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: September 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 3756-8707 |
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 |
3 |
07.01.2010 |
09.30.2010 |
4 |
01.01.2009 |
12.31.2009 |
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: September 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 09/30/2010 |
2 PREVIOUS QUARTER 12/31/2009 |
3 SAME QUARTER PREVIOUS YEAR 09/30/2009 |
Paid-in Capital | |||
1 – Common |
481,137,130 |
481,137,130 |
479,910,938 |
2 – Preferred |
0 |
0 |
0 |
3 – Total |
481,137,130 |
481,137,130 |
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 |
02 |
RCA |
08/11/2010 |
Dividend |
09/30/2010 |
ON |
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: September 30, 2010
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: September 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 – 09/30/2010 |
4 – 12/31/2009 |
1 |
Total assets |
6,684,795 |
6,841,525 |
1.01 |
Current assets |
559,059 |
507,356 |
1.01.01 |
Cash and cash equivalents |
4,181 |
219,126 |
1.01.02 |
Credits |
552,202 |
285,587 |
1.01.02.01 |
Accounts receivable |
0 |
0 |
1.01.02.02 |
Other receivables |
552,202 |
285,587 |
1.01.02.02.01 |
Dividends and interest on shareholders’ equity |
475,648 |
201,772 |
1.01.02.02.02 |
Financial investments |
40,837 |
39,253 |
1.01.02.02.03 |
Recoverable taxes |
35,715 |
44,310 |
1.01.02.02.04 |
Derivatives |
2 |
252 |
1.01.03 |
Materials and supplies |
0 |
0 |
1.01.04 |
Other |
2,676 |
2,643 |
1.02 |
Noncurrent assets |
6,125,736 |
6,334,169 |
1.02.01 |
Long-term assets |
337,775 |
327,471 |
1.02.01.01 |
Other receivables |
231,153 |
250,975 |
1.02.01.01.01 |
Financial investments |
45,148 |
62,179 |
1.02.01.01.02 |
Recoverable taxes |
2,787 |
2,787 |
1.02.01.01.03 |
Deferred taxes |
172,775 |
176,199 |
1.02.01.01.04 |
Escrow deposits |
10,443 |
9,810 |
1.02.01.02 |
Related parties |
65,215 |
25,102 |
1.02.01.02.01 |
Associated companies |
0 |
0 |
1.02.01.02.02 |
Subsidiaries |
65,215 |
25,102 |
1.02.01.02.03 |
Other related parties |
0 |
0 |
1.02.01.03 |
Other |
41,407 |
51,394 |
1.02.02 |
Permanent assets |
5,787,961 |
6,006,698 |
1.02.02.01 |
Investments |
5,785,497 |
6,006,277 |
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 |
0 |
0 |
1.02.02.01.04 |
Permanent equity interests - goodwill |
0 |
0 |
1.02.02.01.05 |
Other investments |
0 |
0 |
1.02.02.01.06 |
Permanent equity interests – negative goodwill |
0 |
0 |
1.02.02.02 |
Property, plant and equipment |
166 |
1 |
1.02.02.03 |
Intangible assets |
2,298 |
420 |
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: September 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 – 09/30/2010 |
4 – 12/31/2009 |
2 |
Total liabilities |
6,684,795 |
6,841,525 |
2.01 |
Current liabilities |
33,279 |
40,149 |
2.01.01 |
Loans and financing |
0 |
0 |
2.01.02 |
Debentures |
3,401 |
12,788 |
2.01.02.01 |
Interest on debentures |
3,401 |
12,788 |
2.01.03 |
Suppliers |
1,510 |
2,658 |
2.01.04 |
Taxes and social contributions payable |
(913) |
102 |
2.01.05 |
Dividends |
19,910 |
17,036 |
2.01.06 |
Reserves |
0 |
0 |
2.01.07 |
Related parties |
0 |
0 |
2.01.08 |
Other |
9,371 |
7,565 |
2.01.08.01 |
Accrued liabilities |
198 |
78 |
2.01.08.02 |
Derivatives |
78 |
0 |
2.01.08.03 |
Other |
9,095 |
7,487 |
2.02 |
Noncurrent liabilities |
534,800 |
532,028 |
2.02.01 |
Long-term liabilities |
534,800 |
532,028 |
2.02.01.01 |
Loans and financing |
0 |
0 |
2.02.01.02 |
Debentures |
450,000 |
450,000 |
2.02.01.03 |
Reserves |
10,438 |
9,800 |
2.02.01.03.01 |
Reserve for contingencies |
10,438 |
9,800 |
2.02.01.04 |
Related parties |
0 |
0 |
2.02.01.05 |
Advance for future capital increase |
0 |
0 |
2.02.01.06 |
Other |
74,362 |
72,228 |
2.02.01.06.01 |
Derivatives |
412 |
1,056 |
2.02.01.06.02 |
Other |
73,950 |
71,172 |
2.03 |
Deferred income |
0 |
0 |
2.05 |
Shareholders’ equity |
6,116,716 |
6,269,348 |
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 |
996,768 |
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 |
655,017 |
2.05.04.07.01 |
Additional proposed dividend |
0 |
655,017 |
2.05.05 |
Equity valuation adjustments |
785,351 |
765,667 |
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 |
196,174 |
(234,278) |
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: September 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 - 07/01/2010 to 09/30/2010 |
4 - 01/01/2010 to 09/30/2010 |
3 - 07/01/2009 to 09/30/2009 |
4 - 01/01/2009 to 09/30/2009 |
3.01 |
Gross operating revenues |
0 |
0 |
0 |
0 |
3.02 |
Deductions |
890 |
892 |
3 |
3 |
3.03 |
Net operating revenues |
890 |
892 |
3 |
3 |
3.04 |
Cost of sales and/or services |
0 |
0 |
0 |
0 |
3.05 |
Gross operating income |
890 |
892 |
3 |
3 |
3.06 |
Operating income (expense) |
341,104 |
1,203,218 |
447,095 |
1,144,607 |
3.06.01 |
Selling |
0 |
0 |
0 |
0 |
3.06.02 |
General and administrative |
(6,340) |
(17,361) |
(4,018) |
(11,901) |
3.06.03 |
Financial |
79 |
(12,465) |
550 |
(21,837) |
3.06.03.01 |
Financial income |
21,072 |
43,550 |
14,483 |
26,687 |
3.06.03.02 |
Financial expense |
(20,993) |
(56,015) |
(13,933) |
(48,524) |
3.06.04 |
Other operating income |
0 |
0 |
0 |
0 |
3.06.05 |
Other operating expense |
(36,255) |
(108,496) |
(37,427) |
(112,898) |
3.06.05.01 |
Amortization of intangible asset of concession |
(36,255) |
(108,496) |
(37,187) |
(111,561) |
3.06.05.02 |
Operating expense |
0 |
0 |
(240) |
(1,337) |
3.06.06 |
Equity in subsidiaries |
383,620 |
1,341,540 |
487,990 |
1,291,243 |
3.07 |
Operating income |
341,994 |
1,204,110 |
447,098 |
1,144,610 |
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: September 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 - 07/01/2010 to 09/30/2010 |
4 - 01/01/2010 to 09/30/2010 |
3 - 07/01/2009 to 09/30/2009 |
4 - 01/01/2009 to 09/30/2009 |
3.09 |
Income before taxes on income and profit sharing |
341,994 |
1,204,110 |
447,098 |
1,144,610 |
3.10 |
Income tax and social contribution |
296 |
(18,509) |
1,013 |
(17,568) |
3.10.01 |
Social Contribuition |
(203) |
(14,647) |
361 |
(14,522) |
3.10.02 |
Income Tax |
499 |
(3,862) |
652 |
(3,046) |
3.11 |
Deferred income tax |
1,858 |
(3,426) |
655 |
(4,249) |
3.11.01 |
Deferred social contribution |
658 |
(501) |
242 |
(1,370) |
3.11.02 |
Deferred income tax |
1,200 |
(2,925) |
413 |
(2,879) |
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 |
0 |
0 |
3.15 |
Net income |
344,148 |
1,182,175 |
448,766 |
1,122,793 |
|
SHARES OUTSTANDING EX-TREASURY STOCK (in units) |
481,137,130 |
481,137,130 |
479,910,938 |
479,910,938 |
|
NET INCOME PER SHARE (Reais) |
0.71528 |
2.45704 |
0.93510 |
2.33959 |
|
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: September 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 - 07/01/2010 to 09/30/2010 |
4 - 01/01/2010 to 09/30/2010 |
5 - 07/01/2009 to 09/30/2009 |
6 - 01/01/2009 to 09/30/2009 |
4.01 |
Net cash from operating activities |
735,136 |
1,216,905 |
614,181 |
1,132,937 |
4.01.01 |
Cash generated from operations |
1,961 |
(12,767) |
(5,661) |
(7,443) |
4.01.01.01 |
Net income, including income tax and social contribution |
341,994 |
1,204,111 |
447,098 |
1,144,610 |
4.01.01.02 |
Depreciation and amortization |
36,294 |
108,600 |
37,217 |
111,650 |
4.01.01.03 |
Reserve for contingencies |
5 |
5 |
(9,607) |
(160) |
4.01.01.04 |
Interest and monetary and exchange restatement |
7,288 |
16,057 |
7,377 |
26,360 |
4.01.01.05 |
Equity in subsidiaries |
(383,620) |
(1,341,540) |
(487,990) |
(1,291,243) |
4.01.01.06 |
Loss on the noncurrent assets disposal |
0 |
0 |
244 |
1,340 |
4.01.02 |
Variation on assets and liabilities |
733,175 |
1,229,672 |
619,842 |
1,140,380 |
4.01.02.01 |
Dividend and interest on shareholders’ equity received |
754,785 |
1,254,799 |
645,950 |
1,197,718 |
4.01.02.02 |
Recoverable taxes |
25,550 |
23,406 |
15,592 |
13,386 |
4.01.02.03 |
Escrow deposits |
(240) |
(633) |
160 |
158 |
4.01.02.04 |
Other operating assets |
499 |
217 |
(939) |
(786) |
4.01.02.05 |
Suppliers |
(80) |
(1,148) |
802 |
746 |
4.01.02.06 |
Income taxes and social contributions |
(18,790) |
(18,790) |
(18,580) |
(18,580) |
4.01.02.07 |
Other taxes and social contributions |
(9,887) |
(734) |
1,017 |
1,050 |
4.01.02.08 |
Interest on debts - paid |
(22,756) |
(42,154) |
(23,181) |
(52,998) |
4.01.02.09 |
Other operating liabilities |
4,094 |
14,709 |
(979) |
(314) |
4.01.03 |
Other |
0 |
0 |
0 |
0 |
4.02 |
Net cash in investing activities |
(30,674) |
(8,057) |
(4,313) |
71,183 |
4.02.01 |
Decrease of capital in subsidiaries |
0 |
0 |
0 |
60,236 |
4.02.02 |
Acquisition of property, plant and equipment |
0 |
(169) |
0 |
0 |
4.02.03 |
Financial investments |
11,264 |
32,503 |
9,259 |
29,325 |
4.02.04 |
Acquisition of intangible assets – other |
0 |
0 |
(39) |
(151) |
4.02.05 |
Sale of noncurrent assets |
0 |
(45) |
0 |
0 |
4.02.06 |
Advances for future capital increase |
(210) |
(305) |
(35) |
(135) |
4.02.07 |
Intercompany loans with subsidiaries and associated companies |
(41,727) |
(40,113) |
4,594 |
0 |
4.02.08 |
Other |
(1) |
72 |
(18,092) |
(18,092) |
4.03 |
Net cash in financing activities |
(771,253) |
(1,423,793) |
(569,227) |
(1,173,006) |
4.03.01 |
Payment of loans, financing and debentures (principal), net of derivatives |
0 |
(198) |
69 |
(170) |
4.03.02 |
Dividend and interest on shareholders’ equity paid |
(771,253) |
(1,423,595) |
(569,296) |
(1,172,836) |
4.04 |
Exchange variation on cash and cash equivalents |
0 |
0 |
0 |
0 |
4.05 |
Increase (decrease) in cash and cash equivalents |
(66,791) |
(214,945) |
40,641 |
31,114 |
4.05.01 |
Cash and cash equivalents at beginning of period |
70,972 |
219,126 |
6,175 |
15,702 |
4.05.02 |
Cash and cash equivalents at end of period |
4,181 |
4,181 |
46,816 |
46,816 |
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: September 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 |
4,793,424 |
16 |
0 |
1,116,180 |
(154,622) |
781,185 |
6,536,183 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,793,424 |
16 |
0 |
1,116,180 |
(154,622) |
781,185 |
6,536,183 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
344,148 |
0 |
344,148 |
5.05 |
Distribution |
0 |
0 |
0 |
(774,429) |
0 |
0 |
(774,429) |
5.05.01 |
Dividend |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.02 |
Interest on shareholders’ equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.03 |
Other distributions |
0 |
0 |
0 |
(774,429) |
0 |
0 |
(774,429) |
5.05.03.01 |
Approval of dividend proposal |
0 |
0 |
0 |
(774,429) |
0 |
0 |
(774,429) |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
6,648 |
4,166 |
10,814 |
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 |
5.07.04 |
Equity on Comprehensive income of subsidiaries |
0 |
0 |
0 |
0 |
6,648 |
4,166 |
10,814 |
5.08 |
Increase/Decrease on capital |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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 |
0 |
0 |
0 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
196,174 |
785,351 |
6,116,716 |
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: September 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 |
996,768 |
(234,278) |
765,667 |
6,269,348 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
0 |
996,768 |
(234,278) |
765,667 |
6,269,348 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
1,182,175 |
0 |
1,182,175 |
5.05 |
Distribution |
0 |
0 |
0 |
(655,017) |
(771,452) |
0 |
(1,426,469) |
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 |
(655,017) |
2,977 |
0 |
(652,040) |
5.05.03.01 |
Approval of dividend proposal |
0 |
0 |
0 |
(655,017) |
0 |
0 |
(655,017) |
5.05.03.02 |
Additional dividen proposed |
0 |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
19,729 |
19,684 |
39,413 |
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 |
5.07.04 |
Equity on Comprehensive income of subsidiaries |
0 |
0 |
0 |
0 |
19,729 |
19,684 |
39,413 |
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 |
0 |
0 |
0 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
196,174 |
785,351 |
6,116,716 |
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: September 30, 2010
1 - Code |
2 – Description |
3 – 09/30/2010 |
4 – 12/31/2009 |
1 |
Total assets |
19,236,437 |
18,490,759 |
1.01 |
Current assets |
3,507,940 |
3,649,296 |
1.01.01 |
Cash and cash equivalents |
1,140,304 |
1,487,243 |
1.01.02 |
Credits |
2,117,314 |
1,988,133 |
1.01.02.01 |
Accounts receivable |
1,893,347 |
1,752,858 |
1.01.02.01.01 |
Consumers, concessionaires and licensees |
1,893,347 |
1,752,858 |
1.01.02.02 |
Other credits |
223,967 |
235,275 |
1.01.02.02.01 |
Financial investments |
40,837 |
39,253 |
1.01.02.02.02 |
Recoverable taxes |
178,749 |
192,278 |
1.01.02.02.03 |
Derivatives |
361 |
795 |
1.01.02.02.04 |
Leases |
4,020 |
2,949 |
1.01.03 |
Materials and supplies |
22,158 |
17,360 |
1.01.04 |
Other |
228,164 |
156,560 |
1.02 |
Noncurrent assets |
15,728,497 |
14,841,463 |
1.02.01 |
Long-term assets |
3,708,420 |
3,565,323 |
1.02.01.01 |
Other credits |
3,426,125 |
3,328,294 |
1.02.01.01.01 |
Consumers, concessionaires and licensees |
180,586 |
224,887 |
1.02.01.01.02 |
Financial investments |
87,453 |
79,835 |
1.02.01.01.03 |
Recoverable taxes |
135,986 |
113,235 |
1.02.01.01.04 |
Deferred taxes |
1,182,177 |
1,286,805 |
1.02.01.01.05 |
Escrow deposits |
862,071 |
794,177 |
1.02.01.01.06 |
Derivatives |
159 |
7,881 |
1.02.01.01.07 |
Leases |
23,830 |
21,243 |
1.02.01.01.08 |
Financial asset of concession |
825,466 |
674,029 |
1.02.01.01.09 |
Private pension plan |
11,743 |
9,725 |
1.02.01.01.10 |
Investment at cost |
116,654 |
116,477 |
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 |
282,295 |
237,029 |
1.02.02 |
Permanent assets |
12,020,077 |
11,276,140 |
1.02.02.01 |
Investments |
0 |
0 |
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 |
0 |
0 |
1.02.02.01.06 |
Permanent equity interests – negative goodwill |
0 |
0 |
1.02.02.02 |
Property, plant and equipment |
5,603,183 |
5,213,039 |
1.02.02.03 |
Intangible assets |
6,416,894 |
6,063,101 |
1.02.02.04 |
Deferred charges |
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: September 30, 2010
08.02 – CONSOLIDATED BALANCE SHEET – LIABILITIES AND SHAREHOLDRES’ EQUITY (in thousands of Brazilian reais – R$)
1 - Code |
2 – Description |
3 – 09/30/2010 |
4 – 12/31/2009 |
2 |
Total liabilities |
19,236,437 |
18,490,759 |
2.01 |
Current liabilities |
4,418,999 |
3,422,933 |
2.01.01 |
Loans and financing |
611,752 |
756,576 |
2.01.01.01 |
Accrued interest on debts |
56,379 |
27,662 |
2.01.01.02 |
Loans and financing |
555,373 |
728,914 |
2.01.02 |
Debentures |
1,425,777 |
600,309 |
2.01.02.01 |
Accrued interest on debentures |
114,639 |
101,284 |
2.01.02.02 |
Debentures |
1,311,138 |
499,025 |
2.01.03 |
Suppliers |
1,176,989 |
1,021,452 |
2.01.04 |
Taxes and social contributions payable |
524,968 |
498,610 |
2.01.05 |
Dividends and interest on equity |
23,076 |
25,284 |
2.01.06 |
Reserves |
0 |
0 |
2.01.07 |
Related parties |
0 |
0 |
2.01.08 |
Other |
656,437 |
520,702 |
2.01.08.01 |
Private pension plan |
43,801 |
44,484 |
2.01.08.02 |
Regulatory charges |
119,130 |
63,750 |
2.01.08.03 |
Accrued liabilities |
72,093 |
50,898 |
2.01.08.04 |
Derivatives |
3,372 |
7,012 |
2.01.08.05 |
Other |
401,298 |
338,861 |
2.01.08.06 |
Public utilities |
16,743 |
15,697 |
2.02 |
Noncurrent liabilities |
8,445,676 |
8,531,047 |
2.02.01 |
Long-Term liabilities |
8,445,676 |
8,531,047 |
2.02.01.01 |
Loans and financing |
4,632,705 |
3,791,469 |
2.02.01.01.01 |
Accrued Interest on debts |
17,938 |
62,427 |
2.02.01.01.02 |
Loans and financing |
4,614,767 |
3,729,042 |
2.02.01.02 |
Debentures |
2,020,542 |
2,751,169 |
2.02.01.03 |
Reserves |
289,017 |
300,644 |
2.02.01.03.01 |
Reserve for contingencies |
289,017 |
300,644 |
2.02.01.04 |
Related parties |
0 |
0 |
2.02.01.05 |
Advance for future capital increase |
0 |
0 |
2.02.01.06 |
Other |
1,503,412 |
1,687,765 |
2.02.01.06.01 |
Suppliers |
10,664 |
42,655 |
2.02.01.06.02 |
Provate pension plan |
605,759 |
723,286 |
2.02.01.06.03 |
Taxes and social contributions payable |
1,139 |
1,639 |
2.02.01.06.04 |
Deferred tax debts |
280,233 |
282,010 |
2.02.01.06.05 |
Derivatives |
1,433 |
5,694 |
2.02.01.06.06 |
Other |
183,859 |
226,644 |
2.02.01.06.07 |
Public utilities |
420,325 |
405,837 |
2.03 |
Deferred revenue |
0 |
0 |
2.04 |
Noncontrolling shareholders’ interest |
255,046 |
267,431 |
2.05 |
Shareholders’ equity |
6,116,716 |
6,269,348 |
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 |
996,768 |
2.05.04.01 |
Legal |
341,751 |
341,751 |
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 |
0 |
0 |
2.05.04.06 |
Special reserve for undistributed dividends |
0 |
0 |
2.05.04.07 |
Other revenue reserves |
0 |
655,017 |
2.05.04.07.01 |
Additional proposed dividend |
0 |
655,017 |
2.05.05 |
Equity valuation adjustments |
785,351 |
765,667 |
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 |
196,174 |
(234,278) |
2.05.07 |
Advance for future capital increase |
0 |
0 |
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: September 30, 2010
1 – Code |
2 - Description |
3 - 07/01/2010 to 09/30/2010 |
4 - 01/01/2010 to 09/30/2010 |
5 - 07/01/2009 to 09/30/2009 |
6 - 01/01/2009 to 09/30/2009 |
3.01 |
Operating revenues |
4,494,484 |
12,965,301 |
4,243,993 |
12,101,072 |
3.02 |
Deductions from operating revenues |
(1,395,609) |
(4,120,142) |
(1,319,402) |
(3,738,314) |
3.03 |
Net operating revenues |
3,098,875 |
8,845,159 |
2,924,591 |
8,362,758 |
3.04 |
Cost of electric energy services |
(2,219,647) |
(6,037,651) |
(1,934,174) |
(5,721,022) |
3.04.01 |
Electric energy purchased for resale |
(1,379,348) |
(3,723,117) |
(1,248,052) |
(3,745,321) |
3.04.02 |
Electric energy network usage charges |
(286,430) |
(859,443) |
(264,311) |
(781,832) |
3.04.03 |
Personnel |
(87,585) |
(261,260) |
(79,675) |
(246,799) |
3.04.04 |
Employee pension plans |
21,800 |
65,405 |
(900) |
(2,702) |
3.04.05 |
Material |
(16,797) |
(45,952) |
(14,624) |
(40,958) |
3.04.06 |
Outsourced services |
(48,597) |
(131,698) |
(39,803) |
(116,611) |
3.04.07 |
Depreciation and amortization |
(111,586) |
(332,540) |
(110,705) |
(334,213) |
3.04.08 |
Other |
(13,510) |
(45,552) |
(14,519) |
(37,957) |
3.04.09 |
Cost of services rendered to third parties |
(295,403) |
(698,867) |
(160,216) |
(410,678) |
3.04.10 |
Costs related to infrastructure construction |
(2,191) |
(4,627) |
(1,369) |
(3,951) |
3.05 |
Gross operating income |
879,228 |
2,807,508 |
990,417 |
2,641,736 |
3.06 |
Operating income (expense) |
(330,329) |
(938,957) |
(285,370) |
(859,815) |
3.06.01 |
Sales and marketing |
(67,573) |
(211,431) |
(67,043) |
(182,850) |
3.06.02 |
General and administrative |
(133,312) |
(323,520) |
(99,907) |
(296,086) |
3.06.03 |
Financial income (expense) |
(73,100) |
(239,231) |
(66,860) |
(218,152) |
3.06.03.01 |
Financial income |
129,825 |
332,117 |
78,376 |
252,772 |
3.06.03.02 |
Financial expenses |
(202,925) |
(571,348) |
(145,236) |
(470,924) |
3.06.04 |
Other operating income |
0 |
0 |
0 |
0 |
3.06.05 |
Other operating expenses |
(56,344) |
(164,775) |
(51,560) |
(162,727) |
3.06.05.01 |
Amortization of intangible asset of concession |
(46,511) |
(139,240) |
(47,645) |
(142,932) |
3.06.05.02 |
Other operating expense |
(9,833) |
(25,535) |
(3,915) |
(19,795) |
3.06.06 |
Equity in subsidiaries |
0 |
0 |
0 |
0 |
3.07 |
Operating income |
548,899 |
1,868,551 |
705,047 |
1,781,921 |
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 |
548,899 |
1,686,551 |
705,047 |
1,781,921 |
3.10 |
Income tax and social contribution |
(203,679) |
(592,636) |
(101,790) |
(361,082) |
3.10.01 |
Social contribution |
(53,610) |
(156,746) |
(28,528) |
(97,676) |
3.10.02 |
Income tax |
(150,069) |
(435,890) |
(73,262) |
(263,406) |
3.11 |
Deferred income tax and social contribution |
5,561 |
(77,501) |
(145,573) |
(275,961) |
3.11.01 |
Social contribution |
969 |
(21,570) |
(38,502) |
(72,491) |
3.11.02 |
Income tax |
4,592 |
(55,931) |
(107,071) |
(203,470) |
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 |
0 |
0 |
3.14 |
Noncontrolling shareholders’ interest |
(6,633) |
(16,238) |
(8,918) |
(22,085) |
3.15 |
Net income |
344,148 |
1,182,176 |
448,766 |
1,122,793 |
|
SHARES OUTSTANDING EX-TREASURY STOCK (units) |
481,137,130 |
481,137,130 |
479,910,938 |
479,910,938 |
|
NET INCOME PER SHARE (Reais) |
0.71528 |
2.45705 |
0.93510 |
2.33959 |
|
LOSS PER SHARE (Reais) |
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
1 - Code |
2 - Description |
3 – 07/01/2010 to 09/30/2010 |
4 – 01/01/2010 to 09/30/2010 |
5 – 07/01/2009 to 09/30/2009 |
6 – 01/01/2009 to 09/30/2009 |
4.01 |
Net cash from operating activities |
538,062 |
1,694,474 |
710,374 |
1,614,558 |
4.01.01 |
Cash generated from operations |
862,664 |
2,584,137 |
978,576 |
2,713,082 |
4.01.01.01 |
Net income, including income tax and social contribution |
548,899 |
1,868,551 |
705,047 |
1,781,921 |
4.01.01.02 |
Depreciation and amortization |
167,493 |
498,291 |
167,254 |
504,228 |
4.01.01.03 |
Reserve for contingencies |
16,307 |
(143,233) |
(9,216) |
(4,058) |
4.01.01.04 |
Interest and monetary and exchange restatement |
158,466 |
413,900 |
153,985 |
435,599 |
4.01.01.05 |
(Gain) / Loss on pension plan |
(21,800) |
(65,405) |
900 |
2,734 |
4.01.01.06 |
Losses on disposal of noncurrent assets |
(1,998) |
1,946 |
(415) |
11,440 |
4.01.01.07 |
Deferred taxes - PIS and COFINS |
(5,936) |
5,407 |
(52,650) |
(32,041) |
4.01.01.08 |
Other |
1,233 |
4,680 |
13,671 |
13,259 |
4.01.02 |
Variation on assets and liabilities |
(324,602) |
(889,663) |
(268,202) |
(1,098,524) |
4.01.02.01 |
Consumers, Concessionaires and Licensees |
(57,741) |
(96,188) |
(2,231) |
(131,411) |
4.01.02.02 |
Recoverable Taxes |
32,757 |
5,588 |
(39,872) |
(40,015) |
4.01.02.03 |
Escrow deposits |
(2,320) |
(29,782) |
(6,381) |
(10,882) |
4.01.02.04 |
Other operating assets |
(48,146) |
(115,776) |
(9,817) |
(5,340) |
4.01.02.05 |
Suppliers |
87,344 |
123,546 |
(39,008) |
(63,160) |
4.01.02.06 |
Taxes and social contributions paid |
(189,519) |
(531,006) |
(100,571) |
(406,354) |
4.01.02.07 |
Other taxes and social contributions |
(10,009) |
(44,798) |
26,669 |
19,745 |
4.01.02.08 |
Employee Pension Plans |
(14,818) |
(52,115) |
(19,478) |
(55,022) |
4.01.02.09 |
Interest paid on debt |
(150,809) |
(393,976) |
(166,237) |
(438,600) |
4.01.02.10 |
Regulatory Charges |
8,770 |
55,380 |
21,817 |
(199) |
4.01.02.11 |
Other operating liabilities |
19,889 |
189,464 |
66,907 |
32,714 |
4.01.03 |
Other |
0 |
0 |
0 |
0 |
4.02 |
Net cash in investing activities |
(510,838) |
(1,212,750) |
(307,873) |
(809,163) |
4.02.01 |
Acquisition of Interest in subsidiaries |
(59) |
(176) |
(81) |
(214) |
4.02.02 |
Addition to property, plant and equipment |
(166,489) |
(447,636) |
(124,111) |
(389,590) |
4.02.03 |
Financial investments |
(35,107) |
(17,361) |
7,996 |
54,190 |
4.02.04 |
Acquisition of intangible assets – other |
(335,408) |
(776,342) |
(192,352) |
(462,756) |
4.02.05 |
Sale of noncurrent assets |
7,209 |
11,925 |
10,800 |
18,256 |
4.02.06 |
Other |
19,016 |
16,840 |
(10,125) |
(29,049) |
4.03 |
Net cash in financing activities |
(264,369) |
(828,663) |
(456,169) |
(869,008) |
4.03.01 |
Loans, financing and debentures obtained |
786,499 |
1,586,602 |
1,144,330 |
2,050,351 |
4.03.02 |
Payments of Loans, financing and debentures , net of derivatives |
(259,883) |
(975,167) |
(1,003,240) |
(1,734,881) |
4.03.03 |
Dividend and interest on shareholders’ equity paid |
(790,985) |
(1,440,098) |
(597,259) |
(1,184,478) |
4.04 |
Exchange variation on cash and cash equivalents |
0 |
0 |
0 |
0 |
4.05 |
Increase (decrease) in cash and cash equivalents |
(237,145) |
(346,939) |
(53,668) |
(63,613) |
4.05.01 |
Cash and cash equivalents at beginning of period |
1,377,449 |
1,487,243 |
748,509 |
758,454 |
4.05.02 |
Cash and cash equivalents at end of period |
1,140,304 |
1,140,304 |
694,841 |
694,841 |
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: September 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 |
4,793,424 |
16 |
0 |
1,116,180 |
(154,622) |
781,185 |
6,536,183 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,793,424 |
16 |
0 |
1,116,180 |
(154,622) |
781,185 |
6,536,183 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
344,148 |
0 |
344,148 |
5.05 |
Distribution |
0 |
0 |
0 |
(774,429) |
0 |
0 |
(774,429) |
5.05.01 |
Dividend |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.02 |
Interest on shareholders’ equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05.03 |
Other distributions |
0 |
0 |
0 |
(774,429) |
0 |
0 |
(774,429) |
5.05.03.01 |
Approval of dividend proposal |
0 |
0 |
0 |
(774,429) |
0 |
0 |
(774,429) |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
6,648 |
4,166 |
10,814 |
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 |
5.07.04 |
Adjustment of financial instruments |
0 |
0 |
0 |
0 |
110 |
16,275 |
16,385 |
5.07.05 |
Tax on adjustments of financial instruments |
0 |
0 |
0 |
0 |
0 |
(5,571) |
(5,571) |
5.07.06 |
Realization of revaluation reserve |
0 |
0 |
0 |
0 |
9,906 |
(9,906) |
0 |
5.07.07 |
Tax on adjustments of financial instruments |
0 |
0 |
0 |
0 |
(3,368) |
3,368 |
0 |
5.08 |
Increase/Decrease on capital |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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 |
0 |
0 |
0 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
196,174 |
785,351 |
6,116,716 |
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: September 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 |
996,768 |
(234,278) |
765,667 |
6,269,348 |
5.02 |
Prior year adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
0 |
