ISA CTEEP Investment and Infrastructure Update

EVOLUTION OF MAIN DISPUTES WITH FAVORABLE DECISIONS REINFORCES FOCUS IN CONTINGENCIES REDUCTION isa CTEEP Supplemental Retirement Case Law 4,819/58 Collective Action ■ Starting in 2004, the Treasury Office (SEFAZ) began to pass through 70%¹ of the amount that retirees would receive ■ ISA CTEEP, by provisory judicial decision, has to pay the remaining amount (30%), which is equivalent to an estimated cash disbursement of BRL 180 million/year Unanimous favorable decision in 2nd instance reinforces the merit of the case. In 2017, the payment was suspended for 4 months, but resumed by decision of the Federal Supreme Court injunction Eletrobrás / Eletropaulo Case Charge from Eletrobrás regarding the balance of a debt in 1986 ■ Eletropaulo's partial spin-off protocol, that constitutes EPTE, mergered with ISA CTEEP in 2001, states that obligations of any nature until the date of the spin-off are Eletropaulo's responsibility ■ Deal between Eletropaulo and Eletrobrás in 2018, in the amount of BRL 1.5 billion ■ In the approval of the agreement, ISA CTEEP was excluded from the case Debt Collection ■ Debt collection action against the State of São Paulo (SEFAZ) with unanimous favorable decision in the 2nd instance ■ Amount on June of 2018: BRL 1.9 billion² Note: 1 The main exclusions are (i) payments above the ceiling which is the Governor's salary (~R$ 22 thousand), and (ii) contributions to State retirement; 2 Does not consider monetary adjustment and interest since the filing of the case 25

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