6-K 1 f6k_111402.txt REPORT OF FOREIGN ISSUER FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of November 2002 ESPIRITO SANTO CENTRAIS ELETRICAS S.A. - ESCELSA Rua Sete de Setembro, 362 Vitoria, Espirito Santo, Brazil 29015-000 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F --- Indicate by check mark whether the registrant by furnishing information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X --- --- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- . ---------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this current report to be signed on its behalf by the undersigned, thereunto duly authorized. ESPIRITO SANTO CENTRAIS ELETRICAS S.A. - ESCELSA (Registrant) Date: November 15, 2002 By: /s/ Sergio Pereira Pires -------------------------------- Name: Sergio Pereira Pires Title: Chief Financial Officer EXHIBIT INDEX ------------- 1. Condensed Consolidated Financial Information of the Company at September 30, 2002

--------------------------------------------------------------------------------------------------------------------------- ESCELSA' s NUMBERS --------------------------------------------------------------------------------------------------------------------------- PARENT COMPANY CONSOLIDATED --------------------------------------------------------------- First Half --------------------------------------------------------------- 2002 2001 2002 2001 --------------------------------------------------------------------------------------------------------------------------- FINANCIAL INFORMATION (thousands of reais) Gross operating revenues 521,267 489,617 776,263 750,654 Net operating revenues 371,345 351,582 566,826 553,817 Operating income 24,900 10,764 28,294 31,714 Loss for the period (174,368) (92,225) (174,368) (92,225) EBITDA 53,243 38,252 88,206 84,806 Adjusted EBITDA (2) 114,207 113,129 180,361 171,726 Total assets 2,633,001 2,513,403 3,561,715 2,941,420 Shareholders' equity 559,437 683,693 Number of shares 4,550,833 4,550,833 Book value per thousand shares (in Reais) 122.93 150,23 Common stock price per thousand shares at half-year end (in Reais) 72.89 94.97 Market capitalization 331,710 432,193 INDICATORS Operating margin (%) 6.71 3.06 4.99 5.73 EBITDA margin (%) 14.34 10.88 15.56 15.31 Energy losses (%) (1) 11.71 9.59 DEC - Equivalent outage duration per customer (hours)(*) (1) 14.99 14.57 FEC - Equivalent outage frequency per customer (times)(*) (1) 11.23 12.17 TMA - Average service response time (minutes)(*) (1) 109 108 Number of customers per employee(*) 678 603 634 576 MARKET Maximum demand - MWh/h(*) 1,077.5 1,138.1 Energy sales - MWh(*) 3,058,198 3,456,347 4,409,683 4,943,438 Number of customers(*) 939,961 878,574 1,528,457 1,429,093 Average tariff to final customers - R$/MWh(*) (3) 132.97 108.41 Average cost of energy bought - R$/MWh(*) (3) 78.25 66.79 HUMAN RESOURCES Number of employees(*) 1,386 1,456 2,410 2,515 Number of trainees(*) 87 85 108 108 Personnel expenses (thousands of reais) 29,699 31,595 54,269 54,123 Notes: (1) Period of 12 months (2) Ebitda + Financial revenues + Non-operating income (losses) (3) Period of 6 months ---------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------- MWh ---------------------------------------------------------------------------------------------------------------------------- PARENT COMPANY CONSOLIDATED ----------------------------------------------------------------------------------------------- First Half First Half ---------------------------- % Change ----------------------------- % Change 2002 2001 2002 2001 ---------------------------------------------------------------------------------------------------------------------------- Retail: Residential 574,031 733,424 (21.7) 1,001,615 1,240,230 (19.2) Industrial 1,533,620 1,651,913 (7.2) 1,857,634 1,967,589 (5.6) Commercial 421,911 462,154 (8.7) 685,516 761,631 (10.0) Rural 150,010 199,753 (24.9) 285,983 337,065 (15.2) Other 227,535 253,865 (10.4) 415,183 469,322 (11.5) ----------------------------------------------------------------------------------------------------------------------------

