Business
Light : Notice to the Market - 1Q26 Earnings Release
Light : Notice to the Market - 1Q26 Earnings
About this update from Light S.a.
Earnings Presentation 1Q26 MESSAGE FROM THE CEO Highlights of the Period CONCESSION RENEWAL Concession renewed for an additional 30 years, with recognition of the Concession Area's specific characteristics CONSOLIDATED RESULT EBITDA of R$423 million (-27.0% YoY) and net income of R$2.8 billion in 1Q26 OPERATION TMA hits a new record low in its historical series (-37.5% YoY) QUALITY DEC and FEC within regulatory limits CONTINGENCIES Continuity of the trajectory of the lowest stock and inflow volume in the last 9 years for 1Q TOTAL INVESTMENT R$349 million in 1Q26 (+18% YoY) ‹ 4 › DisCo 1Q26 DisCo Market | Quarter's consumption reflects mild weather in 1Q26 and a stronger comparative base from 1Q25 Energy Market Average Temperature (ºC) -1.5ºC 1Q25 1Q26 2026: rainiest February in nearly 30 years 2025: hottest February and all-time demand record in the last 6 years 26.9º 28.3º (GWh) 7,128 (122) (88) (-4.9% YoY) (85) 6,750 (-4.1% YoY) (84) (-6.7% YoY) (-11.8% YoY) -378 GWh | -5.3% YoY 1Q25 Residential Commercial Industrial Other 1Q26 Note: The other group considers utilities and other classes. ‹ 5 › Light S.A. | 1Q26 Results Presentation DisCo 1Q26 DisCo Quality and Operation | Operational resilience: new TMAE record, despite the highest volume of emergency services ever recorded in a first quarter in the last 10 years DEC (LTM) FEC (LTM) 6.80h 6.80h 6.80h 6.80h 6.76h 4.50x 4.50x 4.50x 4.50x 4.46x 6.10h 6.23h 6.53h 6.74h 6.09h 2.95x 2.97x 3.27x 3.46x 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 DEC ANEEL Regulatory Limit FEC ANEEL Regulatory Limit 2.85x Average Emergency Service Time (minutes, LTM) Interruptions >24h (%, LTM) -14.2 pp 18.1% 15.1% 12.0% 9.8% 3.9% Quality indicators within regulatory limits 2022 2023 2024 1Q25 1Q26 -62% 1,424 1,251 978 861 2022 2023 2024 1Q25 1Q26 538 New all-time high in the historical series Note: DEC = Equivalent duration of interruptions in the supply of energy per consumer unit; FEC = Equivalent frequency of interruptions in the energy supply per consumer unit; (1) DEC/FEC values may undergo minor revisions within the calculation and closing period with ANEEL. ‹ 6 › Light S.A. | 1Q26 Results Presentation DisCo 1Q26 DisCo Energy Loss Combat | Non-Technical Losses maintaining downward trajectory with a 7.1% YoY decline and stable mix Non-technical Losses (NTL) (GWh; LTM) 23.1% 23.0% 22.9% 23.3% 22.9% 14.3% 85.7% 14.1% 85.9% 8,792 8,532 8,365 8,488 8,170 14.3% 85.7% 14.2% 85.8% 14.2% 85.8% 1Q25 2Q25 3Q25 4Q25 1Q26 CTA Risk Areas Note: (1) Non-technical losses ex-REN, adjusted for non-recurring items. ‹ 7 › Light S.A. | 1Q26 Results Presentation DisCo 1Q26 DisCo CAPEX | Investment volume growth in 1Q26 (+18.4% YoY) with a focus on maintenance and expansion of the infrastructure Maintenance investments YoY + 11 % corr (R$1 ect 37 i mn undergroundev ), focused on works and LV 42 thousand Meters replaced and/or externalized in the quarter, with Loss Reduction Plan +30.5% YoY R$ 10 billion Investment plan for the next 5 years, ~2x the level of recent fiscal years Investments (R$ million) 288 Non-electrical Assets 137 124 73 88 51 64 40 51 341 +R$53 mn | +18.4% YoY Loss reduction plan and Other