(A free translation of the original in Portuguese)
Centrais Elétricas de
Santa Catarina S.A.
Quarterly information (ITR) at
June 30, 2015
and report on review of
quarterly information
CELESC615MS.DOCX
Deloitte Touche Tohmatsu
Auditores Independentes
Rua Dona Francisca, 260
15º andar
Joinville – SC – 89201-250
Brasil
Tel: + 55 (47) 3025-5155
(A free translation of the original in Portuguese)
Fax: + 55 (47) 3025-5155
www.deloitte.com.br
REPORT ON REVIEW OF QUARTERLY INFORMATION
To the Board of Directors and Stockholders
Centrais Elétricas de Santa Catarina S.A.
Florianópolis - SC
Introduction
We have reviewed the accompanying parent company and consolidated interim accounting information of
Centrais Elétricas de Santa Catarina S.A. ("Company"), included in the Quarterly Information Form (ITR)
for the quarter ended June 30, 2015, comprising the balance sheet as at that date and the statements of
operations and comprehensive income (loss) for the quarter and six-month period then ended, and the
statements of changes in equity and cash flows for the six-month period then ended, and the explanatory
notes.
Management is responsible for the preparation of the parent company and consolidated interim
accounting information in accordance with the accounting standard CPC 21 (R1), "Interim Financial
Reporting", issued by the Brazilian Accounting Pronouncements Committee (CPC), and the 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.
2
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of
member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see
www.deloitte.com/about for a detailed description of DTTL and its member firms.
© Deloitte Touche Tohmatsu. All rights reserved.
CELESC615MS.DOCX
Deloitte Touche Tohmatsu
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
parent company and 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 (R1) 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 as a going concern
Without qualifying our opinion, we draw attention to Note 1 to this quarterly information, which describes
that the Company held the concession to carry out its distributing activities for 16 years, that is, up to
July 7, 2015. The Company filed a request for extension of this concession period and, on October 15,
2012, ratified this request. In January 2014, through Circular Letter 1/2014, the National Electric Energy
Agency (ANEEL) informed the Company that it is analyzing the extension request, and that the
Concession Grantor is the ultimate responsible for the approval. This situation raises substantial doubts
about the ability of the Company to continue as a going concern, considering that the extension of the
concession contract depends on the final decision of the Concession Grantor. The information included in
this quarterly information was prepared based on the assumption that the Company will continue as a
going concern, which considers the realization of assets and payment of liabilities and commitments
during the normal course of business.
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, 2015. These statements are the responsibility of the Company's management,
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 interim accounting information taken as a whole.
Joinville, August 13, 2015
DELOITTE TOUCHE TOHMATSU
Auditores Independentes
CRC nº 2 SP-011.609/O-8 F-SC
3
CELESC615MS.DOCX
Fernando de Souza Leite
Accountant
CRC nº 1 PR-050.422/O-3
(A free translation of the original in Portuguese)
Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Contents
Information
General information
1
Address
2
Securities
3
Auditor
4
Share registrar
5
Investor relations officer or equivalent
6
Stockholders' department
7
CELESC615MS.DOCX
(A free translation of the original in Portuguese)
Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
1. General information
Corporate name
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Date of adoption of the
corporate name
Type
Publicly-held corporation
Previous corporate name
Date of constitution
12/9/1955
National Corporate Taxpayers'
Registry (CNPJ)
83.878.892/0001-55
Brazilian Securities Commission
(CVM) code
246-1
CVM registration date
3/26/1973
CVM registration status
Active
Date of effectiveness of status
3/26/1973
Home country
Brazil
Country in which the securities
are held in custody
Brazil
Other countries in which the
securities can be
traded
Country
United States
Activity sector
Electric Energy Sector
Description of activities
Holding Company in the Electric Energy Sector
Issuer category
Category A
Date of registration in the current
category
1/1/2010
Issuer status
Operating
Date of effectiveness of status
3/26/1973
Type of ownership control
State-owned Holding Company
Date of constitution
9/21/1994
Date of last change in
ownership control
Date of last change in
the fiscal year
Month/day of the end of
the fiscal year
12/31
Issuer's website on the Internet
www.celesc.com.br
Newspapers in which the issuer
discloses its information
Name of newspapers in which the issuer discloses its information
Valor Econômico
State
SP
Diário Catarinense
SC
Diário Oficial do Estado (State Official Gazette)
SC
Celesc website
BR
CELESC615MS.DOCX
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(A free translation of the original in Portuguese)
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Version: 1
2. Address
Mail address
Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP 88034-900,
Telephone: (5548) 32315100, Fax: (5548) 32316229, E-mail: ri@celesc.com.br
Headquarters' address
Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil, CEP 88034-900,
Telephone: (5548) 32315000, Fax: (5548) 32316039, E-mail: ri@celesc.com.br
CELESC615MS.DOCX
2 of 7
(A free translation of the original in Portuguese)
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Version: 1
3. Securities
Shares
Trading
Market
CELESC615MS.DOCX
Managing entity
Beginning
Listing
End
Trading segment
Beginning
End
3 of 7
(A free translation of the original in Portuguese)
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Version: 1
4. Auditor
Does the Issuer have an auditor?
YES
CVM code
385-9
Type of auditor
Brazilian firm
Name/Corporate name
Deloitte Touche Tohmatsu Auditores Independentes
Individual Taxpayers' Registration
Number (CPF)/
National Corporate Taxpayers'
Registry (CNPJ)
49.928.567/0001-11
Period of services
4/3/2014
Partner responsible
Period of services
Fernando Souza Leite
CELESC615MS.DOCX
4/3/2014 to 4/2/2015
CPF
004.400.929-14
4 of 7
(A free translation of the original in Portuguese)
Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
5. Share registrar
Does the Company have a
service provider?
YES
Corporate name
Itaú Corretora de Valores S.A.
CNPJ
61.194.353/0001-64
Period of services
12/5/2005
Service address
CELESC615MS.DOCX
Avenida Engo Armando de Arruda Pereira, 707, Jabaquara, São Paulo, SP, Brasil,
CEP 04344-902, Telephone:(5548) 50291925, Fax:(5548) 50291917,
E-mail:marcio.conde-souza@itau.com.br
5 of 7
(A free translation of the original in Portuguese)
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6. Investor relations officer or equivalent
Name
José Carlos Oneda
Investor Relations Officer
CPF/CNPJ
084.485.159-00
Mail address
Rua Emiliano Ramos no. 576, Apto. 403, Centro, Lages, SC, Brasil,
CEP 88502-215, Telephone (48) 32316011, Fax (48) 32316229,
E-mail ri@celesc.com.br
Date when the person
assumed the position
7/1/2013
Date when the person left
the position
CELESC615MS.DOCX
6 of 7
(A free translation of the original in Portuguese)
Registration Form - 2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
7. Stockholders' department
CONTACT
Jose Lemos de Carvalho Junior
Date when the person
assumed the position
7/31/2013
Date when the person left
the position
Mail address
CELESC615MS.DOCX
Avenida Itamarati, 160, Itacorubi, Florianópolis, SC, Brasil,
CEP 88034-900, Telephone (5548) 32315100, Fax (5548) 32316039,
E-mail joselcj@celesc.com.br
7 of 7
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Contents
Company information
Capital composition
1
Parent company quarterly information
Balance sheet - assets
2
Balance sheet - liabilities and equity
3
Statement of operations
4
Statement of comprehensive income
5
Statement of cash flows - indirect method
6
Statement of changes in equity
1/1/2015 to 6/30/2015
7
1/1/2014 to 6/30/2014
8
Statement of value added
9
Consolidated quarterly information
Balance sheet - assets
10
Balance sheet - liabilities and equity
11
Statement of operations
12
Statement of comprehensive income (loss)
13
Statement of cash flows - indirect method
14
Statement of changes in equity
1/1/2015 to 6/30/2015
15
1/1/2014 to 6/30/2014
16
Statement of value added
17
Comments on company performance
18
Notes to the quarterly information
25
Other information considered relevant by the Company
88
Reports
Report on review of quarterly information - without exceptions
92
Officers' statement on the quarterly information
94
Officers' statement on the report on review of quarterly information
95
CELESC615MS.DOCX
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Company information / Capital composition
Number of shares
(In thousands)
Current quarter
6/30/2015
Paid-up capital
Common shares
15,527
Preferred shares
Total
Treasury shares
23,044
38,571
Common shares
0
Preferred shares
Total
0
0
Page 1 of 95
(A free translation of the original in Portuguese)
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Version: 1
Parent company quarterly information/balance sheet - assets
(R$ thousand)
1 - Code
1
1.01
1.01.01
1.01.06
1.01.06.01
1.01.08
1.01.08.03
1.01.08.03.01
1.01.08.03.03
1.02
1.02.01
1.02.01.01
1.02.01.01.01
1.02.01.01.02
1.02.01.08
1.02.01.08.03
1.02.01.09
1.02.01.09.03
1.02.02
1.02.02.01
1.02.02.01.01
1.02.02.01.02
1.02.02.01.04
1.02.03
1.02.03.01
1.02.04
1.02.04.01
1.02.04.01.01
2 - Description
Total assets
Current assets
Cash and cash equivalents
Taxes recoverable
Current taxes recoverable
Other current assets
Other
Dividends receivable
Other receivables
Non-current assets
Long-term receivables
Financial investments measured at fair value
Trading securities
Available-for-sale securities
Receivables from related parties
Receivables from controlling stockholders
Other non-current assets
Judicial deposits
Investments
Equity investments
Investments in associates
Investments in subsidiaries
Other equity investments
Property, plant and equipment
Property, plant and equipment in use
Intangible assets
Intangible assets
Concession contract
Current quarter
6/30/2015
2,488,939
106,890
41,703
2,832
2,832
62,355
62,355
62,307
48
2,382,049
158,307
137,478
137,261
217
4,262
4,262
16,567
16,567
2,215,979
2,215,979
17,867
2,067,536
130,576
54
54
7,709
7,709
7,709
Prior year
12/31/2014
2,477,806
150,488
16,916
4,102
4,102
129,470
129,470
129,451
19
2,327,318
158,380
137,478
137,261
217
4,262
4,262
16,640
16,640
2,160,922
2,160,922
26,689
2,002,698
131,535
56
56
7,960
7,960
7,960
Page 2 of 95
(A free translation of the original in Portuguese)
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Version: 1
Parent company quarterly information/balance sheet - liabilities and equity
(R$ thousand)
1 - Code
2
2.01
2.01.01
2.01.01.01
2.01.01.01.01
2.01.02
2.01.02.01
2.01.03
2.01.03.01
2.01.03.01.02
2.01.03.01.03
2.01.03.03
2.01.05
2.01.05.02
2.01.05.02.01
2.01.05.02.04
2.02
2.02.04
2.02.04.01
2.02.04.01.01
2.02.04.02
2.02.04.02.04
2.03
2.03.01
2.03.02
2.03.02.06
2.03.04
2.03.04.01
2.03.04.05
2.03.04.10
2.03.05
2.03.06
2 - Description
Total liabilities
Current liabilities
Social and labor obligations
Social obligations
Social charges
Trade payables
Domestic trade payables
Tax obligations
Federal tax obligations
Other federal tax obligations
Social Integration Program (PIS) and Social Contribution
on Revenues (COFINS)
Municipal tax obligations
Other obligations
Other
Dividends and interest on capital payable
Other current liabilities
Non-current liabilities
Provisions
Tax, social security, labor and civil provisions
Tax provisions
Other provisions
Regulatory provisions
Equity
Paid-up share capital
Capital reserves
Advance for future capital increase
Revenue reserves
Legal reserve
Profit retention reserve
Dividends at the Disposal of the General Meeting of Stockholders
Retained earnings
Carrying value adjustments
Current quarter
6/30/2015
2,488,939
76,995
1,114
1,114
1,114
1,995
1,995
205
195
83
Prior year
12/31/2014
2,477,806
126,458
669
669
669
1,928
1,928
1,426
1,416
80
112
10
73,681
73,681
73,472
209
6,437
6,437
1,263
1,263
5,174
5,174
2,405,507
1,340,000
316
316
999,375
138,085
861,290
0
91,576
-25,760
1,336
10
122,435
122,435
122,219
216
7,890
7,890
1,263
1,263
6,627
6,627
2,343,458
1,017,700
316
316
1,345,927
138,085
1,183,472
24,370
0
-20,485
Page 3 of 95
(A free translation of the original in Portuguese)
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Version: 1
Parent company quarterly information/statement of operations
(R$ thousand)
1 - Code
3.04
3.04.02
3.04.04
3.04.05
3.04.06
3.05
3.06
3.06.01
3.06.02
3.07
3.09
3.11
3.99
3.99.01
3.99.01.01
3.99.01.02
3.99.02
3.99.02.01
3.99.02.02
2 - Description
Operating income/expenses
General and administrative expenses
Other operating income
Other operating income/expenses
Equity in the results of investees
Profit/loss before finance result and taxes
Finance result
Finance income
Finance costs
Profit/loss before taxation
Profit/loss from continuing operations
Profit/loss for the period
Earnings/loss per share (reais/share)
Basic earnings/loss per share
Common shares
Preferred shares
Diluted earnings/loss per share
Common shares
Preferred shares
Current quarter
4/1/2015 to
6/30/2015
29,464
-9,636
0
1,453
37,647
29,464
1,080
1,581
-501
30,544
30,544
30,544
Accumulated current year
1/1/2015 to
6/30/2015
85,343
-16,743
0
1,453
100,633
85,343
958
1,968
-1,010
86,301
86,301
86,301
Same quarter of
prior year
4/1/2014 to
6/30/2014
64,014
-7,228
0
0
71,242
64,014
609
1,159
-550
64,623
64,623
64,623
Accumulated prior year
1/1/2014 to
6/30/2014
-9,363
-13,333
18
0
3,952
-9,363
1,171
2,219
-1,048
-8,192
-8,192
-8,192
0.74720
0.82200
2.11130
2.32240
1.58090
1.73900
-0.20040
-0.22050
0.74720
0.82200
2.11130
2.32240
1.58090
1.73900
-0.20040
-0.22050
Page 4 of 95
(A free translation of the original in Portuguese)
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Version: 1
Parent company quarterly information/statement of comprehensive income
(R$ thousand)
1 - Code
4.01
4.03
2 - Description
Profit/loss for the period
Comprehensive income/loss for the period
Current quarter
4/1/2015 to
6/30/2015
30,544
30,544
Accumulated current year
1/1/2015 to
6/30/2015
86,301
86,301
Same quarter of
prior year
4/1/2014 to
6/30/2014
64,623
64,623
Accumulated prior year
1/1/2014 to
6/30/2014
-8,192
-8,192
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Version: 1
Parent company quarterly information/statement of cash flows - indirect method
(R$ thousand)
1 - Code
6.01
6.01.01
6.01.01.01
6.01.01.02
6.01.01.03
6.01.01.05
6.01.01.07
6.01.02
6.01.02.02
6.01.02.03
6.01.02.04
6.01.02.05
6.01.02.06
6.01.02.09
6.01.02.10
6.02
6.02.04
6.03
6.03.01
6.03.02
6.05
6.05.01
6.05.02
2 - Description
Net cash used in operating activities
Cash used in operations
Profit/loss before taxation
Depreciation and amortization
Equity in the results of investees
Interest and monetary restatement expenses
Contingencies
Changes in assets and liabilities
Other assets
Taxes recoverable
Trade payables
Salaries and social charges
Taxes payable
Judicial deposits
Other liabilities
Net cash from investing activities
Dividends received
Net cash used in financing activities
Related parties
Dividends paid
Increase/decrease in cash and cash equivalents
Opening balance of cash and cash equivalents
Closing balance of cash and cash equivalents
Accumulated current year
1/1/2015 to
6/30/2015
-14,199
-14,797
86,301
988
-100,633
0
-1,453
598
-29
1,270
67
445
-1,221
73
-7
111,985
111,985
-72,999
0
-72,999
24,787
16,916
41,703
Accumulated prior year
1/1/2014 to
6/30/2014
-10,485
-11,524
-8,192
988
-3,952
-368
0
1,039
1,965
4,450
442
74
-4,626
-1,258
-8
55,671
55,671
-41,241
11,297
-52,538
3,945
30,006
33,951
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Version: 1
Parent company quarterly information/statement of changes in equity - 1/1/2015 to 6/30/2015
(R$ thousand)
1 - Code
5.01
5.03
5.04
5.04.06
5.04.08
5.05
5.05.01
5.05.03
5.05.03.02
5.06
5.06.04
5.07
2 - Description
Opening balances
Adjusted opening balances
Capital transactions with stockholders
Dividends
Reversal of prescribed dividends
Total comprehensive income/loss
Profit for the period
Reclassifications to the result
Realization of deemed cost
Internal changes in equity
Share capital increase
Closing balances
Paid-up
share capital
1,017,700
1,017,700
0
0
0
0
0
0
0
322,300
322,300
1,340,000
Capital reserves,
stock options and
treasury stock
316
316
0
0
0
0
0
0
0
0
0
316
Revenue
reserves
1,345,927
1,345,927
-24,252
-24,370
118
0
0
0
0
-322,300
-322,300
999,375
Retained
earnings/
accumulated
deficit
0
0
0
0
0
91,576
86,301
5,275
5,275
0
0
91,576
Other
comprehensive
income/loss
-20,485
-20,485
0
0
0
-5,275
0
-5,275
-5,275
0
0
-25,760
Equity
2,343,458
2,343,458
-24,252
-24,370
118
86,301
86,301
0
0
0
0
2,405,507
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Version: 1
Parent company quarterly information/statement of changes in equity - 1/1/2014 to 6/30/2014
(R$ thousand)
1 - Code
5.01
5.03
5.04
5.04.06
5.05
5.05.01
5.05.03
5.05.03.02
5.07
2 - Description
Opening balances
Adjusted opening balances
Capital transactions with stockholders
Dividends
Total comprehensive income/loss
Loss for the period
Reclassifications to the result
Realization of deemed cost
Closing balances
Paid-up
share capital
1,017,700
1,017,700
0
0
0
0
0
0
1,017,700
Capital reserves,
stock options and
treasury stock
316
316
0
0
0
0
0
0
316
Revenue
reserves
929,133
929,133
-6,370
-6,370
0
0
0
0
922,763
Retained
earnings/
accumulated
deficit
0
0
0
0
7,786
-8,192
15,978
15,978
7,786
Other
comprehensive
income/loss
190,313
190,313
0
0
-15,978
0
-15,978
-15,978
174,335
Equity
2,137,462
2,137,462
-6,370
-6,370
-8,192
-8,192
0
0
2,122,900
Page 8 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Parent company financial statements/statement of value added
(R$ thousand)
1 - Code
7.02
7.02.02
7.02.03
7.03
7.04
7.04.01
7.05
7.06
7.06.01
7.06.02
7.07
7.08
7.08.01
7.08.01.01
7.08.02
7.08.02.01
7.08.03
7.08.03.01
7.08.03.02
7.08.04
7.08.04.03
2 - Description
Inputs acquired from third-parties
Materials, electricity, outsourced services and other
Impairment/recovery of assets
Gross value added
Retentions
Depreciation, amortization and depletion
Net value added generated
Value added received through transfer
Equity in the results of investees
Finance income
Total value added to distribute
Distribution of value added
Personnel
Direct remuneration
Taxes and contributions
Federal taxes
Remuneration of third-party capital
Interest
Rentals
Remuneration of own capital
Retained earnings/accumulated deficit for the period
Accumulated current year
1/1/2015 to
6/30/2015
-556
-2,009
1,453
-556
-988
-988
-1,544
102,601
100,633
1,968
101,057
101,057
14,500
14,500
222
222
34
24
10
86,301
86,301
Accumulated prior year
1/1/2014 to
6/30/2014
-1,404
-1,422
18
-1,404
-988
-988
-2,392
6,171
3,952
2,219
3,779
3,779
11,631
0
278
0
62
62
0
-8,192
-8,192
Page 9 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated quarterly information/balance sheet - assets
(R$ thousand)
1 - Code
1
1.01
1.01.01
1.01.03
1.01.03.01
1.01.03.01.01
1.01.03.01.02
1.01.03.02
1.01.04
1.01.06
1.01.06.01
1.01.08
1.01.08.03
1.01.08.03.02
1.01.08.03.03
1.01.08.03.04
1.01.08.03.05
1.02
1.02.01
1.02.01.01
1.02.01.01.01
1.02.01.01.02
1.02.01.03
1.02.01.03.01
1.02.01.03.02
1.02.01.06
1.02.01.06.01
1.02.01.08
1.02.01.08.03
1.02.01.08.04
1.02.01.09
1.02.01.09.03
1.02.01.09.04
1.02.02
1.02.02.01
1.02.02.01.01
1.02.02.01.04
1.02.03
1.02.04
1.02.04.01
1.02.04.01.01
1.02.04.01.02
2 - Description
Total assets
Current assets
Cash and cash equivalents
Accounts receivable
Trade receivables
Trade receivables
Provision for impairment of trade receivables
Other receivables
Inventories
