IBOVESPA Brasília, August 13th, 2020 - Net Income Margin ... · an average effect of -1.67% for...

Earnings Release – 2Q20

IBOVESPA

Brasília, August 13th, 2020 - Equatorial Energia S.A. (B3: EQTL3; USOTC: EQUEY) announces today its results for the second quarter (2Q20) and first six months of 2020 (1H20).

Consolidated Adjusted EBITDA reached R$ 857 million on the quarter. Equatorial ended the quarter with adjusted Net Income of R$ 387 million (+22.5% vs 2Q19).

► Consolidated Adjusted EBITDA reached R$ 857 million, dropping 9.2%, mainly impacted by Maranhão and Pará DisCos.

► Piauí and Alagoas recurring EBITDA reached R$ 42 million, a raise of 38% when compared to the 2Q19 and R$ 56 million, a drop of 5%,

respectively.

► Equatorial ended the quarter with R$ 6.0 billion in consolidated cash.

► Total billed volume reached 5,349 GWh, a consolidated growth of 3.2% when compared to the same period of the last year. If we disconsider

the adjustment of the billing process in the 2Q19 in Alagoas, consolidated volume on the 2Q20 when compared to the 2Q19 drops 1.5%.

► Total losses in Piauí dropped for the fifth consecutive quarter, ending the quarter at 22.9%, a drop of 0.4 p.p, In Alagoas, losses on the

quarter decreased for the third consecutive quarter and reached 24.0%, retreating 5.8 p.p.. In Maranhão, energy losses ended the 2Q20 at

18.2% of the injected energy, an increase of 0.2 p.p when compared to the 1Q20. In Pará, total losses ended the 2Q20 at 29.8% of the

injected energy, growing 0.3 p.p..

► In Pará, Alagoas and Piauí the quality indicators improved when compared to the last quarter, with a highlight to Alagoas, where the DEC

indicator ended the 2Q20 in 23.9 hours, improving 10.5%, and the FEC indicator improved 7.3%, ending the 2Q20 in 11.5 times. In Maranhão,

where the quality indicators are already very low, DEC and FEC ended the 2Q20 presenting a slightly higher number when compared to the

1Q20.

► In the 2Q20, Equatorial consolidated investments (including the transmission segment, Piauí and Alagoas) reached R$ 601 million, 52.9%

smaller than the investments made on the 2Q19, due to the proximity of the conclusion of greenfield transmission projects and the revision

of investment plans on the DisCos, due to the Covid-19 pandemic.

► In the Transmission segment, the average level of construction works was of 84%, with 85% of the long term financing disbursed, equivalent

to R$ 3.5 billion.

► In July, ANEEL defined the amounts for the RAP (Allowed Annual Revenue) for the transmission concessionaries in the 2020-2021 cycle, with

an average effect of -1.67% for the company.

► In August, ANEEL concluded Equatorial Pará’s Tariff Adjustment Process,in which the average effect on the consumer is 2.68% increase in

tariff. In this Adjustment, the company’s Parcel B reached R$ 2.0 billion.

Financial Highlights (R$ MM) 2Q19 2Q20 Var. 1H19 1H20 Var.

Net Operating Revenues (NOR) 4,376 3,482 -20.4% 7,736 7,689 -0.6%

Adjusted EBITDA (Quarter) 943 857 -9.1% 1,547 1,926 24.5%

EBITDA Margin (% NOR) 21.6% 24.6% 3.0 p.p. 20.0% 25.0% 5.1 p.p.

Adjusted EBITDA (Last 12 monts) 2,779 4,730 70.2% 2,779 4,730 70.2%

Adjusted Net Income 316 387 22.5% 436 762 74.8%

Net Income Margin (% NOR) 7.2% 11.1% 3.9 p.p. 5.6% 9.9% 4.3 p.p.

Net Income per Share (R$ / share) 1.57 1.92 22.1% 2.16 3.77 74.7%

Investments 1,276 601 -52.9% 2,188 1,167 -46.7%

Net Debt 9,936 10,933 10.0% 9,936 10,933 10.0%

Net Debt / Adj EBITDA (Last 12 months) 3.6 2.3 -1.3 x 3.6 2.3 -1.3 x

Cash / Short Term Debt 2.2 2.2 0 x 2.2 2.2 0 x

Financial Highlights (R$ MM) 2Q19 2Q20 Var. 1H19 1H20 Var.

EQTL Maranhão 248 203 -18.0% 448 431 -4%

EQTL Pará 267 219 -18.1% 466 530 14%

EQTL Piauí 30 42 38.3% 65 95 46%

EQTL Alagoas 59 56 -5.1% (65) 110 -269%

Operating Highlights 2Q19 2Q20 Var. 1H19 1H20 Var.

Sold Energy (GWh) 5,181 5,349 3.2% 10,437 10,929 4.7%

Number of Consumers ('000) 7,535 7,709 2.3% 7,535 7,709 2.3%

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1. Conference Call

CONFERENCE CALL IN PORTUGUESE WITH

SIMULTANEOUS TRANSLATION TO ENGLISH

MONDAY, AUGUST 17, 2020

11H00 (BRAZILIAN TIME ZONE)

10H00 (US-EDT )

PHONES: +55 11 3181-8565/ +55 11 4210-1803

+1 412 717-9627/ +1 844 204-8942

CODE: EQUATORIAL

► Participants should connect approximately 10 minutes before the start of the call.

► SLIDES AND WEBCAST: The presentation slides will be available for viewing and download on the investor

relations section of our website http://www.equatorialenergia.com.br/ri as of the date of the calls. The audio

of the calls will be transmitted live on the internet on the same site, remaining available after the event.

Investor Relations

► E-mail: [email protected]

► Website: www.equatorialenergia.com.br

mailto:[email protected]

http://www.equatorialenergia.com.br/

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1.CONFERENCE CALL ........................................................................................................................................................................... 2

2. SHAREHOLDER’S STRUCTURE .......................................................................................................................................................... 4

3. TRANSMISSION ................................................................................................................................................................................ 4

4. OPERATING PERFORMANCE ............................................................................................................................................................ 8

5. ECONOMIC AND FINANCIAL PERFORMANCE ................................................................................................................................ 15

6. REGULATORY HIGHLIGHTS ............................................................................................................................................................ 29

7. INDEBTEDNESS .............................................................................................................................................................................. 32

8. INVESTMENTS ................................................................................................................................................................................ 35

9. CAPITAL MARKET ........................................................................................................................................................................... 36

10. SERVICES PROVIDED BY THE INDEPENDENT AUDITORS .............................................................................................................. 36

ANNEX 1 – MANAGER RESULTS - ISOLATED SYSTEM - EQUATORIAL PARÁ (R$ MILLION) ................................................................ 36

ANNEX 2 – INCOME TAX AND SOCIAL CONTRIBUTION RATE (R$ MILLION) ..................................................................................... 37

ANNEX 3 – CONSOLIDATED INCOME STATEMENT (R$ MILLION) ...................................................................................................... 38

ANNEX 4 – INCOME STATEMENTS PER COMPANY (R$ MILLION) ..................................................................................................... 44

ANNEX 5 – BALANCE SHEET (R$ MILLION) ........................................................................................................................................ 45

4

2. Shareholder’s Structure

The information contained in this section reflects the current shareholding structure, as it is in the same date of this

Earnings Release. These positions reflect a monitoring made by the Company.

3. Transmission

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Currently, Equatorial Energia, through Equatorial Transmission, has 5 transmission line projects, that are at the

preoperational stage, 2 transmission lines fully operational, 1 transmission line almost fully operational, and 100%

direct stake at Intesa, an operational transmission line.

3.1 Summary of the Projects

* With reinforcement

Base Date: 07/2020 – Updated with the 2020-2021 cicle.

In July 2020, Intesa went through its tariff review, where the revenue coming from reinforcements and improvements

was reduced to reflect the value of the investment actually disbursed, instead of the preliminary number based on the

regulatory estimate of the invested value. Due to the tariff review, becacuse of the new revenue number, it’s necessary

to refund the received revenues until June/2020, resulting in R$ 8 million per year devolution until the next tariff

review, in 2024. The value of R$ 160 million on the chart above already reflects the net value, considering this

temporary refund.

3.2 Revenues Breakdown

Lots 23 and 31 (SPVs 7 and 8) have partial revenues that, once concluded, even before the completion of the whole

lot, will already be eligible to receive revenues.

Below, we show the partial revenues breakdown for these SPVs :

3.3 Environmental Licenses and Construction Progress

Group 1

Group 2

Group 3

Group 4

Group 5

Lot 23 – SPV 07 %Annual

Revenues

Line 500 kV Vila do Conde - Marituba & SE Marituba 60.6% 62

2 lines, 230 kV Guamá-Utinga 6.8% 7

Marituba Substation 19.0% 19

Partial Revenues w/ Licensing 86.3% 88

LT 230 kV Marituba - Castanhal 13.7% 14

Total Annual Revenues 100.0% 102

Lot 31 - SPV 08 %Annual

Revenues

Altamira/Transamazônica 19% 27

LT Transamazônica/Tapajós II + Tapajós Substation 43% 61

Xingu-Altamira Transmission Line 10% 14

Synchronous Condenser - Rurópolis 13% 19

Total (in operation) 85% 120

Synchronous Condenser - Tapajós Substation 15% 21

Overall Total (in operation and construction) 100% 142

Reinforcement at SE Xingu 3

Overall Total (w/ Reinforcement) - 145

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Since October 2019, Equatorial has the Enviromental Licences for the instalation of 100% from all the 8 greenfield

projects .

Below, we show the development of the construction in each SPV, as of June 2020, according to the following criteria:

For each SPV, the weighing of the physical development between lines and substations is based in the estimated capex

for each part. Within this, each line is calculated per construction phase: (i) track clearing – 10%; (ii) foundations – 30%;

(iii) tower assembly – 30%, and (iv) cable launching – 30%.

Construction Works SPVs

RAP

49.6%

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3.4 Long Term Funding

100% of the funding needs for all the SPVs is already secured, considering an approximate 80% leverage for each

project. From the total secured, 85% has already been disbursed (R$ 3.5 billion), necessary funding to cover the

progress of the construction. The main funding was obtained from 3 different sources – BNDES, Banco do Nordeste

and FDA (Amazon Development Fund) – being completed by infrastructured debentures to reach the leverage goal for

each SPV.

SPV Source Secured Disbursed %

Banco do Nordeste 343 338

Debentures 55 55

Total 398 393 99%


Debentures 45 45

Total 398 395 99%


Debentures 90 90

Total 515 487 95%

SPV 4 BNDES 822 804 98%


Debentures 66 66

Total 422 344 81%

SPV 6 BNDES 419 378 90%

FDA 293 136

Debentures 130 130

Total 423 266 63%

FDA 495 194

Debentures 189 189

Total 684 383 56%

Total Equatorial Transmissão 4,081 3,449 85%

SPV 1

SPV 8

SPV 7

SPV 5

SPV 3

SPV 2

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4. Operating Performance

The operating information contained in this section is pro forma and reflects 100% of Equatorial Distribuição

Maranhão, Pará, Piauí and Alagoas.

For comparison purposes, we consolidated Alagoas’ figures since the 1Q19.

4.1 Electric Energy Sales – Consolidated by Class

In the 2Q20, captive and free markets energy consumption increased by 3.2% on a consolidated basis, considering the

combined volumes from Maranhão, Pará, Piauí e Alagoas. Disconsidering the the adjusment made on the 2Q19, the

first quarter consolidating Equatorial Alagoas results, the consolidated growth on the quarter had a drop of 1.5%.

Consumption Class (MWh) 2Q19 2Q20 Var. 1H19 1H20 Var.

Consolidated (MA + PA + PI + AL)

Residential 2,260,736 2,657,697 17.6% 4,623,855 5,207,364 12.6%

Industrial 263,551 212,127 -19.5% 526,633 438,642 -16.7%

Commercial 932,331 757,159 -18.8% 1,859,250 1,690,271 -9.1%

Others 1,068,161 1,051,267 -1.6% 2,144,234 2,184,336 1.9%

Total (Captive) 4,524,779 4,678,250 3.4% 9,153,972 9,520,614 4.0%

Industrial 417,900 434,694 4.0% 834,474 911,334 9.2%

Commercial 195,740 189,370 -3.3% 367,833 408,580 11.1%

Others 2,843 6,225 119.0% 5,460 9,095 66.6%

Free Consumers 616,483 630,289 2.2% 1,207,767 1,329,009 10.0%

Connection - Others DisCos 39,296 40,097 2.0% 75,086 79,608 6.0%

Total (Captive + Free)* 5,180,558 5,348,636 3.2% 10,436,825 10,929,230 4.7%

(*) Considers captive, free, connection and own consumption

Consumption Class (MWh) 2Q19 2Q20 Var. 1H19 1H20 Var.

Equatorial Maranhão 1,551,130 1,561,073 0.6% 3,031,959 3,115,697 2.8%

Equatorial Pará 2,088,655 2,036,276 -2.5% 4,043,040 4,125,587 2.0%

Equatorial Piauí 896,323 869,112 -3.0% 1,755,614 1,773,860 1.0%

Equatorial Alagoas 644,448 882,175 36.9% 1,606,213 1,914,086 19.2%

Total (Captive + Free) 5,180,556 5,348,636 3.2% 10,436,826 10,929,230 4.7%

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Analyzing the figures individually, we would like to highlight:

EQUATORIAL MARANHÃO

Energy sales in Equatorial Maranhão's captive and free markets grew by 0.6% in 2Q20 compared to the same period

in 2019, despite all the effects related to the Covid-19 pandemic.

The classes that most contributed positively to this behavior were Residential, Industrial and Rural, which together

accounted for 67% of the total energy distributed by Equatorial Maranhão in the quarter and increased consumption

by 9.8% when compared to the same quarter of the previous year.

In the residential segment, there was an increase of 8.0%, due to the need for social distancing, the higher average

temperature in the period and the increase of just over 19 thousand consumers in the quarter, adding about 7 GWh.

The industrial segment grew 13.7% in the quarter, strongly impacted by the resumption of mining activity in the north

of the state. In addition, another highlight of the industrial class in the quarter was the manufacturing sector of non-

metallic mineral products, whose representation in the industrial market is around 22%, grew by 9.7% in the period.

The commercial segment decreased by 17.5% in 2Q20 compared to the same period last year. This negative behavior

is related to the isolation measures adopted to contain the transmission of Covid-19. In the São Luís Island region,

between May 5 and 17, a total lockdown of all non-essential commercial activities was decreed and rules for the traffic

of people and vehicles were adopted to reduce mobility in the region. At the end of May, the reopening of commerce

in the State began.

