SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of May, 2021

Commission File Number 1-34129

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS

(Exact name of registrant as specified in its charter)

BRAZILIAN ELECTRIC POWER COMPANY

(Translation of Registrant's name into English)

Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

INTRODUCTION

Rio de Janeiro, May 12, 2021

Eletrobras (Centrais Elétricas Brasileiras S.A.)
[B3: ELET3 and ELET6 – NYSE: EBR and EBR-B – LATIBEX: XELTO and XELTB]

Eletrobras, the largest company in the electric energy sector in Latin America, active in the generation, transmission and commercialization segment, parent of 6 operational subsidiaries, a holding company - Eletropar - a research center - Cepel and with a 50% stake in the Itaipu Binacional's Capital Stock and direct and indirect participation in 83 Special Purpose Companies, on this date, announces its results for the period.

1st QUARTER OF 2021

Eletrobras presented, in the first quarter of 2021 (1Q21), a net profit of R$ 1,609 million, 31% higher than the profit of R$ 1,228 million of profit obtained in the first quarter of 2020 (1Q20). The 1Q21 profit was positively impacted by results in transmission, as a result of the Periodic Tariff Review with effect from July 2020, and negatively by the provisions for contingencies of R$ 932 million, highlighting R$ 436 million related to legal contingencies that discuss the monetary restatement of the compulsory loan, especially as a result of judicial ratifications of calculations that differ from the Company's understanding of the treatment of the incidence of 6% pa interest, which is based on Special Appeal 1,003,955 / RS, which has repetitive feature effect.

Net Operating Revenue went from R$ 7,604 million in 1Q20 to R$ 8,208 million in 1Q21, an increase of 8%, influenced by the effect on the transmission revenue of the aforementioned tariff review. Ebtida IFRS, in the amount of R$ 3,463 million in 1Q20, grows to an amount of R$ 3,858 million in 1Q21, impacted by the effects on the aforementioned revenues and provisions. Recurring Net Operating Revenue grew by 8.0%, from R$ 7,595 million in 1Q20 to R$ 8,200 million in 1Q21. Recurrent Ebtida increased 30%, from R$ 3,811 million in 1Q20 to R$ 4,938 million in 1Q21.

Considering the Circular Letter CVM/SNC/SEP 04/2020, issued on December 1, 2020, Eletrobras made retrospective adjustments in the measurement of its: (i) transmission assets - Existing Basic System Network (RBSE), up to then classified as financial assets, starting to treat them as contract assets under CPC 47 / IFRS 15 - Revenue from Contracts with Customers; and (ii) changes in the remuneration rate of its other transmission assets, considering the new criteria established in the guidance issued by CVM. Retrospective adjustments (1Q20) were made to maintain the comparative basis. More information in note 4.4 of the 1Q21 Financial Statements.

OTHER 1Q21 HIGHLIGHTS

TABLE 01: MAIN INDICATORS (R$ MILLION)

(1) Does not consider the energy allocated to quotas, from the plants renewed by Law 12,783 / 2013 (2) Does not consider Revenue from Generation Construction and Reversal of Revenue energy interconnection between Brazil and Uruguay; (3) Excludes item (2) and Adjustments Deductions from Candiota Revenue; (4) Excludes item (3) and fuels not consumed due to the Candiota stop, expenses with Fuel and Generator for Amapá crisis, Generation Construction Costs, costs of the Extraordinary Retirement Plan (PAE) and the consensual Dismissal Plan ( PDC), Costs and expenses with layoffs at Eletronorte, Reversal of foundations contributions (CVM 600 adjustment), ELOSAUDE retroactive administration fee CGT Eletrosul, costs and expenses with Furnas tericeirados, Additional services in Candiota, Write-off of assets (Eletronorte x Energisa Acre) , Judicial agreements Inepar, Camargo Correa, CIEN; Recovery of expenses related to the Eletrosul tax lawsuit, Recovery of expenses at Eletrosul, Amazonas GT gains on the sale of assets and rights; provisions for contingency, onerous contracts, impairment, provision for losses on investments, provision for losses on investments classified as held for sale, provisions for adjustment to market value of preferred shares to be delivered related to reserve requirements, ANEEL CCC provision; Rap Adjustment Portion; Inflexibility Provision for Usina Candiota III, and PCLD Estimated prospective credit loss (CPC 48) due by privatized distributors, Provision for Expiry of the Concession; (5) Excludes item (4) plus monetary restatement for the compulsory loan contingency; retroactive monetary restatement of compulsory loan liabilities not yet converted and activation of non-recurring tax credit, Income from loans by the Distributors, Bonus Premium + FIDC Commission, financial expense with fine on the payment of withheld income tax, financial expense with Fine and Tax Notices Infringement.

1       ANALYSIS OF THE
CONSOLIDATED RESULT _{(R$ MILLION)}

TABLE 02: CONSOLIDATED RESULTS

TABLE 03: RECURRING CONSOLIDATED RESULT

* Non-recurring adjustments mentioned in the Highlights.

1.1 MAIN VARIATIONS OF FINANCIAL STATEMENTS

HIGHLIGHTS IN ANALYSIS OF VARIATION 1Q20 X 1Q21

OPERATING INCOME

TABLE 04: GENERATION REVENUE

Variation Analysis 1Q20 X 1Q21

Energy supply to distribution companies

At subsidiary Eletronorte (-R$ 245 million): (i) a 27% decrease (R$ 196 million) in sales revenue at ACL (free market), from R$ 729 million to R$ 533 million, as a result of the 4% reduction in the amount of energy sold, from 1,730MWmed in 1Q20 to 1,659MWmed in 1Q21, in addition to the 23% lower price in the comparison between quarters, R$ 193 / MWh, against R$ 149 / MWh; (ii) a 96% decrease (R$ 49.2 million) in sales revenue in the ACR (regulated market) from R$ 51 million to R$ 1.8 million, due to the end of the 18th products and the beginning of the billing of the 23rd auction , with lower prices (from R$ 175 / MWh to R$ 167.31 / MWh) and a 96% reduction in energy sold, from 133 MWmed in 2020 against 5 MWmed in 2021.

At subsidiary Furnas (-R$ 159 million): (i) Lower amount of energy traded in the ACL (2,581 GWh in 1Q20 to 2,319 GWh in 1Q21, representing a decrease of R$ 45 million. (Ii) Lower dispatch from the Santa Cruz thermal plant Cruz in 2021, representing a decrease of R$ 65 million. (Iii) positive non-recurring effect, in January 2020, as R$ 49 million was recorded from the MCSD of the product ended in Dec / 19 (1 month accounting shift), affecting positively, the commercial revenue of Jan / 20, which was, therefore, R$ 49 million lower than the accounting, partially offset by (iv) Price adjustment of the ACR quantity contracts (3%).

