Brasil Energia S.A. 12nd Investor Day August 22, 2018

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 1 DISCLAIMER

This publication may include forward-looking statements on The information and opinions contained herein should not events or results pursuant to Brazilian and international be understood as a recommendation to potential investors securities’ regulations. These forward-looking statements and no investment decision should be based on the are based on certain assumptions and analyzes made by veracity, topicality or completeness of this information or ENGIE Brasil Energia S.A. (“ENGIE Brasil Energia”, these opinions. None of the advisors to ENGIE Brasil “Company” or “EBE”), - previously denominated Tractebel Energia or the parties related thereto or their Energia S.A. -, in accordance with its experience and the representatives shall accept responsibility for any losses, economic scenario, market conditions and expected events, which may occur as a result of the use or the content in many of which are outside the control of ENGIE Brasil this presentation. Energia. Important factors which can lead to significant This material includes forward-looking statements as to differences between effective results and the forward- events subject to risks and uncertainties, which based on looking statements with respect to events or results, include existing expectations and forecasts on future events and the business strategy of ENGIE Brasil Energia, economic tendencies, may affect the businesses of ENGIE Brasil and international conditions, technology, financial strategy, Energia. These forward-looking statements include development of the government services industry, forecasts of economic growth and energy supply and hydrological conditions, conditions in the financial markets, demand as well as information on competitive position, the uncertainty surrounding the results of its future operations, regulatory environment, growth potential opportunities and plans, objectives, expectations and intentions and other other matters. Innumerous factors can affect adversely the factors. In the light of these factors, the effective results of estimates and assumptions on which these statements are ENGIE Brasil Energia may differ significantly from those based. indicated or implicit in the forward-looking statements with respect to events or results.

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 2 CONTENT

Who are Regulatory Competitive Walk ENGIE Brasil Jaguara HPP we? Environment Differentials the talk Energia & Update Case studies Strategy Miranda HPP

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 3 Who are we? Eduardo Antonio Gori Sattamini (Chief Executive Officer) ENGIE BRASIL ENERGIA Who are we?

» Long-term presence in

» Largest private generator of energy in the country

» Revenues of BRL 7 billion in 2017

» 31 power plants: 9,429 MW operated by the Company

» 89% in clean and renewable sources

» Expansion: 1,002 MW of capacity and 1,050 Km in transmission lines under construction

» More than 400 clients with signed Free Market agreements

» 1,171 employees

» Component of the Corporate Sustainability Index (ISE) since its inception

» Part of ENGIE, the largest independent energy group in the world

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 5 Regulatory Environment Update

Edson Luiz da Silva (Chief Strategy and Regulation Officer) AGENDA

Opening up of the Market

Introducing of Capacity Remuneration

Challenges for ENGIE

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 7 Opening up of the Market

8/22/2018 SECTOR REFORM AND MARKET OPENING

Principle drivers of Reform Dilemma of market opening » Market opening and a reduction in » Providing the consumer with the right barriers against the participation of new to choose is an element which drives agents efficiency through the competitive » Economic response as a vector for mechanism itself aligning individual and systemic interests » Adequate allocation of risks to ensure their individual management So why the fear and the » Respect for current agreements and precaution in opening adherence to the requirements and the roles of each institution the market?

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 9 SECURITY X ADEQUACY

Security of Suitability of supply supply

• Capacity of the electricity • Capacity of the system to support electricity system to sudden outages such as meet demand on the short circuits and/or basis of a given supply equipment failure criterion

• Operating Horizon • Expansion Horizon

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 10 HOW IS EXPANSION MADE FEASIBLE TODAY?

Agreement 3 Sales thru Agreement 4 the ACL Agreement 2 Agreement 1

Sales thru Revenue via long-term agreements the ACR 70% (ACR auctions)

» If we want a totally free market where all can choose their own supplier: • How can we fund the construction of new plants, when we cannot oblige the consumer to enter into long-term supply agreements? • What to do with the sunk costs if the consumers enter into an agreement with a new source supplying more competitive energy?