Taxes recoverable
Current taxes recoverable
Other current assets
Other
Indemnifiable assets - concession
Dividends receivable
Other receivables
Financial asset - Portion A
Non-current assets
Long-term receivables
Financial investments measured at fair value
Trading securities
Available-for-sale securities
Trade receivables
Trade receivable
Other receivables
Deferred taxes
Deferred income tax and social contribution
Receivables from related parties
Receivables from controlling stockholders
Receivables from other related parties
Other non-current assets
Taxes recoverable
Judicial deposits
Investments
Equity investments
Investments in associates
Other equity investments
Property, plant and equipment
Intangible assets
Intangible assets
Concession contract
Other intangible assets
Current quarter
6/30/2015
6,888,398
5,878,757
409,322
1,342,150
1,218,311
1,538,247
-319,936
123,839
7,805
143,784
143,784
3,975,696
3,975,696
3,087,772
7,642
477,532
402,750
1,009,641
594,730
137,478
137,261
217
20,513
18,031
2,482
252,846
252,846
4,750
4,262
488
179,143
24,590
154,553
183,605
183,605
53,029
130,576
211,229
20,077
20,077
3,647
16,430
Prior year
12/31/2014
6,171,127
5,197,493
449,789
1,016,683
892,317
1,252,251
-359,934
124,366
8,710
53,876
53,876
3,668,435
3,668,435
2,890,451
14,212
313,206
450,566
973,634
443,626
137,478
137,261
217
8,401
6,398
2,003
130,068
130,068
4,262
4,262
0
163,417
18,732
144,685
195,621
195,621
64,086
131,535
232,350
102,037
102,037
84,273
17,764
Page 10 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated quarterly information/balance sheet - liabilities and equity
(R$ thousand)
1 - Code
2
2.01
2.01.01
2.01.01.01
2.01.02
2.01.02.01
2.01.03
2.01.03.01
2.01.03.01.01
2.01.03.01.02
2.01.03.01.03
2.01.03.02
2.01.03.03
2.01.04
2.01.04.01
2.01.04.01.01
2.01.04.02
2.01.05
2.01.05.01
2.01.05.01.04
2.01.05.02
2.01.05.02.01
2.01.05.02.04
2.01.05.02.05
2.01.06
2.01.06.01
2.01.06.01.03
2.02
2.02.01
2.02.01.01
2.02.01.01.01
2.02.01.02
2.02.02
2.02.02.02
2.02.02.02.04
2.02.02.02.05
2.02.03
2.02.03.01
2.02.04
2.02.04.01
2.02.04.01.01
2.02.04.01.02
2.02.04.01.03
2.02.04.01.04
2.02.04.02
2.02.04.02.04
2.03
2.03.01
2.03.02
2.03.02.06
2.03.04
2.03.04.01
2.03.04.05
2.03.04.10
2.03.05
2.03.06
2 - Description
Total liabilities
Current liabilities
Social and labor obligations
Social obligations
Trade payables
Domestic trade payables
Tax obligations
Federal tax obligations
Income tax and social contribution payable
PIS/COFINS
Other
State tax obligations
Municipal tax obligations
Borrowings
Borrowings
In local currency
Debentures
Other obligations
Liabilities - related parties
Debts with other related parties
Other
Dividends and interest on capital payable
Regulatory charges
Other current liabilities
Provisions
Tax, social security, labor and civil provisions
Provisions for employee benefits
Non-current liabilities
Borrowings
Borrowings
In local currency
Debentures
Other obligations
Other
Regulatory charges
Other non-current liabilities
Deferred taxes
Deferred income tax and social contribution
Provisions
Tax, social security, labor and civil provisions
Tax provisions
Social security and labor provisions
Provisions for employee benefits
Civil provisions
Other provisions
Regulatory provisions
Consolidated equity
Paid-up share capital
Capital reserves
Advance for future capital increase
Revenue reserves
Legal reserve
Profit retention reserves
Dividends at the disposal of the General Meeting of Stockholders
Retained earnings
Carrying value adjustments
Current quarter
6/30/2015
6,888,398
2,258,668
123,185
123,185
684,356
684,356
335,059
192,528
146,308
39,870
6,350
142,406
125
180,659
175,860
175,860
4,799
760,755
10,318
10,318
750,437
73,472
637,472
39,493
174,654
174,654
174,654
2,224,223
717,428
418,478
418,478
298,950
219,543
219,543
217,067
2,476
14,236
14,236
1,273,016
1,197,326
26,855
36,891
986,624
146,956
75,690
75,690
2,405,507
1,340,000
316
316
999,375
138,085
861,290
0
91,576
-25,760
Prior year
12/31/2014
6,171,127
1,763,222
120,371
120,371
689,343
689,343
169,288
65,570
33,374
25,374
6,822
101,718
2,000
326,706
322,586
322,586
4,120
286,661
15,106
15,106
271,555
122,219
113,208
36,128
170,853
170,853
170,853
2,064,447
532,647
233,879
233,879
298,768
187,580
187,580
185,105
2,475
15,412
15,412
1,328,808
1,258,558
29,392
64,738
1,032,291
132,137
70,250
70,250
2,343,458
1,017,700
316
316
1,345,927
138,085
1,183,472
24,370
0
-20,485
Page 11 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated quarterly information/statement of operations
(R$ thousand)
1 - Code
3.01
3.02
3.03
3.04
3.04.01
3.04.02
3.04.05
3.04.06
3.05
3.06
3.06.01
3.06.02
3.07
3.08
3.08.01
3.08.02
3.09
3.11
3.11.01
3.99
3.99.01
3.99.01.01
3.99.01.02
3.99.02
3.99.02.01
3.99.02.02
2 - Description
Revenue from sales of goods and/or services
Cost of goods and/or services sold
Gross profit
Operating expenses
Selling expenses
General and administrative expenses
Other operating income/expenses
Equity in the results of investees
Profit/loss before finance result and taxes
Finance result
Finance income
Finance costs
Profit before taxation
Income tax and social contribution
Current
Deferred
Profit/loss from continuing operations
Consolidated profit/loss for the period
Attributable to the owners of the parent
Earnings/loss per share (reais/share)
Basic earnings/loss per share
Common shares
Preferred shares
Diluted earnings/loss per share
Common shares
Preferred shares
Current quarter
4/1/2015 to
6/30/2015
1,648,205
-1,544,721
103,484
-137,512
-42,478
-88,633
-14,486
8,085
-34,028
69,006
116,906
-47,900
34,978
-4,434
-89,723
85,289
30,544
30,544
30,544
Accumulated current year
1/1/2015 to
6/30/2015
3,462,952
-3,225,848
237,104
-230,060
-87,696
-181,562
26,839
12,359
7,044
101,023
211,131
-110,108
108,067
-21,766
-145,719
123,953
86,301
86,301
86,301
Same quarter of
prior year
4/1/2014 to
6/30/2014
1,364,617
-1,151,879
212,738
-129,635
-36,404
-74,220
-26,555
7,544
83,103
-4,547
55,195
-59,742
78,556
-13,933
-12,733
-1,200
64,623
64,623
64,623
Accumulated prior year
1/1/2014 to
6/30/2014
2,665,011
-2,399,019
265,992
-259,156
-74,638
-154,444
-45,735
15,661
6,836
41,449
126,224
-84,775
48,285
-56,477
-30,846
-25,631
-8,192
-8,192
-8,192
0.74720
0.8220
2.11130
2.32240
1.58090
1.73900
-0.20040
-0.22050
0.74720
0.82200
2.11130
2.32240
1.58090
1.73900
-0.20040
-0.22050
Page 12 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated quarterly information/statement of comprehensive income (loss)
(R$ thousand)
1 - Code
4.01
4.03
4.03.01
2 - Description
Consolidated profit/loss for the period
Consolidated comprehensive income/loss for the period
Attributable to the owners of the parent
Current quarter
4/1/2015 to
6/30/2015
30,544
30,544
30,544
Accumulated current year
1/1/2015 to
6/30/2015
86,301
86,301
86,301
Same quarter of
prior year
4/1/2014 to
6/30/2014
64,623
64,623
64,623
Accumulated prior year
1/1/2014 to
6/30/2014
-8,192
-8,192
-8,192
Page 13 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated quarterly information/statement of cash flows - indirect method
(R$ thousand)
1 - Code
6.01
6.01.01
6.01.01.01
6.01.01.02
6.01.01.04
6.01.01.06
6.01.01.08
6.01.01.09
6.01.01.10
6.01.01.11
6.01.01.13
6.01.01.14
6.01.01.16
6.01.01.17
6.01.01.18
6.01.01.19
6.01.01.20
6.01.02
6.01.02.02
6.01.02.03
6.01.02.04
6.01.02.05
6.01.02.06
6.01.02.07
6.01.02.08
6.01.02.09
6.01.02.10
6.01.02.12
6.01.02.13
6.01.02.16
6.01.03
6.02
6.02.01
6.02.05
6.02.06
6.02.08
6.02.09
6.03
6.03.02
6.03.03
6.03.04
6.03.05
6.05
6.05.01
6.05.02
2 - Description
Net cash provided by/used in operating activities
Cash from operations
Profit before taxation
Depreciation and amortization
Equity in the results of investees
Expenses on interest and monetary restatements
Income tax and social contribution paid
Provision for impairment of trade receivables
Interest paid
Contingencies
Disposal of assets
Losses on equity investments
Reversal of provision for losses on property, plant and equipment
Financial asset adjustment - VNR
Realization of provision for losses
Actuarial expenses
Write-off of indemnifiable assets
Changes in assets and liabilities
Accounts receivable
Other assets
Judicial deposits
Trade payables
Salaries and social charges
Taxes payable
Regulatory charges
Taxes recoverable
Other changes in assets and liabilities
Inventories
Actuarial liabilities
Regulatory assets
Other
Net cash used in investing activities
Purchases of property, plant and equipment and additions to intangible assets
Dividends received
Payment of related-party capital
Capital increase
Capital decrease - investees
Net cash provided by/used in financing activities
Related parties
Repayment of borrowings
New borrowings
Dividends paid
Decrease in cash and cash equivalents
Opening balance of cash and cash equivalents
Closing balance of cash and cash equivalents
Accumulated current year
1/1/2015 to
6/30/2015
103,662
72,235
108,067
118,169
-12,359
54,254
-124,688
13,495
-53,022
-10,125
6
-5
203
-90,854
-7,347
52,895
23,546
32,852
-350,595
-164,806
-9,868
-4,987
2,814
144,740
557,357
-95,766
0
905
-94,758
47,816
-1,425
-108,632
-138,359
28,363
0
-6,436
7,800
-35,497
0
-365,438
402,940
-72,999
-40,467
449,789
409,322
Accumulated prior year
1/1/2014 to
6/30/2014
-162,527
221,254
48,285
109,158
-15,661
30,066
-23,750
98
-31,132
20,815
1,401
-2,914
0
-31,886
-14,086
37,431
93,429
-383,781
16,901
-321,954
-1,537
28,089
2,492
-41,341
14,270
23,886
-3,052
2,249
-103,784
0
0
-102,159
-112,981
14,438
-3,616
0
0
235,498
11,297
-201,894
478,633
-52,538
-29,188
664,506
635,318
Page 14 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated financial statements/statement of changes in equity - 1/1/2015 to 6/30/2015
(R$ thousand)
1 - Code
5.01
5.03
5.04
5.04.06
5.04.08
5.05
5.05.01
5.05.03
5.05.03.02
5.06
5.06.04
5.07
2 - Description
Opening balances
Adjusted opening balances
Capital transactions with stockholders
Dividends
Reversal of prescribed dividends
Total comprehensive income/loss
Profit for the period
Reclassification to the result
Realization of deemed cost
Internal changes in equity
Share capital increase
Closing balances
Paid-up Capital reserves,
share stock options and
capital
treasury stock
316
1,017,700
1,017,700
316
0
0
0
0
0
0
0
0
0
0
0
0
0
0
322,300
0
322,300
0
1,340,000
316
Revenue
reserves
1,345,927
1,345,927
-24,252
-24,370
118
0
0
0
0
-322,300
-322,300
999,375
Retained
earnings/
accumulated
deficit
0
0
0
0
0
91,576
86,301
5,275
5,275
0
0
91,576
Other
comprehensive
income (loss)
-20,485
-20,485
0
0
0
-5,275
0
-5,275
-5,275
0
0
-25,760
Equity
2,343,458
2,343,458
-24,252
-24,370
118
86,301
86,301
0
0
0
0
2,405,507
Noncontrolling
interests
0
0
0
0
0
0
0
0
0
0
0
0
Consolidated
equity
2,343,458
2,343,458
-24,252
-24,370
118
86,301
86,301
0
0
0
0
2,405,507
Page 15 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated financial statements/statement of changes in equity - 1/1/2014 to 6/30/2014
(R$ thousand)
1 - Code
5.01
5.03
2 - Description
Opening balances
Adjusted opening balances
Capital transactions with
5.04
stockholders
5.04.06
Dividends
5.05
Total comprehensive income/loss
5.05.01
Loss for the period
5.05.03
Reclassification to the result
5.05.03.02 Realization of deemed cost
5.07
Closing balances
Paid-up
share capital
1,017,700
1,017,700
Capital reserves,
stock options and
treasury stock
316
316
Revenue
reserves
929,133
929,133
0
0
0
0
0
0
1,017,700
0
0
0
0
0
0
316
-6,370
-6,370
0
0
0
0
922,763
Retained
Other
earnings/
accumulated comprehensive
income/loss
deficit
0
190,313
0
190,313
0
0
7,786
-8,192
15,978
15,978
7,786
0
0
-15,978
0
-15,978
-15,978
174,335
Equity
2,137,462
2,137,462
Noncontrolling
interests
0
0
Consolidated
equity
2,137,462
2,137,462
-6,370
-6,370
-8,192
-8,192
0
0
2,122,900
0
0
0
0
0
0
0
-6,370
-6,370
-8,192
-8,192
0
0
2,122,900
Page 16 of 95
(A free translation of the original in Portuguese)
Quarterly information (ITR) - 6/30/2015 - CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Version: 1
Consolidated financial statements/statement of value added
(R$ thousand)
1 - Code
7.01
7.01.01
7.01.03
7.01.04
7.02
7.02.01
7.02.02
7.02.03
7.02.04
7.02.04.01
7.02.04.02
7.03
7.04
7.04.01
7.05
7.06
7.06.01
7.06.02
7.07
7.08
7.08.01
7.08.02
7.08.03
7.08.03.01
7.08.03.02
7.08.04
7.08.04.03
2 - Description
Revenue
Sales of goods, products and services
Revenues related to the construction of own assets
Constitution/reversal of provision for impairment of trade receivables
Inputs acquired from third parties
Costs of goods, products and services sold
Materials, electricity, outsourced services and other
Recovery of amounts - assets
Other
Costs related to the construction of fixed assets
Customer-related losses
Gross value added
Retentions
Depreciation, amortization and depletion
Net value added generated by the entity
Value added received through transfer
Equity in the results of investees
Finance income
Total value added to distribute
Distribution of value added
Personnel
Taxes and contributions
Remuneration of third-party capital
Interest
Rentals
Remuneration of own capital
Retained earnings/accumulated deficit for the period
Accumulated current year
1/1/2015 to
6/30/2015
5,647,586
5,478,729
182,352
-13,495
-2,990,827
-2,784,646
-84,669
7,347
-128,859
-182,352
53,493
2,656,759
-118,169
-118,169
2,538,590
223,490
12,359
211,131
2,762,080
2,762,080
321,188
2,223,130
131,461
109,122
22,339
86,301
86,301
Accumulated prior year
1/1/2014 to
6/30/2014
3,737,711
3,604,986
132,823
-98
-2,289,255
-2,046,510
-124,008
14,086
-132,823
-132,823
0
1,448,456
-109,158
-109,158
1,339,298
141,885
15,661
126,224
1,481,183
1,481,183
261,831
1,135,793
91,751
83,789
7,962
-8,192
-8,192
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Version: 1
Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
1. Investments
The investments made by the Company in property, plant and equipment, intangible assets and
interests in Small Hydroelectric Plants (SHPs or PCHs) in the first half of 2015 (1H15) amounted
to R$ 204.7 million (2014 - R$ 159.0 million), which was 28.82% above the same period of the
prior year, as presented in the table below:
June 30, 2015
%
R$
Investment
R$
June 30, 2014
%
Horizontal
analysis
Electric energy distribution
Electric energy generation
196,617
8,178
96.01
3.99
153,916
5,066
96.81
3.19
27.74%
61.43%
Total
204,795
100.00
158,982
100.00
28.82%
2. Share market
The IBOVESPA Index increased by 3.77% at the end of the second quarter of 2015 while the
Electric Energy Index (IRR) increased by 9.99% in the same period. The value of Company's
preferred shares decreased by 5.98% in 2Q15 and increased by 14.84% in the accumulated for the
last 12 months.
The table below presents the final quotations of the Company's shares at June 30, 2015 and the
related percentage variations, as well as of the main market indicators:
Celesc PN
Celesc ON
IBOVESPA
IEE
Closing
June 30, 2015
R$ 14.47
R$ 36.24
53,080
30,253
Performance*
Variation - %
2Q15 In 12 months
-5.98%
14.84%
0.00%
0.00%
3.77%
9.99%
-0.17%
7.54%
Source: DEF/DPRI
*Percentage variations with adjustment to yield
3. Market value of the share
The market values of Celesc's shares at June 30, 2015, according to the table above, were as
follows: R$ 14.47 for each preferred share (PN) and R$ 36.24 for each common share (ON).
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Version: 1
Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
Its majority stockholder is the State of Santa Catarina, owner of 50.2% of the Company's
common shares, corresponding to 20.2% of its total capital. The shareholding and corporate
structure of Celesc as at June 30, 2015 is presented below:
Source: DEF/DPRI
* Non-operational / Project under development
4. Human resources
At the end of the second quarter of 2015, the Celesc Group had 3,303 employees. The total
number of employees represents a 4.03% increase compared with the same prior-year period
(3,175 employees), due to the new admissions resulting from the Public Selection Recruitment
Processes carried out in 2013 and 2014.
5. Economic and financial performance
The Company's profit for 2Q15 was R$ 86.3 million, which represents a 1,153.48% increase in
relation to the same period in 2014 (loss of R$ 8.2 million).
The table below presents, through the main economic indicators, the Company's consolidated
performance for the period ended June 30, 2015, compared with the same period in the prior
year:
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Version: 1
Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
June 30, 2015
June 30, 2014
5,661,081
3,462,952
7,044
117,083
124,227
3.38%
3.59%
2.49%
101,023
6,888,398
211,229
2,405,507
86,301
3,737,809
2,665,011
6,836
100,866
114,952
3.78%
4.31%
-0.31%
41,449
5,800,583
211,083
2,122,900
(8,192)
Economic and financial data
Gross operating revenue (GOR)
Net operating revenue (NOR)
Results from activities
Adjusted EBITDA
EBITDA
Adjusted EBITDA margin (EBITDA/NOR)
EBITDA margin (EBITDA/NOR)
Net Margin (Profit/NOR)
Finance result
Total assets
Property, plant and equipment
Equity
Profit (loss)
Horizontal
analysis
51.45%
29.94%
3.04%
16.08%
8.07%
-0.40 p.p.
-0.73 p.p.
2.80 p.p.
143.73%
18.75%
0.07%
13.31%
1,153.48%
At the end of 2Q15, the Group's gross operating revenue totaled R$ 5,661.09 million, which
means an increase of 51.45% when compared to 2014 (R$ 3,737.8 million).
The net operating revenue totaled R$ 3,463.0 million at the end of 2Q15, that is, an increase of
29.94% when compared to the same period in 2014 (R$ 2,665.0 million).
The Adjusted EBITDA in 2Q15 totaled R$ 117.1 million, whereas the Adjusted EBITDA Margin
went from 3.78% in 2Q14 to 3.38% in 2015.
Changes in Earnings/Losses before Interest, Taxes and Depreciation/Amortization (EBITDA) are
as follows:
EBITDA reconciliation
Profit (loss)
Current and deferred Corporate Income Tax (IRPJ) and Social Contribution
on Net Income (CSLL)
Finance result
Depreciation and amortization
(-) Non-recurring effects
Provision for impairment test in subsidiary
Reversal of provision for impairment test in subsidiary
(=) EBITDA adjusted by non-recurring effects
June 30, 2015
86,301
June 30, 2014
(8,192)
21,766
(101,023)
117,183
124,227
56,477
(41,449)
108,116
114,952
203
(7,347)
117,083
(14,086)
100,866
6. Ownership structure
The Company's subscribed and paid-up share capital is R$ 1,340.0 million, represented by
38,571,591 shares with no par value, divided into 15,527,137 registered common shares
(40.26%) with voting rights and 23,044,454 registered preferred shares (59.74%) without voting
rights. Preferred shares have priority in the payment of non-cumulative dividends of 25%.
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Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
The Company's ownership structure, in terms of the number of shares held by the stockholders
with more than 5% of any share type or class, is as follows:
Common shares
Number
%
Government of the State of Santa Catarina
7,791,010
50.18
Angra Partners Volt Fundo de Inv em Ações
5,140,868
33.11
Celos
1,340,274
8.63
Geração Futuro Investment Fund
257,600
1.66
Centrais Elétricas Brasileiras - Eletrobras*
4,233
0.03
MCAP Poland FIA
Other
993,152
6.40
Total
15,527,137
40.26
Share capital: R$ 1,340,000,000.00 and amortized capital: R$ 1,340,000,000.00
* Listed Company
Source: DEF/DPRI
Stockholder
Shareholding base at June 30, 2015
Preferred shares
Total
Number
%
Number
%
191
7,791,201
20.20
437,807
1.90
5,578,675
14.46
230,800
1.00
1,571,074
4.07
2,400,000
10.41
2,657,600
6.89
4,142,774
17.98
4,147,007
10.75
2,904,200
12.60
2,904,200
7.53
12,928,682
56.10
13,921,834
36.09
23,044,454
59.74
38,571,591
100
7. Foreign shareholding
At the end of 2Q15, foreign investors held 15.50% of the Company's total share capital, which
represents 5,978,953 shares, the majority of which being preferred shares.
Shareholding by domicile
Foreign investors
Local investors
Total
Number of shares
5,978,953
32,592,638
38,571,591
%
15.50
84.50
100
Source: DEF/DPRI
8. Shares held by the controlling stockholder, management and members of the Statutory
Audit Board
The Company is subject to the arbitration of the Market Arbitration Chamber pursuant to an
arbitration clause in its bylaws.
