ADR: CAIFY, CAIGY MMAARRKKEETTLLEETTTTEERR … · Infovias business Eletrobrás, after examining all the points related to the request of bankruptcy of Eletronet, and bearing in mind

BOVESPA: ELET3, ELET6 LATIBEX: XELTO, XELB ADR: CAIFY, CAIGY

www.eletrobras.gov.br

CENT

RAIS ELÉTRICAS BRASILEIRAS S.A. ELETROBRÁS

MMMAAARRRKKKEEETTTLLLEEETTTTTTEEERRR MMMaaarrrccchhh 222000000333

ELETROBRÁS’ PERFORMANCE DURING THE

FIRST QUARTER 2003 Rio de Janeiro, May 15th, 2003 – Eletrobrás recorded in the first quarter of 2003 a loss in the amount of R$ 227.7 million, equivalent to R$ 0.42 per 1000 shares, in comparison to a net income of R$ 299.3 million, equivalent to R$ 0.56 per 1000 shares, for the same period of 2002. The first quarter of 2003 was impacted by a strong appreciation of the Real currency, in relation to the US dollar. Such appreciation was caused by the wide-spread opinion about the enhancement of the Brazilian economic and political scenario, with a consequent reduction in the country’s credit risk. During the first quarter, the appreciation of the Real in relation to the US$ reached 5.1%, as compared to a depreciation of 0.14% in the same period of 2002. Such effect negatively impacted Eletrobrás, since the company holds assets represented by loans and financing receivable, mainly from Itaipu, which are dollar indexed, and thus recorded high expenses originated by currency devaluation. On the part of the controlled companies, since they hold dollar indexed liabilities, the appreciation was positive for them, which caused a favorable effect in the formation of the equity revenue on Eletrobrás. The currency variation represented a net loss of R$ 1,015 million, whereas the monetary variation resulted in e net revenue of R$ 359 million. The final balance of these accounts registered a loss of R$ 656 million during the first quarter of 2003, in comparison with R$ 13 million for the same period of 2002. The controlled companies of Eletrobrás recorded of a revenue on the equity method in the amount of R$ 80 million, therefore inferior to the value recorded during the first quarter of 2002, of R$ 158 million. The main indexes of the loans and financing contracts registered the following variations:

AS AT 03/31/2003 03/31/2002

IGP-M 6.27% 0.51% US$ 0.14%

(5.10%)

Index by Company: Companies Page Eletrobrás 04Itaipu 10Furnas 14Chesf 19Eletronorte 27Eletrosul 32Eletronuclear 37CGTEE 41Lightpar 46Ceron 48Eletroacre 53Ceal 58Cepisa 63Ceam 68

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Results of participation

CONTROLLED

(R$ million)

March/ 2003

March/2002

Company 1st Quarter

Result

EBITDA

1st Quarter

Result

EBITDA

Furnas

132.5

298.8

226.8

492.2

Chesf 91.4 454.5 (2.9) 265.0 Eletronorte (59.2) 162.8 (153.5) 125.2 Eletrosul 59.8 53.6 28.9 45.5 Eletronuclear (95.8) 47.9 (22.8) 68.2 CGTE 7.0 20.8 0.8 19.1

TEMPORARY INVESTMENT

(R$ million)

March/2003

March/2002

Company

1st Quarter Result

EBITDA

1st Quarter

Result

EBITDA

Cepisa

(34.3)

(11.4)

(16.9)

(0.7)

Ceron (28.2) 8.3 (19.3) 7.9 Eletroacre (0.9) 2.0 (1.1) 1.2 Ceal (16.1) 8.4 (14.2) (0.8)

The results from the generating subsidiary companies of Eletrobrás are highly influenced by the market performance, with high amounts of non-contracted energy and by the price practiced at MAE, which is not sufficient to cover the generation costs of that energy. Additionally, Furnas has owns a contract for power with CIEN and Termo Cuiabá, whereas Eletronorte buys energy from Termo Norte, for supply to Acre and Rondônia, at a higher price than its supply tariff. We wish to point out that some other provisions were made this quarter, relating to civil contingencies of compulsory loans, in the amount of R$ 95 million.

2

The company has a conservative practice of considering in the evaluation of temporary investments the stockholders equity of the companies under this category. As a consequence, Eletrobrás makes

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 provisions for coverage of negative stockholders equity of those investments, which caused, in the first quarter, a negative impact of R$ 50 million.

The role of energy trader of the energy from Itaipu, performed by Eletrobrás since January/2003, doesn’t impact directly on the result, as established by specific legislation on the subject. The surplus registered during the first quarter, in the amount of R$ 68.7 million, is destined for the payment of premium to consumers of residential and rural classes, with monthly consumption below 350 kWh, according to Decree 4550, dated December 27,2002, and is presented in the Statement of Income, under Charges with consumers. Infovias business Eletrobrás, after examining all the points related to the request of bankruptcy of Eletronet, and bearing in mind that Lightpar owns credits towards Eletronet, which when paid will be passed to controlled companies of Eletrobrás, decided, in a conservative manner, that this quarter, the stockholders equity would be reduced, in the amount of R$ 51,820 thousand, of controlled companies Furnas, Chesf, Eletrosul and Eletronorte for the effect of recognition of shareholding equity in these investments, which corresponds to accounts receivable kept by those companies towards Lightpar.

3

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003

RESULT RREESSUULLTT (R$ thousand)

PARENT COMPANY CONSOLIDATED

ASSETS 2003 2002 2003 2002

CURRENT ASSETS Cash and banks 579,062 545,222 1,859,195 2,074,101 Consumers and resellers 1,410,577 5,659 5,180,534 4,882,639 Loans and financing 3,002,361 3,034,281 882,764 1,013,786 Interest, commissions and charges 1,799,289 1,875,372 123,044 429,119 Marketable securities 255,744 153,589 265,174 294,868 Tax credits 396,676 226,891 683,162 492,630 Stored materials 733 681 439,203 490,944 Investments remuneration 306,492 348,498 28,983 2,456 Sundry receivables 2,660 5,977 398,581 325,907 Fuel consumption account - CCC 730,793 365,495 737,831 360,389 Renegotiated receivables 389,758 985,534 146,853 71,321 Electric energy traded 211,496 - 211,496 - Others 353,926 178,658 453,077 387,573

9,439,567 7,725,857 11,409,897 10,825,733

LONG-TERM RECEIVABLES Loans and financing 39,052,380 27,677,208 16,607,767 11,815,920 Marketable securities 809,349 852,012 1,203,773 1,062,350 Studies and projects 61,622 48,475 61,622 48,475 Concessions to bid 233,570 242,481 247,847 257,015 Consumers and resellers - - 1,023,119 1,230,330 Renegociable credits - - 1,570,339 864,515 Tax credits 906,434 272,190 906,434 703,491 Temporary investments 22,324 841,303 22,324 841,303 Others 47,225 124,545 1,573,790 549,602

41,132,904 30,058,214 23,217,015 17,373,001 Advances for capital participation 3,280,206 2,796,430 540,414 297,750

44,413,110 32,854,644 23,757,429 17,670,751

PERMANENT ASSETS

Investments 36,965,560 39,686,637 3,281,664 3,374,034 Property, plant and equipment 5,983 13,573 81,818,721 72,289,178 Deferred charges 49 5,200 1,024,961 638,979

36,971,592 39,705,410 86,125,346 76,302,191

TOTAL 90,824,269 80,285,911 121,292,672 104,798,675

4


(R$ thousand)PARENT COMPANY CONSOLIDATED

LIABILITIES 2003 2002 2003 2002

CURRENT LIABILITIES Loans and financing 284,875 528,110 1,082,018 1,877,465 Charges on loans and financing 129,197 93,735 235,209 171,579 Subsidiaries payables 1,504,010 4,780 - - Fuel consumption account - CCC 714,621 878,357 719,237 880,282 Suppliers 1,382,877 7,189 3,125,458 3,355,790 Compulsory loan 271,372 198,490 271,372 198,490 Shareholders' remuneration 481,656 1,447,732 494,709 1,465,305 Taxes and social contributions 407,637 216,793 1,032,216 874,943 Provisions for contingencies - - 250,899 318,957 Remuneration and reimbursement - - 320,559 264,779 Actuarial liability 21,745 22,236 245,223 205,314 Others 58,414 54,471 1,012,177 584,748

5,256,404 3,451,893 8,789,077 10,197,652

LONG-TERM LIABILITIES Loans and financing 5,380,119 3,375,442 27,408,417 17,816,948 Subsidiaries payables - 1,034,269 - - Global reversal reserve - RGR 4,364,327 2,612,678 4,364,327 2,612,678 Compulsory loan 3,713,245 3,108,247 3,713,245 3,108,247 Taxes and social contributions 3,697,823 1,104,551 4,681,573 2,185,502 Provisions for contingencies 1,012,160 737,374 1,504,870 1,028,931 Provisions for deficits in investments 683,931 - 683,931 - Actuarial liability 75,777 80,640 2,206,329 2,087,207 Others 3,812 1,200 1,006,328 686,760

18,931,194 12,054,401 45,569,020 29,526,273

MINORITY INTERESTS IN SUBSIDIARIES - - 297,904 295,133

STOCKHOLDERS' EQUITY Capital 20,612,196 20,612,196 20,612,196 20,612,196 Capital reserves 23,418,790 22,716,098 23,418,790 22,716,098 Revenue reserves 19,061,006 17,696,660 19,061,006 17,696,660 Retained earnings 1,710,912 2,237,871 1,710,912 2,237,871

64,802,904 63,262,825 64,802,904 63,262,825 Advances for capital increase 1,833,767 1,516,792 1,833,767 1,516,792

66,636,671 64,779,617 66,636,671 64,779,617

TOTAL 90,824,269 80,285,911 121,292,672 104,798,675

5


(R$ thousand)PARENT COMPANY CONSOLIDATED

STATEMENT OF INCOME 2003 2002 2003 2002

OPERATING REVENUES Electric energy sales 1,897,423 - 4,098,376 2,985,384 Subventions - fuel consumption - - 141,735 162,325 Arrears interest on energy sales 184 - 108,591 32,374

1,897,607 - 4,348,702 3,180,083 Loans and financing Interest, commissions and charges 1,036,672 792,073 417,021 143,515 Net monetary and exchange variations 12,514 Equity accounting 79,969 158,225 10,269 Others 75,656 55,100 209,372 182,805 (-) PASEP and COFINS Reversal of provisions for doubtful debts 30,552 - 30,552 -

2,335,325 992,796 3,950,082 3,313,742 OPERATING EXPENSES Loans and financing 216,987 137,485 563,433 177,757 Energy purchased for resale 1,841,598 469 1,449,063 800,158 Fuel for electric energy production - - 188,285 203,326 Personnel, materials and services 26,838 21,133 462,741 385,384 Depreciation and amortization 346 701 384,446 621,555 Charges on taxes paid in instalments 4,896 6,073 7,919 18,722 Provision for contingencies 94,929 217,449 99,324 220,920 Provision for doubtful debts 2,498 - 2,498 - Charges on stockholders' remuneration 337,591 252,106 337,591 252,106 Charges on consumers 20,133 - 20,133 - Charges on use of electricity network - - 47,153 28,262 Donations and contributions 19,877 15,321 24,871 23,746 Others 25,161 28,055 471,486 260,790

2,590,854 678,792 4,058,943 2,992,726

OPERATING PROFIT 314,004 321,016

NON-OPERATING INCOME (EXPENSES) 8,325 5,106

INCOME BEFORE INCOME TAX AND 322,329 326,122 SOCIAL CONTRIBUTION Social contribution 22,823 (6,022) (12,739) Income Tax 65,296 (17,037) (15,500)

