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)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Summary
Registration data
General information | 1 |
Address | 2 |
Marketable securities | 3 |
Auditor | 4 |
Share registrer | 5 |
Investor Relations Officer or equivalent | 6 |
Shareholders’ Department | 7 |
(Free Translation of the original in Portuguese)
Registration Form – 2011 – CPFL ENERGIA S.A.
Version: 1
1 - General information
Company Name:
CPFL ENERGIA S.A.
Initial Company name:
08/06/2002
Type of participant:
Publicly quoted corporation
Previous company name:
Draft II Participações S.A
Date of Incorporation:
03/20/1998
CNPJ (Federal Tax ID):
02.429.144/0001-93
CVM CODE:
1866-0
Registration Date CVM:
05/18/2000
State of CVM Registration:
Active
Starting date of situation:
05/18/2000
Country:
Brazil
Country in which the marketable securities are held in custody:
Brazil
Foreign countries in which the marketable securities are accepted for trading
Country
Date of admission
United States
09/29/2004
Sector of activity:
Holding ( Electric Energy)
Description of activity:
Holdings
Issuer’s Category:
Category A
Registration Date on actual category:
01/01/2010
Issuer’s Situation:
Operational
Starting date of situation:
05/18/2000
Type of share control:
Private Holding
Date of last change of share control:
11/30/2009
Date of last change of company year:
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Day/Month of
year end:
31/12
Web address:
www.cpfl.com.br
Newspapers in which
issuer discloses its information:
Name of paper Jornal in which issuer discloses its information
FU
Valor Econômico
SP
2 - ADDRESS
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
3 - MARKETABLE SECURITIES
Shares | Trading | Listing | ||||||||||
Trading mkt | Managing body | Start date | End | Segment | Start date | End | ||||||
Bolsa | BM&FBOVESPA | 05/18/2000 | Novo Mercado | 9/29/2004 | ||||||||
Debentures | Trading | Listing | ||||||||||
Trading mkt |
Managing body |
Start date | End | Segment | Start date | End | ||||||
Organized Market | CETIP | 05/11/2000 | Traditional | 05/11/2000 | ||||||||
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
4 - AUDITOR INFORMATION
Is there an auditor?
Yes
CVM CODE:
418-9
Type of Auditor:
Brazilian
INDEPENDENT ACCOUNTANT:
KPMG Auditores Independentes
CNPJ:
57.755.217/0011-09
Service Provision Period:
04/01/2007
PARTNER IN CHARGE
Service Provision Period
CPF (INDIVIDUAL TAX ID)
Jarib Brisola Duarte Fogaça
04/01/2007
012.163.378-02
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
5 – SHARE REGISTRAR
Address: Rua Lélio Gama, 105 – 38º floor, Gecin, Centro, Rio de Janeiro, RJ, Brasil, ZIP CODE: 20031-080, Telephone (021) 38083551, FAX: (021) 38086088, e-mail: aescriturais@bb.com.br
Do you have service provider:
Yes
Corporate Name:
Banco do Brasil
CNPJ:
00.000.000/0001-91
Service Provision Period:
01/01/2011
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
6 – INVESTOR RELATIONS OFFICER
NAME:
Lorival Nogueira Luz Júnior
Investor Relations Director
CNPJ:
678.741.266-53
Address: Rodovia Campinas Mogi Mirim, Km 2,5, Jardim Santana, Campinas, SP, ZIP CODE: 13088-900, Telephone (019) 3756-6083, FAX: (019) 3756-6089, e-mail: lorival.luz@cpfl.com.br
Start date of activity:
03/21/2011
End date of activity:
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
7 – SHAREHOLDERS’ DEPARTMENT
Address: Rodovia Campinas Mogi Mirim, Km 2,5, Jardim Santana, Campinas, SP, ZIP CODE: 13088-900, Telephone (019) 3756-6083, FAX: (019) 3756-6089, e-mail: gustavoestrella@cpfl.com.br
Contact
Gustavo Estrella
Start date of activity:
11/01/2007
End date of activity:
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Table of Contents | |
Identification of Company | |
Capital Stock |
1 |
Cash dividend |
1 |
Parent Company Financial Statements | |
Balance Sheet Assets |
2 |
Balance Sheet Liabilities |
3 |
Income Statement |
4 |
Cash Flow Statements |
5 |
Statement of Changes in Shareholders Equity | |
01/01/2011 to 09/30/2011 |
6 |
01/01/2010 to 09/30/2010 |
6 |
Statements of Added Value |
7 |
Consolidated Financial Statements | |
Balance Sheet Assets |
8 |
Balance Sheet Liabilities |
9 |
Income Statement |
10 |
Cash Flow Statements |
11 |
Statement of Changes in Shareholders Equity | |
01/01/2011 to 09/30/2011 |
12 |
01/01/2010 to 09/30/2010 |
12 |
Statements of Added Value |
13 |
Comments on Performance |
14 |
Notes to Financial Statements |
27 |
Comments on performance and forecasts |
84 |
Other relevant information |
85 |
Reports | |
Independent Auditors’ Report Unqualified |
90 |
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Identification of Company / Capital Stock
Number of Shares (in units) |
Closing date |
Paid in Capital | |
Common |
962,274,260 |
Preferred |
0 |
Total |
962,274,260 |
Treasury Stock | |
Common |
0 |
Preferred |
0 |
Total |
0 |
Identification of Company/ Cash dividend
Event |
Approval |
Type |
Beginning of Payment |
Type of Share |
Class of share |
Amount per Share (Reais/share) |
Board of Directors Meeting |
08/10/2011 |
Dividend |
09/30/2011 |
ON (Common shares) |
|
0.77702 |
1
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
PARENT COMPANY FINANCIAL STATEMENTS - BALANCE SHEET - ASSETS |
|||
(in thousands of Brazilian reais – R$) |
|||
Code |
Description |
Current quarter |
Previous year |
1 |
Total assets |
7,270,570 |
7,041,917 |
1.01 |
Current assets |
762,572 |
601,635 |
1.01.01 |
Cash and cash equivalents |
561,373 |
110,958 |
1.01.02 |
Financial Investments |
44,744 |
42,533 |
1.01.02.02 |
Financial Investments at amortized cost |
44,744 |
42,533 |
1.01.02.02.01 |
Held for trade |
44,744 |
42,533 |
1.01.06 |
Recoverable taxes |
28,083 |
34,992 |
1.01.06.01 |
Current Recoverable taxes |
28,083 |
34,992 |
1.01.08 |
Other current assets |
128,372 |
413,152 |
1.01.08.03 |
Other |
128,372 |
413,152 |
1.01.08.03.01 |
Dividends and interest on shareholders’ equity |
125,913 |
412,647 |
1.01.08.03.02.01 |
Other |
2,434 |
505 |
1.01.08.03.02.02 |
Derivative |
25 |
0 |
1.02 |
Noncurrent assets |
6,507,998 |
6,440,282 |
1.02.01 |
Long - term assets |
236,386 |
272,797 |
1.02.01.02 |
Financial Investments at amortized cost |
12,679 |
39,216 |
1.02.01.02.01 |
Held to maturity |
12,679 |
39,216 |
1.02.01.06 |
Deferred taxes |
171,157 |
177,729 |
1.02.01.06.02 |
Deferred taxes credits |
171,157 |
177,729 |
1.02.01.08 |
Related parties |
21,027 |
14,875 |
1.02.01.08.02 |
Subsidiaries |
21,027 |
14,875 |
1.02.01.09 |
Other noncurrent assets |
31,523 |
40,977 |
1.02.01.09.03 |
Escrow deposits |
11,431 |
10,676 |
1.02.01.09.04 |
Recoverable taxes |
2,787 |
2,787 |
1.02.01.09.05 |
Other credits |
17,305 |
27,514 |
1.02.02 |
Investments |
6,271,333 |
6,167,072 |
1.02.02.01 |
Permanent equity interests |
6,271,333 |
6,167,072 |
1.02.02.01.02 |
Investments in subsidiares |
6,271,333 |
6,167,072 |
1.02.03 |
Property, plant and equipment |
133 |
158 |
1.02.04 |
Intangible assets |
146 |
255 |
2
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
PARENT COMPANY FINANCIAL STATEMENTS - BALANCE SHEET - LIABILITIES |
|||
(in thousands of Brazilian reais – R$) |
|||
Code |
Description |
Current quarter |
Previous year |
2 |
Total liabilities |
7,270,570 |
7,041,917 |
2.01 |
Current liabilities |
189,413 |
41,246 |
2.01.01 |
Social and Labor Obligations |
11 |
204 |
2.01.01.02 |
Labor Obligations |
11 |
204 |
2.01.01.02.01 |
Estimated Labor Obligation |
11 |
204 |
2.01.02 |
Suppliers |
1,320 |
1,768 |
2.01.03 |
Tax Obligations |
603 |
437 |
2.01.03.01 |
Federal Tax Obligations |
603 |
437 |
2.01.04 |
Loans and financing |
153,768 |
15,529 |
2.01.04.02 |
Debentures |
153,768 |
15,529 |
2.01.04.02.01 |
Interest on debentures |
3,768 |
15,529 |
2.01.04.02.01 |
Debentures |
150,000 |
0 |
2.01.05 |
Other Current liabilities |
33,711 |
23,308 |
2.01.05.02 |
Other |
33,711 |
23,308 |
2.01.05.02.01 |
Dividends and interest on shareholders equity |
17,745 |
16,360 |
2.01.05.02.04 |
Derivatives |
0 |
123 |
2.01.05.02.05 |
Other payable |
15,966 |
6,825 |
2.02 |
Noncurrent liabilities |
347,301 |
506,963 |
2.02.01 |
Loans and financing |
300,000 |
450,000 |
2.02.01.02 |
Debentures |
300,000 |
450,000 |
2.02.02 |
Other Noncurrent liabilities |
35,923 |
46,297 |
2.02.02.02 |
Other |
35,923 |
46,297 |
2.02.02.02.03 |
Derivatives |
43 |
460 |
2.02.02.02.04 |
Other payable |
35,880 |
45,837 |
2.02.04 |
Provisons |
11,378 |
10,666 |
2.02.04.01 |
Civil, Labor, Social and Tax Provisions |
11,378 |
10,666 |
2.02.04.01.01 |
Tax Provisions |
11,378 |
10,666 |
2.03 |
Shareholders’ equity |
6,733,856 |
6,493,708 |
2.03.01 |
Capital |
4,793,424 |
4,793,424 |
2.03.02 |
Capital reserves |
16 |
16 |
2.03.04 |
Profit reserves |
418,665 |
904,705 |
2.03.04.01 |
Legal reserves |
418,665 |
418,665 |
2.03.04.08 |
Additional Proposed dividend |
0 |
486,040 |
2.03.05 |
Accumulated profit or loss |
417,060 |
0 |
2.03.06 |
Revaluation Reserve |
1,104,691 |
795,563 |
2.06.06.01 |
Revaluation Reserve |
1,104,691 |
795,563 |
3
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
PARENT COMPANY FINANCIAL STATEMENTS - INCOME STATEMENT | |||||
(in thousands of Brazilian reais – R$) | |||||
Code |
Description |
YTD current quarter |
YTD current period |
YTD previous quarter |
YTD previous period |
3.01 |
Net revenues |
1 |
3 |
890 |
892 |
3.03 |
Operating income |
1 |
3 |
890 |
892 |
3.04 |
Operating income (expense) |
360,295 |
1,148,706 |
341,026 |
1,215,684 |
3.04.02 |
General and administrative |
-5,814 |
-21,954 |
-6,339 |
-17,361 |
3.04.05 |
Other |
-36,297 |
-108,892 |
-36,255 |
-108,495 |
3.04.06 |
Equity in subsidiaries |
402,406 |
1,279,552 |
383,620 |
1,341,540 |
3.05 |
Income before financial income and taxes |
360,296 |
1,148,709 |
341,916 |
1,216,576 |
3.06 |
Financial income / expense |
9,314 |
-10,444 |
78 |
-12,465 |
3.06.01 |
Financial income |
23,730 |
30,754 |
21,072 |
43,550 |
3.06.02 |
Financial expense |
-14,416 |
-41,198 |
-20,994 |
-56,015 |
3.07 |
Income before taxes |
369,610 |
1,138,265 |
341,994 |
1,204,111 |
3.08 |
Income tax and social contribution |
-891 |
-21,837 |
2,154 |
-21,935 |
3.08.01 |
Current |
-515 |
-15,265 |
296 |
-18,509 |
3.08.02 |
Deferred |
-376 |
-6,572 |
1,858 |
-3,426 |
3.09 |
Net income from continuing operations |
368,719 |
1,116,428 |
344,148 |
1,182,176 |
3.11 |
Net income |
368,719 |
1,116,428 |
344,148 |
1,182,176 |
3.99 |
Net Income per Share (Reais) |
|
1.16 |
|
1.23 |
3.99.01 |
Basic earnings per share |
|
1.16 |
|
1.23 |
4
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
PARENT COMPANY FINANCIAL STATEMENTS - STATEMENTS OF CASH FLOW – INDIRECT METHOD |
|||
(in thousands of Brazilian reais – R$) |
|||
|
|
YTD current period |
YTD previous period |
6.01 |
Net cash from operating activities |
1,652,015 |
1,216,905 |
6.01.01 |
Cash generated from operations |
-2,771 |
-12,767 |
6.01.01.01 |
Net income, including income tax and social contribution |
1,138,265 |
1,204,111 |
6.01.01.02 |
Depreciation and amortization |
109,025 |
108,600 |
6.01.01.03 |
Interest and monetary and exchange restatement |
29,489 |
16,057 |
6.01.01.04 |
Equity in subsidiaries |
-1,279,550 |
-1,341,540 |
6.01.01.05 |
Reserve for contingencies |
0 |
5 |
6.01.02 |
Variation on assets and liabilities |
1,654,786 |
1,229,672 |
6.01.02.01 |
Dividend and interest on shareholders’ equity received |
1,692,403 |
1,254,799 |
6.01.02.02 |
Recoverable taxes |
23,015 |
23,406 |
6.01.02.03 |
Escrow deposits |
-42 |
-633 |
6.01.02.04 |
Other operating assets |
8,280 |
217 |
6.01.02.05 |
Suppliers |
-448 |
-1,148 |
6.01.02.06 |
Income tax and social contribution paid |
-15,653 |
-18,790 |
6.01.02.07 |
Other taxes and social contributions |
222 |
-734 |
6.01.02.08 |
Interest on debts (paid) |
-51,984 |
-42,154 |
6.01.02.09 |
Other operating liabilities |
-1,007 |
14,709 |
6.02 |
Net cash in investing activities |
27,922 |
-8,057 |
6.02.02 |
Acquisition of property, plant and equipment |
0 |
-169 |
6.02.03 |
Financial investments |
34,615 |
32,503 |
6.02.04 |
Intangible assets increase |
-1 |
0 |
6.02.06 |
Advance for future capital increase |
0 |
-305 |
6.02.07 |
Intercompany loans with subsidiaries and associated companies |
-6,692 |
-40,113 |
6.02.08 |
Other |
0 |
27 |
6.03 |
Net cash in financing activities |
-1,229,522 |
-1,423,793 |
6.03.01 |
Payments of Loans, financing and debentures , net of derivatives |
-121 |
-198 |
6.03.02 |
Dividend and interest on shareholders’ equity paid |
-1,229,401 |
-1,423,595 |
6.05 |
Increase (decrease) in cash and cash equivalents |
450,415 |
-214,945 |
6.05.01 |
Cash and cash equivalents at beginning of period |
110,958 |
219126 |
6.05.02 |
Cash and cash equivalents at end of period |
561,373 |
4,181 |
5
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
PARENT COMPANY FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2011 TO SETEMEBER 30, 2011 (in thousands of Brazilian reais – R$) | |||||||
Code |
Description |
Capital |
Capital Reserves, options and treasury shares |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders’ Equity Total |
5.01 |
Opening balance |
4,793,424 |
16 |
904,705 |
0 |
795,563 |
6,493,708 |
5.03 |
Adjusted balance |
4,793,424 |
16 |
904,705 |
0 |
795,563 |
6,493,708 |
5.04 |
Capital transactions within shareholders |
0 |
0 |
-486,040 |
-744,744 |
0 |
-1,230,784 |
5.04.06 |
Dividend |
0 |
0 |
-486,040 |
-747,709 |
0 |
-1,233,749 |
5.04.08 |
Prescribed dividend |
|
|
|
2,965 |
0 |
2,965 |
5.05 |
Total comprehensive income |
0 |
0 |
0 |
1,161,804 |
309,128 |
1,470,932 |
5.05.01 |
Net income / Loss for the period |
0 |
0 |
0 |
1,116,428 |
0 |
1,116,428 |
5.05.02 |
Other comprehensive income |
0 |
0 |
0 |
45,376 |
309,128 |
354,504 |
5.05.02.03 |
Equity valuation adjustments on comprehensive income of subsidiaries |
0 |
0 |
0 |
45,376 |
309,128 |
354,504 |
5.07 |
Final balance |
4,793,424 |
16 |
418,665 |
417,060 |
1,104,691 |
6,733,856 |
PARENT COMPANY FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO SETEMBER 30, 2010 (in thousands of Brazilian reais – R$) | |||||||
Code |
Description |
Capital |
Capital Reserves, options and treasury shares |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders’ Equity Total |
5.01 |
Opening balance |
4,741,175 |
16 |
996,768 |
-234,278 |
765,667 |
6,269,348 |
5.03 |
Adjusted balance |
4,741,175 |
16 |
996,768 |
-234,278 |
765,667 |
6,269,348 |
5.04 |
Capital transactions within shareholders |
52,249 |
0 |
-655,017 |
-771,452 |
0 |
-1,374,220 |
5.04.01 |
Capital increase |
52,249 |
0 |
0 |
0 |
0 |
52,249 |
5.04.06 |
Dividend |
0 |
0 |
-655,017 |
-774,429 |
0 |
-1,429,446 |
5.04.08 |
Prescribed dividends |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
5.05 |
Total comprehensive income |
0 |
0 |
0 |
1,201,905 |
19,683 |
1,221,588 |
5.05.01 |
Net income / Loss for the period |
0 |
0 |
|
1,182,176 |
0 |
1,182,176 |
5.05.02 |
Other comprehensive income |
0 |
0 |
0 |
19,729 |
19,683 |
39,412 |
5.05.02.03 |
Equity valuation adjustments on comprehensive income of subsidiaries |
0 |
0 |
0 |
19,729 |
19,683 |
39,412 |
5.06 |
Internal changes in Shareholders´ equity |
0 |
0 |
0 |
0 |
0 |
0 |
5.06.04 |
Dividend proposed |
0 |
|
|
|
|
0 |
5.07 |
Final balance |
4,793,424 |
16 |
341,751 |
196,175 |
785,350 |
6,116,716 |
6
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
PARENT COMPANY FINANCIAL STATEMENTS - STATEMENTS OF ADDED VALUE | |||
(in thousands of Brazilian reais – R$) |
|||
|
|
YTD current period |
YTD previous period |
7.01 |
Revenues |
3 |
982 |
7.01.01 |
Sales of goods, products and services |
3 |
982 |
7.02 |
Inputs |
-17,611 |
-14,340 |
7.02.02 |
Material-Energy-Outsourced services-Other |
-14,016 |
-10,940 |
7.02.04 |
Other |
-3,595 |
-3,400 |
7.03 |
Gross added value |
-17,608 |
-13,358 |
7.04 |
Retentions |
-109,025 |
-108,600 |
7.04.01 |
Depreciation and amortization |
-133 |
-105 |
7.04.02 |
Other |
-108,892 |
-108,495 |
7.04.02.01 |
Intangible concession asset - amortization |
-108,892 |
-108,495 |
7.05 |
Net added value generated |
-126,633 |
-121,958 |
7.06 |
Added value received in transfer |
1,319,699 |
1,394,207 |
7.06.01 |
Equity in subsidiaries |
1,279,552 |
1,341,540 |
7.06.02 |
Financial expense |
40,147 |
52,667 |
7.07 |
Added Value to be Distributed |
1,193,066 |
1,272,249 |
7.08 |
Distribution of Added Value |
1,193,066 |
1,272,249 |
7.08.01 |
Personnel |
3,453 |
2,436 |
7.08.01.01 |
Direct Remuneration |
2,842 |
2,257 |
7.08.01.02 |
Benefits |
432 |
96 |
7.08.01.03 |
Government severance indemnity fund for employees-F.G.T.S. |
179 |
83 |
7.08.02 |
Taxes, Fees and Contributions |
31,924 |
31,578 |
7.08.02.01 |
Federal |
31,920 |
31,562 |
7.08.02.02 |
State |
4 |
0 |
7.08.02.03 |
Municipal |
0 |
16 |
7.08.03 |
Remuneration on third parties’ capital |
41,262 |
56,059 |
7.08.03.01 |
Interest |
41,188 |
55,996 |
7.08.03.02 |
Rental |
74 |
63 |
7.08.04 |
Remuneration on own capital |
1,116,427 |
1,182,176 |
7.08.04.01 |
Dividend |
747,708 |
774,429 |
7.08.04.03 |
Profit / loss for the period |
368,719 |
407,747 |
7
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CONSOLIDATED FINANCIAL STATEMENTS - BALANCE SHEET – ASSETS
(in thousands of Brazilian reais – R$)
Code |
Description |
Current quarter |
Previous year |
1 |
Total assets |
26,058,930 |
20,056,797 |
1.01 |
Current assets |
7,141,882 |
3,898,190 |
1.01.01 |
Cash and cash equivalents |
4,274,619 |
1,562,897 |
1.01.02 |
Financial Investments |
44,744 |
42,533 |
1.01.02.02 |
Financial Investments at amortized cost |
44,744 |
42,533 |
1.01.02.02.01 |
Held for trade |
44,744 |
42,533 |
1.01.03 |
Accounts Receivable |
1,865,275 |
1,816,073 |
1.01.03.01 |
Consumers |
1,865,275 |
1,816,073 |
1.01.04 |
Materials and suppliers |
42,816 |
24,856 |
1.01.06 |
Recoverable taxes |
208,659 |
193,020 |
1.01.06.01 |
Current recoverable taxes |
208,659 |
193,020 |
1.01.08 |
Other current assets |
705,769 |
258,811 |
1.01.08.03 |
Other |
705,769 |
258,811 |
1.01.08.03.01 |
Other credits |
444,535 |
253,813 |
1.01.08.03.02 |
Derivatives |
256,791 |
244 |
1.01.08.03.03 |
Leases |
4,443 |
4,754 |
1.02 |
Noncurrent assets |
18,917,048 |
16,158,607 |
1.02.01 |
Long Term assets |
4,175,512 |
3,787,268 |
1.02.01.02 |
Financial Investments amortized at cost |
46,837 |
72,823 |
1.02.01.02.01 |
Held to Maturity |
46,837 |
72,823 |
1.02.01.03 |
Accounts Receivable |
186,686 |
195,738 |
1.02.01.03.01 |
Consumers |
186,686 |
195,738 |
1.02.01.06 |
Deferred taxes |
1,096,980 |
1,183,460 |
1.02.01.09 |
Other noncurrent assets |
2,845,009 |
2,335,247 |
1.02.01.09.03 |
Derivatives |
224 |
82 |
1.02.01.09.04 |
Escrow deposits |
1,079,399 |
890,685 |
1.02.01.09.05 |
Recoverable taxes |
166,385 |
138,966 |
1.02.01.09.06 |
Leases |
24,729 |
26,315 |
1.02.01.09.07 |
Concession Financial assets |
1,233,886 |
934,646 |
1.02.01.09.08 |
Employee Pension Plan |
5,800 |
5,800 |
1.02.01.09.09 |
Investments at cost |
116,654 |
116,654 |
1.02.01.09.10 |
Other |
217,932 |
222,099 |
1.02.03 |
Property, Plant and Equipment |
6,982,472 |
5,786,465 |
1.02.04 |
Intangible assets |
7,759,064 |
6,584,874 |
8
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CONSOLIDATED FINANCIAL STATEMENTS - BALANCE SHEET – LIABILITIES AND SHAREHOLDRE'S EQUITY
(in thousands of Brazilian reais – R$)
Code |
Description |
Current quarter |
Previous year |
2 |
Total liabilities |
26,058,930 |
20,056,797 |
2.01 |
Current liabilities |
4,877,576 |
4,428,322 |
2.01.01 |
Social and Labor Obligations |
121,574 |
58,688 |
2.01.01.02 |
Labor Obligations |
121,574 |
58,688 |
2.01.01.02.01 |
Accrued liabilities related to personnel |
121,574 |
58,688 |
2.01.02 |
Suppliers |
1,197,365 |
1,047,385 |
2.01.03 |
Tax payable |
488,434 |
455,248 |
2.01.04 |
Loans and financing |
2,325,148 |
2,247,407 |
2.01.04.01 |
Loans and financing |
1,504,261 |
619,383 |
2.01.04.01.01 |
In local currency |
1,499,076 |
615,201 |
2.01.04.01.02 |
In foreign currency |
5,185 |
4,182 |
2.01.04.02 |
Debentures |
820,887 |
1,628,024 |
2.01.04.02.01 |
Debentures |
602,859 |
1,509,958 |
2.01.04.02.02 |
Interest on Debentures |
218,028 |
118,066 |
2.01.05 |
Other Obligations |
745,055 |
619,594 |
2.01.05.02 |
Other |
745,055 |
619,594 |
2.01.05.02.01 |
Dividends and interest on equity |
21,603 |
23,813 |
2.01.05.02.04 |
Derivatives |
0 |
3,982 |
2.01.05.02.05 |
Employee pension plans |
37,967 |
40,103 |
2.01.05.02.06 |
Regulatory charges |
145,065 |
123,541 |
2.01.05.02.07 |
Public Utilities |
27,212 |
17,287 |
2.01.05.02.08 |
Other Payables |
513,208 |
410,868 |
2.02 |
Noncurrent liabilities |
13,084,080 |
8,878,819 |
2.02.01 |
Loans and financing |
11,061,055 |
7,159,312 |
2.02.01.01 |
Loans and financing |
6,619,615 |
4,946,998 |
2.02.01.01.01 |
In local currency |
4,434,476 |
4,481,421 |
2.02.01.01.02 |
In foreigh currency |
2,185,139 |
465,577 |
2.02.01.02 |
Debenture |
4,441,440 |
2,212,314 |
2.02.02 |
Other Obligations |
1,057,065 |
1,150,475 |
2.02.02.02 |
Other |
1,057,065 |
1,150,475 |
2.02.02.02.03 |
Derivatives |
46 |
7,883 |
2.02.02.02.04 |
Employee pension plans |
454,993 |
570,877 |
2.02.02.02.05 |
Taxes and Social Contributions Payable |
625 |
960 |
2.02.02.02.06 |
Public Utilities |
437,301 |
429,632 |
2.02.02.02.07 |
Other Payables |
164,100 |
141,123 |
2.02.03 |
Deferred taxes |
651,892 |
277,767 |
2.02.03.01 |
Income tax and social contribution deferred |
651,892 |
277,767 |
2.02.04 |
Provisions |
314,068 |
291,265 |
2.02.04.01 |
Reserve for contingencies |
314,068 |
291,265 |
2.03 |
Consolidated Shareholders’ Equity |
8,097,274 |
6,749,656 |
2.03.01 |
Capital |
4,793,424 |
4,793,424 |
2.03.02 |
Capital reserves |
16 |
16 |
2.03.03 |
Revaluation Reserve |
1,104,691 |
795,563 |
2.03.04 |
Profit reservers |
418,665 |
904,705 |
2.03.04.01 |
Legal |
418,665 |
418,665 |
2.03.04.08 |
Additional Proposed Dividend |
0 |
486,040 |
2.03.05 |
Accumulated profit or loss |
417,060 |
0 |
2.03.09 |
Noncontrolling interests |
1,363,418 |
255,948 |
9
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CONSOLIDATED FINANCIAL STATEMENTS - INCOME STATEMENT
(in thousands of Brazilian reais – R$)
Code |
Description |
YTD current quarter |
YTD current period |
YTD previous quarter |
YTD previous period |
3.01 |
Net revenues |
3,292,224 |
9,359,864 |
3,098,875 |
8,845,159 |
3.02 |
Cost of electric energy services |
-2,232,674 |
-6,223,783 |
-2,219,647 |
-6,037,651 |
3.02.01 |
Cost of electric energy |
-1,635,616 |
-4,578,729 |
-1,665,778 |
-4,582,560 |
3.02.02 |
Operation cost |
-282,157 |
-865,525 |
-256,275 |
-751,597 |
3.02.03 |
Cost of services to third parties |
-314,901 |
-779,529 |
-297,594 |
-703,494 |
3.03 |
Operating income |
1,059,550 |
3,136,081 |
879,228 |
2,807,508 |
3.04 |
Operating expenses |
-277,079 |
-862,564 |
-257,229 |
-699,726 |
3.04.01 |
Sales |
-84,512 |
-262,714 |
-67,573 |
-211,431 |
3.04.02 |
General and administrative |
-135,628 |
-431,722 |
-133,312 |
-323,520 |
3.04.05 |
Others |
-56,939 |
-168,128 |
-56,344 |
-164,775 |
3.05 |
Income before financial income and taxes |
782,471 |
2,273,517 |
621,999 |
2,107,782 |
3.06 |
Financial income / expense |
-205,203 |
-518,358 |
-73,100 |
-239,231 |
3.06.01 |
Financial income |
220,146 |
471,584 |
129,825 |
332,117 |
3.06.02 |
Financial expense |
-425,349 |
-989,942 |
-202,925 |
-571,348 |
3.07 |
Income before taxes |
577,268 |
1,755,159 |
548,899 |
1,868,551 |
3.08 |
Income tax and social contribution |
-198,204 |
-616,137 |
-198,118 |
-670,137 |
3.08.01 |
Current |
-195,022 |
-556,290 |
-203,679 |
-592,636 |
3.08.02 |
Deferred |
-3,182 |
-59,847 |
5,561 |
-77,501 |
3.09 |
Net income from continuing operation |
379,064 |
1,139,022 |
350,781 |
1,198,414 |
3.11 |
Consolidated net income |
379,064 |
1,139,022 |
350,781 |
1,198,414 |
3.11.01 |
Attributable to controlling shareholders |
368,718 |
1,116,428 |
344,148 |
1,182,176 |
3.11.02 |
Attributable to noncontrolling shareholders |
10,346 |
22,594 |
6,633 |
16,238 |
10
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CONSOLIDATED FINANCIAL STATEMENTS - STATEMENTS OF CASH FLOW – Indirect method
(in thousands of Brazilian reais – R$)
Code |
Description |
YTD current period |
YTD previous period |
6.01 |
Net cash from operating activities |
2,006,165 |
1,694,474 |
6.01.01 |
Cash generated from operations |
3,133,510 |
2,584,137 |
6.01.01.01 |
Net income, including income tax and social contribution |
1,755,159 |
1,868,551 |
6.01.01.02 |
Depreciation and amortization |
584,191 |
498,291 |
6.01.01.03 |
Reserve for contingencies |
17,976 |
-143,233 |
6.01.01.04 |
Interest and monetary and exchange restatement |
834,243 |
413,900 |
6.01.01.05 |
Gain on pension plan |
-67,056 |
-65,405 |
6.01.01.06 |
Losses on disposal of noncurrent assets |
1,302 |
1,946 |
6.01.01.07 |
Deferred taxes - PIS and COFINS |
7,695 |
5,407 |
6.01.01.08 |
Other |
0 |
4,680 |
6.01.02 |
Variation on assets and liabilities |
-1,127,345 |
-889,663 |
6.01.02.01 |
Consumers, Concessionaires and Licensees |
-25,473 |
-96,188 |
6.01.02.02 |
Recoverable Taxes |
-1,111 |
5,588 |
6.01.02.03 |
Leases |
-3,726 |
0 |
6.01.02.04 |
Escrow deposits |
-137,348 |
-29,782 |
6.01.02.05 |
Other operating assets |
-65,698 |
-115,776 |
6.01.02.06 |
Suppliers |
143,539 |
123,546 |
6.01.02.07 |
Taxes and social contributions paid |
-550,050 |
-531,006 |
6.01.02.08 |
Other taxes and social contributions |
34,497 |
-44,798 |
6.01.02.09 |
Employee Pension Plans |
-50,964 |
-52,115 |
6.01.02.10 |
Interest paid on debt |
-549,373 |
-393,976 |
6.01.02.11 |
Regulator charges |
21,524 |
55,380 |
6.01.02.12 |
Other operating liabilities |
56,838 |
189,464 |
6.02 |
Net cash in investing activities |
-903,963 |
-1,212,750 |
6.02.02 |
Acquisition of property, plant and equipment |
-419,545 |
-447,636 |
6.02.03 |
Financial investments |
39,485 |
-17,361 |
6.02.04 |
Leases |
5,623 |
0 |
6.02.05 |
Acquisition of intangible assets |
-782,703 |
-776,342 |
6.02.08 |
Acquisition of Ownership |
0 |
-176 |
6.02.09 |
Increase Cash for Business Combinations |
253,177 |
0 |
6.02.10 |
Other |
0 |
28,765 |
6.03 |
Net cash in financing activities |
1,609,520 |
-828,663 |
6.03.01 |
Loans, financing and debentures obtained |
4,831,782 |
1,586,602 |
6.03.02 |
Payments of Loans, financing and debentures , net of derivatives |
-1,981,887 |
-975,167 |
6.03.03 |
Dividend and interest on shareholders’ equity paid |
-1,240,375 |
-1,440,098 |
6.05 |
Increase (decrease) in cash and cash equivalents |
2,711,722 |
-346,939 |
6.05.01 |
Cash and cash equivalents at beginning of period |
1,562,897 |
1,487,243 |
6.05.02 |
Cash and cash equivalents at end of period |
4,274,619 |
1,140,304 |
11
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CONSOLIDATED FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2011 TO SETEMBER 30, 2011
(in thousands of Brazilian reais – R$)
Code |
Description |
Capital |
Capital Reserves, options and treasury shares |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders´ Equity |
Noncontrolling Shareholders’ Equity |
Consolidated Shareholders’ Equity |
5.01 |
Opening balance |
4,793,424 |
16 |
904,705 |
0 |
795,563 |
6,493,708 |
255,948 |
6,749,656 |
5.03 |
Adjusted opening balance |
4,793,424 |
16 |
904,705 |
0 |
795,563 |
6,493,708 |
255,948 |
6,749,656 |
5.04 |
Capital transactions within shareholders |
0 |
0 |
-486,040 |
-744,744 |
0 |
-1,230,784 |
-7,093 |
-1,237,877 |
5.04.06 |
Dividend |
0 |
0 |
-486,040 |
-747,709 |
0 |
-1,233,749 |
-7,093 |
-1,240,842 |
5.04.08 |
Prescribed dividend |
0 |
0 |
0 |
2,965 |
0 |
2,965 |
0 |
2,965 |
5.05 |
Total comprehensive income |
0 |
0 |
0 |
1,142,258 |
328,674 |
1,470,932 |
1,114,563 |
2,585,495 |
5.05.01 |
Net income |
0 |
0 |
0 |
1,116,428 |
0 |
1,116,428 |
22,594 |
1,139,022 |
5.05.02 |
Other comprehensive income |
0 |
0 |
0 |
25,830 |
328,674 |
354,504 |
1,091,969 |
1,446,473 |
5.05.02.01 |
Adjustment of financial instruments |
0 |
0 |
0 |
102 |
41,368 |
41,470 |
0 |
41,470 |
5.05.02.02 |
Tax on Adjustment of financial instruments |
0 |
0 |
0 |
0 |
-14,100 |
-14,100 |
0 |
-14,100 |
5.05.02.03 |
Equity on Subsidiaries |
0 |
0 |
0 |
0 |
0 |
0 |
1,091,969 |
1,091,969 |
5.05.02.06 |
Business combinations CPFL Renováveis |
0 |
0 |
0 |
25,728 |
301,406 |
327,134 |
|
327,134 |
5.06 |
Internal changes of shareholders equity |
0 |
0 |
0 |
19,546 |
-19,546 |
0 |
0 |
0 |
5.06.02 |
Realization of revaluation reserve |
0 |
0 |
0 |
29,614 |
-29,614 |
0 |
0 |
0 |
5.06.03 |
Tax on Realization of revaluation reserve |
0 |
0 |
0 |
-10,068 |
10,068 |
0 |
0 |
0 |
5.07 |
Final balance |
4,793,424 |
16 |
418,665 |
417,060 |
1,104,691 |
6,733,856 |
1,363,418 |
8,097,274 |
CONSOLIDATED FINANCIAL STATEMENTS - STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FROM JANUARY 01, 2010 TO SETEMBER 30, 2010
(in thousands of Brazilian reais – R$)
Code |
Description |
Capital |
Capital Reserves, options and treasury shares |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders´ Equity |
Noncontrolling Shareholders’ Equity |
Consolidated Shareholders’ Equity |
5.01 |
Opening balance |
4,741,175 |
16 |
996,768 |
-234,278 |
765,667 |
6,269,348 |
267,431 |
6,536,779 |
5.03 |
Adjusted opening balance |
4,741,175 |
16 |
996,768 |
-234,278 |
765,667 |
6,269,348 |
267,431 |
6,536,779 |
5.04 |
Capital transactions within shareholders |
52,249 |
0 |
-655,017 |
-771,452 |
0 |
-1,374,220 |
-6,181 |
-1,380,401 |
5.04.01 |
Capital increase |
52,249 |
0 |
0 |
0 |
0 |
52,249 |
0 |
52,249 |
5.04.06 |
Dividend |
0 |
0 |
-655,017 |
-774,429 |
0 |
-1,429,446 |
-6,181 |
-1,435,627 |
5.04.08 |
Prescribed dividend |
0 |
0 |
0 |
2,977 |
0 |
2,977 |
0 |
2,977 |
5.05 |
Total comprehensive income |
0 |
0 |
0 |
1,182,324 |
39,264 |
1,221,588 |
13,776 |
1,235,364 |
5.05.01 |
Net income |
0 |
0 |
0 |
1,182,176 |
0 |
1,182,176 |
16,238 |
1,198,414 |
5.05.02 |
Other comprehensive income |
0 |
0 |
0 |
148 |
39,264 |
39,412 |
-2,462 |
36,950 |
5.05.02.01 |
Adjustment of financial instruments |
0 |
0 |
0 |
148 |
59,584 |
59,732 |
0 |
0 |
5.05.02.02 |
Tax on Adjustment of financial instruments |
0 |
0 |
0 |
0 |
-20,320 |
-20,320 |
0 |
0 |
5.05.02.03 |
Equity on Subsidiaries |
0 |
0 |
0 |
0 |
0 |
0 |
-2,462 |
36,950 |
5.06 |
Internal changes of shareholders equity |
0 |
0 |
0 |
19,581 |
-19,581 |
0 |
-19,980 |
-19,980 |
5.06.02 |
Realization of revaluation reserve |
0 |
0 |
0 |
19,581 |
-19,581 |
0 |
0 |
0 |
5.06.03 |
Tax on Realization of revaluation reserve |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.06.04 |
Other transactions within noncontrolling shareholders |
0 |
0 |
0 |
0 |
0 |
0 |
-19,980 |
-19,980 |
5.07 |
Final balance |
4,793,424 |
16 |
341,751 |
196,175 |
785,350 |
6,116,716 |
255,046 |
6,371,762 |
12
(Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CONSOLIDATED FINANCIAL STATEMENTS - STATEMENTS OF ADDED VALUE
(in thousands of Brazilian reais – R$)
Code |
Description |
YTD current period |
YTD previous period |
7.01 |
Revenues |
14,083,809 |
14,256,222 |
7.01.01 |
Sales of goods, products and services |
13,105,187 |
12,266,434 |
7.01.02 |
Other revenue |
778,153 |
696,554 |
7.01.02.01 |
Revenue from construction of infrastructure distribution |
778,153 |
698,867 |
7.01.02.02 |
Other |
0 |
-2,313 |
7.01.03 |
Revenues related to the construction of own assets |
252,409 |
1,330,644 |
7.01.04 |
Allowance for doubtful accounts |
-51,940 |
-37,410 |
7.02 |
Inputs |
-6,738,866 |
-7,611,590 |
7.02.01 |
Cost of sales |
-5,112,157 |
-5,100,620 |
7.02.02 |
Material-Energy-Outsourced services-Other |
-1,382,356 |
-2,264,718 |
7.02.04 |
Other |
-244,353 |
-246,252 |
7.03 |
Gross added value |
7,344,943 |
6,644,632 |
7.04 |
Retentions |
-613,091 |
-516,430 |
7.04.01 |
Depreciation and amortization |
-474,917 |
-377,190 |
7.04.02 |
Other |
-138,174 |
-139,240 |
7.04.02.01 |
Intangible concession asset - amortization |
-138,174 |
-139,240 |
7.05 |
Net added value generated |
6,731,852 |
6,128,202 |
7.06 |
Added value received in transfer |
480,884 |
351,676 |
7.06.02 |
Financial income |
480,884 |
351,676 |
7.07 |
Added Value to be Distributed |
7,212,736 |
6,479,878 |
7.08 |
Distribution of Added Value |
7,212,736 |
6,479,878 |
7.08.01 |
Personnel |
439,953 |
362,987 |
7.08.01.01 |
Direct Remuneration |
306,484 |
279,326 |
7.08.01.02 |
Benefits |
109,495 |
61,294 |
7.08.01.03 |
Government severance indemnity fund for employees- F.G.T.S. |
23,974 |
22,367 |
7.08.02 |
Taxes, Fees and Contributions |
4,608,850 |
4,286,145 |
7.08.02.01 |
Federal |
2,396,119 |
2,242,963 |
7.08.02.02 |
State |
2,204,050 |
2,035,895 |
7.08.02.03 |
Municipal |
8,681 |
7,287 |
7.08.03 |
Remuneration on third parties’ capital |
1,024,911 |
632,332 |
7.08.03.01 |
Interest |
1,005,029 |
620,716 |
7.08.03.02 |
Rental |
19,882 |
11,363 |
7.08.03.03 |
Other |
0 |
253 |
7.08.04 |
Remuneration on own capital |
1,139,022 |
1,198,414 |
7.08.04.02 |
Dividends |
747,709 |
774,429 |
7.08.04.03 |
Profit / loss for the period |
391,313 |
423,985 |
13
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Table of Contents
COMMENTS ON PERFORMANCE |
The comments on performance are expressed in thousands of Brazilian reais, unless otherwise indicated.
