Financial Data and Key Metrics - Load growth was 2.4% in Q3 and 4.9% year-to-date (YTD) [3] - EBITDA grew by 0.7% to BRL 3.155 billion in Q3, with YTD EBITDA at BRL 9.858 billion [3] - Net profit increased by 1.5% to BRL 1.3 billion in Q3, but YTD net profit declined by 0.5% to BRL 4.1 billion [3] - Net debt stood at BRL 26.6 billion with a leverage ratio of 2.04x EBITDA, within financial covenants [3] - CapEx grew by 17.8% to BRL 1.4 billion in Q3, with YTD CapEx at BRL 3.9 billion, targeting BRL 5.9 billion for the full year [3] Business Segment Performance - Distribution segment saw a 3.5% decline in EBITDA, while generation grew by 0.6% and transmission surged by 42.6% [14] - Commercialization segment experienced a significant drop of 61% due to market and tariff effects [14] - Distribution losses increased slightly, with fraud and climate events contributing to the challenges [11] - Wind generation faced curtailment effects, reducing growth from 19.5% to a decline of 3.7% [13] Market Performance - Industrial market grew by 4%, with robust growth in chemicals, rubber, vehicles, and metallurgy sectors [7] - Residential and commercial sales grew by 9% YTD, while industrial sales increased by 2.6% [9] - Delinquency rates remained stable but high, with expectations of improvement in Q4 [10] Strategic Direction and Industry Competition - The company launched a green hydrogen pilot project in Rio Grande do Norte, aiming to produce 3 gigawatts annually by 2027 [24] - The project is expected to reduce CO2 emissions by 12.5 tons and is seen as a scalable business model [24] - The company is focused on innovation and quality for clients, with a positive outlook on concession renewal [38] Management Commentary on Operating Environment and Future Outlook - Management highlighted positive market performance and a positive economic growth outlook for 2025 [36] - Discussions on curtailment and concession renewal are ongoing, with a positive expectation for sector-wide solutions [37] - The company remains focused on long-term stability and investment programs [38] Other Important Information - The company received several awards, including recognition for ESG performance and diversity initiatives [4][5] - Wang Kedi was elected as a new Board of Directors member, reflecting the company's commitment to diversity [5] Q&A Session Summary Question: Impact of ONS changes and regulatory reclassification - The changes have not yet had a significant impact, with some restrictions reduced in specific areas [27] - Discussions with regulatory bodies are ongoing, with no official response on reclassification yet [28] Question: Dividend dynamics and concession renewal - The company is managing dividend dynamics and concession renewal separately, with a focus on maintaining VNR accounting until the end of the first concession [31] - The impact on dividends is seen as more of an accounting issue rather than a cash flow concern [32] Question: Introduction of new CFO Wang Kedi - Wang Kedi introduced herself as the new CFO, emphasizing her commitment to maintaining strong relationships with investors and the market [34]

2Q24 Results Energy for a more sustainable future Uso Público CPFL Initial Guidelines Click on "Interpretation" Click on "Raise Hand" ID Yourself Simultaneous Translation into English: Choose "English" 01 02 01 02 For the English version of the presentation, please access: www.cpfl.com.br/ir Q&A Session • Your audio will be opened for you to ask the question live directly to the executives • Inform your name and institution Uso Público CPFL 2Q24 Highlights R esults | --- | --- | --- | --- | --- | |--------- ...

