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____

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INTRODUCTION

Rio de Janeiro, March 27, 2020

A Eletrobras (Centrais Elétricas Brasileiras S.A.)

[B3: ELET3 e ELET6 – NYSE: EBR e EBR-B – LATIBEX: XELTO e 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 136 Special Purpose Companies, on this date, announces its results for the period.

2019

In 2019, Eletrobras posted a net profit of R$ 10,744 million, lower than the R$ 13,348 million obtained in 2018, mainly due to positive non-recurring events from the previous year, as shown below. The 2019 profit is comprised of Net Income from continuing operations of R$ 7,459 million and Net Income of R$ 3,285 million from discontinued operations (distribution), highlighting the privatization of Amazonas Energia, which is no longer consolidated by Eletrobras. Recurring profit for 2019 was R$7,058 million, 9% higher than the R$ 6,799 million of 2018.

Net Operating Income went from R$ 25,772 million in 2018 to R$ 27,726 million in 2019, with emphasis on the entry into operation of TP Mauá 3 of the Amazonas GT and receipt of GAG Improvement related to generation concessions renewed by Law 12,783 / 2013 . Ebtida IFRS, in the amount of R$ 19,007 million in 2018, fell to R$ 10,257 million in 2019, impacted by the non-recurring event in 2018 of reversal of the impairment and onerous contract of Angra III in the amount of R$ 7,243 million against a provision for the same constrtuction of R$ 462 million in 2019. Recurring Net Operating Revenue grew 7.5%, from R$ 25,738 million in 2018 to R$ 27,676 million in 2019. Recurrent Ebtida grew 5.3%: R$ 12,540 million in 2018 and R$ 13,210 million in 2019 and the Net Debt/recurring EBITDA indicator was 1.6, demonstrating the success of the Company's deleveraging measures.

4th QUARTER OF 2019

In the fourth quarter of 2019 (4Q19), Eletrobras posted a net profit of R$ 3,120 million, lower than the net profit of R$ 13,752 million obtained in 4Q18, also due to non-recurring impacts in 2018. The profit of 4Q19 is comprised of Net Income from continuing operations of R$ 4,872 million and Net Loss of R$ 1,752 million from discontinued operations (distribution). Recurring profit in 4Q19 was R$ 1,328 million, lower than in 4Q18 of R$ 2,967 million. The drop down in recurring income was strongly influenced by fair value  adjustment of RBSE, which went from a net revenue of R$ 1,143 million in 4Q18 to a net expense of R$ 1,258 million in 4Q19, due to the remeasurement of the RBSE asset considering the update of the “Ke” remuneration portion as of July 2017 by the regulatory transmission WACC and IPCA until the measurement date; the Change of the discount rate of the next NTN-B from 4.6% in December 2018 to a rate close to the regulatory remuneration of 6.4%; and beginning of the receivables of the “Ke” installment in June 2021 according to the Ordinance 120, until June 2025. This change in estimate has no cash effect but only an accounting adjustment for active measurement.Net Operating Revenue increased 2.9%, from R$ 7,134 million in 4Q18 to R$ 7,339 million in 4Q19. Recurring Net Operating Revenue rose 7.6%, from R$ 6,872 million in 4Q18 to R$ 7,395 million in 4Q19. Recurrent Ebtida increase by 4%, reaching R$ 3,248 million in 4Q19 against R$ 2,935 million in 4Q18.

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OTHER 2019 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) Revenue from Procel Retroativa, GAG Retroativa and construction revenue from Generation Generation; (3) Excludes item (2), costs of the Extraordinary Retirement Plan (PAE) and the Consensual Dismissal Plan (PDC), expenses with independent investigation, Extraordinary Consulting at the Holding, expenses related to the Inepar / Furnas agreement, retroactive payment to Enel by TUSD Eletronuclear, 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, Provision related to the water resources inspection fee (TFRH) , ANEEL CCC provision; Allowance for loan losses from third parties to the RGR (CCEE transfer), and PCLD Estimated prospective credit loss (CPC 48), Expiry of Concession and Indemnification for Third Parties of Furnas; (4) Excludes item (3) and monetary adjustment for the compulsory loan contingency; Eletropaulo process financial income and activation of non-recurring tax credit.

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I |  ANALYSIS OF THE CONSOLIDATED RESULT (R$ MILLION)

TABLE 02: CONSOLIDATED RESULTS

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TABLE 03: RECURRING CONSOLIDATED RESULT

* Non-recurring adjustments mentioned in the Highlights.