Stockholder
Controlling
stockholder
Other stockholders
Total
Common shares
Number
%
9,229,460
59.44
6,297,677
15,527,137
40.56
100.0
Preferred shares
Number
%
234,305
1.02
22,810,146
23,044,454
98.98
100.0
Total
Number
%
9,463,765
24.54
29,107,823
38,571,591
75.46
100.0
Source: DEF/DPRI
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Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
9. Outstanding shares
Description
Total capital
Outstanding shares
Registered common
shares - CLSC3
Number
%
15,527,137
100.0
6,297,677
40.56
Registered preferred
shares - CLSC4
Number
%
23,044,454
100.0
22,810,146
98.98
Total
Number
38,571,591
29,107,823
%
100.0
75.46
Source: DEF/DPRI
10. Energy consumption
In the second quarter of 2015, the electric energy supplied by Celesc D to the captive market
increased by 1.17% in comparison with the same period in the prior year (4,234 GWh), reaching
4,284 GWh.
Total market (including free consumers) increased by 0.58%, totaling 5.695 GWh in 2Q15 (5.662
GWh in 2Q14).
The consumption of each class in the Captive Market and the increase of total market, are as
follows:
Residential
Industrial
Commercial
Rural
Other classes1
Free consum.
Captive
market
Total market
Source: DCL/DPCM/DVME
Note: Other Classes¹ = Government + Public lighting + Utilities + Resale. Own consumption is not considered.
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Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
11. Electrical energy market
2015
2014
Description
2Q
Accum.
2Q
Sales revenue by consumer class in thousands of reais
Residential
764,231 1,565,602
449,512
Industrial
749,917 1,316,604
424,063
Commercial
579,229 1,137,270
326,231
Rural
125,847
245,282
67,542
Government
64,880
121,172
38,925
Public lighting
61,458
104,967
30,719
Utilities
43,329
79,291
23,835
Subtotal
2,388,890 4,570,189 1,360,826
Supply
44,662
93,487
24,786
TOTAL
2,433,553 4,663,676 1,385,612
Consumption by consumer class in MWh
Residential
1,255,450 2,799,125 1,243,654
Industrial
1,120,308 2,182,173 1,152,839
Commercial
898,052 1,931,832
865,633
Rural
319,047
681,532
303,630
Government
104,511
213,920
105,429
Public lighting
145,997
289,560
140,309
Utilities
81,319
164,534
77,723
Subtotal
3,924,685 8,262,675 3,889,217
Supply
378,928
774,328
344,514
TOTAL
4,303,613 9,037,003 4,233,731
Average unit price per MWh (in Brazilian reais)
Residential
608.73
559.32
361.44
Industrial
669.38
603.35
367.84
Commercial
644.98
588.70
376.87
Rural
394.45
359.90
222.45
Government
620.79
566.44
369.21
Public lighting
420.95
362.51
218.94
Utilities
532.83
481.91
306.66
Subtotal
608.68
553.11
349.90
Supply
117.87
120.73
71.94
TOTAL
555.09
505.72
321.42
Source: DCL
Accum.
2Q15
Vertical variation
Accum.
2Q14
2015
Accum.
2014
Horizontal variation
Accum.
2Q15-14
15-14
1,033,457
789,986
701,108
151,107
73,561
61,218
47,171
2,857,607
64,639
2,922,246
31.4%
30.8%
23.8%
5.2%
2.7%
2.5%
1.8%
98.2%
1.8%
100%
33.6%
28.2%
24.4%
5.3%
2.6%
2.3%
1.7%
98.0%
2.0%
100%
32.4%
30.6%
23.5%
4.9%
2.8%
2.2%
1.7%
98.2%
1.8%
100%
35.4%
27.0%
24.0%
5.2%
2.5%
2.1%
1.6%
97.8%
2.2%
100%
70.0%
76.8%
77.6%
86.3%
66.7%
100.1%
81.8%
75.5%
80.2%
75.6%
51.5%
66.7%
62.2%
62.3%
64.7%
71.5%
68.1%
59.9%
44.6%
59.6%
2,813,403
2,273,337
1,903,016
691,345
217,039
283,780
162,121
8,344,041
718,569
9,062,610
29.2%
26.0%
20.9%
7.4%
2.4%
3.4%
1.9%
91.2%
8.8%
100%
31.0%
24.1%
21.4%
7.5%
2.4%
3.2%
1.8%
91.4%
8.6%
100%
29.4%
27.2%
20.4%
7.2%
2.5%
3.3%
1.8%
91.9%
8.1%
100%
31.0%
25.1%
21.0%
7.6%
2.4%
3.1%
1.8%
92.1%
7.9%
100%
0.9%
-2.8%
3.7%
5.1%
-0.9%
4.1%
4.6%
0.9%
10.0%
1.7%
-0.5%
-4.0%
1.5%
-1.4%
-1.4%
2.0%
1.5%
-1.0%
7.8%
-0.3%
367.33
347.50
368.42
218.57
338.93
215.72
290.96
342.47
89.95
315.32
109.7%
120.6%
116.2%
71.1%
111.8%
75.8%
96.0%
109.7%
21.2%
100%
110.6%
119.3%
116.4%
71.2%
112.0%
71.7%
95.3%
109.4%
23.9%
100%
112.5%
114.4%
117.2%
69.2%
114.9%
68.1%
95.4%
108.9%
22.4%
100%
116.5%
110.2%
116.8%
69.3%
107.5%
68.4%
92.3%
108.6%
28.5%
100%
68.4%
82.0%
71.1%
77.3%
68.1%
92.3%
73.8%
74.0%
63.8%
72.7%
52.3%
73.6%
59.8%
64.7%
67.1%
68.0%
65.6%
61.5%
34.2%
60.4%
12. Arbitration clause
The Company declares that it is subject to the arbitration of the Market Arbitration Chamber,
pursuant to an Arbitration Clause in Article 64 of its bylaws, which reads: "The Company, its
stockholders, managers and members of the Statutory Audit Board agree to resolve, through
arbitration before the Market Arbitration Chamber, any and all disputes or controversies that
could arise between them relating to, or resulting from, the application, validity, effectiveness,
interpretation, breach and its effects, of the provisions of Brazilian Corporation Law, the
Company's bylaws, the standards issued by the National Monetary Council (CMN), the Brazilian
Central Bank (BACEN) and the Brazilian Securities Commission (CVM), as well as of the other
rules applicable to the operation of the capital markets in general, besides those contained in the
Regulations of Corporate Governance Level 2, the Agreement for Participation in Corporate
Governance Level 2, and the Penalty and Arbitration Regulations of the Market Arbitration
Chamber".
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Centrais Elétricas de Santa Catarina S.A.
Comments on company performance
13. Independent auditors
In accordance with the provisions of CVM Instruction 381, of January 14, 2003, ratified by
Official Letter/CVM/SEP/SNC 02, of March 20, 2003, the Company informs that its independent
auditors did not provide any type of service other than those strictly related to external audit
activities.
Florianópolis, August 14, 2015.
Management
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
1. Operations
Centrais Elétricas de Santa Catarina S.A. ("Celesc" or "Company") is a public corporation
headquartered at Av. Itamarati, 160, in the district of Itacorubi, city of Florianópolis, State of
Santa Catarina, Brazil.
Celesc was initially listed on the Stock Exchange on March 26, 1973, and its shares are currently
traded on the São Paulo Stock Exchange at Level 2 of Corporate Governance of the São Paulo
Securities, Commodities and Futures Exchange - BM&FBovespa S.A., in São Paulo. The
Company is controlled by the Government of the State of Santa Catarina.
The main activity of the Company and its subsidiaries, joint ventures and associates is the
generation, transmission and distribution of electric energy. It also operates in the piped natural
gas distribution segment.
The main consolidated wholly-owned subsidiaries, joint ventures and associates at June 30, 2015
were:
Ownership percentage - %
Description
Subsidiaries
Celesc Geração S.A. (Celesc G)
Celesc Distribuição S.A. (Celesc D)
June 30, 2015
Direct
100
100
December 31, 2014
Direct
100
100
Ownership percentage - %
Description
Direct
June 30, 2015
Indirect
December 31, 2014
Direct
Indirect
Joint ventures
Companhia de Gás de Santa Catarina - SCGÁS
Empresa Catarinense de Transmissão de Energia S.A. - ECTE
Campo Belo Energética S.A.
Painel Energética S.A.
Rondinha Energética S.A.
Companhia Energética Rio das Flores S.A.
Xavantina Energética S.A.
Garça Branca Energética S.A.
17
30.88
-
30
32.5
32.5
25
40
49
17
30.88
-
30
32.5
32.5
25
40
-
Associates
Dona Francisca Energética S.A. - DFESA
Usina Hidrelétrica de Cubatão S.A.
23.03
40
-
23.03
40
-
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
1.1. Regulatory environment
The Brazilian electrical energy sector is regulated by the Federal Government through the
Ministry of Mines and Energy (MME), which has exclusive authority over the sector. The
regulatory policies applicable to this sector are implemented by the National Electric Energy
Agency (ANEEL).
The de-verticalization process of the electric energy distribution activity complies with the
provisions of Federal Law 10,848, of March 15, 2004, was authorized by State Law 13,570, of
November 23, 2005 and approved by ANEEL through Resolution 712 of October 3, 2006.
1.1.1. Concessions
a) Celesc Distribuição S.A.
On July 22, 1999, Celesc D entered into the Contract of Electric Energy Distribution concession
56, which regulates the exploration of electric energy distribution utilities. With the deverticalization process in 2006, the distribution activity was transferred to Celesc D.
This concession is effective until July 7, 2015. The concession of Celesc D is not onerous and,
therefore, there are no fixed commitments or payments to be made. According to the concession
contract, at the end of the term of validity, the assets and facilities linked to the distribution of
electric energy will become part of the Federal Government's assets, through indemnity of the
investments made but not yet amortized, provided that authorized by the National Electric Energy
Agency (ANEEL) and determined by the regulator.
Considering that the conditions established by the Technical Interpretation ICPC 01 - Concession
Contracts were fully met, Management of Celesc D concluded that its concession contracts is
within the scope of ICPC01 and, therefore, the assets linked to the concession are divided into
indemnifying asset and intangible asset. The tariff adjustment is on August 7 of each year and the
periodical tariff revision is every four years.
Celesc D holds a concession for electricity distribution services until July 7, 2015 and falls under
Provisional Measure (MP) 579, of September 11, 2012, which was converted into Federal Law
12,783 in January 2013. In June 2012, the Company requested an extension of this concession
contracts, based on the provisions established under the Concession Contract and, on
September 18, 2012, based on the previously issued Provisional Measure 579/12, the Company
renewed its request for the extension of the related concession contract, under the conditions
established by that legal instrument, and reserves the right to reconsider its request in the event
there is any change in prevailing contractual conditions. At October 15, 2012, the Company
ratified the request for extension.
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Up to June 3, 2015, there was great expectation relating to the standards and conditions for the
extension of the distribution concessions, based on the guideline established by Law
12,783/2013, which made it possible for the concessions to be extended for another period of 30
years.
Issued on that same date, Decree 8,461 sets forth the conditions for concession extension and
empowers ANEEL to instrumentalize the Amendment to the Concession Contract, as well as the
affected conditions relating to the quality of service, economic sustainability, reasonable tariffs,
and technical, operational and economic rationality.
Immediately thereafter, on June 10, 2015, ANEEL held Public Hearing 038/15, for the purpose of
debating with the distributing companies and the society about the conditions proposed for the
extension, which had expired on July 13, 2015.
Celesc D, along with other distributing companies and the Brazilian Association of Distributing
Companies (Associação Brasileira das Distribuidoras - Abradee), presented several contributions
that aimed at improving the standards and the compliance level, so as to provide the society of
the State of Santa Catarina with electric energy-distribution services based on quality and
sustainability.
Currently, the Company awaits the issue of a position by ANEEL in relation to the contributions
made during the Public Hearing, as well as the submission of the Amendment to the Concession
Contract for deliberation at the General Meeting of Stockholders of Celesc D, and subsequent
signature.
Another significant event that affects the progress of the extension process to be presented is the
decision issued by the Federal Audit Court (TCU) for process TC 003.379/2015-9 of June 12,
2015, establishing that "the Ministry of Mines and Energy (MME) should refrain from exercising
the jurisdiction established under Article 3-A, item II, of Law 9,427/1996 to establish, either
directly or indirectly, amendments that extend expiring distribution agreements, based on Decree
8,461/2015, up to the judgment of this matter". In spite of the fact that the ministers of the TCU
gave several signs that the process would have been finalized by July 8, 2015, a later date was
established, but not complied with. On July 29, the national press disclosed that the technical
report issued by the TCU points out to the weakness of the documents presented by the MME in
supporting the extension of concessions under the proposed conditions, thereby recommending
that the concessions be not extended for the companies that do not currently comply with quality
and sustainability requirements. The latest news regarding this matter suggests that it will be
resolved in August.
b) Celesc Geração S.A.
With a strong participation in the electric energy segment, emphasis on the areas of operation and
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
maintenance of power plants and sale of electric energy, subsidiary Celesc G, as provided in the
ANEEL concession contract 55, dated July 22, 1999, clause 2, has the following electricity
generation concessions at June 30, 2015:
Generating company
Palmeiras - Rio dos Cedros (ii)
Bracinho - Rio Bracinho (ii)
Garcia - Rio Garcia (iii)
Cedros - Rio dos Cedros (ii)
Salto - Rio Itajaí-Açu (ii)
Celso Ramos - Rio Chapecozinho (v)
Pery - Rio Canoas (vi)
Caveiras - Rio Caveiras (iv)
Ivo Silveira - Rio Santa Cruz (vii)
Piraí - Rio Piraí (viii)
São Lourenço - Rio São Lourenço
Rio do Peixe - Rio do Peixe
Total installed capacity
Location
Rio dos Cedros/SC
Schroeder/SC
Angelina/SC
Rio dos Cedros/SC
Blumenau/SC
Faxinal do Guedes/SC
Curitibanos/SC
Lages/SC
Campos Novos/SC
Joinville/SC
Mafra/SC
Videira/SC
Installed capacity
(MW)
24.60
15.00
8.92
8.40
6.28
5.40
30.00
3.83
2.60
0.78
0.42
0.52
106.75
Concession expiration date
11/7/2016
11/7/2016
7/7/2015
11/7/2016
11/7/2016
3/17/2035
7/9/2017
7/10/2018
(i)
(i)
(i)
(i)
(i) Generating hydroelectric plants without a definite concession period.
(ii) As required by Provisional Measure (MP) 579/2012, the Company filed on October 15, 2012
a request for extension of the concession for Small Hydroelectric Plants (PCHs) affected by that
MP on that date.
The Company's management analyzed the conditions established for the extension of the
concession term, as well as the potential economic and financial effects and the tax effects on
indemnity and tariff amounts, and also conducted various internal studies in order to conclude on
the non-acceleration of the expiration date of concession. At the Extraordinary Meeting held on
November 22, 2012, the Board of Directors, following the opinion of the Executive Board,
decided not to adhere to the terms of early renewal of the concessions for the plants of Celesc G,
affected by MP 579/12 in 2012.
(iii) Ordinance 255, issued by the MME on June 11, 2015, establishes that Celesc G will be
responsible for providing the electric energy generation service of Usina Garcia, so as to ensure
the continuity of the business, as from July 8, 2015 up to the assumption of the concessionaire.
(iv) In June 2013, the Company submitted to ANEEL a request to be informed on the rules and
tariffs applicable to PCH Caveiras, according to the terms of MP 579/12 (Law 12,783/13). On
March 10, 2015, ANEEL accepted the request filed by Celesc G to be informed on the conditions
for the extension of the concession of the plant under the quotas regime.
Celesc G is currently analyzing the technical and economic feasibility of adhering to the quotas
regime. It is also waiting for a position issued by ANEEL and submission of the Amendment to
the Concession Contract for deliberation of the Executive Board and the Board of Directors.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
(v) Following the conversion of MP 579/12 into Law 12,783/13, a potential legal interpretation
was identified for the plants that could be affected by the quotas regime, but had not yet reached
the mark of 60 months to the end of the concession term. According to this potential legal
interpretation, it would be possible to extend the concession term for up to 20 years, upon
approval of the extension project for the plants under this condition.
Afterwards, communications were established with ANEEL, which resulted in the issuance of
Report 0353/2013/PGE-ANEEUPGF/AGU, Technical Note 53/2015-SCG/ANEEL, and, lastly,
the Authorization Resolution 5,078, issued by ANEEL on March 17, 2015, which authorized the
increase of the installed capacity of PCH Celso Ramos to 12,815.92 kW and the renewal of the
concession for another 20 years, to be counted as from the Resolution issuance date, contingent
upon the beginning of the commercial operations of generating plants 3 and 4, up to the
expiration date of the current concession. On April 7, 2015, ANEEL sent to the Company the
second Amendment to the Concession Contract for the Use of Public Assets No. 006/2013,
entered into with ANEEL.
The process of contracting the plant expansion work is currently in course.
(vi) Usina Pery was excluded from the decision regarding the enrollment in rules established by
MP 579/12 with a dispute though an Ordinary Action with a preliminary injunction at the Federal
Court, with the objective of discussing the right to extend the concession for 20 years, as
established in Article 26, paragraph 7 of Federal Law 9.247 of December 26, 1996, or
alternatively, the postponement under the hybrid system, recommended by ANEEL. The request
was accepted and the period for the signing of the Amendment to the Concession Contract was
suspended.
The Federal Government appealed this decision through an interim appeal, but the request for the
suspensive effect was rejected by the Federal Regional Court (TRF) of the 4th Region (Porto
Alegre/State of Rio Grande do Sul). On February 17, 2014, a favorable decision was granted by
the Vice-president of TRF-4 in the records of the Precautionary Action filed by Celesc G,
suspending again the case until the final judgment and the closing of the lawsuit. At present,
Exceptional Appeals are being judged by the Superior Court of Justice (STJ) and the Supreme
Federal Court (STF).
(vii) Pursuant to a request filed by Celesc G, ANEEL, through Authorization Resolution 5,362, of
July 21, 2015, extinguished, as from July 7, 2015, the concession of PCH Ivo Silveira, located in
the city of Campos Novos, State of Santa Catarina, with installed capacity of 2.6 MW.
According to Law 13,097 of January 19, 2015, following the expiration date of the concession for
generation of hydroelectric energy equal to or lower than 3 MW, the plants will be exempt from
needing a concession, permission or authorization, and the concession will not have an
established expiration date. The process of registering the plant with ANEEL is currently in
progress.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
(viii) Following the request filed by Celesc G, ANEEL, through Authorization Resolution 5,363,
of July 21, 2015, extinguished, as from July 7, 2015, the concession of the Piraí Hydroelectric
Plant, located in the city of Joinville, State of Santa Catarina, with installed capacity of 780 kW.
As per the provision established under Article 7 of Law 12,783/13, this plant does not have a
Concession Contract any more, since, when its concession term expires, it will start operating
under the registration regime, with no established concession expiration date. The process of
registering the plant with ANEEL is currently in progress.
In addition, Celesc G has eight small hydroelectric power plants (PCH), built in partnership with
private investors.
Generating plant (operating)
PCH Rondinha
PCH Belmonte (Rio das Flores)
PCH Bandeirante (Rio das Flores)
PCH Prata (Rio das Flores)
Location
Passos Maia/SC
Belmonte/SC
Bandeirante/SC
Bandeirante/SC
Installed capacity (MW)
9.6
3.6
3.0
3.0
Ownership percentage - %
32.5
25.0
25.0
25.0
Generating plant (under construction)
PCH Xavantina (ix)
PCH Garça Branca (x)
Location
Xanxerê/SC
Anchieta/SC
Installed capacity (MW)
6.1
6.5
Ownership percentage - %
40.0
49.0
Generating plant (prospecting/project)
PCH Campo Belo
PCH Painel
Location
Campo Belo do Sul/SC
São Joaquim/SC
Installed capacity (MW)
10.0
9.2
Ownership percentage - %
30.0
32.5
(ix) On July 9, 2015, ANEEL, through Order 2,231, ANEEL authorized Generating Plants 1 and
2 of PCH Xavantina, with installed capacity of 3,037.5 kW each, to start operations, in trial
mode, as from July 10, 2015.
(x) Celesc entered into an ownership interest assignment agreement with Casaforte Energia S.A.
on March 24, 2015, through which it acquired 49% of the capital of Garça Branca Energética
S.A.
PCH Garça Branca is a private special-purpose entity, with no defined period of duration and
which started operations on October 15, 2008. It is exclusively engaged in the implementation,
operation, maintenance, generation and sale of electric energy. This PCH is located in the
municipalities of Anchieta and Guaraciaba, in the State of Santa Catarina, with an installed
capacity of 6.5MW.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
c) Companhia de Gás de Santa Catarina S.A. - SCGÁS
SCGÁS is responsible for the distribution of piped natural gas in Santa Catarina. Its stockholders
are Celesc; Gaspetro, a subsidiary of Petrobras, responsible for investments in the gas segment;
Mitsui Gás e Energia do Brasil, a private company belonging to the Mitsui Group since April
2006 with the acquisition of Gaspart/Gás Participações; and Infragás - Infraestrutura de Gás para
a Região Sul, a company established on December 13, 1990 with the specific objective of
providing an infrastructure for natural gas supply in the South region.
The concession contract for these services was signed on March 28, 1994 and is effective for 50
years from the date of signing.
d) Empresa Catarinense de Transmissão de Energia - ECTE
The main objective of ECTE is the rendering of services such as: planning, implementation,
construction, operation and maintenance of electric power transmission installations, including
the support and back office services, programming, measurements and other services necessary to
transmit electric power.
Through the ANEEL Agreement for Concession of Electric Power Transmission Public Service
88/2000, dated November 1, 2000, entered into with the Federal Government, through the
National Electric Energy Agency (ANEEL), ECTE was granted the concession of the Electric
Power Transmission Service for a 30-year term, which consists in the implementation,
maintenance and operation of the transmission line of 525 kV, 252.5 km long, from the Campos
Novos substation to the Blumenau substation, in the State of Santa Catarina. Celesc holds 30.88%
of the share capital of ECTE.