EQUATORIAL PARÁ

In Pará, the volume of energy distributed decreased by 2.5% in 2Q20 in relation to the same period of the previous

year, mainly explained by the industrial, commercial and public sector, with a decrease of 9.8%, 14.6% and 27.9%,

respectively. Together, these classes represent 41% of total consumption.

Billed Volume - MWh

MWh Maranhão Pará Piauí Alagoas Total Maranhão Pará Piauí Alagoas Total

Residential 861,436 952,468 446,318 397,475 2,657,697 1,679,244 1,843,537 884,724 799,859 5,207,364

Industrial 48,796 99,184 30,326 33,821 212,127 97,331 205,608 64,031 71,673 438,642

Commercial 197,594 301,033 130,397 128,135 757,159 430,450 646,890 306,282 306,649 1,690,271

Others 325,317 353,481 194,075 178,395 1,051,267 645,863 729,876 388,473 420,124 2,184,336

Total (Captive) 1,433,142 1,706,166 801,116 737,825 4,678,250 2,852,887 3,425,911 1,643,510 1,598,305 9,520,614

Industrial 72,266 233,192 9,911 119,324 434,694 141,550 495,486 20,177 254,120 911,334

Commercial 53,420 94,769 20,409 20,773 189,370 115,760 199,950 40,080 52,790 408,580

Others 814 2,149 3,262 - 6,225 1,594 4,239 3,262 - 9,095

Free Consumers 126,500 330,110 33,581 140,097 630,289 258,904 699,675 63,519 306,910 1,329,009

Connection - Others DisCos 1,430 34,415 4,253 40,097 3,906 66,831 8,871 79,608

TOTAL (cativo + livre + conexão) 1,561,073 2,036,276 869,112 882,175 5,348,636 3,115,697 4,125,587 1,773,860 1,914,086 10,929,230

Chg % (2Q20 vs 2Q9) 0.6% -2.5% -3.0% 36.9% 3.2% 2.8% 2.0% 1.0% 19.2% 4.7%

Billed Volume - MWh

MWh Maranhão Pará Piauí Alagoas Total Maranhão Pará Piauí Alagoas Total

Residential 797,464 866,403 418,607 178,262 2,260,736 1,577,343 1,660,841 829,377 556,294 4,623,855

Industrial 50,930 126,939 38,612 47,070 263,551 101,753 248,751 72,804 103,325 526,633

Commercial 246,423 362,204 183,243 140,461 932,331 485,105 696,225 360,330 317,590 1,859,250

Others 339,187 387,866 199,061 142,047 1,068,161 649,964 756,634 383,836 353,800 2,144,234

Total (Captive) 1,434,003 1,743,412 839,522 507,841 4,524,778 2,814,166 3,362,451 1,646,347 1,331,009 9,153,973

Industrial 55,571 241,632 13,019 107,678 417,900 101,655 489,723 23,598 219,498 834,474

Commercial 57,672 101,498 11,764 24,806 195,740 110,194 186,867 23,197 47,575 367,833

Others 730 2,113 2,843 1,461 3,999 5,460

Free Consumers 113,973 345,243 24,782 132,484 616,482 213,310 680,589 46,795 267,072 1,207,766

Connection - Others DisCos 3,154 32,019 4,123 39,296 4,483 62,472 8,131 75,086

Total (Captive + Free+ Connection ) 1,551,130 2,088,655 896,323 644,448 5,180,556 3,031,959 4,043,040 1,755,614 1,606,213 10,436,825

1H192Q19

2Q20 1H20

10

The consumption of the residential class, which represents 47% of Equatorial Pará's total sales volume in 2Q20,

increased by 9.9% over the same period last year, influenced by favorable weather conditions and measures of social

distancing.

The industrial segment decreased by 9.8% in the quarter, mainly influenced by the reduction in consumption in the

extraction of non-metallic minerals, pulp & paper and metallurgy sectors.

In the commercial segment, there was a decrease of 14.6%, influenced by the slowdown of the economy in some

sectors that have high representation in the class.

Finally, the other classes (rural, public power, public lighting, public service and own consumption), representing 17%

of total consumption, had a reduction of 8.8% in energy consumption compared to 2Q20, with emphasis on the Public

Power and Public Lighting, which represent 61% of the Others class, and together they had a decrease of 6.2% in 2Q20.

EQUATORIAL PIAUÍ

Energy sales in the captive and free markets of Equatorial Piauí decreased by 3.0% in 2Q20 compared to the same

period in 2019, largely explained by the restrictive measures adopted to combat Covid-19, which negatively impacted

consumption of energy in the period, especially the Industrial class.

Residential class consumption, which represents 53% of Equatorial Piauí's total sales, grew 6.6% in 2Q20 compared to

the same period last year. The growth was the result of the scenario of the Covid-19 crisis. With the determination of

social isolation in the State, most of the office activities have changed to home-office mode, causing an increase in

household consumption. As a consequence, average consumption increased by 9.1%, incorporating 37 GWh in the

quarter, offsetting the reduction of 26 thousand customers, who entered the rural class, and which represented 9

GWh less in consumption. Thus, 2Q20 ended with a net increase of 28 GWh for this class in the quarter.

The industrial class captive and free energy sales, which represents 5% of Equatorial Piauí's total sales, decreased by

22.1% in 2Q20 compared to 2Q19. The negative performance of the class is explained, mainly, by the restriction

measures adopted in the state, in which large clients had their activities suspended or reduced.

Representing 18% of Equatorial Piauí's total sales, captive and free sales by the commercial class decreased by 22.7%

in 2Q20 compared to 2Q19. The commercial class suffered a great impact from social isolation in the state, as with the

paralyzed activities, malls, stores and shopping centers showed a reduction of approximately 80% in consumption

during the pandemic period. In addition, schools and hotels also had their activities suspended and reduced on the

same scale.

EQUATORIAL ALAGOAS

Energy sales in the captive and free markets of Equatorial Alagoas increased by 36.9% in 2Q20 compared to the same

period last year, explained by the billing adjustment made in 2Q19, which was the first quarter of consolidation of

results by the Equatorial Group. Without this adjustment, volume in 2Q20 when compared to 2Q19 in Alagoas would

have fallen by 1.6%. The following variations are shown excluding this non-recurring effect in 2Q19:

The residential segment increased by 13.1% in the quarter, explained by the social isolation measures adopted on

behalf of Covid-19. Average consumption increased by 16.1%, from 111 kWh/customer to 129 kWh/customer.

The Industrial class of Alagoas decreased by 4.3%, mainly explained by the reduction in industrial activity in the state,

due to Covid-19.

The commercial class reported a 23.6% reduction in 2Q20 compared to 2Q19, influenced by the downturn in the

economy, in some branches with high representation in the class, such as Commerce and Services.

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The Others line (referring to rural, public power, public lighting, public service and own consumption), representing

20.2% of total consumption, had an increase of 25.6% in energy consumption compared to 2Q20. is largely explained

by the migration of customers to the rural class

4.2 Number of Consumers - Consolidated by Class

It is worth mentioning the 33.1% growth in low-income consumers compared to 2Q19, as a result of the Company's effort to register consumers eligible for the benefit, which intensified after the beginning of Covid-19. Among the efforts made, we highlight the possibility of registering new customers in this class through WhatsApp, in addition to carrying out campaigns with the municipalities and developing tools that integrate information and facilitate registration, in order to ensure that families that are entitled to social tariff can enjoy the benefit. As a result of the pandemic, ANEEL, through Resolution 878, suspended the registration of consumers in this category.

Number of Consumers 2Q19 2Q20 Var.

Consolidated (MA + PA + PI + AL)

Residential - Regular 5,026,122 4,577,547 -8.9%

Residencial - Low Income 1,646,709 2,192,034 33.1%

Industrial 16,515 15,835 -4.1%

Commercial 476,400 463,491 -2.7%

Others 369,077 460,581 24.8%

Total Equatorial Energia 7,534,823 7,709,488 2.3%

Number of Consumers

Maranhão Pará Piauí Alagoas Total Maranhão Pará Piauí Alagoas Total

Residential - Regular 1,594,238 1,777,396 841,137 813,351 5,026,122 1,507,454 1,655,639 690,483 723,971 4,577,547

Residencial - Low Income 669,690 526,972 293,985 156,062 1,646,709 776,140 692,399 418,493 305,002 2,192,034

Industrial 7,533 4,068 2,960 1,954 16,515 7,365 3,947 2,653 1,870 15,835

Commercial 145,408 173,763 94,208 63,021 476,400 139,229 169,751 89,471 65,040 463,491

Others 92,721 196,247 58,449 21,660 369,077 133,916 195,356 96,318 34,991 460,581

Total 2,509,590 2,678,446 1,290,739 1,056,048 7,534,823 2,564,104 2,717,092 1,297,418 1,130,874 7,709,488

Var. % (2Q20 vs 2Q19) 2.2% 1.4% 0.5% 7.1% 2.3%

2Q19 2Q20

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4.3 Energy Balance

Energy injected in Maranhão grew 1.3% in the quarter, driven by slightly higher average temperatures in the quarter,

lower rainfall in the period and also by the mining activity in the State, which contributed with 49% of the increase in

the quarter. In June, the volume grew by 4.1%, showing a gradual recovery in activities.

In Pará, there was a reduction of 0.7% in the quarterly volume of injected energy, negatively impacted by the stoppage

of several economic activities in the pandemic scenario. As of June, the scenario started to reflect a positive result with

the gradual reopening of activities, with the injected volume increased by 1.2% this month.

Piauí decreased 4.8% in 2Q20, negatively impacted by the adoption of social isolation, since important sectors of the

economy had their activities suspended, significantly reducing energy consumption, thus reflecting on the total volume

of injected energy in the State. In June, the volume decreased by 3.5%, lower than the previous months, which

decreased by 6.0% in May and 4.9% in April, showing a gradual recovery in activities.

In Alagoas, the 5.9% reduction in injected energy, explained by the stoppage of several economic activities during the

pandemic. In June, the decline was 0.4%, showing a sharp deceleration in the fall, as a result of the gradual reopening

of the local economy.

Energy Balance (MWh) 2Q19 2Q20 Var. 1H19 1H20 Var.

Maranhão

Required Energy 1,892,664 1,917,923 1.3% 3,674,581 3,794,583 3.3%

Injected Energy 1,892,664 1,917,923 1.3% 3,674,581 3,794,583 3.3%

Distributed Energy* 1,547,976 1,559,643 0.8% 3,027,476 3,111,791 2.8%

Connection w/ Other DisCos 3,154 1,430 -54.7% 4,483 3,906 -12.9%

Total Losses 341,534 356,851 4.5% 642,622 678,886 5.6%

Pará

Interconnected System 2,945,800 2,923,331 -0.8% 5,733,908 5,807,054 1.3%

Isolated Systems 72,084 73,493 2.0% 142,244 147,637 3.8%

Injected Energy 3,017,884 2,996,824 -0.7% 5,876,152 5,954,691 1.3%

Distributed Energy* 2,088,655 2,036,276 -2.5% 4,043,040 4,125,587 2.0%

Total Losses 929,229 960,548 3.4% 1,833,112 1,829,104 -0.2%

Piauí

Interconnected System 1,182,643 1,125,802 -4.8% 2,308,954 2,243,130 -2.9%

Injected Energy 1,182,643 1,125,802 -4.8% 2,308,954 2,243,130 -2.9%

Distributed Energy* 864,305 834,698 -3.4% 1,693,142 1,707,029 0.8%

32,019 34,415 7.5% 62,472 66,831 7.0%

Total Losses 286,320 256,690 -10.3% 553,340 469,270 -15.2%* Considers captive and free markets, and own consumption.

Alagoas

Interconnected System 1,235,400 1,162,545 -5.9% 2,551,604 2,548,058 -0.1%

Injected Energy 1,235,400 1,162,545 -5.9% 2,551,604 2,548,058 -0.1%

Distributed Energy* 640,325 877,922 37.1% 1,598,082 1,905,215 19.2%

4,123 4,253 -52.6% 8,131 8,871 -32.9%

Total Losses 590,952 280,370 -52.6% 945,391 633,972 -32.9%

* Considers captive and free markets, and own consumption.

13

Estimated Energy Purchase coverage levels:

In accordance to the current regulatory rules, distribution companies within 100% to 105% of energy contracting

should have their energy purchase expenditures fully passed through to tariffs.

For Equatorial Maranhão, Pará, Piauí and Alagoas, the energy purchase coverage (contraction) levels for 2020 were

104.6%, 104.4%, 108.3% and 102.7%, respectively. It is important to highlight that, due to Normative Resolution

885/2020, over-contracting resulting from the Covid-19 pandemic should be considered involuntary. Thus, the

percentages above already incorporate the adjustment estimate by this Resolution.

4.4 Energy Losses

In 2Q20, Equatorial Maranhão's energy losses are at a level that we already consider quite low, especially if we take

into account the fact that its technical losses are 11.94%. In Pará, after the beginning of the strengthening of the

network typology in some specific areas of the concession, in 2Q20 there was stability, due to the restrictions to

combat losses, imposed by Covid-19.

In Piauí, the process of combating losses continues, and for the fifth consecutive quarter it is possible to observe a

drop in the percentage of losses.

In Alagoas, given the start of the process of combating losses in 3Q19, with the teams working in the field, it is already

possible to observe a sharp drop in the percentage of this quarter, showing a reduction of 5.8 p.p. in total losses in the

last 12 months. It is worth noting that in Equatorial Alagoas there was a billing adjustment in 2Q19. Without this

adjustment, the percentage of total losses/injected in 1Q20 would have been 24.8%. It is the third consecutive quarter

of loss reduction in Alagoas.

4.5 Collection and Delinquency Provision (PDA)

DisCos 2Q19 3Q19 4Q19 1Q20 2Q20 Regulatory

Total Losses / Injected Energy

Equatoria l Maranhão 17.7% 17.8% 18.0% 18.0% 18.2% 18.0%

Equatoria l Pará 30.1% 30.3% 30.1% 29.5% 29.8% 27.5%

Equatoria l Piauí 27.8% 27.5% 24.3% 23.3% 22.9% 20.3%

Equatoria l Alagoas 30.7% 31.0% 30.2% 29.8% 24.0% 20.8%

Non-Technical Losses / LT

Equatoria l Maranhão 8.8% 9.0% 9.3% 9.4% 9.6% 9.3%

Equatoria l Pará 43.7% 41.0% 40.2% 38.6% 38.9% 33.5%

Equatoria l Piauí 29.8% 29.2% 21.8% 19.5% 18.7% 13.9%

Equatoria l Alagoas 51.6% 52.6% 49.9% 48.5% 29.6% 22.0%

PDA / GOR

(quarterly)2Q19 2Q20 Chg. 1H19 1H20 Chg.

