Engie Brasil Energia S A : Earnings Release - 2Q22

EARNINGS RELEASE 2Q22

For Immediate Release

Additional information:

Eduardo Sattamini

Chief Executive and Investor Relations Officer

Marcelo Malta

Chief Financial Officer

Rafael Bósio

IR Manager

[e-mail]

Tel.: [phone]

[e-mail]

Video Conference

On 08/03/2022 at 11:00 a.m. (EDT) in Portuguese (simultaneous translation into English)

Further details on Upcoming Events section, available on page 34.

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Florianópolis, Brazil, August 2, 2022. ENGIE Brasil Energia S.A. ("ENGIE" or "Company") - B3: EGIE3, ADR: EGIEY

• announces earnings for the Second Quarter and six months period ending on June 30, 2022 (2Q22, 6M22/1H22). The information in this release is shown on a consolidated basis and in accordance with Brazilian accounting principles and practices. The values are expressed in Brazilian Reais (R$), except where otherwise indicated. Rounding effects may cause differences in percentage changes, when comparing the comments on Economic- Financial Performance, presented in R$ million, with the Income Statement (Appendix III), presented in R$ thousand.

ENGIE Brasil Energia announces increases of 23.8% and 20.4% in adjusted Ebitda and Net Income, respectively, as a result of the Company's continuous growth strategy.

Board of Directors approved the distribution of R$ 578 million as intermediate dividends.

Company bid successfully for Block 7 in the 01/22 Aneel Transmission auction, leveraging existing synergies with the Novo Estado Transmission System.

HIGHLIGHTS

Adjusted net income was R$ 514 million in the 2Q22, 20.4% (R$ 87 million) higher than posted in the 2Q21.

The Company posted adjusted Ebitda1 of R$ 1,897 million in the 2Q22, an increase of 23.8% (R$ 365 million) compared to the 2Q21. The adjusted Ebitda margin was 63.3% in the 2Q22, a growth of 14.4 p.p. compared with the 2Q21.

Net operating revenue reached R$ 2,996 million in 2Q22, 4.4% (R$ 137 million) lower than recorded in the 2Q21.

In 2Q22, the Company booked an impairment in the amount of R$ 180 million, (non-recurring) as a result of advances in the negotiations for the sale of the Pampa Sul Thermoelectric Power Plant.

The average price of the energy sales agreements, net of taxes on revenues and trading operations, was R$ 219.52/MWh in the 2Q22, 6.9% higher than registered in the 2Q21.

Excluding trading operations, the energy sales volume in the 2Q22 was 9,556 GWh (4,376 average MW), 7.9% higher than sold in the 2Q21.

Umburanas Wind Complex

The largest hydroelectric plant operated by ENGIE, Itá Hydropower Plant, began remote operations out of the Generation Operations Center (COG), situated at the Company's head office in the city of Florianópolis. Plants operated remotely now total 60, representing 71.6% of ENGIE's total generator complex.

At an estimated investment of R$ 300 million, an

agreement was signed for building a gas pipeline of

approximately 25 km linking the Centrais Elétricas de Sergipe (Celse) liquified natural gas terminal (LNG) to TAG's gas transportation network.

Concluded the acquisition of the development rights of

the Serra do Assuruá Project, with installed capacity of approximately 880 MW, located in the state of Bahia, for up to a price ceiling of R$ 265 million (value as of May/2022). The issue of the access opinion, the signature of the grid connection contract and the obtaining of part of the land use agreements will all be instrumental in allowing the installation of the asset to proceed at an investment estimated at about R$ 6 billion.

ENGIE Brasil Energia was one of the highlights of the electricity sector in the Best of ESG 2022 awards sponsored by Exame magazine in partnership with the Ibmec business school.

The Company made a successful bid in the Aneel Transmission Auction 01/2022 for block 7 covering the installation of one kilometer of transmission line and a substation complementary to the Novo Estado Project in the state of Pará.

