Everyone, we have one more day of results. We're going to talk about the fourth quarter and the year of 2025.

I'm Giovanna [Roffi?] , and today I'm going to conduct the dynamic.

Today we have Gustavo Estrella, our CEO, and Mrs. Kedi, our CFO, and other executives of the company.

During the event, you will be able to use the button "Interpretation" for the English channels or Portuguese channels, depending on what you need. I'd also like to inform everyone that at the end of the presentation, we will start questions and answers.

All the questions will be made live, and to ask them, all you have to do is click on the button "Raise Hand," which you will find at the bottom of the platform. I would like to remind you that we are recording this event.

I'm now going to give the floor to Gustavo Estrella to start the presentation of results.

Thank you, Giovanna. Good morning to everyone.

Thank you for being present in our results call, in the call of results. I'm already going to go straight to page 3.

Here we have the highlights of the quarter. We have the EBITDA with a growth of 4%, closing in R$3,408 million; in the year, an EBITDA of R$13,452 million with a growth of 2.4%.

The profit is R$1,500 million, the net income, a small drop of 0.6%, and we close the net income in R$5,743 million with a small decrease of 0.3%. Our net debt, we're going to go into detail, but we close with R$30.5 billion, with a leverage of 2.3 times the net debt over the EBITDA in the criteria of the financial covenants.

Our CapEx, it's important to notice we close with R$1.7 billion in the quarter, but the main number is the number of the year, we close with R$6.1 billion, a growth of 5.5% in relation to 2024. It's the all-time record in the CPFL group.

We also have a PDD of 0.87%. We're going to see a certain stability and also when we compare '25 to '24, a decrease of 26.2% in ADA.

Dividends, we recommend for the assembly dividends of R$4.3 billion, which is R$3.73 per share. It's also the highest dividend of the company ever since our IPO in 2019, which is a payout of 90%.

Another highlight in the financial arm, all the part of installments of bank accounts and also financial services, for the first time, we are in a non-regulated and an EBITDA over R$100 million in 2025 and good perspectives of continuing growing in the next year. We're also announcing our CapEx plan 2026-2030, the largest plan in the annual CapEx with R$30.1 billion, R$25.3 billion 100% allocated in the distribution business.

The CDP 2025, CPFL was recognized as a double-A score. Few companies, not only in Brazil, but in the world, are classified as double-A, here with topics linked to climate change and water security in a universe of 22,000 companies that were evaluated, only six Brazilian companies were classified as double-A, and CPFL is one of them.

Also, the Platts Global Energy Awards, important recognition here for the Global Energy, the S&P, and also for actions during the disaster in the Rio Grande do Sul calamity. Let's move on to slide 4.

Here I'm going to start with the highlights of the energy sales, with a drop of 2.2%. It's very concentrated in residential and commercial classes, very much due to temperature affecting 5.1%, 6.4%, respectively, and also the irrelevant impact in the distribution with the reflex that you can see on the screen, 3.4%.

We continue a per capita growth mitigating these impacts in the final sales of the two classes, but I think the temperature was a relevant factor in the fourth quarter. In the industrial class, we see a stability of 0.3%, a small drop in the industrial class.

Here we have the segment of food, which is the main segment in our class, with 5.2% growth, compensating the negative effects that are coming from other classes: vehicles and metallurgy with 2.9% minus. Now let's move on to the next slide.

Now let's talk about 2025. Here we have a small drop, stability of the market when we compare year-by-year, 0.7%.

Here the effects similar. We can see that in the year, we have a colder year than in 2024, the temperature effect very, very relevant in both classes.

We continue in the distributed energy. Here the highlight is the industrial class with a performance a bit better compared to the fourth quarter.

Here when we look at the segment, this is the main highlight with a growth of 3.7%. In slide 6, we show you the classes growth, removing these effects that are non-recurrent, and we can see exactly how the growth is when we have our consumption classes.

You see the first one continues a growth over 7%, very much due to the per capita growth that I mentioned, 3 years with a growth close to 7%, and it's a higher demand of energy in the residential area. The same thing in the commercial area, a growth of 7.7%.

Industry with a more modest growth, a drop in relation to 2024, and normalized of 1.5%. When we compare the '24 to '25, we have growth in the normalized area, which is much higher than the GDP growth.

