AES Tietê Energia S.A. and Subsidiaries

Transcription

1 AES Tietê Energia S.A. and Subsidiaries Quarterly Financial Information (IIQ) June 30, 2017 With Independent Auditor s Review Report on Quarterly Information

2 A free translation from Portuguese into English of Independent Auditor s Review Report on individual and consolidated interim financial information prepared in Brazilian currency in accordance with accounting practices adopted in Brazil, International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and specific CVM standards. INDEPENDENT AUDITOR S REVIEW REPORT ON QUARTERLY INFORMATION The Shareholders, Board of Directors and Officers AES Tietê Energia S.A. Barueri - SP Introduction We have reviewed the individual and consolidated interim financial information of AES Tietê Energia S.A. ( Company ), contained in the Quarterly Information Form (ITR) for the quarter ended June 30, 2017, which comprises the statement of financial position as of June 30, 2017 and the related statements of profit or loss, and of comprehensive income for the three-month and sixmonth period ended on June 30,2017, and changes in equity and cash flow statement for the six month period then ended, including other explanatory information. Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with Accounting Pronouncement CPC 21 (R1) Interim Financial Reporting, and with IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the fair presentation of this information in conformity with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of Quarterly Financial Information. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR 2410 and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the interim financial information Based on our review, nothing has come to our attention that causes us to believe that the individual and consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34

3 applicable to the preparation of Quarterly Information, and presented consistently with the standards issued by the Brazilian Securities and Exchange Commission. Other matters Statement of value added We also reviewed the statement of value added (SVA), individual and consolidated for the sixmonth period ended June 30, 2017, prepared under the responsibility of Company management, whose presentation in the interim financial information is required by the standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to preparation of Quarterly Financial Information (ITR). This statement was submitted to the same review procedures previously described and, based on our review, we are not aware of any fact that would make us believe that it was not prepared, in all material respects, in accordance with the overall individual and consolidated interim financial information. São Paulo (SP), August 7, 2017 ERNST & YOUNG Auditores Independentes S.S. CRC-2SP015199/O-6 Marcos Antonio Quintanilha Accountant CRC- 1SP132776/O-3

4 Contents Company s information Capital Structure 1 Cash Dividends 2 Individual Financial Statements Statement of Financial Position - Assets 3 Statement of Financial Position - Liabilities 4 Statement of Profit and Loss 5 Statements of Comprehensive Income 6 Statements of Cash Flows 7 Statements of Changes in Shareholders Equity From 01/01/2017 to 06/30/ From 01/01/2016 to 06/30/ Statements of Value Added 10 Consolidated Financial Statements Statement of Financial Position - Assets 11 Statement of Financial Position - Liabilities 12 Statement of Profit and Loss 13 Statements of Comprehensive Income 14 Statements of Cash Flows 15 Statements of Changes in Shareholders Equity From 01/01/2017 to 06/30/ From 01/01/2016 to 06/30/ Statements of Value Added 18 Comments on Company s Performance 19 Exploratory Notes 25 Comments on Business Projections Behavior 82 Reports and Statements Independent Auditors Review Report - No Qualifications 85 Directors Statement on Financial Statements 87 Directors Statement on Auditors Review Report 88

5 Company information/capital structure Number of shares Current Quarter (in thousands) 06/30/2017 Paid in capital Common 775,175 Preferred 1,192,210 Total 1,967,385 Treasury shares Common - Preferred - Total - Page 1 of 88

6 Company s information/cash dividends Event Approval Ernings Beginning Payment on Type Class of Shares Amount per Share (Reais/Share) Annual Shareholders' Meeting 04/20/2017 Dividends 05/25/2017 Common Annual Shareholders' Meeting 04/20/2017 Dividends 05/25/2017 Preferred Annual Shareholders' Meeting 04/20/2017 Interest on shareholders equity 05/25/2017 Common Annual Shareholders' Meeting 04/20/2017 Interest on shareholders equity 05/25/2017 Preferred Board of Directors Meeting 05/05/2017 Dividends 05/25/2017 Common Board of Directors Meeting 05/05/2017 Dividends 05/25/2017 Preferred Page 2 of 88

7 A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil and International Financial Reporting Standards - IFRS Individual/Statement of Financial Position Assets (In thousands of Reais) Code Description Current Quarter Prior Year 06/30/ /31/ Total Assets 5,148,969 4,099, Current Assets 1,864, , Cash and Cash Equivalents 200,389 72, Short-Term Investments 1,379, , Short-Term Investments Valued at Fair Value 1,379, , Available for Sale 1,379, , Accounts Receivable 231, , Customers 231, , Consumers, concessionaires 231, , Other Accounts Receivable - 4, Accounts Receivable from Related Parties - 4, Recoverable Taxes 44,464 44, Recoverable Current Taxes 44,464 44, Recoverable Income Tax and Social Contribution 43,835 23, Other Recoverable Taxes , Prepaid Expenses 5, Other Current Assets 4,447 2, Others 4,447 2, Unrealized Gain on Hedge Operations 1, Other credits 3,387 2, Non-Current Assets 3,284,427 3,323, Long-Term Assets 169, , Accounts Receivable 13,075 13, Customers 13,075 13, Deferred taxes 150, , Recoverable taxes 150, , Other Non-Current Assets 5,832 5, Guarantees and Judicial Deposits 4,726 4, Other Recoverable Taxes Unrealized Gain on Hedge Operations Other Credits Investments 4, Investments in Subsidiaries 4, Investments in Subsidiaries 4, Property, Plant and Equipment 3,064,947 3,089, Property, Plant and Equipment - Operating 2,954,378 2,946, Property, Plant and Equipment - In service 2,957,060 2,949, Special obligations (4,781) (4,781) Real Properties for Future Use 2,099 2, Finance Lease Agreements Construction in Progress 109, , Intangible 45,918 55, Intangible Assets 45,918 55, Use of public assets 33,639 34, Other Intangibles 12,279 20,878 Page 3 of 88

