ELPC Companhia Paranaense de Energia COPEL

Summary

1. Consolidated Results

The following analyses refer to the fourth quarter of 2024 and the year-to-date, compared to the same period in 2023.

1.1 EBITDA

Copel's adjusted EBITDA^[1] was R$1,256.1 million in 4Q24, reflecting another quarter of consistency in deliveries and discipline in capital allocation. Copel Geração e Transmissão (Copel GeT) and Copel Comercialização (Copel Com) accounted for approximately 47.6% of this result, while Copel Distribuição (Copel Dis) accounted for 56.9%.^[2]

The following stand out in this quarter:

In the year-on-year comparison, consolidated EBITDA in 4Q24 was 12.9% lower than the R$ 1,442.4 million in 4Q23, mainly reflecting the following: (i) the lower average price of energy sold in Copel GeT's portfolio (R$ 178.72 compared to R$ 206.63 in 2023, a reduction of 13.5%); (ii) the generation deviation of R$ 93.4 million (+49%), caused by the lower performance of the wind complexes, essentially, by the volume of wind below the certification, curtailment of 13.1% in 4Q24 (compared to 8.3% in 4Q23) and unavailability of the generation complex due to maintenance and installations; (iii) the higher volume from the distributed micro and minigeneration compensation system (MMGD) of R$ 180.1 million and (iv) the increase in litigation provisions in the amount of R$63.6 million, especially in civil lawsuits.

^[1] Excluding non-recurring items, new replacement value (VNR) by the adjustment to present value of Copel Distribuição's indemnifiable assets, and IFRS effects on assets of transmission contracts.

^[2] Holding, Copel Serviços and Elejor accounted for -4.5% of adjusted EBITDA.

These amounts were partially offset, in addition to the highlights, by: (i) an increase of R$ 195.8 million in electricity grid availability; and (ii) the reduction in expected credit losses in the amount of R$ 35.8 million due to improvements in collection actions.

Adjusted Consolidated EBITDA

The non-recurring items considered for the calculation of adjusted EBITDA are shown in the following table:

Year-to-date, adjusted EBITDA reached R$5,106.0 million, 6.6% lower than the R$5,464.2 million recorded in 2023, mainly justified by (i) the lower average price of energy sold in Copel GeT's portfolio; (ii) higher volume of energy from MMGD at R$ 600.7 million at Copel Dis; (iii) generation deviation of R$ 251.6 million, caused by the lower performance of the wind complexes, reflecting wind volume below certification, curtailment and unavailability of the generation complex resulting from maintenance and installations in 2024; (iv) partially offset by the resulting increase in revenue from the availability of the power grid of Copel Dis.

1.2 Operating Revenue

Net operating revenue totaled R$ 6,019.2 million in 4Q24, an increase of 8.1% compared to the R$ 5,567.7 million recorded in 4Q23. This result is mainly a reflection of the increase:

These increases were partially offset by:

In 2024, net operating revenue totaled R$22,651.0 million, an increase of 5.5% compared to the R$21,479.5 million recorded in 2023, with emphasis on the following variations: (i) an increase of R$1,045.8 million (+17.4%) in revenue from electricity network availability, mainly due to periodic tariff adjustments in June 2023 and June 2024, as well as the 5.2% increase in the billed wire market, partially offset by the impacts of the tariff review of Copel GeT's transmission concession contracts; (ii) an increase of R$508.8 million (+6.4%) in electricity supply, especially due to periodic tariff adjustments of 17.4% in June 2023 and a reduction of 4.0% as of June 2024 and the increase in the captive market billed by 5.5%; (iii) an increase of R$217.0 million (+9.3%) in construction revenue due to the volume of works under the Copel Dis investment program; partially offset by (iv) a decrease of R$482.2 million (-13.4%) in revenue from electricity supply given the termination of the CCEAR contract for the Salto Caxias HPP with supply from May to September 2023 at a price of R$252.99/MWh and the increase in the generation deviation, caused by the lower performance of the wind complexes, as previously mentioned; and (v) reduction of R$132.9 million (-13.7%) in the item result of sectoral financial assets and liabilities, mainly due to the growth of the billed market and the better adherence of tariff coverage in relation to the realized costs of Parcel A (non-manageable costs).

1.3 Operating Costs and Expenses

In 4Q24, operating costs and expenses totaled R$5,152.3 million, an increase of 15.9% compared to the R$ 4,445.1 million recorded in 4Q23. The following stand out:

Regarding manageable costs, the PMSO reduced R$66.5 million (-8.4%), excluding provisions and reversals, mainly due to the decrease of R$92.5 million (-29.2%) in personnel and managers, due to the reduction of 1,415 employees in the workforce until December 2024, mainly due to the Voluntary Dismissal Program.

