Demonstra??es Financeiras em Padr?es Internacionais

Eneva S.A.
(Publicly-held company)
Quarterly Information - ITR
at June 30, 2014
and report on review
of quarterly information

Number of Shares (thousand) Current Quarter 6/30/2014
Common - Paid-in Capital 702524
Preferred - Paid-in Capital 0
Total - Paid-in Capital 702524
Common - Treasury 0
Preferred - Treasury 0
Total - Treasury 0

Eneva S.A.


Balance Sheet - Assets

(thousands of Reais)

Account Code Account Description
Current
Quarter
6/30/2014
Previous
Year
12/31/2013
1 Total Assets 4,736,905 4,751,985
1.01 Current Assets 327,932 141,241
1.01.01 Cash and Cash Equivalents 12,011 110,156
1.01.01.01 Cash and Bank deposits 3,581 509
1.01.01.02 Fundo Multimercado MPX 63 8,430 109,647
1.01.06 Recoverable Taxes 10,611 25,701
1.01.06.01 Current Taxes Recoverable 10,611 25,701
1.01.08 Other Current Assets 305,310 5,384
1.01.08.01 Noncurrent Assets on Sale 303,913 0
1.01.08.03 Other 1,397 5,384
1.01.08.03.01 Other Advances 1,358 1,175
1.01.08.03.03 Gain on derivatives 0 4,171
1.01.08.03.04 Escrow Deposits 39 38
1.02 Noncurrent Assets 4,408,973 4,610,744
1.02.01 Long-Term Assets 1,490,549 1,464,405
1.02.01.09 Other Noncurrent Assets 1,490,549 1,464,405
1.02.01.09.07 Recoverable Taxes 28,026 7,215
1.02.01.09.08
Accounts receivable from other
related parties
12,515 217,337
1.02.01.09.09
AFAC at Subsidiaries and Joint
Ventures
288,795 206,678
1.02.01.09.10 Prepaid expense 841 841
1.02.01.09.11
Loan at Subsidiaries and Joint
Ventures
973,278 909,327
1.02.01.09.12
Accounts receivable from
Subsidiaries and Joint Ventures
178,490 123,005
1.02.01.09.13 Embedded derivatives 8,602 0
1.02.01.09.14 Other Accounts Receivable 2 2
1.02.02 Investments 2,904,468 3,130,978
1.02.02.01 Equity Interests 2,904,468 3,130,978
1.02.02.01.01
Interests in Associated
Companies
87,674 51,899
1.02.02.01.02 Interests in Subsidiaries 1,666,324 2,181,366
1.02.02.01.03 Interests in Joint Ventures 1,088,375 835,618
1.02.02.01.04 Other Equity Interests 62,095 62,095
1.02.03 Property, plant and equipment 11,332 12,634
1.02.04 Intangible assets 2,624 2,727

Eneva S.A.


Balance Sheet - Liabilities


Current Quarter
6/30/2014
Previous Year
12/31/2013
2 Total Liabilities 4,736,905 4,751,985
2.01 Current Liabilities 2,107,631 1,580,010
2.01.01 Social and labor obligations 5,947 8,424
2.01.01.02 Labor Obligations 5,947 8,424
2.01.02 Trade payables 4,860 3,473
2.01.02.01 Domestic Trade Payables 4,860 3,473
2.01.03 Tax Obligations 560 709
2.01.03.01 Federal Tax Liabilities 560 709
2.01.03.01.01
Income taxes and contributions
payable
560 709
2.01.04 Loans and Financing 2,091,183 1,562,323
2.01.04.01 Loans and Financing 2,091,183 1,562,211
2.01.04.01.01 In local currency 2,091,183 1,562,211
2.01.04.02 Debentures 0 112
2.01.04.02.02 Interest 0 112
2.01.05 Other liabilities 5,081 5,081
2.01.05.02 Other 5,081 5,081
2.01.05.02.07 Profit Sharing 4,990 4,990
2.01.05.02.09 Other liabilities 91 91
2.02 Noncurrent Liabilities 218,227 703,232
2.02.01 Loans and Financing 172,495 660,656
2.02.01.01 Loans and Financing 172,495 655,417
2.02.01.01.01 In local currency 172,495 655,417
2.02.01.02 Debentures 0 5,239
2.02.01.02.01 Principal 0 4,605
2.02.01.02.02 Interest 0 634
2.02.02 Other liabilities 44,663 34,489
2.02.02.01 Related-Party Transactions 44,663 34,489
2.02.02.01.04 Debts with Other Related Parties 44,663 34,489
2.02.04 Provisions 1,069 8,087
2.02.04.02 Other Provisions 1,069 8,087
2.02.04.02.05 Negative Equity 1,069 8,087
2.03 Shareholders Equity 2,411,047 2,468,743
2.03.01 Realized Capital 4,652,273 4,532,313
2.03.02 Capital Reserves 353,865 350,514
2.03.02.04 Options Awarded 353,865 350,514
2.03.05
Retained Earnings/Accumulated
Losses
-2,545,011 -2,360,800
2.03.06 Equity Appraisal Adjustments -50,080 -53,284

Eneva S.A.


Statement of Income


Account Code
Account
Description
Current
Quarter
4/1/2014 to
6/30/2014
Accrued Value of
the Current Year
1/1/2014 to
6/30/2014
Same Quarter
of the Prior Year
4/1/2013 to
6/30/2013
Accrued Value of
the Prior Year
1/1/2013 to
6/30/2013
3.04
Operating
Income/Expenses
-62,698 -104,287 -156,204 -376,597
3.04.02
General and
Administrative
Expenses
-13,289 -41,613 -29,879 -53,590
3.04.02.01
Personnel and
Management
-4,898 -18,185 -16,484 -27,605
3.04.02.02 Other Expenses -793 -2,032 -1,347 -2,607
3.04.02.03 Outsourced Services -5,514 -17,439 -10,565 -20,361
3.04.02.04
Depreciation and
Amortization
-580 -1,105 -452 -905
3.04.02.05 Leasing and Rentals -1,504 -2,852 -1,031 -2,112
3.04.04
Other Operating
Income
806 22,676 961 975
3.04.04.01
Sale of PGN (OGX
Maranho)
0 21,858 0 0
3.04.04.02 Other 806 818 961 975
3.04.05
Other Operating
Expenses
-1,593 -1,722 -2,885 -3,925
3.04.05.01 Unsecured Liability -171 -135 -2,883 -3,923
3.04.05.02
Provision for
investment losses
-27 -192 0 3
3.04.05.03
Losses on the Sale of
Assets
-1,395 -1,395 -2 -5
3.04.06
Equity in Net
Income of Subsidiaries
-48,622 -83,628 -124,401 -320,057
3.05
Earnings before
financial income/loss
and tax
-62,698 -104,287 -156,204 -376,597
3.06
Financial
Income/Loss
-49,581 -79,924 -77,046 -107,554
3.06.01 Financial Revenue 25,954 88,706 29,068 44,049
3.06.01.01
Exchange Variance
Gain
3,186 22,323 606 4,012
3.06.01.02
Interest-earning
bank deposits
1,362 2,821 27,118 31,431
3.06.01.03
Derivative Financial
Instruments
-4,605 4,431 10,474 9,031
3.06.01.04
Fair value of
debentures
0 0 -175 -426
3.06.01.05
Other Financial
Revenue
95 156 0 1
3.06.01.06 Interest on loans 25,916 58,975 -8,955 0
3.06.02 Financial Expenses -75,535 -168,630 -106,114 -151,603
3.06.02.01
Exchange Variance
Loss
-150 -15,299 -10,780 -12,760
3.06.02.02
Derivative Financial
Instruments
-4,124 -4,124 212 -2,619
3.06.02.03
Debenture
Interest/Cost
-185 -396 -149 -362
3.06.02.05 Debt Charges -69,406 -144,828 -32,438 -55,788
3.06.02.06
Other Financial
Expenses
-1,670 -3,983 -62,959 -80,074
3.07
Earnings before tax
on net income
-112,279 -184,211 -233,250 -484,151

3.09
Net Income from
Continued Operations
-112,279 -184,211 -233,250 -484,151
3.11
Net Income/Loss for
the Period
-112,279 -184,211 -233,250 -484,151
3.99
Earnings per Share -
(Reais / Share)
3.99.01
Basic Earnings per
Share
3.99.01.01 Common -0.15982 -0.26221 -0.40321 -0.83694

Eneva S.A.


Statement of Comprehensive Income

(Thousands of Reais)

Account
Code
Account Description
Current
Quarter
4/1/2014 to
6/30/2014
Accrued
Value of the
Current Year
1/1/2014 to
6/30/2014
Same
Quarter of
the Prior
Year
4/1/2013 to
6/30/2013
Accrued
Value of the
Prior Year
1/1/2013 to
6/30/2013
4.01 Net Income for the Period (112.279) (184.211) (233.250) (484.151)
4.02 Other Comprehensive Income (1.349) (2.115) (3.569) (5.333)
4.02.01 Accumulated Translation Adjustments - - 483 (617)
4.02.02 Equity Appraisal Adjustments - - - -
4.02.03 Effective portion of the changes in fair value of cash flow hedges - hedge accounting (2.044) (3.204) (6.140) (7.145)
4.02.04 Deferred income and social contribution taxes - hedge accounting 695 1.089 2.088 2.429
4.03 Comprehensive Income for the Period (113.628) (186.326) (236.819) (489.484)

Eneva S.A.


Statement of Cash Flows - Indirect Method


Accrued Value
of the Current
Year 1/1/2014 to
6/30/2014
Accrued Value
of the Prior Year
1/1/2013 to
6/30/2013
6.01 Net Cash from Operating Activities 127,056 (135,452)
6.01.01 Cash Provided by Operating Activities (18,295) (116,955)
6.01.01.01 Net income/loss before IR and CSLL (184,211) (484,151)
6.01.01.02 Depreciation and Amortization 1,105 905
6.01.01.03 Equity in net income of subsidiary and associated companies 83,628 320,057
6.01.01.04 Operations with derivative financial instruments (307) (6,412)
6.01.01.05 Stock Options Awarded 6,555 22,666
6.01.01.06 Amortization of deferred charges - -
6.01.01.07 Investment devaluation 192 (3)
6.01.01.08 Provision for Unsecured Liabilities 135 3,923
6.01.01.09 Provision for Disassembly - -
6.01.01.10 Provision for investment losses - -
6.01.01.11 Deferred income and social contribution liabilities, net - -
6.01.01.12 Current income and social contribution taxes - -
6.01.01.13 Debenture Interest/Cost 396 362
6.01.01.14 Fair value of debentures - 426
6.01.01.15 Interest on loans and related parties 73,055 25,272
6.01.01.17 Equity Appraisal Adjustment - -
6.01.01.18 Other 1,157 -
6.01.02 Changes in Assets and Liabilities 152,369 116
6.01.02.01 Other Advances (181) (90)
6.01.02.02 Prepaid Expenses - -
6.01.02.03 Accounts Receivable - -
6.01.02.05 Recoverable Taxes (5,721) 420
6.01.02.06 Inventory - -
6.01.02.07 Deferred Taxes - -
6.01.02.09 Taxes, Duties and Contributions (149) 2,986
6.01.02.10 Trade payables 1,387 4,618
6.01.02.11 Provisions and payroll charges (2,478) 949
6.01.02.12 Accounts Payable - -
6.01.02.13 CCC subsidies receivable - -
6.01.02.14 Related Parties 159,511 (8,767)
6.01.02.15 AFAC to subsidiaries - -
6.01.03 Other (7,018) (18,613)
6.02 Net Cash from Investment Activities (308,284) (583,123)
6.02.01 Acquisition of PPE and intangible assets (856) (356)
6.02.02 Write-off of PPE and intangible assets - -
6.02.03 Securities - -
6.02.04 Capital contribution/AFAC in investments (243,476) (358,491)
6.02.05 Cash from sale of PP&E and intangible assets - -
6.02.06 AFAC to associated companies - -

6.02.07 Debt to related parties (63,950) (223,443)
6.02.08 Dividends - 2,040
6.02.09 Contractual Retentions - -
6.02.10 Escrow Deposits (2) (2,873)
6.03 Net Cash from Financing Activities 83,083 587,813
6.03.01 Financial Instruments (4,124) (1,045)
6.03.02 Capital Increase - 540
6.03.03 Advanced for future capital increase 119,959 -
6.03.04 Settlement of the principal - Financing (200,000) (300,000)
6.03.07 Loans and Financing Obtained 172,995 888,605
6.03.08 Capital increase (decrease) deriving from minority interests - -
6.03.10 Issuance (payment) of debentures (5,747) (287)
6.04 Exchange Variance on Cash and Cash Equivalents - -
6.05 Increase (Decrease) in Cash and Cash Equivalents (98,145) (130,762)
6.05.01 Opening Balance of Cash and Cash Equivalents 110,156 206,263
6.05.02 Closing Balance of Cash and Cash Equivalents 12,011 75,501

Eneva S.A.


Statement of Changes in Equity
Period from 01/01/2014 to 06/30/2014


Account
Code
Account Description
Paid-in
share
capital
Capital
Reserves,
Options
Awarded
and
Treasury
Stock
Profit
Reserves
Retained
Earnings or
Accumulated
Losses
Other
Comprehe
nsive
Income
Shareholders
Equity
5.01 Opening Balances 4.532.314

350.514

-

(2.360.800)

(53.284) 2.468.744
5.02 Prior-year Adjustments

-

-

-

-

- -
5.03 Adjusted Opening Balances 4.532.314

350.514

-

(2.360.800)

(53.284) 2.468.744
5.04 Capital Transactions with Partners

119.959

3.351

-

-

- 123.310
5.04.01 Capital Increases

119.959

-

-

-

- 119.959
5.04.02 Stock Issuance Expense

-

-

-

-

- -
5.04.03 Awarded Options Recognized

-

3.351

-

-

- 3.351
5.04.04 Treasury Stock Acquired

-

-

-

-

- -
5.04.05 Treasury Stock Sold

-

-

-

-

- -
5.04.06 Dividends

-

-

-

-

- -
5.04.07 Interest on Shareholders Equity

-

-

-

-

- -
5.04.08 Adjustment for effect of spin-off

-

-

-

-

- -
5.05 Total Comprehensive Income

-

-

-

(184.211)

3.204 (181.007)
5.05.01 Net Income for the Period

-

-

-

-

- -
5.05.02 Other Comprehensive Income

-

-

-

(184.211)

3.204 (181.007)
5.05.02.01 Financial Instrument Adjustments

-

-

-

-

3.204 3.204
5.05.02.02 Tax on Financial Instrument Adjustments

-

-

-

-

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

-

-

-

-

- -
5.05.02.04 Translation Adjustments in the Period

-

-

-

-

- -
5.05.02.05
Taxes on Translation Adjustments in the
Period

-

-

-

-

- -
5.05.02.06 Loss for the Period

-

-

-

(184.211)

- (184.211)
5.05.03 Reclassification to Net Income

-

-

-

-

- -

-

-

-

-

- -
5.06 Internal Changes in Shareholders' Equity

-

-

-

-

- -
5.06.01 Creation of Reserves

-

-

-

-

- -
5.06.02 Realization of Revaluation Reserve

-

-

-

-

- -
5.06.03 Taxes on Realization of Revaluation Reserve

-

-

-

-

- -
5.07 Closing Balances 4.652.273

353.865

-

(2.545.011)

(50.080) 2.411.047

Eneva S.A.


Statement of Changes in Equity
Period from 01/01/2013 to 06/30/2013

Account
Code
Account Description
Paid-in
share
capital
Capital
Reserves,
Options
Awarded
and
Treasury
Stock
Profit
Reserves
Retained
Earnings or
Accumulated
Losses
Other
Comprehe
nsive
Income

Sharehold
ers Equity
5.01 Opening Balances

3.731.734

321.904

- (1.364.979)

(119.067)

2.569.592

-

-

-

-

-

-
5.03 Adjusted Opening Balances

3.731.734

321.904

- (1.364.979)

(119.067)

2.569.592
5.04 Capital Transactions with Partners

540

14.904

-

-

-

15.444

540

-

-

-

-

540

-

-

-

-

-

-

-

14.904

-

-

-

14.904

-

-

-

-

-

-

-

-

-

-

-

-
5.04.06 Dividends

-

-

-

-

-

-
5.04.07 Interest on Shareholders Equity

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(484.151)

7.762

(476.389)

-

-

-

-

-

-

-

-

-

(484.151)

7.762

(476.389)

-

-

-

-

7.145

7.145
5.05.02.02 Tax on Financial Instrument Adjustments

-

-

-

-

-

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

-

-

-

-

-

-
5.05.02.04 Translation Adjustments in the Period

-

-

-

-

-

-
5.05.02.05 Taxes on Translation Adjustments in the Period

-

-

-

-

-

-
5.05.02.06 Loss for the Period

-

-

-

(484.151)

617

(483.534)

-

-

-

-

-

-

-

-

-

-

-

-
5.06 Internal Changes in Shareholders' Equity

-

-

-

-

-

-

-

-

-

-

-

-
5.06.02 Realization of Revaluation Reserve

-

-

-

-

-

-
5.06.03 Taxes on Realization of Revaluation Reserve

-

-

-

-

-

-
5.07 Closing Balances

3.732.274

336.808

-

(1.849.130)

(111.305)

2.108.647

Eneva S.A.


Statement of Value Added


Accrued Value of
the Current Year
1/1/2014 to
6/30/2014
Accrued Value of
the Prior Year
1/1/2013 to
6/30/2013
7.01 Revenue - -
7.01.01 Sales of Goods, Products and Services - -
7.01.02 Other Revenue - -
7.01.03 Revenue relating to construction of company assets - -
7.01.04
Allowance/(Reversal of allowance) for doubtful
accounts - -
7.02 Consumables acquired from third parties (18.707) (22.622)
7.02.01 Cost of goods and services sold - -
7.02.02 Material, Energy, Outsourced Services and Other (18.707) (22.622)
7.02.03 Loss/Recovery of Assets - -
7.02.04 Other - -
7.03 Gross Added Value (18.707) (22.622)
7.04 Retentions (1.105) (905)
7.04.01 Depreciation, Amortization and Depletion (1.105) (905)
7.04.02 Other - -
7.05 Net Added Value Produced (19.812) (23.527)
7.06 Transferred Added Value 4.286 (283.940)
7.06.01 Equity in Net Income of Subsidiaries (83.628) (320.057)
7.06.02 Financial Revenue 2.977 40.037
7.06.03 Other 84.937 (3.920)
7.06.03.01 Derivative Financial Instruments 4.431 -
7.06.03.02 Provision for Unsecured Liabilities (135) (3.923)
7.06.03.03 Provision for Impairment loss - -
7.06.03.04 Provision for devaluation of investments (192) 3
7.06.03.05 Sale of PGN (OGX Maranho) 21.858 -
7.06.03.06 Interest on loans 58.975 -
7.07 Total Added Value to be Distributed (15.526) (307.467)
7.08 Distribution of Added Value (15.526) (307.467)
7.08.01 Personnel 18.185 27.605
7.08.01.01 Direct Remuneration 12.694 21.177
7.08.01.02 Benefits 610 2.987
7.08.01.03 F.G.T.S. 4.881 3.441
7.08.01.04 Other - -
7.08.02 Taxes, Duties and Contributions 366 88
7.08.02.01 Federal 366 88
7.08.02.02 State - -
7.08.02.03 Municipal - -
7.08.03 Interest Expenses 150.134 148.991
7.08.03.01 Interest 396 362
7.08.03.02 Rent 2.852 2.112
7.08.03.03 Other 146.886 146.517
7.08.03.03.01 Losses on derivative transactions 4.124 2.619
7.08.03.03.02 Advances to suppliers - -
7.08.03.03.03 Insurance 398 259
7.08.03.03.04 Exchange Variance (7.024) 8.748
7.08.03.03.05 Studies and Projects - -
7.08.03.03.06 Financial Expenses 150.207 135.866

7.08.03.03.07 Other (819) (975)
7.08.04 Interest earnings (184.211) (484.151)
7.08.04.01 Interest on Shareholders Equity - -
7.08.04.02 Dividends - -
7.08.04.03 Retained Earnings/Loss for the Period (184.211) (484.151)
7.08.05 Other - -

Eneva S.A.


Consolidated Balance Sheet - Assets


Current Quarter
6/30/2014
Previous Year
12/31/2013
1 Total Assets 8.400.491 9.689.212

1.01 Current Assets 743.720 747.842

1.01.01 Cash and Cash Equivalents 87.773 277.582

1.01.01.01 Cash and Bank deposits 47.504 16.493

1.01.01.02 Fundo Multimercado MPX 63 38.467 202.444

1.01.01.03 Bradesco Corporate FIC FI Referenciado DI Federal - -

1.01.01.04 CDB 1.802 58.645

1.01.01.05 Other Fixed-Income Investments - -

1.01.02 Short-term Investments - -

1.01.02.01 Short-term investments valued at Fair Value - -

1.01.02.01.01 Marketable Securities - -

1.01.02.01.02 Available-for-sale securities - -

1.01.02.01.03 Securities - -

1.01.02.02 Short-term investments valued at amortized cost - -

1.01.02.02.01 Securities Held to Maturity - -

1.01.03 Accounts Receivable 214.205 294.396

1.01.03.01 Trade accounts receivable 214.205 294.396

1.01.03.02 Other Accounts Receivable - -

1.01.04 Inventories 66.729 78.376

1.01.05 Agricultural Assets - -

1.01.06 Recoverable Taxes 28.777 47.651

1.01.06.01 Current Taxes Recoverable 28.777 47.651

1.01.07 Prepaid Expenses 14.514 9.825

1.01.08 Other Current Assets 331.722 40.012

1.01.08.01 Noncurrent Assets for Sale 303.913 -

1.01.08.02 Assets of Discontinued Operations - -

1.01.08.03 Other 27.809 40.012

1.01.08.03.01 Other Advances 7.048 5.001

1.01.08.03.03 Gain on Derivatives - 4.171

1.01.08.03.04 Escrow Deposits 39 38

1.01.08.03.05 CCC subsidies receivable 20.722 30.802

1.01.08.03.06 Other Accounts Receivable - -

1.02 Noncurrent Assets 7.656.771 8.941.370

1.02.01 Long-Term Assets 1.215.574 966.682

1.02.01.01 Short-term investments valued at Fair Value - -

1.02.01.01.01 Marketable Securities - -

1.02.01.01.02 Available-for-sale securities - -

1.02.01.02 Short-term investments valued at amortized cost - -

1.02.01.02.01 Securities Held to Maturity - -

1.02.01.03 Accounts Receivable - -

1.02.01.03.01 Trade accounts receivable - -

1.02.01.03.02 Other Accounts Receivable - -

1.02.01.04 Inventories - -

1.02.01.05 Agricultural Assets - -

1.02.01.06 Deferred Taxes 218.992 302.327

1.02.01.06.01 Deferred Income and Social Contribution Taxes 218.992 302.327

1.02.01.07 Prepaid Expenses 2.017 2.905

1.02.01.08 Related-party Credits - -

1.02.01.08.01 Credits with Associated Companies - -

1.02.01.08.03 Credits with Controlling Shareholders - -

1.02.01.08.04 Other Related-party Credits - -

1.02.01.09 Other Noncurrent Assets 994.565 661.450

1.02.01.09.01 Noncurrent Assets for Sale - -

1.02.01.09.02 Assets of Discontinued Operations - -

1.02.01.09.03 Gain on Derivatives - -

1.02.01.09.04 Escrow Deposits 171.081 118.606

1.02.01.09.05 CCC Subsidies Receivable - -

1.02.01.09.07 Recoverable Taxes 35.487 14.614

1.02.01.09.08 Accounts receivable from other related parties 13.858 218.680

1.02.01.09.09 AFAC at joint ventures 7.620 150

1.02.01.09.11 Loan with joint ventures 586.820 191.968

1.02.01.09.12 Accounts receivable from joint ventures 171.095 117.372

1.02.01.09.13 Embedded derivatives 8.602 -

1.02.01.09.14 Other Accounts Receivable 2 60

1.02.01.09.15 Securities - -

1.02.02 Investments 1.230.385 941.853

1.02.02.01 Equity Interests 1.230.385 941.853

1.02.02.01.01 Interests in Associated Companies 87.674 51.899

1.02.02.01.04 Other Equity Interests 1.142.711 889.954

1.02.02.02 Property for Investment - -

1.02.03 Property, plant and equipment 5.004.608 6.819.454

1.02.03.01 Property, plant and equipment in operation - -

1.02.03.02 Leased property, plant and equipment - -

1.02.03.03 Property, plant and equipment in progress - -

1.02.04 Intangible assets 206.204 213.381

1.02.04.01 Intangible assets - -

1.02.04.01.01 Concession Agreement - -

1.02.04.02 Goodwill - -

Eneva S.A.


Consolidated Balance Sheet - Liabilities


Current Quarter
6/30/2014
Previous Year
12/31/2013
2 Total Liabilities 8.400.491 9.689.212
2.01 Current Liabilities 3.659.090 2.978.859
2.01.01 Social and labor obligations 13.719 16.770
2.01.01.01 Payroll Obligations - -
2.01.01.02 Labor Obligations 13.719 16.770
2.01.02 Trade payables 350.716 331.216
2.01.02.01 Domestic Trade Payables 350.716 331.216
2.01.02.02 Foreign Trade payables - -
2.01.03 Tax Obligations 24.443 45.934
2.01.03.01 Federal Tax Liabilities 24.443 45.934
2.01.03.01.01 Income taxes and contributions payable 24.443 45.934
2.01.03.02 State Tax Liabilities - -
2.01.03.03 Municipal Tax Liabilities - -
2.01.04 Loans and Financing 3.143.222 2.408.254
2.01.04.01 Loans and Financing 3.143.222 2.408.142
2.01.04.01.01 In local currency 3.143.222 2.408.142
2.01.04.01.02 Foreign currency - -
2.01.04.02 Debentures - 112
2.01.04.02.01 Principal - -
2.01.04.02.02 Interest - 112
2.01.04.03 Financing through Financial Lease - -
2.01.05 Other liabilities 126.990 176.685
2.01.05.01 Related-Party Transactions - -
2.01.05.01.01 Debits with Associated Companies - -
2.01.05.01.03 Debits with Parent Companies - -
2.01.05.01.04 Debts with Other Related Parties - -
2.01.05.02 Other 126.990 176.685
2.01.05.02.01 Dividends and Interest on Shareholder's Equity Payable - -
2.01.05.02.02 Minimum Mandatory Dividend Payable - -
2.01.05.02.03 Expenses on Share Based Payments - -
2.01.05.02.04 Losses on Derivative Transactions - -
2.01.05.02.05 Contractual Retentions 57.091 84.789
2.01.05.02.06 Other Advances - -
2.01.05.02.07 Profit Sharing 5.064 8.148
2.01.05.02.08 Dividends Payable - -
2.01.05.02.09 Other liabilities 64.835 83.748
2.01.06 Provisions - -
2.01.06.01 Tax, Welfare and Civil Contingencies - -
2.01.06.01.01 Tax Provisions - -
2.01.06.01.02 Social Security and Labor Provisions - -
2.01.06.01.03 Provisions for Employee Benefits - -
2.01.06.01.04 Civil Provisions - -
2.01.06.02 Other Provisions - -
2.01.06.02.01 Provisions for Guarantees - -
2.01.06.02.02 Provision for Reorganization - -
2.01.06.02.03 Provisions for environmental and deactivation liabilities - -
2.01.07
Liabilities on Noncurrent Assets for Sale and Discontinued
Assets - -

2.01.07.01 Liabilities on Noncurrent Assets for Sale - -
2.01.07.02 Liabilities on Assets of Discontinued Operations - -
2.02 Noncurrent Liabilities 2.217.206 4.136.480
2.02.01 Loans and Financing 1.948.318 3.807.617
2.02.01.01 Loans and Financing 1.948.318 3.802.378
2.02.01.01.01 In local currency 1.948.318 3.802.378
2.02.01.01.02 Foreign currency - -
2.02.01.02 Debentures - 5.239
2.02.01.02.01 Principal - 4.605
2.02.01.02.02 Interest - 634
2.02.01.02.03 Embedded Derivatives - -
2.02.01.03 Financing through Financial Lease - -
2.02.02 Other liabilities 258.125 307.720
2.02.02.01 Related-Party Transactions 258.125 307.720
2.02.02.01.01 Debits with Associated Companies - -
2.02.02.01.03 Debits with Parent Companies - -
2.02.02.01.04 Debts with Other Related Parties 258.125 307.720
2.02.02.02 Other - -
2.02.02.02.01 Expenses on Share Based Payments - -
2.02.02.02.02 Advance for Future Capital Increase - -
2.02.02.02.03 Losses on Derivative Transactions - -
2.02.02.02.04 Devaluation of investments - -
2.02.03 Deferred Taxes 11.694 9.591
2.02.03.01 Deferred Income and Social Contribution Taxes 11.694 9.591
2.02.04 Provisions (931) 11.552
2.02.04.01 Tax, Welfare and Civil Contingencies - -
2.02.04.01.01 Tax Provisions - -
2.02.04.01.02 Social Security and Labor Provisions - -
2.02.04.01.03 Provisions for Employee Benefits - -
2.02.04.01.04 Civil Provisions - -
2.02.04.02 Other Provisions (931) 11.552
2.02.04.02.01 Provisions for Guarantees - -
2.02.04.02.02 Provision for Reorganization - -
2.02.04.02.03 Provisions for environmental and deactivation liabilities - -
2.02.04.02.04 Provision for Disassembly - 2.266
2.02.04.02.05 Unsecured Liability (931) 9.286
2.02.05
Liabilities on Noncurrent Assets for Sale and Discontinued
Assets - -
2.02.05.01 Liabilities on Noncurrent Assets for Sale - -
2.02.05.02 Liabilities on Assets of Discontinued Operations - -
2.02.06 Unappropriated Profits and Revenue - -
2.02.06.01 Unappropriated Profits - -
2.02.06.02 Unappropriated Revenue - -
2.02.06.03 Unappropriated Investment Subsidies - -
2.03 Consolidated Shareholders Equity 2.524.195 2.573.873
2.03.01 Realized Capital 4.652.273 4.532.313
2.03.02 Capital Reserves 353.865 350.514
2.03.02.01 Goodwill on Share Issuance - -
2.03.02.02 Special Goodwill Reserve under Merger - -
2.03.02.03 Sale of Subscription Bonus - -
2.03.02.04 Options Awarded 353.865 350.514
2.03.02.05 Treasury Stock - -
2.03.02.06 Advance for Future Capital Increase - -
2.03.02.07 Investments Reserve - -
2.03.02.08 Capital Reserves - -
2.03.03 Revaluation Reserves - -
2.03.04 Profit Reserves - -
2.03.04.01 Legal Reserve - -
2.03.04.02 Statutory Reserve - -
2.03.04.03 Reserve for Contingencies - -
2.03.04.04 Unrealized Profit Reserve - -
2.03.04.05 Profit Retention Reserve - -

2.03.04.06 Special Reserve for Undistributed Dividends - -
2.03.04.07 Tax Incentive Reserve - -
2.03.04.08 Additional Dividend Proposed - -
2.03.04.09 Treasury Stock - -
2.03.05 Retained Earnings/Accumulated Losses (2.558.792) (2.379.303)
2.03.06 Equity Appraisal Adjustments (50.080) (53.284)
2.03.07 Accumulated Translation Adjustments - -
2.03.08 Other Comprehensive Income - -
2.03.09 Minority Interests 126.929 123.633

Eneva S.A.


