AES Brasil Energia S A : 1Q23 Earnings Release

Ventus Wind Complex - RN

1Q23 Results

EARNINGS	Code: AES Brasil
CONFERENCE CALL	Dial-In:
	Brazil: [phone] | [phone]
05.05.2023	USA: [phone] | [phone]
10 a.m. (BRT) / 9 a.m. (EST)	Presentation slides and audio will be
	available at ri.aesbrasil.com.br

São Paulo, May 4th, 2023 - AES Brasil Energia S.A. (AES Brasil Energia and Company) (B3: AESB3) announces today its results for the first quarter of 2023 ("1Q23") compared to the results of the first quarter of 2022 ("1Q22"). Except where stated otherwise, the operational and financial information of the Company is presented on a consolidated basis in millions of Brazilian real, in accordance with Brazilian Corporation Law.

1Q23 HIGHLIGHTS

• Long-termPPA for 77MWavg signed: AES Brasil signed an Energy Purchase and Sale Agreement (PPA) with an excellent credit profile counterparty to supply energy for 15 years starting from July 2024, representing approximately 154 MW of installed capacity. The Project is under development at the Cajuína Wind Complex in the state of Rio Grande do Norte and has fully funded investments.
• Increase in the Level of Contracting in the Portfolio: Thanks to the commercial strategy adopted, the
  Company's consolidated portfolio is fully contracted for 2023 and registered an increase of 7 p.p. in the contracting level for 2024 through 2027.
• Record retailer sales: By the end of April, the Company signed agreements with 120 clients, with volume negotiated of 18.3 MWavg. As a result, AES Brasil ends the period with 207 clients, 571 Consumer Units and 62.3 MWavg of energy sold through retail sales, consolidating its position as one of the three largest retail businesses in Brazil.
• Cajuína Complex Phase 1 (314 MW): More than 86% of the project executed, with the 40 first wind turbines fully assembled and 14 of them being tested. In March, the Caju Substation and the Transmission Line were energized. The commercial operation of the first wind turbines is slated for 1H23. In Phase 2 (370 MW), progress of works already exceeds 40%, with 62% progress in construction works and 95% progress in works at the Caju substation. The complex is expected to start operations in the second half of 2023.

CONSOLIDATED FINANCIAL HIGHLIGHTS - AES BRASIL

Financial Indicators (BRL million)	1Q22	1Q23	Var
Net Revenue	676.8	786.3	16.2%
Energy Costs¹	(245.2)	(226.4)	-7.7%
Net Margin	431.6	559.8	29.7%
EBITDA	300.6	398.3	32.5%
EBITDA Margin (%)	44.4%	50.7%	6,3 p.p.
Adjusted EBITDA2	313.3	409.3	30.6%
Adjusted EBITDA Margin (%)	46.3%	52.1%	5,8 p.p
Net Income	70.9	60.4	-14.9%
Adjusted Net Income3	79.3	67.7	-14.7%

1 - Includes industry and transmission charges; 2 - 1Q22 EBITDA adjusted for biannual maintenance of locks and closing of the acquisition price of the Guaimbê Complex. 1Q23 EBITDA adjusted for reversal of contingent assets and provision of assets related to the sale of AES Inova; 3 - Considers the adjustments made in EBITDA, net of Income Tax/Social Contribution.

To help investors and analysts with their modeling, the Company provides an Excel file with its historical Financial and Operational Dataand a Modeling Guide.

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CONTENTS
1Q23 HIGHLIGHTS	2
CONSOLIDATED FINANCIAL HIGHLIGHTS - AES BRASIL	2
AES BRASIL	4
COMPANY PROFILE	4
OWNERSHIP BREAKDOWN - 03/31/2023	4
PORTFOLIO	5
OPERATING PERFORMANCE	7
CONSOLIDATED GENERATION	7
HYDROPOWER GENERATION	7
WIND POWER GENERATION	9
SOLAR POWER GENERATION	10
COMMERCIAL PERFORMANCE	11
PORTFOLIO CONTRACTING LEVEL	11
RETAIL SALES	12
HYDROPOWER ENERGY BALANCE5	12
CONSOLIDATED FINANCIAL PERFORMANCE	13
NET REVENUE AND NET MARGIN	13
OPERATING COSTS AND GENERAL AND ADMINISTRATIVE EXPENSES	13
EBITDA	14
FINANCIAL INCOME (EXPENSE)	15
NET INCOME	16
DEBT	16
INVESTMENTS	18
MANAGERIAL CASH FLOW	19
REGULATORY SCENARIO	20
ANCILLARY SERVICES	20
RESERVE AND ENERGY	21
MINIMUM SPOT PRICE (PLD)	22
ESG PERFORMANCE	22
GUIDELINES AND COMMITMENTS	22
ANNEXES	25
OPERATIONAL INDICATORS IN THE PERIOD	25
GENERATION PERFORMANCE BY SOURCE	26
AES BRASIL ENERGIA - BALANCE SHEET AND INCOME STATEMENT	27
RESULTS BY SOURCE	28
DEBT	29
ESG INDICATORS	30
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AES BRASIL

COMPANY PROFILE

AES Brasil has been investing in Brazil for almost 25 years and is a 100% renewable electricity generator. The Company has a diversified portfolio, with installed capacity of 4.2 GW in operation and over 1.0 GW under construction (Tucano and Cajuína) for total installed capacity - exclusively renewable - of 5.2 GW.