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 11 PROVIDING A SUITABLE LEVEL OF SUPPLY in a freer market

» The key is to ensure the existence of receivables adequate for the financing of expansion and, at the same time, ensure that the sunk costs are not borne exclusively by those consumers remaining in the regulated environment » Some actions:

To create an additional long-term receivable which stabilizes part of the revenue flow from the generator but which supports and makes sense economically as a catalyst for suitability of supply over the long-term 1 • introducing of capacity remuneration

Gives greater realism and credibility to the spot price, for fostering liquidity and the 2 creation of new products for mitigating risk in the wholesale market • The spot price offers guarantees of credible receivables

To establish a gradual market opening, permitting investments to be made during a maturing/learning phase of the new regulatory framework and allowing legacy costs to 3 be adequately administered

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 12 Introducing of Capacity Remuneration

8/22/2018 WHAT IS CAPACITY?

» It depends... • It is the critical variable considered in the supply criterion

Thermoelectric Hydroelectric NCRE systems systems systems

Risk aversion of a Risk aversion of a Risk aversion of a capacity deficit energy deficit flexibility deficit

Investment in Investment in Investment until plants until the available plants until the meeting of the continuity of supply is power is sufficient to the energy load is guaranteed given a meet peak demand plus guaranteed at a given certain scenario of a margin level of risk disequilibrium

FlexOperational > PAvail = 1.05 x DMax PG = Load FlexCritical

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 14 WHAT WE USE TODAY IN BRAZIL

Energy Market » Is the market in which differences between the measurement (consumption or generation) and the agreements are valued at the PLD » The entity is exposed when measurement is different from the contracted volume

Capacity Market » Is the market where the positive differences between the requirements (consumption and sales agreements) and the resources (physical guarantee or purchase agreements) are valued according to the penalty » The agent is exposed when requirements are greater than resources. considering a moving window of 12 months

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 15 BREAKDOWN OF THE CAPACITY AND ENERGY MARKETS

» Can the centralized contracting of capacity coexist with the energy free market? • Yes, but it needs an explicit separation between Energy and Capacity

Capacity Market • Centralized contracting within a reasonable timeframe, mandatory, for all consumers where costs are recovered via charge

Energy Market (agreements) • Long-term contracting serves as protection against PLD volatility • ACR auctions maintained • For ACL, the principle of free choice of supplier is maintained

Short-term Market • The maximum PLD amount is calibrated so that the expected revenue from energy + capacity = Marginal Cost of Expansion (MCE)

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 16 CAPACITY AND ENERGY what would the generator receivables look like?

CURRENT:

Sales thru the ACL

Agreement 3 Agreement 4 Agreement 2 Agreement 1

Sales thru the ACR

Revenue via long-term contracting 70% (ACR Auctions)

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 17 CAPACITY AND ENERGY what would the generator receivables look like?

AFTER:

Sales thru the ACL

Agreement 7 Agreement 6 Agreement 5 Agreement 4 Agreement 3 Agreement 2 Agreement 1

Capacity Auction

Revenue related to capacity (suitability) which the plant offers to X% the system

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 18 CAPACITY AND ENERGY contracting auctions

NCRE Systems » The inclusion of large scale renewable intermittent generation in the matrix has drawn attention to the need Risk aversion of a to ensure that in addition to energy security, the system flexibility deficit has adequate operational flexibility

Investment » If renewable generation technologies (e.g.: wind and until the continuity of solar) are cheaper in terms of the levelized cost of supply is guaranteed given a certain scenario of energy (LCOE), how to ensure that other plants are also disequilibrium contracted to guarantee adequacy of supplies?

FlexOperational > FlexCritical

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 19 CAPACITY AND ENERGY contracting auctions

» Ways of operationalizing: NCRE 1. Establish on a centralized basis (EPE) the needs of each Systems source and to hold segregated auctions, or

Risk aversion of a 2. Hold a single auction, equalizing the competition through flexibility deficit the “correct” valued of the characteristics of each source: a) Through handicaps Investment b) Technical requirements for connection, for instance: until the continuity of supply is guaranteed • to be able to perform ramp up until x MW/h given a certain scenario of disequilibrium • to be able to keep constant generation for x minutes

c) The definition of homogenous energy products tends to be FlexOperational > critical FlexCritical 3. In addition, create market for ancillary services

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 20 Challenges for ENGIE

8/22/2018 FREE MARKET how it has been so far

Free Market (Wholesale) 18.00018,000 5000

16.00016,000 4500

4000 14,00014.000 3500 12.00012,000 3000 10.00010,000 2500 8,0008.000

2000 Average MW Average 6,0006.000 ofconsumers Number 1500 4,0004.000 1000

2.0002,000 500

0 0

EspecialSpecial ConvencionalConventional NúmeroNumber de of consumidores special consumers especiais NúmeroNumber deof consumidores free customers livres

