (i) the portion of deferred taxes of subsidiaries which was not recorded, asthere is no study demonstrating the realization thereof.

(**) Primarily consists of the transaction differences between companies of the same group. Thesetransactions are eliminated for consolidation purposes.

2013

ParentCompany Consolidated

Net income for the period before IRPJ/CSLL (250,901 ) (317,868 )Statutory rate - % 34 34

IRPJ/CSLL at the nominal rate (85,306 ) (108,075 )

Tax asset not recorded (*) 85,306 47,147Permanent differences (***) 121

Income tax and social contribution expense, current

Deferred income and social contribution taxes 60,807

Total tax 60,807

Effective rate - % (13.82 ) (19.13 )

(***) Essentially consists of non-deductible fines for taxable income purposes.

2014

ParentCompany Consolidated

Net income for the period before IRPJ/CSLL (71,931 ) (66,728 )Statutory rate - % 34 34

IRPJ/CSLL at the nominal rate (24,456 ) (22,688 )

Consolidated differences (**) 15,032Tax asset not recorded (*) 24,456 11,493Provision for impairment of tax credit (a)

Income tax and social contribution expense, current 2,733

Deferred income and social contribution taxes 1,104

Total tax 3,837

Effective rate - % (5.75 )



31

Based on the estimated generation of future taxable earnings, by way of its subsidiaries the Companyexpects to recover these tax credits from FY 2015 onwards, as shown below:

2015 2016 2017 2018 2019 2020 2021 2022 2023 Total

Expected annualrealization

of deferredtaxes 20,355 23,326 24,236 22,527 38,407 57,034 43,057 55,220 7,469 291,631

The expected recoverability of the tax credits is based on the projection of future taxable incometaking into consideration business and financial assumptions at year end. Accordingly, theseestimates may differ from the effective taxable income in the future due to the inherent uncertaintiesinvolving these estimates.

11 Investments

(a) Composition of balances


March 31,2014

December31, 2013

March 31,2014

December31, 2013

Equity interests 3,258,301 3,130,881 957,236 941,758Other investments 95 95 95 95

3,258,396 3,130,977 957,331 941,853

(b) Equity interests

The Company's equity interests include the subsidiaries, joint ventures and associates. The balancesof the main account groups of equity interests at December 31, 2013 and December 31, 2012 are:

March 31 ,2014

Equity interests

Equityinterest in

%Current

assets

Non-current

assetsCurrent

liabilitiesNon-current

liabilitiesShareholders'

equity Net income

Porto do Pecém Geração de Energia S.A. 50.00 150,777 1,957,158 301,235 1,240,323 566,378 (15,022 )Pecém II Geração de Energia S.A. 100.00 151,812 2,028,991 210,936 1,339,437 630,430 (705 )Itaqui Geração de Energia S.A. 100.00 139,623 2,931,806 291,631 1,688,687 1,091,111 (28,492 )Amapari Energia S.A. 51.00 69,527 66,705 37,274 337 98,621 (1,028 )Porto do Açú Geração de Energia S.A. 50.00 3,724 25,660 3,033 2,049 24,301 (399 )Seival Sul Mineração Ltda. 70.00 308 4,848 10 5,146 (166 )Sul Geração de Energia Ltda. 50.00 17 6,967 10 415 6,559 (24 )Termopantanal Participações Ltda. 66.67 9 400 (4 ) 2,726 (2,313 ) (0 )Parnaíba Geração de Energia Ltda. 70.00 204,652 1,247,147 275,187 764,520 412,092 6,397Porto do Pecém Transportadora de

Minérios S.A. 50.00 1,050 28 310 768 319OGMP Transporte Aérieo Ltda. 50.00 188 63 251 2PO&M - Pecém Operação e Manutenção

de Geração Elétrica S.A. 50.00 1,502 365 1,186 (49 ) (256 )Seival Participações S.A. 50.00 13 31,018 1 11,311 19,720 74Parnaíba II Geração de Energia S.A. 100.00 23,900 1,212,929 611,082 299,869 325,877 (2,285 )ENEVA Participações S.A. 50.00 50,726 175,087 69,198 30,062 126,553 (2,273 )Açú II Geração de Energia S.A. 50.00 129 2,396 6 188 2,330 (1 )Parnaíba Participações S.A. 50.00 63,735 273,762 85,665 105,649 146,183 4,186Parnaíba V Geração de Energia S.A 99.99 1 1ENEVA Investimentos S.A. 99.99 2 11 (9 )ENEVA Desenvolvimento S.A. 99.99 7 303 10 495 (194 ) (5 )Tauá II Geração Energia Ltda. 100.00 6 477 (87 ) 44 526 (69 )MABE Construção e Administração de

Projetos Ltda. 50.00 28,756 23,119 40,057 11,789 29 (6,392 )



32

December 31, 2013

Equity inthe capital Current

Non-current Current

Non-current Equity Net

Equity interests in % assets assets Liabilities liabilities net income

Porto do Pecém Geração de Energia S.A. 50.00% 290,867 3,906,638 548,838 2,487,934 1,160,732 (282,342 )Pecém II Geração de Energia S.A. 100.00% 170,228 2,029,084 221,660 1,346,518 631,134 (46,331 )Itaqui Geração de Energia S.A. 100.00% 153,100 2,924,724 285,496 1,724,724 1,067,603 (250,736 )Amapari Energia S.A. 51.00% 62,105 69,205 31,608 52 99,649 (3,619 )Porto do Açú Geração de Energia S.A. 50.00% 7,341 51,248 6,064 3,124 49,402 (4,296 )Seival Sul Mineração Ltda. 70.00% 477 4,840 22 5,295 (792 )Sul Geração de Energia Ltda. 50.00% 29 13,947 8 832 13,136 (521 )Termopantanal Participações Ltda. 66.67% 9 400 (4 ) 2,726 (2,313 ) (2 )Parnaíba Geração de Energia Ltda. 70.00% 158,288 1,264,731 265,826 768,997 388,195 152Porto do Pecém Transportadora de

Minérios S.A. 50.00% 1,274 98 474 899 222OGMP Transporte Aérieo Ltda. 50.00% 368 130 498 410PO&M - Pecém Operação e Manutenção

de Geração Elétrica S.A. 50.00% 3,263 491 2,357 415 (324 )Seival Participações S.A. 50.00% 30 61,695 6 22,469 39,251 (624 )Parnaíba II Geração de Energia S.A. 100.00% 62,301 1,163,940 594,757 303,322 328,163 (16,806 )Eneva Participações S.A. 50.00% 116,364 388,463 203,084 44,480 257,263 (26,952 )Porto do Açú II Geração de Energia S.A. 50.00% 259 4,782 12 367 4,662 (4 )Parnaíba Participações S.A. 50.00% 200,833 399,256 233,955 85,464 206,788 14,076Parnaíba V Geração de Energia S.A 99.99% 9 1 108 (100 ) (111 )Parnaíba Gas Natural S.A. 33.33% 258,196 1,100,395 1,134,315 68,572 155,704 12,640MPX Investimentos S.A. 99.99% 2 11 (9 ) (12 )MPX Desenvolvimento S.A. 99.99% 8 303 10 490 (189 ) (201 )MPX Tauá II Energia Solar Ltda. 100.00% 64 69 (506 ) 44 596 (230 )MABE Construção e Administração de

Projetos Ltda. 50.00% 55,866 48,871 69,331 35,378 28 (94,169 )

The balance of investments breaks down as follows:


Equity interestsMarch 31,

2014December 31,

2013March 31,

2014December 31,

2013

Porto do Pecém Geração de Energia S.A. 566,377 580,367 566,251 580,240Pecém II Geração de Energia S.A. 630,430 631,135Itaqui Geração de Energia S.A. 1,091,111 979,904Goodwill based on future profits 14,875 15,001Amapari Energia S.A. 50,297 50,821Porto do Açu Energia S.A. 24,301 24,701 16,987 17,386Seival Sul Mineração Ltda. 3,603 3,707Sul Geração Energia Ltda. 6,545 6,569 6,225 6,249Porto do Pecém Transportadora de Minérios S.A. 768 449 768 449Parnaíba Gás Natural S.A. (d). 79,761 51,899 79,761 51,899Parnaíba Geração de Energia Ltda.(b) 177,115 172,637OGMP Transporte Aéreo Ltda. (c) 102 277 102 277Pecém Operação e Manutenção de Unidades

de Geração Elétrica S.A. - PO&M (49 ) 207 (49 ) 207Seival Participações S.A. 19,699 19,625 19,699 19,625Parnaíba II Geração de Energia S.A. 325,877 328,162ENEVA Participações S.A. 95,553 97,685 95,553 97,685Açú II Geração de Energia S.A. 2,331 2,331 2,331 2,331Parnaíba V Geração de Energia S.AParnaíba Geração e Comercialização de Energia S.A.Parnaíba Participações S.A. 107,579 103,393 107,579 103,393ENEVA Investimentos S.A.Subscription premium 62,000 62,000 62,000 62,000MABE do Brasil 28 14 28 14Future acquisition of investment 95 95 95 95

3,258,396 3,130,976 957,331 941,852

(a) At March 31, 2014 the balance of the investment with the joint ventures and the subsidiariesMPX Chile Holding Ltda., ENEVA Desenvolvimento S.A. and Termopantanal ParticipaçõesLtda. was classified under unsecured liabilities in the non-current liabilities, due to the fact thatthese companies had negative equity.



33

(b) On August 14, 2013 the Extraordinary General Meeting approved the split-off of ParnaíbaGeração de Energia S.A. with the net assets being transferred to Parnaíba III Geração deEnergia S.A.. The split-off is a necessary step in the implementation of the venture andcommercial start-up of Parnaíba III, via the transfer of the 5th generator turbine, with a totalcapacity of 176.2 MW.

(c) The shareholders Eneva Energia S.A. and OGX Petróleo e Gás Participações S.A. approved thecapital decrease of the joint subsidiary OGMP Transporte Aéreo Ltda. on August 8, 2013.

(d) On October 30, 2013 the EGM approved the change of the associated company's name fromOGX Maranhão Petróleo e Gás S.A. to Parnaíba Gás Natural S.A. A capital increase of R$ 250million was concluded on February 19, 2014 at its associate Parnaíba Gás Natural S.A. Theincrease was fully subscribed and paid in by Cambuhy and E.ON, as announced in the pressrelease in October 2013. As a result of the capital increase, the interest held by ENEVA S.A.dropped from 33.33% to 18.18%.

See below the breakdown of the minority interest in the equity and net income of investees.

The balance of investments is as follows:

Attributed to minority interests

Investments EquityShareholders'

equity Net incomeEquity

net Result

Amapari Energia S.A. 51% 98,621 (1,028 ) 48,324 503Parnaíba I Gerão de

Energia 70% 412,092 6,397 75,906 (1,919 )Termopantanal

Participações 67% (2,313 ) (771 )Seival Sul Mineração 70% 5,146 165 1,543 49

125,002 (1,367 )



34

(c) Change in investment

March 31 ,2014

Direct subsidiaries %

Balance atDecember

31, 2013Capital

subscriptionEquity

income

Gain onincrease in

interestCapital

reductionExchange

variance

Equityappraisal

adjustment

Adjustmentin equityinterest Amortization

Balance atMarch

31, 2014

Porto do Pecém Geração de Energia S.A. 50.00 580,366 (15,148 ) 1,159 566,377Pecém II Geração de Energia S.A. 100.00 631,135 (705 ) 630,430Itaqui Geração de Energia S.A. 100.00 979,903 139,700 (28,492 ) 1,091,111Goodwill based on future profits 15,001 (126 ) 14,875Amapari Energia S.A. 51.00 50,821 (524 ) 50,297Porto do Açu Energia S.A. 50.00 24,701 (399 ) 24,301Seival Sul Mineração Ltda. 70.00 3,707 12 (116 ) 3,603Sul Geração de Energia Ltda. 50.00 6,569 (24 ) 6,545Porto do Pecém Transportadora deMinérios S.A. 50.00 449 319 768Parnaíba Gás Natural S.A. 33.30 51,899 6,003 21,858** 79,761Parnaíba Geração de Energia S.A. 70.00 172,637 4,478 177,115OGMP Transporte Aereo 50.00 277 2 (178 ) 102Pecém Operação e Manutenção deUnidades de Geração

Elétrica S.A. - PO&M 50.00 207 (256 ) (49 )Seival Participações S.A. 99.90 19,625 74 19,699Açu II Geração de Energia S.A. 50.00 2,331 (1 ) 2,331ENEVA Participações S.A. 50.00 97,685 (753 ) 96,932Subscription Premium 62,000 62,000Parnaíba Participações S.A. 50.00 103,393 4,186 107,579Parnaíba V Geração de Energia S.A. 99.99 -MABE do Brasil 50.00 14 14 28ENEVA Investimentos S.A. 99.99 -Parnaíba II Geração de Energia S.A. 100.00 328,162 (2,285 ) 325,877Future acquisition of investment 95 95

3,130,977 139,712 (40,558 ) (178 ) 1,159 21,858 (126 ) 3,258,396

Parent company

2013

Balance atDecember Paid in

Gain onincrease of Capital Exchange

Equityappraisal

Balance atDecember

Investment % 31, 2012 capital Equity income interest decresa variace adjustment Spin-off Amortization 31, 2013

Porto do Pecém Geração de Energia S.A. 50.00 611,561 98,600 (141,171 ) 11,379 580,366Pecém II Geração de Energia S.A. 100.00 449,104 227,400 (46,331 ) 961 631,134Itaqui Geração de Energia S.A. 100.00 551,549 694,560 (250,736 ) (469 ) 994,904Amapari Energia S.A. 51.00 52,872 (2,051 ) 50,821Porto do Açu Energia S.A. 50.00 27,251 4,850 (7,400 ) 24,701Seival Sul Mineração Ltda. 70.00 3,511 750 (554 ) 3,707Sul Geração de Energia Ltda. 50.00 6,599 230 (261 ) 6,568Porto do Pecém Transportadora de Minérios S.A. 50.00 338 - 111 449Parnaíba Gás Natural S.A. 33.30 31,861 15,825 4,213 51,899Parnaíba Geração de Energia S.A.* 70.00 231,101 33,600 106 (92,170 ) 172,637OGMP Transporte Aereo 50.00 6,823 250 205 (7,000 ) 278Pecém Operação e Manutenção de Unidades de Geração S.A.

Geração Elétrica S.A. - PO&M 50.00 367 (162 ) 207Seival Participações S.A. 99.90 19,365 573 (312 ) 19,626Açu II Energia S.A. 50.00 2,133 200 (2 ) 2,331ENEVA Participações S.A. 50.00 128,406 (15,074 ) 267 46,085 159,685Parnaíba Participações S.A. 50.00 6,917 43,355 7,036 46,085 103,393Parnaíba V Geração de Energia S.A. 99.99 1 (1)MABE do Brasil 50.00 14 14

Eneva Tauá II Energia Solar Ltda.100.00

% 1 (1)EnevaENEVA Investimentos S.A. 99.99Parnaíba II Geração de Energia S.A. 100.00 85,254 259,715 (16,806 ) 328,163Future acquisition of investment 95 95

2,215,107 1,379,922 (469,189 ) 961 (7,000 ) 267 11,379 (469 ) 3,130,978

(*) Denotes the effect of transferring the turbine from Parnaíba I to Parnaíba III.(**) The effect denotes the reduction in the percentage interest in the capital of its associate

Parnaíba Gás Natural S.A.



35

12 Property, plant and equipment


Consolidated

Property, plant and equipment in service

Land

Buildings,civil works

andimprovements

Machineryand

equipmentIT

Equipment Vehicles

Furnitureand

fixturesCost of

disassembly

PP&Ein

progress Total

Depreciation rate % p.a. 4 7 17 20 10

CostBalance at December 31, 2013 7,844 3,159,154 2,599,073 5,103 1,757 8,434 2,079 1,194,260 6,977,705

Balance at December 31, 2013 7,844 3,159,154 2,599,073 5,103 1,757 8,434 2,079 1,194,260 6,977,705Additions 1,374 188 108 279 60.187 62,136Write-offs (17 ) (17 )Transfers 19,822 (13,397 ) (6.453 ) (28 )

Balance at March 31, 2014 7,844 3,178,976 2,587,049 5,292 1,865 8,713 2,079 1,247,978 7,039,796

Depreciation

Balance at December 31, 2013 (68,448 ) (85,201 ) (1,711 ) (649 ) (2,244 ) (158,253

Balance at December 31, 2013 (68,448 ) (85,201 ) (1,711 ) (649 ) (2,244 ) (158,253Additions (21,900 ) (22,677 ) (22 ) (93 ) (207 ) (44,900Write-offsTransfers

Balance at March 31, 2014 (90,348 ) (107,879 ) (1,734 ) (742 ) (2,451 ) (203,153

Carrying amountBalance at December 31, 2013 7,844 3,090,707 2,513,872 3,392 1,108 6,189 2,079 1,194,260 6,819,452

Balance at March 31, 2014 7,844 3,088,628 2,479,171 3,558 1,123 6,262 2,079 1,247,978 6,836,643

2013

Land

Buildings,civil works

andimprovements

Machineryand

equipmentEquipment

IT Vehicles

Furnitureand

fixturesGas

pipeline

Provisionfor

impairmentloss

Dismantlingcost

Property,plant and

equipmentin progress Spin-off Total

Depreciation rate % p.a. 4 7 17 20 10

CostBalance at December 31, 2012 3,113 18,471 75,162 4,586 1,294 6,269 12,169 (12,169 ) 3,993 5,478,044 5,590,931

48,264Balance at December 31, 2012 3,113 18,471 75,162 4,586 1,294 6,269 12,169 (12,169 ) 3,993 5,478,044 5,590,931

Additions 40,522 33,767 485 584 1,865 (39 ) 1,441,983 (124,118 ) 1,395,050Write-offs (7,742 ) (1,241 ) (3 ) (120 ) (54 ) (9,160 )Transfers 4,732 3,107,904 2,491,383 35 354 (5,603,522 ) 885

Balance at December 31, 2013 7,845 3,159,154 2,599,071 5,104 1,757 8,434 12,169 (12,169 ) 3,954 1,316,505 (124,118 ) 6,977,706

DepreciationBalance at December 31, 2012 (1,496 ) (15,826 ) (1,280 ) (434 ) (1,500 ) (20,535 )

Balance at December 31, 2012 (1,496 ) (15,826 ) (1,280 ) (434 ) (1,500 ) (20,535 )Additions (67,470 ) (69,376 ) (432 ) (307 ) (749 ) (138,335 )Write-offs 518 93 6 616Transfers

Balance at December 31, 2013 (68,448 ) (85,202 ) (1,712 ) (649 ) (2,243 ) (158,254 )

Carrying amountBalance at December 31, 2012 3,113 16,975 59,336 3,306 860 4,769 12,169 (12,169 ) 3,993 5,478,044 5,570,399

Balance at December 31, 2013 7,845 3,090,707 2,513,869 3,392 1,109 6,190 12,169 (12,169 ) 3,954 1,316,505 (124,118 ) 6,819,454

Machinery and equipment

Basically relates to the UTEs Amapari Energia S.A., Itaqui, Parnaíba and Pecém II, which came intooperation in November 2008, February 2013, March 2013 and October 2013 respectively. Assetdepreciation is based on the concession term and calculated by the straight line method at the ratesdetermined by Normative Resolution 474 issued February 7, 2012 by the National Electric EnergyAgency - ANEEL. For the estimated portion of the investments made and not amortized ordepreciated by the end of the concession, a new depreciation or amortization rate is calculated andrecorded in income monthly, so that a value equal to zero is obtained at the end of the concession.



36

Buildings, Civil Works and Improvements

Basically relates to the UTEs Itaqui, Parnaíba and Pecém II, which came into operation in February2013, March 2013 and October 2013 respectively. Depreciation follows the same procedure andcriteria described in the item Machinery and equipment.

Land

On June 30, 2010 Parnaíba Geração de Energia S.A. acquired land to build the venture for R$ 3,113,which it recorded under land. Following the operational start-up of the Porto do Itaqui plant, wetransferred R$ 4,731 from property, plant and equipment in progress to property, plant andequipment in service. The amounts are recorded in accordance with Technical Pronouncement CPC27 - Property, Plant and Equipment.