This reduction was partially offset by an increase of R$ 33.7 million (+12.6%) in third-party services, due to the increase in expenses with maintenance of the electrical system and customer service, and the increase of R$11.1 million (+10.9%) in other operating costs and expenses, due to higher losses in the deactivation and disposal of assets in the quarter (R$12.3 million).

Neutralizing the effects of provisions related to performance premiums (PPD), profit sharing (PLR), long-term incentives and PDV, there was a reduction of R$72.5 million (-26.2%) in personnel and management costs in the quarterly comparison, an effect of the reduction of 1,415 in the total number of employees in the comparison between the periods, partially offset by the pro rata provision between October and December of the collective bargaining agreement - ACT 2024, with a salary adjustment of the National Consumer Price Index - INPC, of 4.09% considering 12 months until September/2024.

Isolating the effects of the accumulated inflation measured by the INPC of 4.77% (January to December 2024), there is a reduction of 29.5% (or R$ 85.7 million) in personnel compared to 4Q23.

In 2024, total operating costs and expenses reached R$18,868.0 million, 4.3% higher than the R$18,092.6 million recorded in 2023. The main changes were: (i) the increase of R$1,208.7 million in electricity purchased for resale, mainly due to the increase of 53.4% (+R$600.7 million) in the financial compensation of energy from MMGD; (ii) the increase in provisions and reversals in the amount of R$252.9 million resulting from the partial reversal of impairment recorded in 2023 mainly due to the fair value on the divested assets of Copel GeT, and the increase of R$64.6 million in the provision for litigation, mainly civil and labor litigation; (iii) the variation in the cost of construction, reflecting higher investments in the infrastructure of the energy distribution segment, in the amount of R$ 203.2 million; and (iv) the increase of R$ 78.0 million in third-party services, as a result of the higher amounts with maintenance of the electrical system and maintenance of facilities.

These events were partially offset by: (i) a reduction of R$796.5 million in personnel and managers, due to the non-recurring effect of the provision for the POS and the indemnification of the second additional third of vacations, both in 2023, and the reduction in the number of employees; and (ii) the reduction in other operating costs and expenses resulting from it, mainly, the result of the sale of unserviceable assets to the Copel GeT concession, in the amount of R$ 264.4 million.

1.4 Equity in Earnings of Subsidiaries

The equity result of Copel's jointly controlled projects and other affiliates in 4Q24 decreased 11.6% compared to the same period of the previous year (R$55.8 million, compared to R$63.1 million recorded in 4Q23). The decrease is mainly due to the equity in the subsidiaries in the joint transmission of electricity, taking into account, among other events, the effects of the tariff review recorded in 2023 and non-recurring in 2024. Details of the results can be viewed in Annex I.

1.5 Financial Results

The financial result was negative R$376.8 million in 4Q24 compared to negative R$305.7 million recorded in 4Q23, an increase of R$71.1 million, mainly reflecting the following (i) the increase in expenses with monetary variation, exchange rate and debt charges by R$84.8 million (+20.7%) due to the increase in debt and CDI (Copel's main debt index; (ii) the increase in PIS/Pasep and Cofins on interest on equity of R$28.3 million (+92.8%) due to the higher amount of JCP paid by subsidiaries to holding companies in 4Q23; (iii) the increase in monetary variation and adjustment to present value on accounts payable linked to the concession (UBP) in the amount of R$20.4 million (52.3%); and (iv) the increase in the exchange rate variation on the purchase of electricity from Itaipu in the amount of R$ 20.6 million due to the appreciation of the dollar.

These effects were partially offset by: (i) a decrease in monetary adjustment of litigation, in the amount of R$51.7 million (-66.6%) resulting from the accounting reclassification of this cost, in 4Q23, for the item of financial expenses, containing all the effects of the 2023 fiscal year^[3]; (ii) increase in income from financial investments of R$27.5 million (+15.9%), due to higher amounts invested and higher interest rates; and (iii) the late payment increase on the invoice, with an increase of R$ 21.3 million (+48.4%).

In 2024, the financial result improved by R$48.0 million, totaling negative R$1,157.0 million compared to negative R$1,205.0 million in 2023. The result is mainly due to (i) the increase in income from financial investments, of R$197.6 million due to the higher volume of amounts invested; partially offset by (ii) reduction in expenses with monetary variation and adjustment to present value on accounts payable linked to the concession (UBP), in the amount of R$78.3 million; and (iii) the lower remuneration of sectoral financial assets and liabilities in the amount of R$49.4 million.