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 22 FREE MARKET how it will become Reduction of Current minimum for eligibility free choice to 2 MW Reduction of Reduction of minimum for minimum for free choice to 1 free choice MW and to 0.3 MW Reduction of creation of the minimum for retail consumer free choice to 2.3kV Reduction of Opening of minimum for Low Voltage free choice (LV) segment to 0.5 MW

Jan/2018 Jan/2019 Jan/2020 Jan/2021 Jan/2022 Jan/2023 Jan/2024 Jan/2025 Jan/2026 Jan/2027 Jan/2028 FC FC 3MW FC FC 2MW FC FC 1MW SC SC FC FC FC FC SC 0.5MW SC FC

0.3MW RC1 RC1 RC1 1 1 2 2 >2.3kV RC RC FC FC

LV

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 23 FREE MARKET volume and incremental number of consumers

Number of Incremental Incremental Incremental Period Demand Threshold incremental Market Market Market * consumers [GWh/year] [avg.MW] [%] Jan/20 <3,000 KW and >2,000KW 236 6,205 708 4%

Jan/21 <2,000 KW and >1,000KW 1,295 9,968 1,138 6%

Jan/22 <1,000 KW and >500KW 5,180 14,952 1,707 9%

Jan/24 <500 KW and >300KW 5,341 25,062 2,861 16%

Jan/26 Any connection >2.3kV 170,296 17,327 1,978 11%

Jan/28 Any demand Entire market Entire market Entire market -

* Percentage of the current free market (base 2017) Source: Internal studies, estimated numbers.

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 24 CHALLENGES

To work proactively on the details of the new regulatory framework in an environment conditioned by significant limits » Transition to a context in which market fundamentals prevail over centralized decisions » Introduction of the hourly price » Gradual reduction in subsidies » End of the Itaipu agreement » End of the GasBol supply agreements » End of inefficient thermal agreements

Prepare ENGIE for the new environment » Implementation of compatible infrastructure with greater price granularity • Risk management • Back office » Adjustment of commercial strategy and expansion in the universe of products

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 25 Competitive Differentials Case studies Carlos Freitas (Chief Financial and Investor Relations Officer) COMPETITIVE DIFFERENTIALS how do we manifest our differentials

Development of projects Financial discipline and soundness

Execution Consolidated position in the capacity Free Market for energy

ML

Consistent Excellence and portfolio technology in management and operations mitigation of risks

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 27 CASE STUDY: Development making Umburanas Wind Complex viable of projects

BA Umburanas WC Auction: Nov/2014 (A-5) Mix of Free and Regulated Market CHALLENGES SOLUTIONS FOUND

Acquisition Price: R$ 16.9 million • Acquisition of the project in Contractual schedule with the market (Renova); suppliers; Total Installed ACR Capacity: Contracted • Financial restructuring of the Mix of PPAs in the Regulated 360 MW Price: project; and Free markets; ACR: ACL: R$ 168 /MWh • Redefinition of the project Logistical optimizations; 102.5 MW 257.5 MW with Aneel; New schedule and technical Commercial Capacity • Tight schedule. configuration. 207.5 avg.MW

Investment : R$ 1.7 billion - (Oct/2017)

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 28 CASE STUDY: Development making Umburanas Wind Complex viable of projects

BA Umburanas WC Auction: Nov/2014 (A-5)

Mix of Free and Regulated Market

Acquisition Price: R$ 16.9 million BENEFITS

Total Installed ACR Increase in the participation Capacity: Contracted High capacity of renewable 360 MW Price: factor sources ACR: ACL: R$ 168 /MWh 102.5 MW 257.5 MW Project with Attractive capacity for Commercial Capacity rate of return 207.5 avg.MW expansion

Investment : R$ 1.7 billion - (Oct/2017)

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 29 CASE STUDY: Execution capacity Campo Largo Wind Complex - Phase 1

BA Campo Largo WC Auction: Nov/2014 (A-5) Discount in relation to price ceiling: 1% CHALLENGES SOLUTIONS FOUND

Total Installed ACR • Contracting in the ACR Mix of PPAs in the Regulated Capacity: Contracted market in a competitive and Free markets; 326.7 MW Price: environment; ACR: ACL: R$ 166 Creative solutions with the /MWh 178.2 MW 148.5 MW • Prospecting clients in the BNDES; Free Market; Commercial Capacity 25 socio-environmental projects 164.9 avg.MW • Financing for Free Market surrounding the Complex with the BNDES; Investment: • Local community R$ 1.8 billion – (Jun/2014) requirements.