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I.1 Main variations of FINANCIAL STATEMENTS

Variation Analisys 2018X2019

Operating REVENUE

TablE 04: GENERATION Revenue

Highlights in the 2018X2019 Variation Analysis

Energy supply to distribution companies

·        Increase in revenue from Amazonas GT (+ R$ 2,978 million) related to the revenues of independent producers PIES and four gas plants that were received from Amazonas Distribuidora after the unbundling occurred in December 2018 and the supply of CCEAR by Amazonas GT (Mauá 3);

·         In Furnas (+ R$ 287 million), due to the increase in sales at ACL (increased by the reduction in the Leftovers and Deficits Compensation Mechanism - MCSD in the Regulated Contracting Environment);

·        Eletronuclear: (+ R$ 124 million) mainly due to the 2.8% increase in the Fixed Revenue of the Angra 1 and 2 Plants (R$ 92.9 million / year) in accordance with ANEEL Approval Resolution No. 2,509/2018;

·        Eletronorte (–R$ 486 million): termination of the contract with Boa Vista Energia, with a reduction of 84% or R$ 184 million, in addition to a 16% reduction in sales of energy sold at ACL, impacted by the drop in volume sold (2018: 1,616 MWm x 2019: 1,300 MWm) and a 7.6% drop in the price at ACR (2018: R$ 363 / MWh x 2019: R$ 243 / MWh).

Supply

·        At Chesf (-R$ 98 million) Reduction in the period of about 65 average MW in the consumption of industrial customers reached by Law 13,182/, in comparison with the same period of the previous year, due to: ( i) a problem at the plant of an industrial consumer in the state of Alagoas, from May to December/2019; (ii) Stoppage for maintenance of an industrial consumer in Bahia in September / 2019. The occurrence of these facts contributed to the increase in revenue at CCEE;

·        In the subsidiary Furnas (+85 million), price adjustment of the current contracts for the Itumbiara Plant auctions, governed by Law 13,182/2015, specific to final consumers, resulting in an increase in revenue of approximately R$ 27 million and new contracts that started supplying as of 07/01/2018 positively impacted revenue by R$ 62 million. On the other hand, there were differences between the amounts recorded, referring to Art.10, §10 of the referred Law, being in 2018 approximately R$ 4 million higher than 2019.

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CCEE

·        In the subsidiary Amazonas GT (-R$ 298 million), due to the fact that the company earned revenue from the sale of energy in the Short-Term Market of Aparecida and Mauá 3 in 2018, which did not occur in the same period of 2019, due to the beginning of the beginning of the supply of CCEAR - Electricity Commercialization Contract in the Regulated Environment;

·        In the subsidiary Chesf (+ R$ 386 million), due to: (i) termination of supply contracts in 4Q18 (about 80 average MW), whose energy was not rehired in 2019 (de-contracting reflected in the negative variation in the supply item ); (ii) reduction of 140 average MW in industrial consumption (Law 13,182/2015), as justified in the "Supply" item; and (iii) partially offset by reduction in the purchase ballast of SPE ESBR by about 40 average MW in 4Q18 (reduction reflected in the "Energy Purchased for Resale" account). These factors even offset the reduction in the price of settled energy, which reached an average value of R$ 207.00 / MWh in 4Q19, against the value of R$ 493.00 / MWh in the same period of 2018.

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

·        Review of the methodology for calculating GAGs for the 2018-2019 cycle, with an increase in the value of the total GAG, especially due to the recognition of the GAG ​​improvement of approximately R$ 1 billion per year.

·        Annual readjustment of RAG according to Aneel Homologatory Resolution No. 2,587 / 2019;

Construction Revenue

·        Lower level of investment made in 2019, but with no effect on results as it has an equivalent value in construction expenses.

Transfer Itaipu

·        Variation of the tariff on which the monetary restatement calculated based on the American price indices Commercial Price and Industrial goods, and also due to the recognition of the interministerial decree 04/2018 of the MME and the Ministry of Finance that determines the revenue of Itaipu.

TablE 05: TRANSMISSION REVENUE

O&M Revenue - Renewed Lines Law 12.783/13

·        Readjustment of the RAP approved for the 2019/2020 cycle (Homologatory Resolution 2565/19) referring to the 2019-2020 tariff cycle.

O&M Revenue - Exploration Regime

·        Eletrosul (+46 million) increase in the installments of RAP due to the 4.66% readjustment by the IPCA and, mainly, and adjustments resulting from CPC 47 of TBSE, Eletrosul's Subsidiary, of R$ 19 million in 2019 and an increase RAP by R$ 22 million due to the fact that TBSE became controlled in 2018.

