FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables)

3 Months Ended

Mar. 31, 2022

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Summary of measurement of financial leveraging index

	3/31/2022		12/31/2021
Total loans, financing and debentures	41,638,798		44,015,645
(-) Cash and cash equivalents	(149,244)		(192,659)
(-) Marketable Securities	(15,544,216)		(15,873,853)
Net debt	25,945,338		27,949,133
(+) Total shareholders’ equity	79,120,715		76,416,764
Total Capital	105,032,851		104,365,897
Financial leverage index	25	%	27	%

Summary of the accounting balances of financial assets and liabilities represent a reasonable approximation of fair value

	Level	3/31/2022	12/31/2021
FINANCIAL ASSETS
Amortized cost		20,048,461	21,126,404
Loans and financing		5,195,278	5,843,527
Reimbursement rights		6,373,111	6,396,234
Financial Asset - Generation		2,172,580	2,172,162
Financial Asset - Itaipu		400,234	428,865
Customers		5,748,206	6,088,056
Cash and cash equivalents		149,244	192,659
Marketable Securities		9,808	4,901
Fair value through profit		18,899,986	19,268,020
Marketable Securities	2	15,534,408	15,868,952
Decommissioning fund	2	2,101,589	2,055,713
Derivative Financial Instruments	2	1,263,989	1,343,355
Fair value through other comprehensive results		1,922,916	1,878,609
Investments (Equity Holdings)	1	1,922,916	1,878,609
FINANCIAL LIABILITIES
Amortized cost		48,066,403	50,491,870
Loans, financing and debentures		41,638,798	44,015,645
Financial Liability - Itaipu		1,064,344	578,626
Repayment obligations		1,199,689	859,003
Suppliers		3,217,463	4,048,087
Leases		857,404	903,484
Concessions payable UBP		88,705	87,025
Remuneration to shareholders		1,435,014	1,406,891

Summary of analysis of non-derivative financial liabilities by maturity

	3/31/2022
	Payment flow
	Up To 1 Year	From 1 to 2 years	From 2 to 5 years	More than 5 years	Total
FINANCIAL LIABILITIES (current / non-current)
Measured at amortized cost	13,028,361	12,560,900	14,221,120	17,140,482	56,950,863
Loans, financing and debentures	8,414,190	11,941,397	14,146,151	16,966,513	51,468,251
Suppliers	3,200,908	16,555	—	—	3,217,463
Reimbursement obligations	1,199,689	—	—	—	1,199,689
Leases	207,993	595,427	56,886	33,635	893,941
Concessions payable UBP	5,581	7,521	18,083	140,334	171,519

	12/31/2021
	Payment flow
	Up To 1 Year	From 1 to 2 years	From 2 to 5 years	More than 5 years	Total
FINANCIAL LIABILITIES (current / non-current)
Measured at amortized cost	14,802,340	9,068,371	20,021,202	19,627,075	63,518,988
Loans, financing and debentures	9,674,220	8,693,204	19,650,487	19,413,779	57,431,690
Suppliers	4,031,532	16,555	—	—	4,048,087
Repayment obligations	859,003	—	—	—	859,003
Leases	232,215	351,395	355,101	75,248	1,013,959
Concessions payable UBP	5,370	7,217	15,614	138,048	166,249

Risk of exchange rate appreciation:

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Summary of assumptions adopted

		Balance as of 3/31/2022			Effect on income
		Foreign		Scenario I -	Scenario II		Scenario III
		Currency	BRL	Probable 2022¹	(+25%)¹		(+50%)¹
	Loans, financing and debentures	(1,414,264)	(6,700,501)	(1,247,663)	(3,234,704)		(5,221,745)
USD	Loans granted	145,401	688,883	128,271	332,559		536,847
	Financial Asset - Itaipu	91,817	435,008	81,004	210,006		339,009
	Impact on income	(1,177,046)	(5,576,610)	(1,038,388)	(2,692,139)		(4,345,889)
EURO	Loans, financing and debentures	(45,897)	(241,238)	(52,813)	(126,326)		(199,839)
	Impact on income	(45,897)	(241,238)	(52,813)	(126,326)		(199,839)
Impact on income of exchange rates				(1,091,201)	(2,818,465)		(4,545,728)
(¹) Assumptions adopted:			3/31/2022	Probable	+25	%	+50	%
	USD		4.74	5.62	7.03		8.43
	EURO		5.26	6.41	8.01		9.61

Interest rate appreciation risk

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Summary of impact of each scenario on company results, sensitivity analysis

				Effect on income
				Scenario I -
		Balance as of		Probable		Scenario II		Scenario III
		3/31/2022		2022 ¹		(+25%) ¹		(+50%) ¹
CDI	Loans, financing and debentures	(12,691,857)		(1,668,809)		(2,086,011)		(2,503,213)
	Impact on income	(12,691,857)		(1,668,809)		(2,086,011)		(2,503,213)
SELIC	Loans, financing and debentures	(5,254,068)		(696,164)		(870,205)		(1,044,246)
	Reimbursement AIC	662,670		87,804		109,755		131,706
	Impact on income	(4,591,398)		(608,360)		(760,450)		(912,540)
TJLP	Loans, financing and debentures	(5,062,730)		(354,391)		(442,989)		(531,587)
	Impact on income	(5,062,730)		(354,391)		(442,989)		(531,587)
IGPM	Loans granted	241,090		24,590		30,737		36,885
	Leases liability	(857,404)		(87,451)		(109,313)		(131,176)
	Impact on income	(616,314)		(62,861)		(78,576)		(94,291)
Impact on income of the indexes				(2,694,421)		(3,368,026)		(4,041,631)
(¹) Assumptions adopted:		3/31/2022		Probable		+ 25	%	+ 50	%
	CDI	13.15	%	13.15	%	16.44	%	19.72	%
	SELIC	13.25	%	13.25	%	16.56	%	19.88	%
	TJLP	7.00	%	7.00	%	8.75	%	10.50	%
	IGPM	10.20	%	10.20	%	12.75	%	15.30	%

Interest rate depreciation risk

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Summary of impact of each scenario on company results, sensitivity analysis

				Effect on income
				Scenario I -
		Balance as of		Probable		Scenario II		Scenario III
		3/31/2022		2022 ¹		(-25%) ¹		(-50%) ¹
	Loans, financing and debentures	(5,013,498)		375,184		281,388		187,592
IPCA	Loans granted	116,253		(8,700)		(6,525)		(4,350)
	Right of reimbursement	5,710,441		(427,339)		(320,505)		(213,670)
	Impact on income	813,196		(60,855)		(45,642)		(30,428)
Impact on income of exchange rates				(60,855)		(45,642)		(30,428)
(¹) Assumptions adopted:		3/31/2022		Probable		-25	%	-50	%
	IPCA	7.48	%	7.48	%	5.61	%	3.74	%

Price risk

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Summary of impact of each scenario on company results, sensitivity analysis

Embedded derivative	Possible	Scenario I	Scenario II	Scenario III	Scenario IV
Electric power supply	1,263,989	947,992	631,995	1,579,986	1,895,984