Equatorial Energia (EQTL3) Investor presentation summary

Transaction overview

• Acquisition of a 30% equity stake in Copasa for R$5.6 billion, with potential to increase to 42.62% for R$7.95 billion, funded via debt and subject to regulatory approvals.

• Lock-up agreements restrict share sales for up to 7.5 years, with governance rights and vetoes for the State of Minas Gerais.

• Timeline includes bid submission, pricing, funding, and settlement in June 2026, followed by regulatory and governance steps.

Copasa business highlights

• Net RAB of R$15.7 billion and adjusted net revenue of R$2.9 billion LTM, with net income of R$1.36 billion.

• Water coverage at 99% and sewage coverage at 80.4%, serving 5.8 million water and 4.3 million sewage consumer units.

• Average concession term of 28 years, with renewals extending up to 2073 and incentives for municipal adherence.

Governance and shareholder structure

• State retains a golden share with veto rights and board representation; voting limits and poison pill provisions in place.

• Shareholders' agreement requires State consent for key matters and includes a termination penalty for amendments.

• Non-compete agreement restricts sanitation opportunities in Minas Gerais to Copasa, with exceptions.