SAPR11 Sanepar

The Paraná Sanitation Company – Sanepar was created in 1963 under State Law No. 4,684, initially under the name Companhia de Água e Esgotos do Paraná (Agepar). In 1964, the company adopted its current name, consolidating its role as the basic sanitation company for the State of Paraná. The company’s development gained scale starting in 1972, when it absorbed the Departamento de Água e Esgoto do Paraná and began operating the water and sewage systems of Curitiba and 15 other municipalities, serving hundreds of thousands of inhabitants. Still in the 1970s, it joined the National Sanitation Plan (PLANASA), becoming part of the federal policy to expand sanitation infrastructure. From the 2000s onward, Sanepar went through a capital markets opening process, initially registering on SOMA in 2000 and later listing on B3 in 2002, reflecting its transition into the capital markets and access to new long-term financing sources.

Over time, its ownership structure and relationship with the market deepened. In 2016, Sanepar carried out a re-IPO and its shares began trading in the Level 2 Corporate Governance segment of B3, which requires stricter rules on transparency and minority shareholder protection. In 2017, it implemented a unit program, and SAPR11 units began trading on the exchange alongside SAPR3 common shares and SAPR4 preferred shares. Later, in 2020, the company approved a stock and unit split, tripling the number of each security in circulation without changing rights. This set of measures expanded the shareholder base and consolidated Sanepar as one of the main utilities listed on B3.

Sanepar’s core activity is the provision of public services and private systems for treated water supply, collection and treatment of sanitary sewage, as well as the disposal of urban and industrial solid waste in its area of operation. On December 31, 2024, the company provided water services in 344 of the 399 municipalities in Paraná and also in the municipality of Porto União, in Santa Catarina, serving approximately 4.3 million water consumer units, with 100% coverage of urban households in the areas in which it operates. The water distribution infrastructure totaled about 62.5 thousand kilometers of pipelines and approximately 3.5 million water connections, while the sewage system comprised around 43.4 thousand kilometers of collection networks and 3.5 million billed units, with 100% of collected sewage being treated. The company also conducts studies, projects and expansion works on the networks, expanding its base of operating assets.

From a business model and operating segment standpoint, Sanepar organizes its activities into two main segments: treated water supply systems and sanitary sewage collection and treatment systems, including the solid waste process within the latter. In 2024, the water segment accounted for 61.7% of net operating revenue, while the sewage segment represented 38.3%, highlighting the economic predominance of water distribution within the service portfolio. The operation of municipal landfills in Cianorte, Apucarana and Cornélio Procópio complements the sanitation business, focusing on urban solid waste. The merger of CS Bioenergia in 2023 added expertise in the proper disposal of organic waste and sludge from sewage treatment plants, with biogas production and power generation at a unit integrated with the Belém Sewage Treatment Plant (ETE Belém), demonstrating adjacent diversification within the sanitation chain and use of by-products.

Sanepar’s services are aimed mainly at residential, commercial and industrial consumers in the urban areas of the municipalities it serves, with no significant concentration in any single customer that accounts for more than 10% of net operating revenue. The water supply process covers abstraction from surface and underground sources, treatment at specialized plants and distribution through an extensive network of reservoirs and pipelines. In December 2024, the company had 1,217 operating wells, responsible for about 21.69% of the volume abstracted, as well as 227 surface abstraction points, which accounted for approximately 78.31% of raw water. The treatment cycle includes coagulation, flocculation, decantation, filtration, disinfection with chlorine, fluoridation and pH correction, in compliance with drinking water standards set by the Ministry of Health and parameters of the World Health Organization. The company continuously monitors water losses and uses indicators such as the Losses per Connection Index, following the SINISA standard, and maintains accredited laboratories based on ABNT NBR ISO/IEC 17025:2017 to ensure quality control.

Sanepar’s operations are concentrated within Brazil, with all revenue coming from customers located in the country. The company operates mainly in Paraná, with a limited presence in Santa Catarina, and does not record any material revenue abroad. This characteristic heightens its exposure to domestic regulatory frameworks and economic conditions, as well as to state sanitation policy. The company also works with federal, state and municipal agencies on projects related to water resources, urban drainage and environmental protection, and it provides consulting and technical assistance in its areas of expertise, within or beyond the territorial boundaries of Paraná, where applicable.

Regulation of the sanitation services provided by Sanepar is heavily influenced by federal and state legislation. Law No. 11,445/2007, known as the Basic Sanitation Law, and its update by Law No. 14,026/2020, which established the new Sanitation Legal Framework, set out guidelines for the universalization of services, sector planning, regulation, tariff policy and service targets. The company is subject to program and concession contracts entered into with municipalities and, more recently, with water and sewage microregions created by State Supplementary Law No. 237/2021, which divided Paraná into three microregions (West, Center-East and Center-Coastal) for the regionalized provision of services. The Regulatory Agency for Delegated Public Services of Paraná (Agepar) plays a central role in regulation, oversight and definition of tariff parameters, including periodic tariff reviews. Sanepar completed its first tariff review in 2017, in compliance with the regulatory framework, and carried out its second and third reviews in 2023 and 2025, respectively, adjusting water and sewage tariffs to maintain the economic and financial balance of the concessions.

In terms of environmental, social and governance (ESG) practices, Sanepar publishes an annual Integrated Report covering its economic, social, environmental and governance performance, following international standards such as the Global Reporting Initiative (GRI) guidelines, the International Integrated Reporting Council (IIRC) framework and Sustainability Accounting Standards Board (SASB) standards. The report’s non-financial content is subject to limited assurance by an independent auditor, reinforcing the reliability of the information disclosed. The company was included in the 2023 portfolio of B3’s Corporate Sustainability Index (ISE), reflecting the incorporation of sustainability criteria into its management. In its operations, it stands out for its 100% treatment of collected sewage, solid waste initiatives and bioenergy projects, as well as its entry into the free power market to improve energy efficiency. These actions are part of a strategy aimed at universalizing sanitation in its area of operation by 2033, managing climate and regulatory risks and strengthening corporate governance, in line with legal requirements and capital market expectations, where SAPR3 and SAPR4 shares and SAPR11 units remain traded on B3.