Thank you. Good morning, everyone.

I would like to say good morning to our investors, analysts, shareholders, and everyone attending the conference call for the earnings of Copasa for the first quarter of 2026. In our last conference, I shared the view that Copasa was in a decisive phase of execution, and the first quarter of 2026 confirms this path.

It was a period marked by important advancements that we consider important for the long-term pathway of the company, investments and in addition to the continuation of the transformation agenda conducted by our controlling shareholder. The main point that I would like to highlight is the execution of our investment plan.

Copasa started the year with a strong capex rate, especially targeting the expansion and modernization of water and sewage treatment systems, improvement in the quality of services, and water safety. For shareholders and investors, this is an important message because it shows the conversion of the strategic planning into concrete deliveries based on assets that sustain the regulated growth of the company.

We have also advanced in operational efficiency, with one more reduction in the losses rate of distribution. This deserves special attention because it connects the operational quality, conservation of water resources, productivity, and potential to generate value.

The agenda to reduce losses will continue a priority of the management, supported by technology, modernization of networks, replacement of water meters, and continuous improvement of operational processes. Another important advance in the quarter was the predictability of regulations.

The third regulatory review brought important advances for the cycle 2026–2029, including mechanisms that contribute to clarify the recognition of assets in addition to the economic and financial sustainability of the business. A predictable regulatory environment is key to perform well in one of the most significant investment cycles of Copasa.

The municipality of Belo Horizonte, we renewed the concession up to 2073, which is an important factor to reduce risks. Belo Horizonte is a strategic concession, and this advancement reinforces the company's capability to build institutional solutions and ensure continuation of investments in a key area for our operations.

I add also that we made efforts to negotiate with other cities. We conducted several meetings in addition to the articulation with city authorities that ended at last week's agreement to include the municipalities in which the company does not operate in sewage treatment.

We also advanced for water safety and sustainability, which are topics directly connected to the resilience of our business model. The situation of the main reservoirs remains favorable, but we remain prudent and treating in a long-term view the water condition, especially in a higher variability of climate conditions.

I would like to reinforce that the destatization process is conducted by the controlling shareholders. Copasa continues to contribute technically, observing the material facts disclosed to the market and maintaining absolute focus on the governance, operational feasibility, and compliance with its regulatory and contract obligations and execution of investment plan.

The destatization plan continues according to the schedule defined by the controlling shareholder. As communicated to the market, we launched the previous step of qualification of a reference investor.

Naturally, the quarter also brought some points of attention on the short term that will be detailed soon by the presentation by the CFO, Adriano Moura. I would like to reinforce right now is that we are keeping track of these topics with discipline and a focus on efficiency.

We believe that the first quarter of 2026 should be understood as an execution quarter in which significant structural advances work hand-in-hand with the need for continuous attention to costs, productivity, and quality of revenues. The core message for shareholders and investors is that our strategy remains consistent.

We continued to be focused on universalization, universal access to the sewage and water treatment, regulatory compliance, capital discipline, water safety, and sustained generation of value. These are the factors that sustain our management, as well as the construction of the next cycle of Copasa.

I thank you all again for your attendance and the dedication of our team. Now I turn the floor to our CFO, Adriano Moura, who will present the main financial and operational results of the period, and then later on I'll be back to answer the questions from the audience.

Thank you. Moura, go ahead.

Thank you, Marília. Good morning, everyone.

Thank you for your presence in the conference call of Copasa regarding the first quarter of 2026. Let's look at the main highlights of the quarter.

The water volume both in water and sewage remains stable compared to last year, 170 million cubic meters for water and 118 million cubic meters for sewage, a volume that's below what is expected considering that there was an increase in connections of water of 1.6%, 2.3% in sewage. The low temperatures ended up reducing the expected usage of water.

We also had a tariff readjustment of 6.56% effective as of January 2026. Net revenue reached 1.9 billion reais, an average growth of 2.5%, also a little bit below what we expected because in addition to the volume, there was an unfavorable or less favorable mix considering a higher increase of the social category that pays the lower price.

Costs and expenses, 1.06 billion, 4.7% higher, mainly due to the increase in PCLD and other judicial topics, which will be explained later. EBITDA margin close to 41% at 787 million, followed by a robust cash from operations amounting to 675 million reais.

Net income of 368 million, a reduction of 14%, that in addition to the depreciation due to more investments, was also impacted by the reduction in EBITDA. Dividends in the 1Q 2026 amounted to 278 million reais paid in May, in addition to remaining dividends of 2026, or '25 rather, that will be paid of approximately 140 million reais.

