Slides
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November 4, 2025 Earnings 3Q25 Building COPASA’sFuture: Efficiency, Growth and Value in a New Scenery
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701 million in Operating Cash Flow generated in 3Q25, 26% higher than in 3Q24 Hedge Contracted (swap to IPCA+) on 65% of debt in foreign currency Highlights – 3Q25 2 Record Investments in 9M25: BRL 2.0 billion in CAPEX (+26% vs. 9M24) Regular Dividends (3Q25): 345 million paid in 1H25 and 170 million to be paid on 11/10 Losses Reducion to 37.3% in 09/2025 (-1.1 p.p. vs. 09/2024) Tariff Review: +5.50 Preliminary Average Tariff Effect Aproppriate Leverage Level of 2.1x (1.8x on 09/2024) 9M25: 2.2 billion in EBITDA (+3.3% vs 9M24) and a 40.2% margin
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Process-Driven Organizational Restructuring ❑ Implementation in 10/2025 of the Shared Services Center (CSC) ❑ Redesing of the Operaions Department’s operating model (10/2025) CAPEX Planning ❑ Implementation of the new CAPEX management model Operational Efficiency ❑ Launch of the Zero-Based Budget implementation process for 2026 ❑ Application of Advanced Analytics in fraud management ❑ Application of Strategic Sourcing in sevice contracts Strategic Planning Review ❑ Launch of the Strategic Planning review process (2026-2030) 3 Value Creation Agenda Key initiatives focused on asset base growth and efficiency gains
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726 727 39.3%40.5% +1 / +0.1% Costs and Other Expenses (excluding depreciation) +5.6% / 59 Net Revenue +3.4% / 60 Outsourced Services Non- Manageable Costs Personnel OthersVolume Mix Price Reduction in volume-mix and increase in non-manageable costs impacted the quarterly results Evolution of EBITDA (3Q24 vs. 3Q25) Focus on long-term operational efficiency Revenue: ❑ Reduction in volume-mix (low temperatures) Costs and Other Expenses: ❑ Personnel: impacts from ACT, offset by a reduction of 200 employees. (2%) ❑ Outsourced Services: price adjustments, service expansion and non-recurring expenses (13MM) ❑ Non-Manageable Costs: Electricity tariff increases and red flag surcharge +114 4 3Q24 3Q25 (BRL million)
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Net Income(3Q24 vs. 3Q25) Profitability and Financial Sustainabilty Increase in depreciation due to the completion of construction works leads to a slight reduction in net income 5 3Q24 EBITDA D&A Taxes Financial Result Others +1 -40 +14 +17 -0.2 3Q25 -7 / -2.0% (BRL million) 368 361
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-153 501 +554 -576 +391 871 3Q24 3Q25 Operating Cash Flow: 701 MM 6 (BRL million) Cash Balance – Quarter Start Operating Activities Financing Cash Balance – Quarter EndCapex 280 +559 -620 +1.091 843 871 +701 -701 501 -217 IoE + Dividends -467 Operating Clash Flow Sustaining Investments and Dividends
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Strategic Investments Building the Asset Base of the Future Coverage • • Water: > 99.4% Sewage: 78.4% 7 Investment Focus Sewage Universalization Water Security Loss Reduction Retrofit of Wastewater Treatment Plants (BRL million) 1,966 1,555 1,190940597 576 614 438 366 406 20252024202320222021 9M 4T 2,169 1,628 1,306 1,003 2,542 3,8263,726 3,4263,426 2029202820272026 Previsto (3Q25) 26% increase in investments on 9M25, reaching BRL 2.0 Bi 4Q Predicted
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Capital Structure Controlled Leverage and Investment Capability Ratings – National Scale •Moody’s: AAA.br – Stable (july/2025) •Fitch: AAA(bra) – Stable (april/2025) Weighted Avarage Term: 8.3 anos Cupom Médio Amortization Schedule (BRL million) 29.9% 12.1% 38.8% 17.7% 09/2023 09/2024 957 996 680 775 718 468 464 343 133 67 09/2025 295 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 to 2043 Leverage in 2.1x, with an appropriate amortization schedule 8 Debt Indexers (3Q25)(*) 38.9% 29.7% 17.6% 12.3% 1.6% IPCA CDI Moeda Estrangeira TR TJLP 9.4% 8.1% 9.3% 09/2023 09/2024 09/2025 Average Coupon (%) 3.4 5.2 6.1 1.4 1.8 2.1 09/2023 09/2024 09/2025 Dívida Líquida Dívida Líquida/EBITDA (nº de vezes) Leverage and Net Debt (BRL billion) (*)BEI debt Hedge - €90.5 MM – IPCA + 7.4% a.a / KfW - €32.5 MM - IPCA + 6.41% a.a. 519 Net Debt Net Debt/EBITDA (number of times) Foreign Currency
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Operacional Performance Efficiency in Evolution Continuity of Actions Taken 9 Distribution Loss Index (%) 40.5 12/2020 40.1 12/2021 39.4 12/2022 38.6 12/2023 38.1 12/2024 09/2025 • Annual replacement of ~20% of water meters • Use of satellite technologies, specific algorithms, and equipment such as ground-penetrating radars, geophones, rods, and cameras in the search for non-visible leaks • Contracting the replacement of 350 km of water networks (BHMA) • Slight Increase, especially among the residencial and social categories • Continuation of credit recovery and debt regularization actions • VSP programs implemented in 2021 and 2023 • Specific shutdowns11,393 10,692 10,185 9,542 9,613 9,473 1.55 1.42 1.33 1.23 1.22 1.19 0 0,5 1 1,5 2 0 5000 10000 15000 20000 12/2020 12/2021 12/2022 12/2023 12/2024 09/2025 Empregados Empregados/Mil Ligações Employees 4.52 3.5 3.22 2.97 2.92 3.01 12/2020 12/2021 12/2022 12/2023 12/2024 09/2025 Delinquency (%) 37.3 Employees Employees/Thousand Connection
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3rd Tariff Review New Cicle, New Oportunities Focus on proper capital remuneration for universal access demand 1st PHASE May/24 to Aug/24 2nd PHASE Jul/24 to Jul/25 3rd PHASE Aug/25 to Nov/25 01/01/2026 • Application of Methodologies • Final Calculations • Results Disclosure (until 12/02/2025) • TariffApplication• RAB • WACC • Costs • X-Factor • Annual Adjustment Methodology • TariffStructure • Guidelines • Schedule Key Advancements: ▪ Increase of WACC from 7.924% to 9.419% (preliminary value) ▪ Annual recognitions of investments made throughout the cycle and end of PMT ▪ Partial sharing of efficiency gains Average Tariff Effect: 5.50% (preliminary) 10
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Q&A
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DISCLAIMER Any statements made during this presentation referring to COPASA MG business prospects, projections, and operational and financial goals consist of assumptions and expectations of the Company’s Management, based on information currently available. They involve risks and uncertainties, as they refer to future events, and therefore, depend on circumstances that may or may not occur. Changes in the macroeconomic policy, legislation, or other operating factors may affect COPASA MG future performance, leading to results that are materially different from those expressed in such remarks. The data refers to the Parent Company and its wholly- owned subsidiary, COPASA Patos Saneamento.
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ir.copasa.com.br ir@copasa.com.br +55 (31) 3250-2015 CONTACTS: