(6 Exhibits: 19 - Debt Profile, 20 - Gross receivables, 21 - Net Account Receivables, 24 - Income Statement, 26 - Balance Sheet, 27- Cash Flow Statement to follow) Exhibit 19 Dec 31, 2003 ------------------------------------- Embratel Participacoes SA Average Maturity Amounts in Cost R$ million % of Debt up to 95,61% 1,0 Hedged and reais short term debt 1,037.0 85.2% CDI year up to US$ + 1,0 Unhedged short term debt 180.3 14.8% 6,43% year Total short term debt 1,217.3 26.5% -------------------------------- ---------- -------- -------- -------- up to 104,22% 4,5 Hedged and reais long term debt 1,462.3 43.3% CDI years up to US$ + 9,4 Unhedged long term debt 1,911.1 56.7% 8,44% years Total long term debt 3,373.3 73.5% -------------------------------- ---------- -------- -------- -------- up to 100,61% 4,5 Hedged and reais total debt 2,499.2 54.4% CDI years up to US$ + 9,4 Unhedged total debt 2,091.3 45.6% 8,23% years up to US$ + 9,4 Total debt 4,590.6 100.0% 5,73% years -------------------------------- ---------- -------- -------- -------- Mar 31, 2004 ------------------------------------- Embratel Participacoes SA Average Maturity Amounts in Cost R$ million % of Debt up to 92,25% 1,0 Hedged and reais short term debt 1,156.9 98.4% CDI year up to US$ + 1,0 Unhedged short term debt 18.3 1.6% 6,73% year Total short term debt 1,175.2 28.5% -------------------------------- ---------- -------- -------- -------- up to 98,42% 4,8 Hedged and reais long term debt 1,262.8 42.8% CDI years up to US$ + 9,2 Unhedged long term debt 1,687.8 57.2% 8,49% years Total long term debt 2,950.6 71.5% -------------------------------- ---------- -------- -------- -------- up to 95,51% 4,8 Hedged and reais total debt 2,419.7 58.6% CDI years up to US$ + 9,2 Unhedged total debt 1,706.2 41.4% 8,60% years up to US$ + 9,2 Total debt 4,125.9 100.0% 5,19% years -------------------------------- ---------- -------- -------- -------- Exhibit 20 Gross Receivables Embratel Participacoes SA R$ million Dec 31, 2003 Mar 31, 2004 Account Receivables Voice Services (Gross) 2,799.3 2,945.4 Data, Telco and Other Services 619.9 596.3 Foreign Administrations 179.3 164.0 Gross Receivables 3,598.5 3,705.6 Allowance for Doubtful Accounts (Balance) (1,926.4) (2,011.3) Net Receivables 1,672.0 1,694.3 ----------------------------------------- ---------------------------- Exhibit 21 Net Account Receivables Embratel Participacoes SA R$ million Dec 31, 2003 Mar 31, 2004 Voice Services (Net) 1,027.9 1,094.1 Current 84.0% 85.3% 1-60 days 12.7% 12.0% 61-120 days 3.4% 2.7% greater than 120 days 0.0% 0.0% -------------------------------------- ------------------------------- Exhibit 24 Embratel Participacoes SA Consolidated Income Statement - Corporate Law Quarter ending --------------------------------------- R$ thousands Mar 31, 2003 % Dec 31, 2003 % Revenues Gross revenues 2,181,691 2,464,253 Taxes & other deductions (472,949) (589,923) Net revenues 1,708,742 100.0% 1,874,330 100.0% Net voice revenues 1,180,942 69.1% 1,306,171 69.7% Domestic long distance 954,684 55.9% 1,094,269 58.4% International long distance 226,258 13.2% 211,902 11.3% Net data communications 455,206 26.6% 425,534 22.7% Local services 9,892 0.6% 82,676 4.4% Other services 62,702 3.7% 59,949 3.2% ---------------------------------------------------------------------- Net revenues 1,708,742 100.0% 1,874,330 100.0% Cost of services (911,289) -53.3% (1,000,257) -53.4% ---------------------------------------------------------------------- Interconnection & facilities (788,902) -46.2% (869,349) -46.4% Personnel (49,543) -2.9% (57,424) -3.1% Third-party services (58,468) -3.4% (55,901) -3.0% Other (14,376) -0.8% (17,583) -0.9% Selling expenses (206,198) -12.1% (202,365) -10.8% ---------------------------------------------------------------------- Personnel (56,881) -3.3% (64,516) -3.4% Third-party services (40,834) -2.4% (50,251) -2.7% Allowance for doubtful accounts (106,153) -6.2% (81,870) -4.4% Other (2,330) -0.1% (5,728) -0.3% G&A expenses (204,226) -12.0% (204,199) -10.9% ---------------------------------------------------------------------- Personnel & Employee profit sharing (44,419) -2.6% (44,654) -2.4% Third-party services (129,265) -7.6% (129,520) -6.9% Taxes (18,260) -1.1% (11,959) -0.6% Other (12,282) -0.7% (18,066) -1.0% Other operating income/(expense) 3,571 0.2% 14,823 0.8% EBITDA 390,600 22.9% 482,332 25.7% Depreciation and amortization (291,590) -17.1% (287,760) -15.4% Operating income (EBIT) 99,010 5.8% 194,572 