Transmissora Aliança de Energia Elétrica (TAEE11) Status update summary

Acquisition overview

• Acquired a portfolio of 5 operational transmission assets for R$1.5 billion, with all assets fully operational as of May 2024.

• Assets are located in regions already familiar to the company, enabling operational integration and synergies.

• The acquisition adds R$291 million in RAP for the 2025-26 cycle and increases transformation capacity by 33%.

• The transaction maintains the company’s credit profile and dividend payment practices.

• Existing debt on acquired assets totals R$748 million, with long-term, attractively priced financing.

Strategic and financial impact

• Number of concessions rises to 49, with a 9% increase in transmission line length and 8% more substations.

• Diversification improves, with assets in areas less prone to extreme weather and a 22-year average remaining contract life.

• Acquisition fully financed by bridge loans from Bradesco and Itaú, with peak leverage expected in 2026 and deleveraging from 2027.

• Maintains a track record of distributing 100% of regulatory net income as dividends over the last five quarters.

• Debt profile of acquired assets is long-term, aligned with concession durations, and features competitive costs.

Growth and operational strategy

• Acquisition supports a capital allocation strategy focused on efficiency, profitability, and disciplined investment.

• Expands installed base and mitigates operational risk through technical and geographic diversification.

• Enables future growth via reinforcements, improvements, and selective M&A.

• Integration with existing operations leverages established management and technical teams.

• RAP is distributed across 147 transmission functions, reducing exposure to variable components.