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 30 CASE STUDY: Execution capacity Campo Largo Wind Complex - Phase 1

BA Campo Largo WC Auction: Nov/2014 (A-5)

Discount in relation to price ceiling: 1% BENEFITS Total Installed ACR Capacity: Contracted Anticipation Increased share in Price: 326.7 MW of operational renewable sources ACR: ACL: R$ 166 startup /MWh 178.2 MW 148.5 MW

Commercial Capacity Socio-economic Capacity for 164.9 avg.MW Development expansion

Investment: R$ 1.8 billion – (Jun/2014)

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 31 CASE STUDY: Excellence and modernization of plants technology in operation

PR Modernization of Salto Santiago HPP Operation start: 1980 CHALLENGES SOLUTIONS FOUND Assured Total Installed Energy: • End of equipment’s useful Modernization of the units; Capacity: 733.3 life; 1,420 MW Digitalization of systems and avg.MW • Possibility of failures and processes; breakdowns. Technology updated with Amount invested in increase in turbine and modernization generator productivity. R$ 427.5 million

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 32 CASE STUDY: Excellence and modernization of plants technology in operation

PR Modernization of Salto Santiago HPP Operation start: 1980

Assured Total Installed Energy: BENEFITS Capacity: 733.3 1,420 MW Extension of the avg.MW Greater reliability economic life of the plant and uptime Amount invested in modernization Reduction Benchmarking Assured energy increased by R$ 427.5 million in O&M costs for other modernizations 7.9 avg.MW

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 33 CASE STUDY: Excellence and Generation Operation Center (COG) technology in operation

Generation Operation Center (COG) CHALLENGES SOLUTIONS FOUND Growth of 107% in the installed capacity. • Distance between plants; Centralized plant operations; Generating Complex jumped from 8 to 31 plants. • Management of teams; Enhanced monitoring systems; • Identification of risks for Revision of processes; remote operations; Implementation contingencies • Need for more robust control site; and supervisory systems; Telecom via satellite, • Unreliable telecom system. with triple redundancy.

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 34 CASE STUDY: Excellence and Generation Operation Center (COG) technology in operation

Generation Operation Center (COG)

Growth of 107% in the installed capacity. Generating Complex jumped BENEFITS from 8 to 31 plants. Optimization of human Reduction of O&M costs resources

Focus on Greater agility High degree operation of of normatization in decision-making the plants in the operation

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 35 Consistent CASE STUDY: portfolio management generation portfolio management and mitigation of risks

Estimate of UTLC Generation (2017) CHALLENGES SOLUTIONS FOUND Need to anticipate the maintenance stoppage at UTLC from October to July 2017 risking • System’s critical situation in Strategy of hedging the new degradation of performance and increasing 2H17; maintenance date; the possibility of unscheduled stoppages • High energy volumes to be Leveraging the synergies replaced (~300 avg. MW); between the Plant’s technical team and the portfolio • Period for closing off management team; uncovered positions. 18 short-term operations (swap, purchase and sale) for neutralizing exposure.

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 36 Consistent CASE STUDY: portfolio management generation portfolio management and mitigation of risks

Estimate of UTLC Generation (2017)

Need to anticipate the maintenance stoppage at UTLC from October to July 2017 risking BENEFITS degradation of performance and increasing the possibility of unscheduled stoppages Neutralization of the exposure from anticipated maintenance stoppage

Additional gain from increased output from the unit

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 37 Consolidated position in the CASE STUDY: Free Market ML pioneering spirit and innovations in the Free Market for energy

Operations in the ML Free Market CHALLENGES SOLUTIONS FOUND EBE has become a reference in the Free Market by offering • To foster migration from the Representation on the CCEE; customized service and Captive Market; Innovative agreements (e.g.: products, which have become • To meet the multiple needs of price ceiling at the captive tariff); standard nowadays. clients drawn from various sectors and profiles of Customized agreements, for consumption; adherence and retailer;

• Credit management. Portfolio diversification; Structured credit analysis;

Portfolio of contractual guarantees.

