Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Registration with CVM SHOULD not BE CONSTRUED AS AN EVALUATION oF the company. company management is responsible for the information provided. |
1 - CVM CODE |
2 - COMPANY NAME |
3 - CNPJ (Federal Tax ID) |
01866-0 |
CPFL ENERGIA S.A. |
02.429.144/0001-93 |
|
|
|
4 - NIRE (State Registration Number) | ||
35300186133 |
1 - ADDRESS Rua Gomes de Carvalho, 1510 - 14º Cj 2 |
2 - DISTRICT Vila Olímpia | ||||||
3 - ZIP CODE 04547-005 |
4 - CITY São Paulo |
5 - STATE SP | |||||
6 - AREA CODE 019 |
7 - TELEPHONE 3756-8018 |
8 - TELEPHONE - |
9 - TELEPHONE - |
10 - TELEX
| |||
11 - AREA CODE 019 |
12 - FAX 3756-8392 |
13 - FAX - |
14 - FAX - |
| |||
15 - E-MAIL ri@cpfl.com.br | |||||||
1- NAME Wilson P. Ferreira Junior | |||||||
2 ADDRESS Rodovia Campinas Mogi-Mirim, 1755, Km 2,5 |
3 - DISTRICT Jardim Santana | ||||||
4 - ZIP CODE 13088-900 |
5 - CITY Campinas |
6 - STATE SP | |||||
7 - AREA CODE 019 |
8 - TELEPHONE 3756-8704 |
9 - TELEPHONE - |
10 - TELEPHONE - |
11 - TELEX
| |||
12 - AREA CODE 019 |
13 - FAX 3756-8777 |
14 - FAX - |
15 - FAX - |
| |||
16 - E-MAIL wferreira@cpfl.com.br | |||||||
CURRENT YEAR |
CURRENT QUARTER |
PREVIOUS QUARTER | |||||
1 - BEGINNING |
2. END |
3 - NUMBER |
4 - BEGINNING |
5 - END |
6 - NUMBER |
7 - BEGINNING |
8 - END |
01.01.2010 |
12.31.2010 |
2 |
04.01.2010 |
06.30.2010 |
1 |
01.01.2010 |
03.31.2010 |
09 - INDEPENDENT ACCOUNTANT KPMG Auditores Independentes |
10 - CVM CODE 00418-9 |
11. PARTNER IN CHARGE Jarib Brisola Duarte Fogaça |
12 - CPF (INDIVIDUAL TAX ID) 012.163.378-02 |
1
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
01.01 - IDENTIFICATION
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
Number of Shares (in units) |
1 CURRENT QUARTER 06/30/2010 |
2 PREVIOUS QUARTER 03/31/2010 |
3 SAME QUARTER PREVIOUS YEAR 06/30/2009 |
Paid-in Capital | |||
1 Common |
481,137,130 |
479,910,938 |
479,910,938 |
2 Preferred |
0 |
0 |
0 |
3 Total |
481,137,130 |
479,910,938 |
479,910,938 |
Treasury Stock | |||
4 - Common |
0 |
0 |
0 |
5 - Preferred |
0 |
0 |
0 |
6 Total |
0 |
0 |
0 |
1 - TYPE OF COMPANY Commercial, Industrial and Other |
2 - STATUS Operational |
3 - NATURE OF OWNERSHIP Private National |
4 - ACTIVITY CODE 3120 Administration and Participation Company - Electric Energy |
5 - MAIN ACTIVITY Holding |
6 - CONSOLIDATION TYPE Full |
7 TYPE OF INDEPENDENT ACCOUNTANTS REPORT Unqualified |
1 ITEM |
2 - CNPJ (Federal Tax ID) |
3 - COMPANY NAME |
1 ITEM |
2 EVENT |
3 APPROVAL |
4 TYPE
|
5 - DATE OF PAYMENT |
6 - TYPE OF SHARE |
7 - AMOUNT PER SHARE |
01 |
AGO/E |
04/26/2010 |
Dividend |
04/30/2010 |
ON (Common shares) |
1,3648726500 |
02 |
RCA |
08/11/2010 |
Dividend |
|
ON (Common shares) |
1,6095795990 |
2
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
01.01 - IDENTIFICATION
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - ITEM |
2 - DATE OF CHANGE |
3 - CAPITAL STOCK (IN THOUSANDS OF REAIS) |
4 - AMOUNT OF CHANGE (IN THOUSANDS OF REAIS) |
5 - NATURE OF CHANGE |
7 - NUMBER OF SHARES ISSUED (IN UNITS) |
8 -SHARE PRICE WHEN ISSUED (IN REAIS)
|
1- DATE
|
2 SIGNATURE |
3
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
01.01 - IDENTIFICATION
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 Code |
2 Description |
3 06/30/2010 |
4 03/31/2010 |
1 |
Total assets |
6,433,621 |
6,611,563 |
1.01 |
Current assets |
1,422,373 |
1,223,467 |
1.01.01 |
Cash and cash equivalents |
70,972 |
217,958 |
1.01.02 |
Credits |
1,348,610 |
1,003,175 |
1.01.02.01 |
Accounts receivable |
0 |
0 |
1.01.02.02 |
Other receivables |
1,348,610 |
1,003,175 |
1.01.02.02.01 |
Dividends and interest on shareholders equity |
1,230,433 |
901,882 |
1.01.02.02.02 |
Financial investments |
40,209 |
39,615 |
1.01.02.02.03 |
Recoverable taxes |
61,265 |
44,763 |
1.01.02.02.04 |
Deferred taxes |
16,320 |
16,320 |
1.01.02.02.05 |
Prepaid expenses |
286 |
317 |
1.01.02.02.06 |
Derivatives |
97 |
278 |
1.01.03 |
Materials and supplies |
0 |
0 |
1.01.04 |
Other |
2,791 |
2,334 |
1.02 |
Noncurrent assets |
5,011,248 |
5,388,096 |
1.02.01 |
Long-term assets |
228,660 |
244,727 |
1.02.01.01 |
Other receivables |
204,927 |
218,641 |
1.02.01.01.01 |
Financial investments |
51,675 |
57,338 |
1.02.01.01.02 |
Recoverable taxes |
2,787 |
2,787 |
1.02.01.01.03 |
Deferred taxes |
149,024 |
157,200 |
1.02.01.01.04 |
Prepaid expenses |
1,038 |
1,119 |
1.02.01.01.05 |
Escrow deposits |
403 |
197 |
1.02.01.02 |
Related parties |
23,723 |
26,086 |
1.02.01.02.01 |
Associated companies |
0 |
0 |
1.02.01.02.02 |
Subsidiaries |
23,723 |
26,086 |
1.02.01.02.03 |
Other related parties |
0 |
0 |
1.02.01.03 |
Other |
10 |
0 |
1.02.02 |
Permanent assets |
4,782,588 |
5,143,369 |
1.02.02.01 |
Investments |
4,776,038 |
5,138,834 |
1.02.02.01.01 |
Associated companies |
0 |
0 |
1.02.02.01.02 |
Associated companies - goodwill |
0 |
0 |
1.02.02.01.03 |
Permanent equity interests |
3,319,495 |
3,678,260 |
1.02.02.01.04 |
Permanent equity interests - goodwill |
1,469,371 |
1,473,402 |
1.02.02.01.05 |
Other investments |
0 |
0 |
1.02.02.01.06 |
Permanent equity interests negative goodwill |
(12,828) |
(12,828) |
1.02.02.02 |
Property, plant and equipment |
170 |
125 |
1.02.02.03 |
Intangible assets |
6,380 |
4,410 |
1.02.02.04 |
Deferred charges |
0 |
0 |
4
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
01.01 - IDENTIFICATION
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
02.02 - BALANCE SHEET - LIABILITIES (in thousands of Brazilian reais R$)
1 Code |
2 - Description |
3 06/30/2010 |
4 03/31/2010 |
2 |
Total liabilities |
6,433,621 |
6,611,563 |
2.01 |
Current liabilities |
844,444 |
686,787 |
2.01.01 |
Loans and financing |
0 |
0 |
2.01.02 |
Debentures |
13,673 |
3,122 |
2.01.02.01 |
Interest on debentures |
13,673 |
3,122 |
2.01.03 |
Suppliers |
1,590 |
2,665 |
2.01.04 |
Taxes and social contributions payable |
28,060 |
178 |
2.01.05 |
Dividends |
791,163 |
672,013 |
2.01.06 |
Reserves |
0 |
0 |
2.01.07 |
Related parties |
0 |
0 |
2.01.08 |
Other |
9,958 |
8,809 |
2.01.08.01 |
Accrued liabilities |
139 |
100 |
2.01.08.02 |
Derivatives |
103 |
0 |
2.01.08.03 |
Other |
9,716 |
8,709 |
2.02 |
Noncurrent liabilities |
451,009 |
451,635 |
2.02.01 |
Long-term liabilities |
451,009 |
451,635 |
2.02.01.01 |
Loans and financing |
0 |
0 |
2.02.01.02 |
Debentures |
450,000 |
450,000 |
2.02.01.03 |
Reserves |
393 |
187 |
2.02.01.03.01 |
Reserve for contingencies |
393 |
187 |
2.02.01.04 |
Related parties |
0 |
0 |
2.02.01.05 |
Advance for future capital increase |
0 |
0 |
2.02.01.06 |
Other |
616 |
1,448 |
2.02.01.06.01 |
Derivatives |
598 |
1,430 |
2.02.01.06.02 |
Other |
18 |
18 |
2.03 |
Deferred income |
0 |
0 |
2.05 |
Shareholders equity |
5,138,168 |
5,473,141 |
2.05.01 |
Capital |
4,793,424 |
4,741,175 |
2.05.02 |
Capital reserves |
16 |
16 |
2.05.03 |
Revaluation reserves |
0 |
0 |
2.05.03.01 |
Own assets |
0 |
0 |
2.05.03.02 |
Subsidiary/associated companies |
0 |
0 |
2.05.04 |
Profit reserves |
341,751 |
341,751 |
2.05.04.01 |
Legal reserves |
341,751 |
341,751 |
2.05.04.02 |
Statutory reserves |
0 |
0 |
2.05.04.03 |
For contingencies |
0 |
0 |
2.05.04.04 |
Unrealized profits |
0 |
0 |
2.05.04.05 |
Profit retention |
0 |
0 |
2.05.04.06 |
Special reserve for undistributed dividends |
0 |
0 |
2.05.04.07 |
Other profit retention |
0 |
0 |
2.05.05 |
Equity valuation adjustments |
0 |
0 |
2.05.05.01 |
Adjustments of financial investments |
0 |
0 |
2.05.05.02 |
Adjustments of cumulative translation |
0 |
0 |
2.05.05.03 |
Adjustments of business combinations |
0 |
0 |
2.05.06 |
Accumulated profit or loss |
2,977 |
390,199 |
2.05.07 |
Advance for future capital increase |
0 |
0 |
5
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - Code |
2 Description |
3 - 04/01/2010 to 06/30/2010 |
4 - 01/01/2010 to 06/30/2010 |
5 - 04/01/2009 to 06/30/2009 |
6 - 01/01/2009 to 06/30/2009 |
3.01 |
Gross operating revenues |
2 |
2 |
0 |
0 |
3.02 |
Deductions |
0 |
0 |
0 |
0 |
3.03 |
Net operating revenues |
2 |
2 |
0 |
0 |
3.04 |
Cost of sales and/or services |
0 |
0 |
0 |
0 |
3.05 |
Gross operating income |
2 |
2 |
0 |
0 |
3.06 |
Operating income (expense) |
509,879 |
899,946 |
414,908 |
697,444 |
3.06.01 |
Selling |
0 |
0 |
0 |
0 |
3.06.02 |
General and administrative |
(6,226) |
(11,022) |
(4,071) |
(7,883) |
3.06.03 |
Financial |
92,775 |
94,245 |
87,805 |
80,196 |
3.06.03.01 |
Financial income |
105,371 |
117,995 |
101,742 |
109,972 |
3.06.03.01.01 |
Interest on Shareholders Equity |
98,669 |
98,669 |
102,134 |
102,134 |
3.06.03.01.02 |
Other Financial Income |
6,702 |
19,326 |
(392) |
7,838 |
3.06.03.02 |
Financial expense |
(12,596) |
(23,750) |
(13,937) |
(29,776) |
3.06.04 |
Other operating income |
0 |
0 |
0 |
0 |
3.06.05 |
Other operating expense |
(36,878) |
(72,240) |
(38,283) |
(75,470) |
3.06.05.01 |
Amortization of intangible asset of concession |
(36,878) |
(72,240) |
(37,187) |
(74,374) |
3.06.05.02 |
Operating expesnse |
0 |
0 |
(1.096) |
(1.096) |
3.06.06 |
Equity in subsidiaries |
460,208 |
888,963 |
369,457 |
700,601 |
3.07 |
Operating income |
509,881 |
899,948 |
414,908 |
697,444 |
3.08 |
Non operating income |
0 |
0 |
0 |
0 |
3.08.01 |
Income |
0 |
0 |
0 |
0 |
3.08.02 |
Expense |
0 |
0 |
0 |
0 |
6
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - Code |
2 Description |
3 - 04/01/2010 to 06/30/2010 |
4 - 01/01/2010 to 06/30/2010 |
5 - 04/01/2009 to 06/30/2009 |
6 - 01/01/2009 to 06/30/2009 |
3.09 |
Income before taxes on income and profit sharing |
509,881 |
899,948 |
414,908 |
697,444 |
3.10 |
Income tax and social contribution |
(18,805) |
(18,805) |
(18,581) |
(18,581) |
3.10.01 |
Social Contribuition |
(4,361) |
(4,361) |
(3,698) |
(3,698) |
3.10.02 |
Income Tax |
(14,444) |
(14,444) |
(14,883) |
(14,883) |
3.11 |
Deferred income tax |
(8,177) |
(8,045) |
(5,225) |
(5,058) |
3.11.01 |
Deferred social contribution |
(1,913) |
(1,890) |
(1,583) |
(1,653) |
3.11.02 |
Deferred income tax |
(6,264) |
(6,155) |
(3,642) |
(3,405) |
3.12 |
Statutory profit sharing/contributions |
0 |
0 |
0 |
0 |
3.12.01 |
Profit sharing |
0 |
0 |
0 |
0 |
3.12.02 |
Contributions |
0 |
0 |
0 |
0 |
3.13 |
Reversal of interest on shareholders equity |
(98,669) |
(98,669) |
(102,134) |
(102,134) |
3.15 |
Net income |
384,230 |
774,429 |
288,968 |
571,671 |
|
SHARES OUTSTANDING EX-TREASURY STOCK (in units) |
481,137,130 |
481,137,130 |
479,910,938 |
479,910,938 |
|
NET INCOME PER SHARE (Reais) |
0,79859 |
1,60958 |
0,60213 |
1,19120 |
|
NET LOSS PER SHARE (Reais) |
|
|
|
|
7
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
04.01 STATEMENTS OF CASH FLOW INDIRECT METHOD (in thousands of Brazilian reais R$)
1 - Code |
2 - Description |
3 - 04/01/2010 to 06/30/2010 |
4 - 01/01/2010 to 06/30/2010 |
5 - 04/01/2009 to 06/30/2009 |
6 - 01/01/2009 to 06/30/2009 |
4.01 |
Net cash from operating activities |
491,792 |
481,769 |
538,639 |
518,756 |
4.01.01 |
Cash generated from operations |
(7,796) |
(6,593) |
(744) |
(1,331) |
4.01.01.01 |
Net income, including income tax and social contribution |
411,212 |
801,279 |
312,774 |
595,310 |
4.01.01.02 |
Noncontrolling interest |
0 |
0 |
0 |
0 |
4.01.01.03 |
Depreciation and amortization |
36,914 |
72,306 |
37,216 |
74,433 |
4.01.01.04 |
Reserve for contingencies |
0 |
0 |
9,447 |
9,447 |
4.01.01.05 |
Interest and monetary and exchange restatement |
4,286 |
8,785 |
8,180 |
18,984 |
4.01.01.06 |
Equity in subsidiaries |
(460,208) |
(888,963) |
(369,457) |
(700,601) |
4.01.01.07 |
Loss on the noncurrent assets disposal |
0 |
0 |
1,096 |
1,096 |
4.01.02 |
Variation on assets and liabilities |
499,588 |
488,362 |
539,383 |
520,087 |
4.01.02.01 |
Dividend and interest on shareholders equity received |
493,015 |
500,014 |
540,768 |
551,768 |
4.01.02.02 |
Recoverable taxes |
(1,691) |
(2,144) |
(1,016) |
(2,206) |
4.01.02.03 |
Escrow deposits |
(206) |
(393) |
(2) |
(2) |
4.01.02.04 |
Other operating assets |
(546) |
(283) |
69 |
153 |
4.01.02.05 |
Suppliers |
(1,075) |
(1,068) |
232 |
(56) |
4.01.02.06 |
Other taxes and social contributions |
9,077 |
9,153 |
59 |
33 |
4.01.02.07 |
Interest on debts - paid |
0 |
(19,398) |
1 |
(29,817) |
4.01.02.08 |
Other operating liabilities |
1,014 |
2,481 |
(728) |
214 |
4.01.03 |
Other |
0 |
0 |
0 |
0 |
4.02 |
Net cash in investing activities |
13,524 |
22,617 |
8,171 |
75,496 |
4.02.01 |
Decrease of capital in subsidiaries |
0 |
0 |
0 |
60,236 |
4.02.02 |
Acquisition of property, plant and equipment |
(45) |
(169) |
0 |
0 |
4.02.03 |
Financial investments |
11,179 |
21,239 |
10,324 |
20,066 |
4.02.04 |
Acquisition of intangible assets other |
0 |
0 |
(83) |
(112) |
4.02.05 |
Sale of noncurrent assets |
0 |
(45) |
0 |
0 |
4.02.06 |
Advances for future capital increase |
(95) |
(95) |
(90) |
(100) |
4.02.07 |
Intercompany loans with subsidiaries and associated companies |
2,413 |
1,614 |
(1,980) |
(4,594) |
4.02.08 |
Other |
72 |
73 |
0 |
0 |
4.03 |
Net cash in financing activities |
(652,302) |
(652,540) |
(603,516) |
(603,779) |
4.03.01 |
Loans, financing and debentures obtained |
0 |
0 |
0 |
0 |
4.03.02 |
Payment of loans, financing and debentures (principal), net of derivatives |
0 |
(198) |
0 |
(239) |
4.03.03 |
Dividend and interest on shareholders equity paid |
(652,302) |
(652,342) |
(603,516) |
(603,540) |
4.04 |
Exchange variation on cash and cash equivalents |
0 |
0 |
0 |
0 |
4.05 |
Increase (decrease) in cash and cash equivalents |
(146,986) |
(148,154) |
(56,706) |
(9,527) |
4.05.01 |
Cash and cash equivalents at beginning of period |
217,958 |
219,126 |
62,881 |
15,702 |
4.05.02 |
Cash and cash equivalents at end of period |
70,972 |
70,972 |
6,175 |
6,175 |
8
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - Code |
2 Description |
3 - Capital |
4 Capital Reserves |
5 Revaluation Reserves |
6 Profit Reserves |
7 Retained earnings |
8 Equity valuation adjustments |
9 Shareholders Equity Total |
5.01 |
Opening balance |
4,741,175 |
16 |
0 |
341,751 |
390,199 |
0 |
5,473,141 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
0 |
341,751 |
390,199 |
0 |
5,473,141 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
384,230 |
0 |
384,230 |
5.05 |
Distribution |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.01 |
Dividend |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.02 |
Interest on shareholders equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.03 |
Other distributions |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.01 |
Adjustment of financial Investments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.02 |
Adjustment of cumulative translation |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.03 |
Adjustment of business combinations |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.08 |
Increase/Decrease on capital |
52,249 |
0 |
0 |
0 |
0 |
0 |
52,249 |
5.09 |
Constitution/Realization of capital reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.10 |
Treasury shares |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
9
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - Code |
2 Description |
3 - Capital |
4 Capital Reserves |
5 Revaluation Reserves |
6 Profit Reserves |
7 Retained earnings |
8 Equity valuation adjustments |
9 Shareholders Equity Total |
5.11 |
Other transactions of capital |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.12 |
Other |
0 |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
2,977 |
0 |
5,138,168 |
10
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - Code |
2 Description |
3 - Capital |
4 Capital Reserves |
5 Revaluation Reserves |
6 Profit Reserves |
7 Retained earnings |
8 Equity valuation adjustments |
9 Shareholders Equity Total |
5.01 |
Opening balance |
4,741,175 |
16 |
0 |
341,751 |
0 |
0 |
5,082,942 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
0 |
341,751 |
0 |
0 |
5,082,942 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
774,429 |
0 |
774,429 |
5.05 |
Distribution |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.01 |
Dividend |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.02 |
Interest on shareholders equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.03 |
Other distributions |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.01 |
Adjustment of financial Investments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.02 |
Adjustment of cumulative translation |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.03 |
Adjustment of business combinations |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.08 |
Increase/Decrease on capital |
52,249 |
0 |
0 |
0 |
0 |
0 |
52,249 |
5.09 |
Constitution/Realization of capital reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.10 |
Treasury shares |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
11
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE 01866-0 |
2 - COMPANY NAME CPFL ENERGIA S.A. |
3 - CNPJ (Federal Tax ID) 02.429.144/0001-93 |
1 - Code |
2 Description |
3 - Capital |
4 Capital Reserves |
5 Revaluation Reserves |
6 Profit Reserves |
7 Retained earnings |
8 Equity valuation adjustments |
9 Shareholders Equity Total |
5.11 |
Other transactions of capital |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.12 |
Other |
0 |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
2,977 |
0 |
5,138,168 |
12
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - Code |
2 Description |
3 06/30/2010 |
4 03/31/2010 |
1 |
Total assets |
17,342,478 |
17,278,753 |
1.01 |
Current assets |
4,261,514 |
4,527,925 |
1.01.01 |
Cash and cash equivalents |
1,375,099 |
1,684,702 |
1.01.02 |
Credits |
2,680,769 |
2,671,464 |
1.01.02.01 |
Accounts receivable |
1,832,239 |
1,801,794 |
1.01.02.01.01 |
Consumers, concessionaires and licensees |
1,918,149 |
1,882,494 |
1.01.02.01.02 |
Allowance for doubtful accounts |
(85,910) |
(80,700) |
1.01.02.02 |
Other credits |
848,530 |
869,670 |
1.01.02.02.01 |
Financial investments |
40,209 |
39,615 |
1.01.02.02.02 |
Recoverable taxes |
224,052 |
174,406 |
1.01.02.02.03 |
Deferred taxes |
163,501 |
163,148 |
1.01.02.02.04 |
Deferred tariff cost variations |
226,090 |
337,309 |
1.01.02.02.05 |
Prepaid expenses |
194,274 |
145,353 |
1.01.02.02.06 |
Derivatives |
404 |
9,839 |
1.01.03 |
Materials and supplies |
17,631 |
16,735 |
1.01.04 |
Other |
188,015 |
155,024 |
1.02 |
Noncurrent assets |
13,080,964 |
12,750,828 |
1.02.01 |
Long-term assets |
2,420,784 |
2,435,211 |
1.02.01.01 |
Other credits |
2,254,487 |
2,272,171 |
1.02.01.01.01 |
Consumers, concessionaires and licensees |
199,300 |
216,139 |
1.02.01.01.02 |
Financial investments |
70,143 |
75,394 |
1.02.01.01.03 |
Recoverable taxes |
119,935 |
109,284 |
1.02.01.01.04 |
Deferred taxes |
1,059,493 |
1,103,699 |
1.02.01.01.05 |
Deferred tariff cost variations |
46,645 |
30,765 |
1.02.01.01.06 |
Prepaid expenses |
48,320 |
50,442 |
1.02.01.01.07 |
Escrow deposits |
701,644 |
686,348 |
1.02.01.01.08 |
Derivatives |
9,007 |
100 |
1.02.01.02 |
Related parties |
0 |
0 |
1.02.01.02.01 |
Associated companies |
0 |
0 |
1.02.01.02.02 |
Subsidiaries |
0 |
0 |
1.02.01.02.03 |
Other related parties |
0 |
0 |
1.02.01.03 |
Other |
166,297 |
163,040 |
1.02.02 |
Permanent assets |
10,660,180 |
10,315,617 |
1.02.02.01 |
Investments |
104,916 |
104,858 |
1.02.02.01.01 |
Associated companies |
0 |
0 |
1.02.02.01.02 |
Interest in subsidiaries |
0 |
0 |
1.02.02.01.03 |
Other investments |
117,744 |
117,686 |
1.02.02.01.06 |
Permanent equity interests negative goodwill |
(12,828) |
(12,828) |
1.02.02.02 |
Property, plant and equipment |
8,012,355 |
7,671,249 |
1.02.02.03 |
Intangible assets |
2,529,610 |
2,525,301 |
1.02.02.04 |
Deferred charges |
13,299 |
14,209 |
13
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
08.02 CONSOLIDATED BALANCE SHEET LIABILITIES AND SHAREHOLDRES EQUITY (in thousands of Brazilian reais R$)
1 - Code |
2 Description |
3 06/30/2010 |
4 03/31/2010 |
2 |
Total liabilities |
17,342,478 |
17,278,753 |
2.01 |
Current liabilities |
4,633,854 |
5,455,725 |
2.01.01 |
Loans and financing |
541,928 |
1,396,670 |
2.01.01.01 |
Accrued interest on debts |
34,308 |
84,687 |
2.01.01.02 |
Loans and financing |
507,620 |
1,311,983 |
2.01.02 |
Debentures |
640,417 |
574,669 |
2.01.02.01 |
Accrued interest on debentures |
114,217 |
74,838 |
2.01.02.02 |
Debentures |
526,200 |
499,831 |
2.01.03 |
Suppliers |
1,078,422 |
994,669 |
2.01.04 |
Taxes and social contributions payable |
524,717 |
532,616 |
2.01.05 |
Dividends and interest on equity |
799,318 |
681,185 |
2.01.06 |
Reserves |
0 |
0 |
2.01.07 |
Related parties |
0 |
0 |
2.01.08 |
Other |
1,049,052 |
1,275,916 |
2.01.08.01 |
Employee pension plans |
43,006 |
41,954 |
2.01.08.02 |
Regulatory charges |
109,707 |
100,028 |
2.01.08.03 |
Accrued liabilities |
63,824 |
50,384 |
2.01.08.04 |
Deferred tariff gain variations |
336,713 |
487,668 |
2.01.08.05 |
Deferred tax debts |
158 |
200 |
2.01.08.06 |
Derivatives |
1,281 |
0 |
2.01.08.07 |
Other |
494,363 |
595,682 |
2.02 |
Noncurrent liabilities |
7,497,551 |
6,262,692 |
2.02.01 |
Long-Term liabilities |
7,497,551 |
6,262,692 |
2.02.01.01 |
Loans and financing |
3,748,114 |
2,979,976 |
2.02.01.01.01 |
Accrued Interest on debts |
8,733 |
14,424 |
2.02.01.01.02 |
Loans and financing |
3,739,381 |
2,965,552 |
2.02.01.02 |
Debentures |
2,946,876 |
2,551,198 |
2.02.01.03 |
Reserves |
127,655 |
42,259 |
2.02.01.03.01 |
Reserve for contingencies |
127,655 |
42,259 |
2.02.01.04 |
Related parties |
0 |
0 |
2.02.01.05 |
Advance for future capital increase |
0 |
0 |
2.02.01.06 |
Other |
674,906 |
689,259 |
2.02.01.06.01 |
Suppliers |
21,328 |
31,992 |
2.02.01.06.02 |
Employee pension plans |
344,620 |
383,894 |
2.02.01.06.03 |
Taxes and social contributions payable |
1,309 |
1,476 |
2.02.01.06.04 |
Deferred tax debts |
284 |
4,677 |
2.02.01.06.05 |
Deferred tariff gain variations |
115,395 |
64,647 |
2.02.01.06.06 |
Derivatives |
1,134 |
10,767 |
2.02.01.06.07 |
Other |
190,836 |
191,806 |
2.03 |
Deferred revenue |
0 |
0 |
2.04 |
Noncontrolling shareholders interest |
72,905 |
87,195 |
2.05 |
Shareholders equity |
5,138,168 |
5,473,141 |
2.05.01 |
Capital |
4,793,424 |
4,741,175 |
2.05.02 |
Capital reserves |
16 |
16 |
2.05.03 |
Revaluation reserves |
0 |
0 |
2.05.03.01 |
Own assets |
0 |
0 |
2.05.03.02 |
Subsidiary/associated companies |
0 |
0 |
2.05.04 |
Profit reserves |
341,751 |
341,751 |
2.05.04.01 |
Legal |
0 |
0 |
2.05.04.02 |
Statutory |
0 |
0 |
2.05.04.03 |
For contingencies |
0 |
0 |
2.05.04.04 |
Unrealized profits |
0 |
0 |
2.05.04.05 |
Profit retention |
341,751 |
341,751 |
2.05.04.06 |
Special reserve for undistributed dividends |
0 |
0 |
2.05.04.07 |
Other revenue reserves |
0 |
0 |
2.05.05 |
Equity valuation adjustments |
0 |
0 |
2.05.05.01 |
Adjustment of financial investments |
0 |
0 |
2.05.05.02 |
Adjustment of cumulative translation |
0 |
0 |
2.05.05.03 |
Adjustment of business combinations |
0 |
0 |
2.05.06 |
Accumulated profit or loss |
2,977 |
390,199 |
2.05.07 |
Advance for future capital increase |
0 |
0 |
14
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 Code |
2 - Description |
3 - 04/01/2010 to 06/30/2010 |
4 - 01/01/2010 to 06/30/2010 |
5 - 04/01/2009 to 06/30/2009 |
6 - 01/01/2009 to 06/30/2009 |
3.01 |
Operating revenues |
4,009,550 |
8,118,357 |
3,926,774 |
7,514,529 |
3.02 |
Deductions from operating revenues |
(1,369,541) |
(2,693,284) |
(1,278,301) |
(2,480,088) |
3.02.01 |
ICMS (State VAT) |
(670,889) |
(1,350,352) |
(650,338) |
(1,260,961) |
3.02.02 |
PIS (Tax on Revenue) |
(64,894) |
(130,982) |
(62,548) |
(119,665) |
3.02.03 |
COFINS (Tax on Revenue) |
(298,914) |
(603,370) |
(288,099) |
(551,196) |
3.02.04 |
ISS (Tax on Service Revenue) |
(724) |
(1,517) |
(874) |
(1,776) |
3.02.05 |
Global reversal reserve RGR |
(16,994) |
(32,364) |
(13,162) |
(25,833) |
3.02.06 |
Fuel consumption account - CCC |
(149,108) |
(249,384) |
(118,540) |
(248,705) |
3.02.07 |
Energy development account - CDE |
(123,558) |
(242,719) |
(110,806) |
(209,585) |
3.02.08 |
Research and Development and Energy Efficiency Programs |
(29,787) |
(57,022) |
(25,122) |
(47,827) |
3.02.09 |
PROINFA |
(14,673) |
(25,571) |
(8,819) |
(14,547) |
3.02.10 |
Emergency Charges (ECE/EAEE) |
0 |
(3) |
7 |
7 |
3.03 |
Net operating revenues |
2,640,009 |
5,425,073 |
2,648,473 |
5,034,441 |
3.04 |
Cost of electric energy services |
(1,760,493) |
(3,617,482) |
(1,880,188) |
(3,546,156) |
3.04.01 |
Electric energy purchased for resale |
(1,230,627) |
(2,555,142) |
(1,329,525) |
(2,535,143) |
3.04.02 |
Electric energy network usage charges |
(298,289) |
(610,876) |
(309,228) |
(546,198) |
3.04.03 |
Personnel |
(85,585) |
(173,149) |
(87,196) |
(163,091) |
3.04.04 |
Employee pension plans |
21,800 |
43,599 |
(921) |
(1,840) |
3.04.05 |
Material |
(15,704) |
(29,069) |
(13,205) |
(25,276) |
3.04.06 |
Outsourced services |
(46,735) |
(82,150) |
(40,674) |
(74,300) |
3.04.07 |
Depreciation and amortization |
(88,640) |
(177,617) |
(88,166) |
(175,518) |
3.04.08 |
Other |
(15,446) |
(30,642) |
(10,038) |
(22,208) |
3.04.09 |
Cost of services rendered to third parties |
(1,267) |
(2,436) |
(1,235) |
(2,582) |
3.05 |
Gross operating income |
879,516 |
1,807,591 |
768,285 |
1,488,285 |
3.06 |
Operating income (expense) |
(278,812) |
(591,595) |
(313,227) |
(579,509) |
3.06.01 |
Sales and marketing |
(79,948) |
(143,858) |
(68,115) |
(115,807) |
3.06.02 |
General and administrative |
(69,583) |
(187,924) |
(89,898) |
(187,838) |
3.06.03 |
Financial income (expense) |
(73,988) |
(149,983) |
(93,835) |
(156,795) |
3.06.03.01 |
Financial income |
107,277 |
206,173 |
73,853 |
193,128 |
3.06.03.02 |
Financial expenses |
(181,265) |
(356,156) |
(167,688) |
(349,923) |
3.06.03.02.01 |
Financial expenses |
0 |
0 |
(167,279) |
(349,514) |
3.06.03.02.02 |
Interest on Shareholders Equity |
0 |
0 |
(409) |
(409) |
3.06.04 |
Other operating income |
0 |
0 |
0 |
0 |
3.06.05 |
Other operating expenses |
(55,293) |
(109,830) |
(61,379) |
(119,069) |
3.06.05.01 |
Amortization of intangible asset of concession |
(46,203) |
(90,891) |
(46,724) |
(93,449) |
3.06.05.02 |
Other operating expense |
(9,090) |
(18,939) |
(14,655) |
(25,620) |
3.06.06 |
Equity in subsidiaries |
0 |
0 |
0 |
0 |
3.07 |
Operating income |
600,704 |
1,215,996 |
455,058 |
908,776 |
3.08 |
Nonoperating income (expense) |
0 |
0 |
0 |
0 |
3.08.01 |
Nonoperating income |
0 |
0 |
0 |
0 |
3.08.02 |
Nonoperating expense |
0 |
0 |
0 |
0 |
3.09 |
Income before taxes on income and profit sharing |
600,704 |
1,215,996 |
455,058 |
908,776 |
3.10 |
Income tax and social contribution |
(174,348) |
(384,990) |
(117,980) |
(254,320) |
3.10.01 |
Social contribution |
(46,520) |
(102,080) |
(31,000) |
(67,831) |
3.10.02 |
Income tax |
(127,828) |
(282,910) |
(86,980) |
(186,489) |
3.11 |
Deferred income tax and social contribution |
(39,703) |
(51,735) |
(45,820) |
(78,409) |
3.11.01 |
Social contribution |
(10,268) |
(14,247) |
(11,885) |
(20,229) |
3.11.02 |
Income tax |
(29,435) |
(37,488) |
(33,935) |
(58,180) |
3.12 |
Statutory profit sharing/contributions |
0 |
0 |
0 |
0 |
3.12.01 |
Profit sharing |
0 |
0 |
0 |
0 |
3.12.02 |
Contributions |
0 |
0 |
0 |
0 |
3.13 |
Reversal of interest on shareholders equity |
0 |
0 |
409 |
409 |
3.14 |
Noncontrolling shareholders interest |
(2,423) |
(4,842) |
(2,699) |
(4,785) |
3.15 |
Net income |
384,230 |
774,429 |
288,968 |
571,671 |
|
SHARES OUTSTANDING EX-TREASURY STOCK (units) |
481,137,130 |
481,137,130 |
479,910,938 |
479,910,938 |
|
NET INCOME PER SHARE (Reais) |
0,79859 |
1,60958 |
0,60213 |
1,19120 |
|
LOSS PER SHARE (Reais) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - Code |
2 - Description |
3 04/01/2010 to 06/30/2010 |
4 01/01/2010 to 06/30/2010 |
5 04/01/2009 to 06/30/2009 |
6 01/01/2009 to 06/30/2009 |
4.01 |
Net cash from operating activities |
498,365 |
1,164,401 |
619,163 |
911,944 |
4.01.01 |
Cash generated from operations |
816,356 |
1,687,423 |
745,062 |
1,499,014 |
4.01.01.01 |
Net income, including income tax and social contribution |
598,281 |
1,211,154 |
452,768 |
904,400 |
4.01.01.02 |
Interest of noncontrolling shareholders |
2,423 |
4,842 |
2,699 |
4,785 |
4.01.01.03 |
Depreciation and amortization |
142,822 |
284,443 |
143,736 |
286,754 |
4.01.01.04 |
Reserve for contingencies |
(38,244) |
(34,651) |
6,471 |
6,671 |
4.01.01.05 |
Interest and monetary and exchange restatement |
130,640 |
261,693 |
130,297 |
281,687 |
4.01.01.06 |
Gain / (loss) on pension plan |
(21,800) |
(43,599) |
921 |
1,840 |
4.01.01.07 |
Equity in subsidiaries |
0 |
0 |
0 |
0 |
4.01.01.08 |
Losses on disposal of noncurrent assets |
2,513 |
3,944 |
7,784 |
11,288 |
4.01.01.09 |
Deferred taxes - PIS and COFINS |
(279) |
(403) |
386 |
1,589 |
4.01.02 |
Variation on assets and liabilities |
(317,991) |
(523,022) |
(125,899) |
(587,070) |
4.01.02.01 |
Consumers, Concessionaires and Licensees |
(13,606) |
(47,092) |
(19,866) |
(101,171) |
4.01.02.02 |
Recoverable Taxes |
(45,486) |
(28,179) |
1,173 |
(689) |
4.01.02.03 |
Deferred Tariff Costs Variations |
95,339 |
102,891 |
322,050 |
238,907 |
4.01.02.04 |
Escrow deposits |
(4,944) |
(27,462) |
(5,913) |
(4,501) |
4.01.02.05 |
Overcontracting |
(43,473) |
(34,732) |
(18,702) |
(14,213) |
4.01.02.06 |
Other operating assets |
(33,949) |
(52,206) |
(5,430) |
4,594 |
4.01.02.07 |
Suppliers |
73,089 |
35,747 |
(26,930) |
(21,734) |
4.01.02.08 |
Taxes and social contributions paid |
(154,672) |
(333,477) |
(130,213) |
(304,814) |
4.01.02.09 |
Other taxes and social contributions |
(35,886) |