996,768 |
(234,278) |
765,667 |
6,269,348 |
5.04 |
Net income / Loss for the period |
0 |
0 |
0 |
0 |
1,182,175 |
0 |
1,182,175 |
5.05 |
Distribution |
0 |
0 |
0 |
(655,017) |
(771,452) |
0 |
(1,426,469) |
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 |
(655,017) |
2,977 |
0 |
(652,040) |
5.05.03.01 |
Approval of dividend proposal |
0 |
0 |
0 |
(655,017) |
0 |
0 |
(655,017) |
5.05.03.02 |
Additional dividen proposed |
0 |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.06 |
Realization of profit reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Equity valuation adjustments |
0 |
0 |
0 |
0 |
19,729 |
19,684 |
39,413 |
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 |
5.07.04 |
Adjustment of financial instruments |
0 |
0 |
0 |
0 |
148 |
59,585 |
59,733 |
5.07.05 |
Tax on adjustments of financial instruments |
0 |
0 |
0 |
0 |
0 |
(20,320) |
(20,320) |
5.07.06 |
Realization of revaluation reserve |
0 |
0 |
0 |
0 |
29,673 |
(29,673) |
0 |
5.07.07 |
Tax on realization of revaluation reserve |
0 |
0 |
0 |
0 |
(10,092) |
10,092 |
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 |
0 |
0 |
0 |
5.13 |
Final balance |
4,793,424 |
16 |
0 |
341,751 |
196,174 |
785,351 |
6,116,716 |
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: September 30, 2010
| |||||||||
CPFL Energia S.A. | |||||||||
Balance Sheets as of September 30, 2010 and December 31, 2009 | |||||||||
(in thousands of Brazilian Reais) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
Consolidated |
| ||||||
|
ASSETS |
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 |
| |||
|
| ||||||||
|
CURRENT ASSETS |
| |||||||
|
Cash and Banks (note 6) |
4,181 |
219,126 |
1,140,304 |
1,487,243 |
| |||
|
Consumers, Concessionaires and Licensees (note 7) |
- |
- |
1,893,347 |
1,752,858 |
| |||
|
Dividends and Interest on Equity (note 13.2) |
475,648 |
201,772 |
- |
- |
| |||
|
Financial Investments (note 8) |
40,837 |
39,253 |
40,837 |
39,253 |
| |||
|
Recoverable Taxes (note 9) |
35,715 |
44,310 |
178,749 |
192,278 |
| |||
|
Derivatives (note 31) |
2 |
252 |
361 |
795 |
| |||
|
Materials and Supplies |
- |
- |
22,158 |
17,360 |
| |||
|
Leases |
- |
- |
4,020 |
2,949 |
| |||
|
Other credits (note 12) |
2,676 |
2,643 |
228,164 |
156,560 |
| |||
|
TOTAL CURRENT ASSETS |
559,059 |
507,356 |
3,507,940 |
3,649,296 |
| |||
|
| ||||||||
|
NONCURRENT ASSETS |
| |||||||
|
| ||||||||
|
Consumers, Concessionaires and Licensees (note 7) |
- |
- |
180,586 |
224,887 |
| |||
|
Due from Related Parties |
65,215 |
25,102 |
- |
- |
| |||
|
Escrow Deposits (note 22) |
10,443 |
9,810 |
862,071 |
794,177 |
| |||
|
Financial Investments (note 8) |
45,148 |
62,179 |
87,453 |
79,835 |
| |||
|
Recoverable Taxes (note 9) |
2,787 |
2,787 |
135,986 |
113,235 |
| |||
|
Derivatives (nota 31) |
- |
- |
159 |
7,881 |
| |||
|
Tax Credits (note 10) |
172,775 |
176,199 |
1,182,177 |
1,286,805 |
| |||
|
Leases |
- |
- |
23,830 |
21,243 |
| |||
|
Financial asset of concession (note 11) |
- |
- |
825,466 |
674,029 |
| |||
|
Private pension plan (note 20) |
- |
- |
11,743 |
9,725 |
| |||
|
Investment at cost |
- |
- |
116,654 |
116,477 |
| |||
|
Other Credits (note 12) |
41,407 |
51,394 |
282,295 |
237,029 |
| |||
|
Investments (note 13) |
5,785,497 |
6,006,277 |
- |
- |
| |||
|
Property, Plant and Equipment (note 14) |
166 |
1 |
5,603,183 |
5,213,039 |
| |||
|
Intangible assets (note 15) |
2,298 |
420 |
6,416,894 |
6,063,101 |
| |||
|
TOTAL NONCURRENT ASSETS |
6,125,736 |
6,334,169 |
15,728,497 |
14,841,463 |
| |||
|
| ||||||||
|
TOTAL ASSETS |
6,684,795 |
6,841,525 |
19,236,437 |
18,490,759 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
|
| |||||||||
|
Balance Sheets as of September 30, 2010 and December 31, 2009 | |||||||||
|
(in thousands of Brazilian Reais) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
Consolidated |
| |||||
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
September 30, 2010 |
|
December 31, 2009 |
|
September 30, 2010 |
|
December 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Suppliers (note 18) |
1,510 |
|
2,658 |
|
1,176,989 |
|
1,021,452 |
|
|
|
Accrued Interest on Debts (note 16) |
- |
|
- |
|
56,379 |
|
27,662 |
|
|
|
Accrued Interest on Debentures (note 17) |
3,401 |
|
12,788 |
|
114,639 |
|
101,284 |
|
|
|
Loans and Financing (note 16) |
- |
|
- |
|
555,373 |
|
728,914 |
|
|
|
Debentures (note 17) |
- |
|
- |
|
1,311,138 |
|
499,025 |
|
|
|
Private Pension Plan (note 20) |
- |
|
- |
|
43,801 |
|
44,484 |
|
|
|
Regulatory Charges (note 21) |
- |
|
- |
|
119,130 |
|
63,750 |
|
|
|
Taxes and Social Contributions Payable (note 19) |
(913) |
|
102 |
|
524,968 |
|
498,610 |
|
|
|
Dividends and Interest on Equity |
19,910 |
|
17,036 |
|
23,076 |
|
25,284 |
|
|
|
Accrued liabilities |
198 |
|
78 |
|
72,093 |
|
50,898 |
|
|
|
Derivatives (note 31) |
78 |
|
- |
|
3,372 |
|
7,012 |
|
|
|
Public Utilities (note 23) |
- |
|
- |
|
16,743 |
|
15,697 |
|
|
|
Other (note 24) |
9,095 |
|
7,487 |
|
401,298 |
|
338,861 |
|
|
|
TOTAL CURRENT LIABILITIES |
33,279 |
|
40,149 |
|
4,418,999 |
|
3,422,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Suppliers (note 18) |
- |
|
- |
|
10,664 |
|
42,655 |
|
|
|
Accrued Interest on Debts (note 16) |
- |
|
- |
|
17,938 |
|
62,427 |
|
|
|
Loans and Financing (note 16) |
- |
|
- |
|
4,614,767 |
|
3,729,042 |
|
|
|
Debentures (note 17) |
450,000 |
|
450,000 |
|
2,020,542 |
|
2,751,169 |
|
|
|
Private Pension Plan (note 20) |
- |
|
- |
|
605,759 |
|
723,286 |
|
|
|
Taxes and Social Contributions Payable (note 19) |
- |
|
- |
|
1,139 |
|
1,639 |
|
|
|
Deferred tax debits (note 10) |
- |
|
- |
|
280,233 |
|
282,010 |
|
|
|
Reserve for contingencies (note 22) |
10,438 |
|
9,800 |
|
289,017 |
|
300,644 |
|
|
|
Derivatives (note 31) |
412 |
|
1,056 |
|
1,433 |
|
5,694 |
|
|
|
Public Utilities (note 23) |
- |
|
- |
|
420,325 |
|
405,837 |
|
|
|
Other (note 24) |
73,950 |
|
71,172 |
|
183,859 |
|
226,644 |
|
|
|
TOTAL NONCURRENT LIABILITIES |
534,800 |
|
532,028 |
|
8,445,676 |
|
8,531,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY (note 25) |
|
|
|
|
|
|
|
|
|
|
Capital |
4,793,424 |
|
4,741,175 |
|
4,793,424 |
|
4,741,175 |
|
|
|
Capital Reserves |
16 |
|
16 |
|
16 |
|
16 |
|
|
|
Profit Reserves |
341,751 |
|
341,751 |
|
341,751 |
|
341,751 |
|
|
|
Additional dividend proposed |
- |
|
655,017 |
|
- |
|
655,017 |
|
|
|
Revaluation Reserve |
785,351 |
|
765,667 |
|
785,351 |
|
765,667 |
|
|
|
Retained earnings |
196,174 |
|
(234,278) |
|
196,174 |
|
(234,278) |
|
|
|
|
6,116,716 |
|
6,269,348 |
|
6,116,716 |
|
6,269,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net equity attributable to controlling shareholders |
6,116,716 |
|
6,269,348 |
|
6,116,716 |
|
6,269,348 |
|
|
|
Net equity attributable to noncontrolling shareholders |
|
|
- |
|
255,046 |
|
267,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
6,116,716 |
|
6,269,348 |
|
6,371,762 |
|
6,536,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
6,684,795 |
|
6,841,525 |
|
19,236,437 |
|
18,490,759 |
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
|
| ||||||||||||||||
Statement of income for the periods ended in September 30, 2010 and 2009 |
| ||||||||||||||||
(in thousands of Brazilian Reais) |
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
Consolidated |
| ||||||||||||||
|
2010 |
2009 |
2010 |
2009 |
| ||||||||||||
|
3rd quarter |
Nine month |
3rd quarter |
Nine month |
3rd quarter |
Nine month |
3rd quarter |
Nine month |
| ||||||||
|
| ||||||||||||||||
|
NET OPERATING REVENUE (note 26) |
890 |
892 |
3 |
3 |
3,098,875 |
8,845,159 |
2,924,591 |
8,362,758 |
| |||||||
|
| ||||||||||||||||
|
COST OF ELECTRIC ENERGY SERVICES |
| |||||||||||||||
|
Cost of Electric Energy (note 27) |
- |
- |
- |
- |
(1,665,778) |
(4,582,560) |
(1,512,363) |
(4,527,153) |
| |||||||
|
Operating Cost (note 28) |
- |
- |
- |
- |
(256,275) |
(751,597) |
(260,226) |
(779,240) |
| |||||||
|
Services Rendered to Third Parties (note 28) |
- |
- |
- |
- |
(297,594) |
(703,494) |
(161,585) |
(414,629) |
| |||||||
|
| ||||||||||||||||
|
GROSS OPERATING INCOME |
890 |
892 |
3 |
3 |
879,228 |
2,807,508 |
990,417 |
2,641,736 |
| |||||||
|
| ||||||||||||||||
|
Operating expenses (note 28) |
| |||||||||||||||
|
Sales expenses |
- |
- |
- |
- |
(67,573) |
(211,431) |
(67,043) |
(182,850) |
| |||||||
|
General and Administrative expenses |
(6,339) |
(17,361) |
(4,018) |
(11,901) |
(133,312) |
(323,520) |
(99,907) |
(296,086) |
| |||||||
|
Other Operating Expense |
(36,255) |
(108,495) |
(37,431) |
(112,901) |
(56,344) |
(164,775) |
(51,560) |
(162,727) |
| |||||||
|
(42,594) |
(125,856) |
(41,449) |
(124,802) |
(257,229) |
(699,726) |
(218,510) |
(641,663) |
| ||||||||
|
| ||||||||||||||||
|
INCOME FROM ELECTRIC ENERGY SERVICE |
(41,704) |
(124,964) |
(41,446) |
(124,799) |
621,999 |
2,107,782 |
771,907 |
2,000,073 |
| |||||||
|
| ||||||||||||||||
|
Equity in subsidiaries (note 13) |
383,620 |
1,341,540 |
487,990 |
1,291,243 |
- |
- |
- |
- |
| |||||||
|
| ||||||||||||||||
|
FINANCIAL INCOME (EXPENSE) (note 29) |
| |||||||||||||||
|
Income |
21,072 |
43,550 |
14,483 |
26,687 |
129,825 |
332,117 |
78,376 |
252,772 |
| |||||||
|
Expense |
(20,994) |
(56,015) |
(13,929) |
(48,521) |
(202,925) |
(571,348) |
(145,236) |
(470,924) |
| |||||||
|
78 |
(12,465) |
554 |
(21,834) |
(73,100) |
(239,231) |
(66,860) |
(218,152) |
| ||||||||
|
| ||||||||||||||||
|
INCOME BEFORE TAXES |
341,994 |
1,204,111 |
447,098 |
1,144,610 |
548,899 |
1,868,551 |
705,047 |
1,781,921 |
| |||||||
|
| ||||||||||||||||
|
Social contribution (note 10) |
1,157 |
(4,363) |
894 |
(4,416) |
(52,641) |
(178,316) |
(67,030) |
(170,167) |
| |||||||
|
Income tax (note 10) |
997 |
(17,572) |
774 |
(17,401) |
(145,477) |
(491,821) |
(180,333) |
(466,876) |
| |||||||
|
2,154 |
(21,935) |
1,668 |
(21,817) |
(198,118) |
(670,137) |
(247,363) |
(637,043) |
| ||||||||
|
| ||||||||||||||||
|
NET INCOME |
344,148 |
1,182,176 |
448,766 |
1,122,793 |
350,781 |
1,198,414 |
457,684 |
1,144,878 |
| |||||||
|
| ||||||||||||||||
|
Net income attributable to controlling shareholders |
344,148 |
1,182,176 |
448,766 |
1,122,793 |
| |||||||||||
|
Net income attributable to noncontrolling shareholders |
6,633 |
16,238 |
8,918 |
22,085 |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
| |||||||||||||||||||||
Statement of changes in shareholders' equity for the period ended in September 30, 2010 | |||||||||||||||||||||
(in thousands of Brazilian Reais) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive |
| |||||||||||||||||||
|
Additional |
income |
Noncontrolling |
Total |
| ||||||||||||||||
|
Capital |
Capital |
Legal |
dividend |
Deemed |
Financial |
Retained earnings |
Total |
shareholders' |
Shareholders' |
| ||||||||||
|
|
Reserevs |
reserve |
proposed |
cost |
instruments |
|
interest |
equity |
| |||||||||||
Balance at December 31, 2009 |
4,741,175 |
16 |
341,751 |
655,017 |
635,871 |
129,796 |
(234,278) |
6,269,348 |
267,431 |
6,536,779 |
| ||||||||||
|
| ||||||||||||||||||||
Capital increase |
52,249 |
- |
- |
- |
- |
- |
- |
52,249 |
- |
52,249 |
| ||||||||||
Net income for the period |
- |
- |
- |
- |
- |
- |
1,182,175 |
1,182,175 |
16,239 |
1,198,414 |
| ||||||||||
Prescribed dividend |
- |
- |
- |
- |
- |
- |
2,977 |
2,977 |
- |
2,977 |
| ||||||||||
Approval of dividend proposal |
- |
- |
- |
(655,017) |
- |
- |
- |
(655,017) |
- |
(655,017) |
| ||||||||||
|
| ||||||||||||||||||||
Changes in Other Comprehensive Income: |
| ||||||||||||||||||||
- Gain (Loss) in financial instruments |
- |
- |
- |
- |
- |
59,764 |
- |
59,764 |
(3,733) |
56,031 |
| ||||||||||
- Tax on financial instruments |
- |
- |
- |
- |
- |
(20,320) |
- |
(20,320) |
1,270 |
(19,050) |
| ||||||||||
- Realization of financial instruments |
- |
- |
- |
- |
- |
(179) |
148 |
(31) |
- |
(31) |
| ||||||||||
- Realization of deemed cost of fixed assets |
- |
- |
- |
- |
(29,673) |
- |
29,673 |
- |
- |
- |
| ||||||||||
- Tax on deemed cost realization |
- |
- |
- |
- |
10,092 |
- |
(10,092) |
- |
- |
- |
| ||||||||||
|
| ||||||||||||||||||||
Allocation of income: |
| ||||||||||||||||||||
- Interim Dividend |
- |
- |
- |
- |
- |
- |
(774,429) |
(774,429) |
(6,181) |
(780,610) |
| ||||||||||
Other changes in noncontrolling shareholders |
- |
- |
- |
- |
- |
- |
- |
- |
(19,980) |
(19,980) |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Balance at September 30, 2010 |
4,793,424 |
16 |
341,751 |
- |
616,290 |
169,061 |
196,174 |
6,116,716 |
255,046 |
6,371,762 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Statement of changes in shareholders' equity for the period ended in September 30, 2009 | |||||||||||||||||||||
(in thousands of Brazilian Reais) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive |
| |||||||||||||||||||
|
Additional |
income |
Noncontrolling |
Total |
| ||||||||||||||||
|
Capital |
Capital |
Legal |
dividend |
Deemed |
Financial |
Retained earnings |
Total |
shareholders' |
Shareholders' |
| ||||||||||
|
|
Reserevs |
reserve |
proposed |
cost |
instruments |
|
interest |
equity |
| |||||||||||
Balance at January 1, 2009 |
4,741,175 |
16 |
277,428 |
606,105 |
661,975 |
137,895 |
(631,911) |
5,792,683 |
258,163 |
6,050,846 |
| ||||||||||
|
| ||||||||||||||||||||
Capital increase |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
| ||||||||||
Net income for the period |
- |
- |
- |
- |
- |
- |
1,122,793 |
1,122,793 |
22,085 |
1,144,878 |
| ||||||||||
Prescribed dividend |
- |
- |
- |
- |
- |
- |
4,541 |
4,541 |
- |
4,541 |
| ||||||||||
Approval of dividend proposal |
- |
- |
- |
(1,177,776) |
- |
- |
- |
(1,177,776) |
(14,244) |
(1,192,020) |
| ||||||||||
|
| ||||||||||||||||||||
Changes in Other Comprehensive Income: |
| ||||||||||||||||||||
- Gain (Loss) in financial instruments |
- |
- |
- |
- |
- |
(9,507) |
- |
(9,507) |
(133) |
(9,640) |
| ||||||||||
- Tax on financial instruments |
- |
- |
- |
- |
- |
3,232 |
- |
3,232 |
46 |
3,278 |
| ||||||||||
- Realization of financial instruments |
- |
- |
- |
- |
- |
(384) |
384 |
- |
- |
- |
| ||||||||||
- Realization of deemed cost of fixed assets |
- |
- |
- |
- |
(29,660) |
- |
29,660 |
- |
- |
- |
| ||||||||||
- Tax on deemed cost realization |
- |
- |
- |
- |
10,085 |
- |
(10,085) |
- |
- |
- |
| ||||||||||
|
| ||||||||||||||||||||
Allocation of income: |
| ||||||||||||||||||||
- Interim Dividend |
- |
- |
- |
571,671 |
- |
- |
(571,671) |
- |
(6,161) |
(6,161) |
| ||||||||||
Other changes in noncontrolling shareholders |
- |
- |
- |
- |
- |
- |
- |
- |
848 |
848 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Balance at September 30, 2009 |
4,741,175 |
16 |
277,428 |
- |
642,400 |
131,236 |
(56,289) |
5,735,966 |
260,604 |
5,996,570 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
|
||||||||||||||||||
Statements of Cash Flow for the periods ended in September 30, 2010 and 2009 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent Company |
Consolidated |
| |||||||||||||||
|
2010 |
2009 |
2010 |
2009 |
| |||||||||||||
|
3rd quarter |
Nine month |
3rd quarter |
Nine month |
3rd quarter |
Nine month |
3rd quarter |
Nine month |
| |||||||||
|
| |||||||||||||||||
|
OPERATING CASH FLOW |
| ||||||||||||||||
|
Income (Loss) for the period, including income tax and social contribution |
341,994 |
1,204,111 |
447,098 |
1,144,610 |
548,899 |
1,868,551 |
705,047 |
1,781,921 |
| ||||||||
|
ADJUSTMENTS TO RECONCILE NET INCOME TO CASH DERIVED FROM OPERATIONS |
| ||||||||||||||||
|
Depreciation and amortization |
36,294 |
108,600 |
37,217 |
111,650 |
167,493 |
498,291 |
167,254 |
504,228 |
| ||||||||
|
Reserve for contingencies |
5 |
5 |
(9,607) |
(160) |
16,307 |
(143,233) |
(9,216) |
(4,058) |
| ||||||||
|
Interest and monetary restatement |
7,288 |
16,057 |
7,377 |
26,360 |
158,466 |
413,900 |
153,985 |
435,599 |
| ||||||||
|
Pension plan costs |
- |
- |
- |
- |
(21,800) |
(65,405) |
900 |
2,734 |
| ||||||||
|
Equity in subsidiaries |
(383,620) |
(1,341,540) |
(487,990) |
(1,291,243) |
- |
- |
- |
- |
| ||||||||
|
Losses on the write-off of noncurrent assets |
- |
- |
244 |
1,340 |
(1,998) |
1,946 |
(415) |
11,440 |
| ||||||||
|
Deferred taxes (PIS and COFINS) - assets and liabilities |
- |
- |
- |
- |
(5,936) |
5,407 |
(52,650) |
(32,041) |
| ||||||||
|
Other |
- |
- |
- |
- |
1,233 |
4,680 |
13,671 |
13,259 |
| ||||||||
|
| |||||||||||||||||
|
REDUCTION (INCREASE) IN OPERATING ASSETS |
| ||||||||||||||||
|
Consumers, concessionaires and licensees |
- |
- |
- |
- |
(57,741) |
(96,188) |
(2,231) |
(131,411) |
| ||||||||
|
Dividend and interest on equity received |
754,785 |
1,254,799 |
645,950 |
1,197,718 |
- |
- |
- |
- |
| ||||||||
|
Recoverable taxes |
25,550 |
23,406 |
15,592 |
13,386 |
32,757 |
5,588 |
(39,872) |
(40,015) |
| ||||||||
|
Escrow deposits |
(240) |
(633) |
160 |
158 |
(2,320) |
(29,782) |
(6,381) |
(10,882) |
| ||||||||
|
Other operating assets |
499 |
217 |
(939) |
(786) |
(48,146) |
(115,776) |
(9,817) |
(5,340) |
| ||||||||
|
| |||||||||||||||||
|
INCREASE (DECREASE) IN OPERATING LIABILITIES |
| ||||||||||||||||
|
Suppliers |
(80) |
(1,148) |
802 |
746 |
87,344 |
123,546 |
(39,008) |
(63,160) |
| ||||||||
|
Taxes and social contributions paid |
(18,790) |
(18,790) |
(18,580) |
(18,580) |
(189,519) |
(531,006) |
(100,571) |
(406,354) |
| ||||||||
|
Other taxes and social contributions |
(9,887) |
(734) |
1,017 |
1,050 |
(10,009) |
(44,798) |
26,669 |
19,745 |
| ||||||||
|
Other liabilities with employee pension plans |
- |
- |
- |
- |
(14,818) |
(52,115) |
(19,478) |
(55,022) |
| ||||||||
|
Interest on debts - paid |
(22,756) |
(42,154) |
(23,181) |
(52,998) |
(150,809) |
(393,976) |
(166,237) |
(438,600) |
| ||||||||
|
Regulatory charges |
- |
- |
- |
- |
8,770 |
55,380 |
21,817 |
(199) |
| ||||||||
|
Other operating liabilities |
4,094 |
14,709 |
(979) |
(314) |
19,889 |
189,464 |
66,907 |
32,714 |
| ||||||||
|
CASH FLOWS PROVIDED (USED) BY OPERATIONS |
735,136 |
1,216,905 |
614,181 |
1,132,937 |
538,062 |
1,694,474 |
710,374 |
1,614,558 |
| ||||||||
|
| |||||||||||||||||
|
INVESTMENT ACTIVITIES |
| ||||||||||||||||
|
Increase in investments on subsidiaries |
- |
- |
- |
- |
(59) |
(176) |
(81) |
(214) |
| ||||||||
|
Capital decrease in subsidiaries |
- |
- |
- |
60,236 |
- |
- |
- |
- |
| ||||||||
|
Increase in property, plant and equipment |
- |
(169) |
- |
- |
(166,489) |
(447,636) |
(124,111) |
(389,590) |
| ||||||||
|
Financial investments |
11,264 |
32,503 |
9,259 |
29,325 |
(35,107) |
(17,361) |
7,996 |
54,190 |
| ||||||||
|
Additions to intangible assets |
- |
- |
(39) |
(151) |
(335,408) |
(776,342) |
(192,352) |
(462,756) |
| ||||||||
|
Sale of noncurrent assets |
- |
(45) |
- |
- |
7,209 |
11,925 |
10,800 |
18,256 |
| ||||||||
|
Advances for future capital increase |
(210) |
(305) |
(35) |
(135) |
- |
- |
- |
- |
| ||||||||
|
Intercompany loans with subsidiaries and associated companies |
(41,727) |
(40,113) |
- |
- |
- |
- |
- |
- |
| ||||||||
|
Other |
(1) |
72 |
(13,498) |
(18,092) |
19,016 |
16,840 |
(10,125) |
(29,049) |
| ||||||||
|
|
| ||||||||||||||||
|
GENERATION (UTILIZATION) OF CASH IN INVESTMENTS |
(30,674) |
(8,057) |
(4,313) |
71,183 |
(510,838) |
(1,212,750) |
(307,873) |
(809,163) |
| ||||||||
|
| |||||||||||||||||
|
FINANCING ACTIVITIES |
| ||||||||||||||||
|
Loans, financing and debentures obtained |
- |
- |
- |
- |
786,499 |
1,586,602 |
1,144,330 |
2,050,351 |
| ||||||||
|
Payments of Loans, financing and debentures, net of derivatives |
- |
(198) |
69 |
(170) |
(259,883) |
(975,167) |
(1,003,240) |
(1,734,881) |
| ||||||||
|
Dividend and interest on equity paid |
(771,253) |
(1,423,595) |
(569,296) |
(1,172,836) |
(790,985) |
(1,440,098) |
(597,259) |
(1,184,478) |
| ||||||||
|
| |||||||||||||||||
|
GENERATION (UTILIZATION) OF CASH IN FINANCING |
(771,253) |
(1,423,793) |
(569,227) |
(1,173,006) |
(264,369) |
(828,663) |
(456,169) |
(869,008) |
| ||||||||
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(66,791) |
(214,945) |
40,641 |
31,114 |
(237,145) |
(346,939) |
(53,668) |
(63,613) |
| ||||||||
|
OPENING BALANCE OF CASH AND CASH EQUIVALENTS |
70,972 |
219,126 |
6,175 |
15,702 |
1,377,449 |
1,487,243 |
748,509 |
758,454 |
| ||||||||
|
| |||||||||||||||||
|
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS |
4,181 |
4,181 |
46,816 |
46,816 |
1,140,304 |
1,140,304 |
694,841 |
694,841 |
| ||||||||
|
| |||||||||||||||||
|
SUPPLEMENTARY INFORMATION |
| ||||||||||||||||
|
Incorporation of minority shareholders by means of a share issue (note 13) |
- |
52,249 |
- |
- |
- |
52,249 |
- |
- |
| ||||||||
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
|
|
| ||||||||||||||||
| ||||||||||||||||||
Added Value Statements | ||||||||||||||||||
For the periods ended September 30, 2010 and 2009 | ||||||||||||||||||
|
Parent Company |
Consolidated |
| |||||||||||||||
|
2010 |
2009 |
2010 |
2009 |
| |||||||||||||
|
3rd quarter |
Nine month |
3rd quarter |
Nine month |
3rd quarter |
Nine month |
3rd quarter |
Nine month |
| |||||||||
|
|
|
|
|
|
|
| |||||||||||
|
| |||||||||||||||||
1- Revenues |
980 |
982 |
42 |
154 |
4,931,248 |
14,256,222 |
4,527,052 |
12,863,274 |
| |||||||||
|
1.1 |
Operating revenues |
980 |
982 |
3 |
3 |
4,199,081 |
12,266,434 |
4,083,777 |
11,690,394 |
| |||||||
|
1.2 |
Revenue from infrastructure construction |
- |
- |
- |
- |
295,403 |
698,867 |
160,216 |
410,678 |
| |||||||
|
1.3 |
Revenues related to the construction of own assets |
- |
- |
39 |
151 |
443,880 |
1,330,644 |
295,181 |
783,136 |
| |||||||
|
1.4 |
Allowance for doubtful accounts |
- |
- |
- |
- |
(7,330) |
(37,410) |
(12,122) |
(20,934) |
| |||||||
|
1.5 |
Other |
- |
- |
- |
- |
214 |
(2,313) |
- |
- |
| |||||||
|
| |||||||||||||||||
2 - (-) Inputs |
(5,279) |
(14,340) |
(3,692) |
(11,414) |
(2,786,627) |
(7,611,590) |
(2,301,289) |
(6,665,963) |
| |||||||||
|
2.1 |
Electricity Purchased for Resale |
- |
- |
- |
- |
(1,840,003) |
(5,100,620) |
(1,693,551) |
(5,031,044) |
| |||||||
|
2.2 |
Material |
(7) |
(46) |
(8) |
(20) |
(221,283) |
(760,103) |
(166,397) |
(405,216) |
| |||||||
|
2.3 |
Outsourced Services |
(4,314) |
(10,894) |
(1,248) |
(5,070) |
(609,471) |
(1,500,005) |
(346,737) |
(991,960) |
| |||||||
|
2.4 |
Other |
(958) |
(3,400) |
(2,436) |
(6,324) |
(113,462) |
(246,252) |
(93,405) |
(234,251) |
| |||||||
|
2.5 |
Cost of Service Rendered |
- |
- |
- |
- |
(2,408) |
(4,610) |
(1,199) |
(3,492) |
| |||||||
|
- |
- |
- |
| ||||||||||||||
3 - Gross Added Value (1 + 2) |
(4,299) |
(13,358) |
(3,650) |
(11,260) |
2,144,621 |
6,644,632 |
2,225,763 |
6,197,311 |
| |||||||||
|
| |||||||||||||||||
4 - Retentions |
(36,294) |
(108,600) |
(37,217) |
(111,650) |
(173,462) |
(516,430) |
(174,052) |
(522,472) |
| |||||||||
|
4.1 |
Depreciation and Amortization |
(39) |
(105) |
(30) |
(89) |
(126,951) |
(377,190) |
(126,407) |
(379,540) |
| |||||||
|
4.2 |
Amortization of intangible assets |
(36,255) |
(108,495) |
(37,187) |
(111,561) |
(46,511) |
(139,240) |
(47,645) |
(142,932) |
| |||||||
|
| |||||||||||||||||
5 - Net Added Value Generated (3 + 4) |
(40,593) |
(121,958) |
(40,867) |
(122,910) |
1,971,159 |
6,128,202 |
2,051,711 |
5,674,839 |
| |||||||||
|
| |||||||||||||||||
6 - Added Value Received in Transfer |
404,692 |
1,394,207 |
502,473 |
1,327,377 |
136,900 |
351,676 |
79,846 |
268,536 |
| |||||||||
|
6.1 |
Financial Income |
21,072 |
52,667 |
14,483 |
36,134 |
136,900 |
351,676 |
79,846 |
268,536 |
| |||||||
|
6.2 |
Equity in Subsidiaries |
383,620 |
1,341,540 |
487,990 |
1,291,243 |
- |
- |
- |
- |
| |||||||
|
| |||||||||||||||||
7 - Added Value to be Distributed (5 + 6) |
364,099 |
1,272,249 |
461,606 |
1,204,467 |
2,108,059 |
6,479,878 |
2,131,557 |
5,943,375 |
| |||||||||
|
| |||||||||||||||||
8 - Distribution of Added Value |
|
|
|
| ||||||||||||||
|
8.1 |
Personnel and Charges |
870 |
2,436 |
470 |
1,421 |
124,585 |
362,987 |
132,584 |
399,684 |
| |||||||
|
8.1.1 Direct Remuneration |
804 |
2,257 |
465 |
1,317 |
93,993 |
279,326 |
88,804 |
269,899 |
| ||||||||
|
8.1.2 Benefits |
44 |
96 |
8 |
36 |
22,875 |
61,294 |
36,644 |
107,368 |
| ||||||||
|
8.1.3 Government severance indemnity fund for employees - F.G.T.S. |
22 |
83 |
(3) |
68 |
7,717 |
22,367 |
7,136 |
22,417 |
| ||||||||
|
8.2 |
Taxes, Fees and Contributions |
(1,916) |
31,578 |
(1,589) |
31,680 |
1,417,589 |
4,286,145 |
1,379,525 |
3,884,282 |
| |||||||
|
8.2.1 Federal |
(1,926) |
31,562 |
(1,590) |
31,679 |
732,479 |
2,242,963 |
713,620 |
1,950,009 |
| ||||||||
|
8.2.2 State |
- |
- |
- |
- |
683,942 |
2,035,895 |
664,713 |
1,927,208 |
| ||||||||
|
8.2.3 Municipal |
10 |
16 |
1 |
1 |
1,168 |
7,287 |
1,192 |
7,065 |
| ||||||||
|
8.3 |
Interest and Rentals |
20,997 |
56,059 |
13,959 |
48,573 |
215,104 |
632,332 |
161,764 |
514,531 |
| |||||||
|
8.3.1 Interest |
20,981 |
55,996 |
13,929 |
48,474 |
210,361 |
620,716 |
157,985 |
504,160 |
| ||||||||
|
8.3.2 Rental |
16 |
63 |
30 |
99 |
4,490 |
11,363 |
3,779 |
10,371 |
| ||||||||
|
8.3.3 Other |
- |
- |
- |
- |
253 |
253 |
- |
- |
| ||||||||
|
8.4 |
Interest on capital |
344,148 |
1,182,176 |
448,766 |
1,122,793 |
350,781 |
1,198,414 |
457,684 |
1,144,878 |
| |||||||
|
8.4.1 Dividends (including additional proposed) |
- |
774,429 |
- |
571,671 |
- |
774,429 |
- |
571,671 |
| ||||||||
|
8.4.2 Retained profits |
344,148 |
407,747 |
448,766 |
551,122 |
350,781 |
423,985 |
457,684 |
573,207 |
| ||||||||
|
| |||||||||||||||||
|
364,099 |
1,272,249 |
461,606 |
1,204,467 |
2,108,059 |
6,479,878 |
2,131,557 |
5,943,375 |
| |||||||||
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
( 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’s headquarters are located at Rua Gomes de Carvalho, 1510 - 14º floor - Cj 2 - Vila Olímpia - São Paulo - SP - Brasil.
