AXIA Energia SA

Good morning, ladies and gentlemen. Welcome to Axia Energia's conference for the discussion of the earnings of the second quarter of 2026. Present here today are Mr. Ivan de Souza Monteiro, President of Axia Energia, Mr. Elio Wolff, Executive Vice President, Mr. Eduardo Haiama, Vice President of Finance and Investor Relations, Ms. Camila Araujo, Vice President of Governance and Sustainability Mr. Italo Freitas, Vice President of Commercialization and Energy Solutions Mr. Juliano Dantas, Vice President of Technology and Innovation Mr. Marcelo de Siqueira Freitas, Vice President of Legal Affairs Mr. Renato Carreira, Vice President of Learning, People and Services Mr. Robson Pinheiro de Campos, Vice President of Engineering and Projects Mr. Rodrigo Lemp Vice President of Regulation, Institutional and Markets We would like to inform that this event is being recorded and will be made available on the company's investor relations website along with the presentation being shared today both in Portuguese and English To view the presentation in your preferred language select the corresponding tab located in the upper left corner of the screen Portuguese screen for Portuguese or English screen for English. For those who require simultaneous translation, a tool is available via the globe icon labeled Interpretation located at the bottom center of your screen. Upon selecting it, please choose your preferred language. For those listening to the video conference in English, there is an option to mute the original audio in Portuguese by clicking on Mute Original Audio. For the Q&A session, if you would like to ask a question, please use the Q&A icon at the bottom of the screen, providing your name, company, and question. As a standard, your name will be announced for you to ask your question live. At that time, a request to unmute your microphone will appear on your screen. If you prefer not to open your microphone live, please inform us in the Q&A fields alongside your question so that our operator can read it aloud. Before we proceed, we would like to clarify that any statements made during this conference call regarding the company's business outlooks, projections, operational and financial goals constitute the beliefs and assumptions of Axia Energia's executive management as well as information currently available to the company. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements. We now invite Mr. Ivan Monteiro, President of Axia Energia, to begin the presentation.

Please proceed, Mr. Ivan.