INCOME BEFORE PARTICIPATIONS 299,270 297,883 Minority interests 108 1,387

NET INCOME FOR THE YEAR 299,270 299,270

INCOME (LOSS) PER THOUSAND SHARES - R$ 0.56

(655,917) (814,883) (28,760) (3,576)

(129,214) (25,116) (237,106) (174,170)

(255,529) (108,861)

(60,279) (65,553)

(315,808) (174,414)

(3,477) (49,906)

(227,689) (227,797)

(227,689) (227,689)

(0.42)

6

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Eletrobrás’ Shares Local Market Eletrobrás’ shares, during the first quarter of 2003, recorded a depreciation in their quotations. Preferred “B” shares quotations registered a 15.5% decrease and as for common shares, a decrease of 24.04%. During the same period, Ibovespa index was stable, with a 0.04% increase, whereas the Index of Electric Power Shares, of Bolsa de Valores de São Paulo, decreased 11.5%. During the first quarter Eletrobrás shares recorded a daily average trade of 154 million common shares and 531 million preferred “B” shares ADR Market Since 1995, Eletrobrás has a registration in CVM for two American Depositary Receipts – ADR Level I , of the company’s common and preferred “B” class shares. The company’s Level I ADR’s are not allowed to publicly trade in the United States, and at the moment are traded on the over-the-counter market. At the end of the first quarter of 2003 the company’s ADR’s had a balance of 108.4 million ADR’s of common shares and 5.6 million ADR’s of preferred shares, with a ratio of 500 shares per each ADR. The ADR programs, due to the Real appreciation in relation to the US dollar, recorded in the 1st quarter of 2003 a depreciation in their quotations, which was inferior to the variation recorded by shares in the local market. ADR’s of preferred shares depreciated by 8.7% and 18.6% depreciation for the common shares. During the 1st quarter works with the objective of adapting the company’s accounting to the US GAAP were started, in order to obtain registration for listing Eletrobrás’ shares in the New York Stock Exchange, known as ADR’s Level II program. Such project is of major importance to the company and its controlled companies, since it increases the shares’ liquidity, as well as allows the increase of shareholders base. We also emphasize that for a company with Eletrobrás’ size, the listing in USA facilitates new future issues. Latibex Program Since 2000, Eletrobrás holds a registration of its common and preferred class “B” shares at LATIBEX, Program for Trading of Latin-American Companies’ Shares at the Madrid Stock Exchange, Spain, with reduced liquidity level. Eletrobrás is carrying out studies in order to contract specialists in this market, so as to increase the shares’ liquidity.

7

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Capital Structure

Capital as at 03.31.03 % Capital

Shareholders Number of

Shares Real Value Type/Class Total Common 452,511,763,550 17,352,962,561.67 100.00% 84.19%

Federal Gov. 264,328,120,835 10,136,478,991.97 58.41% 49.18% FND 22,810,794,898 874,750,452.37 5.04% 4.24% BNDESpar 65,589,960,070 2,515,249,797.24 14.49% 12.20% Others 99,782,887,747 3,826,483,320.09 22.05% 18.56%

Pref. A 73,460,000 2,817,050.81 100.00% 0.01% Others 73,460,000 2,817,050.81 100.00% 0.01%

Pref. B 84,917,297,330 3,256,416,297.00 100.00% 15.80% Federal Gov. 17,592,868,180 674,652,920.59 20.72% 3.27% FND 0 0.00 0.00% 0.00% BNDESpar 532,937,780 20,437,146.81 0.63% 0.10% Others 66,791,491,370 2,561,326,229.61 78.65% 12.44%

Total 537,502,520,880 20,612,195,909.48 100.00%

20,7 %

17,0%

62,3%

58.4 %

16.1% 14.5%

6.0

%

5.%

Minoritary - residentsMinoritary - non-residents

Federal Government BNDESPARFND

Common84.2%

Preferred 15.8%

8

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Shareholding Participation The complete table of Eletrobrás’ participation is available for consultation at: http://www.eletrobras.gov.br/invest_ing/participacao.asp The shareholding participation in controlled companies and temporary investments are informed together with each company’s financials. Loans and financing R$ thousands

Receivable Payable Subsidiaries 36,320,534 Local Currency 469,092 Temporary Investments 1,481,568 Foreign Currency 5,325,100 Others 6,051,928 Total 43,854,030 Total 5,794,192

Number of employees March/2003 - 791 March/2002 - 697

9

http://www.eletrobras.gov.br/invest_ing/participacao.asp


SUBSIDIARIIES RESULTS SSUUBBSSIIDDIIAARRIEESS RREESSUULLTTSS Itaipu IIttaaiippuu

US$ thousand ASSETS MARCH/2003 MARCH/2002

CURRENT ASSETS 694,211 752,752

Cash and banks 122,061 16,821

Accounts receivable - Contracts of services 557,614 656,101

Obligations and loans receivable 1,037 21,039

Debtors 2,489 4,454

Stored materials 7,791 51,598

Advances to personnel 1,926 1,210

Advances to suppliers 1,239 1,398

Collateral and linked deposits 54 131

NON-CURRENT ASSETS 219,787 209,823 Accounts receivable – Contracts of services 127,824 122,707

Obligations and loans receivable 81,093 71,900

Collateral and linked deposits 10,870 15,216

RESULTS ACCOUNT 600,805 1,251,580

Result to compensate from previous years 560,361 1,417,493

Result of the period 40,444 (165,913)

PERMANENT 17,581,974 17,516,290

Installations, Equipment and Ohers 17,581,974 17,516,290

TOTAL ASSETS 19,096,777 19,730,445

10


US$ thousand LIABILITIES MARCH/ 2003 MARCH/ 2002

CURRENT LIABILITIES 731,358 1,053,423

Loans and Financing 451,895 719,293

Charges in course to be paid 21,429 46,721

Remuneration and reimbursement 209,019 257,776

Suppliers and others 28,823 9,783

Wages and social obligations 19,694 19,280

Contractual retention given in guaranty 498 570

NON-CURRENT LIABILITIES 18,265,419 18,577,022 Loans and Financing 18,074,262 18,283,399

Charges in course to be paid 158 20,699

Remuneration and reimbursement 5,867 5,818

Estimated obligations 185,132 267,106

STOCKHOLDERS EQUITY - CAPITAL 100,000 100,000

ELETROBRAS 50,000 50,000

ANDE 50,000 50,000

TOTAL LIABILITIES 19,096,777 19,730,445

11


US$ thousand STATEMENT OF INCOME MARCH/ 2003 MARCH/ 2002

OPERATING REVENUES 538,883 627,426 POWER SUPPLY 515,511 609,357 ANDE 19,116 42,593 ELETROBRAS 496,395 ELETROSUL 109,082 FURNAS 457,682 REMUNERATION ON POWER ASSIGNMENT 16,830 13,637 ELETROBRAS 16,685 ELETROSUL 28 2,625 FURNAS 117 11,012 REIMBURSEMENT OF COST ON POWER ENTAILED 6,542 4,432 ELETROBRAS 6,537 4,432 ANDE 5 OPERATING EXPENSES 148,591 143,999 REMUNERATION AND REIMBURSEMENT 114,525 102,780 Capital Income 8,778 8,157 Reimbursement of Adm. and Supervision Charges 5,884 5,401 Additional Energy to the guaranteed 467 272 Royalties 76,491 71,154 Royalties Additional energy to the guaranteed 6,075 3,542 Remuneration due to cession of energy 16,830 13,637 Remuneration due to cession of additional energy to the guaranteed 617 EXPLORATION EXPENSES 34,066 41,219 Personnel 26,659 35,128 Material and Equipment 1,863 1,168 Third party services 3,501 3,633 Other operating expenses 2,043 1,290 RESULT OF SERVICE 390,292 483,427 FINANCIAL REVENUES 10,886 6,998 Financial operations income 4,340 2,333 Arrears in energy bills 2,562 902 Other financial revenues 3,984 3,763 FINANCIAL EXPENSES 441,629 325,362 Debt charges 310,607 320,187 Monetary variations 131,022 4,210 Charges on Remuneration and Reimbursement 965 Other financial expenses FINANCIAL RESULT (430,743) (318,364) OPERATING RESULT (40,451) 165,063 NON-OPERATING RESULT 7 850 Selected Revenues 286 976 Selected Expenses (279) (126) RESULT FOR THE PERIOD (40,444) 165,913

12


Main Investments ITAIPU’s installed capacity of 12,600 MW refers to its 18 units, and will remain unaltered until the conclusion of units 18A and 9A, scheduled for the 1st semester of 2004.

US$ Million

Project First Quarter/2003 First Quarter /2002 9A and 18A 19,8 10.3 PCO 0,8 3.4 TOTAL 20,6 10.7

Installed capacity: 12,600 MW Energy sale – available power - KW

First quarter

2003 First quarter

2002 32,361,000 32,361,000

Main Clients According to Decree 4550, dated December 27th, 2002 starting from 2003, Centrais Elétricas Brasileiras S/A – ELETROBRÁS was appointed as sole agent for energy trading, of all the energy generated by Itaipu.

Client Volume (Kw) US$ Million ELETROBRAS 31,161,000 496.4 ANDE 1,200,000 19.1 Number of employees March/2003 – 3,220 March/2002 – 3,208 Average Tariff (per KW of available power) - US$ 1.00/MW First quarter/2003 – 15.93 First quarter/2002 – 18.83

13


FURNAS FFUURRNNAASS (R$ thousand) March/2003 March/2002 ASSETS CURRENT ASSETS Cash and Banks 24,462 15,501 Open market operations 185,039 206,608 Consumers, concessionaires and affiliates 2,776,225 3,172,280 Provision for questionable debtors (322,816) - Loans and financing 42,084 5,099 Financed energy credits 97,914 98,452 Stored materials 50,932 47,033 Tax Credits 185,010 152,726 Taxes and contributions to be recovered 71,779 118,498 Expenses paid in advance 2,075 3,134 Collateral and linked deposits 8,974 9,147 Debtors 131,282 108,122 Others 48,546 22,699 3,301,506 3,959,299 NON-CURRENT ASSETS Consumers, concessionaires and affiliates 438,277 525,025 Concessions to bid 14,277 14,534 Loans and financing 223,585 174,246 Financed energy credits 562,608 285,217 Debtors 179,475 - Securitized bonds 125,232 86,601 Collateral and linked deposits 43,871 23,100 Property and rights for sale 33,611 39,293 Others 51,742 82,527 1,672,678 1,230,543 PERMANENT Investment 4,868 5,019 Property, plant and equipment 13,171,087 12,368,457 (-) Obligations linked to concession (112,540) (112,540) Deferred 812 777 13,064,227 12,261,713 TOTAL ASSETS 18,038,411 17,451,555

14

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 (R$ thousand) March/2003 March/2002 LIABILITIES CURRENT LIABILITIES Suppliers 1,559,422 2,276,790 Debt charges 26,966 18,574 Taxes and social contribution 449,397 616,919 Loans and financing 161,415 141,822 Estimated obligations 23,589 24,864 Provision for contingencies 92,297 137,364 Creditors 1,150,816 780,974 Fundação Real Grandeza pension fund – debt 76,490 54,773 Interest on capital 140,373 219,677 Employees’ participation in income 31,144 20,648 Others 161,487 98,717 3,873,396 4,391,122 NON-CURRENT LIABILITIES Suppliers - 424 Loans and financing 1,520,815 955,857 Taxes and social contributions 643,581 702,687 Fundação Real Grandeza pension fund–actuarial

provision 300,053 278,963

Fundação Real Grandeza pension fund -debt 751,576 633,395 Others 6 6 3,216,031 2,571,332 STOCKHOLDERS EQUITY Capital 1,257,785 1,257,785 Capital reserve 5,689,429 5,267,475 Revenues reserve 1,495,364 1,363,050 Accumulated income 2,475,252 2,569,637 10,917,830 10,457,947 Resources for capital increase 31,154 31,154 10,948,984 10,489,101 TOTAL LIABILITIES 18,038,411 17,451,555

