Companhia de Saneamento de Minas Gerais (CSMG3) investor relations material

Executive summary

• Privatization completed, with Equatorial acquiring a 30% stake and a new governance model implemented, enabling a new strategic cycle focused on efficiency, investment, and value creation.

• 43 new or renewed concession agreements signed, extending average concession term from 13 to 29 years and covering 37.5% of net revenue, with all expiring in 2073.

• Net revenue reached up to R$2,271.4 million in 2Q26, up as much as 14.7% year-over-year, driven by tariff adjustments and higher water/sewage volumes.

• Adjusted EBITDA rose to R$762.1 million in 2Q26, with a margin of 39.0%, and net income declined due to higher costs, depreciation, and financial expenses.

• Non-recurring expenses, labor claims, and extraordinary items impacted quarterly results.

Financial highlights

• Net revenue increased up to 14.7% year-over-year in 2Q26, with consolidated 1H26 revenue at R$4,399.5 million.

• Adjusted EBITDA reached R$762 million, up 11.7% year-over-year, with a margin of 39.0%.

• Net income for 2Q26 was as high as R$275.5 million, down 4.8% year-over-year, mainly due to higher depreciation, amortization, and financial expenses.

• CapEx totaled up to R$1.5 billion in 1H26, a 27% increase year-over-year, focused on infrastructure and modernization.

• Operating cash generation was R$670 million for the quarter, with cash and equivalents at R$1,170.0 million at 2Q26 end.

Outlook and guidance

• Focus on executing the post-privatization agenda: operational efficiency, investment, and disciplined capital allocation.

• Universalization of sewage services on track, aiming for 90% coverage by 2033, with 82.2% expected by year-end.

• 43 contracts under the new regulatory model now represent 37.5% of annual net revenue, all expiring in 2073.

• Regulatory changes (3rd Tariff Review) provide a more predictable framework and reinforce economic-financial balance.

• Transformation PMO established to oversee governance, execution, and delivery of results.