Completion of the acquisition and consolidation of the Baguari HPP - Form 6-K

Completion of the acquisition and consolidation of the Baguari HPP

Rio de Janeiro, October 17, 2023, Centrais Elétricas Brasileiras S/A - Eletrobras, in addition to the market announcements disclosed on April 14, 2023 and May 31, 2023, informs that, after the implementation of the conditions precedent, it has concluded, on October 16, 2023, the consolidation of 100% of the Baguari HPP. The transaction, concluded in two stages, totals R$ 875 million.

The Baguari HPP has an installed capacity of 140 MW and a physical guarantee of 82 MWm, with a concession contract until March 2046. The asset has contracts in the regulated environment (ACR) for about 90% of its physical guarantee, until the end of 2039, at a value of R$ 305/MWh (current value). Baguari also has GSF SP 97 insurance, contributing to greater cash flow predictability. In the second quarter of 2023, Baguari HPP companies had net cash of R$ 88 million.

Eletrobras now consolidates 100% of the share capital of Baguari I Geração de Energia S.A. (Baguari I) and Baguari Energia S.A. (Baguari Energia), which together make up the Baguari Consórcio, which operates the Baguari HPP, aggregating an EBITDA of approximately R$ 126 million (2022).

Figure 1 - Corporate Structure Before and After Transaction Completion

About the transaction

The first stage of the transaction, on October 6, 2023, Furnas Centrais Elétricas S.A. (Furnas), acquired Cemig Geração e Transmissão S.A.'s stake in Baguari Energia, now a wholly-owned subsidiary of Furnas. The amount paid to Cemig GT was R$ 421 million, including the respective adjustments.

In the second stage, Baguari Energia today acquired Baguari I from Neoenergia S.A. for R$ 454 million, already considering the respective adjustments.

The operations reinforce Eletrobras' commitment to the rationalization of its equity interests and simplification of its structure as provided for in its Strategic Plan, reinforcing its leadership in renewables.

Eduardo Haiama

Vice President of Finance and Investor Relations

This document may contain estimates and projections that are not statements of fact that have occurred in the past, but reflect the beliefs and expectations of our management and may constitute estimates and projections about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words "believes", "may", "may", "estimate", "continue", "anticipates", "intends", "hopes"and similar ones aim to identify estimates that necessarily involve risks and uncertainties, known or not. Known risks and uncertainties include, but are not limited to: general economic, regulatory, political and commercial conditions in Brazil and abroad, variations in interest rates, inflation and the value of the Brazilian Real, changes in volumes and patterns of consumer use of electricity, competitive conditions, our level of indebtedness, the possibility of receiving payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric plants, our financing and capital investment plans, existing and future government regulations, and other risks described in our annual report and other documents filed with the SEC. Estimates and projections speak only as of the date on which they were expressed and we undertake no obligation to update any such estimates or projections due to the occurrence of new information or upcoming events. The future results of the Companies' operations and initiatives may differ from current expectations and the investor should not rely solely on the information contained herein. This material contains calculations that may not reflect accurate results due to rounding performed.

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