15

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 STATEMENT OF INCOME (R$ thousand) March/2003 March/2002 OPERATING REVENUES Supply of electric energy 4,259 1,833 Gross sale of electric energy 799,484 2,102,890 Use of electric grid 229,123 216,721 Other revenues 5,542 12,302 1,038,408 2,333,746 Deductions from Operating revenues Taxes and contributions on revenues 35,157 82,854 Global Reversion Reserve 27,098 28,948 Other consumer charges 266 194 62,521 111,996 Net operating revenue 975,887 2,221,750 OPERATING EXPENSES Personnel 56,260 59,578 Material 6,016 6,584 Third party services 50,652 59,144 Financial compensation for the use of hydro resources 19,512 11,051 Electric energy purchased for resale 494,090 1,516,296 Short term energy 5,804 - Supervision tax for electric energy services 3,924 3,381 Provision for contingencies - 54,670 Reversion of provisions - (1,934) Depreciation and amortization 117,764 118,373 Research and Development 2,220 - Other expenses 38,617 20,813 794,859 1,847,956 Result of Service 181,028 373,794 FINANCIAL REVENUE (EXPENSE) Financial operations income 10,977 6,596 Debt charges (23,921) (22,633) Financial charges on other obligations (77,144) (29,712) Monetary variation and arrears in energy sold 4,948 31,934 Monetary variation and arrears in energy purchased (27,196) (11,763) Monetary variation and interest – financed energy credits 58,272 13,047 Monetary and currency variation of loans and financing 51,028 6,122 Monetary variation and interest on loans and financing granted 21,249 6,570 Monetary variation on contingencies (649) (358) Others 3,930 (21,039) 21,494 (21,236) Operating Result 202,522 352,558 NON-OPERATING REVENUE 814 14 NON-OPERATING EXPENSE (2,381) (1,370) Non-operating result (1,567) (1,356) RESULT before SOCIAL CONT, AND INCOME TAX 200,955 351,202 Social Contribution (18,135) (36,231) Income tax (50,370) (88,136) NET INCOME FOR THE PERIOD 132,450 226,835

16

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million March/2003 March/ 2002 EBITDA 298.8 492.2 EBITDA Margin 30.6% 22.2%

Investment Program - R$/million

Until

March /2003 Until

March /2002 Environmental quality 3.2 2.5 Inv. State Co’s in Support Structure 3.2 8.2 Energy at Mid-West axles 4.4 6.2 Energy at South axle 0.1 0.2 Energy at Southeast grid 365.2 250.0 Electrical integration North-South 11.7 17.6 TOTAL 387.8 284.7 Installed Capacity – 9,323 MW Energy Sale

Accumulated until March/2002 Accumulated until March/2003 MWh R$ thousand MWh R$ thousand

12,794,759 690,700 16,494,691 742,387 Main clients First quarter/2003 First quarter/2002

MWh R$ thousand MWh R$ thousand

. Cerj 1,635,608

90,236 2,066,302 88,851

. Chesf 485,049

21,012

517,590 18,954

. CPFL 1,216,457

54,996

1,610,604 63,103

. EBE 633,315

40,165

834,353 44,162

. Elma 1,944,479

122,133

2,517,480 139,468

. Escelsa 1,046,536

50,265

1,359,555 55,198

. Light 3,167,407

173,067

4,039,042 176,506

. Piratininga 646,400

40,995

808,713 42,805

17

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Energy purchased

First quarter/2003 First quarter/2002 MWh R$ thousand MWh R$ thousand

5,102,551 494,090 5,140,801 1,516,296 Average Tariff – R$/MWh First quarter /2003 – 61.57 First quarter /2002 – 51.33 Eletrobrás’ Participation

COMMON PREFERRED TOTAL COM. PREF. TOTAL SOCIAL CAPITAL 50,710,649,000 14,293,398,000 65,004,047,000 Eletrobrás 50,618,949,530 14,088,223,014 64,707,172,544 99.82% 98.56% 99.54%

18


CHESF CCHHEESSFF (R$ thousand)

ASSETS 03/31/03 03/31/02 CURRENT ASSETS Availability Cash and banks 5,201 63,012 Open-market operations 379,067 303,074 384,268 366,086 Credits, values and assets Consumers and concessionaires 692,182 886,743 Taxes and contributions to compensate 68,828 72,085 Advances to employees 17,777 19,684 Fuel consumption account - 16,673 Stored material 51,391 45,046 Collateral and attached deposits 122,654 - Deferred Social Contribution 13,494 - Securities from the National Treasury 8,779 - Expenses paid in advance 732 3,293 Others 81,910 49,152 1,442,015 1,458,762 NON-CURRENT ASSETS Credits, values and assets Consumers and concessionaires 595,583 611,080 Repassed Financing 2,658 5,501 Securities from the National Treasury 125,995 95,941 Collateral and attached deposits 17,346 - Deposits linked to legal actions 33,841 33,617 Deferred social contribution 160,530 - Assets and rights for sale 5,449 2,001 Others 3,834 3,576

945,236 751,716

PERMANENT Investments 2,792 2,809 Property, plant and equipment 16,272,069 16,183,594 Deferred 1,315 1,787

16,276,176 16,188,190 TOTAL ASSETS 18,663,427 18,398,668

19

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 (R$ thousand)

LIABILITIES 03/31/03 03/31/02 CURRENT LIABILITIES Suppliers 641,219 1,303,696 Payment roll 3,137 9,694 Taxes and social contribution 78,399 66,124 Dividends 103,345 78,117 Participation in income 14,467 - Loans and financing 629,961 646,137 Debt charges 14,403 31,481 Provision for contingencies 37,527 34,409 Estimated Obligations 31,077 27,721 Charges on consumers to collect (RGR and CCC) 30,225 35,414 Financial compensation for the use of hydro resources 17,997 12,505 Private Security entity 108,288 87,406 Other credits towards Eletrobrás 65,076 - Others 32,474 33,995 1,807,595 2,366,699 NON-CURRENT LIABILITIES Suppliers 50,898 53,275 Loans and financing 5,734,710 4,943,733 Deferred income tax 69,147 111,963 Taxes and social contribution - 30,103 Deferred ICMS 46,589 42,274 Private Security entity 893,296 881,051 Provision for contingencies 212,415 200,074 Charges to consumer to collect (RGR ) 10,820 9,651 Others 5,461 5,288 7,023,336 6,277,412 STOCKHOLDERS EQUITY Social Capital 1,258,333 1,256,333 Capital reserves 7,416,199 7,416,199 Revenue reserves 714,756 733,092 Accumulated incomes 148,812 54,537 9,538,100 9,460,161 Resources for capital increase 294,396 294,396 9,832,496 9,754,557 TOTAL LIABILITIES 18,663,427 18,398,668

20


(R$ thousand)

STATEMENT OF INCOME 03/31/03 03/31/02 OPERATING REVENUE Supply of electric energy 126,201 102,188 Gross energy supply 473,753 519,642 Availability of transmission system 130,556 105,436

Other operating revenues 599 15,631 731,109 742,897 DEDUCTIONS FROM OPERATING REVENUE Global Reversion Reserve - RGR (17,832) (19,172) Fuel for electric energy production (12,863) (7,917) ICMS on electric energy (17,919) (10,685) Charge of emergency capacity (12,855) - COFINS (21,530) (21,592) PASEP (7,931) (4,678) (90,930) (64,044) NET OPERATING REVENUE 640,179 678,853 COST OF ELECTRIC ENERGY SERVICE Cost with electric energy Energy purchased for resale (45,756) (304,192) Charges for use of electric grid (18,582) (4,938) Cost of operation Personnel (18,693) (15,563) Material (1,165) (1,156) Fuel for electric production (578) (16,832) Third party services (4,008) (4,047) Financial Compensation for the use of hydro resources (28,316) (18,944) Depreciation and amortization (120,495) (119,955) Supervision Tax from ANEEL (3,160) (2,551) National Fund for Scientific and Tech. Development (4,049) - Others (5,277) 563 Rents (659) (539) Insurance - - Taxes (2,119) (2,426) Donations, contrib. and subventions (2,009) (20) Recovery of Expenses 5,256 3,238 Others (5,746) 310 (250,079) (487,615) COST OF SERVICE RENDERED TO OTHERS (1) - Taxes (COFINS) (1) - GROSS OPERATING INCOME 390,099 191,238 OPERATING EXPENSES Expenses with sales (39) (29) Personnel - - Material (1) - Third party services (31) (29) Others (7) -

21


(R$ thousand) STATEMENT OF INCOME 03/31/03 03/31/02 General and administrative expenses - Personnel (34,871) (28,992) Material (2,112) (1,597) Third party services (8,154) (7,031) Depreciation and amortization (7,301) (6,781) Labor, civil and fiscal causes (2,002) (1,831) National Fund for Scientific Tech. Development - - Taxes (COFINS, PASEP, IPTU etc.) (4,262) (1,432) Others (4,632) (5,292) Donations, contrib. and subventions (1,207) (4,726) Rents (2,553) (1,612) Insurance (779) (847) Recovery of expenses 11 1,978 Other administrative expenses (104) (85) (63,373) (52,985) RESULT OF SERVICE 326,726 138,253 FINANCIAL REVENUE (EXPENSE) Income from financial applications 25,948 11,050 Monetary Variation and arrears in energy sold 21,015 7,355 Other monetary variations – asset 11,335 719 Other financial revenues 3,950 2,544 Debt charges (189,276) (145,003) Monetary variations linked to permanent assets (7,027) (9,478) Other monetary variations – liability (24,210) (2,351) Other financial expenses (15,004) (7,802) (173,269) (142,966) OPERATING INCOME 153,457 (4,713) Non-operating revenue 13 16 Non-operating expense (18) (271) Non-operating result (5) (255) Income (Loss) before Social Contribution and Inc. Tax 153,452 (4,968) Current social contribution (10,017) - Deferred social contribution (4,293) - Current Income tax (41,907) (10,912) Deferred Income tax (5,882) 12,958 Employees’ participation in income - - NET INCOME /(LOSS) FOR THE YEAR 91,353 (2,922) Net income / (loss) per share (R$) 2.20 (0.07)

22


STATEMENT OF INCOME 03/31/03 Generation Transmission TOTAL

03/31/02

OPERATING REVENUE Supply of electric energy 126,201 - 126,201 102,188 Gross sale of electric energy 473,753 - 473,753 519,642 Availability of transmission system - 130,556 130,556 105,436