(18,754) |
(9,671) |
8,588 |
4.01.02.10 |
Deferred Tariff Gains Variations |
(100,207) |
29,954 |
(54,183) |
(48,581) |
4.01.02.11 |
Employee Pension Plans |
(16,422) |
(38,625) |
(11,440) |
(35,512) |
4.01.02.12 |
Interest paid on debt |
(84,970) |
(231,125) |
(126,565) |
(260,094) |
4.01.02.13 |
Regulatory Charges |
9,679 |
46,708 |
(5,146) |
(21,932) |
4.01.02.14 |
Overcontracting |
(117,220) |
(95,371) |
(42,665) |
153 |
4.01.02.15 |
Other operating liabilities |
154,737 |
168,701 |
7,602 |
(26,071) |
4.01.03 |
Other |
0 |
0 |
0 |
0 |
4.02 |
Net cash in investing activities |
(425,571) |
(702,841) |
(256,664) |
(499,400) |
4.02.01 |
Acquisition of Interest in subsidiaries |
(117) |
(117) |
(133) |
(133) |
4.02.02 |
Addition to property, plant and equipment |
(433,624) |
(707,893) |
(265,350) |
(526,498) |
4.02.03 |
Financial investments |
14,555 |
17,746 |
30,948 |
41,939 |
4.02.04 |
Increase of special obligations |
17,794 |
31,004 |
10,248 |
24,386 |
4.02.05 |
Acquisition of intangible assets other |
(22,538) |
(46,114) |
(21,263) |
(32,772) |
4.02.06 |
Sale of noncurrent assets |
1,857 |
4,709 |
3,605 |
7,454 |
4.02.07 |
Other |
(3,498) |
(2,176) |
(14,719) |
(13,776) |
4.03 |
Net cash in financing activities |
(382,397) |
(559,636) |
(500,333) |
(419,335) |
4.03.01 |
Loans, financing and debentures obtained |
640,541 |
800,102 |
667,864 |
904,330 |
4.03.02 |
Payments of Loans, financing and debentures , net of derivatives |
(366,860) |
(700,660) |
(560,547) |
(715,986) |
4.03.03 |
Dividend and interest on shareholders equity paid |
(656,078) |
(659,078) |
(607,650) |
(607,679) |
4.04 |
Exchange variation on cash and cash equivalents |
0 |
0 |
0 |
0 |
4.05 |
Increase (decrease) in cash and cash equivalents |
(309,603) |
(98,076) |
(137,834) |
(6,791) |
4.05.01 |
Cash and cash equivalents at beginning of period |
1,684,702 |
1,473,175 |
868,890 |
737,847 |
4.05.02 |
Cash and cash equivalents at end of period |
1,375,099 |
1,375,099 |
731,056 |
731,056 |
16
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - Code |
2 Description |
3 - Capital |
4 Capital Reserves |
5 Revaluation Reserves |
6 Profit Reserves |
7 Retained earnings |
8 Equity valuation adjustments |
9 Shareholders Equity Total |
5.01 |
Opening balance |
4,741,175 |
16 |
0 |
341,751 |
390,199 |
0 |
5,473,141 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
0 |
341,751 |
390,199 |
0 |
5,473,141 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
384,230 |
0 |
384,230 |
5.05 |
Distribution |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.01 |
Dividend |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.02 |
Interest on shareholders equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.03 |
Other distributions |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.01 |
Adjustment of financial Investments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.02 |
Adjustment of cumulative translation |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.03 |
Adjustment of business combinations |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.08 |
Increase/Decrease on capital |
52,249 |
0 |
0 |
0 |
0 |
0 |
52,249 |
5.09 |
Constitution/Realization of capital reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.10 |
Treasury shares |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.11 |
Other transactions of capital |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.12 |
Other |
0 |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
2,977 |
0 |
5,138,168 |
17
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - Code |
2 Description |
3 - Capital |
4 Capital Reserves |
5 Revaluation Reserves |
6 Profit Reserves |
7 Retained earnings |
8 Equity valuation adjustments |
9 Shareholders Equity Total |
5.01 |
Opening balance |
4,741,175 |
16 |
0 |
341,751 |
0 |
0 |
5,082,942 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
0 |
341,751 |
0 |
0 |
5,082,942 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
774,429 |
0 |
774,429 |
5.05 |
Distribution |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.01 |
Dividend |
0 |
0 |
0 |
0 |
(774,429) |
0 |
(774,429) |
5.05.02 |
Interest on shareholders equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.03 |
Other distributions |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.01 |
Adjustment of financial Investments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.02 |
Adjustment of cumulative translation |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07.03 |
Adjustment of business combinations |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.08 |
Increase/Decrease on capital |
52,249 |
0 |
0 |
0 |
0 |
0 |
52,249 |
5.09 |
Constitution/Realization of capital reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.10 |
Treasury shares |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.11 |
Other transactions of capital |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.12 |
Other |
0 |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
2,977 |
0 |
5,138,168 |
18
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
06.01 NOTES TO THE INTERIM FINANCIAL STATEMENTS
CPFL ENERGIA S.A.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AS OF JUNE 30, 2010
(Amounts stated in thousands of Brazilian reais, except where otherwise indicated)
( 1 ) OPERATIONS
CPFL Energia S.A. (CPFL Energia or Company) is a publicly quoted corporation incorporated for the principal purpose of acting as a holding company, participating in the capital of other companies primarily dedicated to electric energy distribution, generation and sales activities.
The Company has direct and indirect interests in the following subsidiaries, allocated by line of business:
June 30, 2010 |
March 31, 2010 | |||||||||
Subsidiary |
Consolidation Method |
Equity Interest - % |
Equity Interest - % | |||||||
|
Direct |
Indirect |
Direct |
Indirect | ||||||
Energy Distribution |
||||||||||
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Full |
100.00 |
- |
100.00 |
- | |||||
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Full |
100.00 |
- |
100.00 |
- | |||||
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Full |
100.00 |
- |
99.99 |
- | |||||
Rio Grande Energia S.A. ("RGE") |
Full |
100.00 |
- |
100.00 |
- | |||||
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Full |
100.00 |
- |
95.92 |
- | |||||
Companhia Jaguari de Energia ("CPFL Jaguari") |
Full |
100.00 |
- |
87.27 |
- | |||||
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Full |
100.00 |
- |
86.73 |
- | |||||
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Full |
100.00 |
- |
86.73 |
- | |||||
Energy Generation |
||||||||||
CPFL Geração de Energia S.A. ("CPFL Geração") |
Full |
100.00 |
- |
100.00 |
- | |||||
CPFL Sul Centrais Elétricas Ltda. ("CPFL Sul Centrais Elétricas") |
Full |
- |
100.00 |
- |
100.00 | |||||
CPFL Bioenergia S.A. ("CPFL Bioenergia") |
Full |
- |
100.00 |
- |
100.00 | |||||
CPFL Bio Formosa S.A. ("CPFL Bio Formosa") |
Full |
- |
100.00 |
- |
100.00 | |||||
CPFL Bio Buriti S.A. ("CPFL Bio Buriti") |
Full |
- |
100.00 |
- |
100.00 | |||||
CPFL Bio Ipê S.A. ("CPFL Bio Ipê") |
Full |
- |
100.00 |
- |
100.00 | |||||
CPFL Bio Pedra S.A. ("CPFL Bio Pedra") |
Full |
- |
100.00 |
- |
100.00 | |||||
Paulista Lajeado Energia S.A. ("Paulista Lajeado") |
Full |
- |
52.34 |
- |
52.34 | |||||
Santa Clara I Energias Renováveis Ltda. ("Santa Clara I") |
Full |
- |
100.00 |
- |
100.00 | |||||
Santa Clara II Energias Renováveis Ltda. ("Santa Clara II") |
Full |
- |
100.00 |
- |
100.00 | |||||
Santa Clara III Energias Renováveis Ltda. ("Santa Clara III") |
Full |
- |
100.00 |
- |
100.00 | |||||
Santa Clara IV Energias Renováveis Ltda. ("Santa Clara IV") |
Full |
- |
100.00 |
- |
100.00 | |||||
Santa Clara V Energias Renováveis Ltda. ("Santa Clara V") |
Full |
- |
100.00 |
- |
100.00 | |||||
Santa Clara VI Energias Renováveis Ltda. ("Santa Clara VI") |
Full |
- |
100.00 |
- |
100.00 | |||||
Eurus VI Energias Renováveis Ltda. ("Eurus VI") |
Full |
- |
100.00 |
- |
100.00 | |||||
BAESA - Energética Barra Grande S.A. ("BAESA") |
Proportionate |
- |
25.01 |
- |
25.01 | |||||
Campos Novos Energia S.A. ("ENERCAN") |
Proportionate |
- |
48.72 |
- |
48.72 | |||||
CERAN - Companhia Energética Rio das Antas ("CERAN") |
Proportionate |
- |
65.00 |
- |
65.00 | |||||
Foz do Chapecó Energia S.A. ("Foz do Chapecó") |
Proportionate |
- |
51.00 |
- |
51.00 | |||||
Centrais Elétricas da Paraíba S.A.- EPASA ("EPASA") |
Proportionate |
- |
51.00 |
- |
51.00 | |||||
Energy Commercialization and Services |
||||||||||
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Full |
100.00 |
- |
100.00 |
- | |||||
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional") |
Full |
- |
100.00 |
- |
100.00 | |||||
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Full |
- |
100.00 |
- |
100.00 | |||||
Sul Geradora Participações S.A. ("Sul Geradora") |
Full |
- |
99.95 |
- |
99.95 | |||||
CPFL Planalto Ltda. ("CPFL Planalto") |
Full |
100.00 |
- |
100.00 |
- | |||||
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Full |
100.00 |
- |
100.00 |
- | |||||
CPFL Serviços, Equipamentos, Industria e Comércio S.A. ("CPFL Serviços") |
Full |
100.00 |
- |
87.82 |
- | |||||
Holding Company |
||||||||||
Chumpitaz Participações S.A. ("Chumpitaz") |
Full |
100.00 |
- |
100.00 |
- | |||||
CPFL Jaguariuna S.A. ("CPFL Jaguariuna") |
Full |
100.00 |
- |
100.00 |
- | |||||
Companhia Jaguari de Geração de Energia ("Jaguari Geração") |
Full |
100.00 |
- |
87.34 |
- | |||||
Chapecoense Geração S.A. ("Chapecoense") |
Proportionate |
- |
51.00 |
- |
51.00 |
19
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS
The individual (Parent Company) and consolidated quarterly financial statements are presented in thousands of Brazilian reais, except where otherwise indicated, and were prepared in accordance with (i) generally accepted accounting principles in Brazil, and the standards published by the Brazilian Securities Commission (CVM) applicable to quarterly financial statements, having fully complied with all the concepts introduced by Law nº 11,638/07 and Law 11,941/09 and (ii) the Accounting Manual of the Public Electric Energy Service and other regulations laid down by ANEEL.
The Company and its subsidiaries opted to apply Article 1 of CVM Decision nº 603/09, which allows publicly-held companies to present their 2010 Quarterly Financial Statements ITR in accordance with the accounting standards in force as of December 31, 2009, without yet reflecting the full effects of the process of adjustment to international accounting standards.
Accordingly, the accounting practices and criteria adopted in preparation of these quarterly financial statements are consistent with those followed in preparing the Financial Statements at December 31, 2009, and should therefore be analyzed as a whole.
The main changes in accounting practices to be introduced by the Pronouncements, Interpretations and Guidelines issued by the Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis CPC) and approved by the Brazilian Securities Commission - CVM in 2009 are currently being analyzed by the Company and its subsidiaries, while awaiting market decisions as to the application of certain standards. However, the preliminary results of this analysis indicate that the standards that will have the greatest impact on the Financial Statements are:
i. ICPC 01 Concession Contracts: This Interpretation defines the form of accounting for the assets of concessions when certain conditions are met. The Companys preliminary understanding is that this Interpretation is applicable to the concessions relating to electric energy distribution services. The most likely impact on the Financial Statements will be the transfer of the balances of Fixed Assets and Special Obligations to (a) the Intangible Asset in relation to the right to charge consumers a tariff (right to exploit the concession), and/or (b) recording of a Financial Asset, representing the Companys unconditional right to receive payment.
Due to the complexity of these changes, the Company and its subsidiaries are evaluating the impacts of applying the Interpretation in their Financial Statements; they have also taken part in discussions and debates with other agents from the electric energy sector, regulatory bodies and class associations.
ii. CPC 26 Presentation of the Financial Statements: This Pronouncement establishes guidelines and minimum requirements for structure, content and presentation of the financial statements. The Company and its subsidiaries are examining any possible impacts of this Pronouncement, particularly as regards changes in individual accounting statements, such as, for example, the inclusion of Other Comprehensive Income in the Income Statement and the Statement of Changes in Shareholders Equity and separating the participation of controlling shareholders from that of noncontrolling shareholders in these statements.
iii. CPC 27 Fixed Assets: This Pronouncement establishes the main points to be considered in accounting for a fixed asset, including the composition of the costs and methods permitted for calculating depreciation. The Company and its subsidiaries are also analyzing ICPC Interpretation 10 Interpretation regarding Initial Adoption of Technical Pronouncements CPCs 27, 28, 37 e 43 to the Fixed Assets and Investment Properties and the possible impacts on the balance of Fixed Assets at the transition date.
20
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
iv. CPC 33 Employee Benefits: This Pronouncement concerns accounting for and disclosure of the benefits granted to employees. Due to the complexity of the accounting procedures defined in this regulation, the Company and its subsidiaries are analyzing the best alternative accounting methods, as required by the Pronouncement.
v. CPC 18 Investment in Associated and Subsidiary Companies and CPC 19 Joint Ventures: these Pronouncements deal with the classification and subsequent recording of the permanent corporate interests held by an entity. Certain of our ventures which, under the current rules, are regarded as Joint Ventures and accordingly consolidated proportionally, may need to be registered as Associated Companies, and their income recorded by the equity accounting method.
As mentioned above, due to the uncertainties as to the application of certain standards, reliable estimates of the impacts are at present impracticable.
2.1 Consolidation Principles
The consolidated quarterly financial statements include the balances and transactions of the Company and its subsidiaries. The asset, liability, income and expense balances were fully consolidated.
Prior to consolidation into the Company's financial statements, the financial statements of CPFL Geração, CPFL Brasil and CPFL Jaguari Geração are consolidated with those of their subsidiaries, fully or proportionally (in the case of jointly-controlled subsidiaries).
The portion relating to the noncontrolling shareholders is stated separately in liabilities and income statements for the periods presented.
All significant intercompany balances and transactions have been eliminated.
21
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 3 ) REGULATORY ASSETS AND LIABILITIES
Consolidated |
||||||||||||
June 30, 2010 |
March 31, 2010 | |||||||||||
Current |
Noncurrent |
Total |
Current |
Noncurrent |
Total | |||||||
Assets |
|
|||||||||||
Consumers, Concessionaires and Licensees (note 5) |
||||||||||||
Free energy |
3,673 |
- |
3,673 |
3,594 |
23 |
3,617 | ||||||
Discounts TUSD (*) and Irrigation |
15,453 |
6,658 |
22,111 |
11,990 |
4,838 |
16,828 | ||||||
19,126 |
6,658 |
25,784 |
15,584 |
4,861 |
20,445 | |||||||
Deferred Costs Variations |
||||||||||||
Parcel "A" |
999 |
- |
999 |
1,333 |
- |
1,333 | ||||||
CVA (**) |
225,091 |
46,645 |
271,736 |
335,976 |
30,765 |
366,741 | ||||||
226,090 |
46,645 |
272,735 |
337,309 |
30,765 |
368,074 | |||||||
Prepaid Expenses (note 9) |
||||||||||||
Increase in PIS and COFINS |
- |
- |
- |
259 |
- |
259 | ||||||
Overcontracting |
51,844 |
2,188 |
54,032 |
68,353 |
2,399 |
70,752 | ||||||
Low income consumers' subsidy - Losses |
26,094 |
37,816 |
63,910 |
21,642 |
35,807 |
57,449 | ||||||
Neutrality of the sector charges |
374 |
523 |
897 |
483 |
- |
483 | ||||||
Tariff adjustment |
30,560 |
- |
30,560 |
- |
- |
- | ||||||
Other financial components |
55,694 |
3,048 |
58,742 |
29,202 |
6,523 |
35,725 | ||||||
164,566 |
43,575 |
208,141 |
119,939 |
44,729 |
164,668 | |||||||
Liabilities |
||||||||||||
Suppliers (note 17) |
||||||||||||
Free energy |
(67,547) |
- |
(67,547) |
(66,077) |
- |
(66,077) | ||||||
Deferred Gains Variations |
||||||||||||
Parcel "A" |
(34,276) |
(62) |
(34,338) |
(45,685) |
(87) |
(45,772) | ||||||
CVA |
(302,437) |
(115,333) |
(417,770) |
(441,983) |
(64,560) |
(506,543) | ||||||
(336,713) |
(115,395) |
(452,108) |
(487,668) |
(64,647) |
(552,315) | |||||||
Other Accounts Payable (note 22) |
||||||||||||
Tariff review |
(23,385) |
- |
(23,385) |
(49,315) |
- |
(49,315) | ||||||
Discounts TUSD and Irrigation |
(2,599) |
(455) |
(3,054) |
(3,024) |
(249) |
(3,273) | ||||||
Tariff adjustment |
(10,882) |
- |
(10,882) |
(14,530) |
- |
(14,530) | ||||||
Increase in PIS and COFINS |
- |
- |
- |
(126,129) |
- |
(126,129) | ||||||
Overcontracting |
(27,879) |
(19,800) |
(47,679) |
(20,888) |
(25,231) |
(46,119) | ||||||
Low income consumers' subsidy - Gains |
(6,022) |
- |
(6,022) |
(5,890) |
- |
(5,890) | ||||||
Neutrality of the sector charges |
(14,630) |
(12,826) |
(27,456) |
(5,320) |
(2,588) |
(7,908) | ||||||
Other financial components |
(34,103) |
(782) |
(34,885) |
(16,703) |
(716) |
(17,419) | ||||||
(119,500) |
(33,863) |
|
(153,363) |
(241,799) |
(28,784) |
(270,583) | ||||||
Total net |
(113,978) |
(52,380) |
(166,358) |
(322,712) |
(13,076) |
(335,788) | ||||||
(*) Network Usage Charge - TUSD |
||||||||||||
(**) Deferred Tariff Costs and Gains Variations from Parcel "A" itens - ("CVA") |
a) Rationing (RTE, Free Energy and Parcel A)
At the end of 2001, as a result of the Emergency Program for the Reduction of Electric Energy Consumption, in effect between June 2001 and February 2002, the generators, the power distributors and the Federal Government signed the "Overall Agreement for the Electric Energy Sector". This agreement introduced, as a mechanism by which to reimburse the energy sector for the losses incurred as a result of this program, an Extraordinary Tariff Increase of 2.9% on energy supplied to residential consumers (except those regarded as "low income consumers") rural consumers and for public lighting, and 7.9% for all other consumers.
22
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
a.1) Electric energy from Independent Suppliers (Free Energy)
Free Energy corresponds to the energy produced and made available to the consumer market during the rationing period by the generators, independent producers and own-power producers of energy.
The distribution utilities collected the funds from the consumer through the extraordinary tariff adjustment and passed them on to the suppliers of electric energy, according to percentages established for each concessionaire. Accordingly, a regulatory asset and liability were recorded and these amounts restated in accordance with ANEELs instructions.
On December 15, 2009, ANEEL issued Regulatory Resolution nº 387/2009 which establishes a new method for calculating the outstanding balances of Loss of Revenue and Free Energy after expiry of the RTE charge, with the objective of ensuring fairness to generators and distributors of electric energy as regards the calculation of the losses resulting from the collection of RTE from the final consumer.
On the basis of this new calculation, the subsidiaries CPFL Paulista, CPFL Piratininga and CPFL Sul Paulista increased, in 2009, the liability relating to free energy by R$ 32,592. In the quarter ending March 31, 2010, the subsidiaries CPFL Paulista and CPFL Piratininga recorded additional adjustments of R$ 48 and R$ 2,479 as Other Operating Expenses, in respect of the principal.
Using the same methodology, the subsidiaries CPFL Jaguari and CPFL Santa Cruz recorded assets of R$ 3,244 in 2009.
After these adjustments and the amortization and restatement for the period, the net balance at June 30, 2010 stood at R$ 63,874 (R$ 62,460 as of March 31, 2010).
The results of the new calculation were sent to ANEEL, which published Dispatch No. 1,450 on May 19, 2010, requesting reconciliation of the free energy figures from the distributors and generators. ANEEL will issue a final dispatch, which will serve as the basis for the financial settlement to be made with the generators.
a.2) Parcel A
Corresponds to the variation in the non-manageable costs representing Parcel "A" of the concession contracts, between January 1 and October 25, 2001.
In the case of the subsidiaries CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari and RGE, the balances of Parcel A were totally amortized in November 2009, May 2008, November 2007, September 2005, March 2007, August 2005 and July 2004, respectively.
In view of the need for billing to cover the full monthly cycle, the subsidiaries CPFL Paulista, CPFL Sul Paulista, CPFL Leste Paulista and CPFL Mococa charged more than the balances due, and the reimbursement of these amounts has been taken into consideration in the next tariff adjustments. As of June 30, 2010, the net liability to consumers stood at R$ 33,339 (R$ 44,439 as of March 31, 2010).
b) Tariff Review and Tariff Adjustment
b.1) 2nd cycle of Tariff Review
23
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
ANEEL provisionally established the tariff adjustment and the financial components for the tariff review on February 3, 2008 for the subsidiaries CPFL Santa Cruz, CPFL Jaguari, CPFL Mococa, CPFL Leste Paulista and CPFL Sul Paulista, on April 8, 2008 for the subsidiary CPFL Paulista, on April 19, 2008 for RGE and on October 23, 2007 for the subsidiary CPFL Piratininga.
In the case of all the companies, the provisional nature of the tariff review is due to the Reference Company and the Xe factor. Additionally, the remuneration bases of the subsidiaries RGE and CPFL Santa Cruz were also on a provisional basis, while the financial component for the subsidiaries CPFL Paulista and CPFL Piratininga were linked to overcontracting.
The final approval occurred in the subsequent tariff adjustments, when ANEEL recalculated the adjustments and decided to reposition the tariff review of the distributors. As a result, the distributors recognized regulatory liabilities totaling R$ 165,707 between 2008 and 2009, in respect of amounts that are already being refunded to consumers.
This repositioning caused a negative impact of R$ 32,529 in the first quarter of 2009, mainly as a result of the liabilities recorded for RGE and CPFL Paulista, amounting to R$ 22,428 and R$ 11,979, respectively, and in the 3rd quarter it caused an adverse impact of R$ 90,721 (pro-rata as of September 30, 2009 of the amount relating to two tariff periods of R$ 93,540), as a result of the liabilities recorded for CPFL Piratininga
b.2) Tariff Adjustment 2009 and 2010
The 2009 and 2010 tariff adjustments for the distribution subsidiaries that impacted the result for the quarter ended June 30, 2010 are as follows:
Tariff Adjustment 2009 (IRT 2009):
CPFL Santa Cruz |
CPFL Jaguari |
CPFL Mococa |
CPFL Leste Paulista |
CPFL Sul Paulista |
CPFL Paulista |
RGE |
CPFL Piratininga | ||||||||
Verified Revenue |
192,302 |
77,004 |
47,999 |
73,724 |
87,327 |
4,640,667 |
1,902,839 |
2,267,755 | |||||||
Sector Charges |
23,419 |
13,993 |
5,932 |
9,573 |
13,090 |
690,911 |
222,227 |
341,928 | |||||||
Purchase of ElectricEnergy |
97,221 |
41,213 |
23,441 |
29,413 |
42,637 |
2,793,363 |
1,089,099 |
1,098,860 | |||||||
Energy Transmission |
19,238 |
9,647 |
5,594 |
8,727 |
11,092 |
425,052 |
201,789 |
266,754 | |||||||
Parcel A |
139,878 |
64,853 |
34,967 |
47,713 |
66,819 |
3,909,326 |
1,513,115 |
1,707,542 | |||||||
Parcel B |
72,974 |
20,626 |
18,083 |
33,810 |
30,810 |
1,361,615 |
588,468 |
623,920 | |||||||
Income Required (Parc. A + B) |
212,852 |
85,479 |
53,050 |
81,523 |
97,629 |
5,270,941 |
2,101,583 |
2,331,462 | |||||||
Financial Components |
28,530 |
300 |
351 |
1,924 |
(149) |
402,812 |
178,722 |
73,878 | |||||||
CVA |
5,310 |
1,735 |
1,305 |
(1,709) |
1,306 |
232,828 |
113,340 |
110,116 | |||||||
Overcontracting |
9 |
- |
- |
- |
- |
28,125 |
(1,949) |
7,865 | |||||||
Advances |
25,375 |
126 |
422 |
1,527 |
399 |
117,093 |
138,013 |
41,809 | |||||||
Low income subsidy |
- |
- |
- |
- |
- |
33,047 |
1,519 |
1,090 | |||||||
Discounts on TUSD and Irrigation Subsidy |
(771) |
- |
22 |
852 |
43 |
6,122 |
1,625 |
3,010 | |||||||
Connection and Frontier Charges / CUSD |
(81) |
(199) |
(76) |
2,358 |
(119) |
3,932 |
(2,073) |
357 | |||||||
Tariff review recalculation - 2008 |
(3,546) |
(1,058) |
(1,089) |
(780) |
(1,694) |
(11,979) |
(50,899) |
(93,540) | |||||||
Provision Subsidy for Cooperatives |
- |
- |
- |
- |
- |
- |
(16,178) |
4,417 | |||||||
CCEAR exposure |
(56) |
- |
- |
- |
- |
(5,534) |
- |
(577) | |||||||
Other |
2,290 |
(304) |
(233) |
(324) |
(84) |
(822) |
(4,676) |
(669) | |||||||
Financial Repositioning |
10.69% |
11.01% |
10.52% |
10.58% |
11.80% |
13.58% |
10.44% |
2.81% | |||||||
Financial Components |
13.40% |
0.35% |
0.66% |
2.36% |
-0.16% |
7.64% |
8.50% |
3.17% | |||||||
Total Repositioning |
24.09% |
11.36% |
11.18% |
12.94% |
11.64% |
21.22% |
18.95% |
5.98% | |||||||
XFactor |
1.05% |
2.81% |
1.14% |
1.44% |
1.43% |
1.19% |
0.18% |
-1.36% | |||||||
Effect perceived by consumers (*) |
11.85% |
9.40% |
5.59% |
10.61% |
10.23% |
21.56% |
3.43% |
-2.12% | |||||||
Ratification Resolution - ANEEL |
770/2009 |
767/2009 |
768/2009 |
771/2009 |
769/2009 |
795/2009 |
810/2009 |
896/2009 | |||||||
Tariff review date |
Feb 3, 2009 |
Feb 3, 2009 |
Feb 3, 2009 |
Feb 3, 2009 |
Feb 3, 2009 |
Apr 8, 2009 |
Apr 19, 2009 |
Oct 23, 2009 | |||||||
(*)The average effect perceived by consumers, as a result of removal from the tariff base of the financial components added in the previous tariff adjustment. |
24
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Tariff Adjustment 2010 (IRT 2010):
CPFL Santa Cruz |
CPFL Jaguari |
CPFL Mococa |
CPFL Leste Paulista |
CPFL Sul Paulista |
CPFL Paulista |
RGE | |||||||
Verified Revenue |
221,437 |
88,633 |
56,218 |
91,434 |
101,099 |
5,427,276 |
2,147,707 | ||||||
Sector Charges |
31,038 |
18,405 |
7,646 |
11,843 |
16,653 |
916,487 |
286,131 | ||||||
Purchase of Electric Energy |
93,597 |
41,422 |
23,124 |
11,730 |
41,132 |
2,663,385 |
1,057,095 | ||||||
Energy Transmission |
25,155 |
12,919 |
7,356 |
27,784 |
14,641 |
505,917 |
224,595 | ||||||
Parcel A |
149,790 |
72,746 |
38,126 |
51,357 |
72,426 |
4,085,789 |
1,567,821 | ||||||
Parcel B |
75,845 |
21,036 |
20,425 |
34,301 |
33,026 |
1,425,548 |
616,742 | ||||||
Income Required (Parc. A + B) |
225,635 |
93,782 |
58,551 |
85,658 |
105,452 |
5,511,337 |
2,184,563 | ||||||
Financial Components |
18,485 |
(608) |
(101) |
(5,904) |
1,432 |
63,508 |
232,719 | ||||||
Advances |
23,504 |
124 |
374 |
1,223 |
1,644 |
130,359 |
161,669 | ||||||
Financial adjustment previous tariff adjustment |
(21) |
(247) |
(110) |
(123) |
137 |
(14,225) |
22,174 | ||||||
Financial adjustment TUSD-G |
- |
- |
- |
- |
- |
(11,747) |
(5,236) | ||||||
Additional R&D financial adjustment |
- |
- |
- |
- |
- |
4,242 |
3,023 | ||||||
CVA |
(1,851) |
(299) |
(154) |
(2,534) |
120 |
(89,180) |
(36,189) | ||||||
Discounts on TUSD and Irrigation Subsidy |
(315) |
- |
(101) |
(115) |
544 |
2,062 |
11,319 | ||||||
Discounts for Cooperatives |
- |
- |
- |
- |
- |
3,365 |
35,898 | ||||||
Connection and Frontier Charges/CUSD |
(154) |
122 |
(49) |
(178) |
(112) |
6,870 |
- | ||||||
Parcel "A" liability to be offset |
- |
- |
- |
- |
- |
(43,956) |
- | ||||||
Neutrality of Sector Charges |
- |
- |
- |
- |
- |
(1,628) |
(2,716) | ||||||
Recovery of subsidies |
2,478 |
91 |
262 |
234 |
277 |
- |
9,546 | ||||||
Overcontracting |
(1,591) |
(418) |
(274) |
(922) |
(349) |
67,619 |
28,314 | ||||||
Other components |
(3,565) |
19 |
(49) |
(3,489) |
(829) |
9,727 |
4,917 | ||||||
Financial Repositioning |
1.90% |
5.81% |
4.15% |
-6.32% |
4.30% |
1.55% |
1.72% | ||||||
Financial Components |
8.19% |
-0.65% |
-0.17% |
-6.89% |
1.36% |
1.15% |
10.65% | ||||||
Total Repositioning |
10.09% |
5.16% |
3.98% |
-13.21% |
5.66% |
2.70% |
12.37% | ||||||
X Factor |
-2.15% |
-0.34% |
-2.33% |
-1.12% |
-1.30% |
0.08% |
-0.68% | ||||||
Effect perceived by consumers (*) |
-2.53% |
3.67% |
3.24% |
-8.47% |
4.94% |
-5.69% |
3.96% | ||||||
Ratification Resolution - ANEEL |
935/2010 |
937/2010 |
936/2010 |
939/2010 |
933/2010 |
961/2010 |
1009/2010 | ||||||
Tariff review date |
Feb 3, 2010 |
Feb 3, 2010 |
Feb 3, 2010 |
Feb 3, 2010 |
Feb 3, 2010 |
Apr 8, 2010 |
June 19, 2010 |
On account of the process of approval of the financial components in the tariff adjustment, the following main adjustments were recorded in the first quarter of 2010 by CPFL Paulista:
A regulatory asset of R$ 5,314 in respect of recalculation of energy overcontracting in 2008 and a regulatory liability of R$ 14,225 in respect of adjustment of the financial components (CVA and other regulatory assets and liabilities) overestimated by ANEEL in 2008.
