Balances on January 1, 2008 25 <strong>EDP</strong> - ENERGIAS DO BRASIL S.A. STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY YEARS ENDED DECEMBER 31, 2009 AND 2008 (Amounts expressed in thous<strong>and</strong>s of Reais, unless otherwise indicated) Capital Capital Profit Treasury Other comprehensive Advances for future Note nº reserves reserves shares income capital increase Total 3,182,716 35,348 32 716,551 (24,290) Acquisition own shares (504,404) Cancellation treasury shares (156,244) Net income for the year 388,329 Profit allocation - Legal reserve 18,513 156,244 (18,066) (18,513) Profit retention reserve 114,479 (114,479) Interim dividends (103,061) Proposed dividends (134,210) Balances on December 31, 2008 25 3,182,716 35,348 Sale of treasury shares 61,308 693,299 (372,450) 365,836 Other comprehensive income - Porto <strong>do</strong> Pecém (31,764) Other comprehensive income - Denerge 1,586 - - 3,892,259 (504,404) - 388,329 - - (103,061) (134,210) 3,538,913 Net income for the year 623,827 623,827 Profit allocation - Legal reserve 31,192 (31,192) - Profit retention reserve 296,318 (296,318) - Proposed dividends (296,317) (296,317) Balances on December 31, 2009 25 3,182,716 96,656 1,020,809 (6,614) (30,178) - 4,263,389 See the accompanying <strong>no</strong>tes to the financial statements 427,144 (31,764) 1,586
<strong>EDP</strong> – ENERGIAS DO BRASIL S.A. STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 2009 AND 2008 (Amounts expressed in thous<strong>and</strong>s of Reais, unless otherwise indicated) Parent company Consolidated 12/31/2009 12/31/2008 12/31/2009 12/31/2008 Operating activities (Reclassified) Net income for the year 623,827 388,329 625,137 388,779 Mi<strong>no</strong>rity interest Expenses (revenues) <strong>no</strong>t affecting cash <strong>and</strong> cash equivalents 160,267 102,998 Consumers <strong>and</strong> concessionaires 37,858 66,755 Deferred taxes <strong>and</strong> social contributions, net 60,514 77,264 Current taxes <strong>and</strong> social contributions 2,747 Recoverable taxes <strong>and</strong> social contributions 1,725 835 Depreciation <strong>and</strong> amortization 21,770 148,449 303,960 446,646 Residual value of assets <strong>and</strong> rights of permanent assets written-off 345 (44) 41,727 25,330 Prepaid expenses (9,098) (6,763) Suppliers 31,916 (7,178) Loans, financings <strong>and</strong> debt charges 29,244 12,413 230,335 330,852 Post employment benefits - CVM nº 371 (11,955) (10,490) Provisions for contingencies 26,361 22,145 65,193 53,829 Tariff deferral (16,245) Tariff restitution - adjustment of ratified value 53,048 10,554 Founders' shares 15,772 6,471 Equity interest (638,309) (604,463) 1,742 Investment loss 5,210 3,043 Write-off/provison for loss - tangible <strong>and</strong> intangible fixed assets / investments / deffered (49,066) (49,066) Provision for unsecured liabilities (1,512) (5,302) (1,512) (5,302) Regulatory <strong>and</strong> sector charges 44,545 50,108 Reversal of accounts payable provision (74,764) (74,865) Energy efficiency <strong>and</strong> research <strong>and</strong> development - provision 1,305 Collaterals <strong>and</strong> restricted deposits 32,536 (2,122) Other (541) 3,982 Assets (increase) decrease (62,104) (33,263) 1,560,543 1,522,093 Consumers <strong>and</strong> concessionaires (261,355) (119,283) Recoverable taxes <strong>and</strong> social contributions 3,367 (47,802) (16,741) Inventories (5,422) (4,277) Collaterals <strong>and</strong> restricted deposits (2,266) (393) (2,472) (75,206) Prepaid expenses 44 205 92,038 97,787 Other credits (10,797) (883) (44,039) (18,586) Liabilities (decrease) increase (9,652) (1,071) (269,052) (136,306) Suppliers (2,676) 95,279 41,393 Current taxes <strong>and</strong> social contributions (16,648) (17,192) (31,084) 6,181 Deferred taxes <strong>and</strong> social contributions (2,450) Tariff return (15,862) 3 Estimated liabilities 26 (2,449) 3,334 (2,242) Provisions for contingencies (15,627) (8,324) Other liabilities (6,206) (2,121) (7,884) 39,309 (25,504) (21,762) 28,156 73,870 Cash generated from (used in) operating activities (97,260) (56,096) 1,319,647 1,459,657 Investment activities Treasury shares 427,144 (504,404) 427,144 (504,404) Write-off the investment (204,395) (153,199) (52,364) (153,746) Barter of <strong>subsidiaries</strong>, net of cash (12,104) Additions to investment (950) (781) (785,774) (713,977) Received to permanent assets written-off 2,984 Additions to deferred charges 2,828 Dividends received 490,342 648,415 Write-off the investment 94,624 94,624 Obligation linked to concession 47,880 32,661 Cash generated from (used in) investment activities 806,765 (9,969) (265,506) (1,348,742) Financing activities Related parties (46,424) 10,949 Advance for future capital increase 30,354 Dividends paid (222,140) (203,641) (292,870) Loans, financings <strong>and</strong> debentures - inflows 250,000 1,156,644 Loans, financings <strong>and</strong> debt charges - payments (286,944) (4,713) (1,346,129) Cash generated from (used in) financing activities (555,508) 52,595 (452,001) Increase / (Decrease) in cash <strong>and</strong> cash equivalents 153,997 Cash <strong>and</strong> cash equivalents at the end of the year 233,440 Cash <strong>and</strong> cash equivalents at the beginning of the year 79,443 153,997 See the accompanying <strong>no</strong>tes to the financial statements 33 (13,470) 79,443 92,913 (13,470) 602,140 1,102,022 499,882 602,140 8,030 17,583 (221,967) 461,389 (565,222) (300,187) (189,272) 499,882 689,154 (189,272)