19919510 COMMON SHARES EDP – Energias do Brasil SA

As of and for the Three-
Month Period ended
March 31,
14
Variation 1 st
Quarter
2011/2010
As of and for the Year Variation
Ended December 31, 2010/2009
2011 2010 (%) 2010 2009 (%)
(in R$ million, except otherwise indicated)
Adjusted EBITDA (3) ........................................... 460.4 412.2 11.7 1,522.5 1,523.6 (0.1)
Distribution ..................................................... 271.4 251.0 8.1 840.5 811.1 3.6
Generation (2) .................................................... 181.7 159.8 13.7 731.9 709.4 3.2
Trading ............................................................ 15.6 14.4 8.5 22.5 35.5 (36.6)
Transmission ................................................... 1.2 1.1 4.3 4.7 3.9 20.5
Others (1) ........................................................... (9.6) (14.0) (32.0) (77.1) (36.3) 112.4
Adjusted EBITDA margin (4) ............................... 33.2% 34.3% (3.2) 30.2% 33.0% (8.3)
Installed capacity (MW) ..................................... 1,741.0 1,741.0 0.0 1,741.0 1,738.0 0.2
Distributed energy (GWh) .................................. 6,185.0 5,959.0 3.8 23,749.0 21,313.0 11.4
Sold energy (GWh) (5) .......................................... 2,330.0 2,086.0 11.7 8,263.0 8,715.0 (5.2)
(1) Others correspond to intra-segment eliminations, Holding activities and the controlled company Escelsapar.
(2) Excluding the interest of non-controlling shareholders.
(3) Adjusted EBITDA is a non-GAAP measure calculated by the Company and reconciled to our financial statements taking into
account the provisions of CVM Circular No. 01/2007, consisting of net income for the period before income and social contribution
taxes, income from non-controlling shareholders, founder’s shares, financial income (expense), net, reversal of interest on equity
and depreciation and amortization. Adjusted EBITDA is not a Brazilian GAAP measure and has no standardized meaning and our
definition may not be comparable to that used by other companies. We present Adjusted EBITDA because we believe it is a
meaningful measure of performance. Adjusted EBITDA should not be considered alone or as a substitute for net income, as an
indicator of operational performance, or as an alternative to cash flow as an indicator of liquidity.
(4) Adjusted EBITDA Margin is Adjusted EBITDA divided by net operational revenue.
(5) Volume of energy traded by Enertrade (includes related party transactions).
The table below presents the reconciliation of our Adjusted EBITDA for the periods indicated:
Three-Month Period Ended March 31, Year Ended December 31,
2011 2010 2010 2009
(in R$ million, except otherwise indicated)
Net income ........................................................ 187.7 173.0 582.6 695.7
(+) Income and social contribution ................... 103.1 97.2 249.1 248.8
(+) Non-controlling shareholders ...................... 22.2 25.0 136.9 146.9
(+) Founders’ shares (1) ...................................... 2.1 2.4 17.2 15.8
(+) Financial income ......................................... 44.3 26.9 177.0 82.0
(+) Income from equity interest ........................ 2.4 0.6 1.8 0.4
(+) Depreciation and amortization .................... 98.6 87.1 358.0 334.1
Adjusted EBITDA (2) ........................................ 460.4 412.2 1,522.5 1,523.6
Adjusted EBITDA margin (3) .......................... 33.2% 34.3% 30.2% 33.0%
Net margin (4) .................................................... 13.6% 14.4% 11.6% 15.1%
(1) Pursuant to Article 46 of Chapter IV of Brazilian Corporation Law, founders’ shares are negotiable instruments, without par value,
not recognized within capital stock, which may be created at any time by companies (sociedade por ações). The only right granted
to holders of these shares is participation in the annual income of the Company. Our subsidiary that has founders’ shares is Lajeado
Energia S.A.
(2) Adjusted EBITDA is a non-GAAP measure calculated by the Company and reconciled to our financial statements taking into
account the provisions of CVM Circular No. 01/2007, consisting of net income of the period before income and social contribution
taxes, income from non-controlling shareholders, founder’s shares, financial income (expense), net, reversal of interest on equity
and depreciation and amortization. Adjusted EBITDA is not a Brazilian GAAP measure and has no standardized meaning and our
definition may not be comparable to that used by other companies. We present Adjusted EBITDA because we believe it is a
meaningful measure of performance. Adjusted EBITDA should not be considered alone or as a substitute to net income, as an
indicator of operational performance, or as an alternative to cash flow as an indicator of liquidity. For a reconciliation of Adjusted
EBITDA by business segment, see “Selected Financial and Other Information”.
(3) Adjusted EBITDA Margin is Adjusted EBITDA divided by net operational revenue.
(4) Net Margin is net profits divided by net income for the periods presented.