2,907,107 3,301,109 (11.9) 4,245,931 4,775,837 (11.1) Wholesale 151,091 155,238 (2.7) 163,752 167,601 (2.3) ---------------------------------------------------------------------------------------------------------------------------- TOTAL 3,058,198 3,456,347 (11.5) 4,409,683 4,943,438 (10.8) ----------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------- PARENT COMPANY CONSOLIDATED ----------------------------------------------------------------------------------------------- June 30, June 30, ---------------------------- % Change ----------------------------- % Change 2002 2001 2002 2001 ---------------------------------------------------------------------------------------------------------------------------- Retail: Residential 745,613 700,694 6.4 1,229,147 1,156,117 6.3 Industrial 11,035 10,581 4.3 15,727 15,214 3.4 Commercial 83,298 76,698 8.6 134,904 124,842 8.1 Rural 91,057 82,057 11.0 133,449 118,381 12.7 Other 8,956 8,542 4.8 15,225 14,534 4.8 ---------------------------------------------------------------------------------------------------------------------------- 939,959 878,572 7.0 1,528,452 1,429,088 7.0 Wholesale 2 2 - 5 5 - ---------------------------------------------------------------------------------------------------------------------------- Total (*) 939,961 878,574 7.0 1,528,457 1,429,093 7.0 ----------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------- R$/MWh ---------------------------------------------------------------------------------- PARENT COMPANY ---------------------------------------------------------------------------------- JUN-2002 JUN-2001 % Change 1H 2002 1H 2001 % Change ---------------------------------------------------------------------------------- Retail: Residential 206.35 181.59 13.6 216.67 181.38 19.5 Industrial 91.87 78.10 17.6 91.97 72.89 26.5 ---------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------- Commercial 172.85 135.56 27.5 171.08 134.62 27.1 Rural 128.97 106.16 21.5 128.88 103.80 24.2 Other 129.74 103.44 25.4 129.69 102.05 27.1 --------------------------------------------------------------------------------------------------------------- 128.92 110.55 16.6 132.97 108.41 22.7 Wholesale 69.24 60.99 13.5 67.47 62.45 8.0 --------------------------------------------------------------------------------------------------------------- Average Tariff (*) 126.09 109.75 14.9 129.73 108.03 20.1 ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------- PARENT COMPANY CONSOLIDATED --------------------------------------------------- First Half --------------------------------------------------- 2002 2001 2002 2001 --------------------------------------------------- From FURNAS and TRACTEBEL Expenses - thousands of reais 115,867 107,412 161,731 150,561 Volume - MWh(*) 1,777,692 2,317,266 2,807,770 3,375,589 Average cost - R$/MWh(*) 65.18 46.35 57.60 44.60 ------------------------------------------------------------------------------------- WHEELING From ITAIPU Expenses - thousands of reais 2,931 2,646 4,135 3,721 Average cost - R$/MWh(*) 3.39 3.07 3.40 3.08 ------------------------------------------------------------------------------------- WHEELING-OTHER Expenses - thousands of reais 27,535 34,608 45,320 54,807 Average cost - R$/MWh(*) 15.49 14.93 16.14 16.24 ------------------------------------------------------------------------------------- From ITAIPU Expenses - thousands of reais 74,768 66,299 106,000 93,163 Volume - MWh(*) 864,033 860,834 1,215,985 1,207,327 Average cost - R$/MWh(*) 86.53 77.02 87.17 77.16 ------------------------------------------------------------------------------------- From OTHER Expenses - thousands of reais 9,943 14,978 16,571 22,611 Volume - MWh(*) 228,082 204,639 287,453 265,510 Average cost - R$/MWh(*) 43.59 73.19 57.65 85.16 ------------------------------------------------------------------------------------- SECTOR AGREEMENT AND PARCEL 'A' Expenses - thousands of reais (6,481) - (12,281) - ------------------------------------------------------------------------------------- TOTAL Expenses - thousands of reais 224,563 225,943 321,476 324,863 Volume - MWh(*) 2,869,807 3,382,739 4,311,208 4,848,426 Average cost - R$/MWh(*) 78.25 66.79 74.57 67.00 -------------------------------------------------------------------------------------

PARENT COMPANY CONSOLIDATED -------------------------------------------- June 30, 2002 -------------------------------------------- thousands US$ thousands US$ of reais thousand of reais thousand -------------------------------------------- Investments in Reais: Cash and bank 7,368 - 8,262 - Banking Certificates of Deposits - - 13 - Other 131 - 310 - -------------------------------------------- Total real denominated investments 7,499 - 8,585 - ============================================ Investments in Dollars: Currency Exchange Securities-NTN's and NBC's 214,370 75,366 214,370 75,366 -------------------------------------------- Total Dollar denominated investments 214,370 75,366 214,370 75,366 ============================================ Total cash and equivalents 221,869 75,366 222,955 75,366 ============================================ US dollar = 2,8444 Real

PARENT COMPANY CONSOLIDATED --------------------------------------------------------- Jun-02 Mar-02 Jun-02 Mar-02 --------------------------------------------------------- ASSETS CURRENT ASSETS Cash and banks 7,368 8,060 8,262 10,482 Marketable securities 214,501 207,672 214,693 207,931 Accounts receivable 240,925 233,685 380,363 384,981 Other accounts receivable 19,278 11,517 34,313 21,115 Tax credits 43,451 42,550 57,827 56,255 Allowance for doubtful accounts (19,998) (19,086) (30,124) (29,921) Material and supplies 3,735 4,031 7,112 6,989 Escrow deposits 39,382 39,382 39,382 39,382 Other credits 17,515 8,531 29,993 14,365 Prepaid expenses - CVA 26,843 5,226 31,730 10,643 Prepaid expenses - other 242 1,186 460 1,197 --------------------------------------------------------- 593,242 542,754 774,011 723,419 --------------------------------------------------------- LONG-TERM ASSETS Accounts receivable 186,478 210,452 268,576 303,762 Special tariff situation 46,609 46,596 71,826 71,778 Affiliates and subsidiaries 1,362 901 57,561 55,479 Funding costs 3,043 3,235 3,043 3,235 Escrow deposits 66,441 63,651 90,006 84,361 Tax credits 170,130 97,356 286,930 197,630 Other 3,262 3,372 14,804 12,355 Prepaid expenses 50,200 58,606 91,412 94,592

527,525 484,169 884,158 823,192 --------------------------------------------------------- PERMANENT ASSETS Investments 749,836 724,639 379,688 382,230 Property, plant and equipment, net 762,398 767,420 1,523,779 1,508,481 Deferred charges - - 79 79 --------------------------------------------------------- 1,512,234 1,492,059 1,903,546 1,890,790 --------------------------------------------------------- TOTAL ASSETS 2,633,001 2,518,982 3,561,715 3,437,401 =========================================================

