Alupar Investimento S A : Dados Econômico-Financeiros

Quarterly information Individual and Consolidated

June 30, 2021

Alupar Investimento S.A.
Quarterly information
Summary
Comments on Alupar's performance .........................................................................................................................	03
Independent Auditor's Review Report on quarterly information................................................................................	14
Balance Sheets ..........................................................................................................................................................	16
Statements of Income ...............................................................................................................................................	18
Statements of Comprehensive Income ......................................................................................................................	19
Statements of Changes in Equity ...............................................................................................................................	20
Statements of Cash Flows..........................................................................................................................................	21
Statements of Value Added .......................................................................................................................................	22
Notes to the interim financial information.................................................................................................................	23
Officer's Statement on the quarterly information......................................................................................................	78
Officer's Statement on Independent Auditor's Report ...............................................................................................	79

Analysis of Consolidated Result

The results of three and six-month periods ended June 30, 2020 are being restated for the sole and exclusive purpose of reflecting in the interim financial information the impacts of CVM Official Letter 04/2020, which were adequate on December 31, 2020. Such restatement does not change the Company's annual result disclosed on March 22, 2021 (Seee note 2.4)

Net Operating Revenue - IFRS

Alupar and its subsidiaries reported a Net Revenue of R$ 1,337.1 million in 2Q21, increasing 27.1% over the R$ 1,051.8 million reported in the same period of 2020.

Net Revenue (R$ MM)

	1Q21	2Q21	2Q20	Var.%		6M21	6M20	Var.%
Energy Transmission Revenue	94.8	101.9	71.8	41.9%		196.7	135.3	45.3%
Infrastructure Revenue	505.6	191.0	654.8	(70.8%)		696.6	1,466.6	(52.5%)
Remuneration of Concession Assets	976.4	1,008.8	312.9	222.4%		1,985.3	692.6	186.6%
Energy Supply	181.5	171.7	119.2	44.0%		353.2	298.3	18.4%

Gross Revenue - IFRS	1,758.4
Deductions	156.9

1,473.4 1,158.7 27.2%

136.2 106.9 27.5%

3,231.8 2,592.8 24.6%

293.1 237.2 23.6%

Net Revenue - IFRS	1,601.5 1,337.1 1,051.8	27.1%		2,938.6 2,355.6	24.8%

(a) an increase of R$ 262.2 million in revenue of the transmission companies, of which the mais lines are:

1. a R$ 696.0 million increase in Revenue from Remuneration of Concession Assets, as detailed below:

Transmitters

Revenue from Concession	ETB	TPE	EDTE
Asset Remuneration
2Q21	79.3	141.0	30.2
2Q20	20.7	30.9	10.7
Variations	58.6	110.1	19.5

EATE	ETEP	ENTE	STN	ECTE	TSM	TCC	Other	Total
Transmitters
183.0	40.8	79.5	66.9	42.2	18.3	93.6	234.0	1,008.8
69.7	14.8	28.8	26.4	13.9	2.9	15.7	78.4	312.9
113.3	26.1	50.7	40.5	28.3	15.4	77.8	155.7	696.0

1. a R$ 463.8 million reduction in Infrastructure Revenue, as detailed below:

Transmitters

Infrastructure Revenue	ETB	TPE	TCC	ESTE	TSM
2Q21	-	-	-	166.1	19.6
2Q20	100.2	284.4	137.0	58.9	71.2
Variations	(100.2)	(284.4)	(137.0)	107.2	(51.7)

ELTE	ETES	Other	Total
Transmitters
4.5	-	0.8	191.0
0.5	2.0	0.6	654.8
4.0	(2.0)	0.2	(463.8)

1. a R$ 52.5 million increase in Energy Supply Revenue, as detailed below:

Energy Supply		Generation Combined		Alupar Trading			Intercompany Eliminations		Generation Consolidated
2Q21		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value
ACR (Long Term Contract)	454,640	171.84	78,125									454,640	171.84	78,125
ACL (Short Term Contract)		168,228	278.67	46,880						(87,142)	202.08	(17,610)		81,086	360.98	29,270
Trading		175,688	246.75	43,351		25,680	137.31	3,526						201,368	232.79	46,877
Related Parties		3,720	220.10	819		189,993	138.84	26,379		(193,713)	140.40	(27,198)				-
CCEE				15,784				1,381								17,165
Tax				241												241
Total				185,200				31,286				(44,807)				171,678
Energy Supply		Generation Combined		Alupar Trading			Intercompany Eliminations		Generation Consolidated
2Q20		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value
ACR (Long Term Contract)	459,369	164.26	75,456									459,369	164.26	75,456
ACL (Short Term Contract)		192,069	242.90	46,654						(87,142)	197.52	(17,212)		104,927	280.60	29,442
Trading		41,479	54.82	2,274		149,421	52.17	7,796		(139,565)	45.97	(6,416)		51,335	71.19	3,654
Reclassification		(15,624)	302.71	(4,730)										(15,624)	302.71	(4,730)
CCEE				11,387				3,769						-		15,156
Tax				236												236
Total				131,278				11,565				(23,628)				119,215
Variations				53,921				19,721				(21,180)				52,463

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Cost of Services - IFRS

In 2Q21, Cost of Services totaled R$ 229.6 million, 63.2% lower than the R$ 623.1 million reported in 2Q20. Below are the main variations for this accounting line:

(a) a reduction of R$ 389.9 million in Infrastructure costs, according to the variations below:

Transmitters

Infrastructure Cost	ETB	TPE	TCC	ESTE	TSM
2Q21	-	0.0	(60.4)	79.4	87.7
2Q20	91.6	194.7	103.5	61.6	45.7
Variations	(91.6)	(194.7)	(163.9)	17.8	42.0

ELTE	ETES
3.4	-
0.3	2.3
3.2	(2.3)

Other	Total
Transmitters

0.5 110.6

0.8 500.5

(0.3) (389.9)

1. a R$ 18,6 million decrease in Depreciation / Amortization line given that in 2Q20 an amount of R$ 19.8 million was reported, (Ijuí HPP: R$ 9.6 million; Ferreira Gomes HPP: R$ 3.1 million; Queluz SHPP: R$ 4.2 million and Lavrinhas SHPP: R$ 2.9 million) considering that the unitization of assets that were recorded as "property, plant and equipment in Progress" and, as of that quarter, reclassified as "fixed assets in service";
2. a R$ 6.8 million increase in Costs of Services, mainly due to:

1. R$ 6.9 million in transmission companies TPE, ETB and TCC, due to their respective commercial start-ups;

1. R$ 0.8 million in Morro Azul SHPP arising from higher sector charges linked to power generation, which was 35,222 MWh this quarter, 178.3% higher than the 19,751 MWh generated in 2Q20.

1. a R$ 7.8 million increase in Energy Purchased for Resale, as detailed below:

Energy Purchase	Generation Combined		Alupar Trading			Intercompany Eliminations		Generation Consolidated
1Q21		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value
		192.08	(25,604)	(129,211)	116.38	(15,037)	-	-	-	(262,507)	154.82	(40,641)
Trading		(133,296)
CCEE				(186)				(1)		-		-				(187)
Related Parties	(189,994)	138.84	(26,379)		(90,861)	202.82	(18,428)		280,855	159.54	44,807			-	(0)
Taxes				3,482				3,399								6,881
Total				(48,687)				(30,067)				44,807				(33,947)
Energy Purchase	Generation Combined		Alupar Trading			Intercompany Eliminations		Generation Consolidated
2Q20		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value		MWh	Price	Value
Trading	(301,043)	63.44	(19,097)	(178,869)	202.73	(36,263)	226,707	104.22	23,628	(253,205)	125	(31,733)
CCEE			(107)		-	-	(54)								(161)
Taxes			1,842				3,953								5,795
Total			(17,362)				(32,364)				23,628				(26,098)
Variações				(31,325)				2,297				21,179				(7,849)

Cash costs, excluding infrastructure cost (CAPEX) and depreciation/amortization, totaled R$ 90.6 million (6.8% of Net Revenue) in 2Q21, compared to R$ 75.7 million (7.2% of Net Revenue) in the same period of 2020.