Good morning, everyone. The first and second quarters of the first half of the year marked by the strong expansion of our investments, highlighting the modernization of our equipment, focusing on the increase of operational resilience, as well as the acceleration of disbursements in the transmission segment. Coming from the successful participation of AXIA Energia in the auctions carried out thus far, we also captured a better margin in energy trading The positive effects in the management of our stake with the conclusion of relevant operations in the second quarter of this year, maintaining the reduction trajectory and the volume of our contingencies exemplified with the reduction in the inventory of provisions for the compulsory loans. Finally, the payment of our shareholders. We announced the year-to-date 7.7 billion VILs to redeem Class C preferred shares. I turn the floor to our VP, Eduardo Haiama, who will continue with the presentation. Good morning, everyone. Thank you, Ivan. Moving to slide five, talking about the highlights of the quarter's earnings. Our EBITDA reached 6.7 billion, up 21.5%, basically due to the Marcos Jose Lopes, Rodrigo Lima Nascimento, Elio Gil de Meirelles Wolff, Antonio Varejao de Carvalho Dantas, Marcelo de Carvalho Freitas Filho GENERATION was the main contributor for this higher earnings of the quarter, reaching a unit generation margin. One will look at the free market and ACL plus MCP of 96 this quarter compared to 73 BRLs in the same quarter of the previous year. We were the winners in the last transmission auction with a Projected NIL CAPEX of 668 million and RAP of 50 million. In this quarter, we also completed the migration to B3's Novo Mercado, the segment of the highest governance level at B3. As always, we are committed to every quarter we review our capital allocation methodology and with the boards we approved An additional allocation of 3.7 billion BRLs in the first half of the year, totaling 7.7 billion BRLs when we consider the 4 billion already approved in the first quarter. In addition, this morning we published a material fact with a new redemption. The first redemption of P&C shares was a test. This is also a test in its own way. In the first redemption, we had an operation of 30 million that was successful. Now we reduced the period of redemption that was up to 16 business days before from the announcement to the payment, reducing it by three business days. We are now doing a new 2 billion BRL redemption. Finally, we've concluded the divestment of a series of minority stakes and the acquisition of control of HPP Chris Irmãos on slide 6. Now, just to mention again the increase in regulatory, adjusted regulatory EBITDA as a result of the better contribution margin of generation and as a result of that having a direct impact on income Partially offset by the worsening of financial results due to the interest rates in the period and the slightly higher leverage. On slide 7, this is important, we greatly increased the investments that are being made from previous auctions that we won, the transmission auction, as well as the allocations that we had in T&E, the investment in the revitalization of Itaipu from 534 million in the first quarter of last year to close to 2 billion now, this quarter. As for reinforcement and improvements, there was a brief pause here this quarter or this half year compared to the previous half year. But the trend is still a growth, a slight growth this year. So that when we look at the investments that we're making and all the backlogs that we already have contracted that are slightly higher than 15 billion BRLs, which should add an RAP of 2 billion here, the generation backlog that was the LRCAP auction that we won with 250 megawatts with investments of close to 1 billion. On slide 8, in portfolio management, as I had mentioned, we uncrossed a series of minority stakes including ISA Energia where we received close to a billion in proceeds, and the payment for the consolidation of the Tres Irmãos HVP of 256 million BRLs. On slide 9, in allocable capital, again, every quarter we Analyze how much we have of allocated funding or to be allocated in this quarter. We reached the number that we would have 3.7 billion. Considering the 4 billion that we had deployed in the first quarter, for this half year, we'll have 7.7 billion of shareholder returns to be executed in the coming months. As for the redemption, going back now, we declared a redemption of 2 billion with a closing price of 53.71 DRLs per share. Our shareholders will have until August 14th to opt in for the redemption or to convert into common shares. And if the choice is for conversion, they would receive the shares on August 18, and if they're redeeming, on August 24. Now, getting into the energy trading session, slide 11. This is just a slide to understand how much we had available for trading on ICR. It doesn't mean that we didn't sell, it was available. Marcos Jose Lopes, Rodrigo Lima Nascimento, Elio Gil de Meirelles Wolff, Antonio Varejao de Godoy On slide 12, where we show the evolution of contribution margin from generation, as I said, it has improved compared to the previous year. Now looking at the unit margin, it would have gone from 80 to 100. Water on Quarter, that's a lot due to the mix, the mix of prices and sub-markets, was more favorable this quarter than in the same quarter of last year. On the right, we show you a little bit of seasonality looking at MRE overall and how our available capacity would be For our energy in each one of the quarters, considering that same seasonality of MRE and the projections. On slide 13, now a little bit about the hydrological scenario for the quarter. Obviously, the second quarter is where we start the dry season. Although El Nino did bring already higher rain levels in the south, but since the main reservoirs are in the southeast and northeast, there has been a short-term impact, but our view to the medium and long-term, it doesn't change. Now for prices, as I talked about before, this quarter, the prices in the northeast The prices in the Southeast compared to the previous year were better. That was the biggest contributor to the margin from generation this quarter compared to the same quarter in the previous year. Now talking about ESG on slide number 15. The main agendas first was the completion of the migration to Novo Mercado, the highest corporate governance segment of B3, where each shareholder has equal and full voting rights as well as political and economic rights. We were awarded the Pro-Ethics Seal for 2025-2026, a very important seal illustrating our commitment to ethics and transparency and strengthening corruption prevention and governance and compliance practices of the company. And in the environmental side, it's important to mention 30 projects that are about 78 million BRLs in investment to recover the environment and the The Parnaíba River Basin, one of the main basins we have in Brazil. Slide 16 is at the top of all the headlines, talking about the Super El Nino. And for us, this is part of our journey. So what's this journey that we started in 2023? It's a journey for Adaptation and Resilience to Climate Risk. So, in 2023, we started a deep dive into the climate risk and assessment for generation assets. In 2024, he has done this diagnosis and assessment. We defined a series of adaptation plans for our assets running Risk Assessment for Transmission Assets In 2025, but also starting in 2024, we started to implement these plans. In 2026, we already have 60% of those plans implemented, expected to be concluded by 2028. It could be slightly before that. But what's most important is that this is an ongoing analysis of climate variables and all future trends looking at a 50, 70-year horizon on how we'll be prepared for any changes. And what came from this journey? First, once again, to talk about our Climate Event Monitoring and Intelligence Center Marcos Jose Lopes, Rodrigo Lima Nascimento, Elio Gil de Meirelles Wolff, Antonio Varejao de Godoy Marcos Jose Lopes, Rodrigo Lima Nascimento, Elio Gil de Meirelles Wolff, Antonio Varejao de Godoy, Eduardo Haiama, Marcos Jose Lopes, Juliano de Carvalho Freitas Filho and for any assets that we may be looking at, for example, for M&A operations. And I think this concludes our presentation. We can move on to the Q&A session.