Consolidated Statement of Income


Account
Code
Account Description
Current
Quarter
4/1/2014 to
6/30/2014
Accrued
Value of the
Current Year
1/1/2014 to
6/30/2014
Same Quarter
of the Prior
Year 4/1/2013
to 6/30/2013
Accrued Value
of the Prior
Year 1/1/2013
to 6/30/2013
3.01 Revenue from goods sold and services rendered 489.306 1.076.078 395.133 591.232
3.02 Cost of goods and/or services sold (439.603) (934.382) (418.331) (730.940)
3.03 Gross Profit 49.703 141.696 (23.198) (139.708)
3.04 Operating Income/Expenses (24.167)

(58.596)

(88.690) (212.220)
3.04.01 Sales Expenses - - - -
3.04.02 General and Administrative Expenses (18.129) (54.921) (41.983) (81.012)
3.04.02.0
1 Personnel and Management (6.167) (21.459) (18.845) (39.142)
3.04.02.0
2 Other Expenses (1.462)

(3.307) (2.653) (5.009)
3.04.02.0
3 Outsourced Services (8.050)

(25.408) (18.222) (32.283)
3.04.02.0
4 Depreciation and Amortization

(801)

(1.570) (652)

(1.290)
3.04.02.0
5 Leasing and Rentals (1.649)

(3.177) (1.611) (3.288)
3.04.02.0
6 General and Administrative Expenses - - - -
3.04.02.0
7 Expenses incurred on Share Options Awarded - - - -
3.04.03 Impairment of assets - - - -
3.04.04 Other Operating Income 42.930 64.802 3.471 3.983
3.04.04.0
1 Sale of PGN (OGX Maranho) - 21.858 - -
3.04.04.0
2 Other 42.930 42.944 - -
3.04.05 Other Operating Expenses (13.749)

(25.896) (5.064) (6.587)
3.04.05.01 Unsecured liability 1

111 (2.604) (3.578)
3.04.05.0
2 Provision for investment losses 546

(1.221)

(26)

(23)
3.04.05.0
3 Losses on the sale of assets (1.395)

(1.395) (2.434) (2.986)
3.04.05.0
5 Write-off of CCC Benefit (407) (5.945) - -
3.04.05.0
6 Other - - - -
3.04.05.0
7 Adomp/CCEE Penalty (12.494) (17.446) - -
3.04.06 Equity in Net Income of Subsidiaries (35.219)

(42.581) (45.114) (128.604)
3.05 Earnings before financial income/loss and tax 25.536 83.100 (111.888) (351.928)
3.06 Financial Income/Loss (134.541) (258.833) (162.929) (240.756)
3.06.01 Financial Revenue 15.190 65.706 19.940 32.641
3.06.01.01 Exchange Variance Gain 4.121 25.489

682 4.570
3.06.01.0
2 Interest-earning bank deposits 5.877 11.310 12.453 17.374
3.06.01.03 Derivative Financial Instruments (4.605) 4.431 10.474 9.031
3.06.01.0
4 Fair value of debentures - -

(175)

(426)
3.06.01.05 Other Financial Revenue 1.018 1.891 1.461 2.092
3.06.01.0 Interest on loans 8.779 22.585 (4.955) -

6
3.06.02 Financial Expenses (149.731) (324.539) (182.869) (273.397)
3.06.02.0
1 Exchange Variance Loss

(192)

(16.204) (12.919) (15.182)
3.06.02.0
2 Derivative Financial Instruments (4.124)

(4.124) 3.162 912
3.06.02.0
3 Debenture Interest/Cost

(185)

(396)

(149)

(362)
3.06.02.0
5 Debt charges (134.165) (283.582)

(86.924) (145.012)
3.06.02.0
6 Other Financial Expenses (11.065)

(20.233)

(86.039) (113.753)
3.07 Earnings before tax on net income (109.005) (175.733) (274.817) (592.684)
3.08 Income and social contribution taxes on profit (1.439) (5.276) 41.329 102.135
3.08.01 Current 187

(2.546)

(336)

(336)
3.08.02 Deferred charges (1.626)

(2.730) 41.665 102.471
3.09 Net Income from Continued Operations (110.444)

(181.009) (233.488) (490.549)
3.10 Net Income from Discontinued Operations - - - -
3.10.01
Net income (loss) for the year from discontinued
operations - - - -
3.10.02 Net Gains/Losses on Assets of Discontinued Operations - - - -
3.11 Consolidated Net Income/Loss for the Period (110.444)

(181.009) (233.488) (490.549)
3.11.01 Attributed to Partners of the Parent Company (112.280) (184.211) (233.250) (484.151)
3.11.02 Attributed to Minority Partners 1.836

3.202

(238) (6.398)
3.99 Earnings per Share - (Reais / Share) - - - -
3.99.01 Basic Earnings per Share - - - -
3.99.01.01 Common 0,15721 0,25765 (0,40362)

(0,84800)
3.99.02 Diluted Earnings per Share - - - -

Eneva S.A.


Consolidated Statement of Comprehensive Income


Account
Code
Account Description
Current
Quarter
4/1/2014 to
6/30/2014
Accrued
Value of the
Current
Year
1/1/2014 to
6/30/2014
Same
Quarter of
the Prior
Year
4/1/2013 to
6/30/2013
Accrued
Value of the
Prior Year
1/1/2013 to
6/30/2013
4.01 Consolidated Net Income for the Period

(110.444)

(181.009)

(233.488)

(490.549)
4.02 Other Comprehensive Income

(1.349)

(2.115)

(3.569)

(5.333)
4.02.01 Accumulated Translation Adjustments

-

-

483

(617)
4.02.02 Equity Appraisal Adjustments

-

-

-

-
4.02.03
Effective portion of the changes in fair value of cash flow hedges -
hedge accounting

(2.044)

(3.204)

(6.140)

(7.145)
4.02.04 Deferred income and social contribution taxes - hedge accounting

695

1.089

2.088

2.429
4.03 Consolidated Comprehensive Income for the Period

(111.793)

(183.124)

(237.057)

(495.882)
4.03.01 Attributed to Partners of the Parent Company

(113.629)

(186.326)

(236.819)

(489.484)
4.03.02 Attributed to Minority Partners

1.836

3.202

(238)

(6.398)

Eneva S.A.


Consolidated Statement of Cash Flows - Indirect Method


Accrued Value of
the Current Year
1/1/2014 to
6/30/2014
Accrued Value of
the Prior Year
1/1/2013 to
6/30/2013
6.01 Net Cash from Operating Activities (63.410) 112.773
6.01.01 Cash Provided by Operating Activities 40.346 (337.668)
6.01.01.01 Loss for the Period (175.733) (592.684)
6.01.01.02 Depreciation and Amortization 96.454 44.519
6.01.01.03 Equity in Net Income of Subsidiaries 42.581 128.604
6.01.01.04 Operations with derivative financial instruments (307) (9.943)
6.01.01.05 Stock Options Awarded 6.555 22.666
6.01.01.06 Amortization of deferred charges - -
6.01.01.07 Investment devaluation 1.221 23
6.01.01.08 Provision for Unsecured Liabilities (111) 3.578
6.01.01.09 Provision for Disassembly (2.266) 55
6.01.01.10 Minority Interests - -
6.01.01.11 Deferred income and social contribution liabilities, net - -
6.01.01.12 Current income and social contribution taxes - -
6.01.01.13 Debenture Interest/Cost 396 362
6.01.01.14 Fair value of debentures - 426
6.01.01.15 Interest on loans and related parties 70.391 65.485
6.01.01.16 Sale of PGN interest (OGX Maranho) 21.858 -
6.01.01.17 Equity Appraisal - -
6.01.01.18 Other (20.693) (759)
6.01.02 Changes in Assets and Liabilities 213.398 476.240
6.01.02.01 Other Advances (2.047) (3.467)
6.01.02.02 Prepaid Expenses (3.801) (1.841)
6.01.02.03 Accounts Receivable 80.192 (331.220)
6.01.02.05 Recoverable Taxes (1.999) (41.682)
6.01.02.06 Inventory 11.647 53.569
6.01.02.07 Deferred Taxes - -
6.01.02.09 Taxes, Duties and Contributions (21.492) 86.977
6.01.02.10 Trade payables 19.500 538.757
6.01.02.11 Provisions and payroll charges (3.051) 2.421
6.01.02.12 Accounts Payable 22.865 4.263
6.01.02.13 CCC subsidies receivable 10.079 8.034
6.01.02.14 Debts / Credits with related parties 101.505 160.429
6.01.02.15 AFAC to subsidiaries - -
6.01.03 Other (317.154) (25.799)
6.01.03.01 Changes in Investments - -
6.01.03.02 Other Assets and Liabilities (13.241) (25.799)
6.01.03.04 Asset held for sale - Pecm II (303.913) -
6.02 Net Cash from Investment Activities 952.883 (1.226.254)
6.02.01 Acquisition of PPE and intangible assets (173.265) (999.229)
6.02.02 Write-off of PPE and intangible assets - -
6.02.03 Securities - (5.351)
6.02.04 Capital contribution/AFAC in investments (332.320) (138.301)
6.02.05 Cash resulting from sale of property, plant and equipment and intangible assets (1.036) (2.978)
6.02.06 AFAC at associated companies and joint ventures - -
6.02.07 Debt to related parties (382.113) (24.881)

6.02.08 Dividends - -
6.02.09 Contractual Retentions (27.699) (33.623)
6.02.10 Escrow Deposits (52.477) (21.891)
6.02.11 PPE and intangible of asset held for sale - Pecm II 1.921.793 -
6.03 Net Cash from Financing Activities (1.079.283) 734.919
6.03.01 Financial Instruments (4.124) (12.679)
6.03.02 Capital Increase - 540
6.03.03 Advanced for future capital increase 119.959 -
6.03.04 Settlement of the principal - Financing (315.014) (325.575)
6.03.07 Loans and Financing Obtained 198.446 1.068.482
6.03.08 Capital increase deriving from noncontrolling interests - 6.398
6.03.09 Loan and financing - held for sale Pecm II (1.072.803) -
6.03.10 Issuance (payment) of debentures (5.747) (287)
6.03.12 Dividends - (1.960)
6.04 Exchange Variance on Cash and Cash Equivalents - -
6.05 Increase (Decrease) in Cash and Cash Equivalents (189.810) (378.562)
6.05.01 Opening Balance of Cash and Cash Equivalents 277.583 519.277
6.05.02 Closing Balance of Cash and Cash Equivalents 87.773 140.715

Eneva S.A.


Consolidated Statement of Changes
in Equity
Period from 01/01/2014 to
06/30/2014


Account
Code
Account Description
Paid-in
share
capital
Capital
Reserves,
Options
Awarded
and
Treasury
Stock
Profit
Reserves
Retained
Earnings or
Accumulated
Losses
Other
Comprehensiv
e Income

Shareholder
s Equity

Minorit
y
interest
s

Consolidat
ed
Sharehold
ers Equity

4.532.313

350.514

- (2.379.303)

(53.284) 2.450.240

123.633 2.573.873

-

-

- -

- -

- -

4.532.313

350.514

- (2.379.303)

(53.284) 2.450.240

123.633 2.573.873
5.04
Capital Transactions with
Partners

119.960

3.351

- 4.722 -

128.033

- 128.033

119.960

-

- -

- 119.960

- 119.960

-

-

- -

- -

- -
5.04.03
Awarded Options
Recognized

-

3.351

- -

- 3.351

- 3.351

-

-

- -

- -

- -

-

-

- -

- -

- -
5.04.06 Dividends

-

-

- -

- -

- -
5.04.07
Interest on Shareholders
Equity

-

-

- -

- -

- -
5.04.08
Adjustment for effect of
spin-off

-

-

- -

- -

- -
5.04.09 Deferred Asset Adjustment

-

-

- 4.722

- 4.722

- 4.722
5.05
Total Comprehensive
Income

-

-

- (184.211)

3.204 (181.007)

3.296 (177.711)

-

-

- -

- -

- -
5.05.02
Other Comprehensive
Income

-

-

- (184.211)

3.204 (181.007)

3.296 (177.711)
5.05.02.01
Financial Instrument
Adjustments

-

-

- -

3.204 3.204

- 3.204
5.05.02.02
Tax on Financial
Instrument Adjustments

-

-

- -

- -

- -
5.05.02.03
Equity Income on Comp.
Income Associated
companies

-

-

- -

- -

- -
5.05.02.04
Translation Adjustments in
the Period

-

-

- -

- -

- -
5.05.02.05
Taxes on Translation
Adjustments in the Period

-

-

- -

- -

- -
5.05.02.07 Loss for the period

-

-

- (184.211)

- (184.211)

3.202 (181.009)
5.05.02.08 Minority interest

-

-

- -

- -

94 94
5.05.03
Reclassification to Net
Income

-

-

- -

- -

- -
5.05.03.01
Adjustments

-

-

- -

- -

- -
5.06
Internal Changes in
Shareholders' Equity

-

-

- -

- -

- -


-

-

- -

- -

- -
5.06.02
Realization of Revaluation
Reserve

-

-

- -

- -

- -
5.06.03
Taxes on Realization of
Revaluation Reserve

-

-

- -

- -

- -

4.652.273

353.865

- (2.558.792)

(50.080) 2.397.266

126.929 2.524.195

Eneva S.A.


Consolidated Statement of Changes in
Equity

Period from 01/01/2013 to 06/30/2013


Account
Code
Account Description
Paid-in
share
capital
Capital
Reserves
, Options
Awarded
and
Treasury
Stock
Profit
Reserves
Retained
Earnings
or
Accumul
ated
Losses
Other
Compreh
ensive
Income

Sharehol
ders
Equity
Minority
interests

Consolid
ated
Sharehol
ders
Equity

3.731.734

321.904

-

(1.384.97
1)

(119.067)

2.549.60
0

154.975

2.704.575

-

-

-

-

-

-

-

-

3.731.734

321.904

-

(1.384.97
1)

(119.067)

2.549.60
0

154.975

2.704.575
5.04
Capital Transactions with
Partners

540

14.904

-

743

-

16.187

-

16.187

540

-

-

-

-

540

-

540

-

-

-

-

-

-

-

-

-

14.904

-

-

-

14.904

-

14.904

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
5.04.06 Dividends

-

-

-

-

-

-

-

-
5.04.07
Interest on Shareholders
Equity

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
5.04.09 Deferred Asset Adjustment

-

-

-

743

-

743

-

743

-

-

-

(484.151)

7.762

(476.389)

(10.868)

(487.257)

-

-

-

-

-

-

-

-

-

-

-

(484.151)

7.762

(476.389)

(10.868)

(487.257)
5.05.02.01
Adjustments

-

-

-

-

7.145

7.145

-

7.145
5.05.02.02
Tax on Financial Instrument
Adjustments

-

-

-

-

-

-

-

-
5.05.02.03
Equity Income on Comp.
Income Associated companies

-

-

-

-

-

-

-

-
5.05.02.04
Translation Adjustments in the
Period

-

-

-

-

617

617

-

617
5.05.02.05
Taxes on Translation
Adjustments in the Period

-

-

-

-

-

-

-

-
5.05.02.07 Loss for the period

-

-

-

(484.151)

-

(484.151)

(6.398)

(490.549
)
5.05.02.08 Minority interest

-

-

-

-

-

-

(4.470)

(4.470)

-

-

-

-

-

-

-

-
5.05.03.01
Adjustments

-

-

-

-

-

-

-

-

5.06
Internal Changes in
Shareholders' Equity

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
5.06.02
Realization of Revaluation
Reserve

-

-

-

-

-

-

-

-
5.06.03
Taxes on Realization of
Revaluation Reserve

-

-

-

-

-

-

-

-

3.732.274

336.808

-

(1.868.37
9)

(111.305)

2.089.39
8

144.107

2.233.50
5

Eneva S.A.


Consolidated Statement of Value Added


Accrued Value of
the Current Year
1/1/2014 to
6/30/2014
Accrued Value of
the Prior Year
1/1/2013 to
6/30/2013
7.01 Revenue (745.945) 1.546.646
7.01.01 Sales of Goods, Products and Services 1.076.078 591.231
7.01.02 Other Revenue - -
7.01.03 Revenue relating to construction of company assets (1.822.023) 955.415
7.01.04
Allowance/(Reversal of allowance) for doubtful
accounts - -
7.02 Consumables acquired from third parties (660.808) (641.493)
7.02.01 Cost of goods and services sold - -
7.02.02 Material, Energy, Outsourced Services and Other (660.808) (641.493)
7.02.03 Loss/Recovery of Assets - -
7.02.04 Other - -
7.03 Gross Added Value (1.406.753) 905.153
7.04 Retentions (96.454) (44.519)
7.04.01 Depreciation, Amortization and Depletion (96.454) (44.519)
7.04.02 Other - -
7.05 Net Added Value Produced (1.503.207) 860.634
7.06 Transferred Added Value 60.162 (104.134)
7.06.01 Equity in Net Income of Subsidiaries (42.581) (128.604)
7.06.02 Financial Revenue 13.200 28.071
7.06.03 Other 89.543 (3.601)
7.06.03.01 Derivative Financial Instruments 4.431 -
7.06.03.02 Provision for Unsecured Liabilities 111 (3.578)
7.06.03.03 Provision for Impairment loss - -
7.06.03.04 Provision for devaluation of investments (1.221) (23)
7.06.03.05 Sale of PGN (OGX Maranho) 21.858 -
7.06.03.06 Interest on loans 22.586 -
7.06.03.07 Contractual Penalty 41.778 -
7.07 Total Added Value to be Distributed (1.443.045) 756.500
7.08 Distribution of Added Value (1.443.045) 756.500
7.08.01 Personnel 45.428 52.889
7.08.01.01 Direct Remuneration 25.916 28.847
7.08.01.02 Benefits 7.622 13.952
7.08.01.03 F.G.T.S. 11.890 10.090
7.08.01.04 Other - -
7.08.02 Taxes, Duties and Contributions 6.002 (101.810)
7.08.02.01 Federal 6.002 (101.810)
7.08.02.02 State - -
7.08.02.03 Municipal - -
7.08.03 Interest Expenses (1.313.466) 1.295.970
7.08.03.01 Interest 396 362
7.08.03.02 Rent 174.805 70.882
7.08.03.03 Other (1.488.667) 1.224.726
7.08.03.03.01 Losses on Derivative Transactions 4.124 (912)
7.08.03.03.02 Advances to suppliers (1.822.023) 955.407
7.08.03.03.03 Insurance 11.081 1.843
7.08.03.03.04 Exchange Variance (9.285) 10.612

7.08.03.03.05 Studies and Projects - -
7.08.03.03.06 Financial Expenses 305.211 261.751
7.08.03.03.07 Other (1.166) (3.975)
7.08.03.03.08 CCEE Penalty 17.446 -
7.08.03.03.09 Write-off of CCC Benefit 5.945 -
7.08.04 Interest earnings (181.009) (490.549)
7.08.04.01 Interest on Shareholders Equity - -
7.08.04.02 Dividends - -
7.08.04.03 Retained Earnings/Loss for the Period (184.211) (484.151)
7.08.04.04 - Minority interests in retained earnings 3.202 (6.398)
7.08.05 Other - -

FEDERAL PUBLIC SERVICE
CVM BRAZILIAN SECURITIES COMMISSION
ITR Quarterly Information Corporate Legislation
COMMERCIAL AND INDUSTRIAL COMPANIES AND OTHER - as of 6/30/2014
1 de 17

02123-7 ENEVA S/A 04.423.567/0001-21

20.01 - OTHER INFORMATION CONSIDERED SIGNIFICANT TO THE COMPANY

Pursuant to the Company's Bylaws, the company, its shareholders and managers undertake to settle
through arbitration any and all disputes between them arising from, or in connection with, the
application, validity, effectiveness, interpretation, violation or effects of the rules contained in Brazilian
Corporation Law, the Company's By-Laws, regulations issued by the Brazilian Monetary Council, the
Brazilian Central Bank and the Brazilian Securities Commission (CVM), and any other regulations
applicable to the capital market in general, as well as those contained in the New Market Regulations,
the Regulations of the Market Chamber of Arbitration and New Market Agreement.

At June 30, 2014 the Companys share capital consisted of 702,524,469 common shares distributed
as follows:

CONSOLIDATED SHAREHOLDINGS OF CONTROLLING SHAREHOLDERS
MANAGERS AND FREE FLOAT
Position at 6/30/2014

Shareholder
Number of Common
Shares
(in units)

%
Total Number of
Shares
(in units)

%
Controlling Shareholder 434,005,449 61.78 434,005,449 61.78

Executives

Board of Directors
57,070 0.01 57,070 0.02
Executive Board 0 0.00 0 0.00

Audit Committee*
- - - -

Treasury Stock
0 0.00 0 0.00

Other Shareholders
268,461,950 38.21 268,461,950 38.20

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

Free Float 268,461,950 38.21 268,461,950 38.21
* At 6/30/2014 the Company did not have an Audit Committee.

The Company's capital was increased on 5/26/2011 by the Board of Directors' meeting held
3/24/2011, which raised the number of shares from 136,692,680 to 136,720,840, as a result of
subscription options being exercised.
2 de 17

02123-7 ENEVA S/A 04.423.567/0001-21


The Company's capital was increased in February 2012 by the Board of Directors' meeting held
2/29/2012, via the issuance of 9,633 new shares resulting from the conversion of 6,383 of the
21,735,744 debentures issued by the Company on June 15, 2011. The number of Company shares
accordingly rose from 136,720,840 to 136,730,473.

The Company's capital was increased in March 2012 by the Board of Directors' meeting held
3/21/2012, via the issuance of 984 new shares resulting from the conversion of 649 debentures and
the issuance of 7,040 new common shares, with no par value, resulting from the exercising of stock
options awarded under the Company's stock options program. The number of Company shares
accordingly rose from 136,730,473 to 136,738,497.

The Company's capital was increased in May 2012 by the Board of Directors' meeting held 5/9/2012
as a result of the (i) issuance of 4,112 new shares resulting from the conversion of 2,701 debentures
and (ii) the issuance of 125,620 new common shares, with no par value, resulting from the exercising
of stock options awarded under the Company's stock options program. The number of Company
shares accordingly rose from 136,738,497 to 136,868,229.

The capital was increased again the same month by the Board of Directors' meeting held 5/24/2012,
which ratified the issuance of 33,254,705 new common shares with no par value, resulting from the
conversion of 21,652,966 debentures. The number of Company shares accordingly rose from
136,868,229 to 170,122,934.

On 5/24/2012 the ENEVA Board of Directors approved a capital increase of R$ 1,000,000,063.00 via
the issuance of 22,623,796 new shares. However, the subscribed shares will only exist after the
capital increase has been concluded and subsequently ratified, which was concluded in July 2012
and ratified by the Board of Directors' meeting held July 25, 2012.

The Company's capital was increased in June 2012 by the Board of Directors' meeting held
6/15/2012, which ratified the issuance of 514 new common shares with no par value, resulting from
the conversion of 334 debentures. The number of Company shares accordingly rose from
170,122,934 to 170,123,448.

On 6/25/2012 the Board of Directors' meeting ratified the capital increase, approved by the Board of
Directors' meeting on 5/24/2012 at 11 AM, of R$ 1,000,000,063.00 (one billion and sixty-three reais),
within the authorized capital limit, as a result of the subscription and full payment of the 22,623,796
new common registered shares with no par value by E.ON AG ("E.ON"). The number of Company
shares accordingly rose from 170,123,448 to 192,747,244.

Pursuant to the minutes of the Extraordinary General Meeting held by the Company on 8/15/2012, the
shareholders in attendance unanimously approved the split of common shares issued by the
3 de 17

02123-7 ENEVA S/A 04.423.567/0001-21


Company, whereby each existing common share was split into 3 (three) shares of the same class.
ENEVA's shareholders are entitled to receive the split shares according to their shareholding at
Wednesday, August 15, 2012. The number of Company shares accordingly rose from 192,747,244 to
578,241,732.

The Company's capital was increased in January 2013 by the Board of Directors' meeting held
1/10/2013, ratifying the issuance of 147,480 new common shares, with no par value, resulting from
the exercising of stock options awarded under the Company's stock options program. The number of
Company shares accordingly changed to 578,389,212.

The Company's capital was increased in February 2013 by the Board of Directors' meeting held
2/6/2013, ratifying the issuance of 27,000 new common shares, with no par value, resulting from the
exercising of stock options awarded under the Company's stock options program. The number of
Company shares accordingly changed to 578,416,212.

However, there was a partial subscription of the capital increase, whereby the share capital as of
3/31/2013 stood at R$ 3,736,269,091.89, less than the figure presented in the minutes to the Board of
Directors' meeting held February 06, 2013. The remainder of the share capital was paid in after the
end of the first quarter, resulting in a share capital of R$ 3,736,354,722.02.