Operating Costs R$ (MM)

Operating Costs	1Q21	2Q21	2Q20	Var.%			6M21	6M20	Var.%
Cost of Services Rendered	40.5	45.4	38.6	17.7%			85.9	73.4	17.0%
Energy Purchased for Resale	26.7	33.9	26.1	30.1%			60.6	58.8	3.1%
Charges of Electric Grid - CUST	8.0	8.2	8.0	2.7%			16.2	16.0	1.3%
Hydro Resources - CFURH	2.7	3.0	3.0	1.4%			5.7	5.0	12.4%
Infrastructure Cost	393.2	110.6	500.5	(77.9%)			503.9	1,000.6	(49.6%)
Depreciation / Amortization	27.9	28.3	46.9	(39.6%)			56.2	73.3	(23.3%)
Total	498.9	229.6	623.1	(63.2%)				728.5	1,227.1	(40.6%)

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Operating Expenses - IFRS

In 2Q21, Operating Expenses totaled R$ 7.5 million, 76.8% lower than the R$ 32.1 million reported in 2Q20.

The R$ 24.7 million variation in this accounting group was due to:

1. a R$ 25.3 million decrease in Other Expense / Revenues account, mainly due to the increase of R$ 24.8 million in Other Revenues line of the transmission company TSM, due to the execution of an insurance guarantee related to the accomplishment of an agreement with one of the service providers for asset construction;
2. a R$ 1.6 million decrease in Equity Pickup, which totaled R$ 2.1 million in this quarter, against R$ 0.5. million reported in 2Q20. This result is exclusively due to the variation in transmission company TNE. This transmission company reported a profit of R$ 4.1 million in this quarter, resulting in an equity pickup of R$ 2.1 million. In 2Q20, its profit was R$ 1.1 million, resulting in an equity pickup of R$ 0.5 million;
3. R$ 4.5 million reduction in General and Administrative line arising from:

1. a decrease of R$ 9.8 million in Alupar - Holding, which recorded an expense of R$ (0.9) million in this quarter, due to the reversal of provisions related to labor claims. In 2Q20 an expense of R$ 8.9 million was reported, of which R$ 6.8 million refers to the write-off of generation projects that were discontinued.
2. an R$ 4.1 million increase in Generation Segment:
   (ii.i) an R$ 0.3 mm increase in La Virgen HPP due to the start-up of its generating units (GU1 anda GU2)
   (ii.ii) an R$ 1.6 million increase in Verde 8 SHPP, which recorded an expense of R$0.2 this quarter. In 2Q20 it was a positive amount of R$ 1.3 million was recorded due to a reversal of a provision made in 1Q20 in the amount of R$ 1.6 million related to the ISS (tax) on services to implement the project and;
   (ii.iii) an R$ 0.7 million increase in Lavrinhas SHPP, R$ 0.4 million in Queluz SHPP and R$ 0.7 million in Foz do Rio Claro HPP, due to extraordinary expenses with legal advice.
3. an R$ 1.5 million increase in Transmission Segment, mainly, due to R$ 1.3 million increase in ETB, TPE and TCC transmission companies considering their start-ups (ETB: oct/20; TPE: oct/20; TCC: mar/21).

1. a R$ 8.2 million increase in Personnel and Management, mainly due to:

1. a R$ 5,6 million increase in Alupar - Holding mainly due to Profit Sharing payment in this quarter and;
2. a R$ 2.7 million increase in transmission segment:
   (ii.i) increase of R$ 2.1 milion in ETB, TPE and TCC transmission companies due to their commercial start-ups;
   (ii.ii) increase of R$ 1.7 milion in TBE transmission company since profit-sharing for 2020 was paid in the first quarter and, this year, it was paid in the second quarter and;
   (ii.iii) decrease of R$0.9 mm in transmineiras companies (Transleste / Transudeste / Transirape), given that, as of April 2020, the administrative / financial and operation and maintenance activities were absorbed by TBE's structure.

Operating Expenses R$ (MM)

Operating Expenses	1Q21	2Q21	2Q20	Var.%		6M21	6M20	Var.%
General and Administrative	9.7	9.3	13.8	(32.6%)		19.0	28.1	(32.5%)
Personnel and Management	14.7	24.3	16.1	50.7%		39.0	30.5	27.8%
Equity Pickup	(1.5)	(2.1)	(0.5)	286.3%		(3.6)	(1.2)	200.2%
Others	(0.6)	(25.6)	(0.3)	-		(26.2)	(1.0)	-
Depreciation / Amortization	1.6	1.6	3.1	(49.8%)		3.1	4.7	(33.5%)

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