AES Brasil Energia S A : 2Q23 Results Release

Alto Sertão II Wind Complex - BA

2Q23 Results

	Code: AES Brasil
EARNINGS CONFERENCE CALL	Dial-in:
Brazil: [phone] | [phone]
08.04.2023
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, August 3, 2023 - AES Brasil Energia S.A. (AES Brasil Energia or "Company") (B3: AESB3) announces today its results for the second quarter of 2023 ("2Q23") and first six months of 2023 ("1H23") compared to the results of the second quarter of 2022 ("2Q22") and first six months of 2022 ("1H22"). 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.

2Q23 HIGHLIGHTS

• Tucano Wind Complex (322 MW): The project is 99% concluded, with 35 of the 52 wind turbines operating commercially. Tucano generated 216 GWh in 1H23, and is expected to be 100% operational in 3Q23.
• Cajuína Wind Complex Phase 1 (314 MW): More than 97% of the project executed, with 55 wind turbines fully assembled and the first 20 already operating commercially. The complex is expected to be 100% operational by the end of the year.
• Cajuína Wind Complex Phase 2 (370 MW): The progress of works already exceeds 63%, with construction works in an advanced phase and works at the Caju substation concluded. By July 2023, the pre-assembly of 41 of the 65 towers had been concluded. The complex is expected to start commercial operations in 2H23 and should be concluded in 1Q24.
• New record retail performance: By the end of June, the Company had signed agreements with 195 new retail clients, increasing the volume traded by 23.0 MWavg in 1H23. Thus, since its creation in 2019, the retail sale portfolio of AES Brasil has 282 customers in 648 consumer units distributed among all regions of Brazil, totaling energy sales of 67.0 MWavg. As a result, AES Brasil consolidates its position as one of the three leading retailers in Brazil, well-positioned for the opening of the market in 2024.
• New executive officers: On July 5, the Board of Directors elected Rogério Pereira Jorge as Chief Executive Officer and José Ricardo Elbel Simão as Financial and Investor Relations Officer, both for a term of three years from the date of election.

CONSOLIDATED FINANCIAL HIGHLIGHTS - AES BRASIL

Financial Indicators (BRL million)	2Q22	2Q23	Var	1H22	1H23	Var
Net Revenue	620.9	763.0	22.9%	1,297.7	1,549.2	19.4%
Energy Costs¹	(266.9)	(247.6)	-7.2%	(512.1)	(474.0)	-7.4%
Net Margin	354.0	515.4	45.6%	785.6	1,075.2	36.9%
EBITDA	239.4	347.5	45.2%	540.0	745.8	38.1%
EBITDA Margin (%)	38.6%	45.5%	6.9 p.p.	41.6%	48.1%	6.5 p.p.
Net Income	9.3	35.9	286.1%	80.2	96.3	20.0%

1 - Includes industry and transmission charges.

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
2Q23 HIGHLIGHTS	2
CONSOLIDATED FINANCIAL HIGHLIGHTS - AES BRASIL	2
AES BRASIL	4
COMPANY PROFILE	4
OWNERSHIP STRUCTURE ON JUNE 30, 2023	4
PORTFOLIO	5
OPERATING PERFORMANCE	7
CONSOLIDATED GENERATION	7
HYDROPOWER GENERATION	8
WIND POWER GENERATION	9
SOLAR POWER GENERATION	11
COMMERCIAL PERFORMANCE	12
PORTFOLIO CONTRACTING LEVEL	12
RETAIL SALES	13
HYDROPOWER ENERGY BALANCE	13
CONSOLIDATED FINANCIAL PERFORMANCE	14
NET REVENUE AND MARGIN	14
OPERATING COSTS AND GENERAL AND ADMINISTRATIVE EXPENSES	15
EBITDA	17
FINANCIAL INCOME (EXPENSE)	18
NET INCOME	19
DEBT	19
INVESTMENTS	21
MANAGERIAL CASH FLOW	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 nearly 25 years and is a 100% renewable electricity generator. Its diversified portfolio includes an 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
AGV VII (under construction) - 33 MW	Alto Sertão II - 386 MW
Rio Grande do Sul
Cassino - 64 MW

OWNERSHIP STRUCTURE ON JUNE 30, 2023

AES Corp¹	BNDESPar	Eletrobras	Luiz Barsi Filho	Outros
47.32%	6.98%	5.65%	5.01%	35.04%

AES	Tucano & Cajuína	Ventos do Araripe	AES
Operações	(Greenfield Wind)	& Caetés (Wind)	Comercializadora

1 - Indirect interest held by The AES Corp through AES Holdings Brasil and AES Holdings Brasil II.

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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	51% Pipeline¹
4.2 GW	43%	6.8 GW
		64%					51%
Hydro	Wind	Solar	Hydro	Wind	Solar	Hydro	Wind	Solar

1- Subject to changes due to optimizations in projects.

WIND SOURCE

					Installed	Physical
	O&M	End of O&M		Operation	Guar. MME	Contracted			PPA Price1	End of
Wind Complexes	% AES Brasil	Capacity	Start of PPA	End of PPA
Contract	Contract	Startup	(Gross	MWavg	(BRL/ M Wh)	Author.
		(MW)
					MWavg)
OPERATIONAL					1,187.5	540.3	533.1
Alto Sertão II - BA					386.1	181.3	177.1	-	-	-	-
LER 2010	OSA GE	2024 to 2026	100%	2014	167.7	83.2	73.5	Sep/13	Aug/33	249.02	2046
LEN 2011	OSA GE	2025 to 2026	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 GE	2024	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	188.60	2049
Caetés - LER 13	OSA GE	2025	100%	2016	181.9	94.7	94.7	Jan/13	Dec/32	198.90	2049
Cassino - LFA 10	FSA SGRE	2025	100%	2015	64.0	24.2	26.4	Jan/13	Dec/32	279.58	2046
UNDER CONSTRUCTION					1,006.4	497.4	432.0
Tucano	-	-	-	-	322.4	147.1	130.0	-	-	-	-
PPA Unipar I (self-production)	FSA SGRE	2028	50%	3Q23e	155.0	71.5	60.0	Jan/13	Dec/42	-	2055
PPA Anglo	FSA SGRE	2028	100%	3Q23e	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	-	-	100%	-	51.3	29.2	-	-	-	-	-
PIPELINE2					999.5
Tucano	-	-	-	-	260.0	-	-	-	-	-	-
Cajuína	-	-	-	-	739.5	-	-	-	-	-	-

1 - Baseline date: June 2023; 2 - Subject to change due to optimization of projects.

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