Other operating revenues 38 561 599 15,631 599,992 131,117 731,109 742,897 DEDUCTIONS TO OPERATING REVENUES Global Reversion Reserve - RGR (14,506) (3,326) (17,832) (19,172) Fuel Consumption account (12,863) - (12,863) (7,917) ICMS on electric energy (17,919) - (17,919) (10,685) Charge of emergency capacity (12,855) - (12,855) - COFINS (17,613) (3,917) (21,530) (21,592) PASEP (6,495) (1,436) (7,931) (4,678) (82,251) (8,679) (90,930) (64,044) NET OPERATING REVENUE 517,741 122,438 640,179 678,853 COST OF ELECTRIC ENERGY SERVICE Cost with electric energy Electric energy purchased for resale (45,756) - (45,756) (304,192) Charges on the use of electric grid (18,582) - (18,582) (4,938) Cost of operation Personnel (5,299) (13,394) (18,693) (15,563) Material (290) (875) (1,165) (1,156) Fuel for the production of energy (578) - (578) (16,832) Third party services (774) (3,234) (4,008) (4,047) Financial compensation for the use of hydro resources (28,316) - (28,316) (18,944) Depreciation and amortization (81,267) (39,228) (120,495) (119,955) Supervision tax of ANEEL (2,507) (653) (3,160) (2,551) National Fund of Scientific and Tech. Development (3,493) (556) (4,049) - Others (4,200) (1,077) (5,277) 563 Rents (150) (509) (659) (539) Insurance - - - - Taxes (2,003) (116) (2,119) (2,426) Donations, contrib. and subventions (1,936) (73) (2,009) (20) Recovery of expenses 5,256 - 5,256 3,238 Others (5,367) (379) (5,746) 310 (191,062) (59,017) (250,079) (487,615) COST OF SERVICE RENDERED TO OTHERS - (1) (1) - Taxes (COFINS) - (1) (1) - GROSS OPERATING INCOME 326,679 63,420 390,099 191,238 OPERATING EXPENSES Expenses with sales (10) (29) (39) (29) Personnel - - - - Material - (1) (1) - Third party services (8) (23) (31) (29)

23


STATEMENT OF INCOME Transmission TOTAL

03/31/02 03/31/03 Generation

Others (2) (5) (7) - General and administrative expenses - Personnel (11,509) (23,362) (34,871) (28,992) Material (664) (1,448) (2,112) (1,597) Third party services (3,140) (5,014) (8,154) (7,031) Depreciation and amortization (3,378) (3,923) (7,301) (6,781) Labor, civil and fiscal causes (516) (1,486) (2,002) (1,831) National Fund of Scientific and Tech. Development - - - - Taxes (COFINS, PASEP, IPTU etc,) (1,329) (2,933) (4,262) (1,432) Others (1,516) (3,116) (4,632) (5,292) Donations, contrib. and subventions (308) (899) (1,207) (4,726) Rents (982) (1,571) (2,553) (1,612) Insurance (199) (580) (779) (847) Recovery of expenses 3 8 11 1,978 Other administrative expenses (30) (74) (104) (85) (22,062) (41,311) (63,373) (52,985) RESULT OF SERVICE 304,617 22,109 326,726 138,253 FINANCIAL REVENUE (EXPENSE) Financial operations revenue 20,989 4,959 25,948 11,050 Monetary variation and arrears in energy sold 20,918 97 21,015 7,355 Other monetary variations – asset 11,255 80 11,335 719 Other financial revenues 1,244 2,706 3,950 2,544 Debt charges (162,047) (27,229) (189,276) (145,003) Monetary variations linked to permanent asset (8,374) 1,347 (7,027) (9,478) Other monetary variations – liability (6,165) (18,045) (24,210) (2,351) Other financial expenses (3,889) (11,115) (15,004) (7,802) (126,069) (47,200) (173,269) (142,966) OPERATING RESULT 178,548 (25,091) 153,457 (4,713) Non-operating revenue 3 10 13 16 Non-operating expense (17) (1) (18) (271) Non-operating Result (14) 9 (5) (255) Net Income (Loss) before Social Contrib, and I,T. 178,534 (25,082) 153,452 (4,968) Current Social Contribution (10,017) - Deferred social contribution (4,293) - Current income tax (41,907) (10,912) Deferred Income tax (5,882) 12,958 Employees’ participation in income - - NET INCOME (LOSS) FOR THE PERIOD 91,353 (2,922) Net Income per share (R$) 2.20 (0.07)

24

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million March/2003 March/2002 EBITDA 454.5 265.0 EBITDA Margin 71% 39%

Main Investments

R$ million Project March/2003 March/2002

Itaparica Project 13.7 12.4 Generation 65.8 29.2 Transmission 35.2 38.6 Infrastructure 2.6 5.7 TOTAL 117.3 85.9

Installed Capacity: 10,703 Mw Energy Sale – MWh

First quarter/2003

First quarter/2002

4,281,576 4,295,201

Main Clients March/2003 March/2002

Client Volume (MWh) R$ million Volume (MWh) R$ million COELBA (BA) 815,080 34 815,080 34 CELPE (PE) 674,730 28 674,730 28 COELCE (CE) 471,687 20 471,687 20 COSERN (RN) 256,468 10 380,408 14 SAELPA (PB) 215,518 9 260,399 10 CEAL (AL) 168,641 7 235,992 9 ENERGIPE (SE) 157,038 6 161,045 6 CEPISA (PI) 114,950 5 154,747 6 CELB (PB) 43,897 2 38,138 2 TRIKEM (AL) 89,489 7 73,864 5 DOW QUÍMICA (BA) 87,818 6 62,062 4 COPENE (BA) 78,701 5 53,464 3 ALCAN (BA) 79,022 4 75,334 4 FERBASA (BA) 89,456 4 78,883 3 SIBRA (BA) 57,656 3 48,344 2 CARAÍBA METAIS (BA) 11,384 1 30,833 2 Energy Purchased

Suppliers March/2003 March/2002 R$ million Mw R$ million Mw

Eletronorte 7 179,118 9 238,824 Furnas 8 174,541 7 180,739

25

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Number of employees March 2003 – 5,524 March 2002 – 5,050 Average Tariff – R$/MWh Generation – First quarter/2003 – 44.77 First quarter/2002 – 38.68 Distribution – First quarter/2003 – 59.98 First quarter/2002 – 52.50 Eletrobrás’ Participation

COMMON PREFERRED

TOTAL ORD. PREF.

TOTAL SOCIAL CAPITAL 40,477,564 1,145,290 41,622,854 Eletrobrás 40,477,564 916,435 41,393,999 100.00% 80.02% 99.45%

26


Eletronorte EElleettrroonnoorrttee

Consolidated (R$ thousand)

ASSETS MARCH MARCH 2003 2002

CURRENT ASSETS

Cash and banks 62,879 72,659 Consumers and resellers 673,102 726,223 Debtors 33,556 76,906 Public titles 536 140,450 Other credits 34,066 30,730 Stored material 33,643 40,366 Expenses paid in advance 4,144 1,295

841,926 1,088,629 NON-CURRENT ASSETS

Resellers-negotiable credits 370,538 161,933 ICMS to recover 224,399 159,209 Public titles 112,798 - Collateral and attached deposits 72,761 43,640 Credits towards Eletrobrás (sale of UHE Manso)

246,765 246,765

Credits towards Eletrobrás (canceled concessions)

999,725 999,725

Assets and rights for sale 50,677 57,700 Others 165,726 14,109

2,243,389 1,683,081

PERMANENT Investments 220,203 94,130 Property, plant and equipment 15,002,482 14,192,090 Deferred 15,097 630,728

15,237,782 14,916,948

TOTAL ASSETS 18,323,097 17,688,658

27



LIABILITIES MARCH MARCH 2003 2002

CURRENT LIABILITIES

Suppliers 515,392 549,665 Debt charges 1,367,720 981,885 Taxes and social contributions 47,749 53,503 Loans and financing 1,588,340 1,207,124 Estimated obligations 30,698 25,972 Obligations towards Previnorte 36,404 36,404 Provision for contingencies 100,411 171,298 Others 83,311 52,041

3,770,025 3,077,892

NON-CURRENT LIABILITIES

Loans and financing 4,531,974 3,028,179 Taxes and social contributions 59,252 73,594 Obligations towards Previnorte – New benefit plan 42,961 65,317 Others 108,728 73,249

4,742,915 3,240,339 STOCKHOLDERS EQUITY

Subscribed Capital 2,843,235 2,801,017 Paid-up Capital 2,843,235 2,801,017 Capital reserves 7,003,627 9,158,640 Accumulated losses (59,205) (589,230)

9,787,657 11,370,427 Resources for capital increase 22,500 -

9,810,157 11,370,427


28


29


STATEMENT OF INCOME MARCH MARCH 2003 2002

OPERATING REVENUE

Supply of electric energy 225,392 271,080 Gross sale of electric energy 153,269 146,295 Use of transmission system 86,023 69,349 Donations and subventions - CCC 128,388 134,833 Other operating revenues 4,361 11,113 597,433 632,670 DEDUCTIONS TO OPERATING REVENUE Fossil fuel account (23,071) (8,076) Global reversion reserve - RGR (7,303) (14,907) Taxes and social contributions on revenue (41,150) (70,602)

(71,524) (93,585) NET OPERATING REVENUE 525,909 539,085 OPERATING EXPENSES Personnel (55,469) (55,979) Material (10,243) (8,779) Third party services (20,796) (28,846) Fuel for the production of electric energy (143,231) (159,419) Financial compensation for the use of hydro resources (17,276) (17,467) Depreciation and amortization (118,932) (143,948) Energy purchased for resale (77,780) (109,083) Charges on the use of the electric grid (20,263) (13,799) Provision for contingencies (1,578) (453) Others (16,496) (20,030)

(482,064) (557,803) FINANCIAL REVENUE (EXPENSE) Financial operations income 2,766 2,491 Monetary variation – asset 31,032 1,921 Monetary variation – liability (41,852) (50,083) Debt charges (102,606) (100,942) Others 10,712 13,743

(99,948) (132,870) OPERATING RESULT (56,103) (151,588) NON-OPERATING RESULT (3,102) (1,922) Loss for the period (59,205) (153,510) Loss per share - R$ (0.85) (2.22) Note: March 2003 does not record the values of equity method revenue from the months of Feb, and Mar.of Manaus Energia and e Boa Vista Energia

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million March/2003 March/2002 EBITDA 162.8 125.2 EBITDA Margin 31.0% 23.2%

Main Investments R$ Million

Project Generation Transmission Tucuruí 207.5 - Mato Grosso Transmission System - 25.8 Acre/Rondônia Transmission System - 3.1 Pará Transmission System - 10.8 Maranhão Transmission System - 8.2 Amapá Transmission System - 4.2 Total 207.5 52.1 Installed Capacity: 5,941 Mw Energy Sale – MWh

First quarter/2003 First quarter/2002 6,551,000 6,721,000

Main Clients

R$ milhões Mwh R$ milhões Mwh63,9 1.473,1 41,2 1.458,1 51,5 782,2 44,8 741,5 44,7 679,2 39,0 643,8

8,6 116,9 6,3 79,9 6,2 77,1 3,5 64,9 4,9 60,9 3,5 57,6 1,0 12,5 0,9 11,6 0,5 6,6 0,5 6,2 0,1 1,2 - - 2,1 38,9 - -

48,7 1.180,7 48,9 1.344,3 32,1 760,9 32,4 863,6 20,4 520,0 25,3 693,4 21,0 366,0 17,0 326,3

8,7 154,2 7,1 144,8 6,5 108,1 5,3 99,6 5,2 103,5 3,5 85,5

10,5 108,8 7,9 99,7 336,6 6.550,8 287,1 6.720,8 TOTAL

Camargo Correa Metais S/A ALUNORTE - Alumina do Norte do Brasil S/A ABALCO S/A

SIBRA Eletrosiderúrgica Brasileira S/A ALCAN Alumínio do Brasil S/A

ELETROACRE - Companhia de Eletricidade do Acre CELTINS - Companhia de Energia Elétrica do Tocantins Boa Vista Energia S/A

Primeiro trimestre/2003

CEMAR - Companhia Energética do Maranhão CHESF - Companhia Hidro-Elétrica do São Francisco CERON - Centrais Elétricas de Rondônia S/A CEA - Companhia de Eletricidade do Amapá

