Please note that this video conference is being recorded and will be made available on the company's investor relations website, ri.sanepar.com.br, where the full earnings release and presentation materials is accessible. You can download the presentation directly from the chat available in English. During the presentation all participants will have their microphones muted. The Q&A session will follow the presentation. To ask questions, click the Q&A icon at the bottom of your screen and type in your question into the queue. Once your name is called, a prompt will appear to activate your microphone, allowing you to ask questions. We recommend submitting all the questions at once for efficiency. If your question is not addressed during the event, please feel free to email it to ri.sanepar.com.br. Please be aware that the information provided during this presentation, including any forward-looking statements regarding SaniPAR's business outlook, projections and financial targets, reflect management's current beliefs and assumptions, as well as information available at the time. These statements are subject to risks, uncertainties and changes in circumstances that could cause actual results to differ materially. Investors should consider general economic conditions, market factors and other variables that could impact the company's performance and cause actual results to differ from those expressed in forward-looking statements. So now I will hand it over to our Chief Financial and Investor Relations Officer, Osiris Costner. Thank you. Good morning, everyone participating in this conference. I would like to join with us. We have our CEO, Wilson Blay, the Leora Investment Director, and our Environment and Action So our accounting manager is also with us today, the RI manager, Ricardo, with all his team. Before starting the presentation, I would like to hand it over to our president. Good morning, everyone. I would like to greet my board and thank them for all their and I'd like to greet all our shareholders and show the importance of their participation in this event. I'd like to say that the company continues in a healthy financial condition. We can fulfill our targets, whether contracts or legal. It's an accelerated race to reach universalization access in water entry and sewage before the legal deadlines, bringing comfort to our contracts. We were renovated until 2042, guaranteeing comfort in the second quarter. is within what was predicted with an extraordinary factor which Osiris will address but if you but without this extraordinary factor we can see an increase both in revenues and and also build revenue and new connections whether water or sewage and this shows that the company continues to serve the society bringing revenues dividends to be able to make the necessary investments to continue all this operation which is not so simple but this complexity brings challenges and we are fulfilling these challenges and the other reservoirs are within a normal level of volume so that it guarantees That in the next few months, we have a good volume. Of course, with El Nino, all the resilience of the company is being planned and with a strong resilience plan for us to be able to face all the challenges with with no without any problems in the supply of water and investments when speaking of investments last year we had record investments and this year as you will see in our in our figures our numbers we are reaching our targets within our Investment Planned. So I would like to assure everyone the company is doing very well but we had to we had all this problem of the precatorios and I want to say that the company will always Thank you very much. Every effort necessary to reach this result which is the result not only expected by the company but that we believe that it's our right so I'd like to assure you that we have taken all the measures and if necessary we will take other measures until we receive a final decision and that which is in our favor because we believe it's our right. So I thank all of you and wish you a good day and good work to all of us. I can't hear. So, the reservoir volumes. Sorry, but the sound is not audible. Okay, at the end of June, we had 83%. Today, we have 88%. And the water is around 20% of the reservoir. In June, it was 13%. In the next slide, we will highlight the issue of the history of the delivery of service. We are universalized in water, 100%. In sewage, we reached 82.9%, highlighting that 100% of this sewage is treated, this wastewater is treated. In the next slide, we can see the operational results, which was very good. If we both the quarter and the six months, we have grown in quarter in the measured volume in water, we increased 5.4% and in the six months, 3.3%. In built volume in the quarter, So an increase of 5% and for six months the increase was 3.1%. In connection numbers, new connections that happened within the period of six months in water was 24,643 connections and an increase of 0.7%. And an increase also in new economies of 4,443. An increase of 0.7% with 32,668 new units. We have the history of connections. We have 3,555,000 new connections in the last 12 months, an increase of 48,923 connections. In the history of units, we closed June with And in the last 12 months, 68,1616 units. In the next slide, if we look at the sewage, there was an increase, a significant increase. The build volume in the quarter increased 5.9%. And in the period of six months, 4%. So the number of connections has also been quite significant. 