2

IN 2Q18 ISA CTEEP PROGRESSES IN ITS GROWTH STRATEGY WITH THE ACQUISITION OF 2 LOTS IN AUCTION

Message from the Management The second quarter of 2018’s highlight was the Company’s strong cash generation. Regulatory net operating revenue amounted to R$ 739 million, regulatory adjusted EBITDA was R$ 683 million with a margin of 92.4%. ISA CTEEP reported a regulatory net income of R$ 342 million. ISA CTEEP monitors its business based on the following management pillars: Operations and Maintenance, Projects, Subsidiaries, Regulation, Legal and Growth. The management pillars rest on a business strategy with the end goal of sustainability. The Company has been reporting levels of excellence for each one of these pillars. In Operations and Maintenance, the goal is to develop activities with efficiency, quality and safety. In 2Q18, efficiency levels, which for many years have made ISA CTEEP a benchmark in the utilities sector, were maintained. The Company has presented organic growth through reinforcement and improvements Projects that seek to guarantee quality in the transmission service. In 2Q18, these investments totaled R$ 45 million. The portfolio in 2Q18 was in line with the Company’s forecasts. For sustainable growth, efforts have been directed to reach, continuously, higher efficiency with profitability. The management of the Subsidiaries prioritizes integration and the strengthening of the corporate governance model, which aims to align policies, processes, systems and practices, in addition to promoting greater control and financial discipline. The regulatory equity income result for the quarter was R$ 22 million. The goal of actively participating in Regulation consists in ensuring economic-financial equilibrium of the concession agreements based on the binomial of encouraging a competitive business environment and providing benefits to society. We have also monitored the proposal of the Law Project for Eletrobras’ privatization, which consolidates important conditions for the RBSE payment. In 2Q18 Homologation Resolution 2,408 was published, which establishes the Annual Revenue (“RAP”) for Cycle 2018/2019. RAP is maintained at R$ 2.4 billion (details in the “Subsequent Events” section). It is important to highlight the maintenance to receive RBSE and the linearization of the economic component for the next 5 years. In the Legal area, the Company reinforces its strategy that is focused in the reduction of contingencies. In 2Q18, it has presented a reversal of R$ 7.5 million due to the changes in the prospects for the outcome of civil and tributary lawsuits. The Company is an industry leader in the development of electric energy infrastructure projects throughout Brazil. Progress was made in Growth in the quarter with the acquisition of 2 lots in the ANEEL 02/2018 auction. Currently, the Company is implementing 10 new projects. In 2Q18, R$ 70 million was invested in these new subsidiaries. These represent a commitment to invest about R$ 2.9 billion in the domestic electricity grid and a 30% expansion in ISA CEEP’s current RAP (ex-RBSE). It is worth highlighting that the construction of the IE Itapura and IE Itaquerê subsidiaries began in May and July of 2018, respectively.

Connections that inspire the ISA CTEEP team and generate value over time.

The Management

3

São Paulo, July 31, 2018 – ISA CTEEP - Companhia de Transmissão de Energia Elétrica Paulista (“ISA CTEEP”, “Company”, B3: TRPL3 and TRPL4), announces its results for the second quarter of 2018 (2Q18) and the first half of the year (1H18). The Regulatory Results are shown in accordance with the accounting practices adopted in Brazil with the purpose of assisting with the understanding of the Company’s business. Additionally, the information has been prepared in accordance with the applicable CVM (Brazilian Securities and Exchange Commission) and CPC (Accounting Statements Committee) standards and in accordance with International Accounting Standards (IFRS) issued by the International Accounting Standard Board (IASB) in the “Attachments” section of this document.

Main Regulatory Indicators

(BRL million) 2Q18 2Q17 1H18 1H17

Net Revenue 739.4 263.3 1,471.7 530.9

Adjusted EBITDA¹ 682.9 193.4 1,366.9 410.8

Adjusted EBITDA Margin 92.4% 73.5% 18.9 b.p. 92.9% 77.4% 15.5 b.p.

Net Income 342.4 75.5 647.6 168.1

Net Margin 46.3% 28.7% 17.6 b.p. 44.0% 31.7% 12.3 b.p.

ROE² 14.1% 3.6% 10.5 b.p. 14.1% 3.6% 10.5 b.p.

285.2%

177.2%

232.7%

Chg (%)

Consolidated

² Considers the amount value of the last 12 months

353.7%

Chg (%)

180.9%

253.1%

¹ Excludes equity income and other non recurring effects and includes the Affiliate's EBITDA with the objective of presenting a more adequate vision of the Company's operational cash generation.

08.01.2018

Connection Data:

Other Countries: +1 646 828-8246

Rinaldo PecchioMichelle Lourenço CordaLúcia de Luiz CesariGabriela Rigo Bussotti

Investor Relations Contacts

Phone number:

+55 11 3138-7557

E-mail:

ri@cteep.com.br

2Q18 Conference Call

10:00 a.m. (BRT) / 9:00 a.m. (EDT)

Brazil: +55 11 3193-1001 / +55 11 2820-4001

Password: ISACTEEP

Link for webcast available on Investor Relations website: www.isacteep.com.br/ir

4

CONTENTS

1. ISA CTEEP1.1 ISA CTEEP 51.2 Shareholder Composition 61.3 Corporate Structure 71.4 Growth & Innovation 7

2. Operational Peformance 8

3. Financial Performance 93.1 Operational Revenue 93.2 O&M Costs and Expenses 103.3 Equity Income 113.4 EBITDA and Margin 123.5 Financial Results 133.6 Net Income 133.7 Comparison of Results (Regulatory vs. IFRS) 14

4. Dividends 15

5. Debt 15

6. CAPEX 17

7. Capital Market 18

8. Events during the Period 19

9. Subsequent Events 20

10. Other Relevant Information 2210.1 Concession Renewal - Contract 059/2001 (RBNI/RBSE) 2210.2 Main Legal Cases 24

10.2.1 Supplementary Retirement Plan – Law 4.819/58 2410.2.2 Collection Lawsuit: Eletrobrás against Eletropaulo and EPTE 25

11. Attachments 26

* Results in Excel spreadsheet available on the Investor Relations Website

5

ISA CTEEP

ISA CTEEP is the largest private company in transmission in the Brazilian electricity sector and is part of the National Interconnected System (“SIN”) which incorporates the Brazilian electricity grid as a whole (with the exception of some isolated systems) and serves approximately 99% of the system’s total load. Through its activities and its wholly and jointly-owned subsidiaries, ISA CTEEP is present in 17 states in the country, transmitting approximately 25% of all electricity produced in Brazil, 60% of the energy consumed in the Southeast region and nearly 100% of the energy in the State of São Paulo.

The coordination and control over the operations of the Company’s installations, and of all installations of generation and transmission of electric energy in the SIN, is the responsibility of the National Electric Energy System Operator (“ONS”), subject to the inspection and regulation of the National Electric Energy Agency (“ANEEL”).

On June 30, 2018, the installed capacity of the Company and its subsidiaries was 65.5 thousand MVA, 18.6 thousand kilometers of transmission lines, 25.8 thousand kilometers of circuits and 126 substations with voltage of up to 550 kV.

In light of an increasingly demanding market and its position in a major consuming center of the country as a whole, over the past 10 years, the Company has invested about R$ 10 billion in the expansion of the system and in the application of technologies capable of adding value to the operating and maintenance activities, guaranteeing efficiency and quality in the rendering of its transmission services.

Under construction

Substation

Line Entrance

TransmissionLines (TL)

In operation

6

Shareholder Composition

Controlled by ISA, a multi-latin, linear infrastructure systems company, ISA CTEEP has among its investors, Eletrobras, the largest Brazilian electric energy group.

Shareholders TRPL3 % TRPL4 % Total %

ISA Capital do Brasil 57,714,208 89.5% 1,286,132 1.3% 59,000,340 35.8%

Free Float 6,770,225 10.5% 98,950,261 98.7% 105,720,486 64.2%

Eletrobras 6,289,661 9.8% 52,005,758 51.9% 58,295,419 35.4%

Others 480,564 0.7% 46,944,503 46.8% 47,425,067 28.80%

Total 64,484,433 100% 100,236,393 100% 164,720,826 100%

52% of the Company’s shares is held by Brazilian investors and 48% belong to foreign investors.

United States of America5%

Brazil52%

Europe5%

Luxembourg: 2% of the Float Norway: 1% of the Float Great Britain: 1% of the Float France: 1% of the Float

Singapore1%

Australia1%

Colombia*36%

* Considers the stake of Isa Capital do Brasil, an investment vehicle of ISA Colombia for the acquisition of ISA CTEEP.

Distribution of Total Capital on 06/30/2018

7

Corporate Structure

ISA CTEEP’s corporate structure includes its wholly- and jointly-owned subsidiaries as shown below:

RAP ISA CTEEP

Cycle 2018/2019

(BRL million)

ISA CTEEP Operational São Paulo 2,421 2,421 ISA CTEEP 100% Fully consolidated

IE Madeira Operational Rondônia / SP 497 253 ISA CTEEP 51% / Furnas 24,5% / Chesf 24,5% Equity method

ERB1 Under construction Paraná 267 134 ISA CTEEP 50% / TAESA 50% Equity method

IE Paraguaçu Under construction Bahia / MG 107 53 ISA CTEEP 50% / TAESA 50% Equity method

IE Garanhuns Operational Pernambuco 87 44 ISA CTEEP 51% / Chesf 49% Equity method

IE Aimorés Under construction Minas Gerais 71 36 ISA CTEEP 50% / TAESA 50% Equity method

IE Pinheiros Operational São Paulo 54 54 ISA CTEEP 100% Fully consolidated

IE Serra do Japi Operational São Paulo 60 60 ISA CTEEP 100% Fully consolidated

IE Aguapeí Under construction São Paulo 54 54 ISA CTEEP 100% Fully consolidated

IE Itaúnas Under construction Espírito Santo 47 47 ISA CTEEP 100% Fully consolidated

IE Itaquerê Under construction São Paulo 46 46 ISA CTEEP 100% Fully consolidated

IENNE Operational Tocantins 44 44 ISA CTEEP 100% Fully consolidated

Lote 1³ Under construction Santa Catarina 38 38 ISA CTEEP 100% Fully consolidated

IE Tibagi Under construction SP / Paraná 18 18 ISA CTEEP 100% Fully consolidated

IE Sul² Operational Rio Grande do Sul 18 9 ISA CTEEP 100%2 Equity method²

IEMG Operational Minas Gerais 18 18 ISA CTEEP 100% Fully consolidated

Evrecy Operational Espírito Santo 7 7 ISA CTEEP 100% Fully consolidated

IE Itapura Under construction São Paulo 11 11 ISA CTEEP 100% Fully consolidated

Lote 10³ Under construction São Paulo 10 10 ISA CTEEP 100% Fully consolidated

Total 3,876 3,358

ConsolidationOperation Status¹ Location

RAP Cycle

2018/2019¹

(BRL million)

Share (%)

¹ RAP considers 100% of the project value. For projects under construction, considers offered RAP; ² Purchase Agreement for acquisition of 50% of the Capital Stock signed in April/18 . The closing of the operation is subject to approvals. Following conclusion the operation will be fully consolidated; ³ Successful bids for lots made at the ANEEL 02/2018 Transmission Auction.

Growth & Innovation

In an environment of rapid transformation of the utilities sector, innovation is key for success. Consequently, the Company continues to seek improvements in processes and absorb new technological resources as well as identify opportunities in new businesses in the long term. One of the growth fronts being evaluated by the Company is energy storage in batteries. In partnership with the University of São Paulo (“Universidade de São Paulo”), we are examining the possibility of implementing energy storage with the potential for developing complementary forms of operations in our network.

In addition, ISA CTEEP is constantly evaluating growth opportunities in the market, having recently made advances in this direction. The Company’s strategy consists in expanding its presence in Brazil through auctions and/or acquisitions with synergies with existent operations.

In line with its growth strategy and in accordance with the Material Fact published on April 6, 2018, ISA CTEEP signed a Share Purchase Agreement with Cymi Construções e Participações S.A. (“CYMI”) to acquire 50% of the capital stock in Interligação Elétrica Sul A.A. (“IE SUL”) for the amount of R$ 20 million. The conclusion of the acquisition is still subject to the approval and agreement of certain third parties. Once completed, the Company will assume full control of this subsidiary.

In the last two years, the Company has bid successfully for ten lots in ANEEL transmission auctions which will add 1.3 thousand kilometers of extension to its transmission lines with an addition of 7.5 thousand MVA to its portfolio. The new projects amount to an estimated CapEx of R$ 2.9 billion, representing an increase in RAP of approximately R$ 448 million, once all assets are operational.

The implementation of the projects is in line with the challenging estimated budget and timeframe, which builds in a reduction in CapEx and the start up ahead of schedule.

The IE Itapura and IE Itaquerê subsidiaries, both wholly-owned by ISA CTEEP, began their construction in May and July 2018, respectively, according to the established schedule.

8

IE Paraguaçú(Lot 3)

50%Bahia

Minas Gerais255 0.0% 53 Real Profit Feb/17 Feb/22 Jan/192 3Q19

IE Aimorés (Lot 4)

50% Minas Gerais 171 0.0% 36 Real Profit Feb/17 Feb/22 Jan/192 3Q19

IE Itaúnas (Lot 21)

100% Espírito Santo 298 25.1% 47 Presumed Profit Feb/17 Feb/22 Jul/18 3Q18

ERB1(Lot 1)

50% Paraná 968 33.2% 134 Real Profit Aug/17 Aug/22 Feb/213 1Q20

IE Tibagi(Lot 5)

100%São Paulo

Paraná135 32.2% 18 Presumed Profit Aug/17 Aug/21 Jan/17 �

IE Itaquerê(Lot 6)

100% São Paulo 398 44.5% 46 Presumed Profit Aug/17 Aug/21 Jun/18 �

IE Itapura(Lot 25)

100% São Paulo 126 57.6% 11 Presumed Profit Aug/17 Feb/21 Jan/20 �

IE Aguapeí(Lot 29)

100% São Paulo 602 52.7% 54 Presumed Profit Aug/17 Aug/21 Dec/21 1Q19

Lot 1 100%Santa

Catarina641 66.7% 38 Presumed Profit Sep/18 Sep/23 Sep/214 N/A

Lot 10 100% São Paulo 238 73.9% 10 Presumed Profit Sep/18 Sep/22 Sep/214 N/A

3,831 447

¹ According to concession contract² Conditioned to Lot 2 (Alupar)

³ To receive the totality of RAP4 According to draft of concession contract

Total

Profit RegimeContract signature

Implementation Deadline ANEEL

Environmental License (LI)

Auctions Subsidiaries% ISA CTEEP

Location

ANEEL CAPEXISA CTEEP

Participation(BRL MM)

RAP ISA CTEEP

(BRL MM)

Auction02/2018

06/29/2018

Discount Necessity Date¹

Auction 03/2015¹

10/28/2016

Auction 05/2016

04/24/2017

OPERATIONAL PERFORMANCE

ISA CTEEP is a benchmark in the sector in terms of performance and constantly pursues improved levels of efficiency, closely tracking operating indicators. Among these, of particular importance is the Index of Not Supplied Energy (IENS), representing the percentage between the total amount of not supplied energy during all events in the year and the total energy demanded that was supplied by the Company. In 1H18, IENS totaled 2.92 x10-6.

ISA CTEEP is remunerated according to the availability of its assets through the Annual Allowed Revenue (RAP). This means that any downtime involving its assets may incur in a loss of RAP through a discount in verified revenue (Variable Parcel – PV).

9

FINANCIAL PERFORMANCE (Regulatory Results)

Operational Revenue

In 2Q18, consolidated gross operational revenue was R$ 844.2 million, an increase of 174.8% compared to 2Q17. In 1H18, revenue increased in R$ 1.1 billion compared to 1H17.

The increase in gross revenue for both periods is mainly due to the start in RBSE payments in July 2017 (with a cash flow impact in August 2017). The variation in the IPCA inflation index applied to O&M revenue and the startup of the new projects on reinforcements and improvements also contributed to this increase.

Operational Revenue

(BRL million) 2Q18 2Q17 Chg (%) 1H18 1H17 Chg (%)

Availability of Electric Network 340.1 301.0 13.0% 673.9 605.3 11.3%

O&M Revenue 242.9 232.6 4.4% 477.9 469.6 1.8%

CAAE¹ Revenue 97.2 68.4 42.2% 196.0 135.7 44.5%

RBSE 497.3 0.0 - 991.4 0.0 -

Others 6.8 6.2 9.3% 13.5 13.4 0.7%

Gross Revenue 844.2 307.2 174.8% 1,678.8 618.7 171.3%

Deductions (104.8) (44.0) 138.3% (207.1) (87.8) 135.8%

Net Revenue 739.4 263.3 180.9% 1,471.7 530.9 177.2%

¹ Annual cost of electric assets (Net investment x Regulatory WACC + Gross investment x Depreciation)

Consolidated

The deductions from gross revenue relate to taxes (PIS/COFINS) and regulatory charges (CDE, RGR, P&D, PROINFA and Inspection Fee) which reached R$ 104.8 million in 2Q18 and R$ 207.1 million in 1H18. The increase in relation to previous periods is explained by the PIS and COFINS charges on revenue from the RBSE payment, totaling R$ 46.0 million in the quarter and R$ 91.7 million in the semester.

Consolidated net operational revenue amounted to R$ 739.4 million and R$ 1.5 billion in 2Q18 and 1H18, respectively. The first RBSE receivable cycle terminated in June 2018 (2017/2018 Cycle) and totaled R$ 1.6 billion. The additional R$ 100 million will be adjusted on the occasion of the next cycle, through the adjustment parcel (PA) as established in Ratification Resolution 2,408/2018.

2Q18 Net Revenue

739.4

Deductions2Q18 Gross Revenue

844.2

CDE andPROINFA

11.9

104.8

PV andAnticipation

9.9

28.8

O&M

8.9

CAAE

307.2

497.3

2Q17 Gross Revenue

RBSE

+ R$ 537 million

10

O&M Costs and Expenses

Costs and Expenses

(BRL million) 2Q18 2Q17 Chg (%) 1H18 1H17 Chg (%)

Personnel (79.4) (72.0) 10.4% (157.2) (147.6) 6.5%

Material (3.4) (2.5) 34.7% (6.4) (4.9) 30.1%

Services (28.5) (29.4) -3.1% (55.9) (53.1) 5.2%

Contingencies 7.5 14.4 -48.2% 5.6 11.6 -52.0%

Others (18.1) (16.0) 12.7% (22.0) (31.9) -31.2%

Sub Total (121.9) (105.5) 15.5% (235.8) (225.8) 4.4%

Depreciation (144.7) (18.4) 685.5% (290.5) (34.8) 735.9%

Total (266.6) (123.9) 115.1% (526.3) (260.6) 102.0%

Consolidated

Costs and expenses, ex-depreciation, recorded an increase of 15.5% in 2Q18 vs. 2Q17. The variation in the quarter reflects mainly:

(i) the increase in personnel expenditure of R$ 7.5 million due to a wage bargaining agreement starting in June 2017 (3.6%) and by the lower capitalization of payroll expenses in the projects;

(ii) higher expenses with materials for the maintenance of operational assets as well as the inclusion of the costs of the IENNE subsidiary in the consolidation;

(iii) the lower reversal of contingencies of R$ 7.5 million (non-recurring) in 2Q18. as a result of changes in the prospects for the outcome of civil and tributary lawsuits.

In 1H18, costs, ex-depreciation, amounted to R$ 235.8 million, an increase of 4.4% compared to 1H17 (R$ 225.8 million).

Total administrative and O&M expenses and costs in 2Q18 reported an increase of 115.1% in relation to 2Q17, reaching R$ 266.6 million. In 1H18, this amount was R$ 526.3 million vs. R$ 260.6 million reported in 1H17 (+102%). Both variations are mainly due to the recognition of the depreciation regarding the RBSE payment, based on amortization in 96 installments (8 years) of the depreciation amount held back between January 2013 and June 2017 in the amount of R$ 120.1 million in the quarter and R$ 241.7 million in the semester.

11

Equity Income

Equity income in 2Q18 reported revenue of R$ 22.4 million, an increase of R$ 27.5 year-on-year. This increase is explained largely by the loss recorded at IE Madeira in 2Q17 with the booking of the negative adjustment parcel of R$ 44.1 million regarding the restitution of the RAP billed in the period for executing tests on the subsidiary’s two lots.

