ELPC Companhia Paranaense de Energia COPEL

List of contents

1. Consolidated Results

The following analyses refer to the first quarter of 2024 compared to the same period in 2023.

1.1 EBITDA

Copel's adjusted EBITDA¹ (excluding, in addition to non-recurring items, revenues from Copel Dis' VNR, equity and inflation on assets from transmission contracts) was R$1,329.7 million in 1Q24. This amount was 6.3% lower than the R$ 1,418.8 million in 1Q23, mainly reflecting the lower average price of energy sold by Copel GeT, partially offset by the increase in Copel Distribuição's revenue due to the 7.9% growth in the billed wire market in its concession area.

Considering continuing operations (excluding the results of Compagas and UEGA, which are in the process of being divested) and excluding only non-recurring items, adjusted EBITDA was R$1,411.4 million, 10.3% lower than the R$1,573.9 million in 1Q23.

Thus, the main factors that explain the result in the quarter are:

These events were partially compensated, essentially, by the better result of Copel Distribuição, mainly due to (i) the 7.9% growth in the billed wire market; (ii) the tariff adjustment of June 2023, with an average effect of 6.32% on the Tariffs for the Use of the Distribution System (TUSD); and (iii) the reduction of R$25.3 million in the line of "other operating costs and expenses", due, basically, to the higher recovery of taxes and disposal of assets.

Considering discontinued operations, adjusted EBITDA, excluding only non-recurring items, was
R$ 1,432.5 million in 1Q24, with a variation of 11.5% lower than the R$ 1,617.8 million in 1Q23, a reflection, in addition to factors mentioned, the lower result of Compagas due to the lower sales volume for the cogeneration and industrial segments.

Adjusted Consolidated EBITDA

Note. Considers discontinued operations and equity

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

1 Excluding non-recurring items, fair value of Copel Distribuição's indemnifiable concession assets (VNR), and IFRS effects on transmission contract assets.

In 1Q24, the following non-recurring items were recorded: (i) R$ 12.8 million related to the fair value of Copel Mercado Livre's 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; and (ii) partial reversal of impairment of generation assets in the amount of R$ 1.2 million, basically referring to the GPS HPP.

In the context of transmission assets, item 3.1.1 presents the regulatory accounting of the result for the purpose of verifying the IFRS (International Financial Reporting Standards) effect.

1.2 Operating Revenue

Net operating revenue from continuing operations totaled R$5,417.0 million in 1Q24, up 2.8% from R$5,267.6 million in 1Q23. This result is mainly a reflection of:

These increases were partially offset, above all, by (i) the reduction of R$298.6 million in the result of sectoral financial assets and liabilities (CVA), mainly reflecting the reduction in costs with sectoral charges and financial components; (ii) the decrease of R$ 152.4 million in revenue from the supply of electricity, basically due to the lower average price in the sale of energy and the lower performance of Copel GeT's wind complexes; and (iii) the decrease of R$48.4 million in "other operating revenues", mainly due to the lower fair value in the purchase and sale of energy (mark-to-market) of Copel Mercado Livre.

Operating Income Breakdown

1.3 Operating Costs and Expenses

In 1Q24, operating costs and expenses from continuing operations totaled R$4,463.6 million, an increase of 6.8% compared to R$4,180.1 million in 1Q23, mainly due to:

These increases were partially offset by the reduction of 13.3% (R$110 million) in manageable costs (PMSO), mainly due to (i) a reduction of R$118.8 million in personnel expenses for managers, resulting from the indemnity of R$138.2 million related to the bonus of the additional third of vacation paid in January 2023, after a collective bargaining agreement signed with employees. This compensatory indemnity replaced the benefit of additional vacation allowance, dealt with in previous Collective Bargaining Agreements. The indemnity ceased the payment of this benefit, and only the constitutional third of vacation was preserved for the employees (CF, 7th, XVII); and (ii) a decrease of R$5.4 million in the "other operating costs and expenses" line, due, especially, to the higher recovery of taxes and disposal of assets within the scope of the distributor. Reductions partially offset by the growth of R$ 11.7 million with third-party services, basically due to higher costs with maintenance of the electric system within the distributor, due to the greater amount of bad weather, and within the scope of Copel GeT, due to the increase of R$ 8.4 million in expenses with maintenance of wind farms.

Neutralizing the effects of the severance pay for the additional third of vacation and the provisions related to profit sharing (PLR) and performance bonus (PPD), there was an increase of 5.9% in expenses with personnel and managers, in line with the salary recomposition for the period provided for in the collective bargaining agreement and in the Company's compensation policy.