On March 30, 2010, in Ratification Resolution nº 957, ANEEL changed the contractual date for the tariff adjustment and review of the subsidiary RGE, and extended the effective term of this concessionaires electric energy tariffs, stated in ratification resolution 810/2009, to June 18, 2010. This change was proposed by ANEEL in order for RGE's adjustment to be made on a more suitable date in the annual tariff adjustment calendar, to align the date of RGE's tariff adjustment in the annual tariff adjustment calendar with those of the concessionaires it supplies.
25
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
As such, as a result of the tariff adjustment, RGE recorded the following main adjustments in the second quarter of 2010: (i) a regulatory asset (composed of R$ 22,174 in respect of recalculation of the 2009 tariff adjustment as a result of ANEELs revision of the average pass-on price to be considered for energy purchases, and R$ 9,546, in respect of the increase in the subsidy to granted to the Cooperatives in the 2009 Tariff Adjustment; (ii) Subsidies Granted (Supplied, TUSD, Irrigation, Low Income Consumers) of R$ 8,169; and (iii) a liability in respect of the TUSD-G financial adjustment (R$ 5,236).
c) Financial components
c.1) Tariff review
As mentioned in note 3b.1, the 2nd cycle of tariff reviews for distributors was finally ratified by ANEEL during 2009. As such, liabilities have been recorded relating to the reimbursements that are being made to consumers, and these will be amortized in the accounts until the next Tariff Adjustment for each distributor.
c.2) Tariff Adjustment
As mentioned in note 3b.2, in the tariff adjustments of 2009 and 2010, some distributors had financial components granted in order to adjust earlier tariff adjustments. As such, assets and liabilities were recorded that are being amortized in the accounts until the next Tariff Adjustment for each distributor.
c.3) Discounts TUSD and Irrigation
The subsidiaries record regulatory assets and liabilities for the special discounts applied on the TUSD to the free consumers, in respect of electric energy supplied from alternative sources and on the tariffs for energy supplied for irrigation and aquaculture.
As tariff advances are granted in relation to the estimated discounts for the next tariff period, the difference between the forecast and the discount actually realized is recorded and offset in the next tariff adjustment.
c.4) CVA
Refers to the mechanism for offsetting the variations in unmanageable costs incurred by the electric energy distribution concessionaires. These variations are calculated in accordance with the difference between the expenses effectively incurred and the expenses estimated at the time of establishing the tariffs in the annual tariff adjustments. The amounts taken into consideration in the CVA are restated at the SELIC rate.
The net balances of CVA assets and liabilities, separated by type and accrual period, are shown below:
Consolidated | |||||||||||||||||||
June 30, 2010 |
March 31, 2010 | ||||||||||||||||||
Ratified |
Not Ratified |
Total |
Ratified |
Not Ratified |
Total | ||||||||||||||
2010 |
2009 |
2008 |
2010 |
2010 |
2009 |
2008 |
2010 |
||||||||||||
Itaipu pass-through |
(149,316) |
(10,584) |
(1,941) |
(131,157) |
(292,998) |
(104,850) |
(15,609) |
(3,490) |
(152,846) |
(276,795) | |||||||||
Electric energy costs |
(36,004) |
27,392 |
1,702 |
(7,173) |
(14,083) |
(83,241) |
56,655 |
3,061 |
(48,319) |
(71,844) | |||||||||
Proinfa |
7,396 |
7,562 |
229 |
(22,045) |
(6,858) |
6,028 |
14,610 |
412 |
1,924 |
22,974 | |||||||||
CCC |
44,017 |
5,085 |
278 |
40,528 |
89,908 |
33,141 |
11,521 |
500 |
54,550 |
99,712 | |||||||||
Transmission from Itaipu |
2,276 |
433 |
5 |
600 |
3,314 |
1,952 |
952 |
9 |
1,219 |
4,132 | |||||||||
Basic network |
70,379 |
4,354 |
259 |
5,130 |
80,122 |
63,815 |
9,985 |
466 |
24,155 |
98,421 | |||||||||
ESS |
(53,809) |
13,264 |
765 |
4,504 |
(35,276) |
(41,956) |
29,951 |
1,375 |
(30,319) |
(40,949) | |||||||||
CDE |
8,830 |
3,675 |
55 |
7,845 |
20,405 |
7,970 |
7,232 |
98 |
8,063 |
23,363 | |||||||||
EER - Reserve energy charge |
1,317 |
- |
- |
8,115 |
9,432 |
2 |
- |
- |
1,182 |
1,184 | |||||||||
(104,914) |
51,181 |
1,352 |
(93,653) |
(146,034) |
(117,139) |
115,297 |
2,431 |
(140,391) |
(139,802) |
26
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
c.5) Increase in PIS and COFINS Non-Cumulative Method
Refers to the difference between PIS and COFINS costs calculated in accordance with the current legislation, as understood by the subsidiaries and those effectively incorporated in the tariff.
In view of the taxation discussions involved, the subsidiaries conservatively opted to record in 2006 and 2007 a liability posted in Other Accounts Payable (note 22).
In light of the fiscal discussions on this topic, in June 2010 the subsidiaries decided to reclassify these amounts to Provisions for Contingencies (note 21).
c.6) Overcontracting
Electric energy distribution concessionaires are obliged to guarantee 100% of their energy and power market through contracts approved, registered and ratified by ANEEL, and are also assured that costs or income derived from overcontracting will be passed on to the tariffs, limited to 3% of the energy load requirement.
In relation to the 2009 Tariff Reviews of the subsidiaries CPFL Paulista and CPFL Piratininga, ANEEL regarding the transactions relating to the acquisition of electric energy in the CCEE, in 2008, as voluntary exposure, and therefore provisionally approved the amounts of R$ 32,006 and R$ 7,865, respectively, for CPFL Paulista and CPFL Piratininga, of the Overcontracting Asset, but did not recognize the other amounts of R$ 19,503 and R$ 52,302, originally recorded by the subsidiaries. While not agreeing with the Agency's position, the subsidiaries, conservatively, decided to reverse these amounts, crediting "Prepaid Expenses" and setting against "Costs - Cost of Electric Energy" (R$ 18,583 in the first quarter of 2009 and R$ 49,621 in the third quarter of 2009 and "Financial income" (R$ 920 in the first quarter of 2009 and R$ 2,681 in the third quarter of 2009). The amounts used in the tariff adjustments were provisionally adopted by ANEEL.
On April 6, 2010, in Order nº 899, ANEEL acknowledged the Application for Reconsideration filed by the subsidiaries to resume the discussions on analysis of the merit of the involuntary nature of the exposure to the short-term market, in 2008. Accordingly, the subsidiaries will have an opportunity to present its explanations and prove the involuntary exposure.
c.7) Low Income Consumers Subsidy
Since the subsidies granted to consumers are to be identified as from the second cycle of tariff reviews, ANEEL decided that, whenever possible, part of this subsidy will be reimbursed through the tariff in the sphere of the concessionaire itself, by taking the financial component into account in the tariff. If it is not possible to make the full reimbursement through the tariff, CDE funds will be transferred to complement the subsidy.
As tariff advances are made to cover in full the subsidies granted to consumers, the difference between the subsidy actually granted and the advance received is calculated monthly for accounting purposes and included in the next tariff adjustment.
Law no 12,212, of January 20, 2010, establishes the most recent guidelines for classification of consumers for the Social Electric Energy Tariff (Low Income).
27
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
The main change is that, under the new Law, consumers will be entitled to the Social Electric Energy Tariff (Low Income) if they are enrolled in the Sole Register for Federal Government Social (Cadastro Único para Programas Sociais do Governo Federal CadÚnico), irrespective of their energy consumption.
The Law establishes that ANEEL is to regulate (i) classification of new consumers within 180 days after enactment of the Law and (ii) the exclusion from the roster of beneficiaries of the Social Electric Energy Tariff of consumer units that will cease to be entitled as result of the Law within 24 months after its enactment. Accordingly, most general effects of the Law will only be felt after regulation by ANEEL.
c.8) Neutrality of the Sector Charges
On account of the Addendum to the Concession Contracts of the electric energy distributors, approved by the ANEEL Executive Board, which changed the tariff adjustment methodology in accordance with ANEEL Order nº 245, published in the Official Gazette of the Federal Executive on February 5, 2010, the sector charges will no longer affect the tariff. The monthly differences between the amounts billed and the amounts considered in the tariff adjustment will be recorded as regulatory assets and liabilities, bearing interest at the SELIC rate.
c.9) Other financial components
Mainly refers to CCEAR exposure, financial guarantees, subsidies to cooperatives and licensees and the TUSD G financial adjustment.
28
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Changes in regulatory assets and liabilities during the quarters ended June 30, 2010 and 2009 are shown in the tables below:
2010 |
|||||||||||||||||||||||||||||
Consolidated | |||||||||||||||||||||||||||||
March 31, 2010 |
Operating reveue |
Cost of electric energy services |
Deductions from operating revenue |
Operating expense |
Cash |
Financial income (expense) |
June 30, 2010 | ||||||||||||||||||||||
Deferral |
|
Amort. |
Deferral |
|
Amort. |
Deferral |
|
Amort. |
Deferral |
|
Amort. |
|
Provision for losses |
Amort. |
Deferral |
|
Remuner. |
Transfer |
|||||||||||
Free energy |
(62,460) |
- |
- |
- |
- |
- |
- |
- |
- |
(16) |
(35) |
- |
(1,363) |
- |
(63,874) | ||||||||||||||
Parcel "A" |
(44,439) |
- |
98 |
- |
8,843 |
- |
2,178 |
- |
(17) |
- |
- |
- |
(2) |
- |
(33,339) | ||||||||||||||
Tariff review |
(49,315) |
- |
25,930 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(23,385) | ||||||||||||||
Discounts TUSD and Irrigation |
13,555 |
8,267 |
(3,109) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
344 |
- |
19,057 | ||||||||||||||
CVA |
(139,802) |
- |
- |
20,138 |
(15,007) |
5,793 |
(21,044) |
- |
- |
- |
- |
3,443 |
(2,091) |
2,536 |
(146,034) | ||||||||||||||
Increase in PIS and COFINS |
(125,870) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(3,503) |
129,373 |
- | ||||||||||||||
Overcontracting |
24,633 |
- |
- |
(10,411) |
(5,389) |
- |
- |
- |
- |
- |
34 |
- |
22 |
(2,536) |
6,353 | ||||||||||||||
Low Income Consumers Subsidy |
51,559 |
9,610 |
(3,347) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
66 |
- |
57,888 | ||||||||||||||
Neutrality of sector charges |
(7,425) |
(19,351) |
633 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(416) |
- |
(26,559) | ||||||||||||||
Tariff adjustment |
(14,530) |
28,367 |
1,005 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
4,836 |
- |
19,678 | ||||||||||||||
Other financial components |
18,306 |
27,390 |
(6,461) |
(16,802) |
(1,461) |
1,960 |
(1,061) |
- |
249 |
684 |
(336) |
- |
1,500 |
(111) |
23,857 | ||||||||||||||
Total net |
(335,788) |
54,283 |
14,749 |
(7,075) |
(13,014) |
7,753 |
(19,927) |
- |
232 |
668 |
(337) |
3,443 |
(607) |
129,262 |
(166,358) |
2009 |
||||||||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||||
March 31, 2009 |
Operating reveue |
Cost of electric energy services |
Deductions from operating revenue |
Operating expense |
Cash |
Financial income (expense) |
June 30, 2009 | |||||||||||||||||||||
Deferral |
|
Amort. |
Deferral |
|
Amort. |
Deferral |
|
Amort. |
Deferral |
|
Amort. |
|
Provision for losses |
Amort. |
Deferral |
|
Remuner. |
|||||||||||
Free energy |
(28,704) |
- |
- |
- |
- |
- |
- |
- |
- |
15 |
(37) |
- |
(6) |
(28,732) | ||||||||||||||
Parcel "A" |
167,563 |
- |
790 |
- |
(56,521) |
- |
(13,771) |
- |
130 |
- |
- |
- |
4,593 |
102,784 | ||||||||||||||
Tariff review |
(67,222) |
(2,510) |
15,213 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(54,519) | ||||||||||||||
Discounts TUSD and Irrigation |
24,602 |
(2,614) |
(6,749) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(17) |
15,222 | ||||||||||||||
CVA |
498,992 |
- |
- |
(79,364) |
(62,789) |
(24,392) |
(18,267) |
- |
- |
- |
- |
(25,515) |
7,239 |
295,904 | ||||||||||||||
Increase in PIS and COFINS |
(123,503) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
387 |
(123,116) | ||||||||||||||
Overcontracting |
35,876 |
- |
- |
51,055 |
(3,403) |
- |
- |
- |
- |
- |
- |
- |
235 |
83,763 | ||||||||||||||
Low Income Consumers Subsidy |
70,229 |
11,552 |
(8,617) |
- |
- |
- |
- |
- |
- |
- |
(8,405) |
- |
(18) |
64,741 | ||||||||||||||
Other financial components |
(22,331) |
30,411 |
(28,806) |
- |
1,579 |
5,490 |
(4,646) |
- |
229 |
- |
116 |
- |
(65) |
(18,023) | ||||||||||||||
Total net |
555,502 |
36,839 |
(28,169) |
(28,309) |
(121,134) |
(18,902) |
(36,684) |
- |
359 |
15 |
(8,326) |
(25,515) |
12,348 |
338,024 |
29
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 4 ) CASH AND CASH EQUIVALENTS
Parent Company |
Consolidated | |||||||
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | |||||
Bank deposits |
625 |
1,235 |
156,666 |
38,683 | ||||
Short-term financial investments |
70,347 |
216,723 |
1,218,433 |
1,646,019 | ||||
|
| |||||||
Total |
70,972 |
217,958 |
1,375,099 |
1,684,702 |
The short-term financial investments refer to short term operations with national financial institutions under normal market conditions and rates, with daily liquidity, low credit risk and average interest of 100% of the Interbank Deposit rate (CDI).
( 5 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES
In the consolidated financial statements, the balance derives mainly from the supply of electric energy. The following table shows the breakdown as of June 30 and March 31, 2010:
Consolidated | ||||||||||
Past due |
Total | |||||||||
Balances Coming due |
Up to 90 days |
More than 90 days |
June 30, 2010 |
March 31, 2010 | ||||||
Current |
||||||||||
Consumer Classes |
||||||||||
Residential |
279,081 |
193,683 |
20,645 |
493,409 |
531,711 | |||||
Industrial |
206,831 |
65,865 |
43,782 |
316,478 |
263,479 | |||||
Commercial |
105,661 |
43,211 |
20,697 |
169,569 |
192,283 | |||||
Rural |
28,937 |
6,729 |
1,532 |
37,198 |
39,334 | |||||
Public Administration |
29,589 |
5,298 |
1,137 |
36,024 |
33,909 | |||||
Public Lighting |
24,305 |
2,646 |
17,006 |
43,957 |
35,439 | |||||
Public Service |
37,008 |
6,292 |
1,012 |
44,312 |
34,974 | |||||
Billed |
711,412 |
323,724 |
105,811 |
1,140,947 |
1,131,129 | |||||
Unbilled |
434,572 |
- |
- |
434,572 |
476,447 | |||||
Financing of Consumers' Debts |
60,975 |
13,170 |
33,228 |
107,373 |
94,475 | |||||
Regulatory assets (note 3) |
19,126 |
- |
- |
19,126 |
15,584 | |||||
CCEE Transactions |
21,073 |
- |
- |
21,073 |
12,819 | |||||
Concessionaires and Licensees |
164,705 |
- |
- |
164,705 |
158,258 | |||||
Collection in process of classification |
7,985 |
- |
- |
7,985 |
(27,193) | |||||
Other |
18,525 |
3,169 |
674 |
22,368 |
20,975 | |||||
Total |
1,438,373 |
340,063 |
139,713 |
1,918,149 |
1,882,494 | |||||
Noncurrent |
||||||||||
Financing of Consumers' Debts |
130,014 |
- |
- |
130,014 |
137,986 | |||||
Regulatory assets (note 3) |
6,658 |
- |
- |
6,658 |
4,861 | |||||
CCEE Transactions |
41,301 |
- |
- |
41,301 |
41,301 | |||||
Concessionaires and Licensees |
21,327 |
- |
- |
21,327 |
31,991 | |||||
Total |
199,300 |
- |
- |
199,300 |
216,139 |
30
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Collection in process of Classification - The credit balance of R$ 27,193 at March 31, 2010 refers to amounts received where the accounts receivable had not been written off due to the implementation of the new billing system CCS.
( 6 ) FINANCIAL INVESTMENTS
In 2005, through a Private Credit Agreement, the Company acquired the credit arising from the Purchase and Sale of Electric Energy Agreement between Companhia Energética de São Paulo (CESP) (seller) and CPFL Brasil (purchaser), referring to the supply of energy for a period of 8 years. The amounts handed over by the Company to CESP will be settled by CPFL Brasil using the funds derived from the acquisition of energy produced by that company.
As of June 30, 2010, the current assets balance of the parent company is R$ 40,209 (R$ 39,615 as of March 31, 2010), and the noncurrent assets balance is R$ 51,675 (R$ 57,338 as of March 31, 2010). The operation is subject to interest of 17.5% p.a., plus the annual variation of the IGP-M, and is amortized in monthly installments of amounts corresponding to the purchase of energy.
( 7 ) RECOVERABLE TAXES
Parent Company |
Consolidated | |||||||
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | |||||
Current |
||||||||
Social Contribution Prepayments - CSLL |
- |
- |
365 |
336 | ||||
Income Tax Prepayments - IRPJ |
- |
- |
1,176 |
545 | ||||
Social Contribution and Income Tax |
44,245 |
42,983 |
83,901 |
82,239 | ||||
Withholding Income Tax- IRRF |
16,978 |
1,737 |
47,391 |
25,237 | ||||
ICMS (State VAT) |
- |
- |
64,071 |
41,247 | ||||
PIS (Tax on Revenue) |
- |
- |
4,208 |
4,025 | ||||
COFINS (Tax on Revenue) |
42 |
42 |
13,168 |
12,338 | ||||
INSS (Social Security) |
- |
1 |
882 |
1,144 | ||||
Other |
- |
- |
8,890 |
7,295 | ||||
Total |
61,265 |
44,763 |
224,052 |
174,406 | ||||
Noncurrent |
||||||||
Social Contribution Tax - CSLL |
- |
- |
31,543 |
30,854 | ||||
Income Tax - IRPJ |
- |
- |
1,001 |
1,001 | ||||
PIS (Tax on Revenue) |
2,787 |
2,787 |
2,787 |
2,787 | ||||
ICMS (State VAT) |
- |
- |
78,424 |
68,814 | ||||
Other |
- |
- |
6,180 |
5,828 | ||||
Total |
2,787 |
2,787 |
119,935 |
109,284 |
( 8 ) ALLOWANCE FOR DOUBTFUL ACCOUNTS
31
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | |
Balance at March 31, 2010 |
(80,700) |
Additional Allowance Recorded |
(32,113) |
Recovery of Revenue |
13,805 |
Write-off of Accounts Receivable |
13,098 |
Balance at June 30, 2010 |
(85,910) |
( 9 ) PREPAID EXPENSES
|
|
Consolidated | ||||||
|
|
Current |
|
Noncurrent | ||||
|
|
June 30, 2010 |
|
March 31, 2010 |
|
June 30, 2010 |
|
March 31, 2010 |
Regulatory assets - (note 3) |
|
164,566 |
|
119,939 |
|
43,575 |
|
44,729 |
Other |
|
29,708 |
|
25,414 |
|
4,745 |
|
5,713 |
Total |
|
194,274 |
|
145,353 |
|
48,320 |
|
50,442 |
( 10 ) DEFERRED TAXES
10.1- Composition of the tax credits:
32
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Parent Company |
Consolidated | |||||||
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | |||||
Social Contribution Credit on |
||||||||
Tax Loss Carryforwards |
40,179 |
42,048 |
47,525 |
50,240 | ||||
Tax Benefit on Merged Goodwill |
- |
- |
182,003 |
186,485 | ||||
Temporarily Nondeductible Differences |
69 |
112 |
66,947 |
71,193 | ||||
Subtotal |
40,248 |
42,160 |
296,475 |
307,918 | ||||
Income Tax Credit on |
||||||||
Tax Loss Carryforwards |
122,357 |
128,552 |
126,152 |
132,347 | ||||
Tax Benefit of Merged Goodwill |
- |
- |
612,501 |
627,265 | ||||
Temporarily Nondeductible Differences |
2,739 |
2,808 |
185,961 |
197,691 | ||||
Subtotal |
125,096 |
131,360 |
924,614 |
957,303 | ||||
PIS e COFINS credit on |
||||||||
Temporarily Nondeductible Differences |
- |
- |
1,905 |
1,626 | ||||
Total |
165,344 |
173,520 |
1,222,994 |
1,266,847 | ||||
Current |
16,320 |
16,320 |
163,501 |
163,148 | ||||
Noncurrent |
149,024 |
157,200 |
1,059,493 |
1,103,699 | ||||
Total |
165,344 |
173,520 |
1,222,994 |
1,266,847 | ||||
The estimates of recovery of deferred tax credits recorded in noncurrent assets, derived from tax losses, negative bases, temporary non-deductible differences and tax benefit of merged goodwill, are based on projections of future income, approved by the Board of Directors and examined by the Fiscal Council.
10.2 - Tax Benefit on Merged Goodwill:
The tax benefit on merged goodwill refers to the tax credit calculated on the merged goodwill on acquisition of permanent interests and is recorded in accordance with CVM Instructions nº 319/99 and nº 349/01. The benefit is realized in proportion to amortization of the merged goodwill, in accordance with the projected net income of the subsidiaries during the remaining term of the concession, as shown in Note 14.
33
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||
June 30, 2010 |
March 31, 2010 | |||||||
Social Contribution Tax |
Income Tax (IRPJ) |
Social Contribution Tax |
Income Tax (IRPJ) | |||||
CPFL Paulista |
99,159 |
275,444 |
101,447 |
281,798 | ||||
CPFL Piratininga |
22,240 |
76,318 |
22,724 |
77,973 | ||||
RGE |
42,748 |
176,537 |
43,563 |
179,903 | ||||
CPFL Santa Cruz |
5,053 |
16,848 |
5,342 |
17,756 | ||||
CPFL Leste Paulista |
3,152 |
8,680 |
3,301 |
9,133 | ||||
CPFL Sul Paulista |
4,604 |
12,655 |
4,813 |
13,299 | ||||
CPFL Jaguari |
2,764 |
7,616 |
2,896 |
8,013 | ||||
CPFL Mococa |
1,798 |
4,940 |
1,884 |
5,208 | ||||
CPFL Geração |
- |
32,128 |
- |
32,753 | ||||
CPFL Serviços |
485 |
1,335 |
515 |
1,429 | ||||
Total |
182,003 |
612,501 |
186,485 |
627,265 |
10.3 Accumulated balances on temporary nondeductible differences:
Consolidated | ||||||||||||
June 30, 2010 |
March 31, 2010 | |||||||||||
Social Contribution Tax |
Income Tax (IRPJ) |
PIS/COFINS |
Social Contribution Tax |
Income Tax (IRPJ) |
PIS/COFINS | |||||||
Reserve for Contingencies |
19,252 |
53,651 |
- |
11,762 |
32,791 |
- | ||||||
Pension Plan Expenses |
3,555 |
10,875 |
- |
3,823 |
11,619 |
- | ||||||
Allowance for Doubtful Accounts |
7,302 |
20,291 |
- |
6,837 |
18,993 |
- | ||||||
Free energy adjustment (note 3a.1) |
3,492 |
9,698 |
- |
3,351 |
9,307 |
- | ||||||
Research and Development and Energy Efficiency Programs |
16,344 |
45,393 |
- |
16,759 |
46,546 |
- | ||||||
Profit Sharing |
1,700 |
5,415 |
- |
2,666 |
8,153 |
- | ||||||
Differences in Depreciation Rates - RGE |
9,551 |
26,530 |
- |
9,679 |
26,886 |
- | ||||||
Regulatory liability - Increase in PIS and COFINS |
- |
- |
- |
11,122 |
30,892 |
- | ||||||
Provision for overcontracting |
933 |
2,593 |
878 |
933 |
2,593 |
878 | ||||||
Effects of Law nº 11,638/07 |
608 |
1,690 |
739 |
754 |
2,095 |
596 | ||||||
Other |
4,210 |
9,825 |
288 |
3,507 |
7,816 |
152 | ||||||
Total |
66,947 |
185,961 |
1,905 |
71,193 |
197,691 |
1,626 |
34
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
10.4 - Reconciliation of the amounts of income tax and social contribution reported in the quarters and half-years ended June 30, 2010 and 2009:
Parent Company | ||||||||||||||||
2nd quarter 2010 |
1st quarter 2010 |
2nd quarter 2009 |
1st quarter 2009 | |||||||||||||
Social Contribution Tax |
Income Tax(IRPJ) |
Social Contribution Tax |
Income Tax(IRPJ) |
Social Contribution Tax (CSLL) |
Income Tax(IRPJ) |
Social Contribution Tax |
Income Tax (IRPJ) | |||||||||
Income before taxes |
509,881 |
509,881 |
899,948 |
899,948 |
414,908 |
414,908 |
697,444 |
697,444 | ||||||||
Adjustments to Reflect Effective Rate: |
||||||||||||||||
- Equity on subsidiaries |
(460,208) |
(460,208) |
(888,963) |
(888,963) |
(369,457) |
(369,457) |
(700,601) |
(700,601) | ||||||||
- Intangible asset (goodwill) amortization |
28,946 |
36,878 |
57,891 |
72,240 |
30,330 |
37,186 |
60,660 |
74,374 | ||||||||
- Other Permanent Additions, net |
158 |
(1,296) |
578 |
(828) |
1,492 |
1,482 |
1,947 |
1,969 | ||||||||
Calculation base |
78,777 |
85,255 |
69,454 |
82,397 |
77,273 |
84,119 |
59,450 |
73,186 | ||||||||
Statutory Tax Rate |
9% |
25% |
9% |
25% |
9% |
25% |
9% |
25% | ||||||||
Tax Credit Result |
(7,090) |
(21,314) |
(6,251) |
(20,599) |
(6,955) |
(21,030) |
(5,351) |
(18,297) | ||||||||
- Tax Credit Recorded (Not Recorded) |
816 |
606 |
- |
- |
1,674 |
2,505 |
- |
9 | ||||||||
Total |
(6,274) |
(20,708) |
(6,251) |
(20,599) |
(5,281) |
(18,525) |
(5,351) |
(18,288) | ||||||||
Consolidated | ||||||||||||||||
2nd quarter 2010 |
1st quarter 2010 |
2nd quarter 2009 |
1st quarter 2009 | |||||||||||||
Social Contribution Tax |
Income Tax |
Social Contribution Tax |
Income Tax |
Social Contribution Tax |
Income Tax |
Social Contribution Tax |
Income Tax (IRPJ) | |||||||||
Income before taxes |
600,704 |
600,704 |
1,215,996 |
1,215,996 |
455,058 |
455,058 |
908,776 |
908,776 | ||||||||
Adjustments to Reflect Effective Rate: |
||||||||||||||||
- Intangible asset (goodwill) amortization |
28,946 |
37,281 |
57,891 |
72,686 |
30,330 |
37,585 |
60,660 |
75,171 | ||||||||
- CMC Realization |
2,951 |
- |
6,141 |
- |
3,536 |
- |
7,079 |
- | ||||||||
- Effect of Presumed Profit System |
(1,932) |
(2,637) |
(8,822) |
(10,616) |
(10,543) |
(12,342) |
(19,815) |
(22,369) | ||||||||
- Other Permanent Additions (Exclusions), net |
(2,415) |
(15,756) |
(620) |
(18,456) |
6,518 |
4,078 |
10,053 |
7,288 | ||||||||
Calculation base |
628,254 |
619,592 |
1,270,586 |
1,259,610 |
484,899 |
484,379 |
966,753 |
968,866 | ||||||||
Statutory Tax Rate |
9% |
25% |
9% |
25% |
9% |
25% |
9% |
25% | ||||||||
Tax Debit Result |
(56,543) |
(154,898) |
(114,353) |
(314,903) |
(43,641) |
(121,095) |
(87,008) |
(242,217) | ||||||||
- Tax Credit Recorded (Not Recorded) |
(245) |
(2,365) |
(1,974) |
(5,495) |
756 |
180 |
(1,052) |
(2,452) | ||||||||
Total |
(56,788) |
(157,263) |
(116,327) |
(320,398) |
(42,885) |
(120,915) |
(88,060) |
(244,669) |
( 11 ) OTHER CREDITS
|
|
Consolidated | ||||||
|
|
Current |
|
Noncurrent | ||||
|
|
June 30, 2010 |
|
March 31, 2010 |
|
June 30, 2010 |
|
March 31, 2010 |
Receivables from BAESA's shareholders |
|
16,251 |
|
15,777 |
|
7,908 |
|
11,832 |
Advances - Fundação CESP |
|
7,432 |
|
6,344 |
|
- |
|
- |
Advance to suppliers |
|
16,091 |
|
9,642 |
|
- |
|
- |
Pledges, Funds and Tied Deposits |
|
3,318 |
|
2,868 |
|
38,300 |
|
42,715 |
Fund Tied to Foreign Currency Loans |
|
- |
|
- |
|
22,945 |
|
19,621 |
Orders in Progress |
|
7,737 |
|
10,185 |
|
- |
|
- |
Services Rendered to Third Parties |
|
57,893 |
|
46,931 |
|
- |
|
- |
Reimbursement RGR |
|
4,830 |
|
4,817 |
|
1,611 |
|
1,611 |
Advance Energy Purchase Agreements |
|
10,209 |
|
15,111 |
|
63,399 |
|
55,742 |
Lease |
|
3,253 |
|
3,189 |
|
22,817 |
|
22,688 |
Collection Agreements |
|
25,979 |
|
4,561 |
|
- |
|
- |
Other |
|
35,022 |
|
35,599 |
|
9,317 |
|
8,831 |
Total |
|
188,015 |
|
155,024 |
|
166,297 |
|
163,040 |
Collection Agreements Refer to agreements entered into with local government authorities and companies to collect taxes and charges by means of the electricity bill and to later pass on the amounts collected relating to the public lighting contribution, newspapers, healthcare, home insurance, etc.. As from 2010, with the implementation of the new billing system CCS, the subsidiaries changed how these are recorded (previously recorded based on the charges collected and now recorded based on billing), affecting both the records of accounts receivable and accounts payable (Note 22).
