Companhia Paranaense de Energia - COPEL American Depositary Shares (each representing four (4) Common Shares) 2026 Q2 Earnings Call

Good morning, ladies and gentlemen. Thank you all for joining our conference call. We have delivered another quarter of strong operating results, and this reflects our discipline in executing the company's strategic plan. The main highlight of the period is, without a doubt, the completion of the tariff review of Copel Distribuição. This effort was and recognized the efficiency of Copel Distribuição's investments during this BRL 1 billion, a significant increase, in fact, more than double the 2021 base.

This result underscores one of the key characteristics of this management team, i.e., excellence in delivering on the commitments made to the market. In this cycle that is just starting, we will maintain the same results. Another very positive factor was energy sales made during the period, which allowed us to capture approximately BRL 75 million in market opportunities, BRL 52 million from hydro modulation and BRL 23 million from sub-markets. This reinforces the premium position of our southern-based hydroelectric assets. This performance, combined with a 7.2% growth in Copel DisCo billed market, directly contributed to boosting our second quarter results. As a result of this efficient operational performance, EBITDA reached BRL 1.6 billion, close to 21% increase compared to the same period last year. Recovering net income reached BRL 645 million, representing a 42.6% increase.

This performance reflects the robustness of our business model, the strength of being an integrated company, as well as our discipline in cost management and capital allocation. This, to us, is a reference, a mission, a purpose, something that is very strong about this management team: discipline in capital allocation and value creation for our shareholders and all our stakeholders. In terms of CapEx, we invested BRL 957 million, almost BRL 1 billion in the quarter, of which BRL 318 million allocated to the start of construction at Foz do Areia and Segredo. We maintained a sound capital structure, ending the period with a leverage ratio of 2.9 times net debt over EBITDA, perfectly aligned with our new optimal capital structure parameters. Finally, regarding shareholder remuneration, we declared BRL 706 million in interest on equity to be paid in September 2026.

In addition to the BRL 1.35 billion in dividends paid in June, corresponding to the statement already disclosed at the end of 2025. I'd like to speak a little about El Niño and its impact on this sector. We would like to share how we are preparing for this climate phenomenon. First and foremost, I would like to note that NOAA, this renowned institute, has confirmed an 81% probability of strong or very strong intensity of El Niño from August through the first quarter of 2027. Our approach focuses on the preventive management of the asymmetric regional impacts of this climate phenomenon. In the south, where we concentrate our main operations, high rainfall is forecast, especially between August and November, with heavy rains in the Southern and Paranapanema basins. In the Southeast and Midwest, high temperatures are expected, particularly in Q4, driving up the system's load.

These dynamics dictate our commercial and operational strategy. As indicated by the PLD curve, higher rainfall tends to cause a cyclical decline in short-term prices. However, in our view, this fluctuation is temporary and will have no impact on our balance sheet without changing the expectation of higher prices in the long run. This change will not impact our short-term contracting because our balance sheet is protected and locked at attractive prices. On the other hand, the increase in load caused by heat waves will trigger spikes in hourly prices in the short-term market due to the sudden demand for power. With our reservoirs full in the South and high operational flexibility, we will be ready to capture these short-term price spikes, converting volatility into operational margin for Copel.

In summary, Copel's portfolio is protected against structural price declines and is fully positioned to extract value from our hydroelectric capacity during times of peaks in the system. Not to mention our assumption, we're never short. We always have a natural hedge for GSF. So that we have the possibility of supplementing the short-term market. To close, talking about Copel Distribuição, our top priority is to ensure the safety of the population and the continuity of power supply. To respond quickly and in a coordinated manner to extreme weather events, we maintain a permanent contingency plan structured around four pillars. Operational reinforcement. We hired more than 100 new crews. We have practically 900 crews, both in-house and third party, to provide a full service in our concession area. Vegetation management. We brought forward our annual planning and carried out more than 600 joint efforts with local governments and the agricultural sector to avoid contact from vegetation with the grid.

Focusing on high-risk areas. Infrastructure. We bolstered our inventory to quickly restore the grid. We reinforced our inventories to repair the network with agility. At the operation center, we expanded our team of new operators to ensure uninterrupted monitoring and a 24/7 operation. Our priority during these extreme weather events is to quickly replenish the grid, our priority is to reestablish power to our customers. To conclude this topic, I would like to announce the arrival of a new executive on the general management of Copel Dist, Mr. Denis Mollica, who's sitting next to me.

With extensive experience in the electric power sector, he joins us to further improve the service we provide to our customers. So he was already a part of our staff, and he's taking over the position previously held by Marco Antônio Villela, whom we thank for his important contributions and the results he achieved for the company. We also thank Executive Karine Torres for all her dedication and hard work in the Operations and Maintenance Division. As we move towards my final part, you will recall that we've always stated that our transformation process occurs in waves. The third wave will be marked by asset expansion with strict discipline in capital allocation. The LRCAP Auction results are further proof of this management's team excellence in delivering results.

We will expand our two largest power plants with a CapEx of around BRL 5 billion and a highly attractive return. In the second quarter, as you all know, ANEEL approved the results of the bidding process, BRL 318 million to start the construction work. The construction work is starting so that we can have mobilization and follow the schedule. Follow Copel's tradition, which is always to deliver a little more than what we promised. We have adjusted our leverage benchmark from 2.8 to 2.9 times net debt over EBITDA ratio and extended the convergence period to the midpoint of the range To up to 48 months, and Felipe will address more about this. We believe this timeframe is better suited to the characteristics of the infrastructure sector, particularly in the energy sector, something very relevant. It is important to note that our dividend policy remains strictly unchanged.

We have maintained the guidelines of a minimum payout ratio of 75% and at least two annual payments, ensuring predictability and consistency for our shareholders. In other words, we will make at least one more dividend declaration by the end of 2026. Our current capital structure balances three pillars of our strategic plan. The flawless execution of our investment plan, combined with solid financial discipline and a commitment to generous returns for our investors. Before turning the floor over to Felipe Gutterres, I'd like to reiterate an important invitation. Our Copel Day confirmed for November 19th, live from the NYSE in New York. We look forward to seeing all of you there, whether in person, if you can be there, or via the online broadcast. It will be an excellent opportunity for us to discuss our long-term strategy, growth opportunities, capital allocation, and our value creation agenda.

Now, I will turn it over to Felipe to present the financials for the quarter. Thank you. Thank you, Danielle.

Good morning, everyone. I'd like to begin by reiterating the point Danielle mentioned regarding the update to our optimal capital structure. The review of these parameters takes place annually, as we've widely discussed when we disclosed the optimal structure. Was also driven by the success of the LRCAP 2026. The financial modeling of a robust investment plan, the cash flow from the LRCAP, which is expected to begin as planned at the end of 2030, combined with a more challenging economic environment, required us to test our capital structure under multiple scenarios and stress tests. The new leverage target of 2.9 times reflects this rigorous planning, ensuring the flexibility needed to capture opportunities while maintaining financial discipline and a focus on shareholder returns.