Who we are

Transmission

Digital transformation

What to expect from Equatorial

Piauí and Alagoas

Who we are

Who weare

A successful

platform for utility

investments22%

% National territory

DISTRIBUTION

Maranhão

Pará

Piauí

Alagoas

TRANSMISSION OTHERS

Geramar

55 Soluções

Sol Energias

* 2Q19 Information (12 months)

1,161

3,968

7,5352,593

11,473

21,797*

2004 2012 2019

Custumers Billed volume (GWh)

SPVs

Intesa

6%

Contract

9%

Number ofcustumers

Until 2016 After 2021

Revenues (R$ MM)

Km of Grid3.281

1.087

Piauí and Alagoas will have their Tariff Reviews in Dec/19 and May/20, respectively

NumbersEQUATORIAL IN

Net Regulatory Base(R$ MM)

8251.121

2.069

3.309

2017201320092005

1.472

3.090

5.047

201920152011

Transmission

RevenuesTotal and operational(R$mn)

CEMAR CELPA

Cash/ ST Debt

2,2 x

Leverage(ND / 12m EBITDA)

3,6 x

1.081

Jun/19

168

Net Debt

9,9 bn

Achievements2018-2019

Transmission100%Long term funding

secured

Tax Incentive

10 of 11 Companies

Aquisition of Piauí,

Alagoas e Intesa (49%)

Greenfield construction

started

Maranhão and

ParáOn the GPTW rank

Maranhão and

Pará

Between the best on the

continuity rank

DifferentWHAT MAKES US

meritocracy People who take on challenges,

do their best and get rewarded

for results.

results We are oriented to get results,

set and achieve challenging goals

personnel The greatest asset of the

company is Competent

People, Engaged and Working

as a Team

leadership Inspirational,

responsible leadership

that takes on its role

High performance

culture

Management model

Financial Discipline

Operational efficiency

Turnaround model

Dividend history(R$ MM) Celpa’s Acquisition and turnaround

start point

0

100

200

300

400

500

600

700

800

900

1,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Payout 95% 27% 26% 26% 25% 25%106% 26% 100% 33% 25%90% 25%

M&A preparation Investments in transmission,

Piauí and Alagoas

Parcel A mismatch and credit crunch in Brazil

4.6%5.6%

8.5%9.5%

8.5%8.0%

7.5%7.0% 6.6%

6.0% 5.6%5.0%

Regulatory Wacc

7

13

7

13

7

29

20 2124 23

35

26 2624 24

35

11

20

13

0 0 0 0 0 1 02 1

3

1012

17

10

3 4

0 0 0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016.1 2016.2 2017.1 2017.2 2018.1 2018.2

39% 38% 43% 40%55% 13% 24% 40% 28% 26% 22% 12% 12% 3% 12% 36% ¹50% 55% 46%Discount over max

revenue

Equatorial studies but

doesn’t participate

Equatorial wins

8 lots

# of lots

# of empty lots

Dvidend Adj. Net revenues

Auction history

DifferentWHAT MAKES US

Management model

Financial Discipline

Operational efficiency

Turnaround model

PMSO Outperformance

126 129 126 139 171

245 291

321 367 346

397 436 415 437

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

656

535

450 473434

497 492

2012 2013 2014 2015 2016 2017 2018

CEMAR CELPA

DifferentWHAT MAKES US

Manageable

ExpensesManageable

Expenses

Regulatory

Expenses

Regulatory

Expenses

Management model

Financial Discipline

Operational efficiency

Turnaround model

turnaroundMODEL

DifferentWHAT MAKES US

Implementation of the new corporate culture

Regulation as a key element of strategy

Raise support to all stakeholders

Human Capital(attraction, retention, training and meritocracy)

Reinvention

Organic Growth

Continuous pursuit of productivity and operational excellence

Continuity

Optimize capital structure

Investment for reinforcement and modernization of the grid

Simplify organizational structure and optimize processes (strict cost control, collection and loss reduction)

Restructuring

Management model

Financial Discipline

Operational efficiency

Turnaround model

784 757

85189

341 379 416 470 512 505 559

368287

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

681

1.0601.176

1.445

1.817

1.858

Value Generation

CEMAR

Acquisition

IPO EQTL

Sell of Light

Shares

Acquisition of ¼

of Geramar

Light acquisition of

shared control

CELPA

Acquisitioin

2016/17: Acquisition of 8

Transmission projects

+

51% of Intesa

Acquisition of

Ceal, Cepisa

and 49% da

Intesa

5.1Mar 31,2006

On long term through the turnaround of the

operations and efficient Capital Allocation

ADTV30: R$ 133 million

EBITDA CAGR

(2004-2018):

+24,6%

EBITDA EQTL EBITDA Light Share price

99,02Sep 11, 2019

new structure

EQUATORIAL’s

CEO

President

Director

Superintendent

Corporativemanager

Organization of corporate functions to boost the Group's growth.