35
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 12 ) INVESTMENTS
Parent Company |
Consolidated | |||||||
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | |||||
Permanent Equity Interests: |
||||||||
At equity method |
3,319,493 |
3,678,260 |
- |
- | ||||
At cost method |
- |
- |
117,744 |
117,686 | ||||
Negative goodwill |
(12,828) |
(12,828) |
(12,828) |
(12,828) | ||||
Goodwill |
1,469,373 |
1,473,401 |
- |
- | ||||
Total |
4,776,038 |
5,138,833 |
104,916 |
104,858 |
12.1 - Permanent Equity Interests:
The main information on the investments in direct permanent equity interests is as follows:
June 30, 2010 |
June 30, 2010 |
March 31, 2010 |
2nd quarter 2010 |
2nd quarter 2009 | ||||||||||||
Investment |
Number of (thousand) Shares held |
Capital |
Shareholders Equity |
Net Income |
Shareholders Equity Interest |
Equity in Subsidiaries | ||||||||||
CPFL Paulista |
72,650 |
109,810 |
497,388 |
327,229 |
497,388 |
644,294 |
180,323 |
102,343 | ||||||||
CPFL Piratininga |
53,031,259 |
70,587 |
230,538 |
148,050 |
230,538 |
318,556 |
60,032 |
73,900 | ||||||||
RGE |
807,168 |
867,604 |
1,108,154 |
131,418 |
1,108,154 |
1,156,910 |
80,119 |
33,796 | ||||||||
CPFL Santa Cruz |
371,772 |
45,330 |
80,135 |
12,589 |
80,135 |
85,783 |
6,936 |
4,809 | ||||||||
CPFL Leste Paulista |
895,373 |
12,217 |
40,252 |
6,908 |
40,252 |
41,539 |
4,630 |
3,271 | ||||||||
CPFL Jaguari |
211,844 |
5,716 |
31,045 |
6,098 |
31,045 |
31,759 |
3,197 |
1,183 | ||||||||
CPFL Sul Paulista |
445,317 |
10,000 |
44,333 |
7,638 |
44,333 |
42,664 |
4,444 |
3,288 | ||||||||
CPFL Mococa |
116,989 |
9,850 |
29,936 |
5,072 |
29,936 |
28,015 |
3,248 |
1,883 | ||||||||
CPFL Geração |
205,487,716 |
1,039,618 |
1,209,765 |
134,256 |
1,209,765 |
1,220,333 |
70,917 |
95,307 | ||||||||
CPFL Brasil |
2,999 |
2,999 |
3,598 |
103,475 |
3,598 |
65,705 |
41,368 |
54,411 | ||||||||
CPFL Atende (*) |
1 |
1 |
(1,892) |
(633) |
(1,892) |
(1,286) |
(606) |
(653) | ||||||||
CPFL Planalto (*) |
630 |
630 |
630 |
5,394 |
630 |
3,208 |
2,815 |
1,627 | ||||||||
CPFL Serviços |
1,443,141 |
5,800 |
2,107 |
(355) |
2,107 |
1,177 |
898 |
(7,665) | ||||||||
CPFL Jaguariuna |
189,620 |
2,481 |
2,068 |
(112) |
2,068 |
2,122 |
(54) |
(61) | ||||||||
CPFL Jaguari Geração |
40,072 |
40,108 |
41,436 |
3,556 |
41,436 |
37,481 |
1,941 |
2,018 | ||||||||
Total |
3,319,493 |
3,678,260 |
460,208 |
369,457 | ||||||||||||
(*) Number of quotes |
||||||||||||||||
The capital and shareholders' equity of the subsidiary Chumpitaz is R$ 100.00 (one hundred reais) | ||||||||||||||||
At June 30, 2010 the parent company held 100% interest in the total capital of all of these subsidiaries |
a) Migration of noncontrolling shareholders in CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz to the equity of CPFL Energia
The EGM/AGM of CPFL Energia held on April 26, 2010, approved the merger of all the shares held by the noncontrolling shareholders of the subsidiaries CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz with the equity of CPFL Energia and conversion of these companies into wholly-owned subsidiaries. This was carried out with the issue of 1,226,192 new common shares of CPFL Energia, resulting in an increase in Shareholders Equity of R$ 52,249, offset by R$ 17,393 relating to the increase of the holdings in these subsidiaries, and R$ 34,856 regarding the increase in intangible assets relating to concession rights (R$ 32,848) and goodwill (R$2,008). The exchange ratios were established based on economic reports.
36
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: March 31, 2010
12.2 Interest on Shareholders Equity and Dividends Receivable:
Parent Company | ||||||||||||
Dividend |
Interest on Shareholders Equity |
Total | ||||||||||
Subsidiaries |
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | ||||||
CPFL Paulista |
462,308 |
255,308 |
12,683 |
12,683 |
474,991 |
267,991 | ||||||
CPFL Piratininga |
191,134 |
169,938 |
5,879 |
12,002 |
197,013 |
181,940 | ||||||
RGE |
173,962 |
91,391 |
30,044 |
30,045 |
204,006 |
121,436 | ||||||
CPFL Santa Cruz |
23,687 |
17,332 |
2,043 |
2,044 |
25,730 |
19,376 | ||||||
CPFL Geração |
146,775 |
121,936 |
29,503 |
29,072 |
176,278 |
151,008 | ||||||
CPFL Brasil |
103,367 |
109,466 |
92 |
- |
103,459 |
109,466 | ||||||
CPFL Leste Paulista |
10,701 |
11,528 |
1,025 |
2,361 |
11,726 |
13,889 | ||||||
CPFL Sul Paulista |
6,378 |
10,551 |
1,071 |
1,965 |
7,449 |
12,516 | ||||||
CPFL Jaguari |
5,168 |
5,069 |
790 |
694 |
5,958 |
5,763 | ||||||
CPFL Mococa |
9,252 |
5,047 |
1,376 |
639 |
10,628 |
5,686 | ||||||
CPFL Serviços |
3,648 |
3,648 |
- |
- |
3,648 |
3,648 | ||||||
CPFL Planalto |
5,394 |
4,152 |
- |
- |
5,394 |
4,152 | ||||||
CPFL Jaguari Geração |
4,153 |
5,011 |
- |
- |
4,153 |
5,011 | ||||||
Total |
1,145,927 |
810,377 |
84,506 |
91,505 |
1,230,433 |
901,882 |
In the second quarter of 2010, the Company received R$ 493,015 in relation to dividends and interest on shareholders equity declared in 2009. In this quarter, the subsidiaries declared (i) R$ 737,698 as interim dividends, and (ii) R$98,669 (R$ 83,868 net of income tax retained at source) as interim interest on shareholders equity, both relating to earnings in the first 6 months of 2010.
12.3 Investment at cost
Refers mainly to the participation of the indirect subsidiary Paulista Lajeado Energia S.A. of 5.94% in the total capital of Investco S/A, comprising 28,154 common shares and 18,529 preferred shares. This investment is recorded on a cost basis. Due to the participation of minority shareholders in the form of (i) preferred shares representing 39.69% of the total capital of Paulista Lajeado, and (ii) beneficiaries (founder-shares) which assign the right to 10% of net income before profit sharing, these effects, totaling R$ 75,425, were registered in the liabilities of the consolidated financial statements under Noncontrolling Shareholders Interest.
12.4 Goodwill
The goodwill refers mainly to the acquisition of investments (right to operate the concessions). In the quarterly consolidated financial statements, these amounts are shown under Intangible Assets, as described in Note 14.
37
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 13 ) PROPERTY, PLANT AND EQUIPMENT
Consolidated | ||||||||
June 30, 2010 |
March 31, 2010 | |||||||
Historical Cost |
Accumulated Depreciation |
Net Value |
Net Value | |||||
In Service |
||||||||
- Distribution |
8,698,726 |
(4,455,554) |
4,243,172 |
4,151,900 | ||||
- Generation |
2,162,232 |
(275,140) |
1,887,092 |
1,899,105 | ||||
- Commercialization |
163,362 |
(79,460) |
83,903 |
85,590 | ||||
- Administration |
147,216 |
(92,542) |
54,674 |
55,304 | ||||
- Leased assets |
943,351 |
(275,595) |
667,756 |
673,493 | ||||
12,114,887 |
(5,178,291) |
6,936,597 |
6,865,392 | |||||
In Progress |
||||||||
- Distribution |
455,522 |
- |
455,522 |
380,842 | ||||
- Generation |
1,620,110 |
- |
1,620,110 |
1,436,036 | ||||
- Commercialization |
33,710 |
- |
33,710 |
13,623 | ||||
- Administration |
46,369 |
- |
46,369 |
39,161 | ||||
2,155,711 |
- |
2,155,711 |
1,869,662 | |||||
Subtotal |
14,270,598 |
(5,178,291) |
9,092,308 |
8,735,054 | ||||
Special obligations linked to the concession |
(1,079,953) |
(1,063,805) | ||||||
Total |
8,012,355 |
7,671,249 |
The average depreciation rate of the assets is 4.8% p.a. for the distributors and 2.6% p.a. for the generators.
The balance of construction in progress in the generation segment mainly refers to work in progress on the projects of the operating subsidiaries and/or those under development, particularly the Foz do Chapecó and EPASA generation projects, with total property, plant and equipment of R$ 401,036 and R$ 457,050, respectively (R$ 1,224,529 and R$ 233,096, in proportion to the Companys participation).
( 14 ) INTANGIBLE ASSETS
Parent Company |
Consolidated | |||||||
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | |||||
Intangible concession asset |
- |
- |
2,124,918 |
2,138,273 | ||||
Other intangible assets |
6,380 |
4,410 |
404,692 |
387,028 | ||||
Total |
6,380 |
4,410 |
2,529,610 |
2,525,301 |
14.1 Breakdown of the Intangible Concession Asset
38
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||||
June 30, 2010 |
March 31, 2010 |
Annual amortization rate (*) | ||||||||
Historical Cost |
Accumulated Amortization |
Net Value |
Net Value |
June 30, 2010 | ||||||
INTANGIBLE CONCESSION ASSET |
||||||||||
Intangible asset acquired, not merged |
||||||||||
Parent Company |
||||||||||
CPFL Paulista |
304,861 |
(90,869) |
213,992 |
218,965 |
5.93% | |||||
CPFL Piratininga |
39,065 |
(11,253) |
27,812 |
28,416 |
6.19% | |||||
CPFL Geração |
54,555 |
(16,239) |
38,316 |
39,107 |
5.83% | |||||
RGE |
3,150 |
(488) |
2,662 |
2,714 |
6.53% | |||||
CPFL Santa Cruz |
9 |
- |
9 |
- |
19.75% | |||||
CPFL Leste Paulista |
3,333 |
(158) |
3,175 |
- |
18.83% | |||||
CPFL Sul Paulista |
7,288 |
(433) |
6,855 |
- |
18.03% | |||||
CPFL Jaguari |
5,212 |
(495) |
4,717 |
- |
19.13% | |||||
CPFL Mococa |
9,110 |
(252) |
8,858 |
- |
19.52% | |||||
CPFL Jaguari Geração |
7,896 |
(173) |
7,723 |
- |
8.74% | |||||
434,479 |
(120,360) |
314,119 |
289,202 |
|||||||
Subsidiaries |
||||||||||
CPFL Jaguariúna |
- |
- |
- |
- |
- | |||||
ENERCAN |
10,233 |
(1,961) |
8,272 |
8,449 |
6.93% | |||||
Barra Grande |
3,081 |
(920) |
2,161 |
2,206 |
5.92% | |||||
Chapecoense |
7,376 |
- |
7,376 |
7,376 |
- | |||||
EPASA |
498 |
- |
498 |
498 |
- | |||||
Santa Clara I |
4,571 |
- |
4,571 |
4,571 |
- | |||||
Santa Clara II |
4,571 |
- |
4,571 |
4,571 |
- | |||||
Santa Clara III |
4,571 |
- |
4,571 |
4,571 |
- | |||||
Santa Clara IV |
4,571 |
- |
4,571 |
4,571 |
- | |||||
Santa Clara V |
4,571 |
- |
4,571 |
4,571 |
- | |||||
Santa Clara VI |
4,571 |
- |
4,571 |
4,571 |
- | |||||
Eurus VI |
1,147 |
- |
1,147 |
1,147 |
- | |||||
Other |
14,488 |
(10,870) |
3,618 |
3,800 |
6.22% | |||||
64,249 |
(13,751) |
50,498 |
50,902 |
|||||||
Subtotal |
498,728 |
(134,111) |
364,617 |
340,104 |
||||||
Intangible asset acquired and merged Deductible |
||||||||||
Subsidiaries |
||||||||||
RGE |
1,120,266 |
(730,078) |
390,188 |
394,927 |
3.76% | |||||
CPFL Geração |
426,450 |
(211,591) |
214,859 |
219,042 |
6.22% | |||||
Subtotal |
1,546,716 |
(941,669) |
605,047 |
613,969 |
||||||
Intangible asset acquired and merged Reassessed |
||||||||||
Parent Company |
||||||||||
CPFL Paulista |
1,074,026 |
(383,671) |
690,355 |
706,282 |
5.93% | |||||
CPFL Piratininga |
115,762 |
(33,347) |
82,415 |
84,205 |
6.19% | |||||
RGE |
310,128 |
(57,060) |
253,068 |
257,953 |
6.33% | |||||
CPFL Santa Cruz |
61,685 |
(24,875) |
36,810 |
38,827 |
13.07% | |||||
CPFL Leste Paulista |
27,034 |
(6,434) |
20,600 |
21,646 |
15.48% | |||||
CPFL Sul Paulista |
38,168 |
(8,967) |
29,201 |
30,646 |
15.14% | |||||
CPFL Jaguari |
23,600 |
(5,441) |
18,159 |
19,089 |
15.76% | |||||
CPFL Mococa |
15,124 |
(3,743) |
11,381 |
11,984 |
15.96% | |||||
CPFL Jaguari Geração |
15,275 |
(2,010) |
13,265 |
13,568 |
7.94% | |||||
1,680,802 |
(525,548) |
1,155,254 |
1,184,200 |
|||||||
Total |
3,726,246 |
(1,601,328) |
2,124,918 |
2,138,273 |
||||||
(*) Relates to the proportionate rate for the amortized period |
39
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
· Intangible assets Concession
The differences between the amount paid and the equity of acquired companies on the acquisition dates. Correspond to the parent companys future benefit of the right to exploit the concession and are classified as intangible assets with a fixed useful life, amortized in proportion to the concessionaires projected net income curves for the remaining term of the concession contract. The intangible concession assets are as follows:
- Intangible assets acquired, not merged
In the parent company, refer mainly to (i) the remaining goodwill on the acquisition of shares held by the noncontrolling shareholders of CPFL Geração in June 2005, CPFL Paulista and CPFL Piratininga in November 2005 and RGE in December 2007 and to (ii) the goodwill of R$ 32,848 generated on the merger in this quarter of all the shares held by the minority shareholders of the subsidiaries CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz (note 12).
- Intangible assets acquired and merged Deductible
Relates to the goodwill on the acquisition of the subsidiaries that was merged with the respective net equities, without application of CVM Instructions nº 319/99 and nº 349/01, that is, without segregation of the amount corresponding to the tax benefit.
- Intangible asset acquired and merged Reassessed
In order to comply with ANEEL instructions and avoid the goodwill amortization resulting from the merger of a parent company causing a negative impact on dividends paid to the shareholders, the subsidiaries applied the concepts of CVM Instructions nº 319/99 and nº 349/01 on the acquisition goodwill. A reserve was therefore recorded to adjust the goodwill, set against the equity reserves of the subsidiaries, so that the effect on the equity reflects the tax benefit of the merged goodwill. These changes affected the Company's investment in the subsidiaries, and in order to adjust this, non-deductible goodwill was recorded for tax purposes.
14.2 - Other Intangible assets
The Other Intangible Assets balance comprises mainly software with a defined useful life, amortized at 20% p.a., and easement rights, with an indefinite useful life, recovery of which is analysed in accordance with CPC 01 Impairment of Assets.
The changes in the balance of corporate interests in the quarter ended June 30, 2010 are as follows:
40
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||||
March 31, 2010 |
Addition |
Disposal |
Amortization |
June 30, 2010 | ||||||
Intangible asset acquired, not merged |
||||||||||
Historical cost |
465,880 |
32,848 |
- |
- |
498,728 | |||||
Accumulated Amortization |
(125,776) |
- |
- |
(8,335) |
(134,111) | |||||
340,104 |
32,848 |
- |
(8,335) |
364,617 | ||||||
Intangible asset acquired and merged Deductible |
||||||||||
Historical cost |
1,546,716 |
- |
- |
- |
1,546,716 | |||||
Accumulated Amortization |
(932,747) |
- |
- |
(8,922) |
(941,669) | |||||
613,969 |
- |
- |
(8,922) |
605,047 | ||||||
Intangible asset acquired and merged Reassessed |
||||||||||
Historical cost |
1,680,802 |
- |
- |
- |
1,680,802 | |||||
Accumulated Amortization |
(496,602) |
- |
- |
(28,946) |
(525,548) | |||||
1,184,200 |
- |
- |
(28,946) |
1,155,254 | ||||||
Subtotal |
2,138,273 |
32,848 |
- |
(46,203) |
2,124,918 | |||||
Other intangible assets |
387,028 |
24,773 |
(57) |
(7,052) |
404,692 | |||||
Total |
2,525,301 |
57,621 |
(57) |
(53,255) |
2,529,610 |
14.3 - Concession Agreements
On signing their respective Concession Agreements, the jointly-controlled subsidiaries CERAN, ENERCAN, BAESA and Foz do Chapecó and the indirect subsidiary Paulista Lajeado assumed obligations to the Federal Government in relation to the granting of the concession, as Public Utilities. The liabilities are restated annually by the variation in the General Market Price Index IGP-M.
The subsidiaries record the grant amounts in expense, according to the contractual maturity dates.
41
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 15 ) INTEREST, LOANS AND FINANCING
Consolidated | |||||||||||||||
June 30, 2010 |
March 31, 2010 | ||||||||||||||
Interest |
Principal |
Total |
Interest |
Principal |
Total | ||||||||||
Current |
Noncurrent |
Current |
Noncurrent |
||||||||||||
At cost |
|||||||||||||||
LOCAL CURRENCY |
|||||||||||||||
BNDES - Power Increases |
64 |
6,515 |
10,381 |
16,960 |
76 |
6,814 |
11,959 |
18,849 | |||||||
BNDES - Investment |
10,035 |
304,767 |
2,295,489 |
2,610,291 |
10,488 |
325,095 |
2,322,434 |
2,658,017 | |||||||
BNDES - Purchase of assets |
44 |
1,382 |
5,048 |
6,474 |
47 |
966 |
5,331 |
6,344 | |||||||
BNDES - Working Capital |
664 |
21,773 |
130,786 |
153,223 |
233 |
4,172 |
45,887 |
50,292 | |||||||
Furnas Centrais Elétricas S.A. |
- |
- |
- |
- |
- |
15,769 |
- |
15,769 | |||||||
Financial Institutions |
25,353 |
143,698 |
759,047 |
928,098 |
8,994 |
275,105 |
62,823 |
346,922 | |||||||
Other |
565 |
21,487 |
27,198 |
49,250 |
558 |
22,404 |
29,056 |
52,018 | |||||||
Subtotal |
36,725 |
499,622 |
3,227,949 |
3,764,296 |
20,396 |
650,325 |
2,477,490 |
3,148,211 | |||||||
FOREIGN CURRENCY |
|||||||||||||||
IDB |
265 |
3,943 |
51,144 |
55,352 |
271 |
3,814 |
51,571 |
55,656 | |||||||
Financial Institutions |
491 |
4,055 |
46,087 |
50,633 |
1,215 |
4,009 |
47,566 |
52,790 | |||||||
Subtotal |
756 |
7,998 |
97,231 |
105,985 |
1,486 |
7,823 |
99,137 |
108,446 | |||||||
Total at cost |
37,481 |
507,620 |
3,325,180 |
3,870,281 |
21,882 |
658,148 |
2,576,627 |
3,256,657 | |||||||
At Fair Value |
|||||||||||||||
FOREIGN CURRENCY |
|||||||||||||||
Financial Institutions |
5,560 |
- |
414,201 |
419,761 |
77,229 |
653,835 |
388,925 |
1,119,989 | |||||||
Total |
5,560 |
- |
414,201 |
419,761 |
77,229 |
653,835 |
388,925 |
1,119,989 | |||||||
Total |
43,041 |
507,620 |
3,739,381 |
4,290,042 |
99,111 |
1,311,983 |
2,965,552 |
4,376,646 |
42
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated |
||||||||||
At cost |
June 30, 2010 |
March 31, 2010 |
Remuneration |
Amortization |
Collateral | |||||
Local currency |
||||||||||
BNDES - Power Increases |
||||||||||
CPFL Geração |
16,937 |
18,793 |
TJLP + 3.1% to 4.3% p.a. |
36 to 84 monthly installments from February 2003 to December 2008 |
Guarantee of CPFL Paulista and CPFL Energia | |||||
CPFL Geração |
23 |
56 |
UMBND + 4.0% p.a. |
72 monthly installments from September 2004 |
Guarantee of CPFL Paulista and CPFL Energia | |||||
BNDES - Investment |
||||||||||
CPFL Paulista - FINEM II |
31,818 |
47,741 |
TJLP + 5.4% p.a. |
48 monthly installments from January 2007 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Paulista - FINEM III |
94,138 |
100,888 |
TJLP + 3.3% p.a. |
72 monthly installments from January 2008 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Paulista - FINEM IV |
221,943 |
234,312 |
TJLP + 3.28% to 3.4% p.a. |
60 monthly installments from January 2010 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Paulista - FINAME |
1,640 |
- |
Fixed rate 4.5% p.a |
96 monthly installments from January 2012 |
Guarantee of CPFL Energia | |||||
CPFL Piratininga - FINEM I |
11,847 |
17,777 |
TJLP + 5.4%p.a. |
48 monthly installments from January 2007 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Piratininga - FINEM II |
55,923 |
59,931 |
TJLP + 3.3%p.a. |
72 monthly installments from January 2008 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Piratininga - FINEM III |
94,468 |
99,741 |
TJLP + 3.28% to 3.4% p.a. |
60 monthly installments from January 2010 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Piratininga - FINAME |
649 |
- |
Fixed rate 4.5% p.a |
96 monthly installments from January 2012 |
Guarantee of CPFL Energia | |||||
RGE - FINEM III |
56,055 |
61,678 |
TJLP + 5.0% p.a. |
60 monthly installments from January 2008 |
Receivables / Reserve account | |||||
RGE - FINEM IV |
156,043 |
164,753 |
TJLP + 3.28 to 3.40% p.a. |
60 monthly installments from January 2010 |
Receivables / Guarantee of CPFL Energia | |||||
RGE - FINAME |
1,655 |
- |
Fixed rate 4.5% p.a |
96 monthly installments from January 2012 |
Guarantee of CPFL Energia | |||||
CPFL Santa Cruz |
9,390 |
9,320 |
TJLP + 2.00% to 2.90% p.a. |
54 monthly installments from December 2010 |
Guarantee of CPFL Energia | |||||
CPFL Mococa |
3,018 |
3,018 |
TJLP + 2.9% p.a. |
54 monthly installments from January 2011 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Jaguari |
2,499 |
2,497 |
TJLP + 2.9% p.a. |
54 monthly installments from December 2010 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Leste Paulista |
3,261 |
2,022 |
TJLP + 2.9% p.a. |
54 monthly installments from June 2011 |
Guarantee of CPFL Energia and receivables | |||||
CPFL Sul Paulista |
4,735 |
3,347 |
TJLP + 2.9% p.a. |
54 monthly installments from June 2011 |
Guarantee of CPFL Energia and receivables | |||||
BAESA |
128,151 |
132,120 |
TJLP + 3.125% to 4.125%p.a. |
144 monthly installments from September 2006 |
Pledge of shares, credit rights and revenue | |||||
BAESA |
27,462 |
27,882 |
UMBND + 3.125% p.a. (1) |
144 monthly installments from November 2006 |
Pledge of shares, credit rights and revenue | |||||
ENERCAN |
290,520 |
298,901 |
TJLP + 4% p.a. |
144 monthly installments from April 2007 |
Letters of Credit | |||||
ENERCAN |
18,195 |
18,459 |
UMBND + 4% p.a. |
144 monthly installments from April 2007 |
Letters of Credit | |||||
CERAN |
259,980 |
265,696 |
TJLP + 5% p.a. |
168 monthly installments from December 2005 |
Guarantee of CPFL Energia | |||||
CERAN |
39,521 |
40,018 |
UMBND + 5% p.a. (1) |
168 monthly installments from February 2006 |
Guarantee of CPFL Energia | |||||
CERAN |
118,271 |
120,668 |
TJLP + 3.69% p.a. (Average of percentage) |
168 monthly installments from November 2008 |
Guarantee of CPFL Energia | |||||
Foz do Chapecó |
920,263 |
901,115 |
TJLP + 2.49% to 2.95% p.a. |
192 monthly installments from October 2011 |
Pledge of Shares, credit rights and those arising from the Concession, blocked income and guarantee of CPFL Energia | |||||
CPFL Bioenergia |
22,891 |
15,540 |
TJLP + 1.9% p.a. |
144 monthly installments from June 2011 |
Trust property, credit rights and guarantee of CPFL Energia | |||||
CPFL Bioenergia |
35,955 |
30,593 |
Fixed rate 4.5% p.a |
102 monthly installments from June 2011 |
Trust property, credit rights and guarantee of CPFL Energia | |||||
BNDES - Other |
||||||||||
CPFL Brasil - Purchase of assets |
6,474 |
6,344 |
TJLP + de 1.94% à 2.84% p.a. |
36 monthly installments from May 2009 |
Linked to the asset acquired | |||||
CPFL Piratininga - Working capital |
51,635 |
50,292 |
TJLP + 5.0% (2) |
24 monthly installments from February 2011 |
No guarantee | |||||
CPFL Geração - FINEM - Working capital |
50,479 |
- |
TJLP + 4.95% p.a. |
24 monthly installments from February 2011 |
Guarantee of CPFL Energia | |||||
CPFL Geração - FINAME - Working capital |
51,109 |
- |
TJLP + 4.95% p.a. (3) |
23 monthly installments from February 2011 |
Guarantee of CPFL Energia | |||||
Furnas Centrais Elétricas S.A. |
||||||||||
CPFL Geração |
- |
15,769 |
IGP-M + 10% p.a. |
24 monthly installments from June 2008 |
Energy produced by plant | |||||
Financial Institutions |
||||||||||
CPFL Paulista |
||||||||||
Banco do Brasil - Law 8727 |
37,409 |
38,410 |
IGP-M + 7.42% p.a. |
240 monthly installments from May 1994 |
Receivables | |||||
Banco do Brasil |
104,628 |
- |
107% of CDI |
1 installment in April 2015 |
Guarantee of CPFL Energia | |||||
CPFL Piratininga |
||||||||||
Banco Alfa |
- |
50,000 |
105.1% of CDI |
1 installment in April 2010 |
No guarantee | |||||
CPFL Santa Cruz |
||||||||||
HSBC |
42,719 |
41,681 |
CDI + 1.10% p.a. |
1 installment in June 2011 |
Guarantee of CPFL Energia | |||||
CPFL Geração |
||||||||||
Banco Itaú BBA |
102,920 |
100,557 |
106.0% of CDI |
1 installment in March 2011 |
Guarantee of CPFL Energia | |||||
Banco Alfa |
- |
99,485 |
105.1% of CDI |
1 installment in April 2010 |
Guarantee of CPFL Energia | |||||
Banco Brasil |
625,865 |
- |
107.0% of CDI |
1 installment in April 2015 |
Guarantee of CPFL Energia | |||||
CERAN |
||||||||||
Banco Bradesco |
14,557 |
16,789 |
CDI + 2% p.a. |
24 monthly installments from November 2008 |
No guarantee | |||||
Other |
||||||||||
Eletrobrás |
||||||||||
CPFL Paulista |
6,461 |
7,554 |
RGR + 6.0% to 9.0% p.a. |
Monthly installments until July 2016 |
Receivables/Promissory notes | |||||
CPFL Piratininga |
1,170 |
1,292 |
RGR + 6% p.a. |
Monthly installments until July 2016 |
Receivables/Promissory notes | |||||
RGE |
11,749 |
11,921 |
RGR + 6% p.a. |
Monthly installments until June 2020 |
Receivables/Promissory notes | |||||
CPFL Santa Cruz |
4,304 |
4,482 |
RGR + 6% p.a. |
Monthly installments until April 2018 |
Receivables/Promissory notes | |||||
CPFL Leste Paulista |
1,158 |
1,190 |
RGR + 6% p.a. |
Monthly installments until February 2022 |
Receivables/Promissory notes | |||||
CPFL Sul Paulista |
1,681 |
1,730 |
RGR + 6% p.a. |
Monthly installments until July 2018 |
Receivables/Promissory notes | |||||
CPFL Jaguari |
118 |
30 |
RGR + 6% p.a. |
Monthly installments until May 2017 |
Receivables/Promissory notes | |||||
CPFL Mococa |
434 |
430 |
RGR + 6% p.a. |
Monthly installments until February 2022 |
Receivables/Promissory notes | |||||
Other |
22,175 |
23,389 |
||||||||
Local Currency - At cost |
3,764,296 |
3,148,211 |
||||||||
Foreign currency |
||||||||||
IBD - Enercan |
55,352 |
55,656 |
US$ + Libor + 3.5% p.a. |
49 quarterly installments from June 2007 |
Guarantee of CPFL Energia | |||||
Financial Institutions |
||||||||||
CPFL Paulista (5) |
||||||||||
Debt Conversion Bond |
4,300 |
5,363 |
US$ + Libor 6 months+ 0.875% p.a. |
17 semiannual installments from April 2004 |
Revenue/Government SP guaranteed | |||||
C-Bond |
7,783 |
8,830 |
US$ + 8% p.a. |
21 semiannual installments from April 2004 |
Revenue/Government SP guaranteed | |||||
Discount Bond |
15,756 |
15,717 |
US$ + Libor 6 months+ 0.8125% p.a. |
1 installment in April 2024 |
Escrow deposits and revenue/ Gov.SP guarantee | |||||
PAR-Bond |
22,794 |
22,880 |
US$ + 6% p.a. |
1 installment in April 2024 |
Escrow deposits and revenue/ Gov.SP guarantee | |||||
Foreign currency - At cost |
105,985 |
108,446 |
||||||||
Total at cost |
3,870,281 |
3,256,657 |
||||||||
Foreign currency |
||||||||||
At fair Value |
||||||||||
Financial institution |
||||||||||
CPFL Paulista |
||||||||||
Banco do Brasil |
- |
103,996 |
Yen + 5.7778% p.a. |
1 installment in January 2011 |
No guarantee | |||||
Banco ABN AMRO Real |
419,761 |
392,651 |
Yen +1.49% p.a.(4) |
1 installment in January 2012 |
No guarantee | |||||
CPFL Geração |
||||||||||
Banco do Brasil |
- |
104,141 |
Yen + 5.8% p.a. |
1 installment in April 2010 |
Guarantee of CPFL Energia | |||||
Banco do Brasil |
- |
519,201 |
Yen + 2.5% to 5.8% p.a. |
1 installment in January 2011 |
Guarantee of CPFL Energia | |||||
Foreign currency - Fair value |
419,761 |
1,119,989 |
||||||||
Total - Consolidated |
4,290,042 |
4,376,646 |
||||||||
The subsdiaries hold swaps converting the local cost of currency variation to interest tax variation in reais, corresponding to | ||||||||||
(1) 169.0% of CDI |
(3) 106% of CDI |
|||||||||
(2) 106% to 106.5% of CDI |
(4) 104.98% of CDI |
|||||||||
(9) As certain assets are dollar indexed, a partial swap of R$ 30,841 was contracted, converting the currency variation to 112.9 % of the CDI. |
43
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
As shown in the breakdown in the figures above, the Company and its subsidiaries, in compliance with CPC 14 Financial Instruments, classified their debts as (i) financial liabilities not measured at fair value (or measured at cost), and (ii) financial liabilities calculated at fair value through profit or loss.