ENGIE Brasil Energia - Earnings Release 2Q22	2

SUMARY OF FINANCIAL

AND OPERATIONAL INDICATORS

Consolidated (In millions of R$)			2Q22	2Q21	Chg.	6M22	6M21	Chg.
Net Operating Revenue (NOR)					2,996	3,133	-4.4%	6,059	6,383	-5.1%
Results from Operations (EBIT)					1,456	1,132	28.6%	3,098	2,639	17.4%
Ebitda	1										1,717	1,369	25.4%	3,607	3,108	16.1%
Adjusted Ebitda	2								1,897	1,532	23.8%	3,774	3,271	15.4%
Non-recurrent effects adjusted Ebitda	3		1,720	1,373	25.3%	3,380	2,956	14.3%
Ebitda / NOR - (%)	1							57.3	43.7	13.6 p.p.	59.5	48.7	10.8 p.p.
Adjusted Ebitda / NOR - (%)	2					63.3	48.9	14.4 p.p.	62.3	51.2	11.1 p.p.
Net Income									395	319	23.8%	1,040	848	22.6%
Adjusted Net Income							514	427	20.4%	1,150	956	20.3%
Adjusted Return on Equity (ROE)	4				32.3	31.1	1.3 p.p.	32.3	31.1	1.3 p.p.
Adjusted Return on Invested Capital (ROIC)	5	22.7	23.9	-1.2 p.p.	22.7	23.9	-1.2 p.p.
Net Debt	6									16,342	13,078	25.0%	16,342	13,078	25.0%
Gross Power Production (avg MW)	7			4,718	3,316	42.3%	4,009	3,955	1.4%
Energy Sold (avg MW)	8						4,376	4,055	7.9%	4,263	4,130	3.2%
Average Net Sales Price (R$/MWh)	9			219.52	205.35	6.9%	224.84	205.24	9.5%
Number of Employees - Total					1,218	1,598	-23.8%	1,218	1,598	-23.8%
EBE Employees								1,148	1,473	-22.1%	1,148	1,473	-22.1%
Employees on Under Construction Plants		70	125	-44.0%	70	125	-44.0%

1 Ebitda: net income + income tax and social contribution + financial result + depreciation and amortization.

2 Adjusted Ebitda: net income + income tax and social contribution + financial result + depreciation and amortization + impairment + non-recurrent.

3 Adjusted EBITDA, less the effects of IFRS in the transmission segment.

4 ROE: adjusted net equity for the past 4 quarters /shareholders' equity.

5 ROIC: effective tax rate x adjusted EBIT / invested capital (invested capital: debt - cash and cash equivalents - deposits earmarked for debt servicing + SE).

6 Adjusted amount, net of gains from hedge operations.

7 Total gross electricity output from the plants operated by ENGIE Brasil Energia.

8 Disregarding sales for quota regime (Jaguara and Miranda HPPs).

9 Net of taxes and trading operations.

SUBSEQUENT EVENT

The Board of Directors approved the distribution of R$ 578 million as

intermediate dividends (R$ 0.7082542240/share) representing 55% of

the distributable net income reported in the first half of 2022. Shares will become ex-dividend as from August 17, 2022 and will be paid on a date to be determined later by the Management Board .

Umburanas Wind Complex

ENGIE Brasil Energia - Release de Resultados 1T22

3

MESSAGE FROM

THE MANAGEMENT

Committed to the sustainability of our business and the energy transition, we continue strengthening our presence in the transmission segment, capturing synergies and expanding the resilience of our portfolio. Consequently, on June 30, based on responsible operational guidelines in accordance with our financial discipline, we took part in an Aneel auction, bidding successfully for Block 7. This covers the installation of one km of transmission line in the state of Pará and a substation complementary to the Novo Estado Project, currently under construction by the Company with work already 93% complete and generating 49% of Annual Allowed Revenue (RAP). The compatibility between the two projects offers the potential for reducing investment and anticipating commercial operations by at least 24 months in relation to the terms envisaged by Aneel.

The Company also demonstrate its capacity of execution and delivery with a high degree of excellence both in terms of the projects being implemented as well as the management of the portfolio already in operation. In the second quarter, the Gralha Azul Transmission System was formally transferred to the operational phase with the energization of the Castro Substation and already generating the equivalent of 94% of the project's RAP. The work is fully completed, leaving only the connection of the Irati - Ponta Grossa Substation and its associated lines, which are under the responsibility of other developers and will be completed by March 2023.