ALCOA Alumínio S/A

Vale do Rio Doce Energia S/A

BHP - Billiton Metais S/A CVRD - Companhia Vale do Rio Doce

CELPA - Centrais Elétricas do Pará S/A

ALBRÁS - Alumínio Brasileiro S/A

Primeiro trimestre/2002Principais Clientes

30

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Energy Purchased

First quarter /2003 First quarter /2002 R$ Million Mwh R$ Million Mwh

Termo Norte Energia Ltda 36.6 387.1 21.8 276.2 Edelca – Venezuela 11.0 110.8 6.9 99.1 Edelca – Venezuela (*) 8.3 - 5.7 - Total 55.9 497.9 34.4 375.3 (*) According to the Supply contract with EDELCA, Eletronorte is paying by the concept of “cost of construction of the transmission system in Venezuelan territory, necessary for the supply referred to in the Contract”, fixed part of US$ 4,500,000.00, as well as by the concept of "cost of operation and maintenance of the Venezuelan transmission system, necessary for the supply referred to in the Contract”, variable annual part of US$ 800,000.00, corrected once a year, according to the percentage variation of Índice de Preço ao Consumidor (IPC) - Consumer Prices Index of USA. The values are correspondent, proportionally, to the cost for the 1st quarter. Number of employees March/2003 – 2,348 March/2002 – 2,351 Average Tariff - R$/MWh Generation - March/2002 – 40.21 Distribution - March/2002 – 58.68 Eletrobrás’ Participation

COMMON TOTAL ORD. TOTAL SOCIAL CPAITAL 69.673,081 69,673,081 Eletrobrás 68,389,272 68,389,272 98.16% 98.16%

31


Eletrosul EElleettrroossuull R$ thousand

ASSETS MARCH 2003 MARCH 2002

CURRENT ASSETS 554,150 549,832 Available 246,392 142,489 . Cash and Banks 2,250 6,649 . Applications at fixed income fund “Bco do Brasil - extra mercado” 244,142 135,840 Energy accounts to receive – concessionaires and affiliates 199,959 335,971 . Repass from Itaipu/others 155,191 308,348 . Use of electric grid 44,768 27,623 Negotiable credits 53,630 29,529 . Credits of electric energy – Law 8.727/93 42,193 28,600 . Negotiable credit of energy 10,097 . Securities to receive – sale of assets and rights 1,340 929 Other credits 43,118 31,627 . Income to receive fin. operations and other credits 2,544 2,234 . Credits with employees 1,431 1,195 . Credits from services rendered to third parties 1,332 1,489 . Fiscal credits to compensate 24,495 8,966 . Collateral and linked deposits 92 451 , Sale of assets and services in course 11,930 18,829 . (-) Provision for credits of questionable liquidation (3,613) (3,552) . Others 4,907 2,015 Stored material in operation 11,051 10,216 NON-CURRENT ASSETS 568,635 386,389 Negotiable credits 434,290 314,685 . Credits of electric energy – Law 8.727/93 421,927 314,600 . Negotiable credit of energy 5,159 . Titles to receive – sale of assets and rights 7,204 85 Credits of energy in litigation 15,777 . Credit of energy in litigation 10,154 24,329 . (-) Provision for credits of questionable liquidation (10,154) (8,552) Fiscal credits to compensate 103,193 31,061 Compulsory loan and attached deposits 14,517 13,558 Titles and marketable securities 12,666 9,811 Others 3,969 1,497 PERMANENT 1,378,117 1,296,834 Investments 1,937 1,859 . Shareholding Participation/other investments 1,937 1,859 Property, plant and equipment 1,375,785 1,294,494 . In service – Gross 2,290,526 2,160,312,00 . (-) Accumulated depreciation (986,310) (925,030) . In service – Net 1,304,216 1,235,282 . (-) Obligations linked to concession (254) (254) . In course 71,823 59,466 Deferred 395 481 . In amortization 395 481

TOTAL ASSETS 2,500,902 2,233,055

32


R$ thousand MARCH 2003 MARCH 2002

CURRENT LIABILITIES 342,050 432,985 Suppliers - electric energy 144,514 262,689 . Purchased Energy 138,889 257,657 . Transport of power - FURNAS 5,625 5,032 Suppliers - others 22,313 33,406 Payment roll 3,818 3,498 Participation in income or results 5,485 4,804 Loans/financing and debt charges 39,648 9,707 Taxes and social contributions 18,817 20,981 . Social Contribution on net income 3,960 3,051 . Social charges - payment roll 1,253 1,244 . Pasep 881 1,857 . Cofins 1,624 8,570 . Income Tax on net income 10,466 5,556 . Others 633 703 Pension Fund 23,139 38,605 . Administrative expenses 14,533 29,647 . Special retirement complement - SB-40 7,173 6,838 . Additional Contribution 987 790 . Elevation of minimum wage 26 25 . Normal contribution / complementary 420 1,305 Estimated obligations 46,852 9,100 . Provision for payment of interest on capital 40,145 . Payment roll and social charges 6,443 8,797 . Provision for dismissals 145 229 . Others 119 74 Contingency 16,963 16,107 . Working 15,698 16,107 . Civil 1,265 Other obligations 20,501 34,088 . Eletrobrás - RGR 1,626 . Pension fund 12,390 . Others 6,485 34,088 NON-CURRENT LIABILITIES 542,848 207,954 Loans/financing and debt charges 73,879 29,139 Income tax / deferred social contribution 164,103 92,102 Tax contingency 229,340 Legal actions deposit 11,899 Pension fund 75,518 73,207 . Administrative expenses 17,891 . Special retirement complement - SB-40 21,542 21,422 . Actuarial liability from ELOS 20,722 37,862 . Additional contribution 15,344 13,879 . Elevation of minimum wage 19 44 Other obligations 8 1,607 STOCKHOLDERS EQUITY 1,616,004 1,592,116 Capital 279,072 279,072 Capital reserves 965,782 965,782 Income reserves . Legal Reserve 18,408 15,491 . Reserve for investment 170,121 139,893 Advances for future capital increase 94,576 94,576 Accumulated income 68,406 68,406 Result for the period 19,639 28,896


33


STATEMENT OF INCOME - R$ thousand March/2 0 0 3 March/2 0 0 2 OPERATING REVENUES Repass of Itaipu energy - 276,545 Power made available 1,963 1,389 Use of electric grid 87,445 59,977 Other revenues 2,471 1,149

91,879 339,060 DEDUCTIONS FROM OPERATING REVENUE Global Reversion Reserve - RGR (2,343) (1,572) COFINS (2,697) (2,199) PIS/PASEP (1,465) (476) ISS

(2)

(4) (6,507) (4,251) NET OPERATING REVENUE 85,372 334,809 COST OF ELECTRIC ENERGY SERVICE Cost of electric energy purchased for resale - (264,381) Cost of operation (36,150) (29,744) Personnel (11,159) (10,052) Material (1,033) (718) Third party services (2,917) (1,897) Depreciation and amortization (16,827) (15,584) Provision for credits of questionable liquidation - 15 Others (4,214) (1,508) Cost of service rendered to third parties (347) (34) Personnel (316) - Material

(1) -

Third party services (30) (34) (36,497) (294,159) GROSS OPERATING INCOME 48,875 40,650 OPERATING EXPENSE General and administrative expenses (12,132) (10,715) RESULT FROM SERVICE 36,743 29,935 FINANCIAL REVENUE (EXPENSE) Financial application income 11,456 5,691 Monetary variation and arrears in energy sold 22,241 4,610 Income on negotiable energy credits 40,717 11,933 Monetary variation and arrears in energy purchased (20,820) (2,054) Debt charges (2,313) (806) Charges on taxes and social contributions (15,434) (3,283) Others (3,122) (2,469) Interest on capital (40,145) -

(7,420) 13,622 OPERATING INCOME 29,323 43,557 NON-OPERATING REVENUE 44 - NON-OPERATING EXPENSE (419) (427)

(375) (427) INCOME BEFORE TAXES, PARTICIPATION AND REVERSAL OF INTEREST ON CAPITAL

28,948 43,130

Social contribution (2,605) (3,882) 34


STATEMENT OF INCOME - R$ thousand March/2 0 0 3 March/2 0 0 2 Income tax (6,704) (10,352) NET INCOME BEFORE REVERSION OF INTEREST ON CAPITAL 19,639 28,896 Reversion of interest on capital 40,145 - NET INCOME FOR THE PERIOD 59,784 28,896 NET INCOME PER SHARE - R$ 1 1

R$ million March/2003 March/2002

R$ million

EBITDA 53.6 45.5 EBITDA Margin 62.7% 13.6%

Main Investments

Project March/2003 March/2002 - Installation of Transmission System in the South (467 Km of transmission lines in 230 and 500 KV, and Substations with 2,807 MVA)

6.1

22.6 -Others 0.1 (1) 0.1 (2) TOTAL 6.7 22.7

a) Maintenance and Adjustment of Assets, Machinery and Equipment (R$ 125.7 thousand); b) Maintenance and Adjustment of Data and Processing Assets (R$ 46.5 thousand) c) Maintenance of the Electric Energy Transmission System (R$ 444.0 thousand).

a) Maintenance and Adjustment of Assets, Machinery and Equipment (R$ 23.4 thousand); b) Maintenance and Adjustment of Data and Processing Assets (R$ 1.4 thousand); c) Maintenance of the Electric Energy Transmission System (R$ 81.6 thousand).

Energy Sale – MWh First Quarter/2002 – 5,793

Main Clients

Note: (1) Referring to the following projects:

Note: (2) Referring to the following projects:

Client R$ million Eletropaulo 8.5 Cemig 7.4 Cpfl 5.1 Light 4.9 Copel Distribuição 4.2 Celesc 3.0 Elektro 2.8 Piratininga 2.6 Bandeirante 2.5 Coelba 2.5

35


Number of Employees

March/2002 – 1,210

Average Tariff

( 1 ) According to Resolution ANEEL nº 358, of 06/28/2002. ( 2 ) According to Resolution ANEEL nº 244, of 06/28/2001.

Supplier March/2002

R$ million Mw Itaipu 264.3 5,793

March/2003 – 1,294

March/2003(1) March/2002(2) R$ 4,774.74 / MW R$ 3,612.19 / MW

Eletrobrás’ Participation

COMMON

TOTAL COM. TOTAL SOCIAL CAPITAL 42,707,094 42,707,094 Eletrobrás 42,582,422 42,582,422 99.71% 99.71%

36


Eletronuclear EElleettrroonnuucclleeaarr

ASSETS (R$ thousand )

March/2003 March/2002 (Reclassified)

CURRENT ASSETS Cash and banks 5,597 18,959 Marketable securities 7,332 11,412 Concessionaires and affiliates 300,691 287,284 Debtors 44,654 24,277 Stock - Nuclear fuel elements 109,443 68,010 - Stored materials 153,679 69,502 Tax credits 2,499 3,928 Other rights 12,765 13,228

636,660 496,600 NON-CURRENT ASSETS

Stock - Uranium Concentrate 44,767 46,634 - Nuclear fuel elements 106,770 97,831 Service in course – nuclear fuel 123,796 137,272 Tax credits - 122,437 Deferred fiscal assets 102,220 102,221 Collateral and attached deposits 12,421 8,159 Other rights 11,736 11,477

401,710 526,031 PERMANENT Investments 1,265 1,265 Property, plant and equipment Cost minus depreciation and amortization 6,167,742 6,064,542 (-) Obligations attached to concession (47,314) (47,314)