Analysis of Results
CPFL Energia (Parent Company)
Net income for this quarter was R$ 368,719, 7.1% (R$ 24,571) higher than in the same quarter of the previous year, mainly to results of equity in subsidiaries, as shown below:
|
3rd quarter 2011 |
|
3rd quarter 2010 | |
CPFL Paulista |
142,362 |
125,155 | ||
CPFL Piratininga |
57,463 |
61,067 | ||
RGE |
61,164 |
73,414 | ||
CPFL Santa Cruz |
8,564 |
3,320 | ||
CPFL Leste Paulista |
3,616 |
3,481 | ||
CPFL Jaguari |
3,840 |
2,588 | ||
CPFL Sul Paulista |
4,941 |
3,847 | ||
CPFL Mococa |
2,520 |
1,931 | ||
CPFL Geração |
79,448 |
51,729 | ||
CPFL Brasil |
28,602 |
49,953 | ||
CPFL Atende |
125 |
734 | ||
CPFL Planalto |
3,845 |
2,907 | ||
CPFL Serviços |
2,940 |
1,391 | ||
CPFL Jaguariuna |
(17) |
- | ||
CPFL Jaguari Geração |
2,472 |
2,353 | ||
Chumpitaz |
523 |
(250) | ||
Total |
|
402,406 |
383,620 |
14
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
COMMENTS ON CONSOLIDATED PERFORMANCE
Consolidated | ||||||||||||
3rd quarter |
Nine months | |||||||||||
2011 |
2010 |
Variation |
2011 |
2010 |
Variation | |||||||
OPERATING REVENUES |
|
4,858,087 |
4,494,484 |
8.1% |
13,883,340 |
12,965,301 |
7.1% | |||||
Electricity sales to final consumers (1) |
3,824,174 |
3,482,626 |
9.8% |
11,015,653 |
10,421,641 |
5.7% | ||||||
Electricity sales to wholesaler |
339,763 |
348,380 |
-2.5% |
914,567 |
845,887 |
8.1% | ||||||
Revenue from construction of concession infrastructure |
314,135 |
295,403 |
6.3% |
778,153 |
698,867 |
11.3% | ||||||
Other operating revenues (1) |
380,015 |
368,075 |
3.2% |
1,174,968 |
998,906 |
17.6% | ||||||
DEDUCTION FROM OPERATING REVENUE |
(1,565,864) |
(1,395,609) |
12.2% |
(4,523,475) |
(4,120,142) |
9.8% | ||||||
NET OPERATING REVENUE |
|
3,292,224 |
3,098,875 |
6.2% |
9,359,864 |
8,845,159 |
5.8% | |||||
ENERGY COST |
|
(1,635,616) |
(1,665,778) |
-1.8% |
(4,578,729) |
(4,582,560) |
-0.1% | |||||
Electricity purchased for resale |
(1,278,806) |
(1,379,348) |
-7.3% |
(3,609,063) |
(3,723,117) |
-3.1% | ||||||
Electricity network usage charges |
(356,810) |
(286,430) |
24.6% |
(969,665) |
(859,443) |
12.8% | ||||||
OPERATING COST/EXPENSE |
|
(874,137) |
(811,098) |
7.8% |
(2,507,619) |
(2,154,817) |
16.4% | |||||
Personnel |
(169,265) |
(147,737) |
14.6% |
(527,064) |
(441,095) |
19.5% | ||||||
Employee pension plan |
22,352 |
21,800 |
2.5% |
67,056 |
65,405 |
2.5% | ||||||
Material |
(27,864) |
(21,412) |
30.1% |
(69,400) |
(57,626) |
20.4% | ||||||
Outsourced Services |
(110,738) |
(111,254) |
-0.5% |
(367,760) |
(320,223) |
14.8% | ||||||
Depreciation and Amortization |
(149,902) |
(120,982) |
23.9% |
(446,017) |
(359,051) |
24.2% | ||||||
Merged Goodwill Amortization |
(46,148) |
(46,511) |
-0.8% |
(138,174) |
(139,240) |
-0.8% | ||||||
Costs related to infrastructure construction |
(314,135) |
(295,403) |
6.3% |
(778,153) |
(698,867) |
11.3% | ||||||
Other |
(78,438) |
(89,599) |
-12.5% |
(248,107) |
(204,120) |
21.5% | ||||||
INCOME FROM ELECTRIC UTILITY SERVICES |
|
782,471 |
621,999 |
25.8% |
2,273,517 |
2,107,782 |
7.9% | |||||
FINANCIAL INCOME (EXPENSE) |
|
(205,203) |
(73,100) |
180.7% |
(518,358) |
(239,231) |
116.7% | |||||
Income |
220,146 |
129,825 |
69.6% |
471,584 |
332,117 |
42.0% | ||||||
Expense |
(425,349) |
(202,925) |
109.6% |
(989,942) |
(571,348) |
73.3% | ||||||
INCOME BEFORE TAX |
|
577,268 |
548,899 |
5.2% |
1,755,159 |
1,868,551 |
-6.1% | |||||
Social Contribution |
(52,966) |
(52,641) |
0.6% |
(163,648) |
(178,316) |
-8.2% | ||||||
Income Tax |
(145,237) |
(145,477) |
-0.2% |
(452,488) |
(491,821) |
-8.0% | ||||||
NET INCOME FOR THE PERIOD |
|
379,064 |
350,781 |
8.1% |
1,139,022 |
1,198,414 |
-5.0% | |||||
|
|
|||||||||||
Net income attributable to the shareholders |
368,719 |
344,148 |
7.1% |
1,116,428 |
1,182,176 |
-5.6% | ||||||
Net income attributable to the non controlling interests |
10,346 |
6,633 |
56.0% |
22,594 |
16,238 |
39.1% | ||||||
EBITDA |
|
956,168 |
767,692 |
24.6% |
2,790,652 |
2,540,668 |
9.8% | |||||
Net Income for the Period and EBITDA Reconciliation (2) |
|
|||||||||||
NET INCOME FOR THE PERIOD |
|
379,064 |
350,781 |
1,139,022 |
1,198,414 |
|||||||
Employee Pension Plan |
(22,352) |
(21,800) |
(67,056) |
(65,405) |
||||||||
Depreciation and Amortization |
196,049 |
167,493 |
584,191 |
498,291 |
||||||||
Financial Income (Expense) |
205,203 |
73,100 |
518,358 |
239,231 |
||||||||
Social Contribution |
52,966 |
52,641 |
163,648 |
178,316 |
||||||||
Income Tax |
145,237 |
145,477 |
452,488 |
491,821 |
||||||||
EBITDA |
|
956,168 |
767,692 |
2,790,652 |
2,540,668 |
|||||||
(1) The reclassification of revenue from the Network Usage Charge - TUSD was not taken into account in presentation of the Comments on consolidated performance | ||||||||||||
(2) Information not reviewed by our auditors |
||||||||||||
Gross Operating Revenue
The Gross Operating Revenue in the 3rd quarter of 2011 was R$ 4,858,087, up 8.1% (R$ 363,603) on the same period of the previous year.
The main factors in this change were:
· An increase of 9.8% (R$ 341,548) in the billed and unbilled supply of electric energy, due to the increase of 8.1% in the average tariffs charged, mainly as a result of the tariff increases and an increase of 2.6% in the amount of energy sold;
· A decrease of 2.5% (R$ 8,617) in the energy supplied, caused mainly by the decrease of 32,1% in the average selling price charged, partially offset by the increase of 43.6% in the amount of energy sold.
15
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
· An increase of 3.2% (R$ 11,940) in Other Operating Revenue, due in particular to the increase of R$ 19,560 in income from the Tariff for the Use of the Distribution System – TUSD, mainly as a result of the migration of captive clients to the free market, and a decrease of R$ 7,620 in other income, largely due to the decrease in revenue from carbon credits recognized in 3Q10 by the subsidiary Ceran and a reduction in the provision of maintenance services
Ø Quantity of Energy Sold
There was an increase of 2.6% in the quantity of energy billed to final consumers in the 3rd quarter of 2011.
The residential, commercial and industrial categories, which account for 84.5% of the energy billed to end users in the quarter, recorded growth of 6.9% and 7.6% and a drop of 2.9%, respectively, compared with the same quarter of the previous year. The residential and commercial categories benefit from the accumulated effect of the expansion of total payroll and availability of credit in recent years, which resulted in increased purchases of household electrical goods and a dynamic retail trade. Although it benefitted, the residential category suffered the impacts of the drop in temperature in relation to the same period in the previous year. The amount sold to the industrial category decreased as a result of the migration of a number of customers to the free market, and was also influenced by the drop in industrial production.
There was an increase of 4.2% in the energy sold and transported in the concession area, which affects both the supply billed and collection of the TUSD, compared with the same period of the previous year.
Ø Tariffs
The energy supply tariffs charged increased by an average of 8.1% in the 3rd quarter of 2011, mainly due to the following tariff adjustments of the distributors subsidiaries:
Deductions from Operating Revenue
Deductions from Operating Income in the 3rd quarter of 2011 amounted to R$ 1,565,864, an increase of 12.2% (R$ 170,255) in relation to the same quarter of 2010, largely due to the increase of 11.1% (R$ 116,841) in ICMS, Pis and Cofins as a result of the supply billed and an increase of 14.9% (R$ 41,400) in CCC and CDE charges.
Cost of Electric Energy
The cost of electric energy in the quarter totaled R$ 1,635,616, a drop of 1.8% (R$ 30,162) in relation to the same period of the previous year.
16
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Ø Electric Energy purchased for Resale
The balance of electric energy purchased for resale was R$ 1,278,806, a drop of 7.3% (R$ 100,542), explained by the reduction of 2.3% in the amount of energy purchased and 5.1% in the tariff adjustment. The decrease in the amount is mainly due to the start-up of the Foz do Chápeco and Bioenergia projects.
Ø Tariff for the Use of the Distribution System
An increase of 24.6% (R$ 70,380) in the charges for use of the transmission and distribution system, mainly due to the System Service Charges (R$ 18,133) and Basic Network Charges (R$ 50,025), also as a result of production starting at Foz do Chápeco and Epasa.
Operating Costs and Expense
Eliminating the cost of construction of the concession infrastructure, Operating Costs and Expense in the quarter amounted to R$ 560,003, up 8.6% (R$ 44,308) on the previous quarter. This was mainly due to:
· An increase of 14.6% (R$ 21,528) in Personnel, mainly as a result of the consolidation of CPFL Renováveis (R$ 7,820), the effects of the 2011 Collective Agreement (R$ 6,800), the addition to the early retirement program (R$ 2,993), and the operational start-up of the Foz do Chapecó, Bioenergia and Epasa projects (R$ 1,669).
· An increase of 30.1% (R$ 6,452) in Material, basically due to the expense of maintaining the grid lines;
· An increase of 23.9% (R$ 28,920) in Depreciation and Amortization, mainly due to the start-up of Foz do Chapecó (R$ 16,687) and Epasa (R$ 3,954).
· A drop of 12.5% (R$ 11,161) in Other Expense, largely as a result of changes in legal and court expenses (R$ 14,942), due to the provision for a labor contingency in 2010 (R$ 18,552) of the subsidiary CPFL Paulista, and the decrease of R$ 2,406 in the collection rate, partially offset by the increase in the provision for doubtful accounts (R$ 6,967).
Financial Income (Expense)
The net Financial Income (Expense) in the quarter was an expense of R$ 205,203, compared with R$ 73,100 in the same period of 2010, an increase of 180.7% (R$ 132,103) in the expense.
Ø Increase of R$ 90,321 (69.6%) in financial income, mainly due to:
An increase in earnings on short-term financial investments (R$ 95,347) as a result of the higher amounts invested in the 3rd quarter of 2011.
Ø Increase of R$ 222,424 (109.6%) in financial expense, mainly due to:
· An increase of R$ 187,691 (86.8%) in interest debt charges and monetary and exchange restatement as a result of the variation in the debt indexes, particularly the CDI (15.1%),
17
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
higher indebtedness in the quarter, compared with the same quarter of the previous year and exchange rates on Itaipu´s invoices.
· Decrease of R$ 30,101 in Capitalized Interest, due to the operational start-up of Foz do Chapecó from October 2010, Epasa from December 2010 and Bioenergia from August 27, 2010.
Social Contribution and Income Tax
Taxes of R$ 198,203 on income in the 3rd quarter of 2011 were 0.04% (R$ 85) lower than in the same quarter of 2010, mainly as a result of the increase in pre-tax income, offset by the effect of the deductibility of the accelerated depreciation of the subsidiary Epasa.
Net income and EBITDA
As a result of the above factors, the net income for the quarter was R$ 379,064, or 8.1% (R$ 28,283) lower than in the same period of 2010.
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 3rd quarter of 2011 was R$ 956,168, or 24.6% (R$ 188,476) higher that the EBITDA for the same period of 2010.
18
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
COMMENTS ON THE PERFORMANCE OF THE SUBSIDIARIES/ASSOCIATES
Subsidiary/Associate: Companhia Paulista de Força e Luz - CPFL
The subsidiary Companhia Paulista de Força e Luz - CPFL is a publicly quoted corporation, and its individual comments on performance is provided in its Interim Financial Statements - ITR, at September 30, 2011, filed with the CVM – Comissão de Valores Mobiliários.
Subsidiary/Associate: CPFL Geração de Energia S.A.
The subsidiary CPFL Geração de Energia S/A is a publicly quoted corporation, and its individual and consolidated comments on performance are provided in its Interim Financial Statements – ITR, at September 30, 2011, filed with the CVM – Comissão de Valores Mobiliários.
Subsidiary/Associate: Companhia Piratininga de Força e Luz
The subsidiary Companhia Piratininga de Força e Luz is a publicly quoted corporation, and its individual comments on performance is provided in its Interim Financial Statements - ITR, at September 30, 2011, filed with the CVM – Comissão de Valores Mobiliários.
Subsidiary/Associate: Rio Grande Energia S.A.
The subsidiary Rio Grande Energia S/A is a publicly quoted corporation, and its individual and consolidated comments on performance are provided in its Interim Financial Statements – ITR, at September 30, 2011, filed with the CVM – Comissão de Valores Mobiliários.
19
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Subsidiary: CPFL COMERCIALIZAÇÃO BRASIL S.A.
Consolidated | ||||||||
2011 |
2010 | |||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||
NET OPERATING REVENUE |
442,405 |
1,181,816 |
483,494 |
1,232,352 | ||||
Cost of electric energy |
(372,535) |
(939,548) |
(391,420) |
(958,386) | ||||
Operating expenses |
(21,088) |
(65,453) |
(18,159) |
(46,282) | ||||
Personnel |
(5,325) |
(16,914) |
(4,092) |
(13,161) | ||||
Material |
(885) |
(2,141) |
(479) |
(1,073) | ||||
Outside Services |
(10,836) |
(30,979) |
(7,527) |
(21,117) | ||||
Depreciation and amortization |
(1,022) |
(3,103) |
(711) |
(1,983) | ||||
Other |
(3,019) |
(12,316) |
(5,350) |
(8,948) | ||||
INCOME FROM ELECTRIC ENERGY SERVICE |
48,783 |
176,815 |
73,915 |
227,684 | ||||
FINANCIAL INCOME (EXPENSE) |
(8,150) |
(13,252) |
537 |
1,631 | ||||
Income |
38,434 |
49,117 |
6,435 |
17,330 | ||||
Expense |
(46,585) |
(62,369) |
(5,898) |
(15,699) | ||||
Equity in subsidiaries |
2,107 |
2,107 |
- |
- | ||||
INCOME BEFORE TAXES |
42,740 |
165,671 |
74,452 |
229,315 | ||||
Social contribution |
(3,774) |
(14,780) |
(6,521) |
(20,068) | ||||
Income tax |
(10,364) |
(40,826) |
(17,978) |
(55,397) | ||||
NET INCOME |
28,602 |
110,066 |
49,953 |
153,850 | ||||
EBITDA |
49,805 |
179,918 |
74,953 |
229,668 |
Net Operation Revenue
Net Operating Revenue for this quarter of 2011 was R$ 442,405, a decrease of R$ 41,087 (8.5%) in relation to the same quarter of 2010. This decrease is basically explained by a decrease of of 520 GWh (R$58,206) partially offset by an increase of average tariffs of 4.3% (R$18,430).
Net Income and EBITDA
Net income of R$ 28,602 was recorded in this quarter of 2011, a decrease of R$ 21,351 (42.7%), compared with the same quarter of 2010.
EBITDA (net income before Financial Income (Expense), income tax and social contribution, depreciation and amortization) for this quarter of 2011 was R$ 49,805, 33.6% lower than the R$ 74,953 recorded in the same quarter of 2010 (information not reviewed by the Independent Auditors).