Property, plant and equipment in progress

UTEs Parnaíba I and II signed with Duro Felguera do Brasil Desenvolvimento de Projetos Ltda. andInitec do Brasil Engenharia e Construções Ltda. respectively EPC agreements (Engineering,Procurement and Construction) in the form lump sum turn key to build the power stations.

The expenses incurred on advances made for reserves and equipment acquisitions to build thethermal power plants of the companies Pecém II Geração de Energia S.A., Itaqui Geração de EnergiaS.A. and Parnaíbas I and II are transferred to the respective accounts of property, plant andequipment in service, following the approval of the declaration of commercial operation (DCO). Thesubsidiaries, Pecém II Geração de Energia S.A., Itaqui Geração de Energia S.A, and MABEConstrução e Administração de Projetos Ltda. signed EPC agreements ("Engineering, Procurementand Construction") in the form lump sum turn key to build the power stations. As established in therespective agreements, 15% of each advance made will be withheld as a guarantee for delivery of thepower station, to be disbursed in the course of FY 2013, if MABE presents bank guarantees. It shouldbe noted that it is not known when this withheld portion of the advance will be applied in theconstruction of the plant. At March 31, 2014 the total guarantees retained by the subsidiaries amountto R$ 79,942 (R$ 84,789 at December 31, 2013) and have been recorded under the respectivesubsidiary's current liabilities and presented in the consolidated financial statements under"Contractual retentions".

The labor costs of workers directly allocated to the construction of the Parnaíba II plant, whichamounts to R$ 22,455 at March 31, 2014 (R$ 20,038 at December 31, 2013), is beingcapitalized.

In 2013 the Itaqui, Pecém II and part of the Parnaíba complex came into operation and thecorresponding amounts of property, plant and equipment in progress were transferred to therespective accounts of property, plant and equipment in service. At March 31, 2014 the remainingbalance of property, plant and equipment in progress primarily consists of the Parnaíba II project,which is forecast to come into operation in 2014.



37

At December 31, 2013 the costs of consolidated loans capitalized under the property, plant andequipment in progress amounted to R$ 20,122 (2013 - R$ 117,926), as follows:

Parnaíba II

Average rate in 2014 (p.a.) 10%Amounts capitalized in 2014 20,122Amounts capitalized in 2013 72,328

13 Intangible assets


Consolidated

Intangible assets in service

Computerprograms

andlicenses

Goodwill onacquisition of

investments

Concessionsand

CCEARsUsagerights

Intangibleassets inprogress Total

Amortization rate % p.a. 20 3.30 20Cost

Balance at December 31, 2013 22,023 15,470 183,448 10,498 6,089 222,058

Balance at December 31, 2013 22,023 15,470 183,448 10,498 6,089 222,058Additions 54 15,524Write-offsTransfers 28 28

Balance at March 31, 2014 6,635 15,470 183,448 10,498 6,089 237,610

Amortization

Balance at December 31, 2013 (3,081 ) (468 ) (5,129 ) (8,678 )

Balance at December 31, 2013 (3,081 ) (468 ) (5,129 ) (8,678 )Additions (291 ) (128 ) (3,017 ) (3,436 )

Balance at March 31, 2014 (3,372 ) (596 ) (8,146 ) (12,114 )

Carrying amountBalance at December 31, 2013 18,943 (468 ) 178,319 10,498 6,089 213,381

Balance at March 31, 2014 3,264 14,874 175,302 10,498 6,089 210,026



38

2013

Computerprograms

andlicenses

Goodwill oninvestments

Concessionsand CCEARs

Usagerights

Intangibleassets

In progress Total

Amortization rate % p.a. 20 3.3 20

CostBalance at December 31, 2012 5,215 15,470 183,448 12,900 167 201,730

Balance at December 31, 2012 5,215 15,470 183,448 12,900 167 201,730Additions 5,224 251 270 21,214Write-offsTransfers 6,613 (7,061 ) (436 ) (885 )

Balance at December 31, 2013 17,053 15,470 183,448 6,089 222,059

AmortizationBalance at December 31, 2012 (1,965 ) (1,965 )

Balance at December 31, 2012 (1,965 ) (1,965 )Additions (6,244 ) (469 ) (6,713 )Write-offsTransfers

Balance at December 31, 2013 (8,209 ) (469 ) (8,677 )

Carrying amountBalance at December 31, 2012 3,251 15,470 183,448 12,861 166 215,236

Balance at December 31, 2013 8,843 15,001 183,448 6,089 213,381

(b) Goodwill on investments

On October 14, 2008 Eneva S.A. acquired the entire capital of Itaqui Geração de Energia S.A. fromEDP Energias do Brasil S.A. in an acquisition that involved the swap of a 50% interest in Porto doPecém Geração de Energia S.A. for said capital. This transaction generated goodwill for Eneva S.A. ofR$ 15,470, which is being presented under investments in the parent company's financial statementsand under intangible assets in the consolidated financial statements. This goodwill is based on theexpected future yield and is amortized over the term established in Ordinance authorization 177issued May 12, 2008.

(c) Intangible asset in progress

Basically refers to the easement for the water collection system installation for the thermal powerplant Parnaíba II.

14 Related parties

The main balances of assets and liabilities at March 31, 2014 and December 31, 2013 related torelated-party transactions, as well as the transactions that influenced the income for the period,relate to transactions between the Company and its direct and indirect subsidiaries, affiliates and keymanagement personnel, which were conducted in accordance with the terms agreed by the parties.



39

(a) Controlling shareholder

The Company's control is jointly exercised by Mr. Eike Fuhrken Batista and DD Brazil HoldingsS.À.R.L (fully controlled by E.ON AG), which respectively hold 23.9% and 37.9% of the commonshares.

(b) Managers

The Company is managed by a Board of Directors and an Executive Board, pursuant to the dutiesand powers vested by its Bylaws in accordance with corporate law.

(c) Related companies

The Company's main affiliated companies are: EBX Holding Ltda., E.ON AG, Óleo e GásParticipações S.A., Prumo Logística S.A., MMX Mineração e Metálicos S.A., OSX Brasil S.A., OMXOperações Marítimas Ltda., CCX Brasil Participações S.A., MMX Chile S.A., LLX Açú OperaçõesPortuárias S.A. and AVX Táxi Aéreo Ltda., in addition to its subsidiaries and associated companies.

The balances of assets, liabilities and effects on income of related-party transactions are as follows:

Assets


March 31,2014

December 31,2013

March 31,2014

December 31,2013

Pecém II Geração de Energia S.A. (c) 331,689 324,216Termopantanal Ltda. (a) 7,683 7,683Termopantanal Ltda. (a) (7,453 ) (7,453 )Termopantanal Participações Ltda. (a) 457 457ENEVA Comercializadora de Energia S.A. (e) 772 653 26,158 14,387Parnaíba Geração de Energia S.A. (f) 5,523 5,159Itaqui Geração de Energia S.A. (g) 414,066 404,621Sul Geração de Energia S.A. (m) 197 181 197 181Porto do Açú Energia S.A. (m) 248 241 248 241Parnaíba II Geração de Energia S.A. (j) 3,398 2,977ENEVA Comercializadora de Combustível Ltda. (m) 355 327 355 327Seival Participações S.A. (m)EBX Holding Ltda. (b) 12,542 12,542 12,542 12,542Pecém Operação e Manutenção Elétrica S.A. (j) 1,582 1,547 1,582 1,547ENEVA Participações S.A. (n) 7,727 5,341 7,727 5,341Porto do Pecém Geração de Energia S.A. (k) 262,257 258,749 263,763 260,268ENEVA Desenvolvimento (l) 348 346Seival Sul Mineração Ltda. (m) 10 10Parnaíba Participações S.A. (m) 1,063 1,131 1,063 1,131ENEVA Investimentos S.A. (m) 11 11Parnaíba V Geração de Energia S.A. (m) 119Tauá II Geração de Energia Ltda. 44 44Parnaíba III Geração de Energia S.A.Parnaíba IV Geração de Energia S.A. (q) 64,879 14,219 64,879 14,219Parnaíba Gás Natural S.A. (p) 204,794 1,344 206,138MABE da BrasilA. 11,786 11,559 11,786 11,559Seival Geração de Energia S.A. 161 195 161 195Advances for future capital

increases for subsidiaries (h) 136,295 206,678 185 150

1,255,640 1,456,347 391,990 528,227

Non-current 1,255,640 1,456,347 391,990 528,227



40

Liabilities


March 31,2014

December 31,2013

March 31,2014

December 31,2013

EBX Holding Ltda. (b) 2,772 2,772 5,598 2,824ENEVA Comercializadora de Energia Ltda. (e) 81 81 98,288 138,478Copelmi Mineração Ltda. (d) 147 158Porto do Pecém Geração de Energia S.A. (k) 1,904 2,502ENEVA Comercializadora de Combustíveis Ltda. (m)ENEVA Participações S.A. (n) 5,035 3,919 5,035 3,919Tauá Geração de Energia Ltda. 444 444 444 444Porto do Pecém Transportadora e Minérios S.A. 218 70Petra Energia S.A.(o) 90,910 80,781Parnaíba Gás Natural S.A.(p) 274 274 49,650 45,128Parnaíba Participações S.A. 28,094 27,000 280.94 27,000DD Brazil 6,416 6,416

36,700 34,489 286,705 307,720

CurrentNon-current 36,700 34,489 286,705 307,720

Net income


March 31,2014

December 31,2013

March 31,2014

December 31,2013

EBX Holding Ltda. (b) (4,249) (6 ) (4,981 )Pecem II Geração de Energia S.A. (c) 8,592 433 433ENEVA Comercializadora de Energia S.A. (e) 46 52 15,455 52Parnaíba Geração de Energia S.A. (f) 265 403 (361 )Itaqui Geração de Energia S.A. (g) 10,704 6,860 1,939MPX Sul Energia S.A. (m) 8 60 8 60Porto do Açú Energia S.A. (m) (1 ) 64 (1 ) 64ENEVA Solar Empreendimentos Ltda.ENEVA Comercializadora de Combustível Ltda. (m) 4 9 4 9Seival Participações S.A. (m) (34 ) (13) (34 ) (13 )Pecém Operação e Manutenção Elétrica S.A. (i) 42 26 42 (2,211 )Parnaíba II Geração (j) 310 310 (341 )Parnaíba Participações (m) 148 6 6ENEVA Participações S.A. (n) 514 478 514 478Porto do Pecém Geração de Energia S.A. (k) 4,201 2,608 4,201 2,608ENEVA Desenvolvimento S.A. (l) 3 61Parnaíba III Geração de Energia S.A. (m) (986 ) (986 )Parnaíba V Geração de Energia S.A. (m) 101 64 101 64MABE Construção e Administração de Projetos Ltda. (m) 293 45 (4,795 ) 45ENEVA Investimentos S.A. (m) 11 11Copelmi Mineração Ltda. (d) (18 )Parnaíba IV Geração de Energia S.A. (q) 1,917 1,917Petra Energia S.A. (o) 76,658Seival Sul Mineração 3Parnaíba Gás Natural S.A. (p) (8,421 ) 59,098

17,706 7,231 152,176 (2,156 )

(a) Loan agreement executed with Eneva S.A. (lender) subject to monthly interest (101% of CDI)and with an unfixed term of maturity. Eneva S.A. has made a provision of R$ 7,453 for thedevaluation of its 66.67% investment in Termopantanal Participações Ltda.



41

(b) The Company and its subsidiaries also maintain agreements for sharing costs of operating andfinancial activities entered into with the company EBX Holding Ltda. involving monthlycollections made through trade notes paid according to understandings between the parties.The effect on net income at March 31, 2014 is R$ (6) (R$ (4,981) at March 31, 2013).

(c) Revenue from reimbursement of operational, financial and project implementation costs. AtMarch 31, 2013 the effect on net income is R$ 433.

(d) Reimbursement of administrative costs related to the 30% interest held by Copelmi MineraçãoLtda. in the share capital of Seival Sul Mineração, with an effect on net income of R$ 18 atMarch 31, 2013.

(e) The balance consists of operational and financial cost sharing agreements with Eneva S.A.,Itaqui Geração de Energia S.A., Parnaíba II Geração de Energia S.A. and Pecém II Geração deEnergia S.A., involving monthly collections made through trade notes paid according tounderstandings between the parties (average DPO of 30 to 60 days). At March 31, 2014 theeffect on net income is R$ 15,455.

(f) The balance consists of revenue from reimbursement of feasibility study costs. At March 31,2013 the effect on net income is R$ (361).

(g) The balance consists of revenue from reimbursement of operating and finance activities andproject implementation costs; at March 31, 2013 the effect on net income is R$ 1,939.

(h) Balance consisting of advances for future capital increase (AFACs) of its subsidiaries frominvestments to non-current assets, which are irrevocable and irreversible. However, no fixedvalue has been defined for the number of shares in the capital increase, in contravention of CPC38. The following AFACs are outstanding at March 31, 2014 with the following companies:

SubsidiaryMarch 31,

2014December 31,

2013

MPX Sul Energia S.A. 15MPX Seival Participações S.A. 20Parnaíba Geração de Energia S.A. 135,500 118,000Parnaíba V Geração de Energia S.A. 10Itaqui Geração de Energia S.A. 87,700Parnaíba Participações S.A.Pecém II Geração de Energia S.A.ENEVA Investimentos S.A. 3OGMP Transporte Aéreo Ltda. 150 150Tauá II Geração de Energia Ltda. 610 815

136,295 206,678

(i) The balance consists of: (i) loan agreement executed in December 2011 with Eneva S.A. (lender)subject to monthly interest (110% of CDI) and with a fixed term of maturity on December 31,2013. At March 31, 2014 the effect on net income is R$ 42.

(j) Revenue from reimbursement of operational, financial and project implementation costs. AtMarch 31, 2013 the effect on net income is R$ (341).



42

(k) Loan agreement made on September 24, 2012 with Eneva S.A. (lender) subject to monthlyinterest (105% of CDI) and with a term of maturity of 1 (one) day after full repayment of loan bylender. The company determined revenue balance at March 31, 2014 of R$ 4,201.

(l) The balance consists of (i) revenue from reimbursement of project management costs; at March31, 2014 the effect on net income is R$ 3.

(m) Revenue from reimbursement of project implementation costs.

(n) Revenue from reimbursement of project implementation costs. At March 31, 2014 the effect onnet income is R$ 514.

(o) The balance consists of: (i) costs relating to the gas purchase agreement and leasing of the gastreatment plant's capacity, between Parnaíba and Petra. The effect on net income is R$ 28,937and (ii) Advance for future capital increase of R$ 47,721 between Petra and Parnaíba.

(p) The balance consists of: (i) costs relating to the gas purchase agreement and leasing of the gastreatment plant's capacity, between Parnaíba Gás Natural and Parnaíba Geração. The effect onnet income is R$ 67,519 and (ii) income from interest charged on the outstanding receivables,financial progress achieved regarding Parnaíba Gas Natural of R$ 8,421. Additionaly, weemphasize that this accounts receivable was fully settled in March 2014.

(q) On January 29, 2014 a loan agreement was entered into with the Geneva Preview SA (lender),subject to monthly interest (125% of the CDI) and with a maturity of one (1) day after the fullpayment of the total contract value. Geneva Preview additionaly recorded revenue forreimbursement of costs related to implementation of this project, in March 2014 the effect onnet income is $ 1.9 million.

(d) Compensation of the Board of Directors andExecutive Board members

In accordance with Law 6404/1976 and the Company's bylaws, the shareholders will establish themanagers' overall annual remuneration at the General Meeting. The Board of Directors willdistribute the amount among the directors.

The annual compensation of officers and the Board of Directors is presented below:


March 31,2014

December 31,2013

March 31,2014

December 31,2013

Immediate benefitsSalaries 1,652 1,371 2,366 2,303

1,652 1,371 2,366 2,303

See below the minimum, average and maximum individual annual compensation of the Board ofDirectors and Officers, in R$:

Consolidated

March 31, 2014 December 31, 2013

Minimum Average Maximum Minimum Average Maximum

Board of Directors 20,000 25,000 40,000 15,000 33,864 45,000Officers 775,175 1,127,379 1,807,836 92,603 191,951 365,520



43

15 Loans and financing

At March 31, 2011 and December 31, 2013 the loans taken out from financial institutions break down as follows:

Consolidated


Effective Transaction Unappropriated Transaction UnappropriatedCompany Creditor Currency Interest rates Maturity rate cost cost Principal Interest Total cost cost Principal Interest Total

Itaqui BNDES (Direct) (a) R$ TJLP+2.78% 15/06/26 2.89% 11,182 9,759 813,670 2,365 806,276 11,182 9,913 830,630 2,586 823,304Itaqui BNB (b) R$ 10,00% 15/12/26 10.14% 2,892 2,699 201,668 856 199,825 2,892 2,727 201,977 857 200,107Itaqui BNDES (Indirect) (c) R$ IPCA + TR BNDES + 4.8% 15/06/26 4.94% 2,023 1,937 111,744 9,603 119,411 1,475 1,473 109,302 6,041 113,870Itaqui BNDES (Indirect) (d) R$ TJLP+4.8% 15/06/26 4.94% 1,475 1,473 158,811 578 157,917 2,023 1,953 162,052 632 160,731Pecém II BNDES (Direct) (e) R$ TJLP+2.18% 15/06/27 2.30% 7,256 6,583 697,140 1,881 692,439 7,803 6,091 710,327 2,054 706,290Pecém II BNDES (Direct) (f) R$ IPCA + TR BNDES + 2.18% 15/06/27 2.32% 1,611 1,165 134,548 47,948 181,330 1,740 1,294 131,607 42,840 173,153Pecém II BNB (g) R$ 10,00% 31/01/28 10.17% 4,287 4,235 248,875 244,640 4,287 3,620 250,000 4,070 250,450Parnaíba I BRADESCO (h) R$ CDI +3.00% 18/12/14 36,000 93 36,093 4,593 48,000 117 48,117Parnaíba I Banco Itaú BBA (i) R$ CDI +3.00% 15/04/15 60,670 2,716 63,386 11,516 60,670 776 61,446Parnaíba I BNDES (Direct) (j) R$ TJLP+1.88% 15/06/27 2.21% 20,192 20,176 484,306 1,727 465,857 16,867 16,860 493,444 1,370 477,954Parnaíba I BNDES (Direct) (k) R$ IPCA + TR BNDES + 1.88% 15/07/26 2.23% 8,323 7,880 220,815 13,361 226,296 6,953 6,663 215,988 10,408 219,733Parnaíba II Banco Itaú BBA (l) R$ CDI +3.00% 30/12/14 200,000 6,418 206,418 200,000 146 200,146Parnaíba II CEF (m) R$ CDI +3.00% 30/12/14 280,000 9,077 289,077 280,000 286 280,286Parnaíba II BNDES (n) R$ TJLP+2.40% 15/06/15 3.39% 5,403 4,569 283,610 2,372 281,413 3,619 3,619 280,700 223 277,304ENEVA S.A. Banco Itaú BBA (o) R$ CDI +2.65% 16/12/14 105,790 3,743 109,534 105,790 503 106,293ENEVA S.A. Banco Citibank (p) R$ CDI +2.95% 22/09/14 101,250 6,410 107,660 101,250 3,107 104,357ENEVA S.A. Banco Citibank (q) USD LIBOR 3M + 1.26% 27/09/17 113,150 19 113,169 117,130 20 117,150ENEVA S.A. Banco BTG Pactual (r) R$ CDI +3.75% 09/12/14 101,912 836 102,748 101,912 792 102,705ENEVA S.A. Banco BTG Pactual (s) R$ CDI +3.75% 09/06/15 350,000 2,871 352,871 350,000 2,559 352,559ENEVA S.A. Banco BTG Pactual (t) R$ CDI +3.75% 09/12/14 370,000 3,035 373,035 370,000 1,196 371,196ENEVA S.A. Banco HSBC (u) R$ CDI +2.75% 12/12/14 303,825 11,138 314,962 303,825 1,747 305,572ENEVA S.A. Banco Citibank (v) R$ CDI +4.00% 03/11/14 42,000 886 42,886 42,000 879 42,879ENEVA S.A. Banco Citibank (w) R$ CDI +4.00% 09/12/14 100,000 4,194 104,194 100,000 792 100,792ENEVA S.A. Banco Itaú BBA (x) R$ CDI +2.65% 05/12/14 200,000 7,765 207,765 200,000 1,618 201,618ENEVA S.A. Banco Itaú BBA (y) R$ CDI +2.65% 09/12/14 210,000 7,947 217,947 210,000 1,499 211,499ENEVA S.A. Banco Santander (z) R$ CDI+3.25-4.25% 15/01/15 66,667 336 67,003ENEVA S.A. Morgan Stanley (aa) R$ CDI+3.25-4.25% 15/01/15 66,667 336 67,003ENEVA S.A. Banco Itaú BBA (bb) R$ CDI+3.25-4.25% 15/01/15 66,667 336 67,003ENEVA S.A. Banco Itaú BBA (cc) R$ CDI +3.15% 19/01/16 80,000 1,712 81,712