Evolution of the establishment plan

Breakdown of Costs and Expenses

It is worth mentioning that the company, in 2023, changed the way in which the item "monetary update on provisions for litigation" is accounted for, which is no longer recorded in the line of provisions and reversals and is now part of financial expenses. More information can be found in Note 28.1 to our Financial Statements.

1.4 Equity in Earnings of Subsidiaries

The equity result of Copel's jointly controlled projects and other affiliates decreased by R$ 22.4 million compared to the same period of the previous year (R$ 81.6 million, compared to R$ 104.1 million recorded in 1Q23), as a result of the lower remuneration on transmission contract assets, basically explained by the lower inflation (IPCA) in 1Q24 (1.42%) compared to 2.09% in 1Q23. More details can be viewed in Annex I.

1.5 Financial Result

In 1Q24, the financial result was negative at R$ 268.2 million, compared to negative R$ 329.2 million recorded in 1Q23, reflecting an improvement of 18.5%.

Financial revenues increased by R$19.4 million, mainly due to the higher income from investments, mainly due to the higher volume of cash resources.

Financial expenses decreased by R$41.6 million, mainly due to the decrease of R$39.9 million due to monetary variation and debt charges, due to lower interest rates in the period.

1.6 Consolidated Net Income

In 1Q24, considering discontinued operations, Copel recorded net income of R$ 533.5 million, compared to R$ 635.5 million in 1Q23 (a decrease of 16.0%). In addition to the items already mentioned, the growth of R$ 33.2 million in the item "depreciation and amortization" contributed to the reduction in the result, mainly due to the investment cycle of Copel Distribuição and the entry, as of January 30, 2023, of assets associated with the Aventura and Santa Rosa & Mundo Novo Wind Complexes.

1.7 Debt

Copel's total consolidated debt, considering the result of continuing operations, totaled R$15,046.5 million on March 31, 2024, a change of 0.6% compared to the amount recorded on December 31, 2023, of R$14,962.3 million.

At the end of 1Q24, the Company's gross indebtedness represented 60.9% of consolidated shareholders' equity, which was R$24,725.3 million.

The following table and graphs show the indebtedness of Copel and its subsidiaries at the end of the first quarter of 2024.

Debt by Subsidiary

Note: the Company has at Availability the amount of R$ 2.0 billion related to the funding in the Primary Offering of Shares for the payment of the Grant Bonus for the renewal of the concessions of the FDA, Segredo and Salto Caxias plants.

Adjusted Net Debt/Adjusted EBITDA

Debt Indexes

Average cost: 9.62%

Amortization - R$ million

Average Term: 3.9 years

Weighted Average Cost and Average Term

Copel's consolidated debt at the end of the first quarter of 2024, considering Compagas' 4th issuance of simple debentures in July 2023 in the current amount of R$ 265.0 million, totaled R$ 15,311.5 million.

2. Investments

2.1 Investment Policy

In March 2021, the Board of Directors approved the Company's Investment Policy. This Policy was analyzed and approved by the Investment and Innovation Committee, which was established by the new Bylaws of March 11, 2021, whose main purpose is to improve discipline in capital allocation, being an essential tool for the execution of strategic guidelines for sustainable growth, shareholder value generation and continuity of our energy business.

The Policy establishes the criteria for the selection, prioritization, evaluation, approval and monitoring of investments. Among the various aspects, the Policy segregates investment opportunities into three groups that will be prioritized as follows:

The Investment and Innovation Committee meets ordinarily once a month and extraordinarily whenever necessary, analyzing and issuing recommendations for the Company's investment proposals.

2.2 Investment Program

The Investment Programs follow their schedules in each development project. In 1Q24, the amount realized in the investment program was R$ 592.0 million, of which R$ 534.6 million was realized by Copel Distribuição, R$ 33.9 million by Copel Geração e Transmissão (Generation and Transmission),
R$ 22.6 million by Copel Serviços and others and R$ 0.9 million by Copel Holding and Copel Mercado Livre.

The investments made at Copel Distribuição aim to expand and automate the electrical infrastructure in the concession area, mainly through the Paraná Trifásico, Smart Grid and Total Reliability programs (see item 4.2.4). Of the amount allocated per quarter, 91.9% was allocated to investments in electrical assets (net of special obligations), 5.7% to investments in non-electrical assets and 2.4% to other investments.

