EFTA Document EFTA01367049

Amendment #4 Page 620 of 868 thr . (gd Trade receivables are Enemy teence—CCEE/Eletrobras—In the power sector the operations earned 0;1 are Greeted to me reguttory age, y that memos the actwe infamaton on the pciators of produced and constrned power Based on this structure pannrg is made to operate the system walnut interferences or interruptions Power is sold through auclons. agreements, among others This system is reliable and ctontrolit the payments by the players in the market Clamant transacrons—No transactions with (*waive from al instruments were conducted in the years reported Caps management—The obtectrves of the Group in managing its capital are to ensure that tie Group is always capable of providing retisn to its Shawls:10n aid benefits to other slakehoklers, and maintain an adequate Capital Etruria, to reduce this Cold Combined, 12/31/14 12/31/13 Borrowings 983.117 1.02.1.816 Less Cash and Cash eguwalents and short-term nvestments and restricted deposits (219.074) (212.089) Net debt 744.043 810,527 Parent's net rwestrnent 609,395 624,958 Financial leverage rabo—% 122% 130% Other operstional risks Risk of shorts:24ot wind—This risk results from the shortage of wird due to natural faders which is reduced because the NyInd deposits' in Brut are one of the best in theworld, as in addbon to high speed. vivid is considered stable afferent from certain regions in Asia and the United Sates, which are sublect to cyclones. typhoons and otter natural factors Hydrological risks—The power supplied through Ire National IMercornected System (SIN) is mostly generated by hydroelectric power plants As the SIN operates through an optimized shi:ment system, centralized at the National Electric System Operator IONS) each hydroelectric power pant including those owned by the Group is exposed to the existrg hydrological corchtcns both in tre region where it operates arid other Brazilian regcns Worms hydrological conditions we unferthable together with the obligator a delwering the contracted power. Ile Group call be exposed to the power spot market, which would effect as future financial results However, Me Company's total hydroelectric power gererabcn capacity is part of the Energy Relocation Mechanism (MRE), which partly integrates the hydrologcal risk by spreading d across at the pants included in the MRE 19. Insurance coverage The followirg table presents the main values at risk with MOWS nee coverage contracted by the Group Tots Effeedvo Wm Company Insured Item Start End Insured Bahia Guarartee CCT RSCI"agat 05/30/2014 08/30f2015 ANEEL Salvador Guarartee COT Rs 1,217 08/30/2014 oeraor2ois ANEEL Espra Operation risks RS 156.109 059/25/2014 001292015 Ewa Espra Operation rata RS 20.000 0925/2014 0925/2018 Ewe F-300 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058577 CONFIDENTIAL SDNY_GM_00204761 EFTA01367049