Now let's go to the next slide. We're on page 7 now.

Here you can see delinquency. As I said, it is very stable, more or less 0.87%, 0.9% in the last five quarters.

I think this is good news. When we look at the challenge that we've had for the reduction of our PDD during the year of '24 and then we're able to stabilize in these lower of 0.87%, this brings us relevant results, the effect of PDD less than R$102 million.

The effect is very important in the ADA, which shows a stability in these levels close to 0.8%, 0.9%. We also have the collection actions.

We continue in elevated levels. There's a drop in the fourth quarter, but normally these power cuts control our delinquency not only in 2025, but also in a perspective for 2026.

Now let's talk about distribution losses. Here this is a more of a challenge.

We have a stability of losses when we compare to 2024, but a loss above the regulatory limits, and we have found some challenges to control these losses. We can see that the only concessionaire that has losses lower is CPFL Santa Cruz.

The challenge continues to RGE, Piratininga, and also CPFL Paulista. When we look at the indicators, quality indicators on page 9, I think here we have a good news when we look at our DEC, which is at low levels, especially in São Paulo, but also in Rio Grande do Sul, with all the numbers lower than the regulatory numbers.

Once more, the data publicized by ANEEL in 2025, CPFL with the best, with Paulista, Piratininga, and Santa Cruz. We also see when we do the analysis of the set in each concession area, in all of them, this is above the regulatory targets.

In the hydro performance here on page 10, we can see a PLD closing at R$265. This is a scenario that we have to 2026.

The hydrology is lower than the average, and with the methodology of price that was implemented last year, higher volatility and higher price, and we should continue with short, high-term prices during the whole year of 2025. GSF closing 68% in the fourth quarter, a little bit lower than the GSF or a bit above the number in 2024.

Let's move on to wind farms performance. The big highlight here is the impact of the curtailment that we can see that in the year of 2025 it reached 30.80%, very much higher than the 19.7% of 2024.

We can see the growth, from 19 to 30. We still have not taken into account the impacts of the measure that was approved at the end of last year.

We continue waiting for the commitment of the Ministry of Energy, and we hope to be able to do this in the first quarter of 2026. Now on slide 12, I'm going to give the floor to Kedi, and she's going to give us the results of the company.

]: We are waiting for Mrs. Kedi to come online.

She was on mute.

She will be

joining shortly. Hello?

Is that okay now? Okay.

Thank you, Gustavo, and good morning, everyone. Now let's talk about the financial performance of the last quarter.

The total EBITDA of last quarter was R$3.4 billion, which is 4% higher than the same quarter of last year. Still, distribution is the biggest biggest section which contribute to this EBITDA and also with the highest increase comparing to last quarter.

In the next few pages, we're going to talk about the performance in each segment. On page 13 is the performance of distribution section.

The EBITDA in this section was R$2.3 billion, which is 4% higher comparing to last same quarter of last year. The biggest positive contribution is the positive market and tariff adjustment in this part.

The performance was R$436 million higher comparing to last year, majorly because of IGP-M, higher IGP-M adjustment. Also, we have successfully win the arbitration of RGE for RGE.

This part contribute to a positive R$157 million, and we have already received the full cash settlement in last quarter. Some of the the negative parts includes lower concession financial asset, which was because IPCA was lower comparing to last year.

If you go to next page, we talk about generation. Total EBITDA for generation is R$1 billion, which is which is R$94 million lower comparing to last quarter same quarter of last year.

There are some one-off effects contributing to the negative movement. The major one is in in the same quarter last year, we hit had an asset fair value adjustment, which is non-cash, and this part accounts for a negative contribution of R$170 million.

In wind generation, the performance was R$56 million lower comparing to fourth quarter of last year, majorly because of the impact of curtailment was higher. It contributes to a negative of R$122 million.

While the wind performance actually is better, offset R$66 million additional revenue. Also, because comparing to last year, there was some we had some contract termination, such as Ibaza and Biomass asset.

For positive factors, the inflation adjustment for our contract contribute to R$77 million higher revenue, and also there are some there are some one-off effects, such as the Padla and Odin and Certe, which contribute to additional R$68 million in term of profit. Next page, we talk about transmission.