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Construction Revenue

·        The variation is mainly due to the higher volume of investments compared to the previous year, especially Chesf (+ R$ 61 million)

RBSE - Lines renewed by Law 12.783/13

·        Readjustment of Approval Resolution No. 2,565 / 2019, increasing the IRR of the receivables flow, in addition to the amortization of the balance receivable, with emphasis on the subsidiaries Furnas (-R$ 251 million) and Chesf (-R$ 222 million);

Contractual Revenue - Transmission

·        At the subsidiary Eletrosul (+ R$ 35 million), mainly due to the increase in the balance of contractual assets due to: a) in 2018 improvements were made, but revenue was not recognized due to the absence of criteria by Aneel. For the 2019/2020 cycle, Aneel, through Technical Note 115/2019-SGT, estimated approximately R$ 49.5 million in investments for 5 years starting in 2018, with annual revenue of R$ 3.9 million , also retroactive. The criteria as well as future revenue may be reevaluated, and the receipt will initially be through inclusion in the calculation portion; and (b) increase, in 2019, of the implementation of reinforcements in electricity transmission installations authorized by ANEEL

·        In the subsidiary Chesf (+ R$ 8 million) due to the higher registration of remuneration on the financial asset due to the entry of new projects during the year of 2019, with emphasis on the authorization of the contract 61.

TablE 06: OTHER OPERATING REVENUE

Others Revenues

·        In the subsidiary Furnas (-R$ 65 million), variation due to a) lower gain in Actuarial Revenue (-R$ 10 million), in 2018 it was R$ 182 million and in 2019 it was R$ 172 million; b) revenue resulting from the effect of the increase in Santo Antônio's stake in 2018 without a corresponding in 2019 (-R$ 34 million); and c) Eletropar's four-month billing in 2018 regarding the onerous assignment of infrastructure to Eletronet, in the total amount of R$ 16 million;

·        At subsidiary Chesf (-R$ 6 million): a) decrease in revenue from operation and maintenance services -R$ 3 million; and b) drop in engineering services revenue - R$ 3 million; on the other hand, we had an increase in income from the provision of O&M services from ETN, which was incorporated in 4Q19 in the amount of R$ 2 million.

OPERATIONAL COSTS

TABLE 07: OPERATIONAL COSTS

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Highlights in Variation Analysis of 2018X2019

Energy purchased for resale

·        At the subsidiary Amazonas GT (+ R$ 571 million):, the increase was due to the incorporation of the energy purchase contracts from independent producers PIES in 2019. This did not occur in the same period of 2018. The average price of the contracts of PIE´s (independent prducers)  is R$ 314.40 / MWh, and the contracted energy is 305 average MW / month. In 2018 there was only the constitution of the Leasing without the registration of the purchase of energy.

·        At subsidiary Furnas (+ R$ 158 million), price adjustment as defined in the contracts and increase in the contracted amount.

Fuel for production electric power

·        Readjustment of 10% of Tust tax;

·        At the subsidiary Amazonas GT (+ R$ 39 million) due to the increase in energy generation.

Fuel for production electric power

·        Due to the assumption of the gas contract signed with Petrobras, by Amazonas GT (+ R$ 983 million), as a result of the unbundling and privatization of Amazonas Distribuidora.

Construction

·        The variation is mainly due to the lower volume of investments compared to the previous year.

OPERATIONAL EXPENSES

TABLE 08: PERSONNEL, MATERIAL, SERVICES AND OTHER

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Highlights in Variation Analysis of 2018X2019  

Personnel

·        The increase is mainly due to the costs with the Consensual Dismissal Plan, which reflects partial effects due to the termination dates and temporary obligations with the health plan. 905 employees were terminated in 2018 and 1,726 in 2019. Expenses with PDC (indemnity and health plan) were R$ 681 million in 2019 and R$ 379 million in 2018. In addition, reversals of the provision for profit sharing (PLR)) in 2018, in an amount of more than R$ 154 million, in relation to the PLR ​​reversals in 2019.

Material

·        In subsidiary CGTEE (+ R$ 22 million), due to the increase in Consumption of CAL and other materials due to the poor quality of the coal delivered in 2019. For 2020, investments in the coal processing plant are ongoing to reduce this expense;

Services

·        At the Parent Company (+ R$ 32 million), mainly due to the contracting of services related to the issuance of debt securities and consultancy related to the SAP / ERP project.

·        At Amazonas GT (+ R$ 23 million), mainly due to the maintenance of UTE Mauá 3 plant;

·        Compensated by the reduction in Furnas (- R$ 37 million) mainly due to the reduction in outsourced services, whose partial effects only occurred in the last quarter of 2019; and the reduction of Eletronuclear (-R$ 44 million) due to the occurrence of one less stoppage of the Plant.

Others

·        At subsidiary Furnas (+ R$ 426 million), mainly due to the occurrence of non-recurring events such as the payment of the Third Party agreement (+ R$ 321 million), indemnity payment to Ampla (+ R$ 111 million) and Inepar (+ R$ 85.5 million);

·        Partially offset by Eletronorte (-R$ 131 million): reduction in expenses with UTE Araguaia rent (R$ 58 million), resulting from the suspension of the thermoelectric power plant; reversal of leasing (R$ 42 million) due to the adoption of IFRS 16 and lower write-off of fixed assets (R$ 37 million).

