Engie Brasil Energia S A : Earnings Release - 4Q22

EARNINGS

RELEASE 4Q22 and 2022

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 2/17/2023 at 11:00 a.m. (BRT), 9:00 a.m. (EST) in Portuguese (with simultaneous translation into English)

Click hereto access the transmission.

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Florianópolis, Brazil, February 16, 2023. ENGIE Brasil Energia S.A. ("ENGIE" or "Company") - B3: EGIE3, ADR: EGIEY - announces earnings for the Fourth Quarter and twelve months period ending on December 31, 2022 (4Q22, 12M22). 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.

In 2022, ENGIE Brasil Energia began the implementation of 1.6 GW of installed capacity from renewable sources, expanded activities in the transmission segment and consolidated the decarbonization strategy with the signature of the agreement to sell Pampa Sul TPP.

Assú V Photovoltaic Complex

Board of Directors approved proposal for distribution of R$ 2.7 billion in total earnings - payout reached 100% in 2022.

HIGHLIGHTS

In 2021, the Company booked R$ 1,591 million following the renegotiation of hydrological risk (laws 14.182/2021 and 14.052/2020), and R$ 1,076 million of impairment for the Jorge Lacerda and Pampa Sul thermoelectric plants as well as ENGIE Geração Solar Distribuída.

Adjusted net income was R$ 2,764 million in 2022, 16.7% (R$ 395 million) higher than posted in the 2021. Excluding the effect of the hydrological risk renegotiation occurred in 2021, the increase was 109.6%.

The Company posted adjusted Ebitda1 of R$ 6,941 million in 2022, a decrease of 3.8% (R$ 276 million) compared to 2021. The adjusted Ebitda margin was 58.3% in 2022, a growth of 0.8 p.p. compared with 2021. Adjusted Ebitda growth, net of the effects of the hydrological risk renegotiation, occurred in 2021,

increased by 23.4%.

Net operating revenue reached R$ 11,907 million in 2022, 5.1% (R$ 634 million) lower than recorded in 2021.

The average price of the energy sales agreements, net of taxes on revenues and trading operations, was R$ 222.85/MWh in 2022, 11.5% higher than registered in 2021.

Excluding trading operations, the energy sales volume in 2022 was 37,932 GWh (4,330 average MW), 4.3% higher than sold in 2021.

The distribution of Interest on Shareholders' Equity was

approved by the Board of Directors (BD) in the amount

of R$ 200 million (R$ 0.2451/share).

Investment of around R$ 3.3 billion was approved by

the BD for implementing the Assú Sol Photovoltaic Complex, with an installed capacity of approximately 750 MW, to be implemented in the muncipality of Assú (RN).

Signature of a financing agreement with Banco Nacional de Desenvolvimento Econômico e Social (BNDES) for

the implementation of the Serra do Assuruá Wind

Complex, located in Gentio do Ouro (BA) with an installed capacity of about 846 MW.

The Energy Place platform completed two years of operations in November, preparing the way for market liberalization. By the end of 2022, it had transacted 320 operations - equivalent to the negotiation of 90 GWh.

The Company continues a component of the Corporate Sustainability Index (ISE) - of which it has been a part since inception - and the Carbon Efficient Index (ICO2), both B3 stock indices.

In December, the result of the first direct report to the

CDP (formerly the Carbon Disclosure Project) was published on the ENGIE Brasil Energia's carbon management, the report being awarded a "B" classification - the third best score.

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SUMARY OF FINANCIAL

AND OPERATIONAL INDICATORS

Consolidated (In millions of R$)			4Q22	4Q21	Chg.	12M22	12M21	Chg.
Net Operating Revenue (NOR)					3,102	2,769	12.0%	11,907	12,541	-5.1%
Results from Operations (EBIT)					1,487	750	98.3%	5,801	4,898	18.4%
Ebitda	1										1,714	1,084	58.1%	6,790	5,941	14.3%
Adjusted Ebitda	2								1,735	2,248	-22.8%	6,941	7,217	-3.8%
Non-recurrent effects adjusted Ebitda	3		1,674	2,447	-31.6%	6,713	6,949	-3.4%
Ebitda / NOR - (%)	1							55.3	39.1	16.2 p.p.	57.0	47.4	9.6 p.p.
Adjusted Ebitda / NOR - (%)	2					55.9	81.2	-25.3 p.p.	58.3	57.5	0.8 p.p.
Net Income									891	78	1042.3%	2,665	1,565	70.3%
Adjusted Net Income							904	815	10.9%	2,764	2,369	16.7%
Adjusted Return on Equity (ROE)	4				32.8	29.9	2.9 p.p.	32.8	29.9	2.9 p.p.
Adjusted Return on Invested Capital (ROIC)	5	20.7	22.4	-1.8 p.p.	20.8	20.2	0.6 p.p.
Net Debt	6									15,685	14,612	7.3%	15,685	14,612	7.3%
Gross Power Production (avg MW)	7			5,750	3,789	51.7%	5,013	3,906	28.3%
Energy Sold (avg MW)	8						4,398	4,234	3.9%	4,330	4,151	4.3%
Average Net Sales Price (R$/MWh)	9			223.05	190.84	16.9%	222.85	199.79	11.5%
Number of Employees - Total					1,253	1,237	1.3%	1,253	1,237	1.3%
EBE Employees								1,191	1,135	4.9%	1,191	1,135	4.9%
Employees on Under Construction Plants		62	102	-39.2%	62	102	-39.2%