8 Individual Financial Information/Statement of Financial Position Liabilities (In thousands of Reais) Code Description Current Quarter Prior Year 06/30/ /31/ Total Liabilities 5,148,969 4,099, Current Liabilities 1,494, , Social and Labor Obligations 22,112 22, Labor and Social Liabilities 22,112 22, Trade Accounts Payable 439, , Local Suppliers 439, , Tax Liabilities 91,402 63, Federal Tax Liabilities 88,341 61, Income Tax and Social Contribution Payable 81,041 49, Other Taxes Payable 7,300 11, State Tax Liabilities 2,822 1, Municipal Tax Liabilities Loans and Financing 918, , Loans and Financing 899, In National Currency 899, Debentures 18, , Finance Lease Other Liabilities 21,985 73, Others 21,985 73, Dividends and Interest on Shareholders Equity Payable 1,493 52, Sectorial Charges 13,962 18, Environmental Liabilities 1,609 1, Other Liabilities 4, Provisions 1,165 1, Provision for Fiscal, Labor and Civil Contingencies 1,165 1, Provision for Legal Proceedings and Others 1,165 1, Non-Current Liabilities 2,026,115 1,693, Loans and Financing 1,494,596 1,190, Debentures 1,494,285 1,190, Finance Lease Other Liabilities 39,990 36, Others 39,990 36, Pension Plan 9,067 7, Sectorial Charges 16,589 16, Labor and Social Contributions Environmental Liabilities 8,783 8, Other Liabilities 5,250 3, Deferred Taxes 416, , Deferred Income Tax and Social Contribution 416, , Provisions 74,737 72, Provision for Fiscal, Labor and Civil Contingencies 74,737 72, Provision for Legal Proceedings and Others 74,737 72, Shareholders' Equity 1,628,360 1,578, Paid in Capital 416, , Capital Reserve 198, , Special Goodwill Reserve on Merger 186, , Stock Options Granted 2,229 2, Interest on Construction in Progress 9,405 9, Income Reserves 73, , Legal Reserve 73,425 73, Minimum Mandatory Dividend - Additional - 34, Retained Earnings/Loss 112, Equity Valuation Adjustment 830, , Other Comprehensive Income (2,290) (3,289) Actuarial Valuation Adjustment (3,289) (3,289) Cash Flow Hedge Page 4 of 88

9 Individual/Statement of Profit and Loss (In thousands of Reais) Code Description Current Quarter Accumulated of Current Year Same Quarter of Prior Year Accumulated of Prior Year 04/01/2017 to 06/30/ /01/2017 to 06/30/ /01/2016 to 06/30/ /01/2016 to 06/30/ Revenue From Sales and/or Services Rendered 397, , , , Cost of Goods Sold and/or Services Rendered (224,800) (406,088) (208,335) (455,180) Electricity Purchased for Resale (68,302) (111,370) (75,475) (173,514) Charge for Use of Transmission and Distribution System (29,481) (59,239) (25,381) (55,295) Inspection Charge - ANEEL (1,695) (3,390) (1,684) (3,429) Compensation for Use of Water Resources (11,995) (25,732) (18,797) (41,752) Personnel and Management Compensation (28,540) (54,926) (23,916) (46,623) Private Pension Plan Entity (1,055) (2,134) 213 (313) Third-party Services (20,414) (37,447) (18,068) (39,395) Material (4,089) (6,396) (1,841) (3,765) Allowance for Doubtful Accounts (1,083) (5,371) Provision for Legal Proceedings and Others, Net (298) (241) (958) (1,437) Depreciation and Amortization (41,158) (78,294) (38,052) (80,815) Other Income and Expenses (16,690) (21,548) (4,376) (8,842) 3.03 Gross Income 172, , , , Earning Before Financial Results and Taxes 172, , , , Finance Results (31,181) (62,909) (47,788) (71,204) Finance Income 19,437 38,937 21,883 45, Finance Expenses (50,618) (101,846) (69,671) (117,135) Finance Expenses (48,771) (101,196) (74,384) (126,439) Net Monetary Foreign (1,847) (650) 4,713 9, Income Before Taxes 140, , , , Income Tax and Social Contribution (50,007) (114,157) (52,830) (91,259) Current (36,437) (82,266) (36,656) (67,442) Deferred (13,570) (31,891) (16,174) (23,817) 3.09 Net Income from Continued Operations 90, , , , Net Income for The Period 90, , , , Earnings per Shares (Reais/Shares) Basic Earnings per Shares ON PN Diluted Earnings per Shares ON PN Page 5 of 88