The ECTE system is part of the Basic Network of the Interconnected Electric System (SIN),
whose electric power transmission operation, under the supervision and regulation of ANEEL, is
coordinated and controlled by the National Electric System Operator (ONS), a private, non-profit
company authorized to operate by the Ministry of Mines and Energy (MME).
e) Dona Francisca Energética S.A. - DFESA
DFESA is a concessionaire that acts as an independent producer of electrical energy and owns
Dona Francisca Hydroelectric Plant, built on the Jacuí River in the State of Rio Grande do Sul,
with an installed capacity of 125 MW and assured energy of 80 MW. This plant was opened in
May 2001. The concession contract of DFESA dates back to August 28, 1998 and is effective for
35 years. Celesc holds 23.03% of the common shares of DFESA.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
f) Legislation applicable to concessions
i) Ratifying Resolution 1,574 of July 30, 2013 - Grant and transfer of CDE
ANEEL, through Technical Note 252, of July 31, 2014, ratified the transfer from Centrais
Elétricas Brasileiras S.A. - Eletrobras to Celesc D, in the accrual period from August 2014 to July
2015, referring to the discounts on the tariffs applicable to the users of the electric energy
distribution utilities, in the monthly amount of R$ 35,407.
On February 27, 2015, ANEEL approved, through the Ratifying Resolution 1,858, the new
monthly amount of R$ 40,102, effective from March to July 2015.
These amounts were accounted for in Other receivables, with an offsetting entry to Gross
operating revenue within "Donations, contributions and subsidies linked to the granted service".
ii) Decree 8,401 of February 4, 2015 - Tariff Flags
The Federal Government has created, through Decree 8,401, dated February 4, 2015, the Tariff
Flag Fund Centralizing Account.
Decree 8,401/2015 establishes that tariff flags will take into consideration the variations in the
cost of electric energy thermoelectric generation and the exposure to liquidation prices in the spot
market that affect the electric energy distribution agents connected to the National Interconnected
System (SIN).
ANEEL Technical Note 28, dated February 5, 2015, establishes that the funds obtained with the
tariff flags applied by the distribution companies should be transferred to the Tariff Flag Fund
Centralizing Account, and that CCEE will then transfer them to the distribution companies,
considering the difference between the thermoelectric generation costs and the exposure to the
settlement prices in the spot market and the income obtained according to the effective tariff
coverage.
The criteria applied to the tariff flags are as follows:
I - green flag tariff: to be applied in the months when the Variable Unit Cost (CVU) of the last
plant to be used is lower than R$ 200.00 MWh;
II - yellow flag tariff: to be applied in the months when the CVU of the last plant to be used is
equal to or lower than R$ 200.00 MWh and lower than the maximum limit of the Difference
Settlement Price (PLD), which is currently at R$ 372.73 MWh; and
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
III - red flag tariff: to be applied in the months when the CVU of the last plant to be used is equal
to or higher than the PLD (R$ 372.73 MWh).
The Tariff Flag system allows the dynamic adjustment of the extra generation costs that are
transferred to the consumers in the tariff applied to them. The prior practice consisted in
transferring the whole cost to the tariff in the annual or extraordinary tariff reviews. The
Government understands that the proper price disclosure may bring awareness to the society and
the consumers about their own responsibility regarding the rational consumption of limited
natural resources as well as the environmental and economic impacts of the electric energy
inefficient consumption.
Celesc D applied the red flag tariff to its consumers in the period from January to June 2015.
iii) Ratifying Resolution 1,858, of February 27, 2015 - Extraordinary Tariff Review (RTE)
On February 27, 2015, ANEEL authorized the indices for RTE for 58 concessionaires throughout
Brazil. The new tariffs became effective as from March 2 and vary according to the scenario of
each distribution company.
The RTE is provided in the Distribution Concession Contract and in the General Concession Act,
being also the mechanism used to promote the economic and financial balance of the
concessionaires when facing extra costs when these are not established by common review
procedures and, therefore, are not guaranteed for tariff coverage.
For the customers of Celesc D, the Tariff Adjustment Index to be applied has an average effect of
24.8%, varying from 21.31%, as applied for residential customers services with low voltage, and
29.90% for the A1 Group (industry), which is serviced with a voltage equal to or exceeding 230
kV.
The index for review in Celesc D for each voltage level, considering the green flag, is as follows:
Voltage level
Average effect Number of consumers
A1 (230kV or more)
29.90%
1
A2 (88kV to 138kV)
29.06%
44
A3 (69kV)
28.68%
25
A3a (30kV to 44kV)
28.68%
8
A4 (2.3 kV to 25kV)
24.64%
10,429
BT (lower than 2,3kV)
21.31%
2,779,792
(i) Information not reviewed
The purpose of the RTE amounts of Celesc D is to cover (i) the increase in the costs for
purchasing energy from the Itaipu Plant, which varied by 46.14% last January; (ii) the increase of
1,292% in the Energy Development Account (CDE) because of the termination of the Federal
Government subsidies for social programs involving the electric energy universalization and the
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
incentives for alternative energy generation; and (iii) the costs incurred in the purchase of energy
in adjustment bids, which are necessary to meet the increase in the demand.
2. Basis of preparation
2.1. Statement of compliance
2.1.1. Parent company and consolidated quarterly information
The parent company and consolidated quarterly information have been prepared and are being
presented in accordance with the accounting standard CPC 21 (R1), "Interim Financial
Reporting", issued by the Brazilian Accounting Pronouncements Committee (CPC) and the
International Accounting Standard (IAS) 34, "Interim Financial Reporting" issued by the
International Accounting Standards Board (IASB), in accordance with the standards issued by the
Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly
Information (ITR).
The issue of this interim accounting information was authorized by the Board of Directors on
August 7, 2015.
2.2. Measurement basis
2.2.1. Functional and presentation currency
The parent company and consolidated quarterly information is presented in Brazilian reais, which
is the Company's functional currency and the Group's presentation currency. All amounts are
rounded to thousands of Brazilian reais unless otherwise stated.
2.2.2. Critical accounting estimates and judgments
Accounting 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.
Based on assumptions, the Company makes estimates concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual results.
The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next periods are addressed below:
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
a) Fair value of other financial instruments
The fair value of other financial instruments that are not traded in an active market is determined
by using valuation techniques. The Company uses judgment to select the most adequate among a
variety of methods and make assumptions that are mainly based on market conditions existing at
the end of each reporting period.
b) Pension benefits
The present value of the pension obligations depends on a number of factors that are determined
on an actuarial basis using various assumptions. The assumptions used in determining the net cost
(income) for pensions include the discount rate. Any changes in these assumptions will impact
the carrying amount of pension obligations.
The Company determines the appropriate discount rate at the end of each year according to
current market conditions. This is the interest rate that should be used to determine the present
value of estimated future cash outflows expected to be required to settle the pension obligations.
In determining the appropriate discount rate, the Group considers the interest rates of high-quality
government or corporate bonds that are denominated in the currency in which the benefits will be
paid, and that have terms to maturity approximating the terms of the related pension obligation.
Other key assumptions for pension obligations are based in part on current market conditions.
c) Income tax and social contribution
The Company recognizes liabilities for situations where it is probable that additional taxes will be
due. Where the final tax outcome of these matters is different from the amounts that were initially
recorded, such differences will impact the current and deferred tax assets and liabilities in the
period in which such determination is made.
d) Contingencies
The Company is currently involved in a number of tax, labor, civil and regulatory lawsuits.
Provisions are recognized for probable losses. The Company has a present legal or constructive
obligation as a result of past events; it is probable that an outflow of resources will be required to
settle the obligation; and the amount can be reliably estimated.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The probability of loss is assessed based on the available evidence, including the assessment of
external legal counsel.
e) Impairment of non-financial assets
The recoverability of assets which are used to carry out the Company's activities is reassessed
whenever events or changes in circumstances indicate that the carrying amount of an asset or
group of assets may not be recoverable based on future cash flows. If the carrying amount of
these assets exceeds the recoverable amount, the net amount is adjusted and the useful life is
adjusted to new levels.
f) Use of Public Assets (UBP)
These are amounts contracted related to the right of use of the public asset for exploration of the
hydropower potential, resulting from onerous concession contracts with the Federal Government,
stated at the amortized cost and restated by the interest rates or contractual indexes incurred up to
the balance sheet dates, adjusted to present value, based on a discount rate approved by the
Company's Board of Directors.
The obligation is recorded in current and non-current liabilities, segregated from the financial
charges, and finance cost and amortization are recognized in the statement of operations.
3. Summary of significant accounting policies
The basis of preparation and accounting policies are the same as those adopted in the annual
financial statements for the year ended December 31, 2014. Accordingly, as determined in
Official Letter CVM/SNC/SEP 03/2011, the Company opted to present the explanatory notes to
this Quarterly Information in a summarized manner when there are no changes in relation to the
content already presented in its annual financial statements. In these cases, the full explanatory
note in the annual financial statements is identified, in order not to prejudice the understanding of
the Company's financial position and performance during the interim period. Therefore, the
corresponding information should be read in the summary note of significant accounting policies
note to the aforementioned financial statements.
3.1 New standards and interpretations to standards
The following new standards were issued by IASB but are not effective for 2015. The early
adoption of standards, even though encouraged by IASB, has not been implemented in Brazil by
the Brazilian Accounting Pronouncements Committee (CPC).
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
IFRS 15, "Revenue from Contracts with Customers", replaces IAS 11, "Construction Contracts",
IAS 18, "Revenue" and related interpretations and introduces the principles to be applied by an
entity to determine the measure and recognition of revenue.
Even though the effective date is January 1, 2017, entities that present their reports in accordance
with the IFRS may adopt it on an early basis. Management is yet to assess IFRS 15's full impact.
IFRS 9, "Financial instruments" addresses the classification, measurement and recognition of
financial assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014
and is effective as from January 1, 2018. It replaces the orientation included in IAS 39 related to
the classification and measurement of financial instruments. IFRS 9 retains but simplifies the
mixed measurement model and establishes three primary measurement categories for financial
assets: amortized cost, fair value through other comprehensive income and fair value through
profit or loss. There is now a new expected credit losses model that replaces the current incurred
loss impairment model. IFRS 9 relaxes the requirements for hedge effectiveness.
It also requires an economic relationship between the hedged item and hedging instrument and
for the "hedged ratio" to be the same as the one management actually use for risk management
purposes. Management is yet to assess IFRS 9's full impact.
4. Financial risk management
4.1. Financial risk factors
The Company's activities expose it to a variety of financial risks: market risk (including foreign
exchange risk and cash flow or fair value interest rate risk), credit risk and liquidity risk. The
Group's overall risk management program focuses on the unpredictability of financial markets
and seeks to minimize potential adverse effects on the Group's financial performance.
4.2. Market risk
4.2.1. Foreign exchange risk
This risk arises from the possibility that its subsidiaries may incur losses and cash restrictions due
to fluctuations in the foreign exchange rates, increasing the liability balances denominated in
foreign currency.
Subsidiary Celesc D is exposed in its operating activities to foreign exchange variation in the
purchase of electric energy from Itaipu. The compensation mechanism (CVA) protects the
companies from possible losses. However, this compensation will take place only with the
consumption and resulting billing of energy that occurred after the subsequent tariff adjustment,
in which such losses have occurred.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
4.2.2. Cash flow and fair value interest rate risk
This risk arises from the possibility of the Company incurring losses due to interest rate or other
debt indexing unit fluctuations that could increase its interest expenses on borrowings obtained in
the market, or that could reduce the interest income on the Company's financial investments.
Celesc has no derivative contracts to hedge this risk.
4.3. Credit risk
This risk arises from the possibility that the Company may incur losses as a result of the
difficulties in collecting amounts billed to its consumers, concessionaires and permittees. To
reduce this type of risk and assist in its management, the Company monitors consumer
receivables by carrying out several collection actions, including the interruption of supply if the
consumer fails to make payment. In the case of consumers, credit risk is low in view of the large
dispersion of the portfolio.
4.4. Liquidity risk
Cash flow forecasting is performed in the operating areas of the Company and consolidated by
the Controllership Department. This department monitors rolling forecasts of the Company's
liquidity requirements to ensure it has sufficient cash to meet operational needs.
Surplus cash held by the operating areas over and above the balance required for working capital
management is managed by the Finance and Economic Department/Treasury (DPEF/DVTS).
This department invests surplus cash in interest-earning current accounts, time deposits, money
market deposits and marketable securities, choosing instruments with appropriate maturities or
sufficient liquidity to provide adequate margin as determined by the above-mentioned forecasts.
The table below analyzes the Company's non-derivative financial assets and liabilities into
relevant maturity groupings, based on the remaining period from the balance sheet date to the
contractual maturity date.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The amounts disclosed in the table are the contractual undiscounted cash flows.
Consolidated
June 30, 2015
Less than
one month
From
one to
three
months
From three
months to one
year
From one
to five
years
More than
five years
Total
1,298,135
409,322
372,848
33,749
2,114,054
28,126
67,872
95,998
17,289
317,480
334,769
10,553
10,553
6,078
6,078
1,360,181
409,322
372,848
419,100
2,561,451
110% and 121.5%
of CDI
5% p.a.
6,404
4,035
10,028
7,821
112,252
32,231
347,409
73,520
5,473
476,092
123,081
2.5% to 8.7% p.a.
CDI + 1% p.m.
505
-
851
-
3,856
5,140
23,820
419,547
8,834
-
37,866
424,687
430,901
441,845
253,455
72,154
153,479
864,295
14,308
684,356
1,746,081
Rates %
Trade receivables
Cash and cash equivalents
Subsidy - Decree 7,891/13
Financial assets - "Portion A" CVA
Total assets
Bank borrowings
Eletrobras
Government Agency for Machinery
and Equipment Financing (Finame)
Debentures
14.2% p.a.(i)
Trade payables
Total liabilities
(i) Special System for Settlement and Custody (Selic) rate projected for the next 12 months.
4.5. Operational risks
4.5.1. Electrical energy shortages
The Brazilian Electrical Energy System is predominantly supplied by hydroelectric generating
plants. A long period of scarce rains during the wet season has been reducing the water volume in
the reservoirs of these plants, which results in higher purchase costs for electrical energy in the
short-term market and an increase in the amounts of System Charges as a result of the delivery
from thermoelectric plants. In an extreme situation, an energy rationing program could be
adopted, which would imply revenue reduction.
4.5.2. Non-renewal of concession risk
The Company has concessions for electrical energy generation, transmission and distribution and
gas distribution services, and expects them to be renewed by the concession grantor. On
September 18, 2012, Celesc D filed an extension request for the concession contract 56/1999, as
permitted by the Provisional Measure (MP) 579/2012, converted into Law 12,783/2013, which is
ruled by the Federal Decree 7,891 of January 23, 2013. The request was ratified on October 15,
2012. Following the issuance of Decree 8,461/2015 and the holding of Public Hearing 038/2015
by ANEEL, the process of extending the concession for another 30 years was materialized, and
Celesc D has been taking all necessary actions to sign the related Amendment to the Agreement.
Moreover, it should be highlighted that goals regarding technical quality and economical and
financial sustainability indicators will have to be reached during the first five years. These goals
are conditions for approval of the concession renewal. Therefore, the Company's management
considers as remote the risk of non-renewal of the electric energy distribution concession.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
For energy generation concession contract No. 55/1999, the Company opted for the non-renewal.
4.5.3. Additional sensitivity analysis required by the Brazilian Securities Commission
(CVM)
The sensitivity analysis table of the financial instruments shown below describes the risks that
could generate material effects to the Company, with the most probable scenario (scenario I)
according to management's evaluation, considering a three-month horizon when the next
financial information containing such analysis will be disclosed.
Two other scenarios are also presented, as required by CVM Instruction 475, of December 17,
2008, based on a 25% and 50% deterioration in the risk variables considered for Scenarios II and
III, respectively.
The sensitivity analysis presented considers changes in relation to a determined risk, with all
other variables associated with other risks being maintained constant.
Consolidated
June 30, 2015
Assumptions
Effects of the accounts on the results
Balances
1
CDI (%)
Financial investments
Borrowings
Debentures
(Scenario III)
14.02%
17.53%
21.03%
45,418
(62,585)
(42,586)
56,772
(78,231)
(53,232)
68,126
(93,877)
(63,878)
402,750
14.20%
57,176
17.75%
71,470
21.29%
85,764
5.58%
6.98%
8.37%
166,517
208,296
249,776
IGPM2 (%)
Indemnifiable assets (Concession) in service
(Scenario II)
323,949
(446,395)
(303,749)
SELIC (%)
Financial assets - "Portion" A CVA
(Scenario I)
2,984,181
4.6. Capital management
The Company's objectives when managing capital are to safeguard its ability to continue as a
going concern in order to provide returns for stockholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company can make adjustments to the
amount of dividends paid to stockholders, return capital to stockholders, issue new shares or sell
assets to reduce, for example, debt.
1
2
Future interest curve – BM&F DI 1 FUT M15, with maturity on November 3, 2015 – (closing July 17, 2015)
IGPM – General Market Price Index
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consistent with others in the industry, the Company monitors capital on the basis of the gearing
ratio. This ratio corresponds to the net debt divided by total capital.
Net debt is calculated as total borrowings (including current and non-current borrowings) and
debentures, less cash and cash equivalents. Total capital is calculated as equity plus net debt.
Consolidated
Description
June 30, 2015
594,338
303,749
(409,322)
December 31, 2014
556,465
302,888
(449,789)
488,765
409,564
Total equity
2,405,507
2,343,458
Total capital
2,894,272
2,753,022
16.89%
14.88%
Total borrowings
Debentures
Less: Cash and cash equivalents
Net debt
Gearing ratio - %
4.7. Fair value estimation
The carrying values of trade receivables and payables, less impairment losses, are assumed to
approximate their fair values. The fair value of financial liabilities for disclosure purposes is
estimated by discounting the future contractual cash flow at the current market interest rate that is
available to the Company for similar financial instruments.
The Company adopted CPC 40 (R1) for financial instruments that are measured in the balance
sheet at fair value; this requires disclosure of fair value measurements by level of the following
fair value measurement hierarchy:
 Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
 Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
 Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs) (Level 3).
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The following table presents the Group's assets measured at fair value at June 30, 2015. The
Company had no liabilities measured at fair value at this base date.
Consolidated
Description
June 30, 2015
Level 3
December 31, 2014
Level 3
Financial assets at fair value through profit or loss
Shares
Available-for-sale financial assets
Indemnifiable assets (Concession)
Other
137,261
137,261
3,087,772
217
2,890,451
217
Total assets
3,225,250
3,027,929
Specific valuation techniques used to value financial instruments include:
 quoted market prices or dealer quotes for similar instruments;
 other techniques, such as discounted cash flow analysis, are used to determine fair value for the
remaining financial instruments (see Notes 8.1 and 12).
5. Financial instruments by category
The financial statements by category at June 30, 2015 are as follows:
Consolidated
Description
Assets
Cash and cash equivalents
Shares
Indemnifiable assets (Concession)
Trade receivables
CCEAR-D (NE 10)
Financial assets - "Portion A" CVA
Other
Liabilities
Trade payables
Borrowings
Debentures
Assets at fair value
through profit or
loss
137,261
137,261
-
Loans and
receivables
Other
financial
liabilities
Available
for sale
409,322
-
Total
1,816,245
372,848
402,750
3,001,165
3,087,772
217
3,087,989
-
409,322
137,261
3,087,772
1,816,245
372,848
402,750
217
6,226,415
-
-
684,356
594,338
303,749
1,582,443
684,356
594,338
303,749
1,582,443
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The financial statements by category at December 31, 2014 are as follows:
Consolidated
Description
Assets at fair value
through profit or
loss
Assets
Cash and cash equivalents
Shares
Indemnifiable assets (Concession)
Trade receivables
CCEAR-D (NE 10)
Financial assets - "Portion A" CVA
Other
Liabilities
Trade payables
Borrowings
Debentures
Loans and
receivables
Other
financial
liabilities
Available
for sale
137,261
137,261
449,789
1,519,143
240,635
450,566
2,660,133
-
-
2,890,451
-
Total
217
2,890,668
-
449,789
137,261
2,890,451
1,519,143
240,635
450,566
217
5,688,062
-
689,343
556,465
302,888
1,548,696
689,343
556,465
302,888
1,548,696
6. Credit quality of financial assets
The credit quality of financial assets is assessed by reference to internal credit ratings:
Description
Trade receivables
Group 1 - Customers with no payment delays
Group 2 - Customers with average delays from 1 to 90 days
Group 3 - Customers with average delays of more than 90
days
June 30, 2015
Consolidated
December 31, 2014
1,059,262
244,137
512,846
791,683
174,624
552,836
1,816,245
1,519,143
All other financial assets held by the Company, especially current accounts and financial
investments, are considered high quality and do not present indications of impairment.
7. Cash and cash equivalents
Cash and cash equivalents are held solely for meeting short-term commitments. The Company
considers cash equivalents to be short-term investments that are readily convertible into known
amounts of cash.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Description
Cash at bank and on hand
Financial investments
Parent company
June 30,
December
2015
31, 2014
55
167
41,648
16,749
41,703
16,916
June 30,
2015
85,373
323,949
409,322
Consolidated
December
31, 2014
54,734
395,055
449,789
The highly-liquid financial investments are readily convertible into a known amount of cash and
are, therefore, subject to immaterial risk of change in value. These securities comprise Bank
Deposit Certificates (CDBs), with an average yield equivalent to 100% of the CDI rate variation.
8. Marketable securities
Non-current assets at fair value through profit or loss are measured based on the lower of
carrying amount and fair value and are not depreciated or amortized.
