CEEB3

Neoenergia Coelba, listed on B3 under the tickers CEEB3, CEEB5 and CEEB6, is an electric power distribution utility operating predominantly in the State of Bahia. Incorporated in 1959 as a mixed-capital company controlled by the State of Bahia, it obtained federal authorization in 1960 to operate as a power concessionaire. In 1994 it became a publicly held company and, in 1997, underwent privatization through an auction held on the then Rio de Janeiro Stock Exchange, when it was acquired by a consortium led by Neoenergia. Following the execution of Concession Agreement No. 010/1997, Neoenergia Coelba began to operate power services in its concession area for an initial term of 30 years, until August 7, 2027, a contract that has been subject to regulatory discussions for renewal in line with recent guidelines from the federal government and ANEEL.

Throughout the 2000s, the company’s business model was adjusted to the restructuring of the Brazilian power sector. In 2005, in compliance with sector legislation and the unbundling policy, Neoenergia Coelba separated its generation and transmission activities, transferring assets and liabilities related to these areas to Afluente, as well as interests in other group companies to Neoenergia S.A. Since then, its activities have focused on the distribution and sale of electricity to end consumers in its concession area. Neoenergia, the parent company of the distributor, gradually increased its ownership stake, from 96.65% in 2015 to 98.98% in 2023, consolidating virtually full control of the operation.

Neoenergia Coelba’s core activity is electricity distribution, with 100% of net revenue concentrated in this segment. The company receives energy from the National Interconnected System, steps the voltage down to commercial levels and delivers it to the end consumer, and is also responsible for purchasing energy for the captive market, contracting demand on the basic grid and passing through sector charges. Revenue arises mainly from supplying energy to the captive market and from remuneration for the availability and use of the distribution system by free customers. In 2024, gross revenue was heavily concentrated in “Power supply” and “Availability of the power grid,” which accounted for around 82% of gross revenue, reflecting the regulated and recurring nature of the distribution business.

Neoenergia Coelba holds a concession to distribute electric power in 415 of the 417 municipalities in the State of Bahia, in addition to the municipalities of Delmiro Gouveia, in Alagoas, and Dianápolis, in Tocantins, covering approximately 563 thousand km² of concession area. In 2024, it served more than 6.6 million consumer units, a number that reached around 6.9 million consumers at the end of the first nine months of 2025. Energy distributed, including captive, free and distributed generation markets, reached 24,641 GWh in 2024, with operational indicators such as DEC and FEC on an improving trend, signaling efforts to enhance supply continuity. The company does not have any material concentration in a single customer, with no consumer accounting for more than 10% of net revenue, resulting in a revenue base that is spread across residential, commercial, industrial, rural and other segments.

The electrical infrastructure operated by Neoenergia Coelba is extensive and capital intensive. In September 2025, the company operated around 380.9 thousand km of distribution networks, 11.8 thousand km of high-voltage lines and 384 substations, with installed capacity of 8,047 MVA. The asset base also included approximately 344.8 thousand distribution transformers and more than 5 million poles, enabling dispersed service in a state with a large territorial extension and a significant inland population. The operation is complemented by mobile structures, such as mobile substations, transformers and circuit breakers, which provide flexibility in contingency management. The continuous modernization of this network, combined with investments in automation and expansion, directly affects supply quality, technical and non-technical losses and the distributor’s operating efficiency.

Customer relations are supported by a multichannel service structure. In September 2025, Neoenergia Coelba maintained dozens of physical and mobile stores, in addition to an accredited service network distributed across all municipalities in the concession area. The company operates a 24-hour call center, with services provided via IVR, human agents and, more recently, integration among the different distributors in the Neoenergia group to optimize contingency management and service quality. Digital channels have a growing role, with its own app, web agency, customer service via WhatsApp, negotiation portal and interaction on social networks, which together account for tens of millions of services per year. This digitalization aims to support the expansion of the customer base and the handling of outage requests, negotiations, e-billing, self-meter reading and other services associated with the power user experience.

Neoenergia Coelba operates in a natural monopoly environment in distribution, subject to strong government regulation. The Ministry of Mines and Energy sets guidelines for the sector, while the National Electric Energy Agency (ANEEL) is responsible for regulating and overseeing the concession, setting tariffs, quality targets and general conditions for service provision. The company also interacts with bodies such as the National Energy Policy Council, the Electricity Sector Monitoring Committee, the National System Operator and the Power Trading Chamber, which make up the institutional governance of the power chain. The distributor’s remuneration is structured to cover efficient costs and ensure a return on the regulatory asset base, partially mitigating volume risks and allowing a certain degree of revenue predictability, although subject to periodic tariff reviews and incentives related to losses and service quality.

In the economic and tax sphere, Neoenergia Coelba benefits from tax incentives granted by SUDENE, with a 75% reduction in income tax on operating profit until 2027, due to modernization investments in the infrastructure sector in the Northeast region. This government grant is recognized in accordance with practices defined by the CVM and affects earnings generation and capital structure, without altering the regulated nature of the business. In environmental, social and governance terms, the company has reported its performance in an annual sustainability report since 2004, following internationally recognized standards such as GRI, SASB, TCFD recommendations (incorporated into the ISSB) and ANEEL’s sector manual. The company, through its parent Neoenergia, discloses information on climate aspects, governance practices and social and economic impacts, aligning itself with global transparency benchmarks that tend to be monitored by capital market participants who follow the CEEB3, CEEB5 and CEEB6 shares on B3.

From a geographic and external risk exposure standpoint, Neoenergia Coelba’s operations are fully concentrated in Brazil, with no revenue generated in other countries. This implies concentration in domestic macroeconomic, regulatory and climate factors, particularly in the economic dynamics of Bahia and in the regulatory framework of the Brazilian power sector. Energy demand in its concession area shows seasonality influenced by temperature and consumption behavior of the residential and commercial classes, while customer growth, the evolution of distributed micro and mini generation and the performance of the state’s industrial, commercial and rural sectors contribute to the growth profile of distributed energy. In this context, Neoenergia Coelba has established itself as one of the main power distributors in the Northeast, with shares traded on B3 and an exclusive focus on the distribution and sale of energy in its regulated concession area.