64,644 60,476 6,009,784 149,552 6,098,861 74,950 54,213 6,176,605 88,129 6,210,520

Unappropriatedcost Principal Interest Total


Current 5,648 2,335,901 147,843 2,478,096 6,984 1,716,403 110,555 1,819,974Non-current 54,830 3,673,883 1,712 3,620,765 32,409 3,111,363 25,852 3,104,806



44

The table below shows the breakdown of the loans of the joint subsidiary Porto do Pecém Geração de Energia S.A. and the indirect subsidiaries MPX ChileHolding Ltda., Parnaíba III Geração de Energia S.A and Parnaíba IV Geração de Energia S.A.. As a result of the new consolidation rules introduced by IFRS11, from 2013 we are no longer obliged to present them in the financial statements:

Consolidated


Interest Effective Transaction Unappropriated Transaction UnappropriatedCompany Creditor Currency rates Maturity rate cost cost Principal Interest Total cost cost Principal Interest Total

Pecém I (50%) BNDES (Direct) (gg) R$ TJLP + 2.77% 15/06/26 TJLP + 3.09% 8.461 4.653 725.640 2.115 723.102 8.461 4.844 740.449 2.312 737.917Pecém I (50%) IDB (hh) USD LIBOR + 3.50% 15/05/26 Libor + 4.67% 8.829 5.396 152.768 2.225 149.598 8.808 5.296 158.142 779 153.625Pecém I (50%) IDB (ii) USD LIBOR + 3.00% 15/05/22 Libor + 4.16% 8.965 4.841 178.236 2.259 175.655 8.939 5.374 184.506 791 179.924Chile (50%) Banco Credit Suisse (jj) USD 8,125% 15/04/15 10.184 384 10.568 10.519 183 10.701Chile (50%) Banco Credit Suisse (kk) USD 8,000% 15/04/15 6.789 252 7.041 7.013 120 7.134Parnaíba IV (35%) Banco BTG Pactual (ll) R$ CDI + 2.28% 29/01/14 24.500 1.796 26.296Parnaíba III (35%) Banco Bradesco (mm) R$ CDI + 2.53% 30/07/14 3,22% 664 381 42.000 836 42.455 42.000 493 42.493

26.919 15.271 1.115.618 8.071 1.108.418 26.208 15.514 1.167.129 6.474 1.158.089



Current 2.448 109.892 8.071 115.515 2.481 160.876 6.475 164.870Non-current 12.823 1.005.726 - 992.903 13.033 1.006.253 - 993.219

45

Porto do Itaqui Geração de Energia SA (Itaqui)

(a) The National Social and Economic Development Bank ("BNDES") released the entire R$ 784 millionof the long-term loan to Itaqui relating to subcredits A, B and C, incurring an annual cost of TJLP +2.78%. The financing facility has a term of 17 years, with 14 years repayment and a grace period onthe principal until July 2012. Subcredit D, intended for social investments (BNDES Social) of R$ 13.7million, only incurs TJLP and R$ 11.7 million has been disbursed to date. The "BNDES Social"facility has a total term of 9 years, with 6 years repayment and a grace period until July 2012. Theinterest earned during the grace period was capitalized along with the amounts disbursed. Thebalance of the principal at March 31, 2014 therefore stands at R$ 813.7 million. The interest on theseloans was capitalized during the construction phase. This financing is secured by the traditionalguarantee for project finance loans.

(b) To top up the funding from the BNDES, Itaqui took out a loan from BNB-FNE, worth a total R$ 203million under which the last payment was released on July 28, 2011, completing the loan. The BNBloan has a total term of 17 years, with 14 years repayment and a grace period on the principal untilJuly 2012. It is charged interest of 10% p.a. The funding has a performance bonus (15%), whichconsequently reduces the cost to 8.5% per annum. This financing is secured by the traditionalguarantee for in project finance loans.

(c) R$ 99 million of this indirect BNDES line has been released to Itaqui consisting of subcredits A, B, C,D and E, whose agents are the banks Bradesco and Votorantim This part of the loan has a total termof 17 years, including 14 years of amortization and a grace period for interest and the principal untilJuly 2012. The loan incurs IPCA + BNDES Reference rate + 4.8% p.a. during the construction stageand IPCA + BNDES Reference rate + 5.3% during the operational stage. The interest earned duringthe grace period was capitalized along with the amounts disbursed. The balance of the principal atMarch 31, 2014 therefore stands at R$ 111.7 million. The interest on these loans was capitalizedduring the construction phase. This financing is secured by the traditional guarantee for projectfinance loans.



46

(d) The entire subcredit F, of the loan mentioned in the previous item equal to R$ 141.8 million, hasbeen passed through to Itaqui. This part of the loan has a total term of 17 years, with 14 yearsrepayment and a grace period on the principal and interest of until July 2012. The loan incurs TJLP+ 4.80% p.a. during the construction stage and TJLP + 5.30% during the operational stage. Theinterest earned during the grace period was capitalized along with the amounts disbursed. Thebalance of the principal at March 31, 2014 therefore stands at R$ 158.8 million. The interest on theseloans was capitalized during the construction phase. This financing is secured by the traditionalguarantee for project finance loans.

MPX Pecém II Geração de Energia SA (Pecém II)

(e) By March 31, 2014 Pecém II had received R$ 615.3 million of the R$ 627.3 million earmarked insubcredits A, B, C, D and L of the long-term financing contract with the BNDES (in nominal R$,excluding interest during the construction). These subcredits have a total term of 17 years, with 14years repayment and a grace period on the principal and interest of until July 2013. The loan incursLTIR + 2.18% p.a. The interest earned during the grace period was capitalized along with theamounts disbursed. The balance of the principal at March 31, 2014 therefore stands at R$ 697.1million. This financing is secured by the traditional guarantee for project finance loans.

(f) Pecém II received R$ 110.1 million referring to subcredits E, F, G, H and I of the long-term financingcontract with the BNDES mentioned in the item above. These subcredits have a total term of 17years, with 14 years repayment and a grace period on the principal and interest of until June 2014.The loan incurs IPCA + BNDES Reference rate + 2.18% p.a. Subcredit J, of R$ 22 million, whichcomprised this financing line, was transferred in April 2012 to subcredit A of the previous item. Thisfinancing is secured by the traditional guarantee for project finance loans.

(g) To top up the funding from the BNDES, Pecém II took out a loan from BNB with FNE funding,worth a total R$ 250 million, which has been disbursed in its entirety. The BNB loan has a total termof 17 years, with quarterly interest and 14 years' repayment and a grace period on the principal untilFebruary 2014. It is charged interest of 10% p.a. The funding has a performance bonus (15%), whichconsequently reduces the cost to 8.5% per annum. This financing is secured by the traditionalguarantee for project finance loans.

UTE Parnaíba Geração de Energia SA (Parnaíba I)

(h) On December 27, 2011 Parnaíba I borrowed R$ 75 million under a CCB loan (Bank Credit Note) withBRADESCO, which was endorsed by the parent company. Taken out to finance the construction ofthermoelectric power plants Maranhão IV and V, this bridge loan incurs annual interest of the CDIrate + 3% and matures initially on June 26, 2013, whereupon the principal and interest is due. Afurther R$ 75 million was disbursed on February 28, 2012 by the bank on the same terms as theprevious disbursement. R$ 90 million of the principal plus the interest due was settled on December28, 2012, when the long-term BNDES loan described in items (j) and (k) was released. On June 26,2013 the company renegotiated the principal balance of R$ 60 million, paying all the interest due upto that date with the new maturity date changing to September 24, 2013 and the interest held at theCDI rate plus 3% per annum. On September 24 UTE Parnaíba renegotiated the terms of the contract,changing the maturity date to October 24, 2013 and subsequently to November 24, 2013. On October31, 2013 a new renegotiation amended the loan's maturity to December 18, 2014. The principal andinterest will be paid in 15 monthly installments. The balance of the principal at March 31, 2014therefore stands at R$ 36 million.



47

(i) On December 27, 2011 Parnaíba I borrowed R$ 125 million under a CCB loan (Bank Credit Note)with Banco Itaú BBA, which was endorsed by the parent company. Taken out to finance theconstruction of thermoelectric power plants Maranhão IV and V, this bridge loan incurs annualinterest of the CDI rate + 3% and matures originally on June 26, 2013, whereupon the principal andinterest was due. R$ 60 million of the principal plus the interest due was settled in December 2012,when the long-term BNDES loan described in items (j) and (k) was released. On June 26, 2013 thecompany renegotiated the principal balance of R$ 65 million, paying all the interest due up to thatdate with the new maturity date changing to September 24, 2013 and the interest held at the CDIrate plus 3% per annum. On this date a new renewal amended the loan's maturity to October 24,2013 and subsequently to April 15, 2015. The principal and interest will be paid in 5 quarterlyinstallments commencing April 15, 2014. The balance of the principal at March 31, 2014 thereforestands at R$ 60.7 million.

(j) In December 2012 Parnaíba I received R$ 495.7 million as subcredits B and C of the bridge loanfrom BNDES, out of a total of R$ 671 million. These subcredits will be amortized over 168 monthlyinstalments commencing July 15, 2013, along with the interest. The loan incurs LTIR + 1.88% p.a.The balance of the principal at March 31, 2014 therefore stands at R$ 484.3 million.

(k) In December 2012 Parnaíba I also received R$ 204.3 million referring to the entire subcredit A of thelong-term financing contract with the BNDES mentioned in the item above. This subcredit will beamortized over 13 annual instalments commencing July 15, 2014, along with the interest. The loanincurs IPCA + BNDES Reference rate + 1.88% p.a. The interest earned during the grace period wascapitalized along with the amounts disbursed. The balance of the principal at March 31, 2014therefore stood at R$ 220.8 million. This financing is secured by the traditional guarantee for projectfinance loans.

UTE Parnaíba II Geração de Energia SA (Parnaíba II)

(l) On March 30, 2012 the Parnaíba II project secured R$ 100 million under a CCB loan from BancoItaú BBA, endorsed by the parent company. Originally maturing on September 30, 2013 for thepayment of principal and interest, this bridge loan was used to finance the building of the MaranhãoIII thermal power plant. Upon maturity this bridge loan incurs annual interest of the CDI rate + 3%and matures on September 30, 2013, whereupon the principal and interest was due. The companyrenegotiated the loan, altering its maturity date to December 30, 2013. The loan was subsequentlyrenegotiated, changing its maturity to December 30, 2014 and an additional R$ 100 million wasborrowed, maturing on December 30, 2014. The balance of the principal at March 31, 2014 thereforestands at R$ 200 million.

(m) In May 2012 Parnaíba II borrowed R$ 325 million under a CCB loan from Caixa Econômica Federal,which was endorsed by the parent company. Taken out to finance the construction of thermoelectricpower plant Maranhão III, this bridge loan incurs annual interest of the CDI rate + 3% and originallymatured on November 7, 2013, whereupon the principal and interest was due. A portion of R$ 125million has been released, in addition to two portions of R$ 100 million, on May 8, 2012, May 15,2012 and May 30, 2012. Upon maturity the company renegotiated the loan, altering its maturity dateto December 30, 2013. R$ 45 million of the principal has been repaid to date, in addition to theinterest incurred, and the remaining amount has been renegotiated to December 30, 2014. Thebalance of the principal at March 31, 2014 therefore stands at R$ 280.0 million.

(n) Parnaíba II received a bridge loan from BNDES of R$ 280.7 million at the end of December 2013.This loan will be amortized in a single payment on June 15, 2015 along with the interest. The annualcost was LTIR + 2.40%.



48

Eneva S.A. (Eneva)

(o) On December 16, 2013 Eneva renegotiated the R$ 105.8 million of CCBs (Bank Credit Notes) fromBanco Itaú BBA S.A., paying all the interest due up to that date with the new maturity date changingto December 16, 2014. The cost will be CDI plus 2.65% per annum with the interest and principalbeing paid at the end of the loan.

(p) On September 27, 2012 the parent company Eneva S.A issued a CCB (Bank Credit Note) via BancoCitibank S.A. for R$ 101,250 maturing on September 27, 2013. The interest agreed was 100% of theCDI rate +1.15% per annum and is due upon maturity, on September 27, 2013. On this date EnevaS/A renewed this agreement, changing its maturity date to September 22, 2014 and changing theinterest rate to CDI plus 2.95% per annum.

(q) On September 27, 2012 Eneva took out a loan equal to USD 50,000 from Banco Citibank S.A. undera Credit Agreement, in due accordance with BACEN Resolution 4131. This loan is subject to interestof Libor + 1.26% p.a. and will be paid quarterly. The principal will be paid semi-annually, with agrace period of September 26, 2014 and the contract expiring on September 27, 2017. Eneva S.A.took out a swap from Citibank in order to hedge this loan against exchange variance. See Note 18.

(r) On December 13, 2012 Eneva issued a CCB (Bank Credit Note) via Banco BTG Pactual for R$ 101.9million maturing on December 13, 2013. Upon maturity the line was renegotiated, altering itsmaturity date to December 9, 2014. The interest will be paid quarterly at the cost of the CDI rate plus3.75% p.a. The principal will be paid in full upon maturity.

(s) On February 7, 2013 Eneva issued a CCB (Bank Credit Note) via Banco BTG Pactual for R$ 350million maturing on August 6, 2013. The interest agreed was 100% of the CDI rate 2.95% per annumand is due upon maturity. On August 6, 2013 the company renegotiated the loan, altering itsmaturity date to December 2, 2013. A new renegotiation extended the debt's maturity date to June 9,2015, with interest paid quarterly at the cost of CDI + 3.75% p.a. and the principal paid on maturity.

(t) On December 9, 2013 and December 26, 2013 Eneva issued two CCBs (Bank Credit Notes) via BancoBTG Pactual for the individual amounts of R$ 100 million on December 9, 2013 and R$ 270 millionon December 26, 2013, both maturing on December 9, 2014. The interest agreed was 100% of theCDI rate 3.75% per annum and is due quarterly.

(u) On March 25, 2013 Eneva issued a CCB (Bank Credit Note) via Banco HSBC for R$ 100 millionmaturing on March 25, 2014. The interest agreed was 100% of the CDI rate 1.75% per annum and isdue upon maturity. The interest accumulated to December 12, 2013 was paid and a new maturity wasagreed for December 12, 2014. The spread for this new period will be 2.75% per annum. At the timeof the renegotiation the company issued a new CCB amounting to R$ 203.8 million scheduled formaturity on December 12, 2014. The cost will be CDI plus 2.75% per annum with the interest andprincipal being paid at the end of the loan.

(v) Eneva took out a loan from Citibank S.A. of R$ 42 million (in the form of a CCB) on November 1,2013, maturing on November 3, 2014. The interest will be paid quarterly at the cost of the CDI rateplus 4.00% per annum and the principal will be paid upon maturity.

(w) On December 9, 2013 Eneva issued a Banco Citibank CCB (Bank Credit Note) for R$ 100 millionmaturing on December 9, 2014. The principal and interest will be paid at maturity at the cost of theCDI rate plus a spread of 4.00%.



49

(x) On December 5, 2013 Eneva issued a Itaú BBA CCB (Bank Credit Note) for R$ 200 million maturingon December 5, 2014. The interest agreed was 100% of the CDI rate plus 2.65% per annum withprincipal and interest due upon maturity.

(y) On December 09, 2013 Eneva issued a Itaú BBA CCB (Bank Credit Note) for R$ 210 millionmaturing on December 9, 2014. The interest agreed was 100% of the CDI rate plus 2.65% per annumwith principal and interest due upon maturity.

(z) As a result of the negotiations of OGX Maranhão (now Parnaíba Gás Natural), Eneva took out a loanfrom Banco Santander of R$ 66.6 million (CCB) on November 4, 2013, maturing on January 15,2015. The interest will be paid monthly at the cost of the CDI rate plus: 3.25% per annum until June14, 2014, 3.75% per annum until September 14, 2014 and 4.25% until the full settlement of the CCB.The entire CCB was settled in March 2014 along with the interest incurred.

(aa) As a result of the negotiations of OGX Maranhão (now Parnaíba Gás Natural), Eneva took out a loanfrom Morgan Stanley of R$ 66.6 million (CCB) on November 4, 2013, maturing on January 15, 2015.The interest will be paid monthly at the cost of the CDI rate plus 3.25% per annum until June 14,2014, 3.75% per annum until September 14, 2014 and 4.25% until the full settlement of the CCB. Theentire CCB was settled in March 2014 along with the interest incurred.

(bb) As a result of the negotiations of OGX Maranhão (now Parnaíba Gás Natural), Eneva took out a loanfrom Itaú BBA of R$ 66.6 million (CCB) on November 4, 2013, maturing on January 15, 2015. Theinterest will be paid monthly at the cost of the CDI rate plus 3.25% per annum until June 14, 2014,3.75% per annum until September 14, 2014 and 4.25% until the full settlement of the CCB. The entireCCB was settled in March 2014 along with the interest incurred.

(cc) On January 29, 2014 Eneva issued a Itaú BBA CCB (Bank Credit Note) for R$ 80 million maturingon January 19, 2016. The interest agreed was 100% of the CDI rate plus 3.15% per annum withprincipal and interest due upon maturity.

Porto do Pecém Geração de Energia SA (Pecém I)

(dd) By June 30, 2013 the BNDES had released R$ 1.40 billion of a long-term loan to Pecém I. TheBNDES financing agreement involves a total amount of R$ 1.41 billion (in nominal R$, excludinginterest during the construction), with a total term of 17 years, including 14 years for amortizationand a grace period for payment of interest and principal of until July 2012. The loan incurs LTIR +2.77% p.a. The interest was capitalized during the construction phase. The balances of the principaland interest stated in the table above refer to 50% of the original balances, and take into account the50% interest of EDP Energias do Brasil S.A. in the company. This financing is secured by thetraditional guarantee for project finance loans.

(ee) To top up the direct loan from the BNDES, Pecém I has a direct loan from the InteramericanDevelopment Bank - BID ("A loan"), worth a total USD 147 million, of which USD 143.78 million hasbeen released thus far (equal to R$ 305,537 at March 31, 2014). The A Loan has an annual cost ofLibor + 3.5% and a total term of 17 years, with 14 years repayment and a grace period on theprincipal of until July 2012. The balances of the principal and interest stated in the table above referto 50% of the original balances, and take into account the 50% interest of EDP Energias do BrasilS.A.



50

(ff) To top up the direct loan from the BNDES, Pecém I has an indirect loan from the InteramericanDevelopment Bank - BID ("B loan"), worth a total USD 180 million, of which USD 176 million hasbeen released thus far (equal to R$ 356,473 at March 31, 2014). The onlending banks are GrupoBanco Comercial Português, Calyon and Caixa Geral de Depósito. The B Loan has a total term of 13years and a cost of 3.0%, with 10 years repayment and a grace period on the principal until July2012. The balances of the principal and interest stated in the table above refer to 50% of the originalbalances, and take into account the 50% interest of EDP Energias do Brasil S.A.

MPX Chile Holding Ltda (MPX Chile)

(gg) On April 13, 2011 MPX Chile took out an offshore loan from Banco Credit Suisse, endorsed by theparent company. The loan is denominated in US dollars amounting to USD 15 million (equal toR$ 20,367 at March 31, 2014), charging fixed annual interest of Libor + 8.13%. The principal andinterest will be paid semi-annually, with a grace period for the principal until April 15, 2013 and thecontract expiring on April 15, 2015. The balances of principal and interest shown in the table aboveaccount for 50% of the original balances.

(hh) On June 29, 2011 MPX Chile took out an offshore loan from Banco Credit Suisse, endorsed by theparent company. The loan is denominated in US dollars amounting to USD 10 million (equal toR$ 13,578 at March 31, 2014), charging fixed annual interest of Libor + 8%. The principal andinterest will be paid semi-annually, with a grace period for the principal until April 15, 2013 and thecontract expires on April 15, 2015. The balances of principal and interest shown in the table aboveaccount for 50% of the original balances.