1.6 Consolidated Net Income

Copel recorded net income of R$ 575.2 million compared to R$ 942.8 million in 4Q23, a reduction of 39%. In addition to the items already mentioned, this decrease is also explained by the result of Compagas and UEGA (discontinued operations) of R$ 323.8 million in 4Q23.

In the year, net income was R$2,799.4 million compared to R$2,327.2 million recorded in 2023, an increase of 20.3%.

^[3] More information can be found in Note 28.1 of our 2023 Financial Statements.

Adjusting for non-recurring effects, adjusted net income increased 7.3% in 4Q24 compared to 4Q23. In addition to the items already mentioned, the effect of the increase of R$21.5 million in depreciation and amortization in the period also influenced the decrease, due to the higher investments made, mainly in Copel Distribuição. The reduction was partially offset by the higher tax benefit generated in 4Q24 due to the distribution of Interest on Equity.

The main adjustments to net income in 4Q24 were:

1.7 Debt

Copel's total consolidated debt in 2024 was R$17,753.8 million, an increase of 18.7% compared to the amount recorded on December 31, 2023, of R$14,962.3 million. The following table and graphs show the indebtedness of Copel and its subsidiaries at the end of 2024.

Debt by Subsidiary

Adjusted Net Debt/Adjusted EBITDA

Debt Indexes

Amortization - R$ million

Average Term: 4.2 years

2. Investments

In 4Q24, the amount realized in the investment program was R$ 679.8 million, 79.9% of which was paid by Copel Distribuição and 19.9% by Copel Geração e Transmissão (Generation and Transmission).

In 2024, R$ 2,503.8 million were invested, 87.7% of which was invested in Copel Distribuição, with 98.9% allocated to electrical assets and 1.1% to investments in non-electrical assets and other investments.

The investments made in the distributor are essentially allocated within the scope of the Paraná Three-Phase, Smart Electric Network and Total Reliability projects, with the objective of modernizing, automating and renewing the distribution network with standardized technologies to serve the automation equipment. Among the benefits of the projects are the reinforcement of rural networks to reduce disconnections and ensure support for the growth of agribusiness in the State of Paraná, reduction of costs with O&M and commercial services and improvement in the control of the indicators of Equivalent Duration of Interruption per Consumer Unit - DEC and Equivalent Frequency of Interruption per Consumer Unit - FEC. The program consists of 3 pillar projects:

The investments made at Copel GeT are mainly aimed at the operation and maintenance of generation assets, corresponding to 30% of the total invested in 2024, and reinforcements and improvements to transmission lines amounting to 47%.

3. Copel Geração e Transmissão

(Consolidated Profit)

Copel GeT posted an adjusted EBITDA^[4] of R$613.2 million, 26.9% lower than the R$838.3 million recorded in 4Q23. This result mainly reflects (i) the lower energy price in Copel GeT's portfolio (R$ 178.72 compared to R$ 206.63 in 2023, a reduction of 13.5%) and (ii) the generation deviation of R$ 93.4 million (+49.1%), caused by the lower performance of the wind complexes, mainly due to the volume of wind below certification, curtailment 13.1% in 4Q24 (compared to 8.3% in 4Q23) and unavailability of the generator complex due to maintenance and installations; (iii) the highest volume of energy purchased for resale in bilateral contracts (273 GWh 4Q24 compared to 151GWh in 4Q23); and (iv) the highest amount of provisions in 4Q24 of R$30.8 million, due to the increase in civil and labor litigation, while in 4Q23 there was a reversal of R$90.8 million, essentially due to the decision on the MCSD calculation methodology.

Item 3.1.1 presents the regulatory accounting of the result for analysis purposes without the IFRS (International Financial Reporting Standards) effect on transmission assets.

^[4] Excluded non-recurring items and IFRS effects on assets from transfer agreements.

Expenses with PMSO (manageable costs), excluding provisions and reversals, decreased by 3.5%, mainly explained by: (i) the reduction in costs with "Personnel and managers" by (-R$ 30.3 million) influenced by the decrease of 386 employees, mainly explained by the Voluntary Dismissal Program (PDV) concluded in 2024.; (ii) lower costs with the acquisition of "Materials" in (-R$ 5.4 million); partially offset by (iii) increase in "Third-party services" (+R$15.3 million), mainly due to higher costs with system and electrical maintenance and specialized services (inspection, cybersecurity, topography, dam emergency action plan (PAE) and vegetation mapping); and (iv) the increase in "Other operating costs and expenses" by R$ 14.3 million, due to the reimbursement of R$ 11.8 million from the energy development account (CDE) recorded in 4Q23.