^{1 Includes the "Transformação" program comprising the Paraná Trifásico, Rede Elétrica Inteligente and Confiabilidade Total.}

^{2 Includes Facility Modernization Plan - PMI.}

^{3 Includes modernization of the GOC (Generation Operations Center), investments in substations/transmission lines and other projects.}

^{4 Includes innovation plan in the energy sector and aligned with the investment thesis, Copel's innovation programs and ESG practice.}

3. Copel Geração e Transmissão

3.1 Financial Performance

Copel GeT presented an adjusted EBITDA of R$686.4 million, an amount 17.2% lower than the R$829.5 million recorded in 1Q23. This result mainly reflects the reduction in revenue from “Electricity sales to distributors” by R$ 160.5 million, due to (i) lower average energy price for 2024 of R$ 174.86 compared to R$ 205.98 in 1Q23 , despite the increase in energy sold (5,778 GWh in 1Q24 compared to 5,669 GWh in 1Q23); and (ii) increase in generation diversion in wind complexes, with an increase in revenue frustration of R$49.1 million; partially offset by (iii) increase in energy sold in regulated auctions (CCEARs) with full incorporation in the quarter of Complexes Aventura and Complexo SR&MN (+R$30.7 million) and increase of R$10.3 million, with the start of supply in the ACR of the Vilas Wind Complex and PCH Bela Vista.

Lower remuneration on transmission contract assets also contributed to the result, with a reduction of R$32.4 million in Copel GeT's “use of the main distribution and transmission grid”, mainly due to the periodic tariff review applied to contracts and lower inflation in comparison between periods (IPCA of 1.42% in 1Q24 compared to 2.09% in 1Q23). Item 3.1.1 presents the regulatory accounting of results for the purpose of verifying the IFRS (International Financial Reporting Standards) effect on transmission assets.

Additionally, an increase in costs with the acquisition of “electricity purchased for resale” was recorded by R$ 11.8 million, essentially a consequence of the lower performance of wind farms.

Regarding non-recurring items in 1Q24, a partial reversal of impairment of generation assets in the amount of R$1.2 million was recorded, essentially from UHE GPS.

Expenses with PMSO, excluding provisions and reversals, decreased by 8.4%, influenced by:

This reduction was partially offset by:

Neutralizing the effects of provisions relating to PLR, PPD and Indemnity, there is a 10.4% increase in personnel and managers costs in the quarterly comparison, justified mainly by the salary recovery in

2023, in accordance with the collective agreement and salary policy, and the lower amount of labor allocated to fixed assets, given the lower volume of works at Copel GeT.

Net income with discontinued operations was R$291.8 million in 1Q24, compared to R$413.0 million in 1Q23, a reduction of 29.3% when comparing the quarters. This result reflects, in addition to the items discussed previously, (a) the growth of (+R$ 16.9 million) in the item “depreciation and amortization”, mainly due to the incorporation of the Aventura and SR&MN Wind Complexes (+R$ 7 .1 million); the reduction of R$53.2 million in the financial result deficit, resulting from the lower amount of debt and the lower CDI; and (c) lower expenditure on income tax and social contribution.

3.1.1 IFRS Effect on the Transmission Segment

3.2 Operational Performance application of CPC 47 / IFRS 15 on the corporate statements in the transmission segment.

Copel is present in 10 states, operating in the generation and transmission segments.

In the Generation business, Copel GET operates a diversified park of hydroelectric, wind and thermal power plants, totaling 6,966.7 MW of installed capacity and 3,156.6 average MW of physical guarantee. In the Transmission segment, Copel has a total grid of 9,685 km of transmission line and 53 basic grid substations, considering the stakes.

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

3.2.1 Generation

Copel's generating complex is composed of 94% renewable sources such as hydro and wind.

3.2.2 Hydro and Wind Generation

The power generation of Copel Geração e Transmissão S.A. and its wind farms in 1Q24 was 6,639 GWh (compared to 6,430 GWh in 1Q23). The increase is mainly due to the acquisition of the Aventura and SRMN wind complexes, which became part of the Copel group as of February 2023. In relation to the energy sold in 1Q24, Copel GeT's hydropower plants (including the Foz do Areia HPP and Bela Vista SHP) recorded an increase of 2.1% and the wind farms recorded an increase of 1.1%, mainly due to the increase in energy sold in regulated auctions (CCEARs) by the Aventura and SR&MN Wind Complexes.

