Engie Brasil Energia S A : Earnings Release - 1Q23

Additional information:

Eduardo Sattamini

Chief Executive and Investor Relations Officer

Marcelo Malta

Chief Financial Officer

Rafael Bósio

IR Manager [e-mail].: [phone]

[e-mail]

On May 5, 2023 at 11:00 a.m. (BRT), 10:00 a.m. (EDT) in Portuguese with simultaneous translation into English)

to access the transmission.

Visit our Website

www.engie.com.br/investidores

Florianópolis, Brazil, May 4, 2023. ENGIE Brasil Energia S.A. ("ENGIE" or "Company") - B3: EGIE3, ADR: EGIEY - announces earnings for the First Quarter ending on March 31, 2023 (1Q23, 3M23). 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.

Gralha Azul Transmission System

ENGIE Brasil Energia

projects with the conclusion of the transmission systems, in addition

to the of commercial operations of

the .

Ebitda and net income grow 9.1% and 36,7% in 1Q23, respectively, compared with 1Q22.

Highlights

Net income was R$ 882 million in the 1Q23, 36.7% (R$ 237 million) higher than posted in the 1Q22.

The Company posted Ebitda1 of R$ 2,064 million in the 1Q23, an increase of 9.1% (R$ 173 million) compared to the 1Q22. The Ebitda margin was 70.9% in the 1Q23, a growth of 9.1 p.p. compared with the 1Q22.

Net operating revenue reached R$ 2,913 million in the 1Q23, 4.9% (R$ 149 million) lower than recorded in the 1Q22.

The average price of the energy sales agreements, net of taxes on revenues and trading operations, was R$ 229.4/MWh in the 1Q23, 3.1% higher than registered in the 1Q22.

Excluding trading operations, the energy sales volume in the 1Q23 was 9,380 GWh (4,343 average MW), 1.0% higher than sold in the 1Q22.

In February, the Company energized the final section of the Gralha Azul Transmission System and concluded the implementation and energization of the Novo Estado Transmission System, both now fully operational.

Fitch Ratings reaffirmed the Company's Long- Term National Scale Rating and that assigned to the sixth, seventh, nineth and tenth debenture issues at "AAA (bra)" and on a global scale the Long-TermIssuer Default Ratings-IDRsin foreign currency at 'BB" and local currency at 'BBB'. All ratings were reaffirmed with a stable outlook.

On March 23, the first generator unit of the Santo Agostinho Wind Complex in the state of Rio Grande do Norte began commercial operations.

ENGIE Brasil Energia

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Earnings Release 1Q23

Summary of Financial

and Operational Indicators

Consolidated (In millions of R$)				1Q23	1Q22	Chg.
Net Operating Revenue (NOR)					2,913	3,062	-4.9%
Results from Operations (EBIT)					1,837	1,641	11.9%
Ebitda	1								2,064	1,891	9.1%
Non-recurrent effects adjusted Ebitda	2		1,894	1,674	13.1%
Ebitda / NOR - (%)	1						70.9	61.8	9.1 p.p.
Net Income							882	645	36.7%
Adjusted Return on Equity (ROE)	3				32.5	29.6	2.9 p.p.
Adjusted Return on Invested Capital (ROIC)	4	20.7	21.2	-0.5 p.p.
Net Debt	5							15,216	16,045	-5.2%
Gross Power Production (avg MW)	6			4,312	3,293	31.0%
Energy Sold (avg MW)	7					4,343	4,300	1.0%
Average Net Sales Price (R$/MWh)	8			229.42	222.43	3.1%
Number of Employees - Total					1,261	1,216	3.7%
EBE Employees							1,221	1,129	8.1%
Employees on Under Construction Plants		40	87	-54.0%

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

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

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

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

5 Adjusted amount, net of gains from hedge operations.

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

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

8 Net of taxes and trading operations.

Subsequent Events

The Company signed a Memorandum of Understanding with Invest Paraná for

developing large scale green hydrogen projects.

On April 17, the Portuguese version of the 2022 edition of ENGIE Brasil

Energia's Sustainability Report was released. To access the contentclick here.

The English version will be available soon.

