Companhia Paranaense de Energia Q2 FY2025 earnings call

• Divestments: Closed small hydro asset sales, including Figueira plant; completed asset swap with Eletrobras consolidating HPP Maua and Mata de Santa Genebra.
• Awards: Received best ESG Award for Electrical sector from Exame Magazine and ranked first in Aneel's Ombudsman Award for third consecutive year.
• Migration to Novo Mercado: Plan to unify share classes, migrate preferred shares to common shares at 1:1 ratio with dividend premium of BRL 0.7749, awaiting approval from preferred shareholders.
• Investments: CapEx totaled BRL 975 million in Q2 and BRL 1.6 billion in H1, focusing on expanding remuneration base, service quality, efficiency, and infrastructure modernization.
• Leverage: Leverage closed at 2.9x net debt over recurring EBITDA, excluding Baixo Iguacu acquisition, aligned with dividend policy.

Copel GeT had recurring EBITDA of BRL 761.4 million, up 12.6% compared to the second quarter of 2024, representing 58.4% of the total EBITDA. Copel distribution posted recurring EBITDA of BRL 569.3 million, up 0.6% year-on-year, contributing 42.6% of the total EBITDA. Consolidated EBITDA was BRL 1.3 billion, a 4.2% growth from the same quarter last year.

• CapEx projection: Over BRL 3 billion by end of 2025.
• Migration to Novo Mercado: Aim to conclude by end of 2025, pending CVM approval.
• Dividend policy: Maintain at least 2 annual dividend payments, with announcements in Q4.

• Macroeconomic factors could materially affect forward-looking statements.
• Regulatory uncertainties in tariff policies, political environment, and legislative approvals (e.g., MP 1300/1304) could impact results.
• CVM approval delay for migration to Novo Mercado could affect timeline.

Q: Give color on trading strategy and migration to Novo Mercado timeline.

A: Trading strategy focused on longer-term sales; migration to Novo Mercado feasible by end of 2025 pending CVM approval.

Q: Strategic view on coming cycle, M&A.

A: Focus on current value extraction, digital transformation, no immediate M&A plans.

Q: Cost measures, tariff impact, ADA.

A: Cost measures through small consistent moves, tariff concerns, ADA below tariff coverage.

Q: Migration dividend dynamics, provisionary measures.

A: Dividend policy maintained, monitoring political environment for regulatory approvals.

Q: Update on participation in energy generator bid.

A: Awaiting ordinance publication for capacity bid, expecting first quarter 2026.