3.2.3 Thermal Generation

Araucária TPP

It is a natural gas-fired generation plant with an installed capacity of 484.2 MW that operates in a combined cycle (two gas turbines and one steam turbine) and operates in the so-called "merchant" modality in which the plant operates without contracts for the sale of electricity, either in the free environment (ACL) or regulated (ACR), subject to fluctuations in the Price for Settlement of Differences – PLD. In this modality, the thermoelectric plant is centrally dispatched by the National Electric System Operator (ONS), in situations where the Marginal Cost of Operation (CMO) of the electric system exceeds its Unit Variable Cost (CVU) approved by ANEEL, or out of the merit order, when requested by the ONS. For the Araucária TPP, which is in the process of being divested by Copel, there was no dispatch in 1Q24, due to hydrological conditions.

Thermal Power Plant Figueira

On February 23, 2024, Aneel's Technical Inspection Superintendence (SFT), through Order No. 561/2024, authorized the suspension of the commercial operation of the generating unit – UG1 of the Figueira TPP. Copel has also formalized with the granting authority the withdrawal of the request for extension of the concession of the asset and is awaiting a statement from the Ministry of Mines and Energy. The thermoelectric plant with 20 MW of installed power, powered by coal, does not have current power supply contracts. This claim is another step in Copel's strategic plan to decarbonize its power generation portfolio.

In 1Q24, generation was 3.0 GWh.

GSF and PLD

3.3 Transmission

Copel has more than 9,600 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 grid, Copel provides services to projects of other concessionaires with the quality of those who have accumulated 69 years of experience in the sector. The Transmission projects are listed in Annex IV, including the projects of Copel Geração e Transmissão (Copel Generation and Transmission), West Coast SPEs, Marumbi and Uirapuru Transmissora (100% Copel GeT), as well as the 7 SPEs in which Copel GeT has a stake.

3.3.1 RBSE Reprofiling

Concession Agreement 060/2001 represents 42.5% of Copel GET's annual permitted transmission revenue (RAP), also considering the shareholdings. Below, we describe the flow of receipt of the portion of the Revenue related to the Basic Grid of the Existing System – RBSE 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 to compose these revenues by the regulatory body. The values referring to O&M from the 2023-2024 cycle were adjusted by the IPCA.

Note:

Economic component: future values based on the 2023-2024 cycle (according to REH 3,216/2023 of 06/30/2023)

Financial component: values published in REH 2,847/21. Subject to revision during the current cycle in view of the controversy in the methodology used to calculate these values by the regulatory agency.

RAP values up to the 2023-2024 cycle taken from the REH of each cycle, with cycle price reference (June of the year of publication)

Copel Distribuição posted adjusted EBITDA, excluding VNR, of R$ 616.7 million in 1Q24, an increase of 27.9% due to: (i) the 7.9% growth in the billed wire market, mainly due to higher temperatures (see item 4.2.1), (ii) the tariff adjustment in June 2023, with an average increase of 6.32% in the Distribution System Use Tariffs (TUSD), and (iii) the increase of 4.5% (R$ 5.1 million) in other operating revenues, due to the increase in pole-sharing contracts and their contractual adjustment by the IGP-M.

These gains were partially offset by the increase of R$63.6 million in provisions, mainly (i) the provision for doubtful debts (PCLD) of R$39.5 million in 1Q24 compared to a reversal of R$15.4 million in 1Q23, as a result of the recovery of invoices due to the end of the charging restrictions imposed on the distributor due to the COVID-19 pandemic in that period, and (ii) the increase of R$8.7 million (26.3%) in provisions for litigation, mainly civil and administrative.

Manageable costs (PMSO) showed a reduction of 19.0%, mainly reflecting (i) the 31.0% reduction in personnel and management costs, due to the incidence of the additional one-third vacation allowance of R$ 90.7 million in 1Q23, (ii) the 58.3% decrease in other operating costs and expenses, essentially related to the recovery of taxes (+R$12.2 million) and gains from the deactivation of assets and rights (+R$ 6.4 million), influenced by the sale of land; and (iii) the 12.6% reduction in material costs, mainly due to the reduction in IT costs and fuel and vehicle parts; partially offset by the 4.2% increase in third-party services, mainly caused by higher expenses with maintenance of the electrical system, due to increased rainfall, incidences of bad weather and contractual adjustments.

The personal account and management account, excluding the indemnity of the additional third of vacation and the effects of the provision of PPD and PLR, recorded an increase of 3.7%, due to the salary adjustment for the period provided for in the collective agreement and salary policy.