Financial Data and Key Metrics Changes - The load in the concession area increased by 7.3% in Q2 and 6.3% in the semester, driven by residential consumption with double-digit growth [3] - EBITDA decreased by 7.1%, totaling R$8 billion for the quarter and R$6.7 billion for the semester [3] - Profit dropped by 11%, reaching R$1.2 billion for the quarter and R$2.8 billion for the semester [3] - Total debt reached R$26 billion with a leverage ratio of 2.01 [3][17] - CapEx grew by 12%, amounting to R$1.4 billion for the quarter and R$2.4 billion for the semester [3][18] Business Line Data and Key Metrics Changes - Distribution reported a drop of R$115 million, impacted by floods and increased costs [14] - Generation experienced a decline of R$71 million, primarily due to lower wind generation and climate events [15] - Transmission showed stability with a positive EBITDA growth of R$25 million driven by revenue from the RAP [15] - Commercialization and Services reported an EBITDA of R$5 million, affected by contingencies and net debt expenses [15] Market Data and Key Metrics Changes - The market grew by 6.1%, with residential and commercial sectors showing over 11% growth [8] - Industrial performance improved despite the crisis, with a recovery speed exceeding expectations [9] - Delinquency rates increased to 1.8%, influenced by higher average ticket prices and challenges in bill payments [10] Company Strategy and Development Direction - The company is focused on rebuilding efforts in Rio Grande do Sul following significant operational impacts from floods [5][6] - There is an ongoing collaboration with ANEEL to delay tariff adjustments to mitigate economic impacts [7] - The company aims to enhance inspections and monitoring to reduce distribution losses and delinquency rates [11] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery speed in Rio Grande do Sul, which is faster than anticipated [24] - The company is awaiting regulatory developments regarding the renewal of distribution contracts, which directly affect its business [24] - A more positive market growth perspective is anticipated, particularly in low tension classes and among lower social classes [24] Other Important Information - The company celebrated five years since its IPO and received multiple recognitions for corporate governance and customer focus [4] - Significant donations and support efforts were made to assist affected populations in Rio Grande do Sul [7] Q&A Session Summary Question: Expectations regarding the conclusion of new terms for the renewal of Distribution contracts - Management indicated that the auction process is delayed, and the timeline for conclusion is uncertain [21] Question: Additional inquiries - No further questions were raised during the session [23]

Financial Performance - Net operating revenue for 2019 was $7,427 million, an increase from $7,427 million in 2018, representing a growth of 4.1%[25] - Gross profit for 2019 reached $1,632 million, up from $1,632 million in 2018, indicating a gross margin of approximately 22%[25] - Profit for the year attributable to owners of the company was $671 million, a 3.5% increase compared to $658 million in 2018[25] - Total assets as of December 31, 2019, amounted to $10,937 million, compared to $10,937 million in 2018, reflecting a stable asset base[27] - Total current liabilities increased to $2,498 million in 2019 from $2,498 million in 2018, indicating a rise in short-term obligations[27] - Dividends declared for 2019 were $159 million, an increase from $159 million in 2018, with dividends per share at $0.14[25] - The company reported a net financial cost of $(180) million in 2019, an improvement from $(726) million in 2018, indicating better financial management[25] Customer and Market Growth - The company served a total of 9,756 thousand consumers in 2019, an increase from 9,580 thousand in 2018, showing a growth in customer base[30] - Energy sold to final consumers totaled 53,375 GWh in 2019, slightly up from 53,091 GWh in 2018, indicating stable demand[30] - Installed capacity increased to 4,304 MW in 2019, up from 3,272 MW in 2018, reflecting ongoing expansion in energy generation capabilities[30] Regulatory Environment - The company is subject to extensive regulation by ANEEL, which affects financial performance and tariff adjustments[35] - Tariff adjustments include annual adjustments (RTA), periodic revisions (RTP), and extraordinary revisions (RTE), with recent adjustments resulting in an average decrease of 7.80% for CPFL Piratininga and increases of 16.90%, 22.47%, and 20.58% for other subsidiaries[44] - The company may face penalties of up to 2.0% of net operating revenue for breaches of concession agreements, which could adversely affect financial condition[50] - The company’s distribution business may be required to reimburse consumers for inaccurate billings for up to ten years, which could significantly impact financial results[49] - Regulatory