The decline in the results from IE Garanhuns reflects the negative impact of the tariff reset, which changed its WACC from 6.61% to 4.62%.

The registered amount for the IE Aimorés, IE Paraguaçú and ERB1 subsidiaries is related to administrative expenses in the pre-operational phase of the projects.

In the first half of 2018, equity income totaled R$ 41.8 million, an increase of 237% compared to the same period of 2017.

0.0

10.7

1.9

2Q18

22.4

0.74.3

17.9

2Q17

-5.1

0.25.4

-10.4

+542%

+237%

1H18

41.8

1.3

7.0

34.4

1H17

12.4

IE Aimorés/IE Paraguaçú/ERB1IENNE/IE SulIE GaranhunsIE Madeira

12

EBITDA and Margin

In accordance with ICVM 527/12, the consolidated EBITDA reached R$ 640 million in 2Q18, an increase of R$ 489.2 million compared to EBITDA in 2Q17. In 1H18, the ICVM EBITDA amounted to R$ 1.3 billion, an increase of R$ 966.9 million in relation to 1H17. Both results largely reflect the RBSE receivables as of 3Q17.

To reflect more adequately operating cash generation, the Company shows an Adjusted EBITDA totaling R$ 682.9 million and a margin of 92.4% in 2Q18 and R$ 1.4 billion with a margin of 92.9% in 1H18. Adjusted EBITDA excludes equity income and other non-recurring and/or non-cash effects as well as including the EBITDA of the jointly held subsidiaries (weighted according to ISA CTEEP’s stake).

2Q18 2Q17 1H18 1H17

Net income (losses) 342.4 75.5 647.6 168.1

Income and Social Contribution Taxes (tax over income) 126.6 29.9 282.8 56.4

Net financial result 25.7 26.4 61.0 55.7

Depreciation and amortization 145.3 19.1 291.7 36.0

EBITDA ICVM 527/12 640.0 150.8 1,283.1 316.2

Affiliates EBITDA (weighted by ISA CTEEP's share) 70.5 49.1 140.4 117.8

Equity Income (22.4) 5.1 (41.8) (12.4)

Others¹ (5.2) (11.6) (14.9) (10.8)

Adjusted EBITDA 682.9 193.4 1,366.9 410.8

Adjusted EBITDA Margin 92.4% 73.5% 18.9 b.p 92.9% 77.4% 15.5 b.p

RBSE (451.3) 0.0 (899.7) 0.0

Adjusted EBITDA Ex-RBSE 231.6 193.4 467.1 410.8

Adjusted EBITDA Ex-RBSE Margin 80.4% 73.5% 8.2 b.p 81.7% 77.4% (6.5) b.p

43.7%

-542.4%

-55.4%

EBITDA

(BRL million) Chg (%)

353.7%

324.0%

-2.8%

662.6%

324.4%

Chg (%)

¹ includes tax compensation (from "IPTU"), expenses with auctions and contingencies success fees

-

253.1%

19.8% 13.7%

Consolidated

19.2%

236.6%

38.2%

232.7%

-

285.2%

401.6%

9.5%

711.1%

305.8%

13

Financial Result

The financial result reported an expense of R$ 25.7 million in 2Q18, a reduction of R$ 0.7 million in relation to 2Q17 and explained mainly by:

(i) the increase of revenue in R$ 7.1 million in income from financial investments in light of higher cash balances in 2Q18 vs. 2Q17;

(ii) a reduction in expenses with interest payments of R$ 1.8 million under the PERT tax amnesty program in 3Q17; partially compensated by:

(iii) an increase in expenses with interest and charges on loans amounting to R$ 8.0 million, due to the Company’s higher level of debt, which rose from R$ 1.3 billion in 2Q17 to R$ 2.5 billion in 2Q18;

(iv) by the increase of expenses in the “Others” line, mainly due to the recognition of the swap operation linked to the Law 4,131 loan.

In 1H18, the financial result reported expenses of R$ 61.0 million, an increase of R$ 5.3 million compared to 1H17.

Financial Result

(BRL million) 2Q18 2Q17 Chg (%) 1H18 1H17 Chg (%)

Financial investment income 18.3 11.2 63.1% 29.2 21.5 35.9%

Monetary net variations (6.4) (8.6) (25.5%) (17.7) (16.4) 7.6%

Interest costs (0.6) (2.3) (75.1%) (1.2) (8.3) (86.0%)

Interest and charges on loans (35.1) (27.1) 29.5% (66.8) (52.2) 27.8%

Others (2.0) 0.3 (774.2%) (4.7) (0.3) 1362.9%

Total (25.7) (26.4) (2.8%) (61.0) (55.7) 9.5%

Consolidated

Net Income

The increase in net income for 2Q18 and 1H18 was driven by the settlement of RBSE receivables.

648

168

342

75

+285%

+354%

1H182Q18 1H172Q17

14

Comparison of Results (Regulatory vs. IFRS)

In IFRS, revenue related to investments which are realized over the course of the concession agreement are registered as a financial asset, generating construction revenue and costs regarding the implementation of infrastructure. The restatement of the financial asset generates revenue from remuneration of the infrastructure. In Regulatory accounting, investments are treated as fixed assets and are depreciated according to their useful life, and the RAP according to invoiced amounts spread over the term of the concession.

The main variations between the consolidated result via IFRS and Regulatory standards are shown as follows:

Consolidated DRE (BRL million) Regulatory IFRS Regulatory IFRS

IFRS vs. Regulatory 2Q18 2Q18 1H18 1H17

Gross Revenue 844 666 178 1,679 1,293 386

O&M Revenue 243 243 0 478 478 0

CAAE Revenue (Annual Cost of Electric Assets) 97 0 97 196 0 196

Infrastructure Revenue 0 113 -113 0 194 -194

Concession Asset Revenue 0 99 -99 0 193 -193

RBSE Revenue 497 204 293 991 415 577

Other Revenue 7 7 0 14 14 0

Deductions -105 -85 -20 -207 -166 -41

Net Revenue 739 581 159 1,472 1,127 345

Infrastructure Costs - -107 107 - -182 182

Costs of O&M and General Expenses -122 -121 -1 -236 -234 -2

Depreciation -145 -2 -142 -290 -4 -286

EBIT 473 351 122 945 707 239

Equity Income 22 27 -4 42 48 -6

Other Opertional Revenues (expenses) -1 0 -1 4 5 -1

Result Before Financial Result and Taxes 495 378 117 991 759 233

Financial Result -26 -26 0 -61 -61 0

IR & CSLL -127 -104 -23 -283 -209 -73Net Income before Participation of Non

Controlling Shareholder342 248 94 648 488 159

Participation of Non Controlling Shareholder -3 -3 0 -7 -7 0

Consolidated Income/Losses 339 245 94 641 482 159

Change Change

Revenue: IFRS considers revenue from the installation of infrastructure and recognizes this over time as incurred expenditures. Revenue from the remuneration of concession assets is considered as financial revenue, recognized by the effective rate of interest on the principal amount, of which, the interest rate is exactly equal to the receipt of future cash calculated over the estimated life of the financial asset at the initial booked amount of this asset. In the case of the Regulatory Result, revenue is recognized at its invoiced amount (RAP). Costs: In IFRS, the costs of implementing infrastructure do not have an impact on the result, given that the results are neutralized by revenue from the implementation of infrastructure which is calculated by adding the rates of PIS and COFINS taxes and other charges at the value of investment cost. Depreciation: In IFRS, the concession asset is not considered a fixed asset but rather a financial asset. In IFRS, fixed assets relate largely to assets used by the Company that are not linked to the concession agreement. In the case of the Regulatory Result, the concession asset is deemed a fixed asset with its respective depreciation. Equity Income: The main effects of equity income are the same as those explained under revenue, costs and depreciation, as explained above. Income Tax/Social Contribution: In IFRS, IT/SC are provisioned monthly on an accrual basis and calculated pursuant to Law 12,973/14. The Company adopts real earnings methodology with a monthly estimate while the subsidiaries adopt the quarterly presumed profit regime. The effective consolidated (IFRS) rate for 2Q18 was 29.5% and in 1H18 it was 30.0%. In the Regulatory result, the effective tax rate was 25.6% in the quarter and 29.7% in the semester in order to equalize expectations of tax payments for the current year.

15

DIVIDENDS

Under the Company’s Corporate Bylaws, ISA CTEEP is committed to paying a minimum dividend between R$ 359 million and 25% of the fiscal year’s net income, whichever is the highest. Additionally, extraordinary dividends may be distributed. On May 30, 2018, the Company’s Board of Directors approved the distribution of interim dividends based on the retained profits reserve in the amount of R$ 760 million, equivalent to R$ 4.615728 per share. The shares began trading ex-dividends as of June 06 and payout took place on June 18. In June of 2018, management announced a dividend payment policy to the market, proposing to distribute at least 75% of regulatory net income (used as a cash generation proxy) subject to shareholders’ approval in Shareholder’s Meeting, limited to a ceiling on leverage of 3.0x Net Debt/EBITDA, with the possibility of interim dividend payment, according to the Company’s Bylaws.

DEBT

The Company’s low leverage will provide a scope for financing of the growth cycle forecast for the next few years. In the second quarter of 2018, gross debt posted an increase following the 7th issuance of green bonds (debentures) for R$ 621 million, expiring in 2025. Net debt also reported an increase of 27.9% in the period due to the payment of interim dividends.

Debt

BRL (million)

Gross Debt 2,547.9 1,943.0 31.1%

Short-term Debt 470.6 451.4 4.2%

Long-term Debt 2,077.3 1,491.5 39.3%

Consolidated Availabilities 850.9 616.7 38.0%

Availabilities of ISA CTEEP and Subsidiaries 638.2 401.7 58.9%

Availabilities of Partially Owned Subsidiaries* 212.7 214.9 -1.0%

Consolidated Net Debt 1,697.0 1,326.3 27.9%

*The Company's resources are concentrated in exclusive investment funds, which are also used for the subsidiaries and partially owned subsidiaries in a segregated manner, and refer to quotes of the investment funds with high liquidity, conversible in cash, regardless of the expiration of the assets in which they are allocated.