Neutralizing the effects of the provisions related to PDV, PPD and PLR, there was a reduction of 30.3% in personnel and management costs compared to 4Q23, reflecting the aforementioned reduction in the number of employees between the periods, partially offset by the pro rata provision between October and December of the 2024 Collective Bargaining Agreement, with a salary adjustment of 4.09% (INPC accumulated in 12 months until September 2024).

Isolating the effects of the accumulated inflation measured by the INPC, of 4.77% between (January and December 2024), there was a reduction of 33.5% in Personnel.

Year-to-date, Copel GeT recorded adjusted EBITDA of R$2,624.4 million, a decrease of 16.9% compared to the same period of the previous year, mainly due to (i) the lower average energy price of Copel GeT's portfolio in the year, mainly due to the termination of the CCEAR Salto Caxias HPP contract in September 2023, whose average price was R$ 252.99/MWh; (ii) the largest generation deviation in wind complexes at R$138.8 million; partially offset by (iii) lower expenditure on electricity purchased for resale of R$ 31.8 million; and (iv) by the reduction in personnel costs, as a result of the decrease of 386 employees in the workforce.

Net income from continuing operations stood at R$1,325.3 million in 2024, a reduction of 18.9% compared to 2023. This result mainly reflects (i) lower EBITDA, due to the points presented above; (ii) higher expenditure on Income Tax and Social Contribution, due to the reduction in the payment of Interest on Equity (JCP) compared to the reduction in the result in 2024; offset by (ii) the better financial result (-R$606.5 million in 2024, compared to -R$747.4 million in 2023), explained by the higher income from financial investments and lower financial expenses with debt charges.

3.1.1 IFRS Effect on the Transmission Segment

For the calculation, the adjustment was made considering the effects of the application of ICPC 01 / IFRIC 12 on the corporate statements in the transmission segment.

Present in 10 states, Copel Geração e Transmissão operates a diversified park of hydroelectric and wind power plants, totaling 6,553.9 MW of installed power and
2,886.8 MW average of physical guarantee. In the Transmission segment, Copel has a total network of 9,684 km of transmission line and 53 basic network substations, considering the shares.

For more information on operational data on generation and transmission, see Annex IV.

3.2.1 Generation

Copel's generating complex is composed of 100% renewable sources in operation.

The power generation of Copel Geração e Transmissão S.A. and its wind farms in the quarter was lower than in the same period last year, reaching 6,864 GWh compared to 8,087 GWh in 4Q23. In 2024, generation was 27,363 GWh compared to 25,698 GWh in 2023.

3.2.2 Energy sold

In the 4th quarter of 2024, Copel Geração e Transmissão recorded 3,761 GWh of electricity sold by hydro sources, a reduction of 8.1%, mainly due to lower short-term sales (MCP). The energy sold does not consider the generation allocated in the Energy Reallocation Mechanism (MRE), which decreased in the quarter (2,289 GWh compared to 3,054 GWh in 4Q23).

For wind farms, the total electricity sold was 1,241 GWh, a reduction of 7.0%, mainly due to the reduction in sales in bilateral contracts, partially offset by the energy sold in the regulated environment (CCEARs) due to the start of supply from the Vilas Wind Complex^[5].

7

^[5] Vila Ceará I, Vila Maranhão I, Vila Maranhão II and Vila Maranhão III Wind Farms (28°LEN - CCEAR 2024 - 2053).

GSF and PLD

3.2.3 Transmission

Copel has more than 9.6 thousand km of transmission lines in eight Brazilian states, considering its own assets and in partnership with other companies. In addition to building, maintaining and operating its own extensive energy transmission network, Copel provides services to projects of other concessionaires. The Transmission projects are listed in Annex IV, including the projects of Copel Geração e Transmissão, SPEs Costa Oeste, Marumbi and Uirapuru Transmissora (100% Copel GeT), as well as the 7 SPEs in which Copel Geração e Transmissão has a stake.

RBSE

Below we describe the flow of receipt of the portion of the Revenue related to the Basic Network of the Existing System – RBSE^[6] for the next cycles. It is important to note that they may be changed in the future, as a result of the tariff review processes and/or review of parameters used for the composition of these revenues by the regulatory body. The values below underwent periodic tariff review, according to ratifying resolution No. 3,344/2024, and annual adjustment by the IPCA according to ratifying resolution 3,348/2024.

^[6] It refers to concession contract 060/2001, which represents 41.6% of the permitted annual revenue (RAP) from transmission of Copel Geração e Transmissão and proportional of the participations.

Copel Distribuição posted adjusted EBITDA of R$ 715.2 million in 4Q24, a growth of 23.6%, basically due to i) the 2.5% growth in the billed grid market, ii) the tariff adjustment in June 2024, with an average increase of 2.7% in the Tariffs for the Use of the Distribution System (TUSD), iii) the 36.0% decrease in expenses with personnel and administrators as a result, mainly, the reduction of 1,004 employees, mostly related to the PDV completed in 2024. These effects were partially offset by the costs of energy purchased for resale due tothe higher volume coming from the MMGD compensation system.