10.4% Financial income, monetary and exchange variation 47,510 2.8% 47,712 2.5% ---------------------------------------------------------------------- Financial income 51,731 3.0% 61,692 3.3% Monetary and exchange variation (income) (4,221) -0.2% (13,980) -0.7% Financial expense, monetary and exchange variation (77,280) -4.5% (212,864) -11.4% ---------------------------------------------------------------------- Financial expense (115,144) -6.7% (144,372) -7.7% Monetary and exchange variation (expense) 37,864 2.2% (68,492) -3.7% Other non-operating income/(expense) (39,477) -2.3% 95,623 5.1% Net income/(loss) before tax and minority interest 29,763 1.7% 125,043 6.7% ---------------------------------------------------------------------- Income tax and social contribution (12,106) -0.7% (41,818) -2.2% Minority interest (6,989) -0.4% (14,130) -0.8% Net income/(loss) 10,668 0.6% 69,095 3.7% ---------------------------------------------------------------------- End of period shares outstanding (1000) 332,629,361 333,419,064 Earnings per 1000 shares (R$) 0.03 0.21 ---------------------------------------------------------------------- Quarter ending % change ------------------- -------------- R$ thousands Mar 31, 2004 % YoY QoQ Revenues Gross revenues 2,499,757 14.6% 1.4% Taxes & other deductions (607,107) 28.4% 2.9% Net revenues 1,892,650 100.0% 10.8% 1.0% Net voice revenues 1,287,434 68.0% 9.0% -1.4% Domestic long distance 1,084,426 57.3% 13.6% -0.9% International long distance 203,008 10.7% -10.3% -4.2% Net data communications 415,006 21.9% -8.8% -2.5% Local services 136,464 7.2% 1279.5% 65.1% Other services 53,746 2.8% -14.3% -10.3% ---------------------------------------------------------------------- Net revenues 1,892,650 100.0% 10.8% 1.0% Cost of services (1,003,626) -53.0% 10.1% 0.3% ---------------------------------------------------------------------- Interconnection & facilities (842,829) -44.5% 6.8% -3.1% Personnel (60,035) -3.2% 21.2% 4.5% Third-party services (53,908) -2.8% -7.8% -3.6% Other (46,854) -2.5% 225.9% 166.5% Selling expenses (216,155) -11.4% 4.8% 6.8% ---------------------------------------------------------------------- Personnel (63,888) -3.4% 12.3% -1.0% Third-party services (55,591) -2.9% 36.1% 10.6% Allowance for doubtful accounts (93,901) -5.0% -11.5% 14.7% Other (2,775) -0.1% 19.1% -51.6% G&A expenses (238,519) -12.6% 16.8% 16.8% ---------------------------------------------------------------------- Personnel & Employee profit sharing (56,867) -3.0% 28.0% 27.4% Third-party services (150,430) -7.9% 16.4% 16.1% Taxes (16,139) -0.9% -11.6% 35.0% Other (15,083) -0.8% 22.8% -16.5% Other operating income/(expense) 14,031 0.7% 292.9% -5.3% EBITDA 448,381 23.7% 14.8% -7.0% Depreciation and amortization (293,005) -15.5% 0.5% 1.8% Operating income (EBIT) 155,376 8.2% 56.9% -20.1% Financial income, monetary and exchange variation 79,816 4.2% 68.0% 67.3% ---------------------------------------------------------------------- Financial income 75,583 4.0% 46.1% 22.5% Monetary and exchange variation (income) 4,233 0.2% nm nm Financial expense, monetary and exchange variation (201,948) -10.7% 161.3% -5.1% ---------------------------------------------------------------------- Financial expense (143,811) -7.6% 24.9% -0.4% Monetary and exchange variation (expense) (58,137) -3.1% nm -15.1% Other non-operating income/(expense) (1,204) -0.1% -97.0% nm Net income/(loss) before tax and minority interest 32,040 1.7% 7.7% -74.4% ---------------------------------------------------------------------- Income tax and social contribution (19,451) -1.0% 60.7% -53.5% Minority interest (7,981) -0.4% 14.2% -43.5% Net income/(loss) 4,608 0.2% -56.8% -93.3% ---------------------------------------------------------------------- End of period shares outstanding (1000) 332,847,011 Earnings per 1000 shares (R$) 0.01 ---------------------------------------------------------------------- Note: First quarter 2003 income statement was restated to reflect the reclassification of certain expenses related to financial transactions such as taxes (PIS/Cofins on financial income and CPMF) and expenses such as bank expenses and letters of credit costs below the operating line under the financial expense account. This reclassification occurred in the third quarter of 2003. Previously, these expenses were classified either as third party or as taxes both under G&A expenses. Exhibit 26 Embratel Participacoes SA Consolidated Balance Sheet - Corporate Law Mar 