PARENT COMPANY CONSOLIDATED --------------------------------------------------------- Jun-02 Mar-02 Jun-02 Mar-02 --------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Suppliers 111,164 119,824 157,126 165,268 Payroll 942 1,159 2,457 1,903 Accrued interest and fees 57,773 22,553 63,548 32,199 Consumers charges payable 5,938 6,818 9,621 10,609 Accrued taxes and social contributions 33,220 32,859 49,146 49,081 Dividends 21 21 105 4,048 Loans and financing 86,399 70,971 343,153 316,716 Post retirement benefits 2,420 2,420 2,420 2,420 Accrued obligations 9,163 6,549 17,638 13,138 Provision for contingencies 39,382 39,382 39,382 39,382 Variation of parcel A items 29,051 1,702 29,438 1,702 Other 12,360 11,035 14,736 12,462 --------------------------------------------------------- 387,833 315,293 728,770 648,928 --------------------------------------------------------- LONG-TERM LIABILITIES Suppliers 68,596 61,239 95,329 84,600 Deferred income tax 8,875 9,491 8,875 9,491 Special tariff situation 26,312 26,560 40,166 40,548 Accrued interest and fees - - 2,085 1,467 Loans and financing 1,392,854 1,171,032 1,715,917 1,488,642

Post retirement benefits 28,032 28,032 28,032 28,032 Provision for contingencies 117,964 114,148 148,785 142,612 Variation of parcel A items 1,833 1,216 3,769 1,216 Other 41,265 45,190 45,246 48,613 --------------------------------------------------------- 1,685,731 1,456,908 2,088,204 1,845,221 --------------------------------------------------------- 1,685,731 1,456,908 2,088,204 1,845,221 --------------------------------------------------------- MINORITY INTEREST - - 185,304 196,471 --------------------------------------------------------- SHAREHOLDERS' EQUITY Capital stock 153,947 153,947 153,947 153,947 Capital reserves 576,471 575,292 576,471 575,292 Income reserves (174,368) 14,155 (174,368) 14,155 --------------------------------------------------------- 556,050 743,394 556,050 743,394 --------------------------------------------------------- Credits for capital increase 3,387 3,387 3,387 3,387 --------------------------------------------------------- 559,437 746,781 559,437 746,781 --------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDER'S' EQUITY 2,633,001 2,518,982 3,561,715 3,437,401 =========================================================

PARENT COMPANY CONSOLIDATED ------------------------------------------------------ Six months ended June 30, ------------------------------------------------------ 2002 2001 2002 2001 ------------------------------------------------------ OPERATING REVENUES Electric power sales to final customers 480,787 472,501 745,313 712,049 Electric power sales to distributors 29,967 13,059 11,599 26,113 Other revenues 10,513 4,057 19,351 12,492 ------------------------------------------------------ 521,267 489,617 776,263 750,654 ------------------------------------------------------ Deductions from operating revenues Global reserve for reversion quota (RGR) (8,136) (8,291) (13,842) (13,915) State VAT (ICMS) (122,714) (111,871) (167,965) (155,301) PIS and COFINS (19,033) (17,871) (27,328) (27,432) Other (39) (2) (302) (189) ------------------------------------------------------ (149,922) (138,035) (209,437) (196,837) ------------------------------------------------------ NET OPERATING REVENUES 371,345 351,582 566,826 553,817 ------------------------------------------------------ OPERATING EXPENSES Personnel (29,699) (31,595) (54,269) (54,123) Material (3,210) (3,768) (7,664) (7,974) Services from third parties (15,103) (14,050) (29,341) (25,430) Financial compensation for use of hydroelectric resources (1,388) (799) (1,543) (993) Electric power purchased for resale (194,172) (188,689) (272,728) (266,335) Transport of electricity capacity (30,391) (37,254) (48,748) (58,528) Quota for fuel consumption - CCC (26,464) (26,587) (38,167) (38,018) Depreciation and amortization (28,343) (27,488) (59,912) (53,092) Provision for contingencies (1,256) - (2,029) 1,210 Other (16,419) (10,588) (24,131) (18,820) ------------------------------------------------------ (346,445) (340,818) (538,532) (522,103) ------------------------------------------------------ INCOME FROM OPERATIONS 24,900 10,764 28,294 31,714 ------------------------------------------------------ EQUITY IN SUBSIDIARIES (14,452) (5,687) - - ------------------------------------------------------ FINANCIAL REVENUES Income from temporary cash investments 33,653 68,199 39,822 68,322

Increase in overdue collections 4,770 4,074 7,224 6,309 Hedge 7,335 - 17,970 745 Selic-regulatory assets 13,766 - 23,131 - Other 4,496 2,964 9,544 14,108 ------------------------------------------------------ 64,020 75,237 97,691 89,484 ------------------------------------------------------ FINANCIAL EXPENSES Monetary variation - electricity purchase (3,874) (3,107) (5,002) (4,294) Monetary and exchange variation on loans and financing (235,572) (152,444) (266,797) (169,777) Interest on loans and financing (74,042) (52,589) (100,248) (70,250) Other (9,619) (6,206) (12,863) (9,685) ------------------------------------------------------ (323,107) (214,346) (384,910) (254,006) ------------------------------------------------------ FINANCIAL RESULTS (259,087) (139,109) (287,219) (164,522) ------------------------------------------------------ OPERATING PROFIT (LOSS) (248,639) (134,032) (258,925) (132,808) ------------------------------------------------------ NON-OPERATING REVENUES 263 2,433 512 2,886 NON-OPERATING EXPENSES (3,319) (2,793) (5,303) (5,450) ------------------------------------------------------ NON-OPERATING INCOME (LOSS), NET (3,056) (360) (4,791) (2,564) ------------------------------------------------------ INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST (251,695) (134,392) (263,716) (135,372) ------------------------------------------------------ Social contribution and income tax 77,327 42,167 84,675 42,832 ------------------------------------------------------ INCOME (LOSS) BEFORE MINORITY INTEREST (174,368) (92,225) (179,041) (92,540) ------------------------------------------------------ MINORITY INTEREST - - 4,673 315 ------------------------------------------------------ NET INCOME (LOSS) FOR THE PERIOD (174,368) (92,225) (174,368) (92,225) ====================================================== Income (loss) per share - R$ (38.31) (20.26) - - ------------------------------------------------------