1.3% closing in almost 35,000 connections. The units increased 1.4% with an increase of 5,560 units. And on the right side, we can see the history of the connections. The total connections today is 2 million. and the history of the economic units in closing in June with 3,636,000 economic units and an increase of 109,000 units in the last 12 months. Now moving to the indicators, financial indicators. So we can feel here an impact of the recognition of the 25% of the regulatory liability. So our EBITDA margin in the quarter closed in 28.4%. In the accumulated of six months, 36%. And then we will show you later on, there is a slide that will show you What would be the adjusted if we discounting, not counting the precatorio, the liquid, the net margin, we had a negative result both in the quarter and in the accumulated. We had negative margins in the quarter in minus 26.6 and accumulated less for 4%. ROIC and ROIC annualized, ROIC closing 3.7% and ROIC 4.7%. Some good news, the delinquency closed in 1.9%, so in line with our Our strategic planning even a little below what we anticipated losses per connection it's an indicator that is quite positive in this quarter we closed with an indicator 216 liters of connections per day is one of the lowest In the past quarters and years so if we look at June 2025 we had 223 liters and in 2024 we had 220 liters per day. So here, the quarter result statement, if we look at net revenue, was very positive, increased 11.5%. The costs with personnel saw an increase of 7%. We have the effect of the collective agreement, which was in March this year with INPC readjustment of 36%. We have an effect of the new hirings, the new employees that join our company in the accumulated. I will see the effect of the voluntary severance program, which is seeing positive results. And then in material, we had A small decrease. Electricity, we had an increase. The issue of energy, besides the volumes produced that increased, and also the treated wastewater, we also saw One of the suppliers of the free market, one of the companies is in judicial recuperation, so Sanepar had to look for an emergency contractor at a price a little higher than the free market prices, but this is being addressed. We were looking for a solution. Looking at the third party services, this is a line that had an increase in the quarter, especially They are driven by the third-party services and we have the micro regions that started operating their PPPs last year, so this year the cost is higher. Now moving to the next slide and we We can analyze the results more in depth. We can see the net revenue of June 2025 and also showing the progress, how we reached this accumulated revenue in June 2026. So we had an increase in In Economist, in the graph, amount 36 million, it represents an increase in volume, 53 million reais. Readjustment in tariff that we had, it brings an impact. We had, if we look at the readjustment in March, we had IRT, which That was approved. So this brought us an increase of 100 million and other revenue, 7 million, it closing in almost 2 billion. Out of this revenue, we have the costs and expenses, personnel, material, energy, provisions. It was positive. It was a lower amount than last year and the highlight of the regulatory liability so it's highlighted that only in a beach that impacted 260 million and down there if you look at this The financial expenses, we segregated. We can see the regulatory liability, 693 million. With that, we had this loss in the court of 505 million. But if we look Later, we made a composition excluding this effect of the Precatorius, we had an Ibista of 800 million. which is like a non-recurrent and a profit of 447 million if we exclude the effect of the court-ordered debt payment. So our IBISTA margin would be adjusted in 41% and the net margin would be Peralta de Souza, Maria Alicia Lima Peralta de Souza, Maria Alicia Lima 7.4 percent last year was over a billion reais and the first quarter of last year there was the program of voluntary surveillance program so five over 500 employees left and this cost to the company So even with the hirings that we are making, we are paying less salary, so we are seeing a reduction in the cost compared to the accumulated last semester. Now I will break down the The same thing I did in the quarter. If I look at the net revenue in the six months last year, it had closed in 3.5 billions. So we had an increase in economies that brought a 74 million revenue, an increase in volume. Build volume 44 million, readjustment and consumption which can be migration of levels of consumption it brought us 250 million and other revenues 4 million so we close in 3.8 billions in revenue six months. EBITDA? Closing 3.8 billions, no, sorry, the revenue. So we would have, the IBICTA would be practically 1.4 billion. So if highlighting both in line of IBICTA, the regulatory liability And if we see the regulatory liability, it impacted 843 million. So the profit reported, the