10 Individual/Statement of Comprehensive Income (In Thousands of Reais) Code Description Current Quarter 04/01/2017 to 06/30/2017 Accumulated of Current Year 01/01/2017 to 06/30/2017 Same Quarter of Prior Year 04/01/2016 to 06/30/2016 Accumulated of Prior Year 01/01/2016 to 06/30/ Net income of the period 90, , , , Other Comprehensive Income: (665) Unrealized (Loss) Gain Originated in the Year (294) 2, Deferred Income Tax and Social Contribution 99 (990) Gains Realized on Cash Flow Hedge Operations Originated in the Period (713) (1,396) Deferred Income Tax and Social Contribution Comprehensive income for the period 90, , , ,570 Page 6 of 88

11 Individual/Statement of Cash Flows Indirect Method (In thousands of Reais) Code Description Accumulated of Current Year 01/01/2017 to 06/30/2017 Accumulated of Prior Year 01/01/2016 to 06/30/ Net Cash Operating Activities 337, , Cash from Operating Activities 414, , Net Income for the Period 216, , Depreciation and Amortization 85,888 79, Amortization of Public Utilities Charge 1,334 1, Monetary and Foreign Exchange Variation , Allowance for Doubtful Accounts 5, Provision for Legal Proceedings and Others, Net 1,898 1, Cost of Loans and Financing (Charges on Debt) 103,290 86, Pension Fund/Health Plan Expense 1, Interest on Short-Term Investments (38,730) (44,255) Deferred Income Tax and Social Contribution 31,891 23, Shares and Stock Options Granted Write-Off of Fixed Assets 4, Equity Pick-up Changes in Assets and Liabilities 47, , Consumers, Concessionaires (89,550) (121,571) Recoverable Income Tax and Social Contribution 1,781 (24,478) Other Recoverable Taxes 20,412 59, Prepaid Expenses (4,457) (4,610) Accounts Receivable from Related Parties 4, , Other Credits (1,359) (1,483) Labor and Social Contributions (12) (745) Trade Accounts Payable 26,149 (11,371) Income and Social Contribution Payable Taxes 82,266 86, Other Taxes Payable 4,931 (7,494) Sectorial charges (3,404) (539) Other Liabilities 5,603 3, Others (124,887) (363,349) Payment of interest (debt charges) - net of capitalized interest (72,414) (82,509) Payment of income taxes and social contribution (69,030) (325,362) Payment of pension plan (656) (792) Payment of legal proceedings and others (600) (2,285) Interest collected from short-term investments 17,813 47, Net Cash of Investing Activities (916,849) 338, Acquisition of Fixed Asset/Intangible Assets Items (55,675) (57,973) Capital Increase in Subsidiary (5,000) Purchase of Short-Term Investments (2,065,386) (2,602,951) Sale of Short-Term Investments 1,209,155 3,000, Purchase/Sale of Guarantees and Judicial Deposits 57 (416) 6.03 Net Cash Financing Activities 707,846 (556,819) New Loans and Debentures 1,900, Dividends and Interest on Shareholders' Equity Paid (218,924) (552,805) Income Tax on Interest on Shareholders' Equity (8,754) Payment of Loans and Debentures (Principal) (946,742) Cost of loans and debentures (Transaction costs) (17,536) (3,836) Payment for capital leasing (198) (178) 6.05 Increase (Reduction) in Cash and Cash Equivalents 128, Cash and Cash Equivalents - Beginning Balances 72, Cash and Cash Equivalents - Closing Balances 200, Page 7 of 88

12 Individual/Statements of changes in shareholders' equity - 01/01/2017 to 06/30/2017 (In thousands of Reais) Code Description Paid in capital Capital reserve, Granted Options and Treasury Shares Income reserves Retained earnings Other comprehensive income Shareholders' equity Total 5.01 Beginning Balances 416, , , ,428 1,578, Adjusted Beginning Balances 416, , , ,428 1,578, Shareholders' Capital Transactions (34,528) (133,320) - (167,716) Share-based Payments Additional Dividends to the Minimum Mandatory - - (34,528) - - (34,528) Interim Dividends - - (133,320) - (133,320) 5.05 Total Comprehensive Income , , Net Income for the Period , , Other Comprehensive Results Cash Flow Hedge ,514 1, Income Tax and Social Contribution on Cash Flow Hedge (515) (515) 5.06 Internal Changes in Shareholders' Equity Accounts ,647 (28,647) Realization of Revaluation Reserve ,405 (43,405) Taxes on Realization of Revaluation Reserve (14,758) 14, Closing Balances 416, ,204 73, , ,780 1,628,360 Page 8 of 88

13 Individual/Statements of changes in shareholders' equity - 01/01/2016 to 06/30/2016 (In thousands of Reais) Code Description Paid in capital Capital reserve, Granted Options and Treasury Shares Income reserves Retained earnings Other comprehensive income Shareholders' equity Total 5.01 Beginning Balances 262, , , ,107 2,018, Adjusted Beginning Balances 262, , , ,107 2,018, Shareholders' Capital Transactions - 80 (428,384) (89,381) - (517,685) Share-based payments Additional dividends to the minimum mandatory (428,384) (428,384) Interim dividends (89,381) (89,381) 5.05 Total Comprehensive Income , , Net Income for the Period , , Internal Changes in Shareholders' Equity Accounts ,474 (30,474) Realization of Revaluation Reserve ,173 (46,173) Taxes on Realization of Revaluation Reserve (15,699) 15, Closing Balances 262, ,633 52, , ,633 1,678,351 Page 9 of 88