Equatoria l Maranhão 1.4% 3.5% 2.1 p.p. 1.9% 2.4% 0.5 p.p.

Equatoria l Pará 2.8% 6.8% 3.9 p.p. 1.7% 3.9% 2.1 p.p.

Equatoria l Piauí -1.8% 3.9% 5.6 p.p. -0.1% 3.4% 3.4 p.p.

Equatoria l Alagoas -29.3% 3.9% 33.1 p.p. -4.4% 3.3% 7.6 p.p.

¹Excludes Construction Revenues

14

The provisioning results for debtors of the Group's companies reflect a scenario of an increase in defaults due to the

crisis and a fall in economic activity and the prohibition of cuts in the residential class imposed by ANEEL (Normative

Resolution nº 878/2020).

The increase in provisioning was influenced by the variation in the balance of accounts receivable and the aging of the

portfolio. In the specific case of Pará, the history of receipts by aging ranges leads to higher provisioning percentages

than the history of Maranhão, especially in the ranges between 30 and 180 days.

4.6 Quality Indicators – DEC & FEC

The quality and efficiency of the distribution concessionaires’ grid is measured by the DEC (Duration Equivalent of

Interruption per Consuming Unit that measures the equivalent length of interruptions per consumer, measured in

hours per consumer for a given period) and FEC (Frequency Equivalent of Interruption per Consuming Unit, measured

as the number of interruptions per consumer for a given period).

Maranhão and Pará remain with their quality indicators (DEC & FEC) substantially below regulatory levels

(remembering that these indicators measure the frequency and the period of the supply disruption, thus, the lower,

the better).

In the new DisCos, it was necessary to review the methodology for calculating the DEC and FEC indices, and in Piauí

the calculation was adjusted based on the consolidation of Equatorial and in Alagoas the adjustment was made

retroactively. In both cases, the adjustments made resulted in a worsening of the numbers, but today the figures for

2Q20 and 1Q20 are already perfectly comparable.

In this 2Q20, the new distributors showed improvement in the DEC, with Equatorial Alagoas standing out, which

improved from 26.7 hours to 23.9 hours, down 10.5% in 2Q20 compared to 1Q20. In 2Q20, the new DisCos also showed

improvement in FEC, with all DisCos being below the regulatory limit.

DisCos 2Q19 3Q19 4Q19 1Q20 2Q20 Regulatory

DEC

Equatorial Maranhão 13.6 13.4 13.7 13.0 13.9 17.4

Equatorial Pará 23.2 23.3 21.8 21.9 20.6 27.6

Equatorial Piauí 31.0 32.3 34.9 34.6 33.4 20.8

Equatorial Alagoas 55.4 52.7 38.7 26.7 23.9 15.5

FEC

Equatorial Maranhão 6.5 6.4 6.6 5.5 5.8 10.8

Equatorial Pará 14.1 13.5 12.2 11.7 11.0 22.2

Equatorial Piauí 13.6 13.6 13.1 13.7 13.6 14.1

Equatorial Alagoas 19.0 18.1 16.3 12.4 11.5 12.9

15

5. Economic and Financial Performance

The information in this section reflect the consolidation of the Financial Statements of Equatorial Energia.

5.1 Consolidated Economic and Financial Performance

Income Statement (R$ MM) 2Q19 2Q20 Var. 1H19 1H20 Var.

Gross Operating Revenues (GOR) 5,851 4,604 -21.3% 10,486 10,278 -2.0%

Net Operating Revenues (NOR) 4,376 3,482 -20.4% 7,736 7,689 -0.6%

Energy Purchase Cost (3,019) (2,026) -32.9% (5,323) (4,595) -13.7%

Operating Expenses (375) (583) 55.5% (853) (1,071) 25.6%

EBITDA 982 873 -11.1% 1,560 2,023 29.6%

Other Operational Revenues/Expenses (81) 0 -100.0% (34) (7) -78.8%

Depreciation (184) (162) -12.2% (304) (322) 5.7%

Service Income (EBIT) 798 712 -10.8% 1,256 1,701 35.4%

Financial Net Results (142) (65) -54.4% (231) (218) -5.8%

Goodwill Amortization (46) (56) 23.6% (51) (56) 11.2%

Operating Results 618 627 1.4% 989 1,442 45.8%

Income Tax (209) (153) -26.9% (322) (453) 40.9%

Minorities (67) (68) 1.6% (112) (143) 27.5%

Net Income 342 406 18.6% 555 846 52.4%

16

5.1.1 - Operating Revenues

Operating Revenues - Cemar 2Q19 2Q20 Chg. 1H19 1H20 Chg.

(+) Gross Supply Revenues 3.625 3.015 -17% 6.692 6.660 0%

Residential 1.922 1.699 -12% 3.590 3.722 4%

Industrial 196 143 -27% 367 316 -14%

Commercial 822 579 -29% 1.495 1.364 -9%

Other Segments 686 594 -13% 1.241 1.258 1%

(+) Industrial Overdemand / Reactive Energy (R$ MM) (10) (22) 118% (31) (43) -39%

(+) Supply (R$ MM) 41 28 -33% 111 106 -5%

(+) Other Revenues (R$ MM) 420 666 59% 777 1.105 42%

Low Income Subsidy 121 399 230% 335 543 62%

CDE Subvention 120 128 7% 106 242 129%

Grid Usage 104 120 16% 182 233 28%

Financial Asset Update 41 (19) 145% 81 2 -98%

Other Operating Revenues 36 37 5% 73 85 16%

(+) Parcel A Revenues and Others Financial Itens (127) (185) -46% (68) (189) -176%

(+) Construction Revenues - Distribution 575 437 -24% 882 833 -6%

(=) Gross Operating Revenues - Distribution 4.525 3.938 -13% 8.363 8.471 1%

(+) Maintence and Operation Revenue (Transmission) 7 6 -9% 17 12 -29%

(+) Financial Revenues - IRR update 27 - 100% 50 - 100%

(+) Construction Revenue - Transmission 1.167 370 -68% 1.832 1.207 -34%

(+) Energy Transmission 2 2 13% - 3 N/A

(+) Contract Asset Revenue 53 227 328% 85 390 356%

(+) Other Revenues 1 25 2368% 2 65 3795%

Gross Operating Revenues (R$ MM) 1.257 630 -50% 1.986 1.678 -16%

Gross Operating Revenues (R$ MM) 69 23 -67% 118 129 9%

(+) Deductions from Operating Revenues (R$ MM) (1.476) (1.109) -25% (2.750) (2.589) 6%

(+) Deductions from Transmission Revenues (117) (67) -43% (189) (170) 10%

PIS & Cofins Taxes (289) (241) -16% (620) (648) -4%

Consumer Charges (27) (27) -2% (54) (57) -6%

CDE (209) (91) -57% (366) (181) 51%

ICMS - State Tax (801) (673) -16% (1.475) (1.496) -1%

ISS - Municipality Tax (1) (0) -58% (5) (6) -19%

Quality Indicator Compensations (16) (9) -43% (32) (31) 2%

Others (16) - 100% (10) - 100%

(=) Net Operating Revenues (R$ MM) 4.376 3.482 -20% 7.716 7.689 0%

(-) Construction Revenues (R$ MM) 1.742 806 -54% 2.714 2.040 -25%

(=) Net Operating Revenues w/o Construction Rev (R$ MM) 2.634 2.676 2% 5.002 5.649 13%

17

On a consolidated basis, Equatorial's NOR, excluding Construction Revenue, grew by 2%, which can be explained mainly

by the R$ 174 million increase in Transmission’s contract asset revenue.

Operating Revenues

(R$ Millon) Maranhão Pará Piauí Alagoas Total Maranhão Pará Piauí Alagoas Total

(+) Gross Supply Revenues 845 1,237 510 423 3,015 1,863 2,691 1,120 986 6,660

Residential 515 675 279 230 1,699 1,124 1,456 613 529 3,722

Industrial 27 74 21 20 143 68 159 45 44 316

Commercial 129 259 100 91 579 314 586 238 225 1,364

Other Segments 174 228 110 81 594 357 489 224 188 1,258

(+) Industrial Overdemand / Reactive Energy (5) (11) (2) (3) (22) (10) (23) (4) (6) (43)

(+) Supply (R$ MM) 6 8 10 3 28 26 27 48 5 106

(+) Other Revenues 207 261 103 94 666 313 472 168 152 1,105

Low Income Subsidy 141 142 73 42 399 193 192 101 57 543

CDE Subvention 28 58 16 26 128 55 117 31 39 242

Grid Usage 33 57 9 21 120 40 126 23 44 233

Financial Asset Update (6) (12) (0) 0 (19) (2) 2 0 1 2

Financial Asset Write-off - - - - - - - - - -

Other Operating Revenues 11 16 5 5 37 26 35 13 11 85

(+) Parcel A Revenues (92) (75) (54) 36 (185) (120) (45) (82) 58 (189)

(+) Construction Revenues 130 166 96 45 437 265 314 175 79 833

(=) Gross Operating Revenues 1,091 1,585 664 598 3,938 2,336 3,436 1,425 1,275 8,471

(+) Deductions from Operating Revenues (261) (421) (181) (178) (1,042) (594) (987) (412) (396) (2,388)

PIS & Cofins Taxes (60) (90) (38) (53) (241) (149) (269) (86) (123) (626)

Consumer Charges (8) (11) (4) (4) (27) (17) (23) (9) (8) (57)

CDE (25) (36) (15) (15) (91) (51) (71) (29) (30) (181)

ICMS - State Tax (167) (284) (125) (98) (673) (372) (616) (282) (225) (1,496)

ISS - Municipality Tax (0) (0) (0) (0) (0) (1) (0) (0) (1) (2)

Quality Indicator Compensations (0) (0) (0) (8) (9) (4) (8) (5) (10) (27)

(=) Net Operating Revenues 830 1,164 483 419 2,897 1,742 2,449 1,013 878 6,083

(-) Construction Revenues 130 166 96 45 437 265 314 175 79 833

(=) Net Operating Revenues w/o Construction Rev 700 999 387 375 2,460 1,478 2,135 838 799 5,250

OK OK OK OK OK OK OK OK

Operating Revenues

(R$ Million) Maranhão Pará Piauí Alagoas Total Maranhão Pará Piauí Alagoas Total

(+) Gross Supply Revenues 1,122 1,502 648 353 3,625 2,174 2,886 1,279 896 7,235

Residential 660 776 343 144 1,922 1,288 1,480 678 425 3,871

Industrial 40 100 28 27 196 79 203 57 59 399

Commercial 209 353 151 108 822 408 679 300 241 1,628

Other Segments 212 274 126 74 686 399 524 244 171 1,338

(+) Industrial Overdemand / Reactive Energy (6) (13) 9 0 (10) (11) (25) 5 (1) (33)

(+) Supply 2 12 26 1 41 7 31 72 0 110

(+) Other Revenues 117 204 51 48 421 232 396 102 91 821

Low Income Subsidy 49 40 22 8 120 98 81 46 18 243

CDE Subvention 26 53 16 25 120 50 102 31 36 219

Grid Usage 17 62 7 17 104 33 119 13 35 200

Financial Asset Update 10 32 0 (2) 41 23 59 0 (5) 78

Other Operating Revenues 15 17 6 (1) 37 26 36 11 7 81

(+) Parcel A Revenues (55) (69) (46) 43 (127) (60) 5 (61) 456 340

(+) Gross Operating Revenues w/o Construction Rev 101 161 294 19 575 181 354 328 11 874

(=) Gross Operating Revenues 1,281 1,797 982 465 4,525 2,523 3,647 1,724 1,454 9,348

(+) Deductions from Operating Revenues (363) (622) (249) (109) (1,344) (734) (1,190) (500) (373) (2,798)

PIS & Cofins Taxes (71) (187) (43) 11 (290) (165) (355) (98) (84) (702)

Consumer Charges (9) (11) (5) (3) (27) (18) (22) (10) (12) (62)

CDE (58) (84) (36) (31) (209) (111) (158) (66) (67) (402)

ICMS - State Tax (222) (337) (162) (80) (801) (433) (641) (320) (197) (1,591)

ISS - Municipality Tax (0) (0) (0) (0) (1) (1) (0) (0) (0) (2)

Quality Indicator Compensations (4) (3) (3) (6) (15) (7) (13) (6) (13) (39)

(=) Net Operating Revenues 918 1,175 733 356 3,182 1,789 2,457 1,225 1,081 6,551

(-) Construction Revenues 101 161 294 19 575 181 354 328 11 874

(=) Net Operating Revenues w/o Construction Rev 817 1,014 439 337 2,607 1,608 2,102 897 1,071 5,678

2T19 1S19

2Q20 1H20

18

5.1.2 - Costs and Expenses

On a consolidated basis, Equatorial Energia's cost (considering manageable, non-manageable and construction

expenses) reached R$ 2.8 billion, a negative variation of 21%, mainly impacted by the lower construction cost, which

was R$ 712 million lower, and the costs of purchased energy, due to lower consumption.

Operating Expenses 2Q19 2Q20 Var. 1H19 1H20 Var.

R$ Million

(+) Personnel 78 134 72% 213 286 34%

(+) Materials 6 7 12% 12 15 23%

(+) Third Party Services 178 201 13% 340 395 16%

(+) Others (5) 52 -1129% 31 100 219%

(=) Reported PMSO 257 394 54% 597 796 33%

Piauí Adjustments 139 - 100% 154 (3) 102%

Alagoas Adjustments (62) - 100% (66) - 100%

Maranhão Adjustments (10) (9) 6% (10) (7) 32%

Pará Adjustments - (11) N/A - (11) N/A

Adjusted PMSO 324 373 15% 675 774 15%

PDA (80) 174 -316% 36 253 595%

% GOR (w/o Construction Revenues) -2.0% 5.0% 6.9 p.p. 0.5% 3.3% 581%

Contingencies Provision 60 13 -79% 81 25 -69%

Total Provisions (21) 186 -997% 116 278 140%

(+) Other Operating Expenses (Revenues) 72 (0) 100% 152 7 -95%

(+) Depreciation and Amortization 184 162 -12% 304 322 6%

Manageable Expenses 492 742 51% 1,169 1,403 20%#N/D #N/D

(+) Energy Purchase and Transmission 1,644 1,363 -17% 3,152 3,036 -4%

(=) Non-Manageable Expenses 1,644 1,363 -17% 3,152 3,036 -4%#N/D #N/D

(+) Construction Costs 1,374 662 -52% 2,170 1,559 -28%#N/D #N/D

TOTAL 3,511 2,768 -21% 6,491 5,998 -8%

19

Individually, we would like to highlight:

MARANHÃO

In 2Q20, personnel, material, third-party service and other (Opex) expenses totaled R$ 127 million, an increase of 2.4%

over 2Q19. The accumulated inflation in the last 12 months measured by the IPCA was 2.13% and the INPC was 2.35%.