The Company's capital was increased in April 2013 by the Board of Directors' meeting held 4/5/2013,
ratifying the issuance of 34,500 new common shares, with no par value, resulting from the exercising
shares accordingly changed to 578,450,712. As a result of this resolution the Company's share capital
has changed from R$ 3,736,354,722.02 to R$ 3,736,468,820.55.

The Company's capital was increased in May 2013 by the Board of Directors' meeting held 5/8/2013,
ratifying the issuance of 29,250 new common shares, with no par value, resulting from the exercising
shares accordingly changed to 578,479,962. As a result of this resolution the Company's share capital
has changed from R$ 3,736,468,820.55 to R$ 3,736,568,320.85.

On 9/16/2013 the Board of Directors' meeting ratified the Company's capital increase, as approved by
the Board of Directors' meeting on July 03, 2013, of R$ 799,999,995.15, within the authorized capital
limit, as a result of the subscription and full payment of the 124,031,007 new common registered
shares with no par value. The number of Company shares accordingly rose from 578,479,962 to
702,510,969. The Company's share capital has accordingly changed from R$ 3,736,568,320.85 to R$
4,536,568,316.00.
4 de 17

02123-7 ENEVA S/A 04.423.567/0001-21


The Company's capital was increased in October 2013 by the Board of Directors' meeting held
10/21/2013, ratifying the issuance of 13,500 new common shares, with no par value, resulting from
the exercising of stock options awarded under the Company's stock options program. The number of
Company shares accordingly changed to 702,524,469. As a result of this resolution the Company's
share capital has changed from R$ 4,536,568,316.00 to R$ 4,536,608,413.70.

On 8/1/2014 the Board of Directors' meeting ratified the Company's capital increase, as approved by
the Board of Directors' meeting on 5/9/2014, of R$ 174,728,680.26, within the authorized capital limit,
as a result of the subscription and payment of the 137,581,638 new common registered shares with
no par value. The number of Company shares accordingly rose from 702,524,469 to 840,106,107.
The Company's share capital has accordingly changed from R$ 4,536,608,413.70 to R$
4,711,337,093.96. R$ 119,959,257.16 of the capital increase consists of the subscription of the joint
controlling shareholder E.ON, paid in on 5/20/2014.

Shareholdings of over 5% of the shares of each type and class in the Company, including those of
individuals

Company: ENEVA S.A. Position at 6/30/2014

Common shares*

Total
Shareholder
Quantity % Quantity %
Eike Fuhrken Batista
145,704,988 20.7

145,704,988 20.7
Centennial Asset Mining Fund LLC
20,208,840 2.9

20,208,840 2.9
Centennial Asset Brazilian Equity Fund LLC
1,822,065 0.3

1,822,065 0.3
E.ON
266,269,556 37.9

266,269,556 37.9
BNDESPAR
72,650,210 10.3

72,650,210 10.3
Other
195,868,810 27.9

195,868,810 27.9
Total 702,524,469 100

702,524,469 100
*ENEVA's share capital consists solely of common shares.

Distribution of share capital in our corporate shareholder (Company shareholder), including the
shareholdings of individuals

Company: Centennial Asset Mining Fund LLC Position at 6/30/2014

Quotas Total

Shareholder Quantity %

Quantity %
Eike Fuhrken Batista 1,000 100

1,000 100
5 de 17

02123-7 ENEVA S/A 04.423.567/0001-21


Total 1,000 100 1,000 100
Company: Centennial Asset Brazilian Equity Fund LLC Position at 6/30/2014
Quotas Total


Quantity %
Centennial Asset Mining Fund LLC 1,000 100

1,000 100
Total 1,000 100

1,000 100
To facilitate your comprehension a summary follows of the corporate changes ENEVA has undergone
in the period of one year:

On 5/27/2013 E.ON SE. and Mr. Eike Fuhrken Batista ("Parties), the controlling shareholder of
ENEVA, signed the Shareholders' Agreement ("Agreement"), by which the Parties established
the main terms and conditions that will govern their relationship as ENEVA shareholders, in
order for the Parties to share control of the Company (subject to the Agreement's severance
terms). E.ON and Mr. Eike Fuhrken Batista signed an Investment Agreement on March 27,
2013 for the acquisition by E.ON of ENEVA shares held by Mr. Eike Fuhrken Batista, followed
by a private capital increase of ENEVA, ratified on September 16, 2013.

At March 31, 2013 the Companys share capital consisted of 578,241,732 common shares distributed
as follows:

CONSOLIDATED SHAREHOLDINGS OF CONTROLLING SHAREHOLDERS
MANAGERS AND FREE FLOAT
Position at 6/30/2013

Shareholder
Number of Common
Shares
(in units)

%
Total Number of
Shares
(in units)

%
Controlling Shareholder
377,150,046 65.2 377,150,046 65.2

Executives

Board of Directors
98,085 0.02 98,085 0.02
Executive Board
521,400 0.09 521,400 0.09

Audit Committee*
- - - -

Treasury Stock
0 0.00 0 0.00
6 de 17

02123-7 ENEVA S/A 04.423.567/0001-21


Other Shareholders
200,710,431 34.7 200,710,431 34.7

Total 578,479,962 100 578,479,962 100

Free Float 200,710,431 34.7 200,710,431 34.7
*The Company's Annual Meeting did not convene the Audit Committee in FY 2012.

Shareholdings of over 5% of the shares of each type and class in the Company, including those of
individuals
7 de 17

02123-7 ENEVA S/A 04.423.567/0001-21


Company: ENEVA S.A. Position at 6/30/2013

Common shares

Total
Shareholder
Quantity % Quantity %
Eike Fuhrken Batista
145,704,988 25.2 145,704,988 25.2
Centennial Asset Mining Fund LLC
20,208,840 3.5 20,208,840 3.5
Centennial Asset Brazilian Equity Fund LLC
1,822,065 0.3 1,822,065 0.3
E.ON
209,414,153 36.2 209,414,153 36.2
BNDESPAR
59,823,537 10.3 59,823,537 10.3
Other
201,329,916 34.8 201,329,916 34.8
Total
578,479,962 100

578,479,962 100

Distribution of share capital in our corporate shareholder (Company shareholder), including the
shareholdings of individuals

Company: Centennial Asset Mining Fund LLC Position at 6/30/2013

Quotas Total


Quantity %
Eike Fuhrken Batista 1,000 100

1,000 100
Total 1,000 100

1,000 100

Company: Centennial Asset Brazilian Equity Fund LLC Position at 6/30/2013

Quotas Total


Quantity %
Centennial Asset Mining Fund LLC 1,000 100

1,000 100
Total 1,000 100

1,000 100
2Q14 Earnings Release
8 de 17

Economic and Financial Performance
In light of the partial sale of Pecm II, as described above, ENEVAs equity interest in the project
was reduced to 50%. As a consequence, following the accounting standards set forth by the IFRS
11, as of June 1st 2014, Pecm II is recognized under the equity method.

1. Net Operating Revenues

In 2Q14, ENEVA recorded consolidated Net Operating Revenues of R$489.3 million vs R$395.1
million reported in 2Q13. The increase in net revenues is mostly attributable to the beginning of
commercial operations of Pecm II in October 2013 and increased variable revenues of Parnaba I
due to higher Henry Hub prices.
Net revenues in 2Q14 are comprised largely by the revenues from the Regulated Market Power
Purchase Agreements (PPA) of Itaqui, and Parnaba I, which reached, respectively, R$137.0
million and R$247.5 million in the period. Pecm II reported total net revenues of R$96.7 million
in April and May. As mentioned above, as of June 1st, Pecm II is no longer consolidated in
ENEVAs results.
The breakdown of operating revenues for 2Q14 is as follows:
Operating Revenues
(R$ million) Consolidated Itaqui Pecm II Parnaba I Amapari

Gross Revenues 546.2 152.2 108.2 275.4 10.3
Fixed Revenues 248.2 80.7 47.5 110.8 9.2
Variable Revenues 255.5 42.5 49.7 162.3 1.0
Adjustments from previous periods 0.0 0.0 0.0 0.0 0.0
Other Revenues 42.4 29.0 11.1 2.3 0.0
Deductions from Operating Revenues -56.9 -15.2 -11.5 -27.9 -2.2
Net Operating Revenues 489.3 137.0 96.7 247.5 8.1
9 de 17

2. Operating Costs

Operating Costs
(R$ thousands)

2Q14

2Q13
Personnel and Management (10,948) (8,434)
Fuel (189,626) (158,132)
Outsourced Services (38,336) (12,709)
Leases and Rentals (73,175) (52,154)
Energy Acquired for Resale (28,599) (76,692)
Other Costs (51,978) (84,238)
Transmission Charges (13,876) (16,125)
Compensation for Downtime (22,778) (69,511)
Other (15,324) 1,398
Total (392,662) (392,359)
Depreciation and Amortization (46,942) (25,972)
Total Operating Costs (439,603) (418,331)

Operating Costs totaled R$439.6 million in

2Q14, impacted mainly

by an increase of R$31.5
million in fuel costs relative to the same period of the preceding year, due to the beginning of
commercial operations of Pecm II. The fuel cost of R$189.6 million recorded in the quarter is
divided into R$53.4 million incurred by Itaqui, R$41.4 million incurred by Pecm II in April and
May, R$92.6 million incurred by Parnaba I and R$2.3 million by Amapari.
The full-quarter operation of these plants also impacted the Outsourced Services account, which
reached R$38.3 million in 2Q14, mainly due to higher costs with utilities, machinery and
equipment repair, mechanical maintenance service and technical consulting.
The Leases and Rentals account, which totaled R$73.2 million in the quarter, is comprised mainly
by lease costs incurred by Parnaba I, according to its gas supply agreement (R$72.1 million).
The Other Costs account, which totaled R$52.0 million in 2Q14, is mainly composed by
transmission charges (TUST) and compensation for downtime of the power plants (unavailability
charges).
In 2Q14, Itaqui, Pecm II and Parnaba I had to reimburse discos for the energy not delivered by
the difference between their declared variable cost per MWh (CVU) and the spot price (PLD). In
the quarter, these costs amounted to R$2.7 million, R$16.0 million (April and May only) and
R$4.1 million for Itaqui, Pecm II and Parnaba I, respectively.
On January 07, 2014, Itaqui filed a lawsuit against Aneel questioning the penalties being charged
on an hourly basis, considering that the Regulated Market Power Purchase Agreements (PPAs)
provide for using the 60-month rolling average availability. On January 24, 2014, a Federal Court
granted an injunction to Itaqui determining that unavailability charges be calculated based on the
60-month rolling average. In the cases of Pecm II and Parnaba I, unavailability charges are still
being measured and charged on an hourly basis. Downtime charges are calculated based on the
difference between the actual production of the generating units and the authorized capacity
discounting forced and programmed stoppage rates, internal consumption of the units and grid
losses.
10 de 17

3. Operating Expenses

In the quarter, Operating Expenses, excluding Depreciation & Amortization, amounted to R$17.3
million, a 56.8% reduction when compared to 2Q13. In the same period, the holding company
posted Operating Expenses, excluding Depreciation & Amortization, of R$12.7 million, compared
to the R$29.4 million recorded in 2Q13. During the period, the IPCA inflation index rose by
6.80%.

Operating Expenses
(R$thousands)

2Q14
Consolidated
2Q13

%
Personnel (6,167) (18,845) -67.3%
Outsourced Services (8,050) (18,222) -55.8%
Leases and Rentals (1,649) (1,611) 2.4%
Other Expenses (1,462) (2,653) -44.9%
Total (17,327) (41,331) -58.1%
Depreciation and Amortization (801) (652) 22.9%
Total Operating Expenses (18,129) (41,983) -56.8%

Operating Expenses Holding
(R$thousands) 2Q14 2Q13 %

Personnel (4,898) (16,484) -70.3%
Stock Options 160 (9,188) -101.7%
Outsourced Services (5,514) (10,565) -47.8%
Leases and Rentals (1,504) (1,031) 45.9%
Other Expenses (793) (1,347) -41.1%
Total (12,709) (29,427) -56.8%
Total Operating Expenses (13,289) (29,879) -55.5%

The main changes are as follows:

Personnel: Personnel expenses totaled R$6.2 million in 2Q14, compared to R$18.8
million reported in the same period of the preceding year. The reduction in personnel
expenses is largely a result of:
Reduction in stock option-related expenses in the Holding resulting from a
decrease in both the number of options outstanding and the share price since
2Q13 (-R$9.3 million);
Reversal of a provision for dismissals that had been booked in 2013 (-R$2.7
million);
Outsourced services: Expenses with outsourced services in 2Q14 totaled R$8.1 million,
down R$10.2 million in relation to 2Q13. The highlights are:
Decrease in expenses with shared services in the holding company, resulting
from the elimination of EBXs service structure (-R$3.9 million);
Negative accounting adjustments of values booked in previous periods (-R$2.4
million).
11 de 17

4. EBITDA

In 2Q14, ENEVA reported a positive EBITDA of R$79.3 million, mainly due to:
Full quarter operations of Pecm II, which had a positive contribution of R$20.8 million to
2Q14 consolidated EBITDA;
Improved operational performance of Itaqui, with resulting decrease in unavailability
expenses. Itaqui reported an EBITDA of R$20.1 million in 2Q14;
Stable performance of Parnaba I, which reported an EBITDA of R$50.3 million in 2Q14;
Reduced operating expenses in the Holding, which reported a negative EBITDA of R$12.7
million in 2Q14.

5. Net Financial Result

Financial Result

Financial Income 15,189 19,940 -23.8%
Monetary variation 4,121 682 504.4%
Revenues from financial investments 14,656 7,498 95.5%
Marking-to-market of derivatives (4,605) 10,474 -144.0%
Settlement of derivatives - - -
Present value adjust. (debentures) - (175) -100.0%
Other 1,017 1,461 -30.4%
Financial Expenses (149,729) (182,869) -18.1%
Monetary variation (192) (12,919) -98.5%
Interest expenses (134,165) (86,924) 54.3%
Settlement of derivatives - 15,770 -100.0%
Marking-to-market of derivatives (4,124) (12,608) -67.3%
Costs and Interest on Debentures (185) (149) 23.6%
Other (11,065) (86,039) -87.1%
Net Financial Result (134,541) (162,929) -17.4%

In 2Q14, ENEVA recorded net financial expenses of R$134.5 million, compared to net expenses of
R$162.9 million in 2Q13, impacted mainly by a decrease in other financial expenses (-R$75.0
million). Other financial expenses in 2Q13 were inflated by structuring and advisory fees related
to the loans and societary transactions. Such impact was partially offset by an increase in interest
expenses, mainly in the holding company (+R$37.0 million). Higher interest expenses at the
holding level are related to the growth in debt motivated by increased cash needs in the
subsidiaries resulting from energy acquisition costs due to delays in the startup of the power
plants and unavailability penalties.
12 de 17

6. Equity Income

The company reported a negative equity income of R$35.2 million, mainly impacted by losses
incurred by Pecm I.

The following analysis considers 100% of the projects. On June 30, 2014, ENEVA held an interest
of 50.0% in Pecm I, 50% in ENEVA Participaes, 52.5% in Parnaba III and Parnaba IV.

6.1. Pecm I

INCOME STATEMENT - Pecm I
(R$million) 2Q14 2Q13 %

Net Operating Revenues 293.3 227.0 29.2%
Operating Costs (290.2) (309.7) -6.3%
Operating Expenses (4.5) (7.0) -36.6%
Net Financial Result (69.9) (46.7) 49.8%
Earnings Before Taxes (71.3) (136.4) -47.8%
Taxes Payable and Deferred 24.2 46.4 -47.8%
NET INCOME (47.0) (90.0) -47.8%

EBITDA 32.5 (63.8) -151.0%

Net revenues for Pecm I in the quarter amounted to R$293.3 million, comprised of:
Fixed revenues amounting to R$151.1 million;
Variable revenues amounting to R$109.8 million;
Revenues referring to power trades resulting from the annual revision of the plants firm
energy, provided for in the concession contract, totaling R$68.9 million;
Taxes on revenues amounting to R$36.5 million.

Operating Costs, excluding depreciation and amortization, totaled R$256.3 million, a 9.7%
decrease compared to the same period of last year, mostly attributable to the reduction in energy
acquisition costs. The second generating unit of Pecm I was granted authorization for
commercial operations in May 2013 and therefore 2Q13 figures were impacted by costs incurred
to meet contractual obligations for this unit.
Fuel costs in the quarter reached R$107.4 million, split between coal (R$98.9 million) and diesel
oil and other (R$8.5 million) costs.
Operating costs in 2Q14 were also inflated by costs associated with power trades resulting from
the annual revision of the plants firm energy, provided for in the PPAs, amounting to R$61.8
million. Every year, the ONS resets the plants firm energy based on the performance of the past
60 months. If the average availability rate falls below the value originally declared, the plants
firm energy is reduced and the difference has to be covered by a free market collateral contract.
The plant can then sell in the spot market the energy associated with the collateral contract,
maintaining only the collateral component of the contract. In 2Q14, given high spot prices, gross
revenues resulting from this sale amounted to R$68.9 million.
Other Costs totaled R$61.6 million in 2Q14. This account is composed mainly by transmission
charges (R$14.5 million) and compensation for downtime or unavailability charges (R$46.3
million).
13 de 17

Total Operating Expenses (15,024) (13,865) 8.4%

In 2Q14, Pecm I recorded a positive EBITDA of R$32.5 million. Net financial expenses amounted
to R$69.9 million, compared to R$46.7 million in 2Q13, impacted mainly by increased interest
expenses due to interest on long-term financing no longer being capitalized with the start-up of
operations of the second turbine in 2Q13, interest on intercompany loans, higher losses on
monetary variation, due to differential exchange rates on hedging swaps and the reversal of
values previously booked to Shareholders Equity due to the ineffectiveness of hedge accounting.
Pecm I reported a net loss of R$47.0 million in 2Q14.

6.2. ENEVA Participaes S.A.
6.2.1. Holding Operating Expenses
Operating Expenses Holding ENEVA Participaes S.A.

Personnel (6,403) (10,059) -36.3%
Outsourced Services (7,344) (2,439) 201.1%
Leases and Rentals (848) (973) -12.8%
Other Expenses (407) (390) 4.1%
Total (15,002) (13,861) 8.2%

In 2Q14, Operating Expenses, excluding Depreciation & Amortization, amounted to R$15.0
million, an increase of R$1.1 million compared to 2Q13. Despite the reduction of personnel
expenses, outsourced services were impacted by higher expenses related to technical consulting
services provided by E.ON (+R$6.4 million).

6.2.2. Parnaba III
INCOME STATEMENT - Parnaba III

Operating Costs (66.8) (56.7) 17.7%
Operating Expenses (0.2) (0.1) 163.1%
Net Financial Result (2.5) (0.6) 335.0%
Other Revenues/Expenses (0.5) - -
Taxes Payable and Deferred 5.0 7.0 -28.6%
NET INCOME (8.1) (13.6) (0.4)

EBITDA (8.4) (20.0) -58%

14 de 17

On October 22, 2013, Parnaba III received authorization from Aneel to start the commercial
operations of its first generation unit, with 169MW of installed capacity. On February 17, 2014,
the plant started the commercial operations of its second generation unit, with 7MW of installed
capacity, complying with the total capacity contracted under the terms of the Regulated Market
power purchase agreement secured in the 2008 A-5 energy auction (176 MW).
Net revenues in the quarter amounted to R$56.9 million, comprised of:
Fixed revenues amounting to R$25.3 million;
Variable revenues amounting to R$38.1 million;
Taxes on revenues amounting to R$6.5 million.

Operating Costs reached R$66.8 million in the quarter, comprised mainly of:
Fuel - natural gas (R$19.2 million);
Lease costs, according to the gas supply agreement (R$26.6 million)
Unavailability costs (R$14.2 million)

In 2Q14, Parnaba III recorded a negative EBITDA of R$8.4 million.
Net financial expenses amounted to R$2.5 million, mainly impacted by interest expenses.
Parnaba III reported a net loss of R$8.1 million in 2Q14.

6.2.3. Parnaba IV
INCOME STATEMENT - Parnaba IV

Net Operating Revenues 5.2 - -
Operating Costs (17.0) 0.0 -
Operating Expenses (0.3) 0.1 -579.8%
Net Financial Result (8.2) 6.6 -223.5%
Other Revenues/Expenses (0.0) - -
Earnings Before Taxes - - -
Taxes Payable and Deferred 6.9 (1.3) -614.7%
NET INCOME (13.4) 5.4 -350.8%

EBITDA (10.9) 0.1 -16862%

Parnaba IV (56MW) received authorization from Aneel to start commercial operations as a power
self-producer on December 12, 2013. The plant, a partnership between ENEVA, ENEVA
Participaes and Petra Energia S.A., signed a contract in the free market, for a five-year period,
to supply 20 MWavg from December, 2013 until May, 2014 and 46MWavg from June, 2014 until
December, 2018.
In 2Q14, Parnaba IV recorded net revenues of R$5.2 million and operational costs amounting to
R$17.0 million, impacted mainly by fuel costs natural gas (R$4.5 million) and energy costs
resulting from submarket exposure (R$9.3 million). The hedge for submarket exposure, booked
under the ENEVA Power Trading company, had a positive result of R$8.1 million in the quarter.
Parnaba IV reported a negative EBITDA of R$10.9 million in the quarter.
Net financial expenses totaled R$8.2 million, mainly impacted by debt interest.
In 2Q14, the plant reported a net loss of R$13.4 million.

7. Net Income
15 de 17

In 2Q14, ENEVA reported a net loss of R$112.3 million, impacted mainly by interest expenses
related to the end of the grace period of the long-term project loans and higher leverage at the
holding company. However, the improved operational performance of the coal plants and reduced
overhead in the holding led to a 51.9% reduction in net loss as compared to 2Q13.

INCOME STATEMENT
(R$ million)

2Q14

2Q13

%
Operating Costs (439.6) (418.3) 5.1%
Operating Expenses (18.1) (42.0) -56.8%
Net Financial Result (134.5) (162.9) -17.4%
Equity Income (35.2) (45.1) -21.9%
Other Revenues/Expenses 29.2 (1.6) -1931.9%
Taxes Payable and Deferred (1.4) 41.3 -103.5%
Minority Interest (1.8) 0.2 -869.9%
NET INCOME (112.3) (233.2) -51.9%
EBITDA 79.3 (38.6) -305.7%

8. Debt

As of June 30, 2014, consolidated gross debt amounted to R$5,091.5 million, a reduction of
18.0% in relation to the amount recorded on December 31, 2013.
Consolidated debt profile (R$ Million)

The

Short Term Long Term

Working Capital Project Finance
balance of short-term debt at the end of June, 2014 was R$3,144.7 million, or R$736.6 million
higher than the amount recorded on December 31, 2013.
R$1,053.5 million out of the total balance of short-term debt are allocated in the projects (vs.
R$845.9 million on December 31, 2014), as follows:
R$179.9 million refer to the current portion of the long-term debts of Itaqui and Parnaba
I;
R$78.1 million refer to bridge loans to Parnaba I. The outstanding balance will be paid-
off in installments, which started in October, 2013;
1,947
38%
3,145
62%
2,264
44%
2,828
56%
16 de 17

579

R$795.5 million refer to bridge loans to Parnaba II.

The remaining balance of short-term debt, amounting to R$2,091.2 million, is allocated in the
holding company (vs. R$1,562.2 million on December 31, 2013). During 2Q14, ENEVA holding
raised additional R$100 million as a bridge to a long-term financing for Pecm II. This amount
will be paid-off with disbursement of Pecm II long-term financing, amounting to R$150 million.
As part of the ongoing financial restructuring of the Company, a push-down of R$600 million of
the HoldCo debt to its operating subsidiaries, with a 5-year maturity extension with three years
of grace period for the remaining portion, should be carried out after the completion of the
second phase of the capital increase.
At the end of June, 2014, the average cost of debt stood at 10.41% p.a. and the average
maturity at 3.9 years.
Debt Maturity Profile* (R$ Million)

Working Capital

1,387

Project Finance

87,8

1,054 97,0
255,1
207,8

*Values
include
Cash & Cash
Equivalents

debentures.
2014 2015 2016 2017 From 2018 on

principal + capitalized interest + charges and exclude outstanding convertible

Net debt in 1Q14 amounted to R$5,003.8 million, 15.7% lower than the value reported on
December 31, 2013.
Consolidated Cash and Cash Equivalents totaled R$87.8 million at the end of March, 2014, a
decrease of R$189.8 million as compared to the balance in December 31, 2013.

Consolidated Cash and Cash Equivalents (R$ Million)

Consolidated
Cash and Cash

Cash and Revenues Operating CAPEX Capital Debt Raised Intercompany Debt Service Others Cash and
Cash
Equivalents
(1Q14)
Costs and
Expenses
Increase Loan Cash
Equivalents
(2Q14)
Equivalents of the first quarter is already net of Pecm II consolidated cash and cash equivalents.
94,7
120 62,5
83,9 87,7

507
100
128

2,091
4
17 de 17

9. Capital Expenditures (Accounting view)

During 2Q14, ENEVAs consolidated capital expenditures amounted to 121.9 million. Capitalized
interest amounted to R$21.3 million and depreciation & amortization to R$33.9 million.
Capital Expenditures (Consolidated Assets, R$ million)

2Q14 4Q13

Capex
Interest
Capitalized
Depreciation &
Amortization
Capex

Interest
Capitalized
Depreciation &
Amortization

Parnaba I 18.7 - -12.1 70.3 6.7 -3.0

Capital Expenditures (Non-consolidated Assets*, R$ million)

2Q14

Capex
Interest
Capitalized

Depreciation &
Amortization

Pecm I 6.9 - -8.5
Pecm II 8.1 - -8.2

* Adjusted by ENEVAs interest.
Parnaba II 87.9 21.3 - 139.0 13.7 -
Itaqui 15.9 - -21.8 92.4 13.7 -13.0

(A free translation of the original in Portuguese)

Report on review of quarterly information

To the Board of Directors and Stockholders
Eneva S.A.

Introduction

We have reviewed the accompanying parent company and consolidated interim accounting
information of Eneva S.A. (the "Company"), included in the Quarterly Information (ITR) for the
quarter ended June 30, 2014, comprising the balance sheet as at that date and the statements of
operations and comprehensive income for the quarter and six-month periods then ended, and the
statements of changes in equity and cash flows for the six-month period then ended, and a summary of
significant accounting policies and other explanatory information.

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

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Reviews of
Interim Financial Information (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
consists of making inquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with Brazilian and International Standards on Auditing and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

PricewaterhouseCoopers, Av. Jos Silva de Azevedo Neto 200, 1 e 2, Torre Evolution IV, Barra da Tijuca, Rio de Janeiro, RJ, Brasil 22775-056
T: (21) 3232-6112, F: (21) 3232-6113, www.pwc.com/br
PricewaterhouseCoopers, Rua da Candelria 65, 20, Rio de Janeiro, RJ, Brasil 20091-020, Caixa Postal 949,
T: (21) 3232-6112, F: (21) 2516-6319, www.pwc.com/br

2
Eneva S.A.
3

Conclusion on the parent company
interim information

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

Conclusion on the consolidated
interim information

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

Emphasis of matter

Continuity of the Company's operations

We draw attention to Note 1 to this quarterly information, which states that the Company recorded, at
June 30, 2014, an accumulated deficit of R$ 2.558.792 thousand, losses for the six-month period then
ended of R$ 184.211 thousand and presented an excess of current liabilities over current assets in the
parent company and consolidated quarterly information of R$ 1.779.699 thousand and R$ 2.894.586
thousand, respectively. This, along with other matters as described in Note 1, indicates the existence of
a material uncertainty which may raise significant doubt about the ability of Eneva S.A. to continue as
a going concern, which will depend on the success of its current plans that include capital increase ,
sale of assets and renegotiations to reschedule the maturities of loans from third parties as described
in the footnote 1. No adjustments arising from these uncertainties were included in the interim
accounting information. Our conclusion is not qualified in respect of this matter.