6,120,428 6,017,228 6,121,693 6,018,493

TOTAL ASSETS 7,160,063 7,041,124

37


LIABILITIES March/2003 March/2002 (Reclassified) CURRENT LIABILITIES Suppliers 142,631 66,910 Taxes and social contributions 27,679 21,424 Debt charges 176,185 113,919 Interest over capital increase 155,635 151,837 Loans and financing 475,082 370,167 Fundação Real Grandeza (pension fund)– debt 9,748 7,035 Other obligations 25,078 26,975 1,012,038 758,267 NON-CURRENT LIABILITIES Loans and financing 1,366,837 664,742 Fund for decommissioning 330,284 177,736 Fundação Real Grandeza (pension fund) – debt 114,536 95,067 Fundação Real Grandeza (pension fund) – actuarial provision 40,917 37,935 Nucleos – actuarial provision 70,344 Provision for legal contingencies 50,955 45,772 Other obligations 1,088 2,887 1,974,961 1,024,139 STOCKHOLDERS’ EQUITY Up-dated realized capital 507,002 507,002 Capital reserves 1,542,070 2,057,090 Revenues reserves - 276,919 Accumulated profit (95,789) 331,481 1,953,283 3,172,492 Resources for future capital increase 2,219,781 2,086,226 4,173,064 5,258,718 TOTAL LIABILITIES 7,160,063 7,041,124

38

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 (R$ thousand )

STATEMENT OF INCOME March/2003 March/2002 OPERATING REVENUES (Reclassified)

Supply of electric energy 193,593 162,439 Engineering services Revenue from executed services 169 305 Cost of rendered services (112) (273) 57 32 Deductions to operating revenues Taxes and contributions over sales (8,862) (5,765) Global reversion reserve (5,084) (4,141) (13,946) (9,906) Net operating revenue 179,704 152,565

COST OF ELECTRIC ENERGY SERVICE Cost of operation Personnel 27,315 20,914 Material 6,196 2,920 Raw material – consumption of fuel 28,912 22,277 Third party services 32,475 17,511 Depreciation and amortization 42,616 42,587 Quotes for decommissioning 15,847 6,913 Other costs 6,034 4,579 159,395 117,701 Gross operating profit 20,309 34,864 OPERATING EXPENSES General and administrative expenses 14,293 8,533 Other operating expenses 714 732 15,007 9,265 Result from service 5,302 25,599

FINANCIAL REVENUE (EXPENSE) Debt charges (80,411) (58,158) Monetary variation – liability (38,289) 7,225 Currency variation – decommissioning 17,510 (119) Others 328 2,948 (100,862) (48,104) Operating Result (95,560) (22,505) Net non-operating expense (229) (319) Net loss for the period (95,789) (22,824)

39

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million March/2003 March/2002

Main Investments

R$ million

EBITDA 47.9 68.2 EBITDA Margin 26.7% 44.7%

Project First quarter/2003 First quarter/2002 ANGRA I 2.9 4.1 ANGRA II 13.0 14.2 ANGRA III 12.8 8.8 OTHERS 3.8 3.0 TOTAL 32.5 30.1

Energy Sale - MWh

Main Clients

Number of employees

March/2002 – 1,928

Average Tariff – R$/MWh

March/2002 – 64.90 Eletrobrás’ Participation

First

quarter/2003 First

quarter/2002 3,114,918.961 2,523,751.351

Client Volume (Mwh) R$ million FURNAS 2003 3,114,918.961 194.4 FURNAS 2002 2,523,751.351 163.8

March/2003 – 1,902

March/2003 – 62.40

COMMON

PREFERED TOTAL COM. PREF. TOTAL SOCIAL CAPITAL 3,957,573,367 1,112,443,603 5,070,016,970 Eletrobrás 3,950,436,411 1,096,474,999 5,046,911,410 99.82% 98.56% 99.54%

40


CGTEE

CCGGTTEEEE

ASSETS (R$ thousand ) March/2003 March/2002

CURRENT ASSETS Cash and banks 1,025 873 Open market operations 156,823 116,562 Concessionaires 31,729 31,663 Taxes to recover 13,214 5,979 Acquisition of fuel to recover - CCC 3,282 1,095 Stored material 15,268 5,607 Expenses paid in advance 5,948 5,504 Others 1,562 1,404

228,851 168,687 NON-CURRENT ASSETS

Taxes to recover 8,585 8,619 Deposits linked to legal actions 4,075 2,477 12,660 11,096 PERMANENT Property, plant and equipment In operation 491,744 565,453 Under work 6,563 2,743 498,307 568,196

TOTAL ASSETS 739,818 747,979

41


LIABILITIES (R$ thousand )

March/2003 March/2002 CURRENT Suppliers 31,126 35,382 Payment roll 1,553 1,457 Taxes and social contributions 2,285 2,341 Loans and financing 0 0 Consumer charges to collect 785 609 Estimated obligations 3,305 2,666 Provision for stimulated retirement 2,454 2,602 Provision for contingencies 3,701 4,281 Provision for actuarial liability 2,296 2,276 Others 1,238

801 48,743 52,415 NON-CURRENT LIABILITIES

Provision for stimulated retirement 6,749 7,777 Provision for actuarial liability 10,683 10,683 17,432 18,460 STOCKHOLDERS EQUITY Up-dated accomplished capital 868,721 868,721 Capital Reserves 4,436 4,436 Accumulated losses (199,514) (196,053)

673,643 677,104 TOTAL LIABILITIES 739,818 747,979

42


STATEMENT OF INCOME (R$ thousand) March/2003 March/2002

OPERATING REVENUE Electric energy supply 42,415 41,299 Fossil fuel account - CCC 13,347 12,921 Other revenues 2 91 55,764 54,311 DEDUCTIONS FROM OPERATING REVENUE Global Reversion Reserve (957) (958) Taxes and contributions on revenue (2,212) (1,979) (3,169) (2,937)

Net operating revenue 52,595 51,374 OPERATING EXPENSES

Personnel (7,679) (7,042) Material (1,300) (1,725) Third party services (3,971) (2,815) Fossil fuel account - CCC (15,562) (12,961) Electric energy purchased for resale (4,733) Charges on the use of electric grid (162) (143) Depreciation and amortization (20,172) (20,693) Other expenses (3,143) (2,902) (51,989) (53,014) FINANCIAL REVENUE

Financial operations income 8,282 4,184 Interest and fines 560 224 8,842 4,408 FINANCIAL EXPENSE Debt charges (75) Provisional contribution on financial movements (488) (318) Taxes and contributions on financial revenue (411) (161) Others financial expenses (5)

(904) (554)

Financial result 7,938 3,854 Operating Result 8,544 2,214

NON-OPERATING REVENUE 4 4 NON-OPERATING EXPENSE

Non-operating Result 4 4 PROVISION OVER RESULT FOR THE PERIOD Social Contribution (244) (388) Income Tax (1,345) (1,072) (1,589) (1,460) Net Income for the period 6,959 758 Income per 1000 shares 0.008 0.001

43


Main Investments R$ Million Project First quarter/2003 First quarter/2002

Maintenance of electric energy generation systems

2,654,958,74

-

Installation of Thermal Power Unit Candiota III 3,056,416,01

2,104,180,36

Study for transformation of Nutepa to natural gas 252,668,01

5,507,75

Maintenance and adjustment of information machinery 312,654,96

336,344,71

Maintenance and adjustment of properties -

-

Maintenance and adjustment of assets 43,953,79

43,953,79 Energy Sale

First quarter /2003 First quarter /2002 R$ MW R$ MW

14,820,568,54 267,679,103 14,949,156,67 303,978,480 Main Clients Client First quarter / 2003 First quarter / 2002 Volume (MW) R$ million Volume (MW) R$ million CEEE 128,010,984 7,230,717.49 152,429,788 7,491,087.69 AES-Sul 69,834,000 3,794,922.49 75,744,346 3,729,317.70 RGE 69,834,119 3,794,928.57 75,744,346 3,729,317.70 Number of employees March/2003 – 476 March/2002 – 498

44

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Average Tariff – R$ First quarter /2003 – 55.37 First quarter /2002 – 49.18 Eletrobrás’ Participation

COMMON TOTAL COM. TOTAL SOCIAL CAPITAL 1,126,947,767 1,126,947,767 Eletrobrás 1,126,273,715 1,126,237,715 99.94% 99.94%

45


Lightpar LLiigghhttppaarr

By the time of publishing of this report the 1st quarter financials of Lightpar were not available. We will make them available as soon as possible. The timetable for disclosure of Lightpar’ financials are conditioned to the outcome of facts, widely noticed, regarding Eletronet’s business, as follows.

Subsidiary companies Furnas, Chesf, Eletrosul, Eletronorte and Lightpar entered into the business of transmission of information signs, using the transmission grid owned by the controlled companies.

To make such project viable, Eletrobrás system has identified the need of association with private partnership, in order to be the intermediate, on behalf of the concessionaires, and under the orientation of the companies, aiming at their business interests by the use of their structures, by the private partner.

Lightpar was created on January 29, 1996, according to Law 9.163, dated December 15, 1995, originated from the split of Light – Serviços de Eletricidade S.A., and was identified as a company of the ELETROBRÁS System, holder of a legal structure suitable for its purposes.

So, Lightpar participates as minority partner in the capital of Eletronet, a special purpose company created to make the exploration of transportation of signs viable.

As representative of the interests of concessionaire companies controlled by ELETROBRÁS, Lightpar passes on the income of the business to the companies, and being entitled only a remuneration for the administration and reimbursement of expenses involved in the business. Lightpar, starting from 09/20/2002, according to decision of the Shareholders Meeting, assumed the administration of Eletronet, due to the indebtedness of majority shareholder AES Bandeirante Empreendimentos Ltda., holder of 51% of the capital, in the payment of the monetary correction of the fourth part of the capital. The Administration Council of Eletronet, gathered in extraordinary meeting held 03/18/03 and concluded on 03/27/03, and confirmed on 04/02/03, has decided for the assumption of bankruptcy of the company and announced an Extraordinary Shareholders Meeting to decide on the subject.

The Extraordinary Shareholders Meeting of Eletronet, started on 04/24/03 and ended 04/25/03, approved the assumption of bankruptcy and authorized the Administrators to take the necessary legal measures.

46

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Eletrobrás’ Participation

COMMON TOTAL COM. TOTAL SOCIAL CAPITAL 10,390,846,695 10,390,846,695 Eletrobrás 8,480,196,384 8,480,196,384 81.61% 81.61%

47


TEMPORARY INNVESTMENTS – MAIN RESULTS TTEEMMPPOORRAARRYY IINVVEESSTTMMEENNTTSS –– MMAAIINN RREESSUULLTTSS

CERON CCEERROONN

ASSETS (R$ thousand) MAR/ 03 MAR/ 02

CURRENT ASSETS Cash and banks 3,728 5,648 Open market operations 473 466 Consumers 164,733 157,816 Debtors 446 497 (-) Provision for Credits of questionable liquidation (57,710) (55,450) Purchase of fuel - on the account of CCC 5,289 6,215 Services in course 1,007 1,026 Taxes to be compensated 999 1,277 Stored materials 3,448 4,429 Social tariff for low income consumers 1,453 1,453 Expenses paid in advance 89 93 Other Credits 2,719 2,032

126,674 125,502 NON-CURRENT ASSETS Consumers 85,498 84,075 Collateral and linked deposits 14,412 14,927 Credits to be recovered 378 378 Compensation account of the Variation of values of items from Part "A" - CVA

532 532

Other Credits 5,136 4,776 105,956 104,688

PERMANENT Investments 17,705 17,705 Net property, plant and equipment 164,083 163,995

181,788 181,700 TOTAL ASSETS 414,418 411,890

48


LIABILITIES (R$ thousand) MAR/03 MAR/02

CURRENT LIABILITIES Suppliers 23,357 23,310 Payment roll 246 260 Debt charges 0 1 Taxes and social contributions 56,439 54,791 Loans and Financing 33,370 23,074 Estimated obligations 2,832 2,593 Penalties 236 348 Social tariff for low income consumers 917 985 Regulatory taxes 4,261 4,246 Others 2,881 3,215