HIERARCHY

LEVELS

CEO

AdministrationCouncil

Transmission DistributionPresident’s ofthe distributors

Regulatorystrategy and

New Business

Services

Internal Audit

Legal & compliance

Investor Relations

Finance People Shared Services

Reinforced areas:

M&A Shared servicesDigital (Customers)

new architectureOf the group’s image

A Equatorial brand strengthening

and repositioning in the

distribution segment, which will

have the same identity as

Equatorial

Transmission TradingServices GenerationDistribution

Equatorial Maranhão ( EQTL MA)

Equatorial Pará ( EQTL PA)

Equatorial Piauí ( EQTL PI)

Equatorial Alagoas (EQTL AL)

New IRNew delivery

✓ Market interaction increase (internal and external)

✓ Reformulation of material

✓ Data sheet sharing

✓ Team reinforcement

✓ New IR Site

CompanyGrowth

New segments

Increase in IR service

complexity

Investor’s

interaction

Perception

Study

Feedback Investors

Day

II Ranking

New Environment

New demands

IR

turnarounds Equatorial Alagoas and

Piauí

PMSO / consumer (R$, 2018)

Piauí AlagoasPiauí + Alagoas Maranhão

1,227 1,157 2,384

91,765 47,788 139,553

3,610 3,546 7,156

28% 25% 17% -

419 360 779 608

2,359

123,033

6,203

Consumers (in thousand)

Grid (Km)

Contract (GWh)

Losses

Regulatory PMSO (R$ Mn)

Alagoas AND

EQUATORIAL

NEW TURNAROUNDS

Piauí

Maranhão Piauí Alagoas COELCE

175325 300

165

Tax Incentive

PA MA

PIAL

100daysPLANPIAUÍ AND ALAGOAS

2.719

Plan’s total actions

Total evolution

97,0%

24/06/2018Pre-Possession

Actions

18/10/2018 Post PossessionActions

Begining

2.033 91,9%

25/12/2018 Pre-PossessionActions

18/03/2019 Post PossessionActions

Piauí

Alagoas

Main topics covered in the 100-day Plan

PeopleInstitutionalimage

Contractrevision

Systems andprocesses

Regulatorymanagement

Funding and debtmanagement

Operationalefficiency

31.8

19.3

Alagoas Piauí Contract negotiation

Notice to the market. Single

Vendor Selection

100% contract

renegotiation

Anchor contract

In addition to the anchor contracts we

managed to save R$ 53,8 Mn in both

companies

By hiring Anchor Companies for field services we doubled the field workforce (896 vs 431 teams) with savings of $ 21.6 million for the operations of

Piauí and Alagoas

CONTRACT REVISION

197

367

234

529

30.7

21.5

- 64%Cost (R$

Mn)

Before After Before After

- 42%

86%

Before After Before After

126%# of teams

Anchor

contracts

# of teams

Cost (R$

Mn)

Piauí and Alagoas

processingSYSTEMS AND

Call Center Migration to 55 Solutions

Implementation of systems

ERP (AL)

Charging system

Georeferencing System

HR system

Field Billing and Reading System

Phoning system(PI)

Security system(PI)

Reversal of Convictions (R$ 75 MM)

Establishment of weekly follow-ups

Process Restructuring

New equipments and instalations

Real time monitoring

Piauí Alagoas

Delivery

Approach with the Press / Society

Visits to Strategic Publics (Government, Business, Justice and Press)

Brand Strengthening

Emergency plans for special dates (elections, carnival, new year ...)

Lamps and Refrigerators Exchange

Negotiations and field actions

Piauí and Alagoas

instituB r a n d S t r e n g t h e n i n g

tional

Piauí

67 6480

41

81

126

5456

67

54

20 20

Janeiro Fevereiro Março Abril Maio Junho

Good News x Bad News

Positivas Negativas

60 54 49

127159

39 38

52

Abril Maio Junho julho

Good News x Bad News

Alagoas

Positivas Negativas

Piauí and Alagoas

institutional

B r a n d S t r e n g t h e n i n g

Approach with the Press / Society

Visits to Strategic Publics (Government, Business, Justice and Press)

Brand Strengthening

Emergency plans for special dates (elections, carnival, new year ...)