The objective of classification as financial liabilities measured at fair value is to compare the effects of recognition of income and expenses derived from marking to market the derivatives used as a hedge tied to the respective debts in order to obtain more relevant and consistent accounting information. The following figure provides additional information as to the cost value of the debts and the comparison with the respective fair values:
June 30, 2010 | ||||||||
Value at cost |
Fair value (accounting balance) | |||||||
Interest |
Principal |
Total |
||||||
Foreign currency |
Noncurrent |
|||||||
At fair value |
||||||||
CPFL Paulista |
||||||||
Banco ABN AMRO Real |
5,560 |
418,528 |
424,088 |
419,761 | ||||
Total Foreign currency - Consolidated |
5,560 |
418,528 |
424,088 |
419,761 |
The change in the fair value of this debt is recorded in the financial income (expense) of the subsidiaries. The gain obtained by marking this debt to market (R$ 4,327) is offset by the effect of R$ 8,020 obtained by marking to market the derivative financial instrument contracted as a hedge against exchange and interest variations (Note 28), generating a net loss of R$ 3,693.
Main funding in the period:
Local currency
BNDES Investment:
FINEM IV (CPFL Paulista) - The subsidiary obtained approval for financing of R$ 345,990 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. No funds were released during this quarter and the remaining estimated balance of R$ 101,025 is scheduled for release by the end of 2010.
FINEM III (CPFL Piratininga) The subsidiary obtained approval for financing of R$ 155,178 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. No funds were received during this quarter and the remaining balance of R$ 50,733 is scheduled for release by of the end of 2010.
44
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
FINAME (CPFL Paulista) The subsidiary obtained approval for financing of R$ 92,183 from the BNDES in 2009, part of a FINAME credit line to be used to acquire equipment for the Electricity System in 2010 and 2011. The subsidiary received R$ 1,637 in this quarter and the remaining balance of R$ 90,546 is scheduled for release by the end of 2011. The interest will be paid quarterly and as from January 15, 2012, it will be amortized on a monthly basis. There are no restrictive covenants.
FINAME (CPFL Piratininga) The subsidiary obtained approval for financing of R$ 48,116 from the BNDES in 2009, part of a FINAME credit line to be used to acquire equipment for the Electricity System in 2010 and 2011. The subsidiary received R$ 648 in this quarter and the remaining balance of R$ 47,468 is scheduled for release by the end of 2011. The interest will be paid quarterly and as from January 15, 2012, it will be amortized on a monthly basis.
FINAME (RGE) The subsidiary obtained approval for financing of R$ 32,419 from the BNDES in 2009, part of a FINAME credit line to be used to acquire equipment for the Electricity System in 2010 and 2011. The subsidiary received R$ 1,652 in this quarter and the remaining balance of R$ 30,767 is scheduled for release by the end of 2011. The interest will be paid quarterly and as from January 15, 2012, it will be amortized on a monthly basis.
BNDES Working Capital:
FINEM/FINAME (CPFL Geração) A credit line was obtained from Banco do Brasil during this quarter, with FINEM/FINAME funding, the purpose of which is to reinforce working capital. The interest will be capitalized and incorporated to the principal during the grace period and paid monthly thereafter. There are no restrictive covenants.
Financial Institutions:
CPFL Paulista and CPFL Geração In this quarter, the subsidiaries CPFL Paulista and CPFL Geração novated loans held by Banco do Brasil. The objective of these novations was to extend the due dates of these loans, which also resulted in changes in the indexes used, becoming tied to the Interbank Deposit rate (CDI). The interest is to be paid half-yearly as from October 2010.
RESTRICTIVE COVENANTS
The loan and financing agreements are subject to certain restrictive covenants, containing clauses that, among other conditions, require the subsidiaries to maintain certain financial ratios within predefined parameters. Details of these restrictive covenants are presented in the financial statements as of December 31, 2009.
The Management of the Company and its subsidiaries monitor these indices systematically and constantly to ensure that the contractual conditions are complied with. In the opinion of Management of the Company and its subsidiaries, all restrictive covenants and clauses are being adequately complied with.
( 16 ) DEBENTURES
45
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||||||||
June 30, 2010 |
March 31, 2010 | |||||||||||||
Issued |
Remuneration |
Effective rate |
Amortization Conditions |
Collateral |
Interest |
Current |
Noncurrent |
Total |
Interest |
Current |
Noncurrent |
Total | ||
Parent Company |
|
|
|
|
|
|
|
|
||||||
3rd Issue |
||||||||||||||
Single series |
45,000 |
CDI + 0.45% p.a. (1) |
CDI + 0.53% p.a. |
3 annual installments from September 2012 |
Quirografária |
13,673 |
- |
450,000 |
463,673 |
3,122 |
- |
450,000 |
453,122 | |
CPFL Paulista |
||||||||||||||
3rd Issue |
||||||||||||||
1st series |
64,000 |
104.4% of CDI p.a. |
104.4% CDI + 0.05% p.a. |
3 annual installments from December 2011 |
CPFL Energia guarantee |
5,027 |
- |
640,000 |
645,027 |
18,224 |
- |
640,000 |
658,224 | |
4th Issue |
||||||||||||||
Single series |
175,000 |
110.3% of CDI p.a. |
110.3% CDI + |
2 annual installments from July 2010 |
CPFL Energia guarantee |
8,216 |
64,301 |
109,947 |
182,464 |
3,840 |
64,301 |
109,774 |
177,915 | |
13,243 |
64,301 |
749,947 |
827,491 |
22,064 |
64,301 |
749,774 |
836,139 | |||||||
CPFL Piratininga |
||||||||||||||
1st Issue |
||||||||||||||
1st series |
40,000 |
104.0% of CDI p.a. |
104.0% CDI + |
2 annual installments from January 2010 |
CPFL Energia guarantee |
8,841 |
199,738 |
- |
208,579 |
4,136 |
200,000 |
- |
204,136 | |
2nd issue |
||||||||||||||
Single series |
1 |
106.45% of CDI p.a. |
106.45% CDI + |
May 2, 2011 |
Unsecured |
- |
- |
- |
- |
4,389 |
- |
100,000 |
104,389 | |
3rd issue |
||||||||||||||
Single series |
260 |
107.0% of CDI p.a. |
107.0% CDI + 0.67% p.a. |
April 1st, 2015 |
CPFL Energia guarantee |
6,075 |
- |
258,997 |
265,072 |
- |
- |
- |
- | |
14,916 |
199,738 |
258,997 |
473,651 |
8,525 |
200,000 |
100,000 |
308,525 | |||||||
RGE |
||||||||||||||
2nd issue |
||||||||||||||
1st series |
2,620 |
IGP-M + 9.6% p.a. |
IGP-M + 9.73% p.a. |
April 1st, 2011 |
Unsecured |
604 |
26,930 |
- |
27,534 |
2,474 |
555 |
26,200 |
29,229 | |
3rd issue |
||||||||||||||
1st series |
1 |
CDI + 0.60% p.a. (2) |
CDI + 0.71% p.a. |
3 annual installments from December 2011 |
CPFL Energia guarantee |
800 |
- |
100,000 |
100,800 |
2,926 |
- |
100,000 |
102,926 | |
2nd series |
1 |
CDI + 0.60% p.a. (3) |
CDI + 0.71% p.a. |
3 annual installments from December 2011 |
CPFL Energia guarantee |
6,369 |
- |
140,000 |
146,369 |
2,986 |
- |
140,000 |
142,986 | |
3rd series |
1 |
CDI + 0.60% p.a. (4) |
CDI + 0.71% p.a. |
3 annual installments from December 2011 |
CPFL Energia guarantee |
1,527 |
- |
40,000 |
41,527 |
567 |
- |
40,000 |
40,567 | |
4th series |
1 |
CDI + 0.60% p.a. (5) |
CDI + 0.84% p.a. |
3 annual installments from December 2011 |
CPFL Energia guarantee |
1,165 |
- |
50,000 |
51,165 |
2,211 |
- |
50,000 |
52,211 | |
5th series |
1 |
CDI + 0.60% p.a. (5) |
CDI + 0.84% p.a. |
3 annual installments from December 2011 |
CPFL Energia guarantee |
1,165 |
- |
50,000 |
51,165 |
2,211 |
- |
50,000 |
52,211 | |
4th issue |
||||||||||||||
Single series |
185,000 |
110.30% of CDI p.a |
110.3% CDI + |
July 1st, 2011 |
Unsecured |
8,685 |
- |
184,242 |
192,927 |
4,060 |
- |
183,990 |
188,050 | |
20,315 |
26,930 |
564,242 |
611,487 |
17,435 |
555 |
590,190 |
608,180 | |||||||
CPFL Leste Paulista |
||||||||||||||
1st Issue |
||||||||||||||
Single series |
2,400 |
111.90% of CDI p.a. |
111.9% CDI + |
July 1st, 2011 |
CPFL Energia guarantee |
1,143 |
- |
23,929 |
25,072 |
534 |
- |
23,911 |
24,445 | |
CPFL Sul Paulista |
||||||||||||||
1st Issue |
||||||||||||||
Single series |
1,600 |
111.00% of CDI p.a. |
111% CDI + |
July 1st, 2011 |
CPFL Energia guarantee |
756 |
- |
15,957 |
16,713 |
353 |
- |
15,946 |
16,299 | |
CPFL Jaguari |
||||||||||||||
1st Issue |
||||||||||||||
Single series |
1,000 |
111.90% of CDI p.a. |
111.9% CDI + |
July 1st, 2011 |
CPFL Energia guarantee |
476 |
- |
9,965 |
10,441 |
223 |
- |
9,956 |
10,179 | |
CPFL Brasil |
||||||||||||||
1st Issue |
July 1st, 2011 |
|||||||||||||
Single series |
16,500 |
111% of CDI p.a. |
111% CDI + |
July 1st, 2011 |
CPFL Energia guarantee |
7,796 |
- |
164,493 |
172,289 |
3,644 |
- |
164,336 |
167,980 | |
CPFL Geração |
||||||||||||||
2nd issue |
||||||||||||||
Single series |
425,250 |
109.8% of CDI |
109.8% CDI + |
July 1st, 2011 |
CPFL Energia guarantee |
19,872 |
- |
423,908 |
443,780 |
9,289 |
- |
423,600 |
432,889 | |
3rd issue |
||||||||||||||
Single series |
264,000 |
107.0% of CDI |
107.0% of CDI + 0.67% p.a. |
1 installment in April 2015 |
CPFL Energia guarantee |
6,168 |
- |
262,738 |
268,906 |
- |
- |
- |
- | |
EPASA |
||||||||||||||
1st Issue |
||||||||||||||
Single series |
450 |
112.6% of CDI p.a. |
116.9% of CDI p.a. |
December 1st, 2010 |
CPFL Energia guarantee |
14,765 |
228,982 |
- |
243,747 |
8,812 |
228,726 |
- |
237,538 | |
BAESA |
||||||||||||||
1st series |
9,000 |
CDI + 0.3% p.a. |
CDI + 0.43% p.a. |
Quarterly with settlement in August 2016 |
Letters of Guarantee |
316 |
3,139 |
16,479 |
19,934 |
289 |
3,164 |
17,403 |
20,856 | |
2nd series |
9,000 |
CDI + 0.4% p.a |
106% CDI + |
Quarterly with settlement in August 2016 |
Letters of Guarantee |
778 |
3,110 |
6,221 |
10,109 |
548 |
3,085 |
6,082 |
9,715 | |
1,094 |
6,249 |
22,700 |
30,043 |
837 |
6,249 |
23,485 |
30,571 | |||||||
114,217 |
526,200 |
2,946,876 |
3,587,293 |
74,838 |
499,831 |
2,551,198 |
3,125,867 | |||||||
The Company and its subsdiaries hold swap converting the local cost of currency variation to interest tax variation in reais, corresponding to | ||||||||||||||
(1) 104.4% of CDI |
(3) 104.85% of CDI |
(5) 104.87% of CDI |
||||||||||||
(2) 105.07% of CDI |
(4) 104.9% of CDI |
46
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Funding in the period:
CPFL Piratininga
260 non-convertible, subordinated, registered book-entry debentures in a single series were subscribed and paid up in April 2010. The unit par value on the date of issue was R$ 1,000, which generated total funding of R$ 260,000 (R$ 258,692 net of issuing costs). Interest on these debentures is payable half yearly as from October 1, 2010. The funding raised was used to reinforce the Companys working capital and for early redemption of the subordinated ordinary debentures from the Companys 2nd public issue of October 1, 2008.
The funds raised were distributed as follows: (i) approximately 60% (sixty percent) to reinforce the Companys working capital; and (ii) approximately 40% (forty percent) for early redemption of the subsidiary's second public issue of simple subordinated debentures, issued on October 1, 2008, with a debit balance at March 31, 2010 of R$ 104,389.
CPFL Geração
The subsidiary issued 264 non-convertible unsecured debentures in a single series on April 1, 2010. The unit face value on the date of issue was R$ 1,000, which generated total funding of R$ 264,000 (R$ 262,672 net of issuing costs). Interest on the debentures will be paid half yearly as from October 1, 2010. The funding raised by this debenture issue was used to reinforce working capital
The interest on the debentures of subsidiaries is paid half yearly, except for: (i) the 1st series of the indirect subsidiary BAESA, which will be paid quarterly; (ii) the 1st issue of the subsidiary CPFL Piratininga and 1st series of 2nd issue of the subsidiary RGE, which will be paid annually.
RESTRICTIVE COVENANTS
The debentures issued during this quarter by the subsidiaries CPFL Piratininga and CPFL Geração are subject to certain restrictive covenants and include clauses that require the subsidiaries to maintain certain financial ratios within pre-established parameters. The financial ratios demanded for the funding raised in this period are as follows:
CPFL Piratininga:
· Net indebtedness divided by EBITDA maximum of 3.0;
· EBITDA divided by Financial Income (Expense) minimum of 2.25;
CPFL Geração:
· Net indebtedness divided by EBITDA maximum of 4.5;
· EBITDA divided by Financial Income (Expense) minimum of 2.
The other debentures are subject to certain restrictive covenants, the details of which are set forth in the December 31, 2009 financial statements.
The Management of the Company and its subsidiaries monitor these ratios systematically and constantly to ensure that the conditions are complied with.
In the opinion of the managements of the Company and its subsidiaries, these restrictive conditions and clauses are being adequately complied with.
47
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 17 ) SUPPLIERS
|
|
Consolidated | ||
Current |
|
June 30, 2010 |
|
March 31, 2010 |
|
|
|
|
|
System Service Charges |
|
53,037 |
|
47,851 |
Energy Purchased |
|
647,881 |
|
637,052 |
Electricity Network Usage Charges |
|
140,556 |
|
133,250 |
Materials and Services |
|
167,176 |
|
107,492 |
Regulatory Liability (note 3) |
|
67,547 |
|
66,077 |
Other |
|
2,225 |
|
2,947 |
Total |
|
1,078,422 |
|
994,669 |
|
|
|
|
|
Noncurrent |
|
|
|
|
Electricity Network Usage Charges |
|
21,328 |
|
31,992 |
Total |
|
21,328 |
|
31,992 |
( 18 ) TAXES AND CONTRIBUTIONS PAYABLE
|
|
Consolidated | ||||||
|
|
Current |
|
Noncurrent | ||||
|
|
June 30, 2010 |
|
March 31, 2010 |
|
June 30, 2010 |
|
March 31, 2010 |
ICMS (State VAT) |
|
281,782 |
|
333,334 |
|
- |
|
- |
PIS (Tax on Revenue) |
|
14,338 |
|
12,584 |
|
- |
|
- |
COFINS (Tax on Revenue) |
|
67,238 |
|
58,762 |
|
1,309 |
|
1,476 |
IRPJ (Corporate Income Tax) |
|
93,881 |
|
76,271 |
|
- |
|
- |
CSLL (Social Contribution Tax) |
|
23,285 |
|
23,549 |
|
- |
|
- |
IRRF Interest on Shareholders' Equity |
|
13,798 |
|
- |
|
- |
|
- |
Other |
|
30,395 |
|
28,116 |
|
- |
|
- |
Total |
|
524,717 |
|
532,616 |
|
1,309 |
|
1,476 |
( 19 ) EMPLOYEE PENSION PLANS
The subsidiaries sponsor supplementary retirement and pension plans for their employees, with the following characteristics:
I CPFL Paulista
The plans currently in effect for the employees of the subsidiary CPFL Paulista through the CESP Foundation are Supplementary Pension Plans, with a defined benefit plan in place up to October 31, 1997, after which a mixed benefit plan was adopted.
On modification of the Pension Plan in October 1997, the subsidiary recognized an obligation to pay in respect of the plan deficit determined at the time by the external actuaries of Fundação CESP. This deficit will be liquidated in 240 monthly installments and 20 annual installments, maturing in October 2017, plus interest of 6% p.a. and restatement based on the IGP-DI (FGV). Through the addendum to the agreement with Fundação CESP dated January 17, 2008, the payment terms were changed to 238 monthly payments and 19 annual installments, in relation to the base date of December 31, 2007, with final maturity on October 31, 2027. The balance of the liability as of June 30, 2010 is R$ 522,485 (R$ 510,858 in March 31, 2010). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CVM Decision no 371/00.
48
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Managers may opt for a Free Benefit Generator Plan PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.
II CPFL Piratininga
A Supplementary Retirement and Pension Plan is currently in effect for CPFL Piratiningas employees, through the CESP Foundation with a defined benefit plan (Proportional Paid-Up Supplementary Benefit Plan BSPS) in effect up to March 31, 1998, and after that date, a plan with a defined benefit component and a defined contribution component.
In September 1997, through a contractual instrument of adjustment of reserves to be amortized, Eletropaulo Metropolitana Eletricidade de São Paulo S.A. (the predecessor of Bandeirante) recognized an obligation to pay in respect of the plan deficit determined at the time by the external actuaries of Fundação CESP, to be liquidated in 240 monthly installments and 20 annual installments, maturing in October 2017 and amortized monthly, plus interest of 6% p.a. and restatement based on the IGP-DI (FGV). Under the Contractual Amendment, signed with Fundação CESP on January 17, 2008, the payment terms were amended to 221 monthly payments and 18 annual installments, in relation to the base date of December 31, 2007, with final maturity on May 31, 2026. The balance of the liability as of June 30, 2010 is R$ 154,308 (R$ 151,034 as of March 31, 2010). The contract amount differs from the accounting entries made by the subsidiary, which are in conformity with CVM Decision no 371/00.
Managers may opt for a Free Benefit Generator Plan PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.
III RGE
In the case of employees whose work contracts were transferred from CEEE to RGE, the plan is a defined benefit type plan, with a benefit level equal to 100% of the adjusted average of the most recent salaries, including the presumed Social Security benefit, with a Segregated Net Asset administered by ELETROCEEE.
For employees admitted as from 1997, a defined contribution Benefit Generating Plan (PGBL Plano Gerador de Benefício Livre e de Contribuição Definida) private pension plan was set up with Bradesco Vida e Previdência in January 2006. This plan does not generate any actuarial responsibility for the company.
Managers may opt for a Free Benefit Generator Plan PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.
IV CPFL Santa Cruz
The benefits plan of the subsidiary CPFL Santa Cruz, administered by BB Previdência - Fundo de Pensão do Banco do Brasil, is a defined contribution plan.
Managers may opt for a Free Benefit Generator Plan PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.
49
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
V CPFL Geração
The plan currently in force for the employees of subsidiary CPFL Geração through the CESP Foundation is a Supplementary Pension Plan, along the same lines as the CPFL Paulista plan.
With the modification of the Retirement Plan, at that point maintained by CPFL Paulista, in October 1997, a liability was recognized as payable by the subsidiary CPFL Geração, relating to the plan deficit calculated by the external actuaries of Fundação CESP, which is being amortized on a 240 monthly installments and 20 annual installments, until October 2017, plus interest of 6% p.a. and restatement according to the IGP-DI (FGV). Under the Contractual Amendment, signed with Fundação CESP on January 17, 2008, the payment terms were amended to 238 monthly installments and 19 annual installments, in relation to the base date of December 31, 2007, with final maturity on October 31, 2027. The balance of the obligation, as of June 30, 2010 is R$ 10,512 (R$ 10,278 as of March 31, 2010). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CVM Decision no 371/00.
Managers may opt for a Free Benefit Generator Plan PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.
VI CPFL Jaguariúna
In November 2005, the companies joined the CMSPREV private pension plan, administered by IHPREV Pension Fund. The plan is a defined contribution plan.
Managers may opt for a Free Benefit Generator Plan PGBL (defined contribution), operated by either Banco do Brasil or Bradesco.
VII Changes in the defined benefit plans
In accordance with CVM Decision Nº 371/00, the changes in the net actuarial liability in this quarter are as follows:
|
|
June 30, 2010 | ||||||||
|
|
CPFL |
|
CPFL |
|
RGE |
|
CPFL |
|
Consolidated |
|
|
Paulista |
|
Piratininga |
|
|
|
Geração |
|
|
Net actuarial liability at the beginning of the period |
|
318,041 |
|
94,523 |
|
(11,003) |
|
5,018 |
|
406,579 |
Income recognized in income statement |
|
(17,692) |
|
(3,516) |
|
(293) |
|
(299) |
|
(21,800) |
Sponsor's contributions during the year |
|
(11,461) |
|
(3,396) |
|
(343) |
|
(251) |
|
(15,451) |
Net actuarial liability at the end of the year |
|
288,888 |
|
87,611 |
|
(11,639) |
|
4,468 |
|
369,328 |
Other contributions |
|
13,384 |
|
(232) |
|
4,992 |
|
154 |
|
18,298 |
Total |
|
302,272 |
|
87,379 |
|
(6,647) |
|
4,622 |
|
387,626 |
|
|
|
|
|
|
|
|
|
|
|
Current |
|
30,183 |
|
9,698 |
|
2,470 |
|
655 |
|
43,006 |
Noncurrent |
|
272,089 |
|
77,681 |
|
(9,117) |
|
3,967 |
|
344,620 |
Total |
|
302,272 |
|
87,379 |
|
(6,647) |
|
4,622 |
|
387,626 |
Expense and income recognized as operating cost in the actuarial report are shown below:
50
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
|
|
2nd quarter 2010 | ||||||||
|
|
CPFL |
|
CPFL |
|
RGE |
|
CPFL |
|
Consolidated |
|
|
Paulista |
|
Piratininga |
|
|
|
Geração |
|
|
Cost of service |
|
275 |
|
1,202 |
|
288 |
|
36 |
|
1,801 |
Interest on actuarial liabilities |
|
73,114 |
|
18,883 |
|
4,587 |
|
1,586 |
|
98,170 |
Expected return on assets |
|
(91,072) |
|
(23,288) |
|
(5,929) |
|
(1,921) |
|
(122,210) |
Unrecognized cost of past service |
|
- |
|
3 |
|
- |
|
- |
|
3 |
Subtotal |
|
(17,683) |
|
(3,200) |
|
(1,054) |
|
(299) |
|
(22,236) |
Expected contributions from participants |
|
(9) |
|
(316) |
|
468 |
|
- |
|
143 |
Subtotal |
|
(17,692) |
|
(3,516) |
|
(586) |
|
(299) |
|
(22,093) |
Decrease of 50% on Prepaid Pension Expense (*) |
|
- |
|
- |
|
293 |
|
- |
|
293 |
Total Income |
|
(17,692) |
|
(3,516) |
|
(293) |
|
(299) |
|
(21,800) |
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd quarter 2009 | ||||||||
|
|
CPFL |
|
CPFL |
|
RGE |
|
CPFL |
|
Consolidated |
|
|
Paulista |
|
Piratininga |
|
|
|
Geração |
|
|
Cost of service |
|
361 |
|
1,367 |
|
314 |
|
41 |
|
2,083 |
Interest on actuarial liabilities |
|
75,755 |
|
19,245 |
|
4,407 |
|
1,633 |
|
101,040 |
Expected return on assets |
|
(76,088) |
|
(19,388) |
|
(4,597) |
|
(1,617) |
|
(101,690) |
Unrecognized cost of past service |
|
- |
|
3 |
|
- |
|
- |
|
3 |
Amortization of unrecognized actuarial gains |
|
- |
|
- |
|
- |
|
16 |
|
16 |
Subtotal |
|
28 |
|
1,227 |
|
124 |
|
73 |
|
1,452 |
Expected contributions from participants |
|
(8) |
|
(324) |
|
(274) |
|
- |
|
(606) |
Subtotal |
|
20 |
|
903 |
|
(150) |
|
73 |
|
846 |
Decrease of 50% on Prepaid Pension Expense (*) |
|
- |
|
- |
|
75 |
|
- |
|
75 |
Total (Income) Expense |
|
20 |
|
903 |
|
(75) |
|
73 |
|
921 |
|
|
|
|
|
|
|
|
|
|
|
(*) As the sponsor, RGE matches the participants contributions to this plan, only 50% was recorded. |
|
|
|
|
|
|
The principal premises considered in the actuarial calculations were:
|
CPFL Paulista, CPFL Piratininga e CPFL Geração |
|
RGE | ||||
|
| ||||||
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominal discount rate for actuarial liabilities: |
10.24% p.a. |
|
10.24% p.a. |
|
10.24% p.a. |
|
10.24% p.a. |
Nominal Return Rate on Assets: |
(*) |
|
(**) |
|
11.28% p.a. |
|
10.24% p.a. |
Estimated Rate of nominal salary increase: |
6.08% p.a. |
|
6.08% p.a. |
|
6.08% p.a. |
|
6.08% p.a. |
Estimated Rate of nominal benefits increase: |
0.0% p.a. |
|
0.0% p.a. |
|
0.0% p.a. |
|
0.0% p.a. |
Estimated long-term inflation rate (basis for establishing nominal rates above) |
4.0% p.a. |
|
4.0% p.a. |
|
4.0% p.a. |
|
4.0% p.a. |
General biometric mortality table: |
AT-83 |
|
AT-83 |
|
AT-83 |
|
AT-83 |
Biometric table for the onset of disability: |
TÁBUA MERCER |
|
TÁBUA MERCER |
|
Light-Average |
|
Light-Average |
Expected turnover rate: |
0.30 / (Service time + 1) |
|
0.30 / (Service time + 1) |
|
null |
|
null |
|
|
|
|
|
|
|
|
Likelihood of reaching retirement age: |
100% when a beneficiary of the Plan first becomes eligible |
100% when a beneficiary of the Plan first becomes eligible |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) CPFL Paulista and CPFL Geração 14.36% p.a. and CPFL Piratininga 14.05% p.a. | |||||||
(**) CPFL Paulista and CPFL Geração 13.05% p.a. and CPFL Piratininga 12.84% p.a. |
51
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 20 ) REGULATORY CHARGES
|
|
Consolidated | ||
|
|
June 30, 2010 |
|
March 31, 2010 |
Fee for the Use of Water Resources |
|
4,000 |
|
3,377 |
Global Reverse Fund - RGR |
|
14,860 |
|
10,468 |
ANEEL Inspection Fee |
|
2,113 |
|
1,934 |
Fuel Consumption Account - CCC |
|
48,690 |
|
44,216 |
Energy Development Account - CDE |
|
40,044 |
|
40,033 |
Total |
|
109,707 |
|
100,028 |
( 21 ) RESERVE FOR CONTINGENCIES
|
Consolidated | ||||||||||||||
|
June 30, 2010 |
|
March 31, 2010 | ||||||||||||
|
Reserve for contingencies - Gross |
Escrow Deposits related to Contingencies (1) |
Reserve for Contingencies, net |
Other escrow deposits (2) |
Reserve for contingencies - Gross |
Escrow Deposits related to Contingencies (1) |
Reserve for Contingencies, net |
Other deposits, Judicial (2) | |||||||
Labor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Various |
41,336 |
|
39,069 |
|
2,267 |
|
96,757 |
|
42,864 |
|
39,108 |
|
3,756 |
|
92,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Civil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Damages |
10,992 |
|
10,962 |
|
30 |
|
74,967 |
|
10,526 |
|
10,526 |
|
- |
|
72,816 |
Tariff Increase |
13,185 |
|
3,364 |
|
9,821 |
|
5,903 |
|
12,805 |
|
3,736 |
|
9,069 |
|
5,420 |
Energy Purchased |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Other |
12,989 |
|
6,333 |
|
6,656 |
|
8,882 |
|
13,398 |
|
6,196 |
|
7,202 |
|
9,381 |
|
37,166 |
|
20,659 |
|
16,507 |
|
89,752 |
|
36,729 |
|
20,458 |
|
16,271 |
|
87,617 |
Tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINSOCIAL |
18,638 |
|
18,638 |
|
- |
|
34,467 |
|
18,614 |
|
18,614 |
|
- |
|
34,420 |
Increase in basis - PIS and COFINS |
830 |
|
721 |
|
109 |
|
127 |
|
795 |
|
721 |
|
74 |
|
428 |
Interest on Shareholders Equity - PIS and COFINS |
10,193 |
|
9,800 |
|
393 |
|
393 |
|
9,987 |
|
9,800 |
|
187 |
|
187 |
PIS and COFINS - Non-Cumulative Method |
85,994 |
|
- |
|
85,994 |
|
- |
|
- |
|
- |
|
- |
|
- |
Income Tax |
69,398 |
|
49,471 |
|
19,927 |
|
468,351 |
|
67,184 |
|
47,601 |
|
19,583 |
|
459,961 |
Other |
8,153 |
|
5,695 |
|
2,458 |
|
11,797 |
|
7,979 |
|
5,591 |
|
2,388 |
|
11,011 |
|
193,206 |
|
84,325 |
|
108,881 |
|
515,135 |
|
104,559 |
|
82,327 |
|
22,232 |
|
506,007 |
Total |
271,708 |
|
144,053 |
|
127,655 |
|
701,644 |
|
184,152 |
|
141,893 |
|
42,259 |
|
686,348 |
The change in the balances related to reserve for contingencies and escrow deposits are shown below:
Consolidated | |||||||||||
March 31, 2010 |
Addition |
Reversal |
Payment |
Monetary Restatement |
June 30, 2010 | ||||||
Labor |
42,864 |
1,993 |
(192) |
(3,329) |
- |
41,336 | |||||
Civil |
36,729 |
1,729 |
(211) |
(1,219) |
138 |
37,166 | |||||
Tax |
104,559 |
131,719 |
(39,502) |
- |
(3,573) |
193,206 | |||||
Reserve for Contingencies - Gross |
184,152 |
135,441 |
(39,905) |
(4,548) |
(3,435) |
271,708 | |||||
Escrow Deposits (1) + (2) |
828,241 |
13,906 |
(742) |
(6,266) |
10,558 |
845,697 |
The reserves for contingencies were based on appraisal of the risks of losing litigation to which the Company and its subsidiaries are parties, where a loss is probable in the opinion of the legal advisers and the management of the Company and its subsidiaries.
52
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Details of the nature of the provisions for contingencies and judicial deposits are presented in the financial statements as of December 31, 2009.
Fiscal: PIS and COFINS Non-cumulative method
In the understanding of the subsidiaries management, and as commented in Note 3.c.5, the subsidiaries reclassified the consolidated amount of R$ 129,632 recorded as a regulatory liability to Provisions for Contingencies. This reclassification was decided in light of the taxation discussions regarding the non-cumulative incidence of PIS and COFINS on certain sectorial charges. After the reclassification of these amounts considering current tax legislation in force, the subsidiaries posted adjustments by (i) reversing a contingency of R$ 39,502 and posting to the General and Administrative Expenses Legal, Judicial and Indemnities account and (ii) reversing a monetary restatement of a consolidated amount of R$4,136 to set against Financial Expense Monetary restatements and exchange variations.