The Company has direct and indirect interests in the following operational subsidiaries (information on the concession area, number of consumers, energy production capacity and associated data not examined by the independent auditors):
Energy distribution |
Company Type |
Equity Interest |
Location (State) |
Number of municipalities |
Concession term |
End of the concession | ||||||
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Publicly-quoted corporation |
Direct |
Interior of S. Paulo |
234 |
30 years |
November 2027 | ||||||
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-quoted corporation |
Direct |
Interior of S. Paulo |
27 |
30 years |
October 2028 | ||||||
Rio Grande Energia S.A. ("RGE") |
Publicly-quoted corporation |
Direct |
Interior of Rio Grande do Sul |
262 |
30 years |
November 2027 | ||||||
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Private corporation |
Direct |
Interior of São Paulo and Paraná |
27 |
16 years |
July 2015 | ||||||
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Private corporation |
Direct |
Interior of S. Paulo |
7 |
16 years |
July 2015 | ||||||
Companhia Jaguari de Energia ("CPFL Jaguari") |
Private corporation |
Direct |
Interior of S. Paulo |
2 |
16 years |
July 2015 | ||||||
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Private corporation |
Direct |
Interior of S. Paulo |
5 |
16 years |
July 2015 | ||||||
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Private corporation |
Direct |
Interior of São Paulo and Minas Gerais |
4 |
16 years |
July 2015 |
Installed power | ||||||||||||
Energy generation - operational |
Company Type |
Equity Interest |
Location (State) |
Number of plants / type of energy |
Total |
CPFL participation | ||||||
CPFL Geração de Energia S.A. |
Publicly-quoted corporation |
Direct |
São Paulo, Goiás and Minas Gerais |
1 Hydroelectric, 20 PCHs and 1 Thermal* |
812 MW |
812 MW | ||||||
Campos Novos Energia S.A. |
Private corporation |
Indirect |
Santa Catarina |
1 Hydroelectric |
880 MW |
429 MW | ||||||
CERAN - Companhia Energética Rio das Antas |
Private corporation |
Indirect |
Rio Grande do Sul |
3 Hydroelectric |
360 MW |
234 MW | ||||||
BAESA - Energética Barra Grande S.A. |
Publicly-quoted corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
690 MW |
173 MW | ||||||
Centrais Elétricas da Paraíba S.A.- EPASA |
Private corporation |
Indirect |
Paraíba |
2 Thermals |
342 MW |
174 MW | ||||||
Paulista Lajeado Energia S.A. |
Private corporation |
Indirect |
São Paulo |
1 Hydroelectric |
903 MW |
63 MW | ||||||
CPFL Sul Centrais Elétricas Ltda. |
Limited company |
Indirect |
Rio Grande do Sul |
4 Small Hydroelectric Plants (RS) |
2,65 MW |
2,65 MW | ||||||
(*) PCH - Small Hydropower Plant |
||||||||||||
(**) Paulista Lajeado has a 7% participation in the installed power of Investco S.A. |
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: September 30, 2010
Energy generation - under development |
Company Type |
Equity Interest |
Location |
Number of plants / type of energy |
Scheduled start-up date |
Projected installed power | ||||||
Foz do Chapecó Energia S.A. |
Private corporation |
Indirect |
Santa Catarina e |
1 Hydroelectric |
4th quarter |
855 MW | ||||||
CPFL Bioenergia S.A. |
Private corporation |
Indirect |
São Paulo |
1 Thermal |
4th quarter |
45 MW | ||||||
CPFL Bio Formosa S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Thermal |
2011 |
40 MW | ||||||
CPFL Bio Buriti S.A. |
Private corporation |
Indirect |
São Paulo |
1 Thermal |
2011 |
50 MW | ||||||
CPFL Bio Ipê S.A. |
Private corporation |
Indirect |
São Paulo |
1 Thermal |
2011 |
25 MW | ||||||
CPFL Bio Pedra S.A. |
Private corporation |
Indirect |
São Paulo |
1 Thermal |
2012 |
70 MW | ||||||
Santa Clara I Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Santa Clara II Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Santa Clara III Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Santa Clara IV Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Santa Clara V Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Santa Clara VI Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Eurus VI Energias Renováveis Ltda. |
Limited Company |
Indirect |
Rio Grande do Norte |
1 Wind power |
2012 |
30 MW | ||||||
Campo dos Ventos I Energias Renovaveis S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Wind power |
2013 |
30 MW | ||||||
Campo dos Ventos II Energias Renovaveis S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Wind power |
2013 |
30 MW | ||||||
Campo dos Ventos III Energias Renovaveis S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Wind power |
2013 |
30 MW | ||||||
Campo dos Ventos IV Energias Renovaveis S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Wind power |
2013 |
30 MW | ||||||
Campo dos Ventos V Energias Renovaveis S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Wind power |
2013 |
30 MW | ||||||
Eurus V Energias Renovaveis S.A. |
Private corporation |
Indirect |
Rio Grande do Norte |
1 Wind power |
2013 |
30 MW |
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: September 30, 2010
Energy commercialization and services |
Company Type |
Core activity |
Equity Interest | |||
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Private corporation |
Energy commercialization, consultancy and advisory services to agents in the energy sector |
Direct | |||
Clion Assessoria e Comercialização de Energia Elétrica Ltda. |
Limited company |
Commercialization and provision of energy services |
Indirect | |||
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Private corporation |
Energy commercialization |
Indirect | |||
CPFL Planalto Ltda. ("CPFL Planalto") |
Limited company |
Energy commercialization |
Direct | |||
CPFL Serviços, Equipamentos, Industria e Comércio S.A. |
Private corporation |
Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision |
Direct | |||
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Limited company |
Provision of telephone answering services |
Direct | |||
Chumpitaz Serviços S.A. ("Chumpitaz") |
Private corporation |
Provision of administrative services |
Direct | |||
Other |
Company Type |
Core activity |
Equity Interest | |||
CPFL Jaguariuna S.A. ("CPFL Jaguariuna") |
Private corporation |
Venture capital company |
Direct | |||
Companhia Jaguari de Geração de Energia ("Jaguari Geração") |
Private corporation |
Venture capital company |
Direct | |||
Chapecoense Geração S.A. ("Chapecoense") |
Private corporation |
Venture capital company |
Indirect | |||
CPFL Bio Anicuns S.A. |
Private corporation |
Energy generation studies and projects |
Indirect | |||
CPFL Bio Itapaci S.A |
Private corporation |
Energy generation studies and projects |
Indirect | |||
Sul Geradora Participações S.A. ("Sul Geradora") |
Private corporation |
Venture capital company |
Indirect |
Campos dos Ventos I to V and Eurus V
The corporate purpose of the indirect subsidiaries Campos dos Ventos I to V and Euros V is to participate in studies for developing electric energy generation projects using wind power. At the auction of reserve energy held on August 26, 2010, Campos dos Ventos II negotiated a 14 MW supply contract with delivery to begin in 2013, for a period of 20 years.
Chumpitaz Serviços S.A.
The bylaws of the subsidiary, previously called “Chumpitaz Participações S.A.”, were amended during this quarter, changing the name of the company to “Chumpitaz Serviços S.A.”. The corporate purpose was changed to providing services of a technical, administrative, commercial nature, among others.
Bio Itapaci S.A. and Bio Anicuns S.A.
CPFL Bio Itapaci and CPFL Bio Anicuns S.A. are private corporations that were set up for the purpose of developing studies and projects for thermoelectric power generation. CPFL Brasil holds 100% of the share capital of CPFL Bio Itapaci and CPFL Bio Anicuns.
Operational start-up
CPFL Bioenergia
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: September 30, 2010
On August 27, 2010, CPFL Bioenergia started the operations of the CPFL Energia group’s first thermoelectric plant powered by sugarcane bagasse biomass. The investment in the unit, which has installed power of 45 MW and an export capacity of 30 MW, was R$ 103.5 million.
Foz do Chapecó
The first of four generators at the Foz do Chapecó plant started commercial operations on October 15, 2010, reaching the capacity to generate 214 MW of the 855 MW that will be reached when it is fully functional, scheduled for April 2011.
The total investment in the project amounted to approximately R$ 2.6 billion, and the venture’s full capacity is equivalent to around 18% of the consumption of the state of Rio Grande do Sul.
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS
In accordance with CVM Decision 603/2009, amended by CVM Decision 656/2011, the Company opted to re-present the quarterly financial information for 2010 compared to 2009 after publication of the 2010 financial statements. As such, the financial information presented here should be read together with the financial statements for 2010 compared to 2009.
The quarterly financial information presented here shows the figures originally presented, adjusted to reflect the alterations resulting from having applied the accounting pronouncements issued by the Brazilian Committee on Accounting Pronouncements (CPC) and approved by the Brazilian Securities Commission (CVM). Note 5 shows the main adjustments made as a result of having adopted the new accounting practices.
The mainly accounting policies set out on the preparation of these quarterly financial statments are consistent with those adopted in the annual financial statements. These accounting policies have been applied consistently to all periods presented in these individual and consolidated financial statements.
2.1 Basis of preparation
The individual (Parent Company) and consolidated quarterly financial statements were prepared and presented in accordance with generally accepted accounting principles in Brazil, based on the guidelines provided by the Brazilian Committee on Accounting Pronouncements (Comitê de Pronunciamentos Contábeis - CPC) and approved by CVM and are being presented in accordance with “CPC21 Demonstrações Intermediárias”.
The Company also follows the guidelines of the Accounting Manual of the Public Electric Energy and the standards laid down by the National Electric Energy Agency (Agência Nacional de Energia Elétrica – ANEEL), when these are not in conflict with generally accepted accounting practices in Brazil and/or international accounting practices.
The individual quarterly financial statements are in conformity with the International Financial Reporting Standards – IFRS, issued by the International Accounting Standard Board – IASB, except for evaluation of investments in subsidiaries and jointly-owned entities, which are accounted for by the equity method, while for the IFRS they should be accounted for by the cost or fair value method.
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: September 30, 2010
The consolidated quarterly financial statements were also prepared and are presented in full conformity with the IFRS.
Note 5 shows the main differences between the accounting practices adopted previously in Brazil and the current and effective standards presented herein.
2.2 Basis of measurement
The quarterly financial statements have been prepared on the historic cost basis except for the following material items recorded in the balance sheets: i) derivative financial instruments measured at fair value, ii) financial instruments at fair value through profit or loss measured, iii) available-for-sale financial assets are measured at fair value, iv) property, plant and equipment adjusted to reflect the “deemed cost” on the transition date, and v) actuarial assets, recognition of which is limited to the present value of the economic benefits available in the form of reimbursements or future reductions in contributions to the plan.
2.3 Use of estimates and judgments
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
By definition, the resulting accounting estimates are rarely the same as the actual results. Accordingly, Company Management reviews the estimates and assumptions on an ongoing basis. Adjustments derived from revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
Information about assumptions and estimate that are subject to a greater degree of uncertainty and involve the risk of resulting in a material adjustment if these assumptions and estimates suffer significant changes during the next financial year is included in the following notes:
· Note 10 – Deferred tax credits and debits;
· Note 11 – Financial asset of concession;
· Note 15 – Intangible assets;
· Note 20 – Employee Pension Plan;
· Note 22 – Reserve for contingency, and
· Note 31 – Financial instruments and Operating Risks.
2.4 Functional currency and presentation currency
The individual and consolidated financial statements are presented in thousands of Brazilian reais, which is the Company's functional currency.
2.5 Basis of consolidation
(i) Business combinations
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: September 30, 2010
- Acquisitions made after January 1, 2009
In the case of acquisitions made after January 1, 2009, the Company measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date. If the excess is negative, a gain arising from the purchase agreement is recognized immediately in profit or loss for the period.
- Acquisitions prior to January 1, 2009
As part of the transition to the IFRS and CPC the Company opted not to re-present business combinations prior to January 1, 2009. In relation to acquisitions prior to January 1, 2009 the goodwill represents the amount recognized under the accounting practices adopted previously. This goodwill was tested for impairment at the transition date, in accordance with Note 3.6.
(ii) Subsidiaries and jointly-owned entities:
The financial statements of subsidiaries and jointly-owned entities (joint ventures) are included in the consolidated financial statements from the date that total or shared control commences until the date that control ceases.
A jointly controlled operation is a venture directly or indirectly controlled together with other investors, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions.
The accounting policies of subsidiaries and jointly controlled entities taken into consideration in consolidation are aligned with the Company's accounting policies.
The financial information of subsidiaries and jointly controlled entities and of the associates is accounted for using the equity method.
The consolidated financial statements include the balances and transactions of the Company and its subsidiaries. The balances and transactions of assets, liabilities, income and expenses have been fully consolidated for fully owned subsidiaries and proportionately consolidated for the jointly-owned entities.
Intra-group balances and transactions, and any income and expenses derived from these transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
Observing the conditions described above, the amount related to non-controlling interests is shown in shareholders’ equity after the statement of income for the period in each year presented.
(iii) Acquisition of non-controlling interest
Accounted for as transactions within equity holders and therefore no goodwill is recognized as a result of such transactions.
2.6 Segment information
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
An operating segment is a component of the Company (i) that engages in operating activities from which it may earn revenues and incur expenses, (ii) whose operating results are regularly reviewed by Management to make decisions about resources to be allocated and assess the segment's performance, and (iii) for which discrete financial information is available.
Company Management bases strategic decisions on reports, segmenting the business into: (i) electric energy distribution activities (“Distribution”); (ii) electric energy generation activities (“Generation”); (iii) energy commercialization and service provision activities (“Commercialization”); and (iv) other, basically corresponding to corporate services and other activities not listed in the previous items.
Presentation of the operating segments includes items directly attributable to them, such as allocations required, including intangible assets.
2.7 Information on Corporate Interests
The interests directly or indirectly held by the Company in the subsidiaries and jointly-owned entities are described in Note 1. Except for the (i) jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, which are consolidated proportionately, and (ii) the investment in Investco recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.
As of September 30, 2010, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa, CPFL Serviços and Jaguari Geração.
2.8 Value added statements
The Company prepared individual and consolidated value added statements (“DVA”) in conformity with technical pronouncement CPC 09 - Value Added Statement, which are presented as an integral part of the quarterly financial statements in accordance with the CPC standards for public companies, while for the IFRS they represent additional financial information.
( 3 ) SUMMARY OF THE SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these individual and consolidated financial statements.
3.1 Concession agreements
ICPC 01 “Concession Agreements” establishes general guidelines for the recognition and measurement of obligations and rights related to concession agreements and applies to situations in which the granting power controls or regulates which services the concessionaire should provide with the infrastructure, to whom the services should be provided and at what price, and controls any significant residual interest in the infrastructure at the end of the concession period.
These definitions having been attended to, the infrastructure of distribution concessionaires is segregated and rollforwarded from the time of construction, complying with the provisions of the CPCs and IFRSs, so that the financial statements record (i) an intangible asset corresponding to the right to operate the concession and collect from the users of public utilities, and (ii) a financial asset corresponding to the unconditional contractual right to receive cash (compensation) by reversing the assets at the end of the concession.
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
The value of the concession financial assets is determined at fair value, based on the remuneration of the assets established by the regulatory authority. The financial asset is classified as available-for-sale and is restated and amortized annually in accordance with the adjustment of its fair value, against the revaluation reserve in equity.
The remaining amount is registered in intangible assets and corresponds to the right to charge consumers for electric energy distribution services, amortized in accordance with the consumption pattern that reflects the estimated economic benefit to the end of the concession.
Provision of infrastructure construction services is registered in accordance with CPC 17 – Construction Contracts, against a financial asset corresponding to the amount subject to compensation. Residual amounts are classified as intangible assets and will be amortized over the concession period in accordance with the economic pattern against which the revenue from consumption of electric energy is collected.
In accordance with (i) the tariff model that does not provide for a profit margin for the infrastructure construction activity, (ii) the way in which the subsidiaries manage the building by using a high level of outsourcing, and (iii) there is no provision for gains on constructions in the Company‘s business plans, management is of the opinion that the margins on this operation are irrelevant, and therefore no additional value to the cost is considered in the composition of the revenue. The revenue and construction costs are therefore presented in profit or loss for the period at the same amounts.
3.2 Financial instruments
- Financial assets:
Financial assets are recognized initially on the date that they are originated or on trade date at which the Company or its subsidiaries become one of the parties to the contractual provisions of the instrument. Derecognition of a financial asset occurs when the contractual rights to the cash flows from the asset expire or when the risks and rewards of ownership of the financial asset are transferred. The Company and its subsidiaries hold the following main financial assets:
i. Classified at fair value through profit or loss: these are assets held for trading or designated as such upon initial recognition. The Company and its subsidiaries manage such assets and make purchase and sale decisions based on their fair value in accordance with their documented risk management or investment strategy. These financial assets are measured at fair value, and changes therein are recognized in profit or loss for the period.
The main financial assets classified by the Company and its subsidiaries in this category are: (i) bank balances and financial investments (Note 6), (ii) financial investments (Note 8) and (iii) derivatives (Note 31).
ii. Held-to-maturity: these are assets that the Company and its subsidiaries have the positive intent and ability to hold to maturity. Held-to-maturity financial assets are recognized initially at fair value and subsequent to initial recognition are measured at recognized cost using the effective interest method, less any impairment losses.
The Company and its subsidiaries classify the following financial assets in this category: (i) security receivable from CESP (Note 8) and (ii) receivables of the subsidiary CPFL Paulista from CESP (Note 12).
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
iii. Loans and receivables: these are assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value and, subsequent to initial recognition, measured at recognized cost using the effective interest method, less any impairment losses.
The main financial assets of the Company and its subsidiaries classified in this category are: (i) consumers, concessionaires and licensees (Note 7), (ii) dividends and Interest on shareholders’ equity (Note 13.2) and (iii) other credits (Note 12).
iv. Available-for-sale: these are non-derivative financial assets that are designated as available-for-sale or that are not classified in any of the previous categories. Subsequent to initial recognition, interest calculated by the effective rate method is recognized in profit or loss as part of the net operating income. Changes for registration at fair value are recognized in the revaluation reserve in equity. The accumulated result in other comprehensive income is transferred to profit or loss when the asset is realized.
The main asset of the Company and its subsidiaries classified in this category is the right to compensation at the end of the concession. The option to designate this instrument as available-for-sale is due to its non-classification in the previous categories described. Since Management believes that the compensation will be made at least in accordance with the current tariff pricing model, this instrument cannot be registered as loans and receivables as the compensation will not be fixed or determinable, due to the uncertainty in relation to impairment for reasons other than deterioration of the credit. The main uncertainties relate to the risk of non-recognition of part of these assets by the regulatory authority and their replacement values at the end of the concession (Note 4).
- Financial liabilities:
Financial liabilities are initially recognized on the date that they are originated or on the trade date at which the Company or its subsidiaries become a part of the contractual provisions of the instrument. The Company and its subsidiaries have the following main financial liabilities:
i. Measured at fair value through profit or loss: these are financial liabilities that are: (i) held for short-term trading, (ii) designated at fair value in order to evaluate the effects of recognition of income and expenses to obtain more relevant and consistent accounting information, or (iii) derivatives. These liabilities are registered at fair value and for any change in the subsequent measurement of the fair value, set through profit or loss.
The Company and its subsidiaries classified the following financial liabilities in this category: (i) certain foreign currency debts (Note 16) and (ii) derivatives (Note 31).
ii. Not measured at fair value through profit or loss: these other financial liabilities that are not classified in any of the previous categories. They are measured initially at fair value less any attributable transaction cost and subsequently measured at recognized cost by the effective interest method.
The main financial liabilities classified in this category are: (i) suppliers (note 18), (ii) loans and financing (note 16), (iii) debt charges (Note 16); (iv) debenture charges (Note 17); (v) debentures (Note 17); (vi) public utilities (Note 23); (vii) dividends payable and (viii) other accounts payable (note 24).
The Company accounts for warranties when these are issued to non-controlled entities or when the warranty is granted at a percentage higher than the Company's interest. Such warranties are initially measured at fair value, by (i) a liability equivalent to the income to be appropriated, which will subsequently be recognized as the Company is released from the obligations and (ii) an asset equivalent to the right to compensation by the guaranteed party, subsequently amortized by receipt of cash or on a straight-line basis to profit or loss.
31
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
Financial assets and liabilities are offset and the net amount presented when, and only when, there is a legal right to offset the amounts and the intent to settle on a net basis or to realize the asset and settle the liability simultaneously.
- Capital
Common shares are classified as equity. Additional costs directly attributable to shares issuance and share options are recognized as a deduction from equity, net of any tax effects.
3.3 Lease agreements:
It should be established at the inception of an agreement whether such arrangement is or contains a lease. A specific asset is the subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the lessor the right to control the use of the underlying asset.
Leases in which substantially all the risks and rewards are with the lessor are classified as operating leases. Payments/receipts made under operating leases are recognized as expense/revenue in profit or loss on a straight-line basis, over the term of the lease.
Leases which involve not only the right to use assets, but also substantially transfer the risks and rewards to the lessee, are classified as finance leases.
In finance leases in which the Company or its subsidiaries act as lessee, the assets are capitalized to property, plant and equipment at the inception of the agreement against a liability measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. The property, plant and equipment is depreciated in accordance with the accounting policy applicable to that asset.
If the Company or its subsidiaries are the lessor in a finance lease, the investment is initially recognized at the construction/acquisition cost of the asset.
In both cases, the financial income/expense is recognized in profit or loss for the period over the term of the lease so as to produce a constant rate of interest on the remaining balance of the investment/liability.
3.4 Property, plant and equipment:
Items of property, plant and equipment are measured at acquisition, construction or formation cost less accumulated depreciation and, if applicable, accumulated impairment losses. Cost also includes any other costs attributable to bringing the assets to the place and in a condition to operate as intended by management, the cost of dismantling and removing the items and restoring the site on which they are located and capitalized borrowing costs on qualifying assets.
The assets were measured at the transition date in accordance with the CPC and IFRS rules by segregation into two groups:
- Assets measured at deemed cost at the transition date: model adopted for assets built and put into long-term service where it is not possible to reconstruct the cost formation or where the cost of the survey is of no benefit in presentation of the financial statements. The cost of these items at the transition date was therefore determined in accordance with market prices (“deemed cost”) and the revalued amounts are presented for both cost and accumulated depreciation. The effects of the deemed cost increased property, plant and equipment against equity, net of related tax effects.
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
- Assets measured at historic cost: model adopted by the Company for recently built assets where the basis for cost formation can be easily confirmed and the values at historic cost approximate the respective market values. In such cases, the subsidiaries performed an analysis to ensure that the cost formation is in accordance with current accounting practices.
The replacement cost of items of property, plant and equipment is recognized if it is probable that it will involve economic rewards for the subsidiaries and if the cost can be reliably measured, and the value of the replaced item is written off. Maintenance costs are recognized in profit or loss as they are incurred.
Depreciation is calculated on a straight-line basis, at annual rates of 2% to 20%, taking into consideration the estimated useful life of the assets, as instructed and defined by the regulatory authority. In the case of generators subject to regulation by Decree 2003, of 1996, the assets are depreciated at the rates established by the regulatory authority, provided they do not exceed the term of the concession.
Gains and losses derived from write-down of an item of property, plant and equipment are determined by comparing the resources produced by disposal with carrying amount of the asset, and are recognized net together with other operating income/expense.
Assets and facilities used in the regulated activities are tied to these services and may not be removed, disposed of, assigned or pledged in mortgage without the prior and express authorization of ANEEL. ANEEL regulates the release of Public Electric Energy Utility concession assets, granting prior authorization for release of assets of no use to the concession, intended for disposal and determines that the proceeds of the disposal be deposited in a tied bank account for use in the concession.
3.5 Intangible assets:
Includes rights related to non-physical assets such as goodwill, concession exploration rights, software and rights-of-way.
Goodwill that arises from the acquisition of subsidiaries is measured at the difference between the amount paid and/or payable for acquisition of a business and the net fair value of the assets and liabilities of the subsidiary acquired.
Goodwill is measured at cost less accumulated impairment losses. Goodwill and other intangible assets with indefinite useful lives are not subject to amortization and tested annually for impairment.
Negative goodwill are registered as gains in profit or loss at the time of the acquisition.
In the individual financial statements, goodwill is included in the carrying amount of the investment, and stated as intangible in the consolidated financial statements.
Intangible assets corresponding to the right to operate concessions can have three separate origins, based on the following arguments:
i. Acquisitions through business combinations: the portion of goodwill arising from business combinations that corresponded to the right to operate the concession is stated as an intangible asset. Such amounts are amortized based on the net income curves projected for the concessionaires for the remaining term of the concession.
ii. Investments in infrastructure (Application of ICPC 01 – Concession agreements): Under the electric energy distribution concession agreements with the subsidiaries, the intangible asset registered corresponds to the concessionaires' right to collection uses for use of the concession infrastructure. Since the exploration term is defined in the agreement, intangible assets with defined useful lives are amortized over the term of the concession in proportion to a curve that reflects the consumption pattern in relation to the anticipated economic rewards. For further information see Note 3.1.
33
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
Assets and facilities used in the regulated activities are tied to these services and may not be removed, disposed of, assigned or pledged in mortgage without the prior and express authorization of ANEEL. ANEEL regulates the release of Public Electric Energy Utility concession assets, granting prior authorization for release of assets of no use to the concession, intended for disposal and determines that the proceeds of the disposal be deposited in a tied bank account for use in the concession.
iii. Public utilities: certain generation concessions were granted against payment to the federal government for use of a public utility. This obligation was registered on the date of signing the respective agreements, at present value, against the intangible assets account. These amounts, capitalized by interest incurred on the obligation to the start-update, are amortized on a straight-line basis over the remaining term of the concession.
3.6 Impairment
- Financial assets:
A financial asset not measured at fair value through profit or loss is reassessed at each reporting date to determine whether there is objective evidence that it is impaired. Impairment can occur after the initial recognition of the asset and have a negative effect on the estimated future cash flows.
The Company and its subsidiaries consider evidence of impairment of receivables and held-to-maturity investment securities at both a specific assets and collective level for all significant securities. Receivables and held-to-maturity investment securities that are not individually significant are collectively assessed for impairment by grouping together the securities with similar risk characteristics.
In assessing collective impairment the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management's judgment as to whether the assumptions and current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historic trends.
An impairment loss of a financial asset is recognized as follows:
· Amortized cost: as the difference between the carrying amount and the present value of the estimated future cash flows discounted at the assets original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognized through the unwinding of the discount. When a subsequent event indicates the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
· Available-for-sale: by reclassification of the cumulative loss that has been recognized in the revaluation reserve in equity, to profit or loss. This reclassified loss is the difference between the acquisition cost, net of any principal repayment and amortization of the principal, and the current fair value, less any impairment loss previously recognized in profit or loss. Changes in impairment provisions attributable to effective interest rate are reflected as a component of financial income.
If an increase (gain) is identified in periods subsequent to recognition of the loss, then the impairment loss is reversed, with the amount of the reversal recognized in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale financial asset is recognized in the revaluation reserve in equity.
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
- Non-financial assets:
Non-financial assets that have indefinite useful lives, such as goodwill, are tested annually to check that the asset's carrying amount does not exceed the recoverable value. Other assets subject to amortization are tested for impairment whenever events or changes in circumstance indicate that the carrying amount may be impaired.
An impairment loss is recognized if the carrying amount of an asset exceeds its estimated recoverable amount, which is the greater of its value in use and its fair value less costs to sell.
The methods used to assess impairment include tests based on the asset's value in use. In such cases, the assets (e.g. goodwill) are segregated and grouped together at the lowest level that generates identifiable cash flows (the "cash generating unit", or CGU). If there is an indication of impairment, the loss is recognized in profit or loss. Except in the case of goodwill, where the loss cannot be reversed in the subsequent period, impairment losses are assessed annually for any possibility to reverse the impairment.
Goodwill included in the carrying amount of an investment in an associate, as it is not recognized individually, is tested with the investment, as if it were a single asset.
3.7 Provisions
A provision is recognized if, as a result of a past event, there is a legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If applicable, provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessment and the risks specific to the liability.
3.8 Employee benefits
The subsidiaries have post-employment benefits and pension plans, recognized by the accrual method in accordance with CPC 33 “Employee benefits”. Although the plans have particularities, they have the following characteristics:
i. Defined contribution plan: a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no liability for the actuarial deficits of this plan. The obligations are recognized as an expense in profit or loss in the periods during which the services are rendered.
ii. Defined benefit plan: The net obligation is calculated as the difference between the present value of the actuarial obligation based on assumptions, biometric studies and interest rates in line with market rates, and the fair value of the plan assets of the reporting date. The actuarial liability is calculated annually by independent actuaries using the projected unit credit method. The subsidiaries use the corridor method to avoid fluctuations in the macroeconomic conditions distorting the profit or loss for the period. The accumulated differences between the actuarial estimates and the actual results are therefore not recognized in the financial statements unless they are in excess of 10% of the greater of the plan liabilities and assets. Unrecognized gains and losses in excess of this limit are recognized in profit or loss for the year over the estimated remaining service time of the employees. If the plan records a surplus and it becomes necessary to recognize an asset, recognition is limited to the total of any unrecognized past service costs and the present value of economic benefits available in the form of reimbursements or future reductions in contributions to the plan.
35
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
3.9 Dividends and Interest on shareholders’ equity
Under Brazilian law, the Company is required to distribute a mandatory minimum annual dividend of 25% of net income adjusted in accordance with the bylaws. To December 31, 2008, dividends in excess of the minimum of 25% had to be proposed and provisioned at each reporting date, subject to approval in an Annual General Meeting (AGM). According to international accounting practices, CPC 24 and ICPC 08, a provision may only be made for the minimum mandatory dividend, and dividends declared but not yet approved are only recognized as a liability in the financial statements after approval by the competent body. They will therefore be held in equity, in the “Additional dividend proposed” account, as they do not meet the criteria of present liability at the reporting date.
As established in the Company's bylaws and in accordance with current Corporate law, the Board of Directors is responsible for declaring interim dividends and Interest on shareholders’ equity determined in a half-yearly balance sheet. Interim dividends declared at the base date of June 30 is only recognized as a liability in the Company's financial statement after the date of the Board's decision.
Under previous accounting practices, Interest on shareholders’ equity was recorded in profit or loss and reversed for purposes of presentation of the statement of income for the year. In accordance with the new accounting practice, Interest on shareholders’ equity is no longer shown in the statement of income for the year and the effects are only stated in changes in equity and in the effective income tax and social contribution rates.
3.10 Revenue recognition
Operating income in the course of ordinary activities of the subsidiaries is measured at the fair value of the consideration received or receivable. Operating revenue is recognized when persuasive evidence exists that the most significant risks and rewards have been transferred to the buyer, when it is probable that the financial and economic rewards will flow to the entity, that the associated costs can be reliably estimated, and the amount of the operating income can be reliably measured.
Revenue from distribution of electric energy is recognized when the energy is billed. Unbilled income related to the monthly billing cycle is appropriated based on the actual amount of energy provided in the month and the annualized loss rate. Historically, the difference between the unbilled revenue and the actual consumption, which is recognized in the subsequent month, has not been material. Revenue from energy generation sales is accounted for based on the assured energy and at tariffs specified in the terms of the contract or the current market price, as applicable. Energy commercialization revenue is accounted for based on bilateral contracts with market agents and duly registered with the Electric Energy Commercialization Chamber - CCEE. No single consumer represents 10% or more of the total billing.
Service revenue is recognized when the service is effectively provided, under a service agreement between the parties.
Revenue from construction contracts is recognized by the percentage of completion method (“fixed-price”), and losses are recognized in profit or loss as incurred.
3.11 Income tax and Social contribution
Income tax and Social contribution expense for the period is calculated and recognized in accordance with the legislation in force and comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to an item recognized directly in equity or in the revaluation reserve in equity, which is recognized net of tax effects.
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
Current tax is the expected tax payable or receivable/to be offset on the taxable income or loss for the year. Deferred tax is recognized for temporary differences between the carrying amounts of assets and liabilities for accounting purposes and the equivalent amounts used for tax purposes.
The Company and certain subsidiaries recorded in their financial statements the effects of tax loss carryforwards and temporary non-deductible differences, based on projections of future taxable profits, approved by the Boards of Directors and examined by the Fiscal Council. The subsidiaries also recognized tax credits on merged goodwill, which is amortized in proportion to the individual projected net incomes for the remaining term of each concession agreement.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity.
Deferred income tax and social contribution assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
3.12 Earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to the Company by the weighted average number of common and preferred shares outstanding during the period. Diluted earnings per share is determined by the above-mentioned weighted average number of shares outstanding, adjusted for the effects of all dilutive potential convertible notes for the reporting periods, in accordance with CPC 41 e IAS 33.
3.13 Regulatory assets and liabilities
In accordance with the preliminary interpretation of IASB/IFRIC, regulatory assets and liabilities cannot be recognized in the Company's financial statements as they do not meet the requirements for assets and liabilities described in the Framework for the Preparation and Presentation of Financial Statements. The rights or offsetting are therefore only reflected in the financial statements to the extent that the electric energy is consumed by the captive customers.
( 4 ) DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
- Property, plant and equipment and intangible assets
The fair value of property, plant and equipment and intangible assets recognized as a result of a business combination is based on market values. The market value of property is the estimated amount for which a property could be exchanged on the date of valuation between knowledgeable and willing parties under normal market conditions. The fair value of items of property, plant and equipment is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate.