Lamps and Refrigerators Exchange

Negotiations and field actions

Brand

Strengthening

AlagoasPiauíP I A U Í A N D A L A G O A S

Med ias Elevators

Radio

Magazines

LRV’s Doors

Backbus

Paper Ads

TV

Outdoors

Social Networks

Thermovision, maintenance and retrofit Line intervention

002 C882664 A P2 001 DESP LV

REG.003 REG.004

Evidência da Execução

Fase(s)

Registro do cenário antes Registro do cenário depois

ITEM Insp Quantid. Classe EquipeCÓDIGO Serviço realizado Informação adicional Nº Poste Prioridade

CN11 Substituir conexão paralelo para

cunha.Em_N1XN3_4/0.CAA

Tree pruning / component maintenance / loop automation mapping

HIGH, MEDIUM AND

LOW VOLTAGE

Thorough and

thermographic inspection,

Preventive and

Corrective Maintenance

in feeders and network.

SUBSTATIONS AND

SUBTRANSMISSION LINES

Thorough and thermographic

inspection, Preventive and

Corrective Maintenance:

Piauí

38 lines

90 substations

Alagoas

87 lines

32 subsations

M A I N T E N A N C E O F T H E

high, medium and low voltage

E Q U A T O R I A L P I A U Í Technical operational efficiency

P I A U Í A N D A L A G O A SCommercial and operational efficiency

289

307

# of Customers with Social Rate (Low Income)Largest Increase of Low Income Registrations at Equatorial base, with an increase potential of

over 207 thousand

Nº de

Clientes

2018

(Mil)162

269

mai/19 AtualAtual

PI AL

Crescimento

de 58,75% da

Base

Crescimento

de 16,2% da

Base

R$ 29 MM / year more subsidies for the Equatorial Group

Government AgreementFor low income registration

Client monitoringsoftwares and field trip

Non read clientes reductionPiauí and Alagoas

High and Low Voltage

regularization

Public Iluminationre-registration

Piauí and Alagoas

operaR E S U LT S

tional

Piauí

1,85 pp

98,7100,6

jan a jul de 2018 jan a jul de 2019

IAR

Alagoas

97,7101,8

jan a jul de 2018 jan a jul de 2019

4,11 pp

IAR

28,527,8

1º TRI 2º TRI

Energy

losses

DEC FEC

9.75.8

1º tri 2º tri

4.22.5

1º tri 2º tri

-40,2% -40,5%

DEC FEC

12,67,1

1º tri 2º tri

3,83,0

1º tri 2º tri

-43,7% -21,1%

1S18 1S19

1S18 1S19

1Q 2Q 1Q 2Q

1Q 2Q 1Q 2Q

Piauí

539

136

1S18 1S19

Adj. PMSO

-110

65

1S18 1S19

Adj. EBITDA

1S19

-75%

Alagoas

Adj. EBITDA Adj. PMSO

-122

59

1S18 1S19

110

76

1S18 1S19

2Q19

financialRESULTS

-31%

2Q18

2Q192Q18

TransmissionEvolution

ConstructionSPEs (%)

86

78

113

205

95

117

99

138

RevenueANEELdate

feb/22

feb/22

feb/22

feb/22

feb/22

feb/22

feb/22

jul/22

works

32

71.6

34.1

0

10.3

23.7

5.6

52.4

58.4

TOTAL

SPE 8

SPE 7

SPE 6

SPE 5

SPE 4

SPE 3

SPE 2

SPE 1

931

funding Source Secured Disbursed %

SPV 1 Banco do Nordeste 343 288

Debentures 55 55

Total 398 343 86%

SPV 2 Banco do Nordeste 353 150

Debentures 45 45

Total 398 195 49%

SPV 3 Banco do Nordeste 425 179

Debentures 90 90

Total 515 269 52%

SPV 4 BNDES 822 490 60%

SPV 5 Banco do Nordeste 356 79

Debentures 66 66

Total 422 145 34%

SPV 6 BNDES 419 40 10%

SPV 7 FDA 293 -

Debentures 130 130

Total 423 130 31%

SPE 8 FDA 495 -

Debentures 189 189

Total 684 189 28%

Total Equatorial Transmissão 4.081 1.801 44%

100%Secured

44%Obtained

Mediun leverage

80%

TransmissionOperations Center

transmission

U P D A T E SThe operations center can operate twice as many operating points as current assets

IN OPERATION IN CONSTRUCTION

SynchronousCondenser(SPE 08)Comercial Operation:

June 2019.

