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Earnings Release – 4Q20 - NOVO MERCADO BM & FBOVESPA pouatorial ENERGIA IBOVESPA - zBrasília , March 24th , 2021 Equatorial Energia S.A. , holding acting on the Brazilian electrical sector , on the distribution , transmission , generation , commercialization and services segments ( B3 : EQTL3 ; USOTC : EQUEY ) announces today its results for the fourth quarter ( 4Q20 ) . Consolidated Adjusted EBITDA reached R $ 1,677 million in the quarter ( 34.8 % vs 4Q19 ) Equatorial ended the quarter with adjusted Net Income of R $ 928 million ( + 29.8 % vs 4Q19 ) . Consolidated Adjusted EBITDA reached R $ 1.677 million on the quarter , a raise of 34.8 % , mainly impacted by the Discos Equatorial Piauí , Maranhão and Alagoas . Equatorial ended the quarter with R $ 7.7 billion consolidated cash , with a net debt / EBITDA of 2.1x . Equatorial Signed a contract with BNDES , in December , for financing the investment plans 2021-2023 in Maranhão and Pará , in the amount of R $ 1,361 million and R $ 751 million , respectively , with a 20 - year maturity . Extraordinary Tariff Review approved in Piauí , in December 2020 , with an increase of 4.3x in the asset base , totaling R $ 1,671 million , and an increase in regulatory EBITDA to R $ 387 million , in addition to the recognition of the R $ 392 million ( R $ 356 million net of tax ) indemnity income to be made with RGR's proceeds . ► As a result of the turnaround process , which started less than 2 years ago ( Feb / 19 ) , Alagoas will make its first dividend distribution under the group's management , totaling R $ 64.1 million . In Equatorial Energia , the Board of Directors approved today the payment of dividends in the amount of R $ 707.1 million ( R $ 0.72 per Equatorial Energia's common shares ) that will be submitted to the ordinary shareholders ' meeting . ► The billed volume reached 6,307 GWh , with a consolidated growth of 1.7 % when compared to the same quarter of the last year . We highlight Maranhão , Piauí and Alagoas , who presented a growth of 3.4 % , 2.5 % and 2.1 % , respectively , when compared to the 4Q19 . Total losses decreased in Piauí for the seventh consecutive quarter , ending the quarter at 21.5 % , down 1.0 pp , and in Alagoas for the fifth consecutive quarter , reaching 23.6 % , compared to 3Q20 , down 0.2 pp . Maranhão closed 4Q20 at 18.5 % of the injected energy , with an increase of 0.2 pp compared to 3Q20 . In Pará , total losses ended 4Q20 at 30.8 % of the injected energy , with an increase of 0.9 p.p. All four Discos presented an improvement on the DEC and FEC quality indicators when compared to the 3rd quarter of 2020 , we highlight Alagoas , where the DEC indicator ended the 4Q20 in 19.3 hours , improving 10.6 % and the FEC indicator improved 13.5 % , ending the 4Q20 in 9.6 times . ► In the 4Q20 , Equatorial consolidated investments ( including the transmission segment , Piauí and Alagoas ) reached R $ 917 million , 16.9 % less than the investments made in 4Q19 , due to the proximity of the conclusion of greenfield transmission projects . In December 2020 , the last section of SPE 07 came into operation , with the equivalent of R $ 13.9 million from RAP ( Annual Permitted Revenue ) , and the start of operation of SPE 05 , initially with the equivalent of R $ 7,6 million of its RAP , with the remainder starting operations in January 2021. Considering all transmission projects , we currently have 75 % of active RAP . Financial Highlights ( R $ MM ) 4Q19 4Q20 Var . 2019 2020 Var . Net Operating Revenues ( NOR ) 6,185 5,993 Adjusted EBITDA ( Quarter ) 1,244 1,677 -3.1 % 34.8 % 18,796 4,056 17,890 -4.8 % 4,764 17.4 % EBITDA Margin ( % NOR ) 20.1 % 28.0 % 7.9 p.p. 21.6 % 26.6 % 5.0 p.p. Adjusted EBITDA ( Last 12 monts ) 4,056 4,764 17.4 % 4,056 4,764 17.4 % Adjusted Net Income 715 928 29.8 % 1,484 2,257 52.1 % Net Income Margin ( % NOR ) 11.6 % 15.5 % 3.9 p.p. 7.9 % 12.6 % 4.7 p.p. Net Income per Share ( R $ / share ) 3.54 4.59 29.8 % 7.35 11.18 52.1 % Investments 1,104 917 Net Debt 10,595 10,196 -16.9 % -3.8 % 4,800 10,595 2,908 -39.4 % 10,196 -3.8 % Net Debt / Adj EBITDA ( Last 12 mont Cash Short Term Debt 2.6 3.1 2.1 -0.5 x 2.6 2.1 -0.5 x 2.9 -0.2 x 3.1 2.9 -0.2 x Financial Highlights ( R $ MM ) 4Q19 4Q20 Var . 2019 2020 Var . EQTL Maranhão EQTL Pará 285 397 322 462 39.1 % 43.6 % 968 1,081 1,095 13 % 1,362 26 % EQTL Piauí 67 185 EQTL Alagoas 88 Transmissão ( Regulatory ) 45 144 147 174.9 % 64.4 % 227.0 % 161 360 123 % 123 338 175 % 156 416 167 % Operating Highlights 4Q19 4Q20 Var . 2019 2020 Var . Sold Energy ( GWh ) 6,200 6,307 Number of Consumers ( ' 000 ) 7,665 7,817 1.7 % 2.0 % 22,354 7,665 23,198 7,817 3.8 % 2.0 %