37
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
- Financial instruments
Financial instruments measured at fair values were recognized based on quoted prices in an active market, or assessed using 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 rate curves, based on information obtained from the BM&F, BOVESPA and ANDIMA websites, when available. 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.
Financial assets classified as available-for-sale refer to the right to compensation to be paid by the Federal Government on reversal of the assets of the distribution concessionaires. The methodology adopted for marking these assets to market is based on the tariff review process for distributors. This review, conducted every four or five years according to each concessionaire, consists of revaluation at market price of the distribution infrastructure. This valuation basis is used for pricing the tariff, which is increased annually up to the next tariff review, based on the parameter of the main inflation ratios.
Although the methodology and criteria for valuation of the compensation on reversal of the assets has not yet been defined by the Federal Government, company management believes that it will be based at least on the tariff pricing model. Accordingly, at the time of the tariff review, each concessionaire adjusts the position of the financial asset base for compensation at the amounts ratified by the regulatory authority and uses the General Market Price Index - IGP-M as best estimate for adjusting the original base to the fair value at subsequent dates, in conformity with the Tariff Review process.
( 5 ) FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
As a result of the enactment of Laws 11.638/07 and 11.941/09, in 2008, the CPC issued and the CVM approved a series of accounting Pronouncements and Interpretations with the objective of bringing Brazilian accounting practices into line with the international financial reporting standards (“IFRS”). These pronouncements have been fully applied, completing the first stage of the convergence.
In order to fully complete the process, further pronouncements were issued in the course of 2009 and 2010, so that the consolidated quarterly financial statements as of September 30, 2010 would be in line with international standards.
These quarterly financial statements are the first to have been prepared in conformity with the IFRS. In order to make the accounting practices standardization process possible, the Company applied CPCs 37 and 43 and IFRS 1, adopting January 1, 2009 as the transition date. Consequently, the 2009 financial statements are re-presented with the adjustments on adoption of the above-mentioned CPCs identified.
According to the pronouncements referred to above, there are mandatory retroactive application exceptions and optional exemptions.
Procedures adopted by the Company:
- Employee benefits: Recognition of the defined benefit type pension plans. In view of the impracticality of retroactive application, the Company took advantage of the exemption and all past gains and losses were recognized at January 1, 2009 against the accrued loss account.
- ICPC 01 – Concession agreements: Retroactive reconciliation of the financial assets and intangible assets accounted for in accordance with ICPC 01 and IFRIC 12. Accordingly, the Company did not use the exemption allowed for the transition rules.
- Business combinations: In accordance with the exemption permitted by CPC 37 and IFRS 1, the Company opted not to apply the requirements of CPC 15 – Business combinations retroactively in the transition to the International accounting standards. Accordingly, only business combinations occurring after January 1, 2009 reflect the requirements of this pronouncement.
38
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
- Deemed cost: CPC 37 allows the option to measure an item of property, plant and equipment at the deemed cost at the transition date, in accordance with Technical Interpretation ICPC 10 - Interpretation on the First Application to Property, Plant and Equipment and to Investment Property of Technical Pronouncements CPC 27, 28, 37 and 43. The Company opted to recognize the property, plant and equipment of the subsidiaries CPFL Sul Centrais and CPFL Geração at market value at the transition date.
- The estimates used in preparation of these financial statements at January 1, 2009 and December 31, 2009 are consistent with the estimates made on the same dates in accordance with the practices previously adopted in Brazil.
The impact of the transition to the international accounting practices on the shareholders’ equity at January 1, 2009 and December 31, 2009 and September 30, 2010 and the profit or loss for the period are described below.
5.1 Reconciliation of the adjustments and reclassifications on adoption of the new accounting practices:
a) Shareholders’ equity as of January 1, 2009, December 31, 2009 and September 30, 2010:
|
Consolidated | ||||||
Reference |
September 30, 2010 |
December 31, 2009 |
01/01/2009 | ||||
Previous equity |
5,525,827 |
5,082,942 |
5,018,619 | ||||
Adjustments |
|||||||
Reversal of regulatory assets and liabilities |
5.3.2 |
57,718 |
(7,871) |
(690,956) | |||
Pension plan |
5.3.7 |
(288,200) |
(288,192) |
(294,939) | |||
ICPC 01 - Concession agreements |
5.3.3 |
274,073 |
185,026 |
200,186 | |||
Property, plant and equipment - deemed cost |
5.3.4 |
933,767 |
963,440 |
1,002,991 | |||
Write-down of discount |
5.3.8 |
12,828 |
12,828 |
12,828 | |||
Guarantees |
5.3.8 |
(33,932) |
(21,099) |
(17,832) | |||
Public utility |
5.3.5 |
(65,258) |
(29,317) |
(28,868) | |||
Depreciation rate |
5.3.6 |
(20,466) |
(27,288) |
- | |||
Other |
5.3.8 |
8,673 |
4,533 |
377 | |||
Dividend |
5.3.8 |
- |
664,522 |
614,642 | |||
Tax effects on the adjustments |
(302,456) |
(269,087) |
(20,307) | ||||
Effects of adjustments on the Noncontrolling interests |
14,142 |
(1,089) |
(4,058) | ||||
Parent company equity after application of the new practices |
6,116,716 |
6,269,348 |
5,792,683 | ||||
Noncontrolling interests as a result of the change in consolidation practices |
194,694 |
181,301 |
165,773 | ||||
Effects of adjustments on Noncontrolling interests |
(14,142) |
1,089 |
4,058 | ||||
Previous Noncontrolling interests |
74,494 |
85,041 |
88,332 | ||||
Total equity after adoption of the new practices |
6,371,762 |
6,536,779 |
6,050,846 | ||||
Equity of the controlling interests |
6,116,716 |
6,269,348 |
5,792,683 | ||||
Noncontrolling interests |
255,046 |
267,431 |
258,163 |
b) Statement of income for the period ended in September 30, 2009 and 2010:
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: September 30, 2010
Consolidated | |||||
Reference |
September 30, 2010 |
September 30, 2009 | |||
Previous net income |
1,162,088 |
861,345 | |||
Adjustments |
|||||
Reversal of regulatory assets and liabilities |
5.3.2 |
65,590 |
486,850 | ||
Pension plan |
5.3.7 |
9 |
56 | ||
ICPC 01 - Concession agreements |
5.3.3 |
31,741 |
(3,029) | ||
Property, plant and equipment - deemed cost |
5.3.4 |
(29,673) |
(29,660) | ||
Guarantees |
5.3.8 |
(12,833) |
(15) | ||
Public utility |
5.3.5 |
(8,652) |
604 | ||
Depreciation rate |
5.3.6 |
(20,466) |
(20,466) | ||
Other |
5.3.8 |
4,678 |
3,363 | ||
Tax effects |
(14,339) |
(178,541) | |||
Effects of adjustments on the Noncontrolling interests |
4,033 |
2,286 | |||
Net parent company income after application of the new practices |
1,182,176 |
1,122,793 | |||
Noncontrolling interests as a result of the change in consolidation practices |
13,400 |
16,076 | |||
Effects of adjustments on the Noncontrolling interests |
(4,033) |
(2,286) | |||
Previous Noncontrolling interests |
6,871 |
8,295 | |||
Total net income after adoption of the new practices |
1,198,414 |
1,144,878 |
c) Statement of Cash Flow as of September 30, 2009 and 2010:
2010 | |||||||||||||||
3rd quarter |
Nine month 2010 | ||||||||||||||
Previous |
Consolidation |
Adjustments |
New practices |
Previous |
Consolidation |
Adjustments |
New practices | ||||||||
Income including Social Contribution and Income tax |
605,774 |
8,906 |
(65,781) |
548,899 |
1,816,928 |
20,423 |
31,200 |
1,868,551 | |||||||
Adjustments to income |
314,004 |
7,267 |
4,524 |
325,795 |
790,519 |
25,171 |
(88,074) |
727,616 | |||||||
Operating assets |
(74,111) |
(1,273) |
6,056 |
(69,328) |
(160,889) |
(224) |
(68,923) |
(230,036) | |||||||
Operating liabilities |
(314,257) |
(6,187) |
59,194 |
(261,250) |
(750,748) |
(27,862) |
113,007 |
(665,603) | |||||||
Cash from operations |
531,410 |
8,713 |
3,993 |
544,116 |
1,695,810 |
17,508 |
(12,790) |
1,700,528 | |||||||
Acquisitions of property, plant and equipment |
(493,950) |
(955) |
321,942 |
(172,963) |
(1,201,843) |
(2,017) |
749,750 |
(454,110) | |||||||
Additions of intangible assets |
(26,297) |
- |
(309,112) |
(335,409) |
(72,411) |
(1) |
(703,931) |
(776,343) | |||||||
Other |
(6,496) |
- |
(16,825) |
(23,321) |
44,670 |
7 |
(47,829) |
(3,152) | |||||||
Cash from investments |
(526,743) |
(955) |
(3,995) |
(531,693) |
(1,229,584) |
(2,011) |
(2,010) |
(1,233,605) | |||||||
Cash from financing |
(244,835) |
(4,739) |
5 |
(249,569) |
(804,470) |
(24,199) |
14,806 |
(813,863) | |||||||
Increase (decrease) in cash and cash equivalents |
(240,168) |
3,019 |
4 |
(237,146) |
(338,244) |
(8,702) |
7 |
(346,940) | |||||||
Opening cash and cash equivalents balance |
1,375,099 |
2,347 |
- |
1,377,449 |
1,473,175 |
14,068 |
- |
1,487,243 | |||||||
Closing cash equivalents balance |
1,134,931 |
5,366 |
4 |
1,140,304 |
1,134,931 |
5,366 |
7 |
1,140,304 |
40
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
2009 | |||||||||||||||
3rd quarter |
Nine month 2010 | ||||||||||||||
Previous |
Consolidation |
Adjustments |
New practices |
Previous |
Consolidation |
Adjustments |
New practices | ||||||||
Income including Social Contribution and Income tax |
452,253 |
9,487 |
243,307 |
705,047 |
1,356,653 |
24,302 |
400,966 |
1,781,921 | |||||||
Adjustments to income |
291,835 |
7,313 |
(25,619) |
273,529 |
886,449 |
21,370 |
23,342 |
931,161 | |||||||
Operating assets |
116,630 |
(2,111) |
(172,820) |
(58,301) |
239,557 |
(1,160) |
(426,045) |
(187,648) | |||||||
Operating liabilities |
(188,624) |
(7,721) |
(13,556) |
(209,901) |
(898,621) |
(23,412) |
11,157 |
(910,876) | |||||||
Cash from operations |
672,094 |
6,968 |
31,312 |
710,374 |
1,584,038 |
21,100 |
9,420 |
1,614,558 | |||||||
Acquisitions of property, plant and equipment |
(300,012) |
(653) |
176,554 |
(124,112) |
(826,510) |
(8,127) |
445,047 |
(389,591) | |||||||
Additions of intangible assets |
(19,381) |
- |
(172,971) |
(192,352) |
(51,153) |
(31) |
(411,572) |
(462,756) | |||||||
Other |
23,000 |
(46) |
(14,364) |
8,590 |
81,870 |
4,211 |
(42,898) |
43,183 | |||||||
Cash from investments |
(296,393) |
(699) |
(10,781) |
(307,873) |
(795,793) |
(3,947) |
(9,423) |
(809,163) | |||||||
Cash from financing |
(427,029) |
(8,610) |
(20,530) |
(456,169) |
(846,364) |
(22,644) |
- |
(869,008) | |||||||
Increase (decrease) in cash and cash equivalents |
(51,328) |
(2,341) |
(3) |
(53,668) |
(58,119) |
(5,491) |
(3) |
(63,613) | |||||||
Opening cash and cash equivalents balance |
731,056 |
17,453 |
- |
748,509 |
737,847 |
20,607 |
- |
758,454 | |||||||
Closing cash equivalents balance |
679,728 |
15,112 |
(3) |
694,841 |
679,728 |
15,116 |
(3) |
694,841 |
5.2 Reclassification of the amounts of the financial statements published previously:
Certain reclassifications were made in order to adjust presentation of the financial statements to the new accounting standard, with a view to facilitate understanding of the Company's operations. These reclassifications relate basically to (i) reclassification of balances of escrow deposits that were previously presented net of provisions for contingencies, (ii) transfer of the balance of tax credits or debits from current to non-current and consequent offset of the balances of assets and liabilities in compliance with the provisions of CPC 26 – Presentation of the financial statements and CPC 32 – Income taxes, and (iii) transfer of balances between accounts to open or group items that became or ceased relevant in presentation of the balance sheet, after adoption of new practices.
5.3 Nature of the adjustments on first application of the IFRS
5.3.1 Consolidation adjustments:
The concept of consolidation applied by the accounting practices applied previously differs from the concepts established by CPCs 36 and 19, which are based on the control criterion. According to CPC 36, control is the ability to preside over the financial and operational policies of the entity so as to obtain the rewards of its activities. CPC 19 establishes that joint control exists when the strategic and operating decisions in relation to the activity require a unanimous consensus of the parties sharing the control, thereby permitting proportionate consolidation of the subsidiary's financial statements.
Application of these concepts for the investments held by the Company resulted in a change in the consolidation criterion for the subsidiary CERAN, which is now fully consolidated. The adjustment recognized in this lines refers to the amounts of the difference between 100% and the interest held in the subsidiary, which were added line by line for consolidation purposes.
5.3.2 Reversal of regulatory assets and liabilities
To December 31, 2008, the electric energy concessionaires had regulatory asset balances referring to pre-payments made by the concessionaire in relation to the increase in the electric energy acquisition cost and expenditure on system charges, among others, which were received by tariff increase granted by the regulatory authority in the following years. They also had regulatory liability balances in relation to the decrease in these non-manageable costs to be returned to the consumers by a subsequent reduction in the tariff.
41
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
In accordance with the new practices (Note 3.13), these regulatory assets and liabilities cannot be recognized, as they do not meet the criteria for definition of assets and liabilities as established in the Framework for the Preparation and Presentation of Financial Statements.
The adjustment made refers to the reversal of the balances of regulatory assets and liabilities of the distribution subsidiaries. Note 32 shows a breakdown of these balances for the reporting dates presented.
5.3.3 ICPC 01 – Concession Agreements and adjustment for reconciliation of the intangible infrastructure asset
In accordance with the previous accounting practices, the whole concession infrastructure was accounted for as a fixed asset tied to the concession. ICPC 01 changes the method for recognizing the concessions if certain conditions are met, such as: (i) control over the activities to be provided, to whom the services are provided and at what price, and (ii) the reversal of the assets to the Granting Authority at the end of the concession.
These definitions having been met, the infrastructure of the distribution concessionaires has been segregated and rollforwarded since the construction date, complying with the provisions of the CPCs and IFRSs, so that the following was recognized in the financial statements (i) an intangible asset corresponding to the right to operate the concession by collecting from the users of the public utilities, and (ii) a financial asset corresponding to the unconditional contractual right to receive payment (compensation) by reversal of the assets at the end of the concession.
The financial concession asset was measured at fair value, based on the remuneration of the assets fixed by the regulatory body. The financial asset is classified as available-for-sale and is restated and amortized annually in accordance with the adjustment of its fair value, against the revaluation reserve in equity account.
The remaining amount was recognized in intangible assets and corresponds to the right to collect from consumers for the electricity energy distribution services, and amortized in accordance with the consumption pattern that reflects the estimated economic benefit to the end of the concession.
In accordance with ICPC01 and OCPC05, the distribution subsidiaries applied the concepts retroactively and reconstructed the infrastructure accounting base so that the costs used in formation of the intangible and financial asset are fully aligned with the provisions of the international accounting standards.
The adjustments to the lines of net income and services cost relate to recognition of the revenue from construction work of the distribution assets carried out by the concessionaires. For further details, see Note 3.1.
The following tables show the reclassifications and adjustments made in the distribution companies to comply with ICPC01, at January 1, 2009 and December 31, 2009.
42
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
January 1, 2009 | |||||||
Previous |
Transfers between asset accounts |
Adjustments to equity and income statement |
New practices | ||||
Property, plant and equipment |
3,308,975 |
(3,308,975) |
- |
- | |||
Intangible assets |
717,570 |
2,938,831 |
(11,912) |
3,644,489 | |||
Financial assets |
- |
370,144 |
212,097 |
582,241 | |||
December 31, 2009 | |||||||
Previous |
Transfers between asset accounts |
Adjustments to equity and income statement |
New practices | ||||
Property, plant and equipment |
3,579,720 |
(3,579,720) |
- |
- | |||
Intangible assets |
741,307 |
3,105,894 |
(15,177) |
3,832,024 | |||
Financial assets |
- |
473,826 |
200,204 |
674,030 |
5.3.4 Recognition of property, plant at equipment at deemed cost
As previously mentioned, the Company opted to apply the exemption foreseen in CPC 37 in respect of evaluation of property, plant and equipment, at the transition date, for the assets of the subsidiaries CPFL Sul Centrais and CPFL Geração, taking the fair value of the transition date as the deemed cost.
5.3.5 Public utilities
On signing their Concession Agreements, the subsidiary CERAN and the jointly-controlled ENERCAN, BAESA and Foz do Chapecó 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.
To December 31, 2008, the subsidiaries recognized the granting expenses in profit or loss in accordance with their maturities. Under the new practices, the Public Utilities liabilities, discounted to present value in accordance with the fundraising rates of each venture, have been recognized on the date of signing the contract, against an intangible asset related to the right to exploit the concession.
5.3.6 Depreciation over the concession term
The concession agreements of the subsidiary CERAN and the jointly-owned subsidiaries ENERCAN, BAESA and Foz do Chapecó are ruled by Decree 2003, of 1996. In view of all the legal disputes and potential conflicts between (i) the wording of the Concessions Law, (ii) interpretations of the decree itself, and (iii) the way in which the concession agreements were drawn up, the Company conservatively made the adjustment to the related depreciation rates so that the property, plant and equipment related to the basic project would be depreciated over the useful life of the asset, provided it is restricted to the term of the concession.
5.3.7 Pension plan
- Employee benefit (pension plan)
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: September 30, 2010
As previously mentioned, the Company opted to recognize all accumulated actuarial gains and losses at January 1, 2009. The adjustment of R$ 294,939 (R$ 194,660 net of tax effects) corresponds to recognition of the accumulated actuarial loss at the transition date, in accordance with CPC 37, for all the defined benefit plans of the subsidiaries CPFL Paulista, CPFL Piratininga, CPFL Geração and RGE.
5.3.8 Other adjustments:
- Write-down of negative goodwill
In accordance with CPC 15 “Business Combinations”, negative goodwill recognized in accordance with the previous accounting practices should be written down at the transition date for the international accounting practices.
An adjustment of R$ 12,828 (R$ 8,466 net of tax effects) was made in the Investment in relation to the write-down against retained earnings in the opening equity at the transition date.
- Guarantees provided
The accounting practices adopted in Brazil to December 31, 2008 contained no specific pronouncement in respect of the requirements for accounting for guarantees, and issuing of guarantees was therefore not recognized in the financial statements.
As a result of adoption of the pronouncements on recognition, measurement, presentation and disclosure of financial instruments (CPC 38, CPC 39 and CPC 40) from January 1, 2009, the Company now recognizes guarantees issued in excess of its participation in the joint ventures.
These guarantees are recognized initially at the fair value of the obligation on issue. The Company therefore recognized a liability in Other Payables corresponding to the fair value of the guarantee contracted on January 1, 2009 to a total amount of R$ 63,692, which will be amortized by a credit in finance income as the guarantee risk is discharged.
The balancing items of R$ 45,860 were recognized as Other assets. The amount corresponding to the Company's participation in each jointly-owned subsidiary and the amounts that will not be reimbursed by the other shareholders of the jointly-owned subsidiaries are recognized in profit or loss as finance expense to maturity. Any remaining amount is subject to reimbursement by the other shareholders of the jointly-owned subsidiaries. The net adjustment against retained earnings at January 1, 2009 was R$ 17,832 (R$11,769 net of tax effects).
- Dividend and Interest on shareholders’ equity
The practices adopted previously determined that retained earnings should be distributed at the end of the year. A provision was recognized for the amount corresponding to appropriation of dividends as proposed by management even if it was subject to approval by the AGM.
In accordance with current accounting practices, as mentioned in Note 3.9, provisions are only recognized for amounts in excess of the minimum mandatory dividend after approval in an AGM, at which point they meet the obligation criteria determined by CPC 25. The adjustment stated reflects a reversal of the provision for an additional dividend to be paid in excess of the mandatory dividend not yet approved in a Meeting of Shareholders.
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: September 30, 2010
- Revaluation reserve
The adjustments in this group relate to (i) recognition of the value-added of the cost allocated to the property, plant and equipment of the generators and (ii) the balancing item of the restatement of the financial concession asset.
- Non-controlling interest
In accordance with the new accounting practices (CPC 26), since January 1, 2009, the Company has classified the participation of non-controlling shareholders as part of the consolidated results and of equity in the consolidated financial statements.
To December 31, 2008, this amount was stated in liabilities in the consolidated balance sheet and the adjustment in this line corresponded to reclassification of the liability to equity.
The amount previously stated in net income is now stated as net income attributable to the Company and the portion of the noncontrolling interests as net income attributable to noncontrolling interests.
( 6 ) CASH AND CASH EQUIVALENTS
Parent Company |
Consolidated | |||||||
September 30, 2010 |
|
December 31, 2009 |
September 30, 2010 |
|
December 31, 2009 | |||
Bank balances |
4,076 |
5,029 |
92,151 |
313,104 | ||||
Short-term financial investments |
105 |
214,097 |
1,048,153 |
1,174,139 | ||||
|
| |||||||
Total |
4,181 |
219,126 |
1,140,304 |
1,487,243 |
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).
( 7 ) 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 at September 30, 2010 and December 31, 2009:
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: September 30, 2010
Consolidated | ||||||||||
Amounts |
Past due |
Total | ||||||||
coming due |
until 90 dias |
> 90 dias |
September 30, 2010 |
December 31, 2009 | ||||||
Current |
||||||||||
Consumer classes |
||||||||||
Residential |
290,972 |
195,033 |
20,099 |
506,104 |
485,541 | |||||
Industrial |
179,329 |
54,521 |
44,678 |
278,528 |
264,798 | |||||
Commercial |
115,692 |
42,339 |
16,662 |
174,693 |
189,080 | |||||
Rural |
36,260 |
7,435 |
1,627 |
45,322 |
32,671 | |||||
Public administration |
30,823 |
5,823 |
1,117 |
37,763 |
60,943 | |||||
Public lighting |
24,782 |
3,991 |
17,083 |
45,856 |
60,557 | |||||
Public utilities |
41,600 |
5,571 |
993 |
48,164 |
35,380 | |||||
Billed |
719,458 |
314,713 |
102,259 |
1,136,430 |
1,128,970 | |||||
Unbilled |
451,032 |
- |
- |
451,032 |
388,162 | |||||
Financing of Consumers' Debts |
58,195 |
18,984 |
48,544 |
125,723 |
91,437 | |||||
Free energy |
3,808 |
- |
- |
3,808 |
3,506 | |||||
CCEE transactions |
37,638 |
- |
- |
37,638 |
14,722 | |||||
Concessionaires and Licensees |
195,295 |
- |
- |
195,295 |
184,891 | |||||
Provision for doubtful accounts |
- |
- |
(87,594) |
(87,594) |
(81,974) | |||||
Other |
27,776 |
2,617 |
622 |
31,015 |
23,144 | |||||
Total |
1,493,202 |
336,314 |
63,831 |
1,893,347 |
1,752,858 | |||||
Non current |
||||||||||
Financing of Consumers' Debts |
128,621 |
- |
- |
128,621 |
140,893 | |||||
Free energy |
- |
- |
- |
- |
38 | |||||
CCEE transactions |
41,301 |
- |
- |
41,301 |
41,301 | |||||
Concessionaires and Licensees |
10,664 |
- |
- |
10,664 |
42,655 | |||||
Total |
180,586 |
- |
- |
180,586 |
224,887 |
Allowance for doubtful accounts
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: September 30, 2010
Consolidated | |
At December 31, 2009 |
(81,974) |
Provision recognized |
(21,349) |
Recovery of revenue |
9,576 |
Write-off of accounts receivable provisioned |
13,047 |
At March 31, 2010 |
(80,700) |
Provision recognized |
(32,113) |
Recovery of revenue |
13,805 |
Write-off of accounts receivable provisioned |
13,098 |
At June 30, 2010 |
(85,910) |
Provision recognized |
(26,973) |
Recovery of revenue |
19,418 |
Write-off of accounts receivable provisioned |
5,871 |
At September 30, 2010 |
(87,594) |
( 8 ) 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 September 30, 2010, the current assets balance of the parent company is R$ 40,837 (R$ 39,253 as of December 31, 2009), and the noncurrent assets balance is R$ 45,148 (R$ 62,179 as of December 31, 2009). 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.
( 9 ) RECOVERABLE TAXES
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: September 30, 2010
Parent Company |
Consolidated | |||||||
September 30, 2010 |
|
December 31, 2009 |
September 30, 2010 |
|
December 31, 2009 | |||
Current |
||||||||
Prepayments of social contribution - Social Contribution |
- |
- |
839 |
8,189 | ||||
Prepayments of income tax - Income tax |
- |
42 |
3,967 |
19,549 | ||||
Income tax and social contribution to be offset |
2,780 |
3,023 |
13,341 |
15,424 | ||||
Withholding tax - IRRF |
17,668 |
9,367 |
50,785 |
42,959 | ||||
IRRF on interest on equity |
15,223 |
31,867 |
15,223 |
33,095 | ||||
ICMS to be offset |
- |
- |
66,590 |
48,271 | ||||
Social integration program - PIS |
- |
- |
3,915 |
4,545 | ||||
Contribution for Social Security financing- COFINS |
43 |
- |
11,885 |
12,028 | ||||
National Social Security Institute - INSS |
- |
- |
1,005 |
1,115 | ||||
Other |
1 |
11 |
11,199 |
7,103 | ||||
Total |
35,715 |
44,310 |
178,749 |
192,278 | ||||
Noncurrent |
||||||||
Social contribution to be offset - Social Contribution |
- |
- |
31,637 |
29,999 | ||||
Income tax to be offset - Income tax |
- |
- |
1,001 |
1,001 | ||||
Social integration program - PIS |
2,787 |
2,787 |
2,787 |
2,787 | ||||
ICMS to be offset |
- |
- |
94,128 |
74,212 | ||||
Other |
- |
- |
6,433 |
5,236 | ||||
Total |
2,787 |
2,787 |
135,986 |
113,235 | ||||
( 10 ) DEFERRED TAXES
10.1- Composition of the tax credits:
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: September 30, 2010
Parent Company |
Consolidated | |||||||
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 | |||||
Social contribution credit |
||||||||
Tax loss carryforwards |
40,393 |
42,048 |
46,317 |
52,174 | ||||
Tax benefit of merged goodwill |
- |
- |
177,528 |
191,184 | ||||
Temporarily non-deductible differences |
1,987 |
833 |
(11,266) |
(3,941) | ||||
Subtotal |
42,380 |
42,881 |
212,579 |
239,417 | ||||
Income tax credit |
||||||||
Tax losses |
122,267 |
128,553 |
126,062 |
132,471 | ||||
Tax benefit of merged goodwill |
- |
- |
597,728 |
641,757 | ||||
Temporarily non-deductible differences |
8,128 |
4,765 |
(31,249) |
(11,081) | ||||
Subtotal |
130,395 |
133,318 |
692,541 |
763,147 | ||||
PIS and COFINS credit |
||||||||
Temporary non-deductible differences |
- |
- |
(3,176) |
2,231 | ||||
Total |
172,775 |
176,199 |
901,944 |
1,004,795 | ||||
Total tax credit |
172,775 |
176,199 |
1,182,177 |
|
1,286,805 | |||
Total tax debit |
- |
- |
(280,233) |
(282,010) |
10.2 - Tax Benefit on Merged Goodwill:
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: September 30, 2010
Consolidated | ||||||||
September 30, 2010 |
December 31, 2009 | |||||||
Social Contribution |
Income tax |
Social Contribution |
Income tax | |||||
CPFL Paulista |
96,872 |
269,089 |
103,736 |
288,152 | ||||
CPFL Piratininga |
21,758 |
74,659 |
23,207 |
79,630 | ||||
RGE |
41,933 |
173,171 |
44,378 |
183,269 | ||||
CPFL Santa Cruz |
4,764 |
15,938 |
5,862 |
18,435 | ||||
CPFL Leste Paulista |
3,003 |
8,227 |
3,451 |
9,586 | ||||
CPFL Sul Paulista |
4,399 |
12,010 |
5,020 |
13,943 | ||||
CPFL Jaguari |
2,633 |
7,219 |
3,027 |
8,411 | ||||
CPFL Mococa |
1,711 |
4,672 |
1,966 |
5,461 | ||||
CPFL Geração |
- |
31,502 |
- |
33,379 | ||||
CPFL Serviços |
455 |
1,241 |
537 |
1,491 | ||||
Total |
177,528 |
597,728 |
191,184 |
641,757 | ||||
The tax benefit on merged goodwill refers to the tax credit calculated on the merged goodwill on acquisition 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 that gave rise to it, in accordance with the projected net income of the subsidiaries during the remaining term of the concession, as shown in Note 14.
