Auren Energia (AURE3) Investor presentation summary

Market position and portfolio

• 3rd largest power generator in Brazil with 8.7 GW installed capacity, 100% renewable assets, and a leading energy trading platform serving over 4,000 clients across all market segments.

• Portfolio is diversified across hydro, wind, and solar, minimizing submarket risk and capturing modulation gains, with 57% wind, 37% hydro, and 6% solar in assured energy.

• Minimal exposure to submarket risk and strong operational resilience, with high asset availability and generation in line with certification levels despite high curtailment in 2025.

Financial performance and capital allocation

• 2025 net revenue reached R$13.2 billion and adjusted EBITDA R$4.0 billion, with a 32% CAGR in EBITDA since 2019.

• Strong dividend distribution track record, with R$3.0 billion distributed in 2024 and R$850 million in 2025.

• Disciplined capital allocation demonstrated by successful integrations (CESP, AES Brasil), synergy capture above targets, and a proven turnaround strategy.

• Competitive cost of debt, well-distributed maturity profile, and accelerated deleveraging expected from 2027, targeting 3.0–3.5x leverage by 2028.

Regulatory and market environment

• Structural oversupply in the electricity market is expected to fall below 20% from 2029, with rising marginal costs of expansion and increased price volatility due to higher shares of intermittent renewables.

• Medium- and long-term energy prices have increased but remain below the marginal cost of expansion, positioning uncontracted portfolios to benefit from future price rises.

• Regulatory changes (Law 15,269/2025, Public Consultation 210) are advancing compensation for curtailment and reliability risks, reducing sector uncertainty.