20
| |||||||
CPFL ENERGIA S.A. | |||||||
Balance Sheets as of September 30, 2011 and December 31, 2010 | |||||||
(in thousands of Brazilian Reais) | |||||||
Parent company |
Consolidated | ||||||
ASSETS |
September 30, 2011 |
December 31, 2010 |
September 30, 2011 |
December 31, 2010 | |||
CURRENT ASSETS |
|||||||
Cash and cash equivalents (note 5) |
561,373 |
110,958 |
4,274,619 |
1,562,897 | |||
Consumers, Concessionaires and Licensees (note 6) |
- |
- |
1,865,275 |
1,816,073 | |||
Dividends and Interest on Equity (note 12) |
125,913 |
412,648 |
- |
- | |||
Financial Investments (note 7) |
44,744 |
42,533 |
44,744 |
42,533 | |||
Recoverable Taxes (note 8) |
28,083 |
34,992 |
208,659 |
193,020 | |||
Derivatives (note 32) |
25 |
- |
256,791 |
244 | |||
Materials and Supplies |
- |
- |
42,816 |
24,856 | |||
Leases |
- |
- |
4,443 |
4,754 | |||
Other credits (note 11) |
2,434 |
505 |
444,535 |
253,812 | |||
TOTAL CURRENT ASSETS |
762,572 |
601,635 |
7,141,882 |
3,898,190 | |||
NONCURRENT ASSETS |
|||||||
Consumers, Concessionaires and Licensees (note 6) |
- |
- |
186,685 |
195,738 | |||
Due from Related Parties |
21,027 |
14,875 |
- |
- | |||
Escrow Deposits (note 21) |
11,431 |
10,676 |
1,079,399 |
890,685 | |||
Financial Investments (note 7) |
12,679 |
39,216 |
46,837 |
72,823 | |||
Recoverable Taxes (note 8) |
2,787 |
2,787 |
166,385 |
138,966 | |||
Derivatives (note 32) |
- |
- |
224 |
82 | |||
Deferred Tax Credits (note 9) |
171,157 |
177,729 |
1,096,980 |
1,183,460 | |||
Leases |
- |
- |
24,729 |
26,315 | |||
Financial asset of concession (note 10) |
- |
- |
1,233,886 |
934,646 | |||
Private pension fund (note 18) |
- |
- |
5,800 |
5,800 | |||
Investment at cost |
- |
- |
116,654 |
116,654 | |||
Other credits (note 11) |
17,305 |
27,514 |
217,932 |
222,100 | |||
Investments (note 12) |
6,271,333 |
6,167,072 |
- |
- | |||
Property, Plant and Equipment (note 13) |
133 |
158 |
6,982,472 |
5,786,465 | |||
Intangible assets (note 14) |
146 |
255 |
7,759,064 |
6,584,874 | |||
TOTAL NONCURRENT ASSETS |
6,507,998 |
6,440,282 |
18,917,048 |
16,158,607 | |||
TOTAL ASSETS |
7,270,570 |
7,041,917 |
26,058,930 |
20,056,797 | |||
21
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CPFL Energia S.A. | ||||||||
Balance Sheets as of September 30, 2011 and December 31, 2010 | ||||||||
(in thousands of Brazilian Reais) | ||||||||
|
Parent company |
|
Consolidated | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
September 30, 2011 |
|
December 31, 2010 |
|
September 30, 2011 |
|
December 31, 2010 |
|
|
|
|
|
|
|
| |
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Suppliers (note 15) |
1,320 |
|
1,768 |
|
1,197,365 |
|
1,047,385 | |
Accrued Interest on Debts (note 16) |
- |
|
- |
|
147,854 |
|
40,516 | |
Accrued Interest on Debentures (note 17) |
3,768 |
|
15,529 |
|
218,028 |
|
118,066 | |
Loans and Financing (note 16) |
- |
|
- |
|
1,356,407 |
|
578,867 | |
Debentures (note 17) |
150,000 |
|
- |
|
602,859 |
|
1,509,958 | |
Private pension fund (note 18) |
- |
|
- |
|
37,967 |
|
40,103 | |
Regulatory charges (note 19) |
- |
|
- |
|
145,065 |
|
123,541 | |
Taxes and Social Contributions Payable (note 20) |
603 |
|
437 |
|
488,434 |
|
455,248 | |
Dividends and Interest on Equity (note 24) |
17,745 |
|
16,360 |
|
21,603 |
|
23,813 | |
Accrued liabilities related to personnel |
11 |
|
204 |
|
121,574 |
|
58,688 | |
Derivatives (note 32) |
- |
|
123 |
|
- |
|
3,982 | |
Public Utilities (note 22) |
- |
|
- |
|
27,212 |
|
17,287 | |
Other accounts payable (note 23) |
15,966 |
|
6,824 |
|
513,208 |
|
410,869 | |
TOTAL CURRENT LIABILITIES |
|
189,413 |
|
41,246 |
|
4,877,576 |
|
4,428,323 |
|
|
|
|
|
|
|
| |
NONCURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accrued Interest on Debts (note 16) |
- |
|
- |
|
16,118 |
|
29,155 | |
Loans and Financing (note 16) |
- |
|
- |
|
6,603,497 |
|
4,917,843 | |
Debentures (note 17) |
300,000 |
|
450,000 |
|
4,441,440 |
|
2,212,314 | |
Private pension fund (note 18) |
- |
|
- |
|
454,993 |
|
570,877 | |
Taxes and Social Contributions Payable (note 20) |
- |
|
- |
|
625 |
|
960 | |
Deferred tax debits (note 9) |
- |
|
- |
|
651,892 |
|
277,767 | |
Reserve for contingencies (note 21) |
11,378 |
|
10,666 |
|
314,068 |
|
291,265 | |
Derivatives (note 32) |
43 |
|
460 |
|
43 |
|
7,883 | |
Public Utilities (note 22) |
- |
|
- |
|
437,301 |
|
429,632 | |
Other accounts payable (note 23) |
35,880 |
|
45,837 |
|
164,100 |
|
141,124 | |
TOTAL NONCURRENT LIABILITIES |
|
347,301 |
|
506,964 |
|
13,084,079 |
|
8,878,819 |
|
|
|
|
|
|
|
| |
SHAREHOLDERS' EQUITY (note 24) |
|
|
|
|
|
|
|
|
Capital |
4,793,424 |
|
4,793,424 |
|
4,793,424 |
|
4,793,424 | |
Capital Reserves |
16 |
|
16 |
|
16 |
|
16 | |
Profit Reserves |
418,665 |
|
418,665 |
|
418,665 |
|
418,665 | |
Additional dividend proposed |
- |
|
486,040 |
|
- |
|
486,040 | |
Revaluation Reserve |
1,104,691 |
|
795,563 |
|
1,104,691 |
|
795,563 | |
Accumulated profit |
417,060 |
|
- |
|
417,060 |
|
- | |
|
6,733,856 |
|
6,493,708 |
|
6,733,856 |
|
6,493,708 | |
Net equity attributable to noncontrolling shareholders |
- |
|
- |
|
1,363,418 |
|
255,948 | |
TOTAL SHAREHOLDERS' EQUITY |
|
6,733,856 |
|
6,493,708 |
|
8,097,274 |
|
6,749,656 |
|
|
|
|
|
|
|
| |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
7,270,570 |
|
7,041,917 |
|
26,058,930 |
|
20,056,797 |
|
|
|
|
|
|
|
|
22
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CPFL Energia S.A. | ||||||||||||||||
Statement of income for the period ended on September 30, 2011 and 2010 | ||||||||||||||||
(in thousands of Brazilian Reais, except for Earnings per share) | ||||||||||||||||
Parent company |
Consolidated | |||||||||||||||
2011 |
2010 |
2011 |
2010 | |||||||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||||||
NET OPERATING REVENUE (note 26) |
|
1 |
3 |
890 |
892 |
3,292,224 |
9,359,864 |
3,098,875 |
8,845,159 | |||||||
COST OF ELECTRIC ENERGY SERVICES |
|
|||||||||||||||
Cost of electric energy (note 27) |
- |
- |
- |
- |
(1,635,616) |
(4,578,729) |
(1,665,778) |
(4,582,560) | ||||||||
Operating cost |
- |
- |
- |
- |
(282,157) |
(865,526) |
(256,275) |
(751,597) | ||||||||
Services rendered to third parties |
- |
- |
- |
- |
(314,901) |
(779,529) |
(297,594) |
(703,494) | ||||||||
|
|
|
|
|
|
|
| |||||||||
GROSS OPERATING INCOME |
|
1 |
3 |
890 |
892 |
1,059,550 |
3,136,081 |
879,228 |
2,807,508 | |||||||
Operating expenses (note 28) |
|
|||||||||||||||
Sales expenses |
- |
- |
- |
- |
(84,513) |
(262,714) |
(67,573) |
(211,431) | ||||||||
General and administrative expenses |
(5,814) |
(21,954) |
(6,339) |
(17,361) |
(135,628) |
(431,722) |
(133,312) |
(323,520) | ||||||||
Other Operating Expense |
(36,297) |
(108,892) |
(36,255) |
(108,495) |
(56,939) |
(168,128) |
(56,344) |
(164,775) | ||||||||
|
|
|
|
|
|
|
| |||||||||
INCOME FROM ELECTRIC ENERGY SERVICE |
|
(42,110) |
(130,843) |
(41,704) |
(124,964) |
782,471 |
2,273,517 |
621,999 |
2,107,782 | |||||||
Equity in subsidiaries |
|
402,406 |
1,279,552 |
383,620 |
1,341,540 |
- |
- |
- |
- | |||||||
FINANCIAL INCOME (EXPENSE) (note 29) |
|
|||||||||||||||
Income |
23,730 |
30,754 |
21,072 |
43,550 |
220,146 |
471,584 |
129,825 |
332,117 | ||||||||
Expense |
(14,417) |
(41,198) |
(20,994) |
(56,015) |
(425,349) |
(989,942) |
(202,925) |
(571,348) | ||||||||
9,313 |
(10,444) |
78 |
(12,465) |
(205,203) |
(518,358) |
(73,100) |
(239,231) | |||||||||
INCOME BEFORE TAXES |
|
369,609 |
1,138,265 |
341,994 |
1,204,111 |
577,268 |
1,755,159 |
548,899 |
1,868,551 | |||||||
Social contribution (note 9) |
312 |
(4,221) |
1,157 |
(4,363) |
(52,966) |
(163,648) |
(52,641) |
(178,316) | ||||||||
Income tax (note 9) |
(1,203) |
(17,615) |
997 |
(17,572) |
(145,237) |
(452,488) |
(145,477) |
(491,821) | ||||||||
(891) |
(21,837) |
2,154 |
(21,935) |
(198,203) |
(616,136) |
(198,118) |
(670,137) | |||||||||
NET INCOME |
|
368,719 |
1,116,428 |
344,148 |
1,182,176 |
379,064 |
1,139,022 |
350,781 |
1,198,414 | |||||||
Net income attributable to controlling shareholders |
368,719 |
1,116,428 |
344,148 |
1,182,176 | ||||||||||||
Net income attributable to noncontrolling shareholders |
10,346 |
22,594 |
6,633 |
16,238 | ||||||||||||
|
|
|
| |||||||||||||
Net income per share |
|
1.16 |
1.23 |
23
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CPFL Energia S.A. | ||||||||||||||||||||||
Statement of changes in shareholders' equity for the period ended on September 30, 2011 and 2010 | ||||||||||||||||||||||
( thousands of Brazilian Reais ) | ||||||||||||||||||||||
Revaluation reserve |
|
| ||||||||||||||||||||
Capital |
Capital Reserve |
Legal |
Dividends |
Deemed cost |
Financial instruments |
Business combination - Reserve |
Retained earnings |
Total |
Noncontrolling shareholders'interest |
Total Shareholders' equity | ||||||||||||
Balance as of December 31, 2010 |
|
4,793,424 |
|
16 |
418,665 |
|
486,040 |
|
609,732 |
|
185,831 |
- |
|
- |
6,493,708 |
255,948 |
6,749,656 | |||||
Net income for the period |
- |
- |
- |
- |
- |
- |
- |
1,116,428 |
1,116,428 |
22,594 |
1,139,022 | |||||||||||
Approval of dividends proposed |
- |
- |
- |
(1,233,749) |
- |
- |
- |
- |
(1,233,749) |
(3,596) |
(1,237,345) | |||||||||||
Changes in Revaluation reserve: |
||||||||||||||||||||||
- Gain in financial instruments |
- |
- |
- |
- |
- |
41,470 |
- |
- |
41,470 |
- |
41,470 | |||||||||||
- Tax on financial instruments |
- |
- |
- |
- |
- |
(14,100) |
- |
- |
(14,100) |
- |
(14,100) | |||||||||||
- Realization of financial instruments |
- |
- |
- |
- |
- |
(102) |
- |
102 |
- |
- |
- | |||||||||||
- Realization of deemed cost of fixed assets |
- |
- |
- |
- |
(29,614) |
- |
- |
29,614 |
- |
- |
- | |||||||||||
- Tax on deemed cost realization |
- |
- |
- |
- |
10,068 |
- |
- |
(10,068) |
- |
- |
- | |||||||||||
-Business combination - CPFL Renováveis |
- |
- |
- |
- |
(25,728) |
- |
327,134 |
25,728 |
327,134 |
1,091,969 |
1,419,103 | |||||||||||
Destination of profit |
||||||||||||||||||||||
- Interim dividend |
- |
- |
- |
747,709 |
- |
- |
- |
(747,709) |
- |
(3,498) |
(3,498) | |||||||||||
Dividend prescribed |
- |
- |
- |
- |
- |
- |
- |
2,965 |
2,965 |
- |
2,965 | |||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Balance as of September 30, 2011 |
|
4,793,424 |
|
16 |
|
418,665 |
|
- |
|
564,458 |
|
213,099 |
327,134 |
|
417,060 |
6,733,856 |
1,363,418 |
8,097,274 |
Revaluation reserve |
||||||||||||||||||||
|
| |||||||||||||||||||
Capital |
Capital Reserve |
Legal reserve |
Dividends |
Deemed cost |
Financial instruments |
Retained losses |
Total |
Noncontrolling shareholders' interest |
Total Shareholders'equity | |||||||||||
Balance as of 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 |
- |
- |
- |
- |
- |
- |
1,182,176 |
1,182,175 |
16,238 |
1,198,414 | ||||||||||
Prescribed dividends |
- |
- |
- |
- |
- |
- |
2,977 |
2,977 |
- |
2,977 | ||||||||||
Approval of dividends proposed |
- |
- |
- |
(1,429,446) |
- |
- |
- |
(1,429,446) |
- |
(1,429,446) | ||||||||||
Changes in Revaluation reserve: |
||||||||||||||||||||
- Gain 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) |
- |
- |
- | ||||||||||
Destination of profit: |
||||||||||||||||||||
- Dividend |
- |
- |
- |
774,429 |
- |
- |
(774,429) |
- |
(6,181) |
(6,181) | ||||||||||
Other changes in noncontrolling shareholders |
- |
- |
- |
- |
- |
- |
- |
- |
(19,980) |
(19,980) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance as of September 30, 2010 |
|
4,793,424 |
16 |
341,751 |
- |
616,290 |
169,061 |
196,175 |
6,116,716 |
255,045 |
6,371,762 |
24
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
| ||||||||||||||||
CPFL Energia S.A. | ||||||||||||||||
Statement of Cash Flow | ||||||||||||||||
(thousands of Brazilian Reais) | ||||||||||||||||
|
Parent Company |
|
Consolidated | |||||||||||||
2011 |
2010 |
2011 |
2010 | |||||||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||||||
OPERATING CASH FLOW |
||||||||||||||||
Income for the period, before income tax and social contribution |
369,610 |
1,138,265 |
341,994 |
1,204,111 |
577,268 |
1,755,159 |
548,899 |
1,868,551 | ||||||||
ADJUSTMENT TO RECONCILE INCOME TO CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||||||||||
Depreciation and amortization |
36,341 |
109,025 |
36,294 |
108,600 |
196,049 |
584,191 |
167,493 |
498,291 | ||||||||
Reserve for contingencies |
- |
- |
5 |
5 |
(1,593) |
17,976 |
16,307 |
(143,233) | ||||||||
Interest and monetary restatement |
10,603 |
29,489 |
7,288 |
16,057 |
402,110 |
834,243 |
158,466 |
413,900 | ||||||||
Pension plan costs |
- |
- |
- |
- |
(22,352) |
(67,056) |
(21,800) |
(65,405) | ||||||||
Equity in subsidiaries |
(402,404) |
(1,279,550) |
(383,620) |
(1,341,540) |
- |
- |
- |
- | ||||||||
Losses on the write-off of noncurrent assets |
- |
- |
- |
- |
456 |
1,302 |
(1,998) |
1,946 | ||||||||
Deferred taxes (PIS and COFINS) |
- |
- |
- |
- |
(6,839) |
7,695 |
(5,936) |
5,407 | ||||||||
Other |
- |
- |
- |
- |
- |
- |
1,233 |
4,680 | ||||||||
REDUCTION (INCREASE) IN OPERATING ASSETS |
||||||||||||||||
Consumers, concessionaires and licensees |
- |
- |
- |
- |
(50,423) |
(25,473) |
(57,741) |
(96,188) | ||||||||
Dividend and interest on equity received |
710,595 |
1,692,403 |
754,785 |
1,254,799 |
- |
- |
- |
- | ||||||||
Recoverable taxes |
23,777 |
23,015 |
25,550 |
23,406 |
15,813 |
(1,111) |
32,757 |
5,588 | ||||||||
Lease |
- |
- |
- |
- |
(1,530) |
(3,726) |
- |
- | ||||||||
Escrow deposits |
(29) |
(42) |
(240) |
(633) |
(14,442) |
(137,348) |
(2,320) |
(29,782) | ||||||||
Other operating assets |
3,976 |
8,280 |
499 |
217 |
53,509 |
(65,698) |
(48,146) |
(115,776) | ||||||||
INCREASE (DECREASE) IN OPERATING LIABILITIES |
||||||||||||||||
Suppliers |
(1,852) |
(448) |
(80) |
(1,148) |
96,973 |
143,539 |
87,344 |
123,546 | ||||||||
Taxes and social contributions paid |
(15,453) |
(15,653) |
(18,790) |
(18,790) |
(223,109) |
(550,050) |
(189,519) |
(531,006) | ||||||||
Other taxes and social contributions |
(9,281) |
222 |
(9,887) |
(734) |
34,300 |
34,497 |
(10,009) |
(44,798) | ||||||||
Other liabilities with employee pension plans |
- |
- |
- |
- |
(15,479) |
(50,964) |
(14,818) |
(52,115) | ||||||||
Interest on debts - paid |
(27,533) |
(51,984) |
(22,756) |
(42,154) |
(185,906) |
(549,373) |
(150,809) |
(393,976) | ||||||||
Regulatory charges |
- |
- |
- |
- |
5,320 |
21,524 |
8,770 |
55,380 | ||||||||
Other operating liabilities |
3,606 |
(1,007) |
4,094 |
14,709 |
(30,267) |
56,838 |
19,889 |
189,464 | ||||||||
CASH FLOWS PROVIDED (USED) BY OPERATIONS |
701,956 |
1,652,015 |
735,136 |
1,216,905 |
829,858 |
2,006,165 |
538,062 |
1,694,474 | ||||||||
INVESTMENT ACTIVITIES |
||||||||||||||||
Capital increase in investments |
- |
- |
- |
- |
- |
- |
(59) |
(176) | ||||||||
Increase in property, plant and equipment |
- |
- |
- |
- |
253,177 |
253,177 |
- |
- | ||||||||
Financial investments |
- |
- |
- |
(169) |
(122,259) |
(419,545) |
(166,489) |
(447,636) | ||||||||
Lease |
11,693 |
34,615 |
11,264 |
32,503 |
14,905 |
39,485 |
(35,107) |
(17,361) | ||||||||
Additions to intangible assets |
- |
- |
- |
- |
2,014 |
5,623 |
- |
- | ||||||||
Sale of noncurrent assets |
(1) |
(1) |
- |
- |
(342,593) |
(782,703) |
(335,408) |
(776,342) | ||||||||
Advances for capital future increase |
- |
- |
(210) |
(305) |
- |
- |
- |
- | ||||||||
Intercompany loans with subsidiaries and associated companies |
11,657 |
(6,692) |
(41,727) |
(40,113) |
- |
- |
- |
- | ||||||||
Other |
- |
- |
(1) |
27 |
- |
- |
26,225 |
28,765 | ||||||||
|
|
|
|
|
||||||||||||
GENERATION (UTILIZATION) OF CASH IN INVESTMENTS |
23,349 |
27,922 |
(30,674) |
(8,057) |
(194,756) |
(903,963) |
(510,838) |
(1,212,750) | ||||||||
FINANCING ACTIVITIES |
||||||||||||||||
Loans, financing and debentures obtained |
- |
- |
- |
- |
1,420,990 |
4,831,782 |
786,499 |
1,586,602 | ||||||||
Payments of Loans, financing and debentures, net of derivatives |
(121) |
(121) |
- |
(198) |
(1,434,346) |
(1,981,887) |
(259,883) |
(975,167) | ||||||||
Dividend and interest on equity paid |
(746,755) |
(1,229,401) |
(771,253) |
(1,423,595) |
(750,075) |
(1,240,375) |
(790,985) |
(1,440,098) | ||||||||
|
|
|
|
|||||||||||||
(UTILIZATION) GENERATION OF CASH IN FINANCING |
(746,876) |
(1,229,522) |
(771,253) |
(1,423,793) |
(763,431) |
1,609,520 |
(264,369) |
(828,663) | ||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(21,571) |
450,415 |
(66,791) |
(214,945) |
(128,329) |
2,711,722 |
(237,145) |
(346,939) | ||||||||
OPENING BALANCE OF CASH AND CASH EQUIVALENTS |
582,944 |
110,958 |
70,972 |
219,126 |
4,402,948 |
1,562,897 |
1,377,449 |
1,487,243 | ||||||||
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS |
561,373 |
561,373 |
4,181 |
4,181 |
4,274,619 |
4,274,619 |
1,140,304 |
1,140,304 |
25
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
| |||||||||||||||
CPFL Energia S.A. | |||||||||||||||
(in thousands of Brazilian Reais) | |||||||||||||||
Parent company |
Consolidated | ||||||||||||||
2011 |
2010 |
2011 |
2010 | ||||||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||||||
1. Revenues |
1 |
3 |
980 |
982 |
4,915,075 |
14,083,809 |
4,931,248 |
14,256,222 | |||||||
1.1 Operating revenues |
1 |
3 |
980 |
982 |
4,543,952 |
13,105,187 |
4,199,081 |
12,266,434 | |||||||
1.2 Revenues related to the construction of own assets |
- |
- |
- |
- |
71,510 |
252,409 |
443,880 |
631,777 | |||||||
1.3 Revenue from infrastructure construction |
- |
- |
- |
- |
314,135 |
778,153 |
295,403 |
698,867 | |||||||
1.4 Allowance of doubtful accounts |
- |
- |
- |
- |
(14,522) |
(51,940) |
(7,330) |
(37,410) | |||||||
1.5 Provision for losses on the realization of regulatory assets |
- |
- |
- |
- |
- |
- |
214 |
(2,313) | |||||||
2. (-) Inputs |
(3,579) |
(17,611) |
(5,279) |
(14,340) |
(2,406,197) |
(6,738,866) |
(2,786,627) |
(7,611,590) | |||||||
2.1 Electricity Purchased for Resale |
- |
- |
- |
- |
(1,823,465) |
(5,112,157) |
(1,840,003) |
(5,100,620) | |||||||
2.2 Material |
(15) |
(46) |
(7) |
(46) |
(228,539) |
(604,434) |
(221,283) |
(760,103) | |||||||
2.3 Outsourced Services |
(2,567) |
(13,970) |
(4,314) |
(10,894) |
(266,985) |
(777,922) |
(611,879) |
(1,504,615) | |||||||
2.4 Other |
(998) |
(3,595) |
(958) |
(3,400) |
(87,208) |
(244,353) |
(113,462) |
(246,252) | |||||||
3. Gross added value (1 + 2) |
(3,579) |
(17,608) |
(4,299) |
(13,358) |
2,508,878 |
7,344,943 |
2,144,621 |
6,644,632 | |||||||
4. Retentions |
(36,342) |
(109,025) |
(36,294) |
(108,600) |
(208,617) |
(613,091) |
(173,462) |
(516,430) | |||||||
4.1 Depreciation and amortization |
(45) |
(134) |
(39) |
(105) |
(162,470) |
(474,917) |
(126,951) |
(377,190) | |||||||
4.2 Amortization of intangible assets |
(36,297) |
(108,892) |
(36,255) |
(108,495) |
(46,148) |
(138,174) |
(46,511) |
(139,240) | |||||||
5. Net added value generated (3 + 4) |
(39,920) |
(126,633) |
(40,593) |
(121,958) |
2,300,261 |
6,731,852 |
1,971,159 |
6,128,202 | |||||||
6. Added value received in transfer |
426,136 |
1,319,700 |
404,692 |
1,394,207 |
220,503 |
480,884 |
136,900 |
351,676 | |||||||
6.1 Financial Income |
23,730 |
40,148 |
21,072 |
52,667 |
220,503 |
480,884 |
136,900 |
351,676 | |||||||
6.2 Equity in Subsidiaries |
402,406 |
1,279,552 |
383,620 |
1,341,540 |
- |
- |
- |
- | |||||||
7. Added value to be distributed (5 + 6) |
386,216 |
1,193,066 |
364,099 |
1,272,249 |
2,520,764 |
7,212,736 |
2,108,059 |
6,479,878 | |||||||
8. Distribution of added value |
386,216 |
1,193,066 |
364,099 |
1,272,249 |
2,520,764 |
7,212,736 |
2,108,059 |
6,479,878 | |||||||
8.1 Personnel and Charges |
1,915 |
3,453 |
870 |
2,436 |
140,456 |
439,953 |
124,585 |
362,987 | |||||||
8.1.1 Direct Remuneration |
1,304 |
2,842 |
804 |
2,257 |
106,006 |
306,484 |
93,993 |
279,326 | |||||||
8.1.2 Benefits |
549 |
432 |
44 |
96 |
26,443 |
109,495 |
22,875 |
61,294 | |||||||
8.1.3 Government severance indemnity fund for employees - F.G.T.S. |
62 |
178 |
22 |
83 |
8,007 |
23,974 |
7,717 |
22,367 | |||||||
8.2 Taxes, Fees and Contributions |
1,138 |
31,924 |
(1,916) |
31,578 |
1,569,251 |
4,608,850 |
1,417,589 |
4,286,145 | |||||||
8.2.1 Federal |
1,138 |
31,920 |
(1,926) |
31,562 |
804,620 |
2,396,119 |
732,479 |
2,242,963 | |||||||
8.2.2 State |
- |
4 |
- |
- |
762,897 |
2,204,050 |
683,942 |
2,035,895 | |||||||
8.2.3 Municipal |
- |
- |
10 |
16 |
1,579 |
8,681 |
1,168 |
7,287 | |||||||
8.3 Interest and Rentals |
14,444 |
41,262 |
20,997 |
56,059 |
431,993 |
1,024,911 |
215,104 |
632,332 | |||||||
8.3.1 Interest |
14,415 |
41,188 |
20,981 |
55,996 |
425,294 |
1,005,029 |
210,361 |
620,716 | |||||||
8.3.2 Rental |
29 |
74 |
16 |
63 |
6,699 |
19,882 |
4,490 |
11,363 | |||||||
8.3.2 Other |
- |
- |
- |
- |
- |
- |
253 |
253 | |||||||
8.4 Interest on capital |
368,719 |
1,116,428 |
344,148 |
1,182,176 |
379,064 |
1,139,022 |
350,781 |
1,198,414 | |||||||
8.4.1 Dividends (including proposed additional) |
- |
747,709 |
- |
774,429 |
- |
- |
- |
- | |||||||
8.4.2 Retained Earnings |
368,719 |
368,719 |
344,148 |
407,747 |
- |
747,709 |
- |
774,429 | |||||||
379,064 |
391,313 |
350,781 |
423,985 |
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
CPFL ENERGIA S.A.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AT SEPTEMBER 30, 2011
(Amounts expressed in thousands of reais, unless otherwise indicated)
( 1 ) OPERATIONS
CPFL Energia S.A. (“CPFL Energia” or “Company”) is a publicly quoted corporation incorporated for the principal purpose of acting as a holding company, participating in the capital of other companies primarily dedicated to electric energy distribution, generation and commercialization activities.
The Company’s headquarters are located at Rua Gomes de Carvalho, 1510 - 14º floor - Cj 2 - Vila Olímpia - São Paulo - SP - Brazil.
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 |
Approximate number of consumers |
Concession term |
End of the concession | |||||||
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Publicly-quoted corporation |
Direct |
Interior of S. Paulo |
234 |
3,704 |
30 years |
November 2027 | |||||||
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-quoted corporation |
Direct |
Interior of S. Paulo |
27 |
1,458 |
30 years |
October 2028 | |||||||
Rio Grande Energia S.A. ("RGE") |
Publicly-quoted corporation |
Direct |
Interior of Rio Grande do Sul |
262 |
1,293 |
30 years |
November 2027 | |||||||
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Private corporation |
Direct |
Interior of São Paulo and Paraná |
27 |
183 |
16 years |
July 2015 | |||||||
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Private corporation |
Direct |
Interior of S. Paulo |
7 |
52 |
16 years |
July 2015 | |||||||
Companhia Jaguari de Energia ("CPFL Jaguari") |
Private corporation |
Direct |
Interior of S. Paulo |
2 |
33 |
16 years |
July 2015 | |||||||
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Private corporation |
Direct |
Interior of S. Paulo |
5 |
73 |
16 years |
July 2015 | |||||||
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Private corporation |
Direct |
Interior of São Paulo and Minas Gerais |
4 |
41 |
16 years |
July 2015 |
Installed power | ||||||||||||
Energy generation |
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, 2 SHPs and 1 Thermal* |
695 MW |
695 MW | ||||||
Foz do Chapecó Energia S.A. |
Private corporation |
Indirect |
Santa Catarina and |
1 Hydroelectric |
855 MW |
436 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 Energias Renováveis S.A. |
Publicly-quoted corporation |
Indireta |
(***) |
(***) |
(***) |
(***) | ||||||
(*) SHP - Small Hydropower Plant |
||||||||||||
(**) Paulista Lajeado has a 7% participation in the installed power of Investco S.A. |
||||||||||||
(***) Details of the restructuring activities and CPFL Renováveis are described in note 1,1 |
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Commercialization of Energy 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 | |||
Chumpitaz Serviços S.A. ("Chumpitaz") |
Private corporation |
Provision of administrative services |
Direct | |||
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Limited company |
Provision of telephone answering 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 |
1.1 Corporate restructuring CPFL Energia Renováveis S.A. (CPFL Renováveis)
On April 19, 2011, the Company signed an agreement with the shareholders of ERSA Energias Renováveis S.A. (Ersa) to merge assets and projects relating to renewable energy sources held in its subsidiaries (in the case of CPFL, the assets of the subsidiaries CPFL Geração and CPFL Brasil) including wind farms, biomass and small hydroelectric power plants. After a series of planned restructurings, CPFL Geração and CPFL Brasil have joined the shareholders of ERSA, as majority shareholders, resulting in the creation of CPFL Energias Renováveis S.A.
The objective of the association was to consolidate the experience of both groups in the renewable energy sector, thereby obtaining synergies by combining their operations and an improved structure for developing their business.
On June 21, 2011, in Resolution 2967/2011, published in the Official Gazette of the Federal Executive – DOU, on July 04, 2011, ANEEL authorized the restructuring which involved the following stages for the CPFL Group companies involved in the project:
Stage 1: Transfer of CPFL Geração`s small hydroelectric power plants - SHPs to the following SPCs (Special Purpose Companies) controlled by CPFL Geração: MOHINI Empreendimentos e Participações Ltda. – “Mohini”; JAYADITYA Empreendimentos e Participações Ltda – “Jayaditya”; and CHIMAY Empreendimentos e Participações Ltda. – “Chimay”;
Stage 2: Increase of the capital of Smita Empreendimentos e Participações S.A. (SMITA) through the contribution by CPFL Geração and CPFL Brasil of their interests in renewable energy SPCs, including the Mohini, Jayaditya and Chimay SPCs, which received the CPFL Geração`s small hydroelectric power plants at stage 1; and
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Stage 3: Merger of SMITA by ERSA, whereby CPFL Geração and CPFL Brasil became shareholders in that company, which took the name of CPFL Energias Renováveis S.A.
The subsidiaries CPFL Geração, CPFL Brasil and SMITA approved stages 1 and 2 on July 18, 2011. Stage 3 was approved on 24 August and CPFL Renováveis has been fully consolidated in CPFL Energia´s financial statements since August 1, 2011.
As a result of the approval of stage 3, CPFL Energia now indirectly holds 54.50% of CPFL Renováveis, through its subsidiaries CPFL Geração (43.65%) and CPFL Brasil (10.85%). See further accounting details in note 12.4.
CPFL Renováveis is an independent producer of energy, focused exclusively on the Brazilian generation of electric energy from renewable sources market, through the development, construction and operation of small (up to 30 MW) and medium (up to 200 MW) plants, such as small hydropower plants (SHPs), wind and biomass plants. CPFL Renováveis is comprised of:
· 17 subsidiaries, with the main objective of generation of electric energy by hydropower plants, consisting of 36 small hydropower plants, of which: (i) 34 are operational, with total installed power of 307 MW, located in the states of São Paulo, Santa Catarina and Minas Gerais, and (ii) 2 are under development, with planned installed power of 38 MW, scheduled to start operating in 2013 and 2014;
· 19 subsidiaries with the main objective of generating electric energy from wind sources, of which (i) 4 are operational, with total installed power of 210MW, located in the state of Ceará, and (ii) 15 are under development, with planned installed power of 889 MW, scheduled to start operating between 2012 and 2015;
· Nine subsidiaries with the main objective of generating electric energy from biomass, of which (i) 4 are operational, with total installed power of 160 MW, located in the states of São Paulo and Rio Grande do Norte and (ii) 5 are under development, with planned installed power of 240 MW, scheduled to start operating between 2012 and 2014.
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS
2.1 Basis of preparation
The individual (Parent Company) and consolidated quarterly financial statements were prepared 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 are presented in accordance with CPC21 Interim Financial Reporting.
The Company also follows the guidelines of the Public Electric Energy Accounting Manual and the standards laid down by the National Electric Energy Agency (Agência Nacional de Energia Elétrica – ANEEL), when these do not conflict with generally accepted accounting practices in Brazil and/or international accounting practices.
The individual financial statements are in conformity with the International Financial Reporting Standards – IFRS issued by the International Accounting Standards Board – IASB, except for measurement of investments in subsidiaries and jointly controlled entities, which are accounted for using the equity method, whereas under IFRS they should be recognized by the cost or fair value method.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
The consolidated financial statements were prepared and are presented in full conformity with the IFRS standards and are presented in accordance with IAS 34 Interim Financial Reporting.
The accounting practices adopted in preparing these Interim Financial Statements are consistent with those adopted in December 31, 2010, and should be read together with those statements.
2.2 Basis of measurement
The financial quarterly 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 measured at fair value through profit or loss, iii) available-for-sale financial assets 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
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 estimates 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 9 – Deferred tax credits and debits;
· Note 10 – Financial asset of concession;
· Note 14 – Intangible assets;
· Note 18 – Private Pension Fund;
· Note 21 – Reserve for contingencies and scrow deposits, and
· Note 32 – Financial instruments and Operating Risks.
2.4 Functional currency and presentation currency
The individual and consolidated quarterly financial statements are presented in thousands of Brazilian reais, which is the Company's functional currency. Certain figures have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not tally due to rounding.
2.5 Basis of consolidation
(i) Business combinations
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.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
(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, 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 in each period presented.
(iii) Acquisition of non-controlling interest
Accounted for as transactions between equity holders and therefore no goodwill is recognized as a result of such transactions.
2.6 Segment information
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 in deciding on allocation of resources and to assess the segment's performance, and (iii) for which 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 the segments, 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.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
As of September 30, 2011, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries CERAN, Paulista Lajeado and in CPFL Renováveis.
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, and these are presented as an integral part of the quarterly financial statements.
( 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 rolled forward 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.
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 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, which 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.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
3.2 Financial instruments
- Financial assets:
Financial assets are recognized initially on the date that they are originated or on the 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: 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 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 5), (ii) financial investments (Note 7) and (iii) derivatives (Note 32).
ii. Held-to-maturity: 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 classifies the security receivable from CESP (Note 7) in this category.
iii. Loans and receivables: 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 6), and (ii) other credits (Note 11).
iv. Available-for-sale: these are non-derivative financial assets designated as available-for-sale or 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 equity valuation 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 the fact that it does not classify in the categories described above. Since Management believes that the compensation will be 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 party to the contractual provisions of the instrument. The Company and its subsidiaries have the following main financial liabilities:
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i. Measured at fair value through profit or loss: 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 against 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 32).
ii. Not measured at fair value through profit or loss: 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 15), (ii) loans and financing (note 16), (iii) debt charges (Note 16); (iv) debenture charges (Note 17); (v) debentures (Note 17); (vi) public utilities (Note 22); and (vii) other accounts payable (note 23).
The Company accounts for warranties when 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 risk assumed of non-payment of the debt, which is amortized against financial income simultaneously and in proportion with amortization of the debt and (ii) an asset equivalent to the right to compensation by the guaranteed party or a expense prepaid under the warranties, which is amortized by receipt of cash from other shareholders or on a straight-line basis against financial expense over the warranty period.
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 issuance of shares 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 start of an agreement whether the 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 start 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.
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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, in our subsidiaries CPFL Geração and CPFL Sul Centrais.
- 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 (subsidiary CERAN and joint-controlled subsidiaries ENERCAN, BAESA and Foz do Chapecó), 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 the 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.
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3.5 Intangible assets:
Includes rights related to non-physical assets such as goodwill, concession exploration rights, software and rights-of-way.
Goodwill resulting 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 are tested annually for impairment.
Negative goodwill is 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 an intangible asset in the consolidated financial statements.
Intangible assets corresponding to the right to exploit 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 correspond 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 collect from users 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.
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-up date, 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 asset and a 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.
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In assessing collective impairment the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted in accordance with 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 a decrease in the impairment loss, the decrease in impairment is reversed through profit or loss.
· Available-for-sale: as the difference between the acquisition cost, net of any repayment and amortization of the principal, and the current fair value, less any impairment loss previously recognized in profit or loss. Losses are recognized in profit and loss.
If an increase (gain) is identified in periods subsequent to recognition of the loss, then the impairment loss is reversed against 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.
- 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.
In 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
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Certain subsidiaries have post-employment benefits and pension plans, recognized by the accrual method in accordance with CPC 33 Employee benefits, and are regarded as sponsors of these plans. Although the plans have particularities, they have the following characteristics:
i. Defined contribution plan: a post-employment benefit plan under which the sponsor 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.
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. 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 are only recognized as a liability in the Company's financial statement after the date of the Board's decision.
In accordance with the new accounting practice, Interest on shareholders’ equity is no longer shown in the statement of income 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.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
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 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.
Current tax is the expected tax payable or receivable/to be offset on the taxable income or loss. 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, annually approved by the Board 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 this 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 and IAS 33.
3.13 Regulatory assets and liabilities
In accordance with the preliminary interpretation of IASB/CPC, regulatory assets and liabilities cannot be recognized in our distribution subsidiaries' 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 VALUE
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.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
- 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.
- 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 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 indices.
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 ) CASH AND CASH EQUIVALENTS
Parent company |
Consolidated | |||||||
September 30, 2011 |
December 31, 2010 |
Sptember 30, 2011 |
December 31, 2010 | |||||
Bank deposits |
5,851 |
4,700 |
52,670 |
361,749 | ||||
Short-term financial investments |
555,522 |
106,258 |
4,221,949 |
1,201,148 | ||||
Total |
|
561,373 |
110,958 |
4,274,619 |
1,562,897 |
Short-term financial investments are short-term transactions with institutions operating in the Brazilian financial market, with daily liquidity, low credit risk and average interest of 100% of the Interbank deposit rate (CDI).
( 6 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES
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In the consolidated financial statements, the balance derives mainly from the supply of electric energy. The following table shows the breakdown at September 30, 2011 and December 31, 2010:
Consolidated | |||||||||
|
Past due |
Total | |||||||
Amounts coming due |
until 90 days |
90 days |
September 30, 2011 |
December 31, 2010 | |||||
Current |
|||||||||
Consumer classes |
|||||||||
Residential |
338,694 |
220,323 |
24,788 |
583,817 |
502,539 | ||||
Industrial |
156,386 |
49,505 |
42,236 |
248,127 |
232,943 | ||||
Commercial |
125,971 |
42,557 |
14,878 |
183,406 |
169,955 | ||||
Rural |
37,099 |
6,434 |
1,572 |
45,105 |
39,094 | ||||
Public administration |
30,198 |
6,014 |
869 |
37,081 |
32,614 | ||||
Public lighting |
28,731 |
3,056 |
13,314 |
45,101 |
41,749 | ||||
Public utilities |
38,014 |
7,848 |
938 |
46,800 |
40,055 | ||||
Billed |
755,093 |
335,737 |
98,595 |
1,189,437 |
1,058,949 | ||||
Unbilled |
434,284 |
- |
- |
434,284 |
465,077 | ||||
Financing of Consumers' Debts |
79,223 |
8,518 |
32,464 |
120,205 |
112,141 | ||||
Free energy |
3,853 |
- |
- |
3,853 |
3,727 | ||||
CCEE transactions |
12,609 |
- |
- |
12,609 |
23,932 | ||||
Concessionaires and Licensees |
188,216 |
- |
- |
188,216 |
193,852 | ||||
Provision for doubtful accounts |
- |
- |
(93,358) |
(93,358) |
(80,692) | ||||
Other |
10,040 |
- |
- |
10,028 |
39,086 | ||||
Total |
1,483,318 |
344,255 |
37,701 |
1,865,275 |
1,816,073 | ||||
Non current |
|||||||||
Financing of Consumers' Debts |
145,384 |
- |
- |
145,384 |
154,436 | ||||
CCEE transactions |
41,301 |
- |
- |
41,301 |
41,301 | ||||
Total |
186,685 |
- |
- |
186,685 |
195,738 |
Allowance for doubtful accounts
Changes in the allowance for doubtful accounts are as follows:
Consolidated | ||
As of December 31, 2010 |
|
(80,692) |
Provision recognized |
(78,199) | |
Recovery of revenue |
26,258 | |
Write-off of accounts receivable provisioned |
39,274 | |
As of September 30, 2011 |
|
(93,358) |
( 7 ) 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 eight years. The amounts paid to CESP by the Company will be settled by CPFL Brasil using the funds derived from the acquisition of energy produced by that company.