Copel Distribuição's net income in 1Q24 was R$ 241.9 million, an increase of 73.2%, due to higher operating results, mainly due to the improvement in operating results due to the growth of the billed wire market and TUSD's tariff adjustment, partially offset by a 27.0% reduction in financial revenues. The following are the main indicators of Copel Distribuição:

In 1Q24, the following also stand out:

4.1.1 Regulatory Efficiency

Copel Distribuição recorded adjusted EBITDA of R$ 2,239,7 million in the last 12 months, equivalent to an efficiency of R$ 573,8 million, 34,4% above the regulatory EBITDA.

Note: Regulatory EBITDA is calculated based on the WACC values on Remuneration Base + Special Obligations + LPLT/RGR, and QRR published in ANEEL Technical Notes in Tariff Revision or Adjustment events.

4.2 Operacional Performance

4.2.1 Grid Market (TUSD)

Copel Distribuição's wire market, made up of the captive market, the supply to concessionaires and permissionaires within the State of Paraná and all the free consumers existing in its concession area, had an increase of 10.3% in electricity consumption in the 1Q24 compared to the same period of the previous year, mainly due to higher temperatures. The billed wire market, which considers offset energy from Mini and Micro Distributed Generation – MMGD, increased 7.9% in the quarter.

4.2.2 Captive Market

The captive market showed an increase of 11.7% in electricity consumption in 1Q24 compared to the same period of the previous year. The billed captive market, which considers energy offset from MMGD, increased by 7.7% in the quarter.

4.2.3 Concession Agreement

In December 2015, the Company signed the fifth amendment to the Public Service Concession Agreement for the Distribution of Electric Energy No. 46/1999 of Copel Distribuição S.A., which extends the concession until July 7, 2045. Copel Distribuição complied with the conditioning requirements of economic-financial efficiency and quality for the inspection cycle of the initial 5 years. From the sixth year following the conclusion of the contract, non-compliance with the quality criteria for three consecutive years or economic and financial management for two consecutive years implies the opening of the forfeiture process. For the criterion of quality of distribution service provision, ANEEL defined the limits of Equivalent Duration of Interruption per Consumer Unit (DEC) and Equivalent Frequency of Interruption per Consumer Unit (FEC) for the years 2021 to 2026. For the DEC, the result for the last 12 months calculated in March 2024 was 8.21 hours. For the FEC, the result in the same period was 5.27 interruptions.

The criterion of efficiency of economic and financial management will be measured by the calculation, each calendar year, according to ANEEL Normative Resolution No. 896/2020, by the following inequality:

4.2.4 Investment and Operational Data

Transformation Program - a broad investment plan aimed at modernizing, automating and renewing the distribution grid and private communication grid with standardized technologies to serve automation equipment. Among the expected benefits are the reinforcement of rural grids 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 to achieve the objectives:

•       Paraná Three-Phase: represents the improvement and renewal of rural distribution grids in the Company's concession area, with the implementation of a three-phase grid and the creation of redundancy in the main rural branches. By the end of March 2024, 16,286 km of grid had been built.

•       Smart Grid: aims to implement a private communication grid with standardized technology to serve all distribution grid automation equipment and advanced metering infrastructure. By the end of March 2024, 703,617 smart meters had been installed. In phase 1 of the program, advances were identified for our operation, with the reduction of man-hours and km driven, fewer non-technical losses, improvement in quality and reduction of compensations, with estimated benefits in the order of R$ 49 million/year.

•       Total Reliability: aims to ensure modernity in the operations of the energy grid based on the following premises: maintain full communication between teams and the availability of equipment in the grid, implement automation in special equipment, maintain the entire municipality of the concession with a substation or special key and expand grid circuits and equipment Self Healing. By the end of March 2024, the project had completed 85.36% of the planned schedule.

The Transformation Program covers the construction of approximately 25,000 km of new grids, 15,000 new automated points and the implementation of smart grid technology in the state of Paraná.

Compact and Protected Grids - deployment of compact grids predominantly in urban areas with a high degree of afforestation in the vicinity of distribution grids and protected grids exclusively in rural areas. Compact grids prevent tree cutting and pruning and improve the quality of supply by reducing the number of shutdowns. Protected nets also improve the quality and reliability of the system, as they prevent interruptions due to contact with vegetation or other objects and inclement weather. At the end of March 2024, the length of the compact and protected grids installed was 29,051 km, compared to 24,135 km in March 2023, an increase of 4,916 km, or 20.36% in twelve months.

