The operating segments of the Company and its subsidiaries reflect their management and their organizational structure, used to monitoring its results.

In 2023, due to a change in the way in which the Company’s chief operating decision maker (CODM) evaluates the operating segments performance, the Company changed its operational segments and began to publish information on the Gas business segment separately. To maintain comparability, the information for 2022 is now restated using the same criterion.

The segment information is disclosed separately into the following 6 reportable segments:

Transfer of energy from the generation activity to the trading activity comprises a transaction between segments, since it consists of obtaining of revenue from the sale of energy generated, and costs for purchase of energy to be traded - these are measured at sale prices estimated in accordance with criteria based on the Company’s model for management of these businesses, using market prices as a reference.


INFORMATION BY SEGMENT AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2023
Description	Energy												Gas			Investees			Total			Inter segment transactions (1)			Reconciliation (2) (3)			Total
	Generation			Transmission			Trading			Distribution
NET REVENUE		2,875			1,091			7,686			23,348			3,618			18			38,636			(1,208	)		(578	)		36,850

COST OF ENERGY, GAS AND CHARGES FOR USE OF THE NATIONAL GRID		(347	)		-			(6,318	)		(12,656	)		(2,237	)		(4	)		(21,562	)		1,208			532			(19,822	)

COSTS AND EXPENSES (3)
Personnel		(148	)		(137	)		(27	)		(875	)		(73	)		(48	)		(1,308	)		-			-			(1,308	)
Employees’ and managers’ profit sharing		(16	)		(16	)		(3	)		(102	)		-			(20	)		(157	)		-			-			(157	)
Post-employment obligations		(59	)		(36	)		(8	)		(400	)		-			(88	)		(591	)		-			-			(591	)
Materials, outsourced services and others expenses (revenues)		(223	)		(88	)		(18	)		(2,157	)		(63	)		275			(2,274	)		-			46			(2,228	)
Depreciation and amortization		(327	)		(1	)		-			(834	)		(94	)		(18	)		(1,274	)		-			-			(1,274	)
Operating provisions and impairment		(29	)		(14	)		(7	)		(455	)		2			(106	)		(609	)		-			-			(609	)
Construction costs		-			(172	)		-			(3,600	)		(300	)		-			(4,072	)		-			-			(4,072	)
Total cost of operation		(802	)		(464	)		(63	)		(8,423	)		(528	)		(5	)		(10,285	)		-			46			(10,239	)

COSTS AND EXPENSES		(1,149	)		(464	)		(6,381	)		(21,079	)		(2,765	)		(9	)		(31,847	)		1,208			578			(30,061	)

Equity in earnings of unconsolidated investees, net		(2	)		-			-			-			-			434			432			-			-			432
Gains arising from the sale of non-current asset held for sale		-			-			-			-			-			9			9			-			-			9
Result of business combination		-			-			-			-			-			-			-			-			-			-

INCOME BEFORE FINANCE INCOME (EXPENSES)		1,724			627			1,305			2,269			853			452			7,230			-			-			7,230
Finance net income (expenses)		(11	)		(48	)		82			(253	)		(9	)		(140	)		(379	)		-			-			(379	)
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX		1,713			579			1,387			2,016			844			312			6,851			-			-			6,851
Income tax and social contribution tax		(326	)		(114	)		(428	)		(405	)		(248	)		437			(1,084	)		-			-			(1,084	)
NET INCOME FOR THE YEAR		1,387			465			959			1,611			596			749			5,767			-			-			5,767
Equity holders of the parent		1,387			465			959			1,611			593			749			5,764			-			-			5,764
Non-controlling interests		-			-			-			-			3			-			3			-			-			3


Information by Segment as of and for The Year Ended December 31, 2022 (restated)
Description	Energy												Gas			Investees			Total			Inter segment transactions (1)			Reconciliation (2) (3)			Total
	Generation			Transmission			Trading			Distribution
NET REVENUE	2661			1195			7918			20919			3690			7			36390				(1,423	)		(504	)	34463

COST OF ENERGY, GAS AND CHARGES FOR USE OF THE NATIONAL GRID		(331	)					(6,880	)		(11,938	)		(2,735	)		(1	)		(21,885	)	1423			442				(20,020	)

OPERATING COSTS AND EXPENSES (3)
Personnel		(162	)		(135	)		(12	)		(913	)		(66	)		(64	)		(1,352	)								(1,352	)
‘Employees and managers’ income sharing		(15	)		(11	)		(6	)		(40	)		-			(11	)		(83	)								(83	)
Post-employment obligations		(66	)		(42	)		(10	)		(421	)		-			(87	)		(626	)								(626	)
Materials, outsourced services and others expenses (revenues)		(395	)		(96	)		(14	)		(1,786	)		(57	)		(84	)		(2,432	)				62				(2,370	)
Depreciation and amortization		(328	)								(738	)		(91	)		(25	)		(1,182	)								(1,182	)
Operating provisions and impairment		(18	)		(3	)		(34	)		(398	)					(3	)		(456	)								(456	)
Construction costs					(291	)					(3,193	)		(52	)		-			(3,536	)								(3,536	)
Total operating costs		(984	)		(578	)		(76	)		(7,489	)		(266	)		(274	)		(9,667	)		-		62				(9,605	)
	3
OPERATING COSTS AND EXPENSES		(1,315	)		(578	)		(6,956	)		(19,427	)		(3,001	)		(275	)		(31,552	)	1423			504				(29,625	)