Other matters
Statements of value added
We have also reviewed the parent company and consolidated statements of value added for the six-
month period ended June 30, 2014. These statements are the responsibility of the Companys
management, and are required to be presented in accordance with standards issued by the CVM
applicable to the preparation of Quarterly Information (ITR) and are considered supplementary
information under IFRS, which do not require the presentation of the statement of value added. These
statements have been submitted to the same review procedures described above and, based on our
review, nothing has come to our attention that causes us to believe that they have not been prepared,
in all material respects, in a manner consistent with the parent company and consolidated interim
accounting information taken as a whole.
Eneva S.A.
4

Audit and review of prior-year information

The Quarterly Information (ITR) mentioned in the first paragraph includes accounting information
related to the statement of operations, changes in equity, cash flows and value added for the quarter
ended June 30, 2013, obtained from the ITR as at that date, presented for comparison purposes. The
review of the Quarterly Information (ITR) for the quarter ended June 30, 2013 was conducted by other
independent auditors, who issued an unqualified review report dated August 13, 2013 that included
the same emphasis of matter of the aforementioned paragraph.

Rio de Janeiro, August 13, 2014

PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5 "F" RJ

Guilherme Naves Valle
Contador CRC 1MG070614/O-5 "S" RJ
Eneva S.A.
(Publicly held company)
Management notes to the quarterly information
as of June 30, 2014
In thousands of reais, unless stated otherwise
1 of 72

1 Reporting entity

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

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

The company participates as a quotaholder or shareholder of the companies that implement these
projects and certain projects will be implemented in partnership with other players in the energy
sector. These projects were primarily funded through funds obtained under the Company's public
share offering made on December 14, 2007 and January 11, 2008 (supplementary batch), amounting
to R$ 2,035,410, in addition to financing and the issuance of 21,735,744 convertible debentures on
June 15, 2011 amounting to R$ 1,376,527. 21,653,300 debentures were converted on May 24, 2012,
triggering the issuance of 33,255,219 new shares, as a result of the corporate reorganization
implemented by the Company.

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

(a) On May 29, 2013 E.ON acquired Company shares held by Eike Batista accounting for approximately
24.5% of the share capital.

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

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

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

As shown in the table below, on June 30, 2014 the economic group ("Group" or "Company") includes
the Company and its equity interests in associated companies, direct and indirect subsidiaries, joint
ventures and the Multimercado MPX 63 investment fund. The operational companies are (for
further details about the subsidiaries see Note 12):
Parnaba I Gerao de Energia S.A.;
Porto do Pecm Gerao de Energia S.A.;
Pecm II Gerao de Energia S.A.;
Itaqui Gerao de Energia S.A.,;
Amapari Energia S.A.;
ENEVA Comercializadora de Energia Ltda.,
ENEVA Comercializadora de Combustveis Ltda.,
Tau Gerao de Energia Ltda;
Parnaba III Gerao de Energia S.A.; and
Parnaba IV Gerao de Energia S.A.
Eneva S.A.
as of June 30, 2014
2 of 72

Eneva S.A.
as of June 30, 2014
3 of 72

* Joint subsidiary.
** Associated company.

Directly or by way of its subsidiaries, joint subsidiaries and associated companies, the Company has
been making the investment required to finalize the ventures in its portfolio and subsequently begin
the commercial operation thereof.

The Company took out a short-term debt to finance its operations in 2012, 2013 and 2014. The
consolidated loans maturing in the next 12 months can be summarized as follows from June 30,
2014:

Up to 3 months: R$ 417 million.
Between 3 and 6 months: R$ 2,088 million.
Between 6 and 9 months: R$ 81 million.
Between 9 and 12 months: R$ 341 million.

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

Long-term financing for Panaba II in 2014 up to R$ 960 million.

Long-term financing for Panaba III and IV up to R$ 270 million.

Possibility of re-leveraging the Pecm II Gerao de Energia and Itaqui Gerao de Energia S.A.
ventures in operation via a long-term financing issuance up to R$ 650 million.

Transfer of R$ 600 to 700 million from the Company's short-term debt to long-term debt in
operational ventures.

Partial sale of Pecm II on July 14 for the total amount of R$ 408 million.

Ratification of the Company's share capital on August 01 by R$ 175 million. Of this total R$ 42
million was subscribed by the bank Citibank S.A. ("Citi") through funds used entirely to pay early
part of the principal of the debt taken out by the Company from the financial institution. It is
noteworthy that R$ 120 million of the E.ON participation on the capital increase described above,
as advanced for future capital was made in May 20, 2014.

The above capital increase, less Citi's subscription, and the partial sale of the thermoelectric
power plant Pecm II, represent a capital contribution of approximately R$ 540.7 million. These
events constitute the first steps of ENEVA's stabilisation plan.

In addition to the re-leveraging of certain projects described above, the Company is implementing a
capital increase of up to R$ 1.5 billion, to bolster the capital structure and create the means
necessary to permit a substantial reduction in its leverage; for further information, see the
subsequent event described in note 29.
Eneva S.A.
as of June 30, 2014
4 of 72

2 Licenses and permits

ENEVA is committed to obtaining all the legal licenses and permits required for each of its facilities
and activities. The Company and its investees have the following environmental licenses and permits
as of June 30, 2014:

Held by Ventures Licenses Expiry
ITAQUI GERAO DE ENERGIA S.A.
UTE PORTO DO ITAQUI LO 1,101/2012 10/26/2017
TRANSMISSION LINE LO 1,061/2011 12/16/2017

PORTO DO PECM GERAO DE ENERGIA S.A.
UTE PORTO DO PECEM I LO 1,062/2012 12/28/2015
CONVEYOR BELT LO 371/2014 5/14/2018
PECEM I TRANSMISSION LINE LO 889/2012 9/26/2015
PECM II GERAO DE ENERGIA S.A.
UTE PORTO DO PECM II LO 09/2013 2/8/2016
PECEM II TRANSMISSION LINE LO 108/2013 7/17/2016
AMAPARI ENERGIA S.A. UTE SERRA DO NAVIO (including TL) LO 172/2013 3/25/2016

TAU GERAO DE ENERGIA LTDA.
USINA SOLAR TAU 1MW - (including TL) LO 133/2012* 2/28/2014
USINA SOLAR TAU 4MW LI 15/2012* 3/5/2014
USINA SOLAR TAU (45MW) LP 253/2012 8/15/2015
PARNABA I GERAO DE ENERGIA S.A. MARANHO IV AND V LO 559/2012 12/20/2016
PARNABA II GERAO DE ENERGIA S.A. MARANHO III LI 55/2014* 2/20/2018
PARNABA I GERAO DE ENERGIA S.A. MARANHO IV AND V (cycle closure) LI 273/2011* 12/5/2013
ENEVA S.A. UTE PARNAIBA I LI 111/2012* 5/9/2013
ENEVA S.A. UTE PARNABA II LI 003/12* 11/11/2013
PARNABA IV GERAO DE ENERGIA S.A. PARNABA IV LO 415/2013 11/25/2017
ENEVA S.A MC2 NOVA VENECIA 2 LO 1001972/2014 9/23/2017

UTE PORTO DO AU ENERGIA S.A.
- - -
UTE PORTO DO AU II LP IN 025871 12/30/2015
TRANSMISSION LINE LI IN 019365 4/24/2015
AU III GERAO DE ENERGIA LTDA.
ELICA MARAVILHA LI IN 000208* 5/22/2012
ELICA MUNDUS LI IN 000207* 5/22/2012
ENEVA S.A. UTE SUL LP 332/2009* 12/22/2012
SUL GERAO DE ENERGIA LTDA. BARRAGEM SUL LP 601/2010* 5/21/2012
SEIVAL GERAO DE ENERGIA LTDA. UTE SEIVAL LI 589/2009* 2/17/2014
SEIVAL SUL MINERAO LTDA. SEIVAL MINE LO No. 9221/2009* 10/20/2013
CENTRAL ELICA MORADA NOVA LTDA. CGE MORADA NOVA LP 0010/2012

8/10/2014
CENTRAL ELICA SO FRANCISCO LTDA. CGE SO FRANCISCO LP 0083/2012
CENTRAL ELICA MILAGRES LTDA. CGE MILAGRES LP 0084/2012
CENTRAL ELICA SANTA LUZIA LTDA. CGE SANTA LUZIA LP 0085/2012
CENTRAL ELICA PEDRA VERMELHA I LTDA. CGE PEDRA VERMELHA I LP 0090/2012
CENTRAL ELICA ASA BRANCA LTDA. CGE ASA BRANCA LP 0091/2012
CENTRAL ELICA SANTO EXPEDITO LTDA. CGE SANTO EXPEDITO LP 0092/2012
CENTRAL ELICA PEDRA VERMELHA II LTDA. CGE PEDRA VERMELHA II LP 0093/2012
CENTRAL ELICA PAU DARCO LTDA CGE PAU DARCO LP 0184/2013 4/26/2015
CENTRAL ELICA PEDRA ROSADA LTDA CGE PEDRA ROSADA LP 0187/2013 5/2/2015
CENTRAL ELICA PAU BRANCO LTDA CGE PAU BRANCO LP 0189/2013 5/10/2015
CENTRAL ELICA ALGAROBA LTDA CGE ALGAROBA LP 0186/2013 5/6/2015
CENTRAL ELICA UBAEIRA I LTDA CGE UBAEIRA I LP 0188/2013 5/10/2015
CENTRAL ELICA UBAEIRA II LTDA CGE UBAEIRA II LP 0185/2013 5/6/2015
CENTRAL ELICA SANTA BENVINDA I LTDA CGE SANTA BENVINDA I LP 0183/2013 5/23/2015
CENTRAL ELICA SANTA BENVINDA II LTDA CGE SANTA BENVINDA II LP 0191/2013 5/10/2015
CENTRAL ELICA BOA VISTA I LTDA CGE BOA VISTA I LP 0268/2013 6/18/2015
CENTRAL ELICA BOA VISTA II LTDA CGE BOA VISTA II LP 0270/2013 6/18/2015
CENTRAL ELICA BONSUCESSO LTDA CGE BONSUCESSO LP 0271/2013 6/18/2015
CENTRAL ELICA PEDRA BRANCA LTDA CGE PEDRA BRANCA LP 0269/2013 6/18/2015

(*) The renewal of environmental licenses was applied for at least 120 (one hundred and twenty)
days before the validity expires, as fixed in the respective license, and is extended automatically
until the respective environmental authority states its final position. (Supplementary Law
140/2011 art. 14 (4).
Eneva S.A.
as of June 30, 2014
5 of 72

3 Presentation of the interim financial information

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

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

(a) Consolidated interim financial information

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

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

(b) Individual interim financial information

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

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

For the purpose of BR GAAP, Law 11941/09 abolished deferred assets, permitting the maintenance
of the balance accumulated up to December 31, 2008, which may be amortized in up to 10 years,
subject to impairment tests. Following the adoption of IFRS, the Company recorded the amount of
R$ 26,192 in the consolidated accumulated losses, net of tax as of January 01, 2009, corresponding
to its and its subsidiaries' deferred charges at that date. The difference between the individual and
consolidated shareholders' equity is therefore related to the deferred asset which was recognized in
accumulated losses in the consolidated shareholders' equity.
Eneva S.A.
as of June 30, 2014
6 of 72

The table below shows the reconciliation between the individual and consolidated shareholders'
equities as of June 30, 2014:

2014
Shareholders equity - Parent Company 2,411,048
Deferred charges - Law 11941/09 (13,781)
Shareholders' equity - Attributable to controlling shareholders 2,397,267

The Board of Directors authorized the issuance of these financial statements on August 13, 2014.

4 Description of significant accounting practices

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

5 Critical Accounting Estimates and Judgments

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

6 Cash and cash equivalents

Parent Company Consolidated

June 30
2014

December 31
June 30
2014

December 31

2013 2013

Cash and bank deposits

3,581

396

47,504

16,493
Fundo de Investimento MM MPX 63 (a) 8,430 109,647 38,467 202,444
CDB/Purchase and Sale Agreements (b) 113 1,802 58,645

12,011 110,156 87,773 277,582

(a) Substantially consist of quotas in investment funds, of high liquidity, readily convertible into a
known amount of cash, regardless of asset maturity, and are subject to an insignificant risk of a
change in value. This is a share investment fund FI Multimercado Crdito Privado MPX 63
administrated by Banco Ita and primarily backed by Bank Deposit Certificates - CDBs and
securities subject to repurchase agreements issued by first-rate financial institutions and
companies, all linked to floating rates and with an average yield of 100.76% (nominal rate on
the curve) of the DI CETIP rate (Interbank Deposit Certificate - CDI).
Eneva S.A.
as of June 30, 2014
7 of 72

Securities held under repurchase agreements underlied by debentures represent purchase and sale
commitments, registered at CETIP or SELIC, when applicable, and with guarantee of repurchase at a
previously established rate from the financial institutions. 100% of the portfolio consists of securities
held under repurchase agreements as of June 30, 2014.

Existing funds are essentially used for investment in Capex, and to pay for administrative and
operational activities.

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


June 30
2014
December
31
June 30
2014
December
31

2013 2013

Consolidated Multi-Market Fund
Eneva S.A.

8,430

109,647

8,430

109,647
Amapari Energia S.A.

28,320 9,349
Seival Sul Minerao Ltda.

342 406
Parnaba Gerao de Energia S.A.

1,310 27,905
Parnaba II Gerao de Energia S.A.

65 55,137

8,430

109,647

38,467

202,444

(b) Amounts invested in CDBs issued by first-rate financial institutions. The companies that
hold these amounts are the subsidiaries Pecm II Gerao de Energia S.A. and Itaqui Gerao
de Energia S.A.

The exclusive funds are regularly reviewed/audited by independent auditors and are subject to
constraints on the payment of services rendered by the asset manager, attributed to operating
investments, such as custody and audits fees and other expenses. There are no material financial
obligations or company assets to guarantee these obligations.

7 Secured deposits


June 30
2014
December 31
2013
June 30
2014
December 31
2013
BNDES - Porto do Pecm

39 38 39 38
BNDES - Itaqui (a)

68,067 64,811
BNDES - Pecm II (b)

19,682
BNDES - Parnaba (c)

47,629 34,044
CCEE - Parnaba
Other
(d)

55,385
69

39

38

171,120

118,644

Current

39

38

39

38
Non-current

171,081 118,606
(a) Refers to the debt service reserve accounts linked to the financing agreement between the
subsidiary Itaqui Gerao de Energia S.A , BNB-Banco do Nordeste do Brasil S.A. and BNDES.
Eneva S.A.
as of June 30, 2014
8 of 72

(b) Refers to the debt service reserve accounts linked to the financing agreement between BNDES,
BNB Banco do Nordeste do Brasil S.A. and the subsidiary Pecm II Gerao de Energia S.A.
As part of the set of measures to bolster Enevas capital structure, Pecm II Gerao de Energia
SA was classified as available - for - sale and from this quarter will not be consolidated and
cease to be consolidated (see the description in note 12).

(c) Refers to the debt service reserve accounts linked to the financing agreement between BNDES
and the subsidiary Parnaba Gerao de Energia S.A.

(d) Guarantees deposited from Bradesco Trianon relating to the purchase of energy in the spot
market.

8 Accounts receivable and fuel consumption account

Consolidated

June 30
2014
December 31
2013

Amapari Energia S.A. (a)

33,961

40,273
Itaqui Gerao de Energia S.A. (b) 61,703 85,026
Parnaba Gerao de Energia S.A. (b) 138,741 110,113
Parnaba II Gerao de Energia S.A. (b)
Pecm II Gerao de Energia S.A. (b)
521
89,786

234,927

325,198

Current
Non-current

234,927

325,198
(a) The accounts receivable is for energy sold to Zamim Ferrous of R$ 13,239 (R$ 9,472 as of
December 31, 2013) and the balance receivable of the subsidiary is R$ 20,722 (R$ 30,802 as of
December 31, 2013), as described below.

As of June 30, 2014 the balance receivable of the subsidiary is R$ 20,722 (R$ 30,802 as of
December 31, 2013). This amount reflects the 5-month subsidy due to the delay to pass through
the subsidy to the Company. As of December 31, 2013 subsidies for 4 months had been
recorded.

The Company's noncurrent assets include the CCC reimbursement not received for the period
November 2008 to May 2009 of R$ 24,617 thousand. If this amount is not received, the
Company is entitled to charge Anglo Ferrous Amap Ltda. for it. This is because, under said
energy supply agreement between the parties, in the event of an economic/financial unbalance
for reasons not attributable to the Company, the parties shall adjust the contractual terms to
restore the economic and financial equilibrium. However, to date collection procedures against
Anglo Ferrous Amap Ltda. have not commenced, as the Company initially decided to adopt
judicial measures before ANEEL in an attempt to obtain this reimbursement via the CCC
mechanism. As of June 30, 2014 the amount had been completely provisioned for.
Eneva S.A.
as of June 30, 2014
9 of 72

(b) The balance denotes the accounts receivable of the subsidiaries Itaqui Gerao de Energia S.A
under the electricity purchase contract in a regulated environment (CCEAR), signed with
ANEEL, of R$ 61,703 (R$ 85,026 as of December 31, 2013) and the companies that came into
operation in 2013, Parnaba Gerao de Energia S.A. R$ 138,741 (R$ 110,113 as of December 31,
2013), also under the CCEAR with ANEEL.. The subsidiary Parnaba II Gerao de Energia R$
521 referring to the sale of energy in the free market. As part of the set of measures to bolster
Eneva's capital structure, Pecm II Gerao de Energia S.A. was classified as available-for-sale
and from this quarter will not be consolidated. (see the description in note 12).

10 Inventories

Consolidated

June 30
2014
December
31
2013

Diesel oil/lubricant (a) 7,074

12,685
Coal (b) 33,080

49,070
Electronic and mechanical parts (c) 26,575

16,621

66,729

78,376

(a) The balance consists of the reservoirs of diesel oil and lubricating oil used as consumables in
electricity generation by the subsidiaries Amapari Energia S.A.(R$ 4,180) and Itaqui Gerao de
Energia S.A. (R$ 2,894). The subsidiary Amapari Energia S.A. has a contractual acquisition
obligation ("take or pay") towards BR Distribuidora S.A., to require a minimum 3,600 m of
diesel oil a month, for a fixed price or to pay for this even if it is not taken. If the obligation is
exercised, this results in the acquisition of the diesel oil used as a consumable by the Company.
The Company recorded a provision under trade payables for the difference between the amount
required and the minimum mandatory amount under the contract, charged to inventory. As of
June 30, 2014 the balance of this provision is R$ 3,615 (R$ 8,481 as of December 31, 2013),
corresponding of 35,000 m (61,000 m on december 31, 2013) of consumption of diesel,
reduced after the agreement between the parties. In the new contract establishes the
recognition and commitment to consumption of 17,000 m which corresponds to the remaining
portion to be consumed

(b) The balance consists of the inventory of coal used as consumables in electricity generation by
the subsidiary Itaqui Gerao de Energia S.A. (R$ 33,080. The coal was acquired to meet
electricity generation demands and to establish a security inventory at the plant, with a view to
commercial operations.

(c) The balance consists of electronic and mechanical parts for use and replacement in the
maintenance operations carried out by the subsidiaries: Amapari Energia S.A. (R$ 3,405),
Itaqui Gerao de Energia S.A. (R$ 12,918), Parnaba Gerao de Energia S.A. (R$ 9,684) and
Parnaba II Gerao de Energia S.A. (R$ 568).
Eneva S.A.
as of June 30, 2014
10 of 72

11 Recoverable and deferred taxes

The balance of recoverable taxes is as follows:


June 30
2014
December
31
June 30
2014
December
31
2013 2013

Income tax withheld at source (b)

4,123

3,533

12,721

12,161
Prepaid income tax

3,116 3,687
Prepaid social contributions
Prepaid social contributions -
previous year (a)

462

462
1,456

3,193
2,857

464
Income tax withheld at source -
previous year (b) 11,831 13,948 15,947 14,539
Income tax withheld at source -
loan (b) 20,784 13,728 21,431 13,727
ICMS

883 1,994
PIS

513 1,727
COFINS

1 2,363 7,956
Other 1,437 1,244 2,642 3,153

38,637 32,916 64,264 62,265

Current

10,611

25,701

28,777

47,651
Non-current 28,026 7,215 35,487 14,614
(a) Refers to income and social contribution taxes prepaid in the course of the year and previous
years, which will be offset against the income and social contribution taxes determined on the
taxable income.

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

Deferred taxes

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

The deferred tax was maintained at the subsidiaries due to the expectations of generating future
taxable income, determined by a technical valuation approved by Management. The carrying value of
the deferred tax asset is reviewed periodically and the projections are reviewed annually. If there are
significant factors that change the projections, they are also reviewed by the Company during the
year.
Eneva S.A.
as of June 30, 2014
11 of 72

The Company and its subsidiaries adopted the Transitional Taxation Scheme (RTT) so that the
amendments introduced by Law 11638 of December 28, 2007 and articles 37 and 38 of Law 11941 of
2009, which changed the procedure for recognizing revenue, costs and expenses used to calculate
the net income for the year defined in art. 191 of Law 6404 of December 15, 1976, do not affect the
calculation of the taxable income and social contribution calculation base of companies that opt for
the Transitional Taxation Scheme RTT. For tax purposes the accounting methods and criteria in
force at December 31, 2007 should be used.

Law 12973 was published on May 13, 2014 which revoked the Transitional Taxation Scheme - RTT
introduced by Law 11941 on May 27, 2009. This law changes the federal tax legislation regarding
corporate income tax - IRPJ, the social contribution on net income - CSLL, PIS/Pasep and Cofins in
2014 for the companies opting to elect the provisions of this law. In 2014 the companies of Eneva
S.A. will not opt for this law, the adoption of which is only mandatory from January 2015.

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

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

Consolidated

June 30
2014
December
31
2013

Noncurrent deferred charges
Tax loss carryforwards and negative tax base 218,992 302,327

218,992 302,327

Noncurrent deferred liabilities
Temporary differences - RTT

11,694

9,591

Breakdown of deferred tax by company:

June 30
2014
December
31

2013

Parent Company
Pecm II

85,708
Itaqui 192,127 192,127
Amapari 1,144 1,783
Parnaba 14,730 14,006
Parnaba II 10,991 8,703
Tax loss carryforwards and negative tax base 218,992 302,327
Eneva S.A.

Management notes to the quarterly information as of June 30, 2014

1 of 64

As of June 30, 2014 and 2013 the taxes calculated on the adjusted net income consisted
of IRPJ (rate of 15% and surcharge of 10%) and CSLL (rate of 9%). The reconciliation
between the tax expense as calculated by the combined statutory rates and the income
and social contribution tax expense charged to net income is presented below:

June 30,
2014

Parent
Company

Consolidated
Net income for the period before IRPJ/CSLL (184,211)

(175,733)
statutory rate - % 34%

34%
IRPJ/CSLL at the nominal rate (62,632)

(59,749)
Equity income 28,479

Consolidated differences (7,732)

8,631
Tax asset not recorded (*) 41,885

56,394
Income tax and social contribution expense, current

(2,546)

Deferred income and social contribution taxes

(2,730)

Total tax

(5,276)
Effective rate - % 0,00%

3.00%
(*) Refers essentially to (i) the portion of deferred taxes of subsidiaries which was not
recorded, as there is no study demonstrating the realization thereof.

June 30,
2013

Parent
Company

Consolidated
Net income for the period before IRPJ/CSLL (484,151 ) (592,684 )
statutory rate - % 34 34
IRPJ/CSLL at the nominal rate (164,611 ) (201,513 )
Equity Income 108,819

Tax asset not recorded (*) 51,635 88,102
Permanent differences (**) 4,157 11,275

Income tax and social contribution expense, current

336

Deferred income and social contribution taxes

(102,472)

Total tax

(102,136)
Effective rate - % 0,00% 17,23%

Eneva S.A.
as of June 30, 2014

2 of 64

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

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

2015 2016 2017 2018 2019 2020 2021 2022 2023 Total

Expected annual realization
of deferred
tax 20,355 23,326 24,236 22,527 38,407 57,034 43,057 55,220 7,469 291,631

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

Eneva S.A.
as of June 30, 2014

3 of 64

12 Investments

a) Composition of balances


June 30
2014

December
31
2013

June 30
2014

December
31
2013

Equity interests

2,904,373

3,130,881

1,230,290

941,758
Other investments

95

95

95

95

2,904,468

3,130,977

1,230,385

941,853

b) Equity interests

The Company's equity interests include the subsidiaries, joint ventures and associates. The balances
of the main account groups of equity interests as of June 30, 2014 and December 31, 2013 are:

June 30, 2014
Equity interests

Equity
intere
st in %

Current
assets

Noncurren
t assets

Current
liabilities

Noncurren
t liabilities

Shareholde
rs' equity

Net
income
Porto do Pecm Gerao de
Energia S.A. 50.00%

152,718

1,965,992

342,411

1,231,396

544,903

(38,542)
Pecm II Gerao de Energia S.A.
100.00
%

136,259

2,032,902

229,800

1,331,535

607,826

(23,442)
Itaqui Gerao de Energia S.A.
100.00
%

130,451

2,911,370

269,063

1,627,426

1,145,332

(28,328)
Amapari Energia S.A. 51.00%

71,645

65,991

37,278

625

99,733 84
Porto do A Gerao de Energia
S.A. 50.00%

23

22,679

(4)

974

21,732

(829)
Seival Sul Minerao Ltda. 70.00%

408

4,849

0

17

5,240

(345)
Sul Gerao de Energia Ltda. 50.00%

29

6,967 1

404

6,592

(16)
Termopantanal Participaes Ltda. 66.67%

9

400 1

2,726

(2,318)

(5)
Parnaba Gerao de Energia Ltda. 70.00%

192,787

1,316,284

331,640

734,825

442,605

10,886
Porto do Pecm Transportadora de Minrios S.A. 50.00%

1,439

41

273

23 1,184 734
OGMP Transporte Arieo Ltda. 50.00%

193

62 1 -

254 5
PO&M - Pecm Operao e Manuteno de Gerao
Eltrica S.A. 50.00%

1,531

161

434

1,215

43

(164)
Seival Participaes S.A. 50.00%

21

31,209 11

11,482

19,737

(3)
Parnaba II Gerao de Energia
S.A.
100.00
%

20,457

1,301,306

913,463

17,859

390,441

(4,478)
Eneva Participaes S.A. 50.00%

35,449

166,781

58,758

20,295 123,177

(8,986)
Porto do A II Gerao de Energia
S.A. 50.00%

22

2,547

10

222

2,337 6
Parnaba Participaes S.A. 50.00%

64,482

280,726

102,112

107,675

135,420

(3,245)
Parnaba V Gerao de Energia S.A 99.99%

1 - 1 -

0

(1)
Eneva Investimentos S.A. 99.99%

2 - -

11

(9) -
Eneva Desenvolvimento S.A. 99.99%

6

303

10

494

(195)

(7)
MPX Tau II Energia Solar Ltda.
100.00
%

12

477 1

44

445

(236)
MABE Construo e Administrao de Projetos Ltda. 50.00%

24,136

21,998

34,004

12,113 17

(13,831)

Eneva S.A.
as of June 30, 2014

4 of 64

December 31, 2013

Equity
in capital
Current
Assets
Noncurr
ent
assets-
Current
liabilitie
s
Noncurren
t liabilities

Equity interests in %
Sharehol
ders'
equity
Net
income

Porto do Pecm Gerao de Energia S.A. 50.00% 290,867 3,906,638 548,838 2,487,934 1,160,732 (282,342 )
Pecm II Gerao de Energia S.A. 100.00% 170,228 2,029,084 221,660 1,346,518 631,134 (46,331 )
Itaqui Gerao de Energia S.A. 100.00% 153,100 2,924,724 285,496 1,724,724 1,067,603 (250,736 )
Amapari Energia S.A. 51.00% 62,105 69,205 31,608 52 99,649 (3,619 )
Porto do A Gerao de Energia S.A. 50.00% 7,341 51,248 6,064 3,124 49,402 (4,296 )
Seival Sul Minerao Ltda. 70.00% 477 4,840 22 5,295 (792 )
Sul Gerao de Energia Ltda. 50.00% 29 13,947 8 832 13,136 (521 )
Termopantanal Participaes Ltda. 66.67% 9 400 (4 ) 2,726 (2,313 ) (2 )
Parnaba Gerao de Energia Ltda. 70.00% 158,288 1,264,731 265,826 768,997 388,195 152
Porto do Pecm Transportadora de
Minrios S.A. 50.00% 1,274 98 474 899 222
OGMP Transporte Arieo Ltda. 50.00% 368 130 498 410
PO&M - Pecm Operao e Manuteno de
Gerao Eltrica S.A. 50.00% 3,263 491 2,357 415 (324 )
Seival Participaes S.A. 50.00% 30 61,695 6 22,469 39,251 (624 )
Parnaba II Gerao de Energia S.A. 100.00% 62,301 1,163,940 594,757 303,322 328,163 (16,806 )
Eneva Participaes S.A. 50.00% 116,364 388,463 203,084 44,480 257,263 (26,952 )
Porto do A II Gerao de Energia S.A. 50.00% 259 4,782 12 367 4,662 (4 )
Parnaba Participaes S.A. 50.00% 200,833 399,256 233,955 85,464 206,788 14,076
Parnaba V Gerao de Energia S.A 99.99% 9 1 108 (100 ) (111 )
Parnaba Gas Natural S.A. 33.33% 258,196 1,100,395 1,134,315 68,572 155,704 12,640
MPX Investimentos S.A. 99.99% 2 11 (9 ) (12 )
MPX Desenvolvimento S.A. 99.99% 8 303 10 490 (189 ) (201 )
MPX Tau II Energia Solar Ltda. 100.00% 64 69 (506 ) 44 596 (230 )
MABE Construo e Administrao de
Projetos Ltda. 50.00% 55,866 48,871 69,331 35,378 28 (94,169 )

Eneva S.A.
as of June 30, 2014

5 of 64

The balance of investments breaks down as follows:

Parent Company

Consolidated

Equity interests

June 30
2014

December 31
2013

June 30
2014

December
31
2013

Porto do Pecm Gerao de Energia S.A.

