Companhia Paranaense de Energia (COPEL)

Good morning, ladies and gentlemen. Welcome to Companhia Paranaense de Energia, Coppel's video conference to discuss the earnings for the second quarter of 2025. This video conference is being recorded and will be available on the company's website, ri.coppel.com. The presentation is also available for download. Please be advised that our participants will only be watching the video conference during the presentation, and then we will begin the Q&A session when further instructions will be provided. Before proceeding, I would like to note that the forward-looking statements are based on the beliefs and assumptions of Coppel's management and the information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should consider that events related to the macroeconomic environment, industry, and other factors could lead results to differ materially from those expressed in such forward-looking statements. This video conference will be presented by Mr. Daniel Claviero, CEO of Coppel, Mr. Felipe Guterres, CFO of Coppel, as well as directors of the subsidiaries who will be available for the Q&A session. I would now like to turn the floor to Coppel's CEO, who will start the presentation. Please, Daniel, you may begin.

Hello.

Good morning. I thank you all for attending our video conference. We're presenting yet another quarter with sound business results. A beta of 1.3 billion, a growth of 4.2% compared to the same quarter of last year, and recurring net income above 450 million BRLs. Our capex in the period was of approximately 1 billion BRLs, 975 million to be precise, in line with our projection of more than 3 billion by the end of 2025. we are monitoring every week the execution of the investment plan, especially in the distribution company, because this is the last year of the tariff cycle. Our leverage closed at 3.1 times, basically due to the temporary acquisition of Baixo Iguaçu, and we'll complete the second stage of the operation, which is the sale of the entire asset, now in the third quarter. if we consider this process our leverage is at 2.9 times net debt over ebitda in line with our dividend policy and our projections always noting that we have the leverage contracted for the coming years, especially the tariff review, reduction of costs that Coppel has been running on its plan and its market commitment, as well as the improvements that we've been perceiving in the price of energy sold by our company. So, speaking of divestment, in July, we also had the conclusion of the small hydro asset sales that were part of Coppel's divestment plan, and we closed yet another tranche of this operation with the final element, which is the Figueira plant that will likely conclude its closing now in the third quarter. Combined to that, in the second quarter, we also had the closing of the asset swap operations with Eletrobras, consolidating the results of HPP Mauá and the transmitting company Mata de Santa Genebra, two important steps in our strategy to optimize our portfolio. In this period, we also had important recognition that reinforced our commitment to excellence and sustainability. we received the best ESG award for the electrical sector, granted by Izami Magazine, and for the third consecutive year, we ranked first in ANEEL's Ombudsman Award. I would like to congratulate everyone at the distribution company for this award, and thank you all for your engagement and commitment, all of our collaborators, Ed Coppell, receiving these awards and recognitions. So without their efforts, dedication and professionalism of all Coppelians, these accomplishments would simply not be possible. Thank you all very much. And now we will enter the first or the top subject of this moment, which is the migration of Coppel to Novo Mercado. I'd like to remind you all that in addition of being at the highest level of governance of B3, Our main objective with this migration is to unify the classes of shares generating increasing liquidity for the company and to all our shareholders. The terms approved by the Board of Directors consider in the first phase the unification of the two classes of preferred shares without prejudice to any right of the classes involved. The following step in the proposal will be the migration without dilution to any shareholder in a ratio of 1 to 1 and to equalize dividends with a payment of a premium to preferred shares of 0.7749 cent of real. The state will depend on the approval of the majority of preferred shareholders in a special meeting that will be booked by the company at the right time. So, in addition to guaranteeing equity between the classes of shares, the proposal includes the migration of all preferred shares to common shares, which will grant the same right to vote and alignment between shareholders. We believe that this will unlock a lot of value for the company through higher liquidity of shares, as I mentioned, and it will be an important tool to attract new investors to Coppel, especially foreign investors. However, on August 1st, we were surprised by the deferral from CVM of a request to interrupt the general meeting for up to two weeks, 15 days, that was requested by one single Class A preferred shareholder. I note that this class of shares represents approximately only 3 million shares in a universe of close to 3 billion shares. so a universe of 3 billion shares, so that's slightly over 0.1% of the company's total capital. And even with this representation, our proposal brings benefits to Class A preferred shares, in particular, a significant increase in liquidity.