Conference Call Results

1Q17

Flow capacity tests of the hydropower plant of Santo Antônio at the Experimental Hydraulics and Water Resources Laboratory of Eletrobras Furnas

Credit: José Lins

May/2017

This presentation may contain certain estimates and projections. Such estimates and projections are not statements of events occurring in the past but reflect our management beliefs and expectations and may constitute forward-looking statements and estimates in accordance with the Comissão de Valores Mobiliários and the Securities and Exchange Commission, 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 "believe", "may", "might", "estimate", "continue", "anticipate", "intend", "expect" and similar words are intended 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, changes in interest rates, inflation and value of the Real, changes in volumes and the pattern of electric energy use by consumer, 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 power 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 Comissão de Valores Mobiliários and the Securities and Exchange Commission of the United States of America. Estimates and projections refer only to the date on which they were presented, and we assume no obligation to update any of these estimates or projections due to new information or future events. The future results of the operations and initiatives of the Companies may differ from the current expectations and the investor should not be based exclusively on the information contained herein.

Disclaimer

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• Revenues of R$ 8,969 million, 33% higher than 1Q16;

• Ebitda (CVM) of R$ 4,429, 317% higher than 1Q16;

• Managerial Ebitda of R$ 1,413 million, increase of 70%

• Net Financial Result of R$ 1,338 million, impacted by

Compulsory Loan (-R$ 439 million).

• Net Profit of R$ 1,394 million, 136% higher than 1Q16, due

to the effects of the sale of CELG D (R$ 1,525 million) and

RBSE remuneration (R$ 1,553 million), partially impacted

by Distribution Companies Losses (-R$ 1,086 million);

• Election of new members for the Board Of Directors and Fiscal Council.

• Transfer of Management of Sectorial Funds CDE, CCC and RGR to CCEE on May 1, 2017.

• RBSE (Basic Network of Existing System): Litigation Industrial Consumers X Federal Governament/ANEEL.

• Delivery of Report about CDE (Energy Development Account)/CCC (Fuel Consumption Account) to ANEEL

(Brazilian Electricity Regulatory Agency).

• Physical Aggregation of 101 MW of Installed

Capacity.

• Aggregation of 115 Km of Transmission Lines;

• RAP aggregation in corporate investments in the

amount of R$ 34 million.

Corporate

3

Operational Financial

Highlights Of The Results 1Q17

4

(1) Excludes construction, and in 1Q17, excludes Celg D and RBSE; (2) Excludes investigation expenses, investigation findings and, in 1Q17, CELG D; (3) Excludes contingencies, onerous contracts, impairment, CCC provision, provision for losses on investments, GSF provision. (4) Excludes disposal effects of CELG D, including reversal of Celg D's unsecured liability. (5) Excludes taxes levied on RBSE and disposal of CELG D. (6) Exclude net profit assigned to non-controllers.