TablE 09: OPERATING PROVISIONS

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Operational provisions / reversals

·        Provision for contingencies in the amount of R$ 1,757 million, of which R$ 775 million refer to compulsory loan processes;

·        Reversal of the impairment and onerous contract of Angra III in the amount of R$ 7,243 million in 2018 against a provision of R$ 462 million in 2019., due to the delay of the work in 11 months;

·        PCLD of R$ 621 million related to the financing agreement with the distributor Amazonas Energia, which is in default of approximately R$ 186 million. The additional amount of R$ 435 million is a prospective risk analysis of the Company in the light of CPC 48 and was treated as non-recurring, for management purposes.

SHAREHOLDINGS

TABLE 10: SHAREHOLDINGS

Variation Hightlights

Shareholdings

·        Decrease in the equity result of coligate companies in 2019, highlighting CTEEP due to the adjustment in RBSE, according to Eletrobras accounting practices (-R$ 808 million), partially offset by the increase in equity in ESBR (+ R$ 430 million) and SPE Madeira (+ R$ 341 million).

FINANCIAL RESULT

TABLE 11: FINANCIAL INCOME AND EXPENSES

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financial REVENUE:

In 2019, financial income decreased by 27%. The main variations were in the accounts of:

·•67% drop in interest, commission and fees revenue, mainly due to the accounting of the agreement with Eletropaulo in the amount of R$ 1,064 million in 2018;

·Active exchange rate variations, with a record of R$ 4,151 million in 2018 and R$ 2,662 million in 2019. This variation was partially offset by the passive exchange rate variation, resulting in a positive net exchange rate variation of R$ 249 million;

Partially offset by:

·Adjustment to fair value, with revenue recording of R$ 368 million in 2019, and a net expense in 2018 due to the remeasurement at fair value of the RBSE asset considering the Update of the “Ke” remuneration portion as of July 2017 by the transmission regulatory WACC and IPCA until the measurement date; the change of the discount rate close to the NTN-B from 4.6% in December 2018 to a rate close to the regulatory remuneration of 6.4%; and the beginning of receipt in June 2021 for the term of Ordinance 120, until June 2025.

financial EXPENSE:

In 2019, financial expenses decreased by 16%, from R$ 10,446 million in 2018 to R$ 8,740 million in 2019. The main variations occurred in the accounts of:

·Adjustment at fair value, with an expense record of R$ 921 million in 2018, and a financial revenue in 2019, due to the remeasurement at fair value of the RBSE asset considering the Update of the “Ke” remuneration portion as of July 2017 by the regulatory transmission WACC and IPCA until the measurement date; the change of the discount rate close to the NTN-B from 4.6% in December 2018 to a rate close to the regulatory remuneration of 6.4%; and the beginning of receipt in June 2021 for the term of Ordinance 120, until June 2025.

· Passive exchange variations, with a record of R$ 4,364 million in 2018 and R$ 2,627 million in 2019. This variation was more than offset by the active exchange variation;

Partially offset by:

·•Debt charges, which increased by R$ 567 million, mainly due to charges for the new debentures issued by Holding and, in the subsidiary Eletronuclear, due to the disqualification of the UTN Angra 3 project for capitalization of interest due to non-resumption the plant's work;

HIGHLIGHTS IN THE ANALYSIS OF THE VARIATION 4Q18X4T19

OPERATING INCOME

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TABLE 12: GENERATION REVENUE

Analysis of variation 4Q18X4Q19

Energy supply to distribution companies

·        Increase in revenue of the subsidiary Amazonas GT (+ R$ 664 million) related to the revenues of independent producers PIES and four gas plants that were received from Amazonas Distribuidora after the unbundling occurred in December 2018 and the supply of CCEAR by Amazonas GT (Mauá 3);

·        At the subsidiary Eletronuclear (+ R$ 67 million) due to the 2.8% increase in the Fixed Revenue of the Angra 1 and 2 Plants (R$ 92.9 million / year) according to ANEEL Approval Resolution No. 2,509 / 2018, which represents a R$ 23.2 million positive effect in the quarter; There was also an increase in the excess portion of energy in the period by R$ 43.8 million (R$ 14.0 million in 2018 / R$ 57.8 million in 2019), which highlights the fact that there was a scheduled shutdown during o 4Q18, of 40 (forty) days for maintenance and exchange of nuclear fuel at the Angra 1 plant (1P24), which took place between 10/27 to 12/05/2018; In terms of the physical quantity of energy produced at the Angra 1 and 2 plants, there was an improvement in performance in the period, with an increase of 551.7 thousand MWh in the compared period, with an increase of 15.9% (3.477 million MWh between October to Dec / 2018 compared to 4.028 million MWh between Oct and Dec / 2019)