14 Individual/Statement of Value Added (In thousands of Reais) Code Description Accumulated of Current Year 01/01/2017 to 06/30/2017 Accumulated of Prior Year 01/01/2016 to 06/30/ Revenues 901, , Sales of Goods, Products and Services 906, , Other Revenues Allowance for Doubtful Accounts (5,371) Supplies Acquired from Third Parties (261,602) (300,289) Cost of Production, Goods and Services (194,561) (247,660) Materials, Energy, Third Party Service and Other (45,978) (43,160) Other (21,063) (9,469) Other Operating Costs (21,063) (9,469) 7.03 Gross Value Added 639, , Retentions (87,222) (80,815) Depreciation, Amortization and Exhaustion (87,222) (80,815) 7.05 Net Value Added 552, , Value Added Received by Transfer 38,299 45, Equity pick-up (638) Finance Income 38,937 45, Total Value Added to Be Distributed 590, , Distribution of Value Added 590, , Personnel 48,320 39, Direct Wages and Salaries 43,798 36, Fringe Benefits 2, F.G.T.S. 2,388 2, Taxes, Fees and Contributions 223, , Federal 207, , State 16,034 14, Municipal Third Party Capital Remuneration 102, , Interest 101, , Rental Shareholders Equity Remuneration 216, , Dividends 133,320 89, Retained Earnings / Losses of the Period 83,658 88,189 Page 10 of 88

15 Consolidated Financial Information/Statement of Financial Position Assets (In thousands of Reais) Code Description Current Quarter Prior Year 06/30/ /31/ Total Assets 5,149,891 4,099, Current Assets 1,869, , Cash and Cash Equivalents 200,467 72, Short-Term Investments 1,383, , Short-Term Investments Valued at Fair Value 1,383, , Available for Sale 1,383, , Accounts Receivable 231, , Customers 231, , Consumers, concessionaires 231, , Other Accounts Receivable - 4, Accounts Receivable from Related Parties - 4, Recoverable Taxes 44,658 44, Recoverable Current Taxes 44,658 44, Recoverable Income Tax and Social Contribution 43,848 23, Other Recoverable Taxes , Prepaid Expenses 5, Other Current Assets 4,456 2, Others 4,456 2, Unrealized Gain on Hedge Operations 1, Other credits 3,396 2, Non-Current Assets 3,280,065 3,323, Long-Term Assets 169, , Accounts Receivable 13,075 13, Customers 13,075 13, Deferred taxes 150, , Recoverable taxes 150, , Other Non-Current Assets 5,832 5, Guarantees and Judicial Deposits 4,726 4, Other Recoverable Taxes Unrealized Gain on Hedge Operations Other Credits Property, Plant and Equipment 3,064,947 3,089, Property, Plant and Equipment - Operating 2,954,378 2,946, Property, Plant and Equipment - In service 2,957,060 2,949, Special obligations (4,781) (4,781) Real Properties for Future Use 2,099 2, Finance Lease Agreements Construction in Progress 109, , Intangible 45,918 55, Intangible Assets 45,918 55, Use of public assets 33,639 34, Other Intangibles 12,279 20,878 Page 11 of 88

16 Consolidated Financial Information/Statement of Financial Position Liabilities (In thousands of Reais) Code Description Current Quarter Prior Year 06/30/ /31/ Total Liabilities 5,149,891 4,099, Current Liabilities 1,495, , Social and Labor Obligations 22,857 22, Labor and Social Liabilities 22,857 22, Trade Accounts Payable 439, , Local Suppliers 439, , Tax Liabilities 91,562 63, Federal Tax Liabilities 88,488 61, Income Tax and Social Contribution Payable 81,041 49, Other Taxes Payable 7,447 11, State Tax Liabilities 2,822 1, Municipal Tax Liabilities Loans and Financing 918, , Loans and Financing 899, In National Currency 899, Debentures 18, , Finance Lease Other Liabilities 22,002 73, Others 22,002 73, Dividends and Interest on Shareholders Equity Payable 1,493 52, Sectorial Charges 13,962 18, Environmental Liabilities 1,609 1, Other Liabilities 4, Provisions 1,165 1, Provision for Fiscal, Labor and Civil Contingencies 1,165 1, Provision for Legal Proceedings and Others 1,165 1, Non-Current Liabilities 2,025,786 1,693, Loans and Financing 1,494,596 1,190, Debentures 1,494,285 1,190, Finance Lease Other Liabilities 39,990 36, Others 39,990 36, Pension Plan 9,067 7, Sectorial Charges 16,589 16, Labor and Social Contributions Environmental Liabilities 8,783 8, Other Liabilities 5,250 3, Deferred Taxes 416, , Deferred Income Tax and Social Contribution 416, , Provisions 74,737 72, Provision for Fiscal, Labor and Civil Contingencies 74,737 72, Provision for Legal Proceedings and Others 74,737 72, Shareholders' Equity 1,628,360 1,578, Paid in Capital 416, , Capital Reserve 198, , Special Goodwill Reserve on Merger 186, , Stock Options Granted 2,229 2, Interest on Construction in Progress 9,405 9, Income Reserves 73, , Legal Reserve 73,425 73, Minimum Mandatory Dividend - Additional - 34, Retained Earnings/Loss 112, Equity Valuation Adjustment 830, , Other Comprehensive Income (2,290) (3,289) Actuarial Valuation Adjustment (3,289) (3,289) Cash Flow Hedge Page 12 of 88