CONSOLIDATED IFRS MANAGEMENT

1Q16 1Q17 % 1Q16 1Q17 %

Net Revenue 6,761 8,969 33 6,310(1) 6,780(1) 7

(-) PMSO -2,429 -2,496 3 -2,403(2) -2,392(2) -0.5

(-) Cost and Expenses -6.990 -4,330 -38 -3,691(3) -3,736(3) 1

(+) Shareholdings 182 1.825 902 182 300(4) 65

EBITDA -2,041 4,429 317 833 1,413 70

Financial Result -1,345 -1,338 1 -728 -867 -19

Taxes -74 -1,252 1,600 -74 -286(5) 289

Net Profit -3,898 1,394 136 -403 -201 50

Summary of the Results 1Q17

R$ million

5

IFRS 1Q16 GENERATION TRANSMISSION DISTRIBUTION

Regime Exploration O&M Exploration O&M

Net Revenue 3,636 430 300 868 1,952

(-) PMSO -763 -148 -191 -563 -374

(-) Cost and Expenses -3,027 -190 -150 -99 -1,106

EBITDA 176 101 -5 210 514

Financial Result -647 -175 -9 161 -259

Taxes -9 -62 -10 -6 -

Net Profit -809 -145 -61 360 214

Results by Segment – 1Q17

IFRS 1Q17 GENERATION TRANSMISSION DISTRIBUTION

Regime Exploration O&M Exploration O&M

Net Revenue 4,297 338 349 2,383 1,979

(-) PMSO -643 -159 -212 -686 -674

(-) Cost and Expenses -2.352 -278 -53 -286 -1,506

EBITDA 1,646 -87 89 1,420 -120

Financial Result -405 -159 -77 -10 -817

Taxes 209 -317 -57 -506 -

Net Profit 1,106 -575 -50 895 -1,018

Highlights Generation: Revenue:+14%, with emphasis on the concessions under Exploration Regime (+18%) Ebtida: +463% Net Profit : +156% Transmission: Revenue: +134%, due to the effects of RBSE. Ebtida: + 636% Net Profit: +182% Distribution: Revenue: +1% Ebitda: -123% Net Profit : - 576%, with emphasis on Amazonas D

R$ million

The Variations (%) refer to the comparison with the same components of 1Q16. In 1Q17 is included the consolidation of Celg D for 1 month and in 1Q16 didn`t have.

8,274

10,816

54

679

1,546 160 42 (129) 190

ROL 2016 Geração -

Regime deO&M

Geração -

Regime deExploração

Transmissão -

Regime deO&M

Transmissão -

Regime deExploração

Distribuição Receitas de

Construção(G,TeD)

Outras

Receitas

ROL 2017

+31%

Gross Revenue

1Q17

6

Gross Revenue 1Q17

Highlights: • Generation - Exploration: (i) Growth of 8% in Generation Supply revenues, influenced by the increase in sales price in the ACR; (ii)

Growth of 82.3% in Short-Term Energy Revenue in Generation, mainly due to the variation of Spot Price (PLD) and the termination of some contracts and surplus of Physical Guarantee (Eletronorte).

• Transmission - O&M: (i) Remuneration of RBSE Indemnification in the amount of R$ 1,553 million in 1Q17. • Transmission – Exploration: (i) improve in the rate of return due to new investments under operation. The Variations (%) refer to the comparison with the same components of 1Q16.

Generation - O&M Regime

Generation - Exploration

Regime

Distribution Other Revenues

Transmission - Exploration

Regime

Transmission - O&M Regime

Construction Revenues (G,

T and D)

Gross Revenue

1Q16

R$ million

+11% +18%

+127%

+200%

+2% -29% +75%

Generation - O&M Regime

Generation - Exploration

Regime

Transmission - Exploration

Regime

Transmission - O&M Regime

Gross Revenue

1Q16

-2,041 2,207

4,429

1,643

433 80 411

185 5

70 7

2,964

EBITDA CVM1Q16

ROL Shareholdings EnergyPurchased

Charges of theuse of the

System

Fuel Personnel Material Services Remunerationand

Reimbursement

Other Expenses EBITDA CVM1Q17

33%

902%

20% 20%

-98%

13%

-8%

14%

-7%

-76%

7

Ebitda 1Q17

Highlights:

• Growth of Revenue due to the effects of RBSE remuneration, Generation Supply revenues and Short-Term Energy Revenue. • Provision for contingencies in 1Q17 lower than 1Q16, mainly due to the partially reversal of Compulsory Loan. • Disposal of Celg D. The Variations (%) refer to the comparison with the same components of 1Q16

R$ million

+317%

CONSOLIDATED 1Q16 1Q17 (%)

Personnel -1,417 -1,602 13

Materials -60 -55 -8

Services -511 -581 14

Investigation Services -26 -7 -73

Others -441 -258 -38

Donation and contributions -70 -34 -52

Other operational expenses -371 -224 -35

Total PMSO -2,429 -2,496 3

Total Management PMSO* -2,403 -2,392 -0.5

*Exclude CELG-D, Investigation Findings and Investigation Services

Personnel, Materials,

Services and Others R$ millions

Highlights:

• Personnel: (i) Adjustment of collective bargaining agreement of around 9%; (ii) litigation labor settlement signed by Eletronorte; and (iii)

consolidation of CELG D for 1 month of 1Q17. Excluding CELG D, the increase would be 10.5%.

• Materials: Reduction of costs at CGTEE.