·        At subsidiary Eletronorte (-R$ 271 million) due to the 21.91% drop in sales to energy traders due to the 24.29% reduction in the volume contracted at ACL (4Q18: 2,491 MWm x 4Q19: 1,886 MWm); there was also a reduction in the average price billed in the ACL by 12% (4Q18: R$ 204.25 / MWh x 4Q19: R$ 180.38 / MWh). On the other hand, there was an increase of 8.92% in ACR revenue due to an increase of 17.13% in the amount of energy sold; partially offset by the 6.87% drop in the average price (4Q18: R$ 266 / MWh x 4Q19: R$ 248 / MWh

Supply

·        At the subsidiary Chesf (-R$ 48 million) due to the reduction of approximately 140 average MW in the consumption of industrial customers reached by Law 13,182/2015 (related in particular to UHE Sobradinho), due to a problem at the plant an industrial consumer in the state of Alagoas and a maintenance stop for an industrial consumer in Bahia in September / 2019; The occurrence of these facts resulted in an average price of R$ 136 / MWh, as well as contributing to the increase in revenue in the "Short-term Electricity" account.

·        At the subsidiary Eletronorte (+ R$ 19 million) due to the increase in the contracted volume by 1.57% (4Q18: 889 MWm x 4Q19: 903 MWm) and the average price increase of 7.51% (4Q18 : R$ 105.85 MWh x 2019: R$ 113.80 MWh).

CCEE

·        At subsidiary Chesf (+ R$ 161 million), termination of supply contracts in 4Q18 (about 80 average MW), whose energy was not re-contracted in 2019 (lack of contracting reflected in the negative variation in the supply item); reduction in the purchase ballast of ESBR by about 40 average MW in 4Q18 (reduction reflected in the "Energy Purchased for Resale" account); (iii) reduction of 140 average MW in industrial consumption (Law 13,182/2015), as justified in the "Supply" item, releasing this energy for the short term. These factors even offset the reduction in the price of settled energy, which reached an average value of R$ 207MWh in 4Q19, against the amount of R$ 493 / MWh in the same period of 2018.

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·        At subsidiary CGTEE (+ R$ 70 million), mainly due to the resumption of the generation capacity of the post-overhaul plant with the sale of 136 Mw / average at an average price of R$ 268 in 2019.

·        At the subsidiary Amazonas GT (-R$ 45 million), as in 4Q18, the company earned revenue from the sale of energy in the MCP, from the average generation of the TPP`s Aparecida and Mauá Bloco 3. This did not happen in the same 2019 period;

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

·        (-R$ 143 million) due to the recognition of the value of GAG retroactive improvement in 4Q18 (-R$ 258 million), partially offset by the revision in the methodology for calculating GAGs for the 2018-2019 cycle. Excluding the effect of retroactive accounting, we would have a revenue growth of R$ 116 million (14%).

Construction Revenue

·        Lower level of investment made in 2019, but with no effect on results as it has an equivalent value in construction expenses.

Transfer Itaipu

·        Variation of the tariff on which the monetary restatement calculated based on the American price indices Commercial Price and Industrial goods, and also due to the recognition of the interministerial decree 04/2018 of the MME and Ministry of Finance that determines the revenue of Itaipu.

TablE 13: TRANSMISSION REVENUE

O&M Revenue - Renewed Lines Law 12.783/13

·        Chesf (-R$ 115 million) mainly due to the decrease in items related to the receipt of MP 579 resulting from the tariff revisions between the resolution of the 2018/2019 cycle and the resolution of the current cycle 2,565 / 19, such as: anticipation apportionment revenue and adjustment portion. The other effects can be attributed to the determination by IFRS15 of the undertakings associated with authoritative resolutions of CC 061/2001 and the projection of the new receipt flow in accordance with the approval resolution published in July/2019 in the approximate amount of R$ 69 million.

·        Partially compensatedby the readjustment of the RAP approved for the 2019/2020 cycle (Homologatory Resolution 2565/19) referring to the 2019-2020 tariff cycle.

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O&M Revenue - Exploration Regime

·        At subsidiary Amazonas GT (-R$ 32 million), due to a non-recurring accounting adjustment of approximately R$ 35 million in 4Q18. Disregarding the effects of the adjustments, the accounts would have a variation of 72% between periods, being R$ 6.2 million in 4Q19 and R$ 3.6 million in 4Q18

·        In the subsidiary Chesf (-R$ 14 million), due to the adjustments of the Variable Portion and other Adjustment Installments and the effects of the application of IFRS 15 on non-renewed contracts.

Construction Revenue

·        The variation is mainly due to the higher volume of investments compared to the previous year, especially Chesf (+ R$ 43 million)

RBSE - Lines renewed by Law 12.783 / 13

·        At subsidiary furnas (+R$ 108 million): annual adjustment of RAP by approximately 3.5% and of Variations in Variable Portion, representing an increase of approximately 9%, in addition to the variation in IPCA which was 0.39% and that of 4Q19 was 1.76%.