10.3 – Accumulated balances on temporary nondeductible differences:
Consolidated | ||||||||||||
September 30, 2010 |
December 31, 2009 | |||||||||||
Social Contribution |
Income tax |
PIS/COFINS |
Social Contribution |
Income tax |
PIS/COFINS | |||||||
Temporary non-deductible differences: |
||||||||||||
Provision for contingencies |
20,867 |
58,202 |
- |
21,884 |
60,454 |
- | ||||||
Private pension fund |
3,318 |
10,216 |
- |
4,097 |
12,377 |
- | ||||||
Allowance for doubtful accounts |
8,886 |
20,784 |
- |
7,389 |
20,927 |
- | ||||||
Free energy provision |
3,594 |
9,980 |
- |
2,410 |
6,694 |
- | ||||||
Research and Development and Energy Efficiency Programs |
16,021 |
44,496 |
- |
16,736 |
46,477 |
- | ||||||
Profit-sharing |
876 |
5,459 |
- |
1,986 |
6,267 |
- | ||||||
Depreciation rate difference - Revaluation |
9,462 |
26,282 |
- |
9,898 |
27,494 |
- | ||||||
Financial instruments (IFRS / CPC) |
3,054 |
8,483 |
- |
832 |
2,255 |
- | ||||||
Recognition of the concession - adjustment of intangible assets (IFRS / CPC) |
5,873 |
16,315 |
- |
(4,025) |
(11,183) |
- | ||||||
Reversal of regulatory assets and liabilities (IFRS / CPC) |
(4,714) |
(13,095) |
(4,467) |
1,561 |
4,337 |
1,607 | ||||||
Actuarial losses on the transition of accounting practices (IFRS/CPC) |
25,938 |
72,050 |
- |
26,042 |
72,340 |
- | ||||||
Other adjustments changes in practices |
(1,412) |
(5,375) |
868 |
13 |
36 |
473 | ||||||
Other |
3,835 |
11,798 |
423 |
6,387 |
15,860 |
151 | ||||||
Temporarily non-deductible differences - comprehensive income: |
||||||||||||
Recognition of the concession - financial adjustment (IFRS / CPC) |
(24,667) |
(68,518) |
- |
(18,019) |
(50,051) |
- | ||||||
Property, plant and equipment - deemed cost adjustments (IFRS/CPC) |
(82,197) |
(228,325) |
- |
(81,132) |
(225,365) |
- | ||||||
Total |
(11,266) |
(31,249) |
(3,176) |
(3,941) |
(11,081) |
2,231 | ||||||
10.4 - Reconciliation of the amounts of income tax and social contribution reported in the quarters ended September 30, 2010 and 2009:
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: September 30, 2010
Parent Company |
Parent Company | |||||||||||||||
3rd quarter 2010 |
Nine month 2010 |
3rd quarter 2009 |
Nine month 2009 | |||||||||||||
Social Contribution |
Income tax |
Social Contribution |
Income tax |
Social Contribution |
Income tax |
Social Contribution |
Income tax | |||||||||
Income before taxes |
341,994 |
341,994 |
1,204,111 |
1,204,111 |
447,098 |
447,098 |
1,144,610 |
1,144,610 | ||||||||
Adjustments to reflect effective rate: |
||||||||||||||||
- Equity in subsidiaries |
(383,620) |
(383,620) |
(1,341,540) |
(1,341,540) |
(487,990) |
(487,990) |
(1,291,243) |
(1,291,243) | ||||||||
- Amortization of intangible asset acquired |
28,945 |
36,255 |
86,836 |
108,495 |
30,330 |
37,187 |
90,990 |
111,561 | ||||||||
- Other permanent additions, net |
(172) |
3,807 |
400 |
2,976 |
626 |
574 |
2,573 |
2,543 | ||||||||
- Receita JSCP |
- |
- |
98,669 |
98,669 |
- |
- |
102,134 |
102,134 | ||||||||
Calculation base |
(12,853) |
(1,564) |
48,476 |
72,711 |
(9,936) |
(3,131) |
49,064 |
69,605 | ||||||||
Statutory rate |
9% |
25% |
9% |
25% |
9% |
25% |
9% |
25% | ||||||||
Tax debit result |
1,157 |
391 |
(4,363) |
(18,178) |
894 |
783 |
(4,416) |
(17,401) | ||||||||
- Tax credit allocated |
- |
606 |
606 |
- |
(9) |
- | ||||||||||
Total |
1,157 |
997 |
(4,363) |
(17,572) |
894 |
774 |
(4,416) |
(17,401) | ||||||||
Current |
499 |
(203) |
(3,862) |
(14,647) |
652 |
361 |
(3,046) |
(14,522) | ||||||||
Deferred |
658 |
1,200 |
(501) |
(2,925) |
242 |
413 |
(1,370) |
(2,879) | ||||||||
Consolidated |
Consolidated | |||||||||||||||
3rd quarter 2010 |
Nine month 2010 |
3rd quarter 2009 |
Nine month 2009 | |||||||||||||
Social Contribution |
Income tax |
Social Contribution |
Income tax |
Social Contribution |
Income tax |
Social Contribution |
Income tax | |||||||||
Income before taxes |
548,899 |
548,899 |
1,868,551 |
1,868,551 |
705,047 |
705,047 |
1,781,921 |
1,781,921 | ||||||||
Adjustments to reflect effective rate: |
||||||||||||||||
- Amortization of intangible asset acquired |
28,945 |
36,478 |
86,836 |
109,164 |
30,330 |
37,585 |
90,990 |
112,756 | ||||||||
- Realization CMC |
2,449 |
- |
8,590 |
- |
2,172 |
- |
9,251 |
- | ||||||||
- Effect of presumed profit system |
(12,490) |
(14,176) |
(21,312) |
(24,792) |
(10,513) |
(12,301) |
(30,328) |
(34,670) | ||||||||
- Other permanent additions/(eliminations), net |
4,840 |
(752) |
4,438 |
(19,081) |
14,463 |
(11,420) |
23,947 |
(4,733) | ||||||||
Calculation base |
572,643 |
570,449 |
1,947,103 |
1,933,842 |
741,499 |
718,911 |
1,875,781 |
1,855,274 | ||||||||
Statutory rate |
9% |
25% |
9% |
25% |
9% |
25% |
9% |
25% | ||||||||
Tax credit result |
(51,538) |
(142,612) |
(175,239) |
(483,461) |
(66,735) |
(179,728) |
(168,820) |
(463,819) | ||||||||
- Tax credit allocated |
(1,103) |
(2,865) |
(3,077) |
(8,360) |
(295) |
(605) |
(1,347) |
(3,057) | ||||||||
Total |
(52,641) |
(145,477) |
(178,316) |
(491,821) |
(67,030) |
(180,333) |
(170,167) |
(466,876) | ||||||||
Current |
(53,610) |
(150,069) |
(156,746) |
(435,890) |
(28,528) |
(73,262) |
(97,676) |
(263,406) | ||||||||
Deferred |
969 |
4,592 |
(21,570) |
(55,931) |
(38,502) |
(107,071) |
(72,491) |
(203,470) |
( 11 ) FINANCIAL ASSET OF CONCESSION
|
Consolidated |
At December 31, 2009 |
674,029 |
Additions |
12,222 |
Marked to market |
19,352 |
Disposal |
(30) |
At March 31, 2010 |
705,573 |
Additions |
37,163 |
Marked to market |
20,234 |
Disposal |
(71) |
At June 30, 2010 |
762,899 |
Additions |
46,546 |
Marked to market |
16,370 |
Disposal |
(349) |
At September 30, 2010 |
825,466 |
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: September 30, 2010
The balance refers to the fair value of the financial asset in relation to the right established in the concession agreements of the energy distributors to receive payment on reversal of the assets at the end of the concession.
Under the current tariff model, interest on the asset is recognized in profit or loss on billing of the consumers and realized on receipt of the electric energy bills. The difference in relation to the adjustment to market value is recognized against the revaluation reserve in equity.
( 12 ) OTHER CREDITS
Consolidated | ||||||||
Current |
Noncurrent | |||||||
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 | |||||
Receivables from CESP |
- |
8,923 |
- |
- | ||||
Receivables from BAESA's shareholders |
17,425 |
15,503 |
3,272 |
15,503 | ||||
Advances - Fundação CESP |
8,290 |
6,299 |
- |
- | ||||
Advances to suppliers |
13,158 |
6,134 |
- |
- | ||||
Pledges, funds and tied deposits |
3,197 |
1,804 |
75,982 |
99,762 | ||||
Fund tied to foreign currency loans |
- |
- |
21,578 |
19,148 | ||||
Orders in progress |
10,753 |
4,484 |
- |
- | ||||
Services rendered to third parties |
59,755 |
48,845 |
- |
- | ||||
Reimbursement RGR |
4,537 |
5,504 |
1,611 |
1,611 | ||||
Advance energy purchase agreements |
12,513 |
13,989 |
69,048 |
61,847 | ||||
Prepaid expenses |
42,168 |
14,351 |
4,045 |
6,573 | ||||
Collection agreements |
27,131 |
4,263 |
- |
- | ||||
Other |
29,237 |
26,461 |
106,759 |
32,585 | ||||
Total |
228,164 |
156,560 |
282,295 |
237,029 | ||||
( 13 ) INVESTMENTS
Parent Company | ||||
September 30, 2010 |
December 31, 2009 | |||
Permanent equity interests - equity method |
||||
By equity method of the subsidiary |
4,348,327 |
4,493,465 | ||
Value-added of assets, net |
1,431,115 |
1,508,764 | ||
Goodwill |
6,055 |
4,048 | ||
Total |
5,785,497 |
6,006,277 | ||
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: September 30, 2010
13.1 - Permanent Equity Interests – equity method:
The main information on the investments in direct permanent equity interests is as follows:
September 30, 2010 |
September 30, 2010 |
December 31, 2009 |
3rd quarter 2010 |
3rd quarter 2009 | ||||||||||||
Investment |
Number of shares held (thousands) |
Capital |
Shareholders' Equity |
Profit or loss for the year |
Shareholders Equity Interest |
Equity in Subsidiaries | ||||||||||
CPFL Paulista |
72,650 |
109,810 |
653,436 |
545,265 |
653,436 |
689,479 |
125,155 |
224,360 | ||||||||
CPFL Piratininga |
53,031,259 |
70,587 |
314,505 |
221,130 |
314,505 |
278,139 |
61,067 |
66,475 | ||||||||
RGE |
807,168 |
867,604 |
1,133,844 |
189,808 |
1,133,844 |
1,147,092 |
73,414 |
36,671 | ||||||||
CPFL Santa Cruz |
371,772 |
45,330 |
96,927 |
14,838 |
96,927 |
110,228 |
3,320 |
8,933 | ||||||||
CPFL Leste Paulista |
895,373 |
12,217 |
64,999 |
11,668 |
64,999 |
64,713 |
3,481 |
3,931 | ||||||||
CPFL Jaguari |
211,844 |
5,716 |
39,993 |
8,500 |
39,993 |
39,802 |
2,588 |
1,585 | ||||||||
CPFL Sul Paulista |
445,317 |
10,000 |
57,631 |
11,627 |
57,631 |
53,208 |
3,847 |
3,560 | ||||||||
CPFL Mococa |
116,989 |
9,850 |
34,810 |
6,985 |
34,810 |
33,566 |
1,931 |
2,448 | ||||||||
CPFL Geração |
205,487,716 |
1,039,618 |
1,845,667 |
164,268 |
1,845,667 |
1,913,900 |
51,729 |
76,000 | ||||||||
CPFL Brasil |
2,999 |
2,999 |
55,025 |
153,852 |
55,025 |
114,116 |
49,953 |
61,848 | ||||||||
CPFL Atende (*) |
1 |
1 |
(1,158) |
101 |
(1,158) |
(1,259) |
734 |
6 | ||||||||
CPFL Planalto (*) |
630 |
630 |
3,539 |
8,301 |
3,539 |
4,782 |
2,907 |
1,603 | ||||||||
CPFL Serviços |
1,443,141 |
5,800 |
3,498 |
1,036 |
3,498 |
2,351 |
1,391 |
(1,950) | ||||||||
CPFL Jaguariuna |
189,620 |
2,481 |
1,818 |
(362) |
1,818 |
2,180 |
(250) |
6 | ||||||||
CPFL Jaguari Geração |
40,072 |
40,108 |
43,793 |
5,909 |
43,793 |
41,168 |
2,353 |
2,514 | ||||||||
Total |
4,348,327 |
4,493,465 |
383,620 |
487,990 | ||||||||||||
(*) Number of quotes |
||||||||||||||||
The capital and shareholders' equity of the subsidiary Chumpitaz is R$ 100.00 (one hundred reais) |
||||||||||||||||
At September 30, 2010, the Parent Company had 100% of all subsidiaries capital |
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$2,008). The exchange ratios were established based on economic reports.
13.2 – Interest on Shareholders’ Equity and Dividends Receivable:
53
(Free Translation of the original in Portuguese)
FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
|
|
Parent Company | ||||||||||
|
|
Dividend |
|
Interest on shareholders' equity |
Total | |||||||
Subsidiaries |
|
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 | |||||
CPFL Paulista |
|
237,000 |
- |
|
- |
- |
237,000 |
- | ||||
CPFL Piratininga |
|
60,000 |
132,706 |
|
- |
6,123 |
60,000 |
138,829 | ||||
RGE |
|
- |
41,002 |
|
- |
- |
- |
41,002 | ||||
CPFL Santa Cruz |
|
12,000 |
7,000 |
|
- |
- |
12,000 |
7,000 | ||||
CPFL Geração |
|
85,000 |
- |
|
- |
- |
85,000 |
- | ||||
CPFL Brasil |
|
75,000 |
|
- |
|
- |
- |
75,000 |
- | |||
CPFL Leste Paulista |
|
- |
3,582 |
|
- |
1,375 |
- |
4,957 | ||||
CPFL Sul Paulista |
|
- |
4,800 |
|
- |
1,036 |
- |
5,836 | ||||
CPFL Mococa |
|
3,000 |
500 |
|
- |
- |
3,000 |
500 | ||||
CPFL Serviços |
|
3,648 |
3,648 |
|
- |
- |
3,648 |
3,648 | ||||
|
|
475,648 |
193,238 |
- |
8,534 |
475,648 |
201,772 | |||||
|
|
|
|
|
In this quarter, the Company received from the amount of R$ 754,785 related to dividend and interest on shareholders’ equity declared in 2009 and proposed in the first 6 months of 2010.
13.3 – Added value on assets and goodwill
Added value on assets refers mainly to the right to exploit the concession acquired through business combinations. The goodwill relates mainly to the acquisition of investments, based on projections of future income.
The amounts have been reclassified to intangible assets in the consolidated financial statements.
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: September 30, 2010
( 14 ) PROPERTY, PLANT AND EQUIPMENT
Consolidated | ||||||||
September 30, 2010 |
December 31, 2009 | |||||||
Historic cost |
Accumulated depreciation |
Net Value |
Net Value | |||||
In Service |
||||||||
- Generation |
4,536,392 |
(696,879) |
3,839,513 |
3,896,161 | ||||
- Commercialization |
22,508 |
(7,947) |
14,561 |
12,490 | ||||
- Administration |
2,239 |
(1,044) |
1,295 |
934 | ||||
4,561,239 |
(705,870) |
3,855,369 |
3,909,585 | |||||
In Progress |
||||||||
- Generation |
1,689,402 |
- |
1,689,402 |
1,289,779 | ||||
- Commercialization |
57,531 |
- |
57,531 |
13,002 | ||||
- Administration |
881 |
- |
881 |
673 | ||||
1,747,814 |
- |
1,747,814 |
1,303,454 | |||||
Total |
5,603,183 |
5,213,039 | ||||||
As mentioned in item 3.4, assets not acquired recently were measured at deemed cost at the transition date, while the assets of recently-built plants are recognized at cost, which in Management’s opinion, approximates market value. Property, plant and equipment were valuated to their market values based on an appraisal carried out by an independent engineering company specializing in equity valuation. Added value of R$ 1,002,991 was determined at January 1, 2009 and recognized in the revaluation reserve in equity.
There were no changes on depreciation rates for the period presented.
Construction in progress - the consolidated balance mainly refers to work in progress of the operating subsidiaries and/or those under development, particularly the EPASA and Foz do Chapecó generation projects, with total property, plant and equipment of R$ 2,496,875 and R$ 515,444, respectively, (R$ 1,273,406 and R$ 262,876 in proportion to the participation of the subsidiary CPFL Geração). The greatest additions to property, plant and equipment in progress refer to construction of Foz do Chapecó, EPASA and wind-power Santa Clara plants, which contributed to increases of R$ 228,865, R$ 76,736 and R$ 68,993, respectively. Write-offs during the quarter were not significant.
In conformity with CPC 20, the interest on the loans taken out by the projects to finance the construction is capitalized during the construction phase. For further details of construction assets and fund raising costs, see notes 1, 16 and 17.
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: September 30, 2010
( 15 ) INTANGIBLE ASSETS
Consolidated | |||||||
September 30, 2010 |
December 31, 2009 | ||||||
Historic cost |
Accumulated amortization |
Net value |
Net value | ||||
Goodwill |
6,055 |
- |
6,055 |
4,048 | |||
Intangible assets - Concession rights: |
|||||||
Acquired in business combinations |
3,726,246 |
(1,646,919) |
2,079,327 |
2,185,780 | |||
Distribution infrastructure - operational |
8,001,387 |
(4,827,293) |
3,174,094 |
2,879,341 | |||
Distribution infrastructure - in progress |
652,976 |
- |
652,976 |
521,147 | |||
Public utility |
405,611 |
(6,515) |
399,096 |
392,221 | |||
Other intangible assets |
153,255 |
(47,909) |
105,346 |
80,564 | |||
Total intangible assets |
12,945,530 |
(6,528,636) |
6,416,894 |
6,063,101 | |||
Historic cost |
12,945,530 |
12,209,040 | |||||
Accumulated amortization |
(6,528,636) |
(6,145,939) | |||||
6,416,894 |
6,063,101 |
The main additions during this semester refer to construction of distribution infrastructure. Distribution infrastructure in progress increased R$ 361,823. However, transfers of R$ 285,435 to the distribution infrastructure in service account and R$ 43,641 to concession financial assets contributed towards reducing the open balance as at September, 2010. The other changes basically refer to amounts for amortization for the quarter, which continues to be consistent with the practices described in Note 3.
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: September 30, 2010
( 16 ) INTEREST ON DEBTS, LOANS AND FINANCING
Consolidated | ||||||||||||||||
September 30, 2010 |
|
December 31, 2009 | ||||||||||||||
Interest - Current and Noncurrent |
Principal |
Total |
Interest - Current and Noncurrent |
Principal |
Total | |||||||||||
Current |
Noncurrent |
Current |
Noncurrent |
|||||||||||||
At cost |
||||||||||||||||
LOCAL CURRENCY |
||||||||||||||||
BNDES - Power Increases |
57 |
5,680 |
9,437 |
15,174 |
86 |
7,321 |
13,538 |
20,945 | ||||||||
BNDES - Investment |
11,940 |
327,802 |
2,726,259 |
3,066,001 |
11,204 |
362,902 |
2,476,242 |
2,850,348 | ||||||||
BNDES - Other |
725 |
43,988 |
119,086 |
163,799 |
49 |
661 |
5,628 |
6,338 | ||||||||
Furnas Centrais Elétricas S.A. |
- |
- |
- |
- |
379 |
46,028 |
- |
46,407 | ||||||||
Financial Institutions |
52,418 |
144,079 |
1,204,728 |
1,401,225 |
10,408 |
194,766 |
164,054 |
369,228 | ||||||||
Other |
787 |
26,221 |
51,304 |
78,312 |
554 |
22,174 |
30,693 |
53,421 | ||||||||
Subtotal |
65,927 |
547,770 |
4,110,814 |
4,724,511 |
22,680 |
633,852 |
2,690,155 |
3,346,687 | ||||||||
FOREIGN CURRENCY |
||||||||||||||||
IDB |
247 |
3,789 |
47,120 |
51,156 |
260 |
3,652 |
51,379 |
55,291 | ||||||||
Financial Institutions |
1,017 |
3,814 |
43,341 |
48,172 |
541 |
3,920 |
46,503 |
50,964 | ||||||||
Subtotal |
1,264 |
7,603 |
90,461 |
99,328 |
801 |
7,572 |
97,882 |
106,255 | ||||||||
Total at cost |
67,191 |
555,373 |
4,201,275 |
4,823,839 |
23,481 |
641,424 |
2,788,037 |
3,452,942 | ||||||||
At Fair Value |
||||||||||||||||
FOREIGN CURRENCY |
||||||||||||||||
Financial Institutions |
7,126 |
- |
413,492 |
420,618 |
66,608 |
87,490 |
941,005 |
1,095,103 | ||||||||
Total |
7,126 |
- |
413,492 |
|
420,618 |
66,608 |
87,490 |
941,005 |
1,095,103 | |||||||
Total |
74,317 |
555,373 |
4,614,767 |
5,244,457 |
90,089 |
728,914 |
3,729,042 |
4,548,045 | ||||||||
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: September 30, 2010
Consolidated |
|||||||||||
At cost |
September 30, 2010 |
December 31, 2009 |
|
Remuneration |
Amortization |
Collateral | |||||
Local currency |
|||||||||||
BNDES - Power Increases |
|||||||||||
CPFL Geração |
15,174 |
20,847 |
TJLP + 3.1% to 4.3% |
36 to 84 monthly installments from February 2003 to December 2008 |
Guarantee of CPFL Paulista and CPFL Energia | ||||||
CPFL Geração |
- |
98 |
UMBND + 4.0% |
72 monthly installments from September 2004 |
Guarantee of CPFL Paulista and CPFL Energia | ||||||
|
|||||||||||
BNDES - Investment |
|
||||||||||
CPFL Paulista - FINEM II |
15,909 |
63,655 |
TJLP + 5.4% |
48 monthly installments from January 2007 |
Guarantee of CPFL Energia and receivables | ||||||
CPFL Paulista - FINEM III |
87,414 |
107,614 |
TJLP + 3.3% |
72 monthly installments from January 2008 |
Guarantee of CPFL Energia and receivables | ||||||
CPFL Paulista - FINEM IV |
272,540 |
237,325 |
TJLP + 3.28% to 3.4% |
60 monthly installments from January 2010 |
Guarantee of CPFL Energia and receivables | ||||||
CPFL Paulista - FINAME |
6,821 |
- |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
Guarantee of CPFL Energia | ||||||
CPFL Piratininga - FINEM I |
5,924 |
23,702 |
TJLP + 5.4% |
48 monthly installments from January 2007 |
Guarantee of CPFL Energia and receivables | ||||||
CPFL Piratininga - FINEM II |
|
51,928 |
|
63,927 |
|
|
TJLP + 3.3% |
|
72 monthly installments from January 2008 |
Guarantee of CPFL Energia and receivables | |
CPFL Piratininga - FINEM III |
|
113,600 |
|
104,990 |
|
|
TJLP + 3.28% to 3.4% |
|
60 monthly installments from January 2010 |
Guarantee of CPFL Energia and receivables | |
CPFL Piratininga - FINAME |
|
16,921 |
|
- |
|
|
Fixed rate 4.5% |
|
96 monthly installments from January 2012 |
Guarantee of CPFL Energia | |
RGE - FINEM III |
|
50,450 |
|
67,285 |
|
|
TJLP + 5.0% |
|
60 monthly installments from January 2008 |
Receivables / Reserve account | |
RGE - FINEM IV |
|
173,486 |
|
173,424 |
|
|
TJLP + 3.28 to 3.4% |
|
60 monthly installments from January 2010 |
Receivables / Guarantee of CPFL Energia | |
RGE - FINAME |
|
3,409 |
|
- |
|
|
Fixed rate 4.5% |
|
96 monthly installments from January 2012 |
Guarantee of CPFL Energia | |
CPFL Santa Cruz |
|
9,346 |
|
2,255 |
|
|
TJLP + 2.90% |
|
54 monthly installments from December 2010 |
Guarantee of CPFL Energia | |
CPFL Mococa |
|
3,206 |
|
3,018 |
|
|
TJLP + 2.9% |
|
54 monthly installments from January 2011 |
Guarantee of CPFL Energia and receivables | |
CPFL Jaguari |
|
2,499 |
|
2,498 |
|
|
TJLP + 2.9% |
|
54 monthly installments from December 2010 |
Guarantee of CPFL Energia and receivables | |
CPFL Leste Paulista |
|
3,262 |
|
2,024 |
|
|
TJLP + 2.9% |
|
54 monthly installments from June 2011 |
Guarantee of CPFL Energia and receivables | |
CPFL Sul Paulista |
|
4,736 |
|
3,350 |
|
|
TJLP + 2.9% |
|
54 monthly installments from June 2011 |
Guarantee of CPFL Energia and receivables | |
BAESA |
|
124,241 |
|
136,045 |
|
|
TJLP + 3.125% to 4.125% |
|
144 monthly installments from September 2006 |
Pledge of shares, credit rights and revenue | |
BAESA |
|
25,331 |
|
28,058 |
|
|
UMBND + 3.125% (1) |
|
144 monthly installments from November 2006 |
Pledge of shares, credit rights and revenue | |
ENERCAN |
|
282,220 |
|
307,203 |
|
|
TJLP + 4% |
|
144 monthly installments from April 2007 |
Letters of Credit | |
ENERCAN |
|
16,669 |
|
18,557 |
|
|
UMBND + 4% |
|
144 monthly installments from April 2007 |
Letters of Credit | |
CERAN |
|
391,296 |
|
417,440 |
|
|
TJLP + 5% |
|
168 monthly installments from December 2005 |
Guarantee of CPFL Energia | |
CERAN |
|
56,285 |
|
60,981 |
|
|
UMBND + 5% (1) |
|
168 monthly installments from February 2006 |
Guarantee of CPFL Energia | |
CERAN |
|
178,315 |
|
189,283 |
|
|
TJLP + 3.69% (Average of percentage) |
|
168 monthly installments from November 2008 |
Guarantee of CPFL Energia | |
Foz do Chapecó |
|
975,131 |
|
792,209 |
|
|
TJLP + 2.49% to 2.95% |
|
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 - FINEM |
|
37,614 |
|
15,248 |
|
|
TJLP + 1.9% |
|
144 monthly installments from June 2011 |
Trust property, credit rights and guarantee of CPFL Energia | |
CPFL Bioenergia - FINAME |
|
38,378 |
|
30,257 |
|
|
Fixed rate 4.5% |
|
102 monthly installments from June 2011 |
Trust property, credit rights and guarantee of CPFL Energia | |
EPASA - BNB |
|
89,126 |
|
- |
|
|
Fixed rate 10% |
|
132 monthly installments from January 2013 |
Guarantee of CPFL Energia | |
|
|
|
|
|
|
|
|
|
| ||
BNDES - Other |
|
|
|
|
|
|
|
|
| ||
CPFL Brasil - Purchase of assets |
|
6,448 |
|
6,338 |
|
|
TJLP + from 1.94% to 2.5% |
|
36 monthly installments from May 2009 |
Linked to the asset acquired | |
CPFL Piratininga - Working capital |
|
53,030 |
|
- |
|
|
TJLP + 5.0% |
|
32 monthly installments from February 2011 |
No guarantee | |
CPFL Geração - FINEM - Capital de Giro |
|
51,837 |
|
- |
|
|
TJLP + 4.95% |
|
24 monthly installments from February 2011 |
Guarantee of CPFL Energia | |
CPFL Geração - FINAME - Capital de Giro |
|
52,484 |
|
- |
|
|
TJLP + 4.95% (3) |
|
23 monthly installments from February 2011 |
Guarantee of CPFL Energia | |
|
|
|
|
|
|
|
|
|
| ||
Furnas Centrais Elétricas S.A. |
|
|
|
|
|
|
|
|
| ||
CPFL Geração |
|
- |
|
46,407 |
|
|
IGP-M + 10% (2) |
|
24 monthly installments from June 2008 |
Energy produced by plant | |
|
|
|
|
|
|
|
|
|
| ||
Financial Institution |
|
|
|
|
|
|
|
|
| ||
CPFL Paulista |
|
|
|
|
|
|
|
|
| ||
Banco do Brasil - Law 8727 |
|
36,014 |
|
39,314 |
|
|
IGP-M + 7.42% |
|
240 monthly installments from May 1994 |
Receivables | |
Banco do Brasil |
|
107,593 |
|
- |
|
|
107% of CDI |
|
1 installment in April 2015 |
Guarantee of CPFL Energia | |
Banco do Brasil-Crédito Rural (*) |
|
194,303 |
|
- |
|
|
98.50% of CDI |
|
4 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Piratininga |
|
|
|
|
|
|
|
|
| ||
Banco Alfa |
|
- |
|
50,017 |
|
|
105.1% of CDI |
|
1 installment in April 2010 |
No guarantee | |
Banco do Brasil - Crédito Rural (*) |
|
17,871 |
|
- |
|
|
98.5% of CDI |
|
4 annual installments from July 2012 |
Guarantee of CPFL Energia | |
RGE |
|
|
|
|
|
|
|
|
| ||
Banco do Brasil - Crédito Rural (*) |
|
230,479 |
|
- |
|
|
98.5% of CDI |
|
2 and 4 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Brasil |
|
|
|
|
|
|
|
|
| ||
FINEP |
|
3,682 |
|
- |
|
|
5% Pré-fixada |
|
81 monthly installments from August 2011 |
Recebíveis | |
CPFL Santa Cruz |
|
|
|
|
|
|
|
|
| ||
HSBC |
|
43,958 |
|
40,747 |
|
|
CDI + 1.10% |
|
1 installment in June 2011 |
Guarantee of CPFL Energia | |
Banco do Brasil - Crédito Rural (*) |
|
16,182 |
|
- |
|
|
98.5% of CDI |
|
2 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Sul Paulista |
|
|
|
|
|
|
|
|
| ||
Banco do Brasil - Crédito Rural (*) |
|
10,013 |
|
- |
|
|
98.5% of CDI |
|
2 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Leste Paulista |
|
|
|
|
|
|
|
|
| ||
Banco do Brasil - Crédito Rural (*) |
|
16,637 |
|
- |
|
|
98.5% of CDI |
|
2 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Mococa |
|
- |
|
|
|
|
|
|
| ||
Banco do Brasil - Crédito Rural (*) |
|
8,394 |
|
- |
|
|
98.5% of CDI |
|
2 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Jaguari |
|
|
|
|
|
|
|
|
| ||
Banco do Brasil - Crédito Rural (*) |
|
1,769 |
|
- |
|
|
98.5% of CDI |
|
2 annual installments from July 2012 |
Guarantee of CPFL Energia | |
CPFL Geração |
|
|
|
|
|
|
|
|
| ||
Banco Itaú BBA |
|
100,639 |
|
102,750 |
|
|
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 do Brasil |
|
643,603 |
|
- |
|
|
107.0% of CDI |
|
1 installment in April 2015 |
Guarantee of CPFL Energia | |
Banco Alfa |
|
- |
|
|
|
105.1% of CDI |
|
1 installment in April 2010 |
Guarantee of CPFL Energia | ||
CERAN |
|
|
|
|
|
|
|
|
| ||
Banco Bradesco |
|
8,078 |
|
36,915 |
|
|
CDI + 2% |
|
24 monthly installments from November 2008 |
No guarantee | |
Banco Bradesco |
|
15,004 |
|
- |
|
|
CDI + 1.75% |
|
1 installment in April 2012 |
Não existem garantias | |
|
| ||||||||||
Other |
|
| |||||||||
Eletrobrás |
|
| |||||||||
CPFL Paulista |
6,114 |
8,648 |
RGR + 6.0% to 9.0% |
Monthly installments until July 2016 |
Receivables and Notas Promissórias | ||||||
CPFL Piratininga |
1,048 |
1,415 |
RGR + 6% |
Monthly installments until July 2016 |
Receivables and Notas Promissórias | ||||||
RGE |
18,619 |
12,095 |
RGR + 6% |
Monthly installments until June 2020 |
Receivables and Notas Promissórias | ||||||
CPFL Santa Cruz |
4,125 |
4,660 |
RGR + 6% |
Monthly installments until April 2018 |
Receivables and Notas Promissórias | ||||||
CPFL Leste Paulista |
1,127 |
1,011 |
RGR + 6% |
Monthly installments until February 2022 |
Receivables and Notas Promissórias | ||||||
CPFL Sul Paulista |
1,896 |
1,779 |
RGR + 6% |
Monthly installments until July 2018 |
Receivables and Notas Promissórias | ||||||
CPFL Jaguari |
113 |
31 |
RGR + 6% |
Monthly installments until May 2017 |
Receivables and Notas Promissórias | ||||||
CPFL Mococa |
424 |
285 |
RGR + 6% |
Monthly installments until February 2022 |
Receivables and Notas Promissórias | ||||||
Other |
21,796 |
23,497 |
| ||||||||
Local Currency - At cost |
4,724,511 |
3,346,687 |
| ||||||||
| |||||||||||
Foreign currency |
| ||||||||||
| |||||||||||
| |||||||||||
BID - Enercan |
51,156 |
55,291 |
US$ + Libor + 3.5% |
49 quarterly installments from June 2007 |
Guarantee of CPFL Energia | ||||||
Financial Institutions |
|
| |||||||||
CPFL Paulista (5) |
|
| |||||||||
Debt Conversion Bond |
4,062 |
5,207 |
US$ + Libor 6 month + 0.875% |
17 semiannual installments from April 2004 |
Revenue/Government SP guaranteed | ||||||
C-Bond |
7,466 |
8,462 |
US$ + 8% |
21 semiannual installments from April 2004 |
Revenue/Government SP guaranteed | ||||||
Discount Bond |
14,879 |
15,264 |
US$ + Libor 6 month + 0.8125% |
1 installment in April 2024 |
Escrow deposits and revenue/ Gov.SP guarantee | ||||||
PAR-Bond |
21,765 |
22,031 |
US$ + 6% |
1 installment in April 2024 |
Escrow deposits and revenue/ Gov.SP guarantee | ||||||
Foreign currency - At cost |
99,328 |
106,255 |
|||||||||
Total at cost |
4,823,839 |
|
3,452,942 |
||||||||
Foreign currency |
|
||||||||||
Measured at fair value |
|||||||||||
Financial Institutions |
|||||||||||
CPFL Paulista |
|||||||||||
Banco do Brasil |
- |
101,233 |
Yen + 5.7778% (3) |
1 installment in January 2011 |
No guarantee | ||||||
Banco ABN AMRO Real |
420,618 |
385,969 |
Yen +1.49% (4) |
1 installment in January 2012 |
No guarantee | ||||||
CPFL Geração |
|||||||||||
Banco do Brasil |
- |
101,332 |
Yen + 5.8% . (5) |
1 installment in April 2010 |
Guarantee of CPFL Energia | ||||||
Banco do Brasil |
- |
506,569 |
Yen + 2.5% to 5.8% . |
1 installment in January 2011 |
Guarantee of CPFL Energia | ||||||
Total Foreign Currency - Fair value |
420,618 |
1,095,103 |
|||||||||
Total Consolidated |
5,244,457 |
4,548,045 |
|||||||||
The Company and its subsdiaries hold swaps converting the local cost of currency variation to interest tax variation in reais, corresponding to |
|||||||||||
(1) 160.5% of CDI |
(3) 106.0% of CDI |
||||||||||
(2) 106.0% to 106.5% of CDI |
(4) 104.98% of CDI |
||||||||||
(5) As certain assets are dollar indexed, a partial swap of R$ 29,126 was contracted, converting the currency variation to 112.9 % of the CDI. | |||||||||||
(*) Effective rate : 98.5% CDI + 2.88% (CPFL Paulista and CPFL Piratininga) and 98.5% CDI + 2.5% (RGE) |
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: September 30, 2010
In conformity with CPCs 38 and 39 (Financial Instruments), the Company and its subsidiaries classified their debts, as (i) financial liabilities not measured at fair value (or measured at cost), and (ii) financial liabilities measured at fair value through profit or loss.
The objective of classification of financial liabilities measured at fair value is to compare the effects of recognition of income and expense derived from marking hedge derivatives to market, tied to the 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:
September 30, 2010 | ||||||||
Value at cost |
Fair value (accounting balance) | |||||||
Interest - Current and noncurrent |
Principal |
Total |
||||||
Foreign currency |
Noncurrent |
|||||||
At fair value |
||||||||
CPFL Paulista |
||||||||
Banco ABN AMRO Real |
7,126 |
416,885 |
424,011 |
420,618 | ||||
Subtotal Foreign currency - Consolidated |
7,126 |
416,885 |
424,011 |
420,618 |
The changes in the fair values of these debts are recognized in the financial income (expense) of the Company and its subsidiaries. The gains of R$ 3,393 obtained by marking the debts to market are offset by the effects of R$ 6,434 obtained by marking to market the derivative financial instruments contracted as a hedge against exchange variations (Note 31), resulting in a net accumulated loss of R$ 3,041.