Operating Costs

Maranhão Pará Piauí Alagoas Maranhão Pará Piauí Alagoas

Personnel 30 34 16 12 62 68 38 31

Profit Sharing 9 4 - 1 17 9 - 3

Material 2 1 1 1 5 3 2 2

Third Party Services 89 87 39 32 169 167 79 61

Others 5 8 1 3 9 11 4 5

Quality Indicators Compensations - - - (0)

PMSO 127 131 58 48 244 249 122 100

Personnel Adjusments (3)

Third Party Services Adjustments (8) (6) (6) (6)

Other Adjustments (1) (6) (1) (6)

Adjusted PMSO 118 119 58 48 237 237 119 100

PDA 34 96 22 21 50 121 43 39

% GOR (w/o Construction Revenues) 3.5% 6.8% 3.9% 3.9% 2.4% 3.9% 3.4% 3.3%

Provision for Contingencies 6 4 3 1 11 10 4 1

Provisions 40 100 25 22 62 130 46 40

Other Operating Expenses (Revenues) 0 (4) 3 0 1 4 2 (0)

Depreciation and Amortization 47 78 23 15 94 149 45 35

Manageable Expenses 214 305 109 85 401 533 215 174

Energy Purchase and Transmission 281 417 200 193 624 927 434 420

Grid and Connection Charges 57 99 30 51 122 - 72 109

Non-Manageable Expenses 338 517 230 244 746 927 506 529

Construction Cost 130 166 96 45 265 314 175 79

TOTAL 682 987 435 374 1,412 1,773 897 782

OK OK OK OK OK OK

R$ MM

Maranhão Pará Piauí Alagoas Maranhão Pará Piauí Alagoas

Personnel 31 32 (98) 82 62 66 (56) 132

Profit Sharing 8 2 4 1 12 - 8 2

Material 4 2 (1) (0) 6 4 0 1

Third Party Services 76 82 32 26 155 166 46 52

Others 12 3 (4) 29 16 9 (9) 34

Quality Indicators Compensations 3 6 5 13

PMSO 124 119 (70) 138 238 245 (18) 218

Personnel Adjutsments - - 137 - - - 133 -

Material Adjustments (2) - - - (2) - - -

Third Party Services Adjustments - - 2 - - - 12 -

Other Adjustments (8) - - (62) (8) - 9 (66)

Adjusted PMSO 114 119 69 76 229 245 136 152

PDA 17 46 (12) (131) 43 57 (1) (64)

% GOR (w/o Construction Revenues) 1.40% 2.8% -1.8% -29.3% 1.9% 1.7% -0.1% -4.4%

Provision for Contingencies 9 4 41 6 15 8 39 19

Provisions 25 50 29 (125) 59 65 39 (45)

Other Operating Expenses (Revenues) 3 2 67 - 5 80 67 -

Depreciation and Amortization 46 72 49 12 91 133 62 25

Manageable Expenses 198 244 74 26 393 523 150 198

Energy Purchase and Transmission 349 542 254 237 728 1,157 538 497

Grid and Connection Charges 53 92 33 25 106 - 82 61

Non-Manageable Expenses 402 635 287 262 834 1,157 620 558

Construction Cost 101 (32) 294 19 181 354 328 11

TOTAL 700 846 655 306 1,408 2,035 1,097 766

2Q20

2Q19

1H20

1H19

20

The Third Party Services account increased by R$ 13.0 million in the quarter, mainly due to the non-recurring effects

of R$ 8.0 million, including: (i) non-recurring effect of adjustment in invoices that will be reversed in 3Q20 ; (ii) non-

recurring effects of readjustment of commercial anchor contracts; (iii) non-recurring effect of adjustments related to

PIS/COFINS on retained services; and (iii) non-recurring effect of adjustments on service notes.

Opex adjusted for non-recurring effects totaled R$ 118 million in 2Q20, against R$ 114 million in 2Q19, representing

an increase of 4% due to the organizational redesign.

In 2Q20, the Provision for Doubtful Accounts (PDA) totaled R$ 34 million, an amount that represented 3.5% of gross

operating revenue. The percentage above the history presented by the Company is the result of the scenario of

increased defaults during the pandemic.

PARÁ

Opex (personnel, material, outsourced services and others) in 2Q20 was R$ 131 million, an increase of 9.2% compared

to 2Q19. Positive inflation in the period was 2.13% for IPCA and 2.35% for INPC.

In Personnel, there was an organizational redesign that resulted in an increase of R$ 2 million in 2Q20 compared to

2Q19. In Third Party Services, the increase of R$ 3.2 million is explained mainly by a non-recurring provision related to

emergency services and for the acquisition of generation systems. In Others, the amount of R$ 5.5 million higher refers

to the donation of resources to combat Covid-19.

Adjusted Opex totaled R$ 119 million in 2Q20, against R$ 120 million in 2Q19, that is, a 1.01% drop.

In 2Q20, Equatorial Pará set up a provision for receivables (PDA) in the amount of R$ 96 million, equivalent to 6.8% of

gross operating revenue (excluding construction revenue). As explained in item 4.5, the aging of Accounts Receivable

from customers with overdue debts in the period between 30 to 180 days, resulted in a detachment of the PDA volume

in relation to GOR when compared to the other disCos.

PIAUÍ

In 2Q20, personnel, material, third-party service and other (Opex) expenses totaled R$ 58 million, a reduction of 15.9%

in relation to the 2Q19 recurring amount. This reduction is mainly explained by the restructuring process that has been

carried out at the Company after privatization, with a significant reduction in personnel costs, review of contracts and

outsourcing.

In 2Q20, the allowance for doubtful accounts reached R$ 22 million (3.9% of NOR).

ALAGOAS

In 2Q20, adjusted personnel, material, third-party service and other (Opex) expenses totaled R$ 48 million, a 65.2%

decrease compared to 2Q19, mainly due to the provisioning of R$ 42 million in Voluntary Dismissal Program in 2Q19,

in addition to savings in personnel due to headcount reduction and outsourcing of services.

Adjusted Opex totaled the same R$ 48 million in 2Q20, against R$ 76 million in 2Q19.

The provision for doubtful accounts of Equatorial Alagoas represented R$ 21 million in 2Q20 (3.9%).

21

5.1.3 - Equatorial Consolidated EBITDA Below, we show the calculation for Equatorial’s consolidated EBITDA.

Equatorial's reported EBITDA reached R$ 873 million in 2Q20, 11.1% lower, impacted by the reduction in EBITDA mainly

from disCos Equatorial Maranhão, Equatorial Piauí and Intesa, which reported a lower EBITDA in the amount of R$ 68

million, R$ 63 million and R$ 60 million, respectively. In the disCos, there was an increase in the allowance for doubtful

accounts, a reduction in non-billed income in the period and a reduction in the financial assets update (VNR, in

Portuguese), in the case of Maranhão and Pará. In the case of Intesa, there was a reduction in construction revenue of

approximately R$ 40 millions. Adjusted EBITDA was R$ 857 million, 9.2% lower and is mainly explained by the increase

in PDA at disCos, by the financial asset update (VNR), by non-billed income, as explained below at each DisCo.

Below, we show the comparison of Adjusted Ebitda by VNR and IFRS 15 2019 x 2020:

It can be seen that EBITDA adjusted for these accounting effects grew by 6%, influenced by the operation start of SPEs

1,2 and 8.

Regulatory EBiTDA 2Q19 2Q20 Chg. % 1H19 1H20 Chg.%

Adjusted EBITDA IFRS 943 857 -9.1% 1,547 1,926 24.5%

Financia l Asset Update (VNR) 41 (19) -145.2% 81 2 -97.5%

Transmiss ion IFRS 15 304 244 -19.6% 436 587 34.7%

Adjusted EBITDA by VNR and IFRS 15 598 631 5.6% 1,030 1,337 29.8%

EBITDA Calculation (R$ million) 2Q19 2Q20 Var. 1H19 1H20 Var.

Net Income 409 474 15.8% 667 989 48.2%

Income Tax 209 153 -26.9% 322 453 40.9%

Financia l Results 142 65 -54.4% 231 218 -5.8%

Depreciation and Amortization* 230 218 -5.1% 355 378 6.5%

Equity Equiva lence (8) (36) 378.7% (15) (16) 3.8%

IFRS EBITDA (CVM)** 982 873 -11.1% 1,560 2,023 29.6%

* Cons iders the Amortization of Concess ion Rights

** Calculated in accordance to CVM Instruction 527/12

Equatorial Consolidated EBITDA 2Q19 2Q20 Var. 1H19 1H20 Var.

EBITDA Equatoria l Maranhão 263 195 -26.0% 472 424 -10.1%

EBITDA Equatoria l Pará 185 226 22.3% 321 550 71.2%

EBITDA Equatoria l Piauí 133 70 -47.3% 197 155 -21.4%

EBITDA Equatoria l Alagoas 62 61 -1.6% 62 130 110.4%

EBITDA Intesa 78 18 -77.3% 93 11 -88.1%

EBITDA Transmissão 261 311 19.0% 411 737 79.3%

EBITDA 55 Soluções 10 17 65.8% 20 28 36.0%

Piauí's PPA on Consol idation - (3) N/A - 10 N/A

EBITDA Holding + others (9) (21) 126.9% (16) (22) 38.8%

EBITDA Equatorial 982 873 -11.1% 1,560 2,022 29.6%

Maranhão Adjustments (15) 9 -158.2% (23) 6 -127.1%

Pará Adjustments 82 (7) -109.1% 145 (20) -113.7%

Piauí Adjustments (103) (29) -72.2% (132) (60) -54.5%

Alagoas Adjustments (3) (5) 67.7% (3) (21) 583.5%

Holding'sdjustments - (0) N/A - (18) N/A

Stock Option Adjustments (EQTL) - 13 N/A - 26 N/A

Piauí's PPA Adjustments - 3 N/A - (10) N/A

Equatorial Adjusted EBITDA 943 857 -9.1% 1,547 1,926 24.5%

22

Below, we break down the amounts by disCo, as well as highlighting the amounts considered as non-recurring in the

2Q20 result:

MARANHÃO Adjusted EBITDA in 2Q20 reached R$ 203 million, against R$ 248 million in 2Q19, largely explained by the increase in the PDA (R$ 17 million higher in the period), due to the reduction in the update of financial assets, (R$ 16 million less in the period), increase in Opex and the reduction in unbilled revenues, whose impact was R$ 19 million lower in 2Q20 compared to the previous year. We highlight as main non-recurring effects: i) R$ 9 million in adjustments to the Opex; ii) R$ 1 million impact on gross margin, referring to Parcel A expenses without corresponding CVA;

EBITDA

R$ Million Maranhão Pará Piauí Alagoas Maranhão Pará Piauí Alagoas

(+) Net Income 129 99 20 39 268 208 45 71

(+) Income Tax / Social Contribution 22 22 - (2) 49 109 - (2)

(+) Net Financial Result (4) 27 27 9 13 83 64 27

(+) Depreciation & Amortization 47 78 23 15 94 149 45 35

(=) EBITDA IFRS (CVM)* 195 226 70 61 424 550 155 130

Other Operating Revenues / Expenses 0 (4) 3 0 1 4 2 (0)

(+) Impacts on Gross Margin (1) (15) (32) (5) (4) (36) (65) (20)

(+) PMSO Adjustments 9 11 - - 9 11 3 -

(+) PDA Adjustments - - - - - - - -

Adjusted IFRS EBITDA 203 219 42 56 431 530 95 110 18 32

* Calculated in accordance to CVM Instruction 527/12 333

OK OK OK

EBITDA


(+) Net Income 170 48 53 11 297 99 62 93

(+) Income Tax / Social Contribution 36 16 4 35 65 35 4 178

(+) Net Financial Result 11 48 20 4 19 54 62 44

(+) Depreciation & Amortization 46 72 55 12 91 133 68 25

(=) EBITDA IFRS (CVM)* 263 185 132 62 472 321 197 340

Other Operating Revenues / Expenses 3 2 67 - 5 80 67 -

(+) 2019 Adjustments (18) 80 (169) (3) (29) 65 (199) (405)

Adjusted IFRS EBITDA 248 267 30 59 448 466 65 (65)

* Calculated in accordance to CVM Instruction 527/12

2Q20 1H20

2Q19 1H19

23

PARÁ

In 2Q20, Adjusted EBITDA reached R$ 219 million, a reduction of 18%, mainly due to the higher PDA in the period (R$

50 million higher in the period), due to the reduction in the update of financial assets (R$ 44 million less in the period),

and the reduction in unbilled revenues, whose impact was R$ 9.1 million lower in 2Q20 compared to the previous year.

As non-recurring impacts in this quarter, we highlight:

i) R$ 15 million impact on gross margin, referring to Parcel A expenses without corresponding CVA;

i) R$ 11 million in adjustments to the Opex;

PIAUÍ

In 2Q20, Adjusted EBITDA reached R$ 42 million, against R$ 30 million in 2Q19, representing an increase of 40%,

positively influenced by the reduction in Opex.

As non-recurring impacts in this quarter, we highlight:

i) In 2Q20, Equatorial Piauí's gross margin is positively impacted by R$ 32 million due to the effect of the injunction

obtained by the disCo for the non-application of the annual tariff adjustment (RTA) calculated by ANEEL in December

2019 (see Notice to the Market December 4, 2019 for more details).

ii) R$ 3 million in other operating revenues.

ALAGOAS

In 2Q20, Adjusted EBITDA considering non-recurring effects reached R$ 56 million, against R$ 59 million in 2Q19, stable

in relation to the previous period.

As a non-recurring impact in this quarter, we highlight:

i) (-)R$ 5 million impact on gross margin, referring to the adjustment in the calculation of DIC/FIC penalties;

ii) (+)R$ 5.2 million related to the complement of the forecast of the tariff discount revenue in the review (RTE);

iii) (+)R$ 5.1 million in recovery of tax credits.

24

5.1.4 – Consolidated Financial Results

On a consolidated basis, Equatorial Energia's financial result reached a negative R$ 67 million against a negative R$

142 million in 2Q19. The main reason for the drop in net financial expenses is the reduction in the CDI, SELIC and IPCA

in the period, which are responsible for 79.4% of the Group's debts (see item 7).