loss in the six months was 152 million. We made the same account. In the next slide, we can see The adjustment excluding the effect of the court or the debt payment, we would have an EBITDA of 1.6 billion and a profit of 950 million in the six months above what was reported last year, which was around 650 million. So the margin EBITDA would be 42.7% and the net margin would be around 24.7%. Down some comments before moving to investments. The accounts that had variations are the same, so if you look at the third-party services and electricity, the same comment I made in the court, it works for the six-month period provisions, was also positive in the Both in the quarter and in the six-month period, closing in this adjusted profit of over 900 million. Now, looking at the investments, like our president highlighted, it's a very robust investment. We're closing 1,152,000,000 in the period of six months, an increase of 4.8% compared to the same period last year, last year. We also saw a record investment in the progress, the evolution. Last year we had 1 billion 99 million in the period of six months. We had increased 26% compared to the previous year and in June 24 was 871. This investment He segregated 35% in water, 55% sewage. The company is pursuing universalization. Consequently, the investment is higher than other assets. We have other assets, administrative and The funding origin 65% owned resources and 35% third parties. Now moving on to the next slides, we have the structure of the capital. Our net debt closing 2.6 billion. And leverage, which is the net debt by Iani Bichner, which is one time, which is an impact of the precatory, which is in the company's cash, which reduces our net debt. and if we convert the cash conversion was 1.3 billion and the conversion of Ibiza into cash was 95% looking at the cost of our debt It's an average cost of 12% and we bring a timeline, if you look on the right side, the amortization debt, we had debts in 2026 of 384 million, in 2027, 1 billion 82 million. As you can see, In the explanation, in the financial note, we have at the venture that maturity date is next year. That's why the amount is higher than the other years. In 2028, we have 789 million, 2029, 656 million, 2030, 965 million. And as of 2031, we have 3.4 billion, which represents 47% of our of our debt. It's a quite of diluted debt throughout the times and it's very well managed by the administration. The debt composition, the debt breakdown, we have the TR 37%, IPCA 30%, DI 22, 4% IPC FIPI, No Correction 3% and Euro 3% and 1% in JLP. Now, moving on to the covenants. We have a general outlook of our contract obligations, the covenants. They are all being met, looking The contract of KfW, I will mention the main indicators that cover all of them. So we have the coverage ratio has to be higher or equal to 1.1, the deadlet equal or less to 3, we are reaching zero. Add the honoris debt, less or equal to one, we have 143, and the level of debt has to be level or equal 60, and we reached 54%. In the next slide, we see this structure of our balance sheet. So we have an increase of the net debt. Our PPPs, our loans, they dropped 1.9, but we had a reduction of our financial investments. In June, we had some events. So in the next slide, we will see the cash flow. So we had some payments. We saw a net increase. We saw an increase in the operational turnover and capital. We had an increased job. but some accounts for example contractors and suppliers salaries and the payroll charges we had that decrease so salaries and payroll charges our our voluntary service program was done in installments so that's why the the balance last year was lower so now we In the assets and contracts and other assets it's a very significant line we can see all the investments we make in the projects all the projects that are being executed and they are in this account and within and later it will become an asset and will and then it will be part of the fixed assets so we close with 4.1 billion reais in this line and this is reflecting all the investments made by the company the fixed asset closing in 14.3 billion and the equity The turnover capital closed in 35 days, which is the relation between the turnover capital compared to the net revenue. So it's a good turnover if you look at it from this perspective. The cash flow, the operational activities in the company generated one point 1,309,000,000 The financing activities consumed our cash in also 1 billion and the financing activities brought a reduction of 1 billion 121 million so this financing activities net so we had we had some loans on 300 over 380 million the dividends payment and JCP 524 million, finance payment, we so paid out the debentures, so that brought an initial value in the beginning of the year, but now it tends to be lower. Then the lease payments, 77 million, and other valuations, 39 million. With that, we saw a reduction in our cash flow equivalent of 945 million. So at the beginning of the year, we had 5.6 billion, and now in June, we have an amount of 4.6 billion. So we conclude our presentation. So now I hand over the floor to Rodrigo for the Q&A session. So now we will start the Q&A session. So to make questions, we recommend that you send the questions