ENGIE Brasil Energia

With registered offices in the city of Florianópolis (SC), ENGIE Brasil Energia operates in the generation as well as the commercialization of electric energy. In the generation segment, it installs and operates plants fired from conventional energy sources such as hydroelectric, thermoelectric and complementary units — small hydroelectric plants and wind, biomass and photovoltaic plants. In 2016, the Company also made its debut in the distributed generation segment. In the commercialization area, ENGIE Brasil Energia buys and sells conventional and incentivized energy, its clients being located throughout the country. GRI G4-3; G4-4; G4-5

At the end of 2016, ENGIE Brasil Energia’s capital stock stood at R$ 2,829.1 million with a total of 652,742,192 common shares trading regularly on the BM&FBovespa - Securities, Commodities and Futures Exchange. The Company also trades Level 1 American Depositary Receipts (ADRs) in the American over-the-counter market under the EGIEY symbol with a ratio of one ADR for each common share.

The Controlling Company

Present in Brazil since 1998, the year in which it acquired Gerasul, ENGIE Brasil Energia is controlled by ENGIE, a company with operations in some 70 countries across five continents and a world leader in independent energy production. Electricity, natural gas and services are the principal operational pillars supporting ENGIE, which through ENGIE Brasil Participações Ltda., holds 68.71% of the Company. GRI G4-6; GRI G4-7; GRI G4-8

ENGIE’s activities are focused on sustainable development as a means of meeting the challenges of the energy transition to a low carbon economy: access to renewable energy, mitigation of and adaptation to climate change, security of supply and the rational use of natural resources. To this end, the Company seeks to offer innovative solutions to people, cities and companies.

Having the generation of long-term value in both consolidated and emerging markets as an underlying principle, ENGIE has established two key strategic objectives on a global basis:

1. To become a bellwether in energy services in emerging market countries through:

• leveraging its strong positions in independent energy production;

• development of its footprint in the gas value chain; and

• globalization of its position of leadership in energy services.

2. To lead the energy transition in Europe with the following aspirations:

• to become the partner in energy for its clients, incentivizing energy efficiency;

• to be an element in the process of energy decarbonization through renewable sources; and

• to develop new businesses and digitization.

Corporate structure

As the following infographic shows, ENGIE Brasil Energia controls subsidiaries and maintains stakes in concession consortia of plants in its generating complex. On making its debut in the distributed solar generation market in 2016, the Company created ENGIE Geração Distribuída, a subsidiary with a focus on decentralized solar generation in residences and companies.