SAPR11

Companhia de Saneamento do Paraná – Sanepar was incorporated 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 vocation as a 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. Also 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 to the capital markets and access to new long-term funding 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, a segment that requires stricter rules on transparency and protection of minority shareholders. In 2017, it implemented the units program, and SAPR11 units began trading on the exchange alongside SAPR3 common and SAPR4 preferred shares. Subsequently, 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 broadened 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 operating area. As of 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 where it operates. The water distribution infrastructure comprised about 62.5 thousand kilometers of pipelines and approximately 3.5 million water connections, while the sewage system had about 43.4 thousand kilometers of collection networks and 3.5 million “economias” (billing units), with 100% of collected sewage being treated. The company also carries out studies, projects and expansion works for networks, expanding its base of operating assets.

From a business model and operating segmentation standpoint, Sanepar organizes its activities into two main segments: water supply systems and sewage collection and treatment systems, including solid waste processes 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, with a focus on urban solid waste. The incorporation 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 in a unit integrated with the Belém WWTP (ETE Belém), demonstrating adjacent diversification within the sanitation chain and use of byproducts.

Sanepar’s services are mainly aimed at residential, commercial, and industrial consumers in the urban areas of the municipalities it serves, without any material concentration in a single customer representing 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, accounting for about 21.69% of the volume captured, in addition to 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 accordance 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 activities are concentrated in Brazilian territory, with all revenue coming from customers located in Brazil. The company operates mainly in Paraná, with a limited presence in Santa Catarina, and does not report material revenue abroad. This characteristic heightens its exposure to domestic regulatory frameworks and economic conditions, as well as to the state sanitation policy. The company also works with federal, state, and municipal bodies on projects related to water resources, urban drainage, and environmental protection, and provides consulting and technical assistance within its areas of expertise, inside or outside the territorial limits of Paraná, when applicable.

Regulation of the sanitation services provided by Sanepar is strongly 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 guidelines for universalizing services, sector planning, regulation, tariff policy, and service targets. The company is subject to program contracts and concession agreements signed with municipalities and, more recently, with water and sewage microregions created by State Complementary Law No. 237/2021, which divided Paraná into three microregions (West, Center-East, and Center-Coastal) for regionally provided 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 line with the regulatory framework, and carried out the second and third reviews in 2023 and 2025, respectively, adjusting water and sewage tariffs to maintain the economic and financial balance of its concessions.

In terms of environmental, social, and governance (ESG) practices, Sanepar publishes an Integrated Report every year covering its economic, social, environmental, and governance performance, following international standards such as Global Reporting Initiative (GRI) guidelines, International Integrated Reporting Council (IIRC) guidance, and Sustainability Accounting Standards Board (SASB) standards. The non-financial contents of the report are subject to limited assurance by an independent auditor, strengthening the reliability of the disclosed information. 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 treating 100% of collected sewage, initiatives in solid waste and bioenergy projects, and entry into the free power market to improve energy efficiency. These actions are part of a strategy focused on universalizing sanitation in its operating area 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.