Individually, we would like to highlight:

FINANCIAL RESULT s s

R$ Million Maranhão Pará Piauí Alagoas Holding EQTT Intesa Maranhão Pará Piauí Alagoas Holding EQTT Intesa

(+) Financial Income 10 14 4 4 5 0 2 23 29 10 9 17 0 12

(+) Fines and Interest on Overdue Bills 19 27 6 16 - - - 43 52 45 36 - - -

(+) Swap Operations - 65 22 - - - - - 337 110 - - - -

(+) Foreign Exchange on Debt - (68) (22) - - - - - (340) (110) - - - -

(+) Interest on Debt (22) (34) (44) (43) (10) 3 (4) (70) (98) (100) (95) (32) 4 (29)

(+) Present Value Adjustment on Debt 0 2 2 16 - - - 1 4 5 33 - - -

(+) Interest on Debt and Foreign Exch.- Jud Recovery - (18) - - - - - - (34) - - - - -

(+) Present Value Adjustment on Debt - Jud Recovery - (5) - - - - - - (10) - - - - -

(+) Present Value Adjustment (0) (0) (4) (0) 0 - - (0) (0) (8) (0) 0 - -

(+) Contingencies 1 3 (5) 1 - - - (1) 3 (9) - - - -

(+) Other Revenues 1 1 16 3 0 1 0 3 4 3 4 (0) 1 0

(+) Other Expenses (5) (13) (4) (5) (1) (4) (0) (13) (30) (9) (12) (6) (11) (3)

(=) Net Financial Result 4 (27) (27) (9) (5) 0 (2) (13) (83) (64) (27) (21) (6) (20)

Interest Discount and Monetary Adjustment in Installments 14

(=) Ajusted Net Financial Result 4 (27) (27) (9) (5) 0 (2) (13) (83) (51) (27) (21) (6) (20)

FINANCIAL RESULT

R$ Million Maranhão Pará Piauí Alagoas Holding EQTT Intesa Maranhão Pará Piauí Alagoas Holding EQTT Intesa

(+) Financial Income 21 18 - 5 5 0 3 41 33 8 6 15 0 6

(+) Fines and Interest on Overdue Bills 24 35 31 15 - 1 48 67 51 24 - - 1

(+) Swap Operations - (13) (2) - - - - (10) (2) - - - -

(+) Foreign Exchange on Debt - 29 0 (0) - (1) - (0) (0) (0) - - (3)

(+) Interest on Debt (53) (76) (53) (34) (39) 2 (7) (102) (143) (106) (68) (77) (0) (10)

(+) Present Value Adjustment on Debt 3 3 8 11 - - 7 5 16 29 - - -

(+) Interest on Debt and Foreign Exch.- Jud Recovery - (9) - - - - - (20) - - - - -

(+) Present Value Adjustment on Debt - Jud Recovery - (5) - - - - - (10) - - - - -

(+) Present Value Adjustment (0) (0) (6) 0 0 - (0) (0) (11) 0 0 - -

(+) Contingencies (1) (1) 2 - - - (2) (2) 4 - - - -

(+) Other Revenues 5 (1) 6 - 0 0 - 6 95 7 - 1 0 -

(+) Other Expenses (9) (28) (6) (1) (1) (22) (2) (16) (66) (30) (35) (2) (23) (2)

(=) Net Financial Result (11) (48) (20) (4) (34) (20) (6) (19) (54) (62) (44) (63) (23) (8)

ICMS Fine 21

Update CCC Subrogation of Previous Years (95)

Contingency reversal (10) (10)

(=) Ajusted Net Financial Result (21) (48) (20) (4) (34) (20) (6) (28) (129) (62) (44) (63) (23) (8)

2Q20

2Q19 1H19

1H20

In R$ million 2Q19 2Q20 Var. 1H19 1H20 Var.

(+) Financial Income 53 40 -24% 107 100 -6%

(+) Fines and Interest on Overdue Bills 107 68 -37% 181 176 -3%

(+) Swap Operations (15) 87 -681% (12) 446 -3711%

(+) Foreing Exchange on Debt 27 (90) 434% (3) (450) -14712%

(+) Charges and Monetary Variation on Debt (242) (153) 37% (460) (420) 9%

(+) Foreing Exchange on STN Collateral 1 - 100% - - N/A

(+) Interest on Regulatory Charges 24 20 -15% 39 43 9%

(+) Interest on Debt - Judicial Recovery (9) (18) -99% (20) (34) -69%

(+) Present Value Adjustment - Judicial Recovery (5) (5) 3% (10) (10) 1%

(+) Present Value Adjustment (6) (4) 31% (11) (8) 30%

(+) Contingencies 0 (0) 179% (0) (7) -2580%

(+) Other Financial Revenues 10 21 119% 108 14 -87%

(+) Other Financial Expenses (87) (32) 63% (151) (84) 44%

NET FINANCIAL RESULTS (143) (67) -53% (231) (234) 1%

(+) Non-Recurring Effects (10) - -100% (84) 14 -116%

NET FINANCIAL RESULTS (153) (67) -56% (316) (220) -30%

25

MARANHÃO

The positive result of R$ 4 million in the financial result in 2Q20 when compared to 2Q19 is largely explained by a

reduction in debt charges due to the drop in the CDI and IPCA, which represent 78.2% of Maranhão's debts and

reduction in expenses due to the payment of IOF tax linked to a BNDES financing.

It is worth mentioning that, due to the pandemic, the Group adopted flexible collection practices, carrying out interest-

free and no fine negotiations with customers. Thus, in 2Q20, the volume of fines and interest decreased in relation to

2Q19.

PARÁ In the quarter, the recurring net financial result was a negative R$ 27 million. The improvement in results compared

to 2Q19 is due to the significant reduction in the indices to which the company's debt is linked. The CDI increased from

1.54% in 2Q19 to 0.73% in 2Q20 and, in turn, the IPCA increased from 1.46% in 2Q19 to -0.60% in 2Q20. In addition,

financial expenses in 2Q20 decreased due to a lower amount of IOF on BNDES loan releases, compared to 2Q19.

It is worth mentioning that due to the current pandemic, the Group has adopted flexible collection practices, making

negotiations without interest and fines with customers. Thus, in 2Q20, the volume of fines and interested was lower

than in the previous quarter.

PIAUÍ In 2Q20, the net financial result was a negative R$ 27 million. The worsening of the result is mainly due to the reduction

of R$ 25 million in late payment due to the flexibility in charging interest and fine to customers who made

renegotiations. On the positive side, the reduction in the CDI in the period helped to reduce the charges on the

Company's debt.

ALAGOAS

In 2Q20, the net financial result was negative by R$ 9 million, against R$ 4 million also negative in 2Q19. Despite the

reduction in 2Q20 of the main indices to which the debt is linked, there was an increase in the debt base by R$ 628

million.

Equatorial Holding

In the Holding, it presented the best evolution of the financial result among the companies, as a result of the reduction

of debt charges due to both the reduction of the debt balance and the reduction of the CDI, which represented 89.6%

of the Holding's debt index in 2Q20.

26

5.1.5 - Equatorial Consolidated Net Income

On a consolidated basis, Equatorial's net income reached R$ 406 million in the quarter. However, if we adjust for the

non-recurring effects of the quarter, we reached R$ 387 million, an increase of 22.5%, strongly influenced by the

improvement in the financial result.

MARANHÃO

In Equatorial Maranhão, adjusted net income reached R$ 180 million in the quarter. After the adjustments mentioned

in the EBITDA, there were no other relevant non-recurring material bookings that affect net income in this quarter.

Equatorial Consolidated Net Income 2Q19 2Q20 Chg. 1H19 1H20 Chg.

Maranhão Net Income 111 76 -31.6% 193 157 -18.7%

Pará Net Income 47 86 85.2% 96 181 88.8%

Piauí Net Income 50 19 -62.3% 58 43 -25.9%

Alagoas Net Income 10 38 275.3% 10 69 586.7%

INTESA Net Income 59 24 -59.1% 61 6 -91.0%

Transmissão Net Income 137 198 44.8% 232 446 92.0%

55 Soluções Net Income 7 14 87.2% 15 20 32.9%

PPA Equatoria l Piauí Consol idation - (2) N/A - 6 N/A

PPA Equatoria l Alagoas Consol idation - 1 N/A - 2 N/A

Net Income Holding + Others (78) (47) -39.8% (111) (84) -24.0%

Equatorial Net Income 342 406 18.6% 555 846 52.4%

Maranhão Adjustments (19) 6 -130.0% (25) 3 -112.8%

Pará Adjustments 66 (3) -104.9% 6 (22) -475.5%

Piauí Adjustments (70) (30) -56.8% (98) (47) -51.9%

Alagoas Adjustments (3) (5) 61.9% (3) (22) 632.7%

Holding Adjustments - (0) N/A - (13) N/A

Stock Option Adjustments (EQTL) - 13 N/A - 26 N/A

PPA Equatoria l Piauí Consol idation - 2 N/A - (6) N/A

PPA Equatoria l Alagoas Consol idation - (1) N/A - (2) N/A

Equatorial Adjusted Net Income 316 387 22.5% 434 762 75.5%

NET INCOME


(+) Net Income 170 99 20 39 268 208 45 71

(+) EBITDA Adjustments (Net of Taxes) 8 (4) (32) (5) 5 (24) (62) (20)

(+) IR and CSLL Effect 1 0 - - 1 (1) (2) (2)

(+) Adjustments of Financia l Result - - - - - - 14 -

(=) Adjusted Net Income 180 95 (12) 34 274 183 (4) 48

OK OK OK

NET INCOME


(+) Net Income 170 48 57 11 297 99 66 93

(+) EBITDA Adjustments (Net of Taxes) (18) 80 (103) (3) (28) 65 (132) (406)

(+) IR and CSLL Effect (1) (12) (10) 0 16 (10)

(+) Depreciation 39 39

(+) Adjustments of Financia l Result (10) (10) (75)

(=) Adjusted Net Income 142 116 (17) 8 259 105 (37) (312)

2Q20 1H20

2Q19 1H19

27

PARÁ

In Pará, adjusted net income reached R$ 95 million in 2Q20. After the adjustments mentioned in the EBITDA, there

were no other relevant non-recurring entries that affect net income in this quarter.

PIAUÍ

In Piauí, the adjusted net loss reached R$ 12 million in the quarter. After the adjustments mentioned in the EBITDA,

there were no other relevant non-recurring entries that affect net income in this quarter.

ALAGOAS

In Alagoas, adjusted net income reached R$ 34 million in 2Q20. After the adjustments mentioned in the EBITDA, there

were no other relevant non-recurring entries that affect net income in this quarter.

5.2 Economic and Financial Operations – Transmission

5.2.1 Equatorial Transmissão - SPVs 01 to 08

In 2Q20, net revenue reached R$ 56 million and operating expenses totaled R$ 2 million, due to the full operational start of SPVs 1 and 2 and the partial entry of SPV 8. Regulatory EBITDA reached R$ 54 million, with a 97% margin.

EQTT - Main Regulatory Indicators (R$ Millin) 2Q19 2Q20 Var.

Net Revenues - 56 0.0%

Operating Costs - (2) 0.0%

Infrastructure Costs - - 0.0%

EBITDA (CVM 527) - 54 0.0%

Depreciation/Amortization (64) (0) -100%

EBITDA Margin 0% 97% 0.0%

EBIT (0) 12 -19424.2%

Financial Results (2) 42 -1995.8%

Taxes (3) 1 -120.1%

Net Income (5) 54 -1239.6%

Indebtedness and Cash 2Q19 2Q20 Var.

Net Debt 1,354 3,753 177.2%

Debt Volume 2,504 4,247 69.6%

Cash and Equivalents 1,150 494 -57.0%

* Subtracted capex (infrastructure cost) from net revenue

28

In the table below, we present the income statement for the transmission segment, from corporate to regulatory, of SPVs consolidated by Equatorial Transmissão.

We took the opportunity to republish the regulatory result for 1Q20, due to the revision of the numbers that had been released in the last release.

5.2.2 Intesa

Intesa's net revenue was R$ 37.1 million in 2Q20, 2.8% lower compared to the same period of the previous year,

Income Statemen (R$ '000)2Q19

RegulatoryAdjustments 2Q19 IFRS

1Q20

Regulatory

2Q20


1H19

RegulatoryAdjustments 1H19 IFRS

1H20


Operating Revenues - (1,079,922) 1,163,460 43,462 61,897 529,807 591,704 - 1,839,087 1,839,087 105,359 1,476,561 1,581,920

Energy Transmission - (1,754,768) 1,754,768 43,027 61,897 (61,897) - - 1,754,768 1,754,768 104,924 (104,924) -

Financial Asset Update - 1,032 - - - - 1,032 1,032 - - -

Active Contract Update - 82,506 - - - - 82,506 82,506 - - -

Maintenance and Operation Revenues - (781) 781 - - 2,003 2,003 - 781 781 - 2,790 2,790

Construction Revenues - 643,077 (643,077) - - 352,962 352,962 - - - - 1,101,644 1,101,644

Financial Revenues - IRR Update - - - - - 2,260 2,260 - - - - 3,249 3,249

Active contract update in service - - - - 83,309 83,309 - - - - 162,679 162,679

Contract Asset Revenue - - - - - 191,436 191,436 - - - - 319,914 319,914

Contract assets - Realization gain - - - - (40,547) (40,547) - - - - (8,791) (8,791)

Other Revenues - 32,550 (32,550) 435 - 281 281 - - 0 435 (0) 435

Deductions from Operating Revenues - 107,873 (107,873) (2,730) (5,822) (52,563) (58,385) - (170,057) (170,057) (8,552) (143,846) (152,398)

Net Operating Revenues - 1,055,587 1,055,587 40,732 56,074 477,245 533,319 - 1,669,030 1,669,030 96,807 1,332,715 1,429,522

Operating Expenses - (794,738) (794,738) (1,670) (5,003) (217,765) (222,768) - (1,258,200) (1,258,200) (6,673) (685,758) (692,431)

Personnel - - - (764) (2,726) - (2,726) - - (3,490) - (3,490)

Material - - - (119) (72) - (72) - (2) (2) (191) - (191)

Third Party Services - - - (871) (1,661) - (1,661) - (15) (15) (2,532) - (2,532)

Contract assets - Loss of realization - - - - - - - - - - - - -

Provisions - (794,738) (794,738) - - (217,765) (217,765) - (1,258,126) (1,258,126) - (685,758) (685,758)

Other - - - 84 (544) - (544) - (57) (57) (460) - (460)

EBITDA - 260,849 260,849 39,062 51,071 259,480 310,551 - 410,830 410,830 90,134 646,957 737,091

Depreciation and Amortization (64) 1 (65) (142) (182) 153 (29) (128) (2) (130) (324) 211 (113)

Operating Income (64) (260,848) 260,784 38,920 50,890 259,632 310,522 (128) 410,828 - 89,810 647,168 736,978

Equity Equivalence - - - - - - -

Net Financial Results (2,195) 17,980 (20,175) (5,983) 46 - 46 (5,264) (17,957) (23,221) (5,937) 17 (5,920)

Financial Revenues - - - (9) 766 - 766 - 33 33 757 26 783

Financial Expenses (2,195) 17,980 (20,175) (5,975) (720) - (720) (5,264) (17,990) (23,254) (6,695) (8) (6,703)

Income Before Taxes (2,259) (242,868) 240,609 32,937 50,936 259,632 310,568 (5,392) 392,871 387,479 83,872 647,185 731,058

Social Contribution (2,522) (5,043) 2,521 - - - - - (4) (4) - - -

Income Tax - - - (506) 506 (506) - - (7) (7) - - -

Fiscal Incentives - - - - - - - - - - - - -

Deferred taxes - 106,502 (106,502) - - (112,766) (112,766) (155,103) 1 (155,102) - (284,742) (284,742)

Tax breaks - - - - - - - - - - - - -

Net Income (4,781) (141,409) 136,628 32,431 51,442 146,360 197,802 (5,392) 392,860 232,366 83,872 362,443 446,316

Intesa - Main Regulatory Indicators (R$ Millin) 1T20 2Q19 2Q20 Var.