Description
Fair value through profit or loss
Casan shares3
Available for sale
Other investments
Non-current
Parent company
June
December
30, 2015
31, 2014
June
30, 2015
Consolidated
December
31, 2014
137,261
137,261
137,261
137,261
217
137,478
217
137,478
217
137,478
217
137,478
8.1. Companhia Catarinense de Águas e Saneamento - Casan
The Company owns 55,364,810 common shares (ON) and 55,363,250 preferred shares (PN),
representing 15.48% of Casan's share capital. As it does not have significant influence over
Casan, the Company measured its equity interest at fair value.
Since Casan's shares traded in the stock exchanges have no liquidity, the Company decided to
establish, through consistent bases accepted by the market, a new valuation criterion for this
investment, therefore adopting the discounted cash flow method.
Accordingly, the Company determined Casan's fair value based on the economic and financial
information of Casan. The historical acquisition cost of Casan's shares is R$ 110,716.
3
Companhia Catarinense de Águas e Saneamento – Casan
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
In 2014, after a new evaluation, fair value was estimated at R$ 137,261. At December 31, 2014,
the investment was evaluated under the discounted cash flow method, using a discount rate of
14.76%.
9. Trade receivables
a) Consumers, concessionaires and permittees
Consolidated
Description
Not yet due
Consumers
Residential
Industrial
Trading, services and other
Rural
Government
Public lighting
Utilities
Overdue for
up to 90 days
Overdue for
more than 90
days
June 30, 2015
December 31, 2014
289,799
344,632
205,778
48,498
28,615
27,387
19,867
964,576
111,704
58,417
40,233
10,034
6,443
261
119
227,211
53,646
316,665
67,239
7,470
33,347
16,316
1,180
495,863
455,149
719,714
313,250
66,002
68,405
43,964
21,166
1,687,650
358,619
639,863
264,764
53,230
66,111
34,398
15,730
1,432,715
78,334
15,248
1,104
94,686
4,426
12,500
16,926
6,958
10,025
16,983
89,718
15,248
23,629
128,595
54,287
13,190
18,951
86,428
1,059,262
244,137
512,846
1,816,245
1,519,143
(456,064)
1,360,181
(496,062)
1,023,081
1,342,150
18,031
1,016,683
6,398
Supply to other concessionaires
Concessionaires and permittees
Transactions involving CCEE
Other credits
Estimated losses with impairment of trade
receivables (b)
Current
Non-current
b) Estimated losses with impairment of trade receivables (b)
The breakdown by consumer class is as follows:
Consolidated
Description
Consumers
Residential
Industrial
Textile (b.2)
Trading, services and other
Rural
Government
Public lighting
Utilities
Concessionaires and permittees
June 30, 2015
53,637
146,695
136,128
62,363
4,514
31,854
15,250
1,040
1,105
December 31, 2014
49,799
191,062
136,128
61,337
4,612
32,528
15,022
991
1,105
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Description
Other
Current
Non-current
June 30, 2015
3,478
456,064
December 31, 2014
3,478
496,062
319,936
136,128
359,934
136,128
b.1) Changes
Consolidated
Description
At December 31, 2014
Provision recorded during the period
Trade receivables written off
At June 30, 2015
Amount
496,062
13,495
(53,493)
456,064
b.2) Estimated losses with impairment of trade receivables - Textile industry
In 2009, Celesc Distribuição S.A. implemented a debt recovery action plan for certain companies
in the textile sector, among which Buettner S.A., Companhia Industrial Schlösser S.A., Fábrica
de Tecidos Carlos Renaux S.A., Têxtil RenauxView S.A. and Tecelagem Kuehnrich -TEKA.
In 2011, Buettner S.A. and Companhia Industrial Schlösser S.A. filed for in-court reorganization
and, based on the probability that the recovery of these amounts is remote, Celesc D provisioned
a total of R$ 18,231 in 2011 and R$ 16,888 in 2012, which represents the total of the credit that
Celesc has with those companies.
In 2012, Fábrica de Tecidos Carlos Renaux S.A. also went into in-court liquidation; it presented,
however, a judicial recovery plan. On July 15, 2013, the Judicial Branch of the State of Santa
Catarina, Jurisdiction of Brusque, Commercial Court, adjudicated Fábrica de Tecidos Carlos
Renaux S.A. bankrupt. Therefore, in the third quarter of 2013, the Company recorded related loss
of R$ 42,992.
Also in 2012, TEKA filed for in-court reorganization with the Jurisdiction of Blumenau, Santa
Catarina. Considering that the reorganization plan has not yet been approved and the probability
of receiving this value is remote, in the management's opinion, Celesc D recorded a provision of
R$ 55,794, which is related to the total amount of the installments due to it by TEKA.
In relation to Têxtil RenauxView S.A., the management of Celesc D, considering the default of
the debt referring to the installment contract, and due to the remote possibility of receipt,
recorded a provision of the total amount receivable of R$ 45,215 in 2013.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
10. Other current assets
Consolidated
Other receivables
Dividends
Subsidy Decree 7,891/2013 - CCEAR-D
Available personnel
Advance - Program for Alternative Sources of
Electric Power (Proinfa)
Sundry advances
Social Integration Program (PIS)/Social
Contribution on Revenues
(COFINS)/Value-added Tax on Sales and
Services (ICMS) - Tax substitution
Shared infrastructure
Account - Flags
Low income program
Financial asset - "Portion A" - CVA (Note 11)
Indemnifiable asset (Note 12)
Other
June 30, 2015
7,642
372,848
11,521
December 31, 2014
14,212
240,635
6,060
11,103
1,786
11,103
(445)
38,506
506
922
12,252
402,750
3,087,772
28,088
3,975,696
23,179
9,433
9,917
450,566
2,890,451
13,324
3,668,435
11. Financial assets - "Portion" A - CVA
December 31,
2014
Addition
Disposal
Adjustment
Amortization
Consolidated
June 30,
2015
19,179
583,421
33,602
606
1,688
5,509
(165,226)
478,779
93,349
586,069
22,164
1,584
12,110
(2,030)
(256,690)
456,556
(6,580)
(285,599)
(25,663)
(466)
(918)
36,125
(283,101)
1,745
35,995
2,424
(4)
66
121
(6,433)
33,914
(6,516)
(363,508)
(4,035)
(20)
(1,357)
(3,673)
87,992
(291,117)
101,177
556,378
28,492
1,700
12,507
(991)
(304,232)
395,031
Regulatory assets - other financed items
Regulatory liabilities - neutrality - industry charges
Balance of financial items
(28,213)
(28,213)
24,683
(12,933)
11,750
-
-
24,182
24,182
24,683
(16,964)
7,719
Financial asset - Total, net
450,566
468,306
(283,101)
33,914
(266,935)
402,750
Description
Portion A
Energy Development Account (CDE)
Electric energy purchased for resale
Use of the basic network
Transportation of electric energy from Itaipu
CVA - prior years
Proinfa
System Service Charges (ESS)
Balance of Portion A - CVA
Financial items
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Description
June 30, 2015
December 31, 2014
CVA 2014 - period from 8.8.2013 to 8.7.2014
45,112
192,054
CVA 2015 - period from 8.8.2014 to 8.7.2015
349,919
286,725
395,031
478,779
Total da Portion A - CVA
The financial asset included in account Compensation of the Variation of Costs in "Portion A"
(CVA) is intended to account for non-manageable costs, as defined by ANEEL, that have not yet
been transferred to the electric energy tariffs.
Such costs form the basis for the tariff adjustment and are allocated to the statement of operations
as the related revenue is billed to the customers, according to Ministry Ordinances 25 and 116, of
January 24, 2002 and April 4, 2003, respectively, and supplementary provisions of ANEEL. This
account is adjusted at the SELIC rate.
As from December 10, 2014, after Celesc D signed the amendment to the concession contract,
which aimed at eliminating potential uncertainties regarding temporary differences arising from
CVA and other financial components, and based both on OCPC 08, "Recognition of Certain
Assets and Liabilities in General Purpose Accounting Reports of Electric Energy Distributing
Companies", and on CVM Resolution 737, of December 9, 2014, which approved Technical
Guidance OCPC 08, the regulatory assets and liabilities started to be prospectively recognized as
rights and obligations.
12. Indemnifiable assets (Concession)
Consolidated
Description
In service
Concession assets - Electric energy distribution (a)
June 30, 2015
December 31, 2014
2,984,181
2,984,181
2,676,623
2,676,623
Under construction
Concession assets - Electric energy distribution (a)
103,591
103,591
213,828
213,828
Total
3,087,772
2,890,451
Current
Non-current
3,087,772
-
2,890,451
-
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The electric energy distribution concession contracts of the Company comply with the criteria for
the application of Technical Interpretation ICPC 01 (IFRIC12), which addresses the concession
contract.
a) Concession assets - electric energy distribution
Indemnifiable assets
2,890,451
At December 31, 2014
(+) New investments
(-) Redemption
(+) VNR adjustment
130,013
(23,546)
90,854
At June 30, 2015
3,087,772
(i) In the six-month period ended June 2015, the Company recognized R$ 90,854 referring to the
restatement of the financial assets of electric energy distribution concession for the New Value of
Replacement (VNR), as restated at the IGP-M.
13. Taxes recoverable or to be offset
Parent company
Consolidated
Description
4
Value-added
PIS and COFINS5
IRPJ and CSLL6
Other
Total
Current
Non-current
June 30, 2015
2,525
307
2,832
2,832
-
December 31, 2014
4,001
101
4,102
4,102
-
4
Tax on Sales and Services (ICMS)
5
Social Integration Program (PIS) and Social Contribution on Revenues (COFINS)
6
Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL)
June 30, 2015
38,151
406
125,990
3,827
168,374
143,784
24,590
December 31, 2014
41,763
399
27,562
2,884
72,608
53,876
18,732
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
14. Related-party transactions
a) Transactions and balances
Parent company
Other relatedparty receivables
Description
At December 31, 2014
Government of the State of Santa Catarina
Underground network (i)
4,262
4,262
At June 30, 2015
Government of the State of Santa Catarina
Underground network (i)
4,262
4,262
Parent company
Description
At June 30, 2014
Government of the State of Santa Catarina
SC Parcerias S.A.
Description
At December 31, 2014
Government of the State of Santa
Catarina
ICMS
Trade receivables
Underground network (i)
Celos
At June 30, 2015
Government of the State of Santa
Catarina
ICMS
Trade receivables
Underground network (i)
Celos
Rondinha Energética S.A.
Finance income
479
479
Consolidated
Other
related-party
payables
Taxes
payable
Taxes to be
offset
Trade
receivables
Other
related-party
receivables
101,718
101,718
41,763
41,763
7,232
7,232
4,262
4,262
15,106
15,106
141,913
141,913
38,151
38,151
7,547
7,547
4,262
488
4,750
10,318
10,318
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Description
At June 30, 2014
Government of the State of Santa Catarina
ICMS
Revenue from sales
SC Parcerias S.A.
Taxes/revenue
deductions
At June 30, 2015
Government of the State of Santa Catarina
ICMS
Revenue from sales
Revenue
from sales
Finance income
679,682
679,682
24,508
24,508
479
479
1,038,248
-
36,960
-
1,038,248
36,960
-
(i) Underground network
In 1995, the Company signed an agreement for technical cooperation with the Government of the
State of Santa Catarina and the Municipal Government of Florianópolis to implement an
underground electric energy network in downtown Florianópolis.
The outstanding amount reflects the amount to be transferred by the Government of the State of
Santa Catarina to Celesc and is currently being renegotiated.
The Company is seeking alternatives together with the Government of the State of Santa Catarina
(State Finance Secretariat) to settle this debt.
b) Key management compensation
Key management compensation (Board of Directors, Statutory Audit Board and Executive
Board) is as follows:
Parent company
Description
Directors and officers
Fees
Social charges
Other
Consolidated
June 30,
2015
June 30,
2014
June 30,
2015
June 30,
2014
3,351
573
45
3,969
2,259
671
63
2,993
3,351
573
45
3,969
2,259
671
63
2,993
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
15. Investments in subsidiaries and associates
Parent company
Description
Subsidiaries
Celesc D
Celesc G
Joint ventures
SCGÁS
ECTE
Associates
DFESA
SPE7
Cubatão
(-) Provision for loss on investment
Consolidated
June 30,
2015
December
31, 2014
June 30,
2015
December
31, 2014
1,690,136
377,400
2,067,536
1,651,364
351,334
2,002,698
-
-
80,774
49,802
130,576
84,717
46,818
131,535
80,774
49,802
130,576
84,717
46,818
131,535
17,867
3,353
(3,353)
17,867
26,689
3,353
(3,353)
26,689
17,867
35,162
3,353
(3,353)
53,029
26,689
37,397
3,353
(3,353)
64,086
2,215,979
2,160,922
183,605
195,621
(a) Information on investments
Parent company
Company's
shares
(in thousands)
Description
At December 31, 2014
Celesc D
Celesc G
ECTE
SCGÁS
DFESA
Cubatão
At June 30, 2015
Celesc D
Celesc G
ECTE
SCGÁS
DFESA
Cubatão
7
Common
Company's interest
Share
Voting
capital
capital
Equity
Total assets
Profit (loss)
for the period
630,000
43,209
13,001
45,476
153,382
1,600
100%
100%
30.88%
17%
23.03%
40%
100%
100%
30.88%
51%
23.03%
40%
1,651,364
351,334
151,586
248,259
115,887
1,643
5,570,591
436,788
422,242
400,699
320,897
5,707
383,618
101,600
72,525
40,742
43,756
(2)
630,000
43,209
13,001
45,476
153,382
1,600
100%
100%
30.88%
17%
23.03%
40%
100%
100%
30.88%
51%
23.03%
40%
1,690,136
377,400
161,249
226,854
77,580
1,643
6,220,636
417,692
447,265
395,523
271,080
5,707
56,994
30,892
21,841
10,337
18,427
(48)
Special Purpose Entity
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Company's
shares (in
thousands)
Description
At December 31, 2014
ECTE
SCGÁS
DFESA
Cubatão
Rondinha Energética S.A.
Painel Energética S.A.
Campo Belo Energética S.A.
Cia Energética Rio das Flores S.A.
Xavantina Energética S.A.
Company's interest
Share
Voting
capital
capital
Common
At June 30, 2015
ECTE
SCGÁS
DFESA
Cubatão
Rondinha Energética S.A.
Painel Energética S.A.
Campo Belo Energética S.A.
Cia Energética Rio das Flores S.A.
Xavantina Energética S.A.
Garça Branca Energética S.A.
Equity
Total assets
Profit (loss)
for the period
13,001
45,476
153,382
1,600
21,125
4,745
1,350
7,455
162
30.88%
17%
23.03%
40%
32.5%
32.5%
30%
25%
40%
30.88%
51%
23.03%
40%
32.5%
32.5%
30%
25%
40%
151,586
248,259
115,887
1,643
60,513
5,498
6,033
31,466
15,592
422,242
400,699
320,897
5,707
86,598
5,498
6,446
49,132
26,690
72,525
40,742
43,756
(2)
(3,637)
(23)
(52)
1,271
-
13,001
45,476
153,382
1,600
12,838
4,745
1,350
7,705
163
4,358
30.88%
17%
23.03%
40%
32.5%
32.5%
30%
25%
40%
49%
30.88%
51%
23.03%
40%
32.5%
32.5%
30%
25%
40%
49%
161,249
226,854
77,580
1,643
33,992
5,536
6,063
32,575
15,592
8,772
447,265
395,523
271,080
5,707
61,646
5,536
6,475
48,679
38,380
8,991
21,841
10,337
18,427
(48)
(999)
(8)
(43)
(115)
(4)
b) Changes in investments
Description
At December 31, 2014
Dividends and interest on capital credited
Amortization of goodwill - Concession
Equity in results of investees
At June 30, 2015
Description
At December 31, 2014
Payments
Dividends credited
Amortization of goodwill - Concession
Equity in results of investees
Capital decrease
Other adjustments
At June 30, 2015
Celesc D
Celesc G
ECTE
SCGÁS
DFESA
Parent
company
Total
1,651,364
351,334
46,817
84,718
26,689
2,160,922
(18,222)
56,994
(4,826)
30,892
(3,761)
6,746
(4,966)
(735)
1,757
(13,066)
4,244
(44,841)
(735)
100,633
1,690,136
377,400
49,802
80,774
17,867
2,215,979
ECTE
46,817
SCGÁS
84,718
DFESA
26,689
SPE
37,397
(3,761)
6,746
49,802
(4,966)
(368)
1,757
80,774
(13,066)
4,244
17,867
6,436
(388)
(8,288)
5
35,162
Consolidated
Total
195,621
6,436
(21,793)
(368)
12,359
(8,288)
5
183,605
The goodwill on the acquisition of SCGÁS is amortized over the term of the concession contract
of this company.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
16. Property, plant and equipment a) Breakdown of balance
Consolidated
Description
At December 31, 2014
Cost of property, plant and
equipment
Provision for losses
Accumulated depreciation
At December 31, 2014
Addition
Disposal
Depreciation
(+/-) Transfers
Asset impairment losses
Realization of provision for losses
At June 30, 2015
Cost of property, plant and
equipment
Provision for losses (i)
Accumulated depreciation
At June 30, 2015
Land
7,824
Reservoirs,
dams and
water mains
47,375
Buildings and
constructions
2,082
Machinery and
equipment
13,055
Other
712
20,036
185,024
13,081
65,343
1,711
Construction
in progress
161,302
Total
232,350
446,497
(12,212)
-
(42,202)
(95,447)
(871)
(10,128)
(7,394)
(44,894)
(31)
(968)
161,302
-
7,824
47,375
2,082
13,055
712
161,302
232,350
(2,520)
164
(17,022)
383
1,567
(1,446)
743
(8,524)
322
(203)
4,771
(169)
(194)
102
1,422
(6)
(511)
-
1,422
(6)
(29,681)
(203)
7,347
5,468
32,303
1,379
9,421
451
162,207
211,229
20,036
185,407
13,081
65,665
1,518
162,207
447,914
(12,048)
(2,520)
5,468
64%
(40,635)
(112,469)
32,303
24%
(128)
(11,574)
1,379
41%
(2,825)
(53,419)
9,421
34%
70
(1,137)
451
31%
162,207
0%
(55,566)
(181,119)
211,229
(62,710)
(151,437)
(i) The recorded provision for losses of R$ 55,566 at June 30, 2015 results mainly from the nonrenewal of the concessions in the generating complex of Celesc G (Bracinho, Garcia, Ivo
Silveira, Palmeiras, Rio dos Cedros and Salto), in accordance with the decision taken at the
Extraordinary Meeting of the Board of Directors held on November 22, 2012, as mentioned in
Note 1.1.
17. Intangible assets
Parent company
Description
Goodwill on acquisition - ECTE
December 31, 2014
7,960
Amortization
(251)
June 30, 2015
7,709
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Concession
contracts (a)
Use of Public
Assets (b)
7,960
4,647
Item in
progress
3,525
2,720
(1,088)
14,248
(6,288)
6,279
(1,632)
3,525
-
1,003,592
84,273
1,632
7,960
4,647
3,525
102,037
5,473
(86,099)
3,647
(272)
1,360
(251)
7,709
(1,131)
3,516
320
3,845
5,793
(87,753)
20,077
982,293
(978,646)
2,720
(1,360)
14,248
(6,539)
6,279
(2,763)
3,845
-
1,009,385
(989,308)
3,647
1,360
7,709
3,516
3,845
20,077
At December 31, 2014
84,273
Software
purchased
1,632
Total cost
Accumulated
amortization
At December 31, 2014
976,820
(892,547)
Description
Celesc D
Addition
Amortization
At June 30, 2015
Total cost
Accumulated
amortization
At June 30, 2015
Average amortization
rate %
68%
10%
Goodwill
0.9%
Celesc G
18%
Total
102,037
(901,555)
0%
The goodwill on the acquisition of ECTE is amortized over the terms of the concession contract
of this company.
a) Concession contracts
In conformity with Technical Interpretation ICPC 01 (R1), Accounting for Concessions, the
portion of infrastructure that will be utilized during the concession, comprised of electric energy
distribution assets, net of consumer shares (special obligations), was recorded in intangible assets.
ANEEL, in conformity with Brazilian regulations, is responsible for establishing the economic
useful lives of the concession assets in the electric energy sector and for determining a procedure
for the periodic review of these rates. The rates established by ANEEL
are utilized in the tariff revision processes and during the calculation of the indemnity at the end
of the concession period and are recognized as a reasonable estimate of the useful lives of the
concession assets. Consequently, these rates were utilized as a basis for the valuation and
amortization of intangible assets.
b) Use of Public Assets
On July 11, 2013, concession contract 006/2013, which resulted from the change in the
exploration regime formalized by the fourth amendment to the concession contract for electric
energy generation No. 55/99, entered into between Celesc G and the Federal Government,
through ANEEL, has the objective of regulating the exploration of the hydro power potential by
means of generating facilities (PCH) and restricted interest transmission facilities. On August 15,
2013, Celesc G started to pay to Eletrobras the monthly quota for the Use of Public Assets
(UBP), which is payable for 60 months or by the end of the concession of each PCH.
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The concession contract includes, but is not limited to, the following provisions: (i) the Company
will pay to the Federal Government, for 5 years as from the signature of the contract, monthly
installments equivalent to 1/12 of the annual payment proposed, monetarily restated by the
variation of the Amplified Consumer Price Index (IPCA), of the Brazilian Institute of Geography
and Statistics (IBGE), based on the index related to the month prior to the publication of the
administrative act that approved the modification of the system of exploration of the concession;
(ii) without postponement the assets and facilities related to the hydroelectric use will become
part of the Federal Government assets, through indemnities of the investments made, provided
that previously authorized and not yet amortized, estimated by ANEEL audit.