06/30/2018 12/31/2017 Chg (%)

16

23%

64%

13%

BNDES - TJLP Debentures - CDI/IPCA Others

The Company is in compliance with established covenants and requirements for all issues. For the years 2018, 2019 and 2020, the Net Debt/EBITDA index was of 3.0x. Greater details on financial indicators are available in Attachment V of this document.

The average cost of consolidated debt was 7.86% p.a. on June 30, 2018, slightly below the costs reported for 1Q18. The IPCA inflation index for the past 12 months was 2.86% and the annualized CDI (Interbank Deposit Rate) for June was 6.39%. The average term of the consolidated debt on June 30, 2018 was of 3.6 years.

On May 04, 2018, the Company concluded its 7th debenture issuance amounting to R$ 621 million, expiring in 2025. The amount will be restated at the IPCA inflation index. On top of the corrected amount of the debentures, an annual interest rate of 4.70% will be applied on the basis of a 252-day year, calculated exponentially and cumulatively pro rata temporis from the first subscription and paying in date until effective payment of principal. Remuneration will be paid semi-annually as from issue date, always on the 15th day of the months of October and April with the first payment on October 15, 2018 and the last, on the expiry date of the debentures on April 15, 2025.

This is the transmission sector’s first issue to be classified under the Green Bond category in the Brazilian Capital Markets. The issue is based on the Company’s satisfactory socio-environmental performance, evaluated by an independent specialized consultancy, and reflecting ISA CTEEP’s contribution to renewable energy transmission.

The issuance’s resources are being deployed as capital injections at ERB1, IE Aguapei, IE Aimorés, IE Itapura, IE Itaquerê, IE Itaúnas, IE Paraguaçú and IE Tibagi - the result of successful bids at auctions held between October 2016 and April 2017, held between 2017 and 2019 by means of capital contribution. With this issue, ISA CTEEP reinforces its strategy of seeking competitive sources of finance in addition to its commitment to sustainability.

Debt Contracting and Indexation 06/30/2018

Debt Amortization Schedule (BRL million)

17

CAPEX

ISA CTEEP and its wholly and jointly-owned subsidiaries invested R$ 136.7 million in 2Q18, 63.4% more than the amount reported for 2Q17. The variation is explained principally by:

(i) R$ 70.3 million invested in pre-operational subsidiaries as well as the payment for environmental licensing fees and land-related negotiations. Investments in the pre-operational subsidiaries are in line with the challenging budget and schedule that has been set. It is worth noting that the main investment flows of these subsidiaries will occur in the 3rd and 4th year of their respective construction periods;

(ii) R$ 45.0 million invested in reinforcements and improvements which generate additional revenue for the Company from organic growth. The investments in reinforcements and improvements are in line with the established budget. The investments are not comparable between periods since they involve distinct project portfolios and depend on the issuance of Authorization Resolutions by ANEEL; and,

(iii) R$ 21.4 million invested in operational subsidiaries. Growth of investments at the operational subsidiaries reflects mainly the additional CapEx at IE Madeira for the solution of pending issues.

In the first half of 2018, investments totaled R$ 234 million (+ 82.7% vs. 1H17).

CAPEX

(BRL million) 2Q18 2Q17 Chg (%) 1H18 1H17 Chg (%)

ISA CTEEP (Reinforcements/Improvements) 45.0 52.2 -13.9% 64.5 94.7 -31.9%

Total Subsidiaries 91.7 31.4 191.8% 169.5 33.4 407.9%

Operational 21.4 31.4 -31.9% 27.7 33.2 -16.6%

Pre-operational 70.3 - - 141.9 0.2 -

Total 136.7 83.7 63.4% 234.0 128.1 82.7%

Note: Realized investments are demonstrated in the competence vision

18

CAPITAL MARKETS

ISA CTEEP has common (“TRPL3”) and preferred shares (“TRPL4”) listed and traded on the São Paulo Stock Exchange (“B3”) and since 2002 listed under Level 1 of the Corporate Governance segment, thereby enhancing values of ethics and transparency in the relationship with its shareholders and other stakeholders. The Company’s shares integrate several stock indexes, such as, the Corporate Governance Index (“IGCT”), in which companies with differentiated standards of corporate governance are listed, and the Brazil 100 Index (“IBrX 100”), comprising companies with the most traded equities in B3. Additionally, the Company participates in an American Depositary Receipts (“ADRs”) program – Rule 144A in the United States under the “CTPTY” (common share) and “CTPZY” (preferred share) symbols.

The closing prices of ISA CTEEP’s common and preferred equities for the second quarter were R$ 58.00 and R$ 57.95, respectively. The Company’s market capitalization on June 30, 2018 was R$ 9.5 billion.

For the 12 month period ending June 30, 2018, ISA CTEEP’s preferred shares reported an annual daily trading volume on B3 of R$ 21.8 million, with an average of two thousand trades of TRPL4 per day.

Performance (base 100)

-20%

-10%

0%

10%

20%

30%

40%

Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

TRPL3 TRPL4 IBOVESPA IEEX

1.2%

15.7%

0.6%

2.9%

19

EVENTS DURING THE PERIOD

ANEEL 02/2018 Transmission Auction On June 28, 2018, ISA CTEEP successfully bid for 2 lots tendered at the National Electric Energy Agency’s (“ANEEL”) 02/2018 Transmission Auction:

ISA CTEEP and Transmissora Aliança de Energia Elétrica S.A (“TAESA”) constituted the Columbia Consortium (originally with equal stakes of 50% for each partner) to bid for certain lots in this Auction. Within the scope of the Columbia Consortium, ISA CTEEP conducted studies on the technical conditions and economic-financial viability of Lot 01 with the support of external consultants in line with the best standards of corporate governance, sustainability and risk management as the Company does when developing and analyzing projects. Prior to the auction, ISA CTEEP and TAESA agreed to TAESA’s Notice of Withdrawal for Lot 01. Additionally, the Company decided similarily to present a Notice of Withdrawal for Lot 19. Documents pertaining to the association between the Company and TAESA for the formation of the Columbia Consortium, already built escape mechanisms for the withdrawal of one of the partners, in this case to take place once the applicable prior agreements are obtained. ISA CTEEP reaffirms its commitment to value creation with projects that will contribute to the expansion of the electric transmission grid in Brazil. Resources for the installation of the projects will be obtained through capital injections from the shareholders and the projects will seek financial support from the National Brazilian Social and Economic Development Bank (BNDES), the capital markets through Infrastructure Debenture issuance and other sources of available financing. In addition, the projects may have synergies with the Company’s existing operations. The recent successful bids are part of ISA CTEEP’s strategy for sustainable growth through investments in the implementation of infrastructure and the operation of new projects. Beginning of IE Itapura’s construction

IE Itapura, ISA CTEEP’s wholly-owned subsidiary, which was set up following the successful bid at the transmission auction in April 2017, began its construction in the month of May. ANEEL’s estimated investment for the project is R$ 126 million with a RAP of R$ 11 million, consisting in the installation of a 440kV (-125/+250) MVAr. The installation of this equipment benefits the national grid system as a whole and more especially, the voltage control of the 440 kV grid in the state of São Paulo. The regulatory deadline stipulated by ANEEL for IE Itapura’s to start up is February 2021.

Acquisition of IE Sul

In April 2018, ISA CTEEP signed a Purchase Agreement with Cymi Construções e Participações S.A. (“CYMI”) for the acquisition of 50.00% less one share of the total capital stock of Interligação Elétrica Sul S.A. (“IE SUL”). The acquisition is worth an aggregate cash amount of R$ 20 million, restated at the IPCA/IBGE on the closing of the operation. The conclusion of the operation and the effective acquisition will be subject to certain conditions enshrined in the agreement such as the approval of ANEEL for the transfer of the shares, the approval of BNDES and the analysis of the Brazilian anti-trust authority - CADE. Currently, only the approval of BNDES is pending for the conclusion of the operation. Once the operation is finalized, the Company will hold shares representing 100% of IE SUL’s capital stock.

20

SUBSEQUENT EVENTS

Annual RAP Readjustment

Ratification Resolution (REH) 2,408 was published on June 28, 2018 establishing new RAPs for ISA CTEEP and its Subsidiaries for the availability of the transmission installations to members of the Basic Network and of the Other Transmission Installations for the 12 month Cycle comprising the period from July 1, 2018 to June 30, 2019 (2018/2019 Cycle).

Pursuant to REH 2,408, the RAP and the amounts corresponding to the adjustment parcel (PA) of ISA CTEEP for Agreement 059/2001, net of PIS and COFINS, has now been set at R$ 2,421.1 million for the 2018/2019 Cycle compared with R$ 2,428.0 million for the preceding Cycle. The breakdown of the RAP for this Cycle may be explained by:

i. monetary restatement1 of the 2018/2019 Cycle (IPCA) totaling R$ 70.0 million which includes the restated amount of R$ 44.2 million on the tranche of the RBSE receivable;

ii. operational startup of new reinforcement and improvement projects during the 2017/2018 Cycle adding a further R$ 60.5 million to RAP, of which approximately 73% from energized projects in the Basic Network - RB and 27% from Other Transmission Installations – DIT;

iii. reduction of R$ 135.4 million with respect to the RBSE payment. This reduction is mainly due to the new definition for linearizing receivables of the economic component for the next five years in the amount of R$ 150 million, partially compensated by the adjustment of items considered by ANEEL as totally depreciated and which were adjusted for this Cycle and where the corresponding renumeration (WACC) was received (+ R$ 15 million);

iv. negative adjustment parcel of R$ 31.5 million largely reflecting: (a) reimbursement due to the anticipation of the RAP (+ R$ 95.0 million); partially compensated, (b) by the retroactive receipt of reinforcements and improvements (+ R$ 32.5 million), (c) by the reimbursement for the cost of implementation of the property control manual (+ R$ 20.7 million), and (d) by the adjustment in the value of the RBSE report (+ R$ 15.0 million) as explained in the preceding item.

Total RAP of the wholly-owned subsidiaries IEMG, IE Pinheiros, IE Serra do Japi, Evrecy and IENNE, net of PIS and COFINS, was R$ 184.8 million for the 2017/2018 Cycle, and is now set at R$ 183.2 million for the 2018/2019 Cycle. The reduction of R$ 1.0 million is mainly due to the periodic tariff revision (RTP) for IENNE and Evrecy.

