Energisa S/A | FACT SHEET - Results for the 1st quarter of 2016 | Re-presented Business profile In business for 111 years, Energisa Group’s core activity is the distribution of electricity. The Group's evolution is intertwined with the Brazilian electric sector's, and it is renowned for the pioneering spirit that has always underpinned its actions. Evidence of this is the fact it was one of the first companies to go public in 1907, obtaining registration number 3 on the Rio de Janeiro stock exchange.

2014 Energisa completed the acquisition of the eight energy distribution companies of Rede Group, which had been under the intervention of the National Electricity Regulatory Agency since September 2012. The acquisition of Rede Group makes Energisa the fifth largest electricity distribution group in Brazil in terms of clients, with approximately 6.4 million consumers and serving a population of around 16 million people.

The growth strategy is focused primarily in the distribution of energy and power generation. On April 11,

Location of the distribution companies and electricity generation companies of Energisa Group

Energisa S/A

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Energisa S/A | FACT SHEET - Results for the 1st quarter of 2016 | Re-presented Growth in Number of Consumers The consumer base served by the Energisa companies, which is an important foundation for sustaining sales, expanded by 2.7% in 1Q16 over1Q15, amounting to 6,440,492 as of March 31, 2016. Number of consumers in thousand Rede Group acquisition 6,220

6,404

6,440

2015

1Q16

EPB acquisition

2,549

2,646

2,167

2,253

2,453

2,067

2,338

1,979

2006

2007

2008

2009

2010

2011

2012

2013

EBO acquisition

ENF and ESE acquisition 641

667

1997

1998

1,554

1,656

1,706

1,774

1,838

1,891

2000

2001

2002

2003

2004

2005

821

214 1996

1999

2014

Financial and Operating Highlights Economic, Financial and Operating Indicators 1Q16 (Re-presented)

Description

Consolidated Income and Margins - R$ million Gross Operating Revenue Gross Operating Revenue, without construction revenue Net Operating Revenue Net Operating Revenue, without construction revenue Earnings before interest and tax (EBIT) Net Financial Result EBITDA EBITDA, without asset sale Adjusted EBITDA, without asset sale Adjusted EBITDA, with asset sale Net Income Recurrent Net Income Net Margin (%)

1Q15

Change %

4,463.5 4,204.3 2,792.3 2,533.1 176.9 26.2 352.8 352.8 391.4 391.4 124.5 124.5 4.5

4,057.7 3,847.7 2,766.1 2,556.1 279.2 (343.5) 945.1 456.9 509.1 997.3 276.7 4.1 10.0

+ 10.0 + 9.3 + 0.9 - 0.9 - 36.6 - 62.7 - 22.8 - 23.1 - 60.8 - 50.2 + 3,263.4 - 5.1 p.p

6,374.7 7,212.4 8,246.0 6,440,751 11,994 15,227

6,500.3 7,440.6 8,207.0 6,271,284 11,179 15,964

- 1.9 - 3.1 + 0.5 + 2.7 + 7.3 - 4.6

Operating Aspects Energy sold to Captive Consumers (GWh) Energy sold to Captive Consumers + Transportation (TUSD) – GWh Total Electricity Sold (GWh) Total Number of Consumers Number of Own Staff Work force (own + outsourced staff (1)) (1)

Excludes outsourced construction workers.

Energisa S/A

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Energisa S/A | FACT SHEET - Results for the 1st quarter of 2016 | Re-presented Net income and cash generation (EBITDA) In the first three months of 2016, Energisa presented consolidated net income of R$ 124.5 million, compared with R$ 276.7 million in the same quarter of 2015 (1Q15). Note that the performance in 1Q15 was boosted by revenue from the sale of assets, before tax, of R$ 324.7 million and diminished by amortizations of goodwill on the acquisition and fair value of companies acquired

from Rede Group, in the amount of R$ 52.5 million net of tax. The pro-forma net income from continuing operations in 1Q15 is therefore R$ 4.1 million. Consequently, the consolidated net income in 1Q16 was 30.4 times greater than that in 1Q15. See below the variation of the main items determining net income between 1Q15 and 1Q16:

Performance of Net Income (R$ million) 369.7

(488.2)

11% 26.3

(128.5)

276.7

68.5 124.5

Net Income 1Q15

Net Revenue

Operating expenses

In turn, adjusted cash generation (Consolidated Adjusted EBITDA) amounted to R$ 391.4 million compared with R$ 509.6 in 1Q15, disregarding the sale of the generating assets in that quarter last year, which represents a decrease of R$ 118.2 million. Note that this decrease primarily derived from extraordinary adjustments which bolstered Adjusted EBITDA in 1Q15, not recurring in 1Q16, as described below:  adjustment to the memorandum account for amounts of the A portion (“CVA”) for prior years, of R$ 46.0 million, of which R$ 36.0 million enhanced the Adjusted EBITDA of Energisa Mato Grosso do Sul and R$ 10.0 million at Energisa Borborema;