PARENT COMPANY CONSOLIDATED ------------------------------------------------------ Six months ended June 30, ------------------------------------------------------ 2002 2001 2002 2001 ------------------------------------------------------ From operations Net income (loss) for the period (174,368) (92,225) (174,368) (92,225) Adjustments to reconcile net income (loss) to cash provided by operating activities: Long-term monetary and exchange variation 235,572 152,444 254,153 164,999 Equity in subsidiaries 14,452 5,687 - - Depreciation and amortization 28,343 27,488 59,912 53,092 Disposal of property, plant and equipment 2,330 2,074 5,070 4,125 Provision for contingencies 5,764 14,698 6,797 13,488 Rationing program - regulatory assets (60) - (12,976) - Minority share in profit - - (4,673) (315) Obligations adjustments 4,541 - 4,541 - Tax credits (75,712) (42,168) (83,130) (42,928) Remuneration of construction work in progress and other - - (745) (382) ------------------------------------------------------ 40,862 67,998 54,581 99,854 ------------------------------------------------------ Changes in current assets and liabilities Accounts receivable (36,339) 7,854 (35,199) (5,265) Other accounts receivable 6,498 (3,056) (1,901) (7,616) Prepaid expenses (20,960) (92) (23,580) (92) Other credits (9,971) (238) (16,703) 1,422 Suppliers (25,123) 40,815 (21,762) 48,311 Accrued taxes and social contributions 4,670 2,056 972 900 Accrued obligations (3,194) (4,077) (2,938) (3,928) Consumers charges payable (2,443) (1,229) (3,619) (1,810) Variation of Parcel A itens 28,825 - 29,212 -

Other 1,201 (4,782) 1,721 (5,778) ------------------------------------------------------ (56,836) 37,251 (73,797) 26,144 ------------------------------------------------------ Change in non-current assets and liabilities Accounts receivable 3,565 - 3,565 - Escrow deposits (5,346) (7,263) (8,575) (10,102) Special tariff situation 2,407 - 2,856 - Affiliates and subsidiaries 891 (2,356) (41,502) (2,356) Prepaid expenses 2,409 - (5,410) - Suppliers 7,357 - 7,357 - Other 5,929 8,436 7,313 5,602 ------------------------------------------------------ 17,212 1,183 (34,396) (6,856) ------------------------------------------------------ Net cash provided by (used in) operation activities 1,238 104,066 (53,612) 119,142 ------------------------------------------------------ Investing activities Additions to property, plant and equipment (22,828) (27,794) (87,240) (77,286) Additions to investments (66,996) 3,113 (102) 1,685 Obligations related to the concession 1,868 2,856 1,950 3,820 ------------------------------------------------------ Net cash used in investing activities (87,956) (21,825) (85,392) (71,781) ------------------------------------------------------ Financing activities Loans and financing 39,767 (11,215) 60,367 30,541 Accrued interest and fees 11,055 7,180 11,939 8,143 Dividends - (13,239) (4,531) (14,597) Affiliates and subsidiaries - - 34,687 (3,323) ------------------------------------------------------ Net cash provided by (used in) financing activities 50,822 (17,274) 102,462 20,764 ------------------------------------------------------ Net increase (decrease) in cash and equivalents (35,896) 64,967 (36,542) 68,125 ------------------------------------------------------ Cash and cash equivalents at the beginning of the year 257,765 272,770 259,497 277,791 Cash and cash equivalents at the end of the year 221,869 337,737 222,955 345,916 ------------------------------------------------------ (35,896) 64,967 (36,542) 68,125 ------------------------------------------------------

PARENT COMPANY CONSOLIDATED -------------------- -------------------- Jun-02 Mar-02 Jun-02 Mar-02 ------- ------- ------- ------- Interbank Deposits - CDB - - 13 10 U.S. Dollar-linked Treasury Notes - NTN and NBC-E 214,370 204,051 214,370 204,051 Other 131 3,621 310 3,870 ------- ------- ------- ------- -------------------------------------------------------------------------------- 16 [ESCELSA LOGO] QUARTERLY FINANCIAL STATEMENTS AS OF JUNE 30, 2002 -------------------------------------------------------------------------------- TOTAL 214,501 207,672 214,693 207,931 ======= ======= ======= =======