As of September 30, 2011, the current assets balance of the parent company is R$ 44,744 (R$ 42,533 as of December 31, 2010), and the noncurrent assets balance is R$ 12,679 (R$ 39,216 as of December 31, 2010). The operation is subject to interest of 17,5% p.a., plus the annual variation of the IGP-M, and is amortized in monthly installments of amounts corresponding to the purchase of energy.
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( 8 ) RECOVERABLE TAXES
Parent company |
Consolidated | |||||||
September 30, 2011 |
December 31, 2010 |
September 30, 2011 |
December 31, 2010 | |||||
Current |
|
|||||||
Prepayments of social contribution - CSLL |
167 |
379 |
3,138 |
1,425 | ||||
Prepayments of income tax - IRPJ |
438 |
872 |
5,961 |
2,791 | ||||
IRRF on interest on equity |
15,657 |
30,039 |
15,964 |
30,347 | ||||
Income tax and social contribution to be offset |
9,787 |
761 |
24,028 |
11,449 | ||||
Withholding tax - IRRF |
1,964 |
2,870 |
56,812 |
40,804 | ||||
ICMS to be offset |
- |
- |
71,898 |
72,999 | ||||
Social Integration Program - PIS |
- |
- |
5,738 |
3,801 | ||||
Contribution for Social Security financing- COFINS |
42 |
42 |
21,887 |
13,437 | ||||
National Social Security Institute - INSS |
1 |
1 |
2,229 |
2,230 | ||||
Other |
26 |
26 |
1,004 |
13,736 | ||||
Total |
|
28,083 |
34,992 |
208,659 |
193,020 | |||
Noncurrent |
|
|||||||
Social contribution to be offset - CSLL |
- |
- |
35,399 |
32,390 | ||||
Income tax to be offset - IRPJ |
- |
- |
1,001 |
1,001 | ||||
ICMS to be offset |
- |
- |
108,205 |
101,380 | ||||
Social Integration Program - PIS |
2,787 |
2,787 |
5,979 |
2,855 | ||||
Contribution for Social Security financing- COFINS |
- |
- |
14,389 |
- | ||||
National Social Security Institute - INSS |
- |
- |
1,339 |
- | ||||
Other |
- |
- |
74 |
1,340 | ||||
Total |
|
2,787 |
2,787 |
166,385 |
138,966 |
( 9 ) DEFERRED TAXES
9.1- Composition of the tax credits:
Parent company |
Consolidated | |||||||
September 30, 2011 |
December 31, 2010 |
September 30, 2011 |
December 31, 2010 | |||||
Social contribution credit/(debit) |
|
|||||||
Tax loss carryforwards |
41,353 |
42,715 |
45,828 |
51,806 | ||||
Tax benefit of merged goodwill |
- |
- |
158,721 |
172,256 | ||||
Temporarily non-deductible differences |
783 |
724 |
(114,874) |
(12,416) | ||||
Subtotal |
|
42,136 |
43,440 |
89,675 |
211,646 | |||
Income tax credit / (debit) |
|
|||||||
Tax losses |
124,540 |
129,690 |
136,569 |
143,866 | ||||
Tax benefit of merged goodwill |
- |
- |
539,447 |
583,724 | ||||
Temporarily non-deductible differences |
4,481 |
4,599 |
(312,986) |
(33,620) | ||||
Subtotal |
|
129,021 |
134,289 |
363,031 |
693,969 | |||
PIS and COFINS credit/(debit) |
|
|||||||
Temporary non-deductible differences |
- |
- |
(7,617) |
78 | ||||
Total |
|
171,157 |
177,729 |
445,088 |
905,693 | |||
Total tax credit |
171,157 |
177,729 |
1,096,980 |
1,183,460 | ||||
Total tax debit |
- |
- |
(651,892) |
(277,767) |
9.2 - Tax Benefit on Merged Goodwill:
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 and ICPC 09 - Stand-alone Financial Statements, Consolidated and Separate Financial Statements and Equity Method application. 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.
42
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | ||||||||
September 30, 2011 |
December 31, 2010 | |||||||
CSLL |
IRPJ |
CSLL |
IRPJ | |||||
CPFL Paulista |
87,927 |
244,243 |
94,584 |
262,734 | ||||
CPFL Piratininga |
19,872 |
68,189 |
21,274 |
73,002 | ||||
RGE |
38,565 |
159,264 |
41,117 |
169,805 | ||||
CPFL Santa Cruz |
3,835 |
12,059 |
4,705 |
14,794 | ||||
CPFL Leste Paulista |
2,173 |
6,613 |
2,622 |
7,986 | ||||
CPFL Sul Paulista |
3,150 |
9,827 |
3,767 |
11,758 | ||||
CPFL Jaguari |
1,885 |
5,718 |
2,305 |
7,002 | ||||
CPFL Mococa |
1,205 |
3,744 |
1,456 |
4,527 | ||||
CPFL Geração |
- |
28,844 |
- |
30,877 | ||||
CPFL Serviços |
109 |
947 |
425 |
1,239 | ||||
Total |
|
158,721 |
539,447 |
172,256 |
583,724 |
9.3 – Accumulated balances on temporary nondeductible differences:
Consolidated | |||||||||||
September 30, 2011 |
December 31, 2010 | ||||||||||
CSLL |
IRPJ |
PIS/COFINS |
CSLL |
IRPJ |
PIS/COFINS | ||||||
Temporary non-deductible differences: |
|||||||||||
Reserve for contingencies |
19,254 |
53,966 |
- |
18,908 |
52,809 |
- | |||||
Private pension fund |
2,426 |
7,734 |
- |
3,051 |
9,473 |
- | |||||
Allowance for doubtful accounts |
7,883 |
21,935 |
- |
6,895 |
19,155 |
- | |||||
Free energy provision |
4,206 |
11,686 |
- |
3,730 |
10,362 |
- | |||||
Research and Development and Energy Efficiency Programs |
13,361 |
37,115 |
- |
14,611 |
40,579 |
- | |||||
Reserves related to personnel |
3,842 |
10,663 |
- |
2,338 |
7,160 |
- | |||||
Depreciation rate difference - Revaluation |
8,553 |
23,758 |
- |
9,305 |
25,846 |
- | |||||
Financial instruments (IFRS / CPC) |
454 |
1,261 |
- |
448 |
1,245 |
- | |||||
Recognition of the concession - adjustment of intangible assets (IFRS / CPC) |
(2,317) |
(6,435) |
- |
(2,475) |
(6,878) |
- | |||||
Reversal of regulatory assets and liabilities (IFRS / CPC) |
(9,589) |
(26,632) |
(10,845) |
(1,077) |
(3,030) |
(1,399) | |||||
Actuarial losses on the transition of accounting practices (IFRS/CPC) |
26,410 |
73,504 |
- |
26,718 |
74,215 |
- | |||||
Other adjustments changes in practices |
12,800 |
35,483 |
- |
9,673 |
26,868 |
- | |||||
Business Combination CPFL Renováveis (note 12,4) |
(100,219) |
(278,387) |
- |
- |
- |
- | |||||
Other |
7,728 |
25,475 |
3,227 |
3,941 |
9,903 |
1,477 | |||||
Temporarily non-deductible differences - comprehensive income: |
|||||||||||
Recognition of the concession - financial adjustment (IFRS / CPC) |
(29,171) |
(80,517) |
- |
(25,337) |
(70,388) |
- | |||||
Property, plant and equipment - deemed cost adjustments (IFRS/CPC) |
(80,494) |
(223,596) |
- |
(83,145) |
(230,939) |
- | |||||
Total |
(114,874) |
(312,986) |
(7,617) |
(12,416) |
(33,620) |
78 |
9.4 - Reconciliation of the amounts of income tax and social contribution reported in the quarters and nine months ended September 30, 2011 and 2010:
Parent company | ||||||||||||||||
CSLL |
|
|
IRPJ |
|
| |||||||||||
2011 |
2010 |
2011 |
2010 | |||||||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||||||
Income before taxes |
|
369,609 |
1,138,265 |
341,994 |
1,204,111 |
369,609 |
1,138,265 |
341,994 |
1,204,111 | |||||||
Adjustments to reflect effective rate: |
|
|||||||||||||||
Equity in subsidiaries |
(402,406) |
(1,279,552) |
(383,620) |
(1,341,540) |
(402,406) |
(1,279,552) |
(383,620) |
(1,341,540) | ||||||||
Amortization of intangible asset acquired |
28,641 |
85,922 |
28,945 |
86,836 |
36,297 |
108,892 |
36,255 |
108,495 | ||||||||
Interest on shareholders´ equity |
- |
101,560 |
- |
98,669 |
- |
101,560 |
- |
98,669 | ||||||||
Other permanent additions, net |
690 |
701 |
(172) |
400 |
1,310 |
1,346 |
3,807 |
2,976 | ||||||||
Calculation base |
|
(3,466) |
46,896 |
(12,853) |
48,476 |
4,811 |
70,511 |
(1,564) |
72,711 | |||||||
Statutory rate |
9% |
9% |
9% |
9% |
25% |
25% |
25% |
25% | ||||||||
Tax debit result |
|
312 |
(4,221) |
1,157 |
(4,363) |
(1,203) |
(17,628) |
391 |
(18,178) | |||||||
Tax credit allocated |
- |
(0) |
- |
- |
- |
12 |
606 |
606 | ||||||||
Total |
|
312 |
(4,221) |
1,157 |
(4,363) |
(1,203) |
(17,615) |
997 |
(17,572) | |||||||
Current |
|
260 |
(2,918) |
499 |
(3,862) |
(775) |
(12,347) |
(203) |
(14,647) | |||||||
Deferred |
|
52 |
(1,303) |
658 |
(501) |
(427) |
(5,268) |
1,200 |
(2,925) |
43
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||||||||||
CSLL |
|
|
IRPJ |
|
| ||||||||||
2011 |
2010 |
2011 |
2010 | ||||||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||||||
Income before taxes |
577,268 |
1,755,159 |
548,899 |
1,868,551 |
577,268 |
1,755,159 |
548,899 |
1,868,551 | |||||||
Adjustments to reflect effective rate: |
|||||||||||||||
Amortization of intangible asset acquired |
28,778 |
86,059 |
28,945 |
86,836 |
36,735 |
109,937 |
36,478 |
109,164 | |||||||
Realization CMC |
2,514 |
7,670 |
2,449 |
8,590 |
- |
- |
- |
- | |||||||
Effect of presumed profit system |
(20,475) |
(34,687) |
(12,490) |
(21,312) |
(24,104) |
(40,482) |
(14,176) |
(24,792) | |||||||
Exclusion Law 11,941/09 art. 4 |
121 |
135 |
- |
- |
121 |
541 |
- |
- | |||||||
Other permanent additions, net |
294 |
3,289 |
4,840 |
4,438 |
(8,863) |
(15,666) |
(752) |
(19,081) | |||||||
Calculation base |
588,498 |
1,817,623 |
572,643 |
1,947,103 |
581,157 |
1,809,488 |
570,449 |
1,933,842 | |||||||
Statutory rate |
9% |
9% |
9% |
9% |
25% |
25% |
25% |
25% | |||||||
Tax debit result |
(52,965) |
(163,586) |
(51,538) |
(175,239) |
(145,289) |
(452,372) |
(142,612) |
(483,461) | |||||||
Tax credit allocated |
(1) |
(62) |
(1,103) |
(3,077) |
52 |
(116) |
(2,865) |
(8,360) | |||||||
Total |
(52,966) |
(163,648) |
(52,641) |
(178,316) |
(145,237) |
(452,488) |
(145,477) |
(491,821) | |||||||
Current |
(52,181) |
(147,416) |
(53,610) |
(156,746) |
(142,841) |
(408,874) |
(150,069) |
(435,890) | |||||||
Deferred |
(785) |
(16,232) |
969 |
(21,570) |
(2,396) |
(43,614) |
4,592 |
(55,931) |
44
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
( 10 ) FINANCIAL ASSET OF CONCESSION
|
Consolidated |
As of December 31, 2010 |
934,646 |
Additions |
258,186 |
Marked to market |
41,470 |
Disposal |
(416) |
As of September 30, 2011 |
1,233,886 |
The balance refers to the fair value of the financial asset in relation to the right established in the energy distributors’ concession agreements 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 the consumers and realized on receipt of the electric energy bills. The difference in relation to the adjustment to fair value is recognized against the revaluation reserve in equity.
( 11 ) OTHER CREDITS
Consolidated | ||||||||
Current |
Noncurrent | |||||||
September 30, 2011 |
December 31, 2010 |
September 30, 2011 |
December 31, 2010 | |||||
Receivables - BAESA |
4,582 |
17,155 |
- |
- | ||||
Advances - Fundação CESP |
15,158 |
7,995 |
- |
- | ||||
Advances to suppliers |
22,908 |
16,677 |
- |
- | ||||
Pledges, funds and tied deposits |
37,198 |
2,107 |
95,784 |
89,050 | ||||
Fund tied to foreign currency loans |
- |
- |
24,185 |
21,222 | ||||
Orders in progress |
134,025 |
50,860 |
- |
- | ||||
Reimbursement RGR |
4,889 |
5,683 |
1,909 |
1,909 | ||||
Advance energy purchase agreements |
40,269 |
15,817 |
55,705 |
65,786 | ||||
Collection agreements |
40,325 |
48,228 |
- |
- | ||||
Prepaid expenses |
28,030 |
29,550 |
1,644 |
2,722 | ||||
Other |
117,152 |
59,739 |
38,704 |
41,412 | ||||
Total |
|
444,535 |
253,812 |
217,932 |
222,100 |
( 12 ) INVESTMENTS
|
Parent company | ||
|
September 30, 2011 |
December 31, 2010 | |
Permanent equity interests - equity method |
|
|
|
By equity method of the subsidiary |
4,977,851 |
|
4,764,698 |
Value-added of assets, net |
1,287,428 |
|
1,396,320 |
Goodwill |
6,054 |
|
6,054 |
Total |
6,271,333 |
|
6,167,072 |
12.1 - Permanent Equity Interests – equity method:
45
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
The main information on the investments in direct permanent equity interests is as follows:
September 30, 2011 |
September 30, 2011 |
December 31, 2010 |
September 30, 2011 |
September 30,2010 | ||||||||
Investment |
Number of shares (thousand) |
Profit or loss for the year |
Shareholders Equity Interest |
Equity in Subsidiaries | ||||||||
CPFL Paulista |
144,378 |
447,510 |
729,048 |
808,682 |
447,510 |
545,265 | ||||||
CPFL Piratininga |
53,031,259 |
248,272 |
326,802 |
396,907 |
248,272 |
221,130 | ||||||
CPFL Santa Cruz |
371,772 |
23,675 |
108,000 |
101,759 |
23,675 |
14,838 | ||||||
CPFL Leste Paulista |
895,733 |
10,142 |
64,591 |
66,912 |
10,142 |
11,529 | ||||||
CPFL Sul Paulista |
463,482 |
13,266 |
60,383 |
62,467 |
13,266 |
11,146 | ||||||
CPFL Jaguari |
212,126 |
10,661 |
41,199 |
43,433 |
10,661 |
8,210 | ||||||
CPFL Mococa |
121,761 |
5,423 |
36,140 |
36,691 |
5,423 |
6,719 | ||||||
RGE |
807,168 |
176,350 |
1,198,304 |
1,186,849 |
176,350 |
189,808 | ||||||
CPFL Geração |
205,487,716 |
210,525 |
2,312,943 |
1,908,873 |
210,525 |
164,267 | ||||||
CPFL Jaguari Geração |
40,108 |
6,922 |
44,330 |
46,334 |
6,922 |
5,622 | ||||||
CPFL Brasil |
2,999 |
110,066 |
40,080 |
94,234 |
110,066 |
153,851 | ||||||
CPFL Planalto |
630 |
10,387 |
4,475 |
6,353 |
10,387 |
8,300 | ||||||
CPFL Serviços |
1,482,334 |
4,454 |
8,758 |
4,304 |
4,454 |
1,116 | ||||||
CPFL Atende (*) |
1 |
1,060 |
305 |
(755) |
1,060 |
101 | ||||||
Chumpitaz |
100 |
927 |
927 |
- |
927 |
(250) | ||||||
CPFL Jaguariuna |
189,620 |
(88) |
1,566 |
1,654 |
(88) |
(112) | ||||||
TOTAL |
4,977,851 |
4,764,698 |
1,279,552 |
1,341,540 | ||||||||
(*) Number of quotes |
||||||||||||
12.2 – 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.
12.3 – Dividend and Interest on shareholders’ equity receivable:
Parent Company | |||
Subsidiaries |
September 30, 2011 |
December 31, 2010 | |
CPFL Paulista |
- |
237,000 | |
CPFL Santa Cruz |
- |
12,000 | |
CPFL Sul Paulista |
8,126 |
- | |
CPFL Jaguari |
7,682 |
- | |
RGE |
106,457 |
- | |
CPFL Geração |
- |
85,000 | |
CPFL Brasil |
- |
75,000 | |
CPFL Serviços |
3,648 |
3,648 | |
125,913 |
412,648 |
By decision of the AGM/EGM, the Company recorded R$ 604,450 in the first half year as dividend and interest on shareholder’s equity receivable for 2010.
The subsidiaries also declared interim interest on shareholder’s equity of R$ 101,560 (R$ 86,326 net of withholding tax) and R$ 714,892 as interim dividends in the period in relation to the income for the first half-year of 2011. After approval by the Board of Directors in June and August 2011, these amounts were recorded as accounts receivable, in accordance with item 3.9.
46
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Of the amounts registered as accounts receivable, R$ 1,692,402 has been paid to the Company by the subsidiaries.
12.4 Business combination (CPFL Renováveis)
CPFL Renováveis was created by the merger of the previously indirect subsidiary, SMITA by ERSA, through the corporate restructuring described in note 1.1, in accordance with the terms and conditions established in the Merger Protocol signed by both companies and described in the Relevant Fact disclosed on August 23, 2011.
As a result of this merger, the equity of CPFL Renováveis increased by R$ 980,827, of which R$ 596,631 corresponds to the net equity of SMITA, determined at book value at July 31, 2011, and R$ 384,196 to the capital contribution made by the subsidiaries CPFL Geração and CPFL Brasil.
The ratio of substitution of ERSA shares to SMITA shares, for merger purposes, was based on the economic value of the business of ERSA and SMITA.
ERSA issued 913,475,299 new common shares in the name of CPFL Geração and CPFL Brasil, which grant equal rights to those conferred by the common shares issued by ERSA in the past.
CPFL Energia now indirectly holds 54.50% of CPFL Renováveis, having assumed control on August 1, 2011, since which date it has fully consolidated the subsidiary.
The association resulted in a business combination, as per CPC 15, since the Company now controls CPFL Renováveis. The amount of the consideration transferred in this transaction was R$ 1,419,106. From an essentially accounting viewpoint, as it was the Company that acquired the control, although ERSA (acquire for accouting purposes) is the merged company, this operation represents a reverse acquisition, and ERSA's net assets were therefore assessed at fair value. The evaluation report issued by specialists resulted in recording of value added in CPFL Renováveis attributed to the intangible concession asset of R$ 533,757, net of deferred income tax and social contribution of R$ 378,606 (Note 9,3), set against the revaluation reserve in equity (note 14).
As a result of its corporate interest, the Company registered the amount of R$ 290,898 in Investments, set against the revaluation reserve in equity. The effects registered in the investments of the subsidiaries CPFL Geração and CPFL Brasil were R$ 232,975 and R$ 57,922, respectively.
Also as a result of the business combination, as the ratio of exchange of interests in the subsidiaries CPFL Geração and CPFL Brasil in CPFL Renováveis was established at its economic value, in order for their investments to adequately reflect the participation in CPFL Renováveis, an addition of R$ 36,239 was made to the reserve recorded by the Company (an increase of R$ 86,280 for the subsidiary CPFL Geração and a decrease of R$ 50,041 for the subsidiary CPFL Brasil). Accordingly, the net amount registered in the reserve resulting from the business combination was R$ 327,134, to be amortized based on the concession term of CPFL Renováveis (Note 24.4).
ERSA’s assets and liabilities at fair value identified in the report are shown below:
47
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Report at fair values |
Carrying value |
Fair values |
(ERSA – July 31, 2011) |
(R$ thousands) |
(R$ thousands) |
Current assets |
100,701 |
100,701 |
Noncurrent assets |
801,979 |
1,335,771 |
Current liabilities |
(12,696) |
(12,696) |
Noncurrent liabilities |
(4,635) |
(4,670) |
Shareholders’ equity |
(885,349) |
(1,419,106) |
Intangible concession asset |
|
(533,757) |
The net revenue, Income from Electric Energy Service (loss) and net loss of the acquiree (Ersa) from the acquisition date was fully consolidated in CPFL Renováveis and corresponds to R$ 25,167, R$ 894 and R$ 3,362, respectively.
If the acquisition date had been January 1, 2011, the net revenue, Income from Electric Energy Service and net income of CPFL Renováveis would have been R$ 193,092, R$75,279 and R$50,750, respectively.
The value of the minority interests in CPFL Renováveis at the acquisition date was R$ 1,091,969, in accordance with the participation of 45.5% in the shareholders’ equity of CPFL Renováveis.
Pursuant to CPC 15, recording of this business combination is currently at the measurement stage. If there is any factor that, in the Company's opinion, involves adjustments to the operation, these will be made retroactively to the date the operation was put into effect.
( 13 ) PROPERTY, PLANT AND EQUIPMENT
Consolidated | |||||||||||||||
Land |
Reservoirs, dams and water mains |
Buildings, construction and improvements |
Machinery and equipment |
Vehicles |
Furniture and fittings |
In progress |
Total | ||||||||
As of December 31, 2010 |
180,382 |
1,533,696 |
1,354,882 |
1,916,219 |
3,695 |
12,940 |
784,650 |
5,786,465 | |||||||
Cost |
182,772 |
1,814,135 |
1,674,388 |
2,655,031 |
7,885 |
16,442 |
784,650 |
7,135,303 | |||||||
Accumulated depreciation |
(2,390) |
(280,439) |
(319,506) |
(738,812) |
(4,190) |
(3,502) |
- |
(1,348,838) | |||||||
Additions |
1,652 |
2,889 |
1,664 |
835 |
378 |
155 |
412,351 |
419,924 | |||||||
Disposals |
(8) |
(311) |
- |
(2,727) |
(334) |
8 |
- |
(3,372) | |||||||
Transfers |
(23,968) |
69,027 |
30,615 |
464,014 |
373 |
1,437 |
(541,499) |
- | |||||||
Transfers - other assets |
- |
- |
64 |
10,301 |
- |
- |
(17,525) |
(7,160) | |||||||
Depreciation |
(1,113) |
(49,536) |
(40,156) |
(76,968) |
(790) |
(1,269) |
- |
(169,832) | |||||||
Corporate Restructuring |
25,538 |
- |
606,144 |
285,285 |
165 |
751 |
38,564 |
956,447 | |||||||
As of September 30, 2011 |
182,483 |
1,555,765 |
1,953,212 |
2,596,959 |
3,487 |
14,023 |
676,542 |
6,982,472 | |||||||
Cost |
185,986 |
1,885,739 |
2,322,818 |
3,434,368 |
8,467 |
19,023 |
676,542 |
8,532,942 | |||||||
Accumulated depreciation |
(3,503) |
(329,974) |
(369,605) |
(837,409) |
(4,979) |
(5,000) |
- |
(1,550,470) | |||||||
Average depreciation rate |
- |
2,39% |
4,23% |
4,54% |
20,00% |
10,00% |
- |
As mentioned in item 3.4, certain assets 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.
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 note 29.
As a result of the corporate restructuring of CPFL Renováveis, as of August 1, 2011, fixed assets of R$ 956,447, previously the property of ERSA, were merged and are consolidated in CPFL Renováveis.
48
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
( 14 ) INTANGIBLE ASSETS
Consolidated | |||||||
September 30, 2011 |
December 31, 2010 | ||||||
Historic cost |
Accumulated amortization |
Net value |
Net value | ||||
Goodwill |
6,054 |
- |
6,054 |
6,054 | |||
Intangible assets - Concession rights: |
|||||||
Acquired in business combinations |
4,918,442 |
(1,835,193) |
3,083,250 |
2,041,944 | |||
Distribution infrastructure - operational |
8,729,318 |
(5,222,839) |
3,506,479 |
3,335,775 | |||
Distribution infrastructure - in progress |
682,508 |
- |
682,508 |
694,139 | |||
Public utility |
407,286 |
(20,863) |
386,424 |
397,984 | |||
Other intangible assets |
158,951 |
(64,602) |
94,349 |
108,978 | |||
Total intangible assets |
14,902,560 |
(7,143,496) |
7,759,064 |
6,584,874 | |||
Historic cost |
14,902,560 |
13,228,307 | |||||
Accumulated amortization |
(7,143,496) |
(6,643,433) | |||||
7,759,064 |
6,584,874 |
14.1 – Intangible asset from business combination
The added value on assets in relation to the right to exploit the concession acquired through business combinations is shown below.
49
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated |
|||||||||||
September 30, 2011 |
December 31, 2010 |
Annual amortization rate | |||||||||
Historic cost |
Accumulated amortization |
Net value |
Net value |
2011 |
2010 | ||||||
Intangible asset - acquired in business combinations |
|||||||||||
Intangible asset acquired, not merged |
|||||||||||
Parent Company |
|||||||||||
CPFL Paulista |
304,861 |
(115,293) |
189,568 |
204,045 |
6.33% |
6.53% | |||||
CPFL Piratininga |
39,065 |
(14,216) |
24,849 |
26,603 |
5.99% |
6.19% | |||||
RGE |
3,150 |
(751) |
2,399 |
2,560 |
6.81% |
6.53% | |||||
CPFL Geração |
54,555 |
(20,127) |
34,428 |
36,733 |
5.63% |
5.80% | |||||
CPFL Santa Cruz |
9 |
(3) |
7 |
8 |
21.17% |
14.10% | |||||
CPFL Leste Paulista |
3,333 |
(953) |
2,381 |
2,887 |
20.30% |
13.39% | |||||
CPFL Sul Paulista |
7,288 |
(1,970) |
5,319 |
6,356 |
18.98% |
12.79% | |||||
CPFL Jaguari |
5,213 |
(1,597) |
3,616 |
4,503 |
22.68% |
13.62% | |||||
CPFL Mococa |
9,110 |
(2,626) |
6,484 |
7,841 |
19.87% |
13.92% | |||||
CPFL Jaguari Geração |
7,896 |
(958) |
6,938 |
7,422 |
8.17% |
6.00% | |||||
434,480 |
(158,493) |
275,987 |
298,957 |
||||||||
Subsidiaries |
|||||||||||
ENERCAN |
10,233 |
(2,847) |
7,386 |
7,916 |
6.90% |
6.93% | |||||
Barra Grande |
3,081 |
(1,150) |
1,931 |
2,069 |
5.98% |
5.93% | |||||
Chapecoense |
7,376 |
(225) |
7,150 |
7,376 |
4.08% |
0.00% | |||||
EPASA |
499 |
(14) |
484 |
499 |
3.85% |
0.00% | |||||
Windfarm Santa Clara |
- |
- |
- |
31,737 |
- |
- | |||||
Windfarm Campo dos Ventos |
- |
- |
- |
5,576 |
- |
- | |||||
CPFL Renováveis |
1,220,780 |
(4,123) |
1,216,657 |
- |
4.45% |
- | |||||
Others |
14,478 |
(11,771) |
2,707 |
3,248 |
4.99% |
4.99% | |||||
1,256,446 |
(20,130) |
1,236,315 |
58,421 |
||||||||
Subtotal |
1,690,926 |
(178,623) |
1,512,302 |
357,379 |
|||||||
Intangible asset acquired and merged – Deductible |
|||||||||||
Subsidiaries |
|||||||||||
RGE |
1,120,266 |
(753,658) |
366,609 |
380,711 |
1.68% |
1.69% | |||||
CPFL Geração |
426,450 |
(233,552) |
192,898 |
206,491 |
4.25% |
3.92% | |||||
Subtotal |
1,546,716 |
(987,210) |
559,506 |
587,202 |
|||||||
Intangible asset acquired and merged – Reassessed |
|||||||||||
Parent company |
|||||||||||
CPFL Paulista |
1,074,026 |
(461,869) |
612,157 |
658,503 |
5.75% |
5.93% | |||||
CPFL Piratininga |
115,762 |
(42,126) |
73,635 |
78,834 |
5.99% |
6.19% | |||||
RGE |
310,128 |
(82,133) |
227,994 |
243,296 |
6.58% |
6.30% | |||||
CPFL Santa Cruz |
61,685 |
(34,967) |
26,718 |
32,778 |
13.10% |
13.07% | |||||
CPFL Leste Paulista |
27,034 |
(11,690) |
15,343 |
18,507 |
15.59% |
15.46% | |||||
CPFL Sul Paulista |
38,168 |
(16,172) |
21,996 |
26,312 |
15.16% |
15.17% | |||||
CPFL Mococa |
15,124 |
(6,702) |
8,422 |
10,174 |
15.34% |
15.87% | |||||
CPFL Jaguari |
23,600 |
(10,260) |
13,340 |
16,300 |
16.72% |
15.75% | |||||
CPFL Jaguari Geração |
15,275 |
(3,441) |
11,834 |
12,659 |
7.20% |
7.94% | |||||
Subtotal |
1,680,801 |
(669,360) |
1,011,441 |
1,097,363 |
|||||||
Total |
4,918,442 |
(1,835,193) |
3,083,250 |
2,041,944 |
|||||||
14.2 Changes in Intangible assets
The changes in intangible assets changes for the period ended September 30, 2011 are shown below:
Consolidated | ||||||||||||||
Concession right |
||||||||||||||
Goodwill |
Acquired in business combinations |
Public utility |
Distribution infrastructure - operational |
Distribution infrastructure - in progress |
Other intangible assets |
TOTAL | ||||||||
Intangible asset at December 31, 2010 |
6,054 |
2,041,944 |
397,984 |
3,335,775 |
694,139 |
108,978 |
6,584,874 | |||||||
Additions |
- |
35,777 |
- |
15,526 |
752,656 |
5,906 |
809,865 | |||||||
Amortization |
- |
(138,847) |
(11,561) |
(284,685) |
- |
(10,582) |
(445,675) | |||||||
Transfer - intangible assets |
- |
- |
- |
441,485 |
(441,485) |
0 |
0 | |||||||
Transfer - financial asset |
- |
- |
- |
- |
(258,186) |
- |
(258,186) | |||||||
Transfer - other assets |
- |
- |
- |
(1,621) |
(64,616) |
(9,953) |
(76,190) | |||||||
Corporate Restructuring |
1,144,376 |
- |
- |
- |
- |
1,144,376 | ||||||||
Intangible asset at September 30, 2011 |
6,054 |
3,083,250 |
386,424 |
3,506,479 |
682,508 |
94,349 |
7,759,064 |
50
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
At September 30, 2011, of the total intangible assets acquired by business combinations, R$ 1,144,376 was added in the context of the corporate restructuring of CPFL Renováveis (Note 12.4). Of the total amount, R$912,363 regards to reserve acquisition and R$232,013 refers to carrying balances from the acquiree as of July 31, 2011. Additions amounting to R$ 35,777 refer to business acquisitions by CPFL Renováveis since August 1.
In accordance with CPC20, interests on loans taken out by the subsidiaries are capitalized for the qualified intangible assets. For further details about amounts capitalized and interest rates, see note 29.