Energisa S/A

Financial Result

Asset Sale/ Discontinued Operations

Taxes

Net Income 1Q16

 due to the extraordinary rate adjustment (RTE) applied to all concession operators in Brazil in March 2015, a single, one-off adjustment was made to revenue not billed that month in the amount of R$ 67.3 million (R$ 60.5 million before tax). Common in periods of rate rises, this adjustment occurred because the reading and invoicing cycles did not coincide with the calendar month, which raised uninvoiced revenue. If the above effects are disregarded the Adjusted EBITDA for 1Q16 is just 2.9% (R$ 11.7 million), less than the pro-forma Adjusted EBITDA recorded in 1Q15 of R$ 403.1 million.

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Energisa S/A | FACT SHEET - Results for the 1st quarter of 2016 | Re-presented In addition to this, the Adjusted EBITDA in 1Q16 was impacted adversely by:  The 1.9% contraction in captive sales, with an estimated impact on invoicing of R$ 42 million;  the material effects of the RTE and ordinary rate adjustments raised the average rate faced by consumers by approximately 23%, which increased consolidated invoicing by R$ 489 million, partly absorbed by higher sector charges

(R$ 220 million) and increases in CVA expenses (R$ 166 million), net of the aforesaid prior-year adjustments;  the increase of R$ 29.1 million in the provisions for contingencies and allowance for doubtful accounts between the quarters under scrutiny. The cash generation breaks down as shown in the table below: Quarter

Breakdown of cash generation (R$ million)

1Q16 (Re-presented)

(=) Consolidated net income (-) Income and social contribution taxes (-) Income and social contribution taxes about sale of assets (-) Financial income/expenses (-) Depreciation and amortization (=) Cash generation (EBITDA) (+) Net charges revenue (+) Equity in net income of subsidiaries and associated companies (=) Adjusted cash generation (Adjusted EBITDA) (-) Revenue from asset sale (=) Adjusted cash generation, without the effect of the sale of assets Adjusted EBITDA margin without the effect of the sale of assets (%)

124.5 (78.6) 26.2 (175.9) 352.8 38.6 391.4 391.4 14.0

Change 1Q15 276.7 20.6 (167.8) (343.5) (178.3) 945.7 52.2 (0.1) 997.8 488.2 509.6 18.4

%

R$ million

- 55.0 - 1.3 - 62.7 - 26.1 - 60.8 - 23.2 - 4.3 p.p.

- 152.2 - 99.2 + 167.8 + 369.7 + 2.4 - 592.9 - 13.6 + 0.1 - 606.4 - 488.2 - 118.2 -

See below the consolidated net income of Energisa and its subsidiaries by segment in 2015 and 2014: Net Income (R$ million) Electricity distribution segment  Energisa Sergipe  Energisa Paraíba  Energisa Mato Grosso do Sul  Energisa Mato Grosso  Energisa Tocantins  Vale Paranapanema  Nacional  Caiuá  Energisa Borborema  Força e Luz do Oeste  Energisa Nova Friburgo  Bragantina  Energisa Minas Gerais Sales and services  Energisa Comercializadora  Energisa Soluções  Outras operacionais Energisa Consolidated

Energisa S/A

Quarter 1Q16

Change 1Q15

%

R$ million

69.8 62.2 28.9 21.4 15.3 9.3 8.5 8.1 5.4 1.5 0.3 0.02 (0.6)

(4.0) 24.7 62.7 (2.3) 11.9 10.0 5.9 8.9 12.4 (2.7) 1.8 (1.1) 3.6

+ 151.8 - 53.9 + 28.6 - 7.0 + 44.1 - 9.0 - 56.5 - 83.3 -

+ 73.8 + 37.5 - 33.8 + 23.7 + 3.4 - 0.7 + 2.6 - 0.8 - 7.0 + 4.2 - 1.5 + 1.12 - 4.2

(3.0) 4.9 0.4 124.5

(1.7) (1.6) (0.2) 276.7

+ 76.5 - 55.0

- 1.3 + 6.5 + 0.6 - 152.2

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Energisa S/A | FACT SHEET - Results for the 1st quarter of 2016 | Re-presented Capital market 

Information about Energisa stock

Energisa’s shares are traded at BM&FBovespa under the following codes: ENGI3 (common shares), ENGI4 (preferred shares) and ENGI11 (Units, certificates Market Indexes

consisting of 1 common share and 4 preferred shares). See below market indicators for the end of March:

March/2016

Market Value (R$ million)

March/2015

Change %

4,070

2,976

10,671

8,997

+ 18.6

Dividend yield of ENGI11 (Units) - % (2)

5.0

6.4

- 1.4 p.p.