RAP: R$ 18 mm

SPV 08 was the last lot

acquired by Equatorial and

the first to enter into partial

commercial operation

Digital Transformation

In four months:

V I R T U A L

A S S I S TA N T

Clara is the first initiative of its nature in

the electricity sector. It is already able to

offer the services of

2 via, Payment Code, Debt Inquiry,

Reporting Power Failure and

Reconnection via WhatsApp

These are the most sought after

services in our service channels.

More than 65,000

customers have talked

to Clara

Over 15,000 orders

have been fulfilled

Unproductive calls

reduction:

Compared to other

channels, Clara is 60%

more effective in

combating unproductive

CLARA

26 67 80197

339

264

443

523

1310

1777

Abril Maio Junho Julho Agosto

Generatedservices

Call Center(month)

Clara(month)

110.000 2.400

Service time

URA + employee

(min)

Clara(min)

4,2 4,0

Cost per call

Call Center Clara

R$ 1,92 R$ 0,52

numbersCLARA IN

sLack of energyopening

Clients calling the Call Center

Number of clientes using Clara

84%Call Retention Average for Call Center

Reduction on calls to Call

Center till 2020

Cost reduction (in R$

mN)

projectGOALS

je

12%

4,3MM

IDEASN E W

Digital and

Innovation

Management

Business

areas

New

technologies

Group needs

Market

Electric

Sector

ANEEL

New

Business

Communication

Innovation can come

from anywhere

We always encouraged innovation,

but our initiatives were scattered

across our different departments.

Digital and Innovation

Management was created to

oversee, better communicate and

direct these initiatives to the latent

needs of the Group, with a view to

macro, not just micro.

R&D PROJECTS

IN PROGRESS39

DRONES AND MACHINE LEARNING

Machine Learning application

for management of mutual

use Telecom and IP in the

power distribution network.

Application of Machine Learning

techniques for Network Inspection and

Distribution elements up to 138KV.

AUGMENTED REALITY

Electrical System

Maintenance and Operation

Support System using

Augmented Reality and

biometric monitoring.

SMART SENSORS

Dynamic Monitoring of

EPI's / EPC's Use in the

Field Using Biometrics

Techniques.

INTERNET OF GRIDS

Internet of Grids - IoG: The

Internet of Things concept

applied to the electrical

distribution system

BIG DATA FORECASTING

Computational intelligence to

identify consumers'

predisposition to prosecution.

A.I.

Auto-read power

consumption with periodic

self-audit based on image

processing.

Distribution Transformer Tracking System

Using Electronic Label and Communication

Network Based on LORA Technology

The Equatorial Group has already

begun its path to Digital

Transformation by reviewing how

to see and seize opportunities

MIND

C H A N G E

SET

RPA projectsROBOTIC PROCESS AUTOMATION

Project goals:

Mappedprocesses

Automatizedprocesses:

12

RESULTS

Earlier cash inflow

Increase in productivity

Time reduction

Informationsecurity

Customersatisfaction

Cost reduction goal

25

R$ 2,8MM

jurídicoTRANSFORMAÇÃO DO 4.0Legal

AUTOMATIZATION

Information extraction directly from databases, automatic

data crossing, scheduled update and SQL queries

BUSINESS INTELLIGENCE

Data collection, organization, analysis, action and monitoring to

make better decisions in the process management and

contingency use.

LEGAL INFORMATION

Data centralization, workflow standardization, providing fast processing of demands

DATA SCIENCE

Use of scientific methods, processes, algorithms and systems to extract knowledge and insights from databases.

MACHINE LEARNING

Implementation of artificial intelligence techniques to find patterns in consumers, with analysis of business and legal data.

LegalTRANSFORMATION

Economy with third party

services for legal routinesR$ 2mn/yr

Contingency gains Partial scenario only:

R$ 1mn/yr

Reports

automatization

IA for prediction of

judicial actions

Contingency gainsparcial gains:

R$ 1mn/yr

BI and Jurimetry

Assertiveness gains

Quality

What to expectfrom Equatorial

Strategical themes

Long term ambitions

per segment

Strategic goals

Quality

indicators

StrategicalPlan

V I S I O NFUTURE

Sectoral

attractiveness

Targets M&A

Valuation

Funding and

debt

assumptions

Capital allocationmatrix

Segment sizeResults

Stock price

Thank you