PARENT COMPANY ------------------------------------------------------- Past-due Past-due Total up to 90 Over 90 ------------------- Current days days Jun-02 Mar-02 ------- ------- ------- ------- ------- CURRENT ASSETS FINAL CUSTOMERS Residential 13,890 18,276 1,304 33,470 33,661 Industrial 32,403 3,335 3,010 38,748 35,350 Commercial, services and other activities 10,205 5,718 1,133 17,056 17,899 Rural 3,856 1,333 182 5,371 4,450 Public authority: Federal 438 658 637 1,733 1,239 State 656 1,619 7,657 9,932 9,473 Municipal 897 666 1,092 2,655 2,317 Public lighting 2,540 1,781 1,991 6,312 5,140 Public service 1,736 104 94 1,934 1,920 Unbilled revenue 17,507 - - 17,507 20,131 Regulatory asset - recoverable losses 44,941 - - 44,941 59,368 Other credits 17,516 - - 17,516 10,362 ------- ------- ------- ------- ------- 146,585 33,490 17,100 197,175 201,310 ------- ------- ------- ------- ------- WHOLESALE Distributors 4,332 - - 4,332 5,470 Spot market 39,245 - 174 39,418 26,906 ------- ------- ------- ------- ------- 43,577 - 174 43,750 32,375 ------- ------- ------- ------- ------- TOTAL 190,162 33,490 17,274 240,925 233,685 ======= ======= ======= ======= ======= LONG-TERM ASSETS FINAL CUSTOMERS Regulatory asset Recoverable losses 77,193 - - 77,193 111,446 Free energy 71,934 - - 71,934 64,219 Other credits 22,182 - 15,169 37,351 34,787 ------- ------- ------- ------- ------- 171,309 - 15,169 186,478 210,452 ======= ======= ======= ======= =======

CONSOLIDATED ------------------------------------------------------- Past-due Past-due Total Current up to 90 Over 90 days Jun-02 Mar-02 ------------------------------------------------------------- ------- ------- ------- ------- ------------------------------------------------------------------------------------------------------------- 17 [ESCELSA LOGO] QUARTERLY FINANCIAL STATEMENTS AS OF JUNE 30, 2002 ------------------------------------------------------------------------------------------------------------------- ------- ------- ------- ------- days CURRENT ASSETS FINAL CUSTOMERS Residential 21,420 29,399 1,641 52,460 51,765 Industrial 38,931 5,543 3,165 47,639 42,722 Commercial, services and other activities 13,704 10,848 4,452 29,004 29,108 Rural 4,171 3,613 330 8,114 6,944 Public Authority: Federal 897 1,241 770 2,908 2,378 State 1,600 2,593 7,706 11,899 10,743 Municipal 1,816 2,143 2,232 6,191 4,564 Public lighting 4,575 4,894 6,261 15,730 11,399 Public service 3,039 110 121 3,270 3,137 Unbilled revenue 33,495 - - 33,495 34,910 Regulatory asset- recoverable losses 65,462 - - 65,462 83,019 Other credits 31,339 721 147 32,207 21,958 ------- ------- ------- ------- ------- 220,449 61,105 26,825 308,379 302,647 ======= ====== ====== ======= ======= WHOLESALE Distributors 4,793 - - 4,793 5,783 Spot market 67,018 - 173 67,191 76,551 ------- ------- ------- ------- ------- 71,811 - 173 71,984 82,334 ------- ------- ------- ------- ------- 292,260 61,105 26,998 380,363 384,981 ======= ======= ======= ======= ======= LONG-TERM ASSETS FINAL CUSTOMERS Regulatory asset Recoverable losses 131,251 - - 131,251 180,253 Free energy 99,974 - - 99,974 88,722 Other credits 22,182 - 15,169 37,351 34,787 ------- ------- ------- ------- ------- 253,407 - 15,169 268,576 303,762 ======= ======= ======= ======= =======

PARENT COMPANY CONSOLIDATED ------------------------------------------------- CURRENT LONG TERM CURRENT LONG TERM ------------------------------------------------- Balance as of 12/31/2001 54,928 157,692 76,485 226,171 Transfer to current assets 14,759 (14,759) 21,359 (21,359) Recovery via extraordinary tariffs (10,319) - (14,825) - Losses of margin - 32,732 64,163 ------- ------- ------- ------- Balance as of 03/31/2002 59,368 175,665 83,019 268,975 ======= ======= ======= ======= Transfer to current assets (2,276) 2,276 349 349 Recovery via extraordinary tariffs (12,151) - (17,906) - Losses of margin - 36,359 (48,654) -Free Energy - 7,715 11,253 ------- ------- ------- ------- Balance as of 06/31/2002 44,941 149,127 65,462 231,225 ======= ======= ======= =======

PARENT COMPANY CONSOLIDATED ---------------------------------------------- Jun-02 Mar-02 Jun-02 Mar-02 ------- ------- ------- ------- ASSETS Current assets (customers and wholesale): Bonus balance (invoiced (-) received) (290) (5,553) (337) (7,794) Surtax - accounts receivable 1,205 1,940 1,930 3,106 Surtax installment 607 582 1,003 943 ------- ------- ------- ------- 1,522 (3,031) 2,596 3,745 ------- ------- ------- ------- Long term assets: Invoiced bonus 40,270 40,247 61,453 61,399 Costs incurred by Company to be reimbursed 6,339 6,349 10,373 10,379 ------- ------- ------- ------- 46,609 46,596 71,826 71,778 ------- ------- ------- ------- TOTAL 48,131 43,565 74,422 68,033 ======= ======= ======= ======= LIABILITIES Long term liabilities: Surtaxes charged 12,047 12,369 19,535 20,034 (-) ICMS tax on surcharges (2,693) (2,763) (4,179) (4,290) (-) 2% to cover costs (94) (98) (162) (168) Resources received 17,052 17,052 24,972 24,972 ------- ------- ------- ------- TOTAL 26,312 26,560 40,166 40,548 ------- ------- ------- ------- BALANCE RECEIVABLE - Ministry of Mines and Energy 21,819 17,005 34,256 27,485 ======= ======= ======= =======