124,539 112,823 NON-CURRENT LIABILITIES Suppliers 0 0 Loans and Financing 697,758 697,882 Provision for Contingencies 37,042 37,109 Taxes and social contributions 13,885 13,963

748,685 748,954 STOCKHOLDERS EQUITY Social Capital 362,732 362,732 Capital Reserves 46,317 46,288 Accumulated losses (978,135) (969,187)

(569,086) (560,167) Resources for future capital increase 110,280 110,280

(458,806) (449,887) TOTAL LIABILITIES 414,418 411,890

49


STATEMENT OF INCOME (R$ thousand)

MAR/03 MAR/02

GROSS OPERATING REVENUE Electric energy supply 78,794 50,855 Other revenues 18,164 12,717

96,958 63,572 DDEDUCTIONS FROM OPERATING REVENUE

ICMS on electric energy sold (12,494) (8,350) COFINS (2,783) (1,621) PIS / PASEP (1,481) (891) Global Reversion Reserve (954) (636)

(11,498) NET OPERATING REVENUE 79,246 52,074

Fuel for production of electric energy

OPERATING EXPENSE

Personnel (7,797) (5,170) Material (990) (501) Third party services (6,466) (4,364)

(13,185) Fossil fuel account (2,098) Electric energy purchased for resale (21,950) Depreciation and Amortization (2,866) Constitution /Reversion of Operating provisions 1,566 3,826 Rents (276) (177) Others (1,742) (1,269)

(75,271) (47,008) FINANCIAL REVENUES 8,047 5,416 FINANCIAL EXPENSES (40,331) (29,836) (32,284) (24,420)

OPERATING RESULT (28,309)

NON-OPERATING REVENUES 66 59

LOSS FOR THE PERIOD (28,243) (19,295)

(17,712)

(19,722) (1,352)

(33,447) (4,299)

(19,254)

50


First quarter /2003

Main Investments R$ thousand

Projects First quarter /2002 Recuperation generation park 142 156 Installation of Transmission System 877 213 Amplification of Dist. urban grid 2,647 472 Maintenance of assets 146 28 Recuperation of Data Assets 549 71 Amplification of Luz no Campo Grid 508 1,816 Meters - 2951

5,707 Total 4,869 Installed Capacity: 580 Mw Energy Sale MWh

Client First quarter /2003 First quarter /2002 Residential 125,093 117,024 Commercial 71,612 62,249 Industrial 48,053 41,278 Rural 22,917 17,287 Public Power 22,196 17,562 Public Lightning 9,589 9,256 Public Service 8,486 7,498 Self Consumption 585 580 Total 308,531 272,734 Main Clients – March/2003

Client Volume (Mwh) R$ Prefeitura Municipal P. Velho 529,599 79,585.33

505,800 87,054.48 Frigorifico Novo Estado 472,500 65,372.55 Irmãos Gonçalves Com, Ind. 466,800 79,807.84 CAERD S.A 449,280 65,182.98

381,600 71,571.38

373,200 71,739.04 Lammy Ind. Madeira Ltda 358,080 71,400.86

62,405.71 Frigorifico Tavares

719,800.97

Estanho de Rondônia S/A

Centro Gestor e Op. Do Sistema Prop. Censipam Gramazon - Granitos Ltda

Cesbra S.A 342,720 313,920 65,680.80

Total

51


R$ thousand Suppliers First quarter /2003

Energy billed

First quarter /2002 16,084

Guascor 7,471 4,848 Eletrogóes 1,534 1,314 Eletrossol 569 273

522 438 Eletron 706 544 Rovema 622 503 Castaman Ltda 325 395 Altoé 149 114 Ruttman 24 13 Total 34,040

Eletronorte 22,118

Cassol Ltda

24,526 Number of employees

Average Tariff – R$/Mwh

March 2003 – 509 March 2002 - 516

March 2003 – 208.58 March 2002 – 176.14

Eletrobrás’ Participation

TOTAL

Eletrobrás 99.96% 99.96%

COMMON TOTAL COM. SOCIAL CAPITAL 638,409,078,878 638,409,078,878

638,179,985,304 638,179,985,304

52


EEELLLEEETTTRRROOOAAACCCRRREEE

R$ thousand

ASSETS Mar/03 Mar/02

CURRENT ASSETS 56,877 51,934 Cash and banks 4,168 3,135 Consumers 29,453

61 26,773

Resellers 50 Debtors 21,820 9,960 Taxes to recover 436 9,899 Affiliates and Controlled - Eletronorte

21323

Other Debtors 61 61 Other Credits 13,335 6,402 Provision for credits of questionable liquidation

(15,624) (724)

Stored material 1,049 864 Others 2,615 5,474 NON-CURRENT ASSETS 2,152 50,527 Affiliates and Controlled 21,323 Marketable securities 159

624 260

124 Deposits linked to legal actions 727 443 Tax credits 28,626 Debtors 382 Expenses paid in advance Others 11 PERMANENT 92,618 88,861 Investments 22,571 22,604 Property, plant and equipment 70,047 66,257 In Service 56,990 51,889 Under Course 13,057 14,369

T O T A L ASSETS 151,647 191,322

53


R$ thousand

Mar/03 Mar/02

CURRENT LIABILTIES 46,605 45,242 Suppliers 17,548 10,655 Payment roll 55 34 Debt charges 331 Taxes and social contributions 16,004 23,133 Loans and financing 4,028 1,423 Creditors 86 317 Estimated obligations 459 506 Other obligations 3,354 4,464

Provisions 5,071 4,379

NON-CURRENT LIABILITIES 91,691 78,498 Suppliers 6,575 8,036 Taxes and Social Contributions 128

52,934 32,054

1,846 Loans and Financing 36,801 Obligation linked to service concession 31,814

STOCKHOLDERS EQUITY 13,351 67,583 Capital 64,590 64,590 Capital Reserve 2,059 1,765 Resource for capital increase 71,982 69,867 Accumulated Income (Loss) (125,280) (68,639) T O T A L LIABILITES 151,647 191,322

LIABILITIES

54


R$ thousand

STATEMENT OF INCOME Mar/03

23,990

Taxes and Soc. Contrib. on ICMS

29,147

1,562 11,414

Electric energy purchased for resale 9,919 Depreciation and Amortization 1,127

-

Net Income (Loss)

Mar/02

OPERATING REVENUE 36,114 26,434 Supply of electric energy 20,470 Other Revenues 12,124 5,965 DEDUCTIONS FROM OPERATING REVENUE (6,967) (5,724) Taxes and Soc. Contrib. on PASEP (596) (172) Taxes and Soc. Contrib. on COFINS (1,083) (793)

(5,102) (4,462) Global Reversion Reserve

28,288 1,792 254

734 - 689 307 490 (1,729) 154 43

(372)

(61) (870) 5 (13) (18) (888)

(186)

(1,293)

(298) Net operating revenue 20,710 OPERATING EXPENSE 20,472 Personnel 1,576 Material 187 Third party services 2,073 Fuel for the production of electric energy 5,988

8,177 987

Operating Provision 1,049 Reversal of operating provisions (487) Fossil fuel account - C.C.C. 248 ICMS losses 674 Others (790) FINANCIAL REVENUE (EXPENSE) 460 Financial applications income 12 Arrears in energy sold (11) Arrears in energy purchased (252) Debt charges (888) Monetary Variations (111) Others (551) Operating Result 7 NON-OPERATING REVENUES (558) NON-OPERATING EXPENSES (550) Non-operating result -

(1,102)

55

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million March/2003 March/2002 EBITDA 1.2

5.9%

R$ million Project First quarter /2003

Installation of Distribution Urban grid Maintenance of assets 0.09

2.0 EBITDA Margin 6.8%

Main Investments

First quarter /2002 1.35 0.38

0.44

Installation of Rural Distribution System 1.03 0.46 TOTAL 1.56 2.19 Energy Sale – MWh ( Direct sale + Resale of energy)

First quarter /2003 First quarter /2002

93,027 Main Clients (first quarter /2003)

Client Volume (MWh) Supermercado Araújo Imp. Exportação 571

Frigorífico Vale do Rio Acre Ltda 462 0.093 Supermercado Araújo Imp. Exportação 384 0.081 Supermercado Gonçalves D&P Comercial Ltda

351 315 278

0.064 0.084

Rio Branco Refrigerantes 272 256 0.055

0.053

Suppliers First quarter /2003 First quarter /2002

R$ million MWh R$ million MWh 108,112 5.30

GUASCOR 3.55 31,096 2,.8 28,886

Number of employees March/2003 – 203

March/2002 - 207

92,499

R$ million 0.116 0.092

Banacre

0.072

Delegacia da Receita Federal 0.061

Infraero 465

Veneer Lumber do Brasil Ltda 247

Energy Purchased

ELETRONORTE 6.55 99,578

56

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Supply Average Tariff – R$/MWh

COMMON PREF.

SOCIAL CAPITAL 38,551,566,457 14,565,254,245 53,116,820,702 Eletrobrás 36,755,528,692 12,796,536,592 49,552,065,284 95.34% 87.86% 93.29%

Until March/2003 – 198.86 (without ICMS) Until March /2002 – 175.06 (without ICMS)

Until March /2003 – 253.82 (including ICMS) Until March /2002 – 223.30 (including ICMS)

Eletrobrás’ participation

PREFERRED TOTAL COM. TOTAL

57


CCCeeeaaalll R$ thousand

MARCH ASSETS 2003 2002 CURRENT Cash and banks 1,446 5,925 Consumers and resellers 149,723 114,495 Debtors 3,990 861 (-) Provisions for questionable debtors (47,083) (35,558) Other Credits

Others

4,415 2,350 Low income 17,911 - Stored material 3,441 5,332 Payments made in advance – Part A 3,028 -

8,801 1,338 145,672 94,743 NON-CURRENT ASSETS Consumers 44,134 Compulsory Loan 160 Collateral and attached deposits 15,396 Deferred income tax and social contribution 110,501 71,127

Securities and marketable values - Payments made in advance – Part A 3,302

55,023 160 11,779

9,858 -

Others 1,353 848 148,795

Property, plant and equipment

Investments

532,897

174,846 PERMANENT

133 133 292,061 289,226 292,194 289,359 612,712

TOTAL ASSETS

58

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ thousand

2003

38,868 85,659

Payment roll 2,241 1,579 Debt charges 244 1,481 Taxes and social contributions 28,729 11,377 Loans and financing 15,307

15,998 1,764

3,464

17,201 24,483 24,078 203,950 192

4,013 6,328 316,891 259,031

Special Obligations 47,996

STOCKHOLDERS EQUITY

60,486

126,699 93,435 612,712 532,897

MARCH LIABILITIES 2002

Suppliers CURRENT

13,749 Estimated obligations

Fiscal charges

121,126

3,986 3,625 Provision for fiscal, civil and labor contingencies 15,599 Consumer charges to collect 2,821

2,105 - Other obligations 12,283 139,753

NON-CURRENT LIABILITIES Suppliers - free energy

Other obligations

Taxes and social contributions 5,441 Loans and financing 290,236 Advances -

40,678 364,887 299,709

Up-dated accomplished capital 218,393 218,393 Resources for increases 515 Accumulated losses – Previous fiscal years (136,098) (111,257) Incomes – Present fiscal year (16,082) (14,216) TOTAL LIABILITIES

59


R$ thousand MARCH

2002 STATEMENT OF INCOME 2003 OPERATING REVENUES Supply of electric energy 97,618 72,226 Gross sale of electric energy 440 Other revenues 837 98,895 73,547 Deductions from Operating Revenues