The IFRS performance was R$87 million, and this part we had a lower performance comparing to same quarter last year, majorly because of non-cash events. The biggest impact is we had a construction margin adjustment, which had an effect of R$162 million.

Also, we had some legal provision for our transmission. Talking about regulation, it was a relatively stable performance.

Our revenue from RAP actually was higher comparing to fourth quarter of last year, which is R$38 million higher. Also, but we have some provisions, majorly expenditure because of provisions, which caused R$66 million reduction in this section.

Next page is commercial service and other section. The EBITDA in this section was R$45 million lower comparing to fourth quarter of last year.

The biggest effect is, as we have mentioned also in generation section, was this one-off non-cash effect coming from Padla and Odin and Certe, with R$53 million. Also because of lower margin in commercial of R$20 million.

We had a better performance from services of Serviços and also our section in total and the last, which contribute to a positive R$32 million comparing to the performance of last year. Talking about net income, we have reached R$1.5 billion in the fourth quarter, which is quite consistent to the performance of last year.

Besides EBITDA, the biggest change in this section is financial expenses. It was R$222 million higher comparing to same quarter of last year.

The biggest reason is because the balance of debt is higher and also higher interest rate. We had a lower mark-to-market effect comparing to last year, but actually the net mark-to-market was positive both in last year and this year, but this year was a smaller amount, the difference is a negative R$121 million.

Also, in positive aspect, the adjustment to regulatory asset and liability was higher than last quarter, which contribute to R$89 million additional in term of profit. If we go to next page, we talk about the performance in the whole year.

The EBITDA was R$13.4 billion, which is 2.4% higher, R$380 million higher comparing to last year. Still distribution contribute to the to the biggest amount of increase, which is 13.8% higher.

Majorly because of higher IGP-M inflation we had in Parcel B and also a higher adjustment in concession financial asset, and also the good result of RGE arbitration. As mentioned previously by Gustavo, we had a better performance, a significant improvement in ADA.

In generation section, the performance was R$286 million lower than last year. The biggest impact is because of the curtailment.

In this year, the effect was a negative R$558 million, while last year it was R$272 million. Transmission segment is a relatively stable segment.

The major change is because of the non-cash margin construction margin review as I mentioned, and also in this year we had RBSE adjustment. In commercial and other section, the major change is because of a lower margin in trading.

Next page, when we look at the net income of last year, net income was R$5.7 billion, which is consistent, quite consistent with the result of last year. The financial result, we have a higher expenses in debt, which is R$708 million higher because of higher balance of debt and higher interest rate.

The mark-to-market effect contributed a positive profit of R$281 million, while we also have a higher adjustment from regulation asset and liability adjustment of R$248 million. Next page, we talk about our covenant, our leverage, and dividends.

As you can see, by the end of the year, because of the high CapEx investment and a stable dividend payment, our debt balance reached to R$30.5 billion. Our leverage ratio, net debt to EBITDA, reached to 2.3 times, but still this level is well below the the covenant requirement, which is 3.75 times.

We have been following our plan for a balanced growth and dividend payment. The company has decided to we propose a dividend payment of R$4.3 billion, which we believe is a historical high since our IPO.

This value will represent roughly 90% of the payout and equivalent to R$3.73 per share. It will be approved in the annual general meeting on April 29th.

Next page, we talk about the debt portfolio. As you can see, last year we performed quite successfully a huge amount of financing.

In the whole year, we have borrowed R$14.8 billion, and the average cost for our new debt equivalent to CDI minus 0.34%. The average tenor of our new debt is 5.07 years, and this will extend our the average tenor of our debt portfolio.

One of the financing activity I like to highlight which we performed in last quarter is we replace the the R$2.2 billion intercompany loan with a higher expenses at CDI plus 1.1% with a much cheaper intercompany loan at the cost of CDI minus 0.4%. We took R$4.4 billion intercompany loan at this very attractive price.

Next page, please. The CapEx investment, CapEx investment in last quarter was R$1.7 billion, which was 9% lower than last quarter.

When we look at the performance of whole year in 2025, the total CapEx was R$6 billion, which was 5.5% higher than last year and was also this was also a record high for the company. In different sections, in distribution, it still accounts for most of the CapEx investment, R$1.3 billion from this section, and for the whole year it was R$4.9 billion, 9.2% higher.