The highlight in the generation segment was the start of remote operations at the Itá Hydropower Plant on May 30 conducted out of ENGIE Brasil Energia's Generation Operations Center (COG) in Florianópolis. With 1,450 MW of installed capacity, the Itá HPP joins 59 other plants already operating remotely out of the COG.

In this second quarter also, it was with satisfaction at the outset of the dry season that we were able to record high water levels in the reservoirs of the hydropower plants - critical to the stability of the

National Electricity System. The uptime index of the plants operated by the Company was as high as 89%, with an production of 3,982 average MW for the hydroelectric plants, while the plants fired from complementary sources recorded an output of 736 average MW.

In 2Q22, ENGIE Brasil Energia recorded net operating revenue of R$ 3.0 billion, (-4.4% vs 22Q1), a decrease due to the reduction in the rate of implementation of the transmission systems and lower volume of trading operations. The Company recognized an impairment of R$ 180 million, on the back of progress made in the process for disposing Pampa Sul TPP, while adjusted Ebitda (which ignores the mentioned impairment effect) increased by 23.8% in relation to 2Q21, reaching R$ 1.9 billion in 2Q22, equivalent to an adjusted Ebitda Margin of 63.3% (+ 14.4 p.p.). Equally, adjusted net profit increased 20.4% year-on-year reaching R$ 514 million in 2Q22. These indicators were positively impacted by an increase in the net average energy selling price and energy sales volume, by the increase in the contribution of the energy transmission segment, the improved result for transactions conducted in the short-term market, the higher remuneration from the financial concession assets, among other factors.

Our forecasted investment in 2022 is R$ 3.9 billion, R$ 1.5 billion being injected into the Company's business in the first half of the year. Our cash position was of the order of R$ 4.3 billion and the net debt/Ebitda ratio was 2.1x, representing a comfortable financial condition and in line the financial discipline required to achieve forecasted growth.

Estreito Hydro Power Plant

ENGIE Brasil Energia - Earnings Release 2Q22	4

The future is prosperous. In addition to the installation of the Santo Agostinho Wind Complex in the state of Rio Grande do Norte - this with an installed capacity of 434 MW and already with 20% of the work complete - we also expanded our portfolio of projects with the inclusion of the Santo Agostinho Photovoltaic Complex (509 MW) to be built in the same region. In addition, on June 21 we also finalized the acquisition of the Serra do Assuruá wind project in the state of Bahia with an installed capacity up to 880 MW. Thus, our portfolio of projects at an advanced stage of development has surpassed the mark of 3.5 GW in capacity to be installed.

Since the month of May, we have also been involved in the development of green hydrogen projects with the twin aims of ensuring the viability of the energy transition and supporting the decarbonization process for the more complex and carbon intense sectors. In view of this, we are seeking partnerships with different industrial segments in an effort to evaluate opportunities taking into account the risk-return balance in the economic, social and environmental contexts.

Working with transparency, financial discipline and operational efficiency and with our license for long-term operations and growth based on respect for people and the planet, we held our Annual Sustainable Management Meeting with the participation of 452 employees. In all, there were 20 hours of training via talks and panels focused on priority themes for the Company. These included the path to be followed for reaching carbon neutrality and the quality of the interactive relationship with employees, clients, investors, organizations and communities.

We have also evolved in our safety culture, based on the principle that no life can be at risk while we generate and transmit the energy necessary for our country to develop. In July, led by the consultancy Dupont - a world reference for safety training - we gathered 38 Safety professionals from ENGIE Brasil Energia for intensive training in accident analysis and prevention tools.

Our Company remains proactively ambitious and in the vanguard of sustainable development. We are conscious that the reliability in the way we execute the businesses is what permits us to continue growing and generating value for society and in this context, our realizations are focused on the construction of a more balanced and just world for current and future generations.

Good reading!

Eduardo	Marcelo
Antonio Gori Sattamini	Cardoso Malta
Chief Executive and	Chief Financial
Investor Relations Officer	Officer
ENGIE Brasil Energia - Earnings Release 2Q22	5