Main funding in the period:
Local currency
BNDES/BNB – 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. The amount of R$ 63,924 was received during this quarter and the remaining estimated balance of R$ 37,101 will be cancelled.
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. The amount of R$ 24,767 was received during this quarter and the remaining balance of R$ 25,966 will be cancelled.
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: September 30, 2010
FINEM IV (RGE) – The subsidiary obtained approval for financing of R$ 216,131 from the BNDES in 2008, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System. The amount of R$ 26,526 was received during this quarter and the remaining balance of R$ 17,104 will be cancelled.
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$ 5,170 in this quarter and the remaining balance of R$ 85,376 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 (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$ 16,243 in this quarter and the remaining balance of R$ 31,225 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 (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$ 1,752 in this quarter and the remaining balance of R$ 29,015 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.
FINEM/FINAME (Bioenergia) – The indirect subsidiary obtained approval for financing of R$ 75,297 from the BNDES in 2009, comprised of R$ 37,491 from FINEM and R$ 37,806 from FINAME, to be invested in the construction of the Thermoelectric Plant. The amount of R$ 16,100 was received during this quarter and the remaining estimated balance of R$ 13,706 is scheduled to be released in the 4th quarter of 2010. The interest and principal will be paid monthly as from June, 2011.
BNDES – Investimento (Foz do Chapecó) – The indirect subsidiary obtained approval for financing of R$ 1,633,155 (R$ 832,909 in proportion to the Company's participation) from the BNDES in 2007, to be sed to finance the construction works of the Foz do Chapecó Hydroelectric Power Plant.. The amount of R$ 68,914 (R$ 35,146 in proportion to the Company's participation) was received during this quarter, this being final installment of this financing. The interest and principal will be paid monthly as from October 2011.
BNB – Investimento (EPASA) – In December 2009, the indirect subsidiary contracted a loan of R$ 214,278 (R$ 109,282 in proportion to the Company's participation) from Banco do Nordeste do Brasil - BNB, to be invested in the construction of the Termoparaíba and Termonordeste thermoelectric power plants. The amount of R$ 177,838 (R$ 90,697 in proportion to the Company's participation) was released in this quarter, and the release of the remaining balance is conditional upon: i) physical and financial verification of the funds obtained; and ii) increasing the capital in EPASA by R$ 91,834 (R$ 46,835 in proportion to the Company's participation). The interest will be paid quarterly until December 2012 and on a monthly basis as from January 2013. There are no restrictive covenants for this financing agreement.
Financial Institutions
Banco do Brasil – Crédito Rural (CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Mococa, CPFL Jaguari e CPFL Sul Paulista) - These subsidiaries obtained approval for financing, in the form of rural credit, with a total amount of R$ 499,800 (R$ 435,849 net of costs) released during this quarter to cover working capital. The interest will be capitalized monthly and amortized together with the installments of the principal.
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: September 30, 2010
ELETROBRÁS (RGE) – The subsidiary obtained approval for financing of R$ 25,251 from Eletrobras in 2008, the purpose of which is to finance part of the improvement works on the electricity system to bring electricity to rural areas (Universalization Program). The subsidiary received the amount of R$ 7,392 during this quarter and the remaining balance of R$ 9,147 was cancelled, in line with the physical execution of the works.
RESTRICTIVE COVENANTS
The loan from Banco do Brasil - Rural Credit is subject to certain restrictive covenants, including clauses that require the subsidiaries to maintain certain financial ratios within pre-established parameters. The ratio demanded is that of net indebtedness to EBITDA of 3.0 or less
The other 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 monitors these ratios 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.
( 17 ) DEBENTURES
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: September 30, 2010
Consolidated | ||||||||||||||||||||||||||
September 30, 2010 |
December 31, 2009 | |||||||||||||||||||||||||
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% (1) |
CDI + 0.53% |
3 annual installments from September 2012 |
Unsecured |
3,401 |
- |
450,000 |
453,401 |
12,788 |
- |
450,000 |
462,788 | |||||||||||||
CPFL Paulista |
||||||||||||||||||||||||||
3rd Issue |
||||||||||||||||||||||||||
1st Series |
64,000 |
104.4% of CDI |
104.4% CDI + 0.05% |
3 annual installments from December 2011 |
CPFL Energia guarantee |
22,618 |
- |
640,000 |
662,618 |
4,618 |
- |
640,000 |
644,618 | |||||||||||||
4ª Issue |
||||||||||||||||||||||||||
Single Series |
175,000 |
110.3% of CDI |
110.3% CDI + 0.79% |
2 annual installments from July 2010 |
CPFL Energia guarantee |
3,124 |
109,428 |
- |
112,552 |
8,285 |
64,303 |
109,601 |
182,189 | |||||||||||||
25,742 |
109,428 |
640,000 |
775,170 |
12,903 |
64,303 |
749,601 |
826,807 | |||||||||||||||||||
CPFL Piratininga |
||||||||||||||||||||||||||
1ª Issue |
||||||||||||||||||||||||||
1st Series |
40,000 |
104.0% of CDI |
104.0% CDI + 0.16% |
2 annual installments from January 2010 |
CPFL Energia guarantee |
5,351 |
200,000 |
- |
205,351 |
17,690 |
200,000 |
200,000 |
417,690 | |||||||||||||
2ª Issue |
||||||||||||||||||||||||||
Single Series |
1 |
106.45% of CDI . |
106.45% CDI + 0.3% |
02 de May 2011 |
Quirografária |
- |
- |
- |
- |
2,189 |
- |
100,000 |
102,189 | |||||||||||||
3rd Issue |
||||||||||||||||||||||||||
Single Series |
260 |
107.0% of CDI |
107.0% CDI + 0.67% |
April 1st, 2015 |
CPFL Energia guarantee |
13,514 |
- |
258,801 |
272,315 |
- |
- |
- |
- | |||||||||||||
18,865 |
200,000 |
258,801 |
477,666 |
19,879 |
200,000 |
300,000 |
519,879 | |||||||||||||||||||
RGE |
||||||||||||||||||||||||||
2ª Issue |
||||||||||||||||||||||||||
1st Series |
2,620 |
IGP-M + 9.6% |
IGP-M + 9.73% |
April 1st, 2011 |
Unsecured |
1,289 |
27,489 |
- |
28,778 |
1,630 |
- |
26,200 |
27,830 | |||||||||||||
3rd Issue |
||||||||||||||||||||||||||
1st Series |
1 |
CDI + 0.60% (2) |
CDI + 0.71% |
3 annual installments from December 2011 |
CPFL Energia guarantee |
3,591 |
- |
100,000 |
103,591 |
741 |
- |
100,000 |
100,741 | |||||||||||||
2nd Series |
1 |
CDI + 0.60% (3) |
CDI + 0.71% |
3 annual installments from December 2011 |
CPFL Energia guarantee |
3,818 |
- |
140,000 |
143,818 |
6,437 |
- |
140,000 |
146,437 | |||||||||||||
3rd Series |
1 |
CDI + 0.60% (4) |
CDI + 0.71% |
3 annual installments from December 2011 |
CPFL Energia guarantee |
720 |
- |
40,000 |
40,720 |
1,491 |
- |
40,000 |
41,491 | |||||||||||||
4th Series |
1 |
CDI + 0.60% (5) |
CDI + 0.84% |
3 annual installments from December 2011 |
CPFL Energia guarantee |
2,582 |
- |
50,000 |
52,582 |
1,103 |
- |
50,000 |
51,103 | |||||||||||||
5th Series |
1 |
CDI + 0.60% (5) |
CDI + 0.84% |
3 annual installments from December 2011 |
CPFL Energia guarantee |
2,582 |
- |
50,000 |
52,582 |
1,103 |
- |
50,000 |
51,103 | |||||||||||||
4ª Issue |
||||||||||||||||||||||||||
Single Series |
185,000 |
110.30% of CDI |
110.3% CDI + 0.82% |
July 1st, 2011 |
Unsecured |
5,254 |
184,433 |
- |
189,687 |
8,758 |
- |
183,804 |
192,562 | |||||||||||||
19,836 |
211,922 |
380,000 |
611,758 |
21,263 |
- |
590,004 |
611,267 | |||||||||||||||||||
CPFL Leste Paulista |
||||||||||||||||||||||||||
1ª Issue |
||||||||||||||||||||||||||
Single Series |
2,400 |
111.90% of CDI |
111.9% CDI + 0.65% |
July1st, 2011 |
CPFL Energia guarantee |
692 |
23,947 |
- |
24,639 |
1,153 |
- |
23,894 |
25,047 | |||||||||||||
CPFL Sul Paulista |
||||||||||||||||||||||||||
1ª Issue |
||||||||||||||||||||||||||
Single Series |
1,600 |
111.00% of CDI |
111% CDI + 0.6% |
July1st, 2011 |
CPFL Energia guarantee |
457 |
15,968 |
- |
16,425 |
762 |
- |
15,936 |
16,698 | |||||||||||||
CPFL Jaguari |
||||||||||||||||||||||||||
1ª Issue |
||||||||||||||||||||||||||
Single Series |
1,000 |
111.90% of CDI |
111.9% CDI + 0.79% |
July1st, 2011 |
CPFL Energia guarantee |
288 |
9,974 |
- |
10,262 |
480 |
- |
9,948 |
10,428 | |||||||||||||
CPFL Brasil |
||||||||||||||||||||||||||
1ª Issue |
||||||||||||||||||||||||||
Single Series |
16,500 |
111% of CDI |
111% CDI + 0.57% |
July 1st, 2011 |
CPFL Energia guarantee |
4,716 |
164,610 |
- |
169,326 |
7,862 |
- |
164,221 |
172,083 | |||||||||||||
CPFL Geração |
||||||||||||||||||||||||||
2ª Issue |
||||||||||||||||||||||||||
Single Series |
425,250 |
109.8% of CDI |
109.8% CDI + 0.58% |
July 1st, 2011 |
CPFL Energia guarantee |
12,021 |
423,954 |
- |
435,975 |
20,039 |
- |
423,295 |
443,334 | |||||||||||||
3rd Issue |
||||||||||||||||||||||||||
Single Series |
264 |
107.0% of CDI |
107.0% of CDI + 0.67% |
1 installment in April 2015 |
CPFL Energia guarantee |
13,722 |
- |
263,070 |
276,792 |
- |
- |
- |
- | |||||||||||||
EPASA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1ª Issue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Series |
|
450 |
|
112.6% of CDI |
|
116.9% of CDI |
|
1 installment in December 2010 |
|
CPFL Energia guarantee |
|
13,955 |
145,601 |
- |
159,556 |
|
3,504 |
|
228,473 |
|
- |
|
231,977 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
BAESA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Series |
|
9,000 |
|
CDI + 0.3% |
|
CDI + 0.43% |
|
Quarterly with settlement in August 2016 |
|
Letters of Guarantee |
|
519 |
3,164 |
15,821 |
19,504 |
|
308 |
|
3,164 |
|
18,195 |
|
21,667 | |||
2nd Series |
|
3,236 |
|
CDI + 0.4% |
|
106% CDI + 0.12% |
|
Annually with settlement in August 2016 |
|
Letters of Guarantee |
|
425 |
2,570 |
12,850 |
15,845 |
|
343 |
|
3,085 |
|
6,075 |
|
9,503 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
944 |
5,734 |
28,671 |
35,349 |
651 |
6,249 |
24,270 |
31,170 | |||||||||||||||||||
114,639 |
1,311,138 |
2,020,542 |
3,446,319 |
101,284 |
499,025 |
2,751,169 |
3,351,478 | |||||||||||||||||||
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 |
RESTRICTIVE COVENANTS
The debentures are subject to certain restrictive covenants, the details of which are set forth in the December 31, 2009 financial statements and in the Quarterly Information at June 30, 2010.
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 Management of the Company and its subsidiaries, these restrictive conditions and clauses are being adequately complied with.
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: September 30, 2010
( 18 ) SUPPLIERS
Consolidated | ||||
Current |
September 30, 2010 |
December 31, 2009 | ||
System Service Charges |
51,426 |
34,556 | ||
Energy Purchased |
740,944 |
658,068 | ||
Electricity Network Usage Charges |
136,828 |
121,801 | ||
Materials and Services |
178,058 |
143,180 | ||
Free energy |
68,504 |
61,341 | ||
Other |
1,229 |
2,506 | ||
Total |
1,176,989 |
1,021,452 | ||
Noncurrent |
||||
Electricity Network Usage Charges |
10,664 |
42,655 | ||
Total |
10,664 |
42,655 |
( 19 ) TAXES AND CONTRIBUTIONS PAYABLE
Consolidated | ||||||||
Current |
Noncurrent | |||||||
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 | |||||
ICMS (State VAT) |
289,186 |
315,906 |
- |
- | ||||
PIS (Tax on Revenue) |
12,809 |
11,762 |
- |
- | ||||
COFINS (Tax on Revenue) |
60,210 |
54,978 |
1,139 |
1,639 | ||||
Income tax (Corporate Income Tax) |
111,102 |
69,480 |
- |
- | ||||
Social Contribution (Social Contribution Tax) |
20,866 |
18,583 |
- |
- | ||||
Other |
30,795 |
27,901 |
- |
- | ||||
Total |
524,968 |
498,610 |
1,139 |
1,639 |
( 20 ) EMPLOYEE PENSION PLANS
The subsidiaries sponsor supplementary retirement and pension plans for their employees, with the following characteristics:
I – CPFL Paulista
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: September 30, 2010
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 September 30, 2010 is R$ 527,665 (R$ 508,706 in December 31, 2009). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CPC 33.
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 Piratininga’s 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 September 30, 2010 is R$ 155,668 (R$ 150,444 as of December 31, 2009). 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 – defined contribution) 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.
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: September 30, 2010
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.
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 September 30, 2010 is R$ 10,616 (R$ 18,354 as of December 31, 2009). The contract amount differs from the accounting recording of the subsidiary, which is in conformity with CPC 33.
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:
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: September 30, 2010
September 30, 2010 | ||||||||||||
CPFL |
CPFL |
CPFL |
Total Liability |
RGE |
Total Asset | |||||||
Paulista |
Piratininga |
Geração |
||||||||||
Actuarial liability (asset) at the beginning of the period |
591,712 |
141,964 |
13,774 |
747,450 |
(9,725) |
(9,725) | ||||||
Income (expense) recognized in income statement |
(53,076) |
(10,549) |
(906) |
(64,531) |
(879) |
(879) | ||||||
Sponsor's Contributions during the year |
(39,043) |
(11,442) |
(845) |
(51,330) |
(1,139) |
(1,139) | ||||||
Actuarial liability (asset) at the end of the period |
499,593 |
119,973 |
12,023 |
631,589 |
(11,743) |
(11,743) | ||||||
Other contributions |
13,748 |
(525) |
114 |
13,337 |
||||||||
Subtotal |
513,341 |
119,448 |
12,137 |
644,926 |
|
| ||||||
Other contributions RGE |
- |
- |
- |
4,634 |
||||||||
Total Passivo |
513,341 |
119,448 |
12,137 |
649,560 |
||||||||
Current |
43,801 |
- | ||||||||||
Noncurrent |
605,759 |
11,743 |
Expense and income recognized as operating cost in the actuarial report are shown below:
3rd quarter 2010 | ||||||||||
CPFL |
CPFL |
CPFL |
RGE |
Consolidated | ||||||
Paulista |
Piratininga |
Geração |
||||||||
Cost of service |
275 |
1,202 |
36 |
288 |
1,801 | |||||
Interest on actuarial liabilities |
73,114 |
18,883 |
1,586 |
4,587 |
98,170 | |||||
Expected return on assets |
(91,072) |
(23,288) |
(1,921) |
(5,929) |
(122,210) | |||||
Total Expense (Income) |
(17,683) |
(3,203) |
(299) |
(1,054) |
(22,239) | |||||
Expected contributions from participants |
(9) |
(313) |
- |
468 |
146 | |||||
Subtotal |
(17,692) |
(3,516) |
(299) |
(586) |
(22,093) | |||||
Other |
- |
- |
- |
293 |
293 | |||||
Total Income |
(17,692) |
(3,516) |
(299) |
(293) |
(21,800) | |||||
3rd quarter 2009 | ||||||||||
CPFL |
CPFL |
CPFL |
RGE |
Consolidated | ||||||
Paulista |
Piratininga |
Geração |
||||||||
Cost of service |
361 |
1,367 |
41 |
314 |
2,083 | |||||
Interest on actuarial liabilities |
75,755 |
19,245 |
1,633 |
4,407 |
101,040 | |||||
Expected return on assets |
(76,088) |
(19,389) |
(1,617) |
(4,597) |
(101,691) | |||||
Total Expense (Income) |
28 |
1,223 |
57 |
124 |
1,432 | |||||
Expected contributions from participants |
(9) |
(324) |
- |
(274) |
(607) | |||||
Subtotal |
19 |
899 |
57 |
(150) |
825 | |||||
Other |
- |
- |
- |
75 |
75 | |||||
Total Expense (Income) |
19 |
899 |
57 |
(75) |
900 |
The principal assumptions considered in the actuarial calculations were:
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: September 30, 2010
CPFL Paulista, CPFL Piratininga and 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: |
MERCER TABLE |
MERCER TABLE |
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. |
( 21 ) REGULATORY CHARGES
Consolidated | ||||
September 30, 2010 |
|
December 31, 2009 | ||
Fee for the Use of Water Resources |
3,615 |
4,080 | ||
Global Reverse Fund - RGR |
19,381 |
9,876 | ||
ANEEL Inspection Fee |
2,131 |
1,945 | ||
Fuel Consumption Account - CCC |
53,759 |
9,392 | ||
Energy Development Account - CDE |
40,244 |
38,457 | ||
Total |
119,130 |
63,750 |
( 22 ) RESERVE FOR CONTINGENCIES
67
(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: September 30, 2010
Consolidated | ||||||||
September 30, 2010 |
December 31, 2009 | |||||||
Reserve for contingencies |
Escrow Deposits |
Reserve for contingencies |
Escrow Deposits | |||||
Labor |
||||||||
Various |
58,520 |
138,856 |
42,752 |
127,750 | ||||
Civil |
||||||||
General Damages |
13,329 |
85,586 |
9,897 |
59,434 | ||||
Tariff Increase |
10,621 |
9,368 |
12,249 |
9,068 | ||||
Other |
12,666 |
17,502 |
11,967 |
15,674 | ||||
36,616 |
112,456 |
34,113 |
84,176 | |||||
Tax |
||||||||
FINSOCIAL |
18,687 |
53,244 |
18,601 |
52,998 | ||||
Increase in basis - PIS and COFINS |
830 |
890 |
866 |
1,022 | ||||
Interest on Shareholders’ Equity - PIS and COFINS |
10,433 |
10,433 |
9,800 |
9,800 | ||||
PIS and COFINS - Non-Cumulative Method |
84,554 |
- |
122,792 |
- | ||||
Income Tax |
71,585 |
528,771 |
63,914 |
498,347 | ||||
Other |
7,792 |
17,421 |
7,806 |
20,084 | ||||
193,881 |
610,759 |
223,779 |
582,251 | |||||
Total |
289,017 |
862,071 |
300,644 |
794,177 |
The change in the balances related to reserve for contingencies and escrow deposits are shown below:
Consolidated | |||||||||||
June 30, 2010 |
Addition |
Reversal |
Payment |
Monetary Restatement |
September 30, 2010 | ||||||
Labor |
41,336 |
20,595 |
(1,007) |
(2,404) |
- |
58,520 | |||||
Civil |
37,166 |
3,441 |
(3,124) |
(950) |
83 |
36,616 | |||||
Tax |
191,108 |
2,060 |
(563) |
(22) |
1,298 |
193,881 | |||||
Reserve for Contingencies |
269,610 |
26,096 |
(4,694) |
(3,376) |
1,381 |
289,017 | |||||
Escrow Deposits |
845,697 |
12,336 |
(6,014) |
(2,520) |
12,572 |
862,071 | |||||
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.
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
68
(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: September 30, 2010
Considering the taxation rules and discussions regarding the non-cumulative incidence of PIS and COFINS on certain sectorial charges, 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”.
Labor Suit - Litigation Settlement
In this quarter, the subsidiary CPFL Paulista agreed a settlement with the Sao Paulo Engineers' Union in relation to the labor claim, in the amount of R$ 19,797 for payment in October 2010.
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 September 30, 2010, the claims relating to possible losses were as follows: (i) R$ 325,218 for labor suits (R$ 294,825 as of December 31, 2009); (ii) R$ 593,010 for civil suits, mainly for suits for personal injuries, environmental damages and tariff increases (R$ 472,710 as of December 31, 2009); and (iii) R$ 793,901 in respect of tax suits, relating basically to Income Tax, ICMS, INSS, FINSOCIAL and PIS and COFINS (R$ 625,369 as of December 31, 2009).
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.
( 23 ) PUBLIC UTILITIES
Consolidated | ||||||||
Companies |
|
September 30, 2010 |
|
December 31, 2009 |
|
Number of remaining installments |
Interest rates | |
CERAN |
|
69,625 |
|
65,904 |
|
304 |
|
IGP-M + 9.6%p.a. |
ENERCAN |
|
9,772 |
|
9,434 |
|
294 |
|
IGP-M + 8%p.a. |
BAESA |
|
52,233 |
|
50,402 |
|
306 |
|
IGP-M + 8%p.a. |
Foz do Chapecó |
|
305,438 |
|
295,794 |
|
313 |
|
IGP-M / IPC-A + 5.3%p.a. |
TOTAL |
|
437,068 |
|
421,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
16,743 |
|
15,697 |
|
|
|
|
Noncurrent |
|
420,325 |
|
405,837 |
|
|
|
|
( 24 ) OTHER ACCOUNTS PAYABLE
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: September 30, 2010
Consolidated | ||||||||
Current |
Noncurrent | |||||||
September 30, 2010 |
December 31, 2009 |
September 30, 2010 |
December 31, 2009 | |||||
Consumers and Concessionaires |
57,748 |
50,250 |
- |
- | ||||
Energy Efficiency Program - PEE |
77,135 |
55,889 |
29,274 |
56,915 | ||||
Research & Development - P&D |
113,466 |
100,544 |
24,923 |
12,636 | ||||
National Scientific and Technological Development Fund - FNDCT |
4,718 |
4,705 |
- |
- | ||||
Energy Research Company - EPE |
2,025 |
2,008 |
- |
- | ||||
Fund for Reversal |
- |
- |
17,750 |
17,751 | ||||
Advances |
6,768 |
9,652 |
27,829 |
55,987 | ||||
Provision for environmental expenditure |
1,851 |
2,483 |
344 |
2,628 | ||||
Payroll |
6,521 |
8,085 |
- |
- | ||||
Profit sharing |
30,786 |
32,490 |
- |
- | ||||
TAC ANEEL fine (DEC/FEC and voltage level) |
- |
10,877 |
- |
- | ||||
Collections agreement |
49,490 |
27,138 |
- |
- | ||||
Guarantees |
- |
- |
73,943 |
71,152 | ||||
Other |
50,790 |
34,740 |
9,796 |
9,575 | ||||
Total |
401,298 |
338,861 |
183,859 |
226,644 | ||||
( 25 ) SHAREHOLDERS’ EQUITY
The shareholders' participations in the Company's equity as of September 30, 2010 and December 31, 2009 are distributed as follows:
Number of shares | ||||||||
September 30, 2010 |
December 31, 2009 | |||||||
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 | ||||
Brumado Holdings S.A. |
17,251,048 |
3.59 |
17,251,048 |
3.59 | ||||
Board Members |
112 |
- |
112 |
- | ||||
Executive Officers |
2,824 |
- |
6,450 |
- | ||||
Other Shareholders |
90,460,449 |
18.80 |
89,230,631 |
18.60 | ||||
Total |
481,137,130 |
100.00 |
479,910,938 |
100.00 | ||||
25.1 –Capital Increase
70
(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: September 30, 2010
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:
In the second quarter of 2010, the Company paid out R$ 652,302 relating to dividends declared and provisioned as of December 31, 2009.
In this quarter, the Company paid out R$ 771,253 relating to dividends declared and provisioned at the base date of June 30, 2010.
( 26 ) GROSS SALES AND SERVICES INCOME
71
(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: September 30, 2010
Consolidated | ||||||||
2010 |
2009 |
|
| |||||
Revenue from Eletric Energy Operations |
3rd quarter |
Nine month |
3rd quarter |
Nine month | ||||
Consumer class |
||||||||
Residential |
1,341,914 |
4,047,322 |
1,304,572 |
3,759,712 | ||||
Industrial |
1,058,882 |
3,107,336 |
1,102,098 |
3,017,161 | ||||
Commercial |
663,447 |
2,077,040 |
660,906 |
1,964,124 | ||||
Rural |
117,130 |
329,254 |
112,640 |
323,553 | ||||
Public Administration |
95,431 |
284,437 |
95,507 |
273,309 | ||||
Public Lighting |
76,959 |
226,762 |
76,612 |
217,732 | ||||
Public Services |
119,987 |
351,734 |
122,609 |
342,247 | ||||
Billed |
3,473,750 |
10,423,885 |
3,474,944 |
9,897,838 | ||||
Unbilled (Net) |
8,876 |
(2,247) |
9,678 |
54,152 | ||||
Emergency Charges - ECE/EAEE |
- |
3 |
(4) |
(11) | ||||
Reclassification to Network Usage Charge - TUSD - Captive Consumers |
(1,406,042) |
(4,427,684) |
(1,478,923) |
(4,367,063) | ||||
Electricity sales to final consumers |
2,076,584 |
5,993,957 |
2,005,695 |
5,584,916 | ||||
Furnas Centrais Elétricas S.A. |
87,582 |
259,930 |
89,115 |
264,479 | ||||
Other Concessionaires and Licensees |
205,723 |
513,104 |
211,891 |
618,923 | ||||
Current Electric Energy |
55,075 |
72,853 |
23,676 |
76,988 | ||||
Electricity sales to wholesaler |
348,380 |
845,887 |
324,682 |
960,390 | ||||
Revenue due to Network Usage Charge - TUSD - Captive Consumers |
1,406,042 |
4,427,684 |
1,478,923 |
4,367,063 | ||||
Revenue due to Network Usage Charge - TUSD - Free Consumers |
305,745 |
807,925 |
207,047 |
583,937 | ||||
Revenue from construction of concession infrastructure |
295,403 |
698,867 |
160,216 |
410,678 | ||||
Low Income Consumer´s Subsidy |
7,548 |
23,472 |
7,998 |
23,911 | ||||
Other Revenue and Income |
54,782 |
167,509 |
59,432 |
170,177 | ||||
Other operating revenues |
2,069,520 |
6,125,457 |
1,913,616 |
5,555,766 | ||||
Total gross revenues |
4,494,484 |
12,965,301 |
4,243,993 |
12,101,072 | ||||
Deductions from operating revenues |
||||||||
ICMS |
(683,792) |
(2,034,144) |
(664,459) |
(1,925,420) | ||||
PIS |
(65,506) |
(198,882) |
(68,470) |
(191,832) | ||||
COFINS |
(302,523) |
(916,917) |
(316,801) |
(885,029) | ||||
ISS |
(919) |
(2,436) |
(936) |
(2,712) | ||||
Global Reversal Reserve - RGR |
(17,844) |
(53,444) |
(15,772) |
(45,523) | ||||
Fuel Consumption Account - CCC |
(159,958) |
(424,563) |
(103,915) |
(249,005) | ||||
Energy Development Account - CDE |
(117,659) |
(352,975) |
(112,344) |
(337,074) | ||||
Research and Development and Energy Efficiency Programs |
(34,402) |
(91,769) |
(23,166) |
(73,640) | ||||
PROINFA |
(13,006) |
(45,009) |
(13,543) |
(28,090) | ||||
Other |
- |
(3) |
4 |
11 | ||||
(1,395,609) |
(4,120,142) |
(1,319,402) |
(3,738,314) | |||||
|
|
|
| |||||
Net revenue |
3,098,875 |
8,845,159 |
2,924,591 |
8,362,758 | ||||
(*) Information not examined by the independent auditors. |
72
(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: September 30, 2010
Consolidated | ||||||||
2010 |
2009 |
|
| |||||
Revenue from Eletric Energy Operations - GWh (*) |
3rd quarter |
Nine month |
3rd quarter |
Nine month | ||||
Clas of consumers |
||||||||
Residential |
3,226 |
9,697 |
3,041 |
9,180 | ||||
Industrial |
3,911 |
11,602 |
3,866 |
10,961 | ||||
Commercial |
1,808 |
5,719 |
1,692 |
5,350 | ||||
Rural |
576 |
1,617 |
559 |
1,698 | ||||
Public Administration |
272 |
822 |
259 |
785 | ||||
Public Lighting |
364 |
1,079 |
355 |
1,053 | ||||
Public Services |
446 |
1,300 |
416 |
1,246 | ||||
Billed |
10,603 |
31,836 |
10,188 |
30,273 | ||||
Own consuption |
8 |
25 |
8 |
24 | ||||
Electricity sales to final consumers |
10,611 |
31,861 |
10,196 |
30,297 | ||||
Furnas Centrais Elétricas S.A. |
763 |
2,263 |
783 |
2,318 | ||||
Other Concessionaires and Licensees |
1,805 |
5,226 |
2,470 |
8,708 | ||||
Current Electric Energy |
795 |
1,762 |
1,156 |
2,229 | ||||
Electricity sales to wholesaler |
3,363 |
9,251 |
4,409 |
13,255 | ||||
(*) Information not examined by the independent auditors. |
||||||||
Consumers (*) |
2010 |
2009 |
||||||
Clas of consumers |
||||||||
Residential |
5,828,837 |
5,656,836 |
||||||
Industrial |
78,480 |
77,275 |
||||||
Commercial |
492,484 |
496,220 |
||||||
Rural |
236,542 |
239,133 |
||||||
Public Administration |
44,926 |
43,531 |
||||||
Public Lighting |
8,015 |
7,566 |
||||||
Public Services |
7,212 |
6,802 |
||||||
Total |
6,696,496 |
6,527,363 |
||||||
(*) Information not examined 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 and to enable comparison of Statements, the subsidiaries made the following reclassifications in the Financial Statements for 2009:
(a) Reclassification of 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”.
(b) In accordance with CAT Ordinance 97/2009, amounts relating to ICMS charged from free consumers are no longer posted to the Income Statement. As this involved posting items under Gross Revenue against Revenue Deductions, there was no impact to the Income Statements of the subsidiaries.
