Earnings Releases 3Q21

RESULTS 3Q21

Conference Call

October 27, 2021

(in Portuguese with simultaneous translation into English) 11 AM (Brasília) / 10 AM (NY) / 15 PM (London)

Tel: [phone]

International Participants:

Tel: [phone] | [phone]

São Paulo, October 26, 2021: CESP - Companhia Energética de São Paulo ("CESP"), (B3: CESP3, CESP5 and CESP6) discloses its results for the third quarter of 2021. The information was prepared in accordance with International Financial Reporting Standards ("IFRS") and accounting practices adopted in Brazil, except where stated otherwise.

CONTENTS

3Q21 Results	3
Message from Management	4
Company Profile	6
Generation Complex	6
Operating Performance	7
Commercial Performance	8
Financial Performance	16
Indebtedness	22
CAPEX	23
Free Cash Flow	24
Retirement Plan (Vivest)	25
Contingencies	27
Regulatory Matters	30
Subsequent Events	32
ESG Agenda	32
Capital Markets	34
Appendices	36

2

Results | 3Q21

3Q21 RESULTS

CONSOLIDATED FINANCIAL HIGHLIGHTS

	(R$ mil)			3Q21				3Q20				∆		9M21	9M20		∆
Gross operating revenue	649,413		536,256		21%		1,880,027	1,622,023	16%
	Net operating revenue			572,063			470,527			22%		1,654,111	1,416,599	17%
Gross operating result	822,094		157,560		-		1,195,752	596,241	101%
	Cost and expenses1			178,331			(337,023)			-		(423,806)	(776,374)	-45%
EBITDA	861,278		228,880		-		1,536,415	935,872	64%
	Adjusted EBITDA2			143,481			235,952			-39%		647,590	859,399	-25%
Adjusted EBITDA margin	25%		50%				-25 p.p.	39%	61%		-21 p.p.
	Net income			395,323			(58,525)			-		492,992	133,086	-
Net debt	1,577,687		1,099,463		43%		1,577,687	1,099,463	43%
	Net debt/EBITDA LTM			0.9x				0.8x				0.1x		0.9x	0.8x		0.1x
Net debt/ adjusted EBITDA¹		2.0x			1.0x			1.0x	2.0x	1.0x		1.0x
LTM

• Net revenue in 3Q21 rose 22% to BRL572 million, driven mainly by the growth in trading operations by CESP Comercializadora and by higher average sale prices.
• Adjusted EBITDA of BRL143 million in 3Q21, down 39% on the same period of 2020, explained mainly by water crisis impacts that adversely affected operating margins.
• Operating cash flow after debt service of BRL152 million in 3Q21, representing a cash conversion ratio3 of 106%.
• Reduction in total contingent liabilities before monetary and interest adjustments, of BRL1.5 billion compared to June 2021, excluding BRL336 million in probable contingencies, due to the settlement of lawsuits, revisions of estimates based on the evolution of lawsuits and favorable court decisions.
• Net income of BRL395 million in the quarter, mainly due to the positive impact from the GSF renegotiation.

1. Costs and expenses are positive in 3Q21 due to the reimbursement related to the GSF renegotiation of Paraibuna and Porto Primavera HPPs, totaling BRL782 million.
2. Adjusted EBITDA excludes allowance for litigation, write-off of judicial deposits and GSF renegotiation net of impairment
3. Cash conversion ratio = OCF after debt service / Adjusted EBITDA

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Results | 3Q21

MESSAGE FROM MANAGEMENT

Renewable energy is being more highly valued and figuring at the center of business decisions, which creates new challenges and opportunities. Around the world, the need is mounting for renewable clean energy that drives progress in various sectors of the economy and a more sustainable future. This promising path, from which there is no return, demands strategies and investments.

In this context of constant evolution, the announcement via a Material Fact that CESP had received from VTRM a proposal for a corporate reorganization aiming to create one of the leading publicly traded companies in Brazil's power industry is another important milestone for our transformation. This proposal will be analyzed, evaluated, negotiated by an independent committee already in place and submitted for approvals to shareholders as part of our governance process, in addition to the approvals by the necessary regulatory agencies.

Regarding the third quarter of this year, we observed a highly challenging hydrologic scenario in the country with the worst dry season (April to September) since 1931. Faced with this scenario, CESP anticipated and took advantage of windows of opportunity in the market to acquire all the energy required to ensure its energy balances of 2021 and 2022.

On the commercial front, CESP has been working to seize opportunities in future energy sales, mainly as from 2024. This quarter, we advanced in our go-to-market strategy, which aims to expand and diversify the client base to reduce costs and maximize results.

In the management of contingent liabilities, we remain focused on the resolution, through judgements and negotiations, of our legal suits' portfolio, seeking ways to continually mitigate risks. In June 2021, we launched a digital agreement platform, in partnership with Getúlio Vargas Foundation (FGV), to pursue agreements on the lawsuit filed by the potters of the city of Panorama against CESP and achieved total adherence of 25% of plaintiffs. We ended 3Q21 with total contingent liabilities of R$9.2 billion, which represents reductions of R$1.5 billion in total4 contingent liabilities and of R$336 million in probable contingent liabilities, which were achieved mainly through legal settlements, revisions of estimates and favorable court rulings.

Also, this quarter, Paraibuna and Porto Primavera HPPs accepted the terms of the GSF negotiation, resulting in a compensation recognition of BRL782 million this quarter and a concession extension of 15 months and 7 years, respectively. Another highlight was the approval of the Vivest's pension plan migration process by Previc. With this, CESP already intensified the communication about the subject and started the roadshow with the beneficiaries.

Adjusted EBITDA in the quarter came to BRL143 million, down BRL92 million from the prior-year period, which is basically explained by the water crisis, increasing the energy

4 After monetary adjustment.

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Results | 3Q21

purchase need, mainly due to the worsening in GSF in the period and the increase of energy prices in the market.

CESP reaffirms that it continues to work diligently and transparently in the management of its business with the aim of finding the best way to meet the demands of the market, which is in constant transformation. We are ready to meet the challenges of the energy transition in the market, while paving a path to growth with a diversified portfolio and innovative solutions in energy trading.

We are proud of the path that we are traveling at this moment and take this opportunity to thank everyone who has accompanied us on this journey and supported our constant progress with the creation of new opportunities to create value.

MARIO BERTONCINI	MARCELO DE JESUS
Chief Executive and Investor
Chief Financial Officer
Relations Officer

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Results | 3Q21