PARENT COMPANY CONSOLIDATED ---------------------------------------------------- Jun-02 Mar-02 Jun-02 Mar-02 -------- -------- -------- -------- ASSET Tax loss 347,330 108,192 691,009 406,455 Temporary additions CVM Rule 371 30,451 30,451 30,451 30,451 Other temporary additions 144,675 166,969 187,120 205,472 -------- -------- -------- -------- 522,456 305,612 908,580 642,378 ======== ======== ======== ======== Statutory rate 25% 25% 25% 25% -------- -------- -------- -------- Income tax 130,614 76,403 227,145 160,595 ======== ======== ======== ======== Negative basis of social contribution 404,346 149,023 642,181 340,263 Temporary additions: CVM Rule 371 30,451 30,451 30,451 30,451 Other temporary additions 59,154 82,431 85,528 106,472 -------- -------- -------- -------- 493,951 261,905 758,160 477,186 Statutory rate 8% 8% 8% 8% -------- -------- -------- -------- Social contribution 39,516 20,953 60,653 38,175 ======== ======== ======== ======== Adjustment between statutory rate(8%) and realization(9%) (868) (1,140) -------- -------- -------- -------- TOTAL 170,130 97,356 286,930 197,630 ======== ======== ======== ========

PARENT COMPANY CONSOLIDATED ----------------- ----------------- COMPANIES TRANSACTION Jun-02 Mar-02 Mar-02 Jun-02 ----------------- ------------------------------------------ ------ ------ ------ ------ MAGISTRA Pass-through of costs and mutual contracts 41 - 56,950 54,670 ENERSUL Pass-through of costs 710 - - - ESCELSAPAR Pass-through of costs - 47 - - CESA Pass-through of costs - 284 - - OTHER AFFILIATED Pass-through of costs 611 570 611 809 ------ ------ ------ ------ 1,362 901 57,561 55,479 ====== ====== ====== ======

PARENT COMPANY CONSOLIDATED --------------------- ---------------------- Jun-02 Mar-02 Jun-02 Mar-02 -------- -------- -------- -------- Equity Investments: Stated by the equity method: MAGISTRA PARTICIPACOES S.A 744,805 719,918 - - TV A CABO VITORIA - TVIX S.A 129 153 - - ESCELSA PARTICIPACOES S.- - ESCELSAPAR 3,032 2,799 -------- -------- -------- -------- 747,966 722,870 - - -------- -------- -------- -------- Goodwill from investments: Goodwill - - 408,770 408,770 Discount from new share acquisition - - (15,152) (15,152) Goodwill amortization - - (15,907) (13,277) -------- -------- -------- -------- - - 377,711 380,341 -------- -------- -------- -------- Stated at restated cost: Others 37 37 37 37 -------- -------- -------- -------- 37 37 37 37 -------- -------- -------- -------- Projects, studies and other investments 1,833 1,732 1,940 1,852 -------- -------- -------- -------- TOTAL 749,836 724,639 379,688 382,230 ======== ======== ======== ========

MAGISTRA TVIX ESCELSAPAR ----------------------------- --------------------------- --------------------------- Jun-02 Mar-02 Jun-02 Mar-02 Jun-02 Mar-02 ----------- ----------- ------------ --------- --------- ---------- Share Class Common Common Common Common Common Common Total shares 473,203,348 473,203,348 1,540 1,540 1,000 1,000 Total shares of Escelsa 473,203,348 473,203,348 1,500 1,500 1,000 1,000 Stake (%) 100% 100% 97.40% 97.40% 100% 100% Value of capital stock 668,483 668,483 1,540 1,540 2,203 2,203 Shareholders' equity 744,805 719,918 132 157 3,032 2,799 Net income (loss) (14,381) 8,544 (69) (44) (3) (235) Investment value on June 30 744,805 719,918 129 153 3,032 2,799 Equity adjustment (14,381) 8,544 (68) (41) (3) (235)

PARENT COMPANY CONSOLIDATED ----------------------- Annual average rates -------------------------- Jun-02 Mar-02 of depreciation (%) Jun-02 Mar-02 --------- --------- -------------------- ---------- ---------- IN SERVICE: Generation 104,507 104,468 2.22% 197,128 196,837 -------------------------------------------------------------------------------- 23 [ESCELSA LOGO] QUARTERLY FINANCIAL STATEMENTS AS OF JUNE 30, 2002 -------------------------------------------------------------------------------- Transmission 13,333 13,003 2.86% 13,333 13,003 Distribution 1,020,864 1,010,280 4.34% 1,937,064 1,885,005 Commercialization 4,301 4,301 9.26% 7,451 7,264 Administration 111,281 110,973 8.82% 230,595 224,480 --------- --------- ---------- ---------- ---------- 1,254,286 1,243,025 4.54% 2,385,571 2,326,589 --------- --------- ---------- ---------- ---------- (-) Accumulated depreciation Generation (61,438) (60,796) (102,276) (100,954) Transmission (6,880) (6,785) (6,880) (6,785) Distribution (368,222) (359,073) (691,874) (674,561) Commercialization (2,363) (2,264) (2,690) (2,448) Administration (51,119) (48,897) (94,233) (89,026) --------- --------- ---------- ---------- (490,022) (477,815) (897,953) (873,774) --------- --------- ---------- ---------- 764,264 765,210 1,487,618 1,452,815 --------- --------- ---------- ---------- UNDER CONSTRUCTION: Generation 4,328 4,243 88,777 66,347 Transmission 658 799 658 799 Distribution 76,161 80,032 116,933 154,106 Administration 11,255 10,120 14,440 17,743 --------- --------- ---------- ---------- 92,402 95,194 220,808 238,995 --------- --------- ---------- ---------- 856,666 860,404 1,708,426 1,691,810 --------- --------- ---------- ---------- (-)Obligations related to the concession (94,268) (92,984) (184,647) (183,329) --------- --------- ---------- ---------- TOTAL 762,398 767,420 1,523,779 1,508,481 --------- --------- ---------- ----------