Possible Losses - The Company and its subsidiaries are parties to other suits processes and risks in which management, supported by its legal advisers, believes that the chances of a successful outcome are possible, due to a solid defensive base in these cases. These questions do not yet indicate a trend in the decisions of the courts or any other decision in similar proceedings considered probable or remote, and therefore no provision has been established for these. As of June 30, 2010, the claims relating to possible losses were as follows: (i) R$ 313,548 for labor suits (R$ 306,018 as of March 31, 2010); (ii) R$ 545,152 for civil suits, mainly for suits for personal injuries, environmental damages and tariff increases (R$ 504,512 as of March 31, 2010); and (iii) R$ 639,813 in respect of tax suits, relating basically to Income Tax, ICMS, FINSOCIAL and PIS and COFINS (R$ 700,299 as of March 31, 2010).
Based on the opinion of their legal advisers, Management of the Company and of its subsidiaries consider that there are no significant contingent risks that are not covered by adequate provisions in the Financial Statements, or that might result in the significant impact on future earnings.
53
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 22 ) OTHER ACCOUNTS PAYABLE
Consolidated | ||||||||
Current |
Noncurrent | |||||||
June 30, 2010 |
March 31, 2010 |
June 30, 2010 |
March 31, 2010 | |||||
Consumers and Concessionaires |
54,352 |
55,417 |
- |
- | ||||
Regulatory Liability (note 3 ) |
119,500 |
241,799 |
33,863 |
28,784 | ||||
Energy Efficiency Program - PEE |
60,124 |
63,986 |
51,272 |
54,213 | ||||
Research & Development - P&D |
112,049 |
103,165 |
14,630 |
16,287 | ||||
National Scientific and Technological Development Fund - FNDCT |
4,504 |
4,711 |
- |
- | ||||
Energy Research Company - EPE |
1,921 |
2,005 |
- |
- | ||||
Fund for Reversal |
- |
- |
17,750 |
17,750 | ||||
Advances |
7,509 |
7,359 |
63,884 |
62,738 | ||||
Interest on Compulsory Loan |
1,380 |
1,740 |
- |
- | ||||
Provision for Environmental Expenses |
1,851 |
2,455 |
372 |
3,859 | ||||
Payroll |
6,097 |
6,634 |
- |
- | ||||
Profit sharing |
29,003 |
40,082 |
- |
- | ||||
TAC ANEEL fine (DEC/FEC and voltage level) |
- |
8,755 |
- |
- | ||||
Collections agreement (note 11) |
44,533 |
22,826 |
- |
- | ||||
Other |
51,540 |
34,748 |
9,065 |
8,175 | ||||
Total |
494,363 |
595,682 |
190,836 |
191,806 |
( 23 ) SHAREHOLDERS EQUITY
The shareholders' participations in the Company's equity as of June 30, 2010 and March 31, 2010 are distributed as follows:
Amount of shares | ||||||||
June 30, 2010 |
March 31, 2010 | |||||||
Shareholders |
Common Shares |
Interest % |
Common Shares |
Interest % | ||||
VBC Energia S.A. |
122,948,720 |
25.55 |
122,948,720 |
25.62 | ||||
BB Carteira Livre I FIA |
149,233,727 |
31.02 |
149,233,727 |
31.10 | ||||
Bonaire Participações S.A. |
60,713,511 |
12.62 |
60,713,511 |
12.65 | ||||
BNDES Participações S.A. |
40,526,739 |
8.42 |
40,526,739 |
8.44 | ||||
Board Members |
112 |
- |
112 |
- | ||||
Executive Officers |
5,624 |
- |
14,759 |
- | ||||
Other Shareholders |
107,708,697 |
22.39 |
106,473,370 |
22.19 | ||||
Total |
481,137,130 |
100.00 |
479,910,938 |
100.00 |
23.1 Capital Increase
The EGM/AGM of CPFL Energia held on April 26, 2010, approved the merger of all the shares held by the minority shareholders of the subsidiaries CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, Jaguari Geração, CPFL Serviços and CPFL Santa Cruz with the equity of CPFL Energia and conversion of these companies into wholly-owned subsidiaries. Accordingly, the CPFL Energia capital increased by R$ 52,249, from R$ 4,741,175 to R$ 4,793,424 with the issue of 1,226,192 new common shares.
23.2 Dividends and Interest on Shareholders Equity
54
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Parent Company | ||||
June 30, 2010 |
March 31, 2010 | |||
Dividends payable |
||||
VBC Energia S.A. |
197,896 |
167,809 | ||
BB Carteira Livre I FIA |
240,204 |
203,685 | ||
Bonaire Participações S.A. |
97,723 |
82,866 | ||
BNDES Participações S.A. |
65,231 |
55,314 | ||
Brumado Holdings S.A. |
27,767 |
23,545 | ||
Other Shareholders |
162,342 |
138,794 | ||
Total |
791,163 |
672,013 |
In this quarter, the Company paid out R$ 652,302 relating to dividends declared and provisioned as of December 31, 2009. In addition, the Companys Board of Directors proposed interim dividends of R$ 774,429 corresponding to R$1.609579599 per share, on the results in the first half year of 2010.
( 24 ) GROSS SALES AND SERVICES INCOME
55
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||
2010 |
2009 | |||||||
Revenue from Eletric Energy Operations |
2nd quarter |
6 months |
2nd quarter |
6 months | ||||
Consumer class |
||||||||
Residential |
1,314,494 |
2,705,408 |
1,248,234 |
2,455,140 | ||||
Industrial |
1,049,963 |
2,048,454 |
1,031,083 |
1,915,063 | ||||
Commercial |
682,915 |
1,413,593 |
665,975 |
1,303,218 | ||||
Rural |
102,033 |
212,124 |
109,492 |
210,913 | ||||
Public Administration |
97,728 |
189,006 |
96,966 |
177,802 | ||||
Public Lighting |
74,301 |
149,803 |
73,704 |
141,119 | ||||
Public Services |
116,394 |
231,747 |
116,800 |
219,639 | ||||
Billed |
3,437,828 |
6,950,135 |
3,342,254 |
6,422,894 | ||||
Unbilled (Net) |
(57,882) |
(11,123) |
17,243 |
44,475 | ||||
Emergency Charges - ECE/EAEE |
- |
3 |
(7) |
(7) | ||||
Regulatory assets and liabilities (note 3) |
62,769 |
97,725 |
5,735 |
(55,148) | ||||
Reclassification to Network Usage Charge - TUSD - Captive Consumers |
(1,426,149) |
(3,021,642) |
(1,415,708) |
(2,888,140) | ||||
Electricity sales to final consumers |
2,016,566 |
4,015,098 |
1,949,517 |
3,524,074 | ||||
Furnas Centrais Elétricas S.A. |
86,630 |
172,348 |
88,146 |
175,364 | ||||
Other Concessionaires and Licensees |
146,497 |
270,240 |
197,096 |
366,243 | ||||
Current Electric Energy |
15,361 |
16,991 |
30,514 |
53,028 | ||||
Electricity sales to wholesaler |
248,488 |
459,579 |
315,756 |
594,635 | ||||
Revenue due to Network Usage Charge - TUSD - Captive Consumers |
1,426,149 |
3,021,642 |
1,415,708 |
2,888,140 | ||||
Revenue due to Network Usage Charge - TUSD - Free Consumer |
261,702 |
502,180 |
196,336 |
376,890 | ||||
Regulatory assets and liabilities (note 3) - Low Income Consumer´s Subsidy |
6,263 |
7,215 |
2,935 |
20,045 | ||||
Other Revenue and Income |
50,382 |
112,643 |
46,522 |
110,745 | ||||
Other operating revenues |
1,744,496 |
3,643,680 |
1,661,501 |
3,395,820 | ||||
Total |
4,009,550 |
8,118,357 |
3,926,774 |
7,514,529 |
Consolidated | ||||||||
2010 |
2009 | |||||||
Revenue from Eletric Energy Operations - in GWh (*) |
2nd quarter |
6 months |
2nd quarter |
6 months | ||||
Consumer class |
||||||||
Residential |
3,187 |
6,471 |
3,002 |
6,139 | ||||
Industrial |
3,910 |
7,691 |
3,627 |
7,095 | ||||
Commercial |
1,892 |
3,912 |
1,772 |
3,658 | ||||
Rural |
485 |
1,041 |
574 |
1,140 | ||||
Public Administration |
285 |
550 |
273 |
526 | ||||
Public Lighting |
359 |
715 |
352 |
699 | ||||
Public Services |
431 |
854 |
414 |
830 | ||||
Billed |
10,549 |
21,234 |
10,014 |
20,087 | ||||
Own Consumption |
8 |
17 |
8 |
17 | ||||
Electricity sales to final consumers |
10,557 |
21,251 |
10,022 |
20,104 | ||||
Furnas Centrais Elétricas S.A. |
754 |
1,501 |
754 |
1,501 | ||||
Other Concessionaires, Licensees and Authorized |
1,626 |
3,166 |
1,789 |
3,368 | ||||
Current Electric Energy |
625 |
904 |
819 |
1,032 | ||||
Electricity sales to wholesaler |
3,005 |
5,571 |
3,362 |
5,901 | ||||
(*) Information not reviewed by the independent auditors |
56
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||
No. of Consumers (*) |
June 30, 2010 |
June 30, 2009 | ||
Consumer class |
||||
Residential |
5,785,107 |
5,629,474 | ||
Industrial |
78,063 |
77,832 | ||
Commercial |
494,855 |
495,186 | ||
Rural |
236,846 |
237,048 | ||
Public Administration |
44,512 |
42,912 | ||
Public Lighting |
7,908 |
7,402 | ||
Public Services |
7,158 |
6,714 | ||
Total |
6,654,449 |
6,496,568 | ||
(*) Information not reviewed by the independent auditors |
In compliance with ANEEL Order 4,722 of December 18, 2009, which sets out the basic procedures for preparing financial statements, the subsidiaries reclassified certain revenue amounts posted under the heading Electric Energy Supplied (a sales operation), to Other Operating Revenue (a distribution operation), under the heading of Revenue due to Network Usage Revenue TUSD Captive Consumer.
57
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 25 ) COST OF ELECTRIC ENERGY
Consolidated | ||||||||
2010 |
2009 | |||||||
Electricity Purchased for Resale |
2nd quarter |
6 months |
2nd quarter |
6 months | ||||
Energy Purchased in Restricted Framework - ACR |
||||||||
Itaipu Binacional |
255,320 |
516,081 |
295,658 |
633,281 | ||||
Furnas Centrais Elétricas S.A. |
35,907 |
72,904 |
38,084 |
74,992 | ||||
CESP - Cia Energética de São Paulo |
43,437 |
84,657 |
43,052 |
86,511 | ||||
Cia de Geração de Energia Elétrica do Tietê |
- |
7,975 |
- |
- | ||||
Cia de Geração Témica Energia Elétrica - CGTEE |
4,069 |
- |
5,678 |
11,036 | ||||
Duke Energy Inter. Ger. Paranapanema S.A. |
1,785 |
3,717 |
1,744 |
3,521 | ||||
Tractebel Energia S.A. |
282,799 |
588,351 |
289,418 |
519,477 | ||||
Petróleo Brasileiro S.A. Petrobrás |
48,457 |
100,819 |
47,310 |
94,379 | ||||
CHESF - Cia Hidro Elétrica do São Francisco |
29,046 |
57,593 |
29,448 |
57,989 | ||||
CEMIG - Cia Energética de Minas Gerais |
31,757 |
67,426 |
63,562 |
104,899 | ||||
Termorio S.A. |
25,971 |
46,316 |
17,566 |
25,305 | ||||
Enguia Gen |
3,249 |
5,412 |
1,145 |
2,926 | ||||
EMAE - Empresa Metropolitana de Águas e Energia |
154 |
327 |
69 |
138 | ||||
Cia Estadual Energia Elétrica - CEEE |
157 |
315 |
207 |
417 | ||||
Santa Cruz Geração de Energia S/A |
7,618 |
15,023 |
7,401 |
13,954 | ||||
AES Uruguaiana Ltda. |
- |
- |
6,571 |
11,742 | ||||
Câmara de Comercialização de Energia Elétrica - CCEE |
8,854 |
16,734 |
13,508 |
65,265 | ||||
Copel Geração e Transmissão S.A. |
16,395 |
35,449 |
17,303 |
34,828 | ||||
COOMEX Empresa Operadora do Mercado Energético Ltda. |
- |
- |
22,772 |
32,166 | ||||
PROINFA |
45,005 |
94,585 |
42,690 |
88,931 | ||||
Companhia Energética Santa Clara - CESC |
5,430 |
9,537 |
4,380 |
9,468 | ||||
Queiroz Galvão Energética S.A. |
11,718 |
20,058 |
9,321 |
20,997 | ||||
Other |
123,895 |
235,889 |
58,867 |
187,976 | ||||
981,023 |
1,979,168 |
1,015,754 |
2,080,198 | |||||
Energy Purchased in the Free Market - ACL |
358,845 |
619,678 |
373,873 |
663,719 | ||||
1,339,868 |
2,598,846 |
1,389,627 |
2,743,917 | |||||
Regulatory assets and liabilities (note 3) |
13,374 |
211,005 |
70,078 |
42,282 | ||||
Credit of PIS and COFINS |
(122,615) |
(254,709) |
(130,180) |
(251,056) | ||||
Subtotal |
1,230,627 |
2,555,142 |
1,329,525 |
2,535,143 | ||||
Electricity Network Usage Charge |
||||||||
Basic Network Charges |
225,793 |
455,023 |
217,536 |
436,712 | ||||
Transmission from Itaipu |
22,380 |
42,807 |
19,620 |
39,157 | ||||
Connection Charges |
12,508 |
25,438 |
12,326 |
24,239 | ||||
Charges of Use of the Distribution System |
6,927 |
13,653 |
6,018 |
12,329 | ||||
System Service Charges - ESS |
39,731 |
78,776 |
5,346 |
55,846 | ||||
Reserve Energy charges |
14,836 |
16,517 |
- |
3,219 | ||||
322,175 |
632,214 |
260,846 |
|
571,502 | ||||
Regulatory assets (note 3) |
6,715 |
39,815 |
79,365 |
30,480 | ||||
Credit of PIS and COFINS |
(30,601) |
(61,153) |
(30,983) |
(55,784) | ||||
Subtotal |
298,289 |
610,876 |
309,228 |
546,198 | ||||
Total |
1,528,916 |
3,166,018 |
1,638,753 |
3,081,341 |
58
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||
2010 |
2009 | |||||||
Electricity Purchased for Resale - in GWh (*) |
2nd quarter |
6 months |
2nd quarter |
6 months | ||||
Energy Purchased in Restricted Framework - ACR |
||||||||
Itaipu Binacional |
2,620 |
5,353 |
2,757 |
5,476 | ||||
Furnas Centrais Elétricas S.A. |
404 |
810 |
424 |
849 | ||||
CESP - Cia Energética de São Paulo |
435 |
855 |
450 |
920 | ||||
Cia de Geração Térmica Energia Elétrica - CGTEE |
37 |
75 |
56 |
112 | ||||
Duke Energy Inter. Ger. Paranapanema S.A. |
20 |
42 |
20 |
42 | ||||
Tractebel Energia S.A. |
1,939 |
4,068 |
2,055 |
3,725 | ||||
Petróleo Brasileiro S.A. Petrobrás |
407 |
825 |
381 |
795 | ||||
CHESF - Cia Hidro Elétrica do São Francisco |
338 |
653 |
341 |
683 | ||||
CEMIG - Cia Energética de Minas Gerais |
248 |
536 |
422 |
762 | ||||
Termorio S.A. |
101 |
162 |
50 |
102 | ||||
Enguia Gen |
15 |
17 |
- |
- | ||||
EMAE - Empresa Metropolitana de Águas e Energia |
1 |
3 |
1 |
2 | ||||
Cia Estadual Energia Elétrica - CEEE |
2 |
4 |
3 |
6 | ||||
Santa Cruz Geração de Energia S/A |
62 |
123 |
60 |
115 | ||||
AES Uruguaiana Ltda. |
- |
- |
35 |
70 | ||||
Câmara de Comercialização de Energia Elétrica - CCEE |
485 |
1,499 |
1,341 |
2,331 | ||||
Copel Geração e Transmissão S.A. |
161 |
354 |
178 |
364 | ||||
COOMEX Empresa Operadora do Mercado Energético Ltda. |
- |
- |
157 |
222 | ||||
PROINFA |
264 |
495 |
207 |
388 | ||||
Companhia Energética Santa Clara - CESC |
40 |
70 |
32 |
69 | ||||
Queiroz Galvão Energética S.A. |
84 |
143 |
66 |
149 | ||||
Other |
1,130 |
2,175 |
544 |
1,489 | ||||
8,793 |
18,262 |
9,580 |
18,671 | |||||
Energy Purchased in the Free Market - ACL |
3,926 |
7,369 |
4,033 |
7,343 | ||||
12,719 |
25,631 |
13,613 |
26,014 | |||||
(*) Information not reviewed by the independent auditors |
In compliance with ANEEL Order no 4,722/2009, the subsidiaries reclassified amounts relating to the PROINFA quota, in relation to amounts billed to free consumers and own-power producers, from Cost of the Electric Energy Service, Energy Purchased for Resale to Deductions from Operating Income, Consumer Charges Other PROINFA, amounting to R$ 14,673 and R$ 8,819, respectively, for the second quarter of 2010 and the second quarter of 2009.
59
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 26 ) OPERATING EXPENSES
Parent Company | ||||||||
2010 |
2009 | |||||||
2nd quarter |
6 months |
2nd quarter |
6 months | |||||
General and Administrative Expenses |
||||||||
Personnel |
971 |
1,841 |
601 |
1,240 | ||||
Materials |
24 |
39 |
4 |
12 | ||||
Outside Services |
3,778 |
6,580 |
1,896 |
3,709 | ||||
Leases and Rentals |
25 |
47 |
30 |
69 | ||||
Depreciation and Amortization |
36 |
66 |
30 |
59 | ||||
Publicity and Advertising |
130 |
501 |
58 |
93 | ||||
Legal, Judicial and Indemnities |
15 |
361 |
34 |
405 | ||||
Other |
1,247 |
1,587 |
1,418 |
2,296 | ||||
Total |
6,226 |
11,022 |
4,071 |
7,883 | ||||
Other Operating Expenses |
||||||||
Loss on the write-off of noncurrent assets |
- |
- |
1,096 |
1,096 | ||||
Total |
- |
- |
1,096 |
1,096 | ||||
Intangible of concession amortization |
36,878 |
72,240 |
37,187 |
74,374 | ||||
Total |
43,104 |
83,262 |
42,354 |
83,353 |
60
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||
2010 |
2009 | |||||||
2nd quarter |
6 months |
2nd quarter |
6 months | |||||
Sales Expenses |
||||||||
Personnel |
20,603 |
38,274 |
18,284 |
34,535 | ||||
Materials |
955 |
1,585 |
2,246 |
2,773 | ||||
Outside Services |
21,100 |
38,320 |
17,572 |
34,328 | ||||
Allowance for Doubtful Accounts |
18,308 |
30,079 |
11,921 |
8,812 | ||||
Depreciation and Amortization |
2,230 |
4,417 |
2,753 |
5,520 | ||||
Collection Tariffs and Services |
11,731 |
23,040 |
12,969 |
24,447 | ||||
Other |
5,021 |
8,143 |
2,370 |
5,392 | ||||
Total |
79,948 |
143,858 |
68,115 |
115,807 | ||||
General and Administrative Expenses |
||||||||
Personnel |
39,380 |
80,883 |
40,067 |
71,967 | ||||
Materials |
2,134 |
4,844 |
1,849 |
3,299 | ||||
Outside Services |
40,970 |
85,319 |
32,655 |
72,586 | ||||
Leases and Rentals |
2,751 |
4,136 |
1,320 |
2,395 | ||||
Depreciation and Amortization |
5,533 |
11,138 |
5,939 |
11,953 | ||||
Publicity and Advertising |
1,767 |
2,717 |
643 |
1,163 | ||||
Legal, Judicial and Indemnities |
(29,635) |
(18,448) |
2,049 |
8,821 | ||||
Donations, Contributions and Subsidies |
1,489 |
2,573 |
1,223 |
2,411 | ||||
Other |
5,194 |
14,762 |
4,153 |
13,243 | ||||
Total |
69,583 |
187,924 |
89,898 |
187,838 | ||||
Other Operating Expenses |
||||||||
Inspection Fee |
6,278 |
12,081 |
5,562 |
11,680 | ||||
Loss on the write-off of noncurrent assets |
2,513 |
3,944 |
6,799 |
11,288 | ||||
Free Energy adjustment (note 3 a.1) | - | 2,527 | - | - | ||||
Other |
299 |
387 |
2,294 |
2,652 | ||||
Total |
9,090 |
18,939 |
14,655 |
25,620 | ||||
Intangible of concession amortization |
46,203 |
90,891 |
46,724 |
93,449 | ||||
Total |
204,824 |
441,612 |
219,392 |
422,714 |
The increase in Legal, Judicial and Indemnities refers mainly to the reversal of part of the provision relating to the contingency for PIS and COFINS as described in Note 21.
61
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
( 27 ) FINANCIAL INCOME AND EXPENSES
Parent Company | ||||||||
2010 |
2009 | |||||||
2nd quarter |
6 months |
2nd quarter |
6 months | |||||
Financial Income |
||||||||
Income from Financial Investments |
8,464 |
18,325 |
5,405 |
9,876 | ||||
Arrears of interest and fines |
- |
22 |
- |
- | ||||
Restatement of tax credits |
186 |
355 |
936 |
1,996 | ||||
Restatement of Escrow Deposits |
206 |
393 |
- |
- | ||||
PIS and COFINS of Interest on Shareholders' Equity |
(9,117) |
(9,117) |
(9,447) |
(9,447) | ||||
Other |
6,963 |
9,348 |
2,714 |
5,413 | ||||
Subtotal |
6,702 |
19,326 |
(392) |
7,838 | ||||
Interest on shareholder´s equity |
98,669 |
98,669 |
102,134 |
102,134 | ||||
Total |
105,371 |
117,995 |
101,742 |
109,972 | ||||
Financial Expense |
||||||||
Debt Charges |
(10,745) |
(20,588) |
(11,430) |
(25,422) | ||||
Monetary and Exchange Variations |
548 |
395 |
(230) |
(314) | ||||
Other |
(2,399) |
(3,557) |
(2,277) |
(4,040) | ||||
Subtotal |
(12,596) |
(23,750) |
(13,937) |
(29,776) | ||||
Total |
(12,596) |
(23,750) |
(13,937) |
(29,776) | ||||
Net financial income (expense) |
92,775 |
94,245 |
87,805 |
80,196 |
62
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Consolidated | ||||||||
2010 |
2009 | |||||||
2nd quarter |
6 months |
2nd quarter |
6 months | |||||
Financial Income |
||||||||
Income from Financial Investments |
34,631 |
64,513 |
17,863 |
40,712 | ||||
Arrears of interest and fines |
32,921 |
65,844 |
34,861 |
64,925 | ||||
Restatement of tax credits |
82 |
1,269 |
1,179 |
2,446 | ||||
Restatement of Escrow Deposits |
10,558 |
19,878 |
11,493 |
24,419 | ||||
Monetary and Exchange Variations |
17,951 |
27,657 |
(4,132) |
19,114 | ||||
Interest - CVA and Parcel "A" (Note 3) |
1,536 |
24 |
11,832 |
29,191 | ||||
Discount on purchase of ICMS credit |
1,566 |
3,569 |
1,738 |
2,766 | ||||
PIS and COFINS of Interest on Shareholders' Equity |
(9,117) |
(9,117) |
(9,447) |
(9,447) | ||||
Other |
17,149 |
32,536 |
8,466 |
19,002 | ||||
Subtotal |
107,277 |
206,173 |
73,853 |
193,128 | ||||
Interest on shareholder´s equity |
- |
- |
- |
- | ||||
Total |
107,277 |
206,173 |
73,853 |
193,128 | ||||
Financial Expense |
||||||||
Debt Charges |
(150,759) |
(276,536) |
(128,621) |
(272,082) | ||||
Monetary and Exchange Variations |
(12,669) |
(43,777) |
(13,840) |
(43,428) | ||||
Interest - CVA and Parcel "A" (Note 3) |
(3,627) |
(3,627) |
- |
- | ||||
Other |
(14,210) |
(32,216) |
(24,818) |
(34,004) | ||||
Subtotal |
(181,265) |
(356,156) |
(167,279) |
(349,514) | ||||
Interest on shareholder´s equity |
- |
- |
(409) |
(409) | ||||
Total |
(181,265) |
(356,156) |
(167,688) |
(349,923) | ||||
Net financial income (expense) |
(73,988) |
(149,983) |
(93,835) |
(156,795) | ||||
( 28 ) FINANCIAL INSTRUMENTS AND OPERATING RISKS
a) Classification of the financial instruments
The financial instruments are classified as:
Financial assets, in the categories: (i) loans and receivables, (ii) calculated at fair value through profit or loss, (iii) held-to-maturity investments and, (iv) available for sale. Classification is based on the following criteria:
i. Loans and receivables
These are financial assets with fixed or calculable payments that are not quoted in an active market. These financial assets are recorded at historic cost by the amortized cost method.
The main financial assets of the Company and its subsidiaries classified in this category are: (i) consumers, concessionaires and licensees (Note 5), (ii) dividends and interest on capital (Note 12) and (iii) other credits (Note 11).
ii. Calculated at fair value through profit or loss
These are financial assets that are (i) maintained for short-term trading, (ii) designated at fair value with the objective of comparing the effects of recognition of income and expenses in order to obtain more relevant and consistent accounting information or, (iii) derivatives. These assets are recorded at their fair values and, in the case of any subsequent change in these fair values, they are set against the income statement of the Company.
63
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
The main financial assets of the Company and its subsidiaries classified in this category are: (i) cash and cash equivalents and short-term financial investments (Note 4) and (ii) derivatives.
iii. Held-to-maturity investments
These are non derivative financial assets with fixed or calculable payments and defined maturities, which the Company and its subsidiaries intend to maintain until maturity. The financial assets in this classification are recorded at historic cost by the amortized cost method.
The Company classifies the in this category the security receivable from CESP (Note 6).
iv. Available for sale
Refers to the financial assets that do not fall into any of the above classifications or that are designated as available for sale. These financial assets are recorded at the respective fair values and, in the case of any subsequent change in these fair values, they are set against the Companys equity.
The Company and its subsidiaries do not have financial assets classified in this category.
Financial liabilities, in the categories: (i) calculated at fair value through profit or loss, (ii) not calculated at fair value through profit or loss. They are classified in accordance with the following criteria:
i. Calculated at fair value through profit or loss
These are financial liabilities that are: (i) maintained for short-term trading, (ii) denominated at fair value with the objective of comparing the effects of recognition of income and expenses in order to obtain more relevant and consistent accounting information or, (iii) derivatives. These liabilities are recorded at their fair values and, in the case of any change in the calculation of these subsequent fair values, they are set against the income statement of the Company.
The Company and its subsidiaries classified the following financial liabilities in this category: (i) certain debts in foreign currencies (Note 15) and, (ii) derivatives.
ii. Not calculated at fair value through profit or loss
These are other financial liabilities that do not fall into the above category. The financial liabilities in this category are recorded and amortized basically by the amortized cost method.
The main financial liabilities classified in this category are: (i) suppliers (note 17), (ii) loans and financing (Note 15), (iii) debt charges (Note 15), (iv) debenture charges (Note 16), (v) debentures (Note 16) and (vi) other accounts payable (Note 22).
b) Risk Considerations:
The business of the Company and its subsidiaries comprises principally generation, sale and distribution of electric energy. As public service concessionaires, the operations and/or tariffs of its principal subsidiaries are regulated by ANEEL.
The principal market risk factors that affect the business are the following:
64
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Exchange rate risk: This risk derives from the possibility of the subsidiaries incurring losses and cash constraints on account of fluctuations in exchange rates, increasing the balances of foreign currency denominated liabilities. The exposure in relation to raising funds in foreign currency is largely covered by contracting swap operations, which allow the Company and its subsidiaries to exchange the original risks of the operation for the cost of the variation in the CDI.
The Companys subsidiaries are also exposed in their operations to exchange variations on the purchase of electric energy from Itaipu. The compensation mechanism - CVA protects the companies against possible losses.
Interest Rate Risk: This risk derives from the possibility of the Company and its subsidiaries incurring losses due to fluctuations in interest rates that increase financial expenses on loans, financing and debentures. The subsidiaries have also tried to increase the portion of pre-indexed loans or loans tied to indexes with lower rates and little fluctuation in the short and long term.
Credit Risk: This risk arises from the possibility of the subsidiaries incurring losses resulting from difficulties in receiving amounts billed to customers. This risk is evaluated by the subsidiaries as low, as it is spread over the number of customers and in view of the collection policy and cancellation of supply to defaulting consumers.
Risk of Energy Shortages: The energy sold by the subsidiaries is basically generated by hydropower plants. A prolonged period of low rainfall, together with an unforeseen increase in demand, could result in a reduction in the volume of water in the power plants reservoirs, compromising the recovery of their volume, and resulting in losses due to the increase in the cost of purchasing energy or a reduction in revenue due to the introduction of another rationing program, as in 2001. According to the Annual Energy Operation Plan PEN 2009, drawn up by the National Electricity System Operator, the risk of any energy deficit for 2010 is very low and the possibility of another energy rationing program becomes remote.
Risk of Acceleration of Debts: The Company and its subsidiaries have loan agreements, financing and debentures with restrictive clauses (covenants) normally applicable to these kinds of operation, related to compliance with economic and financial ratios, cash generation, etc. These covenants are monitored appropriately and do not restrict the capacity to operate normally.
Management of Risks on Financial instruments
The Company and its subsidiaries maintain certain operating and financial policies and strategies with a view to ensuring the liquidity, security and profitability of their assets. As a result, control and follow-up procedures are in place on the transactions and balances of financial instruments, for the purpose of monitoring the risks and current rates in relation to those used in the market.
Risk management controls: In order to manage the risks inherent to the financial instruments and to monitor the procedures established by management, the Company and its subsidiaries use the MAPS software system to calculate the VaR - Value at Risk, and Mark to Market, Stress Testing and Duration of the instruments, and assesses the risks to which the Company and its subsidiaries are exposed. Historically, the financial instruments contracted by the Company and the subsidiaries supported by these tools have produced adequate risk mitigation results. We stress that the Company and its subsidiaries contract derivatives, always with the appropriate levels of approval, only in the event of exposure that management regards as a risk. The Company and its subsidiaries do not enter into transactions involving exotic or speculative derivatives. Furthermore, the Company and its subsidiaries meet the requirements of the Sarbanes-Oxley Law, and accordingly have internal control policies that aim for a strict control environment to minimize the exposure to risks.
c) Valuation of Financial Instruments
65
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
The estimates of the market value of the financial instruments were based on pricing models, applied individually for each transaction, taking into consideration the future payment flows, based on the conditions contracted, discounted to present value at market interest rates, based on information obtained from the BM&F, BOVESPA and ANDIMA websites.
Accordingly, the market value of a security corresponds to its maturity value (redemption value) marked to present value by the discount factor (relating to the maturity date of the security) obtained from the market interest graph in Brazilian reais.
In the case of specific electricity sector operations, where there are no similar transactions in the market and with low liquidity, mainly related to regulatory aspects, the subsidiaries assumed that the market value is represented by the respective book value. This is due to the uncertainties reflected in the variables which have to be taken into consideration in creating a pricing model.
In addition to the assets and financial liabilities calculated at fair value through profit or loss, the Company and its subsidiaries have other financial liabilities not calculated at fair value. The market values of these financial instruments as of June 30 and March 31, 2010, applying the above methodology, presented for comparison purposes only, are shown below:
Parent Company | ||||||||
June 30, 2010 |
March 31, 2010 | |||||||
Accounting balance |
Fair value |
Accounting balance |
Fair value | |||||
Debentures (note 16) |
(463,673) |
(469,168) |
(453,122) |
(458,997) | ||||
Total |
(463,673) |
(469,168) |
(453,122) |
(458,997) | ||||
Consolidated | ||||||||
June 30, 2010 |
March 31, 2010 | |||||||
Accounting balance |
Fair value |
Accounting balance |
Fair value | |||||
Loans and financing (note 15) |
(3,870,281) |
(3,680,874) |
(3,256,657) |
(3,036,021) | ||||
Debentures (note 16) |
(3,587,293) |
(3,637,464) |
(3,125,867) |
(3,164,007) | ||||
Total |
(7,457,574) |
(7,318,338) |
(6,382,524) |
(6,200,028) |
d) Derivatives
As previously mentioned, the Company and its subsidiaries use derivatives as a hedge against the risks of variations in exchange and interest rates, without any speculative purposes. The Company and its subsidiaries have an exchange hedge compatible with the net exposure to exchange risks, including all the assets and liabilities tied to exchange variation.