Net Revenues 38 37 -2.8%

Operating Costs (3) (4) 22.2%

Infrastructure Costs - - N/A

EBITDA (CVM 527) 35 33 -5.1%

Depreciation/Amortization (5) (3) -35.4%

EBITDA Margin 91% 89% -2.4%

Margem EBITDA ajustada* 91% 89% -2.4%

EBIT 30 30 0.2%

Financial Results (6) (2) -61.8%

Taxes (1) (1) 38.1%

Net Income 23 26 14.6%

Indebtedness and Cash 1T20 2T19 2T20 Var.

Net Debt 177 293 65.7%

Debt Volume 505 508 0.6%

Cash and Equivalents 328 215 -34.5%

* Subtracted capex (infrastructure cost) from net revenue

29

impacted by the anticipation of the return of overpayment of revenue by R$ 5.3 million, as per dispatch No. 1,106/ 2020 from ANEEL and a negative effect on the variable portion of R$ 1.1 million. EBITDA reached R$ 33.1 million in 2Q20, as an EBITDA margin of 89% against R$ 34.9 million in 2Q19 and a margin of 91%, explained by the same factors pointed out for the reduction in net revenue. Net income was R$ 26.4 million, 14.6% higher, due to the reduction in the financial result by the drop in the CDI on the cost of debt in the period.

6. Regulatory Highlights

6.1 Tariffs – Adjustment / Review - DisCos

In the case of Piauí, it is important to note that due to a judicial injunction, the 2019 annual adjustment is suspended

until ANEEL judges the administrative appeal against the decision not to open the Extraordinary Tariff Review process.

Income Statemen (R$ '000)2Q19


2Q20


1H19


1H20


Operating Revenues 44,208 50,487 94,696 43,243 (5,051) 38,192 87,443 62,594 150,038 91,365 (13,746) 77,619

Energy Transmission 43,973 (42,272) 1,701 39,786 (39,786) 87,007 (84,029) 2,978 87,659 (87,659)

Maintenance and Operation Revenues 7,223 7,223 4,386 4,386 15,748 15,748 8,865 8,865

Construction Revenues 55,559 55,559 16,660 16,660 77,321 77,321 87,575 87,575

Financial Revenues - IRR Update 26,903 26,903 - 49,322 49,322 -

Contract Asset Revenue 2,455 2,455 35,511 35,511 2,993 2,993 70,264 70,264

Contract assets - Realization gain - (20,300) (20,300) - (93,248) (93,248)

Other Revenues 235 620 855 3,457 (1,522) 1,935 436 1,239 1,675 3706 457 4163

Deductions from Operating Revenues (6,075) (2,711) (8,786) (6,168) (2,639) (8,807) (11,728) (7,152) (18,880) (12,541) (5,357) (17,898)

Net Operating Revenues 38,133 47,776 85,910 37,075 (7,690) 29,385 75,715 55,442 131,158 78,824 (19,103) 59,721

Operating Expenses (3,269) (5,015) (8,284) (3,996) (7,715) (11,711) (7,793) (30,068) (37,861) (8,143) (40,554) (48,697)

Personnel (871) - (871) (844) - (844) (2,318) - (2,318) (1,668) - (1,668)

Material 105 - 105 (155) - (155) (29) - (29) (172) - (172)

Third Party Services (2,552) - (2,552) (3,396) - (3,396) (5,496) - (5,496) (7,026) - (7,026)

Provisions (5,015) (5,015) (7,715) (7,715) (30,067) (30,067) - (40,554) (40,554)

Other 49 - 49 399 - 399 50 (1) 49 723 - 723

EBITDA 34,864 42,761 77,625 33,079 (15,405) 17,674 67,922 25,374 93,297 70,681 (59,657) 11,024

Other Operating Revenues (Expenses) - - - - - - - - - - - -

Depreciation and Amortization (5,234) 5,219 (15) (3,381) 5,200 1,819 (10,381) 10,351 (30) (8,596) 10,399 1,803

Operating Income 29,630 47,980 77,610 29,698 (10,205) 19,493 57,541 35,725 93,267 62,085 (49,258) 12,827

Net Financial Results (5,820) - (5,819) (2,225) - (2,225) (8,151) - (8,151) (8,261) - (8,261)

Financial Revenues 4,107 - 4,107 1,991 - 1,991 6,604 0 6,604 4,144 - 4,144

Financial Expenses (9,927) - (9,927) (4,216) - (4,216) (14,755) - (14,755) (12,405) - (12,405)

Income Before Taxes 23,810 47,981 71,791 27,473 (10,205) 17,268 49,391 35,725 85,117 53,824 (49,258) 4,566

Social Contribution (2,828) (12,369) (15,197) (3,548) (2,325) (5,873) (5,905) (21,996) (27,901) (3,794) 2,220 (1,574)

Income Tax 2,078 - 2,078 2,512 - 2,512 4,067 - 4,067 2,512 - 2,512

Net Income 23,060 35,612 58,672 26,437 (12,530) 13,907 47,553 13,729 61,283 52,542 (47,038) 5,504

Company Star Date Process

Equatorial Maranhão 8/20/2019 Annual Tariff Adjustment

Equatorial Pará 8/7/2020 Annual Tariff Adjustment

Equatorial Piauí 12/2/2018 Annual Tariff Adjustment

Equatorial Alagoas 5/3/2019 Extraordinary Tariff Review

Average Effect on Consumer (%)

-3.82%

2.68%

12.64%

-2.72%

30

6.2 Tariffs – Adjustment / Review – Transmission

In Alagoas, the start of the new tariff was postponed to 7/1/20, but the financial and economic impacts of this

postponement are fully neutralized.

*The date of the 1st review of Intesa's reinforcements was originally 7/1/2019, but was postponed by ANEEL and had

its retroactive effects valid from 7/1/2020.

It is important to note that the revenue from Intesa's original project will be reduced by 50% in 2024. 6.3 Regulatory Asset Base

¹ Piauí and Alagoas have the right of an Extraordinary Tariff Review each one on the first 3 years of the concession.Those Extraordinary Tariff Reviews won’t change the regulatory OPEX and non-technical regulatory losses.

6.4 Parcel B

Concessionaire Contract Contract Signature 1º Revision 2º Revision 3º Revision 4º Revision

SPE 1 07/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 2 08/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 3 10/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 4 12/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 5 13/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 5 14/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 7 20/2017 2/10/2017 7/1/2022 7/1/2027 7/1/2032 7/1/2037

SPE 8 48/2017 7/21/2017 7/1/2023 7/1/2028 7/1/2033 7/1/2038

Intesa (reinforcements) 02/2006 4/27/2006 7/1/2020 * 7/1/2024 7/1/2029 7/1/2034

3rd Cicle 4th Cicle 5th Cicle 3rd Cicle 4th Cicle 5th Cicle

Equatorial Maranhão 2,069 3,309 Aug-13 Aug-17 Aug-21

Equatorial Pará 1,472 3,090 5,047 Aug-11 Aug-15 Aug-19

Equatorial Piauí 318 - Aug-13 - Dec-23

Equatorial Alagoas 444 - 1,354 Aug-13 May-24

DisCoRegulatory Asset Base (R$ Million) Tariff Review Date

VPB1 A-1 VPB1 A0 Chg. % Start Date

Maranhão 1,406 1,473 4.8% Aug-19

Pará 1,883 2,059 9.3% Aug-20

Piauí 516 498 -3.5% Dec-18

Alagoas 474 666 40.5% May-19

TOTAL 4,279 4,696 9.7%

CompanyParcel B (R$ Million)

31

6.5 Regulatory Assets and Liabilities

REGULATORY ASSETS Maranhão Pará Piauí Alagoas

Accrual 117,192 137,270 280,031 680,117

CDE 4,402 75

Proinfa - -

System Charges 5,233 809 575

Basic Grid 10033 18,843 9,570 5,553

Energy Purchase 97524 118,427 79,162 13,994

Othes 140,705 645,209

Neutrality - 6,171

Over-contracting 49,785 8,540

Amortization 36,319 28,407 59,566 56,027

CDE - 9,299 8,377

Proinfa 718 285 1,897 -

System Charges - 131 160

RTE Energy - -

Basic Grid 400 1,009 3,948 -

Energy Purchase 35201 27,113 44,291 47,491

Parcel A Neutrality 245 2,221 - -

Excess Energy Purchase - 26,010 -

Other Regulatory Assets 11,469 2,646 1,126 174,883

Others 1441 2,646 1,126 174,883

CCEAR guarantee 1,458 - -

Over-contracting 8570 -

Total 165,225 170,544 366,733 911,027

REGULATORY LIABILITIES Maranhão Pará Piauí Alagoas

Accrual (78,888) (29,789) (86,320) (33,926)

Energy Purchase -5112 - -

Proinfa (4,445) (7,637) (3,136) (574)

System Charges -66161 (13,236) (61,038) (25,111)

CDE (985) (3,260) (14,928) (3,703)

Basic Grid (2,185) (1,284) (1,875)

Neutrality Parcel A (5,656) (2,698) -

Othets - (1,989)

CEPISA continuity limit violation (2)

Over-contracting (3,234) (674)

Amortization (9,435) (10,507) (8,227) (34,960)

Basic Grid (80) (54) (154)

Energy Purchase (321) (2,477)

CDE -325 (1,498) (397) (11,842)

System Charges -9110 (8,929) (7,455) (20,487)

Parcel A Neutrality -6335 (706) -

Other Regulatory Assets (104,179) (8,425) (51,717) (50,985)

Others -102707 (8,425) (51,697) (50,934)

CEPISA continuity limit violation (20) (51)

Financial Exposure - -

Excess Energy Purchase (1,472) (30,021) - (33,991)

PIS/COFINS Compensation

Total (198,837) (78,742) (146,970) (153,863)

Net Regulatory Assets Maranhão Pará Piauí Alagoas

Regulatory Assets 165,225 170,544 366,733 911,027

Regulatory Liabilities (270,714) (318,386) (155,069) (163,332)

Net Regulatory Assets (for Net Debt) (105,489) (147,842) 211,664 747,695

32

7. Indebtedness

7.1 – Consolidated Debt

On June 30, 2020, the consolidated gross debt, considering charges, financial creditors of the judicial recovery (net of

adjustment to present value) and debentures, reached R$ 18,372 million, an increase of 1.8% in relation to the previous

quarter.

Indebtedness (100% consolidated) Index Spread 2020 2021 2022 2023 2024 2025 a 2034 2035 to 2044 2044 to 2049 Total

Domestic Currency

% of CDI 111,8% to 115,7% 5 616 542 354 - - - - 1,516

CDI + + 1,0% to + 1,3% 7 - - 1,000 - - - - 1,007

Fixed Rate (R$) 1% to 10% p.y 18 97 24 19 17 706 - - 882

IPCA + 4,8% to + 8,0% 14 360 166 279 166 452 - - 1,437

IGP-M + 1,0% 6 - - - - 273 - - 279

Adjust to present value (2) (32) (21) (20) (19) (168) - - 262-

49 1,040 711 1,632 165 1,263 - - 4,859

Domestic Currency

% of CDI 106% to 107% 5 580 500 - - - - - 1,085

IPCA + 4,9% to + 5,5% 12 217 44 172 44 239 - - 729

TJLP + 0% to + 3,1% 53 43 43 43 11 - - - 194

SELIC + 2,8% 21 42 42 42 11 - - - 159

Pre-fixed 2,5% to 8,7% p.y. 16 31 23 5 5 2 - - 83

IGP-M + 4,0% 11 23 23 21 2 - - - 81

Adjust to present value 0% (2) (3) (3) (2) (0) - - - 10-

118 934 673 283 72 241 - - 2,320

Domestic Currency

% of CDI 109,8% to 119,5% 55 488 511 80 80 - - - 1,214

CDI+ +1% +1,1% 2 3 310 440 - - - - 755

IPCA +0,5% to +3,9% 10 26 31 30 33 141 54 - 325

SELIC + 0,5% 34 62 46 10 - - - - 152

Pre-fixed +5,0% - - - - 44 433 440 167 1,084

Adjust to present value 0% (0) (34) (23) (23) (22) (224) (224) (86) 636-

101 544 875 537 134 349 270 81 2,892

Domestic Currency 2,464

% of CDI 100% to 124,85% 29 339 346 317 374 46 - - 1,451

CDI+ +1,0% - 5 - 250 - - - - 255

IPCA +3,9% - 2 4 4 4 42 20 - 77

SELIC + 0,5% 20 27 11 5 0 - - - 62

Pre-fixed 5,0% p.y. - - - - 29 496 504 213 1,242

Adjust to present value 0% - (33) (22) (22) (22) (217) (217) (92) 624-

49 341 339 554 386 367 308 120 2,464

Domestic Currency

% of CDI 113% 151 - - - - - - - 151

CDI+ +0,5% to +1,2% 612 - - - - - - - 612

IPCA +1,6% to 5,3% 8 44 62 134 149 1,867 1,268 - 3,532

Adjust to present value 0% (23) (2) (2) (2) (2) (15) (3) - 47-

747 42 60 132 147 1,853 1,265 - 4,247

Domestic Currency

IPCA + 5,4% 4 - - 35 35 35 - - 108

% of CDI 109% 2 - - - 250 - - - 252

CDI+ + 1,1% 2 - - - - 150 - - 152

Adjust to present value 0% (0) (1) (1) (1) (1) (1) - - 4-

7 1- 1- 34 284 184 - - 508

Domestic Currency

CDI+ +1,3% 5 - - - 448 - - - 453

% of CDI 107,5% 517 - - - - - - - 517

IPCA + 5,8% 4 - - 57 57 - - - 118

Adjust to present value 0% (1) (1) (1) (1) (1) - - - (5)

525 (1) (1) 56 504 - - - 1,082

EQUATORIAL CONSOLIDATED 1,596 2,900 2,656 3,227 1,693 4,256 1,842 202 18,372

Equa

toria

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33

Geramar's gross debt is not consolidated in Equatorial. The balance of Geramar's gross debt in 2Q20, adjusted by

Equatorial's 25% stake, was R$ 61 million.