As Marília mentioned, we highlight the high level of capex, 30% higher than 2025, 695 million, which is a new record for the first quarter of the year. Leverage of 2.4 times on March 31st, which grew because of higher investments compared to 1.8 times on March 31st, 2025.

The other highlight mentioned by Marília is the recognition of BH amendment that extends the term to 2073. That affected the balance sheet on intangible assets, as well as obligations to the granting authority, and in addition to a credit referring to the reduction of financial debts and adjustment of the debt to present value.

The last highlight mentioned by Marília is the recovery in reservoir levels of the Paraopeba system that operated at 83.5% of its capacity, which provides a safety for the system. Continuing, the operational efficiency, as Marília highlighted, is one of our strategic priorities, and we are advancing considerably in this agenda.

We are reducing a structuring program focused on the centralization of the operating model, productivity, and cost discipline, capturing permanent efficiency gains. In the latest months, just to give a few examples, we structured the new operations model with more centralization, and with a complete review of processes, will start shortly optimization investments.

Since August last year, we have in operations our Shared Services Center with more than 150 services centralized, with a lot of improvement opportunities identified. We also using the zero-base budgeting model.

As I mentioned in the last call, we have 100 initiatives mapped, many of them will be executed in 2026. Recently, we created a very important area with strategic negotiation of procurement.

We have mapped 600 suppliers, and the goal is to improve efficiency and quality in contracts. Continuing with the next slide, we see the development of EBITDA.

The positive area is the tariff increase implemented in January, but there was a decrease or in mix, which was an increase in social tariffs and a volume below expected, considering the extra connections we made both in sewage and water. In personnel, although the adjustment, there was a reduction of costs, which reflects lower costs with overtime and reduction of 170 employees.

Third-party services, outsourced services, have grown because we need more people for metering because we need bigger coverage for that, and maintenance and operational logistics, costs increased a bit. There were important reduction in other costs, such as materials, in addition to the tariff adjustment, which affected the cost of electricity and also fees for electricity are higher this quarter.

In PDA is a very important item, and it was affected because there was an atypical reduction occurred in that quarter due to a special renegotiations. We went back to a level that's considered normal regarding the amount of bills to fall due, or accounts payable, but there is also an impact on the provision for doubtful accounts.

Considering next slide, the net income ended the quarter at 168 million, a reduction—at 368 million, a reduction of 14% compared to the first quarter '25. The first impact came from financial results, appreciation, amortizations.

In the financial results, there was a significant impact of mark-to-market of hedge and foreign exchange securities because we have debts in euro, and that reflected in the appreciation of real compared to euro with impact on financial results. It's important to highlight that this is an effect that's mainly on the books of the company, it doesn't affect our strategy or operations.

On the taxes side, we continue to have a very efficient tax rate around to 20%, reflecting also then incentives and a maximum optimization of interest on equity to plan for taxes. The next slide, we see operating cash generation, which was strong.

Net generation amounted to 675 million, which is in line with the same period of last year despite the acceleration of capex, the growth of investments funds, and the growth in operational efficiency. We ended the quarter with robust cash, and we also raised funds of 2 billion reais, which will meet our demands for the next investment period.

Speaking of investments, on the next slide, we see the highlights of a historical history of investments since 2021, with important investments made in the last two years. We continue to prioritize sewage universalization, also reduction of losses, water security, and retrofit of wastewater treatment plants.

Talking about capital structure and indebtedness on the next slide, indebtedness has grown due to higher investments. We've grown by 1.7 billion compared to the previous quarter.

Despite that, our leverage is quite comfortable, and we continue with the good capacity to invest, and continue with continuous improvement of our EBITDA. Closing the presentation, we highlight the consistent evolution of our main indicators.

We continue to see a structural path of reduction of losses, given by modernization of our systems, in addition to initiatives to reduce losses. In delinquency, this increase of 3.09 is going back to regular levels in April, we see a positive trend towards the next months.

Finally, the indicator of employees per connection, which reached 1.16, which reflects a decrease in the number of employees, but also more efficiency. This ends the presentation of the financial and operational results of the first quarter.

We remain confident in the execution of the strategy of the company, expanding investments, and we will maintain the financial discipline and continue with our capacity to generate sustainable growth in the long run. Let's now go to the Q&A session.

Thank you.

Thank you for the opportunity to ask questions. I have two questions.

First, about delinquency, if you could talk about this increase we had in this quarter and highlight what's the quarter to expect in the next quarter and what has been the most recurring profile regarding delinquency? If you could give us some more color on the destatization, or privatization, process, and about the discussions you've made with the municipalities?