through the Q&A icon and your names will be announced for you to ask your questions and then you will see a prompt to activate your microphone. If you cannot unmute your microphone, just write no make at the end of your question so that your question will be out loud. Our first question comes from Daniel Travitsky, analyst from SAF, about the provision of deprecatorio. What are the arguments of the company of part of the receivables and what what are you going to do judicially speaking to obtain that decision to obtain that choice about the judicial proceedings we made some we took some measures we We went all the way concerning administrative measures even before the publication of the note 2026 and from this note we requested a review of all this new proposal. We made a new notification and recently we appealed, we made an appeal, administrative appeal to requesting that if the note, the 0.7 note was valid, So this appeal was not judged by ACEPAP. So then we had a writ of mandamos, the first writ of mandamos, because we were afraid that the rule would change, which happened. So we did not receive the injunction, we were not successful, then we filed a new writ of mandamus and we requested some measures that were not granted to us and now We are going to make the further step and now in parallel, Dr. Flavio will add some information. So we are taking some actions so that we can understand whether we give up the path of rest of Mandamos or then we file an extraordinary file So whether we take some further measures, ordinary, to reclaim the right that we understand is our right. Dr. Flavio, so he will add to my comment. So as the president mentioned, the risk of mandamos was not appealed, definitely is being analyzed. It's a phase of injunction and we need to define our judgment and we are studying new measures to To reclaim our right, which is supported by the legal norms, we have several opinions, both from outside law firms and also internals. We have a study by the companies of sanitation, and so we understand We have this path, we are not giving up. We have a lot of arguments to discuss judicially and I think we owe this to the company to defend this until the last higher court. And I think another important thing, it's a decision from high management that every legal path we will follow, we will go all the way to pursue our right, which we understand is It's the right of the company so the best the best law firms are being hired we have several legal opinions that uphold our decision and this path will be followed all the way to the end so we will do everything we We need to do to re-establish what was anticipated when we recognized this accounting and not change the rules in the middle of the way. You know, just like AGEPARA, our agency, has done. Sorry, it's not the provision in the quarter, so it So we were waiting to see whether we made the provisions, we were waiting for the legal decisions to see an effect, to see the technical note point two from Axepar. So since we did not have any new event looking from the law and CPC, Thank you very much. So right now we are considering the possibility of losing. So that's why we recognize that the 25%, the regulatory liabilities there is recognized 100% for the reversal according to the technical note 002 that AGPAR The resources are invested in the company so this note stipulated that 50% would be investment non-honorous and 50% we would have to reverse or to In better tariffs for the consumption in the level of five cubic meters, we understand that it would not be reasonable to... Yes, it would not be fair to just benefit the... The consumers that consume less, so it would not be fair with those who consume more. So continuing, the next question comes from Matheus Paolini, an investor. The same question was asked by other participants. Initially, he congratulates the company for its good results, and he has two questions. First question, after the After the TJ, after the law did not accept your request, so in case there is a favorable decision, the reversal would be 4.4 billion or only the 25%? Is there any way you can make an agreement with AGEPAR or come to an understanding So how will you work to operationalize the 50% discount in the tariffs and the liquid network and the 50% investment on euros? Will they be excluded in the regulatory base or there is a possibility of incorporating it in the future? I would like to add some information of Osiris and Flavio too, but our expectation is an expectation that in the next 15-20 days we will have the final decision. So we are hopeful that this decision will confirm the right that we understand as fair Which is the application of the Note 7, Technical Note 7, where 25% would be for reduction of tariff, 75%. And we would like this discount to be applied in a linear manner for all the levels of consumptions benefiting all our clients. So that they all had the same discount applied in their bills and 25% of course for the company within the law. So we defend 75-25 and we will fight for that and we will do everything possible but the expectation is big. So that we can have this result. But if we don't have this result, we will try another strategy. And we understand that this 226 note brings