The First Amendment to Concession Contract No. 006/13 was issued on December 30, 2014,
changing the public electricity service operating regime of the Caveiras and Palmeiras Plant to
Independent Electric Energy Producer. The plants are now regulated by said contract.
The compensation for this obligation is recorded in intangible assets and will be amortized over
the same duration of the obligation. The monthly amortization totaled R$ 182.4 up to June 2015.
The cash flows estimate for measuring the use of public assets arises from the use of the discount
rate defined by management, that is, 6.44%.
Generating plants
PCH Garcia
PCH Ivo Silveira
PCH Cedros
PCH Salto
PCH Bracinho
UHE Palmeiras
PCH Pery
UHE Caveiras
PCH Celso Ramos
Installment amounts - UBP
24.0
6.4
22.8
17.7
27.0
35.7
55.7
5.9
12.8
Concession up to
7/7/2015
7/7/2015
11/7/2016
11/7/2016
11/7/2016
11/7/2016
7/9/2017
7/10/2018
3/17/2035
18. Result with Corporate Income Tax (IRPJ) and Social Contribution on Net Income
(CSLL)
a) Breakdown of net deferred IRPJ and CSLL
Deferred assets
Description
Temporary differences
Provision for contingencies
Provision for loss on assets
Post-employment benefits
Deemed cost
Deferred income tax and social
contribution on tax loss
Effect of ICPC 01 - Concession
contract
Consolidated
Deferred - net
Deferred liabilities
June 30,
2015
December 31,
2014
June 30,
2015
December 31,
2014
June 30,
2015
December 31,
2014
121,970
67,922
221,957
-
124,917
70,381
239,968
-
34,876
37,593
121,970
67,922
221,957
(34,876)
124,917
70,381
239,968
(37,593)
28,934
-
-
-
28,934
-
-
70,880
-
(70,880)
-
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Deferred assets
Description
Amendment to CPC 38 –
Financial instruments
Portion A - CVA
Other provisions
Deferred liabilities
Consolidated
Deferred - net
June 30,
2015
December 31,
2014
June 30,
2015
December 31,
2014
June 30,
2015
December 31,
2014
5,768
417,617
9,593
473,793
142,703
1,428
179,007
87,334
162,785
545
359,137
(136,935)
(1,428)
238,610
(87,334)
(153,192)
(545)
114,656
Consolidated
Description
Assets
June 30, 2015
252,846
Liabilities
(14,236)
Deferred tax assets, net
238,610
December 31, 2014
130,068
(15,412)
114,656
b) Realization of deferred tax assets
The tax base for income tax and social contribution is not only the profit generated but also nontaxable income, non-deductible expenses, tax incentives and other variables, without immediate
correlation between Company's profit and income tax and social contribution expense. Thus, the
estimate of utilization of tax credits should not be taken as the only indicative of the Company's
future results.
The realization is based on the Action Plan to Demonstrate Celesc D's financial and economic
sustainability, which was submitted to ANEEL in November 2013.
In conformity with CVM Instruction 371 of June 27, 2002, the Company's management considers
that the deferred tax assets recognized on temporary differences will
be realized to the extent that the related contingencies and events reach a final resolution, when
they will be utilized against taxable profits.
The deferred taxes on the actuarial liabilities for employee benefits are being realized as
contributions are paid.
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
At June 30, 2015, the estimated realization of the total balance of deferred tax assets is as
follows:
Consolidated
June 30, 2015
26,742
40,261
40,261
48,522
261,831
417,617
Year
2015
2016
2017
2018
2018 onwards
Total
December 31, 2014
82,918
40,261
40,261
48,522
261,831
473,793
c) Reconciliation of current and deferred Corporate Income Tax (IRPJ) and Social
Contribution on Net Income (CSLL)
The reconciliation of income tax and social contribution expense between statutory and effective
rate is as follows:
Parent company
Profit before IRPJ and CSLL
Combined income tax and social contribution
statutory rate
IRPJ and SCLL
Consolidated
June 30, 2015
86,301
June 30, 2014
(8,192)
June 30, 2015
108,067
June 30, 2014
48,285
34%
34%
34%
34%
(29,342)
2,785
(36,743)
(16,417)
34,215
(412)
159
(4,864)
(90)
334
-
1,344
(320)
(3,665)
(146)
2
-
4,334
2,304
(32)
(412)
43
(2,326)
(4,864)
(90)
16,020
(21,766)
5,325
174
109
(1,035)
2,678
(15,350)
(146)
(33,971)
2,156
(56,477)
0.00%
0.00%
(145,719)
123,953
-20.14%
(30,846)
(25,631)
-116.97%
Permanent additions and exclusions
Equity in results of investees
Tax benefits
Tax incentives
Interest on capital
Non-deductible provisions
Non-deductible fines
IRPJ/CSLL on tax losses
Management interest
Energy used in excess of the contracted amount
Other additions(exclusions)
Current
Deferred
Effective rate
d) Federal Law 12,973 of May 13, 2014
On November 11, 2013, the Federal Government issued Provisional Measure (MP) 627, which
amends the federal tax legislation related to the IRPJ and CSLL, PIS and COFINS, in addition to
other measures, as well as Normative Instruction (IN) 1,397, of September 16, 2013, amended by
IN 1,422 of December 19, 2013.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Provisional Measure 627 was converted into Federal Law 12,973/12,973 on May 13, 2014, thus
definitely revoking the Transitional Tax Regime (RTT) as from 2015. Early adoption in 2014 is
allowed.
Management concluded the study of the possible effects that could arise from the early or normal
adoption of this Law and concluded that the effects on the financial statements would be
immaterial in either case, and then decided for the early adoption in Celesc within the established
period.
Management, however, did not carry out the early adoption for Celesc D and Celesc G. The
adoption is mandatory as from January 1, 2015.
Celesc D and Celesc G have calculated IRPJ, CSLL, PIS and COFINS pursuant to Federal Law
12,973/14 and Brazilian Federal Revenue Normative Instructions 1,515 and 1,556, dated
November 24, 2014 and March 31, 2015, respectively.
19. Trade payables
Consolidated
Description
June 30, 2015
December 31, 2014
524,948
561,962
37,959
Materials and services
37,774
49,826
Electric Energy Trade Chamber (CCEE)
71,808
8,771
684,356
689,343
Electric energy
Charges for the use of the electric energy network
80,651
20. Borrowings
The borrowing agreements are mainly collateralized by the receivables of the Companies.
Consolidated
Description
Bank borrowings (a)
Bank borrowings (b)
Eletrobras (c)
Finame (d)
Total
Current
Non-current
Interest rate and
commissions - %
110 to 121.5 of CDI
7.55 p.a.
5.00 p.a.
2.5 to 8.7 p.a.
June 30, 2015
446,395
112,830
35,113
594,338
175,860
418,478
December 31, 2014
375,932
9,950
135,861
34,722
556,465
322,586
233,879
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
a) Bank borrowings
On March 11, 2014, the Board of Directors authorized the obtaining of funds for working capital
of Celesc D in the following amounts: (i) R$ 90 million with Banco do Brasil, bearing interest
rate of 116% of the Interbank Deposit Certificate (CDI) rate; (ii) and R$ 300 million with Caixa
Econômica Federal, bearing interest rate of 121.5% of the CDI.
On April 27, 2015, this borrowing for working capital purposes was renegotiated with Caixa
Econômica Federal and its payment term was extended to 38 months, with a grace period of eight
months and monthly amortization starting after the grace period. This borrowing is guaranteed by
trade receivables.
On January 23, 2015, Celesc D obtained a borrowing of R$ 100 million with Banco do Brasil for
working capital purposes. Repayment will be made in 24 monthly, consecutive installments, with
maturities beginning on February 7, 2016 and ending on January 7, 2018, bearing interest rate of
110% of the CDI average rate, calculated based on business days (a year of 252 business days).
b) Bank borrowings
On January 17, 2013, the Board of Directors authorized the obtaining of a borrowing for working
capital purposes for Celesc D amounting to R$ 89 million at the rate of 7.55% p.a. This
borrowing was settled in the first quarter of 2015.
c) Eletrobras
The amounts are destined, among other purposes, for the rural electrification, using funds from
the Global Reversion Reserve (RGR) and the Eletrobras Financing Fund. In general, these
agreements have a grace period of 24 months, are repayable in periods of 60 months, with some
periods exceeding 96 months, are subject to an interest rate of 5% p.a. plus an administration fee
of 2% p.a. and a commission fee of 0,83%, and are collateralized by receivables. The agreements
have been approved by ANEEL.
d) Finame
The borrowings from the Government Agency for Machinery and Equipment Financing
(FINAME) were utilized to purchase machinery and equipment. Each purchase of equipment is
part of a contract, which was negotiated at annual interest rates varying from 2.5% p.a. to 8.7%
p.a. Investments were initially expected for 2011 and 2012. There were investments, however, in
2013, which may still occur up to 2017.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The amount contracted can reach R$ 50 million, and loans are repayable in 96 monthly
installments, starting in August 2011. This agreement is collateralized by receivables and has
been approved by ANEEL.
20.1. Breakdown of long-term maturities
Long-term amounts classified in non-current liabilities by maturity year are as follows:
Consolidated
Description
June 30, 2015
December 31, 2014
2016
100,865
153,215
2017
201,292
30,924
2018
85,417
20,883
2019
14,984
6,908
14,617
6,541
9,012
7,699
418,478
233,879
2020
2021 onwards
20.2. Changes in borrowings
Consolidated
Description
At December 31, 2014
New borrowings
Accrued charges
Transfers
Amortization of principal
Payment of charges
At June 30, 2015
Current
322,586
Non-current
233,879
Total
556,465
34,366
218,341
(365,438)
(33,995)
175,860
402,940
(218,341)
418,478
402,940
34,366
(365,438)
(33,995)
594,338
21. Debentures
The issue of 30 thousand debentures non-convertible into shares at the par value of R$ 10, for
legal purposes and effects, was on May 15, 2013. It matures over 72 months as from the issue
date; therefore its maturity will be on May 15, 2019. The amortization will be in three annual and
consecutive installments, the first of which payable as from the 48th month after the issue date,
that is, May 15, 2017, and the remuneration will be paid in semi-annual and consecutive
installments, with no grace period, as from the issue date.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
The funds from this issue are destined exclusively for reinforcement of the working capital and
realization of investments. Debentures will be entitled to the payment of interest corresponding to
100% of the accumulated variation of the daily average rates of Interbank Deposits (DI), "over
extra-Group", expressed in percentage per annum, on the basis of 252 business days, calculated
and disclosed on a daily basis by the Clearing House for the Custody and Financial Settlement of
Securities (CETIP), plus a surtax or spread of 1.30%.
At the end of each year, the Company has a covenant linked to the fact that the issue of
debentures does not present the Net Debt Relation/EBITDA superior to 2.
Consolidated
Description
At December 31, 2014
302,888
Monetary restatement
Payments
Debenture issue costs
At June 30, 2015
19,706
(19,027)
182
303,749
Current
Non-current
4,799
298,950
22. Taxes and social contributions
a) Composition
Parent company
Description
ICMS
PIS and COFINS
IRPJ and CSLL
Other
Current
Consolidated
June 30, 2015
December 31, 2014
June 30, 2015
December 31, 2014
112
93
205
1,336
90
1,426
141,913
39,870
146,308
6,968
335,059
101,718
25,374
33,374
8,822
169,288
23. Regulatory charges
Consolidated
Description
Energy efficiency program (PEE)
Emergency Capacity Charge (ECE)
Tariff Flag Account Charge (i)
Research and Development (P&D)
Energy Development Account (CDE) (ii)
June 30, 2015
December 31, 2014
159,846
69,400
37,239
65,368
516,731
152,825
65,565
65,164
8,854
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Description
June 30, 2015
December 31, 2014
Energy efficiency program (PEE)
Global Reversion Reserve (RGR)
Use of Public Assets
Other
159,846
73
3,545
2,337
854,539
152,825
73
4,657
1,175
298,313
Current
Non-current
637,472
217,067
113,208
185,105
(i) Through Circular Letter 1,857, of April 7, 2015, ANEEL instructed the electric energy
distributing companies to recognize their Tariff Flag Revenue, relating to unbilled supply, in
"Gross revenue deductions", with a contra-entry to "Other charges", in liabilities, and
simultaneously recognize the same amount in "Trade receivables", in assets, with a contra-entry
to "Gross revenue".
(ii) The monthly amounts referring to the discounts calculated on the tariffs applicable to the
users of electric energy distribution service are due by Eletrobras to Celesc D. Failing to
recognize these amounts has materially affected the cash flows of Celesc D, which has struggled
to meet its intra-sector liability needs, to the point of impairing its cash flows.
Celesc D filed a lawsuit claiming the compensation for the amounts and credits due by
Eletrobras. This lawsuit was granted a favorable preliminary injunction. In practical terms, the
lawsuit has the purpose of ensuring that the Energy Development Account (CDE) quotas owed
by Eletrobras to Celesc D are recognized in court as a sufficient financial resource for the
settlement of the obligations payable by Celesc D to Eletrobras, in the same way as the CDE
installments established by the regulating agency.
24. Provision for contingencies and judicial deposits
At the dates of the Quarterly Information, the Company had the following contingent liabilities
and related judicial deposits:
Description
Contingencies:
Tax
Labor
Civil
Regulatory
Parent company
Provision for risks
Judicial deposits
June 30, 2015
December 31, 2014
June 30, 2015
December 31, 2014
2,154
809
5,422
8,182
16,567
2,154
717
5,587
8,182
16,640
1,263
5,174
6,437
1,263
6,627
7,890
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Description
Consolidated
Provision for risks
Judicial deposits
June 30, 2015
December 31, 2014
June 30, 2015
December 31, 2014
3,782
47,607
55,204
47,960
154,553
3,782
43,254
49,689
47,960
144,685
26,855
36,891
146,956
51,518
24,172
286,392
29,392
64,738
132,137
46,078
24,172
296,517
Contingencies:
Tax
Labor
Civil
Regulatory
Environmental
The changes in provisions and deposits are as follows:
Description
At December 31, 2014
Addition
Reduction
At June 30, 2015
Parent company
Consolidated
Judicial deposits
Provision for
risks
Judicial
deposits
Provision for
risks
16,640
113
(186)
7,890
(1,453)
144,685
31,841
(21,973)
296,517
35,464
(45,589)
16,567
6,437
154,553
286,392
The Company is party to labor, civil, tax and regulatory lawsuits in progress, and is discussing
such matters at the administrative and judicial levels.
These lawsuits, when applicable, are supported by judicial deposits. The provisions for probable
losses arising from these matters are estimated and periodically adjusted by management,
supported by the opinion of its internal and external legal advisors.
The nature of the liabilities may be summarized as follows:
a) Tax contingencies
These contingencies relate to federal (COFINS, IRPJ, CSLL and pension) and municipal (ISS)
taxes.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
b) Labor contingencies
These contingencies refer to claims filed by the current and former employees of the Group and
the service providers related to the termination amounts, salaries, classification of functions and
other matters.
c) Civil contingencies
These mainly relate to litigations filed by consumers (industrial class action), demanding the
reimbursement of the amounts paid on account of the increase in electric energy tariffs, based on
Ordinances 38, of February 27, 1986 and 45, of March 4, 1986, of the National Department of
Water and Electricity (DNAEE), during the government's "Cruzado" Economic Plan. Celesc D
recorded a provision which was considered to be sufficient to cover the expected losses due to
lawsuits of this nature. As regards the effect on subsequent years, referred to as a "Cascading
Effect", it is not currently possible to evaluate the possible decisions of the Judicial Branch or to
estimate their effects.
Provisions for several civil lawsuits filed by individuals and legal entities were also set up. The
Company is a defendant in them with regard to indemnity resulting from failure in the electric
energy network (pecuniary damages, pain and suffering and loss of profits), expropriation, power
cut (pain and suffering and pecuniary damages), accident (pain and suffering, pecuniary damage
and pension), improper register in SERASA/SPC (Credit Protection Service) (pain and suffering),
among others.
d) Regulatory contingencies
The Group was fined by ANEEL during administrative proceedings due to alleged noncompliance with quality standards in relation to the services rendered to consumers and other
issues. The Company filed an appeal against the penalties imposed at the administrative level.
e) Environmental contingencies
In July 2014, after the issuance of the decision for the civil action (environmental nature)
5001151-41.2013.404.7200, filed by the Federal Public Prosecution Office, Celesc D provided
for the amount of R$ 20,177 as an addition to the amount of R$ 1,314.
f) Possible losses, not provided for
The Group has the following tax, civil and labor litigation involving risks of loss classified by
management as possible, based on the evaluation of the legal advisors, for which no provision for
estimated possible losses was recognized:
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Possible
Description
Tax (i)
Labor (ii)
Civil (iii)
Regulatory (iv)
Environmental (v)
Consolidated
June 30, 2015
2,253
8,308
43,399
22,173
16,228
December 31, 2014
2,383
5,443
38,210
14,877
16,218
92,361
77,131
i) Tax contingencies
These contingencies are related to federal taxes related to the payment of PIS, COFINS and
CSLL.
ii) Labor contingencies
These contingencies are mainly related to claims filed by the current and former employees of the
Group and service providers, related to joint/several liability matters such as overtime,
indemnities for occupational accidents, contractual guarantees and termination amounts, among
other matters.
iii) Civil contingencies
These contingencies are related to sundry civil claims filed by individuals and legal entities,
regarding indemnities resulting from material damages, pain and suffering and loss of profits,
accidents, bidding processes, among others.
iv) Regulatory contingencies
These contingencies refer to charges against the Company for non-fulfillment of regulatory
obligations, non-compliance with the metering system relative to meters for free consumers, noncompliance with legislation and ANEEL regulations.
v) Environmental contingencies
These contingencies refer to administrative and judicial proceedings filed by individuals and
legal entities, mainly involving indemnifications for material damages, pain and suffering and
loss of profits.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
25. Actuarial liabilities
Consolidated
Recognized obligations
Pension plans
Mixed/Transitory Plan (a)
Other employee benefits
Plano Celos Saúde (b)
Voluntary Termination Plan (PDV) 2012 (c)
Other benefits (d)
Total
Current
Non-current
June 30, 2015
December 31, 2014
709,071
709,071
703,923
703,923
452,207
302,286
118,848
499,196
316,689
151,060
31,073
31,472
1,161,278
174,654
986,624
1,203,144
170,853
1,032,291
Celesc D sponsors Fundação Celesc de Seguridade Social ("Celos"), a non-profit pension entity,
whose main objective is to grant benefits in addition to those provided by the National Institute of
Social Security to the plan participants, mainly its own employees.
a) Pension plans
In January 1997, a new supplementary pension plan was implemented, of a variable contribution
type, referred to as the "Mixed Plan", with a view to providing programmed retirement income,
disability retirement and death pension.
The employees enrolled in the Transitional Plan were offered the opportunity to migrate to the
Mixed Plan.
This migration occurred in two periods: from May to August 1999 and February 2000. More
than 98% of active employees opted for migration.
The Mixed Plan has the characteristics of a defined benefit plan for the portion of the
mathematical reserve existing on the migration date, and of a defined contribution plan for the
contributions made after the migration, as related with programmed retirement benefits to be
granted. The previous defined benefit plan, called the "Transitional Plan", still exists, covering
almost exclusively retired participants and their beneficiaries.
Celesc D signed an agreement on November 30, 2001 for the payment of 277 additional monthly
contributions, bearing interest of 6% per year and restatement based on the IGP-M inflation index
to cover the actuarial liability of the Mixed and Transitory Plans.
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
In October 2010, an amendment altered the inflation index from IGP-M to IPCA.
b) Celos Health Plan ("Plano Celos Saúde")
Celesc D offers to its current and retired employees and pensioners a health care plan (medical,
hospital and dental care).
c) Voluntary Termination Plan (PDV)
Through Resolution 168, of May 15, 2012, Celesc D approved the Workforce Adequacy Plan,
which comprises the Voluntary Termination Plan (PDV).
This program was implemented in November 2012 and initially 734 employees enrolled in it. Up
to June 2013, another 19 employees were included. 753 employees have left Celesc D.
As at June 30, 2015, Celesc D had settled its obligations with 242 beneficiaries.
d) Other benefits
These are amounts referring to the disability allowance, funeral allowance, natural or accidental
death indemnity and retirement minimum benefit.