544,903 580,367

544,777

580,240

303,913 631,135

303,913

1,091,332 979,904

Goodwill based on future profits

14,746 15,001


50,864 50,821

Porto do Au Energia S.A.

20,372 24,701

13,057

17,386

3,668 3,707

Sul Gerao Energia Ltda.

6,552 6,569

6,233

6,249
Minrios S.A. 1,183 449 1,183 449
Parnaba Gs Natural S.A. (d).

87,675 51,899

87,675

51,899
Parnaba Gerao de Energia Ltda.(b)

180,274 172,637

OGMP Transporte Areo Ltda. (c)

107 277

107

277
Pecm Operao e Manuteno de
Unidades de Gerao Eltrica S.A. -
PO&M 43 207 43 207
Seival Participaes S.A.

19,622

19,625

19,622

19,625

325,440

328,162

ENEVA Participaes S.A.

89,177

97,685

89,177

97,685
A II Gerao de Energia S.A.

2,338

2,331

2,338

2,331
Parnaba Participaes S.A.

100,148

103,393

100,148

103,393
Subscription premium

62,000

62,000

62,000

62,000
MABE do Brasil

16

14

16

14
Future acquisition of investment

95

95

95

95

2,904,468

3,130,978 1,230,385

941,853

(a) As of June 30, 2014 the balance of the investment with the joint ventures and the
subsidiaries MPX Chile Holding Ltda., ENEVA Desenvolvimento S.A. and Termopantanal
Participaes Ltda. was classified under unsecured liabilities in the noncurrent liabilities,
due to the fact these companies had negative equity.

(b) On October 30, 2013 the EGM approved the change of the associated company's name from
OGX Maranho Petrleo e Gs S.A. to Parnaba Gs Natural S.A. A capital increase of R$
250 million was concluded on February 19, 2014 at the associate Parnaba Gs Natural S.A.
The increase was fully subscribed and paid in by Cambuhy and E.ON, as announced in the
press release in October 2013. As a result of the capital increase, the interest held by ENEVA
S.A. dropped from 33.33% to 18.18%.

(c) On May 12, 2014 Eneva S.A. issued a press release announcing its intention to sell between
50% and 100% of the shares issued by its subsidiary Pecm II Gerao de Energia S.A., via a
competition process participated in by potential stakeholders. E.ON undertook to award a
backstop guarantee, subject to certain conditions, which will incorporate indirectly up to
50% of the total shares issued by Pecm II., and an intercompany loan awarded by ENEVA
to Pecm II, via a specific purpose entity, which will have E.ON and ENEVA as shareholders.

The sale of Pecm II will be made on terms and a fair market price to be determined at the
end of the competition process. The acquisition price has been determined based on a fair
market value assessment of the assets, according to Deloitte Touche Tohmatsu and the
contracts are standard for this type of transaction. E.ON's commitment in relation to
Pecm II should not exceed the amount of R$ 400,000,000.00 (four hundred million reais).

Eneva S.A.
as of June 30, 2014

6 of 64

As part of the agreement, reciprocal options were awarded to purchase the remaining portion held
by Eneva and E.ON. These options have a term of 5 years. There is no mandatory or conditional sale
option on E.ON or obligation to return the asset to Eneva.

As a result of the above, on June 30, 2014 we classified 50 % of the investments to current assets
under assets held-for-trading. This classification was valued and ratified based on the requisites of
CPC 31.

Until May 31, 2014 Pecm II was fully consolidated as of June 30,2014 we no longer consolidate it,
recognizing its effects through equity.

This transaction was concluded in July 2014, as described in note 29.

Eneva S.A.


7 of 64
See below the breakdown of the minority interest in the equity and net income of investees.

The balance of investments breaks down as follows:

Attributed to minority interests

Investments Equity
Shareholder
s' equity Net income
Shareholder
s' equity Net income


51% 99,733 84 50,864 43
Parnaba I Gero de Energia

70% 257,534 10,886 180,274 7,620
Termopantanal Participaes

67% (2,318) (5) (1,545) (3)
Seival Sul Minerao

70% 5,239 (345) 3,668 (242)

360,188 10.620 233,261 7.418

(c) Change in investment

6/30/2014

Direct subsidiaries

%

Bala
nce
at
12/31
/2013

Capita
l
subscr
iption

Equit
y
inco
me

Gain
on
increa
se in
intere
st

Capital
reducti
on

Exch
ange
Vari
ance

Equit
y
Appr
aisal
Adju
stme
nt

Adju
stme
nt in
equit
y
inter
est

Amor
tizati
on

Balanc
e at
6/30/2
014

Porto do Pecm Gerao de
Energia S.A.

50.
00
%

580,3
66

(38,66
7)

3,204

544,903
Pecm II Gerao de Energia
S.A.***

100
.00
%

631,13
5

(23,30
9)

-

(303,9
13)

303,913
Itaqui Gerao de Energia
S.A.

100
.00
%

979,9
03

139,70
0

(28,27
1)

1,091,33
2
Goodwill based on future
profits

15,001

-

(256)

14,745

51.
00
%

50,82
1

43

50,864

50.
00
%

24,701

(829)

(3,500)

20,372

70.
00
%

3,707

203

(242)

3,668
Sul Gerao de Energia Ltda.

50.
00
%

6,569

(16)

6,552
Porto do Pecm
Transportadora de Minrios
S.A.

50.
00
%

449

734

1,183
Parnaba Gs Natural S.A.**

33.
30
%

51,899

13,917

21,85
8

87,675
Parnaba Gerao de Energia
S.A.*

70.
00
%

172,63
7

7,637

-

180,274
OGMP Transporte Aereo

50.
00
%

277

7

(178)

107
Pecm Operao e Manuteno de
Unidades de Gerao Eltrica S.A.
- PO&M
50.
00
%

207

(164)

43

99.
90
%

19,625

(3)

19,622
Porto do Au II Energia S.A.

50.
00
%

2,331

6

2,338
Eneva Participaes S.A.

50.
00
%

97,68
5

(8,507
)

-

-

89,177

-

62,00
0

-

62,000
Eneva S.A.
as of June 30, 2014

8 of 64

Subscription Premium

50.
00
%

103,3
93

(3,245
)

-

100,148
Parnaba V Gerao de
Energia S.A.

99.
99
%

-

-

-
MABE do Brasil

50.
00
%

14

2

16
Eneva Investimentos S.A.

99.
99
%

-

-

-
Parnaba II Gerao de
Energia S.A.

100
.00
%

328,1
62

(2,722)

325,440
Future acquisition of
investment

95

-

95

3,130,
977

139,90
3

(83,62
7)

-

(3,678)

-

3,204

(282,
055)

(256)

2,904,46
8

Parent Company

2013

%
Balanc
e at
Decem
ber 31,
2012
Capital
subscript
ion
Equity
income
Gain
on
incre
ase in
intere
st
Capital
reducti
on
Excha
nge
varian
ce
Equity
apprais
al
adjustm
ent
Spin-
off
Amortiza
tion
Balanc
e at
Decem
ber 31,
2013

Investment

Porto do Pecm Gerao de Energia
S.A.

50 611.561 98.600 (141.171)

11.379

580.366

100 449.104 227.400 (46.331) 961

631.134

100 551.549 694.560 (250.736)

(469) 994.904

51 52.872

(2.051)

50.821

50 27.251 4.850 (7.400)

24.701

70 3.511 750 (554)

3.707
Sul Gerao de Energia Ltda.

50 6.599 230 (261)

6.568
Minrios S.A.

50 338 - 111

449
Parnaba Gs Natural S.A.

33,3 31.861 15.825 4.213

51.899
Parnaba Gerao de Energia S.A.*

70 231.101 33.600 106

(92.17
0)

172.637
OGMP Transporte Aereo

50 6.823 250 205

(7.000)

278
Pecm Operao e Manuteno de Unidades de
Gerao S.A.
Gerao Eltrica S.A. - PO&M

50 367

(162)

207

99,9 19.365 573 (312)

19.626
Au II Energia S.A.

50 2.133 200 (2)

2.331
ENEVA Participaes S.A.

50 128.406

(15.074)

267

46.08
5

159.685

50 6.917 43.355 7.036

46.08
5

103.393
Parnaba V Gerao de Energia S.A.

99,99 1 (1)

0
MABE do Brasil

50

14

14
Eneva Tau II Energia Solar Ltda.

Eneva

100,0
0%
1 (1)

0
ENEVA Investimentos S.A.

99,99


100 85.254 259.715 (16.806) 328.163
Future acquisition of investment

95

95

2.215.10
9
1.379.920 (469.189) 961 (7.000) 267 11.379 0 (469)
3.130.97
7
Eneva S.A.
as of June 30, 2014

9 of 64

(*) Denotes the effect of transferring the turbine from Parnaba I to Parnaba III.
(**) The effect denotes the reduction in the percentage interest in the capital of its associate
Parnaba Gs Natural S.A.
(***) The effect denotes the reclassification of 50% the investment balance to current, as described
above (item C).

Eneva S.A.


10 of 64
13 Property, plant and equipment


Consolidated

Property, plant and equipment in service

PP&E in
service

06/30/2014

Land

Buildings,
Civil Works
and
Improveme
nts

Machinery
and
Equipment

IT
Equipment

Vehicles

Furniture
and
Fixtures

PP&E in
progress

Total
Depreciation
rate % p.a.

4

7

17

20

10

Cost

Balance at
31/12/2
013

7.845

2.119.535

1.701.700

4.880

1.694

8.226

1.191.727

5.035.607

Balance at
31/12/2
013

7.845

2.119.535

1.701.700

4.880

1.694

8.226

1.191.727

5.035.607
Additions

-

73

2.200

321

108

584

169.580

172.866
Write-offs

-

-

(12)

-

(237)

-

(1.413)

(1.661)
Transfers

-

72.708

(21.720)

-

-

2

(51.017)

(27)
Balance at
30/06/
2014

7.845

2.192.316

1.682.168

5.201

1.565

8.811

1.308.878

5.206.785

Depreciation

Balance at
31/12/2
013

-

(58.240)

(73.929)

(1.620)

(591)

(2.199)

-

(136.578)

Balance at
31/12/2
013

-

(58.240)

(73.929)

(1.620)

(591)

(2.199)

-

(136.578)
Additions

-

(29.939)

(35.190)

(80)

(168)

(412)

-

(65.789)
Write-offs

-

-

-

-

191

-

-

191
Transfers

-

-

-

-

-

-

-

-
Balance at
30/06/
2014

-

(88.178)

(109.119)

(1.700)

(569)

(2.611)

-

(202.176)
Carrying
Amount

Balance at
31/12/2
013

7.845

2.061.295

1.627.771

3.260

1.103

6.027

1.191.727

4.899.029
Balance at
30/06/
2014

7.845

2.104.137

1.573.049

3.501

996

6.201

1.308.878

5.004.609
Eneva S.A.


11 of 64
Machinery and equipment

Basically relates to the UTEs Amapari Energia S.A., Itaqui and Parnaba , which come into operation
in November 2008, February 2013 and October 2013 respectively. Asset depreciation is based on the
concession term and calculated by the straight line method at the rates determined by Normative
Resolution 474 issued February 07, 2012 by the National Electric Energy Agency - ANEEL. For the
estimated portion of the investments made and not depreciated by the end of the concession, a new
depreciation or amortization rate is calculated and recorded in income monthly, so that a value equal
to zero is obtained at the end of the concession.

Buildings, Civil Works and Improvements

This basically refers to the UTEs Itaqui and Parnaba, which came into operation in February 2013
and October 2013, respectively. Depreciation follows the same procedure and criteria described in
the item Machinery and equipment.

Property, plant and equipment in progress

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

The expenses incurred on advances made for reserves and equipment acquisitions to build the
thermal power plants of the companies Itaqui Gerao de Energia S.A e Parnaibas I and II, are
transferred to the respective accounts of property, plant and equipment in service, following the
approval of the declaration of commercial operation (DCO). Said subsidiary, Itaqui Gerao de
Energia S.A. and MABE Construo e Administrao de Projetos Ltda. signed EPC agreements
(Engineering, Procurement and Construction) in the form lump sum turn key to build the power
stations. As established in the respective agreements, 15% of each advance made should be withheld
as a guarantee for delivery of the power station, to be disbursed in the course of FY 2013, if MABE
presents bank guarantees. It should be noted that it is not known when this withheld portion of the
advance will be applied in the construction of the plant. As of June 30, 2014 the total guarantees
retained by said subsidiaries amount to R$ 57,091 (R$ 20,038 as of December 31, 2013) and have
been recorded under the respective subsidiary's current liabilities and presented in the consolidated
financial statements under Contractual retentions.

The labor costs of workers directly allocated to the construction of the Parnaba II plant, which
amounts to R$ 23,724 as of June 30, 2014 (R$ 20,038 as of December 31, 2013), is being capitalized.

Eneva S.A.
as of June 30, 2014

12 of 64

In 2013 the Itaqui projects and part of the Parnaba complex came into operation and the
corresponding amounts of property, plant and equipment in progress were transferred to the
respective accounts of property, plant and equipment in service. As of June 30, 2014 the remaining
balance of property, plant and equipment in progress primarily consists of the Parnaba II project,
which is forecast to come into operation in 2014.

As of June 30, 2014 the costs of consolidated loans capitalized under the property, plant and
equipment in progress amounted to R$ 41,438 (2013 - R$ 117,926), as follows:

Parnaba II

Average rate in 2014 (p.a.)

10%
Amounts capitalized in 2014 41,438
Amounts capitalized in 2013

72,328

Eneva S.A.
as of June 30, 2014

13 of 64

14 Intangible assets


Consolidated

Intangible assets in service

Intangible assets in service

31/6/2014

Computer programs
and licenses

Goodwill on
Acquisition of
Investments

Concessions and
CCEARs

Usage rights

Intangible
assets in
progress

Total
Amortization rate % p.a.

20

20

Cost

Balance at 31/12/2013

6.167

15.470

183.448

10.499

6.089

221.673


6.167

15.470

183.448

10.499

6.089

221.673
Additions

400

-

-

-

400
Write-offs

-

-

-

-

-
Transfers

920

-

-

(893)

27
Balance at
30/06/201
4

7.486

15.470

183.448

10.499

5.196

222.099

Amortization


(3.031)

(468)

-

(4.792)

-

(8.292)


(3.031)

(468)

-

(4.792)

-

(8.292)
Additions

(591)

(256)

(6.068)

(689)

-

(7.604)
Write-offs

-

-

-

-

-
Transfers

-

-

-

-

-
Balance at
30/06/201
4

(3.623)

(724)

(6.068)

(5.481)

-

(15.895)
Carrying
Amount


3.135

15.002

183.448

5.707

6.089

213.381
Balance at
30/06/201
4

3.864

14.746

177.381

5.018

5.196

206.204

Eneva S.A.
as of June 30, 2014

14 of 64

2013

Computer
programs
and licenses

Goodwill on
investments
Concession
s and
CCEARs
Usage
rights
Intangible
assets
in progress Total

Amortization rate % p.a. 20 3.3 20

Cost

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

Additions 5,224 251 270 21,214
Write-offs
Transfers 6,613 (7,061 ) (436 ) (885 )

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

Amortization

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

Additions (6,244 ) (469 ) (6,713 )
Write-offs
Transfers

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

Carrying amount

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

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

(b) Goodwill on investments

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

(c) Intangible assets in progress

Basically consists of the easement for installation of the water intake system used by the electric
power plant Parnaba II.

15 Related parties

The main balances of assets and liabilities as of June 30, 2014 and December 31, 2013 related to
related-party transactions, as well as the transactions that influenced the income for the period,
relate to transactions between the Company and its direct and indirect subsidiaries, affiliates and key
management personnel, which were conducted in accordance with the terms agreed by the parties.

(a) Controlling Shareholder

The Company's control is jointly exercised by Mr. Eike Fuhrken Batista and DD Brazil Holdings
S..R.L (fully controlled by E.ON SE), which respectively hold 23.9% and 37.9% of the common
shares.

Eneva S.A.
as of June 30, 2014

15 of 64

(b) Managers

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

c) Related companies

The Companys main affiliated companies are: EBX Holding Ltda.,E.ON SE, leo e Gs
Participaes S.A., Prumo Logstica S.A., MMX Minerao e Metlicos S.A., OSX Brasil S.A., OMX
Operaes Martimas Ltda., CCX Brasil Participaes S.A., MMX Chile S.A., LLX A Operaes
Porturias S.A. and AVX Txi Areo Ltda., in addition to its subsidiaries and associated companies.

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

Assets


6/30/2014 12/31/2013

6/30/2014 12/31/2013

Termopantanal Ltda. (a)

7,683

7,683

-

-
Termopantanal Ltda. (a)

(7,453)

(7,453)

-

-
Termopantanal Participaes Ltda. (a)

457

457

-

-
EBX Holding Ltda. (b) 12,515

12,542

12,515

12,542
Pecm II Gerao de Energia S.A. (c)

339,306

324,216

339,306

-
ENEVA Comercializadora de Energia S.A.(d)

896

653

11,448

14,387
Parnaba Gerao de Energia S.A. (e)

5,905

5,159

-

-
Itaqui Gerao de Energia S.A. (f)

395,561

404,621

385

-
Advances for future capital increase for subsidiaries (g) 288,795

206,678

7,620

150
Pecm Operao e Manuteno Eltrica S.A. (h)

1,620

1,547

1,620

1,547
Porto do Pecm Gerao de Energia S.A. (i) 314,213

258,749

316,070

260,268
ENEVA Desenvolvimento (j)

348
346

-

-
Parnaba II Gerao de Energia S.A. (j)

4,082

2,977

-

-
Sul Gerao de Energia S.A. (j) 211

181

211

181
Porto do A Energia S.A. (j)

267

241

267

241
ENEVA Comercializadora de Combustvel Ltda. (j)

427

327

427

327
Seival Participaes S.A. (j) -

-

-

Seival Sul Minerao Ltda. (j)

10

10
-

-
ENEVA Investimentos S.A. (j) 11

11

-

Parnaba V Gerao de Energia S.A. (j) -

119

-

-
ENEVA Participaes S.A. (k)

9,042

5,341

9,042

5,341
Tau II Gerao de Energia Ltda.

44

44
-

-
Parnaba III Gerao de Energia S.A. -

-

-

-
Parnaba IV Gerao de Energia S.A. (l)

66,764
14,219

66,764

14,219
Parnaba Gs Natural S.A.(m) -

204,794

1,344

206,138
MABE da Brasil.(n) 12,109

11,559

12,109

11,559
Parnaba Participaes S.A. (o)

46
1,131

46

1,131
Seival Gerao de Energia S.A.

220
195

220

196

1,453,078 1,456,347

779,393 528,227
Current -

-

-

-
Non-current 1,453,078

1,456,347

779,393

528,227

Eneva S.A.
as of June 30, 2014

16 of 64

Liabilities

Parent Company

Consolidated

6/30/2014 12/31/2013

6/30/2014 12/31/2013
EBX Holding Ltda. (b) 2,772

2,772

2,878

2,824
Copelmi Minerao Ltda. -

-

148

158
ENEVA Comercializadora de Energia Ltda. (d) 81

81

73,833

138,478
Porto do Pecm Gerao de Energia S.A. (i) -

-

-

2,502
ENEVA Comercializadora de Combustveis Ltda. (j) -

-

-

-
ENEVA Participaes S.A. (k) 5,801

3,919

5,801

3,919
Tau Gerao de Energia Ltda. 444

444

444

444
Porto do Pecm Transportadora de Minrios S.A. -

-

-

70
Parnaba Gs Natural S.A.(m) 274

274

47,567

45,128
Parnaba Participaes S.A.(o) 34,768

27,000

34,768

27,000
Petra Energia S.A.(p) -

-

85,283

80,781
Pecm Operao e Manuteno Eltrica S.A. -

-

-

DD Brazil (q) 524 -

7,404 6,416

44,663 34,489

258,126 307,720
Current -

-

-
Non-current 44,663

34,489

258,126

307,720

Net income


6/30/2014 6/30/2013

6/30/2014 6/30/2013

EBX Holding Ltda. (b) -

(8,162)

(6)

(9,963)
Pecem II Gerao de Energia S.A. (c) 8,248

5,314

-

771
Copelmi Minerao Ltda. -

-

(42)
ENEVA Comercializadora de Energia S.A. (d) 97

476

43,773

(79,338)
Parnaba Gerao de Energia S.A. (e) 549

947

-

(380)
Itaqui Gerao de Energia S.A. (f) 11,226

14,485

-

1,801
Pecm Operao e Manuteno Eltrica S.A. (h) 42

55

42

(5,484)
Porto do Pecm Gerao de Energia S.A. (i) 4,201

5,548

4,201

5,548
ENEVA Desenvolvimento S.A.(j) 2

64

-

(1)
Parnaba II Gerao (j) 918

607

-

(770)
Sul Gerao de Energia S.A. (j) 14

63

14

63
Porto do A Energia S.A. (j) 10

94

10

94
ENEVA Comercializadora de Combustvel Ltda. (j) 43

21

43

21
Seival Participaes S.A. (j) 25

11

25

11
Parnaba V Gerao de Energia S.A. (j) 101

87

101

87
ENEVA Investimentos S.A. (j) -

11

-

11
ENEVA Participaes S.A. (k) 981

503

981

503
Parnaba IV Gerao de Energia S.A. (l) 2,014

11

2,014

11
Parnaba Gs Natural (m) (8,421)

(8,421) -

MABE Construo e Administrao de Projetos Ltda. (n) 293

101

(324)

101
Parnaba Participaes (o) 148

40

-

40
Petra Energia S.A.(p) -

- -

Parnaba III Gerao de Energia S.A. (1,943)

(1,943)

MMX Minerao e Metlicos S.A. -

-

OSX Brasil S.A. -

-

LLX Logstica S.A. -

-

MPX Solar Empreendimentos Ltda. -

-

Total 18,547 20,276

40,509 (86,916)

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

Eneva S.A.
as of June 30, 2014

17 of 64

(b) The Company and its subsidiaries also maintain agreements for sharing costs of operating and
financial activities entered into with the company EBX Holding Ltda. involving monthly
collections made through trade notes paid according to understandings between the parties.
The effect on consolidated net income as of June 30, 2014 is R$ (6) (R$ (9,963) as of June 30,
2013).

(c) The balance consists of a loan executed with Eneva S.A. (lender) subject to monthly interest
(104% of the DI-Over rate). As of June 30, 2014 the effect on net income is R$ (8,248).

(d) The balance consists of operational and financial cost sharing agreements with Eneva S.A.,
Itaqui Gerao de Energia S.A., Parnaba II Gerao de Energia S.A. and Pecm II Gerao de
Energia S.A., involving monthly collections made through trade notes paid according to
understandings between the parties (average DPO of 30 to 60 days). As of June 30, 2014 the
effect on consolidated net income is R$ 43,773.

(e) The balance derives from the administrative cost reimbursement contract and feasibility
studies. The outstanding balance as of June 30, 2014 is R$ 5,905 and the effect on the parent
company's net income is R$ 549.

(f) The balance consists of: (i) loan agreement executed in January 2012 with Eneva S.A. (lender)
subject to monthly interest (104% of CDI) and with an indefinite maturity amounting to R$
385,770. As of June 30, 2014 the effect on net income is R$ 10,093 and (ii) revenue from
reimbursement of operational, financial and administrative costs, amounting to R$ 9,791. As of
June 30, 2014 the effect on net income is R$ 1,133.

(g) Balance consisting of advances for future capital increase (AFACs) of its subsidiaries from
investments to noncurrent assets, which are irrevocable and irreversible. However, no fixed
value has been defined for the number of shares in the capital increase, in contravention of CPC
38. The following AFACs are outstanding as of June 30, 2014 with the following companies:

Subsidiary
30
June
2014
December
31
2013

Sul Gerao de Energia Ltda. 15
Seival Participaes S.A. 95
Porto do A Energia S.A. 1,360
Parnaba Gerao de Energia S.A. 161,500 118,000
Parnaba II Gerao de Energia S.A. 65,000
Parnaba V Gerao de Energia S.A. 10
Itaqui Gerao de Energia S.A. 54,000 87,700
ENEVA Investimentos S.A. 3
ENEVA Participaes S.A. 6,000
OGMP Transporte Areo Ltda. 150 150
Tau II Gerao de Energia Ltda. 675 815

288,795 206,678

Eneva S.A.
as of June 30, 2014

18 of 64

(h) The balance consists of a loan agreement executed in December 2011 with Eneva S.A. (lender)
subject to monthly interest (110% of CDI) and maturity on December 31, 2014, amounting to R$
1,620. As of June 30, 2014 the effect on net income is R$ 42.

(i) The balance consists of: (i) loan agreement executed in September 2012 with Eneva S.A.
(lender) subject to monthly interest (105% of CDI) and with an indefinite maturity amounting
to R$ 171,866. As of June 30, 2014 the effect on net income is R$ 4,200 and (ii) contract
between the parties to assume the costs of acquiring coal incurred by Porto do Pecm in the
period between September and December 2013. The amount as of June 30, 2014 is R$ 142,347

(j) Revenue from reimbursement of project implementation costs.

(k) Operational, financial and administrative costs reimbursement contract. The company
determined revenue balance as of June 30, 2014 of R$ 981.

(l) The balance consists of: (i) loan agreement executed in January 2012 with Eneva S.A. (lender)
subject to monthly interest (125% of CDI) and with an indefinite maturity amounting to R$
66,611. As of June 30, 2014 the effect on net income is R$ 1,917 and (ii) revenue from
reimbursement of operational, financial and administrative costs, amounting to R$ 153. As of
June 30, 2014 the effect on net income is R$ 95.

(m) The balance consists of: (i) costs relating to the gas purchase agreement and leasing of the gas
treatment plant's capacity, between Parnaba Gs Natural and Parnaba Gerao, amounting to
R$ 47,567 as of June 30, 2014. and (ii) interest revenue on accounts receivable charged in the
outstanding balance of the financial advance made to Parnaba Gs Natural, of R$ 8,421.

(n) (i) loan agreement executed in January 2013 with Eneva S.A. (lender) subject to monthly
interest (105% of CDI) and with an indefinite maturity amounting to R$ 12,109. As of June 30,
2014 the effect on consolidated net income is R$ 324.

(o) (i) loan agreement executed in January 2013 with Parnaba Participaes S.A (lender) subject
to monthly interest (125% of CDI) and with an indefinite maturity amounting to R$ 34,768. As
of June 30, 2014 the effect on consolidated net income is R$ 148.

(p) The balance consists of costs relating to the gas purchase agreement and leasing of the gas
treatment plant's capacity, between Parnaba and Petra, amounting to R$ 85,283.