additional responsibilities. This 50% of resources, non-honorous to be applied in the investments, in projects, they are not part of our regulatory assets. So this would be outside the tariff. We understand that this is not healthy because we have to segregate these investments Without having to do all the OPEX and not have a remuneration of tariffs for all these investments, we proposed an administrative resource for a GEPAR, which was not judged. And so we are requesting the linear discount and not what was proposed at 25% in the level of 5%. From the perspective of our company, we don't reach the result of tariff moderation which is expected by all consumers. From this perspective, I reaffirm every path that is possible, whether legal or administrative, we will pursue. to re-establish the rule that we had when we recognized this result in our accounts, not in the actual amount, but when we received the news of this court-ordered debt payment that we made in the past. According to our president, it's a method of legal strategy. So we will make, analyze and make all the necessary measures concerning the AGEPAR agreement. AGEPAR is our regulatory agent. It regulates, it creates the rules. So I don't know if there is any possibility of an agreement because it's, Because we don't see any possibility of making an agreement because it's not one party litigating against the other. So there is no possibility of agreement concerning the This, this, the inclusion of this 25%, I think, as it is mentioned, we are taking the necessary measures now concerning this technical note and this is being recognized in our accounting statement. Another thing we expedited and we also requested a mediation between AXEPAD and SANEPAD to be done by the government, state government, which is the major shareholder. But the only proposal presented by SANEPAD is the recognition of the Technical Note 7. There is no other agreement other than The technical note, point two, said that the discount on the tariff would be 35 days after the publication of the technical note so it should have initiated in July 25 we requested since we appealed for the we requested to suspend until this resource was judged, it was not deferred, and so we requested an extension of deadline to implement this discount in the tariff according to the technical note, even because of operational issues that our IT is totally focused on the issue of legal reform that the company is as of December 1st we have to issue an invoice with the new leak changes tax in taxes we have to issue the invoice so the Company asked for an extension of deadline. So we might have an answer before that. Right now we are not giving any discounts to the users, to the consumers. According to the technical note, we would have 50% as a discount in the tariff. So So with that 75% for moderation tariffs, it would change the law. So we are waiting for the decision so that we can operationalize the proceedings. One question from Matheus Paulini West. The revenue move in 12 months increased a lot. What is the... Description of this increase, the effect of the social tariff in 2025. What is the expectation of provision for credits of liquidation, doubtful liquidation in 2026? That was my team's questions. The delinquency, if we look at it, In the quarter, in closing of six months, it goes in 1.9%. We had 0.8% in the same period last year. We had the effect last year If I'm not mistaken, we had the program of credit recovery, which was quite positive. It brought a recovery of credits higher than in the same period that we are comparing with this year. Looking from the perspective of the losses, loss provisions, we had an effect We improved the provision procedures. In the first half of the year, we recognized what we called the wagon effect, which was the consumers that paid their debt in installments. For the second half, we cannot anticipate, the company does not disclose provisions, future provisions. Our next question comes from Reinaldo Verissimo, an investor. Is there any interest in disputing the concession for sanitation in other states? And could you also give us an overview of how El Niño affects Sanepar? I believe that this moment is Thank you very much. They are within our radar. But yes, we have to do it with a lot of responsibility. We have to make investments on the contracts we have. And these partnerships would be a nationalization, maybe an increase of revenue. But we need to make a very, very accurate analysis so that we Thank you very much. Thank you very much. Peralta de Souza, Maria Alicia Lima Peralta de Souza, Maria Alicia Lima We are creating a contingency plan to face this issue. What it may bring to us is not issues or challenges in dealing with water. So we are bringing technologies so that even with high I would like to ask Fernando Guedes, our Environment Director, to make his comments. Good morning. As our president Wilson Blay said, there is a confirmation around 95% of a severe intensity of the El Niño phenomenon. And another probability that calls our attention that we highlight is 69% of intensity of this phenomenon might be one of the biggest. Since 1950, the company has looked at that with a lot of concern, very cautiously, and managing these risks, creating