Isolated Secondary Grid - investment in isolated secondary grids at low voltage (127/220V), which have significant advantages over the conventional overhead grid, such as: improving DEC and FEC indicators; making energy theft more difficult; improving environmental conditions; reducing pruning areas; increasing safety; reducing voltage drop along the grid; increasing the useful life of transformers by reducing the number of short circuits in the grid, among others. At the end of March 2024, the length of isolated secondary distribution grids installed was 23,028 km, compared to 22,105 km in March 2023, an increase of 923 km, or 4.17% in twelve months.

Losses - Losses are related to electricity that circulates through transmission lines and distribution grids, but is not sold, due to technical or commercial reasons. Distribution losses can be defined as the difference between the electricity purchased by distributors and the electricity billed to their consumers, being segmented as "technical" and "non-technical". Technical Losses are inherent to the activity of electricity distribution and occur due to its dissipation during the process of transport, voltage transformation and measurement as a result of the laws of physics. Historically, the Company's Technical Losses have maintained percentages close to or below the regulatory target. At the end of March 2024, Technical Losses in the last 12 months were 2,170.9 GWh, compared to 2,041.6 GWh in March 2023.

On the other hand, Non-Technical Losses, calculated by the difference between total losses and technical losses, originate mainly from theft (clandestine connection, direct diversion of the grid), fraud (meter tampering or deviations), reading, measurement and billing errors. These losses are largely associated with the management of the concessionaire and the socioeconomic characteristics of the concession areas. In this sense, the Company maintains a Program to Combat Non-Technical Losses, which consists of several actions aimed at reducing or maintaining the current level of non-technical losses, through the following actions:

ü  Improvement of actions to combat irregular procedures;

ü  Investments aimed at the provision and/or acquisition of equipment for inspection;

ü  Elaboration and execution of specific training related to commercial losses;

ü  Conducting inspections, both in Medium and Low Voltage;

ü  Educational notes in the press and messages on the electricity bill.

ü  Joint operations with the Civil Police and the Public Prosecutor's Office;

ü  Opening of a police investigation in the regions where significant numbers of irregular procedures were found.

At the end of March 2024, Non-Technical Losses in the last 12 months were 534.8 GWh, compared to 752.4 GWh in March 2023. It is worth highlighting that the targets established for the reasonable tariff for Non-Technical Losses take into account the level of complexity of the distributor's concession area and, according to the Aneel Report on Electricity Losses in Distribution 2023, the complexity index of Copel Distribuição's concession is one of the lowest compared to other concessionaires in Brazil. At the

end of March 2024, Total Losses were 2,705.8 GWh, compared to 2,794.0 GWh in March 2023. In terms of classification, Total Losses were made up of 80.2% Technical Losses and 19.8% of Non-Technical Losses.

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

The tariff pass-through of efficient loss levels is provided for in the concession contracts and these losses are included in the energy purchase costs up to the regulatory limit stipulated by ANEEL. Despite the total losses presenting percentages marginally above the regulatory one, the methodology for regulatory calculation uses the invoiced market and within this methodology, no loss glosses were calculated for Copel Distribuição in the annual tariff adjustment cycles of 2022 and 2023.

5. Copel Mercado Livre

5.1 Financial Performance

Copel Mercado Livre posted adjusted EBITDA of R$30.7 million in 1Q24, 39.2% lower than in 1Q23, mainly due to the reduction in revenues from the sale of electricity, the reduction in margins from the sale of energy and the increase of R$0.8 million (+162.5%) in provisions for litigation and doubtful accounts. Considering the non-recurring effects² listed below, EBITDA reached R$17.8 million, a reduction of 82.0% compared to the same period of the previous year, mainly due to the reasons indicated above and, mainly, due to the entry of customers into the base and the increase in the sensitivity of delinquency given by the credit risk rate with an effect on the mark-to-market.

Manageable costs, excluding provisions and reversals, reduced 14.7% compared to 1Q23, mainly as a result of the 33.0% reduction in personnel and administrator costs, due to the incidence of compensation for the additional third of vacations in 1Q23, of R$1.6 million, partially offset by the 48.6% increase in third-party services, mainly due to the increase in expenses with communication, processing and data transmission, and 22.1% with other operating costs and expenses, due to the increase in advertising and advertising expenses with projects to support social development and sport through tax incentives, which have no impact on the result and still contribute to the brand's exposure and positioning strategy.