25.1. Results of the actuarial evaluation
a) Evolution of the present value of obligations
Consolidated
Mixed Plan
Transitory
Plan
Celos
Saúde Plan
PDVI
2002
PDVI
2012
Lump
Sum
Plan
At December 31, 2013
Gross current service cost (with interest)
Interest on actuarial obligation
Benefits paid in the year
Contributions by plan participants
Obligations - gain (loss)
1,423,843
4,037
154,168
(107,378)
86,313
694,101
73,846
(72,234)
11,519
232,467
(24,759)
23,089
(53,763)
29,229
148,526
10,803
601
(10,929)
(475)
223,750
20,290
(85,288)
(7,691)
8,371
925
(346)
399
29,041
3,196
(4,098)
1,927
At December 31, 2014
1,560,983
707,232
354,789
-
151,061
9,349
30,066
Description
Other
benefits
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
b) Evolution of the fair value of assets
Celos Saúde Plan
PDVI
2002
PDVI
2012
Lump
Sum Plan
Consolidated
Other
benefits
333,797
(72,234)
32,495
35,484
(27,819)
35,600
(53,763)
29,229
38,268
4,281
(15,513)
-
-
7,730
(346)
864
(277)
-
301,723
38,102
-
-
7,971
-
Mixed
Plan
Transitory Plan
At December 31, 2013
Benefits paid in the year
Contributions by plan participants
Contributions by plan sponsor
Interest on assets
Gain (loss) on assets
1,185,760
(107,378)
31,119
129,622
23,445
At December 31, 2014
1,262,568
Description
c) Reconciliation of assets and liabilities recognized in the balance
Description
Total net actuarial liabilities (assets) to be
provided for at December 31, 2013
Present value of the actuarial obligations
with coverage
Benefits granted
Benefits to be granted
Fair value of assets
Total net actuarial liabilities (assets) to be
provided for at December 31, 2014
PDVI 2012
Lump
Sum Plan
Consolidated
Other
benefits
10,803
223,750
641
29,041
354,789
336,989
17,800
(38,102)
-
151,061
151,061
-
9,349
1,452
7,897
(7,971)
30,091
28,034
2,057
-
316,687
-
151,061
1,378
30,091
Mixed Plan
Transitory
Plan
Celos Saúde
Plan
PDVI
2002
238,083
360,304
196,867
1,560,983
1,299,074
261,909
(1,262,568)
707,232
707,232
(301,723)
298,415
405,509
d) Costs recognized in the statement of operations
Consolidated
Description
Transitory Plan
Mixed Plan
Lump Sum Plan
PDVI 2002
PDVI 2012
Health Care plan
June 30, 2015
21,290
17,731
1,600
6,469
5,805
52,895
June 30, 2014
16,786
11,546
1,629
301
10,145
(2,976)
37,431
e) Actuarial and economic assumptions
The actuarial and economic assumptions used were as follows:
Description
Discount rate
Expected return on plan assets
Salary growth rate
Future inflation rate
Medical cost increase rate
Turnover rate or table
Actual growth of plan benefits
Salary adjustment index
Benefit adjustment index
Factor to determine the actual salary amount
Factor to determine the actual benefit amount
December 31, 2014
10.93%
10.93%
5.55%
4.50%
10.77%
0.60%
0.00%
IPCA
IPCA
98.00%
98.00%
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
f) Biometric assumptions
Description
General mortality
Disabled mortality
Disability entry
December 31, 2014
AT-1983
AT-1949
Light Média
rated up by 25%
g) Estimated expense for 2015
The estimated expense for 2015 is shown below:
Description
Expense to be recognized in 2015
Transitory Plan
Mixed Plan
Lump Sum Plan
PDV 2012
Health Care plan
Other benefits
42,580
35,463
132
12,939
11,609
3,067
105,790
h) Changes in actuarial liabilities
Consolidated
Description
At December 31, 2014
Payment
Provision
At June 30, 2015
Mixed/
Transitory plan
703,923
(33,873)
39,021
709,071
Celos Saúde Plan
316,689
(20,208)
5,805
302,286
PDVI 2012
151,060
(38,681)
6,469
118,848
Other benefits
31,472
(1,999)
1,600
31,073
Total
1,203,144
(94,761)
52,895
1,161,278
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
26. Equity
a) Share capital
At the Annual General Meeting held on April 30, 2015, the Stockholders ratified the decision of
the Board of Directors, which approved the increase of the Company's share capital by up to no
more than the authorized amount of capital established in the Company's bylaws, through
capitalization of a part of the revenue reserve, without the issue of new shares.
The Company's subscribed and paid-up share capital is R$ 1,340,000, represented by 38,571,591
shares with no par value, divided into 15,527,137 registered common shares (40.26%) with
voting rights and 23,044,454 registered preferred shares (59.74%), also registered. Preferred
shares have priority in the payment of non-cumulative dividends of 25%.
The Company's ownership structure, in terms of the number of shares held by the stockholders
with more than 5% of any share type or class, is as follows:
Stockholder
Government of the State of Santa Catarina
Angra Partners Volt Fundo de Investimento em Ações
Celos
Geração L Par Fundo de Investimento
Centrais Elétricas Brasileiras - Eletrobras
Poland FIA
Other
Total
Common shares
Number
%
7,791,010
50.18
5,140,868
33.11
1,340,274
8.63
257,600
1.65
4,233
0.03
993,152
6.40
15,527,137
40.26
Preferred shares
Number
%
191
437,807
1.90
230,800
1.00
2,400,000
10.42%
4,142,774
17.98
2,904,200
12.60
12,928,682
56.10
23,044,454
59.74
Total
Number
7,791,201
5,578,675
1,571,074
2,657,600
4,147,007
2,904,200
13,921,834
38,571,591
%
20.20
14.46
4.07
6.89
10.75
7.53
36.09
100
b) Carrying value adjustments
The table below shows the net effect on equity of R$ (25,760) at June 30, 2015 and R$ (20,485)
at December 31, 2014:
Carrying value adjustment
Deemed Cost - Celesc G
Actuarial liability adjustment - Celesc D (CPC - 33)
June 30, 2015
67,700
(93,460)
(25,760)
Consolidated
December 31, 2014
72,975
(93,460)
(20,485)
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
c) Basic and diluted earnings per share
The calculation of the basic and diluted earnings per share at June 30, 2015 was based on the
profit for the period and the weighted average number of outstanding common and preferred
shares during the period presented.
At June 30, 2015, the number of shares of the Company did not change. There were no
transactions involving common shares or potential common shares between December 31, 2014
and the date of completion of this quarterly information.
In the periods ended June 30, 2015 and 2014, the Company did not have instruments convertible
into shares that would generate a dilutive impact on earnings per share.
d) Breakdown of basic earnings
June 30, 2015
Consolidated
June 30, 2014
Weighted average number of shares (in thousands):
Registered common shares - ON
Registered preferred shares - PN
15,527
23,044
15,527
23,044
Basic earnings (losses) per share attributed to the owners of the Company (in R$):
Registered common shares - ON
Registered preferred shares - PN
2.1113
2.3224
(0.2004)
(0.2205)
32,782
53,520
86,301
(3,111)
(5,081)
(8,192)
Basic earnings (loss) attributable to owners of the Company (R$):
Registered common shares - ON
Registered preferred shares - PN
27. Insurance
At June 30, 2015, the insurance policies contracted indicate the following levels of coverage:
Company
Line
Celesc D
Surety insurance
Celesc D
Named perils
Celesc G
Fire/lightning/explosion
Celesc G
Aircraft crash
Celesc G
Windstorm
Celesc G
Electrical damage
(i) Information not reviewed
Insured assets
Concessionaire assets and rights
Substations
Plants and substations
Plants and substations
Plants and substations
Plants and substations
Period
11.8.2011 to 12.31.2015
5.14.2014 to 5.15.2016
6.8.2015 to 6.8.2016
6.8.2015 to 6.8.2016
6.8.2015 to 6.8.2016
6.8.2015 to 6.8.2016
Consolidated
Amount covered
400,000
20,000
18,768
9,384
9,384
18,768
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Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
28. Segment information
Management has determined the Group's operating segments based on the reports reviewed by
the Executive Board to make strategic decisions.
The presentation of the segments is consistent with the internal reports submitted to the
Company's Executive Board, which is responsible for allocating funds to and evaluating the
performance of the segments.
Business segment reporting for the periods ended March 30, 2015 and 2014, as reviewed by the
Executive Board, is as follows:
June 30, 2015
Parent company
Celesc D
Celesc G
Consolidationrelated
adjustments
Net operating revenue (NOR)
Cost of sales
-
3,389,620
(3,195,126)
74,436
(31,826)
(1,104)
1,104
3,462,952
(3,225,848)
Gross operating result
-
194,494
42,610
-
237,104
(16,743)
1,453
100,633
(87,321)
(160,357)
26,538
-
(375)
(4,462)
(1,152)
(388)
(87,886)
(87,696)
(181,562)
26,839
12,359
85,343
1,968
(1,010)
(26,646)
204,191
(112,216)
36,233
8,560
(470)
(87,886)
(3,588)
3,588
7,044
211,131
(110,108)
958
91,975
8,090
-
101,023
86,301
-
65,329
(8,335)
44,323
(13,431)
(87,886)
-
108,067
(21,766)
86,301
56,994
30,892
(87,886)
86,301
2,488,939
83,432
6,220,636
4,530,500
417,692
40,292
Description
Selling expenses
General and administrative expenses
Other income (expenses), net
Equity in results of investees
Results from activities
Finance income
Finance costs
Finance result, net
Profit (loss) before IRPJ and CSLL
IRPJ and CSLL
Profit (loss) for the period
Additional information
Total assets
Total liabilities
Total
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
June 30, 2014
Parent
company
-
Celesc D
2,566,893
(2,383,108)
Celesc G
98,999
(16,792)
Consolidationrelated
adjustments
(881)
881
-
183,785
82,207
-
265,992
(13,333)
18
3,952
(74,318)
(138,052)
(44,729)
-
(320)
(3,059)
(1,024)
(2,206)
13,915
(74,638)
(154,444)
(45,735)
15,661
(9,363)
2,219
(1,048)
(73,314)
117,714
(83,231)
75,598
6,291
(496)
13,915
-
(6,836)
126,224
(84,775)
1,171
34,483
5,795
-
41,449
Profit (loss) before IRPJ and CSLL
IRPJ and CSLL
(8,192)
-
(38,831)
(30,137)
81,393
(26,340)
13,915
-
48,285
(56,477)
Profit (loss) for the period
(8,192)
(68,968)
55,053
13,915
(8,192)
2,135,250
12,350
5,086,077
3,617,352
381,274
50,582
Description
Net operating revenue (NOR)
Cost of sales
Gross operating result
Selling expenses
General and administrative expenses
Other income (expenses), net
Equity in results of investees
Results from activities
Finance income
Finance costs
Net finance result
Additional information
Total assets
Total liabilities
Total
2,665,011
(2,399,019)
28.1. Consolidated operating income
Description
Gross operating revenue (GOR)
Supply of electric energy (a)
Supply of electric energy (a)
Availability of the electric power grid
Leases and rentals (i)
Revenue from rendering of services
Spot energy
Revenue from regulatory assets and liabilities
Other operating income
Donations and subsidies (i)
Construction revenue
Deductions from gross operating revenue
Value-added Tax on Sales and Services (ICMS)
Social Integration Program (PIS)
Social Contribution on Revenues (COFINS)
Services Tax (ISS)
Global Reversion Reserve (RGR)
Energy Development Account (CDE)
Research and Development (P&D)
Energy Efficiency Program (PEE)
Inspection Fee - ANEEL
Other charges
Net operating revenue (NOR)
June 30, 2015
June 30, 2014
4,604,906
139,517
213,206
798
219,110
54,940
4,303
241,949
182,352
5,661,081
2,880,070
148,910
109,057
7,942
794
255,373
4,474
198,366
132,823
3,737,809
(1,038,248)
(96,714)
(445,472)
(440)
(546,911)
(14,555)
(14,376)
(4,174)
(37,239)
(2,198,129)
3,462,952
(679,682)
(57,621)
(265,412)
(1)
(1,517)
(45,091)
(11,737)
(11,737)
(1,072,798)
2,665,011
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
(i) Amount transferred to Eletrobras, referring to the reimbursement of the discounts on tariffs
applicable to the users of the electric energy distribution utilities, according to Article 13, item
VII, of Federal Law 10,438, of April 26, 2002,
as established by Provisional Measure 605, of January 23, 2013, and in compliance with the
provision in Article 3 of Decree 7,891, of January 23, 2013. The amount of the revenue recorded
as Subvention and Transfer of CDE in 2Q15 was R$ 231,221. The other ones refer to the Low
Income Program, amounting to R$ 10,728.
a) Supply of electric energy
The analysis of gross revenue from electric energy supply, by consumer class, is as follows:
Number of consumers (i)
Description
MWh (i)
Gross revenue
June 30, 2015
June 30, 2014
June 30, 2015
June 30, 2014
June 30, 2015
June 30, 2014
2,120,473
101,583
245,478
233,874
21,644
591
2,845
2,726,488
49
2,726,537
2,042,992
98,514
236,038
232,015
21,134
562
2,623
2,633,878
82
2,633,960
2,799,125
2,323,920
1,931,832
681,532
213,920
289,560
164,534
8,404,423
1,442,427
9,846,850
2,813,403
2,379,614
1,948,399
691,345
217,039
283,780
162,121
8,495,701
882,538
9,378,239
1,565,602
1,351,321
1,137,271
245,282
121,172
104,967
79,291
4,604,906
139,517
4,744,423
1,033,456
805,709
707,847
151,107
73,562
61,218
47,171
2,880,070
148,910
3,028,980
Residential
Industrial
Commercial
Rural
Government
Public lighting
Utilities
Total supply
Electric energy supply
Total
(i) Information not reviewed
28.2. Consolidated operating costs and expenses
Consolidated operating costs and expenses are as follows:
June 30, 2015
Description
Electric energy purchased for resale (a)
Personnel (b)
Directors and offices
Actuarial expense
Private Pension Entity (b)
Material
Cost of construction
Third-party services and costs
Depreciation and amortization
Net provisions
Leases and rentals
Financial compensation regarding the use of
water resources
Other costs and expenses
Costs of
assets and/or
services
2,733,331
157,248
8,269
6,431
182,352
35,623
101,183
(7,347)
726
-
General and
administrative
expenses
63,184
3,969
52,895
3,282
2,423
29,436
16,000
-
8,032
3,225,848
10,373
181,562
26,001
1,223
1
28,736
(39,998)
-
Other
expenses/net
income
5,117
210
(9,922)
13,032
609
Total
2,733,331
251,550
3,969
52,895
12,774
8,855
182,352
94,005
117,183
(57,267)
13,758
609
71,733
87,696
(35,885)
(26,839)
54,253
3,468,267
Selling
expenses
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
June 30, 2014
Description
Electric energy purchased for resale (a)
Personnel (b)
Directors and offices
Actuarial expense
Private Pension Entity (b)
Material
Cost of construction
Third-party services and costs
Depreciation and amortization
Net provisions
Inspection Fee - ANEEL
Financial compensation regarding the use of
water resources
Other costs and expenses
Costs of
assets and/or
services
2,001,031
134,727
7,290
7,907
132,823
32,184
91,064
(14,086)
-
General and
administrative
expenses
51,707
2,993
37,431
2,200
2,600
32,840
17,052
-
6,079
2,399,019
7,621
154,444
Selling
expenses
17,649
907
40,255
98
-
Other
expenses/net
income
6,927
223
20,815
2,921
Total
2,001,031
211,010
2,993
37,431
10,397
10,507
132,823
105,502
108,116
6,827
2,921
15,729
74,638
468
14,381
45,735
468
43,810
2,673,836
a) Electric energy purchased for resale
Consolidated
Description
Açucareiro Zillo Lorenzetti S.A.
Aliança Geração de Energia S.A.
Arembepe Energia S.A.
Borborema Energética S.A.
Brentech Energia S.A.
BTG Pactual Comercializadora
Candeias Energia S.A.
Capitale Energia Comercializadora
Cemig Geração e Transmissão S.A.
Centrais Elétricas Brasileiras S.A. - Eletrobras
Centrais Elétricas Cachoeira Dourada S.A.
Centrais Elétricas da Paraíba S.A.
Centrais Elétricas de Pernambuco S.A.
Centrais Elétricas Norte do Brasil
Cia de Ger. Term. de E.E. - Eletrobras CGTEE
Companhia Energética de Petrolina - CEP
Companhia Energética de São Paulo - CESP
Companhia Energética Estreito
Companhia Energética Potiguar
Copel Geração e Transmissão S.A.
Eletrobras Termonuclear S.A.
Energética Camacari Muricy S.A. - ECM
Energética Suape II S.A.
Enguia Gen Ba Ltda. - Jaguarari
Foz do Chapecó Energia S.A.
Furnas Centrais Elétricas S.A.
Geradora de Energia do Norte S.A.
Lages Bioenergética Ltda.
Linhares Geração S.A.
Petrobrás S.A. - Ute Governador Leon
Pie - RP Termoeletrica S.A.
Porto do Pecem Geração de Energia
Santo Antônio Energia S.A.
Serra do Facão Energia S.A.
Termelétrica Petrobras S.A.
Tractebel Energia S.A.
Tradner Ltda.
Usina Termelétrica de Anápolis Ltda.
Usina Xavantes S.A. - Aruanã
June 30, 2015
7,460
16,604
15,884
44,624
5,739
5,586
75,231
458,645
6,378
7,770
149,469
7,242
13,244
72,834
62,803
17,213
73,230
63,946
55,612
30,167
8,138
18,134
110,535
5,345
21,938
5,426
290,913
13,508
42,274
62,280
8,472
219,363
14,465
19,934
41,446
GWh (i)
33
143
25
125
16
16
374
2,004
54
19
137
52
193
99
433
102
66
470
359
101
68
103
813
18
96
16
903
38
234
539
48
1,418
41
16
18
June 30, 2014
248,160
206,313
92,699
62,807
32,404
64,431
23,839
16,226
58,613
17,061
81,027
61,808
107,019
16,158
61,441
58,592
53,766
35,274
21,326
16,956
31,200
14,484
(225,993)
GWh (i)
2,077
1,385
668
121
325
139
122
100
103
101
500
480
802
25
473
363
121
19
97
69
238
195
-
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consolidated
Description
UTE Porto do Itaqui Geração de Energia
Regulated Contracting Environment Account
Tariff Flag Account
Other
June 30, 2015
20,531
(6,569)
94,962
2,180,776
GWh (i)
120
817
10,127
June 30, 2014
47,434
139,389
32,691
1,375,125
GWh (i)
101
68
8,692
259,569
232,530
60,456
208
420,179
143,973
61,754
790
192
552,555
2,733,331
208
10,335
625,906
2,001,031
982
9,674
Electric energy purchased for resale - CP
CCEE
Charge for the use of the electric energy network
Proinfa
(i) Information not reviewed
b) Personnel and private pension entity
Parent company
Description
Personnel
Remuneration
Social charges
Profit sharing and results
Fringe benefits
Provisions and indemnities
Other
Private pension entity
Consolidated
June 30, 2015
June 30, 2014
June 30, 2015
June 30, 2014
10,262
131
28
110
8,466
41
33
98
136,274
50,771
11,083
17,007
36,263
152
118,487
42,927
6,342
13,398
29,746
110
10,531
8,638
12,774
264,324
10,397
221,407
28.3. Finance income and costs
Parent company
Description
Finance income
Income on financial investments
Interest on electric energy bills paid in arrears
Monetary variations
Monetary restatement on regulatory assets
Financial incentive - social fund
Discounts - suppliers
Foreign exchange losses on electric energy sold
Income on dividends
Interest on capital
Reversal of interest on capital
Finance income from New Replacement Value (NRV)
(-) PIS/COFINS on finance income
Other finance income
Consolidated
June 30, 2015
June 30, 2014
June 30, 2015
June 30, 2014
1,020
982
1,212
(1,212)
(112)
78
1,968
1,735
-
19,613
35,142
12,411
34,114
8,700
45
7,265
982
1,212
(1,212)
90,854
(138)
2,143
211,131
20,279
26,126
3,900
7,350
5,447
5
57,968
5,149
126,224
5
479
2,219
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Parent company
Description
Finance costs
Debt charges
Monetary variations and late payment charges on
energy purchased
Monetary variations
Amortization of goodwill
Adjustment of Research and Development and Energy
Efficiency
Finance cost from VNR
Debenture interest and costs
Other finance costs
Finance result
Consolidated
June 30, 2015
June 30, 2014
June 30, 2015
June 30, 2014
-
-
(43,419)
(28,087)
(14,765)
(2,374)
(986)
(986)
(1,353)
(986)
(12,417)
(3,540)
(986)
(10,380)
(24)
(1,010)
(63)
(1,049)
(198)
(19,706)
(3,942)
(110,108)
(26,082)
(15,639)
(11,010)
(84,776)
958
1,170
101,023
41,448
29. Additional information on Celesc D
29.1. Balance sheet
Assets
Current
Cash and cash equivalents
Trade receivables
Inventories
Taxes recoverable
Subsidy - Decree 7,891/2013
Indemnifiable asset - Concession
Financial asset - Portion A
Other credits
Non-current
Trade receivables
Deferred taxes
Taxes recoverable
Judicial deposits
Other credits
Intangible assets
Total assets
June 30, 2015
December 31, 2014
5,781,345
346,459
1,320,123
7,647
136,331
372,848
3,087,772
402,750
107,415
5,007,858
287,715
1,005,378
8,638
49,473
240,635
2,890,451
450,566
75,002
439,291
18,031
252,846
24,388
137,897
2,482
369,293
6,398
130,068
18,595
127,956
2,003
3,647
84,273
6,220,636
5,377,151
Page 78 of 95
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Liabilities
Current
Trade payables
Borrowings
Debentures
Salaries, labor provisions and social charges
Taxes and social contributions
Dividends disclosed and interest on capital
Regulatory charges
Private pension plan
Actuarial liabilities
Other liabilities
June 30, 2015
2,217,550
682,189
175,860
4,799
122,092
318,653
54,665
635,125
10,138
174,633
39,216
December 31, 2014
1,689,738
687,537
322,586
4,120
119,727
131,987
91,109
110,852
15,106
170,828
35,886
Non-current
Borrowings
Debentures
Regulatory charges
Loans - associates, subsidiaries or parent companies (i)
Actuarial liabilities
Provision for contingencies
Other liabilities
2,312,950
418,478
298,950
215,407
113,588
986,624
277,427
2,476
2,036,049
233,879
298,768
182,537
1,032,291
286,099
2,475
Equity
Share capital
Revenue reserves
Carrying value adjustment
Retained earnings/accumulated deficit
1,690,136
1,053,590
673,012
(93,460)
56,994
6,220,636
1,651,364
1,053,590
691,234
(93,460)
5,377,151
(i) ANEEL, through Order 610, of March 6, 2015, approved the draft of the Loan Contract
entered into by Celesc D and Celesc G, with an effective period of up to 24 months, totaling
R$ 110.000. At the Annual Meeting held on February 26, 2015, the Board of Directors approved
the Loan Contract and the transfer of funds from Celesc G to Celesc D. The contract, amounting
to R$ 110,000, was signed by the parties on March 24, 2015 and is effective for two years as
from the date of signature. The financial charges to be included are the Tax on Financial
Transactions (IOF) and the variation of the Special System for Settlement and Custody (SELIC)
rate.