Year-to-date, adjusted EBITDA reached R$2,505.4 million, a growth of 22.2% compared to 2023, with emphasis on i) the 5.2% increase in the billed wire market, ii) the cumulative effect of the June/23 tariff adjustments of 6.3% and June/24 of 2.7% in TUSD, iii) 9.2% reduction in personnel and management costs mainly related to the conclusion of the POS in August 2024, already disregarding the effects of the provisions for PDV and compensation of the third of vacation made in 2023. The result was partially offset by the increase of R$180.1 million (+52.0%) from the higher volume of the MMGD compensation system.

Expenses with PMSO, except provisions and reversals, decreased by R$63.1 million (-13.6%) compared to 4Q23, due to the effect of the reduction, mainly, i) of R$68.9 million (-36.0%) in the cost of personnel and administrators due to the PDV concluded in August 2024, ii) of R$8.1 million (-31.6%) of expenses with materials, basically electrical systems, security equipment, and transportation and iii) R$7.2 million (-24.2%) in other costs and expenses, as a result, essentially, of the reduction of R$11.6 million in losses on decommissioning and increase in gains on the sale of assets and rights, with a total variation of R$22.6 million, and the reduction of R$9.2 million in costs with the collection of invoices. These effects were partially offset by the increase of R$23.7 million (+13.4%) in the costs of third-party service for maintenance of the electrical system, mainly with right-of-way cleaning and tree pruning, customer service, and data processing and transmission.

Excluding the effects of the provisions of the PDV, PPD and PLR, the personnel costs line decreased 29.3%, reflecting the aforementioned reduction in the number of employees between the periods, partially offset by the pro rata provision between October and December of the 2024 Collective Bargaining Agreement, ratified in 2025 with a salary adjustment of 4.09% (INPC accumulated 12 months until September 2024). Isolating the effects of the accumulated inflation measured by the INPC, of 4.77% between (January and December 2024), there was a reduction of 32.5% with personnel and administrators.

Copel Distribuição's reported net income in 4Q24 was R$440.4 million (compared to R$263.3 million in 4Q23), positively impacted by the performance highlighted above, by the increase of R$32.9 million (+28.5%) in financial revenues, mainly due to the higher volume of amounts invested, and the lower expenditure on Income Tax and Social Contribution, due to the increase of R$ 307.8 million in the payment of Interest on Equity (JCP) to the Holding. Partially offset by the increase of R$33.1 million (12.8%) in financial expenses and an increase of R$22.5 million (+16.6%) in depreciation and amortization, as an effect of the investments made.

Year-to-date, net income was R$1,134.0 million, compared to R$569.1 million in 2023, reflecting the POS provision and additional one-third of vacations in 2023 and the improvement in operating performance in 2024.

The following are the main indicators of Copel Distribuição:

In 4Q24, the following also stand out:

4.1.1 Regulatory Efficiency

Copel Distribuição recorded adjusted EBITDA of R$ 2,587.8 million in the last 12 months, plus VNR, equivalent to an efficiency of R$ 812.2 million, 45.7% above the regulatory EBITDA.

4.2 Operational Performance

4.2.1 Grid Market (TUSD)

Copel Distribuição's grid market, composed of the captive market, the supply to concessionaires and permittees within the State of Paraná and all free consumers in its concession area, had an increase of 4.7% in electricity consumption in 4Q24 compared to the same period of the previous year and 7.3% in the year to date, mainly due to the increase in economic activity and the higher consumption pattern of the customer base in 2024. The billed wire market, which considers the compensated energy of Mini and Micro Distributed Generation – MMGD, increased 2.5% in 4Q24 and 5.2% in the year.

4.2.2 Captive Market

The captive market showed a decrease of 0.9% in electricity consumption in 4Q24 compared to the same period of the previous year and an increase of 5.5% in the year. The billed captive market, which considers MMGD offset energy, decreased by 5.3% in 4Q24 and increased by 1.8% year-to-date.

4.2.3 Operational Data

Copel Distribuição has a concession in force until July 7, 2045, whose criteria for quality of service provision (Equivalent Duration of Interruption per Consumer Unit – DEC and Equivalent Frequency of Interruption per Consumer Unit – FEC) are defined by ANEEL.

Despite the severe weather events in the State of Paraná that have occurred in recent months, the Company has acted in a timely manner to reestablish the energy supply and prevent vegetation in the network, which contributed to maintaining the quality indices in the provision of the service within the regulatory limits.