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 38 Consolidated position in the CASE STUDY: Free Market ML pioneering spirit and innovations in the Free Market for energy

Operations in the ML Free Market

EBE has become a reference in the Free Market by offering customized service and BENEFITS products, which have become standard nowadays. Consistent growth Contracting in the Free Market for medium term

Predictability Zero Creation of value of cash flow delinquency for clients and Company

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 39 CASE STUDY: Discipline and funding for Jaguara and Miranda HPPs financial soundness

Jaguara and MGMG MG Miranda HPPs Auction: Sep/2017

Concession term: 30 years CHALLENGES SOLUTIONS FOUND

Total Installed Commercial • Restricted timeframe of just Bridging and Non Recourse Capacity: Capacity: 60 days; loans; 832 MW 539.2 avg.MW • Significant volume to be Issue both at the SPE as well as financed; the Corporate level: Quotas Ratio • Structuring of the operation. » At the SPEs: PN with a firm ACL: 70 / 30% non-recourse takeout commitment Investment: » At EBE: Law 4131 borrowing R$ 3.5 billion (Sep/2017) of 1, 3 and 5 years

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 40 CASE STUDY: Discipline and funding for Jaguara and Miranda HPPs financial soundness

Jaguara and MGMG MG Miranda HPPs Auction: Sep/2017

Concession term: 30 years

Total Installed Commercial Capacity: Capacity: BENEFITS 832 MW 539.2 avg.MW Acquisition Competitive rates, Quotas Ratio totally financed with debt in line with the brAAA ACL: 70 / 30% rating

Investment: Ability to capture the best windows of opportunity R$ 3.5 billion (Sep/2017) due to solid credit quality

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 41 Walk the talk Eduardo Antonio Gori Sattamini (Chief Executive Officer) WALK THE TALK

Evolution of Installed Capacity in Greenfield Projects (MWh) 535 4.3244,324 1.1291,129 We have a recognized capacity 2.6602,660 in execution

HydrosHidros Eólica,Wind, PCH,SHP, TérmicasThermal CapacidadeCapacity to Addition of installed biomassa,biomass, adicionadabe added byaté solar 2019 Greenfield capacity solar

Installed Capacity Installed Capacity in To expand participation in under Construction (MW) Development (MW) non-conventional 237 renewables and gas-fired 345 generation 600 1175

657 1,002 MW under construction and 2,012 MW in development EólicaWind TérmicaThermal EólicaWind GásGas SolarSolar

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 43 WALK THE TALK

Energy Decontracting Level

14,0%14.0% 12.3%12,3% 12,0%12.0% Efficient commercial 10,0%10.0% 7,5% 7,6% strategy 8.0%8,0% 7.5% 7.6% 6.0%6,0% 4.3%4,3% 4.0%4,0% 2,1%2.1% 1,3%1.3% 1,3% 2.0%2,0% 1,2%1.2% 1.1%1,1% 1.3% 0,7% 0.3%0,3% 0,3%0.3% 0.7% 0.0%0,0% Protection of results in the 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 short and medium terms

2400 500 2200 450 2000 400 1800 Leadership in the 1600 350 1400 300 Free Market 1200 250 1000 200 800

Avg. Avg. MW 150 600 400 100 200 50

0 0 NumberofFree Customers Consistent growth and

long-term presence EnergyEnergia Billings Faturada to Freepara CustomersClientes Livres NúmeroNumber deof FreeClientes Customers Livres

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 44 WALK THE TALK

ROE and ROIC levels above the market median Consistent We do not want to ROE ROIC portfolio grow for the sake of 15.8915,89 management 30,3130.31 14,8814.88 14,9314.93 growing, we want to 14.0614,06 14,3914.39 26.3026,30 25.7825,78 26,5526.55 and mitigation grow generating 23.3123,31 of risk 20,0120.01 9,309.30 value 7.177,17 7,617.61 13,0813.08 6,676.67 7,007.00 8,798.79 8,578.57 7,647.64

Note: 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 *Median Peer Group: incorporates peers in the ROE - EGIE3 ROE - MED PEERS ROIC - EGIE3 ROIC - MED PEERS electric sector which are part of the Ibovespa stock index. Source: Economática

AAA

Financial discipline AA+ and solidity AA Engie Brasil Energia S.A. AA- ‘AAA (bra)’ Fitch Ratings

A+ Long Term National Rating Evolution 2003 to 2018 AAA ratings confirmed in A the past 6 years