17 Consolidated /Statement of Profit and Loss (In thousands of Reais) Code Description Current Quarter Accumulated of Current Year Same Quarter of Prior Year Accumulated of Prior Year 04/01/2017 to 06/30/ /01/2017 to 06/30/ /01/2016 to 06/30/ /01/2016 to 06/30/ Revenue From Sales and/or Services Rendered 399, , , , Cost of Goods Sold and/or Services Rendered (227,620) (408,908) (208,335) (455,180) Electricity Purchased for Resale (68,302) (111,370) (75,475) (173,514) Charge for Use of Transmission and Distribution System (29,481) (59,239) (25,381) (55,295) Inspection Charge - ANEEL (1,695) (3,390) (1,684) (3,429) Compensation for Use of Water Resources (11,995) (25,732) (18,797) (41,752) Personnel and Management Compensation (30,498) (56,884) (23,916) (46,623) Private Pension Plan Entity (1,066) (2,145) 213 (313) Third-party Services (21,216) (38,249) (18,068) (39,395) Material (4,137) (6,444) (1,841) (3,765) Allowance for Doubtful Accounts (1,083) (5,371) Provision for Legal Proceedings and Others, Net (298) (241) (958) (1,437) Depreciation and Amortization (41,158) (78,294) (38,052) (80,815) Other Income and Expenses (16,691) (21,549) (4,376) (8,842) 3.03 Gross Income 171, , , , Earning Before Financial Results and Taxes 171, , , , Finance Results (31,114) (62,842) (47,788) (71,204) Finance Income 19,506 39,006 21,883 45, Finance Expenses (50,620) (101,848) (69,671) (117,135) Finance Expenses (48,773) (101,198) (74,384) (126,439) Net Monetary Foreign (1,847) (650) 4,713 9, Income Before Taxes 140, , , , Income Tax and Social Contribution (49,679) (113,829) (52,830) (91,259) Current (36,437) (82,266) (36,656) (67,442) Deferred (13,242) (31,563) (16,174) (23,817) 3.09 Net Income from Continued Operations 90, , , , Net Income for The Period 90, , , , Attributable to Equity Holders of the Parent 90, , , , Earnings per Shares (Reais/Shares) Basic Earnings per Shares ON PN Diluted Earnings per Shares ON PN Page 13 of 88

18 Consolidated /Statements of Comprehensive Income (In thousands of Reais) Code Description Current Quarter 04/01/2017 to 06/30/2017 Accumulated of Current Year 01/01/2017 to 06/30/2017 Same Quarter of Prior Year 04/01/2016 to 06/30/2016 Accumulated of Prior Year 01/01/2016 to 06/30/ Net income of the period 90, , , , Other Comprehensive Income: (665) Unrealized (Loss) Gain Originated in the Year (294) 2, Deferred Income Tax and Social Contribution 99 (990) Gains Realized on Cash Flow Hedge Operations Originated in the Period (713) (1,396) Deferred Income Tax and Social Contribution Comprehensive income for the period 90, , , , Attributable to Equity Holders of the Parent 90, , , ,570 Page 14 of 88

19 Consolidated /Statements of Cash Flows Indirect Method (In thousands of Reais) Code Description Accumulated of Current Year 01/01/2017 to 06/30/2017 Accumulated of Prior Year 01/01/2016 to 06/30/ Net Cash Operating Activities 336, , Cash from Operating Activities 413, , Net Income for the Period 216, , Depreciation and Amortization 85,888 79, Amortization of Public Utilities Charge 1,334 1, Monetary and Foreign Exchange Variation , Allowance for Doubtful Accounts 5, Provision for Legal Proceedings and Others, Net 1,898 1, Cost of Loans and Financing (Charges on Debt) 103,290 86, Pension Fund/Health Plan Expense 1, Interest on Short-Term Investments (38,786) (44,255) Deferred Income Tax and Social Contribution 31,563 23, Shares and Stock Options Granted Write-Off of Fixed Assets 4, Changes in Assets and Liabilities 47, , Consumers, Concessionaires (89,550) (121,571) Recoverable Income Tax and Social Contribution 1,781 (24,478) Other Recoverable Taxes 20,237 59, Prepaid Expenses (4,457) (4,610) Accounts Receivable from Related Parties 4, , Other Credits (1,759) (1,483) Labor and Social Contributions 733 (745) Trade Accounts Payable 26,478 (11,371) Income and Social Contribution Payable Taxes 82,266 86, Other Taxes Payable 5,091 (7,494) Sectorial charges (3,404) (539) Other Liabilities 5,620 3, Others (124,888) (363,349) Payment of interest (debt charges) - net of capitalized interest (72,414) (82,509) Payment of income taxes and social contribution (69,036) (325,362) Payment of pension plan (656) (792) Payment of legal proceedings and others (600) (2,285) Interest collected from short-term investments 17,818 47, Net Cash of Investing Activities (916,424) 338, Acquisition of Fixed Asset/Intangible Assets Items (55,675) (57,973) Purchase of Short-Term Investments (2,070,646) (2,602,951) Sale of Short-Term Investments 1,209,840 3,000, Purchase/Sale of Guarantees and Judicial Deposits 57 (416) 6.03 Net Cash Financing Activities 707,846 (556,819) New Loans and Debentures 1,900, Dividends and Interest on Shareholders' Equity Paid (218,924) (552,805) Income Tax on Interest on Shareholders' Equity (8,754) Payment of Loans and Debentures (Principal) (946,742) Cost of loans and debentures (Transaction costs) (17,536) (3,836) Payment for capital leasing (198) (178) 6.05 Increase (Reduction) in Cash and Cash Equivalents 128, Cash and Cash Equivalents - Beginning Balances 72, Cash and Cash Equivalents - Closing Balances 200, Page 15 of 88