operational resilience and analyzing all the impacts that will result from this So all this risk management, resilience, operational resilience management, but we have management tools and technologies and methodologies in terms of water security, actions that involve monitoring, security, environment and systematic follow-up of We highlight a tool that call our attention not only in Paraná but all over the country. The InfroIndro platform developed in partnership with CINEPAR which is a monitoring technology in the state of Paraná. It's a management technology that monitors climatic events and The impact in the reservoirs. So this gives us a general view and allows us to manage the risks more effectively. So the company is anticipating, is predicting and organizing itself, training its personnel, and also working with the authorities in case there are some dramatic situations. If this risk intensifies at the end of September, The company is totally prepared with energy generators, submersive pumps in case of floods in our and also maybe tornadoes that might cause a drop, blackouts. So with these generators, we can continue delivering our services in the state of Paraná. And with the issue, sometimes a lot of sediments can flow into the reservoirs, but our team and the operation board is prepared to deal or to treat this water as necessary and meet the indicators which are required by the health ministry. So I want to make, so be sure that we are planned and we have, we are prepared to face these risks that might happen more and this is, this likelihood is only increasing. I would like to say that we have a permanent working group made up by the Civil Defense of the State of Paraná, together with Cinepar and Sanepar, where this training process is offered to all our employees. Every change, every service, we have priority together with the civil defense. And Sanepar is studying that on daily basis, projecting scenarios and creating contingency plans. So we have identified in all our projects So we can see maybe our new sources where we do not have this turbulence, where the water is not compromised because of these storms. So the storms that might bring blackouts, so we are hiring generators and also batteries, like no brakes, that we... To allow us not to have instability that would not cause our pumps to stop. And so all our wastewater treatment plants, to keep them working. And I want you to make sure that all plants, everything is being done, tested to avoid any difficulties in the future. Our next question comes from Luis Alves, investor. How is the new reservoir? Is it in operation? Meaning Guava, this new reservoir gives us, it allows us the flow until of 2,000 liters per second today's 1,300 liters per second in some periods. If we did not have Mininguava, only in the course of Rio Mininguava River, the flow drops below 600, 500 liters per second, causing difficulties. In the treatment and distribution. So we are very comfortable operationally because we are enjoying what is reserved in Miniguava to allow this fluidity, this flow so that we can treat the water by the flow of the maximum flow of treatment estimated by our wastewater treatment the growth is very high we had some we had some droughts we had some lack of rain at the beginning of the year on december last year we we we expected the feeling of this reservoir to be In summer and beginning of autumn, it did not exceed 5-6% of filling level. So with the utilization of this permanent flow of what we need in this ETA. So now as you see, we left from 13%, but today the beginning of the Today we see the filling level is 20% so we have a good perspective that by the end of the year the levels will be within the operational levels and then it can bring some confidence and resilience, operational resilience, very strong. Now our next question comes from Guilherme da Rocha. Investors. If you consider the regulatory liability, you have a good cash generation and good profit. What is the objective criteria the board will take for the distribution of the dividends? Can we expect a catch-up dividend? So that was Guilherme's question. Thank you for your question. Obviously, the company has its politics. We have, according to the policy, we can have a distribution of from 25% to 50% with the advent of the technical node out of For care, administration suspended the credit of JPCS of the first half. So the statute predicts the credit on six month basis with the ongoing of the AGEPAR proceedings that as mentioned the company is seeking all the resources To make the previous note valid, we also have the issue of revisiting the business plan of the company that in the second half we are revisiting it for the period 2027 to 2031 and the board in December Based on our performance in the second half, we'll decide what credit will be made. So we conclude the question and answer session and the questions that have not been read will be answered. So I hand over to Osiris Costas for the final remarks. I'd like to thank the presence of all the board. Thank you all who participated in this conference and wish you a very good day and very good weekend. So the conference of results of the second half of 2026 is concluded. Thank you all and have a great day.