(1,262) Taxes and Contribution on Revenue (22,788) Other charges (3,057) (18,349) Net Operating Revenue 55,198 OPERATING EXPENSE Personnel (12,186) Material (932) Third party services (6,051) Fossil fuel account (4,025) Charges on the use of electric grid (5,499) Electric energy purchased for resale (32,879) Depreciation and amortization (4,604) Net provisions (2,652) Other expenses 873 (67,955) OPERATING RESULT 3,833 FINANCIAL REVENUES (EXPENSES) Financial operations income - Monetary variation and arrears of energy sold 1,137 Debt charges (6,174) Monetary and currency variations (14,526) Other charges – net

524 797

(1,750) (15,933) (666)

(27,107)

71,788 (10,366) (1,004) (3,504) (1,984) (5,108) (28,050)

(2,933) (60,400)

618 (4,770) (6,638)

(184) 1,760

(14,216)

Global Reversion Reserve

(4,434) (3,017)

(5,202)

(16,082)

(19,747) (9,030) NON-OPERATING RESULT (168) 16 Result before taxes (16,082)

Net loss for the period (14,216)

60

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million March/2003 March/2002

11.8% (1.4%)

Energy Sale – initial contract

March/2003 March/2002 KWh R$ million KWh

Chesf 691,861,975 620,685,119 24.47 5,882,250 0.33 7,843,000 0.37

Energipe 6,945,750 0.44 0.44 Total 637,789,119 25.28

Energy sold – MWh

March/2003 March/2002 Residential 167,123 129,413 Industrial 111,532 100,847

93,823 75,964 44,972 24,823 22,575 17,635 28,982 24,139 32,759 30,282 929 780 502,695 403,883

Installed Capacity – 1,173,198 MW Number of employees

March/2003 – 961 March/2002 - 948

Average Tariff – R$/MWh March/2003 – 180.06

EBITDA 8.4 (0.8) EBITDA Margin

Suppliers R$ million

21.01 Celpe

9,261,000 704,689,975 21.78

Commercial Rural Public Power Public lightning Public service Self consumption Total

March/2002 – 173.83

61


75.16%


COMMON TOTAL COM. PREF. SOCIAL CAPITAL 347,349,691 353,327,649

Eletrobrás 259,954,821 265,575,428 74.84% 94.02%

PREFERRED TOTAL

5,977,958 5,620,607

62


Ceppisa

ASSETS R$ thousand

March/2003 March/2002

3,718 3,945

68,879 53,527

39,872 25,392

112,469 82,864

NON-CURRENT ASSETS 61,563 139,538

PERMANENT

Investments 146 146

Net properties 239,350 250,796

239,496 250,942 TOTAL ASSETS 413,528 473,344

CCeepiissaa

CURRENT

Cash and banks

Accounts to receive

Others

63


LIABILITIES

CURRENT March/2002

Suppliers 72,169

13,923 9,360

106,690 52,861

Others 48,561

222,320 182,951

Loans and Financing 276,652

Others 143,156 142,310

R$ thousand

March/2003

Taxes and Contributions

Loans and Financing

64,873

NON-CURRENT LIABILITIES

159,214

STOCKHOLDERS EQUITY (228,600) (11,131) TOTAL LIABILITIES

36,834

419,808 301,524

413,528 473,344

64


(11,366) (10,396)

(53,896)

March/2003

66,837

(17,905)

48,281

Personnel

Material / Third party service (6,436) (5,515)

Depreciation and amortization

(15,157)

RESULT FROM SERVICE

Financial Expense (13,407)

(18,112)

OPERATING RESULT (16,401)

(105)RESULT FROM THE PERIOD (16,870)

STATEMENT OF INCOME - R$ thousand

March/2002

OPERATING REVENUES

Sale of energy and others 61,677

Deductions

Net revenue

(13,396)

48,932 OPERATING EXPENSE

Energy purchased (27,349) (24,307)

(4,663) (4,920)

Others (8,758)

(64,971)

(16,039) (5,615)

Financial Revenue 3,506 2,621

(21,618)

FINANCIAL RESULT (10,786)

(34,151)

Non-operating result (469) (34,256)

65

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million

(23.2%) (1.4%) Main Investments

R$ million March/2002

Regularization of Low income Consumers 0.866

Regularization of Low income Consumers

Luz no Campo Program 0.531 Acquisition and installation of meters 0.059 TOTAL 2,182

Energy Sale – MWh March/2003 March/2002

March/2003 March/2002 EBITDA (11.4) (0.7) EBITDA Margin

Project

0.127 0.110

0.296

March/2003 Transmission Line São João/São Raimundo Nonato

0.785

Installed Capacity: 475.25 Mw

107,712 92,516

Main Clients (March/2003)

Volume (Mw) Client R$ million AGESPISA 6,999 ITAPISSUMA 2,491 AMBEV INDÚSTRIA COELHO 1,065 TELEMAR 943 TERESINA SHOPPING 892 0.154 UNIVERSIDADE FEDERAL 469 MURANO 323 HOSPITAL SÃO MARCOS 272 0.038 BAQUITI 13,6

1.15 0.224 0.159 0.104 0.212

0.075 0.060

0.002

1,117

66


Suppliers March/2003 March/2002 R$ million Mwh R$ million Mwh

CHESF 6.340 161,502 7.700 144,830 CELPE 0.074 105 0.063 150 CEMAR 0.010 22 0.010 27 COELCE 0.012 14 0.010 19 TOTAL 6.336 161,643 7.783 145,026

Number of employees March/2003 – 1,201 March/2002 – 1,215 Average Tariff – R$/MWh March/2003 – 151.45 March/2002 – 152.68 Eletrobrás’ Participation

COMMON

PREFERRED TOTAL COM. PREF. TOTAL SOCIAL CAPITAL 25,039,537,135 1,180,830,371 26,220,367,506

Eletrobrás 25,035,223,869 806,807,731 25,842,031,600 99.98% 68.33% 98.56%

67


Ceam CCeeaamm

The quarterly statements of CEAM were not concluded until the date of release of the present information. We will send them, once they become available.

ASSETS February /2003 CURRENT ASSETS

(R$ thousand )

Cash and banks

4,370

Consumers

30,504 Provision for credits of questionable liquidation

(11,782)

Debtors

16,470 Other credits

2,833

Fossil fuel account - C.C.C.

10,933

Stored material

11,433

Collateral for guarantee

93

64,854

NON-CURRENT ASSETS Affiliates, Controlled and Holding

1,832

Other Credits

608

Collateral and linked Deposits

2,492

PERMANENT

Investments

6,283

Property, plant and equipment

227,378

233,661

TOTAL ASSETS 301,007

52

68


(R$ thousand)

LIABILITIES FEBRUARY/2003 CURRENT LIABILITIES

Suppliers 24,881 Payment roll Debt charges 9,407 Taxes and social contribution 1,621 Loans and financing 32,714 Estimated obligations 3,341 Contributions and social charges - REFIS 797 Provision for Contingencies 5,529 Other Obligations 3,053 81,338 NON-CURRENT LIABILITIES Loans and financing 60,523 Contributions and social charges - REFIS 28,918 Others 1,915 Obligations linked to concession 47,624 138,980 STOCKHOLDERS EQUITY Up-dated Social Capital 747,874 Accumulated losses (872,501) (124,627) Resources for capital increase 205,316 80,689 TOTAL LIABILITIES 301,007

(5)

91,356

69


(R$ thousand)

STATEMENT OF INCOME FEBRUARY/2003

OPERATING REVENUE

Supply of electric energy 12,736 Donations and subventions - CCC 33,552 Others 106

40,605

46,394 Deductions from operating revenue Taxes and contribution on revenue (5,632) Global Reversion Reserve - RGR (157) (5,789) Net operating revenue OPERATING EXPENSE Personnel (6,640) Material (1,300) Third party services (3,105) Fossil fuel for electric generation (36,483) Electric energy purchased for resale (759) Depreciation and amortization (2,049) Fossil fuel account (516) Provision (215) Rents (1,727) Others

(306)

(53,100) (12,495) FINANCIAL REVENUE (EXPENSE) Other financial revenues (29) Monetary variation and arrears in energy sold 176 Debt charges (1,066) Others (1,049) Operating Result (13,544)

NON-OPERATING REVENUE 9 NON-OPERATING EXPENSE (3) Non-operating result 6 LOSS BEFORE INCOME TAX AND SOCIAL CONTRIBUTION

(13,538)

Income Tax and social contribution - LOSS FOR THE PERIOD (13,538)

(130)

70

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 R$ million February/2003 EBITDA (10,5) EBITDA Margin (25,7%)

MAIN INVESTMENTS

Maintenance of information assets 25,067

R$

Project March -2003 March -2002 Amplification of Urban Distribution Grid 669,984 2,187,544 Modernization of Generation units 677,549 2,350,301 Maintenance of generation units 258,311 747,430

Amplification of generation units capacity 13,944 0

Installation of controlling system 27,862 60,266

223,000

Total 1,870,650 5,370,608

Installed Capacity : 244 MW Energy Sale

First quarter/2003 First quarter/2002 MWh R$ million MWh

21,575 94,961 15,368 R$ million

80,207 Main Clients March/2003

R$ Mwh CAROLINA IND. M. LTDA 43,625 733QUEIROZ CERÂM. LTDA 164,500 392FRIG. RIO MAR LTDA 75,802 265AGROP. JAYORO LTDA 48,658 264CER. MINERACÃO LTDA 96,090 245IRANDUBA FRIG. DE PESC 55,612 243LITIARA IND.AMAZ. LTDA 39,889 230BRASPOR MADEIR. LTDA 36,857 167CERAMICA R. NEGR. LTDA 50,811 156CERAMICA RIO SOL. LTDA 33,519 154IND. COM. CER. S. ANDRE 48,210 152AMAZONAS ECOPEIXE S/A 31,716 146NOVOA CE.E CONST. LTDA 53,965 130GETHAL AM S/A 58,973 117TOTAL 484,946 3,395

71


March/2002 R$ Mwh

CAROLINA IND. M. LTDA 21,189 84QUEIROZ CERÂM. LTDA 83,305 495

AGROP. JAYORO LTDA 42,060 226CER. MINERACÃO LTDA 66,354 358IRANDUBA FRIG. DE PESC 54,614 287LITIARA IND.AMAZ. LTDA 39,015 220

32,958 166CERAMICA R. NEGR. LTDA 25,812 126CERAMICA RIO SOL. LTDA 28,627 165IND. COM. CER. S. ANDRE 31,363 148

41,969 12428,423 341

GETHAL AM S/A 84,046 3943,607

FRIG. RIO MAR LTDA 78,345 474

BRASPOR MADEIR. LTDA

AMAZONAS ECOPEIXE S/A NOVOA CE.E CONST. LTDA

TOTAL 322,539 Energy purchased March/2003

Suppliers R$ million Mwh 0.657 9.960

2. Hermasa (a) 0.281 2.646 (b) 0.436 4.500

0.157 646 1.390 12.177

Obs.: R$ million, without ICMS March/2002

Suppliers R$ million Mwh 1. Mesa 0.341 6.552 2. Hermasa: 0.664 8.190 3. Eletroacre 0.126 628 Obs.: R$ million, without ICMS

1. Mesa

3. Eletroacre 4. BK Energia

Number of Employees March/2003 – 1,088

March/2002 – 1,116

72

Centrais Elétricas Brasileiras S.A. - Eletrobrás Marketletter – March 2003 Average Tariff – R$/MWh March/2003 173.46


COMMON OTAL COM.

March/2002 144.35

T TOTAL SOCIAL CAPITAL 8,941,618,681 8,941,618,681 Eletrobrás 8,759,399,013 8,759,399,013 97.96% 97.96%

73

Documents

ADR: CAIFY, CAIGY MMAARRKKEETTLLEETTTTEERR … · Infovias business Eletrobrás, after examining all the points related to the request of bankruptcy of Eletronet, and bearing in mind