PARENT COMPANY CONSOLIDATED ------------------------- -------------------------------------- Distribution Total Generation Distribution Total ------------ --------- ------------ -------------- ---------- Interest on loans and financing 75,075 75,075 6,542 102,329 108,871 (-) Transfer to property, plant and equipment (1,033) (1,033) (5,313) (3,310) (8,623) -------- -------- -------- -------- -------- Net 74,042 74,042 1,229 99,019 100,248 ======== ======== ======== ======== ======== Monetary exchange variation.. 235,866 235,866 1,920 267,463 269,383 (-)Transfer to property, plant and equipment (294) (294) (1,893) (693) (2,586) -------- -------- -------- -------- -------- Net 235,572 235,572 27 266,770 266,797 ======== ======== ======== ======== ========

PARENT COMPANY ------------------------------------------------------------------------------------------------------------------------------------ Maturity Jun-02 Mar-02 ---------------------------- ----------------------------- -------------------------- Interest Interest and and Average Interest Other Other DESCRIPTION Rate Period Charges Current Long-Term Charges Current Long-Term ------------------------------------------------------------------------------------------------------------------------------------ Local Currency: ELETROBRAS 5,0% - 7,0% Monthly May/99 to Aug/07 - 1,932 4,324 - 1,777 4,775 BNDES TJLP plus 3.8% Monthly Nov/99 to Oct/10 1,590 27,150 162,713 1,691 60,894 164,883 BNDES-Rationing losses SELIC plus1,0% Monthly Feb/02 to Feb/03 - 28,763 - - - - Bank Loan CDI Monthly Oct/01 to Aug/02 - 28,554 - - 8,300 - ----------------------------- -------------------------- 1,590 86,399 167,037 1,691 70,971 169,658 ----------------------------- -------------------------- Foreign Currency: Senior Notes 10.0% Bullet Jul/07 56,183 - 1,225,817 20,862 - 1,001,374 ----------------------------- -------------------------- TOTAL 57,773 86,399 1,392,854 22,553 70,971 1,171,032 ============================= ==========================

CONSOLIDATED ------------------------------------------------------------------------------------------------------------------------------------ Maturity Jun-02 Mar-02 ---------------------------- ----------------------------- -------------------------- Interest Interest and and Average Interest Other Other DESCRIPTION Rate TIPO Period Charges Current Long-Term Charges Current Long-Term ------------------------------------------------------------------------------------------------------------------------------------ Local Currency: ELETROBRAS - ESCELSA 5.0% to 7.0% Monthly May/99 to Nov/04 - 1,932 4,324 - 1,777 4,775 ELETROBRAS - ENERSUL 6.0% to 12.0% Monthly May/99 to Aug/07 480 16,954 43,669 384 19,444 45,703 BNDES - ESCELSA TJLP plus 3.8% Monthly Oct/99 a Oct/10 1,590 27,150 162,713 1,691 60,894 164,883 BNDES - MAGISTRA TJLP plus 4.0% Half-Year Nov/99 a Nov/04 1,179 38,485 57,727 4,167 38,169 76,339 BNDES - ENERSUL TJLP plus 3.85% Monthly Jul/99 a Feb/08 247 12,787 59,674 314 12,683 62,356 BNDES - ENERSUL TJLP plus 4.00% Monthly May/99 a Apr/04 6 916 763 8 908 985 BNDES-Rationing losses SELIC plus 1.0% Monthly Feb/02 a Feb/03 98 43,903 - 179 20,337 - BCO BRASIL - FCO 11.20% Monthly Nov/02 a Nov/13 586 - 30,000 363 - 20,000 Bank Loan CDI Monthly Jul/02 a Mar/03 1,274 134,156 - 1,277 88,003 - FUNDACAO ENERSUL 10% Monthly Nov/02 a Nov/13 109 1,591 16,781 109 1,453 16,958 Other 1.35% Monthly May/00 a Jun/09 162 1,015 1,537 29 15,073 3,665 ============================= ========================== TOTAL 5,731 278,889 377,188 8,521 258,741 395,664 ============================= ========================== Foreign Currency: SENIOR NOTES 10,0% Bullet Jul/07 56,183 - 1,225,817 20,862 - 1,001,374 BRADESCO(*) 4,90% to 12,00% (**) May/01 a Nov/02 119 21,292 - 298 11,565 - UNIBANCO(*) 10,85% to 11,40% (**) Mar/01 a Apr/04 - - 14,121 144 11,334 11,535 EUROPEAN INVEST BANK LIBOR plus 4,0% Half-Year Apr/00 a Mar/09 197 - 46,079 732 - 37,642 to 5,0% STN-DMLP LIBOR plus 4,5% Half-Year Apr/94 a Apr/24 553 1,213 40,001 914 886 33,225 to 8,2% BBA FMO(*) 8,90% Half-Year Oct/01 a Sep/07 495 3,852 12,711 508 4,328 9,202 Other 1,5% to 3,5% Bullet Nov/01 a Oct/02 270 37,907 - 220 29,862 - ============================= ========================== 57,817 64,264 1,338,729 23,678 57,975 1,092,978 ============================= ========================== 63,548 343,153 1,715,917 32,199 316,716 1,488,642 ============================= ========================== Long Term Interest Banco B.B.A FMO (*) - - - 89 - - ============================= ========================== UNIBANCO (*) 2,085 - - 1,378 - - 2,085 - - 1,467 - - ============================= ==========================