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 EVENTS

The Board of Directors approved the proposal for the distribution of complementary dividends of R$ 1,455.2 million (R$ 1.7834/share), to be ratified by the Annual General Meeting (AGM), on which it is incumbent to a establish payout conditions. Total earnings for fiscal year 2022 will reach R$ 2,705.9 million (3.3163/share), equivalent to 100% of the adjusted

net income for 2022.

The National Electric Energy Agency (Aneel) granted the request for liability waiver made by the Estreito Energia Consortium, extending the concession period for the Estreito Hydroelectric Power Plant by 852 days.

Umburanas Wind Complex

Important

This release contains information and opinions on future events subject to risks and uncertainties, which are based on current forecasts, projections and tendencies in relation to the Company´s businesses. Innumerous factors can affect the estimates and assumptions on which these opinions are based. For this reason, the estimates and forward looking statements in this release may not become a reality. In the light of these restrictions, shareholders and investors should not adopt any decisions based on estimates, projections and forward looking statements contained in this release.

ENGIE Brasil Energia - Earnings Release 4Q22 and 2022	3

MESSAGE FROM

THE MANAGEMENT

To act in order to accelerate. It is on the basis of these two verbs that ENGIE Brasil Energia's purpose drives our work every day. And while the focus of this purpose is the energy transition - ever more necessary to confront the challenges of climate change - our commitment is to ensure that this movement also contributes to the quality of lives of people in a just and truly sustainable society.

In 2022, we acted, accelerated and advanced, reaping the rewards that reflect the consistency of the strategy, resilience of the business model, efficacy in the management of the Company's risks and solid structure of governance, with roles and responsibilities defined and processes evaluated and audited annually through both internal and independent structures. For the year 2022 as a whole, net operating revenue exceeded R$ 11.9 billion, 5.1% down against the same item reported for 2021. This reflected the reduction in construction revenue from the transmission systems due to the stage reached of work in progress, and lower revenue from trading operations. These effects were attenuated by the increase in energy sales and higher average selling price. Adjusted Ebitda fell 3.8% to reach R$ 6.9 billion in 2022, reflecting the effects already mentioned, in addition to the booking in 2021 of recovery of past costs in the amount of R$ 1.6 billion relating to the renegotiation of hydrological risks. Excluding this effect, Ebitda would have risen by 23.4%. Finally, ENGIE Brasil Energia posted an increase of R$ 1.1 billion (70.3%) in net income compared to 2021, totaling R$ 2,7 billion for the calendar year of 2022.

The favorable hydrological scenario in 2022, different from that reported over the last few years, was very positive for the electric energy sector, allowing hydroelectric generation to continue supporting the growth of wind and solar, as the basis of the National Electric Grid. In parallel, the more favorable energy scenario led to a fall the energy settlement prices in short-term, little affecting the Company's revenues in the light of the high level of contracting of our diversified portfolio in short and medium terms, the larger part of which in the regulated contracting environment and lending stability to the

results.

Such condition has permitted the Company to remunerate investors and continue growing in a responsible, disciplined, and competitive manner. As part of this trajectory, the implementation of the Santo Agostinho Wind Complex in Rio Grande do Norte reached an advanced stage of implementation by the end of 2022. Despite the challenges posed by problems in the global supply chain - caused by imbalances resulted from the pandemic crisis and the conflict in Ukraine

-,we acted to minimize the effects on the schedule of work and ensure gradual entry into operation as from 1Q23. Once fully operational, this asset will add 434 MW to our installed capacity.

Still in the generation segment, growth in renewables was ramped up with the approval of two heavy duty projects in the Northeast of Brazil and expected to be implementated in 2023 and 2024, accelerating our growth in renewable generation. One of them is the Serra do Assuruá Wind Complex in Gentio do Ouro (BA) with 846 MW of installed capacity and an investment of the order of R$ 6 billion. The other is the Assú Sol Photovoltaic Complex in Assú (RN) with a 752 MW capacity and located adjacent to the photovoltaic plants which the Company is already operating in the same municipality.

These two new projects represent the largest wind and photovoltaic projects, respectively, ever to be implemented by the ENGIE Group in Brazil. The dimensions reflect the evolution of our skills and absolute confidence in the capacity of our teams to execute such projects with excellence, combining technical qualification with good socio-environmental practices.