UTE Parnaíba IV Geração de Energia SA (Parnaíba IV)

(ii) On April 29, 2013 the Parnaíba IV project borrowed R$ 70 million under a CCB contract (BankCredit Note) with Banco BTG Pactual. Taken out to finance the construction of a natural gas thermalpower plant with Kinross Brasil Mineração S.A., this bridge loan incurs annual interest of the CDIrate plus 2.28% per annum and matures on January 29, 2014, whereupon the principal and interestis due. This loan was settled on maturity.

UTE Parnaíba III Geração de Energia SA (Parnaíba III)

(jj) On November 25, 2013 the Parnaíba III project secured a bridge loan from Banco Bradesco ofR$ 120 million, initially maturing on January 9, 2014. A new maturity date was agreed for January31, 2014. The cost of the bridge loan is CDI plus 2.53% per annum. Principal and interest will be paidat the end of the operation. A promissory note was issued to replace this loan on the same terms andwith a new maturity date of July 30, 2014.

The portions of the loans and financing classified in non-current liabilities at March 31, 2014 havethe following payment schedule:

ConsolidatedMaturity2015 846,6662016 325,7302017 282,0092018 to final maturity 2,223,562

3,677,967



51

Project finance is secured by guarantees including share pledges, statutory lien of rights andreceivables, statutory lien of the rights emerging from the project, conditional assignment of rightsand contracts, statutory lien of machinery and equipment, amongst others.

Financial covenants

Creditors involved in financial contracts use financial covenants in a number of debt contracts tomonitor the Company and its investees' financial situation.

The financing contracts relating to the ventures Porto do Pecém Geração de Energia S.A., MPXPecém II Geração de Energia S.A., UTE Porto do Itaqui Geração de Energia S.A. and UTE ParnaíbaGeração de Energia S.A. have minimum debt service coverage indexes that measure the paymentcapacity of the financial expense in relation to EBITDA. .

All the financial covenants had been met at March 31, 2014.

A number of financing contracts also have nonfinancial covenants, which are usual for the marketand have been summarized below. At March 31, 2014 all these covenants were being met.

Obligation to periodically submit financial statements to creditors.

Creditor rights to inspect and visit facilities.

Obligation to keep up with tax, social security and payroll obligations.

Obligation to maintain materially important contracts for its operations in force.

Comply with environmental legislation and keep any operating licenses necessary in force.

Contractual restrictions on related-party transactions and sales of assets outside the normalcourse of business.

Restrictions on the change of share control, corporate restructuring and material changes to thecore activities and articles of association of the borrowers, and

Restrictions on debt ratios and the procurement of new debt.

No non-performance of financial and non-financial covenants were detected up to March 31, 2014.

16 Taxes and contributions payable


March 31,2014

December 31,2013

March 31,2014

December 31,2013

Corporate Income Tax - IRPJ 7 1,960Social Contribution on Net Income - CSLL 773Income Tax Withheld at Source - IRRF 60 6 8,891 6,286ICMS 19 1 2,318 634PIS, COFINS, IRRF and CSL 421 570 11,080 23,406Tax on Financial Transactions - IOF 7 56 8 58Others 62 76 12,476 15,550

Current 576 709 37,506 45,934



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17 Financial instruments and risk management

The management of these financial instruments is done through operating strategies and internalcontrols, aimed at liquidity, profitability and security. The control policy consists of permanentlymonitoring contract rates versus market rates. The Company and its subsidiaries do not invest inderivative financial instruments or any other risky assets on a speculative basis. This is adetermination of the financial investment policy.

The estimated realization values of the financial assets and liabilities of the Company and itssubsidiaries were determined through information available in the market and appropriate valuationmethodologies. However, considerable judgment was required in the interpretation of the marketdata to estimate the most adequate realization value. Consequently, the estimates below do notnecessarily indicate the values that could be realized in the current exchange market. The use ofdifferent market methodologies may have a material effect on the estimated realizable values.

See below a description of the consolidated book balances for the financial instruments included inthe balance sheets at March 31, 2014 and December 31, 2013:

Parent company

March 31,2014

December 31,2013

Financial instruments Total Total

AssetsLoans and receivables

Cash and cash equivalents 19,694 110,157Escrow deposits 39 38Loans to subsidiaries 979,289 909,327Accounts receivable from other related parties 12,542 217,337Accounts receivable from subsidiaries 127,513 123,005AFAC-with subsidiaries 136,295

Fair value through profit or lossGains on derivative transactions 13,207 4,171

LiabilitiesOther financial liabilities

Trade payables 5,312 3,473Loans and financing 2,128,485 2,217,628Debentures 5,356 5,350Debts with subsidiaries 5,560 4,444Loans with other related parties 31,140 30,045

Fair value through profit or lossStock options 354,025 350,514



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Consolidated

March 31,2014

December 31,2013

Financial instruments Total Total

AssetsLoans and receivables

Cash and cash equivalents 96,801 277,582Accounts receivable 344,704 294,396CCC subsidy receivable 46,935 30,802Escrow deposits 128,711 118,644Loans to subsidiaries 246,305 191,968Accounts receivable from other related parties 13,886 218,680Accounts receivable from subsidiaries 131,615 117,372

Fair value through profit or lossGains on derivative transactions 13,207 4,171

LiabilitiesOther financial liabilities

Trade payables 338,185Loans and financing in R$ 6,098,862 6,210,520Debentures 5,356 5,350Debts with subsidiaries 105,889 145,412Debits with related parties 180,815 162,308Contractual retentions 79,942

Fair value through profit or lossStock options 354,025 350,514

The financial instruments measured at amortized cost and presented above are close to their marketvalues (fair value).

17.1 Fair value of financial instruments

The concept of fair value states that assets and liabilities should be valued at market prices, in thecase of liquid assets, or by using mathematical pricing methods, in other cases. The hierarchy level ofthe fair value gives priority to unadjusted prices quoted on an active market. A part of the Company'saccounts has the fair value equal to book value, these accounts include cash equivalents, payablesand receivables, bullet debts and short-term.



54

Consolidated

March 31, 2014

Pricesobservable in

an activemarket

Pricing withobservable

prices

Pricingwithout

observableprices

(Level I) (Level II) (Level III)

Loans and financing (5,705,981 )Stock options (354,025 )Derivatives 13,207

Balance at March 31, 2014 (6,046,799 )

December 31,2013

Pricesobservable in

an activemarket

Pricing withobservable

prices

Pricingwithout

observableprices

(Level I) (Level II) (Level III)

SecuritiesStock options (350,514 )Derivatives 4,171

Balance at December 31, 2013 (346,343 )

17.2 Derivatives, hedges and risk management

The Company has a formal policy for financial risk management. The use of financial instruments forhedging purposes is done through an analysis of the risk exposure (exchange and interest rates,amongst others) and follows the strategy approved by the Board of Directors.

The protection guidelines are applied according to exposure type. The risk factors posed by foreigncurrencies should be neutralized in the short term (within 1 year), and the protection may beextended for longer. Decision taking regarding the risk posed by interest rates and inflation onliabilities acquired will be assessed in terms of the economic and operational context and whenManagement deems the risk to be material.



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17.2.1 Notional and fair value of derivative instruments

Forward currency contract - acquisition of US dollars (USD)


MaturityNotional

USD MTMNotional

USD MtM

Eneva S.A.Long position USD (purchased)Morgan Stanley 59,207 4,171

Total USD 59,207 4,171

Swap Cross-Currency


Maturity Notional Assets Liabilities MTM Notional MtMEneva S.A.

Libor USD | DICitibank September 27, 2017 101,250 115,058 101,851 13,207 101,250 15,650

Total Swap 101,250 115,058 101,851 13,207 101,250 15,650

17.2.2 Market risks

Risk of change in commodity prices, exchange rates and interest rates.

17.2.2.1 Risk of oscillation in commodity prices

In Eneva's case, this risk is exclusively posed by the coal price, which is recorded, according to theformation of inventory for generating energy in the thermoelectric power plants.

The inventory coal price is established and will be converted into revenue, according to theremuneration for the energy generation, according to the PPA rules1. The period between thepurchase of the cargo and its use for generating energy constitutes the price change risk incurred bythe thermoelectric power plant.

(a) Risk management

The coal price risk is managed by structuring hedge transactions in the future coal market withoutphysical settlement. Eneva is seeking resources in the domestic market - whose market for this typeof operation is still incipient - to mitigate the risk posed by its coal inventory by structuring hedgesduring 2014.

17.2.2.2 Exchange risk

Risk of change in exchange rates which could be associated to the Company's assets and liabilities.

1 The Multiyear Plan (PPA) is the planning instrument that establishes the regional guidelines, objectives andtargets of the Public Administration for a period of four years.



56

(a) Risk management

The Company manages the exchange risk on a consolidated basis for its companies to detect andmitigate risks posed by changes in exchange rates underlying global assets and liabilities. The aim isto detect or create natural hedges, taking advantage of the synergy between the companies'operations, thereby minimizing the use of derivatives. Derivative instruments are used in caseswhere natural hedges cannot be taken advantage of.

(b) Investment in fixed assets (capex)

The revenue of Eneva's consolidated energy generating units is denominated in reais. Part of theinvestment made in fixed assets is also paid in foreign currency, primarily US dollars and euros. Thevolumes and terms of these payments do not generally require the structuring of hedge transactions.The Company is currently mapping out the payments in foreign currencies - based on historic andfuture entries, in order to establish an average amount and terms, thereby ensuring control over therelated foreign currency exposure.

(c) Coal inventory

The Company goes long when forming its coal inventory for its thermal power plants, which in turnis determined in the international market in US dollars. The Company consequently also assumes along position in US dollars, generally creating a mismatch between its assets and liabilities. Asmentioned earlier for the coal price risk, the Company is studying hedge mechanisms against themarket risks posed by coal purchases. In other words, the commodity price hedge and the exchangerisk hedge will be structured simultaneously.

(d) Loans and financing

The Company has foreign exchange exposure on its financial liabilities, deriving from transactions inUS dollars by its subsidiaries. Eneva's 50.00 million dollar loan is translated into reais forrestatement via the DI rate via a cross-currency swap. The result and sensitivity analysis of theoperation are shown below.

Scenario I Scenario II

Risk for the position Fair value(25%

increase)(50%

increase)Eneva S.A.

Cross-Currency Swap (hedge) US Dollar devaluation 115,058 143,822 172,587Dollar loan US Dollar valuation (115,058) (143,822) (172,587 )

Net exposure

(*) The valuation does not denote the total exposure in the currency or the overall loss posed bythis exposure.

Reference rate: PTAX 800 Venda (2.2630 on March 31, 2014) of the Brazilian Central Bank

Scenario I: adverse change of 25% (increase in foreign exchange rate to generate loss in a shortposition)

Scenario II: adverse change of 50% (increase in foreign exchange rate to generate loss in a shortposition)



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(e) Operations hedged by derivative instruments

US Dollar loan at UTE Porto do Pecém

Hedge accounting

The investment in capex of Energia Pecém (construction of the thermal power plant) will consist of75% long-term financing, partly in US dollars, and 25% of company capital. The long-term financingagreements were signed with the Inter-American Development Bank ("BID") and the National Socialand Economic Development Bank ("BNDES") on July 10, 2009. To finance its capex requirements inthe period prior to July 10, 2009 it was necessary to take out a bridge loan from Citibank, which willbe repaid using funds provided under these financing agreements.

As most of the investment is denominated in US dollars and Euros and its future revenue will begenerated in Brazilian reais, derivative instruments have been taken out for hedge purposes. OnApril 1, 2009 the Company used hedge accounting in order to hedge against the exchange varianceon the long-term US dollar financing loans taken out from IDB. The derivative instrument used is anNDF maturing in October 2012 with a notional value of USD 327 million. (USD 163.5 million equalto 50% of the interest of Eneva S.A.). This NDF was rolled over on September 25, 2012 with anotional value of USD 327 million and maturing between November 2012 and May 2015.

As this is hedge accounting classified as cash flow, changes in the fair value of derivative instrumentsdesignated as cash flow hedges are recognized directly in shareholders' equity for the amount of thehedge that is considered effective. The difference between the fair value and the exchange variance isthe ineffective portion which is therefore recognized in the statement of operations.

This bridge loan was settled on October 30, 2009. USD 260 million was released on this dateconsisting of the first part of the long-term funding from BID and the adjustment to present value(AVP) was calculated based on the USD 67 million yet to be disbursed by the BID (before thisrelease, the AVP was calculated based on the exposure of USD 169 million relating to the differencein the contracted derivative of USD 327 million and the bridge loan of USD 158 million). USD 50million was released on August 31, 2010 referring to the second portion of the IDB long-termfinancing, and the AVP accordingly began to be calculated based on the outstanding USD 17 million,not yet disbursed by IDB. USD 9 million was released on February 4, 2011 referring to the thirdportion of the IDB long-term financing, and the AVP accordingly began to be calculated based on theoutstanding USD 7 million, not yet disbursed by IDB.

The impacts of the gains and losses of this hedge accounting transaction in the period were asfollows:

2014

Net incomeShareholders'

equity

Hedge derivativesDerivative gains (losses) (870 ) 574



58

2013


equity

Hedge derivativesDerivative gains (losses) (3,465 ) 2,287

On April 1, 2011 the Company used hedge accounting in order to hedge against the Libor interest forthe amortization period on the long-term US dollar financing loans taken out from IDB. Thederivative instrument designated for this relation is an interest-rate cash-flow float/fixed maturingbetween October 2012 and October 2024, whose notional amounts refer to the expectedaccumulated disbursement tranches of the long-term interest owed to IDB.

As this is hedge accounting classified as cash flow, changes generated by the MTM (mark-to-market)variance, net of the interest provided for up to the base date, are recognized directly in shareholders'equity in an equity valuation adjustment account. The difference between the fair value and theLibor rate is the ineffective portion which is therefore recognized in the statement of operations.

The impacts of the gains and losses of this hedge accounting transaction in the period were asfollows:

2014


equity

Hedge derivativesDerivative losses (887 ) 585

2013


equity

Hedge derivativesGain on derivatives (13,776 ) 9,092

17.2.2.3 Interest rate risk

Risk of shifting of the interest structure that could be associated with the payment flows of the debtprincipal and interest.

(a) Cash flow risk related to floating interest rates

There is a financial risk associated with floating rates that could increase the future value of thefinancial liabilities. The common risk is uncertainty about the interest futures market, which makespayment flows unpredictable. In loss scenarios, the interest forward rises, thereby increasing theliability's value. Alternatively, the company's liabilities could diminish if the rates fell.



59

More than 90% of Eneva and its subsidiaries' liabilities are indexed to floating interest in theinterbank deposit segment (DI) and the long-term interest rate of the BNDES (TJLP), and in theinflationary segment with restatement according to the IPCA price index.

The debt that incurs the interbank deposit rate is allocated as short-term. 76.71% of the 2.76 billionreais will be repaid by the end of 2014 and the remainder by the first half of 2015. The volatilityposed by this risk factor is therefore substantially reduced.

The BNDES facilities restated by the IPCA and TJLP price indexes - which also contain a stronginflation component - are part of a special credit segment posing low volatility and therefore a lowprobability of abrupt changes in rates. As this is a specific segment, caution should be exercised inrespect of interference and hypotheses in statistical models in the attempt to map out and makeprojections about this segment in order to quantify the hypothetical related losses. Furthermore, thecompanies' assets consisting of the revenue will also be restated by the same rates, whichsubstantially reduces the mismatch between asset and liability rates.

Interest rate sensitivity

The debt restated by the interbank deposit rate - DI had a principal of R$ 1.96 billion and balance ofR$ 2.01 billion at March 31, 2014. 78.00% of this will be repaid by the end of 2014 and 96.00% bythe first half of 2015. The volatility posed by this risk factor is therefore substantially reduced.However, as this is a floating rate in a scenario of rising interest rates, see below the financial loss ifthe interest rate curve were shifted by 25% and 50%, respecting the payment terms of each facility.

At December 31, 2013 the debts of the Company and its subsidiaries are primarily linked to thechange in the CDI interest rate. Given the current upward trend in interest rates, a plausible changein interest rates from 10% to 11.5% per annum would incur an additional financial expense ofR$ 93,157 in 2013, all other variables remaining constant. With a stress of 25% and 50%, thisfinancial expense would amount to R$ 116,447 and R$ 139,737 respectively.

Risk

Futuremarket

value

Futurevalue(25%

increase)

Futurevalue(50%

increase)

Eneva S.A.Cash flow risk related to Increase in interest rate 2,907,056 2,974,992 3,033,249Liability indexed to CDI

Outstanding (Principal + Interest) 2,907,056 2,974,992 3,033,249Increase in financial expense 67,936 126,193

(*) The scenarios do not reflect the Company's projections for interest rates.

This assessment merely aims for compliance with the legislation.

Method: parallel upwards shift in DI rate of 25% and 50%

17.2.3 Credit risk

This arises from the possibility of the Company and its subsidiaries suffering losses due to thedefault of their counterparties or of financial institutions where they have funds or financialinvestments. This risk factor could derive from commercial operations and cash management.



60

To mitigate these risks, the Company and its subsidiaries have a policy of analyzing the financialposition of their counterparties, as well constantly monitoring outstanding accounts.

The Company has a Financial Investment Policy, which establishes investment limits for eachinstitution and considers the credit rating as a reference for limiting the investment amount. Theaverage terms are continually assessed, as are the indexes underlying the investments, in order todiversify the portfolio. The maximum exposure to credit risk is denoted by the balance of short-terminvestments.

Consolidated

March 31,2014

December 31,2013

Positions of credit riskCash and cash equivalents 96,801 277,582Trade receivables 344,703 294,396Gains on derivative transactions 13,207 4,171CCC subsidy receivable 46,935 30,802Escrow deposits 128,711 118,644

Consolidated credit accounts 630,357 725,595

The cash and cash equivalents substantially consists of the current account and investment fund atItaú S.A., a first-rate bank and in relation to accounts receivable its main exposure derives from thepossibility of the Company incurring losses due to problems in realizing receivables. To mitigate thistype of risk and to help manage default risk management, the Company monitors the accountsreceivable realizing several collection proceedings. Furthermore, the Company's customers havesigned an assurance of full performance of the contractual obligations.

17.2.4 Liquidity risk

The Company and its subsidiaries monitor their liquidity levels, based on expected cash flows versusthe amount of cash and cash equivalents at hand. Managing the liquidity risk means maintainingcash, sufficient securities and capacity to settle market positions. The amounts recognized atDecember 31, 2013 approach the operations' settlement values, including estimated future interestpayments (see Note 1).

Consolidated

March 31, 2014(Restated)

Up to 6 6 to 12 1 to 2 to Over Totalmonths months 2 years 5 years 5 years by account

LiabilitiesTrade payables 338,185 338,185Related parties 286,274 430 286,704Loans and financing 844,470 2,401,889 949,760 1,297,788 2,620,561 8,114,468Debentures 751 4,605 5,356Contractual retention 79,942 79,942Financial derivative

instruments 2,866 2,693 4,221 9,780

1,471,795 2,485,275 959,016 1,297,788 2,620,561 8,834,435



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Consolidated

December 31,2013

Up to 6 6 to 12 1 to 2 to Over Totalmonths months 2 years 5 years 5 years by account

LiabilitiesTrade payables 331,216 331,216Related parties 306,545 306,545Loans and financing 676,967 2,570,541 1,079,040 1,324,391 2,696,265 8,347,204Contractual retention 84,789 84,789Financial derivative

instruments 3,971 2,725 4,694 11,390

1,012,154 2,658,055 1,390,279 1,324,391 2,696,265 9,081,144

18 Provision for contingencies

The Company and its subsidiaries are not party to judicial proceedings, involving labor and taxissues rated as a probable loss, and no provision was therefore made for them.

The Company and its subsidiaries are party to judicial proceedings, involving labor and civil issues tothe estimated amount of R$ 110,629 (R$ 108,773 at December 31, 2013). Their legal advisors rate theproceedings as a possible loss, and management does not believe it is necessary to record a provisionfor them.

Downtime Costs (ADOMP)

On January 7, 2014 Pecém I and Itaqui filed legal proceedings against Aneel contesting thecalculation of downtime, as the CCEARs stipulate the use of a mobile average of 60 months ofeffective uptime.