In the subsidiary Eletronuclear (-R$ 75 million): (i) reduction of -R$ 75.5 million (-8.1%) in the Fixed Revenue of the Angra 1 and 2 Plants, according to ANEEL Homologatory Resolution No. 2,821 of 15 / 12/2020, especially due to the impact of the negative adjustment portion related to Nuclear Fuel (R$ 76.0 million in the quarter).

At subsidiary CGT Eletrosul (-R$ 11 million): (i) reduction in ACR revenue by R$ 3.8 million due to an increase in the provision for reimbursement for insufficient generation of TPP Candiota by R$ 9 million, partially offsetting by adjusting average prices by 3% in the regulated market, increasing revenue by R$ 5.3 million; and (ii) a decrease in ACL revenue of R$ 7.2 million due to the -9% variation in the average sale price, which generated a R$ 14 million decrease in revenues, partially offset by an increase of 4 % in energy sold (322 average MW in 1Q20 and 336 average MW in 1Q21), generating an increase of R$ 6.9 million in revenues.

Partially offset by:

At the subsidiary Amazonas GT (+ R$ 109 million), in particular due to: (i) an increase of R$ 69 million in PIE revenue, due to an average increase of 13% due to the annual readjustment of Contract Prices linked to the IGPM of the Supply Portion, of which R$ 43 million refer to the supply portion and R$ 26 million to fuel. The accumulated IGPM variation of 23.4% affects the supply share, which in terms of energy has an accumulated variation of 0.3% [670 GWh (2021) - 668 GWh (2020)] in the total energy of the PIE; (ii) a R$ 30 million increase in revenue from Mauá 03 due to the higher level of dispatch requested by ONS, approximately 72.9 MW / average; (iii) an increase of R$ 6 million in UTE Aparecida due to the higher level of dispatch requested by ONS, approximately 23.1 MW / average; and (vi) an increase of R$ 2 million due to the update of the sale price of energy (IPCA 3.4%), based on the seasonality curves of the contracted energy for each year registered and validated by the buyer at CCEE.

In the subsidiary Chesf (+ R$ 40 million): Variation due to the increase of 71 average MW sold in the accumulated in March / 2021 in relation to the same period of the previous year, resulting in an increase in revenue of approximately R$ 35 million.

SUPPLY FOR END CONSUMERS

At subsidiary Eletronorte (+ R$ 42 million): (i) change in revenues with Albras in the amount of R $ 40.8 million due to the derivative component associated with the price of Aluminum and Dollar: (a) 16% increase in the average aluminum prices, US$ 1,761 in 2020, against US$ 2,040 in 2021; (b) a 23% increase in the average dollar conversion rate, R$ 4.46 / US$ in 2020, compared to R$ 5.47 / US$ in 2021). These parameters directly influence the calculation of the sale price of energy to Albras.

At subsidiary Furnas (+ R$ 13 million): readjustments in unit prices for supply contracts, linked to HPP Itumbiara (Law 13,182). Uniform readjustment for all contracts by 4.5%, representing an increase of R$ 13 million in the period.

In subsidiary Chesf (+ R$ 2 million): Increase in the period by 8 average MW in the consumption of industrial customers reached by Law 13,182 / 2015 in the accumulated until March / 2021, in comparison with the same period of the previous year, influenced by the resumption of activities of an industrial consumer in the state of Alagoas, which offset the reduction caused by technical problems at the plant of an industrial consumer in the state of Bahia, from March / 2020 and that lasted until March / 2021, without basis of comparison in the accumulated of Mar / 2020.

CCEE

At the holding company (+ R$ 101 million): the volume of imported energy of 89,710 MW in the first quarter of 2021 amounting to R$ 103.7 million settled in the short-term market was significantly higher than the 11,949 MW imported in the quarter of 2020, whose impact was R$ 1.9 million in the result.

In the subsidiary Furnas (+ R$ 92 million) It is justified, despite the variation of GSF in the period, which had a decrease of approximately 16% (average of 105% in 2020 and 89% in 2021) and the decrease in the average PLD of approx. 8% (1Q20: R$ 187.89 / 1Q21: R$ 172.57), due to the lower sale in the period, which added to the seasonalization of the ACR contracts, provided a greater amount of energy to be settled compared to the previous period and consequently greater result in the MCP.

At subsidiary Eletronorte (+ R$ 13 million): (i) the 45 MWmed increase in available energy, reflecting: (a) a 296 MWmed increase in the Seasonal Physical Guarantee in the period, 3,207 MWmed in 2020, against 3,503 MWmed in 2021; (b) reduction of 206 MWmed of energy sold through bilateral contracts, from 2,747MWmed in 2020 to 2,541 MWmed in 2021. On the other hand, there was (ii) a reduction in the average price from R$ 200 / MWh in 1Q20 to R$ 161 / MWh in 1Q21.

Partially offset by, in the subsidiary Chesf (-R$ 74 million): The variation is mainly due to the increase in energy sold by 79 average MW, reducing the energy surplus in relation to the same period in 2020. Additionally, there was a reduction from the average PLD of R$ 187 / MWh (accumulation Mar / 2020) to R$ 172 / MWh (accum. Mar / 2021).

In the subsidiary Amazonas GT (+ R$ 14 million): (i) in 1Q20 UHE Balbina, due to the seasonality curve, showed an increase in sales of approximately R$ 23 million, while in 1Q21 this value was only R$ 8 million ; (ii) the rest of the R$ 1 million variation is distributed among the thermal plants.

Operation and Maintenance Revenue - Plants Renewed by Law 12.783/2013

In subsidiary Chesf (+ R$ 64 million): (i) annual adjustment of RAG of about 10%, in accordance with Homologatory Resolution No. 2746/2020 (cycle 2020-2021). Additionally, there was an increase in the indemnity revenue for the payment of the CFURH by approximately R$ 15 million.

At subsidiary Furnas (+ R$ 41 million), Impacted by the annual readjustment of RAG (approximately 11%) which reflects an increase of R$ 36 million, in accordance with Aneel Homologatory Resolution No. 2,746 / 2020, as well as the entry of the Jaguari in Jan / 21, temporarily operated by Furnas, representing a revenue of more than R$ 3 million, without comparison in 2020. The variation of CFURH and, consequently, of PIS / COFINS, which represented an increase in revenue in the order of R$ 1 million for the period.

Construction Revenue

Lower level of investment made in 1Q21, but with no effect on results as it has an equivalent value in construction expenses.