The personal and management costs, excluding the incidence of compensation for the additional third of vacation and the PLR and PPD effects, recorded a reduction of 8.9% in 1Q24, even without changes in the number of employees and the salary adjustment of 4.51% in October 2023. Considering the accumulated inflation measured by the National Consumer Price Index – INPC, of 3.40% between 1Q23 and 1Q24, the personnel and administrators cost line recorded a reduction in real terms of 11.9%.

Copel Mercado Livre's net income in 1Q23 was R$ 17.6 million, a reduction of 75.1%, due to the lower operating result justified previously, partially offset by the financial result with increased revenue from financial investments (+R $0.2 million) and late payment charges on invoices (+R$0.1 million). Below, the main indicators of Copel Mercado Livre:

2 The main non-recurring item for COPEL Mercado Livre is 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 - mainly as a result of the execution of contracts that left the base and the increase in the sensitivity of default given by the credit risk rate.

5.2 Operacional Performance

Copel was a pioneer in creating an energy trader and the first to sell energy to free consumers, when this category was created in the country, in 1995. Copel Mercado Livre, created in 2016, is among the largest in the country in terms of energy volume sold in a free contracting environment, offering more savings and peace of mind for customers in all regions of Brazil.

For a long time known as Copel Energia, Copel Mercado Livre is responsible for selling energy and providing services in the ACL. In March 2024, the Company registered 1,487 customers/contracts, a reduction of 12.0% compared to the same period of the previous year. The amount of energy sold reached 6,042 GWh sold in 1Q24, an increase of 2.5% compared to the same period of the previous year. The graph below depicts the evolution of Copel Mercado Livre in terms of quantity of GWh sold and number of consumers.

6. Performance ESG

6.1 Copel pioneers in ESG in the sector

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 adhered to the "Pact for Water and Energy Resilience" Commitment and also 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 the ETHOS Institute, for the voluntary adoption of integrity measures, with public recognition for the commitment to implement 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.

6.2 Recent Highlights

Environmental

Social

Governance

Priority SDGs for the Brazilian Electricity Sector

6.3 Indicators

The indicators may change due to the assurance of the independent external audit.

Regarding the GHG scope 1 indicator (tCO2), the increase recorded is due to the resumption of the commercial operation of the Figueira TPP, on 12/07/2022, by ANEEL Order No. 2502/2022, with generation until September 2023. In line with the plan to have a 100% clean generation matrix, in October 2023 the Company filed a letter with the Ministry of Mines and Energy (MME) requesting the withdrawal of the intention to extend the concession of the Figueira TPP. In February 2024, Aneel decided to suspend commercial operation, and the plant will be hibernated.

6.4 Ratings, Rankings, and Indexes

Index	Ranking	Reference Year
	15th position 4º in SEB	2023
	CSA Score 70	2023
	A-	2023
	Sim	2023
	Medium Risk	2023
	A	2023

7. Other highlights

Available Cash Flow and Dividends

Available Cash Flow is defined in the Dividend Policy as: DCF = Cash generated by Operating activities, deducted from net cash used by investment activities, being: (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 Investment activities: amount invested in the fiscal year in non-current assets. The Table below demonstrates the calculation of the FCD on March 31, 2024:

In line with the dividend policy, considering the above DCF and the leverage level, the 69th Annual General Meeting approved the payment of interest on equity, declared on 09.20.2023, in the amount of R$ 501.0 million (ex date 09.29.2023), and dividends in the amount of R$ 131.1 million. Both payments will be made on 28.06.2024.

Long-Term Incentive Plan - ILP

The Company's 210th Extraordinary General Meeting held on April 22, 2024, approved the "Plan for the Granting of Restricted Shares and Performance Shares", which will be attended by managers and

employees of the Company and its subsidiaries. The Plan managed by the Board of Directors with the support of the People Committee establishes a dilution limit of up to 1.0% of the Company's total capital stock, up to 0.2% for Restricted Shares and up to 0.8% for Performance Shares. The ILP consolidates the Company's meritocratic practices for retaining, creating and attracting talent and represents an important commitment to long-term value creation, strengthening our organizational culture and reinforcing our commitment to excellence at all levels.

For more information, see the Plan for the Granting of Restricted Shares and Performance-Restricted Actions available on the ri.copel.com website.