For the DEC, the result for the last 12 months calculated in December 2024 was 7.92 hours, while for the FEC, the result in the same period was 5.36 interruptions, both within the established regulatory limit.

Losses - Distribution losses can be defined as the difference between the electricity purchased by distributors and that billed to their consumers, being segmented as Technical and Non-Technical. Technical Losses are inherent to the activity of electricity distribution and Non-Technical Losses originate mainly from theft (clandestine connection, direct deviation from the grid), fraud (tampering with the meter or deviations), reading, measurement and billing errors.

At the end of 2024, Technical Losses in the last 12 months were 2,282 GWh, compared to 2,120 GWh in the same period of the previous year, and Non-Technical Losses were 862 GWh, compared to 742 GWh in the same period of the previous year. Total losses in the last 12 months totaled 3,144 GWh.

* Losses reflect the difference between the metered load and the billed market. In 2020, with the beginning of the Covid-19 pandemic, the load suffered a rapid retraction and the market did not respond at the same speed, due to the mismatch between the measurement calendar and the consumer billing calendar, reducing the volume of losses in this period.

Non-technical losses, calculated by the difference between total losses and technical losses, are largely associated with the management of the concessionaire and the socioeconomic characteristics of the concession areas. In this sense, Copel maintains a Program to Combat Non-Technical Losses through the following actions:

The tariff transfer of efficient levels of losses is provided for in the concession contracts and these losses are included in the costs of purchasing energy up to the regulatory limit stipulated by ANEEL. Copel Distribuição remained within the regulatory limits in the last tariff processes and in 2024, total losses were 0.5 pp above the regulatory limit influenced by the significant increase in energy injected, notably in low voltage consumption.

Copel Comercialização posted negative adjusted EBITDA of R$15.3 million in 4Q24 compared to a positive value of R$9.7 million in 4Q23, mainly reflecting the lower trading margin due to the volatility of the hourly PLD, especially at the beginning of the period, and the price variation between submarkets, especially caused by generation from intermittent sources. with an impact of approximately R$ 18.0 million.

The main adjustment in the quarter was the fair value of the power purchase and sale agreements (mark-to-market) - an amount calculated by the difference between the contracted price and the future market price estimated by the Company - which was negative by R$ 10.6 million in 4Q24 compared to the positive value of R$ 11.4 million in 4Q23, mainly influenced by the calculation of fair value that was impacted by the increase in the NTN-B discount rate.

Manageable costs, except provisions and reversals, decreased by 23.3% in 4Q24, mainly influenced by i) the reduction of R$1.3 million (-41.3%) in other costs and expenses due to lower costs with lease, rents and insurance, ii) the decrease in third-party services, mainly with data processing and transmission, and iii) the reduction in personnel due to the POS provision in 4Q23.

The personal and management accounts, excluding the effects of POS, PLR and PPD, increased by 17.9% in 4Q24, mainly due to the restructuring process of the trading company.

Copel Comercialização posted a net loss of R$ 3.1 million in 4Q24, mainly due to the items already mentioned. Year-to-date, net income was R$44.1 million, 58.2% lower than in 2023, due to the lower trading margin, and the negative variation of R$41.6 million in mark-to-market registration.

5.2 Operational Performance

In 2024, Copel Comercialização concentrated the negotiations of new energy sales contracts in the second half of the year, seeking to capture better prices by taking advantage of the biggest opportunities of the year.

Energy sold increased by 0.1% in 2024, due to the effect of the increase in sales to traders in bilateral contracts (+13.8%). The chart shows the evolution of Copel Comercialização in terms of the amount of GWh sold, where it shows a growth of 80.5% in the last 4 years.

Copel was the 1st company in the sector to produce an Environmental Impact Report for a generation project, and the 1st company in the energy sector in Brazil to become a signatory to the UN Global Compact in 2000. The Company promotes actions for the dissemination of the UN 2030 Agenda and the implementation of the SDGs in the electricity sector. Copel joined the Pact for Water and Energy Resilience Commitment and received the Pro-Gender and Race Equity Seal from the Federal Government. The Company received the Pro-Ethics Seal, 2018-2019 and 2020-2021 editions, granted by CGU and ETHOS Institute, for the voluntary adoption of integrity measures, with public recognition for its commitment to implementing measures aimed at the prevention, detection and remediation of acts of corruption and fraud. Copel participates in the 100% Transparency Movement of the UN Global Compact, the first and largest initiative to promote corporate transparency in Brazil.

