EGIE3 ENGIE Brasil

ENGIE Brasil Energia S.A. is a publicly traded corporation headquartered in Florianópolis, state of Santa Catarina, and its shares are traded on B3 under the ticker EGIE3, in the Novo Mercado segment. The company was created in 1998 following the privatization of part of the generation assets of Eletrosul, a subsidiary of Eletrobras that served the states of Mato Grosso do Sul, Paraná, Santa Catarina and Rio Grande do Sul. These assets were transferred to Centrais Geradoras do Sul do Brasil S.A. (Gerasul), whose control was acquired in an auction held at the Rio de Janeiro Stock Exchange by then GDF SUEZ Energy Latin America Participações Ltda., now ENGIE Brasil Participações Ltda., a member of the French group ENGIE S.A. In 2002, Gerasul was renamed Tractebel Energia S.A., a company that joined the Novo Mercado in 2005, strengthening its corporate governance practices. In 2016, the corporate name was again changed to ENGIE Brasil Energia S.A., aligning the name with that of its global parent, and the shares migrated from the ticker TBLE3 to EGIE3 on B3, while the receipts traded in the U.S. market began trading under the code EGIEY.

ENGIE Brasil operates as an infrastructure investment platform in the power sector, with a primary focus on centralized power generation and complementary activities in transmission and energy trading. The company operates under the independent power producer model, using concessions and authorizations for the use of public assets to build and operate power plants and transmission systems. Its generation portfolio consists of hydroelectric plants, small hydroelectric plants (PCHs), wind farms, solar photovoltaic plants and biomass-fired thermal plants, with total operated installed capacity of 11,625.5 MW as of March 31, 2025, of which 69.9% from hydroelectric plants and 30.1% from complementary renewable sources. The company concentrates its revenue in the generation segment, which accounted for around 84% of net operating revenue in 2024, complemented by revenue from transmission and energy trading.

ENGIE Brasil’s business model is structured into three main operating segments: power generation, transmission and trading. Generation, the core of the business, includes the production and sale of energy from its fleet of plants located in different regions of the country, combining long-term contracts and operations in the free market, for both conventional and incentivized energy. Transmission is responsible for the construction, implementation and operation of transmission lines, substations and other equipment associated with concessions awarded in regulatory auctions, such as the Gralha Azul, Novo Estado, Gavião Real systems, and more recently the Graúna lot and the Asa Branca Transmission System. Trading, in turn, is carried out by specialized subsidiaries – ENGIE Trading Comercializadora de Energia Ltda. and ENGIE Brasil Comercializadora de Energia Ltda. – and seeks to capture results in directional buy-and-sell energy transactions over the short and medium term, within risk limits previously defined by management.

ENGIE Brasil’s generation fleet is strongly concentrated in large-scale hydro assets, complemented by a growing portfolio of wind, solar and biomass sources. Notable hydroelectric plants include Itá, Salto Santiago, Machadinho, Salto Osório, Estreito, Cana Brava, Jaguara, Miranda, São Salvador, Passo Fundo and Ponte de Pedra, which together add up to thousands of megawatts of installed capacity and are located in major river basins such as the Uruguai, Iguaçu, Tocantins, Grande, Araguari, Passo Fundo and Correntes rivers. In complementary sources, the company operates wind complexes such as Serra do Assuruá, Santo Agostinho, Campo Largo I and II, Umburanas and Trairi, as well as several photovoltaic clusters, including Lar do Sol, Juazeiro, São Pedro, Sol do Futuro, Sertão Solar, Paracatu, Floresta, Barreiras, Assú Sol, Assú V and research and development assets in Tubarão, in the state of Santa Catarina. In biomass, generation is carried out by thermal plants that use sugarcane bagasse, avoiding the use of fossil fuels. The Rondonópolis and José Gelázio da Rocha PCHs complement the matrix with small-scale hydroelectric generation.