On January 24, 2014 the 15th Federal Court of the Federal District awarded an injunction to thePecém I and Itaqui plan suspending the payment for downtime, based on the time calculated, withimmediate effect.

The legal proceeding against Aneel is also claiming reimbursement of the amounts paid since thecommencement of the CCEARs.

19 Shareholders' equity

At March 31, 2014 and December 31, 2013 respectively, the Company's share capital consists of702,524,469 (seven hundred and two million five hundred and twenty-four thousand, four hundredand sixty-nine) nominative common shares, with no par value and the authorized capital is 1.2billion book-entered common shares with no par value.



62

At March 31, 2014 the Company's share capital was R$ 4,532,314 (R$ 4,532,314 at December 31,2013), consisting of common shares distributed as follows:

2014 %March 31,

2014 %

ShareholderEike Fuhrken Batista 145,704,988 20.7 145,704,988 20.7Centennial Asset Mining Fund LLC (*) 20,208,840 2.9 20,208,840 2.9Centennial Asset Brazilian Equity

Fund LLC (*) 1,822,065 0.3 1,822,065 0.3E.ON 266,269,556 37.9 266,269,556 37.9BNDESPAR 72,650,210 10.3 72,650,210 10.3Others 195,868,810 27.9 195,868,810 27.9

702,524,469 100 702,524,469 100

(*) Controlled by Eike Fuhrken Batista.

The changes in the share capital up to March 2014 have been summarized below:

Quantity Share capitalDate of shares (R$ thousand) Description

December 2012 578,241,732 3,731,734 Opening balanceJanuary 2013 147,480 232 Capital increase - company planFebruary 2013 27,000 95 Capital increase - company planApril 2013 34,500 114 Capital increase - company planMay 2013 29,250 99 Capital increase - company planSeptember 2013 124,031,007 800,000 Capital increaseOctober 2013 13,500 40 Capital increase - company plan

March 31, 2014 702,524,469 4,532,314 Closing balance

The Company's capital was increased in January 2013 by the Board of Directors' meeting heldJanuary 10, 2013, ratifying the issuance of 147,480 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 578,389,212.

The Company's capital was increased in February 2013 by the Board of Directors' meeting heldFebruary 6, 2013, ratifying the issuance of 27,000 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 578,416,212.

The Company's capital was increased in April 2013 by the Board of Directors' meeting held April 5,2013, ratifying the issuance of 34,500 new common shares, with no par value, resulting from theexercising of stock options awarded under the Company's stock options program. The number ofCompany shares accordingly changed to 578,450,712.

The Company's capital was increased in May 2013 by the Board of Directors' meeting held May 8,2013, ratifying the issuance of 29,250 new common shares, with no par value, resulting from theexercising of stock options awarded under the Company's stock options program. The number ofCompany shares accordingly changed to 578,479,962.



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On September 16, 2013 the Board of Directors' meeting ratified the Company's capital increase, asapproved by the Board of Directors' meeting on July 3, 2013, of R$ 799,999,995.15, within theauthorized capital limit, as a result of the subscription and full payment of the 124,031,007 newcommon registered shares with no par value. The number of Company shares accordingly rose from578,479,962 to 702,510,969.

The Company's capital was increased in October 2013 by the Board of Directors' meeting heldOctober 21, 2013, ratifying the issuance of 13,500 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 702,524,469.

20 Earnings per share

Basic and diluted earnings per share

The basic and diluted earnings per share were calculated by dividing the earnings of the yearattributable to the controlling and noncontrolling shareholders of the Company at March 31, 2014and 2013 and the respective average number of common shares in circulation, as per the table below:


Common Total Common Total

Basic and diluted numeratorLoss attributable to shareholders

parent companies (71,931 ) (71,931 ) (250,901 ) (250,901 )

Basic and diluted denominatorWeighted share average 640,131,923 640,131,923 578,416,212 578,416,212

Loss per share (R$) - basic (0.1124 ) (0.1124 ) (0.4338 ) (0.4338 )

At March 31, 2014 and 2013 there is no material difference between the loss per basic and dilutedshare.

21 Share-based remuneration plan

The Company's stock options are as follows:

Parent companyand consolidated

March 31,2014

December 31,2013

Stock options granted - Shareholders' EquityGranted by Company 38,478 36,231Granted by Controlling shareholder 315,547 314,283

354,025 350,514



64

Parent companyand consolidated

March 31,2014

December 31,2013

Expenses incurred on share options awarded 3,511 5,714

The stock option plans were released in two different modalities: the primary plan, which consists ofawarding call options, resulting in the issuance of new shares by the Company or the assignment oftreasury stock; and secondary plans consisting of options offered by the shareholder to Companyexecutives, which in this case does not entail a dilution of the share capital.

(a) Stock option granted by the Company

The Company awarded stock option plans for its own stock to beneficiaries providing services to it.

The Extraordinary General Meeting held November 26, 2007 approved the Stock Purchase OptionProgram, which was recorded in the minutes as an Appendix. The same date share options wereawarded to the Company's executives.

The plan entailed the right to acquire 175,900 shares, following the share split on July 17, 2009,awarded to 5 participants in equal amounts, subject to the individuals remaining at the Company for5 years in order to exercise all of their rights.

The Options Program consists of the right to acquire a certain amount of Company shares, awardedto the program's beneficiary, at a given strike price per share - or purchase price per share - whichhas to be exercised in a period or by a deadline.

The plan's regulations state that the Company's Board of Directors should determine the amount ofshares to be awarded, the strike prices, maturity terms and expiry dates of the rights.

On the date the right is exercised, the shares sold to the plan beneficiary should be subscribed againor placed in the treasury. The Company's other shareholders do not have subscription rights to theshares allocated to the option plans.

The Extraordinary General Meeting held December 7, 2007 approved the grouping of the Company'sshares, by which 22 shares were grouped into 1 common share. The Extraordinary General Meetingheld July 17, 2009 subsequently approved the splitting of the Company shares, by which eachcommon share on that date was split into 20 common shares. A further split was approved onAugust 15, 2012, whereby each common share was split into 3 common shares. These events led toan adjustment in the quantity and strike price of the options under the plans awarded.

The minutes from the Extraordinary General Meeting held September 28, 2010 documented theextension to the Company's stock options program to December 31, 2015.

Options were again awarded to executives on December 1, 2010, subject to the individuals remainingat the company for 7 years.

The Extraordinary General Meeting held April 26, 2011 approved the increase to the maximumpercentage of shares that can be allocated to the Stock Options Program, to 2% of the Company'stotal shares.



65

The EGM held January 26, 2012 updated the Plan's contract and new beneficiaries were included,although for a vesting date of November 24, 2011.

On May 24, 2012 the split-off was approved to CCX Carvão da Colômbia S.A., which accounted for20.69% of the Company's assets. Following the split-off the share value was reduced by the sameproportion. To maintain the value of the options awarded, a discount was awarded in the strike priceof options not exercised by the date the two companies were split-off.

A further 75,000 options were awarded on May 31, 2012. Three more batches were awarded in the3rd quarter of 2012, totaling 165,000 options.

Ten blocks of options had therefore been awarded by December 31, 2013, segregated as follows (*):

Plan 1: 528,000 options awarded on November 26, 2007;Plan 2: 3,300,000 options on December 1, 2010;Plan 2.1: 30,000 options on April 27, 2012 - the second block of Plan 2;Plan 2.2: 60,000 options on June 2, 2012 - the third block of Plan 2;Plan 3: 2,098,500 options on November 24, 2011;Plan 3.1: 225,000 options on May 31, 2012 - the second block of Plan 3;Plan 3.2: 52,500 options on July 10, 2012 - the third block of Plan 3;Plan 3.3: 22,500 options on July 20, 2012 - the fourth block of Plan 3;Plan 3.4: 90,000 options on August 1, 2012 - fifth block of Plan 3; andPlan 3.5: 3,000,000 options on December 13, 2012 - the sixth block of Plan 3.

(*) amounts and strike prices after the split on August 15, 2012 and split-off of CCX.

The table below denotes the general terms of the options awarded by the Company.

PlanDate

awarded

Vestingperiod

(years)Initial dateof maturity

Daterightsexpire

Originalamount

awarded(a)

Originalstrike

price (a)

Strike pricerestated by

IPCA(b)

Plan 1 11.26.2007 5 11.26.2008 11.26.2013 528,000 0.76 -Plan 2 12.1.2010 7 12.14.2011 12.14.2018 3,300,000 2.97 3.87Plan 2.1 4.27.2011 7 4.27.2013 4.27.2020 30,000 4.13 -Plan 2.2 6.2.2012 7 6.2.2013 6.2.2020 60,000 2.97 -Plan 3 11.24.2011 7 11.24.2012 11.24.2019 2,098,500 5.14 5.92Plan 3.1 5.31.2012 7 5.31.2013 5.31.2020 225,000 5.14 5.76Plan 3.2 7.10.2012 7 7.10.2013 7.10.2020 52,500 3.91 4.38Plan 3.3 7.20.2012 7 7.20.2013 7.20.2020 22,500 4.13 4.63Plan 3.4 8.1.2012 7 8.1.2013 8.1.2020 90,000 4.23 4.72Plan 3.5 12.13.2012 7 12.13.2013 12.13.2020 3,000,000 4.53 4.91

Total 9,406,500

(a) Amounts and strike prices after the split on August 15, 2012 and split-off of CCX.



66

The table below shows the changes in the options plan in FY 2013.

Plan awarded by the Company -number of stock options Plan 1 Plan 2 Plan 2.1 Plan 2.2 Plan 3 Plan 3.1 Plan 3.2 Plan 3.3 Plan 3.4 Plan 3.5

Balance at December 31, 2013 1,776,000 1,520,100 225,000 52,500 22,500 60,000 2,900,000

ExercisedCancelled (36,000) (95,850) (50,000)AwardedExpired

Balance at March 31, 2014 1,740,000 1,424,250 225,000 52,500 22,500 60,000 2,850,000

To determine the fair value of the options the Merton model (1973)1 was used, which is a variant ofthe Black & Scholes (1973)2 model which considers dividend payments. A number of assumptionswere made for the model's entry variables. Like:

the share price at the measurement date the instrument's strike price the expected volatility expected dividends the instruments' term, and risk-free interest rate.

To calculate the expected volatility the continuous returns from the price history of the share wereused (based on the past volatility, adjusted for changes expected due to information publiclyavailable). The time window for estimating the expected volatility was the same as the option's term,or the longest term available, when the trading history of the Company's share was shorter than theexpected term.

The risk-free interest rate was based on public securities and interest rate curves published byBM&FBovespa.

Service conditions and performance conditions outside the market inherent to the transactions arenot taken into account when determining fair value.

The table below shows the assumptions made to calculate the fair value of the options awarded bythe Company:

Fair value assumptions Plan 2 Plan 2.1 Plan 2.2 Plan 3 Plan 3.1 Plan 3.2 Plan 3.3 Plan 3.4 Plan 3.5

Number of exercisable options (matured) 217,500 158,250 22,500 5,250 2,250 6,000 285,000Average outstanding term (years) 3.13 3.70 3.82 3.93 3.96 3.99 4.37Fair value of options awarded in R$ (a) 0.19 0.13 0.15 0.22 0.21 0.20 0.23Price of the share in R$ (b) 1.63 1.63 1.63 1.63 1.63 1.63 1.63Strike price of the options in R$ (c) 3.87 5.92 5.76 4.38 4.63 4.72 4.91Average expected volatility (per annum) (d) 50.5% 50.5% 51.6% 50.4% 50.4% 50.5% 49.9%Risk-free interest rate (per annum) (e) 5.85% 6.09% 6.13% 6.10% 6.11% 6.12% 6.16%Effects on net income in the period in R$ k 428 537 85 17 8 23 1,149Intrinsic value in R$ k (f)

(a) Calculation of the options' fair value based on the Merton model (1973).

(b) The closing price of the share ENEV3.

1 MERTON, R. Theory of Rational Option Pricing. Bell Journal of Economics and Management Science, 4(Spring 1973), 141-832 BLACK, F.; SCHOLES, M. The pricing of options and corporate liabilities. Journal of Political Economy,Chicago, v. 81, p. 637-654, 1973



67

(c) Strike prices of the options restated by the IPCA price index.

(d) To calculate the volatility of the share the continuous returns from the price history of the shareENEV3 were used.

(e) Reference rate to adjust the SWAP contracts for the IPCA coupon disclosed by BM&FBOVESPA.

(f) A value of zero is used when the options' intrinsic value is negative.

(b) Stock options granted by the Shareholder

The Plans awarded by the shareholder includes call options granted to executives of the Company.This plan is a means of remunerating and retaining managers and executives who the shareholderviews as key players in the Company's success. These options do not generate any dilution for theother shareholders.

There is no preapproved schedule for this plan, unlike the Company's plan. The shareholder awardedthe plan to employees based on individually negotiated contracts.

As is the case in the plan awarded by the Company, in order to receive each batch, employees mustremain at the Company until the respective maturity date.

The table below shows the overall characteristics of the plan awarded by the shareholder.

PlanDate

awarded

Vestingperiod(years)

Initial dateof maturity

Daterightsexpire

Originalamount

awardedOriginal

strike price

Shareholder 4.28.2008 5 12.13.2008 12.13.2013 3,354,120 0.01Shareholder 4.28.2008 10 12.13.2008 12.13.2018 20,198,040 0.01

23,552,160

The table below consolidates the change in stock options in FY 2013:

Plan awarded by the Shareholder -number of stock options

ShareholderPlan

Balance at December 31, 2013 2,904,812ExercisedCancelledAwardedExpired

Balance at March 31, 2014 2,904,812



68

The table below shows the assumptions made to calculate the fair value of the options awarded bythe Shareholder:

Fair value assumptions

MPXShareholder

Plan

Number of exercisable options (matured) 322,652Average outstanding term (years) 2.74Fair value of options awarded in R$ (a) 1.60Price of the share in R$ (b) 1.63Exercise price of the options in R$ 0.01Average expected volatility (per annum) (c) 52.20%Risk-free interest rate (per annum) (d) 12.20%Effects on net income in the period in R$ (thousand) 1,264Intrinsic value R$ (thousand) 4,706

(a) Calculation of the options' fair value based on the Merton model (1973).

(b) The closing price of the share ENEV3.

(c) To calculate the volatility of the share the continuous returns from the price history of the shareENEV3 were used.

(d) Reference rate to adjust the SWAP contracts for a fixed rate disclosed by BM&FBOVESPA.

22 Operating revenue

The reconciliation between the gross revenue and the net revenue recorded in the statement ofoperations for the period/year is as follows:

Consolidated

March 31,2014

December 31,2013

Gross revenue 656,588 217,569MinusSales taxes (69,816 ) (21,471 )

Total net revenue 586,772 196,098

The increase seen above was due to the commercial start-up of the Itaqui, Pecém II and Parnaíbaplants during the course of 2013.



69

23 Costs and expenses by nature


March 31,2014

December 31,2013

March 31,2014

December 31,2013

Depreciation and amortization (525 ) (453 ) (48,711 ) (17,895 )Personnel expenses (9,775) (5,407) (24,800 ) (19,889 )Outsourced services (11,925) (9,796) (53,272 ) (17,769 )Rental expenses (1,348 ) (1,080) (99,981 ) (17,117 )Expenses incurred on stock options awarded (3,512 ) (5,714) (3,512 ) (5,714 )Provision for Investment Devaluation (165 ) 3 (6,718 ) 3Provision for Unsecured Liabilities 36 (1,040) 110 (973 )Cost per Downtime Incident (32,353 )Material (3,813 ) (1,010 )Insurance (5,739 ) (545 )Other expenses 20,631 (1,249) (3,471 ) (27,973 )Consumables (227,875) (90,207 )CCC Incentive 15,286 19,207Electricity for resale (26,995 ) (172,766 )

(6,583 ) (24,737) (521,845 ) (352,648 )

Classified as:Cost (494,779 ) (312,608 )

Administrative and general expenses and stockoptions granted (6,583 ) (24,736) (27,066 ) (40,040 )

The increase seen above was due to the commercial start-up of the Itaqui, Pecém II and Parnaíbaplants during the course of 2013.

24 Finance result

The Company's financial income is as follows:


March 31,2014

December 31,2013

March 31,2014

December 31,2013

Finance costsCommission on bank guaranteesBank expenses (75,421 ) (23,348 ) (149,417 ) (58,088 )Monetary variance (15,149 ) (1,981) (16,012 ) (2,263 )Loss on derivative transactions (2,831) (2,250 )Debenture interest/cost (211 ) (213) (211 ) (214 )Fair value of debenturesFinancial Advisory ServicesOthers (2,315 ) (17,118 ) (9,170 ) (27,714 )

(93,096 ) (45,491) (174,810 ) (90,528 )

Finance incomeShort-term investments 34,519 13,268 19,239 9,876Monetary variance 19,137 3,407 21,368 3,888Gains (losses) on derivative transactions 9,036 (1,443) 9,036 (1,443 )Fair value of debentures (251) (251 )Others 61 1 874 631

62,754 14,981 50,517 12,701

Net finance costs (30,342 ) (30,509 ) (124,293 ) (77,827 )



70

25 Commitments undertaken

The main commitments undertaken with suppliers of goods and services are the following:

Company Supplier Subject matter of contract Signature Term

Totalcontracted

on March 31,2014

Balance ofcontract

March 31,2014

Balance ofcontract

December 31,2013

Mpx P IIAVIPAM TURISMO E TECNOLOGIA LTDA Purchase of Flights/Accommodation 12.11.2012 5.31.2014 720 412 416

Mpx P IIBANCO BANKPAR SA Supply of accommodation 12.11.2012 12.10.2014 1,360 773 853

Mpx P IIBRASLIMP TRANSPORTES ESPECIALIZADOS LTDA

Collection, transportation and disposal of Class II fluid waste(lime water) and Class II in general 11.5.2013 5.4.2014 882 804 882

Mpx P IICAL TREVO INDUSTRIAL LTDA Supply of Burnt Lime 5.2.2013 5.1.2015 1,119 1,119 1,119

Mpx P IICARBOMIL QUIMICA S.A Supply of Burnt Lime 7.29.2013 5.6.2015 6,000 5,127 5,249

Mpx P II COMPANHIA DE INTEGRACAO PORTUARIA DOCEARA CEARAPORTOS

Regulation of the movement of solid bulk at the Pecém PortTerminal 6.29.2012 1.1.2025 7,674 6,092 763

Mpx P II COMPANHIA DE INTEGRACAO PORTUARIA DOCEARA CEARAPORTOS Supply of Electricity to the Port 8.7.2012

Notdetermined 2,400 1,532 1,658

Mpx P IIE ON GLOBAL COMMODITIES SE Supply of coal 10.2.2013 1.9.2014 26,700 9,255 9,255

Mpx P IIE ON GLOBAL COMMODITIES SE Supply of coal 1.2.2014 12.31.2014 109,179 83,281 -

Mpx P IIEBM CONSULTORIA E INVESTIMENTOS LTDA

Technical consultancy services for obtaining long-term financing fromthe Banco do Nordeste do Brasil S.A. (BNB). 1/29/2010


Mpx P IIELETROMECANICA CAPISTRANO EIRELI-ME

Services for supporting the commissioning and maintenanceof turbine 03 9.18.2013 1.31.2014 3,300 298 854

Mpx P IIELETROMECANICA CAPISTRANO EIRELI-ME

Specialist labor services for the maintenance and operation ofUTE Pecem II. 1.24.2014 12.31.2014 4,800 4,179 -

Mpx P II FORNECEDORA MAQUINAS E EQUIPAMENTOSLTDA

Provision for Coal Spreading, Stacking and Compacting ofCoal in the Yard. 8.7.2012 6.26.2014 2,251 167 732

Mpx P IIFORSHIP ENGENHARIA S/A

Technical commissioning services at the Pecém II thermalpower plant 1.2.2013 7.21.2014 8,500 1,651 1,596

Mpx P IIGUIMAR ENGENHARIA S.A. Support for project closure process management 9.28.2012

Notdetermined 2,000 303 449

Mpx P IIICAL INDUSTRIA DE CALCINAÇÃO LTDA Supply of Burnt Lime 8.9.2013 4.22.2015 786 786 786