Evrecy’s RTP considered the revision of the asset base with the writing off of total depreciated items, which had a 17% (- R$ 2.4 million) impact on the Cycle. In addition, the adjustment parcel had a negative impact of R$ 4.6 million due to the recalculation of the RAP in light of a realized reinforcement and the retroactive effects of the periodic tariff revision, which should have happened in 2017, but are only now being incorporated in the 2018/2019 Cycle. Consequently, RAP has decreased from R$ 14.1 million to R$ 7.1 million for the 2018/2019 Cycle.

At the IENNE subsidiary, the periodic tariff reset restates the cost of third party capital and the WACC was changed from 6.83% to 6.41%, with a negative impact on revenue of R$ 1 million. The adjustment parcel had a negative impact of R$ 1.6 million. As a result, the RAP was reduced from R$ 45.5 million to R$ 44.2 million for the 2018/2019 Cycle.

The RAP and the values which correspond to the adjustment parcel for the jointly-owned subsidiaries of IE Madeira, IE Garanhus and IE Sul, net of PIS and COFINS, which totaled R$ 615.3 million for the 2017/2018 Cycle, were reduced by R$ 13.6 million to R$ 601.7 million in the 2018/2019 Cycle.

This reduction is largely explained by the negative adjustment parcel of R$ 66.5 million due to the reimbursement of the RAP relative to IE Madeira’s 015/2009 contract, of which R$ 59.6 million relates to the cancellation of the

1 The accumulated IPCA and IGPM for the period from June 2017 and May 2018 were 2.86% and 4.26%, respectively.

21

Provisional Release Instrument (Termo de Liberação Provisório - TLP) in the period from March 13, 2015 to June 20, 2013. This amount is partially compensated by the positive adjustment parcel of R$ 3.3 million for IE Madeira’s 013/2009 contract, due to the reimbursement of 17 days discounted in error for the 2016/2017 Cycle, in the amount of R$ 14.3 million .

RAP Cycle 2017/2018

RAP Cycle 2018/2019

REH 2,258 REH 2,408ISA CTEEP 905.1 25.8 60.5 0.0 991.4 959.9ISA CTEEP - RBSE 1,552.4 44.2 0.0 (135.4) 1,461.2 1,461.2Total 2,457.5 70.0 60.5 (135.4) 2,452.6 (31.5) 2,421.1

RAP Cycle 2017/2018

RAP Cycle 2018/2019

REH 2.258 REH 2.408IEMG 004/2007 IPCA 18.3 0.5 0.0 0.0 18.8 (0.7) 18.1EVRECY 020/2008 IGP-M 14.1 0.6 0.0 (3.0) 11.7 (4.6) 7.1

012/2008 11.1 0.4 0.0 0.0 11.5 (0.7) 10.8015/2008 35.7 1.0 0.0 0.0 36.7 (1.9) 34.8018/2008 6.0 0.2 0.0 0.0 6.2 (0.2) 6.0021/2011 5.5 0.2 0.0 0.0 5.7 (3.3) 2.4026/2009 IPCA 39.5 1.2 0.0 0.0 40.7 (3.4) 37.3143/2001 IGP-M 22.3 1.0 0.0 0.0 23.3 (0.9) 22.4

IENNE 001/2008 IPCA 45.5 1.3 0.0 (1.0) 45.8 (1.6) 44.2Total 198.1 6.4 0.0 (4.0) 200.5 (17.3) 183.2

Total Consolidated ISA CTEEP 2,655.6 76.4 60.5 2,653.1 (48.8) 2,604.2

RAP Cycle 2017/2018

RAP Cycle 2018/2019

REH 2.258 REH 2.408013/2008 6.1 0.2 0.0 0.0 6.4 (0.2) 6.2016/2008 12.9 0.4 0.0 0.0 13.3 (1.6) 11.7013/2009 292.1 8.3 0.0 0.0 300.4 3.3 303.7015/2009 252.4 7.2 0.0 0.0 259.6 (66.5) 193.1

IEGARANHUNS (51% ISA CTEEP) 022/2011 IPCA 87.3 2.7 0.0 0.0 90.0 (2.9) 87.1Total 650.8 18.7 0.0 0.0 669.6 (67.9) 601.7

PARAP Cycle 2018/2019

IESUL (50% ISA CTEEP) IPCA

IEMADEIRA (51% ISA CTEEP) IPCA

DealershipBRL million

Contract Index InflationReinforcements & Improvements

RTP

JOINTLY OWNED SUBSIDIARIES

059/2001 IPCA (31.5)

WHOLLY OWNED SUBSIDIARIES (100% ISA CTEEP)

DealershipBRL million

Contract Index InflationReinforcements & Improvements

RTP PARAP Cycle 2018/2019

IE PINHEIROS IPCA

IEJAPI

COMPANY

DealershipBRL million

Contract Index InflationReinforcements & Improvements

RBSE PARAP Cycle 2018/2019

Note: RAP is net of PIS/COFINS and includes regulatory charges

22

Start on construction work at IE Itaquerê

IE Itaquerê, a wholly-owned subsidiary of ISA CTEEP, constituted following the successful bid at the transmission auction by the Company in April 2017, began its construction in July. The investment envisioned by ANEEL is R$ 398 million with a RAP of R$ 46 million. The project is formed by the Araraquara 2 substation and involves the installation of three 500 kV (-180/+300) MVAr synchronous compensators. The installation of this equipment in the substation will benefit the national interconnected grid and more particularly, voltage control of the 440 and 500 kV systems in the state of São Paulo. The deadline established by ANEEL for the start up is August 2021.

IE Tibagi obtains Installment License

IE Tibagi, a wholly-owned subsidiary of ISA CTEEP, constituted from the successful bid at the transmission auction by the Company in April 2017, obtained its Installment License (“LI”) from the Brazilian Institute of the Environment and Natural Renewable Resources (“IBAMA”). The investment envisioned by ANEEL is R$ 135 million, with a RAP of R$ 18 million. The project is formed by the implementation of the 230 kV transmission line that goes from Nova Porto Primavera (PR) to Rosana (SP) and the amplification of the 230/138 kV substation in Rosana, which will connect to the substation in Nova Porto Primavera. With the LI, the construction of the project may initiate. ANEEL’s defined deadline for the start up is August 2022.

Settlement of Law 4,131 Credit Agreement On July 17, 2017, the Company settled the Credit Agreement contract with the Bank of Tokyo-Mitsubishi UFJ LTD under Law 4,131 of September 03, 1962 for the amount of USD 50 million at currency variation (VC) + Libor 3M + 0.28% p.a + Income Tax. Additionally, a Swap instrument was also contracted. The Swap instrument that was signed with Banco de Tokyo-Mitsubishi UFJ Brasil considers the notional value of R$ 160.5 million with a correction factor of 101.40% of CDI interbank rate. The operation had a final expiry date of July 17, 2018. The total amount settled was R$ 163 million.

Closing of a Credit Agreement - Law 4,131 On July 18, 2018, the Company concluded a new Credit Agreement with the Bank of Tokyo Mitsubishi UFJ LTD under Law 4,131/62 in the amount of USD 75 million for a two year term expiring on July 20, 2020 with the remuneration of currency variation (VC) + 3.3415% p.a. + Income Tax for the 1st year and currency variation (VC) + 3.4415% p.a.+ Income Tax for the 2nd year. In addition, a swap agreement was signed with the Banco de Tokyo-Mitsubishi UFJ Brasil for R$ 278.6 million expiring on July 20, 2020 with a correction factor of 102.3% of CDI for the entire operation.

OTHER RELEVANT INFORMATION Concession Renewal - Contract 059/2001 (RBNI/RBSE) On September 12, 2012, Provisional Measure 579/2012 (“MP 579”) was published regulating the extension of the concession agreements for generation, transmission and distribution of electric energy. According to the provisional measure, expired concessions or concessions due to expire within 60 months from the publication date, had the option of anticipating its maturity date to December of 2012 with a subsequent extension of the agreement for up to 30 years. On November 01, 2012, the Ministry of Mines and Energy (MME) published Interministerial Ordinance 580 in which the compensation amounts were established for installations energized from June 01, 2000 and known as the Basic Network’s New Installations (“RBNI”). The amount established for ISA CTEEP was R$ 2.9 billion. On the same date, MME published Interministerial Ordinance 579, establishing the RAP amount for ISA CTEEP at R$ 515.6 million beginning on January 01, 201,3 and representing a reduction of approximately 75% of the RAP. On November 29, 2012, Provisional Measure 591 was published, authorizing the Concession Authority to pay the amount for undepreciated assets existing prior to May 31, 2000, known as the Basic Network’s Electrical System (“RBSE”).

23

Economic Component Financial Component ex-Ke Ke

837711 711 711 711 711

332

750

729750 750 750 750 750

750

253

246253 253 253 253 253

253

2021/20222017/2018

1,714

2020/20212018/2019

1,7141,714

2019/2020

1,335

2024/20252022/2023 2023/2024

1,8121,714 1,714

1,003

In December 2012, an Extraordinary General Meeting was held to decide on the anticipation of the expiration date of Concession Agreement 059/2001 as proposed in PM 579. The Company’s shareholders gave their unanimous approval to the extension of the agreement pursuant to the terms of Law 12,783/2013, the concession being extended to December 2042 and guaranteeing the Company’s right to receive amounts relative to RBNI and RBSE assets. The amounts with respect to RBNI assets and equivalent to R$ 2.9 billion were received between 2013 and 2015. As for the RBSE assets, an independent appraisal report was requested for evaluating the investments at the New Replacement Value (“VNR”), adjusted for depreciation up to December 31, 2012. In December 2015, ANEEL ratified the value of the RBSE assets for ISA CTEEP at R$ 3.9 billion. In April 2016, MME Ordinance 120 was published determining the amounts approved by ANEEL for RBSE installations and becoming part of the Regulatory Remuneration Base of the electric energy transmission concessionaires as of the tariff fixing process for 2017 for an estimated 8-year period. With the publication of ANEEL Ruling 1,484/17 of May 2017, the total RBSE amount due to ISA CTEEP was set at R$ 4.1 billion. The initial impact of the RBSE values was the book recognition according to IFRS principles in September of 2016 under the conditions established by MME’s Ordinance 120. Pursuant to the regulatory results booking method, the impact on the Company’s balance sheet may be noticed from the first receivables payments in July 2017. ANEEL Ruling 1,275/18 considers the administrative resources imposed by ISA CTEEP in 2017, in which it was requested that an adjustement be made in the totally depreciated asset account. Due to this reason, the Economic and Financial Components were raised until Cycle 2022/2023. The change mentioned was contemplated in the last tariff review, in which the RAP for Cycle 2018/2019 was also updated by an inflation of 2.86%. Besides that, a linearization of the Economic Component was applied, according to Submodel 9.1 of Proret, in a way that each one of the payments will be constant until Cycle 2022/2023. The result of the calculation with the mentioned adjustements, as disclosed by ANEEL, may be viewed below in values net of PIS/COFINS:

For the period of 2023/2024 an amount of R$ 332 million would be pending, correspondent to the Economic Component. However, the same linearization may be applied. Additionally, under an injunction, which determined in a temporary basis that ANEEL recalculate the RAP excluding the cost of capital (Ke) from the “remuneration” parcel, the Company has been receiving approximately 85% of the total amount of the RBSE since July 2017. However, the receivement of the Ke will depend on a judicial decision, and consequently there is no definition regarding the payment form of the installments, that have not been received.