Most of the CapEx expenses went to expansion and modernization of the network. In generation, the CapEx was R$100 million, which was 25% lower comparing to fourth quarter of last year, and for the whole year, R$270 million was 34% lower than last year.

Most of the CapEx went to maintenance of our asset. In transmission, the CapEx for fourth quarter was R$247 million, while the total CapEx for the whole year was R$804 million, which is 6% higher.

Most of the CapEx went for authorization of of authorized project from ANEEL, which will give us a stable and favorable return. In other sections, the total CapEx for the last quarter was R$36 million, while for the whole year was R$74 million.

Next page, please. When we look at the CapEx plan for the next 5 years, the total CapEx plan was R$31 billion for next 5 years, which is the highest level I think in the history for CPFL.

Here I'd like to emphasize, you can see that we're trying to make arrangement, by the end of regulatory period, which was '26 and '27, we plan to have higher CapEx investment, so that the return will be will be higher. In in different sections, in transmission, the CapEx investment is going to be R$4.5 billion.

We have we're going to have a high CapEx investment because of also the Lot 3 transmission line construction. In services and other sections, the investment plan was R$395 million, while in generation, the plan was R$904 million.

Distribution section still accounts for the biggest portion of the CapEx investment. Total amount for the next 5 years is was is R$25 billion, and more than half of the amount will go to grid expansion and modernization.

That was the performance of financial. Now I give the floor back to Gustavo, please.

Just to finalize the last slide of our ESG plan, we are adjusting our plan to be able to focus more. We had four pillars, today we have three pillars, but the changes are not too big.

What we believe is stability and long-term vision, and obviously a link with the businesses of the company. This is adjustment to follow the shares and the initiatives that we've been carrying out in the last years with perspectives and goals defined up to 2030.

This is an adjustment that we believe is important to guarantee more focus in our ESG plan. ]:

Thank you, Gustavo and Mrs. Kedi, for the presentation.

Now we're going to open for questions and answers in the order in which they are made. I reinforce that the questions will be asked live, and to ask a question, you have to use the button "Raise Hand," which is on the tool in the lower part of the platform.

We have a first question comes from Guilherme Palhares from Santander Bank. Guilherme, we're opening here your audio for you to be able to ask the question live.

Hello, everyone, can you hear me? Yes.

I would like to have an update about the system. There was no agreement with the regulator, how do the perspectives work out from then on?

His sound cut a bit, wasn't able to understand his full question. Guilherme, in relation to self-dealing, ever since October last year, we have this perspective of non-advancement of the proposal that we carried out in relation to ANEEL.

Ever since, we've been following the legal execution. We don't have any news here.

This follows the normal negotiations of the legal execution. It's important to emphasize this is already a process that has been judged and we're in the execution process.

The expectation is that we have some advance of this process from April on, given how the legal system works, but there's nothing new in relation to what we said ever since last October, which was the non-agreement and the legal execution process that was that started from that day on.

Thank you. Thank you very much, Estrella.

]:

Now we have another question from Guilherme Bosso. Guilherme, we are opening your audio.

Please proceed with the question.

Good morning. Congratulations for the results.

I have two questions. I would like to understand better the dividend issue.

It's a payout of 90%, and if we do the average of the last 3 years, how much is the average? Do you see this as recurring and how this has to do with the leveraging of the next years?

Hi, Guilherme, thank you for your question. I think that what we always say about dividends, and I think what Kedi said, is always that search of the balance between dividends, growth, and leverage.

It's always this tripod that we look at when we take decisions of paying dividends. I would say to you that it depends on the moment, depends on the company, it depends on the generation of cash to define the decision.

We know that this is a topic which is very close to the heart of our shareholders, and the idea is always to balance this in the best way possible, always preserving a payout for higher limits. You said an average of 80%, this year 90%.

Next year, we're going to discuss the investment of business and how we balance this. I would say it's always this trial of conciliating growth with dividend payout, but without a precise number.

This number is always decided with a perspective of the results of the company, and that's what we did this year. That's how we were able to give this higher level of payout.

Thank you very much. Another question was about smart metering.