Contractual Revenue - Transmission

·        In the subsidiary Chesf (+ R$ 25 million) due to the higher registration of the remuneration on the concession asset due to the entry of new projects during the year of 2019, with emphasis on the authorization of the contract 61.

·        In the subsidiary Amazonas GT (+ R$ 38 million), variation is mainly due to reversal in 4T18 R$ 42 million related to financial income of the year 2018.

TABLE 14: OTHER OPERATING REVENUE

Others Revenues

·        Holding (-R$ 87 million) due to a reversal of the procel value of R$ 74 million.

·        In the subsidiary Furnas (-R$ 46 million) due to the allocation of actuarial gain (+ R$ 10 million), and the effect of the Santo Antônio stake increase in 4Q18 (R$ 34 million) without a correspondent in 4Q19;

OPERATIONAL COSTS

TABLE 15: OPERATIONAL COSTS

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Analysis of variation 4Q18X4Q19

Energy purchased for resale

·        At the subsidiary Amazonas GT (+ R$ 426 million), impacted mainly by the reversal effect of the Leasing, around R$ 410 million in 4Q18 and R$ 107 million in 4Q19. Disregarding this impact, the variation would have been around R$ 27 million due to the increase in energy purchases to supply the dispatch below the TPP Aparecida agreement.

·        At subsidiary Furnas (+ R$ 90 million) influenced by the increase in amounts settled as debt in the short-term market in 2019, which resulted in an increase of approximately R$ 53 million in this item. This fact is mainly due to the worsening in the GSF (62% x 73%) linked to the increase in PLD (295.23 x 199.08 R$ / MWh), on average, between the months of October and November 2019 in relation to 2018. There was also an adjustment of contract prices, representing an increase of approximately R$ 17 million and an increase of the contracted amount by  R$ 9 million and the consolidation of Brasil Ventos with an impact of R$ 14 million;

·        At subsidiary Eletronorte (+ R$ 75 million), mainly because, in 2018, there was a reversal of R$ 49 million in energy purchases. In addition, in 2018, the purchase was booked at CCEE, in the amount of R$ 76 million and R$ 117.6 million in 2019, as well as, in 2019, the purchase of Sinop energy of R$ 1 million, due the energy purchase contract of 2.83 MW average effective from 2019.Fuel for production electric power

Fuel for production electric power

·        Due to the assumption of the gas contract entered into with Petrobras, by Amazonas GT (+ R$ 52 million), as a result of the unbundling and privatization of Amazonas Distribuidora.

Construction

·        Chesf (+R$ 114 million), due to lower investments compared to the previous year;

·        In Furnas (-R$ 25 million), especially to investments in the transmission system and renewed plants, being more relevant in the Funil plant, plus the effect of the reduction due to the write-off of fixed assets that occurred in contract 062

OPERATIONAL EXPENSES

TABLE 16: PERSONNEL, MATERIAL, SERVICES AND OTHER

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Analysis of variation 4Q18X4Q19

Personal

·        Increase due to expenses non-recurring with PDC (R$ 524 million in 4Q19 against R$ 86 million in 4Q18) and the greater reversal of PLR provision in 4Q18 (R$ 254 million reversal in 4Q18 against R$ 96 million reversion in 4Q19). These movements offset the reduction of personnel costs due to the cost containment policy established by the Company, with PDC, dangerousness and overtime.

Material

·        At CGTEE (+ R$ 17 million), due to the higher consumption of lime to compensate for the difficulties presented in burning coal, due to the fact that coal is presenting higher average sulfur levels in 2019 (representing 70% of total expenditure in Materials in the period). Thus, it is necessary to use higher consumption of virgin lime production input. However, in 2020, the coal processing plant is expected to start operating, which will reduce the sulfur content of coal by 25%, as predicted;

·        At Eletronuclear (-R$ 9 million) mainly, because, in 4Q2018, there was a scheduled shutdown of 40 (forty) days for maintenance and exchange of nuclear fuel at the Angra 1 plant (1P24), which took place between 27.10 to 05.12 .2018. During the execution of these activities, there is a large use of applied materials (R$ 15.9 million in 4Q2018). In 4Q2019, there was only an expense of R$ 2.8 million with pre-shutdown activities for the Angra 1 plant (1P25), to be carried out only at the beginning of 1Q2020; ii) it is attributed to the nominal increase in the amount of R$ 3.8 million, between the compared periods, the other non-seasonal and non-routine activities of maintenance of the plants.

·        At Amazonas GT (+ R$ 16 million) mainly due to the Maintenance contract (O&M) of UTE Mauá 3.