Equatorial's consolidated net debt in 2Q20 totaled R$ 10.9 billion, implying a net debt/EBITDA ratio of 2.3x.

As of June 30, 2020, net debt adjusted by Equatorial's holdings in its subsidiaries totaled R$ 10.3 billion, resulting in a

net debt / proportional EBITDA ratio of 2.4x.

Index Spread 2020 2021 2022 2023 2024 2025 2026 a 2033 2034 Total

TJLP + 1,0% p.y. 6 10 10 10 9 - - - 44

Fixed Rate (R$) 8,5% p.y. - 2 2 2 2 2 2 - 13

+ 3,3% p.y. - 1 3 1 - - - - 5

6 13 14 13 11 2 2 - 61

Ger

amar

Equatorial

Distribuição

Gross Debt 2,320,401 4,858,770 2,891,825 2,464,041 1,082,375 4,246,769 507,513 - 18,371,694

Cash Pos i tion 1,350,874 1,921,896 574,584 569,372 828,406 529,511 215,030 107,763 19,447 6,116,883

Net Regulatory Assets (105,490) (147,841) 211,664 757,164 - - - - - 715,497

CCC Subrogation - 85,120 - - - - - - - 85,120

Banks Judicia l Depos its - 6,952 - - - - - - - 6,952

Swap - 372,021 120,436 - - - - 21,571 - 514,028

Net Debt 1,075,017 2,620,622 1,985,141 1,137,505 253,969 3,717,258 292,483 (129,334) (19,447) 10,933,214

EQTL's s take 65.1% 96.5% 94.5% 96.4% 100.0% 100.0% 100.0% 100.0% 100.0%

Net Debt (Proportional) 699,836 2,528,900 1,875,958 1,096,214 253,969 3,717,258 292,483 (129,334) (19,447) 10,315,837

55 Soluções ConsolidatedAlagoas Equatorial EnergiaMaranhão Pará PiauíEquatorial

TransmissãoIntesa

34

7.2 – Funding Throughout 2Q20 and until the preparation of this report, the group carried out the following debt/financing releases.

Company Debt Start Date Amount ('000) Maturity Interest Amortization

EQTL PARÁ BNDES 22/04/2020 220,000 9 years Montly Montly

SPV 7 SUDAM/FDA/BB 28/05/2020 59,931 20 years Six-Montly Six-Montly

SPV 7 EQTL Energia 28/05/2020 10,500 2 years Bullet Bullet

SPV 6 BNDES 28/05/2020 154,200 24 years Montly Montly

SPV 2 Banco do Nordeste 04/06/2020 31,101 20 years Montly Montly


SPV 8 EQTL Energia 01/07/2020 150,000 2 years Bullet Bullet


SPV 4 BNDES 21/07/2020 26,700 24 years Montly Montly

716,961

35

8. Investments

The information related to Investments made in the period considers 100% of Maranhão, Pará, Piauí, Alagoas, Intesa,

Equatorial Transmissão and 25% of Geramar.

Since the beginning of Equatorial Transmissão's projects in 2017, in an accumulated manner, approximately R$ 4.5 billion have been invested. The reduction in investments compared to the same quarter of the previous year shows that we are already in the final stage of implementing transmission projects and investments in disCos have slowed due to the Covid-19 pandemic.

Investments (R$ MM) 2Q19 2Q20 Var.% 1H19 1H20 Var.%

Maranhão

Electrical Assets 73 89 22.1% 128 185 44.1%

Special Obligations 15 24 61.4% 36 44 22.3%

Non-Electrical Assets 13 17 29.9% 17 36 112.6%

Total 101 130 29.0% 181 265 46.2%

Pará

Electrical Assets 99 93 -6.2% 235 177 -24.8%

Special Obligations 50 34 -31.7% 51 95 85.7%

Non-Electrical Assets 11 10 -13.3% 21 26 22.6%

Total 161 137 -15.2% 308 297 -3.5%

Piauí

Electrical Assets 262 64 -75.5% 270 105 -61.1%

Special Obligations 21 24 14.7% 32 45 40.5%

Non-Electrical Assets 12 7 -42.0% 25 20 -21.9%

294 95 -67.6% 327 169 -48.2%

Alagoas

Electrical Assets 16 42 -159.9% 15 72 380.0%

Special Obligations 0 - 100.0% 0 - 100.0%

Non-Electrical Assets 11 3 71.6% 11 7 -35.7%

27 45 -63.2% 26 79 199.6%

Total Equatorial Distribuição 583 407 -30.3% 842 810 -3.8%

Geramar

Generation 2 3 65.2% 3 3 14.9%

Equatorial Transmissão

Greenfield 687 179 -73.9% 1,262 581 -54.0%

Intesa 5 12 131.7% 30 21 -30.7%

Total Equatorial 1,275 601 -52.9% 1,784 1,167 -34.6%

36

9. Capital Market

1EV = Market Cap + Proportional Net Debt

2ADTV = Average Daily Trading Volume

10. Services Provided by the Independent Auditors

The Company did not hire Ernst & Young Auditores Independentes, its external auditors, for any other services beyond

the independent audit and those services required by ANEEL. The Company’s contracting policy is designed to ensure

the independence of the auditors in line with the prevailing regulations. Essentially, these determine that the auditors

may not audit their own work, exercise any managerial function for their clients or promote their clients’ interests.

The following information was not reviewed by the independent auditors: i) Equatorial Distribuição Maranhão, Pará,

Piauí and Alagoas operating information (including that related to the Light for All Program PLPT); ii) proforma financial

information and its comparison with the corporate results presented in the period; and; iii) Management’s

expectations regarding the future performance of the companies.

Warning

Forward-looking statements are subject to risks and uncertainties. Such statements are based on the beliefs and

assumptions of our management and information to which the Company currently has access. Forward-looking

statements include information about our current intentions, beliefs or expectations, as well as those of the members

of the Board of Directors and Directors of the Company. Disclaimers with respect to forward-looking statements and

information also include information on possible or assumed operating results, as well as statements that are

preceded, followed or that include the words "believe", "may", "will", "continue", “Wait”, “foresee”, “intend”,

“esteem” or similar expressions.

Forward-looking statements and information are not guarantees of performance. They involve risks, uncertainties and

assumptions because they refer to future events, depending, therefore, on circumstances that may or may not occur.

Future results and the creation of value for shareholders may differ significantly from those expressed or suggested by

the statements regarding the future. Many of the factors that will determine these results and values are beyond the

Company's ability to control or forecast.

Accounting criteria adopted:

The information is presented on a consolidated basis and in accordance with the criteria of Brazilian corporate law,

based on revised financial information. The consolidated financial information presented in this report represents

100% of Equatorial Maranhão's results, 100% of Equatorial Pará, 100% of Equatorial Piauí, 100% of Equatorial Alagoas,

100% of Equatorial Transmissão, 100% of Intesa and 100% of 55 Soluções .

The consolidated operating information represents 100% of Equatorial Maranhão's results, 100% of Equatorial Pará,

100% of Equatorial Piauí and Equatorial Alagoas and 100% of 55 Soluções.

Annex 1 – Manager Results - Isolated System - Equatorial Pará (R$ Million)

Market Data jun/19 jun/20 Var. %

Enterprise Value (EV - R$ million)1 27,807 34,793 25.1%

Market Cap (R$ million) 18,520 23,459 26.7%

ADTV90 (R$ million)2 100 169 69.0%

EQTL3 (ON) (R$/share) 18.36 23.22 26.5%

37

Annex 2 – Income Tax and Social Contribution Rate (R$ Million)

ISOLATED SYSTEMS 2Q19 2Q20 Var.% 1H19 1H20 Var.%

REVENUES / REIMBURSEMENTS 112.3 99.1 -11.7% 211 211 -0.2%

N/A

CCC Subvention 83.7 69.6 -16.9% 155 150 -3.4%

ACR Revenue (within the Company's Parcel A) 21.0 22.4 6.7% 41 45 9.6%

(-)C F PIS/COFINS 7.6 7.2 -6.3% 15 16 5.2%

COSTS / EXPENSES (107.7) (98.8) 8.2% (210) (213) -1.5%

Third Party Services (1.2) (2.6) -116.1% (3) (4) -52.7%

Others (0.5) - (1) -

Energy and Potency Purchase - IS (106.0) (96.2) 9.2% (206) (208) -1.0%

SURPLUS (DEFICIT) IN ISOLATED SYSTEMS 5 0 -94.2% 2 (2) 191.9%

COSTS / EXPENSES 72 73 1.4% 142 147 3.3%

Net Income and Social Contribution


EBT (a) 207 121 20 37 318 317 45 69

Net Income Expense (22) (22) - 2 (49) (109) - 2

(+) Deferred Fiscal Asset (8) 15 - (35) (4) 101 - (35)

(=) Calculated Tax (30) (7) - (32) (54) (7) - (33)

(=) Tax - Cash Basis (b) (30) (7) - (32) (54) (7) - (33)

(b/a) Tax Rate 14.6% 6.1% 0.0% 88.8% 17% 2% 0% 47%

Real Income 158 78 (0) 117 336 78 (41) 335

Tax Rate over Real Income 19.0% 9.5% 0.0% 27.8% 16.0% 9.5% 0.0% 9.7%

OK OK OK

Net Income and Social Contribution


EBT (a) 207 65 58 46 362 134 66 271

Net Income Expense (36) (16) (4) (35) (65) (32) (17) (178)

(+) Deferred Fiscal Asset 16 14 - 35 33 29 - 178

(=) Calculated Tax (20) (3) (4) - (33) (3) (17) -

(=) Tax - Cash Basis (b) (20) (3) (4) - (33) (3) (17) -

(b/a) Tax Rate 9.6% 4.1% 7.8% 0.0% 9% 2% 26% 0%

Real Income 204 21 93 (77) 339 51 92 (250)

Tax Rate over Real Income 9.7% 12.6% 4.8% 0.0% 9.6% 6.3% 18.9% 0.0%

2Q20 1H20

1H192Q19

38

Annex 3 – Consolidated Income Statement (R$ Million)

Equatorial Maranhão Income Statement

Income Statement (R$ '000) 2Q19 2Q20 1H19 1H20

Operating Revenues 1,280,973 1,090,881 2,522,665 2,335,957

Electricity Sales 1,135,586 916,742 2,252,071 1,981,240

Electricity Supply 1,857 5,955 6,589 25,692

Construction Revenues 100,988 130,240 180,919 264,775

Other Revenues 42,542 37,944 83,086 64,250

Deductions from Operating Revenues (363,295) (260,844) (734,014) (593,514)

Net Operating Revenues 917,678 830,037 1,788,651 1,742,443

Energy Service Costs (502,705) (467,825) (1,014,823) (1,011,080)

Purchased Energy (348,618) (280,544) (728,029) (624,146)

Transmission and Grid Usage Charges (53,099) (57,041) (105,875) (122,159)

Construction Cost (100,988) (130,240) (180,919) (264,775)

Operating Gross Margin 414,973 362,212 773,828 731,363

Operating Expenses (152,140) (167,481) (302,179) (307,025)

Personnel (31,238) (30,498.00) (61,768) (62,129)

Material (3,983) (2,393.00) (5,999) (4,822)

Third Party Services (75,965) (88,918.00) (154,741) (168,680)

Provisions (25,465) (39,941.00) (58,645) (61,439)

Other (12,421) (5,406.00) (15,876) (8,564)

Other Operating Revenues (Expenses) (3,068) (325.00) (5,150) (1,391)

EBITDA 262,833 194,731 471,649 424,338

Depreciation and Amortization (45,623) (46,604) (90,581) (93,845)

Operating Income 217,210 148,127 381,068 330,493

Net Financial Results (10,624) 3,809 (18,845) (12,584)

Financial Revenues 52,231 30,295 101,145 69,904

Financial Expenses (62,855) (26,486) (119,990) (82,488)

Income Before Taxes 206,586 151,936 362,223 317,909

Social Contribution (17,683) (14,243) (30,476) (30,200)

Income Tax (33,995) (44,898) (57,548) (81,954)

Deferred Taxes (16,374) 7,623 (32,629) 4,348

Fiscal Incentives 31,914 29,060 55,468 58,349

Net Income 170,449 129,478 297,038 268,452

39

EQUATORIAL PARÁ INCOME STATEMENT



Electricity Sales 1,513,493 1,350,840 3,047,876 2,931,678



Other Revenues 111,190 60,832 213,693 163,127

Deductions from Operating Revenues (622,225) (421,013) (1,190,280) (986,931)

Net Operating Revenues 1,174,778 1,164,408 2,456,880 2,448,793

Energy Service Costs (795,352) (682,187) (1,695,388) (1,452,694)

Purchased Energy (542,193) (417,435) (1,157,233) (926,546)

Transmission and Grid Usage Charges (92,378) (99,122) (183,662) (212,069)

Construction Costs (160,781) (165,630) (354,493) (314,080)



Personnel (31,771) (33,812) (65,835) (68,201)

Material (1,758) (1,427) (3,821) (3,631)

Third Party Services (84,170) (87,268) (165,962) (166,505)

Provisions (50,015) (99,783) (65,051) (130,013)

Other (2,838) (8,382) (9,038) (10,817)

Potency and Energy Purchase - Isol. Systems (105,967) - (206,144) -

CCC Subvention 83,679 (28,975) 155,225 (62,933)

Fuel for Energy Generation 132 - 259 -

Other Operating Revenues (Expenses) (1,949) 3,650 (80,056) (4,327)

EBITDA 184,770 226,224 321,070 549,672



Net Financial Results (48,208) (26,809) (53,943) (83,195)