Mpx P IIMINERAÇÃO BELOCAL LTDA Supply of Burnt Lime 9.3.2013 5.1.2015 941 347 941

Mpx P IIMINERAÇÃO LAPA VERMELHA LTDA Supply of Burnt Lime 9.9.2013 2.28.2015 1,871 388 871

Mpx P IIMONSERTEC MANUTENCAO INDUSTRIAL LTDA

Maintenance support for scaffolding, thermal insulation andindustrial paintwork 10.28.2013 10.27.2015 1,440 1,040

Mpx P II NUTRINOR RESTAURANTES DE COLETIVIDADELTDA Provision of meals - breakfast, lunch, dinner and supper 12.7.2012 1.10.2014 571 129 175

Mpx P IINATIONAL ELECTRIC SYSTEM OPERATOR - ONS Transmission services between concession operators and Mpx 2.8.2013

Notdetermined 25,601 4,195 10,589

Mpx P IIOPCAO CONSTRUCOES E SERVICOS LTDA Services for raising slopes of the coal yard 5.22.2014 1,063 823

Mpx P II PORTO DO PECEM TRANSPORTADORA DEMINERIOS S/A

Product unloading services for ships moored at the terminaland shipment to the point of delivery 3.26.2012 12.31.2016 6,950 4,885 5,632

Mpx P IIREX EMPREENDIMENTOS IMOBILIARIOS LTDA Property rental 1.1.2009 11.27.2042 45,283 39,178 39,592

Mpx P II RH CLEAN SERVICOS PROFISSIONAIS DE LIMPEZALTDA

Cleaning Services of the Coal Transfer Towers 1.8.2013 12.31.2014 1,263 844 1,102Mpx P II

RH CLEAN SERVICOS PROFISSIONAIS DE LIMPEZALTDA

Provision and availability of 3 financial assistants, 1administrative assistant, 1 supply assistant and 1 suppliesanalyst 7.2.2012 3.31.2014 750 22 41

Mpx P II RH CLEAN SERVICOS PROFISSIONAIS DE LIMPEZALTDA

warehouse services at the facilities at Usina Termelétrica Portodo Pecém II. 1.31.2015 583 583

Mpx P IIRIP SERVIÇOS INDUSTRIAIS LTDA Specialist Labor for Pre-assembly of Metal Structures 9.24.2013 1.31.2014 7,500 107 4,163

Mpx P IISS&B CONSTRUTORA LTDA construction of the ash yard - 2nd yard 7/17/2014 4,866 3,480

Mpx P IISUPRICEL LOGISTICA LTDA Burnt Lime Shipping Services 8.9.2013 4.22.2015 6,112 2,306 4,826

Mpx P IITDG - TRANSMISSORA DELMIRO GOUVEIA S/A Connection Bay 9.22.2011

Notdetermined 1,020 926

Mpx P IIENVIRONMENTAL COMPENSATION Semace 9.5.2008


ITAQUIMABE Construction of UTE-EPC 1.27.2008 Indefinite 144,144.00 5,960.00 2,738.00

ITAQUITecnometal Supply of coal conveyor transportation system 7.24.2009 7.31.2014 130,757.00 31,967.00 27,926.00

ITAQUIGuimar Engenharia Works management services 5.7.2010 7.31.2014 5,956.00 51.00 171.00

ITAQUICarbomil Supply of Burnt Lime 1.1.2012 7.6.2015 30,000.00 26,798.00 26,798.00

ITAQUIEMS Silvestrini Maintenance, Industrial Cleaning and Industrial Support 1.1.2012 6.30.2014 13,342.00 1,208.00 2,641.00

ITAQUIAvipam Provision of passenger tickets 4.9.2012 6.30.2014 831.00

ITAQUIBanco Bankpar Provision of passenger tickets 5.1.2012 12.31.2013 1,349.00 258.00 258.00

ITAQUISulconsult

Services monitoring the final stage of decommissioning andpreoperation of the plant 5.31.2012 1.19.2013 1,617.00 19.00 19.00

ITAQUIMCE Engenharia Commissioning assistance services 7.1.2012 3.8.2013 8,984.00 81.00 81.00

ITAQUI Safety Consultoria Empresarial Emergency safety services combating fires 7.1.2012 4.24.2013ITAQUI

Só Saúde First aid and healthcare management services 7.1.2012 6.30.2013 856.00ITAQUI

Voz Telecom External lighting network, CFTV and ESS system 7.25.2012 4.4.2014 2,499.00 214.00 214.00ITAQUI

Terra Plan Com.e Serviços Supply of diesel oil for generators and luminaires 8.1.2012 1.9.2013 558.00 379.00 379.00ITAQUI

Terra Plan Com.e ServiçosCoal stacking service during unloading and technical supportfor fuel and waste areas 8.10.2012 3.1.2014 2,845.00 82.00 1,769.00

ITAQUIIluminar Comércio e Serviços Ltda

Installation services for cathode protection system for pipingand tanks 9.21.2012 2.12.2013 1,018.00 48.00 48.00

ITAQUIFortal Serviços de Segurança Armed security and surveillance services 9.24.2012 3.24.2014 5,275.00 8.00 286.00

ITAQUIPetroleo Sabba Supply of diesel oil 12.19.2012 8.31.2014 19,325.00

ITAQUINova Aliança Locação de Veículos Personnel Transportation Services 12.25.2012 8.31.2015 3,843.00 818.00 1,255.00

ITAQUIMAQMIX

Support for maintenance of the seawater clarification plantand pumping station inside UTE Itaqui 1.1.2013 9.18.2013 1,491.00 5.00

ITAQUI CONSULTORIA PLANEJAMENTO E ESTUDOSAMBIENTAIS Monitoring of water quality 2.1.2013 2.28.2014 904.00 173.00 248.00

ITAQUIE ON GLOBAL COMMODITIES Supply of coal 3.1.2013 1.31.2015 114,746.00 94,064.00

ITAQUISERGIO BERMUDES ADVOGADOS

Legal assistance for litigation involving Tecnimont/Efacecrelated to the termination of the EPC with Mabe 4.15.2013 1.31.2015 911.00

ITAQUISEMPRE VERDE SERV. E CONSTR. CIVIL Technical management of agricultural hub 5.20.2013 5.19.2014 522.00 79.00

ITAQUISEMPRE VERDE SERV. E CONSTR. CIVIL

Recovery of degraded areas and preventive and correctivemaintenance of possible degraded areas around the plant. 7.21.2013 4.14.2015 1,914.00

ITAQUIRH Global Specialist outsourced labor services 9.2.2013 7.21.2014 1,019.00 309.00 520.00

ITAQUIECOSOFT

Maintenance and operation of the automatic air qualitymonitoring and meteorology network 10.1.2013 4.14.2015 697.00 374.00 400.00

ITAQUIOGMO

Collective agreement with trade unions of dockers, weightmaster and porters 12.5.2013 9.30.2015 750.00 706.00 750.00

ITAQUIMONSERTEC

Procurement of services for the assembly of scaffolding,installation, paintwork and industrial and civil treatment. 1.1.2014 12.4.2015 6,000.00 4,730.00 6,000.00



71

Company Supplier Subject matter of contract Signature Term

Totalcontracted

on March 31,2014

Balance ofcontract

March 31,2014

Balance ofcontract

December 31,2013

ITAQUIAtlas Copco Brasil

Maintenance of Atlas Copco compressors through the totalmaintenance plan 2.25.2014 4.24.2017 664.00 664.00

PecémIMabe Construction of UTE-EPC 1.27.2008 Indefinite 2,633,962 25,817 104,527

PecémIMabe/SEMACE Environmental compensation 05.092008 Indefinite 713 713 3,584

PecémIConsulgal Portugal Owner's engineering 12.20.2007 2.20.2013 14,004 746 1,741

PecémIOther Services/Materials Other Indefinite 560,541 191,463 155,594

PecémIOther Operating Leasing Other Indefinite 14,352 11,261 11,026

PecémICarbomil Lime 6.2.2010 6.2.2015 11,910 8,363 11,372

PecémIICAL Lime 9.23.2011 8.23.2013 21,950 21,897 21,950

PecémICogerh Raw Water 10.28.2010 4.30.2019 87,120 73,446 75,025

PecémIEstre Ambiental Solid Waste 6.21.2011 5.21.2026 66,764 66,764 66,562

PecémICAGECE Effluent 11.10.2011 10.10.2031 161,857 155,243 49,708

PecémIEDP Comercializadora Energy for sale Other Indefinite 165,555 26,525

PecémIMPX Comercializadora Energy for sale Other Indefinite 39,427 21,201

PecémIBTG Energia Energy for sale Other Indefinite 44,865 44,865

PecémIOther Coal Other Indefinite 177,906 112,215

UTE Parnaíba IIINITEC Energia S.A. Acquisition of 2 (two) turbo generators 8.20.2012 12.19.2013 67,861

UTE Parnaíba IIINITEC Energia S.A. EPC 8.15.2011 2.2.2014 913,300 539,425 539,425

UTE Parnaíba IIHidroinga Artesian Wells WELL ENGINEERING 3.25.2012 4.29.2014 1,578 21 21

UTE Parnaíba IIBrasilis Kaduna Consultancy services 2.17.2012 4.16.2013 1,000 352 352

UTE Parnaíba IIDesga Ambiental Industria e Comércio Water intake and disposal system 8.1.2012 10.31.2013 20,763 9,789 9,789

UTE Parnaíba IIDesga Ambiental Industria e Comércio

Full and complete implementation of the water intake anddisposal system 8.1.2012 5.31.2014 42,206 41,911 42,206

UTE Parnaíba IIGeneral Electric Company Acquisition of 2 (two) turbo generators 8.20.2012 12.19.2013 61,424 9,920 9,920

UTE Parnaíba IIHidroinga Artesian Wells Planning and construction of two deep cased wells 11.30.2012 4.29.2014 3,605 104 509

UTE Parnaíba IICONEL CONSTRUCOES E ENGENHARIA LTDA Construction of the well interconnection system 3.21.2013 5.31.2014 12,162 2,981 3,736

UTE Parnaíba II HATCH CONSULTORIA E GERENCIAMENTO DEEMPREENDIMENTOS LTDA

Development of the detailed project of the systeminterconnecting 04 wells to the 03 water tanks of the well 3.18.2013 1.17.2014 1,756 265 265

UTE Parnaíba IIARM CONSULTORIA EM SEGURANCA LTDA -PREVINE

Consultancy for occupational safety and the environment inaudits of companies working on the construction of UTEParnaíba II 5.21.2013 5.20.2014 4,568 1,211 1,851

UTE Parnaíba IIRH GLOBAL Procurement of specialist labor 7.24.2013 7.23.2014 1,930 753 960

UTE Parnaíba IILBB TRANSPORTE

Extension and completion of effluent disposal ducts in theriver alongside the plant 10.15.2013 4.14.2014 1,841 176 1,300

UTE Parnaíba IIGuimar Engenharia Engineering consultancy 9.1.2013 2.29.2016 3,040 1,878 2,512

UTE Parnaíba IISTEAG Energy Engineering consultancy 9.1.2013 2.29.2016 6,504 3,297 4,748

UTE Parnaíba IIE M S Silvestrini

Preventive, predictive and corrective industrial and electricaland mechanical maintenance of equipment 1.1.2014 4.3.2015 836 739

UTE Parnaíba IIVIP Vigilância Unarmed security and property protection services 1.1.2014 8.9.2015 998 916

UTE Parnaíba IIBiota Projetos Biotic monitoring of parnaiba 1.1.2014 8.9.2018 454 425

UTE Parnaíba IGE International GE Turbina e assistencia 5.30.2011 1.18.2014 397,986 334,792 334,792

UTE Parnaíba IDURO Felguera EPC 5.30.2011 5.3.2013 468,030

UTE Parnaíba IDURO Felguera EPC and Turbine and technical assistance 5.30.2011 10.31.2013 586,827 290,726 290,726

UTE Parnaíba IDURO Felguera Siemes technical assistance 5.30.2011 10.31.2013 24,687

UTE Parnaíba IEcosoft Air Monitoring Station acquisition 6.1.2011 9.30.2013 803 23 23

UTE Parnaíba I Souza, Cescon, Barrieu, Flesch Teixeira dos SantosAdvogados Services related to legal and corporate advice. 12.1.2011 12.31.2012 550 486 486

UTE Parnaíba IKAERCHER e BAGGIO Provision of legal and agency services before ANEL. 6.1.2011 10.30.2012 605 480 480

UTE Parnaíba ILara Pontes e Nery Advogados Provision of legal services 7.2.2012 12.31.2014 1,124 234

UTE Parnaíba IEmbratel Provision of dataplus services and access to Primelink 8.1.2012 7.31.2015 711 384 447

UTE Parnaíba IEmbratel Provision of Primelink services 8.1.2012 7.31.2015 1,002 131 158

UTE Parnaíba IBiota Projetos e Consultoria Ambiental Biotic Monitoring 8.10.2012 8.9.2018 1,081 443 1,014

UTE Parnaíba IALBUQUERQUE PINTO ADVOGADOS Tax Legal advisory services 9.11.2012 12.31.2014 550 480 480

UTE Parnaíba IBANCO BANKPAR S.A Air tickets, flights and vehicle rental 4.20.2013 4.19.2015 2,718 2,718 2,718

UTE Parnaíba IBESSA & BARREIRA ADVOGADOS Specialist legal advisory services for environmental matters 1.3.2011 12.31.2013 560 532 532

UTE Parnaíba IGASMAR Distribution system operation and maintenance 12.17.2012 12.16.2027 57,838 22,682 2,946

UTE Parnaíba IEIG / COMPASS

Consultancy and management services for the sale ofelectricity at the ACL - energy sales 1.24.2011 3.24.2016 743 91 145

UTE Parnaíba IELETRONORTE Maintenance and operation services - in sectioning bay 3.21.2013 3.20.2014 1,571 67 68

UTE Parnaíba IELETRONORTE Maintenance and operation services - in connection bay 3.21.2013 3.20.2015 1,881 732 981

UTE Parnaíba IEMS SILVESTRINI

Preventive, predictive and corrective industrial and electricaland mechanical maintenance of equipment 4.4.2013 4.3.2015 1,664 772 1,931

UTE Parnaíba IFACULDADES CATOLICAS Design of new business model for trading energy in ACL 2.5.2013 2.4.2015 1,395 196 610

UTE Parnaíba IINMED BRASIL

Development of the Healthy Children, Healthy Future projectin Santo Antonio dos Lopes and Capinzal 12.6.2011 2.5.2015 693 245 245

UTE Parnaíba ILOBO E DE RIZZO Legal advisory services 1.19.2011 12.31.2014 770 481 485

UTE Parnaíba IM CARTAXO LACERDA Procurement of specialist labor 6.3.2013 6.2.2015 723 386 952

UTE Parnaíba IPARNAÍBA GÁS NATURAL Natural gas acquisition 1.1.2013 12.31.2027 371,917 13,937 106,968

UTE Parnaíba IBPMB PARNAÍBA Leasing of leased capacity by lessors to lessee 2.1.2013 1.31.2028 434,820 174,405 279,059

UTE Parnaíba IRH GLOBAL CONSULTORIA E ASSESSORIA LTDA Specialist services: outsourced labor 7.24.2013 7.23.2014 1,129 623 738

UTE Parnaíba IAGUIAR LOCAÇÃO Worker transportation service 4.18.2013 4.17.2014 642 61 157

UTE Parnaíba IVIP VIGILANCIA Unarmed security and property protection services 8.10.2013 8.9.2015 1,431 957 2,234

UTE Parnaíba I

INST. AYRTON SENNA

Project implementing management program for correction ofschool flow and management in municipal schools of SantoAntônio dos Lopes and surrounding areas 6.18.2013 1.30.2017 2,121 2,121 2,121

8,308,908 2,571,068 2,318,566



72

(*) The figures presented include commitments undertaken by the subsidiary in conjunction withPecém Geração de Energia S.A, to an amount equal to the Company's percentage interest(50%).

(**) The environmental compensation amounts are being included as and when the constructioncosts are incurred.

(***) Refers to the purchase and sale of energy from several suppliers and with several clients forthe period between 2014 and 2024, subject to fixed prices and volumes. These purchase andsale prices are not therefore subject to changes in the energy sector.

26 Insurance coverage

It is the policy of the Company and its direct and indirect subsidiaries to take out insurance coveragefor the assets subject to risk at amounts considered by management sufficient to cover any incidents,considering the nature of their activity. The policies are in force and the premiums have been paid.The Company considers its insurance coverage is consistent with other companies of similar sizesoperating in the sector.

At March 31, 2014 and December 31, 2013, the main risks covered were:

Consolidated

March 31,2014

December 31,2013

Material damages 11,846,576 12,432,201Civil liability 249,000 269,000

27 Segment reporting

Segment information should be prepared in accordance with CPC 22 (Segment reporting),equivalent of IFRS 8, and should be presented with respect to the Company and its subsidiaries'business that was identified based on its management structure and on internal managementreporting, provided to the main manager for decision-taking purposes.

Company Management takes its decisions based on four core business segments: energy generation,energy sales, supplies and corporate, which are subject to risks and remuneration managed bycentralized decisions.

The current activity is managed by a main manager, who allocates and evaluates the operationalsegment's performance. In the case of the Company, this manager is the CEO.



73

As the ventures move forward, Management aims to re-evaluate business segments to provide themarket with real and quantitative information.

