Equatorial Energia S A : Dados Econômico-Financeiros

Equatorial

Energia S.A.

Quarterly Financial Information

June 30, 2021

(A free translation of the original report in Portuguese, prepared in accordance with the accounting practices adopted in Brazil)

Independent auditor's review report on the individual and consolidated quarterly
information	1
Statements of financial position	3
Statement of profit and loss	4
Statements of comprehensive income	5
Statements of changes in equity	6
Statements of cash flows - Indirect method	7
Statements of value added	8
Notes to the individual and consolidated interim financial information	9

Centro Empresarial Iguatemi

Av. Washington Soares, 55

5º andar - sala 508 - Bairro Cocó 60811-341 - Fortaleza - CE - Brasil

Tel: [phone]

Fax: [phone] ey.com.br

Independent auditor's review report on the individual and consolidated quarterly information

To the shareholders of

Equatorial Energia S.A.

São Luis - MA

Introduction

We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of Equatorial Energia S.A. ("Company"), for the quarter ended June 30, 2021, comprising the statement of financial position as of June 30, 2021 and the related statements of profit or loss and of comprehensive income for the three and six month period then ended, and of changes in equity and of cash flows for the six month period then ended, including the explanatory notes.

Management is responsible for preparation of the individual and consolidated interim financial information in accordance with Accounting Pronouncement NBC TG 21 - Interim Financial Reporting, and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above are not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of Quarterly Information Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

1

Uma empresa-membro da Ernst & Young Global Limited

Other matters

Statements of value added

The abovementioned quarterly information include the individual and consolidated statement of value added (SVA) for the six month periods ended June 30, 2021, prepared under Company's Management responsibility and presented as supplementary information by IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and the accounting records, as applicable, and if its format and content are in accordance with the criteria set forth by NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, consistently with the overall individual and consolidated interim financial information.

Fortaleza, August 10, 2021.

ERNST & YOUNG

Auditores Independentes S.S.

CRC 2SP015199/O-6

Carlos Santos Mota Filho

Accountant CRC PE020728/O-7-T-CE

2

Equatorial Energia S.A. and Consolidated

Statement of financial position as of June 30, 2021 and December 31, 2020 (In thousands of Reais)