20 Consolidated /Statements of changes in shareholders' equity - 01/01/2017 to 06/30/2017 (In thousands of Reais) Code Description Paid in capital Capital reserve, Granted Options and Treasury Shares Income reserves Retained earnings Other comprehensive income Shareholders' equity Total Participation of Non- Controlling Consolidated Shareholders' equity Total 5.01 Beginning Balances 416, , , ,428 1,578,099-1,578, Adjusted Beginning Balances 416, , , ,428 1,578,099-1,578, Shareholders' Capital Transactions (34,528) (133,320) - (167,716) - (167,716) Share-based Payments Additional Dividends to the Minimum Mandatory - - (34,528) - - (34,528) - (34,528) Interim Dividends - - (133,320) - (133,320) - (133,320) 5.05 Total Comprehensive Income , , , Net Income for the Period , , , Other Comprehensive Results Cash Flow Hedge ,514 1,514-1, Income Tax and Social Contribution on Cash Flow Hedge (515) (515) - (515) 5.06 Internal Changes in Shareholders' Equity Accounts ,647 (28,647) Realization of Revaluation Reserve ,405 (43,405) Taxes on Realization of Revaluation Reserve (14,758) 14, Closing Balances 416, ,204 73, , ,780 1,628,360-1,628,360 Page 16 of 88

21 Consolidated /Statements of changes in shareholders' equity - 01/01/2016 to 06/30/2016 (In thousands of Reais) Code Description Paid in capital Capital reserve, Granted Options and Treasury Shares Income reserves Retained earnings Other comprehensive income Shareholders' equity Total Participation of Non- Controlling Consolidated Shareholders' equity Total 5.01 Beginning Balances 262, , , ,107 2,018,466-2,018, Adjusted Beginning Balances 262, , , ,107 2,018,466-2,018, Shareholders' Capital Transactions - 80 (428,384) (89,381) - (517,685) - (517,685) Share-based payments Additional dividends to the minimum mandatory (428,384) (428,384) - (428,384) Interim dividends (89,381) (89,381) - (89,381) 5.05 Total Comprehensive Income , , , Net Income for the Period , , , Internal Changes in Shareholders' Equity Accounts ,474 (30,474) Realization of Revaluation Reserve ,173 (46,173) Taxes on Realization of Revaluation Reserve (15,699) 15, Closing Balances 262, ,633 52, , ,633 1,678,351-1,678,351 Page 17 of 88

22 Consolidated Financial Information/Statements of Value Added (In thousands of Reais) Code Description Accumulated of Current Year 01/01/2017 to 06/30/2017 Accumulated of Prior Year 01/01/2016 to 06/30/ Revenues 903, , Sales of Goods, Products and Services 906, , Other Revenues 2, Allowance for Doubtful Accounts (5,371) Supplies Acquired from Third Parties (262,451) (300,289) Cost of Production, Goods and Services (194,561) (247,660) Materials, Energy, Third Party Service and Other (46,828) (43,160) Other (21,062) (9,469) Other Operating Costs (21,062) (9,469) 7.03 Gross Value Added 641, , Retentions (87,222) (80,815) Depreciation, Amortization and Exhaustion (87,222) (80,815) 7.05 Net Value Added 553, , Value Added Received by Transfer 39,006 45, Finance Income 39,006 45, Total Value Added to Be Distributed 592, , Distribution of Value Added 592, , Personnel 50,001 39, Direct Wages and Salaries 45,348 36, Fringe Benefits 2, F.G.T.S. 2,508 2, Taxes, Fees and Contributions 223, , Federal 207, , State 16,034 14, Municipal Third Party Capital Remuneration 102, , Interest 101, , Rental Shareholders Equity Remuneration 216, , Dividends 133,320 89, Retained Earnings / Losses of the Period 83,658 88,189 Page 18 of 88

23 Comments of performance 1. Profile AES Tietê Energia, one of AES Brasil Group s power generation companies, is a publicly-held corporation with shares listed on BM&FBovespa and is authorized to operate as a public utility company, by producing and commercializing electric energy as an independent energy producer. The Company activities are regulated and inspected by the Brazilian Electric Energy Agency (ANEEL), which is linked with the Ministry of Mines and Energy ( MME ). With a generation park comprised of nine hydropower plants and three small hydropower centers ("SHPP s"), AES Tietê Energia operates in Brazil since 1999 at the electrical energy generation and commercialization. The Company has capacity utilization of 2,658 MW and gross physical guarantee of 1,278 MW. The concessions of AES Tietê Energia's hydropower plants and SHPP Mogi-Guaçu expire in 2029 and SHPP São José and São Joaquim are authorized to operate until AES Tietê Energia's plants are located in Tietê, Pardo, Grande and Mogi-Guaçu Rivers, as shown in the following map: 2. Energy Generate In the 1S17, the total volume of energy generated by Company plants reached 5,795 GWh, 13.3% lower than the same period of The variance is a result of the decrease in inflows for the SIN in the 1S17 compared with the same period of 2016 (76.8% in 1S17 vs. 89.8% in 1S16 compared to the historical average). Page 19 of 88