Transfer Itaipu

In the Holding (-R$ 13 million): (i) Variation in the tariff on which the monetary restatement calculated based on the American price indices Commercial Price and Industrial goods, levied on Itaipu's financial assets that offset the exchange rate variation on said asset, recognized by interim ministerial decree 04/2018 of the MME and the Ministry of Finance that determines Itaipu's revenue.

TABLE 05: TRANSMISSION REVENUE

ANALYSIS OF VARIATION 1Q20X1Q21

O&M Revenue - Renewed Lines Law 12.783/13

At subsidiary Furnas (+ R$ 98 million): (i) Increase due to the change in tariff cycles, since in addition to the annual adjustment, we had the tariff review, based on the current regulation - Technical Note 119/2020-SGT / ANEEL - which details the readjustments of the Broadcasting Companies' RAPs and the effects of the review. The Tariff Review alone represents something around 18%, not counting the Adjustment Portion, which for this cycle was positive.

In the subsidiary Chesf (+ R$ 84 million): (i) the effect of the tariff revision of CC 061 retroactive to 2018, including in the caption of the installment of the calculation, divided into 3 years, considered in REH Aneel 2,725 / 20; annual readjustment, entry into operation of new facilities, reinforcements without prior RAP authorized included by Aneel for the 2020/2021 cycle, smaller variable portions, adjustment portion of previous cycles, since there are two distinct Homologatory Resolutions in one year.

At the subsidiary Eletronorte (+ R$ 76 million): (i) increase in the RAP ratified for the 2020/2021 cycle (REH nº 2,725 / 2020), which contributed to the increase in revenue billed by R$ 64.8 million; (ii) a reduction of R$ 8.2 million due to the increase in the amortization of the contractual asset (also due to the new approved revenue, which caused the increase in the balance of the contractual asset);

At subsidiary CGT Eletrosul (+ R$ 26 million (i) increase of R$ 23 million in revenue resulting from different effects, highlighting the Prepayment Apportionment with R$ 4.5 million, the Calculation Adjustment Portion with R$ 5 million and the additional new works totaling R$ 8.3 million; (ii) reduction of approximately 53% of the O&M RAP related to MP 579/2012, converted into Law 12,783 / 2013, which will occur gradually in 1/5 per cycle during the period 2018/19 to 2022/23, as stipulated by ANEEL in the periodic tariff review process.This review is retroactive to the cycle started in July / 2018, a fact that generated the requirement to return part of the RAP received, through Parcel Adjustment - PA The decrease in RAP, caused by the tariff review, reduced the renewed O&M Revenue by R$ 49 million in 1Q21.

O&M Revenue - Exploration Regime

In the subsidiary Chesf (+ R$ 36 million): revenue of a higher anticipation apportionment, a smaller variable portion, an adjustment portion of smaller previous cycles, as in the year there are the determination of two different Homologation Resolutions, the start of operation of new works in greater amount , annual tariff readjustment and tariff review of the 007/2005 and 006/2009 contracts with positive IRTs for the 2020/2021 cycle, in addition to the tariff readjustment on 7/1/20.

At subsidiary CGT Eletrosul (+ R$ 10 million): (i) repricing O&M, in 2020, of concession 004/2004, when the periodic tariff review was made at 10 million. In addition to this highlighted effect, the set of non-renewed concessions showed a balance between additions and reductions, considering tariff reviews, new works and other RAP items.

At subsidiary Eletronorte (+ R$ 4 million), mainly due to: (i) increase in billed revenue by R$ 13.2 million (REH nº 2,725 / 2020); (ii) a reduction of approximately R$ 2.2 million related to the increase in the amortization of contractual assets.

Construction Revenue – Transmission

Variation in Revenue reflects the lower volume of transmission projects being built by the company in 2021, linked to the authoritative resolutions of, with emphasis on the lower investment in contract 062/01 in Furnas (-R$ 48 million) and Chesf (-R$ 5 million), partially offset by subsidiary Eletronorte (+ R$ 19 million).

Contractual Revenue – Transmission

Variation in Revenue reflects: (i) increase in inflation indexes in 2021; and (ii) the increase in the balance of contractual assets due to the adjustments made in June / 2020, due to ANEEL's tariff reviews. The balance of contractual assets increased significantly due to the approval of the tariff review of the transmission concessions extended under the terms of Law 12.783 / 2013, granted by Aneel in June 2020, which approved the new Permitted Annual Revenue ("RAP") these concessions for the 2020-2021 tariff cycle, bringing the following changes to RBSE: (a) retrospective change to wacc for the years 2018 and 2019; (b) changes in the asset base, incorporating the write-offs occurred in the 2013-2018 cycle and the readjustment of the new replacement value of the assets associated with RBSE; (c) Incorporation of the payment of the controversial installment "Ke" that had been under judgment since 2017; and (d) 3-year split of differences between the amount effectively received between 2018 and 2019 and the installments now revised via the adjustment portion updated by IPCA. Highlight for increase in furnas of R$ 236 million, Chesf of R$ 114 million, Eletronorte R$ 105 million and CGT Eletrosul of R$ 83 million.

TABLE 06: OTHER OPERATING REVENUE

Others Revenues

Variation Analysis 1Q20X1Q21

At subsidiary Eletronorte (+ R$ 24 million): (i) Proinfa: R$ 14.5 million; (ii) Provision of services in the country: R$ 6.5 million; (iii) other revenues: R$ 5.4 million. On the other hand, the operation and maintenance service account registered a drop of R$ 3 million.

At subsidiary Chesf (+ R$ 11 million): (i) revenue from the provision of infrastructure sharing services in consolidated SPEs in the amount of R$ 9 million.

OPERATIONAL COSTS and expenses

TABLE 07: OPERATIONAL COSTS AND EXPENSES

Variation Analysis 1Q20X1Q21

Energy purchased for resale

At subsidiary Furnas (-R$ 207 million): (i) purchases made in 1Q20, to reduce the negative exposure in MCP (short market) taking advantage of the negative goodwill existing in short-term bilateral operations, as well as the tax benefit on settlement at CCEE, without comparison in 2021, totaling a decrease of R$ 102 million for the period; partially offset by (b) the price adjustment of the current purchase contracts of approximately 6% in the period, representing an increase of approximately R$ 13 million; and (ii) in the case of Energy Purchased for Resale in the Short Term, there was a reduction of R$ 106 million, due to the MCP strategy adopted by Furnas in 1Q20, as it had amounts retained at CCEE due to the judicialization of the sector and the amounts negative energy purchases presented in 1Q20 led to the use of such credit.

In the subsidiary Chesf (-R$ 55 million): (i) termination of the purchase contract in December / 2020 (reduction of 64 average MW), representing a reduction of R$ 15.8 million; (ii) change in purchasing strategy in 1Q21 (reduction of 138 average MW), with a reduction of R$ 46.5 million; Readjustment of existing contracts with an increase of R$ 4.8 million.