( 15 ) SUPPLIERS
Consolidated | |||
September 30, 2011 |
December 31, 2010 | ||
Current |
|||
System Service Charges |
36,396 |
32,406 | |
Energy purchased |
679,481 |
584,018 | |
Electricity Network Usage Charges |
167,603 |
160,099 | |
Materials and Services |
196,559 |
199,264 | |
Free Energy |
76,390 |
70,262 | |
Other |
40,935 |
1,335 | |
Total |
1,197,365 |
1,047,385 |
( 16 ) INTEREST ON DEBTS, LOANS AND FINANCING
Consolidated | ||||||||||||||||
September 30, 2011 |
|
December 31, 2010 | ||||||||||||||
Interest - Current and Noncurrent |
Principal |
Total |
Interest - Current and Noncurrent |
Principal |
Total | |||||||||||
Current |
Noncurrent |
Current |
Noncurrent |
|||||||||||||
Measured at cost |
||||||||||||||||
Brazilian currency |
||||||||||||||||
BNDES - Power increases |
35 |
3,690 |
5,725 |
9,450 |
55 |
5,040 |
8,498 |
13,593 | ||||||||
BNDES - Investment |
15,172 |
465,111 |
3,325,693 |
3,805,976 |
8,494 |
329,993 |
3,016,364 |
3,354,851 | ||||||||
BNDES - Property income |
29 |
2,077 |
4,633 |
6,740 |
46 |
2,002 |
4,737 |
6,785 | ||||||||
BNDES - Working capital |
765 |
111,129 |
64,710 |
176,603 |
983 |
70,121 |
141,677 |
212,781 | ||||||||
Financial Institutions |
122,907 |
244,971 |
1,465,861 |
1,833,739 |
50,269 |
144,624 |
1,255,312 |
1,450,205 | ||||||||
Other |
793 |
25,066 |
51,926 |
77,785 |
594 |
23,337 |
34,477 |
58,408 | ||||||||
Subtotal |
139,702 |
852,044 |
4,918,548 |
5,910,293 |
60,440 |
575,117 |
4,461,065 |
5,096,622 | ||||||||
Foreign currency |
||||||||||||||||
Financial Institutions |
1,011 |
4,174 |
43,265 |
48,450 |
432 |
3,751 |
40,750 |
44,932 | ||||||||
Total at Cost |
140,712 |
856,218 |
4,961,813 |
5,958,743 |
60,872 |
578,867 |
4,501,815 |
5,141,554 | ||||||||
Measured at fair value |
||||||||||||||||
Foreign currency |
||||||||||||||||
Financial Institutions |
23,261 |
500,189 |
1,641,684 |
2,165,134 |
8,799 |
- |
416,027 |
424,827 | ||||||||
Total at fair value |
23,261 |
500,189 |
1,641,684 |
2,165,134 |
8,799 |
- |
416,027 |
424,827 | ||||||||
Total |
163,973 |
1,356,407 |
6,603,497 |
8,123,877 |
69,671 |
578,867 |
4,917,843 |
5,566,381 |
51
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated |
||||||||||
Measured at cost |
September 30, 2011 |
December 31, 2010 |
Annual interest |
Amortization |
Collateral | |||||
Brazilian currency |
||||||||||
BNDES - Power increases |
||||||||||
CPFL Geração |
- |
13,593 |
TJLP + 3.1% up to 4.3% |
36 to 84 monthly installments from february 2003 to december 2008 |
CPFL Energia and CPFL Paulista guarantee | |||||
CPFL Geração |
9,450 |
- |
TJLP + 3.1% to 4.3% |
72 to 75 monthly installments from september 2007 to july 2008 |
CPFL Energia guarantee and Promissory Note | |||||
BNDES/BNB - Investment |
||||||||||
CPFL Paulista - FINEM III |
60,518 |
80,711 |
TJLP + 3.3% |
72 monthly installments from january 2008 |
CPFL Energia guarantee, receivables and Promissory Note | |||||
CPFL Paulista - FINEM IV |
208,413 |
256,572 |
TJLP + 3.28% to 3.4% |
60 monthly installments from january 2010 |
CPFL Energia guarantee and receivables | |||||
CPFL Paulista - FINEM V |
99,538 |
98,051 |
TJLP + 2.12% to 3.3% |
72 monthly installments from february 2012 |
CPFL Energia guarantee and receivables | |||||
CPFL Paulista - FINEM V |
35,202 |
35,135 |
Fixed rate 5.5% to 8.0% |
114 monthly installments from august 2011 |
CPFL Energia guarantee and receivables | |||||
CPFL Paulista - FINAME |
50,716 |
36,067 |
Fixed rate 4.5% |
96 monthly installments from january 2012 |
CPFL Energia guarantee | |||||
CPFL Piratininga - FINEM II |
35,950 |
47,945 |
TJLP + 3.3% |
72 monthly installments from january 2008 |
CPFL Energia guarantee, receivables and Promissory Note | |||||
CPFL Piratininga - FINEM III |
86,870 |
106,944 |
TJLP + 3.28% to 3.4% |
60 monthly installments from january 2010 |
CPFL Energia guarantee and receivables | |||||
CPFL Piratininga - FINEM IV |
55,923 |
55,099 |
TJLP + 2.12% to 3.3% |
72 monthly installments from february 2012 |
CPFL Energia guarantee and receivables | |||||
CPFL Piratininga - FINEM IV |
13,096 |
13,081 |
Fixed rate 5.5% to 8.0% |
114 monthly installments from august 2011 |
CPFL Energia guarantee and receivables | |||||
CPFL Piratininga - FINAME |
30,176 |
22,905 |
Fixed rate 4.5% |
96 monthly installments from january 2012 |
CPFL Energia guarantee | |||||
RGE - FINEM III |
28,028 |
44,858 |
TJLP + 5.0% |
60 monthly installments from december 2012 |
Receivables / CPFL Energia guarantee | |||||
RGE - FINEM IV |
132,666 |
163,321 |
TJLP + 3.28 to 3.4% |
60 monthly installments from december 2014 |
Receivables / CPFL Energia guarantee | |||||
RGE - FINEM V |
60,917 |
59,967 |
TJLP + 2.12 to 3.3% |
72 monthly installments from december 2018 |
Receivables / CPFL Energia guarantee | |||||
RGE - FINEM V |
9,742 |
9,710 |
Fixed rate 5.5% |
96 monthly installments from january 2021 |
Receivables / CPFL Energia guarantee | |||||
RGE - FINAME |
13,724 |
4,857 |
Fixed rate 4.5% |
96 monthly installments from december 2019 |
CPFL Energia guarantee | |||||
CPFL Santa Cruz |
8,624 |
10,483 |
TJLP + 2.0% to 2.90% |
54 monthly installments from december 2010 |
CPFL Energia guarantee and receivables | |||||
CPFL Mococa |
4,562 |
5,475 |
TJLP + 2.90% |
54 monthly installments from january 2011 |
CPFL Energia guarantee and receivables | |||||
CPFL Jaguari |
4,005 |
4,825 |
TJLP + 2.90% |
54 monthly installments from december 2010 |
CPFL Energia guarantee and receivables | |||||
CPFL Leste Paulista |
5,846 |
3,261 |
TJLP + 2.90% |
54 monthly installments from june 2011 |
CPFL Energia guarantee and receivables | |||||
CPFL Sul Paulista |
6,331 |
4,735 |
TJLP + 2.90% |
54 monthly installments from june 2011 |
CPFL Energia guarantee and receivables | |||||
CPFL Geração |
- |
74,531 |
TJLP + 1.72% |
192 monthly installments from may 2013 |
Shares / Receivables / Equipment/ CPFL Energia guarantee | |||||
BAESA |
108,547 |
120,347 |
TJLP + 3.125% to 4.125% |
144 monthly installments from september 2006 |
Pledge of shares, credit rights and revenue | |||||
BAESA |
23,628 |
24,244 |
UMBND + 3.125% (1) |
144 monthly installments from november 2006 |
Pledge of shares, credit rights and revenue | |||||
ENERCAN |
249,018 |
273,992 |
TJLP + 4% |
144 monthly installments from april 2007 |
Letters of guarantee | |||||
ENERCAN |
16,149 |
15,932 |
UMBND + 4% |
144 monthly installments from april 2007 |
Letters of guarantee | |||||
CERAN |
520,352 |
557,451 |
TJLP + 3.69% to 5% |
168 monthly installments from december 2005 |
CPFL Energia guarantee | |||||
CERAN |
55,244 |
53,845 |
UMBND + 3.69% to 5% (1) |
168 monthly installments from february 2006 |
CPFL Energia guarantee | |||||
Foz do Chapecó |
1,060,644 |
996,013 |
TJLP + 2.49% to 2.95% |
192 monthly installments from october 2011 |
Pledge of shares, credit and concession rights and revenue and CPFL Energia guarantee | |||||
CPFL Bioenergia - FINEM |
- |
39,512 |
TJLP + 1.9% |
144 monthly installments from june 2011 |
Mortgage, credit rights and CPFL Energia guarantee | |||||
CPFL Bioenergia - FINAME |
- |
39,369 |
Fixed rate 4.5% |
102 monthly installments from june 2011 |
Mortgage, credit rights and CPFL Energia guarantee | |||||
CPFL Renováveis - FINEM I |
420,428 |
- |
TJLP + 1.95% |
168 monthly installments from october 2009 to July 2011 |
PCH Holding a joint debtor, Letters of guarantee | |||||
CPFL Renováveis- FINEM II |
39,659 |
- |
TJLP + 1.9% |
144 monthly installments from june 2011 |
Mortgage, credit rights and CPFL Energia guarantee | |||||
CPFL Renováveis - FINEM III |
194,185 |
- |
TJLP + 1.72% to 1.9% |
156 to 192 monthly installments from January 2012 to may 2013 |
Mortgage, credit rights and CPFL Energia guarantee | |||||
CPFL Renovaveis - FINEM III |
5,808 |
- |
TJLP + 3.5% |
46 monthly installments from April 2011 |
CPFL Energia guarantee, pledge of receivables and reserves to payment. | |||||
CPFL Renováveis - FINAME |
122,938 |
- |
Fixed rate 5.5% |
102 to 108 monthly installments from January 2012 to August 2012 |
Mortgage, credit rights and CPFL Energia guarantee | |||||
CPFL Renováveis - FINAME |
38,530 |
- |
Fixed rate 4.5% |
102 monthly installments from june 2011 |
Mortgage, credit rights and CPFL Energia guarantee | |||||
BNDES - Other |
||||||||||
CPFL Brasil - Purchase of assets |
4,165 |
6,785 |
TJLP + de 1.94% to 2.84% |
36 monthly installments from may 2009 |
Tied to the asset acquired | |||||
CPFL Brasil - Purchase of assets |
2,574 |
- |
Fixed rate 4.5% to 8.70% |
96 monthly installments from march 2012 |
CPFL Energia guarantee | |||||
CPFL Piratininga - Working capital |
92,051 |
105,652 |
TJLP + 5.0% (3) |
24 monthly installments from february 2011 and october 2011 |
No guarantee | |||||
CPFL Geração - FINEM - Working capital |
49,076 |
53,232 |
TJLP + 4.95% |
24 monthly installments from july 2011 |
CPFL Energia guarantee | |||||
CPFL Geração - FINAME - Working capital |
35,476 |
53,896 |
TJLP + 4.95% (2) |
23 monthly installments from february 2011 |
CPFL Energia guarantee | |||||
Furnas Centrais Elétricas S.A. |
||||||||||
CPFL Geração |
||||||||||
Financial Institutions |
||||||||||
CPFL Paulista |
||||||||||
Banco do Brasil |
108,620 |
104,890 |
107% of CDI |
1 installment in April 2015 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (*) |
217,993 |
199,622 |
98.50% of CDI |
4 annual installments from July 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
156,163 |
- |
99.00% of CDI |
2 annual installments from march 2013. |
CPFL Energia guarantee | |||||
CPFL Piratininga |
||||||||||
Banco do Brasil - Working capital (*) |
20,049 |
18,360 |
98.5% of CDI |
4 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
20,092 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
RGE |
||||||||||
Banco do Brasil - Working capital (*) |
258,737 |
236,830 |
98.5% of CDI |
4 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
57,771 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
CPFL Santa Cruz |
||||||||||
HSBC |
- |
45,206 |
CDI + 1.10% |
1 installment in June 2011 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (*) |
17,853 |
16,337 |
98.5% of CDI |
2 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
7,099 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
CPFL Sul Paulista |
||||||||||
Banco do Brasil - Working capital (*) |
11,046 |
10,109 |
98.5% of CDI |
2 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
9,786 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
CPFL Leste Paulista |
||||||||||
Banco do Brasil - Working capital (*) |
18,355 |
16,798 |
98.5% of CDI |
2 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
18,249 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
CPFL Mococa |
||||||||||
Banco do Brasil - Working capital (*) |
9,262 |
8,476 |
98.5% of CDI |
2 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
3,124 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
CPFL Jaguari |
||||||||||
Banco do Brasil - Working capital (*) |
1,953 |
1,786 |
98.5% of CDI |
2 annual installments from july 2012 |
CPFL Energia guarantee | |||||
Banco do Brasil - Working capital (**) |
6,142 |
- |
99.0% of CDI |
2 annual installments from march 2013 |
CPFL Energia guarantee | |||||
CPFL Geração |
||||||||||
Banco Itaú BBA |
- |
103,371 |
106.0% of CDI |
1 installment in february 2014 |
CPFL Energia guarantee | |||||
Banco Alfa |
||||||||||
Banco do Brasil |
649,740 |
627,432 |
107.0% of CDI |
1 installment in april 2015 |
CPFL Energia guarantee | |||||
Banco Alfa |
||||||||||
CERAN |
||||||||||
Banco Bradesco |
||||||||||
Banco Bradesco |
23,287 |
22,439 |
CDI + 1.75% |
1 installment in april 2012 |
No guarantee | |||||
Foz do Chapecó |
||||||||||
Banco Alfa |
25,377 |
- |
111.45% of CDI |
1 installment in january 2012 |
No guarantee | |||||
CPFL Renovaveis |
||||||||||
Banco Safra |
55,762 |
- |
CDI+ 0.4% |
annual installment 2014 |
No guarantee | |||||
Banco Safra |
41,600 |
- |
CDI + 0.4% |
annual installment 2014 |
No guarantee | |||||
Epasa |
||||||||||
EPASA - BNB |
95,679 |
95,613 |
Fixed rate 10% |
132 monthly installments from january 2013 |
Bank guarantee | |||||
Other |
||||||||||
Eletrobrás |
||||||||||
CPFL Paulista |
9,200 |
10,358 |
RGR + 6.0% to 6.5% |
monthly installments up to december 2022 |
Receivables and promissory notes | |||||
CPFL Piratininga |
728 |
925 |
RGR + 6% |
monthly installments up to july 2016 |
Receivables and promissory notes | |||||
RGE |
16,531 |
18,097 |
RGR + 6% |
monthly installments up to july 2016 |
Receivables and promissory notes | |||||
CPFL Santa Cruz |
3,460 |
3,947 |
RGR + 6% |
monthly installments up to april 2018 |
Receivables and promissory notes | |||||
CPFL Leste Paulista |
1,002 |
1,096 |
RGR + 6% |
monthly installments up to february 2022 |
Receivables and promissory notes | |||||
CPFL Sul Paulista |
1,660 |
1,837 |
RGR + 6% |
monthly installments up to july 2018 |
Receivables and promissory notes | |||||
CPFL Jaguari |
96 |
109 |
RGR + 6% |
monthly installments up to may 2017 |
Receivables and promissory notes | |||||
CPFL Mococa |
387 |
415 |
RGR + 6% |
monthly installments up to february 2022 |
Receivables and promissory notes | |||||
Other |
10,750 |
21,624 |
||||||||
Banco do Brasil - Law 8727 |
28,911 |
34,874 |
IGP-M + 7.42% |
240 monthly installments from may 1994 |
Receivables | |||||
CPFL Brasil - FINEP |
5,059 |
3,675 |
Fixed rate 5% |
81 monthly installments from august 2011 |
Receivables | |||||
Subtotal Brazilian Currency - Cost |
5,910,293 |
5,096,622 |
||||||||
Foreign Currency |
||||||||||
Financial institutions |
||||||||||
CPFL Paulista (5) |
||||||||||
Debt Conversion Bond |
2,222 |
2,982 |
US$ + Libor 6 months + 0.875% |
17 semiannual installments from April 2004 |
Revenue/Government SP guaranteed | |||||
New Money Bond |
||||||||||
FLIRB |
||||||||||
C-Bond |
6,129 |
6,298 |
US$ + 8% |
21 semiannual installments from April 2004 |
Revenue/Government SP guaranteed | |||||
Discount Bond |
16,277 |
14,570 |
US$ + Libor 6 months + 0.8125% |
1 installment in April 2024 |
Escrow deposits and revenue/ Gov.SP guarantee | |||||
PAR-Bond |
23,822 |
21,082 |
US$ + 6% |
1 installment in April 2024 |
Escrow deposits and revenue/ Gov.SP guarantee | |||||
Subtotal Foreign Currency - Cost |
48,450 |
44,932 |
||||||||
Total Measured at cost |
5,958,743 |
5,141,554 |
||||||||
Foreign Currency |
||||||||||
Measured at fair value |
||||||||||
Financial Institutions |
||||||||||
CPFL Paulista |
||||||||||
Banco ABN AMRO Real |
516,106 |
424,827 |
Yen +1.49% (6) |
1 installment in january 2012 |
No guarantee | |||||
BNP Paribas |
189,191 |
- |
US$ + 2.78% (3) |
1 installment in june 2014 |
CPFL Energia guarantee and promissory notes | |||||
J.P.Morgan |
92,148 |
- |
US$ + 2.74% (3) |
1 installment in july 2014 |
CPFL Energia guarantee and promissory notes | |||||
J.P.Morgan |
91,377 |
- |
US$ + 2.55% (4) |
1 installment in august 2014 |
CPFL Energia guarantee and promissory notes | |||||
Morgan Stanley |
91,993 |
- |
US$ + Libor 6 months + 1.75% (3) |
1 installment in september 2016 |
CPFL Energia guarantee and promissory notes | |||||
Bank of America |
190,139 |
- |
US$ + 3.69 % (6) |
1 installment in july 2016 |
CPFL Energia guarantee and promissory notes | |||||
Bank of America |
272,780 |
- |
US$ + 2.33% (7) |
1 installment in july 2014 |
CPFL Energia guarantee and promissory notes | |||||
Societe Generale |
40,712 |
- |
US$ + 3.55% (4) |
1 installment in august 2016 |
CPFL Energia guarantee and promissory notes | |||||
Citibank |
92,074 |
- |
US$ + Libor 6 months + 1.77% (3) |
1 installment in september 2016 |
CPFL Energia guarantee and promissory notes | |||||
HSBC |
43,473 |
- |
US$ + Libor 6 months + 2.37%(3) |
1 installment in september 2014 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Piratininga |
||||||||||
BNP Paribas |
55,048 |
- |
USD + 2.62% (3) |
1 installment in july 2014 |
CPFL Energia guarantee and promissory notes | |||||
J.P.Morgan |
182,570 |
- |
USD + 2.52% (3) |
1 installment in august 2014 |
CPFL Energia guarantee and promissory notes | |||||
Societe Generale |
53,420 |
- |
USD + 3.55% (4) |
1 installment in august 2016 |
CPFL Energia guarantee and promissory notes | |||||
Citibank |
14,686 |
- |
US$ + Libor 6 months + 1.69%(3) |
1 installment in august 2016 |
CPFL Energia guarantee and promissory notes | |||||
Sumitomo |
91,682 |
- |
US$ + Libor 6 months + 1.75%(3) |
1 installment in august 2016 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Geração |
||||||||||
Citibank |
114,749 |
- |
US$ + Libor 6 months + 1.69%(3) |
1 installment in august 2016 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Leste Paulista |
||||||||||
Citibank - Law 4131 |
8,698 |
- |
US$ + Libor 6 months + 1.52%(3) |
1 installment in september 2014 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Sul Paulista |
||||||||||
Citibank - Law 4131 |
8,698 |
- |
US$ + Libor 6 months + 1.52%(3) |
1 installment in september 2014 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Jaguari |
||||||||||
Citibank - Law 4131 |
7,977 |
- |
US$ + Libor 6 months + 1.57%(3) |
1 installment in august 2014 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Mococa |
||||||||||
Citibank - Law 4131 |
7,612 |
- |
US$ + Libor 6 months + 1.52%(3) |
1 installment in september 2014 |
CPFL Energia guarantee and promissory notes | |||||
Total Foreign Currency - fair value |
2,165,133 |
424,827 |
||||||||
Total - Consolidated |
8,123,877 |
5,566,381 |
||||||||
The subsdiaries hold swaps converting the operating cost of currency variation to interest tax variation in reais, corresponding to : |
||||||||||
(1) 139.30% of CDI |
(3) 95.5% up tp 106.5% of CDI |
|||||||||
(2) 106.3% of CDI |
(4) 106.85% of CDI |
|||||||||
(5) As certain assets are dollar indexed, a partial swap of R$ 24,268 was contracted, converting the currency variation to 105,95% of the CDI. |
||||||||||
(6) 104.98% of CDI |
(7) 96.85% of CDI |
|||||||||
(*) Efective rate: |
||||||||||
(**) Efective rate: |
||||||||||
52
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
In conformity with CPCs 38 and 39 (Financial Instruments), the Company and its subsidiaries classified their debts, as segregated in the tables above, 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 subsidiaries CPFL Paulista, CPFL Piratininga, CPFL Geração, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa and CPFL Jaguari raised funds in foreign currency for working capital and recorded them as financial liabilities measured at fair value.
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. As of September 30, 2011, the balance of the debt measured at fair value and the amount related to the amortized cost are as follows:
53
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
September 30, 2011 | ||||||||||
Value at cost |
Measured at fair value | |||||||||
Foreign currency |
Charges - current and noncurrent |
Principal |
||||||||
Measured at fair value |
Current |
Noncurrent |
Total |
|||||||
CPFL Paulista |
||||||||||
ABN AMRO Real |
15,917 |
494,307 |
- |
510,224 |
516,106 | |||||
BNP Paribas |
1,231 |
- |
191,061 |
192,293 |
189,191 | |||||
J.P.Morgan |
586 |
- |
93,306 |
93,892 |
92,148 | |||||
J.P.Morgan |
387 |
- |
93,107 |
93,494 |
91,377 | |||||
Morgan Stanley |
64 |
- |
92,784 |
92,849 |
91,993 | |||||
Bank of America |
1,422 |
- |
186,942 |
188,364 |
190,060 | |||||
Bank of America |
1,502 |
- |
279,582 |
281,084 |
272,859 | |||||
Societe Generale |
237 |
- |
40,339 |
40,576 |
40,712 | |||||
Citibank |
53 |
- |
92,773 |
92,826 |
92,074 | |||||
HSBC |
26 |
- |
44,532 |
44,558 |
43,473 | |||||
21,427 |
494,307 |
1,114,426 |
1,630,160 |
1,619,993 | ||||||
CPFL Piratininga |
||||||||||
BNP Paribas |
259 |
- |
55,632 |
55,891 |
55,048 | |||||
J.P.Morgan |
766 |
- |
185,440 |
186,206 |
182,570 | |||||
Societe Generale |
312 |
- |
52,619 |
52,931 |
53,420 | |||||
Citibank |
31 |
- |
14,835 |
14,866 |
14,686 | |||||
Sumitomo |
178 |
- |
92,325 |
92,503 |
91,682 | |||||
1,546 |
- |
400,851 |
402,397 |
397,406 | ||||||
CPFL Geração |
||||||||||
Citibank |
250 |
- |
115,900 |
116,150 |
114,749 | |||||
CPFL Sul Paulista |
||||||||||
Citibank |
7 |
- |
8,837 |
8,844 |
8,698 | |||||
CPFL Leste Paulista |
||||||||||
Citibank |
7 |
- |
8,837 |
8,844 |
8,698 | |||||
CPFL Mococa |
||||||||||
Citibank |
7 |
- |
7,732 |
7,739 |
7,612 | |||||
CPFL Jaguari |
||||||||||
Citibank |
16 |
- |
8,085 |
8,101 |
7,977 | |||||
23,260 |
494,307 |
1,664,668 |
2,182,235 |
2,165,133 |
The changes in the fair values of these debts are recognized in financial income (expense). The gains of R$ 17,102 (R$4,965 as of December 31, 2010) obtained by marking the debts to market are offset by the effects R$ 17,854 (R$7,607 as of December 31, 2010),obtained by marking to market the derivative financial instruments contracted as a hedge against exchange variations (Note 32), resulting in a net loss of R$ 752 (R$2,642 as of December 31, 2010).
Main fund-raising in the period:
Brazilian currency
BNDES – Investment
BNDES – FINEM V Investment (CPFL Paulista) - The subsidiary obtained approval for financing of R$ 291,043 from the BNDES in 2010, part of a FINEM credit line, to be invested in the expansion and modernization of the Electricity System in the second half of 2010 and in 2011. No amounts were released in 2011, up to September 30, and the remaining balance of R$157,971 is scheduled for release by the end of 2011. The interest will be paid quarterly during the grace period and monthly during the amortization term.
FINAME (CPFL Paulista) – The subsidiary received approval for financing of R$ 92,183 from the BNDES in 2009, part of a FINAME credit line, to be invested in acquisition of equipment for the Electricity System in 2010 and 2011. In 2011, up to September 30, the subsidiary received the amount of R$ 14,609 and the outstanding balance of R$ 41,560 is scheduled for release by the end of 2011. The interest will be paid quarterly, and amortized monthly from January 15, 2012.
54
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
FINEM IV (CPFL Piratininga) – The subsidiary received approval for financing of R$ 165,621 from the BNDES in 2010, part of a FINEM credit line, to be used for the implementation of the investment plan for the second half-year of 2010 and for 2011. No amounts were released in 2011, up to September 30, and the outstanding balance of R$ 97,501 is scheduled for release by the end of 2011. The interest will be paid quarterly during the grace period and monthly, together with payments of the principal, during the amortization term.
FINAME (CPFL Piratininga) – The subsidiary received approval for financing of R$ 48,116 from the BNDES in 2009, part of a FINAME credit line, to be invested in acquiring equipment for the Electricity System in 2010 and 2011. The amount of R$ 7,261 was received in 2011, up to September 30, and the outstanding balance of R$ 17,996 is scheduled for release by the end of 2011. The interest will be paid quarterly, and amortized monthly from January 15, 2012.
FINAME (RGE) – The subsidiary received approval for financing of R$ 32,419 from the BNDES in 2009, part of a FINAME credit line, to be invested in acquiring equipment for the Electricity System in 2010 and 2011. The amount of R$ 5,223 was received in 2011, up to September 30, and the outstanding balance of R$ 18,719 is scheduled for release by the end of 2011. The interest will be paid quarterly, and amortized monthly from January 15, 2012.
FINEM I (CPFL Renováveis) – The subsidiary CPFL Renováveis, consolidated in the Company´s financial statements since August 1, 2011 (Notes 1 and 12,4) has financing from BNDES to be invested in 10 indirect subsidiaries, at the average rate long-term interest - TJLP rate plus 1.95% p.a. The total amount of this financing will be R$405,370. Amortization of the principal started in October 2009 and the amortization term for all the agreements is 168 monthly installments. The agreements have a grace period of six months from start-up.
FINEM II (CPFL Renováveis) – The subsidiary CPFL Geração obtained approval for FINEM financing of R$ 574,098 from the BNDES in 2010, to be invested in the indirect subsidiaries Santa Clara I to VI and Eurus VI. The amount of R$ 4,400 was released in 2011, up to September 30, and the outstanding balance of R$ 494,160 is scheduled for release by April 2013. As a result of the corporate restructuring described in Notes 1 and 12,4, this debt has been recorded in the subsidiary CPFL Renováveis since August 1, 2011.
FINEM III / FINAME (CPFL Renováveis) - the subsidiary CPFL Brasil received approval for financing of R$398,547 from the BNDES in 2010, which will be used for the indirect subsidiaries CPFL Bio Formosa, CPFL Bio Pedra, CPFL Bio Ipê and CPFL Bio Buriti. The amount of R$ 229,150 was released in the period and the outstanding balance of R$ 169,397 is scheduled for release by December 2011, except in the case of CPFL Bio Pedra, where the limit date is June 2012. The interest and amortization will be paid monthly, from December 2011, except in the case of CPFL Bio Pedra, where it will be paid from June 2012. As a result of the corporate restructuring described in Notes 1 and 12,4, this debt has been recorded in the subsidiary CPFL Renováveis since August 1, 2011.
Financial Institutions
Banco do Brasil – Working capital (CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa and CPFL Jaguari) – these subsidiaries obtained approval for financing of working capital, of which a total amount of R$267,870 was released in the period (R$ 261,504 net of costs), to cover working capital. The interest will be capitalized monthly and amortized together with the installments of the principal.
Banco Alfa (Foz do Chapecó) - a credit line of R$ R$ 50,000 (Company’s share R$25,500), was obtained from Alfa bank in the period to cover working capital.
55
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Bank of America Merrill Lynch, Banco BNP Paribás, Banco J.P Morgan, Banco Societe Generale, Banco Citibank, Banco Morgan Stanley, Banco HSBC and Banco Sumitomo – Working Capital (CPFL Paulista, CPFL Piratininga, CPFL Geração, CPFL Sul Paulista, CPFL Leste Paulista, CPFL Mococa and CPFL Jaguari) – the subsidiaries received approval for foreign currency financing of working capital, of which an amount of R$ 1,418,155 (R$ 1,338,306 net of issuance costs) was released in the nine-month period ended September 30, 2011, to cover working capital. The interest will be paid half-yearly and the principal will be paid by September 2016.
The maturities of the principal long-term balances of loans and financing, taking into consideration only the amounts recorded at cost, are scheduled as follows:
Maturity |
|
Consolidated |
2012 |
|
172,210 |
2013 |
|
875,167 |
2014 |
|
1,657,517 |
2015 |
|
1,105,105 |
2016 |
|
1,118,069 |
After 2016 |
|
1,685,969 |
Marking to Market |
|
(10,539) |
Total |
|
6,603,497 |
RESTRICTIVE COVENANTS
The Banco do Brasil loan for working capital is subject to certain financial covenants, containing clauses that require the subsidiaries to maintain certain financial ratios within predefined parameters. The required ratio is net indebtedness divided by EBITDA of 3.0 or less.
The foreign currency financing from the Bank of América, BNP Paribás, J.P Morgan, Societe Generale, Citibank, Morgan Stanley, HSBC and Sumitomo banks is subject to certain restrictive conditions, including clauses that require the subsidiaries that obtained these loans to maintain certain financial ratios within predefined parameters.
These ratios are as follows: (i) Net indebtedness divided by EBITDA – maximum of 3.75; and (ii) EBITDA divided by Financial Income (Expense) – minimum of 2.25.
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, 2010.
The Management of the Company and its subsidiaries monitor these indices systematically and constantly to ensure that the contractual conditions are complied with. In the opinion of Management of the Company and its subsidiaries, all restrictive covenants and clauses are being adequately complied with.
