We are exposed to market risk from changes in both foreign currency exchange and interest rates. We are exposed to foreign exchange rate risk mainly because certain of our costs are denominated in currencies (U.S. dollars) other than those in which we earn revenues (primarily reais). Similarly, we are subject to market risk deriving from changes in interest rates, which may affect the cost of our financing. Since 1999, we began entering into hedging agreements, derivative instruments such as foreign exchange forward contracts, foreign currency options, interest rate swaps and forward rate agreements, to manage these market risks, covering payments of principal on our foreign exchange, when existent, denominated indebtedness. We also have entered into arrangements to hedge market risk deriving from changes in interest rates for some of our debt obligations. We do not hold or issue derivative or other financial instruments for trading purposes. Interest Rate Risk On December 31, 2025, the amount of our outstanding debt which accrued interest at the CDI and IPCA floating interest rates totaled R$2,779 million, compared to R$3,036 million for the year ended December 31, 2024. On the same date, we had cash and cash equivalents and marketable securities in the amount of R$5,884 million in instruments accruing interest at the CDI rate, as compared to R$5,693 million on December 31, 2024. Over a one-year period, before accounting for tax expenses, a hypothetical, instantaneous and unfavorable change of 100 basis points in interest rates applicable to our financial assets and liabilities on December 31, 2025, would have resulted in a variation of R$27.8 million in our interest expenses from financial contracts and a variation of R$58.8 million in our income from financial investments (assuming that this hypothetical 100 basis point movement in interest rates uniformly applied to each “homogenous category” of our financial assets and liabilities and that such movement in interest rates was sustained over the full one-year period). For further information on our interest rate risks and related sensitivity analysis, see Note 36 to our audited financial statements. Exchange Rate Risk As of December 31, 2025, we did not have any outstanding unhedged financial loans denominated in foreign currency and were thus not exposed to exchange rate risk based on our loans. We enter into hedging agreements to hedge our borrowings denominated in foreign currency, when existent, and thus have limited our exchange rate exposure regarding such borrowings. Our revenues are earned almost entirely in real, and we have no material foreign currency-denominated assets. We acquire our equipment and handsets from global suppliers, the prices of which are primarily denominated in U.S. dollars. Thus, we are exposed to foreign exchange risk arising from our need to make substantial dollar-denominated expenditures, particularly for imported components, equipment and handsets, that we have limited capacity to hedge. In order to hedge part of the exchange rate risk linked to capital expenditures and operating expense, a bandwidth of -/+ 15% is generally negotiated into our agreements in order to minimize effects of exchange rate fluctuations on the acquisition costs of equipment. As of December 31, 2025, we did not have call options. For further information on our exchange rate risks and related sensitivity analysis, see Note 36 to our audited financial statements.