Partially offset by:

In the Holding (+ R$ 98 million): mainly due to the expansion of international energy exchange at the request of the National Interconnected System (SIN) in the same period in 2021. This situation was caused by the reduction in the volumes of the main hydrographic basins that comprise interconnected system and the drop in prices offered by Uruguay to the SIN.

At subsidiary Amazonas GT (+ R$ 4 million (i) The increase in costs in 1Q21 was due to the annual readjustment of contract prices that occur in November of each year of the contract. The index used for the readjustment of PIE contracts is the IGPM index, which in November 2020 had an accumulated increase of 23.14%.

At subsidiary CGT Eletrosul (+ R$ 5 million): (i) increase of 5.7% in the amount of energy purchased, which generated an additional cost of R$ 8.4 million, due to the seasonality of the period and consequently will have a lower amount for the other quarters of the year, since the annual purchase quantity is fixed; (ii) a 4% increase in the average acquisition price, increasing the cost by R$ 6.2 million. On the other hand, there was (iii) a reduction of R$ 10 million in the Short Term Market due to the energy purchased from CCEE in 1Q20, totaling R$ 6.9 million, without occurring in 1Q21, and (iv) negative variation of tax effects and financial costs of the PIS / COFINS discount of approximately R$ 3.1 million.

Charges on use of the electricity grid

In the subsidiary Furnas (+ R$ 26 million): the Tariffs for Use of the Transmission System in force in T1 2020 refer to ANEEL Approval Resolution No. 2,562 of 06/25/2019; the tariffs in force in T1 of 2021 refer to ANEEL Approval Resolution No. 2,726 of 07/14/2020. Between these two resolutions, some tariffs underwent significant readjustments, such as: Furnas HPP with 22.13% increase, Estreito HPP with 22.2% increase, Marimbondo HPP with 23.4% and Corumbá HPP with 20.6% increase.

At subsidiary Chesf (+ R$ 25 million): (i) readjustment of approximately 14% of TUST, determined by ANEEL Approval Resolution No. 2748/2020 (cycle 2020-2021).

At the subsidiary Eletronuclear (-R$ 5 million): (i) reduction of 4% in the transmission cost (R$ 1.4 million); (ii) 32% reduction in the Distribution cost (R$ 3.6 million) in the compared quarters considering that part of the Distribution cost was allocated in April 2021, due to pending clarifications on the invoice to be paid to Enel .Fuel for prod. electric power

In the subsidiary Amazonas GT (+ R$ 58 million): A) increase of R$ 63 million in the purchase of fuels, mainly due to a 12% increase in the price of raw materials, added to the 2% increase in the consumption of natural gas, caused by account of the increase in consumption at UTE Mauá 03, partially offset by the reduced expense recovery account that had B) R$ 5.5 million increase in the period, via CCC subsidy, due to (i) an increase of R$ 12.2 million, by UTE Mauá 3, due to the 13% increase in natural gas consumption; increase partially offset by (ii) a reduction of R$ 6.5 million, by UTE Aparecida, due to the low consumption of natural gas due to the unavailability of its generating units, due to the accident of two turbines, which led to the reduction -23% in natural gas consumption. The generating units in Block 1, suffered a loss in their driving machines, reaching the region of the high pressure compressor, and which will be recovered in a specialized workshop.;

At subsidiary Eletronuclear (+ R$ 24 million): (i) 22% increase in consumption of fissile uranium equivalent (Kg Ueqv), being 254.348 Kg Ueqv in 1Q20 and 310.747 Kg Ueqv in 1Q21, since in 1Q20 there was a halt in Angra 1 plant (1P25) for 61 days.

At subsidiary CGT Eletrosul (+ R$ 22 million): A) an increase of R $ 4 million caused by: (i) an increase of 18 thousand tons of coal, a variation of 3.4%, following the average generation, which grew by 4,0%. (ii) Readjustment in the main coal supply contract of 6.7%, which resulted in an increase of R$ 1.6 million between the periods, this contract represents 65% of the plant's consumption, and (iiI) from March a second supplier was hired in 2020 to guarantee the supply of fuel and not affect the generation of the plant with an additional cost of R$ 2.7 million, increases partially offset by (iv) a 22.3% reduction in consumption Fuel Oil, about R$ 2 million in the period; B) decrease of R$ 18 million in the fuel expense reimbursement reduction account, via CCC subsidy, caused by: (i) Order No. 2616/2020 / ANEEL, which established that the fuels used at the Candiota Plant will not be reimbursed in its entirety, leading to less recognition of fuel reimbursement as of September / 2020. In 2021, the reimbursement of coal is around 50% while in 1Q2020, 100% of the reimbursement with fuel was being accounted for.

Partially offset by, in the subsidiary Furnas (-R$ 32 million): (i) variation in the dispatch of the Santa Cruz plant, which presented in 1Q20 a generation of 534,918 MWh and in the same period of 2021 a generation of 272,552 MWh, representing a decrease of approximately 262,000 MWh.

Construction

At subsidiary Eletronorte (+ R$ 18 million): the resumption of investments in reinforcements and improvements after the low realization during 1Q20 due to the impacts of COVID-19.

Partially offset by subsidiary Furnas (-R$ 48 million): (i) Construction expenses in the Generation of March20 totaled 4.18 Million and in March 21 the amount was 7.63 Million. In transmission, the values for contract 062/01 in 2020 were 103.84 million and in 2021 it was 31 million. In the other contracts, the values of March 20 and March 21 totaled -25.25 million and 522 thousand, respectively.

OPERATIONAL EXPENSES

TABLE 08: PERSONNEL, MATERIAL, SERVICES AND OTHER

Variation Analysis 1Q20X1Q21

Personel

Salary readjustment, as of 12.1.2020, with no retroactive effect of 2.4%, as provided for in the Collective Bargaining Agreement;

At subsidiary Eletronorte (+ R$ 49 million): (i) non-recurring expenses of approximately R$ 64.3 million due to the dismissal of 241 employees that occurred between January and March 2021. It was planned to terminate 314 employees at the cost of termination of R$ 109 million. However, 1Q21 expenses include approximately R$ 64 million due to the dismissal of 241 employees between January and March 2021.

At subsidiary Furnas (+ R$ 19 million): i) Labor claim R$ 10.16 million (impacted by the payment of four lawsuits in Jan21); ii) CVM 600 adjustment R$ 8.2 million, due to the recognition of the sponsor's contribution to the BD Plan (transferred to ORA), in accordance with the new accounting procedure adopted in 2Q20.