31, Dec 31, Mar 31, R$ thousands 2003 2003 2004 Assets Current Assets 2,878,860 4,127,529 3,647,716 Cash and cash equivalents 525,999 1,719,496 1,076,085 Account receivables, net 1,500,861 1,672,037 1,694,333 Deferred and recoverable taxes (current) 490,960 465,719 539,614 Other current assets 361,040 270,277 337,684 Noncurrent Assets 1,530,127 1,603,187 1,535,202 Deferred and recoverable taxes 1,207,762 1,151,696 1,083,910 Legal deposits 280,476 381,561 405,586 Other non-current assets 41,889 69,930 45,706 Permanent Assets 7,974,630 7,237,087 7,177,155 Investments 263,422 39,888 40,958 Net property, plant & equipment 7,599,570 7,194,329 7,033,815 Deferred fixed assets 111,638 2,870 102,382 Total Assets 12,383,617 12,967,803 12,360,073 ---------------------------------- ----------- ----------- ----------- Liabilities and Shareholders`s Equity Current Liabilities 4,265,944 3,966,166 3,792,428 Personnel, charges and social benefits 106,455 87,585 89,362 Accounts payable and accrued expenses 1,626,273 1,822,611 1,783,108 Taxes and contributions (current) 271,000 347,358 396,905 Dividends and interest on capital payable 23,434 95,386 11,691 Proposed dividends and interest on capital 14,254 18,858 698 Short term debt and current portion of long term debt 1,926,630 1,217,256 1,175,247 Provision for contingencies 52,761 73,749 77,718 Actuarial liabilities - Telos (current) 68,209 64,442 66,521 Employee profit sharing provision 38,649 52,107 38,380 Subsidiaries and associated companies 8,065 11,994 4,656 Other current liabilities 130,214 174,820 148,142 Non-current Liabilities 3,036,681 3,769,095 3,329,943 Taxes and contributions 55,516 52,061 51,996 Long term debt 2,643,578 3,373,341 2,950,635 Actuarial liabilities - Telos 310,579 328,803 317,220 Other non-current liabilities 27,008 14,890 10,092 Deferred Income 119,351 135,358 132,994 Minority interest position 231,153 222,382 230,366 Shareholders' Equity 4,730,488 4,874,802 4,874,342 Paid-in capital 2,273,913 2,273,913 2,273,913 Income reserves 1,912,113 2,620,022 2,620,022 Treasury stock (41,635) (19,133) (21,746) Retained earnings 586,097 - 2,153 Total Liabilities and Shareholders' Equity 12,383,617 12,967,803 12,360,073 ---------------------------------- ----------- ----------- ----------- Total borrowed funds 4,570,208 4,590,597 4,125,882 Net debt 4,044,209 2,871,101 3,049,797 Net debt / Shareholder's Equity 0.85 0.59 0.63 ---------------------------------- ----------- ----------- ----------- Total Debt / Trailing Ebitda (last 4 quarters) 3.0 2.5 2.2 Net Debt / Trailing Ebitda (last 4 quarters) 2.7 1.6 1.6 Trailing Ebitda / Financial expense (Does not include monetary and exchange variation) 3.3 3.4 3.3 Trailing Ebitda / Net financial expense (including monetary and exchange variation) 1.0 9.9 6.8 ---------------------------------- ----------- ----------- ----------- Exhibit 27 Embratel Participacoes SA Consolidated Statement of Cash Flow - Corporate Law R$ thousands Mar 31, Mar 31, 2003 2004 Cash provided by operating activities Net income/(loss) - cash flow 10,668 4,608 Depreciation/Amortization 291,590 293,005 Exchange and Monetary (Gains)/Losses (233,325) 27,768 Swap Hedge Effects 152,686 20,183 Minority Interest - cash flow 6,989 7,981 Loss/(Gain) on permanent asset disposal 7,255 10,536 Other operating activities (6,612) (8,107) Changes in current and noncurrent assets and liabilities (279,160) (113,779) Net cash provided by operating activities (49,909) 242,195 ---------------------------------------------------------------------- Cash flow form investing activities Additions to investments/Goodwill 32 (807) Additions to property, plant and equipment (85,734) (133,788) Deferred fixed assets - cash flow - (100,365) Net cash used in investing activities (85,702) (234,960) ---------------------------------------------------------------------- Cash flow from financing activities Loans obtained and repaid (430,417) (495,744) Swap Hedge Settlement 205,067 (47,725) Dividends Paid (31) (101,854) Other financing activities - (5,323) Net cash used in financing activities (225,381) (650,646) ---------------------------------------------------------------------- Increase in cash and cash equivalents (360,992) (643,411) Cash and cash equivalents at beginning of period 886,991 1,719,496 ---------------------------------------------------------------------- Cash and cash equivalents at end of period 525,999 1,076,085 ----------------------------------------------------------------------