AES Brasil Energia S A : Dados Econômico-Financeiros

AES Brasil Energia S.A.

Individual and consolidated financial statements as of December 31, 2022, prepared in accordance with accounting practices adopted in Brazil (CPCs) and international accounting standards (IFRS), with the Independent Auditor's Report on the financial statements.

CONTENT

Independent Auditor's Report on the financial statements	1
Statements of Financial Position	5
Statements of Profit or Loss
Statements of Comprehensive Income	7
Statements of Changes In Equity	8
Statements of Cash Flows	9
Statements of Value Added	11
Notes to the financial statements	10
Opinion of the Supervisory Board	29
Officers' Statements on the Financial Statements	105
Officers' Statements on the Independent Auditor's Report	107
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São Paulo Corporate Towers

Av. Presidente Juscelino Kubitschek, 1.909

Vila Nova Conceição

04543-011 - São Paulo - SP - Brasil

Tel: [phone] ey.com.br

A free translation from Portuguese into English of Independent Auditor's Report on Individual Financial Statements prepared in Brazilian currency in accordance with the accounting practices adopted in Brazil and Consolidated Financial Statements prepared in Brazilian currency in accordance with the accounting practices adopted in Brazil and International Financial Reporting Standards (IFRS), issued by International Accounting Standards Board - IASB

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Independent Auditor's Report on the individual and consolidated financial statements

To the Board of Directors and Shareholders of

AES Brasil Energia S/A

São Paulo - SP

Opinion

We have audited the individual and consolidated financial statements of AES Brasil Energia S/A (the "Company"), identified as individual and consolidated, respectively, which comprise the statement of financial position as of December 31, 2022 and the statements of profit or loss, of comprehensive income, of changes in equity and of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

Opinion on the individual financial statements

In our opinion, the individual financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and its individual financial performance and cash flows for the year then ended in accordance with the accounting practices adopted in Brazil.

Opinion on the consolidated financial statements

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2022, and its consolidated financial performance and cash flows for the year then ended in accordance with accounting practices adopted in Brazil and with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report. We are independent of the Company and its subsidiaries in accordance with the relevant ethical principles set forth in the Code of Professional Ethics for Accountants, the professional standards issued by the Brazil's National Association of State Boards of Accountancy (CFC) and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

A key audit matter is a matter that, in our professional judgment, was of most significance in our audit of the financial statements of the current period. This matter was addressed in the context of our audit of the individual and consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on this matter. For the matter below, our description of how our audit addressed the matter, including any commentary on the findings or outcome of our procedures, is provided in that context.

We have fulfilled the responsibilities described in the auditor's responsibilities for the audit of the individual and consolidated financial statements section of our report, including in relation to this matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatements of the financial statements. The results of our audit procedures, including the procedures performed to address the matter below, provide the basis for our audit opinion on the accompanying financial statements.

Recognition and measurement of acquisitions

In the year ended December 31, 2022, the Company completed the acquisition of all the share capital of the companies that comprise the Araripe, Caetés and Cassino Wind Complexes ("Cúbico II Complex"), whose total assets amount to R$ 1,995,364 thousand. The consideration transferred in exchange for control of the acquired companies was R$ 979,042 thousand, paid in full on the closing date, as disclosed in note 1.4. The transaction was recognized as an asset acquisition.

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The monitoring of this matter was considered significant for our audit, due to the complexity of asset acquisition processes, the assessment of the proper accounting treatment of the transaction, combined with a high level of judgment by the executive board in the analysis of assumptions and determination of the fair value of the assets acquired and liabilities taken, which were used as the basis for allocating the consideration for the acquisition.

How our audit addressed this matter

Our audit procedures included, but are not limited to, (i) assessing the adequacy of the accounting practices adopted by the Company for the accounting treatment of asset acquisitions, and understanding of internal controls related to the recognition of assets acquired and liabilities assumed; (ii) reading the documents that formalized the transactions, such as agreements and minutes, and obtaining the evidence that supported the determination of the acquisition date of the asset control; (iii) involvement of our valuation specialists to assist us in analyzing the methodology used to measure the assets acquired and liabilities assumed, the individual allocation to said assets and liabilities, and the reasonableness of the assumptions used and calculations made comparing, when available, with market information; (iv) assessment of the sensitivity analysis on the main assumptions used in the forecasts and the impacts of possible changes in such assumptions and their relevance to the financial statements as a whole; (v) validation of the existence of acquired assets; and (vi) adjustments of the disclosures on the subject in note 1.4 to the individual and consolidated financial statements.

Based on the result of the audit procedures carried out on the acquisition processes, which are consistent with the Company's assessment, we consider that the accounting treatment, the methodology used and the assumptions adopted for measuring the assets acquired and liabilities taken, as well as the respective disclosure in note 1.4 are acceptable, in the context of the individual and consolidated financial statements taken as a whole.

Other matters

Statements of Value Added

The individual and consolidated statements of value added (SVA) for the year ended December 31, 2022, prepared under the responsibility of Company management, and presented as supplementary information for IFRS purposes, were submitted to audit procedures conducted together with the audit of the Company's financial statements. To form our opinion, we evaluated if these statements are reconciled to the financial statements and accounting records, as applicable, and whether their form and content comply with the criteria defined in accounting pronouncement NBC TG 09 - Statements of Value Added. In our opinion, these statements of value added were accordingly prepared, in all material respects, in accordance with the criteria defined in above mentioned accounting pronouncement and are consistent with the overall individual and consolidated financial statements.

Audit of the corresponding values

The Company's financial statements for the year ended December 31, 2021, presented for comparison purposes, were audited by another independent auditor who issued a report on February 28, 2022, with an unmodified opinion on these financial statements.

Other information accompanying the individual and consolidated financial statements and the auditor's report

Management is responsible for such other information, which comprises the Management Report. Our opinion on the individual and consolidated financial statements does not cover the Management Report and we do not express any form of assurance conclusion thereon. In connection with our audit of the individual and consolidated financial statements, our responsibility is to read the Management Report and, in doing so, consider whether this report is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the Management Report, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the individual and consolidated financial statements

Management is responsible for the preparation and fair presentation of the individual and consolidated financial statements in accordance with the accounting practices adopted in Brazil and with the International

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Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free of material misstatement, whether due to fraud or error.

In preparing the individual and consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's and its subsidiaries' financial reporting process.

Auditor's responsibilities for the audit of the individual and consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the individual and consolidated financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Brazilian and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit conducted in accordance with Brazilian and International Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identified and assessed the risks of material misstatements of the individual and consolidated financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's and its subsidiaries' internal control.
• Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Concluded on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast substantial doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the individual and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluated the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the individual and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtained sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the individual and consolidated financial statements.

We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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