In subsidiary Chesf (+ R$ 41 million): (i) increase in interest costs due to the actuarial liabilities of the CD and BD benefit plans (+ R$ 34 million), which has this liability linked to the; (ii) the value of Personnel not allocated to Investment in the period estimated at R$ 22 million. On the other hand, there was a reduction of R$ 7 million in medical expenses.

At subsidiary Eletronuclear (+ R$ 8 million): (i) adjustment to the vacation provision in 1Q20 in the amount of + R$ 21.5 million; offset by: (ii) reduction in Overtime + R$ 7 million and Dangerous Work + R$ 3 million, motivated by the non-occurrence of stoppage in 1Q21; (iii) reduction of Meal Ticket + R$ 3 million.

Material

At subsidiary Eletronuclear (-R$ 23 million): (i) in 1Q20, Angra 1 (1P25) stopped, in which there was a problem due to a short circuit in the connection of the excitratrix to the electric generator. The plant was stopped in the programmed period from 11/01/2020 until 02/14/2020, and beyond the programmed time, for another 26 days (from 02/15/2020 to 03/12/2020). Altogether, the 1P25 stop lasted 61 days, which affected 1Q20; (II) there was no plant shutdown in 1Q21.

At the subsidiary Amazonas GT (-R$ 17 million): (i) reduction of R$ 16 million in 1Q21 in the acquisition of direct application materials, used in the planned large maintenance of UTE Mauá 03, in 1Q20 these acquisitions added up to a value total of R$ 23 million while in 1Q21 this amount was only R$ 7 million; (ii) a reduction of R$ 1.3 million due to the variation in the adjustments account due to lack of inventory;

At subsidiary CGT Eletrosul (-R$ 6 million): (i) a 35% reduction in inputs from UTE Candiota III, mainly lime, which was partially offset by the average exchange rate variation of the dollar in 1Q21, which was 20% higher than in 1Q20 ; (ii) contractual renegotiation of the supply of lime, which took place in Aug / 20, resulting in a reduction of 178 R$/ ton, equivalent to a reduction of 18%, which is an important initiative of OBZ 2020.

ServiCES

At subsidiary Furnas (-R$ 23 million): (i) Reduction in the following items: (a) Accommodation by R$ -2.17 million; (b) Medical, Hospital and Dental Assistance in the amount of R$ -3.43 million; (c) Hired labor with approximately R$ -25 million - due to the launching of the termination amount of one of the PCC1 contracts in 1Q20, which was not repeated in 1Q21 and; (d) Consulting services in R$ -1.61 million.

At subsidiary Eletronuclear (-R$ 23 million): (i) in 1Q20, Angra 1 (1P25) stopped due to a short circuit caused by the connection of the excitratrix to the electric generator. The plant was stopped in the programmed period from 11/01/2020 until 02/14/2020, and beyond the programmed time, for another 26 days (from 02/15/2020 to 03/12/2020). Altogether, the 1P25 stop lasted 61 days; (II) there was no plant shutdown in 1Q21, therefore reducing service expenses. Savings from OBZ initiatives in the amount of R$ 8.9 million in the quarter. The estimated OBZ target for the period was R $ 10.2 million. In the subsidiary Chesf (-R$ 13 million): (i) decrease in consulting expenses [-3 million]; (ii) decrease in expenses with contracted labor [-R$ 5 million]; (iii) decrease in expenses with utilities and services [-R$ 2 million]; (iv) decrease in expenses with daily rates, travel and accommodation [-R$ 2 million].

In the subsidiary Eletronorte (-R$ 11 million): (i) reduction of expenses with Food Ticket of R$ 8.8 million, since these ticket expenses started to be recorded in the Personnel item; (ii) Accommodation: R$ 2 million; (iii) Consultancies: R$ 1.4 million.

Partially offset by:

At subsidiary CGT Eletrosul (-R$ 7 million): (i) increase of expenses with legal offices by R$ 4.4 million, mainly due to arbitration proceedings abroad whose expenses were impacted by the 20% exchange variation for the period to the dollar and 31% for the euro; (ii) environmental consultancies R$ 300 thousand and (IV) adhesion of new versions of Microsoft OFFICE 365 and Autocad 3D in the amount of R$ 1.7 million, partially offset by (iv) a reduction of R$ 440 thousand in travel in relation to the same period last year due to the effects of the Covid pandemic 19.

OtHERS

At subsidiary Furnas (-R$ 134 million), mainly due to (i) The Indemnities, losses and damages account, which in 1Q20 was impacted by the settlement of the Camargo Correa process (R$ 98 million) and by three installments of the agreement between Furnas and Inepar (R$ 13 million). In addition, (ii) R$ 20 million in court costs - fees also in 1Q20 notably, the fees paid in the Civil Procedure (Contractual Collection) 0150142-62.2010.8.19.0001 - CIEN Cia. De Interconexão Energética and in process 0155660-53.1998.8.19.0001 - Camargo Correa.

In the subsidiary CGT Eletrosul (–R$ 13 million): (i) a reduction of R$ 8 million related to commissions on debentures to be amortized; (ii) reduction of court costs by R$ 2.9 million in 1Q21 given that in 1Q20 there was an expense with costs related to international lawsuits. In 2021, the total amount of miscellaneous legal costs was only R$ 90 thousand, with the main R$ 38 thousand referring to the lawsuit involving the municipality of Águas Claras / MS, R$ 20 thousand related to labor lawsuits and R$ 12 thousand of indemnity process. The costs referred are those related to the costs of handling cases in the judiciary, while legal expenses are allocated to services (consultancy) refer to expenses with law firms, consultancies and specialists hired to produce material for the process (technical analysis , opinions, defense, etc.); (iii) reduction of R $ 860 thousand in contribution to CEPEL; (iv) a reduction of R$ 1.8 million related to expenses associated with fiber optic swap contracts, as per CPC 06 guidelines, these factors were partially offset by (v) an increase of R$ 2.3 million with Insurance and Facilities of Equipment due to the increase in costs observed in this sector.

In the subsidiary Eletronuclear (-R$ 18 million): (i) in 1Q20, there were higher expenses with taxes and contributions on financial revenues linked to the income of the Decommissioning Fund in the amount of R$ 14.0 million; (ii) postponement of commitments in affiliations in 1Q21, especially to the EPRI - Eletric Power Research Institute, in the amount of R$ 4.0 million, (iii) Contribution to ONS of R$ 0.1 million, which, as of 1Q21, became be classified in that group of accounts

Compensated, in part, by:

At subsidiary Eletronorte (+ R$ 22 million): (i) Write-off of assets: R $ 28.7 million (Energisa Acre); (ii) Rental of Generator Sets: R$ 27.8 million (Emergency assistance to the state of Amapá); (iii) Insurance - facilities, equipment and inventories: R$ 5.9 million; (iv) Expense recovery (reduction account): R$ 5.5 million. On the other hand, there was a reduction in: (v) Court costs: R$ 25.9 million; (vi) Insurance: R$ 4.4 million; (vii) Taxes: R$ 3 million; (vii) Car rental: R$ 2.4 million.