( 17 ) DEBENTURES
56
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||||||||||||
September 30, 2011 |
December 31, 2010 | ||||||||||||||||
Interest |
Current |
Noncurrent |
Total |
Interest |
Current |
Noncurrent |
Total | ||||||||||
Parent Company |
|||||||||||||||||
3rd Issue |
Singleseries |
3,768 |
150,000 |
300,000 |
453,768 |
15,529 |
- |
450,000 |
465,529 | ||||||||
CPFL Paulista |
|||||||||||||||||
3rd Issue |
Single series |
26,371 |
213,333 |
426,667 |
666,371 |
5,925 |
213,333 |
426,667 |
645,925 | ||||||||
4th Issue |
Single series |
- |
- |
- |
- |
6,323 |
109,601 |
- |
115,924 | ||||||||
5th Issue |
Single series |
21,283 |
- |
482,258 |
503,541 |
- |
- |
- |
- | ||||||||
47,653 |
213,333 |
908,925 |
1,169,911 |
12,248 |
322,934 |
426,667 |
761,849 | ||||||||||
CPFL Piratininga |
|||||||||||||||||
1st Issue |
1st Series |
- |
- |
- |
- |
10,733 |
200,000 |
- |
210,733 | ||||||||
3rd Issue |
Single series |
16,301 |
- |
259,063 |
275,364 |
7,013 |
- |
258,868 |
265,881 | ||||||||
4th Issue |
Single series |
- |
- |
- |
- |
1,845 |
- |
278,043 |
279,888 | ||||||||
5th Issue |
Single series |
7,036 |
- |
159,358 |
166,394 |
- |
- |
- |
- | ||||||||
23,337 |
- |
418,421 |
441,758 |
19,591 |
200,000 |
536,911 |
756,502 | ||||||||||
RGE |
|||||||||||||||||
2nd Issue |
1st Series |
- |
- |
- |
- |
2,019 |
28,370 |
- |
30,389 | ||||||||
3rd Issue |
1st Series |
4,153 |
33,333 |
66,667 |
104,153 |
939 |
33,333 |
66,667 |
100,939 | ||||||||
2nd Series |
4,367 |
46,667 |
93,333 |
144,367 |
7,721 |
46,667 |
93,333 |
147,721 | |||||||||
3rd Series |
832 |
13,333 |
26,667 |
40,832 |
1,824 |
13,333 |
26,667 |
41,824 | |||||||||
4th Series |
3,083 |
16,667 |
33,333 |
53,083 |
1,335 |
16,667 |
33,333 |
51,335 | |||||||||
5th Series |
3,083 |
16,667 |
33,333 |
53,083 |
1,335 |
16,667 |
33,333 |
51,335 | |||||||||
4th Issue |
Single series |
- |
- |
- |
- |
10,633 |
184,623 |
- |
195,256 | ||||||||
5th Issue |
Single series |
3,078 |
- |
69,669 |
72,747 |
- |
- |
- |
- | ||||||||
18,596 |
126,667 |
323,002 |
468,265 |
25,806 |
339,660 |
253,333 |
618,799 | ||||||||||
CPFL Santa Cruz |
|||||||||||||||||
1st Issue |
Single series |
2,677 |
- |
64,682 |
67,359 |
- |
- |
- |
- | ||||||||
CPFL Leste Paulista |
|||||||||||||||||
1st Issue |
Single series |
- |
- |
- |
- |
1,400 |
23,965 |
- |
25,365 | ||||||||
CPFL Sul Paulista |
|||||||||||||||||
1st Issue |
Single series |
- |
- |
- |
- |
926 |
15,979 |
- |
16,905 | ||||||||
CPFL Jaguari |
|||||||||||||||||
1st Issue |
Single series |
- |
- |
- |
- |
583 |
9,983 |
- |
10,566 | ||||||||
CPFL Brasil |
|||||||||||||||||
1st Issue |
Single series |
- |
- |
- |
- |
9,545 |
164,728 |
- |
174,273 | ||||||||
2nd Issue |
Single series |
58,502 |
- |
1,315,397 |
1,373,899 |
- |
- |
- |
- | ||||||||
58,502 |
- |
1,315,397 |
1,373,899 |
9,545 |
164,728 |
- |
174,273 | ||||||||||
CPFL Geração |
|||||||||||||||||
2nd Issue |
Single series |
- |
- |
- |
- |
24,327 |
424,266 |
- |
448,593 | ||||||||
3rd Issue |
Single series |
16,552 |
- |
263,070 |
279,622 |
7,121 |
- |
263,137 |
270,258 | ||||||||
4th Issue |
Single series |
30,138 |
- |
677,400 |
707,538 |
- |
- |
- |
- | ||||||||
46,690 |
- |
940,470 |
987,160 |
31,448 |
424,266 |
263,137 |
718,851 | ||||||||||
EPASA |
|||||||||||||||||
2nd Issue |
Single series |
14,358 |
103,036 |
33,866 |
151,260 |
- |
- |
204,406 |
204,406 | ||||||||
3rd Issue |
Single series |
1,490 |
1,381 |
64,918 |
67,789 |
- |
- |
- |
- | ||||||||
15,848 |
104,417 |
98,784 |
219,049 |
- |
- |
204,406 |
204,406 | ||||||||||
BAESA |
|||||||||||||||||
1st Series |
356 |
3,139 |
12,557 |
16,052 |
357 |
3,165 |
15,030 |
18,552 | |||||||||
2nd Series |
292 |
2,595 |
10,380 |
13,267 |
294 |
2,569 |
12,207 |
15,070 | |||||||||
648 |
5,734 |
22,937 |
29,319 |
651 |
5,734 |
27,237 |
33,622 | ||||||||||
Enercan |
|||||||||||||||||
1st Series |
309 |
2,708 |
48,822 |
51,839 |
339 |
2,709 |
50,623 |
53,671 | |||||||||
218,028 |
602,859 |
4,441,440 |
5,262,327 |
118,066 |
1,509,958 |
2,212,314 |
3,840,338 |
57
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Issued |
Annual Remuneration |
Annual Effective rate |
Amortization Conditions |
Collateral | |||||||
Parent Company |
|||||||||||
3rd Issue |
Single series |
45,000 |
CDI + 0.45% (1) |
CDI + 0.53% |
3 annual installments from September 2012 |
Unsecured | |||||
CPFL Paulista |
|||||||||||
3rd Issue |
Single series |
64,000 |
104.4% of CDI |
104.4% CDI + 0.05% |
3 annual installments from December 2011 |
CPFL Energia guarantee | |||||
4th Issue |
Single series |
175,000 |
110.3% of CDI |
110.3% CDI + 0.79% |
2 annual installments from July 2010 |
CPFL Energia guarantee | |||||
5th Issue |
Single series |
4,840 |
CDI + 1.30% |
CDI + 1.40% |
1 single installment in June 2016 |
CPFL Energia guarantee | |||||
CPFL Piratininga |
|||||||||||
1st Issue |
1st Series |
40,000 |
104.0% of CDI |
104.0% CDI + 0.16% |
2 annual installments from January 2010 |
CPFL Energia guarantee | |||||
3rd Issue |
Single series |
260 |
107.0% of CDI |
107.0% CDI + 0.67% |
April 1st, 2015 |
CPFL Energia guarantee | |||||
4th Issue |
Single series |
280 |
109.09% of CDI |
109.09% CDI + 0.83% |
December 10, 2013 |
CPFL Energia guarantee | |||||
5th Issue |
Single series |
1,600 |
CDI + 1.30% |
CDI + 1.41% |
June, 1, 2016 |
CPFL Energia guarantee | |||||
RGE |
|||||||||||
2nd Issue |
1st Series |
2,620 |
IGP-M + 9.6% |
IGP-M + 9.73% |
April 1st, 2011 |
Unsecured | |||||
3rd Issue |
1st Series |
1 |
CDI + 0.60% (2) |
CDI + 0.71% |
3 annual installments from December 2011 |
CPFL Energia guarantee | |||||
2nd Series |
1 |
CDI + 0.60% (3) |
CDI + 0.71% |
3 annual installments from December 2011 |
CPFL Energia guarantee | ||||||
3rd Series |
1 |
CDI + 0.60% (4) |
CDI + 0.71% |
3 annual installments from December 2011 |
CPFL Energia guarantee | ||||||
4th Series |
1 |
CDI + 0.60% (5) |
CDI + 0.84% |
3 annual installments from December 2011 |
CPFL Energia guarantee | ||||||
5th Series |
1 |
CDI + 0.60% (5) |
CDI + 0.84% |
3 annual installments from December 2011 |
CPFL Energia guarantee | ||||||
4th Issue |
Single series |
185,000 |
110.30% of CDI |
110.3% CDI + 0.82% |
July 1st, 2011 |
Unsecured | |||||
5th Issue |
Single series |
700 |
CDI + 1.30% |
CDI + 1.43% |
June, 1, 2016 |
Unsecured | |||||
CPFL Santa Cruz |
|||||||||||
1st Issue |
Single series |
650 |
CDI + 1.40% |
CDI + 1.52% |
June 11, 2018 |
CPFL Energia guarantee | |||||
CPFL Leste Paulista |
|||||||||||
1st Issue |
Single series |
2,400 |
111.90% of CDI |
111.9% CDI + 0.65% |
1 installment in July 2011 |
CPFL Energia guarantee | |||||
CPFL Sul Paulista |
|||||||||||
1st Issue |
Single series |
1,600 |
111.00% of CDI |
111% CDI + 0.6% |
1 installment in July 2011 |
CPFL Energia guarantee | |||||
CPFL Jaguari |
|||||||||||
1st Issue |
Single series |
1,000 |
111.90% of CDI |
111.9% CDI + 0.79% |
1 installment in July 2011 |
CPFL Energia guarantee | |||||
CPFL Brasil |
|||||||||||
1st Issue |
Single series |
16,500 |
111% of CDI |
111% CDI + 0.57% |
1 installment in July 2011 |
CPFL Energia guarantee | |||||
2nd Issue |
Single series |
13,200 |
CDI + 1.40% |
CDI + 1.48% |
2 annual instalments from June 2017 |
CPFL Energia guarantee | |||||
CPFL Geração |
|||||||||||
2nd Issue |
Single series |
425,250 |
109.8% of CDI |
109.8% CDI + 0.58% |
1 installment in July 2011 |
CPFL Energia guarantee | |||||
3rd Issue |
Single series |
264 |
107.0% of CDI |
107.0% of CDI + 0.67% |
1 installment in April 2015 |
CPFL Energia guarantee | |||||
4th Issue |
Single series |
6,800 |
100% of CDI + 1.40%p.a. |
CDI + 1.49% |
2 annual instalments from June 2017 |
CPFL Energia guarantee | |||||
EPASA |
|||||||||||
2nd Issue |
Single series |
270 |
111% of CDI |
111% of CDI + 0.49% |
12 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
3rd Issue |
Single series |
130 |
113.5% of CDI |
113.5% of CDI + 0.189% |
48 monthly installments from September 2012 |
CPFL Energia guarantee | |||||
BAESA |
1st Series |
9,000 |
CDI + 0.3% |
CDI + 0.43% |
Quarterly with settlement in August 2016 |
Letters of guarantee | |||||
2nd Series |
8,100 |
CDI + 0.4% |
106% CDI + 0.12% |
Annual with settlement in August 2016 |
Letters of guarantee | ||||||
Enercan |
1st Series |
110 |
100% of CDI + 1.25% p.a |
111.1% of CDI |
Quarterly with settlement in December 2025 |
No guarantees | |||||
The Company and its subsidiaries hold swaps that convert the prefixed component of interest on the operation to interest rate 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 |
||||||||||
The maturities of the long-term balance of debentures are scheduled as follows:
58
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Maturity |
|
Consolidated |
2012 |
|
381,172 |
2013 |
|
515,873 |
2014 |
|
175,943 |
2015 |
|
548,076 |
2016 |
|
730,428 |
After 2016 |
|
2,089,948 |
Total |
|
4,441,440 |
Amounts raised in the period
In June 2011, the subsidiaries CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Brasil and CPFL Geração subscribed and paid up registered, book entry, single series, unsecured debentures not convertible into shares, with an additional fidejussory guarantee. The funds will be used to refinance the debts maturing in 2011, to reinforce working capital and for investment plans. Interest is payable on the debentures half-yearly from the issue date. Details of the issue are provided below:
Subsidiaries |
Number of debentures |
Unit per value |
Total amount raised |
Amount raised, net of issuance costs | ||||
CPFL Paulista |
4,840 |
100 |
484,000 |
482,165 | ||||
CPFL Piratininga |
1,600 |
100 |
160,000 |
159,324 | ||||
RGE |
700 |
100 |
70,000 |
69,651 | ||||
CPFL Santa Cruz |
650 |
100 |
65,000 |
64,670 | ||||
CPFL Geração |
6,800 |
100 |
680,000 |
677,337 | ||||
CPFL Brasil |
13,200 |
100 |
1,320,000 |
1,315,301 | ||||
Epasa |
130 |
100 |
130,000 |
129,524 | ||||
Total |
2,909,000 |
2,897,972 |
RESTRICTIVE COVENANTS
The latest issue of the debentures of the subsidiaries CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Brasil and CPFL Geração is subject to certain restrictive covenants, which include clauses that require the subsidiaries to maintain certain financial ratios within pre-established parameters. The ratios are as follows: (i) Net indebtedness divided by EBITDA of 3.75 or less; and (ii)EBITDA divided by Financial Income (Expense) of 2.25 or more.
The other debentures are also subject to certain restrictive covenants and include clauses that require the Company to maintain certain financial ratios within pre-established parameters. The details of these restrictive covenants are set forth in the December 31, 2010 financial statements.
The Management of the Company and its subsidiaries monitor these ratios systematically and constantly to ensure that the conditions are complied with.
59
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
In the opinion of the managements of the subsidiaries, these restrictive conditions and clauses are being adequately complied with.
( 18 ) EMPLOYEE PENSION PLANS
The subsidiaries sponsor supplementary retirement and pension plans for their employees. The main characteristics of these plans are as follows:
I – CPFL Paulista
The plans currently in effect for the employees of the subsidiary CPFL Paulista, through Fundação CESP, are a Defined Plan (Proportional Paid-Up Supplementary Benefit Plan) up to October 31, 1997, and after that date, a Mixed Benefit Plan for programmed retirement and a Benefit Plan for death and disability.
On amendment 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). Under 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, 2011 is R$ 484,008 (R$ 479,877 as of December 31, 2010). The contract amount differs from the accounting records of the subsidiary, which are 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
The plans currently in effect for the employees of the subsidiary CPFL Piratininga, through Fundação CESP, are a Defined Plan (Proportional Paid-Up Supplementary Benefit Plan) up to March 31, 1998, and after that date, a Benefit Plan and a variable contribution.
In September 1997, through a contractual instrument of adjustment of reserves to be amortized, Eletropaulo Metropolitana Eletricidade 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, 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, 2011 is R$ 133,701 (R$ 133,170 as of December 31, 2010). The contract amount differs from the accounting entries made by the subsidiary, which are 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.
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.
60
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
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.
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.
V – CPFL Geração
The plans currently in force for the employees of subsidiary CPFL Geração are a Proportional Supplementary Defined Benefit (“BSPS”) and a Mixed Benefit Plan, along the same lines as the CPFL Paulista plan.
On amendment 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 obligation, as of September 30, 2011, is R$ 9,653 (R$ 9,571 as of December 31, 2010). 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.
VII – Changes in the defined benefit plans
Changes occurred in the period related to the net actuarial liability according to CPC 33 as shown as follows:
September 30, 2011 | |||||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
Total liability |
RGE |
Total asset | ||||||
Actuarial liabilities /(assets) on December 31, 2010 |
469,623 |
111,574 |
11,452 |
592,649 |
(5,800) |
(5,800) | |||||
Expense recognized in income statement |
(51,226) |
(13,968) |
(1,862) |
(67,055) |
- |
- | |||||
Sponsors' contributions transferred during the period |
(37,366) |
(11,421) |
(679) |
(49,465) |
- |
- | |||||
Actuarial liabilities /(assets) at the end of the period |
381,031 |
86,185 |
8,912 |
476,129 |
(5,800) |
(5,800) | |||||
Other contributions |
13,659 |
238 |
(81) |
13,816 |
- |
- | |||||
Subtotal |
394,691 |
86,423 |
8,831 |
489,944 |
(5,800) |
(5,800) | |||||
Other contributions RGE |
- |
- |
- |
3,016 |
|||||||
Actuarial liabilities /(assets) on September 30, 2011 |
394,691 |
86,423 |
8,831 |
492,960 |
|||||||
Current |
|
|
|
37,967 |
| ||||||
Noncurrent |
|
|
|
454,993 |
(5,800) |
|
Expense and income recognized as operating cost in the actuarial report are shown below:
61
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Nine months 2011 | |||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
Consolidated | |||||
Cost of service |
783 |
2,835 |
102 |
- |
3,720 | ||||
Interest on actuarial obligations |
228,549 |
58,446 |
5,005 |
- |
292,000 | ||||
Expected return on plan assets |
(277,008) |
(73,416) |
(6,528) |
- |
(356,952) | ||||
Amortization of unrecognized actuarial gains |
(3,550) |
(1,833) |
(441) |
- |
(5,824) | ||||
Total income |
(51,226) |
(13,968) |
(1,862) |
- |
(67,055) | ||||
Nine months 2010 | |||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
Consolidated | |||||
Cost of service |
825 |
3,606 |
108 |
864 |
5,403 | ||||
Interest on actuarial obligations |
219,342 |
56,649 |
4,758 |
13,761 |
294,510 | ||||
Expected return on plan assets |
(273,221) |
(69,864) |
(5,763) |
(17,787) |
(366,635) | ||||
Amortization of unrecognized actuarial gains |
(27) |
(939) |
- |
2,283 |
1,317 | ||||
Total income |
(53,081) |
(10,548) |
(897) |
(879) |
(65,405) |
Since the changes in the RGE plan indicate the need to recognize an asset, and the amount to be recognized is restricted to the present value of the economic rewards available at the time, recognition in 2011 will require analysis of the possibility of recovery of the asset at the end of the year.
The principal assumptions considered in the actuarial calculations, based on the actuarial report prepared for December 31, 2010 and 2009 were:
CPFL Paulista, CPFL Piratininga and CPFL Geração |
RGE | ||||||
December 31, 2010 (1) |
December 31, 2009 (1) |
December 31, 2010 (1) |
December 31, 2009 (1) | ||||
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: |
(*) |
(**) |
10.24% p.a. |
11.28% 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 |
MERCER TABLE |
Light-Average | |||
Expected turnover rate: |
0.30 / (Service time + 1) |
0.30 / (Service time + 1) |
0.30 / (Service time + 1) |
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 |
100% when a beneficiary of the Plan first becomes eligible |
||||
(1) Refers to the date of issuance of the actuarial report |
|||||||
(*) CPFL Paulista and CPFL Geração 12.73% p.a, and CPFL Piratininga 12.71% p.a. |
|||||||
(**) CPFL Paulista and CPFL Geração 14.36% p.a. and CPFL Piratininga 14.05% a.a. |
( 19 ) REGULATORY CHARGES
62
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
|
Consolidated | ||
|
September 30, 2011 |
December 31, 2010 | |
Fee for the Use of Water Resources |
7,888 |
|
4,452 |
Global Reverse Fund - RGR |
26,580 |
|
16,484 |
ANEEL Inspection Fee |
2,286 |
|
2,285 |
Fuel Consumption Account - CCC |
62,602 |
|
58,288 |
Energy Development Account - CDE |
45,709 |
|
42,033 |
Total |
145,065 |
|
123,541 |
( 20 ) TAXES AND CONTRIBUTIONS PAYABLE
Consolidated | |||
September 30, 2011 |
December 31, 2010 | ||
Current |
|||
ICMS (State VAT) |
265,761 |
247,891 | |
PIS (Tax on Revenue) |
13,621 |
13,563 | |
COFINS (Tax on Revenue) |
69,115 |
63,668 | |
IRPJ (Corporate Income Tax) |
96,071 |
86,853 | |
CSLL (Social Contribution Tax) |
22,303 |
22,280 | |
Other |
21,564 |
20,993 | |
Total |
488,434 |
455,248 | |
Noncurrent |
|||
COFINS (Tax on Revenue) |
377 |
960 | |
Other |
248 |
- | |
Total |
625 |
960 |
( 21 ) RESERVE FOR CONTINGENCIES AND ESCROW DEPOSITS
63
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||
September 30, 2011 |
December 31, 2010 | ||||||
Reserve for contingencies |
Escrow Deposits |
Reserve for contingencies |
Escrow Deposits | ||||
Labor |
|||||||
Various |
46,315 |
183,546 |
39,136 |
147,056 | |||
Civil |
|||||||
General Damages |
12,204 |
87,084 |
11,126 |
75,033 | |||
Tariff Increase |
8,818 |
4,342 |
10,813 |
9,200 | |||
Other |
3,456 |
449 |
5,904 |
1,516 | |||
24,477 |
91,875 |
27,843 |
85,750 | ||||
Tax |
|||||||
FINSOCIAL |
18,886 |
53,840 |
18,714 |
53,322 | |||
Income Tax |
80,221 |
646,908 |
73,401 |
539,601 | |||
Interest on Shareholders’ Equity - PIS and COFINS |
11,378 |
11,378 |
10,666 |
10,666 | |||
PIS and COFINS - Non-Cumulative Method |
90,264 |
- |
87,672 |
- | |||
Other |
39,450 |
63,074 |
29,059 |
39,143 | |||
240,199 |
775,201 |
219,513 |
642,732 | ||||
Other |
|||||||
Various |
3,077 |
28,777 |
4,773 |
15,148 | |||
Total |
314,068 |
1,079,399 |
291,265 |
890,685 |
The change in the balances related to reserves for contingencies and escrow deposits are shown below:
Consolidated | |||||||||||||
December 31, 2010 |
Addition |
Reversal |
Payment |
Monetary Restatement |
corporate restructuring |
September 30, 2011 | |||||||
Labor |
39,136 |
16,046 |
(3,217) |
(5,909) |
- |
260 |
46,315 | ||||||
Civil |
27,843 |
10,433 |
(6,207) |
(7,592) |
- |
- |
24,477 | ||||||
Tax |
219,513 |
16,434 |
(269) |
- |
4,521 |
- |
240,199 | ||||||
Other |
4,773 |
- |
- |
(1,743) |
47 |
- |
3,077 | ||||||
Reserve for Contingencies |
291,265 |
42,913 |
(9,693) |
(15,244) |
4,568 |
260 |
314,068 | ||||||
Escrow Deposits |
890,685 |
154,260 |
(6,588) |
(3,508) |
44,538 |
12 |
1,079,399 |
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, 2010.
Possible Losses - The Company and its subsidiaries are parties to other 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, 2011, the claims relating to possible losses were as follows: (i) R$ 341,837 for labor suits (R$ 341,608 as of December 31, 2010); (ii) R$ 559,453 for civil suits, mainly for suits for personal injuries, environmental damages and tariff increases (R$ 604,603 as of December 31, 2010); and (iii) R$ 925,973 in respect of tax suits, relating basically to Income Tax, ICMS, INSS, FINSOCIAL and PIS and COFINS (R$ 823,872 as of December 31, 2010).
Escrow deposits – Income taxes: Of the total amount of R$ 646,908, R$ 570,207 (R$483,355 at December 31, 2010) refers to the dispute on the deductibility for federal tax purposes of expense recognized in 1997 in respect of the welfare deficit of the employees’ pension plan of subsidiary CPFL Paulista in relation to Fundação CESP, due to the renegotiation and renewal of debt in that year. After consulting the Brazilian Federal Revenue Office, the subsidiary , obtained a favorable reply in Note MF/SRF/COSIT/GAB nº 157, of April 9, 1998, and took advantage of the tax deductibility of the expense, thereby generating a tax loss for that year. Consequently, the subsidiary was assessed by the tax inspectors and legal decisions were taken, as a condition for continuing the discussions on two legal suits, tthat required escrow deposits in guarantee. In 2011, the subsidiary added an amount of R$ 53,933 to the deposit. The deductibility also resulted in other assessments and in order to be able to continue the discussions, the subsidiary also offered collateral in the form of bank guarantees amounting to R$ 264,934. Based on the updated opinion of the legal counsel in charge of the case, the risk of loss continues to be classified as remote.
64
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
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 a significant impact on future earnings.
( 22 ) PUBLIC UTILITIES
Consolidated | ||||||||
Companies |
September 30, 2011 |
December 31, 2010 |
Number of remaining installments |
Interest rates | ||||
CERAN |
74,426 |
71,987 |
294 |
IGP-M + 9.6% p.a. | ||||
ENERCAN |
10,661 |
9,884 |
297 |
IGP-M + 8% p.a. | ||||
BAESA |
57,076 |
52,865 |
285 |
IGP-M + 8% p.a. | ||||
Foz do Chapecó |
322,350 |
312,183 |
304 |
IGP-M / IPC-A + 5.3% p.a. | ||||
TOTAL |
464,513 |
446,919 |
||||||
Current |
27,212 |
17,287 |
||||||
Noncurrent |
437,301 |
429,632 |
( 23 ) OTHER ACCOUNTS PAYABLE
Consolidated | |||||||
Current |
Noncurrent | ||||||
September 30, 2011 |
December 31, 2010 |
September 30, 2011 |
December 31, 2010 | ||||
Consumers and Concessionaires |
70,293 |
63,635 |
- |
- | |||
Energy Efficiency Program - PEE |
107,579 |
63,698 |
4,384 |
32,039 | |||
Research & Development - P&D |
138,917 |
110,418 |
22,012 |
29,680 | |||
National Scientific and Technological Development Fund - FNDCT |
4,146 |
3,077 |
- |
- | |||
Energy Research Company - EPE |
1,623 |
1,206 |
- |
- | |||
Fund for Reversal |
- |
- |
17,750 |
17,750 | |||
Advances |
25,857 |
11,030 |
3,801 |
7,418 | |||
Provision for environmental expenditure |
10,504 |
11,685 |
73,213 |
2,455 | |||
Payroll |
14,871 |
6,722 |
- |
- | |||
Profit sharing |
22,654 |
36,296 |
- |
- | |||
Collections agreement |
70,018 |
56,260 |
- |
- | |||
Founder shares |
1,356 |
1,674 |
- |
- | |||
Guarantees |
- |
- |
35,867 |
45,831 | |||
Other |
45,391 |
45,169 |
7,072 |
5,950 | |||
Total |
513,208 |
410,869 |
164,100 |
141,124 |
65
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
( 24 ) SHAREHOLDERS’ EQUITY
The shareholders' participations in the Company's equity as of September 30, 2011 and December 31, 2010 are distributed as follows:
Number of shares | ||||||||
September 30, 2011 |
December 31, 2010 | |||||||
Shareholders |
Common Shares |
Interest % |
Common Shares |
Interest % | ||||
VBC Energia S.A. |
245,897,454 |
25.55 |
122,948,720 |
25.62 | ||||
BB Carteira Livre I FIA |
298,467,458 |
31.02 |
149,233,727 |
31.10 | ||||
Energia São Paulo FIP |
102,756,048 |
10.68 |
- |
- | ||||
Bonaire Participações S.A. |
18,670,990 |
1.94 |
60,713,511 |
12.65 | ||||
BNDES Participações S.A. |
81,053,460 |
8.42 |
40,526,739 |
8.44 | ||||
Brumado Holdings S.A. |
34,502,100 |
3.59 |
17,251,048 |
3.59 | ||||
Antares Holding Ltda. |
16,039,720 |
1.67 |
8,019,852 |
1.67 | ||||
Board of Directors |
212 |
0.00 |
112 |
- | ||||
Executive officers |
49,980 |
0.01 |
2,824 |
- | ||||
Other |
164,836,838 |
17.13 |
82,440,597 |
16.93 | ||||
Total |
962,274,260 |
100.00 |
481,137,130 |
100.00 |
24.1 Share reverse split and split
As disclosed in the Relevant Facts of March 28 and April 28, 2011 and notice to the Shareholders of May 10, 2011, the common shares in the Company were grouped, at a proportion of 10 (ten) to 1 (one), with simultaneous splitting of each grouped share, at a proportion of 1 (one) to 20 (twenty), allowing a period of 60 days for the shareholders to adjust their stock positions on the BM&FBovespa S.A.
The resulting shares were allocated and distributed to the holders of the shares on July 4, 2011.
The share grouping and split did not involve changes to financial resources.
The fractions of shares of the shareholders who opted not to adjust their positions were identified, separated and grouped by whole numbers, and sold by auction on the BM&FBovespa.
24.2 Corporate restructuring of the shareholder Bonaire Participações S.A.
In accordance with a Disclosure to the Market dated August 18, 2011, Energia São Paulo Fundo de Investimento em Participações (“Fund”) advised that, as a result of a capital decrease of the company Bonaire Participações S.A., by delivery of assets of its majority shareholder, as from August 15, 2011, the Fund now holds 102,756,048 common shares issued by the Company. The Fund`s interest represents 10.68%.
The Fund also informed that: (i), together with Bonaire, of which it is the majority shareholder, it holds 121,427,038 common and total shares issued by the Company and that this participation represents 12.62% of the Company`s shares; and (ii) of the 102,756,048 shares held by the Fund, 90,484,600 shares are tied to the Company`s Shareholders’ Agreement.
Accordingly, Bonaire and the Fund now jointly exercise the rights and obligations arising therefrom, and should accordingly be regarded as a single shareholder of the Company.
24.3 – Dividends
The AGM/EGM held on April 28, 2011 approved the allocation of net income for 2010, by declaring a dividend of R$ 1,260,469, of which R$774,429 corresponds to the interim dividend declared in June 2010, and R$484,040 to an additional dividend.
66
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Additionally, in accordance with the Bylaws and based on the income for the first half-year of 2011, Management approved on August 10, 2011 the declaration of an interim dividend of R$ 747,709, attributing the amount of R$ 0.777023176 to each share.
In 2011, up to September 30, the Company paid dividends of R$1,229,401.
24.4 – Revaluation reserve – business combination
As mentioned in Note 12.4, the amount of R$ 327,134 was recognized in the revaluation reserve as a result of the business combination of CPFL Renováveis.
24.5 – Revaluation reserve – deemed cost
Due to the change in the participation of the assets transferred to CPFL Renováveis, CPFL Geração realized, proportionally, the amount of R$ 31,864 of the revaluation reserve previously recognized as deemed cost, set against retained earnings. Similarly, the subsidiary CPFL Brasil recorded a deemed cost revaluation reserve of R$ 6,136, in proportion to its interest in CPFL Renováveis, set against retained earnings.
67
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
( 25 ) EARNINGS PER SHARE
Basic earnings per share
Calculation of the basic earnings per share at September 30, 2011 was based on the profit of R$1,116,428 for the period (R$ 1,182,176 at September 30, 2010) attributable to CPFL Energia and the average weighted number of common shares outstanding during the period September 30, 2011, as shown below:
September 30, 2011 |
|
September 30, 2010 | ||
Net income attributable to the Parent Company |
1,116,428 |
|
1,182,176 | |
|
| |||
Outstanding shares on January 1 |
481,137,130 |
479,910,938 | ||
Issuance of shares on April 26, 2010 |
- |
1,226,192 | ||
Share reverse split and split, without changes to financial resources in June 2011 |
481,137,130 |
- | ||
Outstanding shares on September 30, 2011 |
962,274,260 |
481,137,130 | ||
Weighted average number of common shares held by Shareholders |
962,274,260 |
|
961,232,221 | |
|
| |||
Basic earnings per share |
1.16 |
|
1.23 | |
|
In accordance with CPC 41 Income per Share, calculation of the average weighted number of shares for 2010 took into account the share grouping and split that occurred in 2011 (note 24), as there was no change in financial resources.
Diluted earnings per share
In the nine months ended September 30, 2011 and 2010, the Company held no notes convertible into shares to be taken into account in calculating the earnings per share.