Maturity PARENT COMPANY CONSOLIDATED ----------- --------------------------------- ---------------------------------- Currency ------------------------------------------------------------------------ Current Local Foreign Total Local Foreign Total ------- --------- --------- -------- --------- --------- 2002 62,277 - 62,277 219,350 61,786 281,136 2003 24,122 - 24,122 59,539 2,478 62,017 ------- --------- --------- -------- --------- --------- 86,399 - 86,399 278,889 64,264 343,153 ------- --------- --------- -------- --------- --------- Long term 2003 23,284 - 23,284 57,428 10,394 67,822 2004 47,247 - 47,247 108,742 29,519 138,261 2005 49,773 - 49,773 72,010 15,397 87,407 2006 30,169 - 30,169 53,126 12,672 65,798 2007 4,764 1,225,817 1,230,581 28,569 1,238,036 1,266,605 2008 4,274 - 4,274 16,010 6,837 22,847 2009 4,274 - 4,274 10,890 2,391 13,281 2010 3,252 - 3,252 9,868 1,825 11,693 2011 - - - 6,616 1,825 8,441 After 2011 - - - 13,929 19,833 33,762 ------- --------- --------- -------- --------- --------- 167,037 1,225,817 1,392,854 377,188 1,338,729 1,715,917 ======= ========= ========= ======== ========= ========= TOTAL 253,436 1,225,817 1,479,253 656,077 1,402,993 2,059,070 ======= ========= ========= ======== ========= =========

PARENT COMPANY ---------------------------------------------------------------------------- Jun-02 Mar-02 ------------------------------------ ----------------------------------- Provision Provision -------------------- ------------------------ -------- ----------------------- -------- Escrow In the Escrow Contingency In the Year Accumulated Deposits quarter Accumulated Deposits -------------------- ----------- ----------- -------- ------- ----------- -------- Current liabilities: Fiscal COFINS - 39,382 39,382 - 39,382 39,382 ------- ------- ------- ------- ------- ------- TOTAL - 39,382 39,382 - 39,382 39,382 ======= ======= ======= ======= ======= ======= Long-term: Labor claims 916 16,769 9,914 (207) 15,853 9,663 Civil litigation 659 27,601 6,894 228 26,942 6,539 Fiscal 2,241 73,594 49,633 1,927 71,353 47,449 ------- ------- ------- ------- ------- ------- TOTAL 3,816 117,964 66,441 1,948 114,148 63,651 ======= ======= ======= ======= ======= =======

CONSOLIDATED ---------------------------------------------------------------------------- Jun-02 Mar-02 ------------------------------------ ----------------------------------- Provision Provision -------------------- ------------------------ -------- ----------------------- -------- Escrow Escrow Contingency In the Year Accumulated Deposits In the Year Accumulated Deposits -------------------- ----------- ----------- -------- ----------- ----------- -------- Current liabilities: Fiscal COFINS - 39,382 39,382 - 39,382 39,382 ------- ------- ------- ------- ------- ------- TOTAL - 39,382 39,382 - 39,382 39,382 ======= ======= ======= ======= ======= ======= Long-term: Labor claims 1,026 20,543 11,845 (482) 19,517 11,428 Civil litigation 840 32,157 7,112 219 31,317 6,756 Fiscal 4,307 96,085 66,393 3,064 91,778 62,373 ------- ------- ------- ------- ------- ------- TOTAL 6,173 148,785 85,350 2,801 142,612 80,557 ======= ======= ======= ======= ======= =======

CREDITS CAPITAL CAPITAL RETAINED FOR CAPITAL STOCK RESERVES EARNINGS SUBTOTAL INCREASE TOTAL ---------------------------------------------------------------------------------- BALANCE AS OF DECEMBER 31, 2001 153,947 574,069 - 728,016 3,387 731,403 Remuneration on construction work in progress 2,402 2,402 2,402 Income for the period (174,368) (174,368) (174,368) ------- ------- -------- -------- -------- -------- BALANCE AS OF JUNE 30, 2002 153,947 576,471 (174,368) 556,050 3,387 559,437 ======= ======= ======== ======== ======== ========

PARENT COMPANY ------------------------------------------------------------ Jun-02 Jun-01 ----------------------------- ----------------------------- Income tax Social Cont. Income tax Social Cont. ------------ --------------- ------------ -------------- Income (loss) before taxes (251,694) (251,694) (134,392) (134,392) Statutory rate 25% 8% 25% 8% ============================================================ (62,924) (20,136) (33,598) (10,751) Remuneration on construction work in progress 601 192 75 24 Equity in subsidiaries 3,613 1,156 1,422 455 Non-deductible provision 3,201 102 3,649 (207) Adjustments - tax credits (DIPJ/2001) (3,302) (100) (3,457) 221 ------------------------------------------------------------ (58,541) (18,786) (31,909) (10,258) ============================================================ Effective rate 25% 8% 25% 8% ============================================================

PARENT COMPANY CONSOLIDATED ------------------------ ------------------------ Jun-02 Mar-02 Jun-02 Mar-02 --------- --------- --------- --------- Marketable securities 214,501 207,672 214,693 207,931 Loans and financing - Long-term 1,392,854 1,171,032 1,715,917 1,488,642

Date Parameters (rates %) Financial ------------------------- -------------------- Institution Transaction Maturity Amount Banks ESCELSA Income ----------- ----------- -------- ------ ----- ------- ------ Banco Pactual 28/03/02 14/01/03 19.38 4,32 1,04 3.617 Banco do Brasil 28/03/02 12/07/02 19.03 4,32 1,04 3.718 ----- 7.335 =====

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