At subsidiary Chesf (+ R$ 52 million): (i) increase in labor costs by [+ R$ 6 million]; (ii) increase in expenses with indemnities, losses and damages by [+ R$ 29 million] with customers - provisional reduction of credits; (iii) expense recovery record at SPE TDG in 1Q20, which did not occur in 1Q21 [R$ 18 million].

Depreciation and Amortization

TABLE 09: OPERATING PROVISIONS

The positive values in the table above signify a reversal of the provision.

ANALYSIS OF VARIATION 1Q20X1Q21

The variation is mainly explained by:

Provision for Contingencies of R$ 932 million: (i) In the Holding, R$ 450 million of provisions for contingencies, highlighting R$ 436 million of provision for compulsory loan lawsuits, especially as a result of judicial approvals of calculations that differ from the Company's understanding about the treatment of the incidence of interest of 6% pa, which is based on Special Appeal 1,003,955 / RS, which has the effect of repetitive appeal; (ii) In the Subsidiary Chesf, R$ 363 million of provisions for contingencies, with emphasis on the update of the GSF provision of R$ 185 million, impacted, to a large extent, by the increase in PLD and hydrological situation between the periods compared and by the update of the Factor process K, in the amount of R $ 96 million, due to the correction of the process, mostly by IGPM, without the occurrence of a new provision; (iii) In the subsidiary Furnas, provision for contingencies in the amount of R $ 78 million, with emphasis on the lawsuit filed by Engevix in the amount of R$ 41.7 million and Acciona Concessões Rodovia do Aço, in the amount of R$ 19 million.

PCLD Consumers and resellers Chesf, in the amount of R$ 93 million in 1Q21, mainly due to: (i) Ligas do Brasil - Libra, R$ 39 million; (ii) Energisa Sergipe, R $ 10 million; and (iii) Companhia Energética de Alagoas - CEAL, R$ 3 million, indexed by the IGPM;

Partially offset by the reversal in 1Q21 of R$ 39.1 million related to the default allowance for loan losses of Amazonas D against Amazonas GT.

SHAREHOLDINGS

TABLE 10: SHAREHOLDINGS

ANALYSIS OF VARIATION 1Q20X1Q21

Shareholdings

The main highlights were: (i) positive variation in the equity pickup of associates in the amount of R$ 260 million, with emphasis on CTEEP and CEEE; partially offset by the worsening of the equivalence result in SPEs Madeira Energia (-R$ 33 million) and Norte Energia (-R$ 18 million).

FINANCIAL RESULT

TABLE 11: FINANCIAL INCOME AND EXPENSES

FINANCIAL RESULT

ANALYSIS OF VARIATION 1Q20X1Q21

In 1Q21, the financial result improved, with a negative result of R$ 584 million in 1Q21 and a negative result of R$ 1,172 million in 1Q20. The main variations were in the accounts of:

Debt Charges went from R$ 1,172 million in 1Q20 to R$ 493 million in 1Q21, mainly due to the reduction in indebtedness and the lower rates of the indexes.

Gains and losses on Derivatives went from a net expense of R$ 119 million in 1Q20 to a net revenue of R$ 285 million in 1Q21, with emphasis on subsidiary Eletronorte, due to asset pricing as provided for in the energy sale agreement entered into with Albras, which is mainly linked to the LME (Aluminum) and dollar quotation.

Partially offset by:

Revenue from Financial Investments suffered a sharp reduction, from R$ 558 million in 1Q20 to R$ 91 million in 1Q21, mainly due to the reduction in the cash balance in 1Q21 and the reduction in the rate of the indexes that remunerate investments.

1.2 EBITDA Consolidated

TABLE 12: EBITDA DETAIL

Note: As of 2019, the Company started to consider, in its recurring EBITDA, the RBSE revenue from concessions extended under Law 12,783 / 2013, in order to maintain a protocol similar to the debenture covenants issued in 2019. The Ebitda of the Recurring 2020 considers this adjustment of RBSE revenue to compare recurring EBITDA for 2019, for comparative purposes, and also the mandatory effects of IFRS 9 and 15 as explained in Explanation 4 to our financial statements. In addition, considering the privatization of the distributors was completed in April 2019, and these operations are no longer part of its core business, the company treated the material effects of financial income, expenses, PL reversals and allowances for loan losses as non-recurring. prospective (CPC 48) of loans contracted with them before or as a result of the privatization process, although revenues and eventual provisions arising from contracted loans may continue to affect the company's accounting result until its complete exhaustion. However, they were treated as recurring outstanding allowance for doubtful accounts of distributors and outstanding debts related to energy supply.

TABLE 13: 1Q20 EBITDA CONCILIATION

Recurring Cash Generation with Adjustment of Regulatory Transmission RAP

1.3       Consolidated Results by Continued Operations segment:

TABLE 14: FINANCIAL STATEMENT BY SEGMENT – R$ THOUSAND

1.3.1. INDEBTEDNESS AND RECEIVABLES

TABLE 15: GROSS DEBT AND NET DEBT

TABLE 16: Debt Maturity Schedule, excluding RGR owed by third parties (for which Eletrobras is a mere manager) and including the debentures of the Holding and the Subsidiaries:

*For further information, see note 20 to ITR 1Q21.

Gross Consolidated Debt Total – R$ billion

Parent Company Gross Debt

Table 17: Foreign Exchange Exposure

Ratings

Table 18: Ratings

*CreditWatch

Financing and loans granted (receivables)

Table 19: Receivables

* For more information, see note 8 to ITR 1Q21.

The graphs and table below exclude charges, allowance for loan losses and financial assets of Itaipu.

Total Consolidated Loans and Financing Receivables – R$ billion

Does not include: receivables from Itaipu's financial assets of R$ 1.3 billion and PCLD of R$ 758 million and current charges.

Loans and financing receivable Parent company - R$ million

Does not include charges and allowance for loan losses.

Table 20: CCC credits assigned by Privatized Distributors

In the privatization process of the distributors, CCC credits were assigned, which are still being analyzed and supervised by Aneel. These credits are activated in the Company's Financial Statements, of 03/31/2021, in two accounts, which are the Right of Reimbursement and Financing Receivable, according to Explanatory Notes 15 and 11 of 1Q21, and detailed below:

REIMBURSEMENT RIGHT

Registered Net Assets

* The balance of R$ 1,990 million from Amazonas consists of a return obligation to CCC in the order of R$ 481.6 million referring to the final inspection result of the first and second period carried out by Aneel, and a credit receivable from the Treasury National economic and energy “inefficiency” of R $ 2.47 billion. The credit for economic and energy inefficiency is updated by Selic. The amount to be returned to CCC must be discounted from the credit receivable from CCC in relation to the amounts assigned from the other distributors.