73
(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: September 30, 2010
( 27 ) COST OF ELECTRIC ENERGY
Consolidated | ||||||||
2010 |
2009 | |||||||
Cost of Electric Energy |
3rd quarter |
Nine month |
3rd quarter |
Nine month | ||||
Electricity Purchased for Resale |
||||||||
Energy Purchased in Restricted Framework - ACR |
||||||||
Tractebel Energia S.A. |
251,031 |
839,382 |
228,565 |
748,042 | ||||
Itaipu Binacional |
249,584 |
765,665 |
270,145 |
903,426 | ||||
Petróleo Brasileiro S.A. Petrobrás |
49,612 |
150,431 |
53,563 |
147,942 | ||||
CESP - Cia Energética de São Paulo |
46,065 |
130,722 |
42,535 |
129,046 | ||||
Furnas Centrais Elétricas S.A. |
41,809 |
114,713 |
36,416 |
111,408 | ||||
CEMIG - Cia Energética de Minas Gerais |
30,097 |
97,523 |
58,421 |
163,320 | ||||
CHESF - Cia Hidro Elétrica do São Francisco |
30,369 |
87,962 |
27,714 |
85,703 | ||||
Termorio S.A. |
35,838 |
82,154 |
9,545 |
34,850 | ||||
Copel Geração e Transmissão S.A. |
16,543 |
51,992 |
16,726 |
51,554 | ||||
Tractebel Energia Comercializadora Ltda. |
32,792 |
32,792 |
35,009 |
35,009 | ||||
Câmara de Comercialização de Energia Elétrica - CCEE |
45,297 |
62,049 |
(10,018) |
56,423 | ||||
PROINFA |
44,507 |
139,092 |
42,048 |
130,979 | ||||
Other |
207,259 |
505,126 |
171,319 |
468,892 | ||||
1,080,803 |
3,059,603 |
981,988 |
3,066,594 | |||||
Energy Purchased in the Free Market - ACL |
426,796 |
1,046,474 |
403,721 |
1,067,440 | ||||
1,507,599 |
4,106,077 |
1,385,709 |
4,134,034 | |||||
Credit of PIS and COFINS |
(128,251) |
(382,960) |
(137,657) |
(388,713) | ||||
Subtotal |
1,379,348 |
3,723,117 |
1,248,052 |
3,745,321 | ||||
Electricity Network Usage Charge |
||||||||
Basic Network Charges |
222,960 |
679,935 |
240,392 |
678,907 | ||||
Transmission from Itaipu |
19,838 |
62,645 |
20,517 |
59,674 | ||||
Connection Charges |
18,881 |
44,319 |
11,787 |
36,026 | ||||
Charges of Use of the Distribution System |
6,767 |
20,420 |
6,598 |
18,927 | ||||
System Service Charges - ESS |
34,839 |
113,615 |
17,707 |
73,553 | ||||
Reserve Energy charges |
12,385 |
28,902 |
- |
3,219 | ||||
315,670 |
949,836 |
297,001 |
870,306 | |||||
Credit of PIS and COFINS |
(29,240) |
(90,393) |
(32,690) |
(88,474) | ||||
Subtotal |
286,430 |
859,443 |
264,311 |
781,832 | ||||
Total |
1,665,778 |
4,582,560 |
1,512,363 |
4,527,153 | ||||
(*) Information not examined by the independent auditors. |
74
(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: September 30, 2010
|
|
Consolidated | ||||||
|
|
2010 |
|
2009 | ||||
Electricity Purchased for Resale - GWh (*) |
|
3rd quarter |
|
Nine month |
|
3rd quarter |
|
Nine month |
Energy Purchased in Restricted Framework - ACR |
|
|
|
|
|
|
|
|
Tractebel Energia S.A. |
|
1,804 |
|
5,733 |
|
1,689 |
|
5,251 |
Itaipu Binacional |
|
2,734 |
|
8,087 |
|
2,812 |
|
8,288 |
Petróleo Brasileiro S.A. Petrobrás |
|
419 |
|
1,243 |
|
425 |
|
1,220 |
CESP - Cia Energética de São Paulo |
|
460 |
|
1,315 |
|
444 |
|
1,364 |
Furnas Centrais Elétricas S.A. |
|
426 |
|
1,235 |
|
403 |
|
1,252 |
CEMIG - Cia Energética de Minas Gerais |
|
235 |
|
773 |
|
539 |
|
1,301 |
CHESF - Cia Hidro Elétrica do São Francisco |
|
340 |
|
991 |
|
320 |
|
1,003 |
Termorio S.A. |
|
80 |
|
242 |
|
37 |
|
126 |
Copel Geração e Transmissão S.A. |
|
165 |
|
519 |
|
171 |
|
535 |
Câmara de Comercialização de Energia Elétrica - CCEE |
|
844 |
|
2,364 |
|
562 |
|
3,027 |
PROINFA |
|
154 |
|
649 |
|
259 |
|
647 |
Other |
|
1,176 |
|
3,760 |
|
1,106 |
|
3,359 |
|
|
8,837 |
|
26,911 |
|
8,767 |
|
27,373 |
Energy Purchased in the Free Market - ACL |
|
4,274 |
|
11,643 |
|
4,350 |
|
11,694 |
|
|
13,111 |
|
38,554 |
|
13,117 |
|
39,067 |
(*) Information not examined by the independent auditors. |
|
|
|
|
|
|
|
|
In compliance with ANEEL Order no 4,722/2009 and in order to enable comparison of Financial Statements, the subsidiaries reclassified amounts in the Financial Statements for 2009 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$ 15,302 and R$ 9,943, respectively, for the third quarter of 2010 and the third quarter of 2009, and R$ 40,873 and R$ 24,490 for the 9 months ended on September 30, 2010 and 2009, respectively.
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: September 30, 2010
( 28 ) COST AND OPERATING EXPENSES
Parent Company | ||||||||||||||||||||||||||
3rd quarter |
|
Nine month | ||||||||||||||||||||||||
General |
Other |
Total |
|
General |
Other |
Total | ||||||||||||||||||||
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
2010 |
2009 |
2010 |
2009 |
2010 |
2009 | ||||||||
Personnel |
996 |
549 |
- |
- |
996 |
549 |
|
2,837 |
1,789 |
- |
- |
2,837 |
1,789 | |||||||||||||
Materials |
7 |
8 |
- |
- |
7 |
8 |
|
46 |
20 |
- |
- |
46 |
20 | |||||||||||||
Outside Services |
4,314 |
1,210 |
- |
- |
4,314 |
1,210 |
|
10,894 |
4,919 |
- |
- |
10,894 |
4,919 | |||||||||||||
Depreciation and Amortization |
39 |
30 |
- |
- |
39 |
30 |
|
105 |
89 |
- |
- |
105 |
89 | |||||||||||||
Other: |
983 |
2,221 |
36,255 |
37,431 |
37,238 |
39,652 |
|
3,479 |
5,084 |
108,495 |
112,901 |
111,974 |
117,985 | |||||||||||||
Leases and Rentals |
15 |
30 |
- |
- |
15 |
30 |
|
62 |
99 |
- |
- |
62 |
99 | |||||||||||||
Publicity and Advertising |
351 |
(93) |
- |
- |
351 |
(93) |
|
852 |
- |
- |
- |
852 |
- | |||||||||||||
Legal, Judicial and Indemnities |
19 |
(405) |
- |
- |
19 |
(405) |
|
380 |
- |
- |
380 |
- | ||||||||||||||
Donations, Contributions and Subsidies |
- |
28 |
- |
- |
- |
28 |
|
- |
28 |
- |
- |
- |
28 | |||||||||||||
Loss (gain) on the write-off of noncurrent assets |
- |
- |
- |
244 |
- |
244 |
|
- |
- |
- |
1,340 |
- |
1,340 | |||||||||||||
Intangible of concession amortization |
- |
- |
36,255 |
37,187 |
36,255 |
37,187 |
|
- |
- |
108,495 |
111,561 |
108,495 |
111,561 | |||||||||||||
Other: |
598 |
2,661 |
- |
- |
598 |
2,661 |
|
2,185 |
4,957 |
- |
2,185 |
4,957 | ||||||||||||||
Total |
6,339 |
4,018 |
36,255 |
37,431 |
42,594 |
41,449 |
|
17,361 |
11,901 |
108,495 |
112,901 |
125,856 |
124,802 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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: September 30, 2010
Consolidated | ||||||||||||||||||||||||
Operating costs |
Services Rendered to Third Parties |
Operating expenses |
Total | |||||||||||||||||||||
Sales |
|
General |
Other |
|||||||||||||||||||||
3rd quarter | ||||||||||||||||||||||||
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 | |||||||||||||
Personnel |
87,585 |
79,676 |
71 |
198 |
20,682 |
17,161 |
39,399 |
39,989 |
- |
- |
147,737 |
137,024 | ||||||||||||
Employee Pension Plans |
(21,800) |
900 |
- |
- |
- |
- |
- |
- |
- |
- |
(21,800) |
900 | ||||||||||||
Materials |
16,797 |
14,624 |
858 |
309 |
667 |
713 |
3,090 |
2,023 |
- |
- |
21,412 |
17,669 | ||||||||||||
Outside Services |
48,680 |
39,803 |
1,095 |
697 |
20,033 |
19,552 |
41,446 |
34,809 |
- |
- |
111,254 |
94,861 | ||||||||||||
Depreciation and Amortization |
112,014 |
110,704 |
164 |
165 |
2,271 |
2,711 |
6,352 |
5,849 |
181 |
180 |
120,982 |
119,609 | ||||||||||||
Costs related to infrastructure construction |
- |
- |
295,403 |
160,216 |
- |
- |
- |
- |
- |
- |
295,403 |
160,216 | ||||||||||||
Other: |
12,999 |
14,519 |
3 |
- |
23,920 |
26,906 |
43,025 |
17,237 |
56,163 |
51,380 |
136,110 |
110,042 | ||||||||||||
Collection charges |
- |
- |
- |
- |
12,050 |
11,989 |
- |
- |
- |
- |
12,050 |
11,989 | ||||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
7,555 |
12,122 |
- |
- |
- |
- |
7,555 |
12,122 | ||||||||||||
Leases and Rentals |
- |
- |
- |
- |
6 |
5 |
2,261 |
1,429 |
- |
- |
2,267 |
1,434 | ||||||||||||
Publicity and Advertising |
- |
- |
- |
- |
- |
- |
8,236 |
1,438 |
- |
- |
8,236 |
1,438 | ||||||||||||
Legal, Judicial and Indemnities |
- |
- |
- |
- |
- |
- |
26,174 |
7,322 |
- |
- |
26,174 |
7,322 | ||||||||||||
Donations, Contributions and Subsidies |
- |
- |
- |
- |
- |
- |
1,645 |
1,534 |
- |
- |
1,645 |
1,534 | ||||||||||||
Inspection fee |
- |
- |
- |
- |
- |
- |
- |
- |
6,396 |
5,683 |
6,396 |
5,683 | ||||||||||||
Loss (gain) on the write-off of noncurrent assets |
- |
- |
- |
- |
- |
- |
- |
- |
2,188 |
(2,295) |
2,188 |
(2,295) | ||||||||||||
Free energy adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
1,127 |
- |
1,127 |
- | ||||||||||||
Intangible of concession amortization |
- |
- |
- |
- |
- |
- |
- |
- |
46,511 |
47,645 |
46,511 |
47,645 | ||||||||||||
Other: |
12,999 |
14,519 |
3 |
- |
4,309 |
2,790 |
4,709 |
5,514 |
(59) |
347 |
21,961 |
23,170 | ||||||||||||
Total |
256,275 |
260,226 |
297,594 |
161,585 |
67,573 |
67,043 |
133,312 |
99,907 |
56,344 |
51,560 |
811,098 |
640,321 | ||||||||||||
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: September 30, 2010
Consolidated | |||||||||||||||||||||||||
Operating costs |
Services Rendered to Third Parties |
Operating expenses |
Total | ||||||||||||||||||||||
Sales |
|
General |
Other |
||||||||||||||||||||||
Nine month | |||||||||||||||||||||||||
|
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 |
2010 |
2009 | |||||||||||||
Personnel |
261,260 |
246,800 |
304 |
537 |
58,956 |
51,697 |
120,575 |
115,046 |
- |
- |
441,095 |
414,080 | |||||||||||||
Employee Pension Plans |
(65,405) |
2,734 |
- |
- |
- |
- |
- |
- |
- |
- |
(65,405) |
2,734 | |||||||||||||
Materials |
45,952 |
40,958 |
1,477 |
823 |
2,252 |
3,486 |
7,945 |
5,530 |
- |
- |
57,626 |
50,797 | |||||||||||||
Outside Services |
131,697 |
116,611 |
2,349 |
2,093 |
58,353 |
53,879 |
127,824 |
110,266 |
- |
- |
320,223 |
282,849 | |||||||||||||
Depreciation and Amortization |
333,821 |
334,213 |
494 |
495 |
6,688 |
8,231 |
17,507 |
17,816 |
541 |
541 |
359,051 |
361,296 | |||||||||||||
Costs related to infrastructure construction |
- |
- |
698,867 |
410,678 |
- |
- |
- |
- |
- |
- |
698,867 |
410,678 | |||||||||||||
Other: |
44,272 |
37,924 |
3 |
3 |
85,182 |
65,557 |
49,669 |
47,428 |
164,234 |
162,186 |
343,360 |
313,098 | |||||||||||||
Collection charges |
- |
- |
- |
- |
35,090 |
36,436 |
- |
- |
- |
- |
35,090 |
36,436 | |||||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
37,410 |
20,934 |
- |
- |
- |
- |
37,410 |
20,934 | |||||||||||||
Leases and Rentals |
- |
- |
- |
- |
6 |
13 |
6,397 |
3,817 |
- |
- |
6,403 |
3,830 | |||||||||||||
Publicity and Advertising |
- |
- |
- |
- |
- |
- |
10,951 |
2,508 |
- |
- |
10,951 |
2,508 | |||||||||||||
Legal, Judicial and Indemnities |
- |
- |
- |
- |
- |
- |
7,726 |
17,256 |
- |
- |
7,726 |
17,256 | |||||||||||||
Donations, Contributions and Subsidies |
- |
- |
- |
- |
- |
- |
4,924 |
4,509 |
- |
- |
4,924 |
4,509 | |||||||||||||
Inspection fee |
- |
- |
- |
- |
- |
- |
- |
- |
18,575 |
17,767 |
18,575 |
17,767 | |||||||||||||
Loss (gain) on the write-off of noncurrent assets |
- |
- |
- |
- |
- |
- |
- |
- |
1,946 |
(1,154) |
1,946 |
(1,154) | |||||||||||||
Free energy adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
3,654 |
- |
3,654 |
- | |||||||||||||
Intangible of concession amortization |
- |
- |
- |
- |
- |
- |
- |
- |
139,240 |
142,932 |
139,240 |
142,932 | |||||||||||||
Other: |
44,272 |
37,924 |
3 |
3 |
12,676 |
8,174 |
19,671 |
19,338 |
819 |
2,641 |
77,441 |
68,080 | |||||||||||||
Total |
751,597 |
779,240 |
703,494 |
414,629 |
211,431 |
182,850 |
323,520 |
296,086 |
164,775 |
162,727 |
2,154,817 |
1,835,532 | |||||||||||||
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: September 30, 2010
( 29 ) FINANCIAL INCOME AND EXPENSES
Parent Company | ||||||||
2010 |
2009 | |||||||
3rd quarter |
|
Nine month |
|
3rd quarter |
|
Nine month | ||
Financial Income |
||||||||
Income from Financial Investments |
6,626 |
24,951 |
8,014 |
17,890 | ||||
Arrears of interest and fines |
- |
22 |
- |
- | ||||
Restatement of tax credits |
2,173 |
2,527 |
574 |
2,570 | ||||
Restatement of Escrow Deposits |
240 |
633 |
160 |
160 | ||||
Monetary and Exchange Variations |
- |
- |
- |
- | ||||
Discount on purchase of ICMS credit |
- |
- |
- |
- | ||||
PIS and COFINS on Interest on Shareholders' Equity |
- |
(9,117) |
- |
(9,447) | ||||
Guarantees |
1,532 |
4,684 |
1,307 |
5,673 | ||||
Other |
10,501 |
19,850 |
4,428 |
9,841 | ||||
Total |
21,072 |
43,550 |
14,483 |
26,687 | ||||
Financial Expense |
||||||||
Debt Charges |
(12,599) |
(33,187) |
(10,686) |
(36,108) | ||||
Monetary and Exchange Variations |
224 |
619 |
(12) |
(326) | ||||
(-) Capitalized borrowing costs |
- |
- |
- |
- | ||||
Public utilities |
- |
- |
- |
- | ||||
Guarantees |
(6,246) |
(17,517) |
(869) |
(5,685) | ||||
Other |
(2,373) |
(5,930) |
(2,362) |
(6,402) | ||||
Total |
(20,994) |
(56,015) |
(13,929) |
(48,521) | ||||
Net financial income (expense) |
78 |
(12,465) |
554 |
(21,834) |
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: September 30, 2010
Consolidated | ||||||||
2010 |
2009 | |||||||
3rd quarter |
|
Nine month |
|
3rd quarter |
|
Nine month | ||
Financial Income |
||||||||
Income from Financial Investments |
45,509 |
110,887 |
21,131 |
63,532 | ||||
Arrears of interest and fines |
33,132 |
98,976 |
29,070 |
93,995 | ||||
Restatement of tax credits |
3,711 |
5,421 |
300 |
3,251 | ||||
Restatement of Escrow Deposits |
12,068 |
32,447 |
10,772 |
35,187 | ||||
Monetary and Exchange Variations |
8,676 |
24,758 |
(2,122) |
9,445 | ||||
Discount on purchase of ICMS credit |
1,820 |
5,389 |
2,555 |
5,321 | ||||
PIS and COFINS on Interest on Shareholders' Equity |
- |
(9,117) |
- |
(9,447) | ||||
Guarantees |
1,532 |
4,684 |
1,307 |
5,673 | ||||
Other |
23,377 |
58,672 |
15,363 |
45,815 | ||||
Total |
129,825 |
332,117 |
78,376 |
252,772 | ||||
Financial Expense |
||||||||
Debt Charges |
(196,993) |
(535,131) |
(126,219) |
(413,100) | ||||
Monetary and Exchange Variations |
(19,344) |
(67,025) |
(6,683) |
(20,843) | ||||
(-) Capitalized borrowing costs |
37,942 |
109,599 |
2,161 |
20,730 | ||||
Public utilities |
(4,858) |
(15,038) |
(1,894) |
(5,485) | ||||
Guarantees |
(6,247) |
(17,517) |
(872) |
(5,688) | ||||
Other |
(13,425) |
(46,236) |
(11,729) |
(46,538) | ||||
Total |
(202,925) |
(571,348) |
(145,236) |
(470,924) | ||||
Net financial income (expense) |
(73,100) |
(239,231) |
(66,860) |
(218,152) | ||||
( 30 ) TRANSACTIONS WITH RELATED PARTIES
The Company is controlled by the following Companies:
· VBC Energia S.A.
Controlled by the Camargo Corrêa group, with operations in a number of segments, such as construction, cement, footwear, textiles, aluminum and highway concessions, among others.
· Bonaire Participações S.A.
Controlled by Energia São Paulo Fundo de Investimento em Participações, which in turn is controlled by the following pension funds: (a) Fundação CESP, (b) Fundação SISTEL de Seguridade Social, (c) Fundação Petrobras de Seguridade Social - PETROS, and (d) Fundação SABESP de Seguridade Social - SABESPREV.
· Fundo BB Carteira Livre I - Fundo de Investimento em Ações (“Fund")
Fund controlled by PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil.
The direct and indirect participations in operating subsidiaries are described in Note 1.
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: September 30, 2010
Controlling shareholders, subsidiaries and associated companies, jointly controlled corporations and entities under common control and that in some way exercise significant influence over the Company are regarded as related parties.
The financial statements for September 30, 2010 and December 31, 2009 show the balances and changes that took place in the normal course of operating activities of the Company and its subsidiaries.
The main transactions are described below:
a) Bank deposits and short-term investments – refer mainly to bank deposits and short-term financial investments, as mentioned in Note 6.
b) Loans and Financing, Debentures and Derivatives – relate to funds raised in accordance with Notes 16 and 17, contracted under the normal market conditions at the time. In addition, the Company is guarantor of some of the loans obtained by its subsidiaries, as described in Notes 16 and 17.
c) Other Financial Transactions – the amounts in relation to Banco do Brasil are bank costs and collection expenses. The balance recorded in liabilities comprises basically the rights over the payroll processing of certain subsidiaries, negotiated with Banco do Brasil, which are appropriated as an income in the statement of operations over the term of the contract. The Company also has an Exclusive Investment Fund managed by BB DTVM, which charges management fees under normal market conditions for such management.
d) Property, plant and equipment, Materials and Service Provision – refers to the acquisition of equipment, cables and other materials for use in distribution and generation, and contracting of services such as construction and information technology consultancy. These operations were contracted under normal market conditions.
e) Energy sales to the free market – refers basically to energy sales to free consumers, through short or long-term contracts made under conditions regarded by the Company as being market conditions at the time of the negotiation, in accordance with internal policies established in advance by Company management.
f) Energy purchased in the free market – refers basically to energy purchased by the trading companies in accordance with short or long-term agreements made under conditions regarded by the Company as being market conditions at the time of the negotiation, in accordance with policies established in advance by Company management.
g) Other revenue – refers basically to revenue from rental of use of the distribution system for telephony services.
h) Purchase and sale of energy in the regulated market - The subsidiaries that are public distribution service concessionaires charge tariffs for the use of the distribution system (TUSD) and sell energy to related parties in their respective concession areas (captive consumers). The amounts charged are established in accordance with prices regulated by the regulatory agency. These distributors also purchase energy from related parties, mainly involving long-term agreements, in conformity with the rules established by the sector (principally by auction); these prices are also regulated and approved by ANEEL.
Additionally, certain subsidiaries have supplementary retirement plan maintained with Fundação CESP and offered to the employees of the subsidiaries, as mentioned in Note 20.
To ensure that commercial transactions with related parties are conducted under normal market conditions, the Company set up a Related Parties Committee, comprising representatives of the controlling shareholders, responsible for analyzing the main transactions with related parties.
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: September 30, 2010
During the quarter, the subsidiaries obtained approval for financing of R$ 499,800 (see note 16) from Banco do Brasil, in the form of rural credit.
( 31 ) FINANCIAL INSTRUMENTS AND OPERATING RISKS
a) Risk Considerations:
The business of the Company and its subsidiaries comprises principally generation, commercialization and distribution of electric energy. As public service concessionaires, the operations and/or tariffs of its principal subsidiaries are regulated by ANEEL.
The main market risk factors affecting the businesses are as follows:
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 operations of the Company’s subsidiaries are also exposed 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 tried to increase the proportion 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 is very low for 2011, and the likelihood of another energy rationing program is remote.
Risk of Acceleration of Debts: The 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.
Risk Management for Financial instruments
The Company and its subsidiaries maintain operating and financial policies and strategies to protect the liquidity, safety and profitability of their assets. They accordingly 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 market conditions.
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 Mark to Market, Stress Testing and Duration of the instruments, and assess the risks to which the Company and its subsidiaries are exposed. Historically, the financial instruments contracted by the Company and its subsidiaries supported by these tools have produced adequate risk mitigation results. It must be stressed that the Company and its subsidiaries have a formal policy of contracting 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.
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: September 30, 2010
c) Valuation of Financial Instruments
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 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 and credits receivable from CESP, 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 September 30, 2010 and December 31, 2009, applying the above methodology, are shown below:
Parent Company | ||||||||
September 30, 2010 |
December 31, 2009 | |||||||
Accounting balance |
Fair value |
Accounting balance |
Fair value | |||||
Debentures (note 17) |
(453,401) |
(458,537) |
(462,788) |
(468,993) | ||||
Total |
(453,401) |
(458,537) |
(462,788) |
(468,993) | ||||
Consolidated | ||||||||
September 30, 2010 |
December 31, 2009 | |||||||
Accounting balance |
Fair value |
Accounting balance |
Fair value | |||||
Loans and financing (note 16) |
(4,823,839) |
(4,644,798) |
(3,452,942) |
(3,194,735) | ||||
Debentures (note 17) |
(3,446,319) |
(3,495,551) |
(3,351,478) |
(3,392,071) | ||||
Total |
(8,270,158) |
(8,140,349) |
(6,804,420) |
(6,586,806) | ||||
d) Derivatives
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: September 30, 2010
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.
As of September 30, 2010, the Company and its subsidiaries had the following swap operations:
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: September 30, 2010
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 |
Trading market | |||||||||
Derivatives for protection of debts designated at fair value |
||||||||||||||||||
Exchange variation hedge |
||||||||||||||||||
CPFL Paulista |
||||||||||||||||||
ABN |
- |
(779) |
(779) |
5,655 |
(6,434) |
yen |
Jan 2012 |
376,983 |
Over-the-counter | |||||||||
Subtotal |
- |
(779) |
(779) |
5,655 |
(6,434) |
|||||||||||||
Derivatives for protection of debts not designated at fair value |
||||||||||||||||||
Exchange variation hedge |
||||||||||||||||||
CPFL Paulista |
||||||||||||||||||
Itau BBA |
|
- |
|
(2,589) |
|
(2,589) |
|
(2,581) |
|
(8) |
|
dollar |
|
Oct/2010 |
|
30,121 |
|
Over-the-counter |
CPFL Geração |
||||||||||||||||||
HSBC |
- |
(447) |
(447) |
(401) |
(46) |
dollar |
Oct/2010 to Mar/2011 |
65,237 |
Over-the-counter | |||||||||
Hedge interest rate variation (1) |
||||||||||||||||||
CPFL Energia |
||||||||||||||||||
Citibank |
||||||||||||||||||
2 |
(490) |
(488) |
96 |
(584) |
CDI + spread |
Sep 2010 to Sep 2014 |
450,000 |
Over-the-counter | ||||||||||
RGE |
||||||||||||||||||
Santander |
416 |
- |
416 |
99 |
317 |
CDI |
Dec 2010 to Dec 2013 |
280,000 |
Over-the-counter | |||||||||
Citibank |
102 |
- |
102 |
34 |
68 |
CDI |
Dec 2010 to Dec 2013 |
100,000 |
Over-the-counter | |||||||||
Hedge interest rate variation (2) |
||||||||||||||||||
CPFL Piratininga |
||||||||||||||||||
HSBC |
- |
(118) |
(118) |
9 |
(127) |
TJLP |
Jan/2013 |
25,453 |
Over-the-counter | |||||||||
Santander |
- |
(140) |
(140) |
4 |
(144) |
TJLP |
Jan/2013 |
25,453 |
Over-the-counter | |||||||||
CPFL Geração |
||||||||||||||||||
HSBC |
- |
(242) |
(242) |
4 |
(246) |
TJLP |
Dec/2012 |
50,377 |
Over-the-counter | |||||||||
Subtotal |
520 |
(4,026) |
(3,506) |
(2,736) |
(770) |
|||||||||||||
Total |
520 |
(4,805) |
(4,285) |
2,919 |
(7,204) |
|||||||||||||
Current |
361 |
(3,372) |
||||||||||||||||
Noncurrent |
159 |
(1,433) |
||||||||||||||||
Total |
520 |
(4,805) |
||||||||||||||||
For further details of terms and informationa bout debts and debentures, see Notes 16 and 17 |
||||||||||||||||||
(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 16).
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 quarter ended in September 30, 2010 and 2009, the derivatives resulted in the following impacts on the consolidated result:
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: September 30, 2010
Gain (loss) | ||||||||||||
2010 |
2009 |
|
| |||||||||
Company |
Hedged risk / Operation |
Account |
3rd quarter |
Nine month |
3rd quarter |
Nine month | ||||||
CPFL Energia |
Interest rate variation |
Financial expense - Swap transactions |
(14) |
164 |
97 |
37 | ||||||
CPFL Energia |
Mark to market |
Financial expense - Adjustment to fair value |
20 |
(231) |
(109) |
415 | ||||||
CPFL Paulista |
Exchange variation |
Financial expense - Swap transactions |
13,802 |
(3,160) |
(23,902) |
(195,372) | ||||||
CPFL Paulista |
Mark to market |
Financial expense - Adjustment to fair value |
1,627 |
1,558 |
1,223 |
44,450 | ||||||
CPFL Piratininga |
Exchange variation |
Financial expense - Swap transactions |
- |
- |
- |
(218) | ||||||
CPFL Piratininga |
Variação de taxas de juros |
Financial expense - Swap transactions |
13 |
13 |
- |
- | ||||||
CPFL Piratininga |
Mark to market |
Financial expense - Adjustment to fair value |
(271) |
(271) |
- |
(126) | ||||||
CPFL Geração |
Exchange variation |
Financial expense - Swap transactions |
(5,594) |
(13,832) |
(28,700) |
(233,624) | ||||||
CPFL Geração |
Interest rate variation |
Financial expense - Swap transactions |
(38) |
581 |
(132) |
(1,339) | ||||||
CPFL Geração |
Mark to market |
Financial expense - Adjustment to fair value |
206 |
1,792 |
1,120 |
10,700 | ||||||
RGE |
Exchange variation |
Financial expense - Other financial exp |
- |
- |
(969) |
(11,743) | ||||||
RGE |
Interest rate variation |
Financial expense - Other financial exp |
109 |
450 |
188 |
321 | ||||||
RGE |
Mark to market |
Financial expense - Derivatives adjust fair value |
104 |
92 |
(155) |
422 | ||||||
9,964 |
(12,844) |
(51,339) |
(386,077) | |||||||||
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$ 139,214 (R$ 67,825 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 gain of R$ 8,747 (R$ 4,262 in proportion to the participation of CPFL Geração) in the third quarter of 2010 and a gain of R$ 15,351 (R$ 7,479 in proportion to the participation of CPFL Geração) in the same period of 2009. The compensation of these amounts will occur after the respective tariff adjustment process, respecting the existing conditions of each contract.
The subsidiary CPFL Paulista also has a total indebtedness in foreign currency of R$ 468,790. As a hedge against exchange exposure, it contracted derivatives used as a hedge directly tied to the indebtedness of R$ 420,618. To minimize the exchange exposure, the subsidiary also contracted a non tied derivative of R$ 29,126 and also has sufficient assets indexed in dollars (fund tied to foreign currency loans – Note 11) to offset any exchange impact.
d) 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 September 30, 2010 were maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:
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: September 30, 2010
Consolidated | ||||||||||
Instruments |
Exposure |
Risk |
Exchange depreciation of 9%* |
Exchange depreciation of 25%** |
Exchange depreciation of 50%** | |||||
Financial asset instruments |
21,578 |
apprec.dollar |
1,871 |
5,395 |
10,789 | |||||
Financial liability instruments |
(197,613) |
apprec.dollar |
(17,135) |
(49,407) |
(98,807) | |||||
Derivatives - Plain Vanilla Swap |
92,076 |
apprec.dollar |
7,983 |
23,020 |
46,038 | |||||
(83,959) |
(7,281) |
(20,992) |
(41,980) | |||||||
Financial liability instruments |
(420,618) |
apprec.yen |
(36,471) |
(105,154) |
(210,309) | |||||
Derivatives - Plain Vanilla Swap |
420,618 |
apprec.yen |
36,471 |
105,154 |
210,309 | |||||
- |
- |
- |
- | |||||||
(83,959) |
(7,281) |
(20,992) |
(41,980) | |||||||
* 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 as of September 30, 2010 were to be maintained, and (ii) the respective accumulated annual indexes as of that date were to remain stable (CDI of 9,20% p.a.; IGP-M of 7,77% 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$ 525,808. 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 |
|
1,565,951 |
|
CDI variation |
|
39,294 |
43,036 |
86,073 | ||
Financial liability instruments |
|
(4,851,857) |
CDI variation |
(110,365) |
(120,875) |
(241,752) | ||||
Derivatives - Plain Vanilla Swap |
|
(622,815) |
CDI variation |
(13,079) |
(14,325) |
(28,651) | ||||
|
(3,908,721) |
(84,150) |
(92,164) |
(184,330) | ||||||
|
||||||||||
Financial asset instruments |
|
85,985 |
IGP-M variation |
(808) |
1,670 |
3,341 | ||||
Financial liability instruments |
|
(264,155) |
IGP-M variation |
889 |
(4,249) |
(8,498) | ||||
Derivatives - Plain Vanilla Swap |
|
- |
IGP-M variation |
- |
- |
- | ||||
|
(178,170) |
81 |
(2,579) |
(5,157) | ||||||
|
||||||||||
Financial liability instruments |
|
(2,762,725) |
TJLP variation |
3,869 |
(41,441) |
(82,880) | ||||
Financial liability instruments |
|
105,836 |
Fixed rate |
(148) |
1,588 |
3,175 | ||||
|
(2,656,889) |
3,721 |
(39,853) |
(79,705) | ||||||
|
|
|||||||||
Total increase |
|
(6,743,780) |
|
|
|
(80,348) |
|
(134,596) |
|
(269,192) |
|
|
|
|
|
|
|
|
|
|
|
* The CDI, IGP-M and TJLP indexes considered of 11.30%, 6.83% and 5.86%, respectively, were obtained from information available in the market | ||||||||||
**In compliance with CVM Instruction 475/08 |
( 32 ) REGULATORY ASSETS AND LIABILITIES
The Company accounts for the following assets and liabilities for regulatory purposes, which are not recognized in the consolidated financial statements, as mentioned in Note 3.13.
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: September 30, 2010
Consolidated | |||||
|
September 30, 2010 |
December 31, 2009 | |||
Assets |
|||||
Consumers, Concessionaires and Licensees |
|||||
Discounts TUSD (*) and Irrigation |
34,077 |
12,753 | |||
Other financial components |
- |
199 | |||
34,077 |
12,952 | ||||
Deferred Costs Variations |
|||||
Parcel "A" |
666 |
1,290 | |||
CVA (**) |
304,552 |
374,336 | |||
305,218 |
375,626 | ||||
Prepaid Expenses |
|||||
Increase in PIS and COFINS |
- |
259 | |||
Overcontracting |
36,587 |
100,326 | |||
Low income consumers' subsidy - Losses |
44,831 |
55,506 | |||
Neutrality of the sector charges |
1,337 |
- | |||
Tariff adjustment |
22,226 |
- | |||
Other financial components |
48,819 |
11,297 | |||
153,800 |
167,388 | ||||
Liabilities |
|||||
Deferred Gains Variations |
|||||
Parcel "A" |
(22,906) |
(44,419) | |||
CVA |
(380,697) |
(377,735) | |||
(403,603) |
(422,154) | ||||
Other Accounts Payable |
|||||
Tariff review |
- |
(89,261) | |||
Discounts TUSD and Irrigation |
(2,666) |
(991) | |||
Tariff adjustment |
(7,234) |
- | |||
Overcontracting |
(52,659) |
(17,541) | |||
Low income consumers' subsidy - Gains |
(3,172) |
(6,011) | |||
Neutrality of the sector charges |
(50,030) |
- | |||
Other financial components |
(31,449) |
(12,138) | |||
|
(147,210) |
(125,942) | |||
Total net |
(57,718) |
7,870 | |||
(*) Network Usage Charge - TUSD |
|||||
(**) Deferred Tariff Costs and Gains Variations from Parcel "A" itens - ("CVA") |
88
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
( 33 ) SUBSEQUENT EVENT
Foz do Chapecó
On October 15, 2010 the first unit of the four generators of the Foz do Chapeco power plant went into commercial operation, as described in note 1.