24 Generation (plants) - GWh 1S17 1S16 Change (%) Gross Energy Generate 5,795 6, % Água Vermelha (Sen. José Ermínio de Moraes) 2,731 3, % Bariri (Álvaro de Souza Lima) % Barra Bonita % Caconde % Euclides da Cunha % Ibitinga % Limoeiro (Armando Salles de Oliveira) % Nova Avanhandava % Promissão (Mário Loprs Leão) % Mogi / S. Joaquim / S. José % 2.1 Economic and financial performance The Company is presenting the consolidated information for the semester ended June 30, 2017, compared to the individual information for the semester ended of June 30, In thousands of reais 1S17 1S16 Change R$ Change % Gross operating revenue 908, ,265 10, % Deductions from gross revenue (106,273) (103,052) (3,221) 3.1% Net operating revenue 802, ,213 7, % Operating Costs and expenses (408,908) (455,180) 46, % Gross profit 393, ,033 53, % Finance Results (62,842) (71,204) 8, % Income Before Taxes 330, ,829 61, % Income Tax and Social Contribution (113,829) (91,259) (22,570) 24.7% Net Income for The Period 216, ,570 39, % For the semester ended June 30, 2017 the Company had a net income of R$216,978, compared to a net income of R$177,570 in the same period of the previous year. The following items explain the main factors influencing the increase of 22.2% of the Company's results Page 20 of 88

25 2.2 Net operating revenue 1S17 GWh R$ GWh R$ GWh R$ Change % Change % Auction - Eletropaulo , , % -39.4% Auction - Other companies , , % -16.9% Bilateral Contracts 5, ,178 5, , % 0.2% CCEE MRE 860 8,345 1,844 22, % -63.1% Spot , , % 87.1% Others - 16,145-2, % Other revenues - 2, % Gross operating revenue 6, ,830 8, , % 1.2% 1S16 Deductions from gross revenue (106,273) (103,052) 3.1% Net operating revenue 802, , % The increase of 0.9% in net operating revenue is mainly explained by: increase of revenue arising from the sale at the spot market in the amount of R$23,065, particularly in virtue of the higher average price of the PLD in the period at the SE/CO submarket (R$ MWh in 1S17 vs. R$48.53/MWh in 1S16); recognition of retroactive adjustments, in the amount of R$11,627, calculated by CCEE in virtue of the negative financial exposures, arising from the difference of PLDs between the submarkets; increase of other bilateral agreements in the amount of R$1,927, due to higher tariff in the period (R$ in 1S17 vs. R$145.9 in 1S16), partially offset by lower volume sold of 5,016 GWh in 1S17 versus 5,511 GWh in 1S16, due to the reduction of the contracting level from 95% to 80% in 2017; The above factors were partially offset by: reduction in the energy sold to A-1 auction due to the terminations of agreements in the amount of R$16,073, particularly due to the breach of the electric energy trading agreement between Eletropaulo and the Company, in the amount of R$12,012; reduction of R$14,272 in revenue arising from the energy sold at MRE in comparison to the same period in 2016, particularly due to the lower generation volume observed in the period. Page 21 of 88

26 increase in the deductions from gross revenue by 3.1% or R$3,221 when compared to the same period in the previous year, particularly explained by the increase in the ICMS expense due to the higher average price of the bilateral agreements and operations carried out in states with a higher rate, added to the increase of PIS/COFINS expenses, particularly due to the higher sales at the spot market and higher price of other bilateral agreements. 2.3 Operating costs and expenses Reclassified In thousands of reais 1S17 1S16 Change R$ Change % Cost of electric energy (199,731) (273,990) 74, % Electricity purchased for resale (111,370) (173,514) 62, % Charge for use of transmission and distribution system (59,239) (55,295) (3,944) 7.1% Inspection charge - ANEEL (3,390) (3,429) % Compensation for use of water resources (25,732) (41,752) 16, % Operating Costs (209,177) (181,190) (27,987) 15.4% Personnel and management compensation (56,884) (46,623) (10,261) 22.0% Materials and third-party services (44,693) (43,160) (1,533) 3.6% Private pension entity (2,145) (313) (1,832) 585.3% Depreciation and amortization (78,294) (80,815) 2, % Others costs (27,161) (10,279) (16,882) 164.2% Total operating costs and expenses (408,908) (455,180) 46, % Operating costs and expenses in the semester ended June 30, 2017, presents a reduction of R$46,272 or 10.2% in relation to the same period of the previous year explained mainly by: lower cost of purchased energy for resale (R$111,370 in 1S17 versus R$173,514 in 1S16), particularly due to the reduction of the physical guarantee in virtue of the seasonality in 1S17, partially offset by the increased energy purchase from bilateral agreements due to the contracting strategy in the period, partially offset by the higher average Generation Scaling Factor (GSF) in 2Q17 at 16.4% versus the average reduction observed in 2Q16 at 10.7%; lower costs of financial exposure and price difference between submarkets (R$1,665 in 1S17 versus R$47,364 in 1S16), particularly in virtue of the exposure generated in the ERM arising from the PLD difference at submarkets; reduction of the compensation for use of water resources by 38.4% (R$25,732 in 1S17 vs. R$41,752 in 1S16), particularly explained by the decreased price of Page 22 of 88