Explanatory Note 11 - Loan and Financing

Note: The R $ 442.4 million credit in the table above originates from CCC credits assigned by Amazonas to Eletrobras, however, as it is not part of the inspection period mentioned above, and because it is a current credit, it has already been paid by CCC to Amazonas Distribuidora, then it was converted into the distributor's debt with Eletrobras.

Total Credits Granted (Note 11+ Note 15)

The National Electric Energy Agency - Aneel recognized, by decision of its collegiate board of directors, on March 10, 2020, (i) the right to receive credits from the Ceron Fuel Consumption Account, in the amount of R$ 1,904 million (a July 2019 prices), referring to the inspection of the benefits due in the period from July 30, 2009 to June 30, 2016, considered as the first period of the inspection process (“First Inspection Period”), credits assigned to Eletrobras at the time privatization of said distributor; and (ii) the right to receive credits from the Fuel Consumption Account - CCC to Companhia de Eletricidade do Acre (“Eletroacre”), in the amount of R $ 192 million (at July 2019 prices), related to the inspection of benefits due in the period from July 30, 2009 to June 30, 2016, credits also assigned to Eletrobras on the occasion of the privatization of said distributor.

Aneel's Board of Directors also approved, on March 10, 2020, the obligation to return R$ 2,061 million (at March 2019 prices), referring to the CCC's monthly inspection and reprocessing process paid to Amazonas Distribuidora de Energia SA ( “Amazonas Energia”), from July 2016 to April 2017, referring to the Second Inspection Period. With this decision, Amazonas Energia had completed its entire inspection process, since Aneel's Board of Directors had already resolved, on March 19, 2019, the result of the First Inspection Period for CCC reimbursements to Amazonas Energia, with the company having the right to receive a credit of approximately R $ 1,592 million (at September 2018 prices), to be offset against credits to be returned. The net balance of Law credits assigned by Amazonas Energia, positive by R $ 2.43 billion, refers, in addition to the contract signed with the distributor with the payment of the amount of R $ 442 million in current credits, to the revenue of disallowances from CCC arising from the criteria of economic and energy efficiency, a right recognized by Law 13,299 / 2016, in the historical amount of R $ 1,358 million to be paid by the National Treasury. Eletrobras updated the value of economic and energy “inefficiency” by Selic until 03/31/2021.

Aneel has not yet completed the inspection processes for CCC reimbursements for the first and second periods of Boa Vista Energia, also assigned to Eletrobras and recorded in the Financial Statements, as well as the second inspection period for Ceron and Eletroacre. It was established by Aneel's Board of Directors that it is only after the completion of all of these inspection processes, and the approval of the results, that the total net value of the credits should be included in the annual budget of the sectorial fund CDE for payment to Eletrobras. It has not yet been determined by Aneel whether the final value of the CCC inspection processes will be paid to Eletrobras in a single or in installments. Aneel did not comply with Eletrobras' request to include in the CDE budget for the year 2021 the payment of installments of the total net value of the four CCC inspection processes already decided by the agency.

During the years 2020 and 2021, in addition to voting on the three aforementioned processes closed by the Agency, the only movement in the inspection processes was the disclosure by Aneel, dated April 6, 2020, of a new technical note (NT nº 49 / 2020 – SFF-SFG-SRG / ANEEL) referring to Boa Vista's first inspection period. The previous NT was from April 2018. In this new NT issued, in addition to updating the base date of the information for February 2020, the Agency accepted Eletrobras' request regarding the withdrawal of the return of amounts received by the distributor regarding the initial tanking, which according to Order No. 2,793 / 2015, the amount must be returned in the last month of operation of the Monte Cristo and Novo Paraíso TPPs, the day before the connection to the SIN. As the State of Roraima has not yet been interconnected, Aneel accepted the request to withdraw the return of funds from the distributor to the CCC account during the inspection period. As the agency accepted exactly the amount of Eletrobras' claim, considered as a probable claim by Aneel, there was no change in the recorded value of credits assumed by Boa Vista, only monetary restatement of credits by IPCA and Selic (“inefficiency” credits) ). Thus, due to the information contained in Aneel's NT 49/2020, Eletrobras would have credits receivable from CCC ceded by Boa Vista, in the amount of R $ 104 million (at Feb / 20 value), referring to the first inspection period of this distributor .

Accordingly, all changes in the 1Q21 of CCC / CDE credits assigned to Eletrobras and recorded in the Right of Reimbursement were due to the monetary adjustment of the credits by IPCA and SELIC, with no new impacts. Aneel has committed to issue technical notes for the second inspection period

Table 21: Receivables RBSE Transmission

On June 30, 2020, the National Electric Energy Agency - ANEEL approved the tariff review of the transmission concessions extended under the terms of Law 12,783 / 2013. Consequently, it approved the new Permitted Annual Revenue (“RAP”) of these concessions for the 2020-2021 tariff cycle, which brought the following summarized changes, with an impact in relation to the cash flow projection of RBSE receivables:

In April 2021, ANEEL approved the re-profiling of the financial component of RBSE, of the subsidiaries Furnas, Eletronorte, CGT Eletrosul and Chesf. The decision provides for a reduction in the payment curve of the amounts relating to the periodic review of the RAPs associated with transmission facilities for the 2021/2022 and 2022/2023 cycles and an increase in the payment flow in the cycles after 2023, extending such installments until the end of the year. cycle 2027/2028, preserving, however, the remuneration for the WACC, more details see note 36.1 of 1Q21. The effects of profiling will only impact the Company's Financial Statements in 3Q21.

Reprofiling RBSE: Impact as of 3Q21

The above amounts include TFSEE charges (Electricity Service Inspection Fee) and resources for R&D and Energy Efficiency, and do not include PIS and Cofins. In addition, the data refer to the tariff cycle and not to the calendar year.

1.4. Investment

Table 22: INVESTMENTS BY SEGMENT - R$ million

IN 1Q21 R $ 519 MILLION WAS INVESTED OF THE R$ 1,297 MILLION BUDGETED FOR THE QUARTER.

In generation, total investments amounted to R$ 312 million, of which R$ 273 million related to corporate ventures, with an emphasis on: Angra 3 R$ 133 million, Angra 1 and 2 R$ 88 million. In generation SPEs, the highlight was R$ 21 million for the Pindaí Complex. In maintenance of generation, R$ 88 million was realized at Eletornuclear and R$ 31 million in Furnas,

In transmission, total investments were R$ 142 million in corporate ventures, with emphasis on:

Chesf R$ 70 million, Furnas R$ 30 million, CGT Eletrosul R$ 22 million, Eletronorte R$ 20 million. There was no emphasis on achievements in SPEs.