 Services

·        At the subsidiary Eletronuclear, (-R$ 41 million) mainly, because, in 2018, the maintenance stoppage of Angra 1 (1P24) occurred in 4Q18 with expenses of R$ 46.5 million, with no activity record equivalent in 4Q2019; There was also a nominal increase of R$ 13.4 million, representing an increase of 15.3% in this item, justified by the average inflationary adjustments in contracts (variation of 4.3% - IPCA / 12 months) and higher average exchange rate (USD) in the period (variation of 8.1%); offset by the effect of IFRS16 in 4Q19 not in 4Q18 in the amount of R$ 5.7 million.

·        At the subsidiary Amazonas GT (+ R$ 16 million) mainly due to the Maintenance contract (O&M) of UTE Mauá 3.

Others

·        At subsidiary Furnas (+ R$ 269 million), mainly due to the payment of the indemnity of the outsourced court agreement in the amount of R$ 321 million in November 2019, which was already provisioned in 3Q19 and, therefore, was offset by reversal of the provision in an amount higher than expenses in the account of others, with a positive final impact on the quarter's results. In addition, in 4Q19, 3 installments related to the agreement between Furnas and Inepar were launched, totaling approximately R$ 12 million.

Depreciation and amortization

There is no relevant variation.

TablE 17: OPERATING PROVISIONS

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

The positive values in the table above mean reversal of provision.

The variation is mainly explained by:

·        Provision for Contingencies in the amount of R$ 718 million, of which R$ 326 million refer to Compulsory Loan processes;

·        Reallocation to “Discontinued Operations” of the Aneel CCC Provision in the amount of R$ 1,729 million, meaning a reversal of the provision of this amount in “continued operations” in 4Q19 and a constitution in the same amount in “discontinued operations”.

·        Reversal of the Provision related to the Termination of Outsourced Companies in Furnas in the amount of R$ 354 million, due to the effectiveness of the termination, burdening the “others” account in the amount of R$ 321 million.

·        PCLD of R$ 621 million related to the financing agreement with the distributor Amazonas Energia, which is in default of approximately R$ 186 million. The additional amount of R$ 435 million is a prospective risk analysis of the Company in the light of CPC 48 and was treated as non-recurring, for management purposes.

SHAREHOLDINGS

TABLE 18: SHAREHOLDINGS

Variation

Shareholdings / Other Income and Expenses

·        Improvement in the equity result of SPE ESBR Jirau (+ R$ 326 million) due to the reversal of the impairment provision in 4Q19 of R$ 748 million and improvement in the equity result of SPE Madeira (+ R$ 220 million) due the reduction of costs with energy purchased for resale and debt renegotiation. These movements were partially offset by the reduction in the results of Norte Energia (-R$ 135 million) and colligate companies.

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

FINANCIAL RESULT

TABLE 19: FINANCIAL INCOME AND EXPENSES

Financial income:

In 4Q19, financial income decreased by 83%, from R$ 2,232 million in 4Q18 to R$ 390 million in 4Q19. The main variations were in the accounts of:

·        Adjustment to fair value in the net amount of revenue R$ 1,143 million and a financial expense in the 4Q19 in the financial revenue. The variation is due to the remeasurement at fair value of the RBSE asset considering the Update of the “Ke” remuneration portion as of July 2017 by the WACC regulatory of the transmission and IPCA until the measurement date; the change of the discount rate close to the NTN-B from 4.6% in December 2018 to a rate close to the regulatory remuneration of 6.4%; and the beginning of receipt in June 2021 for the term of Ordinance 120, until June 2025. If we consider the effects on financial expense of adjustment to value.

·        86% drop in interest income, influenced by the reduction in the rate of indexers (Selic, CDI).

Financial Expenses:

In 4Q19, financial expenses increased by 46%%, from R$ 1,600 million in 4Q18 to R$ 1,699 million in 4Q19. The main variations occurred in the accounts of:

·        Adjustment to fair value, with a negtive record of R$ 1,258 million in 4Q19 and a financial revenue in the 4Q18, due to the reasons explained above.

·        Reduction in debt charges of 28%, mainly due to the reduction in the rate of indexers (Selic, CDI).

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

I.2 EBITDA ConsolidaTED 

TABLE 20: EBITDA DETAIL

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

ince 2Q19, 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 adjusted 2018 Ebitda considers this adjustment of RBSE revenue to compare 2018 recurring EBITDA, for comparative purposes, and also the mandatory effects of IFRS 9 and 15, as explained in 4 of 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 relevant effects of financial income, expenses, PL reversals and allowances for loan losses as non-recurring. prospects of loans contracted with them before or as a result of the privatization process, which significantly affected the company's result in 2019, 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 loan losses of distributors. These recurring adjustments related to the distributors, adjusted the recurring EBITDA 2019 by R$ 435 million.