This is the way we conduct the entire Company's operations including our first transmission assets. Operational for about a year now, the Gralha Azul Transmission System has recorded elevated levels of efficiency, reiterating our contribution to the social-economic development of the state of Paraná. In the North, Novo Estado Transmission System has advanced to the final phase of construction and perspective to reach fully operational in the 1Q23, with the complete energization of 1.8 thousand kilometers of power lines and the operation of substations in the states of Tocantins and Pará.

Expansion also reflects our commitment to the decarbonization of the generator complex, which had as its recent development the signature in September of 2022 of the agreement for the sale of the Pampa Sul Thermoelectric Power Plant, the only remaining coal-fired operation in our Brazilian power complex. On the conclusion of the transaction in 2023, this movement will elevate ENGIE Brasil Energia to the position of the largest renewable electric energy generator in the country.

Rigorously planned since 2015, our decarbonization journey provides for strategic actions for compensating the loss of fossil sourced capacity. Hence, between 2016 and 2022, more than R$ 20 billion was allocated to the transition - which has translated into an increase of annual investment in this period by a multiple of four compared with previous periods.

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An undeniable acceleration has been made possible thanks to the unconditional support of our Controlling Company, as well as by the solid financial and operational condition the Company throughout its trajectory.

We have maintained ENGIE Brasil Energia's outstanding position in generation as well as strengthening our footprint in the segments of transmission and gas transportation in the way we always operate: with total respect for the environment and people both in and outside the Company. We acted intensely in 2022 to strengthen our occupational safety culture among our own employees and also those of our service providers at our installations, recording a year without serious or fatal accidents as well as a significant reduction (-52.5%) in workplace accidents requiring time off work.

To ensure an increasingly safe, attractive and prosperous workplace environment, we have also taken initiatives for promoting diversity, equitability and inclusion. Continuing the plan of expanding the presence of women in positions of leadership and operating functions, we advanced in actions such as measures for filling affirmative vacancies for women engineers and through training programs for women in operations and maintenance. For the creation of opportunities accessible to other under-represented groups, in 2022, we launched the Diversity and Inclusion Policy, the Practical LGBTQ+ Guide and the Diversity and Inclusion Program directed towards people with special needs.

The scale of relevance and urgency of our social actions is based on dialog with local stakeholders. In 2022, we resumed the process of actively listening to the communities, promoting sustainability panels in municipalities which headquarter plants operated by ENGIE Brasil Energia. Among the themes brought out by the dialog is the major concern of the communities with the environment, a concern shared by the Company. In addition to ensuring compliance of all our activities with the environmental legislation, we are developing various voluntary initiatives for conservation, with a focus on biodiversity, water, waste, and climate.

The movement for both a better present and future for people and the planet has won over important allies: our clients. Through the Goodwill Partnerships Program, we propose joint investments and social responsibility initiatives on the part of different organizations, bringing together companies of different sizes and from various sectors and regions of Brazil, which share the desire to expand the positive impact of their businesses. At the end of 2022, more than 20 organizations were active in the Program, comprising a transforming network, intent on leaving a significant legacy to the communities.

In readiness for the opportunities expected to arise in a scenario which involves the expansion of the Free Contracting Environment (ACL) - following publication of Ordinance 50/2022 by the Ministry of Mines and Energy (MME) in September

• the Company has intensified digitalization initiatives in client service, notably through the Energy Place, an innovative energy acquisition and management platform. In parallel, we have restructured our commercial teams, formatting a series of solutions for serving with agility and reliability the different profiles of clients qualifying for the Free Energy Market.

We are in no doubt that in addition to this, other regulatory changes anticipated for the modernization of the Brazilian electric energy sector will bring benefits to the economy and society. To cooperate in these advances, ENGIE Brasil Energia maintains dialog and cooperation with agents both from the public and private sectors for the strategic guidance of the market, debating themes such as the end to subsidies which prejudice the competitivity of the sector and recognition the essential role of hydropower plants play in the insertion of intermittent energy in the National Interconnected System (SIN) - currently, without the attributes of this energy source being adequately rewarded. In this context, we are optimistic as to the outcome of discussions set to occupy space in the regulatory environment of the Brazilian Electric Energy Sector in 2023.

Confident in the capacity of the country to grow, the Company continues attentive to the opportunities for contributing so that the full potential of Brazil can be realized, generating economic development, environmental conservation and social justice. Our thanks go to those that share this optimism, believe in our commitments, and support our achievements. Together, we act and accelerate the transition that will lead us to the desired future.

Good reading!

Eduardo	Marcelo
Antonio Gori Sattamini	Cardoso Malta
Chief Executive and	Chief Financial Officer
Investor Relations Officer
ENGIE Brasil Energia - Earnings Release 4Q22 and 2022	5