Page 79 of 95
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
29.2. Statement of operations
Description
Net operating revenue (NOR)
Revenue from electric energy service
Portion A - CVA
Construction revenue
Operating costs
Cost of electric energy services
Cost of construction
Gross operating result
Operating expenses
Selling expenses
General and administrative expenses
Other operating expenses
Results from activities
Finance result
Finance income
Finance costs
Profit before IRPJ and CSLL
IRPJ and CSLL
Current
Deferred
Profit (loss) for the period
June 30, 2015
3,389,620
3,152,328
54,940
182,352
June 30, 2014
2,566,893
2,434,070
132,823
(3,195,126)
(3,012,774)
(182,352)
(2,383,108)
(2,250,285)
(132,823)
194,494
183,785
(221,140)
(87,321)
(160,357)
26,538
(257,099)
(74,318)
(138,052)
(44,729)
(26,646)
(73,314)
91,975
204,191
(112,216)
34,483
117,714
(83,231)
65,329
(38,831)
(8,335)
(131,112)
122,777
(30,137)
(30,137)
56,994
(68,968)
29.2.1. Operating income
Description
Gross operating revenue (GOR)
Supply of electric energy (a)
Supply of electric energy (a)
Financial assets and liabilities
Availability of the electric power grid
Spot energy
Other operating income
Donations and subsidies
Construction revenue
June 30, 2015
June 30, 2014
4,570,189
93,487
54,940
214,310
219,110
5,101
241,949
182,352
5,581,438
2,857,608
64,639
109,938
255,373
13,210
198,366
132,823
3,631,957
1,038,248
95,776
441,149
546,911
(679,682)
(56,513)
(260,303)
(1)
(45,091)
Deductions from gross operating revenue
Value-added Tax on Sales and Services (ICMS)
Social Integration Program (PIS)
Social Contribution on Revenues (COFINS)
Services Tax (ISS)
Energy Development Account (CDE)
Page 80 of 95
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Description
Research and Development (P&D)
Energy Efficiency Program (PEE)
Inspection Fee - ANEEL
Other charges
June 30, 2015
14,376
14,376
3,743
37,239
(2,191,818)
June 30, 2014
(11,737)
(11,737)
(1,065,064)
3,389,620
2,566,893
Net operating revenue (NOR)
a) Supply of electric energy
The analysis of gross revenue from electric energy supply, by consumer class, is as follows:
Description
Residential
Industrial
Commercial
Rural
Government
Public lighting
Utilities
Total supply
Electric energy supply
Total
Number of consumers (i)
June 30, 2015
June 30, 2014
2,120,473
101,564
245,478
233,874
21,644
591
2,845
2,726,469
51
2,726,520
2,042,992
98,505
236,037
232,015
21,134
562
2,623
2,633,868
46
2,633,914
June 30, 2015
MWh (i)
June 30, 2014
June 30, 2015
Gross revenue
June 30, 2014
2,799,125
2,182,173
1,931,832
681,532
213,920
289,560
164,534
8,262,676
774,328
9,037,004
2,813,403
2,273,336
1,903,016
691,345
217,039
283,780
162,121
8,344,040
718,570
9,062,610
1,565,602
1,316,604
1,137,271
245,282
121,172
104,967
79,291
4,570,189
93,487
4,663,676
1,033,456
789,986
701,108
151,107
73,562
61,218
47,171
2,857,608
64,639
2,922,247
(i) Information not reviewed
29.2.2. Operating costs and expenses
June 30, 2015
Description
Electric energy purchased for resale
Personnel
Directors and offices
Actuarial expense
Private pension entity
Material
Cost of construction
Third-party services and costs
Depreciation and amortization
Net provisions
Other costs and expenses
Cost of sales
and/or
services
2,729,835
154,434
8,269
6,283
182,352
33,484
70,463
10,006
3,195,126
General and
administrative
expenses
49,800
52,895
3,282
2,208
27,091
15,636
9,445
160,357
Selling
expenses
25,865
1,223
1
28,526
(39,998)
71,704
87,321
Other
expenses/net
income
5,117
210
(8,672)
(23,193)
(26,538)
Total
2,729,835
235,216
52,895
12,774
8,492
182,352
89,311
86,099
(48,670)
67,962
3,416,266
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
June 30, 2014
Description
Electric energy purchased for resale
Personnel
Actuarial expense
Private pension entity
Material
Cost of construction
Third-party services and costs
Depreciation and amortization
Net provisions
Inspection Fee - ANEEL
Other costs and expenses
Costs of assets
and/or
services
2,000,864
131,498
7,290
7,824
132,823
31,205
65,526
6,078
2,551,766
General and
administrative
expenses
40,869
37,431
2,200
2,591
31,135
16,694
7,132
138,052
Selling
expenses
17,549
907
40,065
98
15,699
74,318
Other
expenses/net
income
6,927
223
20,631
2,643
14,305
44,729
Total
2,000,864
196,843
37,431
10,397
10,415
132,823
102,628
82,220
20,729
2,643
43,214
2,640,207
30. Additional information on Celesc G
30.1. Balance sheet
Assets
Current
Cash and cash equivalents
Trade receivables
Inventories
Taxes recoverable
Other receivables
Non-current
Taxes recoverable
Judicial deposits
Related parties
Investments
Property, plant and equipment
Intangible assets
Total assets
June 30, 2015
48,267
21,160
22,205
158
4,621
123
369,425
December 31, 2014
157,067
145,158
11,479
72
301
57
279,721
202
89
114,076
137
89
-
35,162
211,175
8,721
37,397
232,294
9,804
417,692
436,788
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Liabilities
Current
Trade payables
Taxes and social contributions
Regulatory charges
Other liabilities
Proposed dividends
Non-current
Deferred taxes
Provision for contingencies
Regulatory charges
Equity
Share capital
Revenue reserves
Carrying value adjustment
Retained earnings
Total liabilities
June 30, 2015
21,868
2,144
16,201
2,347
1,176
18,424
14,236
2,528
1,660
December 31, 2014
64,946
1,680
35,875
2,356
905
24,130
20,508
15,412
2,528
2,568
377,400
145,532
128,001
67,700
36,167
417,692
351,334
128,000
150,359
72,975
436,788
30.2. Statement of operations
June 30, 2015
June 30, 2014
74,436
98,999
(31,826)
(16,792)
Gross operating result
42,610
82,207
Operating expenses
Selling expenses
General and administrative expenses
Net provisions
Other operating expenses
Equity in results of investees
(6,377)
(375)
(4,462)
(203)
(949)
(388)
(6,609)
(320)
(3,059)
(1,024)
(2,206)
Results from activities
36,233
75,598
Finance income
Finance costs
8,090
8,560
(470)
5,795
6,291
(496)
Profit before IRPJ and CSLL
44,323
81,393
(13,431)
(14,607)
1,176
(26,340)
(30,846)
4,506
30,892
55,053
Description
Net operating revenue (NOR)
Revenue
Operating costs
Cost of electric energy services
Finance result
IRPJ and CSLL
Current
Deferred
Profit (loss) for the period
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
30.2.1. Operating income
Description
Gross operating revenue (GOR)
Supply of electric energy (a) - Industrial
Supply of electric energy (a) - Commercial
Supply of electric energy (a)
Spot energy (a)
June 30, 2015
June 30, 2014
34,717
12,770
33,260
15,723
6,739
15,376
68,895
80,747
106,733
(938)
(4,323)
(440)
(431)
(179)
(6,311)
74,436
(1,108)
(5,109)
(1,517)
(7,734)
98,999
Deductions from operating revenue
Social Integration Program (PIS)
Social Contribution on Revenues (COFINS)
Global Reversion Reserve (RGR)
Inspection Fee - ANEEL
Research and Development (P&D)
Net operating revenue (NOR)
a) Supply of electric energy
Description
Supply of electric energy
Industrial
Trading, services and other
Electric energy supply
Short-term electric energy
(CCEE)
Total
Number of consumers (i)
MWh (i)
Gross revenue
June 30,
2015
June 30,
2014
June 30,
2015
June 30,
2014
June 30,
2015
June 30,
2014
19
5
9
1
36
141,747
32,613
86,778
106,278
45,383
54,141
109,827
34,717
12,770
33,260
15,723
6,739
15,376
68,895
261,138
315,629
80,747
106,733
-
-
24
46
(i) Information not reviewed
30.2.2. Operating costs and expenses
Description
Electric energy purchased for resale
Personnel
Material
Charges for the use of the electric energy
network
Third-party services and costs
Depreciation and amortization
Insurance
Net provisions
Taxes
Rentals
Financial compensation - water resources
Other costs and expenses
June 30, 2015
Costs of assets
and/or services
3,496
2,814
148
General and
administrative
expenses
2,853
215
Selling
expenses
136
-
Other
expenses
-
Total
3,496
5,803
363
1,104
2,139
30,720
(7,347)
(1,248)
31,826
752
362
69
71
109
31
4,462
210
29
375
203
609
340
1,152
1,104
3,101
31,082
69
(7,144)
(1,148)
109
609
371
37,815
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Version: 1
CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Description
Electric energy purchased for resale
Personnel
Material
Third-party services and costs
Depreciation and amortization
Financial compensation - water resources
Net provisions
Inspection fee - ANEEL
Other costs and expenses
June 30, 2014
Costs of
assets
and/or
services
1,048
3,229
83
979
25,538
(14,086)
1
16,792
General and
administrative
expenses
2,200
9
406
356
88
3,059
Selling
expenses
100
190
30
320
Other
expenses
468
184
278
94
1,024
Total
1,048
5,529
92
1,575
25,894
468
(13,902)
278
213
21,195
31. Events after the reporting period
31.1 Celesc D tariff adjustment
ANEEL, through Ratifying Resolution 1,927, of August 4, 2015, ratified the Electric Energy
Tariffs (TEs) and the Tariffs for the Use of the Distribution Systems (TUSDs) of the consumers
serviced by the concession area of Celesc D.
The average impact on consumers from Group A and Group B corresponds to 3.61% and is
composed of (i) the Tariff Adjustment Index (IRT) amounting to 4.81% (economic effect
resulting from the cost restatement of Portions A and B), (ii) the financial component amounting
to 3.04%, and (iii) the effect resulting from the elimination of the financial components included
in the previous claim, totaling -4.25%.
Portion A (non-manageable costs), included in the IRT for 2015-2016, was changed by 3.84% in
relation to the costs, which were increased in the Extraordinary Tariff Review (RTE), as a result
of the financial component.
Portion B (manageable costs) was changed by 0.98% and totaled R$ 1,377,704,791.95. Portion B
was restated by 5.54% as a result of the IGP-M variation in the period (6.87%), less the X Factor
(1.33%), for the purpose of obtaining the productivity gains of the concessionaire.
The tariffs adopted by Celesc D from August 7, 2015 to August 6, 2016 are as follows:
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
Consumption group
Tariff change
High voltage (> 230 kV)
3.59%
Low voltage (< 230 kV)
3.63%
Average tariff effect - high voltage + low voltage
3.61%
Source: ANEEL
31.2 Court decision about the Physical Guarantee Adjustment Factor (GSF)
Celesc G filed a lawsuit against ANEEL, requesting that ANEEL (i) establish that the Electric
Energy Trade Chamber (CCEE) reviews the Energy Reallocation Mechanism (MRE) calculation
method and (ii) ensure that Celesc G is provided with an electric energy amount that is equivalent
to the physical guarantee - GSF.
In a plea for legal protection, Celesc G requested that:
i) ANEEL determine that CCEE allocates to Celesc G a monthly amount of electric energy
corresponding to 100% of the GSF;
ii) in the event item i) is not accepted, CCEE should ensure the provision of electric energy
amounting to 95% of the GSF to Celesc G;
iii) or, secondarily, an amount of electric energy corresponding to what the total MRE amount
would be if there were no physical guarantee.
The Company also required that items (i), (ii) or (iii) above be ensured, in advance, up to the
issue of the final decision on the lawsuit.
In short, Celesc G aims at having the costs that were incurred by the hydroelectric generating
plants due to the use of the Generation Scaling Factor (GSF) eliminated, since the
underachievement of the hydroelectric generation, given the current scenario, results from both
structural and contextual reasons.
The GSF index corresponds to the ratio between the sum of the total amount of electric energy
produced by the hydroelectric plants covered by the Energy Reallocation Mechanism (MRE) and
the sum of the physical guarantees of the plants. Since the annual GSF of the MRE always
exceeded 100% from 2005 to 2012, it did not encumber the hydroelectric generators. As from
2013 onwards, this scenario started to change and became severely intense in 2014, when the
index remained under 100% during the entire year. In 2015, the recorded GSF in January,
February, March and April was 80.6%, 78.6%, 78.3% and 82.5%, respectively. The fact that the
GSF remained under 100% caused the generating plants to adjust their physical guarantees in
accordance with the MRE, which does not meet the amount established in the electric energytrading contracts and, therefore, leads the generating plants to purchase the deficient electric
energy at free market prices.
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Notes to the quarterly information
(All amounts in thousands of reais unless otherwise stated)
On August 5, 2015, the 5th Federal Court of the Federal Regional Court of the First Region
issued a decision that approved the claimed injunction request, thereby partially granting the legal
protection and establishing that ANEEL and CCEE should refrain from adjusting the MRE, in the
event that the total amount generated by the MRE is lower than the related physical guarantee, so
as to limit the effects of the GSF adjustment factor to no more than 5% of the total physical
guarantee of the claimants.
The court also decided that the installment maturing on July 5, 2015 and others should not be
accounted for or collected, through the Auxiliary Calculation Mechanism, up to the date when a
further decision is issued by the court, under penalty of daily fine of R$ 50.
*
*
*
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Quarteerly information (ITR) - 6/30/20
015 - CENTRAIS ELÉTRICAS D
DE SANTA CATA
ARINA S.A.
Version:: 1
CEN
NTRAIS E
ELÉTRICA
AS DE SAN
NTA CATA
ARINA S.A.
Othe
er informatiion conside
ered releva
ant by the C
Company
1. Fin
nancial indiccators
1.1. E
Equity
Marke
et value per sh
hare (R$ per sh
hare)
Book v
value of the sh
hare (R$ per
share)
39,82
39
9,82
39,82
39,82
36,24
76
60,7
62,20
62,37
18,98
15,54
55,04
14,90
14,80
14,47
56,01
2Q14 3Q14 4Q
Q14 1Q1
15 2Q15
2Q14 3Q14 4Q14
4 1Q15 Sé
érie1
Série2
Liquidity
1.2. L
Current lliquidity
al liquidity
Genera
3,13
6
2,76
2,58
2,60
1,42
1,44
1,45
1,45
1
1,54
1,32
2Q14 3
3Q14 4Q14
4 1Q15 2
2Q15
Q14 4Q14 1Q15 2Q
Q15
2Q14 3Q
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Other information considered relevant by the Company
1.3. Indebtedness
Debt to asset ratio (%)
Debt to equity ratio (%)
65,08
186,36
176,77
63,87
173,24
63,40
63,08
170,86
63,18
2Q14 3Q14 4Q14 1Q15 2Q15
171,59
2Q14 3Q14 4Q14 1Q15 2Q15
1.4. Profitability
Property, plant and equipment profitability
208,18
Equity profitability
26,01
3,14
1,77
2,38
1,51 2Q14 3Q14 4Q14 1Q15 2Q15
30,61
18,16
25,08
16,96 2Q14 3Q14 4Q14 1Q15 2Q15
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CENTRAIS ELÉTRICAS DE SANTA CATARINA S.A.
Other information considered relevant by the Company
Asset profitability
Net operating margin
7,60%
22,44%
4,74%
2,63%
3,07%
2,17%
2Q14 3Q14 4Q14 1Q15 2Q15
1,11%
0,84%
0,64%
0,52%
2Q14 3Q14 4Q14 1Q15 2Q15
1.5. EBITDA
EBITDA (% on ROL)
EBITDA (R$ million)
32,91%
709,39 130,34 136,77 9,55%
9,59%
5,25%
95,23 21,86 2Q14 3Q14 4Q14 1Q15 2Q15
1,33%
2Q14 3Q14 4Q14 1Q15 2Q15
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015 - CENTRAIS ELÉTRICAS D
DE SANTA CATA
ARINA S.A.
Version:: 1
CEN
NTRAIS E
ELÉTRICA
AS DE SAN
NTA CATA
ARINA S.A.
Othe
er informatiion conside
ered releva
ant by the C
Company
1.6. E
Efficiency
yee
MWh/employ
Consumers/em
mployee
837
830
1.75
54
1.333
1.255
1.357
1.431
814
2
2Q14 3Q14
4 4Q14 1Q15 2Q
Q15
817
815
2Q14 3Q
Q14 4Q14 1Q15 2
2Q15
Interruption D
Duration by Co
onsumer (DEC)) ((weighted hours)
Interruption Frequency by Cons
sumer
(FEC) - ((number)
4,44
3,89
3,04
2,83
3,39
2,,83
2,52
1,99
2Q1
14 3Q14 4Q14 1Q15 2
2Q15
Average
e interruption restoration tim
me (minute
es)
2
2,21
1,87
2Q14 3Q
Q14 4Q14 1Q15 2
2Q15
2Q14 3Q14 AVERAGE TARIFF A
R$/MWh
4Q14 1Q15 2Q15
265
2
209
260
400
222
50
35
1
176
300
50
25
200
50
15
100
5
50
-
2Q
Q14 3Q14 4Q14 1Q15 2Q1
15
Residential
IIndustrial
Commeercial
Rural
Other
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Version: 1
Reports/Report on review of quarterly information - without exceptions
REPORT ON REVIEW OF QUARTERLY INFORMATION
To the Board of Directors and Stockholders
Centrais Elétricas de Santa Catarina S.A.
Florianópolis - SC
Introduction
We have reviewed the accompanying parent company and consolidated interim accounting
information of Centrais Elétricas de Santa Catarina S.A. ("Company"), included in the Quarterly
Information Form (ITR) for the quarter ended June 30, 2015, comprising the balance sheet as at
that date and the statements of operations and comprehensive income (loss) for the quarter and
six-month period then ended, and the statements of changes in equity and cash flows for the sixmonth period then ended, and the explanatory notes.
Management is responsible for the preparation of the parent company and consolidated interim
accounting information in accordance with the accounting standard CPC 21 (R1), "Interim
Financial Reporting", issued by the Brazilian Accounting Pronouncements Committee (CPC), and
the 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.
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Reports/Report on review of quarterly information - without exceptions
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying parent company and 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 (R1) 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 as a going concern
Without qualifying our opinion, we draw attention to Note 1 to this quarterly information, which
describes that the Company held the concession to carry out its distributing activities for 16 years,
that is, up to July 7, 2015. The Company filed a request for extension of this concession period and,
on October 15, 2012, ratified this request. In January 2014, through Circular Letter 1/2014, the
National Electric Energy Agency (ANEEL) informed the Company that it is analyzing the extension
request, and that the Concession Grantor is the ultimate responsible for the approval. This situation
raises substantial doubts about the ability of the Company to continue as a going concern,
considering that the extension of the concession contract depends on the final decision of the
Concession Grantor. The information included in this quarterly information was prepared based on
the assumption that the Company will continue as a going concern, which considers the realization
of assets and payment of liabilities and commitments during the normal course of business.
Other matters
Statements of value added
We have also reviewed the parent company and consolidated statements of value added for the sixmonth period ended June 30, 2015. These statements are the responsibility of the Company's
management, 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 interim accounting information
taken as a whole.
Joinville, August 13, 2015
DELOITTE TOUCHE TOHMATSU
Auditores Independentes
CRC nº 2 SP-011.609/O-8 F-SC
Fernando de Souza Leite
Accountant
CRC nº 1 PR-050.422/O-3
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Reports/officers' statement on the quarterly information
OFFICERS' STATEMENT ON THE FINANCIAL STATEMENTS
The officers of Centrais Elétricas de Santa Catarina S.A. declare that they have reviewed and
agreed with all of the information presented in the Company's parent company and consolidated
quarterly information.
_____________________________
Cleverson Siewert
Chief Executive Officer
______________________________
Antônio José Linhares
Regulation Matters and
Legal Matters Officer
__________________________
Eduardo Cesconeto de Souza
Commercial Officer
______________________________
Enio Andrade Branco
Generation, Transmission and
New Business Officer
_____________________________
James Alberto Giacomazzi
Distribution Officer
____________________________
Nelson Marcelo Santiago
Corporate Management
Officer
_____________________________
Rubens José Della Volpe
Planning and Internal
Control Officer
____________________________
José Carlos Oneda
Financial and Investor
Relations Officer
________________________________
José Braulino Stähelin
Accountant - CRC/SC 18.996/O-8
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Version: 1
Reports/officers' statement on the report on review of quarterly information
OFFICERS' STATEMENT ON THE REPORT ON REVIEW OF QUARTERLY
INFORMATION
The officers of Centrais Elétricas de Santa Catarina S.A. declare that they have reviewed and
agreed with the conclusion of the Company's independent auditors, Deloitte Touche Tohmatsu
Auditores Independentes, on the Company's parent company and consolidated quarterly
information.
_____________________________
Cleverson Siewert
Chief Executive Officer
______________________________
Antônio José Linhares
Regulation Matters and
Legal Matters Officer
__________________________
Eduardo Cesconeto de Souza
Commercial Officer
______________________________
Enio Andrade Branco
Generation, Transmission and
New Business Officer
_____________________________
James Alberto Giacomazzi
Distribution Officer
____________________________
Nelson Marcelo Santiago
Corporate Management
Officer
_____________________________
Rubens José Della Volpe
Planning and Internal
Control Officer
____________________________
José Carlos Oneda
Financial and Investor
Relations Officer
________________________________
José Braulino Stähelin
Accountant - CRC/SC 18.996/O-8
Page 95 of 95