• Services: (i) the consolidation of 1 month of CELG D (R$ 40 million); ii) Adjustment of contracts based on inflation. Excluding CELG D, the

increase would be 5.6%.

• Others: (i) regulatory losses cut-off factor in the subsidiary Amazonas Energia; And (ii) Reduction of the amount of Donations and Contributions.

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1Q16 1Q17 %

Contingencies 2,949 112 -96

PCLD - Consumers and Resellers 142 94 -34

PCLD - Financing and Loans 5 5 0

Impairment 0 271 100

Onerous Contracts -101 -319 216

Losses on Investments 0 20 100

Others 13 166 1,181

Total 3,013 361 -88

Operating Provision

R$ million

* The negative values in the table above indicate reversals of provisions.

Highlights: • Reversal of R$ 142 million

related to compulsory loan contingencies in 1Q17, while 1Q16 had a provision of R$ 2,814 million.

• Impairment of R$ 271 million, mainly Angra 3 (R$ 220 million) e Transmission

(R$ 125 million, mainly in Chesf).

• Reversal of R$ 319 million

related to onerous contract, mainly Angra 3 (R$ 220 million) and Distribution Companies (R$ 111 million).

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Shareholdings – Impact of Celg D’s Disposal R$ billion

Revenue related to the sale for ENEL 1,065

Revenue related to the sale for employees of Celg D 82.5

Revenue related to the Sale 1,148

(+) Reversal of Celg D unsecured liability (until Jan/2017) 393

(- ) Other Comprehensive Income - OCI 16.3

Impact of Celg D’s Disposal in Shareholdings Account 1,525

(- ) Taxes 438

Impact of Celg D’s Disposal after Taxes 1,087

Shareholdings increased

902%, from R$ 182 million in

1Q16 to R$ 1,825 million in

1Q17, mainly due to the

Revenue of R$ 1,525 million

related to the disposal of

the shares of CELG D.

The Managerial

Shareholdings, excluding the

effect of CELG D, increased

65%, from R$ 182 million in

1Q16 to R$ 300 million in

1Q17.

Shareholdings

Financial Result 1Q 17

1Q16 1Q17 %

Financial Revenues 3,870 1,785 -53.9

Interest income, commissions and fees 193 210 9

Revenue from financial investments 309 286 -7

Moratorium surcharge on electricity 131 103 -21

Monetary adjustment 800 308 -61

Exchange rate changes 2,188 611 -72

Remuneration of 1st Tranche Indemnification 18 5 -72

Regulatory asset adjustment 26 117 353

Gains on derivatives 206 144 -30

Other financial income 193 210 9

The Company's Net Financial

Result in the negative amount

of R$ 1,338 million was

impacted by the monetary

restatement related to the

Compulsory Loan processes

in the amount of R$ 439

million.

