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CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

COMPANHIA ABERTA

 

 

 

Centrais Elétricas Brasileiras S.A. - Eletrobras ("Company" or "Eletrobras"), due to the news disclosed to the media, on this date, resulting from the Company's presentation at the Association of Analysts of Investment and Professionals of the Capital Market (APIMEC) in São Paulo, hereby clarifies that the CFO and Investor Relations Officer, when asked by investors about the possibility of dividend payment in relation to the 2016 financial year, regarding the net income reported by the Company in the first half 2016 ("1H16"), explained as follows:

 

 

1. That the net income reported by the Company in 1H16 was strongly influenced by accounting of the RBSE - Existing Basic Network System related to concessions of transmission lines renewed by Law 12,783/2013, due to the regulation of payment terms by MME Ordinance 120/2016;

 

 2. That the net income from the RBSE is a profit not yet realized since the MME Ordinance above-mentioned established that the payment of this credit will only be paid as of 2017, in installments.

 

3. That the Law 6,404/76 establishes in its Article 197 that, in the period in which the mandatory dividend amount, calculated in accordance with by-laws or art. 202 of the Law 6,404/76, exceeds the realized portion of net income for the year, the Annual Shareholders Meeting may, upon proposal of the management bodies, allocate the surplus to a reserve of profits to be realized, and so the equivalent mandatory dividends to such excess only will be paid as this profit was realized thrugh the payment of the RBSE;

 

4. That, on the other hand, the Law 6,404/76 establishes in Article 203 that the constitution of reserve of profits to be realized mentioned above cannot compromise the payment of the minimum dividends provided for in the Comapny by-laws.

5. In the case of Eletrobras, it was explained, so that the reserve of profits to be realized, if appropriate, could not affect the minimum dividend of the preferred shareholders class A and B, as provided for in Article 8 of the Eletrobras by-laws;

 

 

6. That the payment of any dividends by Eletrobras, including those related to preferred shares, is conditional on the existence of profit in the 2016 financial year, and it was highlighted that Eletrobras does not disclose any projection of future results.

 

7. In view of the all above, the Company is available through its Investor Relations Department, to provide all additional information about the object of the matter presented in this Market Announcement.

 

 

 

 

Rio de Janeiro, August 26, 2016.

 

 

Armando Casado de Araujo

CFO and Investor Relations Officer

 

 

 

 

 

 

 

 

 

 

 

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
By:	/S/ Armando Casado de Araujo
	Armando Casado de Araujo Chief Financial and Investor Relation Officer