Assumptions according to ANEEL Normative Resolution 762/2017: IPCA (Dec/12-June/17): 34.45% WACC: 6.64% Cost of Capital (Ke): 10.74% (1st half/13) and 10.44% (Jul/13 to Jun/17) Estimated amounts. WACC will be decided on the occasion of the tariff revision and the asset base is subject to write-offs.

24

As for the legislative aspect, initially in the published text that aims for the Eletrobras privatization, the RBSE payment was proposed, with two changes: to replace the restatement of the cost of capital (Ke) with WACC in the financial component parcel; and to increase the stipulated deadline for payment from 8 years to the remaining term of the concession agreement (~25 years) for this same component. In May 2018, a new report was published maintaining the deadline at 8 years for the payment of the financial component parcel according to MME Ordinance 120/2016, as well as substituting Ke to WACC, and extending its application to all transmission companies. Main Legal Cases Supplementary Retirement Plan – Law 4,819/58 Governed by State Law 4,819/58, the supplementary retirement plan applies to employees of autarchies and corporations, in which the state of São Paulo is the holder of the majority of shares and has executive control, and hired on or prior to May 13, 1974. The resources needed to meet the costs under this plan are the responsibility of the Government of the State of São Paulo, having been implemented in accordance with an agreement dated December 10, 1999 between the Finance Secretariat for the State of São Paulo (SEFAZ) and the Company. The payment of supplementary retirement benefits was through monthly payments funded by SEFAZ. The transfer of the amount to be paid went to ISA CTEEP, the Company then in turn transferring the same amount to Fundação CESP which then had the responsibility of crediting the individual retirees.

As of January 2004, retiree benefits began to be processed directly by SEFAZ and with this, reductions were made to original payments, as for instance, in relation to a ceiling (equivalent to the salary of the state governor). As a result, SEFAZ began excluding the excess value from benefits paid to retirees.

Class Action Following the court dismissal of a claim, in June 2005, the Funcesp Retirees Association (“AAFC”) obtained an injunction from the Labor Courts, determining that the previous payment in full be maintained. Thereafter, the processing of benefits payments reverted to the original model whereby the responsibility for payment was that of Fundação CESP, SEFAZ however transferring the adjusted (reduced) amount to the Company and ISA CTEEP then settling the difference so that when transferred to Fundação CESP, payment was made to the retirees in full as required under the injunction.

In 2017, the injunction was overturned, ISA CTEEP then ceasing to pay the difference between August and December, which resulted in a cash equivalent impact of about R$ 50 million. In December 2017, however, Minister Alexandre Moraes of the Federal Supreme Court (“STF”) awarded a further preliminary injunction, obliging the Company to make the additional payment to ensure full value to retirees. The Company appealed the decision and awaits a ruling from the STF. SEFAZ and FUNCESP have also appealed alleging the need to observe the ceiling on payments and apply a discount to benefits to avoid a loss to the state of São Paulo government coffers. Collection Lawsuit Since 2005, SEFAZ has been transferring to the Company amounts lower than required to make full payment to the retirees (~70%) following an injunction handed down by the 49th Labor Court. Consequently, ISA CTEEP has been topping up the amount to ensure full payment of retiree benefits (~30%). The difference paid by ISA CTEEP is being claimed in a collection lawsuit filed against SEFAZ.

This collection lawsuit was ruled in the Company’s favor by the 2nd instance court. In August 2017, SEFAZ lodged an appeal to the Federal Court of Appeals (STJ) and awaits examination of admissibility. As of June 30, 2018, the amount registered in the Company’s balance sheet was approximately R$ 2 billion, net of the provisions for losses on the realization of credits realized in 2013.

25

Collection Lawsuit: Eletrobras against Eletropaulo and EPTE In 1986, Centrais Elétricas Brasileiras S.A. (”Eletrobras”) filed an ordinary collection lawsuit against Eletropaulo relating to the balance of a financing agreement. In 1997, Eletropaulo executed a partial spinoff which resulted in the constitution of EPTE and other companies. The liabilities of any nature for acts practiced up to the date of the spinoff are the exclusive responsibility of Eletropaulo, except in the case of the contingent liabilities, provisions for which had been allocated to the merging companies. The provision with respect to the collection lawsuit involving Eletrobras was not allocated to EPTE and therefore it was the view of the management of ISA CTEEP and its legal advisors that the contingency pertains exclusively to Eletropaulo. However, at the time of the spinoff, a court deposit was made in the historical amount of R$ 4.00 to EPTE by Eletropaulo, related to the amount which the former understood as being due to Eletrobras as the balance of the above-mentioned financing. In October 2001, Eletrobras filed a judgement regarding the financing agreement, collecting R$ 429 million from Eletropaulo and R$ 49 million from EPTE, understanding that EPTE would settle payment of this part with restated funds cited in the court deposit. ISA CTEEP incorporated EPTE in November 2001, assuming all its obligations and rights. In October 2017, Eletrobras and Eletropaulo signed an Understanding Agreement, suspending the lawsuit pending eventual arbitration. On March 9, 2018, Eletropaulo approved an agreement for R$ 1.5 billion to discharge the debit under this lawsuit. In the ruling approving this agreement in April 2018, ISA CTEEP was excluded from the lawsuit.

26

ATTACHMENTS

Attachment I – Regulatory Balance Sheet

Assets

(BRL thousand) 06/30/18 12/31/17

Cash and Cash Equivalents 7,059 6,585

Financial Investments 843,828 610,066

Accounts Receivable 315,405 210,469

Inventory 16,396 18,831

Recoverable taxes and conbtributions 216,638 14,162

Income taxes and social contribution 0 0

Prepaid Expenses 22,245 4,607

Credit with controlled 825 903

Others 83,296 60,870

1,505,692 926,493

Long-Term Assets

Accounts Receivable 20,664 20,329

Accounts Receivable from the State Finance Secretariat 1,409,142 1,312,791

Income taxes and social contribution 0 0

Pledges and Escrow 65,070 66,414

Others 54,956 36,674

1,549,832 1,436,208

Investments 1,242,101 1,173,378

Imobilized Assets 7,217,789 7,441,984

Intangible Assets 137,790 118,686

Total Assets 11,653,204 11,096,749

Consolidated

CURRENT

NON-CURRENT

27

Liabilities and Shareholders' Equity

(BRL thousand) 06/30/18 12/31/17

Loans and Financing 287,106 268,589

Debentures 183,474 182,852

Suppliers 58,806 69,923

Taxes and Social Charges 389,278 90,502

Taxes installments - Law 11,941 0 57,997

Regulatory Charges 39,059 16,550Interest on Shareholders' Equity / Dividends to pay 5,159 3,112Provisions 40,457 36,344

Amounts Payable - Fundação CESP 4,655 2,056

Global Reversion Reserve 2,480 0

Others 13,905 61,179

1,024,379 789,104

Long-Term Liabilities

Loans and Financing 657,248 690,541

Debentures 1,420,052 801,007

Provisions for contingencies 113,686 121,553

Income taxes and social contribution 769,433 831,111

Global Reversion Reserve 20,333 24,053

Obligations related to concession service 320,021 321,076

Regulatory Charges 42,962 54,250

Others 33,508 6,503

3,377,243 2,850,094

SHAREHOLDER'S EQUITY

Share Capital 3,590,020 3,590,020

Capital Reserves 666 666

Income Reserves 557,337 1,994,141

Reavaliation Reserves 2,198,516 2,301,266

Accumulated profits and losses 692,337 (643,481)

7,251,582 7,457,551

Total Liabilities and Shareholders' Equity 11,653,204 11,096,749

NON-CURRENT

Consolidated

CURRENT

Participation of Non Controlling Shareholder 212,706 214,939

28

Attachment II – Regulatory Income Statement

2Q18 2Q17 Chg (%) 1H18 1H17 Chg (%)

Gross Revenue 844,171 307,223 174.8% 1,678,811 618,714 171.3%

Availability of Electric Network 837,376 301,001 178.2% 1,665,284 605,278 175.1%

Others 6,795 6,222 9.2% 13,527 13,436 0.7%

Deductions from the Operational Revenue (104,763) (43,959) 138.3% (207,079) (87,828) 135.8%

Net Revenue 739,408 263,264 180.9% 1,471,732 530,886 177.2%

Costs and Operational Expenses (266,600) (123,943) 115.1% (526,269) (260,584) 102.0%

Personnel (79,437) (71,979) 10.4% (157,161) (147,567) 6.5%

Material (3,362) (2,495) 34.7% (6,378) (4,903) 30.1%

Services (28,500) (29,403) (3.1%) (55,874) (53,090) 5.2%

Depreciation (144,676) (18,419) 685.5% (290,495) (34,753) 735.9%

Others (10,625) (1,647) 545.1% (16,361) (20,270) (19.3%)

Result of Service 472,808 139,321 239.4% 945,463 270,302 249.8%

Financial Results (25,692) (26,436) (2.8%) (60,985) (55,705) 9.5%

Income from Financial Investments 18,347 11,249 63.1% 29,233 21,516 35.9%

Result of Liquid Monetary Variation (6,447) (8,585) (24.9%) (17,650) (16,401) 7.6%

Interest costs (580) (2,333) (75.1%) (1,160) (8,283) (86.0%)