The hedge instruments contracted by the Company and its subsidiaries are currency or interest rate swaps with no leverage component, margin call requirements or daily or periodical adjustments. As terms of the majority of the derivatives contracted by the Company and its subsidiaries are fully aligned with the debts protected, and in order to obtain more relevant and consistent accounting information through the recognition of income and expenses, the respective debts were denominated, for accounting purposes, at fair value. Other debts with different terms from the derivatives contracted as a hedge continue to be recorded at cost. Furthermore, the Company and its subsidiaries do not use hedge accounting for derivative operations.
66
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
As of June 30, 2010, the Company and its subsidiaries had the following swap operations:
Market values (book values) |
||||||||||||||||||
Company / strategy / counterparts |
Asset |
|
(Liability) |
|
Market values, net |
Values at cost, net |
|
Gain (Loss) on marking to market |
|
Currency / index |
|
Maturity range |
|
Notional |
|
Negotiation market | ||
Derivatives for protection of debts designated at fair value |
||||||||||||||||||
Exchange variation hedge |
||||||||||||||||||
CPFL Paulista |
||||||||||||||||||
ABN |
8,880 |
- |
8,879 |
16,899 |
(8,020) |
yen |
Jan 2012 |
376,983 |
Over the counter | |||||||||
Subtotal |
8,880 |
- |
8,879 |
16,899 |
(8,020) |
|||||||||||||
Derivatives for protection of debts not designated at fair value |
||||||||||||||||||
Exchange variation hedge |
||||||||||||||||||
CPFL Paulista |
||||||||||||||||||
Itau BBA |
- |
(71) |
(71) |
(22) |
(49) |
dollar |
Oct 2010 |
30,121 |
Over the counter | |||||||||
CPFL Geração |
||||||||||||||||||
HSBC |
- |
(1,107) |
(1,107) |
(908) |
(199) |
dollar |
Jul 2010 to Sep 2010 |
65,237 |
Over the counter | |||||||||
Hedge interest rate variation (1) |
||||||||||||||||||
CPFL Energia |
||||||||||||||||||
Citibank |
97 |
(701) |
(604) |
96 |
(700) |
CDI + spread |
Sep 2010 to Sep 2014 |
450,000 |
Over the counter | |||||||||
RGE |
||||||||||||||||||
Santander |
388 |
- |
388 |
144 |
244 |
CDI |
Jul 2010 to Dec 2013 |
280,000 |
Over the counter | |||||||||
Citibank |
46 |
- |
46 |
9 |
37 |
CDI |
Dec 2010 to Dec 2013 |
100,000 |
Over the counter | |||||||||
Hedge interest rate variation (2) |
||||||||||||||||||
CPFL Piratininga |
||||||||||||||||||
HSBC |
- |
(128) |
(128) |
25 |
(153) |
TJLP |
Jan 2013 |
25,453 |
Over the counter | |||||||||
Santander |
- |
(151) |
(151) |
24 |
(175) |
TJLP |
Jan 2013 |
25,453 |
Over the counter | |||||||||
CPFL Geração |
||||||||||||||||||
HSBC |
- |
(257) |
(257) |
43 |
(300) |
TJLP |
Dec 2012 |
50,377 |
Over the counter | |||||||||
Subtotal |
531 |
(2,415) |
(1,884) |
(589) |
(1,295) |
|||||||||||||
Total |
9,411 |
(2,415) |
6,995 |
16,310 |
(9,315) |
|||||||||||||
Current |
404 |
(1,281) |
||||||||||||||||
Noncurrent |
9,007 |
(1,134) |
||||||||||||||||
Total |
9,411 |
(2,415) |
||||||||||||||||
* For further details of terms and informationa bout debts and debentures, see Notes 15 and 16 | ||||||||||||||||||
(1) The interest rate hedge swaps have half-yearly validity, so the notional value reduces in accordance with amortization of the debt. | ||||||||||||||||||
(2) The interest rate hedge swaps have monthly validity, so the notional value reduces in accordance with amortization of the debt. |
In spite of the net losses determined by marking the derivatives shown above to market, the effects were minimized by the option exercised by the Company and its subsidiaries also to mark to market the debts tied to hedge instruments (note 15).
The Company and its subsidiaries have recorded gains and losses on their derivatives. However, as these derivatives are used as a hedge, these gains and losses minimized the impact of variations in exchange and interest rates on the protected indebtedness. For the periods ended in June 30, 2010 and 2009, the derivatives resulted in the following impacts on the consolidated result:
Gain (loss) | ||||||||||
|
2010 |
|
2009 | |||||||
Company |
Hedged risk / Operation |
Account |
2nd quarter |
6 months |
2nd quarter |
6 months | ||||
CPFL Energia |
Interest rate variation |
Financial expense - Swap transactions |
(14) |
164 |
24 |
(60) | ||||
CPFL Energia |
Marking to market |
Financial expense - Adjustment to fair value |
20 |
(231) |
(253) |
525 | ||||
CPFL Paulista |
Exchange variation |
Financial expense - Swap transactions |
(17,752) |
(16,962) |
(95,017) |
(171,470) | ||||
CPFL Paulista |
Marking to market |
Financial expense - Adjustment to fair value |
(754) |
(69) |
12,469 |
43,227 | ||||
CPFL Piratininga |
Exchange variation |
Financial expense - Swap transactions |
- |
- |
- |
(218) | ||||
CPFL Piratininga |
Interest rate variation |
Financial expense - Swap transactions |
49 |
49 |
- |
- | ||||
CPFL Piratininga |
Marking to market |
Financial expense - Adjustment to fair value |
(328) |
(328) |
- |
(126) | ||||
CPFL Geração |
Exchange variation |
Financial expense - Swap transactions |
(11,031) |
(8,238) |
(119,386) |
(204,924) | ||||
CPFL Geração |
Interest rate variation |
Financial expense - Swap transactions |
161 |
619 |
(230) |
(1,207) | ||||
CPFL Geração |
Marking to market |
Financial expense - Adjustment to fair value |
754 |
1,586 |
215 |
9,580 | ||||
RGE |
Exchange variation |
Financial expense - Adm other financial exp |
- |
- |
(5,955) |
(10,774) | ||||
RGE |
Interest rate variation |
Financial expense - Adm other financial exp |
159 |
341 |
116 |
133 | ||||
RGE |
Marking to market |
Financial expense - Derivative adjustment to fair value |
(118) |
(12) |
(156) |
577 | ||||
(28,854) |
(23,081) |
|
(208,173) |
(334,737) |
67
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Other exchange exposure
It should be noted that the indirect subsidiary ENERCAN has no swaps, as an exchange hedge, in relation to the debt of R$ 150,949 (R$ 73,543 in proportion to the participation of the subsidiary CPFL Geração) to the BID and BNDES of the portion tied to the basket of currencies, since a percentage of its tariff adjustments covers the exchange variation in the tariff period. In spite of the existence of a natural hedge against this exposure, the effect of exchange variations on these debts generated a loss of R$ 1,850 (R$ 901 in proportion to the participation of CPFL Geração) in the second quarter of 2010 and a loss of R$ 32,913 (R$ 16,035 in proportion to the participation of CPFL Geração) in the same period of 2009.
The subsidiary CPFL Paulista also has a total indebtedness in foreign currency of R$ 470,394. As a hedge against exchange exposure, it contracted derivatives used as a hedge directly tied to the indebtedness of R$ 419,761. To minimize the exchange exposure, the subsidiary also contracted a non tied derivative of R$ 30,841 and also has sufficient assets indexed in dollars (fund tied to foreign currency loans Note 11) to offset any exchange impact.
e) Sensitivity Analysis
In compliance with CVM Instruction n° 475/08, the Company and its subsidiaries performed sensitivity analyses of the main risks to which their financial instruments (including derivatives) are exposed, mainly comprising variations in exchange and interest rates, as shown below:
Exchange variation
If the level of exchange exposure at June 30, 2010 were maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:
Consolidated | ||||||||||
Instruments |
Exposure |
Risk |
Exchange depreciation of |
Exchange depreciation of 25%** |
Exchange depreciation of 50%** | |||||
Financial asset instruments |
22,945 |
apprec. dollar |
2,203 |
5,736 |
11,473 | |||||
Financial liability instruments |
(191,174) |
apprec. dollar |
(18,353) |
(47,793) |
(95,587) | |||||
Derivatives - Plain Vanilla Swap |
98,657 |
apprec. dollar |
9,471 |
24,664 |
49,329 | |||||
(69,572) |
(6,679) |
(17,393) |
(34,785) | |||||||
Financial liability instruments |
(419,761) |
apprec. yen |
(40,297) |
(104,940) |
(209,881) | |||||
Derivatives - Plain Vanilla Swap |
419,761 |
apprec. yen |
40,297 |
104,940 |
209,881 | |||||
- |
- |
- |
- | |||||||
(69,572) |
(6,679) |
(17,393) |
(34,785) | |||||||
* In accordance with exchange graphs contained in information provided by the BM&F | ||||||||||
**In compliance with CVM Instruction 475/08 |
Variation in interest rates
Supposing that (i) the scenario of exposure of the financial instruments indexed to variable interest rates
68
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
as of June 30, 2010 were to be maintained, and (ii) the respective accumulated annual indexes as of that date were to remain stable (CDI of 8.75% p.a.; IGP-M of 5.17% p.a.; TJLP of 6.00% p.a.), the effects on the consolidated financial statements for the next 12 months would be a net financial expense of R$ 462,765. In the event of fluctuations in the indexes in accordance with the three scenarios described, the effect on the net financial expense would as follows:
Consolidated | ||||||||||
Instruments |
Exposure |
Risk |
Scenario I* |
Raising index by 25%** |
Raising index by 50%** | |||||
Financial asset instruments |
1,976,203 |
CDI variation |
61,657 |
43,230 |
86,459 | |||||
Financial liability instruments |
(4,912,096) |
CDI variation |
(153,258) |
(107,453) |
(214,905) | |||||
Derivatives - Plain Vanilla Swap |
(614,566) |
CDI variation |
(19,174) |
(13,443) |
(26,887) | |||||
(3,550,459) |
(110,775) |
(77,666) |
(155,333) | |||||||
Financial assets instruments |
91,884 |
IGP-M variation |
781 |
1,188 |
2,375 | |||||
Financial liability instruments |
(64,943) |
IGP-M variation |
(552) |
(840) |
(1,679) | |||||
26,941 |
229 |
348 |
696 | |||||||
Financial liability instruments |
(2,661,362) |
TJLP variation |
3,459 |
(39,920) |
(79,840) | |||||
Derivatives - Plain Vanilla Swap |
103,144 |
TJLP variation |
(134) |
1,548 |
3,094 | |||||
(2,558,218) |
3,325 |
(38,372) |
(76,746) | |||||||
Total increase |
(6,081,736) |
(107,221) |
(115,690) |
(231,383) | ||||||
* The CDI, IGP-M and TJLP indexes considered of 11.87%, 6.02% and 5.87%, respectively, were obtained from information available in the market | ||||||||||
**In compliance with CVM Instruction 475/08 |
( 29 ) SUBSEQUENT EVENT
Loans and Financing
The Meeting of the Board of Directors held on July 28, 2010 approved that the distribution subsidiaries CPFL Paulista, CPFL Piratininga, RGE, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari and CPFL Santa Cruz take all measures necessary to obtain rural credit financing from Banco do Brasil of a total of up to R$ 500 million, with a term of up to 5 years and at a cost of 98.5% of the CDI plus structuring commission. The Company will be the guarantor for all these operations by providing sureties or aval guarantees.
69
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
07.01 COMMENTS ON PERFORMANCE IN THE QUARTER
Analysis of Results CPFL Energia (parent company)
Net income was R$ 384,230 in the second quarter of 2010, an increase of 33.0% (R$ 95,262) compared to the same quarter of the previous year, due mainly to results of equity in subsidiaries, as shown below:
2nd quarter 2010 |
2nd quarter 2009 | |||
CPFL Paulista |
180,323 |
102,343 | ||
CPFL Piratininga |
60,032 |
73,900 | ||
RGE |
80,119 |
33,796 | ||
CPFL Santa Cruz |
6,936 |
4,809 | ||
CPFL Leste Paulista |
4,630 |
3,271 | ||
CPFL Jaguari |
3,197 |
1,183 | ||
CPFL Sul Paulista |
4,444 |
3,288 | ||
CPFL Mococa |
3,248 |
1,883 | ||
CPFL Geração |
70,917 |
95,307 | ||
CPFL Brasil |
41,368 |
54,411 | ||
CPFL Atende |
(606) |
(653) | ||
CPFL Planalto |
2,815 |
1,627 | ||
CPFL Serviços |
898 |
(7,665) | ||
CPFL Jaguariúna |
(54) |
(61) | ||
CPFL Jaguari Geração |
1,941 |
2,018 | ||
Total |
460,208 |
369,457 |
70
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
12.01 COMMENTS ON CONSOLIDATED PERFORMANCE IN THE QUARTER
Information |
Consolidated | |||||
2nd |
2nd |
Variation |
1st |
1st |
Variation | |
GROSS REVENUE |
4,009,550 |
3,926,774 |
2.1% |
8,118,357 |
7,514,529 |
8.0% |
Electricity sales to final consumers (¹) |
3,442,715 |
3,365,225 |
2.3% |
7,036,739 |
6,412,214 |
9.7% |
Electricity sales to wholesaler |
248,488 |
315,756 |
-21.3% |
459,579 |
594,635 |
-22.7% |
Other operating revenues (¹) |
318,347 |
245,793 |
29.5% |
622,039 |
507,680 |
22.5% |
DEDUCTION FROM OPERATING REVENUE |
(1,369,541) |
(1,278,301) |
7.1% |
(2,693,284) |
(2,480,088) |
8.6% |
NET OPERATING REVENUE |
2,640,009 |
2,648,473 |
-0.3% |
5,425,073 |
5,034,441 |
7.8% |
ENERGY COST |
(1,528,916) |
(1,638,753) |
-6.7% |
(3,166,018) |
(3,081,341) |
2.7% |
Electricity purchased for resale |
(1,230,627) |
(1,329,525) |
-7.4% |
(2,555,142) |
(2,535,143) |
0.8% |
Electricity network usage charges |
(298,289) |
(309,228) |
-3.5% |
(610,876) |
(546,198) |
11.8% |
OPERATING COST/EXPENSE |
(436,401) |
(460,827) |
-5.3% |
(893,076) |
(887,529) |
0.6% |
Personnel |
(145,687) |
(144,102) |
1.1% |
(292,537) |
(268,299) |
9.0% |
Employee pension plan |
21,800 |
(921) |
-2467.0% |
43,599 |
(1,840) |
-2469.5% |
Material |
(19,219) |
(17,501) |
9.8% |
(36,113) |
(31,864) |
13.3% |
Outsourced Services |
(109,020) |
(91,875) |
18.7% |
(206,612) |
(182,612) |
13.1% |
Depreciation and Amortization |
(96,618) |
(97,022) |
-0.4% |
(193,551) |
(193,316) |
0.1% |
Merged Goodwill Amortization |
(46,204) |
(46,725) |
-1.1% |
(90,892) |
(93,449) |
-2.7% |
Other |
(41,453) |
(62,681) |
-33.9% |
(116,970) |
(116,149) |
0.7% |
INCOME FROM ELECTRIC UTILITY SERVICES |
674,692 |
548,893 |
22.9% |
1,365,979 |
1,065,571 |
28.2% |
FINANCIAL INCOME (EXPENSE) |
(73,988) |
(93,835) |
-21.2% |
(149,983) |
(156,795) |
-4.3% |
Income |
107,277 |
73,853 |
45.3% |
206,173 |
193,128 |
6.8% |
Expense |
(181,265) |
(167,279) |
8.4% |
(356,156) |
(349,514) |
1.9% |
Interest on Shareholders' Equity |
- |
(409) |
0.0% |
- |
(409) |
0.0% |
INCOME BEFORE TAX |
600,704 |
455,058 |
32.0% |
1,215,996 |
908,776 |
33.8% |
Social Contribution |
(56,788) |
(42,885) |
32.4% |
(116,327) |
(88,060) |
32.1% |
Income Tax |
(157,263) |
(120,915) |
30.1% |
(320,398) |
(244,669) |
31.0% |
INCOME BEFORE INTERESTS |
386,653 |
291,258 |
32.8% |
779,271 |
576,047 |
35.3% |
Noncontrolling interest |
(2,423) |
(2,699) |
-10.2% |
(4,842) |
(4,785) |
1.2% |
Reversal of Interest on Shareholders' Equity |
- |
409 |
- |
- |
409 |
- |
NET INCOME FOR THE PERIOD |
384,230 |
288,968 |
33.0% |
774,429 |
571,671 |
35.5% |
|
|
|
|
|
|
|
EBITDA |
793,291 |
690,862 |
14.8% |
1,601,981 |
1,349,391 |
18.7% |
|
|
|
|
|
|
|
Net Income for the Period and EBITDA Reconciliation (2) |
|
| ||||
NET INCOME FOR THE PERIOD |
384,230 |
288,968 |
774,429 |
571,671 |
| |
Employee Pension Plan |
(21,800) |
921 |
(43,599) |
1,840 |
| |
Depreciation and Amortization |
142,822 |
143,747 |
284,443 |
286,765 |
| |
Financial Income (Expense) |
73,988 |
93,835 |
149,983 |
156,795 |
| |
Social Contribution |
56,788 |
42,885 |
116,328 |
88,060 |
| |
Income Tax |
157,263 |
120,915 |
320,398 |
244,669 |
| |
Reversal of Interest on Net Equity |
- |
(409) |
- |
(409) |
| |
EBITDA |
793,291 |
690,862 |
1,601,982 |
1,349,391 |
| |
|
|
|
|
|
|
|
(¹) The reclassification of revenue from the Network Usage Charge - TUSD - Captive Consumers was not taken into account in presentation of the Comments on Consolidated Performance (note 24) | ||||||
(²) Information not reviewed by the independent accountants | ||||||
|
|
|
|
|
|
|
Gross Operating Revenue
The Gross Operating Revenue in the second quarter of 2010 was R$ 4,009,550, up 2.1% (R$ 82,776) on the same period of the previous year.
The main factors that contributed to this change were:
71
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
· An increase of R$ 20,449 in the electric energy supply billed, as a result of the increase of 5.3% in the amount of energy billed to final consumers and of 2.4% in the average tariffs charged, mainly due to the adjustment to the distributors' tariffs;
· An increase of R$ 57,034 in the regulatory assets and liabilities, mainly due to the effects of recording the regulatory asset resulting from RGEs tariff readjustment (Note 3.b.2) in 2010 and the amortization of the regulatory liability generated by repositioning of the distributors' tariff review in 2009, particularly that of CPFL Piratininga (Note 3.b.1);
· A decrease of R$ 67,268 in the energy supplied, mainly due to the reduction of 10.6% in the quantity of energy supplied and a 12.0% decrease in the average tariff charged.
· An increase of R$ 72.554 in Other Operating Revenue, particularly due to the increase of R$ 65,366 in income from the Tariff for the Use of the Distribution System TUSD for free customers, due to the revival of industrial activity, the effects of the tariff adjustment and the migration of captive clients to the free market.
Ø Quantity of Energy Sold
An increase of 5.3% was recorded in the quantity of energy billed to final consumers in the second quarter of 2010.
The residential, commercial and industrial classes, which account for 85.1% of the energy sold to end users in the quarter and have the highest average tariffs, registered growth of 6.2%, 6.8% and 7.8% respectively, compared with the same quarter of the previous year.
The categories residential and commercial classes benefit from the accumulated effect of the expansion of total payroll and credit availability in recent years and the reduced IPI incentive in effect up to January 31, 2010, which resulted in increased purchases of household electrical goods and a dynamic retail trade. Additionally, higher temperatures than those of the previous year boosted consumption.
The amount sold to the industrial class shows that this category is overcoming the negative effects of the international crisis that affected the industry in our concession area until mid-2009. Resumption of industrial operations was fueled by a series of tax exemptions, which encouraged bringing forward scheduled production to reduce costs. Growth in the second quarter was less than in the first quarter, on account of the withdrawal of these tax incentives.
The quantity of energy supplied fell 10.6%, mainly in the sales to the CCEE as a result of the lower energy balances, and the decrease in CPFL Brasils sales to other concessionaires.
Ø Tariffs
In the second quarter of 2010, the energy supply tariffs applied fell by an average of 2.4%, mainly due to the impacts of the tariff adjustments of the distribution subsidiaries:
72
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Deductions from Operating Revenue
Deductions from Operating Income in the second quarter of 2010 amounted to R$ 1,369,541, an increase of 7.1% (R$ 91,240) in relation to the same quarter of 2009, mainly due to an increase of R$ 33,712 in taxes on revenue (PIS, COFINS and ICMS) and the increase of R$ 43,320 in CCC and CDE charges.
Cost of Electric energy
Cost of Electric Energy in the quarter totaled R$ 1,528,916, a decrease of 6.7% (R$ 109,837) in relation to the same period of the previous year:
Ø Electric energy purchased for Resale
The balance of electric energy purchased for resale was R$ 1,230,627, a decrease of 7.4% (R$ 98,898), mainly due to the 6.5% decrease in the amount of energy bought in the quarter and tariff adjustments.
Ø Tariff for the Use of the Distribution System
The balance of tariff for the Use of the Distribution System was R$ 298,289, falling 3.5% (R$ 10,939) in the second quarter of 2010, basically due to the effects of deferral and amortization of regulatory assets and liabilities, particularly those relating to the activation of thermoelectric power plants in 2008 and energy supply risk, amortized in 2009.
Operating Costs and Expense
Operating costs and expenses in the quarter amounted to R$ 436,401, a decrease of 5.3% (R$ 24,426) compared to the same period of the previous year, mainly due to:
· Private Pension Fund: recorded income of R$ 21,800 in the quarter and expense of R$ 921 in the second quarter of 2009, largely as a result of the nominal earnings expected on the plan assets, based on an Actuarial Report;
· Increase of 18.7% (R$ 17,145) in Outsourced Services as a result of price increases; maintenance expenses relating to the electric system, increase on expenses related to hardware and software due to system changes and telephone services;
· Reduction of 33.9% (R$ 21,228) in Other Expense, due to:
(i) a decrease in Legal, Court and Indemnity expenses (R$ 31,684), explained mainly by CPFL Paulista having reversed R$39,502 from the provision in respect of the discussion involving PIS/COFINS (Note 21), which is offset by the reversal of R$4,850 in 2009 and by the increase in expenses in the period of R$ 2,993;
(ii) an increase in the expense for Allowance for Doubtful Accounts of R$ 6,387 due to the combined effect of expenses posted in the quarter and the recovery of credits in 2009.
73
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Financial Income (Expense)
The net Financial Income (Expense) in the second quarter of 2010 was an expense of R$ 73,988, compared with R$ 93,835 in the same period of 2009, a decrease of 21.2% (R$ 19,847):
Ø The financial income increased R$ 33,424 (45.3%), mainly due to:
· An increase of R$ 16,768 in earnings on short-term financial investments as a result of the higher balance of cash and cash equivalents in the second quarter of 2010;
· A reduction in interest on CVA and Parcel A (R$ 10,296) due to liquidation of the assets balances;
· An increase in monetary and exchange restatement (R$ 22,083), largely due to the effect of R$ 7,994 in respect of restatement of the fund tied to CPFL Paulistas loan in foreign currency and the increase of R$ 10,209 relating to restatement of the regulatory assets generated in RGEs 2010 tariff adjustment.
Ø The financial expense increased R$ 13,986 (8.4%) mainly due to:
· An increase of R$ 22,138 in interest on debt charges mainly due to the increase in indebtedness as a result of the new investments by CPFL Geração;
· A reduction of R$ 13,579 in Other Financial Expense, mainly as a result of RGE recording the fine in respect of the DEC and FEC indicators in the second quarter of 2009.
Social Contribution and Income Tax
Taxes on income in the second quarter of 2010 totaled R$ 214,051, an increase of 30.7% (R$ 50,251) in relation to the same quarter of 2009, mainly as a result of the 32.0% increase in pre-tax income.
Net income and EBITDA
As a result of the above factors, the net income for the quarter was R$ 384,230, 33.0% (R$ 95,262) higher than in the same period of 2009.
The adjusted EBITDA (net income for the quarter, eliminating the effects of the private pension plan, depreciation, amortization, financial income (expense), equity accounting, social contribution and income tax) for the second quarter of 2010 was R$ 793,291, 14.8% (R$ 102,429) higher than the EBITDA for the same period of 2009.
74
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
13.01 INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES
1 - ITEM |
2 - NAME OF SUBSIDIARY/ASSOCIATED COMPANY |
3 - CNPJ (Federal Tax ID) |
4 - CLASSIFICATION |
5 - EQUITY IN CAPITAL OF INVESTEE - %
|
6 - SHAREHOLDERS' EQUITY - % | |
7 - TYPE OF COMPANY |
8 - NUMBER OF SHARES HELD IN CURRENT QUARTER (in units) |
9 - NUMBER OF SHARES HELD IN PREVIOUS QUARTER (in units) | ||||
01 |
COMPANHIA PAULISTA DE FORÇA E LUZ - CPFL |
33.050.196/0001-88 |
PUBLIC SUBSIDIARY |
100.00 |
36.48 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
72,650,091 |
72,650,091 | ||||
02 |
CPFL GERAÇÃO DE ENERGIA S/A |
03.953.509/0001-47 |
PUBLIC SUBSIDIARY |
100.00 |
27.72 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
205,487,715,790 |
205,487,715,790 | ||||
03 |
CPFL COMERCIALIZAÇÃO BRASIL S/A |
04.973.790/0001-42 |
PRIVATE SUBSIDIARY |
100.00 |
2.08 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
2,998,565 |
2,998,565 | ||||
04 |
COMPANHIA PIRATININGA DE FORÇA E LUZ |
04.172.213/0001-51 |
PUBLIC SUBSIDIARY |
100.00 |
10.47 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
53,031,258,896 |
53,031,258,896 | ||||
05 |
RIO GRANDE ENERGIA S/A |
02.016.439/0001-38 |
PUBLIC SUBSIDIARY |
100.00 |
30.51 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
807,168,578 |
807,168,578 | ||||
75
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
14.01 CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES
1 - ITEM |
01 |
2 - ISSUE ORDER NUMBER |
3 |
3 - REGISTRATION NUMBER WITH CVM |
CVM/SRE/DEB/2007/042 |
4 - DATE OF REGISTRATION WITH CVM |
10/25/2007 |
5 - ISSUED SERIES |
UN |
6 - TYPE |
SIMPLE |
7 - NATURE |
PUBLIC |
8 - ISSUE DATE |
09/03/2007 |
9 - DUE DATE |
09/03/2014 |
10 - TYPE OF DEBENTURE |
NO PREFERENCE |
11 - REMUNERATION CONDITIONS PREVAILING |
CDI + 0.45% |
12 - PREMIUM/DISCOUNT |
|
13 - NOMINAL VALUE (Reais) |
10,000.00 |
14 - ISSUED AMOUNT (Thousands of Reais) |
450,000 |
15 - NUMBER OF DEBENTURES ISSUED (UNIT) |
45,000 |
16 - OUTSTANDING DEBENTURES (UNIT) |
45,000 |
17 - TREASURY DEBENTURES (UNIT) |
0 |
18 - REDEEMED DEBENTURES (UNIT) |
0 |
19 - CONVERTED DEBENTURES (UNIT) |
0 |
20 - DEBENTURES TO BE PLACED (UNIT) |
0 |
21 - DATE OF THE LAST RENEGOTIATION |
|
22 - DATE OF NEXT EVENT |
09/03/2012 |
76
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
19.01 CAPITAL EXPENDITURE
(Not reviewed by independent auditors)
Our principal capital expenditure in recent years has been on maintaining and upgrading our distribution network and generation projects. The following table sets forth our capital expenditure for the six month-period ended June 30, 2010, as well as the three years ended December 31, 2009, 2008 and 2007.
In millions of R$ | |||||||
|
Year Ended December 31, | ||||||
6 months |
2009 |
2008 |
2007 | ||||
Distribution |
|||||||
CPFL Paulista |
223 |
344 |
279 |
291 | |||
CPFL Piratininga |
107 |
132 |
123 |
144 | |||
RGE |
99 |
215 |
226 |
221 | |||
CPFL Santa Cruz |
14 |
20 |
18 |
11 | |||
Other |
11 |
34 |
19 |
9 | |||
454 |
745 |
665 |
676 | ||||
Generation |
262 |
570 |
502 |
445 | |||
Commercialization |
38 |
10 |
8 |
9 | |||
Other |
- |
2 |
3 |
2 | |||
|
|
|
| ||||
Total |
754 |
1,327 |
1,178 |
1,132 |
We plan to effect capital expenditure totaling approximately R$ 1,724 million in 2010 and approximately R$ 1,454 million in 2011. Of the total budgeted capital expenditure over this period, R$ 2,018 million is for distribution and R$ 1,160 million is for generation.