Potential Divestment in Small Generation Assets

In line with the Company's strategic guideline for value generation, Copel approved the start of the non-binding stage for potential divestment in thirteen (13) small-scale generation assets, focusing its activities on larger assets. The divestment will enable the reuse of personnel linked to these assets, already trained and qualified, to replace the professionals who will leave the Company through the Voluntary Dismissal Plan (PDV). With this process, it is possible to optimize the group's capital allocation, with the improvement of the operational efficiency of the portfolio of Copel Geração e Transmissão S.A.

For more information, see Material Fact 03/2024.

Copel partners with Google Cloud

In line with the Company's strategic planning and vision of the future, Copel has entered into a partnership with Google and will migrate its Information Technology ("IT") services to Google Cloud, as a strategic measure for significant advances in operational efficiency and economies of scale. With the Google Cloud platform, the Company will enhance strategic decisions based on data analysis, artificial intelligence and machine learning tools, with integration with existing analytical systems, enabling more competitiveness and agility in the development of the energy generation, transmission, distribution and trading businesses, from asset management and operation to customer service. This partnership reinforces our commitment to excellence, information security and the continuous search for innovative solutions for business sustainability and value creation.

Copel's CVC Fund invests in start-up aimed at market opening and DG

Through FIP Copel Ventures I, the Company's Corporate Venture Capital (CVC) fund, Copel made its second investment, now in a solar energy market place startup , with integration between Distributed Generation ("DG") and end consumers. R$ 11.0 million was allocated and the investment aims to advance in an innovative solution, with a view to simplifying access to clean energy through a digital platform, which connects the consumer to the renewable energy project through a subscription service. The move is in line with the strategic commitment to be recognized by customers for its offer of innovative and digital services that generate value for all its stakeholders.

Replacement of independent audit

As of the revision of the 1Q24 quarterly information, PricewaterhouseCoopers Auditores Independentes (PwC) will provide the independent audit service of the financial statements of Copel and its wholly-owned subsidiaries until the end of the 2028 fiscal year, replacing Deloitte Touche Tohmatsu Auditores Independentes ("Deloitte"). The hiring aims to comply with governance practices and the recommendation of the Statutory Audit Committee ("CAE") to rotate independent auditors before the maximum period required in article 31-A of CVM Resolution No. 23/21.

The Company would like to thank Deloitte for the services rendered, which were fundamental for the solid, complete and transparent construction of the financial-accounting records.

Copel GeT creates a system that prevents environmental accidents at a power plant

The Company's technical team developed an oil separation and containment system in the turbine cover of the hydroelectric plant's generating units, avoiding contamination of the river in case of leaks.  The environmentally relevant proposal is to take advantage of the immiscible physical properties of the oil accumulated on the surface of the water to separate it using a "T" shaped tube, open at the ends. The system is installed at the Governador José Richa plant and is capable of retaining approximately 10,000 liters of oil in the event of a leak from bearings, servo motors and reservoirs. Once retained, this oil can be pumped into suitable storage containers and disposed of properly.

Project sponsored by Copel rescues the history of Brazilian women writers erased from literary records

Between April and July, students from municipal and state schools in the municipalities of Colombo, Pinhais and Almirante Tamandaré receive free cultural activities from the “Anônimas” project, which aims to rescue the stories of female writers of Brazilian literature who were excluded from cultural memory and literary analyses. The project is sponsored by Copel via the State Program for the Promotion and Incentive of Culture (PROFICE) and reinforces the commitment to sustainability and gender equality linked to SDG 5, aiming to establish a fair and inclusive representation of women and their stories.

Disclaimer

Informações contidas neste documento podem incluir considerações futuras e refletem a percepção atual e perspectivas da diretoria sobre a evolução do ambiente macroeconômico, condições da indústria, desempenho da Companhia e resultados financeiros. Quaisquer declarações, expectativas, capacidades, planos e conjecturas contidos neste documento, que não descrevam fatos históricos, tais como informações a respeito da declaração de pagamento de dividendos, a direção futura das operações, a implementação de estratégias operacionais e financeiras relevantes, o programa de investimento, os fatores ou tendências que afetem a condição financeira, liquidez ou resultados das operações são considerações futuras de significado previsto no “U.S. Private Securities Litigation Reform Act” de 1995 e contemplam diversos riscos e incertezas. Não há garantias de que tais resultados venham a ocorrer. As declarações são baseadas em diversos fatores e expectativas, incluindo condições econômicas e mercadológicas, competitividade da indústria e fatores operacionais. Quaisquer mudanças em tais expectativas e fatores podem implicar que o resultado real seja materialmente diferente das expectativas correntes.