Interest/Charges on loans (35,052) (27,065) 29.5% (66,756) (52,219) 27.8%

Others (1,960) 298 (757.7%) (4,652) (318) 1362.9%

Operational Result 447,116 112,885 296.1% 884,478 214,597 312.2%

Equity Equivalence 22,431 (5,070) (542.4%) 41,778 12,413 236.6%

Other Operational Revenue/Expenses (564) (2,498) (77.4%) 4,183 (2,499) (267.4%)

Results before Taxes 468,983 105,317 345.3% 930,439 224,511 314.4%

Income Tax and Social Contribution on Income (126,633) (29,865) 324.0% (282,825) (56,386) 401.6%

Current (167,891) (26,487) 533.9% (344,504) (47,232) 629.4%

Deferred 41,258 (3,378) (1321.4%) 61,679 (9,154) (773.8%)

Consolidated Income/Losses of the Period Before the

Participation of the Non Controlling Shareholder342,350 75,452 353.7% 647,614 168,125 285.2%

Participation of Non Controlling Shareholder (3,285) (5,867) 100.0% (6,745) (11,715) 100.0%

Net Income 339,065 69,585 387.3% 640,869 156,410 309.7%

Result

(BRL thousand)

Consolidated

29

Attachment III – Indirect Cash Flow – Regulatory

06/30/2018 06/30/2017

Cash Generated by Operations 754,917 98,741

Adjustements to conceal the net income with generated

cash flow by operational activities897,056 248,065

Net Income 647,614 168,125

Depreciation and amortization 290,495 34,753

Deferred taxes (61,679) 9,154

Provisions for contingencies (8,297) (22,656)

Residual value of permanent assets 2,634 4,417

Amortization goodwill 19 19

Evrecy Amortization 1,194 1,194

Result of equity equivalence (41,778) (12,413)

Reversal of the loss provision in a Controlled Company (1,062) (1,110)

Interest and exchange variations due on assets and liabilities 67,916 66,581

Assets Variation (361,497) (191,175)

Restricted cash (6,837) (313)

Concessionaires and Permissionaires (27,871) (33,560)

Operational Warehouse 2,435 (926)

Amounts to Receive - Treasury Office (96,351) (107,139)

Clearing Taxes (202,476) (40,007)

Deposits and linked deposits 2,344 1,621

Prepaid expenses (17,638) (14,819)

Services in progress (3,281) 1,421

Credit with subsidiaries 78 2,060

Others (11,900) 487

Liabilities Variation 219,358 41,852

Suppliers (11,116) (11,014)

Social and Labor Obligations 298,796 38,486

Taxes installments - Law 11,941 (58,146) (8,950)

Regulatory charges payable 9,900 16,242

Provisions (1,166) 5,797

Amounts payable - Funcesp 2,599 239

Global Reversion Reserves (1,240) 0

Obligations related to service concession 0 19,348

Others (20,269) (18,296)

Investments Activites Cash Flow (418,889) (45,911)

Purchases of Fixed Assets (167,894) (124,910)

Financial Aplications (235,995) 81,213

Investments (20,100) (2,214)

Received dividends 5,100 0

Financing Activities Cash Flow (335,554) (52,349)

News loans 621,696 300,000

Loan payments (main) (46,477) (29,201)

Loan payments (interest) (61,466) (46,068)

Transactions with non-controlling shareholders (6,745) (5,337)

Dividends paid (842,562) (271,743)

Variation in Cash and Equivalents 474 481

Opening Balance of Cash and Cash Equivalents 6,585 4,524

Closing Balance of Cash and Cash Equivalents 7,059 5,005

Cash Flow of operating activitiesConsolidated

30

Attachment IV – Regulatory Income Statement for the jointly Held Subsidiaries IE Madeira and IE Garanhuns

Gross Operational Revenue 147.2 89.7 64.1% 292.6 226.1 29.4%

Operational Revenue Deductions (18.9) (11.8) 60.6% (37.7) (29.6) 27.1%

Net Operational Revenue 128.3 78.0 64.6% 254.9 196.4 29.8%

Costs and Expenses (9.9) (10.1) -2.3% (19.3) (20.9) -8.0%

Depreciation (34.1) (34.3) -0.5% (68.2) (68.5) -0.5%

Gross Profit 84.3 33.6 151.1% 167.5 107.0 56.5%

Financial Result (44.0) (45.0) -2.3% (89.4) (89.0) 0.5%

Income before IR & CSLL 40.4 (11.4) -454.1% 78.1 18.0 333.1%

IR & CSLL* (5.3) (9.0) -40.4% (10.7) (14.3) -25.4%

Net Income 35.1 (20.4) -272.2% 67.4 3.7 1704.8%

CTEEP Participation (51%) 17.9 (10.4) -272.2% 34.4 1.9 1704.8%

(*) Holds enterprises regarding infrastructure of transmission lines and substations of electric energy, in operation in the SUDAM areas, whose benefits were conceeded in the months of December of 2014 and 2015, respectively. The deadline to take advantage of the fiscal benefit is 10 years with a reduction of 75% of taxes over income and additionals.

Results

(BRL million)2Q172Q18 Chg (%) 1H18 1H17 Chg (%)

IE MADEIRA

Gross Operational Revenue 24.5 27.7 -11.7% 48.0 55.0 -12.7%

Operational Revenue Deductions (3.5) (3.6) -4.6% (6.2) (7.2) -14.2%

Net Operational Revenue 21.0 24.1 -12.8% 41.8 47.8 -12.5%

Costs and Expenses (3.8) (2.5) 50.4% (7.1) (6.1) 15.5%

Depreciation (6.2) (6.2) 0.1% (12.4) (12.3) 1.1%

Gross Profit 11.0 15.4 -28.3% 22.4 29.4 -23.9%

Financial Result (4.1) (4.2) -3.0% (8.2) (9.6) -14.8%

Income before IR & CSLL 7.0 10.1 -31.1% 14.2 19.8 -28.4%

IR & CSLL* 1.4 0.4 226.5% (0.5) 1.2 -141.4%

Net Income 8.4 10.6 -20.9% 13.6 21.0 -35.0%

CTEEP Participation (51%) 4.3 5.4 -20.9% 7.0 10.7 -35.0%

(*) Holds enterprises regarding infrastructure of transmission lines and substations of electric energy, in operation in the SUDAM areas, whose benefits were conceeded in the months of December of 2014 and 2015, respectively. The deadline to take advantage of the fiscal benefit is 10 years with a reduction of 75% of taxes over income and additionals.

Chg (%) 1H18 1H17 Chg (%)

IE GARANHUNS

2Q17Results

(BRL million)2Q18

31

Attachment V – Breakdown of Consolidated Debt (BRL thousand)

Funding Charges Maturity 06/30/2018 12/31/2017

TJLP + 1.80% per year 03/15/29 205.4 214.2

3.50% per year 01/15/24 56.9 61.9

TJLP 03/15/32 156.5 155.6

4.00% per year 08/15/18 0.0 0.1

6.00% per year 11/15/19 3.3 4.4

TJLP 03/15/29 1.7 0.0

3rd Issuance - Single serie 116% CDI 12/16/18 169.8 169.4

4th Issuance - Single serie IPCA + 6.04% per year 07/15/21 163.0 155.2

5th Issuance - Single serie IPCA + 5.04% per year 02/15/24 309.3 309.1

6th Issuance - Single serie 105.5% CDI 12/13/20 350.2 350.1

7th Issuance - Single serie IPCA + 4.70% 04/15/25 611.2 0.0

Law 4,131 - BTMU Libor 3M + 0.28% per year 07/17/18 161.7 166.0

Eletrobras 8% per year 11/15/21 0.1 0.1

Leasing 0.0 0.1

2,189.2 1,586.4

IEMG TJLP + 2.39% per year 04/15/23 25.4 27.9

TJLP + 2.62% per year 05/15/26 26.0 30.6

TJLP + 5.5% per year 01/15/21 28.8 31.0

TJLP + 3.50% per year 04/15/23 8.8 5.5

TJLP + 2.06% per year 02/15/28 5.3 9.7

TJLP + 1.95% per year 05/15/26 30.3 32.1

TJLP + 1.55% per year 05/15/26 26.2 27.8

8.50% per year 05/19/30 177.0 182.6

CDI + 0,56% a.m. 01/16/18 0.0 9.3

327.7 356.5

2,516.9 1,942.9

SERRA DO JAPI

BNDES

CTEEP - Debentures

CTEEP - Others

CTEEP Total Gross Debt

PINHEIROS

IENNE

Subsidiaries Total Gross Debt

Consolidated Total Gross Debt (R$ thousand)

32

Net Debt 06/30/2018 2,900 Net Debt 06/30/2018 1,697 Net Debt 06/30/2018 1,697 Net Debt 06/30/2018 1,697

Adjusted EBITDA last 12 months 2,458 Adjusted EBITDA last 12 months 2,226 Adjusted EBITDA last 12 months 1,604 Adjusted EBITDA last 12 months 1,236

Net Debt/Adjusted EBITDA 06/30/2018

1.18 Net Debt/Adjusted EBITDA 06/30/2018

0.76 Net Debt/Adjusted EBITDA 06/30/2018

1.06 Net Debt/Adjusted EBITDA 06/30/2018

1.37

Shareholders' Equity 06/30/2018 10,726 Financial Result 06/30/2018 71 Financial Result 06/30/2018 108 Expenses with net interest 06/30/2018

71

Net Debt/Net Debt + Shareholders' Equity 06/30/2018

0.21 Adjusted EBITDA/Financial Result 06/30/2018

31.13 Adjusted EBITDA/Financial Result 06/30/2018

14.82 Adjusted EBITDA/Expenses with net interest 06/30/2018

17.29

International Credit - Law 4131(quarterly verification)

BNDES(annual verification)

Infrastructure Debentures(4th and 5th issuance)

Simple Debentures(quarterly verification)

The main covenants to which ISA CTEEP must be a party are as follows:

Financing contracts with BNDES (valid for 2018) must abide by maximum financial indicators of: Net Debt/BNDES Adjusted EBITDA ≤ 3.0 and Net Debt/(Net Debt + Equity Capital) ≤ 0.6, verified at the end of each fiscal year. For the purposes of calculating and substantiating the foregoing indices, the Company must consolidate all controlled and jointly controlled subsidiaries (pro-rated according to its stake) should its stake be 10% or higher.

The 3rd Debentures issue requires full compliance with the covenants provided in BNDES financing agreements.