changes could require the company to alter its operations significantly, adversely affecting financial results and contractual obligations[40] - The company cannot guarantee the renewal of its concessions and authorizations, which could materially affect its financial condition and operational results[42] Operational Risks - The company must forecast electricity demand accurately; under-forecasting may lead to purchasing electricity at volatile spot market prices, while over-forecasting may result in selling surplus energy at lower prices[58] - The operational capacity of Hydroelectric Power Plants is highly dependent on reservoir levels, with potential electricity shortages adversely affecting financial results[71] - The company faces significant risks in the construction and operation of electricity facilities, which could lead to lost revenues or increased expenses[76] - The company is subject to strict liability for losses and damages resulting from inadequate electricity service provision, which may adversely affect its financial condition[87] Investment and Capital Expenditure - The company plans to invest R$1,158 million in generation activities, with R$1,085 million allocated to renewable sources and R$73 million to conventional sources from 2020 to 2024[85] - Total planned capital expenditures are R$3,069 million for 2020, R$2,924 million for 2021, R$2,906 million for 2022, R$2,334 million for 2023, and R$2,306 million for 2024[86] - The company has made substantial capital investments of R$972 million in renewable energy generation businesses over the last three fiscal years, primarily in wind generation[88] Economic and Market Conditions - The current macroeconomic situation in Brazil, including increased energy prices and the COVID-19 pandemic, could lead to a higher risk of consumer defaults, adversely affecting operational results[116] - The Brazilian economy and outlook may be adversely affected by the COVID-19 pandemic, leading to significant harm to the company's business and financial condition[136] - Increases in the number of COVID-19 infected patients in Brazil have negatively impacted the economy and financial markets, potentially reducing the company's revenues and income from operations[138] - The SELIC interest rate in Brazil fluctuated from 13.75% as of December 31, 2016, to 4.5% as of December 31, 2019, indicating significant changes in monetary policy that could affect the company's financial condition[155] - The inflation rate in Brazil was reported at 4.3%, 3.8%, and 2.9% for the years 2019, 2018, and 2017 respectively, with a 12-month accumulated inflation of 3.30% as of March 2020, which may lead to increased operational costs for the company[155] Corporate Governance and Compliance - The company is subject to the Brazilian General Data Protection Act (GDPA), which imposes strict regulations on personal data processing, and non-compliance could result in significant penalties[125] - Cybersecurity threats pose risks to the company's operations, as breaches could lead to data loss, reputational damage, and financial exposure[119] - The company’s internal controls may not be sufficient to prevent all violations of applicable laws, potentially leading to penalties and reputational harm[132] Strategic Initiatives - The company aims to take advantage of consolidation opportunities in the Brazilian electricity market, particularly in distribution sectors[198] - The company has implemented a 2020-24 Sustainability Plan focused on sustainable energy, smart solutions, and shared value society[199] - The company plans to optimize operations and gain efficiency through the integration of CPFL Renováveis into its administrative structure[181] Acquisitions and Mergers - State Grid acquired 54.64% of the company's voting capital in January 2017, and after a follow-on offering in June 2019, State Grid's equity interest decreased to 83.71%[173][176] - The company completed a purchase of shares from State Grid for R$4.1 billion, enabling potential synergies with its subsidiaries[178] - The merger of CPFL Jaguariúna and RGE Sul was approved, aiming to improve governance and increase synergy, effective January 1, 2018[180]

Financial Performance - Net operating revenue for the year ended December 31, 2018, was US$7,646 million, an increase from US$7,646 million in 2017[30] - Gross operating income rose to US$1,573 million in 2018, compared to US$1,573 million in 2017, reflecting a growth of approximately 31%[30] - Net income attributable to controlling shareholders increased to US$559 million in 2018, up from US$1,180 million in 2017, marking a growth of 47%[30] - Earnings per share attributable to controlling shareholders were US$0.55 for 2018, compared to US$1.16 in 2017, indicating a decrease of 52%[30] - Dividends declared for 2018 totaled US$133 million, an increase from US$280 million in 2017[30] - The company reported a net financial expense of US$300 million in 