77
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
20.01 OTHER IMPORTANT INFORMATION ON THE COMPANY
Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, as June 30, 2010
Shareholders |
Common |
Interest - % | ||
VBC Energia S.A. |
122,948,720 |
25.55 | ||
BB Carteira Livre I FIA |
149,233,727 |
31.02 | ||
Bonaire Participações S.A. |
60,713,511 |
12.62 | ||
BNDES Participações S.A. |
40,526,739 |
8.42 | ||
Board of directors |
112 |
- | ||
Executive officers |
5,624 |
- | ||
Other shareholders |
107,708,697 |
22.39 | ||
Total |
481,137,130 |
100.00 |
Quantity and characteristic of securities held by the Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of June 30, 2010 and 2009: | ||||||||
June 30, 2010 |
June 30, 2009 | |||||||
Shareholders |
Common |
% |
Common |
% | ||||
Controlling shareholders |
333,314,879 |
69.28 |
333,314,881 |
69.45 | ||||
Administrator |
||||||||
Executive officers |
5,624 |
0.00 |
31,152 |
0.01 | ||||
Board of directors |
112 |
0.00 |
3,110 |
0.00 | ||||
Fiscal Council Members |
- |
- |
- |
- | ||||
Other shareholders Free float |
147,816,515 |
30.72 |
146,561,795 |
30.54 | ||||
Total |
481,137,130 |
100.00 |
479,910,938 |
100.00 | ||||
Outstanding shares |
147,816,515 |
30.72 |
146,561,795 |
30.54 |
78
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Shareholders of VBC Energia S/A holding more than 5% of the shares of the same type and class, up to the individuals level, as of June 30, 2010: | |||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
(a) |
Átila Holdings S/A |
1,815,927 |
49.58 |
70,530 |
50.00 |
1,886,457 |
49.59 |
(b) |
Camargo Corrêa Energia S.A. |
1,100,652 |
30.05 |
47,018 |
33.33 |
1,147,670 |
30.17 |
(c) |
Camargo Corrêa S.A. |
581,201 |
15.87 |
23,512 |
16.67 |
604,713 |
15.90 |
Other shareholders |
164,951 |
4.50 |
- |
- |
164,951 |
4.34 | |
Total |
3,662,731 |
100.00 |
141,060 |
100.00 |
3,803,791 |
100.00 | |
(a) |
Átila Holdings S/A |
||||||
Shareholders |
Common Shares |
% |
|||||
(d) |
Construções e Comércio Camargo Corrêa S.A. |
280,767,655 |
38.91 |
||||
Camargo Corrêa S.A |
440,877,607 |
61.09 |
|||||
Total |
721,645,262 |
100.00 |
|||||
(b) |
Camargo Corrêa Energia S.A. |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
(e) |
Camargo Corrêa Investimento em Infra-Estrutura S.A. |
518,860 |
100.00 |
518,854 |
100.00 |
1,037,714 |
100.00 |
Other shareholders |
- |
- |
6 |
- |
6 |
- | |
Total |
518,860 |
100.00 |
518,860 |
100.00 |
1,037,720 |
100.00 | |
(c) |
Camargo Corrêa S.A. |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
(f) |
Participações Morro Vermelho S.A. |
48,941 |
99.99 |
93,099 |
100.00 |
142,040 |
100.00 |
Other shareholders |
5 |
0.01 |
1 |
- |
6 |
- | |
Total |
48,946 |
100.00 |
93,100 |
100.00 |
142,046 |
100.00 | |
(d) |
Contruções e Comércio Camargo Corrêa S.A. |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
(c) |
Camargo Corrêa S.A. |
317,865 |
100.00 |
87,772 |
99.99 |
405,637 |
99.99 |
Other shareholders |
5 |
- |
8 |
0.01 |
13 |
0.01 | |
Total |
317,870 |
100.00 |
87,780 |
100.00 |
405,650 |
100.00 | |
(e) |
Camargo Corrêa Investimento em Infra-Estrutura S.A. |
||||||
Shareholders |
Common Shares |
% |
|||||
(c) |
Camargo Corrêa S.A. |
685,162,736 |
100.00 |
||||
Other shareholders |
6 |
- |
|||||
Total |
685,162,742 |
100.00 |
|||||
(f) |
Participações Morro Vermelho S.A. |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
(g) |
RCABON Empreendimentos e Participações S.A |
750,000 |
33.33 |
- |
- |
750,000 |
11.11 |
(h) |
RCNON Empreendimentos e Participações S.A |
750,000 |
33.33 |
- |
- |
750,000 |
11.11 |
(i) |
RCPODON Empreendimentos e Participações S.A |
750,000 |
33.34 |
- |
- |
750,000 |
11.12 |
(j ) |
RCABPN Empreendimentos e Participações S.A |
- |
- |
1,498,080 |
33.29 |
1,498,080 |
22.19 |
(k) |
RCNPN Empreendimentos e Participações S.A |
- |
- |
1,498,080 |
33.29 |
1,498,080 |
22.19 |
(l) |
RCPODPN Empreendimentos e Participações S.A |
- |
- |
1,498,080 |
33.29 |
1,498,080 |
22.19 |
(m) |
RRRPN Empreendimentos e Participações S.A |
- |
- |
5,760 |
0.13 |
5,760 |
0.09 |
Other shareholders |
0 |
- |
- |
- |
0 |
- | |
Total |
2,250,000 |
100.00 |
4,500,000 |
100.00 |
6,750,000 |
100.00 |
79
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
(g) |
RCABON Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
Rosana Camargo Arruda Botelho |
749,850 |
100.00 |
- |
- |
749,850 |
99.98 | |
Other shareholders |
- |
- |
150 |
100 |
150 |
0.02 | |
Total |
749,850 |
100.00 |
150 |
100.00 |
750,000 |
100.00 | |
(h) |
RCNON Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
Renata de Camargo Nascimento |
749,850 |
100 |
- |
- |
749,850 |
99.98 | |
Other shareholders |
- |
- |
150 |
100 |
150 |
0.02 | |
Total |
749,850 |
100 |
150 |
100 |
750,000 |
100.00 | |
(i) |
RCPODON Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
Preferred shares |
% |
TOTAL |
% | |
Regina de Camargo Pires Oliveira Dias |
749,850 |
100.00 |
- |
- |
749,850 |
99.98 | |
Other shareholders |
- |
- |
150 |
100 |
150 |
0.02 | |
Total |
749,850 |
100.00 |
150 |
100.00 |
750,000 |
100.00 | |
( j ) |
RCABPN Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
|||||
Rosana Camargo Arruda Botelho |
1,499,890 |
99.99 |
|||||
Other shareholders |
110 |
0.01 |
|||||
Total |
1,500,000 |
100.00 |
|||||
(k) |
RCNPN Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
|||||
Renata de Camargo Nascimento |
1,499,890 |
99.99 |
|||||
Other shareholders |
110 |
0.01 |
|||||
Total |
1,500,000 |
100 |
|||||
(l) |
RCPODPN Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
|||||
Regina de Camargo Pires Oliveira Dias |
1,499,850 |
99.99 |
|||||
Other shareholders |
150 |
0.01 |
|||||
Total |
1,500,000 |
100.00 |
|||||
(m) |
RRRPN Empreendimentos e Participações S.A |
||||||
Shareholders |
Common Shares |
% |
|||||
Rosana Camargo Arruda Botelho |
1,980 |
33.33 |
|||||
Renata de Camargo Nascimento |
1,980 |
33.33 |
|||||
Regina de Camargo Pires Oliveira Dias |
1,980 |
33.34 |
|||||
Total |
5,940 |
100.00 |
|||||
Shareholders composition of Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I holding more than 5% of the shares of the same type and class, up to the individuals level, as of June 30, 2010. | |||||||
Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I |
|||||||
Shareholders |
Cotas |
% |
|||||
Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI |
130,163,542 |
100.00 |
|||||
Total |
130,163,542 |
100.00 |
80
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Shareholders of Bonaire Participações S.A. holding more than 5% of the shares of the same type and class, up to the individual level, as of June 30, 2010 | |||
Shareholders |
Common Shares |
% | |
(a) |
Energia São Paulo Fundo de Investimento em Participações |
66,728,872 |
100.00 |
Other shareholders |
6 |
- | |
Total |
66,728,878 |
100.00 | |
(a) |
Energia São Paulo Fundo de Investimento em Participações |
||
Shareholders |
Cotas |
% | |
(b) |
Fundo de Investimento em Cotas de Fundos de Investimento em Participações 114 |
353,528,507 |
44.39 |
Fundação Petrobrás de Seguridade Social - Petros |
181,405,069 |
22.78 | |
Fundação Sabesp de Seguridade Social Sabesprev |
4,823,881 |
0.61 | |
Fundação Sistel de Seguridade Social |
256,722,311 |
32.22 | |
Total |
796,479,768 |
100.00 | |
(b) |
Fundo de Investimento em Cotas de Fundos de Investimento em Participações 114 | ||
Shareholders |
Common Shares |
% | |
Fundação CESP |
353,528,507 |
100.00 | |
Total |
353,528,507 |
100.00 | |
Shareholders of BNDES Participações S.A. holding more than 5% of the shares of the same type and class, up to the individuals level, as of June 30, 2010 | |||
Shareholders |
Common Shares |
% | |
Banco Nacional de Desenv. Econômico e Social ( * ) |
1 |
100.00 | |
Total |
1 |
100.00 | |
( * ) |
State agency Brazilian Federal |
||
The quantity of shares are expressed in units. |
Commitment to arbitrage
The Company is committed to arbitration in the Market Arbitration Chamber, in accordance with the Arbitration Clause in Article 44 of the Companys By-Laws.
81
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Social Report / Six-month period ended in June 2010 and 2009 (*) | ||||||
Company: CPFL ENERGIA S.A. | ||||||
1 - Basis for Calculation |
6 month-period ended June 2010 Value (R$ thousand) |
6 month-period ended June 2009 Value (R$ thousand) | ||||
Net Revenues (NR) |
5,425,073 |
5,034,441 | ||||
Operating Result (OR) |
1,215,996 |
908,776 | ||||
Gross Payroll (GP) |
258,418 |
241,752 | ||||
2 - Internal Social Indicators |
Value (000) |
% of GP |
% of NR |
Value (000) |
% of GP |
% of NR |
Food |
19,799 |
7.66% |
0.36% |
18,870 |
7.81% |
0.37% |
Mandatory payroll taxes |
69,810 |
27.01% |
1.29% |
61,975 |
25.64% |
1.23% |
Private pension plan |
12,399 |
4.80% |
0.23% |
12,132 |
5.02% |
0.24% |
Health |
14,535 |
5.62% |
0.27% |
13,310 |
5.51% |
0.26% |
Occupational safety and health |
1,006 |
0.39% |
0.02% |
917 |
0.38% |
0.02% |
Education |
893 |
0.35% |
0.02% |
930 |
0.38% |
0.02% |
Culture |
0 |
0.00% |
0.00% |
0 |
0.00% |
0.00% |
Trainning and professional development |
4,465 |
1.73% |
0.08% |
1,648 |
0.68% |
0.03% |
Day-care / allowance |
544 |
0.21% |
0.01% |
548 |
0.23% |
0.01% |
Profit / income sharing |
20,532 |
7.95% |
0.38% |
21,560 |
8.92% |
0.43% |
Others |
2,964 |
1.15% |
0.05% |
1,940 |
0.80% |
0.04% |
Total - internal social indicators |
146,948 |
56.86% |
2.71% |
133,830 |
55.36% |
2.66% |
3 - External Social Indicators |
Value (000) |
% of OR |
% of NR |
Value (000) |
% of OR |
% of NR |
Education |
420 |
0.03% |
0.01% |
1,313 |
0.14% |
0.03% |
Culture |
4,408 |
0.36% |
0.08% |
2,039 |
0.22% |
0.04% |
Health and sanitation |
801 |
0.07% |
0.01% |
282 |
0.03% |
0.01% |
Sport |
0 |
0.00% |
0.00% |
115 |
0.01% |
0.00% |
War on hunger and malnutrition |
0 |
0.00% |
0.00% |
0 |
0.00% |
0.00% |
Others |
1,084 |
0.09% |
0.02% |
482 |
0.05% |
0.01% |
Total contributions to society |
6,713 |
0.55% |
0.12% |
4,231 |
0.47% |
0.08% |
Taxes (excluding payroll taxes) |
2,740,622 |
225.38% |
50.52% |
2,423,759 |
266.71% |
48.14% |
Total - external social indicators |
2,747,335 |
225.93% |
50.64% |
2,427,990 |
267.17% |
48.23% |
4 - Environmental Indicators |
Value (000) |
% of OR |
% of NR |
Value (000) |
% of OR |
% of NR |
Investments relalated to company production / operation |
52,923 |
4.35% |
0.98% |
42,168 |
4.64% |
0.84% |
Investments in external programs and/or projects |
34,787 |
2.86% |
0.64% |
26,002 |
2.86% |
0.52% |
Total environmental investments |
87,710 |
7.21% |
1.62% |
68,171 |
7.50% |
1.35% |
Regarding the establishment of "annual targets" to minimize residues, the consumption in production / operation and increase efficiency in the use of natural resources, the company: |
( ) do not have targets ( ) fulfill from 51 to 75% |
( ) do not have targets ( ) fulfill from 51 to 75% | ||||
5 - Staff Indicators |
1st half 2010 |
1st half 2009 | ||||
Nº of employees at the end of period |
7,515 |
7,240 | ||||
Nº of employees hired during the period |
658 |
416 | ||||
Nº of outsourced employees |
NA |
7,203 | ||||
Nº of interns |
230 |
214 | ||||
Nº of employees above 45 years age |
2,081 |
2,007 | ||||
Nº of women working at the company |
1,577 |
1,315 | ||||
% of management position occupied by women |
9.58% |
9.54% | ||||
Nº of Afro-Brazilian employees working at the company |
781 |
701 | ||||
% of management position occupied by Afro-Brazilian employees |
1.30% |
1.69% | ||||
Nº of employees with disabilities |
296 |
296 | ||||
6 - Relevant information regarding the exercise of corporate citizenship |
1st half 2010 |
1st half 2009 | ||||
Ratio of the highest to the lowest compensation at company |
74.49 |
74.85 | ||||
Total number of work-related accidents |
9 |
8 | ||||
Social and environmental projects developed by the company were decided upon by: |
( ) directors |
(X) directors |
( ) all |
( ) directors |
(X) directors |
( ) all |
Health and safety standards at the workplace were decided upon by: |
( ) directors |
( ) all |
(X) all + Cipa |
( ) directors |
( ) all |
(X) all + Cipa |
Regarding the liberty to join a union, the right to a collective negotiation and the internal representation of the employees, the company: |
( ) does not |
( ) follows the |
(X) motivates |
( ) does not |
( ) follows the |
(X) motivates |
The private pension plan contemplates: |
( ) directors |
( ) directors |
(X) all |
( ) directors |
( ) directors |
(X) all |
The profit / income sharing contemplates: |
( ) directors |
( ) directors |
(X) all |
( ) directors |
( ) directors |
(X) all |
In the selection of suppliers, the same ethical standards and social / environmental responsibilities adopted by the company: |
( ) are not |
(X) are |
( ) are |
( ) are not |
(X) are |
( ) are |
Regarding the participation of employees in voluntary work programs, the company: |
( ) does not |
( ) supports |
(X) organizes |
( ) does not |
( ) supports |
(X) organizes |
Total number of customer complaints and criticisms: |
in the company 790,497 |
in Procon 433 |
in the Courts |
in the company |
in Procon |
in the Courts |
% of complaints and criticisms attended to or resolved: |
in the company |
in Procon |
in the Courts |
in the company |
in Procon |
in the Courts |
Total value-added to distribute (R$ 000): |
Six-month-period 2010: 4,219,322 |
Six-month-period 2009: 3,713,767 | ||||
Value-Added Distribution (VAD): |
66% government 6% employees 10% third parties |
68% government 7% employees 10% third parties | ||||
7 - Other Information |
|
|
|
|
|
|
In the financial items were utilized the percentage of stock paticipation. For the other information, as number of employees and legal lawsuits, the informations were available in full numbers. | ||||||
Responsible: Antônio Carlos Bassalo, phone: 55-19-3756-8018, bassalo@cpfl.com.br | ||||||
(*) Information not reviewed by the independent auditors |
82
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
| |||||||||||||||||
CPFL Energia S.A. | |||||||||||||||||
Added Value Statements | |||||||||||||||||
For the periods ended June 30, 2010 and 2009 | |||||||||||||||||
( in thousands of Brazilian Reais ) | |||||||||||||||||
Parent Company |
Consolidated | ||||||||||||||||
2010 |
2009 |
2010 |
2009 | ||||||||||||||
2nd quarter |
1st half |
2nd quarter |
1st half |
2nd quarter |
1st half |
2nd quarter |
1st half | ||||||||||
1 - |
Revenues |
2 |
2 |
83 |
112 |
4,557,671 |
8,971,588 |
4,193,329 |
7,990,415 | ||||||||
1.1 - Operating revenues |
2 |
2 |
- |
- |
4,009,550 |
8,118,357 |
3,926,774 |
7,514,529 | |||||||||
1.2 - Revenues related to the construction of own assets |
- |
- |
83 |
112 |
566,429 |
885,839 |
278,512 |
484,831 | |||||||||
1.3 - Allowance for doubtful accounts |
- |
- |
- |
- |
(18,308) |
(30,081) |
(11,921) |
(8,812) | |||||||||
1.4 - Provision for losses on the realization of regulatory assets |
- |
- |
- |
- |
- |
(2,527) |
(36) |
(133) | |||||||||
2- |
( - ) Inputs |
(5,187) |
(9,060) |
(4,588) |
(7,722) |
(2,383,780) |
(4,668,288) |
(2,232,881) |
(4,180,714) | ||||||||
2.1 - Electricity Purchased for Resale |
- |
- |
- |
- |
(1,698,061) |
(3,509,854) |
(1,809,531) |
(3,404,044) | |||||||||
2.2 - Material |
(24) |
(39) |
(4) |
(12) |
(371,046) |
(537,799) |
(140,278) |
(236,045) | |||||||||
2.3 - Outsourced Services |
(3,778) |
(6,580) |
(1,981) |
(3,822) |
(262,308) |
(485,925) |
(207,680) |
(390,562) | |||||||||
2.4 - Other |
(1,385) |
(2,441) |
(2,603) |
(3,888) |
(51,217) |
(132,508) |
(74,286) |
(147,770) | |||||||||
2.5 - Cost of Service Rendered |
- |
- |
- |
- |
(1,148) |
(2,202) |
(1,106) |
(2,293) | |||||||||
3- |
Gross Added Value (1 + 2) |
(5,185) |
(9,058) |
(4,505) |
(7,610) |
2,173,891 |
4,303,300 |
1,960,448 |
3,809,701 | ||||||||
4- |
Retentions |
(36,914) |
(72,306) |
(37,216) |
(74,433) |
(149,569) |
(297,776) |
(149,777) |
(298,572) | ||||||||
4.1 - Depreciation and Amortization |
(36) |
(66) |
(29) |
(59) |
(103,365) |
(206,885) |
(103,053) |
(205,123) | |||||||||
4.2 - Amortization of intangible assets |
(36,878) |
(72,240) |
(37,187) |
(74,374) |
(46,204) |
(90,891) |
(46,724) |
(93,449) | |||||||||
5- |
Net Added Value Generated (3 + 4) |
(42,099) |
(81,364) |
(41,721) |
(82,043) |
2,024,322 |
4,005,524 |
1,810,671 |
3,511,129 | ||||||||
6- |
Added Value Received in Transfer |
476,027 |
917,406 |
378,512 |
717,886 |
115,835 |
213,815 |
82,436 |
202,637 | ||||||||
6.1 - Financial Income |
15,819 |
28,443 |
9,055 |
17,285 |
118,258 |
218,657 |
85,135 |
207,422 | |||||||||
6.2 - Equity in Subsidiaries |
460,208 |
888,963 |
369,457 |
700,601 |
- |
- |
- |
- | |||||||||
6.3 - Non-Controlling Shareholder's Equity |
- |
- |
- |
- |
(2,423) |
(4,842) |
(2,699) |
(4,785) | |||||||||
7- |
Added Value to be Distributed (5 + 6) |
433,928 |
836,042 |
336,791 |
635,843 |
2,140,157 |
4,219,339 |
1,893,107 |
3,713,766 | ||||||||
8- |
Distribution of Added Value |
||||||||||||||||
8.1 - Personnel and Charges |
834 |
1,566 |
404 |
951 |
120,453 |
237,734 |
141,673 |
262,961 | |||||||||
8.1.1 - Direct Remuneration |
770 |
1,453 |
389 |
852 |
95,082 |
184,756 |
90,619 |
177,047 | |||||||||
8.1.2 - Benefits |
33 |
52 |
12 |
28 |
17,807 |
38,372 |
44,336 |
70,695 | |||||||||
8.1.3 - Government severance indemnity fund for employees - F.G.T.S. |
31 |
61 |
3 |
71 |
7,564 |
14,606 |
6,718 |
15,219 | |||||||||
8.2 - Taxes, Fees and Contributions |
36,251 |
36,256 |
33,486 |
33,421 |
1,419,582 |
2,795,963 |
1,281,123 |
2,501,976 | |||||||||
8.2.1 - Federal |
36,245 |
36,250 |
33,486 |
33,421 |
747,461 |
1,437,891 |
629,359 |
1,233,608 | |||||||||
8.2.2 - State |
- |
- |
- |
- |
671,045 |
1,351,953 |
650,593 |
1,262,495 | |||||||||
8.2.3 - Municipal |
6 |
6 |
- |
- |
1,076 |
6,119 |
1,171 |
5,873 | |||||||||
8.3 - Interest and Rentals |
12,613 |
23,791 |
13,933 |
29,800 |
215,892 |
411,213 |
181,343 |
377,158 | |||||||||
8.3.1 - Interest |
12,588 |
23,744 |
13,903 |
29,731 |
211,989 |
404,340 |
177,832 |
370,566 | |||||||||
8.3.2 - Rental |
25 |
47 |
30 |
69 |
3,903 |
6,873 |
3,511 |
6,592 | |||||||||
8.3.3 - Other |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
8.4 - Interest on capital |
384,230 |
774,429 |
288,968 |
571,671 |
384,230 |
774,429 |
288,968 |
571,671 | |||||||||
8.4.1 - Interest on net equity |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
8.4.2 - Dividends |
384,230 |
774,429 |
288,968 |
571,671 |
384,230 |
774,429 |
288,968 |
571,671 | |||||||||
8.4.3 - Retained profits |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||
433,928 |
836,042 |
336,791 |
635,843 |
2,140,157 |
4,219,339 |
1,893,107 |
3,713,766 |
83
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
21.01 REPORT ON SPECIAL REVIEW-UNQUALIFIED |
Independent auditors review report
To
The Shareholders and Management of
CPFL Energia S.A.
São Paulo - SP
1. We have reviewed the accompanying quarterly financial information of CPFL Energia S.A. (The Company) and consolidated quarterly financial information of the Company and its subsidiaries as of June 30, 2010. The financial information is comprised of the balance sheets, the statements of income, shareholders equity, cash flows and added value, and the footnotes and performance report, which were prepared under the responsibility of the Companys Management
2. The quarterly financial information of the jointly-owned indirect subsidiary Chapecoense Geração S.A. as of June 30, 2010 was reviewed by other independent auditors, who issued an unqualified special review report on July 19, 2010. CPFL Energia S.A. reports its indirect interest in Chapecoense Geração S.A. using the equity method of accounting and consolidates this investment using the proportional consolidation method. As of June 30, 2010, the balance of this investment is R$ 341,200 thousand, and the equity in income of this investment in the net income for this three-month period is a R$15 thousand loss. The quarterly financial information of this indirect investee included in the consolidated quarterly financial information presents proportional assets of R$ 1,275,443 thousand as of June 30, 2010. Our report, in relation to the amounts generated by this indirect investment is based exclusively on the report of the review conducted by the independent auditors of Chapecoense Geração S.A.
3. Our review was conducted in accordance with specific standards established by the IBRACON - Brazilian Institute of Independent Auditors and the Federal Accounting Council (CFC), which consisted mainly of (a) inquiries of and discussions with persons responsible for the accounting, financial and operating areas of the Company and its subsidiaries about the main criteria adopted in preparing the quarterly financial information, and (b) review of the information and subsequent events that have or may have material effects on the financial position and operations of the Company and its subsidiaries.
4. Based on our special review and the review report issued by other independent auditors, we are not aware of any material modifications that should be made to the quarterly financial information mentioned in the first paragraph, for it to be in conformity with accounting practices adopted in Brazil and regulations issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly financial information.
84
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
5. The statements of income, cash flows and shareholders equity, for of the jointly-owned indirect BAESA Energética Barra Grande the three-month period ended June 30, 2009, were reviewed by other independent auditors who issued an unqualified special review report thereon, dated July 21, 2009. Our report for that time does not refer to the amounts and values related to the indirect investment, it is based exclusively on the review report issued by the Independent Auditors of BAESA - Energetica Barra Grande S.A.
6. The statements of income, cash flows and shareholders equity, of the jointly-owned indirect Campos Novos Energia S.A. for the three-month period ended June 30, 2009, were reviewed by other independent auditors who issued a qualified special review report thereon, dated July 21, 2009, due to the fact that the Company used depreciation taxes determined by Ordinance DNAEE 815/1994, for the good of concession, and not considering the limits of the concession. The administration concluded, based on communication received from the regulatory agent, that the adopted treatment should be maintained, using the depreciation taxes, determined by the referred Ordinance. Our report for that time does not refer to the amounts and the values related to the indirect investment, it is based exclusively on the review report issued by the Independent Auditors of Campos Novos Energia S.A.
7. As mentioned in footnote n° 3 (c.6) to the quarterly financial information, as result of the 2009 tariff review established on the concession agreement, the Brazilian Electricity Agency - ANEEL ratified, on a temporary basis, the financial components of the power overcontracted of its direct subsidiaries Companhia Piratininga de Força e Luz and Companhia Paulista de Força e Luz. The possible effects resulting from this final review, if any, will be recorded in the Companys equity and financial position in subsequent periods.
8. As mentioned in footnote n° 2, during 2009, as approved by CVM, several pronouncements, interpretations and technical guidance issued by the Committee for Accounting Pronouncements (CPC) were put into effect for 2010, which changed the accounting practices adopted in Brazil. As authorized by the CVM Resolution 603/09, Companys Management opted to present its Quarterly Financial Information (ITR) using the accounting practices adopted in Brazil up to December 31, 2009, i.e. did not apply these regulatory rules in effect for 2010. As required by the aforementioned CVM Resolution 603/09, the Company disclosed this fact in footnote n° 2 to the ITR. The description of the main changes that may have an impact on the financial statements of the year end and the clarifications for the reasons that preclude the presentation of an estimate of their possible effects on equity and on the result for the period, as required by Resolution, are mentioned in the same note.
Campinas, July 29, 2010
KPMG Auditores Independentes
CRC 2SP014428/O-6
Jarib Brisola Duarte Fogaça
Contador CRC 1SP125991/O-0
85
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
Subsidiary: COMPANHIA PAULISTA DE FORÇA E LUZ - CPFL
The subsidiary Companhia Paulista de Força e Luz - CPFL is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).
86
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
Subsidiary: CPFL GERAÇÃO DE ENERGIA S.A.
The subsidiary CPFL Geração de Energia S.A. is a public company and its Comments on the performance in this quarter (the Company and Consolidated) are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).
87
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
1 - CVM CODE |
2 - COMPANY NAME |
3 - CNPJ (Federal Tax ID) |
01866-0 |
CPFL ENERGIA S.A. |
02.429.144/0001-93 |
SUBSIDIARY / ASSOCIATED
COMPANY NAME |
CPFL COMERCIALIZAÇÃO BRASIL S/A |
1 Code |
2 Description |
3 - 04/01/2010 to 06/30/2010 |
4 - 01/01/2010 to 06/30/2010 |
5 - 04/01/2009 to 06/30/2009 |
6 - 01/01/2009 to 06/30/2009 |
3.01 |
Operating revenues |
455,010 |
839,328 |
512,434 |
922,595 |
3.02 |
Deductions from operating revenues |
(49,038) |
(90,470) |
(70,183) |
(130,888) |
3.02.01 |
ICMS |
(7,668) |
(14,207) |
(24,021) |
(47,897) |
3.02.02 |
PIS |
(7,308) |
(13,466) |
(8,133) |
(14,598) |
3.02.03 |
COFINS |
(33,662) |
(62,031) |
(37,457) |
(67,239) |
3.02.04 |
ISS |
(400) |
(766) |
(572) |
(1,154) |
3.03 |
Net operating revenues |
405,972 |
748,858 |
442,251 |
791,707 |
3.04 |
Cost of sales and/or services |
(334,916) |
(578,380) |
(357,569) |
(639,201) |
3.04.01 |
Electric energy purchased for resale |
(328,006) |
(566,949) |
(351,107) |
(626,023) |
3.04.02 |
Electric energy network usage charges |
- |
(17) |
(4) |
422 |
3.04.03 |
Material |
(29) |
(77) |
(184) |
(386) |
3.04.04 |
Outsourced services |
(6,881) |
(11,337) |
(6,274) |
(13,214) |
3.05 |
Gross operating income |
71,056 |
170,478 |
84,682 |
152,506 |
3.06 |
Operating expenses/income |
(9,530) |
(16,364) |
(5,460) |
(6,243) |
3.06.01 |
Sales and Marketing |
(9,166) |
(15,732) |
(6,608) |
(12,439) |
3.06.02 |
General and administrative |
(790) |
(976) |
(291) |
(1,043) |
3.06.03 |
Financial |
426 |
344 |
1,439 |
7,239 |
3.06.03.01 |
Financial income |
5,396 |
10,253 |
2,582 |
6,940 |
3.06.03.02 |
Financial expenses |
(4,970) |
(9,909) |
(1,143) |
299 |
3.06.03.02.01 |
Financial expenses |
(4,862) |
(9,801) |
(1,143) |
299 |
3.06.03.02.02 |
Interest on shareholders' equity |
(108) |
(108) |
- |
- |
88
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
3.06.04 |
Other operating income |
- |
- |
- |
- |
3.06.05 |
Other operating expense |
- |
- |
- |
- |
3.06.06 |
Equity in subsidiaries |
- |
- |
- |
- |
3.07 |
Income from operations |
61,526 |
154,114 |
79,222 |
146,263 |
3.08 |
Nonoperating income (expense) |
- |
- |
- |
- |
3.08.01 |
Income |
- |
- |
- |
- |
3.08.02 |
Expenses |
- |
- |
- |
- |
3.09 |
Income before taxes on income and noncontrolling interest |
61,526 |
154,114 |
79,222 |
146,263 |
3.10 |
Income tax and social contribution |
(21,132) |
(51,921) |
(24,631) |
(43,650) |
3.10.01 |
Social contribution |
(5,635) |
(13,800) |
(6,588) |
(11,688) |
3.10.02 |
Income tax |
(15,497) |
(38,121) |
(18,043) |
(31,962) |
3.11 |
Deferred income tax and social contribution |
866 |
1,174 |
(180) |
(1,670) |
3.11.01 |
Social contribution |
229 |
311 |
(47) |
(442) |
3.11.02 |
Income tax |
637 |
863 |
(133) |
(1,228) |
3.12 |
Statutory profit sharing/contributions |
- |
- |
- |
- |
3.12.01 |
Profit sharing |
- |
- |
- |
- |
3.12.02 |
Contributions |
- |
- |
- |
- |
3.13 |
Reversal of interest on shareholders equity |
108 |
108 |
- |
- |
3.15 |
Net income (loss) for the period |
41,368 |
103,475 |
54,411 |
100,943 |
|
SHARES OUTSTANDING EX-TREASURY STOCK (in units) |
2,998,565 |
2,998,565 |
2,998,565 |
2,998,565 |
|
EARNINGS PER SHARE (Reais) |
13.79593 |
34.50817 |
18.14568 |
33.66377 |
|
LOSS PER SHARE (Reais) |
|
|
|
|
89
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
Subsidiary: CPFL COMERCIALIZAÇÃO BRASIL S.A.
Net Operating Revenue
Consolidated Net Operating Revenue for the second quarter of 2010 was R$ 405,972, a decrease of R$ 36,279 (8.2%) in relation to the same quarter of 2009. This decrease is basically explained by the decrease in the parent companys revenue from energy sales, which fell R$ 34,742 impacted by the 110 GWh decrease in volume of energy sales and a 4.7% reduction in the average price.
Net Income and EBITDA
Net income of R$ 41,368 was recorded in the second quarter of 2010, a decrease of R$ 13,043 (24.0%), compared with the same quarter of 2009.
EBITDA (net income before Financial Income (Expense), income tax and social contribution, depreciation and amortization) for the second quarter of 2010 was R$ 41,368, 21.1% lower than the R$ 78,258 recorded in the same quarter of 2009 (information not reviewed by the Independent Auditors).
90
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
Subsidiary: CPFL PIRATININGA DE FORÇA E LUZ
The subsidiary CPFL Piratininga de Força e Luz is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).
91
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
Subsidiary: RIO GRANDE ENERGIA S.A.
The subsidiary Rio Grande Energia S.A. is a public company and its Comments on the performance in this quarter are attached to the Interim Financial Statements as of June 30, 2010, filed with the CVM (Brazilian Securities Commission).
92
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: June 30, 2010
Group |
Table |
Description |
Page |
01 |
01 |
IDENTIFICATION |
1 |
01 |
02 |
HEAD OFFICE |
1 |
01 |
03 |
INVESTOR RELATIONS OFFICER (Company Mailing Address) |
1 |
01 |
04 |
ITR REFERENCE |
1 |
01 |
05 |
CAPITAL STOCK |
2 |
01 |
06 |
COMPANY PROFILE |
2 |
01 |
07 |
COMPANIES NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS |
2 |
01 |
08 |
CASH DIVIDENDS |
2 |
01 |
09 |
SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR |
3 |
01 |
10 |
INVESTOR RELATIONS OFFICER |
3 |
02 |
01 |
BALANCE SHEET ASSETS |
4 |
02 |
02 |
BALANCE SHEET - LIABILITIES |
5 |
03 |
01 |
INCOME STATEMENT |
6 |
04 |
01 |
STATEMENTS OF CASH FLOW |
8 |
05 |
01 |
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM APRIL 01, 2010 TO JUNE 30, 2010 |
9 |
05 |
02 |
STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM JANUARY 01, 2010 TO JUNE 30, 2010 |
11 |
08 |
01 |
CONSOLIDATED BALANCE SHEET - ASSETS |
13 |
08 |
02 |
CONSOLIDATED BALANCE SHEET - LIABILITIES |
14 |
09 |
01 |
CONSOLIDATED INCOME STATEMENT |
15 |
10 |
01 |
CONSOLIDATED STATEMENTS OF CASH FLOW |
16 |
11 |
01 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM APRIL 01, 2010 TO JUNE 30, 2010 |
17 |
11 |
02 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FROM JANUARY 01, 2010 TO JUNE 30, 2010 |
18 |
06 |
01 |
NOTES TO THE INTERIM FINANCE STATEMENTS |
19 |
07 |
01 |
COMMENTS ON PERFORMANCE IN THE QUARTER |
70 |
12 |
01 |
COMMENTS ON CONSOLIDATED PERFORMANCE OF THE QUARTER |
71 |
13 |
01 |
INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES |
75 |
14 |
01 |
CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES |
76 |
19 |
01 |
CAPITAL EXPENDITURES |
77 |
20 |
01 |
OTHER IMPORTANT INFORMATION ON THE COMPANY |
78 |
21 |
01 |
REPORT ON SPECIAL REVIEW-UNQUALIFIED |
84 |
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
86 |
|
|
COMPANHIA PAULISTA DE FORÇA E LUZ CPFL |
|
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
87 |
|
|
CPFL GERAÇÃO DE ENERGIA S.A. |
|
22 |
01 |
INCOME STATEMENT OF SUBSIDIARIES |
88 |
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
90 |
|
|
CPFL COMERCIALIZAÇÃO BRASIL S.A. |
|
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
91 |
|
|
COMPANHIA PIRATININGA DE FORÇA E LUZ |
|
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
92 |
|
|
RIO GRANDE ENERGIA S.A. |
|
CPFL ENERGIA S.A. | ||
|
By: |
/S/ WILSON P. FERREIRA JÚNIOR
|
Name: Title: |
Wilson P. Ferreira Júnior
Chief Financial Officer and Head of Investor Relations |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.