The 4th Debentures issue must comply with the periodicity of quarterly verification, the financial indicators in the deed being: Net Debt/Adjusted EBITDA < 3.5 and Adjusted EBITDA/Financial Income > 1.5 until baseline date of June 30, 2017; from baseline date of September 30, 2017, the indicator is > 2.00.

The 5th Debentures issue must comply with the periodicity of quarterly verification, the financial indicators in the deed being: Net Debt/Adjusted EBITDA < 3.5 and Adjusted EBITDA/Financial Income > 1.5 until the baseline date of June 30, 2017;from the baseline date of September 30, 2017, the indicator is > 2.00.

The 6th Debentures issue must comply with the periodicity of quarterly verification, the financial indicators in the deed set as follows: Net Debt/Adjusted EBITDA < 3.5 and Adjusted EBITDA/Financial Income > 2.0.

The Credit Agreement (Law 4131) requires the following maximum financial indicators for the full loan term based on quarterly periodicity for verification: Net Debt/Adjusted EBITDA < 3.5 Adjusted EBITDA/Net Interest Expense ≥ 2.0.

33

Attachment VI – Breakdown of the Debt of Jointly Held Subsidiaries - (BRL thousand)

Company Bank Charges Final Maturity

Amount

guaranteed

by ISA CTEEP

Total Amount

Owed

06/30/18

ITAÚ BBA IPCA + 5.5% per year 03/18/2025 244.3 479.0

BNDES TJLP + 2.42% per year 02/15/2030 607.4 1,190.9

BNDES TJLP 02/15/2030 1.2 2.4

BNDES 2.5% per year 10/15/2022 61.0 119.5

BASA 8.5% per year* 10/10/2032 154.1 302.2

Gross Debt 1,068.0 2,094.1

Availability 80.7 158.1

Net Debt 987.3 1,936.0

BNDES TJLP + 2.05% per year 12/15/2028 98.2 192.5

BNDES 3.50% per year 08/15/2023 37.6 73.8

BNDES TJLP 12/15/2028 0.7 1.4

Gross Debt 136.5 267.7

Availability 18.6 36.5

Net Debt 117.9 231.2

BNDES 5.50% per year 01/15/2021 2.9 5.8

BNDES TJLP + 2.58% per year 05/15/2025 4.0 8.0

BNDES 3% per year 08/15/2023 1.5 3.0

BNDES TJLP + 2.58% per year 08/15/2028 2.6 5.2

Gross Debt 10.9 21.9

Disponibilidades 2.4 4.8

Net Debt 8.5 17.0

1,215.4 2,383.6

TOTAL Net Debt 1,113.8 2,184.2

IE MADEIRA

51% ISA CTEEP

TOTAL Gross Debt

IE GARANHUNS

51% ISA CTEEP

IE SUL

50% ISA CTEEP

34

Attachment VII – Balance Sheet – IFRS

Assets

(BRL thousand) 06/30/2018 12/312017

Cash and cash equivalents 7,059 6,585

Financial Investments 843,828 610,066

Accounts Receivable 1,916,407 1,924,928

Inventories 35,204 37,639

Current taxes 216,638 14,162

Advance expenses 22,245 4,607

Credits from Subsidiaries 825 903

Other 78,695 44,819

3,120,901 2,643,709

Long-term Receivables

Restricted Cash 42,460 35,674

Accounts Receivable 10,865,644 11,213,952

Amounts Receivable - Revenue Service 1,409,142 1,312,791

Pledges and Liens 65,070 66,414

Inventories 18,250 37,034

Other 12,493 1,513

12,413,059 12,667,378

Investments 1,943,473 1,880,845

Property, Plant and Equipment 22,868 22,879

Intangible Assets 34,404 37,362

2,000,745 14,608,464

Total Assets 17,534,705 17,252,173

Consolidated

CURRENT

NON-CURRENT

35

Liabilities and Shareholders' Equity

(BRL thousand) 06/30/2018 12/312017

Loans and financing 287,106 268,589

Debentures 183,474 182,852

Suppliers 58,806 69,923

Taxes and Social Charges Payable 389,278 90,502

Tax Installments 0 57,997

Regulatory Charges Payable 39,059 16,550

Interest on Shareholders' Equity/Dividends payable 5,159 3,112

Provisions 40,457 36,344

Amounts Payable - Fundação CESP 4,655 2,056

Other 16,385 61,179

1,024,379 789,104

Long-term Liabilities

Loans and financing 657,248 690,541

Debentures 1,420,052 801,007

Deferred PIS and Cofins 1,104,911 1,147,381

Deferred Income Tax and Social Contribution 2,283,080 2,418,125

Regulatory Charges Payable 42,962 54,250

Provisions 113,686 121,553

Other 53,841 30,556

Total long-term liabilities 5,675,780 5,263,413

Non-Controlling Shareholder's Stake 212,706 214,939

Shareholders' Equity 3,590,020 3,590,020

Capital Reserves 666 666

Profits Reserve 6,549,032 7,394,031

Accumulated Profits/Losses 482,122 0

10,834,546 11,199,656

Total Liabilities and Shareholders' Equity 17,534,705 17,252,173

NET EQUITY

Consolidated

CURRENT

NON-CURRENT

36

Attachment VIII – Income Statement – IFRS

2Q18 2Q17 Chg (%) 1H18 1H17 Chg (%)

Gross Operating Revenue 665,797 1,003,822 (33.7%) 1,293,050 1,604,419 (19.4%)

Infrastructure 113,491 41,891 170.9% 193,627 118,989 62.7%

O&M 242,854 232,638 4.4% 477,873 469,628 1.8%

Concession assets 302,657 723,071 (58.1%) 608,023 1,002,366 (39.3%)

Other 6,795 6,222 9.2% 13,527 13,436 0.7%

Deductions from Operating Revenue (85,196) (108,025) (21.1%) (165,842) (178,031) (6.8%)

Net Operating Revenue 580,601 895,797 (35.2%) 1,127,208 1,426,388 (21.0%)

Operating Costs and Expenses (229,809) (145,327) 58.1% (420,613) (337,480) 24.6%

Personnel (84,181) (75,317) 11.8% (165,214) (156,139) 5.8%

Materials (79,603) (29,305) 171.6% (140,476) (90,161) 55.8%

Services (53,464) (36,651) 45.9% (91,454) (65,783) 39.0%

Depreciation (2,232) (2,403) (7.1%) (4,467) (4,811) (7.1%)

Other (10,329) (1,650) 525.9% (19,002) (20,586) (7.7%)

Service Income 350,792 750,470 (53.3%) 706,595 1,088,908 (35.1%)

Financial Income (25,692) (26,436) (2.8%) (60,985) (55,705) 9.5%

Income from Financial Investments 18,347 11,249 63.1% 29,233 21,516 35.9%

Result of Liquid Monetary Variation (6,447) (8,585) (24.9%) (17,650) (16,401) 7.6%

Interest costs (580) (2,333) (1) (1,160) (8,283) (1)

Interest/Charges on loans (35,052) (27,065) 29.5% (66,756) (52,219) 27.8%

Others (1,960) 298 (757.7%) (4,652) (318) 1362.9%

Operating Income 325,100 724,034 (55.1%) 645,610 1,033,203 (37.5%)

Equity Income 26,757 20,829 28.5% 47,629 77,136 (38.3%)

Other Operating Revenues/Expenses (32) (1,595) (98.0%) 4,690 (1,481) (416.7%)

Earnings Before Taxes 351,825 743,268 (52.7%) 697,929 1,108,858 (37.1%)

Income tax and Social Contribution on Earnings (103,759) (238,568) (56.5%) (209,455) (337,000) (37.8%)

Current (167,890) (26,485) 533.9% (344,504) (47,232) 629.4%

Deferred 64,131 (212,083) (130.2%) 135,049 (289,768) (146.6%)

Consolidated Profit/Loss for the Period before Non-Controlling

Shareholder's Stake248,066 504,700 (50.8%) 488,474 771,858 (36.7%)

Non-Controlling Shareholder's Stake (3,285) (5,868) (44.0%) (6,745) (11,716) (42.4%)

Consolidated Profit/Loss for the Period 244,781 498,832 (50.9%) 481,729 760,142 (36.6%)

ConsolidatedIncome Statement

(BRL thousand)

37

Attachment IX – Cash Flow - IFRS (BRL thousand)

06/30/2018 06/30/2017

Net Cash from Operating Activities 608,595 (96,075)

Cash from Operations 248,479 1,063,968

Net Earnings 481,729 760,142

Deferred PIS and COFINS (46,727) 90,585

Depreciation and Amortization 4,045 4,437

Deferred IR and CSLL (137,264) 290,091

Provision for Lawsuit Liabilities (8,555) (22,660)

Residual Cost of of Property, Plant and Equipment 111 24

Tax Benefit - Embedded Premium 19 19

Amortization concession asset from controlled company acquisition 1,244 1,245

Realized loss from jointly controlled company (1,062) (1,110)

Equity income (100,502) (117,829)

Interest and exchange variation on assets and liabilities 55,441 59,024

Asset Variations 360,116 -1,160,043

Restricted cash

Accounts Receivable 457,398 (1,028,766)

Inventories 21,207 2,459

Amounts to Receive - Treasury Office (96,351) (107,139)

Clearing Taxes (202,441) (40,017)

Deposits and linked deposits 2,344 1,622

Prepaid expenses

Others (16,017) 3,418

Suppliers (15,206) (10,286)

Taxes and Charges Payable 297,915 38,492

Tax Installments (58,146) (8,950)

Regulatory Charges Payable 11,407 16,135

Provisions (1,304) 5,666

Amounts Payable FUNCESP 2,599 239

Global Reversion Reserves

Other Passives

Net Cash from Operating Activities (320,849) 122,771

Financial Investments (237,817) 91,861

Property, Plant and Equipment (2,097) (289)

Intangible (286) (87)

Investments (121,849) (2,214)

Received dividends

Net Cash from Operating Activities (287,470) (26,122)

Loan extensions 621,696 300,000

Loan Payments (interest included) (66,604) (54,379)

Dividends Paid (842,562) (271,743)

Change in Cash and Cash Equivalents 276 574

Cash and cash equivalents at year start 3,031 1,609

Cash and cash equivalents at yearend 3,307 2,183

Cash Flow from OperationsConsolidated