Independent Auditors’ Limited Assurance Report

To the Executive Board and

Other Stakeholders

Itaipu Binacional

Curitiba - PR

Introduction

We were contracted by Itaipu Binational (Itaipu or “Company”) with the purpose of applying limited assurance procedures on the sustainability information disclosed in Itaipu’s 2018 Sustainability Report, for the year ended December 31, 2018.

Responsibilities of Itaipu Binational administration

The management of Itaipu is responsible for the proper elaboration and presentation of the sustainability information disclosed in the 2018 Sustainability Report according to the Standards for sustainability reporting of Global Reporting Initiative- GRI and with the internal controls it has determined as necessary to enable the elaboration of this information free of relevant distortion, regardless of whether caused by fraud or error.

Responsibility of the independent auditors

Our responsibility is to express a conclusion about the information disclosed in the 2018 Sustainability Report, based on the limited assurance work conducted in accordance with the technical Advisory (CT) 07/2012, approved by the Federal Council of Accounting and elaborated based on NBC TO 3000 (Assurance Assignment Other than Audit and Review), issued by the Federal Council of Accounting-CFC, which is equivalent to the international standard ISAE 3000, issued by the International Federation of Accountants, applicable to non-financial information. These standards require compliance with ethical requirements, including independence requirements, and the work is performed for the purpose of obtaining limited security that the information disclosed in the 2018 Sustainability Report, taken as a whole, is free from material misstatement.

A limited assurance procedure conducted in accordance with NBC TO 3000 (ISAE 3000) consists primarily of inquiries to the management of Itaipu and other company professionals involved in the preparation of the information contained in the 2018 Sustainability Report, as well as the application of procedures to obtain evidence that enables us to assure on the sustainability information taken as a whole. A limited assurance work also requires the execution of additional procedures when the independent auditor becomes aware of matters that lead him to believe that the information disclosed in the 2018 Sustainability Report, taken as whole, may present relevant distortions.

The selected procedures were based on our understanding of the aspects related to the compilation, materiality and presentation of the information contained in the 2018 Sustainability Report and other circumstances of the work and our consideration of areas and processes associated with material sustainability information disclosed in the 2018 Sustainability Report, where relevant distortions could exist. The procedures comprised:

1. planning of the work: consideration of the materiality of aspects for the activities of Itaipu, the relevance of the information disclosed, the volume of quantitative and qualitative information and the operating systems and internal controls that served as the basis for the elaboration of Itaipu’s 2018 Sustainability Report. This analysis defined the disclosures to be tested in detail;
2. understanding and analysis of the information disclosed in relation to the management approach of material aspects;
3. Analysis of the processes for the elaboration of the 2018 Sustainability Report and its structure and content, based on the principles of content and quality of the Standards for reporting sustainability of the Global Reporting Initiative-GRI (GRI-Standards);
4. Evaluation of the non-financial disclosures sampled:
   • understanding of the methodology of calculations and procedures for compiling the disclosures through interviews with the managers responsible for the consolidation of the information;
   • application of analytical procedures on quantitative information and inquiries about qualitative information and its correlation with the disclosures in the 2018 Sustainability Report;
   • analysis of evidence supporting the disclosed information;
   • visits to Itaipu’s plant and offices for application of these procedures, as well as items (b) and (c);
5. analysis of the reasonableness of reasons for the omissions of performance disclosures associated with aspects and topics pointed out as materials in the materiality matrix of the company;
6. confrontation of financial indicators with financial statements and/or accounting records;

We believe that the information, evidence, and results obtained in our work are sufficient and appropriate to substantiate our conclusion in a limited manner.

Scope and Limitations

The procedures applied in a limited assurance work are significantly less extensive than those applied in a reasonable assurance work. Consequently, they do not allow us to obtain security that we take knowledge of all matters that would be identified in a reasonable assurance work, which aims to issue an opinion. If we had performed a reasonable assurance work, we could have identified other issues and possible distortions that may exist in the information contained in the 2018 Sustainability Report.

Non-financial data are subject to more inherent limitations than financial data, given the nature and diversity of the methods used to determine, calculate or estimate this data. Qualitative interpretations of materiality, relevance and accuracy of data are subject to individual assumptions and judgments. Additionally, we do not perform any work on data reported for previous periods, to evaluate the adequacy of its policies, practices and performance in sustainability, nor in relation to future projections.

Conclusion

Based on the procedures performed, described in this report, nothing has come to our attention that leads us to believe that the information contained in Itaipu’s 2018 Sustainability Report has not been compiled, in all relevant respects, according to the Standards for sustainability reporting of the Global Reporting Initiative-GRI (GRI-Standards) and with the records and files that served as the basis for their preparation.

Sao Paulo, May 31, 2019

KPMG Assessores Ltda.
CRC 2SP034262/O-4 F-SP

Eduardo V. Cipullo
Accountant CRC 1SP135597 / O-6

KPMG Financial Risk & Actuarial Services Ltda.

Ricardo Algis Zibas
Managing PartnerS