AXIA

• Financial & Capital Allocation Updates: Total year-to-date shareholder return programs reached BRL 7.7 billion in the first half of 2026, including BRL 4 billion approved in Q1 and an additional BRL 3.7 billion approved this quarter. A new BRL 2 billion PNC share redemption program was announced, with a reduced processing period from 16 to 13 business days, following a successful BRL 30 million test redemption earlier. Allocable capital is calculated using a conservative 5-year forward pricing window to maintain the company's robust financial position. Proceeds from divestments of multiple minority stakes totaled ~BRL 1.15 billion, including BRL 1 billion from minority stake sales and BRL 150 million from four small transmission line stakes, which funded the BRL 256 million acquisition of full control of HPP Três Irmãos.

• Operational Highlights: The company accelerated investment spending, particularly in transmission projects and the revitalization of existing generation assets. Generation trading margins improved due to favorable price differentials across sub-markets in Q2 2026, despite the start of the dry season and El Niño-related rainfall imbalances. 11 GW of energy was available for trading on the ACL market, with breakdowns provided for all sub-markets to support investor analysis.

• Governance & ESG Progress: AXIA completed migration to B3's Novo Mercado, the exchange's highest corporate governance segment, which grants equal full voting rights to all shareholders. The company received the 2025-2026 Pro-Ethics seal in recognition of its anti-corruption, transparency, and compliance practices. 30 environmental restoration projects totaling BRL 78 million in investment are underway for the Paraíba River basin. The company is 60% through implementing its 5-year climate adaptation and resilience plan for generation and transmission assets, on track to be fully completed by 2028. The plan includes an AI-powered climate event monitoring center that covers 100% of AXIA's assets, and updated climate risk assessment methodologies that are already applied to all new transmission auction and M&A investments.

• AXIA Energia expects total annual investments in asset reinforcement and improvement to reach BRL 5 billion to BRL 5.5 billion in 2026, up from BRL 4.5 billion in 2025 and BRL 3.3 billion in 2024, with plans to continue growing this investment category to improve asset resilience.
• The company expects Q3 2026 to have more available energy than Q3 2025, but lower average energy prices than the year-ago period, in line with typical seasonality.
• 60% of the company's climate adaptation plans are implemented as of Q2 2026, with full completion expected by 2028, potentially slightly earlier.
• If the current BRL 2 billion PNC share redemption test is successful, it will be the final test, and regular, routine share redemptions will be implemented going forward, similar to standard buyback programs.

Overall, AXIA Energia reported Q2 2026 EBITDA of BRL 6.7 billion, a 21.5% year-over-year increase driven primarily by the generation segment, with stable performance from transmission and well-controlled costs. Total quarterly investments increased 50% year-over-year to BRL 3 billion. The generation segment led earnings growth, with a combined unit generation margin for ACL and MCP of BRL 96 per unit in Q2 2026, up from BRL 73 in the year-ago quarter. Unit generation contribution margin improved to BRL 100 from BRL 80 quarter-over-quarter, due to a more favorable mix of prices and sub-markets. The transmission segment was stable, with AXIA winning the latest transmission auction with a projected NAL CapEx of BRL 668 million and annual RAP of BRL 50 million. The company holds a total contracted transmission investment backlog of just over BRL 15 billion with annual RAP of BRL 2 billion, and a generation backlog for a 250 MW project won in the LRCAP auction with total investments of ~BRL 1 billion. The Itaipu revitalization investment reached ~BRL 2 billion in the quarter, up from BRL 534 million in the year-ago quarter.

• El Niño is expected to persist through at least Q1 2027, bringing higher rainfall in the South of Brazil and reduced rainfall in the North and Northeast, with uncertain rainfall outcomes for the Southeast (where most of AXIA's reservoirs are located), which could increase regional price volatility. Current leverage is slightly higher, and financial results have worsened due to elevated domestic interest rates. Regulatory returns on concession investments must be adjusted periodically by ANEEL during tariff reviews to align with current macroeconomic conditions and cost of capital.

Q: Fillipe Andrade (Itaú BBA) asked two questions: whether AXIA expects to hit BRL 5 billion in annual reinforcement and improvement investments in 2026, and what the short-term energy and price outlook is through Q1 2027 if the strong El Niño scenario continues, including how this relates to Q2 purchase volumes. / A: Élio Wolff confirmed that the company targets BRL 5 billion to BRL 5.5 billion in annual 2026 investments in this category, and will continue growing these investments to improve asset resilience and deliver shareholder returns. Rodrigo Limp noted that El Niño has already brought higher rainfall to the South, pressuring short-term prices lower through Q3 2026, with a price recovery expected starting in October. Persistent El Niño would reduce rainfall in the North and Northeast, increasing price volatility, and AXIA is strategically expanding sales in these sub-markets where it has excess available energy.

Q: Bruno Amorim (Goldman Sachs) asked whether increased investment in reinforcements and improvements is driven primarily by attractive risk-adjusted returns, or by operational risk mitigation needs, especially given current high cost of capital. / A: Ivan Monteiro noted that operational resilience is treated as a top priority by management, while these investments also deliver adequate returns. Eduardo Haiama added that these are mandatory required investments for all concession holders to maintain long-term asset resilience. ANEEL regularly adjusts returns during 5-year tariff reviews to align with current market conditions, and management has confidence in Brazil's regulatory framework to support adequate long-term returns for these investments.

Q: Arthur Pereira (JPMorgan) asked why the board approved a similar BRL 3.7 billion allocable capital amount this quarter as in Q1 despite lower short-term energy prices, and what the company is testing with the new larger BRL 2 billion PNC share redemption. / A: Ivan Monteiro explained that the company has completed a multi-year de-risking process following privatization, including reducing contingencies and improving operational resilience, leading to more robust, reliable capital allocation models. Eduardo Haiama added that the methodology uses a conservative 5-year forward pricing window rather than focusing on near-term price movements, and the BRL 7.7 billion full-year allocation is supported by progress on planned energy sales. The BRL 2 billion redemption is a larger-scale test to process opt-in/opt-out requests for 50,000 to 60,000 individual shareholders (up from 4,000 in the first small test), and if successful, it will be the final test before regular redemptions become standard practice.

Q: Daniel Travitsky (Banco Safra) asked for an update on Q3 energy allocation and sales, and how share redemptions complement the company's dividend policy. / A: Rodrigo Limp noted that Q3 typically has lower available energy due to seasonality, but 2026 Q3 will have more available energy than 2025 Q3, though prices are expected to be lower year-over-year, with a controlled overall portfolio position. Ítalo Freitas added that sales accelerated in the Northeast sub-market this quarter, focused on end-use C&I, residential, and commercial clients, which is the company's core sales priority. Eduardo Haiama confirmed that the company's current strategy prioritizes share redemptions over extra dividends above the mandatory 25% legal minimum, similar to standard buyback strategy, unless share prices become extremely overvalued, at which point the company would shift to higher dividend payments.