1Q16 1Q17 %

Financial Expenses -5,215 -3,122 -40.1

Debt charges -1,507 -1,559 3

Lease charges -67 -81 21 Charges on shareholders' resources -11 -119 997

Monetary adjustment -922 -550 -40

Exchange rate changes -2,373 -580 -76

Regulatory liabilities adjustment -8 -15 93

Derivative losses 53 0 -100

Other financial expenses -381 -218 -43 Financial Result -1,345 -1,338 1 11

R$ million

Gross Debt

Gross Debt Profile

Financings (R$) 5,736 4,517 8,049 4,053 9,091 2,256 11,984 45,686

Maturity (year) 2017 2018 2019 2020 2021 2022 Após 2022

Total

Excludes debêntures

R$ million

26% 57%

16% 1%

Moeda Estrangeira Moeda Local RGR Outros

Gross Debt: R$ 45,893 million

USD USD comLibor

EURO IENE Outros

9,013

2,394

202 95 1

CDI IPCA TJLP SELIC Outras

12,455

488

6,316

1,170

5,834

Foreign Currency Local Currency Others RGR

Others Others

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Net Debt

EBITDA Adjusted* 2.6 1.9 2.7 2.5 3.5 4.1

Total Debt 45,893

Financing payable without RGR 42,751

(-) (Cash + Securities) 7,725

(-) Financing Receivable without RGR 10,536

(-) Net of Itaipu Financial Asset 1,354

Net Debt 23,136

*LTM

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R$ million

17.0 19.0

20.9 21.6

6.5

9.8

7.8 8.5 6.7

5.7

dez-15 mar-16 jun-16 set-16 dez-16 mar-17

Management Net Debt Management Net Debt/ Management EBITDA

23.4 23.1

Dec-15 Dec-16 Sep-16

Economic and Financial Performance

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2,403 2,392

38% 35%

1%

21%

41%

61%

-1.000

1.000

3.000

5.000

1T16 1T17

PMSO Gerencial PMSO Gerencial/ROL GerencialManagerial PMSO

Managerial PMSO and PMSO/Managerial ROL EBITDA and EBITDA Margin

1Q16 1Q17 -2,041

4,429

833 1,413 13.2%

20.8%

-15,0%

-5,0%

5,0%

15,0%

25,0%

35,0%

45,0%

-3.000

-2.000

-1.000

0

1.000

2.000

3.000

4.000

5.000

1Q16 1Q17

EBITDA Managerial EBITDA Managerial EBITDA Margin

Managerial PMSO/ Managerial ROL

R$ million

Investments 2017

15

Distribution Number of Consumer assisted: 4,348,028

Number of Cities: 463 Extension of Distribution

Lines: 264,360 Km

Note: This presentation may contain certain estimates and projections. See Disclaimer.

R$ million Eletrobras’ Installed Capacity: 46,950 MW

31% of Brasil’s Installed

Capacity

Generation Physical Aggregation

1Q17: 101 MW

Eletrobras’ Transmission Lines:

70,316 Km, 63,502 Km ≥ 230kv

47% of Brasil’s Transmission Lines basic

network

Transmission Lines Physical

Aggregation 1Q17: 115 Km

Highlight: Furnas (110Km)

Increase of Consumers

1Q17: 82,948 Highlight: Boa Vista

Budgeted 2017 Realized 1Q17 %

Generation 2,264.7 171.2 7.6%

Transmission 1,718.6 193.1 11.2%

Distribution 2,211.6 153.4 6.9%

SPES 2,438.1 639.5 26.2%

Others (Research.

Infrastructure and Environmental quality) 320.7 58.7 18.3%

Total Investments 8,953.7 1,215.90 13.6%

Organizational Restructuring – Targeting annual saving of R$67.8 million/year

(-26% managerial positions)

Launch of Incentive Retirement Plan - PAE: May 22, 2017.

CSC - Launched: April 24,17

Start of Implementation: May 1, 2017

Conclusion of the First Step (RJ): December/17

Evolution of Master Plan PDNG 2017-2021

NET DEBT = 5.7

Ajusted EBTIDA

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Approved - Reduction of 678 bonus functions (-33%), from 2,220 to 1,542, including reduction of 107 advisors and 427 managers with estimated savings of R$ 73 million.

NET DEBT < 4.0

Ajusted EBTIDA

Target: Leverage decrease

PMSO < 1.0 Regulatory PMSO

Target: Operational efficiency

Filing of 20F/2016 on May 1, 2017;

Reduction of material weaknesses on 20-F 2016 from 6 to 4;

Hired of Independent Whistleblowers Channel – June, 2017

Due Diligence: Conclusion of the first step to identify the suppliers that are exposed to

compliance risks in april/17. Due Diligence of them will be started in May/17;

Creation of Transitional Internal Elegibility Committee – “CITE”

Election of new members for the Board of Directors and Fiscal Council, complying

with the requirements of the "State-Owned Companies Accountability Law“.

Evolution of Master Plan PDNG 2017-2021

17

Elena Landau - Chairman

Wilson Ferreira Junior

Ariosto Antunes Culau

Carlos Eduardo R. Pereira

Edvaldo Luís Risso

Esteves Pedro Colnago Junior

José Guimarães Monforte

José Pais Rangel

Vicente Falconi Campos

Fiscal Council

Agnes Maria De Aragão Da Costa

José Wanderley Uchôa Barreto

Luís Felipe Vital Nunes Pereira

Patrícia Valente Stierli

Ronaldo Dias

Board of Directors

Target: Eliminate material weaknesses

> 7.13 Market Multiple

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