CEEB5 Coelba

Neoenergia Coelba, identified on B3 by the tickers CEEB3, CEEB5, and CEEB6, is an electric power distribution utility operating predominantly in the State of Bahia. Established 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 a privatization process in an auction held on the then Rio de Janeiro stock exchange, when it was acquired by a consortium led by Neoenergia. As of the execution of Concession Agreement No. 010/1997, Neoenergia Coelba began to operate electric power services in its concession area for an initial term of 30 years, until August 7, 2027. This agreement has been the subject of regulatory discussions for extension in line with recent guidelines from the federal government and ANEEL.

Over 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 segregated its generation and transmission activities, transferring assets and liabilities related to these areas to Afluente, as well as stakes in other group companies to Neoenergia S.A. Since then, its operations have become focused on the distribution and sale of electric power to end consumers in its concession area. Neoenergia, the distributor’s controlling shareholder, gradually increased its equity interest from 96.65% in 2015 to 98.98% in 2023, consolidating virtually full control of the operation.

Neoenergia Coelba’s core activity is electric power distribution, with 100% of net revenue concentrated in this segment. The company receives power from the National Interconnected System, steps down the voltage to commercial levels, and delivers it to the end consumer, also being responsible for purchasing power for the captive market, contracting demand on the basic grid, and passing through sector charges. Revenue comes mainly from power supply to the captive market and compensation for the availability and use of the distribution system by free customers. In 2024, gross revenue was heavily concentrated in “Power supply” and “Electric grid availability,” which together accounted for about 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 figure that reached around 6.9 million consumers at the end of the first nine months of 2025. Distributed energy, considering captive, free, and distributed generation markets, reached 24,641 GWh in 2024, with operating indicators such as SAIDI (DEC) and SAIFI (FEC) on an improvement trajectory, signaling efforts to enhance supply continuity. The company does not have material concentration in any single customer, with no consumer accounting for more than 10% of net revenue, resulting in a diversified revenue base across residential, commercial, industrial, rural, and other segments.

The electric infrastructure operated by Neoenergia Coelba is extensive and capital intensive. In September 2025, the company operated about 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 service across a state with a large territorial area and a significant inland population. Operations are complemented by mobile structures, such as mobile substations, transformers, and circuit breakers, which provide flexibility in managing contingencies. Ongoing modernization of this network, together 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 branches, as well as an accredited service network distributed across all municipalities in the concession. The company operates a 24-hour call center, with services provided via IVR, live agents, and, more recently, integration among the different distributors of the Neoenergia group to optimize contingencies and quality. Digital channels have been gaining traction, with a proprietary app, online agency, WhatsApp service, negotiation portal, and interaction via social media, which together generate tens of millions of services per year. This digitalization aims to support the expansion of the customer base and the management of power outage requests, negotiations, digital billing, self-meter reading, and other services associated with the power user experience.

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

In the economic and tax field, Neoenergia Coelba benefits from tax incentives granted by SUDENE, with a 75% reduction in income tax on operating profit until 2027, as a result of modernization investments in the infrastructure sector in the Northeast region. This government grant is accounted for in accordance with practices defined by the CVM and affects earnings generation and capital structure, without changing 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 observed by capital market participants monitoring 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 the regulatory framework of the Brazilian power sector. Power demand in its concession area shows seasonality influenced by temperature and consumption behavior in the residential and commercial classes, while customer base expansion, the development 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 is consolidated as one of the main electric 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.