AXIA Energia (AXIA6) Corporate presentation summary

Company overview

• Operates 44.4 GW of installed capacity, representing 17% of Brazil’s total, with 99% hydro and 100% renewable sources.

• Manages 74,829 km of transmission lines, covering 37% of Brazil’s high-voltage network, with predictable, inflation-protected revenues and a regulated WACC of IPCA + 12.12%.

• Holds minority interests in 49 companies, with a combined market value of R$ 6.7 billion and book value of R$ 16.5 billion, focusing on portfolio optimization and value creation.

• Recent corporate actions include streamlining structure, divesting thermal and nuclear assets, and migrating to Novo Mercado for enhanced governance.

• Transitioned from turnaround to sustainable growth, emphasizing risk mitigation, cost restructuring, and accelerated investments.

Investments

• Contracted transmission investments exceed R$ 15 billion, with large-scale projects adding R$ 2 billion in additional RAP between 2026-2030.

• Annual investment level projected at R$ 12-14 billion for 2025, focusing on transmission, modernization, and expansion.

• Generation investments include R$ 1 billion to add 247 MW to Luiz Gonzaga HPP.

Capital allocation methodology

• Up to R$ 3.7 billion available for allocation in 2Q26, with a total of R$ 7.7 billion in 2026 for dividends, share buybacks, and investments.

• Leverage targets set at 3.0-3.5x for generation and 3.75-4.25x for transmission, with a five-year horizon.

• Expanded leverage calculation includes financial debt, privatization obligations, and compulsory loans.