(q) Project implementation costs reimbursement agreement with DD Brazil, amounting to R$
7,404.

(d) Compensation of the Board of Directors and Executive Board members

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

Eneva S.A.
as of June 30, 2014

19 of 64

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


June 30
2014
December
31
2013
June 30
2014
December 31
2013

Immediate benefits
Salaries 2,557 4,565 4,055 9,449

2,557 4,565 4,055 9,449

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

Consolidated

2014 2013

Minimu
m Average Maximum
Minimu
m Average
Maximu
m

Board of Directors 20,000 24,000 40,000 16,999 62,227 96,000
Officers 177,722 326,446 530,456 122,451 822,660 1,815,721

Eneva S.A.


20 of 64
16 Loans and financing

As of June 30, 2014 and December 31, 2013 the loans and financing taken out from financial
institutions break down as follows:

The table below shows the breakdown of the loans of the joint subsidiary Porto do Pecm Gerao de
Energia S.A., Pecm II Gerao de Energia S.A. and the indirect subsidiaries MPX Chile Holding
Ltda., Parnaba III Gerao de Energia S.A and Parnaba IV Gerao de Energia S.A. As a result of
the new consolidation rules introduced by IFRS 11, from 2013 we are no longer obliged to present
them in the financial statements:

Company Credi tor
Currenc
y Interest rate s Maturi ty Effecti ve Rate
Transacti on
cost
Unappropri ate
d cost Princi pal Interest Total
Transacti on
cost
Unappropri a
ted cost Princi pal Interest Total
It aqui BNDES(Direct) (a) R$ TJ LP +2.78% 15/06/26 2,89% 11.182 9.586 796.709 2.316 789.439 11.182 9.913 830.630 2.586 823.304
It aqui BNB (b) R$ 10,00% 15/12/26 10,14% 2.892 2.669 201.359 801 199.491 2.892 2.727 201.977 857 200.107
It aqui BNDES(Indirect ) (c) R$ IP CA +TR BNDES +4.8% 15/06/26 4,94% 2.023 1.919 113.912 13.425 125.419 1.475 1.473 109.302 6.041 113.870
It aqui BNDES(Indirect ) (d) R$ TJ LP +4.8% 15/06/26 4,94% 1.475 1.472 155.570 567 154.664 2.023 1.953 162.052 632 160.731
Pecm II BNDES(Direct) (e) R$ TJ LP +2.18% 15/06/27 0,00% - - - - - 7.803 6.091 710.327 2.054 706.290
Pecm II BNDES(Direct) (f) R$ IP CA +TR BNDES +2.18% 15/06/27 0,00% - - - - - 1.740 1.294 131.607 42.840 173.153
Pecm II BNB (g) R$ 10,00% 31/01/28 0,00% - - - - - 4.287 3.620 250.000 4.070 250.450
Parnaba I BRADESCO (h) R$ CDI +3.00% 18/12/14 0,00% - - 28.000 384 28.384 4.593 - 48.000 117 48.117
Parnaba I Banco It a BBA (i ) R$ CDI +3.00% 15/04/15 0,00% - - 49.180 575 49.755 11.516 - 60.670 776 61.446
Parnaba I BNDES(Direct) (j) R$ TJ LP +1.88% 15/06/27 2,27% 23.589 23.434 475.168 1.231 452.965 16.867 16.860 493.444 1.370 477.954
Parnaba I BNDES(Direct) (k) R$ IP CA +TR BNDES +1.88% 15/07/26 2,29% 9.724 9.084 225.099 16.197 232.212 6.953 6.663 215.988 10.408 219.733
Parnaba II Banco It a BBA (l ) R$ CDI +3.00% 30/12/14 0,00% - - 200.000 13.121 213.121 - - 200.000 146 200.146
Parnaba II CEF (m) R$ CDI +3.00% 30/12/14 0,00% - - 280.000 18.483 298.483 - - 280.000 286 280.286
Parnaba II BNDES (n) R$ TJ LP +2.40% 15/06/15 3,74% 7.261 7.261 288.545 2.644 283.928 3.619 3.619 280.700 223 277.304
ENEVA S/A Banco It a BBA (o) R$ CDI +2.65% 16/12/14 - - - 105.790 7.207 112.997 - - 105.790 503 106.293
ENEVA S/A Banco Cit ibank (p) R$ CDI +2.95% 22/09/14 - - - 101.250 9.893 111.143 - - 101.250 3.107 104.357
ENEVA S/A Banco Cit ibank
(q)
USD LIBOR 3M +1.26% 27/09/17 - - - 110.125 14 110.139 - - 117.130 20 117.150
ENEVA S/A Banco BTGPact ual
(r)
R$ CDI +3.75% 09/12/14 - - - 101.912 792 102.705 - - 101.912 792 102.705
(s)
R$ CDI +3.75% 09/06/15 - - - 350.000 2.721 352.721 - - 350.000 2.559 352.559
(t)
R$ CDI +3.75% 09/12/14 - - - 370.000 2.876 372.876 - - 370.000 1.196 371.196
ENEVA S/A Banco HSBC
(u)
R$ CDI +2.75% 12/12/14 - - - 303.825 21.173 324.998 - - 303.825 1.747 305.572
(v)
R$ CDI +4.00% 03/11/14 - - - 42.000 956 42.956 - - 42.000 879 42.879
(w)
R$ CDI +4.00% 09/12/14 - - - 100.000 7.829 107.829 - - 100.000 792 100.792
ENEVA S/A Banco It a BBA
(x)
R$ CDI +2.65% 05/12/14 - - - 200.000 14.335 214.335 - - 200.000 1.618 201.618
(y)
R$ CDI +2.65% 09/12/14 - - - 210.000 14.839 224.839 - - 210.000 1.499 211.499
ENEVA S/A Banco Sant ander
(z)
R$ CDI+3.25-4.25% 15/01/15 - - - - - - - - 66.667 336 67.003
ENEVA S/A Morgan St anley
(aa)
R$ CDI+3.25-4.25% 15/01/15 - - - - - - - - 66.667 336 67.003
(bb)
R$ CDI+3.25-4.25% 15/01/15 - - - - - - - - 66.667 336 67.003
(cc)
R$ CDI +3.15% 19/01/16 - - - 80.000 4.395 84.395 - - - - -
(dd)
R$ CDI +3.00% 12/08/14 - - - 39.782 694 40.476 - - - - -
(dd)
R$ CDI +3.00% 12/08/14 - - - 16.675 291 16.966 - - - - -
(dd)
R$ CDI +3.00% 12/08/14 - - - 28.838 503 29.342 - - - - -
ENEVA S/A Banco HSBC (dd) R$ CDI +3.00% 12/08/14 - - - 14.705 256 14.960 - - - - -
58.146 55.425 4.988.445 158.519 5.091.539 74.950 54.213 6.176.605 88.129 6.210.520
Unappropri ate
d cost Pri nci pal Interest Total
Unappropri a
Current 8.761 2.997.858 154.125 3.143.222 6.984 1.716.403 110.555 1.819.974
Non-current 46.664 1.990.587 4.394 1.948.317 32.409 3.111.363 25.852 3.104.806
Consoli dated
30/06/14 31/12/13
Company Credi tor
Currenc
y Interest rate s Maturi ty Effecti ve Rate
Transacti on
cost
Unappropri ate
Transacti on
cost
Unappropri a
Pecm I (50%) BNDES(Direct) (ee) R$ TJ LP +2.77% 15/06/26 TJLP + 3.09% 8.461 4.465 710.831 2.072 708.438 8.461 4.844 740.449 2.312 737.917
Pecm I (50%) IDB (ff) USD LIBOR +3.50% 15/05/26 Libor + 4.67% 8.829 5.210 145.201 709 140.700 8.808 5.296 158.142 779 153.625
Pecm I (50%) IDB (gg) USD LIBOR +3.00% 15/05/22 Libor + 4.16% 8.965 4.583 166.106 705 162.228 8.939 5.374 184.506 791 179.924
Pecm II BNDES(Direct) (e) R$ TJ LP +2.18% 15/06/27 2,30% 7.256 6.501 683.954 1.846 679.299
Pecm II BNDES(Direct) (f) R$ IP CA +TR BNDES +2.18% 15/06/27 2,32% 1.611 1.130 137.158 53.256 189.284
Pecm II BNB (g) R$ 10,00% 31/01/28 10,17% 4.287 4.211 247.187 - 242.976
Chile (50%) Banco Credit Suisse (hh) USD 8,125% 15/04/15 0,00% - - 6.608 58 6.666 - - 10.519 183 10.701
Chile (50%) Banco Credit Suisse (ii ) USD 8,000% 15/04/15 0,00% - - 4.405 39 4.444 - - 7.013 120 7.134
Parnaba IV(35%) Banco BTGPact ual (jj) R$ CDI+2.28% 29/01/14 0,00% - - - - - - - 24.500 1.796 26.296
Parnaba III (35%) Banco Bradesco (kk) R$ CDI+2.53% 30/07/14 2,53% 199 109 42.000 881 42.772 - - 42.000 493 42.493
39.608 26.209 2.143.450 59.566 2.176.806 26.208 15.514 1.167.129 6.474 1.158.089
Unappropri ate
Unappropri a
Current 2.708 163.355 59.566 220.213 2.481 160.876 6.475 164.870
Non-current 23.501 1.980.094 - 1.956.593 13.033 1.006.253 - 993.219
Consoli dated
30/06/14 31/12/13
Eneva S.A.
as of June 30, 2014

21 of 64

Porto do Itaqui Gerao de Energia SA (Itaqui)

(a) The National Social and Economic Development Bank (BNDES) released the entire R$
784 million of the long-term loan to Itaqui relating to subcredits A, B and C, incurring an
annual cost of TJLP + 2.78%. The financing facility has a term of 17 years, with 14 years
repayment and a grace period on the principal of until July 2012. Subcredit D, intended for
social investments (BNDES Social) of R$ 13.7 million, only incurs TJLP and R$ 11.7 million
has been disbursed to date. The BNDES Social facility has a total term of 9 years, with 6
years repayment and a grace period of until July 2012. The interest earned during the grace
period was capitalized along with the amounts outlaid. The balance of the principal as of
June 30, 2014 therefore stands at R$ 796.7 million. The interest on these loans was
capitalized during the construction phase. This financing is secured by the traditional
guarantee in project finance loans.

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

(c) R$ 99 million of this indirect BNDES line has been released to Itaqui consisting of
subcredits A, B, C, D and E, whose agents are the banks Bradesco and Votorantim This part
of the loan has a total term of 17 years, including 14 years of amortization and a grace period
for interest and the principal of until July 2012. The loan incurs IPCA + BNDES Reference
rate + 4.8% p.a. during the construction stage and IPCA + BNDES Reference rate + 5.3%
during the operational stage. The interest earned during the grace period was capitalized
along with the amounts outlaid. The balance of the principal as of June 30, 2014 therefore
stands at R$ 113.9 million. The interest on these loans was capitalized during the
construction phase. This financing is secured by the traditional guarantee in project finance
loans.

Eneva S.A.
as of June 30, 2014

22 of 64

16. Loans and financing--Continued

(d) The entire subcredit F, of the loan mentioned in the previous item equal to R$ 141.8 million,
has been passed through to Itaqui. This part of the loan has a total term of 17 years, with 14
years repayment and a grace period on the principal and interest of until July 2012. The loan
incurs TJLP + 4.80% p.a. during the construction stage and TJLP + 5.30% during the
operational stage. The interest earned during the grace period was capitalized along with the
amounts outlaid. The balance of the principal as of June 30, 2014 therefore stands at R$
155.5 million. The interest on these loans was capitalized during the construction phase.
This financing is secured by the traditional guarantee in project finance loans.

MPX Pecm II Gerao de Energia SA (Pecm II)

(e) By June 30, 2014 Pecm II had received R$ 615.3 million of the R$ 627.3 million earmarked
in subcredits A, B, C, D and L of the long-term financing contract with the BNDES (in nominal
R$, excluding interest during the construction). These subcredits have a total term of 17
years, with 14 years repayment and a grace period on the principal and interest of until July
2013. The loan incurs LTIR + 2.18% p.a. The interest earned during the grace period was
capitalized along with the amounts outlaid. The balance of the principal as of June 30, 2014
therefore stands at R$ 683.9 million. This financing is secured by the traditional guarantee in
project finance loans.

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

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

Eneva S.A.
as of June 30, 2014

23 of 64


UTE Parnaba Gerao de Energia SA (Parnaba I)

(h) On December 27, 2011 Parnaba I borrowed R$ 75 million under a CCB loan (Bank Credit
Note) with BRADESCO, which was endorsed by the parent company. Taken out to finance
the construction of thermoelectric power plants Maranho IV and V, this bridge loan incurs
annual interest of the CDI rate + 3% and matures initially on June 26, 2013, whereupon the
principal and interest is due. A further R$ 75 million was disbursed on February 28, 2012 by
the bank on the same terms as the previous disbursement. R$ 90 million of the principal plus
the interest due was settled on December 28, 2012, when the long-term BNDES loan
described in items (j) and (k) was released. On June 26, 2013 the company renegotiated the
principal balance of R$ 60 million, paying all the interest due up to that date with the new
maturity date changing to September 24, 2013 and the interest held at the CDI rate plus 3%
per annum. On September 24 UTE Parnaba renegotiated the terms of the contract,
changing the maturity date to October 24, 2013 and subsequently to November 24, 2013. On
October 31, 2013 a new renegotiation amended the loan's maturity to December 18, 2014.
The principal and interest will be paid in 15 monthly installments. The balance of the principal
as of June 30, 2014 therefore stands at R$ 28 million.

(i) On December 27, 2011 Parnaba I borrowed R$ 125 million under a CCB loan (Bank Credit
Note) with Banco Ita BBA, which was endorsed by the parent company. Taken out to
finance the construction of thermoelectric power plants Maranho IV and V, this bridge loan
incurs annual interest of the CDI rate + 3% and matures originally on June 26, 2013,
whereupon the principal and interest is due. R$ 60 million of the principal plus the interest
due was settled in December 2012, when the long-term BNDES loan described in items (j)
and (k) was released. On June 26, 2013 the company renegotiated the principal balance of
R$ 65 million, paying all the interest due up to that date with the new maturity date changing
to September 24, 2013 and the interest held at the CDI rate plus 3% per annum. On this
date a new renewal amended the loan's maturity to October 24, 2013 and subsequently to
April 15, 2015. The loan was renegotiated on May 28, 2014 a balance of interest incurred up
to the date was included in the principal, and since then both the principal and interest are
being paid in 7 monthly instalments commencing in October. The balance of the principal as
of June 30, 2014 therefore stands at R$ 49.1 million.

Eneva S.A.
as of June 30, 2014

24 of 64


(j) In December 2012 Parnaba I received R$ 495.7 million as subcredits B and C of the bridge
loan from BNDES, out of a total of R$ 671 million. These subcredits will be amortized over
168 monthly instalments commencing July 15, 2013, along with the interest. The loan incurs
LTIR + 1.88% p.a. The balance of the principal as of June 30, 2014 therefore stands at R$
475.2 million.

(k) In December 2012 Parnaba I also received R$ 204.3 million referring to the entire subcredit
A of the long-term financing contract with the BNDES mentioned in the item above. This
subcredit will be amortized over 13 annual instalments commencing July 15, 2014, along
with the interest. The loan incurs IPCA + BNDES Reference rate + 1.88% p.a. The interest
earned during the grace period was capitalized along with the amounts outlaid. The balance
of the principal as of June 30, 2014 therefore stood at R$ 225.1 million. This financing is
secured by the traditional guarantee in project finance loans.

UTE Parnaba II Gerao de Energia SA (Parnaba II)

(l) On March 30, 2012 the Parnaba II project secured R$ 100 million via a CCB loan from
Banco Ita BBA, endorsed by the parent company. Originally maturing on September 30,
2013 for the payment of principal and interest, this bridge loan was used to finance the
building of the Maranho III thermal power plant. Upon maturity this bridge loan incurs
annual interest of the CDI rate + 3% and matures on September 30, 2013, whereupon the
principal and interest is due. The company renegotiated the loan, altering its maturity date to
December 30, 2013. The loan was subsequently renegotiated, changing its maturity to
December 30, 2014 and an additional R$ 100 million was borrowed, maturing on December
30, 2014. The balance of the principal as of June 30, 2014 therefore stands at R$ 200
million.

(m) In May 2012 Parnaba II borrowed R$ 325 million under a CCB loan from Caixa Econmica
Federal, which was endorsed by the parent company. Taken out to finance the construction
of thermoelectric power plant Maranho III, this bridge loan incurs annual interest of the CDI
rate + 3% and originally matures on November 07, 2013, whereupon the principal and
interest is due. A portion of R$ 125 million has been released, in addition to two portions of
R$ 100 million, on May 08, 2012, May 15, 2012 and May 30, 2012. Upon maturity the
company renegotiated the loan, altering its maturity date to December 30, 2013. R$ 45
million of the principal has been repaid to date, in addition to the interest hitherto incurred,
and the remaining amount has been renegotiated to December 30, 2014. The balance of the
principal as of June 30, 2014 therefore stands at R$ 280.0 million.

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

Eneva S.A.
as of June 30, 2014

25 of 64

Eneva SA (Eneva)
(o) On December 16, 2013 Eneva renegotiated the R$ 105.8 million of CCBs (Bank Credit
Notes) from Banco Ita BBA S.A., paying all the interest due up to that date with the new
maturity date changing to December 16, 2014. The cost will be CDI plus 2.65% per annum
with the interest and principal being paid at the end of the loan.
(p) On September 27, 2012 the parent company Eneva S.A issued a CCB (Bank Credit Note)
via Banco Citibank S.A. for R$ 101,250 maturing on September 27, 2013. The interest
agreed was 100% of the CDI rate +1.15% per annum and is due upon maturity, on
September 27, 2013. On this date Eneva S/A renewed this agreement, changing its maturity
date to September 22, 2014 and changing the interest rate to CDI plus 2.95% per annum.
(q) On September 27, 2012 Eneva took out a loan equal to USD 50,000 from Banco Citibank
S.A. under a Credit Agreement, in due accordance with BACEN Resolution 4131. This loan
is subject to interest of Libor + 1.26% p.a. and will be paid quarterly. The principal will be
paid semi-annually, with a grace period of September 26, 2014 and the contract expiring on
September 27, 2017. Eneva S.A. took out a swap from Citibank in order to hedge this loan
against exchange variance. See Note 18.

(r) On December 13, 2012 Eneva issued a CCB (Bank Credit Note) via Banco BTG Pactual for
R$ 101.9 million maturing on December 13, 2013. Upon maturity the line was renegotiated,
altering its maturity date to December 09, 2014. The interest will be paid quarterly at the cost
of the CDI rate plus 3.75% p.a. The principal will be paid in full upon maturity.

(s) On February 07, 2013 Eneva issued a CCB (Bank Credit Note) via Banco BTG Pactual for
R$ 350 million maturing on August 06, 2013. The interest agreed was 100% of the CDI rate
2.95% per annum and is due upon maturity. On August 06, 2013 the company renegotiated
the loan, altering its maturity date to December 02, 2013. A new renegotiation extended the
debt's maturity date to June 09, 2015, with interest paid quarterly at the cost of CDI + 3.75%
p.a. and the principal paid on maturity.

(t) On December 09, 2013 and December 26, 2013 Eneva issued two CCBs (Bank Credit
Notes) via Banco BTG Pactual for the individual amounts of R$ 100 million on December 09,
2013 and R$ 270 million on December 26, 2013, both maturing on December 09, 2014. The
interest agreed was 100% of the CDI rate 3.75% per annum and is due quarterly.

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

(v) Eneva took out a loan from Citibank S.A of R$ 42 million (in the form of a CCB) on
November 01, 2013, maturing on November 03, 2014. The interest will be paid quarterly at
the cost of the CDI rate plus 4.00% per annum and the principal will be paid upon maturity.

Eneva S.A.
as of June 30, 2014

26 of 64

(w) On December 09, 2013 Eneva issued a Banco Citibank CCB (Bank Credit Note) for R$ 100
million maturing on December 09, 2014. The principal and interest will be paid at maturity at
the cost of the CDI rate plus a spread of 4.00%.
(x) On December 05, 2013 Eneva issued a Ita BBA CCB (Bank Credit Note) for R$ 200 million
maturing on December 05, 2014. The interest agreed was 100% of the CDI rate plus 2.65%
per annum with principal and interest due upon maturity.

(y) On December 09, 2013 Eneva issued a Ita BBA CCB (Bank Credit Note) for R$ 210 million
maturing on December 09, 2014. The interest agreed was 100% of the CDI rate plus 2.65%

(z) As a result of the negotiations of OGX Maranho (now Parnaba Gs Natural), Eneva took
out a loan from Banco Santander of R$ 66.6 million (CCB) on November 04, 2013, maturing
on January 15, 2015. The interest will be paid monthly at the cost of the CDI rate plus:
3.25% per annum until June 14, 2014, 3.75% per annum until September 14, 2014 and
4.25% until the full settlement of the CCB. The entire CCB was settled in March 2014 along
with the interest incurred.

(aa) As a result of the negotiations of OGX Maranho (now Parnaba Gs Natural), Eneva took
out a loan from Morgan Stanley of R$ 66.6 million (CCB) on November 04, 2013, maturing
on January 15, 2015. The interest will be paid monthly at the cost of the CDI rate plus:
3.25% per annum until June 14, 2014, 3.75% per annum until September 14, 2014 and
4.25% until the full settlement of the CCB. The entire CCB was settled in March 2014 along
with the interest incurred.

(bb) As a result of the negotiations of OGX Maranho (now Parnaba Gs Natural), Eneva took
out a loan from Ita BBA of R$ 66.6 million (CCB) on November 04, 2013, maturing on
January 15, 2015. The interest will be paid monthly at the cost of the CDI rate plus: 3.25%
per annum until June 14, 2014, 3.75% per annum until September 14, 2014 and 4.25% until
the full settlement of the CCB. The entire CCB was settled in March 2014 along with the
interest incurred.

(cc) On January 29, 2014 Eneva issued a Ita BBA CCB (Bank Credit Note) for R$ 80 million
maturing on January 19, 2016. The interest agreed was 100% of the CDI rate plus 3.15%

(dd) On May 12, 2014 Eneva issued 4 CCBs (Bank Credit Notes) to the banks Ita BBA, BTG
Pactual, Citibank and HSBC, which jointly amounted to R$ 100 million and mature on August
12, 2014. The interest agreed was 100% of the CDI rate plus 3% per annum with principal
and interest due upon maturity.

Eneva S.A.
as of June 30, 2014

27 of 64

Porto do Pecm Gerao de Energia SA (Pecm I)

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

(ff) To top up the direct loan from the BNDES, Pecm I has a direct loan from the Interamerican
Development Bank BID ("A loan"), worth a total USD 147 million, of which USD 143.78
million has been released thus far (equal to R$ 291,820 as of June 30, 2014). The A Loan
has an annual cost of Libor + 3.5% and a total term of 17 years, with 14 years repayment
and a grace period on the principal of until July 2012. The balances of the principal and
interest stated in the table above refer to 50% of the original balances, and take into account
the 50% interest of EDP Energias do Brasil S.A.

(gg) To top up the direct loan from the BNDES, Pecm I has an indirect loan from the
Interamerican Development Bank BID ("B loan"), worth a total USD 180 million, of which
USD 176 million has been released thus far (equal to R$ 333,622 as of June 30, 2014). The
onlending banks are Grupo Banco Comercial Portugus, Calyon and Caixa Geral de
Depsito. The B Loan has a total term of 13 years and a cost of 3.0%, with 10 years
repayment and a grace period on the principal of until July 2012. The balances of the
principal and interest stated in the table above refer to 50% of the original balances, and take
into account the 50% interest of EDP Energias do Brasil S.A.

MPX Chile Holding Ltda (MPX Chile)

(hh) On April 13, 2011 MPX Chile took out an offshore loan from Banco Credit Suisse, endorsed
by the parent company. The loan is denominated in US dollars amounting to USD 15 million
(equal to R$ 13,332 as of June 30, 2014), charged fixed annual interest of Libor + 8.13%.
The principal and interest will be paid semi-annually, with a grace period for the principal of
until April 15, 2013 and the contract expiring on April 15, 2015. The balances of principal and
interest shown in the table above account for 50% of the original balances.
(ii) On June 29, 2011 MPX Chile took out an offshore loan from Banco Credit Suisse, endorsed
by the parent company. The loan is denominated in US dollars amounting to USD 10 million
(equal to R$ 8,888 as of June 30, 2014), charged fixed annual interest of Libor + 8%. The
principal and interest will be paid semi-annually, with a grace period for the principal of until
April 15, 2013 and the contract expires on April 15, 2015. The balances of principal and
interest shown in the table above account for 50% of the original balances.

Eneva S.A.
as of June 30, 2014

28 of 64

UTE Parnaba IV Gerao de Energia SA (Parnaba IV)

(jj) On April 29, 2013 the Parnaba IV project borrowed R$ 70 million under a CCB contract
(Bank Credit Note) with Banco BTG Pactual. Taken out to finance the construction of a
natural gas thermal power plant with Kinross Brasil Minerao S.A., this bridge loan incurs
annual interest of the CDI rate plus 2.28% per annum and matures on January 29, 2014,
whereupon the principal and interest is due. This loan was settled at maturity.

UTE Parnaba III Gerao de Energia SA (Parnaba III)

(kk) On November 25, 2013 the Parnaba III project secured a bridge loan from Banco
Bradesco of R$ 120 million, initially maturing on January 09, 2014. A new maturity date was
agreed for January 31, 2014. The cost of the bridge loan is CDI plus 2.53% per annum.
Principal and interest will be paid at the end of the operation. A promissory note was issued
to replace this loan on the same terms and with a new maturity date of July 30, 2014.

The portions of the loans and financing classified in non-current liabilities as of June 30, 2014
have the following payment schedule:

Consolidated
Maturity
2015 127,833
2016 328,491
2017 281,179
2018 to final maturity 1,253,084

1,990,587

Financial covenants

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

The financing contracts relating to the ventures Porto do Pecm Gerao de Energia S.A., MPX
Pecm II Gerao de Energia S.A., UTE Porto do Itaqui Gerao de Energia S.A. and UTE
Parnaba Gerao de Energia S.A. have minimum debt service coverage indexes that measure
the payment capacity of the financial expense in relation to EBITDA. .

All the financial covenants had been performed as of June 30, 2014.

Eneva S.A.
as of June 30, 2014

29 of 64


Non-financial covenants--Continued

A number of financing contracts also have nonfinancial covenants, which are usual for the market
and have been summarized below. As of December 31, 2013 all these covenants were being
performed.

Obligation to periodically submit financial statements to creditors.

Creditor rights to inspect and visit facilities.

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

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

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

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

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

Restrictions on debt ratios and the procurement of new debt

We did not detect any nonperformance of financial and non-financial covenants as of June 30,
2014.

Eneva S.A.
as of June 30, 2014

30 of 64

17 Taxes and contributions payable


June 30
2014
December
31
2013
June 30
2014
December
31
2013

Corporate Income Tax IRPJ 7 1,763
Social Contribution on Net Income - CSLL - 784
Income Tax Withheld at Source - IRRF 164 6 5,203 6,286
ICMS 1 1 62 634
PIS, COFINS, IRRF and CSL 85 570 9,773 25,552
Tax on Financial Transactions - IOF 241 56 242 58
IPI for importation 1,153 2,594
Importation tax 2,432 3,940
Other 63 76 3,031 6,870

Current 560 709 24,443 45,934

18 Financial instruments and risk management

The management of these financial instruments is done through operating strategies and internal controls,
aimed at liquidity, profitability and security. Our control policy consists of permanently monitoring contract
rates versus market rates. The Company and its subsidiaries do not invest in derivative financial instruments or
any other risky assets on a speculative basis. This is a determination of the financial investment policy.

The estimated realization values of the financial assets and liabilities of the Company and its subsidiaries were
determined through information available in the market and appropriate valuation methodologies. However,
considerable judgment was required in the interpretation of the market data to estimate the most adequate
realization value. Consequently, the estimates below do not necessarily indicate the values that could be realized
in the current exchange market. The use of different market methodologies may have a material effect on the
estimated realizable values.