Expansion Maintenance 1Q25 1Q26 Light S.A. | 1Q26 Results Presentation ‹ 8 › DisCo 1Q26 DisCo EBITDA | Adjusted EBITDA of R$247 million in 1Q26 with PMSO reaching the expected recurring level PMSO comparison stabilizing, reflecting the cost structure as of end-4Q25 Increase in own headcount concentrated in field teams (74% of the total) Legal contingencies, with continuity of the improvement trajectory in case stock and new filings (-4.3% YoY) Adjusted EBITDA (R$ mn, quarter, ∆ YoY) -R$224 mn | -47.5% YoY 471 (-14.5% YoY) 247 (+38.5% YoY) (0) (0.3% YoY) 3 (-4.3% YoY) (92) (134) Adjusted EBITDA 1Q25 Δ Gross Margin Δ PMSO Δ PECLD (delinquency) Δ Provision for contingencies Adjusted EBITDA 1Q26 Note: 1) Adjusted EBITDA = CVM EBITDA, excluding VNR, other operating income/expenses, equity and non-recurring items. ‹ 9 › Light S.A. | 1Q26 Results Presentation Generation & Trading 1Q26 Generation and Trading EBITDA | Adjusted EBITDA of R$164 million in 1Q26 (+45.3% YoY) supported by higher volume traded and margin capture in an environment of greater volatility +40.6% YoY Volume traded by Light COM (1,026 MWavg) +42.8% YoY Adjusted gross margin (R$191 mn), capturing higher volume and attractive margins in an environment of PLD +94% YoY R$ 54M Net income impacted by the non-cash reversal of Light COM's MtM Adjusted EBITDA (R$ mn, quarter, ∆ YoY) R$51 mn | 45.3% YoY 164 113 (6) (27.8% YoY) (0) (42.8% YoY) 57 Adjusted EBITDA 1Q25 Δ Gross Margin Δ PMSO Δ Provision for contingencies Adjusted EBITDA 1Q26 Note: (1) Generation and Trading EBITDA excluding other operating revenues/expenses and mark-to-market effect of Light Com. contracts. ‹ 10 › Light S.A. | 1Q26 Results Presentation 1Q26 Consolidated Capital Structure | Balanced capital structure: long-term debt aligned with the post- renewal cash generation curve Amortization Schedule of the Principal of the Non-Convertible Debt (R$ million) 2,000 76 1,417 1,125 1,269 238 1,080 1,080 1,165 1,165 1,924 208 1,032 Net Debt (R$ bn) 7.9 8.4 Cash '26 '27 '28 '29 '30 '31 '32 '33-37 6.9 Light SESA Light Energia Light SA 6.5 6.4 Proforma Debt by Index 1Q25 2Q25 3Q25 4Q25 1Q26 Light S.A. | 1Q26 Results Presentation USD+3.5% 21% CDI 23% IPCA+4.23 56% ‹ 11 › Capital Increase | Concession Renewal unlocks the Company's capitalization measures, which will enable the new investment cycle Conditions Private Capital Increase with preemptive rights guaranteed to current shareholders Amount up to R$1.5 billion (minimum of R$1 billion) Issue price R$6.29 / share Additional advantage warrants Warrant exercise price 2 warrants : 1 share subscribed under preemptive rights R$0.01 / warrant Lock-up 30 months with 5 release windows Scheduled timeline Up to D+90 Next steps: Exercise of additional advantage warrants by holders of preemptive rights or unsubscribed shares Conversion of Local Debentures and Global Warrant (D) Renewal of the Distribution Concession 19/may Cut-off date for holding preemptive rights TBD Unsubscribed Shares Round 14/may Approval of the Capital Increase 20/may to 18/jun Trading and exercise of preemptive rights TBD Ratification of the private Capital Increase at Board of Directors Meeting (RCA) Q&A ri.light.com.br [email protected] Attention : This is an excerpt of the original content. 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