Equity in earnings of unconsolidated investees, net		(2	)	3												842			843									843
Fair value of business combination		-														5			5									5

OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES)	1344			620			962			1492			689			579			5686				-			-		5686
Finance net income (expenses)		(150	)		(96	)	34				(1,115	)		(9	)		(230	)		(1,566	)								(1,566	)
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX	1194			524			996			377			680			349			4120				-			-		4120
Income tax and social contribution tax		(307	)		(174	)		(314	)	67				(199	)	901				(26	)								(26	)
NET INCOME FOR THE YEAR	887			350			682			444			481			1250			4094				-			-		4094
Equity holders of the parent	887			350			682			444			479			1250			4092									4092
Non-controlling interests													2						2									2


	Information by Segment as of and for The Year Ended December 31, 2021 (restated)
Account/description		Energy												Gas			Investees			Total			Inter segment transactions (1)			Reconciliation (2) (3)			Total
		Generation			Transmission			Trading			Distribution
NET REVENUE			2,921			1,094			6,430			22,345			2,852			6			35,648			(1,575	)		(427	)		33,646

COST OF ENERGY, GAS AND CHARGES FOR USE OF THE NATIONAL GRID			(795	)					(5,735	)		(14,853	)		(2,011	)					(23,394	)		1,575			370			(21,449	)

OPERATING COSTS AND EXPENSES (3)
Personnel			(149	)		(115	)		(20	)		(847	)		(56	)		(53	)		(1,240	)								(1,240	)
‘Employees and managers’ income sharing			(14	)		(14	)		(3	)		(94	)					(9	)		(134	)								(134	)
Post-employment obligations			(5	)		3			(1	)		19						(32	)		(16	)								(16	)
Materials, outsourced services and others expenses (revenues)			(209	)		(94	)		(14	)		(1,524	)		(48	)		(117	)		(2,006	)					57			(1,949	)
Depreciation and amortization			(254	)		(3	)		(1	)		(683	)		(90	)		(18	)		(1,049	)								(1,049	)
Operating provisions and impairment			(20	)		(12	)		(14	)		(198	)		(6	)		(114	)		(364	)								(364	)
Construction costs						(184	)	-				(1,802	)		(50	)	-				(2,036	)								(2,036	)
Total operating costs			(651	)		(419	)		(53	)		(5,129	)		(250	)		(343	)		(6,845	)					57			(6,788	)

OPERATING COSTS AND EXPENSES			(1,446	)		(419	)		(5,788	)		(19,982	)		(2,261	)		(343	)		(30,239	)		1,575			427			(28,237	)

Periodic Tariff Revision, net						215															215									215
Renegotiation of hydrological risk (Law 14,052/20), net			1,032																		1,032									1,032
Gains arising from the sale of non-current asset held for sale																		109			109									109
Equity in earnings of unconsolidated investees, net			54															128			182									182
Fair value of business combination						4															4									4

OPERATING INCOME BEFORE FINANCE INCOME (EXPENSES)			2,561			894			642			2,363			591			(100	)		6,951									6,951
Finance net income (expenses)			(758	)		(395	)		15			(7	)		(89	)		(1,018	)		(2,252	)								(2,252	)
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION TAX			1,803			499			657			2,356			502			(1,118	)		4,699									4,699
Income tax and social contribution tax			(409	)		(78	)		(224	)		(655	)		(142	)		562			(946	)								(946	)
NET INCOME FOR THE YEAR			1,394			421			433			1,701			360			(556	)		3,753									3,753
Equity holders of the parent			1,394			421			433			1,701			358			(556	)		3,751									3,751
Non-controlling interests															2						2									2

(1)

The only inter-segment transactions are from the generation to the trading segment, as explained above.

(2)

Refers to the reconciliation between our statements of income to our segments information evaluated by CODM, which is necessary to made adjustments (eliminations) related to intercompany transactions..

(3)

The information on operational costs and expenses separated by type is segregated in accordance with the internal business model, which has immaterial differences in relation to the accounting information.

The information for assets and liabilities by segment is not presented, because this is not part of the information made available to the Company’s Chief Operating Decision Maker (‘CODM’).

The operating results of all operating segments for which discrete financial information is available, are reviewed regularly by the Company’s CODM, to make decisions about resources to be allocated to the segment, and to assess its performance.

Segment results that are reported to the Company’s CODM include items directly attributable to the segment, as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and head office expenses.