Tariff Adjustment - CPFL Piratininga
By means of Ratification Resolution nº 1,075 of October 19, 2010, ANEEL set the Annual Tariff Adjustment for CPFL Piratininga at an average percentage of 10.11%, with 5.66% of perception of consumer.
89
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
07.01 – COMMENTS ON PERFORMANCE IN THE QUARTER
Analysis of Results – CPFL Energia (parent company)
Net income was R$ 344,148 in the third quarter of 2010, a decrease of 23.3% (R$ 104,618) compared to the same quarter of the previous year, due mainly to results of equity in subsidiaries, as shown below:
3rd quarter 2010 |
3rd quarter 2009 | ||
CPFL Paulista |
125,155 |
224,360 | |
CPFL Piratininga |
61,067 |
66,475 | |
RGE |
73,414 |
36,671 | |
CPFL Santa Cruz |
3,320 |
8,933 | |
CPFL Leste Paulista |
3,481 |
3,931 | |
CPFL Jaguari |
2,588 |
1,585 | |
CPFL Sul Paulista |
3,847 |
3,560 | |
CPFL Mococa |
1,931 |
2,448 | |
CPFL Geração |
51,729 |
76,000 | |
CPFL Brasil |
49,953 |
61,848 | |
CPFL Atende |
734 |
6 | |
CPFL Planalto |
2,907 |
1,603 | |
CPFL Serviços |
1,391 |
(1,950) | |
CPFL Jaguariúna |
(250) |
6 | |
CPFL Jaguari Geração |
2,353 |
2,514 | |
|
|
|
|
Total |
383,620 |
|
487,990 |
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: September 30, 2010
12.01 – COMMENTS ON CONSOLIDATED PERFORMANCE IN THE QUARTER
CPFL Energia (Consolidated)
Information |
Consolidated | |||||
3rd quarter |
Nine month | |||||
2010 |
2009 |
Variation |
2010 |
2009 |
Variation | |
GROSS REVENUE |
4,494,484 |
4,243,993 |
5.9% |
12,965,301 |
12,101,072 |
7.1% |
Electricity sales to final consumers (¹) |
2,076,584 |
2,005,695 |
3.5% |
5,993,957 |
5,584,916 |
7.3% |
Electricity sales to wholesaler |
348,380 |
324,682 |
7.3% |
845,887 |
960,390 |
-11.9% |
Revenue from concession infrastructure construction |
295,403 |
160,216 |
84.4% |
698,867 |
410,678 |
70.2% |
Other operating revenues (¹) |
1,774,117 |
1,753,400 |
1.2% |
5,426,590 |
5,145,088 |
5.5% |
DEDUCTION FROM OPERATING REVENUE |
(1,395,609) |
(1,319,402) |
5.8% |
(4,120,142) |
(3,738,314) |
10.2% |
NET OPERATING REVENUE |
3,098,875 |
2,924,591 |
6.0% |
8,845,159 |
8,362,758 |
5.8% |
ENERGY COST |
(1,665,778) |
(1,512,363) |
10.1% |
(4,582,560) |
(4,527,153) |
1.2% |
Electricity purchased for resale |
(1,379,348) |
(1,248,052) |
10.5% |
(3,723,117) |
(3,745,321) |
-0.6% |
Electricity network usage charges |
(286,430) |
(264,311) |
8.4% |
(859,443) |
(781,832) |
9.9% |
OPERATING COST/EXPENSE |
(811,098) |
(640,321) |
26.7% |
(2,154,817) |
(1,835,532) |
17.4% |
Personnel |
(147,737) |
(137,024) |
7.8% |
(441,095) |
(414,080) |
6.5% |
Employee pension plan |
21,800 |
(900) |
-2522.2% |
65,405 |
(2,734) |
-2492.3% |
Material |
(21,412) |
(17,669) |
21.2% |
(57,626) |
(50,797) |
13.4% |
Outsourced Services |
(111,254) |
(94,861) |
17.3% |
(320,223) |
(282,849) |
13.2% |
Infrastructure construction costs |
(295,403) |
(160,216) |
84.4% |
(698,867) |
(410,678) |
70.2% |
Depreciation and Amortization |
(120,982) |
(119,609) |
1.1% |
(359,051) |
(361,296) |
-0.6% |
Amortization of intangible asset of concession |
(46,511) |
(47,645) |
-2.4% |
(139,240) |
(142,932) |
-2.6% |
Other |
(89,599) |
(62,397) |
43.6% |
(204,120) |
(170,166) |
20.0% |
OPERATING INCOME |
621,999 |
771,907 |
-19.4% |
2,107,782 |
2,000,073 |
5.4% |
FINANCIAL INCOME (EXPENSE) |
(73,100) |
(66,860) |
9.3% |
(239,231) |
(218,152) |
9.7% |
Income |
129,825 |
78,376 |
65.6% |
332,117 |
252,772 |
31.4% |
Expense |
(202,925) |
(145,236) |
39.7% |
(571,348) |
(470,924) |
21.3% |
Net income / (expense) |
(73,100) |
(66,860) |
9.3% |
(239,231) |
(218,152) |
9.7% |
INCOME BEFORE TAX |
548,899 |
705,047 |
-22.1% |
1,868,551 |
1,781,921 |
4.9% |
Social Contribution |
(52,641) |
(67,030) |
-21.5% |
(178,316) |
(170,167) |
4.8% |
Income Tax |
(145,477) |
(180,333) |
-19.3% |
(491,821) |
(466,876) |
5.3% |
NET INCOME FOR THE PERIOD |
350,781 |
457,684 |
-23.4% |
1,198,414 |
1,144,878 |
4.7% |
|
|
|
|
|
|
|
EBITDA |
767,692 |
940,061 |
-18.3% |
2,540,668 |
2,507,035 |
1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income for the Period and EBITDA Reconciliation (²) |
|
|
|
|
|
|
NET INCOME FOR THE PERIOD |
350,781 |
457,684 |
|
1,198,414 |
1,144,878 |
|
Employee Pension Plan |
(21,800) |
900 |
|
(65,405) |
2,734 |
|
Depreciation and Amortization |
167,493 |
167,254 |
|
498,291 |
504,228 |
|
Financial Income (Expense) |
73,100 |
66,860 |
|
239,231 |
218,152 |
|
Social Contribution |
52,641 |
67,030 |
|
178,316 |
170,167 |
|
Income Tax |
145,477 |
180,333 |
|
491,821 |
466,876 |
|
EBITDA |
767,692 |
940,061 |
|
2,540,668 |
2,507,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(¹) The reclassification of revenue from the Network Usage Charge - TUSD was not taken into account in presentation of the Comments on Consolidated Performance (note 24) | ||||||
(2) Information not reviwed by the independent accountants | ||||||
|
|
|
|
|
|
|
91
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
Gross Operating Revenue
The Gross Operating Revenue in the third quarter of 2010 was R$ 4,494,484, up 5.9% (R$ 250,491) on the same period of the previous year.
By excluding “Revenue from construction of concession infrastructure” (because it does not have effect in the Profit and Loss due to its related cost which is recorded at the same value), the Gross Operating Revenue would have an amount of R$ 4,199,081, an increase of 2.8% (R$ 115,304).
In spite of the billed energy sales having fallen slightly by R$ 1,194 as a result of the net effect of the 3.9% reduction in average prices practiced, caused mainly by the negative tariff adjustments of the ditributors and the increase of 4.1% in energy sales, gross operating revenue was positively impacted by the following factors:
· An increase of R$ 23,698 in the energy supplied, mainly due to the increase of R$ 31,339 in short-term electricity sales, as well as the price increase in the CCEE.This increase was partially offset by reduction in Other concessionaires, licensees and authorized.
· An increase of R$ 93,598 in Other Operating Revenue, due to the increase of R$ 98,698 in revenue due to the Use of the Distribution System – TUSD for free customers. This increase is mainly due to the revival of industrial activity, the effects of the tariff adjustment and the migration of captive clients to the free market, particularly in the case of CPFL Paulista.This increase was partially offset by reduction in Other revenue and income.
Ø Quantity of Energy Sold
An increase of 4.1% was recorded in the quantity of energy billed to final consumers in the third quarter of 2010.
The residential, commercial and industrial classes, which account for 84.3% of the energy sold to end users in the quarter and have the highest average tariffs, registered growth of 6.1%, 6.8% and 1.1% respectively, compared with the same quarter of the previous year.
The 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 same period last 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. However, growth in the third quarter was less than in the first half of the year, on account of the withdrawal of these tax incentives and the winding down of the inventory recomposition process. In addition, the migration of free customers resulted in a decrease in sales in the period.
In respect of the quantity of energy sold and transported within the concession area, which impacted both billed supply and the collection of TUSD, there was an increase of 7.5% compared with the same period of the previous year.
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: September 30, 2010
The quantity of energy supplied decreased 23.7% in the third quarter of 2010, both in the sales to the CCEE (short term sales), as a result of the lower energy balances, in the commercial segment (sales to other concessionaires, licensees and authorized sellers), due to the termination of several contracts.
Ø Tariffs
In the third quarter of 2010, the energy supply tariffs applied fell by an average of 3.9%, mainly due to the impacts of the tariff adjustments of the distribution subsidiaries:
Deductions from Operating Revenue
Deductions from Operating Income in the third quarter of 2010 amounted to R$ 1,395,609, an increase of 5.8% (R$ 76,207) in relation to the same quarter of 2009, mainly reflecting an increase of R$ 2,091 in taxes on revenue (PIS, COFINS and ICMS) and the increase of R$ 61,358 in CCC and CDE charges.
Cost of Electric Energy
Cost of Electric Energy in the quarter totaled R$ 1,665,778, representing an increase of 10.1% (R$ 153,415) 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$ 1,379,348, an increase of 10.5% (R$ 31,296). The variation reflected an increase of R$ 98,815 in energy purchased in restricted framework and R$ 23,075 in energy purchased in free market. These increases are explained due primarily to the tariff adjustments
Ø Tariff for the Use of the Distribution System
The balance of tariff for the Use of the Distribution System was R$ 286,430, an increase of 8.4% (R$ 22,119) in relation to the third quarter 2009, basically due to raise in charges, such as: System service charge – ESS (R$ 17,132), Reserve energy charge (R$ 12,385), Connection charge (R$ 7,094). These effects were partially offset by a reduction Basic network charge (R$ 17,432).
Operating Costs and Expense
Operating costs and expenses in the quarter amounted to R$ 811,098, an increase of 26.7% (R$ 170,777) compared to the same period of the previous year.
93
(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: September 30, 2010
Operating costs and expense would have an amount of R$ 515,965, a decrease of 7.4% (R$ 35,590) by excluding “Costs related to infrastructure construction” (because it does not have effect in the Profit and Loss due to its related revenue which is recorded at the same value), mainly due to:
· Employee Pension Plan: recorded income of R$ 21,800 in the quarter and expense of R$ 900 in the third quarter of 2009, largely as a result of the nominal earnings expected on the plan assets, based on an Actuarial Report;
· Personnel: expenses relating to Personnel presented an increase of R$ 10,713, mainly as a result of the wage increases determined in collective bargaining agreements and an increase in the number of employees basically due to the business expansion by service companies.
· Outsourced Services: an increase of R$ 16,393 as a result of price increases; maintenance expenses relating to the electricity system, telephone services and providing reinforcement for the technical staff;
· Other Expenses: an increase of R$ 26,068, particularly in terms of Legal, Court and Indemnity expenses, which increased R$18,852, mainly due to the provision for labor claims recorded by CPFL Paulista (see note 21) and by the increase of R$ 6,798 in Publicity and Advertising Expenses.
Financial Income (Expense)
The Net Financial Income (Expense) in the third quarter of 2010 was an expense of R$ 73,100, representing an increase of 9.3% (R$ 6,240) compared with the same period of 2009:
Ø The financial income increased R$ 51,449 (65.6%), mainly due to:
· An increase of R$ 24,764 in earnings on short-term financial investments as a result of the higher balance of cash and cash equivalents in the third quarter of 2010;
· An increase of R$ 15,505 in monetary and exchange restatement, deferred taxes and escrow deposits.
Ø The financial expense increased R$ 57,689 (39.7%) mainly due to:
· An increase of R$ 43,196 in debt charges and R$ 12,661 in monetary and exchange restatement , mainly due to the increase in indebtedness in the period and the increase of indicators used to correct debts, particularly the CDI index.
Social Contribution and Income Tax
Taxes on income in the third quarter of 2010 totaled R$ 198,118, a decrease of 19.9% (R$ 49,245) in relation to the same quarter of 2009, mainly as a result of the 22.1% decrease in pre-tax income.
Net income and EBITDA
94
(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: September 30, 2010
As a result of the above factors, the net income for the quarter was R$ 350,781, 23.4% (R$ 106,903) lower 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 third quarter of 2010 was R$ 767,692, 18.3% (R$ 172,369) lower than the EBITDA for the same period of 2009.
95
(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: September 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 |
29.80 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
109,809,901 |
109,809,901 | ||||
02 |
CPFL GERAÇÃO DE ENERGIA S/A |
03.953.509/0001-47 |
PUBLIC SUBSIDIARY |
100.00 |
22.27 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
205,487,715,793 |
205,487,715,790 | ||||
03 |
CPFL COMERCIALIZAÇÃO BRASIL S/A |
04.973.790/0001-42 |
PRIVATE SUBSIDIARY |
100.00 |
2.11 | |
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 |
7.71 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
53,031,258,899 |
53,031,258,896 | ||||
05 |
RIO GRANDE ENERGIA S/A |
02.016.439/0001-38 |
PUBLIC SUBSIDIARY |
100.00 |
23,17 | |
COMMERCIAL, INDUSTRIAL AND OTHER |
807,168,582 |
807,168,578 | ||||
96
(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: September 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 |
97
(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: September 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 September 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.
98
(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: September 30, 2010
20.01 – OTHER IMPORTANT INFORMATION ON THE COMPANY
Shareholders |
Common shares |
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 |
2,824 |
- | ||
Other shareholders |
107,711,497 |
22.39 | ||
Total |
481,137,130 |
100.00 |
Quantity and characteristic of secutiries held by Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of September
09/30/2010 |
09/30/2009 | |||||||
Shareholders |
Common shares |
Interest - % |
Common shares |
Interest - % | ||||
Controlling shareholders |
333,314,879 |
69.28 |
333,314,881 |
69.45 | ||||
Administrator |
- |
|||||||
Executive officers |
2,824 |
0.00 |
31,152 |
0.01 | ||||
Board of directors |
112 |
0.00 |
3,110 |
0.00 | ||||
Fiscal Council Members |
- |
- |
- |
- | ||||
Other shareholders - free float |
147,819,315 |
30.72 |
146,561,795 |
30.54 | ||||
Total |
481,137,130 |
100.00 |
479,910,938 |
100.00 | ||||
Outstanding shares |
147,819,315 |
30.72 |
146,561,795 |
30.54 |
99
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FEDERAL GOVERNMENT
BRAZILIAN SECURITIES COMMISSION (CVM)
QUARTERLY INFORMATION – ITR Brazilian Corporation Law
COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES Date: September 30, 2010
Shareholders of VBC Energia S/A holding more than 5% of the shares of the same type and class, up to individual level, as of September 30, 2010: | |||||||
Shareholders |
Common Shares |
% |
Preferred Shares |
% |
TOTAL |
% | |
(a) |
Átila Holdings S/A |
1,815,927 |
46.55 |
70,530 |
50.00 |
1,886,457 |
46.67 |
(b) |
Camargo Corrêa Energia S.A. |
1,339,149 |
34.33 |
47,018 |
33.33 |
1,386,167 |
34.29 |
(c) |
Camargo Corrêa S.A. |
581,201 |
14.90 |
23,512 |
16.67 |
604,713 |
14.96 |
Other shareholders |
164,951 |
4.22 |
- |
- |
164,951 |
4.08 | |
Total |
3,901,228 |
100.00 |
141,060 |
100.00 |
4,042,288 |
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) |
Construções e Comércio Camargo Corrêa S.A. |
||||||
Shareholders |
Common Shares |
% |
Preferred Shares |
% |
TOTAL |
% | |
(c) |
Camargo Corrêa S.A. |
318,069 |
100.00 |
87,772 |
99.99 |
405,841 |
99.99 |
Other shareholders |
5 |
- |
8 |
0.01 |
13 |
0.01 | |
Total |
318,074 |
100.00 |
87,780 |
100.00 |
405,854 |
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 |
749,998 |
33.33 |
- |
- |
749,998 |
11.11 |
(h) |
RCNON Empreendimentos e Participações S.A |
749,998 |
33.33 |
- |
- |
749,998 |
11.11 |
(i) |
RCPODON Empreendimentos e Participações S.A |
749,998 |
33.33 |
- |
- |
749,998 |
11.11 |
(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 |
6 |
0.01 |
- |
- |
6 |
0.01 | |
Total |
2,250,000 |
100.00 |
4,500,000 |
100.00 |
6,750,000 |
100.00 | |
(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 |
100
(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: September 30, 2010
( 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 |
101
(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: September 30, 2010
Shareholder's 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 September 30, 2010: | |||||||
Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I |
|||||||
Shareholders |
Cotas |
% |
|||||
Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI |
130,163,541 |
100.00 |
|||||
Total |
130,163,541 |
100.00 |
|||||
Shareholder's composition of BONAIRE Parcipações S.A. holding more than 5% of the shares of the same type and class, up to the individuals level, as of September 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 |
Cotas |
% |
|||||
Fundação CESP |
353,528,507 |
100.00 |
|||||
Total |
353,528,507 |
100.00 |
|||||
Shareholder's composition 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 September 30, 2010: | |||||||
Shareholders |
Common Shares |
% |
|||||
Banco Nacional de Desenv. Econômico e Social ( * ) |
1 |
100.00 |
|||||
Total |
1 |
100.00 |
|||||
( * ) |
State agency - Federal Government |
||||||
Number of shares is 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 Company’s By-Laws.
102
(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: September 30, 2010
Social Report / Nine-month period ended in September 2010 and 2009 (*) |
||||||
Company: CPFL ENERGIA S.A. |
||||||
1 - Basis for Calculation |
9 month-period ended September 2010 Value (R$ thousand) |
9 month-period ended September 2009 Value (R$ thousand) | ||||
Net Revenues (NR) |
8,845,159 |
8,362,758 | ||||
Operating Result (OR) |
1,868,551 |
1,781,921 | ||||
Gross Payroll (GP) |
392,854 |
359,500 | ||||
2 - Internal Social Indicators |
Value (000) |
% of GP |
% of NR |
Value (000) |
% of GP |
% of NR |
Food |
30,935 |
7.87% |
0.35% |
29,268 |
8.14% |
0.35% |
Mandatory payroll taxes |
106,701 |
27.16% |
1.21% |
94,696 |
26.34% |
1.13% |
Private pension plan |
19,274 |
4.91% |
0.22% |
17,924 |
4.99% |
0.21% |
Health |
23,164 |
5.90% |
0.26% |
20,852 |
5.80% |
0.25% |
Occupational safety and health |
1,612 |
0.41% |
0.02% |
1,450 |
0.40% |
0.02% |
Education |
1,754 |
0.45% |
0.02% |
1,428 |
0.40% |
0.02% |
Culture |
0 |
0.00% |
0.00% |
0 |
0.00% |
0.00% |
Trainning and professional development |
7,285 |
1.85% |
0.08% |
3,870 |
1.08% |
0.05% |
Day-care / allowance |
1,113 |
0.28% |
0.01% |
824 |
0.23% |
0.01% |
Profit / income sharing |
31,062 |
7.91% |
0.35% |
31,444 |
8.75% |
0.38% |
Others |
3,929 |
1.00% |
0.04% |
2,082 |
0.58% |
0.02% |
Total - internal social indicators |
226,829 |
57.74% |
2.56% |
203,838 |
56.70% |
2.44% |
3 - External Social Indicators |
Value (000) |
% of OR |
% of NR |
Value (000) |
% of OR |
% of NR |
Education |
533 |
0.03% |
0.01% |
1,346 |
0.08% |
0.02% |
Culture |
7,282 |
0.39% |
0.08% |
8,442 |
0.47% |
0.10% |
Health and sanitation |
1,864 |
0.10% |
0.02% |
452 |
0.03% |
0.01% |
Sport |
40 |
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 |
1,559 |
0.08% |
0.02% |
535 |
0.03% |
0.01% |
Total contributions to society |
11,278 |
0.60% |
0.13% |
10,890 |
0.61% |
0.13% |
Taxes (excluding payroll taxes) |
4,178,796 |
223.64% |
47.24% |
3,800,612 |
213.29% |
45.45% |
Total - external social indicators |
4,190,074 |
224.24% |
47.37% |
3,811,502 |
213.90% |
45.58% |
4 - Environmental Indicators |
Value (000) |
% of OR |
% of NR |
Value (000) |
% of OR |
% of NR |
Investments relalated to company production / operation |
73,304 |
3.92% |
0.83% |
65,699 |
3.69% |
0.79% |
Investments in external programs and/or projects |
58,271 |
3.12% |
0.66% |
47,678 |
2.68% |
0.57% |
Total environmental investments |
131,575 |
7.04% |
1.49% |
113,377 |
6.36% |
1.36% |
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 |
|
Nine month 2010 |
|
|
Nine month 2009 |
|
Nº of employees at the end of period |
7,664 |
7,369 | ||||
Nº of employees hired during the period |
1,030 |
701 | ||||
Nº of outsourced employees |
ND |
6,746 | ||||
Nº of interns |
252 |
199 | ||||
Nº of employees above 45 years age |
2,106 |
2,016 | ||||
Nº of women working at the company |
1,666 |
1,390 | ||||
% of management position occupied by women |
8.70% |
9.43% | ||||
Nº of Afro-Brazilian employees working at the company |
853 |
730 | ||||
% of management position occupied by Afro-Brazilian employees |
1.79% |
1.27% | ||||
Nº of employees with disabilities |
294 |
291 | ||||
6 - Relevant information regarding the exercise of corporate citizenship |
|
Nine month 2010 |
|
|
Nine month 2009 |
|
Ratio of the highest to the lowest compensation at company |
79.33 |
59.20 | ||||
Total number of work-related accidents |
13 |
7 | ||||
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 |
( ) are |
(x) are |
( ) are not |
( ) are |
(x) 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 530.416 |
in Procon 1.666 |
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): |
Nine-month-period 2010*: 6,479,878 |
Nine-month-period 2009* : 5,943,375 | ||||
Value-Added Distribution (VAD): |
66.15% government 5.6% employees |
65.36% government 6.72% employees | ||||
7 - Other Information |
|
|
|
|
|
|
Consolidated information | ||||||
* Adjusted to adequate to IFRS. |
||||||
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 |
103
(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: September 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 individual quarterly financial information of CPFL Energia S.A. (“The Company”) comprising the balance sheets, the statements of income, comprehensive income, shareholders’ equity and cash flows and the consolidated quarterly financial information of this Company and its subsidiaries, comprising the consolidated balance sheets, the consolidated statements of income, comprehensive income, shareholders’ equity and cash flows, both related to the quarter ended as of September 30, 2010, which include the footnotes and performance report, prepared under the responsibility of the Management.
2. 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.
3. Based on our special review, we are not aware of any material modifications that should be made to the individual quarterly financial information of CPFL Energia S.A. aforementioned, for it to be in conformity with accounting practices adopted in Brazil and the regulations issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly financial information.
4. Based on our special review, we are not aware of any material modifications that should be made to the consolidated quarterly financial information of CPFL Energia S.A. and its subsidiaries aforementioned, for it to be in conformity with International Financial Reporting Standards (IFRS) and the regulations issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly financial information
104
(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: September 30, 2010
5. As mentioned in footnote n° 5, during 2009 and 2010, were approved by CVM, several pronouncements, interpretations and technical guidance issued by the Committee for Accounting Pronouncements (CPC) in effect for 2010, which changed the accounting practices adopted in Brazil. These changes were adopted by the Company and its subsidiaries to the preparation of individual quarterly financial information of the Company of the quarter ended September 30, 2010 and disclosed in footnote no 5. This individual quarterly financial information has been restated, and thus, were different of the individual quarterly information presented in November 10, 2010, including our independent auditors´ review report dated by November 03, 2010. The individual quarterly financial information of the year and period ended on 2009 and 2010, prepared and restated to for comparative purpose, were adjusted to include the changes in account practices adopted in Brazil effective for 2010.
6. As mentioned in footnote n° 5, the Company and its subsidiaries since the fiscal year ended 2010, start the present their consolidated quarterly financial information in accordance with International Financial Reporting Standards (IFRS). The consolidated quarterly financial information of the Company and its subsidiaries for the year and periods ended 2009, prepared in accordance with aforementioned international accounting standards, are being presented for the comparison purpose.
7. Our review was conducted with the purpose to issue a review report on accounting information of quarterly financial information of this Company and its subsidiaries, referred in the first paragraph, as a whole. The statements of additional value, prepared under the responsibility of the Management, is not required by international accounting practices issued by IASB and is presented as additional information. Those additional information were subject to the same review procedures applied to the accounting information included in to the individual and consolidated quarterly financial information of CPFL Energia S.A. and its subsidiaries and, based on our review, we are not aware of any material modifications that should be made in this additional information to be presented in accordance with the accounting information included in to the quarterly information referred in the first paragraph, as a whole.
Campinas, April 13, 2011
KPMG Auditores Independentes
CRC 2SP014428/O-6
Jarib Brisola Duarte Fogaça
Contador CRC 1SP125991/O-0
105
(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).
106
(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).
107
(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: September 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 - 07/01/2010 to 09/30/2010 |
4 - 01/01/2010 to 09/30/2010 |
5 - 07/01/2009 to 09/30/2009 |
6 - 01/01/2009 to 09/30/2009 |
3.01 |
Operating revenues |
541,252 |
1,380,580 |
533,603 |
1,456,198 |
3.02 |
Deductions from operating revenues |
(57,758) |
(148,228) |
(52,909) |
(183,797) |
3.03 |
Net operating revenues |
483,494 |
1,232,352 |
480,694 |
1,272,401 |
3.04 |
Cost of sales and/or services |
(400,112) |
(978,492) |
(384,649) |
(1,023,850) |
3.04.01 |
Electric energy purchased for resale |
(391,420) |
(958,369) |
(377,887) |
(1,003,910) |
3.04.02 |
Electric energy network usage charges |
- |
(17) |
1 |
423 |
3.04.03 |
Material |
16 |
(61) |
(450) |
(836) |
3.04.04 |
Outsourced services |
(8,708) |
(20,045) |
(6,313) |
(19,527) |
3.05 |
Gross operating income |
83,382 |
253,860 |
96,045 |
248,551 |
3.06 |
Operating expenses/income |
(8,929) |
(24,543) |
(4,822) |
(10,578) |
3.06.01 |
Sales and Marketing |
(6,646) |
(22,378) |
(6,300) |
(18,739) |
3.06.02 |
General and administrative |
(2,820) |
(3,796) |
(515) |
(1,558) |
3.06.03 |
Financial |
537 |
1,631 |
1,993 |
9,719 |
3.06.03.01 |
Financial income |
7,077 |
17,331 |
4,646 |
12,073 |
3.06.03.02 |
Financial expenses |
(6,540) |
(15,700) |
(2,653) |
(2,354) |
108
(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: September 30, 2010
1 – Code |
2 – Description |
3 - 07/01/2010 to 09/30/2010 |
4 - 01/01/2010 to 09/30/2010 |
5 - 07/01/2009 to 09/30/2009 |
6 - 01/01/2009 to 09/30/2009 |
3.06.04 |
Other operating income |
- |
- |
- |
- |
3.06.05 |
Other operating expense |
- |
- |
- |
- |
3.06.06 |
Equity in subsidiaries |
- |
- |
- |
- |
3.07 |
Income from operations |
74,453 |
229,317 |
91,223 |
237,973 |
3.08 |
Nonoperating income (expense) |
- |
- |
- |
- |
3.08.01 |
Income |
- |
- |
- |
- |
3.08.02 |
Expenses |
- |
- |
- |
- |
3.09 |
Income before taxes on income and noncontrolling interest |
74,453 |
229,317 |
91,223 |
237,973 |
3.10 |
Income tax and social contribution |
(25,314) |
(77,235) |
(11,831) |
(55,481) |
3.10.01 |
Social contribution |
(6,737) |
(20,537) |
(4,799) |
(16,487) |
3.10.02 |
Income tax |
(18,577) |
(56,698) |
(7,032) |
(38,994) |
3.11 |
Deferred income tax and social contribution |
816 |
1,770 |
(17,555) |
(19,391) |
3.11.01 |
Social contribution |
217 |
469 |
(4,647) |
(5,133) |
3.11.02 |
Income tax |
599 |
1,301 |
(12,908) |
(14,258) |
3.12 |
Statutory profit sharing/contributions |
- |
- |
- |
- |
3.12.01 |
Profit sharing |
- |
- |
- |
- |
3.12.02 |
Contributions |
- |
- |
- |
- |
3.13 |
Reversal of interest on shareholders’ equity |
- |
- |
- |
- |
3.15 |
Net income (loss) for the period |
49,955 |
153,852 |
61,837 |
163,101 |
|
SHARES OUTSTANDING EX-TREASURY STOCK (in units) |
2,998,565 |
2,998,565 |
2,998,565 |
2,998,565 |
|
EARNINGS PER SHARE (Reais) |
16.65964 |
51.30854 |
20.62220 |
54.39302 |
|
LOSS PER SHARE (Reais) |
|
|
|
|
109
(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: September 30, 2010
22.01 COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
Subsidiary: CPFL COMERCIALIZAÇÃO BRASIL S.A.
Gross Operating Revenue
Consolidated Gross Operating Revenue for the third quarter of 2010 was R$ 541,252, an increase of R$ 7,649 (1.4%) in relation to the same quarter of 2009. This increase is basically explained by the net effect of: (i) increase in the parent company’s revenue from energy sales, which grew R$ 34,152 impacted by the increase of 24 GWh in volume of energy sales and 6.3% in the average price; (ii) decrease of R$ 16,465 related to supply contracts of subsidiaries CPFL Cone Sul and Clion; (iii) decline of R$ 10,038 regarding revenue from services rendered by the parent company.
Net Income and EBITDA
Net income of R$ 49,955 was recorded in the third quarter of 2010, a decrease of R$ 11,894 (19.2%), compared with the same quarter of 2009.
EBITDA (net income before Financial Income (Expense), income tax and social contribution, depreciation and amortization) for the third quarter of 2010 was R$ 74.626, 16.8% lower than the R$ 89,736 recorded in the same quarter of 2009 (information not reviewed by the Independent Auditors).
110
(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).
111
(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: September 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 September 30, 2010, filed with the CVM (Brazilian Securities Commission).
112
(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: September 30, 2010
23.01 – DESCRIPTION OF CHANGED INFORMATION
113
(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: September 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 JULY 01, 2010 TO SEPTEMBER 30, 2010 |
9 |
05 |
02 |
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO SEPTEMBER 30, 2010 |
10 |
08 |
01 |
CONSOLIDATED BALANCE SHEET - ASSETS |
11 |
08 |
02 |
CONSOLIDATED BALANCE SHEET - LIABILITIES |
12 |
09 |
01 |
CONSOLIDATED INCOME STATEMENT |
13 |
10 |
01 |
CONSOLIDATED STATEMENTS OF CASH FLOW |
14 |
11 |
01 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JULY 01, 2010 TO SEPTEMBER 30, 2010 |
15 |
11 |
02 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO SEPTEMBER 30, 2010 |
16 |
06 |
01 |
NOTES TO THE INTERIM FINANCE STATEMENTS |
17 |
07 |
01 |
COMMENTS ON PERFORMANCE IN THE QUARTER |
90 |
12 |
01 |
COMMENTS ON CONSOLIDATED PERFORMANCE OF THE QUARTER |
91 |
13 |
01 |
INVESTMENTS IN SUBSIDIARIES AND/OR ASSOCIATED COMPANIES |
96 |
14 |
01 |
CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES |
97 |
19 |
01 |
CAPITAL EXPENDITURES |
98 |
20 |
01 |
OTHER IMPORTANT INFORMATION ON THE COMPANY |
99 |
21 |
01 |
REPORT ON SPECIAL REVIEW-UNQUALIFIED |
104 |
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
106 |
|
|
COMPANHIA PAULISTA DE FORÇA E LUZ – CPFL |
|
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
107 |
|
|
CPFL GERAÇÃO DE ENERGIA S.A. |
|
22 |
01 |
INCOME STATEMENT OF SUBSIDIARIES |
108 |
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
110 |
|
|
CPFL COMERCIALIZAÇÃO BRASIL S.A. |
|
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
111 |
|
|
COMPANHIA PIRATININGA DE FORÇA E LUZ |
|
22 |
01 |
COMMENTS ON PERFORMANCE OF SUBSIDIARIES |
112 |
|
|
RIO GRANDE ENERGIA S.A. |
|
114
CPFL ENERGIA S.A. | ||
|
By: |
/S/ WILSON P. FERREIRA JUNIOR
|
Name: Title: |
Wilson P. Ferreira Junior 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.