27 the Adjusted Reference Fee (TAR), fixed at R$72.20 in 1S17 vs. R$93.35 in 1S16, added to the reduction of the electricity generation; reduction of depreciation and amortization due to the greater recognition of PIS/COFINS credits in the amount of R$3,918, when compared to the same period of the previous year, partially offset by the increased depreciation due to the additions to the fixed assets in the period; The above factors were partially offset by: increase of 30.4% or R$30,508 in PMSO (Personnel, Material, Services and Other) particularly caused due to (i) the wage adjustment of 9.3% from June 2016 and the restructuring of the Company's list of employees aiming to make the decisionmaking process quicker (ii) the recognition of the provision for doubtful accounts in the amount of R$5,371 in virtue of the uncertainties for the collections of the receivables; (iii) termination of the electric energy trading agreement between Eletropaulo and the Company at the A-1 auction, resulting in an increase of the tariff in the amount of R$7,738; and (iv) loss in write off of the fixed and intangible asset in the amount of R$4,487, partially offset by (v) lower services charges from consulting and law firms due to the performance of the corporate reorganization project in early Finance results In the semester ended June 30, 2017 the net finance results amounted to R$62,842 or 11.7% lower than the expenses presented on June 30, 2016, in the amount of R$71,204. The decrease was contributed by: Gain due to the negative inflation index (IGPM) in the monetary correction on the GSF injunction in the amount of R$7,573 in 1S17, compared to a loss of R$21,364 recorded in 1S16 due to the retroactive correction since June 2015; lower inflation adjustment in the amount of R$4,296, in virtue of the lower accrued IPCA in the period (1.18% in 1S17 vs. 4.42% in 1S16); lower interest charges in the amount of R$10,508, particularly in virtue of the lower average CDI rate (11.81% in 1S17 vs % in 1S16). The above factors were partially offset by: Page 23 of 88

28 reduction in interests on financial investments (R$40,341 in 1S17 versus R$44,966 in 1S16), particularly due to the lower interest rate between the semesters since, in 1S17, the average CDI rate was 11.81%, whereas it was 14.13% in 1S16, partially offset by the higher average balance of financial investments during the current period (R$885,807 in 1S17 vs. R$691,140 in 1S16); early payment of redemption premium in the amount of R$7,639 in virtue of the prepayment of the 2nd and 3rd Issue of Debentures and 2nd series of the 4th Issue of Debentures, which has not occurred in 1S16, plus the write off of deferred cost for such debts, in the amount of R$7, Income tax and social contribution Increase in the expense of income tax and social contribution (current and deferred) by R$22,570 or 24.7% compared 1S17 to the same period of This increase is due to, mainly to higher taxable income in 1S17, which was 23.1% higher. 2.6 Net income for the period Net income for the 1S17 was R$216,978, representing a 22.2% increase or R$39,408 compared to the net income of R$177,570 the same period in the previous year. This increase is due to the aforementioned factors. Page 24 of 88

29 1 General information AES Tietê Energia S.A. ("Tietê" or "Company") is a Publicly-traded company, whose headquarter is located in Dr. Marcos Penteado de Ulhôa Rodri gues Avenue, 939, 5 th floor, single room 2, Sítio Tamboré, Tower II Condominium Castelo Branco Office Park, Barueri, São Paulo State, Brazil. The Company has the right to operate as concessionaire for the use of public assets to generate and trade electric power as Independent Electric Energy Producer, with activities regulated and inspected by the Brazilian Electric Power Regulatory Agency - ANEEL, which is associated to the Brazilian Ministry of Mines and Energy. The Company's concession contract, signed on December 20, 1999, has 30 years period, maturing in 2029 as well as Mogi Guaçu's SHP concessions. São José and São Joaquim's SHPP are authorized to operate until the year of The Company is directly controlled by AES Brasil Holdings Ltda. and indirectly controlled by The AES Corporation (headquartered in the United States). Tietê s generating units comprise the following plants: Plant Year of completion Number of turbines Installed capacity MW Physical guarantee MW Hydroelectric Power Plants (HPP) Água Vermelha , Nova Avanhandava Promissão Bariri Barra Bonita Ibitinga Euclides da Cunha Caconde Limoeiro Small Hydroelectric Plants (SHPPs) Mogi-Guaçu São José São Joaquim Total 35 2,658 1,278 Strategy of Energy Trading In virtue of the increment of the risk associated with hydroelectric plants, the Company chose to reserve a part of its own energy to reduce possible exposure to spot market risks and a reduction in the Energy Reallocation Mechanism ("ERM") estimated for Also in this stream, the Company chose to renegotiate with some distribution companies, which entered into agreements at the latest 2015 A-1 auction for 2016 to 2018, including Eletropaulo Metropolitana Eletricidade de São Paulo S.A. ( Eletropaulo ). The Board of Directors' Meeting held on April 25, 2017, approved the termination of the electric energy commercialization agreement, as it entered into at the 15th Auction of Existing Energy (2015 A-1) between Eletropaulo and the Company. That termination was validated from May 2017 and the Company shall pay the Eletropaulo tariff burden in the amount of R$7,738. The payments are being made in 20 monthly installments adjusted Page 25 of 88