March 31,2014

Electricitygeneration Supplies Corporate Others

Eliminationsand

adjustmentsTotal

consolidated

Balance sheet - assets 8,075,018 5,156 4,600,011 312 (3,208,214 ) 9,497,656

Current 579,100 308 49,301 9 639,157

Cash and cash equivalents 76,810 288 19,694 9 96,801Trade receivables 344,704 344,704SecuritiesInventory 78,345 78,345CCC subsidies receivable 46,935 46,935Gains on derivative transactionsSecured deposits 39 39Other current assets 32,306 20 29,568 72,334

Non-current 7,495,917 4,848 4,550,710 303 (3,208,214 ) 8,858,499

Long-termRelated parties 36,340 1,119,345 (763,937 ) 391,748CCC subsidy receivable 24,617 24,617Deferred taxes 304,077 304,077Gains on derivative transactions 13,207 13,207Secured deposits 128,672 128,672Other non-current assets (16,173 ) 21 144,378 (136,110 ) (7,823 )

Investments 3,258,396 (2,301,065 ) 957,331

Property, plant and equipment 6,822,787 781 12,773 303 6,836,644

Intangible assets 192,543 2,610 210,026

Deferred charges 3,055 4,046 (7,101 )

December 31,2014


Eliminationsand

adjustmentsTotal

consolidated

Balance sheet - liabilities 8,085,457 5,156 4,600,014 312 (3,193,283 ) 9,497,656

Current 1,426,020 1,626,396 10 3,052,426

Loans and financing 871,842 1,606,253 2,478,096Trade payables 332,873 5,312 1 338,185Losses on derivative transactionsRelated parties (1 )Debentures 169 169Other current liabilities 221,304 14,662 10 235,976

Non-current 4,105,351 10 572,132 505 (744,395 ) 3,933,603

Non-current liabilitiesLoans and financing 3,098,534 522,232 3,620,766Deferred taxes 12,444 12,444Related parties 989,797 10 36,700 505 (740,308 ) 286,704Debentures 5,356 5,356Losses on derivative transactionsOther non-current liabilities 4,576 7,843 (4,087 ) 8,331

Non-controlling shareholders 125,003 125,003

Shareholders' equity 2,554,087 5,146 2,401,485 (203 ) (2,573,890 ) 2,386,624



74

March 31, 2014


Eliminationsand

adjustmentsTotal

consolidated

Statement of operations

Net operating revenue 586,771 586,771

Cost of Goods and/or Services sold (494,605 ) (173 ) (494,779 )

Operating expenses (8,463 ) (28,324 ) (5 ) (36,791 )

Other operating income (12,091 ) 21,740 75 9,725

Equity in net income of subsidiaries (35,006 ) (7,361 )

Financial income (93,960 ) 8 (30,342 ) 0 (124,293 )

Provision for current and deferred taxes (3,837 ) (3,837 )

Non-controlling interest (1,414 ) 50 (1,365 )

Net income (loss) for the period (27,599 ) (116 ) (71,931 ) (4 ) 75 (71,931 )

December 31, 2013

Energygeneration Supplies Corporate Others Eliminations

Totalconsolidated

Balance sheet - assets 8,056,566 5,317 4,751,985 313 (3,149,193 ) 9,689,212

Current 596,950 477 141,242 10 747,842

Cash and cash equivalents 166,960 457 110,156 10 277,583Trade receivables 294,396 294,396SecuritiesInventory 78,376 78,376CCC subsidies receivable 30,802 30,802Gains on derivative

transactions 4,171 4,171Secured deposits 38 38Other current assets 26,416 19 26,878 62,477

Non-current 7,459,616 4,840 4,610,742 303 (3,149,193 ) 8,941,310

Long-termRelated parties 24,418 1,249,669 (746,067 ) 528,019CCC subsidy receivable 24,617 24,617Deferred taxes 302,327 302,327Gains on derivative

transactionsSecured deposits 118,606 118,606Other non-current assets (15,175 ) 21 214,734 (206,528 ) (6,947 )

Investments 3,130,978 (2,189,125 ) 941,853

Property, plant and equipment 6,805,744 773 12,634 303 6,819,454

Intangible assets 195,653 2,727 213,381

Deferred charges 3,427 4,046 (7,473 )



75

December 31, 2013

Energygeneration Supplies Corporate Others Eliminations

Totalconsolidated

Balance sheet - liabilities 8,065,730 5,317 4,751,987 313 (3,134,135 ) 9,689,212

Current 1,398,839 1,580,010 10 2,978,859

Loans and financing 845,930 1,562,211 2,408,142Trade payables 327,743 3,473 1 331,216Losses on derivative

transactionsRelated parties (1 )Debentures 112 112Other current liabilities 225,165 14,215 10 239,389

Non-current 4,156,224 22 703,232 501 (723,499 ) 4,136,479

Non-current liabilitiesLoans and financing 3,146,961 655,417 3,802,378Deferred taxes 9,591 - 9,591Related parties 995,147 22 34,489 501 (722,438 ) 307,720Debentures 5,239 5,239Losses on derivative

transactionsOther non-current liabilities 4,524 8,087 (1,060 ) 11,551

Non-controlling shareholders 123,633 123,633

Shareholders' equity 2,510,668 5,295 2,468,744 (198 ) (2,534,268 ) 2,450,242

December 31, 2013

Eliminations TotalEnergy

generation Supplies Corporate Othersand

adjustments consolidated

Statement of operations

Net operating revenue 1,438,831 1,438,831

Cost of goods and/or servicessold (1,506,234 ) (812 ) (1,507,046 )

Operating expenses (43,375 ) (12 ) (123,701 ) (173 ) (167,261 )

Other operating income (24,839 ) (14,403 ) 557 (38,684 )

Equity in net income of subsidiaries (469,179 ) (153,012 )

Financial income (285,315 ) 32 (220,773 ) (40 ) (506,096 )

Provision for currentand deferred taxes 103,248 (114,400 ) (11,152 )

Non-controllinginterest 1,729 238 1,966

Net income (loss) for the period (315,957 ) (554 ) (942,456 ) (212 ) 557 (942,455 )



76

Geographic data

The four segments described above are located in three different geographical areas, as summarizedbelow:

North and North-east System

The North and North-east System consists of the plants of Itaqui Geração de Energia S.A., Porto doPecém Geração de Energia S.A., Pecém II Geração de Energia S.A., Parnaíba Geração de EnergiaS.A., Parnaíba II Geração de Energia S.A., Parnaíba III Geração de Energia S.A., Parnaíba IVGeração de Energia S.A., Parnaíba V Geração de Energia S.A., Tauá Geração de Energia Ltda., TauáII Geração de Energia Ltda. and Amapari Energia S.A.

The coal-fired Itaqui thermal power plant is located in the proximity of Itaqui, in Maranhão State. Ithas an energy generation capacity of 360 MW and has energy sale orders as from 2012.

The pulverized coal-fired power plants Porto do Pecém Geração de Energia S.A. and Pecém IIGeração de Energia S.A. are located in the region of Porto do Pecém, Ceará State, with installedcapacity of 720 MW and 360 MW respectively.

Tauá and Tauá II are also located in the State of Ceará, and are solar energy generation companieswith an environmental license for the joint generation of 5 MW each, where two 1-MW plants havealready been built.

Amapari, an Independent Energy Producer (PIE) in the isolated system, is a diesel fuel thermalpower plant located in the municipality of Serra do Navio, Amapá State, with an installed capacity of23 MW.

The Parnaíba complex, a natural gas thermal power plant, is strategically located in block PN-T-68of the Parnaíba Basin, in Maranhão State. The venture has been licensed by the Maranhão Stateenvironment Department (SEMA) and has a forecast total capacity of 3,722 MW. The five Parnaíbacompanies are located in this complex.

South - Southeast System

The Seival Sul mine, located in the municipality of Candiota, Rio Grande do Sul State, has provenreserves of 152 million tons of coal. The thermoelectric ventures of Sul Geração de Energia and UTESeival are going to be built in this area. These power plants will have an installed capacity of 727 MWand 600 MW respectively, and will guarantee the supply of fuel for 30 years by integrating with theSeival Sul mine.



77

28 Subsequent events

(i) Capital increase, the restructuring of debts and sale of Pecém II

On May 12, 2014 ENEVA will launch a private capital increase at the level of ENEVA of up toR$ 1,500,000,000.00 (one billion, five hundred million Reais) divided in two phases:

A cash only private capital increase of up to R$ 316,500,000.00 (three hundred, sixteen million andfive hundred thousand Reais) at a price per share of R$ 1,27 (one real and twenty seven centavos)which represents ENEVA's closing stock trading price at the BM&FBOVESPA on May 9, 2014, asapproved by ENEVA's Board of Directors of the Company on the same date (May 9, 2014), wherebyE.ON has committed to subscribe for new ENEVA shares in an amount of R$ 120,000,000.00 (onehundred and twenty million Reais), subject to certain conditions precedent ("Phase I CapitalIncrease"); and

An asset and cash private capital increase of up to R$ 1,500,000,000.00 (one billion and fivehundred million Reais) less the amount raised in Phase I Capital Increase, to be submitted forapproval to ENEVA's shareholders meeting upon fulfilment of certain conditions precedent, for aprice to be fixed in accordance with Brazilian law and to be defined by ENEVA`s Board of Directors,whereby E.ON has committed to subscribe for new ENEVA shares pro rata to its currentshareholding in ENEVA up to an amount of R$ 450,000,000.00 (four hundred fifty million Reais),provided that such commitment may be fulfilled through the contribution of part of or all of E.ON'sdirect or indirect shareholding in Pecém II Geração de Energia S.A. ("Pecém II"), following thepotential sale of Pecém II to E.ON, as described below). ("Phase II Capital Increase" and, togetherwith Phase I Capital Increase, the "Capital Increases"). The subscription by E.ON is limited to theextent that E.ON's participation in ENEVA shall not exceed 49.9%.

As a preliminary step to Phase II Capital Increase, ENEVA will dispose of between 50% and 100% ofPecém II ("Pecém II Sale") via a bidding process ("Bidding Process"). E.ON has committed toprovide a backstop guarantee whereby it would indirectly acquire up to 50% (fifty percent) of theshares of Pecém II and a certain part of the intercompany loan provided by ENEVA to Pecém II,through a special purpose vehicle to be equally held by E.ON and ENEVA, at fair market value to beassessed in the context of the Bidding Process, and confirmed by way of a valuation report byDeloitte Touche Tohmatsu ("Pecém II Price"), provided that E.ON's commitment shall not exceedR$ 400,000,000.00.00 (four hundred million Reais) and the fulfilment of certain conditionsprecedent, including that a more attractive offer is not present by a third party in the context of theBidding Process.

Additionally, a long-term financing to Pecém II will be provided by financial institutions ofR$ 150,000,000.00 (one hundred fifty million Reais) subject to obtainment of consents andapprovals under existing financing agreements of the ENEVA group ("Pecem II Long-termFinancing").

Subject to certain conditions precedent, the financial institutions have committed to (a) bridgefinancing to ENEVA of R$ 100,000,000.00 (one hundred million Reais) to be repaid with theproceeds from the Pecem II Long-term Financing; and (b) a R$ 600,000,000.00 (six hundredmillion Reais) minimum roll down of their outstanding holding credit against ENEVA to theCompany's subsidiaries and to a five-year maturity extension of the remaining holding loans atENEVA level, with amortization starting in June, 2017 ("Debt Restructuring").



78

The Capital Increases, the Debt Restructuring and the Pecém II Sale are aimed at providingadditional cash to the ENEVA group and enhance its capital structure and balance sheet.

The Company will keep its shareholders and the market informed of the progress in theimplementation of the Capital Increases, the Pecém II Sale and the Debt Restructuring.

(ii) Aneel refused the petition for a provisional remedy - suspending the start of the contracts for thecommercialization of energy in the Regulated Environment of UTE Parnaíba II.

At a meeting held on May 13, 2014, the Directorate of the Agência Nacional de Energia Elétrica -Aneel refused the petition for a provisonal remedy - suspending the start of the contracts for thecommercialization of energy in the Regulated Environment (CCEARs) of the thermal electric powerstation Parnaíba II. A final decision on the question is still pending.

The Company is analysing alternatives, including legal measures, and will maintain its shareholdersand the market in general on any development of the situation.

* * *

Board of Directors

Jorgen Kildahl (CEO)Keith Plowman

Stein DaleAdriano Carvalhêdo Castello Branco Gonçalves

Ronnie Vaz MoreiraLuiz do Amaral de França PereiraRicardo Luiz de Souza Ramos

Luiz Fernando Vendramini Fleury

Executive Board

Fábio H. Bicudo (CEO and Investor Relations Officer)Frank Possmeier (Officer)

General Controller's Department Manager

Carlos Renato Rodrigues Peixoto

Accountant

Ana Paula Vergetti DinizCRC 087040/O-9

1Q14 Earnings Release

1

Economic and Financial Performance

1. Net Operating Revenues

In 1Q14, ENEVA recorded consolidated Net Operating Revenues of R$ 586.8 million vs R$ 196.1 million reported

in 1Q13. The increase in net revenues is mostly attributable to the beginning of commercial operations of Pecém

II in October 2013 and full-quarter operations of Itaqui and Parnaíba I.

Net revenues in 1Q14 are comprised largely by the revenues from the Regulated Market Power Purchase

Agreements (PPA) of Itaqui, Pecém II and Parnaíba I, which reached, respectively, R$ 159.1 million, R$ 147.1

million and R$ 268.1 million in the period.

The breakdown of operating revenues for 1Q14 is as follows:

Operating Revenues

(R$ million) Consolidated Itaqui Pecém II Parnaíba I Amapari Parnaíba II

Gross Revenues 656.6 176.7 164.5 298.3 16.9 0.2

Fixed Revenues 269.9 79.0 71.3 110.8 8.9 0.0

Variable Revenues 330.0 60.7 77.3 183.7 8.0 0.2

Adjustments from previous periods 0.0 0.0 0.0 0.0 0.0 0.0

Other Revenues 56.7 37.0 15.9 3.8 0.0 0.0

Deductions from Operating Revenues -69.8 -17.6 -17.4 -30.2 -4.6 0.0

Net Operating Revenues 586.8 159.1 147.1 268.1 12.3 0.2

2. Operating Costs

Operating Costs

(R$ thousands) 1Q14 1Q13

Personnel and Management (13,021) (5,313)

Fuel (227,875) (90,207)

Outsourced Services (35,914) (3,707)

Leases and Rentals (98,454) (15,440)

Energy Acquired for Resale (26,995) (172,766)

Other Costs (44,578) (7,919)

Transmission Charges (16,118) (8,553)

Compensation for Downtime (32,353) -

Other 3,894 634

Total (446,836) (295,352)

Depreciation and Amortization (47,942) (17,257)

Total Operating Costs (494,779) (312,609)


2

Operating Costs totaled R$ 494.8 million in 1Q14, impacted mainly by an increase of R$ 137.7 million in fuel

costs relative to the same period of the preceding year, due to the full-quarter operation of Itaqui and Parnaíba I

the beginning of commercial operations of Pecém II. All plants were dispatched by the ONS during the full

quarter. The fuel cost of R$ 227.9 million recorded in the quarter is divided into R$ 62.7 million incurred by

Itaqui, R$ 62.8 million incurred by Pecém II, R$ 85.0 million incurred by Parnaíba I and R$ 17.4 million by

Amapari.

The full-quarter operation of these plants also impacted the Outsourced Services account, which reached R$ 35.9

million in 1Q14, mainly due to higher costs with utilities, machinery and equipment repair, mechanical

maintenance service and technical consulting.

The Leases and Rentals account, which totaled R$ 98.5 million in the quarter, is comprised mainly by lease costs

incurred by Parnaíba I, according to its gas supply agreement (R$ 96.6 million).

The Other Costs account, which totaled R$ 44.6 million in 1Q14, is mainly composed by transmission charges

(TUST) and compensation for downtime of the power plants (unavailability charges).

In 1Q14, Itaqui, Pecém II and Parnaíba I had to reimburse discos for the energy not delivered by the difference

between their declared variable cost per MWh (CVU) and the spot price (PLD). In the quarter, these costs

amounted to R$ 5.5 million, R$ 14.0 million and R$ 12.9 million for Itaqui, Pecém II and Parnaíba I, respectively.

On January 07, 2014, Itaqui filed a lawsuit against Aneel questioning the penalties being charged on an hourly

basis, considering that the Regulated Market Power Purchase Agreements (PPAs) provide for using the 60-month

rolling average availability. On January 24, 2014, a Federal Court granted an injunction to Itaqui determining

that unavailability charges be calculated based on the 60-month rolling average. In the cases of Pecém II and

Parnaíba I, unavailability charges are still being measured and charged on an hourly basis. Downtime charges

are calculated based on the difference between the actual production of the generating units and the authorized

capacity discounting forced and programmed stoppage rates, internal consumption of the units and grid losses.

3. Operating Expenses

In the quarter, Operating Expenses, excluding Depreciation & Amortization, amounted to R$ 36.0 million, a 6.2%

reduction when compared to 1Q13. In the same period, the holding company posted Operating Expenses,

excluding Depreciation & Amortization, of R$ 27.8 million, compared to the R$ 23.3 million recorded in 1Q13.

During the period, the IPCA inflation index rose by 6.15%.

Operating Expenses Consolidated

(R$ thousands) 1Q14 1Q13 %

Personnel (15,292) (20,297) -24.7%

Outsourced Services (17,358) (14,062) 23.4%

Leases and Rentals (1,528) (1,677) -8.9%

Other Expenses (1,845) (2,354) -21.6%

Total (36,023) (38,391) -6.2%

Depreciation and Amortization (768) (638) 20.4%

Total Operating Expenses (36,791) (39,029) -5.7%


3

Operating Expenses Holding


Personnel (13,287) (11,121) 19.5%

Stock Options 3,511 5,714 -38.5%

Outsourced Services (11,925) (9,796) 21.7%

Leases and Rentals (1,348) (1,080) 24.8%

Other Expenses (1,239) (1,260) -1.7%

Total (27,799) (23,258) 19.5%


Total Operating Expenses (28,324) (23,712) 19.5%

The main changes are as follows:

Personnel: Personnel expenses totaled R$ 15.3 million in 1Q14, compared to R$ 20.3 million reported in

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

Reduction in stock option-related expenses resulting from a decrease in both the number of

options outstanding and the share price since 1Q13 (-R$ 2.2 million);

Headcount reduction in Parnaíba I and II (-R$ 3.1 million);

Outsourced services: Expenses with outsourced services in 1Q14 totaled R$ 17.4 million, up R$ 3.2

million in relation to 1Q13. The highlights are:

Decrease in expenses with shared services in the holding company, resulting from the

elimination of EBX's service structure (-R$ 4.2 million);

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

company (+R$ 4.8 million);

Increase in third-party services at Parnaíba II, aimed mainly at expediting the construction of

the plant (+R$ 1.5 million)

4. EBITDA

In 1Q14, ENEVA reported a positive EBITDA of R$ 103.9 million, mainly due to:

Beginning of commercial operations of Pecém II on Oct 18, 2013;

Full-quarter operations of Itaqui and Parnaíba I; and

Improved operational performance of the coal plants, with resulting decrease on operating costs per

MWh generated.


4

5. Net Financial Result

Financial Result


Financial Income 50,517 12,701 297.7%

Monetary variation 21,368 3,889 449.5%

Revenues from financial investments 19,239 9,876 94.8%

Marking-to-market of derivatives 9,036 (3,018) -399.5%

Settlement of derivatives - 1,575 -100.0%

Present value adjust. (debentures) - (251) -100.0%

Other 874 631 38.5%

Financial Expenses (174,811) (90,528) 93.1%

Monetary variation (16,012) (2,263) 607.5%

Interest expenses (149,417) (58,088) 157.2%

Settlement of derivatives - (634) -100.0%

Marking-to-market of derivatives - (1,616) -100.0%

Costs and Interest on Debentures (211) (213) -0.6%

Other (9,170) (27,714) -66.9%

Net Financial Result (124,293) (77,827) 59.7%

In 1Q14, ENEVA recorded net financial expenses of R$ 124.3 million, compared to net expenses of R$ 77.8

million in 1Q13, impacted mainly by the increase in interest expenses in the holding company (+R$ 52.1 million),

Itaqui (+R$ 15.0 million); Pecém II (+R$ 33.1 million) and Parnaíba I (+R$ 6.5 million). Given the end of the

grace period for interest payments on the Pecém II and Parnaíba I long-term debts, interest due, which until

then was mostly capitalized, started being expensed. Higher interest expenses at the holding level are related to

the growth in debt motivated by increased cash needs in the subsidiaries resulting from energy acquisition costs

due to delays in the startup of the power plants and unavailability penalties.

6. Equity Income

The company reported a negative equity income of R$ 7.4 million, mainly impacted by losses incurred by Pecém

I.

The following analysis considers 100% of the projects. On March 31, 2014, ENEVA held an interest of 50.0% in

Pecém I, 50% in Eneva Participações, 52.5% in Parnaíba III and Parnaíba IV, and 18.2% in Parnaíba Gás Natural

(formerly, OGX Maranhão).


5

6.1. Pecém I

INCOME STATEMENT - Pecém I

(R$ million) 1Q14 1Q13 %

Net Operating Revenues 283.7 207.5 36.7%

Operating Costs(265.7)

(363.1) -26.8%

Operating Expenses (4.7) (3.9) 20.8%

Net Financial Result(58.8) (28.7)

104.7%

Earnings Before Taxes (45.5) (188.2) -75.8%

Taxes Payable and Deferred 15.5 64.0 -75.8%

NET INCOME (30.0) (124.2) -75.8%

EBITDA 48.8 (143.4) -134.0%

Net revenues for Pecém I in the quarter amounted to R$ 283.7 million, comprised of:

Fixed revenues amounting to R$ 151.1 million;

Variable revenues amounting to R$ 103.1 million;

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

in the concession contract, totaling R$ 64.4 million;

Taxes on revenues amounting to R$ 34.9 million.

Operating Costs, excluding depreciation and amortization, totaled R$ 230.2 million, a 33.7% decrease compared

to the same period of last year, mostly attributable to the reduction in energy acquisition costs. The second

generating unit of Pecém I was granted authorization for commercial operations in May 2013 and therefore 1Q13

figures were impacted by costs incurred to meet contractual obligations for this unit.

Fuel costs in the quarter reached R$ 93.4 million, split mainly between coal (R$ 83.4 million) and diesel oil

(R$ 5.3 million) costs.

Operating costs in 1Q14 were also inflated by costs associated with power trades resulting from the annual

revision of the plant's firm energy, provided for in the concession contract, amounting to R$ 57.0 million. Every

year, the ONS resets the plant's firm energy based on the performance of the past 60 months. If the average

availability rate falls below the value originally declared, the plant's firm energy is reduced and the difference has

to be covered by a free market collateral contract. The plant can then sell in the spot market the energy

associated with the collateral contract, maintaining only the collateral component of the contract. In 1Q14, given

high spot prices, gross revenues resulting from this sale amounted to R$ 64.4 million.

Other Costs totaled R$ 55.0 million in 1Q14. This account is composed mainly by transmission charges (R$ 14.0

million) and compensation for downtime or unavailability charges (R$ 40.6 million).