On April 19 and 21, the second and third wind turbines at the Santo Agostinho

Wind Complex went into commercial operations, respectively.

The General Shareholders' Meeting of April 26 approved the distribution of complementary dividends for the fiscal year ending December 31, 2022 in the amount of R$ 1,455.2 million (R$ 1.7834/share), equivalent to 100% of the adjusted net income of 2022. The shares are to be traded ex-dividendas from May 9, 2023 with date of payout to be established in due course by the Executive Board.

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.	Trairi Wind Complex

ENGIE Brasil Energia

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Earnings Release 1Q23

Message from the Management

The country's reservoirs remained at high levels thanks to continuing favorable hydrology in 2023, consequently enhancing the combination of hydropower generation - which acts as a battery for the National Integrated System (SIN) - with the intermittence of wind and solar sources in which the Company has invested to expand capacity of recent. While positive hydrology has driven energy settlement prices lower in the short-term, we maintained the stability and predictability of results due to good portfolio management, which guarantees a high level contracting; business diversification, which brough greater exposure to regulated businesses - such as transmission and gas transportation; and energy contracts signed in the Regulated Contracting Environment (ACR).

The Company reported total net operating revenue of R$ 2.9 billion in the first quarter 2023, (-4.9% vs 1Q22), mainly a reflection of a R$ 128 million reduction in transmission line construction revenue and the decline of R$ 29 million in transaction business in the short-term market. This result was attenuated by higher energy volumes and net average selling prices, both contributing an additional R$ 86 million between compared periods.

Ebitda saw growth of 9.1% in relation to 1Q22 to reach R$ 2.1 billion in 1Q23, a consequence of the effects mentioned previously in addition to the greater contribution from the corporate stake in Transportadora Associada de Gás S.A. (TAG) (+ R$ 75 million) and the energy transmission segment (+ R$ 53 million). ENGIE Brasil Energia's net income presented, in addition to the factors previously listed, a positive effect of R$ 104 million on the net financial result, in order to register a growth of 36.7% compared to the same period last year, totaling R$ 882 million in 1Q23.

Our financial solidity based on a conservative and disciplined profile, had kept us in a "AAA" position since 2012 in the National Long-Term Rating. In 2022, we had another reaffirmation, by the risk rating agency Fitch Ratings of ENGIE Brasil Energia's foreign currency Long-Term IDRs (Issuer Default Ratings) at 'BB' (one notch above sovereign rating) and the Long- Term National Rating at 'AAA (bra)' for the Company's senior unsecured debenture issues. The outlook for corporate ratings is stable. This solid credit quality bodes well for the current growth scenario we are experiencing.

ENGIE Brasil Energia's activity is a strategic one in the drive to meet global targets and the ENGIE Group's commitments for reducing emissions. Between 2016 and 2022, more than R$ 20 billion were invested in the expansion of installed renewable energy capacity, gas transportation and transmission infrastructure, consequently representing a focus on assets promoting the energy transition with investments increasing by a factor of four when compared to the preceding years.

In the energy transmission segment, we concluded the implementation in February of the Novo Estado Transmissora de Energia, a project with 3,634 towers installed over a distance of 1,800 kilometers between the states of Tocantins and Pará. Similarly, work was completed on the Gralha Azul Transmission System, this with 900 kilometers of transmission lines in the state of Paraná. Both projects were finalized before the deadline established by the National Electric Energy Agency (Aneel) and are already recording high levels of uptime (99.99% in 1Q23).

The conclusion and entry into operation of these transmission systems consolidate ENGIE Brasil Energia's position in asset diversification, reaffirming its position as a platform for investments in infrastructure and energy in Brazil. And furthermore, indicative of the commitment to our purpose of acting to accelerate the energy transition in a fair and accessible way, allowing the offtake of clean energy to be carried in safety and efficiently to the country's leading consumer hubs. Not only are we now operating lines which transmit energy but also those that bring an additional stimulus for the development of important regions in Brazil.

The three projects currently under construction represent more than in the next few years, surpassing 10 GW of in our generator park in operation in Brazil.