Eneva S.A.
as of June 30, 2014

31 of 64

See below a description of the consolidated book balances for the financial instruments included in the balance
sheets as of June 30, 2014 and December 31, 2013:

Parent
Company

June 30
2014

December 31
2013

Financial instruments Total Total

Assets

Loans and receivables

Cash and cash equivalents 12,011

110,156
Escrow deposits 39

38
Loans to subsidiaries 973,278

909,327
Accounts receivable from other related parties 12,515

217,337
Accounts receivable from subsidiaries 178,490

123,005

Fair value through profit or loss

Gains on derivative transactions 8,602

4,171

Liabilities

Other financial liabilities

Trade payables 4,860

3,473
Loans and financing 2,263678

2,217,628
Debentures (1)

5,351
Debts with subsidiaries 6,326

4,444
Loans with other related parties 38,337

30,045

Stock options awarded 353,865 350,514

Eneva S.A.
as of June 30, 2014

32 of 64

Consolidated

June 30
2014
December 31
2013

Financial instruments Total Total

Assets

Loans and receivables


277,582
Accounts receivable 214,205

294,396
CCC subsidy receivable 20,722

30,802
Escrow deposits 171,120

118,644
Loans to subsidiaries 586,820

191,968
Accounts receivable from other related parties 13,858

218,680
Accounts receivable from subsidiaries 171,095

117,372



4,171

Liabilities

Other financial liabilities

Trade payables 350,716

Loans and financing in R$ 5,091,539

6,210,520
Debentures (1)

5,350
Debts with subsidiaries 80,156

145,412
Debits with related parties 177,970

162,308
Contractual retentions 57,091

Stock options awarded 353,865 350,514

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

18.1 Fair value of financial instruments

The concept of fair value states that assets and liabilities should be valued at market prices, in the case of liquid
assets, or by using mathematical pricing methods, in other cases. The hierarchy level of the fair value gives
priority to unadjusted prices quoted on an active market. A part of the company's accounts has the fair value
equal to book value, these accounts include cash equivalents, payables and receivables, bullet debts and short-
term. The accounts whose fair value differs from book value can be seen below. short-term investments are
stated at fair value, due to their classification at fair value through profit and loss.

Eneva S.A.
as of June 30, 2014

33 of 64

Consolidated

June 30, 2014

Prices
observable in
an active
market
Pricing with
observable
prices
Pricing without
observable
prices
(Level I) (Level II) (Level III)

Stock options awarded (353,865)
Derivatives 8,602

Balance at June 30, 2014 362,467

December 31, 2013

Prices
observable in
an active
market
Pricing with
observable
prices
Pricing without
observable
prices
(Level I) (Level II) (Level III)

Securities
Stock options awarded (350,514)
Derivatives 4,171

Balance at December 31, 2013 (346,343)

18.2 Derivatives, hedges and risk management

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

The protection guidelines are applied according to exposure type. The risk factors posed by foreign currencies
should be neutralized in the short term (within 01 year), and the protection may be extended for longer.
Decision taking regarding the risk posed by interest rates and inflation on liabilities acquired will be assessed in
terms of the economic and operational context and when Management deems the risk to be material.

Eneva S.A.
as of June 30, 2014

34 of 64

18.2.1 Notional and fair value of derivative instruments

Forward currency contract - acquisition of US dollars (USD)

June 30, 2014 December 31, 2013

Maturity
Notional
USD MTM
Notional
USD MtM

Eneva SA
Long position USD
Morgan Stanley - - 59,207 4,171

Total USD - - 59,207 4,171

Swap Cross-Currency

June 30, 2014

December 31, 2013

Maturity Notional Assets Liabilities MTM Notional MtM
Eneva SA
Libor USD | DI
Citibank September 27, 2017 101,250 111,527 101,768 9,759 101,250 15,650

Total Swap 101,250 111,527 101,768 9,759 101,250 15,650

6/30/2014 12/31/2013

Maturity Notional Assets Liabilities MTM Notional MtM
Eneva SA

Cross-Currency Swap

Credit Suisse 7/15/2015
22,251 2,470 3,627 (1,157) - -
Total Swap
22,251 2,470 3,627 (1,157) - -

18.2.2 Market risks

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

18.2.2.1 Risk of oscillation in commodity prices

In Eneva's case, this risk is exclusively posed by the coal price, which is recorded, according to the formation of
inventory for generating energy in the thermoelectric power plants. The risk is due to the mismatch of the term
between the purchase and sale dates (energy generation).

The inventory coal price is established and will be converted into revenue, according to the remuneration for the
energy generation, according to the PPA rules
1
. The period between the purchase of the cargo and its use for
generating energy constitutes the price change risk incurred by the thermoelectric power plant.

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

Eneva S.A.
as of June 30, 2014

35 of 64

a) Risk management

The coal price risk is managed by structuring hedge transactions in the future coal market without physical
settlement. Eneva is seeking resources in the domestic market whose market for this type of operation is still
incipient to mitigate the risk posed by its coal inventory by structuring hedges.

In the current scenario, Eneva has experienced high turnover of its coal inventory due to the lower production of
energy at hydroelectric plants and the need for thermal power plants to work around the clock. In this context,
the Company does not consider material the risk of changes in coal prices that would justify the structuring of a
hedge operation. At the end of the first half the Company did not therefore have any such derivatives.

18.2.2.2 Exchange risk

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

a) Risk management

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

(b) Investment in fixed assets (capex)

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

(c) Coal inventory

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

(d) Loans and Financing

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

Risk for Fair Scenario I Scenario II

the position value
(25%
increase)
(50%
increase)

Eneva SA
Cross-Currency Swap (hedge) Dollar devaluation 111,527 139,409 167,291
Dollar loan Dollar valuation (110,621 ) (138,276 ) (165,932 )

Net exposure

906 1,133 1,359

Eneva S.A.
as of June 30, 2014

36 of 64

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

Reference rate: PTAX 800 Venda (2.2025 on June 30, 2014) of the Brazilian Central Bank

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

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

(e) Operations hedged by derivative instruments

Dollar loan
at UTE Porto do Pecm

Hedge accounting

The investment in capex of Energia Pecm (construction of the thermal power plant) will consist of 75% long-
term financing, partly in US dollars, and 25% of company capital. The long-term financing agreements were
signed with the Inter-American Development Bank (BID) and the National Social and Economic Development
Bank (BNDES) on July 10, 2009. To finance its capex requirements in the period prior to July 10, 2009 it was
necessary to take out a bridge loan from Citibank, which will be repaid using funds provided under said
financing agreements.

As most of the investment is denominated in US dollars and Euros and its future revenue will be generated in
Brazilian reais, derivative instruments have been taken out for hedge purposes. On April 01, 2009 the Company
used hedge accounting in order to hedge against the exchange variance on the long-term US dollar financing
loans taken out from IDB. The derivative instrument used is an NDF maturing in October 2012 with a notional
value of USD 327 million. (USD 163.5 million equal to 50% of the interest of Eneva S.A.). This NDF was rolled
over on September 25, 2012 with a notional value of USD 327 million and maturing between November 2012
and May 2015.

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

Eneva S.A.
as of June 30, 2014

37 of 64

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

2014

Net income
Shareholde
rs' equity

Hedge derivatives
Derivative gains (losses) (1,741 ) 1,149

2013

Net income
Shareholde
rs' equity

Hedge derivatives
Derivative gains (losses) (3,465 ) 2,287

On April 01, 2011 the Company used hedge accounting in order to hedge against the libor interest for the
amortization period on the long-term US dollar financing loans taken out from IDB. The derivative instrument
designated for this relation is an interest-rate cash-flow float/fixed maturing between October 2012 and October
2024, whose notional amounts refer to the expected accumulated disbursement tranches of the long-term
interest owed to IDB.

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

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

2014

Net income
Shareholde
rs' equity

Hedge derivatives
Derivative losses (3,114) 2,055

2013

Net income
Shareholde
rs' equity

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

Eneva S.A.
as of June 30, 2014

38 of 64

18.2.2.3 Interest rate risk

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

(a) Cash flow risk related to floating interest rates

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

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

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

Interest rate sensitivity

The debt restated by the interbank deposit rate - DI had a principal of R$ 2.62 billion and balance of R$ 2.74
billion as of 6/30/2014. 81.21% of this matures by the end of 2014 and 96.92% by the first half of 2015. The
volatility posed by risk factor is thereby substantially reduced. However, as this is a floating rate in a scenario of
rising interest rates, see below the financial loss if the interest rate curve were shifted by 25% and 50%,
respecting the payment terms of each facility.

In the case of a parallel shift of the interest curve to above 25%, the balance of the debt would rise by R$ 39.78
million. If the increase were 50%, the balance would rise by R$ 78.31 million. For the Company, these amounts
are directly related to the risk of a floating interest rate (cash flow risk).

Future
market
value
Future
value
Future
value

Risk

(25%
increase)
(50%
increase)
ENEVA SA
Cash Flow Risk related to
Increase in Interest
Rate 3,072,714 3,112,498 3,151,033
Liability indexed to CDI

Outstanding (Principal + Interest) 3,072,714 3,112,498 3,151,033
Increase in financial expense - 39,783 78,319

(*) The scenarios do not reflect the company's projections for interest rates.
This assessment merely aims for compliance with the legislation.
Method: parallel upwards shift in DI rate of 25% and 50%
Eneva S.A.
as of June 30, 2014

39 of 64

18.2.3 Credit risk

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

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

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

Consolidated

June 30
2014
December
31
2013

Positions of credit risk


277,582
Trade receivables 214,205

294,396

4,171
CCC subsidy receivable 20,722

30,802
Escrow deposits 171,120

118,644

Consolidated credit accounts 502,422

725,595

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

Eneva S.A.
as of June 30, 2014

40 of 64

18.2.4 Liquidity risk

The Company and its subsidiaries monitor their liquidity levels, based on expected cash flows versus the amount
of cash and cash equivalents at hand. Managing the liquidity risk means maintaining cash, sufficient securities
and capacity to settle market positions. The amounts recognized as of June 30, 2014 approach the operations'
settlement values, including estimated future interest payments (see note 1).

Consolidated

June 30, 2014

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

Liabilities

Trade payables 350,716 350,716
Related parties 258,126 258,126
Loans and financing 2,516,787 1,151,668 575,676 1,271,598 2,525,330 8,041,059
Debentures
Contractual retention 57,091 57,091
Financial instruments
Derivatives 4,388 3,969 5,124 13,481

2,871,891 1,212,728 838,926 1,271,598 2,525,330 8,720,473

Consolidated

December 31, 2013

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

Liabilities

Trade payables 331,216 331,216
Related parties 306,545 306,545
Loans and financing 676,967 2,570,541 1,079,040 1,324,391 2,696,265 8,347,204
Contractual retention 84,789 84,789
Financial instruments
Derivatives 3,971 2,725 4,694 11,390

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

19 Provision for contingencies

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

The Company and its subsidiaries are party to judicial proceedings, involving labor and civil issues to the
estimated amount of R$ 177,567 (R$ 108,773 as of December 31, 2013). Their legal advisors rate the proceedings
as a possible loss, and management does not believe it is necessary to record a provision for them.

Eneva S.A.
as of June 30, 2014

41 of 64

Downtime Costs (ADOMP)

On January 07, 2014 Pecm I and Itaqui filed legal proceedings against Aneel contesting the calculation of
downtime, as the CCEARs stipulate the use of a mobile average of 60 months of effective uptime. The Company
provisions for downtime costs in accordance with the contractual interpretation.

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

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

Delay in commercial start-up

ANEEL - Brazilian Electricity Regulatory Agency postponed the deadline to August 18, 2014 to continue
discussions with the Company regarding the adequacy of the obligations proposed to supply energy for the
Parnaba Thermoelectric Plant II. The payment of any fee related to the delayed start of commercial operation of
Parnaba II remains suspended until the reported date. On August 5, 2014, Aneel ruled desfavoralmente the
proposal of the Company, which submitted a new proposal as described in note 29.

At this point in time management, even when involving experts, is incapable to make a reliable estimate of the
obligation, due to the uncertainty of the outcome of the negotiation with Aneel, as a consequence of which this
item is only being disclosed as a contingency.

20 Shareholders equity

As of June 30, 2014 and December 31, 2013 respectively, the Company's share capital consists of 702,524,469
(seven hundred and two million five hundred and twenty-four thousand, four hundred and sixty-nine)
nominative common shares, with no par value and the authorized capital is 1.2 billion book-entered common
shares with no par value.

As of June 30, 2014 the Company's share capital was R$ 4,652,273 (R$ 4,532,314 as of December 31, 2013),
consisting of common shares distributed as follows:

June 30 2014 %
December
31 2013 %

Shareholder
Eike Fuhrken Batista 145,704,988 20.7 145,704,988 20.7
Centennial Asset Mining Fund LLC (*) 20,208,840 2.9 20,208,840 2.9
Centennial Asset Brazilian Equity
Fund LLC (*) 1,822,065 0.3 1,822,065 0.3
E.ON 266,269,556 37.9 266,269,556 37.9
BNDESPAR 72,650,210 10.3 72,650,210 10.3
Other 195,868,810 27.9 195,868,810 27.9

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

(*) Controlled by Eike Fuhrken Batista.

Eneva S.A.
as of June 30, 2014

42 of 64

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

Share
Capital

Quantity
Date of shares
(R$
thousand) Description

December 2012 578,241,732 3,731,734 Opening balance
January 2013 147,480 232 Capital increase company plan
February 2013 27,000 95 Capital increase company plan
April 2013 34,500 114 Capital increase company plan
May 2013 29,250 99 Capital increase company plan
September 2013 124,031,007 800,000 Capital increase
October 2013 13,500 40 Capital increase company plan
May 2014 - 119,959
Capital increase shareholder
contribution

June 30, 2014 702,524,469 4,652,273 Closing balance

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

The Company's capital was increased in February 2013 by the Board of Directors' meeting held February 06,
2013, ratifying the issuance of 27,000 new common shares, with no par value, resulting from the exercising of
stock options awarded under the Company's stock options program. The number of Company shares
accordingly changed to 578,416,212.

The Company's capital was increased in April 2013 by the Board of Directors' meeting held April 05, 2013,
changed to 578,450,712.

The Company's capital was increased in May 2013 by the Board of Directors' meeting held May 08, 2013,
changed to 578,479,962.

On September 16, 2013 the Board of Directors' meeting ratified the Company's capital increase, as approved by
the Board of Directors' meeting on July 03, 2013, of R$ 799,999,995.15, within the authorized capital limit, as a
result of the subscription and full payment of the 124,031,007 new common registered shares with no par value.
The number of Company shares accordingly rose from 578,479,962 to 702,510,969.

The Company's capital was increased in October 2013 by the Board of Directors' meeting held October 21, 2013,
changed to 702,524,469.

On August 01,2014, was approved in the Board of Directors, the capital increase of the Company, as approved
by the Board of Directors held on May 05, 2014 in the amount of R $ 174,728,680.26 within the limit of
authorized capital, by reason of the subscription and payment of 137,581,638 new ordinary no par value shares.
Thus, the number of shares of the Company increased from 702,524,469 to 840,106,107. Of the total capital
increase, the amount of R $ 119,959,257.16, relating to the subscription of co-driver E.ON, was paid on May
20,2014.

Eneva S.A.
as of June 30, 2014

43 of 64

21 Earnings per share

Basic and diluted earnings per share

The basic and diluted earnings per share were calculated by dividing the earnings of the year attributable to the
controlling and noncontrolling shareholders of the Company as of June 30, 2014 and 2013 and the respective
average number of common shares in circulation, as per the table below:

2014 2013

Common Total Common Total

Basic and diluted numerator
Loss attributable to shareholders
parent companies (184,211) (184,211) (250,901 ) (250,901 )

Basic and diluted denominator
Weighted share average 578,416,212 578,416,212 578,416,212 578,416,212

Loss per share (R$) basic (0.3185) (0.3185) (0.4338 ) (0.4338 )

As of June 30, 2014 and 2013 there is no material difference between the loss per basic and diluted share.

22 Share-based remuneration plan

The Company's stock options break down as follows:

Parent company and
consolidated

June 30
2014
December 31
2013

Stock options granted - Shareholders' Equity
Granted by Company 38,305 36,231
Granted by Controlling shareholder 315,560 314,283

353,865 350,514

Parent company and
consolidated

June 30
2014
December 31
2013

Expenses incurred on share options awarded 3,351 5,714

Eneva S.A.
as of June 30, 2014

44 of 64

The stock option plans were released in two different modalities: the primary plan, which consists of awarding
call options, resulting in the issuance of new shares by the Company or the assignment of treasury stock; and
secondary plans consisting of options offered by the shareholder Mr. Eike Batista to Company executives, which
in this case does not entail a dilution of the share capital. It is noteworthy that the most of the executives no
longer in Enevas team.

(a) Stock option granted by the Company

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

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

On May 24, 2012 the split-off was approved to CCX Carvo da Colmbia S.A., which accounted for 20.69% of
Company's assets. Following the split-off the share value was reduced by the same proportion. To maintain the
value of the options awarded, a discount was awarded in the strike price of options not exercised by the date the
two companies were split off.

A further 75,000 options were awarded on May 31, 2012. Three more batches were awarded in the 3rd quarter
of 2012, totaling 165,000 options.

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

Plan 1: 528,000 options awarded on November 26, 2007
Plan 2: 3,300,000 options on December 01, 2010
Plan 2.1: 30,000 options on April 27, 2012 - the second block of Plan 2.
Plan 2.2: 60,000 options on June 02, 2012 - the third block of Plan 2.
Plan 3: 2,098,500 options on November 24, 2011
Plan 3.1: 225,000 options on May 31, 2012 - the second block of Plan 3.
Plan 3.2: 52,500 options on July 10, 2012 - the third block of Plan 3.
Plan 3.3: 22,500 options on July 20, 2012 - the fourth block of Plan 3.
Plan 3.4: 90,000 options on August 01, 2012 - fifth block of Plan 3, and
Plan 3.5: 3,000,000 options on December 13, 2012 - the sixth block of Plan 3.

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

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

Plan

Date
Awarded

Vesting
period
(years)

Initial date
of maturity

Date rights
expire
Original
Amount
Awarded
(
a
)

Original
Strike
Price (
a
)

Strike Price
Restated by
IPCA(
b
)

Plan 1 11/26/2007 5 11/26/2008 11/26/2013 528,000 0.76
Plan 2 12/1/2010 7 12/14/2011 12/14/2018 3,300,000 2.97 3.93
Plan 2.1 4/27/2011 7 4/27/2013 4/27/2020 30,000 4.13
Plan 2.2 6/2/2012 7 6/2/2013 6/2/2020 60,000 2.97
Plan 3 11/24/2011 7 11/24/2012 11/24/2019 2,098,500 5.14 6.01
Plan 3.1 5/31/2012 7 5/31/2013 5/31/2020 225,000 5.14 5.85
Plan 3.2 7/10/2012 7 7/10/2013 7/10/2020 52,500 3.91 4.45
Plan 3.3 7/20/2012 7 7/20/2013 7/20/2020 22,500 4.13 4.70
Plan 3.4 8/1/2012 7 8/1/2013 8/1/2020 90,000 4.23 4.79
Plan 3.5 12/13/2012 7 12/13/2013 12/13/2020 3,000,000 4.53 4.98

9,406,500

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

Eneva S.A.
as of June 30, 2014

45 of 64

The table below shows the changes in the options plan in the period.
Plan awarded by the Company -
number of stock options
Plan 1 Plan 2 Plan 2.1 Plan 2.2 Plan 3 Plan 3.1 Plan 3.2 Plan 3.3 Plan 3.4 Plan 3.5
Balance at March 31, 2014 - 1,740,000 - - 1,424,250 225,000 52,500 22,500 60,000 2,850,000
Exercised - - - - - - - - - -
Cancelled - (540,000) - - (483,300) (157,500) - - - (1,720,000)
Awarded - - - - - - - - - -
Expired - - - - - - - - - -
Balance at June 30, 2014 - 1,200,000 - - 940,950 67,500 52,500 22,500 60,000 1,130,000

To determine the fair value of the options we used the Merton model (1973)
2
, which is a variant of the Black &
Scholes (1973)
3
model which considers dividend payments. A number of assumptions were made for the model's
entry variables. Like:

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

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

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

Service conditions and performance conditions outside the market inherent to the transactions are not taken
into account when determining fair value.

2
MERTON, R. Theory of Rational Option Pricing. Bell Journal of Economics and Management Science, 4 (Spring 1973),
141-83
3
BLACK, F.; SCHOLES, M. The pricing of options and corporate liabilities. Journal of Political Economy, Chicago, v. 81, p.
637-654, 1973

Eneva S.A.
as of June 30, 2014

46 of 64

The table below shows the assumptions made to calculate the fair value of the options awarded by the Company:
Fair Value Assumptions
Plan 2 Plan 2.1 Plan 2.2 Plan 3 Plan 3.1 Plan 3.2 Plan 3.3 Plan 3.4 Plan 3.5
Number of exercisable options (matured) 150,000 - - 104,550 7,500 5,250 2,250 6,000 113,000
Average outstanding term (years) 2.87 - - 3.45 3.98 3.68 3.71 3.74 4.11
Fair value of options awarded in R$ (
a
) 0.09 - - 0.05 0.08 0.11 0.11 0.10 0.11
Price of the share in R$ (
b
) 1.23 - - 1.23 1.23 1.23 1.23 1.23 1.23
Strike price of the options in R$ (
c
) 3.93 - - 6.01 5.85 4.45 4.70 4.79 4.98
Average expected volatility (per annum) (
d
) 54.2% - - 53.4% 44.5% 48.3% 48.7% 50.3% 52.3%
Risk-free interest rate (per annum) (
e
) 5.42% - - 5.63% 5.70% 5.69% 5.70% 5.70% 5.73%
Effects on net income in the period in R$ k 298 - - 359 27 18 8 23 461
Intrinsic value in R$ k (
f
) - - - - - - - - -

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

(b) The closing price of the share ENEV3

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

(d) To calculate the volatility of the share the continuous returns from the price history of the share ENEV3
were used.

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

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

(b) Stock options granted by the Shareholder Mr.Eike Batista

The Plans awarded by shareholder includes call options granted to executives of the Company. This plan is a
means of remunerating and retaining managers and executives who the shareholder views as key players in the
Company's success. These options do not generate any dilution for the other shareholders. On June 30, 2014
most of these executives are no longer part of the staff of the Eneva S.A..

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

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

Eneva S.A.
as of June 30, 2014

47 of 64

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

Plan
Date
awarded
Vesting
period
(years)
Initial date
of maturity
Date rights
expire
Original
amount
awarded
Original
strike price

Shareholder 4/28/2008 5 12/13/2008 12/13/2013 3,354,120 0.01
Shareholder 4/28/2008 10 12/13/2008 12/13/2018 20,198,040 0.01

23,552,160

The table below consolidates the change in stock options awarded by the shareholder to
beneficiaries providing services to the Company:

Plan awarded by the Shareholder - number of stock
options
Shareholde
r Plan

Balance at December 31, 2013 2,904,812
Exercised
Cancelled (2,873,132)
Awarded
Expired

Balance at June 30, 2014 31,680

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

Fair Value Assumptions
MPX Shareholder Plan
Number of exercisable options (matured) 322,652
Average outstanding term (years) 2.49
Fair value of options awarded in R$ (
a
) 1.20
Price of the share in R$ (
b
) 1.23
Exercise price of the options in R$ 0.01
Average expected volatility (per annum) (
c
) 56.59%
Risk-free interest rate (per annum) (
d
) 11.43%
Effects on net income in the period in R$ k 1,278
Intrinsic value R$ k 3,544

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

(b) The closing price of the share ENEV3

(c) To calculate the volatility of the share the continuous returns from the price history of the share ENEV3
were used.

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

Eneva S.A.
as of June 30, 2014

48 of 64

23 Operating revenue

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

Consolidate
d

June 30
2014
December 31
2013

Gross revenue 1,202,749 656,650
Minus
Sales taxes (126,671) (65,418 )

Total net revenue 1,076,078 591,232

24 Costs and expenses by nature

6/30/2014 6/30/2013 6/30/2014 6/30/2013
Depreciation and amortization (1,105) (905) (96,454) (44,519)
Personnel expenses (14,834) (12,703) (40,238) (37,957)
Outsourced services (17,439) (20,361) (99,658) (48,699)
Rental expenses (2,852) (2,112) (174,805) (70,882)
Expenses incurred on stock options awarded (3,352) (14,902) (5,189) (14,902)
Provision for Investment Devaluation (192) 3 (18,666) (23)
Provision for Unsecured Liabilities (135) (3,923) 111 (3,578)
Cost per Downtime Incident - (25,207)
Material - - (8,036) (2,876)
Insurance - - (10,683) (1,218)
Other expenses 19,249 (1,637) (12,541) (125,740)
Consumables - - (417,501) (248,339)
CCC Incentive - - 14,066 33,658
Electricity for resale - - (55,594) (249,459)
(20,659) (56,540) (950,396) (814,532)
Classified as:
Cost - - (934,382) (730,940)
Administrative and general expenses and stock
options granted (20,659) (56,540) (16,014) (83,616)

Eneva S.A.
as of June 30, 2014

49 of 64

25 Financial income

The Company's financial income breaks down as follows:

6/30/2014 6/30/2013 6/30/2014 6/30/2013
Financial expenses
Debt Charges (144,828) (55,787) (283,582) (145,012)
Monetary variance (15,299) (12,760) (16,204) (15,182)
Loss on derivative transactions (4,124) (2,619) (4,124) 912
Debenture interest/cost (396) (362) (396) (362)
Fair value of debentures - - - -
Financial Advisory Services - - - -
Other (3,984) (80,074) (20,234) (113,753)
(168,630) (151,603) (324,540) (273,397)

Financial revenue
Short-term investments 2,821 31,431 11,310 17,374
Monetary variance 22,323 4,012 25,489 4,570
Gains (losses) on derivative transactions 4,431 9,031 4,431 9,031
Fair value of debentures - (426) - (426)
Other 156 1 1,891 2,092
Related-party income 58,975 - 22,585 -
88,707 44,049 65,706 32,641

Net financial income (79,923) (107,554) (258,834) (240,756)

Eneva S.A.
as of June 30, 2014

50 of 64

26 - Commitments undertaken

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

Compa
ny

Supplier

Subject matter of contract

Signat
ure

Term

Total
contracted
on

Balance
of
contract

Balance
of
contract
June 30,
2014
June 30,
2014
Decembe
r 31, 2013

Pecm
II

AVIPAM TURISMO E TECNOLOGIA
LTDA

Purchase of Flights/Accommodation

12/11/2
012

Not
determi
ned

720

412

416
Pecm
II

BANCO BANKPAR SA

Supply of accommodation
12/11/2
012

12/10/2
014

1,360

697

853
Pecm
II

BRASLIMP TRANSPORTES
ESPECIALIZADOS LTDA

Collection, transportation and disposal of Class II fluid
waste.

11/5/2
013

Not
determi
ned

882

662

882
Pecm
II

CAL TREVO INDUSTRIAL LTDA

Supply of Burnt Lime
5/2/20
13

5/1/201
5

1,119

1,083

1,119
Pecm
II

CARBOMIL QUIMICA S.A

7/29/2
013

5/6/201
5

6,000

4,216

5,249
Pecm
II
COMPANHIA DE INTEGRACAO
PORTUARIA DO CEARA CEARAPORTOS
Regulation of the movement of solid bulk at the Pecm
Port Terminal
3/18/2
014

12/29/2
024

7,674

5,284

763
Pecm
II

COMPANHIA DE INTEGRACAO
PORTUARIA DO CEARA CEARAPORTOS

Supply of Electricity to the Port

8/7/20
12

Not
determi
ned

2,400

1,284

1,658
Pecm
II

E ON GLOBAL COMMODITIES SE

Supply of coal

10/2/2
013

Not
determi
ned

26,700

9,255

9,255
Pecm
II

E ON GLOBAL COMMODITIES SE

Supply of coal
1/2/20
14

12/31/2
014

109,179

54,124

-
Pecm
II
EBM CONSULTORIA E INVESTIMENTOS
LTDA
Technical consultancy services for obtaining long-term
financing from the Banco do Nordeste do Brasil S.A. (BNB).
1/29/2
010
3/31/20
14

1,757
Pecm
II
ELETROMECANICA CAPISTRANO
EIRELI-ME

Services for supporting the commissioning .
9/18/2
013

3/31/20
14

854
Pecm
II
ELETROMECANICA CAPISTRANO
EIRELI-ME
Specialist labor services for the maintenance and
operation of UTE Pecem II.
1/24/2
014

12/31/2
014

4,800

1,737

-
Pecm
II

FORNECEDORA MAQUINAS E
EQUIPAMENTOS LTDA

Provision for Coal Spreading, Stacking and Compacting of
Coal in the Yard.