( 26 ) GROSS SALES AND SERVICES INCOME
68
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||
2011 |
2010 | ||||||
Revenue from Eletric Energy Operations |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Consumer class |
|||||||
Residential |
1,542,989 |
4,428,415 |
1,341,914 |
4,047,322 | |||
Industrial |
1,096,644 |
3,075,734 |
1,058,882 |
3,107,336 | |||
Commercial |
760,974 |
2,276,814 |
663,447 |
2,077,040 | |||
Rural |
123,316 |
328,478 |
117,130 |
329,254 | |||
Public Administration |
108,119 |
311,462 |
95,431 |
284,437 | |||
Public Lighting |
86,155 |
245,204 |
76,959 |
226,762 | |||
Public Services |
134,417 |
379,396 |
119,987 |
351,734 | |||
Billed |
3,852,614 |
11,045,504 |
3,473,750 |
10,423,885 | |||
Unbilled (Net) |
(28,480) |
(29,889) |
8,876 |
(2,247) | |||
Emergency Charges - ECE/EAEE |
40 |
37 |
- |
3 | |||
Reclassification to Network Usage Charge - TUSD - Captive Consumers |
(1,830,053) |
(5,284,654) |
(1,406,042) |
(4,427,684) | |||
Electricity sales to final consumers |
1,994,121 |
5,730,999 |
2,076,584 |
5,993,957 | |||
Other Concessionaires and Licensees |
318,246 |
847,855 |
293,305 |
773,034 | |||
Current Electric Energy |
21,517 |
66,711 |
55,075 |
72,853 | |||
Electricity sales to wholesaler |
339,763 |
914,567 |
348,380 |
845,887 | |||
Revenue due to Network Usage Charge - TUSD - Captive Consumers |
1,830,053 |
5,284,654 |
1,406,042 |
4,427,684 | |||
Revenue due to Network Usage Charge - TUSD - Free Consumers |
325,305 |
988,077 |
305,745 |
807,925 | |||
Revenue from construction of concession infrastructure |
314,135 |
778,153 |
295,403 |
698,867 | |||
Other Revenue and Income |
54,709 |
186,891 |
62,330 |
190,981 | |||
Other operating revenues |
2,524,203 |
7,237,774 |
2,069,520 |
6,125,457 | |||
Total gross revenues |
4,858,087 |
13,883,340 |
4,494,484 |
12,965,301 | |||
Deductions from operating revenues |
|||||||
ICMS |
(764,479) |
(2,201,410) |
(683,792) |
(2,034,144) | |||
PIS |
(72,076) |
(209,905) |
(65,506) |
(198,882) | |||
COFINS |
(332,107) |
(967,041) |
(302,523) |
(916,917) | |||
ISS |
(1,457) |
(3,797) |
(919) |
(2,436) | |||
Global Reversal Reserve - RGR |
(21,759) |
(47,686) |
(17,844) |
(53,444) | |||
Fuel Consumption Account - CCC |
(187,806) |
(544,173) |
(159,958) |
(424,563) | |||
Energy Development Account - CDE |
(131,211) |
(393,633) |
(117,659) |
(352,975) | |||
Research and Development and Energy Efficiency Programs |
(38,703) |
(107,093) |
(34,402) |
(91,769) | |||
PROINFA |
(16,225) |
(48,695) |
(13,006) |
(45,009) | |||
Emergency Charges - ECE/EAEE |
(40) |
(38) |
- |
(3) | |||
IPI |
- |
(6) |
- |
- | |||
(1,565,864) |
(4,523,475) |
(1,395,609) |
(4,120,142) | ||||
Net revenue |
3,292,224 |
9,359,864 |
3,098,875 |
8,845,159 | |||
Consolidated | ||||||||
2011 |
2010 | |||||||
Revenue from Eletric Energy Operations (in GWh) (*) |
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||
Consumer class |
||||||||
Residential |
3,449 |
10,164 |
3,226 |
9,697 | ||||
Industrial |
3,799 |
11,011 |
3,911 |
11,602 | ||||
Commercial |
1,945 |
6,032 |
1,808 |
5,719 | ||||
Rural |
547 |
1,449 |
576 |
1,617 | ||||
Public Administration |
287 |
857 |
272 |
822 | ||||
Public Lighting |
385 |
1,120 |
364 |
1,079 | ||||
Public Services |
466 |
1,357 |
446 |
1,300 | ||||
Billed |
10,877 |
31,990 |
10,603 |
31,836 | ||||
Own comsuption |
8 |
25 |
8 |
25 | ||||
Electricity sales to final consumers |
10,885 |
32,015 |
10,611 |
31,861 | ||||
Other Concessionaires, permissionaires and licensees |
2,505 |
7,188 |
2,568 |
7,489 | ||||
Current Electric Energy |
2,324 |
3,448 |
795 |
1,762 | ||||
Electricity sales to wholesaler |
4,829 |
10,637 |
3,363 |
9,251 | ||||
(*) Information not revised by the independent auditors. |
69
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | ||||
N. of consumers(*) |
September 30, 2011 |
September 30, 2010 | ||
Consumer class |
||||
Residential |
6,030,418 |
5,828,837 | ||
Industrial |
60,938 |
78,480 | ||
Commercial |
501,606 |
492,484 | ||
Rural |
241,351 |
236,542 | ||
Public Administration |
46,458 |
44,926 | ||
Public Lighting |
8,461 |
8,015 | ||
Public Services |
7,351 |
7,212 | ||
Total |
6,896,583 |
6,696,496 | ||
(*) Information not revised by the independent auditors. |
The details of distributors tariff adjustments are as follows:
2011 |
2010 | |||||||||
Company |
Month |
Total adjustment |
Effect perceived by consumers (*) |
Total adjustment |
Effect perceived by consumers (*) | |||||
CPFL Paulista |
April |
7.38% |
7.23% |
2.7% |
-5.69% | |||||
CPFL Piratininga |
October |
(**) |
(**) |
10.11% |
5.66% | |||||
RGE |
June |
17.21% |
6.74% |
12.37% |
3.96% | |||||
CPFL Santa Cruz |
February |
23.61% |
15.38% |
10.09% |
-2.53% | |||||
CPFL Leste Paulista |
February |
7.76% |
16.44% |
-13.21% |
-8.47% | |||||
CPFL Jaguari |
February |
5.47% |
6.62% |
5.16% |
3.67% | |||||
CPFL Sul Paulista |
February |
8.02% |
7.11% |
5.66% |
4.94% | |||||
CPFL Mococa |
February |
9.50% |
9.77% |
3.98% |
3.24% | |||||
(*) Represents the average effect perceived by consumers, as a result of the elimination from the tariff base of financial components added in the annual adjustment for the previous year. | ||||||||||
(**) The respective tariff increases have not yet occurred (Note 34). |
( 27 ) COST OF ELECTRIC ENERGY
Consolidated | |||||||
2011 |
2010 | ||||||
Electricity Purchased for Resale |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Itaipu Binacional |
241,578 |
711,750 |
249,584 |
765,665 | |||
Current Electric Energy |
29,520 |
114,727 |
45,297 |
62,049 | |||
PROINFA |
42,353 |
127,092 |
44,507 |
139,092 | |||
Energy purchased of bilateral contracts and through action in the regulated market |
1,090,495 |
3,018,670 |
1,168,211 |
3,139,271 | |||
Credit of PIS and COFINS |
(125,140) |
(363,176) |
(128,251) |
(382,960) | |||
Subtotal |
1,278,806 |
3,609,063 |
1,379,348 |
3,723,117 | |||
Electricity Network Usage Charge |
|||||||
Basic Network Charges |
272,985 |
757,470 |
222,960 |
679,935 | |||
Transmission from Itaipu |
23,396 |
66,832 |
19,838 |
62,645 | |||
Connection Charges |
18,985 |
52,814 |
18,881 |
44,319 | |||
Charges of Use of the Distribution System |
10,770 |
29,603 |
6,767 |
20,420 | |||
System Service Charges - ESS |
52,972 |
141,623 |
34,839 |
113,615 | |||
Reserve Energy charges |
12,416 |
18,396 |
12,385 |
28,902 | |||
Credit of PIS and COFINS |
(34,714) |
(97,074) |
(29,240) |
(90,393) | |||
Subtotal |
356,810 |
969,665 |
286,430 |
859,443 | |||
Total |
1,635,616 |
4,578,729 |
1,665,778 |
4,582,560 |
70
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||
2011 |
2010 | ||||||
Electricity Purchased for Resale (in GWh) (*) |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Itaipu Binacional |
2,743 |
8,125 |
2,734 |
8,087 | |||
Current Electric Energy |
1,066 |
3,504 |
844 |
2,364 | |||
PROINFA |
237 |
587 |
154 |
649 | |||
Energy purchased of bilateral contracts and through action in the regulated market |
8,762 |
25,235 |
9,379 |
27,454 | |||
Total |
12,807 |
37,451 |
13,111 |
38,554 | |||
(*) Information not revised by the independent auditors. |
( 28 ) OPERATING EXPENSES
Parent Company | |||||||||||
3rd quarter | |||||||||||
General |
Other |
Total | |||||||||
2011 |
2010 |
2011 |
2010 |
2011 |
2010 | ||||||
Personnel |
2,161 |
996 |
- |
- |
2,161 |
996 | |||||
Materials |
15 |
7 |
- |
- |
15 |
7 | |||||
Outside Services |
2,567 |
4,314 |
- |
- |
2,567 |
4,314 | |||||
Depreciation and Amortization |
45 |
39 |
- |
- |
45 |
39 | |||||
Other: |
1,027 |
983 |
36,297 |
36,255 |
37,324 |
37,238 | |||||
Leases and Rentals |
29 |
15 |
- |
- |
29 |
15 | |||||
Publicity and Advertising |
608 |
351 |
- |
- |
608 |
351 | |||||
Legal, Judicial and Indemnities |
102 |
19 |
- |
- |
102 |
19 | |||||
Donations, Contributions and Subsidies |
121 |
- |
- |
- |
121 |
- | |||||
Intangible of concession amortization |
- |
- |
36,297 |
36,255 |
36,297 |
36,255 | |||||
Other |
168 |
598 |
- |
- |
168 |
598 | |||||
Total |
5,814 |
6,339 |
36,297 |
36,255 |
42,110 |
42,594 | |||||
Parent Company | |||||||||||
Nine months | |||||||||||
General |
Other |
Total | |||||||||
2011 |
2010 |
2011 |
2010 |
2011 |
2010 | ||||||
Personnel |
4,132 |
2,837 |
- |
- |
4,132 |
2,837 | |||||
Materials |
46 |
46 |
- |
- |
46 |
46 | |||||
Outside Services |
13,970 |
10,894 |
- |
- |
13,970 |
10,894 | |||||
Depreciation and Amortization |
134 |
105 |
- |
- |
134 |
105 | |||||
Other: |
3,673 |
3,479 |
108,892 |
108,495 |
112,564 |
111,974 | |||||
Leases and Rentals |
74 |
62 |
- |
- |
74 |
62 | |||||
Publicity and Advertising |
2,369 |
852 |
- |
- |
2,369 |
852 | |||||
Legal, Judicial and Indemnities |
454 |
380 |
- |
- |
454 |
380 | |||||
Donations, Contributions and Subsidies |
344 |
- |
- |
- |
344 |
- | |||||
Intangible of concession amortization |
- |
- |
108,892 |
108,495 |
108,892 |
108,495 | |||||
Other |
432 |
2,185 |
- |
- |
432 |
2,185 | |||||
Total |
21,954 |
17,361 |
108,892 |
108,495 |
130,846 |
125,856 |
Consolidated | |||||||||||||||||||||||
3rd quarter | |||||||||||||||||||||||
Services Rendered to Third Parties |
Operating Expenses |
Total | |||||||||||||||||||||
Operating costs |
Sales |
General |
Other |
||||||||||||||||||||
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 | ||||||||||||
Personnel |
95,207 |
87,585 |
(5) |
71 |
25,508 |
20,682 |
48,554 |
39,399 |
- |
- |
169,265 |
147,737 | |||||||||||
Employee Pension Plans |
(22,352) |
(21,800) |
- |
- |
- |
- |
- |
- |
- |
- |
(22,352) |
(21,800) | |||||||||||
Materials |
18,857 |
16,797 |
489 |
858 |
1,872 |
667 |
6,647 |
3,090 |
- |
- |
27,864 |
21,412 | |||||||||||
Outside Services |
34,351 |
48,680 |
286 |
1,095 |
24,183 |
20,033 |
51,918 |
41,446 |
- |
- |
110,738 |
111,254 | |||||||||||
Depreciation and Amortization |
131,806 |
112,014 |
- |
164 |
8,237 |
2,271 |
9,859 |
6,352 |
- |
181 |
149,902 |
120,982 | |||||||||||
Costs related to infrastructure construction |
- |
- |
314,135 |
295,403 |
- |
- |
- |
- |
- |
- |
314,135 |
295,403 | |||||||||||
Other: |
24,289 |
12,999 |
(5) |
3 |
24,712 |
23,920 |
18,650 |
43,025 |
56,939 |
56,163 |
124,585 |
136,110 | |||||||||||
Collection charges |
- |
- |
- |
- |
9,644 |
12,050 |
- |
- |
- |
- |
9,644 |
12,050 | |||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
14,522 |
7,555 |
- |
- |
- |
- |
14,522 |
7,555 | |||||||||||
Leases and Rentals |
8,963 |
3,591 |
- |
- |
30 |
6 |
(2,473) |
2,261 |
- |
- |
6,520 |
5,858 | |||||||||||
Publicity and Advertising |
286 |
- |
- |
- |
124 |
- |
1,945 |
8,236 |
- |
- |
2,355 |
8,236 | |||||||||||
Legal, Judicial and Indemnities |
(86) |
- |
- |
- |
- |
- |
11,347 |
26,174 |
- |
- |
11,262 |
26,174 | |||||||||||
Donations, Contributions and Subsidies |
65 |
- |
- |
- |
- |
- |
2,743 |
1,645 |
- |
- |
2,808 |
1,645 | |||||||||||
Inspection fee |
- |
- |
- |
- |
- |
- |
- |
- |
7,178 |
6,396 |
7,178 |
6,396 | |||||||||||
Free energy adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,127 |
- |
1,127 | |||||||||||
Intangible of concession amortization |
- |
- |
- |
- |
- |
- |
- |
- |
46,148 |
46,511 |
46,148 |
46,511 | |||||||||||
Other |
15,060 |
9,408 |
(5) |
3 |
392 |
4,309 |
5,087 |
4,709 |
3,614 |
2,129 |
24,148 |
20,558 | |||||||||||
Total |
282,157 |
256,275 |
314,901 |
297,594 |
84,513 |
67,573 |
135,628 |
133,312 |
56,939 |
56,344 |
874,137 |
811,098 |
71
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||||||||||||||||||
Nine months | |||||||||||||||||||||||
Services Rendered to Third Parties |
Operating Expenses |
Total | |||||||||||||||||||||
Operating costs |
Sales |
General |
Other |
||||||||||||||||||||
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
2011 |
2010 | ||||||||||||
Personnel |
323,372 |
261,260 |
(4) |
304 |
76,229 |
58,956 |
127,468 |
120,575 |
- |
- |
527,064 |
441,095 | |||||||||||
Employee Pension Plans |
(67,056) |
(65,405) |
- |
- |
- |
- |
- |
- |
- |
- |
(67,056) |
(65,405) | |||||||||||
Materials |
47,679 |
45,952 |
895 |
1,477 |
3,770 |
2,252 |
17,057 |
7,945 |
- |
- |
69,400 |
57,626 | |||||||||||
Outside Services |
114,998 |
131,697 |
491 |
2,349 |
76,845 |
58,353 |
175,425 |
127,824 |
- |
- |
367,760 |
320,223 | |||||||||||
Depreciation and Amortization |
395,343 |
333,821 |
- |
494 |
24,692 |
6,688 |
25,982 |
17,507 |
- |
541 |
446,017 |
359,051 | |||||||||||
Costs related to infrastructure construction |
- |
- |
778,153 |
698,867 |
- |
- |
- |
- |
- |
- |
778,153 |
698,867 | |||||||||||
Other: |
51,190 |
44,272 |
(5) |
3 |
81,179 |
85,182 |
85,789 |
49,669 |
168,128 |
164,234 |
386,281 |
343,360 | |||||||||||
Collection charges |
- |
- |
- |
- |
27,822 |
35,090 |
- |
- |
- |
- |
27,822 |
35,090 | |||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
51,940 |
37,410 |
- |
- |
- |
- |
51,940 |
37,410 | |||||||||||
Leases and Rentals |
11,840 |
11,501 |
- |
- |
113 |
6 |
6,662 |
6,397 |
- |
- |
18,615 |
17,904 | |||||||||||
Publicity and Advertising |
623 |
- |
- |
- |
209 |
- |
7,993 |
10,951 |
- |
- |
8,825 |
10,951 | |||||||||||
Legal, Judicial and Indemnities |
53 |
- |
- |
- |
- |
- |
44,107 |
7,726 |
- |
- |
44,160 |
7,726 | |||||||||||
Donations, Contributions and Subsidies |
75 |
- |
- |
- |
- |
- |
7,773 |
4,924 |
- |
- |
7,848 |
4,924 | |||||||||||
Inspection fee |
- |
- |
- |
- |
- |
- |
- |
- |
21,305 |
18,575 |
21,305 |
18,575 | |||||||||||
Free energy adjustment |
- |
- |
- |
- |
- |
- |
- |
- |
- |
3,654 |
- |
3,654 | |||||||||||
Intangible of concession amortization |
- |
- |
- |
- |
- |
- |
- |
- |
138,174 |
139,240 |
138,174 |
139,240 | |||||||||||
Other |
38,599 |
32,771 |
(5) |
3 |
1,094 |
12,676 |
19,254 |
19,671 |
8,649 |
2,765 |
67,591 |
67,886 | |||||||||||
Total |
865,526 |
751,597 |
779,529 |
703,494 |
262,714 |
211,431 |
431,722 |
323,520 |
168,128 |
164,775 |
2,507,619 |
2,154,817 |
( 29 ) FINANCIAL INCOME AND EXPENSES
Parent Company | |||||||
2011 |
2010 | ||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||
Financial Income |
|||||||
Income from Financial Investments |
20,946 |
31,898 |
6,626 |
24,951 | |||
Restatement of Escrow Deposits |
283 |
712 |
240 |
633 | |||
PIS and COFINS on Capital Interest |
- |
(9,394) |
- |
(9,117) | |||
Other |
2,501 |
7,538 |
14,206 |
27,083 | |||
Total |
23,730 |
30,754 |
21,072 |
43,550 | |||
Financial Expense |
|||||||
Debt Charges |
(14,568) |
(40,701) |
(12,599) |
(33,187) | |||
Monetary and Exchange Variations |
300 |
(262) |
224 |
619 | |||
Other |
(148) |
(235) |
(8,619) |
(23,447) | |||
Total |
(14,417) |
(41,198) |
(20,994) |
(56,015) | |||
Net financial income (expense) |
9,313 |
(10,444) |
78 |
(12,465) |
72
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Consolidated | |||||||
2011 |
2010 | ||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||
Financial Income |
|||||||
Income from Financial Investments |
140,856 |
233,087 |
45,509 |
110,887 | |||
Arrears of interest and fines |
37,830 |
120,295 |
33,132 |
98,954 | |||
Restatement of tax credits |
943 |
3,785 |
1,538 |
2,894 | |||
Restatement of Escrow Deposits |
16,067 |
44,538 |
12,068 |
32,447 | |||
Monetary and Exchange Variations |
14,537 |
43,351 |
8,676 |
24,758 | |||
Discount on purchase of ICMS credit |
3,233 |
9,487 |
1,820 |
5,389 | |||
PIS and COFINS on Capital Interest |
- |
(9,394) |
- |
(9,117) | |||
Other |
6,680 |
26,465 |
27,082 |
65,905 | |||
Total |
220,146 |
471,584 |
129,825 |
332,117 | |||
Financial Expense |
|||||||
Debt Charges |
(333,214) |
(804,913) |
(196,993) |
(535,131) | |||
Monetary and Exchange Variations |
(70,813) |
(106,235) |
(19,344) |
(67,025) | |||
(-) Capitalized borrowing costs |
7,841 |
27,162 |
37,942 |
109,599 | |||
Public utilities |
(9,076) |
(42,993) |
(4,858) |
(15,038) | |||
Other |
(20,086) |
(62,963) |
(19,672) |
(63,753) | |||
Total |
(425,349) |
(989,942) |
(202,925) |
(571,348) | |||
Net financial income (expense) |
(205,203) |
(518,358) |
(73,100) |
(239,231) |
Interest is capitalized at a rate of 9.95% p.a. for qualified intangible assets and property, plant and equipment in accordance with CPC 20. In 2010, R$ 76,218 of the total amount, (R$ 27,834 in the 3rd quarter of 2010) refers to energy generation projects in the process of development, especially Foz do Chapecó, EPASA and CPFL Bioenergia.
( 30 ) SEGMENT INFORMATION
The Company’s operating segments are separated by business segment (electric energy distribution, generation and commercialization), based on the internal financial information and management structure.
Profit or loss, assets and liabilities per segment include items directly attributable to the segment, as well as those that can be allocated on a reasonable basis, if applicable. Prices charged between the segments are based on similar market transactions. Note 1 shows the subsidiaries in accordance with their areas of operation and provides further information about each subsidiary and its business area.
The segregated information by segment of activity is shown below, in accordance with the criteria established by Company management:
73
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
|
Distribution |
Generation |
Commercialization |
Other (*) |
Elimination |
Total | |||||
Nine months 2011 |
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
8,132,457 |
|
474,505 |
|
752,900 |
|
3 |
|
- |
|
9,359,864 |
(-) Intersegment revenues |
12,193 |
|
676,291 |
|
519,891 |
|
- |
|
(1,208,375) |
|
- |
Income from electric energy service |
1,440,053 |
|
655,845 |
|
200,742 |
|
(23,123) |
|
- |
|
2,273,517 |
Financial income |
311,874 |
|
82,486 |
|
48,482 |
|
28,741 |
|
- |
|
471,584 |
Financial expense |
(478,827) |
|
(406,352) |
|
(62,599) |
|
(42,164) |
|
- |
|
(989,942) |
Income before taxes |
1,273,100 |
|
331,979 |
|
186,626 |
|
(36,546) |
|
- |
|
1,755,159 |
Income tax and social contribution |
443,075 |
|
91,109 |
|
60,116 |
|
21,837 |
|
- |
|
616,136 |
Net Income |
830,026 |
|
240,870 |
|
126,509 |
|
(58,383) |
|
- |
|
1,139,022 |
Total Assets (**) |
11,969,145 |
|
10,616,340 |
|
1,327,190 |
|
2,146,255 |
|
- |
|
26,058,929 |
Capital Expenditures and other intangible assets |
741,186 |
|
448,574 |
|
12,450 |
|
38 |
|
|
|
1,202,248 |
Depreciation and Amortization |
268,804 |
|
202,068 |
|
4,288 |
|
109,030 |
|
- |
|
584,191 |
|
|
|
|
|
|
|
|
|
|
|
|
Nine months 2010 |
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
7,716,629 |
|
398,806 |
|
728,832 |
|
892 |
|
- |
|
8,845,159 |
(-) Intersegment revenues |
9,963 |
|
454,352 |
|
566,833 |
|
- |
|
(1,031,148) |
|
- |
Income from electric energy service |
1,429,138 |
|
454,884 |
|
240,217 |
|
(16,457) |
|
- |
|
2,107,782 |
Financial income |
236,838 |
|
36,697 |
|
16,631 |
|
41,951 |
|
- |
|
332,117 |
Financial expense |
(279,222) |
|
(219,828) |
|
(16,261) |
|
(56,037) |
|
- |
|
(571,348) |
Income before taxes |
1,386,754 |
|
271,751 |
|
240,587 |
|
(30,541) |
|
- |
|
1,868,551 |
Income tax and social contribution |
481,708 |
|
89,475 |
|
76,728 |
|
22,226 |
|
- |
|
670,137 |
Net Income |
905,046 |
|
182,276 |
|
163,859 |
|
(52,767) |
|
- |
|
1,198,414 |
Total Assets (**) |
11,179,583 |
|
7,334,603 |
|
405,571 |
|
316,680 |
|
- |
|
19,236,437 |
Capital Expenditures and other intangible assets |
770,841 |
|
435,194 |
|
17,755 |
|
188 |
|
- |
|
1,223,978 |
Depreciation and Amortization |
268,151 |
|
118,182 |
|
3,358 |
|
108,600 |
|
- |
|
498,291 |
|
|
|
|
|
|
|
|
|
|
|
|
(*) Other - Refers basically to the CPFL Energia figures after eliminations of balances with related parties | |||||||||||
(**) The goodwill created in an acquisition and recorded in CPFL Energia was allocated to the respective segments |
( 31 ) 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.
· Energia São Paulo Fundo de Investimento em Participações
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.
· Bonaire Participações S.A.
Controlled by Energia São Paulo Fundo de Investimento em Participações.
· Fundo BB Carteira Livre I - Fundo de Investimento em Ações
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.
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 the year ended December 31, 2010 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 with Banco do Brasil, as mentioned in Note 5.
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
b) Loans and Financing, Debentures and Derivatives – relate to funds raised from Banco do Brasil 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, for which one of the managers is BB DTVM, which charges management fees under normal market conditions for such management.
d) Intangible assets, 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.
Certain subsidiaries have supplementary retirement plan maintained with Fundação CESP and offered to the employees of the subsidiaries, as mentioned in Note 18.
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.
In the period, the subsidiaries obtained releases of financing for working capital from Banco do Brasil, as described in note 16. Some of the debentures issued by the subsidiaries in the period were also subscribed by Banco do Brasil, as described in Note 17.
75
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
( 32 ) FINANCIAL INSTRUMENTS AND OPERATING RISKS
a) Risk Considerations:
The businesses 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. However, the compensation only comes into effect through consumption and the consequent billing of energy after the next tariff adjustment in which such losses have been considered.
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 2010, 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.
Regulatory risk: The electric energy supplied tariffs charged to captive consumers by the distribution subsidiaries are fixed by ANEEL, at intervals established in the Concession Agreements entered into with the Federal Government and in conformity with the periodic tariff review methodology established for the tariff cycle. Once the methodology has been ratified, ANEEL establishes tariffs to be charged by the distributed to the final consumers. In accordance with Law 8.987/1995, the tariffs fixed should insure the economic and financial balance of the concession contract at the time of the tariff review,which could result in lower increases than anticipated by the distribution subsidiaries, albeit offset in subsequent periods by other increases.
Risk Management for Financial instruments
76
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
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.
b) 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 (Note 4).
Accordingly, the market value of a security corresponds to its maturity value (redemption value) marked to present value by the discount factor (relating to the maturity date of the security) obtained from the market interest graph, in Brazilian reais.
In the case of specific electricity sector operations, where there are no similar transactions in the market and with low liquidity, mainly related to regulatory aspects, the subsidiaries assumed that the market value is represented by the respective book value. This is due to the uncertainties reflected in the variables which have to be taken into consideration in creating a pricing model.
In addition to the assets and financial liabilities calculated at fair value through profit or loss, the Company and its subsidiaries have other financial liabilities not calculated at fair value. The market values of these financial instruments as of September 30, 2011 and December 31, 2010, applying the above methodology, are shown below, for comparation purposes only:
Parent Company | |||||||
September 30, 2011 |
December 31,2010 | ||||||
Book Value |
Fair Value |
Book Value |
Fair Value | ||||
Debentures (note 17) |
(453,768) |
(457,335) |
(465,529) |
(470,262) | |||
Total |
(453,768) |
(457,335) |
(465,529) |
(470,262) | |||
Consolidated | |||||||
September 30, 2011 |
December 31,2010 | ||||||
Book Value |
Fair Value |
Book Value |
Fair Value | ||||
Loans and financing (note 16) |
(5,958,743) |
(5,797,875) |
(5,141,554) |
(4,870,909) | |||
Debentures (note 17) |
(5,262,327) |
(5,458,406) |
(3,840,338) |
(3,891,397) | |||
Total |
(11,221,070) |
(11,256,280) |
(8,981,892) |
(8,762,306) |
c) Derivatives
77
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
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 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 the terms of the majority of the derivatives contracted by the subsidiaries (Note 16) are fully aligned with the debt protected, and in order to obtain more relevant and consistent accounting information through the recognition of income and expenses, these debts were recognized, 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, 2011, the Company and its subsidiaries had the following swap operations:
78
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Market values (book values) |
||||||||||||||||||
Company / strategy / counterparts |
Asset |
(Liability) |
Market values, net |
Values at cost, net |
Gain (Loss) on marking to market |
Currency / index |
Maturity range |
Notional |
Negotiation market | |||||||||
Derivatives for protection of debts designated at fair value |
||||||||||||||||||
Exchange variation hedge: |
||||||||||||||||||
CPFL Paulista |
||||||||||||||||||
ABN |
46,425 |
- |
46,425 |
41,339 |
5,086 |
yen |
Jan 2012 |
376,983 |
Over the counter | |||||||||
BNP Paribas |
25,266 |
- |
25,266 |
26,935 |
(1,669) |
dollar |
Jun 2014 |
160,000 |
Over the counter | |||||||||
J.P.Morgan |
12,190 |
- |
12,190 |
13,048 |
(858) |
dollar |
Jul 2014 |
78,250 |
Over the counter | |||||||||
J.P.Morgan |
13,660 |
- |
13,660 |
14,990 |
(1,330) |
dollar |
Aug 2014 |
76,700 |
Over the counter | |||||||||
Morgan Stanley |
4,914 |
- |
4,914 |
6,965 |
(2,051) |
dollar |
Sep 2016 |
85,475 |
Over the counter | |||||||||
Bank of America |
34,070 |
- |
34,070 |
38,893 |
(4,823) |
dollar |
Jul 2014 |
235,050 |
Over the counter | |||||||||
Bank of America |
24,887 |
- |
24,887 |
26,169 |
(1,282) |
dollar |
Jul 2016 |
156,700 |
Over the counter | |||||||||
Societe Generale |
5,941 |
- |
5,941 |
6,507 |
(566) |
dollar |
Aug 2016 |
33,173 |
Over the counter | |||||||||
Citibank |
4,863 |
- |
4,863 |
6,756 |
(1,893) |
dollar |
Sep 2016 |
85,750 |
Over the counter | |||||||||
HSBC |
2,810 |
- |
2,810 |
3,365 |
(555) |
dollar |
Sep 2014 |
41,050 |
Over the counter | |||||||||
Subtotal |
175,026 |
- |
175,026 |
184,967 |
(9,941) |
|||||||||||||
CPFL Piratinga |
||||||||||||||||||
BNP Paribas |
8,216 |
- |
8,216 |
8,999 |
(783) |
dollar |
Jul 2014 |
45,990 |
Over the counter | |||||||||
J.P.Morgan |
27,178 |
- |
27,178 |
29,973 |
(2,795) |
dollar |
Aug 2014 |
153,400 |
Over the counter | |||||||||
Bank of America |
11,528 |
- |
11,528 |
11,897 |
(369) |
dollar |
Aug 2016 |
80,250 |
Over the counter | |||||||||
Societe Generale |
7,795 |
- |
7,795 |
8,538 |
(743) |
dollar |
Aug 2016 |
43,527 |
Over the counter | |||||||||
Citibank |
1,521 |
- |
1,521 |
1,888 |
(367) |
dollar |
Aug 2016 |
12,840 |
Over the counter | |||||||||
Subtotal |
56,238 |
- |
56,238 |
61,295 |
(5,057) |
|||||||||||||
CPFL Sul Paulista |
||||||||||||||||||
Citibank |
668 |
- |
668 |
806 |
(138) |
dollar |
Sep 2014 |
8,000 |
Over the counter | |||||||||
CPFL Leste Paulista |
||||||||||||||||||
Citibank |
668 |
- |
668 |
806 |
(138) |
dollar |
Sep 2014 |
8,000 |
Over the counter | |||||||||
CPFL Mococa |
||||||||||||||||||
Citibank |
584 |
- |
584 |
706 |
(121) |
dollar |
Sep 2014 |
7,000 |
Over the counter | |||||||||
CPFL Jaguari |
||||||||||||||||||
Citibank |
911 |
- |
911 |
1,029 |
(118) |
dollar |
Aug 2014 |
7,000 |
Over the counter | |||||||||
CPFL Geração |
||||||||||||||||||
Citibank |
12,700 |
- |
12,700 |
15,041 |
(2,341) |
dollar |
Aug 2016 |
100,000 |
Over the counter | |||||||||
Subtotal |
246,795 |
- |
246,795 |
264,649 |
(17,854) |
|||||||||||||
Derivatives for protection of debts not designated at fair value |
||||||||||||||||||
Exchange variation hedge: |
||||||||||||||||||
CPFL Paulista |
||||||||||||||||||
HSBC |
2,815 |
- |
2,815 |
2,814 |
1 |
dollar |
Oct 2011 |
20,547 |
Over the counter | |||||||||
CPFL Geração |
||||||||||||||||||
Itaú |
7,920 |
- |
7,920 |
7,833 |
87 |
dollar |
From Oct 2011 to Dec 2011 |
50,169 |
Over the counter | |||||||||
Hedge interest rate variation (1): |
||||||||||||||||||
CPFL Energia |
||||||||||||||||||
Citibank |
25 |
43 |
(18) |
(15) |
(4) |
CDI + spread |
Sep 2011 to Sep 2014 |
450,000 |
Over the counter | |||||||||
RGE |
||||||||||||||||||
Santander |
365 |
- |
365 |
34 |
331 |
CDI + spread |
Dec 2011 to Dec 2013 |
280,000 |
Over the counter | |||||||||
Citibank |
101 |
- |
101 |
6 |
95 |
CDI + spread |
Dec 2011 to Dec 2013 |
100,000 |
Over the counter | |||||||||
Hedge interest rate variation (2): |
||||||||||||||||||
CPFL Piratininga |
||||||||||||||||||
HSBC |
(255) |
- |
(255) |
(7) |
(248) |
TJLP |
Jan 2013 |
18,236 |
Over the counter | |||||||||
Santander |
(267) |
- |
(267) |
(14) |
(253) |
TJLP |
Jan 2013 |
18,242 |
Over the counter | |||||||||
CPFL Geração |
||||||||||||||||||
HSBC |
(485) |
- |
(485) |
(28) |
(457) |
TJLP |
Dec 2012 |
35,321 |
Over the counter | |||||||||
Subtotal |
10,220 |
43 |
10,176 |
10,624 |
(447) |
|||||||||||||
Total |
257,015 |
43 |
256,972 |
275,273 |
(18,301) |
|||||||||||||
Current |
256,791 |
- |
||||||||||||||||
Non-current |
224 |
43 |
||||||||||||||||
Total |
257,015 |
43 |
||||||||||||||||
For further details of terms and information about 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. |
79
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
As mentioned above, certain subsidiaries opted to mark to market debts for which they hold fully tied hedge instruments, resulting in a gain of R$ 17,102 as of September 30, 2011 (Note 16). This gain minimized the loss on derivatives stated previously.
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 quarters and nine months ended September 30, 2011 and 2010, the derivatives resulted in the following impacts on the consolidated Income Statement:
Gain (Loss) | ||||||||||||
2011 |
2010 | |||||||||||
Company |
Hedged risk / transaction |
Account |
3rd quarter |
Nine months |
|
3rd quarter |
Nine months | |||||
CPFL Energia |
Interest rate variation |
Swap of interest rate |
70 |
135 |
(14) |
164 | ||||||
CPFL Energia |
Mark to Market |
Adjustment to fair value |
(654) |
(586) |
20 |
(231) | ||||||
CPFL Paulista |
Mark to Market |
Adjustment to fair value |
(3,673) |
(2,333) |
(13,802) |
3,160 | ||||||
CPFL Paulista |
Exchange variation |
Swap of currency |
233,385 |
185,764 |
1,627 |
1,558 | ||||||
CPFL Piratininga |
Mark to Market |
Adjustment to fair value |
(5,075) |
(5,083) |
(271) |
(271) | ||||||
CPFL Piratininga |
Interest rate variation |
Swap of interest rate |
146 |
(245) |
13 |
13 | ||||||
CPFL Piratininga |
Exchange variation |
Swap of interest rate |
61,295 |
61,295 |
- |
- | ||||||
CPFL Geração |
Exchange variation |
Swap of currency |
23,463 |
14,581 |
(5,594) |
(13,832) | ||||||
CPFL Geração |
Interest rate variation |
Swap of interest rate |
(191) |
(425) |
(38) |
581 | ||||||
CPFL Geração |
Mark to Market |
Adjustment to fair value |
(827) |
1,693 |
206 |
1,792 | ||||||
RGE |
Mark to Market |
Adjustment to fair value |
363 |
205 |
104 |
92 | ||||||
RGE |
Interest rate variation |
Swap of interest rate |
34 |
156 |
109 |
450 | ||||||
CPFL Sul Paulista |
Mark to Market |
Adjustment to fair value |
(138) |
(138) |
- |
- | ||||||
CPFL Sul Paulista |
Exchange variation |
Swap of interest rate |
806 |
806 |
- |
- | ||||||
CPFL Leste Paulista |
Mark to Market |
Adjustment to fair value |
(138) |
(138) |
- |
- | ||||||
CPFL Leste Paulista |
Exchange variation |
Swap of interest rate |
806 |
806 |
- |
- | ||||||
CPFL Mococa |
Mark to Market |
Adjustment to fair value |
(121) |
(121) |
- |
- | ||||||
CPFL Mococa |
Exchange variation |
Swap of interest rate |
706 |
706 |
- |
- | ||||||
CPFL Jaguari |
Mark to Market |
Adjustment to fair value |
(118) |
(118) |
- |
- | ||||||
CPFL Jaguari |
Exchange variation |
Swap of interest rate |
1,029 |
1,029 |
- |
- | ||||||
311,168 |
257,989 |
(17,640) |
(6,524) |
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, 2011 were to be maintained, the simulation of the consolidated effects by type of financial instrument for three different scenarios would be:
|
|
Consolidated | ||||||||
Instruments |
|
Exposure |
|
Risk |
|
Exchange depreciation of 9.2%* |
|
Exchange depreciation of 25%** |
|
Exchange depreciation of 50%** |
Financial asset instruments |
24,185 |
apprec. dollar |
1,954 |
6,046 |
12,093 | |||||
Financial liability instruments |
(1,792,500) |
apprec. dollar |
(144,800) |
(448,125) |
(896,250) | |||||
Derivatives - Plain Vanilla Swap |
1,705,396 |
apprec. dollar |
137,763 |
426,349 |
852,698 | |||||
(62,919) |
(5,083) |
(15,730) |
(31,459) | |||||||
Financial liability instruments |
(516,106) |
apprec. yen |
(41,692) |
(129,027) |
(258,053) | |||||
Derivatives - Plain Vanilla Swap |
516,106 |
apprec. yen |
41,692 |
129,027 |
258,053 | |||||
- |
- |
- |
- | |||||||
(62,919) |
(5,083) |
(15,730) |
(31,459) | |||||||
* In accordance with exchange graphs contained in information provided by the BM&F |
||||||||||
**In compliance with CVM Instruction 475/08 |
80
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Variation in interest rates
In the event that (i) the scenario of exposure of the financial instruments indexed to variable interest rates as of September 30, 2011 were to be maintained, and (ii) the respective accumulated annual indexes as of that date were to remain stable (CDI of 11.47% p.a.; IGP-M of 7.46% p.a.; TJLP of 6.0% p.a.), the effects that would be recorded in the consolidated financial statements for the next 12 months would be a net financial expense of R$ 702,662. 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 |
|
4,826,314 |
|
CDI variation |
|
(54,537) |
|
138,395 |
276,789 | |
Financial liability instruments |
|
(7,031,704) |
CDI variation |
79,458 |
(201,634) |
(403,268) | ||||
Derivatives - Plain Vanilla Swap |
|
(2,035,967) |
CDI variation |
23,006 |
(58,381) |
(116,763) | ||||
|
(4,241,357) |
47,927 |
(121,621) |
(243,242) | ||||||
|
||||||||||
Financial assets instruments |
|
57,423 |
IGP-M variation |
(649) |
1,071 |
2,142 | ||||
Financial liability instruments |
|
(28,911) |
IGP-M variation |
327 |
(539) |
(1,078) | ||||
|
28,512 |
(322) |
532 |
1,063 | ||||||
|
||||||||||
Financial liability instruments |
|
(3,709,863) |
TJLP variation |
(51,196) |
(55,648) |
(111,296) | ||||
Derivatives - Plain Vanilla Swap |
|
71,437 |
TJLP variation |
986 |
1,072 |
2,143 | ||||
|
(3,638,426) |
(50,210) |
(54,576) |
(109,153) | ||||||
|
|
|||||||||
Total increase |
|
(7,851,271) |
|
|
|
(2,605) |
|
(175,666) |
|
(351,331) |
|
|
|
|
|
|
|
|
|
|
|
* The CDI, IGP-M and TJLP indexes considered of 10.34%, 6.33% and 7.38%, respectively, were obtained from information available in the market. | ||||||||||
**In compliance with CVM Instruction 475/08 |
( 33 ) 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.