2018, down from US$1,488 million in 2017, showing a reduction of 80%[30] - Total taxes for 2018 amounted to US$210 million, compared to US$604 million in 2017, reflecting a decrease of 65%[30] Assets and Liabilities - Total current assets decreased to $2.426 billion in 2018 from $2.509 billion in 2015, representing a decline of approximately 19.5%[34] - Total liabilities increased to $10.893 billion in 2018 from $10.532 billion in 2015, reflecting an increase of about 3.4%[34] - Long-term debt rose to $4.391 billion in 2018 from $3.641 billion in 2015, an increase of approximately 20.6%[34] - Cash and cash equivalents decreased to $488 million in 2018 from $5.683 billion in 2015, a significant decline of approximately 91.4%[34] Regulatory and Compliance Risks - The company is subject to regulatory risks that could adversely affect financial performance, particularly regarding tariff adjustments and compliance with ANEEL regulations[41] - The company is currently in compliance with all material terms of its concession agreements, but there is a risk of penalties from ANEEL for potential breaches, which could adversely affect financial condition and operational results[58] - Fines for breaches can be up to 2.0% of revenues generated by the relevant concession in the prior 12 months, or 2.0% of the estimated value of energy that would have been produced[60] - Distribution concessions were originally granted in 1999 for a 16-year term and have been extended to July 2045 under new regulations, which may impose new targets and standards[61] Energy Production and Consumption - Energy sold to final consumers totaled 53,091 GWh in 2018, slightly down from 53,376 GWh in 2017, indicating a decrease of 0.5%[37] - The number of total consumers reached 9.58 million in 2018, up from 9.375 million in 2017, marking an increase of approximately 2.2%[37] - Installed capacity remained stable at 3,272 MW in 2018, compared to 3,284 MW in 2017[37] - The company generated 10,648 GWh of energy in 2018, a decrease from 12,568 GWh in 2016, representing a decline of approximately 15.3%[37] Investment and Capital Expenditures - The company plans to invest R$1,028 million in Generation activities, R$10,094 million in Distribution activities, R$175 million in commercialization and services, and R$642 million in Transmission activities from 2019 to 2023[79] - Total budgeted capital expenditures are R$2,174 million for 2019 and R$2,565 million for 2020, with R$4,012 million allocated to Distribution, R$203 million to Renewable Generation, and R$25 million to Conventional Generation[81] - The company has made substantial capital investments of R$1,825 million in renewable energy generation businesses over the last three fiscal years, focusing on wind and biomass generation[83] Economic and Market Conditions - The Brazilian economy is projected to grow at a rate of approximately 2.5% in 2019, up from 1.1% in 2018[114] - Inflation rates in Brazil were recorded at 3.8%, 2.9%, and 6.3% for the years 2018, 2017, and 2016 respectively, with a 12-month accumulated inflation of 3.89% as of February 2019[122] - The SELIC interest rate fluctuated between 6.50% and 14.25% from 2009 to March 2019, indicating significant monetary policy changes[121] - Political instability and corruption investigations have negatively impacted market confidence in Brazil, affecting economic conditions[115] Consumer and Tariff Information - The average retail price for residential consumers in 2018 was R$639.65/MWh, an increase from R$572.79/MWh in 2017, representing an 11.7% increase[202] - The average retail price for industrial consumers in 2018 was R$581.90/MWh, up from R$554.80/MWh in 2017, indicating a 4.9% increase[202] - Total tariff revenues for the use of the network by Free Consumers and Captive Consumers amounted to R$13,843 million in 2018[207] - The average tariff for network use was R$131.10/MWh in 2018, compared to R$105.73/MWh in 2017, reflecting a 24.1% increase[207] Operational Performance - The average duration of outages (SAIDI) for CPFL Santa Cruz was 6.01 hours per consumer in 2018, showing improvement from previous years[174] - The company aims to improve the quality and reliability of power supply, evidenced by favorable comparisons in outage frequency and duration against other Brazilian distributors[180] - In 2018, the company conducted 581,000 fraud inspections, recovering approximately R$65.2 million from consumers due to retroactive billing related to losses[173] Mergers and Acquisitions - The acquisition of RGE Sul for R$1,592 million was completed on October 31, 2016, resulting in a net cash outflow of R$1,497 million after accounting for cash acquired[142] - The merger of CPFL Jaguariúna and RGE Sul was approved on December 15, 2017, aimed at improving governance and increasing synergy within the company[142] - The company merged RGE into RGE Sul effective January 1, 2019, consolidating its distribution operations[203]