From a geographic standpoint, ENGIE Brasil has generation assets distributed across several Brazilian states, including Bahia, Ceará, Goiás, Maranhão, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Paraná, Santa Catarina, São Paulo, Tocantins, Rio Grande do Norte and Rio Grande do Sul. This geographic spread helps diversify hydrological and wind risks, and allows it to serve customers in different regions of the National Interconnected System. In transmission, the company operates thousands of kilometers of lines and substations in states in the South, Southeast, Center-West and North regions, increasing the capacity to deliver energy generated by its own projects and by third parties. Despite its diversified asset base, all reported net revenue comes from operations in Brazil, with no operating revenue generated in other countries, even though it is part of a multinational economic group.

On the commercial front, ENGIE Brasil maintains a diversified client base in the Free Contracting Environment (ACL), with no significant concentration in a single buyer, since no individual customer accounted for more than 10% of total net revenue in 2024. The company trades conventional and incentivized energy, serving mainly medium and large corporate consumers, as well as energy traders and distribution companies. The trading structure complements physical generation with financial and portfolio optimization transactions, taking advantage of regional, seasonal and load-profile differences. The company also offers solutions linked to decarbonization, such as carbon credits, international renewable energy certificates (I-RECs) and specific ENGIE-REC contracts, which aim to certify the consumption of electricity from renewable sources and support the greenhouse gas emissions reduction targets of its counterparties.

ENGIE Brasil operates in a highly regulated environment, with oversight by the Brazilian Electricity Regulatory Agency (Aneel) over generation, transmission and trading activities. Large hydroelectric plants and transmission systems operate under concession regimes, obtained through bidding processes conducted by the Granting Authority, while PCHs and smaller plants may operate under authorizations or registrations. Sector legislation, such as Law No. 8,987/1995 (Concessions Law) and specific regulations on renewal, rebidding and reversion of assets, defines the obligation to provide an adequate service, criteria for concession renewals and conditions for indemnification of non-amortized investments in reversible assets. Aneel also sets rules for administrative penalties, which may involve warnings, fines, restrictions on participation in new auctions and, in extreme cases, forfeiture of concessions, underscoring the importance of regulatory compliance in the company’s business model.

In line with the global strategy of the ENGIE Group, ENGIE Brasil has built a decarbonization track record for its portfolio, with an increasing focus on renewable sources. This shift included the sale of its last coal-fired thermal plant, Pampa Sul, in 2023, resulting in a generation fleet made up entirely of renewable sources – hydro, wind, solar, biomass and PCHs. The company also rotated assets in the gas transportation segment by selling its stake in Transportadora Associada de Gás (TAG) to Caisse de Dépôt et Placement du Québec (CDPQ) at the end of 2023, focusing investments on power generation and transmission, although the controlling ENGIE Group remains a significant shareholder of TAG. In 2024 and 2025, the company continued to expand its solar photovoltaic portfolio in Brazil through the acquisition of clusters such as Juazeiro, São Pedro, Sol do Futuro, Sertão Solar Barreiras and Lar do Sol, incorporated by its subsidiary ENGIE Brasil Energias Complementares Participações Ltda.

In environmental, social and governance (ESG) matters, ENGIE Brasil publishes an annual sustainability report based on international standards such as GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board), and also follows the recommendations of the TCFD (Task Force on Climate Related Financial Disclosures) in reporting climate-related risks and opportunities. The report is subject to independent verification, which in 2024 was carried out by Bureau Veritas, and includes a double materiality matrix that links environmental, social and governance topics to their potential impact on financial performance, risk and long-term value creation. This set of initiatives contributed to the company’s inclusion in the S&P Global Sustainability Yearbook 2025, among the global sustainability leaders in the power sector, and in the Dow Jones Best in Class Emerging Markets Index, reflecting external recognition of the company’s ESG practices in the context of emerging markets. The combination of a renewable asset base, corporate governance aligned with international standards and integration with sustainability metrics reinforces ENGIE Brasil’s positioning among B3-listed companies focused on the energy transition.