81
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
|
|
Consolidated | ||||||||||||||
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
December 31, 2009 | |||||||||
Assets |
|
|||||||||||||||
Consumers, Concessionaires and Licensees |
|
|||||||||||||||
Discounts TUSD (*) and Irrigation |
65,389 |
64,236 |
71,631 |
54,407 |
34,077 |
22,111 |
16,828 |
12,753 | ||||||||
Other financial components |
- |
- |
- |
- |
- |
- |
- |
199 | ||||||||
65,389 |
64,236 |
71,631 |
54,408 |
34,077 |
22,111 |
16,828 |
12,952 | |||||||||
Deferred Costs Variations |
|
|||||||||||||||
Parcel "A" |
- |
- |
- |
333 |
666 |
999 |
1,333 |
1,290 | ||||||||
CVA (**) |
353,119 |
335,493 |
330,338 |
333,622 |
304,552 |
271,736 |
366,741 |
374,336 | ||||||||
353,119 |
335,493 |
330,338 |
333,954 |
305,218 |
272,735 |
368,074 |
375,626 | |||||||||
Prepaid Expenses |
|
|||||||||||||||
Overcontracting |
24,668 |
6,585 |
8,898 |
23,860 |
36,587 |
54,032 |
70,752 |
100,326 | ||||||||
Low income consumers' subsidy - Losses |
20,162 |
32,680 |
31,012 |
34,994 |
44,831 |
47,281 |
48,186 |
55,506 | ||||||||
Neutrality of the sector charges |
933 |
1,160 |
381 |
- |
1,337 |
897 |
- |
- | ||||||||
Tariff adjustment |
935 |
1,402 |
5,194 |
13,891 |
22,226 |
30,560 |
||||||||||
Other financial components |
45,037 |
44,435 |
50,190 |
53,314 |
48,819 |
58,742 |
36,467 |
11,557 | ||||||||
91,735 |
86,262 |
95,675 |
126,059 |
153,800 |
191,512 |
155,405 |
167,389 | |||||||||
Liabilities |
|
|||||||||||||||
Deferred Gains Variations |
|
|||||||||||||||
Parcel "A" |
- |
- |
- |
(11,472) |
(22,906) |
(34,338) |
(45,772) |
(44,419) | ||||||||
CVA (**) |
(452,172) |
(438,985) |
(402,013) |
(364,365) |
(380,697) |
(417,770) |
(506,543) |
(377,735) | ||||||||
(452,172) |
(438,985) |
(402,013) |
(375,837) |
(403,603) |
(452,108) |
(552,315) |
(422,154) | |||||||||
Other Accounts Payable |
|
|||||||||||||||
Tariff review |
- |
- |
- |
- |
- |
(23,382) |
(49,315) |
(89,261) | ||||||||
Discounts TUSD and Irrigation (*) |
(522) |
(2,043) |
(2,063) |
(1,923) |
(2,666) |
(3,054) |
(3,273) |
(991) | ||||||||
Tariff adjustment |
- |
- |
|
- |
(3,556) |
(7,234) |
(10,882) |
(14,225) |
- | |||||||
Overcontracting |
(65,857) |
(116,964) |
(127,195) |
(61,391) |
(52,659) |
(47,679) |
(46,119) |
(17,541) | ||||||||
Low income consumers' subsidy - Gains |
(8,032) |
(6,426) |
(5,923) |
(6,280) |
(3,172) |
(3,924) |
(5,890) |
(6,011) | ||||||||
Neutrality of the sector charges |
(91,375) |
(96,955) |
(111,800) |
(63,905) |
(50,030) |
(27,456) |
(1,521) |
- | ||||||||
Other financial components |
(8,395) |
(11,461) |
(13,817) |
(26,110) |
(31,449) |
(36,980) |
(24,110) |
(12,138) | ||||||||
(174,181) |
(233,849) |
(260,798) |
(163,165) |
(147,210) |
(153,360) |
(144,453) |
(125,942) | |||||||||
Total net |
|
(116,110) |
(186,842) |
(165,166) |
(24,581) |
(57,718) |
(119,110) |
(156,461) |
7,871 | |||||||
(*) Network Usage Charge - TUSD |
||||||||||||||||
(**) Deferred Tariff Costs and Gains Variations from Parcel "A" itens - ("CVA") |
82
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
( 34 ) RELEVANT FACTS AND SUBSEQUENT EVENTS
34.1 Loans and financing
A meeting of the Board of Directors held in September 2011 granted approval for the subsidiary RGE to raise funds through external loans, to a total amount in foreign currency of up to R$ 126 million, for a term of up to 5 (five) years. The Company will guarantee these operations by granting an aval guarantees and promissory notes.
Additionally, in October 2011, the amount of R$ 55,701 was relased to the subsidiary CPFL Piratininga in relation to the BNDES - FINEM IV financing (Note 16). The outstanding balance of R$ 41,800 is scheduled for release by the end of 2011.
34.2 Tariff adjustment CPFL Piratininga
The tariff review for the subsidiary CPFL Piratininga was scheduled for October 23, 2011, however, due to the methodology applicable to the third tariff review, ANEEL decided, in authorization resolution 1,223 published on October 24, 2011 in the Official Gazette of the Federal Executive, to maintain the current tariffs, approved in the 2010 tariff review, until the new methodology for the third tariff review cycle is applied. Management estimates that ANEEL will complete this process in fiscal year 2012.
83
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
COMMENTS ON PERFORMANCE AND FORECASTS
84
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
OTHER RELEVANT INFORMATION
Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, as of September 30, 2011:
Shareholders |
Common shares |
Interest - % | ||
VBC Energia S.A. |
245,897,454 |
25.55 | ||
BB Carteira Livre I FIA |
298,467,458 |
31.02 | ||
Bonaire Participações S.A. |
121,427,038 |
12.62 | ||
BNDES Participações S.A. |
81,053,460 |
8.42 | ||
Board of directors |
212 |
- | ||
Executive officers |
49,980 |
- | ||
Other shareholders |
215,378,658 |
22.38 | ||
Total |
962,274,260 |
100.00 |
Quantity and characteristic of securities held by the Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of September 30, 2011 and 2010:
September 30, 2011 |
September 30, 2010 | |||||||
Shareholders |
Common shares |
Interest - % |
Common shares |
Interest - % | ||||
Controlling shareholders |
665,791,950 |
69.19 |
332,895,958 |
69.19 | ||||
Administrator |
- |
|||||||
Executive officers |
212 |
0.00 |
2,824 |
0.00 | ||||
Board of directors |
49,980 |
0.01 |
112 |
0.00 | ||||
Fiscal Council Members |
- |
- |
- |
- | ||||
Other shareholders - free float |
296,432,118 |
30.81 |
148,238,236 |
30.81 | ||||
Total |
962,274,260 |
100.00 |
481,137,130 |
100.00 | ||||
Outstanding shares |
296,432,118 |
30.81 |
148,238,236 |
30.81 |
85
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Shareholders holding more than 5% of the shares of the same type and class, up to individual level, as of September 30, 2011:
2 - Entity: 1 CPFL ENERGIA S/A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
665,791,950 |
69.19% |
69.19% |
- |
0.00% |
0.00% |
665,791,950 |
69.19% |
1.1 VBC Energia S.A. |
245,897,454 |
25.55% |
25.55% |
|
0.00% |
0.00% |
245,897,454 |
25.55% |
1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I |
298,467,458 |
31.02% |
31.02% |
|
0.00% |
0.00% |
298,467,458 |
31.02% |
1.3 Bonaire Participações S.A. |
18,670,990 |
1.94% |
1.94% |
|
0.00% |
0.00% |
18,670,990 |
1.94% |
1.4 Energia São Paulo FIP |
102,756,048 |
10.68% |
10.68% |
|
0.00% |
0.00% |
102,756,048 |
10.68% |
Noncontrolling shareholders |
296,482,310 |
30.81% |
30.81% |
- |
0.00% |
0.00% |
296,482,310 |
30.81% |
1.5 BNDES Participações S.A. |
81,053,460 |
8.42% |
8.42% |
|
0.00% |
0.00% |
81,053,460 |
8.42% |
1.6 Board of Directors |
212 |
0.00% |
0.00% |
|
0.00% |
0.00% |
212 |
0.00% |
1.7 Executive officers |
49,980 |
0.01% |
0.01% |
|
0.00% |
0.00% |
49,980 |
0.01% |
1.8 Other shareholders |
215,378,658 |
22.38% |
22.38% |
|
0.00% |
0.00% |
215,378,658 |
22.38% |
Total |
962,274,260 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
962,274,260 |
100.00% |
3 - Entity: 1.1 VBC ENERGIA S/A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
5,354,225 |
100.00% |
90.37% |
141,060 |
100.00% |
2.57% |
5,495,285 |
100.00% |
1.1.1 Átila Holdings S/A |
2,405,393 |
44.93% |
43.77% |
70,530 |
50.00% |
1.28% |
2,475,923 |
45.06% |
1.1.2 Camargo Corrêa Energia S.A. |
1,504,095 |
28.09% |
27.37% |
47,018 |
33.33% |
0.86% |
1,551,113 |
28.23% |
1.1.3 Camargo Corrêa S.A. |
1,056,630 |
19.73% |
19.23% |
23,512 |
16.67% |
0.43% |
1,080,142 |
19.66% |
1.1.4 Camargo Corrêa Investimento em Infra-Estrutura S.A. |
388,107 |
7.25% |
7.06% |
- |
0.00% |
0.00% |
388,107 |
7.06% |
Noncontrolling shareholders |
5 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
5 |
0.00% |
1.1.4 Other shareholders |
5 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
5 |
0.00% |
Total |
5,354,230 |
100.00% |
97.43% |
141,060 |
100.00% |
2.57% |
5,495,290 |
100.00% |
4 - Entity: 1.1.1 Átila Holdings S/A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
821,452,787 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
821,452,787 |
100.00% |
1.1.1.1 Construções e Comércio Camargo Corrêa S.A. |
380,575,180 |
46.33% |
46.33% |
|
0.00% |
0.00% |
380,575,180 |
46.33% |
1.1.1.2 Camargo Corrêa S.A |
440,877,607 |
53.67% |
53.67% |
|
0.00% |
0.00% |
440,877,607 |
53.67% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
0.00% |
0.00% |
|
0.00% |
0.00% |
- |
0.00% |
Total |
821,452,787 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
821,452,787 |
100.00% |
5 - Entity: 1.1.2 Camargo Corrêa Energia S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
2,357,982 |
100.00% |
77.41% |
688,220 |
100.00% |
22.59% |
3,046,202 |
100.00% |
1.1.2.1 Camargo Corrêa Investimento em Infra-Estrutura S.A. |
2,357,982 |
100.00% |
77.41% |
688,220 |
100.00% |
22.59% |
3,046,202 |
100.00% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
7 |
0.00% |
0.00% |
7 |
0.00% |
1.1.2.2 Other shareholders |
- |
0.00% |
0.00% |
7 |
0.00% |
0.00% |
7 |
0.00% |
Total |
2,357,982 |
100.00% |
77.41% |
688,227 |
100.00% |
22.59% |
3,046,209 |
100.00% |
6 - Entity: 1.1.3 Camargo Corrêa S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
48,941 |
99.99% |
34.45% |
93,099 |
100.00% |
65.54% |
142,040 |
100.00% |
1.1.3.1 Participações Morro Vermelho S.A. |
48,941 |
99.99% |
34.45% |
93,099 |
100.00% |
65.54% |
142,040 |
100.00% |
Noncontrolling shareholders |
5 |
0.01% |
0.00% |
1 |
0.00% |
0.00% |
6 |
0.00% |
1.1.3.2 Other shareholders |
5 |
0.01% |
0.00% |
1 |
0.00% |
0.00% |
6 |
0.00% |
Total |
48,946 |
100.00% |
34.46% |
93,100 |
100.00% |
65.54% |
142,046 |
100.00% |
7 - Entity: 1.1.1.1 Construções e Comércio Camargo Corrêa S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
363,933 |
100.00% |
80.57% |
87,772 |
99.99% |
19.43% |
451,705 |
100.00% |
1.1.1.1.1 Camargo Corrêa Construções e Participações S.A. |
363,933 |
100.00% |
80.57% |
87,772 |
99.99% |
19.43% |
451,705 |
100.00% |
Noncontrolling shareholders |
5 |
0.00% |
0.00% |
8 |
0.01% |
0.00% |
13 |
0.00% |
1.1.1.1.2 Other shareholders |
5 |
0.00% |
0.00% |
8 |
0.01% |
0.00% |
13 |
0.00% |
Total |
363,938 |
100.00% |
80.57% |
87,780 |
100.00% |
19.43% |
451,718 |
100.00% |
8 - Entity: 1.1.1.1.1 Camargo Corrêa Construções e Participações S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
2,749,756,288 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
2,749,756,288 |
100.00% |
1.1.1.1.1.1 Camargo Corrêa S.A. |
2,749,756,288 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
2,749,756,288 |
100.00% |
Noncontrolling shareholders |
6 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
6 |
0.00% |
1.1.1.1.1.2 Other shareholders |
6 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
6 |
0.00% |
Total |
2,749,756,294 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
2,749,756,294 |
100.00% |
86
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
9 - Entity: 1.1.2.1 Camargo Corrêa Investimento em Infra-Estrutura S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
861,502,274 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
861,502,274 |
100.00% |
1.1.2.1.1 Camargo Corrêa S.A. |
861,502,274 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
861,502,274 |
100.00% |
Noncontrolling shareholders |
7 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
7 |
0.00% |
1.1.2.1.2 Other shareholders |
7 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
7 |
0.00% |
Total |
861,502,281 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
861,502,281 |
100.00% |
10 - Entity: 1.1.3.1 Participações Morro Vermelho S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
2,249,994 |
100.00% |
33.33% |
4,500,000 |
100.00% |
66.67% |
6,749,994 |
99.99% |
1.1.3.1.1 RCABON Empreendimentos e Participações S.A |
749,998 |
33.33% |
11.11% |
- |
0.00% |
0.00% |
749,998 |
11.11% |
1.1.3.1.2 RCNON Empreendimentos e Participações S.A |
749,998 |
33.33% |
11.11% |
- |
0.00% |
0.00% |
749,998 |
11.11% |
1.1.3.1.3 RCPODON Empreendimentos e Participações S.A |
749,998 |
33.33% |
11.11% |
- |
0.00% |
0.00% |
749,998 |
11.11% |
1.1.3.1.4 RCABPN Empreendimentos e Participações S.A |
- |
0.00% |
0.00% |
1,498,080 |
33.29% |
22.19% |
1,498,080 |
22.19% |
1.1.3.1.5 RCNPN Empreendimentos e Participações S.A |
- |
0.00% |
0.00% |
1,498,080 |
33.29% |
22.19% |
1,498,080 |
22.19% |
1.1.3.1.6 RCPODPN Empreendimentos e Participações S.A |
- |
0.00% |
0.00% |
1,498,080 |
33.29% |
22.19% |
1,498,080 |
22.19% |
1.1.3.1.7 RRRPN Empreendimentos e Participações S.A |
- |
0.00% |
0.00% |
5,760 |
0.13% |
0.09% |
5,760 |
0.09% |
Noncontrolling shareholders |
6 |
0.01% |
0.00% |
- |
0.00% |
0.00% |
6 |
0.01% |
1.1.3.1.8 Other shareholders |
6 |
0.01% |
0.00% |
- |
0.00% |
0.00% |
6 |
0.01% |
Total |
2,250,000 |
100.00% |
33.33% |
4,500,000 |
100.00% |
66.67% |
6,750,000 |
100.00% |
11 - Entity: 1.1.3.1.1 RCABON Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
749,850 |
100.00% |
99.98% |
40 |
26.67% |
0.01% |
749,890 |
99.99% |
1.1.3.1.1.1 Rosana Camargo de Arruda Botelho |
749,850 |
100.00% |
99.98% |
40 |
26.67% |
0.01% |
749,890 |
99.99% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
110 |
73.33% |
0.01% |
110 |
0.01% |
1.1.3.1.1.2 Other shareholders |
|
0.00% |
0.00% |
110 |
73.33% |
0.01% |
110 |
0.01% |
Total |
749,850 |
100.00% |
99.98% |
150 |
100.00% |
0.02% |
750,000 |
100.00% |
12 - Entity: 1.1.3.1.2 RCNON Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
749,850 |
100.00% |
99.98% |
40 |
26.67% |
0.01% |
749,890 |
99.99% |
1.1.3.1.2.1 Renata de Camargo Nascimento |
749,850 |
100.00% |
99.98% |
40 |
26.67% |
0.01% |
749,890 |
99.99% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
110 |
73.33% |
0.01% |
110 |
0.01% |
1.1.3.1.2.2 Other shareholders |
|
0.00% |
0.00% |
110 |
73.33% |
0.01% |
110 |
0.01% |
Total |
749,850 |
100.00% |
99.98% |
150 |
100.00% |
0.01% |
750,000 |
100.00% |
13 - Entity: 1.1.3.1.3 RCPODON Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
749,850 |
100.00% |
99.98% |
- |
0.00% |
0.00% |
749,850 |
99.98% |
1.1.3.1.3.1 Regina de Camargo Pires Oliveira Dias |
749,850 |
100.00% |
99.98% |
|
0.00% |
0.00% |
749,850 |
99.98% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
150 |
100.00% |
0.02% |
150 |
0.02% |
1.1.3.1.3.2 Other shareholders |
|
0.00% |
0.00% |
150 |
100.00% |
0.02% |
150 |
0.02% |
Total |
749,850 |
100.00% |
99.98% |
150 |
100.00% |
0.02% |
750,000 |
100.00% |
14 - Entity: 1.1.3.1.4 RCABPN Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
1,499,890 |
99.99% |
99.99% |
- |
0.00% |
0.00% |
1,499,890 |
99.99% |
1.1.3.1.4.1 Rosana Camargo de Arruda Botelho |
1,499,890 |
99.99% |
99.99% |
|
0.00% |
0.00% |
1,499,890 |
99.99% |
Noncontrolling shareholders |
110 |
0.01% |
0.01% |
- |
0.00% |
0.00% |
110 |
0.01% |
1.1.3.1.4.2 Other shareholders |
110 |
0.01% |
0.01% |
|
0.00% |
0.00% |
110 |
0.01% |
Total |
1,500,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,500,000 |
100.00% |
15 - Entity: 1.1.3.1.5 RCNPN Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
1,499,890 |
99.99% |
99.99% |
- |
0.00% |
0.00% |
1,499,890 |
99.99% |
1.1.3.1.5.1 Renata de Camargo Nascimento |
1,499,890 |
99.99% |
99.99% |
|
0.00% |
0.00% |
1,499,890 |
99.99% |
Noncontrolling shareholders |
110 |
0.01% |
0.01% |
- |
0.00% |
0.00% |
110 |
0.01% |
1.1.3.1.5.2 Other shareholders |
110 |
0.01% |
0.01% |
|
0.00% |
0.00% |
110 |
0.01% |
Total |
1,500,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,500,000 |
100.00% |
87
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QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
16 - Entity: 1.1.3.1.6 RCPODPN Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
1,499,850 |
99.99% |
99.99% |
- |
0.00% |
0.00% |
1,499,850 |
99.99% |
1.1.3.1.6.1 Regina de Camargo Pires Oliveira Dias |
1,499,850 |
99.99% |
99.99% |
|
0.00% |
0.00% |
1,499,850 |
99.99% |
Noncontrolling shareholders |
150 |
0.01% |
0.01% |
- |
0.00% |
0.00% |
150 |
0.01% |
1.1.3.1.6.2 Other shareholders |
150 |
0.01% |
0.01% |
|
0.00% |
0.00% |
150 |
0.01% |
Total |
1,500,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,500,000 |
100.00% |
17 - Entity: 1.1.3.1.7 RRRPN Empreendimentos e Participações S.A |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
5,940 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
5,940 |
100.00% |
1.1.3.1.7.1 Rosana Camargo de Arruda Botelho |
1,980 |
33.33% |
33.33% |
|
0.00% |
0.00% |
1,980 |
33.33% |
1.1.3.1.7.2 Renata de Camargo Nascimento |
1,980 |
33.33% |
33.33% |
|
0.00% |
0.00% |
1,980 |
33.33% |
1.1.3.1.7.3 Regina de Camargo Pires Oliveira Dias |
1,980 |
33.34% |
33.34% |
|
0.00% |
0.00% |
1,980 |
33.34% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
0.00% |
0.00% |
|
0.00% |
0.00% |
- |
0.00% |
Total |
5,940 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
5,940 |
100.00% |
18 - Entity: 1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
130,163,541 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
130,163,541 |
100.00% |
1.2.1 Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI |
130,163,541 |
100.00% |
100.00% |
|
0.00% |
0.00% |
130,163,541 |
100.00% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
0.00% |
0.00% |
|
0.00% |
0.00% |
|
0.00% |
Total |
130,163,541 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
130,163,541 |
100.00% |
19 - Entity: 1.3 Bonaire Participações S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
66,728,872 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
66,728,872 |
100.00% |
1.3.1 Energia São Paulo Fundo de Investimento em Participações |
66,728,872 |
100.00% |
100.00% |
|
0.00% |
0.00% |
66,728,872 |
100.00% |
Noncontrolling shareholders |
6 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
6 |
0.00% |
1.3.2 Other shareholders |
6 |
0.00% |
0.00% |
- |
0.00% |
0.00% |
6 |
0.00% |
Total |
66,728,878 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
66,728,878 |
100.00% |
20 - Entity: 1.3.1 Energia São Paulo Fundo de Investimento em Participações |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
796,479,768 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
796,479,768 |
100.00% |
1.3.1.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114 |
353,528,507 |
44.39% |
44.39% |
|
0.00% |
0.00% |
353,528,507 |
44.39% |
1.3.1.2 Fundação Petrobras de Seguridade Social - Petros |
181,405,069 |
22.78% |
22.78% |
|
0.00% |
0.00% |
181,405,069 |
22.78% |
1.3.1.3 Fundação Sabesp de Seguridade Social - Sabesprev |
4,823,881 |
0.61% |
0.61% |
|
0.00% |
0.00% |
4,823,881 |
0.61% |
1.3.1.4 Fundação Sistel de Seguridade Social |
256,722,311 |
32.23% |
32.23% |
|
0.00% |
0.00% |
256,722,311 |
32.23% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
0.00% |
0.00% |
|
0.00% |
0.00% |
- |
0.00% |
Total |
796,479,768 |
100% |
100% |
- |
- |
- |
796,479,768 |
100% |
21 - Entity: 1.3.1.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114 |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
353,528,507 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
353,528,507 |
100.00% |
1.3.1.1.1 Fundação CESP |
353,528,507 |
100.00% |
|
|
0.00% |
0.00% |
353,528,507 |
100.00% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
0.00% |
0.00% |
|
0.00% |
0.00% |
- |
0.00% |
Total |
353,528,507 |
100% |
100% |
|
0% |
0% |
353,528,507 |
100% |
22 - Entity: 1.5 BNDES Participações S.A. |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
Controlling shareholders |
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
1.4.1 Banco Nacional de Desenv. Econômico e Social ( 1 ) |
1 |
100.00% |
100.00% |
|
0.00% |
0.00% |
1 |
100.00% |
Noncontrolling shareholders |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
0.00% |
0.00% |
|
0.00% |
0.00% |
- |
0.00% |
Total |
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
( 1 ) 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.
88
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Quarterly Social Report / 2011 * |
|
|||||
Company: CPFL ENERGIA S.A. |
||||||
1 - Basis for Calculation |
Nine months 2011 Value (R$ 000) |
Nine months 2010 Value (R$ 000) | ||||
Net Revenues (NR) |
9,359,864 |
8,845,159 | ||||
Operating Result (OR) |
1,755,159 |
1,868,551 | ||||
Gross Payroll (GP) |
443,937 |
392,854 | ||||
2 - Internal Social Indicators |
Value (000) |
% of GP |
% of NR |
Value (000) |
% of GP |
% of NR |
Food |
34,947 |
7.87% |
0.37% |
30,935 |
7.87% |
0.35% |
Mandatory payroll taxes |
105,160 |
23.69% |
1.12% |
106,701 |
27.16% |
1.21% |
Private pension plan |
22,128 |
4.98% |
0.24% |
19,274 |
4.91% |
0.22% |
Health |
19,033 |
4.29% |
0.20% |
23,164 |
5.90% |
0.26% |
Occupational safety and health |
1,597 |
0.36% |
0.02% |
1,612 |
0.41% |
0.02% |
Education |
1,419 |
0.32% |
0.02% |
1,754 |
0.45% |
0.02% |
Culture |
0 |
0.00% |
0.00% |
0 |
0.00% |
0.00% |
Trainning and professional development |
6,663 |
1.50% |
0.07% |
7,285 |
1.85% |
0.08% |
Day-care / allowance |
655 |
0.15% |
0.01% |
1,113 |
0.28% |
0.01% |
Profit / income sharing |
31,184 |
7.02% |
0.33% |
31,062 |
7.91% |
0.35% |
Others |
3,134 |
0.71% |
0.03% |
3,929 |
1.00% |
0.04% |
Total - internal social indicators |
225,920 |
50.89% |
2.41% |
226,829 |
57.74% |
2.56% |
3 - External Social Indicators |
Value (000) |
% of OR |
% of NR |
Value (000) |
% of OR |
% of NR |
Education |
165 |
0.01% |
0.00% |
533 |
0.03% |
0.01% |
Culture |
8,397 |
0.48% |
0.09% |
7,282 |
0.39% |
0.08% |
Health and sanitation |
30 |
0.00% |
0.00% |
1,864 |
0.10% |
0.02% |
Sport |
165 |
0.01% |
0.00% |
40 |
0.00% |
0.00% |
War on hunger and malnutrition |
0 |
0.00% |
0.00% |
0 |
0.00% |
0.00% |
Others |
1,704 |
0.10% |
0.02% |
1,559 |
0.08% |
0.02% |
Total contributions to society |
10,461 |
0.60% |
0.11% |
11,278 |
0.60% |
0.13% |
Taxes (excluding payroll taxes) |
4,534,269 |
258.34% |
48.44% |
4,157,982 |
222.52% |
47.01% |
Total - external social indicators |
4,544,730 |
258.94% |
48.56% |
4,169,260 |
223.13% |
47.14% |
4 - Environmental Indicators |
Value (000) |
% of OR |
% of NR |
Value (000) |
% of OR |
% of NR |
Investments relalated to company production / operation |
30,369 |
1.73% |
0.32% |
73,304 |
3.92% |
0.83% |
Investments in external programs and/or projects |
37,506 |
2.14% |
0.40% |
58,271 |
3.12% |
0.66% |
Total environmental investments |
67,875 |
3.87% |
0.73% |
131,575 |
7.04% |
1.49% |
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 months2011 |
|
|
Nine months2010 |
|
Nº of employees at the end of period |
8,286 |
7,664 | ||||
Nº of employees hired during the period |
1,356 |
1,030 | ||||
Nº of outsourced employees |
ND |
ND | ||||
Nº of interns |
277 |
252 | ||||
Nº of employees above 45 years age |
2,041 |
2,106 | ||||
Nº of women working at the company |
1,981 |
1,666 | ||||
% of management position occupied by women |
9.84% |
8.70% | ||||
Nº of Afro-Brazilian employees working at the company |
1,010 |
853 | ||||
% of management position occupied by Afro-Brazilian employees |
2.73% |
1.79% | ||||
Nº of employees with disabilities |
283 |
294 | ||||
6 - Relevant information regarding the exercise of corporate citizenship |
|
Nine months 2011 |
|
|
Nine months 2010 |
|
Ratio of the highest to the lowest compensation at company |
80.03 |
79.33 | ||||
Total number of work-related accidents |
25 |
13 | ||||
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 |
in Procon |
in the Courts |
in the company |
in Procon |
in the Courts |
|
212,235 |
1,306 |
3,220 |
530,416 |
1,666 |
1,291 |
% of complaints and criticisms attended to or resolved: |
in the company |
in Procon |
in the Courts |
in the company |
in Procon |
in the Courts |
|
100% |
100% |
21.47% |
100% |
100% |
25.76% |
Total value-added to distribute (R$ 000): |
Nine months 2011 |
7,217,633 |
|
Nine months 2010 |
6,479,878 |
|
Value-Added Distribution (VAD): |
63.9% government 6.1% employees |
66,1% government 5.6% 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 |
89
REPORT ON SPECIAL REVIEW-UNQUALIFIED |
Independent auditors report over special Quarterly Information
To Board of directors and Shareholders of
CPFL Energia S.A.
São Paulo - SP
Introduction
We have reviewed the interim financial information, individual and consolidated, of CPFL Energia S.A., comprised in Quarterly Information Form related to the quarter ended September 30, 2011, comprising the balance sheets and the respective statements of income, comprehensive income, shareholders’ equity and cash flows for the quarter and nine months period ended in that date, which include the summary of accounting practices and the footnotes.
The management is responsible for the preparation of the individual interim financial information in accordance to CPC 21 - Interim financial information and the consolidated interim financial information in accordance to Technical Pronouncement CPC 21 and with the international rule IAS 34 - Interim Financial Reporting, issued by International Accounting Standards Board - IASB, such as the presentation of these information in accordance with the rules issued by Brazilian Securities Commission - CVM, applicable to the preparation of quarterly information - ITR. Our responsibility is to express a conclusion on these interim financial information based on our review.
Review scope
We conducted our review in accordance with the Brazilian and international rule of the interim information review (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information involves performing inquires, mainly to the people responsible to the financial and accounting matters, performing analytical procedures and other review procedures. The reach of an review is significantly minor of an audit conducted in accordance with the audit rules and, consequently, do not permit us to obtain assurance that the we know all the significant issues that may be identified in an audit. Therefore, we do not express an audit opinion.
90
Free Translation of the original in Portuguese)
QUARTERLY INFORMATION – ITR – Date: September 30, 2011 - CPFL Energia S. A
Conclusion over the individual interim financial information
Based on our review, we are not aware of any fact the make us to believe that the individual interim financial information included in the quarterly information abovementioned was not prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the rules issued by Brazilian Securities Commission - CVM.
Conclusion over the consolidated interim financial information
Based on our review, we are not aware of any fact the make us to believe that the consolidated interim financial information included in the quarterly information abovementioned was not prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of Quarterly Information - ITR, and presented in accordance with the rules issued by Brazilian Securities Commission - CVM.
Others matters
Interim information of the additional value
We have also reviewed, the individual and consolidated interim financial information of statements of additional value (DVA), related to the quarterly ended September 30, 2011, whose presentation in the interim information is required by the Brazilian Securities Commission – CVM for public companies in the preparation of Quarterly Information, and considered as a supplemental information for IFRS that do not requires the DVA presentation. Those statements were subject to the same aforementioned review procedures, and in accordance with our review, we are not aware of any fact the make us to believe that was not prepared, in all material respects, in accordance with the individual and consolidated interim financial information as a whole.
Campinas, November 7, 2011
KPMG Auditores Independentes
CRC 2SP014428/O-6
Jarib Brisola Duarte Fogaça
Contador CRC 1SP125991/O-0
91
CPFL ENERGIA S.A. | ||
|
By: |
/S/ LORIVAL NOGUEIRA LUZ JUNIOR
|
Name: Title: |
Lorival Nogueira Luz 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.