What's the perspective of investment in the next years, and what is the efficiency in terms of costs that you expect in terms of, for example, and how are the discussions with ANEEL, with Enel?

Guilherme, sorry, I had a little problem here with my sound. In relation to the smart meters, we have a project which is already ongoing.

We've installed last year almost 100,000 smart meters, and we are installing almost 700,000 this year. The cost of the smart meters has dropped a lot, which brought benefits for the project.

We have the expectation in relation to the gains, the operational gains, we are implementing all the parallel network. Only after this implementation will we be able to verify the operational gains with the cut, reductions, reading, delivery of bills, and losses.

All of this is going to be very well calibrated. The expectation is good in terms of reduction and efficiency gain, and we are finishing this installation project so that we are able to work and measure and return with these benefits.

We have also the perspective of cost. When we are able to monitor online.

For recognition, I think these conversations has advance. I think we have a way to advance.

I think the regulator has understood the importance of this investment, and having this annual recognition, we unlock these investments in speed. Line between last year and this year, it's about 800,000 smart meters installed, an average of 400,000 per year.

We're going to take 25 years to install 100% of our smart meters, which is a long time. We want to accelerate these investments and bring all this investment not only for our operation, but also for the client at the tip, and also the tariff change.

I think this is a very important project for the sector, and it is probably the big step in terms of innovation and modernization that we have today. It's a challenge for us as a company, not only CPFL, but the whole sector is how we combine this to have a regulation that, in fact, incentivizes this type of investment and how we can accelerate even more the investments that are being carried out today.

I think this is a challenge and the conversation is on the table, and we show ourselves as being very open to having this discussion.

Thank you very much. ]:

Let's move on to the next question. It comes from Ricardo Bezerra from Safra Bank.

Ricardo, we're opening your audio for you to be able to speak.

Good morning. I have two questions.

I'd like to know how you see the competitive scenario about transmission and the offerings. The second question, it has to do with this organic growth.

What are you thinking of eventual opportunities in M&A? How's your radar for new businesses this year?

Good morning, Ricardo. This is Vitor Fagali.

To answer your questions, I think the first point we're seeing about this transmission auction. It'll be as competitive as the last ones.

We have had a split of the auction block, we're waiting for the precise dates for the second block. This first block has been scheduled for March, we don't think that we'll have anything very different from the past.

Looking here within our capital discipline, some lots here that make sense to the company. Migrating here for your second question, the company, which is always monitoring all the opportunities for growth, very much aligned with what Gustavo mentioned is the policy of dividends.

If there's an M&A that makes sense for the company and where we're able to have the return that we expect, for sure, CPFL will do its homework, and if it makes sense, we will advance. The market today is a bit more restrictive.

I think we have the interest rates, we have some uncertainties as well. I think the curtailment itself is a topic that decreased the appetite for renewable energy, but our expectation of the solutions that we have today on the table, we hope that the market will open with more demands for investments.

Thank you very much.

Thank you. ]: We don't have any more questions, we're going to end our session of questions and answers.

If there's any question or any doubt, the team of Relation Investors is [unclear] to clarify. Now I'm going to give the floor to Gustavo Estrella for the final considerations and for the closing remarks.

Thank you very much for the participation. I think our call one more year with a very robust result here in the company, very stable, and talking about this balance of growth with dividends, I think here we have good news: the announced dividend, record CapEx, the auction of the Lot 3 that we're going to start executing the investment now in 2026.

I believe this continues being our strategy, looking for positive opportunities of growth with a solid base of results, also always wanting efficiency and cost reduction. This is our history in the last years, and for sure, it won't be different when we look at the future.

What most affects us and is most relevant to our business, I think is the renewal of the concession of the distributors. We are in this process of signing with the Ministry of Mines and Energy, all this process approved by ANEEL and by the TCU, this is more approval, and this is an important step when we look at the distribution.

We can count these impacts.

I think this brings good stability for the generation sector, and it does not address 100% of the challenges that we continue having in the generation sector with the intermittency of sources, etc., and the growth of the matrix, but I think it's an important step for us to look forward, not only the commitment which is going to take care of the past, but also the regulation of the solutions of curtailment from now on. These are important topics, important advances which follow with our attention and our contribution to go after the best solution for electric sector.

Thank you very much to all of you, and have a wonderful day.