Market Value/Shareholders' Equity

1.8

1.4

+ 28.6

Enterprise Value (EV - R$ million) (1)

+ 36.8

(1) EV = Market value + net debt. (2) Proceedings paid out in the last four quarters / closing price of the Units.

Investments In the first quarter of 2016 (1Q16), Energisa and its subsidiaries invested R$ 302.7 million, compared with R$ 323.4 million in the same period the previous year, of which 74.9% (R$ 226.6 million) was made by the distribution companies acquired from Rede Group. The amount invested in the distribution companies acquired is Investments (R$ million) Energisa Mato Grosso Energisa Tocantins Energisa Mato Grosso do Sul Energisa Paraíba Energisa Sergipe Energisa Minas Gerais Energisa Borborema Caiuá Bragantina Energisa Soluções Nacional Vale Paranapanema Energisa Nova Friburgo Força e Luz do Oeste Ativos de geração alienados (*) Outras Total

28.1% (R$ 49.7 million) greater than that invested the same period the previous year. Energisa Mato Grosso was the distribution company making the greatest investment in the first three months of 2016 (R$ 119.6 million), followed by Energisa Tocantins (R$ 50.3 million) and Energisa Mato Grosso do Sul (R$ 43.0 million). Quarter 1Q16 119.6 50.3 43.0 35.3 18.9 8.0 6.4 4.9 4.2 2.8 1.8 1.9 1.5 0.9 3.2 302.7

Change 1Q15 80.3 44.1 37.6 35.4 14.2 10.5 4.9 4.0 4.2 9.9 3.4 2.4 1.5 0.9 68.5 1.6 323.4

% + 48.9 + 14.1 + 14.4 - 0.3 + 33.1 - 23.8 + 30.6 + 22.5 - 71.7 - 47.1 - 20.8 + 100.0 - 6.4

R$ million + 39.3 + 6.2 + 5.4 - 0.1 + 4.7 - 2.5 + 1.5 + 0.9 - 7.1 - 1.6 - 0.5 - 68.5 1.6 - 20.7

(*) Assets sold on March 31, 2015.

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Energisa S/A | FACT SHEET - Results for the 1st quarter of 2016 | Re-presented The Consolidated Income Statement of Energisa in 3 months ended March 31, 2016 and 2015 Description (R$ million)

1Q16

1Q15

Change %

Gross Operating Revenue

4,463.5

4,057.7

Net operating revenue

2,792.3

2,766.1

+ 0.9

418.6

378.2

+ 10.7

230.9

190.2

+ 21.4

38.9

28.0

+ 38.9

Controllable expenses 

Personnell (includes pension fund expenses)



Material



Services

Uncontrollable costs 

Electricity purchased for resale



Transmission of electricity

Depreciation and amortization

+ 10.0

148.8

160.0

- 7.0

1,654.1

1,651.8

+ 0.1

1,447.0

1,503.8

- 3.8

207.1

148.0

+ 39.9 - 1.3

175.9

178.3

Allowance for doubtful / contingencies

17.6

(11.5)

-

Other expenses / revenue

90.0

80.1

+ 12.4 + 23.4

Construction cost

259.2

210.0

2,615.4

2,486.9

+ 5.2

Result before net financial income (EBIT)

176.9

279.2

- 36.6

EBITDA

352.8

945.7

- 62.7

391.4

997.8

- 60.8

26.2

(343.5)

-

Financial revenue

255.6

240.7

+ 6.2

Financial expense

- 60.7

Total operating expenses

Adjusted EBITDA

(*)

Net financial income

(229.5)

(584.2)

Income before tax

203.1

(64.3)

-

Net Income

124.5

276.7

- 55.0

(*) EBIT + depreciation + later charges revenue fees.

Competitive Advantage

111 years’ experience in the electric utility sector, with considerable growth and financial health. Strong potential for growth. Energisa Group of companies operate in regions with high consumption growth, benefiting from the pick up of the economic growth and better income distribution in Brazil.

Management model based on monitoring economic, financial and operational indicators at all levels of the companies, in order to progressively improve each company’s performance, aligning it to the strategic guidelines and objectives laid down.

Contacts Maurício Perez Botelho CFO & Investor Relations Director E-mail: [email protected] Phone: + 55 (21) 2122-6904

Energisa S/A

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