5.2 GW Installed capacity

	Ceará
	Mandacaru - 108 MW
	Rio Grande do Norte
	Cajuína (under construction) - 684 MW
	Ventus - 187 MW
	Salinas - 50 MW
	Piaui & Pernambuco
São Paulo	Ventos do Araripe (PI) - 210 MW
Caetés (PE) - 182 MW
Hydro - 2,658 MW
Guaimbê - 150 MW	Bahia
Ouroeste - 145 MW	Tucano (under construction) - 322 MW
	Alto Sertão II - 386 MW
Rio Grande do Sul
Cassino - 64 MW

OWNERSHIP BREAKDOWN - 03/31/2023

Controlling	BNDESPar	Eletrobras	Others
Company¹
47.32%	6.98%	6.80%	38.90%

AES	Greenfield	New Wind	AES
Operações	Projects²	3	Comercializadora
Assets

1 - Indirect interest held by The AES Corp through AES Holdings Brasil and AES Holdings Brasil II; 2 - Corporate structuring concluded in 4Q22; 3 - Ventos do Araripe and Caetés Wind Complexes, acquired by AES Brasil in November/2022. Cassino complex is considered in AES Operações.

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PORTFOLIO

Operational Installed	Installed Capacity		Estimated Installed Capacity
Capacity			by Source			Expansion Plan¹
	7%				6%			10%
29%		+1.0 GW under					+1.7 GW			39%
	construction		5.2 GW		Pipeline¹
4.2 GW	43%	51%	6.8 GW
		64%						51%
Hydro	Wind	Solar	Hydro	Wind	Solar		Hydro	Wind	Solar

1- Subject to change due to optimizations of projects.

WIND SOURCE

				Operation	Installed	Physical Guar.	Contracted			PPA Price
										1
Wind Complexes	O&M	% AES Brasil	Startup	Capacity (MW)	MME (Gross	Mwavg	Start of PPA	End of PPA	(BRL/MWh)	End of Author.
				Mwavg)
OPERATIONAL				1,187.5	540.3	533.1
Alto Sertão II - BA				386.1	181.3	177.1	-	-	-	-
LER 2010	OSA	100%	2014	167.7	83.2	73.5	Sep/13	Aug/33	249.02	2046
LEN 2011	OSA	100%	2015	218.4	98.1	103.6	Jan/16	Dec/35	195.76	2047
Ventus - RN				187.0	65.8	58.3	-	-	-	-
LER 2009	FSA	100%	2014	187.0	65.8	58.3	Jul/12	Jun/32	326.51	2045
Mandacaru and Salinas - CE/RN				158.5	64.3	68.4	-	-	-	-
LER 2009	Internal	100%	2014	94.5	39.1	37.0	Jul/12	Jun/32	324.98	2045
LEN 2011	Internal	100%	2014	64.0	25.2	31.4	Jan/16	Dec/35	209.33	2047
New Assets - PI/PE/RS				455.9	228.9	229.4	-	-	-	-
Ventos do Araripe - LER 13	Internal	100%	2015	210.0	110.0	108.3	Jan/13	Dec/32	188.59	2049
Caetés - LER 13	OSA	100%	2016	181.9	94.7	94.7	Jan/13	Dec/32	198.90	2049
Cassino - LFA 10	FSA	100%	2015	64.0	24.2	26.4	Jan/13	Dec/32	282.58	2046
UNDER CONSTRUCTION				1,006.4	497.4	432.0
Tucano			-	-	322.4	147.1	130.0	-	-	-	-
PPA Unipar I (self-production)	FSA	50%	1H23e	155.0	71.5	60.0	Jan/13	Dec/42	-	2055
PPA Anglo	FSA	100%	1H23e	167.4	75.6	70.0	Jan/22	Dec/36	-	2055
Cajuína			-	-	684.0	350.3	302.0	-	-	-	-
PPA Minasligas	-	100%	2023e	45.6	22.9	21.0	Jan/23	Dec/43	-	2055
PPA Ferbasa	-	100%	2023e	165.3	83.7	80.0	Jan/24	Dec/43	-	2055
PPA Copel	-	100%	2023e	11.4	6.1	4.0	Jan/23	Dec/35	-	2055
PPA BRF (self-production)	-	76%	2023e	165.3	84.5	80.0	Jan/24	Dec/38	-	2055
PPA Unipar III (self-production)	-	90%	2023e	91.2	44.2	40.0	Jan/24	Dec/43	-	2055
New PPA		-	100%	2023e	153.9	79.7	77.0	Jul/24	Jul/39	-	2055
Additional Capacity	-	-	-	51.3	29.2	-	-	-	-	-
PIPELINE	2				999.5
Tucano		-	-	-	260.0	-	-	-	-	-	-
Cajuína		-	-	-	739.5	-	-	-	-	-	-

1 - Base date: March 2023; 2 - Subject to change due to optimization of projects.

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