8/7/20
12

Not
determi
ned

4,153

600

732
Pecm
II

FORSHIP ENGENHARIA S/A
Technical commissioning services at the Pecm II
thermal power plant
1/2/20
13

7/21/20
14

8,500

686

1,596
Pecm
II

GUIMAR ENGENHARIA S.A.

Support for project closure process management

9/28/2
012

Not
determi
ned

2,000

218

449
Pecm
II
ICAL INDUSTRIA DE CALCINAO
LTDA

8/9/20
13

4/22/2
015

785.596

786

786
Pecm
II

MINERAO BELOCAL LTDA

9/3/20
13

5/1/201
5

941.364

285

941
Pecm
II

MINERAO LAPA VERMELHA LTDA

9/9/20
13

2/28/2
015

1,871

388

871
Pecm
II
MONSERTEC MANUTENCAO
INDUSTRIAL LTDA

Maintenance support for scaffolding,
10/25/
2013

10/27/2
015

1,440

586

Pecm
II
NUTRINOR RESTAURANTES DE
COLETIVIDADE LTDA

Provision of meals - breakfast, lunch, dinner and supper
12/7/2
012

7/31/20
14

570.9

43

175
Pecm
II

NATIONAL ELECTRIC SYSTEM
OPERATOR - ONS

Transmission services

5/27/2
014

Not
determi
ned

52,001

24,366

10,589
Pecm
II
PORTO DO PECEM TRANSPORTADORA
DE MINERIOS S/A

Product unloading services for ships .
3/26/2
012

12/31/2
016

6,950

4,150

5,632
Pecm
II
REX EMPREENDIMENTOS
IMOBILIARIOS LTDA

Property rental
1/1/20
09

11/27/2
042

45,283

38,754

39,592
Pecm
II
RH CLEAN SERVICOS PROFISSIONAIS
DE LIMPEZA LTDA

Cleaning Services of the Coal Transfer Towers
1/8/20
13

12/31/2
014

1,263

743

1,102
Pecm
II
RH CLEAN SERVICOS PROFISSIONAIS
DE LIMPEZA LTDA

Provision and availability .
7/2/20
12

3/31/20
14

41
Pecm
II

RIP SERVIOS INDUSTRIAIS LTDA

Specialist Labor for Pre-assembly of Metal Structures.
3/26/2
014

7/31/20
14

7850

107

4,163
Pecm
II

SUPRICEL LOGISTICA LTDA

Burnt Lime Shipping Services
8/9/20
13

4/22/2
015

6112.26

1,365

4,826
Pecm
II

TDG - TRANSMISSORA DELMIRO
GOUVEIA S/A

Connection Bay

3/6/20
14

Not
determi
ned

1,020

874

Pecm
II
ENVIRONMENTAL COMPENSATION

Semace

9/5/20
08
Not
determi
ned

1,500

540

1,500
Pecm
II
AGN CONTABILIDADE SERVIOS
CONTABEIS LTDA
ADMINISTRATIVE SERVICES/OUTSOURCED
SERVICES CONTRACTOR
4/1/20
14

1/31/20
15

1,586

573

Pecm
II

ATLAS COPCO BRASIL LTDA
MACHINERY AND EQUIPMENT MAINTENANCE
SERVICES
4/14/2
014

4/24/2
017

534

534

Pecm
II

RAIZEN COMBUSTIVEIS S/A

MRO - DIESEL OIL BS10
4/2/20
14

5/31/20
15

26,955

9,022

ITAQUI

MABE

Construction of UTE-EPC
1/27/2
008

Indefini
te

144144

5,960

2,738
ITAQUI

Tecnometal

Supply of coal conveyor transportation system
7/24/2
009

7/31/20
14

130757

30,467

27,926
ITAQUI

Cargotec

Supply of ship unloading equipment
10/7/2
009

7/6/201
3

20161

-

20,161
ITAQUI

Carbomil

5/7/20
10

7/6/201
5

30000

26,798

26,798
ITAQUI

EMS Silvestrini

Maintenance, Industrial Cleaning and Industrial Support
5/1/20
12

6/30/2
014

16592

2,112

2,641
ITAQUI

Global Crossing

IT SERVICES
8/11/2
009

12/9/20
12

697

-

7
ITAQUI

Fortal Servios de Segurana

Armed security and surveillance services
7/25/2
012

3/24/2
014

5275

-

286
ITAQUI

Petroleo Sabba

Supply of diesel oil
7/1/20
12

8/31/20
14

19325

-

-
ITAQUI

Nova Aliana Locao de Veculos

Personnel Transportation Services
7/1/20
12

8/31/20
15

3843

503

1,255
ITAQUI
CONSULTORIA PLANEJAMENTO E
ESTUDOS AMBIENTAIS

Monitoring of water quality
3/1/20
13

5/31/20
14

904

79

248
ITAQUI

E ON GLOBAL COMMODITIES

Supply of coal
1/1/201
3

3/31/20
14

83700

-

52,316
Eneva S.A.
as of June 30, 2014

51 of 64
ITAQUI

SEMPRE VERDE SERV. E CONSTR. CIVIL

Technical management of agricultural hub

5/20/2
013

5/19/20
14

522

-

79
ITAQUI

RH Global

Specialist outsourced labor services
7/21/2
013

7/21/20
14

1115

99

520
ITAQUI

ECOSOFT

Maintenance and operation of the automatic air quality .
2/1/20
13

4/30/2
014

697

274

400
ITAQUI

OGMO

Collective agreement with trade unions of dockers.
10/1/2
013

9/30/2
015

750

467

750
ITAQUI

MONSERTEC

Procurement of services for the assembly of scaffolding.
12/5/2
013

12/4/20
15

6000

3,678

6,000
ITAQUI

E ON GLOBAL COMMODITIES

Supply of coal
1/1/201
4

1/31/20
15

114746

59,325

-
ITAQUI

Atlas Copco Brasil

Maintenance of Atlas Copco .
2/25/2
014

4/24/2
017

664

627

664
ITAQUI

Safety Consultoria Empresarial

Emergency safety services combating fires
1/1/201
4

6/30/2
014

480

320

-
ITAQUI

Avipam

Accommodation services, issuance of flights
3/18/2
014

4/17/20
15

290

277

-
ITAQUI

J DE D S LIMA

Medical service
1/1/201
4

6/30/2
014

420

140

-
ITAQUI

MAQMIX

Coal stacking services during receipt from ship
3/20/2
014

3/19/20
15

5562

5,001

-
ITAQUI

SEMPRE VERDE SERV. E CONSTR. CIVIL

Maintenance of green areas of UTE and surroundings
3/20/2
014

3/19/20
15

719

599

-
ITAQUI

PROVIDA BRASIL
Service for monitoring the aquatic biota during operation
of venture
4/7/20
14

2/18/2
015

1449

1,268

-
ITAQUI

EMAP
Port operation services for unloading and shipping
products
4/1/20
14

3/31/20
16

8300

7,133

-
ITAQUI

VIP VIGILANCIA

Armed security services on-site
1/22/2
014

2/21/20
17

5145

4,858

-
ITAQUI
CENTRAL DE GERENCIAMENTO
AMBIENTAL TITARA S/A
Disposal of ash generated at the UTE in the company's
landfill
4/17/2
014

4/16/20
22

90000

88,371

-
ITAQUI

ENVITEK SERVICOS AMBIENTAIS LTDA

Handling and transportation of ashes in the UTE's yard
3/24/2
014

3/23/2
022

82000

80,346

-
ITAQUI
CONTROL AMBIENTAL ENGENHARIA E
PLANEJAMENTO LTDA

Monitoring of groundwater.
4/16/2
014

4/15/20
15

759

632

-
UTE
Parnab
a I

GE International

GE Turbina e assistencia

5/30/2
011

1/18/20
14

397986

266,552

334,792
UTE
Parnab
a I

DURO Felguera

EPC and Turbine and technical assistance

5/30/2
011

10/31/2
013

586827

243,803

290,726
UTE
Parnab
a I

Guimar Engenharia

Engineering consultancy services for UTE Parnaba.

6/1/20
11

10/31/2
013

8335

-

1,940
UTE
Parnab
a I

Biota Projetos e Consultoria Ambiental

Biotic Monitoring

8/10/2
012

8/9/20
18

1081

443

1,014
UTE
Parnab
a I

CONSROD CONSTRUCOES
RODOVIARIAS LTDA ME

Construction of heliport and new cabin

11/5/2
012

6/4/201
3

2194

-

2,194
UTE
Parnab
a I

BANCO BANKPAR S.A

Air tickets, flights and vehicle rental

4/20/2
013

4/19/20
15

2718

2,718

2,718
UTE
Parnab
a I

BESSA & BARREIRA ADVOGADOS

Specialist legal advisory services for environmental
matters

1/3/20
11

12/31/2
013

560

532

532
UTE
Parnab
a I

GASMAR

Distribution system operation and maintenance

12/17/2
012

12/16/2
027

57838

15,110

2,946
UTE
Parnab
a I

ELETRONORTE

Maintenance and operation services - in connection bay

3/21/2
013

3/20/2
015

1881

483

981
UTE
Parnab
a I

EMS SILVESTRINI

Preventive, predictive and corrective industrial .

4/4/20
13

4/3/201
5

1664

677

1,931
UTE
Parnab
a I

M CARTAXO LACERDA

Procurement of specialist labor

6/3/20
13

6/2/201
5

723

321

952
UTE
Parnab
a I

PARNABA GS NATURAL

Natural gas acquisition

1/1/201
3

12/31/2
027

871917

513,937

106,968
UTE
Parnab
a I

BPMB PARNABA

Leasing of leased capacity by lessors to lessee

2/1/20
13

1/31/20
28

695234

389,495

279,059
UTE
Parnab
a I

RH GLOBAL CONSULTORIA E
ASSESSORIA LTDA

Specialist services: outsourced labor

7/24/2
013

7/23/2
014

1129

370

738
UTE
Parnab
a I

VIP VIGILANCIA

Unarmed security and property protection services

8/10/2
013

8/9/20
15

1431

878

2,234
UTE
Parnab
a I

INST. AYRTON SENNA

Project implementing management program for
correction of school flow .

6/18/2
013

1/30/2
017

2121

2,121

2,121
UTE
Parnab
a I

FACULDADES CATOLICAS

Research and development project, system for supporting
long-term planning.

3/18/2
014

4/17/20
17

2161

1,601

-
UTE
Parnab
a I

M CARTAXO LACERDA

Preparation, handling and supply of meals to employees

4/11/2
014

4/10/2
016

2574

2,420

-
UTE
Parnab
a I

MPX ENERGIA

long-term planning.

3/19/2
014

3/18/20
17

790

790

-
UTE
Parnab
a I

PSR SOLUES

long-term planning.

3/18/2
014

3/17/20
17

589

589

-
UTE
Parnaba II
INITEC Energia S.A.

EPC
8/15/2
011

2/2/201
4

913300

517,864

539,425
UTE
Parnaba II
Hidroinga Artesian Wells

WELL ENGINEERING
3/25/2
012

7/30/2
013

1578

-

21
UTE
Parnaba II
Brasilis Kaduna

Consultancy services
2/17/2
012

4/16/20
13

1000

352

352
UTE
Parnaba II
SYNERGIA
Consultancy Services for the Rural Resettlement Action
Plan, Santo Antonio do Lopes
5/7/20
12

7/6/201
3

1239

-

50
UTE
Parnaba II
Desga Ambiental Industria e Comrcio

Water intake and disposal system
8/1/20
12

10/31/2
013

20763

9,789

9,789
UTE
Parnaba II
Desga Ambiental Industria e Comrcio
Full and complete implementation of the water intake
and disposal system
8/1/20
12

5/31/20
14

42206

41,691

42,206
UTE
Parnaba II
General Electric Company

Acquisition of 2 (two) turbo generators
8/20/2
012

12/19/2
013

61424

9,920

9,920
Eneva S.A.
as of June 30, 2014

52 of 64

UTE
Parnaba II
Hidroinga Artesian Wells

Planning and construction of two deep cased wells

11/30/
2012

4/29/2
014

3605

104

509
UTE
Parnaba II
CONEL CONSTRUCOES E ENGENHARIA
LTDA

Construction of the well interconnection system
3/21/2
013

6/30/2
014

12162

101

3,736
UTE
Parnaba II
HATCH CONSULTORIA E
GERENCIAMENTO DE
EMPREENDIMENTOS LTDA

Development of the detailed project of the system .

3/18/2
013

7/17/20
14

2032

188

265
UTE
Parnaba II
ARM CONSULTORIA EM SEGURANCA
LTDA - PREVINE
Consultancy for occupational safety and the environment
.
5/21/2
013

5/20/2
014

4568

427

1,851
UTE
Parnaba II
RH GLOBAL

Procurement of specialist labor
7/24/2
013

7/23/2
014

1948

313

960
UTE
Parnaba II
LBB TRANSPORTE
Extension and completion of effluent disposal ducts in
the river alongside the plant
10/15/
2013

5/16/20
14

1841

-

1,300
UTE
Parnaba II
Guimar Engenharia

Engineering consultancy
9/1/20
13

2/29/2
016

3040

1,219

2,512
UTE
Parnaba II
STEAG Energy

Engineering consultancy
9/1/20
13

2/29/2
016

6504

2,121

4,748
UTE
Parnaba II
E M S Silvestrini

Preventive, predictive and corrective industrial .
1/1/201
4

4/3/201
5

836

648

739
UTE
Parnaba II
VIP Vigilncia

Unarmed security and property protection services
1/1/201
4

8/9/20
15

998

760

916
UTE
Parnaba II
Biota Projetos

Biotic monitoring of Parnaba
1/1/201
4

8/9/20
18

551

522

425
UTE
Parnaba II
M Cartaxo R Lacerda

Preparation, handling and supply of meals .
4/11/2
014

4/10/2
016

2114

1,967

-
UTE
Parnaba II
Bripaza Construes

Implementation of the final part of the industrial.
3/17/2
014

7/16/20
14

2433

1,529

-
UTE
Parnaba
III
WARTSILA BRASIL LTDA

EPC

3/28/2
013

4/30/2
014

8916

877

3,099
UTE
Parnaba
III
CMI CONSTRUES

ELECTRICAL CONNECTION

10/1/2
013

5/20/2
014

3250

759

3,250

4,843,228

2,516,699

1,896,510

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

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

Eneva S.A.
as of June 30, 2014

53 of 64

27 Insurance Coverage

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

As of June 30, 2014 and December 31, 2013, the main risks covered are:

Consolidated

June
2014
December
31
2013

Material damages 11,534,402 12,432,201
Civil liability and D&O 249,000 269,000

Eneva S.A.
as of June 30, 2014

54 of 64

28 Segment reporting

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

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

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

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

30/06/2014

Electricity
Generation

Supplies

Corporate
Other

Eliminations
and
adjustments

Total
consolidated

Balance sheet assets

6.018.243

1

4.736.904

10.451.510

2.826.729

8.400.491
Current

410.104

1

348.716

460.597

460.591

764.446
Cash and cash equivalents

75.755

1

12.011

87.779

87.773

87.773
Trade receivables

214.205

-

-

214.205

214.205

214.205
Securities

-

-

-

-

-

-
Inventory

66.729

-

-

66.729

66.729

66.729
CCC subsidies receivable

20.722

-

-

20.722

20.722

20.722
Gains on derivative transactions

-

-

-

-

-

-
Secured deposits

-

-

39

39

39

39
Held-for-trading assets

303.913

303.913
Other current assets

32.693

-

32.753

71.123

71.123

71.065
Non-current

5.608.139

-

4.388.188

9.990.913

2.366.138

7.636.046
Long-term
Related parties

21.602

-

1.164.283

1.185.885

601.524

771.773
CCC subsidy receivable

24.617

-

-

24.617

24.617

24.617
Deferred taxes

218.992

-

-

218.992

218.992

218.992
Gains on derivative transactions

-

-

8.602

8.602

8.602

8.602
Secured deposits

171.081

-

-

171.081

171.081

171.081
Other noncurrent assets

(15.981)

-

296.879

280.898

(277)

(217)
Investments

-

-

2.904.469

2.904.469

1.175

1.230.385
Property, plant and
equipment

4.992.974

-

11.332

5.004.912

-

5.004.609
Intangible assets

188.834

-

2.624

191.458

1.346.447

206.204
Deferred charges

6.022

-

-

-

(6.022)

-

Eneva S.A.
as of June 30, 2014

55 of 64

30/06/2014
Electricity
Generation Supplies

Corporate Other

Eliminations
and
adjustments
Total
consolidated
Balance Sheet - liabilities

6.023.921

1

4.736.906

10.761.446

11.189.053

8.400.491
Current

1.551.448

1

2.107.631

3.659.100

3.659.090

3.659.090
Loans and financing

1.052.038

-

2.091.183

3.143.222

3.143.222

3.143.222
Trade payables

345.855

1

4.860

350.717

350.716

350.716
Losses on derivative transactions

-

-

-

-

-

-
Related parties

-

-

-

(1)

(0)

(0)
Debentures

-

-

-

-

-

-
Other current liabilities

153.554

-

11.588

165.162

165.152

165.152
Non-current

2.393.263

-

218.227

2.612.478

2.297.362

2.217.206
Noncurrent liabilities
Loans and financing

1.775.822

-

172.495

1.948.317

1.948.317

1.948.317
Deferred taxes

11.694

-

-

11.694

11.694

11.694
Related parties

603.488

-

44.663

649.140

338.282

258.126
Debentures

-

-

-

-

-

-
Losses on derivative transactions

-

-

-

-

-

-
Other noncurrent liabilities

2.258

-

1.069

3.327

(931)

(931)
Noncontrolling shareholders

-

-

-

-

253.857

126.929
Shareholders' equity

2.079.211

0

2.411.048

4.489.868

4.978.744

2.397.267

30/06/2014
Electricity
generation

Supplies

Corporate
Other

Eliminations
and
adjustments

Total
consolidated
Statement of income
Net operating revenue

832.244

-

-

832.244

-

1.076.078
Cost of Goods and/or Services sold

(737.871)

-

-

(737.871)

(934.382)

(934.382)
Operating expenses

(12.991)

(0)

(41.613)

(54.616)

(56.750)

(56.750)
Other operating income

18.735

-

20.953

39.689

(20.234)

38.906
Equity in net income of subsidiaries

-

-

(83.628)

(83.628)

111

(40.751)
Financial income

(116.907)

(1)

(79.923)

(196.831)

-

(258.834)
Provision for current and deferred taxes

(5.633)

-

-

(5.633)

-

(5.276)
Noncontrolling interest

(3.201)

-

-

(3.202)

(3.202)
Net Income/Loss for the period

(25.625)

(1)

(184.211)

(209.848)

(1.011.255)

(184.211)

Eneva S.A.
as of June 30, 2014

56 of 64

December 31, 2013

Energy Eliminations Total

generation Supplies Corporate Other
and
adjustments consolidated

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

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

Cash and cash equivalents 166,960 457 110,156 10 277,583
Trade receivables 294,396 294,396
Securities
Inventory 78,376 78,376
CCC subsidies receivable 30,802 30,802
Gains on derivative
transactions 4,171 4,171
Secured deposits 38 38
Other current assets 26,416 19 26,878 62,477

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

Long-term
Related parties 24,418 1,249,669 (746,067 ) 528,019
CCC subsidy receivable 24,617 24,617
Deferred taxes 302,327 302,327
Gains on derivative
transactions
Secured deposits 118,606 118,606
Other noncurrent assets (15,175 ) 21 214,734 (206,528 ) (6,947 )

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

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

Intangible assets 195,653 2,727 213,381

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

December 31, 2013


Generation Supplies Corporate Other
and

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

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

Loans and financing 845,930 1,562,211 2,408,142
Trade payables 327,743 3,473 1 331,216
Losses on derivative
transactions
Related parties (1 )
Debentures 112 112
Other current liabilities 225,165 14,215 10 239,389

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

Noncurrent liabilities
Loans and financing 3,146,961 655,417 3,802,378
Deferred taxes 9,591 9,591
Related parties 995,147 22 34,489 501 (722,438 ) 307,720
Debentures 5,239 5,239
Losses on derivative
transactions
Other noncurrent liabilities 4,524 8,087 (1,060 ) 11,551

Noncontrolling shareholders 123,633 123,633

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

Eneva S.A.
as of June 30, 2014

57 of 64

December 31, 2013


Generation Supplies Corporate Other
and

Statement of income

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

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

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

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

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

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

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

Noncontrolling
interest 1,729 238 1,966

Net Income/Loss for the period (315,957 ) (554 ) (942,456 ) (212 ) 557 (942,455 )

Geographic data

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

North and North-east System

The North and North-east System consists of the plants of Itaqui Gerao de Energia S.A., Porto do Pecm
Gerao de Energia S.A., Pecm II Gerao de Energia S.A., Parnaba Gerao de Energia S.A., Parnaba II
Gerao de Energia S.A., Parnaba III Gerao de Energia S.A., Parnaba IV Gerao de Energia S.A., Parnaba
V Gerao de Energia S.A., Tau Gerao de Energia Ltda., Tau II Gerao de Energia Ltda. and Amapari
Energia S.A.

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

The pulverized coal-fired power plants Porto do Pecm Gerao de Energia S.A. and Pecm II Gerao de
Energia S.A. are located in the region of Porto do Pecm, Cear state, with installed capacity of 720 MW and 360
MW respectively.

Tau and Tau II are also located in the state of Cear, and are solar energy generation companies with an
environmental license for the joint generation of 5 MW each, where two 1-MW plants have already been built.

Amapari, an Independent Energy Producer (PIE) in the insulated system, is a diesel fuel thermal power plant
located in the municipality of Serra do Navio, Amap state, with an installed capacity of 23 MW.

Eneva S.A.
as of June 30, 2014

58 of 64

The Parnaba complex, a natural gas thermal power plant, is strategically located in block PN-T-68 of the
Parnaba Basin, in Maranho state. The venture has been licensed by the Maranho State environment
Department (SEMA) and has a forecast total capacity of 3,722 MW. The five Parnaba companies are located in
this complex.

South - Southeast System

The Seival Sul mine, located in the municipality of Candiota, Rio Grande do Sul state, has proven reserves of 152
million tons of coal. The thermoelectric ventures of Sul Gerao de Energia and UTE Seival are going to be built
in this area. These power plants will have an installed capacity of 727 MW and 600 MW respectively, and will
guarantee the supply of fuel for 30 years by integrating with the Seival Sul mine.

29 Subsequent Events

Partial Sale of Pecm II

The partial sale of Pecm II was completed on July 14, 2014. This sale is part of a set of measures implemented
by the Company to obtain additional funds and bolster its capital structure, which involves restructuring its
debt and the capital increase of up to R$ 1.5 billion, as stated in the Press Release.

As a result of the partial sale of Pecm II, ENEVA received approximately R$ 400 million for 50% of the shares
issued by Pecm II and the assignment of part of the credits related to an intercompany loan originally
awarded by ENEVA to Pecm II.

Following the completion of the partial sale of Pecm II, ENEVA and E.ON became shareholders, each with a
50% interest, of a specific purpose entity, which holds all of the shares issued by Pecm II.

Under the transaction, the parties awarded call options for the remaining 50% of Pecm II.

Capital increase

On August 01, 2014 Eneva S.A. ratified the increase in the Company's share capital of R$ 174,728,680.26, due
to the subscription and payment of 137,581,638 new common shares, under the capital increase approved on
May 09, 2014.

Amongst the shareholders sharing the Company's control, E.ON now holds approximately 42.9% of the share
capital, and Mr. Eike Batista now holds approximately 20.0%. The Shareholders' Agreement between E.ON
and Mr. Eike Batista is still in force and has not been affected by the capital increase.

Banco Citibank S.A. ("Citi") subscribed approximately R$ 42 million under the capital increase, funds used
entirely to pay early part of the principal of the debt taken out by the Company from the financial institution,
in accordance with the terms and conditions agreed by the parties.

The capital increase, less Citi's subscription, and the partial sale of the thermoelectric power plant Pecm II, as
described above, represent a capital contribution of approximately R$ 540.7 million. These events constitute
the first steps of ENEVA's stabilisation plan, as announced in the press release dated May 12, 2014.

Eneva S.A.
as of June 30, 2014

59 of 64

Proposal for Adaptation of contracts ParnabaII

On July 18, 2014 Eneva S.A, informed its shareholders and the market in general that ANEEL - Brazilian
Electricity Regulatory Agency postponed the deadline to August 18, 2014 to continue discussions with the
Company regarding the proposed adjustment the obligations of power supply by Parnaba Thermoelectric
Plant II ("Parnaba II" or "Plant"). The payment of any fee related to delay the commencement of commercial
operation Parnaba II remains suspended until the date given.

On August 5, 2014, continuing the Notice to the Market on June 18, 2014, informs its shareholders and the
market in general that on board meeting held today, ANEEL - Brazilian Electricity Regulatory Agency rejected
the proposal presented by the Company for adequacy of power supply obligations by TPP Parnaba II
("Parnaba II" or "Plant"). On that occasion, the board of Aneel provided the Parnaba II filing a revised
proposal with adjustments to the initial proposal presented by Eneva.

The terms and conditions proposed by Aneel comprise the following items:

The completion of the construction of Parnaba II until December, 2014;
The postponement of the start date of the Power Purchase Agreements (PPAs) in the Regulated Market to
July 1st, 2016, or the date when the plant is granted authorization for commercial operation, whichever
occurs first;
A penalty amounting to a total of R$ 310 million to be paid in instalments through the reduction in annual
fixed revenues over the term of plants PPAs; and
Renewal of execution guarantees in the amount of R$ 60 million until July, 2016.

Additionally, the company should commit to close the cycle of the four gas turbines of the Parnaba I thermal
power plant in up to five years, subject to certain conditions precedent, including the sale of energy in the
regulated market and the ability to secure long-term financing for the project.

The company considers that the parameters indicated by Aneel on the board meeting today are close to the
minimum conditions needed to maintain the economic feasibility of the Parnaba II project. The agency
rejected the previous proposal submitted by ENEVA and provided the company the possibility to present an
adjusted proposal.Ratification of a final agreement with Aneel will also consider a satisfactory development of
ongoing commercial discussions with Parnaba Gs Natural (PGN) in the next few days.

ENEVA and PGN are working together in order to optimize the natural gas production considering the current
high thermoelectric dispatch scenario in Brazil, including, among other measures, managing existing wells,
drilling additional ones and accelerating production at other discovered fields, which approved for commercial
production by ANP Brazils National Oil, Gas and Biofuels Regulatory Agency.

Additionally, the Company informs that the PGN filed a lawsuit against the Parnaba I Power Generation SA ("I
Parnaba") requiring the submission of bank guarantees to cover their financial obligations under the Gas
Supply Agreement and the Lease Agreement Drive Capacity Gas Treatment. a preliminary injunction was
denied by a lower court judge on July 1, 2014 the PGN then appealed to the Court of Rio de Janeiro, which also
denied the request for an injunction on 16 July 2014 Eneva and Parnaba I are discussing alternatives to the
commercial PGN outside the court.
* * *
Eneva S.A.
as of June 30, 2014

60 of 64

Board of Directors

Jorgen Kildahl (Chairman)
Keith Plowman
Stein Dale
Adriano Carvalhdo Castello Branco Gonalves
Ronnie Vaz Moreira
Luiz do Amaral de Frana Pereira
Ricardo Luiz de Souza Ramos
Luiz Fernando Vendramini Fleury

Executive Board

Fbio H. Bicudo (CEO and Investor Relations Officer)
Frank Possmeier (Officer)

Accountant

Ana Paula Vergetti Diniz
CRC 087040/O-9

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