Financial Expenses (85,584) (140,942) (259,776) (517,044)


Social Contribution 366 (7,056) (3,184) (7,056)

Income Tax 1,021 (21,199) (8,583) (21,199)

Deferred Taxes (13,673) (14,533) (28,514) (101,404)

Fiscal Incentives (4,057) 20,826 5,548 20,826

Net Income 48,208 99,184 99,358 208,406

40

EQUATORIAL PIAUÍ INCOME STATEMENT


Operating Revenues 981,813 667,211 1,724,288 1,424,861

Electrici ty Sa les 648,518 543,829 1,300,100 1,166,208

Electrici ty Supply 26,400 10,370 72,081 47,951


Other Revenues 5,999 16,867 11,322 35,874


Net Operating Revenues 738,884 485,743 1,231,305 1,013,192

Energy Service Costs (581,051) (329,778) (947,368) (687,781)


Transmiss ion and Grid Usage Charges (33,350) (3,652) (81,789) (6,585)




Personnel 97,724 (16,215) 55,769 (38,313)

Materia l 1,073 (769) (331) (1,917)


Provis ions (28,532) (24,761) (37,786) (46,460)

Other 3,884 (1,391) 8,865 (3,519)

Other Operating Revenues (Expenses) (67,066) (3,398) (67,066) (1,668)

EBITDA 132,683 70,103 196,997 154,813




Financia l Revenues 50,022 52,584 90,414 175,439

Financia l Expenses (70,337) (80,081) (152,605) (239,877)


Socia l Contribution (29) - (29) -

Income Tax (15,469) - (15,469) -

Fisca l Incentives 14,782 - 14,782 -

Net Income 56,801 19,950 65,606 45,495

41

EQUATORIAL ALAGOAS INCOME STATEMENT


Operating Revenues 464,584 597,654 1,453,949 1,274,683

Electrici ty Sa les 241,757 523,778 913,736 1,134,105

Electrici ty Supply 1,245 3,146 384 5,428


Other Revenues 202,880 26,021 529,316 56,067


Net Operating Revenues 348,044 419,314 1,079,584 878,193

Energy Service Costs (280,268) (288,822) (568,128) (607,935)


Transmiss ion and Grid Usage Charges (24,669) (51,141) (60,529) (108,632)




Personnel (82,388) (11,825) (131,654) (31,432)

Materia l 10 (821) (694) (1,768)


Provis ions 57,828 (21,914) 45,166 (39,804)

Other 44,300 (3,381) (33,930) (5,201)

Other Operating Revenues (Expenses) (6) 22

EBITDA 61,188 61,021 338,177 130,425




Financia l Revenues 31,755 42,850 63,697 89,776

Financia l Expenses (35,892) (51,854) (108,659) (116,701)


Socia l Contribution (10,662) (10,741)

Income Tax (29,016) (29,288)

Deferred Taxes (34,881) 34,839 (177,893) 34,839

Fisca l Incentives 7,184 7,456

Net Income 10,986 38,928 93,110 71,237

42

EQUATORIAL TRANSMISSÃO’S INCOME STATEMENTS - IFRS


Operating Revenues 1,163,460 591,704 1,839,087 1,581,920

Construction Revenues 1,111,691 352,962 1,754,768 1,101,644

Electricity Transmission Operations 2,260 3,249

Other Revenues 781 2,003 781 2,790

Active contract update in service 83,309 162,679

Contract assets - Realization gain (40,547) (8,791)

Contract asset revenue 50,988 191,436 83,538 319,914

Other Revenues 281 435


Net Operating Revenues 1,055,587 533,319 1,669,030 1,429,522

Energy Service Costs (794,738) (217,765) (1,258,126) (685,758)

Construction Costs -794,738 (217,765) -1,258,126 (685,758)


Operating Expenses (2) (5,003) (17) (6,673)

Personnel (2,726) (3,490)

Material -2 (72) -2 (191)

Third Party Services (1,661) (15) (2,532)

Provisions -

Contract assets - Realization loss -

Other (544) (460)

Other Operating Revenues (Expenses) - -

EBITDA 260,847 310,551 410,887 737,091

Depreciation and Amortization -79 (29) -187 (113)

Equity Equivalence - - -

Net Financial Results (20,164) 46 (23,219) (5,920)

Financial Revenues 15 766 33 783

Financial Expenses (20,179) (720) (23,252) (6,703)


Social Contribution 666 - (4)

Income Tax 1,844 - -7

Deferred Taxes -106,502 (112,766) -155,104 (284,742)

Net Income (before Minorities) 136,612 197,802 232,366 446,316

43

EQUATORIAL ENERGIA CONSOLIDATED INCOME STATEMENT



Electricity Sales 3,747,940 3,370,350 6,960,170 7,336,470


Construction Revenues 1,741,776 806,348 2,713,956 2,040,166

Electricity Transmission Operations 1,701 (5,262) 2,978 (2,708)

Operation and Maintenance Revenue 8,003 6,390 16,529 11,656

Other Revenues 310,765 398,654 681,192 786,501

Deductions from Operating Revenues (1,475,428) (1,121,860) (2,750,159) (2,589,284)

Net Operating Revenues 4,375,799 3,482,210 7,735,678 7,688,712

Energy Service Costs (3,018,753) (2,025,621) (5,322,552) (4,594,919)

Purchased Energy (1,644,474) (1,363,416) (3,152,492) (3,035,841)

Construction Costs (1,374,279) (662,205) (2,170,060) (1,559,078)

Operating Gross Margin 1,357,046 1,456,589 2,413,126 3,093,793

Operating Expenses (375,036) (583,318) (852,855) (1,071,257)

Personnel (77,972) (134,279) (213,091) (285,641)

Material (5,917) (6,631) (12,152) (14,950)


Provisions (46,327) (189,231) (104,014) (268,363)

Other 5,063 (52,082) (31,231) (99,778)

Other Operating Revenues (Expenses) (72,077) 30 (152,268) (7,218)

EBITDA 982,010 873,271 1,560,271 2,022,536


Operating Income 797,845 711,647 1,255,979 1,700,878

Equity Income 7,548 36,132 14,966 15,539

Goodwill Amortization (45,535) (56,303) (50,615) (56,303)



Financial Expenses (323,441) (313,197) (683,308) (1,010,239)

Income Before Taxes 618,339 626,925 989,015 1,442,270

Social Contribution (18,443) (34,111) (37,524) (51,659)

Income Tax (51,471) (101,069) (91,175) (142,594)

Deferred Taxes (183,776) (77,462) (273,117) (348,946)

Fiscal Incentives 44,798 59,918 79,990 89,820

Net Income (before Minorities) 409,447 474,202 667,189 988,891

Minorities (67,372) (68,471) (112,334) (143,203)

Net Income 342,075 405,731 554,855 845,688

44

Annex 4 – Income Statements per Company (R$ Million)

► The table below shows the consolidation procedure in Equatorial Energia .

► The “Minority Interest” line contains an adjustment so that the net income of each company in Equatorial’s consolidated

result reflects its real ownership interest in Maranhão (65.11%), Pará (96.5%), Piauí (94.5%) and Alagoas (89.9%).

PPAs

EQTL PA, PI e AL

Operating Revenues - 90 592 1,091 1,585 667 598 38 - 2,676 - (56) 4,604

Electricity Sales - 35 - 917 1,351 544 524 - - 2,268 - - 3,370

Electricity Supply - - - 6 8 10 3 - - 14 - - 28

Construction Revenues - - 353 130 166 96 45 17 - 296 - - 806

Electricity Transmission Operations - - (4) (0) - - - (2) - - - - (5)

Operation and Maintenance Revenue - - 2 (0) - - - 4 - - - - 6

Other Revenues - 54 240 38 61 17 26 19 - 99 - (56) 399

Deductions from Operating Revenues - (13) (58) (261) (421) (181) (178) (9) - (682) - - (1,122)

Net Operating Revenues - 76.524 533 830 1,164 486 419 29 - 1,994 - (56) 3,482

Energy Service Costs - (32) (218) (468) (682) (330) (289) (8) - (1,150) - - (2,026)

Purchased Energy - (32) - (281) (417) (230) (193) - - (854) - - (1,309)

Transmission and Grid Usage Charges - - - (57) (99) (4) (51) - - - - (55)

Construction Costs - - (218) (130) (166) (96) (45) (8) - (296) - - (662)

Operating Expenses (21) (28) (5) (167) (256) (86) (69) (4) (0) (424) (3) 56 (583)

Personnel (17) (21) (3) (30) (34) (16) (12) (1) (64) - - (134)

Material (0) (1) (0) (2) (1) (1) (1) (0) (4) - - (7)

Third Party Services (4) (2) (2) (89) (87) (39) (32) (3) (0) (176) - 56 (201)

Provisions - (0) - (40) (100) (25) (22) - (139) (3) - (189)

Other (0) (4) (0) (6) (38) (1) (3) 0 (43) - - (52)

Other Operating Revenues (Expenses) - - - (0) 4 (3) (0) 0 3 - - 0

EBITDA (21) 17 311 195 226 70 61 18 (0) 421 (3) - 874

Depreciation and Amortization (0) (0) (0) (47) (78) (23) (15) 2 - (125) (0) - (162)

Operating Income (21) 17 311 148 148 47 46 19 (0) 296 (3) - 712

Equity Income 432 - - - - - - - 176 4 - (448) (13)

Equity Income 481 - - - - - - 176 4 - (448) 36

Goodwill Amortisation (49) - - - - - - - - - - (49)

Net Financial Results (5) 1 0 4 (27) (27) (9) (2) (0) (23) 1 - (65)

Financial Revenues 5 1 1 30 114 53 43 2 0 144 - (0) 249

Financial Expenses (11) (0) (1) (26) (141) (80) (52) (4) (0) (167) 1 0 (313)

Income Before Taxes 406 18 311 152 121 20 37 17 176 276 (2) (448) 634

Social Contribution - (1) - (14) (7) - (11) (1) - (21) - - (34)

Income Tax - (3) - (45) (21) - (29) (3) - (66) - - (101)

Deferred Taxes - - (113) 8 (15) - 35 7 - (7) 1 - (77)

Fiscal Incentives - 0 - 29 21 - 7 3 - 50 - - 60

Net Income (with Minorities) 406 14 198 129 99 20 39 23 176 232 (1) (448) 481

Minorities Stakes - 0 - 45 3 1 1 - 17 49 (0) - 69

Net Income 406 14 198 84 95 19 38 23 159 183 (1) (448) 406

Eliminations ConsolidatedMaranhão Pará Piauí IntesaAlagoas EQTD individual EQTD consolidadoIncome Statement by Company ('000) Holding Soluções Transmissão

45

Annex 5 – Balance Sheet (R$ Million)

EQUATORIAL ENERGIA BALANCE SHEET

46

EQUATORIAL MARANHÃO BALANCE SHEET

ASSETS (R$ '000) 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020

CURRENT ASSETS 2,464 2,743 2,489 2,694 2,762

Cash 1,278 1,512 351 646 154

Short Term Investments - 869 659 1,139

Receivables 971 965 1,222 1,344 1,393

Low Income 35 37 39 37 51

(-) Provision for Doubtful Accounts (108) (93) (331) (508) (543)

Receivable - Tariff Flags 3 - - 1 1

Services Provided 109 82 89 92 97

Related Parties 10 - - -

Judicial Deposits 3 3 3 3 3

Regulatory Assets 91 39 - -

Derivatives - - - -

Inventory 6 5 7 11 14

Taxes Recoverable 38 35 89 308 326

Recoverables from Energy Purchase and Charges 64 48 50 49 51

Others 65 48 62 53 77

NON-CURRENT ASSETS 4,706 4,603 4,646 4,517 4,489

LONG TERM ASSETS 2,812 2,739 2,735 2,524 2,471

Securities 54 57 58

Receivables 194 190 106 108 92

Regulatory Assets 142 (0) 5 -

Services Provided 3 4 2 2 2

Judicial Deposits 75 78 93 97 97

Swap Operations - - - - -

Taxes Recoverable 814 827 776 535 495

Others 1 26 22 27 23

Financial Asset 1,583 1,614 1,682 1,693 1,704

FIXED ASSETS 1,894 1,864 1,911 1,993 2,018

Intangible Assets 1,894 1,557 1,543 1,501 1,473

Contractual Assets 308 365 489 543

Right of use 3 3 2

ASSETS 7,170 7,345 7,135 7,211 7,251

LIABILITIES AND SHAREHOLDERS' EQUITY 6/30/2019 9/30/2019 12/31/2019 3/31/2020 6/30/2020

CURRENT LIABILITIES 1,017 1,009 1,083 1,606 1,782

Suppliers 317 333 365 351 332

Personnel 16 18 13 15 19

Loans and Financing 203 201 202 774 774

Debentures 176 175 102 102 15

Regulatory Liabilities 16 - 11 64

Taxes Payable 96 94 107 84 109

Taxes Payable on Net Income 18 16 27 23 30

Dividends 1 1 28 28 1

Consumer Charges 12 - - - -

Public Lighting Contribution 9 16 17 13 14

R&D in energy efficiency 55 56 57 57 56

Profit Sharing 14 22 28 36 23

Swap Operations - - - -

Contingencies Provision 31 30 28 27 20

PIS / COFINS to be refunded to consumers 56 56 293

Others 53 47 50 26 33

Lease liabilities 1 2 1

NON-CURRENT LIABILITIES 3,231 3,249 3,257 2,672 2,432

Suppliers - 14 7 7 7

Loans and Financing 1,304 1,320 1,385 782 734

Debentures 791 793 795 800 798

Taxes Payable 659 3 3 3 3

Deferred Taxes 343 355 371 374 366

Contingencies Provision 94 95 93 95 101

Regulatory Liabilities 27 5 - 41

R&D in energy efficiency 26 31 36 41 45

PIS / COFINS to be refunded to consumers 598 547 555 322

Lease liabilities 1 1 1

Others 14 13 14 14 14

SHAREHOLDERS' EQUITY 2,922 3,076 2,795 2,934 3,037

Capital Stock 1,313 1,313 1,313 1,313 1,322

Capital Reserves 1 1 - - -

Profit Reserves 1,311 1,311 1,481 1,481 1,446

Other Comprehensive Income 1 1 1

Retained Earnings 297 451 (0) 139 268

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,170 7,334 7,135 7,211 7,251

47

EQUATORIAL PARÁ BALANCE SHEET

48

EQUATORIAL PIAUÍ BALANCE SHEET

49

EQUATORIAL ALAGOAS BALANCE SHEET

50

INTESA BALANCE SHEET – REGULATORY

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