Environmental

Social

Governance

Priority SDGs of the Brazilian Electricity Sector

6.2 Recent Highlights

Copel dedicated the month of November to promoting sustainability and disseminating good environmental, social and governance (ESG) practices, not only in the corporate environment, but also in individual conduct. The extensive program began with the launch of the first edition of Copel's Sustainability Course on October 29. From November 11 to 14, the first edition of the Integrated ESG Week took place, which brought an agenda full of events that fostered the culture of sustainable development. The program included the "Detachment Room", a temporary space for the exchange of items that promoted conscious consumption. Another initiative launched was the Sustainable Route Challenge, which challenges participants to rethink the way they travel, changing their usual means of transport or fuel for more sustainable options. On the 12th, the Sustainability Trail was launched, which offers content that reinforces the commitment to ethical and sustainable practices, in addition to the lecture "Culture for Diversity" given by Álvaro Mello, a Gartner specialist. The last day of the ESG Integrated Week was marked by the Purpose Stage event, which featured the lecture "ESG and Purpose", presented by Yazmín Trejos, and a debate on energy transition, with the participation of the Coordinator of the Sustainable Development Committee (CDS) and Copel's business experts. Finally, the Human Rights Course – 2024 edition was launched, aimed at deepening crucial topics for the promotion of a culture of respect, inclusion and social responsibility.

6.3 Indicators

Regarding the scope 1 GHG (tCO2) indicator, the data refer to direct greenhouse gas emissions from Copel's operations (thermal plant, fleet, soil change and fugitive emissions) - data from 2024 will be verified later by a third party. GHG emissions are calculated every six months.

6.4 Ratings, Classifications, and Indexes

Index		Ranking	Reference Year
		Rank 15th 4th in SEB	2023
		CSA Score 70	2024
		The-	2023
		Yes	2024
		Medium Risk	2023
		The	2024

Available Cash Flow and Dividends

Available Cash Flow is defined in the Dividend Policy as: DCF = Cash generated by Operating activities, less net cash used by investing activities, as follows: (a) Cash Generated by Operating Activities: cash generated by operating activities in the fiscal year, before taxes, contributions (IRCS) and financial charges; (b) Net cash used by Investing activities: amount invested in the fiscal year in non-current assets. The Table below demonstrates the calculation of the DCF as of December 31, 2024:

R$ thousand

The Company declared and paid R$ 1,085.1 million for the 2024 fiscal year. In line with the Dividend Policy, the Board of Directors proposes extraordinary dividends in the amount of R$ 1,250.0 million for deliberation at the Annual General Meeting – AGM on 04/24/2025, with payment expected by June 2025.

Renewal of the Foz do Areia (FDA), Segredo and Salto Caxias Concessions

On November 18, 2024, Copel GeT renewed for another thirty (30) years the electricity generation concessions of the Governador Bento Munhoz da Rocha Netto ("Foz do Areia"), Governador Ney Aminthas de Barros Braga ("Segredo") and Governador José Richa ("Salto Caxias") Hydroelectric Power Plants, whose joint grant of approximately R$ 4.1 billion was paid in the same month. The plants add up to 4,176.0 MW of installed capacity and 1,673.7 MWm of physical guarantee.

For more information, see the Notice to the Market 32/24.

1st Share Buyback Program

The Company launched the first share buyback program on November 25, 2024 with the objective of acquiring Copel's Class B common and preferred shares for treasury maintenance, cancellation or disposal, and compliance with the Restricted Shares and Performance Shares plan), without reducing the figure of the share capital. The program is valid for 18 months with a limitation on the acquisition of up to 10% of the total number of common shares and PNBs in circulation in the market. To date, the Company has acquired R$120.0 million of shares, of which R$50.0 million executed in December 2024 and R$70.0 million in January 2025. This initiative, along with the other deliveries made in the year, demonstrates the company's commitment to discipline in capital allocation and long-term value creation.

For more information, see Material Fact 09/24.

Divestment of Small Assets

On November 25, 2024, Copel Geração e Transmissão celebrated the divestment of its entire stake related to Copel's divestment in 13 small generation assets, totaling 118.7 MW of installed capacity. The total amount to be received for the divestment will be R$ 450.5 million, to be corrected by the variation of the IPCA from March 31, 2025 until the date of closing. The divestment will improve operational efficiency for Copel GeT's portfolio and optimize the Company's capital allocation, considering that Copel's strategy focuses on larger assets. Additionally, it will enable the reuse of professionals in more relevant assets, who are already properly trained and qualified. In January 2025, the Administrative Council for Economic Defense (CADE) approved the transaction, with ANEEL's consent to carry out the closing.

For more information, see Material Fact 10/24.