As for the non-realization of investments, there was frustration of R$ 778 million, of which -R$ 461 million in corporate generation, with emphasis on the non-realization of -R$ 349 million in Angra 3 due to the end of Renuclear. In addition, there was a frustration of -R$ 44 million in maintenance of Angra 1 and 2 and of -R$ 33 million in UTE Santa Cruz.

In transmission, the non-realization of corporate investments was R$ 198 million, with emphasis on: -R$ 65 million due to delays in bids and licenses, -R$ 30 million due to impacts from COVID-19 and -R$ 32 due to optimization of costs.

In SPES, the total non-realization was R$ 36 million, being: (i) -R$ 13 million in Chapada do Piauí and Teles Pires Participações, in the amount of -R$ 26 million, both due to the postponement of investments.

1.5. COMMERCIALIZATION

1.5.1. ENERGY SOLD IN 1Q21 – GENERATORS - TWH

In terms of the evolution of the energy market, Eletrobras Companies, in 1Q21, sold 51.4 TWh of energy, against 53.5 TWh traded in the same period of the previous year, which represents a decrease of 4%. These volumes include the energy sold from the plants under the quota regime, renewed by Law 12.783 / 2013, as well as by the plants under the exploration regime (ACL and ACR).

1.5.2. ENERGETIC BALANCE

TABLE 23: ENERGETIC BALANCE

2.
Result Analysis of
Parent Company

In 1Q21, Eletrobras Holding posted net income of R$ 1,601 million, an increase of 33% compared to net income of R$ 1,202 million in 1Q20. The 1Q21 result was decisively influenced by: (i) Income from equity interests, of R$ 2,725 million, influenced mainly by the result of the subsidiaries. Partially offset by: (ii) the negative impact of the Financial Result in the amount of R$ 281 million in 1Q21, mainly due to the negative effect of exchange rate fluctuation in the period; (iii) negative effect on provisions for legal contingencies, in the amount of R$ 471 million in 1Q21, resulting from the provisions related to the compulsory loan lawsuits in the amount of R$ 436 million.

EVOLUTION OF RESULT - R$ MILLION

Note: The analysis of the results of each subsidiary can be found in Appendix II of the Investor Report.

2.1       Shareholdings in the Parent Company

In 1Q21, the result of Equity Holdings positively impacted the Company's result by R$ 2,725 million, mainly due to the equity in results of investments in subsidiaries, while the result in 1Q20 was R$ 1,904 million (the value of 1Q20 was restated due to the remeasurement of transmission assets - see Note 4.4 to the Financials. Highlight for improvement in Eletronorte's results (+ R$ 684 million), Furnas (+ R$ 737 million), partially offset by the lower result in Eletronuclear (-R$ 241 million).

2.2       Operating Provisions of Parent Company

In 1Q21, Operating Provisions had a negative impact on the Parent Company's result by R$ 471 million, compared to a provision of R$ 76 million in 1Q20. This variation is mainly explained by the (i) negative effect on provisions for legal contingencies, in the amount of R$ 451 million in 1Q21, with the compulsory loan lawsuits in the amount of R$ 436 million, against a reversal of R$ 141 million in 1Q20; There are also other events that occurred in 1Q20 and that had less impact in 1Q21, such as: (ii) reversal of the provision in the unsecured liability in subsidiaries in the amount of R$ 119 million (without impact in 1Q21); (iii) provision for Investment Losses in the amount of R$ 116 million in 1Q20 and R$ 15 million in 1Q21; and the provision for allowance for loan losses of R$ 195 million in 1Q20 and R$ 11 million in 1Q21.

Table 24: Operating Provisions (R$ million)

2.3       Parent Company Financial Result

In 1Q21, the Financial Result had a negative impact on the Parent Company's result by R$ 281 million, as well as in 1Q20, with a negative result of R$ 377 million. The result was mainly influenced by: (i) exchange rate fluctuation in the period, given the passive exchange exposure. The result of the net foreign exchange variation went from a negative amount of R$ 165 million in 1Q20 to a negative result of R$ 446 million in 1Q21; (ii) Interest, commission and fee income went from R$ 411 million in 1Q20 to R$ 257 million in 1Q21, due to the prepayment of part of the debt by Furnas and Eletronorte in February 2020 and the drop in the interest rate interest between periods; (iii) Revenue from financial investments went from R$ 478 million in 1Q20 to R$ 75 million in 1Q21 due to a drop of R$ 1.7 billion in cash and, mainly, due to the reduction in profitability indexes. On the other hand: iv) Debt charges went from a negative result of R$ 729 million in 1Q20 to a negative result of R$ 280 million in 1Q21 due to: (a) a reduction in the balance of Eletrobras Holding's debt by approximately R$ 2.9 billion; (b) decrease of 1.5 p.p. in the Selic / CDI rates; and (c) the effect of the costs of issuing bonds in 1Q20; (v) net monetary restatements had a positive result in the amount of R$ 311 million in 1Q21 and R$ 46 million in 1Q20;

Table 26: Financial Result (R$ million)

3.
General Information

Data of 03/31/2021

SHARE CAPITAL

Eletrobras' capital stock, on March 31, 2021, totaled R$ 39,057 billion, represented by 1,568,930,910 shares, of which 1,288,842,596 are common shares and 280,088,314 are preferred shares.

TABLE 27: CAPITAL STRUCTURE

Stock Analysis

Shares

Table 28: B3, ELET3 and ELET6

Evolution of Shares Traded at B3

ADR PROGRAMS

TABLE 29: NYSE, EBRN AND EBRB

Evolution of Shares Traded in ADR

MARKETLETTER 1Q2021 Disclaimer: This material contains calculations that may not produce an accurate sum or result due to rounding performed.

 

Latibex - MADRID MARKET

TABLE 30: LATIBEX, XELTO AND XELTB

Evolution of Foreign Currencies

Nº of Employees

PARENT COMPANY

TABLE 31: EMPLOYEES FOR WORKING TIME

TABLE 32: EMPLOYEES BY FEDERATION STATE

CONTRACTED / OUTSOURCED LABOR

TABLE 33: CONTRACTED / OUTSOURCED LABOR

ROTATION INDEX (HOLDING)

TABLE 34: ROTATING INDEX HOLDING WITH PDC

Balance Sheet

(R$ thousand)

(R$ thousand)

Income Statement

(R$ thousand)

Cash Flow Statement

(R$ thousand)