CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") hereby informs its shareholders and the market in general that it received, on November 16, 2017, from B3 S.A ("Brasil, Bolsa, Balcão"), the Official Letter 1743/2017-SAE, as transcribed below, requesting clarifications regarding the news published by the newspaper "Valor Econômico", on November 16, 2017, under the heading "Eletrobras will cut more investments". Official Letter No. 1743/2017-SAE free translation

"Subject: Official Letter 1743/2017-SAE Centrais Elétricas Brasileiras S.A. - Eletrobras

Mr. Armando Casado de Araújo Investor Relations Officer

Ref .: Request for clarification on news in the press Dear Officers,

In a news article published by Valor Economico newspaper on 11/16/2017, under the heading "Eletrobras will cut more investments", among other information, it is stated that:

  1. This company has a high financial leverage, 4.1 times the net debt ratio over Ebtida. Its goal is to reduce this ratio to less than 3 times by the end of 2018;

  2. Regarding the investments, the expectation is to end the year with contributions of just over R$ 5 billion (which have already fallen from R$ 8.5 billion, last year, to R$ 3.7 billion until September);

  3. The Extraordinary Retirement Program (PAE) had an adhesion of 2,108 employees, which will save R$ 877 million per year. Another layoff plan, which provides for the adhesion of 2,500 employees, in Rio, Brasilia, Recife and Florianopolis, will be launched in December and will end in August 2018.

LISTED

We request clarification on the indicated items, until 11/17/2017, with your confirmation or not, as well as other information considered important."

Thus, in compliance with the Offical Letter in reference, the Company hereby informs the following:

  1. As the Company disclosed to the market, on November 13, 2017, through the Marketletter on the Quarterly Information for the period ended on September 30, 2017 and the presentation of the Conference Call held on November 14, 2017, the "Net Debt/Adjusted EBITDA" indicator reached 4.1 times, approaching the target established in the "Financial Discipline" strategy set forth in the Business and Management Master Plan ("PDNG") 2017-2021, properly disclosed to the market through the Relevant Fact of November 17, 2016;

  2. The goal established in the Company's Business and Management Master Plan ("PDNG") 2017-2021 of maintaining its "Net Debt/Adjusted EBITDA" indicator equal or less than 4 times is intended to reduce its financial leverage;

  3. Regarding the investments for 2017, we refer to the Company's Market Announcement, disclosed on November 16, 2017, in response to Official Letter No. 374/2017/CVM/SEP/GEA-1, which has all the clarifications about this subject;

    LISTED
  4. Regarding the launch, goals, employee adhesions and savings of the Extraordinary Retirement Program (PAE) and the Early Retirement Plan (PID), all information has already been subject to prior disclosure to the market, through appropriate channels, including through the aforementioned Business and Management Master Plan ("PDNG") 2017-2021, the Marketletters on the Quarterly Information for the periods ended on July 30, 2017 (2Q17) and on September 30, 2017 (3Q17), and the presentation of the Conference Call to the market on November 14, 2017;

  5. All documents mentioned above, such as the Business and Management Master Plan ("PDNG") 2017-2021, disclosed to the market through the Relevant Fact of November 17, 2016, the Marketletters on the Quarterly Information for the periods ended on July 30, 2017 (2Q17) and on September 30, 2017 (3Q17) and the presentation of the Conference Call held on November 14, 2017, are available on CVM website (www.cvm.gov.br), Eletrobras' website (www.eletrobras.com/ri) and were duly filed in the New York Stock Exchange (NYSE), U.S. Securities and Exchange Commission (SEC) and Madrid Stock Exchange - Latibex, and are available to all investors.

  6. In view of the foregoing, the Company understands that all data and information published by the press were previously published to the market by the Company, through the appropriate channels, pursuant to CVM Instruction No. 358/02.

Rio de Janeiro, November 16, 2017.

Armando Casado de Araujo

LISTED CFO and Investor Relations Officer

Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 16 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 November 2017 22:47:07 UTC.

Original documenthttp://eletrobras.com/en/ri/ComunidadoseFatos/Market Announcement - 11.16.2017 - Official Letter 1743.pdf

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