Auren Energia (AURE3) investor relations material

Market position and portfolio

• 3rd largest power generator in Brazil with 8.7 GW installed capacity, 100% renewable assets, and a leading energy trading platform serving over 4,000 clients across all market segments.

• Diversified portfolio with minimal submarket risk and strong modulation benefits, ensuring operational resilience and value creation.

• Highly contracted portfolio through 2028, with increasing exposure to rising energy prices from 2029 onward.

Financial performance and capital allocation

• 2025 net revenue projected at R$13.2 billion and adjusted EBITDA at R$4.0 billion.

• Strong growth driven by disciplined capital allocation, successful M&A (notably CESP and AES Brasil), and efficient integration, resulting in synergy gains and improved operational metrics.

• Over BRL 5 billion in gains from being highly contracted over the past six years compared to spot market exposure.

• Net debt reduction and deleveraging expected from 2027, targeting a leverage ratio of 3.0-3.5x by 2028.

Sector trends and regulatory environment

• Brazil’s electricity demand is growing, driven by organic growth, data centers, and gradual fleet electrification, with green hydrogen projects having marginal impact by 2030.

• Structural oversupply is expected to fall below 20% from 2029, with intermittent renewables surpassing controllable capacity, increasing price volatility and curtailment risks.

• Marginal cost of expansion has risen due to the end of subsidies, higher Capex, and increased curtailment, pushing medium/long-term prices closer to expansion costs.

• Regulatory changes are underway to address curtailment compensation and distributed generation impacts, with new frameworks and public consultations in progress.