The adjustments made to the pro forma Ebitda refer to non-recurring events or events that are expected to be dealt with under the PDNG 2019-2023. However, there are risks and uncertainties related to the Company's business, such as, but not limited to, general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and the value of the Real, changes in volumes and pattern of use of electricity by the consumer, competitive conditions, payments related to our receivables, changes in the levels of rain and water in the reservoirs used to operate our hydroelectric plants, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with the Securities and Exchange Commission and the United States Securities and Exchange Commission, which may change these estimates and expectations of Management. Thus, the future results of the Companies' operations and initiatives may differ from current expectations and the investor should not rely exclusively on the information contained herein.

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

I.3   CONSOLIDATED RESULT BY SEGMENT OF CONTINUED OPERATIONS:

TablE 21: FINANCIAL STATEMENT BY SEGMENT (EXPLANATORY NOTE 44 FROM THE DF) – R$ MIL

I.3.1. INDEBTEDNESS AND RECEIVABLES

TABLE 22: GROSS DEBT AND NET DEBT

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

TABLE 23: FINANCING PORTFOLIO PAYABLE

The nominal weighted average cost of debt at the end of the third quarter of 2019 was 5.57% (6.59% in 4Q18).

TABLE 24: DEBT MATURITY SCHEDULE, EXCLUDING RGR DUE TO THIRD PARTIES (FOR WHICH ELETROBRAS IS A MERGE MANAGER) AND INCLUDING HOLDING AND SUBSIDIARIES 'DEBENTURES:

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

Ratings

TABLE 25: Ratings

*CreditWatch

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

FINANCING AND LOANS GRANTED (RECEIVABLE)

The financing and loans granted are made with the Company's own resources and external resources raised through international development agencies, financial institutions and resulting from the launch of securities in the national and international financial market.

All financing and loans granted are supported by formal contracts signed with the borrowers. The receipts of these amounts, for the most part, are foreseen in monthly installments, amortizable over an average term of 10 years, with the average interest rate, weighted by the portfolio balance, of 6.75% per year.

The parent company has a loan with Itaipu with an exchange adjustment clause that represents 41% of the total consolidated portfolio (30% on December 31, 2018). The other financings and loans provide for updating based on indexes that represent the level of domestic prices in Brazil and reach 59% of the balance of the consolidated portfolio (70% on December 31, 2018).

The parent company has a loan with Amazonas Distribuidora de Energia in the amount of R$ 3.9 billion, which substantially represents non-capitalized receivables in the process of disposal of corporate control. These contracts were renegotiated with a grace period of up to 3 years for amortization of the principal, during this grace period only interest is received. In addition, the renegotiation considered the period of 18 months for the presentation of real guarantees, which must be previously assessed and approved by Eletrobras' Management.

In addition to the aforementioned financing, Eletrobras, until April 30, 2017, was responsible for the management of the Global Reversion Reserve (RGR), a sectorial fund, having been responsible for granting financing, with the use of these resources, for the implementation of several sectoral programs. As of May 2017, with the enactment of Law 13.360/2016, CCEE took over this activity. However, there are still financing carried out before this date, due by third parties, managed by Eletrobras.

According to Decree 9.022/2017, which regulates the aforementioned law, Eletrobras is not the guarantor of these operations taken by third parties, however, it is responsible for the contractual management of financing contracts with RGR resources signed until November 17, 2016, which must be transferred to the RGR, within a period of up to five days, counted from the date of the effective payment by the debtor agent.

RGR REPASS

With the sale process of the distributors completed, the transfer of the management of RGR resources to CCEE in accordance with Law 13.360/2016 and in line with the provisions of Decree No. 9.022/2017, as of June 2019, the Company revised the form to present the amounts raised and transferred to third parties, with funds from RGR, in order to more adequately present the resources under Eletrobras's responsibility for those loans and financing that do not constitute Eletrobras debt and should be paid off by third parties with RGR, being Eletrobras responsible only for the contractual management of these loans. Accordingly, the amounts as of December 31, 2019 referring to receivables from loans and financing granted with funds from RGR to third parties were segregated from other receivables from Eletrobras and have equivalent liabilities (see Note 22).

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

TABLE 26: RECEIVABLE

In relation to provision for doubtful settlement (PCLD), it refers mainly to the contract with the distributor Amazonas Energia, which is in default of approximately R$ 180 million. The additional amount of R$ 25 million is a prospective risk analysis of the Company in the light of CPC 48.

TABLE 27: CCC CREDITS ASSIGNED TO ELETROBRAS BY PRIVATE DISTRIBUTORS

In the privatization process of the distributors, CCC credits were assigned, which are still being analyzed and inspected by Aneel. These credits are activated in the Company's Financial Statements, of 12/31/2019, in two accounts, which are the Right to Reimbursement and Financing Receivable, according to Notes 9 and 12 of 4Q19.

Below we detail the credits, for which provisions were made as technical notes were issued by Aneel glossing part of the amounts.

Note 12 - Right to Reimbursement

Registered Net Assets