6

In 1Q14, Pecém I recorded a positive EBITDA of R$ 48.8 million. Net financial expenses amounted to R$ 58.8

million, compared to R$ 28.7 million in 1Q13, impacted mainly by increased interest expenses due to interest on

long-term financing no longer being capitalized with the start-up of operations, interest on intercompany loans,

higher losses on monetary variation, due to differential exchange rates on hedging swaps and the reversal of

values previously booked to Shareholders' Equity due to the ineffectiveness of hedge accounting.

Pecém I reported a net loss of R$ 30.0 million in 1Q14.

6.2. Eneva Participações S.A. (formerly MPX/E.ON Participações)

6.2.1. Holding Operating Expenses

Operating Expenses Holding ENEVA Participações S.A.


Personnel (6,022) (8,894) -32.3%

Outsourced Services(2,055)

(1,721) 19.4%

Leases and Rentals (576) (909) -36.7%

Other Expenses (251) (393) -36.2%

Total (8,903) (11,917) -25.3%


Total Operating Expenses (8,924) (11,919) -25.1%

In 1Q14, Operating Expenses, excluding Depreciation & Amortization, amounted to R$ 8.9 million, a decrease of

R$ 3.0 million compared to 1Q13, mostly attributable to reduced personnel expenses.

6.2.2. Parnaíba III

INCOME STATEMENT - Parnaíba III



Operating Costs (63.4) (67.1) -5.5%


Net Financial Result (2.7) (0.8) 263.5%

Other Revenues/Expenses (0.8) - -

Earnings Before Taxes 9.3 (31.7) -129.3%

Taxes Payable and Deferred (3.1) 10.8 -129.2%

NET INCOME 6.1 (20.9) -129.3%

EBITDA 14.4 (30.9) -147%


7

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

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

operations of its second generation unit, with 7MW of installed capacity. Thereby, in 1Q14, the installed capacity

of the plant reached 176MW, complying with the total capacity contracted under the terms of the Regulated

Market power purchase agreement secured in the 2008 A-5 energy auction.

Net revenues in the quarter totaled to R$ 76.5 million, split between fixed revenues of R$ 24.9 million and

variable and other revenues amounting to R$ 60.2 million. Revenues in 1Q13 refer to the pass-through of

energy acquisition costs incurred to ensure compliance with the plant's energy supply agreements until the

authorization to start commercial operations.

Operational Costs reached R$ 63.4 million in the quarter, comprised mainly of:

Fuel - natural gas (R$ 19.1 million);

Lease costs, according to the gas supply agreement (R$ 29.1 million)

Energy acquisition costs incurred to meet contractual obligations until the start-up of the second generation

unit (R$ 2.4 million)

Unavailability costs (R$ 6.8 million).

In 1Q14, Parnaíba III recorded a positive EBITDA of R$ 14.4 million.

Net financial expenses amounted to R$ 2.7 million, mainly impacted by interest expenses.

Parnaíba III reported a net income of R$ 6.1 million in 1Q14.

6.2.3. Parnaíba IV

INCOME STATEMENT - Parnaíba IV


Net Operating Revenues 32.9 - -

Operating Costs (23.1) (0.0) -


Net Financial Result (1.2) (2.6) -52.4%

Other Revenues/Expenses (0.9) - -

Earnings Before Taxes 7.0 (2.7) -356.7%

Taxes Payable and Deferred (1.3) - -

NET INCOME 5.7 (2.7) -308.6%

EBITDA 10.3 (0.2) -6610.3%


8

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

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

signed a contract in the free market, for a five-year period, to supply 20 MWavg from December, 2013 until May,

2014 and 46MWavg from June, 2014 until December, 2018.

In 1Q14, Parnaíba IV recorded net revenues of R$ 32.9 million and operational costs amounting to R$ 23.1

million, impacted mainly by fuel costs - natural gas (R$ 6.8 million) and energy costs resulting from submarket

exposure (R$ 12.7 million). One should note that such exposure was partially hedged, with resulting revenues

accounted for in the ENEVA Trading arm.

Parnaíba IV reported an EBITDA of R$ 10.3 million in the quarter.

Net financial expenses totaled R$ 1.2 million, mainly impacted by debt interest.

In 1Q14, the plant reported a net income of R$ 5.7 million.

6.3. Parnaíba Gás Natural

In 1Q14, Parnaíba Gás Natural recorded net revenues of R$ 162.0 million, with a cumulative production of 378.6

million m3 of gas. EBITDA in the quarter reached R$ 133.8 million.

Parnaíba Gás Natural recorded a net profit of R$ 35.1 million in 1Q14.

Income Statement (Non audited) Parnaíba Gás Natural

(R$ thousand) 1Q14 1Q13

Operating Period(1) 90 days 65 days

Gas Production - in MMm3 (2) 378.6 83.5

Gross Operating Revenues 181,559 39,279

Deductions from Gross Revenue(3) (19,533) (4,522)

Net Operating Revenues 162,026 34,757

Production costs (3,712) (3,597)

Royalties, Special Part. And Government Part. (23,218) (2,718)

SG&A 126 (6,317)

Exploration Expenses (1,426) (37,355)

EBITDA 133,796 (15,230)

Depreciation and Amortization (38,332) (5,667)

Net Financial Income (41,216) (5,134)

Financial Income 2,669 1,729

Financial Expenses (43,191) (5,148)

Foreign Exchange (694) 3,717

Derivatives - (5,432)

Earnings Before Taxes 54,248 (26,031)

IR (14,042) 6,306

CSLL (5,057) 2,271

Net Income 35,149 (17,454)

(1) Date of closing for book values: 25th day of the month.

(2) Gas production related to Parnaíba Gás Natural's participation in the blocks (70%).

(3) Deductions from Revenues: taxes such as PIS/COFINS/ICMS.


9

7. Net Income

In 1Q14, ENEVA reported a net loss of R$ 71.9 million, impacted mainly by interest expenses related to the end

of the grace period of the long-term project loans and higher leverage at the holding company.

INCOME STATEMENT



Operating Costs (494.8) (312.6) 58.3%

Operating Expenses (36.8) (39.0) -5.7%

Net Financial Result (124.3) (77.8) 59.7%

Equity Income (7.4) (83.5) -91.2%

Other Revenues/Expenses 9.7 (1.0) -1061.8%

Earnings Before Taxes (66.7) (317.9) -79.0%

Taxes Payable and Deferred (3.8) 60.8 -106.3%

Minority Interest (1.4) 6.2 -122.2%

NET INCOME (71.9) (250.9) -71.3%

EBITDA 103.9 (137.6) -175.5%

8. Debt

As of March 31, 2014, consolidated gross debt amounted to R$ 6,098.9 million, a reduction of 2.7% in relation to

the amount recorded on December 31, 2013.

Consolidated debt profile (R$ million)

The

balance of short-term debt at the end of March, 2014 was R$ 2,478.1 million, or R$ 70.0 million higher than the

amount recorded on December 31, 2013.

R$ 871.8 million out of the total balance of short-term debt are allocated in the projects (vs. R$ 845.9 million on

December 31, 2014), as follows:

R$ 290.3 million refer to the current portion of the long-term debts of Itaqui, Pecém II and Parnaíba I;

R$ 87.3 million refer to bridge loans to Parnaíba I. The outstanding balance will be paid-off in

installments, which started in October, 2013;

R$ 494.2 million refer to bridge loans to Parnaíba II.

2,47841%3,621

59%

Short Term Long Term

2,12835%

3,97065%

Working Capital Project Finance


10

The remaining balance of short-term debt, amounting to R$ 1,606.3 million, is allocated in the holding company

(vs. R$ 1,562.2 million on December 31, 2013). During 1Q14, ENEVA holding raised additional R$ 80 million to

cover project investment and working capital needs.

In March 2014, following the conclusion of a R$ 250 million capital increase at Parnaíba Gás Natural - PGN, and

the approval by its shareholders for the issuance of R$ 745 million in non-convertible debentures, PGN paid off a

R$ 200 million debt with ENEVA. This debt was contracted in the 4Q13, in light of the early termination triggered

by OGX's judicial recovery procedure, the Company raised further R$ 200.0 million to pay-off 1/3 of the debt

held by Parnaíba Gás Natural - PGN (formerly OGX Maranhão), thus replacing the banks as a creditor to PGN.

According to the new IFRS standards, Pecém I is no longer included in the consolidated statements. As of March

31, 2014, the gross debt of Pecém I (50%) amounted to R$ 1,048.4 million.

At the end of march, 2014, the average cost of debt stood at 10.20% p.a. and the average maturity at 4.2

years.

Debt Maturity Profile* (R$ million)

*Values include principal + capitalized interest + charges and exclude outstanding convertible debentures.

Net debt in 1Q14 amounted to R$ 6,002.5 million, 1.2% higher than the value reported on December 31, 2013.

Consolidated Cash and Cash Equivalents totaled R$ 96.4 million at the end of March, 2014, a decrease of

R$ 181.2 million as compared to the balance in December 31, 2013.

96,4871,8

844,3

325,7 282,0

2.168,7

Project Finance

1.606,3Working Capital

Cash & CashEquivalents

2014 2015 2016 2017 From 2018 on


11

Consolidated Cash and Cash Equivalents (R$ million)

277,6

571,9

80,0

156,5 104,8

521,6

350,9

96,4

Cash and CashEquivalents

(4Q13)

Revenues Debt Raised IntercompanyLoan

CAPEX Operating Costsand Expenses

Debt Service Cash and CashEquivalents

(1Q14)

FEDERAL PUBLIC SERVICECVM – BRAZILIAN SECURITIES COMMISSIONITR – Quarterly Information Corporate LegislationCOMMERCIAL AND INDUSTRIAL COMPANIES AND OTHER - as of 3/31/2014

02123-7 ENEVA S/A 04.423.567/0001-21

20.01 - OTHER INFORMATION CONSIDERED SIGNIFICANT TO THE COMPANY

27/05/2014 13:01:22 Page: 1

Pursuant to the Company's Bylaws, the company, its shareholders and managers undertake tosettle through arbitration any and all disputes between them arising from, or in connection with,the application, validity, effectiveness, interpretation, violation or effects of the rules contained inBrazilian Corporation Law, the Company's By-Laws, regulations issued by the BrazilianMonetary Council, the Brazilian Central Bank and the Brazilian Securities Commission (CVM),and any other regulations applicable to the capital market in general, as well as those containedin the New Market Regulations, the Regulations of the Market Chamber of Arbitration and NewMarket Agreement.

At March 31, 2014 the Company’s share capital consisted of 702,524,469 common sharesdistributed as follows:

CONSOLIDATED SHAREHOLDINGS OF CONTROLLING SHAREHOLDERSMANAGERS AND FREE FLOAT

Position at 3/31/2014

ShareholderNumber of Common

Shares(in units)

%Total Number of

Shares(in units)

%

Controlling Shareholder 434,005,449 61.78 434,005,449 61.78

Executives

Board of Directors 155,155 0.02 155,155 0.02

Executive Board 0 0.00 0 0.00

Audit Committee* - - - -

Treasury Stock 0 0.00 0 0.00

Other Shareholders 268,363,865 38.20 268,363,865 38.20

Total 702,524,469 100 702,524,469 100

Free Float 268,363,865 38.20 268,363,865 38.20

* At 3/31/2014 the Company did not have an Audit Committee.

The Company's capital was increased on 5/26/2011 by the Board of Directors' meeting held3/24/2011, which raised the number of shares from 136,692,680 to 136,720,840, as a result ofsubscription options being exercised.

The Company's capital was increased in February 2012 by the Board of Directors' meeting held2/29/2012, via the issuance of 9,633 new shares resulting from the conversion of 6,383 of the21,735,744 debentures issued by the Company on June 15, 2011. The number of Companyshares accordingly rose from 136,720,840 to 136,730,473.

The Company's capital was increased in March 2012 by the Board of Directors' meeting held3/21/2012, via the issuance of 984 new shares resulting from the conversion of 649 debenturesand the issuance of 7,040 new common shares, with no par value, resulting from the exercisingof stock options awarded under the Company's stock options program. The number ofCompany shares accordingly rose from 136,730,473 to 136,738,497.


02123-7 ENEVA S/A 04.423.567/0001-21


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The Company's capital was increased in May 2012 by the Board of Directors' meeting held5/9/2012 as a result of the (i) issuance of 4,112 new shares resulting from the conversion of2,701 debentures and (ii) the issuance of 125,620 new common shares, with no par value,resulting from the exercising of stock options awarded under the Company's stock optionsprogram. The number of Company shares accordingly rose from 136,738,497 to 136,868,229.

The capital was increased again the same month by the Board of Directors' meeting held5/24/2012, which ratified the issuance of 33,254,705 new common shares with no par value,resulting from the conversion of 21,652,966 debentures. The number of Company sharesaccordingly rose from 136,868,229 to 170,122,934.

On 5/24/2012 the ENEVA Board of Directors approved a capital increase of R$1,000,000,063.00 via the issuance of 22,623,796 new shares. However, the subscribed shareswill only exist after the capital increase has been concluded and subsequently ratified, whichwas concluded in July 2012 and ratified by the Board of Directors' meeting held July 25, 2012.

The Company's capital was increased in June 2012 by the Board of Directors' meeting held6/15/2012, which ratified the issuance of 514 new common shares with no par value, resultingfrom the conversion of 334 debentures. The number of Company shares accordingly rose from170,122,934 to 170,123,448.

On 6/25/2012 the Board of Directors' meeting ratified the capital increase, approved by theBoard of Directors' meeting on 5/24/2012 at 11 AM, of R$ 1,000,000,063.00 (one billion andsixty-three reais), within the authorized capital limit, as a result of the subscription and fullpayment of the 22,623,796 new common registered shares with no par value by E.ON AG(“E.ON”). The number of Company shares accordingly rose from 170,123,448 to 192,747,244.

Pursuant to the minutes of the Extraordinary General Meeting held by the Company on8/15/2012, the shareholders in attendance unanimously approved the split of common sharesissued by the Company, whereby each existing common share was split into 3 (three) shares ofthe same class. ENEVA's shareholders are entitled to receive the split shares according to theirshareholding at Wednesday, August 15, 2012. The number of Company shares accordinglyrose from 192,747,244 to 578,241,732.

The Company's capital was increased in January 2013 by the Board of Directors' meeting held1/10/2013, ratifying the issuance of 147,480 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 578,389,212.

The Company's capital was increased in February 2013 by the Board of Directors' meeting held2/6/2013, ratifying the issuance of 27,000 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 578,416,212.

However, there was a partial subscription of the capital increase, whereby the share capital asof 3/31/2013 stood at R$ 3,736,269,091.89, less than the figure presented in the minutes to theBoard of Directors' meeting held February 06, 2013. The remainder of the share capital waspaid in after the end of the first quarter, resulting in a share capital of R$ 3,736,354,722.02.


02123-7 ENEVA S/A 04.423.567/0001-21


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The Company's capital was increased in April 2013 by the Board of Directors' meeting held4/5/2013, ratifying the issuance of 34,500 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 578,450,712. As a result of this resolutionthe Company's share capital has changed from R$ 3,736,354,722.02 to R$ 3,736,468,820.55.

The Company's capital was increased in May 2013 by the Board of Directors' meeting held5/8/2013, ratifying the issuance of 29,250 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 578,479,962. As a result of this resolutionthe Company's share capital has changed from R$ 3,736,468,820.55 to R$ 3,736,568,320.85.

On 9/16/2013 the Board of Directors' meeting ratified the Company's capital increase, asapproved by the Board of Directors' meeting on July 03, 2013, of R$ 799,999,995.15, within theauthorized capital limit, as a result of the subscription and full payment of the 124,031,007 newcommon registered shares with no par value. The number of Company shares accordingly rosefrom 578,479,962 to 702,510,969. The Company's share capital has accordingly changed fromR$ 3,736,568,320.85 to R$ 4,536,568,316.00.

The Company's capital was increased in October 2013 by the Board of Directors' meeting held10/21/2013, ratifying the issuance of 13,500 new common shares, with no par value, resultingfrom the exercising of stock options awarded under the Company's stock options program. Thenumber of Company shares accordingly changed to 702,524,469. As a result of this resolutionthe Company's share capital has changed from R$ 4,536,568,316.00 to R$ 4,536,608,413.70.

Shareholdings of over 5% of the shares of each type and class in the Company, including thoseof individuals

Company: ENEVA S.A. Position at 3/31/2014

Common shares* Total

Shareholder Quantity % Quantity %

Eike Fuhrken Batista 145,704,988 20.7 145,704,988 20.7

Centennial Asset Mining Fund LLC 20,208,840 2.9 20,208,840 2.9

Centennial Asset Brazilian Equity Fund LLC 1,822,065 0.3 1,822,065 0.3

E.ON 266,269,556 37.9 266,269,556 37.9

BNDESPAR 72,650,210 10.3 72,650,210 10.3

Other 195,868,810 27.9 195,868,810 27.9

Total 702,524,469 100 702,524,469 100*ENEVA's share capital consists solely of common shares.


02123-7 ENEVA S/A 04.423.567/0001-21


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Distribution of share capital in our corporate shareholder (Company shareholder), including theshareholdings of individuals

Company: Centennial Asset Mining Fund LLC Position at 3/31/2014

Quotas Total


Eike Fuhrken Batista 1,000 100 1,000 100

Total 1,000 100 1,000 100

Company: Centennial Asset Brazilian Equity Fund LLC Position at 3/31/2014

Quotas Total


Centennial Asset Mining Fund LLC 1,000 100 1,000 100

Total 1,000 100 1,000 100

To facilitate your comprehension a summary follows of the corporate changes ENEVA hasundergone in the period of one year:

On 5/27/2013 E.ON SE. and Mr. Eike Fuhrken Batista ("Parties), the controllingshareholder of ENEVA, signed the Shareholders' Agreement (“Agreement”), by whichthe Parties established the main terms and conditions that will govern their relationshipas ENEVA shareholders, in order for the Parties to share control of the Company(subject to the Agreement's severance terms). E.ON and Mr. Eike Fuhrken Batistasigned an Investment Agreement on March 27, 2013 for the acquisition by E.ON ofENEVA shares held by Mr. Eike Fuhrken Batista, followed by a private capital increaseof ENEVA, ratified on September 16, 2013.


02123-7 ENEVA S/A 04.423.567/0001-21


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At March 31, 2013 the Company’s share capital consisted of 578,241,732 common sharesdistributed as follows:

CONSOLIDATED SHAREHOLDINGS OF CONTROLLING SHAREHOLDERSMANAGERS AND FREE FLOAT

Position at 3/31/2013

ShareholderNumber of Common

Shares(in units)

%Total Number of

Shares(in units)

%

Controlling Shareholder 309,280,530 53.47 309,280,530 53.47

Executives

Board of Directors 2,935,816 0.51 2,935,816 0.51

Executive Board 4,198,060 0.73 4,198,060 0.73

Audit Committee* - - - -

Treasury Stock 0 0.00 0 0.00

Other Shareholders 262,001,806 45.29 262,001,806 45.29

Total 578,416,212 100 578,416,212 100

Free Float 262,001,806 45.29 262,001,806 45.29

*The Company's Annual Meeting did not convene the Audit Committee in FY 2012.

Shareholdings of over 5% of the shares of each type and class in the Company, including thoseof individuals

Company: ENEVA S.A. Position at 3/31/2013

Common shares Total


Eike Fuhrken Batista 287,249,625 49.7 287,249,625 49.7

Centennial Asset Mining Fund LLC 20,208,840 3.5 20,208,840 3.5

Centennial Asset Brazilian Equity Fund LLC 1,822,065 0.3 1,822,065 0.3

E.ON 67,869,516 11.7 67,869,516 11.7

BNDESPAR 59,823,537 10.3 59,823,537 10.3

Other 141,442,629 24.5 141,442,629 24.5

Total 578,416,212 100 578,416,212 100


02123-7 ENEVA S/A 04.423.567/0001-21


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Distribution of share capital in our corporate shareholder (Company shareholder), including theshareholdings of individuals

Company: Centennial Asset Mining Fund LLC Position at 3/31/2013

Quotas Total


Eike Fuhrken Batista 1,000 100 1,000 100

Total 1,000 100 1,000 100

Company: Centennial Asset Brazilian Equity Fund LLC Position at 3/31/2013

Quotas Total


Centennial Asset Mining Fund LLC 1,000 100 1,000 100

Total 1,000 100 1,000 100

Documents

1Q14 Quarterly Information (ITR)