		Parent company	Consolidated			Parent company	Consolidated
	Note	06/30/2021	12/31/2020	06/30/2021	12/31/2020		Note	06/30/2021	12/31/2020	06/30/2021	12/31/2020
Asset						Liabilities
Current						Current
Cash and cash equivalents	4	936.058	165.569	4.205.024	2.219.546	Trade payables	14	1.297	33.007	1.723.360	2.263.294
Market securities	5	289.687	642.999	3.916.445	5.397.283	Payroll charges and obligations		453	304	65.581	63.962
Trade accounts receivable	6	-	-	3.542.658	3.589.317	Loans and borrowings	15	-	-	2.171.746	2.229.290
Fuel purchased - CCC account		-	-	41.873	29.855	Debentures	16	7.993	3.161	1.254.429	883.076
Services in progress		-	-	536.245	518.041	A "Component" revenue returnable and other financial items	7	-	-	213.555	753.702
A "Component" revenue returnable and other financial items	7	-	-	56.862	-	Taxes and contributions payable	17	2.663	2.763	431.088	596.074
Judicial deposits	21	148	56	4.105	3.567	Income taxes and social contribution payable		16	61	215.516	169.208
Derivative financial instruments	30.4	-	-	226.157	100.600	Dividends		707.099	547.597	720.269	601.510
Inventories		-	-	95.942	47.264	Public lighting fee		-	-	88.213	83.867
Dividends receivable	9	298.116	175.277	-	7.463	Sector charges	20	-	-	338.382	286.397
Recoverable taxes and contributions	8	34	34	1.066.839	1.240.973	Profit sharing		16.156	18.848	96.815	127.076
Recoverable income tax and social contribution		11.680	6.264	238.658	195.413	Derivative financial instruments	30.4	94.528	-	94.742	-
Other receivables		6.677	6.071	617.999	587.078	Payable under the judicial reorganization plan - Equatorial Pará	19	-	-	45.250	30.274
Contractual assets	13	-	-	1.196.400	708.900	Lease liability		132	138	8.485	11.137
						Provision for civil, tax, labor and regulatory claims	21	-	-	120.662	215.811
Total current assets		1.542.400	996.270	15.745.207	14.645.300	Other accounts payable		3	1	389.360	395.260
						Total current liabilities		830.340	605.880	7.977.453	8.709.938
Noncurrent
Market securities	5	-	-	113.530	119.576	Noncurrent
Trade accounts receivable	6	-	-	998.406	967.527	Trade payables	14	-	-	19.280	6.695
A "Component" revenue returnable and other financial items	7	-	-	21.636	1.185.784	Loans and borrowings	15	-	-	9.698.825	10.558.285
Judicial deposits	21	172	172	262.341	250.284	Debentures	16	568.539	562.926	4.645.098	4.117.327
Services in progress		-	-	25.686	32.774	Retirement and pension plan		-	-	162.396	150.598
Derivative financial instruments	30.4	-	-	100.872	295.161	Taxes and contributions payable	17	-	-	213.804	234.365
Recoverable taxes and contributions	8	-	-	573.547	984.483	Deferred income and social contribution taxes	18	50	50	1.984.664	1.915.750
Recoverable income tax and social contribution		26.747	32.512	83.247	89.012	Deferred PIS and COFINS	18.4	-	-	1.032.731	984.845
CCC subrogation - amounts allocated		-	-	91.688	85.120	Provision for civil, tax, labor and regulatory claims	21	-	-	993.808	991.184
Retirement and pension plan		-	-	23.206	23.206	A "Component" revenue returnable and other financial items	7	-	-	277.532	170.307
Other receivables		9.348	9.673	285.625	328.019	Payable under the judicial reorganization plan - Equatorial Pará	19	-	-	976.355	930.606
Concession's	11	-	-	6.139.258	5.665.922	Sector charges	20	-	-	439.053	486.703
Investment	10	10.420.567	10.623.050	169.108	130.024	Derivative financial instruments	30.4	-	-	108.652	-
Property, plant and equipment		3.027	2.782	23.476	19.258	PIS/COFINS to be reimbursed to consumers	22	-	-	2.187.405	2.321.392
Intangible assets	12	2.638	1.437	8.804.685	8.908.853	Lease liability		590	655	16.147	17.716
Right-of-use		815	874	22.813	29.404	Other accounts payable		36.675	34.869	247.006	249.822
Contractual assets	13	-	-	10.016.945	10.364.313	Total non-current liabilities		605.854	598.500	23.002.756	23.135.595
Total noncurrent assets		10.463.314	10.670.500	27.756.069	29.478.720	Equity
						Share capital	23.1	4.655.287	3.489.736	4.655.287	3.489.736
						Treasury shares	23.5	(632.005)	(31.734)	(632.005)	(31.734)
						Capital reserves	23.2	132.913	118.307	132.913	118.307
						Revenue reserves	23.3	5.814.392	7.138.924	5.814.392	7.138.924
						Asset and liability valuation adjustments	23.4	(264.023)	(252.843)	(264.023)	(252.843)
						Profit for the period		862.956	-	862.956	-
						Shareholders' equity attributable to Company shareholders		10.569.520	10.462.390	10.569.520	10.462.390
						Non-Controlling Interest (NCI)		-	-	1.951.547	1.816.097
						Total equity		10.569.520	10.462.390	12.521.067	12.278.487
Total assets		12.005.714	11.666.770	43.501.276	44.124.020	Total liabilities and equity		12.005.714	11.666.770	43.501.276	44.124.020

See accompanying notes.

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