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 45 WALK THE TALK

Decarbonization, Decentralization and Digitalization

Decomissioning of plants, distributed solar energy, retail trading, COG

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 46 EBE Strategy Eduardo Antonio Gori Sattamini (Chief Executive Officer) ENGIE BRASIL ENERGIA STRATEGY

Growth in renewable Greater proximity to sources clients

Creation of a generation, Expansion of transmission and gas operational efficiency via platform in infrastructure state-of-the-art technology

8/22/2018 ENGIE BRASIL ENERGIA S.A. – INSIDE ENGIE 2018 PRESENTATION 48 Jaguara HPP (UHJA) & Miranda HPP (UHMI) José Luiz Jansson Laydner (Chief Generation Officer) A SHORT HISTORY

Timeline

Public Publication Online Board of hearing: of auction registration: Directors May 19 to Jun 18 Aug 9 Sep 19 and Sep 20 Sep 25

Advanced Visits to the Investment 1st memo notice: CPAC HPPs: Notice: Auction 4/05/2017 Jul 20 Aug 21 to Aug 25 CDE Sep 21 Sep 27

Competitors

» State Power Inv. Co. (SPIC): Chinese company with operations in Brazil through the recently acquired Pacific Hydro;

» ENEL: an Italian company with operations in Brazil in the generation, transmission and distribution areas.

» Aliança: Joint Venture between with VALE (55% Vale / 45% CEMIG), authorized to bid, although did not present proposals.

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 50 RESULT – DISCLOSURE - REPERCUSSION

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 51 CHARACTERISTICS

MG MG JAGUARA HPP MIRANDA HPP » River: Grande » River: Araguari » Location: Sacramento / MG » Location: Indianópolis / MG Rifaina / SP Uberlândia / MG

Total Installed Physical Total Installed Physical Capacity: Guarantee: Capacity: Guarantee: 424 MW (4 x 106 MW) 341 avg.MW 408 MW (3 x 136 MW) 198.2 avg.MW

COD: Operation: Run-of-River COD: Operation: Run-of-River 1971 1998

OEM (Turbine/Generator): Mitsubishi/Siemens OEM (Turbine/Generator): IMPSA

SSs: 13.8/345 kV -> (SS Jaguara – CEMIG T) SSs: 16.5/138 kV -> (SS Miranda – CEMIG D)

OL: IBAMA - Validity: October / 2023 OL: COPAM / MG (Rectification 01/12/18) Validity: February / 2012

Reservoir (perimeter / area): Municipalities Reservoir (perimeter / area): Municipalities 75 km / 33 km2 affected: 3 247 km / 52 km2 affected: 4

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 52 CHARACTERISTICS - PHOTOS

JAGUARA HPP MIRANDA HPP

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 53 PRINCIPAL CORPORATE AND REGULATORY ACTIVITIES

Creation of SPEs » Special Purpose Entities – SPEs (Companhia Energética Jaguara and Companhia Energética Miranda) were set up following the auction. » Once the SPEs were in place, an effort was made to open branches.

Signature of the Concession Agreement » Agreements signed on November 10, 2017. » Payment of the Bonus for the Grant took place 20 days after the signature of the agreement.

Adherence to the CCEE Operating Agreement Signature of connection agreements

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 54 ENGIE – O&M – BUSINESS PLAN

Remote Concession ENGIE Transition Team Agreement Operation

CEMIG Assisted Operation Permanent ENGIE Team

Nov 10, 2017 Dec 29, 2017 Jan, 2019 * Nov 13, 2017

REGIONAL MANAGER

OPERATION AND ENVIRONMENT ADMINISTRATIVE WORK SAFETY PLANT MANAGER MAINTENANCE

53 3 10 3 2

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 55 HANDOVER AND ACTIONS FOR “PERMANENT OPERATION”

» Formation of the transition team » Handover » Continuity of agreements » Communication System (telephony, data links, radios, etc) » Technical/historical operational documentation » Technical diagnosis of the installations • Civil structures, principal equipment » Plant infrastructure – spare parts, tooling, etc » Relationship with stakeholders • Municipal governments, communities, electricity sector, environmental protection agency, etc » Occupational health and safety » Remote operation » Investment plan (modernization) » Formation of permanent team

8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 56 8/22/2018 ENGIE BRASIL ENERGIA S.A. - INSIDE ENGIE 2018 PRESENTATION 57