Companhia Paranaense de Energia (CPLE6) Corporate presentation summary

Strategic overview and business model

• Operates as an integrated electric utility with hydro, wind, transmission, distribution, and trading segments, serving 5.3 million consumers and managing 6,226 MW of installed capacity, all from renewable sources.

• Distribution concession runs through 2045 in Paraná, a state with above-average GDP and energy consumption growth outpacing the national average.

• Transmission platform covers 9,700 km across 8 states, with 96% of RAP renewed for 15 years and an average concession term of 18 years.

• Trading arm is among Brazil's top 10, with a diversified portfolio and low delinquency, selling 13,268 GWh in 1H26.

• 100% renewable generation portfolio, with 64% of concessions renewed for over 30 years and a focus on hydro and wind assets.

Financial performance and capital structure

• Recurring Ebitda reached R$ 5.5 billion in 2025, with a 21.6% margin and recurring net income of R$ 2.1 billion (8.8% margin).

• Net debt/EBITDA at 2.9x, within the optimal range of 2.6x–3.2x, and leverage supported by a robust capital structure.

• Dividend policy mandates a minimum payout of 75% of net income, paid at least twice a year.

• Capex for 2026–2030 totals R$ 18 billion, with R$ 13.5 billion for distribution, R$ 1.9 billion for generation, and R$ 1.8 billion for transmission.

• Comfortable leverage and diversified debt composition, with nominal cost of debt at 12.92% p.a. as of June 2026.

Operational efficiency and investment cycle

• PMSO optimization and cost discipline led to a 14.7% reduction in staff and management costs from 2024 to 2025.

• Distribution Ebitda grew 34.5% in 2Q26, driven by market growth and cost management.

• Generation Ebitda up 15% in 2025, supported by higher sales prices and favorable hydrological conditions.

• Ongoing investments in modernization, with R$ 1.3 billion for hydro and R$ 419 million for wind from 2026–2030.

• Distribution network investments focus on grid expansion, reliability, and efficiency, with 50 new substations planned.