Copel Day 2024

The Company held the Investor Day at its headquarters in Curitiba-PR, on November 26, 2024, and was attended in person by more than 70 analysts, investors and stakeholders and more than 400 spectators who watched the live broadcast. Face-to-face participants had the opportunity to explore the Expo Room, where the main technologies used in hydro and wind generation, transmission and distribution operations were presented, consolidating the path of energy to the customer. The experience highlighted the operational excellence driven by the investments made. The event addressed, among other topics, the strategic pillars, the structuring efficiency plan and the planning of the PMSO, the path to operational excellence and the future of expansion of the Company, always seeking to become a reference in the electricity sector in value creation, efficiency, quality and discipline in capital allocation. For more information, access the broadcast of the event and the presentation available on our website.

Decrossing of Assets with Consolidation of Mata de Santa Geneva and Mauá HPP

On December 12, 2024, the Company carried out the uncrossing of assets of Centrais Elétricas Brasileiras S.A. – Eletrobras, in which Copel GeT will receive (i) the entirety of Eletrobras' 49% interest in the Mauá Hydroelectric Power Plant ("Mauá") and (ii) the entirety of Eletrobras' 49.9% in the transmission company Mata de Santa Geneva S.A. ("MSG"), Copel GeT will now hold 100% of the respective assets and fully consolidate them in its balance sheet, and (iii) will transfer to Eletrobras the Colíder Hydroelectric Power Plant ("Colíder") (100% Copel GeT), with payment of R$ 365.0 million to Eletrobras in cash at the closing of the Transaction, subject to the usual market price adjustment mechanisms. In January 2025, the Administrative Council for Economic Defense (CADE) approved the transaction, with ANEEL's consent to carry out the closing.

The transaction in question will bring immediate benefits to Copel, generating synergy gains by simplifying the operational and administrative structure, which until then was shared.

For more information, see Material Fact 12/24.

New General Director for Copel Geração e Transmissão

Mechanical engineer Mr. Fernando Mano was sworn in as General Director of Copel Geração e Transmissão on January 6, 2025. Graduated from the Technological Institute of Aeronautics - ITA, with a specialization in Advanced Finance from Fundação Getúlio Vargas - FGV and an MBA in Strategic Innovation from HSM Educação, he has deep experience in strategy, innovation and energy planning, having worked in several companies in the electricity sector. Under the leadership of Mr. Fernando Mano, Copel GeT will strengthen the efficiency of the power generation and transmission business, valuing sustainability and operational excellence.

For more information, see Notice to the Market 01/25.

Copel Launches the 2024/2025 Voluntary Dismissal Program - PDV

On February 19, 2025, as provided for in the Collective Bargaining Agreement (ACT), the Company launched the 2024/2025 Voluntary Dismissal Program. The resulting dismissals are limited to the approved total of 100 employees and the classification process will occur in descending order of the sum of age and length of service. The employee with effective adhesion to the PDV will receive the equivalent of 12 monthly remunerations as compensation for the termination of the employment contract, as well as the benefits defined in the ACT.

Divestment in the Baixo Iguaçu HPP

On February 21, 2025, the Company announced the divestment of the Baixo Iguaçu HPP with an equity value of R$ 570.0 million related to a 30% interest in the asset. The transaction constituted 1) the exercise of the preemptive right to acquire all the shares of Geração Céu Azul S.A. ("Céu Azul"), belonging to Neoenergia S.A. ("Neoenergia"), holder of 70% of the Baixo Iguaçu Entrepreneurial Consortium ("CEBI"), for the equity value of R$ 984 million, whose acquisition commitment was contracted by adhesion to the Share Purchase and Sale Agreement and Other Covenants that had already been negotiated between Neoenergia and the original potential buyer of this participation; 2) after the exercise of the Preemptive Right, Copel GeT entered into a Share Purchase and Sale Agreement and Other Covenants with DK Holding Investments, S.R.O., through which Copel GeT undertook to sell to the Buyer: (i) the entire shareholding interest in Céu Azul, which it will hold at the closing of the transaction provided for in the CCVA between Copel GeT and Geração Céu Azul S.A. and (ii) its minority interest of 30% in CEBI, for the equity value of R$ 570 million, so that the Buyer will become the indirect owner of 100% of the Baixo Iguaçu HPP. The transaction totals, in equity value, the amount of R$ 1,554 million. Copel GeT received a cash deposit equivalent to 10% of the total value of this equity value, and the remaining balance must be paid by the buyer by the closing date, with the usual adjustments for this type of transaction. The transaction is subject to the fulfillment of certain conditions precedent usual to this type of operation.

The Company continuously seeks to enhance its portfolio and periodically evaluates opportunities to recycle assets and minority interests. The operation in question explores a business opportunity that generates value for Copel and optimizes its operational and administrative structure.

For more information, see Material Fact 01/25.