Assú V Photovoltaic Complex

In addition to these projects, the Gavião Real Transmissora de Energia is an additional project under construction. Fruit of a successful bid by the Company at Aneel Transmission Auction 01/2022, the project involves the expansion of the Itacaiúnas Substation for supplying the energy distribution network in the state of Pará. The project is to be integrated into Novo Estado Transmissora de Energia.

Having an energy generation park with 95.9% of its installed capacity from renewable sources, the Company continues moving towards the finalization of the sale of the Pampa Sul Thermoelectric Plant, expected to take place over the next few months. With this, ENGIE Brasil Energia will become the country's largest energy generator solely from renewable sources.

ENGIE Brasil Energia

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Earnings Release 1Q23

And that is not all: we continue focused on expanding the availability of clean energy to the Brazilian electric energy matrix as a whole. Therefore, on March 23, we were able to celebrate the start in commercial operations of the first generator unit of the Santo Agostinho Wind Complex, under construction in the municipalities of Lajes and Pedro Avelino in the state of Rio Grande do Norte. Energy generated is being delivered to the Santo Agostinho substation and carried by transmission line to the Monte Verde Substation, where it is injected into the grid and transmitted nationwide. Synchronization with the electric energy system, authorized by Aneel, is an important development of the project.

In the case of the Serra do Assuruá Wind Complex, consisting of 24 wind farms to be installed in a single phase in the municipality of Gentio do Ouro, state of Bahia, other relevant advances representative of the start of implementation activities were recorded in the quarter. With the issue in March of the environmental license permitting the installation of the first half of the project, we began earthmoving at the substation and main construction work sites together with brush clearance, and earthmoving in preparation for the installation of access roads.

The Company recently received licenses for the installation of the Assú Sol Photovoltaic Complex, collector substation and connection bay, permitting a start to be made on activities in the field. Located in the municipality of Assú (RN), the project will have an installed capacity of approximately 752 MW and commercial capacity estimated at 234 average MW with energy being delivered to the Free Contracting Environment.

The three projects currently under construction represent more than 2 GW of installed capacity to the next few years in Brazil, total output of our energy generation park then to exceed 10 GW of clean energy when the new plants come on stream.

In addition to energy generation and transmission, the Company participates in the gas transportation segment through its stake in TAG. More recently, it has also been prospecting investments in green hydrogen which has been seen as a promising alternative to the energy transition, notwithstanding the accompanying technological and economic challenges involved. With our aim to be protagonists in solutions for the decarbonization of different industries and their supply chains, on April 6, we signed a Memorandum of Understanding with Invest Paraná for developing large scale projects for production of green hydrogen in the state of Paraná.

Confident in the country's growth capacity, the Company remains alert to changes in the regulatory scenario. For example, we are seeing a fresh possibility for exporting electric energy from hydropower plants to neighboring countries, opening relevant opportunities to the sector, and strengthening the region's energy integration in South America. Again, with respect to the expansion of the Free Contracting Environment (ACL), ENGIE Brasil Energia has intensified its strategy for digitalizing customer service and energy contracts management, such as the Energy Place and in addition to products formatted to offer a series of solutions enabling us to respond with agility and reliability to different customer profiles classifying to join the Free Energy Market.

As part of our commitment to transparency, in April we published our Sustainability Report 2022, wherein we report economic, operational, and socio-environmental indicators reflecting the Company's evolution in aspects which are significant to the businesses and to ESG guidelines, encompassing care for the planet, people and governance. We invite everyone to read this important document, now available in our website in Portuguese- soon in English as well.

Reconciling economic performance with a positive impact on people and planet, we continue to base our activities in alignment to the 2030 Sustainable Development Agenda, with corporate guidelines endorsing the transversal nature of sustainability. We preserve the relationship and engagement that we have with stakeholders as fundamental axes of our social license to operate. We go beyond simply complying with the legislation, maintaining commitments publicly assumed and enshrined in our Non-Financial Objectives which include aspects linked particularly to the generation of renewable energy, promotion of gender equity and combatting climate change.

Together we act to prosper without leaving anyone behind!

Good reading!

Eduardo Antonio Gori Sattamini	Marcelo Cardoso Malta
Chief Executive and Investor Relations Officer	Chief Financial Officer

ENGIE Brasil Energia

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