I don't know how much you can talk about that, but if you can give us some more color about that process and schedule. Thank you.

This is Jacomini speaking. I am the commercial officer of Copasa.

Regarding delinquency, we're putting more pressure on the residential users, and there has been a lot of indebtedness in the families, and that impacted our revenues. Some lower levels of delinquency are already established for April, and we have some projects to reduce that by improving collection processes.

We just signed a new agreement with Serasa credit bureau, and also using WhatsApp to talk to debtors, and that will improve the performance.

Oh, thank you, Cleyson. Continuing with your question, this is Marília speaking.

We have constantly talked to the city authorities since we started in the concession of agreements. As I said, we signed the agreement with Belo Horizonte, and recently, based on a communication to the market, we started a renegotiation tool, which is the advances on the sanitation municipality fund.

It's important to highlight the recent publication of the decree that regulates the regional water and sanitation units gives a term, a deadline for June 23 for the municipalities to adhere to that. That's an important tool for the conversion of the contracts with municipalities.

In addition, we're working with the Minas Association of Municipalities. We had a meeting, a general meeting, with all the authorities of the municipalities, where we could show the advantages in the conversion of these contracts.

We continue with the negotiation to increase the number of municipalities that will convert their contracts to concession agreements. As I said, the destatization process is conducted by the controlling shareholders of the company.

We follow all the bases that are established in law, and the Court of Accounts is analyzing it. There's no pending issues regarding the data on the side of the company.

We entered the previous qualification phase for the reference investor, and we'll then move on to the following steps in the process.

Thank you for the explanations.

We are accelerating this conversion to the greatest extent possible so as of 2027 we have the highest level of investments. We are progressing well.

Last year, in the first quarter of '25, we were able to attain a record high in that regard that was included in the asset base of 2026, and the same is being made now for 2027. Everything that we invest and we are able to include in the basis until June of this year will have the impact on tariff starting on January 1st, 2027.

We're working for that conversion to be as high as possible, and the process is going well. I don't know if you want to make any comments, but feel free if you want to.

Moura, if you want to make...

The investment rate has been growing 30% to 35% a year, and likewise, we've tried to optimize and accelerate the process, and the conversion rate in the unitization is at the same level. The investments are growing, the trend is to grow at closing the cycle until the first half of this year.

We don't have the answer to that now. That was a question sent by Itaú Bank, if I'm not mistaken.

Marília, would you like to add anything to that?

No, this is it. The step has been completed on Friday.

We still don't have that information. As soon as we have it, it will be disclosed to the market.

About the question about the situation of municipalities in the integrated system, it's important to highlight that the adherence to the conversion of the agreement is a decision that's up to the municipality to make. As I said, we are negotiating and explaining to all the city authorities that are part of the integrated region, as well of the state of Minas Gerais that are within the concession area of the company.

We have some data based on secondary data because we don't operate in those municipalities, but as soon as they adhere or sign the agreement, we'll make a diagnosis of all municipalities to understand what is the need for additional capex.

Flávio, we do not control the price. The tariffs are defined by ARSAE.

It's an independent regulatory agency, we do not have that information. The second question you asked, I'll turn the floor over to Marília to answer.

Are you considering the possibility of contract unification after all municipalities adhere to URAE-D?

Thank you, Moura. Flávio, yes, this is a possibility.

We are studying it as the municipalities adhere to the proposal until the end of June.

Good morning. As Moura mentioned, these topics are to be defined by ARSAE mainly, but we understand that will be automatically taken into account in the tariffs.

Considering that if all the municipalities start at the same time, we don't know their situation, we don't know if we would start sewage collection. I believe it will be a regular process considering the regulatory processes.

Continuing to answer the question that's also related about this one related to investments, going back to what Moura said, the agency is independent and defines that, but it will analyze the payment capacity of users. There's no expected amount regarding that that we can say on our side.

Thank you.

Thank you. Thank you all for attending this conference call.

I would like to thank again the participation of all shareholders, investors who are here with us in this earnings conference call. Copasa remains committed to transparent, timely, and accessible communication to the market.

We know how important it is to maintain permanent dialogue with stakeholders, especially in important moments for the company. We continue to advance with our investment agenda, operational efficiency, and preparation for the next growth cycle.

We would like to thank the work of our team, who remains committed to executing the company's strategy, providing quality services to the population, and sustained generation of value for shareholders. Our Investor Relations team is fully available to answer any additional requests for information, clarifications, or requests of meetings with shareholders or investors.

We thank you for your attention and continuous interest in Copasa. I wish you a good day.